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I know a bit about premium priced consulting services that I learned over 30 years including some engagements with government agencies. When the Daily Journal headline screamed “High pay for Caltrain consultant”, I thought “How high?” Luckily the subhead read “Transit agency pays $1.4M for deputy leader, amount over three times top-paid executive director’s salary”. Wow. Is that for a one person, one year extension, not a contract with a firm staffing three or four or more consultants? That’s premium with a capital P. But it gets worse. That front page piece on July 6th came out the same day the purported million-dollar consultant, Sherry Bullock, was scheduled to present the state of the B’way grade separation to our city council.

Thanks to a tipster, I got the word that the presentation didn’t go so well. The video is not streaming smoothly for me, but around 1:05 on this link you can start to feel the confusion and maybe a bit of desperation from the 20-year Caltrain veteran! When asked to spell out some of the arcane acronyms (and there are many) lower-priced staff had to jump in with an assist. The $1.4 mil was looming large given the newspaper was probably still in the box outside city hall. The piece is a little convoluted, but according to a later LTTE from Jeff Gee (Caltrain board and RWC councilmember) “That was a max authority to a consulting firm. Caltrain paid a quarter of that and is closing out the contract.” So perhaps we are down to $350K–that still some “max authority” for someone who is also charging overtime.

And yet we know, because Caltrain told us, that it is on the brink of disaster. Per the DJ

After adopting a $270 million operating budget, Caltrain is reiterating short- and long-term plans to narrow its deficit with a state loan and upcoming sales tax ballot measure — or else it could shut down entirely, leaders say.

Cue the DJ two days later discussing the formation of some opposition to the “Connect Bay Area” 14-year duration sales tax increase.

The measure would be the sixth transportation-dedicated sales tax in San Mateo County. Measures A, W, RR and the San Mateo County Transit District tax are administered by the county, with a portion of the state-mandated 7.25% sales tax going to local transportation efforts as well. They’re thinking, ‘well we’re getting bailed out by the government,’” said Peninsula resident Gregg Dieguez, a member of the Committee for Affordable Bay Area Transit. “They are used to spending our money, rather than reforming what they’re doing.”

This ain’t rocket science, kids. The primary Caltrain commuter rail line spans 77.2 miles between San Francisco and Gilroy. The core corridor between San Francisco and San Jose Diridon Station is approximately 48 miles long. We not running Amtrack or the TGV here. And this is going to be a very tough election for new taxes, bond measures, and whatever else got thrown against the wall by anyone other than the Howard Jarvis people. Couple that with the fact that the B’way grade separation (remember that?) is still not close to being fully funded. The question is “are we getting what we are paying for?”

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4 responses to “Of Caltrain, consultants and transit taxes”

  1. Joe

    From the DJ comes a bit of warning from Ray Mueller:

    San Mateo County Supervisor Ray Mueller said another transit-dedicated tax cuts into city and county revenue opportunities.

    “Whenever there is one agency that is taxing in excess, it takes away the voter goodwill,” Mueller said.

    Even though the transit measure is technically exempt from the legal threshold, repeatedly asking voters for more money affects public trust and their decisions for future initiatives, he said.

    “There is some level of tax support they get but they can’t keep increasing that level of tax support such that they hurt the rest of the economy and the rest of the businesses,” Mueller said. “Some of the money from this measure will go to agencies with surpluses and also agencies that don’t even serve [some taxpayers].”

  2. Mueller is spot on. About 2/3rds of the San Mateo County Transit Tax proceeds will go to bail out entities like Muni and BART and the MTC. Here’s a presentation given today on the issue:
    https://www.shift-ba.org/_files/ugd/e33bf1_e949fed6fad54f86bbc0046f0c2b573b.pdf

    Note that we have many other priorities for funding in SMC: flooding, wildfire, schools, mental health, oh, and replacing PG&E with a reliable grid. Transit is sucking away money without our ability to rationally prioritize it against other needs. Reform first. Fund later. Transit has enough money to get by for a couple of years, as documented here:
    https://shiftbayarea.substack.com/p/newsom-proved-them-wrong

  3. Joe

    Here come the attorneys. Ballot language pro or con is a highly evolved art in California. This election is no different. From the DJ:

    Transit leaders and tax critics are ratcheting up their pleas to either support or oppose a regional sales tax measure that would shore up massive deficits from transit agencies, such as Caltrain and BART.

    Recently, opponents of the measure filed a lawsuit over what they consider misleading ballot language.

    The complaint alleges that the ballot phrasing shows prejudice in favor of the measure. Phrasing such as “preserving BART” and that the measure would be “for everyone, including workers, students, seniors, persons with disabilities” is not neutral, it argues.

    The measure also states that the funding would “prevent major service cuts to BART and other transit,” which the complaint alleges is flagrantly biased.
    —————————
    Chances are this won’t be resolved by the time early voting starts so perhaps it is just laying the groundwork for a post-election move.

  4. It has to be resolved by Aug 28th, so the ballots can be printed.

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