Sacramento Regional Transit District Board Meeting – December 14, 2016

The Sacramento Regional Transit District (RT) Board of Directors held a regular meeting on December 14, 2016 (the meeting was called to order on December 12, 2016, but cablecast on December 14). The meeting included public comments, consent calendar approvals, a general manager’s report, legislative updates, a resolution commending outgoing Director Roberta McGlashon, a presentation on the juvenile fare evasion ordinance, the comprehensive annual financial report, a discussion on local business preference policy, and a resolution to authorize release of RFPs for security guard services. The board voted on several items, with key outcomes including approval of the financial report, direction to staff on local business policy, and authorization to issue security RFPs.

Consent Calendar

• Items 1–18 were approved as a consent calendar, except items 6 and 11, which were pulled for separate votes. The consent calendar included routine approvals and unanimous actions.
• Item 6: Resolution conditionally awarding a contract for mini high platform modifications to Swire Stick Enterprise Inc. DBA Pro Builders. Passed unanimously on a voice vote (100 votes).
• Item 11: Resolution approving the second amendment to the contract for a pilot mobile fare application with Passport. Passed unanimously on a voice vote (100 votes).

Public Comments & Testimony

• Public addresses on matters not on the agenda:
  • Mike Barnbaum (Ride Downtown 916) announced a community meeting on December 14, 2016, regarding the Sleep Train Arena site redevelopment, and urged RT to consider transit connections. He also noted that Route 11 serves the location but the last bus leaves before the meeting ends.
  • Tim Ortiz thanked the board for their efforts and encouraged continued improvement of public transportation.
  • Arthur Ketterling expressed concern about the failure of Measure B and asked the board to ensure RT does not fail. He noted that he saw few “Yes on B” signs and urged the board to find alternative funding. Vice Chair Moran assured him that no service cuts are imminent due to Measure B’s failure.
  • Jeffrey Tardium inquired about the purpose of a recent eminent domain purchase ($337,000) and suggested the board provide more context. He also raised questions about RT’s advertising policies regarding alcohol and marijuana, and about changes to disability documentation forms.
• Comments on items 6 and 11:
  • Jeffrey Tardium asked about the scope of the mini platform modifications (item 6) and potential issues with the Passport mobile app (item 11). Staff clarified that item 6 is for cutting ramps on the Gold Line, and that mobile app connectivity issues are being addressed.
• Comments on item 23 (local business policy):
  • Kim Stoddard (owner of Stoddard Tile, a local business) urged the board to adopt option 2 (headquartered definition) to prevent multinational corporations from receiving local preference points. She cited G4S as an example of a multinational that received such points.
  • Brigitte Yensch argued that G4S, a Danish-British firm with a history of security failures, should not be considered local. She urged the board to change the definition.
  • Fran Eldridge asked whether the current security contract uses federal funds (staff confirmed yes) and urged the board to adopt a definition similar to Sacramento County’s, which requires a principal place of business.
• Comments on item 24 (security guard RFP):
  • Harry Wong (Physicians for Social Responsibility) urged the board to consider social responsibility in contracting, citing examples of the City of Sacramento stopping business with Wells Fargo and the school district declaring safe havens. He opposed contracting with companies that abuse human rights.
  • Maggie Coulter (representing a coalition) presented a handout with alternative RFP language, recommending disclosure of corporate history, investigations, and legal issues. She argued that the proposed pre-qualification questionnaire was insufficient and that the RFP should include small business preference.
  • Lori Jones concurred and suggested RT could create its own security department to avoid these issues.
  • Paul Lewenberger (Veterans for Peace, Peace Action) noted G4S’s history of overcharging governments and urged the board not to renew its contract.
  • Patricia Doherty thanked staff for community engagement and asked what RT should do if it knows a contractor has been complicit in egregious behavior.

