Regular Meeting of the Board of Directors of June 22, 2007.

Carried

Denial of Claims

a.  Subrogation Claim of Allstate Insurance Company
     (Insured: Julia Lancer)

Carried

Ratify investments made by the Auditor-Controller during the period May 15, 2007, through June 11, 2007, as follows;

MATURITY

DATE

ORIGINAL

COST

PERCENT

YIELD

Accept the Investment Report for May 2007 prepared by PFM Asset Management LLC.

Adopted

SPECIAL ORDER OF BUSINESS

[Note: The following item was taken out of Agenda order.]

Staff Presentation

General Manager Celia Kupersmith provided a brief introduction to initiate the discussion regarding ferry emission standards for the District’s new high-speed passenger ferry. Ms. Kupersmith stated that this item is being presented at the request of Director Sandoval, whose proposed resolution on ferry emission standards has been co-sponsored by Directors Ammiano, Dufty, Grosboll, Hernández, McGoldrick and Reilly. Ms. Kupersmith stated that the Board of Directors will be hearing testimony from several experts in the field of ferry emissions, as well as the District’s consultant Martin J. Robbins of Fast Ferry Management, Inc., who is providing project management and construction oversight for the District’s purchase of a new high-speed passenger ferry. She described the packet of information relative to this item, which includes the resolution prepared by Director Sandoval, that was distributed to the members of the Board of Directors, copies of which packet are available in the Office of the District Secretary.

Deputy General Manager/Ferry Division James Swindler summarized the staff report, which provided technical details regarding ferry propulsion systems and engine reduction technologies, and outlined four options for consideration in regards to the purchase of a new high-speed passenger ferry. The staff report included two attachments: 1) Attachment A, Engine Selection and Emissions Analysis Report; and, 2) Attachment B, SCR Project – M/V Solano. Mr. Swindler provided general background information regarding the District’s need for a new high-speed passenger ferry, due to increasing ridership. He also described current and proposed ferry emissions regulations set forth by the United States Environmental Protection Agency (EPA) and the State of California Air Resources Board (CARB). He also explained the difference between Tier 1, Tier 2 and the proposed Tier 3 and Tier 4, ferry engines.

Mr. Swindler introduced Martin J. Robbins, noting that Mr. Robbins was instrumental in assisting the City of Vallejo with its experimental clean ferry project, the M.V. Solano. Mr. Robbins described the technical details associated with Selective Catalytic Reduction (SCR) after-treatment engine system. Mr. Robbins stated that SCR is a proven technology in terms of its chemistry, and has been used for several decades in stationary uses, such as power plants. He noted that to date, SCR technology has had minimal use in extreme mobile environments, such as ferryboats, with only two high-speed passenger ferries in the world with SCR systems, the M.S. Prinzen in Norway and the M.V. Solano operated by the City of Vallejo. He noted that the M.S. Prinzen operated the equipment for a very short time only. He briefly described his experience with the M.V. Solano, in which the practical use of SCR technology in a marine environment proved to be problematic. He highlighted photographs of the SCR equipment used in the M.V. Solano, which showed the extreme deterioration of the SCR system and discussed possible accelerated wear and damage to the vessel’s engines. Mr. Robbins stated that it was important that the District understand the risks involved with using SCR technology in a ferry vessel in terms of durability, reliability, increased engine wear and tear, increased maintenance and operating costs and increased fuel consumption. He also noted that SCR applications reduce nitrogen oxide (NOx) emissions but have only minimal impact on particulate matter (PM) emissions.

Mr. Swindler stated that the San Francisco Bay Area Water Transit Authority (WTA) presently has a contract with Nichols Bros. Boat Builders to construct two medium-speed 149-passenger ferry vessels with Tier 2 engines and after-treatment SCR equipment. He noted that after the WTA’s clean ferries are in operation, District staff will be able to learn more about the use of SCR technology in a marine environment from the WTA’s experience. Mr. Swindler described the differences between the four options (Options A, B, C, D and D-1) for the District’s new high-speed passenger ferry, comparing the emission reduction, cost increase, fuel consumption, vessel size and weight and available engine technology.

