MINUTES OF THE ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SAN JOAQUIN REGIONAL TRANSIT DISTRICT WEDNESDAY, APRIL 17, 2013

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1 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE SAN JOAQUIN REGIONAL TRANSIT DISTRICT WEDNESDAY, APRIL 17, 2013 The Board of Directors of the San Joaquin Regional Transit District (RTD) held an Adjourned Regular Meeting, on Wednesday, April 17, 2013, IN THE BOARDROOM OF RTD S DOWNTOWN TRANSIT CENTER, 421 E. WEBER AVENUE, STOCKTON, CALIFORNIA 1. CALL MEETING TO ORDER Chair Giovanetti called the meeting to order at 3:00 p.m. 2. MOMENT OF SILENCE/REFLECTION 3. PLEDGE OF ALLEGIANCE TO THE FLAG 4. ROLL CALL Present: Les J. Fong Absent: Michael P. Restuccia Duane Isetti Joni Bauer Gary S. Giovanetti Staff Present Donna DeMartino, General Manager/CEO Gloria Salazar, Assistant General Manager/CFO Al Hoslett, Legal Counsel Lorena Herrera, Executive and Board Support Analyst Deffria Bass-Nwoffiah, Administrative Assistant Sharon Miller, Procurement Manager - Contracts Cameron Isaacson, Operations Superintendent Virginia Alcayde, Finance Manager Nathaniel Atherstone, Planning Manager Liz Williams, Coach Operator Members of the Public Who Indicated They Were Present Deborah Gurley Jesse Lopez Cheryl Ross Tu Can Nguyen Alan Wagner Toni Halstead 5. SPECIAL PRESENTATION A. EMPLOYEES OF THE MONTH 6. PUBLIC COMMENT Special recognition was given to Coach Operator Liz Williams, Transportation Employee of the Month for March. Deborah Gurley commented that RTD should provide more security on Metro Express Routes 40 and 43. She also commented on fare evasion and loitering at the Hammer Triangle Station. 1

2 Jesse Lopez commended the Route 60 coach operators for their friendliness and on-time performance. Cheryl Ross, Vice President of the Amalgamated Transit Union, Local 276 (Union), commented on employee health benefits and labor negotiations between RTD and the Union. She expressed that RTD and the Union should work together to resolve issues. Tu Can Nguyen shared her political views and spoke about organized crime. Alan Wagner, President of the Amalgamated Transit Union, Local 276 (Union), commented on absenteeism and employee health benefits. Toni Halstead commented on employee health benefits. 7. REPORTS A. MV REPORT MV Operations Manager Susanna Sanchez provided an update on staffing levels at the County Yard and noted that MV will hold an employee appreciation event. B. GENERAL MANAGER/CEO REPORT The General Manager/CEO provided the following comments: RTD staff participated in RTD s Walk off Stress Event as a part of RTD s wellness initiatives. C. STATE/FEDERAL LEGISLATIVE REPORT The General Manager/CEO: Noted that there are a lot of threats to RTD s funding, but there are also opportunities. The General Manager/CEO and Director Les Fong will attend the San Joaquin One Voice trip, which is a trip that historically has been beneficial for RTD in obtaining funding. Mentioned that ATU and the Teamsters have taken a stand against the Public Employees Pension Reform Act and this continues to threaten funding. Some agencies have begun to conduct public hearings for service reductions. Director Isetti commented that the SJCOG One Voice trip is a productive trip. He noted that looking for funding is always crucial. 8. CONSENT CALENDAR A. RESOLUTION: MINUTES OF THE MARCH 19, 2013 REGULAR BOARD MEETING Resolution No. 5442: Board approval of the March 19, 2013 Regular Board of Directors Meeting minutes 2

