Minneapolis, MN
ATTENDEES:
Claudia L. Hussein, Chair, Port Authority of Allegheny
County
Terry Cordell, Vice Chair, RTC of Southern Nevada/CAT
| Robert Babbitt |
Metropolitan Transit Authority
|
| Steven Bracy |
UBS|PaineWebber |
| Mike Corcoran |
TransportMAX |
| John Noce |
Bi-State Development Agency
|
| Robert McCully |
Dresdner Kleinwort Wasserstein
|
| Sam Kerns, Staff Advisor |
American Public Transportation
Association |
| Tony Kouneski |
American Public Transportation
Association |
| Brian Dunlap |
American Public Transportation
Association |
Welcome and Introduction
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 September
30, 2001 meeting.
TransportMax
Ms. Hussein introduced Mike Corcoran, CEO of TransportMAX,
and Tony Kouneski, Vice President-Member Services. TransportMAX is the
industry portal built by the public transportation industry for the public
transportation industry, an exclusive partnership between APTA and Booz
Allen Hamilton. TransportMAX launched into commercial operations on April
1, 2002. Mr. Corcoran and Mr. Kouneski then proceeded with a powerpoint
presentation TransportMAX works and the benefits it provides to both transportation
agencies and suppliers.
T-Flex Update - Terry Cordell
Terry Cordell briefly discussed the origin of T-Flex
(Transit Finance Learning Exchange) and its role as one of financial management
training for transit agency lower-level staff (Transit 1010). It was founded
in 1998 by Chris Poinsatte and currently has six web-based training modules.
The goal is to have 26 modules at completion. The T-Flex group meets twice
a year, with the next workshop scheduled for August 18-21, 2002 in Pittsburgh.
Legislative Update - Claudia Hussein
Ms. Hussein briefed the Committee on recent legislative
developments. APTA's Legislative Committee has been focusing its efforts
in the following areas:
Urging lawmakers for a 12% increase in new funding
Substantial increase in new starts funding
New programs for small transit operations to purchase more buses
Additional funding for R&D
Finalizing reauthorization report. This should be ready for Board
approval at the September 2002 APTA Annual Meeting.
Roundtable
There were a number of roundtable issues discussed by
the Committee members.
Lease/Leaseback Transactions
John Noce discussed Bi-State's recent on-line transaction with a lease/leaseback
that was completed in the fall of 2001. They are currently working on
doing some type of lease/leaseback transaction on the purchase of 250
buses. They are also working on a $350-400M bond transaction to take place
later this year that will provide the majority of funding for a light
rail extension. This extension will not utilize any federal funds. Bob
McCully mentioned that the first US-QTE transaction took place at BART
earlier in the year for approximately $130M.
Current Agency Budgets/Economic Downturn
Terry Cordell discussed the current plight of the RTC in Las Vegas. Farebox
revenue has been way down since the tragic events of 9/11. This has really
hurt them since farebox revenue covers 40% of their operating budget.
Although sales tax revenue is up 1-2%, this is down based on prior years
when sales tax revenue has increased on average over 6%. Mr. Noce added
that Bi-State's operating budget was OK at the moment and that most city/county
taxes were flat to slightly up. Ms. Hussein mentioned that her agency
was dealing with lots of operating expense issues that had resulted from
drastic cuts in funding from the state. They are currently looking at
simultaneous fare increases and service reductions. She also mentioned
that their labor contract was currently at Best and Final (BAFO) stage
of arbitration.
Insurance
Bob Babbitt stated that they were experiencing insurance
(bidding, liability, property, etc.) increases ranging from 3% - 40% from
prior year premiums. Other members noted that they were experiencing similar
increases.
Calendar of Event/APTA Activity Update
Sam Kerns, APTA staff advisor, reviewed the calendar
of upcoming APTA events, including the Risk Management Seminar and the
combined Commuter Rail/Rail Transit Conference, both being held in June.
Mr. Kerns then distributed pamphlets describing APTA's
charitable foundation, the American Public Transportation Foundation (APTF).
APTF was founded in 1987 to support young professionals pursuing a career
in public transportation. The mission of the Foundation is to sustain
and grow a talented, dedicated and diverse workforce within the industry.
The Foundation is funded mostly from tax-deductible contributions from
individuals within the transit community.
Mr. Kerns then reported that APTA's Executive Committee
had approved the FY03 Business Plan and Budget at yesterday's meeting.
The FY03 budget included no dues rate increase but did include approximately
3.25% increase in meeting registration fees (except for the upcoming Annual
Meeting).
Mr. Kerns concluded his briefing with news that APTA's
(PT)2 Initiative had gone over its $30M five-year fundraising goal, and
was currently at over $31M.
Next Meeting
Chair Hussein adjourned the meeting at 2:30 p.m. The
next meeting of the Committee will be in Las Vegas, NV on Sunday, September
22, 2002 at the APTA Annual Meeting/Expo.
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