December 12, 2008

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, December 12, 2008, at 11:10 a.m., Acting Chair Pahre presiding.

Committee Members Present (7): Vice Chair Pahre; Directors Boro, Cochran, Eddie, Grosboll and Reilly; President Moylan (Ex Officio)
Committee Members Absent (2): Chair Stroeh; Director Sobel
Other Directors Present (3): Directors Hernández, Kerns and McGlashan

Committee of the Whole Members Present (10): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, McGlashan, Pahre and Reilly; First Vice President Boro; President Moylan
Committee of the Whole Members Absent (8): Directors Brown, Dufty, McGoldrick, Newhouse Segal, Sanders, Sandoval, Sobel and Stroeh

[Note: On this date, there was one vacancy on the Board of Directors.]

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 Teri W. Mantony; Deputy General Manager, Ferry Division James P. Swindler; Public Affairs Director Mary C. Currie; Deputy District Engineer Ewa Z. Bauer; 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. 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 was not present at the meeting. A copy of her written report is included in the staff report.

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 November 1, 2008, through November 30, 2008, totaling $57,290.00;
     
  b. Ratify investments made by the Auditor-Controller during the period November 11, 2008, through December 8, 2008, as follows;
     
Security

Purchase

Date

Maturity

Date

Original

Cost

Percent

Yield

GE Capital TLGP Commercial Paper
11/13/08
02/11/09
5,114,525.63
1.76
CITIGROUP Funding, Inc. Commercial Paper
11/14/08
01/13/09
7,225,833.34
2.01
Toyota Motor Credit Corp Commercial Paper
11/14/08
01/13/09
2,132,404.75
1.86
Societe Generale NA Commercial Paper
11/24/08
01/29/09
6,302,309.06
2.06
Morgan Stanley (FDIC) Global Notes
12/02/08
12/01/11
8,697,042.00
3.26
Calyon North America, Inc. Commercial Paper
12/04/08
03/04/09
4,970,937.50
2.34
Toyota Motor Credit Commercial Paper
12/04/08
03/04/09
3,505,171.88
2.26
         
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between December 9, 2008, and January 12, 2009, 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 November 2008 prepared by PFM.

Action by the Board at its meeting of January 9, 2009 – Resolution
CONSENT CALENDAR

         
 
AYES (10): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, McGlashan, Pahre and Reilly; First Vice President Boro; President Moylan
NOES (0): None
         
2.

Approve Actions Relative to the FY 08/09 California Transit Security Assistance Grant Program

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 all actions necessary relative to the FY 08/09 California Transit Assistance Grant Program administered by the Governor’s Office of Homeland Security. The report stated that in November 2006, California voters approved Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006. This bond provides almost $20 billion in state general obligation bonds for approximately 14 different categories of transportation projects. One bond category, the Transit System Safety, Security and Disaster Response program (Transit Assistance Funds), will be administered by the Governor’s Office of Homeland Security (OHS). Funds from this program are available to State Transit Assistance (STA) eligible agencies, including the District, and the program is distributed by the same formula as are STA funds.

The report also stated that as a part of the October 15, 2008, FY 08/09 California Transit Security Grant Program, California Transit Assistance Fund, Program Guidelines and Application Kit issued by OHS, project applicants are required to adopt a resolution appointing individuals or positions to act on behalf of the applicant and its governing body and to provide related certifications and assurances. The report noted that Transit Assistance Funds in the amount of $802,488 will be available to the District to support the Advanced Communications and Information Systems project.

The report further stated that staff recommends that all necessary actions related to the above-described grant program be authorized, in order to secure Transit Assistance funds to support the District’s transit security capital projects. 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, Celia Kupersmith noted that the disbursement of funds from the FY 08/09 California Transit Assistance Grant Program was announced at a press conference held at the Golden Gate Bridge on June 12, 2008.

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

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors authorize all necessary actions related to filing the grant applications and agreements for the FY 08/09 Transit System Safety, Security, and Disaster Response Program funds administered by the Governor’s Office of Homeland Security, to support the District’s transit security capital projects.

