Good morning everyone and begin with our safety briefing by chief safety
security compliance officer Hillary Conzel. Good morning, Director Tafee and
the board of directors. We are at one Gateway Plaza in the metro boardroom. In
the event of a fire, we'll be notified by a fire alarm. If that should occur, we'll
exit the room collectively and we'll head down the stairs. We'll meet at the
Metro customer service area I will be the last one out of the room and we if
anybody needs assistant evacuating please let me know. In the event of an
earthquake we'll take cover under the desks if possible wait for the rumbling
to stop and then we'll assess the situation and see if further evacuation
is necessary. When evacuating just be mindful of your tripping hazards there's
some chairs and you know then weigh bags backpacks and that sort of thing and
then first aid in the event of first aid situation we do have our LA County
Sheriff first responders in the back of the room there is an AED at the security
desk they'll retrieve that and call for assistance if necessary in the event of
an active shooter we'll deploy the run hide and fight tactic thank you thank
Thank you for the briefing.
Now, Director Bergson will lead us in pledge of allegiance.
Please place your right hand over your heart and begin.
I pledge allegiance to the flag of the United States of America, and to the Republic for
which it stands.
Madam Chair, will you call the roll so we establish a quorum?
Certainly.
Director Nguyen, Vice Chair Bergson, Director Spiegel, Director Vargas, Director Molina,
Second vice chair Tremblay. Director Engler. Director Barger. Director Najarian.
Director Sandoval. Director Solis. Director Olsen. Director Allen.
Director O'Connor. Director Presiado. Director McCallin. Director Wabner.
director do tray director Marquez chair chafee president we do have a quorum
thank you madam clerk now move to public comment do we have any public members of
public we'd like to make a comment we have received a few written public
comments that will be emailed to the board after the meeting one from Lucas
Chang regarding the schedule one from Brian Yennedy regarding the
electrification of the Antelope Valley Line and one from Grady U regarding
fair change impacts on the flyaway bus and the rail-to-rail agreement as well
as Olympic readiness and we do one request to speak. Thank you Madam Clerk.
We'll move on. Oh so I will call up Kevin Dedicatoria. Sorry there is one, can you go ahead.
Nobody's rushing up to the podium. All right now we'll go on to item which is a
public hearing adoption of our budget and
The annual contract authority and a salary realized
Resolution and some operating forecasts for four years. So
I'm going to open the public hearing
We have a presentation by Christine Wilson our assistant director fine and that is quite a half this morning
Please go ahead
Okay, thank you
In this present next slide, please in this presentation
I'll be covering our challenges the fy-26 budget assumptions the proposed fy-26 operating budget the proposed fy-26
Capital budget and annual contract authority expenses next slide, please
Our primary challenges are the ridership is only growing slowly while operating expenses increase every year
This is particularly acute for Metrolinx since like many infrastructure heavy enterprises 60 percent of our costs are fixed
Number agencies are projected to provide seventy eight percent of operations funding
We are keenly aware of the burden this place as I remember agencies and are dedicated to doing everything in our power
To reduce and ease that burden next slide, please
The assumptions in the fy-26 budget service with according to the optimized service schedule
Revenue based on Sperry capital forecast no fair increases new fair promotions
student and youth 50% discount and the fair restructure
expenses
Contractor increases only as mandated by agreements for FTE headcounts added to
CFR for 245 and 246 assistance
One legal and one outside 20 that will be funded by Metro
3% merit 3% COLA new regulation support for CFR 245 and 246
2028 Olympic readiness
Expenses and no special trains next slide, please
This slide shows the spirit capital KPMG forecasts that we've been using for our ridership projections next slide please
Now to the operating budget next slide
the budget for FY 26 consists of revenue of
76.9 million an increase from 25 of eighty nine point eighty eight point nine million or 13 percent
expense of
352.4
million an increase of 20.4 million or 6.1 percent compared to FY 25
member agency support
totals
275.5 million an increase over FY 25 of 11.5 million or
4.4 percent
next slide
Here is a chart showing operating expenses
From FY 19 through FY 26 and you can see the growth there
Next slide.
This slide shows operating revenues, FY19 through FY26.
As you can see, next year, we expect to be at three quarters of the way back to pre-pandemic
levels.
Next slide.
This is a pie chart displaying the FY26 budgeted 275.5 and operating support by member agencies,
and it shows what each person's share is.
Next slide.
This side compares FY25 to FY26, requested income, expense and support by member agency.
The variances are presented in dollars and percentages.
As you can see, the member agency support for the operating budget alone is 4.3%.
Next slide.
This slide shows only those expenses making a major contribution to the variance and expense,
versus 26.
To explain just a few, train operators reflect a full year
as opposed to only nine months of the optimized service
and includes a major settlement from the SPART unit.
Materials are materials needed for rolling stock maintenance
and reflect the increased cost of FY25s
that are now out of warranty.
Maintenance of way is also reflective of union increases.
Next slide.
Now the capital programs, next slide.
For state of good repair, the FY26 budget request
is 137.5 million, a decrease from FY25 of 22.1 million
or less 13.9%.
For new capital, the FY26 budget request is 15.6 million
or an increase of 9.7 million or 164%.
Next slide.
Here you see the budgets for state of good repair
and new capital from FY19 to 23.
These charts reflect the emphasis on state of good repair.
Next slide.
Okay, the FY26 budget request is 137.5
and this pie chart shows each member agency's share
of the total 153.1 million in capital program support,
which includes most state of good repair and new capital.
Next slide.
I thought this slide shows where it all comes together.
People enjoying their ride on our trains.
Next slide.
Here we have a comparison.
Next slide, please.
Here we have a comparison of operating and capital requests
by member agencies for 25 and 26.
