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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 06/01/2005 • SgJ.� -ii REGIONAL TRANSPORTATION AUTHORITY 61' 1 ` � BOARD OF DIRECTORS' MEETING � '\ JUNE 1, 2005 `; JUL �Q5 RECEIVED SUMMARY OF ACTIONS ,n CITYSOEFRETARY'S ®/ •o ICE 1. Provided Opportunity for Public Comment • 2. Approved the Board of Directors' Minutes and Planning SessionlMiriutes of May 4, 2005 3. Heard Update on RTAC Committee Activities 4. Accepted Committee Reports 5. Approved Consent Agenda Items a) Awarded the Final Option Year Contract to Four Star Services for Ground Maintenance Services b). Approved the 2005 First Quarter Defined Contribution Plan Report c) Approved the 2005 First Quarter Defined Benefit Plan Report d) Authorized Awarding a Contract to The Waters Consulting Group Inc. to Conduct a Compensation and Classification Study e) Approved Extending the Contract with Mr. Harvey Schulmeier for Temporary Assistance in Vehicle Maintenance Department f) Authorized Applying for 5307 Grant Funds for Bus Operator and Administrative Training Programs 6. Approved the 2004 Comprehensive Annual Financial Report, Audit and Management Letter Response 7. Approved the April 2005 Financial Report 8. Heard B-Line Update 9. Heard General Manager's Report * * * * * * * * * * * * * * * * * * * * * * * * * * * 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), Anna M. Flores (Board Vice-Chair), Rolando Barrera, Joe Benavides, John Buckley John Longoria, Crystal Lyons, David Martinez, Wayland Simmons Board Members Absent: Carmen Arias (Board Secretary), Davie Cissna Staff Present: Ricardo Sanchez (General Manager), David Seiler, Ed Carrion, Sylvia Castillo, Sharon Montez, Elias Sissamis, Sharlene Sexton, Beth Vidaurri; Stuart Sher, Lamont Taylor Public Present: Ed Pritchard; Molly Rodriguez-Finch; Abel Alonzo; Eloy Soza; John Sheppard, Tim McKay, Collier Johnson &Wood; Rollie Waters, The Waters SCANNED . ._ ional Transportation Aithority Board of Directors Meeting Minutes June 1, 2005 Page 2 .f1. Z.(3 . consulting Group; Roland Garza, RTAEA; Deborah Hovda, RTAC; Brenda • Fernandez, Edna Arredondo, Dana Smith, MV Transportation; Greg Salazar, Teamsters 1110 Call to Order The Board of Directors' meeting was called to order by Mr. Rendon at 8:50 a.m. Opportunity for Public Comment Mr. Ed Pritchard voiced his support for Councilman Chesney's proposal. He encouraged an open discussion on the proposal. He stated that the question was whether RTA had extra money to assist the City of Corpus Christi and the public's perception was that RTA had an over abundance of funds. Ms. Molly Rodriguez-Finch stated that as a representative of disabled persons in the community, she opposed Councilman Chesney's proposal because it would probably lead to a reduction in services by the RTA. RTA services were needed because it provided independence for persons with disabilities. She said that earlier hours on Sunday would be beneficial to the riders. Mr. Roland Garza spoke in opposition to Councilman Chesney's proposal. He cited the need for the City to follow the RTA's example and be financially accountable; not ask other entities to enhance the City's budget; and take responsibility for their inadequate fire protection and training facilities. Mr. Abel Alonzo also stated his opposition to Councilman Chesney's proposal. He cited the negative impact on the community if Mr. Chesney's proposal was accepted. He noted that RTA services were essential for senior citizens, disabled persons and those who could not afford a private vehicle. Mr.Rendon'commented-on-aletter he-received July 31, 2005'frcm'Councilman Chesney. He expressed his willingness to meet with public officials or citizens to discuss any proposals regarding the RTA. Mr. Eloy Soza spoke in opposition to Councilman Chesney's proposal. He cited the resulting effects of accepting Mr. Chesney's proposal as reducing services to persons with disabilities and eliminating their right to contribute to society. Discussion and Possible Action to Approve the Board of Directors' Minutes and Planning Session Minutes of May 4, 2005 r r' nal Transportation Authority Board of Directors Meeting Minutes June 1, 2005 Page 3 MR. LONGORIA MADE A MOTION TO APPROVE THE BOARD OF DIRECTORS' MINUTES AND PLANNING SESSION MINUTES OF MAY 4, 2005. MR. BENAVIDES SECONDED THE MOTION. THE MOTION CARRIED. Update on RTAC Committee Activities Ms. Hovda reported on the RTAC meeting held on May 19, 2005. She stated that the No Show Appeal Committee met and out of seven appeals one was upheld; • three applicants were approved based on new information by the Eligibility Appeals Committee; several