12-2010

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 25, 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, Golden Gate Bridge Toll Plaza, San Francisco, CA, on Friday, June 25, 2010, at 10:00 a.m., President Boro presiding.

ROLL CALL

Directors Present (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro

Directors Absent (0): None

Staff Present: Deputy General Manager/Bridge Division and Acting General Manager Kary Witt; Auditor-Controller Joseph M. Wire; District Engineer Denis J. Mulligan; Secretary of the District Janet S. Tarantino; Attorney David J. Miller; Deputy General Manager/Bus Transit Division Teri Mantony; Deputy General Manager/Ferry Transit Division James Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Public Affairs Director Mary Currie; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: Alex Tonisson, International Federation of Professional and Technical Engineers (IFPTE), Local 21; Marina Secchitano, Inlandboatmen’s Union of the Pacific (IBU); Christian Yuhas, Marine Engineers Beneficial Association

PLEDGE OF ALLEGIANCE

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

PUBLIC COMMENT

Alex Tonisson, IFPTE, Local 21, commented that the purpose of The Mental Health Parity and Addiction Equity Act of 2008 (“the Act”) was to end inequity. He stated that mental health issues affect job performance, being the second leading cause of absenteeism. He requested that the Board reconsider its approval to opt out of the parity requirement for the District’s self-insured PPO plan, which was allowed by the Act.

Marina Secchitano, IBU, stated that the Act was passed by the federal government to end inequity between different types of health benefits. She stated that employees who must get treatment for mental health issues without insurance can suffer and that mental health problems can lead to absenteeism and, in some cases, to suicide. She stated that untreated mental health issues can cause accidents and lead to more employee turnover. She requested that the Board reconsider its approval to opt out of the parity requirement for the District’s self-insured PPO plan, which was allowed by the Act.

Christian Yuhas, Marine Engineers Beneficial Association, stated his support of the Union Coalition’s position regarding mental health parity. He stated that current data show that employers benefit financially when all employees are provided mental health insurance benefits. He stated that mental health issues are prevalent and can strike anyone but that, when treated, outcomes are good. He stated that employer costs from untreated mental health issues are greater than the cost of benefits to provide coverage. He requested that the Board reconsider its approval to opt out of the parity requirement for the District’s self-insured PPO plan, which was allowed by the Act.

In response to these public comments, President Boro indicated he would refer these issues to the Advisory Committee for Labor Relations.

CONSENT CALENDAR

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

AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro

NOES (0): None


1.	Approve the Minutes of the Following Meetings

	a.	Finance-Auditing Committee of June 10, 2010;
	b.	Rules, Policy and Industrial Relations Committee/Committee of the Whole of June 11, 2010; and,
	c.	Regular Meetings of the Board of Directors of May 28, 2010 and June 11, 2010. Carried

2.	Denial of Claims

	a.	Amended Claim of Chris Petersen Carried
	b.	Amended Subrogation Claim of Mercury Insurance Company (Insured: Ivan Sharamok) Carried
	c.	Subrogation Claim of State Farm Mutual Automobile Insurance Company (Insured: Kimberly Hobson) Carried
	d.	Claim of Thomas Bunker Carried
	e.	Claim of Roger Porter Carried

GENERAL MANAGER’S REPORT

3.	Presentation of Thirty-Year Service Award to Antonio Vargas, Bus Operator, Bus Transit Division President Boro presented a Thirty-Year Service Award to Antonio Vargas, Bus Operator, Bus Transit Division, and expressed his congratulations on behalf of the Board of Directors.

4.	Presentation of Twenty-Five-Year Service Award to Vicki Stewart-Heard, Bus Operator, Bus Transit Division President Boro presented a Twenty-Five-Year Service Award to Vicki Stewart-Heard, Bus Operator, Bus Transit Division, and expressed his congratulations on behalf of the Board of Directors.

ATTORNEY’S REPORT

5.	Attorney David J. Miller reported that all items contained in the Attorney’s Report are informational. He stated that a Closed Session will be held just prior to the conclusion of the meeting for a conference with the District’s Labor Negotiator concerning Inlandboatmen’s Union of the Pacific (Deckhand and Ticket Agent Units) negotiations, listed on the Agenda as Item No. 6.B. and a discussion regarding Public Employee Appointment, listed on the Agenda as Item No. 10.A.

