Board of Directors - May 23, 2025

May 23, 2025 · Board of Directors

Agenda

6. Approval of Consent Calendar Items: 12.A-12.Q

All Consent Calendar items are listed at the end of the agenda.

Attachments (2)

7. REGULAR CALENDAR

7.A Contract No. SP627-26 - Marketing, Advertising, and Creative Services - Recommendation to Award - Anyone Collective, LLC The Authority requires a full-service marketing agency to provide advertising, creative, and marketing strategy support services. The selected consultant will assist Metrolink in achieving its marketing objectives to increase ridership, reinforce the brand, and engage key audiences. It is recommended that the Board authorize the Chief Executive Officer (CEO) to award Contract No. SP627-26 with Anyone Collective, LLC to provide Marketing, Advertising, Creative Services for base term of three years with one two-year option, to be exercised at the discretion of the Authority’s CEO, and subject to funding availability. The requested total not-to-exceed contract authority is $8,000,000 for the three-year base period plus $4,000,000 for the option years, for a total of $12,000,000. This award is subject to the resolution of any timely filed protest. Funding for this contract is included in the proposed Fiscal Year 2025-26 Marketing Budget and is contingent upon its adoption by the Authority Board. Funding for subsequent years will be requested through the annual budget process. There is no financial commitment with respect to future years; work will only proceed if funding is approved. 7.B Financial Results for the First Nine Months of FY25 - March 2025 Ridership, Revenue, and Operating Results, and Forecast to Year End 2025 "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 is the Optimized Service Schedule which began on October 21, 2024. This report covers monthly reporting on Ridership, Revenue, and Financial Operating Performance for the nine months ended March 31, 2025. Board of Directors Meeting May 23, 2025 3 At the third quarter of each year, staff presents a forecast to year end, which is also included in this report. Receive and file. 7.C May Legislative Update Staff provides a regular monthly update on current legislative affairs. Receive and file.

Attachments (2)

8. Chief Executive Officer's Report

Authority Update

11. Closed Session

A. PUBLIC EMPLOYMENT – Pursuant to Government Code Section 54957(b)(1) Title: Chief Executive Officer B. CONFERENCE WITH LABOR NEGOTIATOR – Pursuant to Government Code Section 54957.6 Agency Designated Representative: Chair Doug Chaffee Unrepresented Employee: Chief Executive Officer

