Good morning everyone it's my special pleasure to call this meeting to order
today and it's cause of celebration nobody's when the board is joining us on
zoom we're all here so we will not need to do a roll call vote. Start with our
safety briefing so if Hilary Conzal our safe safety security and compliance
officer chief if you would give us a safety briefing please good morning
chairman Chafee board of directors it's an honor to present today's safety
briefing in the event of a fire or evacuation we'll exit the room out this
exit here take the escalator stairs down to the lobby and as soon as we exit the
building immediately turn to your right and we'll congregate in the Metro
customer service area in the event of an earthquake we will take cover under the
desks or wherever we can and wait for the rumbling to stop. Once it stops we'll
determine whether we need to evacuate and wait for further instructions.
There are some several hazards in the room, tripping hazards, cords, chairs,
backpacks, just be mindful those if you're exiting the room and evacuating.
In the event of a medical emergency or somebody needing first aid we do have
our LA County Sheriff's Department in the room. They will be dialing 911 and
and handling emergency response.
We do have an AED at the front desk
that they'll, at the security desk that they'll retrieve.
And then in the event of an active shooter,
we'll utilize the run, hide, fight tactic,
and thank you, any questions?
Board members, any questions?
Seeing none, thank you for the safety briefing.
At this time, if you would all please rise
if you're able, and Director Olsen
will lead us in pledge of allegiance.
Thank You director Olson now I'd ask the court to call the roll make certain we
have a quorum. Director Nguyen, director Carroll, Vice Chair Burksen here,
director Spiegel, director Vargas here, director Molina second vice chair
Trembly director Engler here director Berger director Najarian director
Sandoval here director Solis director Olsen director Allen director O'Connor
director press the auto here director McCallan here director Wapner
Director Dutray, Director Marquez, Chair Tafee.
Present.
We do have a quorum present.
Thank you, Madam Clerk.
At this time, we move to general public comment.
We do have some public commenters on our public hearing.
At this time, I'd like to call those
that would like to make general comments.
Time is limited to three minutes.
Madam Clerk, do we have any general commenters?
We do not have any requests to speak
for general public comment.
however, I did receive several written public comments
regarding the student adventure pass,
and those will be emailed to the board later today.
Thank you.
All right, now we come to a consent calendar,
which on your agenda involves items 12A through 12G.
Is there any director or member of the public
who would like to hear an item separately?
Seeing none, may I have a motion?
Thank you, it's been moved and seconded, any objection?
Seeing none, motion carries you.
I'll abstain.
I was not here at the meeting.
I'll abstain.
I'm sorry?
I'll abstain from the vote.
OK.
One abstention.
Anyone else?
With one abstention, the motion carries otherwise unanimously.
Thank you.
Now we come to our public hearing this morning,
which is being held to receive public comment
on the findings of the Title VI analysis
and approval of the schedule change.
And with that, I'd ask for our staff person
if you would lead off and induce yourself.
And then after that, we'll open the public hearing
for public comment.
Thank you.
Thank you.
Good morning, Chair and members of the Board.
My name is Brian Jacob.
I'm a planning manager with Metrolink.
Next slide, please.
So in October of 2024, the authority launched
a system-wide schedule change which offers
increased frequencies, better connections,
and more service during weekdays.
The authority further adjusted the schedules
for the San Bernardino, Ventura, and Arrow lines
in January to address on-time performance challenges
and align services across multiple lines.
With the October schedule change in effect
for six months now, the authority is required
to perform a Title VI equity analysis
and associated public outreach to determine
if the change has desperate impacts for minority populations
or oppose a disproportionate burden
to low income populations.
Next slide, please.
On February 28th, the board approved the initiation
of the Title VI public comment process
for the continuation of the system-wide scheduled change
launched in October, 2024,
and it's just in January of 2025.
Between February 28th and April 15th,
when the comment period closed,
The authority received 1,771 e-commits.
The authority also held a virtual public meeting
on March 26th in which we had 61 attendees,
12 verbal comments, and 25 written comments.
To publicize the e-comment period,
the March 26th public meeting,
as well as today's public hearing,
we displayed notifications
on our electronic station message boards,
sent email notifications
to 700 community-based organizations,
and to over 96,000 Metrolink customers.
And we posted on Nextdoor,
two posts of which received over 81,000 views.
Next slide, please.
In addition to public outreach,
we commissioned a Title VI analysis for the schedule change,
the results of which are included
in Attachment A of the support report.
In summary, though, the analysis indicated
that there are no desperate impacts on minority riders,
nor is there a disproportional burden placed
on low income riders as a result of the schedule change.
Next slide please.
We therefore recommend that the board receive
the public feedback and the results
of the Title VI equity analysis
for the October 2024 schedule change
as adjusted in January and to hold a public hearing
and finally adopt the findings of the Title VI analysis
and improve the schedule change
as adjusted in January 2025.
Next slide please.
This concludes my presentation,
but I'm happy to take any questions you might have.
Are there any questions at this time?
With that, I'm going to open the public hearing.
We have notified members of public in accordance
with applicable requirements.
Each member of the public may submit written comments
as they choose to do so before the close of this hearing
and may address the board for a period not to exceed
three minutes during the public hearing.
After receiving oral and written comments,
This board will close the hearing
and consider approval of the schedule change.
Those wishing to testify should fill out
a request to speak form and submit it to the board court.
And we will call you, and I do have two completed forms.
I inquire if there are any other additional forms
or others that want to speak,
besides Olga Cardenas and Armando Saldana.
Seeing none.
With that, I'd like to call his first speaker.
Olga Cardenas, would you please come to the podium?
You have three minutes, so thank you for coming.
My name is Olga.
