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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 06/04/2008 REGIONAL TRANSPORTATION AUTHORITY BOARD OF DIRECTORS' MEETING • n(21,92027 WEDNESDAY, JUNE 4, 2008 �'►°" ��v • SUMMARY OF ACTIONS !�l � � 3 V")6,;) 1. Held Roll 2. Provided Opportunity for Public Comment o / 0 CE '`' Aj 3. Heard Update on RCAT Committee Activities *9pow '' 4. Approved the Board of DirectorsMinutes of May 14, 2008 . a,s z 5. Accepted Committee Report from RCAT 6. Approved the April 2008 Financial Report 7. Approved Amending a Professional Services Agreement with Elias Sissamis for Financial Consulting Services 8. Approved Submittal of JARC and New Freedom Funded Projects 9. Authorized Application for FY 2006 JARC and New Freedom Grant Funds 10. Awarded a Contract to Gilbert Tweed for Executive Recruitment Services for the Chief Executive Officer (CEO) Position 11. Heard B-Line Report 12. Approved the 2008 Actuarial Study and Contribution to the Defined Benefit Plan 13. Heard Chairman's Report 14. Heard General Manager's Report 15. Held Closed Session on Appointment of Interim General Manager with Possible Action in Open Session 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: Crystal Lyons (Board Chair), Dr. Maurice Portis (Board Secretary), John Longoria, David Martinez, Mike Rendon, Sara Salvide, Judy Telge Board Members Absent: Mannti Cummins, Ricardo Ramon, Anna Flores (Board Vice-Chair), John Valls Staff Present: Ricardo Sanchez (General Manager), David Seiler, Beth Vidaurri, Ed Carrion, Sylvia Castillo, Linda Fallwell-Stover, Kristi Pena, Ramon Sanchez, Lamont Taylor, Martin Trevino, Oscar Vargas, Ruth Willey, Public Present: Mario Rodriguez, Juan Harris, Lupe Nunez, Delia Cristan, Juanita Martinez, Laura Salas, Frank Trevino, Ruben Morales, Frank Perkins, David Garcia, J. Henry, Mike Rios, Connie Blanton, Teamsters Union; Nova Shields, Brenda Fernandez, Carlos Vargas, MV Transportation; Fanny Chirinos, Corpus Christi Caller Times; Elias Sissamis, RTA Consultant; Connie Blanton; Billy Laridis, RTA; Maricela DeLaFuente, SCANNED • ;Regional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 2 MHMR and RCAT;; Lupe Salazar, Rosie Aguiar, RTAEA; Debby Hovda, Eloy Soza, RCAT; Jeri L.S. Morey, Jeri L.S. Morey Architect; Abel Alonzo; Chris Langmayer, Veolia; Kien Liew, PensionBenefits Call to Order The roll was called and a quorum declared present. The Board of Directors' meeting was called to order by Ms. Lyons at 8:42 a.m. Opportunity for Public Comment Ms. Maricela DeLaFuente, RCAT member and employee of Nueces County MHMR, expressed her support for MV Transportation. She remarked on the excellent job that MV Transportation was performing in providing the paratransit service. Mr. Eloy Soza, RCAT Committee member, spoke about the difficulties experienced when the transition was made to MV Transportation and expressed the concern that the same problems would surface if a change in providers was made. He noted that when MV hired Ms. Fernandez as General Manager, positive changes were made and he felt that it was in the best interest of the RTA to award the paratransit contract to MV Transportation. Ms. Jeri L.S. Morey stated that it had been at least five to six months since the city route map on the RTA web site had been down and the page stated that it was under construction. She also noted that in the past when she used the map, the resolution was difficult to read. She asked that this also be upgraded. Ms. Pena stated that some technical difficulties had been experienced but this section of the web site was up and running as of this morning. Secondly, a friend asked Ms. Morey to look at Sunday bus service in order for her to attend church. The result was that Sunday bus service did not start until 10 a.m., and if the rider chose to attend a later service, she either would not be able to get back home or would have to sprint six blocks in three minutes to catch the bus. Ms. Morey asked that the paratransit service be changed to start at 9 a.m. on Sunday. The third request was to recommend that RTA start a commuter express park-and-ride from Bishop, Texas leaving at 7 p.m. to Downtown