11-2008

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 13, 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, June 13, 2008, at 10:00 a.m., President Moylan presiding.

ROLL CALL

Directors Present (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan

Directors Absent (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

[On this date, there was one vacancy on the Board of Directors.]

Staff Present: 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 and Acting General Manager Kary H. Witt; Deputy General Manager/Bus Division Teri W. Mantony; Deputy General Manager/Ferry Division James P. Swindler; Human Resources Director Harvey Pye; DBE Programs Administrator Gail Jackson; Assistant Clerk of the Board Karen B. Engbretson; Executive Assistant to the General Manager Amorette Ko

Visitors Present: George Topor, Corte Madera resident

PLEDGE OF ALLEGIANCE

Director Joanne Sanders led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

George Topor, Corte Madera resident, provided the following suggestions that he believes would improve safety on the Golden Gate Bridge sidewalks for both bicyclists and pedestrians: (1) require all bicyclists to use the west sidewalk of the Golden Gate Bridge when it is open, leaving the east sidewalk for pedestrian use only; (2) require all bicyclists to walk their bikes through a “no bike-riding zone” on the east sidewalk, extending from the Toll Plaza to the South Tower; and, (3) institute bicycle speed enforcement checkpoints and have the California Highway Patrol issue tickets to speeding bicyclists.

CONSENT CALENDAR


1.	Request to Sever Item from Consent Calendar Secretary of the District Janet Tarantino requested, and the President concurred, that a portion of Item No. 5.A.2., “Approve the Minutes of the Finance-Auditing Committee meeting of May 22, 2008,” be severed from the Consent Calendar, as these minutes were not ready for approval.

2.	Motion to Approve the Remaining Consent Calendar Items: Directors STROEH/EDDIE moved approval of the remaining Consent Calendar items. All items were approved by the following vote of the Board of Directors: AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

3.	Approve the Minutes of the Following Meetings:

	1.	Building and Operating Committee/Committee of the Whole of May 22, 2008;
	2.	Finance-Auditing Committee/Committee of the Whole of May 8, 2008;
	3.	Regular Meetings of the Board of Directors of May 9, 2008, and May 23, 2008. Carried

4.	Denial of Claims

	1.	Claim of Cheryl Craig Carried
	2.	Claim of Joanne Meyer Carried
	3.	Application for Leave to Present Late Claim and Claim of Glenn Lacoste Carried
	4.	Claim of Karen Mitchell Carried
	5.	Claim of Adan Berardino Peralta Carried
	6.	Claim of Jeffrey Facter Carried

5.	Ratify Actions by the Auditor-Controller Resolution No. 2008-048 (Finance-Auditing Committee, May 22, 2008) ratifies actions taken by the Auditor-Controller, as follows:

	1.	Ratify commitments and/or expenditures for the period April 1, 2008, through April 30, 2008, totaling $250,706.00;

	2.	Ratify investments made by the Auditor-Controller during the period April 15, 2008, through May 12, 2008, as follows;

SECURITY	PURCHASE DATE	MATURITY DATE	ORIGINAL COST	PERCENT YIELD
Dexia Credit Local NY, Certificate of Deposit	04/21/08	07/17/08	2,999,633.48	2.88
HSBC USA, INC., Commercial Paper	04/21/08	07/21/08	3,042,841.75	2.88
FHLB TAP Bonds	04/30/08	03/09/12	4,995,150.00	3.53
BNP Paribas (NY) Certificate of Deposit	05/05/08	05/30/08	4,300,000.00	2.53
BNP Paribas Finance, Inc., Commercial Paper	05/05/08	08/04/08	1,405,521.47	2.67
UBS Finance Delaware Commercial Paper	05/05/08	08/04/08	6,951,163.33	2.78
Calyon North America, Inc., Commercial Paper	05/07/08	08/05/08	6,979,776.56	2.59
FHLB Disc Note	05/07/08	06/04/08	4,992,358.33	1.97


	3.	Authorize the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between May 13, 2008, and June 16, 2008, and all other funds not required to cover expenditures that may become available; and,

	4.	Accept the Investment Report for April 2008 prepared by PFM Asset Management, LLC. Adopted

GENERAL MANAGER'S REPORT

6.	Presentation of Employee of the Month Award for June 2008 to Terry Roberson, Ironworker Pusher, Bridge Division President Moylan presented the Employee of the Month Award for June 2008 to Terry Roberson, Ironworker Pusher, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

ATTORNEY’S REPORT

7.	Attorney David Miller reported that all items contained in the Attorney’s Report were informational. Mr. Miller also reported that a closed session would be held just prior to the conclusion of the meeting to discuss a matter of potential litigation.

ENGINEER’S REPORT

8.	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. At the meeting, Mr. Mulligan reported that on June 6, 2008, the District issued RFP No. 2008-B-5, Environmental Studies and Preliminary Design for a Moveable Median Barrier on the Golden Gate Bridge.

