October 13, 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 (Committee) of the Golden Gate Bridge, Highway and Transportation District (District) was held in the Board Room, Administration Building, Toll Plaza, San Francisco, CA, on Thursday, October 13, 2011, at 10:30 a.m., Chair Stroeh presiding.

Committee Members Present (9): Chair Stroeh; Vice Chair Pahre; Directors Boro, Cochran, Elsbernd, Grosboll, Moylan and Sobel; President Reilly (Ex Officio)
Committee Members Absent (0): None
Other Directors Present (2): Directors Eddie and Renée

Committee of the Whole Members Present (11): Directors Boro, Cochran, Elsbernd, Moylan, Pahre, Renée, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
Committee of the Whole Members Absent (8): Directors Arnold, Brown, Campos, Chu, Mar, Rabbitt, Snyder and Theriault

Staff Present: General Manager Denis Mulligan; District Engineer Ewa Bauer; Auditor-Controller Joseph Wire; Secretary of the District Janet Tarantino; Attorney Kimon Manolius; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Ferry Transit Division James Swindler; Deputy General Manager/Administration and Development Kellee Hopper; Public Affairs Director Mary Currie; Assistant Clerk of the Board Lona Franklin

Visitors Present: None

 

 

1. Authorize Budget Adjustment(s) and/or Transfer(s)
     
  a.

Budget Transfer from District Reserves to the FY 11/12 Bus Transit Division Operating Budget Relative to the Sublease of Lot Located at Third, Fourth, Perry and Stillman Streets in San Francisco

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan reported on staff’s recommendation to authorize a budget transfer from District Reserves to the FY 11/12 Bus Transit Division Operating Budget/Expenses in the amount of $355,700.00, to fund eight months lease payments to the California Department of Transportation (Caltrans), from November 1, 2011, through June 30, 2012, for the mid-day bus parking lot located at Third, Fourth, Perry and Stillman Streets in San Francisco, CA (SF Bus Lot) ; and, authorize an increase in the FY 11/12 Bus Transit Division Operating Budget/Revenues in the amount of $376,100.00, for rent payments to the District by Imperial Parking (US), Inc., dba Impark, for the eight-month period from November 1, 2011, through June 30, 2012.

The Board of Directors (Board), by Resolution No. 2009-108 at its meeting of December 18, 2009, authorized execution of a Lease Agreement between the District and Caltrans, for the lease of the SF Bus Lot, for principal use by the District as a mid-day storage facility for Golden Gate Transit buses and associated uses. The term of the lease is 25 years, at $41,922.00 per month, with two five-year renewal options, exercisable by the District.

The staff report stated that, at the time the FY 11/12 Budget was developed, the Lease Agreement with Caltrans contemplated that the District would offer the SF Bus Lot for sublease by a competitive public bid process, and that the District would not be responsible for any lease payments to Caltrans until the District completed this sublease.

Further, the Board, by Resolution No. 2011-077 at its meeting of September 23, 2011, authorized the General Manager to execute a sublease relative to Contract No. 2012-BT-3, Sublease of Lot Located at Third, Fourth, Perry and Stillman Streets in San Francisco, CA, with Impark. Effective October 1, 2011, Impark will pay the District $47,008.00 per month as rental for the SF Bus Lot, for a one-year period, or until paving improvements have been completed.

The staff report stated that any Sublease rent collected by the District in excess of the District's monthly contracted rent of $41,922.00 to Caltrans will be split on a 50/50 basis between the District and Caltrans. The difference in the rent collected by the District and the District’s rent payments to Caltrans is $5,086.00 per month, of which $2,543.00 per month, or a total of $44,465.00, will be paid to Caltrans. The fiscal impact to the FY 11/12 Budget is a revenue increase of approximately $376,100.00 and an expense increase of $355,700.00, for a net income of $20,400.00, for the eight-month period of November 1, 2011, through June 30, 2012.

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/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 a budget transfer from District Reserves to the FY 11/12 Bus Transit Division Operating Budget/Expenses in the amount of $355,700.00, to fund eight months lease payments to the California Department of Transportation, from November 1, 2011, through June 30, 2012, for the mid-day bus parking lot located at Third, Fourth, Perry and Stillman Streets in San Francisco, CA; and, authorize an increase in the FY 11/12 Bus Transit Division Operating Budget/Revenues in the amount of $376,100.00, for rent payments to the District by Impark, for the eight-month period from November 1, 2011, through June 30, 2012.

Action by the Board at its meeting of October 14, 2011 – Resolution
NON-CONSENT CALENDAR

     
    AYES (7): Directors Boro, Cochran, Elsbernd, Moylan, Pahre, Renée, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None
 
     
2. Authorize Actions Related to Grant Programs
     
  a. There were no “Actions Related to Grant Programs” to be acted upon at this meeting.
   
3.

Receive the Annual Report of the OPEB Retirement Investment Trust Board

In a memorandum to Committee, the Other Post Employment Benefits (OPEB) Retirement Investment Trust Board (Trust Board) summarized its annual review of its investment policy, service personnel and Charter.

The staff report stated that the OPEB Retirement Investment Trust (OPEB Trust) was established by the District in 2007 to provide for funding of retiree health benefits and other post-employment benefits for the District’s eligible retirees. The Trust Board oversees the investment of trust assets. As required in the Charter and Bylaws, the Trust Board must annually review the OPEB Trust investment policy, the performance of its service providers and the adequacy of the Charter. The results of this annual review must be reported to the District’s Board of Directors.

Regarding the monitoring of compliance with its Investment Policy, the staff report stated that the investment portfolio is in full compliance with the District’s OPEB Investment Policy and Trust Agreement.

The staff report listed the responsibilities of its two service providers, PFM Asset Management LLC (PFM), Investment Advisor and Trust Administrator; and, U.S. Bank National Association (U.S. Bank), Trustee and Custodian. Regarding their performance over the past year, the staff report summarized their responsibilities and stated that the Trust Board has found that both firms have fully complied. PFM, in particular, has performed well compared to its benchmarks.

Finally, the staff report stated that the Trust Board reviewed its Charter and recommended no changes at this time.

Directors COCHRAN/STROEH moved and seconded to receive the Annual Report of the Other Post Employment Benefits Retirement Investment Trust Board.

AYES (7): Directors Boro, Cochran, Elsbernd, Moylan, Pahre, Renée, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None

Action by the Board at its meeting of October 14, 2011 – Motion
NON-CONSENT CALENDAR

     
4.

Closed Session

Attorney Kimon Manolius, at the request of Chair Stroeh, stated that the Committee would convene in Closed Session, to discuss the following matters, listed on the Agenda as Item No. 4.a.:

       
    Conference with Legal Counsel – Pending Litigation
Pursuant to Government Code Section 54956.9(a)
Report of Athens Administrators, Inc.
    a. Report of York Risk Services Group, Inc.
Joseph Gonzales vs. Golden Gate Bridge, Highway and Transportation District.”
       
  After Closed Session, Chair Stroeh called the meeting to order in open session with a quorum present. Attorney Manolius reported that the Committee had met in Closed Session, as permitted by the Brown Act, to discuss the matters listed under Closed Session, outlined above. He reported that during the Closed Session, direction was provided to negotiators to continue negotiating.
       
5.

Public Comment

There was no public comment.

     
6.

Adjournment

All business having been concluded, the meeting was adjourned at 10:40 a.m.

     

 

Respectfully submitted,

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