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Long Beach Transit Long Beach Transit Board of Directors Barbara Sullivan George, Chair Freda Hinsche Otto, Vice Chair Lori Ann Farrell, Secretary/Treasurer Maricela de Rivera, Director Donald M. First, Director Victor Irwin, Director Dr. James P. Norman, Jr., Director Michael Conway, City Representative David Roseman, City Representative President and Chief Executive Officer Laurence W. Jackson Long Beach Public Transportation Company Board of Directors Regular Meeting May 20, 2013 12:00 P.M. Long Beach City Hall City Council Chambers 333 West Ocean Boulevard Long Beach, California 90802 Agenda 1. Call to Order. Barbara Sullivan George 2. Roll Call. Olga Livingston 3. Approval of Minutes of Board Meeting held April 22, 2013. Barbara Sullivan George RECEIVE AND FILE 4. Employees of the Month for May, 2013. Marcelle Epley Angel Carillo, Operations Roberto Vargas, Maintenance Vivian Garcia, Staff 5. Financial Report for the Month of April, 2013. Lisa Patton RECEIVE AND FILE 6. FTA Triennial Report. Lisa Patton RECEIVE AND FILE 7. Statement of Investment Policy. Lisa Patton An annual review by the Board is required. STAFF RECOMMENDATION: Approve the Company’s Statement of Investment Policy. 8. FY 2013 – 2015 Strategic Business Plan Update. Marcelle Epley A review by the Board is required. STAFF RECOMMENDATION: Adopt the Company’s updated 2013-2015 Strategic Business Plan 9. Executive Session – Pursuant to California Government Code Section 54957 (b) (1) Position: President/Chief Executive Officer, Executive Search Update. 10. Electric Bus Project Update. Rolando Cruz INFORMATION 11. Public Comment Any member of the public may approach the lectern and, upon recognition by the Chairperson, state his or her name and address for the record and proceed to address the Board on any item within the subject matter jurisdiction of the Board, provided that no action may be taken on off-agenda items unless authorized by law. Comments shall be limited to three (3) minutes for all comments, unless different time limits are set by the Chairperson, subject to the approval of the Board. 12. Adjourn. The next regular meeting will be held Monday, June 24, 2013. NOTE: The City of Long Beach intends to provide reasonable accommodations in accordance with the Americans with Disabilities Act of 1990. If special accommodation is desired, please call the City Clerk Department 48 hours* prior to the meeting at 570-6101. (* The City Clerk's office is closed on weekends. To assure proper accommodations please call by 4:30 p.m. on the Friday prior to the meeting.) (Telecommunication Device for the Deaf – Please call 570-6626. Inquire at the City Council Chamber Audio Visual Room for Assistive Listening Device.) AGENDA ITEM NO. 7: STATEMENT OF INVESTMENT POLICY We are requesting the Board’s approval of the Company’s Statement of Investment Policy which is pursuant to annual review. Background The Statement of Investment Policy establishes policies and procedures for Long Beach Transit’s cash management system and investment activities. The policy applies to all financial assets of the Company, excluding pension plan assets which are covered under a separate investment policy. The California Government Code requires an annual review and adoption of the Company’s Investment Policy. Each year staff evaluates the policy to ensure it meets the objectives of preservation of principal, liquidity, yield, safety, compliance with current law, Governmental Accounting Standards Board (GASB), and the needs of Long Beach Transit. There were no changes during the last year to the California Government Code, GASB or the State of California’s Local Agency Investment Fund (LAIF) Policy which require amendments to our existing investment policy. Therefore, the Company’s Statement of Investment Policy remains unchanged. As detailed in the Quarterly Investment Reports, Long Beach Transit’s investments continue to be handled by the State of California’s Local Agency Investment Fund (LAIF) and the Corporate Investment Account which contains investment vehicles similarly structured to LAIF. STAFF RECOMMENDATION: Approve the Company’s Statement of Investment Policy. AGENDA ITEM NO. 8: FY 2013 – 2015 STRATEGIC BUSINESS PLAN UPDATE Long Beach Transit Memorandum To: Long Beach Transit Board of Directors From: Marcelle Epley, Chief Administrative Officer & Senior Vice President Date: May 20, 2013 Re: Long Beach Transit Strategic Business Plan: Fiscal Year (FY) 2014 Update Attached for the Board's adoption is the updated FY 2013-2015 Long Beach Transit Strategic Business Plan. Information in this plan reflects current key economic markers that impact our anticipated funding levels, service demand and overall