05-2006

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

MARCH 24, 2006

     
 
The Board of Directors of the Golden Gate Bridge, Highway and Transportation District (District) met in regular session in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday, March 24, 2006, at 10:00 a.m., President Middlebrook presiding.
     
ROLL CALL
     
 
Directors Present (19): Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook

Directors Absent (0): None

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C. Chiaroni; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; Risk Management and Safety Director Bill Stafford; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala; Lieutenant Lisa Locati

Visitors Present: Jerry Grace, Oakland resident; Mel Blaustein, Psychiatric Foundation of Northern California

     
PLEDGE OF ALLEGIANCE
     
  Director Cochran led the Board of Directors in the Pledge of Allegiance to the Flag.
     
PUBLIC COMMENT
     
 
Jerry Grace expressed his concerns regarding the scheduling of Golden Gate Bridge District Board of Directors meetings, in that they are held at the same time as meetings held for other public agencies, preventing him from attending District meetings. Further, he commended General Manager Celia Kupersmith for her efforts regarding the implementation of Translink®.
     
CONSENT CALENDAR
     
 
Directors STROEH/COCHRAN moved approval of the Consent Calendar.  All items were approved by the following vote of the Board of Directors:
     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
1.

Approve the Minutes of the Regular Meeting of the Board of Directors of March 10, 2006

Carried

     
2. Denial of Claims
     
  a.

Grant Application for Leave to Present a Late Claim and Deny Claim of Kaitlin Allerton, a Minor

Carried

     
GENERAL MANAGER'S REPORT
     
3. Announcement
     
 
General Manager Celia Kupersmith reported that the Mayor of Taipei is touring San Francisco and his visit will include a stop at the Golden Gate Bridge.
     
4. Presentation of Five Year Service Award to Director Leah C. Shahum
     
 
President Middlebrook presented a Five-Year Service Award to Director Leah C. Shahum and expressed her congratulations on behalf of the Board of Directors for her service as a member of the Board of Directors.
     
5. Presentation of Five Year Service Award to District Engineer Denis Mulligan
     
 
President Middlebrook presented a Five-Year Service Award to District Engineer Denis Mulligan and expressed her congratulations on behalf of the Board of Directors.  She noted Mr. Mulligan’s extensive accomplishments, particularly in his efforts in project management and oversight, reducing the District’s deficit, and with his outstanding knowledge in the engineering field, as well as his association with colleagues and elected officials.
     
6. Presentation of Twenty Year Service Award to Arturo Meuniot, Ironworker Superintendent, Bridge Division
     
 
President Middlebrook presented a Twenty Year Service Award to Arturo Meuniot, Ironworker Superintendent, Bridge Division, and expressed her congratulations on behalf of the Board of Directors.
     
7.
Presentation of Employee of the Month Award for March 2006 to Cliff Koch, Transportation Supervisor, Bus Division
     
 
President Middlebrook presented the Employee of the Month Award for March 2006 to Cliff Koch, Transportation Supervisor, Bus Division, and expressed her congratulations on behalf of the Board of Directors.
     
ATTORNEY’S REPORT
     
8.
Attorney David Miller reported that all items contained in the Attorney’s Report were informational.  Mr. Miller also reported that a closed session would be held just prior to the conclusion of the meeting to discuss labor negotiations.
     

ENGINEER’S REPORT

     
9.
District Engineer Denis Mulligan reported that all items contained in the Engineer’s Report were informational.
     
REPORT OF THE TRANSPORTATION COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 9, 2006
     
10.
All items contained in this report are informational, as the items requiring Board action were acted upon by the Board of Directors at their meeting of March 10, 2006.
     
REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 23, 2006
     
11.
Authorize Execution of an Amendment to the Agreement with the California Highway Patrol Relative to Contract No. 99-B-5, Golden Gate Bridge Seismic Retrofit (Phase II), South Approach Structures
     
 

Directors EDDIE/BORO

Resolution No. 2006-021 authorizes execution of an amendment to the On-call Service Agreement with the California Highway Patrol, in the amount of $100,000, to extend the enforcement of the construction zone speed limit and assistance with traffic diversions for nighttime lane closures; and, authorizes a budget increase in the FY 05/06 Bridge Division Capital Budget in the amount of $100,000, as concurred with by the Finance-Auditing Committee at its meeting of March 23, 2006, to be funded by federal grant funds secured for the Seismic Retrofit Project, contingent upon approval by the Federal Highway Administration.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
12.
Authorize Execution of an Amendment to the Professional Services Agreement with PES Environmental, Inc., Relative to the Phase II Lead Risk Assessment
     
