10-2009

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 26, 2009

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 26, 2009, at 10:00 a.m., President Boro presiding.

ROLL CALL

Directors Present (16): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro

Directors Absent (3): Directors Brown and Sanders; First Vice President Reilly

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/Bus Division Teri W. Mantony; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development ZW Johnson; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: Sandy Osgood, Senior Vice President, Wells Fargo Insurance Services; Sandra Farris, San Francisco resident;

PLEDGE OF ALLEGIANCE

Director Bevan Dufty led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

Sandra Farris offered a suggestion to ease the District’s budget shortfall by charging tourists a fee for the privilege of walking across the Golden Gate Bridge. In response, President Boro asked that Deputy General Manager/Bridge Division Kary H. Witt provide Ms. Farris a status report on this matter.

CONSENT CALENDAR


1.	Directors STROEH/KERNS moved approval of the Consent Calendar. All items were approved by the following vote of the Board of Directors: AYES (14): Directors Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sobel and Stroeh; Second Vice President Eddie; President Boro NOES (0): None ABSENT (5): Directors Brown, Campos, Sanders and Snyder; First Vice President Reilly

2.	Approve the Minutes of the Following Meeting:

	a.	Building and Operating Committee/Committee of the Whole Meeting of May 21, 2009;
	b.	Finance-Auditing Committee/Committee of the Whole Meeting of May 21, 2009;
	c.	Governmental Affairs and Public Information Committee/Committee of the Whole Meeting of May 22, 2009; and,
	d.	Regular Meeting of the Board of Directors of May 22, 2009.

3.	Denial of Claims

	a.	Claim of Martha Maricle Carried
	b.	Claim of Kin Hung Choy Carried

GENERAL MANAGER'S REPORT

4.	Announcement Ms. Kupersmith informed the Board that the District will participate in the Marin County Fair (Fair), and that this year’s theme is “Cool Green Fun.” Ms. Kupersmith stated that Golden Gate Transit (GGT) will operate its Zero Emission Bus (ZEB) as a free shuttle to access the Fair that will operate from 11:15 a.m. to 10:10 p.m. Ms. Kupersmith described the District’s partnership with AC Transit in a ZEB demonstration program designed to accelerate development of zero emission fuel cell technology in public transit bus fleets. She also stated that the District will have a booth at the Fair to provide the public with information on how we are working to reduce emissions.

5.	Presentation of Retirement Gift to Elizabeth Conder, Benefits Coordinator, District Division President Boro presented a retirement gift to Elizabeth Conder, Benefits Coordinator, District Division, for twenty-six years and ten months of service, and expressed his best wishes for a long and happy retirement on behalf of the Board of Directors.

6.	Presentation of Thirty-Five Year Service Award to Robert “Bob” Aganowski, Bridge Painter, Bridge Division President Boro presented a Thirty-Five Year Service Award to Robert “Bob” Aganowski, Bridge Painter, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

7.	Presentation of Twenty-Five Year Service Award to Manuel Duque, Apprentice Bridge Painter, Bridge Division President Boro presented a Twenty-Five Year Service Award to Manuel Duque, Apprentice Bridge Painter, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

8.	Presentation of Twenty-Five Year Service Award to Kerry R. Davis, Ironworker, Bridge Division President Boro presented a Twenty-Five Year Service Award to Kerry R. Davis, Ironworker, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

9.	Presentation of Twenty-Five Year Service Award to Kenneth A. Hopper, Ironworker, Bridge Division President Boro presented a Twenty-Five Year Service Award to Kenneth A. Hopper, Ironworker, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

10.	Presentation of Twenty-Five Year Service Award to Eduardo Reyes, Ironworker, Bridge Division President Boro presented a Twenty-Five Year Service Award to Eduardo Reyes, Ironworker, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

11.	Presentation of Twenty-Five Year Service Award to Dennis G. Dellarocca, Paint Superintendent, Bridge Division President Boro presented a Twenty-Five Year Service Award to Dennis G. Dellarocca, Paint Superintendent, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

12.	Presentation of Twenty Year Service Award to Dennis A. Silva, Bridge Officer, Bridge Division President Boro presented a Twenty-Year Service Award to Dennis A. Silva, Bridge Officer, Bridge Division, and expressed his congratulations on behalf of the Board of Directors.

13.	Presentation of Employee of the Month Award for June 2009 to Joe Leong, Systems Administrator – PC Support, District Division President Boro presented the Employee of the Month Award for June 2009 to Joe Leong, Systems Administrator – PC Support, District Division, and expressed his congratulations on behalf of the Board of Directors.

ATTORNEY’S REPORT

14.	Attorney David Miller reported that all items contained in the Attorney’s Report were informational. Mr. Miller reported that a closed session would be held just prior to the conclusion of the meeting to discuss a matter of pending litigation, Red and White Ferries, Inc., vs. Golden Gate Bridge, Highway and Transportation District, listed on the Agenda as Item No. 6.B.1. Mr. Miller stated that the closed session item regarding labor negotiations will be continued to the Board of Directors meeting on July 10, 2009.

ENGINEER’S REPORT

15.	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 25, 2009

16.	Authorize Execution of the First Amendment to the Professional Services Agreement with Fast Ferry Management, Inc., Relative to Request for Proposals No. 2007-FT-8, Consultant to Provide Project Management and Construction Oversight for New High-Speed Ferry Vessels Directors EDDIE/COCHRAN Resolution No. 2009-056 authorizes execution of the First Amendment to the Professional Services Agreement (Agreement) with Fast Ferry Management, Inc., Silverdale, WA, relative to Request for Proposals No. 2007-FT-8, Consultant to Provide Project Management and Construction Oversight for New High-Speed Ferry Vessels, in the amount of $71,753.00, for a modification of the scope of services related to the Agreement. Adopted AYES (16): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro NOES (0): None ABSENT (3): Directors Brown and Sanders; First Vice President Reilly

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 25, 2009

17.	Approve Adoption of the FY 09/10 Operating and Capital Budgets

	A.	Discussion by the Board President Boro commended Auditor-Controller Joseph Wire and his staff for their excellent work on the staff report and expressed his congratulations on behalf of the Board of Directors.

