February 12, 2004

(For Board: February 27, 2004)

REPORT OF THE TRANSPORTATION COMMITTEE

Honorable Board of Directors

Golden Gate Bridge, Highway

and Transportation District

Honorable Members:

A meeting of the Transportation Committee was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, February 12, 2004, at 9:00 a.m., Chair Brown presiding.

Committee Members Present (5): Chair Brown; Directors Eddie, Harrison and Stroeh; President Smith (Ex Officio).

Chair Brown appointed Directors Stroeh and Eddie Committee Members Pro Tem for this meeting only.

Committee Members Absent (5): Vice Chair Shahum; Directors Kerns, Martini, Middlebrook and Pahre

Other Directors Present (2): Directors Boro and Cochran

Staff Present: General Manager Celia G. Kupersmith; Acting District Engineer Ewa Z. Bauer; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney Madeline Chun; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C. Chiaroni; Deputy General Manager/Ferry Division James P. Swindler; Planning Director Alan Zahradnik; Public Affairs Director Mary C. Currie; Principal Planner Ron Downing; Executive Assistant to the General Manager Amorette Ko; Office Specialist Patsy Whala

Visitors Present: Anthony R. Withington, President, Amalgamated Transit Union Local No. 1575

1. Administer Oath of Office to Gerald D. Cochran

Secretary of the District Janet S. Tarantino administered the Oath of Office to Gerald D. Cochran, appointed to the Board of Directors of the Golden Gate Bridge, Highway and Transportation District by the Board of Supervisors of the County Del Norte.

Director Cochran addressed the Board, thanking them for their warm wishes and hearty welcome. He expressed his enthusiasm, as well as his family’s enthusiasm, for his appointment to the Bridge District and his satisfaction in becoming a member of such a distinguished Board of Directors.

2. Report of the District Advisory Committees

a. Advisory Committee on Accessibility (ACA)

The agenda for the January 15, 2004, meeting and the minutes of the September 18 and October 16, 2003, meetings of the Advisory Committee on Accessibility were furnished to the Transportation Committee. Copies are available in the Office of the Secretary of the District.

b. Bus Passengers Advisory Committee

The agenda for the January 21, 2004, meeting of the Bus Passengers Advisory Committee was furnished to the Transportation Committee. Copies are available in the Office of the Secretary of the District.

c. Ferry Passengers Advisory Committee

The agenda for the February 4, 2004, meeting and the minutes of the January 7, 2004, meeting of the Ferry Passengers Advisory Committee were furnished to the Transportation Committee. Copies are available in the Office of the Secretary of the District.

3. Authorize Award of Contract No. 2004-FT-6, Concessionaire to Provide Food and Beverage Service on District Ferry Vessels, to S&P Concessions

In a memorandum to Committee, Deputy General Manager/Ferry James P. Swindler and General Manager Celia Kupersmith provided a report regarding the staff’s recommendation for award of Contract No. 2004-FT-6, Concessionaire to Provide Food and Beverage Service on District Ferry Vessels, to S & P Concessions. The report stated that in December 2003, a Request for Proposals (RFP) was issued for provision of food and beverage services onboard the District’s vessels. The RFP was structured to provide a three-year contract, with two option years exercisable at the discretion of the District. The report also stated that for the past several years, the concession contract has required an annual base rent of $180,000, subject to adjustments based on actual ridership, and that the average per year revenue to the District after these adjustments has been approximately $160,000 for the past five years.

During the proposal period, S&P Concessions advised that as a result of the continuing economic downturn and potential further reduction in revenues because of the use of two high-speed vessels, an annual base rent of $180,000 is not realistic. As a result, the RFP was amended to allow proposers to bid a lesser amount. S &P was the sole proposer and proposed an annual base rent of $104,000 in Year One of the contract, with a gradual increase each successive year. The report further stated a moderate increase in ridership could increase concession revenues, therefore, staff negotiated with S&P Concessions to award a two-year contract, with options for a two-year extension and an additional one-year extension to give the District greater flexibility and to agree that there will be no reduction in the base rent, as long as the ridership does not fall below 30% of the previous year’s ridership for that month. Although the contract shows a significant reduction from previous years, staff is confident the 30% reduction clause will ensure there is no further reduction to the base rent. The report is available in the office of the Secretary of the District. Staff recommends award of Contract No. 2004-FT-6, to S&P Concessions, for rental amounts as outlined in the staff report.

At the meeting, Celia Kupersmith summarized staff’s recommendation, noting that the total revenue generated from concessions is less than previous years due to the reduction in the number of passengers and is reflective of the recent downsizing of the ferry service.

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/EDDIE to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Transportation Committee recommends that the Board of Directors authorize award of Contract No. 2004-FT-6, Concessionaire to Provide Food and Beverage Service on District Ferry Vessels, to S &P Concessions, San Francisco, CA, effective March 1, 2004, for the following annual base rental amount of $104,000 for Year One and $109,200 for Year Two; with three option years, exercisable by the General Manager, in the amount of $114,660 for Year Three, $120,393 for Year Four and $126,413 for Year Five.

Action by the Board : Resolution

NON-CONSENT CALENDAR

AYES (5): Directors Brown, Eddie and Stroeh; Second Vice President Harrison; President Smith (Ex Officio)

NOES (0):None

4. Public Comment

There was no public comment.

5. Adjournment

All business having been concluded, the meeting was adjourned at 9:10 a.m.

Respectfully submitted,

 

 

Harold C. Brown, Jr., Chair

Transportation Committee