Meetings

January 27, 2005
(For Board: February 11, 2005)

REPORT OF THE FINANCE-AUDITING COMMITTEE

Honorable Board of Directors
Golden Gate Bridge, Highway
and Transportation District

Honorable Members:

A meeting of the Finance-Auditing Committee was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, January 27, 2005, at 11:30 a.m., Chair Stroeh presiding.

Committee Members Present (7): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie, Reilly and Shahum; President Middlebrook (Ex Officio)

Committee Members Absent (2): Directors Boro and Murray

Other Directors Present (2): Directors Harrison and Smith

Staff Present: General Manager Celia G. Kupersmith; Auditor-Controller Joseph M. Wire; District Engineer Denis J. Mulligan; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C. Chiaroni; Deputy General Manager/Administration and Development Teri W. Mantony; Planning Director Alan R. Zahradnik; Public Affairs Director Mary C. Currie; Workers’ Compensation Analyst Mary Regan; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Trainee Patsy Whala

Visitors Present: Nancy Jones, Public Financial Management; Ron Ramos, Shannon Terry and Marianne Sylvania, Claims Management, Inc.

1.

Ratify Actions by the Auditor-Controller

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith outlined commitments, disbursements and investments made on behalf of the District. A copy of the report is available in the Office of the District Secretary.

At the meeting, Nancy Jones reported on the latest economic news and described current interest rates in the District’s portfolio. Ms. Jones stated that the current economic outlook is favorable, with the economy growing at a rate of 4%. She noted that consumer confidence and spending is on the increase. Experts maintain that the fuel prices will not continue at the levels seen last year. She stated that the Federal Reserve Bank has raised the three-month and six-month short-term rates, while the five-year rates have declined. However, she was pleased to report that the long-term securities purchased by the District some months back have retained their value. Ms. Jones further reported that on December 17, 2004, the District invested funds in Federal Agency discount notes for 18 days which earned $1,520. She commented that the District will continue to take advantage of short-term investment activity, as is predicted by the analysts that “rates will keep rising until rates stop rising.”

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/COCHRAN to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends that the Board of Directors authorize the following actions by the Auditor-Controller:

a. Ratify commitments and/or expenditures totaling $81,721.08;

b. Ratify investments made during the period December 07, 2004 through January 17, 2005, as follows:

Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
Dexia Delaware LLC Comm. Paper
12/09/04
03/08/05
$7,654,884.42
2.37
Citigroup Global Commercial Paper
12/10/04
01/19/05
$5,969,705.00
2.30
FNMA Discount Note
12/17/04
01/03/05
$9,489,906.25
2.25
FNMA Discount Note
12/20/04
01/03/05
$10,499,804.62
2.25

c. Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between January 18, 2005 and February 14, 2005, as well as the investment of all other funds not required to cover expenditures that may become available; and,

d. Accept the Investment Report for December 2004 prepared by Public Financial Management.

Action by the Board - Resolution
CONSENT CALENDAR

AYES (7): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie, Reilly and Shahum; President Middlebrook (Ex Officio)
NOES (0): None
ABSENT (2): Directors Boro and Murray

   
2.

Status Report on the Financial Management Information System Project

Ms. Kupersmith advised the committee that the item listed on the agenda as Item No. 4, Status Report on the Financial Management Information System Project, would be continued until the February 10, 2005, meeting of the Finance-Auditing Committee.

   
3.

Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Five and Six Months Ending November and December 2004, Respectively

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided schedules comparing categories of Bridge traffic, Bridge tolls, Golden Gate Ferry patronage and fares, as well as Golden Gate Transit patronage and fares for five months ending November 30, 2004, and six months ending December 31, 2004. Copies of the reports are available in the Office of the District Secretary.

Discussion ensued, including the following:
In response to an inquiry by President Middlebrook regarding increased ferry revenue, Mr. Wire stated that the increase is attributed to an increase in both ridership and ferry fares. Ridership has remained strong through the economic recession and more passengers are riding the ferry due to the convenience factor of the high-speed ferry. He also noted that the District is doing slightly better in revenue than budgeted for in Fiscal Year 2005.

Action by the Board – None Required

   
4.

Review of Financial Statements for Five and Six Months Ending November and December 2004, Respectively

a. Statements of Revenue and Expenses

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided financial statements entitled, Statement of Revenues and Expenses, for five months ending November 2004, and six months ending December 2004. Copies of the reports are available in the Office of the District Secretary.

b. Statements of Capital Programs and Expenditures

In a memorandum to Committee, Capital and Grant Programs Manager Nina Rannells, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided financial statements entitled, Statement of Capital Programs and Expenditures, for five months ending November 30, 2004, and six months ending December 31, 2004. Copies of the reports are available in the Office of the District Secretary.

Action by the Board – None Required

   
5.

Review of Auditor-Controller’s Quarterly Report on Authorized Budget Adjustments and Budget Transfers

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported that during the three-month period from October 1, 2004, through December 31, 2004, there were no budget adjustments made. A copy of the report is available in the Office of the District Secretary.

Action by the Board – None Required

   
6.

Review of Auditor-Controller’s Quarterly Report on Contracts and Change Orders/Contract Amendments Executed Under the General Manager’ s Authority

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a quarterly report for the months of October, November and December 2004, of Fiscal Year 2005, for all contracts and change orders executed under the General Manager’ s procurement authority, as set forth in the Rules of the Board. A copy of the report, including attached charts outlining applicable contracts and change orders, is available in the Office of the District Secretary.


Action by the Board – None Required

   
7.

Closed Session

Attorney David Miller, at the request of Chair Stroeh, stated that the Committee would convene in closed session to discuss one matter of pending litigation, listed on the agenda as Item No. 9.a.1., Noble, et al., and Keck, et al., vs. Golden Gate Bridge, Highway and Transportation District (District). Mr. Miller stated the Committee would also discuss four matters of pending workers’ compensation litigation listed on the agenda as Item Nos. 9.b.1.a., Marvin C. Miller vs. District; 9.b.1.b., Veronica Savoy vs. District; 9.b.1.c., Teresa Wilson vs. District; and, 9.b.1.d., LaRita Hill vs. District.

After closed session, Chair Stroeh called the meeting to order in open session with a quorum present. Attorney Miller reported that the Committee met in closed session, as permitted by the Brown Act, to discuss items of pending litigation, as listed above. He stated that with regard to Item No. 9.a.1, the Committee is making a recommendation that will be presented to the Board of Directors for discussion and necessary action at its meeting of January 28, 2005. Mr. Miller also stated that with regard to the workers’ compensation items as noted above, the Committee provided settlement authority for disposition of these matters.

Action by the Board – None Required

   
8.

Public Comment

There was no public comment.

   
9.

Adjournment

All business having been concluded, the meeting was adjourned at 12:00 p.m.

Respectfully submitted,

/s/J. Dietrich Stroeh, Chair
Finance-Auditing Committee
JDS:JST:PLW:plw