MTC is set to repay $19M to SamTrans

SamTrans will receive its $19.6 million right-of-way repayment as part of ongoing Caltrain governance reform following a funding commitment from the Metropolitan Transportation Commission Wednesday.

“This $19.6 million repayment to SamTrans from the MTC today for the Caltrain right of way will set the agency up to advance how the rail system is governed regionally in the future,” MTC Commissioner David Canepa said, also a San Mateo County supervisor. “As Caltrain embarks on partnering with MTC in its regional governance discussions, this repayment was a necessity in striving to reach this key milestone.”

The payment is key to progression in Caltrain reform governance talks that have dragged through the past year, with SamTrans requesting repayment for past financial obligations. The Metropolitan Transportation Commission is the regional transportation planning agency for the Bay Area and distributes state and federal dollars to regional transit agencies. Payment obligations from a 2008 Real Property Ownership Agreement stated MTC would pay $43.3 million on behalf of the Santa Clara Valley Transportation Authority and the city and county of San Francisco. MTC has paid around $23.7 million of the $43.3 million, leaving the remaining $19 million.

An MTC staff report said the organization is evaluating potential funding sources for the $19.6 million. MTC will work with SamTrans to identify a source that works for both agencies for use on a project or program of SamTrans’ choice that meets eligibility requirements. Possibilities include federal, state or other grant funding programs. Staff hopes to identify a funding source in 2022 and bring back a recommendation to the commission by June.

The Caltrain Board of Directors has three representatives each from San Mateo, San Francisco and Santa Clara counties. Representatives from San Francisco and Santa Clara counties want to change the Caltrain governance structure to give the two counties more of an oversight role in hiring and firing Caltrain staff and decision-making. SamTrans has final oversight authority because when Caltrain purchased the railroad right of way in 1991, it used state funds and money advanced by SamTrans. The agreement and subsequent amendments designated SamTrans as the managing agency for as long as it decided. SamTrans has generally opposed the broad governance changes but is open to compromise, provided it is repaid its $19.6 million right-of-way payments, which MTC agreed to Wednesday. SamTrans board members have stressed the need for a meaningful financial payment to SamTrans and not have it taken from other sources designed for SamTrans and Caltrain.

“It’s imperative for the whole region that we resolve this in a way that can enable us all to move forward, and I’m just grateful that we are doing so today,” MTC Commissioner Sam Liccardo said, also the San Jose mayor.

As part of the payment, conditions include a policy statement that the agreement does not preclude future recommendations forthcoming from future studies like the Regional Rail Study. The study will explore ways to improve the current and future regional rail system. Another provision stated SamTrans and Caltrain should continue to consult MTC about network management recommendations. Several MTC commissioners expressed hesitation about the ambiguity of the two conditions and wanted more straightforward language. MTC also called it the last MTC payment to SamTrans to purchase the Caltrain right of way.

SamTrans Board Member Charles Stone, also a Belmont councilmember, said he was glad MTC was finally living up to its obligation and SamTrans was getting the money owed. He was unhappy with the idea of any conditions attached to money already owed to SamTrans. However, he was hopeful SamTrans could live with the conditions.

“I’m appreciative of the work of our MTC representatives who helped on this issue,” Stone said.

The commission unanimously voted to accept funding for the right-of-way repayment at its Jan. 26 meeting.

curtis@smdailyjournal.com

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