February 9, 2012

 

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, February 9, 2012, at 11:10 a.m., Chair Stroeh presiding.

Committee Members Present (9): Chair Stroeh; Directors Cochran, Eddie, Elsbernd, Grosboll, Moylan and Sobel; Vice Chair Pahre; President Reilly (Ex Officio)
Committee Members Absent (0): None
Other Directors Present (5): Directors Arnold, Fredericks, Renée, Sears and Snyder

Committee of the Whole Members Present (14): Directors Arnold, Cochran, Elsbernd, Fredericks, Moylan, Pahre, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
Committee of the Whole Members Absent (5): Directors Campos, Chu, Mar, Rabbitt and Theriault

Staff Present: General Manager Denis Mulligan; Auditor-Controller Joseph Wire; District Engineer Ewa Bauer; Secretary of the District Janet Tarantino; Attorney Madeline Chun; 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)
  There were no "Budget Adjustment(s) and/or Transfer(s)" to discuss.
     
2. Authorize Actions Related to Grant Programs
  There were no “Actions Related to Grant Programs” to discuss.
   
3. Authorize Concurrence of the Bay Area Toll Authority's Contract Change Order with ACS State and Local Solutions, Inc., for Implementation of the All Electronic Tolling Payment Processing Framework and Cash Payment Network

In a memorandum to Committee, Auditor-Controller Joseph Wire and General Manager Denis Mulligan reported on staff’s recommendation to approve the Contract Change Order between the Bay Area Toll Authority and ACS State and Local Solutions, Inc., in the amount of $610,460.00, for implementation of the all electronic tolling (AET) payment processing framework and cash payment network.

Since 2004, the Golden Gate Bridge, Highway and Transportation District (District) has been a partner with the Bay Area Toll Authority (BATA) for the operation and management of the FasTrak® Regional Customer Service Center (CSC), which manages automated toll collection and processes all toll violations for Bay Area toll facilities. Pursuant to the Cooperative Agreement between the District and BATA for joint management of the CSC (Cooperative Agreement), BATA is the Contracting Agency for all regional CSC contracts.

The Board of Directors (Board), by Resolution No. 2009-036 at its meeting of April 10, 2009, authorized concurrence with a four-year extension of the Contract between the BATA and ACS State and Local Solutions, Inc. (ACS), for operation of the CSC, which expires in May 2013; and, by Resolution No. 2010-030 at its meeting of April 9, 2010, authorized Traffic Technologies, Inc. (TTI), to prepare a strategic development plan for all electronic toll collection on the Golden Gate Bridge.

The staff report stated that the Board, by Resolution No. 2011-068 at its meeting of July 8, 2011, approved the AET payment processing framework in preparation for contract negotiations with the CSC vendor, ACS, regarding the scope and cost of implementation, and the contract negotiations are now complete. The staff report further stated that BATA now seeks authorization of a contract change order to commence design and development of new toll payment processing and cash payment network functionality, with the participation of District and BATA staffs, and technical support from TTI. Pursuant to the Cooperative Agreement, all contract changes that affect the scope of services offered by both organizations must be approved by both governing bodies.

The staff report estimated the total cost for AET payment processing implementation and 19 months operating costs to be $5,600,856.00 ($860,460.00 capital improvements, and $4,740,396.00 operating expenses) for the period from December 2012 to June 2014, with the District to be responsible for $610,460.00 in capital costs and $4,512,969.00 in estimated operating expenses, and BATA to cover the remainder of the costs.

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, Electronic Revenue Collection Program Manager David Dick briefly summarized the staff report, stating that the District will no longer have any manual toll collection once AET is implemented. New payment options required for the public due to the cut-over to AET will be automated toll payment based on a license plate account and invoice-based toll payment based on the vehicle license plate number. Those services will be provided by this change order, as well as a cash payment network with retail locations throughout the Bay Area and North Bay for use by those individuals who choose cash payment of tolls.

He stated that these new payment options are expected to be available for soft launch in December 2012, with full cut-over scheduled for February 2013. He noted that the February 2013 implementation date is a few months later than originally planned. However, with the execution of this contract change order, a timeline for completion can be prepared as this contract change order is the last remaining contract to be let for AET.

He reported that estimated net operating savings is expected to be approximately $3.5 million over the 19-month period from December 2012, through June, 2014. He concluded by stating that BATA presented this contract change order to its oversight committee on February 8, 2012, at which time it was approved.

Staff recommended and the Committee concurred by motion made and seconded by Directors SOBEL/COCHRAN 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 a Contract Change Order between the Bay Area Toll Authority (BATA) and ACS State and Local Solutions, Inc., pursuant to the Cooperative Agreement between BATA and the Golden Gate Bridge, Highway and Transportation District for joint management of the FasTrak® Customer Service Center, in the amount of $610,460.00, for implementation of the all electronic tolling payment processing framework and cash payment network; with the understanding that requisite funds are available in the FY 11/12 Bridge Division Capital Budget.

AYES (12): Directors Arnold, Cochran, Elsbernd, Fredericks, Moylan, Pahre, Renée, Sears, Snyder, 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 February 10, 2012 – Resolution

       
4.

Public Comment

There was no public comment.

     
5.

Adjournment

All business having been concluded, the meeting was adjourned at 11:20 a.m.

     

 

Respectfully submitted,

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