I have been riding the OC Metrolink
from Irvine to Commerce for 15 years.
I've always promoted and said great things about Metrolink.
I've made many friends, taken students on field trips,
on the train, and even bought a house
based on proximity to my train stop.
It's unfortunate that the October 24th schedule changes
made a terrible impact to many commuters.
The friendly faces have turned to stress and anger.
people stressed about train delays,
people stressed about waiting an hour instead of 30 minutes
if a train is canceled or missed.
People stressed about finding a seat
because trains are overcrowded.
People stressed about work days getting longer
because of limited trains.
Conductors stressed because they have to hear
all our complaints.
Your survey results indicate that OC Line
had the highest percentage of surveys completed
despite the fact that the OC Line
was not included on the survey until March 24th.
I was after several calls and several,
there was no community outreach for that survey.
I had to go around the train
and make my own little flyers and pass them around.
Results also indicate that the majority of passengers
on the OC line strongly oppose the changes.
Personally, I pay $273 a month for the pass,
but I also have to drive into work once a week
due to the schedule change
and often have to take an Uber
due to delays or cancellations.
My request is to consider reverting back
to the previous schedule for the OC line
or at least at every 30 minutes increments
to the trains in the afternoon or in the mornings.
I also request that more stops be added
to the Commerce 26 students train station.
Most stops in the OC area average five minutes apart in LA.
However, once we get into LA,
from Norwalk to Commerce, it's 10 minutes apart
then another 10 minutes to Union Station.
the city of commerce and the city of bell gardens
provide free shuttles to the stations.
However, due to the lack of stops in the city of commerce,
there is no use for those shuttles at this time.
So I do believe that we are disproportionately
disadvantaged at this time.
Please consider train 620, stopping at commerce
since OC 622 is often canceled.
Other comments that people have shared with me.
I have many, but I don't think I have time for that.
than if we can just be notified when there's a cancellation or thank you for
your time any questions comments thank you for your comments and taking the
time to speak to us I'd like to call our next speaker Armando sold on there's
Armando OC line rider for 15 years that's my wife there trains are very
crowded. I've seen pictures she sent me from the train of people crammed in the
trains and that's not very safe or fun for the riders. Now there's an hour
between trains and that's too long. I like to request to go back to 30 minutes
intervals between trains. More specific, they added back the 642 train or the OC
line. It's at 642 at Irvine and now it's at 712 and it's constantly
constantly late. And the train is always crowded. We're seeing more people riding that 6 to
7 12 a.m. train. It's just, and then it's late, and then it's more stress than everybody
being late to work. I'd also like to, as my wife said, request to add in a stop on
OC line 620 with 254 at Commerce Station. There's already a slot for it. Can we just
activate that stop on the OC line 620?
Thank you for sharing your concern with us, and I'm sure that staff and time will
look at any schedule changes, and thank you for suggesting one. Are there any
more public speakers? I don't see any, and so I'm now going to close the public
hearing and bring it back to this board for discussion and decision. Director
I'm curious to know if when we do have issues with overcrowding on trains, is it possible
for us to add an extra train car that, you know, right behind at the tail end of it?
But I know that our stations can't accept the extra train car to load and unload, but
is there any reason we couldn't add an extra train car that the doors don't open?
You'll have to go to the next car to get on or off.
Is that possible?
So Director Bergson, the operations team
is regularly monitoring the nature of all of our trains
and where we have overcrowded issues.
We have already done that as part of the schedule change.
We have added a six car to a couple of trains
where we've had overcrowded conditions,
and we can accommodate a six car train set on our platform,
so we are doing that actively.
We have heard right out of the gate,
certainly heard about some overcrowded issues on peak trains because it was a
big schedule change. We've all talked about that but we are regularly
monitoring that and if there is it the board, Metrolink has a policy. I believe
that if a train regularly averages 75% or greater in ridership as far as
seats available, that is when we add a car so that is
And I would ask there may be somebody from operations that can speak more directly to that. But in our case right now
We are staying below that threshold of 75 percent ridership on those trains
And and then just as a something to to to you know
My question is in this case, you know
Our stations can handle six car sets that open all the doors
My question is then could we add a seventh car and have those doors not open and you'd have to go to car six
six to get on or off or you know. Well the guys that know the best about this Rod Bailey,
Mike and Rod Bailey and Don Flippier can respond to that. My understanding is as we've added
the six we are not having any issues as it relates to capacity issues but a seventh car
there's elements to it but I don't I'll let Rod who handles our operations.
My own test, sorry.
Rod Bailey, Deputy Chief Operations Officer.
Good morning, Chair and board members.
So six cars, we do operate normally
on the trains that we've added six cars to.
We do not have capacity issues.
As Darren mentioned, we monitor the average ridership
on trains consistently.
And if it does meet a criteria, we'll add another car.
I will say, though, if we go up to a seventh car,
based on today's current contract and union agreements,
we have to add another crew member,
so it isn't at an expense to add a seventh car.
However, the data does not show
that we need to add a seventh car
on any of our trains today as we're operating.
I think, just as a quick follow up,
where we may have opportunity,
if we see that there may be reason to look at
on several of these lines,
obviously we have to do this with member agency support,
is splitting and having a train on the half hour.
So right now, almost all of our trains
are operating on the hour,
and that was the nature of the optimized schedule
where we spread trains throughout the day,
and that's been, we've seen great growth and ridership
of our off-peak trains, but there have been,
our peak trains are not as frequent.
So it may be something, if we see this continuing,
that we go back to our member agencies on certain lines
and say does it make sense to look at a half hour frequency
to spread out the ridership on peak trains.
Assuming there's slots available, right?
Correct, and there are slots available.
Thank you.
Dr. Norgearian.
