. BOARD OF DIRECTORS ALAMEDA-CONTRA COSTA TRANSIT DISTRICT
MINUTES Special Meeting of the Board of Directors and Regular Meetings of the External Affairs and Finance and Audit Committees San leandro Cit y Council Chambers 835 East 14th Street San Leandro, CA 94577 Wednesday, October 28, 2015 at 5:00 p.m. Closed Session: 3:30 p.m. (Items 9A- 9D) Committee meetings will commence when the Board of Directors recesses to a Committee of the Whole
MEMBERS OF THE BOARD OF DIRECTORS
H. E. CHRISTIAN PEEPLES, PRESIDENT (AT-LARGE) ELSA ORTIZ, VICE PRESIDENT (WARD 3) JOE WALLACE (WARD 1) GREG HARPER (WARD 2) MARK WILLIAMS (WARD 4) JEFF DAVIS (WARD 5) JOEL YOUNG (AT-LARGE) BOARD OFFICERS
M ICHAEL A. HURSH, GENERAL MANAGER DENISE C. STANDRIDGE, GENERAL COUNS EL LINDA A. NEMEROFF, DISTRICT SECRETARY
Alameda-Contra Costa Transit District
October 28, 2015
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SPECIAL BOARD OF DIRECTORS MEETING- H. E. Christian Peeples, President Wednesday, October 28, 2015 at 5:00 p.m.
ACTION SUMMARY
i The Alameda-Contra Costa Transit District Board of Directors held a
I special meeting on Wednesday, October 28, 2015. i
I The
meeting was called to order at 3:40 p.m. for the purpose of I Closed Session. All Board members were present except Director I Williams who arrived at 4:01 p.m. and Director Davis who arrived at j 4:25 p.m. The District Secretary announced that the Board would ! convene in Closed Session to discuss Items 9A-D as listed on the ! agenda. Closed Session concluded at 4:30 p.m.
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i President Peeples called the Board of Directors meeting to order at 15:01 p.m.
1.
I ROLLCALL
! Present: Wallace, Harper, Williams, Davis, Young, Ortiz, Peeples [ Absent: None
2.
I PRESENTATION I Overview of AC Transit's Service Expansion Plan.
I Transportation
INFORMATION ONLY
Planner John Urgo presented an overview of the
I Proposed Service Expansion Plan (SEP) including a line by line overview I of changes in Central County and addressed questions from the Board I regarding specific service proposals. i
I Directed Williams asked about outreach in the hiring of bus operators I and how capacity issues would be addressed. He also wanted to know
i what outreach would be done for those lines where staff is proposing
I to eliminate service. With respect to hiring, General Manager Michael i Hursh advised that there would be outreach and that he was looking to I accelerate the staffing plan to bring new operators on board early I before Division 3 reopens. He invited the public to log onto the
i District's website and apply for jobs.
He also advised that outreach to
I the public on the new plan would be robust with seat-drops on buses, I signage at affected stops, and marketing and public outreach efforts. j
i Director Williams
also asked staff to confirm the plans for a new Line I 48 flex service. Mr. Urgo confirmed that staff would look int~ an [ expansion of flex service through a pilot starting in December.
i Vice President Ortiz asked
how long it would take to implement the [ SEP. Mr. Hursh advised that full implementation may not take place I until the latter part of 2016. Staff was still in process of determining I the timing. Alameda-Contra Costa Transit District
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A total of four persons presented comments on this item. A transcription of the comments is incorporated into the minutes as Exhibit A. The item was presented for information only. 3.
PUBLIC COMMENT Jane Kramer commented on transparency and accountability with regard to rational planning, noting that the Board purportedly pursues transit policies that fit its imaginings of what Oakland should look like in the future and are not based on reality. She cited accounts from previous meetings to support this opinion. Darlene Sanders complained about that a claim for damages she had submitted to the District as a result of an accident she was involved in had been handled poorly. She asked for the District to respond for her in this matter. (Copies of correspondence were provided to the District Secretary.)
4.
CONSENT CALENDAR MOTION: WALLACE/ORTIZ to receive or approve the items on the Consent Calendar as indicated. The motion carried by the following vote:
RECEIVED OR APPROVED AS INDICATED
i AYES:7: Wallace, Ortiz, Harper, Williams, Davis, Young, Peeples 4A. Consider receiving Accessibility Advisory Committee minutes of September 8, 2015 (Report 15-240). 4B. ! ~:::~~:~~~~=~~i.ng Retirement Board minutes of September 10, 2015
' 4C. Consider authorizing the General Manager to attend the American Public Transportation Association's 2016 Transit CEO's Seminar in Lake Buena Vista, (Orlando) Florida from January 30-February 2, 2016 {Report 15-279). 5.
i REGULAR CALENDAR
SA. Consideration of polling results associated with the placement of a measure to extend the District's existing parcel tax at current levels with no increase in District One for 20 years; polling results associated with initiating a parcel tax in Special District Two; and direct the General Manager to draft language for the November 2016 ballot {Report 15-148a).
