09-2006

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 9, 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, June 9, 2006, at 10:00 a.m., President Middlebrook presiding.

ROLL CALL

	Directors Present (14): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook Directors Absent (4): Directors Eddie, Murray, Pahre and Sandoval [Note: On this date, there was one vacancy on the Board of Directors.] 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 Patrick Miyaki; Attorney Jerry Schaefer; Attorney Allison Woodall; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Division Susan C Chiaroni; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala Visitors Present: None

PLEDGE OF ALLEGIANCE

	Director Kerns led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

	There was no public comment.

CONSENT CALENDAR

	Directors BORO/STROEH moved approval of the Consent Calendar. All items were approved by the following vote of the Board of Directors:

	AYES (13): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook NOES (0): None ABSENT (5): Directors Eddie, Murray, Pahre, Reilly and Sandoval

1.	Approve the Minutes of the Regular Meeting of the Board of Directors of May 26, 2006 Carried

2.	Denial of Claims

	There are no claims to be acted upon at this meeting.

3.	Ratify Actions by the Auditor-Controller Resolution No. 2006-047 (Finance-Auditing Committee, May 25, 2006) ratifies actions taken by the Auditor-Controller, as follows:

	a.	Ratify commitments and/or expenditures for the period April 1, 2006, through April 30, 2006, totaling $54,329.14;

	b.	Ratify investments made by the Auditor-Controller during the period April 18, 2006, through May 15, 2006, as follows:

SECURITY	PURCHASE DATE	MATURITY DATE	ORIGINAL COST	PERCENT YIELD
Barclays Bank CD	04/20/06	06/29/06	4,875,000.00	4.98
Bears Stearns Co., Inc., Commercial Paper	04/24/06	05/17/06	7,900,342.24	4.87
Societe Generale North American, Commercial Paper	04/26/06	05/08/06	3,394,560.00	4.80
UBS Finance De Inc. Commercial Paper	04/28/06	06/06/06	6,499,885.27	4.96
Barclays Bank CD	05/02/06	06/30/06	7,000,000.00	5.005
Citigroup Funding, Inc., Commercial Paper	05/03/06	06/02/06	5,621,620.29	4.97
Canadian Imp. Bank CD	05/05/06	06/05/06	8,000,000.00	5.01
Credit Suisse CD	05/08/06	06/08/06	11,100,000.00	5.03
Merrill Lynch & Co., Commercial Paper	05/08/06	06/09/06	7,569,000.00	4.99


	c.	Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between May 16, 2006, and June 12, 2006, as well as the investment of all other funds not required to cover expenditures that may become available.

	d.	Accept the Investment Report for April 2006 prepared by Public Financial Management. Adopted

GENERAL MANAGER'S REPORT

4.	Announcements

	a.	Ms. Kupersmith stated that District staff will be participating in a 4th of July Ferry Ride and extended an invitation to the Directors.

	b.	Ms. Kupersmith recognized Golden Gate Bridge Painter Cassandra Lynn Wood, currently the only woman painter on the Bridge, who was featured in an article, entitled, Working on a Giant Jungle Gym, that appeared in Wee Ones Magazine, a children and parenting magazine. President Middlebrook expressed her congratulations on behalf of the Board of Directors.

5.	Presentation of Employee of the Month Award for June 2006 to Dru Fallon O’Neill, Dispatcher, Bus Division

	President Middlebrook presented the Employee of the Month Award for June 2006 to Dru Fallon O’Neill, Dispatcher, Bus Division, and expressed her congratulations on behalf of the Board of Directors.

ATTORNEY’S REPORT

6.	Attorney Patrick Miyaki reported that all items contained in the Attorney’s Report were informational. Mr. Miyaki also reported that a closed session would be held just prior to the conclusion of the meeting to discuss labor negotiations.

ENGINEER’S REPORT

7.	No written report was presented by District Engineer Denis Mulligan. A written report is presented to the Board of Directors by the District Engineer at the second Board meeting of the month. At the meeting, Denis Mulligan reported that a milestone has been reached in regard to the Golden Gate Bridge Seismic Retrofit Phase II, in that the contractor has begun dismantling the large crane located at the south end of the Golden Gate Bridge, on the bluff above Fort Point.

REPORT OF THE SPECIAL BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MAY 25, 2006

8.	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 May 26, 2006.

