Corrected refer to page 11 for change

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1 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA BOARD OF DIRECTORS REGULAR MEETING May 9, 2014 ITEM 5b BOARD MEMBERS/ALTERNATES IN ATTENDANCE: Votes SANBAG: LARRY McCALLON (Chair) 1 (2 votes) PAUL EATON 1 James Ramos Alan Wapner 1 OCTA: MICHAEL HENNESSEY (Vice-Chair) 1 2 (2 votes) RCTC: DARYL BUSCH (2 nd Vice-Chair) 1 (2 votes) KAREN SPIEGEL 1 1 Andrew Kotyuk VCTC: -- (1 vote) Corrected refer to page 11 for change METRO: MICHAEL ANTONOVICH 2 1 (4 votes) PAUL KREKORIAN 3 1 ARA NAJARIAN 1 Bob Bartlett Richard Katz 1 Tom Lackey EX-OFFICIO MEMBERS State of California -- SCAG -- STAFF: STUART CHUCK, Assistant Director, Capital and Rehabilitation MICHAEL P. DePALLO, Chief Executive Officer DON O. DEL RIO, General Counsel RODERICK DIAZ, Director, Planning and Development GEOFFREY FORGIONE, Associate General Counsel JEFF LUSTGARTEN, Director, Public Affairs BARBARA MANNING, Chief Auditor DARRELL MAXEY, Senior Director, PTC and C&S Systems ALBERT SCALA, Chief of Operations Support 1 Vice-Chair Hennessey and Directors Spiegel and Wapner arrived during the discussion of Item No Director Antonovich arrived during the discussion of Item No Director Krekorian arrived during the discussion of Item No. 4 and left during the discussion of Item No. 10. One Gateway Plaza, 12 th Floor, Los Angeles, CA

2 Page 2 RICHARD TRIPOLI, Interim Director, Equipment KARI HOLMAN, Board Secretary Meeting minutes are prepared in a format that corresponds with the Board Meeting Agenda, which is incorporated by reference with these minutes. SCRRA Board Agendas are available online at under the Meetings and Agendas link or from the Board Secretary at (213) Call to Order The May 9, 2014 SCRRA Board of Directors Meeting was called to order by Chair McCallon who presided over the meeting at 10:02 a.m. at the Metro Board Room, One Gateway Plaza, 3 rd Floor, Los Angeles, CA Pledge of Allegiance Chair McCallon led the group in the Pledge of Allegiance. 3. Roll Call The Board Secretary called roll to confirm a quorum of the Board was present. 4. Public Comment Jose Rodriguez commented regarding the upcoming Los Angeles County Fair and inquired if the Authority would be able to provide daily services to the event. He noted in the past, only weekend service was provided. He remarked on a recent experience with the Commuter Express bus service and stated that two of the scheduled buses never arrived. He was concerned that this lack of service would be a burden on other passengers who ride Metrolink. The Jacob Hefter Foundation The Hefter family thanked Director Lackey for inviting the family to speak to the Board. Angela Hefter stated that the foundation was started in July 2009 in light of Jacob Hefter s death as one of the victims of the Chatsworth incident. The foundation s focus is to perform community outreach regarding the dangers of texting while driving. The foundation is a 501(3)(c). A short dvd was shown highlighting the various community outreach and speaking events that the foundation has participated in. Following the dvd, Jarod Hefter commended the Board for supporting necessary safety improvements such as Positive Train Control (PTC). He added that in addition to positive actions taken by the Board, safety awareness has also been raised on a community level. The foundation was able to raise $11,000 to purchase a distracted driver simulator which was highlighted in the dvd. The Hefter family again thanked the Board for the opportunity. Chair McCallon thanked the Hefter family for the work they do to raise awareness to improve safety and wished them success for their efforts. 10

