appropriated and expended in Special Transit Service District No. 1 for
operation and maintenance activities.
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History of the District 1 - District 2 Allocation Methodology;
Measure VV/C1 Agreed Upon Procedure, including an Hours and
Miles Comparison for District 1/District 2;
AC Transit Audited Financial Statements (includes the D1/D2
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Report and Supplemental Schedule).
Chief Financial Officer Chris Andrichak briefly presented the status of the District's
finances and introduced the presenters. Ken Myers presented information on the
allocation methodology and the allocation of revenue, subsidies, and expenses. Brad
Schelle, an independent external auditor with Crow LLC, reviewed the Measure VV/C1
agreed-upon procedures applicable to the audit. Mr. Schelle explained that Measure
VV/C1 funds collected during the 2020-21 Fiscal Year had been appropriated and
expended in Special Transit Service District No. 1 for operation and maintenance
activities as prescribed by the agreed-upon procedures.
Chair Abelson asked a about the allocation of funds between the two special districts.
Staff explained the allocation methodology that applies to expenses, which are based
on the service hours in each District and compared to the total number of hours, and
also based on service miles in each District compared to total numbers of miles. Mr.
Myers further referred to the established and agreed-upon formula and allocation
methodology.
Chair Abelson asked about the paratransit division of expenses and whether it was
based on the fact that all customer requests were fulfilled without a denial of service.
Mr. Myers confirmed that to be true and that division of expenses for paratransit
services was split between the two special districts based on the services reported by
the paratransit contractor.
Member Chen asked a general question about the District's Budget that was addressed
by staff. Chair Abelson commented that a portion of sales taxes collected from online
commerce contributed positively to the District's revenues.
Member Tregub commented that total service hours, service miles, and hours
decreased in the past fiscal year and asked if staff plans to address the issue. Though
beyond the Committee's scope, General Manager Hursh addressed the question,
explaining that the unavailability of bus operators and change in transportation needs
have contributed to the change in service. He further clarified that staff is aggressively
recruiting bus operators and gauging the transit needs to redesign the service network.
Mr. Hursh referred the Committee to recent Board discussions about the established
methodology for prioritizing lines in service restoration. Mr. Hursh also addressed a
question about the American Rescue Plan Act (ARPA) funds.
Member Levy commented about the Committee's charge related to the expenditures in
Special District 1 and asked whether it has any input on determining the methodology