business direction heading into FY 2014. The FY 2013-2015 Strategic Business Plan serves as a planning document at the highest level of the day-to-day operations of the organization, to which we are developing the FY 2014 operating and capital budgets that will be presented to the Board in June. The following is a brief summary of information that has been updated in the plan. Funding Outlook Considering that 60% of Long Beach Transit’s operating income comes from county and state subsidies that are sales tax based, unemployment and consumer confidence play a major role in anticipating funding levels. Compared to early 2012, national, state and local unemployment rates have dropped. More people are returning to work and have discretionary income that support increased sales tax revenue. Alongside this trend, consumer confidence has remained virtually unchanged, but remains well above devastating levels seen at the height of the recession. These two indicators support the prediction provided to the Board last year in the FY 2013-2015 Strategic Business Plan that the economy would begin to improve. These optimistic signs show a recovering economy and a sign that county and state subsidies will begin to rise. Ridership Outlook While our region is not experiencing $5 per gallon gas prices seen in parts of California in 2012, southern California gas prices remain relatively high around $4 per gallon, and continue to persuade residents to leave their cars at home and ride public transportation. Further, the desire to take public transportation to be “green” and clean up our environment continues to increase patronage from discretionary riders. These factors, in conjunction with increased housing density and a growing proportion of senior citizens, point to increasing demand. Organizational Priorities While this updated information does not significantly impact the initial business direction outlined in the FY 2013-2015 Strategic Business Plan, it does support the original goals of achieving our mission and corporate standards of excellence, budgeting conservatively, May 16, 2013 focusing on cost efficiency, modestly enhancing our service within our financial means, investing in employee skill development, improving the quality that we communicate with our customers, and seeking out alternative revenue sources. 2 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT Chapter 1 – Executive Summary……………………….…….…01 Chapter 2 – Review Scope and Methodology………….…07 Chapter 3 – Program Compliance………………………………11 Chapter 4 – Prior Recommendations…………………………17 TABLE OF CONTENTS Chapter 5 – Data Reporting Analysis...........................21 Chapter 6 – Performance Analysis...............................25 Chapter 7 – Functional Review………………………………….43 Chapter 8 – Findings and Recommendations…………….61 MOORE & ASSOCIATES, INC. LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT This page intentionally left blank. MOORE & ASSOCIATES, INC. LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT 1. EXECUTIVE SUMMARY MOORE & ASSOCIATES, INC. PAGE 1 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT This page intentionally left blank . MOORE & ASSOCIATES, INC. PAGE 2 LONG BEACH PUBLIC TRANSPORTATION COMPANY – TRIENNIAL PERFORMANCE REVIEW PREFINAL DRAFT REPORT CHAPTER 1 – EXECUTIVE SUMMARY The Triennial Performance Review (TPR) of Long Beach Transit’s public transit program covers a three- year period ending June 30, 2012. The California Public Utilities Code requires all recipients of Transit Development Act (TDA) funding to complete an independent review on a three-year cycle in order to maintain funding eligibility. This chapter summarizes key findings and recommendations developed during the Triennial Performance Review (TPR) of Long Beach Transit’s public transit program for the period defined as: • Fiscal Year 2009/10, • Fiscal Year 2010/11, and • Fiscal Year 2011/12. The Triennial Performance Review was conducted in accordance with the processes established by the California Department of Transportation (Caltrans), as outlined in the Performance Audit Guidebook for Transit Operators and Regional Transportation Planning Entities , as well as Government Audit Standards published by the U.S. Comptroller General. The Triennial Performance Review includes five elements: • Compliance requirements, • Follow-up of prior report recommendations, • Analysis of program data reporting, • Performance review, and • Functional review. Description of Transit Program The City of Long Beach began operating public transit service in 1963 when the City became the sole shareholder in the newly-formed Long Beach Public Transportation Company. Marketed as Long Beach Transit, the
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