03-2007

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

FEBRUARY 9, 2007

 

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, February 9, 2007, at 10:00 a.m., President Moylan presiding.

ROLL CALL

Directors Present (14): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre; First Vice President Boro; President Moylan

Directors Absent (5): Directors Hernández, Reilly, Sandoval and Stroeh; Second Vice President Ammiano

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; Public Affairs Director Mary C. Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Karen B. Engbretson; Lieutenant Paul Linder

Visitors Present: None

PLEDGE OF ALLEGIANCE

Director Harold C. Brown, Jr., led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

There was no public comment.

CONSENT CALENDAR

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

AYES (14): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (5): Directors Hernández, Reilly, Sandoval and Stroeh; Second Vice President Ammiano

     
1.

Approve the Minutes of the Regular Meeting of the Board of Directors of January 26, 2007

Carried

     
2. Denial of Claims
     
  a.

Subrogation Claim of Allstate Insurance Company (Insured: Eric Roos)

Carried

     
3.
Ratify Actions by the Auditor-Controller
Resolution No. 2007-007
(Finance-Auditing Committee, January 25, 2007) ratifies actions taken by the Auditor-Controller, as follows:
     
  a.
Ratify commitments and/or expenditures for the period of December 1, 2006, through December 31, 2006, totaling $32,547.00;
     
  b. Ratify investments made by the Auditor-Controller during the period December 5, 2006, through January 15, 2007, as follows;
     
SECURITY

PURCHASE

DATE

MATURITY

DATE

ORIGINAL

COST

PERCENT

YIELD

Dexia Delaware LLC Commercial Paper
12/05/06
12/21/06
8,999,951.00
5.25
FHLMC Disc Note
12/13/06
12/26/06
2,167,960.68
5.16
Morgan Stanley Commercial Paper
12/18/06
01/16/07
7,780,827.40
5.29
Barclays Bank PLC NY Certificate of Deposit
12/21/06
03/21/07
10,000,000.00
5.32
Goldman Sachs Group Commercial Paper
12/21/06
01/31/07
8,413,006.75
5.29
Societe Generale NA Commercial Paper
12/26/06
03/01/07
7,224,595.56
5.32
UBS Fin Delaware LLC Commercial Paper
01/05/07
02/07/07
5,821,820.06
5.28
         
  c.
Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between January 15, 2007, and February 12, 2007, and all other funds not required to cover expenditures that may become available; and,
         
  d.

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

Adopted

         
GENERAL MANAGER'S REPORT
         
4.

Distinguished Budget Presentation Award from the Government Finance Officers Association

General Manager Celia Kupersmith announced that the District has been honored with the Distinguished Budget Presentation Award by the Government Finance Officers Association (GFOA). Ms. Kupersmith stated that for the first time in the history of the District, the District’s budget document has been recognized by the GFOA, a national association of government finance professionals, as meeting nationally recognized guidelines for effective budget presentation. She noted that this award represents a significant achievement by the District, demonstrating how much progress the District has made over the past ten years to improve its budget document. She publicly commended Auditor-Controller Joseph Wire and the following Auditor-Controller staff members who are primarily responsible for preparing the budget document: Budget and Program Analysis Manager Jennifer Mennucci, Capital and Grant Programs Manager Gayle Prior, Budget Program Analyst Joanne Leone, Budget Program Analyst Rick Driscoll, Business Process Analyst Alice Ng, Capital and Grant Programs Analyst Lynne Yu and Administrative Assistant Jeff Dion. Ms. Kupersmith also acknowledged the leadership of the Board of Directors and the Executive Team for providing the guidance and necessary documentation to create a successful budget that also concurrently serves as a policy document, a financial plan and an operations guide that effectively communicates the District’s financial health.

Joseph Wire recognized the General Manager’s commitment to improving the budget document and also acknowledged the contributions of the Deputy General Managers and other management staff in preparing the sections of the budget document pertaining to work plans and accomplishments.

         
5.

Presentation of Employee of the Month Award for February 2007 to Neil Hurley, Deckhand, Ferry Division

President Moylan presented the Employee of the Month Award for February 2007 to Neil Hurley, Deckhand, Ferry Division, and expressed his congratulations on behalf of the Board of Directors.

         
6.

Announcement Regarding Timing of Potential Toll Increase

Celia Kupersmith reported that the Board of Directors, at its September 8, 2006 Joint Board of Directors Meeting/Workshop, directed staff to begin the process for a potential toll increase on the Golden Gate Bridge in early 2007, as one of the strategies to address the District’s remaining $87 million five-year shortfall. Ms. Kupersmith stated that another key deficit reduction strategy, the development of a Partnership Program, is currently underway. In light of the fact that the Partnership Program is not yet fully developed, Ms. Kupersmith advised that, after consulting with President Moylan, it was determined that further action regarding a potential toll increase should be deferred until more is known about the possibility of a Partnership Program and its potential to help reduce the District’s remaining shortfall. Ms. Kupersmith stated that a meeting of the Corporate Partnership Advisory Committee was held February 8, 2007, and she briefly explained the status of Phase I of the Partnership Program. She noted that the preliminary in-depth analysis currently underway does not involve naming rights or other advertising strategies that are not being considered by the District, but may include identification of District assets appropriate for partnership opportunities. She further stated that it is anticipated that the Partnership Program consultants will present their findings to the Board of Directors in May 2007, after which the Board of Directors will discuss whether to proceed with Phase II, the implementation of a Partnership Program.

