DRAFT MINUTES Special Finance and Audit Committee Meeting Alameda-Contra Costa Transit District California School for the Blind Theater 500 Walnut Avenue Fremont, CA 94536 Wednesday, September 30, 2009 3:30 p.m. Finance and Audit Committee Members: Director Jeff Davis, Chairman Director Greg Harper Director Joel Young
The meeting was called to order at 3:54 p.m. with Chairman Davis presiding. Committee Members Present: Director Harper, Director Young and Director Davis, Committee Chair. Committee Members Absent: None. Also Present: General Manager Rick Fernandez, General Counsel Ken Scheidig, Chief Financial Officer Lewis Clinton, and District Secretary Linda Nemeroff. Public Comment There was no public comment offered. INFORMATION ITEM(S) (Consent Calendar) [Items listed under the Consent Calendar are considered to be routine and may be enacted by one motion/one vote. If discussion is desired, an item may be removed from the Consent Calendar and will be considered individually.] 1. Consider approving Finance and Audit Committee minutes of September 9, 2009. MOTION: YOUNG/HARPER to recommend approval of the minutes as presented (3).
BRIEFING ITEM(S)/ACTION ITEM(S) 2. Consider receiving monthly report on the budget and ten-year projections (GM Memo No. 09-211). Chief Financial Officer Lewis Clinton presented the staff report. Mr. Clinton advised that two columns referenced in the attachment needed to be corrected to reflect FY 09/10 instead of FY 08/09. He further indicated that the committee would receive the 1st quarter revised budget in November and advised that property tax receipts were a concern at this point in the budget process. AC Transit Finance and Audit Committee
September 30, 2009
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Director Harper stressed the importance of having accurate property tax information as soon as possible. MOTION: YOUNG/HARPER to forward to the Board of Directors recommending receipt (3).
3. Consider recommending that staff be authorized to proceed with the Prop 1A Securitization Program (GM Memo No. 09-227) [Request to forward to the Board of Directors the same day for action pursuant to Board Policy 100, Section 5.5.4]. Chief Financial Officer Lewis Clinton presented the staff report including an overview of the program and the timeline for execution of the documents associated with the District’s participation in the program. Director Harper introduced a scenario that would involve the assignment or pledge of the District’s receipts to the Retirement Board with 2% interest as a credit toward the District’s contribution. General Manager Rick Fernandez reported on the scenarios that had been presented to the Retirement Board noting the problems that could result should the State of California default. MOTION: YOUNG/HARPER to forward to the Board of Directors for same-day action recommending approval as presented (3). 4. Consider receiving report on non-traditional ways to increase advertising revenue (Requested by Director Davis – 3/11/09) (GM Memo No. 09-157). Marketing Administrator Karen Bakar presented the staff report. Director Davis requested that staff review and refine the list of proposed advertising options and provide an update and timeline in 6 months. Director Harper noted that he liked the idea and revenue potential of ad swaps and suggested the use of billboards near park and ride lots. MOTION: HARPER/YOUNG to forward to the Board of Directors recommending receipt and direct staff to provide a progress report in 6 months (3).
5. Consider recommending adoption of Resolution No. 09-050 authorizing the General Manager to submit and execute all agreements/documentation for an allocation of Regional Measure 2 (RM2) funding for the Richmond Parkway Transit Center-Phase II-Design and Engineering (GM Memo No. 09-229). There was no discussion of the item. AC Transit Finance and Audit Committee
September 30, 2009
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MOTION: HARPER/YOUNG to forward to the Board of Directors recommending adoption as presented (3).
6. Consider recommending that the General Manager be authorized to reimburse relocation expenses for the Labor Attorney position (GM Memo No. 09-234) [Request to forward to the Board of Directors the same day for action pursuant to Board Policy 5.5.4.]. Human Resources Manager Shelley Fogel presented the staff report, noting the justification for the request. Director Davis requested that the issue of creating a policy to establish a threshold for relocation expenses be agendized for a future meeting. MOTION: HARPER/YOUNG to forward to the Board of Directors for same-day action recommending that the General Manager be authorized to reimburse a maximum of $10,000 in relocation expenses (3).
7. Consider recommending adoption of Resolution No. 09-051 regarding a policy to buy American (BRD Memo No. 09-233). The General Counsel suggested an amendment to Section 1 of the resolution which would change “funding regulations” to “procurement regulations”. Director Davis indicated that while he supported the resolution in concept, he had concerns with what the meaning of the phrase “best efforts” would entail. He further indicated that any program that involved preference would be problematic to the integrity of the procurement process. MOTION: HARPER/YOUNG to forward to the Board of Directors with an amendment to Section 1 of the resolution that “funding regulations” be changed to “procurement regulations”.
