March 23, 2006
(For Board: April 28, 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, March 23, 2006, at 10:20 a.m., Chair Stroeh presiding.

Committee Members Present (9): Chair Stroeh; Vice Chair Pahre; Directors Boro, Cochran, Eddie, Murray, Reilly and Shahum; President Middlebrook (Ex Officio)
Committee Members Absent (0): None
Other Directors Present (4): Directors Hernández, Martini, Moylan and Newhouse Segal

Committee of the Whole Members Present (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
Committee of the Whole Members Absent (6): Directors Ammiano, Brown, Dufty, Kerns, McGoldrick, and Sandoval

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; 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; Public Affairs Director Mary C. Currie; Director of Planning Alan R. Zahradnik; Director of Risk Management and Safety William Stafford; Deputy District Engineer Ewa Z. Bauer; Assistant Clerk of the Board Karen B. Engbretson

Visitors Present: Nancy Jones, Public Financial Management; Frederick Robinson, Marsh Risk and Insurance Services

     
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.

At the meeting, Nancy Jones described the latest economic news and current interest rates for the District’s portfolio. She reported that the current yields on long-term securities have fallen, while rates for short-term securities have increased. Ms. Jones further stated that the District’s portfolio is extremely liquid, with over $30 million in shorter-term securities purchased in the last quarter set to mature in the next few weeks. She reported that the Portfolio Manager will be working with the Auditor-Controller to restructure the District’s portfolio over the next two to three months to reinvest in more securities in the 4% to 5% range. She noted that with this restructuring, the District’s portfolio will more closely match the District’s actual cash flow needs.

Staff recommended and the Committee concurred by motion made and seconded by Directors EDDIE/PAHRE 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 $57,580.17;
     
  b.
Ratify investments made by the Auditor-Controller during the period February 14, 2006, through March 13, 2006, as follows:
     
SECURITY
PURCHASE DATE
MATURITY DATE
ORIGINAL COST
PERCENT YIELD
HBOS Treasury CD
02/15/06
03/15/06
3,461,264.13
4.53
HBOS Treasury CD
02/17/06
03/20/06
4,854,520.79
4.53
Bears Stearns CO INC Commercial Paper
02/22/06
03/24/06
7,833,513.75
4.50
UBS Finance DE Commercial Paper
02/28/06
04/03/06
5,579,812.51
4.57
CBA (Delaware) Finance Commercial Paper
03/01/06
03/14/06
3,371,512.38
4.50
AIG Funding Inc. Commercial Paper
03/08/06
04/07/06
7,477,227.00
4.60

 

  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between March 14, 2006, and April 17, 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 February 2006 prepared by Public Financial Management.

Action by the Board - Resolution
CONSENT CALENDAR

     
 
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
2.
Authorize Budget Increase in the FY 05/06 Bridge Division Capital Budget Regarding Execution of an Amendment to the Agreement with the California Highway Patrol Relative to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures, for Traffic Enforcement Services
     
 

This item was referred to the Finance-Auditing Committee from the Building and Operating Committee meeting of March 23, 2006, for concurrence with a budget transfer. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site. 

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/REILLY 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 increase in the FY 05/06 Bridge Division Capital Budget - Golden Gate Bridge Seismic Retrofit Phase II Project, in the amount of $100,000, regarding execution of an Amendment to the Agreement with the California Highway Patrol Relative to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures, for traffic enforcement services.

Action by the Board – Refer to the
Building and Operating Committee Meeting of March 23, 2006

     
 
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
3. Approve Implementation of a Five-Year Transit Fare Program and Amend Master Ordinance 2006
     
 

In a memorandum to Committee, Planning Director Alan Zahradnik, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith presented staff’s recommendation to approve implementation of a five-year transit fare program of annual 5% fare increases applied to regional bus, complementary ADA paratransit and ferry services, effective July 1, 2006, through June 11, 2011. The report stated that this five-year transit fare program is necessary to generate revenues in order to meet projected operating expenses.

The report stated that the Board of Directors has directed staff to develop a new transit fare program as a successor to the five-year fare program adopted in 1998. In the context of the District’s current fiscal situation, the Board suggested that the following objectives be included in a proposed five-year fare program:

 
  • Increasing regional bus and paratransit fare recovery towards a 25% goal and ferry fare recovery towards a 40% goal as a means of continuing transit services with an appropriate level of passenger support.
  • Increasing transit fares as needed to achieve a $9 million revenue generation target proposed by staff to help address a projected $79 million five-year District financial shortfall.
     
