Rodrigo Alonso

The meeting's primary focus was the public hearing on the proposed 2026 maximum rates of fare, calculated based on the annual change in the Consumer Price Index (CPI), which showed a significant increase compared to 2025 rates. Discussion clarified that adopting the new rates is optional for permit holders. Committee members and public commenters expressed concern that the CPI-based rates might price the taxi industry out of the market, particularly concerning airport trips, leading to a request to explore alternatives to the CPI index for rate setting, possibly through an ad hoc committee meeting. Procedural matters included noting that the approval of previous minutes was held due to a lack of quorum, and reviewing the different rate adjustment processes for vehicles equipped with traditional hard meters versus soft meters.

The meeting commenced with roll call and the Chair noting a quorum with 10 members present and five absent. Key discussion points included non-agenda public comments addressing issues such as poor communication, bus service incidents involving passenger boarding and safety, and concerns about trolley odor impacting the perception of cleanliness. A representative from Grand Central West followed up on communication regarding opportunities for investment at the McDonald's trolley station, stressing the potential impact of an RFP process. Another public commenter discussed the importance of improving the rider experience, especially in light of a potential fare hike, and emphasized the need for creative economic models beyond standard service cuts. The board then moved to approve the consent agenda (Items 3 through 14). An informational report was presented by the executive director of the California Transit Association regarding the California State Transportation Agency Transit Transformation Task Force report. The presentation detailed industry concerns about the report's focus, particularly its lack of recommendations for new state funding and specificity in performance metrics, which were established in the 1970s. The association issued a response letter to the legislature detailing these deficiencies.

The executive committee meeting included two segments of non-agenda public comment. The first commenter raised concerns regarding security, drug activity, and crime along a 16-block stretch associated with MTS trolley routes, criticizing current security measures and suggesting a change in leadership. The second commenter suggested implementing a business class car service for public transportation during rush hours, featuring premium amenities and potentially charging higher fares. The primary discussion item focused on the San Diego Transit Corporation Pension Investment Status, where investment managers presented performance details, noting a 10.2% return for Fiscal Year 2025, which exceeded the 6% actuarial rate, and discussed reducing the overall risk profile due to the plan being closed since 2011. Subsequent discussions covered the San Diego Transit Corporation Employee Retirement Plans Actuarial Valuation for FY27 contributions. This involved reviewing the 2025 valuation results, noting the funded ratio at 58.6%, and proposing changes to the amortization policy for the Unfunded Actuarial Liability (UAL). The valuation showed a $35,000 contribution increase due to asset smoothing (a deferred loss from 2022 countering recent gains) and a $628,000 increase due to liability experience, primarily driven by higher than expected salary increases for members.

The Executive Committee agenda for the March 12, 2026 meeting included several key action and informational items. Discussion topics centered on forwarding a recommendation to amend the Fiscal Year (FY) 2026 Operating Budget midyear, primarily due to lower than expected passenger revenue and higher-than-budgeted revenues from interest and real estate, alongside changes in subsidy revenue forecasts (TDA and TransNet increases, STA and SB 125 decreases). Expenses showed projected decreases in personnel costs but increases in repair/maintenance services and risk management costs. The committee also planned to discuss forwarding a recommendation regarding the Fiscal Year (FY) 2027 Operating Budget and Capital Improvement Program (CIP). Furthermore, the committee addressed the Senate Bill (SB) 125 Allocation Package Revision and received an informational update on the Fare Change Study. The Orange Line Improvement Project Update was also presented for informational purposes.

The Executive Committee agenda focused on financial matters, including the approval of the Fiscal Year (FY) 2026 Operating Budget Midyear Amendment, which would be forwarded as a recommendation to the MTS Board of Directors. The agenda also included informational items regarding the FY 2027 Operating Budget and the FY 2027 Capital Improvement Program (CIP). The CIP action included approving the program and recommending submittal of Federal Section applications and an amendment to the 2027 Regional Transportation Improvement Program (RTIP) to the SANDAG Board of Directors. Another key discussion point was the approval of the revised Senate Bill (SB) 125 Allocation Package and an update on the Fare Change Study. The committee planned to review the draft MTS Board Agenda for March 19, 2026.