19-2006


GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

NOVEMBER 17, 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, November 17, 2006, at 10:00 a.m., President Middlebrook presiding.

     
ROLL CALL
     
 

Directors Present (15): Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, McGoldrick, Murray, Newhouse Segal, and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook

Directors Absent (4): Directors Kerns, Pahre, Reilly and Sandoval

Staff Present: General Manager Celia G. Kupersmith; District Engineer Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorneys David J. Miller, Jerrold C. Schaefer and Allison M. Woodall; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Ferry Division James P. Swindler; Public Affairs Director Mary C. Currie; Marketing and Communications Director Kellee Hopper; Capital and Grant Programs Manager Gayle S. Prior; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala; Captain Michael Locati

Visitors Present: Susan Deluxe, Tiburon Resident; Kevin Bartram, Sponsorship Strategies, LLC; David Lynch, International Federation of Professional and Technical Engineers, Local No. 21

     
PLEDGE OF ALLEGIANCE
     
  Second Vice President Boro led the Board of Directors in the Pledge of Allegiance to the Flag.
     

PUBLIC COMMENT

     
 
David Lynch requested information regarding pending action by the Board of Directors relative to salary, as well as information on health and welfare benefits, resulting from labor negotiations. In response, President Middlebrook stated that the Board of Directors would provide a report on labor-related matters in open session, following the closed session at the conclusion of this meeting.
     
CONSENT CALENDAR
     
 
Directors BORO/MOYLAN moved approval of the Consent Calendar.  All items were approved by the following vote of the Board of Directors:
     
 
AYES (12):    Directors Ammiano, Brown, Cochran, Eddie, Grosboll, Hernández, Martini, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (7): Directors Dufty, Kerns, McGoldrick, Murray, Pahre, Reilly and Sandoval
     
1.

Approve the Minutes of the Regular Meeting of the Board of Directors of October 27, 2006

Carried

     
2. Denial of Claims
     
  a.

Claim of Mitchell Hughes

Carried

  b.

Subrogation Claim of CSE Insurance

(Insured: Nancy Brookshire)

Carried

     
3
Ratify Actions by the Auditor-Controller
Resolution No. 2006-085
(Finance-Auditing Committee, October 26, 2006) ratifies actions taken by the Auditor-Controller, as follows:
     
  a.
Ratify commitments and/or expenditures for the period September 1, 2006, through September 30, 2006, totaling $11,296.00;
   
  b.
Ratify investments made by the Auditor-Controller during the period September 12, 2006, through October 16, 2006, as follows;
     
SECURITY

PURCHASE

DATE

MATURITY

DATE

ORIGINAL

COST

PERCENT

YIELD

FHLB Disc Note
09/14/06
10/06/06
1,458,386.67
5.16
FHLB Notes (Callable)
09/14/06
02/27/09
4,866,600.00
5.17
Wells Fargo Company Notes
09/22/06
01/15/10
4,850,300.00
5.193
CITIGROUP Funding Commercial Paper
09/21/06
10/23/06
5,733,120.00
5.27
CBA (DE) Finance Commercial Paper
10/02/06
10/31/06
4,978,854.17
5.27
UBS Finance Delaware Commercial Paper
10/02/06
10/24/06
5,232,191.54
5.26
CBA (DE) Finance Commercial Paper
10/05/06
11/06/06
2,990,008.04
5.26
Bear Stearns Co., Inc., Commercial Paper
10/05/06
11/06/06
7,697,976.75
5.26
FHLMC Disc Note
10/06/06
10/31/06
8,312,600.24
5.09
       
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between October 17, 2006, and November 6, 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 September 2006 prepared by Public Financial Management.