 

The report also stated that in response to this direction, staff developed several fare program alternatives to accomplish the Board’s objectives. In comparing these alternatives, consideration was given to: 1) the current downward trend in regional bus ridership; 2) to equitably distribute the transit passenger revenues with transit service costs; and, 3) to maintain the affordability of public transportation. Staff concluded its analysis by recommending a five-year transit fare program, consisting of annual 5% fare increases for regional bus, ferry and paratransit services to take effect every July 1st over a five-year period, beginning July 1, 2006 and ending June 30, 2011. The report noted that the five-year transit fare program would be subject to annual review, concurrent with the District budget development process, to determine if adjustment to the five-year program is needed.  In addition, the report stated that the five-year transit fare program excludes: 1) fares for local bus travel within Marin County, which are set by the Marin County Transit District; 2) special event bus and ferry service fares, which are periodically adjusted by the Board as needed; and, 3) promotional and other specific service-related fares, which are subject to separate financial performance objectives and are also established by the Board under separate review and action.

The report further stated that the Board of Directors, by Resolution No. 2006-005 at its January 13, 2006 meeting, authorized the setting of three public hearings, each immediately preceded by a two-hour informational open house, to receive public comment on the proposed five-year fare program, as noted below:
 
  • Thursday, February 16, 2006, at 7:00 p.m., in the City Council Chambers, Rohnert Park City Hall, 6750 Commerce Boulevard, Rohnert Park, CA;
  • Wednesday, March 8, 2006, at 6:00 p.m., in the Board Room, Administration Building, Golden Gate Bridge Toll Plaza, San Francisco, CA; and,
  • Thursday, March 9, 2006, at 6:00 p.m., in the Activities Room, The Whistlestop, 930 Tamalpais Avenue, San Rafael, CA.
     
 

The report stated that during the public comment period from January 24, 2006 to March 9, 2006, public comments from 28 individuals were received.  Staff reviewed and categorized all public comments, and prepared written responses to the primary categories, which were contained in the staff report.  The staff report also included fare tables, which outlined the proposed 5% fare increases to take effect every July 1 over the next five years.  A copy of the report is available from the Office of the District Secretary and on the District’s web site.

At the meeting, Celia Kupersmith briefly reported on the outcome of the three public hearings that were held in February and March 2006 regarding the five-year transit fare program.  She expressed her appreciation to the staff members in the Planning, Marketing and District Secretary’s departments who had assisted with coordinating the informational open houses and public hearings.

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

The Finance-Auditing Committee recommends that the Board of Directors approve implementation of a Five-Year Transit Fare Program of annual five percent fare increases applied to regional bus, complementary ADA paratransit and ferry services, effective July 1, 2006 through June 30, 2011, as outlined in the attached Ordinance; and amend Master Ordinance 2006 accordingly.

Action by the Board – Ordinance
NON-CONSENT CALENDAR

     
 
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
 
[Note: The above recommendation was forwarded to the Board of Directors meeting of March 24, 2006, for action.]
     
4. Approve Actions Relative to the Property Insurance Program
     
 

In a memorandum to Committee, Director of Risk Management and Safety William Stafford, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation regarding the annual renewal of the District’s Property Insurance Program, which includes the following three policies: (1) District Buildings and Facilities policy; (2) Boiler & Machinery policy; and, (3) Bridge Physical Damage and Use and Occupancy policy (Bridge Insurance policy).  The report included recommendations for renewal for the District Buildings and Facilities and Boiler & Machinery policies, and a recommendation to establish a Restricted Golden Gate Bridge Self-Insurance Loss Reserve (Restricted Bridge Reserve) as an alternative to renewing the Bridge Insurance policy.

