Good morning. My pleasure to call this meeting to order. We'll start with our safety briefing.
I call on Tim Morehead, our Chief Safety Officer, to give us a safety briefing.
Good morning, Chair. Good morning, members of the board. Today's safety briefing is a reminder that in the event of a fire alarm activation,
we're going to collectively exit the board room, down the escalators, out the double doors,
we can meet on the right side there by the Metro customer service and await further instructions.
In the event of an earthquake, I'm going to ask everybody to stop, drop, take cover,
let's wait for the shake and the stop, and then we can make an assessment if a
evacuation will be needed. Be aware of your surroundings, look around you for backpacks,
extension cords, purses, slip, trip, fall hazards, that way if we do have to exit, we are
not adding to the chaos of exiting a building.
In the event of a first aid situation,
we do have first aid responders in the room
as well as an AED device located out in the hallway
across from LA Metro's security.
In the event of an active attacker,
let's remember the three key words, run, hide, and fight.
That concludes today's safety briefing, thank you.
Mr. Chair, before we jump into the pledge,
if I could just make one quick remark.
So Tim Morehead has stepped in as our interim chief safety
security and compliance officer.
He had been doing work as our director of track and signal.
And I picked him to jump into this spot on the interim basis.
And today is actually Tim's last safety briefing.
He's going to be going back to his other assignment.
I'm really pleased.
You'll receive more information on this
over the course of the next couple of days.
I have selected a new chief of safety security
and Compliance, a gentleman by the name of Hilary Conscull,
who's just left his position with Chicago Metra,
the single largest commuter rail system in the country.
He's come to join us.
He's there as Chief of Safety.
Tim has met him.
We've already had a great exchange of information.
And I just want to say thanks to Tim for stepping in.
He has done a magnificent job with the team.
And I just, again, Tim, thank you very much.
It was very much appreciated.
You did a great job in the role.
Thank you, sir.
On behalf of the board, I join in thanking you
for your service.
Now, our pledge of allegiance is read by Vice Chair Brian
Burson.
At this time, I would ask the clerk
to conduct a roll call to be certain we have a quorum.
Certainly.
Director Nguyen, Director Dumitrou, Vice Chair Burson,
Director Spiegel.
Director Vargas.
Director Molina.
Second Vice Chair Tremblay.
Director Engler.
Director Barger.
Director Najarian.
Director Solis.
Director Olson.
Director O'Connor.
Director Allen.
Director Presiado.
Director McAllen.
Director Wapner.
Director DuTrey.
Director Marquez.
Chair Chaffee.
Present.
We do have a quorum present.
Thank you.
I'd like to welcome, we have a new ex-officio board member
here for his first Metrolink board meeting, Marty Simonoff.
And he's also our SCAG representative
and comes to us from the city of Brea.
I've seen him perform on the council a few times over there.
He's formerly a police captain with the city of Huntington
park and since his retirement has continued to evolve to public safety and crime prevention.
Mark, if you'd like to say a few words and introduce yourself?
No, it's something new for me to be here. It's going to be a new experience. I've been
looking forward to it. I had hoped that the President of Skag would make this appointment
for me, and he did. And so I will be carrying the message back to the Skag membership as
as to what transpires here,
and hopefully I get it all correct and accurate
so they get the great information moving forward.
So thank you for welcoming me, though.
Well, thank you for bringing your talents here,
and as our CEO mentioned,
we have a new chief security,
sorry, chief safety security compliance office
coming in, and that might be right up
what you'd like to participate in.
So thank you for joining us.
At this point in time, we have public comment,
Do we have any questions for public comment?
I do have a request to speak from Armando Saldana.
Please go forward.
Welcome.
I'm on the OC line, Irvine to Commerce, 14 years.
Good morning and thank you for giving the opportunity
to speak with you today.
I'm here to address the need for more morning train services,
particularly for professionals committing to their jobs.
Friends continue to be constantly late or canceled
as they were this Tuesday, this council,
and late on Thursday.
In fact, today, I drove in, come on to be on time.
As we know, the morning west shower
wears a critical time for many of us
trying to get to work on time,
and the current schedule simply isn't cutting it.
More and more professionals are relying
on public transportation to get to their jobs,
and it's clear that our current hourly train system
has not been in the demand.
The lack of available training options in the early mornings
has caused significant challenges for commuters,
and by addressing this gap,
we can alleviate traffic congestion, reduce stress
with thousands of people and improve the overall efficiency
of the workforce in our city.
Firstly, let's talk about the practical implications.
Professionals often have early meetings or commitments
that require them to arrive at work on time.
With the limited train options available
in the early morning, many are forced to leave
even earlier than necessary or worse risk being linked.
This not only affects their productivity
and mental well-being, but also impacts their work performance.
By adding more training services during peak morning hours, we can ensure that professionals
have a reliable and convenient option to get to work on time, giving them a sense of confidence
and stability in their daily commute.
Secondly, the environmental benefits of increasing training services cannot be overstated.
Encouraging more people to use public transportation rather than driving reduced traffic congestion
cuts down on carbon emissions and supports
a more sustainable city overall.
Every additional train that runs
means fewer cars on the road,
reducing pollution and fostering a cleaner,
greener environment for all.
The simple truth is that public transportation
is one of the most effective ways
to combat urban congestion
and environmental degradation.
