BOARD OF DIRECTORS ALAMEDA-CONTRA COSTA TRANSIT DISTRICT
MINUTES Regular Meetings of the Board of Directors and the External Affairs and Finance and Audit Committees AC Transit Genera l Offices 2"d Floor Board Room 1600 Franklin Street Oaklahd, CA 94612
Wednesday, April 22, 2015 at 5:00 p.m. Closed Session: 3:30 p.m. Committee meetings will commence when the Board of Directors recesses to a Committee of the Whole
MEMBERS OF THE BOARD OF DIRECTORS H. E. CHRISTIAN PEEPLES, PRESIDENT (AT-LARGE) ELSA ORTIZ, VICE PRESIDENT (WARD 3) JOE WALLACE (WARD 1) GREG HARPER (WARD 2) MARK WILLIAMS (WARD 4) JEFF DAVIS (WARD 5) JOEL YOUNG (AT-LARGE) BOARD OFFICERS KATHLEEN KELLY, INTERIM GENERAL MANAGER DENISE C. STANDRIDGE, GENERAL COUNSEL LINDA A. NEMEROFF, DISTRICT SECRETARY
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BOARD OF DIRECTORS MEETING- H. E. Christian Peeples, President Wednesday, April22, 201S at 5:00p.m. The Alameda-Contra Costa Transit District Board of Directors held a
ACTION SUMMARY
!
regular meeting on Wednesday, April22, 2015.
The meeting was called to order at 3:38 p.m. for the purpose of Closed Session. All Board members were present with the exception
of Director Davis who arrived at 4:00 p.m. The District Secretary announced that the Board would convene in aosed Session to discuss Items 7A-E as listed on the agenda. Closed Session concluded at 4:28 p.m.
President Peeples called the regular meeting to order at 5:05p.m. 1.
ROLLCALL
Present: Wallace, Harper, Williams, Davis, Young, Ortiz, Peeples Absent: None 2.
PUBLIC COMMENT Jane Kramer commented on transparency and accountability with
regard to One Bay Area Plan, noting that long-term plans need to address everyone's needs rather than a one-size fits all approach. Clarence Fischer commented that operators on line 75 are deviating from the scheduled route and, despite complaints, the problem persists. He added that he and another disabled patron were recently left stranded and Road Supervisors had to pick them up and drive them to their next stop. He also noted problems on the printed line 36 schedule. (submitted letter) David Vartanoff commented that TransForm is reporting that BART should seek a tax and suggested that AC Transit, BART and other agencies get together and seek a large tax package and distribute the funds based on ridership. If it passed, existing taxes should be wiped out.
3.
CONSENT CALENDAR MOTION: WALLACE/WILLIAMS to receive Item No. 38 as presented.
RECEIVED
Item 3A was pulled off the consent calendar by Director Harper for comment. The motion carried by the following vote: AYES:7; Wallace, Williams, Harper, Davis, Young, Ortiz, Peeples
3A. Consider approving Board of Directors and Standing Committee minutes of April 8, 2015. {The minutes were provided at the meeting for the Board's consideration.]
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APPROVED
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Director Harper pulled the item off the Consent Calendar to inquire if there is a procedure to transmit directives to staff based on individual Board Member suggestions in the minutes. Following discussion, it was decided that direction to staff will be given in the form of a motion approved by the Board and recorded in the minutes. MOTION: HARPER/ORTIZ to approve the Board of Directors and Standing Committee minutes of April 8, 2015. The motion carried by the following vote: AYES:7: Harper, Ortiz, Wallace, Williams, Davis, Young, Peeples 38. Consider receiving Accessibility Advisory Committee minutes of March 10, 2015 (Report 15-072).
4.
REGULAR CALENDAR
4A. Consider approving the Interim General Manager's employment agreement (Report 15-124).
PUlLED OFF THE AGENDA
The item was pulled off the agenda and will be rescheduled to the April 29, 2015, Board Retreat.
48. Consider approving a one-time recognition payment to James Pachan for assuming additional responsibilities as Acting General Manager
APPROVED
(Report 15-126).
[A copy of Staff Report 15·126 wos provided at the meeting for the Board's consideration.]
