Sacramento Regional Transit Board of Directors Meeting - July 26, 2021

The Sacramento Regional Transit District Board of Directors met on Monday, July 26, 2021, at 5:32 PM. The meeting was called to order with a quorum of 87 votes present. The board approved a consent calendar (with items pulled for discussion), recognized a prestigious APTA award and approved incentive pay for employees, adopted the general manager's performance evaluation and compensation amendments, authorized bond refinancing, and discussed a draft network integration plan and a strategic action plan for safe parking locations for unhoused individuals.

Consent Calendar

• Items 2.1–2.11: Approved unanimously except for item 2.10, which was pulled for separate consideration. One public comment was received on item 2.6 (delegation of authority to approve plans for public works) from Helen O'Connell, who requested that plans ensure accessibility for wheelchairs, blind, deaf, and those with physical limitations.
• Item 2.10 (Resolution declaring surplus a portion of 3009 Power Inn Road): Brent Berniker explained the surplus land process, including marketing to affordable housing agencies and potential below-market offers. Director Valenzuela asked about the process for development proposals; staff clarified that multiple offers would be vetted and brought back to the board. The item was approved unanimously (8-0).

Public Comments & Testimony

• On Item 7.5 (Safe Parking Locations): Thirteen written public comments were read into the record. Commenters included representatives from the 80 Watt District PBID, Downtown Sacramento Partnership, Diocese of Sacramento, Florin Road Partnership, and individual business owners. Positions were mixed: some expressed strong support for the safe parking sites as a necessary first step to address homelessness, while others opposed the proposed locations—particularly the Roseville Road and Florin Road sites—citing concerns about safety, property values, business impacts, and lack of community engagement. Several requested that adjacent businesses and property owners be included in future discussions.

Discussion Items

• Item 7.1 – APTA Outstanding System Achievement Award & Employee Incentive Pay: Shelley Ballanton presented the award recognizing SACRT as the best transit agency in North America (mid-size category). The board discussed the agency's accomplishments, including a $12.8M surplus, 500% increase in reserves, and high customer satisfaction. A resolution proposed a one-time incentive pay of $750 for full-time and $350 for part-time employees, funded by the FY2021 operating surplus. The board expressed pride and support. The item was approved unanimously (8-0).
• Item 7.2 – General Manager’s Performance Evaluation & Employment Agreement Amendment: Shelley Ballanton reported that the board met in closed session on June 14 to evaluate GM Henry Lee. The board determined he met or exceeded performance goals. A 3% salary increase and an additional $7,000 annual employer contribution to a 401(a) deferred compensation plan were proposed. Directors praised GM Lee’s leadership in turning around the agency. The resolution was approved unanimously (8-0).
• Item 7.3 – Revenue Refunding Bonds & Line of Credit: Brent Berniker and Darren Hodge presented a plan to refinance outstanding 2012 fare box revenue bonds (approx. $44.6 million) to generate ~$11.6 million in present value savings over six years. The board also considered a $20 million line of credit with U.S. Bank. Staff noted that improved financial position and an A2 rating (up from A3) enabled better terms. Two resolutions were required: Resolution A (bonds up to $50M) and Resolution B (credit agreement). Both required a two-thirds vote. Both were approved unanimously (8-0).
• Item 7.4 – Draft Network Integration Plan (Informational): Laura Hamm presented the plan, a condition of a Caltrans grant for new low-floor light rail vehicles. The plan focuses on future Gold Line service, bus service to the Valley Station, and fare integration. It is a technical study and does not propose service changes. Public comment period ends in July; a final version is expected in August/September. No board action was taken.
• Item 7.5 – Strategic Action Plan for Safe Parking Locations (Informational): Chris Flores, Brent Berniker, and Lisa Hines presented an update on potential safe parking sites at three light rail parking lots: Franklin, Roseville Road, and Florin. The City of Sacramento has requested board feedback on using these sites for temporary overnight parking for unhoused individuals with vehicles. Staff outlined benefits (partnership, reducing encampments on right-of-way, connecting people to services) and risks (safety, security, liability, insurance costs, potential negative impact on ridership perception). Board members engaged in extensive discussion. Concerns included the need for community input, indemnification, temporary vs. permanent use, and coordination with federal and state regulators (FTA, Caltrans, CPUC). Several directors expressed general support for moving forward with a pilot and further engagement. Direction was given to staff to continue working with city staff, answer outstanding questions, conduct outreach to business and community stakeholders, and begin consultation with FTA. No formal vote was taken; staff requested board direction.
• General Manager’s Report (Item 8.1): Henry Lee reported on the APTA award, safety precautions amid rising COVID-19 Delta variant, remembrance of departed colleagues (including Darrell Ben Sada), a tour of Siemens’ facility for new light rail vehicles, the successful annexation of Elk Grove transit services (effective July 1), recognition of CFO Brent Berniker as Sacramento Business Journal CFO of the Year, and updates on federal infrastructure funding requests (including $10M from Senator Alex Padilla and $25M from Congresswoman Doris Matsui).
• Reports, Ideas, and Questions from Directors: Director Budge requested the meeting be adjourned in memory of Jim Notley, a longtime advocate for disability and transit mobility who recently passed away.

Key Outcomes

• Consent Calendar (excluding 2.10) approved unanimously (8-0).
• Item 2.10 (Surplus property) approved unanimously (8-0).
• Item 7.1 (APTA award and employee incentive pay) approved unanimously (8-0).
• Item 7.2 (GM performance evaluation and compensation) approved unanimously (8-0).
• Item 7.3 both resolutions approved with two-thirds vote (8-0 each).
• Item 7.5: Staff directed to continue developing the safe parking plan, engage with affected businesses and communities, and begin consultation with FTA and other regulators. The board expects a future vote on specific parameters.
• The board recessed to closed session with no reportable items expected.