And expanding train services
will directly contribute to that effort.
Finally, we can't ignore the economic benefits.
A more efficient train system
professionals will spend less time stuck in traffic waiting for the next
available train leading to greater productivity and satisfaction. This not
only benefits the commuters themselves but also contributes to their work for out of
time so we fast forward to the end. My questions for OSCE Line are why are
so many trains skipping the city of commerce? Commerce Transit offers free
shuttle services to Metrolinx station that are not being utilized. I'm hearing
rumors that they might can't close the commerce station and we need to station
stay active. We can't close conversation. How will adding midday trains help
communities I need get to work in the early morning? You've already made
improvements to the San Bernardino line. Get some improvements to the OC line.
That's about my time. I've emailed Michelle some suggestions, suggested that I
would like. That's just me. So, thank you. Thank you for comments. Our CEO has any
response particularly about our schedule changes? Mr. Chair the only response we
have is that certainly we've heard from our loyal riders regarding the schedule
change we have it is a big change we've talked about that it's the biggest
change in our in our systems history and we appreciate the feedback we get
from our riders we railroads don't turn on a dime so we're taking this
information and working with our member agencies we may be able to look at
opportunities for additional services the other thing though that I think is
important to note is and this board has heard us heard me talk about this at
great length the frustration we have with the Burlington Northern Santa Fe
Railroad and their dispatching of that corridor between Fullerton and Los
Angeles and if you're heading east all the way from Fullerton to Riverside and
San Bernardino we have seen some improvement on their dispatching of our
trains but not where we what we expect and what our riders expect so not only
do we have a schedule change that our writers have had to adjust to. We have
had to work with a freight railroad that has not been as as much of a partner as
we would like. So we continue to work on that and we will continue to work with
our member agencies about how we look at as we get to the next budget cycle
where we have opportunities for service. Last thing I'll leave Mr. Chair is on
that corridor we are what's called slot capped. On the corridor between Los
Angeles and Fullerton, we have a limited number of passenger slots that we're able to take
advantage of BNSF through our agreements. And so we have limits in how much service
we can put out there. And in fact, when we rolled out this schedule initially, BNSF shared
with us, we asked for more trains and BNSF required that we cut back four trains, two
round trips. So it's not for a lack of effort on our part, and we'll continue because we
We do hear our feedback from our riders,
and that matters to us.
Thanks, Mr. Chair.
Thank you for that comment.
We're constantly striving to increase our service,
but right away is an issue that always comes up.
At this time, Mr. Kettle, as our Chief Executive Officer,
you might want to recognize board members
for the years of service.
Yes, Mr. Chair, thank you,
and right at the top of the list is our new chair,
But what I would like to say is that,
so here we are, it's January of 2025,
and I have only five years of service to recognize.
So these five years though,
what a crazy five years that these five folks have,
these three folks have had to endure.
You joined us just as we were going into a pandemic,
and as we've come through this.
So talking about an unprecedented period
of serving at the Metrolink board,
nobody can say that your entire time
for all intents and purposes,
was in the middle of a global pandemic.
And so my thanks to director and chair, Doug Chaffee,
director John DuTray, and director Tony Trembly,
who still blames me for having him sit on this board
because of my prior capacity
while I was serving as the executive director.
No rebuttal, sorry, sir, no rebuttal.
In any event, I have certificates for all three of you.
So I don't know if we'll be,
maybe we take advantage after, or do it now.
I guess the boss over here says we're gonna do it now.
So Doug Chafee, Tony Tremblay, and John Dutre.
We were gonna put a plaque, who can take a picture?
It's a really hot one, it's wired.
Well, I'd like to thank you for the recognition,
and I'd like to say it's been a privilege
serve this board especially work with the staff this organization is all
striving to improve and oppose or the public and the staff is key to that so
I'd like to thank our staff for making our jobs easy all right now we move on
to a regular calendar at the approval of our minutes of our meeting in December
13 2024 I was absent from that meeting is there any discussion at the
correction if not I'd like a motion for approval second any objection seeing
none motion carries unanimously Oh Roxanne Randolph our director human
services will discuss an award merit pay to our director of audit good morning
chair chafee and members of the board I'm presenting item 7b request to award
award merit pay to director audit.
Next slide, please.
It is recommended that the board approve a 4.1% merit
increase for director audit Elizabeth Lizuardi retroactive
to July 1, 2024 for her outstanding performance
during the period ending June 30, 2024
as determined by the board during the closed session
on December 13, 2024.
A 4.1% merit increase is the rate provided to all regular full-time authority employees
who receive an outstanding performance rating.
Next slide, please.
That concludes my presentation, and I'm happy to answer any questions you have about this
item.
Any board questions?
And moved.
Moved and seconded.
Any objection?
Motion carries.
Thank you.
Thank you.
Next I'm presenting item 7c fifth amendment to the at-will employment
agreement for general counsel. Next slide please. It is recommended that the board
authorize the fifth amendment to the at-will employment agreement for
Don O. Del Rio general counsel increasing his base salary by 4.1% based on his
accomplishments and overall outstanding performance as determined during the
board closed session on December 13, 2024. The Fifth Amendment to Mr. Del
Reel's at-will employment agreement is attached for your reference. Next slide
please. Thank you. That concludes my item and I'm happy to answer any questions
that you have. Any questions?
