Finance Committee - December 6, 2011

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Meeting Notice

Date:                       11:00 a.m. Tuesday, December 6, 2011
Location:                Room 263, City Hall
Commissioners:     Commissioners Mar (Chair), Elsbernd (Vice Chair), Cohen, Farrell, Kim and Mirkarimi (Ex Officio)
Clerk:                      Erika Cheng


1.                   Roll Call

2.                  Approve the Minutes of the November 8, 2011 Meeting - ACTION* attachment

3.                  Recommend Acceptance of the Audit Report for the Fiscal Year Ended June 30, 2011 - ACTION* attachment

The Authority's financial records are required to be audited annually by an independent, certified public accountant. The annual audit (Audit Report) for the year ended June 30, 2011 was conducted in accordance with generally accepted auditing standards by the independent, certified public accounting firm of Macias, Gini & O'Connell, LLP (Macias Gini). Macias Gini is also the auditor for the City and County of San Francisco.  The Authority received an unqualified (clean) audit opinion from Macias Gini, with no recommendations for improvements. For the fiscal audit, Macias Gini has issued an opinion, stating that the financial statements present fairly and accurately, in all material respects, the financial position of the Authority.  Since more than $500,000 in federal grants was expended during the year, a single audit (compliance audit) was performed on federal awards, including the Presidio Parkway (Doyle Drive Replacement Project) project, Yerba Buena Island Project, and Surface Transportation Plan funds. For the single audit, Macias Gini has issued an opinion, stating the Authority complied in all material respects with the requirements associated with the use of federal funds.   The full audit report and a separate report containing other required communications to the Finance Committee are attached. We are seeking a recommendation to accept the Audit Report for the fiscal year ended June 30, 2011.

4.                  Recommend Authorizing the Executive Director to Execute a Memorandum of Agreement with the Treasure Island Development Authority, in an Amount Not to Exceed $100,000, for the Fiscal Year 2011/12 Operating Budget and Work Plan to Initiate Implementation of the Treasure Island Transportation Program and Authorizing the Executive Director to Negotiate the Agreement Terms and Conditions - ACTION* attachment

California State Assembly Bill No. 981, the Treasure Island Transportation Management Act, authorized the Board of Supervisors (BOS) of the City and County of San Francisco to designate a board or agency to act as the transportation management agency for Treasure Island, now referred to as the Treasure Island Mobility Management Agency (TIMMA). Following the approval of the Treasure Island/Yerba Buena Island Development Project (Project) in June 2011, the Treasure Island Development Authority (TIDA) and Authority, together with Treasure Island Community Development, LLC (TICD), the private development partner for the Project, agreed that the Authority would act as TIMMA, and would begin the implementation of a comprehensive and integrated transportation program to manage travel demand on the island as the Project develops. On October 25, 2011, through Resolution No. 12-16, the Authority Board recommended that the TIDA Board and the BOS designate the Authority as the TIMMA to implement the Treasure Island Transportation Program, authorize a partnership Memorandum of Agreement (MOA) between the Authority and TIDA, and authorize negotiation of initial operating contracts and development of TIMMA formation documents for consideration by the Authority Board by March 31, 2012. Since that time, the parties have identified a Fiscal Year 2011/12 work plan comprised of agency formation, planning and grant-writing activities, and a corresponding budget up to an amount not to exceed $100,000. We are seeking a recommendation for authorizing the Executive Director to execute a MOA with TIDA, in an amount not to exceed $100,000, for the Fiscal Year 2011/12 operating budget and work plan to initiate implementation of the Treasure Island Transportation Program and authorizing the Executive Director to negotiate the agreement terms and conditions.

5.                  Recommend Increasing the Amount of the Legal Services Contract with Nossaman LLP by $330,000, to a Total Amount Not To Exceed $960,000, to Provide General Legal Counsel Services and Authorizing the Executive Director to Modify Contract Terms and Conditions - ACTION* attachment

The Authority contracts with the City Attorney for certain routine legal matters, with Nixon Peabody LLP and Squire, Sanders & Dempsey  LLP as co-bond counsel for the Authority's commercial paper program, and with Nossaman LLP as general counsel specialized in transportation matters. In March 2010, through approval of Resolution 10-46, the Board authorized a three-year contract, with an option for two one-year extensions, to Nossaman LLP to provide general legal counsel services. The contract had an initial budget of $630,000.  The original budget for this contract provided adequate funds for professional legal services related to the operation of public entities and for general counsel services. However, the original budget did not anticipate costs for legal services associated with the litigation on the Presidio Parkway project. This amendment request will replenish the contract amount spent on preparing necessary documents and providing legal representation in court as required to respond to the lawsuit, as well as provide additional capacity to assist with the formation of the Treasure Island Mobility Management Agency. We are seeking a recommendation for increasing the amount of the legal services contract with Nossaman LLP by $330,000, to a total amount not to exceed $960,000, to provide general legal counsel services and authorizing the Executive Director to modify the contract terms and conditions.

6.                  Introduction of New Items - INFORMATION

7.                  Public Comment

8.                  Adjournment



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