BOARD OF DIRECTORS

REGULAR MEETING

MONTEREY‑SALINAS TRANSIT

April 9, 2007

1. CALL TO ORDER

Chairman Armenta called the meeting to order at 10:00 a.m. in the Monterey-Salinas Transit Conference Room.

Present: Michael Cunningham City of Carmel‑By‑The‑Sea

Kristin Clark City of Del Rey Oaks

Gary Wilmot City of Marina

Libby Downey (10:01) City of Monterey

Vicki Stilwell City of Pacific Grove

Robert Russell City of Salinas

Thomas Mancini City of Seaside

Fernando Armenta County of Monterey

Absent: Lisa Senkir City of Gonzales (Ex-Officio)

Staff: Carl Sedoryk General Manager/CEO

Lyn Owens Director of Human Resources

Hunter Harvath Director of Administration

Michael Hernandez Chief Operating Officer

Robert Weber Dir. Transportation Services

Mark Eccles Dir. Information Technology

Sonia Bannister Office Administrator

Mary Archer Planner

William Morris Contract Transportation Manager

Dave Sobotka Controller

Tonja Posey Human Resource Supervisor

Carl Wulf Facilities/Capital Projects Manager

Tom Hicks CTSA Manager

Drew Salzborn Marketing/Planning Intern

Others: Dave Laredo DeLay & Laredo

Tom Greer Coach Operator

Jim Fink Salinas resident

Richard Hans MV Transportation

Lance Atencio MV Transportation

Apology is made for any misspelling of a name.

2-2. – 2-10. CONSENT AGENDA

The consent agenda items consisted of the following:

2-2. Adopt Resolution 2007-17 recognizing Rafael Rosado, Coach Operator, as Employee of the Month for April 2007.

2-3. Disposal of property left aboard buses.

2-4. Minutes of the regular meeting of March 19, 2007.

2-5. Financial Report – March 2007.

2-6. Refer draft FY 2008 budget to Finance Committee.

2-7. Approve pollution legal liability insurance: Self-Insured retention agreement.

2-8. Approve contract amendment for Monterey Bay Bus Rapid Transit study contract with Wilbur Smith Associates.

2-9. 2006 stakeholder survey.

2-10. Approve Resolution 2007-18 authorization for the execution of a Master Agreement and Program Supplements for state funded transit projects.

2-11. Approve Resolution 2007-19 supporting the maintenance of public transit funding in the 2007-2008 California State budget.

Mr. Harvath, Director of Administration, introduced Tom Hicks, as the new Consolidated Transportation Services Agency Manager. Mr. Hicks will be working with the social services community to better coordinate transportation services with MST’s internal RIDES program.

Regarding the stakeholder survey, it was noted that the response was poor. It was suggested to call 20 individuals and get feedback of the service instead of doing a mass mailing.

Item 2-7 was pulled for further discussion.

Director Wilmot moved to approve the remaining items on the consent agenda. Director Mancini seconded and the motion carried unanimously.

2-7. POLLUTION LEGAL LIABILITY INSURANCE

For the past 227 months, FORA, its land use jurisdictions, and other property owners such as MST have been covered by Pollution Legal Liability Insurance for damages and injuries related to unexploded ordnances as well as other hazardous materials remaining on the former Fort Ord. To date, no claims have been filed. As the property of the former Fort Ord continues to be redeveloped, FORA legal counsel has advised the Named Insureds that there may be circumstances in which the SIR of the Pollution Legal Liability insurance policy must be allocated among the Named Insureds. Such a circumstance would affect multiple Named Insureds, requiring cooperation in paying for the $1 million [for Munitions and Explosives of Concern (“MEC”) claims] or $500,000 (for non-MEC claims) SIR before accessing insurance benefits.

Mr. Laredo said the modified language is in favor of MST’s interests. However, the question needs to be asked of FORA that if there is a failure to reach a 2/3 majority vote, what happens?

Director Mancini moved to approve the pollution legal liability insurance: Self-Insured Retention agreement for MST’s properties on the former Fort Ord with additional language to provide clarity on what happens when a 2/3 majority vote cannot be reached. Director Downey seconded and the motion carried unanimously.

3. SPECIAL PRESENTATIONS

Robert Weber, Director of Transportation Services, introduced Tom Greer, Coach Operator, for celebrating 20 years of service with MST. He has received a Safe Driving award for 18 continuous years. Mr. Greer has also served as Line Instructor.

4. PUBLIC COMMENTS

Jim Fink, Salinas resident, commented that MST bicycle service continues to be superb. He wants to see service to San Luis Obispo, and to reinstate service to the Spirit West Coast at Laguna Seca in August. He invited the Board and staff to attend a prayer breakfast at Embassy Suites Hotel on April 17.

5-1. – 5-3. COMMITTEE MINUTES

The Board accepted and filed the MST Finance Committee Minutes – March 19, 2007; the Marketing Committee Minutes – March 30, 2007; and the MST Board Strategic Planning workshop minutes – March 22, 2007.

