#l BOARD OF DIRECTORS ALAMEDA-CONTRA COSTA TRANSIT DISTRICT
MINUTES SpeciaIMeeting of the Board of Directors ACTransit General Offices 2ndFloor Board Room ].600 Franklin Street Oakland, CA 94612 Wednesday, November 16, 2016 at 5:00 p.m
MEMBERS OF THE BOARD OF DIRECTORS H
E. CHRISTIAN PEOPLES, PRESIDENT (AT-L.ARGO)
ELSAORTIZ,VICEPRESIDENT(WARD 3) JOEWALLACE(WARD I) GREGHARPER(WARD 21 MARKWILLIAMS(WAR0 41 JEFFDAVIS(WARD 5) JOELYOUNG (AT-LARGE) BOARD OFFICERS
MICHAEL A. HURSH, GENERAL MANAGER DENISE C. STANDRIDGE, GENERAL COUNSEL
LINDA A. NEMEROFF, DISTRICT SECRETARY
Teleconference Director Mark Williams 6867 FM 726S Gil mer, Texas
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SPECIALBOARDOF DIRECTORS MEETING-- H. E. Christian Peeples. President ..]Qrgg!!$!day,November 16, 2016 at 5:00 p.m.
SUMMARY
The Alameda-Contra Costa Transit District Board of Directors held a special meeting on Wednesday, November 16, 2016. Prior to the start of the meeting, General Counsel Denise Standridge
confirmed that all requirements of the Ralph M. Brown Act (Govt. Code Sections 54950, et seq.) and the provisions of Board Policy 100, Section 4.8 regarding teleconferenced meetings were met in order for Director Williams to participate in the meeting and advised that all votes must be taken by roll call vote. [An cl]ffdav/t verifying that the teleconference location was accessible to persons with disabilities and that the agenda was posted at the teleconference location at least 24 \ hours prior to the start of the meeting is attached as Exhibit A.]
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The meeting was called to order by President Peeples at 5:01 p.m
Items were taken out of order, but are reported in sequential order in the minutes for ease in reading.
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ROLL CALL
Present: Wallace, Harper, Williams, Davis (arrived at 5:13 p.m.), Young,Ortiz, Peeples 2
PRESENTATION
Veteran's Day Commemoration Video.
INFORMATION ONLY
General Manager Michael Hursh introduced the video and thanked all veterans including those on the Board for their service. He also
thanked the Board for restoring Veteran's Day as a holiday for employees. 3.
PUBLICCOMMENT No public comment was offered
4.
MODIFICATIONS TO THEAGENDA
MOFICATIONS ANNOUNCED
President Peeples advised that this item was added to the agenda to allow Board members to move items around on the agenda or to allow the General Manager to announce when outside presenters are in attendance and request that an item be moved up on the agenda. President Peeples announced that Item 6H(legislative report) would be moved up earlier in the agenda.
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CONSENT CALENDAR I RECEIVED 0R MOTION: WALLACE/HARPER to receive or approve the items on the I APPROVEDAS Consent Calendar as indicated. The motion carried by the following INDICATED
I
vote
AYES:6:Wallace, Harper, Williams, Young, Ortiz, Peeples ABSENT:].: Davis 5A.
Consider approving Board of Directors minutes of October 26, 2016
5B. I Consider receiving Retirement Board minutes of September 27, 2016 (Report 16-264).
5C. iConsider receivingthe FY 2016-17 First Quarter Travel and Meeting ExpenseReportfor Directors and Board Officers (Report 16-265). 5D. iConsider receiving the Report on Investments for the Month of September 2016(Report 16-267). 5E. I Consider receiving the Quarterly Report on the Status of Contracts and Purchase Orders over $50,000(Report 16-268).
5F. IConsider receiving the FY2016-17 First Quarter Surplus and Obsolete Materials Report(Report 16-269). 5G. Consider approving the FY 2017-18 annual budget development processand calendar(Report 16-273). 5H. IConsider receivingthe Disadvantaged Business Enterprise(DBE) Semi-
annual PaymentReport for the Period of April 1, 2016 through September 30, 2016( Report 16-278). 51
Considerreceivingthe Quarterly Report on the District's Involvement in ExternalPlanning Processes(Report 16-270).
5J
Considerauthorizing the General Manager to provide free bus service
on NewYear'sEvebetween the hours of 8:00 p.m. on December31, 2016 and unti15:00 a.m. on January 1, 2017(Report 16-262). 6.
i REGULAR CALENDAR
Operations Items: 6A. I Consider receiving monthly update on the Division 3 Rehabilitation Project (Report 16-277).
