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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 05/12/2004 ,,.. ,,... ,REGIdNAL"TRANSPORTATION AUTHORITY`"..,0%1121314 a6y $ BOARD OF DIRECTORS MEETINGct4'V WEDNESDAY, MAY 12, 2004 ^ ' Co JUN 2004 SUMMARY OF ACTIONS M RECEIVED CITYSECREI'ARY'S 1. Heard Presentation on City of Corpus Christi's Bayfront aster ME iv 2. Approved the Board of Directors' Minutes of April 7, 2004 40 4t 3. Heard Update on RTAC Committee Activities 4. Accepted Committee Reports 5. Awarded a Contract to Whiting Systems, Inc. for Procurement and Installation of a Replacement Bus Wash 6. Awarded a Contract to Dailey & Wells Communication for a Supply and Service Agreement for the Purchase and Installation of Replacement Mobile and Supervisory Voice Radios 7.. Approved First Quarter Defined Benefit Investment Reports . • 8. Approved First Quarter Defined Contribution Investment Reports 9. Authorized Payment to Cummins Southern Plains, Inc. in the amount of $39,150 for Unwarrantable Inspections and Repair Services Related to Damaged Opus Bus Engines 10.Approved the First One Year Option with Life Re for Dental Insurance and Authorized RTA to Contribute Monies to Cover the Cost Increase 11.Approved Implementation of a Trial Period Application of the Advance Reservations Policy for Paratransit Service 12.Adopted an Updated RTA Investment Policy and a List of Authorized Brokers/Dealers and Designated Investment Officer • 13.Approved the January, February, and Mach 2004 Financial Reports 14.Heard B-Line Report 15.Heard General Manager's Report 16.Authorized the Board Chairman to Appoint a General Manager Selection Committee 17.Appointed Ricardo Sanchez as Interim General Manager • **** ****** **** *** ****** ***** * ** ***** ***** ** **** ** ** * *** * 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; Vicki Garza, Abel Alonzo, Abel Herrero, John Corder, David Martinez, Roland Barrera, John Buckley, Carmen Arias Board Members Absent: Anna Flores Staff Present: Linda Watson, David Seiler, Ed Carrion, Vangie Chapa, Fred Haley, Sylvia Castillo, Sylvia Mendez, Stuart Sher, Elias Sissamis, Lamont Taylor, Chuck Trexler, Linda Falwell-Stover, Gayle Knight Public Present: Roland Garza, Yolanda Olivarez, Ron Massey, Chuck Linn, Ellen Scott, Georgia Neblett; Brenda Fernandez Call to Order SCANNED RegionalTransportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 2 The Board of Directors' meeting was called to order at 8:35 a.m. Ms. Yolanda Olivarez with Wells Fargo thanked the Board for the award 'of Bank Depository Services contract. She reported that the RTA's transition to Wells Fargo had gone smoothly. She provided the Board with Wells Fargo promotional items as a small token of their appreciation. Presentation on City of Corpus Christi's Bayfront Master Plan City of Corpus Christi Assistant City Manager Ron Massey first provided background on the Bayfront's history and reviewed several previously proposed concepts. He cited examples of successful waterfront developments of comparable size and noted their components, which included separate pathways for passive (walking) and active (cycling, rollerblading) activities; designated special event/festival areas; and shade producing landscaping. He reported the findings of a questionnaire and public workshop, which determined the following public criteria for the space: improved parking, more green park-like settings, additional amenities, and upgraded marina. Based on these findings and a strength and weakness assessment of the area, architects have formulated four potential scenarios. Mr. Massey briefly outlined the major characteristics of each proposal: Mr. Alonzo requested a.schedule of all future presentations. . .. . . Discussion and Possible Action to Approve the Board of Directors' Minutes of April 7, 2004 MS. GARZA MADE A MOTION TO APPROVE THE BOARD OF DIRECTORS' MINUTES OF APRIL 7, 2004. MR. MARTINEZ .SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Update on RTAC Committee Activities Ms. Staley provided a brief summary of the April 15, 2004 RTAC meeting. She announced a vacancy on the RTAC Committee and noted that the Committee hoped to issue a recommendation for that position by next month. She also stated that the RTAC Committee supports the 90-day trial period for the three day advanced reservation policy. Ms. Staley reported that Customer Assistance Forms were up by 30% as compared to the same timeframe last year; however, she clarified that several of the forms were commendations. Mr. Alonzo requested that future reports distinguish between commendations and complaints. Action to Accept Committee Reports Regional Transportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 3 MS. ARIAS MADE A MOTION TO ACCEPT COMMITTEE REPORTS. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Consent Agenda 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. Hearing none, he then called for a vote on the following consent items: a. Action to Award a Contract for the Procurement and Installation of a Replacement Bus Wash at Bear Lane , b. Action to Award a Sole Source Contract to Dailey & Wells Communication for a Supply and Service Agreement for the Purchase and Installation of Replacement Mobile and Supervisory Voice Radios MS. GARZA MADE A MOTION TO APPROVE CONSENT AGENDA ITEMS 5A AND 5B. MS. ARIAS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Approve First Quarter Defined Benefit Investment Reports Mr. Linn provided a summary of the Defined Benefit Plan's performance during the first quarter of 2004. He reported that the portfolio value at close of first quarter was $11,582,699.61. This reflected a positive year-to-date return of 1.49%. Mr. Buckley expressed concern that during the first quarter all but two of the benchmark funds outperformed the account's investments. Mr. Linn responded that the statement was not a true measure due to Wells Fargo not acquiring the account's funds from the prior agent until January 6, 2004. He estimated that if Wells Fargo had been in possession of the account on January 1, 2004, another 1.5% would have been earned, thus performing above most of the benchmarks. Mr. Alonzo questioned the reason for the delay in transferring funds and asked how much that cost the RTA. Mr. Linn was unaware of the reason for the delay in such a standard-procedure. He-estimated-the-5-day-delay-cost-the-account-approximately $100,000. Mr. Barrera asked Mr. Bell what if any legal recourse was possible against the prior agent's errors and omissions statement. Mr. Bell stated recourse might be possible depending on the nature of the circumstances surrounding the transfer. MR. MARTINEZ MADE A MOTION TO APPROVE FIRST QUARTER DEFINED BENEFIT INVESTMENT REPORTS. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Regional Transportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 4 Discussion and Possible Action to Approve First Quarter Defined Contribution Investment Reports Ms. Scott reported that Wells Fargo added three new investment choices to the defined contribution plan in December. Staff and Wells Fargo then met with all RTA employees to advise them of these new options and other general information on managing their accounts. MR. MARTINEZ MADE A MOTION TO APPROVE FIRST QUARTER DEFINED CONTRIBUTION INVESTMENT REPORTS. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Authorize Payment to Cummins Southern Plains, Inc. in the Amount of $39,150 for Unwarrantable Inspections and Repair Services Related to Damaged Opus Bus Engines Mr. Alonzo noted a discrepancy between initial estimates of a $50,000 repair cost and this request for a $39,150 payment. Mr. Bunce clarified that this payment to Cummins Southern Plains was part of the $50,000 total repair cost paid to Cummins and also included in-house repair costs for the 17 damaged buses to date. Further, Mr. Bunce stated he anticipated additional costs associated with these busses. Mr. Alonzo asked if the RTA could forego the costly repairs. Mr. Bunce responded that since federal law mandates the RTA use the vehicles for 12 years or 500,000 miles, repairs must be made to continue service to riders. Mr. Alonzo inquired as to the nature of the materials found in the damaged busses. Mr. Bunce reported that independent lab analysis had determined the material to be sandblasting media used to remove rust and corrosion from metal parts in the shop. Ms. Watson announced that the Crime Stoppers programs is currently offering a reward of up to $5,000 for information leading to the arrest and conviction of persons responsible for the damaged busses. She stated that the Corpus Christi Police Department (CCPD) interviewed nine employees in connection with this situation. All but one of the nine employees agreed to a polygraph interview. In addition, the Police Department reported that one of the employees who did comply with the polygraph test was-fou nd-to-have-intentionally-attempted-to-skew-the-resu Its-and-was-classified-as-non- cooperative. asfound-to-have-intentionally-attempted-to-skew-the-results-and-was-classified-as-non- cooperative. Mr. Alonzo asked why more employees did not undergo polygraph tests. Ms. Watson cited CCPD's limited time and resources as a factor. She clarified that CCPD does not have jurisdiction over an internal organizational situation. , , Mr. Herrero asked if payment of this item would void the extended warranty. Mr. Bunce stated the existing warranty pertaining to the engines' oiling systems, which is where the I 1 e R - - " gional Transportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 5 damage occurred, would not be warranted. He pointed out that the fuel system and electrical system warranties are still valid. Mr. Barrera asked how soon after receipt of the busses did a problem become apparent. Mr. Bunce reported each bus underwent an oil change upon its arrival at RTA with no problems noted. By the time the first problems surfaced, the busses had already undergone their second and third oil changes and gone approximately 12- 16,000 miles. After each oil change, oil samples are routinely sent off for analysis. None of those analysis determined any abnormality. Mr. Rendon and Ms. Garza suggested that the Authority review