 

Directors EDDIE/KERNS

Resolution No. 2006-022 authorizes execution of an amendment to the Professional Services Agreement with PES Environmental, Inc., Novato, CA, relative to the Golden Gate Bridge Phase II Lead Risk Assessment project, in an amount not to exceed $88,000, to perform additional environmental studies related to the assessment of lead contamination in the soil under and around the Golden Gate Bridge; with the understanding that requisite funds are included in the FY 05/06 District Division Operating Budget.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 23, 2006
     
13. Reaffirm the Investment Policy
     
 

Directors STROEH/MURRAY

Resolution No. 2006-023 reaffirms the Investment Policy as it currently stands, as outlined in the attached excerpt of the Rules of the Board, RULE XI, Investment Policy.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 9, 2006
     
14. All items contained in this report are informational.
     
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 23, 2006
     
15.
Approve Implementation of a Five-Year Transit Fare Program and Amend Master Ordinance 2006
     
 

Directors STROEH/BORO

Ordinance No. 2006-02 approves implementation of a Five-Year Transit Fare Program of annual five percent fare increases applied to regional bus, complementary ADA paratransit and ferry services, effective July 1, 2006 through June 30, 2011, as outlined in the attached Ordinance; and amend Master Ordinance 2006 accordingly.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
16. Approve Actions Relative to the Property Insurance Program
     
 

Directors STROEH/KERNS

Resolution No. 2006-024 approves the following actions relative to the Property Insurance Program:
     
  a.
Renew the District Buildings and Facilities policy with ACE/Westchester, as well as the incumbent panel of carriers, providing “all risk” coverage for all land-based District facilities, except the Bridge itself, in case of fire, flood and earthquake, with a limit of liability of $20 million per flood and earthquake occurrence, with a limit of liability of $45 million per fire occurrence and a deductible of $250,000 each loss for fire, including 5% of value for flood and earthquake, at a premium of $549,536, for a one-year term, effective April 8, 2006, through April 7, 2007; with the understanding that requisite funds are available in the FY 05/06 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 06/07; and,
  b.

Renew the Boiler and Machinery policy with Hartford Steam Boiler Company, providing coverage for breakdown of equipment, including all boilers, fired storage water heaters, fired coil water heaters, electric steam generators, sandblasting equipment and all metal unfired pressure vessels used as air tanks, which objects require city and state inspection and certification, with a limit of liability of $1 million per accident and a deductible of $1,000 per accident, at a premium of $2,911, for a one-year term, effective April 8, 2006, through April 7, 2007; with the understanding that requisite funds are available in the FY 05/06 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 06/07.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
17.
Authorize the Establishment of a Restricted Bridge Self-Insurance Loss Reserve to be Used in the Event of Catastrophic Damage to the Golden Gate Bridge
     
 

Directors STROEH/MOYLAN

Resolution No. 2006-025 authorizes the establishment of a Restricted Bridge Self-Insurance Loss Reserve to be used in the event of catastrophic damage to the Golden Gate Bridge or the sustained loss of toll revenue, and designates initial funding in the amount of $1,300,000 for FY 06/07 from the FY 06/07 Bridge Division Operating Budget and a pro rated amount of $300,000 for the remainder of FY 05/06 from the FY 05/06 Bridge Division Operating Budget; with the understanding that:
     
  a.
It is the intent of the Board of Directors (Board) that on an annual basis, a decision will be made based on consideration of financial market conditions, insurance availability and cost, either to purchase insurance to cover bridge physical damage risks or to allocate additional funds into the Restricted Bridge Self-Insurance Loss Reserve established by this Resolution, recognizing that the objective of the Board of Directors is to achieve a fully-funded contingency reserve over time at a minimum level of $25 million in 2006 dollars for both physical property damage and loss of use;
  b.
It is conservatively estimated that it could take 23 years to fully fund this reserve; and,
  c.

It is the intent of the Board that the Restricted Bridge Self-Insurance Loss Reserve would be available to answer major claims for physical damage to the Bridge in excess of $10,000,000, and/or extended loss of revenue in excess of 20 days, upon the approval of the Board of Directors.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
18.
Approve the Addition of the Fastrak System Replacement Project to the FY 05/06 Bridge Division Capital Budget
     
 

Directors STROEH/KERNS
Resolution No. 2006-026
approves the addition of the FasTrak System Replacement Project to the FY 05/06 Bridge Division Capital Budget in the amount of $4.8 million; and, authorizes the issuance of a Request for Proposals.