As you can see, the comparison shows reductions
for almost every member and overall an amount
that it's actually 0.2% less than last year.
And the reason that Metro is higher,
it has an additional $5 million in capital programs.
Next slide.
We are focused on growing ridership and revenue
in our optimized service, which was arrived at
through the encouragement of our member agencies.
Consultants say it will take about two years
to see the full benefits.
Our four-year forecast adheres
to the sustainability principles discussed
with our member agencies,
that year-over-year support growth will not exceed 5%.
Next slide.
This budget also includes a request and approval
of the FY26 annual agreement contract authority extensions,
excuse me, and includes items
that are original equipment agreements, maintenance,
repair and operation software licenses,
administrative and operating services
and communication network tower agreements
in the amounts that are shown on this slide.
Next slide.
Staff requests that the committee recommend to the board
the adoption of the Metrolink FY26 budget,
the approval of the four-year forecast
and annual contract authority extensions,
and the approval of the FY26 salary resolution
that was included in your packet, and the supporting documents which underpin the salary
and benefits included in the package that you received.
As stated by Chair Taffy, the budget has been approved by each of the member agencies and
passed by their respective boards.
That concludes the MetroLink budget presentation.
I will now move on to the ARAL budget presentation.
This is concerning the adoption of the proposed FY26 aero service budget.
Next slide.
For the aero presentation, I will be covering the budget assumptions and the actual proposed
budgets.
Next slide.
Service level will be at the current aero service schedule.
Ridership and revenue is based on Sperry capital KPMG forecast.
No fare increases.
New fare promotions.
use, 50% discount, and impacts of our fair recructure.
Expenses will be only as contractor increases mandate,
elimination of two arrow-specific FTE KED counts
that were transitioned to Statler,
and new federal regulation support for CFR 245 and 246.
Next slide.
This is, once again, this very capital ridership forecast,
924 through 529.
Next slide.
Now we go to the operating budget.
This budget is forecasting operating revenue
at .7 million, an increase of .5 million,
or 225% from FI25, expense at 18.2 million,
an increase of .7 million, or 3.9%.
Member agency support of 17.5 million,
an increase of .2 million, 0.2 million, or 1.2%.
Next slide.
This shows the operating expense
from start of revenue service to the FY26 budget.
Next slide.
Operating revenue, once again,
from the start of service to the FY26 budget.
Next slide.
Now we have the capital program.
Next slide, please.
State of Good Repair Program totals .50 million.
New capital is .42 million.
Next slide.
We see here the capital program for the last two years.
Next slide.
Next, next.
Arrow was entirely funded by the San Bernardino County
Transportation Authority.
The budget was constructed in close collaboration
with SBCTA, and Arrow is entirely funded by SBCTA.
The SBCTA board has approved this budget.
Staff requests that the committee recommend
to the board, the adoption of the FY26 aero budget.
And Mr. Chair, just a quick clarification
on Ms. Wilson's presentation.
The committee doesn't have to recommend anything
to the board, because the board's.
Oh, sorry.
Her script was written as if we'd had committees,
so just that quick clarification.
Thank you.
Thank you, Chris.
All right, with that, are there questions that we have?
Any board member have a question?
Yes, Supervisor Siegel, I mean Director Siegel.
That's why when you said it, I keep hearing it wrong today.
Okay, question on the student fairs.
And you may not know that I don't know who knows it.
What is the percentage of ridership of the students
prior to us now going to charge?
So currently students make up,
it's somewhere around 30 to 35% of our,
have been our daily boardings.
Prior to the launch of the Student Adventure Pass,
it was hovering around 20%,
so it certainly drove ridership up.
The Henning Eichler, who handles all of our data
in analytics, has done some modeling,
and we believe that we may drop a few percent
with the drop up to a 50 or 75% discount.
Students will still be eligible to take advantage
both the 50% discount as well as the mobility for all program that allow, that brings the
discount even down further.
So you know, we don't think we're going to see a significant drop, but time will tell
on that.
Director Spiegel.
The only reason I'm concerned is if we gave no notification and families are preparing
for the summer sessions and fall sessions, I'm hoping that it's not going to be a financial
burden on those families that may be challenging without any pre-notice.
That's my only concern.
We've certainly gotten the word out.
We've done it in several different iterations.
First with the announcement that we were at the grant funding that was no longer available
or sufficient to cover it, so that was a couple of months ago, and then as part of the fair
restructuring that we are starting as of July 1, we've also further communicated it.
So we're not going to say we're going to hit everybody,
but we think we did a pretty good job of covering just
about any place we could.
And then on the special trains, I
thought the agency paid for those
if we had requested a special train.
We will do that as a one-off.
We had had a special train's budget generally right
around half a million dollars every year.
That was just sort of for the good of the system.
In working with the member agencies,
there was a desire that if we want to do something special,
we'll just do it agency by agency.
And that was at the request of the member agencies.
Right, just to make sure that there's still,
because it says stopping all special trains,
but if an agency wants to pay for it,
we can still do it.
We will gladly take a member agency's money and run trains.
Just wanted to make sure, just in case,
some of these with the Dodgers and the Angels,
if they want to have those trains.
Absolutely.
Thank you.
The lights all seem to be on this side.
Dr. Tre?
Oh, thank you.
Regarding the ridership forecast for both systems,
I know KPMG put this together a couple of years ago.
Staffs feel comfortable.
These forecast numbers are still good,
or does it require some tweaking in the future?
We actually, Director DeTrey,
did some tweaking earlier this year.
He did, okay.
We're constantly under sort of evaluation.
We are working with KPMG Sperry Capital
on some of the assumptions they've had,
even as we speak.
So I think we're gonna be,
there's gonna be fine tuning
as it really particularly optimized schedule
over the course of the next six months
to make sure we try to get this forecast dialed in.
