Budget and Finance Committee Meeting Tuesday, December 11, 2018, 4:00 p.m. DART Conference Room C - 1st Floor 1401 Pacific Ave., Dallas, Texas 75202

Transcription

1 Quorum = 5 AGENDA Budget and Finance Committee Meeting Tuesday, December, 208, 4:00 p.m. DART Conference Room C - st Floor 40 Pacific Ave., Dallas, Texas Approval of Minutes: November 3, Contract Modification for Depository Bank Services (Paul N. Wageman/Gary Thomas) 3. *Update on Activities Relating to Financing of Cotton Belt Regional Rail Project (Paul N. Wageman/Gary Thomas) 4. *Briefing on Series 2009B Taxable Build America Bond Refunding (Paul N. Wageman/Gary Thomas) 5. *Briefing on the Current Status of 40 Pacific Space Utilization, Remodeling, and Relocation Options Analysis (Paul N. Wageman/Gary Thomas) 6. *Briefing on Fare Structure Fare Change Frequency (Paul N. Wageman/Gary Thomas) 7. Identification of Future Agenda Items 8. Adjournment *This Is A Briefing Item Only The Budget and Finance Committee may go into Closed Session under the Texas Open Meetings Act, Section 55.07, Consultation with Attorney, for any legal issues, under Section Deliberation Regarding Real Property for Real Estate issues, arising or regarding any item listed on this Agenda. This facility is wheelchair accessible. For accommodations for the hearing impaired, sign interpretation is available. Please contact Community Affairs at , 48 hours in advance. Chair Paul N. Wageman Vice Chair Jon-Bertrell Killen Members Mark Enoch, Tim Hayden, Ray Jackson, Patrick J. Kennedy, Michele Wong Krause, Gary Slagel, and Lissa Smith Staff Liaison Gary Thomas

2 AGENDA ITEM NO. MINUTES DALLAS AREA RAPID TRANSIT BUDGET AND FINANCE COMMITTEE MEETLNG November 3, 208 The Dallas Area Rapid Transit Budget and Finance Committee meeting convened at 3 :25 p.m., Tuesday, November 3, 20 8, at DART Headquarters, 40 Pacific Avenue, Dallas, Texas, with Chair Wageman presiding. The following Committee members were present: Paul N. Wageman, Jon-Berell Killen, Tim Hayden, Ray Jackson, Patrick J. Kennedy, Gary Slagel, and Lissa Smith. Other Board members present: Jonathan R. Kelly, and Sue S. Bauman. Others present: Gary Thomas, Gene Gamez, Joseph Costello, Dwight Burns, Todd Plesko, Steve Salin, Cheryl Orr, Nicole Fontayne-Bardowell, Katina Morch-Pierre, John Adler, Al Bazis, Donna Henry, Nancy Johnson, and Josefina Chavira.. 2. Approval of M inutes: October 30, 208 Mr. Slagel made a motion to approve the Minutes from the October 30, 208, Budget and Finance Committee Meeting and enter into record as written. Ms. Smith seconded and the item was approved by a unanimous vote. *Update on Activities Relating to Financing of Cotton Belt Regional Rail Project Mr. Joseph Costello, Senior Vice President of Finance, briefed the Committee. Mr. Kelly stepped out of the meeting at 3 :28 p.m. Mr. Gary Thomas, President/Executive Director, interjected that the Build America Bureau had approved DART' s Record of Decision as of earlier in the morning. Mr. Kennedy entered the meeting at 3 :30 p.m. Mr. Costello continued to brief the Committee. Chair Wageman questioned Mr. Thomas regarding the contracts that were being worked on the previous week. Mr. Thomas provided information regarding the two contracts and would present their findings at the December th meeting. Mr. Slagel questioned the timeline if DART must select the second firm. Mr. Thomas responded that would only depend on the scheduling. Ms. Bauman stepped out of the meeting at 3:36 p.m. 3. *Briefing on Fare Structure - Programs Mr. Costello briefed the Committee (see handout on file with the Office of Board Support) as follows: Calendar (slide I).3.20& B&F Minutcs.docx 2/4208: 8:00 i\.t--t