Yeah, I kind of hate to bring this up.
This is really a much larger question,
but do we receive federal funding for the Metrolink system?
We do.
And are we aware of the, I'm sure you're aware of the letter
from the Secretary of Transportation,
which indicated we should take no actions discriminatory
against any, for or against any ethnic group
or race or ethnicity.
And this Title VI analysis really begs that question.
This is what we're analyzing and we're approving.
So I would say we put some sort of asterisk
next to this approval, saying that in no way
are we intending to, this action does not intend
to fly in the face of current federal regulations
and federal law, but under the then existing rules
prior to this letter, we are following through
with our obligations.
Director Najarian, that's a reasonable addition
to the recommendation.
I don't know if all board members are aware
of what the letter you speak of,
but Transportation Secretary Duffy did put out a letter,
as Director Najarian said earlier this week,
related to specific issues associated with DEI
and following, quote unquote, follow the law.
So that provision, that asterisk,
I will defer also to council on this, but I don't see any reason why that would not
be a reasonable add to the recommendation, but council.
That's a fair request.
We received a letter yesterday.
I need to spend more time with it.
But Title VI is a vehicle that is required by the FDA.
So you're following federal law under the FDA.
That letter specifically focused on DEI.
In no way would this be considered a DEI issue.
This is federal law, Title VI, going through the analysis
to make sure, in fact, there is not a disproportionate impact
which the analysis concluded.
However, your request is fair enough if the board is okay
with that, then it's, that would be permissible.
Until the dust settles, I think until agencies
across the country decide what individually they're
going to do with this, just to play it safe.
Director Appreciato.
Yes, thank you, Chair Chafee.
Just one of the, and I know you've done this a lot.
Delays and cancellations, those are the issues
that we've had with Vienna Star in that which we're
trying to fix, correct?
Correct.
We've really struggled with the lines that serve Orange County
and to a degree, Western Riverside County
on what's called the San Bernardino subdivision.
It's the segment that runs from Los Angeles to Fullerton
and then from Fullerton on into Riverside.
And BNSF has had a variety, a series of issues
that have made our lives difficult
related to on-time performance, delays, and cancellations.
We've seen progress in the last couple of months
since the conversation I had with their CEO
in December of last year.
We've seen that steady progress,
but it's still not good enough,
and we're gonna continue to push it.
And then, just so people are aware,
especially anybody watching or making comments,
some of the BNSF stuff happened
because they moved their operations somewhere else.
Correct, their dispatch team
that had been based in San Bernardino
were relocated to their headquarters in Fort Worth, Texas.
Because I think that even if we, regardless of,
if we wouldn't have made any changes,
I think BNSF would have probably still given us some issues
because of their operation systems.
And the plan which was fully vetted, checked into,
looked into, had those interruptions that happened
with their operations, it probably would have been
a smooth sailing.
It certainly would have been much smoother.
Mr. Felipe?
Good morning, Director.
To your point, we saw a consistent slide
of on-time performance with BNSF,
particularly on the line we're talking about.
That started in June of 2024
prior to us implementing our new schedule.
And it actually peaked or got the worst that we saw it
was just prior to us implementing our new schedule.
So the point you're making is very valid.
All of the issues that we've seen with BNSF
really have nothing to do with our new schedule.
They have all to do with BNSF's ability
to operate their system.
And I know we've been in conversations with them,
so I hope that they are definitely,
and I know that they are,
because they're getting a lot of pressure,
especially from us.
We need them to get on top of it.
And I hope that happens sooner rather than later,
because this way, I mean,
there'll be smoother operations for everyone,
especially most importantly our customers.
Thank you.
Thank you.
Any other comment from Andrew?
Yes, please, go ahead.
Thank you.
Is it, I'm a new board member, but I'm thinking,
you know, we don't want anyone
not to be able to get to work.
And since, is it possible if someone has a monthly pass,
if they're missing connections,
is it possible to work with our transit partners
to see if there's a way to, without an added cost,
to take a bus to finish their route
or get to work on the days
that there isn't a train available?
Just as a thought, we're all trying to support each other
in transit we want people to take mass transit all the time for everything is
that something that we could consider we director Molina we have partnerships
with most all of our transit agencies in the region if something with our system
breaks down we have what's called the quality service pledge that if it rises
to a certain level we provide uber vouchers for people to to finish their
trip or take the full trip. So we do have those options. Those are available to our
riders and so yeah I mean we've got those programs now and they're certainly
well utilized. So good question but yeah we do that now. Thank you. I see you have a
light next to you. Please go ahead. Thank you Mr. Chair. I'd just like to move
staff recommendation with the subject suggested asterisk moved in seconded
within asterisk as that would like to put that into the yeah anyway legal
counsel would like to express our intent all right we have a motion and a second
and the objection seen on motion carries unanimously thank you all comments and
Thank you to the two speakers we had for sharing your time
with us this morning.
Now we come to our regular calendar.
So we have our proposed 25-26 Metering Budget,
all-year forecasts, an annual contract authority renewal
and request to transmit presented by the lady with the hat,
Christine Wilson, our assistant director of finance.
I'm not sure that's the same hat you
at last time or not, it looks different.
I don't want to be predictable.
Okay, I thought it was different.
Thank you.
Good morning, Chairman Chaffee and members of the board.
I am presenting a request to transmit this FY26 budget
to the member agencies for their consideration and adoption
and for their approval of the multi-year forecast
covering FY27 through FY30.
And the item also requests for extension of contract authority on the annual contracts.
Staff is recommending that the committee recommend, I mean, I'm sorry,
staff is recommending that the board approve this transmission to the member agencies
for their adoption and approval.
Next slide.
Oh, sorry, thank you.