12. CONSENT CALENDAR

12.A Approval of Meeting Minutes - April 25, 2025 Regular Board Meeting It is recommended that the Board approve the Minutes of the April 25, 2025 Regular Board Meeting. 12.B 2025 Title VI Program Update Board approval is needed for the triennial 2025 Title VI Program Update, which demonstrates the Authority's compliance in ensuring protections for the public against discrimination based on race, color, and national origin in compliance with Title VI of the 1964 Civil Rights Act and associated guidelines issued by the Federal Transit Administration (FTA). Executive Committee recommended (4-0) the Board to approve the Authority's triennial 2025 Title VI Program Update and transmit it to the Federal Transit Administration. There is no budgetary impact as a result of this report. Board of Directors Meeting May 23, 2025 4 12.C Quarterly Compensation Report - 3rd Quarter of Fiscal Year 2025 - January 1, 2025 through March 31, 2025 In compliance with HR Policy No. 2.1, Wage and Salary Administration – Salary Program Administration, staff is required to make quarterly and annual reports to the Board on compensation matters. Receive and file. 12.D Low Carbon Transit Operations Program (LCTOP) Resolution The State of California's Low Carbon Transit Operations Program (LCTOP) requires that the Board adopt a resolution, provide required certifications and assurances, and delegate authority for execution of any actions necessary under this grant. An annual resolution is required to receive LCTOP funds. Audit and Finance Committee recommended (3-0) that the Board approve Resolution No. 25-145 Authorization for the Execution of the Resolution, Certifications and Assurances, and Authorized Agent Forms for the Low Carbon Transit Operations Program (LCTOP) for the Metrolink FY26 Student/Youth Discount. There is no budget impact as a result of this report. 12.E State Rail Assistance (SRA) Program Resolution The State of California's State Rail Assistance (SRA) Program requires that the Board adopt a resolution, provide required certifications and assurances, and delegate authority for execution of any actions necessary under this grant in order to receive SRA funds. Audit and Finance Committee recommended (3-0) that the Board approve Resolution No. 25-146 Authorization for the Execution of the Resolution, Certifications and Assurances, and Authorized Agent Forms for the State Rail Assistance (SRA) Program to support the Mobility-4-All program. There is no budget impact as a result of this report. 12.F Internal Audit Department Quarterly Update for Q3 FY2025 The Internal Audit Department (Internal Audit) provides quarterly updates on internal and external audits and other activities. This item represents the third quarter of FY 2025 (January 1, 2025, to March 31, 2025). Receive and file. 12.G Corrective Action Status Update - Third Quarter Ended March 31, 2025 The Internal Audit Department (Internal Audit) provides the Board with a quarterly report on the status of the corrective actions of prior audits. Board of Directors Meeting May 23, 2025 5 Receive and file. 12.H Performance Audit: Invoice Submission to Accounts Payable (2024-03-IA) The Internal Audit Department (Internal Audit) completed the Performance Audit: Invoice Submission to Accounts Payable (2024-03-IA). Receive and file. 12.I FY2024-25 Quarterly Fuel Purchase Program Update - Quarter Ending March 31, 2025 Staff is providing an update on the Authority's Fuel Purchase Program for the quarter ended March 31, 2025. Receive and file. 12.J Grants Quarterly Update - 3rd Quarter, Fiscal Year 2025 Staff is providing an update of grant acquisition, reprogramming and closeout activity for the period of January 1, 2025 to March 31, 2025. Receive and file. 12.K FY2024-25 Quarterly Accounts Receivable Status Report - Quarter Ended March 31, 2025 This report presents an update on the Authority’s Accounts Receivable for the quarter ended March 31, 2025. The report covers outstanding receivables, unbilled balances, and provides a status related to billing and collection efforts. Receive and file. 12.L FY2024-25 Preliminary Quarterly Investment Report - Quarter Ended March 31, 2025 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 March 31, 2025, and contains estimated information published prior to the conclusion of the Authority's fiscal year close and is subject to adjustment. Receive and file. 12.M Memorandum of Understanding No. MU147-14 - National Railroad Passenger Corporation - Extend Agreement and Increase Contract Authority for Red Cap Services at Los Angeles Union Station Board of Directors Meeting May 23, 2025 6 The Authority is required to continue offering cart service to passengers needing assistance at Los Angeles Union Station (LAUS), as mandated by the Americans with Disabilities Act (ADA). Contracts, Operations, Maintenance, and Safety Committee recommended (5- 0) that the Board authorize the Chief Executive Officer to approve amendment No. 6 for a two-year extension and increase contract authority for MOU No. MU147-14 - National Railroad Passenger Corporation (Amtrak) by $307,460 for a not to exceed amount of $1,357,742 for Redcap cart service at LAUS. A portion of the amount for which contract authority is requested is included in the Proposed Operating Budget for FY2025-26 ($153,730) and is contingent upon adoption thereof. Funding for subsequent years (FY2026-27) will be requested through the annual budget or an equivalent process. 12.N Contract No. JO142-25 - Track Rehabilitation Services - Recommendation to Award - DRS Contracting New installation and/or replacement of various track elements along with support for third-party projects are required t o maintain a state of good repair and maintain the safety and reliability of the existing rail system and supporting infrastructure. A new contract is required through which the various track improvement scopes may be implemented. Contracts, Operations, Maintenance, and Safety Committee recommended (5- 0) that the Board authorize the Chief Executive Officer to award Contract No. JO142-25 for Track Rehabilitation Services to the lowest responsive and responsible bidder, DRS Contracting, for a not-to-exceed amount of $6,264,000 for a two-year term. The Authority will issue individual Job Orders on an as-needed basis in the first year and all work must be completed by the end of the second year. This recommendation is subject to the resolution of any timely filed protests. This contract authority is requested to cover approximately $3.46M to be utilized for Capital Projects and $1.45M for Third Party Projects. The amounts for Capital Projects have been approved in Budgets for FY25 and earlier. The third-party projects will be funded by outside parties. 12.O Contract No. EP244-25 - Rehabilitation of Bombardier Out-Of-Service Cars - Recommendation to Award - SYSTRA Canada The Authority intends to rehabilitate eight (8) Bombardier railcars that are currently out-of-service to extend their useful life and support passenger service for the 2028 Olympic and Paralympic Games. Contracts, Operations, Maintenance, and Safety Committee recommended (5- 0) that the Board authorize the Chief Executive Officer (CEO) to negotiate and award Contract No. EP244-25 for Rehabilitation of Bombardier Out-Of-Service Cars, to SYSTRA Canada in the amount of $4,165,383.40 plus 20% Board of Directors Meeting May 23, 2025 7 contingency in the amount of $833,076.68 for total contract authorization amount not-to-exceed of $4,998,460.08. This amount is to rehabilitate eight (8) Bombardier railcars that are currently out-of-service due to obsolete parts and degraded condition from long dwell time. The award is subject to resolution of any timely filed protests. The requested amount of $4,998,460.08 is included in the FY19 and FY21 Capital Budgets adopted by the SCRRA Board of Directors. 12.P Contract MSOP158-24 - Train Operation and Maintenance Services - Alstom Transport USA, Inc. - Recommendation to Amend Contract A contract amendment is required to revise the MSOP158-24 (TOMs) contract commencement date from Tuesday, July 1, 2025, to Saturday, June 28, 2025, at 00:01, for the Train Operator Services component only. Implementing these changes over a weekend instead of a weekday will minimize disruption to passengers by supporting a more efficient, customer-friendly transition, which is our priority. Contracts, Operations, Maintenance, and Safety Committee recommended (5- 0) that the Board authorize the Chief Executive Officer (CEO) to amend Contract MSOP158-24 for Train Operation and Maintenance Services (TOMS), to:

Attachments (351)

Agenda Items

  1. 00:00:06 Safety Briefing Staff reviewed emergency procedures for fire alarms, earthquakes, first aid, and active attacker situations.
  2. 00:02:37 Public Comment The board noted written comments about the Angels Express and item 7A, then heard one public speaker discuss concerns for LGBTQI communities and minorities.
  3. 00:07:18 Marketing, Advertising, and Creative Services Contract Staff recommended awarding a three-year marketing, advertising, and creative services contract with a two-year option to Anyone Collective, and the board approved the item after questions about the single-agency model, performance metrics, and member-agency coordination.
  4. 00:14:58 Ridership, Revenue, and Financial Results Staff reported ridership, revenue, expenses, cash position, Arrow service results, FY26 budget timing, and year-end forecasts, with discussion of revenue shortfalls from Student Adventure Pass fares and effects of service disruptions.
  5. 00:28:47 May Legislative Update Staff reviewed local outreach, state budget and cap-and-trade developments, federal legislative priorities, and advocacy for Olympics-related support and regional rail funding.
  6. 00:39:25 Chief Executive Officer's Report The CEO reported on Bike to Work Day ridership, San Clemente stabilization progress, an emergency simulation, new real-time text alerts, a staff recognition, and a Japanese delegation visit to see the hydrogen train.
  7. 00:52:09 Board Members' Comments A board member reminded attendees that Memorial Day honors those who died in military service.
  8. 00:53:04 Chair's Comments The chair said the meeting would adjourn in honor of Memorial Day and those who died defending the country.