3 Page 3 Director Katz also thanked the family for coming and for their efforts to turn a tragic situation into something positive for the community. He asked that when speaking to school aged children to also inform them of the dangers of earphones and ear buds. He added that the Board can make safety improvements mechanically, but appreciated the efforts that the foundation is doing to change the behavior of the people they are speaking to. Chair McCallon thanked Director Lackey for bringing this forward to the Board. Director Lackey stated that he was very impressed with the Hefter family as they focused on turning this tragic incident in their lives into something positive not only for themselves, but to also help the community be more conscientious when it comes to safety. Cynde Soto affiliated with Independent Living Center asked what the outcome was regarding the Passenger Care Attendant (PCA) policy. Jeff Lustgarten, Director, Public Affairs stated that the program was not terminated and Board direction was to suspend hard enforcement of the program. He also noted that staff will attend the June 2014 Legislative and Communications Committee with additional recommendations for this program. Chair McCallon confirmed that this program would be revisited in June Dina Garcia affiliated with the Independent Living Center wanted to thank the Board for listening to her comments in support of the community. She also communicated to the Board that she appreciated the response to a conductor at the Chatsworth station who got her out of harm s way just prior to the arrival of the train. REGULAR CALENDAR 5. Approval of Consent Calendar Director Spiegel requested to pull Item No. 22 for discussion. ACTION: Upon a motion by Director Katz seconded by Director Spiegel the Board approved Consent Calendar Items 15-21, [Consent calendar items are contained on pages 8-12 of these minutes.] There was no opposition and the motion passed unanimously. 22. Request For Proposal No. EP Approval of Evaluation Criteria Locomotive Overhaul Services Director Spiegel expressed concern that the Service Life Extension (SLE) contract was cancelled in June 2013 and felt it was not communicated that the contract was not going to be pursued with another vendor. She requested confirmation that two locomotives had begun the SLE but were not completed and voiced her concern nothing further had happened during this past year. Rick Tripoli, Interim Director, Equipment stated that he was the project manager for the previous SLE contract and noted that there were some financial issues that the vendor was experiencing and staff felt it in the best interest of the Authority to terminate the contract. He reviewed the 11

4 Page 4 state of the equipment and remarked that even with the SLE project it would not have resolved many of the electrical issues that have affected the older locomotives. Director Spiegel expressed her concern that this information was never communicated with the Board. She also inquired as to what funds were available for this new evaluation criteria and if staff was aware of any grants that could assist in this overhaul. Roderick Diaz, Director, Planning and Development noted that there are $11 million available in rehabilitation funds which would cover four locomotives and approximately $5 million for use from the terminated SLE contract. If staff is able to perform an overhaul on 10 locomotives the remainder of the costs would come out of the FY budget. Director Spiegel asked what the average life cycle of a locomotive was. Rick Tripoli stated that the average life cycle is approximately 10 to 12 years, and noted that as the locomotive ages, electrical issues arise resulting in various performance issues. Director Spiegel inquired as to the cost for a complete renovation on one locomotive. Roderick Diaz reviewed the various costs associated for locomotive overhaul based on the type of tier chosen (as noted on slide 7 of the presentation included in the agenda packet). Director Spiegel cautioned staff to ensure that this contract be handled and to inform the Board if any issues arise during the process. Upon a motion by Director Katz and seconded by Director Eaton the Board approved the recommendation. There was no opposition and the motion passed unanimously. ACTION: The Board approved the proposed evaluation criteria, detailed in Attachment 1, specifying weighting of seventy percent (70%) for technical qualifications and thirty (30%) for cost, to retain a qualified firm to provide locomotive overhaul services. The proposed evaluation criteria summarized below and detailed on Attachment 1 are consistent with the format and guidelines in Board-approved Contract Administration and Procurement Policies and Procedures CON-7, Technical and Cost Criteria and Weights. 6. Positive Train Control Program Project Status Update and Contract No. H Change Orders Darrell Maxey, Senior Director, PTC and C&S Systems, delivered a presentation and provided a brief background on this item as detailed in the staff report. He reported that this item was also presented at the April 25, 2014 Safety and Operations Committee meeting. Vice-Chair Hennessey inquired if the new Tier IV locomotives would be incorporated with PTC. Darrell Maxey replied that the new Tier IV locomotives will come equipped with PTC and noted that staff will ensure that the configuration is integrated into the PTC system. Director Bartlett asked about the current status on obtaining spectrum. Darrell Maxey responded that currently the Authority is leasing Spectrum 220 with a company for testing purposes. Staff is also pursuing acquisition of spectrum with the Federal Communications Commission (FCC) and bankruptcy court with a renewed effort to obtain it soon. 12

