MINUTES OF THE REGULAR MEETING OF THE NORTH COUNTY TRANSIT DISTRICT BOARD OF DIRECTORS HELD MAY 18, 2017

CALL TO ORDER

Rebecca Jones, Board Chair, called the regular meeting to order at 2:00 p.m.

ROLL CALL OF BOARD MEMBERS

1. Chuck Lowery (City of Oceanside); 2. Tony Kranz (City of Encinitas); 3. John Aguilera (City of Vista) 4. Ed Gallo (City of Escondido); 5. Bill Horn (County of San Diego); left the meeting at 4:40 p.m. 6. Dwight Worden (Alternate) (City of Del Mar); 7. Jewel Edson (City of Solana Beach); 8. Rebecca Jones (City of San Marcos); 9. Mark Packard (City of Carlsbad); left the meeting at 3:50 p.m.

PLEDGE OF ALLEGIANCE TO THE AMERICAN FLAG

Alternate Board Member Worden led the Pledge of Allegiance to the American Flag.

SAFETY BRIEF

Anthony Flores, Clerk of the Board, provided information on emergency and evacuation procedures.

CHANGES TO THE AGENDA

Anthony Flores, Clerk of the Board, informed the Board that Agenda Item No. 12 was revised to update the title and Agenda Item 19 was updated to reflect a change in the fiscal impact. A revised Agenda, Errata Sheet, and respective Agenda items were provided to the Board Members and the public.

PUBLIC COMMUNICATIONS

Joan Brown, Public Speaker, stated that at the last Board meeting she attended it was mentioned that the District does not make much money on the line which she rides often, along with the , and she has never been asked for her pass which is something the Board needs to take into consideration with respect to fare recovery. Ms. Brown added that she rides the 318, 302, 303, 101 and the 323 and that on the 318 route, in the Vista area, there are no benches or shelters. She said the bus comes every hour and because passengers have to get there early, they have to stand in the hot sun. She stated this is a concern as summer is coming. Ms. Brown stated she does not understand why there are nice shelters and benches in some areas and not in others. She stated that this is something to think about especially in hot weather in Vista and other places where the landscaping is not very good.

Joyce Johns, Public Speaker, spoke regarding her concerns that LIFT is not showing up for scheduled pick-ups and then she received a No Show/Suspension letter and was told to ignore it when she called in to inquire about it. She states this should be looked into.

Patrick McIntosh, Public Speaker, stated that he takes various modes later in the evening, including the Amtrak , COASTER, buses and SPRINTER and has heard the Code Enforcement Officers concerns regarding potential cutbacks in transit security. Mr. McIntosh requested that cuts not be made. He stated that he and a companion were confronted by an individual on a bus and he considered this a threat on his life. Mr. McIntosh went on to say that the only time he has seen transit security is when the Pacific Surfliner passengers are getting on and off the train, and then the officers disappear. Mr. McIntosh recommended that on routes 303, 101, 302, and 305, that the District place a few transit security, either in uniform or plain clothes, to let the aggressors know that this is not acceptable conduct. Mr. McIntosh stated that he is tired of being intimidated.

Board Chair Jones stated that the District’s security program would be discussed later in the meeting.

APPROVAL OF MINUTES OF THE APRIL 20, 2017 SPECIAL AND REGULAR BOARD MEETING

ON THE MOTION OF BOARD VICE-CHAIR AGUILERA TO APPROVE THE MINUTES OF APRIL 20, 2017, SECONDED BY BOARD MEMBER LOWERY.

AYES: PACKARD, KRANZ, HORN, JONES, LOWERY, AGUILERA, EDSON, GALLO NOES: NONE ABSENT: NONE ABSTAIN: WORDEN MOTION CARRIES.

CONSENT ITEMS

1. Receive Monthly Intergovernmental Affairs Report 2. Receive Quarterly Safety Report 3. Receive Quarterly Positive Train Control Report 4. Receive Quarterly Transit Enforcement Report 5. Ratify Agreement No. 17047 to A.O. Reed for Emergency Replacement of a Hot Water Heater at the SPRINTER Operations Facility