ENGINEER’S REPORT

6.	District Engineer Denis Mulligan reported that all items contained in the Engineer’s Report are informational.

REPORT OF THE BUILDING AND OPERATING COMMITTEE MEETING/COMMITTEE OF THE WHOLE OF JUNE 24, 2010

7.	Approve Actions Relative to the Execution of a Professional Services Agreement with Erler & Kalinowski, Inc., Regarding Request for Proposals No. 2010-B-2, Lead Cleanup Phase II Feasibility Study, Remedial Action Plan and Construction Drawings for Golden Gate Bridge North and South Approaches Directors EDDIE/STROEH Resolution No. 2010-052 approves actions relative to Request For Proposals No. 2010-B-2, Lead Cleanup Phase II Feasibility Study, Remedial Action Plan and Construction Drawings for Golden Gate Bridge North and South Approaches, as follows:
	a.	Authorizes the execution of a Professional Services Agreement with Erler & Kalinowski, Inc., Burlingame, CA, in an amount not to exceed $980,057.00; and,
	b.	Authorizes a Contingency Fund in the amount of $98,000.00;
	with the understanding that requisite funds are available in the FY 10/11 Bridge Division Operating Budget. Adopted AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

8.	*Authorize Execution of the First Amendment to Contract No. 2008-MD-1, Advanced Communications and Information System, with GE Transportation Global Signaling for Microwave Network Improvements* Directors EDDIE/KERNS Resolution No. 2010-053 authorizes execution of the First Amendment to Contract No. 2008-MD-1, Advanced Communications and Information System (ACIS), with GE Transportation Global Signaling, for necessary microwave network improvements to support the new ACIS; with the understanding that requisite funds are available in the FY 09/10 Bus Transit Division Capital Budget. Adopted AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE MEETING OF JUNE 24, 2010

9.	Authorize Budget Transfers Relative to the FY 09/10 Operating Budget Directors STROEH/KERNS Resolution No. 2010-054 authorizes the following Operating Budget transfers in the amount of $2.5 million, or 1.5% of the total FY 09/10 Operating Budget Expenses:
	a.	Transfers $1,400,000.00 from the Bridge Division Debt Service to the following:
		1.	District Legal Services (Professional Fees) in the amount of $200,000.00;
		2.	District Maintenance and Security Services in the amount of $400,000.00; and,
		3.	Bridge Division Bank Services (Professional Fees) in the amount of $800,000.00.
	b.	Transfers $700,000.00 from the Bus Transit Division Fuel Expense to the following:
		1.	Bus Transit Division Operators’ Salaries in the amount of $300,000.00;
		2.	Bus Transit Division Operators’ Benefits in the amount of $200,000.00; and,
		3.	Bus Transit Division Repair and Operating Supplies in the amount of $200,000.00.
	c.	Transfers $350,000.00 from the Ferry Transit Division Fuel Expense to the Ferry Transit Division Maintenance and Security Services. Adopted

	AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

10.	Approve Adoption of the FY 10/11 Operating and Capital Budgets

	a.	Public Comment Alex Tonisson, IFPTE, Local 21, stated that the Union’s position is that the elimination of positions from the District’s FY 10/11 proposed budget is a meet and confer issue, and requested a response from the District. In response, Attorney Miller stated his recommendation that action on the Table of Organization related to elimination of vacant, represented positions be deferred pending meet and confer sessions with the applicable Unions. Christian Yuhas, Marine Engineers Beneficial Association, expressed his concern that the Marin-Sonoma transit terminal is not included in the FY 10/11 proposed budget. He requested that the District work together with the federal government to retain the terminal and continue protecting the Highway 101 Corridor.

	b.	Discussion by the Board Discussion ensued, including the following comment: Director Sanders commented that the District’s Proposed FY 10/11 Budget (Budget) is reflective of many state-wide budgets where spending is higher than revenue. She stated that, while some services are being cut, this Budget includes a 1.75% salary increase for Coalition-represented and non-represented employees, effective January 1, 2011, as well as significant increases to healthcare costs. She stated her approval of the Board moving forward with a fiscally stable budget, and, for that reason, would vote in favor of the Budget. In response, President Boro stated that Board members and staff understand the issues and her position and that all are working toward stability.

