12-2007

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 22, 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, June 22, 2007, at 10:00 a.m., President Moylan presiding.

ROLL CALL

Directors Present (14): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGoldrick, Middlebrook, Newhouse Segal, Reilly, Sandoval and Stroeh; Second Vice President Ammiano; President Moylan

Directors Absent (5): Directors Brown, Dufty, McGlashan and Pahre; First Vice President Boro

Staff Present: District Engineer and Acting General Manager Denis J. Mulligan; Auditor-Controller Joseph M. Wire; Secretary of the District Janet S. Tarantino; Attorney Patrick T. Miyaki; 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; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala; Lieutenant Brown

Visitors Present: None

PLEDGE OF ALLEGIANCE

Director Dick Grosboll led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

There was no public comment.

CONSENT CALENDAR

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

AYES (12): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, Middlebrook, Newhouse Segal, Reilly and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (7): Directors Brown, Dufty, McGlashan, McGoldrick, Pahre and Sandoval; First Vice President Boro

 

       
1.

Approve the Minutes of the Following Meetings:

a.  Transportation Committee/Committee of the Whole of June 7, 2007;
b.  Finance-Auditing Committee/Committee of the Whole of June 7, 2007;
c.  Rules, Policy and Industrial Relations Committee/Committee of the Whole of June 8, 2007; and,
d.  Regular Meeting of the Board of Directors of June 8, 2007.

Carried

       
2. Denial of Claims
       
  a.

Claim of Gregory C. Brown

Carried

  b.

Claim of Ralf Medloff

Carried

  c.

Subrogation Claim of Geico General Insurance Company
(Insured: Jason Goldheim)

Carried

  d.

Claim of Sven Zabelin

Carried

  e.

Amended Claim of Frantz Benoit

Carried

  f.

Application for Leave to Present Late Claim of Tracie Brooks

Carried

  g.

Claim of Velvelon Walker

Carried

  h.

Insufficient Claim of Beth Greenberg

Carried

       
GENERAL MANAGER'S REPORT
       
3.

Presentation of Five-Year Service Award to Director Mike Kerns

President Moylan presented a Five-Year Service Award to Director Mike Kerns and expressed congratulations on behalf of the Board of Directors for his service as a member of the Board of Directors. Director Kerns stated that it is a pleasure working with the Board and staff and that he has enjoyed serving on the Board for the last five years.

       
4.

Presentation of Twenty-Five-Year Service Award to Elizabeth (Betti) C. Conder, Benefits Administrator, District Division

President Moylan presented a Twenty-Five-Year Service Award to Elizabeth (Betti) C. Conder, Benefits Administrator, District Division, and expressed his congratulations on behalf of the Board of Directors.

       
5.

Presentation of Certificates of Recognition to Ferry Division Employees: Captain Peter Carrick, Captain Enid Marcus, Deckhand James Garrison, Deckhand William Safina and Deckhand Eugene Tracy

President Moylan presented Certificates of Recognition to Ferry Division Employees: Captain Peter Carrick, Captain Enid Marcus, Deckhand James Garrison, Deckhand William Safina and Deckhand Eugene Tracy, for their performance and outstanding display of professionalism during and following the rescue of a solo fisherman in the Larkspur Channel, and expressed his congratulations on behalf of the Board of Directors.

       
6. Announcements
       
  a.
Mr. Mulligan stated that the Ferry Division will have a press conference today, Friday, June 22, 2007, at 11:00 a.m., in Sausalito, CA, for the preview of the newly refurbished M.S. Marin, which vessel underwent a major rehabilitation of all customer amenities.  Mr. Mulligan extended an invitation to the Directors.
       
  b.
Mr. Mulligan stated that the Finance-Auditing Committee scheduled on Thursday, July 26, 2007, will be held offsite at the Sonoma County Board of Supervisors, in conjunction with Sonoma County Fair.
   
  c.
Mr. Mulligan stated that the District will be participating in the Marin County Fair beginning June 30 through July 4, 2007, by staffing a transit booth.
   