Corpus Christi and departing Corpus Christi at 5:15 p.m. She recommended that a fare of$2.50 be charged. Mr. Sanchez directed Ms. Pena to contact Ms. Morey to discuss her concerns. Ms. Lyons noted that 12 members of the teamsters union had signed up to address the Board. The group had chosen Mr. Garcia and Mr. Perkins to address the Board on their behalf and their comment time would be extended to six minutes. Mr. David Garcia stated that the union members were in attendance due to questions arising from the RCAT meeting. He stated that the majority of employees working with i�1 �egional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 3 MV Transportation in Corpus Christi supported their retaining the contract and felt that this would be in the best interest of the entire agency and the passengers. Mr. Garcia commented that operations were running smoothly and there were no labor issues. In response to Ms. Salvide, Mr. Garcia stated that the union represented approximately 46 full-time employees; 5-6 part-time employees; and 5 service employees. Mr. Frank Perkins, President of Local 657 in San Antonio, Texas, remarked that the local union members were comfortable with MV Transportation. The local union had merged with their union in 2005. He addressed the misconception that if the contract were awarded to another employer; then the union would be dissolved. He stated that this was incorrect based on the National Labor Relations Act. He noted that the local union did have a large number of grievances or labor unrest with MV Transportation. Responding to Ms. Salvide, Mr. David Garcia stated that during the presentation on the paratransit contract they had heard that the other companies would choose which employees to retain and would be releasing the higher paid employees and replacing them with employees at a lower pay grade. There was a brief discussion ranging from rumors to the importance of the contractor providing good benefits and wages. Mr. Alonzo remarked about the improved service that MV Transportation was providing since they first were awarded the contract. The majority of RCAT Committee members supported MV Transportation. He pointed out that the other proposers' contract would be $1.5 million above the cost proposed by MV Transportation. He asked that the board not make their decision based on politics or friendships and take into consideration the public perception and those in the community that wanted to reduce the amount of sales tax received by RTA. He stated that he was upset that the public would not be able to comment after the paratransit workshop. Ms. Connie Blanton stated that she was a B-Line rider and supported the drivers and appreciated the service provided by MV to persons with disabilities. Update on RCAT Committee Activities Ms. Hovda noted that Ms. Blanton frequently attended the RCAT meetings and this was probably where she was aware that the Board would be discussing the paratransit contract. Reporting on the RCAT meeting of May 22, 2008, Ms. Hovda stated that the No Show Appeals Committee had heard three appeals and sixteen warning notices were reviewed; the Eligibility Appeals Committee had heard three appeals; Ms. Bec Russell had presented a PowerPoint on mobility training; updates were heard on the purchased transportation services, Title II ADA Transition Plan; and vehicle procurement. Monthly Regional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 4 CAF and wheelchair lift malfunctions reports had been heard. She stated that RCAT had held a Special Meeting on May 29th and thanked Mr. Rendon for being present. Ms. Salvide inquired about the estimated number of B-Line riders who have transitioned to fixed-route service. Mr. Sanchez replied that an origin and destination survey would be conducted and would also include a question on whether the rider had transitioned from B-Line service. Ms. Telge commented on a workshop she had attended on managing the cost of paratransit service and noted that in the area of functional eligibility, RTA was ahead of other transit agencies. Discussion and Possible Action to Approve the Board of Directors' Minutes of May 14, 2008 MR. LONGORIA MADE