This report, I will be covering our financial challenges,
assumptions used to create that FY26 budget.
the proposed operating budget itself, the capital budget, and a brief summary.
Next slide, please.
Since the precipitous drop in ridership and revenue caused by the pandemic,
our revenue has only slowly improved in the commute hours.
On weekends, ridership is actually exceeding free pandemic levels.
Meanwhile, operating expenses increase each year,
and 60% of our operating expenses are fixed.
Member agencies are projected to provide 78%
of the FY26 funding for operating expenses,
a slight improvement of 2% from FY25.
We are fully aware of the burden
this places on our member agencies.
Next slide.
The proposed FY26 operating budget assumptions
are as follows.
Service level at the adjusted optimized service schedule.
Revenue projection is provided by SBIRI Capital KPMG.
No fair increases.
Student and youth discount 50%, no SAP program.
Fair restructure impacts forecast to be minimal.
Expenses, major contractor expenses only
is mandated by agreements.
Four additional FTE head counts, two for CFR compliance,
one legal and one outside 20 maintenance
that's funded entirely by Metro.
3% merit, 3% COLA.
New F CFR regulation support,
2028 Olympics readiness, no special trains.
And I remind you that Aero Service is a separate budget.
Next slide.
This slide shows ridership, either actual or forecast,
from July of 2010 to April of 2029,
as provided by Sperry Capital KPMG.
Next slide.
Next slide, please.
The proposed operating budget reflects operating revenue
of 76.9 million, an increase from the FY25 budget
of 8.9 million or 13.1%,
with the entire increase coming from Fairbox revenue.
Total expenses are $346.2 million, not including the outside 20 funded entirely by Metro and
the San Bernardino Sheriff's funded entirely by SBCTA.
This amount is an increase from FY25 of $15.5 million or 4.7%.
Our agency operating support is 269.3, an increase from FY25 of $6.6 million or 2.5%.
Next slide.
This graph shows our operating expenses from FY19 through FY26.
Next slide, please.
This graph shows our revenue over the same period.
has shrunk by 22 million while its expenses have increased by 105 million.
While that is only a 5.31% growth, average growth, over seven years, with the revenue
reductions we fully understand the difficulty it causes.
Next slide please.
The operating support required totals 275.5 million and this pie chart shows the operating
supporting support required from each member agency.
Next slide.
The chart shows the FY26 proposed revenue, expense, and support by member compared to
the FY25 budget.
The FY26 numbers shown here include the Metro Outside 20 and the SBCTA Sheriff's Cost in
in the FY25 costs and do not include
the mini-bundled mobilization 10.3
and student adventure pass contribution 3.2
on the 25 numbers.
As you can see on this basis,
the overall increase in expense is 10.6%
and the overall increase in support is 10%.
Outside 20, by the way, is equal to 2.9 million
and San Bernardino Sheriff's equal 3.3 million.
You see here the major expense drivers,
the largest being train operators,
security, TVMs, MOW,
ops salaries and benefits,
and indirect administrative expense.
Next slide.
The total, next slide please.
The total request for state of good repair is 137.5 million,
a decrease of 15.6 million,
or a decrease of 13.9%.
New capital request is 15.6 million,
an increase of 9.7 million or 164.4%.
Next slide.
This slide shows the amounts of the capital requests
from FY19 through FY26.
Next slide.
The pie chart shows the total FY26 request
from each member agency
for both operating and capital program.
Next slide.
This slide shows the FY26 request, sorry, next slide.
This slide shows the total FY26 request
by Member Agee as compared to FY25.
As you can see, the total increase is 0.6%,
with no member agency being requested
more than 4.1% over last year.
In summary, next slide.
Our member agencies encouraged us to partner with consultants
to review our service and equipment usage.
The results of the partnership
were the optimized service schedule.
We are focusing on growing ridership and revenue
through reimagining MetroLink.
Our consultants advise us that we will need two years
to see results, full results,
of the optimized service schedule.
This year in particular,
the budget was a joint project with our member agencies.
and we have received constructive agreement
from each of them.
Our four-year forecast adhere
to the sustainability principles discussed
with the member agencies, CFOs and CEOs
in the meetings remaining within a member agency support
year over year growth will increase not more than 5%.
Next slide.
Oh, that's it.
That concludes my report.
May I answer?
Questions directors?
Thank you Mr. Chair, a couple questions.
First of all, the decrease in state of good repair,
is that because we don't have the needs
or because we don't have the money?
It is not because we don't have the money,
it is a matter of our ability to deliver.
That's a relatively modest amount of a decrease.
We have significantly increased our state of good repair
over the last several years, thanks in part to the IIJA
and a lot of funding coming from that
and it's just a question of delivery.
This year was a higher number.
Next year will be a lower number.
I wouldn't be surprised if we're back to a higher number
so long as federal funds continue to flow.
Obviously it's important policy wise that we maintain that.
The second question is reference to student adventure pass.
I missed the meeting last month.
Is there any discussion about that at that time?
There was not any discussion at the meeting last time.
We have been working with the member agencies closely
on the question of the student adventure pass.
It is something that was a concept we started two years ago.
It's been a wonderful success.
And regrettably, the grant doesn't hold out any longer.
So that is the reason why we've had to shift
this approach with the Student Adventure Pass.
And it is a disappointment because we'd
love to see it continue.
What we're planning on doing is because of its success
is trying to encourage the state to come in and backfill
those dollars so we can have it really as a statewide program
to support students versus it really being either
on the grant that we have or on the backs
of our member agencies and that was the issue
that we were wrestling with was,
it was then on the backs of the member agencies
to fund the additional cost.
If you recall, I kind of cautioned us to move forward,
not knowing there'd be continuing funding for it
and that's what happened.
