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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 12/03/2003 oi9202t, REGIONAL TRANSPORTATION AUTHORITY BOARD OF DIRECTORS' MEETING 'c.; JAN 2004 ' WEDNESDAY, DECEMBER 3, 2003 I RECEIVED t CITY SECRETARY'S OFFICE �,� SUMMARY OF ACTIONS 1. . Provided Opportunity for Public Comment �'£_ zt�� 2. Heard Presentations on Portfolio Management Services 3. Awarded Portfolio Management Services for the Defined Benefit Plan to Wells Fargo 11. Authorized Entering into a One-Year Agreement with the South Texas Military Facilities Task Force in the Amount of$25,000 7. Heard Update on RTAC Committee Activities 14. Confirmed RTAC Appointments (Marvin Rush, Fernando Acosta) 4. Held Public Hearing on Proposed RTA 2004 Operating and Capital Budget 5. Adopted the 2004 Operating and Capital Budget with an Amendment to. Fund Incentive Program . 6. Approved the Board of Directors' Minutes of November 5, 2003 8. Authorized Issuing Request for Proposals for a Fixed Route and Demand-Responsive Transportation Services Contract 9. Authorized Entering into an Inter-Governmental Agreement with the City of Robstown for the Construction of Transit-Related Improvements for the New.Boys and Girls Club Facility 10. Authorized Entering Into an Agreement with the City of Corpus Christi in the Amount of$20,000 for r the Completion of a Master Plan for the Downtown Area 12. Approved a Contract for Unleaded and Diesel Fuel 13. Accepted Committee Reports 15. a) Authorized the First of Two Option Years for Tire Leasing Services to Bridgestone/Firestone Tire Company b) Approved Siemens Software Agreement for Fiscal Year 2004 c) Approved the Third Quarter Investment Report for Defined Benefit Plan d) Approved the Third Quarter Investment Report for Defined Contribution Plan e) Approved Changes to Investment Options to the RTA Defined Contribution Plan f) Approved the Adoption of a Resolution Amending the RTA Drug and Alcohol Policy . g) Approved the October 2003 Financial Report 16. Heard Update on B-Line Issues 17. Heard General Manager's Report SCANNED } gional Transportation Authority Of Directors Meeting Minutes December 3,2003 Page 2 The Regional Transportation Authority Board of Directors met at 8:30 a.m. in the Regional Transportation Authority Facility located at 5658 Bear Lane, Corpus Christi, Texas. Board Members Present: Mike Rendon (Board Chair), Vicki Garza (Board Vice- Chair), Abel Alonzo, Carmen Arias, Rolando Barrera, John Buckley, Anna M. Flores, • David Martinez, Stan Terry Board Members Absent: John Corder (Board Secretary), Abel Herrero Staff Present: Linda Watson (General Manager), David Seiler, Vangie Chapa, Elias Sissamis, Ed Carrion, Beth Vidaurri, Chuck Trexler, Kevin Bunce, Ricardo Sanchez, Pat Collins, Linda Falwell-Stover, Stuart Sher, Sylvia Mendez, Sylvia Castillo, Fred Haley, Dianne Garcia, Lamont Taylor Public Present: Alex Lodde, Brenda Fernandez, Dawn Rasmussen, MV Transportation; Eloy Soza; Gary Malone, Ellen Scott, Jim Chapman; Dale Cloud, Charles Linn, Wells Fargo; Priscilla Leal; Edith Gallardo, Laura Brown, Sam Boldrick The Trust Co.; Frank Gamez, Edgar Kieschnick, Insurance Center; Diane Staley, RTAC; John Gaona; Greg Salazar, David Garcia, Teamsters 1110; George Torrez, Steve Dalton, Julian Cardenas, Adella Resendez, Oralia Martinez, Fernando Acosta, Greg Goodman, Alan McClain, Stabil Capital; Tom Niskala, C C Chamber of Commerce; Gwen Reynolds; Abel Garza; Peter Melve; Cecilio Aguilar; William Quiroz; Sylvia Martinez; Alan Wulkan, PB Consult; Gary Bushell, South Texas Military Task Force; Carrol Torres, C. C. Firefighers; Gabriela Strange, Univision; Manuel Venegas Jr, Channel 6; Roland Garza, Ramona Sawyers, Lupe Salazar, Antonio Olivas, Diana Olivas, Bobby Cloud; Maria Stanford; Pablo Lara; Rose Lara; Jerry'Pantoja, RTAEA; Debra Garcia; Rosie Aguiar; Manuel Garcia; PaUla Wakefield, City of Robstown Call to Order The Board of Directors' meeting was called to order by Mr. Rendon at 8:50 am. The.invocation was delivered by Mr. Barrera. Opportunity for Public Comment Mr. Rendon called for public comment from the audience. Mr. Soza expressed his solidarity with the bus drivers and the RTAEA Association. Presentations on Portfolio Management Services egional Transportation Authority ��«rd Of Directors Meeting Minutes December 3,2003 Page 3 Mr. Rendon stated that the Investment Committee, consisting of four Board members, had reviewed the five proposals submitted. The Committee chose the top two companies to make presentations to the Board for award of the contract. He explained that each company would make 15-minute presentations with 5 minutes for summation, and then the floor would be open for questions. The first company to make a presentation was the Trust Company. The presentation team, as introduced by Ms. Laura Brown, Manager of Institutional Trust Service, was comprised of Mr. Sam