Page 2 of 15 6. Adopt Resolution 17-03 Authorizing the Executive Director, and/or his Designees, to Take any and all Actions Necessary on Behalf of NCTD, for the Purpose of Obtaining FY2017 Financial Assistance Through the State of California Department of Transportation as Authorized Under 49 CFR 5311/Fixing America’s Surface Transportation Act §3007 7. Adopt Resolution 17-04 Authorizing the Filing of Applications With the Federal Transit Administration for Federal Transportation Assistance 8. Authorize the Executive Director to Award Agreement No. 17046 to Speedway Constructors, Inc. for ADA Paratransit Eligibility Assessment Facilities Construct ion 9. Authorize the Executive Director to Award Agreement No. 17040 to EFS West to Replace the Existing Gas/Methane Detection and Fire Alarm Systems and Related Exhaust Fans at the West Division Maintenance Facility 10. Authorize the Executive Director to Award Agreement No. 17048 to A and A Fleet Painting for Carpet Installation on COASTER 11. Authorize the Executive Director to Finalize and Execute an Amendment to the Approved Exhibit A for the Overhaul of the Train Wash System at the Stuart Mesa Rail Facility Pursuant to the First Amended and Restated Addendum 18 to the Memorandum of Understanding Between San Diego Association of Governments, San Diego Metropolitan Transit System, and North County Transit District 12. Receive Non-Binding Term Sheet Between NCTD and San Diego Gas & Electric for Electric Bus 13. Authorize the Executive Director to Pay Insurance Premiums for the District’s Property, Excess Property, Crime Terrorism and Excess Workers’ Compensation Insurance Policies for FY2018 14. Approve Waiver of NCTD’s Board Policy No. 17, Budget Development – Operating and Capital Budget Assumptions to NCTD’s PAF Committee 15. Set Public Hearing to Receive Proposed Revisions to Ordinance No. 3, Establishing the North County Transit District's Code of Regulations

ON THE MOTION OF BOARD MEMBER PACKARD TO APPROVE CONSENT ITEMS 1 THROUGH 15, SECONDED BY BOARD MEMBER EDSON.

AYES: PACKARD, KRANZ, HORN, WORDEN, JONES, LOWERY, AGUILERA, EDSON, GALLO NOES: NONE ABSENT: NONE ABSTAIN: NONE MOTION CARRIES.

Page 3 of 15 OTHER BUSINESS

16. Conduct Public Hearing and Adopt Final Proposed Service Changes for BREEZE and FLEX Routes.

Damon Blythe, Deputy Chief of Transit Operations Planning, made a presentation regarding the final proposed changes to the BREEZE and FLEX routes.

Board Vice-Chair Aguilera asked how long it would take to get from the Valley to Mira Costa College. Mr. Blythe answered that it would take approximately 30 to 40 minutes using a combination of routes 315 and 325.

Board Member Edson asked why there was no mitigation proposed for the final proposed FLEX 373 and 374 changes and inquired whether the potential use that had been previously mentioned with agencies such as LYFT and UBER continues to be pursued. Matthew Tucker, Executive Director, informed the Board that there is a lot going on with UBER and LYFT from a regulatory point of view and that there will be a hold on the pilot program until there is greater clarity from the Department of Transportation, especially regarding ADA and Title VI requirements.

Board Member Edson mentioned that at last month’s meeting, a public speaker suggested that if FLEX will not be serving Solana Beach and Encinitas that every other 309 trip should go down El Camino Real and serve Mira Costa College and terminate at . Ms. Edson asked whether this recommendation was taken into consideration. Mr. Blythe informed the Board that there was similar service in the past to what was suggested; however, ridership was low and the portion of El Camino Real along the 309 that goes by Mira Costa College is primarily a walled community that limits transit access.

Board Member Gallo requested an explanation regarding disproportionate burden and disparate impact. Mr. Blythe explained that a disparate impact is when there is an impact on the minority population and a disproportionate burden is when there is an impact on low income populations. Board Member Gallo then asked about how discontinuing service through a particular portion of Escondido on route 353 would be a burden, when there are four other routes that are similar. Mr. Blythe stated that it is not a burden in terms of the service being available; however, removing service from that area which has a higher minority population or higher low income population than the averages of our service area, is considered an impact and that each route is looked at individually. Mr. Tucker added that the demographics for any particular area are looked at relative to the composition of the population in the route in question. Board Member Gallo also inquired as to why it is important to get the 388 bus to Escondido before 8:00 a.m. Mr. Blythe stated that route 389 has a bus coming from Valley Center that gets to Escondido before 8:00 a.m. and that many customers are commuting from that area in to Escondido that need to make connections to other services and that the District wants to ensure they can make those trips.

Alternate Board Member Worden asked about route 308 and the initial proposed change to remove four weekday trips, and the final proposed change to put them back in and if the rationale was because the cost savings would not be justified by the loss in ridership .Mr. Blythe confirmed this.

