November 20, 2009

 

REPORT OF THE GOVERNMENTAL AFFAIRS
AND PUBLIC INFORMATION COMMITTEE/
COMMITTEE OF THE WHOLE

 

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

Honorable Members:

A meeting of the Governmental Affairs and Public Information Committee/Committee of the Whole (GAPI) was held in the Board Room, Administration Building, Toll Plaza, San Francisco, California, on Friday November 20, 2009, at 9:45 a.m., Chair Reilly presiding.

Committee Members Present (6): Chair Reilly; Directors Chu, Moylan, Newhouse Segal and Sanders; President Boro (Ex Officio)
Committee Members Absent (3): Vice Chair Kerns; Directors Chu and Dufty

Committee of the Whole Members Present (15): Directors Brown, Chu, Cochran, Elsbernd, Grosboll, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro (Ex Officio)
Committee of the Whole Members Absent (4): Directors Campos, Dufty, Kerns 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 David J. Miller; Attorney Allison Woodall; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Ferry Transit Division Jim Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Public Affairs Director Mary Currie; Acting Executive Assistant to the General Manager Sonia Pedlar; Assistant Clerk of the Board Lona Franklin

       
1.

Authorize Execution of a Services Agreement with Clear Wireless, LLC, Relative to Request for Proposals No. 2010-BT-5, Wireless Internet Services Onboard Golden Gate Transit Buses

In a memorandum to Committee, Marketing and Communications Director Kellee Hopper and General Manager Celia Kupersmith provided a report on staff’s recommendation to authorize execution of a Professional Services Agreement with Clear Wireless, LLC, relative to Request for Proposals (RFP) No. 2010-BT-5, Wireless Internet Services Onboard Golden Gate Transit Buses, for a five-year contract, with two additional one-year option years, at the District’s sole discretion, at no cost to the District.

The report stated that a pilot program was launched in 2008 in an effort to attract additional choice ridership on Golden Gate Transit (GGT) buses by providing wireless internet access on selected GGT bus routes. Among the benefits is the opportunity to enhance the District’s ability to communicate with customers through online advertising and passenger surveys on the internet. The staff report also detailed the procedure used to select the successful bidder. In this case, only one proposal was received from Clear Wireless, LLC (Clearwire). The staff report stated that all required documents were properly submitted and that the proposal is technically responsive to the specifications.

The staff report stated that delivery of internet access to passengers would be free of charge and free of charge to the District. The project will be a “best practice” case study. Clearwire would use the internet to advertise its CLEAR 4G (4G) services to District passengers, partially offsetting its capital costs through marketing. The staff report stated that 4G utilizes WiMAX technology to deliver advanced high-speed internet services, and that Clearwire expects this technology to be available in the San Francisco Bay Area in mid-2010. Clearwire proposed delaying complete fleet implementation until WiMAX is fully operational, but verbally agreed to install EV-DO high-speed wireless broadband service until that time.

The staff report stated there is no fiscal impact because the financial burden of this project will be borne by Clearwire.

At the meeting, Celia Kupersmith stated that the proposal is for a five-year contract, with two additional one-year options. She stated that similar service will soon also be provided on District ferries, and that customers are desirous of such service.

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 Governmental Affairs and Public Information Committee recommends that the Board of Directors authorize execution of a Professional Services Agreement with Clear Wireless, LLC, relative to Request for Proposals (RFP) No. 2010-BT-5, Wireless Internet Services Onboard Golden Gate Transit Buses, for a five-year contract term, with two additional one-year option years, at the District’s sole discretion, at no cost to the District.

Action by the Board at its meeting of November 20, 2009 – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Reilly; Directors Chu, Moylan, Newhouse Segal and Sanders; President Boro (Ex Officio)
NOES (0): None

       
2.

Authorize Execution of an Amendment to the Professional Services Agreement with Clear Channel Outdoor, Inc., Relative to Request for Proposals No. 2007-D-3, Exterior Bus Advertising Services, to Modify Terms and Conditions of the Agreement

In a memorandum to Committee, Marketing and Communications Director Kellee Hopper and General Manager Celia Kupersmith provided a report on staff’s recommendation to authorize execution of an amendment to the Professional Services Agreement with Clear Channel Outdoor, Inc., relative to RFP No. 2007-D-3, Exterior Bus Advertising Services, to modify terms and conditions of the Agreement. The report stated that since 2006, the District has had an Agreement with Clear Channel Outdoor, Inc. (Clear Channel) whereby the District received monthly payments for exterior bus advertising. The District completed its base three-year Contract in October 2009 and chose to exercise the first of two available option years.

The staff report stated that Clear Channel requested renegotiation of the Agreement due to the economic downturn. After a series of meetings with staff, Clear Channel agreed to the following staff proposal:

       
  1. Reduce the minimum annual guarantee from $1.1 million to $850,000 annually for each option year;
  2. Add a non-expiring $50,000 in-kind trade to the benefit of the District each option year;
  3. Increase the revenue share for each option year, as follows:
    a. Revenues over $900,000 with a 60% revenue share; and
    b. Revenues over $1.2 million with a 65% revenue share;
  4. Add a third-year option, exercisable solely at the District’s discretion, with the same terms and conditions as set forth above.
       
 

The staff report stated that for each year of the Agreement remaining, the minimum monthly guarantee would decrease to $850,000 annually from $1.1 million; revenue sharing would increase to 60% for revenues over $900,000 and to 65% for revenues over $1.2 million; the District would receive a non-expiring $50,000 in-kind trade to the benefit of the District each option year that would offset a portion of the loss in guaranteed revenue; and, a third-year option would be added, exercisable by the District, with the same terms and conditions as set forth in the remaining option years.

[Director Grosboll arrived at this time.]

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

RECOMMENDATION

The Governmental Affairs and Public Information Committee recommends that the Board of Directors authorize execution of the First Amendment to the Professional Services Agreement with Clear Channel Outdoor, Inc., relative to Request for Proposals No. 2007-D-3, Exterior Bus Advertising Services, to include the following: 1) modify the minimum annual guarantee for the remaining two years of the Agreement; 2) provide an in-kind trade credit as supplemental financial compensation; 3) increase the previously-approved Revenue-Sharing Agreement; and, 4) add a one-year option term to the Agreement, exercisable at the District’s sole discretion.

Action by the Board at its meeting of November 20, 2009 – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Reilly; Directors Chu, Moylan, Newhouse Segal and Sanders; President Boro (Ex Officio)
NOES (0): None

       
3.

Public Comment

There was no public comment.

       
4.

Adjournment

All business having been concluded, the meeting was adjourned at 10:00 a.m.

       

 

Respectfully submitted,

/s/ Janet Reilly, Chair
Governmental Affairs and Public Information Committee