Boldrick, Chief Investment Officer, founding member of the Trust Company and current Board of Directors member; and Ms. Edith Gallardo, Manager of Trust Operations who worked with reporting and processing of retirement plans. She explained that Mr. Charlie Wade, Chief Executive Officer, was not present because he was serving on a jury. Ms. Brown stated that the Trust Company received their bank charter in June 1997. They were structured as a national bank and regulated by the Office of the Comptroller of the Currency and subject to both State and Federal judiciary law. They were headquartered in San Antonio with offices also located in Corpus Christi, Texas. She stated that she was familiar with the RTA retirement plan because she had been employed with M Bank and had worked with RTA staff when they established the retirement plan. She stated that the Trust Company was founded to provide a personalized level of service that smaller banks were able to offer clients and had structured their service to avoid any conflicts of interest. Continuing with the presentation, Ms. Brown stated that the company's first responsibility to the RTA was to provide a comprehensive asset allocation plan and that samples had been provided to the Investment.Committee. An asset allocation study, which would include input from the Investment Committee, the Board of Directors and RTA staff, would be used to develop a well-defined plan that would be incorporated into an investment policy statement. The company's philosophy was that the investment policy statement should be reviewed and adjusted based on market conditions. Diversification was the goal to providing the return and long-term goal anticipated from the plan. Mr. Boldrick explained that the investment process consisted of four distinct sections which were: 1) the selection of independent managers; 2) the on-going monitoring of the managers; 3) the on-going implementation of management strategy which included rebalancing individual accounts in the hypothetical portfolios; and 4) the investment reporting process which utilized an outside independent source. He further explained that the Trust Company Investment Committee was comprised of ten individuals with extensive investment experience and was headed by Mr. Dan Butt, Chairman of the Company. The Committee held quarterly meetings to review account managers' performance. To ensure quality service, the managers were selected by the Investment Committee and an outside consultant. •The consultant's quarterly audited performance statement showed the account status on an asset-by- asset basis. Additional duties of the Committee., as stated by Mr. Boldrick, were the ;.egional Transportation Authority ��ard Of Directors Meeting Minutes December 3,2003, Page 4 on-going implementation of the investment strategy, portfolio rebalancing, quarterly reviews of the portfolio to initiate changes if required, and issuance of investment reports to clients. Ms. Gallardo stated that if their company were chosen, she would be coordinating the conversion process. She said that she had been with the company for five years.. She produced reports for upper management and the Board of Directors and provided Internet accessfor key personnel. • Ms. Brown explained that the entire conversion process would take about 30 days with the actual transfer of securities to take place in a matter of days. Directing attention to the fee schedule located at the back of their brochure, Ms. Brown stated that a discount from the fee schedule presented at the Investment Committee on November 11, 2003 was being submitted. She explained that the original investment management fee was 56.175 basis points and that it had been negotiated down to 45 basis points; and that the custodial fee would remain at 30 basis points. Based on $11 million in assets, the fee schedule would be $82,500. She concluded by saying that the Trust Company used independent money managers and the performance measurement was provided by a third party in an effort to provide the best service and to deliver the best investment product to their clients. Responding to Mr. Buckley, Ms. Brown stated that they did not utilize mutual funds: They used Common Trust Funds, which are similar to mutual funds but are managed by independent money managers. Mr. Alonzo commented on the lack of diversity on the Board of Directors. Ms. Brown explained that the company was a privately owned company and the shareholders comprised'the Board. Mr. Barrera noted that the Board was comprised of two femalesand that minority expertise in this area in general was not abundant. In response to Mr. Rendon, Ms. Brown stated that the company managed about $450 million in assets. Under the institutional employee benefit category, they had approximately 120 clients with' about 70 corporate clients. The second company to make a presentation was Wells Fargo. Mr. Cloud, using a PowerPoint presentation outlined the three different components of their proposal. The first was the financial security and soundness offered by Wells Fargo. He noted that for 2003 Moody's Investors Service had upgraded the organization's credit rating to AAA and that Wells Fargo was the only bank in the USA with that rating. He explained that the rating related to business integrity as well as the financial security offered to clients. 