Adopted

       
GENERAL MANAGER'S REPORT
       
4. Status Report on TransLink® Implementation
       
 

General Manager Celia Kupersmith highlighted an item in the General Manager’s Report regarding the implementation of TransLink®, the Bay Area universal transit fare payment system. She reported that on November 17, 2006, the District will begin the six-month pre-launch testing period, in which up to 500 Golden Gate Transit and Golden Gate Ferry customers will be recruited to test the TransLink® in a live transit environment. She stated that staff will solicit feedback from these customers as to any problems or challenges they encounter while using TransLink®. She noted that Golden Gate Transit and Golden Gate Ferry, as well as AC Transit, are the first Bay Area transit operators to begin implementation of TransLink®. She mentioned that each Director has been provided a brochure and commemorative pin relative to this project. Further, she commended the hard work of the many District employees who had contributed long hours and extraordinary effort to the development and roll-out of the TransLink® system.

Discussion ensued, including the following:

  • Director Murray inquired as to the types of customers being recruited for TransLink® testing. In response, Ms. Kupersmith stated that staff would be actively recruiting potential TransLink® testers from a wide range of geographic origins and types of transit usage, including both regular commuters and casual transit users.
       
ATTORNEY’S REPORT
       
5.
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 the following matters, as listed on the agenda: 1)  Item No. 6.B.1.a., a recommendation from the Advisory Committee for Labor Relations for action relative to non-represented employees, as well as Memoranda of Understanding with employee bargaining units; 2)   Item No. 6.B.1.b., public employees’ performance evaluation for Officers of the District, as well as associated negotiations involving compensation; and, 3)  Item No. 6.B.1.c., pending workers’ compensation litigation listed on the agenda as Darrell Breedlove vs. Golden Gate Bridge, Highway and Transportation District.
       

ENGINEER’S REPORT

       
6.
District Engineer Denis Mulligan reported that all items contained in the Engineer’s Report were informational.
       
REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF OCTOBER 26, 2006
       
7.
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 October 27, 2006.
       
REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF NOVEMBER 16, 2006
       
8.
Approve Actions Relative to the Award of Contract No. 2007-B-4, Golden Gate Bridge North Approach Viaduct Suspended Maintenance Scaffolding System, to Safway Services, Inc.
       
 

Directors EDDIE/HERNÁNDEZ

Resolution No. 2006-086 approves the following actions relative to the award of Contract No. 2007-B-4, Golden Gate Bridge North Approach Viaduct Suspended Maintenance Scaffolding System:
  a.
Authorize award of Contract No. 2007-B-4 to Safway Services, Inc., Burlingame, CA, in the amount of $1,459,609.50; and,
  b.
Authorize a contract contingency fund in the amount of $145,961, equal to 10% of the contract award;
 

with the understanding that requisite funds (100% District) are available in the FY 06/07 Bridge Division Capital Budget.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF OCTOBER 26, 2006
       
9.
All Non-Consent Calendar items contained in this report are informational.
       
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF NOVEMBER 16, 2006
       
10.
Authorize a Budget Increase in the FY 06/07 Bridge Division Capital Budget Relative to Contract No. 2007-B-2, Merchant Road Improvements and Realignment
       
 

Directors STROEH/BORO
Resolution No. 2006-087
authorizes a budget increase in the FY 06/07 Bridge Division Capital Budget, in the amount of $622,723, to be funded by the Presidio Trust, relative to Contract No. 2007-B-2, Merchant Road Improvements and Realignment.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
11.
Approve Actions Relative to the Filing of the 2005 Grant Application with the U.S. Department of Homeland Security for Ferry Security
       
 

Directors STROEH/MOYLAN
Resolution No. 2006-088
authorizes the General Manager or her designee to execute any necessary actions, including related certifications and assurances, relative to the filing of a grant application with the U.S. Department of Homeland Security, for FY 04/05 Transit Security Grant Program funds, in the amount of $442,000, to support ferry transit security capital projects.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
12.
Receive the Independent Auditor’s Reports and the Financial Statements for the Year Ending June 30, 2006, as Submitted by Macias, Gini & O’Connell, LLP
       
 