RECEIVED
SeniorProject Manager MichaeIHass presented the staff report
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Director Young inquired about the outstanding issue with the City of Richmond and the budget for the Project. Mr. Hass advised that the District felt the City's fee for the building permit was excessive and still under negotiation. General Manager Michael Hursh advised that he
haddiscussed the issuewith the City and wastold the fee was a standard fee the City charges, but the issue remained under review. With regard to the budget, Mr. Hass reported that upon completion, staff expected the project to be under budget by approximately $200,000. MOTION: PEEPLES/ORTIZ to receive the monthly update on the Division 3 Rehabilitation Project. The motion carried by the following vote AYES:7:Peeples, Ortiz, Wallace, Harper, Williams, Davis, Young 6B
Consider approving award of a construction contract to State Roofing Systems,Inc. for the replacement of the Transportation Building roof at the Emeryville Division (Report 14-312a).
DIRECTION
GIVENTO INVESTIGATE ALTERNATIVES
SeniorProject Manager Joe Callaway presented the staff report.
Director Harper asked if a foam roof had been considered. Mr.
Callaway advisedthat staff had not studieda foam roof. but could investigate it to determine if it was a feasible option. If it were feasible. Mr. Callaway advisedthat the project would have to be re-bid.
MOTION:HARPER/PEEPLES to direct staff to investigate the feasibility of a foam roof alternative and report back to the Board with the findings. The motion carried by the following vote: AYES:7:Harper, Peeples,Wallace, Williams, Davis, Young, Ortiz 6C.
Consider authorizing the release of a solicitation for a qualified
APPROVED
vendor to provide high quality professionaluniform rental and laundry cleaning services for AC Transit maintenance, materials and print shop employees(Report 16-297). There was no presentation of the staff report
MOTION:YOUNG/ORTIZ to authorize the release of a solicitation for a qualified vendor to provide high quality professional uniform rental and laundry cleaning services for AC Transit maintenance, materials and print shop employees. The motion carried by the following vote: AYES:7:Young, Ortiz, Wallace, Harper, Williams, Davis, Peeples
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6D. I Consider receiving the Quarterly Operations Performance Report for AC Transit Fixed Route Services (Report 16-280).
RECEIVED
ChiefOperating Officer James Pachanpresented the staff report. He addresseda question about lines requiring scheduleadjustmentsto improve on-time performance, advising that the Scheduling Departmentwas already looking at lines that have had problems duringthe reporting period, such as buses that are getting stuck in traffic. He added that changes in the Collective Bargaining Agreement regarding the scheduling of layover and relief time would improve ontime performance, reduce stress on operators, and hopefully improve attendance
Concernswere raised about operator availability, and the District's ability to control it. l\dr. Pachan advised that it was difficult to control unscheduledtime off, especially when coupled with federal and state mandated programs and increased sick leave usage. Members of the Boardrequested that staff report on whether the problem was being generatedby a few operators or was indicative of a more widespread problem as well as a comparison of the absenteeism rate between other employee groups and other transit agencies. Mr. Pachanadvised that specific details willbe provided in a future report. MOTION: ORTIZ/PEEPLESto receive the Quarterly Operations PerformanceReportfor ACTransit Fixed Route Services. The motion carried by the following vote: AYER:7:Ortiz, Peeples, Wallace, Harper, Williams, Davis, Young
finance and Audit Items:
6E.IConsider receiving the Year-End Financial Statementsand
RECEIVED
Independent Auditor's Report for the FiscaIYear Ended June 30, 2016 (Report 16-258). Controller Ralph Martini introduced the item and called upon Brad
Schelle,Senior Audit Manager with Crowe Horwath, to give an overview of the scope of the work performed. He called attention to the IndependentAuditor's Report, noting that Crowe Horwath had providedan unmodified opinion, which meant that there were no material misstatements in the financial statements. He also discussed i total assets, deferred outflows and inflows pertaining to pension, changesin assumptions, Other Post-Employment Benefits (OPEB),and deficienciesfound. Discussion ensued regarding OPEB and the appearance that that the District's defined contribution plans seem to be expressed as defined benefit plans in the financial statements. Mr. Martini explained that Alameda-ContraCostaTransit District
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the trust was a definedcontribution plan, however,GASB43 and 45 went into effect whichconstruedit in a way that looks like a defined I benefit plan becausethe District should be contributing the arch defined by the actuariesrather than the dollars per hour the District contributes, which doesn't cover the cost. President Peeplessuggested that the issue be agendized because it needs to be recognized in union negotiations as an additionalcost that needs to be put on the unions if GARBhasforced the Districtto changeit from a defined contribution to a defined benefit plan. Director Harper was equally concerned about the issue,noting that he wanted to know if there was also a legalissue Mr. Schelle called the Board's attention to GASB 75, which would require the District to record a liability for the difference between the amount of assets and the actuarial liability for OPEB. He added that I while OPEBliabilities would be shown on the financial statements. it
was not a liability the District had to plan to fund, becauseit was something that would project over many years as most OPEBplans are funded on as pay-as-you-gobasis.
