TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Board Policy 314 - Capital Plan and Projects Policy
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider approving minor amendments to Board Policy 314 - Capital Plan and Projects Policy.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Having clear and concise financial policies helps District staff maximize the use of existing and new revenues.
BUDGETARY/FISCAL IMPACT:
There are no direct fiscal impacts from the amendments to this Policy.
BACKGROUND/RATIONALE:
Board Policy 314 establishes the process for submission and approval of capital projects and a Capital Improvement Plan (CIP) to the General Manager and then to the Board. This Policy was originally adopted in 1992 and is reviewed every two years to ensure continued alignment with other Board policies and District procedures.
Staff recommends several minor amendments to this Policy to ensure consistency with other Board policies, to clarify and streamline authorities, and update terms and definitions to align with current practice. The recommended amendments are summarized below.
Updating the definition of a "Capital Project" to be more specifically defined.
Prior versions of the Policy broadly attributed any expense over $7,500 with a lifespan of two years or more to be a capital project. As costs of many goods have increased, this threshold also included smaller one-time purchases more appropriately managed as operating expenses.
Adjusting the Capital Programming Committee Membership
Staff proposes to update Capital Committee membership to remove specific titles but maintain representation from each executive department. This enables greater flexibility when roles and titles change while still ensuring represen...
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