Page 4 of 15 S.L. Henderson, Public Speaker, proposed transportation from the North County Fair Shopping Center to Pomerado Road, looping Bernardo Drive back to North County Fair. Ms. Henderson stated that she feels there is a need to get to Pomerado Road. Ms. Henderson also commented that she has a problem with the word “ elimination” being used by an agency that deals with people, but she does like the improvements, like the 323. She stated that the vans that are being used are too hard on a customer’s body who has a disability which is her primary complaint today. She stated that the route that comes down Lake Boulevard to Quail Creek should not have these vans, especially with seniors and people with disabilities. She stated that if this continues on April 8, Ms. Henderson will be pursuing a civil lawsuit because of the problems riding the vans. She stated she cannot stand when she feels she should, as that is what she is being told; however, she could stand on a regular bus. In regards to the 389 coming from Encinitas, she stated feels that the final stop should be the Oceanside Walmart again and she does not understand the scheduling for the 388.

Glenn Leider, Public Speaker, spoke in regards to the 395 FLEX and his opposition to not having any service north of Camp San Onofre and stated he is confused on the proposed 325 route. He noted that the proposed scheduling reflects service six days a week through Tamarack, but on the paperwork it shows that seven days a week were being planned which he would like to see. Mr. Blythe clarified that the 315 will be seven days a week and the 325 will be six days a week. Mr. Leider added that he is hoping there will be further discussion for seven day service on the 325, as well. Mr. Blythe clarified that the initial proposal on the 315 was to tie in part of the 325 route to avoid confusion and that there would not be any Sunday service should the proposed changes take effect.

Joan Brown, Public Speaker, asked if the 303 and 309 routes will coordinate with the proposed scheduling. She said she uses them for doctor appointments and they never coordinate. She continued that there are times when she has just missed a bus and the next one will not arrive for another hour and there is no bench to sit on. Ms. Brown also wanted to know if the proposed 318 route will go to the Senior Center and VA Hospital and how much additional time that will add to the route. Ms. Brown commented that it would be nice if it did go to the Senior Center because not many seniors or disabled people can walk up the hill from the 318. For the 325, she stated she uses it a lot for shopping and the route should go to Quarry Creek which, if eliminated, the Hacienda area will not have any service. Ms. Brown stated that many people want to go to the DMV and the closest they can get is the 325 or the 318. She stated she believes that if there are buses going one direction there should be a bus going the other direction at that same corner, if you have to change buses. She states that sometimes if you don’t want to cross the street you have to walk half a mile to get to the other bus stop. Board Chair Jones asked Mr. Blythe to address the 318 concerns and staff to assist with the additional questions after the meeting. Mr. Blythe commented that the increase trip time for the 318 is estimated to be 3 to 4 minutes each way. He added that it will not directly stop at the Rancho Del Oro SPRINTER station anymore as a stop is being proposed across Oceanside Boulevard on Rancho Del Oro at the corner so after the bus makes the turn for eastbound trips it would be right across the street from the SPRINTER station.

Rob Steppke, Public Speaker, mentioned that he is disappointed at the Staff’s Recommendation of eliminating the San Clemente portion of route 395. He says this leaves no service for Camp San Mateo and Camp San Clemente, as well as connections to south Orange County which he believes is a vital transportation link. Mr. Steppke stated that he attended two of the public

Page 5 of 15 hearing meetings, submitted comment cards and sat with staff to exchange ideas. He commented that the verbiage exploring alternative service options for areas north of Camp San Onofre is appreciated, but it was not in the final recommendation. He stated that he is a retired planner and concerned that this will not be visited if it is not in the recommendation or in the motions. He would like to have it on record that alternatives will be explored. Mr. Steppke also wanted to thank the Board for its role and sponsorship for Bike to Work Day ; he stated it was a great event. In regard to connecting to San Clemente, Mr. Tucker mentioned that a proposal has been exchanged with that would hopes will result in reduced fare transportation by rail. Mr. Tucker explained that the proposed program would provide an opportunity for customers to go from the to San Clemente on rail, rather than bus.

Kathy Cook, Public Speaker, stated she lives in the Calavera Hills area of Carlsbad and stated that on route 323 she was unable to get to her medical appointments. She states that should the route changes for the 323 take effect, she will be unable to make welfare checks on her mother and sister who live in the affected area. She also mentioned the possible use of LIFT data location history) to send letters to paratransit riders with the fixed routes that can be used to reach their destination.