  d.
Mr. Mulligan stated that District staff will be participating in a 4th of July Ferry Ride and extended an invitation to the Directors.
   
  e.
Mr. Mulligan stated that the District will be participating in the upcoming campaign for “Spare the Air” days, which will provide free transit rides for up to four days, courtesy of the Metropolitan Transportation Commission and the Bay Area Air Quality Management District.  On designated “Spare the Air” days, Golden Gate Transit passengers will ride free all day and Golden Gate Ferry passengers will ride free until 1:00 p.m.
       
  f.
Mr. Mulligan stated that on June 7, 2007, one of the high-speed ferries for the Vallejo Baylink Ferry Service (Baylink), operated by Blue & Gold, hit one of the District’s pilings at the San Francisco Ferry Terminal.  He stated that the Baylink ferry damaged the inner berth that is used to load and unload passengers for the Larkspur Ferry service.  As a result, all ferryboats in the District’s fleet are using the second berth to load and unload passengers, which is causing ferry service delays and disruption to necessary public transportation service.  As authorized by the Procurement Manual, the General Manager engaged Moffatt & Nichol to assist with evaluating the damage and the alternatives for repairing the berth.  Staff is proceeding to rectify the situation as quickly as possible, and will be reporting back to the Board of Directors at a later date on the status of the situation.
       
ATTORNEY’S REPORT
       
7.
Attorney Patrick Miyaki reported that all items contained in the Attorney’s Report were informational. 
       

ENGINEER’S REPORT

       
8.
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 JUNE 21, 2007
       
9.

Authorize Rejection of All Bids for Contract No. 2006-B-1, Golden Gate Bridge Seismic Retrofit Phase IIIA North Anchorage Housing/North Pylon

Directors EDDIE/STROEH
Resolution No. 2007-056
authorizes rejection of all bids for Contract No. 2006-B-1, Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing/North Pylon.

Adopted

AYES (13): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGoldrick, Middlebrook, Newhouse Segal, Reilly and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (6): Directors Brown, Dufty, McGlashan, Pahre and Sandoval; First Vice President Boro

     
10.
Approve Actions Relative to the Professional Services Agreement with HDR Engineering, Inc., Regarding Contract No. 2004-B-6, Design and Prepare Bid Documents for Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing/North Pylon

Directors EDDIE/STROEH
Resolution No. 2007-057
approves actions relative to the Professional Services Agreement with HDR Engineering, Inc., regarding Contract No. 2004-B-6, Design and Prepare Bid Documents for Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing/North Pylon:

  a.
Authorize execution of an Amendment, at cost not to exceed $240,000, for revisions to the plans and technical specifications;
  b.
Authorize execution of an Amendment, at a cost not to exceed $250,000, for design support during the advertising period; and,
  c.
Authorize a contract contingency fund in the amount of $50,000;
 

with the understanding that requisite funds are available in the FY 06/07 Bridge Division Capital Budget.

Adopted

AYES (13): Directors Cochran, Eddie, Grosboll, Hernández, Kerns, Martini, McGoldrick, Middlebrook, Newhouse Segal, Reilly and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (6): Directors Brown, Dufty, McGlashan, Pahre and Sandoval; First Vice President Boro

       
11.
Approve Actions Relative to Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, to KCK Builders, Inc.
       
  a.

Authorize Rejection of All Bids for Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements

Directors EDDIE/HERNÁNDEZ
Resolution No. 2007-058
authorizes rejection of all bids for Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements.

Failed

AYES (8): Directors Grosboll, Hernández, McGoldrick, Newhouse Segal Reilly, Sandoval; Second Vice President Ammiano; President Moylan
NOES (6): Directors Cochran, Eddie, Kerns, Martini Middlebrook and Stroeh
ABSENT (5): Directors Brown, Dufty, McGlashan and Pahre; First Vice President Boro

       
  b.
Motion to Reintroduce the Matter of, “Approve Actions Relative to the Award of Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, to KCK Builders, Inc.”
       
    1.

