CAPITOL CORRIDOR JOINT POWERS AUTHORITY MEETING OF THE JOINT POWERS BOARD

Wednesday September 21, 2005 10:00 a.m. BART Boardroom, 344 20th Street, Kaiser Center Mall, 3rd Floor Oakland, CA, 94612 (see attached map)

AGENDA

I. Call to Order

II. Roll Call and Pledge of Allegiance

III. Report of the Chair

IV. Minutes of June 15, 2005 Meeting Action

V. Consent Calendar [no items]

VI. Action and Discussion Items (Executive Director) 1. CCJPA FY 06 Budget Action 2. CCJPA/ FY 06 Fixed Price Operating Agreement Action 3. CCJPA FY 06 Marketing Plan Action 4. FY 2005-06 Budget/Legislative Matters Action 5. Capitol Corridor Automated Ticket Validation Pilot Program Action 6. 2006 STIP Capitol Corridor Intercity Rail Project List Action 7. Results of June 2005 On-Board Surveys Discussion 8. Managing Director’s Report (Status of Service Performance) Info 9. Work Completed a. Vision Plan Update Info b. City of Berkeley Train Station Project Info c. Marketing Activities (June – August 2005) Info 10. Work in Progress a. Oakland-San Jose Track Improvements Info b. Status of UP Design/Engineering and Capacity Analyses Info c. Revisions to CCJPA Station Policy and Service Policy Info d. Regional Measure 2 Projects: Bahia-Benicia , Fairfield/Vacaville Station Info e. Upcoming Marketing Activities Info

VII. Board Member Reports

VIII. Public Comment

IX. Adjournment. Next Meeting Date: 10:00 a.m., November 16, 2005 at City Council Chambers, Suisun City Hall, 701 Civic Center Blvd., City of Suisun City Notes: Members of the public may address the Board regarding any item on this agenda. Please complete a "Request to Address the Board" form (available at the entrance of the Boardroom) and hand it to the Secretary before the item is considered by the Board. If you wish to discuss a matter that is not on the agenda during a regular meeting, you may do so under Public Comment. Speakers are limited to three (3) minutes for any item or matter. The CCJPA Board reserves the right to take action on any agenda item.

Consent calendar items are considered routine and will be enacted, approved or adopted by one motion unless a request for discussion or explanation is received from a CCJPA Board Director or from a member of the audience.

The CCJPA Board provides services/accommodations upon request to persons with disabilities who wish to address Board matters. A request must be made within one and five days in advance of a Board meeting, depending on the service requested. Call (510) 464-6085 for information.

DIRECTIONS: Capitol Corridor JPA meeting

San Francisco District - Board Room Kaiser Center 20th Street Mall - Third Floor 344 20th Street, Oakland, 94607

DRIVING DIRECTIONS From the South Bay (San Jose/Fremont/Hayward) Take I-880 North Exit on Oak Street; turn right onto Oak Street Follow Oak Street as it turns into Lakeside Drive Follow Lakeside Drive to 20th Street; stay toward the left Bear right into Kaiser Center Parking Garage

From the (Vallejo/Richmond/Berkeley) Take I-80 West toward Merge onto I-580 East toward Hayward Exit on Harrison Street, stay to the right Follow Harrison Street (which becomes Lakeside Drive) to 20th Street Turn right into Kaiser Center Parking Garage CAPITOL CORRIDOR DIRECTIONS via BART 19th Street Station From the North, get off Capitol Corridor at the Richmond Station, transfer to BART. Take BART to the 19th Street BART station. From the South, get off Capitol Corridor at the Station, transfer to BART. Take BART to the 19th Street BART station. AT BART: Take the 20th Street exit Walk 3 blocks east on 20lh Street, toward

From Kaiser Center Parking structure Mall Entrance on levels A, B, and E Accessible entrance for Persons with Disabilities is available from Level A Directions to the BART Board Room The BART Board Room is located on the 3rd Floor (Roof Garden level) of the Kaiser Center 20th Street Mall. Follow signs In the Mall to the Board Room. From the ground floor, take the escalator or elevator to the 3rd Floor (Roof Garden level). Elevators are also located in the parking garage.

Item IV CAPITOL CORRIDOR JOINT POWERS AUTHORITY

Regular Board Meeting

Capitol Corridor Joint Powers Board of Directors Minutes of the 56th Meeting June 15, 2005

The 56th meeting of the Board of Directors of the Capitol Corridor Joint Powers Authority was held at 10:00 a.m., Wednesday, June 15, 2005 at the City Council Chambers, Suisun City Hall, 701 Civic Center Boulevard, City of Suisun City, California. Chair Roger Dickinson presided; Kenneth A. Duron, Recording Secretary.

I. Call to Order. Chair Dickinson called the meeting to order at 10:12 a.m.

II. Roll Call. Directors present: Chair Dickinson, Sacramento Regional Transit District (SRTD); Vice Chair Forrest Williams, Santa Clara Valley Transportation Authority (SCVTA); Steve Cohn, SRTD; Roger Imsdahl, Placer County Transportation Planning Agency (PCTPA); Christopher Cabaldon, Yolo County Transportation District (YCTD); Bob Franklin, Rapid Transit District (BART); Gail Murray, BART; James Spering, Solano Transportation Authority (STA); Zoyd Luce, BART Alternate (in the absence of Director Blalock); and Len Augustine, STA Alternate (in the absence of Director Courville).

Absent: Directors Gina Garbolino, PCTPA; Ted Puntillo, YCTD; Dean Chu, SCVTA; Thomas M. Blalock, BART (Alternate attended in stead); James Fang, BART; Joel Keller, BART; Lynette Sweet, BART; and Mary Ann Courville, STA (Alternate attended in stead).

Chair Dickinson led the Board in the Pledge of Allegiance.

III. Report of the Chair. Chair Dickinson thanked the Board of Directors for their appointment of Mr. Dickinson as Chair of the CCJPA for the next two years. Chair Dickinson advised the Board that the first joint meeting of the three intercity rail services in California was held on May 12, 2005. The meeting was held to develop an effective joint effort to pursue federal support for the rail services and Amtrak and to provide a forum for to address matters of mutual interest. Additional joint meetings will be held in the future. Chair Dickinson announced that a successful groundbreaking event was held on May 25 for the Coliseum Station in Oakland, with service to the station starting on June 6. Chair Dickinson commented on the success of the event, the participation of local and regional officials, and the interest in a proposed redevelopment of the area surrounding the station. Chair Dickinson commented that the Board is expecting a report on the cause of recent slow orders and train delays on the system and proposed solutions. Chair Dickinson noted that the Regional Rail Policy Advisory group had met and is developing a formula for providing service in the region and will be meeting and updating other policy boards in the coming months.

IV. Minutes of February 16, 2005 Meeting. Chair Dickinson introduced the Minutes of the February 16, 2005 Meeting. Director Williams moved approval of the Minutes of February 16, 2005. Director Cabaldon seconded the motion, which passed by unanimous voice vote. Ayes: 10 - Directors Dickinson, Williams, Cohn, Imsdahl, Cabaldon, Franklin, Murray, Spering, Luce, and Augustine. Noes: 0. Absent: 6 – Directors Garbolino, Puntillo, Chu, Fang, Keller, and Sweet.

V. Consent Calendar. No items.

VI. Action and Discussion Items (Executive Director).

1. Capitol Corridor Joint Powers Authority (CCJPA) Vision Plan Update. Mr. Eugene Skoropowski, Managing Director, described highlights and the process used to develop the proposed updates to the CCJPA Vision Plan.

Director Williams moved adoption of Resolution No. 05-5, In the Matter of Approving the Update of the Vision Plan for the Capitol Corridor Joint Powers Authority. Director Imsdahl seconded the motion, which passed by unanimous voice vote. Ayes: 10 - Directors Dickinson, Williams, Cohn, Imsdahl, Cabaldon, Franklin, Murray, Spering, Luce, and Augustine. Noes: 0. Absent: 6 – Directors Garbolino, Puntillo, Chu, Fang, Keller, and Sweet.