I would appreciate, Mr. Chair,
if we can put this on the next agenda.
I have some ideas of what we might be able to do
without impacting our budget that we've utilized,
I get omni-trans for the same kind of thing.
We end up getting agreements with local schools,
especially colleges and universities,
where they tack it on the fees for the students
to actually provide the funding.
And now it looks like we don't need to make up 50%,
because 50% is being covered by the budget.
And Mr. Chair, we can certainly add it to a subsequent agenda.
The challenge, we have been exploring all options,
and we have a very lean operation in our partnerships group
that has helped us support this program.
And having the involvement with schools, colleges,
that kind of thing, I'll call it almost hand-to-hand,
It's very unique to each institution.
Our intent was after today's action was two-fold.
One, we need to start communicating to schools and students
because the program would shift as of July 1,
and we need to get the word out that we will go
from a 100% discount to a 50% discount.
At the same time, we are committed to working
with where schools can come up and support this
on a more case-by-case basis, so students can do that.
You could imagine our program was as expansive
as any in the country, because we allowed every school,
every student, trade school, community colleges,
high school, it's a massive program.
And so that was the challenge, but if we are able
to be more targeted with each institution,
then we can make that partnership happen
on an institution-by-institution basis.
if, you know, obviously, because we need to get the word out to students that the program will be changing,
and that's doing it now, so we have it ready for July 1 is what we're hoping to do, Director Wapner,
and then, again, independent conversations with each of those schools.
Because we were familiar with all of our member agencies have had something similar.
I think in Orange County, it was a very community college-based program.
LA Metro also community college and only community colleges.
We thought bigger and so Director Wapner you said it,
start something and then we have to pull it back.
Well, we started really, really big
and it's been a wonderful success but now we have,
the reality is set in about being able to deliver on that.
Yeah, as long as I'm assured
that you're gonna continue working towards that.
Yes, sir.
And I'd appreciate that.
Thank you.
Director McCallum.
I'll just cure my ignorance.
What is the Metro outside 20?
So most of our member agencies take
care of the outer 20 of the right-of-way
outside of the operating portion of the tracks.
So you have the most right-of-way is 100 feet wide.
And so the outer 20 is the 20 feet
on the outer portion of each side of the railroad tracks
that effectively abut the homes or whatever private property.
So LA Metro does not do that.
We maintain it, their requests, and they pay for it.
In the case of SBCTA, SBCTA funds the outer 20.
Almost all of our member agencies do it that way,
whereas LA Metro, we effectively,
they contract with us to provide it.
Right there.
Yes, go ahead.
Thank you, Chair.
I share Director Walker's sentiments
about the student venture pass,
if I understand that correctly.
It was free before, and now a student will have to pay 50%, correct?
So it originally was a 25% discount.
That's what we had had for students for a number of years.
Two years ago, utilizing a state grant, we were able to go to the 100% discount, and
it was wildly successful.
So much so that, again, it went through all the grant dollars, and then member agencies
were having to come in and cover the additional cost.
So now we're taking it back so the grant can cover the portion that we can actually, so
that we're not out the dollars.
And I understand why we have to do this.
We're faced with real financial issues, and there's a short term aspect to this, but there's
also a long term impact in terms of young writers who go onto the system, who become
future writers, and the more we impact that is it will pay later.
So my question for you is when we make the decision,
and by the way, I'm new,
so I haven't been part of a privy to conversation,
so forgive me, board,
if you've had these conversations before,
but how I see things is what was offered up
in terms of an alternative where a cut could be made
somewhere else to be able to support that program?
And I don't know if that came before the board,
because I always like to be able to see,
Well, what options do I have?
How do we still maintain a program like this?
But in doing so, I know that this is not additional funds.
You have to cut somewhere else.
I just want to better understand that so that when
I have to make a decision about choosing what's, I think,
in the best interest of this organization,
it's important for me that young people have an opportunity
to ride our system.
And lastly, I think it's going to be very critical,
should we move forward with this piece,
is that we track very closely, what is the change in numbers.
If we go from 0% to now 50%, are we
seeing a considerable drop off of young riders
who we hope that they're going to be riders in the future?
Thank you, Chair.
And Director Sandoval, we will be tracking that.
Through our analytics unit, we have actually
looked at what we might be seeing as a potential drop
in ridership by going this.
Now, that's something that's a bit of a forecasting.
so it's not sure and certain.
We worked very closely with the five member agencies
on this question.
And generally speaking, while everybody loves the program,
there's a recognition of the cost of it.
And I want to make sure it doesn't go unnoticed
that when Ms. Wilson was presenting,
what was the budget that we're proposing today
as compared to what we had last year?
In total, it's under.
It's less by 0.2% when you consider both capital.
And so we've worked very hard to do what we can
to find reductions, and we still need
to cover some of those expenses.
Director Sandoval, I appreciate it.
Thank you for, you know, I'm glad you're here.
Cal Poly Pomona, we actually had really good ridership
out of Cal Poly Pomona,
and the Claremont College is around the corner
from your town.
This was a program I started in Ventura County
when I was the executive director there.
I saw the benefits of it for all the reasons you mentioned.
We are, we are, we are have the next generation of riders.
So there is no one more disappointed in this
that we have to go potentially,
that we need to go in this direction
and try to go school by school to work with it.
And we just, our, our customer,
our customer relations team is just, it's a couple people.
And whereas not to compare ourselves with LA Metro,
they have a staff of 10 handling
their community college program or something they're about.
To that point, our and I serve both on the Metro board.
And I'm mindful you said you have two.
Is there any cross collaboration between both agencies?
Because we're certainly wanting to promote the Metro Go Pass.
But we know that riders don't just perhaps ride one system.
