April 26, 2007
(For Board: May 11, 2007)

 

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, April 26, 2007, at 10:20 a.m., Chair Stroeh presiding.

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

Committee of the Whole Members Present (12): Directors Cochran, Eddie, Grosboll, Hernández, Martini, Middlebrook, Newhouse Segal, Reilly and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan
Committee of the Whole Members Absent (7): Directors Brown, Dufty, Kerns, McGlashan, McGoldrick, Pahre 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; Executive Assistant to the General Manager Amorette Ko; 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. The report also included a copy of the District’s Investment Report from PFM Asset Management LLC (PFM). A copy of the staff report, with attachments, 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 March 1, 2007, through March 31, 2007, totaling $89,657.00;
   
  b.
Ratify investments made by the Auditor-Controller during the period March 13, 2007, through April 16, 2007, as follows;
     
SECURITY

PURCHASE

DATE

MATURITY

DATE

ORIGINAL

COST

PERCENT

YIELD

Deutsche Bank, LLC      

Certificate of Deposit   
03/21/07
04/20/07
10,133,000.00
5.27

Svenska Handelsbanken

Certificate of Deposit
04/02/07
05/02/07
8,868,000.00
5.28

Dexia Delaware, LLC

Commercial Paper
04/02/07
05/07/07
5,894,700.21
5.29

Societe Generale NA

Commercial Paper
04/16/07
05/07/07
7,916,680.69
5.25
     
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between April 17, 2007, and May 14, 2007, 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 March 2007 prepared by PFM.

Action by the Board - Resolution
CONSENT CALENDAR

     
 
AYES (12): Directors Cochran, Eddie, Grosboll, Hernández, Martini, Middlebrook, Newhouse Segal; Reilly and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan
NOES (0): None
     
2.

Authorize a Budget Increase and a Budget Transfer Relative to Amendments to the Interagency Agreement with the State of California, Division of Mines and Geology to Install a Seismic Instrumentation System on the Golden Gate Bridge for Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures; and, to Install a Wind Monitoring System on the Golden Gate Bridge

This item was referred to the Finance-Auditing Committee from the Building and Operating Committee meeting of April 26, 2007, for concurrence for a budget increase and a budget transfer. In a report to Committee, Deputy District Engineer Ewa Bauer, District Engineer Denis Mulligan and General Manager Celia Kupersmith provided staff’s recommendation to approve actions relative to amendments to the Interagency Agreement with the State of California, Division of Mines and Geology, Strong Motion Instrumentation Program (SMIP). The report stated that a budget increase in the amount of $35,000 is necessary in the FY 06/07 Bridge Capital Budget for the SMIP services associated with installation of the seismic instrumentation system relative to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures. The report noted that sufficient federal funds have been allocated for Phase II and are available to finance this increase. The report also stated that a budget transfer in the amount of $20,000 is necessary from the FY 06/07 District Division Operating Budget to the FY 06/07 Bridge Division Capital Budget for the cost of the wind instrumentation. The report also noted that sufficient funds are available in the FY 06/07 District Division Operating Budget to finance this 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 MIDDLEBROOK/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 a budget increase in the amount of $35,000 in the FY 06/07 Bridge Capital Budget for Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures, to be funded with federal grant funds programmed for the Seismic Retrofit Project; and, authorize a budget transfer in the amount of $20,000 from the FY 06/07 District Division Operating Budget to the FY 06/07 Bridge Division Capital Budget for the cost of the wind instrumentation.

Action by the Board
Refer to the Building and Operating Committee Meeting of April 26, 2007

     
 
AYES (12): Directors Cochran, Eddie, Grosboll, Hernández, Martini, Middlebrook, Newhouse Segal, Reilly and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan
NOES (0): None
     
3.

Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Nine Months Ending March 31, 2007

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a schedule comparing categories of Bridge traffic, as well as a monthly review of Bridge traffic and tolls and transit patronage and fares, for nine months ending March 31, 2007. A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Mr. Wire provided additional information requested by the Committee at its March 22, 2007, meeting relative to this Agenda item, regarding the discrepancy between ferry patronages compared to ferry fares. Mr. Wire reported that the actual to budget showed that the ferry patronage was 14.4 percent higher, yet the fares from said patronage increased only 0.5 percent higher. He stated that staff found two reasons for this occurrence: 1) on the six “Spare the Air” days, the Golden Gate Ferry experienced a 350% increase in ridership, including nearly 25,000 passengers on July 21, 2006, and the District was only compensated for the average daily number of 5,000 passengers; and, 2) during the budget modeling process, staff projected an increase in ferry ridership at the cash price fare and staff is evaluating whether or not passengers are utilizing either the discount ticket book or TransLink®. He noted that the cash price fare is 35% higher than the discount ticket book price fare or the TransLink® price fare. He also noted that approximately one-third of ferry passengers are using TransLink®. In conclusion, Mr. Wire stated that the actual to actual figures show that ferry ridership has increased by approximately 11% and that ferry fare revenue has increased by approximately 10%.

Discussion ensued, including the following:

  • Director Grosboll made the following inquiries:
    • He inquired as to which period the reimbursement for the average ferry patronage is based upon. In response, Mr. Wire stated that the time period is negotiated between the transit operators and the Metropolitan Transportation Commission (MTC) each year. Ms. Kupersmith elaborated that the idea behind “Spare the Air” days is to encourage people to take transit instead of driving and that MTC reimburses the transit operators for the amount of passengers they would carry on a normal day.
    • He inquired regarding the percentage of automobiles with FasTrak®, compared with the percentage of automobiles with cash, crossing the Golden Gate Bridge southbound. He also inquired as to whether the District is working to increase the percentage of automobiles with FasTrak®. In response, Mr. Wire explained that the Golden Gate Bridge has the highest overall percentage of FasTrak® users in the Bay Area, approximately 20 percentage points ahead of other FasTrak® locations operated by the Bay Area Toll Authority (BATA). He noted that during the weekday morning southbound commute period, there is an average of more than 70 percent automobiles with FasTrak® crossing the Golden Gate Bridge. He further stated that the District is working cooperatively with BATA to expand the overall market penetration of FasTrak® in the Bay Area, particularly with weekend users and reverse commuters. He also noted that in the past several months FasTrak® tags have been made available at Costco and Safeway stores. As a result of the marketing efforts, there has been an approximate 2% increase in FasTrak® usage each of the past two years.
    • He inquired as to whether FasTrak® tags are sold at the Golden Gate Bridge Gift Center. In response, Ms. Kupersmith explained that the FasTrak® tags are sold as a package, with pre-paid tolls included in the price of the tag. She stated that there is nothing in the agreements with Costco and Safeway that would preclude the District from making the tags available at the Gift Center, and stated that staff would explore that idea.
    • He inquired as to whether the District would be a position to add more ferries during the morning commute if demand for ferry service increased significantly on future “Spare the Air” days. In response, Ms. Kupersmith explained that the overcrowding problem experienced during the 2006 “Spare the Air” days had occurred during the afternoon, rather than during the morning commutes.
  • Director Middlebrook inquired regarding possible changes in the “Spare the Air” day program in 2007, based on experiences with the “Spare the Air” days in 2006. In response, Ms. Kupersmith stated that because most overcrowding had occurred during the afternoon commute period, particularly on BART and the ferries, a change was proposed for the 2007 “Spare the Air” day program to allow free transit rides only until 1:00 p.m. in the afternoon. She stated that hopefully this compromise will encourage more commuters while still encouraging day-trippers to enjoy transit on “Spare the Air” days.

Action by the Board – None Required

     
4.
Review of Financial Statements for Nine Months Ending March 31, 2007
     
  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 31, 2007. 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, 2007. 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.

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 provided a report summarizing budget adjustments and budget transfers authorized by the Board of Directors during the three-month period from January 1, 2007, through March 31, 2007. A copy of the report, including attached charts outlining applicable budget adjustments and transfers, is available in the Office of the District Secretary and on the District’s web site.

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 report summarizing all contracts and change orders executed under the General Manager’s procurement authority, as set forth in the Rules of the Board, during the three-month period from January 1, 2007 through March 31, 2007 of FY 06/07. A copy of the report, including attached charts outlining applicable contracts and change orders, is available in the Office of the District Secretary and on the District’s web site.

Action by the Board – None Required

     
7.

Public Comment

There was no public comment.

     
8.

Adjournment

All business having been concluded, the meeting was adjourned at 10:35 a.m.

   

 

Respectfully submitted,

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