April 28, 2006
(For Board: May 12, 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 Friday, April 28, 2006, at 9:45 a.m., Chair Stroeh presiding.

Committee Members Present (6): Chair Stroeh; Directors Boro, Cochran, Eddie, Reilly; President Middlebrook (Ex Officio)
Committee Members Absent (3): Vice Chair Pahre; Directors Murray and Shahum
Other Directors Present (7): Directors Dufty, Kerns, Martini, McGoldrick, Moylan, Newhouse Segal and Sandoval

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

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; Acting Deputy General Manager/Bus Division G. Gene Walker; Public Affairs Director Mary C. Currie; Procurement and Retail Operations Director Lori Murray; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Karen B. Engbretson

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 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 for the period February 1, 2006, through February 28, 2006, totaling $88,763.14;
     
  b.
Ratify investments made by the Auditor-Controller during the period March 14, 2006, through April 17, 2006, as follows:
     
SECURITY
PURCHASE
PRICE
MATURITY
DATE
ORIGINAL
COST
PERCENT
YIELD

Goldman Sachs Commercial

Paper

03/14/06
03/27/06
3,376,467.61
4.53
Canadian Imp. Bank CD
03/15/06
04/06/06
7,649,637.83
4.65
Barclays Bank CD
03/20/06
04/20/06
4,860,000
4.70

Bears Stearns Co., Inc.,

\Commercial Paper

03/24/06
04/24/06
7,862,775.24
4.74

Citigroup Funding, Inc.,

Commercial Paper

03/27/06
04/26/06
3,381,561.46
4.75
Barclays Bank CD
03/28/06
05/02/06
7,000,000
4.77
Wells Fargo Bank CD
03/28/06
05/05/06
8,000,000
4.77

UBS Americas, Inc.,

Commercial Paper

03/28/06
04/28/06
6,473,385.21
4.755
Toronto Dominion Bank CD
03/28/06
04/13/06
3,500,000
4.79

Societe Generale North

American Commercial Paper

04/03/06
05/03/06
5,603,753.86
4.80
Dexia Delaware LLC, Commercial Paper
04/07/06
05/08/06
7,505,175.66
4.75
DEPFA Bank CD
04/13/06
05/15/06
3,500,000
4.84
     
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between April 18, 2006, and May 15, 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 March 2006 prepared by Public Financial Management.

Action by the Board - Resolution
CONSENT CALENDAR

     
 
AYES (12):  Directors Cochran, Eddie, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly, Sandoval and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):   None
     
2.
Authorize Filing an Application with the Metropolitan Transportation Commission for FY 06/07 Transportation Development Act and State Transit Assistance Funds to Support Bus, Ferry and Paratransit Services
     
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on the availability of Transportation Development Act (TDA) statewide sales tax revenues and State Transit Assistance Act (STA) gasoline and diesel fuel sales tax revenues.  The report stated that TDA and STA funds are made available annually to the District for operating assistance through the Metropolitan Transportation Commission. The report also stated that the District is eligible to claim $14,991,005 TDA funds and $3,327,647 STA funds in FY 06/07 for various operating purposes.  The report further stated that consistent with past years, the District is eligible to receive 100 percent of the Marin County TDA apportionment, or $10,544,577, of which 36.2%, or $3,817,137, will be credited back to Marin County to support local transit services consistent with Marin Local Transit Services Agreement between this District and the Marin County Transit District.  The report also stated that the District is eligible to receive 25% of the Sonoma County apportionment, or $4,446,428.  The report also provided details regarding the STA funds, including the amounts to be credited back to Marin County for local transit services.  A copy of the 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/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 the General Manager to execute and file an application and related assurances with the Metropolitan Transportation Commission for FY 06/07 Transportation Development Act (TDA) and State Transit Assistance (STA) funds in the amount of $14,991,005 for TDA funds and in the amount of $3,327,647 for STA funds, to support bus, ferry and paratransit services.

Action by Board – Resolution
NON-CONSENT CALENDAR

     
 
AYES (12):  Directors Cochran, Eddie, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly, Sandoval 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 April 28, 2006, for action.]
     
3.
Authorize Award of Contract No. 2006-BT-5-RTCC, Janitorial Supplies, to Clean Source, Inc., and Crest-Talmadge Sales, Inc.
     