The report described the renewal options for the District Building and Facilities policy, with the recommended option to renew this policy with the incumbent panel of carriers, with reduced coverage limits for the earthquake and flood portions of the coverage.  The report stated that District staff performed an earthquake analysis study and determined that the District could reduce the coverage limits from $45 million to $20 million.  The earthquake coverage model indicates that there is a 90% chance of the District incurring a $20.5 million loss in 100 years.  The limits for fire coverage in this renewal option remain the same at $45 million, and the deductibles for all three coverage categories remain at $250,000 each loss, including 5% of value for flood and earthquake, at a premium of $549,536.

The report described the recommendation for renewal of the Boiler & Machinery policy with the incumbent carrier, stating that this policy covers losses from explosion of boilers and steam pressure vehicles, as well as accidental breakdown of boilers and other mechanical or electrical equipment.  The recommended renewal maintains the existing coverage limits of $1 million per accident and a deductible of $1,000 per accident, at a premium of $2,911.

The report stated upon the recommendation of Marsh Risk & Insurance Services (Marsh), the District’s insurance advisors, staff examined the value of the Bridge Insurance policy, and found that the creation and funding of a self-inured loss reserve would be a viable alternative to renewing the policy with the incumbent, ACE.  This non-renewal option, including the practicality of establishing a Restricted Bridge Reserve, was discussed at length by the Committee at its March 9, 2006 meeting.  The report stated that the creation of this restricted reserve, to be used in case of catastrophic damage to the Bridge, is a viable way to develop capital over time to replace the coverage provided by the Bridge Insurance policy.  Using yearly premium dollars only, such reserves would take 13.5 years to develop a fund for the loss of use portion of the coverage limits and a total of 23 years to develop a fund equivalent to the coverage limits in the entire Bridge Insurance policy.  The amount of time necessary to develop the Restricted Bridge Reserve is based on conservative assumptions that:  1)  the coverage limits would remain the same at $50 million for combined physical damage and loss of use; 2)  premiums would remain $1.3 million annually; and, 3)  the investment income on this reserve would average 5% annually. 

The report described the basic rules of governance that would be essential to the long-term capitalization, as well as the fiscal stability, of the Restricted Bridge Reserve, as follows:
 
  • The sole use of the Restricted Bridge Reserve will be for catastrophic physical damage to the Golden Gate Bridge or for loss of revenue that may be incurred by damage to the Bridge.
  • The Restricted Bridge Reserve can only be accessed by approval of the Board of Directors for physical damage to the Bridge in excess of $10 million and/or loss of revenue in excess of 20 days.
  • Annually, on recommendation of the staff, along with Committee and Board approval, allocate additional capital to the reserve to fully fund the Restricted Bridge Reserve over time.
     
 

The report noted the fiscal impact of the formation of the Restricted Bridge Reserve, which would receive an initial funding of $300,000 from the FY 05/06 Bridge Division Operating Budget, which will increase the reserves by $303,000, including interest earnings.  The funding of $1.3 million to the Restricted Bridge Reserve for FY 06/07 will increase the reserves by $1.35 million, including interest earnings.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Director of Risk Management and Safety William Stafford summarized the staff report, briefly describing the changes in the property insurance marketplace.  Mr. Stafford stated that in response to inquiries by members of the Committee at its March 9, 2006 meeting, staff researched the insurance experience of other bridges and tunnels across the United States, and learned that many of these properties experienced increases in property insurance premiums after such events as Hurricanes Katrina and Rita.  Because of these increasing insurance premiums, some bridge and tunnel properties have opted to become self-insured.

Discussion ensued, including the following:
     
 
  • An extensive discussion ensued among several members of the Committee of the Whole, Attorney Miller and General Manager Celia Kupersmith regarding the preferred wording to be included in the Resolution establishing the Restricted Bridge Reserve.  Directors Boro, Pahre, Middlebrook, Martini and Shahum expressed the following concerns:
    • that the Restricted Bridge Reserve would be used solely to cover losses from catastrophic damage to the Golden Gate Bridge or the sustained loss of toll revenue;
    • that the minimum amount of $25 million would be established for the Restricted Bridge Reserve, and that this amount would take into account future inflation; and,
    • that an annual review would be undertaken of Bridge Insurance availability and cost to determine whether to purchase this insurance or continue to allocate funds to the Restricted Bridge Reserve.
     