Mr. Swindler introduced Bill Mossey of Pacific Power Products, the predominant supplier of marine engines and exhaust after-treatment systems for the high-speed ferry industry. Mr. Mossey stated that his company is currently under contract to provide SCR equipment to the WTA and that his company supplied the SCR equipment for the M.V. Solano. He also provided one other example in which SCR equipment was installed on a ferry in the United States, for the Staten Island Ferry Emission Control Demonstration Project in New York, a three-year emission-control demonstration project that was completed in the summer of 2006. Mr. Mossey discussed his experiences and the challenges of using SCR technology for high-speed ferry vessels. He noted that with limited real-world marine applications of SCR technology worldwide, it is difficult to find ferry operators with the type of experience that would benefit other high-speed vessel operators. He further noted that SCR systems are on the cutting edge of technology, and that SCR equipment manufacturers do not provide product warranties for use in marine applications. He cautioned that if a high-speed ferry operator were to invest in the developing SCR technology, the cost impact could be high and system may end up actually increasing emissions if it proves to be unreliable. He stated his belief that the SCR equipment works well in static environments and may work well eventually in mobile applications.

Guest Speakers

Director Sandoval introduced the guest speakers that he had invited, and thanked his colleagues on the Board of Directors for providing an opportunity to learn about the creative solutions available for clean ferry emissions.

Steve Castleberry, San Francisco Bay Area Water Transit Authority (WTA)

Mr. Castleberry noted that the District’s General Manager had invited him to provide background information regarding WTA’s activities related to ferry emissions. He described two studies that the WTA had undertaken in 2002 as part of its Implementation and Operations Plan submitted to the California State Legislature: 1) an Environmental Impact Report (EIR), including an air quality analysis, that examined the impacts of Bay Area-wide ferry expansion; and, 2) an investigation of new technologies to improve ferry emissions. Mr. Castleberry discussed the results of the EIR, which found that if the full WTA system were implemented and that if ferry emissions do not improve beyond the Tier 2 standards, by 2025 Bay Area air quality would be worse with the ferry expansion than without it. However, the EIR determined that by reducing ferry emissions to 85% of Tier 2 standards, this significant air quality impact would be eliminated. Therefore, this 85% emission reduction standard was codified in the WTA’s enabling legislation and became a legal mandate for the WTA ferry expansion.

Mr. Castleberry further discussed the results of the ferry emission study, noting that the WTA studied nearly 40 different technologies in an effort to determine which type of system would best reach the 85% emission reduction standard. The WTA found that using the technology available in 2002, the most economical and viable emission reduction system would be a diesel engine installed with an SCR exhaust after-treatment system. Mr. Castleberry stated that the WTA has ordered two ferryboats using this technology that are guaranteed to meet the 85% emission reduction standard, and that these ferryboats will be delivered to the WTA in the fall of 2008. Mr. Castleberry stated that the application of this standard to the WTA vessels is different from the proposed application to a District new ferry because the WTA ferryboats are smaller and slower than the proposed District ferry.

Daniel Donohoue, California Air Resources Board (CARB)

Mr. Donohoue provided information regarding: 1) the regulatory development by the CARB; 2) health impacts of ferry emissions; and, 3) SCR technology. He reported that the CARB is in the process of developing air quality regulations for harbor craft and ferries, which regulations would require all new ferries to install Tier 2 engines with additional exhaust after-treatment systems that would control PM and/or NOx. Mr. Donohoue stated that the CARB is currently studying the available technology, as well as the costs and impacts of the various exhaust after-treatment systems, with a final determination on the proposed regulations anticipated in September 2007.

Mr. Donohoue discussed the health impacts of ferry emissions, noting that ferries operating on the San Francisco Bay produce about 40% of the emissions associated with harbor craft. He stated that the CARB is presently undertaking a health risk assessment for the Port of Oakland and the West Oakland community to study the onshore health impacts of harbor craft emissions. He noted that due to the amount of ferry traffic on the San Francisco Bay, the magnitude of ferry emissions approaches that of ocean-going vessels traveling to Bay Area ports. Mr. Donohoue further stated that given the fact that ferry operations contribute a significant amount of diesel particulate matter onshore to port communities, there will be additional pressure to make ferry emissions as clean as possible.