Director Harper commented that the District needed to get control of its costs in order to remain sustainable in the long-term and it was up to the Board to figure it out in cooperation with the General Manager and FinanceDepartment. Director Young acknowledged cost controls,
but also suggestedthat a strategy be developed to obtain more revenue
MOTION:ORTIZ/PEEPLES to receive the Year-End FinancialStatements and IndependentAuditor's Report for the FiscalYear EndedJune 30. 2016 Themotion carriedbythe following vote: AYES:7:Ortiz, Peeples, Wallace, Harper, Williams, Davis, Young
PlanningItems: 6F.
Consider receiving a presentation on the Transbay Transit Center Project, and authorize the General Manager to send a letter to the Transbay Joint Powers Authority (TJPA) confirming the District's
APPROVED
commitment to the Bus Storage Facility lease, operations and maintenance costs(Report 16-274). Senior Transportation Planner Linda Morris presented the staff report and introduced Ronald Alameida of San Francisco Public Works who presented an update on the progress of the Transbay Transit Center
Project. Also present was Mark Zabaneh, Executive Director of the TJPA
Vice President Ortiz was surprised to learn that the District was not moving into the terminal until 2018, not 2017 as agreed. Mr. Zabaneh Alameda-ContraCostaTransit District
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reported that substantialcompletion was expected by December 2017, i adding that they would ]ike to start training in mid-20].7 provided that
the contractorcould make room for it, and start bus operationsin December 2017/January 2018. Ms. Morris advised that discussions had begun internally on the transition process, noting that operator
training would take three months and the District wanted to start I operations on a service change, which would occur in either December
20].7 or March 2018. The 2018 date had been mentioned in the previousquarterly reports to the Board.
Director Harper asked if the District could operate without full use of the storage yard and the ramp to the bus level, adding that AC Transit
neededto know if it would have to operate less service in the new terminal than what is currently being provided in the temporary terminal. Mr, Alameidaadvisedthat he would presentsome ideasto the TJPABoard in December on how to activate the building and better understand constraints. President Peeples was direct in pointing out that the AC Transit Board
of Directorshad been very clear in sayingthat it would not move out of the temporary terminal until the Bus Storage Facility and Transbay Terminalwas fully operational. Mr. Zabaneh reported that construction on the Bus Storage Facility would not begin until mid-2018 and would not be complete until late 2018/early 2019. President Peeples confirmed that AC Transit would not be moving out of the temporary
terminal until that time and it was not the District'sproblem. Mr. Zabaneh explained that it was a problem for allconcerned because the
terminalwould be avaliable for use by other transit operatorsand work could not start on the Bus Storage Facility until a proper lease was secured from the state. President Peeples explained that the District had held its position on the matter for a long time and the requirement
was written into the agreementwith the TJPAand would not be revisited. Mr. Zabaneh expressed a desire to discuss it further with the
District. Director Harper added that there was pressure from the surrounding neighborhood in San Francisco to get the buses off the street and felt the District needed to strike a balancewith the City as a major fu nder of the project.
President Peeplesinquired about the bridge cable stays given the I moisture issuesthat have developed with the cable stays on the
easternspanof the Bay Bridge. Mr. Alameidaadvisedthat the two bridgeswere very different and recent articles comparing the two structures were not based on reality even though the bridges looked similar.
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President Peeples asked Mr. Zabaneh about the status of the $300
millionin fundsfrom the city of SanFrancisco for the project. Mr. Zabanehresponded that the item could be reconsidered in December.
Lastly, President Peeplesasked about the security features for the building and cost estimates for security personnel. Mr. Zabaneh advisedthat initial estimates called for 71 security personnel,but the number was reduced to 65 and consisted of a blended team of Sheriff's
personneland private security guards costing about $6.5 million. In addition, staff is assessinghow much of the operational costscould be offset by sponsorship and naming rights, park activation and retail. The
new terminal would also employ the latest advancesin security technology. Director Harper added that the District needed to have a best, middle and worst case scenario for what the operational costs would be. Mr. Zabaneh advised that he would work closely with the GeneraIManager to build on the successof the Bus Storage Facility.
Public Comment: Jerry Grace commented that the discussion about the construction of the project was confusing to hlm. MOTION:ORTIZ/WALLACE to receive a presentation on the Transbay Transit Center Project, and authorize the General Manager to send a
letterto the TransbayJoint PowersAuthority confirmingthe District's commitment to the Bus Storage Facility lease, operations and maintenance costs. The motion carried by the following vote: AYES:7:Ortiz, Wallace, Harper, Williams, Davis, Young, Peeples 6G
Consider receiving report on service changes associated with the DecemberSign-up(Report 16-276).
