March 25, 2010

 

REPORT OF THE FINANCE-AUDITING COMMITTEE

 

Honorable Board of Directors
Golden Gate Bridge, Highway
  and Transportation District

Honorable Members:

A meeting of the Finance-Auditing Committee (Committee) was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, March 25, 2010, at 10:30 a.m., Chair Stroeh presiding.

Committee Members Present (7): Chair Stroeh; Directors Cochran, Eddie, Grosboll, Moylan and Sobel; President Boro (Ex Officio)

Committee Members Absent (2): Director Elsbernd; Vice Chair 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 Miller; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Bus Transit Division Teri Mantony; Deputy General Manager/Ferry Transit Division James Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Public Affairs Director Mary Currie; Electronic Revenue Collection Program Manager David Dick; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: Nancy Jones, PFM Asset Management, LLC

     
1.

Ratify Actions by the Auditor-Controller

In a memorandum to Committee, Auditor-Controller Joseph M. Wire and General Manager Celia G. Kupersmith outlined commitments, disbursements and investments made on behalf of the Golden Gate Bridge, Highway and Transportation District (District). The report also included a copy of the District’s Investment Report from PFM Asset Management, LLC. 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, PFM Asset Management, LLC, stated that employment numbers came out this week and were better than expected. She explained that U.S. Treasury notes are at 1.08% this week, which is higher than it has been in a number of months. She stated that 30% of the District’s portfolio is in investments that mature in less than six months.

Staff recommended and the Committee concurred by motion made and seconded by Directors MOYLAN/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 the following actions by the Auditor-Controller:

     
  a. The Board of Directors has no commitments and/or expenditures to ratify for the period February 1, 2010, through February 28, 2010.
     
  b. Ratify investments made by the Auditor-Controller during the period February 17, 2010, through March 15, 2010, as follows:
     
Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
FHLB TAP Bonds
03/12/10
12/13/13
552,521.25
2.21
   
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between March 16, 2010, and April 12, 2010, 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 February 2010, as prepared by PFM.

Action by the Board – Resolution
CONSENT CALENDAR

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

Authorize Concurrence of the Bay Area Toll Authority’s Change Order Award for Modified FasTrak® Regional Customer Service Center Back Office

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to authorize concurrence of the Bay Area Toll Authority’s (BATA) change order award to Affiliated Computer Services, Inc. (ACS) for modified functionality of the back office system of the FasTrak® Regional Customer Service Center (CSC).

The staff report stated that the District, as a partner with Bay Area Toll Authority (BATA) for operation and management of the FasTrak® Regional Customer Service Center, is required by the Cooperative Agreement between the parties to concur in the proposed change order. The staff report provided a brief history of the feasibility study by BATA which was completed in Spring 2009. The purpose of the study was to implement and analyze a video tolling demonstration project. Video tolling involves the electronic collection of tolls through the use of license plate image capture and pre- or post-toll payment. In Summer 2009, the Golden Gate Bridge was added as a demonstration site for the project study area. For a successful demonstration, additional back office system functionality and operational support services are necessary. These are expected to take approximately 10 months to complete. The staff report stated that performance of this work will not impact the CSC’s ability to maintain the current level of service provided to FasTrak® customers, nor will it impact operational activities at the Golden Gate Bridge or the CSC. Furthermore, the staff report stated that there is no direct negative fiscal impact for the District associated with the BATA Change Order for the modified CSC back office. 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, Mr. Wire stated that, under the cooperative agreement between the parties, both BATA and the District are required to approve change orders. He stated that the demonstration will involve the electronic processing of toll transactions through the capture of a video image. He stated that this technology is used worldwide and if the Board desires to adopt all-electronic tolling in the future, this technology would be a component. Testing details will be discussed and confirmed with BATA and the test will be designed over the next year. Approximately 100 volunteer employees will be asked to participate with the demonstration planned to take place during Spring 2011.

Discussion ensued, including the following comments and inquiries:

  • Director Sobel inquired as to how post-toll payment would work, technically. In response, Mr. Wire stated that a person would contact the customer service center after passing through the toll area and would pay using a credit card.
  • President Boro inquired as to the reason a feasibility project is needed, since automatic toll collection is in use elsewhere. In response, Mr. Witt stated that there are a number of models of automated toll collection throughout the world. Once data has been collected and analyzed, a determination can be made as to how the District should proceed. He added that reliance on photographs of license plates is common to almost all systems. Mr. Wire responded that the technology for video toll collection will be evaluated as to how well it can work for the District, rather than being evaluated for whether or not it will work.
  • Director Grosboll inquired as to whether the bridge near the City of Concord on Highway 680 has electronic toll collection. In response, Mr. Witt stated that part of the bridge referred to (the Benecia-Martinez Bridge) has high speed tolling with no toll plaza. He stated it is a tag-based system, so that a transponder is required to avoid a toll violation. He added that the method proposed for study at the District will not require users to have a transponder.

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 that the Board of Directors authorize concurrence of the Bay Area Toll Authority’s change order award to Affiliated Computer Services, Inc. for expanded functionality of the back office system of the FasTrak® Regional Customer Service Center.

Action by the Board of Directors – Resolution
NON-CONSENT CALENDAR

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

   
3.

Monthly Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares (for Eight Months Ending February 2010)

In a memorandum to Committee, Auditor-Controller Joseph M. Wire and General Manager Celia G. 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 eight months ending February 28, 2010. 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

   
4.
Monthly Review of Financial Statements for Eight Months Ending February 2010
   
  a. Statement of Revenue and Expenses
   
 

In a memorandum to Committee, Auditor-Controller Joseph M. Wire and General Manager Celia G. Kupersmith provided a financial statement entitled, Statement of Operating Revenues and Expenses. 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, Director of Capital and Grant Programs Gayle S. Prior, Auditor-Controller Joseph M. Wire and General Manager Celia G. Kupersmith provided a financial statement entitled, Statement of Capital Programs and Expenditures. 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.

Closed Session

Attorney David Miller, at the request of Chairman Stroeh, stated that the Finance-Auditing Committee would convene in closed session as permitted by the Brown Act for purposes of discussing a matter of pending litigation, listed on the Committee agenda under the Attorney’s Report as Item No. 7., Conference with Legal Counsel – Pending Litigation, Government Code Section 54956.9(a), Report of John Glenn Administrators and Adjusters, John and Millicent Rutherford vs. Golden Gate Bridge, Highway and Transportation District.

After closed session, Chairman Stroeh called the meeting to order in open session with a quorum present. Attorney Miller reported that, as noted on the agenda, the Committee met in closed session, as permitted by the Brown Act, for purposes of reviewing the above named matter of pending litigation. He reported that the Committee recommends that this matter be referred to the Board of Directors for its decision on March 26, 2010.

   
6.

Public Comment

There was no public comment.

   
7.

Adjournment

All business having been concluded, the meeting was adjourned at 10:55 a.m.

   

 

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