DIRECTION GIVEN
! Director of Legislative Affairs and Community Relations Beverly Greene I presented the staff report. Alameda-Contra Costa Transit District
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MOTION: ORTIZ/WALLLACE to place a measure on the ballot to extend the current parcel tax in the same amount for 20 years and direct the General Manager to draft language for the November 2016 ballot. The motion carried by the following vote: AYES:?: Ortiz, Wallace, Harper, Williams, Davis, Young, Peeples
6.
BOARD WORKSHOP
GA. Consider receiving report on the implications of the Affordable Care Act "Cadillac Tax" on AC Transit (Report 15-242).
RECEIVED
Human Resources Manager Elisabeth West introduced Kimberly Miller of Alliant Employee Benefits who gave a presentation on the implications of the Affordable Care Act "Cadillac Tax" on AC Transit. President Peeples suggested that when the comment period opens on the procedural issues related to calculation and assessment of the tax, AC Transit should comment on it because the mortality and morbidity of bus drivers is very different from other occupations. Final regulations are expected to be determined by the end of 2016 and will go into effect in 2018. Ms. Miller further advised the Board of the estimated tax AC Transit would have to pay for current health plans offered to employees. She I advised that the District will be kept apprised of any changes to the I Affordable Care Act going forward. 1
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Director Davis felt the Board needed to determine how important this issue is in terms of its legislative agenda.
MOTION: WALLACE/WILLIAMS to receive report on the implications of the Affordable Care Act "Cadillac Tax" on AC Transit. The motion , carried by the following vote: 1
I AYES:?: Wallace, Williams, Harper, Davis, Young, Ortiz, Peeples RECESS TO STANDING COMMITTEES (as the Committee of the Whole) The Board meeting recessed to the Standing Committees at 6:09 p.m. ALL COMMITTEES ARE ADVISORY ONLY.
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A.
EXTERNAL AFFAIRS COMMITTEE- Mark Williams, Chairperson The External Affairs Committee convened at 6:09 p.m. All Committee members were present.
ACTION SUMMARY
A-1 Public Comment (for items not on the agenda) There was no public comment offered.
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Briefing/Action Items:
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A-2. I Consider recommending receipt of the monthly legislative report and ! approval of legislative positions (Report 1S-243).
RECOMMEND RECEIPT
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I Director of legislative Affairs and Community Relations Beverly Greene
I updated
the Committee on current federal and state legislative i developments.
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I Vice
President Ortiz asked why the Committee was not being asked to ! take a position on ABX1 24 (Levine): Bay Area Transportation Commission - Election of Commissioners. She reported that the bill I had come before the Alameda County Transportation Commission and ! she had abstained because AC Transit had not taken a position on it.
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I Ms.
Greene advised that even though the bill was not included in the report, staff intends to bring the bill to the Committee and will ' recommend a watch position on it. It was suggested that Ms. Greene bring the bill to the Board at its special meeting scheduled for November 4, 2015.
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Vice President Ortiz also inquired about AB 1287 {Chiu), which would I allow the City and County of San Francisco to place forward facing video cameras on buses for the purpose of ticketing vehicles parked in bus only lanes. Ms. Greene advised that staff would be proposing similar legislation for enforcement of the Bus Rapid Transit lanes for the 2016 legislative program. President Peeples felt the District's proposal should be for anyone blocking bus stops.
! MOTION:
YOUNG/PEEPLES to forward to the Consent Calendar Addenda recommending receipt. The motion carried by the following vote: AYES:7: Young, Peeples, Wallace, Harper, Ortiz, Davis, Williams
A-3. Consider recommending receipt of report on the 2015 General Public Perception Study {Report 15-216}.
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RECOMMEND RECEIPT
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[A brief PowerPoint Presentation was given at the meeting and is incorporated into the file by reference.] Director of Marketing and Communications Michele Joseph presented the staff report. Director Davis noted that while District 2 was not going to have a parcel tax measure in the near future, he would like to see more of a marketing and education campaign in District 2 in preparation for a future measure. He also requested to see how District 2 faired in the study. Ms. Joseph advised that the statistics will be broken down by District 1 and District 2 and will be provided to the Board. Director Harper commented on the slide that discussed negative perceptions of AC Transit, noting that accidents, violence and pedestrians getting hit were the most negative. He added that the attorney involved in a lawsuit against the District that had recently settled made a strong statement in the press that AC Transit allows bad drivers to continue driving when they shouldn't. Given that the District has had multi-million dollar claims in recent years, he wanted to know if the Board could hire an outside auditor or coordinate with the General Counsel to address the issue. General Manager Michael Hursh advised that in our society, it was very difficult to get the media to focus on positive accomplishments.