A MOTION TO APPROVE THE BOARD OF DIRECTORS' MINUTES OF MAY 14, 2008. MS. TELGE SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Action to Accept Committee Report from RCAT MR. LONGORIA MADE A MOTION TO ACCEPT THE RCAT COMMITTEE REPORT. MS. TELGE SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Discussion and Possible Action to Approve the April 2008 Financial Report Mr. Sissamis noted that the Administration Committee had not met in May 2008. He reported that sales tax from January through March was $323,724 above budget under revenues; and fuel, through April, was approximately $280,000 over budget under expenses. A budget amendment was being scheduled for June as well as a approval of the Comprehensive Annual Financial Report. Responding to Mr. Rendon, Mr. Sissamis replied that staff had begun to develop cost- saving strategies. He noted that the direction was to avoid using reserve funds; provide the same level of service; and retain the current staffing level. The increased cost of fuel was increasing faster than the sales tax revenue. In the future, utilizing capital grants for operating costs could be necessary. Dr. Portis inquired about the financial impact the increased ridership had. Mr. Sissamis stated that the additional 10 percent increase in ridership equated to approximately $30,000 in increased fare revenue. • �\J _JRegional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 5 MS. TELGE MADE A MOTION TO APPROVE THE APRIL 2008 FINANCIAL REPORT. MS. SALVIDE SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Discussion and Possible Action to Approve Amending a Professional Services Agreement with Elias Sissamis for Financial Consulting Services Ms. Castillo explained that RTA had entered into an agreement with the former Director of Finance and Administration, Elias Sissamis, to assist with various projects. The agreement was for a maximum of$24,999 and needed to be increased above the General Manager's approval level. The request is for an additional $14,925 which would cover 199 hours or approximately five to six weeks. The funding was available in the Finance Department budget due to salary savings from the vacant Director of Finance and Administration position. MR. LONGORIA MADE A MOTION TO APPROVE AMENDING A PROFESSIONAL SERVICES AGREEMENT WITH ELIAS SISSAMIS FOR FINANCIAL CONSULTING SERVICES. MR. MARTINEZ SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Discussion and Possible Action to Approve Submittal of JARC and New Freedom Funded Projects Mr. Carrion stated that the RTA was committed to providing eligible entities the opportunity to participate and obtain funding from Section 5316, the (Job Access and Reverse Commute) funds and Section 5317 (New Freedom) funds. The two proposed projects, as explained by Mr. Carrion, were to operate a commuter express route from Corpus Christi's Southside area and the Uptown/Downtown Business District ("Southside Express); and to provide training to ADA Paratransit eligible riders and senior citizens on the use of accessible fixed route service; to conduct an assessment of long-term fixed route use by training participants; and to develop the means to continue transportation training beyond the project period. He noted that the funding would not cover the fuel to operate the "Southside Express." In response to Ms. Salvide, Mr. Carrion explained that the delay in using the appropriated funds was because projects under these funding programs had to be competitively selected and derived from a locally developed, coordinated public transit- human services transportation plan. Previous funds received under the program had been used to help support the Regional Coordinator position. -_-Regional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 6 A discussion followed regarding the fifty percent match requirement, which had to be met either by the RTA or the project participant(s) and potential community partners. Ms. Telge recommended that RTA work with Worksource to identify potential projects. Mr. Sanchez informed Mr. Longoria that Ms. Brigida Gonzalez, the Regional Coordinator, was working on identifying projects. Mr. Longoria requested that Ms. Gonzalez