Discussion Ensued

In response to Acting General Manager Denis J. Mulligan’s question on how the Board of Directors wishes the staff to proceed on this matter, Director McGoldrick made a motion to reintroduce the matter and asked the Attorney if this motion is proper.

In response, Attorney Patrick Miyaki, referring to the Rules of the Board (Rules), stated that a matter may not be reintroduced for consideration by the Board or any Committee thereof for a period of six months but that there is an exception to the Rules if the Board, by unanimous consent at a duly noticed meeting with the subject matter properly agendized, authorizes reintroduction of the matter. Mr. Miyaki advised that, because this matter is properly agendized for this meeting, the Board by unanimous consent could reintroduce it.

       
    2.

A motion was made and seconded by Directors MCGOLDRICK/SANDOVAL to approve reintroduction of the matter relative to, “Approve Actions Relative to Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, to KCK Builders, Inc.

Unanimously Carried

       
  c.
Motion to Continue the Matter of, Approve Actions Relative to the Award of Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, to KCK Builders, Inc.,” to the July 13, 2007 Meeting of the Board of Directors
       
    1.

Discussion Ensued

Mr. Mulligan provided a summary of the proceedings of the Thursday, June 21, 2007 meeting of the Building and Operating Committee stating that at the conclusion of the discussion held at this meeting, the Committee recommended that the Board of Directors reject all bids for Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements.

In response to Mr. Mulligan’s comments, the Directors made the following comments and inquiries:

