February 28, 2025 · Board of Directors
All Consent Calendar items are listed at the end of the agenda.
7.A Title VI Public Hearing for October 2024 Schedule Change In October 2024, the Authority launched a systemwide schedule change which offers increased frequency, better connections, and more service during weekdays. In January 2025, the Authority adjusted the schedules for the San Bernardino, Ventura, and Arrow Lines to address on-time performance challenges and align services across multiple lines. Federal rail service guidelines require transit agencies to conduct a service equity analysis and public outreach effort for a major service change which remains in effect for more than six months. Executive Committee recommended (5-0) that the Board approve the initiation of the Title VI public comment process for the continuation of the systemwide schedule change launched in October 2024, as adjusted in January 2025. Title VI study and outreach costs are included in the Adopted Operating Budget for FY2024-25. 7.B February Legislative Update Staff provides a regular monthly update on current legislative affairs. Receive and file. 7.C Financial Results for the First Six Months of FY25 - December 2024 Ridership, Revenue, and Operating Results "Metrolink Reimagined" is the Metrolink term for the transition from commuter rail-based service to a regional provider of general transport. Initiatives designed to realize that transition require timely review of Ridership, Revenue, and Financial Operating Performance to provide assessment of the effectiveness of our efforts. Primary among these initiatives are the optimized services we began providing on October 21, 2024. Board of Directors Meeting February 28, 2025 3 This report covers monthly reporting on Ridership, Revenue, and Financial Operating Performance for the six months ended December 31, 2024. Receive and file. 7.D New Code of Federal Regulations (CFR) for Qualification and Certification of Dispatchers (Part 245) and Certification of Signal Employees (Part 246) On May 21,2024, The Federal Railroad Administration announced to SCRRA and all other railroads new regulations to develop FRA-approved programs for certifying individuals who perform dispatching tasks and signal employees who work on signal systems and signal-related technology on their networks. Pursuant to this regulation, railroads are required to have formal processes for training dispatchers and signal employees, as well as verifying that each dispatcher and signal employee has the requisite knowledge, skills, safety record, and abilities to safely perform assigned tasks mandated by railroad rules and safety standards and Federal laws and regulations, prior to certification. Authority promptly started assessing the regulation requirements, including financial and human resources, necessary to comply with the regulations. Under this regulation, only the railroad can certify and recertify dispatchers and signal employees. The railroad's certification programs will encompass not only direct railroad employees but also contractors that perform dispatching tasks and/or signal employees who work on signal systems and signal-related technology on their networks. Receive and file. The administration of both certification programs will have a financial impact on the Authority. Staff is working to identify funding to fulfill the initial requirements of the regulation so that the Authority is compliant by September 17, 2025. The Operations department will continue to coordinate with Finance, Program Delivery, Human Resources, IDTS, Safety, and Legal departments on the budgetary elements associated with these new federal regulations. 7.E 2024 Year-End System Safety, Security, and Compliance Update System Safety, Security, and Compliance is providing a year-end update on safety key metrics. Receive and file.
Authority Update
Board of Directors Meeting February 28, 2025 4
11.A Approval of Meeting Minutes - January 24, 2025 Regular Board Meeting It is recommended that the Board approve the Minutes of the January 24, 2025 Regular Board Meeting. 11.B Quarterly Compensation Report - 1st and 2nd Quarter of Fiscal Year 2025 - July 1, 2024 through December 31, 2024 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. 11.C Assembly Bill 1234 Meetings Attended by Members of the Board of Directors A report on meetings attended by members of the Board of Directors is provided in compliance with the Authority’s policies and "Assembly Bill 1234" (AB 1234) (Government Code Section 53232 et seq). Receive and file. 11.D Adoption of Investment Policy 2025 California Government Code Section 53607 provides investing authority to the governing body and may be delegated to the Authority’s Treasurer for one-year periods. Under the Authority’s executive management structure, the Chief Financial Officer effectively functions as the Treasurer with approval of the designation by the Board. This item is to recommend the approval of said delegation for an additional year. In addition, the Authority’s Investment Policy (Policy) requires that the Policy is reviewed and approved annually by its Board of Directors. The Policy establishes guidelines under which the Authority’s funds can be invested with the objectives of ensuring safety of principal, availability of funds to meet current and future expenditures and achieving a reasonable rate of return on its cash and investments. Audit and Finance Committee recommended (5-0) that the Board approve the proposed Investment Policy FIN-3.1 annual revision and the designation of the Chief Financial Officer as Treasurer for an additional year. There is no budgetary impact as a result of this report. 