October 22, 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 was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, October 22, 2009, at 10:30 a.m., Acting Chair Moylan presiding.

Committee Members Present (6): Acting Chair Moylan; Directors Cochran, Eddie, Grosboll and Sobel; President Boro (Ex Officio)
Committee Members Absent (3): Chair Stroeh; Directors Elsbernd and Pahre
Other Directors Present (2): Directors Newhouse Segal and Reilly

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, Ferry Transit Division James P. Swindler; Deputy General Manager, Administration and Development Z. Wayne Johnson; Acting Executive Assistant to the General Manager Sonia Pedlar; Assistant Clerk of the Board Lona Franklin

     
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.

taff 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 September 1, 2009 through September 30, 2009, totaling $13,602.00;
   
  b.
Ratify investments made by the Auditor-Controller during the period September 15, 2009 through October 12, 2009, as follows:
     
Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
Calyon North America, Inc.
Commercial Paper
9/15/09
11/02/09
2,028,350.72
0.24
Bank of America Commercial Paper
9/25/09
12/28/09
6,344,021.92
0.24
FNMA Notes (Callable)
9/29/09
09/29/14
5,000,000.00
3.13
BNP Paribas Fin., Inc.
Commercial Paper
10/05/09
12/07/09
3,548,881.75
0.18
Societe Generale NA
Commercial Paper
10/05/09
12/07/09
4,998,337.50
0.19
US Treasury Notes
10/09/09
11/15/10
871,466.02
0.52
     
  c. Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between October 13, 2009, and November 9, 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 September 2009 prepared by PFM.
     
 

Action by the Board at its meeting of October 23, 2009 -- Resolution
CONSENT CALENDAR

AYES (6): Acting Chair Moylan; Directors Cochran, Eddie, Grosboll and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (3): Directors Elsbernd, Pahre and Stroeh

     
2.

Authorize Budget Increase in the FY 09/10 Bridge Division Capital Budget Relative to Receipt of National Science Foundation Grant Funds

In a report to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided staff’s recommendation for the Committee’s concurrence with a budget increase relative to receipt of National Science Foundation (NSF) Grant Award No. DRL-0840185, Golden Gate Bridge Informal Science Education Project. The report stated that the FY 09/10 Bridge Division Capital Budget is recommended to be increased in the amount of $3,499,777.00, to be funded with NSF grant funds ($2,999,777.00) and District reserves ($500,000.00).

The report stated that funding would include improvements to the visitor experience at the Golden Gate Bridge, such as, development of permanent science-oriented outdoor exhibits, and information and exhibits about the Bridge and its construction. A master plan would detail improvements required to accommodate the outdoor exhibits, as well as placement of exhibits, possible later expansion into a visitor center, and website enhancements using the Bridge as focal point. These improvements are preliminarily estimated to cost $500,000.00.

The report stated that this grant will also provide funding for a conference of Informal Science Education (ISE) professionals and infrastructure professionals to encourage ISE opportunities at other infrastructure sites.

In addition, the report estimated the first-year grant fund expenditures at $972,415.00 with the remainder of District and grant funds to be expended during the following four years. 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/BROWN 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 Bridge Division Capital Budget in the amount of $3,499,777.00 to be funded with NSF grant funds ($2,999,777.00) and District reserves ($500,000.00), relative to receipt of NSF Grant Award No. DRL-0840185, Golden Gate Bridge Informal Science Education Project.

Action by the Board
Refer to the Building and Operating Committee Meeting of October 22, 2009

AYES (6): Acting Chair Moylan; Directors Cochran, Eddie, Grosboll and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (3): Directors Elsbernd, Pahre and Stroeh

     
3.

Authorize Amendment to Pass Through Agreement with the Metropolitan Transportation Commission for Federal Transit Administration Funds for the TransLink® Project

In a report to Committee, Director of Capital and Grant Programs Gayle Prior, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith provided a report on staff’s recommendation to authorize the General Manager to execute an amendment to the Pass-Through Agreement with the Metropolitan Transportation Commission (MTC) for the TransLink® Project. The report stated that MTC is the lead agency for TransLink® and that District staff has worked on development of the TransLink® regional fare collection project with MTC and other San Francisco Bay Area transit operators since 1992.

