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HomeMy WebLinkAboutMinutes Corpus Christi Regional Transportation Authority - 10/29/2008 - Workshop RECEIVED REGIONAL TRANSPORTATION AUTHORITY DEC ` 'o' BOARD OF DIRECTORS' BUDGET WORKSHOP MEETING MINU ia WEDNESDAY, OCTOBER 29, 2008 ITYSECRETARY'S OFF/GE SUMMARY OF ACTIONS 1. Heard Presentation on Department Budgets 2. Heard Presentation on Proposed 2009 Capital Budget The Regional Transportation Authority Board of Directors met at 10 a.m. in the Regional Transportation Authority Facility located at 5658 Bear Lane, Corpus Christi, Texas. Board Members Present: Crystal Lyons (Board Chair), Anna Flores (Board Vice- Chair), Vangie Chapa, Ricardo Ramon, Mike Rendon, Mary Saenz, Sara Salvide, Judy Telge Board Members Absent: John Longoria, David Martinez, John Valls Staff Present: Alfonso Carrillo, Sylvia Castillo, Sharon Montez, Kristi Pena, Susan Vinson, Ruth Wiley, Dianne Garcia, Emily Ellerbe Public Present: Elias Sissamis, Financial Consultant Call to Order Ms. Lyons called the meeting to order at 10:12 a.m. Presentation on Department Budgets Mr. Sissamis reviewed the proposed 2009 budget for the Customer Programs Department. He noted that personnel would remain at 9 and cited the various cost centers within the Department's budget. In addition, he compared the 2007 budget to the proposed 2009 budget and noted that it had increased by approximately $170,000. He identified the primary changes as the addition of an intern and the addition of 2 vehicles to the van pool program. Mr. Sissamis related that the purchase of the new printer had resulted in a favorable budget impact. Ms. Salvide raised the question of the bus bench advertising revenue and expense. Mr. Carrion explained that under the new contract, RTA would be given advertising space in exchange for trade-offs, resulting in no out-of-pocket expense to the agency. Ms. Telge inquired how in-kind services were tracked and their value monitored. Mr. Sissamis explained that the type of accounting system used by RTA did not track this kind of bartering. Ms. Lyons suggested that tracking in-kind services received by the agency be the responsibility of the Department Head and part of their evaluation to ensure that the agency is receiving comparable value. SCANNED Regi' Transportation Authority Board of Directors Meeting Minutes October 29, 2008 Page 2 Regarding the feasibility of measuring a return on investment, Ms. Telge explained that in-kind services were measurable in the marketing industry. Mr. Carrion advised that the goal was to have this contract mirror the bus advertising contract and the return on investment would be measured. Reviewing the proposed 2009 budget for the Management Information Systems department, Mr. Sissamis highlighted that personnel would remain at 2 and it included the additional cost for 2 support agreements for the Mobile Data Terminals (MDTs). Reviewing the proposed 2009 budget for the Contracts and Grants Department, Mr. Sissamis stated that personnel would remain at 3 and that the Department had decreased its budget approximately $4,000 by reducing the amount provided for training. He explained that last year the Department had new employees, which necessitated additional training. Reviewing the proposed 2009 budget for the General Manager Department, Mr. Sissamis noted that the personnel would remain at 2, the title of General Manager would be changed to Chief Executive Officer (CEO), and an estimated $130,000 was being budgeted for the CEO salary. Mr. Rendon asked if the CEO salary could be adjusted to $140,000 or$150,000. Mr. Sissamis stated that this could be considered based on whether budget savings in another department can be identified and transferred to the General Manager budget. Mr. Sissamis reviewed each cost center in detail. A discussion ensued regarding the Community Services cost center. Mr. Sissamis explained that the increase was due to the inclusion of transportation assistance in 2009 for the Naval Air Show event which occurs every other year. Reviewing the proposed 2009 budget for the Finance and Accounting Department, Mr. Sissamis highlighted that personnel would be going from 5.75 to 6.00, the Director of Finance position, though vacant in 2008, was being budgeted for the entire year at $82,000. Reviewing the proposed 2009 budget for the Human Resources Department, Mr. Sissamis highlighted that the budget included departmental operating expenses and also budgeted for 3 organizational expenses which were dental, health, and pension programs. He noted that personnel would remain at 3, but a part-time intern would be used instead of a full-time employee; and that legal service and consulting cost