19-2010

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

OCTOBER 22, 2010

 

The Board of Directors (Board) 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, October 22, 2010, at 10:00 a.m., President Boro presiding.

ROLL CALL

Directors Present (12): Directors Campos, Chu, Dufty, Kerns, Moylan, Newhouse Segal, Pahre, Sanders and Snyder; Second Vice President Eddie; First Vice President Reilly; President Boro

Directors Absent (7): Directors Brown, Cochran, Elsbernd, Grosboll, McGlashan, Sobel and Stroeh

Staff Present: General Manager Denis Mulligan; Auditor-Controller Joseph Wire; Acting District Engineer Ewa Bauer; District Secretary Janet Tarantino; Attorney David Miller; Deputy General Manager/Bridge Division Kary Witt; 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: David Hoffman, Marin County Bicycle Coalition

PLEDGE OF ALLEGIANCE

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

PUBLIC COMMENT

David Hoffman, Marin County Bicycle Coalition, reported that Cal Park Tunnel (Tunnel), a 1.1-mile rail/bicycle/pedestrian tunnel, will open on November 9, 2010, and that Lincoln Hill Pathway (Pathway), connecting downtown San Rafael with northern San Rafael, will also open. He stated that, with the opening of the Tunnel and the Pathway, larger numbers of bicyclists are expected to ride to the Larkspur Ferry Terminal. He reported that the Marin County Bicycle Coalition continues its work to increase bicycle parking, because bicycling provides the greatest possible number of “green trips.”

CONSENT CALENDAR

Directors STROEH/KERNS moved and seconded to approve the Consent Calendar. All items were approved by the following vote of the Board of Directors:

AYES (12): Directors Campos, Chu, Dufty, Kerns, Moylan, Newhouse Segal, Pahre, Sanders and Snyder; Second Vice President Eddie; First Vice President Reilly; President Boro
NOES (0): None
ABSENT (7): Directors Brown, Cochran, Elsbernd, Grosboll, McGlashan, Sobel and Stroeh

 

     
1. Approve the Minutes of the Following Meetings
     
  a. Finance-Auditing Committee/Committee of the Whole of October 7, 2010; and,
  b.

Regular Meeting of the Board of Directors of October 8, 2010.

Carried

     
2. Denial of Claims
     
  a.

Amended Claim of Irma Ramirez

Carried

  b. Insufficient Claim of Natalie Senkir

Carried

  c. Claim of Lisa Ann Tarufelli

Carried

  d. Amended Claim of Steven L. Shankerman

Carried

  e. Subrogation Claim of California Automobile Association (Insured: Doris Portner)

Carried

  f. Claim of Dena Shapiro

Carried

  g. Claim of Concepcion Maria Sanchez

Carried

  h. Claim of Aquilina Balingit

Carried

  i. Claim of Matthew Towers

Carried

  j. Claim of Kathryn Phillips

Carried

  k. Claim of IDEX Global Services, Inc.

Carried

  l. Amended Subrogation Claim of California State Automobile Association (Insured: Mirian Salazar)

Carried

  m. Claim of Adela Barillas

Carried

  n. Subrogation Claim of Travelers (Insured: Myrna Morse)

Carried

     
REPORTS OF OFFICERS
     
3.

General Manager’s Report

Presentation of Twenty-Five Year Service Award to Roger A. Erspan, Bus Operator, Bus Transit Division

President Boro presented a twenty-five year service award to Roger A. Erspan, Bus Operator, of the Bus Transit Division, and expressed his congratulations on behalf of the Board of Directors.

     
ATTORNEY’S REPORT
     
4.
Attorney David. Miller reported that all items contained in the Attorney’s Report are informational. Attorney Miller reported that a Closed Session will be held just prior to the conclusion of this meeting, to discuss the following items, listed on the Agenda as Items No. 6.B.1 and 6.B.2.:
     
  1. Conference with Legal Counsel – Pending Litigation
Pursuant to Government Code Section 54956.9(a)
Report of Hanson Bridgett, LLP
Grace Dammann et al vs. Golden Gate Bridge, Highway and Transportation District
     
  2. Conference With Legal Counsel – Anticipated Litigation
Pursuant to Government Code Section 54956.9(c)
Consideration of Initiation of Litigation (One Potential Case)
     
ENGINEER’S REPORT
     
5. Acting District Engineer Ewa Bauer reported that all items contained in the written Engineer’s Report are informational.
     
REPORT OF THE BUILDING AND OPERATING COMMITTEE/COMMITTEE OF THE WHOLE OF OCTOBER 21, 2010
     
6.

Authorize Execution of the Second Amendment to the Professional Services Agreement with Anchor QEA, L.P., Relative to Request for Proposals No. 2008-FT-3, Berth and Channel Maintenance Dredging Design and Permitting Support Services for the Larkspur Ferry Terminal, for Additional Support Services

Directors EDDIE/KERNS
Resolution No. 2010-089
authorizes execution of the Second Amendment to the Professional Services Agreement, with Anchor QEA, L.P., (formerly Anchor Environmental CA, L.P.), in the amount of $20,000.00, relative to Request for Proposals No. 2008-FT-3, Berth and Channel Maintenance Dredging Design and Permitting Support Services for the Larkspur Ferry Terminal, for assistance in obtaining permits and preparing plans and technical specifications for removal and repair of pilings at the Larkspur Ferry Terminal channel and berth; with the understanding that requisite funds are available in the FY 10/11 Ferry Transit Division Capital Budget.