Mr. Donohoue further described the technology associated with SCR exhaust after-treatment systems. He stated that the CARB is currently dealing with this technology in a wide variety of categories, including on-road trucks and off-road trucks. He emphasized that although there are costs and challenges relative to this emerging emission-reduction technology, the significant health benefits of such technology will create a greater impetus nationwide to move forward on both PM and NOx after-treatment systems.

Michael Murphy, Bay Area Air Quality Management District (BAAQMD)

Mr. Murphy stated that the BAAQMD is pleased to have collaborated with the District over the years to reduce emissions from all of the District’s operations, including its ferries. He described various projects, such as the repowering of the District’s ferry vessels, which have been funded by the BAAQMD’s Carl Moyer grant program, and stated that the BAAQMD will welcome additional grant requests for similar projects in the future. He also stated that the BAAQMD has also been working with District staff regarding the deployment of diesel particulate filters to control emissions from all the Golden Gate Transit buses. He further described the work being done by the Bay Area Zero-Emission Bus Working Group, of which the District is a member, which is investigating fuel cell zero-emission buses, the next generation of transit technology.

Mr. Murphy confirmed the results of the WTA’s ferry emission study, for which the BAAQMD was asked to do an independent analysis. The BAAQMD concluded that there would not be enough reduction in vehicle trips to offset the amount of emissions that would result from expanded ferry service. The BAAQMD also analyzed the potential health risk from diesel PM emissions, particularly to residents in the vicinity of the San Francisco Ferry Building. In conclusion, Mr. Murphy stated that in order to reduce the health impacts locally, it is essential to control emissions regionally. He further stated that it is the goal of the BAAQMD to require that all new ferries launched on the San Francisco Bay, particularly those that service the San Francisco Ferry Building, be ultra-clean. He urged the District to build its new high-speed passenger ferry to meet the WTA standard, with a Tier 2 engine and SCR after-treatment equipment.

Russell Long, Bluewater Network/Friends of the Earth

Mr. Long urged the Board of Directors to support the resolution proposed by Director Sandoval, requiring strict air emissions controls for the District’s new high-speed passenger ferry. He further advocated that the District conduct an EIR before putting a new ferry into service on the San Francisco Bay, since studies have shown that ferries are more polluting than automobiles on a per-passenger basis. He noted that it is important that the Bay Area retain its progressive leadership in terms of reducing impacts to air quality. He discussed some of the known health effects due to direct exposure to diesel emissions from harbor craft. He also noted that there are always challenges associated with first-generation technology, such as SCR after-treatment equipment, and that the technology will inevitably improve with the second and third generation of SCR technology.

Tom Escher, Red & White Fleet

Mr. Escher provided background information regarding the Red & White Fleet, which has operated ferries on the San Francisco Bay since 1892. He discussed why the Red & White Fleet has started using B20 bio-fuel in its ferries, noting that his company has not experienced any engine or mechanical problems from using bio-fuel. He described a recent repowering of one of the Red & White Fleet’s ferry vessels, noting that as a commercial ferry operator, one of their chief concerns is that environmental requirements are getting in front of proven technology. He emphasized that the District has many options to consider in the power package for its new high-speed passenger ferry.

Public Comment

Linda Weiner

Ms. Weiner spoke on behalf of the Bay Area Clean Air Task Force (Task Force), which includes approximately 15 public health, environmental, transportation and community organizations. She expressed the Task Force’s concerns about the environmental standards for the procurement of a new high-speed passenger ferry, due to the high amount of diesel pollution produced by ferries. She discussed the negative health impacts from PM and NOx, which impacts have prompted both the CARB and the EPA to propose higher standards for ferry emissions. She stated that her organization urges the District to build its new high-speed passenger ferry to meet the WTA standard, with a Tier 2 engine and SCR after-treatment equipment.