Adopted

     
 
AYES (19):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):      None
ABSENT (0): None
     
SPECIAL ORDER OF BUSINESS
     
19.
Authorize Issuance of a Single Request for Proposals to Undertake Environmental Studies and Preliminary Design Work Related to Development of a Physical Suicide Deterrent System on the Golden Gate Bridge
     
 
A meeting of the Bridge Barrier Projects Advisory Committee (Advisory Committee) was held on Friday, March 24, 2006, at 9:30 a.m., just before the meeting of the Board of Directors, to discuss matters related to a Physical Suicide Deterrent System on the Golden Gate Bridge. It was the consensus of the Advisory Committee to recommend to the Board of Directors a technical amendment to Resolution No. 2006-020, Approve Proceeding with Phase One of Environmental Studies and Preliminary Design Work Related to Development of A Physical Suicide Deterrent System on the Golden Gate Bridge. Chair Pahre presented the recommendation to the full Board.
     
  Public Comment
     
 
Dr. Mel Blaustein requested clarification on whether the District has received the twenty percent local matching funds to proceed with the project.  In response, Ms. Kupersmith stated that, although the money associated with the project has been approved, the District has not yet received some of the monies.  She further stated that the District will not award a contract for this project, until the all of the outside funding commitments from non-District sources have been received.
     
 

Directors PAHRE/MURRAY

Resolution No. 2006-027 authorizes issuance of a single Request for Proposals to undertake environmental studies and preliminary design work related to the development of a Physical Suicide Deterrent System on the Golden Gate Bridge whose scope of work will include both phases of the Studies as outlined in Resolution No. 2006-020, with the understanding that:
  a.
The contract will not be awarded and work on Phase One will not begin until at least $125,000 in local funding commitments has been received by the Golden Gate Bridge, Highway and Transportation District (District), and
  b.
The work on Phase Two of the Project will not proceed until: 1) the remaining local match funds, bringing the total amount received to $400,000, has been received from non-District sources, and, 2) approval to move forward with Phase Two is granted by action of the Board of Directors;
 

and amends Resolution No. 2006-020 accordingly.

Adopted

     
 
AYES (17):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; First Vice President Moylan
NOES (2):      Director Martini; President Middlebrook
ABSENT (0): None
     
20. Approve Cancellation of the April 14, 2006 Meeting of the Board of Directors
     
 
First Vice President Moylan expressed his concerns regarding the cancellation of Board of Directors meetings, emphasizing the need for the Board of Directors to maintain the tradition of twice-monthly meetings in case any issues arise that need Board approval.
     
 

Directors MARTINI/BROWN

Resolution No. 2006-028 approves cancellation of the April 14, 2006 meeting of the Board of Directors due to the absence of any action items scheduled for presentation to the Board of Directors; with the understanding that a single Board of Directors meeting in the month of April 2006 is an exception to Rule II of the Rules of the Board, Subsection A., Meetings, which states, “The Board shall convene in regular meeting at 10:00 a.m., on the second and fourth Fridays of each month in the District’s San Francisco headquarters…”

Adopted

     
 
AYES (18):     Directors Ammiano, Brown, Cochran, Dufty, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval, Shahum and Stroeh; Second Vice President Boro; President Middlebrook
NOES (1):      First Vice President Moylan
ABSENT (0): None
     
CLOSED SESSION
     
21.

Attorney David Miller, at the request of President Middlebrook, stated that the Board of Directors would convene in closed session to discuss labor negotiations.

After closed session, President Middlebrook called the meeting to order in open session with a quorum present. Attorney Miller reported that the Board of Directors met in closed session, as permitted by the Brown Act, to hear a report from the Advisory Committee for Labor Relations at its meeting on Thursday, March 23, 2006.  The Board of Directors authorized submittal of District proposals to the union coalition and to each union whose Memorandum of Understanding is scheduled to expire on June 30, 2006.

     
ADJOURNMENT
     
22.
All business having been concluded, the meeting was adjourned at 11:15 a.m., in the memory of Jack Aguilar.
     

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District

Attachments:

1. Excerpt of the Rules of the Board, RULE XI, Investment Policy

2. Ordinance No. 2006-02, An Ordinance to Amend Master Ordinance 2006, as Amended, to Adopt the Five-Year Transit Fare Program For July 1, 2006 Through June 30, 2011

3. Resolution No. 2006-025, Authorize the Establishment of a Restricted Golden Gate Bridge Self-Insurance Loss Reserve

4. Resolution No. 2006-020, Approve Proceeding with Phase One of Environmental Studies and Preliminary Design Work Related to Development of A Physical Suicide Deterrent System on the Golden Gate Bridge