Discussion ensued, including the following:

  • Director McGoldrick inquired as to how much of the five-year shortfall of $87 million would be solved by the Partnership Program and how much would be solved by a potential toll increase. In response, Ms. Kupersmith stated that at the September 8, 2006 Joint Board of Directors Meeting/Workshop, the Board discussed several toll increase options which would generate $75 million to $80 million in revenue over a five-year period. She stated that staff is seeking more information in order to determine how much revenue can be generated by the Partnership Program, as well as by other deficit reduction strategies. She noted that it is assumed that other deficit reduction strategies, in addition to a potential toll increase, will be needed to address the $87 million shortfall.
  • Director Grosboll expressed his concerns about adequate moneys being raised by a Partnership Program in lieu of a potential toll increase. In response, Ms. Kupersmith stated that the Partnership Program is not intended to take the place of a potential toll increase, but would be just one of several strategies that the District will undertake to address the shortfall.
         
ATTORNEY’S REPORT
         
7.
Attorney David Miller reported that all items contained in the Attorney’s Report were informational.  Mr. Miller also reported that it would not be necessary to hold a closed session at the conclusion of the meeting, regarding Item No. 6.B.1., listed on the Agenda as, Employment Contracts for the Auditor-Controller and the Secretary of the District.  He stated that the Advisory Committee for Review of Officers of the District, which met February 9, 2007, have not yet completed its discussions regarding the employment contracts for the Auditor-Controller and the Secretary of the District.  Therefore, he reported that the matter will be continued for further discussion at the February 23, 2007 meeting of the Board of Directors.
         
ENGINEER’S REPORT
         
8.

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 on January 31, 2007, the District advertised Contract No. 2006-B-1, Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing and North Pylon.  He noted that the advertisement of this contract is a significant milestone for the District, and he commended the leadership of Deputy District Engineer Ewa Bauer and the efforts of other key Engineering Department staff, the attorneys and the consultant team regarding this project.  He stated that the contract is 100% grant funded, and it is anticipated that the bid opening for Contract No. 2006-B-1 will take place on May 1, 2007.

         
REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JANUARY 25, 2007
         
9.
All items contained in this report are informational, as the items requiring Board action were acted upon by the Board of Directors at its meeting of January 26, 2007.
         
REPORT OF THE TRANSPORTATION COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 8, 2007
         
10.

Authorize Execution of an Agreement with the County of Marin Department of Public Works to Operate the Third Year of the Muir Woods Shuttle Bus Demonstration Project

Directors BROWN/KERNS
Resolution No. 2007-008
authorizes execution of an agreement with the County of Marin Department of Public Works to operate the third year of the Muir Woods Shuttle Bus Demonstration project, beginning Saturday, May 5, 2007, through Sunday, September 30, 2007, at an approximate cost of $249,475, with the understanding that the County of Marin will reimburse the Golden Gate Bridge, Highway and Transportation District for providing said service.

Adopted

AYES (14): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (5): Directors Hernández, Reilly, Sandoval and Stroeh; Second Vice President Ammiano

         
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JANUARY 25, 2007
         
11.
All Non-Consent Calendar items contained in this report are informational.
         
REPORT OF THE RULES, POLICY AND INDUSTRIAL RELATIONS COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 9, 2007
         
12.

Approve Two Capital-Funded Positions to Support Major Technology Projects

Directors MARTINI/KERNS
Resolution No. 2007-009
approves the following actions relative to staffing changes:

  a.
Add one regular Senior Applications Support Specialist position in the Information Systems Department, District Division, at a salary range of $72,150 – $87,224, plus fringe benefits, to provide project oversight and support for continued implementation of the Spear technology system;
  b.
Add one regular Communication Systems Project Manager position in the Electrical Department, Bridge Division, at a salary range of $80,746 – $97,594, plus fringe benefits, to coordinate the development, installation, training, and initial operation and maintenance of the various components of the Radio Replacement and Intelligent Transportation System project; and,
  c. Amend the Table of Organization accordingly;
 

with the understanding that: 1) the Senior Applications Support Specialist position will be 65% grant funded, with the remaining 35% monies to be derived from the District Division Operating budget, for the first 12 months, and with the further understanding that following the 12-month period, monies for this position will be included in the District Division Operating budget; and, 2) the Communication Systems Project Manager position will be 80% grant funded with the remaining 20% monies to be derived from the Bus Division Operating budget, for the first 12 months, and with the further understanding that following the 12-month period, this position will be funded in the Bus Division Capital budget for the life of the Radio Replacement and Intelligent Transportation System project, which is anticipated to last three to five years and, at the end of the project, it is anticipated that monies for this position will be included in the Bridge Division Operating budget.

Adopted

AYES (14): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (5): Directors Hernández, Reilly, Sandoval and Stroeh; Second Vice President Ammiano

         
13.

Approve an Amendment to Rule III of the Rules of the Board Relative to Bringing Forward Actions by a Committee to the Board of Directors for Consideration

Directors MARTINI/KERNS
Resolution No. 2007-010
approves an amendment to Rule III, COMMITTEES, Subsection D, Committee Reports and Agenda, of the Rules of the Board, by replacing the third paragraph in its entirety to read as follows:

“Matters calendared for Committee meetings resulting in recommendations for action by the Board shall be presented at the next regularly scheduled Board meeting, unless otherwise decided by the Committee Chair.”

Adopted

AYES (14): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (5): Directors Hernández, Reilly, Sandoval and Stroeh; Second Vice President Ammiano

         
ADJOURNMENT
         
14.
All business having been concluded, the meeting was adjourned at 10:25 a.m., in the memory of Leo T. McCarthy, Joseph King, Frances L. Del Moro, Michael Doyle, Jared Michael and Vincent Landaker.
         

Respectfully submitted,
/s/ Janet S. Tarantino
Secretary of the District