Jerry Grace requested general information regarding the District’s procurement of the new high-speed passenger ferry. In response, Celia Kupersmith described the District’s plans to purchase a new high-speed ferry, and briefly explained the technical details regarding ferry emissions.

Discussion by the Board

• Director Grosboll made the following comments and inquiries:

  • He inquired as to which option staff recommended, and Ms. Kupersmith emphasized that at this time staff is only presenting facts about ferry emissions standards for the new high-speed passenger ferry, but is not recommending one particular option over another.
  • He expressed his opinion that the District should follow the lead of the WTA, and build its new high-speed passenger ferry with a Tier 2 engine and SCR after-treatment equipment.

• Director McGlashan made the following comments and inquiries:

  • He expressed his support for the resolution proposed by Director Sandoval.
  • He pointed out that the resolution does not dictate the type of emission-reduction technology to use on the new high-speed passenger ferry, and that SCR after-treatment equipment is only one of many emission-reduction options that the District could consider for its new high-speed passenger ferry.
  • He described the County of Marin’s experience using B-20 bio-fuel in its fleet of diesel buses, noting that the use of bio-fuel has significantly reduced the amount of PM pollution from these buses.
  • He inquired as to whether staff has analyzed how bio-fuel might work in high-speed passenger ferries. In response, Mr. Swindler stated that staff is continuing to investigate how high-horsepower ferry engines will operate with bio-fuel.
  • He inquired regarding the possible causes for the failure of the SCR equipment used in the M.V. Solano. In response, Mr. Robbins stated that although they are still awaiting results of the forensic analysis, some of the possible causes for the failure of the equipment include overheating, vibration or salt water contamination.

• Director Ammiano made the following comments and inquiries:

  • He described similar challenges regarding emission-reduction systems experienced by the San Francisco Municipal Railway.
  • He inquired as to whether PM and NOx filters, such as those used on transit buses, are available for use in high-speed passenger ferries. In response, Mr. Swindler stated that at this time, PM and NOx filters are not available for marine applications.
  • He suggested that Golden Gate Ferry passengers be surveyed as to whether they prefer service reliability over clean emissions.
  • He noted that the health impacts of ferry emissions on ferry crews should also be considered.
  • He commended Director Sandoval for prompting this important discussion.

• Director Middlebrook made the following comments and inquiries:

  • She inquired as to whether or not the SCR equipment used in the M.V. Solano was actually reducing emissions. In response, Mr. Robbins stated that since there was no real-time emission-monitoring equipment installed on the ferry, it would not be possible to make that determination. In addition, pending the results of the forensic analysis, it is unclear at what point in time the equipment failed to reduce emissions.
  • She commented that the new high-speed passenger ferry will have a useful life of 20-25 years, and that the District could replace the engines or install new emission-reduction equipment in the future as new technology emerges.
  • She stated that the Board of Directors should expediently complete its decision-making process regarding the new high-speed passenger ferry, because of its responsibility to its customer base, its fiduciary obligation and its environmental concerns, which are all equally important.

• Director Stroeh made the following comments and inquiries:

  • He inquired as to whether the new high-speed passenger ferry could be constructed in such a way that future installation of emission-reduction equipment could be facilitated. In response, Mr. Swindler stated that because the SCR equipment takes up so much space, the vessel would need to be built with a large empty compartment in order to accommodate future installation of such equipment.
  • He inquired as to whether the use of bio-fuel would affect the speed of the vessel. In response, Mr. Swindler stated that it would depend on the blend of bio-fuel used in the vessel. He noted that if 100% bio-fuel is used, it would significantly affect the speed of the vessel.
  • He inquired as to whether the increased weight of the vessel with SCR equipment installed would increase the amount of wake wash produced by the ferry. In response, Mr. Swindler stated that a heavier vessel would definitely increase the amount of wake wash, but that the exact type of increase would be difficult to predict before the vessel is fully designed.
  • He inquired as to whether or not grant funds would cover the increased cost if SCR equipment is installed on the new high-speed passenger ferry. In response, Ms. Kupersmith stated that the District could obtain grant funds to pay for most of the additional capital cost of the SCR equipment, but that on-going operational costs would be District-funded.
  • He requested that this matter be brought back to the Board of Directors for further discussion.