Directors STROEH/MARTINI
Resolution No. 2006-089
receives the Independent Auditor’s Reports, Financial Statements and Memorandum on Internal Controls for the year ending June 30, 2006, as submitted by Macias, Gini & O’Connell, LLP.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
13. Approve Actions Relative to Contract No. 97-BT-8, Purchase, Delivery, Installation and Support of Software Program for Golden Gate Transit Fixed Route Bus Scheduling System, with GIRO, Inc., for Miscellaneous Costs and Training
       
 
Directors STROEH/MARTINI
Resolution No. 2006-090
approves the following actions relative to Contract No. 97-BT-8, Purchase, Delivery, Installation and Support of Software Program for Golden Gate Transit Fixed Route Bus Scheduling System:
  a.
Authorize execution of a third amendment to the Professional Services Agreement with GIRO, Inc., in the amount of $95,000, to cover costs associated with an increase in the scope of services relative to miscellaneous costs and training; and,
  b.

Authorize a project budget increase in the FY 06/07 Bus Division Capital Budget in the amount of $70,000, to be funded with $56,000 in existing Federal Transit Administration grant funds and by a budget transfer in the FY 06/07 Bus Division Capital Budget from the Capital Equipment line item to the Contract No. 97-BT-8 Project Budget line item in the amount of $14,000.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
REPORT OF THE TRANSPORTATION COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF NOVEMBER 9, 2006
       
14.
Approve Adoption and Submittal of the Mini Short-Range Transit Plan for Regional Bus and Ferry Service to the Metropolitan Transportation Commission
       
 

Directors BROWN/STROEH
Resolution No. 2006-091
approves adoption and submittal of the District’s Mini Short-Range Transit Plan for regional bus and ferry service for Fiscal Years 2007 through 2016 to the Metropolitan Transportation Commission.

Adopted

       
 
AYES (14):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Kerns, McGoldrick, Pahre, Reilly and Sandoval
       
REPORT OF THE GOVERNMENTAL AFFAIRS AND PUBLIC INFORMATION   COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF NOVEMBER 9, 2006
       
15.
Authorize Execution of a Professional Services Agreement with Sponsorship Strategies, LLC, Relative to Request for Proposals (RFP) No. 2007-D-2, Consultant to Provide Development and Implementation of a Corporate Sponsorship Program
       
  a. Public Comment
       
   
Susan Deluxe expressed her opposition to any commercialization of the Golden Gate Bridge through a corporate sponsorship program and suggested that the Bridge ownership be transferred to the State of California, Department of Transportation.
       
  b. Discussion by the Board
       
   
  • Director Ammiano expressed his appreciation for the opportunity to serve as a member of an advisory committee for the corporate sponsorship program. He also expressed some skepticism regarding the concept of seeking corporate sponsors for the Golden Gate Bridge, but stated that he looks forward to participating in the process.
  • Director Murray expressed her support for the corporate sponsorship program, noting that it is fiscally prudent and responsible for the District to explore this revenue enhancement opportunity. She noted that there is a great deal of misinformation being circulated by the public regarding the role of the District and the possible elements of a corporate sponsorship program, and she emphasized the need for the District to correct those misconceptions.
  • Director Grosboll stated that he shares Director Ammiano’s concerns about pursuing a corporate sponsorship program, but understands the importance of investigating the revenue potential of such a program. He described the discussion that had taken place on this matter at the November 9, 2006, meeting of the Governmental Affairs and Public Information Committee, and he requested that Kevin Bartram, representing Sponsorship Strategies, LLC, make a statement to the full Board of Directors regarding the corporate sponsorship program.
  • Kevin Bartram addressed the Board of Directors, providing assurance that his company would approach the development of a corporate sponsorship program with a significant amount of sensitivity, social responsibility and environmental stewardship. He described similar work that Sponsorship Strategies, LLC, had undertaken for other governmental agencies, municipalities, universities and non-profit organizations, for which the use of corporate signage or garish corporate representation is not appropriate. He emphasized the creative and collaborative process that will be followed in developing a corporate sponsorship program, and that any concerns on the part of the Board of Directors or the public will be addressed during the process. He expressed his appreciation for the opportunity to develop this program for the District.
  • Director Boro noted that the advisory committee for the corporate sponsorship program will take an active role in the process, working cooperatively with staff and the consultant.
  • Ms. Kupersmith clarified that the action proposed at this time is to embark on Phase I of the corporate sponsorship program, to develop an analysis of what such a program would look like. She emphasized that the Board of Directors would make a separate decision whether or not to pursue an actual corporate sponsorship program after that six-month analysis is completed. She further noted that the advisory committee being formed will not have the authority to make any decisions, but that all decisions will be brought to the Board of Directors with many opportunities for public input, discussion and reporting out during the next six months.
  • President Middlebrook expressed her support for the corporate sponsorship program, noting that the Board of Directors clearly understands the sensitivity of the project.
       
