September 24, 2009

 

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 24, 2009, at 10:00 a.m., Chair Stroeh presiding.

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

Committee of the Whole Members Present (10): Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Snyder and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro
Committee of the Whole Members Absent (9): Brown, Campos, Chu, Dufty, Kerns, McGlashan, Moylan, Pahre and Sanders

Staff Present: District Engineer and Acting General Manager Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Attorney Madeline Chun; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Administration and Development Z. Wayne Johnson; Marine Projects Manager/Ferry Division and Acting Deputy General Manager/Ferry Division Christian Stark; Acting Executive Assistant to the General Manager Sonia Pedlar; Assistant Clerk of the Board Lona Franklin

Visitors Present: Nancy Jones, PFM Asset Management, LLC

     
1.

Ratification of Previous 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.

At the meeting, Nancy Jones described the latest economic news and current interest rates for the District’s portfolio. Ms. Jones stated that the Federal Reserve Board (Fed) has given some indications that the country may be coming out of the recession. However, the unemployment rate is still the highest it has been in 25 years and retail sales have not improved. The Fed has signaled its intention to keep interest rates low. She explained that the yield curve, which shows the difference in yield between the two-year and the ten-year Treasury yields, is the steepest it has ever been in the history of recording rates. For the District’s portfolio, securities in the five-year range would be expected to earn 3% and hold the yield curve.

Ms. Jones reported that the District has about $35 million that is earning 5% and an equal amount earning below 1%. The latter will be available to purchase longer term securities when rates increase. She explained that callable securities were being purchased on behalf of the District, and that these do best when interest rates hold steady, which has been the case for the past year.

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. The Board of Directors has no commitments and/or expenditures to ratify for the period July 1, 2009, through August 31, 2009;
     
  b. The Board of Directors ratifies investments made during the period July 14, 2009, through September 14, 2009, as follows:
     
Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
FFCB Notes (Callable)
07/14/09
7/14/14
5,118,000.00
3.23
BNP Paribas Financial, Inc.
Commercial Paper
0817/09
8/20/09
1,219,984.75
0.15
FHLMC Notes (Callable)
0817/09
08/20/14
4,995,000.00
3.37
BNP Paribas Financial, Inc.
Commercial Paper
09/03/09
10/05/09
3,549,400.44
0.19
Societe Generale NA Commercial Paper
09/08/09
10/05/09
4,999,175.00
0.22
       
 

c.

Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between August 4, 2009, and October 12, 2009, as well as the investment of all other funds not required to cover expenditures which may become available;
       
  d.

Accept the Investment Report for July and August 2009 prepared by PFM.

Action by the Board at its meeting of September 25, 2009 – Resolution
CONSENT CALENDAR

       
 

AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre

       
2.

Authorize a Budget Increase in the FY 09/10 Ferry Transit Division Capital Budget Relative to Request for Proposals No. 2010-FT-3, Services for Modifications and Improvements to the Larkspur, San Francisco and Sausalito Ferry Terminal Facilities, with Moffatt & Nichol.

In a report to Committee, District Engineer Denis Mulligan, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation for the Committee’s concurrence with a budget increase relative to Request for Proposals No. 2010-FT-3, Conceptual Designs, Environmental Studies and Engineering Services for Modifications and Improvements to the Larkspur, San Francisco and Sausalito Ferry Terminal Facilities, with Moffatt & Nichol. The report provided details regarding the execution of a Professional Services Agreement with Moffatt & Nichol, as well as other related actions. It is recommended that a budget increase in the FY 09/10 Ferry Transit Division Capital Budget, in the amount of $5,844,000.00, be authorized, to be funded with $4,675,200.00 Federal Transit Administration (FTA) grant funds and with $1,168,800.00 from District reserves. 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 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 a budget increase in the FY 09/10 Ferry Transit Division Capital Budget in the amount of $5,844,000.00, relative to the execution of a Professional Services Agreement with Moffatt & Nichol, regarding Request for Proposals No. 2010-FT-3, Conceptual Designs, Environmental Studies and Engineering Services for Modifications and Improvements to the Larkspur, San Francisco and Sausalito Ferry Terminal Facilities.

Action by the Board
Refer to the Building and Operating Committee Meeting of September 24, 2009

AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre

       
3.

