Sacramento Regional Transit Board Meeting - April 11, 2017

The Sacramento Regional Transit (RT) Board met on April 11, 2017 (the transcript notes the meeting was called for April 10, but the official date is per the instruction). The meeting began without a quorum due to spring break absences, but a quorum was later achieved. The board approved the consent calendar, heard public comments, received reports on SB1 passage, bond rating improvement, ridership successes, a transit-friendly drinking map, and the preliminary FY2018 budget.

Consent Calendar

• Items 1–9 were approved as a block. Board member Natoli requested discussion on Item 5 (1225 R Street Interior Remodel contract). He noted that the single bid from RBH Construction Inc. was approximately 40% over the estimate ($145,000 vs. $82,000), attributing the difference to market conditions. After staff confirmed the market was driving prices up, the board moved and seconded the consent calendar. The motion carried (8 aye, 0 no, with abstentions not recorded).

Public Comments & Testimony

• Mike Barnbaum provided an update on the Elk Grove Comprehensive Operational Analysis (COA) for e-Tran. The COA will be presented to the Elk Grove City Council on Wednesday, April 12, at 6 p.m. It forecasts fare structure changes in January 2018 and July 2020, and includes a base scenario, a 7.6% service reduction, and a 10% service reduction. He urged board members to attend.
• Jeffrey Tardigia raised multiple concerns: inadequate signage for e-Tran reverse direction pickups, insufficient attention to bus ridership during arena events, a coding issue with the Connect Card quad-core processor, lack of disclosure of bus shuttle costs for I-80 and Roseville incidents, and the need for line-item detail in the budget. He also asked about ticket distribution for upcoming events.
• Adam Wong, a Sacramento City College student, presented his "Transit-Friendly Drinking Map" showing alcohol-serving locations near light rail stations. The map had surpassed 4,000 views. He expressed support for RT and noted that the map promotes transit use and prevents drunk driving. Board members praised his work.

Discussion Items

• General Manager's Report (Henry Li):
  • Announced the passage of SB1, which will provide approximately $5.2 billion statewide for roads and transit (85% roads, 15% transit). RT expects about $10 million annually, to be used for contingency reserves, reducing a $29 million line of credit, replacing lost federal CMAC funding for the Blue Line extension, and offsetting lower cap-and-trade revenues.
  • Reported an upward change in RT's revenue bond rating from a lactive to a stable outlook by Moody's, achieved after seven months of data preparation.
  • Noted progress on the strategic vision and route optimization, with community surveys and 20–30 scheduled presentations. Mentioned new labor agreements that reduce pension contributions from 26% to 3% for new employees and a transition from contracted security (G4S) to internal transit agents, saving $200,000.
  • Announced that the FY2018 proposed operating budget is 1% less than the prior year without changing service or fares, due to efficiencies. A tentative agreement with Paratransit Inc. will save $3.5 million annually while maintaining service.
• Financial Report (Brent Burlinger): Provided February 2017 financials: revenues $13.3 million, expenses $13.2 million, surplus of $100,000. Fare revenues exceeded budget by $160,000 due to a one-time SAC State payment. Sales tax growth (4.5%) offset an STA loss of $770,000. Federal revenues are expected to decrease by $500,000 annually. Ridership remains a concern, and Moody's recommended building a 60-day cash reserve (currently 23 days). The board discussed reserve policies.
• Media Presentation (Deborah): Played a news clip highlighting RT's free rides during the NCAA tournament and St. Patrick's Day, noting that 20% of arena attendees used light rail and many were new riders.
• New Business – Item 11: Preliminary FY2018 Budget Release (David Goldman): Presented the operating budget of $160.9 million (down from $162.5 million) and capital additions of $195 million (mostly for the downtown riverfront streetcar, funded by federal and state grants). The budget maintains service levels and fare structure. A 60-day public review begins, with a public hearing on May 8 and adoption on June 12. Board member Natoli clarified that the streetcar project is not RT money, but may fund RT staff. Public commenter Jeffrey Tardigia requested more line-item detail. The board approved the resolution (motion carried 8-0).
• Item 12: San Joaquin Joint Powers Authority Meeting Report (Director Natoli): Summarized the March 24 meeting, which included a lengthy discussion on single-source contracting for advertising. He noted that Director Hume frequently attends.

Key Outcomes

• Approved the consent calendar (including the 1225 R Street contract) with discussion on item 5.
• Approved the release of the preliminary FY2018 operating and capital budgets for public review (Item 11), with a public hearing set for May 8, 2017.
• Heard the general manager's report and financial updates; no formal votes were taken on those items.
• Received reports from advisory committees and public testimony; no immediate board action required.