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MAY 25, 2006

9.	All Non-Consent Calendar 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 May 26, 2006.

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 8, 2006

10.	Authorize Amendment to the Pass-Through Agreement with the Metropolitan Transportation Commission for Federal Transit Administration Funds for the TransLink® Project

	Directors STROEH/BORO Resolution No. 2006-048 authorizes the General Manager to execute an amendment to the Pass-through Agreement with the Metropolitan Transportation Commission for Federal Transit Administration funds for the TransLink® Project. Adopted

	AYES (14): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook NOES (0): None ABSENT (4): Directors Eddie, Murray, Pahre and Sandoval

11.	Approve Renewal of the Liability Insurance Program

	Directors STROEH/KERNS Resolution No. 2006-049 approves the Liability Insurance Program, as follows:
	a.	Renew the Excess General and Automobile Liability Insurance Program, with American International Specialty Lines Insurance Company, Lexington and Arch, for a one-year term, with a liability limit of $75 million each occurrence/annual aggregate in excess of a self-insured retention of $5 million each occurrence, for a total annual premium of $1,294,370, effective July 1, 2006;
	b.	Renew the Excess Workers’ Compensation and Employers’ Liability Insurance Program, with American International Group, for a one-year term, in excess of a self-insured retention of $1 million each accident with a liability limit of $10 million annual aggregate, for an annual premium of $269,368, effective July 1, 2006;
	c.	Renew the General Liability Insurance Program for the remaining portions of the Northwestern Pacific Railroad Right-of-Way under District control (several easements south of the Larkspur Ferry Terminal (LFT), an overflow parking lot north of the LFT, a plot north of the Cal Park Hill Tunnel and a 200-foot section running through the San Rafael Transit Center) with Steadfast Insurance Company, for a one-year term, with a liability limit of $1 million each occurrence/annual aggregate and a deductible of $10,000 per occurrence, for an annual premium of $15,600, effective July 1, 2006;
	d.	Renew the Public Officials’ Liability Insurance Program, with National Union Fire Insurance Company, for a one-year term, with a liability of $5 million each occurrence/annual aggregate and a self-insured retention of $100,000 each claim, for an annual premium of $73,724, excluding terrorism insurance, effective July 1, 2006; and,
	e.	Renew the Public Employees’ Faithful Performance Bond and Comprehensive Dishonesty, Destruction and Disappearance Bond, with Fidelity and Deposit Company of Maryland, for a one-year term, with a liability limit of $1 million for employee dishonesty and computer fraud, subject to a $25,000 deductible and $5,000 deductible respectively, and a liability limit of $500,000 for loss of money and securities at the Golden Gate Bridge Toll Plaza, subject to a $5,000 deductible and $15,000 limit at all other locations with a deductible of $5,000, for an annual premium of $13,414, effective July 1, 2006;
	with the understanding that requisite funds are available in the FY 06/07 Operating Budgets for the Bridge, Bus, Ferry and District divisions. Adopted

	AYES (14): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook NOES (0): None ABSENT (4): Directors Eddie, Murray, Pahre and Sandoval

12.	Approve Renewal of the Health and Benefit Insurance Plans

	Directors STROEH/BORO Resolution No. 2006-050 approves the renewal of the Health and Benefit Plans, for a one-year term, effective July 1, 2006, through June 30, 2007, as follows:
	a.	Group Life, Accidental Death & Dismemberment and Dependent Life Plan with Principal Mutual, in the amount of $124,000;
	b.	Medical Stop-Loss Coverage with Blue Shield of California, with a deductible of $150,000, and a special deductible of $250,000 for one specified beneficiary, in the amount of $349,000;
	c.	Kaiser Foundation Health Plan, in the amount of $3,282,000;
	d.	Blue Shield of California PPO Plan, on a self-funded basis, in the estimated amount of $9,217,000;
	e.	Blue Shield of California HMO Plan, in the estimated amount of $954,000;
	f.	Caremark Prescription Drug Plan, on a self-funded basis, in the estimated amount of $3,711,000;
	g.	U.S. Behavioral Health Services, in the amount of $59,000;
	h.	Vision Service Plan of California, on a self-funded basis, in the amount of $282,000; and,
	i.	Delta Dental Plan of California, on a self-funded basis, in the amount of $2,148,000;
	with the understanding that requisite funds in the amount of $19,935,000 are available in the FY 06/07 Operating Budget. Adopted

	AYES (14): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook NOES (0): None ABSENT (4): Directors Eddie, Murray, Pahre and Sandoval

13.	Adopt the FY 06/07 Operating and Capital Budgets

	Directors STROEH/COCHRAN Resolution No. 2006-051 adopts the FY 06/07 Operating and Capital Budgets, and approves the following related actions:
	a.	District workplans, goals and objectives, as contained in the Budget document;
	b.	A 2% negotiated salary increase for employees represented by the Amalgamated Transit Union, Local No. 1575, effective March 1, 2006;
	c.	Approve changes to the Reserve Structure; and,
	d.	Approve changes to the Table of Organization. Adopted

	AYES (14): Directors Ammiano, Brown, Cochran, Dufty, Hernández, Kerns, Martini, McGoldrick, Newhouse Segal, Reilly and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook NOES (0): None ABSENT (4): Directors Eddie, Murray, Pahre and Sandoval

CLOSED SESSION

14.	Attorney’s Report

	Attorney Patrick Miyaki, 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 Miyaki reported that the Board of Directors met in closed session, as permitted by the Brown Act, to hear a report from the labor negotiators, and instructions were given to the labor negotiators regarding labor negotiations.

ADJOURNMENT

15.	All business having been concluded, the meeting was adjourned at 10:30 a.m., in the memory of Kathleen Moylan Walsh and S. Myron Tatarian.

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District