Philadelphia, Pennsylvania
ATTENDEES:
Claudia L. Hussein, Chair, Port Authority of Allegheny
County
| Robert Babbitt |
Metropolitan Transit Authority
|
| Sol Barth |
Sol Barth Pension Adviser |
| Peter Benjamin |
Washington Metropolitan
Area Transit Authority |
| George Bischof |
Macquarie Corporate Finance
(USA) Inc. |
| Keith Curry |
Public Financial Management |
| Ray Ellis |
AECOM Consulting Transportation
Group |
| Michael Goode |
TELFORD Consulting |
| Greg Hurst |
CIBC World Markets |
| Marta Jewell |
AECOM Consulting Transportation
Group |
| Loretta Kirk |
Greater Cleveland Regional
Transit Authority |
| Sharon Leary |
Dallas Area Rapid Transit |
| Gordon Linton |
Siebert Brandford Shank
& Co., LLC |
| Rich Lobron |
Lobron Consulting, LTD |
| Charles Matthews |
Public Financial Management |
| Robert McCulley |
Dresdner Kleinwort Wassertein |
| Alan Pegg |
RTA - New Orleans |
| Dean Richardson |
Eckert, Seamans, Cherin
& Mellott, LLC |
| Jonathan Savar |
Macquarie Corporate Finance
(USA) Inc. |
| Scott Schroeder |
San Francisco Area Rapid
Transit District |
| Premal Shah |
CIBC World Markets |
| Eugene Spinelli |
UBS|PaineWebber |
| Alice Wiggins |
American Public Transportation
Association |
Sam Kerns, Staff Advisor American Public Transportation
Association
Chair Claudia Hussein called the meeting to order. Ms.
Hussein welcomed the committee members in attendance and self-introductions
were made.
Approval of Minutes
A motion was made, seconded, and unanimously adopted
to approve the minutes of the Financial Management Committee's May 6,
2001 meeting.
Recognition for Chris Poinsatte
A plaque to Chris Poinsatte in recognition of his services
as Chair of the Financial Management Committee was passed around for the
Committee members to view. Terry Cordell is coordinating a collection
of funds to purchase an additional gift for Chris, probably a nice bottle
of wine.
T-Flex Update
Terry Cordell was unable to attend so an update on T-Flex
was not given.
Legislative Update - Peter Benjamin
Tax-free transit benefits will increase from the current
$65 per month limit to $100 per month limit on January 1, 2002. Mr. Benjamin
updated the Committee on the work of the Reauthorization Task Force and
indicated that current issues were being honed. Discussion ensued regarding
other legislative ideas including ways to use the additional $40B in funds
appropriated by Congress since 9/11 and accelerating the purchase cycle
related to buses, including the ability to buy off the GSA schedule.
GASB 34 Implementation - Michael Goode
Michael Goode of TELFORD Consulting gave an overview
of asset management and GASB 34 and the importance of each as it relates
to the transit industry. Asset management is a still-emerging concept
that provides a solid foundation and system to monitor a transportation
system and optimize the preservation, upgrading and timely replacement
of these assets. Over the last several years AASHTO, FHWA, and APWA have
actively promoted asset management.
Mr. Goode reviewed the requirements of GASB 34 and the
related compliance issues. In short, GASB 34 requires transit agencies
to calculate the original cost of infrastructure constructed or improved
during the last 20 years. Publications from the US Department of Transportation
were distributed to Committee members (Asset Management Primer and Primer:
GASB 34).
Current Financing Issues
There were two presentation made related to various financing
options. Dean Richardson of Eckert, Seamans, Cherin & Mellott distributed
a handout on arbitrage issues related to advance refundings. Basic rules
and limits on the number of advance refundings were outlined.
Charles Matthews of Public Financial Management discussed
the various ways to use swaps and hedging products. A handout detailing
these issues was distributed to the Committee members and discussed at
greater length.
Lease/Leaseback Update
George Bischof of Macquarie Corporate Finance next presented
an overview of the leaseback market available for transit properties.
This included an explanation of the benefits associated with such a transaction
and how a typical transaction might be structured. Examples of recent,
as well as upcoming transactions were highlighted.
Gordon Linton of Siebert Brandford Shank & Co. discussed
the close relationship between his firm and CIBC World Markets. He then
introduced Greg Hurst and Premal Shah of CIBC World Markets. Mr. Hurst
and Mr. Shah proceeded to review CIBC's previous financing deals and their
experience in QTE (qualified technological equipment) lease financing.
National Transit Database Project (NTD)
Ray Ellis and Marta Jewell of AECOM Consulting updated
the Committee on the status of the National Transit Database (NTD). A
handout was distributed and items that were discussed included the elimination
for a separate complete report by sellers of purchased transportation
greater than 100 vehicles, the increase in the reporting thresholds related
to safety and security and that Phase II of NTD is about to get underway.
Further information, e-mail nationaltransit@aecomconsult.com.
Calendar of Event/APTA Activity Update
Sam Kerns, APTA staff advisor, briefed the committee
on APTA's E-Commerce initiative and mentioned that a session related to
this initiative was scheduled for tomorrow from 3:30pm to 5:00pm. He also
reminded the Committee members of upcoming APTA workshops and conferences
including TransITech in February and the Bus and Paratransit Conference
in May.
Mr.` Kerns then introduced Alice Wiggins, Chair of APTA's
Marketing Committee. Ms. Wiggins briefed the FMC members on the current
progress of APTA's Public Transportation Partnership for Tomorrow Initiative,
otherwise known as (PT)2. Her goal is to keep open the lines of communication
between the Marketing Committee and all other APTA committees in an effort
to better understand and coordinate the various efforts going on within
APTA. Current FMC member Peter Benjamin is on the (PT)2 Committee.
Roundtable
Given the number of presentations made, time was not
available for any roundtable discussion.
Next Meeting
Chair Hussein adjourned the meeting at 3:00 p.m. The
next meeting of the Committee will be in Minneapolis, MN on Sunday, May
5, 2002 at the APTA Bus and Paratransit Conference.
Presentation Materials/Handouts:
Please e-mail Sam Kerns at skerns@apta.com
for copies of any of the presentations given.
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