Action by the Board - Resolution
NON-CONSENT CALENDAR

AYES (10): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, McGlashan, Pahre and Reilly; First Vice President Boro; President Moylan
NOES (0): None

         
3.

Approve Actions Relative to the Grant Agreement with the California Coastal Conservancy for Grant Funds to Support the Toll Plaza East Parking Lot Restroom Facility Improvements

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 an Agreement with the California Coastal Conservancy (Conservancy) for grant funds to support the design of the Toll Plaza East Parking Lot Restroom Facility Improvements project.

The report stated that pursuant to Chapter 4.5 of Division 21 of the California Public Resources Code, the Conservancy has granted the District $500,000 to support design work associated with improvements to the restrooms located in the Golden Gate Bridge Toll Plaza east parking lot. The Agreement between the District and the Conservancy requires that the Board of Directors adopt a resolution authorizing the execution of the agreement and approving its terms and conditions. The term of the Agreement shall run from its effective date through December 31, 2010, and all design work shall be completed no later than June 3, 2010. The report further stated that staff recommends that all necessary actions related to the above-described grant program be authorized, in order to secure Conservancy grant funds to support design of the Toll Plaza East Parking Lot Restroom Facility Improvements project. 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, Celia Kupersmith briefly described the background of the Conservancy’s Commemorative Golden Gate Bridge License Plate Program, noting that although the Conservancy has not been selling as many of the commemorative license plates at it had hoped, the District will still receive the $500,000 in grant funds per the agreement. She stated that the District has committed to help publicize the Commemorative Golden Gate Bridge License Plate Program on behalf of the Conservancy through Golden Gate Transit bus side advertisements. Ms. Kupersmith commended Deputy General Manager/Bridge Division Kary Witt and Capital and Grant Programs Director Gayle Prior for their diligent work in obtaining these non-traditional grant funds through the Conservancy.

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

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors authorize entering into an Agreement with the California Coastal Conservancy for grant funds to support the design of the Toll Plaza East Parking Lot Restroom Facility Improvements project; and, authorize the General Manager to execute said Agreement on behalf of the District.

Action by the Board - Resolution
NON-CONSENT CALENDAR

AYES (10): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, McGlashan, Pahre and Reilly; First Vice President Boro; President Moylan
NOES (0): None

         
4.

Authorize Continued Funding for the Annual Recurring Maintenance and Support for the IFAS Financial/Human Resource/Payroll System with SunGard Public Sector Relative to the Agreement for Request for Proposal No. 2003-D-1, Financial Management System and Other Related Items

General Manager Celia Kupersmith advised that this item was pulled from the agenda and will be postponed to the January 9, 2009, meeting of the Finance-Auditing Committee.

         
5. Review of Comprehensive Annual Financial Reports as Follows:
  a. Fiscal Year Ended June 30, 2008
  b. Fiscal Year Ended June 30, 2007
         
 

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided copies of the Comprehensive Annual Financial Reports for the fiscal years ending June 30, 2008, and June 30, 2007. The Comprehensive Annual Financial Reports included the following key sections:

  a.
Introductory Section, including Letter of Transmittal;
  b.
Financial Section, including the independent auditor’s report and audited financial statements;
  c.
Statistical Section, including financial trends and other economic information; and,
  d.
Single Audit Section, including the Schedule of Federal Awards (for fiscal year ending June 30, 2008, only).
         
 

The report noted that the District submitted the Comprehensive Annual Financial Reports for the fiscal year ending June 30, 2007, to the Government Finance Officers Association for the first time last year. The District was subsequently awarded the prestigious Certificate of Achievement Award for Excellence in Financial Reporting from the Government Finance Officers Association. The District will submit the Comprehensive Annual Financial Reports for the fiscal year ending June 30, 2008, for award consideration as well.


Action by the Board – None Required

         
6.

Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Five Months Ending November 30, 2008

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 five months ending November 30, 2008. 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

         
7. Review of Financial Statements for Five Months Ending November 30, 2008
         
  a.

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 Five Months Ending November 30, 2008. 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 Five Months Ending November 30, 2008. 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 11:20 a.m.

   

 

Respectfully submitted,

/s/ Barbara L. Pahre, Acting Chair
Finance-Auditing Committee