CAPITOLCORRIDOR

2007 Performance Report

Contents1 Letter from Executive Management

2 Welcome Aboard: Capitol CorridorOverview

8 Where We’ve Been: FY 2007Performance

13 Where We’re Going: FY 2008 Planning

14 Itinerary: 2008 Legislative Agenda

To the Governor, Legislature, Local Elected Officials, and Taxpayers of California:

We are pleased to give you an update on the plans and progress of the Capitol CorridorJoint Powers Authority (CCJPA) as stewards of the publicly-funded Capitol Corridor trainservice. Since assuming management of the Capitol Corridor nine years ago, the CCJPA hasconsistently improved the quality, frequency, efficiency, and financial performance of theservice. In 2007, the Capitol Corridor continued to set records for ridership (up 14%) andrevenue growth (up 24%), demonstrating the increasing popularity of riding the train.

The completion of several large capital improvement projects last year enabled the CapitolCorridor to achieve a significant service expansion in August 2006. That investment in theservice paid off in 2007 with gains in ridership and revenue. However, State budget limitationsand the reassignment of traditional financial resources for future capital funds will make itdifficult to proceed with the construction projects needed to maintain quality, improvereliability, and expand beyondthe 32-train service plan. Theinfusion of Proposition 1B fundsmeets only immediate capitalneeds; having reached themaximum service capacity withthe funding available, we arefocused on securing a consistentand steady flow of capital fundsto meet our near-term and long-term capital needs.

Public demand for safe and convenient transportation options continues to rise, as evidencedby the passage of State ballot measures such as Proposition 1B. Furthermore, awarenessof global warming and environmental issues is at an all-time high. Traveling by train decreasesthe number of cars on the road, lessens the consumption of gasoline, and reduces emissionsof harmful pollutants and greenhouse gases. By investing in improvements to the CapitolCorridor train service, the State will satisfy voters’ demands for transportation alternatives anddemonstrate its commitment to reducing traffic congestion and its associated environmentalconsequences.

We remain grateful to all the stakeholders who have contributed to our success – the CCJPABoard, our six member agencies, our transportation partners, and our loyal riders – and welook forward to improving the Capitol Corridor service and increasing its value to the publicthat we serve.

1

Dorothy W. DuggerExecutive Director

Eugene K. SkoropowskiManaging Director

Letter FromExecutive Management

Performance NINE YEARS OF CCJPA MANAGEMENT

Ridership

1,450,069

463,000

Revenue

$19.45 million

$6.25 million

Revenueto CostRatio

48%

30%

213% 210%

ServiceLevel

32 daily trains

8 daily trains

FY 2007

(PRE-CCJPA)FY 1998

Nine YearImprovement 60%300%

The Capitol Corridor® is an intercitypassenger rail route that provides aconvenient choice for people travelingalong the congested I-80, I-680 and I-880freeways by operating safe, frequent, reliable,

and environmentally friendlytrain service to 16 stations in8 Northern California counties:Placer, Sacramento, Yolo,Solano, Contra Costa, Alameda,San Francisco, and Santa Clara.Today, it is the third busiestAmtrak-operated route inthe nation.

As manager of the CapitolCorridor service since October1998, the Capitol CorridorJoint Powers Authority (CCJPA)

has built a record of continuous growthand strong financial results. Over the pastnine years, ridership on the Capitol Corridorincreased 213%, revenue increased 210%,and the revenue-to-cost ratio improvedby 60%. In the same period, service levelsincreased from 8 to 32 daily train trips.Meanwhile, State subsidy allocation hasremained flat for six years. These trendsreflect the success of the Capitol Corridortrain system as a viable transportationalternative in the communities it serves.

Our Vision

The CCJPA’s priorities and guiding valuesare described in our Vision Statement.We exist to:• Provide high-quality passenger railand connecting bus service that is safe,frequent, reliable, and affordable

• Develop rail service as the preferredmeans of travel along the San Jose –Oakland/San Francisco – Sacramento –Auburn route

• Deliver cost-effective expansion ofsuperior passenger rail service

• Build on constructive relationships withour partners: riders, local communities,Amtrak, the Union Pacific Railroad(UPRR), and the State of California

Our History

On December 12, 1991, the State of CaliforniaDepartment of Transportation (Caltrans) andthe National Railroad Passenger Corporation(Amtrak) initiated the Capitol Corridorintercity train service with six daily trainsbetween San Jose and Sacramento. In 1996,legislation was enacted to establishthe Capitol Corridor Joint Powers Authority(CCJPA), a partnership among six localtransportation agencies to share in theadministration and management of theCapitol Corridor intercity train service. TheCCJPA is overseen by a Board of Directorscomprised of members from each of the sixagencies along the Capitol Corridor route.

