April 28, 2006
(For Board: May 12, 2006)

REPORT OF THE GOVERNMENTAL AFFAIRS
AND PUBLIC INFORMATION COMMITTEE/
COMMITTEE OF THE WHOLE

Honorable Board of Directors
Golden Gate Bridge, Highway
   and Transportation District

Honorable Members:

A meeting of the Governmental Affairs and Public Information Committee/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday, April 28, 2006, at 9:30 a.m., Chair Boro presiding.

Committee Members Present (7): Chair Boro; Vice Chair Martini; Director Dufty, Kerns, Newhouse Segal, Reilly and Sandoval; President Middlebrook (Ex Officio).
Committee Members Absent (2): Directors Dufty and McGoldrick
Other Members Present (4): Directors Cochran, Eddie, Moylan and Stroeh

Committee of the Whole Members Present (11): Directors Cochran, Eddie, Kerns, Martini, Newhouse Segal, Reilly, Sandoval and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
Committee of the Whole Members Absent (8): Directors Ammiano, Brown, Dufty, Hernández, McGoldrick, Murray, Pahre and Shahum

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/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Public Affairs Director Mary C. Currie; Marketing and Communications Director Kellee J. Hopper; Procurement and Retail Operations Director Lori A. Murray; Assistant Clerk of the Board Karen B. Engbretson

Visitors Present: None

     
1. Status Report on State/Federal Legislation
     
 
General Manager Celia Kupersmith reported on the status of the following federal legislation:
     
 
  • Water Resources Development Act/Larkspur Ferry Channel Dredging: She reported that during the week of April 10, 2006, the District hosted two members of Congress involved with the reauthorization of the Water Resources Development Act (WRDA), which includes language that calls for the U.S. Army Corps of Engineers (Corps) to take on permanent responsibility for the dredging of the Larkspur Ferry Channel.  She stated that Representatives John J. Duncan, Jr. (R-Tenn.) and Jerry F. Costello (D-Ill.) toured the Larkspur Ferry Channel and the District’s facilities at the Larkspur Ferry Terminal.
     
  Discussion ensued, including the following:
     
 
  • Chair Boro, who visited with the members of Congress on their recent trip, commented on the bi-partisan cooperation between Representatives Duncan and Costello with regards to the reauthorization of the WRDA.  Director Boro also commended District Engineer for his outstanding efforts coordinating the visit of the members of Congress.

Action by the Board – None Required

     
2. Approve Actions Relative to RFP No. 2006-D-5, Interior Ferry Advertising:
 

a.

b.

Reject the Sole Bid of Trans4Media; and,

Authorize the Negotiation and Execution of a Professional Services Agreement with Trans4Media

     
 

In a memorandum to Committee, Marketing and Communications Director Kellee Hopper, Deputy General Manager/Administration and Development Teri Mantony, Deputy General Manager/Ferry Division James P. Swindler and General Manager Celia Kupersmith provided staff’s recommendation regarding Request for Proposals (RFP) No. 2006-D-5, Interior Ferry Advertising.  The report stated that as part of the District’s ongoing innovative strategies to generate revenue, staff issued an RFP for an Interior Ferry Advertising Program in August 2005.  No bids were received for this RFP, which called for a one-year demonstration project to provide interior ferry advertising.  In January 2006, the District issued a second RFP for interior ferry advertising for a three-year term, plus two one-year options. 

The report also stated that Bid documents for RFP No. 2006-D-5 were sent to six prospective bidders, and only one bid, by Trans4Media, was received by the due date of March 10, 2006.  Staff and the District’s Attorney reviewed the bid and determined that Trans4Media’s proposal included a number of deficiencies rendering it non-responsive. Among other deficiencies, Trans4Media proposed advertising locations outside of the ferry vessels and a compensation proposal that is different than requested in the RFP.  The report further stated that due to these deficiencies, staff recommends that the bid of Trans4Media be rejected.  However, since Trans4Media was the sole bidder for RFP No. 2006-D-5, and had some worthy ideas in their proposal, staff also recommends undertaking negotiations with Trans4Media to determine whether an interior ferry advertising program can be developed which will raise advertising revenue for the District and meet the business needs of Trans4Media. The report noted that Trans4Media has demonstrated a willingness to work with the District to reach a mutually-agreeable solution.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Kellee Hopper summarized the staff report and explained the situation with Trans4Media’s proposal.  She noted that the proposal had been overly enthusiastic in its scope, by contemplating advertising in places other than what had been outlined in the RFP.  She also noted that Trans4Media is willing to have the District pre-approve all ads that are contemplated for placement.  Celia Kupersmith explained that if staff is authorized to enter into negotiations, it is anticipated that a formal agreement may be reached with Trans4Media within the next two weeks, when this matter will come before the Board of Directors for final approval.  She noted that with the Giants baseball season underway and the District’s special event ferry service to baseball games, it would be an opportune time to undertake an interior ferry advertising project. 