Peter Warner, Public Speaker, asked if the District considered extending some of the COASTER trains to San Clemente’s north beach stop which would connect the two OCTA bus routes and the new SC Rides with LYFT service. Mr. Warner also brought up issues with the connections for the 388 and the MTS 235. He stated that the first bus in the morning misses the MTS 280 Express forcing him to take the 235 to San Diego which takes longer.

Rick Ivkovich, Public Speaker, spoke in regard to the 373 FLEX service being cut to Legoland. He said it is difficult to walk up from Palomar and Solamar at Coast Highway to get to Legoland, especially with no sidewalks or access for wheelchairs. Mr. Ivkovich asked that the 373 be kept, or deviate the 101, or have other service besides the 446 which only goes there early morning and one in the afternoon. He also stated that if the 374 FLEX service in Solana Beach area is eliminated it will be difficult to walk up the hill to St. Andrews Church near the senior center in Encinitas.

Gail Banks, Public Speaker, wanted clarification in regard to the proposed 60 minute frequency of route 315. She stated she currently takes the 6:42 a.m. bus to get to work and if she misses that one, she can catch the 7:10 a.m. bus, she stated that should the frequency change and if she misses the first bus she will be late to work. Ms. Banks asked if the bus will continue the same route to the hospital and Wounded Warrior Battalion and what the fare would be. Mr. Blythe confirmed that it would go to those locations and that the fare would be $5 one way or she could use the COASTER one zone pass which is currently $120 , or the Senior, Disabled, Medi-Cal pass which is $41.25. Ms. Banks asked if it would be coordinated with the Base so that she can continue to receive free bus fare for being a government employee. Mr. Tucker stated that there have been a couple meetings with Camp Pendleton and will provide the base liaison with the final proposed changes, including the fares and that the base liaison will communicate with the DOD. Lastly, Ms. Banks stated she would like the District’s website updated so it will be easier to find the bus schedules. She also suggested to promote the new changes at job fairs, or at the base’s monthly cultural fair. She suggested promoting the new route from the 22 area that will come out the front gate to the Oceanside Transit Center may result in new riders. Board Chair Jones asked Mr. Blythe to elaborate on what the outreach will be. Mr. Blythe stated that

Page 6 of 15 the District is working on a new website in the 2018 fiscal year budget, and are promoting on Facebook and Twitter, as well as the current website. He said there will be seat drops on the buses at least one month prior to the service changes to promote where they are going. He stated Ms. Banks’ suggestions are good ones and he will pass them along to the marketing staff to get the widest possible outreach.

Board Member Kranz asked for clarification in terms of working with riders to help them to understand what these changes will mean and how their daily lives will be impacted. Mr. Tucker informed the Board that there is a draft Marketing Plan that will be presented to the Marketing, Service Planning, and Business Development Committee which will provide an enhanced communication plan for the Committee to review. Board Member Kranz asked if there is staff available to work one-to-one with the customers. Mr. Tucker answered that the District does not have adequate staffing for that, but there will be plenty of outreach and customers can also call Customer Service for assistance. Board Member Kranz queried if someone were to show up at a group meeting would they be able to work with a staff member there. Mr. Tucker stated they would.

Board Vice-Chair Aguilera commented that social media may be one of the better ways to communicate with customers.

ON THE MOTION OF BOARD CHAIR JONES TO CLOSE THE PUBLIC HEARING AND APPROVE ITEM 16, SECONDED BY BOARD VICE-CHAIR AGUILERA.

AYES: PACKARD, KRANZ, HORN, WORDEN, JONES, LOWERY, AGUILERA, EDSON, GALLO NOES: NONE ABSENT: NONE ABSTAIN: NONE MOTION CARRIES.

17. Authorize the Executive Director to Submit Proposed Changes to Comprehensive Fare Ordinance to San Diego Association of Governments’ Transportation Committee for Consideration of Adoption Following Public Outreach and Title VI Analysis

Damon Blythe, Deputy Chief of Transit Operations – Planning, went through a presentation for proposed modifications to the San Diego Association of Governments Comprehensive Fare Ordinance. He stated that after the last Board meeting, staff took into consideration the comments received by the riding public on the proposed paratransit changes and made adjustments to the proposal to address the public feedback.