• Director Kerns stated that while environmental requirements may be getting in front of proven technology, market demands can drive improvements in technology. He noted that the District has an opportunity to create market demands if it chooses to move in the direction of clean ferry emissions.

• Director Pahre stated that an important part of the District’s investigation of new emission-reduction technology would be the installation of real-time emission-monitoring equipment on the ferry. She also expressed her support for the use of bio-fuels on the new high-speed passenger ferry.

• Director Sandoval made the following comments and inquiries:

  • He stated that in his opinion, the bio-fuels option is not the best possible solution to reduce ferry emissions, and that the District should also consider other alternative-energy methods, such as wind and solar power.
  • He suggested that the District could reduce the costs of a new high-speed passenger ferry with clean ferry emissions by crafting the Request for Proposals (RFP) in such a way that would encourage more competitive bidding, by issuing the RFP for a regular ferry vessel, then entering into a partnership with the successful bidder to install the emission-control after-treatment system.
  • He directed staff to research the results of two SCR demonstration projects, the Norwegian ferry, the M.S. Prinsen, as well as the Staten Island Ferry Emission Control Demonstration Project, which project was jointly undertaken by the Port Authority of New York and New Jersey and the New York Department of Transportation.
  • He requested that staff further research the possibility of incorporating the warranties for the engine and after-treatment system into the capital costs for the new high-speed passenger ferry, thus providing greater opportunity to obtain federal grant funds for those costs.
  • He requested that the matter of clean emissions for the new high-speed passenger ferry be placed on the agenda for a future meeting of the Board of Directors, at the discretion of the President, to continue the discussion and reach consensus on which option the District should pursue.

• Director Martini made the following comments and inquiries:

  • He noted that ferries appear to be the most polluting form of public transportation on a per-passenger basis, compared with buses and automobiles, prompting the question of whether or not the District should continue to operate ferries on San Francisco Bay.
  • He cautioned the Board against spending a lot of money on unproven technology, noting that the District could wait until the development of second- or third-generation ferry engine after-treatment technology before undertaking such a project.
  • He expressed his support to continue the discussion regarding clean emissions for the new high-speed passenger ferry.

• Director Boro made the following comments and inquiries:

  • He noted the organizational differences between the WTA, a start-up agency, and the District, which has been operating ferries for more than 30 years and serves approximately two million passengers per year.
  • He emphasized that the District has a responsibility to provide reliable ferry service to those two million passengers per year, and that whichever option the District pursues, it must be predictable and consistent.
  • He expressed his support for a clean emission high-speed passenger ferry, but stated that the District’s responsibility to its patrons is equally important as its responsibility to the environment.
  • He noted that the experience with the M.V. Solano proves that there needs to be a way to measure the effectiveness of emission-control devices if they are installed on a high-speed ferry vessel.
  • He expressed his support for continuing the discussion, and also provided instructions to staff, as follows:
    1. He directed staff to gather more information on pending CARB air quality regulations for harbor craft and ferries.
    2. He directed staff to study exactly what went wrong with the SCR equipment installed on the M.V. Solano.
    3. He directed staff to investigate the Staten Island Ferry Emission Control Demonstration Project in New York.
    4. He also directed staff to research ferry emission-control efforts by the City of Seattle, Washington, whose mayor, Greg Nickels, spearheaded the effort by cities throughout the United States to sign the Kyoto Protocol.

• Director McGoldrick concurred with Director Martini that the District should consider the possibility of divesting its ferry operations, in light of the fact that ferries are so polluting and require an extremely high subsidy. He recommended that a cost/benefit analysis be undertaken with regards to ferry reliability and pollution concerns, as compared with other modes of public transit.

• Director Newhouse Segal commended Director Sandoval for giving the Board the opportunity to discuss this important issue, and expressed her support for pursuing Option B, to build the new high-speed passenger ferry to meet the WTA standard. She noted that the District has the opportunity to be the driving factor that causes ferry emission technology to move forward.