Transcript

Warning: This transcript is automatically generated by machine and may contain errors, including misheard words, misattributed speakers, and omitted passages. Always listen to the audio or video recording before assuming the transcript correctly reflects what was said. Do not rely on the transcript alone for quotation, reporting, or any other purpose where accuracy matters.
Good morning everyone. We're going to start our meeting with a safety briefing from Cody Nelson.
2. Safety Briefing
Good morning, Mr. Chair, members of the board, Mr. Kettle. Today's safety briefing is a reminder
that in the event of a fire alarm activation, we're all going to collectively exit the board
room to my left here. We'll go down the stairs and meet out in front of the Metro
Customer Service Center which is out of the building to the right and we'll wait for further
instructions. In the event of an earthquake, we're going to drop down, take cover, wait until the
shaking stops, we can do an assessment and then exit the building if necessary.
If we do exit, make sure that you're aware of your surroundings, stripping hazards, chairs,
backpacks, things of that nature.
In the event of a first aid situation, we have our first responders in the room from
LASD.
We also have an AED that's located across from the security desk in the hallway that
I can grab in the event of an emergency.
The event of an active attacker, the procedure to follow is run, hide, fight.
With that, if there's any questions, I'll take those now.
That concludes my briefing.
Any questions, directors?
Seeing none, thank you for the briefing.
If you will arise, the Pledge of Allegiance
will be led by Director Tam DeWinn.
Thank you, Chair Chaffee.
Yes, but please begin.
I pledge allegiance to the flag of the United States
of America and to the republic for which it stands,
one nation under God indivisible with liberty and justice for all. Please be
seated. Thank you. Madam Clerk, would you call the roll so you may establish a
quorum. Certainly. Director Nguyen. Here. Vice Chair Burksen. Director Spiegel.
Director Vargas. Director Molina. Second Vice Chair Tremblay. Director Engler.
here director Barger director Najarian here director Sandoval director Solis
director Olson director Allen here director O'Connor director presciado here
director McCallen here director Wapner director do tray director Marquez vice
chair Bergson chair chafee present we do have a quorum thank you madam clerk we
5. Public Comment
have any public comments we did receive one written public comment regarding the
requesting the Angels Express be brought back that will be returned or
emailed to the board after the meeting and then we received one written public
comment on item 7a as a protest to the item that will also be emailed to the
board after the meeting and we have one request to speak. Would you please call
the public speaker? Joseph Robert Andrade. Mr. Chair I did see the public
speaker slip turned in by a gentleman who I'm not seeing currently in the
audience. Well yeah not being here we'll move on. Now we come to our consent
calendar. I'm sorry, Dr. Spiegel. I do have a question. When there's an item or a comment
on an item on the agenda, are you going to bring that person up at 7A? Or do we read
that? I mean, if we're voting on something, I think of a public comment that took time
to write it, we shouldn't get the email after we voted. It's rather lengthy and at the discretion
of the chair, it could be read, but it's several pages long. It deals with the protest on that
Item and under the board approved policy the CEO is a final decision maker and that protest hasn't been fully resolved
Okay, okay
Let's try calling the public speaker one more time
Joseph Robert Andrade
Welcome, please approach the podium. Yeah, you sure have three minutes
I'm on a spiritual journey now.
I've had a very strange experience
and kind of understanding why we call this the City of Angels
and kind of rediscovering what this county is all about.
On my way here, I was late for the train and for Amtrak.
And the last street on the way, I said it was held, right?
And I was like, OK, well, I'm out of my mind.
Why would the train be held for me?
And the train was late.
And I heard my friend's voice say,
we held the train for you, and he's a conductor for Amtrak.
you know, maybe a friend helped me know a friend, a fellow traveler and
What I'm experiencing now is a really discovery of my own religious beliefs and spirituality
It's been a challenge for me
but what I wanted to say most importantly is I'm really fearful for the LGBTQI community and
also for the
minorities in this county. I think we've had an issue with
demons, like real-life demons
you know, things that we consider religious and things that I did not really think had that much power over the living.
And I'm just gonna say it very honestly, it dates back to white supremacy. It dates back to
things that my professor would say the veil of ignorance.
And I just wanted to start the discussion, the conversation, and the reason why I came here was all just happened, happened.
It was all chance.
My friend from the program. Let me spend the night last night. I've been sleeping on the streets for the past three days
and so
You know, I see the momentum changing for the good or the good for the people
But I am very very fearful for for us, you know or what it means to do a spiritual cleanse or religious cleanse
I'm also gonna say I have
Look into the meaning of what things and what you see
I'm just gonna flat out say it JD Vance saw the Pope and the Pope died
The Pope was very very good for the LGBTQI community. He could have done more
but he started the conversation and changed the direction and
These things matter and I just wanted to say that so yeah, thank you
Thank you for your comments
now
When you move on to our consent calendar would any director wish to hear any of those items separately?
Are there any abstentions?
I'd like to have a motion to approve the consent calendar
second England
moved in second it any objection motion carries. Thank you
7.A. Marketing, Advertising, and Creative Services Contract
We go on to our regular calendar. The first is item 7a
Sabrina Davis our director of marketing
It's going to share with her on this item
Good morning chair chafee and board members. I'm here today to present on the recommendation to a work contract
SP 627-2 6 for marketing advertising and creative services to anyone collective
next slide please as
Background Metrolink currently operates under a bench model for this these services, which has supported our campaign needs for the past several years
However, the existing contracts are set to expire on June 30, 2025.
In anticipation of this, we issued a Request for Proposal on December 19, 2024 to engage
a new full-service marketing partner.
The goal is to enhance integration and coordination across our brand, advertising, and media strategies.
Next slide.
