April 9, 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 was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday, April 9, 2010, at 9:00 a.m., Chair Stroeh presiding.

Committee Members Present (7): Chair Stroeh; Directors Cochran, Eddie, Reilly, Snyder and Sobel; President Boro (Ex Officio)
Chair Stroeh appointed Directors Reilly and Snyder Pro-Tem Members for this meeting only.

Committee Members Absent (4): Vice Chair Pahre; Directors Elsbernd, Grosboll and Moylan

Other Directors Present (1): Director Sanders

Staff Present: General Manager Celia G. Kupersmith; 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 Transit Division Teri W. Mantony; Deputy General Manager/Ferry Transit Division James P. Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Public Affairs Director Mary Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

   
1.

Approve a Six-Month Extension of the Current Salary Freeze for all Non-Represented Employees and Officers

In a memorandum to Committee, General Manager Celia Kupersmith reported on staff’s recommendation approve a six-month extension of the current salary and benefits freeze for all non-represented employees and Officers, effective July 1, 2010 through December 31, 2010.

The staff report provided a brief background on the need to identify and implement solutions to address the identified $132 million deficit that has been projected over the next five years, stating that the Financial Planning Advisory Committee (Advisory Committee) was created in May 2009 for the purpose of identifying possible solutions to address the projected deficit. The report stated that the Board, at its Special Meeting on October 30, 2009, approved the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability (Plan). Phase I of the Plan includes Initiative No. 18, which calls for freezing across-the-board general salary increases or performance-based bonuses in FY 09/10 for non-represented employees and Officers, in light of the serious financial challenges in the upcoming fiscal year with loss of State Transit Assistance funds and the recession-caused decrease in toll revenue. The staff report noted that the Union Coalition is currently under an eighteen-month freeze.

Finally, the staff report stated that a six-month salary freeze in FY 10/11 for all non-represented employees and Officers would save approximately $150,000.00. 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/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 approve a six-month extension of the current salary and benefits freeze for all non-represented employees and Officers, effective July 1, 2010 through December 31, 2010.

Action by the Board at its meeting of April 9, 2010 – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Stroeh; Directors Cochran, Eddie, Reilly, Snyder and Sobel
NOES (0): None
ABSENT (4): Vice Chair Pahre; Director Elsbernd, Grosboll and Moylan; President Boro

   
2.

Approve Actions Relative to a Strategic Development Plan for All Electronic Toll Collection on the Golden Gate Bridge

In a memorandum to Committee, Revenue Collection Program Manager David Dick, Deputy General Manager/Bridge Division Kary Witt, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to approve actions relative to a Strategic Development Plan (SDP) for all electronic toll collection on the Golden Gate Bridge.

The staff report provided a brief background on the need to identify and implement solutions to address the identified $132 million deficit that has been projected over the next five years, stating that the Financial Planning Advisory Committee (Advisory Committee) was created in May 2009 for the purpose of identifying possible solutions to address the projected deficit. The report stated that the Board, at its Special Meeting on October 30, 2009, approved the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability (Plan). Phase I of the Plan includes Initiative No. 4, “Implement All Electronic Tolling.”

The staff report noted several benefits that may be realized through all electronic tolling (AET), among which are improved operational efficiency, increased safety, reduced emissions (via fewer vehicle decelerations and accelerations at the toll plaza) and greater efficiency through operation of a single toll collection system.

The staff report stated that the creation of an SDP will include the following three phases: (1) appraisal of existing conditions; (2) alternatives analysis; and (3) the SDP, which will provide the District with a road map for AET conversion. The report stated that District involvement in the creation of an effective SDP will require the Electronic Revenue Collection Program Manager to work half-time with a consultant team, serving as the Project Manager, guiding consultant efforts and coordinating District involvement.

The staff report included a recommendation to authorize execution of a Sole Source Professional Services Agreement with Traffic Technologies, Inc. (TTI), of New Windsor, New York, in the amount of $292,500.00, for the creation of a Strategic Development Plan for all electronic tolling conversion on the Golden Gate Bridge,. TTI has provided oversight of the design, development, testing and installation of the District’s toll revenue systems since 1997.

Also, the report included a recommendation to create a new Capital Project, with a budget not to exceed $337,000.00, to be funded from District reserves, with $292,500.00 allocated for the creation of the Strategic Development Plan and $44,500.00 allocated for the salary and benefits for half-time Electronic Revenue Collection Program Manager.

Finally, the staff report included a recommendation to authorize execution of Amendment No. 1 to Contract No. 2009-D-7, Technical Support - FasTrak® System Enhancement and Special Analyses with Traffic Technologies, Inc., in the amount of $39,000.00, to provide temporary operational support for the existing toll collection system during the strategic development planning process. The report noted that sufficient funds for this Change Order are available in the FY 09/10 District Division Operating 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, Ms. Kupersmith emphasized the importance of the Board’s approval for the SDP for the purpose of evaluating options. She stressed that the Committee would be recommending to the Board approval of only the evaluation process and associated costs, and not approval to implement electronic tolling on the Golden Gate Bridge. This evaluation will allow identification of the most cost effective method or methods of collecting tolls. In conclusion, Ms. Kupersmith stated that District representatives will meet with union representatives on a periodic basis to keep them informed on the status of this matter.

[President Boro and Director Sanders arrived at this time.]

Discussion ensued, including the following comments and inquiries:

  • Director Reilly inquired as to the length of the project. In response, Mr. Wire stated that the project will take approximately six months, and its focus will be to determine if electronic toll collection would be feasible and effective on the Golden Gate Bridge.
  • Director Cochran inquired as to whether the California Department of Transportation is planning to move to all electronic toll collection on state bridges. In response, Mr. Witt stated that the state is not actively pursuing a change to all automatic tolling at this time.

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 approve actions relative to a strategic development plan for all electronic toll collection conversion on the Golden Gate Bridge, as follows:

  1.
Authorize execution of a Sole Source Professional Service Agreement with Traffic Technologies, Inc., New Windsor, New York, in the amount of $292,500.00, for the creation of a Strategic Development Plan for all electronic tolling conversion on the Golden Gate Bridge; and,
  2.
Authorize execution of Amendment No. 1 to Contract No. 2009-D-7, Technical Support - FasTrak® System Enhancement and Special Analyses, with Traffic Technologies, Inc., in an amount not to exceed $39,000.00, to provide temporary operational support for the existing toll collection system during the planning process of the Strategic Development Plan, with the understanding that sufficient funds are available in the FY 09/10 District Division Operating Budget; and,
  3.

Authorize establishment of a new Capital Project for the planning phase of the Strategic Development Plan for all electronic toll collection conversion on the Golden Gate Bridge, in an amount not to exceed $337,000.00, to be funded from District reserves, to provide monies for the creation of the Strategic Development Plan ($292,500.00) and the salary and the benefits for a half-time Project Manager ($44,500.00).

Action by the Board at its meeting of April 9, 2010 – Resolution
NON-CONSENT CALENDAR

     
 

AYES (7): Chair Stroeh; Directors Cochran, Eddie, Reilly, Snyder and Sobel; President Boro
NOES (0): None
ABSENT (4): Vice Chair Pahre; Directors Elsbernd, Grosboll and Moylan

   
3.

Public Comment

There was no public comment.

   
4.

Adjournment

All business having been concluded, the meeting was adjourned at 9:25 a.m.

   

 

Respectfully submitted,

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