SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA BOARD OF DIRECTORS ANNUAL STRATEGIC SESSION AUGUST 26-27, 2011 ITEM 3b

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1 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA BOARD OF DIRECTORS ANNUAL STRATEGIC SESSION AUGUST 26-27, 2011 ITEM 3b BOARD MEMBERS/ALTERNATES IN ATTENDANCE: Friday, August 26, 2011 Votes METRO: 1 RICHARD KATZ (Chair) 1.33 (4 votes) MICHAEL ANTONOVICH 1.33 ARA NAJARIAN 1.33 Jaime de la Vega Robert Bartlett SANBAG: PATRICK MORRIS 1 (2 votes) PAUL EATON 1 Larry McCallon Alan Wapner OCTA: PAUL GLAAB 1 (2 votes) CAROLYN CAVECCHE 1 RCTC: DARYL BUSCH 1 (2 votes) RON ROBERTS 1 Karen Spiegel Greg Pettis VCTC: KEITH MILLHOUSE 1 (1 vote) Brian Humphrey EX-OFFICIO MEMBERS: CALTRANS: -- SCAG: Michele Martinez SCRRA STAFF PRESENT: JOHN FENTON, Chief Executive OfficerGRAY CRARY, Chief Strategic Officer DENNIS MARZEC, Chief Operating Officer ROBERT TURNAUCKAS, Chief Administrative Officer OLGA YERO, Chief of Staff PATRICIA BRUNO, Government and Regulatory Affairs Manager CHERYL TAYLOR, Chief Financial Officer BRUCE HARTWELL, Chief Information Officer MARK NITTI, Director, Customer Engagement MARK WAIER, Market Development Manager 1 Chair Katz arrived during the discussion of Item No. 5 One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

2 Page 2 FRED JACKSON, Manager, System Safety HENNING EICHLER, Manager, Research and Planning SHERITA COFFELT, Media and Public Relations Officer DELANA GBENKAMA, Communications Representative KARI BROZOWSKI, Board Secretary HELEN PARKER, Principal Deputy County Counsel Meeting minutes are prepared in a format that corresponds with the Board of Directors Strategic Session Agenda, which is incorporated by reference with these minutes. SCRRA Board Agendas are available online at under the Board Agenda link or from the Board Secretary at (213) Call to Order The SCRRA Board of Directors Annual Strategic Session was called to order by Vice- Chair Morris on Friday, August 26, 2011 at 8:02 a.m. 2. Pledge of Allegiance Ty Schuiling, Interim CEO, SANBAG led the group in the Pledge of Allegiance. 3. Safety Briefing Mr. Fred Jackson gave a brief overview of important safety information with regard to the conference room and the surroundings, exits, earthquake and evacuation procedures and emergency preparation. 4. Public Comment None. REGULAR CALENDAR 5. Welcome Remarks Mr. John Fenton, Chief Executive Officer, welcomed everyone and provided an overview of the strategic session program. He noted this year s program is a different format from past sessions, and encouraged engagement by the Board and discussion during the sessions. 6. Overview Fiscal Year Mr. John Fenton introduced this session noting that staff would be providing a brief overview of accomplishments that occurred during the Fiscal Year. He noted the agency has been successful in transforming its safety culture and changing the discussion about Metrolink by launching the Guardian fleet, installing inward facing cameras, leading in the PTC effort, and developing the first ever rail safety certification program with USC VIterbi School of Engineering. He emphasized that the agency continues to pursue improvements especially in the areas of customer service, service design, fuel savings, and crew utilization. Mr. Fenton also briefly updated the Board on the Macias Internal Audit and noted the progress made to date in the areas of Project Management, Grants and Inventory. Although he stressed that there is still a lot of