It was second any objection motion carries. Thank you
We move on to our legislative program and Jeffrey Dunn and and I cut
Denneke will share with us your thoughts, please
Yes, thank you. Good morning. Mr. Chair members of the board. I'm here with my colleague Anna Denneke senior manager of government relations
to present Metrolinx 2025 legislative program for board consideration
providing guidance and
authorization to staff to pursue advocacy for Metrolinx before the
appropriate federal, state, and local legislative and regulatory bodies to
advance the priority policies and objectives beneficial to the railroad in
2025. The legislative program, as it does every year, builds upon the previous
year's board-directed priorities with further input and refinement provided
from all of Metrolinx internal departments, each of the member agencies
that make up our JPA, stakeholder partner agencies at the federal and state
levels, sharing similar issues and goals, and Metrolinx federal and state advocates
with whom we work closely to advocate and put into effect its provisions.
Next slide, please.
This year we highlight the priorities shown first to secure support for the 2028 Olympic
and Paralympic Games.
2025 is a pivotal year for this because to pass and obligate funding, perform the necessary
analysis and planning, procure required equipment and supplies, and implement for certain capital,
security and rolling stock needs. Funding and support must be secured this year in order
for there to be enough time to implement and put into operation by 2028. Additionally,
we will prioritize the need to protect the historic levels of funding in the current
Transportation Authorization Law, the IIJA, so they are not reduced or repurposed in the
successor authorization bill that will be considered this year in the new Congress as
the IIJA expires.
In addition to advocating for increased funding directly for passenger rail by expanding its
eligibility for existing federal programs and or creating new programs specifically
dedicated to regional and commuter rail.
At the state level, we will prioritize advocacy for the Outer Year Funding Commitments made
in the 2024 State Budget Act directing generous grant funding to the transportation sector.
And finally, building upon the Board's prior action to place Metrolink at the forefront
of sustainability and innovation within the industry, we will work with the new administration
in Washington as well as the state of California's nation-leading efforts to incentivize and
support the growth of innovation and clean, sustainable operation in the rail sector,
as we move towards the goal of eventual zero emissions operation as soon as is feasible.
Next slide, please.
Now I'd like to turn it over to Anna to talk a bit about our federal priorities, including
the Olympics, full authorization and appropriation of IIJA funding, regional rail programs proposals
for the new law, and on-time performance.
Anna?
Thank you.
As Jeff just mentioned, our first priority at the federal level will be securing significant
support for the 2028 Olympics and Paralympic Games.
Funding is needed for capital projects, operations, maintenance, and fleet readiness.
Importantly, investments are also needed to support safe and secure passenger transport.
This means funding both to address physical infrastructure vulnerabilities as well as
cybersecurity weaknesses. This Olympics ask will be one that our CEO makes in
Washington when he travels there next month. Our second goal identified in the
legislative program is to protect and increase federal funding available for
passenger rail. As Jeff mentioned this will include advocating for the full
appropriation of IIJA funds. As a reminder IIJA constitutes a roughly 33%
increase in funding for state of good repair projects and a five X thing of
available funds for things like the Crissy competitive grant program when
compared to fast act funding levels and as we look towards the next surface
transportation bill we have several priorities that we will work to advance
first we will advocate for the Crissy competitive grant program to be opened
up to commuter rail projects which is a long-standing objective of this board
Additionally, we will champion the establishment of a new funding stream for regional rail
capital and operations needs.
Congress has already begun work on reauthorization with hearings last week and this week.
And then finally, our third goal in the 2025 legislative program on the federal side is
continuing to advocate, continuing to advance Metrolinx position as a reliable and innovative
transit provider.
Our priorities here include advocating for robust funding to support clean energy technology
and for regulatory and funding mechanisms to facilitate on-time performance improvements.
I will now turn it back over to Jeff to bring us through the state and local legislative
program priorities.
Next slide, please.
Thank you.
In the near future, we will be presenting to you prospective revenue proposals for the
board's consideration to potentially secure a dedicated revenue source to
Metrolink that would relieve some of its reliance upon the member agencies for
operational support. This was originally to be shared at the board retreat today
that was postponed by the wildfires. When presented to the board, should use so
direct, Metrolink is prepared to incorporate strategic advocacy for any
such revenue proposals in this year's legislative session. In addition, as with
With our federal advocacy, Metrolink will work with the Newsom Administration and the
Legislature through the budget cycle to support Olympic-specific funding related to locomotive
and rail car rehabilitation, servicing vehicles, score capacity enhancement projects, and safety
and security enhancements to complement and supplement the federal acts we make in this
area.
We intend, too, with your support to continue advocacy for LC TOPS grant funding from Cap
and trade revenues for student and low-income fair programs that have been so instrumental
in bolstering ridership recovery since the pandemic.
We will support expansion of the state's efforts to incentivize low- and zero-emission technology
development in the rail sector, which has allowed development of the Arrow service in
San Bernardino and will soon become the first hydrogen-powered passenger service pilot in
the country.
Finally, we will advocate and support for the state to implement any levers at its disposal
to ensure compliance within the rail sector of acceptable on-time performance so critically
important for our passengers and necessary to continue our ridership growth and recovery.
