MINUTES
BOARD OF DIRECTORS
ARIZONA TRANSIT ASSOCIATION
Monday, October 10, 2005
Parsons Brinckerhoff
Phoenix, AZ 10:00 a.m.
I. CALL TO ORDER
President Rick Simonetta called the meeting to order at 10:07 a.m.
II. ATTENDANCE
Rick Simonetta
Paul Miller
Mike Sabatini
Nate Peterson
Dave Boggs
Larry Miller
Roger Milroy
Jerry Fay
Steve Brown
Alan Wulkan
Mack Luckie
Ken Driggs
John Anderson
Stuart Goodman- Goodman Schwartz Public Affairs
Mike Ladino, Attorney – Valley Metro Rail
Karen Frey – Ashton & Tiffany
III. LEGISLATIVE UPDATE
Stuart Goodman stated the Friends of Transit lawsuit was dismissed last week but there were legal defense expenses incurred.
Stuart Goodman met with Senators Burns and Biggs. He briefed the senators on how previous LTAFII distributions were used. Senator Biggs was very familiar with LTAFII but Senator Burns was not
Last week Stuart Goodman and the AzTA Executive Committee met with Gail Howard of the Governor’s Staff. Stuart Goodman provided the same information on previous LTAFII distributions to Gail Howard. Gail made it clear during the meeting that she is interested in stopping the HURF sweeps. HURF funding should focus on streets not DPS.
Stuart Goodman and Rick Simonetta would like AzTA to go on record to support stopping the diversion of HURF funding. This should be brought up at our legislative conference in December.
Motion: Larry Miller moved AzTA tell the “world” that our Board of Directors is against the diversion of HURF funding.
Second: Mack Luckie
Action: Approved Unanimously
Action: Stuart Goodman will draft this letter.
Stuart Goodman stated the governor has requested AzTA’s input on the vacant ADOT board member position. The governor would like a female from the West Valley. This is an opportunity for AzTA to get someone on the ADOT Board who would be more friendly toward all facets of Transportation including Transit.
IV. ACTION ITEMS
A. Meeting Minutes
Motion: David Boggs moved approval of the September 12, 2005 Board meeting minutes.
Second: Paul Miller
Action: Approved Unanimously
B. Financial Report a/o September 30, 2005
The reconciled financial report as of September 30, 2005, shows $76,000 in revenue and $41,000 in expenses. We have received 25% of the golf revenue to date.
Motion: Larry Miller moved approval of the financial report.
Second: Paul Miller
Action: Approved Unanimously
C. Investment Income Update
John Anderson stated we have $120,000 in our reserves. There will be a presentation by Nate Peterson and the Wells Fargo investment group at the November board meeting.
Motion: Larry Miller moved AzTA invest $50,000 for not more than six months.
Second: David Boggs
Action: Approved Unanimously
D. Liability/Insurance discussion/action
Rick Simonetta indicated we had Jack LaSota at the last board meeting for a discussion regarding insurance to protect members of the board in the case of lawsuits. Most people in public agencies are covered by their employers. In the private sector, corporations would provide coverage.
Mike Ladino, Attorney, from Valley Metro Rail indicated to Rick Simonetta that Rick’s actions as a member of the AzTA Board would most likely not be covered by Valley Metro Rail. His observations indicated even if our By-Laws have indemnities, we would still not be protected from lawsuits.
Karen Frey of Ashton & Tiffany was invited to input to the Board regarding risk of lawsuits. She stated the defense cost of a lawsuit is one of the largest exposures. One lawsuit had $650,000 in defense costs where no claim was paid out. There are some claims going against non-profit organizations.
Motion: Larry Miller moved AzTA get a quote from Karen Frey for Officers & Directors Liability Insurance coverage for the board members in the $1 - $10 million dollar range. He also moved AzTA engage Karen Frey as the Risk Management Consultant for AzTA.
Second: David Boggs
Action: Approved Unanimously
V. UPDATES AND OTHER BUSINESS
A. Golf Tournament Update
Roger Milroy indicated the golf tournament has sold out and there is a waiting list of 11 at this time. Our profit this year will be about $7200 less than previous years.
There was some discussion regarding how to generate revenue with bigger/better prizes. Title sponsors and airline tickets as prizes were discussed.
B. Legislative Conference Update
Alan Wulkan distributed a draft agenda for the December 15th Legislative Conference. A teleconference call for members of the committee will be scheduled within the next week.
C. Strategic Planning Update
Larry Miller requested those on the Strategic Planning Committee who had not sent in their homework do so immediately. The next meeting for this committee is an all day meeting Tuesday, November 15.
D. APTA Grant Update
John Anderson reported we have not heard anything on this grant. September 30 was the notification date originally advertised.
E. Annual Conference Update
Carlos de Leon, Committee Chair, was not in attendance.
F. 2006 Board Retreat Update
Jeff Meilbeck, Committee Chair, was not in attendance. John Anderson indicated scoping out a couple of choices in Flagstaff. Discussion indicated the board would like to stay in Little America or some place comparable.
Action Required: John Anderson will call Jeff Meilbeck and pursue a first class hotel with amenities in Flagstaff for the 2006 Board Retreat.
G. Rural Working Group Committee Update
Paul Miller is attempting to get information from the committee members and collate it himself. He feels this should actually be an ADOT function.
H. Education and Training Committee Update
John Anderson informed the board that the Education and Training Committee has not met. Nick Promponas has volunteered to chair this committee. He has a strong background in this. He will be calling Paul Miller and Larry Miller for input. The Board welcomed Nick’s offer to Chair this committee.
I. New Website Update
Training is scheduled for John Anderson and Becky Rutledge re: Website Administration.
J. Any Other Business
John Anderson’s knee surgery is scheduled for November 3, 2005, so he will most likely not be in attendance at the golf tournament or the next board meeting.
VI. NEXT MEETING
Monday, November 14, 2005 at 10:00 a.m. at PBQD.
VII. ADJOURNMENT
President Rick Simonetta adjourned the meeting at 11:34 a.m.
Oct 05 min.doc