In July 1998, an Interagency TransferAgreement (ITA) transferred the operationof the Capitol Corridor service to the CCJPAfor a three-year term. In July 2001, the ITAwas extended for another three-year termthrough June 2004. In September 2003,legislation was enacted that eliminated thesunset date in the ITA and established thecurrent, permanent governance structurefor the CCJPA.

2

Welcome Aboard:Capitol Corridor Overview

“I love thistrain. It's a

beautiful rideand very clean.

I appreciatethe low cost,and having a

real alternativeto driving.”

3

A Green ChoiceWith gas prices creeping higher, more travelers are taking the train as a lessexpensive alternative to driving. The savings can be significant. According tothe American Automobile Association (AAA), the average cost of driving acar is 44–62 cents per mile, not including tolls and parking. The averagecost of a full-fare Capitol Corridor ticket is about 21 cents per mile traveled,and can be as low as 11 cents per mile with a multi-ride ticket.

In addition to putting more “green” back into your wallet, riding theCapitol Corridor is also an environmentally friendly choice. This year CapitolCorridor trains kept 105 million vehicle miles traveled (VMTs) off the road,greatly reducing traffic congestion, the consumption of gasoline, andemissions of harmful pollutants and greenhouse gases. Each gallon ofgasoline burned produces 19 pounds of carbon dioxide, the primarygreenhouse gas that contributes to global warming. More and more travelersare opting to leave their cars at home to save money, avoid traffic, and dosomething positive for the environment at the same time.

Service Overview

In FY 2007, the Capitol Corridor providedintercity passenger trains between San Joseand Sacramento/Auburn with service to 16stations spanning the 170-mile rail corridor.

The Capitol Corridor route operates ontracks primarily owned and dispatched bythe UPRR and Caltrain. The CCJPA nowmanages the Capitol Corridor service throughan operating agreement with Amtrak. Trainsprovide direct connections to 19 local publictransit systems and five passenger rail or railtransit systems, including BART, VTA, ACE,Caltrain, and Amtrak’s national train network.To supplement the train service, dedicatedfeeder bus and local transit routes servecommunities south of San Jose (Santa Cruz,Monterey, Salinas, San Luis Obispo, SantaBarbara) and east of Sacramento (GrassValley, Truckee, Colfax, Reno, South LakeTahoe). Together, these transit systems servethe second-largest urban area in the WesternUnited States.

Administration & Management

The interregional partnership among the

CCJPA’s six member agencies is the first and

only one of its kind to manage an intercity

train service. The CCJPA Board of Directors

is supported by the CCJPA staff and the

staff of its member agencies, who work

collaboratively to develop the service’s

operating strategies, marketing programs,

and service planning activities. The CCJPA

establishes operating and management

policy on capital and operating funds, fares,

service levels, equipment maintenance,

schedules, marketing, and business planning

for the Capitol Corridor as part of the

State’s intercity rail program.

SAN FRANCISCO BAY AREA RAPID TRANSITDISTRICT (BART) MANAGEMENT CONTRACT

The enabling legislation calls for BART to

provide dedicated staff and administrative

management to the CCJPA (extended

4

AUBURN/CONHEIM

ROCKLIN

ROSEVILLE

SACRAMENTO

DAVIS

SUISUN/FAIRFIELD

MARTINEZ

RICHMOND/BART STATION

EMERYVILLE

OAKLAND/JACK LONDON SQUARE

HAYWARD

FREMONT/CENTERVILLE

SANTA CLARA/GREAT AMERICA

SAN JOSE DIRIDON/CALTRAIN STATION

89M

ILE

S4

5M

ILE

S• Depot building, Quik-Trak machines, limited free parking• Local transit connections

• Depot building, Quik-Trak machines, limited free parking• Local transit connections

• Station staffed by travel agency, Quik-Trak machineslimited parking

• Local transit connections

• Staffed station, Quik-Trak machines, limited paid parking• Motorcoaches to Redding, Reno and South Lake Tahoe• Local transit connections