the option of hiring a private investigator to investigate this issue since this type of situation fell outside the local police department's jurisdiction. Mr. Alonzo suggested involving federal authorities since the busses damaged were purchased with federal funds. Mr. Rendon requested that Mr. Bell determine the RTA's options in pursuing these suggestions. He,then called for any public comment on this item. Mr. Garza addressed the Board and distributed copies of the police report on the bus damage investigation. Citing his experience in auto mechanics, he disputed Mr. Bunce's statement that sandblasting media could be found in the extreme heat conditions of a vehicle's engine. He questioned several maintenance procedures that had been changed during the course of this investigation. Mr. Garza expressed concern that more non-RTEA members were not also questioned regarding this incident. MR. BARRERA MADE A MOTION TO AUTHORIZE PAYMENT TO CUMMINS SOUTHERN PLAINS, INC. IN THE AMOUNT OF $39,150 FOR UNWARRANTABLE INSPECTIONS AND REPAIR SERVICES RELATED TO DAMAGED OPUS BUS ENGINES. MS. GARZA SECONDED THE MOTION. MR. ALONZO VOTED AGAINST. ALL OTHER BOARD MEMBERS PRESENT VOTED FOR. THE MOTION CARRIED. Discussion and Possible Action to Approve the First One Year Option with Life Re-for-Dental-Insurance Ms. Mendez reported that the RTA currently offers its employees dental coverage through Life Re. The contract was originally awarded in 2003 as a one-year contract with two one-year renewal options. The first year is scheduled to expire on May 31, 2004. The renewal option offered by Life Re on March 29, 2004, were: 1) renewal with a 10% rate increase with no changes in plan design; or 2) renewal at a 0% increase, moving endodonic and periodonic care to the major restorative benefit category, payable at 50%. Regional Transportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 6 Staff conducted an informal survey of all employees to determine if employees were willing to absorb the increased premium to maintain the current benefits level. A majority of 81 respondents were willing to absorb the costs. If approved, effective June 1, 2004, employees would see a monthly increase of $1.65 for employee coverage and $4.40 for family coverage. If the RTA chooses to absorb the increase for employees, a savings of $4,158 will need to be identified in the 2004 budget. The RTA could also choose to share increased costs with employees, requiring a savings of $1,246 to be identified in the 2004 budget. Ms. Watson noted that due to increased fuel and maintenance costs a budget amendment may be presented to the Board and the increase in dental coverage cost could be incorporated into the amendment. Mr. Alonzo suggested that the RTA absorb this increase for employees since it was not that significant an increase and such a gesture might improve employee morale. Mr. Corder noted a relatively high cost for minimal coverage and asked if the RTA had any other coverage options. Ms. Mendez noted that this was an option year and no other bids had been secured. Mr. Alonzo asked why RTA had not gone out for bids on this item. Ms. Mendez stated that even with the increased cost proposed for the option year, the Life Re proposal was better than what the other companies' had submitted last year. MR. BARRERA MADE A MOTION TO EXERCISE THE OPTION YEAR AND AUTHORIZE RTA TO ABSORB THE INCREASED COST. MS. ARIAS SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Award a Long Term Disability Insurance Contract Ms. Mendez reported that the current contract offered through Prudential Insurance would expire on May 31, 2004. The RTA had issued a Request for Proposal and four bids were received. Unum Provident submitted the most competitive cost proposal. They submitted the proposal directly to RTA through three local agents. The RTA Contracts Coordinator has advised that if the contract is awarded to Unum Provident, the three—agents—listed—in—the—contract would—be—the—agents—of—record—and the- commission would be divided between the agents. Mr. Barrera noted that the proceeds from this contract were nominal and further reduced with the three-way commission split. He suggested that perhaps Unum had submitted the proposal with the expectation that the RTA would choose one of the three brokers. Ms. Mendez stated that no such stipulation was in the proposal. Mr. Bell stated that if each of the three brokers had submitted proposals separately, the RTA could choose between them. However, since Unum submitted one proposal with three Kegional.Transportation Authority .,. Board Of Directors Meeting Minutes May 12,2004 Page 7 brokers listed, RTA must award to Unum and abide with their proposal which listed three agents as agents of record. Mr. Rendon noted a decision must be made at the meeting due to the current coverage expiring at the end of the month. He requested staff allow approximately two months for Board or Committee discussion on such items in the future. MR. BARRERA MADE A MOTION TO AWARD A LONG-TERM DISABILITY INSURANCE CONTRACT TO UNUM PROVIDENT WITH THE STIPULATION THAT THE INSURANCE COMPANY CHOOSE