MBTA
BOARD MEETING OF APRIL 4, 2012
At the call of the Chair, a meeting of the Board of Directors of the Massachusetts Bay Transportation Authority was held at Ten Park Plaza, Conference Rooms 1, 2 and 3, 2nd Floor, Boston, Massachusetts, on Wednesday, April 4, 2012 at 1:00 p.m.
There were present: Messrs. Jenkins, Alvaro and Whittle, the Misses Levin and Loux, being all members of the Board.
Also in attendance were: the Secretary, Mr. Davey, the Acting General Manager, Mr. Davis, and Messrs. Kelley and Kane, Special Counsel and Miss Rollins, General Counsel to MassDOT and MBTA and Miss Fallon, Recording Secretary to the Board.
The Chairman, Mr. Jenkins, presided.
Chairman Jenkins called the 1058th Open Meeting to order.
Chairman Jenkins opened the meeting with a moment of silence for William A. Mitchell who recently passed. Mr. Mitchell worked as General Counsel to the MBTA and recently retired in March. Director Loux said a few words on Mr. Mitchell’s love for the job and his loyalty to the people he served. Noting that not only did we lose a loyal worker but also a good friend.
Chairman Jenkins opened up public comment.
The first speaker was Paul Regan from the Advisory Board. Mr. Regan wanted to briefly comment on the fare proposals; he submitted his comments in writing.
There were a total of 26 speakers that all had comments about their concerns with the fare increase and service cuts. Some speakers gave their ideas on how to fix the problem and others voiced their concerns if fares were to increase or if their services were cut. A full list of speakers is attached to the minutes.
Chairman Jenkins closed public comment period at 2:30pm.
The next item on the agenda is the approval of the February 1, 2012 Executive Session minutes and the March 14, 2012 open session minutes.
On motion, duly made and seconded, it was
VOTED: Approval of the minutes for the February 1, 2012 executive session meeting and the March 14, 2012 open session meeting.
Next the General Manager gave his report on safety, customer service, fiscal responsibility, innovation, employees and the public hearing process. (Attached) Director Loux wanted to thank Mr. Davis for his hard work especially attending all of the Fare Increase meetings.
The next item on the agenda presented by Charles Planck for approval of the final management recommendations on service and fare changes. Mr. Planck requested the board to approve Scenario three which is needed to fill the gap in the budget for fiscal year 2013. Mr. Planck discussed the public process the MBTA went through in gaining information to make the hard decisions. Mr. Planck noted that with scenario three there are less cuts in service with a 23% increase in fares.
Director Alvaro stated that he is proud of the work that Management and the board has done during this difficult process. He also noted that it was unfair to say that we don’t care when we do. He noted the countless hours that had been put into this process by the Board and management. He also thought it is unfair to blame the Governor because he knows that the Governor really cares about this issue. In closing Director Alvaro stated that he can’t support the budget if the burden is on the people’s back.
Director Loux stated “I will vote in favor of this with a heavy heart. The working people of the city and the suburbs strive for a middle class life. No inner city bus cuts will go a long way towards helping people get to work. Low wage workers struggle and already live pay check to pay check and will suffer unless the Legislature acts. During the hearings our friends and partners in the legislature told us to go first and do whatever we could do to come up with savings. I believe the MBTA as an organization has done that. I am proud of the work the staff has done and I am proud of the way General Manager Jon Davis has led this public process on behalf of the MBTA. The safety of the citizens of the Commonwealth must be paramount in the Legislatures mind given the crumbling infrastructure of our transit system. Now, we ask our partners in the Legislature to keep their promise and fix the mistake of forward funding once and for all so that we may have a thriving transit system that supports a growing middle class in Boston, the suburbs and throughout the state of Massachusetts and protect the most vulnerable citizens in Massachusetts.”
Director Levin stated that we are privileged to have the best transportation system and our job is to be a steward of this system. She wanted to know the ridership impact per week day the riders today and the riders we will have in the future, is the impact shared by mode. Mr. Planck stated that the impact is shared by all modes. The typical weekday is about 1.3 million. Director Levin was disappointed that we couldn’t get cost savings with Commuter Rail because we will be paying $337 million for 9.5% of our customers. She urges them to find savings and apply the savings where appropriate to go maybe to the student and the elderly. Mr. Davis noted that they do continue to have an open discussion with the Commuter Rail provider. As for the bus cuts and for the weekend service if there is alternatives for the people who would take those services. Mr. Planck stated that in most cases there is alternative form of transportation for the services that were cut but there were a few cases where there was no other alternative. Director Levin also asked the status of the Youth Pass. Mr. Davis responded that for this proposal that we don’t have a youth pass but there is a student pass and they are also incorporating a seven day student pass. This pass is different than a student pass that the students are requesting. Director Levin asked that they continue to explore the Youth Pass. The final question that the Director had was about utilizing summer service in the Ferry service. Mr. Davis stated that they do continue to work on ferry service options and they will report back to the Board. Mr. Davis noted that all the detail on the ridership is available on the CTPS website that breaks down all the information of each mode.