They ride multiple systems.
Are we doing any collaborative work with Metro
that could help support this agency in terms of getting
the word out to the local colleges?
We do have some collaboration, it's always better,
the thing we always challenge with is we have five agencies
and numerous transit systems throughout the region,
so the collaboration with the various transit systems
is really, it's complex.
Understood.
Thank you, thank you, CEO.
Thank you, Mr. Chair, what's the cost of the program?
I didn't ask for the number.
Oh, Christine, do you know?
I recall last year, it was seven million,
Close to seven million as I recall. Okay, and the projected cost with the 50% reduction
We've got a we've got some money with a grant
So taking 50% off
seeing the other lights on
All right. This is basically to let our major our member agencies
Look at all of the data
They're going to be seeing and they need to approve their shares as well
So, is there a motion to approve this item?
I'll move.
Motion carries.
I look forward to seeing our CEO in Orange County on Monday to explain all this.
Thank you.
Okay, Christine, you're still on on our next item, the Aeroservice Budget.
This transmittal is for the Arrow service to transmit that budget to San Bernardino
County Transportation Authority for their consideration and adoption.
This transmittal does not include a four-year forecast.
All the things that are going on at SBCTA, they're all so busy, is required.
We couldn't produce a forecast that would include ZEMU,
because there's just no historical information.
So we just.
So in this item, I'll be presenting
Arrow Service FY26 Assumptions,
the revenue basis, the operating and capital budgets.
Next slide.
As to the budget assumptions,
service schedule is the current Arrow Service.
Revenue is ridership and revenue
based on this very capital KPMG forecast.
No fair increases.
New fair promotions, as proposed by SBCTA.
The student youth discount is 50%,
and fair restructure impacts.
Expenses, contractor increases
only as mandated by agreements.
The elimination of two arrow-specific FDE head counts
that have been transitioned to Stadler.
New federal regulation support.
Next slide.
This shows the forecasted aero ridership
from September 2024 through May of 2029.
Next slide.
The operating budget for FY26.
You see here that it includes operating revenue
of 0.7 million, an increase of 0.5 million
or 225.3% from FY25.
Expense of 18.2 million,
increase of 0.7 million or 3.9 percent and member agency support of 17.5
million and increase of 0.2 million or 1.2 percent. Next slide. This chart shows
the Aero Service operating expenses actual or budgeted from 23 through 26.
Next slide. This is the next slide, please. New capital program. So state of good repair
is .5 million, an increase of .37 million or 240 percent from FY25. The new capital
is .42 million, a decrease from FY25 of 1.83 million or 81.2 percent. Next slide, please.
slide shows both SGR and new capital requests for 25 and 26. Next slide. This slide shows
the state of good repair and new capital as they've existed in the last two years. Next
slide. In summary, the budget incorporates transitioning equipment and facility mains
from Metrolink to Alstom and Stadler. That concludes my report. May I answer any questions?
directors. Mr. Chair if I could just real briefly this the development of this
budget was done hand-in-hand with the staff at SBCTA as we we've received
positive feedback I think we're in a good spot it also will just it's not
mentioned but it should it shouldn't go without being mentioned is that this new
budget also does have a I don't want to call it unknown but it will be the
first time we have the ZEMU operating under a revenue service and so at this point a one
of a kind in the United States so we will be learning a little bit and when you have
a one of the kind you're going to be learning things we don't know.
We may have some questions on how about all that plays out but everybody's going in eyes
wide open as we look to have the three DMUs as well as the new hydrogen ZEMU.
The exciting adventure here
Seeing no director comments. May I have a motion for approval?
I'll move that I have a second
Second any objection?
motion carries unanimously
Let me go on to
Something that keeps coming back too much the stabilization of the San Clemente tracks and we have
presentation from Tom Schomber
Our interim chief financial officer and via on shoe our assistant director for a track and structures maintenance
Please share with us your thoughts
Chair Chafee and members of the board on April 14th, the Orange County Transportation Authority board of directors
Authorized emergency action to address continued erosion at three locations in San Clemente
It pose a risk to our service and our passengers
This action item requests approval of actions taken by the chief executive officer to mitigate those risks
I'll let Fia come up and describe the current conditions in these areas and the work to be completed in more detail
The OCTA study identified four areas requiring immediate action. The areas are shown on the map
The study identified continued coastal erosion of the riprap barrier.
This looks like gaps in rock where the soil supporting the right-of-way exposes the dirt
underneath the tracks or the erosion in areas where it disturbed the structural integrity
of the riprap barrier.
The other item that they identified was on the inland side of the right-of-way where
where they saw continual movement, visual movement of the bluffs indicating a potential
future slide in that area. Next slide.
SCRA's involvement will be in Areas 1, 2, and 3. In Areas 1, we will be placing rip
wrap to restore the protection along the coast. This involves placing 7,700 tons of rip wrap.
On the picture on the left, you see an example of rip wrap is just large boulders with jagged
edges. For area 3, SRA will remove the pedestrian bridge, the remaining
structure. It's about 900 feet. That's shown on the right side.
OCTA is solely responsible for the costs incurred by Metrolink for this work. They
have facilitated an allocation of $9,984,000 of grant funding from the
California Transportation Commission.
OCTA will advance metro length of working capital necessary
to cover the cost incurred until grant agreements can be executed
and reimbursements obtained.
As an unplanned cost, a budget amendment is necessary
to reflect the additional expense.
If costs exceed this amount, staff will return to the board
with another amendment request.
Next slide.
Staff recommends that the board approve
the following actions of the CEO to address this emergency.
Number one, negotiation of a cooperative agreement with OCTA.
Number two, adoption of an amendment
to the FY25 budget of 9,984,000.
