Strategic Plan For Achieving Long-Term Financial Stability

Agenda Item No. 5

To:   Finance-Auditing Committee/Committee of the Whole Meeting of July 25, 2002
 
From:   Joseph M. Wire, Auditor-Controller Celia G. Kupersmith, General Manager
 
Subject:   STATUS REPORT ON IMPLEMENTATION OF THE STRATEGIC PLAN FOR ACHIEVING LONG-TERM FINANCIAL STABILITY

Recommendation

This report is provided for informational purposes only, no action is required at this time.

Background

The Golden Gate Bridge, Highway, and Transportation District faces a serious financial crisis in the next few years. At the June 28 meeting of the Board of Directors, a Strategic Plan for Achieving Long-Term Financial Stability was adopted. This report provides a general timeline for approaching implementation of the various components of the Plan. Many of the activities will carry over into a subsequent round of activity. A copy of the Strategic Plan for Achieving Long-Term Financial Stability is attached for your information.

Round I: January 2002 - June 2002

  • Consideration and adoption of a vehicle toll increase on the Golden Gate Bridge. (COMPLETED)

    Round II: July 2002 - January 2003

  • Consideration of sidewalk access fee - first report to Board in late August, 2002
  • Development of proposal for raising the Golden Gate Ferry fares significant to develop better parity with private ferry operators in the Bay Area. Initial report to Board expected in September 2002 with implementation, if approved, in January 2003.
  • Implement initial modest transit service reductions in September 2002. Develop proposal for Board consideration of service reductions for December 2002 and March 2003. Please note that each round, as described in this report, will include further transit service reductions to be implemented in an incremental program of down-sizing actions.
  • Begin discussion with FHWA and BAAQD regarding funding of feasibility study for congestion pricing on Bay Area Bridges, including the Golden Gate Bridge.
  • Implement parking meters in west parking lots at Golden Gate Bridge for non-employee use.
  • Begin examination of options and opportunities for creation of non-profit organization.
  • Investigate possible Golden Gate Bridge credit card and vehicle license plate programs.
  • Develop recommended annual toll rate review process.
  • Develop proposals for labor cost savings, including some form of "early-outs" program. Include investigation of how widely it would be offered within the District.
  • Implement initial version of employee suggestion program.
  • Investigate potential for Secret Service assistance in Bridge security activities.

Round III: February 2003 - April 2003

  • Implement significant service reductions in bus and ferry services in March. Develop proposal for additional service reductions for implementation in June and September 2003.
  • Finalize proposals for Union Coalition negotiations which are expected to begin in March/April 2003.
  • Bring forward plan for multi-year transit fare increases to begin in July 2003. Include examination of implementing parking fees at Larkspur Ferry Terminal.
  • Implement expanded Grants program with additional staff resources.
  • Open discussion with CalTrans regarding on-going funding of Bridge capital maintenance activities.
  • Pursue inclusion of District transit funding needs in any sales tax initiative begin placed on the November 2003 or 2004 ballot.
  • Begin serious discussion regarding the potential implementation of expanded concessionaire activities at and on the Bridge.
  • Pursue re-negotiation of agreements with Marin and Sonoma Counties regarding the proportion of Transit Development Act funds that are granted to the DistrictÕs transit services versus to local area services.
  • Pursue local community subsidy of transit services.
  • Review potential for savings through self-insurance.

Round IV: May 2003 - December 2003

  • Undertake negotiations with Union coalition, April 2003 - June 2003.
  • Implement June and September service reductions. Develop and implement December service reductions. Conclude reductions phase and begin analysis of restructuring of remaining service to maximize effectiveness and customer acceptance.
  • Pursue opportunities for management control of Vista Point, including concessions.
  • Finalize discussions with CalTrans regarding charging for FasTrak transponders and develop recommendation for Board consideration.
  • Develop final recommendation regarding provision of tours of the Bridge.

Please note that this timeline is presented as a general Guide for pursuit of various aspects of the Strategic Plan but that the timeline may be amended as opportunities present themselves. The Finance Committee will be kept apprised of progress on implementation of the Plan on a quarterly basis.

Fiscal Impact

There is no fiscal impact associated with this information report.

Attachment