In local matters, we have heard loud and clear from our station cities through the byline
meetings outreach conducted in 2024 that improving grade crossings and providing
assistance to establish quiet zones where appropriate continue to be a
priority that we should pursue. Likewise we will continue to support our city's
efforts to develop pedestrian active transportation and first last mile
improvements that work synergistically with Metrolinx service and station
infrastructure to provide seamless transportation options to residents and
passengers also as with state priorities to the extent the board directs any
revenue proposals to pursue at the local level we will prioritize such activity
and additionally we will work locally with our MPO and other partners to
ensure that regionally distributed funds for which Metrolink is eligible are
appropriately secured finally we will work with local cities as necessary to
to expedite right-of-way access permits,
so projects are not unduly delayed
due to our waiting for a permit.
Next slide, please.
Thank you, Mr. Chair and the board.
Adoption of the 2025 legislative program
is an action item,
and we respectfully request your approval.
We're happy to answer any questions
you may have if there are any.
Thank you.
Thank you.
Are there any questions from board members?
Any suggestions?
I would thank you for putting this together.
I know it's a hard thing right now
who has become acquainted with the new administration
and their budget concerns in many places,
so I look at this as kind of an ongoing document
and we'll revise it as appropriate.
It's an action item, may I have a motion to approve?
Second?
Moved and seconded, any objection?
Motion carries, thank you for your word.
Now we have 7E, kind of an interesting item,
a chance to expand our service at somebody else's cost
if I understand that right.
And so I like our senior manager of railroad and real estate services, Monica Coria.
How is this possible?
I'll explain.
Good morning.
Good morning, chair and board members.
I'm here to provide you with an overview of a proposed MetroLink commuter service
from Ventura to Santa Barbara, and to obtain your support and approval
to execute a third party agreement with VCTC and SBKAG.
Here today, we do have Claire Grasty, director of transit.
from VCTC, and we also have Erin Bonfelio,
Director of Multimodel Programs from SB-CAG.
Next slide, please.
SCRA is looking to seek board approval
to authorize our Chief Executive Officer
to execute a third-party agreement with VCTC and SB-CAG
to provide all startup costs to develop and implement
an initial service plan for a commuter train service
from Moore Park to Galita using an existing low sand slot.
The proposed service would operate outside
of the MetroLink budget,
and it's expected to not have any financial impact to SCRA.
Next slide, please.
In 2003 and 2000, sorry,
2023 and 2024, BCTC and SPCAG approach SCRA
to provide a commuter train service
that would help mitigate traffic caused
by the 101 highway construction project.
The proposed service is intended to be temporary
until low sand can fill the morning slot.
Metrolink would operate the morning service
and low sand would handle the afternoon trip.
Potentially the trip would start at Moore Park,
which would depart around 6.30 a.m.
and would get to Galita at 8 a.m.
Once the Metrolink train arrives at Santa Barbara,
it would do a mid-morning return trip
that would integrate with Metrolink service
and would arrive at LA Union Station at approximately 1.30 p.m.
Next slide, please.
At the request of VCTC and SPCAG,
SCRA prepared a cost proposal for developing
and operating an initial service plan.
As part of the third party agreement,
staff followed a very similar format
that was used for the Arrow service,
and we'll ask VCTC and SB CAG
to provide all costs upfront.
Next slide, please.
Here, pending board approval
and approval from our rail partners,
Low Sanding Union Pacific,
we estimate that the service would start tentatively
in the fall of 2025.
We would initiate, for phase one,
in terms of coordination requirements,
we would start negotiation
and develop an operating agreement that would later come
and present to this board for your review and approval.
The second phase of the coordination efforts
would be to start training crew
and also qualifying equipment to operate north of Ventura
within Union Pacific's Santa Barbara subdivision.
And lastly, the phase three of the service implementation
would be to start communication
and outreach of the service with an expected start date
of October 2025.
This is of course assuming we have board approval
and also that we conclude negotiations in a timely fashion
and that our rural partners are in agreement
to advance the service,
because we would highly depend on low sands
since we would be utilizing their slot.
Next slide, please.
For the first few phases in terms of coordination efforts,
we estimate that there'd be a cost of $449,890.
This will include SCRA negotiating
with Low Stand and Union Pacific,
drafting operating agreements
or other interagency agreements that are needed
to give Metrolinx the authority
to operate north of Ventura County.
The proposed costs are expected to be paid up front by VCTC and SPCAG,
which will be split evenly among the two agencies.
Next slide, please.
Financial impact.
As mentioned before, this would operate outside of the Metrolink budget,
and it is expected to not have any impact to the Metrolink overall budget.
current third party agreement would pay for the planning,
the development of the initial service plan,
and future operating agreement would pay
for SCRA's operating costs,
which we would estimate to come back to this board
once we conclude the negotiations
with Losan and Union Pacific.
Next slide, please.
At this time, we request the board
to authorize our chief executive officer
to execute an agreement with SP CAG and VCTC
for SERA to develop and implement an initial service plan
for Ventura, Santa Barbara,
inter-county commuter train service.
Next slide.
This concludes my presentation
and I'm available for any questions the board may have.
Any questions for me?
Thank you.
Please go ahead.
Thank you, Mr. Church, just a couple questions.
First, thank you for the report, good job.
There's not gonna be any financial impact.
Will there be any operational impact to us
as far as staffing and use of our train sets?
No, it's not expected to have any operational impacts
to Metrolink.
Are there gonna have to be any capital assets
acquired to do this?