• Staffed station, Quik-Trak machines, permit parking• Local transit connections

• Depot building, Quik-Trak machine, limited free parking• Local transit connections

• Staffed station, Quik-Trak machine, limited free parking• Motorcoaches to Vallejo, Napa and Santa Rosa• Local transit connections

• Intermodal station,Quik-Trak machines, limited parking• Local transit connections

• Staffed station, Quik-Trak machine, limited free parking• Motorcoach connection to San Francisco• Local transit connections

• Staffed station, Quik-Trak machine, limited paid parking• Local transit connections

• Platform only,Quik-Trak machine, limited free parking• Local transit connections

• Depot building, Quik-Trak machine, limited free parking• Local transit connections

• Platform only,Quik-Trak machines, limited free parking• Local transit connections and employer shuttles

• Staffed station, Quik-Trak machines, limited free parkingfor Capitol Corridor passengers

• Motorcoaches to Santa Cruz, Monterey andSanta Barbara

• Local transit connections

BERKELEY• Boarding area only, Quik-Trak machines• Local transit connections

36M

ILE

S

OAKLAND COLISEUM/BART STATION• Intermodal platform,Quik-Trak machine, limited parking• Local transit connections, access to Oakland InternationalAirport via AirBART shuttle

170

MIL

ES

through February 2010). BART’s management

responsibilities on behalf of the CCJPA include:

overseeing day-to-day train and motorcoach

scheduling and operations; reinvesting operating

efficiencies into service enhancements; overseeing

deployment and maintenance (by Amtrak) of

rolling stock for the Capitol Corridor and San

Joaquin routes; managing subcontracted feeder

bus routes; interfacing with Amtrak and the UPRR

on dispatching and railroad-related issues; and

coordinating with Caltrans, Amtrak, the UPRR, the

California Transportation Commission (CTC), and

local communities to develop and implement a

Capital Improvement Program.

OTHER PARTNERS

The Capitol Corridor service is developed with

input from our riders, private sector stakeholders

(such as Chambers of Commerce), and public

sector stakeholders (such as local transportation

agencies), along with the partners who help

deliver the service – Amtrak, the UPRR, Caltrans,

and the various agencies and communities that

are along the Capitol Corridor.

Finances

Each year the CCJPA receives funding from the

State of California Business, Transportation and

Housing Agency (BT&H) to cover operating costs

and marketing expenses. In turn, the CCJPA pays

Amtrak for the operation of the Capitol Corridor

service. The primary source of funding for capital

improvements is the State Transportation

Improvement Program (STIP), which allocates

funds every two years. Previous allocations from

the State’s Public Transportation Account and

the Traffic Congestion Relief Program provided

additional funding for track and station upgrades

which enabled the August 2006 service expansion

to occur. The CCJPA also receives local

transportation funds directly or via collaborative

track and station projects sponsored by local

communities.

The CCJPA is committed to maximizing cost

efficiencies in its operation of the service. By

continuing its fixed-price operating agreement with

Amtrak, the CCJPA is able to stabilize operating

costs and maximize revenue yield by reinvesting

cost savings and revenues above business plan

projections into service enhancements.

Annual Business Plan

Each year the CCJPA submits to the State a

Business Plan for the following two fiscal years

that specifies annual operating and marketing

strategies; performance standards and goals for

farebox ratio, ridership, and on-time performance;

capital improvement plans; and the funding request

to the State for the CCJPA’s annual operating,

marketing, and administrative costs for inclusion

in the State budget proposal to the Legislature.

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Operating Budget (millions)

FY 06-07 32 $22.0 $20.2 $1.8

FY 07-08 32 $22.4 $21.1a $1.3

FY 06-07 $1.1 $1.1

FY 07-08 $1.1 $1.1

Marketing Budget (millions)

FiscalYear

ServiceLevels

AllocatedBudget

ActualCosts

Reinvested inImprovements

a. Projected.

Long-Term Objectives

To supplement the annual Business Plan,

the CCJPA Board developed a Vision Plan

(updated in April 2005) that includes a list of

long-term financial and service objectives to

guide our plans over the next 5 to 20 years:

• Provide hourly service daily, 5 a.m.–10 p.m.

• Achieve farebox recovery of 50%

• Reduce train cost per passenger mile to 20¢

• Reduce travel time by 12%

• Achieve on-time performance of 90% ormore

• Continuously improve customer satisfaction

Both Caltrans and Amtrak used these

objectives to develop their respective state or

national passenger rail plans that include the

Capitol Corridor.