Authorize a Budget Increase in the FY 09/10 Ferry Transit Capital Budget Relative to Contract No. IFB No. 2010-FT-10, Installation of New Propulsion System for Re-Powering and Dry-Docking of the M.V. Del Norte, to Ice Floe, LLC, dba Nichols Brothers Boat Builders

In a report to Committee, Deputy General Manager/Ferry Transit Division James Swindler, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation for the Committee’s concurrence with a budget increase in the Ferry Transit Capital Budget relative to Contract No. 2010-FT-10, Installation of New Propulsion System for Re-Powering and Dry-Docking of the M.V. Del Norte. The report provided details regarding Contract No. 2010-FT-10, award of a contract to Ice Floe, LLC, dba Nichols Brothers Boat Builders, as well as other related actions. It is recommended that a budget increase in the FY 09/10 Ferry Transit Division Capital Budget, in the amount of $1,386,000.00, be authorized, to be funded with FTA grant funds (100%). 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 COCHRAN/SOBEL to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors authorize a budget increase in the FY 09/10 Ferry Transit Division Capital Budget in the amount of $1,386,000.00, to be funded with Federal Transit Administration funds (100%), relative to the award of Contract No. 2010-FT-10, Installation of New Propulsion System for Re-Powering and Dry-docking of the M.V. Del Norte.

Action by the Board
Refer to the Building and Operating Committee Meeting of September 24, 2009

AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre

       
4.

Approve Actions Relative to the Execution of a Professional Services Agreement with ICMA Retirement Corporation Regarding Request for Proposals No. 2010-D-1, Deferred Compensation Plan Provider

In a report to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a report on staff’s recommendation to: 1) execute a Professional Services Agreement (PSA) relative to Request for Proposal (RFP) No. 2010-D-1, Deferred Compensation Plan Provider to ICMA Retirement Corporation (ICMA-RC); 2) approve the Plan and Trust Agreement; 3) delegate amendment approval authority to the Auditor-Controller; and, 4) approve the Investment Policy Statement.

The report stated that five proposals were received in response to the District’s RFP seeking a bundled deferred compensation plan that would include recordkeeping, investments, education and administration. The responses were reviewed by an Evaluation Committee who evaluated the proposals on four primary criteria: 1) fund performance; 2) fees and charges; 3) recordkeeping services; and, 4) education services. Because retaining multiple providers would increase costs, the recommendation is for a sole provider. Secondary evaluation of the two top proposals from ICMA-RC and from Nationwide was done, as well as evaluation of both the written proposals and the results of oral interviews. The report stated staff’s recommendation that ICMA-RC be retained. Improved fund performance, reduced fees and expenses, as well as improvement in educational and customer services are expected under the recommended contract.

In addition, Staff recommended approval of the Plan and Trust Agreement, which would delegate authority to the Auditor-Controller, upon review by the District’s legal counsel, to make amendments to the Plan and Trust Agreement to conform to changes in federal statutes and regulations.

Lastly, staff is recommending approval of the Investment Policy Statement which would include delegation of authority to the Auditor-Controller to select the investments offered under the Plan in accordance with the Policy Statement. Changes to the Policy Statement that will have a material effect on the structure of the Plan would require Board review and approval. Annually, the Auditor-Controller would submit a review and report of fund and service provider performance and summarize amendments and/or changes made to the administration of the Plan and Policy Statement.

With approval of this recommendation, staff anticipates that participant net returns would improve and that current participants may save an estimated $108,000.00 annually (or $540,000.00 over five years), as a result of the reduction in expense structure with ICMA-RC as the District’s sole provider. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

During the meeting, Joseph Wire explained that currently, the District has two plans which have been in place since the early 1990’s. One is sponsored by Nationwide and one by ICMA-RC. The District provides staff time to review plans and to administer the plans according to federal law. Employees pay the expenses of the plans. He stated that five areas of achievement were identified: (1) better performance of funds; (2) lower cost for employees; (3) better assessment and customer service; (4) better education; and (5) better administration. The RFP was successful at all of these. He stated that savings from a sole provider are substantial, as well as administration being less complex.

Discussion ensued, including the following comments and inquiries:

  • President Boro inquired as to the procedure required for an employee who is presently a Nationwide client to become an ICMA-RC client. In response, Mr. Wire stated that the transition will take until approximately February 2010. Employees who are currently invested in a particular type of fund would be notified that their investments will move to a similar fund, but they will have an opportunity to decline the choice made by the administrator and substitute their own choice. ICMA-RC has a dedicated transition team which focuses on transitions similar to this proposal.
  • Director Grosboll made the following inquiries:
    • He inquired as to whether employees would have fewer options with a sole provider. Mr. Wire responded that employees will be able to choose from all the asset classes as they do presently, but within each asset class will be fewer funds. This will benefit employees by eliminating poorer performing funds from the list of choices employees must consider.
    • He inquired as to who would select the funds for the District. In response, Mr. Wire stated that ICMA-RC’s choices for the District would be reviewed and selected by District representatives with delegated authority to do so with financial advice from the District’s Deferred Compensation Consultant.
  • Director Sobel noted the report was comprehensive and that significant savings could be realized because of the proposed changes. He inquired as to the educational provisions of the proposal, stating that individuals without a financial background often find it difficult to choose the funds most appropriate to their particular situation and, therefore, the educational component was of paramount importance. In response, Mr. Wire reported that ICMA-RC works only with the public sector and has extensive experience with defined benefit plans and 457 plans. In addition, they are experienced in analyzing multiple benefit situations, such as those of District employees, many of whom will receive both Social Security and CalPers benefits upon retirement, as well as their deferred compensation plans. ICMA-RC can provide advice regarding the best way to achieve goals and the appropriate amount of risk. He stated further that the educational program will include free reports, with 50 days per year that representatives would be available personally on site, and online services. In addition, ICMA-RC’s representative assigned to the District has served the District since 1993 and has established long-term relationships with many employees. Free educational resources will be available on the internet; managed investments, on a fee basis, will also be available.

In conclusion, Mr. Wire reported on the District’s Plan and Trust Agreement, stating that some authority would be delegated to the Auditor-Controller with review by legal counsel. He stated that the Trust Plan Agreement sets up the legal framework within which the Trust is to be operated, making certain that all statutes and laws are adhered to. Delegation of authority is intended to empower the Auditor-Controller and legal counsel to make necessary amendments to the Plan and Trust Agreement as a result of changes to IRS regulations. These changes will be reported annually to the Board. If a material change was required, then the Board’s approval would be sought.

Mr. Wire continued, reporting on the Investment Policy Statement. The Investment Policy Statement sets out the investment asset class selection, and the roles of the Board, Auditor-Controller and service providers. It also covers how funds will be selected, reviewed and evaluated. It delegates minor changes to the Auditor-Controller and legal counsel, with such changes to be reported annually to the Board.

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

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors approve actions relative to Request for Proposals No. 2010-D-1, Deferred Compensation Plan Provider, as follows:

  a. Authorize execution of a Professional Services Agreement with ICMA Retirement Corporation, Washington, D.C., for a five-year term, with two one-year options, to provide bundled plan services for the District’s IRC Section 457 Deferred Compensation Plan;
  b. Approve the District’s Plan and Trust Agreement and delegated Board authority to the Auditor-Controller to approve amendments to the Plan and Trust Agreement to confirm with future changes in federal and state regulations, upon review by district’s legal counsel; and,
  c.

Approve the District Plan’s Investment Policy Statement and delegated Board authority to the Auditor-Controller to approve minor amendments, if necessary.

Action by the Board at its meeting of September 25, 2009 – Resolution
NON-CONSENT CALENDAR

       
  AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre
       
5.

Receive the Updated Five- and Ten-Year Financial Projection

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith presented a report on the District’s financial projection for the ten-year period from FY 10/11 through FY 19/20, providing a recommendation to receive the updated Five- and Ten-Year Financial Projection.

The report included the following sections, as well as a detailed narrative on each: 1) Introduction; 2) Fiscal Strength of the District; 3) Projection Findings; 4) Assumptions; and, 5) Next Steps; as well as the following Appendices: Appendix A, Projection; Appendix B, Assumptions; Appendix C, Ten-Year Capital Plan Projection; Appendix D, Capital Contribution Calculation; and, Appendix E, Reserve Structure.

The report stated that new financial projections were released that project a $132 million shortfall for the coming 5-year period. This shortfall is a result of a combination of new factors arising after the September 2, 2008 toll increase and expected inflationary increases. The $132 million shortfall includes: $20 million in lost State Transportation Act funds that will not be awarded by the State; $20 million in lost toll revenue due to the recession; $30 million in increased expense to carry out the full Capital Plan of projects; and $37 million needed to fulfill the first half of the District’s commitment of $75 million for the Doyle Drive Reconstruction Project. The Board of Directors will begin discussion on strategic solutions for reducing the shortfall later this month.