 
At the Committee of the Whole’s direction, Ms. Kupersmith and Attorney Miller agreed to add specific language to the Resolution that would address the above-listed concerns.
     
  a. Approve Actions Relative to the Property Insurance Program
     
   
Staff recommended and the Committee concurred by motion made and seconded by Directors BORO/SHAHUM to forward the following recommendation to the Board of Directors for its consideration:
     
   
RECOMMENDATION
     
   

1.    Renew the District Buildings and Facilities policy with ACE/Westchester, as well as the incumbent panel of carriers, providing “all risk” coverage for all land-based District facilities, except the Bridge itself, in case of fire, flood and earthquake, with a limit of liability of $20 million per flood and earthquake occurrence, with a limit of liability of $45 million per fire occurrence and a deductible of $250,000 each loss for fire, including 5% of value for flood and earthquake, at a premium of $549,536, for a one-year term, effective April 8, 2006, through April 7, 2007; with the understanding that requisite funds are available in the FY 05/06 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 06/07; and,

   

2.    Renew the Boiler and Machinery policy with Hartford Steam Boiler Company, providing coverage for breakdown of equipment, including all boilers, fired storage water heaters, fired coil water heaters, electric steam generators, sandblasting equipment and all metal unfired pressure vessels used as air tanks, which objects require city and state inspection and certification, with a limit of liability of $1 million per accident and a deductible of $1,000 per accident, at a premium of $2,911, for a one-year term, effective April 8, 2006, through April 7, 2007; with the understanding that requisite funds are available in the FY 05/06 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 06/07.

Action by the Board – Resolution
NON-CONSENT CALENDAR

     
   
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
  b.
Authorize the Establishment of a Restricted Bridge Self-Insurance Loss Reserve to be Used in the Event of Catastrophic Damage to the Golden Gate Bridge
     
   
Staff recommended and the Committee concurred by motion made and seconded by Directors BORO/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 establishment of a Restricted Bridge Self-Insurance Loss Reserve to be used in the event of catastrophic damage to the Golden Gate Bridge or the sustained loss of toll revenue, and designates initial funding in the amount of $1,300,000 for FY 06/07 from the FY 06/07 Bridge Division Operating Budget and a pro rated amount of $300,000 for the remainder of FY 05/06 from the FY 05/06 Bridge Division Operating Budget; with the understanding that:

   

a.    It is the intent of the Board of Directors (Board) that on an annual basis, a decision will be made based on consideration of financial market conditions, insurance availability and cost, either to purchase insurance to cover bridge physical damage risks or to allocate additional funds into the Restricted Bridge Self-Insurance Loss Reserve established by this Resolution, recognizing that the objective of the Board of Directors is to achieve a fully-funded contingency reserve over time at a minimum level of $25 million in 2006 dollars for both physical property damage and loss of use;

b.    It is conservatively estimated that it could take 23 years to fully fund this reserve; and,

c.    It is the intent of the Board that the Restricted Bridge Self-Insurance Loss Reserve would be available to answer major claims for physical damage to the Bridge in excess of $10,000,000, and/or extended loss of revenue in excess of 20 days, upon the approval of the Board of Directors.

Action by the Board – Resolution
NON-CONSENT CALENDAR

     
   
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
   
[Note: The above recommendations were forwarded to the Board of Directors meeting of March 24, 2006, for action.]
     
5.
Approve the Addition of the FasTrak System Replacement Project to the FY 05/06 Bridge Division Capital Budget and Authorize Issuance of Request for Proposals
     
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation to approve the addition of $4.8 million to the FY 05/06 Bridge Division Capital Budget for the FasTrak System Replacement Project, and authorize the issuance of a Request for Proposals for this project.  The report stated that at the December 8, 2005 meeting of the Committee, staff outlined the plan for the future direction of the FasTrak Lanes and Plaza/Host systems.  The report described the FasTrak lanes as being comprised of various pieces of technical equipment such as treadles, light curtains, receipt printers, touch screens, card readers, changeable message signs, driver feedback displays, tag readers, surveillance cameras, violation enforcement cameras, lane controller hardware and software and the data concentrator.  The lane equipment was installed in 1999 and many of the components are reaching the end of their estimated seven-year life cycle.  The report also described the Plaza/Host system, which is comprised of a variety of functions including employee database, persons with disabilities database, vault, Revenue-Audit processes and traffic and revenue reporting, and is also reaching the end of its life cycle.