Or what train sets are they gonna use?
I guess my concern is that I don't wanna invest
in the assets for temporary kind of operation.
If I could, Mr. Chair.
So the reason we're able to do this
is because we have assets available
and low sand does not.
So that's one of the reasons we were a service of choice.
So we have adequate crews and we have adequate equipment.
No other purchases will be necessary.
Director Tremblay, did you have a question?
I didn't have a question.
I had a comment at the appropriate time, Mr. Chair.
Please go ahead.
No, I just fully support this.
We're both VCTC and SBKG have approved this.
I want to thank staff from VCTC and SBKG and Metrolinx
so far for working on this as well as low sand and we are looking forward. You may
or may not realize that SPCAG has modeled we have about 10,000 customers 10,000
actually commuters excuse me that go from Ventura County to Santa Barbara and
so this morning train we're seeking to capture approximately 200 200 of those
and hopefully more so we're enthusiastic about this so if it's
appropriate mr. chair I'd like to make the motion at the appropriate time to thank
we accept the motion vice chair Bergson just just wanted to clarify because
there's no didn't notice a budget item so if we're using our train sets who's
paying for the maintenance that's one question and the second question is are
there any station improvements that are needed I don't know if the stations that
exist today have are long enough for our train sets or do we need to modify is
Is there anything that needs to be done in that regard?
So as part of the initial cost proposal,
it was accounted for any potential cost
associated with the service.
So it would be accounted for in the cost proposal.
Once we execute this third party agreement,
more staff would be able to kind of dive
into the logistics of the implementation,
whether we would need improvements.
at this time, it's not anticipated to be
that any station improvements would be needed
but we will be working on looking into
any potential improvements that are required
to implement the service.
And the maintenance costs, if it's our train sets,
do they, are we keeping track of it
and build them back for that or is there a process?
Yes, that is accounted for in the budget
or it is one of the items that we would be looking at
in terms of kind of segregating to make sure
that we are getting reimbursed for the maintenance
of these, of our vehicles.
The intent is that they will pay for maintenance drivers.
Yes. The train.
We're gonna give the trains at no cost, I presume,
but they will pay the fuel and they will pay the drivers
and they'll pay the maintenance, et cetera.
Or is there also a rental fee?
As part of the cost proposal there was there we did account for a potential rental
Associated with the use of the equipment
That's all I have
Director preciado, I saw your light on and so I mean, I'll start off with a unfavorable with this
Where there'll be a return with specifics or is that just gonna be handled internally afterwards?
So yeah, it's a director press the auto
There'll be a second agreement that comes back before the board that'll have the rest the details
So this was this is the agreement that helped funds our staff time and everything that goes to put together the actual package
And it'll come back a second time for final approval. Thank you for clarification and I'm excited for it. Thank you
We have a motion. Do I have a second?
You got a second as well. Okay, that's great. I think this is a pretty good deal
All those in favor, please indicate by saying aye
opposed none motion carries
Thank you for your presentation and good luck on the continued negotiations
Okay, now we have another item that looks like is I think at no cost to us
we're talking about a
traffic synchronization project to be paid for by the city of Baldwin Park if I read the item, right and
Geraldine Cuevas our senior railroad so engineer will explain all that
morning chair and members of the board a
city of Baldwin Park is undergoing a project that is implementing safety enhancements to the Pacific Avenue crossing an
Amendment for additional funding to the existing
Construction and maintenance agreement is needed to support the signal work at Pacific Avenue
The city of Baldwin Park, who is fully funding this project, approved this amendment to the agreement in November, 2024.
So, next slide.
It is recommended that the board authorize the chief executive officer to execute and negotiate amendment number one to the construction and maintenance agreement between the city of Baldwin Park and the authority.
This will provide an additional $603,000 of city funding increasing the current budget from $3,681,150 to a new total of $4,284,250 for authority support services to the Pacific and Bogart traffic signalization project.
Next slide.
Thank you. Is there any questions?
Any questions from directors?
Seeing none may have a motion moved
moved to second it
any objection
abstentions
Seeing none motion carries
Now we are moving on to allowing a board member to have some travel expense
To be presented by our board clerk Michelle Pena
All right, happy travels. I have a motion a second any objection seeing none. All right
Enjoy the trip
Okay, now we have a
annual comprehensive financial report
and this is
financial stuff that we need to have an expert tell us about so
We have Alex Barber our assistant director of general accounting
Roger Alfo and
old
Partner and feed heaty-baity. Is that how that works? I'm not sure I got that. Oh
Okay
I'm actually here to introduce Kanali Suksam to present the FY24 financial and single audit
required communication.
Thank you for having me participate in the meeting today.
My name is Kanali Suksam, and I'm with I. Bailey if you can look to the next slide.
So we've completed our audit for the fiscal year ending June 30, 2024 and I just wanted
to take some time to identify what our responsibilities were and also the scope of the audit.
So our scope of the audit was to conduct, to perform the audit of the, of Metrolinx
financial system and also to opine on the federal expenditures as part, if you can please
Thank you as part of our financial statement audit we considered Metrolinx internal control and design our audit to perform
Procedures to gain reasonable, but not absolute assurance over Metrolinx financial statements
We also perform tests of compliance with laws regulation contracts those
Which could have a direct and material effect on the determination of the financial statement amounts in addition?
