July 23, 2009

REPORT OF THE BUILDING AND OPERATING COMMITTEE/
COMMITTEE OF THE WHOLE

Honorable Board of Directors
Golden Gate Bridge, Highway
  and Transportation District

Honorable Members:

A meeting of the Building and Operating Committee/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Thursday, July 23, 2009, at 10:00 a.m., Chair Eddie presiding.

Committee Members Present (8): Chair Eddie; Vice Chair Moylan; Directors Cochran, McGlashan, Newhouse Segal, Reilly and Stroeh; President Boro (Ex Officio)
Committee Members Absent (0): None
Other Directors Present (3): Directors Grosboll, Pahre and Sobel

Committee of the Whole Members Present (11): Directors Cochran, Grosboll, McGlashan, Moylan, Newhouse Segal, Pahre, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
Committee of the Whole Members Absent (8): Directors Brown, Campos, Chu, Dufty, Elsbernd, Kerns, Sanders and Snyder

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 Madeline Chun; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Ferry Division James P. Swindler; Deputy General Manager/Administration and Development Z. W. Johnson; Public Affairs Director Mary C. Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

 

       
1.

Approve Actions Relative to the Award of Contract No. 2010-BT-1, San Rafael Body Shop Roof Replacement and Solar Panels Installation, to Angotti & Reilly, Inc.

In a memorandum to Committee, Deputy District Engineer Ewa Bauer, District Engineer Denis Mulligan and General Manager Celia Kupersmith reported on staff’s recommendation to approve actions relative to award of Contract No. 2010-BT-1, San Rafael Body Shop Roof Replacement and Solar Panels Installation, to Angotti & Reilly, Inc., (Angotti & Reilly).

The report stated that the existing San Rafael Bus Facility Body Shop was built in 1972 and that the building had not received any major repairs or rehabilitation since its original construction. The project would include a new rooftop solar powered system which will generate about five percent of electricity needs for the entire San Rafael Bus facility. The report provided the details of the scope of work.

Contract No. 2010-BT-1 was advertised on June 16, 2009, and on July 14, 2009, eight bids were received, opened and publicly read by the Secretary of the District. Staff determined that the lowest bidder, Angotti & Reilly, is responsive and responsible at a cost of $493,000.00. The DBE Program Administrator has determined that Angotti & Reilly has complied with the DBE requirements and that no DBE participation is anticipated during the performance of this contract.

The report also stated that a budget increase in the FY 09/10 Bus Transit Division Capital Budget, in the amount of $122,000.00, is required, to be funded with District reserves. The installation of the solar panels will allow the District to be eligible to receive a rebate of approximately $72,000.00 from the California Solar Incentive program which may offset the increase to the project budget. A copy of the report is available from the Office of the District Secretary and on the District’s web site.

At the meeting, Mr. Mulligan summarized the staff report, stating that the payback period for the lighting replacement is under two years and for the solar system on the roof is twelve years, excluding the rebates. Mr. Mulligan also stated that this procurement is an ideal opportunity to install solar panels at one of our locations.

Discussion ensued, including the following comments and inquiries:

  • In response to an inquiry from Director Grosboll about the District’s workplan for the replacement of roofs on District buildings, Mr. Mulligan described the workplan prepared by the Engineering Department, stating that the projects are prioritized based on need and that the cost for these projects is included in the 10-Year Capital Plan.
  • President Boro commented that the county of Marin is working with other public entities that may be eligible to receive the American Recovery and Reinvestment Act of 2009 (ARRA)/Stimulus funds for construction projects that could be bid jointly, and that it is his understanding that these funds could be made available as soon as September 2009. In response, Mr. Mulligan stated that staff will look into this matter.

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/MOYLAN to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Building and Operating Committee recommends that the Board of Directors approve actions relative to the award of Contract No. 2010-BT-1, San Rafael Body Shop Roof Replacement and Solar Panels Installation, as follows:

  a.

Authorize award of a contract to Angotti & Reilly Inc., San Francisco, CA, in the amount of $493,000.00;

  b.
Authorize a contingency fund in the amount of $49,300.00, equal to 10% of the contract award;
  c.
Establish a total project budget of $772,000.00, to be funded with $414,019.00 State I-Bond funds and $357,981 District funds; and,
  d.

