5-2008

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

MARCH 14, 2008

 

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 14, 2008, at 10:00 a.m., President Moylan presiding.

ROLL CALL

Directors Present (18): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGlashan, McGoldrick, Middlebrook, Newhouse Segal, Pahre, Reilly, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan

Directors Absent (1): Director Dufty

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/Ferry Division James P. Swindler; Maintenance Manager and Acting Deputy General Manager/Bus Division Gene Walker; Public Affairs Director Mary C. Currie; Director of Planning Alan R. Zahradnik; Assistant Clerk of the Board Karen B. Engbretson; Executive Assistant to the General Manager Amorette Ko; and, Captain Michael J. Locati

Visitors Present: John Diamante, Threshold Environmental Center; Tilly Chang, San Francisco County Transportation Authority; Norman Rolfe, San Francisco Tomorrow; Andrew Fremier, Metropolitan Transportation Commission; and, Susan Deluxe, Tiburon Resident; Nancy Kirshner-Rodriguez, Mayor Gavin Newsom’s Deputy for Government Affairs

PLEDGE OF ALLEGIANCE

Director Mike Kerns led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

John Diamante stated that in his opinion, there is less traffic congestion in downtown San Francisco than in other neighborhoods in San Francisco, such as Chinatown, 19th Avenue, the Inner Sunset District and the Richmond District. He questioned the premise of the San Francisco County Transportation Authority (SFCTA) that federal grant monies are needed to relieve congestion in downtown San Francisco.

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

 

         
1. Approve the Minutes of the Following Meetings:
         
  a.
Building and Operating Committee/Committee of the Whole of February 21, 2008;
  b.
Finance-Auditing Committee/Committee of the Whole of February 21, 2008;
  c.
Governmental Affairs and Public Information Committee/Committee of the Whole of February 22, 2008; and,
  d.

Regular Meeting of the Board of Directors of February 22, 2008.

Carried

         
2. Denial of Claims
         
  a.

Claim of Christopher Murray

Motion

  b. Subrogation Claim of 21st Century Insurance
(Insured: Ted Samson Salonga, Jr.)

Motion

  c. Insufficient Claim of Vera Shubin

Motion

  d. Insufficient Claim of Catherine Ritchie

Motion

  e. Subrogation Claim of State Farm Insurance
(Insured: Uwe Grahn)

Motion

  f. Claim of B&A Towing

Motion

  g. Amended Claim of Eric Story

Motion

         
3.
Ratify Actions by the Auditor-Controller
Resolution No. 2008-018
(Finance-Auditing Committee, February 21, 2008) ratifies actions taken by the Auditor-Controller, as follows:
         
  a. Ratify commitments and/or expenditures for the period January 1, 2008, through January 31, 2008, totaling $85,811.00;
         
  b. Ratify investments made by the Auditor-Controller during the period January 15, 2008, through February 11, 2008, as follows:
         
Security

Purchase

Date

Maturity

Date

Original

Cost

Percent

Yield

Bank of America Bank Accep.
01/15/08
03/13/08
1,228,729.28
4.18
Bank of America Bank Accep.
01/15/08
03/19/08
1,079,972.98
4.18
Bank of America Bank Accep.
01/15/08
03/24/08
3,154,705.75
4.18
Bank of America Bank Accep.
01/15/08
05/07/08
1,681,885.17
4.00
FHLB Disc Note
01/15/08
01/22/08
8,326,356.75
4.10
FHLMC Disc Note
01/22/08
02/07/08
8,332,689.24
3.05
Barclay US Funding, LLC Commercial Paper
02/04/08
05/05/08
2,034,065.52
3.10
Rabobank Nederland NY Certificate of Deposit
02/07/08
05/05/08
7,248,403.81
3.00
Svenska Handlesbank, Inc. Commercial Paper
02/07/08
03/28/08
1,093,333.50
3.07
         
  c. c. Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between February 11, 2008, and March 17, 2008, as well as the investment of all other funds not required to cover expenditures that may become available; and,
         
  d.

Accept the Investment Report for January 2008 prepared by PFM Asset Management, LLC.

Adopted

         
GENERAL MANAGER'S REPORT
         
4.

Presentation of Employee of the Month Award for March 2008 to Alfredo “Big Al” Velasquez, Bridge Painter, Bridge Division

President Moylan presented the Employee of the Month Award for March 2008 to Alfredo “Big Al” Velasquez, Bridge Painter, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

         
ATTORNEY’S REPORT
         
5.
Attorney David Miller reported that all items contained in the Attorney’s Report were informational.
         
ENGINEER’S REPORT
         
6.

No written or oral reports were 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.

         
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF MARCH 13, 2008
         
7.