reports were heard; and it was announced that on May 27, 2005 a demonstration on wheelchair securement would be held. In response to Mr. Sanchez, Ms. Hovda stated that Ms. Salazar's concerns brought up at a Board meeting regarding the B-Line service had been resolved. Action to Accept Committee Reports MR. MARTINEZ MADE A MOTION TO ACCEPT COMMITTEE REPORTS. MS. LYONS SECONDED THE MOTION. THE MOTION CARRIED. Consent 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. Mr. Longoria asked that Item 5d be pulled for discussion. a) Action to Award the Final Option Year Contract to Four Star Services for Ground Maintenance Services b) Action to Approve the 2005 First Quarter Defined Contribution Plan Report : .._. c) Action to Approve the 2005 First Quarter Defined Benefit Plan Report e) Action to Approve Extending the Contract with Mr. Harvey Schulmeier for Temporary Assistance in Vehicle Maintenance Department . f) Action to Authorize Applying for 5307 Grant Funds for Bus Operator and Administrative Training Programs MR. SIMMONS MADE A MOTION TO APPROVE CONSENT AGENDA ITEMS 5a, 5b, 5c, 5e AND 5f. MR. MARTINEZ SECONDED THE MOTION. THE MOTION CARRIED. d) Action to Authorize Awarding a Contract to The Waters Consulting Group Inc. to Conduct a Compensation and Classification Study :_ ional Transportation Authority Board of Directors Meeting Minutes June 1, 2005 Page 4 Mr. Sanchez introduced Mr. Rollie Waters, President and Founder of The Waters Consulting Group. He stated that proposals had been received from Ray Associates, Inc. and The Waters Consulting Group, Inc. A team of five RTA staff had evaluated the proposals and the Waters Group was being recommended for award of contract. The determining factor was their competitive pricing. Responding to Mr. Longoria, Mr. Sissamis stated that the Board approved all the recommendations from the 2000 Compensation and Classification Study completed by Ray Associates, Inc. and that the essential components were implemented. Mr. Waters, in response to Mr. Longoria's concerns, stated that there were several formulas used to,determine cost of living differentials. Regarding implementation, he stated that his firm reviews the Authority's resources when developing implementation options. They would be presented to the Board for discussion and adoption at a joint meeting between the RTA Board of Directors and the firm's staff. MR. SIMMONS MADE A MOTION TO AWARD A CONTRACT TO THE WATERS CONSULTING GROUP INC. TO CONDUCT A COMPENSATION AND CLASSIFICATION STUDY. MR. LONGORIA SECONDED THE MOTION. THE MOTION CARRIED. Action to Approve the 2004 Comprehensive Annual Financial Report, Audit and Management Letter Response Mr. Sanchez introduced Mr. John Shepherd and Tim McKay from the firm of Collier Johnson and Wood, PC. Mr. Shepherd presented an overview of the Authority's 2004 Comprehensive Annual Financial Report (CAFR). He began by explaining that a CAFR is a more in-depth report than the annual audited financials that the Authority has previously produced. The report is divided up-into four sections — introductory, financial, statistical, and single audit compliance. The introductory section contained a transmittal letter that serves as a communication to the readers and describes the Authority's activities. The financial section, as explained by Mr. Shepherd, began with the auditor's unqualified opinion on the Authority's financial statements and detailed the Authority's activities for the year. Referencing Management's Discussion and Analysis, he noted that the Authority's net assets at the end of 2004 were $48.3 million, which represents an increase of $4.4 million over the end of 2003. The increase is due to investments in capital assets increasing by $3.3 million and unrestricted net assets increasing by $1.1 million. { R,- .,`nal Transportation Authority Board of Directors Meeting Minutes June 1, 2005 Page 5 Reviewing the Statement of Assets section, Mr. Shepherd stated that two areas had changes in the accounting treatment from prior years — unrealized losses on investments and the accounting treatment for the Authority's pension expense. The Authority had investments of$12 million and some of the investments with a holding period of more than 1 year from the original purchase date had an unrealized loss of $47,000. Investment income for the year was reduced by this amount according to government accounting practices. The second accounting change was that the pension cost was part of the operating expenses in compliance with government accounting standards. The Authority was now presenting fiduciary funds for the Authority's two pension plans. The Defined Benefit Pension plan