Authorize a budget increase in the FY 09/10 Bus Transit Division Capital Budget in the amount of $122,000.00, subject to the concurrence by the Finance-Auditing Committee at its meeting of July 23, 2009;

 

with the understanding that requisite funds are available in the FY 09/10 Bus Transit Division Capital Budget.

Action by the Board at its meeting of July 24, 2009 – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Eddie; Vice Chair Moylan; Directors Cochran, Newhouse Segal and Stroeh; President Boro
NOES (0): None
ABSENT (2): Vice Chair Reilly; Director McGlashan

[With the arrival of Directors McGlashan and Reilly, the Committee became a Committee of the Whole]

       
2.

Authorize Execution of Change Order No. 1 to Contract No. 2009-FT-7, Four Marine Diesel Engines and Installation Support Services for Re-Powering of the M.V. Del Norte, with Pacific Power Products

In a memorandum to Committee, Deputy General Manager/Ferry Division James Swindler and General Manager Celia Kupersmith reported on staff’s recommendation to authorize execution of Change Order No. 1 relative to Contract No. 2009-FT-7, Four Marine Diesel Engines and Installation Support Services for Re-Powering of the M.V. Del Norte; and, approve other related actions.

The report stated that in 2008, the District procured four main propulsion engines from Pacific Power Products, in addition to engineering and installation and support services. Given the importance of having a single entity assume the risk and warranty of the design and integration of the entire propulsion system, staff recommends procuring the drive shafts from PPP as part of the engine procurement contract, including responsibility of engineering the drive shaft as part of the propulsion system.

The report stated that requisite funds are included in the FY 09/10 Ferry Transit Division Capital Budget for this Change Order. A copy of the report is available from the Office of the District Secretary and on the District’s web site.

Discussion ensued, including the following inquiries:

  • Director Stroeh inquired as to the reason why the drive shaft was not included in the original purchase of the new engines. In response, Mr. Swindler stated that at the time staff presented the original recommendation, work had not yet commenced.
  • Director Cochran inquired as to whether the waterjets and engines are similar to those installed on the M.V. Napa. In response, Mr. Swindler responded in the affirmative.

Staff recommended and the Committee concurred by motion made and seconded by Directors COCHRAN/STROEH to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Building and Operating Committee recommends that the Board of Directors approve actions relative to Contract No. 2009-FT-7, Four Marine Diesel Engines and Installation Support Services for Re-Powering of the M.V. Del Norte, with Pacific Power Products, Kent, WA, as follows:

  a. Authorize execution of Change Order No. 1, in the amount of $144,432.00;
  b. Authorize an increase to the contingency fund in the amount of $13,000.00; and,
  c.

Establish a total project budget of $1,676,036.00, to be 100% grant funded ($3,163,854.00 Carl Moyer funds and $1,233,146.00 Federal Transit Administration funds).

Action by the Board at its meeting of July 24, 2009 – Resolution
NON-CONSENT CALENDAR

       
 

AYES (11): Directors Cochran, Grosboll, McGlashan, Moylan, Newhouse Segal, Pahre, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
NOES (0): None

       
3.

Approve Actions Relative to the Award of Sole Source Contract No. 2009-FT-12, Diesel Engines and Drive Train & Installation Support Services for the M.V. Snohomish (M.V. Napa) and the M.V. Chinook Ferries, to Valley Power Systems North, Inc.

In a memorandum to Committee, Marine Projects Manager/Ferry Division Christian Stark, Deputy General Manager/Ferry Division James Swindler and General Manager Celia Kupersmith reported on staff’s recommendation to approve actions relative to the award of Sole Source Contract No. 2009-FT-12, Diesel Engines and Drive Train & Installation Support Services for the M.V. Snohomish (M.V. Napa) and the M.V. Chinook Ferries, to Valley Power Systems North, Inc. (Valley Power Systems).

The report stated that the District has recently purchased two ferries, the M.V. Chinook & M.V. Napa (formerly the M.V. Snohomish), from Washington State Ferries (WSF), and will be repowering both of these ferries with MTU 12V4000M73 (MTU) engines, which engines meet both the District’s power rating requirements and satisfies current California Air Resources Board emissions standards.

The total cost to purchase the eight engines (four per ferry), extended warranties and installation support services from Valley Power Systems is $7,214,067.51. Because only a single engine type is possible, and because the engine is only available from a single source, staff has determined that this procurement meets the requirement for a sole source. Since Valley Power Systems is uniquely able to provide the work, a competitive bidding process would serve no useful purpose here.