  • Director Hernández made the following comments and inquiries:
    • She commented that, as a member of the Building and Operating Committee, she often independently reviews the contractors and subcontractors prior to the recommendation of award. In her review of the documents for Contract No. 2007-FT-3, she found that one of the subcontractors for the recommended contractor, KCK, is subject to license suspension if its workers’ compensation insurance is not filed by July 11, 2007, and, in addition, the subcontractor has outstanding tax liens. Director Hernández stated that, in her opinion, the parameters that determine that a bidder is responsive and responsible are narrow. She acknowledged that the legal requirements technically have been complied with for this contract, but stated that, due to the concerns regarding the electrical subcontractor, she could not support award of this contract to KCK. In response, Mr. Mulligan stated that the process to evaluate bids includes the careful review of all documents that are submitted, including checking all licenses, to determine whether the lowest bidder is responsive and responsible. Mr. Mulligan also stated that the List of Subcontractors for KCK shows a subcontractor that presently has several allegations and assertions against them; however in review of its history, most of this company’s past liens have been cleared. He noted that the District is in the public sector and operates on a low bid environment and staff has determined that the lowest bidder, KCK, is responsive and responsible. He also noted that the District will monitor compliance with all prevailing wage laws and ensure the quality of work pursuant to the contract plans and specifications.
    • She commended staff for providing all the bid information that she requested and she commended the Board for providing comments regarding the Board’s fiduciary responsibility to protect the District. She stated that it is very apparent that with the candid discussion that the District is interested in maintaining the highest integrity with regard to its contracting opportunities.
  • Director Stroeh inquired as to whether the subcontractor must supply all documentation in regards to the workers’ compensation insurance before award of contract to KCK. In response, Mr. Mulligan stated no contractor is allowed to perform work for the District unless they have the required insurance in place.
  • In response to an inquiry from Director Middlebrook, Mr. Mulligan stated that if the Board approves rejection of all bids for Contract No. 2007 FT 3, staff will prepare plans and specifications and the District will re-advertise for bids. Mr. Mulligan also stated that, in this instance, staff will not propose to redesign the project to reduce the scope of work associated with this contract but will simply re-advertise the same contract. He noted that as a public agency, any company that has requisite licenses and bonding capacities is eligible to bid.
  • Director Newhouse Segal inquired as to what happens if the Board does not reject the bids. In response, Mr. Mulligan stated that presently no action has been taken by the Board regarding the award of contract or rejection of bids. He also stated that staff is seeking direction from the Board in connection with this Contract No. 2007-FT-3.
  • Director Grosboll commented that the members of the Board expressed concerns regarding awarding a contract to KCK, who has a subcontractor with a history of problems. Director Grosboll also stated that, in his opinion, the Board can as a policy matter consider a subcontractor’s history when considering whether to award a contract.
  • Director Eddie made the following comments and inquiries:
    • He inquired as to whether the bidders were informed that the Building and Operating Committee recommended rejection of bids for Contract No. 2007-FT-3. In response, Mr. Mulligan stated that the bidders were informed about the recommendation presented to the Board and staff will also inform bidders about any action taken by the Board at the meeting today.
    • He commented that, given that it is KCK’s responsibility to ensure that all documentation is in place for the project and that District staff will also follow-up to ensure that the subcontractor is compliant, he would support award of a contract to KCK.
    • He expressed his concerns that if the Board rejects all bids for this contract and re-advertise this contract at a later date; the District is at risk for receiving bids that are higher.
  • Director Kerns made the following comments and inquiries:
    • He inquired as to whether KCK would be allowed to substitute the subcontractor in question if its electrical subcontractor was unable to obtain the required insurance. In response, Mr. Mulligan stated that, in accordance with Public Contract Code, if the subcontractor for KCK cannot perform the work because it does not have the requisite license or insurance, KCK must go through an administrative process to substitute a different subcontractor.
    • He inquired as to which company the District will execute a contract with. In response, Mr. Mulligan stated that the District will execute a contract for this project with KCK. He noted that the District does not have a contractual relationship with the subcontractors; however, the District holds all subcontractors accountable to the same standards of the prime contractor for compliance with licensing and labor code requirements.
    • He inquired as to whether staff is satisfied with the bid from KCK. In response, Mr. Mulligan stated that staff has reviewed the bid submitted by KCK, and determined that KCK has the requisite licenses and the requisite ability to do the work associated with this contract.
  • Director Martini made the following comments and inquiries:
    • He inquired as to whether there was an Engineer’s estimate for the project. In response, Mr. Mulligan stated that there was an Engineer’s estimate for the project and that the bids came in higher than the estimated amount.
    • He echoed the same concerns as Director Eddie in that the marketplace will dictate how high the bids will come in if the project is re-advertised. Director Martini expressed his concerns that the bidders will know the amount of funding that is available for this project and will bid accordingly and that it is possible the project will be more costly to the District.
  • President Moylan inquired as to whether the bidders could withdraw submission of their respective bids. In response, Mr. Miyaki stated that the bidders are bound to the bid they submitted for the timeframe established in the bid specifications, which in this case is 90 days. Mr. Mulligan noted that, in accordance with the bid specifications, if the bidder does not honor its bid, the District can proceed against the Bidder’s Bond that was submitted with the bid.
  • Director Cochran stated that the subcontractor’s outstanding tax liens and the workers’ compensation insurance policy issues are not relevant to whether or not KCK can perform the work. Director Cochran also stated that before the work commences, the District will hold KCK responsible for obtaining all necessary paperwork, and furthermore, staff will ensure that all documentation is in place before issuing the Notice to Proceed.
  • Director McGoldrick expressed his concerns regarding the possibility that the District would be held liable for having prior knowledge of workers’ compensation issues if an incident occurred. In response, Mr. Mulligan stated that, for the record, staff checks all Certificates of Insurance to ensure compliance with bid specifications before any work begins.
       
    2.

A motion was made and seconded by Directors SANDOVAL/MCGOLDRICK to continue the matter of “Approve Actions Relative to the Award of Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, to KCK Builders, Inc.,” to the Board of Directors meeting of Friday, July 13, 2007, in order to provide an opportunity for KCK Builders, Inc., to work with its electrical subcontractor to obtain releases for all outstanding tax liens and to file its updated workers’ compensation insurance policy with the California Contractors State License Board.

Carried

       
   
AYES (10): Directors Cochran, Eddie, Kerns, Martini, McGoldrick, Middlebrook, Reilly, Sandoval and Stroeh; President Moylan
NOES (4): Directors Grosboll, Hernández and Newhouse Segal; Second Vice President Ammiano
ABSENT (5): Directors Brown, Dufty, McGlashan and Pahre; First Vice President Boro
       
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 21, 2007
       
12.

