I'd like to call this meeting of the executive committee to order.
You would all take your seats.
Thank you.
We'll now have a safety briefing by Frank Cusby on our chief safety, security, and compliance
officer.
And how many more do you have to go?
One more at the board.
Very good.
Go ahead, Frank.
Okay.
Now we're on.
Thank you.
So as a reminder, in the event of a fire alarm activation, we're all going to commonly,
formally exit the building, go downstairs
and stage front of the Metro customer service,
and to wait for the instructions.
In the rare event we have an earthquake,
I'm gonna ask and we're gonna drop, take cover,
wait until the shaking stops, and at that point,
we'll do an assessment whether or not
an evacuation is necessary.
In the event of a situation, someone requiring first aid,
I will be your first aid provider.
I'll ask Ms. Paney to contact the Metro security front desk
where the AD is also located.
And then finally, in the event of an active attacker,
I remind you to run, hide, and fight.
And those of you remote, please be aware of your environment, exits, et cetera.
And then finally, for all the dads out there, shout out from another dad.
I hope you guys have a great Father's Day, and that concludes this morning's safety briefing.
Thank you very much for the greeting and for the safety briefing, Frank.
We will miss you.
I will miss you too, sir.
Anyway, today is also Flag Day, in addition to Father's Day coming up.
So I would ask all of you to join me and repeat with me the 31 words that honor the flag
that represents our great Republic.
Please stand.
Adam Clark, would you call the roll?
Vice Chair Chafee.
Second Vice Chair Burksen.
Director Tremblay.
I think there's an issue with the...
Director Tremblay.
Wake up.
Yes.
Sorry, we're calling a roll. Director Najarian.
Chair McAllen. Here. We do have a quorum present. We lost her. There they come back. Very good.
Thank you. Do we have any public comment? I have not received any written public comment
or any requests to speak. Good. We'll move on to our regular calendar.
Approval of the minutes, meeting minutes of May 10th. Is there a motion on that item?
Move approval, Najarian we have a motion and a second, please call the vote, please
Vice chair chafee
second vice chair, Bergson
director Tremblay
abstain due to absence
director Najarian. Yes, chairman Callan. Yes a motion carried with director Tremblay abstaining
thank you very much on to our
annual renewal of insurance program for 24 25 fiscal year presented by Raymond Barrera our senior council and
risk manager
Raymond go ahead
Raymond array
either either or
Whatever you like I get called both. So what do you like Ray because it's shorter?
Very good. Well, my name is Larry. It's not Lawrence. So I don't have an issue with that
Go ahead to know. Thank you. Good morning, Chair McCallum and committee members
Also with us today is Craig Morris the lead representative from Marsh our longtime insurance broker
Next slide, please
the authority utilizes insurance to mitigate its operating and other major risks and and
And Board approval is needed to renew the insurance program policies of insurance for
fiscal year 2024-25.
Next slide.
The operating general liability tower of insurance makes up more than 50 percent of the program's
premium costs and protects the authority.
In the event a catastrophic incident occurs causing injuries and or property damage to
third parties.
In our marketing earlier this year to underwriters, we highlighted Metrolinx' commitment to safety
through its use of positive train control, crash energy management cars, and ongoing
training, testing, and monitoring of operators and crew members.
Next slide.
Here's a depiction of the liability coverage tower with a primary layer of insurance of
of $20 million, starting at the bottom, and then going upwards,
followed by six excess layers of insurance,
totaling $347.5 million in coverage.
Next slide.
Various market factors listed here
have created a challenging environment
for procuring insurance, notably a lack of new and sure
participants in the market and inflation.
Despite these conditions, we have successfully constructed the tower
at a total premium nearly matching last year's costs.
Total premium for the OGL coverage is $9,100,215.
Additional liability coverages include terrorism liability coverage,
which came in at $263,109 at 11 percent increase in premium employment practices liability
came in at $301,286 matching last year's premium and lastly pollution liability at $91,044
nearly matching last year's premium. The next part of the insurance program is our property
coverages. The property coverage of $100 million is not yet complete, but will be in place
for timely renewal on best terms and conditions at a not to exceed cost of $7,390,420, a 20%
increase in premium. The additional property coverages include stand-alone terrorism. That
That cost came in at $90,164, an 11% increase in premium, and boiler and machinery coverage
at $94,664, an 18% increase in premium.
The total not to exceed property renewal premium is $7,575,248.
Next slide.