One received the proposals and after a thorough technical and cost evaluation anyone collective
LLC was a Pasadena based firm had received the highest overall score.
Their proposal stood out for its creative strength media buying approach and relevant
private and public sector experience.
We're recommending a three-year contract with a two-year option for a total not to
to exceed value of 12 million,
eight million for the base term,
and four million if the option is exercised.
Annual expenditures will still be reviewed
and approved through our regular budget process.
We're requesting your approval to move forward
with awarding this contract to anyone collective.
Next slide.
I'm happy to take any questions.
Director, is there any questions?
Mr. Chair, if I could just reiterate,
as General Counsel just mentioned,
There were several protests that were submitted
on this contract, they have been investigated,
and then under the authority that's granted
to be by this board to either accept or deny those,
the protests, we concluded that they were not,
they were not warranted and they were denied.
Any questions here?
So please, Director Nguyen.
Thanks, Chair Chafee, thanks for the presentation.
I understand it's going from a bench model.
You mentioned on the presentation four active vendors
towards one contract.
And some of the things you mentioned
was increased integration and coordination.
But any losses in terms of drawbacks?
I could see that four active vendors, having that,
you could get a diversity, especially
in a creative marketing in terms of that.
In terms of, could you share with me
the thought process and consideration on that?
Yeah, one of the things that we've learned over the course,
We had a bench model with actually six agencies,
that was quite a lot.
All of them had expertise in different areas,
some were creative only,
some were more focused on experiential marketing.
What we found is that when our creative
and the success of our paid advertising
is really driven by the creative.
So we wanted to bring those two pieces under one roof,
so to speak, so that we're gaining the most efficiencies
when we're developing our advertising strategies.
By having the creative being informed
under the same agency as the advertising
and media buying plans, it just makes a lot more sense.
Having one agency of record is a very common practice
in the private sector, but having said that,
It does not exclude us in the future working with additional agencies to meet other needs
as necessary, and we are comfortable that this agency can accommodate all the work that
we will have for them.
Any other questions?
I've seen.
Oh, yes.
Go ahead, please.
Yeah, just I know that doing this outreach is very important for us.
What are the benchmarks that we're looking for as far as how do we know we're being successful
with their advertising campaigns. Yeah we have a lot of ways that we measure our
advertising efforts. We for every single campaign we do a recap report and we
share those reports with our member agencies. So a lot of the time we're
measuring effect by ridership but you're also going to see all of the KPIs
is related to paid advertising. So social media, engagement, clicks, distribution,
we have our email distribution lists are, you know, over 200,000 people. What are the,
we exceed open rates of 50 to 60%, which is way above the market, you know, measure average.
So we're, that's just one of many things. There's impressions, there's just a number of things like
I can follow up with a complete list of how we measure our advertising campaigns, but
we're very working with whatever agency that's part of their process too, is to be reporting
on all of the paid efforts that we have and then not only reporting at the end, but reporting
regularly throughout the course of the campaign and making modifications when we see that
something isn't working as well.
Okay, Director Speichel.
To go along with that, do we partner
with all of our agencies?
Or is it solely Metrolink?
Is there partnerships at all?
With our member agencies?
Yeah, absolutely.
We, for example, we work, we share our digital assets
for all of our campaigns with our member agencies,
asking them to expand our reach,
so to speak, on their channels,
as well as things like OCTA specifically.
They do a lot of localized marketing in the Orange County area and we coordinate with them
so we're not duplicating efforts or wasting dollars and they're a great partner to us.
RCTC as well is very engaged in the marketing efforts in their communities.
So we work together closely with them and we meet with the member agencies monthly specifically
about our marketing programs.
Thank you.
Any other questions? I see none. This is an action item. We have a motion to approve.
McAllen? McAllen, is there second? It's been second. Moved and seconded. Any abstentions,
objections? Seeing none, motion carries. Thank you. Mr. Chair, if I could, as Ms. Davis
departs the podium, I just want to make sure that we recognize and celebrate that Sabrina Davis
just finished her master's from Claremont graduate school,
from the Drucker School in leadership.
So I just want to make sure that the credit is given.
You can see where the leadership is coming out
in the presentations and the work she does.
So thank you, Sabrina.
Thank you.
7.B. Ridership, Revenue, and Financial Results
Now you're going to hear about the financial results
from the first nine months from Christine the Hat Wilson.
Thank you.
Good morning, Chairman Dutry, and members of the board.
I am Chris Wilson, Assistant Director of Finance,
presenting item 7B, the ridership revenue
and financial results through the nine months
ended March 30, 2025, and a forecast to year end.
Next slide, please.
This slide shows a graph of FY25 ridership
compared to the forecast for each month through March.
The red line is the forecast,
while the column showed the actual ridership.
The blue portion is regular ridership,
and the orange portion is the student adventure pass ridership.
Student adventure pass ridership has reached 35%
of the total ridership.
Next slide, please.
This slide shows ridership by month as compared to forecast,
and the percent of recovery as compared to FY19,
which is the last full year of ridership
before the COVID pandemic.
As you can see, ridership through March
was forecast at 5.5 million boardings
or a 62% recovery as compared to pre-pandemic.
Actual is 5.6 million boardings
over forecast by 0.1 million or a 63% recovery.
Looking at the third quarter, however,
you can see a significant increase in the forecast
while the actuals are not quite keeping pace.
Next slide.
This slide shows revenue which represents a different story.
Budgeted Fairbox revenue by March totals 32.8 million
or a 57% recovery while the actual is 29.3 million
under budget by 3.5 million, a 51% recovery.
Virtually all of the revenue shortfall
occurs in the third quarter.
The primary reason for the discrepancy
between the ridership and revenue performance
is the variance in the amount of per passenger
