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SPECIAL BOARD OF DIRECTORS MAY 30, 2012 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY BOARD ROSTER SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY County Member Alternate Los Angeles: Richard Katz (Chair) Jaime de la Vega Member, General Manager, 4 votes Metro Board of Directors City of Los Angeles Department City of Los Angeles of Transportation Mayor Appointee Michael Antonovich Robert T. Bartlett Supervisor, 5th District Appointed by Metro County of Los Angeles Vice-Chair, Metro Board of Directors Don Knabe Beatrice Proo Supervisor, 4th District Appointed by Metro County of Los Angeles Metro Board of Directors Ara Najarian Maureen Micheline Councilman Transportation Deputy City of Glendale Metro San Bernardino: Patrick Morris (Vice-Chair) Larry McCallon* Mayor Mayor 2 votes City of San Bernardino City of Highland President, SANBAG Board of Directors Paul Eaton Alan D. Wapner* Mayor Council Member City of Montclair City of Ontario Orange: Paul Glaab Michael Hennessey* Mayor Appointed by OCTA 2 votes City of Laguna Niguel Chair, OCTA Board of Directors Carolyn Cavecche Mayor City of Orange One Gateway Plaza, 12th Floor, Los Angeles, CA 90012 SCRRA Board of Directors Roster Page 2 Riverside: Ron Roberts Greg Pettis* Council Member Council Member 2 votes City of Temecula Cathedral City Daryl Busch Karen Spiegel* Mayor Council Member City of Perris City of Corona Vice-Chair, RCTC Board of Directors Ventura: Keith Millhouse Brian Humphrey Councilmember Commission Member 1 vote City of Moorpark VCTC EX-OFFICIO MEMBERS Southern California Association of Governments: Michele Martinez Councilwoman City of Santa Ana San Diego Association of Governments: [CURRENTLY AWAITING APPOINTMENT] Contact: Linda Culp Principal Planner - Rail State of California/Caltrans: Michael Miles Director, Caltrans District 7 Alternate: [CURRENTLY AWAITING APPOINTMENT] *Alternates represent either member Revised 05.09.12 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY SCRRA SPECIAL BOARD OF DIRECTORS MEETING WEDNESDAY, May 30, 2012 10:00 a.m. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) BOARD ROOM ONE GATEWAY PLAZA, 3RD FLOOR LOS ANGELES, CALIFORNIA 90012 AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be discussed or transacted. The posting of the recommended actions does not indicate what action will be taken. The Authority may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. A person with a disability may contact the Board Secretary’s office at (213) 452-0255 or via email [email protected] at least 24-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Late requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Board Secretary, located at One Gateway Plaza, 12th Floor, Los Angeles, CA 90012, and on the Metrolink website at www.metrolinktrains.com under the Board Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Board of Directors regarding any item appearing on the agenda may do so by completing a Speaker’s Form and submitting it to the Board Secretary. Speakers will be recognized by the Chairman at the time the agenda item is to be considered. When addressing the Board, please state your name for the record. Please address the Board as a whole through the Chair. Please note comments to individual Board members or staff are not permitted when addressing the Board. A speaker’s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Board of Directors regarding any item not on the agenda, but within the subject matter jurisdiction of the Board, will be taken under Item 7 (Public Comment), and will be subject to the same guidelines as noted above. 1. Call to Order 2. Pledge of Allegiance One Gateway Plaza, 12th Floor, Los Angeles, CA 90012 SCRRA Special Board of Directors Meeting Agenda Transmittal Date: May 24, 2012 Meeting Date: May 30, 2012 Page 2 REGULAR CALENDAR 3. Public Hearing on Potential Fare Increase for Fiscal Year 2012-13 (FY13) and Title VI Service Delivery Policy At its meeting on April 27, 2012 the SCRRA Board directed staff to initiate a public outreach process to solicit feedback on a potential 5%, 6%, 7%, 8%, or 9% system- wide average fare increase that would take effect on or after July 1, 2012. The public comment period was opened at the SCRRA Board meeting of April 27, 2012 and will be continued to the May 30, 2012 Board of Directors meeting. The board report provides the California Environmental Quality Act analysis, Title VI analysis, a summary of public comments received regarding a potential fare increase, new Title VI service delivery policy and a staff recommendation for a fare increase. Staff recommends the Board: 1. Conclude the public outreach process that opened at the April 27, 2012 meeting to solicit comments on the proposed fare increase and Title VI Service Delivery Policy*; and, following the conclusion of the public outreach process: 2. Approve a 7% system-wide average fare increase for all tickets types, except for the Weekend Pass, that would take effect on or after July 1, 2012 to offset an increase in operational expenses. 