  c. Action by the Board
       
   

Directors BORO/MARTINI
Resolution No. 2006-092
authorizes execution of a Professional Services Agreement with Sponsorship Strategies, LLC, Novato, CA, in an amount not to exceed $89,920, relative to Request for Proposals (RFP) 2007-D-2, Consultant to Provide Development and Implementation of a Corporate Sponsorship Program, for Phase I of the Corporate Sponsorship Program, the asset identification and program development phase, with the understanding that Phase II of the Program will not be undertaken unless specifically approved by a separate action of the Board of Directors.

Adopted

       
   
AYES (15):    Directors Ammiano, Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Martini, McGoldrick, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (4): Directors Kerns, Pahre, Reilly and Sandoval
       
  d. Announcement
       
   
President Middlebrook announced the formation of the Corporate Sponsorship Advisory Committee (Advisory Committee), comprised of the following members of the Board of Directors:  Chair Boro; Committee Members Ammiano, Brown, Cochran, Kerns, Pahre, Reilly and Stroeh; and, President Middlebrook.  She stated that the specific purpose of this Advisory Committee is to provide staff with guidance and oversight during Phase I of the corporate sponsorship program.  The Advisory Committee will report on its activities to the Governmental Affairs and Public Information (GAPI) Committee, and any recommended actions from the GAPI Committee will be forwarded to the full Board of Directors for its consideration.  The Advisory Committee will undertake its business some time in early 2007, and is expected to conclude its business in July 2007.  If the Board decides to move forward with Phase II of corporate sponsorship program implementation, the Board President will decide, at that time, if an advisory committee for Phase II of the program should be created.
       
CLOSED SESSION
       
16. Attorney’s Report
       
 

Attorney David Miller, at the request of President Middlebrook, stated that the Board of Directors would meet in closed session, as permitted by the Brown Act, to consider the following matters: 1)  labor coalition negotiations; 2)  performance evaluations of Officers and associated negotiations involving compensation; and, 3)  a matter of pending litigation listed on the agenda as Darrell Breedlove vs. Golden Gate Bridge, Highway and Transportation District (District).  Mr. Miller also stated that the Board of Directors would then convene in open session for possible action regarding these matters.

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 discuss the matters listed above.  With respect to the closed session matters, Mr. Miller reported as follows:
       
  a. Pending Litigation (Item No. 6.B.1.c.)
       
   
Mr. Miller reported that the Board of Directors received a recommendation from the Finance-Auditing Committee with regard to the case of Darrell Breedlove vs. District, a workers’ compensation claim.  He stated that the Board unanimously provided settlement authority for disposition of this matter.
       
  b. Labor Coalition Negotiations (Item No. 6.B.1.a.)
       
   
Attorney Miller stated that, for the record, the August 7, 2006 labor coalition negotiation settlement, which has been approved and ratified by 20 units of the labor coalition, contained a provision that the effective date of wage adjustments provided for in that agreement would not become operative until all unions have ratified.  He further stated that, at this time, there are seven units that have not yet ratified.  The Advisory Committee for Labor Relations and the Board of Directors have considered a recommendation from the General Manager to waive the condition regarding the effective date, and the following implementation of that recommendation was presented for action:
       
    1.
Authorize Execution of Memoranda of Understanding with Employee Labor Units as a Result of Labor Coalition Negotiations
       
      a)   Director Hernandez stated that she would recuse herself from the vote on this action, since she is a representative of the International Brotherhood of Electrical Workers, one of the unions in the Union Coalition.
       