Operations

TRAIN EQUIPMENT

The CCJPA is responsible for the

administration and maintenance supervision

of the State-owned fleet of rail cars and

locomotives assigned to Northern California.

Train equipment includes: the California

Locomotive – among the most modern,

quiet, and clean operating in the United

States; the California Café Car with space

for 49 passengers and on-board food service;

and the wheelchair accessible California

Coach Car with space for 88 passengers

and restrooms.

The California Car mechanical overhaul

program that began in 2005 has been

completed. Further upgrades will include

new upholstery, carpets, and curtains on the

entire fleet. Planned enhancements include

rebuilding the head-end power (HEP)

units on all locomotives, adding security

cameras, and testing new systems to

improve locomotive performance and meet

the latest emissions standards.With certain

trains now filled to capacity, the CCJPA is

working with Caltrans to procure additional

rail cars and locomotives to accommodate

more passengers. Since this may take a few

years, Caltrans has arranged for two

Superliner Coaches to be leased to help the

Capitol Corridor as a short-term solution,

with several more on the way.

MOTORCOACH EQUIPMENT

Through its contracted private motorcoach

operators, Amtrak provides feeder bus routes

that connect outlying communities to the

Capitol Corridor service. Each air-conditioned

motorcoach is equipped with a wheelchair

lift, restroom, and storage space for baggage

and bicycles.

Local Connections

The unique structure of the CCJPA enablescommunities served by the Capitol Corridorto participate in the development ofprograms to promote the use of the CapitolCorridor trains.

6

Surveys show that more than 20% of Capitol Corridorpassengers arrive at the station via bus, light rail or otherforms of transit. By coordinating transit connections withother services, the Capitol Corridor helps reduce the numberof vehicles contributing to traffic congestion and pollution.

• The Transit Transfer program allowspassengers to transfer free of charge tonearly all local transit lines that servethe stations, including Sacramento RT,Rio Vista Transit, E-Tran (Elk Grove Transit),Yolobus, Unitrans, County Connection,Santa Clara VTA, AC Transit, Fairfield-SuisunTransit, Benicia Breeze, and WestCAT.

• The CCJPA has negotiated reciprocalticketing agreements with Roseville Transitand Placer Commuter Express buses thatparallel the Capitol Corridor route betweenSacramento, Roseville, and Auburn.

• Passengers are entitled to a 20% discounton BART tickets purchased on board theCapitol Corridor trains to facilitate transfersto the Richmond and Oakland ColiseumIntermodal Stations.

• Partnerships with Gold Country Stage,Monterey-Salinas Transit, and Santa CruzMetro offer passengers more transportationchoices throughout Northern California.

Rail Safety

One of the CCJPA’s top priorities is to

promote rail safety awareness to the public

(especially schoolchildren) by partnering

with local agencies and communities to

provide effective education, outreach, and

enforcement. Trespassing and grade crossing

incidents have a severe impact on our service

performance and reliability. With the number

of these incidents on the rise, the CCJPA will

increase its coordination with Operation

Lifesaver, a voluntary effort by railroads, safety

experts, law enforcement officials, and public

agencies to participate in safety education

campaigns for the media and the public.

Ridership

The typical rider on the Capitol Corridor

takes the train as a convenient and enjoyable

alternative to driving. Riders take the train

both for business and leisure travel, with

destinations concentrated in the Sacramento

Valley, Sierra Nevada Foothills, San Francisco/

East Bay area, and San Jose/Silicon Valley

area. Roughly half of all riders use discounted

multi-ride tickets, an attractive option for

regular business travelers and those who

take the train two or three times a week.

Customer Feedback

The CCJPA takes pride in its customer-

focused service delivery. Our standards

are high and we encourage passengers to

provide input on our service performance.

The CCJPA receives customer feedback

through comment cards on the trains,

phone calls, letters, and email. We use this

feedback to identify and prioritize service

modifications, capital improvements, and

desired amenities in the Capitol Corridor

service. In an effort to provide more efficient

customer service to our passengers, the

CCJPA transferred call center functions

from Amtrak to BART in 2006.