It is a bit of a, you know,
it's very much a forecast
and assumptions are great until they don't come true.
So we are sitting on top of it with that consultant.
Okay.
And then I assume on the Metrolink,
the Samuel SBCTA, the Samuel County Sheriff's,
Department is in the budget. Am I correct? Yes that all amount is in the budget. Thank you. Yes
Okay, we'll just keep going down the line here. Thank You. Mr. Chair going back to the student fair
What was the reasoning this past couple years where there wasn't a cost for was it it was because grant?
Was actually yeah director Marquez. So we had we had a grant
Effectively a state grant that most all of our agencies get called the low-carbon transit operations program
LC top and we were using those dollars to fund both the mobility for all program as well as the student adventure pass
and
That was somewhere on the order of about five million dollars annually Chris. Give me a head nod if I'm about the right number. Yes, and
so the problem we had is we
quickly learned we were blowing past that as covering the cost of the student-rider.
So then we had to go back to the member agencies and say if we're going to get full coverage of this, because we need the fair revenue,
free is great, but this the five member agencies have an expectation that we are bringing in revenues.
Member agencies were at a point where that they could not cover that cost as well, and it just became
We the grant just couldn't cover it and so we had as it is the grants gonna cover a small portion of but not the
Full portion as we had done originally. So my question basically what I really wanted to find out the grants not going away
It's still there. Correct the costs or was just a little bit more than we anticipated
Correct. So the 50% what's the average? What is the student gonna be paying? We have those rough numbers
It's gonna it depends on their it's gonna depend on their fair media
So if they have if they're a monthly passholder, it'll be 50% of wherever their monthly passholder from the Pomona station to Los Angeles
Or Cal State LA if it's under the new fare pilot. There's a $15 day pass that's system-wide
So it would be seven dollars and fifty cents if they were going to take advantage of the day pass for just that one
Day, so it'll depend on their
What fare media they use sir? Thank you one last question regarding Samberg adino euro line
My question is Zemu is going to be going into operation, which is a hydrogen train
They know hydrogen and it's probably be more expensive as far as fuel. I would imagine that budget discovered the adjustment
Yes, we worked very closely with San Bernardino on coming up with the numbers
Okay. Thank you so much. Appreciate that
I don't see any more lights on but I would ask our CEO
About meeting with all five of our member agencies and I'd like to thank you for that
and we do have approval from all five of them.
I would like you to come back to my agency
to answer some more questions in due course.
I thank you for that.
This is a public hearing.
Do we have any public commenters?
I have not received any written public comments or any requests
to speak for our two public hearing items.
Thank you for that.
With that, we're going to close the public hearing
and move forward for resolution.
First of the regular budget, which is item A, do we have a motion?
Any objection or abstentions?
Seeing none, motion carries.
And let's go on to the next item, which is part of the budget.
That is our arrow service.
May I have a motion?
Wouldn't you say it?
Any objection or abstentions?
All right.
Seeing none, motion carries.
So thank you all and thank you for presentation
Thank you Chris and and again
Board members. Thank you for the the action today and my thanks to the five member agencies
The development of this budget is not for the faint of heart
It takes a lot of interaction a lot of work between ourselves the budget team finance team and all of the finance teams from the member
agencies, so
It is it is a partnership
And it is very much appreciated. And so thank you. Mr. Chair appreciate that opportunity just to say
All right. Now we have our regular calendar first item is approval of our meeting minutes of May 23rd
any
Corrections uni. Is there a second? All right, we move right on and
Okay, no any abstentions objections seeing none motion carries. Thank you
Okay, now our renewal of our insurance program we have Rosa Raymond Barrera our senior counsel for risk management
Good morning chair Chafee and board members
Also here with me today is Sharon castaneda our my colleague legal counsel and associate risk manager
And we also have Craig Morris from Marsh our lead
Broker here today as well
The authority utilizes insurance to mitigate its operating and other major risks and board approval is needed to
Renew the insurance programs policies of insurance for fiscal year
2025 and 26
This year we have successfully
Negotiated insurance coverage for the insurance program at a total cost not to exceed
17 million eight hundred thirty thousand five hundred forty seven dollars and fifty nine cents
Which is a three point three five percent increase from last year and is within the budgeted
projected budget for fiscal year 2526
operating general liability
Part of the insurance program came in at four point five percent increase this year
after seeing four years of flat renewals
Property the other significant part of the program
the renewal cost is flat and we will likely see a decrease in premium cost when finalized.
Total insurance program costs is under the projected budget by 1.4 million.
Next slide.
The operating general liability insurance coverage protects the authority in the event of a catastrophic incident causing bodily injury and
or property damage to third parties. At underwriter meetings held earlier this year,
We highlighted Metrolink's industry leadership with its commitment to safety through its use of positive train control
crash energy management cars and
ongoing training testing and monitoring of operators and crew members
next slide
This slide depicts the operating general liability amount of coverage with the primary layer of insurance of 20 million
At the bottom that sits above a five million dollar
self-insured retention
Followed by seven excess layers of insurance totaling
347.5 million dollars in coverage and includes 24 million above the federal liability cap
to cover non passenger bodily injury and property claims
The total cost of the operating general liability tower including additional liability
coverages is $9,510,290.77.
Next slide.
This slide shows the additional liability insurance
coverages that we have procured.
Terrorism liability coverage at $263,109,
matching last year's premium.
Employment practices liability at $54,150.18,
a significant decrease from last year's premium,
with equal amount of coverages and pollution liability
at a cost of 91,741.47,
nearly matching last year's premium.
Next slide.
The next part of the insurance program
consists of property insurance coverages
which protects the authority's assets
such as its maintenance and office facilities
and rolling stock in the event
of significant damage or destruction.