There was no presentation of the staff report. MOTION: ORTIZ/WAllACE to approve a one-time recognition payment in the amount of $5,000 to James Pachan for assuming additional responsibilities as Acting General Manager. The motion carried by the following vote: AYES:7: Ortiz, Wallace, Harper, Williams, Davis, Young, Peeples 4C. Consider approving a one-time waiver of Board Policy 201, Section 2.8 (Project Pay); and authorize and direct the Interim General Manager to grant an additional 5% in project pay to the Chief Operating Officer for serving in the capacity of Interim Chief Financial Officer retroactive to April 15, 2014, until the duties of the Chief Financial Officer are re-assigned (Report 15-127).
APPROVED
There was no presentation of the staff report. Alameda-Contra Costa Transit District
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MOTION: WALLACE/ORTIZ to approve a one-time waiver of Board Policy 201, Section 2.8 !Project Pay); and authorize and direct the Interim General Manager to grant an additional 5% in project pay to the Chief Operating Officer for serving in the capacity of Interim Chief Financial Officer retroactive to April 15, 2014, until the duties of the Chief Financial Officer are re-assigned. The motion carried by the following vote: AYES:7: Wallace, Ortiz, Harper, Williams, Davis, Young.. Peeples 40. Consider whether to hold discussions with executive search firms in the competitive range (finalists}. (verbal}
General Counsel Denise Standridge advised that there were two search firms in the competitive range for award and asked whether the Board wanted to hold discussions with the firms or defer to the Executive Search Committee. The Committee recommended that the Board hold the discussions.
THE BOARD TO HOLD DISCUSSIONS WITH FIRMS
Consensus to accept the recommendation of the Executive Search Committee that there be discussions with the two top firms. (7-0) Consensus that that the Board hold discussions with the two firms. (70) The discussions are to take place at the Board Retreat on April 29, 2015, if the firms are available.
RECESS TO STANDING COMMITIEES (as the Committee of the Whole}
The Board meeting recessed to the Standing Committees at 5:23 p.m. ALL COMMITIEES ARE ADVISORY ONLY.
A.
i' EXTERNAL AFFAIRS COMMITIEE- Mark Williams, Chairperson
) The External Affairs Committee convened at 5:23 p.m. All Committee ! members were present.
ACTION SUMMARY
A·l. i Public Comment jfor items not on the agenda) I 1 There was no public comment offered.
i Briefing/Action Items: A·2. : Consider recommending receipt of the monthly legislative report and
' approval of legislative positions (Report 15-091).
ii Director of legislative Affairs and Community Relations Beverly Greene ! '
RECOMMEND APPROVALWITH MODIFICATIONS
presented the staff report.
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; President Peeples felt the District should change its position on SB 413 ! {Wieckowski) to Oppose or Watch because it would create an · unrealistic expectation that operators would force people to vacate seats designated for the elderly and disabled or call the sheriff to Impose the criminal sanctions called for by the bill. After discussion, the Committee directed staff to investigate and analyze SB 413 and its potential impacts on operators before reconsidering the District's position. MOTION: ORTIZ/PEEPLES to direct staff to investigate and analyze SB
413 and its potential impacts on operators if they have to become enforcers of the bill. The motion carried by the following vote: AVES: Ortiz, Peeples, Wallace, Harper, Davis, Young, Williams President Peeples commented that the position on AB 1008 (Quirk) should be changed from WATCH to SUPPORT because it would allow
: AC Transit to sell hydrogen without becoming a public utility. MOTION: YOUNG/PEEPLES to approve a change in the District's prior position on AB 1008 (Quirk) from WATCH to SUPPORT. The motion
carried by the following vote: 1
AYES: Young, Peeples, Wallace, Harper, Ortiz, Davis, Williams
i
i MOTION:
PEEPLES/YOUNG to forward to the Consent Calendar Addenda recommending receipt of report and approval of legislative I positions including a change in the District's position from WATCH to j
SUPPORT on AB 1008 (Quirk). The motion carried by the following i i vote:
i i
1
AYES:7: Peeples, Young, Wallace, Harper, Ortiz, Davis, Williams
I
The External Affairs Committee adjourned at 5:35 p.m.
B.
! FINANCE AND AUDIT COMMITIEE- Jeff Davis, Chairperson i The Finance and Audit Committee convened at 5:35
I Committee members were present.
p.m. All
ACTION SUMMARY
i B-1.
! Public Comment (for items not on the agenda) i' There was no public comment offered.
' !' Consent Items:
.
RECOMMEND
i MOTION: WILLIAMS/WALLACE to forward to the Consent Calendar
Addenda recommending receipt or adoption as indicated. The motion ! carried by the following vote: !
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RECEIPT OR ADOPTION AS INDICATED
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' AYES:7: Williams, Wallace, Harper, Ortiz, Young, Peeples, Davis B-2.
