4-2010

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

FEBRUARY 26, 2010

 

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, February 26, 2010, at 10:00 a.m., President Boro presiding.

ROLL CALL

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

Directors Absent (3): Directors Cochran and Grosboll; 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; Attorneys David J. Miller, Kimon Manolius, Julie H. Veit; Deputy General Manager/Bridge Division Kary H. Witt; Deputy General Manager/Bus Transit Division Teri W. Mantony; Deputy General Manager/Ferry Transit Division James P. Swindler; Director of Risk Management and Safety William R. Stafford; Electronic Revenue Collection Program Manager David Dick; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: Marina Secchitano, Inlandboatmen’s Union of the Pacific; Karen Keskinen, Ticket Agent/Ferry Transit Division; Kelley Davis, Ticket Agent/Ferry Transit Division; Jovon Coleman, Terminal Assistant/Ferry Transit Division

PLEDGE OF ALLEGIANCE

Director Barbara Pahre led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

Public Comment was received relative to Agenda Item No. 8., below.

CONSENT CALENDAR

Directors STROEH/EDDIE moved approval of the Consent Calendar. All items were approved by the following vote of the Board of Directors:

AYES (11): Directors Brown, Elsbernd, Kerns, Moylan, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; President Boro

NOES (0): None

ABSENT (8): Directors Campos, Chu, Cochran, Dufty, Grosboll, McGlashan and, Newhouse Segal; First Vice President Reilly

   
1. Approve the Minutes of the Following Meetings:
   
  a. Transportation Committee/Committee of the Whole of February 11, 2010;
  b. Finance-Auditing Committee/Committee of the Whole of February 11, 2010; and,
  c.

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

Carried

   
2. Denial of Claims
     
  a.

Claim of Dominic Yam

Carried

  b. Insufficient Claim of Matt Wakeman

Carried

  c. Claim of Jeffrey D. Sala

Carried

  d. Subrogation Claim of California State Automobile Association (Insured: Nicole Socia)

Carried

  e. Amended Subrogation Claim of State Farm Mutual Automobile Insurance Company (Insured: Eric C. Blasen)

Carried

  f. Claim of Jonah Buffa

Carried

  g. Claim of Bonnie Sachs

Carried

     
GENERAL MANAGER'S REPORT
   
3.
General Manager Celia Kupersmith reported that all items contained in the General Manager’s report were informational. Ms. Kupersmith provided an update on the existing Memorandum of Understanding between the District, the Metropolitan Transportation Commission (MTC) and the San Francisco County Transportation Authority regarding the Doyle Drive Reconstruction Project (Doyle Drive Project). She also briefed the Board about the current traffic congestion relative to recent road closures for the Doyle Drive Project.
   
4.

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.

   
ATTORNEY’S REPORT
   
5.
Attorney David Miller reported that all items contained in the Attorney’s Report were informational. Mr. Miller also reported that a closed session would be held just prior to the conclusion of the meeting to discuss two matters, listed on the Agenda as follows: Item No. 6.B.1., “Lawsuit of Derek E. Turner and Mari Toban Blome vs. Kris Lafond; Margaret Planka; Daniel Schneider; California Highway Patrol Commissioner J.A. Farrow; The Golden Gate Bridge, Highway and Transportation District (District) and Does 1 through 20”; and, 6.B.2., “Lawsuit of Grace Dammann and Sabrina Schroeder-Dammann (by and through Conservator and Guardian Ad Litem Nancy Schroeder) vs. District.”
   
ENGINEER’S REPORT
   
6.
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 FEBRUARY 25, 2010
   
7.

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

   
8. Approve Actions Relative to the Procurement of Equipment and Services for the Ferry Electronic Fare System Project
   
  a. Staff Presentation
   
 

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.

   
  b. Public Comment
   
 

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.

   
  c. Board Discussion
   
 
  • 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.
   
  d. Motion to Table
   
 

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

   
  e. Action taken by the Board
   
  Directors EDDIE/STROEH
Resolution No. 2010-017
approves actions relative to the procurement of equipment and services for the Ferry Electronic Fare System Project, as follows:
  a.
Authorize the General Manager to enter into a Cooperative Agreement with the Metropolitan Transportation Commission (MTC) for procurement of electronic ticket vending machines and related hardware and software enhancements with Cubic Corporation, dba Cubic Transportation Systems, at a cost of $2,475,000.00, and reimbursement of MTC’s administrative services in an amount not to exceed $75,000.00; and,
  b.
Authorize execution of Amendment No. 3 to the Professional Services Agreement with Booz Allen Hamilton, Inc., to provide continued support of the design, procurement and implementation of the electronic ticket vending machines, in an additional amount not to exceed $187,908.00;
   
 

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

   
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF FEBRUARY 25, 2010
   
9.

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:

  a.
Renew the Hull and Machinery/Protection and Indemnity Insurance policy with AGCS Marine Insurance Company (40%), National Union Insurance Group, Inc. (25%), Starr Indemnity & Liability Company (25%), and Navigators Insurance Company (10%), with an annual aggregate deductible of $350,000.00 and a limit of liability of $1 million, including Terrorism Risk Insurance Act (TRIA) endorsements for the 2010 Policy Year, at an annual premium of $219,008.00, for a one-year term, effective February 28, 2010;
  b.
Renew the Excess Marine Liability Insurance policy (including Terminal Operator’s Legal Liability and Excess Protection and Indemnity Insurance), with Starr Indemnity & Liability Company, National Union Insurance Group, Inc., AGCS Marine Insurance Company, Continental Insurance Company, Great American Insurance Group and Navigators Insurance Company, with a limit of liability of $100 million, including TRIA endorsements for the 2010 Policy Year, at an annual premium of $132,425.00, for a one-year term, effective February 28, 2010; and,
  c.
Renew the Vessel Pollution Liability Insurance policy with Great American Insurance Co., at an annual premium of $5,368.00, for a one-year term, effective February 28, 2010;
   
 

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

   
10.

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

   
CLOSED SESSION
   
11.

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.

   
ADJOURNMENT
   
12.
All business having been concluded, the meeting was adjourned at 11:10 a.m., in the memory of Colonel Paul V. Crotty, Alec Melkonians, Ryan Thomas Shershanovich, Edward B. Kelley and Ann Elizabeth Neal.
   
   

 

Respectfully submitted,

/s/ Janet S. Tarantino
Secretary of the District