A group of more than 50 retirees, customers, former executives and former board members of the San Joaquin Regional Transit District (RTD) sent a letter expressing no confidence in the agency’s leadership and calling for an independent investigation and external audit, alleging financial mismanagement, governance failures and improper personnel practices.
The letter, dated June 15, was authored by former RTD Board Chair Gary Giovanetti and signed by several other former RTD leaders, including former RTD CEO Alex Clifford and former board member Les Fong. It called for what the group described as “immediate outside intervention” in recent appointments, policy decisions and actions of the San Joaquin Regional Transit District Board of Directors and leadership team.
Giovanetti said he was asked to serve as the lead signer because of his experience with RTD, local government and regional transportation organizations. He served 18 years on the RTD board, including as board chair, and previously served six years on the Stockton City Council and two years as Stockton’s vice mayor. He also spent 26 years with the San Joaquin Council of Governments (SJCOG) as an ex-officio member, board member and board chair and held leadership positions with the American Public Transportation Association.
Giovanetti, who resigned from the RTD board following the February termination of Clifford, said he previously compiled information outlining concerns about RTD and submitted it to the San Joaquin County Civil Grand Jury before leaving the board.
He said the June 15 letter was a separate effort involving stakeholders who wanted to document concerns about recent decisions by the agency’s board and leadership team following the appointments of Derek Graves Jr., Geneva Moorad and Aaron Edwards to the board.
“My number one concern has always been our ridership,” Giovanetti said. “There are transit-dependent individuals. They are visually challenged. They are physically challenged. They’re economically challenged. They may not have a car so they depend on the bus to get to work. There’s a huge population out there that is transit-dependent and if, in fact, these current actions lead to the demise or the reduction of service, it will be a serious concern of mine.”
Giovanetti said he believes an independent review is necessary because he does not believe the current board can objectively evaluate its own actions.
“If the board’s actions are questionable, if the board’s actions are suspect, how can you expect that board then to self-govern itself?” Giovanetti said. “I don’t see how they could self-govern themselves when they are committing the actions that they are. I really do think it takes some independent investigation to look into it, such that all the stones are lifted up and all the rocks are looked underneath, and the actions are then inspected with the authority of someone who is in a position to judge right or wrong.”
RTD officials did not respond to a request for comment by deadline.
RTD serves as the primary public transit provider for San Joaquin County, operating a variety of local, intercity and commuter routes. RTD’s services rely on funding from local measures, such as Measure K, as well as state and federal grants to maintain operations and capital projects.
Letter raises concerns over RTD governance, finances and personnel decisions
In the letter, signatories said longtime board members were replaced with newer, inexperienced members in a way that shifted the board’s voting majority to newer appointees.
They also alleged that plans to terminate the former CEO were made before the board held a regular meeting and suggested that outside parties may have influenced board and CEO decisions.
“Parties who do not have the best interests of RTD and its employees and retirees, and most importantly its riders, are trying to destroy RTD — an award-winning, financially secure agency that has proudly served the residents of San Joaquin County for decades,” the letter said.
The letter also pointed to what it described as significant changes in the agency’s financial position, alleging that RTD reserves declined from about $62 million to $26 million over a three-month period. Signatories further alleged that the agency has relied too heavily on one-time funding sources to support ongoing operating expenses, warning that such practices could create long-term structural deficits.
The letter raised concerns about the board’s decision to abandon a $62 million legal action against SJCOG involving SB 125 grant reimbursements and excess Measure K funds the agency alleges are owed to RTD. It also alleged that allocating unentitled Federal Transit Administration Section 5307 funds to the city of Lathrop and approving manager and staff pay increases without addressing the agency’s fiscal-year deficit could harm RTD’s long-term financial sustainability.
The group also raised concerns about executive hiring and compensation practices, alleging that some recent appointments may not meet the minimum qualifications for their positions. The letter specifically questioned whether the board-appointed CEO, acting chief financial officer and chief operating officer met the qualifications outlined for their roles. It also alleged that board members may have influenced recruitment processes, resulting in the selection of candidates the letter claimed lacked the transit experience and skills needed for their positions.