ONE BROKER, IF POSSIBLE, UNDER . THEIR PROCEDURES. MR. BUCKLEY SECONDED THE MOTION. MR. ALONZO, MR. HERRERO VOTING AGAINST. ALL OTHERS VOTING FOR. THE MOTION CARRIED. Mr. Herrero expressed concern over the RTA interfering with a private company's commission policy. Discussion and Possible. Action to Approve Implementation of a Trial Period Application of the Advance Reservations Policy for Paratransit Service Mr. Seiler emphasized that the proposed changes are necessary to improve paratransit service, not to penalize B-Line riders. The changes would reduce same day cancellations, multiple trip reservations, no shows, cost and would ultimately improve service efficiency. Ms. Knight announced that the trial period would be from June 1, 2004 through August 31, 2004. Monthly reports would be provided to RTAC and the Board. Currently, B- Line trips may be scheduled 1-14 days in advance; whereas, under the proposed pilot project, trips will be scheduled 1-3 days in advance. Extensive community outreach, including mass mailouts, flyers on B-Line busses, and information in the B-Line newsletter, has been scheduled. MR. ALONZO MADE A MOTION TO APPROVE IMPLEMENTATION OF A TRIAL PERIOD APPLICATION OF THE ADVANCE RESERVATIONS POLICY FOR PARATRANSIT SERVICE. MS. GARZA SECONDED° • THE MOTION CARRIED UNANIMOUSLY. Discussion and Possible Action to Adopt an Updated RTA Investment Policy and a List of Authorized Brokers/Dealers and Designate Investment Officer MR. BARRERA MADE A MOTION TO ADOPT AN UPDATED RTA INVESTMENT POLICY AND A LIST OF AUTHORIZED BROKERS/DEALERS AND DESIGNATE DIRECTOR OF FINANCE AS INVESTMENT OFFICER. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. • Regional Transportation Authority Board Of Directors Meeting Minutes May 12,2004 Page 8 Discussion and Possible Action to Approve the January, February, and March 2004 Financial Reports Mr. Sissamis reported several key aspects of the reports: January and February sales tax revenues were $177,000 higher than the same period last year; fuel is $25,000 over budget due to increased fuel prices; B-Line activities are $14,000 under budget; workers compensation is $18,000 higher than budget; parts is $56,000 over budget due to damaged busses and premature engine/transmission failure. MR. BARRERA MADE A MOTION TO APPROVE THE JANUARY, FEBRUARY, AND MARCH 2004 FINANCIAL REPORTS. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. B-Line Report Ms. Fernandez reported B-Line had a very busy month in March with 14,556 trips in addition to 1,073 ADART scheduled trips. They had 0 denials and 2.64 passengers per hour. She stated that MV would be conducting extensive outreach in conjunction with the advance reservation trial period. General Manager's Report Ms. Watson invited the Board to attend the RTA Bus Roadeo to be held Sunday, May 16, 2004 with a picnic immediately following. She also announced the 2004 Harbor Ferry Kick-Off would be held Friday, May 28, 2004. at the Solomon P. Ortiz Center Plaza. Ms. Watson reported the Corpus Christi City Council had approved closing the Alameda Street overpass to initiate construction on the Livable Communities Initiative improvements. The City Council had passed a resolution supporting the streetcar project; however, they stipulated they did not want their support to be seen as an indicator of a financial commitment. Two council members indicated they were willing to include support of the project in the bond package later this year. Opportunity for Public Comment There was no public comment. Closed Session for Discussion and Possible Action in Open Session Concerning Resignation_of_Gener_al_Manager,_Appointment-of-Inter-im_General-Manager-and Search Process for Selection of New General Manager Mr. Rendon recessed the meeting at 11:11 a.m. to go into closed session for the purpose of discussing the General Manager's resignation, appointment of an interim General Manager and search process for selection of a new General Manager, pursuant to Section 551.074, Personnel Matters, of the Open Meetings Act. The meeting was reconvened at 11:55 a.m. by Mr. Rendon. Regional Transportation Authority Board Of Directors Meeting Minutes May 12,2004. Page 9 MR. BARRERA MADE A MOTION TO ALLOW THE BOARD CHAIR TO NEGOTIATE MS. WATSON'S SEPARATION AGREEMENT. MS. GARZA SECONDED. THE MOTION CARRIED. MS. GARZA MADE A MOTION TO NAME RICARDO SANCHEZ AS INTERIM GENERAL MANAGER AND TO GRANT HIM A $2,000 PER MONTH STIPEND UNTIL A PERMANENT GENERAL MANGER IS EMPLOYED. MR. BARRERA SECONDED THE MOTION. THE MOTION CARRIED WITH MR. HERRERO ABSTAINING TO AVOID CONFLICT OF INTEREST. MR. BARRERA MADE A MOTION TO AUTHORIZE THE BOARD CHAIR TO APPOINT A SELECTION COMMITTEE TO FACILITATE THE - GENERAL MANAGER RECRUITMENT PROCESS. MS. GARZA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY. Adjournment Each of the board members thanked Ms. Watson for her dedication to the RTA and wished her luck with her new position as the General Manager for the Orlando, Florida public transit system. There being no further business, the meeting was adjourned at 12:01 p.m. adt,tuni ANNA M. FLORES BOARD SECRETARY DATE