The report stated that additional costs were not included in the base contract; therefore, staff is requesting that a contingency fund be established in the FY 09/10 Ferry Transit Division Capital Budget, in the amount of $800,000.00. Staff also recommends that the Board delegate authority to the General Manager to execute any change orders within the contingency fund up to $100,000.00, and that any change orders exceeding that amount will require the prior concurrence of the Board President and the Chair of the Building and Operating Committee. The report noted that requisite funds are available in the respective capital project budgets for this work. A copy of the report is available from the Office of the District Secretary and on the District’s web site.

Discussion ensued, including the following inquiries:

  • President Boro made the following inquiries:
    • He inquired as to the difference between these engines and those installed on the M.V. Del Norte. In response, Mr. Swindler stated these engines differ from those on the District’s other ferries in that they include the latest technology, and there is a slight difference in the power rating. Mr. Swindler noted that the parts are interchangeable.
    • He inquired as to why the contract includes compensation for travel expense. In response, Mr. Swindler stated that travel expenses are paid in order for Valley Power Systems to go back and forth from the shipyard holding them responsible to oversee the installation of the engines. Mr. Swindler noted that future proposed projects will have travel expenses factored into the contract costs.
    • He inquired as to the reason why the M.V. Chinook is presently stationed in Seattle, WA, and the M.V. Napa is stationed at the Larkspur Ferry Terminal. In response, Mr. Swindler stated that the M.V. Napa was put into service to replace the M.V. Del Norte during its refurbishment. Mr. Swindler also stated that the site for refurbishment of the M.V. Chinook has not yet been determined. Ms. Kupersmith stated that staff will provide a report to Committee at its next meeting on the purchase, renovation and deployment of Golden Gate Ferries.
  • Director Grosboll inquired as to the status of District’s ferries in terms of having environmentally sensitive engines. In response, Mr. Swindler stated that the District is working with the manufacturer to produce 20% biodiesel engines which engines will be even cleaner than those being installed in the M.V. Del Norte.

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/MOYLAN to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Building and Operating Committee recommends that the Board of Directors approve actions relative to the award of Sole Source Contract No. 2009-FT-12, Diesel Engines and Drive Train & Installation Support Services for the M.V. Snohomish (M.V. Napa) and the M.V. Chinook Ferries, as follows:

  a.
Authorize award of the sole source contract to Valley Power Systems North, Inc., Hayward, CA, in the amount of $7,214,067.51, with the understanding that the M.V. Snohomish (M.V. Napa) will be funded with $10,531,285.00 Federal Transit Administration (FTA) funds, $1,170,313.00 State I-Bond funds and $3,403.00 District funds, and the M.V. Chinook will be funded with $7,955,185.00 FTA funds, $946,010.00 State I-Bond funds and $2,803,806.00 District funds;
  b. Authorize a contingency fund in the amount of $800,000.00; and,
  c. Authorize the General Manager to approve change orders to this contract up to the maximum of the approved project contingency, with the understanding that change orders exceeding $100,000.00 will require the concurrence of the Building and Operating Committee Chair and the President of the Board;
 

subject to receipt of a Buy America Regulation waiver from the Federal Transit Administration and with the understanding that requisite funds are available in the FY 09/10 Ferry Transit Division Capital Budget.

Action by the Board at its meeting of July 24, 2009 – Resolution
NON-CONSENT CALENDAR

AYES (11): Directors Cochran, Grosboll, McGlashan, Moylan, Newhouse Segal, Pahre, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
NOES (0): None

       
4.

Ratify Execution of Change Orders Relative to Contract No. 2009-FT-11, Interior and Exterior Modifications to the M.V. Snohomish (M.V. Napa), with Dakota Creek Industries, Inc.

In a memorandum to Committee, Deputy General Manager/Ferry Division James Swindler and General Manager Celia Kupersmith reported on staff’s recommendation to ratify execution of change orders relative to Contract No. 2009-FT-11, Interior and Exterior Modifications to the M.V. Snohomish (M.V. Napa); and, approve other related actions.

The report stated that the M.V. Napa (formerly the M.V. Snohomish) underwent modifications to ready it for the District’s immediate use and additional work was necessary resulting in additional costs in the amount of $55,000.00, which exceeded 10% of the original contract price. Requisite funds are available in the FY 09/10 Ferry Transit Division Capital Budget.

