06-2007

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

MARCH 23, 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, March 23, 2007, at 10:00 a.m., President Moylan presiding.

ROLL CALL

	Directors Present (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan Directors Absent (3): Directors Dufty and Middlebrook; 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 Madeline Chun; 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 Engineer Ewa Bauer; Public Affairs Director Mary C. Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala Visitors Present: Anthony R. Withington, President, Amalgamated Transit Union, Local No. 1575; Jerry Grace, Oakland resident

PLEDGE OF ALLEGIANCE

	Director James C. Eddie, led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

	Jerry Grace expressed his gratitude for receiving a birthday card from the Office of the Secretary of the District. He also inquired about the outcome of the District’s legislative trip to Washington, DC, the meeting schedule of the Water Transit Authority Board of Directors meetings, and the festivities being planned for the 75th birthday of the Golden Gate Bridge.

CONSENT CALENDAR

	Attorney Madeline Chun advised that the matter listed on the Agenda as Item No. 2.b. Insufficient Claim of Franklin Carlton, should be acted upon as Amended Claim of Franklin Carlton, as new information relative to the claim had been received subsequent to the posting of the Agenda. Directors EDDIE/BORO moved approval of the Consent Calendar. All items were approved by the following vote of the Board of Directors: AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

1.	Approve the Minutes of the Following Meetings:

	a.	Transportation Committee/Committee of the Whole of March 8, 2007;
	b.	Finance-Auditing Committee/Committee of the Whole of March 8, 2007;
	c.	Rules, Policy and Industrial Relations Committee/Committee of the Whole of March 9, 2007; and,
	d.	Regular Meeting of the Board of Directors of March 9, 2007. Carried

2.	Denial of Claims

	a.	a. Subrogation Claim of Progressive Choice Insurance Company (Insured: Daniel S. Monks) Carried
	b.	Amended Claim of Franklin Carlton Carried
	c.	Insufficient Claim of Marwin Ortega Carried
	d.	Insufficient Claim of Nelson Roche Carried
	e.	Insufficient Claim of Damaris Vasquez Carried

GENERAL MANAGER'S REPORT

3.	Presentation of Twenty-Five-Year Service Award to Wiley Johe, Bus Operator, Bus Division

	President Moylan presented a Twenty-Five-Year Service Award to Wiley Johe, Bus Operator, Bus Division, and expressed his congratulations on behalf of the Board of Directors.

4.	Announcement

	General Manager Celia Kupersmith announced that on Monday, May 28, 2007, the Golden Gate Bridge (Bridge) will be celebrating its 70th Anniversary, stating that the Golden Gate Bridge was opened for pedestrian traffic on May 27, 1937. Ms. Kupersmith stated that, although the District will not be hosting any formal celebrations in honor of the Bridge’s 70th anniversary, the District will be releasing for sale the new limited edition book: The Golden Gate Bridge, Report of the Chief Engineer, Volume II. The creation of this book was a collaborative effort by retired Consulting Engineer Frank Stahl, retired District Engineer Dan Mohn and Public Affairs Director Mary Currie. In addition, the District will be releasing for sale the 5th Annual Collectible Holiday Ornament. Finally, she stated that there will be local and national television coverage that will focus on the Bridge’s history.

ATTORNEY’S REPORT

5.	Attorney Chun reported that all items contained in the Attorney’s Report were informational.

ENGINEER’S REPORT

6.	District Engineer Denis Mulligan reported that all items contained in the Engineer’s Report were informational. Discussion ensued, including the following: Director Grosboll inquired as to the status of the completion of Phase II of the Golden Gate Bridge Seismic Retrofit. In response, Mr. Mulligan stated that the contractor is behind schedule on painting and the District will be tracking liquidated damages. He also stated that staff anticipates job completion by August 2007.

REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 22, 2007

7.	Approve Actions Relative to the Execution of a Professional Services Agreement with Fast Ferry Management, Inc., Relative to Request for Proposals (RFP) No. 2007-FT-8, Consultant to Provide Project Management and Construction Oversight for New High-Speed Passenger Ferry

	a.	Discussion by the Board


		Director Martini commented that Assembly Bill No. 463 (AB 463) may impose potentially strict regulations on ferry operators and would require ferry operators to reduce emissions from EPA-mandated clean diesel ferry engines by an additional 85%. He stated that AB 463, as currently drafted, appears to require that the District’s new high-speed passenger ferry vessel meet certain air emission test levels, which could significantly impact the budget. He requested that staff keep abreast of the latest modifications to this legislation and collect the necessary data to ensure that the mandated technology is feasible during the development of the specifications of a new high-speed ferry vessel. In response, Ms. Kupersmith stated that staff will work with the key players to ensure that the final specifications for this purchase will require compliance with all applicable standards, including AB 463 if passed. Director Grosboll requested that staff present a report to the Board that would address the environmental issues related to AB 463. In response, Ms. Kupersmith stated that staff is performing an analysis and preparing a report regarding the proposed legislation, which will be provided to the Directors upon completion.