'He overviewed accreditations from various organizations. which he stated demonstrated their diversity in services as well as products offered. He stated that Wells Fargo had over 75 years of experience with over 1,600 team members in over 70 national offices and they were a top ten trustee with over 9,000 ;gional,:Transportation Authority L.,..:d.Of Directors Meeting Minutes December 3,2003 Page 5 plans. Their scope of size provided security and stability to RTA and the retirement plan. The second component was their investment management standpoint. Mr. Cloud acknowledged that the proposal was for portfolio management of both equities and fixed income. He pointed out that Wells Fargo has been ranked among the top ten tactical asset allocation managers in the country. They manage discretionary assets of over$180 billion with over$3.5 billion in public fund dollars:similar to the RTA's plan. He stated that dedicated client service would be provided by Ellen Scott, Relationship Manager for the current RTA 401A plan and that she would continue in that capacity and that Chuck Linn would continue to serve as investment manager. They would attend meetings to discuss performance, monitor investment policy and make Board presentations as directed by the RTA Board of Directors. Mr. Cloud overviewed detailed resumes of the centralized management team consisting of Jim Chapman, Ellen Scott, Charles Linn and himself, Dale Cloud. He further explained that Mr. Galen Blomster, DFA, Director, Asset Allocation, was a critical participant in the asset allocation philosophy and model. He stated that the proposed model for RTA provided for 60% equity and 40% fixed income components. The third component, as stated by Mr. Cloud, was the fee structure. He stated that the portfolio would not have an explicit administrative fee. The fees related to their services for portfolio management were simply the expense ratios of the various mutual funds. He noted that compared to the original proposal various administrative charges related to pension payment and wire distributions had been. changed. In summary, Mr. Cloud stated that their portfolio models for actively managing the RTA portfoliowere proprietary in nature. He said that Wells Fargo would be using some of the most sophisticated technology as well as some of the best people in the industry to put together a quality,product as well as quality localized service. On-line Internet access to the account would be provided. He also pointed out the similarity of RTA's organizational values compared to those of Wells Fargo, which would help create a strong partnership. Mr. Alonzo acknowledged their organization's diversity but noted the lack of representation at today's meeting. Mr. Buckley inquired about the management fees. Mr. Cloud replied that any small cap growth fund had an expense ratio prospectus of 1.29% and that their revenue was derived from the internal expense ratio of the various funds. This allows Wells Fargo to minimize administrative fees to the smallest amount and in the RTA proposal; the administrative fees are zero on the explicit hard dollar administrative charge. He further explained that the .849 basis points was the total expense ratio ;gional Transportation Authority Of Directors Meeting Minutes December 3,2003 Page 6 equating to approximately $90,000 that was being paid out of the fund performance. The performance numbers are net of those expense ratios. Responding to Mr. Buckley, Mr. Cloud stated that a seven-member in-house team would conduct the internal mutual fund analysis and report fund performance. Discussion and Possible Action to Approve Award of Portfolio Management Services for the Defined Benefit Plan Mr. Buckley noted that there was between $10,000 to $11,000 difference in fees between the two proposers and that the Trust Company was lower. He pointed out that about three years ago the Board had expressed the desire to have a smaller company handle the plan. There was a brief discussion regarding the type of services that could be provided by each firm. MS. GARZA MADE A MOTION TO APPROVE AWARD OF PORTFOLIO MANAGEMENT SERVICES FOR THE DEFINED BENEFIT PLAN TO WELLS FARGO. MS. FLORES SECONDED THE MOTION. MS. GARZA, MR. ALONZO, MS. FLORES AND MR. MARTINEZ VOTING FOR. MR. BUCKLEY, MR. BARERA, MS. ARIAS AND MR. TERRY VOTING AGAINST. MR. RENDON VOTING FOR. THE MOTION CARRIED. Discussion and Possible Action to Authorize Entering into a One-Year Agreement with