The letter alleged that salary increases were granted to some employees without formal equity studies, documented justification or board approval. It claimed the CEO approved at least a 10% pay increase for six months for direct reports to assist with training the new chief operating officer. The letter further contended that some increases may have exceeded board-approved salary ranges.
The group questioned the hiring of two administrative staff members who previously worked for the Stockton Unified School District, alleging that the positions were not publicly posted, may not have received proper board authorization and may not have followed RTD’s recruitment policies and procedures. Interim RTD CEO Bernard Veasley previously worked for the school district as its transportation director.
The group alleged that prior professional relationships among RTD leadership may have influenced recruitment and termination decisions. Stockton Mayor Christina Fugazi and the Stockton City Council appointed Graves Jr. to the RTD board, which later appointed Veasley as CEO. The group noted that Graves Jr., Fugazi and Veasley had previously worked for the Stockton Unified School District. Veasley later hired two additional employees who had previously worked for the district.
The letter detailed allegations surrounding the June 2 terminations of three RTD leaders, including former Director of Human Resources Noel Mink, former Marketing and Customer Engagement Supervisor Maximilian Cao and former Director of Government Affairs Kenneth Baxter. It alleged the employees were given a choice between signing resignation letters or receiving termination notices, were not immediately provided standard termination materials, including COBRA election forms, and were denied severance the letter claimed they were entitled to receive under the RTD Personnel Manual. The letter also claimed that at least two employees were videotaped while collecting personal belongings without their consent.
The letter described additional workplace concerns, including allegations that some female employees were subjected to repeated derogatory remarks and that other inappropriate comments were made in the workplace. It alleged employees were subjected to comments that included terms such as “greedy,” “prostitute” and “from the streets,” and that at least one racially charged phrase was used in the workplace. The letter further alleged that a comment was made about running over a female employee to help reduce the budget.
The group contended that some women were prohibited from communicating with employees outside their departments and that cross-functional communication was restricted by requiring internal department communications to be routed through department chiefs.
The letter raised questions about procurement practices, alleging that the RTD board hired outside accounting services without following a competitive procurement process that would have allowed for proper vetting of vendors’ experience, skills and qualifications. It also questioned whether the selection of the new board attorney complied with competitive procurement requirements under RTD policy and applicable state and federal guidelines.
The group criticized RTD’s request for a Federal Transit Administration waiver to avoid adding a full voting seat for RTD on the SJCOG board, alleging that the change could weaken the agency’s voice in future funding decisions. The letter stated that RTD’s voting seat was established through the federal Moving Ahead for Progress in the 21st Century Act and reaffirmed during a recent federal Transit Management Area review of SJCOG.
“Every day without accountability places RTD’s financial stability, essential transit services, institutional integrity and long-term future in greater jeopardy,” the letter said.
The letter was sent to 36 federal, state and local agencies.
Lee requests state review of RTD allegations
Stockton Vice Mayor Jason Lee said July 6 that he provided the letter to the California State Controller’s Office. In a separate letter to State Controller Malia M. Cohen, Lee requested that the office consider the allegations as part of any existing review of RTD or expand the scope of any audit or investigation if warranted.
“Public agencies entrusted with taxpayer dollars must operate with transparency, accountability and integrity,” Lee said. “When a former board chair, former transit executives, retirees, employees, riders and longtime community stakeholders collectively raise serious concerns regarding governance and fiscal stewardship, those concerns deserve an independent and objective review.”
Lee said his request is intended to ensure oversight officials have the information necessary to determine whether additional review is warranted and “not to prejudge the allegations.”
“As elected officials, we have an obligation to protect the public’s trust and ensure that agencies receiving public funding remain accountable to the communities they serve,” Lee said. “Independent oversight is not about politics. It is about preserving public confidence and ensuring responsible stewardship of taxpayer resources.”
Record reporter Hannah Workman covers news in Stockton and San Joaquin County. She can be reached at hworkman@recordnet.com or on Twitter @byhannahworkman. Support local news, subscribe to The Stockton Record at https://www.recordnet.com/subscribenow.
This article originally appeared on The Record: San Joaquin RTD stakeholders allege ‘hostile takeover,’ call for intervention
Reporting by Hannah Workman, The Stockton Record / The Record
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By Hannah Workman, The Stockton Record | USA TODAY Network