2. Oakland-San Jose Joint Tie Renewal Program (CCJPA/ACE/UPRR). Managing Director Skoropowski described the item, requesting authorization to provide funding for the CCJPA’s share of the joint tie renewal program. Mr. Jerry Wilmoth of the addressed the Board concerning recent service delays and slow orders on the Corridor and the program to mitigate impacts of construction on service.

After discussion, Director Williams moved adoption of Resolution No. 05-6, In the Matter of Providing Funding for the UPRR/CCJPA/ACE Oakland-San Jose Joint Tie Renewal Project. Director Cohn seconded the motion, which passed by unanimous voice vote. Ayes: Ayes: 10 - Directors Dickinson, Williams, Cohn, Imsdahl, Cabaldon, Franklin, Murray, Spering, Luce and Augustine. Noes: 0. Absent: 6 – Directors Garbolino, Puntillo, Chu, Fang, Keller, and Sweet.

3. Proposed FY 2005-06 Budget/Legislative Matters. Mr. Skoropowski reviewed the proposed State Budget for FY 2005-06 and legislative matters affecting Capitol Corridor Service. Liz O'Donohue, Strategic Planning - Amtrak, expressed appreciation of the Board’s support for AJR 18.

Mr. Russ Jackson, Rail Passengers Association of California, addressed the Board.

Director Spering moved to authorize the CCJPA Executive Director to submit a letter(s) of support or opposition for actions relating to the proposed FY2005-06 State Budget and legislative matters affecting Capitol Corridor Service, including modifications as provided by the CCJPA Board. Director Cabaldon seconded the motion, which passed by unanimous voice vote. Ayes: 10 - Directors Dickinson, Williams, Cohn, Imsdahl, Cabaldon, Franklin, Murray, Spering, Luce and Augustine. Noes: 0. Absent: 6 – Directors Garbolino, Puntillo, Chu, Fang, Keller, and Sweet.

4. Results of January 2005 On-Board Surveys. Mr. Skoropowski reviewed highlights of the results of the CCJPA’s January 2005 on-board customer surveys. 5. Overview of CCJPA Station Policy and Service Policy. Mr. Skoropowski provided an overview of policies on stations and service adopted by the CCJPA Board of Directors in October 1998.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 4 6. Managing Director’s Report (Status of Service Performance). Mr. Skoropowski discussed the opening of the Coliseum Station and reviewed recent performance indicators covering the most recent 24 month period, focusing on ridership trends, revenue growth, and cost recovery from fares.

7. Work Completed. Mr. Skoropowski introduced the report on work completed up to June 15, 2005. Chair Dickinson requested information on the Capitol Corridor Reno Extension Conceptual Study.

Director Cabaldon exited the meeting.

Chair Dickinson invited additional questions from the Board. None were received.

8. Work in Progress. Mr. Skoropowski provided a brief report on work in progress, highlighting the City of Berkeley Transit Stop. Chair Dickinson invited questions regarding the Work in Progress Report. None were received.

Mr. Mike Barnbaum, Cat Pack Booster Club, addressed the Board concerning the Coliseum Station opening, the February 2006 potential service increase, marketing opportunities in the Corridor, schedule adjustments, Sacramento Regional Transit District schedule changes, and promotions for the Sacramento River Cats.

VII. Board Member Reports. Director Spering requested an update on the regional Translink fare instrument program.

Director Cohn exited the meeting.

Vice Chair Williams commented on marketing activities and the San Jose Grand Prix (July 29, 2005).

VIII. Public Comment. Mr. Bob Koski, TRAC, addressed the Board regarding a concern with the call center and Amtrak.

IX. Adjournment. Meeting adjourned at 11:42 a.m. Next Meeting Date: 10:00 a.m., September 21, 2005, at the San Francisco Bay Area Rapid Transit District (BART) Board Room, Kaiser Center 20th Street Mall, Third Floor, 344 20th Street, Oakland, California.

Motion: The CCJPA Board approves the Minutes of the June 15, 2005 meeting.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 5 Item V.1 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: CCJPA FY 2005-06 BUDGET

PURPOSE For the CCJPA Board to adopt the CCJPA FY 2005-06 budget based on the enactment of the State Budget Act of 2005.

BACKGROUND In July 2005, the Governor enacted the State Budget Act of 2005, which covers the period from July 1, 2005 through June 30, 2006. Pursuant to the Interagency Transfer Agreement, the Secretary of Business, Transportation and Housing Agency (BT&H) is required to allocate funds in the state budget to cover the CCJPA’s FY 2005-06 budget. (The CCJPA is now awaiting the allocation letter sent from the BT&H Secretary.) The budget details provided below are based on discussions with Caltrans and BT&H:

BT&H FY 06 Allocation CCJPA FY 06 Budget Administration $1,259,964 $2,615,964 Marketing $1,174,000 $1,174,000 Service $23,586,000a $22,230,000a TOTAL $26,019,964 $26,019,964 Note: a. Budget line item is for annual operating agreement (see Agenda Item V.2) and includes 24-daily trains and associated feeder bus routes, as of April 28, 2003, plus the addition of up to 14 weekday trains to/from San Jose pending completed track improvements and 4 added trains to/from Roseville (with 2 added trains to/from Auburn) pending UPRR approval.

As part of CCJPA/Amtrak FY 06 Fixed Price Operating Agreement, staff elected to remove the Reservations/Information budget line item from Amtrak and move this function to the BART Transit Information Center, which will handle all phone calls for the Capitol Corridor service via a separate toll free number – 877-9-RIDE-CC. This transfer resulted in a cost savings of $1,356,000, which will be transferred to the Administration budget. This transfer is authorized pursuant to the Section 6 of Fund Transfer Agreement and requires the CCJPA to notify Caltrans and BT&H as such transfers, which will be encapsulated in the attached resolution for this agenda item.

RECOMMENDATION It is recommended that the CCJPA Board, in accordance with Section 8.1 of the Amended Joint Exercise Powers Agreement to Establish the CCJPA, adopt the CCJPA FY 2005-06 budget of $26,019,964 based on the enactment of State Budget Act of 2005 and subsequent allocation by the State to the CCJPA.

Motion: The CCJPA Board adopts the attached resolution.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 6

BEFORE THE CAPITOL CORRIDOR JOINT POWERS AUTHORITY BOARD OF DIRECTORS

In the Matter of Adopting the Capitol Corridor Joint Powers Authority Fiscal Year 2005 - 06 Budget/ Resolution No. 05-7

WHEREAS, the State of California has enacted the State Budget Act of 2004, which covers the period July 1, 2005 through June 30, 2006, allocating a total of $26,019,964 for the Capitol Corridor Joint Powers Authority's Fiscal Year 2005-06 budget; and

WHEREAS, Section 8.1 of the Amended Joint Exercise of Powers Agreement among the Member Agencies provides for the preparation and submission to the Capitol Corridor Joint Powers Board of an operating budget by the Managing Agency, and adoption thereof by the CCJPA Board;

WHEREAS, CCJPA has elected to remove the Reservations/Information budget line item from Amtrak and move this function to the BART Transit Information Center as part of CCJPA/Amtrak FY 06 Fixed Price Operating Agreement;

WHEREAS, this transfer of phone information service for Capitol Corridor customers has generated $1,356,000 in cost savings for this fiscal year, which will be transferred to the Administration budget;

WHEREAS, transfers between the CCJPA Operations, Administration, and Marketing Budgets are authorized pursuant to the Section 6 of Fund Transfer Agreement and require to notification to Caltrans and Business, Transportation and Housing Agency;

RESOLVED, that the CCJPA Board, pending CCJPA’s receipt of subsequent annual allocation letter for FY 2005-06 from the Secretary of Business, Transportation and Housing Agency, hereby adopts the CCJPA fiscal year 2005-06 budget of $26,019,964 plus any further amount authorized and provided by the State to support additional Capitol Corridor train and feeder bus service based upon the enactment of the State Budget Act of 2005 and subject to allocation of such funding by the State.