11.E FY2024-25 Preliminary Quarterly Investment Report - Quarter Ended December 31, 2024 Board of Directors Meeting February 28, 2025 5 The Authority’s Annual Investment Policy requires the Treasurer to make a quarterly investment report to the Board of Directors. Section 53646 of the California Government Code encourages local agencies to file this report and provides requirements for report content and disclosures. This report is for the quarter ended December 31, 2024, and contains estimated information published prior to the conclusion of the Authority's fiscal year close and is subject to adjustment. Receive and file. 11.F FY2024-25 Quarterly Accounts Receivable Status Report - Quarter Ended December 31, 2024 This report presents an update on the Authority’s Accounts Receivable for the quarter ended December 31, 2024. The report covers outstanding receivables, unbilled balances and provides a status related to billing and collection efforts. Receive and file. 11.G FY2024-25 Quarterly Fuel Purchase Program Update - Quarter Ending December 31, 2024 Staff is providing an update on the Authority's Fuel Purchase Program for the quarter ended December 31, 2024. Receive and file. 11.H Internal Audit Department Quarterly Update for Q2 FY2025 The Internal Audit Department (Internal Audit) provides quarterly updates on internal and external audits and other activities. This item represents the second quarter of FY 2025 (September 30, 2024, to December 31, 2024). Receive and file. 11.I PMO Module Performance Audit (2024-14-IA) The Program Management Office Module Performance Audit (#2024-14-IA) is completed as part of our 2024 Annual Internal Audit Plan approved by the Board of Directors. Receive and file. 11.J Corrective Action Status Update - Second Quarter Ended December 31, 2024 The Internal Audit Department (Internal Audit) provides the Board with a quarterly report on the status of the corrective actions of prior audits. Receive and file. Board of Directors Meeting February 28, 2025 6 11.K Grants Quarterly Update - 2nd Quarter, Fiscal Year 2025 Staff is providing an update of grant acquisition, reprogramming and closeout activity for the period of October 1, 2024 to December 31, 2024. Receive and file. 11.L Contract Amendment for Contract No H1674-21 Trapeze Software Group for Maintenance of Way (MOW) Signals, Communication & Signal (C&S) Help Desk migration technical support and State of Good Repair/Capital Planning Module implementation in the Enterprise Asset Management (EAM) Optimization Project The Authority needs additional technical support to complete the final implementation phases of the EAM system for the MOW Signals & C&S Help Desk disciplines and the State of Good Repair (SGR)/Capital Planning Module. The level of effort and complexity regarding the migration of MOW disciplines into Trapeze EAM system was greatly underestimated at the onset of the project due to a large number of assets and variabilities in components, inspections, and regulatory requirements. Leveraging additional technical support will allow the Authority to ensure the remaining MOW disciplines are configured and migrated in a matter that is conducive for longevity and asset visibility, as well as set up the foundation for the State of Good Repair/Capital Planning Module. This work is part of an agency-wide effort to consolidate existing siloed systems into a single system of record for all the agency's critical assets. Once this system is fully adopted, it will improve staff's ability to capture asset condition data, monitor asset performance, identify potential risks, and to prioritize future rehabilitation and new capital investments. Contracts, Operations, Maintenance, and Safety Committee recommended (4-0) the Board authorize the Chief Executive Officer approve amendment to extend Contract No. H1674-21 for additional technical support in Maintenance of Way Signals, C&S Help Desk migration support and State of Good Repair/Capital Planning Module Implementation to December 31, 2026, and increase contract authority by $803,907 to a new not-to-exceed amount of $3,290,569.00. The amount of $803,907 requested for this contract amendment is included in the Adopted Capital Program budget for FY2023-24. 11.M Purchase Order No. PO978-25 - Air Brake Components and Overhaul Services - Recommendation to Award - Knorr Brake Corporation The Authority's Materials Management Department requires an agreement with Knorr Brake Corporation to allow for the purchasing of new brake calipers, manifolds, and other air brake components and as needed brake overhaul services. These items are needed to perform preventive maintenance as required by the FRA on the air brake system of our DMU fleet. Board of Directors Meeting February 28, 2025 7 Contracts, Operations, Maintenance, and Safety Committee recommended (4-0) that the Board authorize the Chief Executive Officer (CEO) to award Purchase Order No. PO978-25 to Knorr Brake Corporation for the purchase of as needed new Air Brake Components and Overhaul Services for a two-year term and an estimated not-to-exceed authority of $1,500,000. The amount for which contract authority is being requested will be included in the proposed Arrow operating budgets for FY26 and FY27 in the following amounts: $903,642 in FY26 and $596,358 in FY27. 11.N Quarterly Report of Contracts Awarded and Third-Party Agreements Executed Under the Chief Executive Officer's Authority The Board of Directors approved the Authority's revised Procurement and Contracting Policies (Revised Policies) on November 8, 2019. Section 3 of the Revised Policies requires the Chief Executive Officer (CEO) to provide a quarterly report to the Board with a list of contracts awarded above $250,000 and under the CEO's contract award authority of $500,000. Receive and file.
Board of Directors Meeting February 28, 2025 8 ITEM 7.A metrolinktrains.com/meeting ITEM ID: 2025-143-0 TRANSMITTAL DATE: February 21, 2025 MEETING DATE: February 28, 2025 TO: Board of Directors FROM: Paul Hubler, Chief Strategy Officer SUBJECT: Title VI Public Hearing for October 2024 Schedule Change Issue In October 2024, the Authority launched a systemwide schedule change which offers increased frequency, better connections, and more service during weekdays. In January 2025, the Authority adjusted the schedules for the San Bernardino, Ventura, and Arrow Lines to address on-time performance challenges and align services across multiple lines. Federal rail service guidelines require transit agencies to conduct a service equity analysis and public outreach effort for a major service change which remains in effect for more than six months. Recommendation Executive Committee recommended (5-0) that the Board approve the initiation of the Title VI public comment process for the continuation of the systemwide schedule change launched in October 2024, as adjusted in January 2025. Strategic Commitment This report aligns with the Strategic Business Plan commitment of: 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. The public outreach and equity analysis ensure that the schedule change launched in October 2024, as adjusted in January 2025, meet Title VI equity requirements. 