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/MOYLAN to forward the following recommendation to the Board of Directors for its consideration:

RECOMMENDATION

The Building and Operating Committee recommends that the Board of Directors approve actions relative to Contract No. 2009-FT-11, Interior and Exterior Modifications to the M.V. Snohomish (M.V. Napa), with Dakota Creek Industries, Inc., Anacortes, WA, as follows:

  a.
Ratify execution of various change orders, in the amount of $121,585.00, for necessary modifications, maintenance, inspection and sea trials;
  b.
Authorize an increase to the contingency fund in the amount of $55,000.00; and,
  c.

Establish a total project budget of $121,585.00, to be funded with $10,531,285.00 Federal Transit Administration funds, $1,170,313.00 State I-Bond funds and $3,403.00 District funds.

Action by the Board at its meeting of July 24, 2009 – Resolution
NON-CONSENT CALENDAR

       
 
AYES (11): Directors Cochran, Grosboll, McGlashan, Moylan, Newhouse Segal, Pahre, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
NOES (0): None
       
5.

Status Report from District Appointees on Sonoma-Marin Area Rail Transit (SMART) Board

The Committee was provided with a copy of the agenda for the June 24, 2009, meeting and the minutes of the May 20, 2009, meeting of the Sonoma-Marin Area Rail Transit District (SMART). Copies of these items are available in the Office of the District Secretary, as well as on the District’s web site.

At the meeting, Director McGlashan, one of the members of the SMART Board of Directors (SMART Board), reported on items discussed at its meeting of July 15, 2009, which discussion included decisions regarding the $8 million procurement of rail cars. Director McGlashan stated that, by majority vote, the SMART Board approved the use of heavy Diesel Multiple Units (DMU) rail cars. He further stated that this action was taken after careful consideration was given to the seating capacity of both the larger heavy DMU’s compared to the lower capacity light rail cars. He further stated that the green house gas emissions are almost identical. He noted that the regulatory requirements for the light rail cars were very challenging. In conclusion, he stated that in the long-term, the heavy DMU’s were very appealing when considering freight and passenger service. He also noted that the manufacturers assured the SMART Board that the ride quality on the heavy DMUs would be as excellent as the ride on light rail cars. He further stated that the DMU’s would be equipped with the cleanest technology and run with biodiesel fuel. In addition, Chair Eddie stated that the type of rail car is important because the stations must be designed accordingly.

Discussion ensued, including the following comments and inquiries:

  • Director Sobel inquired as to the when the SMART rail will be in service and the early projections for passenger capacity. In response, Director McGlashan stated that it takes four years to get one heavy DMU rail car delivered, plus one year for testing. Director McGlashan indicated that the SMART train is targeted to be in operation on November 2014, and estimated that there will be approximately 7,000 riders per day during weekday service, increasing to 12,000 per day in a few years. He noted that it is anticipated that bicycle riders and footpath users will make use of the service on the weekend.

Action by the Board – None Required

       
6.

Status Report on Engineering Projects

In a memorandum to Committee, Deputy District Engineer Ewa Bauer, District Engineer Denis Mulligan and General Manager Celia Kupersmith reported on current engineering projects. A copy of the report is available in the Office of the District Secretary and on the District’s web site.

At the meeting, Mr. Mulligan stated that the historic preservation process is being concluded for the Suicide Deterrent Project. Mr. Mulligan also stated that the District is in possession of a fully executed Memorandum of Agreement with the State Historic Preservation Officer and the Federal Council on Historic Preservation. He noted that the final environmental document is with the California Department of Transportation under review on behalf of the Federal Highway Administration. Mr. Mulligan also reported that night work for the Toll Plaza Pavement and Access Improvements project will commence on two consecutive weekends during the month of August, and will involve closing the underpass that connects the east parking lot to the Administration Building’s parking lot. Finally, Ms. Kupersmith stated that the District was successful in receiving $3.2 million in ARRA/Stimulus funds for the redesign and reconstruction of Sausalito pier.

Action by the Board – None Required

       
7.

Public Comment

There was no public comment.

       
8.

Adjournment

All business having been concluded, the meeting was declared adjourned at 10:40 a.m.

       
       
       
       
       
       
       
       
       
       
       
       
       

Respectfully submitted,

/s/ James C. Eddie, Chair
Building and Operating Committee