Finance-Auditing Committee of August 21, 2008;

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

Carried

Insufficient Subrogation Claim of Mercury Insurance Company (Insured: Alan Rappoport)

Carried

Carried

Carried

Carried

Carried

Carried

Carried

Carried

Carried

Carried

Accept the Investment Report for July 2008 prepared by PFM.

Adopted

Presentation of Twenty-Year Service Award to Wilfred Marlin Owens, Bus Operator, Bus Division

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

Report of the General Manager

Celia Kupersmith stated that at the September 11, 2008, meeting of the Building and Operating Committee a discussion had been held relative to the procurement of the new high-speed passenger ferry. She stated that subsequent to the posting of the September 12, 2008, Board of Directors agenda, the District became aware of an opportunity to investigate and potentially enter into negotiations with Washington State Ferries to pursue the acquisition of two used ferryboats for the District’s use, in lieu of the District purchasing a new high-speed passenger ferry. She requested that the Board of Directors consider adding an item to the Agenda to direct staff to enter into negotiations with Washington State Ferries.

Report of the Attorney

Attorney David Miller explained, for the record, that the Brown Act allows adding an item to the Agenda if the item arose subsequent to the posting of the Agenda and if there is an immediate need for action. Mr. Miller stated that Deputy General Manager/Ferry Division James Swindler returned from a trip this week to the state of Washington, where he had met with staff from Washington State Ferries and inspected the vessels, which are no longer in operation. He further stated that immediate action is required, due to the fact that there is a pending proposal for RFP No. 2008-FT-1, New High-Speed Passenger Ferry, and that it is necessary to explore this alternative to the purchase of a new vessel during the pendency of the proposal. He advised the Board of Directors to accept the General Manager’s recommendation to add the item to the Agenda.

Action by the Board of Directors

Directors BROWN/COCHRAN moved and seconded that the matter of, Authorize the General Manager to Enter into Negotiations with Washington State Ferries for the Acquisition of two Previously Constructed Vessels as a Possible Alternative to the Purchase of a New High-Speed Ferry, be added to the agenda of the Board of Directors for consideration at its meeting of September 12, 2008, as permitted by the Brown Act, as this matter arose subsequent to the posting of the agenda and requires immediate attention.

Carried

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

District Engineer Denis Mulligan reported that all items contained in the Engineer’s Report were informational.

At the meeting, Mr. Mulligan noted that an Environmental Timeline relative to the Golden Gate Bridge physical suicide deterrent project was attached to his written report.

Discussion by the Board of Directors

• Director Grosboll inquired as to the length of time necessary to complete the environmental studies and preliminary design for the moveable median barrier. In response, Mr. Mulligan stated that the study and design phase of the project will take approximately 20 months, with construction and implementation of the moveable median barrier to be completed one year later.

• Director Newhouse Segal requested that staff prepare an Environmental Timeline for the moveable median barrier project, similar to the one prepared for the physical suicide deterrent project. In response, Ms. Kupersmith stated that staff would prepare such timeline for the Board of Directors.
  

Action by the Board of Directors

Directors EDDIE/KERNS
Resolution No. 2008-078 approves the following actions relative to Request for Proposals No. 2008-B-5, Environmental Studies and Preliminary Design for a Moveable Median Barrier on the Golden Gate Bridge:

with the understanding that requisite funds are available in the Bridge Division Capital Budget.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Authorize the General Manager to Enter into Negotiations with Washington State Ferries for the Acquisition of Two Previously Constructed Vessels as a Possible Alternative to the Purchase of a New High-Speed Ferry

Directors EDDIE/COCHRAN
Resolution No. 2008-079 authorizes the General Manager to enter into negotiations with Washington State Ferries for the acquisition of two previously constructed vessels, as a possible alternative to the purchase of a new high-speed ferry.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Discussion by the Board of Directors

• Director Brown made the following inquiries:
  • He inquired as to whether the terms of the Professional Services Agreements would be for one year. In response, Mr. Wire stated that the terms would be for three years, with two successive one-year options.
  • He inquired as to the name of the District’s current Insurance Advisor, and Mr. Wire stated that those services are currently provided by Marsh Risk and Insurance Services, Inc.
  • He inquired as to whether the compensation for Insurance Advisor and Brokerage Services would be paid by a flat fee or by commission. In response, Mr. Wire stated that the compensation for the two Professional Services Agreements relative to RFP No. 2009-D-1 would be on a flat fee basis, as the District prohibits its Insurance Advisor from earning commissions or contingent commissions from the District.
    