     

b)   Directors STROEH/MOYLAN
Resolution No. 2006-093
authorizes execution of Memoranda of Understanding, covering a three-year term, through June 30, 2009, and incorporates the wage and medical benefits package dated August 7, 2006, negotiated with the Union Coalition, as well as all such other terms and conditions that have been negotiated with each recognized employee units and that have been approved by the District, with the understanding that the 4% wage increase component will become effective November 6, 2006, the first day of the pay period in which this Board action is taken, for each employee unit whose members ratify the settlement on or before November 19, 2006, or will become effective on the first day of the pay period during which ratification is approved, if after November 19, 2006.

Adopted

       
     
AYES (13):    Directors Ammiano, Cochran, Dufty, Eddie, Grosboll, Martini, McGoldrick, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):       None
ABSENT (5):  Directors Brown, Kerns, Pahre, Reilly and Sandoval
ABSTAIN (1): Director Hernández
       
   
Attorney Miller stated that the next matter for consideration concerned non-represented employees, excluding Officers of the District:
       
    2.
Approve Wage Increase and Modifications to Medical Benefit Plans and Related Actions for Non-Represented Employees
       
     

Directors STROEH/MOYLAN
Resolution No. 2006-094
approves a 4% wage increase for all non-represented District employees, other than Officers of the District, effective November 6, 2006, the first day of the pay period in which this Board action is taken; approves implementation of modifications to medical benefit plans pursuant to Board Resolution No. 2006-093 and effective July 1, 2007; approves a 2.5% at age 55 pension to be fully funded by employees once all steps necessary to implement such a benefit level have been successfully concluded; and, authorizes the General Manager, with the concurrence of the Attorney, to amend the Human Resources Guide to incorporate a modification of the Bereavement Leave Policy and to provide for pro-rated retiree medical benefit service credit for 30-hour or more regular part-time employees.

Adopted

       
     
AYES (14):    Directors Ammiano, Cochran, Dufty, Eddie, Grosboll, Hernández Martini, McGoldrick, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Brown, Kerns, Pahre, Reilly and Sandoval
       
  c. Public Employee Performance Evaluation (Item No. 6.B.1.b.)
       
   

Attorney Miller stated that the Board received a report from the Advisory Committee for Review of Officers of the District (Advisory Committee) regarding the performance evaluations and associated compensation of the General Manager, the District Engineer, the Auditor-Controller and the Secretary of the District.  He further reported that Chair Boro would present the Advisory Committee’s recommendation relative to those performance evaluations.

Chair Boro presented the following recommendation for action:

       
    1.
Approve Actions Relative to the Performance Evaluations of the Officers of the District
       
     

Directors BORO/MARTINI
Resolution No. 2006-095
approves a 4% wage increase for the General Manager, Engineer, Auditor-Controller and Secretary, effective November 6, 2006, the first day of the pay period in which this Board action is taken; and, approves a one-time supplemental payment in the amount of $6,000 for the General Manager, $5,000 for the Engineer, $4,000 for the Auditor-Controller and $3,000 for the Secretary, which may, at the election of each officer, be allocated in whole or part, into the Deferred Compensation Plan administered by the District.

Adopted

       
     
AYES (14):    Directors Ammiano, Cochran, Dufty, Eddie, Grosboll, Hernández Martini, McGoldrick, Murray, Newhouse Segal, and Stroeh; First Vice President Moylan; Second Vice President Boro; President Middlebrook
NOES (0):     None
ABSENT (5): Directors Brown, Kerns, Pahre, Reilly and Sandoval
       
ADJOURNMENT
       
17.
All business having been concluded, the meeting was adjourned in the memory of George Hammonds, James Edesmond Smart, Darrell Schlee, Arnold Medeiros and Anthony Dedier, at 11:05 a.m.
       

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District