AND BE IT FURTHER RESOLVED, the CCJPA pursuant to Section 6 of the Fund Transfer Agreement hereby notifies Caltrans and Business, Transportation and Housing Agency that the $1,356,000 in cost savings realized from the transfer of phone information services from Amtrak to the BART Transit Information Center will be moved from the CCJPA Operations Budget to the CCJPA Administration Budget, resulting in an Operations Budget of $22,230,000 and an Administration Budget of $2,615,964.

AND BE IT FURTHER RESOLVED, that the CCJPA Board forthwith transmit a copy of this resolution to the State of California Business, Transportation and Housing Agency, and California Department of Transportation Division of Rail.

# # #

ADOPTED September 21, 2005

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 7 Item V.2 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: CCJPA/AMTRAK FFY 2005-06 OPERATING AGREEMENT

PURPOSE For the CCJPA Board to authorize the CCJPA Chair to execute the CCJPA/Amtrak FFY 2005-06 Fixed- Price Operating Agreement for Amtrak’s operation of the Capitol Corridor Service (intercity train and feeder bus).

BACKGROUND Pursuant to the transfer and funding agreements with the State, CCJPA submits an annual business plan, which identifies the CCJPA’s annual funding request for the proposed level of Capitol Corridor train and feeder bus service during the federal fiscal year (FFY) to be consistent with Amtrak’s federal appropriation. For FFY 2005-06 (October 2004 – September 2005), the CCJPA submitted a business plan to be the State (through the Business, Transportation and Housing Agency (BT&H)) for the current 24-train service plan. BT&H in return submitted its response to the CCJPA in September 2005 providing $23,568,000 in State operating funds for the CCJPA’s FY 06 operating service plan, which was subsequently revised to $22,230,000 based on cost savings resulting from the transfer of Capitol Corridor phone calls from the Amtrak reservation centers to the BART Transit Information Center (see Agenda Item V.1).

CCJPA/Amtrak FFY 2005-06 Operating Agreement CCJPA and Amtrak staff have developed a budget for the FFY 2005-06 Operating Agreement (sent under separate cover), which is structured for Amtrak’s operation of the current 24-train daily service plan. While the Operating Agreement currently does not include additional service to San Jose or Roseville/Auburn, this added service should be within the budget of $22,230,000, given current economic and ridership conditions as described below:

24 daily trains $21,578,000 (train and feeder bus service levels, as of June 6, 2005) Added San Jose trains $354,000 (up to 14 daily trains when construction is completed) Added Roseville/Auburn trains $300,000 (3rd through 6th daily trains pending UPRR approval) Total $22,230,000

In accordance with the Construction and Maintenance Agreement with the Union Pacific Railroad (UPRR), the CCJPA cannot increase train service to/from San Jose until the track construction is completed. The CCJPA continues to work with UPRR on UPRR’s requirements and subsequent actions by CCJPA to allow for the addition of up to 6 daily trains to/from Roseville (with two additional trains to/from Auburn).

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 8 In its current form, the fixed price contract includes the following:

- Based on an operating budget (CCJPA expenses less projected revenues) submitted by Amtrak, a fixed price amount of $21,578,000 for the CCJPA to support the current train service and feeder bus routes;

- Continues Amtrak’s Route Contribution Analysis (RCA) cost structure, which has resulted in an increase in some budget line items, yet a majority of the budget items have transferred from CCJPA expenses to Amtrak’s national system costs, which are not paid by the CCJPA.

- Maintains the modified UPRR railroad performance payment program of higher incentives for improved dispatching of Capitol Corridor trains. These payments are separate from Amtrak’s national payment to UPRR for systemwide national train railroad performance. Any unearned incentives will be reinvested towards service improvement projects on the route that will in turn improve the on-time performance of the Capitol Corridor trains.

- The fixed budget limits the CCJPA’s financial liability so any cost overruns are absorbed by Amtrak;

- The right by the CCJPA to audit and inspect any aspect of the contract;

- A revenue-sharing formula agreed to by CCJPA and Amtrak for revenues above projections;

- Extra work and compensation would be an item negotiated on a project-by-project basis between the parties; and

- Performance criteria and assessments for Amtrak’s non-performance are incorporated into the contract and CCJPA will administer surveys to calibrate customer satisfaction and rail equipment maintenance performance.

RECOMMENDATION It is recommended that the CCJPA Board authorize the CCJPA Chair to execute the FFY 2005-06 CCJPA Amtrak Operating Agreement for a fixed price contract amount for Amtrak’s operation of the Capitol Corridor Service (intercity train and feeder bus) pending CCJPA’s receipt of subsequent annual allocation letter for FY 2005-06 from the Secretary of Business, Transportation and Housing Agency.

Motion: The CCJPA Board adopts the attached resolution.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 9 BEFORE THE CAPITOL CORRIDOR JOINT POWERS AUTHORITY BOARD OF DIRECTORS

In the Matter of Approving the Agreement for the Provision of Rail Passenger Service ("FFY 2004-05 Fixed Price Agreement") Between the National Railroad Passenger Corporation and the Capitol Corridor Joint Powers Authority / Resolution No. 05-8

WHEREAS, as of October 1, 2004, the National Railroad Passenger Corporation ("Amtrak") and Capitol Corridor Joint Powers Authority ("CCJPA") entered into an Agreement for the Provision of Rail Passenger Service for a fixed-price amount, the FFY 2004-05 Fixed Price Agreement; and

WHEREAS, the FFY 2004-05 Fixed Price Agreement provided, among other things, for the provision by Amtrak of rail passenger and bus service under CCJPA's direction in the Capitol Corridor upon the terms and for the budget set forth therein; and

WHEREAS, Amtrak and CCJPA mutually desire to enter into a similar form of agreement substantially in the form appended to this resolution, providing for the same rail passenger and bus service for a price fixed by agreement between the parties as set forth more fully in the FFY 2005-06 Fixed Price Agreement; and

WHEREAS, the parties desire the effective date of the FFY 2005-06 Fixed Price Agreement (superseding the FFY 2004-05 Fixed Price Agreement which expires by its terms on September 30, 2005), to be effective October 1, 2005, the date of agreement in principle between the parties to all the terms and conditions of the FFY 2005-06 Fixed Price Agreement, subject to appropriate legal review and execution by the parties;

RESOLVED, that the CCJPA Board, pending CCJPA’s receipt of subsequent annual allocation letter for FY 2005-06 from the Secretary of Business, Transportation and Housing Agency, does hereby authorize execution of the FFY 2005-06 Fixed Price Agreement by the Chair of the CCJPA Board or his duly authorized designee, on behalf of the CCJPA, substantially in the form presented to this meeting, and attached hereto as Exhibit A, including any provisions that will provide additional Capitol Corridor train and feeder bus service from funds authorized and allocated by the State.

AND BE IT FURTHER RESOLVED, that, subject to appropriate legal review and execution by the parties, the said FFY 2005-06 Fixed Price Agreement shall be effective as of October 1, 2005.

AND BE IT FURTHER RESOLVED, that the FFY 2005-06 Fixed Price Agreement shall, when executed, supersede and replace in its entirety the FFY 2004-05 Fixed Price Agreement, which expires by its terms on September 30, 2005.

AND BE IT FURTHER RESOLVED, that the CCJPA Board forthwith transmit a copy of this resolution to Amtrak, the State of California Business, Transportation and Housing Agency, and California Department of Transportation Division of Rail.

# # #

ADOPTED September 21, 2005

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 10 Item V.3 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: CCJPA FY 06 MARKETING PLAN

PURPOSE For the CCJPA Board to authorize the CCJPA Executive Director to enter into an agreement with Glass McClure Advertising, Inc. (August 2, 2004) for the CCJPA’s share of related print, radio, outdoor and production costs for the CCJPA’s Capitol Corridor marketing plan for FY 2005-06.

BACKGROUND The CCJPA’s total marketing budget for FY 2005-06 is $1,174,000 and will fund the following activities:

- Joint advertising campaigns and promotions with Caltrans and Amtrak; - Development of promotional materials (e.g., Timetables, Annual Performance Report); - Joint Community Outreach Activities; - Promotional Partnership Development; - College, Seniors, and other Targeted Marketing Campaigns - Website enhancement and maintenance; and - Miscellaneous marketing activities to raise the awareness of the Capitol Corridor Service.

