Regular Meeting of the Board of Directors of February 12, 2010.

Carried

Claim of Dominic Yam

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Presentation of Ten-Year Service Award to Joseph M. Wire, Auditor-Controller, District Division

President Boro presented a Ten-Year Service Award to Joseph M. Wire, Auditor-Controller, District Division, and expressed his congratulations on behalf of the Board of Directors.

Authorize Execution of an Amendment to the Professional Services Agreement with Anchor QEA, L.P. (Formerly Known as Anchor Environmental CA, L.P.), Relative to Request for Proposals No. 2008-FT-3, Consultant to Provide Berth and Channel Maintenance Dredging Design and Permitting Support Services for the Larkspur Ferry Terminal

Directors EDDIE/STROEH
Resolution No. 2010-016 authorizes execution of an Amendment to the Professional Services Agreement with Anchor QEA, L.P. (formerly known as Anchor Environmental CA, L.P.), relative to Request for Proposals No. 2008-FT-3, Consultant to Provide Berth and Channel Maintenance Dredging Design and Permitting Support Services for the Larkspur Ferry Terminal, in the amount of $85,000.00, to provide additional environmental and design services related to assistance in obtaining dredging and disposal permits and to prepare bid documents for the Larkspur Ferry Terminal Berth and Channel Maintenance Dredging Project; with the understanding that requisite funds are available in the FY 09/10 Ferry Transit Division Capital Budget.

Adopted

AYES (16): Directors Brown, Campos, Chu, Dufty, Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro
NOES (0): None
ABSENT (3): Directors Cochran and Grosboll; First Vice President Reilly

Mr. Wire reiterated that the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability (Plan) laid out specific initiatives to improve work through technology, which includes implementation of automated ferry revenue collection. Mr. Wire stated that the ferry electronic ticket vending machines (TVM) are part of the TransLink® system. Mr. Wire also stated that the San Francisco Municipal Transportation Agency (SFMTA) is in the process of procuring TVMs from Cubic through a contract with the MTC. He informed the Board that the deadline for procuring the TVMs from Cubic is March 8, 2010, and after that it will be necessary for the District to negotiate costs directly from Cubic. He described how the TVMs will primarily dispense single-use tickets for the limited-use riders, as well as vends TransLink® cards for the frequent-use riders. He noted that the single-use tickets will have a limited life span either from being spoiled or by reaching an expiration date. He stated that the project will be funded with Regional Measure 2 (RM2) Funds, in the amount of $2 million and District Reserves in the amount of $2 million.

Ms. Kupersmith stated that this purchase is called for in the Plan and may result in the elimination of seven positions once fully implemented. Ms. Kupersmith noted that Deputy General Manager/Ferry Transit Division James Swindler has already met twice with the Union leadership regarding this matter. She also stated that there will be appropriate meet and confer discussions with Union leadership as the time nears for any position changes as a result of this purchase.

Marina Secchitano, defended the seven Ferry Ticket Agent positions that may be impacted due to the automation of the ferry revenue collection at the Larkspur and San Francisco Ferry Terminals. Ms. Secchitano described the excellent work and customer service that the Ferry Ticket Agents provide to the patrons. She requested that the District table this matter until SFMTA has successfully implemented its system.

Kelley Davis, thanked the Board for being given the opportunity to speak, and stated that she is a Ferry Ticket Agent. Ms. Davis described the service that she provides and stated that the District will lose its world-class customer service if Ferry Ticket Agents positions are eliminated.

Karen Keskinen, stated that she is a Ferry Ticket Agent and she described the services that she provides, including help with lost and found and crowd control matters.

Jovon Coleman, stated that he is a Ferry Terminal Assistant and he described all the awards that the ferry employees have received over the years of service. Mr. Coleman also stated that ferry passengers deserve the assistance that is provided by Ferry Ticket Agents. Mr. Coleman expressed his concerns regarding job security due to automation.

• Director Stroeh inquired as to the timeline that the layoffs may take place. In response, Ms. Kupersmith stated that the TVMs will be ready in approximately 14 months, at which time staff will present any changes of personnel to the Board for its review, discussion and approval.