we are collecting for regular riders
as opposed to student adventure pass riders.
You will recall that we reduced the amount
we would claim from LC Top Grant
in order to finish out FY25 with the promotion intact.
The average fare per boarding for non-Student Adventure Pass is about $6.
The fare we are currently collecting from the LC Top Grant for Student Adventure Pass
riders is approximately $1.75.
That difference of over $4 when multiplied by the number of Student Adventure Pass riders
creates a shortfall of almost $1 million per month.
to this were the discounts we provided in response
to the on-time performance issues.
Thankfully, we have found additional LC top funds to use
in the fourth quarter, which will allow us to collect twice
as much per boarding in the fourth quarter,
which should cut the shortfall.
Next slide, please.
As to the operating statement,
before San Clemente total expenses are under budget
by $21.7 million.
Member agency support required through March is in surplus by $19.4 million.
Operating revenue is $47.5 million or $2.3 million under budget.
Expenses are $223.6 million or $21.7 million under budget
with the primary drivers shown on the slide.
Next slide.
This is the past two receivables which through March were at fourteen point three five and
They we are in the process of collecting them as I speak next slide, please
This shows the cast position of Metro link and as you see we are above the 50 million dollar
Threshold that we're supposed to maintain for the cash next slide, please
now arrow service
Next slide. This is the arrow arrow ridership performance as compared to forecast. As you can see, they are pretty pretty consistently
outstripping the forecast. Through March ridership forecast was 105,000 while the actual was
117,000 over forecast by 11%.
More than half the ridership is student adventure pass. Next slide.
This slide shows the fair box revenue for arrow through March the budget is
149,000 while the actual is
267,000 over budget by a hundred and eighteen thousand or almost eighty percent
arrow does not suffer a shortfall because the
Average arrow fare is about 225
While the average collected for student adventure pass is about a dollar eighty
Far less a variance than for a Metro link
When adding the outperformance of wordings arrow actually benefits
next slide
arrow operating revenue totals for
457,000 or 301,000 over budget
Expenses are eleven point four million or one point eight million below budget
Support is ten point nine million or two point one million under budget
Next slide with respect to the budget on April 25
2025 the board authorized the transmission of the proposed fi 26 budget to member agencies for their review and adoption
On June 13th, we plan to bring the fi 26 budget to this committee seeking your recommendation to the board to adopt a budget
bringing the budget to the board for adoption on June 27th as
As you see here, the total amount of the FY26 budget request is 0.2% reduction as compared
to FY25.
Oh, next slide, please.
As you see here, the total amount of the FY26 budget request is 0.2% reduction as opposed
to 25, worth repeating.
The next slide.
Forecast to year-end.
Next slide.
I want to mention that we create the forecast by contacting each cost center and requesting
their estimate of the amount to be expended by the year-end.
The operating budget for Metrolink is forecast to be 66.1 million or 0.3 million, 0.05 percent
under budget.
Pretty much what the actuals through March display, that's operating revenue.
are forecast to be $314.7 million, $13.5 million, or 4.1% under budget. Surplus is forecasted
at $14.1 million. Now, I just presented the March financial showing an operating statement
with expenses $21.7 under budget. How do we get from $21.7 to $13.5, a swing of $8.2 million?
The largest variances in trade operations were additional salaries, staff increases,
retro union pay, and end of contract expenses, including PTO payouts, total $5.1 million.
Materials also increased their over-budget position by $500,000.
Marketing reduced their under-budget position by $800,000, but still remain under budget.
services reduce their under budget position by 1.2 million. Next slide. Arrow
service is forecasted to receive a to achieve revenue of 637,425
thousand over budget. Total expenses are estimated at 16.6 million, 1 million or
5.6 percent below budget. Surplus is forecasted at 1.4 million. Next slide.
That concludes my report. May I answer any questions? Questions, directors,
supervisor, lady with a light, Spiegel? Having as many stoppages and challenge on
the tracks back when this budget was done. But does that affect the budget
because we have less trains, we have riderships that drop off, does that
affect the trains at all? I'm just curious. There is there is some effect,
Director Spiegel it's mainly when customers reliability matters and we
when we struggled in the beginning of the year with and the end of last year
and we had to make some adjustments we certainly saw some ridership dip that's
recovered now and we're we're really pleased to talk about the fact that
generally speaking our peak train ridership is creeping up ever so
slightly but our off-peak train ridership is really has really become a
success story, so we're going to see that, but it is critical that we have that
reliability. We have some savings right now because our trains are not going as
far south as Oceanside, so we do have fuel savings, that kind of thing, where
we have a major, you know, stoppage of some of our trains, so we will see some
benefit from that. And so it's a combination of those things, but we
certainly do see it from a ridership perspective. If we're struggling,
Sometimes our writers you know they they they respond and we got to be better
Thank you
Thank you. I see a light on but director North Jarian is out
We did have one speaker request that came in late on this item is so
entertain that right now, Mr. Daniel Garcia.
you're going to have 1.4 billion dollars in surplus.
That's the application.
So, how come the metal in this ball
cannot see what needs to be done in metaling?
Metaling needs to have a...
This is too … this is too …
and this is too announced and announced in this … in this … in this card.
What I mean, what I mean, what I mean, this is a dance …
the people who are there, people who are there,
they can … they can … they can hear the dances on meddling.
We cannot depend … we cannot depend on … on the operators,
on a metaling to not let us know.
And if we ever do this, we have to do that.
The ball is supposed to be 88 compliant.
Metaling is not 88 compliant on this show.
It means this show.
And now, you got it, you will use the ball.
I felt good, I felt good, you've got eyes.
So this is for the blind, the deaf.
So please, please, what is the way you have to manage this ceremony to do it?
Please, before, before, before, can I show you, show you.
So this week, it is non-compliant.
Please, I'm paying for your sake.
