September 21, 2006
(For Board: October 13, 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, September 21, 2006, at 10:25 a.m., Chair Stroeh presiding.

Committee Members Present (6): Chair Stroeh; Directors Cochran, Eddie, Grosboll, and Reilly; President Middlebrook (Ex Officio)
Committee Members Absent (3): Vice Chair Pahre; Directors Boro and Murray
Other Directors Present (4): Directors Hernández, Martini, Moylan and Newhouse Segal

Committee of the Whole Members Present (10): Directors Cochran, Eddie, Grosboll, Hernández, Martini, Newhouse Segal, Reilly and Stroeh; First Vice President Moylan; President Middlebrook
Committee of the Whole Members Absent (9): Directors Ammiano, Brown, Dufty, Kerns, McGoldrick, Murray, Pahre and Sandoval; Second Vice President Boro

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/Bus Division Susan C. Chiaroni; Deputy General Manager/Ferry Division James P. Swindler; Budget and Programs Analysis Manager Jennifer Mennucci; Assistant Clerk of the Board Karen B. Engbretson; Executive Assistant to the General Manager Amorette Ko

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 disbursements and investments. A copy of the 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 August 1, 2006, through August 31, 2006, totaling $128,738.78;
 
 
b.
Ratify investments made by the Auditor-Controller during the period August 15, 2006, through September 11, 2006, as follows;
     
SECURITY

PURCHASE

DATE

MATURITY

DATE

ORIGINAL

COST

PERCENT

YIELD

FNMA Notes (Callable)
08/18/06
08/25/08
5,311,534.88
5.23
FNMA Notes
08/21/06
01/15/08
10,032,200.00
5.25

UBS Finance Delaware

Commercial Paper

08/28/06
10/05/06
7,655,340.25
5.28

UBS Finance Delaware

Commercial Paper

09/05/06
10/02/06
4,967,363.69
5.25

CBA (DE) Finance Commercial

Paper

09/07/06
10/05/06
2,978,810.01
5.26

Societe Generale NA

Commercial Paper

09/11/06
10/02/06
10,092,057.36
5.26
     
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between September 12, 2006, and October 16, 2006, 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 August 2006 prepared by Public Financial Management.

Action by the Board - Resolution
CONSENT CALENDAR

     
 
AYES (10): Directors Cochran, Eddie, Grosboll, Hernández, Martini, Newhouse Segal, Reilly and Stroeh; First Vice President Moylan; President Middlebrook
NOES (0):  None
     
2.
Report on Discontinuing the Use of Personal Checks for District Products
     
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided an informational report regarding the adoption of an internal District-wide policy of no longer accepting personal checks as payment for most District products, to include Ride Value Ticket books, TransLink® E-cash and Special Events tickets, as well as items at the Gift Center and Bridge Café.  The report stated that with the implementation of this policy, the District’s policy regarding personal checks would conform to the TransLink® Consortium’s business rules, as well as provide a consistent policy throughout the District.

The report described the implementation plan for the policy to no longer accept personal checks, as follows:
  1.
Announcements to the public will be made on the District’s web site and signage will be posted for customers at the District’s internal sales locations, including a message that effective January 1, 2007, no personal checks will be accepted for Ride Value Ticket books, TransLink® e-cash and Special Events tickets;
  2.

Patrons will be informed as they sign up for TransLink® cards that no personal checks will be accepted as a form of payment for TransLink® e-cash; and,

  3.
Signage will be posted at the Gift Center and Bridge Café that no personal checks  will be accepted for purchases.
     
 

The report also stated that District staff is preparing to finalize training materials and business rules for the TransLink® system, in accordance with rules agreed to by the TransLink® Consortium to disallow personal checks for e-cash payment on the TransLink card. By formalizing such a policy, as described above, administrative and banking cost savings could be realized. In addition, the policy could reduce the liability of outstanding check payments and the loss of revenue.

The report noted that cashier checks, Commuter Checks, credit cards and cash will still be valid forms of payment for District products. Third party vendors that sell Ride Value ticket books may choose to accept personal checks at their locations depending on their individual policies. Some minor internal programs that may require a personal check will still be accepted (i.e., employee reimbursements, public record copying fees).

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:

     
 
  • Director Grosboll inquired as to whether a policy of discontinuing personal checks would result in an increase in costs to the District in the form of credit card fees.  In response, Mr. Wire stated that the policy would be revenue neutral, with no anticipated increase in costs.
     
 
  • President Middlebrook inquired regarding the policy of not accepting checks at the Gift Center.  In response, Mr. Wire stated that such a practice has been in place at the Gift Center for many years, and formalizing such a policy will make it more clear and consistent for the employees and the public.

Action by the Board – None Required

     
3.
Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Two Months Ending August 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 two months ending August 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

     
4.

Review of Financial Statements for Two Months Ending August 31, 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 Two Months Ending August 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

     
  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 Two Months Ending August 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

     
5. Public Comment
     
 

There was no public comment.

     
6. 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