3 Page 3 work ahead, staff is no longer in a crisis situation and the process is in place to develop reports that provide more visibility then in the past. Mr. Gray Crary, Chief Strategic Officer reviewed progress in the areas of strategic planning and grants, providing a system wide perspective and regional collaboration. He noted that an interim Grants Management system has been developed and implemented while a long-term solution is being assessed. He further commented that new policies and procedures have been established with the implementation of a strategic plan being developed along with other organizational assessments to correlate with past audit findings. Mr. Dennis Marzec, Chief Operating Officer reviewed progress in the areas of cost reduction strategies realized during the last fiscal year, as well the increase of on-time performance. He highlighted some of the changes that have improved efficiency in the maintenance process and use of crews. Staff was also able to see savings of $10 million over the FY2011 budget and $15 million in the FY2012 initial budget request by working closely with each of the agency s largest five contractors. Mr. Marzec further added that the on-time performance has been at a steady rate of over 95% for 10 months. Mr. Robert Turnauckas, Chief Administrative Officer highlighted an increased focus in marketing and targeting the corporate pass program, the introduction of the weekend pass as an added value to the customer, and the steps taken to retain current riders. He spoke on the newly launched C.O.A.T. program, and the Metrolinkrewards.com website that have provided added benefits to Metrolink riders. He further highlighted the progress made in the communications department which included the launch of the Metrolink mobile website, increased communication with the use of Twitter and the positive coverage shown by the press. Additionally, in the Procurement department, staff has been able to achieve cost savings over $11 million due to negotiating agreements and has increased the small business and disadvantaged business vendor pool by nearly 500%. The Information Technology department has also made advancement in the Oracle Upgrade, financial reporting, security and internal process improvements. A copy of the PowerPoint Presentation is available upon request from the Board 7. Session A Customer and You Mr. John Fenton spoke on the value provided to the Metrolink passenger. There was a video presentation highlighting Metrolink customers feedback on their experience and the basic expectations of a quality product as it relates to safety, connectivity and schedules, value, ease of use, comfort and convenience, and cleanliness. Following the video viewing, a discussion with all in attendance began to talk about the issues raised by the comments as noted in the video. Discussions occurred regarding connectivity with first and last mile issues; ticketing issues; education; pricing; bike and hybrid car rentals at station locations; and various options for types of service, i.e. bike cars, quiet cars, express service, etc.

4 Page 4 A copy of the PowerPoint Presentation is available upon request from the Board 8. Session B Brand Transformation This presentation by Mr. Richard Kuhn, with the Vaughn Weeden Kuhn firm, was based on his experience as a passenger riding the train for the first time and the challenges he faced in using the system, especially related to signage and using the TVMs. He further spoke about the importance of branding which goes beyond the product/service use and includes everything a customer sees and experiences regarding that product or service, He shared several clips produced by his agency highlighting effective branding transformation of companies in similar situations through the use of communication and public awareness initiatives. There was some discussion regarding options for rebranding Metrolink that included the need to address updating signage, customer education, advertising through various ways such as social media, train wraps, etc. 9. Understanding the Customer This presentation, by Ms. Michele Joseph with Master Connection Associates, focused onthe importance of service excellence. She stressed the importance to change the culture to a cohesive shared vision. The foundation to providing service excellence consists of four things: People Selecting the right talent Training Training and orientation on the service philosophy & culture Tools Provide proper tools and support to do the job effectively Communication Communicate and reinforce expectations everyday Discussions centered around key elements to exceed the customers expectations. Ms. Joseph facilitated a panel of customers to provide direct feedback about Metrolink service levels and to discuss areas of improvements. a panel discussion Thepanel was composed of individual riders, Employee Transportation Coodinators from some of the Metorlink Corporate Pass Partners and a representative from ALTA Resources, Metrolink s call center. There were several suggestions revolving around advocacy of the service and educating the general public about Metrolink and the service it provides, including providing free passes to schools, increasing public awareness and educating elementary school children and young adults on public transit, working with cities and targeting those that may provide a discount/subsidy on Metrolink monthly passes, and providing discounted and promotional fares, such as bring a friend for free to attrack new riders. A copy of the PowerPoint Presentation is available upon request by the Board 10. Breakouts Ms. Michele Joseph and Mr. Cory Schisler, with Master Connections, facilitated two breakout sessions focused on the topics of why is connectivity important? and what is the railroad of the future?

5 Page Wrap-up Participants reported out on the two breakout sessions and responses to questions raised during those sessions. The groups identified many of the same concerns regarding connectivity, ticketing options, service options, education, communications, and signage. Mr. Fenton noted, and the group agreed, that it is important to work as a team with Regional CEOs, the member agencies and their respective Boards in a cohesive unified effort, to promote a regional system with connectivity throughout Southern California and a seamless experience for the passengers. 12. Adjournment There being no further business for consideration by the Board, the Annual Strategic Session Day 1 was adjourned at 5:30 p.m.