Discussion ensued, including the following:
     
 
  • Director Sandoval inquired as to the location and experience of Trans4Media, and also inquired regarding the legal justification for negotiating with a sole bidder.  In response, Ms. Hopper stated that the company is based in Agoura Hills (Los Angeles County), and that Trans4Media has extensive experience with on-board ferry advertising, working with the Blue & Gold Fleet in the Bay Area and for a ferry operator in Seattle, Washington.  Attorney Miller stated that under the District’s procurement rules and applicable statutes, the District has met its procurement obligations by properly issuing both RFPs and by responding appropriately to the circumstances of an overly ambitious proposal submitted by the sole bidder.  He explained that if Trans4Media’s proposal had been responsive, staff would likely be recommending award of RFP No. 2006-D-5 to Trans4Media.  He further stated that under the District’s procurement rules, the Board is free to legally authorize these negotiations and bring the matter back to the Board for approval.
     
 
  • Director Newhouse Segal inquired as to why there not more interest from the advertising industry in this bid opportunity.  In response, Ms. Kupersmith stated that the company that provides bus shelter advertising for the District was furnished an RFP for interior ferry advertising and did not respond to the RFP.  Ms. Hopper also noted that Trans4Media has filled a niche market for ferry advertising.
     
 
Staff recommended, and the Committee concurred by motion made and seconded by Directors MIDDLEBROOK/SANDOVAL to forward the following recommendation to the Board of Directors for its consideration.
     
 

RECOMMENDATION

     
 
The Governmental Affairs and Public Information Committee recommends that the Board of Directors approve the following actions relative to RFP No. 2006-D-5, Interior Ferry Advertising:
     
  a. Reject the sole bid of Trans4Media, Agoura Hills, CA, as non-responsive; and,
     
  b.

Authorize the negotiation and execution of a professional services agreement with Trans4Media for interior ferry advertising for an initial three-year term, including two successive one-year options, subject to the approval of the General Manager or designee.

Action by the Board – Resolution
NON-CONSENT CALENDAR

     
 
AYES (10):   Directors Cochran, Eddie, Kerns, Martini, Newhouse Segal, Sandoval and Stroeh; Second Vice President Boro; First Vice President Moylan; President Middlebrook
NOES (0):    None
     
3.
Status Report from the Board Appointee on the San Francisco Bay Area Water Transit Authority (WTA)
     
 
Chair Boro, the San Francisco Bay Area Water Transit Authority (WTA) Board Appointee, provided a status report on recent activities of the WTA.  The following items were provided to the Committee of the Whole:
 
  1. Agenda for the April 12, 2006, meeting of Planning and Development Committee;
  2. Agenda for the April 11, 2006, Administrative/Finance/ Legislative Committee;
  3. Agenda for the March 31, 2006, WTA Board Retreat;
  4. Agenda for the March 23, 2006, meeting of the WTA Board of Directors;
  5. Agenda for the February 23, 2006, meeting of the WTA Board of Directors; and,
  6. Minutes of the February 23, 2006, meeting of the WTA Board of Directors.
 

Copies are available in the Office of the District Secretary and on the District’s web site.

Chair Boro reported on topics discussed at the April 27, 2006, meeting of the WTA Board of Directors. He noted the passing of Joseph Freitas, one of the members of the WTA Board of Directors. He stated that the WTA is continuing its negotiations with the City of Alameda regarding the possibility of WTA operating the City’s ferry service. He also stated that the WTA is fortunate to have the District’s former Capital and Grant Programs Manager, Nina Rannells, now on staff with the WTA. He noted that Ms. Rannells recently presented an outstanding analysis of the WTA’s grant funding needs. He also reported that at its April 27th meeting, the WTA Board of Directors approved the award of a contract with Nichols Brothers Boat Builders, Inc., to build two 150-passenger high-speed ferry vessels, which are anticipated to be launched in 2007.

Action by the Board – None Required

     
4. Public Comment
     
  There was no public comment.
     
5. Adjournment
     
 
All business having been concluded, the meeting was declared adjourned at 9:45 a.m.
     

Respectfully submitted,

/s/ Albert J. Boro, Chair
Governmental Affairs and Public Information Committee