At this time, the property coverage of $100 million
is not yet complete, but we are confident
it will be in place for timely renewal
on the best terms and condition
at a not to exceed cost of $6,603,520.
Nearly flat compared to last year's cost.
And based on a recent update this morning,
our expectation is property coverage for $100 million,
will the cost will be just under six million.
So our negotiations have been continuing
and cutting in our favor.
Additional property coverages include standalone terrorism
at a cost of 91,503.12 and boiler and machinery coverage
also known as equipment breakdown coverage
at a cost of 120,645.
The total not to exceed premium
for all these property coverages is $6,815,668.12.
Next slide.
The final part of the insurance program
includes coverages for fleet automobile, worker's comp,
public officials, errors, and omission,
commercial crime insurance, and cybersecurity and privacy risk.
The total premium for these five coverages
is $1,504,588.79.
Next slide.
It is recommended the board authorize
the chief executive officer to purchase insurance
for the 2025-26 insurance year for a total premium cost,
not to exceed $17,830,547.59, consisting
of liability-related insurance at a cost of $9,510,290.77.
property-related insurance for a not to exceed cost of $6,815,668.12
and other insurance coverages identified at a cost of $1,504,588.70.
Thank you, this concludes my presentation.
I'm happy to answer any questions.
Thank you, Vice Chair Bergson.
I have to ask, what is the insurance for pollution?
There was some slide that said pollution.
Can you expand on that, please?
Our pollution coverage protects against environmental spills,
anything related to environmental damages caused
due to that type of incident, and so.
It just seemed odd, I was trying to figure out
if somebody was going to complain that they coughed
because they walked by one of our trains or something.
Right, and of course, cleanup costs
related to those types of spills that
can occur out on our properties.
Right, any other questions?
I don't see any other lights on.
Do we have any public requests?
I have not received any written public comments or requests
speak on this item. All right, may I have a motion? Oh sure, go ahead. Yes, Mr. Tremblay and Mr. Marquez.
I missed a second, sorry. All right, any objection? Repentions? Seeing none, motion
carries. Thank you for the presentation. Mr. CEO. Yes, Mr. Chair, in the interest of
time, there may be an opportunity, as I think this board is aware, we have a
number of annual contracts that come up that allow us to conduct our business
over the course of a year and if I could make a suggestion obviously Mr. Chair
your discretion and the board's discretion but item 7c is an annual
contract with Herzog there are track track a signal and maintenance of way
contractor item 7e is an authorization for Iron Mountain which of course handles
are some of our document control and provides record storage that is also an
on annual 7G is our rail to rail agreement with Losan.
You will see that as a time extension
and an annual extension number eight.
Item 7H is our standard state rail program,
state rail assistance program resolution.
This is an annual item that for our resolution
to receive those state rail assistance dollars.
And then 7I, while it is not an annual,
it is a part of the agreement that we have with OCTA
for the emergency actions
that involved the San Clemente projects.
Mr. Chair, those items, I think,
would normally fall on a consent calendar in many ways.
We don't typically operate on a consent calendar
if we don't have committees.
But as I look at those,
those may be an opportunity
to be efficient with the Board's time.
Was that 7 C E G and I or did I miss one seven C E G H and I?
All right, if there's no abduction, we'll take those in one grouping
Second all right. Are there questions that any board member has about any of the items?
Are there in no public comments? I take it
Or do we have one no?
Let's have that comment
There was no she said I'm sorry I saw
Need to clear the axe
Sorry, all right. I'll take that in one motion may have a motion and I think we heard a motion from director Spiegel
Okay, we've got a motion of all right all those in favor
I any opposed all right. We've we're done with those
And now our next one would be item 7d. Mr. Chair
Seven seven D D. All right, seven D. All right. We need a
Morning chair and members of the board of the presenting on item 7d contract number e 761-25 on-call professional services for Metrolink
operations next slide, please
The authority requires continued staff augmentation project management and technical services support to assist the authorities
operation team in day-to-day train operations and ancillary support tasks.
These services are currently authorized through contract task orders through on-call PMCM
bench contract E746-20, which is set to expire on June 30th of 2025.
With ridership growth, service expansion, and continued operation support for the safe
and reliable day-to-day service, the authority is seeking a continued support for a dedicated
team to support the authority over the next eight years.
Next slide, please.
The authority issued an RFP number E 761-25 on November 20th, 2024, 560 registered vendors
were notified.
A total of 84 questions and requests were addressed during the Q&A process.
Six proposals were received by the due date of February 19th, 2025.
A technical evaluation committee scored the technical proposals for the advertised criteria
and pursuant to the evaluation, AECOM Technical Services Inc. was found to be the highest
rank proposal. Next slide please. It is recommended that the board authorize the chief executive
officer to award contract number E-761-25 for an on-call professional services or Metrolink
operations to AECOM and a not to exceed contract authority of $21 million for a base term of
five years with a single three-year option to be exercised at the discretion of the CEO
subject to budget availability. Work under this contract will be authorized through individual
Contract task orders this award is subject to resolution of any timely files protests
Excite please that concludes my presentation. I'll be happy to answer any questions questions
I don't see you and I will move the item. Is there a second?
Moon and seconded an objection abstention motion carries. Thank you. Thank you
7f this is an open loop demonstration
PILOT project. Lisa Barr, Chief Semester Experience Officer, and Kevin Gray, Chief Tech Officer.
Good morning, Chair Chafee, members of the board. I'm Lisa Barr, Chief Customer Experience Officer.
I'm joined by my colleague, Kevin Gray, Chief Technology Officer.
We're here to present a recommendation for the CEO to negotiate and execute a MOU with the Southern California
Association of Governments, or SCAG,
subsequent vendor agreements,
and a capital budget adjustment
for a grant-funded demonstration
of open-loop contactless fare payments.
