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New Time and New Location ADMINISTRATION & FINANCE COMMITTEE MEETING AGENDA Tuesday, January 8, 2019 9:30 a.m. Candace Andersen's Office, 3338 Mt. Diablo Blvd. Lafayette, CA 94549 NEW TIME AND NEW LOCATION The committee may take action on each item on the agenda. The action may consist of the recommended action, a related action or no action. Staff recommendations are subject to action and/or change by the committee. 1. Approval of Agenda 2. Public Communication 3. Approval of Minutes of December 4, 2018* 4. CCCTA Investment Policy-Quarterly Reporting Requirement* 5. Income Statements for the Three Months Ended September 30, 2018* 6. Independent Accountant’s report on Federal Transit Administration National Transit Database Reports* (Staff will request that the committee approve the report and forward to the Board.) 7. Proposal for Financial Audit Services* (Staff will ask for direction to accept or reject the proposal from Brown Armstrong.) 8. Route 99X Promotion* (Information Only) 9. Contra Costa Transportation Authority’s Accessible Transportation Strategic (ATS) Plan* (Staff will requests the committee forward this item to the board for discussion, feedback and direction in responding to CCTA’s request for feedback regarding the attached MOU prior to the end of January 2019.) _____________________________________________________________________________________ *Enclosure **Enclosure for Committee Members ***To be mailed under separate cover ****To be available at the meeting. FY2018/2019 A&F Committee Don Tatzin – Lafayette, Al Dessayer-Moraga, Kevin Wilk-Walnut Creek 10. Final Fare Restructure Proposal & Title VI Analysis* (Staff will present the final fare proposal and corresponding Title VI analysis. Staff will request the item be forwarded to Board for approval.) 11. February Board Workshop Reminder – Verbal Report 12. Review of Vendor Bills, December 2018** 13. Approval of Legal Services Statement, October 2018 –General and Labor** 14. Next Scheduled Meeting – February 13, 2019 15. Adjournment General Information Public Comment: Each person wishing to address the committee is requested to complete a Speakers Card for submittal to the Committee Chair before the meeting convenes or the applicable agenda item is discussed. Persons who address the Committee are also asked to furnish a copy of any written statement to the Committee Chair. Persons who wish to speak on matters set for Public Hearings will be heard when the Chair calls for comments from the public. After individuals have spoken, the Public Hearing is closed and the matter is subject to discussion and action by the Committee. A period of thirty (30) minutes has been allocated for public comments concerning items of interest within the subject matter jurisdiction of the Committee. Each individual will be allotted three minutes, which may be extended at the discretion of the Committee Chair. Consent Items: All matters listed under the Consent Calendar are considered by the committee to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a committee member or a member of the public prior to when the committee votes on the motion to adopt. Availability of Public Records: All public records relating to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body, will be available for public inspection at 2477 Arnold Industrial Way, Concord, California, at the same time that the public records are distributed or made available to the legislative body. The agenda and enclosures for this meeting are posted also on our website at www.countyconnection.com. Accessible Public Meetings: Upon request, County Connection will provide written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings. Please send a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service so that it is received by County Connection at least 48 hours before the meeting convenes. Requests should be sent to the Assistant to the General Manager, Lathina Hill, at 2477 Arnold Industrial Way, Concord, CA 94520 or [email protected]. Shuttle Service: With 24-hour notice, a County Connection LINK shuttle can be available at the BART station nearest the meeting location for individuals who want to attend the meeting. To arrange for the shuttle service, please call Katrina Lewis – 925/680 2072, no later than 24 hours prior to the start of the meeting. Currently Scheduled Board and Committee Meetings Board of Directors: January 17, 9:00 a.m., County Connection Board Room Administration & Finance: Tuesday, February 13, 9:30 a.m., Supervisor Andersen's Office, 3338 Mt. Diablo Blvd. Lafayette, CA 9454 Advisory Committee: TBA. County Connection Board Room Marketing, Planning & Legislative: Thursday, January 10, 8:30 a.m., Supervisor Andersen's Office, 3338 Mt. Diablo Blvd. Lafayette, CA 9454 Operations & Scheduling: Friday, January 4, 8:15 a.m. Supervisor Andersen's Office, 