RECEIVED
[A revisedstaff report was presented at the meeting for the Board's
cons/deut/on./i
Service Planning Manager Michael Eshleman presented the staff report. He also addressedquestions regarding the Line 47 extension.
the Division3 sign-up, andcommunication of routechanges to the public.
MOTION: YOUNG/ORTIZ to receive report
on service changes
associatedwith the DecemberSign-up. The motion carried by the following vote: AYES:7:Young, Ortiz, Wallace, Harper, Williams, Davis, Peeples Alameda-ContraCostaTransit District
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ExternalAffairs Items: 6H. I Consider receiving the Monthly Legislative Report and approve legislative positions(Report 16-272).
RECEIVED
Director of Legislative Aff airs and Community Relations Beverly Greene presented the staff report.
She congratulated
members of the Board
who were re-elected and announced the successful passage of Measure CI, the extension of the District's existing parcel tax. She further reported on the status of other localmeasures. Vice President Ortiz thanked everyone for their support of Measure CI and those who worked on the campaign.
MOTION:WALLACE/ORTIZto receive the Monthly Legislative Report Themotion carriedby the following vote: AYES:6:Wallace, Ortiz, Harper, Williams, Young, Peeples ABSENT:].: Davis
DirectorWilliams left the meeting at 7:19 p.m Administrative Matters: 6
Consider authorizing Director Young to attend the International Zero
APPROVED
EmissionBusConference and Fuel Cell Bus Workshop on November 30, 2016 to December 1, 2016, in London, England; and meetings and tours at RATPand Transdev in Paris, France the week of December 5, 2016(Report 16-238).
DistrictSecretary Linda Nemeroff presented the staff report President Peeples commented on the importance of the conference,
notingthat he planned to attend it, but would do so at his own expense. He added that it posed a good opportunity to see what was happening throughout the world with zero emission technologies.
MOTION:PEEPLES/YOUNG to authorize Director Young to attend the International Zero Emission Bus Conference and Fuel Cell BusI
Workshopon November30, 2016to December1, 2016, in London,I England.Themotion carried by the following vote: AYES:4:Peeples,Young, Harper, Davis NOES:2:Wallace,Orb z ABSENT:l:Williams
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7A.
CLOSED SESSION/REPORT OUT At 7:40 p.m., the Board convened in Closed Session to discuss Items 7A-7Das listed on the agenda. Director Harper left the meeting at 8:40 p.m. ClosedSessionconcluded at 8:55 p.m. There was nothing to report out of ClosedSession.
NO REPORT
Conferencewith LegalCounsel- Existing Litigation (Government Code Section 54956.9(a))
- ,Adams,Gere/d/ne v. ,4Ctrans/t, WCAB Case No. ADJ8204614
Quarterly Litigation Report - /Vewton v. ,4C trans/t, ACSCNo. RG13-667254 - /Wa/onev. ,4C trans/t, ACSCNo. RG14-720784 - ./ones v. ,4C Trans/f, ACSCNo. RG15-772831 - Edwards v. ,4C Trans/t, et a/., U.S. Dist. Ct. (No.CaI.Dost.) No C15 05578VC - Z.overtv. ,4C Trans/f, ACSCNo. RG15-773830 - ,Ahmad v. ,4C Trans/t, ACSCNo. RG15-794461 - 4goro v. ,4C Trans/t, ACSCNo. RG16-830160 Freeman v. .4C Transit, ACSCNo. RG].3-683635 B
Evansv. ,4CTrans/t, ACSCNo. RG16-825093 7B
Conference with Legal Counsel -- Potential Litigation (Government Code Section 54956.9(b)I (Two Cases)
7C
Conferencewith Labor Negotiators I(Government Code Section 54957.6): Agency Designated Representative: GeneraIManager
Employee Organizations: ATU Local 192, AFSCME Local 3916, IBEWLocal 1245, Unrepresented Employees 7D
Public Employee Performance Evaluation (Government Code Section 549571 Title: General Manager, General Counsel, District Secretary
8.
f AGENDA PLANNING
There were no new items added to agenda planning 9
GENERAL MANAGER'S REPORT
The General Manager's report was presented for information only and is incorporated into the file by reference as Staff Report 16-298. 10
INFORMATION ONLY
BOARD/STAFF COMMENTS
Members of the Board commented on meetings and events attended sincethe last meeting.
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ADJOURNMENT There being no further business to come before the Board of Directors, the meeting was adjourned at 8:55 p.m. The next meetir)g of the Board of Directorsis scheduled for Wednesday, December14, 2016 at 5:00 p.m
Respectfullysubmatted,
LindaA. Nemeroff, DistrictSecretary
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