7

RIDER PROFILE – REASON FOR USINGTHE CAPITOL CORRIDOR

WORK/BUSINESS60%

LEISURE30%

SCHOOL 6%

TICKET TYPES FY 2007

ONE-WAY/ROUNDTRIP48%

MONTHLY30%

10-RIDE22%

PERSONAL 4%

FY 2007 Service Plan Highlights

The CCJPAmaintained the service plan that

started in August 2006, with 32 weekday

trains between Sacramento and

Oakland/San Francisco; 14 daily

trains to San Jose; and 2 daily trains

east of Sacramento to Roseville,

Rocklin, and Auburn. Despite a

flat budget allocation, the CCJPA

once again raised the bar on

performance. Targeted marketing

and revenue management

programs contributed to another

solid year:

• Overall ridership grew 14%, continuing thetrend of ridership growth every year

• As a result of the August 2006 serviceexpansion to San Jose, average stationactivity between Oakland and San Jose hasincreased 27% over last year

• Many weekday morning and some eveningtrains are regularly filling to capacity,indicating a need for additional train cars toallow for continued ridership growth inthose time slots

• Operating ratio (farebox recovery)improved to 48%, approaching the 50%goal stated in our Vision Plan

• Gains in ridership contributed to recordrevenue, up 24% for the year

While ridership and revenue increasedsubstantially over the past year, the CapitolCorridor experienced a slight improvementin on-time performance. Primary reasons fortrain delays were due to service disruptions

caused by weather, train congestion, andconstruction work. Continued improvementin reliability will be a priority in FY 2008.

Capital Improvement Program (CIP)

The completion of several large capital

improvement projects in FY 2006 enabled

the Capitol Corridor to expand service in

August 2006. FY 2007 was about reaping

the rewards of those investments through

record high ridership and revenue.

However, State budget limitations and the

reassignment of traditional financial

resources for future capital funding will

make it difficult to proceed with the capital

improvement projects needed to expand

beyond the current 32-train service plan.

Only previously programmed projects have

been included in the CIP. The one bright

spot is that passage of Proposition 1B has

made funding available for limited service

improvement projects and several safety

and security projects included in the

CCJPA’s Safety and Security Plan.

STATION UPGRADES

• Quik-Trak ticket vending machines wereinstalled at all Capitol Corridor stations.

• The Richmond Intermodal Station buildingwas completed and incorporates a newtransit center that houses a passengerwaiting area and police substation.

8

Where We’ve Been:FY 2007 Performance

8

“I amcompletely

satisfiedby the

performanceof the Capitol

Corridor.”

75%

9

Ridership NINE YEARS OF CCJPA MANAGEMENT

FFY 97-98(PRE-CCJPA)

463,000

FFY 98-99 FFY 99-00 FFY 00-01 FFY 01-02 FFY02-03 FFY 03-04 FFY 04-05 FFY 05-06 FFY 06-07

544,000

768,000

1,073,000 1,080,000 1,139,100

1,260,249 1,273,632

1,450,0691,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

NINE YEAR IMPROVEMENT +213%

Revenue NINE YEARS OF CCJPA MANAGEMENT

FFY 97-98(PRE-CCJPA)

FFY 98-99 FFY 99-00 FFY 00-01 FFY 01-02 FFY02-03 FFY 03-04 FFY 04-05 FFY 05-06 FFY 06-07

$20M

$17.5M

$15M

$12.5M

$10M

$7.5M

$5M

ANNUAL REVENUE (IN MILLIONS OF DOLLARS)NINE YEAR IMPROVEMENT +210%

6.257.31

9.12

11.6912.20

12.7913.15

15.27 15.67

19.45

On-Time Performance NINE YEARS OF CCJPA MANAGEMENT

FFY 97-98(PRE-CCJPA)

FFY 98-99 FFY 99-00 FFY 00-01 FFY 01-02 FFY02-03 FFY 03-04 FFY 04-05 FFY 05-06 FFY 06-07

100%

95%

90%

85%

80%

75%

70%

80% 79%78%

84%

79%

85%

73%

Farebox Recovery NINE YEARS OF CCJPA MANAGEMENT

FFY 97-98(PRE-CCJPA)

FFY 98-99 FFY 99-00 FFY 00-01 FFY 01-02 FFY02-03 FFY 03-04 FFY 04-05 FFY 05-06 FFY 06-07

50%

40%

30%

20%

10%

30% 31%36%

40% 37% 38% 39%43%

46% 48%

1,165,300

NINE YEAR IMPROVEMENT +60%

A STEADY SOURCE OF CAPITAL FUNDS IS NEEDED TO IMPROVE RELIABILITYAND ON-TIME PERFORMANCE, WHICH WILL ENHANCE AND GROW RIDERSHIP.

