February 23, 2006

(For Board: March 10, 2006)

REPORT OF THE FINANCE-AUDITING COMMITTEE/
COMMITTEE OF THE WHOLE

 

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

Honorable Members:

A meeting of the Finance-Auditing Committee/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, February 23, 2006, at 10:22 a.m., Chair Stroeh presiding.

Committee Members Present (8): Chair Stroeh; Vice Chair Pahre; Directors Boro, Cochran, Eddie, Reilly and Shahum; President Middlebrook (Ex Officio)
Committee Members Absent (1): Director Murray
Other Directors Present (4): Directors Ammiano, Hernández, Martini and Moylan

Committee of the Whole Members Present (12): Directors Ammiano, Cochran, Eddie, Hernández, Martini, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook

Committee of the Whole Members Absent (7): Directors Brown, Dufty, Kerns, McGoldrick, Murray, Newhouse Segal and Sandoval

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/Ferry Division James P. Swindler; Public Affairs Director Mary C. Currie; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

     
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 staff report is available in the Office of the District Secretary and on the District’s web site.

Nancy Jones, Public Financial Management, was not present at the meeting to provide a verbal report on the status of the District’s investment portfolio. Ms. Jones’ written report was included in the Committee packet.

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/SHAHUM 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 $29,055.63;
     
  b.
Ratify investments made by the Auditor-Controller during the period January 18, 2006, through February 13, 2006, as follows:
     


Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
BNP Paribas Financial Commercial Paper
01/18/06
02/28/06
5,551,847.35
4.43
Bears Stearns Company, Inc. Commercial Paper
01/19/06
02/22/06
7,699,796.22
4.41
AIG Funding, Inc., Commercial Paper
01/30/06
03/01/06
3,359,355.00
4.50
FFCB Bonds
02/01/06
04/06/09
4,814,050.00
4.824
FNMA Notes
02/01/06
03/03/09
3,482,855.80
4.84
Dexia Delaware, LLC Commercial Paper
02/10/06
03/08/06
7,453,696.50
4.50

 

     
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between February 14, 2006, and March 13, 2006, as well as the investment of all other funds not required to cover expenditures that may become available.
     
  d.

Accept the Investment Report for January 2006 prepared by Public Financial Management.

Action by the Board - Resolution

CONSENT-CALENDAR

     
 
AYES (11):  Directors Ammiano, Cochran, Eddie, Hernández, Martini, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; President Middlebrook
NOES (0):   None
     
2.
Authorize Budget Transfer Relative to the Award of Contract No. 2006-B-10, Golden Gate Bridge North Approach & Side Span Physical Security Improvements, to Ghilotti Bros., Inc.
     
 

This item was referred to the Finance-Auditing Committee from the Building and Operating Committee meeting of February 23, 2006, for concurrence with a budget transfer.

Staff recommended and the Committee concurred by motion made and seconded by Directors SHAHUM/EDDIE 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 a budget transfer from the FY 05/06 Bridge Division Capital Budget – Access Platforms Project to the FY 05/06 Bridge Division Capital Budget –Physical Security Improvements Project, in the amount of $985,000 relative to the award of Contract No. 2006-B-10, Golden Gate Bridge North Approach and Side Span Physical Security Improvements.

Action by the Board - Refer to the

Building and Operating Committee Meeting of February 23, 2006

     
 
AYES (12): Directors Ammiano, Cochran, Eddie, Hernández, Martini, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):   None
     
3. Reaffirm the Investment Policy
     
 

The report stated that the single relevant change to the State of California Government Code Section 53646(a)(2) this year is that public agencies are no longer required to annually submit their investment policy to their governing body for approval.  Despite this change in California law, the annual review of the policy by the Board is still encouraged and is considered a prudent practice.  A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

At the meeting Joe Wire summarized the staff report and stated there is no required change to the District’s investment policy this year and that staff will continue to bring this item to the Board each year for approval.

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

The Finance-Auditing Committee recommends the Board of Directors reaffirm the Investment Policy as it currently stands, as outlined in the attached excerpt of the Rules of the Board, RULE XI, Investment Policy.

Action by the Board - Resolution

NON-CONSENT CALENDAR

     
 
AYES (12): Directors Ammiano, Cochran, Eddie, Hernández, Martini, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):   None
     
4.
Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Seven Months Ending January 31, 2006
     
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a schedule comparing categories of Bridge traffic for seven months ending January 31, 2006.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

Discussion ensued, including the following:

  • Director Shahum inquired as to the reason why actual bus fares for January 2006 were lower than both the budgeted figures and last year’s figures while actual bus patronage was higher than both the budgeted figures and last year’s figures.  In response, Mr. Wire explained that the month-to-month data is less detailed in regards to purchase and use and that while a particular month could show an increase, the figures are more realistic over a six-month period.  He stated that there was less of a decrease in bus fare revenue due to an increase in bus fares; however, the District has been experiencing a continued drop in bus patronage for the last fifteen years.  He noted that Bridge tolls and Ferry revenue are doing better than both last year and budget.

Action by the Board - None Required

     
5. Review of Financial Statements for Seven Months Ending January 2006
     
  a. Statement of Revenue and Expenses
     
   

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a financial statement entitled, Statement of Revenues and Expenses for Seven Months Ending January 2006. A copy of the report is available in the Office of the District Secretary and on the District’s web site.

Action by the Board - None Required

     
  b. Statement of Capital Programs and Expenditures
     
   

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a financial statement entitled, Statement of Capital Programs and Expenditures for Seven Months Ending January 31, 2006. A copy of the report is available in the Office of the District Secretary and on the District’s web site.

Action by the Board - None Required

     
6. Public Comment
     
 

There was no public comment.

     
7. Adjournment
     
  All business having been concluded, the meeting was adjourned at 10:30 a.m.
   

Respectfully submitted,

/s/ J. Dietrich Stroeh, Chair
Finance-Auditing Committee

Attachment:        Excerpt of the Rules of the Board, RULE XI, Investment Policy