Consider recommending receipt of the Monthly Report Investments for the month of February 2015 (Report 15-092).
on
B-3.
Consider recommending receipt of the Bi-monthly Budget Update (Report 15-093).
B-4. : Consider recommending adoption of Resolution No. 15-021 authorizing the Interim General Manager or designee to file and execute documents with the California Department of Transportation ; (Caltrans) for an allocation request of State Transportation : Improvement Program (STIP) funds for the East Bay Bus Rapid Transit (BRT) project {Report 15-112). ;
j Public Comment:
I Jerry Grace commented on changes to bus routes such as the 72R and
I' line 1. f
Briefing/Action Items:
'
B-5. : Consider recommending receipt of report on the Draft FY 2015-16 i Annual Operating Budget (Report 15-033c).
RECOMMEND RECEIPT
: {A PowerPoint presentation was given and is incorporated into the minutes by reference.] ' Interim Chief Financial Officer James Pachan opened the item by saying : that current figures show a funding gap of $3 million due to the recent j service expansion and an increase in funds required for the District's : capital program. He added that staff will continue to review I department budgets in an effort to ensure a balanced budget for FY ! 2015-16. He further introduced Director of Management and Budget i' Donald Eckert who gave the staff presentation on the operating I budget. Director Harper commented that due to internet sales, sales tax : revenue may not be as volatile as previously thought. With regard to ! pension, he also asked that future budget presentations distinguish between actuarial and PEPRA assumptions and liabilities. j
! President Peeples asked at what point in the budget cycle it would be ! appropriate to request new positions or restructure departments. Mr.
i Pachan
advised that new employees can be added during the yearly I budget development process or at the mid-year review. In unusual cases, staff can request new positions outside of the current budget, ! but that must be made clear in their request to the Board.
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With regard to position requests from departments, Vice President ; Ortiz inquired about the purpose of the additional position in the : General Manager's budget. Mr. Pachan advised that the position would assist with Disadvantaged Business Enterprise compliance. Discussion ensued with regard to vacant positions in the budget and the need for more transparency when combining or adjusting these positions outside of the budget process. Also discussed was the notion of adding extra positions to the budget for convenience in swapping positions or creating new positions later. Vice President Ortiz requested a current list of vacant positions, including the length of time each position has been vacant. Mr. Pachan advised that a list would be provided. Interim General Manager Kathleen Kelly clarified that when staff brings a budget to the Board for approval, it is staffs intent to fill any positions that are vacant. In addition, staff provided clarification with regard to classification
specifications in response to concerns raised by Vice President Ortiz that classifications are never abolished. Ms. Kelly advised that classifications can exist for years whether or not they are budgeted. Director Wallace asked how often the list of vacancies is examined and scrubbed. Chief Administrative Services Officer Tom Prescott said classifications are examined annually and budgeted vacancies are reviewed weekly. In response to a question from President Peeples, Mr. Prescott clarified that an empty job classification could not be filled unless it went through the budget process and a budgeted position was approved. Chair Davis asked if AB 1107 was in both the Capital and Operating : Budgets. Manager of Capital Planning and Grants Chris Andrichak said the presentation chart showed all revenues available, and some would be applied to capital and some to operating expenses. This would be covered in the next presentation to the Board. Public Comment: Yvonne Williams, President/Business Agent of ATU local 192, pointed out that ATU took cuts in wages and benefits amounting to 6% in 2010, 5% in 2011, and 3% in 2012. She argued that ATU has effectively not had a wage increase since 2004 and a 3.5% increase in the coming year will not compensate for the cuts in previous years. MOTION: YOUNG/PEEPLES to forward to the Consent Calendar Addenda recommending receipt. The motion carried by the following vote: AYES:?: Young, Peeples, Wallace, Harper, Ortiz, Williams, Davis Alameda-Contra Costa
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The Finance and Audit Committee adjourned at 6:22p.m.
1
i RECONVENE BOARD OF DIRECTORS MEETING
I' H. E. Christian Peeples, President ! The Board of Directors meeting reconvened at 6:22 p.m. All Board members were present
ACTION SUMMARY
I
i REPORTS OF STANDING COMMITTEES
5.
REPORT GIVEN
] District Secretary Linda Nemeroff reported that External Affairs Item 1 A-2 was forwarded to the Consent Calendar Addenda recommending ! approval of legislative positions as presented with a modification to
i the
District's prior position on AB 1008 (Quirk) from WATCH to
! SUPPORT.