Next slide, please.
As background, MetroLink is partnering
with the California Integrated Travel Project, or CaliTP,
which is a CalSTA and Caltrans initiative,
and SCAG to launch an open-loop contactless
fare payment demonstration
on the San Bernardino and the Arrow Lines.
The demonstration is being fully funded
with a grant from SCAG and provides us an opportunity
to learn more about how open payments impact our agency
resources, change rider behavior,
and allows us to gather data to evaluate a potential system-wide
rollout.
Next slide.
So what are open payments?
Open loop transit payments, or simply called open payments,
allow riders to pay for their trip
directly by using a contactless EMV credit or debit card
or mobile wallet.
They simply tap their card or phone at a validator
on the platform and hop on the train.
Transport for London, or TFL,
which is the transportation agency
that manages public transit in London, UK,
was the innovator of open payments in transit.
Customers have enjoyed the ease of paying
with credit or debit cards.
They already have in their wallets in London
for over a decade.
Next slide.
As Metrolink expands its reach
beyond the traditional commuter,
it is more important now than ever
to make taking the transit train as easy as possible.
By simplifying the steps to pay for transit,
We improve the customer experience,
have the potential to increase ridership,
and lower operational costs, just to name a few benefits.
Next slide.
Although open payments are widely accepted on transit abroad,
they are fairly recent development here
in Southern California.
San Diego launched open payments last year
on bus, trolley, and NCTD rail.
Member agency VCTC went live with open payments
on buses this week.
Congratulations.
and OCTA will go live later this year,
and LA Metro will have their entire system open payment
enabled ahead of the World Cup next year.
Next slide.
Next we'll talk about the MOU and scope of the project.
Next slide.
Metrolink is grateful to the state and the region
for the open payment project support.
CaliTP is making it simpler and more cost effective
for riders to take transit in California.
By working with CaliTP, Metrolink will benefit
by perching off the state's Open Payment Master Services
Agreement, while also receiving ongoing support from their team
to navigate the process.
SCAG has generously stepped up to sponsor
the funding for this project as part of its Regional Pilots
Initiative.
As the regional rail provider for five Southern California
counties, SCAG sees Metrolink as a key strategic partner
in leveraging open payment technology
to create a seamless customer experience on transit
across the region.
And in true partnership, we have representatives
from both organizations here with us today.
Next slide.
Good morning board members.
I am Kevin Gray, Chief Technology Officer for Metrolink,
and I believe this is my first opportunity
to address you all.
The MOU, which is currently in draft form
and being circulated between SCAG and Metrolink,
will cover up to $2.8 million in grant funding from SCAG
for the Open Payment Demonstration Project.
The project scope includes the purchase and installation of open payment validators
on the San Bernardino and Arrow lines and associated payment software and fees.
All customers will have access to use the open payment system.
However, discounts and transfers will not be available for the pilot.
Customers tap on at a platform validator before they get on the train and they tap off
when they disembark.
There will be a daily fair cap equal
to our new SoCal Day Pass.
Next slide please.
Next, we will review the Cal ITP vendor selection process
and project timeline.
Next slide.
Under the Cal ITP master services agreement,
vendors have already gone
through a comprehensive procurement review process
with the state of California.
Metrolink has completed phase one
where staff define the project scope.
We are currently in phase two where in coordination
with our contracts and procurement team,
we are evaluating vendors for the project.
Concurrently SCAG is securing funding authorization
for the project, allowing us to hit the ground running
once we receive all necessary approvals.
Our current goal is to launch the demonstration
at the end of the calendar year.
Next slide.
While the open payment demonstration is being driven
by a desire to make taking transit more seamless,
simple, and accessible in region,
we are cognizant of the benefits
a full system rollout would have ahead
of welcoming the world to Los Angeles.
Allowing visitors to simply tap to ride Metrolink
with cards or phones they already have in their pockets
would eliminate customer journey friction points
for people who are new to our system?
Should the demonstration prove successful,
we would aim to deploy open payments
system-wide ahead of the games.
Next slide.
And that concludes our presentation,
and we're here and happy to answer any questions.
Questions from board members?
Sorry, go ahead.
First of all, thank you for your presentation,
and I think this is an important step forward.
A question for you, if I understand correctly,
these little systems that are in place
are not actually on the trains.
They're at a station that you would use to tap
and then to get onto the train, correct?
Yes, for our pilot,
the validators will be on the platforms at the station.
And the reason I raise it is because sometimes,
there's a line, train comes,
you're rushing to get to the train.
has there been any operator in other parts of the world
that have actually had something on the train itself
so that you can go straight to the train,
you're not rushing,
think about all the people that had to run
from the place where you purchase your ticket
to the platform, to the train,
and how many strains, any hips,
any types of physical challenges that come,
but why not actually have it on a train
so that people can just go straight there and tap onto it.
So the great thing about this is there
is no purchasing of the ticket, per se,
like a ticket vending machine.
So it really is tap and go.
So you generally don't see lines at validators
because it is the process generally in a blink of an eye.
And having it on the validator, since we have
a distance-based system, that means
that you're going to get an accurate cost between station
There are some agencies that do have them on the trains, so up in Sacramento, they have them on the trains for other reasons because they have a different type of system.
They would prefer to have them on the platforms if they were able to.
Okay, so if I understand correctly there
The person that would tap may not necessarily the person that let's just say they're paying cash
Or they're paying in some other way and they would use a different system
So they wouldn't necessarily be in the line the tapper would be kind of had a competitive advantage to just tap and go
Absolutely, that's the advantage of this and then there would be additional validators on the platform as well
Encouraging the other challenge director Sandoval is that our equipment goes all over our system
So if we were just to put it on a car, we would have to put it on, as a pilot,
we would have to put it on every car and every place.