make a presentation to the Board. In response to Dr. Portis, Mr. Carrion stated that projects utilizing these funds had to be submitted by September 2008 or the allocated funds needed to be returned. MS. TELGE MADE A MOTION TO APPROVE SUBMITTAL OF JARC AND NEW FREEDOM FUNDED PROJECTS. MR. LONGORIA SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Discussion and Possible Action to Authorize Application for FY 2006 JARC and New Freedom Grant Funds Ms. Castillo explained that the request was for approval to apply for FY 2006 JARC grant funds in the amount of$401,022 and New Freedom grant funds in the amount of $155,818 from the Federal Transit Administration (FTA). MR. LONGORIA MADE A MOTION TO AUTHORIZE APPLICATION FOR FY 2006 JARC AND NEW FREEDOM GRANT FUNDS. MR. RENDON SECONDED THE MOTION. THE MOTION CARRIED. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Discussion and Possible Action to Award a Contract to Gilbert Tweed for Executive Recruitment Services for the Chief Executive Officer (CEO) Position Ms. Willey stated that the Executive Committee had met on May 29, 2008 to review the proposals submitted by Allen Austin Executive Search Consultants, Gilbert Tweed, and Recourse Communications Inc. (RCI). The Executive Committee had felt that the Allen Austin firm's lack of a guarantee of service and transit related experience did not allow this firm to offer a competitive proposal and their delivery date had exceeded the RTA hiring timeline. The firm of Recourse Communications' proposal lacked a guarantee of service and transit related experience. The Committee felt that the Gilbert Tweed Company would meet the needs of the RTA because of its extensive background in placing CEO's and top-level positions with transit agencies throughout the United States, including its close ties with the transit industry. Ms. Willey referenced the cost scenario listed on page 26 of the Committee packet. (—)Regional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 7 Mr. Longoria expressed concern that the 90-day timeline may be too quick of a turnaround. Ms. Willey stated that the standard search timeline was 90 days. Ms. Lyons recommended stating that the search would not exceed 120 days. Mr. Rendon commented that the out-of-pocket travel expense should be considered. Mr. Longoria noted that interviews could be held via telephone. Mr. Willey noted that the Gilbert Tweed firm had stated that travel costs would be pre-approved by the Board. MR. LONGORIA MADE A MOTION TO AWARD A CONTRACT TO GILBERT TWEED FOR EXECUTIVE RECRUITMENT SERVICES FOR THE CHIEF EXECUTIVE OFFICER (CEO) POSITION. MR. MARTINEZ SECONDED THE MOTION. PORTIS, LONGORIA, MARTINEZ, SALVIDE, RENDON, AND TELGE VOTING IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. B-Line Report Ms. Faliwell-Stover reported that ridership for April 2008, compared to April 2007 was 16,428 which represented an increase of 8.8 percent. She attributed this to an additional weekday of service in 2008. The average weekday ridership was 694 trips. Referencing service standards, Ms. Faliwell-Stover stated that productivity was 2.78% PPH (Passengers Per Hour); denials were zero but there had been three trips serviced later than one hour; On Time Performance (OTP) was 97.1% with 479 trips out of 16,428 trips not meeting the OTP standard; and miles between-road calls exceeded the minimum of 10,000 miles. Ms. Faliwell-Stover noted that during the month of April, 23% or 3,807 of the boardings were by persons using wheelchairs and seventeen Customer Assistance Forms (CAF), which included 2 commendations, were received in April. In response to Mr. Rendon, Ms. Faliwell-Stover stated that under the productivity service standard, she would provide the actual number of passengers reflected by the percentage reported compared to the 2.5 passenger per hour (PPH) standard. Discussion and Possible Action to Approve the 2008 Actuarial Study and Contribution to the Defined Benefit Plan Ms. Willey explained that the Defined Benefit (DB) Plan was an employer funded plan that was provided by the agency since it did not participate in the federal Social Security system. Annually, a study of the DB plan is