Action by the Board of Directors

Directors STROEH/EDDIE

Resolution No. 2008-080 approves the following actions relative to Request for Proposals No. 2009-D-1, Insurance Advisor and Brokerage Services:

1. Authorize execution of a Professional Services Agreement with ABD/Wells Fargo Insurance Services, Redwood City, CA, in an amount not to exceed $238,700, for the Liability Insurance Program, effective November 8, 2008, for a three-year term, with two successive one-year options, subject to the approval of the General Manager or her designee; and,
2. Authorize execution of a Professional Services Agreement with Alliant Insurance Services, Inc., San Francisco, CA, in an amount not to exceed $257,446, for the Marine Insurance and the Property Insurance Programs, including a claims contingency of $20,000 for Marine claims adjusting services, effective November 8, 2008, for a three-year term, with two successive one-year options, subject to the approval of the General Manager or her designee;

with the understanding that requisite funds are available in the FY 08/09 Operating Budgets for RFP No. 2009-D-1, and with the further understanding that requisite funds for the remaining years of the project will be included in the Operating Budgets for future fiscal years.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Receive the Updated Five- and Ten-Year Financial Projection, As Revised

Directors STROEH/KERNS
Resolution No. 2008-081 receives the updated Five- and Ten-Year Financial Projection, as revised.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Receive the OPEB Retirement Investment Trust Board’s FY 07/08 Annual Report

Directors STROEH/KERNS
Resolution No. 2008-082 receives the OPEB (Other Post-Employment Benefits) Retirement Investment Trust Board’s FY 07/08 Annual Report.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Discussion by the Board of Directors

• Director Hernandez reiterated comments she had made regarding this matter at the September 12, 2008, meeting of the Rules, Policy and Industrial Relations Committee, expressing her thanks to staff for commencing the e-mail portion of the District’s comprehensive Record Retention Program. She also noted that certain public documents, such as certified payroll records, contract documents and correspondence are subject to very clearly defined statutes that determine retention periods, but that e-mail communications may not be subject to such clearly defined rules. She cautioned staff to be mindful that sometimes e-mail communications can play an important part in processing civil actions for workers who may have worked on District-procured projects. She requested the assistance of the Attorney and the District Secretary to consider the importance of e-mail communications in such situations in the context of the Record Retention Program for E-Mail Communications.
  

Action by the Board

Directors PAHRE/STROEH
Resolution No. 2008-083 approves adoption of the Record Retention Program for E-mail Communications, effective January 15, 2009, as described in the Attachment; and, authorizes the General Manager or her designee to administer the Record Retention Program for E-mail Communications in accordance with the retention periods outlined in the Attachment; with the understanding that the General Manager, in consultation with the Attorney, may revise such retention periods and authorize destruction of records to comport with applicable law and the Secretary of State’s Local Government Records Management Guidelines, as they may be amended from time to time.

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Approve an Amendment to CalPERS Pension Plan to Allow Employees to Purchase Service Credit on a Pretax Basis Relative to a Change in the Title of the Membership Coverage Group

Directors PAHRE/STROEH
Resolution No. 2008-084 approves an amendment to the California Public Employees Retirement System (CalPERS) Pension Plan to allow employees to purchase service credit on a pretax basis, relative to a change in the title of the membership coverage group from “70002” to “All Miscellaneous Coverage Groups.”

Adopted

AYES (15): Directors Brown, Cochran, Eddie, Grosboll, Hernández, Kerns, McGoldrick, Newhouse Segal, Pahre, Reilly, Sanders, Sobel and Stroeh; Second Vice President Ammiano; President Moylan
NOES (0): None
ABSENT (4): Directors Dufty, McGlashan and Sandoval; First Vice President Boro

Attorney’s Report

Attorney David Miller, at the request of President Moylan, stated that the Board of Directors would convene in closed session to consider a possible initiation of litigation, listed on the Agenda as Item No. 6.B.1.

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, to discuss the matter listed above. With respect to the pending litigation matter, Mr. Miller reported that no action would be taken on the matter.