Approve Renewal of the Liability Insurance Program

Directors PAHRE/COCHRAN
Resolution No. 2007-058
approves the Liability Insurance Program, as follows:

  a.
Renew the Excess General and Automobile Liability Insurance Program, with American International Specialty Lines Insurance Company (ASLIC/AIG), Lexington, Arch and RSUI Indemnity, for a one-year term, with a liability limit of $100 million each occurrence/annual aggregate in excess of a self-insured retention of $3 million each occurrence, for a total annual premium of $1,298,028, effective July 1, 2007;
  b.
Renew the Excess Workers’ Compensation and Employers’ Liability Insurance Program, with American International Group, for a one-year term, in excess of a self-insured retention of $1 million each accident with a liability limit of $10 million annual aggregate, for an annual premium of $296,932, effective July 1, 2007;
  c.
Renew the General Liability Insurance Program for the remaining portions of the Northwestern Pacific Railroad Right-of-Way under District jurisdiction (several easements south of the Larkspur Ferry Terminal (LFT), an overflow parking lot north of the LFT, a plot north of the California Park Hill Tunnel and a 200-foot section running through the San Rafael Transit Center), with Steadfast Insurance Company, for a one-year term, with a liability limit of $1 million each occurrence/annual aggregate and a deductible of $10,000 per occurrence, for an annual premium of $14,812, effective July 1, 2007;
  d.
Renew the Public Officials’ Liability Insurance Program, with National Union Fire Insurance Company, for a one-year term, with a liability of $5 million each occurrence/annual aggregate and a self-insured retention of $100,000 each claim, for an annual premium of $66,079, excluding terrorism insurance, effective July 1, 2007; and,
  e.
Renew the Public Employees’ Faithful Performance Bond and Comprehensive Dishonesty, Destruction and Disappearance Bond, with Fidelity and Deposit Company of Maryland, for a three-year term, with a liability limit of $1 million for employee dishonesty and computer fraud, subject to a $25,000 deductible and $5,000 deductible respectively, and a liability limit of $500,000 for loss of money and securities at the Golden Gate Bridge Toll Plaza, subject to a $5,000 deductible and $15,000 limit at all other locations with a deductible of $5,000, for an annual premium of $11,320, effective July 1, 2007;
 

with the understanding that requisite funds are available in the FY 07/08 Operating Budgets for the Bridge, Bus, Ferry and District divisions.

Adopted

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

       
13.

Approve Renewal of the Health and Benefit Insurance Plans

Directors PAHRE/MIDDLEBROOK
Resolution No. 2007-059
approves the renewal of the Health and Benefit Plans, for a one-year term, effective July 1, 2007, through June 30, 2008, as follows:

  a.
Group Life, Accidental Death & Dismemberment and Dependent Life Plan with Principal Mutual, in the amount of $124,000;
  b.
Medical Stop-Loss Coverage with Blue Shield of California, with a deductible of $175,000, in the amount of $276,000;
  c.
Kaiser Foundation Health Plan, in the amount of $3,852,000;
  d.
Blue Shield of California PPO Plan, on a self-funded basis, in the estimated amount of $8,360,000;
  e.
Blue Shield of California HMO Plan, in the estimated amount of $1,134,000;
  f.
Caremark Prescription Drug Plan, on a self-funded basis, in the estimated amount of $3,992,000;
  g.
U.S. Behavioral Health Services, in the amount of $59,000;
  h.
Vision Service Plan of California, on a self-funded basis, in the amount of $298,000; and,
  i.
Delta Dental Plan of California, on a self-funded basis, in the amount of $2,233,000;
 

with the understanding that requisite funds in the amount of $20,328,000 are available in the FY 07/08 Operating Budget.

Adopted

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

       
ADJOURNMENT
       
14.
All business having been concluded, the meeting was adjourned at 10:50 a.m., in the memory of Leta Knodell and Josephine Sobel.
       

 

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District