5 Page 5 A copy of the presentation is available upon request from the Board Secretary. 7. Approval 4 Adoption of Internal Audit Department Charter Chair McCallon provided a brief background on this item as detailed in the staff report and requested approval of the recommendation. Upon a motion by Director Eaton and seconded by Director Katz the Board approved the recommendation. There was no opposition and the motion passed unanimously. ACTION: The Board adopted the Internal Audit Department Charter. 8. Internal Audit Department Update Barbara Manning, Chief Auditor, provided a brief background on this item as detailed in the staff report. Firstly, Jim Godsey, Partner, Macias provided a status update on the Comprehensive Annual Financial Report (CAFR) and Single Audit. He stated that he was optimistic that their firm had received all the information needed and their expectation was to have the final draft of the financial statements provided by May 12, He added that the typical timeline after receiving the financial statements is two weeks to prepare the CAFR and Single Audit and he felt confident that it would be done at that time. Barbara Manning reviewed the draft annual audit plan and noted that approximately half of the audit hours would be used for special and internal audits. Currently, she reported that the audit department was spending their time on external, state and federal audits in addition to member agency required audits. She also noted that the audit department would need to choose what types of audits to perform based on availability of audit staff. She commented on a few audit in progress and that those findings would be presented at an upcoming meeting. Barbara Manning stated that regarding contract audits (Pre and Post Award) staff would need to review requirements on which contract audits need to be completed adding that as the Chief Auditor she could not assume the risk for not performing an audit and would be required to inform the Board when the audit department is unable to perform necessary contract audits and would then seek direction from the Executive Management and Audit Committee. She noted the required communication on resource limitation as noted in Attachment B of the staff report. Director Spiegel expressed her concern to ensure that more responsibility be placed on the Project Manager and the front end of the contract. Barbara Manning agreed and noted that it could also potentially reduce with improved quality assurance. Director Spiegel inquired as to what would be the effects if certain audits were not performed in relation to the receipt of grants. Barbara Manning stated that she would need to speak to the Federal Transit Administration (FTA) to see if audit requirements 4 Correction to Item No. 7 Title: Adoption of Internal Audit Department Charter 13

6 Page 6 could be minimized. She would also meet with the contracts department to discuss options. She noted that there were approximately six contracts that would need to be reviewed on an annual basis to review rates. Director Spiegel also expressed concerned regarding the delay of the CAFR and Single Audit that was being performed by Macias. Barbara Manning agreed that the audit seemed excessive and stated that in her experience, samples are tested but at a certain point a judgment call needs to be made to stop the testing and move forward with reporting on the information that was tested. Director Spiegel asked when the reconciliation would be completed. Barbara Manning stated that it should be completed by the end of May Barbara Manning continued with her report and highlighted the FTA Corrective Action Plan as noted in the staff report on pages 59 through 61 of the agenda packet. She informed the Board that there were concerns regarding the FTA Financial Management Oversight (FMO) review and noted that some items were reported as 100% complete when they were in fact not fully operational and staff was working on meeting the June and July 2014 deadlines. Chair McCallon thanked Michael DePallo and the staff for their diligent work and responses to the FTA Triennial Audit and commented that many of the items in the agenda were in response to the audit findings. 9. Tier IV Locomotive Program Project Update and Funding Status Albert Scala, Chief of Operations Support, delivered a presentation and provided a brief background on this item as detailed in the staff report. He reported that testing was critical and the locomotives would be fully tested both in Los Angeles, California and in Pueblo, Colorado. Chair McCallon remarked that including risk assessment with this project was critical and appreciated the advanced forethought. Director Najarian inquired if the custom design-build for the Authority for the Crash Energy Management (CEM) cars, Tier IV locomotives or Positive Train Control (PTC) allow for other commuter agencies to benefit and result in a potential reduction in price. Albert Scala noted that the frame design was in fact, not a custom design for the Authority but CEM was an approved design. He noted that no price reductions have been provided at this time, adding that the vendor did not win the project to supply Caltrans/Amtrak with cars which may have prohibited any possible price reductions. A copy of the presentation is available upon request from the Board Secretary. 14

