July 12, 2007
(For Board: August 24, 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, July 12, 2007, at 10:25 a.m., Chair Stroeh presiding.

Committee Members Present (8): Chair Stroeh; Vice Chair Pahre; Directors Boro, Cochran, Eddie, Grosboll and Middlebrook; President Moylan (Ex Officio)
Committee Members Absent (1): Director Reilly
Other Directors Present (3): Directors Kerns, McGlashan and Newhouse Segal

Committee of the Whole Members Present (11): Directors Cochran, Eddie, Grosboll, Kerns, McGlashan, Middlebrook, Newhouse Segal, Pahre and Stroeh; First Vice President Boro; President Moylan
Committee of the Whole Members Absent (8): Directors Brown, Dufty, Hernández, Martini, McGoldrick, Reilly and Sandoval; Second Vice President Ammiano

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; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; Information Systems Director Robert Haar; Planning Director Alan R. Zahradnik; Capital and Grant Programs Manager Gayle Prior; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: Grace Hess, Litigation Supervisor, John Glenn Adjusters & Administrators, Inc.

 

     
1.

Authorize Execution of a Master Agreement with the State of California, Department of Transportation for State-Funded Transit Projects

In a memorandum to Committee, Capital and Grant Programs Manager Gayle S. Prior, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to authorize entering into a Master Agreement with the State of California, Department of Transportation (Caltrans) for state-funded transit projects.

The report stated that Caltrans administers financial assistance for various state programs, including the General Fund, and the State Transportation Improvement Program, as well as for other state funding sources. The District is required to execute a Master Agreement with Caltrans agreeing to the manner in which state-funded transit projects will be administered and maintained. This Agreement is amended through execution of Program Supplements which contain project-specific information each time state funds are made available to the District through Caltrans. Staff and the Attorney have reviewed the Master Agreement and find it in keeping with District practices for the management and maintenance of state-funded transit projects. There is no fiscal impact associated with this item. 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 MIDDLEBROOK/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 authorize execution of a Master Agreement by and between the Golden Gate Bridge, Highway and Transportation District (District) and the State of California, Department of Transportation, for state-funded transit projects; and, authorizes the President of the Board of Directors to execute said Agreement on behalf of the District.

Action by the Board – Resolution
NON-CONSENT CALENDAR

AYES (11): Directors Cochran, Eddie, Grosboll, Kerns, McGlashan, Middlebrook, Newhouse Segal, Pahre and Stroeh; First Vice President Boro; President Moylan
NOES (0): None

     
2.

Authorize Execution of an Agreement with the County of Marin for Grant Funds Related to Improved Signage at the San Rafael Transit Center

In a memorandum to Committee, Capital and Grant Programs Manager Gayle S. Prior, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to authorize execution of an Agreement with the County of Marin for Nonmotorized Transportation Pilot Program (NTPP) funds for improved signage at the San Rafael Transit Center (SRTC).


The report stated that the purpose of the NTPP, a component of the 2005 federal transportation bill SAFETEA-LU, is to demonstrate the extent to which bicycling and walking can carry a significant part of the transportation load. The report also stated that four communities nationwide were selected as recipients of NTPP funds, including the County of Marin, which received $25 million. On April 17, 2007, the Marin County Board of Supervisors approved a list of projects and programs that will be funded under the NTPP, allocating $100,000 for improved signage at the SRTC. NTPP funds will be administered by the County of Marin with the District being responsible for delivery of the project, including compliance with federal-aid processes.

The report further stated that the SRTC project includes passenger information enhancement recommendations addressed in the Metropolitan Transportation Commission’s (MTC) Transit Connectivity Plan. The goals of this project include improved wayfinding and regional transit information displays, along with maps to local shopping and restaurants. The design of the passenger information enhancements will begin in late 2007/early 2008, with installation in late 2008/early 2009.

The report further stated that there is no fiscal impact associated with this item. The SRTC project is included in the FY 07/08 Bus Transit Division Capital Budget and is 100% grant funded. 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 EDDIE/MOYLAN 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 execution of an Agreement by and between the Golden Gate Bridge, Highway and Transportation District (District) and the County of Marin for Nonmotorized Transportation Pilot Program (NTPP) funds related to improved signage at the San Rafael Transit Center; and, authorizes the General Manager to execute said Agreement on behalf of the District.