	c.	Action by the Board Directors STROEH/KERNS Resolution No. 2010-055 approves adoption of the FY 10/11 Operating and Capital Budgets, including the following items:
		a.	District Goals, Projects and Accomplishments;
		b.	Changes to the Reserve Structure;
		c.	Changes to the Table of Organization with the exception of elimination of vacant, represented positions, pending meet and confer sessions with the applicable Unions;
		d.	Limited delegation of Capital Budget Policy to the General Manager to move specific projects from a FY 11/12 project list into the FY 10/11 Capital Budget;
		e.	Implementation of four Financial Plan Initiatives; and,
		f.	A 1.75% salary increase for Coalition-represented and non-represented employees, effective January 1, 2011. Adopted

	AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

11.	Approve Renewal of the Liability Insurance Program Directors STROEH/COCHRAN Resolution No. 2010-056 approves renewal of the Liability Insurance Program, effective July 1, 2010, as follows:
	a.	Renews the Excess General and Automobile Liability Insurance Program, including Public Officials and Employment Practices Liability with TRIEA, with Everest, Swiss Re, Arch and Lexington, for a one-year term, with a liability limit of $110 million each occurrence/annual aggregate in excess of a self-insured retention of $2 million each occurrence, including legal defense costs within the self-insured retention, for a total annual premium of $1,200,340.00;
	b.	Renews the Excess Workers’ Compensation and Employers’ Liability Insurance Program with Chartis, for a one-year term, in excess of a self-insured retention of $1 million each accident, with workers’ compensation statutory limits, for an estimated annual premium of $260,002.00;
	c.	Renews the Public Officials’ Liability Insurance Program 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 $100,000.00 each claim, including full Employment Practices Liability Coverage, for an annual premium of $43,032.00;
	d.	Renews the Fiduciary Liability Insurance Program, for the Other Public Employee Benefits (OPEB) Trust Board, 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; and,
	e.	Renews the Public Employees’ Faithful Performance Bond and Comprehensive Dishonesty, Destruction and Disappearance Bond, with Fidelity and Deposit Company of Maryland, for a one-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 $5,000.00 deductible and $15,000.00 limit at all other locations with a deductible of $5,000.00, for an annual premium of $10,048.00;
	with the understanding that requisite funds are available in the FY 10/11 Bridge, Bus Transit, Ferry Transit and District Divisions’ Operating Budgets. Adopted AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

12.	Approve Renewal of the Property Insurance Program Directors STROEH/KERNS Resolution No. 2010-057 approves renewal of the Property Insurance Program, as follows:
	a.	Approves the District’s Building & Facilities Insurance Program with $125 million of All Risk coverage, which includes earthquake and flood coverage for $20 million subject to deductibles, with Lexington, Arch and Endurance Insurance Cos., for a renewal premium of $566,648.00, for a twelve-month term, effective July 1, 2010, through June 30, 2011; with the understanding that requisite funds are available in the FY 10/11 Bridge, Bus, Ferry and District Division Operating Budgets; and,
	b.	Continues allocation of monies to the Restricted Contingency Reserve for FY 10/11 in the amount of $1,300,000.00, as self-insurance for costs associated with Bridge Physical Damage and Loss of Revenue; with the understanding that requisite funds are available in the FY 10/11 approved budget, and that the Restricted Contingency Reserve will be funded in conjunction with the Building & Facilities Insurance Program renewal date of July 1, 2010. Adopted

	AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

13.	Approve Renewal of the Health and Benefit Insurance Plans Directors STROEH/McGLASHAN Resolution No. 2010-058 approves renewal of the District’s Health and Benefits Insurance Plans, for a one-year term, with the exception of the CVS Caremark Prescription Drug Plan, which is for a three-year term, effective July 1, 2010, as follows:
	a.	Medical Stop-Loss Coverage, with Blue Shield of CA, at a cost of $477,000.00;
	b.	Kaiser Foundation Health Plan, at a cost of $6,337,000.00;
	c.	Blue Shield of California PPO Plan, on a self-funded basis, at an estimated cost of $9,827,000.00, and includes increased claims management by Blue Shield;
	d.	Blue Shield of California HMO Plan, at an estimated cost of $1,937,000.00;
	e.	CVS Caremark Prescription Drug Plan, at an estimated cost of $4,438,000.00 for FY 10/11, expected to save the District $1,382,000.00 over the three-year term of the Agreement;
	f.	OptumHealth Behavioral Solutions, at an estimated cost of $34,000.00;
	g.	Vision Service Plan of California (Self-funded), at an estimated cost of $251,000.00;
	h.	Delta Dental Plan of California (Self-funded), at an estimated cost of $2,545,000.00; and,
	i.	Group Life, Accidental Death & Dismemberment and Dependent Life Plan, with Minnesota Life, at an estimated cost of $98,000.00;
	with the understanding that requisite funds are included in the FY 10/11 Bridge, Bus Transit, Ferry Transit and District Divisions’ Operating Budgets. Adopted AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