• Director Campos made the following comments and inquiries:

  • He inquired as to which services the District would lose by automating this function. In response, Ms. Kupersmith stated that upon implementation of the automated ferry TVMs, the Ferry Ticket Agent positions may be eliminated in keeping with the direction given by the Board to reduce costs. Ms. Kupersmith acknowledged that there is a definite benefit with having an employee available to assist patrons, although other transit systems, such as Bay Area Rapid Transit District and Caltrain, operate effectively with automated ticket vending machines.
  • He commented that, given these hard financial times and the need for businesses to be competitive, the TVM vendor would likely negotiate a comparable cost to the District separate of their contract with SFMTA; therefore, removing the time constraints of taking action on this item today.
  • He inquired as to the equity of layoffs in regards to management, as oftentimes frontline workers are let go before management. In response, Ms. Kupersmith stated that there are assumptions built into the Plan that include the elimination of another four to five positions, some or all of which might be management or non-union positions.
  • He commented that the Board has an obligation to ensure that the policy changes that are adopted address the budget shortfall in manner that is consistent with District values.

• Director Dufty inquired about the District’s policy for retraining employees into other positions. In response, Ms. Kupersmith stated that there are provisions in the District’s reduction-in-force policy to retrain or reposition employees.

• Director Kerns inquired as to how the District will handle ancillary services, such as lost and found, if ferry positions are eliminated. In response, Ms. Kupersmith stated that there will be staff onsite at the ferry terminals at all times to handle ancillary services.

• Director Newhouse Segal inquired regarding the advantage or disadvantage of deferring action on this item. In response, Ms. Kupersmith stated there is a cost benefit to procuring TVMs through MTC via the SFMTA purchase, because SFMTA is purchasing a large amount and the District will enjoy economies of scale in pricing. In addition, Mr. Wire stated that the cost of the TVMs, after the deadline date, will likely increase in cost, and that amount is unknown at this time.

• Directors McGlashan and Snyder requested staff to provide the Board with an analysis on customer service due to any loss of employees relative to this automation when staff presents any changes of personnel to the Board for its review, discussion and approval.

• Director McGlashan made the following comments and inquiries:

  • He stated that labor agreements usually include bumping rights and require any layoffs to be by seniority, which oftentimes results in the job loss of frontline workers, rather than that of management positions, and he requested staff to inform the Board of any management positions that may be lost when presenting any changes of personnel.
  • He stated that the trend to improve costs by replacing employees with automation for public and private institutions is caused by a broken Federal and State government tax system in regards to imposing taxes on employers, and encouraged the Directors that are seeking political positions to author tax reform laws.

• President Boro made the following comments and inquiries:

  • He acknowledged that he is aware that services could be of poorer quality for agencies after implementing layoffs. He further stated that it is important to adhere to timeline of the Plan that was adopted by the Board in order to keep the District solvent.
  • He instructed staff to take a look at the employees who potentially could be laid off in order to possibly give them first priority for future job openings.

• Director Eddie commented that cutbacks are difficult for any organization; however, the District is faced with a budget shortfall. He made reference to a survey of top economists that showed more than 80% believed that the worst of the recession is over, but that the recovery will be slow and painful.

Director Campos proposed a motion to table the matter of , “Approve Actions Relative to the Procurement of Equipment and Services for the Ferry Electronic Fare System Project.” The motion failed for lack of a second.

Failed

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

Adopted

AYES (15): Directors Brown, Chu, Dufty, Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro
NOES (1): Director Campos
ABSENT (3): Directors Cochran and Grosboll; First Vice President Reilly

Approve Renewal of the Marine Insurance Program

Directors STROEH/KERNS
Resolution No. 2010-018 approves actions relative to the renewal of the Marine Insurance Program, as follows:

with the understanding that requisite funds are available in the FY 09/10 Ferry Transit Division Operating Budget, and that requisite funds will be included in the FY 10/11 Ferry Transit Division Operating Budget.

Adopted

AYES (16): Directors Brown, Campos, Chu, Dufty, Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro
NOES (0): None
ABSENT (3): Directors Cochran and Grosboll; First Vice President Reilly

Receive the Golden Gate Bridge, Highway and Transportation District’s Other Postemployment Benefit Trust’s Audited Financial Statements for the Year Ending June 30, 2009

Directors STROEH/SOBEL
Resolution No. 2010-019 receives the Other Post-Employment Benefits (OPEB) Retirement Investment Trust Board’s Financial Statements for the Year Ending June 30, 2009, as submitted by Vavrinek, Trine, Day & Co., LLP, to the OPEB Retirement Investment Trust Board at its meeting of February 24, 2010.

Adopted

AYES (16): Directors Brown, Campos, Chu, Dufty, Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro
NOES (0): None
ABSENT (3): Directors Cochran and Grosboll; First Vice President Reilly

Attorney’s Report

Attorney David Miller, at the request of President Boro, stated that the Board of Directors would convene in closed session to discuss two matters, listed on the Agenda as stated above.

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 hear two reports from legal counsel with regard to the matters listed in Item No. 5 above. Mr. Miller stated that no formal action will be taken at this time.