Included in the marketing program, the CCJPA retains the services of advertising and marketing agencies to support the CCJPA’s marketing plan. Pursuant to CCJPA Resolution 04-4, the CCJPA entered into a two-year agreement (FY 2004-05 – FY 2005-06) with Glass McClure Advertising, Inc. in conjunction with Glass McClure’s two-year contract (FY 2004-05 – FY 2005-06) with California Department of Transportation Division of Rail to support the CCJPA’s marketing initiatives. The budget with Glass McClure for FY 2004-05 was $575,000 and the proposed budget for FY 2005-06 is $645,000.

For the FY 2004-05 Marketing Plan, the CCJPA and Glass McClure developed a cost-effective marketing plan that will focus on targeted promotions for increasing weekend and business travel on Capitol Corridor trains, and enhance overall brand awareness.

Since the rules and regulations of the CCJPA require that the CCJPA Board approve any contract or procurement of $100,000 or more, staff and the SCG request the CCJPA Board to authorize a financial commitment of $645,000 for the FY 2005-06 advertising agreement with Glass McClure, subject to allocation of sufficient funds from the state for FY 2005-06.

RECOMMENDATION The SCG recommends that the CCJPA Board authorize the CCJPA Executive Director to initiate the second year of the two-year agreement with Glass McClure Advertising, Inc. for marketing advertising services during FY 2005-06 for an amount not-to-exceed $645,000 (pending FY 2005-06 funding allocation from the state) for the CCJPA’s share of related print, radio, outdoor and production costs.

Motion: The CCJPA Board adopts the attached resolution.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 11

BEFORE THE CAPITOL CORRIDOR JOINT POWERS AUTHORITY BOARD OF DIRECTORS

In the Matter of Approving the Agreement with Glass McClure Advertising, Inc. for Marketing Advertising Contract for Fiscal Years 2004-05 / 2005-06 Resolution No. 05-9

WHEREAS, the CCJPA working with Amtrak will provide train service in the Capitol Corridor for twenty-four weekday (and eighteen weekend) trip trains for Fiscal Year (“FY”) FY 2005-06; and

WHEREAS, the CCJPA plans to conduct targeted promotions and advertising for increasing weekend and business travel on Capitol Corridor trains for FY 2005-06; and

WHEREAS, to gain cost efficiencies in its marketing budget, the CCJPA retained the services of Glass McClure Advertising, Inc. through Glass McClure’s contract (two-year term, FY 2004-05- FY 2005-06) with California Department of Transportation Division of Rail to support the CCJPA’s marketing plan for FY 2004-05 and FY 2005-06; and

WHEREAS, to maintain these efficiencies in its marketing budget, the CCJPA entered into an agreement for the two-year period of FY 2004-05- FY 2005-06, with an agreed-upon scope of work, schedule and budget to support the CCJPA’s FY 2005-065 Marketing Plan; and

WHEREAS, the CCJPA’s share of print, radio, outdoor and production costs related to such marketing promotions is a total budgeted amount of $645,000 FY 2005-06, pending funding allocation from the state for FY 2005-06; and

WHEREAS, the CCJPA believes that it is in the best interest of the Capitol Corridor to start the second year of the two-year agreement with Glass McClure in order to effectively and efficiently market and promote the Capitol Corridor Service;

RESOLVED, that the CCJPA Board hereby authorize the CCJPA Executive Director or his designee to activate the second year enter of the two-year agreement with Glass McClure Advertising, Inc. for marketing advertising services for FY 2005-06 for an amount not-to-exceed $645,000 for the CCJPA’s share of related print, radio, outdoor and production costs (pending FY 2005-06 funding allocation from the state).

# # #

ADOPTED September 21, 2005

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 12 Item VI.4 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: PROPOSED FY 2005-06 BUDGET/LEGISLATIVE MATTERS

PURPOSE To provide the CCJPA Board with an overview of the proposed State Budget for FY 2005-06 and legislative matters affecting Capitol Corridor Service.

BACKGROUND Legislative Matters State Legislation AB 765 (Salinas) – Rail feeder bus service [CCJPA POSITION- WATCH] This bill is an effort to continue to provide some type of public transport in areas not served by private bus service, which has become more apparent with Greyhound’s recent proposal to eliminate service to 64 cities in California. Existing law currently allows Caltrans and the CCJPA to provide funding to Amtrak for the purpose of entering into a contract with a motor carrier of passengers for the intercity transportation of passengers connecting to or from a train. This bill would allow an exclusion for certain local public motor carriers to serve passengers only within their service where there is no other intercity bus company with a specific reference to the Monterey-Gilroy-San Jose bus route. Status: Passed Senate with amendments and concurred by Assembly on Sept. 1. To enrollment and Governor’s office.

AB 948 (Oropeza) – Rail agency Design-Build Projects [CCJPA POSITION- SUPPORT] AB 948 (Oropeza) proposes to eliminate the current prohibition on rail agencies using design build procedures on rail projects costing less than $50 million. The CCJPA as well as other rail agencies would benefit from this bill by reducing the threshold on build-build projects and thereby allowing for the consolidation of smaller project phases under a single design-build structure could reduce administrative expenses, and expedite project delivery. The CCJPA sent a letter of support to the author. The bill passed the Assembly and will be heard in the Senate Transportation and Housing Committee. Status: To inactive file per Senate Transportation and Housing Committee.

AJR 18 (Jones, Leslie) – Amtrak [CCJPA POSITION- SUPPORT] This bill was passed by the Senate with the Assembly concurring vote on September 1, 2005. This bill as approved by the State Legislature does not have to go to the Governor for signature. AJR 18 as approved states California’s support for an Amtrak FY 2006 budget of $1.82 billion and sends a strong signal to Congress that the largest state in the nation needs a fully-funded Amtrak to support the nation’s intercity passenger rail system. Status: Enacted.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 13 AB 1067 (Frommer) – Railroad safety [CCJPA POSITION- SUPPORT] This bill is in response to Metrolink incident in Glendale. This bill enhances the penalties for certain rail-related crimes and proposes to change the funding shares for the State’s program. As most, if not all, commuter and regional rail operators support his bill, the CCJPA sent a letter of support to the author. Status: Passed Senate with amendments and concurred by Assembly on Sept. 7. To enrollment and Governor’s office.

Federal Legislation S. 1516 (Lott) - Amtrak Reauthorization [CCJPA POSITION- SUPPORT] Senator Lott introduced S. 1516 titled, “Passenger Rail Investment and Improvement Act of 2005.” The bill currently has six cosponsors – Senators Burns (MT), Hutchinson (TX), Inouye (HI), Lautenberg (NJ), Rockefeller (WV), and Stevens (AK). The focal points of this bill is a 6-year (FY 2006-FY 2011) comprehensive funding authorization for Amtrak plus for the first-time ever a source of capital funds for state intercity passenger rail programs (80% federal portion with a 20% local/state match). Per the authorization program for Amtrak, the operating and capital grants will be separate actions. In addition, reforms are proposed for the Amtrak organization including the Board of Directors and an improved financial accounting system. All Amtrak allocations will be based on a 5-year financial plan. A total of $6.312 billion is available for capital grants, which will be phased-in with increasing shares available for states. For the first few fiscal years (FY 2006 and FY 2007), most of the funds (89%-97%) will go towards getting the Northeast Corridor to a state-of-good-repair; however, for the remaining years the portion of capital funds for states increases from 23% to 33%. Currently the bill allows for state capital projects to use funds from as early as 2004 to be used as a match for this capital program. (The CCJPA has over $60 million available in capital funds available from 2004.)

It is recommended that the CCJPA Board send a letter of support for this bill. In all likelihood, any favorable movement on this bill may be done in concert with Congressman Young’s passenger rail bills - H.R. 1630 (proposed $2B annual Amtrak Reauthorization for FY 2006-2008) and H.R. 1631 (RIDE- 21). Status: Passed out of in Committee on Commerce, Science, and Transportation on July 28.