I allow this thing to happen, that's all.
Thank you very much for your time.
Thank you, sir.
Are there any other questions from the board members
on this item?
It's a receiving file item.
7.C. May Legislative Update
Well, now we're going to go on to our May legislative update.
We have Jeffrey Dunn, our government and community relations director.
Good morning, Jeffrey. Thank you members of the board. Next slide please.
In local matters, MetroLink recently participated in LA Metro's On the Move
writers program. On the Move provides older adults with the information and
confidence to travel
on fixed route transportation within LA County.
Community Relations staff provided a presentation to over 500 seniors on our
area of service,
the Fair Restructuring Plan, other fairs that help our service more cost-effective, including
the discount pass that allows low-income persons with a California EBT card to ride anywhere
on the system for a 50 percent discount. This represents the latest in our continuing efforts
to get the word out to expand our future passenger base as we see ridership gains following the
enhanced service schedule implemented last year. Next slide, please.
According to state matters, Governor Newsom released his May revision to the proposed
fiscal year 25-26 budget earlier this month.
In January, Governor Newsom had presented a balanced budget with a rejected surplus
of $363 million.
Since then, following the wildfires, the fiscal outlook has worsened, and the May revise now
projects a state deficit estimated at $12 billion for the upcoming fiscal year.
Fortunately for transportation, the May revise maintains the state's proposed $1 billion
investment in the TIRCP program originally provided through SB 125.
The Governor also released his proposal to reauthorize the cap and trade program and
rename the program to cap and invest.
The Governor is asking the legislature to extend the program to 2045.
The plan proposes to invest beginning next year $1 billion annually in high-speed rail
and 1.5 billion annually in Cal Fire from the GGRF.
The plan is silent on all other investment priorities,
including the existing continuous appropriations
for TIRCP, from which Metrolink has received significant project
grant funding, and LC TOP, the program that
funds our student adventure and low income discount passes.
We will advocate the continuation
of these successful programs through this state budget
cycle in addition to Metrolink's advocacy for setting aside a portion of GGRF funds
for regional rail operations, thereby reducing our reliance on member agency support to fund
our operations.
And as well for GGRF funding to projects that directly tie to high speed rail.
Building upon the advocacy messages Metrolink shared earlier in Sacramento this month prior
to release of the May revise during the California Transit Association legislative conference.
We will continue to press the need also for Metrolinx Olympics needs, which are acknowledged
in the May revise with a $17.5 million funding allocation for Olympics advanced planning
and preparedness.
Although Olympics infrastructure support has traditionally been provided principally by
the federal government in prior U.S. Olympic games, the state does play a role, and our
state as the fourth largest economy in the world certainly should and we
anticipate will provide more support as the games draw nearer. The state Senate
has recently formed a special committee on international sporting events to look
at how state resources may be allocated to support such events. Members from
Southern California and the Metrolink Network include the committee chair Ben
Allen of Santa Monica and Senators Bob Archuleta, Maria Elena Dorazo, Lena
Sabrina Gonzalez, Susan Rubio, Tom Muhnberg, and Suzette Martinez Valladares.
We have met with the offices of Senators Archuleta, Durazo, and Muhnberg this month, and will meet
with the others as their calendars allow as the budget process moves forward.
Next slide, please.
In federal matters, I wish to report that staff has followed up with the House Transportation
and Infrastructure Committee in submitting Metrolink requests for surface transportation
authorization bill to be considered this year the directives that are mentioned in your
report. Namely, expanding full eligibility of regional commuter rail projects to
the Krissi competitive grant program, currently available only to inner city
rail projects or those with the direct nexus to inner city. Second, a broader
more expansive definition of regional rail in statute that reflects the true
nature of the evolving level of service beyond just commute riders and, as such,
potential expansion for future funding opportunities. And last but not least,
codifying and statute a mandatory FTA waiver on the repayment of federal interest and locomotives
purchased with federal dollars when retired prior to the end of their useful life and
when being replaced by cleaner locomotives.
Earlier this month, MetroLink submitted legislative language effectuating each of these proposals
to the TNI committee.
In addition to policy rationale for each, we have shared these with the Commuter Rail
Coalition, the national association dedicated to federal advocacy exclusively for regional
and commuter rail operators on whose board our CEO sits.
These priorities benefit all of commuter rail nationally.
Next slide, please.
We followed up with direct advocacy on the Hill this week, where Chief Strategy Officer
Paul Hubler, myself, and Management Analyst Julie Nieto attended the American Public Transportation
Association's spring legislative conference where we were privileged to be joined by Metrolink
board director Tony Tremblay who was in DC on behalf of his city to help lead us in carrying
our messages with members and staff as well. Our meetings included direct one-on-ones with
California representatives Pete Aguilar, Julia Brownlee, Ken Calvert and Young Kim as well as
staff to the offices of Senators Padilla and Schiff, and Representative Dave Min.
Every California member we met with sits on an authorizing or appropriating committee
of jurisdiction for rail.
We also met with staff of Transportation Appropriations Committee Chair Steve Womack of Arkansas,
as well as member meetings with TNI Transit Subcommittee Chair David Rauser of North Carolina
and TNI Rail Subcommittee Chair Daniel Webster of Florida.
In all meetings, we led off with Metrolinx' Olympics needs previously shared with the
administration and advocated for by our CEO when he was back in Washington in February.
Director Tremblay, as our board member serving on its Ad Hoc Olympics Committee, was the
perfect official to lead and punctuate this request.
2025 is an important Olympics year for Metrolinx, as you know, because everything takes longer
in rail.
If we are to truly serve as the regional backbone of Southern California's transportation system,
supporting the world to Olympic venues during the games. We need federal support to begin