14.	Authorize Execution of a Memorandum of Understanding Regarding Operations and Maintenance of ClipperSM Smartcard Fare Collection System

	a.	Public Comment Marina Secchitano, IBU, stated that the Metropolitan Transportation Commission (MTC) Service Center, which is projected to be installed within the main station inside the Bay Area Rapid Transit (BART) system in San Francisco, will be inefficient and cumbersome for ferry passengers to use. She stated that there is a need for more information to be provided to travelers using ferries, and that a service center inside the Ferry Building could utilize customer service agents who could address both BART or Golden Gate Ferry matters. In response, President Boro stated that, at the Finance-Auditing Committee Meeting of June 24, 2010, the General Manager explained that the MTC is putting an information center inside the BART main terminal, and that the District has had conversation with the MTC about the project. The MTC’s response was that the BART station attracts the largest number of passengers and, for that reason, the MTC will be moving forward with plans for a service center within the BART station. Mr. Swindler added that there is a question as to whether a service center at the Ferry Building would be sustainable.

	b.	Action by the Board Directors STROEH/KERNS Resolution No. 2010-059 authorizes execution of a Memorandum of Understanding (MOU) with the Metropolitan Transportation Commission (MTC) regarding the operations and maintenance of the ClipperSM Smartcard Fare Collection System, effective upon execution by the MTC and all the participating transit agencies that operate and maintain the ClipperSM system, or such effective date as determined by the General Manager in concert with the other parties to the MOU. Adopted AYES (19): Directors Brown, Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None [Director Brown departed at this time.]

15.	CLOSED SESSION

	a.	Report of the Attorney Attorney David Miller, at the request of President Boro, stated that the Board of Directors would convene in closed session for a conference with the District’s Labor Negotiator concerning negotiations with the Inlandboatmen’s Union of the Pacific (Deckhand and Ticket Agent Units) pursuant to Government Code Section 54957.6, listed on the Agenda as Item 6.B., and for consideration of a Public Employee Appointment regarding the position of the General Manager, pursuant to Government Code Section 54957(b)(1), listed on the Agenda as Item No. 10.A. 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 matters listed above.

	b.	Actions by the Board

		1.	Authorize Execution of a Memorandum of Understanding with the Inlandboatmen’s Union of the Pacific Directors STROEH/KERNS Resolution No. 2010-060 authorizes execution of a Memorandum of Understanding with the Inlandboatmen's Union of the Pacific, as representative of the deckhands unit, effective June 17, 2010 through June 30, 2011. Adopted AYES (15): Directors Campos, Cochran, Dufty, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (3): Directors Chu, Elsbernd, Sanders ABSENT (1): Director Brown

		2.	Approve an Amendment to the Separation Policy for Non-Represented Employees Directors STROEH/KERNS Resolution No. 2010-061 approves an amendment to the separation policy for non-represented employees to address prospective reductions-in-force. Adopted AYES (17): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (1): Director Sanders ABSENT (1): Director Brown

		3.	Approve the Retention of Carmen Clark Consulting Relative to the Internal Recruitment and Selection of the General Manager Directors KERNS/MOYLAN Resolution No. 2010-062 approves the retention of Carmen Clark Consulting, San Francisco, CA, for assistance in the internal recruitment and selection of the General Manager, at a cost not to exceed $10,000.00. Adopted AYES (18): Directors Campos, Chu, Cochran, Dufty, Elsbernd, Grosboll, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Sanders, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None ABSENT (1): Director Brown

ADJOURNMENT

16.	All business having been concluded, the meeting was adjourned at 11:40 a.m., in memory of Christie L. Babich, Father Michael Ribotta, Father John Maxwell and Carl Guidici.

Respectfully submitted,

s/ Janet S. Tarantino
Secretary of the District