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MOTION: YOUNG/HARPtR to forward to the Consent Calendar Addenda recommending receipt. The motion carried by the following : i vote: AYES:6: Young, Harper, Ortiz, Davis, Peeples, Williams ABSENT:l: Wallace (out of seat)
A-4. Consider recommending receipt of semi-annual status update on the planning process for the next generation of Clipper (Report 15-244).
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RECOMMEND RECEIPT
Chief Information Services Officer Tom O'Neill presented the staff report. Director Davis asked for clarification of some of the terminology used in the report. MOTION: ORTIZ/PEEPLES to forward to the Consent Calendar Addenda recommending receipt. The motion carried by the following vote: AYES:7: Ortiz, Peeples, Wallace, Harper, Davis, Young, Williams
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A-5. Consider review of Board Policy 126 - Elections: Statement of Qualifications Costs and determine whether or not to recommend amendments to the policy (Report 15-239).
RECOMMEND AMENDMENTS
District Secretary Linda Nemeroff presented the staff report. Director Young proposed an increase in the Ward fee by $200 to $800 and an increase in the At-large fee by $400 to $2,800. [Note: later in 1the discussion of this item, the amount of the fee increase for at-large ! candidates was misstated as $600. The vote below reflects the corrected amount.] MOTION: YOUNG/HARPER to forward to the next Board of Directors meeting recommending an increase in the Ward fee by $200 to $800 ! and an increase in the At-large fee by $400 to $2,800. The motion i carried by the following vote: AYES:4: Young, Harper, Ortiz, Williams NOES:3: Wallace, Davis, Peeples ! The External Affairs Committee adjourned at 6:43 p.m.
B.
FINANCE AND AUDIT COMMITIEE- Jeff Davis, Chairperson The Finance and Audit Committee convened at 6:43 p.m. All Committee members were present.
ACTION SUMMARY
B-1.. Public Comment (for items not on the agenda) ! i There was no public comment offered.
Consent Items: Members of the Committee had questions on Items B-2, B-3, and B-4 (see below).
li MOTION:
RECOMMEND RECEIPT, APPROVAL OR ADOPTION AS INDICATED
WILLIAMS/ORTIZ to forward to the Consent Calendar ' Addenda recommending receipt, approval or adoption as indicated. The motion carried by the following vote: AYES:7: Williams, Ortiz, Wallace, Harper, Young, Peeples, Davis
B-2. Consider recommending receipt of the Bi-monthly Budget Update for the period of July and August 2015 (Report 15-247).
I i Vice
President Ortiz asked why the timing of receipts caused an ! unfavorable variance in the Contract Services Account. Interim Chief I Financial Officer Jim Pachan explained that this was related to the Alameda~Contra
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receipt of BART transfer revenue which is expected, but had not yet been received. B-3. Consider recommending receipt of the Monthly Report Investments for the month of August 2015 (Report 15-245).
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B-4. Consider recommending adoption of Resolution No. 15-043 authorizing the General Manager or his designee to file and execute applications and funding agreements with the California Department of Transportation for allocations of FY 2015-16 Low Carbon Transit Operations Program funds for the East Bay Bus Rapid Transit project; to provide Certifications and Assurances and assign the General Manager, or his designee, as the authorized agent for the funds (Report 15-252). Chair Davis asked about an increase in contingency for the BRT Project, assuming that the increase in contingency is equal to the amount being applied for through the grant. Capital Planning and Grants Manager Chris Andrichak reported that there are contingency requirements for certain stages of the project and the funds would be used to bring up the contingency level for Bid Package 3. B-5. Consider recommending that the General Manager or his designee be authorized to partner with the San Mateo County Transit District and the Alameda County Transportation Commission to submit an application to the California Department of Transportation (Caltrans) for a FY 2016-2017 Caltrans Sustainable Transportation Planning Grant to support the Dumbarton Bridge Corridor study, including options to enhance the Dumbarton Express Service (Report 15-255). Chair Davis asked why AC Transit's local match was only $30,000 for a $900,000 study. Capital Planning and Grants Manager Chris Andrichak responded that the $30,000 local match was AC Transit's share in the partnership agreement. Briefing/Action Items: B-6. Consider recommending receipt of the Year-End Financial Statements and Independent Auditor's Report for the Fiscal Year Ended June 30, 2015 (Report 15-246).