3 Presentation Outline (slide 2) Ms. Bauman reentered the meeting at 3:38 p.m. Ridership Demographics (slidcs3-5) Trip Purpose (slide 6) Number of Vehicles Used to Complete One-way Trip (slide 7) Rider Gender/Ethnicity (slide S) Number of Working Vehicles in Household (slide 9) Total Household Income (slide 0) Employment (slidell) Chair Wageman noted what stood out to him was the ridership from the Hispanic community is significantly below its population percentage. He then requested, if DART was conducting a study, this information be highlighted. Chair Wageman continued, if it continues to trend below its percentage of its population, based on all these factors, he would ask, what is the agency going to do about that, in reference to direct marketing, such as a Spanish language marketing. Mr. Costello continued with the briefing as follows : Programs (slide 2) Ms. Smith questioned, in regards to the children in elementary through middle school, do they have to attend a school that is in the DART service area. Mr. Costello responded yes. Ms. Smith then asked how a student knows if they are in the service area or not. Mr. Costello responded the language, concerning the schools in the service area, is included in the fare structure. He continued, a student must be able to prove, by providing a Student Identification of a school in the service area, when they go to purchase a discounted ticket. Mr. Costello continued with the briefing as follows: Payment System - Stored Value (slide 4) Potential Approaches (slide 6) Peer Review (slides 7-9) Administrative Requirements (slide 20) Estimated Revenue Impact (slides 2-27) Mr. Stopfer entered the meeting at 3:56 p.m. Analysis (slide 29) Chair Wageman stepped out of the meeting at 3:58 p.m., delegating the chair responsibilities to Vice-Chair Killen. Recap (slide 30) Calendar (slide 3 ) Mr. Kennedy remarked, regarding slide 2, Programs, while at the American Public Transportation Association {APTA) conference, he and former Board Member Catherine S. Cuellar, saw a presentation, given by the Kansas City Transit Director, where they had been reaching out to non-profits to apply for grants to provide free transit, since the transit agency was unable to. He noted there was no budget change to Kansas City. Mr. Kennedy B&F l\linutes.docx 2 I 24/20 8: 8:00 A.~L

4 opined there may be many nonprofits that would like to partner on a project such as this, and would make this potentially an opportunity. After further discussion, Mr. Kennedy stated he still wanted to advocate for the creation of a fund, which is why he asked about the market analysis related to property. He opined, rather than being reactive, and waiting for unsolicited proposals to come to DART for TOD opportunities, if the agency has a market analysis and know where their five best properties are located, the agency is being proacti ve in looking for top dollar returns on some of those. Mr. Kennedy stated those were potentially revenues that would be annualized as groundlease revenue that could go into a fund to off-set future fare increase revenue. He stated this is something he would like to see DART pursue. In reference to slide 2, Programs, Vice-Chair Killen noted how the programs are essentially grouped into groups of age-based children, and seniors with disabilities, as well as students. He then remarked, to the extent that DART has already made the position that the agency does want to service low-income individuals and offer them a reduced fare. Vice-Chair Killen then asked, since this current briefing is specifically on programs, and there will be another one following this about the cadence of changes, is this the place where, if the Committee has any ideas or they have a specific desire should be noted now or will there be other opportunities. Mr. Costello responded the schedule he laid out was to make sure staff did not forget any of the elements, by providing background, DART' s programs, the frequency that they increase fares, and ideally, lead up to a possible change to the policy or standard, should the Committee conclude that would be their decision. Ms. Bauman inquired if staff had considered following the guidelines, established by the State of Texas, defining poverty. She further noted, the State, and Federal, governments, have insti tutions, that are authorized, to define who is in poverty by definition and receive benefits. Ms. Bauman questioned why DART did not uti lize those agencies for information. Vice-Chair Killen responded DART could utilize these agencies. He then recommended staff look into other possible solutions. 4. Identification of Future Agenda Items There were no future agenda items identified for this committee. 5. Adjournment There being no further business to discuss, the meeting was adjourned at 4: 3 p.m. ca~-u~ JosemaChavira, CAP Board Committee Secretary /jc +Same Night Item *Briefing Item B&F Minutes.docx 3 2/420 8: 8:00 A.M

