Darren M. Kettle

The Board discussed a critical temporary service reduction due to mechanical issues and parts shortages, along with an update on the FY27 budget development. Additional topics included the approval of revisions to the Contracts and Procurement Policy, the awarding of a contract for the FY24 Valley Track Project, and the approval of multi-year agreements for an as-needed rideshare voucher program. Reports were provided on System Safety, Security, and Compliance activities, ridership and financial results, and a legislative update. Furthermore, the Board reviewed and approved updates to the Internal Audit Charter and Internal Audit Policy.

The Board adopted the Investment Policy 2026 and designated the Chief Financial Officer as Treasurer. A mid-year budget amendment for fiscal year 2026 was approved to address maintenance needs, rolling stock challenges, and rising costs. Additional contract authority was granted for the rebuild of Bombardier rail cars to ensure program continuity. The Board authorized a contract award for the replacement of the cab camera and locomotive digital video recorder system to comply with federal regulations. Legislative updates included taking an oppose position on SB 667 regarding mandatory wayside detector systems and receiving status reports on the Service Growth Development Plan and ridership demographics. Various consent items were approved, including contracts for business enterprise compliance, communication and signal installation services, and bridge replacement project contingency increases, alongside several finance and fuel purchase policy updates.

The meeting included approval of consent calendar items (11A through 11K). Key discussions in the regular calendar involved awarding a bench contract for IT Staff Augmentation Services (Contract No. SP614-25) not to exceed $7,386,120. The Board also authorized a sole source purchase order (MTL2606717) to Progress Rail Locomotive Inc. for a C175-20 Locomotive Engine, not to exceed $1,100,000, necessitated by overhaul schedules for the F125 locomotives. A legislative update covered the state budget deficit, the Transit Transformation Taskforce final report, and appropriations bills. The Board reviewed the FY26 monthly report for November 2025 covering ridership, revenue, and financial results, along with quarterly updates for Grants, Internal Audit activities, and compensation. Further consent actions included approving the purchase of Signal Maintainer and Mechanic Trucks, awarding the Fire Alarm and Switchgear Replacement Project contract, and awarding contracts for oils, coolants, and lubricants. A workshop section focused on legislative initiatives from state and federal advocates, an operations briefing detailing challenges like vandalism, parts shortages, and F-125 overhaul needs, and a financial update regarding FY27 budget development, including potential service reductions due to anticipated OCTA funding changes. An update was also provided for the 2026 FIFA World Cup and 2028 Olympic and Paralympic Games planning.

The Regular Board Meeting covered several key actions and discussions. The Board approved the execution of a Construction and Maintenance Agreement with DesertXpress Enterprises, LLC, d/b/a Brightline West, authorizing the CEO to negotiate and execute the agreement for construction support services funded by DesertXpress. A Memorandum of Understanding with the City of Glendale for the Glendale Water and Power Temporary Spur Track was also approved for execution, utilizing City funding for construction and support services. The Board authorized the CEO to negotiate and execute an agreement with the Peterson Ranch Mitigation Bank to purchase wetland mitigation credits for the Arroyo Simi Bridges Scour Protection Project. Approvals were also granted for the agreement with the City of Laguna Niguel for the Crown Valley Parkway Overpass Widening Project and the adoption of the 2026 Federal, State and Local Legislative Program. Reports received and filed included the Contract Expiration Performance Audit, the Quarterly KPI Report for FY26 Q1, the FY2025-26 Preliminary Working Capital Fund Report, the FY26 Monthly Report for October 2025, the December Legislative Update, and the System Safety, Security, and Compliance Department Activities Update for Q1 FY26. The Chief Executive Officer provided an update addressing a recent train incident on November 28 involving a catastrophic failure and passenger self-evacuation, noting plans to implement better communication protocols and consider backup locomotive procedures. The CEO also highlighted the 2026 World Cup schedule and record-breaking student mobile accounts.

The meeting included discussions and actions on various topics, such as awarding merit pay to the Director of Audit, amending the Authority's 457(b) Plan, and amending a cooperative funding agreement for the San Juan Creek Bridge Replacement Project. The board also discussed and approved a contract for the Orange Subdivision Track Rehabilitation Project and reviewed a fare restructure pilot evaluation. Additionally, the board received updates on grants, compensation, internal audits, fuel purchase programs, investments, and accounts receivable. A legislative update was provided, and the CEO reported on the San Juan Creek Bridge replacement and ridership records.