RECOMMEND RECEIPT
Controller Ralph Martini presented the staff report and introduced Diana Rodriguez and David Alvey of Maze & Associates to provide an overview of the financial statements. Ms. Rodriguez reported that her firm issued an unmodified opinion, which is the cleanest opinion the District can receive. She added that the major change this year was related to the implementation of GASB 68 and 71 surrounding pension Alameda-Contra Costa Transit District
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liabilities. There were no other significant changes to the report. Internal controls were found to be adequate and a management letter has been issued with no material weaknesses detected and no significant deficiencies to report. She thanked staff for their cooperation during the audit. Chair Davis commented that fare revenue was flat even though ridership was up. Interim Chief Financial Officer Jim Pachan responded that as a result of the fare changes that were made last year, fare revenue was up 3.3%. Chair Davis also inquired about fringe benefits and requested a more detailed analysis ofthe increase in fringe benefits at a future meeting. MOTION: PEEPLES/ORTIZ to forward to the Consent Calendar Addenda recommending receipt. The motion carried by the following vote: AYES:7: Peeples, Ortiz, Wallace, Harper, Williams, Young, Davis
Items 8-7 and 8-8 were discussed concurrently. B-7. Consider recommending approval of amendments to Board Policy 326 -Disadvantaged Business Enterprise Policy (Report 15-248}.
RECOMMEND APPROVAL
B-8. Consider recommending approval of amendments to Board Policy 351
RECOMMEND APPROVALW/ MODIFICATIONS
-Small and Small Local Business Procurement Policy (Report 15-249}. Contracts Compliance Administrator Phillip McCants presented the staff report. Vice President Ortiz asked questions about some of the technical aspects ofthe Board Policy 326. President Peeples expressed a need for a Croson study, noting that 'I number of ethnic organizations had expressed a need for AC Transit to have one. Mr. McCants explained that under Federal Transportation Administration rules, the District can conduct a Croson study or identify another regional disparity study. He further advised that he identified another study conducted by Valley Transportation Authority that he ! planned to utilize. President Peeples asked how the District could use a nine-county study when the policy limits the local area to the District's boundaries. Mr. McCants explained that the point of using all nine counties in a disparity study is because contractors that we use are from all Bay Area , counties. ! Alameda-Contra Costa Transit District
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In addition, President Peeples commented that the FTA had relaxed its locality discrimination rules and wanted to know where this was reflected in the policy. Mr. McCants responded that local hire regulations apply to contractors who hire labor for projects as opposed to the policies which pertain to contractors. With regard to fiscal impact, President Peeples cited an example where an agency broke down each physical light rail stop into a separate contract which resulted in increased costs for oversight and quality control. He did not see this scenario acknowledged in the reports. Mr. McCants noted that AC Transit does not have to unbundle contracts to satisfy the objectives of the policy. Chair Davis asked for clarification regarding the use of ward boundaries to define the local area. President Peeples felt that use of the word "wards" in the policy was very confusing and he opposed it. He felt it was more appropriate to say the "District". MOTION: WILLIAMS/PEEPLES to forward Board Policy 326 to the Consent Calendar Addenda recommending approval and Board Policy 351 to the consent calendar addenda recommending approval with an amendment to replace the references to "wards" with "the District". The motion carried by the following vote: AYES:7: Williams, Peeples, Wallace, Harper, Ortiz, Young, Davis The Finance and Audit Committee adjourned at 7:15p.m.
! RECONVENE BOARD OF DIRECTORS MEETING I H. E. Christian Peeples, President I The Board of Directors meeting i members were present. 7.
ACTION SUMMARY
reconvened at 7:15 p.m. All Board
I REPORTS OF STANDING COMMITTEES
REPORT GIVEN
\ District Secretary linda Nemeroff reported that all of the items from I the External Affairs and Finance and Audit Committee meetings were ' . i referred to the Consent Calendar Addenda recommending receipt, I approval, or adoption as presented with the following exceptions:
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Finance and Audit Item B-8 was forwarded to the Consent Calendar Addenda recommending approval with an amendment to replace the references to "wards" with "the District"; and External Affairs Item A-5 was forwarded to the next Board meeting recommending an increase in fees by $200 for ward candidates and $400 for at-large candidates.
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8.
