February 11, 2011

 

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, CA, on Friday, February 11, 2011, at 9:30 a.m., Chair Stroeh presiding.

Committee Members Present (8): Chair Stroeh; Vice Chair Pahre; Directors Cochran, Eddie, Grosboll, Moylan and Sobel; President Reilly (Ex Officio)
Committee Members Absent (1): Director Elsbernd
Other Directors Present (5): Directors Boro, Rabbitt, Sanders and Snyder; Second Vice President Newhouse Segal

Committee of the Whole Members Present (13): Directors Boro, Cochran, Grosboll, Moylan, Pahre, Rabbitt, Sanders, Snyder, Sobel and Stroeh; Second Vice President Newhouse Segal; First Vice President Eddie; President Reilly (Ex Officio)
Committee of the Whole Members Absent (5): Directors Brown, Campos, Chu, Elsbernd and McGlashan

[Note: On this date, there was one vacancy on the Board of Directors.]

Staff Present: General Manager Denis Mulligan; District Engineer Ewa Bauer; Auditor-Controller Joseph Wire; District Secretary Janet Tarantino; Attorney David Miller; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Bus Transit Division Teri Mantony; Deputy General Manager/Administration and Development Z. Wayne Johnson; Risk Management and Safety Director William Stafford; Public Affairs Director Mary Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: None



 

1.

Authorize Actions Relative to the Certifications and Assurances for the Public Transportation Modernization, Improvement and Service Enhancement Account Bond Program

In a memorandum to Committee, Director of Capital and Grant Programs Gayle Prior, Auditor-Controller Joseph Wire and General Manager Denis Mulligan reported on staff’s recommendation that the Board of Directors (Board) authorize actions necessary to secure Public Transportation Modernization, Improvement and Service Enhancement Account (PTMISEA) Bond Program grant funds to support FY 10/11 and future transit capital projects for the Golden Gate Bridge, Highway and Transportation District (District) and Marin County Transit District (MCTD).

The staff report stated that, in November 2006, California voters approved Proposition 1B, the Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006. This bond will provide almost $20 billion in State general obligation bonds for approximately 14 different categories of transportation projects, including the PTMISEA program. Funds from this program are available to State Transit Assistance (STA) eligible agencies, including the District, and the program is distributed by the same formula.

The staff report also stated that, to meet State Auditor requirements, the California Department of Transportation’s Division of Mass Transportation has updated its guidelines and developed a new Certification and Assurances document. Beginning in January 2011, each PTMISEA Project Sponsor will be required to sign the Certification and Assurances document prior to receiving an allocation of funds. This document contains general conditions of the PTMISEA program, as well as some additional Cost Principles and Record Retention requirements that are standard for other State-funded projects. Project applicants are required to adopt a resolution appointing individuals or positions to act on behalf of the applicant and its governing body and to provide the related certifications and assurances. A copy of the staff report is available from 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 STROEH/PAHRE to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Finance-Auditing Committee/Committee of the Whole recommends that the Board of Directors authorize the General Manager or his designee to:

  a. Comply with all conditions and requirements set forth in the Certification and Assurances document attached to the Resolution;
  b. Comply with all conditions and requirements set forth in the applicable statutes, regulations and guidelines for all Public Transportation Modernization, Improvement and Service Enhancement Account Bond Program (PTMISEA) funded transit projects; and,
  c. Execute, for and on behalf of the Golden Gate Bridge, Highway and Transportation District, all required documents, including execution and submission of related Certification and Assurances, grant applications and agreements, and any Amendments thereto, relative to the FY 10/11 PTMISEA program, with the California Department of Transportation.
     
 

AYES (13): Directors Boro, Cochran, Grosboll, Moylan, Pahre, Rabbitt, Sanders, Snyder, Sobel and Stroeh; Second Vice President Newhouse Segal; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None

Action by the Board at its Meeting of February 11, 2011 – Resolution
NON-CONSENT CALENDAR

     
2.

Approve Actions Relative to the Inter-County Paratransit Services Agreement with Marin Transit

In a memorandum to Committee, Access and Compliance Planner Harvey Katz, Director of Planning Ron Downing, Deputy General Manager/Bus Transit Division Teri Mantony and General Manager Denis Mulligan, reported on staff’s recommendation that the Board of Directors (Board) approve actions relative to the Inter-County Paratransit Agreement (Agreement) with Marin County Transit District (MCTD).

The staff report stated that the District has historically contracted with the MCTD for the provision of Golden Gate Transit’s (GGT) inter-county paratransit services, as well as limited intracounty service, using the MCTD’s local paratransit service contractor, Whistlestop Wheels (WSW). At its meeting of May 14, 2010, the Board approved the FY 10/11 Agreement between the District and the MCTD, in the amount of $1,167,640.00, for 8,405 revenue hours at $110.11 per hour.