 

In a memorandum to Committee, Deputy General Manager/Bus Division Susan Chiaroni, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a report regarding staff’s recommendation for award of Contract No. 2006-BT-5-RTCC, Janitorial Supplies.  The report stated that in an effort to collectively obtain the best pricing, the District, as well as the members of the Regional Transit Coordinating Council of the San Francisco Bay Area (RTCC), actively participates in the joint procurement of various products commonly used by the RTCC member agencies.  The District is the lead agency for Contract No. 2006-BT-5-RTCC, Janitorial Supplies, and the other RTCC members participating in this contract are AC Transit, Central Contra Costa Transit Authority, Eastern Contra Costa Transit Authority, San Joaquin Transit and Vallejo Transit.

The report also stated that Contract No. 2006-BT-5-RTCC was advertised on January 24, 2006.  Based on the estimated annual usage of each participating agency, bidders were asked to provide firm, fixed pricing for the two-year term of the contact, as well as for two additional one-year option periods.  Contract No. 2006-BT-5-RTCC was split into four bid categories of specific types of janitorial supplies, including the following: 1) Category A, Paper Products and Liners; 2) Category B, Soaps and Cleaners; 3) Category C, Miscellaneous Janitorial Supplies; and 4) Category D, Towels.  The report noted that AC Transit was the only RTCC member participating in Category D of this contract.  On March 28, 2006, nine bids were received and publicly opened.  Clean Source, Inc., of San Jose, CA, submitted the lowest bid for Category A and for Category B.  Crest-Talmadge Sales, Inc., of Burlingame, CA, submitted the lowest bid for Category C.

The report further stated that District staff and the Attorney have reviewed the bids and have determined that Clean Source, Inc., and Crest-Talmadge Sales, Inc., have properly submitted all required documents and that their bids are technically responsive to the specifications.

Staff recommends award of Contract No. 2006-BT-5-RTCC to Clean Source, Inc. and Crest-Talmadge Sales, Inc., for the categories noted above, for a two-year term, effective May 8, 2006 through May 7, 2008, with a two one-year options to extend, exercisable by the General Manager or designee.  A copy of the 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/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 approve the following actions relative to Contract No. 2006 BT-5-RTCC, Janitorial Supplies:
     
  a.
Authorize award of Contract No. 2006 BT-5-RTCC, Janitorial Supplies, to Clean Source, Inc., San Jose, CA, as follows:
   
  1. Category A, Paper Products and Liners, in an estimated amount of $92,562.51, for a two-year period, with two one-year options exercisable by the General Manager or designee, effective May 8, 2006 through May 7, 2008, with the understanding that the estimated contract amount for Option Year 1 is $47,841.00 and the estimated contract amount for Option Year 2 is $48,651.80; and,
  2. Category B, Soaps and Cleaners, in an estimated amount of $1,182.75, for a two-year period, with two one-year options exercisable by the General Manager or designee, effective May 8, 2006 through May 7, 2008, with the understanding that the estimated contract amount for Option Year 1 is $609.00 and the estimated contract amount for Option Year 2 is $626.75; and,
     
  b.
Authorize award of Contract No. 2006 BT-5-RTCC, Janitorial Supplies, Category C, Miscellaneous Janitorial Supplies, to Crest-Talmadge Sales, Inc., Burlingame, CA, in the amount of $12,875.38, for a two-year period, with two one-year options exercisable by the General Manager or designee, effective May 8, 2006 through May 7, 2008, with the understanding that the estimated contract amount for Option Year 1 is $7,080.40 and the estimated contract amount for Option 2 is $7,711.92; and,
     
 

with the further understanding that requisite funds are available in the FY 05/06 Bus Division and Bridge Division Operating Budgets and that requisite funds for subsequent years will be budgeted in FY 06/07 and FY 07/08 Bus Division and Bridge Division Operating Budgets.

Action by the Board – Resolution
NON-CONSENT CALENDAR

     
 
AYES (12):  Directors Cochran, Eddie, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly, Sandoval 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 April 28, 2006, for action.]
     
4.
Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Nine Months Ending March 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 nine months ending March 31, 2006.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Joseph Wire highlighted the statistics for southbound Golden Gate Bridge crossings by automobiles with cash and by automobiles using FasTrak™, as shown on page one of the report.  He pointed out that in the month of March 2006, 44.04% of southbound Bridge crossings used cash, while 52.23% used FasTrak™, representing the highest-to-date increase in the use of FasTrak™.  He stated that these statistics are noteworthy, since it shows that the market share of FasTrak™ users on the Bridge is growing significantly.

Action by the Board – None Required

     
5. Review of Financial Statements for Nine Months Ending March 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 Nine Months Ending March 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 Nine Months Ending March 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 9:50 a.m.
     

Respectfully submitted,

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