• President Moylan suggested that the Board of Directors continue the discussion regarding ferry emissions standards for the new high-speed passenger ferry to a future meeting, within the next two to four months, in order to give staff sufficient time to undertake additional research on the matter.

Motion to Continue the Matter of, Discussion and Possible Action Regarding Ferry Emissions Standards for New High-Speed Passenger Ferry Procurement

Directors SANDOVAL/BROWN moved to continue the matter of “Discussion and Possible Action Regarding Ferry Emissions Standards for New High-Speed Passenger Ferry Procurement,” to a future meeting of the Building and Operating Committee, in order to provide an opportunity for staff to undertake additional research on the matter.

AYES (18): Directors Brown, Cochran, Dufty, Eddie, Grosboll, Hernández, Kerns, Martini, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (1): Director Reilly

Carried

Report by the General Manager

Celia Kupersmith reported that on June 7, 2007, one of the high-speed ferries for the Vallejo Baylink Ferry Service (Baylink), operated by the Blue and Gold Fleet, hit one of the District’s pilings at the Stephan C. Leonoudakis San Francisco Ferry Terminal. Ms. Kupersmith stated that in accordance with the District policy, she had authorized the issuance of an emergency contract for repairs to the damaged berth. She further stated that the District informed the City of Vallejo and its ferry operator, the Blue and Gold Fleet, that the District will request full reimbursement of the costs associated with this repair project, estimated at approximately $200,000. Ms. Kupersmith recommended that the Board of Directors ratify the action regarding Contract No. 2008-FT-2, San Francisco Ferry Terminal Emergency Berth Repairs.

Comments from Board Members

Director McGoldrick stated that he would recuse himself from the vote on the action, Ratify Emergency Action of the General Manager Relative to Contract No. 2008 FT-2, San Francisco Ferry Terminal Emergency Berth Repairs, due to a potential conflict of interest.

Action by the Board

Directors AMMIANO/BORO
Resolution No. 2007-061 ratifies the action of the General Manager to award Contract No. 2008-FT-2, San Francisco Ferry Terminal Emergency Berth Repairs, to C.S. Marine Constructors, Inc., in an amount not-to-exceed $200,000, to perform emergency berth repairs at the District’s Stephan C. Leonoudakis San Francisco Ferry Terminal as a result of one of the high-speed ferries for the Vallejo Baylink Ferry Service (Baylink), operated by the Blue and Gold Fleet, hitting one of the District’s pilings at the Stephan C. Leonoudakis San Francisco Ferry Terminal on June 7, 2007; with the understanding that requisite funds are available in the FY 07/08 Ferry Transit Division Operating Budget, until such time that the District receives reimbursement from Blue and Gold Fleet.

Adopted

AYES (13): Directors Cochran, Eddie, Hernández, Kerns, Martini, McGlashan, Middlebrook, Newhouse Segal, Pahre and Sandoval; Second Vice President Ammiano; First Vice President Boro; President Moylan
NOES (0): None
ABSENT (5): Directors Brown, Dufty, Grosboll, Reilly and Stroeh
ABSTAIN (1): Director McGoldrick

ENGINEER’S REPORT

Report by District Engineer

District Engineer Denis Mulligan reported that at the June 22, 2007, meeting of the Board of Directors, the Board voted 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 its July 13, 2007, meeting. The matter was continued in order to provide KCK Builders, Inc., (KCK) the apparent low bidder, an opportunity to work with their electrical subcontractor to provide the following documentation: 1) an updated workers compensation insurance certificate; and, 2) release of outstanding tax liens that were presented in correspondence from the Northern California Electrical Construction Industry (NCECI). Mr. Mulligan stated that prior to the June 22, 2007, meeting of the Board of Directors, KCK provided an updated workers compensation insurance certificate, as well as documentation showing that all of the tax liens associated with KCK’s listed subcontractor were cleared. He further stated that it is the opinion of the District Engineer and the Attorney for the District that KCK is a responsible bidder and that their bid is responsive.