performed by an actuary, noted Ms. Willey. • , t ! j • —1Regional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 8 The current contract was with Pension Benefits headed by Mr. Kien Liew. He summarized the key findings as outlined in the report included in the meeting packet. Mr. Liew stated that the report indicated that the Plan was currently 99.6% funded and that the estimated liabilities exceeded its assets by approximately $72,669 as of January 1, 2008. The following primary results from the actuarial valuation of the RTA Employees' Defined Benefit Plan as of January 1, 2008 were presented by Mr. Kien Liew: 1) the actuarial asset value was $18,514,359; 2) the actuarial accrued liability (AAL) was $18,587,028; 3) the unfunded actuarial accrued liability (UAAL) was$72,669 which was 1.1% of payroll; and 4) the value of the benefit that would be earned by the employees in 2008 was the normal cost (NC) which was $553,919. Mr. Liew noted the following changes to the actuarial assumptions:1) the mortality table changed from the 1983 Group Annuity to the RP2000; 2) the pre-retirement interest rate changed from 8.0% to 7.5%; and 3) the projected salary increase assumption changed from 4.0% to 3.5%. Commenting on the schedule of funding progress chart, Mr. Liew stated that the unfunded actuarial accrued liability percentage of covered payroll since 2006 has been within 2 percent. He noted that this was favorable for the agency. Mr. Liew said that if the unfunded amount is below 2 percent, then it is easier for the agency to fully fund the Plan. Responding to Mr. Longoria, Ms. Willey stated that if an employee did not retire at age 62, they would not receive an added benefit similar to the benefit offered by Social Security for delaying their retirement. The benefit calculation would remain the same. MR. RENDON MADE A MOTION TO APPROVE THE 2008 ACTUARIAL STUDY AND CONTRIBUTION TO THE DEFINED BENEFIT PLAN. MR. LONGORIA SECONDED THE MOTION. THE MOTION CARRIED. Chairman's Report Ms. Lyons did not provide a report. General Manager's Report Mr. Sanchez reported that approximately 15,000 riders had been transported during the Beach to Bay event; the Harbor Ferry was back in service; the fifth and final trolley had arrived; retired vehicles had been donated to the City of Agua Dulce, City of Bishop and Del Mar College; the "Dump the Pump" event would be held June 19th and flyers have been distributed to the City of Corpus Christi and Nueces County; the Director of Jegional Transportation Authority Board of Directors Meeting Minutes June 4,2006 Page 9 Finance position has been advertised; and a Special Board meeting would be held on Tuesday, June 17 at 8:30 a.m. to discuss the paratransit contract. Closed Session on Appointment of Interim General Manager with Possible Action in Open Session Ms. Lyons announced at 10:14 a.m. that the Board was going into closed session in order to discuss Agenda Item 15 on the agenda concerning personnel matters under Section 551.074 of the Texas Open Meetings Act. At 11:58 a.m. Ms. Lyons reconvened the regular Board meeting and called for action on Agenda Item 15. MR. LONGORIA MADE A MOTION TO APPOINT DAVID SEILER AS INTERIM GENERAL MANAGER. DR. PORTIS SECONDED THE MOTION. THE MOTION FAILED. DR. PORTIS AND LONGORIA IN FAVOR. RENDON, MARTINEZ, SALVIDE, AND TELGE AGAINST. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. MS. SALVIDE MADE A MOTION TO APPOINT EDUARDO CARRION AS INTERIM GENERAL MANAGER, WITH A FIFTEEN PERCENT SALARY INCREASE FROM HIS CURRENT BASE SALARY UNTIL MR. SANCHEZ'S EMPLOYMENT TERMINATES; AT WHICH TIME HIS SALARY WOULD BE INCREASED TO THIRTY PERCENT ABOVE HIS CURRENT BASE SALARY EFFECTIVE UNTIL THE NEW CEO IS EMPLOYED. MR. RENDON SECONDED THE MOTION. THE MOTION PASSED UNANIMOUSLY BY THOSE MEMBERS PRESENT. DR. PORTIS, LONGORIA, RENDON, MARTINEZ, SALVIDE, AND TELGE IN FAVOR. RAMON, CUMMINS, FLORES, AND VALLS ABSENT. Ms. Lyons clarified that between now and when Mr. Sanchez retires, he would remain the General Manager and Mr. Carrion would be shadowing him. Adjournment There being no further business, the meeting was adjourned at 12 p.m. 69//f6/,(4)---c- 04.1,,v,Board Secretary ate /