	B.	Action by the Board

	Directors STROEH/KERNS Resolution No. 2009-057 approves adoption of the FY 09/10 Operating and Capital Budgets, including: Operating Budget revenues of $161.3 million; Operating Budget expenditures of $170.1 million; Capital Budget revenues of $37.7 million; Capital Budget expenditures of $43 million; and, District Reserves are budgeted to be used to fund the FY 09/10 Operating Budget shortfall of $8.8 million and District share of Capital Budget of $5.3 million; as well as related actions, as follows: District goals, projects and accomplishments; Changes to the Reserve Structure; and, Table of Organization. Adopted AYES (16): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro NOES (0): None ABSENT (3): Directors Brown and Sanders; First Vice President Reilly

18.	Approve Renewal of the Liability Insurance Program Directors STROEH/SOBEL Resolution No. 2009-058 approves renewal of the Liability Insurance Program, as follows:
	a.	Renew the Excess General and Automobile Liability Insurance policy, including Public Officials and Employment Practices Liability, with Everest, AXIS, Hiscox USA, Swiss Re, Arch and RSUI, for a one-year term, with a liability limit of $100 million each occurrence/annual aggregate in excess of a self-insured retention of $2 million each occurrence, including legal defense costs within self-insured retention, which includes a stand-alone Terrorism Risk Insurance Act coverage of $25 million at a cost of $75,000, for a total annual premium of $1,280,249.00, effective July 1, 2009;
	b.	Renew the Excess Workers’ Compensation and Employers’ Liability Insurance policy with AIU, for a one-year term, in excess of a self-insured retention of $1 million each accident, with a liability limit of $25 million annual aggregate, for an annual premium of $213,582.00, effective July 1, 2009;
	c.	Purchase Pollution Liability Insurance policy with AIU, for a three-year term, with a $250,000 deductible and $5 million limit for a three-year pre-paid premium of $102,921.00, effective July 1, 2009 through June 30, 2012;
	d.	Renew the Public Officials’ Liability Insurance policy, with National Union Fire Insurance Company, for a one-year term, with a liability of $2 million each occurrence/annual aggregate and a self-insured retention of $100,000 each claim, including full Employment Practices Liability coverage, for an annual premium of $42,318.00, effective July 1, 2009;
	e.	Renew the Fiduciary Liability Insurance policy for Other Post-Employment Benefits Retirement Investment Trust, with Chubb Insurance Company, for a one-year term, with a liability of $2 million each occurrence and no deductible, for an annual premium of $4,080.00, effective July 1, 2009; and,
	f.	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 $25,000.00 deductible and $5,000.00 deductible respectively, and a liability limit of $500,000.00 for loss of money and securities at the Golden Gate Bridge Toll Plaza, subject to a $5,000 deductible and $15,000.00 limit at all other locations with a deductible of $5,000.00, for an annual premium of $11,320.00, effective July 1, 2009 through June 30, 2012;

	with the understanding that requisite funds are available in the FY 09/10 Bridge, Bus, Ferry and District Divisions’ Operating Budgets. Adopted AYES (16): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro NOES (0): None ABSENT (3): Directors Brown and Sanders; First Vice President Reilly

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 11, 2009

19.	Approve Renewal of the Health and Benefit Insurance Plans Directors STROEH/KERNS Resolution No. 2009-059 approves renewal of the Health and Benefit Insurance Plans, for a one-year term, effective July 1, 2009 through June 30, 2010, as follows:
	a.	Medical Stop-Loss Coverage with Blue Shield of California, including a deductible of $175,000.00, in the estimated amount of $424,000.00;
	b.	Kaiser Foundation Health Plan, in the estimated amount of $5,141,000.00;
	c.	Blue Shield of California PPO Plan, on a self-funded basis, at an estimated cost of $8,832,000.00;
	d.	Blue Shield of California HMO Plan, in the estimated amount of $1,511,000.00;
	e.	CVS Caremark Prescription Drug Plan, in the estimated amount of $4,728,000.00;
	f.	OptumHealth Behavioral Solutions, in the amount of $36,000.00;
	g.	Vision Service Plan of California, on a self-funded basis, in the amount of $252,000.00;
	h.	Delta Dental Plan of California, on a self-funded basis, in the amount of $2,531,000.00; and,
	i.	Group Life, Accidental Death & Dismemberment and Dependent Life Plan with Minnesota Life, in the amount of $98,000.00;

	with the understanding that requisite funds are available in the FY 09/10 Bridge, Bus, Ferry and District Divisions’ Operating Budgets. Adopted AYES (16): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro NOES (0): None ABSENT (3): Directors Brown and Sanders; First Vice President Reilly

CLOSED SESSION

20.	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 pending litigation listed on the agenda as Red and White Ferries, Inc., vs. Golden Gate Bridge, Highway and Transportation District (District). After closed session, President Boro 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 item of pending litigation, Red and White Ferries, Inc., vs. District. Mr. Miller stated that no formal action will be taken at this time.

ADJOURNMENT

21.	All business having been concluded, the meeting was adjourned at 11:02 a.m., in the memory of Aurora Hedges, Fay Wong, Pak Lin Shum and Marjorie McQuiston Priest.

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District