90%

86%

Budget(millions) Status

Automated Ticket Validation Program: Introduce handheldcomputer units that automatically perform ticket validationand sales on Capitol Corridor trains. Conductors will be providedwith units on the Capitol Corridor trains as a pilot program inpartnership with Amtrak, Caltrans, and federal law enforcementagencies

Outdoor Ticket Vending Machines: Install ticket vendingmachines at all stations

On Board Security Cameras: Purchase and install Wi-Fienabled security cameras on all locomotives and cab cars in theNorthern California intercity passenger rail fleet

Capitalized Maintenance Program: Joint effort with UPRR toreplace ties, rails, and switches to improve reliability, maintaingood ride quality, and keep tracks in state of good repair

SUBTOTAL–PROJECTS UNDERWAY

$1.20 Design plans complete.Testing of first phasescheduled for Fall 2008

$0.52 Installation completedat all stations

$0.38 Installation to be phasedin during FY 2008

$2.00 Program started in 2007and will continue through2008

$4.10

Sacramento-Roseville Track Improvements: Add track andrelated infrastructure between Sacramento and UPRR’s RosevilleYard, for near-term expansion of Capitol Corridor trains toRoseville and Auburn

Bahia-Benicia Crossover Project: Install a universal crossoverin the Bahia-Benicia area to facilitate switching and increasecapacity

San Jose 4th Track Phase 1: Add 4th main line track betweenSanta Clara and San Jose to accommodate more Caltrain, ACE,and Capitol Corridor trains

Emeryville Phase 2 Station and Track Improvement Program:Complete track improvement project, which will allow forincreased capacity through the congested Emeryville Stationtrack area

Transit Security Improvements: Potential projects forFY 2008 include security cameras, wireless network, andupgrades to electronic real-time station message signs

SUBTOTAL–COMMITTED PROGRAMMING

TOTAL SECURED FUNDING

$7.28 Design plans under review

$7.50 Financed with Bay AreaRegional Measure 2 (RM-2)and State transportationfunds. Design planscomplete; construction tostart in early 2008

$20.00 Design plans 90%complete; construction tostart in 2008-09

$10.00 Programmed in 2010.Attempting to advanceproject since design plansare complete

$1.92 Programmed in FY2008with the enactment ofProp 1B (Transit SecurityAccount) funds as part of amulti-year $19.2M programfor the Capitol Corridor

$46.70

$50.80

Projects Completed/Underway

Budget(millions) StatusCommitted Programming

10

Wireless Networking

Throughout 2007, the CCJPA continued to

evaluate a variety of unique business models

that would ensure the wireless networking

program could provide sufficient bandwidth

to run important operational and

safety/security applications, in addition to

providing passengers with internet access.

During the evaluation process, the Union

Pacific Railroad – the CCJPA’s host railroad –

indicated that their radio spectrum policies

would restrict solutions based upon licensed

radio spectrum. The CCJPA is working

with industry leaders in this emerging field

to negotiate a fully functional system that

meets specifications using a radio solution

with a licensed spectrum holder. The CCJPA

anticipates that details of a joint development

project will emerge during 2008.

Marketing Program

The CCJPA combines grassroots local

marketing efforts and collaborative media

campaigns to build awareness of the Capitol

Corridor as a distinct brand in the Northern

California region. In FY 2007, marketing

efforts were primarily aimed at building

ridership amongst leisure travelers in

selected demographic and niche markets.

The CCJPA continued several ongoing

campaigns and repeated its most successful

promotional events. In addition, the CCJPA

introduced a new Capitol Corridor logo to

update the image of the service and enhance

brand recognition.

ADVERTISING AND JOINT CAMPAIGNS

The CCJPA, along with Amtrak and

Caltrans, continued the “Travel Made Simple”

campaign, emphasizing the convenience

of modern train travel. Radio and online ads

supported the campaign in three major

markets.

PROMOTIONAL EVENTS, PROGRAMS& PARTNERSHIPS

A variety of events and programs promotedawareness and ridership this year:

• Stitch ‘n Ride – This award-winningpromotion encourages ridership amongknitters attending the annual Stitches WestConvention in Santa Clara.

• Rider Appreciation Events – During thesequarterly events, passengers are treated tofood and beverage samples and prizedrawings from promotional partners, andare able to speak directly with CCJPA teammembers about the service.

