July 9, 2010

 

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, CA, on Friday, July 9, 2010, at 9:45 a.m., Vice Chair Pahre presiding.

Committee Members Present (6): Vice Chair Pahre; Directors Cochran, Eddie, Elsbernd and Sobel; President Boro (Ex Officio)
Committee Members Absent (3): Directors Grosboll and Moylan; Chair Stroeh
Other Directors Present (5): Directors Brown, Chu, Newhouse Segal, Reilly and Sanders

Committee of the Whole Members Present (11): Directors Brown, Chu, Cochran, Elsbernd, Newhouse Segal, Pahre, Sanders and Sobel; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
Committee of the Whole Members Absent (8): Directors Campos, Dufty, Grosboll, Kerns, McGlashan, Moylan, Snyder and Stroeh

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Procurement and Retail Operations Director/Acting Auditor-Controller Lori Murray; Attorney David J. Miller; Attorney Madeline Chun; District Secretary Janet S. Tarantino; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Bus Transit Division Teri Mantony; Deputy General Manager/Ferry Transit Division Jim Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: None

   
1.

Authorize Award of Contract No. 2011-MD-1, Armored Carrier Collection Services, to Brink’s, Inc., and Related Actions

In a memorandum to Committee, Procurement and Retail Operations Director Lori Murray, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to award a contract to Brink’s U.S., a division of Brink’s, Inc. (Brink’s) for armored carrier collection services; and, approve all related actions, as outlined in the staff report.

The staff report provided information regarding RFP No. 2010-D-6, Revenue Collection, stating it had resulted in only one proposal, which was cost prohibitive. Staff performed additional research to determine the best method of achieving revenue processing services at a cost consistent with the Financial Plan for Achieving Long-Term Financial Stability (Strategic Plan), approved by the Board of Directors at its Special Meeting of October 30, 2009. In doing so, staff found that the scope of RFP No. 2010-D-6 was not a good match for the business models of revenue collection service companies, and a revised scope of work was developed, with revenue processing and transport services combined. The revised scope produced two responses, one of which was cost prohibitive. The other was submitted by Brink’s, which currently contracts with the District for transport services only. Staff recommends that Brink’s provide transport services, combined with counting and processing of transit revenues, as well as delivery of all Bridge, Bus Transit and Ferry Transit revenues to the District’s bank, Wells Fargo Bank. The staff report further stated that the changed scope of work will significantly reduce the overall budget required for cash handling services. In addition, salary and fringe benefit savings of approximately $200,000.00 annually will be realized due to the District’s reduced need for two Vault Officer positions.

At the meeting, Ms. Kupersmith summarized the staff report and stated that, under this proposal, Brink’s will not only collect money, but will also count it at their off-site location. Ms. Kupersmith added that the method proposed is standard operating procedure at other locations where large sums of cash are collected by public agencies. She stated that the District, as a long-standing past practice, has been processing its revenues in-house. However, the present need to reduce expenses, as provided for in the District’s Strategic Plan, makes it prudent to relieve the District of the need for two Vault Officer positions. She stated that the individuals who hold these two positions have been informed and will be placed into preferential hiring status at the District.

Discussion ensued, including the following inquiries:

  • Director Eddie made the following inquiries:
    • He inquired as to the total three-year cost of the proposed contract. In response, Ms. Kupersmith stated that the contract will cost the District $225,000.00 for three years, which is $75,000.00 per year.
    • He inquired as to the method the District would use to ascertain that the figures provided back to the District by Brink’s are accurate. In response, Ms. Murray stated that the GFI fareboxes recently procured by the District provide accurate accounting of the amounts collected. In addition, sorting will be done by location and division, and a serial number will be provided for the collection bins. The District will reconcile the counts provided by both Brink’s and Wells Fargo Bank.

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 actions relative to the award of Contract No. 2011-MD-1, as follows:

  a. Authorize award of Contract No. 2011-MD-1, to Brink’s U.S., a division of Brink’s, Inc. (Brink’s), in an estimated amount of $225,000.00, for a three-year term, effective August 1, 2010, plus two one-year options subject to an annual increase of up to five percent for the first option year and three and one-half percent the second option year, based upon a documented increase in the Contractor’s costs, subject to negotiation of final terms and conditions by the General Manager;
  b. Authorize the establishment of a Contingency Fund in the amount of $30,000.00;
  c. Authorize the General Manager to approve amendments to Contract No. 2011-MD-1 up to the maximum of the available Contingency Fund;
  d. Eliminate two Vault Officer positions in the District Division, at a salary range of $51,210.00 to $56,867.00, plus fringe benefits, targeted for October 1, 2010; and,
  e. Amend the Table of Organization accordingly;
 

with the understanding that requisite funds are available in the FY 10/11 Bridge, Bus Transit, Ferry Transit and District Divisions’ Operating Budgets, and that requisite funds will be included in the subsequent fiscal years accordingly.

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

AYES (11): Directors Brown, Chu, Cochran, Elsbernd, Newhouse Segal, Pahre, Sanders and Sobel; Second Vice President Eddie; First Vice President Reilly; President Boro
NOES (0): None

   
2.

Public Comment

There was no public comment.

   
3.

Adjournment

All business having been concluded, the meeting was adjourned at 10:00 a.m.

   

 

Respectfully submitted,

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