Mr. Tucker added that the ADA paratransit riders currently pay $3.50 , and with the proposed increase it will be $4.00. He clarified that for the Medi-Cal-approved customers who can provide a Medi-Cal identification number and supporting documentation they will not have to pay the additional cost for a transfer, their trip will be capped at $4 for each trip they take, should a fixed- route transfer not have been needed, and $ 7.00 if a fixed -route transfer would have been needed.

Page 7 of 15 Mr. Blythe went on to explain the next steps in the process and stated that, if approved by SANDAG, the proposed revisions to the fare ordinance will be effective on July 1, 2018.

Board Chair Jones reiterated to the public what is being brought forward is based on their feedback and that their voices did matter. She observed that when she attended one of the public outreach meetings someone asked her if this is a “ done deal” and she informed that person that it was not and that the District wants to work with its customers to figure out the best solution.

Alternate Board Member Worden, asked for an explanation in regards to the relationship between fare increases and loss of ridership, and what the impact of the fare changes would be on ridership. Mr. Tucker explained that there are many different factors that go into play that will impact ridership once a fare adjustment is made and it’s going to be difficult to tell what the impact on ridership will be. He noted that usually what happens when a fare increase is implemented is a some loss of ridership, but over a period of time that ridership comes back and you get the revenue benefit.

Alternate Board Member Worden then asked Mr. Tucker what his confidence level is should the fare increases get approved in regard to meeting the fare box recovery. Mr. Tucker answered that the confidence goes back to the point in calculation of the fare box recovery. He stated that expenses and ridership need to be managed, and there has to be fare policy and they all have to move in the same direction. He stated that the District needs to start repositioning its services to be a lot more competitive than what they are today.

Board Member Edson asked if there was any feedback given to staff or whether staff reached out to the ADA customers we are trying to help to make sure that they are Medi-Cal certified. Mr. Blythe informed her that the District did hear from customers who are ADA certified and that one of the public speakers at last month’s Board meeting mentioned that the District should be giving discounts on the basis of Medi-Cal eligibility. He also stated that, as Mr. Tucker pointed out, by using Medi-Cal eligibility, it positions NCTD to not have to be the arbiter of whether a customer is financially in a position to receive a discount.

Joan Brown, Public Speaker, spoke in regard to the District mentioning loss of ridership and the woman before speaking in regards to the small buses being uncomfortable. Ms. Brown added that they really jolt you and are noisy, although the drivers are very nice. She added that she would need to take two buses to go to her doctor’s office which would be $7.00 but she uses Uber because it is only $8.00 and the same applies for when she has to go to Trader Joe’s. She stated that most of what she does is around Carlsbad Village and a two bus transfer for a trip that’s only three miles away would not work.

Board Chair Jones informed the Board that Jeanne Van derStappen has allotted her time to the next Public Speaker, Ethyl Miranda, who will have six minutes to speak.

Ethyl Miranda, Public Speaker, thanked the Board for listening with their hearts to the community who took the time to come and speak about their personal experiences about how some of the initial proposed changes were going to significantly affect their lives. She also wanted to acknowledge that Board Chair Jones came to meet, hear, and see her constituents at the informational sessions. Ms. Miranda said she calls that accountability, and stated that this is

Page 8 of 15 awesome and a lot more is needed these days. She said that Board Chair Jones came, met them and clarified that the proposed changes were not a done deal and Ethel never thought it would be but the Board came through by listening and came back with proposed changes that sound very reasonable. Medi-Cal is in fact one of the standards of signaling the low income need. Ms. Miranda appreciates that and does want to thank the Board for listening. Ms. Miranda stated she wanted to make sure that the disabled and visually impaired customers came and acknowledged the District who will continue to hear from them to work together in a partnership.

Board Chair Jones commented that staff worked very hard on the proposed fare changes trying to figure out how best they could help both the District and the disabled customers. Board Chair Jones also thanked both the staff and the disabled customers very much.

Joyce Johns, Public Speaker, was not present when called.

Jake Salazar, Public Speaker, was not present when called.

Patrick McIntosh, Public Speaker, stated that he lives in Oceanside and attends the Consumer Advocacy Transportation Committee and wanted, like Ethyl, to thank the Board very much for really listening when the disabled customers mentioned that the District is taking away from the people who could afford it the least. Mr. McIntosh also mentioned that he uses the as a disabled adult from Oceanside to San Diego and is wondering how much the monthly 41.25 fare that he pays will be going up because that will really affect how he is going to get around. Mr. Blythe answered that the proposed cost is $45.50 starting July 1, 2018. Mr. McIntosh stated that when he renewed his Compass Card on the library computers, he discovered that after checking with MTS he cannot find out whether his card is registered or when the expiration date is because he is not using either a transit debit card or a check to make his monthly payment. He mentioned it at the ASAC Board and is going to bring it up again. He thanked the District for reaching out to Metrolink in regards to the one-way from Oceanside to San Clemente on a reduced rate. Board Chair Jones informed him that they will have staff touch base with him about his Compass Card.