the South Texas Military Facilities Task Force in the Amount of$25,000 Ms. Watson stated that both Mr. Bushell and Mr. Niskala had addressed the Administration Committee and explained that the task force's goal was to protect our military facilities in the next round of base realignments and closures. She noted the negative financial impact that would be felt by the community and also RTA sales tax revenue if the local bases were closed. The request was for $25,000 to help the task force put together information, briefing and program materials for distribution during their meetings to illustrate the need to keep the local bases open. She commented that at the Administration Committee's direction, staff had identified funding for this project from the professional services line item. MR. BARRERA MADE A MOTION TO AUTHORIZE ENTERING INTO A ONE-YEAR AGREEMENT WITH THE SOUTH TEXAS MILITARY FACILITIES TASK FORCE IN THE AMOUNT OF $25,000. MR. TERRY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. egional Transportation Authority L.,ard Of Directors Meeting Minutes December 3,2003 Page 7 Update on RTAC Committee Activities Action to Confirm RTAC Appointments (Marvin Rush, Fernando Acosta) Ms.Rosario Aguilar requested to address-the Board. She expressed her disappointment that she was ill advised because she was.told to sign in under a designated topic and that she would be able to address the Board at the beginning of the meeting. She had sat patiently waiting to address the Board but did not have too much time. Mr. Roland Garza explained that Ms. Aguilar was speaking up because the prior agenda item had been moved to accommodate Mr. Bushell's schedule and this action was insensitive to the community's needs. Mr. Barrera explained that the discussion on the budget was a very important item which deserved the Boards' full attention after routine agenda items had been addressed: Ms. Staley noted that the summary minutes of the RTAC meeting of November 20, 2003 were included in the packet. They provided information on the No Show Appeal and Eligibility Appeal meetings and discussion held regarding issuance of the. RFP for Purchased Transportation and Committee appointment recommendations. She expressed the Committee's concern that they were not consulted concerning issuance of the RFP: Ms. Staley also reported that she had met with MV representatives to talk about involving the RTAC Committee in discussions on improving service. She noted that the Committee would meet on December 18, 2003 Referencing the Committee appointments, Ms. Staley said that Armando Acosta, independent living specialist with Accessible Communities Inc., and Marvin Rush, transition counselor with Texas Commission for the Blind, were being recommended for appointment to the Committee. There were three openings and they were appointing two members because they wanted to reserve one opening for someone to represent the dialysis community which represents a large segment of the ridership. Mr. Alonzo pointed out that Ms. Saenz had applied and he felt that she should also be appointed because she was very involved as an advocate for the disabled and an . employee of the Texas Rehabilitation Commission. He expressed the opinion that the vacancy should no longer be held open. There.was a discussion regarding the Committee composition and the fact that the Committee had not been at full membership capacity for about three years. Mr. Rendon asked that at the Committee's December meeting they reconsider • keeping the vacancy open and if a representative from the dialysis community was not available, that they consider appointing Ms. Saenz. Ms. Staley stated that she would convey the Board's concern at the December RTAC meeting. ional Transportation Authority Bard Of Directors Meeting Minutes December 3,2003 Page 8 As a point of clarification, Mr. Bell stated that the Board Chairman makes RTAC appointments with confirmation by the Board of Directors. MR. TERRY MADE A MOTION TO CONFIRM THE APPOINTMENT OF MARVIN RUSH AND FERNANDO ACOSTA TO THE RTAC COMMITTEE. MS. FLORES SECONDED THE MOTION. THE MOTION CARRIED WITH MR. ALONZO VOTING AGAINST. Public Hearing on Proposed RTA 2004 Operating and Capital Budgets Mr. Rendon opened the public hearing. Ms. Watson presented a brief overview of the proposed 2004 budget. She explained that the formal budget process started with a budget workshop held in September with subsequent workshops held on October 8th and 22nd and discussion at the November 5th Board meeting. The challenges faced in developing the 2004 budget, as cited by Ms. Watson, were the leveling off of ridership and the reduction in passenger fare and sales tax revenue. She also pointed out that operating expenses had increased and in some cases significantly such as the cost of fuel and B-Line operation. She reported that a workshop during 2004 was being scheduled to look at what steps could