The report included a line chart showing the amount of reserve funds available for capital projects over the past 20 years, from FY 88/89 to FY 08/09. The report noted that it is projected that the FY 10/11 Operating and Capital Budget will encumber all available capital reserve resources, due to large capital projects that begin in the next two years and the District’s contribution to Doyle Drive. The District’s reserves decreased slightly, from approximately $99 million in FY 07/08 to an estimated $97 million for FY 08/09, and are expected to decrease further due to the start of several large capital projects such as Bus lot paving, Ferry float rehabilitation, communications system upgrades, as well as the construction of Doyle Drive. The report stated that the FY 09/10 Operating Budget was expected to keep the reserves constant through the year. The District must raise additional funds for future capital projects beyond FY 10/11, and an estimate of the amount required is provided in the projection deficit.

The report stated that the District also holds reserves that are available for operations, emergencies, Bridge self-insured losses, other legal liabilities and debt service reserves, but are not available for capital projects. Information regarding the capital contribution and reserve structure appears in Appendices D and E of the report.

Findings of the revised 5- and 10-year projection for revenues and expenses were summarized in the report as follows: total operating and District capital expenses for FY 2011 were estimated at $177 million, with $164 million total operating revenue available, leaving a deficit of $13 million. The 10-year estimated operating and District capital expense was projected to be $2.1 billion with total operating revenue estimated to be $1.7 billion resulting in a $417 million deficit by the end of the ten year period.

Compared to the previous projection, over the period 2010 to 2019, the 5-year projected deficit of $101 million was approximately the same, while the 10-year projected deficit of $358 million was approximately $35 million more than the previous projection. The report stated that the Board had created a Financial Planning Advisory Committee with the goal of creating a plan to eliminate the District’s deficit, and that a deficit reduction plan is expected to be presented to the full Board for review and approval in October, 2009.

The report described the capital program assumptions, which are to be reviewed each year, noting that grants are generally assumed to fund 80% of Transit rehabilitation and replacement projects, consistent with prior experience, and 80% of the core Bridge paint and rehabilitation projects. At the request of the Board of Directors, staff provided an analysis of alternative capital revenue assumption scenarios, as follows:

  • With an 80% grant funded assumption, the five-year deficit is $132 million (the current assumption);
  • With a 50% grant funded assumption, the five-year deficit is $147 million or an additional $15 million from 80% base assumption; and,
  • With a 30% grant funded assumption, the five-year deficit is $157 million or an additional $25 million from the 80% base assumption.

The report noted that all of the above-listed scenarios assume using approximately $50 million of the District’s reserves over a five-year period. The report included a chart listing the major Bridge capital projects in the 10-Year Capital Plan. 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 stated this report was the annual projection update, a non-policy document the purpose of which was to project different outcomes from different policy decisions. The projections are from July 1, 2010 through June 30, 2020. He stated that assumptions were relatively conservative, and that the plan would maintain status quo. He noted it would be a useful tool for the Board’s use in making decisions. First, reserves are shown on page 3 of the report. Last year, reserves did not increase because funds were set aside for pollution remediation of lead-based paint on the Bridge.

Referring to the findings of this projection, he stated that a $13 million deficit could be expected by FY 2011, $132 million by the end of 5 years, and $417 million by the end of ten years. These numbers are somewhat higher than previously projected. Also, the capital plan this year is $60 million more than projected last year. While no new projects have been added since last year, existing projects have become more expensive. This 5- and 10-year projection shows the deficit for five years to be about the same as previously estimated, and the deficit for ten years increased by $35 million over the previous estimate. The increase has been partially offset by the salary freeze implemented by the Board.

The Board-appointed Financial Planning Advisory Committee has reviewed this document and prepared a financial plan to be presented to the Board, which will target these projections.

Discussion ensued, including the following comments and inquiries:

  • Director Grosboll inquired as to the manner in which the lead paint remediation project would go forward. In response, Mr. Wire stated that discussions with the State of California on this issue began a number of years ago and are ongoing. He stated that the District knows lead paint was used in past years so the costs of remediation are estimated as required by law. The figures projected for the future include increases for inflation and will be reviewed annually. The Board will make policy decisions as to the exact manner in which these funds are to be spent.
  • Director Snyder inquired as to whether a chart could be provided showing changes in Bridge tolls from 1989 to 2009, along with changes in transit fares over the same period. In response, Mr. Wire stated that a report and chart would be prepared.
  • Chair Stroeh stated that the Financial Planning Workshop (a Special meeting of the Board) is scheduled to take place on October 30, 2009.

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

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors receive the updated Five- and Ten-Year Financial Projection (Projection) from FY 10/11 through FY 19/20, including the following Sections and Appendices, included in the Projection attached to the official Resolution:

  a. SECTIONS
    I. Introduction;
    II. Fiscal Strength of the District;
    III. Projection Findings;
    IV. Assumptions; and,
    V. Next Steps.
  b. APPENDICES
    A.