5 AGENDA ITEM NO. 2 Agenda Report Attachments:. Contract Award Analysis 2. M/WBE Details Voting Requirements: Majority DATE: December, 208 SUBJECT: Contract Modification for Depository Bank Services RECOMMENDATION Approval of a resolution authorizing the President/Executive Director or his designee to execute a contract modification for depository bank services with Bank of America, N.A. [Contract No. C ] to exercise two, one-year options. FINANCIAL CONSIDERATIONS. This contract modification for depository banking services is included in the approved FY 209 Debt Service Budget.. Sufficient funding for this contract modification in the amount of $257,000 is included in the approved FY 209 Debt Service budget and the Total Debt Service Costs line item of the FY 209 Twenty-Year Financial Plan. BUSINESS PURPOSE. DART s banking services contract provides all depository services needed for DART operations, including checking accounts, lockbox deposits, check clearing, coin and currency processing, merchant services, armored car delivery of $ coins to the DART vault, delivery of DART deposits to the bank s vault, and settlement/safekeeping for the agency s multi-million dollar fixed-income securities. Service requirements also include on-line capability for placement of wire transfers, Automated Clearing House (ACH) services for payroll and accounts payable and reporting of daily activity.. DART has implemented depository services that have increased the efficiency of finance operations and financial control, including: ) Positive Pay, under which no check is honored unless preauthorized through transmission of accounts payable and payroll information; 2) full reconciliation of bank accounts to DART-provided issuance information; and 3) paid checks submitted on CD-ROM to facilitate research of paid items. The depository banking services do not include trust services related to DART s debt financing or retirement plans, which are handled through other agreements.. On March 6, 202, (Resolution No ) the Board awarded a seven-year contract with two, one-year options to Bank of America, N.A. The total not-to-exceed amount was approved for $785,334. Bank Contract Extension 2/4/208 9:8:25 AM

6 . Approval of this resolution will help achieve Board Strategic Priority 6: Innovate to improve levels of service, business processes, and funding. PROCUREMENT CONSIDERATIONS. The base term of the contract is seven years with two, one-year options.. The pricing is determined to be fair and reasonable.. The exercise option analysis is provided as Attachment. D/M/WBE CONSIDERATIONS. The goal for this contract was established in 20 at 6% M/WBE participation.. Bank of America, N.A., the prime contractor, has committed to exceed the goal.. The M/WBE analysis and Equal Employment Opportunity (EEO-) information are included in Attachment 2. The prime contractor's actual EEO- report is available upon request. LEGAL CONSIDERATIONS. Section of the Texas Transportation Code authorizes DART to designate one or more banks as depositories for authority funds.. Funds in a depository bank, to the extent that those funds are not insured by the Federal Deposit Insurance Corporation, shall be secured in the manner provided by the Texas Public Funds Collateral Act, Chapter 2257 of the Government Code. Bank Contract Extension 2 2/4/208 9:8:25 AM

7 Dallas Area Rapid Transit Authority EXERCISE OPTION ANALYSIS Modification No. Attachment Contract Information A. Contract Description: Depository Banking Services B. Contractor: Bank of America, N.A C. Contract Number: C D. Contractual Action: Exercise the two, one-year options E. Current Contract Amount: Not to exceed $785,344 F. Contract Modification Amount: $0.00 G. New Contract Amount: Not to exceed $785,344 H. Contract Type: Indefinite Delivery/Indefinite Quantity I. Term of Contract/Performance Period: Seven-year base term with two, one-year options J. Remaining Options Available: None K. Price Considerations: The contract was awarded based on full and open competition. Pricing for both the first and second option years were approved at the time of award. Pricing is determined to be fair and reasonable. L. Negotiation Memorandum: N/A M. Determinations Required: None N. Funding: Local O. Determination of Responsibility: Reference Check: Satisfactory Financial Responsibility Survey: Satisfactory Debarred/Suspended list: Not on the debarred/suspended list Determination and Recommendation Bank of America, N.A is determined to be a responsible contractor for the modification described above. Therefore, execution of the contract modification is recommended. Bank Contract Extension 2/4/208 9:8:25 AM