The final part of the insurance program includes these miscellaneous coverages for fleet, automobile,
workers compensation, public officials, E&O, crime insurance, and cybersecurity privacy risk.
Most notably at the top is the auto insurance coming in at a significant increase, which caught our attention.
And that is due to a number of factors.
Notably, we only received one quote from the market, one insurer willing to take on this
business.
And what we're hearing is that there's, as we all hear, increase of large jury verdicts
solving auto liability matters and in addition to the factors related to inflation and the
increase in cost to repair and so resulting in an increase.
So that is the one to note here.
cost of this insurance, all of the insurance, 1.34 million. It is recommended the board
authorize the chief executive officer to purchase insurance for the 2024-2025 insurance year
for total premium costs, not to exceed $18,015,732, consisting of liability-related insurance
at a cost of $9,100,216, property-related insurance
for not to exceed cost of $7,575,248,
and other insurance coverages identified at a cost of $1.340 million.
The total premium cost is 9.76% higher than last year's and is under budget
for the proposed fiscal year 2024 budget.
Next slide.
Thank you.
This concludes my presentation
and happy to answer any questions if there are any.
Thank you, Ray.
Any comments or questions from committee members?
Mr. Chair?
Go ahead, Mr. Trinity.
Thank you and thank you, Ray, for the report
and thank you for all of your work on this
and thank you to our marsh representative.
A question on the property insurance market.
I'm unclear on one thing.
Could you help me on this?
Is it the recommendation to an understanding
that we don't yet have finalized quotes,
which makes it a little uncertain,
is the recommendation that Metrolinx purchase $100 million
in coverage limits, or is it to buy as much as possible,
which perhaps would equal less than 100 million
coverage limits for the $7.39 million figure quoted. We are proceeding to procure $100
million in property coverage as we have done historically and we expect that to be in place
before expiration at the end of this month. Well I guess as a follow-up question if we
don't yet have the quotes how do we know that it's going to be the $7.39 million figure
cited yes that number has been determined by our our broker based on
information currently being obtained from the market in pricing so that that
is we're requesting not to exceed authority with respect to property but
okay calculating everything altogether gets you to the the larger number total
Okay all right thank you thank you Mr. Chair. Any other comments or questions?
If not this is an action item if I could have a motion. Tremblay move.
We have a motion and a second. Madam Clerk would you call for the vote? Vice Chair Chafee second
Vice Chair Bergson. Yes. Director Tremblay. Yes. Director Najarian. Yes. Chair McAllen. Yes.
Motion carried unanimously. Thank you very much. Thanks. Right. We do have a request to speak from the public on this item
Okay
Call Donald Harlan up
Donald Harlan speaking on this is the
Item 6b the annual renewal of insurance program for 2024 2025 fiscal year. Is that correct? That's correct. I
Just have a couple concerns that
buying a necessary insurance, about buying a necessary insurance, that somebody may be
trying to add insurance unnecessarily into Metrolink. And there should be insurance,
property insurance, along the path everywhere Metrolink goes. But also consider that the real
estate along the Metrolink path, along the Metrolink rails, is unlawfully developed.
and the responsibility of the insurance company to pay for property damage to
unlawfully develop real estate is very very small chance of that happening and
maybe it's possible Metrolink could negotiate for a better rate and
consideration they'll probably never ever use that insurance it's pretty clear
who owns the real estate along the rails,
along the Metrolink rails,
and that the houses there and the structures there
are supposed to, if something happens to those properties,
it's a pretty good deal for the insurance company.
100 million dollars is quite a bit.
That should be fine.
But my concern is they're trying to add insurance
that we are, yeah, try and sue Metrolink
and they're not even supposed to be there.
Maybe you could do something to help
keep the class down on you.
Next we have our Time Extension,
Rail to Rail and Code Share Program,
presented by Monica Correa,
our Senior Manager of Railroad and Real Estate Services.
Monica.
Good morning. Good morning.
Chair and members of the committee,
I'm here to recommend to the committee
that we advise the board to authorize
the chief executive officer to negotiate
and execute an amendment to the existing rail to rail
and co-chair agreement number L9005,
which essentially would authorize 12 additional months
to run the rail to rail and co-chair program
up until June 30th of 2025.
Currently, the agreement is set to expire
at the end of this month.
And so originally your packet had suggested
a six month time extension.
That was originally per the request of Losian.
Apparently, they're going through a fair restructure.
And so they wanted to go through the logistics
of setting that program up before we would extend
the agreement, but recently they came back
and said that they would be open
for a one year time extension.