9 Background As a recipient of Federal funding, the Authority is required to conduct public outreach for all major service changes. During the public outreach, staff will seek public feedback on the continuation of the schedule change launched in October 2024, as adjusted in January 2025. Discussion On October 21, 2024 the Authority launched a systemwide schedule change which offers increased frequency, better connections, and more service during weekdays. The new schedule focused on service growth in the current markets Metrolink serves by: Leveling train schedules to serve off-peak markets, thus enabling Metrolink to serve customers throughout the day; and Improving transfer opportunities between Lines at L.A. Union Station. On January 27, 2025, the Authority adjusted its train schedules on the San Bernardino, Ventura, and Arrow Lines to improve service reliability and align services across multiple lines. These adjustments ensure better operational flow and more dependable service across our network, enhancing customer experience for Metrolink riders. Service Plan On October 21, 2024, the Authority launched a systemwide schedule change which resulted in 32 new weekday trains, for a new total of 178 weekday trains spread across the day, providing more mid-day options and service into the evening. All 178 trains also operate five car-sets. On January 27, 2025, the Authority adjusted the train schedules for the San Bernardino, Ventura, and Arrow Lines to address on-time performance issues, as well as enhance train connections between lines. Taken together, the new schedule promotes optimized transfer opportunities through “pulse” scheduling across the system. The number of connections available throughout the day has increased by more than 300%, with more than 225 daily connections (up from 67) through L.A. Union Station, and most customers will experience wait periods of just 10-20 minutes. Public Participation Plan After initiating the public comment period, staff will notify the community of the schedule expansion. We will encourage the public to provide comments by distributing a Limited English Proficiency (LEP) news release, creating a webpage with the attached survey, and launching electronic blasts (E- blast), social media, and changeable message boards with relevant project information. The staff will hold a virtual bilingual community workshop on March 26, 2025 to explain the schedule expansion; we will remind community members that their input is welcome and essential. All comments will be gathered and provided to the Board for review. Equity Analysis As the operator of Metrolink service, the Authority is required to conduct a service equity analysis in compliance with Federal Title VI requirements (FTA C 4702.1B). The equity analysis is intended to determine if the expansion of service will result in disparate impacts for minority populations or pose a disproportionate burden to low-income populations. 10 Staff is now seeking approval from the Board to initiate the Title VI equity analysis and public outreach for the service expansion. Budget Impact Title VI study and outreach costs are included in the Adopted Operating Budget for FY2024- 25. Next Steps The full results of the service equity analysis will be presented to the Board together with the results of the public outreach effort during the April Board meeting. Suggested project timeline of activities includes: Board approval of the initiation of the Public Outreach process: February 28, 2025 Creation of e-comment and survey on Metrolink website: February 28, 2025 Public Meeting regarding the schedule expansion: March 26, 2025 E-comments due by April 15, 2025 Staff presents result of public outreach and equity analysis to the Board: April 25, 2025 The above dates are subject to change. Prepared by: Brian Jacob, Planning Manager II Sylvia Novoa, Public Affairs Manager Henning Eichler, Senior Manager, Market Insights and Analytics Approved by: Paul Hubler, Chief Strategy Officer Attachment(s) Presentation - Title VI Analysis and Public Outreach for Oct Schedule Change 11 Title VI Public Outreach for October 2024 Schedule Change 12 Background • Launched a systemwide schedule change on October 21, 2024 • Increased frequency; • Offered better connections; and • Adjusted schedules on Bernardino, Ventura, and Arrow Lines to address on-time performance challenges and align services across multiple lines. 13 1 Title VI Analysis and Public Outreach • The rail schedule expansion falls under the FTA Title VI requirement for transit agencies to conduct equity analysis and public outreach for all major service changes. • Public Outreach Plan: • Provide opportunity for public comments online starting February 28, 2025. • Electronic station message boards informing public of community meeting. • Email notification regarding public outreach meeting. • Posting meeting notices, information and online meeting on social media: • Notices will be posted in LEP languages (Limited English Proficiency) • Public meetings will be held in English and Spanish • Language translator will be provided if requested with 72-hours advance notice • Public meeting on March 26, 2025. 142 Next Steps • Public Meeting regarding the schedule expansion on March 26, 2025 • E-comments due by April 15, 2025 • Staff presents result of public outreach and equity analysis to the Board on April 25, 2025 15 3 Thank you. 16 ITEM 7.B metrolinktrains.com/meeting ITEM ID: 2025-128-0 TRANSMITTAL DATE: February 21, 2025 MEETING DATE: February 28, 2025 TO: Board of Directors FROM: Paul Hubler, Chief Strategy Officer SUBJECT: February Legislative Update Issue Staff provides a regular monthly 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. 