ROLL CALL

Directors Present (14): Directors Cochran, Eddie, Hernández, Kerns, Martini, McGoldrick, Murray, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Moylan; President Middlebrook

Directors Absent (4): Directors Ammiano, Brown and Dufty; Second Vice President Boro

[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 David J. Miller; Attorney Jerry Schaefer; Attorney Allison Woodall; 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; Deputy Engineer Ewa Z. Bauer; Public Affairs Director Mary C. Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala; Captain Locati

Visitors Present: Jennifer Fox, San Francisco Bicycle Coalition; Jerry Grace, Oakland resident; Teri Shore, Bluewater Network

Jennifer Fox, introduced herself to the Board of Directors and informed the Board that she has submitted her name to the Board of Supervisors of the City and County of San Francisco as a candidate to fill the vacancy on the Board, as a result of Leah Shahum’s resignation.

Approve the Minutes of the Regular Meeting of the Board of Directors of June 9, 2006

Carried

Claim of MV Transportation

Carried

Claim of Mark Phinney

Carried

Teri Shore, Clean Vessels Campaign Director, Bluewater Network, an environmental advocacy group working specifically in the maritime arena, expressed her concerns regarding the environmental impact of vessels and the use of advanced air pollution controls.  She suggested that the Board adopt similar emissions standards as those adopted by the San Francisco Bay Area Water Transit Authority (WTA).  She noted that the WTA is in the process of procuring two vessels and that these vessels are rated 85% below the 2007 United States Environmental Protection Agency (EPA) regulations.  She noted that there is technology available that can make vessels clean and environmentally sound.

• Director McGoldrick made the following comments and inquires:

  • He inquired as to whether Ms. Shore attended the Building and Operating Committee meeting on June 22, 2006.  In response, Ms. Shore stated that she was not aware that a meeting of the Building and Operating Committee was taking place on that date.
  • He recommended that the Board consider amending the staff recommendation to incorporate special language to address the air pollution issue and to ensure that the District will procure a vessel that is environmentally friendly.  In response, Ms. Kupersmith stated that the item before the Board includes the implementation of an environmental analysis.  She noted that Bluewater Network will have an opportunity to participate in the environmental review process.
  • He further recommended that the staff recommendation be amended to read, “up to 499 passengers,” rather than, “499-passenger-capacity vessel,” so as to avoid limiting the possibility of getting the least-polluting vessel.

• Director Sandoval made the following comments and inquiries:
  • He inquired as to how staff would incorporate environmental analysis in the RFP documents.  In response, Ms. Kupersmith stated that the Deputy General Manager/Ferry Division and the Attorney will include all of the appropriate language in the RFP documents, including issues related to emission controls, wake/wash and landside parking.
  • He inquired as to whether it is the District’s intent to procure a vessel that will either meet or exceed EPA standards.  In response, Ms. Kupersmith stated that the District will conduct the required environmental analysis of the vessel replacement project and will present the findings to the Board.  In addition, Mr. Miller stated that this matter deals fundamentally with the method of procurement of a new high-speed ferry vessel  through a competitive negotiation, rather than by award of a low bid.  This matter is being brought forward to the Board to obtain policy guidance for such items as to the type of vessel, the nature of the vessel and the method of procurement, with the understanding that based on the Board’s guidance, staff would develop requisite plans and carry out environmental analysis.
  • He requested that staff provide a detailed description of the process it takes to develop proposal specifications incorporating environmental issues.  In response, Mr. Swindler stated that staff would evaluate all available technology, including the reliability factor of said technology.  He further stated that staff would engage the services of consultants that specialize in environmental standards for marine engines, with the understanding that the District’s goal is to achieve a level of reliability regardless of which environmental standard is accepted.
  • He inquired as to whether the District will receive community input, other than by way of public comment at Committee and/or Board of Directors meetings.  In response, Mr. Swindler stated that the procurement of the vessel will be a public process.  Mr. Miller added that because federal funds are associated with the procurement of this vessel, a National Environmental Policy Act and a California Environmental Quality Act analyses will have to be undertaken.  He further stated that, in addition to the technical side of this project, there will be a legally driven, customarily followed environmental process that will have to occur, allowing for an opportunity for a broader community to participate in the process.
  • He stated that, in his experience in the procurement of hybrid diesel vehicles, if the specification is limited to a particular number combined with the level of reliability, it would narrow the choices with certain technologies.  He concurred with Director McGoldrick that if the District locks into a specifying a “499-passenger-capacity” vessel, it may preclude the opportunity to obtain the most environmentally friendly vessel.

• Director Newhouse Segal expressed her concerns that by amending the staff recommendation to read, “up to 499 passengers,” it could set back the District’s goal to solve the problem of overcrowding during weekday morning peak hours by procuring a vessel that will provide highest-possible capacity for peak periods.  Following further discussion among the Board members present, it was determined that the wording in the recommendation from the Building and Operating Committee would be amended to read, “with an approximate passenger capacity of 499.”

Directors SANDOVAL/MCGOLDRICK moved that the staff recommendation relative to the purchase of a replacement vessel be amended to read, “with an approximate passenger capacity of 499,” rather than, “499-passenger-capacity vessel.”

Carried

Directors EDDIE/COCHRAN

Directors EDDIE/MOYLAN

Authorize a budget increase in the amount of $581,500, to be funded with additional grant funds in the amount of $254,870 and $326,630 from the District’s Restricted Reserves, as concurred with by the Finance-Auditing Committee at its meeting of June 22, 2006.

Adopted

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 General Manager and labor negotiators, and instructions were given to the General Manager and labor negotiators to effect conclusive negotiations in a timely fashion.