RECOMMENDATION The SCG recommends that the CCJPA Board authorize the CCJPA Executive Director to submit a letter(s) of support or opposition for actions relating to the proposed legislative matters affecting Capitol Corridor Service, including modifications as provided by the CCJPA Board.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 14 Item VI.5 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: CCJPA ON-BOARD AUTOMATED TICKETING/VALIDATION PILOT PROGRAM

PURPOSE For the CCJPA Board to authorize staff to enter into agreements necessary for the CCJPA to implement a pilot program that will provide automated ticketing/validation units on the Capitol Corridor trains.

BACKGROUND Over the past year, staff has been working with Amtrak to introduce hand held computer units that would improve ticketing and validation on Capitol Corridor trains. Caltrans Division of Rail has been supportive of this project and concurred with the proposal for the CCJPA to provide conductors with such units on the Capitol Corridor trains as a pilot program with the intent that these units would then be introduced on the San Joaquin trains. In fact, Caltrans Rail staff has been able to secure $350,000 in Department of Homeland Security (DHS) funds through Caltrans Division of Security. The total project budget will be $450,000 (the DHS grant plus $100,000 in CCJPA Revenue Credit funds).

Some of the primary functions of this pilot program include the following: - Ticket validation: Information will be captured via ticket readers on the units and transmitted via cellular digital packets similar to the real time message signs system; - Ultimately this program will be integrated into the full build-out of the Wireless Internet service installed on the entire state-owned Northern California fleet; - Seat checks (destination, date) will be issued to verify ticket validation - Eventual requirement that all boarding passengers will have a ticket (ticket vending machines will be available at all staffed/unstaffed stations by Spring 2006) - Records/validates use of multi-ride tickets (10-ride, and monthly) to eliminates fraud - Captures name of every passenger on-board between every station (real-time ‘manifest’) as a security measure - Calculates revenue collected by train; remote access before train arrives at final destination - Allows for on-board sales, accepting cash, debit/credit cards (and SMART cards – value stored) Later phases of program - Transmits information/authorization via on-board Wi-Fi communication - Remittance of revenue already calculated before crew deposits revenue - Allows food/beverage service ‘point-of-sale’ information to be transmitted en route, allowing ‘restocking’ if unusual demand depletes on-board supplies - Provides revenue sales by train by item; minimizes condemnage, maximizes revenue

The implementation plan for the pilot program is to have the CCJPA secure internal BART staff and consultants familiar with bar code and magnetic stripe unit readers to develop a procurement document and, working with Caltrans and Amtrak, select a vendor based on the responses to the procurement request. Amtrak could then evaluate the potential to include this program in its national system as applicable. G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 15

Initial project team meetings have begun with the main intent of developing the functional specifications, determining the need for any specialized equipment, and establishing the mechanism for the transfer of passenger data from the Amtrak mainframe computer system to the remote ticket validation server.

Since the rules and regulations of the CCJPA require that the CCJPA Board approve any contract or procurement of $100,000 or more, staff and the SCG request the CCJPA Board to authorize staff to enter the necessary funding and development agreements to implement the hand held ticketing/validation pilot program.

RECOMMENDATION The SCG recommends that the CCJPA Board authorize the CCJPA Executive Director to enter into the necessary funding and development agreements for the implementation of an automated ticket validation pilot program for the Capitol Corridor trains.

Motion: The CCJPA Board adopts the attached resolution.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 16

BEFORE THE CAPITOL CORRIDOR JOINT POWERS AUTHORITY BOARD OF DIRECTORS

In the Matter of Entering into Agreements For the Capitol Corridor Joint Powers Authority On-Board Automated Ticketing/Validation Pilot Program/ Resolution No. 05-10

WHEREAS, CCJPA staff has been working with Amtrak to introduce automated units that would improve ticketing and validation on Capitol Corridor trains; and

WHEREAS, Caltrans Division of Rail has been supportive of this project and concurred with the proposal for the CCJPA to provide conductors with such units on the Capitol Corridor trains as a pilot program with the intent that these units would then be introduced on the San Joaquin trains; and

WHEREAS, the CCJPA had been able to secure $450,000, comprised of $350,000 in Department of Homeland Security (DHS) and $100,000 in CCJPA Revenue Credit funds, for the purposes of installing remote ticketing and real-time passenger lists/manifests as a pilot program; and

WHEREAS, to proceed with pilot program and meet the DHS grant deadline, the CCJPA would develop a procurement document, and working with Caltrans and Amtrak, select a vendor to implement the pilot program;

RESOLVED, that the CCJPB does hereby authorize the CCJPA Executive Director or his designee to enter into the necessary funding and development agreements for the implementation of a hand held ticketing pilot program for the Capitol Corridor trains.

AND BE IT FURTHER RESOLVED, that the CCJPA forthwith transmit a copy of this resolution to Caltrans Division of Rail and Amtrak.

# # #

ADOPTED September 21, 2005

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 17 Item V.6 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: August 7, 2001

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: 2006 STIP CAPITOL CORRIDOR INTERCITY RAIL PROJECT LIST

PURPOSE For the CCJPA Board to approve and submit to Caltrans a prioritized list of rail projects in the Capitol Corridor for the 2006 State Transportation Improvement Program (STIP).

BACKGROUND In Spring 2005 CCJPA staff was informed from Caltrans that Project Study Reports (PSRs) were requested for any projects in the Capitol Corridor to be nominated for funds from the 2006 STIP. These PSRs are due to Caltrans in mid-September 2005.

Staff then notified all likely project sponsors in the corridor of their interest in submitting projects to be included in the CCJPA's 2006 STIP project list. It was requested that all project sponsors prepare PSRs requesting 2006 STIP funds and submit the reports to Caltrans and the CCJPA since the CCJPA will be the clearinghouse for these PSRs and will be requested by Caltrans and the California Transportation Commission (CTC) to prioritize and rank any STIP Capitol Corridor projects.

To date, the CCJPA has compiled a list of seven (7) projects to be nominated for the 2006 STIP. The project sponsors (including the CCJPA) are requesting $81.5 million in 2006 STIP for Capitol Corridor intercity rail projects, which is supported by $286.3 million in matching funds, representing a 78% financial commitment by partner agencies.

CCJPA staff and the Staff Coordinating Group (SCG) ranked the projects according to criteria previously approved by the SCG. The next step in the process requires CCJPA Board action to approve the project ranking and submit the prioritized projects to Caltrans for inclusion in the 2006 STIP, which will eventually be adopted by the California Transportation Commission (CTC) in April 2006. Exhibit A of the attached resolution provides the project information for consideration by the CCJPA Board.

RECOMMENDATION The SCG recommends that the CCJPA Board approve the attached resolution that ranks the list of intercity rail projects endorsed by the CCJPA in the Capitol Corridor for Caltrans’ nomination as part of the 2006 State Transportation Improvement Program.

Motion: The CCJPA Board adopts the attached resolution.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 18

BEFORE THE CAPITOL CORRIDOR JOINT POWERS AUTHORITY BOARD OF DIRECTORS

In the Matter of Submitting to Caltrans a Ranking of Capitol Corridor Intercity Rail Projects for the Year 2006 State Transportation Improvement Program / Resolution No. 05-11

WHEREAS, the California Department of Transportation ("Caltrans") has requested various State and regional transportation agencies, including the Capitol Corridor Joint Powers Authority, to nominate projects for the 2006 State Transportation Improvement Program (“STIP”); and

WHEREAS, the CCJPA compiled a list of projects for the 2006 STIP to meet the CCJPA’s goals for service expansion, improved reliability, and reduction in train travel times; and

WHEREAS, the CCJPA Staff and Staff Coordinating Group (SCG) ranked the list of submitted 2006 STIP projects according to criteria that reflect the goals for service expansion, improved reliability, and reduction in train travel times; and

RESOLVED, that the CCJPA Board hereby provides to Caltrans, the nominated and ranked intercity rail projects in the Capitol Corridor to be nominated for the Year 2006 State Transportation Improvement Program, in the form appended hereto as Exhibit "A" in the total amount of $81.5 million, such prioritized project list to be further updated by the CCJPA as information becomes available.

