October 13, 2006
(For Board: October 27, 2006)

 

REPORT OF THE RULES, POLICY AND INDUSTRIAL
RELATIONS COMMITTEE/COMMITTEE OF THE WHOLE

 

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

Honorable Members:

A meeting of the Rules, Policy and Industrial Relations Committee/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday, October 13, 2006, at 9:30 a.m., Chair Pahre presiding.

Committee Members Present (8): Chair Pahre; Vice Chair Murray; Directors Grosboll, Hernández, Martini, McGoldrick and Newhouse Segal; President Middlebrook (Ex Officio).
Committee Members Absent (0): None
Other Directors Present (5): Directors Cochran, Eddie, Moylan, Reilly and Stroeh

Committee of the Whole Members Present (13): Directors Cochran, Eddie, Grosboll, Hernández, McGoldrick, Martini, Murray, Newhouse Segal, Pahre, Reilly and Stroeh; First Vice President Moylan; President Middlebrook
Committee of the Whole Members Absent (6): Directors Ammiano, Brown, Dufty, Kerns and Sandoval; Second Vice President Boro

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/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Teri W. Mantony; Capital and Grant Programs Analyst (Former DBE Program Administrator) Aida S. Caputo; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

     
1. Approve Adoption of the 2006 Conflict of Interest Code
     
 

In a memorandum to Committee, Deputy General Manager/Administration and Development Teri Mantony, Secretary of the District Janet Tarantino and General Manager Celia Kupersmith reported on staff’s recommendation to approve adoption of the 2006 Conflict of Interest Code and submit it to the Fair Political Practices Commission for its approval.

The report stated that California Government Code Section 87306.5 requires every local agency to review its Conflict of Interest Code (Code) in each even-numbered year and to amend the Code, if needed, due to changed circumstances. During this year’s review, it was determined that the Code should be amended to reflect changes to current job titles and responsibilities. The recommended amendments were presented to the Board of Directors at its meeting of August 11, 2006.

The report also stated that, in accordance with the regulations of the Fair Political Practices Commission, a Notice of Intention to Amend a Conflict of Interest Code (Notice) was posted for a 45-day written comment period from August 4, 2006 to September 18, 2006. The Notice was sent to: 1) the County Clerks of San Francisco, Marin, Sonoma, Napa, Mendocino and Del Norte, the six counties that make up the District; 2) members of the Board of Directors; 3) District employees; and, 4) consultants. In addition, the Notice was posted on the District's web site and on the public notice bulletin board located in the lobby of the Golden Gate Bridge Toll Plaza Administration Building. No comments were received during the 45-day comment period. Therefore, the amended Code is being presented in final form to the Rules Committee and the Board of Directors for adoption. After adoption, it will be sent to the Fair Political Practices Commission for final approval.

The report described the substantive amendments to the Code that were made to the list of designated employees to include two new positions that participate in the making of decisions that may have a material effect on financial interests, as defined in the Political Reform Act and implementing regulations: 1) Property Management and Development Specialist; and, 2) Business Implementation Process Manager. The report also described the non-substantive amendments to the Code that were made to the list of designated employees to revise the titles of existing positions: 1) Environmental, Health & Safety Director to Director of Risk Management and Safety; and, 2) Maintenance Superintendent to Marine Superintendent. There is no fiscal impact associated with approving the amended 2006 Conflict of Interest Code. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

Staff recommended, and the Committee concurred by motion made and seconded by Directors MURRAY/HERNÁNDEZ, to forward the following recommendation to the Board of Directors for its consideration:

     
 
RECOMMENDATION
     
 

The Rules, Policy and Industrial Relations Committee recommends that the Board of Directors approve adoption of the 2006 Conflict of Interest Code and submittal to the Fair Political Practices Commission for its approval.

Action by the Board - Resolution
NON-CONSENT CALENDAR

     
 
AYES (11):  Directors Cochran, Eddie, Grosboll, Hernández, Martini, Murray, Pahre, Reilly and Stroeh; First Vice President Moylan; President Middlebrook
NOES (0):   None
     
 
[Note: The above recommendation will be forwarded to the Board of Directors meeting of October 13, 2006, for action.]
     
2.
Annual Progress Report on FY 05/06 Diversity Program for Contracts, Status Report on FY 06/07 Annual Overall Disadvantaged Business Enterprise (DBE) Goal and an Update on DBE Program
     
 
In a memorandum to Committee, Capital and Grant Programs Analyst (former DBE Program Administrator) Aida Caputo, Deputy General Manager/Administration and Development Teri Mantony and General Manager Celia Kupersmith provided an annual progress report for the FY 05/06 Diversity Program for contracts and procurements, a status report on the FY 06/07 Annual Overall Disadvantaged Business Enterprise (DBE) Goal and an update on the DBE availability and utilization study. A DBE is a small business concern that is at least 51% owned and controlled by socially and economically disadvantaged individuals, historically ethnic minorities and women of any race.
     