And authorization for the CEO to enter
into one or more non-competitive procurements
in an aggregate amount, not to exceed $9,984,000.
This concludes our presentation.
We'd be happy to answer any questions.
Director, his questions.
If I could, one real quick ad.
The Orange County Transportation Authority
did make application with the California Coastal
Commission.
The California Coastal Commission
did approve a conditional emergency permit for this work
to be performed.
so that is the operation that we're working under.
Director Bergson.
Yes, on my way in, on the news,
I heard that Sir Fliner and Metrolink
would be shutting down, I think, as of Monday on that line.
Is that for this repair work?
And if so, they said it could be for weeks.
Do we have an actual timeframe?
We do.
We anticipate, first of all,
the Coastal Commission's permit has a final date, June 9.
Thank you.
We have to be complete by then.
We are looking at possibly six weeks
to perform this work, seven days a week,
while still allowing BNSF to run freight trains at night,
but no passenger trains during the day
because we will be staging our trains
with giant rock cars that will be dropping
the rock boulder into the corridor.
So we do anticipate as long as a six-week closure.
We will continue to operate our trains
to Laguna Niguel.
So we will not be making stops in San Juan Capistrano,
San Clemente, or Oceanside.
We will be, otherwise service will stay intact.
So interestingly enough,
they also reported in the report this morning
that we would have buses to take people
from wherever we're stopping to where it continues.
Is that going to be the case?
Surf Liner will be doing that.
Amtrak's Surf Liner will be doing that.
We will not.
ridership south of Laguna Niguel. We know it's an impact for people but it's a
relatively small number that we would be needing to do a bus bridge for. It's at
a substantial expense for not many riders. So in the, Director Burksen, the
last time we did a closure we operated in the same fashion with Laguna Niguel
being the the last stop and while we certainly had some complaints from those
that board an Oceanside it was a relatively small number. So if that's the
case then you know I listen to KNX on my way in and they're reporting it as if we
Metrolink is providing that bus bridge so somebody from staff can reach out and
let them know what the correct information is we don't want to the
public to get the wrong impression. Good point. Our communications team is here in
Audience as well as listening online, so they will be following back up with
Questions if I might comment Oh CTA my agency has taken necessary actions to proceed
It's been a kind of an ongoing
Battle with the Coastal Commission finally were able to get a an emergency
Application approved in the past it was kind of
Wanting us to go the normal route, which could take a couple years
So now we do have the emergency action and that is causing the immediate need to stabilize the slopes
It could otherwise fail so it's actually good news
and I see a light we spent just just real quick because
We're skipping a non-competitive bid process because the emergency of the situation, but
And apologize again. I'm new here. So if you've discussed this forgive me, it seems like the nature of the emergency
could
Continue like this isn't the first time we've had problems on this line. It might not be the last time
So can we get into a situation where we pre-qualify?
vendors so that there's no
You know I'm saying like can we have a strategic plan for ongoing concerns and have qualified vendors in the ready to go so
Director Olson in this case because we have been this has been a bit of a moving target as it relates to schedule
When we were going to have the emergency declared a few different things
We have a current contractor who takes care of our maintenance of way Herzog Corporation is our
Track signal and maintenance of way contractor. They have performed the placement of rock in this location before so we will be able to
And as Tom indicated, it's an instrument that directs them to do work that they have done before.
So we have an ABLE qualified contractor that we can go to directly.
And because of the nature of this and the timeframe we have, because of the Coastal Commission's timeline,
we have to move quickly, which is why Herzog will be the selected vendor.
In the past when we've had to respond with an emergency we have gone out and done a
I'll call it a mini procurement where we just get we go to two or three companies say can you do this work?
So we've done that with some barrier walls that we've built in the past
But in this case the timeline is so tight that we just need to direct our contractor
I've been dealing with it for three and a half years. I
Might add this part of the right away is owned by
OCTA and I think we take major responsibility for its repair and the oversight of the work
With that may I have a motion?
For approval and we appreciate that by the way. It's not an easy. We appreciate OCTA's
Leadership in that because it's a it's a very difficult situation. Obviously
So good job move to approve
Who didn't second any objection motion carries an aspect. Thank you all
Now we come to another action item
As a degree between us and the Los Angeles met we call Metro
with a Ramona Garden City Terrace rail line
beautification project and it's going to be presented by
Maria label our director of design and
Justin for Nelly our chief program deliverer
Mr.. Chair without objection. I would move this item
Okay dispense with his staff report all right any objection seeing none may have
a motion for approval so moved second we can second it an objection motion carries
we don't want to miss our train doing all right there's a receiving file item
that follows and if there's no objection it's been on our report it will just
deem it receive and file unless there are some question the director has.
All right, is dean received and filed?
Mr. CEO, you're on.
Thank you.
Boy, I should get a hint here, shouldn't I?
Very quickly, with thank you, Mr. Chair.
Next slide.
Just again, we've reported on this.
We are excited to report the fact that the month of March, 2025, the weekend ridership
broke all-time records where we had 122,693 boardings.
Our prior record, which was pre-pandemic, is 117,000.
So 5,000 more riders on the weekend in the month of March
breaking our record.
So we're really pleased about that.
This goes back to the messaging we've
been talking about, ride the train for something other
than going to work.
We did have some benefit.
the Swallows Day Parade in San Juan Capistrano,
we had a big event in San Bernardino Festival,
the Dodgers opened up at home at the end of March,
all those good things led to good ridership.
So, pleased to report that.
Next slide.
Earth Day.
Let the good news continue.
I broke another record after last year's 25,
almost 26,000 boardings on Earth Day, our free fair day.