3 B. RESOLUTION: MINUTES OF THE APRIL 1, 2013, SPECIAL BOARD MEETING Resolution No. 5443: Board approval of the April 1, 2013, Special Board of Directors Meeting minutes ACTION: MOTION: DIRECTOR ISETTI SECOND: DIRECTOR FONG Roll Call: AYES: Giovanetti, Isetti, Fong NAYES: None ABSTAIN: None ABSENT: Restuccia, Bauer 9. ACTION ITEMS A. RESOLUTION: APPROVE FARE INCREASE FOR COMMUTER ROUTES 120, 121, AND 122 Resolution No. 5444: Board approval of the Fare Increase for Commuter Routes 120, 121, and 122 ACTION: MOTION: DIRECTOR ISETTI SECOND: DIRECTOR FONG Roll Call: AYES: Giovanetti, Fong, Isetti NAYES: None ABSTAIN: None ABSENT: Restuccia, Bauer 10. INFORMATION ITEMS A. QUARTERLY REPORT AWARDED CONTRACTS Procurement Manager Contracts Sharon Miller provided information on awarded contracts for the period January through March In response to Director Isetti s question regarding the possibility of having tenants at the Hammer Triangle Station, General Manager/CEO Donna DeMartino responded that staff is definitely looking into potential vendors and interior customer amenities. B. FINANCIAL STATEMENTS Finance Manager Virginia Alcayde provided the March Financial Reports to the Board. In response to Director Giovanetti s question regarding the percentage of RTD s budget that is dedicated to medical premiums today versus ten years ago, General Manager/CEO Donna DeMartino noted that in 2001 medical benefits represented about 3% of RTD s budget and now they represent close to 10%. 11. QUESTIONS AND COMMENTS FROM DIRECTORS Chair Giovanetti noted that he attended a meeting with City of Stockton staff to discuss creating a group that includes a collection of community leaders, as outlined in the Urban Land Institute Study. 3

4 12. CLOSED SESSION Chair Giovanetti announced that the Board would recess to Closed Session to discuss the following matters: A. LABOR NEGOTIATIONS 1. Conference with Labor Negotiator Agency Negotiator: Donna DeMartino, General Manager/CEO Employee Organization: Amalgamated Transit Union, Local 276 B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR, pursuant to Government Code section : 1. Sale of Property: Parcels known as 1533 East Lindsay Street and 1528 East Fremont Street, Stockton, CA Agency Negotiator: Donna DeMartino, General Manager/CEO Under Negotiation: Purchase price and other related terms C. LITIGATION CONFERENCE WITH LEGAL COUNSEL 1. Existing Litigation, pursuant to Government Code Section , subdivision (a). Three cases: (i) (ii) (iii) San Joaquin Regional Transit District vs. DSS-2731 Myrtle LLC, et al., San Joaquin Superior Court Case No CU-El-STK San Joaquin Regional Transit District vs. Alan Wagner, etc., et al., San Joaquin Superior Court Case No CU-CO-STK San Joaquin Regional Transit District vs. Stokes, et al, San Joaquin Superior Court Case No CU-PA-STK 2. Pending Litigation, pursuant to Government Code Section (d)(2). One Case: (i) A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The Directors returned from Closed Session, and the Meeting was called to order. ROLL CALL Present: Les J. Fong Absent: Joni Bauer Duane Isetti Michael P. Restuccia Gary S. Giovanetti RTD s Legal Counsel announced that the following resolution was adopted in Closed Session: 4

5 RESOLUTION NO DATED: APRIL 17, 2013 RESOLUTION TO APPROVE ABANDONMENT OF EMINENT DOMAIN PROCEEDING COMMENCED FOR THE PURPOSE OF ACQUIRING CERTAIN REAL PROPERTY FOR THE REGIONAL TRANSPORTATION CENTER PROJECT (2731 E. MYRTLE STREET, STOCKTON, CALIFORNIA SAN JOAQUIN COUNTY ASSESSOR S PARCEL NO ) AND DIRECTING THE FILING AND SERVICE OF A NOTICE OF ABANDONMENT WHEREAS, San Joaquin Regional Transit District (RTD) intends to construct and implement a Regional Transportation Center (the Project) for the principal purposes of providing a single, centralized operations and maintenance facility in order to provide for more efficient operations and the lowest cost maintenance solution for bus operations, and otherwise furthering the public health, safety, and welfare, together with constructing related improvements and, in connection therewith, has commenced acquisition of certain real property. The Project is for a public use, which is a function of RTD; and WHEREAS, RTD filed a Notice of Determination of Exemption on June 27, 2008, finding and determining that the Project is not subject to the California Environmental Quality Act (CEQA), based upon the applicable statutory exemptions within Section (b) (10), (11) and (13) of the Public Resources Code. In addition, it was determined that the Project qualifies as a categorical exclusion under the National Environmental Policy Act (NEPA) under the provisions of 23 CFR Part (d)(8); and WHEREAS, on September 16, 2008, the Board of Directors of RTD passed and adopted Resolution 5109, a resolution approving the development of the Project at a location on Myrtle Street in Stockton, California; and WHEREAS, pursuant to Public Utilities Code Section 50162, RTD requested and obtained the consent of the City Council of the City of Stockton to proceed to acquire property by eminent domain for the Project, as evidenced by City of Stockton Resolution No adopted on September 29, 2009; and WHEREAS, on March 16, 2010, in compliance with California Government Code Section , RTD made an offer to the owner of that certain property identified as 2731 E. Myrtle Street, Stockton, California San Joaquin County Assessor s Parcel No (the Property) on the basis of an approved appraisal of fair market value, and said offer was made pursuant to federal requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended; and WHEREAS, on September 21, 2010, the Board of Directors of RTD adopted a Resolution of Necessity (Resolution No. 5276) at a duly noticed hearing pursuant to the provisions of Code of Civil Procedure section for the purpose of acquiring the fee interest in the Property, for use in proceeding with the Project; and WHEREAS, Resolution No. 5276, based upon the findings and determinations set forth therein, authorized commencement of an action in eminent domain to acquire the fee interest in the entirety of the Property; and 5