Action by the Board – Resolution
NON-CONSENT CALENDAR

AYES (11): Directors Cochran, Eddie, Grosboll, Kerns, McGlashan, Middlebrook, Newhouse Segal, Pahre and Stroeh; First Vice President Boro; President Moylan
NOES (0): None

     
3.

Authorize Execution of an Amendment to the Professional Services Agreement with SunGard Bi Tech, Inc., Relative to Request for Proposals (RFP) No. 2003 D-1, Financial Management System and Other Related Items, to Provide Host Servers Used for IFAS and Spear Technology Applications

In a memorandum to Committee, Director of Information Systems Robert Haar, Deputy General Manager, Administration and Development Teri Mantony and General Manager Celia Kupersmith reported on staff’s recommendation to approve an amendment to the Professional Services Agreement relative to RFP No. 2003-D-1, Financial Management System and Other Related Items, with Sungard Bi-Tech, Inc., to provide host servers at their centralized facilities in Chico, CA, used for the Integrated Fund Accounting System (IFAS) and Spear technology applications regarding to the District’s Financial Management Information System (FMIS).

The report stated that the Board of Directors, by Resolution No. 2003-106 at its meeting of October 10, 2003, authorized execution of Professional Service Agreements (Agreement) with SunGard Bi-Tech (SBI) and Spear Technologies, Inc. (Spear), to provide system software to replace the District’s outmoded FMIS, and for the purchase and installation of a variety of servers at the District to support these applications. (SBI provided IFAS software and Spear provided Spear software). SBI currently provides support services remotely, at an annual cost of $117,960, for the UNIX system administration, as well as for some data base administration functions. Since these services are provided remotely from their Chico, CA, location, SBI calls these Remote Services Provider (RSP) services. This type of service cannot be provided in-house due to the detailed technical knowledge that is needed with the IFAS application.

The report also stated that the District’s existing servers, which were purchased at the time of the initial implementation of the FMIS improvement project are almost at maximum capacity, and the District will need larger capacity servers to accommodate additional modules in the near future. Staff has determined that the best solution for this limited server capacity is to amend the Agreement with SBI to host IFAS and Spear servers at their centralized facilities in Chico, where SBI would also provide combined server and application support, in an arrangement known as Application Service Provider (ASP) services.

The report further stated that staff recommends execution of an amendment to the Agreement with SBI to expand SBI’s services from the current RSP function to an ASP function. The report explained the benefits of utilizing SBI facilities for the IFAS and Spear servers, noting that this new arrangement will reduce the District’s technology costs. Once the ASP arrangement is implemented, the existing IFAS and Spear servers at the District can be recycled for other applications.

The report further stated that the cost associated with this amendment totals $312,320 in the FY 07/08 District Division Operating Budget, which amount includes an annual cost of $278,400, a one-time set up charge of $20,000 and an annual 5 percent contingency of $13,920. Staff has confirmed that the proposed compensation for these services is fair and reasonable. A copy of the report is available in the Office of the District Secretary and on the District’s web site.


At the meeting, Ms. Mantony summarized the staff report, stating that staff performed extensive research and analysis to determine its feasibility, as well as interviewed several of SBI’s customers to determine their level of satisfaction with SBI hosting their respective servers. Ms. Mantony also stated that this is also an opportunity to increase disaster recovery capability which is one of the key reasons for presenting this recommendation. She noted that the District will also benefit from the fact that SBI’s sister company, SunGard Data Services, is the world’s largest Disaster Recovery vendor. Ms. Mantony further stated that SBI would provide the District with the capacity and the expertise to perform testing and other related services.