6-1. MINI-BUS PURCHASE

Mr. Hernandez, Chief Operating Officer, said that this purchase will replace the aging fleet. MST’s contractor, MV Inc, operates 15 mini-buses for DART and other fixed route services. The initial purchase will replace five (5) of the highest mileage 2002 vehicles, ranging in mileage from 200,000 to over 243,000 miles. FTA guideline for replacing medium sized, light-duty transit vehicles is 5 years or 150,000 miles. The remaining three 2002 vehicles will be replaced after funding is available in fiscal 2008. Three additional new vehicles will be used for expansion service on the Peninsula and South County.

Director Cunningham moved to: 1) Authorize the purchase of five (5) Aero Tech mini-buses from Creative Bus Sales in the amount of $377,025; 2) examine engine type (hybrid vs. gasoline/diesel) on the next 6 mini-buses prior to purchase in 2008, as well as other competing needs to the capital budget; 3) authorize the option to purchase up to six (6) additional vehicles in FY 2008; and 4) authorize disposal of the retired vehicles. Director Downey seconded and the motion carried unanimously.

7-1. PROGRAM OF PROJECTS

The Program of Projects (POP) allocates Section 5307 federal funds to specific projects each fiscal year. The POP becomes part of MST’s application for federal grant funding that is submitted to the Federal Transit Administration via AMBAG. According to federal regulations, MST is required to develop, publish and afford an opportunity for a public hearing on and submit for approval a POP that are funded by Section 5307 funds.

In addition, the projects listed in the POP will be submitted to AMBAG for inclusion in the Metropolitan Transportation Improvement Program (MTIP). AMBAG will be amending the MTIP in May to ensure compliance with the provisions of SAFETEA-LU, the current federal transportation authorization legislation, before the July 1, 2007 deadline.

Chairman Armenta opened the public hearing at 10:52 a.m. to receive public comment on the FY 2007 Program of Projects.

Jim Fink, Salinas resident, noted that the MST RIDES budget did not show any increases in future years. He is concerned that the public may have to pick up the difference. Mr. Harvath, Director of Administration commented that the MST RIDES budget is supplemented from other funding sources.

Seeing no one else wishing to comment, the public hearing was closed at 10:53 a.m.

Director Downey moved to: 1) adopt the amended FY 2007 Program of Projects; and 2) authorize the filing of the appropriate grant applications with the Federal Transit Administration. Director Wilmot seconded and the motion carried unanimously.

8. UNFINISHED BUSINESS

None.

9-1. MST STRATEGIC PLAN

Mr. Sedoryk, General Manager/CEO, reported that on March 22, 2007 a Board Strategic Planning Workshop was held. Staff has summarized six strategic goals as follows: 1) Improve service design and infrastructure; 2) Develop stable, long-term funding sources; 3) Enhance information technology; 4) Improve Service Quality; 5) Leverage Alternative Fuels; and 6) Improve Board Structure and Process.

Discussion was held regarding #5 Leveraging alternative fuels. It was suggested to merge this item with Strategic Goal #4 Improving service quality.

Mr. Sedoryk, recommended changing the language to goal #5 to reflect environmentally-friendly yet economically-sound practices with regard to resource management.

Regarding the fuel policy, Mr. Sedoryk reported that staff plans to revisit this matter to see what technology is available prior to the next major bus purchase.

Director Wilmot commented that with regard to Goal #1 service changes should attract new riders – not just marketing techniques.

Director Cunningham requested a change to Goal #2 to show long-term revenue sources as not coming from Sacramento or Washington DC.

Jim Fink, Salinas resident, would like to see service re-established to Toro Park and Serra Village, and add new service to Las Palmas. These are upscale areas that have too many single-passenger vehicle trips. He suggested merging Strategic Goal #1 Improving service design and Infrastructure with #4 Improving service quality.

Director Downey moved to accept the FY 2008-20010 Strategic Goals: 1) Improve service design and infrastructure; 2) Develop stable, long-term funding sources; 3) Enhance information technology; and 4) Improve service quality. Director Mancini seconded and the motion carried unanimously.

10-1. – 10-5. REPORTS & INFORMATION ITEMS

The reports consisted of the General Manager/CEO Report; TAMC Highlights – March 28, 2007; Washington D. C. Lobbyist Report – March 23, 2007; Sacramento Lobbyist report – April 1, 2007; and staff trip reports.

11. COMMENTS BY BOARD MEMBERS

Director Downey gave a brief report on the CTA Lobby Day in Sacramento. She talked about the various proposed changes to the Governor’s budget with regards to transportation.

12. ANNOUNCEMENTS

None.

13. CLOSED SESSION

The Board adjourned to Closed Session to meet with legal counsel regarding the performance of unrepresented employee (GM/CEO).

Upon returning to Open Session, Chairman Armenta announced that no action was taken.

14. ADJOURNMENT

There being no further business, Chairman Armenta adjourned the meeting at 12:00 p.m.