6 WHEREAS, on November 4, 2010, RTD commenced an action in eminent domain pursuant to Resolution No. 5276, for the purpose of acquiring the Property (San Joaquin Regional Transit District v. DSS-2731 Myrtle LLC, et al., San Joaquin Superior Court Case No CU-EI-STK); and WHEREAS, on or about January 4, 2011, defendants DSS-2731 Myrtle LLC and Sardee Industries, Inc. filed their answer to RTD s complaint in eminent domain, in which they objected to RTD s taking of the Property; and WHEREAS, on April 12, 2011, RTD and defendants DSS-2731 Myrtle LLC and Sardee Industries, Inc. entered into a stipulated agreement of pre-judgment possession, under which the defendants were allowed to remain on the improved portion of the Property and RTD was allowed pre-judgment possession of the unimproved portion of the Property; and WHEREAS, in communications with RTD personnel and agents of RTD, Mr. Steven Sarovich and agents of Mr. Sarovich have repeatedly expressed their wish that RTD would allow the business, Sardee Industries, Inc., to remain at its current location on the Property; and WHEREAS, on April 24, 2012, the Board of Directors of RTD passed and adopted Resolution No. 5383, a resolution approving the partial abandonment of the eminent domain proceeding commenced for the purpose of acquiring certain real property for RTD s Regional Transportation Center Project and directing the filing and service of a Notice of Abandonment; and WHEREAS, on April 27, 2012, RTD filed a Notice of Partial Abandonment in the eminent domain action, as authorized by Resolution No. 5383; and WHEREAS, even after the abandonment of a portion of the taking of the Property, Mr. Sarovich again approached RTD expressing Sardee Industries, Inc. s need to retain a portion of that parcel that was not subject to the abandonment; and WHEREAS, defendants have continued to oppose RTD s taking of the Property; and WHEREAS, all efforts by RTD and its agents to resolve this matter without further litigation, including litigation of defendants right-to-take objections, have been rejected; and WHEREAS, during the time period since the Resolution of Necessity (Resolution No. 5276) was adopted in September, 2010, changes in the short-term and mid-term financial projections for RTD have prompted RTD to reevaluate several of its operations and projects, including the Project; and WHEREAS, as part of the reevaluation process pertaining to the Project, and as part of RTD s response to Mr. Sarovich s expressed wish to avoid relocating his business currently located on the Property, RTD staff has determined that the Project can be re-designed in such a manner as to avoid taking the Property, while still meeting the minimum operational objectives and requirements of the Project. 6