17 Background Staff continues to engage with community, local, state, and federal stakeholders concerning Metrolink service and relevant policy initiatives. Discussion Local Community and Government Relations staff, in coordination with the Customer Experience and Fare Collections departments, developed a program to offer free ride passes to those displaced by the fires. As of January 17, 145 round-trip promo card passes have been sent to community-based organizations (CBOs) and elected officials to distribute to their constituents and community members in need. Additionally, staff distributed approximately 300 passes to organizations and residents at a donation site in Santa Anita on January 17. Community Relations staff will be conducting outreach in accordance with Title VI requirements for the Metrolink Reimagined schedule change. The process is scheduled to start on February 28, 2025 with a community meeting scheduled for March 26, 2025. A public hearing culminating the process would occur at the April 25, 2025 Board of Directors meeting. Working in conjunction with the Safety team the Community Relations Team continues to conduct follow up to all schools along the San Bernardino line informing them of the opportunity to participate in a safety briefing that will provide a free trip to the San Bernardino Depot station. This free trip will include a docent-led tour of the historic station, an age- appropriate safety presentation, and a free return trip to their station of origin. State CARB Withdraws Request for EPA Waiver Needed to Enforce In-Use Locomotive Rule The California Air Resources Board (CARB) withdrew its request for a waiver from the U.S. Environmental Protection Agency that, if issued, would have authorized state regulation of passenger and freight locomotive emissions. CARB’s April 2023 In-Use Locomotive regulation requires Metrolink and other freight and passenger rail operators in California to upgrade locomotive technologies to reduce criteria pollutants by certain deadlines. Without the federal waiver, key elements of the regulation are likely not enforceable. Staff will continue to monitor these developments. Committee Assignments Announced Sacramento statehouse leaders announced new committee assignments in January. Assemblymember Lori D. Wilson (District 11) will retain her position as Chair of the State Assembly Transportation Committee and Laurie Davies (District 74) will continue serving as Vice Chair of the Transportation Committee. Assemblymembers Juan Carrillo (District 39), John Harabedian (District 41), Dr. Corey Jackson (District 60), Tom Lackey (District 34), each of whom represent a portion of Metrolink’s system, will serve on the Assembly Transportation Committee. On the Senate side, Dave Cortese (District 15) will serve as the Chair of the Senate Transportation Committee. Senators Bob Archuleta (District 30), Catherine Blakespear (District 38), Sabrina Cervantes (District 31), Monique Limon (District 21), Caroline Menjivar (District 20), Kelly Seyarto (District 32), Thomas Umberg (District 34), and Suzette Martinez 18 Valladares (District 23) each represent a portion of Metrolink's system and will serve on the Senate Transportation Committee. Governor’s Proposed Budget Honors Previous Transit Commitments On January 10, Governor Newsom released his FY 2025-26 Proposed Budget and projected a modest $363 million surplus. The one-time funding provided by SB 125 for transit capital and operations remains intact in the Governor’s proposal, with the modified appropriation timeline agreed to in last year’s Budget Act. For the FY 2025-2026 year, $1 billion from the Transit and Intercity Rail Capital Program (TIRCP) will be available, according to the modified appropriation schedule. The FY 2025-26 Proposed Budget also requests that the Legislature join the Governor in considering extending the cap-and-trade program beyond 2030, noting “extension sooner could provide greater certainty and attract stable investment.” Bill to Plus Up Transit Funding To Be Introduced Senator Scott Weiner (District 11) intends to introduce legislation that would provide an additional $2 billion from the General Fund to transit providers across the state. The funding would be distributed through the existing TIRCP formula and eligible uses would include capital and operations. Federal
The 119th Congress convened on January 3 with Republicans maintaining control of the U.S. House and assuming the majority in the U.S. Senate. Representatives Sam Graves (R-MO) and Rick Larsen retained their positions as House Transportation & Infrastructure Chairman and Ranking Member, respectively. The Subcommittee on Railroads, Pipelines, and Hazardous Materials is under new leadership, with Representative Daniel Webster (R-FL) assuming the chairmanship and Dina Titus (D-NV) taking over the ranking member slot. Newly elected Congresswoman Laura Friedman (D-CA), who represents the Burbank and Glendale portions of the Metrolink system, is a member of the Railroad Subcommittee. In the Senate, transportation policy matters fall into the jurisdiction of several committees. Senators Alex Padilla (D-CA) and Adam Schiff (D-CA) were both named to the Committee on Environment and Public Works, the primary committee responsible for drafting the next surface transportation authorization bill. USDOT Leadership Positions Begin to be Filled In November, President-elect Trump announced his intent to nominate Sean Duffy to serve as his Secretary of Transportation. Mr. Duffy, a former Congressman from Wisconsin, was approved by the Senate Commerce Committee by a vote of 28-0 on January 22. His nomination is expected to be considered by the full Senate in late January or early February. President Trump also announced his intent to nominate David Fink to serve as Federal Railroad Administration (FRA) Administrator. Mr. Fink is the former President of Pan Am Railways. He is awaiting confirmation. Reauthorization Begins House Transportation & Infrastructure (T&I) Chairman Sam Graves (R-MO) convened a hearing to kickstart discussions on reauthorization of the next surface transportation bill. The current authorization, the Infrastructure Investment & Jobs Act (IIJA), is set to expire in September 2026. The T&I hearing was held on January 15 and Congressman Graves indicated developing a successor to the IIJA would be one of his committee’s top priorities in 19 the coming year. It is unclear the extent to which IIJA investment levels will be maintained, whether new funding sources will be identified, or if funding will be distributed primarily through formula or competitive grant processes. Prepared by: Jeffrey Dunn, Director, Government and Community Relations Anna Denecke, Senior Manager, Government Relations Sylvia Novoa, Manager, Public Affairs Julie Nieto, Management Analyst II Grayson Hahn, Grad on Career Track Approved by: Paul Hubler, Chief Strategy Officer Attachment(s) Appendix A - February 2025 Bill Matrix 20 Appendix A: Legislative Matrix Bill Number Bill Status Action Federal - - - State Climate Related