Discussion Items

• General Manager’s Report (Item 19):
  • GM Henry Lee reported on employee-driven initiatives (blanket drive for homeless), thanked Sacramento City Council for providing Golden 1 Center tickets to staff, and described ride-alongs with Director Cerna (Route 68) and Ambassador Barbara Staten (Route 23). He noted that Route 68 lacks bus benches and shelters and committed to improvements within six months. He also provided an update on the Connect Card system: soft launch phase one with 300 volunteers is going well, with full regional rollout expected in March 2017. RT’s annual holiday bus offers free rides through January 2, 2017, with donations benefiting a local charity.
• Legislative Updates:
  • State Lobbyist Mark Watts: Recapped the 2016 election results (Democratic supermajorities in both houses), introduced AB1 and SB1 for transportation funding (similar to prior special session bills but with lower tax rates, targeting $6 billion), and noted that both bills include a state-local partnership program to encourage local sales taxes. He also reported that cap-and-trade auction revenues recovered in November ($360 million), with 40% dedicated to transportation.
  • Federal Lobbyist Jeff Booth: Discussed the uncertainty under the new Trump administration, noting that FY17 funding was extended at FY16 levels until April 28, 2017. He warned that formula transit funds (Section 5307, 5337) may become subject to budget caps, potentially reducing funding. He reviewed the proposed $1 trillion infrastructure plan, which relies on tax credits and private investment, and emphasized that local self-help (like Measure B) is critical to leverage federal financing. He also noted that the Capital Investment Grant program for streetcar projects is uncertain.
• Item 21 – Juvenile Fare Evasion Ordinance:
  • Norm Leong presented a revised ordinance allowing juveniles to complete four hours of community service within 60 days as an alternative to a $35 fine. The board discussed the 60-day timeline and incentives for completion. The first reading was waived unanimously.
• Item 22 – Comprehensive Annual Financial Report (CAFR):
  • Paul Salinas and Scott Nickerson (Crow Horwath) presented the audit results. The district ended FY2016 with an operating decrease in net position of $1.1 million, but after reclassification and use of reserves, the available reserve was $3.2 million (a net increase of $71,000). The audit received an unmodified (clean) opinion with no significant deficiencies or material weaknesses. The board approved the CAFR and related resolutions (including a two-thirds vote for the operating reserve transfer).
• Item 23 – Small and Local Business Program Policy (Information):
  • Tim Spengler and Fernando Barcena presented options for revising the local business definition. The current policy defines “local” as any business located within the six-county Sacramento region. Option 1: no change. Option 2: require headquarters in the region. Option 3: a tiered approach (higher preference for headquartered firms). Staff noted that federal funds restrict geographic preferences, but state-funded contracts allow a 10% preference. The board heard public testimony (see above) and discussed trade-offs. Directors Natoli, Cerna, and Hume expressed interest in option 2, while Directors Harris and Budge emphasized flexibility and cost. The board directed staff to bring back a refined proposal at the January 2017 meeting, with input from Directors Cerna and Hume.
• Item 24 – Security Guard Services RFP (Resolution):
  • Tim Spengler explained that staff recommends separating the contract into two RFPs (about $1 million for mobile assets/security operations center, and $2 million for station guards) to allow smaller local firms to bid. He advised against including social responsibility criteria in the evaluation due to federal and state procurement restrictions. He noted that a pre-qualification questionnaire had been developed but was rejected by some community groups. The board discussed the legal risks and the potential for protests. Director Hume moved to delegate authority to the GM to release the two RFPs, with the questionnaire to be circulated to the board. The motion was seconded by Director Budge. After further debate, a roll call vote was taken.

Key Outcomes

• Consent calendar (items 1–18): Approved, with items 6 and 11 approved separately (unanimous voice votes).
• Item 21 (Juvenile fare evasion): First reading waived unanimously; ordinance to be brought back for final passage.
• Item 22 (CAFR): Received and filed; resolutions approving the use of operating reserve and designating STA funds passed unanimously (including a two-thirds vote for the reserve transfer).
• Item 23 (Local business policy): Staff directed to bring back a revised policy proposal at the January 2017 meeting, incorporating input from Directors Cerna and Hume.
• Item 24 (Security guard RFP): Resolution delegating authority to the GM to release up to two RFPs passed on a roll call vote: 5 yes (Budge, Hume, Miller, Natoli, Moran), 1 no (Cerna), 1 abstain (McGlashan). The motion included a requirement that the pre-qualification questionnaire be circulated to board members before release.
• Item 20 (Commendation for Roberta McGlashon): Resolution adopted unanimously.
• Closed session: No reportable action.