Where I was seeing the issue is if you're in the same line with everybody else who is in line
with the current system, this actually gives you an advantage
of just being able to tap and go.
Tap and go.
That's a good system.
Thank you for that.
Dr. Duchary?
I was saying quite just a 10-bit.
I'll just add on to it.
I'm assuming that when a conductor comes by,
there's something that validates that they are tapped in.
Absolutely move I move for approval
So so just to confirm that statement so when when someone does pay and there is a fair enforcement
There is some sort of receipt of payment
when the inspector goes to
inspect the
card or the mobile wallet
They will be checking on their on their mobile device and the we won't have an account-based system
So it would be on that person's credit or debit card account, where they would see that.
But the fair validation, they're on the device of a conductor.
They can tell that someone tapped to get on.
Then they have the max fare of $15.
So there's an incentive.
All right, more questions?
That's a great system.
I'm glad we got a grant to pay for the pilot.
Oh, sorry.
That's okay.
I'm easily forgotten but the same thing that I was wondering if a person forgets to tap
and especially if you launch the system wide right before 2028, there will be a lot of
out of towners and people not accustomed or maybe not even understanding what they're
supposed to do.
So if somebody, I suppose, gets a $15 charge or maxed whatever that is, will our customer
service team be lenient in some sense to be able to reverse some charges?
If somebody calls and says, well, I only went two stations, I should have paid $4 and I've
got a $15, can I get my $11 back?
What is our customer service folks going to be able to do about that, if anything?
My sense is that could be a slippery slope.
Just because if someone were to game a system, I think we do have an appeals process through
our customer service group that if there's something along those lines, I think we would
be careful, need to be careful of habitual offenders.
Then as it relates to the games, one of the things that we fully expect during LA-28 is
We are gonna have a substantial ambassador program,
including at LA Union Station where we would be
telling people, tap off, tap off, tap off,
so that we would be able to handle it that way.
But again, I just remind the board, this is a pilot.
We wanna test it out.
We're gonna have, we'll probably find a bug or two or six,
but it'll inform us because I do think
it is part of the future for us
and we can make tweaks as we go,
but this is a way to get it off the ground.
And the second part, which kind of you covered,
but when the conductor goes scanning tickets,
or the sheriff, for that matter, the sheriff
doesn't have the validator that the conductor has.
So the sheriff would be looking for each person
and to verify they have a legitimate ticket.
So if the TAP doesn't provide a code or something
that the sheriff could look at or the conductor could
look at physically on that person's phone and says,
yes, you paid rather than, oh, you
need to go into your bank account
and look for a debit for today.
That seems kind of ridiculous.
So is that something that's included?
So anyone inspecting would be using an inspection device,
which is a mobile phone.
And this would just be an additional app on that phone.
And how does it know that that particular person paid?
I'm not sure I understand that.
So just like if you were to pay for a cup of coffee,
there has been a charge made.
And so it recognizes that there was a charge made
to our account for Metrolink.
So it will recognize that.
I mean, there's 100 other people on the train.
How does it know it's that person?
I'm just trying to understand.
If you figured it out, great.
I'll stop asking.
We figured it out.
OK.
I promise.
Ryan, why couldn't you have just said
that in the first place. Yes sir, we got it figured out.
Dr. Appreciato. Yes, anything that makes the user experience better is
appreciated, plus I get his staff for looking into those options. My question
is with all the MOU agreements and the tapping, is would we be, or maybe it's
already also already resolved, but is, would the tap cards be able to be used
for this tabbing?
Like in the partnership with Metro?
We are leapfrogging the smart card capability
and going right to open payments.
Okay. Thanks.
All right. And just as a reminder,
with the Metrolink ticket, with the Metrolink ticket,
not with the TAP that we're talking about here,
but the Metrolink ticket, you're able to go on to many,
many other transit systems in the region
with the Metrolink ticket.
So we approach it that way.
Here this exciting I miss somebody yes
We're there
You recognize me, okay? Well. Thank you. I was it was blocked go ahead. I was just gonna comment
I was recently in San Francisco and on both Keltrain and the ferry they had the tap on tap off
But they did have clear instructions and reminders for you because I don't use that system often
Reminding folks to tap off when they leave so hopefully we'll have that kind of information to
Help communicate with folks about the system, and it did work seamlessly
Promise we will have great communications for this project
Looks like the experiences so far have been positive
So we'll look forward to working out any bugs
Okay, I have a motion motion to approve
Moved in second any objection and abstentions
All right motion carries. Thank you
Wait is it J is next I think
Yes, very Jay all right
Gabriela Saravia our fair collections manager you're on
Good morning members of the board. I'm Gabriella Saravia fair collections manager next slide, please
I'm here today to present two recommendations
The first is to authorize the CEO to exercise the one five-year option to extend the in it operations maintenance and hosting services contract number h
1660-18-om through June 30th
2030 the second is to increase the contract authority by nine point sorry nine million one hundred eight thousand from
Nineteen million six hundred thousand to a new not to exceed amount of twenty eight million seven hundred eight thousand next slide
The operations maintenance and hosting contract within it began on July 1st 2020 and expires on September 30th
2025
Covering 24-7 software support, system maintenance and secure hosting for fair transactions.
INIT ensures compliance with PCI standards and tracks KPIs like reliability and response times
with financial penalties for not meeting performance metrics. Next slide.
INIT was awarded the TVD contract in 2018 followed by a series of amendments between 2020
and 2024, that adjusted costs, added functionality,
and expanded station coverage.
In February of this year,
the authority notified in it of its intent
to exercise the one five-year contract extension.
Next slide.
Extending the INIT contract ensures stability
in our fare collection system, avoiding disruptions
and ensuring seamless customer experience.