Bills - - - Project Delivery and Utilities Related Bills Assembly Bill 35 (Alvarez): Would provide May be heard in Monitor for limited CEQA review of an application committee January 2 for a discretionary permit or authorization for a clean hydrogen transportation project by requiring the application to be reviewed through a clean hydrogen environmental assessment and would require the lead agency to determine whether to approve the clean hydrogen environmental assessment and issue a discretionary permit or authorization for the project no later than 270 days after the application for the project is deemed complete. Senate Bill 30 (Cortese): Would state the May be acted upon Monitor intent of the Legislature to enact on or after January 2 subsequent legislation to restrict the resale of decommissioned diesel trains and rolling stock for continued use. Senate Bill 79 (Wiener): Would make May be acted upon Monitor housing more affordable for California on or after February families, reduce greenhouse gas 15 emissions, and enhance public transit systems by, among other things, requiring the upzoning of land near rail stations and rapid bus lines to encourage transit- oriented development. Senate Bill 71 (Wiener): Would exempt May be acted upon Monitor from the requirements of CEQA a public on or after February project for the improvement of bus rapid 14. transit, bus, or light rail service, including the maintenance, public projects for the improvement, institution, or increase of shuttles and ferries, and for the maintenance, construction, or rehabilitation of stops which will be exclusively used by zero-emission, near- 21 zero-emission, low oxide of nitrogen engine, compressed natural gas fuel, fuel cell, or hybrid powertrain buses, shuttles, ferries, or light rail vehicles, as provided. The bill would exempt a project carried out by a public transit agency conducted in compliance with specified regulations of the State Air Resources Board relating to commercial harbor craft and in-use locomotives. Transit Bills - - - 22 ITEM 7.C metrolinktrains.com/meeting ITEM ID: 2025-132-0 TRANSMITTAL DATE: February 21, 2025 MEETING DATE: February 28, 2025 TO: Board of Directors FROM: Arnold Hackett, Chief Financial Officer SUBJECT: Financial Results for the First Six Months of FY25 - December 2024 Ridership, Revenue, and Operating Results Issue "Metrolink Reimagined" is the Metrolink term for the transition from commuter rail-based service to a regional provider of general transport. Initiatives designed to realize that transition require timely review of Ridership, Revenue, and Financial Operating Performance to provide assessment of the effectiveness of our efforts. Primary among these initiatives are the optimized services we began providing on October 21, 2024. This report covers monthly reporting on Ridership, Revenue, and Financial Operating Performance for the six months ended December 31, 2024. Recommendation Receive and file. Strategic Commitment This report aligns with the Strategic Business Plan commitments of: Modernizing Business Practices: We will improve our operational efficiency through transparency, objective metrics and streamlined governance, reducing over-reliance on Member support while bringing our system into a state of good repair and investing in the development of our employees. Providing current and accurate information to our Board enhances their oversight, and ability to provide direction based on factual data. 23 Customers Are Our Business: We respect and value our customers, putting them at the heart of all we do, and work hard to attract and retain new customers by understanding their needs and finding new and innovative ways to bring them on board. Our close monitoring of our ridership is a reflection of our unflagging concern for ridership trends, and to ensure our actions are serving their needs. Background This item will report on the ridership and revenue recovery as measured against FY2018-19 (FY19) results, which was the last full year of operations pre-pandemic. Comparisons and variance are shown between the forecast or budget and actual recovery. Comparisons will also be shown between the Ridership, Revenue and Expenses as adopted in the FY25 Budget and actual performance. For FY25, Staff continued its engagement with Sperry Capital/KPMG to lend assistance and additional expertise to our ridership forecasting. Sperry Capital/KPMG provided an analysis to determine the change in ridership and revenue which can be expected as a result of our Optimized Service Schedule. The Farebox Revenue in the FY25 Budget is based on the forecast provided by KPMG/Sperry Capital on February 21, 2024. Ridership and Revenue from the Student Adventure Pass Pilot Program are not included in the FY25 Budgeted Revenue. Operating Statement Comparisons On June 28, 2024, the SCRRA Board of Directors adopted the FY25 Operating Budget for Metrolink. The FY25 Operating Budget reflected Operating Revenue of $68.0M, Expense of $332.1M, and Member Agency Support of $264.0M. On June 28, 2024, the SCRRA Board of Directors also adopted the FY25 Operating Budget for Arrow Service. The FY25 Arrow Service Budget reflects Operating Revenue of $212K, Expense of $15.7M, and Member Agency Support of $15.5M. On September 13, 2024, the SCRRA Board approved an amendment to the FY25 Arrow Service Budget to adjust for a new equipment maintenance agreement. The amendment added $1.1M in Mobilization expense and $0.7 in equipment maintenance expense. The amended FY25 Arrow Service budget now has Operating Revenue of $0.2M, Expense of $17.5M, and Support of $17.3M. Discussion Ridership For the six months ended December 31, 2024, ridership recovery was forecast at a recovery of 59% or 3.5M boardings, while the actual recovery through December is 62% or 3.7M 24 boardings. Total ridership generated by the Student Adventure Pass Pilot program through December was 1.2M. Revenue Through the first six months of FY25, the Authority's farebox revenue actuals exceeded the revenue as budgeted. Farebox revenue is budgeted at $20.0M or a 52% recovery, while the actual farebox revenue is $20.6M, a 53% recovery, over budget by $0.6M. These revenue amounts include the Student Adventure Pass Pilot program. The total amount of revenue from the Student Adventure Pass Pilot program for the six months ended December is $4.1M. Operating Results The Metrolink Operating Statement