6 Page 6 BOARD MEMBERS/ALTERNATES IN ATTENDANCE: Saturday, August 27, 2011 Votes METRO: RICHARD KATZ (Chair) 1 (4 votes) MICHAEL ANTONOVICH 1 ARA NAJARIAN 1 DON KNABE 1 Jaime de la Vega Robert Bartlett SANBAG: PATRICK MORRIS 1 (2 votes) PAUL EATON 1 Larry McCallon Alan Wapner OCTA: PAUL GLAAB 1 (2 votes) CAROLYN CAVECCHE 1 RCTC: DARYL BUSCH 1 (2 votes) RON ROBERTS 1 Karen Spiegel Greg Pettis VCTC: KEITH MILLHOUSE 1 (1 vote) Brian Humphrey EX-OFFICIO MEMBERS: CALTRANS: -- SCAG: Michele Martinez JOHN FENTON, Chief Executive Officer SCRRA STAFF PRESENT: GRAY CRARY, Chief Strategic Officer DENNIS MARZEC, Chief Operating Officer ROBERT TURNAUCKAS, Chief Administrative Officer OLGA YERO, Chief of Staff PATRICIA BRUNO, Government and Regulatory Affairs Manager CHERYL TAYLOR, Chief Financial Officer BRUCE HARTWELL, Chief Information Officer MARK NITTI, Director, Customer Engagement FRED JACKSON, Manager, System Safety HENNING EICHLER, Manager, Research and Planning SHERITA COFFELT, Media and Public Relations Officer DELANA GBENKAMA, Communications Representative KARI BROZOWSKI, Board Secretary HELEN PARKER, Principal Deputy County Counsel

7 Page 7 Meeting minutes are prepared in a format that corresponds with the Board of Directors Strategic Session Agenda, which is incorporated by reference with these minutes. SCRRA Board Agendas are available online at under the Board Agenda link or from the Board Secretary at (213) Call to Order The second day of the SCRRA Board of Directors Annual Strategic Session was called to order on Saturday, August 27, 2011 at 9:00 a.m. Safety Briefing Mr. Fred Jackson gave a brief overview of important safety information with regard to the conference room and the surroundings, exits, earthquake and evacuation procedures and emergency preparation. 2. Public Comment None. 3. Benchmarking Mr. Gray Crary, Chief Strategic Officer spoke on alternate service characteristics moving forward and on the impact that funding has on decisions that are made. Mr. Dennis Marzec, Chief Operating Officer provided several sample schedules and alternative service options through the efficient utilization of crews that will result in a higher level of service without increasing additional member agency subsidy. There was a brief discussion regarding the current allocation formula and the need to revisit and change the current model, as it may drive wrong business decisions. It was agreed that there is a need to reevaluate the formula, and this discussion will take place in the next few weeks. A copy of the PowerPoint Presentation is available upon request by the Board 4. Locomotive and Fleet Plan Update Mr. Dennis Marzec spoke briefly about locomotive fleet plan profile, options and estimated rehabilitation costs and funding. He further noted that a detailed plan would be presented at the upcoming September 23, 2011 Safety and Operations Committee Meeting. A copy of the PowerPoint Presentation is available upon request by the Board 5. Organizational Safety Culture A video from the Metrolink/USC Safety Summit lead by Honorable Robert L. Sumwalt was shown. A discussion ensued about the importance of organizational safety culture and the need to focus that culture to our staff and contracted co-workers. A copy of the PowerPoint Presentation is available upon request by the Board

8 Page 8 6. Closing Remarks Vice-Chair Morris thanked staff for hard work in putting this workshop together, commenting on the uniqueness of this workshop with the interaction and issues discussed. He further remarked on the importance of safety and showing respect for the mighty machines that transport passengers every day. He spoke on the importance of leadership and the need to collaborate which would break the barrier of individual county needs to benefit the regional needs. The culture would need to be changed not just at the board level but would need to be changed at the member agency level as well. He admonished the group stating that on an individual level nothing can be accomplished, but if there was a collaborate effort then the ability to go from good to great would be realized. 7. CEO Report Mr. Fenton provided a recap of the two-day board strategic session which included discussions in various areas as outlined in the table below: MARKETING TICKETS ALLOCATION FORMULA SERVICE DESIGN CUSTOMER SERVICE / COMMUNICATIONS Branding Fare Enforcement Current Model Review Types of Service ADA Compliance Tool Kits On-Board Connectivity Employee Training Lounge/Business Cars TVMs Standard Signage On-Time Communication Zip Cars / Bike Rentals On-line Safety Improvements Education Event Trains Smart Phone Wraps School Trips Education Pricing Express Train & Peak / Off Peak Social Media Mr. Fenton thanked both staff and Chair and Vice-Chair for their support and assistance for a great session.

9 Page 9 8. Board Member Comments Director Antonovich commented on the need to put a task force together to benefit all regions and stated that if there was a voice that could move congress and state legislature to extend rail service to San Diego it would present a great opportunity to be the best rail system, serving passengers in Southern California. Chair Katz thanked Helen Parker and Truc Moore of County Counsel for their support over the years. 9. Adjournment There being no further business for consideration by the Board, the meeting was adjourned at 12:15 p.m. Respectfully Submitted, Kari Brozowski Board Secretary