Authorize Filing Grant Applications with the Federal Transit Administration for FY 07/08 Section 5307, Section 5309 and Flex Funds Capital Assistance

Directors STROEH/
Resolution No. 2008-019
authorizes the General Manager or her designee to file Section 5307 Federal Urbanized Area Formula Program funds, Section 5309 Federal Capital Program, and Flex Funds grant applications with the Federal Transit Administration for FY 07/08 federal grant funds to support various capital projects.

Adopted

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

         
8.
Approve Resolution Regarding Future Implementation of Congestion Pricing at the Golden Gate Bridge

         
  a. Staff Presentation
         
 

General Manager Celia Kupersmith presented staff’s recommendation, providing a summary of the proposed resolution that had been presented at the March 13, 2008, meeting of the Finance-Auditing Committee, which resolution states, among other things, that: (1) the District has the legal authority to implement congestion pricing; and, (2) the District is committed to implementing a congestion pricing component as part of the upcoming toll increase. She stated that the requirements of the Urban Partnership Program (UPP) grant require that tolling authority for congestion pricing on the Golden Gate Bridge or Doyle Drive must be in place no later than March 31, 2008, and that a congestion pricing toll be implemented by September 2009. She stated that the proposed resolution meets the requirements of the UPP grant, as confirmed by the U.S. Department of Transportation (DOT).

Ms. Kupersmith stated that following a lengthy discussion on this matter at the March 13th Finance-Auditing Committee meeting, the proposed resolution, as presented, was approved unanimously by the Finance-Auditing Committee, which meeting was declared a Committee of the Whole. However, during the discussion, several Board members expressed opposition, on the record, to using congestion tolling proceeds for the reconstruction of Doyle Drive, at the expense of using the proceeds for other congestion relief projects, such as public transportation. She noted that a DOT official has communicated to the District that the DOT “defers to the locality on the use of proceeds raised by variable tolling,” which she interprets to mean that the locality that controls the toll decides how to spend the proceeds from the toll.

         
  b. Public Comment
         
 

Andrew Fremier reiterated comments he had made at the March 13th Finance-Auditing Committee meeting, and urged the Board of Directors to approve the resolution as approved by the Committee.

Norman Rolfe reiterated comments he had made at the March 13th Finance-Auditing Committee meeting, expressing general opposition to the Presidio Parkway option for the reconstruction of Doyle Drive. He also noted that, in his opinion, implementing congestion pricing in the Golden Gate Corridor would not meaningfully reduce congestion in downtown San Francisco, since studies he has resurrected from the past indicate that only 6 percent of daily traffic to downtown San Francisco enters from Doyle Drive.

John Diamante expressed his opposition to the reconstruction of Doyle Drive, naming the project the “Presidio Freeway.” He noted that the project would cost approximately three times the cost of simply retrofitting and rehabilitating the existing structure. He also expressed his support for the proposed resolution.

Susan Deluxe expressed her dissatisfaction with the proposal to implement a congestion pricing toll at the Golden Gate Bridge, because in her opinion, the Golden Gate Bridge is the least congested traffic spot in the Bay Area. She further opined that the Doyle Drive reconstruction project should be paid for by all California taxpayers, not just by the local users.

Nancy Kirshner-Rodriguez, Mayor Gavin Newsom’s Deputy for Government Affairs, stated that Mayor Newsom was pleased with the outcome of the unanimous vote at the District’s March 13th Finance-Auditing Committee meeting, approving the proposed resolution, and urged the Board to approve the resolution as approved by the Committee.

         
  c.
Amendment to the Proposed Resolution Regarding Future Implementation of Congestion Pricing at the Golden Gate Bridge
         
 

First Vice President Boro recommended that the Board consider approving an amendment to the proposed resolution, amending the wording in Paragraph Number 7 of the resolution to delete the phrase, “within the Golden Gate Corridor, including Doyle Drive,” and replacing it with the phrase, “provided by the District.” He explained that he is proposing the amendment due to the fact that it is important to separate the congestion pricing toll revenues from the funding shortfall for the Doyle Drive project. He further stated that DOT Secretary Mary Peters, in her February 13, 2008, stated that the DOT’s intent was that the proceeds from the congestion pricing toll be used to “meaningfully reduce congestion on Doyle Drive,” rather than raise revenue for the Doyle Drive project.

         
  d. Discussion Relative to the Amendment to the Proposed Resolution
         
 

The following Directors expressed support for the amendment to the proposed resolution offered by First Vice President Boro:

•  Director McGlashan
•  Director Stroeh
•  Director Kerns
•  Director Middlebrook
•  Director Sanders
•  Director Pahre