AND BE IT FURTHER RESOLVED, that the CCJPA forthwith transmit a copy of this resolution to Caltrans and the California Transportation Commission.

# # #

ADOPTED September 21, 2005

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 19

EXHIBIT A

RANKING OF CAPITOL CORRIDOR INTERCITY RAIL PROJECTS 2006 State Transportation Improvement Program Capitol Corridor Joint Powers Authority

DRAFT

Project Total Costs CCJPA Local TOTAL Rank Project Title Project Description Sponsor ($M) Request Match Local Source (Max 85 pts) Construct platform and track improvements for parallel and moves at the north and south approaches of the Station and CCJPA $7.500 $7.500 $0.000 Track Improvements improve freight rail access into/out of . 1 67 In conjunction with Dumbarton Rail project, support Union City Intermodal Station improvements and associated track Dumbarton Rail RM-2, ITIP, improvements to allow Capitol Corridor trains to serve the $300.500 $39.000 $261.500 Project/Union City RTIP, local BART station plus reduce travel times and improve Intermodal Station reliability. 2 66 West causeway high-speed universal crossovers. Location Yolo Causeway Crossovers CCJPA $6.000 $6.000 $0.000 3 and size (#24s) already have UPRR agreement 60 In a partnership with the private developer of the UPRR Railyard Project, finance share of improvements to support Sacramento Station new new grade-separated platforms and track infrastructure as platform and grade Amtrak $5.000 $5.000 $0.000 part UPRR's relocation of mainline tracks. Does not include separation access the construction of a new station building or the relocation of the existing depot facility. 4 55 Install wireless internet networks on all northern California fleet in connection with install of free or low-cost internet Wireless Internet for Fleet CCJPA $3.000 $1.500 $1.500 Caltrans service for customers on Capitol Corridor and San Joaquin 5 services. 50 Add a Capitol Corridor Station as part of a transit oriented City of TCRP, Local, $28.400 $12.000 $16.400 6 development along the City's waterfront. Hercules RTIP 39 Expand parking on the north west side of the station and Martinez Parking City of connect with the pedestrian overpass planned to extend $17.400 $10.500 $6.900 Local, RTIP Expansion Martinez 7 from the existing station. 34 TOTAL $367.800 $81.500 $286.300

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 20 Item VI.7 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: RESULTS OF CCJPA JUNE 2005 ON-BOARD SURVEYS

PURPOSE To provide the CCJPA Board with an overview of the results of the CCJPA’s June 2005 on-board surveys.

BACKGROUND Under its annual FY 2004-05 fixed-price operating agreement, the CCJPA conducts two on-board surveys to gauge the performance of Amtrak based on the passengers’ responses to questions relating to Amtrak’s station agents and on- board crew members. The second survey of this contract year was conducted in mid-June 2005. In order to better understand the passengers’ rating of the service, the survey was divided into eight questions for station staff and six questions for on-board crews. Passengers rated their satisfaction levels (1-low to 5-high). 2,513 completed surveys were collected, greatly surpassing the survey sample goal of 500. The responses to the questions resulted in Amtrak station staff receiving a composite score of 4.09 and on-board crews receiving a score of 4.26. Both scores were equal to the average of the scores for all the prior eleven (11) on-board surveys. Areas of improvement include station cleanliness and conductor announcements. Staff will continue to work with Amtrak to improve its performance as rated by the Capitol Corridor passengers.

In addition to the questions relating to Amtrak’s performance, the June 2005 survey also included questions to receive input from Capitol Corridor passengers’ demographic information. Provided below are summary tables of the current ridership profile for Capitol Corridor trains surveyed in June 2005:

Mode June 2005 (%) Jan. 2005 (%) drove alone 23.8 24.1 dropped off 26.5 25.1 Amtrak Thruway bus 7.8 9.3 local transit 14.4 15.6 walked 14.9 15.6 carpool 3.6 1.9 bike 5.7 5.5 taxi 2.6 2.2 other (inc. Amtrak train) 0.8 0.7 TOTAL 100.0 100.0

Purpose June 2005 (%) Jan. 2005 (%) Ticket type June 2005 (%) Jan. 2005 (%) business/work trip 54.8 59.4 one-way/round trip 53.2 48.0 visit family/friends, leisure 31.2 27.5 45-day 10-ride 20.7 23.5 school 3.1 5.8 monthly 26.1 28.5 personal/family business 5.0 3.9 TOTAL 100 100 shopping/vacation 5.7 3.1 Other 0.2 0.3 TOTAL 100 100

RECOMMENDATION For discussion.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 21

Date: 13 September 2005 Item VI.8

From: Eugene K. Skoropowski

To: CCJPA Board

Subject: Managing Director’s Report – September 2005

SPECIAL NOTICE and INVITATION to CCJPA Board Members

The September 2005 CCJPA Board Meeting will be held in Oakland at the New BART Board Room, 344 20th Street, Oakland, 3rd Floor, 10.00am, Wednesday, Sept. 21 (2 blocks from BART 19th Street Station in Oakland) (Parking is also available in the parking garage behind the building, enter from 20th or 21st Sts.)

Immediately following the Board Meeting, all CCJPA Board Members are invited to lunch at the new BART-provided Capitol Corridor Offices at 300 Lakeside Drive, 14th Floor (300 Lakeside is adjacent to the 344 20th St. BART Board Building). CCJPA Staff will be available to show you the new offices and share our plans and activities for the upcoming year. Please join us so we can show you our new office facilities.

Overview: Ridership: Our ridership still continues to grow. Now, after 11 months into the current fiscal year, we have seen a +8.0% increase (October 2004 through August 2005). Since the last Board Meeting, June, July and August 2005 have reached record all-time high in riders for their respective months. June ridership was 113,000, a healthy +9.4% growth above June 2004. July 2005 also showed growth, with ridership of 101,897, a respectable +3.4% growth above July 2004. August ridership was 108,225, a growth of +6.4% above August 2004. On-time performance has begun to improve, and we have moved a bit above 85%, now slightly better than a year ago. While this year-to-date on-time performance is the still the best of any Amtrak service in the West (Pacific Division) and among the best in the country, it remains below our service standard of 92%.

The importance of on-time reliability can never be overstated. We are continuously working with Union Pacific to restore the 90%-plus on time reliability that was achieved for six consecutive months starting about a year ago. Regular riders, and folks who may have initially tried the train due to the escalating price of gasoline appear to be ‘sticking with us’.

Some of the reason for this retention is that Union Pacific is concentrating its initial effort at reliability improvements on the morning and evening peak travel periods, and on those trains with the heaviest and most time-sensitive ridership. The number of on-time trains for the current month improved to 83%, a nine percentage point improvement, and the number of riders being delivered on-time to their destinations may now be as high as 90%. We are continuing to analyze the origin-destination on-time performance.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 22 Revenue: Revenue also continues to grow, and is continuing to outpace the growth in riders with a year- to-date growth of + 16% for the 11 months of the fiscal year, while ridership is up +8.0%, for the same period. The main reason for the revenue growth is retention of regular riders, and continuing dramatic growth of weekend, holiday, and mid-day travel. Weekends are especially strong, and riders are almost evenly spread throughout the day, with very good average train loadings. Again, the rising gasoline prices may have prompted people to ‘try us’, and many of them stay with us. June 2005 revenue was +15% above last year, July 2005 revenue was +8% above last year, and August revenue was +16% above last year, making 11 consecutive months where revenue has exceeded Business Plan projections. This is the first time where revenues have exceeded Business Plan every month of the fiscal year.

Revenue-to-Cost Ratio: Revenue growth and our cost-controlled fixed price agreement with Amtrak has resulted in the first eleven months of our fiscal year having an operating ratio of about 45%, substantially higher than at any time in the history of the Capitol Corridor service, and well above last year’s 38% recovery. With only one month to go in the fiscal year, we should achieve 45% revenue recovery for the year, making this our best financial year ever.