7 Page Los Angeles Union Station Projects Update Stuart Chuck, Assistant Director, Capital Construction and Rehab delivered a presentation on major projects that were completed at Los Angeles Union Station during the years 2012 to A copy of the presentation is available upon request from the Board Secretary. At this time, Chair McCallon called on a member of public who submitted a request to speak following the conclusion of the public comment period. Ryan Cowell commented that a few months back while riding the train in Ventura County he felt he was harassed by a security guard and conductor and informed that he was not able to have a Passenger Care Attendant (PCA) ride with him. He requested an explanation as to why that occurred. Chair McCallon stated that staff would talk to him and look into his concern. 11. Chief Executive Officer s Report o Authority Update Michael DePallo reported on the following items: On-Time Performance April 2014 was 95.33% and the top three percentages for delays during April were: 28% train operations, 19% Burlington Northern Santa Fe Railroad (BNSF), and 17% mechanical problems. He reported that current month-to-date as of May 7 the on-time performance was 94.09% with two major service disruptions sustained. Sacramento Trip with Chair McCallon On Tuesday, May 6, 2014 travelled to Sacramento to meet with California legislators. He recounted that they met with elected officials and staff from twelve offices including Speaker-elect Toni Atkins, Assembly Transportation Chair Bonnie Lowenthal and Senate Select Committee on Passenger Rail Chair Hannah-Beth Jackson. The focus of the trip was to introduce Chair McCallon and inform legislators of current priority projects as well as informing them on the role Metrolink plays to aid in the reduction of greenhouse gases and the importance of supporting the Authority s services with cap and trade revenues. He also noted that the distribution of cap and trade revenues was a major issue for the state to address before the budget process deadline in June Wabtec Computer-Aided Dispatch System (CAD) Progress was on schedule and the new CAD system was deployed last Saturday through Monday and most issues were mitigated during testing. He also noted that Wabtec would redeploy the new CAD at the Metrolink Operations Center on the weekend of May 17, 2014 and this installation would be the revenue service version and remain in service moving forward. Los Angeles Union Station 75 th Anniversary event On May 3, 2014, the 75 th anniversary event was held at Los Angeles Union Station. Chair McCallon 15

8 Page 8 represented the Authority at the Opening Ceremonies. Directors Najarian and Krekorian also spoke at the event. Authority presence was at the event with two tables, exhibited a display train including the SMARTY car and handed out materials to many of the estimated 30,000 people in attendance. Metrolink operated five free train rides between LAUS and the Glendale station which carried over 3,000 passenger trips. He thanked the Authority s Operations and Customer Relations staff, City of Glendale for coordinating the free train shuttles and to Metro for underwriting the service. 12. Chair s Comments Chair McCallon stated that his purpose for travelling to Sacramento was to discuss Cap and Trade, and messaged that once the funds are identified and assigned to send it to either the regional organization or to the organization to be used on projects that will aid in the reduction of greenhouse gases. He expressed that the trip went well and was planning on travelling to Washington D.C. the week of May 19 to discuss similar issues. 13. Board Members' Comments There were no additional comments from the Board Members at this time. CLOSED SESSION The Board convened into Closed Session at 11:39 a.m. to discuss Item No. 14 a., and reconvened in Open Session at 12:40 p.m., at which time Counsel indicated there were no reportable actions from Closed Session. 14. Closed Session a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section Title: Chief Executive Officer CONSENT CALENDAR (As referenced in Item 5) 15. Contract No. SP Communications Production Support Services Recommendation for Award Showreel International, Inc. ACTION: The Board authorized the Chief Executive Officer to award Contract No. SP for communications production support services to Showreel International, Inc. (Showreel) in an annual amount of $75,000. The total not-to-exceed amount is $150,000 for the base term of two years. There are two one-year options. This award is subject to resolution of any protest timely filed. 16

9 Page Revision to Fare and Service Delivery Policies and Standards to Address Federal transit Administration Triennial Review Finding ACTION: The Board adopted the proposed consolidated Service Delivery and Fare Change policy document, as detailed in Attachment A of the staff report. 17. Adopt Staff Recommended Positions on Legislation ACTION: The Board adopted the staff recommended positions on legislation: 17A) Senate Bill 1064 California Public Utilities Commission (CPUC): Railroad Safety WORK WITH AUTHOR 17B) Senate Bill 1433 Local Agency Public Construction Act SUPPORT 17C) Recommended Position on Positive Train Control (PTC) Implementation SUPPORT APTA Position 18. State and Federal Legislative Update Customer Satisfaction Survey Summary of Findings 20. Adoption of Materials Management and Warehousing Standard Operating Procedures ACTION: The Board adopted the proposed Material Management and Warehousing Standard Operating Procedures, detailed in Attachment 1 of the staff report. 21. Adoption of Fare Collection Services Transit Access Pass Enabled Ticket Stock Management Policy and Procedures ACTION: The Board adopted the proposed policy and procedures for managing the Authority s TAP enabled ticket stock inventory. 23. Request For Proposal No. SP Approval of Evaluation Criteria Development of Authority Transit Asset Management Plan ACTION: The Board approved the proposed evaluation criteria, detailed in Attachment 1, specifying weighting of eighty percent (80%) for technical qualifications and twenty (20%) for cost, to retain a qualified firm to prepare a Transit Asset Management Plan that complies with federal requirements. The proposed evaluation criteria summarized below and detailed on Attachment 1 of the staff report are consistent with the format and guidelines in Board-approved Contract Administration and Procurement Policies and Procedures CON-7, Technical and Cost Criteria and Weights. 17