The following Directors expressed opposition to the amendment to the proposed resolution offered by First Vice President Boro:

•  Director McGoldrick
•  Director Ammiano
•  Director Reilly
•  Director Newhouse Segal
•  Director Grosboll
•  Director Hernández

Director Pahre suggested that the amendment to Paragraph Number 7 being proposed by First Vice President Boro, be slightly changed to retain the phrase, “within the Golden Gate Corridor,” but to delete the phrase, “including Doyle Drive,” as well as the phrase, “provided by the District.” She inquired of the Attorney for the District as to whether her suggested change would affect the meaning of the resolution. In response, Attorney Miller explained that in Paragraph Number 2, the Golden Gate Corridor is defined as consisting of, “the Golden Gate Bridge and its Highway 101 approaches, including Doyle Drive.” He explained that the performance metric outlined in Paragraph Number 3 refers to the Golden Gate Corridor, as defined in Paragraph Number 2, and this metric is of vital importance to the DOT as a way to determine the effectiveness of congestion pricing at the Golden Gate Bridge. Mr. Miller further stated that by deleting the phrase, “including Doyle Drive,” from Paragraph Number 7, it would not change the meaning of the resolution, because other sections of the resolution continue to define the Golden Gate Corridor as including Doyle Drive.

         
  e.
Motion to Continue Action on the Proposed Resolution Regarding Future Implementation of Congestion Pricing at the Golden Gate Bridge
         
 

The following motion was made and seconded by Directors McGOLDRICK/NEWHOUSE SEGAL to continue the matter of, Approve a Resolution Regarding Future Implementation of Congestion Pricing at the Golden Gate Bridge, to the March 28, 2008, meeting of the Board of Directors.

Failed

AYES (8): Directors Grosboll, Hernández, McGoldrick, Newhouse Segal, Reilly and Sandoval; Second Vice President Ammiano; President Moylan
NOES (10): Directors Brown, Cochran, Eddie, Kerns, McGlashan, Middlebrook, Pahre, Sanders and Stroeh; First Vice President Boro
ABSENT (1): Director Dufty

         
  f.
Motion to Approve Amendment to the Proposed Resolution
         
 

The following motion was made and seconded by Directors BORO/McGLASHAN to amend Paragraph Number 7 of the proposed resolution to read as follows:


“7. The net proceeds of the variable toll that the Board of Directors ultimately approves will be used to fund congestion relief projects or services provided by the District.”

AYES (10): Directors Brown, Cochran, Eddie, Kerns, McGlashan, Middlebrook, Pahre, Sanders and Stroeh; First Vice President Boro
NOES (8): Directors Grosboll, Hernández, McGoldrick, Newhouse Segal, Reilly, Sandoval; Second Vice President Ammiano; President Moylan
ABSENT (1): Director Dufty

Carried

         
  g.
Action by the Board of Directors to Approve the Proposed Resolution, as Amended
         
 

Directors McGLASHAN/STROEH
Resolution No. 2008-020
approves the attached resolution, as amended, regarding future implementation of congestion pricing at the Golden Gate Bridge.

Adopted

AYES (10): Directors Brown, Cochran, Eddie, Kerns, McGlashan, Middlebrook, Pahre, Sanders and Stroeh; First Vice President Boro
NOES (8): Directors Grosboll, Hernández, McGoldrick, Newhouse Segal, Reilly, Sandoval; Second Vice President Ammiano; President Moylan
ABSENT (1): Director Dufty

         
9.

Approve Granting Authority to the Auditor-Controller, the Plan Administrator for the Golden Gate Bridge, Highway and Transportation District Supplemental Retirement Plan, to Adopt Certain Amendments to the Plan

Directors STROHE/KERNS
Resolution No. 2008-021
approves granting authority to the Auditor-Controller, the Plan Administrator for the Golden Gate Bridge, Highway and Transportation District Supplemental Retirement Plan (Plan), after consultation with the Attorney for the District, to adopt and execute amendments to the Plan that are limited to areas that:

  1. Facilitate administration of the Plan;
  2. Ensure that the Plan operates consistent with the intent of the Board of Directors in adopting the Plan or as necessary to comply with the changes in the governing laws; and,
  3. Secure favorable determination letters from the Internal Revenue Service as may be necessary.

Adopted

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

         
ADJOURNMENT
         
10.
All business having been concluded, the meeting was adjourned at 11:40 a.m., in the memory of Harlen Soeten, Richard Brandt, Vilas Roy Gerber, Margaret Rimmer and Walter Carpenter.
         

 

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District

 

Attachment:   Proposed Resolution, As Amended, Regarding Future Implementation of Congestion Pricing at the Golden Gate Bridge