San Mateo County transit officials seek $15M in exchange for easing control over commuter train

While the deal could put what’s been a costly saga to rest, it could also spell yet another chapter as the counties have attempted to find common ground on which to build long-term governance structure.

“I think this represents an incredibly fair and reasonable proposal, though, I’m not sure S.F. and [Santa Clara] will see it that way,” said SamTrans Board Member Charles Stone, also a Belmont councilmember. “It gets them what they seem to want and compensates SamTrans in a fair way.”

The nature of the dispute dates back to 1991 when the three counties agreed to pool their money to purchase the rail system, previously privately owned. San Francisco and Santa Clara counties’ portion of the deal was to be a combined $43 million.

But the sum went unpaid until 2008, when a deal was brokered by the MTC in which SamTrans agreed to receive a lesser payment. With interest, the sum had ballooned to $91 million. The deal reduced the debt to $53 million, to be paid largely by the MTC, and in exchange SamTrans was made the managing agency of the rail system.

Fast-forward to today and all but $19.6 million of the MTC’s debt and $200,000 of San Francisco’s debt has been paid. And though last week’s agreement would settle the tab, SamTrans would retain its management position, an arrangement that’s caused friction over the years as the other two counties have sought equal control.

Caltrain is governed by a nine-member board, three seats for each county. Caltrain staff, however, including its executive director, are SamTrans employees, meaning San Mateo County is in charge of hiring — or firing, the top role.

SamTrans’ proposal offers to hand authority to the three-county Caltrain board to hire, fire, conduct goal setting and performance reviews and set compensation for the position, which oversees functions specific to the rail division. In exchange, San Francisco and Santa Clara counties would pay SamTrans the $15.2 million — a figure Stone said was reached through hours of closed-door meetings. SamTrans would still remain the managing agency, controlling positions not directly related to the rail division.

Stone said the deal would allow Caltrain “to get back to the much more important business of electrification and figuring out how to get people back on public transit post-pandemic.” But he admitted the other agencies would likely push back on the price tag, which would need to be paid in full within 18 months.

The disagreement has “incurred hundreds of thousands in costs,” according to SamTrans, spending that comes as Caltrain is still upwards of $400 million short in its ongoing effort to convert its trains from diesel to electric power.

Caltrain, in 2020, narrowly avoided massive service cuts as ridership plummeted amid the pandemic. The train service was saved by Measure RR, a sales tax passed by voters that year that, for the first time, established a steady funding source outside of rider fares.

The Caltrain board will review SamTrans’ “pathway forward” proposal during its meeting 9 a.m. Thursday, Feb. 3. SamTrans prior to that will discuss the proposal during its own meeting, 2 p.m. Wednesday, Feb. 2. Both meetings will be held via Zoom and can be joined by following links provided within the meeting agendas listed on the respective agencies websites.

corey@smdailyjournal.com

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