CONSENT CALENDAR ADDENDA MOTION: ORTIZ/DAVIS to receive, approve or adopt the items referred to the Consent Calendar Addenda as indicated, including approval of Item B-8 amended to replace the references to "wards" with "the , District". Item A-5 was referred to the next Board of Directors meeting. The motion carried by the following vote:
RECEIVED, APPROVED OR ADOPTED AS INDICATED
AYES:7: Ortiz, Davis, Wallace, Harper, Williams, Young, Peeples
A. ::~:::L::::::b:~:~l:::ard were I
as follows:
A-2.1 Consider receiving the monthly legislative report and approval of 1 legislative positions (Report 15-243). A-3. Consider receiving report on the 2015 General Public Perception Study , (Report 15-216). I A-4. [ Consider receiving the semi-annual status update on the planning i process for the next generation of Clipper (Report 15-244). A-5. Consider review of Board Policy 126 - Elections: Statement of Qualifications Costs and determine whether or not to amend the policy ! (Report 15-239).
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B. I FINANCE AND AUDIT COMMITIEE: B-2. i Consider receiving the Bi-monthly Budget Update for the period of July and August 2015 (Report 15-247). B-3. Consider receiving the Monthly Report on Investments for the month of August 2015 (Report 15-245). B-4. Consider adoption of Resolution No. 15-043 authorizing the General Manager or his designee to file and execute applications and funding 1 agreements with the California Department of Transportation for allocations of FY 2015-16 Low Carbon Transit Operations Program I funds for the East Bay Bus Rapid Transit project; to provide Certifications and Assurances and assign the General Manager, or his designee, as the authorized agent for the funds (Report 15-252). B-5. Consider authorizing the General Manager or his designee to partner with the San Mateo County Transit District and the Alameda County Transportation Commission to submit an application to the California Department of Transportation (Caltrans) for a FY 2016-2017 Caltrans Sustainable Transportation Planning Grant to support the Dumbarton Bridge Corridor study, including options to enhance the Dumbarton Express Service (Report 15-255). 1
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B-6. Consider receiving the Year-End Financial Statements and Independent , Auditor's Report for the Fiscal Year Ended June 30, 2015 (Report 15! 246).
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B-7. Consider approving amendments to Board Policy 326- Disadvantaged Business Enterprise Policy (Report 15-248). B-8. Consider approving amendments to Board Policy 351- Small and Small local Business Procurement Policy (Report 15-249).
9.
CLOSED SESSION/REPORT OUT General Counsel Denise Standridge reported out as follows:
NO REPORT GIVEN
MOTION: ORTIZ/WALLACE to approve settlement in the amount of $1,500,000 for the Claim of Sause v. AC Transit, Claim No. 14-4042. The motion carried by the following vote: AYES:4: Ortiz, Wallace, Peeples, Young NOES:1: Harper ABSENT:2: Williams, Davis
9A.
Conference with Legal Counsel- Existing Litigation (Government Code Section 549S6.9 (a)) Scott v AC Transit, ACSC RG14733686, Claim No. 13-4S89
98.
Conference with Legal Counsel- Potential Litigation (Government Code Section S4956.9(b)) (Two Cases)
9C.
Conference with Labor Negotiators (Government Code Section 54957.6): Agency Designated Representative: General Manager Employee Organizations: ATU Local 192, AFSCME Local 3916, IBEW Local 124S, • Unrepresented Employees
9D.
Public Employee Performance Evaluation (Government Code Section 54957) Title: General Manager, General Counsel, District Secretary
10.
AGENDA PLANNING Referred to Operations Committee Director Harper requested a report on whether claims the District has systemic problems with its bus operators have any merit. (President Peeples concurred noting it may be a Closed Session item). Director Wallace wanted to know 1) who is responsible for cleaning the bus shelters at the Eastmont Mall, and 2) what needs to be done to keep all bus shelters clean. (Director Williams concurred) President Peeples requested car cards on buses when there are marathons cutting off large portions of our service. (No concurrence voiced)
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I President
Peeples req uested that the Board discuss withdrawing the application to host the CTA annua l conference in 2016. {N o concurrence voiced)
I 1
I Referred to the Finance and Audit Committee
I Director Davis asked for an ana lysis of our fringe benefit costs over the 11.
I prior year and what trends are. {Director Young concurred). I
I GENERAL MANAGER'S REPORT The General Manager's report is incorporated into the file by reference I as Staff Report 15-284.
INFORMATION ONLY
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12. ! BOARD/STAFF COMMENTS J
Members of the Board commented on meetings and events attended
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I since the last meeting. 13.
I ADJOURNMENT
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There being no further business to come before the Board of Directors, the meeting was adjourned at 7:36 p.m. The next meeting of the Board of Directors is scheduled for November 11, 2015.
I Respectfully submitted,
~~ District Secretary
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