Staff was also directed to investigate and analyze SB 413
i (Wieckowski) and its potential impact on operators. All of the items
from the Finance and Audit Committee were referred to the Consent i Calendar Addenda recommending receipt, approval or adoption as presented. J
i
!CONSENT CALENDAR ADDENDA
6.
I MOTION: WALLACE/ORTIZ to receive, approve or adopt the items I referred to the Consent Calendar Addenda as indicated, including Item i A-2, which was forwarded to the Consent Calendar Addenda I recommending approval of legislative positions as presented with a i modification
RECEIVED, APPROVED OR ADOPTED AS INDICATED
to the District's prior position on AB 1008 (Quirk) from
I WATCH to SUPPORT.
The motion carried by the following vote:
l AYES:7: Wallace, Ortiz, Harper, Williams, Davis, Young, Peeples
I A.
!
The items brought before the Board were as follows:
'
EXTERNAL AFFAIRS COMMITTEE:
A-2.
Consider receiving the monthly legislative report and approval of legislative positions (Report 15-091).
B.
FINANCE AND AUDIT COMMITTEE:
B-2. i Consider receiving the Monthly Report on Investments for the month
i of February 2015 (Report 15-092).
B-3. B-4.
i Consider receiving the Bi-monthly Budget Update (Report 15-093). i I Consider adoption of Resolution No. 15-021 authorizing the Interim j General Manager or designee to file and execute documents with the ' California Department of Transportation (Caltrans) for an allocation ! request of State Transportation Improvement Program (STIP) funds for 1
' the East Bay Bus Rapid Transit (BRT) project (Report 15-112).
B-5.
Consider receiving report on the Draft FY 2015·16 Annual Operating Budget (Report 15-033c).
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7.
CLOSED SESSION/REPORT OUT General Counsel Denise Standridge reported out on the following:
REPORT GIVEN
MOTION: PEEPLES/WALLACE authorize payment of the District's self-
insured retention in the amount of $979,285.78, and approve settlement in the amount of $2.5 million in the matter of Montes v. AC Transit, Claim No. 12-4120, ACSC Case No. RG1370772. The motion carried by the following vote:
AYES:6: Peeples, Wallace, Harper, Williams, Young, Ortiz, ABSENT:1: Davis MOTION: PEEPLES/WALLACE to approve settlement in the amount of
$135,000 in the matter of Henderson v. AC Transit, ACSC Case No. RG13687612. The motion carried by the following vote: AYES: 4: Peeples, Wallace, Harper, Young ABSENT: 3: Williams, Ortiz (out of seat), Davis
7A. Conference with Legal Counsel- Existing litigation (Government Code Section 54956.9 (a)) Montes v. AC Transit, Cla"1m No. 12-4120, ACSC Case No. RG1370772 Uribe v. AC Transit, Claim No. 14-1027, ACSC Case No. RG14745845 (Pulled off) Henderson v. AC Transit, ACSC Case No. RG13687612
78.
Conference with legal Counsel- Potential litigation (Government Code Section S4956.9(b)) (Two Cases)
7C. i Conference with Labor Negotiators (Government Code Section 54957.6): Agency Designated Representative: Interim General Manager Employee Organizations: ATU Local 192, AFSCME local 3916, IBEW Local 1245, Unrepresented Employees
70.
Conference with Labor Negotiators (Government Code Section 54957.6); Negotiators: H.E. Christian Peeples, Board President/ Michael Foster, Foster Employment law Unrepresented Employees: Interim General Manager, Acting General Manager
7E.
Public Employee Performance Evaluation (Government Code Section 54957) Title: Interim General Manager, General Counsel, District Secretary
8,
AGENDA PLANNING Referred to future Board of Directors Meeting Director Harper requested that staff prepare a resolution in support of the preservation of a possible exit ramp for the contra flow lane, and research what near-term actions might be taken in furtherance of that resolution (Director Ortiz concurred).
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9.
INFORMATION
GENERAL MANAGER'S REPORT
The General Manager's report is attached as Exhibit A and is incorporated Into t he minutes by reference. 10.
ONLY
BOARD/STAFF COMMENTS
Members of the Board commented on meetings and events attended since the last meeting. 11.
ADJOURNMENT
There being no further business to come before the Board of Directors, the meeti ng was adjourned at 6:42 p.m. The next meeting of the Board of Directors is scheduled for Wednesday, May 13, 2015 at 5:00 p.m. Respectfu lly submitted,
~~ District Secretary
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