be taken to transfer additional riders from the expensive B-Line service to the less expensive fixed route service. Continuing with her report, Ms. Watson informed the Board that every year RTA employees have received salary increases. In 2002, along with the merit increase, a market wage adjustment was approved for bus operators and mechanics which gave some employees as much as a 7% increase. Additional budgetary increases have been experienced in the area of health insurance which has risen about 23% each year over the past three years. Due to the economy, the amount contributed to the retirement fund had to be increased and it was anticipated that approximately $500,000 would be contributed in 2004. The costofmaintaining facilities has also increased. Ms. Watson noted that staff had curtailed expenses by delaying or eliminating projects. In conclusion, Ms: Watson reported that based on the Board's direction to develop a balanced budget but not reduce service or lay off employees, staff had eliminated three vacant positions, reduced temporary help across the board and proposed the 2% Cost of Living Adjustment (COLA). She noted that even if this action were approved wages would still remain competitive. Another recommendation was the streamlined incentive program which eliminated ineffective or unused incentives. ;gional Transportation Authority Of Directors Meeting Minutes December 3,2003 Page 9 Ms. Rosario Aguiar whose husband works for RTA, expressed her concern about the budget cuts especially since she had seen on television the extravagant expenses for a trip taken by RTA personnel. She stated that instead of renting two vans, maybe the participants could have used an RTA vehicle for the trip and questioned the purchase of Chivas. She challenged the Board to find out the truth. Ms. Watson clarified that the two vans Ms. Aguiar referred to were rented in Tampa, Florida to take about 15-16 people on a tour.of the streetcar system. She also noted that the participants stayed at the airport hotel instead of a downtown hotel, which resulted in savings that offset the cost of the van rentals. For the record, Ms. Watson stated that RTA funds were not used to purchase alcohol. Ms. Debra Garcia requested that the Board consider not accepting the budget cuts because it affected her family along"with the rising economy. She noted that the drivers were the backbone of the company. • Mr. Roland Garza cited the Rosa Park's story. He stated that there were laws and customs at the RTA whichkept the Association and management segregated. He read the section of the 13c agreement that stated that "the industry that received federal funds, shall preserve the rights and benefits of all employees and in no way • alter the terms and conditions of their employment or conditions of work." Hestated that thiswas mandated by.Congress and did apply at RTA. He asked why RTA workers were always considered to be wrong when in a recent case involving RTA that went before a jury the plaintiff was awarded a large sum of money which ended up costing the RTA over two hundred thousand dollars. There were four arbitration cases in Washington that would end up costing the.RTA a lot of money. Their lawyer had met with RTA's lawyer last Monday. Their lawyer indicated to RTA that it would be illegal for the Board to cut employee benefits or would run the risk of taking it to arbitration. ,Based on the alleged budget shortage, he questioned the money awarded to the Master Plan, the South Texas Military Task Force, Robstown Boys & Girls Club and spent on the streetcar trip. For the record, he asked that the Board hold off approving the budget, not take away their fringe benefits or merit increases, and give them a 2% COLA increase. He stated that RTA was the only transit agency in the State of Texas that did not have a worker relationship unilaterally approved by the Board of Directors. Mr. Antonio Olivas stated that when hewas hired by RTA four years ago, he was promised a yearly raise. He was concerned that management was proposing eliminating the raise. He said that over the years management and the Board of Directors had reduced their.benefits. He asked when it was going to stop and what would be next, possibly personal days, sick days etc. He stated that management made decisions without getting input from the employees and the employees were the ones that paid for their bad decisions. He stated that the changes wouldaffect the employees, their families, the moral which affects turnover rate and the way they treat the passengers, overtime expenses and driver shortage. • egional Transportation Authority ..svurd Of Directors Meeting Minutes December 3,2003 Page 10 Ms. Diana Olivas stated that cuts should start at the top. She cited the ridiculous amount of money spent on business trips. She felt that everyone should be required to live within a budget. She pointed out that some