The report stated that the District initially was authorized by the Board of Directors in 1996 to enter into a Pass-Through Agreement with MTC, under which the District became the lead federal grant recipient for TransLink®, responsible for several federal grant activities, among which is drawing down federal funds to pass through to MTC. State Transit Assistance funds in the amount of $7,000.00 per year were made available to the District to support TransLink®-related grant activities, and then increased to $10,000.00 per year beginning in FY 06/07.

The report stated that this item authorizes amendment to the pass-through agreement with MTC for the TransLink® project to include additional federal funds to be secured through the District’s Federal Urbanized Area Formula Program grant application and to include additional applicable Federal Transit Administration requirements. The $10,000.00 the District will receive from MTC for monitoring the grant funds is included in the District’s FY 09/10 perating budget. 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, Joseph Wire described the relationship between the District and MTC as long-term and noted that this item is approved annually.

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 Committee recommends the Board of Directors authorize the General Manager to execute an amendment to the Pass-Through Agreement with Metropolitan Transportation Commission for Federal Transit Administration funds for the TransLink® project.

Action by the Board

Resolution

AYES (6): Acting Chair Moylan; Directors Cochran, Eddie, Grosboll and Sobel; President Boro (Ex Officio)
NOES (0): None
ABSENT (3): Directors Elsbernd, Pahre and Stroeh

     
4.

Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares for Three Months Ending September 30, 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 three months ending September 30, 2009. A copy of the report is available in the Office of the District Secretary and on the District’s web site.

Director Sobel made the following inquiry:

  • He inquired as to whether the closure of the Bay Bridge had resulted in additional traffic for the Golden Gate Bridge. In response, Mr. Wire stated that, at the time the Bay Bridge was closed, traffic increased on the Golden Gate Bridge; however, no ongoing increase in traffic has been experienced. He noted that winter traffic is typically somewhat lighter than summer traffic, but no significant difference is expected.

Action by the Board – None Required

     
5. Review of Financial Statements for Three Months Ending September 30, 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 for the three months ending September 30, 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 three months ending September 30, 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

     
6.

FY 09/10 First 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 July 1, 2009, through September 30, 2009. A copy of the report, including attached charts outlining applicable budget adjustments and transfers, is available in the Office of the District Secretary.

Action by the Board – None Required

     
7.

FY 09/10 First 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 July 1, 2009, through September 30, 2009. A copy of the report, including attached charts outlining applicable contracts and change orders, is available in the Office of the District Secretary.

Action by the Board – None Required

     
8.

Closed Session

Attorney David Miller, at the request of Acting Chair Moylan, stated that the Committee would convene in closed session to discuss two matters of pending litigation, (1) Patricia O’Gilvie vs. Golden Gate Bridge, Highway and Transportation District, pursuant to Government Code Section 54956.9(a), listed on the agenda as Item No. 8.a, and (2) Dustin Wise vs. Golden Gate Bridge, Highway and Transportation District, pursuant to Government Code Section 54956.9(a) listed on the agenda as Item No. 8.b.

After closed session, Acting Chair Moylan called the meeting to order in open session with a quorum present. Attorney Miller reported that the Committee had met in closed session, as permitted by the Brown Act, to discuss two items of pending litigation, as listed above. He reported that authority and jurisdiction in the case of Patricia O’Gilvie vs. Golden Gate Bridge, Highway and Transportation District resided within the Finance Committee and, further, that consensus had been reached within the Committee to grant settlement authority to counsel. Attorney Miller also reported that the Committee recommended that the matter of Dustin Wise vs. Golden Gate Bridge, Highway and Transportation District be referred to the October 23, 2009, meeting of the Board of Directors for necessary action.

     
9.

Public Comment

There was no public comment.

     
10.

Adjournment

All business having been concluded, the meeting was adjourned at 10:50 a.m.

     

 

Respectfully submitted,
/s/ John J. Moylan, Acting Chair
Finance-Auditing Committee