MINUTES, REGULAR MEETING
BOARD OF DIRECTORS
GREATER HARTFORD TRANSIT DISTRICT
Hartford, Connecticut
January 4, 2007

William D. Chiodo, Chairman
Presiding............................

At 7:02 p.m., a quorum determined to be present; Mr. Chiodo called a Regular Meeting of the Board of Directors of the Greater Hartford Transit District (the "District") to order in the District's Multipurpose Room at Union Station., One Union Place, Hartford, Connecticut. The following Directors were present: Peter Bonzani and Marilyn Pet , East Hartford ; Jennifer Cassidy and Frank Lord, Hartford; James R. McCavanagh and Paul McNamara, Manchester; William G. Hall, Newington; Kenneth D. Goldberg; Rocky Hill; Ferguson R. Jansen, Jr. (arrived at 7:05 pm), Simsbury; Mark Etre, Vernon; Richard F. Messenger, West Hartford; Brendan T. Flynn, Wethersfield; and William D. Chiodo, Windsor. District staff present were ; Vicki L. Shotland, Executive Director, Kimberly A. Dunham, Director of Fiscal and Administrative Services; DJ Gonzalez, Operations Administrator, and Patricia Williams, Director of Paratransit. Also present was Bradshaw Smith, a resident of the Town of Windsor.

The Chairman acknowledged a new board member from Manchester, Paul McNamara.

The Chairman next asked if there were any members of the public who wished to be heard. There were none.

Mr. Chiodo then asked for consideration of the Minutes of the Regular Meeting of December 14, 2006. Mr. Bonzani moved adoption of those Minutes. Upon seconding by Mr. Messenger, the motion passed by a vote of 22.96 yea, 0.00 nay and 4.53 abstention (Mr. Etre and Ms. Cassidy).

The Chairman next asked that Brendan Flynn address the Board with a synopsis of the December 11, 2006 Audit Committee meeting. Mr. Flynn indicated that the audit for the fiscal year ended June 30, 2006 was a “clean” audit and that there were no findings. He further elaborated on the ongoing financial challenges associated with the operation of Union Station and the continually evolving reporting and audit requirements within the accounting industry.

Mr. Flynn then introduced Reed Risteen, Senior Partner at Blum, Shapiro and Company, who provided a high level overview of the Comprehensive Annual Financial Report as well as the State Single Audit and Federal Single Audit Reports. Mr. Risteen discussed the audit process in addition to areas of the agency's finances and reporting requirements during FY2006 that differed from preceding years. Absorption of the Internal Service Fund into the General Fund occurred, as it had been determined that the fund had isolated allowable costs attributable to grants. Indirect costs were significantly higher due to the accumulated sick time payout of a District retiree. Rental revenue in the Enterprise Fund increased by 12% during the year while parking revenues had decreased by 9%. Statistical table reporting requirements for governmental agencies had changed during this year and related data may be found in the rear section of the CAFR. Additionally, Blum Shapiro had made several recommendations in its Management Letter including monthly allocation of indirect costs as well as preparation for the upcoming GASB requirements to recognize post-retirement health benefit liability on an annual basis. The Board was then offered to address any questions or concerns related to the audit and reports.

Mr. Lord inquired if the Audit Committee had been afforded an opportunity to meet with Mr. Risteen absent of management's presence, which it had. He further commented on the portion of the audit report outlining expected minimum lease income and requested that at a future date the Board be presented a more detailed overview of this matter. Mr. Hall then asked if the Sarbanes-Oxley Act played a role in the consistently changing auditing requirements. Mr. Risteen provided information on the many factions behind the changes, in addition to expectations that the audit scope will broaden with regard to review and testing of internal controls and systems. Mr. Jansen inquired as to any pending hardware, software or staffing needs that the Board should consider regarding its accounting function. Mr. Risteen commented that additional staffing was recommended during the FY2005 Audit Committee meeting, and that issue had been addressed through the hiring of an Accounting Associate. Ms. Shotland thanked Mr. Risteen for his presentation and commented on the continual positive relationship maintained between the District and Blum Shapiro. There being no further questions or discussion related to this matter, a motion was made to accept the year end report as presented by Brendan Flynn, seconded by Mr. Lord, and accepted unanimously by a vote of 29.86 yea, 0.00 nay and 0.00 abstentions.

Kimberly Dunham, Director of Fiscal and Administrative Services, then presented the monthly financial report which, as requested, included Fiscal Year 2005 figures as a comparison resource. She indicated that the FTA had recently approved a budget revision to an existing grant that would allow for additional funds to be used for Union Station operational and capital costs. Ms. Dunham further commented that District staff will be undertaking the preparation of a ten-year operating and capital plan which will include a projected phase-out of the operating deficit in the Enterprise Fund. Vicki Shotland commented on the significant capital investment that Peter Pan/Greyhound will be making in mid-January as well as the recent negotiation of rental fees for two bus bays occupied by Connecticut Limousine and Peter Pan. Lease negotiations to include increased bus bay fees for Peter Pan shall commence mid-2007.

Ms. Dunham commented on utility costs at Union Station which are consistent with prior year to date amounts. Considering the large rate increases in natural gas and electricity, the warm weather has played a significant role in minimizing the costs incurred during this year, and a broader discussion ensued regarding this matter. Both natural gas and oil are used under an automated system which switches the fuel source when the outside temperature reaches a predetermined level. Various Board members suggested alternative fuel ideas such as bio-diesel and fuel cell as well as possibilities for the future to decrease utility costs. Ms. Shotland said that Union Station is part of the upcoming Northwest Corridor Study. Included in the consultant's scope of work is an evaluation of Union Station's structural integrity, its mechanical systems and its electrical systems.

A motion was presented by Mr. Flynn to accept the monthly financial report, seconded by Mr. Bonzani, and accepted unanimously by a vote of 29.86 yea, 0.00 nay and 0.00 abstentions.

Mr. Chiodo then asked for Program Presentations. The Board was provided with the monthly ADA/DAR report and asked if there were any questions. Since there were none, Ms. Shotland proceeded to discuss pending issues including; National Transit Database (NTD), creating a new Standard Operating Procedure (SOP) document related to the paratransit service, 5307 vehicle funding and stricter guidelines that the District will follow regarding the issuance of these funds for towns and municipalities, and reduction of towing charges on ADA paratransit vehicles.

Ms. Shotland next addressed operational issues including; the opportunity for the “fuel cell” demonstration bus to be brought to New York and appear on the Today Show in April, and the Transit Statewide Needs Assessment Study to be performed by Urbitrans. This study will evaluate and quantify transit needs in Connecticut. The result of the study will be a document for the legislature that outlines and justifies spending additional funds on transit in the State.

Ms. Shotland stated that there had not been another CRCOG Transportation Committee meeting since our last Board meeting.

There being no further business brought before the Board, Mr. Lord moved that the Meeting be adjourned. Upon seconding by Mr. Messenger, the motion passed by a vote of 29.86 yea, 0.00 nay, and 0.00 abstention. The Meeting was adjourned at 8:15 p.m.

Respectfully submitted,

_______________________
FRANK LORD
Secretary