3338 Mt. Diablo Blvd. Lafayette, CA 9454 The above meeting schedules are subject to change. Please check the County Connection Website (www.countyconnection.com) or contact County Connection staff at 925/676-1976 to verify date, time and location prior to attending a meeting. This agenda is posted on County Connection’s Website (www.countyconnection.com) and at the County Connection Administrative Offices, 2477 Arnold Industrial Way, Concord, California Administration and Finance Committee Summary Minutes December 4, 2018 The meeting was called to order at 9:00 a.m. at the Walnut Creek offices of Hanson Bridgett. Those in attendance were: Committee Members: Director Al Dessayer Director Don Tatzin Director Kevin Wilk Staff: General Manager Rick Ramacier Chief Financial Officer Erick Cheung Chief Operating Officer Scott Mitchell Accounting Manager Karol McCarty Guests: None 1. Approval of Agenda- Approved. 2. Public Communication- None. 3. Approval of Minutes of October 31, 2018- Approved. 4. Presentation of the Fiscal Year 2018 Audit– Rosalva Flores, the Brown Armstrong partner in charge of the FY 2018 audit, reported by telephone on the audit. She reported that the audit report is unmodified, no findings, no material weaknesses nor deficiencies were identified and no material noncompliance issues were noted. She thanked County Connection’s financial staff for working with her staff in completing the audit. Mr. Cheung thanked Ms. Flores and her team, he also thanked finance staff and all of the various County Connection departments involved in the audit. The Committee provided suggestion on the Management Discussion and Analysis (MD&A) section of the financial statements to modify the language of the ballot measure to repeal Senate Bill 1. Mr. Cheung stated that the draft MD&A was completed prior to the election date and was not known at that time the outcome of the proposition and will amend the current draft. The Committee recommended to the Board that the audit report be approved with that suggestion. 5. Issue Request for Proposal Financial Audit Services– Mr. Cheung reported the Board extended Brown Armstrong earlier this year to complete the FY 2018 audit and was planning to release a Request for Proposal (RFP). The Committee was complimentary of the services provided by Brown Armstrong, which staff was in concurrence with. Director Dessayer and Director Tatzin discussed the staff time and costs associated with the RFP. The Committee requested that staff ask Brown Armstrong to provide a cost proposal for the next three years, and bring the item back to the Committee for consideration. Mr. Cheung needed to inquire with Ms. Flores of Brown Armstrong on the proposal and possible partner rotation due to State Law. The item is continued till the January meeting. 6. PERS Actuarial Valuation for June 30, 2017; Rate for FY 2019-20- Mr. Cheung reported that the employer rate for PERS retirement for FY 2018 will be 8.313% and unfunded liability payment of $349,903. County Connection’s funded status is currently 91.5%, which is up from 88.9% in the previous year due to investment return of 11.2% for FY 2017 over the discount rate of 7.5%. The projections from CalPERS for future years reflects an increase in the unfunded liability payment due to the last couple of years returns of 2.4% for FY 2015 and 0.6% for FY 2016, which has been slightly offset by the 11.2% for FY 2017. The unfunded liability payments will be $350K in FY 2020, $548K in FY 2021, $762K in FY 2022, $928K in FY 2023, $980K in FY 2024 and $1.1M in FY 2025. This is a net decrease of $1.5 million over a six-year period on the unfunded liability payment in comparison to the previous year estimate. Staff will incorporate the revised payments and contribution rates in the FY 2020 Budget and Ten Year Forecast. Information only. 7. Emergency Procurement for Upgrade and Replacement of Existing Fire Alarm System- Mr. Mitchell reported that during October 2018, Johnson Controls informed County Connection that there are, “Deficiencies/impairments in our fire alarm system can result in unintended operation or failure of the system to operate.” They strongly recommended immediate correction and provided a quotation in the amount of $179,600 for upgrading and replacing the fire alarm system. County Connection is a member of NJPA (National Joint Powers Alliance) and we are able to utilize the competitive bid of a Johnson Controls system to meet our needs. This project would include replacing all fire panels, horns, lights, pull stations, and wiring throughout the property. The funding for the fire system is from State Proposition 1B. The Committee approved that the Board of Directors authorize the General Manager to enter into a contract with Johnson Controls for the upgrade and replacement of the fire alarm system for consent on the Board agenda.
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