Next slide please.
And I'm here to answer any questions
that the committee might have.
Any questions on this item?
Seeing none, this is an action item.
Is there a motion?
Is there a second?
I'll move the item.
We have a motion and a second.
Would you call for the vote?
Vice Chair Chaffee.
Second Vice Chair Bergson.
Director Tremblay.
Yes.
Director Najarian.
Yes.
Chair McCallin.
Yes.
That motion carried unanimously.
Thank you.
Next, we have our legislative operate, receive and file.
Presented by Anna Dunnick,
our Senior Manager of Government Relations.
We do have a request to speak on that item
from a member of the public.
Please come up.
Anna, you're up.
All right, good morning.
Thank you, Chair and members of the Executive Committee
having me. Next slide. So on the local side, Metrolink government and community
relations staff are focused on strengthening our relationship with
community-based organizations or CBOs. In May, we attended the second annual
convening of nonprofits and foundations at LA Valley College. In the week of July
8th, we will be hosting a virtual gathering to hear from CBOs along our
lines. The invitation list for that is about 400 organizations and our goal is
to better understand what these groups would like from our service and how we
can continue to be good community partners. Next slide. On the state side
at the board meeting earlier this month you heard from Jeff Dunn about our trip
to Sacramento as part of the California Transit Association's spring legislative
conference. Darren Kettle, Paul Hubeler, Jeff Dunn and myself were there among
other things to make the case that SB 125 funding is critical for the future
of Metrolink. It's not quite yet time to celebrate but early indications are
that our efforts were successful. We are cautiously optimistic that the current
fiscal year SB 125 funding which was frozen on April 29th will be released at
the end of this month. Statewide that amounts to about 2.4 billion in
available funding for transit projects part of the larger multi-year five point
one billion SB 125 funding package. Meanwhile both houses of the state
legislature passed AB 107 yesterday the budget act of 2024. AB 107 retains
future SB 125 funding in full and represents the legislature's priorities
as negotiations with the governor get underway. As a reminder the governor's
may revise proposes cutting 148 million in unspent money from last year's TARCP
cycle 6. Negotiations between the legislature and the governor are, as I
mentioned, underway and will conclude on or around June 27th. I'll note that
transit overall is reasonably well positioned in a difficult budget year, but
maintenance of SB 125 funding is not guaranteed in the final budget. There are
bigger areas of disagreement between the legislature and the governor and
resolving those differences will require money which has to come from somewhere.
Next slide. And then finally on the federal end, Metrolink was represented
at the Mobility 21 Washington trip by Darren Kettle. Last week Darren and other
coalition members met with Transportation and Infrastructure Committee
Chairman Sam Graves, Representatives Judy Chu and Ken Calvert, and Deputy
Assistant to the President for Infrastructure Implementation, Samantha
Silverberg, among others. Topics included the 2028 games and our pending MetroLink
federal grant applications. Thank you again for having me and I'm happy to
answer any questions. Thank you very much Anna. Any questions, comments from
committee members. Seeing none this is a receiving file without objection that's
what the committee will order. Next we have our chief executive officers report.
Yes thank you Mr. Chair. Again we just have a couple of items because I read
through that the quote in the article from the Orange County Register the last
meeting I think everybody is still here in the room. I will not go back through
it but again I want to acknowledge the hard work by our program delivery team
and our operations team our procurement team for the success on the
the implementation of the smart crossing technology
in San Juan Capistrano and our continued pursuit
to have that technology throughout our system.
So again, great work everybody.
And then as has been indicated by our chair,
our chief of safety, security and compliance,
Frank Castellan is gonna be departing Metrolink
at the end of next week and moving on to a new adventure.
And so thank Frank for his service,
but also acknowledge that Tim Morehead,
our Director of Signal and Track Infrastructure Maintenance
has agreed to step into the interim role.
Tim also has certifications in transit security and safety,
so he comes with some credentials on that,
and Frank Castellanos developed a strong team,
and Tim is gonna come in and lead that in the interim basis.
Mr. Chair, that concludes my remarks.
Thank you very much. Any questions comments from anyone? Okay onto our board
member comments. Anyone have anything they'd like to add? Seeing none I have no
comments other than remember that today is represents the Flag Day and Happy
Father's Day to everyone. That's a father so any or grandfather or great
grandfather like myself have a great weekend thank you we're adjourned thank
you mr. chair have a good weekend everyone