Public Comment

Wendell Phillips expressed concerns on behalf of NCECI that in light of KCK’s electrical subcontractor’s record regarding tax liens and the payment of unemployment insurance taxes, his organization recommends that the Board of Directors reject the bid of KCD and re-bid of Contract No. 2007-FT-3.

Discussion by the Board

• Director Hernández made the following statements and inquiries:

  • She requested clarification from staff regarding the assertions presented by Mr. Phillips under public comment. In response, Mr. Mulligan stated that staff had researched the matter and has written documentation from the State of California Contractors’ Licensing Board showing that the majority of the tax liens referenced in NCECI’s June 12, 2007, letter were levied against a similarly named, but different electrical subcontractor that is not the listed subcontractor of KCK. Mr. Mulligan noted that KCK’s electrical subcontractor is named Celestial Technologies, Inc., which is a different company than Celestial Electric Technologies, Inc., the company referenced in NCECI’s June 12, 2007, letter and Mr. Phillips’ testimony.
  • She commended staff for their thorough preparation with respect to the concerns brought forward by NCECI.
  • She commended the members of the Building and Operating Committee and the Board of Directors for their thoughtful and insightful discussions regarding this matter.
  • She noted that the Committee and Board discussions regarding Contract No. 2007-FT-3 brought to light the need for a policy discussion by the Board of Directors with regard to the District’s responsibility to identify what constitutes a responsible bidder. She further stated that she is committed to working with staff, attorneys for the District and Committee chairs in order to establish new standards for the District’s bidding process, such as prequalification of subcontractors, in accordance with contracting laws.
    

Action by the Board

Directors EDDIE/STROEH
Resolution No. 2007-062 approves actions relative to the award of Contract No. 2007-FT-3, Larkspur Ferry Terminal Administration Building Improvements, as follows:

a.  Reject the bid protest submitted by Northern California Electrical Construction Industry, dated June 12, 2007;
b.  Authorize award of Contract No. 2007-FT-3 to KCK Builders, Inc., San Rafael, CA, in the amount of $412,000;
c.  Authorize a contingency fund in the amount $41,200, equal to 10% of the contract award; and,
d.  Authorize a budget increase in the FY 07/08 Ferry Transit Division Capital Budget in the amount of $218,000.

Adopted

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

Approve Actions Relative to the Provision of Additional Golden Gate Transit Bus and Ferry Services to be Operated Over the Labor Day Weekend

Directors BORO/MIDDLEBROOK
Resolution No. 2007-063 approves the following actions relative to the provision of additional bus and ferry transit services to be operated over the 2007 Labor Day Weekend:

with the understanding that the cost of these additional services would be fully recovered by the combination of new fare revenue and subsidies available from the Metropolitan Transportation Commission and the Sausalito Arts Festival.

Adopted

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

Authorize Execution of an Agreement for Inter-County Paratransit Services Between the Golden Gate Bridge, Highway and Transportation District and the Marin County Transit District

Directors BORO/STROEH
Resolution No. 2007-064 approves a 12-month Agreement with the Marin County Transit District for provision of inter-county paratransit service, effective retroactively from July 1, 2007 through June 30, 2008.

Adopted

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

Authorize Award of Contract No. 2008-BT-1, Subscription Bus Service, to CUSA FL, LLC dba Franciscan Lines, A Coach America Company

Directors BORO/STROEH
Resolution No. 2007-065 authorizes award of Contract No. 2008-BT-1, Subscription Bus Service, to CUSA FL, LLC, dba Franciscan Lines, a Coach America Company, San Francisco, CA, at a net cost to the District in the estimated amount of $79,600 for the first year of the contract of a three-year term, with two successive one-year options exercisable by the General Manager or her designee at a cost set by the conditions set forth in the contract, commencing August 1, 2007, with the understanding that requisite funds (100% District) are available in the FY 07/08 Bus Transit Division Operating Budget, and that requisite funds will be included in the Bus Transit Division Operating Budget for the subsequent fiscal years.

Adopted

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

Authorize Execution of a Master Agreement with the State of California, Department of Transportation for State-Funded Transit Projects

Directors STROEH/MARTINI
Resolution No. 2007-066 authorizes execution of a Master Agreement by and between the Golden Gate Bridge, Highway and Transportation District (District) and the State of California, Department of Transportation, for state-funded transit projects; and, authorizes the President of the Board of Directors to execute said Agreement on behalf of the District.

