The board held extended discussion about the Low Carbon Transit Operations Program (LCTOP) funds, a local electrification reserve, and a proposed $2 promotional fare for the North State Express corridor.

Staff told the board LCTOP distributions (historically about $70k per year) are projected to decline to roughly $46k next year. The agency has used LCTOP primarily to fund a free‑ride subsidy program (students, seniors, veterans, disabled) and historically set aside funds for fleet electrification planning. Staff reported an electric‑bus fund balance of about $139,000 that could serve as local match for its first electric vehicle purchase; the agency also has a $160,000 Volkswagen settlement award toward the bus, which still leaves a local match gap.

Board members expressed strong support for preserving the free‑ride subsidy because it serves seniors, disabled riders, students and veterans and because the program drives long‑term ridership growth. Staff proposed options: (1) spend the entire $139,000 on the electric bus purchase to reduce capital shortfall, (2) transfer a portion (for example $30,000–$40,000) to the free‑ride program to extend it another year, or (3) find other local match sources (State of Good Repair fund) to cover bus purchases. Staff said taking $30k–$40k from the electrification reserve could buy one more year for the free‑ride subsidy while preserving most of the capital match.

Separately, staff presented a partner‑led marketing concept for the North State Express (a collaboration with Humboldt, Mendocino and Lake Transit) that proposes a $2 per segment promotional fare (two‑hour promo) to make a Del Norte‑to‑Santa Rosa trip $6 across the three agencies. Staff analyzed impacts for RCTA’s Route 20: adult cash fares range from $2.50 to $14 by distance, and about 80% of Route 20 riders use short two‑zone trips. Converting all Route 20 trips to a $2 flat fare could reduce RCTA fare revenue by about $12,000 per year; limiting the promo to only the North State Express long trips would reduce the agency’s projected losses to roughly $5,000–$6,000 per year. Staff warned that mixed fare rules on the same route add operational complexity for drivers and fare collection and that a uniform regional approach would be easier to market.

No formal board action was taken. Staff said they will produce additional financial analyses, including an assessment of other local match funds, and return with recommendations at a future meeting.