for the six months ended December 2024 is based on accruals not actuals. Operating Revenue is $32.8M, over budget by $1.4M. Expenses (excluding un-utilized Mobilization) are $145.9M, below budget by $15.3M. Support required is $114.2M, below budget by $16.7M. Cash Issues Outstanding Receivables As of December 31, 2024, Metrolink had $39.2M of past due receivables outstanding. The majority of the past due amount (84%) is owed for the Working Capital Fund, Member Agency Support is 8%. Staff is in the final stages of approving an agreement for the Working Capital Fund monies. Available Cash In December 2024, cash available is $79.9M, which exceeds the $50M threshold established by the Board. Arrow Service Ridership For the first six months of FY25 ridership was forecasted at 68K boardings, while the actual ridership is 74K boardings. Total ridership generated by the Student Adventure Pass Pilot program though the first six months was 39K boardings. Revenue Through December 2024, Arrow Service farebox revenue was budgeted at $96K. Actual farebox revenue was $195K, above budget by $100K. This revenue includes $101K generated by the Student Adventure Pass Pilot program. Operating Results 25 The Arrow Service December 2024 Operating Statement is based on accruals not actuals. Total Operating Revenue is $323K, above budget by $222K. Expenses are $7.7M, below budget by $0.8M. Support required is $7.4M, below budget by $1.0M. Student Adventure Pass Pilot Program Total Student/Youth ridership was 1,192,638 for the six (6) month period July - December 2024, with the modes of purchase being 42% TVD, 58% Mobile App. Next Steps Staff will continue to report on Ridership, Revenue and Financial results monthly. Prepared by: Christine J. Wilson, Assistant Director, Finance Approved by: Arnold Hackett, Chief Financial Officer Attachment(s) Attachment A - Metrolink Operating Statement December 2024 Attachment B - Arrow Operating Statement December 2024 Presentation - December 2024 Financial Results 26 ATTACHMENT A SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY PRELIMINARY OPERATING STATEMENT FOR THE SIX MONTHS ENDING DECEMBER 31, 2024 FY25 FY25 VARIANCE FROM BUDGET BUDGET ACTUAL OVER/(UNDER) Operating Revenue AMOUNT % Farebox Revenue 20,039,075 16,569,352 (3,469,724) (17.31%) SB Line Fare Reduction 199,606 166,422 (33,183) (16.62%) Mobility 4 All 0 390,508 390,508 0 Student Adventure Pass 0 4,077,447 4,077,447 0 Other Train Subsidies 1,282,711 1,304,960 22,249 1.73% Special Trains 0 39,200 39,200 0 Subtotal Pro Forma Farebox 21,521,392 22,547,889 1,026,497 4.77% Dispatching 1,103,496 1,391,812 288,316 26.13% Other Revenues 2,176,626 2,179,772 3,146 0.14% MOW Revenues 6,563,340 6,693,141 129,801 1.98% Total Operating Revenues 31,364,854 32,812,614 1,447,760 4.62% Student Adventure Pass Member Support 3,211,300 3,211,300 0 0.00% Operations & Services Train Operators 23,888,106 21,428,142 (2,459,964) (10.30%) Train Dispatch 2,828,718 2,800,795 (27,923) (0.99%) Equipment Maintenance 15,838,174 15,535,180 (302,994) (1.91%) Materials 6,198,740 6,740,169 541,429 8.73% Fuel 16,646,586 14,207,209 (2,439,377) (14.65%) Non-Sched Rolling Stock Repairs 75,000 6,048 (68,952) (91.94%) Operating Facilities Maintenance 1,286,903 973,538 (313,365) (24.35%) Other Operating Train Services 486,636 263,870 (222,766) (45.78%) Security - LA Sheriffs 6,392,394 5,969,946 (422,448) (6.61%) Security - Guards 2,669,946 2,593,213 (76,733) (2.87%) Supplemental Security 94,508 0 (94,508) (100.00%) Public Safety Program 26,670 22,875 (3,795) (14.23%) Passenger Relations 990,434 909,931 (80,503) (8.13%) TVM Maint/Revenue Collection 2,283,942 2,374,223 90,281 3.95% Marketing 1,494,830 949,805 (545,025) (36.46%) Media & External Communications 151,926 49,710 (102,216) (67.28%) Utilities / Leases 1,352,034 1,173,755 (178,279) (13.19%) Transfers to Other Operators 1,307,394 1,572,555 265,161 20.28% Amtrak Transfers 335,346 327,901 (7,445) (2.22%) Station Maintenance 3,132,936 2,317,240 (815,697) (26.04%) Rail Agreements 3,460,782 3,387,811 (72,971) (2.11%) Special Trains 266,736 224,178 (42,558) (15.96%) Subtotal Operations & Services 91,208,741 83,828,093 (7,380,647) (8.09%) Maintenance-of-Way MoW - Line Segments 22,447,776 22,815,508 367,732 1.64% MoW Labor & Benefits 2,265,870 2,073,497 (192,373) (8.49%) Overhead MoW Expenses 2,203,571 1,474,462 (729,109) (33.09%) MoW - Extraordinary Maintenance 320,142 251,888 (68,254) (21.32%) Subtotal Maintenance-of-Way 27,237,359 26,615,355 (622,004) (2.28%) Administration & Services Ops Salaries & Benefits 8,631,543 8,835,661 204,118 2.36% Ops Non-Labor Expenses 5,942,180 4,097,044 (1,845,136) (31.05%) Indirect Administrative Expenses 12,262,724 8,686,815 (3,575,909) (29.16%) Ops Professional Services 1,325,640 1,337,805 12,165 0.92% Subtotal Administration & Services 28,162,087 22,957,325 (5,204,761) (18.48%) Contingency 24,637 2,500 (22,137) (89.85%) Total Operating Expenses 146,632,824 136,614,573 (10,018,250) (6.83%) Insurance Expense (Recoveries) Liability/Property/Auto/Misc 9,327,468 8,108,199 (1,219,269) (13.07%) Net Claims / SI 920,376 167,172 (753,204) (81.84%) Claims Administration 1,097,772 994,648 (103,124) (9.39%) Subtotal Insurance Expense (Recoveries) 11,345,616 9,270,019 (2,075,597) (18.29%) Total Expenses 161,189,740 145,884,592 (15,305,147) (9.50%) Mini-Bundle Mobilization 5,169,216 1,124,258 (4,044,958) (78.25%) Total Expenses with Mobilization 166,358,956 147,008,850 (19,350,105) (11.63%) Unbudgeted Special Trains 27 Holiday Trains Revenue 0 246,760 246,760 0 Expense 0 241,592 241,592 0 Surplus / (Deficit) 0 5,168 5,168 0 Insomniac Trains Revenue 0 44,759 44,759 0 Expense 0 16,979 16,979 0 Surplus / (Deficit) 0 27,780 27,780 0 Other Special Trains Revenue 0 0 0 0 Expense 0 0 0 0 Surplus / (Deficit) 0 0 0 0 Net Effect of Unbudgeted Special Trains 0 32,948 32,948 0 Net Loss before San Clemente (134,994,102) (114,163,289) 20,830,813 (15.43%) Member Subsidies before San Clemente 134,994,102 134,994,102 (0) (0.00%) Surplus / (Deficit) before San Clemente (0) 20,830,813 20,830,813 N/A San Clemente Track Work 1,666,191 17,186 (1,649,005) (98.97%) San Clemente #2 2,912,911 17,466 (2,895,445) (99.40%) San Clemente #3 4,003,301 367,524 (3,635,777) (90.82%) Net Loss (143,576,505) (114,565,464) 29,011,041 (20.21%) Member Subsidies 143,576,505 143,576,505 (0) (0.00%) Surplus / (Deficit) (0) 29,011,040 29,011,041 N/A 28 ATTACHMENT B SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ARROW SERVICE PRELIMINARY OPERATING STATEMENT FOR THE SIX MONTHS ENDING DECEMBER 31, 2024 FY25 FY25 VARIANCE FROM ADJUSTED BUDGET ACTUAL BUDGET OVER/(UNDER) Operating Revenue AMOUNT % Farebox Revenue 95,743 94,668 (1,075) (1.12%) Mobility 4 All 4,852 3,815 (1,037) (21.38%) Student Adventure Pass 0 100,613 100,613 0 Subtotal Pro Forma Farebox 100,595 199,096 98,501 97.92% MOW Revenues 0 123,613 123,613 0 Total Operating Revenues 100,595 322,710 222,115 220.80% Student Adventure Pass Member Support 0 85,416 85,416 0 Operations & Services Train Operators 2,099,070 1,939,297 (159,773) (7.61%) Train Dispatch 16,071 3,093 (12,978) (80.76%) Equipment Maintenance 1,675,704 1,707,201 31,497 1.88% Materials 75,000 59,790 (15,210) (20.28%) Fuel 255,108 226,706 (28,402) (11.13%) Operating Facilities Maintenance 166,278 45,083 (121,195) (72.89%) Other Operating Train Services 8,334 1,114 (7,220) (86.63%) Security - SB Sheriffs 1,312,410 1,138,914 (173,496) (13.22%) Security - Guards 134,430 130,917 (3,513) (2.61%) Public Safety Program 8,334 0 (8,334) (100.00%) Passenger Relations 7,038 11,365 4,327 61.48% TVM Maint/Revenue Collection 46,668 44,017 (2,651) (5.68%) Marketing 75,018 24,496 (50,522) (67.35%) Media & External Communications 2,082 0 (2,082) (100.00%) Utilities / Leases 177,456 159,924 (17,532) (9.88%) Transfers to Other Operators 2,002 2,672 670 33.47% Mobilization Arrow 645,624 645,624 0 0.00% Subtotal Operations & Services 6,706,627 6,140,213 (566,414) (8.45%) Maintenance-of-Way MoW - Line Segments 573,462 614,430 40,968 7.14% MoW Labor & Benefits 50,072 42,196 (7,876) (15.73%) Subtotal Maintenance-of-Way 623,534 656,626 33,092 5.31% Administration & Services Ops Salaries & Benefits 533,442 390,915 (142,527) (26.72%) Ops Non-Labor Expenses 110,646 135,019 24,373 22.03% Indirect Administrative Expenses 444,449 235,281 (209,167) (47.06%) Ops Professional Services 3,612 35,525 31,913 883.53% Subtotal Administration & Services 1,092,148 796,740 (295,408) (27.05%) Total Operating Expenses 8,422,309 7,678,995 (743,315) (8.83%) Insurance Expense (Recoveries) Liability/Property/Auto/Misc 52,230 52,230 0 0.00% Net Claims / SI 4,626 0 (4,626) (100.00%) Claims Administration 2,502 0 (2,502) (100.00%) Subtotal Insurance Expense (Recoveries) 59,358 52,230 (7,128) (12.01%) Total Expenses 8,481,667 7,731,225 (750,443) (8.85%) Net Loss (8,381,072) (7,408,515) 972,557 (11.60%) Member Subsidies 8,381,072 8,381,072 0 0.00% Surplus / (Deficit) 0 972,557 972,557 0 29 December 2024 – Financial Results 30 Ridership Actual vs Forecast by Month 31 2 2 FY25 Ridership Forecast vs Actual FORECAST ACTUAL PERIOD BOARDINGS RECOVERY BOARDINGS VARIANCE RECOVERY JULY-24 575,794 58% 587,449 11,655 59% AUGUST-24 604,565 59% 608,408 3,843 59% SEPTEMBER-24 583,347 58% 632,386 49,039 62% FY24 Q1 TOTAL 1,763,706 58% 1,828,243 64,537 60% OCTOBER-24 627,777 59% 676,687 48,910 64% NOVEMBER-24 581,182 59% 649,051 67,869 66% DECEMBER-24 573,564 62% 587,337 13,773 64% FY24 YTD Q2 TOTAL 3,546,230 59% 3,741,319 195,089 62% Fiscal Year to Date 3,546,230 59% 3,741,319 195,089 62% Student Adventure Pass Month of December = 191,433 32 1,153,699 3 3 Year-to-Date = FY25 Budget vs Actual – Farebox Revenue BUDGET ACTUAL PERIOD REVENUE RECOVERY REVENUE VARIANCE RECOVERY JULY-24 $3,653,703 57% $3,297,409 ($356,294) 52% AUGUST-24 $3,655,242 55% $3,369,765 ($285,477) 51% SEPTEMBER-24 $3,596,102 56% $3,475,165 ($120,937) 54% FY25 YTD Q1 TOTAL $ 10,905,048 56% $ 10,142,339 $ (762,709) 52% OCTOBER-24 $3,234,541 48% $3,704,168 $469,627 54% NOVEMBER-24 2,958,164 46% $3,550,259 $592,095 55% DECEMBER-24 2,941,323 50% $ 3,250,032 $308,710 55% FY25 YTD Q2 TOTAL $ 20,039,075 52% $ 20,646,799 $607,723 53% Fiscal Year to Date $ 20,039,075 52% $ 20,646,799 $ 607,723 53% Student Adventure Pass Month of December = $673,246 Year-to-Date = $4,077,447 33 4 4 Note: FY25 Student Adventure Pass reimbursed @ 50% Financial Results for December 2024 SUMMARY: • Before San Clemente, Total Expenses are under budget by $15.3M* • Overall Member Agency Support Required is currently in Surplus by $16.7M* Total Operating Revenue $32.8M or $1.4M Over Plan Total Expenses $145.9M or $15.3M Under Budget* Major Categories below budget: • Administration & Services below budget by $5.2M • Train Operators below budget by $2.5M • Fuel below budget by $2.4M • Insurance/Legal below budget by $2.1M Notes: • Expenses are based on Accruals not Actuals. • *Excludes $4.0M of unused Mobilization. 34 5 Accounts Receivable Update Past Due 35 6 Accounts Receivable Update Past Due 36 7 SCRRA Cash Position October – December 2024 Cash Category ($ in millions) Oct Nov Dec Agency Cash Position Operating Cash $67.3 $89.4 $105.5 Board Threshold 50.0 50.0 50.0 Unrestricted Cash Before
Claims: Less: Claims on Cash (77.0) (76.7) (75.6) Available Cash to Spend: $40.3 $62.8 $79.9 Notes: • November Estimated prior to month/year-end close • Does not include Prop 1B, and Reserve funds (legal, Working Capital Fund) 378 Arrow Service 38 9 FY25 Ridership Forecast vs Actual FORECAST ACTUAL PERIOD BOARDINGS BOARDINGS VARIANCE JULY-24 11,008 11,201 193 AUGUST-24 11,566 11,173 (393) SEPTEMBER-24 11,280 12,272 992 FY24 Q1 TOTAL 33,855 34,646 791 OCTOBER-24 11,931 14,871 2,940 NOVEMBER-24 11,243 12,323 1,080 DECEMBER-24 11,000 11,754 754 FY24 YTD Q2 TOTAL 68,029 73,594 5,565 Fiscal Year to Date 68,029 73,594 5,565 Student Adventure Pass Month of December = 6,164 39 Year-to-Date = 38,939 10 10 FY25 Budget vs Actual – Farebox Revenue BUDGET ACTUAL PERIOD REVENUE REVENUE VARIANCE JULY-24 $15,492 $30,484 $14,992 AUGUST-24 $16,279 $29,023 $12,744 SEPTEMBER-24 $15,876 $32,683 $16,807 FY25 YTD Q1 TOTAL $47,647 $92,190 $44,543 OCTOBER-24 $16,791 $34,194 $17,403 NOVEMBER-24 $15,823 $38,640 $22,817 DECEMBER-24 $15,482 $30,258 $14,776 FY25 YTD Q2 TOTAL $95,743 $195,282 $99,539 Fiscal Year to Date $95,743 $195,282 $99,539 Student Adventure Pass 40 Month of December $15,198 11 11 Year-to-Date = $100,613 FY25 Arrow Financial Results for November 2024 Service Financial Operating Revenue is $323K or $222K Results over plan Total Expenses are $7.7M or $750K below plan Support is $7.4M or $1.0M below plan 41 12 Student Adventure Pass Pilot 42 Student Adventure Pass Ridership – TVD vs. Mobile App FY25 Student Adventure Pass July – December 2024 Ventura Antelope San Orange Riverside IEOC 91 Line Arrow TOTAL % County Valley Bernardino County