This Tuesday, this past Tuesday, 34,000 boardings,
25% increase over our last high fare day, our free fare day back of transit equity
day of this year.
I think it was a 31% increase over Earth Day of last year.
So again, really positive ridership numbers.
I should just speak in general.
We are regularly now four days out of the week seeing ridership over 23,000 boardings,
which is by far our best.
And it shows the optimized schedule is working.
Next slide.
So we all felt a little bit of a tremor a couple of weeks ago based in Julian, California, in San Diego County.
And we've talked quite a bit about our ShakeAlert, our relationship with ShakeAlert and our PTC system.
This was the first quake where it was significant enough and close enough to our tracks that the PTC system
actually stopped our trains by itself and I should say stopped it slowed them
I believe five miles an hour I think was the speed or something there about so
I'm getting a head nod from Luis Carrasquero our deputy chief operating
officer who's the expert in this but it was the first time where it actively
took it usually it has just sent a note a message to our engineers to slow down
this time it actively performed and did so just as it's designed next slide we
We want to invite you all to a simulation exercise at the Cavena station on May 18th.
The board secretary or board clerk will be sending out continuing invitations.
This is an annual full-scale emergency simulation exercise.
We actually need, we need actors.
We need people to step in and everybody say, no, I don't want to do it.
But we would encourage you to be a part of it to work with our first responders.
So we'll stay tuned for more information on that.
Next slide.
So Mr. Chair, we would ask that as you, during this meeting, you do so in memory of Raymond
Paralles.
Raymond Paralles was our director of train control system that I just mentioned to PTC.
It's sort of our back-office team that is the tech team.
We have onboard, we have on the right-of-way and then we have the back-office team.
Ray had been with us for a year and a half or so and he was going to have to take a leave
of absence.
He was diagnosed with stage 4 cancer, was informed our chief technology officer, Kevin
Gray, that he thought he would respond well to the treatments, and sadly within one week
of the day that he said he was going to have to go on leave, he passed.
So very, very sudden, and so, Mr. Chair, we would ask that when you do adjourn, you adjourn
in his memory.
Mr. Chair, that concludes my remarks.
Well, thank you for that.
Board members, any comments?
If I might.
Director McCallum.
Thank you very much.
Just wanna know what's the status of the DMU study
and implementation plan?
Mr. Fornelli, can you give us the latest on that?
I know we've had, we have feedback
from both member agencies that were involved
and with other than that, Justin, what do you got?
Yes, Justin Fornelli, Chief of Program Delivery Director.
We have completed that analysis.
We've received comments back from both SBCTA and Metro
who helped with funding that study.
We've addressed those comments
and finalized the document.
And so that document lays out very specific steps
and the funding needed to implement the multiple units
on both the San Bernardino line and the Antelope Valley line.
So when will the board see it?
a great question we can when we're ready to
agendize it we would want to make sure of course that director McAllen you're
in attendance at either executive committee or board meeting so that
you're here so let's make sure we coordinate calendars with the principal
member agencies that are involved in the study and we'll we'll do it at a the
next most feasible meeting. Thank you, I appreciate it. Yes just like to announce
and invite everyone the LA County Fair will be starting May 2nd in the Pomona
Fairplex. It is the fair art unleashed. There's gonna be a lot a lot of things
going on. We've had thankfully we've had a lot of local artists do some work
there. One of the I would say neatest things that I'm looking forward to is a
A local Pomona resident through now I think a couple of years and even some city support has started a
Knitting group and they're just amazing in everything that they've done and so they
them and
hundreds of people all submitted a 10 by 10 like square where a community member knitted it themselves and they're gonna put all of those
together to make one large huge amazing shade structure and
and it's gonna be quite a scene,
so please come check it out.
Thank you.
Thank you.
Director Najarian.
Yes, I've been very derelict in my duties
as the dean of the LA Contingency
to the Metrolink board,
and that is a proper introduction of my two new colleagues,
Council Member Eric Olson,
a council member from the city of Palmdale,
very experienced and very,
I think his appointment reflects the importance
that LA Metro has on the Antelope Valley line,
especially the top section past Santa Clarita on forward.
And it's a long way to get here as some of my colleagues know,
so it's not like me just coming down from Glendale.
As well as my long-term colleague on the Metro board,
Mayor of Pomona, Tim Sandoval,
who's a very thoughtful and inquisitive
and responsible director,
and I'm sure that you will see and we will receive a lot of great input from him as we
have already been doing. So let's have a big round of applause for our two newbies.
Director Olson, comments? Do you need a drumroll? Okay, we got one.
No, but I just wanted to add on to Director Preciado, my colleague at Wona City Council,
As it relates to the fair, I want you to know that the farm animals are still there.
So if that's what drew you to the fair, which I know many of you have been to, I just want
to assure you that the different farm animals are there that you can visit.
Thank you.
That's all my contributions.
Thank you.
I just want to say thank you, thank you for having me and that transportation is important
to me and to Palmdale.
We have the highest commuters, the highest commuter rate
in the country.
It's Palmdale, California, then New York City.
So that's my passion.
That's my drive.
I want to figure out how we can make life better
for the residents of Palmdale.
And this is a huge step in that.
So thank you for having me and including me in this process.
Well, thank you for that.
I simply comment that the Commodity Ray and Goodwill on this board has it at a very high level.
I'm pleased to have you join us.
That goes for staff too and the interrelationship we have with the board.
I mean that's very much appreciated.
With that, we're going to adjourn our meeting in memory of Raymond Parrales,
who has unfortunately passed away recently.
He served as the Director of Training Control Systems and our PCC network of control operations.
and we appreciate the work and we do want his memory
to be memorialized as remembered in this adjournment.
With that, we adjourn this meeting.
Thank you all for attending.