Agenda Planning There were no new items added to Agenda Planning. November Amendments to Board Policy 360 – Reserve Policies (Reference: GM Memo No. 09022a) [Retained in Committee January 21, 2009 for further discussion with the actuary regarding self insurance confidence levels]. Amendments to Board Policy 312 – Budget Policy (Reference: GM Memo No. 08226a) [Referred by the Board of Directors back to the Finance and Audit Committee on August 26, 2009]. Follow up report comparing maintenance costs by type for the bus fleet (Requested by Director Harper – 5/27/09; Retained in committee 9/9/09) (Reference: GM Memo No. 09-184). AC Transit Finance and Audit Committee
September 30, 2009
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Pending Not Scheduled Report on the impact of $100+ barrel oil with emphasis on what experts think it will do to our ridership as people are faced with $4.00 to $5.00 per gallon gasoline (Requested by Director Peeples – 11/14/07) [Referred from Planning 5/28/08]. Report on unfunded liabilities related to the retirement plan and a presentation by the actuaries (Requested by Director Ortiz – 7/9/08). Report regarding the issue of not being to obtain farebox information by line and the ramifications (Requested by Director Harper – 2/25/09). Semi Annual Report Status update on the Tactical Initiatives to Address the Fiscal Deficit (Requested by Director Davis – 7/29/09). Quarterly Reports Board/Officer Travel/Meeting Expense (November – Consent) Employee Out-of-State Travel (November – Consent) Financial Performance/Quarterly Budget Update (August) Surplus/Obsolete Materials (November – Consent) Finance/Human Resources (FHR) System Implementation (November) Semi-Annual Reports (Consent) DBE/FTA Report (May/Nov) Retirement Board (July/Dec) 2009 Fiscal Policy Review (Action) Capital Project Policy 316 (April) Budget Policy No. 312 (May) Disposition of Surplus Equipment Policy 356 (May)
Annual Reports (2009) Fare Structure Update (Mar) Action Appropriations Limit (June) Action DBE Goals (July) Action Externally Funded Welfare to Work (Nov) Consent Measure AA/BB (Dec to Board) Action Year-End Audited Financial Statements (Nov) Briefing
Board/Staff Comments (Government Code Section 54954.2(a)) Adjournment There being no further business to come before the committee, the meeting was adjourned at 4:48 p.m. The next meeting of the Finance and Audit Committee is scheduled for Wednesday, October 28, 2009. Respectfully submitted,
Linda A. Nemeroff District Secretary
AC Transit Finance and Audit Committee
September 30, 2009
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DRAFT MINUTES Special Finance and Audit Committee Meeting Alameda-Contra Costa Transit District 2nd Floor Board Room 1600 Franklin Street Oakland, CA 94612 Wednesday, October 14, 2009 2:30 p.m. Finance and Audit Committee Members: Director Jeff Davis, Chairman Director Greg Harper Director Joel Young
The meeting was called to order at 2:38 p.m. with Chairman Davis presiding. Committee Members Present: Director Harper, Director Young and Director Davis, Committee Chair. Committee Members Absent: None. Also Present: General Manager Rick Fernandez, General Counsel Ken Scheidig, Chief Financial Officer Lewis Clinton, and District Secretary Linda Nemeroff. Public Comment There was no public comment offered. BRIEFING ITEM(S)/ACTION ITEM(S) 1. Consider recommending adoption of Resolution No. 09-056 authorizing the execution and delivery of a Purchase and Sale Agreement and related documents with respect to the sale of the seller’s Proposition 1A receivable from the State; and directing and authorizing certain other actions in connection therewith (GM Memo No. 09-242). There was no discussion of the item. Director Harper inquired whether the District had any general obligations that were secured by revenues. Chief Financial Officer Lewis Clinton reported that there were no dedicated revenues that were pledged to pay debt service. MOTION: HARPER/YOUNG to forward to the Board of Directors recommending adoption of Resolution No. 09-056 as presented (3).
Agenda Planning There were no new items added to Agenda Planning.
AC Transit Finance and Audit Committee
October 14, 2009
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November Amendments to Board Policy 360 – Reserve Policies (Reference: GM Memo No. 09022a) [Retained in Committee January 21, 2009 for further discussion with the actuary regarding self insurance confidence levels]. Amendments to Board Policy 312 – Budget Policy (Reference: GM Memo No. 08226a) [Referred by the Board of Directors back to the Finance and Audit Committee on August 26, 2009]. Follow up report comparing maintenance costs by type for the bus fleet (Requested by Director Harper – 5/27/09; Retained in committee 9/9/09) (Reference: GM Memo No. 09-184). Pending Not Scheduled Report on the impact of $100+ barrel oil with emphasis on what experts think it will do to our ridership as people are faced with $4.00 to $5.00 per gallon gasoline (Requested by Director Peeples – 11/14/07) [Referred from Planning 5/28/08]. Report on unfunded liabilities related to the retirement plan and a presentation by the actuaries (Requested by Director Ortiz – 7/9/08). Report regarding the issue of not being to obtain farebox information by line and the ramifications (Requested by Director Harper – 2/25/09). Semi Annual Report Status update on the Tactical Initiatives to Address the Fiscal Deficit (Requested by Director Davis – 7/29/09). Quarterly Reports Board/Officer Travel/Meeting Expense (November – Consent) Employee Out-of-State Travel (November – Consent) Financial Performance/Quarterly Budget Update (August) Surplus/Obsolete Materials (November – Consent) Finance/Human Resources (FHR) System Implementation (November) Semi-Annual Reports (Consent) DBE/FTA Report (May/Nov) Retirement Board (July/Dec) 2009 Fiscal Policy Review (Action) Capital Project Policy 316 (April) Budget Policy No. 312 (May) Disposition of Surplus Equipment Policy 356 (May)
Annual Reports (2009) Fare Structure Update (Mar) Action Appropriations Limit (June) Action DBE Goals (July) Action Externally Funded Welfare to Work (Nov) Consent Measure AA/BB (Dec to Board) Action Year-End Audited Financial Statements (Nov) Briefing
Board/Staff Comments (Government Code Section 54954.2(a)) Adjournment There being no further business to come before the committee, the meeting was adjourned at 2:42 p.m. The next meeting of the Finance and Audit Committee is scheduled for Wednesday, October 28, 2009. Respectfully submitted, Linda A. Nemeroff District Secretary AC Transit Finance and Audit Committee
October 14, 2009
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