We also reviewed the required supplementary information
to ensure that the information contained in those sections
were consistent with the information
presented in the basic financial statements.
We've issued an unmodified opinion
on the financial statements,
which is the highest level of assurance
over Metrolinx financial statements.
We did note one binding and that was finding
2024-001 related to accounting for unbilled receivables.
For the single audit, we've identified
that there were no instances of non-compliance
and no material weaknesses reported.
We've complied with all ethical requirements
regarding independence.
The significant accounting policies used by Metrolink
are identified in note one to the financial statements
in the current year and fiscal year 2024,
there were no changes in accounting policies
for the current year.
We also identified significant estimates
that were used by management,
and those two estimates were related to
Metrolinx net pension liability
and Metrolinx net OPPO.
Those estimates were sensitive to
the underlying actuarial valuations used,
including the discount rate,
the investment rate of return and for OPEB,
the health care trend rates.
We've noted in notes nine, I'm sorry,
in notes 10 and 11 to the financial statements
that a 1% increase or decrease in the discount rate
could have a material effect
to Metrolinx financial statements.
We did identify a one adjustment
in the amount of $1 million that was proposed
and posted by management to reduce
the accrued receivable balance, revenues,
there were no uncorrected misstatements to report.
I'm happy to report that we had no significant
difficulties or disagreements with management
during the course of the audit,
and that concludes my presentation.
We appreciate the opportunity of serving
as Metrolinx external auditors and with my staff
During the course of the audit, it was a really seamless audit.
With that, that concludes my presentation,
and if there are any questions, I'd love to take any.
Thank you for presentation.
I note in the pile I have a certificate achievement
for excellence in financial reporting given
by the Government Finance Office Association
to the Southern California Regional Rail Authority.
I think that's pretty significant.
Some good work has been done.
I see the lady with the light.
Yes.
You know, in regards to the significance estimates,
you know, I always have a challenge with this
because you talk about pension liability and OPEB,
which we basically have no control.
So when you talk about a 1 percent increase or decrease
of a, I don't even want to call it third party,
but an outside entity that we have no say, no control,
and it's just infuriating.
Every organization I sit on, we have the same challenge.
Is this something that is just flat across the board in all audits and every organization?
They have control and we suffer or can say yay.
So it's just this 1% increase or decrease could be of concern and I just think we have no control over that.
option select percent change in our estimates and so we do provide
estimates to third-party CalPERS to provide us these estimates so there is a
little okay so they're actually doing it that's not internal okay I was thinking
we were doing it how do we make that estimate so that's the that's the
numbers we received but they've been off in the past no they're more often off
than they are on. Okay I just, as long as there's consistency in the you know
across the board and that we all have that same problem because it really is
challenging to have to take a third party and then we have to pay the
consequence whether it's off or not. Okay I just want to make sure, thank you. Any
further questions? Seeing none this is a receiving file item and it's good to see
a clean result. It's very, very good work. So, thank you.
Now, I'll go on to the financial resorts for the first five minutes of year 25, fiscal
year 25. It takes us through November of 2024. And we have Danny Bueno, our senior budget
analyst, will be presenting the item.
Good morning, Mr. Chair and members of the board. I'll be presenting item 7-i. Next slide.
This slide displays ridership compared to the forecast for each of the first five months
of the year.
The red line is the forecast and the columns are the actuals.
As you can see we're over forecast on ridership.
The blue portion of the column is regular ridership while the orange is student adventure
pass ridership.
The chart shows student adventure pass was slightly reduced in November.
Next slide.
Here we see the ridership with continuation of the forecast through the end of the year.
The chart below shows we forecast to be at three million boardings through November,
or a 59 percent recovery, while the actual through November is 3.2 million boardings,
or a 62 percent recovery, which is 181,000 over the forecast.
Student Adventure Pass accounts for 962,000 boardings, making up a third of total ridership.
Next slide.
This slide shows fair box revenue as compared to budget.
The year to date budget is $17.1 million or recovery of 52%, while the actual Fair Box
revenue is $17.4 million or recovery of 53%, exceeding the budget by $300,000.
Year to date, student adventure pass reimbursements are $3.4 million or 20% of total Fair Box
revenue.
Next slide.
As to overall financial results through November before San Clemente, total expenses are under
budget by 13.4 million dollars and overall member agency support is in
surplus by 14 million dollars. Total operating revenue is 27.1 million over
budget by $600,000. Total expense at 121.6 million is 13.4 million under budget
with the categories of administration and services, train operators, fuel and
insurance contributing the majority of that amount. Next slide. Past due
receiveables at November 30th are 50.2 million dollars, the amount of 29 million
from Metro is currently an MOU review. Next slide. The color indicates the type
of receivable with green being working capital fund, blue, member support, orange,
capital and purple other. Next slide. Metrolinx current cash position is 62.8
million dollars which is above the established threshold of 50 million
dollars. Next slide. And we'll shift over to Aero Service now. Next slide. The graph
shows the ridership forecast for each month. The green line is the forecast and
the actuals are represented represented in the blue columns. The chart below
shows forecasts of boardings of 57,000 through November with actuals at 62,000
an increase of 5,000 over the forecast. Student Adventure Pass ridership totals
more than half of the ridership.
Next slide.
Arrow fare box revenue through November is 165,000,
which is twice the forecast amount.