It also enables future service enhancements
supports regional integration and technology upgrades. Next slide please.
Thank you. This concludes my presentation and I'm happy to answer any questions
you may have. Questions? Seeing none, thank you presentation. Again, may I have a
motion? Is there a second? Second over there. Any objection, abstention? Seeing none,
and motion carries, thank you.
7K.
Alfredo Fernandez, we're now talking about
mobile online ticketing seems a little bit
like the pilot we're talking about.
Thank you, Chair Chapman, members of the board.
Since 2015, the mobile ticketing app, inspection app,
and optical readers installed at the LA Metro gates
continue to be a vital technology for the agency
and most important to our riders.
With this technology, our riders can purchase fares,
validate their fare media,
and seamlessly transfer to the LA Metro rail system.
As of May of this year,
the current mobile adoption rate is 62%,
and the current monthly optical scan average
of the Metro fare gates is approximately 71,000 scans.
However, this contract with Mesabi expires
on November 3rd of 2025.
As part of this contract extension,
the agency is negotiating with Massabi
the implementation of the following three features.
One, the mobile app electronic benefit transfer, or EBT,
which is a discount verification feature.
This would allow low income riders
to purchase mobile fares at a 50% discount.
Second, ticket validation via a cloud solution.
This replaces the current physical single board
computer's technology with the virtual connection
and will enable us to expand to other stages.
Third, Google Maps integration.
Allow riders to buy fares directly from Google Maps.
So that recommendation.
It is recommended that the board authorize
the chief executive officer to amend contract number
H1656-15 with MOSABE LLC to rectify action
of the CEO to increase contract authority
by $724,238 from a $7,242,388
to a new total not to exceed contract authority
of $7,966,627 under the CEO's 10% contingency.
Second, extend the current performance
to November 3rd of 2026 with an additional one year option
to be exercised at the discretion
of the authority's Chief Executive Officer.
Third, increase contract authority by $3,863,112
from $7,966,627 to a new not to exceed total amount of $11,829,639.
Next slide, please.
This concludes my presentation and I'm happy to answer any questions.
Questions?
I don't see any.
With that, may I have a motion?
Second? All right, any objection, abstention?
Motion carries.
Thank you for your presentation.
Thank you.
Now we go into a contract for wood ties,
which we occasionally need for maintenance purposes.
Good morning, Chair, members of the board.
I'm Eduardo Tewar, and I'll be presenting item 7L,
contract number PO983-25, provision of railroad wood ties.
Next slide, please.
Railroad ties are a critical component
of the track structure.
They help keep the tracks in alignment,
keep each rail in upright position and transfer weight loads to the ballast and sub grade.
Effective railroad ties can result in the track losing proper gauge which can cause
slow order or train derailments.
About two-thirds of ties supporting the authority's truck system are wood.
To maintain the authority's truck system in a state of good repair, effective ties are
changed manually to maintenance and rehabilitation programs.
Next slide, please.
For bids, IFP number PO983-25 for the provision of railroad wood ties was issued February
26, 2025.
The solicitation was posted on the authority's e-procurement system and advertised in publications
within five member counties.
Firms registered in the authority's online vendor database were notified.
23 prospective bidders downloaded the solicitation, and one bid was received by the closing date
of April 11, 2025, therefore it is recommended
that the board authorize the chief executive officer
to award contract number PO 983-25 for the provision of.
Through 7S, we're all receiving file items.
Information regarding those items have been provided either online or in a binder.
So if there's no objection, I want to declare all of them received and filed.
If there's any of the items that a director would like to discuss separately,
please speak up now.
Seeing none, they're all received and filed.
Now we come on to our Chief Executive Officer's report.
Thank you, Mr. Chair.
I will have a few slides for you, and then I have just one other quick item just to add
on given some events that have happened in the last 24 hours.
So I'll get that in a second.
But let me first talk about the San Clemente Coastal
Stabilization Project.
We provided a lot of information.
We worked very, very closely with our member agency
and partner, Orange County Transportation Authority.
We did resume service on June 7 for both Metrolink trains
as well as Amtrak Pacific Surfliner trains.
As you can see from the slide, we
removed damaged Mariposa Point pedestrian bridge, which
was actually holding back part of the hill.
and that has now been removed.
And the next big part of the project is OCTA coming in
and building a barrier wall similar to what we did
after the last slide issue in San Clemente.
We placed approximately 5,900 tons of riprap
and you can see the other items.
We had a number of partners in this.
Herzog, our maintenance of way
and track and signal contractor
did much of the heavy lifting.
We worked with BNSF for the access of rock material
or riprap material.
Of course, there was a lot of interaction with OCTA,
but I want to make mention all of those folks
did amazing work and this would not have been successful,
but I'm gonna call out on our own staff,
Fia Ashu, who is our staffer who did all the work
with the cooperative agreements with OCTA,
all the negotiations with Herzog, BNSF,
Every player involved, FIIA was our point
and did an exceptional job, just did great work.
And so my personal thanks to FIIA for,
you were exceptional, so thank you.
This board knows how I love to make our staff blush.
Next slide, please.
So this evening, or tomorrow morning at 12.01,
We transition our train operations contract
from Amtrak to Alstom.
We actually do have a couple of members
of the Alstom team here in attendance at our meeting today.
So starting this morning, tomorrow morning at 12.01,
our train operations will be handled by Alstom group.
and we've already, the team see Alsom in some cases
on their own nickel made some major enhancements
to the central maintenance facility.
Some of you board members have been to CMF.
You saw that it was a bit long in the tooth.
I'm not gonna say that the work that Alsom has put into it
is gonna make it a teenager anymore,
but it looks vastly better than it did them coming on board.