Adopted

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

Authorize Execution of an Agreement with the County of Marin for Grant Funds Related to Improved Signage at the San Rafael Transit Center

Directors STROEH/MARTINI
Resolution No. 2007-067 authorizes execution of an Agreement by and between the Golden Gate Bridge, Highway and Transportation District (District) and the County of Marin for Nonmotorized Transportation Pilot Program (NTPP) funds related to improved signage at the San Rafael Transit Center; and authorizes the General Manager to execute said Agreement on behalf of the District.

Adopted

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

Authorize Execution of an Amendment to the Professional Services Agreement with SunGard Bi Tech, Inc., Relative to Request for Proposals (RFP) No. 2003 D-1, Financial Management System and Other Related Items, to Provide Host Servers Used for IFAS and Spear Technology Applications

Directors STROEH/MARTINI
Resolution No. 2007-068 authorizes execution of an amendment to the Professional Services Agreement with SunGard Bi-Tech, Inc., Chico, CA, relative to Request for Proposals No. 2003 D-1, Financial Management System and Other Related Items, in the amount of $312,320, including an annual contract amount of $278,400, a one-time set-up charge of $20,000 and an annual 5 percent contingency of $13,920, to provide host servers at their centralized facilities located in Chico used for the Integrated Fund Accounting System (IFAS) and Spear technology applications relative to the District’s Financial Management Information System; with the understanding that requisite funds (100% District) are available in the FY 07/08 District Division Operating Budget and that requisite funds will be included in the District Division Operating Budget for the subsequent fiscal years.

Adopted

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

Approve Amendments to the Human Resources Guide Relative to the Four Deputy General Manager Positions

Directors PAHRE/AMMIANO
Resolution No. 2007-069 approves the following provisions relative to the four Deputy General Manager positions (Bridge, Bus, Ferry, and Administration/Development) which, along with the District officers whose employment conditions are addressed separately by the Board of Directors by means of employment contracts, constitute the executive management staff of the District:

Create a performance excellence reward system for the Deputy General Manager positions that allows the General Manager to provide incentive compensation of up to 5 percent of their annual base salary, per year, to each Deputy General Manager based on the Deputy General Manager’s performance excellence, such reviews to take place in the fall of each year, separate and apart from general salary adjustments made for all non-represented staff which includes Deputy General Managers, with the understanding that these funds would be paid on a bi-weekly basis over the next 12 months and available for contribution to deferred compensation, and with the further understanding that the incentive compensation would be considered part of the employee’s annual salary for purposes of PERS calculations, but would not be included in any future year wage increase calculations;

Create an executive management tier within the District’s retiree benefits program in which Deputy General Managers are eligible for full retirement benefits, including survivor benefits, based on the following vesting schedule:

Amend the Human Resources Guide accordingly.

Adopted

Approve a Separate Policy Regarding Leave Under the California Family Rights Act

Directors PAHRE/KERNS
Resolution No. 2007-070 approves a separate policy relative to the California Family Rights Act, as outlined in Attachment A, and amends the Human Resources Guide accordingly.

Adopted

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

Comments from Board Members

• Director Middlebrook expressed her admiration for Director Martini, noting that his intelligent insights have enriched the Board’s decision-making process and that his poetic contributions have added to the Board’s enjoyment and congeniality.
• Directors Pahre and Ammiano recited poems they had written in Director Martini’s honor.
• Director Martini thanked his fellow Board members for their kind comments, and expressed how much he appreciated serving on the District Board of Directors with such a remarkable group of men and women. He then recited a poem to mark the occasion of his departure from the Board.
  

Action by the Board

Directors MIDDLEBROOK/BORO
Resolution No. 2007-071 authorizes a Resolution of Appreciation for former Director Michael F. Martini, in recognition of his dedicated service to the Golden Gate Bridge, Highway and Transportation District Board of Directors.

Unanimously Adopted

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