10 Page Approval of Evaluation Criteria Request for Proposal No. E On-Call Project Management, Construction Management and Staff Assistance Services ACTION: The Board approved the proposed evaluation criteria, detailed in Attachment 1 of the staff report, specifying a weighting of 100% to prequalify and retain a bench of up to three highest-ranked and qualified firms to provide on-call project management, construction management and staff assistance services. The proposed criteria are consistent with the Board-approved procurement policy and statutory requirements which mandate the sole use of a qualifications-based selection process to award Architectural and Engineering (A&E) professional service contracts. Approval of evaluation criteria has no budget impact. 25. Valley, Ventura and East San Gabriel Communications Backhaul and Orange County Communication Backhaul Projects Status Update 26. Contract No. DB100R-12 Train Control and Operations Facility Increase Contingency Fund, Increase Contract Funding Authorization, Authorize Change Orders above $150,000 USS Cal Builders, Inc. ACTION: The Board authorized the Chief Executive Officer to amend Contract No. DB100R-12 with USS Cal Builders, Inc., increasing the contingency by $538,647 (5% of the original total contract value) to a new contingency amount of $2,154,588 and to execute three change orders above $150,000 each for a total not-to-exceed amount of $483,000. The increase in contingency amount will result in a new total not-to-exceed contract funding authorization of $12,927,528. The TCOSF project is funded with multiple state and local funding sources within the PTC program. 27. Contract No. MS Janitorial Services Exercise Single Two-Year Option and Increase Contract Funding Authorization Executive Suite Services, Inc. ACTION: The Board authorized the Chief Executive Officer to amend Contract No. MS for Janitorial Services with Executive Suite Services, Inc., to exercise the single two-year option which will extend the period of performance from June 1, 2014 to May 31, 2016, and modify contract funding authorization amount by $480,720 for a new total not-to-exceed contract funding authorization amount of $920,720. Funding for the first month of the janitorial services contract option year is included in the FY Operating Budget. Funding for subsequent fiscal years will be included via future budget requests. 28. Review of Southern California Regional Rail Authority Facilities Management Maintenance Plan 18

11 Page Review of Southern California Regional Rail Authority Non-Revenue Fleet Management Plan 30. Review of the Southern California Regional Rail Authority Fleet Management & Maintenance Plan Review of Threat and Vulnerability Assessment 32. Review of Security Emergency Preparedness Plan 33. System Safety Update 34. On-Time Performance 35. Adoption of Grants Administration Policies and Procedures ACTION: The Board adopted the Grants Administration Policies and Procedures, which include the process for closing out grants within 90 days after ECHO drawdown. The Planning and Finance Committee further approved and recommends the Board approve the adoption of the comprehensive grant closeout plan. 36. FY Quarterly Accounts Receivable Status Report Quarter Ended March 31, FY Quarterly Investment Report Quarter Ended March 31, Oracle Financial Information System (FIS) Update 5 Following approval of the minutes at the June 13, 2014 Board meeting, it was noted that the name of this item changed to: Review of the Southern California Regional Rail Authority Rolling Stock (Locomotive and Passenger Car) Management and Maintenance Plan. 19

12 Page Passenger Fare Revenue and Ridership Report Quarter Ended March 31, Finance Department Update 41. Contract No. SP Consulting Services for Management Review and Strengthening of Organizational Capacity at Metrolink Increase Contract Funding Authorization KH Consulting Group ACTION: The Board authorized the Chief Executive Officer to amend Contract No. SP Consulting Services for Management Review and Strengthening of Organizational Capacity at Metrolink with KH Consulting Group, Inc. (KH) to increase the contract funding authorization by $99,975 for a new total not-to-exceed contract funding authorization amount of $189,975 for Phase II of the program. 42. Contract No. QM External Audit Services Increase Contract Funding Authorization Macias Consulting Group, Inc. ACTION: The Board authorized the Chief Executive Officer to amend Contract No. QM External Audit Services with Macias Consulting Group, Inc. (Macias) to increase the contract funding authorization by $91,000 for a new total not-to-exceed contract funding authorization of $292, Internal Audit Department Update 44. Approval of Minutes April 11, 2014 Board of Directors Meeting ACTION: The Board approved the Minutes of the April 11, 2014 Board of Directors Meeting. 45. ADJOURNMENT There being no further business for consideration by the Board, the meeting was adjourned at 12:41 p.m. Respectfully Submitted, Kari Holman Board Secretary 20