REPORT OF THE TRANSPORTATION COMMITTEE MEETING OF JUNE 12, 2008

9.	Authorize Competitive Negotiation Process for RFP No. 2009-BT-1, 13 Forty-Five Foot Inter-City Configuration Coaches

	a.	Discussion by the Board

	Director Hernández expressed her support for pursuing the competitive negotiation process, whenever possible, for various types of District procurements because of the limitations involved in the sealed, low-bid process, as well as the fact that in her opinion, the competitive negotiation process includes more protections for workers. Director Sanders made the following comments and inquiries: She inquired as to how the criteria other than price would be weighted in the competitive negotiation process. In response, Ms. Mantony confirmed that in addition to price, the proposals for RFP No. 2009-BT-1 will also be evaluated on criteria, such as service guarantees, warranties, reliability of the equipment, history of the manufacturer in the transit industry and whether or not the coaches meet the Buy America requirement. She requested that staff provide her information regarding the relative weights of the criteria to be used in evaluating RFP No. 2009-BT-1, as soon as they are determined.

	b.	Action by the Board

	Directors PAHRE/BORO Resolution No. 2008-049 approves a finding that a sealed, low-bid process does not adequately meet the District’s needs in regards to a bus procurement; and, authorizes a competitive negotiation process for Request for Proposals No. 2009-BT-1, 13 Forty-Five Foot Inter-City Configuration Coaches, for the purchase of up to 30 forty-five foot inter-city configuration coaches, in accordance with California Public Contract Code Sections 20216-20217; with the understanding that requisite funds (80.5% Federal/19.5% District) are available in the FY 08/09 Bus Transit Division Capital Budget. Adopted AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

[At the request of President Moylan, the items from the Rules, Policy and Industrial Relations Committee were acted upon prior to the items from the Finance-Auditing Committee.]

REPORT OF THE RULES, POLICY AND INDUSTRIAL RELATIONS COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 13, 2008

10.	Approve an Amendment to the Vacation Policy in the Human Resources Guide Relative to District-Directed Restrictions on the Use of Accrued Vacation Directors PAHRE/STROEH Resolution No. 2008-050 approves an amendment to the Vacation Policy in the Human Resources Guide, under the section entitled, “General Rules Governing the Use of Vacation,” subsection, “Accrual,” by deleting the following verbiage: “Written approval from the appropriate Department Head, Deputy General Manager, or District Officer, and the General Manager must be obtained before any vacation may accrue over 40 days. The General Manager may authorize additional vacation accrual of five days, up to 45-day accrual cap. The request must detail a bonafide business reason for the request and the time period the employee commits to using the excess accrual;” and, replacing it with the following verbiage: “The General Manager may authorize payment for 80 hours of accrued vacation in lieu of vacation taken when the following occurs: a. The employee is at the maximum accrual balance or is nearing the maximum; and, b. The employee cannot be permitted to be away from work for a bona fide business reason; and, c. The payment is made solely at the discretion of the General Manager.” Adopted AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

11.	Approve FY 08/09 Annual Disadvantaged Business Enterprise Goal Directors PAHRE/STROEH Resolution No. 2008-051 approves the following actions relative to the FY 08/09 annual overall Disadvantaged Business Enterprise (DBE) goal, as follows:
	a.	Establish a 4.5 percent proposed goal applicable to $32,123,000 in contracts assisted by the Federal Transit Administration (FTA), in accordance with federal regulations governing the establishment of DBE goals, and authorize the General Manager to publish notice of the proposed goals in accordance with federal regulations;
	b.	Authorize the General Manager to formally adopt the FTA goal if no public comments are received that require further consideration or modifications of the proposed goal by the Board; and,
	c.	Authorize staff to submit the District's annual overall DBE goal for federally-assisted contracting opportunities to FTA by August 1, 2008. Adopted

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

REPORT OF THE FINANCE-AUDITING COMMITTEE MEETING OF MAY 22, 2008

12.	Approve Adoption of the FY 07/08 Operating and Capital Budgets Directors STROEH/KERNS Resolution No. 2008-052 approves adoption of the FY 08/09 Operating and Capital Budgets, including the following related actions:
	a.	District workplans, goals and objectives, as contained in the Budget document;
	b.	Negotiated 3% pay increase for the Coalition represented employees and 3% pay increase for non-represented employees, effective July 1, 2007;
	c.	Changes to the Reserve Structure; and,
	d.	Changes to the Table of Organization. Adopted

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

REPORT OF THE FINANCE-AUDITING COMMITTEE MEETING OF JUNE 12, 2008

13.	Approve Submission of a Grant Application to the National Science Foundation for Informal Science Education Funds Relative to the Golden Gate Bridge Directors STROEH/KERNS Resolution No. 2008-053 approves submission of a grant application to the National Science Foundation for Informal Science Education funds relative to the Golden Gate Bridge. Adopted AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