	b.	Directors EDDIE/STROEH Resolution No. 2007-020 approves the following actions relative to Request for Proposal No. 2007-FT-8, Consultant to Provide Project Management and Construction Oversight for New High-Speed Passenger Ferry:
		1.	Authorize execution of a Professional Services Agreement relative to RFP No. 2007-FT-8 with Fast Ferry Management, Inc., Silverdale, WA, in an amount not to exceed $265,500, to develop specifications and performance requirements, and to provide construction oversight and project management, for the procurement of a new high-speed ferry; and,
		2.	Authorize a contingency fund in the amount of $9,500;
		with the understanding that requisite funds (80% Federal/20% District) are available in the FY 06/07 Ferry Transit Division Capital Budget and that requisite funds will be included in the FY 07/08 Ferry Transit Division Capital Budget. Adopted

		AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

8.	Approve Relocation of Two Access Easements Across the Sonoma-Marin Area Rail Transit District’s Right-of-Way North of Cal Park Hill Tunnel

	Directors EDDIE/STROEH Resolution No. 2007-021 approves the relocation of two access easements across the Sonoma-Marin Area Rail Transit District’s right-of-way north of the Cal Park Hill Tunnel; and, authorizes the General Manager to execute a Quitclaim Deed to extinguish existing easements, to accept new replacement easements and to execute all necessary documents as approved by the Attorney for the District. Adopted

	AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 22, 2007

9.	Approve Actions Relative to the Filing of Federal Transit Administration Grant Applications and the Execution of Related Agreements for Federal Transportation Assistance

	Directors STROEH/KERNS Resolution No. 2007-022 approves the following actions relative to the filing of Federal Transit Administration (FTA) grant applications and the execution of related agreements for federal transportation assistance:
	a.	Authorize the General Manager or her designee to execute and file grant applications with FTA for federal assistance;
	b.	Authorize the President of the Board of Directors or his designee to execute grant and cooperative agreements with FTA;
	c.	Authorize the General Manager or her designee to execute and file annual certifications and assurances and other documents FTA requires before awarding a federal assistance grant or cooperative agreement; and,
	d.	Amend Resolution No. 2001-019. Adopted

	AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

10.	Approve Renewal of the Property Insurance Program

	a.	Discussion by the Board

		Discussion ensued, including the following: Director Brown inquired as to the rate at which the District’s Self-Insurance Loss Reserve grows. In response, Mr. Wire stated that the overall asset grows at an approximate rate of 5%.

	b.	Directors STROEH/EDDIE Resolution No. 2007-023 approves the following actions relative to the renewal of the Property Insurance Program:

		1.	Authorize the General Manager to bind the coverage for the renewal of the District Buildings and Facilities policy, with the panel of carriers as recommended by the District’s Insurance Advisor, providing “all risk” coverage for all land-based District facilities, except the Bridge itself, in case of fire, flood and earthquake, with a limit of liability of $20 million per flood and earthquake occurrence, with a limit of liability of $45 million per fire occurrence and a deductible of $250,000 each loss for fire, including 5% of value for flood and earthquake, at a premium not to exceed $755,000, for a one-year term, effective April 8, 2007, through April 7, 2008; with the understanding that requisite funds are available in the FY 06/07 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 07/08;

		2.	Renew the Boiler and Machinery policy with Hartford Steam Boiler Company, providing coverage for the breakdown of equipment, including all boilers, fired storage water heaters, fired coil water heaters, electric steam generators, sandblasting equipment and all metal unfired pressure vessels used as air tanks, which objects require city and state inspection and certification, with a limit of liability of $1 million per accident and a deductible of $1,000 per accident, at a premium of $2,663, for a one-year term, effective April 8, 2007, through April 7, 2008; with the understanding that requisite funds are available in the FY 06/07 Bridge, Bus, Ferry and District Division Operating Budgets and that requisite funds will be budgeted in the appropriate division operating budgets for FY 07/08; and,

		3.	Allocate monies to the Restricted Bridge Self-Insurance Loss Reserve in the amount of $1,300,000 for FY 07/08, with the understanding that this Reserve is to be used in the event of catastrophic damage to the Golden Gate Bridge or the sustained loss of toll revenue; and, with the further understanding that requisite funds are available in the FY 07/08 Bridge Division Operating Budget. Adopted

		AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

11.	Receive the Independent Auditor’s Engagement Letters as Submitted by Macias Gini & O’Connell LLP for the FY 06/07 Financial Audit and the FY 05/06 Supplemental Retirement Plan Directors STROEH/KERNS Resolution No. 2007-024 receives the Independent Auditor’s Engagement Letters as submitted by Macias Gini & O’Connell LLP for the FY 06/07 Financial Audit and the FY 05/06 Supplemental Retirement Plan. Adopted AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

REPORT OF THE GOVERNMENTAL AFFAIRS AND PUBLIC INFORMATION COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 23, 2007

12.	Approve Actions Relative to Designation of the Golden Gate Bridge as a Safety Awareness Zone Directors BORO/KERNS Resolution No. 2007-025 approves the following actions relative to the designation of the Golden Gate Bridge as a Safety Awareness Zone, in accordance with the provisions of Senate Bill No. 988: a. Designate the Golden Gate Bridge as a Safety Awareness Zone; and, b. Approve a Safety Awareness Zone Plan, as attached. Adopted AYES (16): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Newhouse Segal, Pahre, Reilly, Sandoval and Stroeh; First Vice President Boro; President Moylan NOES (0): None ABSENT (3): Directors Dufty and Middlebrook; Second Vice President Ammiano

ADJOURNMENT

13.	All business having been concluded, the meeting was adjourned at 10:30 a.m., in the memory of Ray Szeto.

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District

Attachment: Golden Gate Bridge Safety Awareness Zone Plan