The staff report stated that, following a Federal Transit Administration (FTA) audit of WSW in the autumn of 2010, the District was advised that WSW staff had erroneously underreported total hours, revenue hours, total miles and revenue miles for GGT’s intercounty paratransit services during the last three months of FY 08/09, all of FY 09/10 and the first two months of FY 10/11. The District is financially responsible for the revenue hours and miles provided in previous years and, due to corrections following the audit, will have a higher projected number of revenue hours in FY 10/11.

The staff report stated that a payment of $112,283.00 is due to the MCTD for inter-county paratransit services during FY 08/09, FY 09/10 and the first two months of FY 10/11. In addition, it will be necessary to compensate the MCTD, in the amount of $25,010.00, for the provision of fuel, a radio system provided through Marin Emergency Radio Authority and Mobile Data Terminals. The total projected revenue hours for FY 10/11 equal 11,193, and the hourly rate for paratransit services paid by the District will be $85.73, for an estimated annual amount of $960,000.00 for billable revenue hours. A copy of the staff report is available from the Office of the District Secretary and on the District’s web site.

At the meeting, Ms. Mantony briefly summarized the staff report, stating that, with the Board’s approval today, errors in previous years’ figures will have been rectified and the updated hourly rate will be reflected in the Agreement for FY 10/11.

Mr. Mulligan added that paratransit service is legally mandated. The District contracts with MCTD because most trips take place within the MCTD service area and MCTD maintains a service contract with WSW. Audit of the service by the FTA revealed that the Agreement total was correct, but the allocations within it were not. MCTD is reporting the changes to their Board of Directors.

Discussion ensued, including the following inquiries:

  • Director Grosboll inquired as to whether the audit was a regular or special audit. In response, Mr. Mulligan stated that the audit was done by the FTA in the process of a regular review of the MCTD and WSW.
  • Director Sobel inquired as to how the District can guard against having to make retroactive payments in the future. In response, Mr. Mulligan stated that District staff is working together with the MCTD staff to prevent recurrence. Ms. Mantony added that, although the MCTD would prefer a longer-term Agreement, the District intends to request a one-year Agreement in the future, for the sake of clarity.

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/Committee of the Whole recommends that the Board of Directors approve actions relative to the Inter-County Paratransit Agreement with the Marin County Transit District (MCTD), as follows:

  a. Approve an additional payment in the amount of $112,283.00 to the MCTD for the provision of paratransit services provided by Whistlestop Wheels during Fiscal Years 08/09, 09/10, and 10/11;
  b. Approve an additional payment in the amount of $25,010.00 to the MCTD for ancillary costs associated with the provision of Inter-County Paratransit services; and,
  c. Amend the FY 10/11 Inter-County Paratransit Agreement to reflect a lower hourly rate of $85.73, with an estimated annual amount of $960,000.00 for billable revenue hours.
   
 

AYES (13): Directors Boro, Cochran, Grosboll, Moylan, Pahre, Rabbitt, Sanders, Snyder, Sobel and Stroeh; Second Vice President Newhouse Segal; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None

Action by the Board at its Meeting of February 11, 2011 – Resolution
NON-CONSENT CALENDAR

   
3.

Status Report on the Renewal of the Marine Insurance Program

Risk Management and Safety Director William Stafford provided a status report on the renewal of the Marine Insurance Program. Mr. Stafford stated that, over the past five years, the District’s premiums have decreased by approximately 50%, due to its favorable loss history. He reported that the Jones Act is a counterpart to Workers’ Compensation, and covers third party liability, which exposes the District to some risk.

He stated that the Ferry Transit Division is presently conducting an inventory of its assets, and ascertaining current values to assure an adequate level of insurance protection. He stated that many improvements were made over the past year. He concluded by stating that premiums for marine insurance are expected to remain relatively flat for the foreseeable future.

Action by the Board – None Required

   
4.

Closed Session

Attorney David Miller, at the request of Chair Stroeh, stated that the Finance-Auditing Committee would convene in Closed Session, as permitted by the Brown Act, to discuss the following matters, listed on the Agenda as Item Nos. 5.a. and 5.b.:

   
  “5.a. Conference with Legal Counsel – Pending Litigation
Pursuant to Government Code Section 54956.9(a)
Report of Athens Administrators, Inc.
Cynthia Cummings vs. Golden Gate Bridge, Highway and Transportation District
     
  “5.b. Conference with Legal Counsel – Potential Litigation
Pursuant to Government Code Section 54956.9(b)(1)
Report of Hanson Bridgett LLP
(One Potential Case)”
     
  After Closed Session, Chair Stroeh 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 the matters listed above. He further reported that direction has been given to counsel regarding these matters.
   
5.

Public Comment

There was no public comment.

     
6.

Adjournment

All business having been concluded, the meeting was adjourned at 10:05 a.m.

     

 

Respectfully submitted,

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