was under funded per the Authority's actuarial report. This net pension liability contained in the financial statements represented the difference between 'the Actuary's recommended contributions and the amounts actually contributed to the plan by the Authority. There was-a brief discussion initiated by Mr. Simmons on the best plan to bring the • Authority's pension plan to full funding. Mr. Shepherd noted that since the Authority contributed less than the actuary's recommendations in prior years, a portion of the expense in thefinancial statements represented lost interest on the plan's,earnings at the annual rate of 8.5% because that is the assumption used by the actuary. He recommended that the Board develop a plan to achieve full funding of the plan after consulting with the actuary. Mr. Sanchez pointed out that the Authority discontinued submitting a CAFR in 1995 but had decided to submit a report for 2004 in an attempt to earn a Certificate of Achievement in Financial Excellence. Mr. Longoria referenced that at a recent Board retreat the direction was for staff to determine the financial health of the organization and what it faces over the next five years in terms of challenges., After a brief discussion, Mr. Sanchez stated that an agenda item would be brought to the Board on both determining the financial health of the organization and developing a plan to fully fund the pension plan. Mr. Rendon stated that the Board's main concern from the Board's retreat was whether the Authority was going to be able to provide good service in the future while living within its means. Mr. Sanchez explained that developing a three to five year plan would help determine future operational requirements. Mr. Shepherd stated that a long-term plan for the capital budget would also need to be developed. Reviewing the Management Letter, Mr. Shepherd highlighted the operational issues listed in the letter noting that these were not significant but should be addressed. These were related to the purchase card approvals, duplicate payments with the purchase card and traditional payables processes, document controls, conflicting records, and sporadic submission of certified payrolls from contractors as required by OMB Circular A-133 and the Davis-Bacon Act. He stated that the Authority had ional Transportation Authority Board of Directors Meeting_Minute June 1, 2005 Page 6 responded well to each of the points raised. He commended RTA staff for deciding to submit the CAFR and the excellent job done. Mr. Sissamis referenced the Authority's proposed response contained in the Board packet. He noted that with the exception of the pension funding, which would be addressed by the Board before the end of the year, all points raised in the Management Letter had been addressed. MS. LYONS MADE A MOTION TO APPROVE THE 2004 COMPREHENSIVE ANNUAL FINANCIAL REPORT, AUDIT AND MANAGEMENT LETTER RESPONSE. MR. BENAVIDES SECONDED THE MOTION. THE MOTION CARRIED. Discussion and Possible Action to Approve the April 2005 Financial Report Mr. Sissamis explained that the sales tax revenue amounts in the financials reflected January through March of 2005 and an estimate of April 2005. The totals for January through April were approximately $235,000 compared to the same months of 2004 and $150,000 over the 2005 budget for those months. He noted the following challenges facing the Authority: fully funding the pension plan; rising fuel prices; increases in parts expenses over the budgeted levels; and increasing demand for trips on the B-line service. Mr. Sissamis further explained that B-Line trips have been increasing above budgeted levels and that revamping the eligibility process would hopefully have a positive effect. Regarding fuel costs, staff has been researching the possibility of stabilizing prices using derivatives. Mr. Barrera inquired when the pension funding issues would be brought to the Board. Mr. Sissamis indicated that previous direction from the Board was to present this issue at.the September 2005 Administration Committee since seven months of sales tax revenues would be available and this would assist the Board with its decision on the funding level for the plan. He clarified that at the last meeting the Y Board approved funding the plan at°.the Actuary's recommended level of $692,000 instead of at the budgeted level of $721,000 pending review of the Authority's financial position. Also to be included in the review was an analysis of the options to speed up the funding to the appropriate levels and the plan's growth assumption of 8.5%. MR. BARRERA MADE A MOTION TO APPROVE THE APRIL 2005 FINANCIAL REPORT. MR. LONGORIA SECONDED THE MOTION. THE • MOTION CARRIED. Transportation Authority Board of Directors Meeting Minutes June1, 2O0 ._ Page 7 B-Line Update Ms. Fernandez reported that for the month of April 2005 ridership increased from 13,356 in 2003 to 15,489; there were 2,938 wheelchair boardings; "no-shows" were 513 which was a 9% increase compared to the previous month; denials were at zero; and 8 CAF's were received compared to 9 for March. Above contract standard were passengers per hour at 2.66 and on-time performance at 95.6%. The driver of the month was Mike Rios and employee of the month was Hope Sanchez. She acknowledged that MV Transportation was recognized by Black Enterprise Magazine as the 27th largest African American owned company and the number one employment leader. She congratulated Mr. and Mrs. Lodde for this achievement. • There was a general discussion regarding increased B-Line ridership. Ms. Lyons expressed the opinion that riders could not be denied trips based on budget. She stated that the increase was due to persons becoming more independent and not because of an increase in the number of persons using the service. She also recommended that fixed route servicebe made more user friendly for persons with disabilities. • General Manager's Report Mr. Sanchez reported that Morehead Dotts &Associates was developing public service announcements to promote ridership and help citizens offset rising fuel prices; also working with clean air coalition; Ms. Sylvia Castillo, RTA's Contracts and Grant Administrator was selected as President of the Board of Directors of the National Association of Purchasing Management (NAPM); City of Corpus Christi would be hosting an open house on June 10, 2005 at the improved marina facility; a resolution had been passed recognizing RTA's 20 years of service by the State Legislature; and RTA had received a HUD EDI grant.for sidewalk improvements in the amount of$159,750 and a HUD grant in the amount of$200,000 for downtown development for street landscape_improvements., He noted that the RTA had not been named in the latter grant and staff was working with the congressional delegation to remedy the omission. Mr. Sanchez also announced that the RTA, through its grant consultants, was receiving a Community Oriented Policing Services (COPS) grant in the amount of$400,000. The funds will be used for the purchase of radio communication equipment, routers,.and video cameras that could be used to partner with the City of Corpus Christi on their WiFi project. Continuing with his report, Mr. Sanchez stated that for the first three days, ridership on the Harbor Ferry was 1,021; the Downtown Management District (DMD) would be sponsoring a free fare day on June 26th; the Beachto Bay shuttle had transported 5,626 riders which was an increase of 59% compared to last year; RTA had three teams participating in Beach to Bay and one team placed 25th; RTA was Tonal Transportation Authority Board of Directors Meeting Minutes une - 2005 _. Page 8 participating in the "Branding concept" sponsored by the City of Corpus Christi; discussions were underway with HEB for developing a ride program to benefit seniors and persons with disabilities and provide a subsidy to the RTA; participating with Westside Business Association on LCI project around the Agnes/Laredo area on June 18th; and RTA Senior Staff had held a retreat on June 26th and their goal implementation plan would likely be presented at the June Administration Committee meeting. He also stated that Mr. Cissna was recuperating and doing well. Mr. Barrera inquired about the number of tickets purchased by the OMNI Hotel. Mr. Trexler agreed to provide that information. Mr. Longoria suggested displays about the Harbor Ferry service at each of the downtown hotels. Mr. Barrera invited Board Members and RTA staff to participate in the American Diabetes Association fundraising walk in October. Responding to Mr. Longoria, Mr. Sanchez stated that the Alameda Bridge pedestrian crossing was anticipated to be dedicated in July 2005 and Mr. Gordon Litton would be invited to attend. Mr. Longoria suggested that RTA pursue having an RTA or public transphortation day at a Hooks baseball game next year. Mr. Benavides also suggested a similar event at an Aviators baseball game: Mr. Benavides commended RTA staff for their professionalism in transporting riders during the Beach to Bay and graduation events. He encouraged all Board Members . to fulfill their commitments when they have agreed to attend a community function to represent the RTA. Mr. Rendon commended RTA staff for a successful Harbor Ferry kickoff event. The meeting was adjourned at 10:37 a.m. Carmen Arias Board Secretary Date