14.	Approve Renewal of the Liability Insurance Program Directors STROEH/EDDIE Resolution No. 2008-054 approves the Liability Insurance Program, as follows:
	a.	Renew the Excess General and Automobile Liability Insurance Program, with National Union Fire Insurance Company, Lexington, Arch, RSUI Indemnity and AXIS Surplus, for a one-year term, with a liability limit of $125 million each occurrence/annual aggregate in excess of a self-insured retention of $3 million each occurrence, for an annual premium of $1,141,368, effective July 1, 2008;
	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 and with a liability limit of $25 million annual aggregate, for an annual premium of $267,020, effective July 1, 2008;
	c.	Renew the General Liability Insurance Program for the 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 $13,354, effective July 1, 2008;
	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 $77,320, effective July 1, 2008; 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 one-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, 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 a liability limit of $15,000 for loss of money and securities at all other locations other than the Golden Gate Bridge, subject to a deductible of $5,000, for an annual premium of $11,320, effective July 1, 2008;

	with the understanding that requisite funds are available in the FY 08/09 Operating Budgets for the Bridge, Bus, Ferry and District divisions. Adopted AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

15.	Approve Renewal of the Health and Benefit Insurance Plans Directors STROEH/KERNS Resolution No. 2008-055 approves the renewal of the Health and Benefit Plans, for a one-year term, effective July 1, 2008, through June 30, 2009, as follows:
	a.	Medical Stop-Loss Coverage with Blue Shield of California, including a deductible of $175,000, in the amount of $334,000;
	b.	Kaiser Foundation Health Plan, in the amount of $4,626,000;
	c.	Blue Shield of California PPO Plan, on a self-funded basis, at an estimated cost of $9,975,000;
	d.	Blue Shield of California HMO Plan, in the estimated amount of $1,410,000;
	e.	Caremark Prescription Drug Plan, on a self-funded basis, at an estimated cost of $4,422,000;
	f.	OptumHealth Behavioral Solutions Plan, in the amount of $32,000;
	g.	Vision Service Plan of California, on a self-funded basis, in the amount of $251,000;
	h.	Delta Dental Plan of California, on a self-funded basis, in the amount of $2,857,000; and,
	i.	Group Life, Accidental Death & Dismemberment and Dependent Life Plan with Minnesota Life, in the amount of $104,000.

	with the understanding that requisite funds in the amount of $24,011,000 are available in the FY 08/09 Operating Budget. Adopted AYES (13): Directors Brown, Eddie, Grosboll, Hernández, Kerns, Newhouse Segal, Pahre, Sanders, Sandoval and Stroeh; Second Vice President Ammiano; First Vice President Boro; President Moylan NOES (0): None ABSENT (5): Director Cochran, Dufty, McGlashan, McGoldrick and Reilly

CLOSED SESSION

16.	a.	Attorney’s Report Attorney David Miller, at the request of President Moylan, stated that the Board of Directors would convene in closed session to discuss a matter of potential litigation with staff and Legal Counsel regarding the California Coastal Conservancy’s (Conservancy) Commemorative License Plate Program (License Plate Program. After closed session, President Moylan called the meeting to order in open session with a quorum present. Attorney Miller reported that the Board of Directors met in closed session, as permitted by the Brown Act, and received a report from Acting General Manager Kary Witt on a matter regarding the Conservancy’s License Plate Program, that several weeks ago, was envisioned to be a matter of potential litigation. Mr. Miller reported on an Agreement, in concept, having been reached between the Conservancy and the District regarding the use of an image of the Golden Gate Bridge for the Conservancy’s License Plate Program. He reported that Mr. Witt made a presentation to the Board on the discussions that took place between the Conservancy and the District, as well as the action taken by the Conservancy Board relative to the License Plate Program. He further stated that relying on the action taken by the Conservancy Board, it is proposed that this Board approve, in concept, an Agreement with the Conservancy, whereby the image of the Golden Gate Bridge for the License Plate Program will be permitted by the District. Separately, the Conservancy will provide funding for the District, in the short term, of approximately $1 million for improvements in the East Visitor’s Area, with the expectation that over a period of several years, additional funding will be forthcoming for additional visitor amenities. Finally, it is proposed that staff and Counsel be directed to formalize the conceptual Agreement in a Memorandum of Understanding, to be brought back to the Board for consideration at a later date.

	b.	Approve, in Concept, an Agreement between the California Coastal Conservancy and the District Relative to the Commemorative License Plate Program Directors BORO/KERNS Resolution No. 2008-055 approves, in concept, an Agreement between the California Coastal Conservancy (Conservancy) and the Golden Gate Bridge, Highway and Transportation District whereby the image of the Golden Gate Bridge for the Commemorative License Plate Program will be permitted by the District, and separately, the Conservancy will provide funding for the District, in the short term, of approximately $1 million for improvements in the East Visitor’s Area, with the expectation that over a period of several years, additional funding will be forthcoming for additional visitor amenities; with the understanding that staff and Counsel is directed to formalize the conceptual agreement in a Memorandum of Understanding, to be brought back to the Board for consideration at a later date. Adopted

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

ADJOURNMENT

17.	All business having been concluded, the meeting was adjourned at 10:40 p.m., in the memory of Sheila Mary Sullivan Peterson, Dorothy King and Al Burgin.

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District