Service Levels: The frequency of trains remains the same at 12 round trips on weekdays, and 9 round trips on weekends. This frequency has been constant since April 2003, and will remain the same through the remainder of calendar year 2005 and into early 2006. The growth in business would be described by the transport industry as “pure growth”, meaning that we did nothing different in the service to ‘stimulate’ a change. In fact, it is not unreasonable to conclude that this ridership growth is ‘bucking all conventional wisdom’ in that we have continued our incremental fare adjustments (about 5%) every 6 months, and yet riders keep coming.

While we have continued to pursue the extension of four trains with Union Pacific to/from Roseville, and two to/from the other Placer County stations, the freight congestion problems in and around Roseville Yard has caused UPRR senior management to inform us that UPRR is unable to accommodate any additional Capitol Corridor East of Sacramento for the foreseeable future. We know that this is a vast market, just waiting to be ‘tapped’. UPRR is developing a long-term strategy to try to resolve these capacity and congestion problems on their railroad, but we are not optimistic about the possibility of added service to Placer County in the near term.

On-Time Performance: Following a deterioration of Union Pacific dispatching performance in June and July, August has seen a decided turn for the better, ending the month at 83%, 9 percentage points better than the 74% in July. Amtrak’s mechanical reliability has improved substantially, with very few en-route delays. The majority of mechanical problems have involved the HEP (generators) that provide lights and power to the coaches. We are working with Amtrak, the State and Caterpillar (the manufacturer of the HEP units) to improve reliability of these on-board generators.

Amtrak Financial Situation: It is unlikely that an authorization or appropriation bill for Amtrak will make it through Congress before November, meaning a ‘continuing resolution’ will be enacted for Amtrak to operate beyond September 30.

The House subcommittee on Transportation increased the Administration’s budget proposal from ‘zero’ to $550 million. The Full House increased the subcommittee’s recommendation for $550 million to $1.2 billion. The Senate subcommittee dealing with Amtrak increased the House amount from $1.2 billion, to $1.4 billion, and then raised it again to $1.45 billion. All these funds come with substantial internal reform to Amtrak.

As expected, Senator Trent Lott (R-Mississippi) and 3 other Republican Senators and 3 Democratic Senators introduced Senate Bill 1516. This proposed bill incorporates all the elements of the Laney G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 23 Plan, plus provides Amtrak with 6-year reauthorization and funding for the same period. Operating funds are separated from capital funding, and a specific amount of capital is designated for ‘federal match’ so that states can begin to ‘pull down’ an 80% federal capital match, if the state puts up 20%. Senate Bill 1516 also would allow California to take some ‘credit’ for its already ‘sunk funds’ in the state’s rail program.

The California Legislature, both Assembly and Senate, adopted a bi-partisan Joint Resolution in support of Amtrak and its proper funding, including the establishment of a federal capital funding share to be matched by states for intercity passenger rail service. We are working with our sister California intercity bodies (LOSSAN, San Joaquin) for an appropriate ‘thank you’ ceremony to recognize the sponsoring legislators for their leadership on this issue.

State Initiatives in support of Amtrak: The state DOTs are continuing their ‘push’ for a federal funding share for intercity rail capital improvements, a concept now picking up significant media attention and being promulgated by several prominent Republicans, as well as Democrats. A bi- partisan, three-year funding bill has been introduced in the House in Washington (HR 1630), and a bi- partisan federal capital funding bill (HR 1631) has also been introduced by the Republican Committee Chairs and the Democratic ranking members. It is likely that Senate Bill 1516 and these two House Bills will emerge as one piece of legislation, as many of the components of each are common to each other.

A key issue requiring resolution is the use of tax-credit bonds to generate the capital funds for investment. An amendment to the US Tax code will be required. We are watching these bills closely.

With the support of the American Association of Highway and Transportation Officials (AASHTO, the highway planners, highway policy makers and state highway officials) now advocating for a national passenger rail policy and system, the timing is as good as it has ever been for some new funding initiative. Hurricane Katrina’s havoc and the price of gasoline are beginning to ‘wake up’ even those in Washington DC that another form of transport in this country besides the auto needs to be available for our people.

Construction Projects: Oakland-San Jose Track Construction Progress: The last major component of construction at Newark Junction will be done the weekend of September 23-26. The Newark Junction project is expected to be turned over to operations by the end of September. The UPRR/Caltrain CP Coast project is expected to be turned over to operations by the end of February 2006, or early in March 2006.

Dumbarton Rail/Union City Intermodal Station: Public hearings have been held with several design changes recommended to make the project more acceptable to some of the abutters. Possible land acquisition is proceeding so that the project and the Capitol Corridor relocation of service can take place as soon as possible. BART is spearheading the negotiations with Union Pacific for acquisition of the rail line required for this service.

Station Projects:

Hercules Station: The City of Hercules is continuing its design and financing plans for this station, and has engaged a respected architectural and engineering firm to assist them. A kickoff meeting at Union Pacific’s offices is scheduled for September 14 in Roseville.

Fairfield/Vacaville: The City of Fairfield prepared a revised project program, as suggested by UPRR, and plans and a program have been submitted to UPRR for review, comment, and approval. UPRR is G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 24 reviewing the alternative track and platform options, with the goal of selecting a design they are satisfied is safe for passengers while also protecting the fluidity of the railroad.

Other Activities: Auburn-Sacramento-Richmond-Oakland Regional Rail Service: An initial start-up of service (filling available CCJPA-owned slots) between Sacramento and Oakland is now being pursued. The opportunity presented itself when schedules were being developed to take advantage of the new slots to/from San Jose. The ability to cycle existing trainsets for more time in ‘service’ and less time in ‘layover’, means that 8 trains (4 more round-trips) can be added between Sacramento and Oakland, without more trainsets. There will still be a need for additional coaches to expand capacity, but the need appears to be substantially less than initially envisioned. Some ‘local subsidy’ may be required for these added trains, and the five counties participating in the Sac-Oak Regional Rail study are prepared to evaluate their options. The ultimate scope of the program remains the same, but the implementation is now divided into more than the initially defined two phases.

Marketing: Status report to be provided under separate cover.

Outlook: FY 2005 looks as if it will be a record year for growth on the Capitol Corridor. Reliability will continue to be our biggest, and most critical component for continued growth, followed closely by the need for more rolling stock. We will continue to keep in close contact with UPRR and Amtrak to ensure that the Capitol Corridor trains are once again operating at 90% or better on-time performance.

In closing, all indicators are pointing towards achievement of a long awaited goal: almost hourly service between Oakland and Sacramento, doubling the frequency of service to/from San Jose, controlled costs, record ridership and revenue that are still growing, and a cost recovery now approaching 50%. This is still being accomplished while we are living within a fifth year of a ‘flat’ state funding allocation.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 25 Item VI.9 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

MEMORANDUM

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: WORK COMPLETED (September 21, 2005 MEETING)

PURPOSE To provide a report on work completed up to the September 21, 2005 CCJPA Board meeting.