riders mistreated the bus operators and then to have their salaries cut was another abuse of employees. There were many good employees but that management forgot about them when they messed up on routes and the buses broke down. She suggested that the next time buses were purchased, that the person in charge know what they are doing. She said that she was tired of being abused by management and other individuals and the proposed reduction in pay lessened their worth. Mr. Roland Barrera clarified that salaries were not being cut. The recommendation was for a 2% Cost of Living Adjustment. Mr. Guadalupe Salazar, journeyman mechanic, thirteen-year RTA employee, and President of RTA Employee Association, reported.that during a labor management meeting he learned about benefits that were being implemented for employees that the workforce had not been informed about. He expressed his concern that the employees were not informed about the economic conditions. He felt that the budget cuts should be made at the topbecause of the irresponsible manner in which the budget has been handled. He also reported that Mr. Bunce, Director of Maintenance, had informed the Maintenance Department on December 1st during their lunch break that a new policy was being implemented effective that day which stated that any type of mishaps on buses, roadcalls including spills, flat tires, broken windows, windshields, body fluid spills and so forth would be held against the employees' bonus structure. He said that RTA management made the policy without Board approval and that it would have a negative economic impact. This was not the first time that management policy was implemented without employee input. He asked that management treat all employees with respect and dignity. He requested that the Board of Directors reverse the proposal presented to cut employee benefits and that all employees be given a 5% COLA and that management be directed to do whatever they needed to do to accomplish this. He stated that perhaps the Board should make changes if the person responsible for the ' budget could not do their job. In response to Ms. Ramona Sawyers, Ms. Watson clarified that merit raises were being suspended for 2004. Ms. Sawyers asked for written documentation that the merit raises would only be suspended for one year. Ms. Watson stated that the 2004 budget was the only item being proposed at this time and she could not predict future budgets. • Ms. Sawyers commented.that when she was employed by the RTA she initially ' received a $1,000 bonus, then each year it decreased. She stated that the employees needed incentives to do their job. Merit raises are given to employees to show that their work is appreciated and when you take that away you are decreasing gional Transportation Authority rsoard Of Directors Meeting Minutes December 3,2003 Page 11 their value. With the incentives currently offered, an employee has the ability to earn $2,400 in addition to their salary. Mr. Manual Garcia, a bus operator for 11, years, asked that the Board not cut the. merit increases,incentives or freeze the pay scale because of the major negative effect on RTA employees. :He approved of the 2% COLA but urged that the incentives be retained. Ms. Watson clarified that she had attended 5 to 7 quarterly meetings and given a presentation on the budget condition, tough issues that were being faced and that all areas were being reviewed in order to trim the budget. Also she had included a letter included in the employee newsletter issued with all paychecks, to the employees, informing them that it would be a very difficult budget year. She further pointed out in response to previous comments that she did not receive per diem when she traveled and if she had she would have received about $140 for meals instead of the $85 that she received as reimbursement for meal expenditures during the streetcar trip. She expressedtheimportance of being knowledgeable and gathering community support on projects that could potentially bring in $25 million to the community, such as the streetcar project. She noted that several community representatives attended the streetcar tour such as representatives from the Port Authority, the Downtown Management District, two City Council Members and others. Addressing the incentive program comment, Ms. Watson explained that approximately eight years ago the incentive program was rolled over into wages at the request of the employees. Mr. Alonzo commented on the current budget deficit and asked whom the Board was going to hold responsible, the persons who never stopped spending or those who were trying to survive. _ Mr..Terry asked what was the dollar amountof the incentives being eliminated. There was a brief discussion, and Mr.