3. Approve the Title VI Fare Equity Analysis. 4. Waive the 2004 Fare Restructuring Policy cap that limits any station pair to have a maximum increase at 8% for any station pair. A fare increase of 7% will generate an estimated $4.5 million to cover operational expenses. Page 1 4. Chief Executive Officer’s Report . Agency Update 5. Chair’s Comments 6. Board Members' Comments 7. Public Comment 8. ADJOURNMENT SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: May 2429, 2012 MEETING DATE: May 30, 2012 ITEM 3 REVISED MAY 29, 2012 TO TO: Board of Directors INCLUDE ENTIRE eCOMMENT PERIOD – ENDED MAY 29, FROM: Chief Executive Officer 2012 NOON SUBJECT: Public Hearing on Potential Fare Increase for Fiscal Year 2012-13 (FY13) and Title VI Service Delivery Policy Issue At its meeting on April 27, 2012 the SCRRA Board directed staff to initiate a public outreach process to solicit feedback on a potential 5%, 6%, 7%, 8%, or 9% system-wide average fare increase that would take effect on or after July 1, 2012. The public comment period was opened at the SCRRA Board meeting of April 27, 2012 and will be continued to the May 30, 2012 Board of Directors meeting. This report provides the California Environmental Quality Act analysis, Title VI analysis, a summary of public comments received regarding a potential fare increase and the new Title VI service delivery policy and a staff recommendation for a fare increase. Recommendation Staff recommends the Board: 1. Conclude the public outreach process that opened at the April 27, 2012 meeting to solicit comments on the proposed fare increase and Title VI Service Delivery Policy*; and, following the conclusion of the public outreach process: 2. Approve a 7% system-wide average fare increase for all tickets types, except for the Weekend Pass, that would take effect on or after July 1, 2012 to offset an increase in operational expenses. 3. Approve the Title VI Fare Equity Analysis. 4. Waive the 2004 Fare Restructuring Policy cap that limits any station pair to have a maximum increase at 8% for any station pair. *The Title VI Service Delivery Policy will be brought to the Board for approval at a later date. One Gateway Plaza, 12th Floor – Los Angeles, CA 90012 1 Public Hearing on Potential Fare Increase for Fiscal Year 2012-13 (FY13) and Title VI Service Delivery Policy Transmittal Date: May 2429, 2012 Meeting Date: May 30, 2012 Page 2 Alternatives The Board may choose to conclude the public hearing and take no action regarding staff’s recommendation on the fare increase and/or the Title VI Service Delivery Policy. Alternatively, the Board could choose to approve a fare increase of 5%, 6%, 8% or 9%. Background Last year, through the implementation of operational efficiencies and a 9% ridership growth, staff developed a budget that included a 14% increase in train miles, without requesting additional subsidy from member agencies or a fare increase. Despite staff’s continued financial stewardship and efficient management practices, the proposed FY13 budget has a $13.0 million funding shortfall. Some of the costs impacting this year’s budget are as follows: • $4.2 million increase in major contractor costs including but not limited to the rise in Amtrak’s contract to reflect their nationwide labor settlement and associated overhead increases, as well as an increase in administrative costs • $4.0 million increase in fuel costs ($1.9 million from the higher cost and $2.1 million from an increase in train sets, longer train sets and heavier, safety-enhanced Guardian cars) • $2.5 million in Other Post-Employment Benefit (OPEB) costs reflected as part of new transparency and budget policy • $1.3 million in transfer costs for Metrolink riders option to transfer onto other transportation providers’ systems, primarily the MTA System to provide seamless ridership for Metrolink passengers As discussed at the March 9, and April 13, 2012, Board meetings, diesel fuel costs have risen dramatically over the past three years. Average fuel prices per gallon for FY10 were $1.80, FY11 were $2.40, and FY12 are $3.40. The cost of diesel fuel used by Metrolink trains could increase to an average cost of $3.75 per gallon for the proposed FY13 budget.