This is a result of the additional amount associated
with the student adventure pass as compared
to the typical average fare per rider for Arrow.
Next slide.
As to financial results, operating revenue is 271,000
or 187,000 over budget, while total expenses are $6.4 million
or 558,000 under budget.
Next slide.
This is an update on the Student Adventure Pass.
Next slide.
This shows student ridership by line
from July through November 2024.
And for comparison shows that ridership
for the same period last year.
Student ridership increased from 533,000 to 995,000
over the whole system with the highest increase
on the Antelope Valley line.
Next slide.
That concludes my report.
May I answer any questions?
Questions from board members?
Seeing none, I like the student adventure pass.
Those are our future writers.
So I think that's all for our good report.
This is a receiving file item.
Any objections?
Seeing none, it is so deemed.
Now we move to our chief executive office's report.
Thank you, Mr. Chair.
Before we go into the slide deck,
I want to make sure that we recognize that these last few weeks have been a real challenge
for Southern California and LA Metro and the service that they provide to Angelino's has,
I can't imagine the level of effort that's had to go into it.
At Metrolink, we're trying to do our part.
We have provided a program where we're providing promotional codes to elected officials and
based organizations for those that have been affected by the fire so that they do have
a mobility option by taking the train.
I think everybody is aware, generally speaking, the fires spared our lines for the most part
with the exception of the Antelope Valley line that had one fire that came up.
The reason we had to seize service or truncate service in Santa Clarita was mainly because
We had first responders in the corridor north of Santa Clarita.
The Metrolink family in this has been impacted.
Thankfully, none of our staff lost their homes.
We have a number of people who live in Los Angeles County,
but we have a number of our staff
whose neighborhoods are gone.
And in some cases, our home is the only one left standing
in a three-block radius.
So it was spared in one way, but traumatic nonetheless
for all of us.
And so we also have people whose family members
have lost their homes.
So it is a, we're soldiering on as a team,
but just it has been something that has affected all of us.
And I think everybody obviously is familiar
with my personal circumstances from a couple of months ago,
which the fires in Los Angeles created a little bit of PTSD,
to say the least.
But we will, Southern Californians are strong
and we'll get through all of this,
but it is, in the moment, it is really testing all of us.
So again, to our LA Metro brethren,
we're here for you guys doing what we can
and we know it's a huge undertaking.
Metro's done the right thing.
I don't know if there's, as of this week,
they were still providing free fares on the systems,
making sure that people had a mobility option.
Okay, let me go into the Chief Executive Officers report.
So big news, of course.
We did communicate with the board, stakeholders, riders,
that we have a schedule update,
primarily on our San Bernardino line,
that will be launched on Monday of next week.
I will not go into all those details,
but I think I've shared with the board
that the San Bernardino line,
as we launched the no optimize schedule,
we simply did not have the track capacity
on that line to run the number of trains we had proposed.
So big changes on the San Bernardino line.
If you're a San Bernardino line user,
please make sure you check your schedules.
I think there's some cool things though that we have.
We're gonna be extending some trains to Montclair
and making other stops that we had not made
with the prior schedule.
I think there's some positives there.
The one casually, unfortunately, is that we had to,
the express train that we were operating
will now be making all stops
between Los Angeles and Redlands,
simply because the train was going too fast
that it would catch up to the trains that were ahead of it.
And so we just, a question of capacity.
Someday, hopefully, we'll fix that.
We still do hope to be able to do that.
On the Ventura County line,
we have some very minor changes
that allow us to make our better connections.
One of the things we really were excited about
with the optimized schedule was the connections at LAUS.
The ability to change trains within a matter of 10
or 15 minutes to go to another line.
And we had some issues on the Ventura County line
that made those transfers, those time transfers,
really not work very well.
So some tweaks have happened there.
Next slide.
February 4th is the first of our free fare days,
transit equity day in 2025.
So please know that on Tuesday, February 4,
we will be celebrating the legacy of Rosa Parks.
That's her birthday.
And one of our favorite days of the year at MetroLink,
MetroLink's customer appreciation day, February 14th,
Valentine's Day.
We look forward to sharing the love,
so to speak, with our riders.
you will receive more information that if you are able to join us at stations
we will have staff at various stations. This is our committee meeting day so if
you happen to be taking the meeting remotely or virtually you know keep an
eye out for a station near you and we'll be able to still do virtual meetings as
well that day. It is an early morning wake-up call though to be out there at
at our station, so would love for you to join us.
You can see how much fun our board members have,
our riders have, and our staff has at this event.
And next slide please.
So this is a, well, this is a hard one.
Mr. Chair, I hope that as we close today's meeting,
we will be able to do so in memory of Mark Murphy.
And this was the picture,
this picture was taken the morning of his passing.
So our hearts go out to Mark's family in this regard.
I think that concludes my report.
I wanna make one real quick comment.
The board may be aware that the California Air Resources
Board had approved an in-use locomotive rule
that was going to mandate zero emission locomotives
for any purchases after 2030.
And we are moving forward
with our tier four locomotive acquisitions.
But for CARB to be able to do that,
they had to request a waiver to a Clean Air Act
and from the US Environmental Protection Agency, US EPA.
Last week, the California Air Resources Board
rescinded their request to US EPA for that waiver.
So, that was done in recognition
of a change in administration
and what was expected to be an unfavorable action
from US EPA on that waiver.