Director Whittle stated that the system is underfunded. He is impressed on how hard the MBTA has worked on the process. He stated that he is upset with the MBCR contract and the process. He stated that they are aware that this is a onetime fix and that there is a need for a more permanent fix. He is relieved that most of the service cuts have been eliminated although he is still not happy with the process. He also calls on the Legislature to take action. He noted that it is a hard decision and they really do care about the process and the people that are affected by the decision. Secretary Davey stated that this is a one year fix and noted that we will back here next year having the same discussion if there is no solution. We will make sure that the Administration and the Legislature to come up with a long term solution. Chairman Jenkins added that this is not just an MBTA problem but a MassDOT problem. He also asks the Administration and the Legislation to come up with a long term solution. He stated that the Governor is committed to a long term solution and working with the Legislature. Director Levin stated that she would like to see the MBTA and the T Advocacy Groups and localities to work with us to build ridership. We have to get people to take public transportation. She would like to see us improve our service planning by getting out working with the communities. She would like us to look at the intermodalism by getting people to places where they can take public transportation and taking a look at parking as a way to get more people on the system. WE should look at off peak on peak pricing. We should also look at working on fare invasion. We should be investing in more service particular bus service where there is demand. We should be looking for ways to make people of low income can ride our system in subsidized fares. Director Alvaro also stated that we need a long term solution not just for the MBTA but also for the entire transportation system that has been needed for decades not just this past year. Director Loux added that the people who take the early bus, who live in the low income communities and the people who take many modes of transportation. Some are striving for the middle class and many of the bus riders are making minimum wage. There has to be an application of social justice and she is committed to making sure that happens.
On motion, duly made and seconded, with one opposed by Director Alvaro;
VOTED:
WHEREAS, the MBT A Board of Directors authorized the Acting General Manager to conduct a public process to solicit public input on proposed fare restructuring and increases and service reductions; and
WHEREAS, such public meetings and hearings were duly noticed and held and letters and emails were received for the purposes of soliciting input on the impacts (including, but not limited to, ridership, revenue, environmental, and socioeconomic) of the proposed fare and service changes; and
WHEREAS, the proposed fare restructuring and increases and service reductions were reviewed by the MBTA Advisory Board; and
WHEREAS, the fare policy was revised in accordance with M.G.L. chapter 161A, section 5(r); and
WHEREAS, an Environmental Notification Form was filed pursuant to M.G.L. chapter 30, sections 61 and 62H and the Certificate of the Secretary of Energy and Environmental Affairs on the Environmental Notification Form was issued; and
WHEREAS, the Board of Directors has given consideration to such public inputs received from the public process, revised fare policy, and the Certificate of the Secretary of Energy and Environmental Affairs on the Environmental Notification Form pursuant to M.G.L. chapter 161 A, section 5(d); and
NOW, THEREFORE, it is voted that the Board of Directors adopts the revised fare policy and the environmental findings attached hereto, that the Acting General Manager be, and hereby is, authorized to implement the fare changes to provide needed revenue and service reductions as also attached hereto.
The next item on the agenda presented by Mary Runkel, Director of Budget. The item is the approval of the Authority’s budget of current operating expenses and debt service costs for a one year period – July 1, 2012 through June 30, 2013 for a budget total of $1,766,263,405. Director Levin asked if there is an estimated actual and is there something that the Board should be aware of before they vote. Mr. Davis stated that there wasn’t and we are trending slightly below and a projection will be brought at the next Finance and Audit meeting. Director Levin asked about the ridership assumptions projection. She would like to know what we are carrying per day. Ms. Runkel said the assumptions come from the CTPS report so they increased the FY13 by the assumptions from the report. Director Levin asked if they added any extra for the following year. Ms. Runkel stated that she did not add extra. Director Levin said that this is a good opportunity to try and challenge ourselves with ridership and we should add to what CTPS projected. Mr. Davis stated that you will see it in our senior staff objectives that we are going to work on gaining ridership. Director Levin noted that there is too much money in it for Commuter Rail. Mr. Davis stated that as discussed previously we are in discussions with the provider to work on cost savings. Secretary Davey asked to also think about motion by looking at vehicle miles travel and avoided and to see it done by each mode. Director Levin stated we should make a major effort to get more people on Commuter Rail. Chairman Jenkins asked for a list of assumptions and what the challenges are for the budget. Mr. Davis stated that we also monitor where the risk and the opportunities are in the budget. Director Loux added that this has been a tumultuous time and Jonathan Davis assumed the role and he keeps a strong hand in the budget and finances and he was a real leader through the public process and a strong leader when we needed it. She thanked Mr. Davis for his work.
On motion, duly made and seconded, with one opposed by Director Alvaro;
VOTED:
That the Board of Directors approve the Authority’s budget of current operating expenses and debt service costs for a one year period-July 1, 2012 through June 30, 2013- in the amount of $1,766,263,405 in the form submitted to this Meeting; and that the General Manager is hereby authorized and directed to submit the budget, in the name and on behalf of the Authority, to the MBTA Advisory Board no later than April 15, 2012 in accordance with Section 20 of Chapter 161A of the Massachusetts General Laws.
The next item on the agenda was presented by Ed Hunter. It is the authorization to enter into a contract with McCourt Construction Company for the Dudley Station Improvements Phase II in a sum not to exceed $3,586,902.00. Director Levin asked about the heated shelters. Mr. Hunter answered that they were updating existing heated shelters. Director Levin wanted to make sure that we weren’t making new shelter heated because she doesn’t think we could afford it. Director Alvaro asked about the funding and where the money was coming from and covering. Mr. Davis stated that after the ARRA funds the federal funds would take over. Chairman Jenkins asked if the community was aware of this project. Mr. Hunter stated that the community was involved.
On motion, duly made and seconded, it was unanimously
VOTED: That the Acting General Manager and Rail & Transit Administrator, be and hereby is, authorized to approve in the name and on behalf of the Authority, subject to the approval of the Massachusetts Department of Transportation (MassDOT) and in a form approved by the General Counsel, a contract with McCourt Construction Company for MBTA Contract No. D13CN01 entitled “Dudley Station Improvement Project, Boston, MA,” for a sum not to exceed $3,586,902.00 based upon a schedule of unit, lump sum and allowance bid prices, said contractor being the lowest responsible and eligible bidder in response to requests for sealed proposals.