BACKGROUND The following is a report on recently completed work:

a. Vision Plan Update. As adopted by the CCJPA Board at its June 15, 2005 meeting, staff prepared the final version of the Vision Plan Update based on comments on the draft document provided by the Board, SCG, and the public during the February 16, 2005 board workshop and subsequent meetings. The update to the Vision Plan will establish goals and objectives for the CCJPA Board and staff in the operations, marketing, and customer service of the Capitol Corridor.

b. Berkeley Capitol Corridor Train Station Improvements. The City of Berkeley has completed its improvement program for its phase of the train station improvement project, which includes a high level platform, new plaza waiting area, added landscaping, lighting upgrades, benches, and more informational signs. A grand opening celebration is scheduled for Saturday, September 17, 2005.

c. Marketing Activities (June – August 2005). The following work has been completed as part of the CCJPA’s FY 2004-05 and 2005-06 Marketing Program:

- Stitch ‘n’ Ride – the Capitol Corridor’s on-board knitting program, earned a 1st place in the Public Relations/Awareness category for APTA’s AdWheel Award competition. The three- month long weekly program brought knitting instructors on board the train to teach passengers new knitting techniques, and was designed to emphasize what makes riding the train different than driving a car. The program earned press coverage in the SF Chronicle, the Sacramento Bee, the Contra Costa Times, television’s Evening Magazine, and even a mention in the New York Times. - Summer Weekend Free Companion Fare Promotion - was promoted in print ads and in movie theaters (Auburn, Davis and Sacramento) to retain and build the interest of leisure travelers this summer, specifically targeted towards travel to the Oakland Coliseum for sporting events and the Oakland Airport for summer getaways. Final results still pending, but initial reports indicate that the promotion was successful. - Cal Football Promotion kicked off on September 3 vs. Sac State – about 60 passengers took the train to the game, some of which took part in a pre-game tailgate at Pyramid Brewery. - Call Center Transition:

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 26 1. Training: classroom sessions and sessions on the train were held for the new call center representatives to familiarize them with the Capitol Corridor service. Comprehensive training materials were assembled to facilitate their grasp of Capitol Corridor operations. 2. Group Travel workflow/logistics: working with Amtrak and BART to ensure smooth transition of group travel process to the new Call Center. 3. Publicity: direct mail postcard announcing new phone number will drop late September, press release is in development, web banners and e-newsletter will also announce the new number 4. Promotional Materials: a variety of promotional materials have been reprinted to reflect the new phone number and ensure consistent messaging - Recent Events: i. Stitch ‘n’ Ride to TKGA, July 23: brought knitters/crocheters to the TKGA fiber arts expo at Oakland Convention Center, promoting the BART connection ii. San Jose Grand Prix: July 29-31, developed Transit Guide with other transit agencies to promote taking alternate transportation to the event. iii. Fremont Festival of the Arts, August 6-7 iv. Rider Appreciation, August 19: offered penny wine-tastings of the new onboard wine selections, and samples of new menu offerings v. Capitol Corridor Month on BART: This month-long promotion highlighted the two connections between BART and Capitol Corridor. Over four thousand Capitol Corridor 20% off coupons were given to BART patrons, along with free Frappucino samples from the Starbucks Chill Patrol. Capitol Corridor was also featured on MyBART, BART electronic station destination signs, and the BART Website. vi. Oakland Art & Soul Festival: Capitol Corridor and jointly sponsored this three-day multicultural event held over Labor Day Weekend. Large banners were posted at several performance stages, announcements were made, and bounce-back coupons were distributed.

RECOMMENDATION For information only.

G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 27 Item VI.10 CAPITOL CORRIDOR JOINT POWERS AUTHORITY ______

TO: Capitol Corridor Joint Powers Board DATE: September 13, 2005

FROM: Thomas E. Margro Executive Director, CCJPA

SUBJECT: WORK IN PROGRESS (September 21, 2005 MEETING)

PURPOSE To provide an update on work in progress up to the September 21, 2005 CCJPA Board meeting.

BACKGROUND The following is a report on work efforts currently underway: a. Status of UP Design/Engineering and Capacity Analyses. Based on subsequent discussions with UPRR senior management, UPRR has further delayed any decision on its operating needs in the Roseville Yard area and beyond to Reno. No particular or detailed timeframe was presented, but it was clear that the work stoppage on all network capacity analyses and computer simulation runs between Oakland and Sacramento/Reno would continue for any proposed new services/extensions. Meanwhile, discussions are occurring intermittently between UPRR and Port of Oakland (with little or no progress) on the Port’s strategic expansion plan with respect to freight rail access into/out of the Port. The results of these discussions/plans will be folded into the next network capacity analysis when this work recommences. As stated previously, staff will ensure that UPRR’s commitments to support CCJPA’s existing and planned increase for added trains between San Jose and Sacramento are maintained pursuant to the CCJPA’s investment in the UPRR infrastructure. b. Oakland-San Jose Track Improvement Project. The construction program to allow the CCJPA to add more trains to/form San Jose is nearing completion. The construction program consists of three elements: (1) track and signal track upgrades between Oakland Jack London Station and Elmhurst junction in southeast Oakland, which is complete and will support the new Oakland Coliseum Intercity Train station; (2) double tracking project in Newark and Fremont, which is expected to be done in late September 2005; and (3) track and yard upgrades at Control Point (CP) Coast at the junction of the UPRR and Caltrain tracks in Santa Clara/San Jose, which is expected to be completed in early April 2006. Once all three elements are done, the CCJPA, using existing train equipment and operating funds, will immediately expand service to/from San Jose to 14 daily trains (7 in each direction). c. Revisions to CCJPA Station Policy and Service Policy. Staff has been updating and revising the CCJPA’s policies on stations and train service based on the comments provided by the Directors from the June 15, 2005 meeting. Specifically, staff is researching the current data for station ridership activity (boardings, alightings) for a new standard, the impact of train extensions on the core service area, ability to leverage local financial requirements for facilities and marketing, and other comments presented by the Board Directors. It is anticipated that revisions to these policies will be presented at the November 16, 2005 CCJPA Board meeting in Suisun City. d. Regional Measure 2 Projects: Bahia-Benicia Siding, Fairfield Vacaville Station. Using the allocation of RM-2 funds from MTC, the CCJPA has begun environmental evaluation of the project area to determine impacts and permitting requirements based on UPRR’s preliminary design plans. G:\CCJPA Board Meetings\Agendas\AGENDA05.sep.doc 28 Using the results from the environmental site visits, the project team is currently completing its report which will determine the next phase of design plans to upgrade and extend the siding between the Bahia and Benicia yards, thus freeing up mainline track capacity for through movements.

Discussions are continuing with the cities of Fairfield and Vacaville and UPRR on the design plans for the planned Fairfield-Vacaville Station. As agreed to by the cities and UPRR, the grade separation at Peabody Road is moving as part of the project development plans. Conceptual design plans prepared by the project team is under review by UPRR. Once approval is granted, applications will be prepared to receive allocations of RM2 funds to finalize the design plans and construct the station (including any track infrastructure projects to support the station) and grade separation at Peabody Road. e. Upcoming Marketing Activities. - FY06 Advertising Fall Campaign: Capitol Corridor will kick off its fall campaign on October 3rd with radio traffic sponsorships in SF/SJ/SAC. Online advertising begins October 17th featuring everyday low fares between specific city pairs. - Holiday Shopping Made Simple Promotion - This year, our Holiday Shopper program will run for the entire season and feature a variety of discounts passengers can obtain by showing their train ticket at various retail locations in San Francisco. The program is set to launch in November 2005. - Oakland Football Tailgate Train debuts direct service to the new on October 2, 2005. Sacramento radio station 98 Rock will provide media exposure for the Tailgate Train, along with promotional support at Monday Night Football events held at local sportsbars. Additionally, CCJPA has entered into revenue-based agreement with MetroPCS to promote MetroPCS as the title sponsor of the Capitol Corridor Tailgate Train. - Cal Football Promotion: Capitol Corridor will have one radio commercial per game broadcast, videoboard exposure at the game - Free Companion Fare Coupon: Capitol Corridor is once again utilizing the Free Companion Fare Coupon as a way to encourage new riders to try our service. Coupons will be mailed out to Capitol Corridor’s direct mail list as well as distributed at local events & transportation fairs. - New Timetable will be published October 31, 2005 - Website: content reorganization to enhance customer navigation and promotional highlights. Website visits for August reached an all-time high of 129,996. - San Jose CVB – working with them to drive business to San Jose, planning a “fam” trip for meeting planners in upcoming months, promotion of unique-to-San Jose events, expanded role in next year’s Grand Prix, and publicity for springtime expansion of service - Upcoming Events: i. Oakland Car-Free Day: September 23, booth promoting train travel ii. Cal Football Fun Zones: 10/1, 11/12 iii. Oakland Tailgate Trains:10/2, 10/16, 11/13, 11/27, 12/18 iv. Rider Appreciation Event: November TBD

RECOMMENDATION For information only.

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