• Oakland A’s – This ongoing promotionalpartnership includes radio spots and grouptravel discounts targeted at A’s fansheading to the Oakland Coliseum.

• Cal Football – Sacramento-area alumniand fans are encouraged to take the trainto Berkeley games. Stadium signage,videoboard spots, direct mail inserts, andradio spots during game broadcastssupport this promotion.

• Train Treks – This discount program istargeted at school and youth groups usingthe train for midday/mid-week travel.

Revenue Enhancement

Targeted marketing via the Train Treks

program and leisure-activity oriented

promotions on weekends, as well as the

addition of Quik-Trak ticket vending machines

at all Capitol Corridor stations, contributed

to a 24% increase in revenue in FY 2007.

11

12

Way to Grow!The Capitol Corridor has steadily increased service levels andsustained record ridership growth every year since it beganoperating in 1998. In less than a decade, we have quadrupledthe number of weekday trains between Sacramento andSan Jose, and more than tripled the volume of passengers weserve. Today, nearly 1.5 million travelers ride the CapitolCorridor trains each year.

Our growth accelerated with the August 2006 serviceexpansion, which increased train frequency and attractedthousands of new riders. This and previous expansions wereachieved with no additional operating funds from the State;instead, we have continuously improved our efficiency andreinvested cost savings into the service. We have alsocompleted a number of capital improvement projects toincrease capacity and reliability along the route, and areworking actively to ensure a steady flow of capital funding foradditional upgrades so we can continue to thrive and grow.

13

Where We’re Going:FY 2008 Planning

FY 2008 Service Plan Highlights

With limited new capital funds, the CCJPA will

focus on maintaining the 32-train service

plan and improving service performance and

reliability. Programs planned or underway

will allow for the following improvements in

FY 2008:

• Installation of the next phase of securityimprovements including onboard securitycameras on all locomotives and cab cars

• Implementation of on-board AutomatedTicket Validation (ATV) pilot program

• Upgrades to Passenger InformationDisplay Signs (PIDS)

• Initiation of first phases of wireless internetaccess in late 2008

• Installation of Bahia-Benicia crossoverto improve reliability and increase fluidityof passenger and freight trains

CAPITAL IMPROVEMENT PROGRAM

The CCJPA has developed a $3.95 billion

Capital Improvement Program (CIP) that

represents a long-term investment in capital

projects designed to support the ongoing

service improvement of the Capitol Corridor

and other partner agency corridors. The CIP

is primarily State funded with some local

funding support. In FY 2008, the future of

the CIP remains uncertain due to changes at

the State level regarding transportation

funding. Given this situation of limited State

funding, the CCJPA will work to build support

for Federal capital funding for California’s

intercity rail services.

MARKETING PROGRAM

Marketing efforts in FY 2008 will continue tobuild awareness of the Capitol Corridor asa distinct regional service, and drive ridershipto trains with available capacity. Key tacticswill include radio spots, media campaigns,and a strong online presence. Additionaltactics may include:

• Seasonal promotions supported byadvertising

• Public relations campaigns to maximizeawareness of the Capitol Corridor brandand service

• Enhancements to the Capitol Corridorwebsite and customer communications

• Outreach and loyalty programs such asRider Appreciation Events

• Coordination with Amtrak and Caltrans onselected events, promotions, and creativecampaigns

Longer-term marketingplans include thedevelopment of moretargeted promotionsand outreach via acustomer relationshipmanagement (CRM)program. Thedeployment of a CRMsolution will enablethe Capitol Corridor to strengthen itsrelationship with customers by learningabout passengers’ travel preferences,delivering more tailored promotions, andfollowing up on customer service issues.

“Fantastic service—the CapitolCorridor trainis the reasonI can work inSilicon Valley.”

14

The Capitol Corridor actively participates

in seeking legislative solutions to enhance

train service and transportation choices in

Northern California.

FY 2007 Accomplishments

• Feeder Buses – SB 684 (Cox): This billwas enacted in September 2007 andallows the general public to board theSacramento – Placerville – South LakeTahoe intercity rail feeder bus without aconnecting train ticket as long as there isno regular intercity bus service on thatroute provided by a private intercity buscompany. This change is effective January1, 2008 and creates an additional nichemarket for travel to and from the LakeTahoe area.