Projection;

    B. Assumptions;
    C. Ten-Year Capital Plan Projection;
    D. Capital Contribution Calculation; and,
    E.

Reserve Structure.

Action by the Board at its meeting of September 25, 2009 – Resolution
NON-CONSENT CALENDAR

       
  AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre
       
6.

Accept Annual Review and Report from the OPEB Retirement Investment Trust Board to the Golden Gate Bridge, Highway, and Transportation District's Board of Directors

In a memorandum to Committee, the OPEB Retirement Investment Trust Board presented its recommendation that the Board of Directors accept the Annual Review and Report of its investment policy, Trust service providers, and the Trust Board Charter.

As background, the OPEB Retirement Investment Trust Board (“Trust Board”) provided an annual review and report to the District Board of Directors. The report stated that the OPEB Retirement Investment Trust was established in 2007 to provide for funding of retiree health benefits and other post-employment benefits for the District’s eligible retirees. The Trust Board was established at the same time. It is the responsibility of the Trust Board to annually monitor compliance with the Trust’s investment policy, review and assess the performance of the Trust Board’s service providers and the adequacy of the Trust Board Charter and to subsequently report their findings to the District Board of Directors.

Periodic reports from PFM Asset Management LLC (“PFM”) as the Trust’s Investment Advisor and Trust Administrator are reviewed by the Trust Board. A copy of PFM’s most recent report was provided as an attachment to the memorandum. The PFM report stated that as of June 30, 2009, the investment portfolio is in full compliance with the District’s Investment Policy and Trust Agreement. The Compliance Certificate appears on page 3.1 of the PFM report and was reviewed by the OPEB Trust Board at its recent OPEB Trust Board Meeting on September 28, 2009.

The report states that two service providers perform administration and implementation of the OPEB Trust and investment policy, PFM and U.S. Bank National Association (U.S. Bank). The Trust Board has reviewed the performance of both and found that both have complied fully with their responsibilities, which are summarized in the report.

The report concluded that, following the Trust Board’s review of its Charter, no changes were recommended. Finally, no fiscal impact is associated with receiving the report. 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 SOBEL/REILLY to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee recommends the Board of Directors accept the FY 08/09 Annual Review and Report from the OPEB Retirement Trust Board in the following three areas:

  a. Monitor compliance of the Investment Policy for the OPEB Trust, for which compliance has been certified as of June 30, 2009;
  b. Review and assess the performance of the two service providers: a) PFM Asset Management LLC, as the Investment Advisor and Trust Administrator; and, b) U.S. Bank National Association as the Trustee and Custodian; which have complied fully with their responsibilities; and,
  c.

Review and reassess the adequacy of the Trust Board’s Charter and recommend proposed changes, if necessary, which after review no changes were recommended.

Action by the Board at its meeting of September 25, 2009 – Resolution
NON-CONSENT CALENDAR

       
  AYES (10): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Newhouse Segal, Reilly, Snyder and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (2): Moylan and Pahre
       
7.

Monthly Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares (for Two Months Ending July and August 2009)

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 the two months ending July 31, 2009 and August 31, 2009. 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 pointed out that Bridge traffic has increased during July and August 2009 over the same period in 2008. Bus patronage, however, has decreased nearly 16% during this period compared to 2008. The decrease in bus patronage is likely to continue because employment is expected to recover slowly and transit use is closely aligned with employment. The decline is in both local and regional ridership but regional ridership has felt two-thirds of the decrease.

Discussion ensued, including the following comments and inquiries:

  • Director Grosboll inquired as to whether the Sunday afternoon return Ferry from Sausalito had increased or decreased since last year. In response, Mr. Wire stated that this information would be prepared and provided by staff at the earliest possible time.
  • Director Snyder inquired as to the proportion of ridership on Golden Gate Transit (GGT) made up of commuters and how commuter ridership on GGT compared to commuter ridership on other forms of public transportation. In response, Mr. Wire stated that the drop in regional ridership was approximately twice the drop in local ridership, giving an indication that regional transit serves more commuters than does local transit. He stated the statistics could be provided from the recently completed Transit Survey.
       
8. Monthly Review of Financial Statements (for Two Months Ending July and August 2009)
       
  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 Operating Revenues and Expenses, consolidated for one and two months ending July 31, 2009, and August 31, 2009. 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 the two months ending July 31, 2009, and August 31, 2009. 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

       
9.

Public Comment

There was no public comment.

   
10.

Adjournment


All business having been concluded, the meeting was adjourned at 11:10 a.m.

   

 

Respectfully submitted,

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