Sacramento Regional Transit District Board Meeting - August 2, 2018

The Sacramento Regional Transit District (SacRT) Board of Directors met on August 2, 2018, with a quorum present. The board took public comments, approved the consent calendar, received the General Manager's report and financial update, approved a station renaming, and approved the Downtown Riverfront Streetcar project's environmental and governance documents. A closed session followed.

Consent Calendar

• The board approved consent calendar items 1-10 by unanimous voice vote. Director Harris moved, Director Budge seconded. Public comments were heard on item 2 and item 7 before the vote. Mike Barnbaum supported item 2, a resolution authorizing agreements with Caltrans for a high-capacity bus corridor study. Jeffrey Tardi Gia expressed concern about item 7, which delegates authority to release an RFP for a microtransit scheduling application, saying it was premature to move to a permanent app while pilot projects were still ongoing. General Manager Mark Lonergan responded that the demonstration app agreement is expiring and a permanent app is needed for future implementations. The motion carried with all votes in favor.

Public Comments & Testimony

• Sarah Michael (community member): Expressed concern about bullying and abuse by RT drivers and conductors, and requested employee identification patches for accountability. She also spoke about her mobility device being mischaracterized as a wheelchair and described an incident where a driver refused her entrance. She urged the board to stop the abuse and start accountability.
• Helen O'Connell: Asked for clarity on the lifetime pass for riders 80 and over, stating her 82-year-old mother was unable to obtain one despite another person receiving one recently. Staff was asked to follow up.
• Madeline Corinne (disabled rider): Described a June 22 incident in which a light rail driver threatened to remove her from the train, and later five police officers allegedly physically assaulted her when she refused to leave. She alleged that 20 years of written complaints have been ignored and that abuse has increased, suggesting collusion among staff. Her three-minute time was enforced.
• Mike Barnbaum (transit advocate): Provided updates on Solano Express service changes effective July 1, including a layover at Sacramento Valley Station and restored service to Pleasant Hill BART. He noted Regional Measure 3 passed in June elections at 55% to 45%, providing additional service hours. He also announced that FlixBus has begun offering service in Sacramento.
• Jeffrey Tardi Gia: Raised concerns about bus stop accessibility at 21st and J Street, urged route optimization for more routes, and lamented that the board does not receive enough detail on staff changes in the General Manager's report. He also mentioned the mobile accessibility committee and upcoming ADA anniversary events.
• Brenda Anderson (outgoing advocate, departing to Charlotte, North Carolina): Gave farewell remarks, offering advice to board members to scrutinize resolutions and consider consequences of options. She praised the board for progress and encouraged continued vigilance.
• Stephen Barassa (ION Sacramento board member, Transportation Committee chair): Spoke on the streetcar item, arguing that UC Davis's new electric bus service makes the streetcar unnecessary. He urged the board to wait for the FTA risk assessment and expressed concern about revenue estimates, citing an HDR study with lower farebox and advertising revenue projections.
• Mike Barnbaum also gave a brief update on item 15, the Capitol Corridor Joint Powers Authority meeting, noting the next meeting location and schedule changes.

Discussion Items

General Manager's Report and Financial Update

• General Manager/CEO Henry Li reported on the Folsom evening light rail service started June 17, with free rides offered for the Hometown Parade and Pro Rodeo.
• Electrify America (EA) will invest in SacRT as part of a $44 million investment to make Sacramento a green city. EA will purchase 12 electric buses for an express route between UC Davis and UC Davis Medical Center in Sacramento, operating at 15-minute headways with stops in West Sacramento and downtown Sacramento. EA will also fund zero-emission shuttles for SmaRT Ride. SacRT is finalizing terms and will purchase six small shuttle buses for microtransit, though delivery was delayed at a Chinese port due to the trade war. The agency is also pursuing 10 additional zero-emission buses for an airport express route, with hopes for up to 40 zero-emission buses.
• Technology updates: installation of mobile routers for live video streaming and GPS location, enabling real-time train location and arrival information; completion of PA systems at all light rail stations, which helped reduce crime by 26.7% in FY18 compared to FY17.
• The customer service center will be painted for the Wide Open Walls festival.

Financial update (year-end preliminary, soft close):

• Operating surplus of approximately $5.4 million for FY18, combined with prior year surplus of $5.3 million totals $10.7 million.
• Revenues were ~$164.5 million; expenses ~$159.4 million.
• Additional federal apportionment revenue of $1.5-$2.5 million is expected.
• Fares revenue was $1 million under budget due to shift to electronic media (deferred revenue balance rose to $672,000).
• State and local sales tax receipts were $2.2 million over budget.
• Services spending was $2 million under budget; salary/fringe costs were $1 million favorable.
• Insurance liability was ~$2 million over budget due to two large settlements.
• Farebox recovery met TDA requirement of 23%, with a 4.5% Measure A supplement (up from 2.1% last year).
• Ridership: June was 3% above target; annual ridership was ~21.8 million, within 1% of forecast, but down 6.8% from FY17. Off-peak ridership continued to decline; staff will present ridership strategies in the next two board meetings.

Renaming of Glenn Light Rail Station

• Director Moran presented a resolution to rename the Glenn Light Rail Station to the Glenn Robert Holderness Light Rail Station, honoring former Folsom city councilmember and mayor Robert "Bob" Holderness, who was instrumental in bringing light rail to Folsom. Folsom Chamber of Commerce CEO Joe Gagliardi spoke in support. Directors praised Holderness's service and character. The board voted unanimously to approve the renaming.

Downtown Riverfront Streetcar Project

• Mark Lonergan presented two resolutions: (A) adopting a mitigated negative declaration for the project, and (B) approving three governance documents: the sub-recipient and interagency agreement, the design/procurement/construction agreement, and the operations and maintenance agreement.
• The FTA conducted a risk assessment in late June, identifying 11 risks under four concerns: governance, utilities coordination, vehicle maintenance facility site, and market conditions. Staff will provide updated information by mid-August; the final report is delayed.
• Directors raised concerns about RT's financial exposure, especially if the local sales tax measure is invalidated. Legal staff confirmed that RT could be required to cash-flow operations in a worst-case scenario, with an annual operating cost of about $5.9 million. The O&M agreement states RT has no financial responsibility; however, as FTA grant recipient, RT must ensure service levels. The first five years were identified as the highest-risk period.
• Director Hume opposed the governance structure, arguing RT needs greater oversight and protection, and said he could not support the governance documents. Other directors, including Director Natoli and Director Budge, pressed for more RT representation on the JPA. General Manager Li explained that utility franchise rights would cost the project more than $12 million if RT were a JPA partner, but he intends to pursue more representation after the Small Starts grant is signed.
• Director Harris moved both resolutions, emphasizing the project's proximity to a Small Starts grant award and the need for governance to be in place. Director Shanir supported the project as part of the downtown renaissance.
• Votes: Resolution A (mitigated negative declaration) passed with 9 in favor and 1 abstention. Resolution B (governance documents) passed on a roll call vote with 8 in favor, 1 opposed (Director Hume), and 1 abstention (Director Slowey). Chair Kennedy was absent.

Key Outcomes

• Consent calendar (items 1-10) approved unanimously.
• Board approved renaming Glenn Light Rail Station to Glenn Robert Holderness Light Rail Station.
• Board approved the mitigated negative declaration for the Downtown Riverfront Streetcar Project.
• Board approved the governance documents for the streetcar project.
• Financial report accepted; board will receive ridership improvement strategies at the next two meetings.
• Closed session on General Manager/CEO performance evaluation scheduled after the meeting, with no report out.