Kathy Cook, Public Speaker, requested that Anthony Flores, Clerk of the Board, read part of her statement on her behalf. Her main focus was placing a cap amount on the total daily cost for SPRINTER and BREEZE and she requested that NCTD send her the federal and state ordinances/regulations that allow NCTD to collect NEMT payments from Medi-Cal and the paratransit rider who has full Medi-Cal benefits and she requested that NCTD look at the statute with a different perspective, creating a more balanced fare. She stated she saw nothing about giving receipts for cash payment so veterans can turn it in and get reimbursed and those on Section 8 can have their monthly rent lowered. She also asked if the service changes approved by the Board could be postponed. Mr. Tucker answered that the District is moving forward with being able to allow the operators to issue a receipt for customers who pay with cash and will likely roll that out July 1 with the change in contractors. Mr. Blythe added that any para -transit customers can contact Customer Service or the District’s ADA Program Administrator and request a monthly trip history if they are trying to verify what trips were taken and the fare paid. Ms. Cook stated that she has been trying to do that for the last 20 years and has always been told that she couldn’t do it. Board Chair Jones suggested that maybe a staff member can contact her and tell her how the process works. Mr. Tucker added that if she reads the proposed fare ordinance, the ADA-approved paratransit customers are allowed to ride BREEZE and

Page 9 of 15 SPRINTER services fare free and that the District is also proposing to allow the ADA-approved paratransit customers to also ride COASTER services fare free which will be additional mobility options to help manage the impacts to the changes that are being proposed.

Board Member Lowery wanted to acknowledge that for him, as a Board Member, it makes an incredible emotional impact on him when he has neighbors like Joan Brown speaking and the other customers coming to let the Board know what it’s really like to have transportation options. He stated that the Board is listening and taking this very seriously. He commented that the Board has really considered all the work the staff is doing and thinks the District is moving very slowly through this process and it’s very important that the neediest group articulate their needs to the Board. He thanked the public speakers and complimented them for being so articulate with their concerns.

ON THE MOTION OF BOARD VICE-CHAIR AGUILERA TO APPROVE ITEM 17, SECONDED BY BOARD CHAIR JONES.

AYES: PACKARD, KRANZ, HORN, WORDEN, JONES, LOWERY, AGUILERA, EDSON, GALLO NOES: NONE ABSENT: NONE ABSTAIN: NONE MOTION CARRIES.

18. Approve the Source Selection Committee Recommendation to Select RhodesMoo re, LLC as the Highest Ranked Proposer for the Solana Beach Joint Development Project Pursuant to Request for Proposal No. 23885 and Authorize the Executive Director to Enter Into an Exclusive Negotiation Agreement with RhodesMoore, LLC.

Board Member Jewel Edson formally recused herself at 3:50 p.m. from this item as she represents the City of Solana Beach, and returned to the dais at 4:05 p.m. after the vote on this agenda item.

Tracey Foster, Director of Real Estate, reviewed a presentation providing a brief overview of the Solana Beach COASTER station pointing out that it is unique from all the others due to its grade separation and trench tracks. Ms. Foster then went on to speak about the project vision for a joint mixed-use development being done in two phases. Charts of the received proposals were reviewed as well with RhodesMoore, LLC. having been chosen by the Source Selection Committee and, if approved by the Board, the Executive Director will enter into an exclusive negotiation agreement with RhodesMoore, LLC.

Board Member Gallo said that he is glad to see this project advancing.

Alternate Board Member Worden asked if the $6 million in rent is all from parking spaces. Ms. Foster informed him that it is from ground lease revenue. Alternate Board Member Worden stated that in one of the MOU’s one of the parties to the original agreement was the Solana Beach Redevelopment Agency. He asked if they were gone with the repeal of the redevelopment law or whether they are still in the picture. Jacob Gould, Senior Legal Counsel,

Page 10 of 15 responded that the RDA for Solana Beach does not exist anymore, and it is not a party to any of the new agreements, only the City. Mr. Gould informed the Board that the current action is to authorize the Executive Director to enter into an exclusive negotiation agreement and through that NCTD would have 18 months to determine which agreements would be needed. He stated that currently, under the RFP it is, at minimum, a ground lease and a disposition and development agreement. Alternate Board Member Worden asked if the public financing component is just for the parking or whether there other public facilities that would be in the public financing part of the agreement. Mr. Gould answered that currently only the parking is being considered.