7 NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the Board of Directors of the San Joaquin Regional Transit District, meeting in Closed Session at its Regular Meeting held on April 17, 2013, as follows: 1. The above recitals are true and correct. 2. The public interest and necessity continue to require the Project. 3. The Project continues to be planned or located in the manner that will be most compatible with the greatest public good and the least private injury. 4. Although acquisition of the fee interest in the entirety of the Property described in Exhibit A to Resolution No was necessary for the Project as designed and approved at the time Resolution No was approved and adopted in September, 2010, subsequent events, including a reduction in RTD service caused by economic circumstances, have eliminated the need for the Property. 5. The Notice of Determination of Exemption previously filed by RTD in connection with the Project encompasses the abandonment described herein; therefore, no new or further Notice or other environmental filing is required in order to comply with the requirements of the California Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA). 6. Having determined that the Project may now be satisfactorily completed without the acquisition of the Property, the Board of Directors concludes that it is in the best interests of RTD to abandon the legal proceeding entitled San Joaquin Regional Transit District v. DSS-2731 Myrtle LLC, et al. (San Joaquin Superior Court Case No CU-EI-STK) pursuant to Code of Civil Procedure Section , i.e., to abandon its effort to acquire the Property. 7. Counsel for RTD or said counsel s duly authorized designee, including private counsel as co-counsel, is hereby authorized and directed to file and serve a written notice of the abandonment of the legal proceeding entitled San Joaquin Regional Transit District v. DSS-2731 Myrtle LLC, et al. (San Joaquin Superior Court Case No CU-EI-STK), consistent with this resolution. 8. Counsel for RTD or said counsel s duly authorized designee, including private counsel as co-counsel, is further authorized and directed to take such actions that counsel deems advisable or necessary in connection herewith, including, without limitation, applying for a return of the deposit of the probable compensation allocable to the Property. 9. The General Manager/CEO be, and hereby is, authorized to take further actions as may be necessary or appropriate to carry out the intent and purpose of this resolution. The above resolution was moved, seconded, and adopted as follows: ACTION: Roll Call: AYES: MOTION: DIRECTOR GIOVANETTI SECOND: DIRECTOR FONG Giovanetti, Isetti, Fong 7

8 NAYES: ABSTAIN: ABSENT: None None Bauer, Restuccia RTD s Legal Counsel next announced that the following resolution as adopted by the Board of Directors in Closed Session at its Regular Meeting held on October 16, 2012: RESOLUTION NO DATE: OCTOBER 16, 2012 RESOLUTION TO APPROVE COMMERCIAL PROPERTY PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS AND AUTHORIZE EXECUTION AND DELIVERY OF DEED WHEREAS, the San Joaquin Regional Transit District (RTD) owns certain real property on Miner Avenue and on Lindsay Street, which it has found and declared to be surplus property; and WHEREAS, RTD has given notice of its intent to dispose of said surplus property in accordance with the provisions of California Government Code, sections et seq.; and WHEREAS, no governmental entity expressed an interest in purchasing said property in accordance with California Government Code Section 55222; and WHEREAS, RTD has received from Rabesa Mexican Products Corporation, a Commercial Property Purchase Agreement and Joint Escrow Instructions, dated July 31, 2012, as amended by the terms set forth in the Counter Offer I, as executed by RTD on October 9, 2012, (hereinafter referred to as the Purchase Agreement) for the purchase of the real property in Stockton, California, commonly referred to as 1545 East Miner Avenue (APN ) and 1544 East Lindsay Street (APN ) for a total purchase price of $350,000.00; and WHEREAS, RTD finds that it is in the best interests of RTD to sell said parcels of real property, subject to the terms and conditions set forth in the said Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the Board of Directors of the San Joaquin Regional Transit District, meeting in Closed Session at its Regular Meeting held on October 16, 2012, as follows: 1. That that certain Commercial Property Purchase Agreement and Joint Escrow Instructions, dated July 31, 2012, as amended by the terms set forth in the Counter Offer I, as executed by RTD on October 9, 2012 (hereinafter referred to as the Purchase Agreement), providing for the sale by RTD to Rabesa Mexican Products Corporation, of those certain parcels of real property in Stockton, California, commonly known and referred to as 1545 East Miner Avenue (APN ) and 1544 East Lindsay Street (APN ) for a purchase price of $350, be, and the same hereby is, approved. 8

9 2. That RTD s General Manager/CEO be, and she hereby is, authorized and directed to deliver said Purchase Agreement for and on behalf of RTD. 3. That the Chairman and Secretary of RTD be, and they hereby are, authorized to execute on behalf of RTD a deed transferring title to said parcels of real property to Rabesa Mexican Products Corporation in accordance with the terms of said Purchase Agreement. 4. That RTD s Secretary and General Manager/CEO is hereby authorized and directed to take such other and further actions and to execute such other documents, including appropriate escrow instructions, as may be necessary or appropriate to carry out the intents and purposes of said Purchase Agreement for and on behalf of RTD. The above resolution was moved, seconded, and adopted as follows: ACTION: MOTION: DIRECTOR ISETTI SECOND: DIRECTOR GIOVANETTI Roll Call: AYES: Giovanetti, Isetti, Fong NAYES: None ABSTAIN: None ABSENT: Bauer, Restuccia 14. ADJOURNMENT Chair Giovanetti adjourned the meeting at 4:30 p.m. 9