The new uniforms have been delivered for our crews.
We have been putting that notification out to all our riders so that our riders aren't confused,
seeing what would be considered old-school Amtrak ties and hats and vests
to something a little bit more Southern California.
And we've of course been telling that to all of our customers.
And then, next slide.
We shared this news with the board a couple weeks ago that the California Transportation Commission staff
had recommended the award of $52 million out of the Solutions for Congested Corridors Program.
Yesterday afternoon, the CTC approved unanimously the award of that $52 million to be matched
with $87.4 million that we've shared with this board in the past of AQMD dollars plus
about a little over $10 million of member agency funds
so that we're able to procure 12 new tier four locomotives
over the course of the next couple of years.
So we will make haste in an effort
to replace those old tier two
dirtier burning locomotives.
So my thanks to, again, members of our team
that have worked on the grant.
Some of you are familiar with Tom Shamber,
but I think Jennifer Farinas from our own staff,
you've seen Jennifer before,
she's the one blushing right now in the white jacket
on the right hand side of the dais.
And we have a consultant, a grant consultant writer for us,
Deb Redmond, who did some great work.
We wanted to say first, second, third bite at the apple.
I think this was our seventh bite at the apple
of trying to secure funding for this,
so it just goes to show you just never give up
and maybe we'll get it right, and we did in this case.
So, thank you for that.
We're also gonna make sure we extend our thanks to AQMD
because this grant would not have been possible
had it not been for the Carl Moyer grant from AQMD.
And then lastly, just real briefly,
and fortunately, this became less of an event than we feared,
but I've shared this with a couple of board members
on my trip in this morning on the Ventura County line.
We did have to annul some trains today
on the Ventura County line in particular.
We had, we do not yet understand the reasoning for it,
but over the course of yesterday, midday,
and afternoon in the evening,
we had engineers and conductors,
the term I think is called layoff,
which is to say that they called in sick for service today.
We will get to the bottom of it.
we will work with Alstom to make sure that they know
that any of the employees that have transitioned,
they'll be transitioning from Amtrak to the Alstom contract,
that that is not the kind of service
we expect for our customers.
Fortunately the impact is not as great as it could have been
because we had some, our operations team had some real fear
at 10 o'clock last night.
Mr. Felipe, our chief of operations and myself,
if we slept two hours last night, I'd be surprised
because we were really concerned.
And actually, Don probably didn't sleep.
I got a couple of nights, a couple of hours of sleep.
This is not something that we see as in any way
being acceptable, completely or intolerable.
I was disgusted when I was reading about it, quite frankly,
and we will make sure that those that may have been
in the right and under their rules to be able to do it,
it wasn't the right thing to do.
So my apologies to you board members
that I have to share that news with you.
It's a serious matter and we will do everything we can
to make sure it doesn't ever happen again.
Mr. Chair, that concludes my remarks.
I'm happy to take any questions from the board.
Vice-director Spiegel.
Don't ever use the word didn't get it right.
You just had to do a little more convincing.
Yes, ma'am.
I'll be better next time.
And you said the next couple of years.
That means it's going to probably
after the Olympics, correct?
I'm sorry, I'm on the 12 new tier 4.
Yes, even if we ordered them tomorrow,
the manufacturing time for those are several years out,
there's a chance we'll have one or two, but not a full fleet.
And just for the board's awareness,
We do have, we will have or should have,
and this has been the charge I've given our operations
and our project team, we'll have our 55 locomotives
that include the tier twos in ready-to-go order,
at least that is the goal for it.
So, which for us, that will not be the constraint.
The constraint will likely be cab cars,
because we have to operate the head-end cab car
with a locomotive.
And it's looking like we will not
have any of the Olympics in Riverside County.
So we won't have to increase service there.
Director Spiegel, I'd be willing to bet
that there are going to be a number of tourists who
would love to stay at the Mission Inn in downtown
Riverside, and they want to figure out,
how do they take a train to get to Anaheim, or LA,
or Long Beach, or Trestles?
This is a regional games and we are going to have people all over the region.
So I think it's going to be as far south of San Diego and as far north of Santa Barbara
and I think we're going to have to do the best we can to move as many people with as
many trains as we can run.
Your goal is 55.
Our goal is to have 55 operating sets.
There is a chance that we can lease potentially an additional three sets if we can find places
to put trains, five additional sets, I think it's five additional sets from North Star
passenger railroad in Minnesota, but 55 is the minimum.
And with that being said, are we working with the NSF and UP for, I mean, we're limited
to Riverside County because of the slots, are they working with us?
Yes we are and as well as with FRA who does who can also help work with BNSF we have had
BNSF director Spiegel you hit the the the LA28 ad hoc committee has heard this heard
me say this on more than one occasion. Our single biggest challenge of half an hour
bi-directional frequencies on the line between Fullerton and Los Angeles. So Fullerton into
Riverside and Fullerton then south to South Orange County is going to be the
about the willingness of BNSF to see the greater common good of us really
showing well for the Olympic Games and we have been telling that story we'll do
keep doing it and hopefully we get that type of arrangement and support it's now
directors turned for comments any comments don't see anybody I do see a
light still on but that's now off. You can't comment still if you wish. All right
and now it's my comments only that you enjoy the 4th of July. Stay safe. Don't
get too close to the fuse if you're lighting fireworks. Don't hold them in
your hands if you want to throw away a firecracker. There's better ways of doing
that. I do hope you all enjoy the 4th and
Remember why we're having in the fourth?
the commemoration of our
nations independence
So with that we're going to go to closed session
Mr.. Council yes, thank you chair the board will now go into closed session on
Items 11a and 11b as described in today's agenda. Thank you
We'll turn to the closed session room
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facility located adjacent to the Gold Line Heritage Square Station. The
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