ON THE MOTION OF BOARD MEMBER ED GALLO TO APPROVE ITEM 18, SECONDED BY BOARD MEMBER CHUCK LOWERY.

AYES: KRANZ, HORN, WORDEN, JONES, LOWERY, AGUILERA, GALLO NOES: ABSENT: EDSON AND PACKARD ABSTAIN: MOTION CARRIES.

19. Authorize the Executive Director to Finalize and Execute Supplemental Agreement No. 10 to Contract No. 16043 with Bombardier Transportation ( Holdings) USA, Inc. for Addition of Train Attendants for SPRINTER Train Service and for COASTER Conductors to Conduct Fare Enforcement

Matthew Tucker, Executive Director, provided a presentation that included a background on the SPRINTER train, and the key factors leading to adding train attendants on the SPRINTER which are to support positive safety outcomes, security and customer service. He stated that the Supplemental Agreement would also require the COASTER conductors to write citations.

Board Member Gallo asked what the train attendants will do. Mr. Tucker stated that they would perform the same duties as a conductor on the COASTER and that the District’s intention is that during all times of revenue operations there will be a person on board that train. Mr. Gallo wanted to know if every train would have an attendant. Mr. Tucker answered that every train will have a train attendant on board.

Alternate Board Member Worden asked whether revenues would increase significantly if fare adherence is increased. Mr. Tucker answered that it would strongly encourage people to have their fares. Alternate Board Member Worden then asked if the train attendants would have the ability to tell customers they have to pay or cite them if they don’t. Mr. Tucker informed the Board that they will be able to issue citations in accordance with the procedure the District is providing Bombardier. Alternate Board Member Worden asked if they will be wearing some kind of uniform. Mr. Tucker confirmed they will. Alternate Board Member Worden wanted to know if any of this is being done to meet Federal Railroad Administration regulations or is it just to improve the District’s service and it already meets the regulations. Mr. Tucker stated that this is not a requirement of the Federal Railroad Administration , but that this is part of the long range vision for the District.

Page 11 of 15 Board Member Kranz, stated that NCTD currently has Code Enforcement Officers that are performing a variety of functions and asked how those duties will be performed once they become permanent train attendants. Mr. Tucker answered that the District is making an investment specifically on the SPRINTER train to add a resource that was not there before. He continued that also included in the Supplemental Agreement, is that on the COASTER line the District would be requesting Bombardier to direct its conductors to perform fare enforcement. In addition, for the next fiscal year’s budget, he noted that the District is in the process of negotiating an agreement with the City of Oceanside and the City of Escondido to support community policing at the Escondido Transit Center and Oceanside Transit Center. Mr. Tucker explained that the proposal is to have 16 hours of coverage, 365 days a year at the highest activity center, Oceanside Transit Center and at the third highest activity center, Escondido Transit Center. He stated that it is within that framework that the responsibilities that would have been performed by Code Enforcement Officers are being covered. Lastly, he noted that there are approximately nine Code Enforcement Officers that the District would be retaining to function as the CCTV monitors throughout the system, so that function would be maintained, as well. Board Member Kranz asked if the Sheriff’s contract would remain. Mr. Tucker confirmed that it would. Board Member Kranz then asked who would be responsible for enforcement if someone were illegally smoking at a transit center. Mr. Tucker said that it would be the responsibility of the police department.

Board Member Gallo stated that he thinks this is a good move for fare recovery.

Board Chair Jones added that one of the speakers today mentioned that she had not ever been asked for her pass and it’s definitely good for fare box recovery.

ON THE MOTION OF BOARD MEMBER TONY KRANZ TO APPROVE ITEM 19, SECONDED BY BOARD MEMBER CHUCK LOWERY.

AYES: KRANZ, HORN, EDSON, WORDEN, JONES, LOWERY, AGUILERA, GALLO NOES: ABSENT: PACKARD ABSTAIN: MOTION CARRIES.

20. Approve Third Amended Employment Agreement Between NCTD and General Counsel

Karen Tucholski, Chief Administrative Officer, reported that the Board of Directors met in Closed Session at the April meeting and conducted a formal performance evaluation of General Counsel in accordance with her employment agreement. She noted that the collective recommendations are detailed in the staff report in regard to overall performance evaluation, as well as salary and benefits.