TVD 35,865 160,661 159,596 14,434 57,993 26,541 32,926 17,132 505,148 42% Mobile 74,944 100,671 174,364 20,313 134,233 69,605 91,553 21,807 678,490 58% App Total 110,809 261,332 333,960 34,747 192,226 96,146 124,480 38,939 1,192,638 100% 43 Thank you. 44 ITEM 7.D metrolinktrains.com/meeting ITEM ID: 2024-359-0 TRANSMITTAL DATE: February 21, 2025 MEETING DATE: February 28, 2025 TO: Board of Directors FROM: Donald Filippi, Chief Operating Officer SUBJECT: New Code of Federal Regulations (CFR) for Qualification and Certification of Dispatchers (Part 245) and Certification of Signal Employees (Part 246) Issue On May 21,2024, The Federal Railroad Administration announced to SCRRA and all other railroads new regulations to develop FRA-approved programs for certifying individuals who perform dispatching tasks and signal employees who work on signal systems and signal- related technology on their networks. Pursuant to this regulation, railroads are required to have formal processes for training dispatchers and signal employees, as well as verifying that each dispatcher and signal employee has the requisite knowledge, skills, safety record, and abilities to safely perform assigned tasks mandated by railroad rules and safety standards and Federal laws and regulations, prior to certification. Authority promptly started assessing the regulation requirements, including financial and human resources, necessary to comply with the regulations. Under this regulation, only the railroad can certify and recertify dispatchers and signal employees. The railroad's certification programs will encompass not only direct railroad employees but also contractors that perform dispatching tasks and/or signal employees who work on signal systems and signal-related technology on their networks. Recommendation Receive and file. Strategic Commitment 45 This report aligns with the Strategic Business Plan commitment of: Safety Is Foundational: We will stay on the leading edge by deploying new technologies and processes to enhance the safety and security of our riders, employees and the communities we serve. The Authority's compliance of new certification programs for dispatchers and signal employees will ensure an increase in safety standards for individuals performing safety-critical tasks of railroad dispatching and working on signal equipment and signal-related technology when working on the Authority's system. Background Per Title 49 CFR Part 245 and 246 FRA regulations, railroad dispatchers and signal employees play an integral role in ensuring the safety of railroad operations, as well as the safety of highway motorists. Dispatchers are responsible for allocating and assigning track use, ensuring that trains are routed safely and efficiently, and ensuring the safety of personnel working on and around railroad tracks. Signal systems are critical to the operation of every railroad and signal employees are responsible for the installation, testing, troubleshooting, repair, and maintenance of signal systems which railroads utilize to direct train movements; signal employees must also use specialized test and maintenance equipment to complete safety critical tasks on mechanical, electrical, and electronic signal equipment. FRA is codifying this regulation in response to section 402 of the RSIA, Public Law 110-432, 122 Stat. 4848, 4884 (Oct. 16, 2008), which required the Secretary of Transportation to submit a report to Congress addressing whether certification of certain crafts or classes of railroad employees or contractors, including railroad dispatchers and signal employees, was necessary to reduce the number of accidents and incidents or to improve safety. Section 402 further provides that the Secretary may prescribe regulations requiring the certification of certain crafts or classes if the Secretary determined, pursuant to the report to Congress, that such regulations are necessary to reduce the number and rate of accidents and incidents or to improve railroad safety. The Secretary of Transportation submitted a report to Congress on November 4, 2015, stating that, based on FRA's preliminary research, dispatchers and signal employees were two of the most viable candidate railroad crafts for certification due to the following: Dispatchers: complex safety-critical work dispatchers perform, the high turnover among dispatchers which has led to a less experienced workforce, and the need to prevent people with active abuse disorders from working as dispatchers. Given the safety critical role of dispatchers in facilitating safe railroad operations (which includes the coordination of emergency services in response to accidents and incidents), FRA determined that the number and rate of accidents and incidents would be expected to decrease and railroad safety would be expected to improve if dispatchers were required to satisfy certain standards and be certified. Signal Employees: with the introduction of Positive Train Control (PTC) technology. Given the safety critical role of signal employees in facilitating safe railroad operations, FRA determined that the number and rate of accidents and incidents would be expected to decrease and railroad safety would be expected to improve if signal employees are required to satisfy certain standards and be certified by each railroad whose signal systems they install, troubleshoot, repair, test, or maintain. 46 Discussion Certification programs will cover all employees (agency staff, contractors, and subcontractors) who are engaged in railroad dispatching and installing, troubleshooting, testing, repairing, or maintaining railroad signal systems or related technology. For the purposes of this regulation, signal systems include software and equipment for block signal systems, cab signal systems, train control systems, positive train control systems, highway-rail and pathway grade crossing warning systems, unusual contingency detection devices, power assisted switches, broken rail detection systems, switch point indicators, as well as other safety-related devices, appliances, technology, and systems installed on the railroad in signaled or non-signaled territory. This regulation requires railroads to develop written programs for certifying individuals who work as dispatchers and signal employees on their territories, and to submit those written certification programs to FRA for approval prior to implementation no later than September 17,