~Barrera estimated that the incentive program under discussion equaled about $30,000. .Mr. Terry asked that the incentive program be reinstated into the budget. Mr. Barrera stated that he was disappointed with management and the association representatives because there had been several public meetings to discuss the budget and they had not expressed their concerns. He commented on the rising health care cost and stated that no private employer would have absorbed the increased costs. Ms. Flores stated her concern that management and staff do not communicate. • ;gional Transportation Authority L�u:d Of Directors Meeting Minutes December 3,2003 Page 12 Mr. Alonzo stated that he felt that the policy that prohibits staff from talking to Board Members should be eliminated. Mr. Buckley stated that the budget cuts were based on reduced sales tax, health care and retirement. He expressed the need to be financially responsible and the desire that employee issues be presented early in the budget process. He pointed out that the RTA was still giving employees a raise and covering health care costs and had eliminated three upper management positions. After a brief discussion, Mr. Sissamis stated that the incentives could be reinstated and funding would come from reductions to various line items in the budget. Mr. Rendon noted that several agencies had terminated employees in order to balance the budget. He mentioned that the Federal Transit Administration had asked 250 persons to retire early and Nueces County had eliminated 142 positions. He also expressed his desire that employees voice their concerns early in the budget process. Mr. Barrera recommended that employees also look at.quantifiable benefits such as the additional $250,000 contribution to the Defined.Benefit plan. Mr. Rendon closed the public hearing and reopened the Board meeting. Discussion and Possible Action to Adopt the 2004 Operating and Capital Budgets . MR. TERRY,MADE A MOTION TO APPROVE THE BUDGET AS PROPOSED WITH ONE AMENDMENT TO FIND $30,000 TO FUND THE INCENTIVE PROGRAM. MR. BARRERA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Mr. Rendon called for a ten-minute recess. The meeting was reconvened at 12 noon by Mr. Rendon. Discussion and Possible Action to Approve the Board of Directors' Minutes of November 5, 2003 MR. BARRERA MADE A MOTION TO APPROVE THE BOARD MINUTES OF NOVEMBER 5, 2003. MS. ARIAS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. gional Transportation Authority ,,iiaid Of Directors Meeting Minutes December 3,2003 Page 13 Action to.Authorize. Issuing Request for Proposals for a Fixed Route and Demand-Responsive Transportation Services Contract MR. ALONZO MADE A MOTION TO ISSUE REQUEST FOR PROPOSALS FORA FIXED ROUTE AND DEMAND-RESPONSIVE TRANSPORTATION SERVICES CONTRACT. MR. TERRY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Authorize Entering into an Inter- Governmental Agreement with the City of Robstown for the Construction of Transit-Related Improvements for the New Boys and Girls Club Facility Ms. Watson announced that a groundbreaking ceremony would be held in Robstown on December 18, 2003 and invitations would be issued. Ms. Wakefield acknowledged Mr. Sanchez's assistance with making sure the project was in compliance with all regulations. Mr. Sanchez noted that the revised project diagrams included widened driveways and reinforced asphalt. Even though not indicated, a crosswalk would be included at Matiana Ortiz and Ligustrum to make the area ADA accessible. MR. ALONZO MADE A MOTION TO AUTHORIZE ENTERING INTO AN INTER-GOVERNMENTAL AGREEMENT WITH THE CITY OF ROBSTOWN FOR THE CONSTRUCTION OF TRANSIT-RELATED IMPROVEMENTS FOR THE NEW BOYS AND GIRLS CLUB FACILITY. MR. TERRY SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Authorize Entering Into an Agreement with the City of Corpus Christi in the.Amount of$20,000 for the Completion of a Master Plan for the Downtown Area Ms. Watson stated that City Manager Noe had attended the Administration Committee meeting. She reported that the City of Corpus Christi and the Port had participated in funding two studies for the streetcar system and this project continued the partnership. She reported that Mr. Seiler, Director of Operations, has been an integral part in developing the master plan. Mr. Rendon clarified that the Streetcar Project plans would be taken into consideration when developing the master plan. Ms. Watson stated that RTA would be an active participant in the process and that the Board would be updated periodically on the project. MS. FLORES MADE A MOTION TO AUTHORIZE ENTERING INTO AN AGREEMENT WITH THE CITY OF CORPUS CHRISTI IN THE AMOUNT OF • .gional Transportation Authority L,.xa d Of Directors Meeting Minutes December 3,2003 Page 14 $20,000 FOR THE COMPLETION OF A MASTER PLAN FOR THE DOWNTOWN AREA. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Approve a Contract for Unleaded and Diesel Fuels MR. BARRERA MADE A MOTION TO APPROVE A CONTRACT FOR UNLEADED AND DIESEL FUELS. MS. GARZA SECONDED THE MOTION: THE MOTION CARRIED UNANIMOUSLY. Action to Accept Committee Reports Mr Rendon called for additions or corrections to the Operations Committee Meeting Minutes of September 23, 2003, the Administration Committee Meeting Minutes of October 23, 2003 and the RTAC Committee Minutes of October 16, 2003. There being none the following motion was made:. MR'. TERRY MADE A MOTION TO ACCEPT THE COMMITTEE REPORTS. MR. BARRERA SECONDED THE MOTION.. THE MOTION CARRIED UNANIMOUSLY. Consent Agenda Items Mr. Rendon called for consideration of the Consent Agenda items which are of a routine or administrative nature. He asked if there were any items that should be pulled from the Consent Agenda. Therebeing none, Mr. Rendon called for a vote on the following consent items: a) Action to Authorize the First of Two Option Years for Tire Leasing Services to Bridgestone/Firestone Tire Company b) Action to Approve Siemens Software Agreement for Fiscal Year 2004 c) Action to.Approve the Third Quarter Investment Report for Defined Benefit Plan d) Action to Approve the Third Quarter Investment Report for Defined Contribution Plan e) Action to Approve Changes to Investment Options to the RTA Defined. Contribution Plan, f) Action to Approve the Adoption of a Resolution Amending the RTA Drug and Alcohol Policy g) Action to Approve the October 2003 Financial Report regional Transportation Authority Huard Of Directors Meeting Minutes December 3,2003 Page 15 MS. GARZA MADE.A MOTION TO APPROVE CONSENT AGENDA ITEMS 15a THROUGH 15g. MS. ARIAS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Update on B-Line Issues Reporting on November productivity, Ms. Fernandez stated that on-time performance was 95.79% compared to 95% for October; passengers per hour was 2.52 compared to October at 2.6; service hours were 2.68; and there were 2 denials compared to 6 in October. • Reporting on various issues, Ms. Fernandez informed the Board that they had issued their first newsletter. The newsletter did not have a name and a contest to name the newsletter was being held. They had held a Thanksgiving luncheon for their employees and some RTAC members had served as dessert judges. An employee appreciation Bar-B-Q would be held today. Due to payday falling after the Christmas and Thanksgiving holidays, they would be issuing paychecks the Wednesday before the holiday. Ms. Edna Arredondo had been named Customer Service Representative. MV staff had accompanied Mr. Haley, RTA Director of Service Development, on customer outreach projects. She noted MV Transportation's home office support for the local paratransit operation. Mr. Lodde, Chairman and Majority Owner of MV Transportation, commented that his company had been working hard to improve service and felt that they were reaching their goal. He noted thatthe productivity numbers for November were contract compliance and that the previous contractor in November 2002 had 48 denials. He voiced his desire to achieve zero denials in the month of December. He stated his commitment to ensuring that the contract was a success. General Manager's Report Ms. Watson reported that Mr. Seiler was working with the City on the South Central Area Development Plan which was the master plan for the downtown area. She noted the significance that the RTA had been included in the planning stages and credited Mr. Seiler with the success. Reporting on the Streetcar project, she pointed out that the Corpus Christi Caller Times had a positive article covering the meeting held on Tuesday, December 2, 2003 on station locations. She would be attending an APTA Program Planning meeting December 4th and 5th and as Vice President of APTA's Human Resources Committee she would also be meeting with the Assistant Director of the Department of Labor to discuss establishing transit training programs and projects to bring management and labor • egional Transportation Authority Doard Of Directors Meeting Minutes December 3,2003 Page 16 together. The Committee was working on setting up a March meeting with the Director of the Department of Labor. Ms. Watson announced that RTA had received a $500,000 grant from a FHWA account for the Streetcar Project for preliminary engineering. She was informed that the grant would be 100% federal money and would not require a local match. She asked that those present thank Congressman Ortiz for helping to bring the funding to the community.. Mr. Rendon, had donated turkeys for an employee drawing during RTA's Thanksgiving celebration. Responding to Mr. Alonzo, Mr. Bell stated that the RTA was not in violation of the 13C Agreement as proclaimed by the RTAEA Association. Ms. Watson reported that since January she had been attempting to meet with RTAEA Association representatives and had been successful in setting up a meeting for Friday, December 12, 2003. There being no further business, the meeting was adjourned at 10:06 a.m. i(1/16X1- V). /Aed.-I • Anna M. Flores • Board Secretary Date