Board Member Kranz commented that the District is represented very well by General Counsel, Ms. Lori Winfree and he moves to approve.

Page 12 of 15 Alternate Board Member Worden said that he discussed this item with Board Member Druker and took into account his input, and has read all the materials and feels comfortable to vote in support.

ON THE MOTION OF BOARD MEMBER TONY KRANZ TO APPROVE ITEM 20, SECONDED BY BOARD MEMBER ED GALLO.

AYES: KRANZ, HORN, EDSON, WORDEN, JONES, LOWERY, AGUILERA, GALLO NOES: ABSENT: PACKARD ABSTAIN: MOTION CARRIES.

INFORMATIONAL ITEMS

21. Receive Presentation from Staff Regarding FY 2018 Operating Budget

Luz Cofresí-Howe, Chief Financial Officer, reviewed a presentation on the proposed FY 2018 operating budget assumptions.

Board Member Gallo commented that there is a petition statewide to repeal SB1 and he has been informed by Sacramento staff that there are loopholes in the bill that most people are not aware of; one of which is that the State can take money from the gas tax. Ms. Cofresí-Howe informed the Board that there is no money from SB1 reflected in the 2018 proposed budget and staff is being conservative in that respect.

Board Chair Jones asked about the TransNet amount being less and whether it is because sales tax is down or is it because the District’s allocation is less. Ms. Cofresí-Howe stated that it is a combination of both and the District is taking a conservative approach to the budget. Board Chair Jones said that she like that approach.

Alternate Board Member Worden inquired if the fare box recovery ratio is based on operating expenses. Ms. Cofresí-Howe said that it was. Alternate Board Member Worden then stated he does not see a line for reserves and asked whether they are maintained. Ms. Cofresí-Howe informed the Board that NCTD has a $15 million Board reserve and a self-insured reserve that is at $3.3 million. Alternate Board Member Worden asked if NCTD has pension issues like cities. Mr. Tucker commented that NCTD does not have the same issues other cities have in terms of the unfunded liability.

Board Member Kranz wanted to know what the $2.3 million in signal equipment is for as reflected in FY2021. Ms. Cofresí-Howe said that it is a grade crossing, signal control or replacement and there is a switch replacement, as well.

Board Vice-Chair Aguilera asked why the District thinks it is going to stop losing riders in 2020. Mr. Tucker answered that there are plans within the TransNet program to increase frequencies on the COASTER.

Page 13 of 15 Alternate Board Member Worden asked if the District needs to get SANDAG’s approval on the budget. Ms. Cofresí-Howe said that the budget is presented to them but does not need their approval.

Board Vice-Chair Aguilera thanked Ms. Cofresí-Howe for the presentation and stated he is impressed with salaries and budgets reflected in the pie chart and that most of it is going to transportation. He stated he appreciates taking the conservative approach, taking into consideration the political climate and the national trends of a decrease in ridership.

Ms. Cofresí-Howe added that the budget will be coming back to the Board to close the public hearing next month, as well as for discussion of any changes and for approval.

EXECUTIVE DIRECTOR’S REPORT

Mr. Tucker stated he had nothing to report.

BOARD MEMBER REPORTS, COMMENTS AND CORRESPONDENCE

Board Vice-Chair Aguilera announced the Strawberry Festival in Vista over Memorial Day Weekend and promoted use of the SPRINTER to attend.

Board Member Kranz stated that the Encinitas historic downtown on display for the street fair and he was disappointed that public transit was unavailable that weekend.

Board Member Edson mentioned the Fiesta Del Sol at Solana Beach was scheduled for the weekend of May 20 and promoted use of the COASTER to attend.

Board Member Gallo stated that the 2nd largest street fair is on Sunday in Escondido.

Board Member Kranz asked what the flashcards in their folder are for. Mr. Tucker advised that the cards were developed to help the Board Members in their advocacy efforts to help the District receive grant funding.

REMAINING PUBLIC COMMUNICATIONS

Public Speaker, Peter Warner, asked when the 3rd platform at OTC is going to be open for service. Kimy Wall, Manager of Marketing & Communications, informed the Board that it would be May 31st.

Board Chair Jones announced that the next meeting will be the MSPBD Committee on June 7th at 10:00 a.m. and the PAF Committee on June 8th at 10:00 a.m. and the next regular Board Meeting is on June 15th at 2:00 p.m.

Page 14 of 15