March 25, 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, March 25, 2011, at 9:50 a.m., Acting and Vice Chair Pahre presiding.

Committee Members Present (7): Acting and Vice Chair Pahre; Directors Boro, Cochran, Elsbernd, Grosboll and Sobel; President Reilly (Ex Officio)
Committee Members Absent (2): Director Moylan; Chair Stroeh
Other Directors Present (6): Directors Campos, Eddie, Rabbitt, Renée, Snyder and Theriault

Committee of the Whole Members Present (13): Directors Boro, Campos, Cochran, Elsbernd, Grosboll, Pahre, Rabbitt, Renée, Snyder, Sobel and Theriault; First Vice President Eddie; President Reilly (Ex Officio)
Committee of the Whole Members Absent (6): Directors Brown, Chu, Mar, McGlashan, Moylan and Stroeh

Staff Present: General Manager Denis Mulligan; District Engineer Ewa Bauer; Acting Auditor-Controller Gayle Prior; District Secretary Janet Tarantino; Attorney David Miller; 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; Financial Management and Business Process Manager Alice Ng; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: None

 

     
1.

Ratify Actions by the Auditor-Controller

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan 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 (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.

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 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, 2011 through February 28, 2011;
  b. Ratify investments made by the Auditor-Controller during the period February 15, 2011, through March 14, 2011, as follows:
     
Security
Purchase Date
Maturity Date
Original Cost
Percent Yield
US Bancorp Notes
02/16/11
05/15/14
5,322,500.00
2.13
Credit Agricole NA Commercial Paper
02/22/11
03/24/11
6,354,675.84
0.25
BNP Paribas Fin. Inc Commercial Paper
02/22/11
05/23/14
5,505,316.50
0.34
     
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between March 15, 2011, and April 11, 2011, as well as the investment of all other funds not required to cover expenditures that may become available; and,
 

d.

Accept the Investment Reports for February 2011, as prepared by PFM.

Action by the Board at its meeting of April 8, 2011 – Resolution
CONSENT CALENDAR

     
  AYES (11): Directors Boro, Campos, Cochran, Elsbernd, Grosboll, Pahre, Rabbitt, Renée, Snyder, Sobel and Theriault; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None
     
2.

Approve Actions Relative to the Professional Services Agreement with PFM Asset Management LLC, Relative to Request for Proposals No. 2007-D-7, Trust and Investment Management Services for GASB 45 (OPEB) Trust

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan reported on staff’s recommendation to approve actions relative to the Professional Services Agreement with PFM Asset Management LLC (PFM), Request for Proposals (RFP) No. 2007-D-7, Trust and Investment Management Services for GASB 45 (OPEB) Trust, including execution of a Second Amendment to reflect a more favorable unbundled pricing structure, and authorization for the General Manager to execute the required documents.

The staff report stated that, at its meeting of February 24, 2010, the Board authorized exercise of the option to extend the Professional Services Agreement with PFM for two additional one-year terms, ending April 30, 2012. The OPEB Retirement Investment Trust Board (Trust Board), at its meetings of September 22, 2010 and February 24, 2011, considered the unbundled compensation structure offered by PFM. At the Trust Board meeting of February 24, 2011, staff evaluated both the bundled and unbundled pricing structures, and found that it would be cost effective for the District to adopt the proposed unbundled compensation structure as soon as possible.

The staff report summarized the current bundled compensation structure between the District and PFM, as well as the proposed unbundled compensation structure. The staff report stated that the total estimated cost under the unbundled compensation structure would be approximately $1,118,000.00 (0.70% per annum) as compared to the current cost under the bundled compensation structure, $1,157,000.00 (0.73% per annum). The staff report also stated that alternative vendors were considered; however, PFM’s unbundled cost structure appears competitive and is reasonable.

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/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 Request for Proposals (RFP) No. 2007-D-7, Trust and Investment Management Services for GASB 45 (OPEB) Trust, as follows:

  a.
Authorize execution of the Second Amendment to the Professional Services Agreement with PFM Asset Management, LLC, Philadelphia, PA, relative to RFP No. 2007-D-7, to reflect a more favorable unbundled pricing structure for a new three-year base term effective March 1, 2011, through February 28, 2014, with options, exercisable by the District, for two additional one-year terms, as recommended by the OPEB Retirement Investment Trust Board at its meeting of February 23, 2011; and,
  b.

 

Authorize the General Manager to execute related documents, as necessary, to effectuate the revised unbundled pricing structure, including a fee agreement with U.S. Bank as Trustee and Custodian.

 

Action by the Board at its meeting of March 25, 2011 – Resolution
NON-CONSENT CALENDAR

     
 
AYES (11): Directors Boro, Campos, Cochran, Elsbernd, Grosboll, Pahre, Rabbitt, Renée, Snyder, Sobel and Theriault; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None
     
3.

Monthly Review of Golden Gate Bridge Traffic/Tolls and Bus and Ferry Transit Patronage/Fares (for Eight Months Ending February 2011)

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan provided a schedule comparing categories of Bridge traffic, as well as a monthly review of Bridge traffic, tolls, transit patronage and fares, for eight months ending February 2011. Copies of the reports are 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 2011
     
  a.

Statement of Revenue and Expenses

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan provided financial statements entitled, Statement of Operating Revenues and Expenses. Copies of the reports are 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 Prior, Auditor-Controller Joseph Wire and General Manager Denis Mulligan provided financial statements entitled, Statement of Capital Programs and Expenditures. Copies of the reports are available in the Office of the District Secretary and on the District’s web site.

Action by the Board – None Required

     
5.

Public Comment

There was no public comment on items not on the agenda.

 


6.

Adjournment

All business having been concluded, the meeting was adjourned at 9:55 p.m.

   
   

 

Respectfully submitted,

s/ Barbara Pahre, Acting and Vice Chair
Finance-Auditing Committee