now to be ready in time for 2028. There are two vehicles, the Homeland Security Appropriations
Bill and the T-Hud Appropriations Bill that likely will move first in 2025 to provide
support for Metrolinx security, rolling stock, capital, and maintenance needs. The Surface
Transportation Authorization Bill, too, will be considered. This year, though its timing
less certain but it too provides an opportunity for support in the years leading up to 2028.
Our CEO is back in DC next month to amplify and carry forward these messages and others
with the annual Mobility 21 federal trip in June and we will keep the board continuously
apprised of the moving pieces this year.
Next slide please.
What you see here is our meeting with Representative Young Kim on the right and perhaps more important
Director Tremblay and Chief Strategy Officer Huber, pursuing bonbons and escargot at the
French ambassador's residence while learning what went right and wrong with Paris Olympics.
I'll let Tony fill you in more on that at the next meeting.
Next slide, please.
This concludes my report.
I'm happy to take any questions.
Director, questions?
The man with the light.
The man with the light.
Thank you very much Mr. Chair. My chance, trembling, was in Washington. My question
is why wasn't someone from the Ad Hoc Committee invited to go with the trip
to begin with? And the second part of my question is there are planned meetings
with state legislators. I just heard you present. Are we going to ask members of
the ad hoc committee to join that those meetings. We did ask members of the
ad hoc committee to accompany us on this trip including Mr. Watner who was
unfortunately unable to attend. With respect to state members we are going to
seek member meetings probably virtually rather than in person at least
initially for the members that are on that select committee. If we go up
Absolutely, certainly we can request for ad hoc members to come with us.
If I could, Mr. Chair, in response to Director McAllen, I did speak with Director Trembly
after his busy day of meetings, and he reiterated that there would be great value of us regularly
darkening the door in D.C., and so we will be looking towards that as we get from a timing
perspective particularly with the two appropriations bills that Jeff referenced
so there will be another opportunity to have the appropriate members of our
board also participate in that. Regularly what the door? Darken the door. Regularly
darken the door. Sorry that must maybe that's a generational comment or
With that are there any more questions?
None. I'd like to congratulate Director Tremblay for representing us and the good job he did
and also congratulate him in getting in every picture.
So thank you for the update and appreciate your effort in trying
to follow everything that's going on.
8. Chief Executive Officer's Report
Okay, Chief Executive Officer's Report, you're on.
Thank you, Mr. Chair, let's go to the next slide.
So, we have a couple of good news stories that we want to share.
We had a bike to work or bike to ride day on May 15th just a little over a week or so ago.
Our conductors counted nearly 1500 bikes on our trains on that day
with the San Bernardino Line counting
for 30% of the total bikes.
So that was a day where people were able to ride,
if they brought their bike, they need not have a ticket.
And so we were really pleased to see that.
And as a regular user of the train,
we're seeing more and more scooters and bicycles
on our trains to the point where we're
having our conductors having to make sure
that if we don't have space where we can have a bike safely,
they're being directed to another car.
So it is something that is very real for that first mile,
last mile portion of a trip from our trains.
Next slide.
Some updates on San Clemente and our stabilization efforts.
These are photos from earlier this week.
You can see the progress being made
with the placement of riprap.
And the work is continuing.
This emergency work is continuing.
It is a seven day a week operation.
We do close down at night to allow BNSF trains
run through two or three trains in the middle of the night to run through the corridor at slow
speeds. It is a meticulous effort. While you see big heavy-duty equipment in these pictures,
they are having to – it's very specific the way that this has been designed to make sure that we
protect the corridor. We are on schedule and the project should be completed on time in early June.
Next slide, please. I'm going to just – we reported to the board and through committees
that we did have our full-scale emergency simulation
that we're required to do annually.
We held it just a week ago on May 18th at the Covina Station.
We have one of our members of our board,
Director Allen, was in attendance.
So, I will let him speak to that.
But it was a very successful event.
Very pleased with how it went.
And we had first responders from all over the region
that were participating in it.
My thanks, I'm gonna ask him to stand.
Eric Smith, our emergency trainer,
you know, if you haven't seen Eric,
he is the one that presented our board workshop.
This was Eric's baby, and it went extremely well,
very smoothly, and as we're supposed to,
we have lessons learned.
And we were fortunate in this case
that we were able to do the drill twice.
So we learned some things after the first session,
brought it back in the second session,
We threw a few twists and turns into the exercise this year.
The board is aware that we have signed on
to various measures and programs.
But we had some characters that were related to you
that were doing.
Help me, but I'm blanking on it now.
So Eric's son was apprehended, but we engaged early
with the human trafficking program
that was supported by USDOT.
And so that was a wrinkle that we threw into it,
along with a few other things.
Next slide, please.
Actually, Director Allen, if you want to speak to that,
well, that item's up.
Yeah, just briefly.
Actually, board member Marty Semenov played a victim.
And he did a great job.
You should get an Academy Award for your performance.
I want to say one of the great things
was the teamwork that was exhibited
between the MetroLincoln employees
under the direction of Eric and Cory.
Hillary, I don't see Hillary in here this morning,
but he was out there.
But LA County Fire, Covina PD,
Los Angeles Sheriff's Department,
and we had our emergency services coordinator
out there as well, Mike Kellman.
It was an excellent activity.
And I want to thank Metrolink for picking Covina
to conduct the emergency operation.
So well done.
Thank you, Director Allen.
And Director Vargas will recall that last year we
were out in Paris where we were able to do the similar exercise.
So we do try to sprinkle it around the region if we can.
Yeah, right, so here we go.
So, this is a really excited about this new program.
Director Spiegel got sort of a tip on this one,
as I presented to the RCTC, the commission last week,
talking about the work that we're doing
at Metrolink right now.