 
Annual Progress Report on Fiscal Year 2005/2006 Diversity Program for Contracts
     
 
The report provided an analysis of DBE contract and procurement awards and commitments during FY 05/06.  The report also outlined total disbursements for District-wide contracts and procurements, as well as Federal Transit Administration (FTA)-assisted contracts, and the amounts attributed to DBE contracts and subcontracts.  The report stated that although no annual overall DBE goal was established for District-wide contracts and procurements, the District achieved an overall 6% DBE participation during FY 05/06.  In addition, the District anticipates achieving the 7% established annual DBE goal for FTA-assisted contracts.  There were no Federal Highway Administration (FHWA)-assisted contracts awarded during this reporting period; therefore, there was no DBE participation to report for such contracts.
     
 
Status Report on Fiscal Year 2006/2007 Annual Overall DBE Goal
     
 
The report also stated that the Board of Directors, by Resolution No. 2006-060, at its meeting of July 14, 2006, approved for publication the proposed FY 06/07 annual overall DBE goal for contracts assisted by the U.S. Department of Transportation (U.S. DOT).  The Board authorized the General Manager to formally adopt the goal if no comments were received that required further consideration or modifications to the proposed goal.  The proposed 1% DBE goal was published on June 15, 2006, and no comments were received by the deadline date of July 29, 2006.  Therefore, the District has adopted a 1% FY 06/07 Annual Overall DBE Goal applicable to FTA-assisted contracts.   Other than the Seismic Retrofit Phase IIIA contracts, for which a 12% overall project goal was established in 2005, the District does not anticipate awarding additional FHWA-assisted contracts in the upcoming federal fiscal year.
     
 
Update on DBE Availability and Utilization Study
     
 

The report further stated that on October 14, 2005, staff apprised the Committee of the U.S. Court of Appeals for the Ninth Circuit decision in the case of Western States Paving Co., Inc. v. Washington State Department of Transportation (WSDOT), in which the court found WSDOT’s application of the DBE Program unconstitutional, because the evidence of discrimination supporting its application was inadequate.  In response to this court decision, the General Counsel of the U.S. DOT issued guidelines for recipients of federal financial assistance that require such recipients to gather evidence of discrimination or its effects in the transportation contracting industry. 

To comply with U.S. DOT guidelines, in August 2006, the District entered into a Memorandum of Understanding with several San Francisco Bay Area agencies to conduct a joint DBE availability and utilization study, with the San Francisco Bay Area Rapid Transit District (BART) as the lead agency for this study.  The total budget for this study is $450,000, and the District’s share is $34,615.38, which funds are included in the FY 06/07 Budget.  While the District currently has a race- and gender-neutral DBE program, staff is interested in having some of its specialized contracts/procurements considered in the disparity analysis, as well as those from the counties of Sonoma and Marin, which are not likely to be included in the study. 

On September 1, 2006, consultants were sent a request for Statement of Qualifications (SOQ), for the availability and utilization study that will:  a)  investigate whether or not discrimination exists in the public transportation contracting industry in the Bay Area; and, b)  satisfy the requirements for such a study established by the Ninth Circuit Court of Appeals decision.  The SOQ submission due date was September 26, 2006, award of contract is anticipated in November 2006 and completion of contract is anticipated in May 2007.  A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Aida Caputo provided a brief summary on the FY 05/06 DBE program for contracts, the FY 06/07 annual overall DBE goal and the DBE availability and utilization study.  She noted that, in regards to the annual DBE progress of District-wide contracts, the District has relied upon race-neutral measures for all contracts regardless of funding sources and has achieved 6% DBE participation.   

Discussion ensued, including the following:
     
 
  • In response to an inquiry from Director McGoldrick regarding the guidelines for determining the District’s DBE goal at 1%, Ms. Caputo stated that the two large contracts for FY 06/07 are highly specialized, that no DBE companies are available to perform the work and that the contracts will expend 74% of the total of FTA funding for FY 06/07.  She noted that staff anticipates achieving the DBE goal with the remaining FTA-assisted contracts to be undertaken in FY 06/07.
     
 
  • Director Grosboll inquired as to whether establishing the DBE goal at 1% will cause difficulty for the District to obtain future FTA funding.  In response, Ms. Caputo stated that the District will be qualified for FTA funding with an established 1% DBE goal provided that the District follow FTA regulations.
     
 
  • Director Hernández commended Ms. Caputo for her professionalism and preparedness when presenting a report to the Board of Directors.  In response, Ms. Caputo expressed her gratitude to the Board for their support and positive feedback.

Action by the Board - None Required

     
3. Public Comment
     
 

There was no public comment.

     
4. Adjournment
     
 

All business having been concluded, the meeting was declared adjourned at 9:45 a.m.

     

 

Respectfully submitted,

/s/ Barbara L. Pahre, Chair
Rules, Policy and Industrial Relations Committee