So, they CARB have pulled it back
and CARB will be looking at what they may be able to do
without the authority of the waiver from US EPA.
So stay tuned on that, we'll be tracking it closely
because there may be ability for CARB
to have some levels of enforcement
on that in-use locomotive rule within California
without the waiver.
So stay tuned on that, but because this was a bit
a hot item affected both in-use locomotive as well as zero emission bus is my understanding.
Can you explain how that would affect us either way?
I'm sorry, say that again, Director.
That again.
Can you, sorry.
Can you explain how that would affect us either way?
Well, currently we operate under the CARB's in-use locomotive rule.
we do not replace the remainder of our fleet by 2030, any replacement of a
locomotive after that would have to be zero emission. Our plan is that we over
the next five years replace the last of our 15 tier 2 locomotives with tier 4. We
have substantial grant funding already from the AQMD for that purpose and if
If we are able to do that, we will have a full tier four fleet by 2030, which effectively
grandfathers us all the way till about 2047 or something like that.
So we will be able to take the new equipment and that buys us time, frankly, for this technology
to be developed.
I mean, we are only going to first test the hydrogen to get multiple units.
So there's a lot of unknowns at this point.
So that is how it would affect us.
If we meet our goal of a full tier four fleet by 2030, we effectively get a long term pass
on anything we have to do.
If we don't do that by 2030, they're theoretically CARB could require us by after 2030 to all
locomotives that we purchase be zero emission. We are certainly we have an
adopted climate action plan we do have a vision for zero but the technology has
to catch up and so far we've not seen that so 2030 is a pretty critical date
and why we need to acquired additional. During our process of moving to Tier 4
we have ordered and has taken long past the expectation. Does that come into
account at all? Because we may order, pay for whatever, but if they don't deliver,
is it the actual delivery date? Let me research that and I think one of the
questions that may come out in all of this again is what CARB has been trying
to do is they're, CARB's stated target was railroads that have far more locomotives
than what we have are really what they were trying to pursue.
We are the only commuter railroad left in California, I believe this is the, and some
will have to correct me, but I believe we're the only one that still has tier two locomotives
that could still be in service in 2030.
So if the rule goes into effect, there is exactly one entity that is going to be impacted
by it, and that's us.
So as we did with CARB when they were working on the in-use locomotive two years ago, we
negotiated strongly because they wanted to allow us to have our tier four locomotives
in that biased time.
The fact of the matter is that if the freight railroads
are not part of the equation,
where is the manufacturing sector going to be
as far as having the reason to go out and build this stuff?
They're not going to go out and put that together
just for Metrolink, which is what effectively
would be having to happen.
So I think there's a lot of conversation yet to be had
and CARB has been, they certainly have a mission,
but they have also been receptive to our arguments
that we're prepared to go to zero, but we can't, to zero emission,
but we can't force the manufacturing sector in that direction
if there's not the critical mass on the market side.
Thank you.
Certainly.
Any further questions or comments?
That's a fascinating topic, and when we come to a retreat,
if we can reschedule that, that'd be a good one to discuss further.
All right. Any board member have a comment, questions?
Something you want to schedule? Yes, Mr. Tremblay.
Thank you, Mr. Chair. Three quick things.
First of all, I want to know what kind of candy Director O'Connor was passing
because the smiles on everyone's faces was wonderful.
Chocolate.
Hopefully I can get that kind of candy if I'm going to do the customer appreciation day on February 14th.
Secondly, it's very appropriate to close
in memory of Director Murphy and the privilege of serving,
like all of us, the privilege of serving with Mark,
and I will miss him.
Thirdly, as a request from both Director Engler and myself,
and that is I know that we have periodic reports
on right-of-way and trespasser strikes
and what we are doing,
what Metrolinq has been affirmatively doing.
We've taken great steps the last few years on that.
I'm hoping that at either the next meeting
or a soon to be board meeting,
we can make that an actual agenda item
just to brief the board on the current status of efforts
to reduce trespasser strikes.
And specifically, what is our messaging out to folks?
Not only from, well, the messaging,
the law enforcement is there
and they're doing a wonderful job,
but what is also our messaging out to folks
to stay off the track?
So that would be my request, Mr. Chair,
for a future agenda item.
Thank you.
The direction is so noted and I'm sure we'll get a report in due course any other questions suggestions
Then give my comments which will be brief first. I'd like to recognize our director Catherine Barger
share her area as a member of the Los Angeles Board of Supervisors includes the Altadena area and
She's been working diligently
to help the people impacted by the fires.
And it's night and day with her.
And I'm very glad to have her working on it.
She has maybe the only connector with the LA board
with the new administration in Washington.
So she's very important in this effort.
And I want to recognize her for her efforts.
And then we will be rescheduling
our annual board retreat, hopefully in March,
but we need to get past all the fires and other things,
and we'll learn more about the financial issues too,
by then, hopefully the direction of the new administration
and what's happening in the budget in Sacramento
and our own issues.
And so with that, I would like to close the meeting
in memory of Mark Murphy.
I got to know Mark, he was a former chair
of the Orange County Transportation Agency,
who I represent as well.
And I enjoyed a conversation with him immensely,
a very bright, good-purposed person.
So we're gonna close the meeting in memory of Mark Murphy.
And with that, we're adjourned to our next meeting.
Thank you.