But starting today, we go live with real time
text alerts to your phone.
This has been something that if riders of our trains
would happen to be on Twitter or X or something like that,
That's how they would get their announcement.
But going forward, a rider can subscribe to a train
that they regularly ride so they can
get direct to their phone text alerts on the situation
going on with their train.
It may be a platform change.
It could be an incident on the railway
so that our riders are getting real-time information
without having to go searching for it.
So you can see the real-time information with track changes,
delays, cancellations, and so forth.
It'll be multi-lingual.
So for those of you that are regular riders of our trains,
and you would like to sign up and subscribe to this,
I have it.
It's been working extremely well.
We had a few of our Metrolink staff
that were guinea pigs as we tested this out
over the last month or so.
Again, this has been an operation that Sabrina Davis
has been a big time leader on, along with Scott Johnson,
on our customer experience team to make sure
that we are doing the best we can
communicate with our customers. We will help you sign up. So after today's board
meeting, we will have a few members of our staff in the foyer that can get you
signed up so that your trains that you subscribe to will send you messages when
when the need arises. Next slide. Another, you know, we like to honor the members
of our staff that are recognized at various levels.
Last week, a member of our communications team, Sandy Martinez, was recognized by the
National Association of Railway Businesswomen.
Sandy does work out of our Pomona offices, the dispatch center.
She's our communication supervisor.
So she was recognized by the National Association, so we just want to celebrate the fact that,
Again, a member of our Metrolink family.
And the National Association of Railway Businesswomen,
they really focus on giving back to the communities.
So the recognition of this is not just her railroad work,
but the work she does throughout the community.
So it's very cool recognition for Sandy.
And we've done a lot.
We've done everything we can to make her blush
as we continue to celebrate this accomplishment and recognition.
So again, great job by Sandy representing us.
Next slide.
And then just yesterday, we had the privilege
of hosting a Japanese delegation from the Ministry
of Land, Infrastructure, Transportation, and Tourism,
Emlet, from the Japanese Ministry.
You can see we took a train with, I don't know,
it was probably 50 members of the Japanese delegation
from LA Union Station on the San Bernardino line
out to San Bernardino,
where we then transferred over to the new hydrogen train
that will be going into revenue service later,
sometime this summer.
We're close to having our final testing done
on having the hydrogen vehicle ready to go.
A very successful event.
My thanks to the entire Metrolinx team
on making sure we had a very smooth trip.
We were joined in San Bernardino by Directors McCallin and Marquez to recognize and host
the Japanese delegation where we shared about really SBCTA's Herculean effort to bring the
ZEMU or hydrogen train to Southern California and will be the first in the country, the
only in the country to be operating here in the not too distant future. So that was just
a very well done event. And I think, you know, I'm of course a little bit, a little biased,
but I think we shined brightly yesterday both on our, the Metrolink trains that went so
smoothly and the opportunity to ride on the Zemu train as well. So next slide I think
that is it, Mr. Chair. So thank you for a few minutes to hear my comments. I'm happy
Take questions if there are any director Marquez
Just wanted to say thank you. It was an excellent event yesterday, so again. You did say the hydrogen train
It's the first in the in the nation is that correct that is correct, sir. Yes, I want to say thank you
You made us very proud yesterday. Thank you, sir. Appreciate it
After a callow we have any comments you as your great observation and worldwide traveler as well
No, it was it was great
Riding the ZMU it was a smooth, real smooth ride at you know, it's the really the future of
Railroading I think we need to especially in this area
Not back east where they've got all these catenaries and just pollute the sky with with wires
but here in California, I think it's
Future and CalSTA was there and of course they are going to be
running these hydrogen trains in the Central Valley and up north in a
with a four car
configuration and also an eight car configuration
so
It's something we look forward to and
Hopefully we'll be able to get one of those
Kelster trains they're asking for partnerships to be able to
to bring one down here and run it on our tracks and see how it goes I
Wasn't the picture you can't see me, but I
Wasn't in the big picture where you could see my face, but you could see the back of my head and the other ones
You need Tremblies publicist
There's a great event
Thank you for your comments and
Just real quick Mr. Chairman for those of us that are familiar or have observed the Japanese rail system
We generally see overhead canton area everywhere in the Japanese system
And so what was interesting to me why were they interested in coming to California and seeing the hydrogen train?
And they shared a map that shows in Japan everything that is electrified which is massive
But their rural areas are not electrified
so a significant chunk of their rail system is operated also operates on
diesel and why they were interested in hydrogen because they don't expect to go
overhead canton area across the whole country so in their rural areas they're
exploring the notion of using hydrogen instead of electrical directors Forrest
9. Board Members' Comments
open for any comments I'll just remind everybody that this weekend is Memorial
weekend with Monday being Memorial Day, you remind you that Memorial Day is not
for veterans. It is a day we honor those who have passed, died. So going to a
cemetery is an appropriate event or any other honoring those that have served
our country. Even though every day should be for veterans, this is a day that even
a veteran kind of cringes. Are there veterans here? I don't know if that's
true for you, but you cringe when someone says thank you for your service on Memorial Day.
So it's just kind of a reminder, but I hope everybody takes some time and does something
in the community, whatever it is, to honor those that served.
10. Chair's Comments
Thank you for that reminder, and I think we'll simply adjourn the meeting in honor of Memorial
and those who gave their lives in defense of our country and defending our
freedoms. Now we have our closed session. Council, do we need a closed session?
Thank you chair. The board will now go into closed session under agenda item 11a
11b as described in today's agenda. Thank you. Thank you. Take a brief break and
then we'll readjourn in our closed session room.