Discussion ensued, including the following:

  • Director Cochran inquired as to whether the District would issue a Request for Proposals when the Agreement with SBI expires. In response, Ms. Mantony stated that SBI is a sole source provider of these FMIS and that the District plans to continue to engage SBI for these services because of their expertise in the field.
  • Director Boro made the following comments and inquiries:
    • He inquired as to the specifics of the current arrangement with SBI for RSP services. In response, Ms. Mantony stated that SBI currently provides remote services for the District’s complex applications and programming. Ms. Mantony noted that, with approval of this recommendation, the responsibility for the servers will relocate to SBI’s facilities in Chico.
    • He inquired as to who currently maintains the servers. In response, Ms. Mantony stated that the maintenance is performed by District staff.
    • He inquired as to whether the personnel that perform the work would remain on staff at the District. In response, Ms. Kupersmith stated that the District would continue to employ the staff person performing this work because there are still servers at District locations to be maintained. Ms. Kupersmith also stated that SBI offers greater application familiarity and depth of staff than the District could replicate in-house for the same cost. Ms. Mantony clarified that the District has 86 servers running at the District and that 27 are associated with the IFAS and Spear applications. Ms. Mantony noted that the recommended ratio for maintenance is 30 servers to 1 staff member and that the District is operating on a ratio of 87 to 1. Ms. Mantony also noted that the Board approved the addition of a Systems Administrator position, which will improve the Information Systems Department’s ability to expand in other areas and do a better job at providing service.
    • He inquired as to which applications are proposed in the relocation. In response, Ms. Mantony stated that those applications include the financial management information system (IFAS), along with the maintenance management information system (Spear), with plans to expand the Spear host server responsibility sometime soon.
    • He inquired whether security arrangements have been made with SBI regarding protection of the database, specifically those related to payroll records, and if the District has received a satisfactory guarantee that SBI has enough service capability that will enable the District to remain a high priority. In response, Ms. Mantony stated that the District has worked regularly with SBI for the past four years and has been pleased with the relationship and the service. Ms. Mantony also stated that staff has performed due diligence in the research and analysis of this outsourcing, and is confident with SBI’s security arrangements.
    • He commented that, in his opinion, outsourcing payroll records can be risky in regards to confidentiality and could have a negative impact on the District; however, he expressed his support for staff’s recommendation.
  • Director Stroeh made the following comments: He commented that his firm has outsourced its payroll for some time, with very positive results in regards to security and confidentiality. He commended staff for their extensive work that was required for the FMIS project, along with the successful implementation.
  • Director Middlebrook expressed support for the recommendation and directed staff to report back on the progress in six months.
  • Director Grosboll inquired as to whether staff had plans to outsource other applications. In response, Ms. Mantony stated that staff does not plan to outsource any additional applications at this time.

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/MCGLASHAN 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 execution of an amendment to the Professional Services Agreement with SunGard Bi-Tech, Inc., Chico, CA, relative to Request for Proposals No. 2003 D-1, Financial Management System and Other Related Items, in the amount of $312,320, including an annual contract amount of $278,400, a one-time set-up charge of $20,000 and an annual 5 percent contingency of $13,920, to provide host servers at their centralized facilities located in Chico used for the Integrated Fund Accounting System (IFAS) and Spear technology applications relative to the District’s Financial Management Information System; with the understanding that requisite funds (100% District) are available in the FY 07/08 District Division Operating Budget and that requisite funds will be included in the District Division Operating Budget for the subsequent fiscal years.

Action by Board – Resolution
NON-CONSENT CALENDAR

AYES (11): Directors Cochran, Eddie, Grosboll, Kerns, McGlashan, Middlebrook, Newhouse Segal, Pahre and Stroeh; First Vice President Boro; President Moylan
NOES (0): None

     
4.

Closed Session

Attorney David Miller, at the request of Chair Stroeh, stated that the Committee would convene in closed session to discuss a matter of pending litigation listed on the agenda as Item No. 5.a.1., Christopher Mosher vs. Golden Gate Bridge, Highway and Transportation District (District).

After closed session, Chair Stroeh called the meeting to order in open session with a quorum present. Attorney Miller reported that the Committee met in closed session, as permitted by the Brown Act, to discuss one item of pending litigation, as listed above. Mr. Miller stated that the Committee provided settlement authority for disposition of this matter.

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 10:50 a.m.

     

Respectfully submitted,

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