8 Attachment 2 Contract Modification for the Depository Bank Services The goal for this contract was established in 20 at 6% M/WBE participation. Bank of America, N.A., the prime contractor, has committed to exceed the goal through utilization of the following certified firm: M/WBE CONSIDERATIONS VENDOR LOCATION ETHNICITY SERVICE AMOUNT PERCENT Wai-Wize ILP Dallas, TX Black Male System Integration Services $78, % TOTAL M/WBE PARTICIPATION: $78, % NOTE: The goal is based on the not to exceed amount of $785,344. If there are any changes to this amount, the original goal will apply. *The percentage and dollar amount may remain level, increase or decrease depending on the circumstances. Summary of EEO- Report Bank of America, N.A. is located in Dallas, TX and employs 20,64 individuals. The following is an analysis of their EEO- report: ASIAN BLACK HISPANIC NATIVE AM. WHITE TOTAL Percentage MALES 0,33 7,480 6, ,55 89, % FEMALES,024 7,609 2, ,877 20, % TOTAL 2,57 25,089 8,935,005 44,428 20,64 00% PERCENTAGE 0.05%.9% 9.00% 0.47% 68.57% 00% Bank Contract Extension 2/4/208 9:8:25 AM

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10 AGENDA ITEM NO. 3 Agenda Report DATE: December, 208 SUBJECT: Update on Activities Relating to Financing of Cotton Belt Regional Rail Project RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE. The purpose of this item is to brief the Budget and Finance Committee on the status of discussions with the Build America Bureau regarding DART s Railroad Rehabilitation and Improvement Financing (RRIF) Loan Application for the Cotton Belt Corridor Regional Rail Project.. On September 2, 207 (Resolution No ), the Board approved the Fifteenth Supplemental Debt Resolution to finance the Cotton Belt Corridor Regional Rail Project.. On August 28, 208 (Resolution No ), the Board approved an Amended and Restated Fifteenth Supplemental Debt Resolution for the Cotton Belt project to make changes in the delegation authority set out in Section 3.3 of the Fifteenth Supplemental Debt Resolution. This Resolution rescinds Resolution No The discussion will help achieve Board Strategic Priority 3: Optimize DART s influence in regional transportation planning; Priority 4: Expand DART s transportation system to serve cities inside and outside the current service area; and Priority 6: Innovate to improve levels of service, business processes, and funding. RRIF Loan Briefing 2/4/208 8:50:4 AM

11 AGENDA ITEM NO. 4 Agenda Report DATE: December, 208 SUBJECT: Briefing on Series 2009B Taxable Build America Bond Refunding RECOMMENDATION This is a briefing item. No action required at this time. BUSINESS PURPOSE. The purpose of this item is to discuss viability of a bond refunding in calendar year On May 26, 2009 (Resolution No ), the Board approved a resolution amending and restating the Sixth Supplemental Debt Resolution to allow the use of taxable bonds through the Build America Bureau. The bonds were financially beneficial to public entities at the time.. The bonds under consideration to be refunded are a portion of the Series 2009B bonds. Depending upon market circumstances, it is anticipated that the present value savings could be approximately $20 million.. If market conditions are favorable, the anticipated closing date of the refunding could be as early as April Discussion of this item will help achieve Board Strategic Priority 6: Innovate to improve levels of service, business processes, and funding. BAB Bond Taxable Series 2009B 2/4/208 8:25:44 AM

12 AGENDA ITEM NO. 5 Agenda Report DATE: December, 208 SUBJECT: Briefing on the Current Status of 40 Pacific Space Utilization, Remodeling, and Relocation Options Analysis RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE. The purpose of this item is to brief the Committee on items regarding the analysis of space utilization, remodeling, and relocation options for 40 Pacific.. The presentation will include a review of previous analysis and discussion of upcoming steps to examine the costs and benefits of keeping the DART Headquarters in this building, as well as relocation options.. The discussion of this item will help achieve Board Strategic Priority 6: Innovate to improve levels of service, business processes, and funding. HQ Analysis Briefing 2/7/208 2:29:3 PM

13 AGENDA ITEM NO. 6 Agenda Report DATE: December, 208 SUBJECT: Briefing on Fare Structure Fare Change Frequency RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE. The purpose of this item is to brief the Committee on the frequency and amount of DART fare increases.. On April 22, 997 (Resolution No ), the Board approved the DART Fare Policy III.0, which requires the establishment of a fare structure.. The discussion of this item will help achieve Board Strategic Priority 6: Innovate to improve levels of service, business processes, and funding. Fare Structure - Change Cadence 2/4/208 8:47:45 AM