• Transportation Investment Fund –SB 717 (Perata): This bill extends thelegislative deadline on the Proposition42 (State gas sales tax receipts) transfersto the Transportation Investment Fund(TIF), which expires at the end of the2007-08 fiscal year. In addition, this bill asenacted now reduces funding to the Public

Transportation Account (PTA) by $85million per year. The PTA is currently theonly source of capital and operationalfunding for the CCJPA and the CapitolCorridor services.

FY 2008 Action Plan

• Secure future capital funding sufficient tomeet the CCJPA’s goal for expanded trainservice to San Jose and Roseville/Auburnand enhanced system safety and securityprojects to protect employees, passengers,and facilities

• Campaign for enactment of Federallegislation (such as S.294) that will establisha dedicated federal capital funding programfor intercity passenger rail systems

Itinerary: 2008Legislative Agenda

25 YearPlannedInvestment

Cost(millions)

IncreaseTrainCapacity

ImproveOn-TimePerformance

Serve More/DifferentDestinations

ImprovePassengerAmenities/Value

$300M � � �

$145M � � �

$299M � � �

$3,206M � � �

New/ImprovedStations

Amenities/Safety/SecurityImprovements

Track/SignalImprovements

AdditionalTrainsets

Capital Investment

15

Closing MessageThis annual report is designed to provide an

overview of the Capitol Corridor train service

and an update on our operational and

financial success in fiscal 2007.We are proud

that we have been able to steadily improve

our performance over the years without any

increase in funding. Our customer focus,

creative marketing programs, service

upgrades, and relentless pursuit of efficiency

have made effective use of the financial

resources available to us.

Continued investment will help the Capitol

Corridor expand service, improve reliability,

and sustain ridership growth for the years to

come. It will also pay environmental dividends

in the form of millions of vehicle miles

eliminated from Northern California highways

each year, helping to reduce traffic congestion,

air pollution, and greenhouse gas emissions.

While we are temporarily challenged to find

additional funding for new capital projects,

our overall mission remains unchanged – to

improve the quality of life in the communities

we serve by providing safe, frequent, reliable,

and affordable intercity train service. On behalf

of the CCJPA Board of Directors and our

member agencies and partners, thank you for

your ongoing support of the Capitol Corridor.

System Operating Efficiency (System Operating Ratio)

31% 36% 40% 35% 38% 39% 43% 46% 48% 49%$.35

$.30

$.25

$.20

$.15

NET TRAIN COST PER PASSENGER MILE YIELD (TOTAL REVENUE PER PASSENGER MILE)

While we are temporarilychallenged to find additionalfunding for new capitalprojects, our overall missionremains unchanged – toimprove the quality of lifein the communities we serveby providing safe, frequent,reliable, and affordableintercity train service.

FFY 98-99 FFY 99-00 FFY 00-01 FFY 01-02 FFY02-03 FFY 03-04 FFY 04-05 FFY 05-06 FFY 06-07 FFY 07-08(PROJECTED)

16

Placer County TransportationPlanning AgencyGina GarbolinoJim HolmesSherrie Blackmun (Alternate)

Sacramento RegionalTransit DistrictSteve CohnRoger DickinsonBonnie Pannell (Alternate)

San Francisco Bay AreaRapid Transit DistrictThomas BlalockJames FangBob FranklinJoel KellerGail MurrayLynette SweetZoyd Luce (Alternate)

Santa Clara ValleyTransportation AuthorityForrest Williams, ChairDean Chu

Solano Transportation AuthorityMary Ann Courville, Vice ChairJames P. SperingLen Augustine (Alternate)

Yolo CountyTransportation DistrictChristopher CabaldonSue GreenwaldMike McGowan (Alternate)

Executive OfficersDorothy W. Dugger, Executive DirectorThomas E. Margro, Executive Director (through June 2007)

Eugene K. Skoropowski, Managing DirectorKenneth A. Duron, SecretaryMatthew Burrows, General CounselScott Schroeder, Controller-Treasurer

IN PARTNERSHIP WITH:

Capitol Corridor Joint Powers AuthorityBoard of Directors FY 2007

300 LAKESIDE DRIVE, 14TH FLOOR EAST • OAKLAND, CA 94612PHONE: 877-9-RIDECC (877-974-3322) • FAX: 510-464-6901

WWW.CAPITOLCORRIDOR.ORG

2007 PERFORMANCE REPORT, ADOPTED NOVEMBER 2007 PRINTED ON RECYCLED PAPER