The report also stated that California State law permits the District to utilize a competitive negotiation process to procure specialized equipment, including toll collection systems, whereby qualitative factors, in addition to price, are used as a basis for selection.  Staff finds that given the customized and evolving nature of the FasTrak work and equipment, a low bid process is not feasible nor in the public’s best interest.  A Request for Proposal (RFP) process will help to ensure high standards of performance and reliability of the system, timely delivery, as well as well as ensure that the contractor has specialized experience and expertise in toll collection systems.  The RFP will be advertised, qualified contractors will be solicited and the proposals will be evaluated based upon identified criteria, including qualifications and technical approach, in addition to price.

The report further stated that although funds for FasTrak System Replacement Project will not be expended until FY 06/07, staff is seeking funding authorization in FY 05/06, in order to proceed with the RFP process and award the contract by June 2006.  The estimated project budget of $4.8 million includes technical oversight of the project, as well as upgrades/replacements for lane hardware and software, various lane peripheral devices and plaza/host hardware and software.   Staff recommends approval of the addition of $4.8 million to the FY 05/06 Bridge Division Capital Budget for the FasTrak System Replacement Project and authorization to issue the RFP for this project.  A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

Discussion ensued, including the following:

     
 
  • President Middlebrook requested that staff provide the Committee with a comprehensive status report on the FasTrak System at a future meeting of the Committee.  She also inquired as to the status of providing free transponders to FasTrak customers.  In response, Mr. Wire stated that due to the high cost of manufacturing FasTrak transponders, the Bay Area Toll Authority (BATA) agreed to subsidize the District’s purchase of transponders for three years.  He also stated that there is one year remaining to this agreement with BATA.  Ms. Kupersmith elaborated that staff is investigating the future possibility of having FasTrak customers purchase their transponders at retail establishments.
 
  • In response to inquiries from Directors Hernández and Newhouse Segal, Mr. Wire explained the background and history of the cost of transponders, which have been provided free to the District’s FasTrak customers since FasTrak was implemented on the Golden Gate Bridge in 2000.
 
  • Director Boro inquired as to why BATA has not considered establishing a toll discount for FasTrak users of the state-owned toll bridges in the Bay Area.  In response, Ms. Kupersmith explained that FasTrak market penetration is high on the Golden Gate Bridge, due in part to the $1 toll discount the District offers to FasTrak users of the Bridge.  She noted, however, that BATA does not have the same authority as the District to set tolls or toll discounts.
     
 
Staff recommended and the Committee concurred by motion made and seconded by Directors MURRAY/REILLY to forward the following recommendation to the Board of Directors for its consideration:
     
 
RECOMMENDATION
     
 

The Finance-Auditing Committee recommends that the Board of Directors approve the addition of the FasTrak System Replacement Project to the FY 05/06 Bridge Division Capital Budget in the amount of $4.8 million; and, authorize the issuance of a Request for Proposals.

Action by the Board – Resolution
NON-CONSENT CALENDAR

     
 
AYES (13): Directors Cochran, Eddie, Hernández, Martini, Murray, Newhouse Segal, Pahre, Reilly, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
  [Note: The above recommendation was forwarded to the Board of Directors meeting of March 24, 2006, for action.]
     
6.
Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Eight Months Ending February 28, 2006
     
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a schedule comparing categories of Bridge traffic for eight months ending February 28, 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 Boro inquired as to the reason why actual ferry patronage figures were significantly higher than budgeted for November 2005, December 2005, January 2006 and February 2006, despite  the inclement weather associated with those months.  In response, Alan Zahradnik explained that staff will be undertaking a ferry passenger survey beginning March 29, 2006, in order to ascertain the reasons for the increase in ferry patronage.

Action by the Board – None Required

     
7.

Review of Financial Statements for Eight Months Ending February 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 Eight Months Ending February 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 Eight Months Ending February 28, 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

     
8. Public Comment
     
  There was no public comment.
     
9. Adjournment
     
  All business having been concluded, the meeting was adjourned at 11:00 a.m.
     

Respectfully submitted,

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

Attachment: Ordinance No. 2006-02, An Ordinance to Amend Master Ordinance 2006, as Amended, to Adopt the Five-Year Transit Fare Program For July 1, 2006 Through June 30, 2011