| Finance Committee - May 18, 2004 |
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Please click here for a PDF version of the agenda FINANCE COMMITTEEMeeting Notice 1. Roll Call 2. Approval of Minutes of the April 20, 2004 Meeting - ACTION* (attachment 1) 3. Recommend an Increase in the Amount of $30,000 to the Contract with the City Attorney, for Legal Counsel Services, for a Total Contract Amount of $60,000, and Amend the FY 2003/04 Budget to Add $30,000 to the Professional Administrative Services Line Item – ACTION* (attachment 2) In addition to independent outside counsel, the Authority maintains a contract with the City Attorney's Office for routine consultation on administrative, personnel and contract issues. A number of issues have come up during the course of this fiscal year, necessitating the use of these services beyond what was originally budgeted in the contract. This includes technical issues related to the environmental clearance of the Prop K Expenditure Plan and Countywide Transportation Plan, CEQA issues related to the LOS Monitoring SAR and advice on potential litigation by third parties. We planned to bring to the Board a recommendation for a contract amendment in December, as part of the mid-year budget adjustment process, but all such actions were delayed several months pending the acceptance of the annual fiscal audit. The proposed increase of $30,000 will defray the costs beyond the original contract amount and ensure that sufficient funds are available for services through June 30, 2004. We are seeking a recommendation for an increase in the amount of $30,000 to the Contract with the City Attorney for legal counsel services, and for an amendment to the FY 2003/04 budget to increase the Professional Administrative Services line item by $30,000. 4. Recommend Acceptance of the Single Audit Report for FY 2002/03 – ACTION* (attachment 3) In addition to the requirements contained in state law for an annual fiscal audit, pursuant to regulations contained in OMB Circular A-133 the Authority is also subject to audits on the federal grants it administers. These requirements, known as Single Audit requirements, are usually fulfilled by the same auditors that conduct our annual fiscal audit. This year, however, the Board chose to adopt the audit prepared by the Controller of the City and County of San Francisco. The Controller's audit scope did not include the federal Single Audit. We therefore contracted with the CPA firm of Macias Gini to complete the Single Audit. The audit report is attached. We are seeking a recommendation to accept the Single Audit Report for FY 2002/03. 5. Recommend Adoption of the Revised FY 2003/04 Mid-Year Budget – ACTION* (attachment 4) Every year between December and March we bring the Board adjustments to the organizational budget adopted the previous June. We are presenting this year's adjustment in May because of the extended duration of the FY 2003/04 fiscal audit. The Revised FY 2003/04 Mid-Year Budget is an opportunity to take stock of changes in revenue trends, recognize grants or other funds that are obtained subsequent to the original budget approval, and adjust for unforeseen expenses. An initial adjustment was adopted concurrently with approval of the Commercial Paper program, to reflect final audited numbers. The Mid-Year Budget shows that, while there was some movement within revenue categories, overall receipts remained essentially flat (decreasing slightly by $95K). An increase in Prop. K revenues primarily due to $4.7 million in funding deobligations during the fiscal year was offset by a decrease in Octavia Boulevard-related revenues due to a delay in land parcel sales and construction, eliminating the need for debt issuance to support the Octavia Boulevard scope of work. Of the $21.7 million decrease in capital expenditures, lower Prop. K project and programs grant allocation levels accounted for $14.0 M, partly represented by extended delivery schedules on Muni Metro East and other projects, and CMA capital expenditures were $8.2 million lower than expected, reflecting the Octavia Boulevard construction delays. Relatively minor increases are noted in professional and vendor services, as well as in personnel, reflecting the Board-approved reorganization of the finance section, the heightened level of Authority activity on a number of studies and projects, as well as various Board requests for analyses. We are seeking a recommendation to adopt the revised FY 2003/04 Mid-Year budget, as presented. 6. Recommend Adoption of a Position of Support for AB2468 (Yee), as presented. (Yee) –ACTION* (attachment 5) AB2468 (Yee) is intended to help address the high number of pedestrian injuries and fatalities on 19 th Avenue by creating a Safety Enhancement-Double Fine Zone on State Highway 1 in San Francisco from the intersection of 19th Avenue and Junipero/Serra Boulevard to the intersection of State Highway Route 1 and Lake Street. The bill would double the fines for certain moving violations such as speeding or driving under the influence until January 1, 2006 unless a subsequent statute is enacted that would delete or extend the sunset date for the double fine zone. AB2468 would complement other efforts underway to improve safety in the 19 th Avenue corridor including the joint Caltrans/DPT signal upgrade project that will improve signal visibility and install pedestrian countdown timers throughout the corridor. We are recommending adoption of a position of support for AB2468, as presented. 7. Authority's Draft FY 2004/05 Budget – INFORMATION* (attachment 6) The draft annual budget for FY 2004/05 addresses projected capital expenses, project development support, planning, administrative and program oversight activities required of the Authority in its roles as Prop K Administrator, Program Manager for TFCA and Congestion Management Agency for San Francisco. The budget reflects the proposed reorganization in order to address the additional demands placed on staff by the added complexity of the Prop K Expenditure Plan, which includes many new categories and a number of large, complex capital projects. The Authority is forecasting Prop. K capital allocations of $186 million for the budget year, with the Third Street Light Rail Project accounting for $117 million of the projected need. The Authority is planning to issue approximately $120 million in additional (already authorized) Commercial Paper notes to meet cash flow demands of the work program. The budget assumes minimal growth in Prop K sales tax receipts during the budget year due to the slow economy and based on sales tax revenue forecasts by the California Department of Finance, and the City and County of San Francisco- Budget & Analysis Division. State statutes call for adoption of the Authority's Annual Budget by June 30, 2003. We are seeking comments from the Committee on the Draft Budget for FY 2004/05. This is an information item. 8. Introduction of New Items – INFORMATION 9. Public Comment 10. Adjournment Please note that the meeting proceedings can be viewed live at http://www.sfgov.org/sfgtv or that evening at 6:00 pm on Cable Channel 26 in San Francisco, with a repeat on the weekend (either Saturday or Sunday evening). To know the exact cablecast times for weekend viewing, please call SFGTV at (415) 557-4293 on Friday when the cablecast times have been determined. In order to assist the City's efforts to accommodate persons with severe allergies, environmental illnesses, multiple chemical sensitivity or related disabilities, attendees at all public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the City accommodate these individuals. To obtain a disability-related modification or accommodation, including auxiliary aids or services, to participate in the meeting, please contact Pooja Jhunjhunwala at 415.522.4800 at least two business days before the meeting. 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