centers had been reduced. A lengthy discussion ensued regarding the health insurance cost center. Mr. Sissamis communicated that the 2008 approved budget was for approximately $1.2 million, but it was being estimated at year end to reach approximately $1.5 million. �) i Regi ua1 Transportation Authority Board of Directors Meeting Minutes October 29, 2008 Page 3 Ms. Willey explained that a total of 8 large claims are anticipated to be filed in 2008. She stated that a claim exceeding $20,000 was considered to be a large claim. The 2008 budget was based on having 2 large claims. Ms. Willey explained that a change to the health care plan design was not being proposed because if you excluded the additional large claims and reviewed just the routine service claims, the Plan was performing well and the health insurance cost center could have ended the year approximately $300,000 to $400,000 under budget. In response to Mr. Rendon, Ms. Willey stated that $1,650,000 was being budgeted in the health care self insurance cost center for 2009 and was based at the attachment point. She stated that the over budget amount in 2008 would be covered by the reserves in the health insurance reserve fund. Reviewing the proposed DBE and EEO 2009 budget, Mr. Sissamis highlighted that personnel would remain at 2. In addition, he detailed items under the Miscellaneous Expenses cost center. Ms. Telge inquired if procedures were in place to ensure that training received at conferences/training sessions were communicated to others within the agency, such as compliance requirements mandated by the ADA act. Mr. Taylor replied that each individual was responsible for relaying information to their co-workers. IT WAS THE CONSENSUS OF THE BOARD TO CONTINUE DISCUSSION ON THE BUDGET AND CANCEL THE AUDIT, FINANCE, AND HEALTH INSURANCE SUBCOMMITTEE MEETING. Reviewing the Special Projects proposed 2009 budget, Mr. Sissamis explained that the projected expense for the Intermodal Feasibility Study was included in this budget. In response to Mr. Rendon, Mr. Sissamis stated that if federal funds were received, then any remaining budgeted funds could be used for a different project. Providing a general overview, Mr. Sissamis stated that due to unusually high sales tax revenues, revenues in 2008 were anticipated to be about $1.3 million over budget by December 31, 2008. In 2009 the budget was anticipated to have a $1.0 million shortfall. Therefore, in order to balance the 2009 budget, Mr. Sissamis said that the plan was to move $1.0 million from the 2008 budget over to the 2009 budget. In response to Mr. Rendon, Mr. Sissamis stated that approximately $3.9 million was being budgeted for fuel agency-wide. Presentation on Proposed 2009 Capital Budget Mr. Carrion explained that the 20-year long-range projection handout was developed by reviewing the current system, considering how to sustain the current operation; then i Regi{�i j'Transportation Authority Board of Directors Meeting Minutes October 29, 2008 Page 4 considering how to expand the system in the future. He noted that both funded and unfunded initiatives were included in the document. He stated that this was a preliminary proposal and encouraged input from the Board. Identifying the initiatives that could be funded under the current capital project funds, Mr. Carrion cited the purchase of land on the Southside, Flour Bluff, and Northwest areas of town for future service expansion. He noted that this was recommended in the Comprehensive Operational Analysis (COA). He further identified inclusion of $1.6 million for the grant match on the intermodal facility in Robstown; $50,000 per year for the ADA transition plan in addition to the $150,000 budgeted yearly and the $500,000 allocated to the City of Corpus Christi under the Street Improvement Fund. Mr. Carrion continued by stating that it also included funding for development of an alternative fueling station; the addition of one bus every five years for both fixed route and Paratransit service; and the delta for purchasing alternative fuel vehicles compared to diesel powered vehicles; and refurbishment of the Paratransit facility. Mr. Carrion identified the unfunded initiatives as Bus Rapid Transit (BRT) and light rail. Mr. Sissamis explained that the 20-year projection was based on current knowledge and that economic changes could alter the Plan. Mr. Rendon asked what the budgeted amount was for the new initiatives. Mr. Sissamis stated that he would provide this information at the November Budget workshop. Ms. Lyons recommended that the 2009 budget workshops be scheduled for 1.5 hours. There being no further business, the meeting was adjourned at 11:32 a.m. Sara Salvide, Board Secretary 30 � Date