Adopted

AYES (12): Directors Campos, Chu, Dufty, Kerns, Moylan, Newhouse Segal, Pahre, Sanders and Snyder; Second Vice President Eddie; First Vice President Reilly; President Boro
NOES (0): None
ABSENT (7): Directors Brown, Cochran, Elsbernd, Grosboll, McGlashan, Sobel and Stroeh

     
7.

Authorize Execution of Change Order No. 2 with Ice Floe, LLC, dba Nichols Brothers Boat Builders, Relative to Contract No. 2010-FT-1, Refurbishment of the M.V. Napa and the M.V. Chinook (M.V. Golden Gate) Ferries, for the Repair and Replacement of the Wet-Deck Structure on the M.V. Chinook (M.V. Golden Gate)

Directors EDDIE/MOYLAN
Resolution No. 2010-090
authorizes execution of Change Order No. 2, with Ice Floe, LLC, dba Nichols Brothers Boat Builders, in the amount of $257,846.25, relative to Contract No. 2010-FT-1, Refurbishment of the M.V. Napa and the M.V. Chinook (M.V. Golden Gate) Ferries; with the understanding that requisite funds are available in the FY 10/11 Ferry Transit Division Capital Budget.

Adopted

AYES (12): Directors Campos, Chu, Dufty, Kerns, Moylan, Newhouse Segal, Pahre, Sanders and Snyder; Second Vice President Eddie; First Vice President Reilly; President Boro
NOES (0): None
ABSENT (7): Directors Brown, Cochran, Elsbernd, Grosboll, McGlashan, Sobel and Stroeh

     
REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE OF SEPTEMBER 9, 2010
     
8.

Authorize Execution of the First Amendment to the Cooperative Agreement with the Metropolitan Transportation Commission Relative to the Procurement of Electronic Ticket Vending Machines and Related Hardware and Software Enhancements from Cubic Corporation dba Cubic Transportation Systems

Directors PAHRE/MOYLAN
Resolution No. 2010-091
authorizes execution of the First Amendment to the Cooperative Agreement, with the Metropolitan Transportation Commission, in the amount of $500,000.00, to increase the funds available for procurement of electronic ticket vending machines and related hardware and software enhancements through the regional ClipperSM contract; with the understanding that requisite funds are available in the FY 10/11 Ferry Transit Division Capital Budget.

Adopted

AYES (12): Directors Campos, Chu, Dufty, Kerns, Moylan, Newhouse Segal, Pahre, Sanders and Snyder; Second Vice President Eddie; First Vice President Reilly; President Boro
NOES (0): None
ABSENT (7): Directors Brown, Cochran, Elsbernd, Grosboll, McGlashan, Sobel and Stroeh

     
SPECIAL ORDER OF BUSINESS
     
9.

Authorize Execution of a Cooperative Agreement between the Golden Gate Bridge, Highway and Transportation District, the National Parks Conservancy and the National Park Service, Golden Gate National Recreation Area

President Boro reported that the above item, listed on the Agenda as Item No. 10.A., will be continued to a future date.

     
10.

Status Report on the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability

President Boro reported that the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability (Plan) was adopted by the Board at its Special Meeting of October 30, 2009. He stated that the District has made significant accomplishments since then. However, more remains to be done. He stated that this status report is intended as a forum for discussion of the issues.

In a memorandum to the Board, Auditor-Controller Joseph Wire and General Manager Denis Mulligan reported on the status of the Plan. The staff report stated that the Plan was recommended by the Financial Planning Advisory Committee (Advisory Committee), whose mission was to create a plan to address the District's projected financial deficit that resulted from the global economic recession of 2008 and 2009. The staff report noted that individual initiatives within the Plan must be approved by the Board prior to implementation. The staff report added that the Board directed monitoring, review and annual updating of the Plan as part of the regular financial planning cycle. The staff report also stated that the Plan was designed to achieve deficit reduction and to provide clear guidance to staff.

The staff report stated that the Plan presents initiatives in the following three phases:

Phase I – Initiatives that staff either is working on now or will begin soon;

Phase II – Initiatives that staff are to work on once staff time has become available due to the completion of the majority of Phase I initiatives; and,

Phase III – Initiatives that will begin in later years because there are operational, practical or policy concerns that led the Committee to focus these initiatives for the later phase of the Plan.

The staff report also provided a list, entitled Appendix A, of the Guiding Principles and Priority Criteria used by the Advisory Committee. A copy of the staff report is available from the Office of the District Secretary and on the District’s web site.

The Minutes of the October 30, 2009 Special Meeting of the Board of Directors provide a detailed discussion of each of the initiatives contained within the Plan.

At the meeting, Mr. Mulligan stated that the Plan helps the District achieve its objectives and prioritize projects, while recognizing limited staff resources.

Mr. Wire stated that, at the time of the October 30, 2009, Special Board Meeting, the District’s deficit was projected to be $132 million over the five-year period ending FY 14/15. That projection is now $68 million, as a result of implementing several Plan initiatives and other factors.

Mr. Wire reviewed the Plan format, and the Financial Plan Status Report (Appendix B). He pointed out that a list of completed initiatives, including a short description and the projected annual deficit impact for each, appears on the last page of Appendix B.

Mr. Wire discussed the initiatives one by one, noting that the only column that has changed since the Plan was adopted is the “Status of Project to Date,” in order to maintain consistency. He also indicated that it would be unlikely that all initiatives would be put into place. Appendix B of the staff report provided descriptions of the status of initiatives that remain to be implemented or are currently underway.

Discussion ensued, including the following comments and inquiries:

  • Director Newhouse Segal inquired as to an example of a savings goal that is underway but not yet completed. In response, Mr. Wire stated that one example is installation of ticket vending machines for ferry revenue collection. This project is underway but not yet completed.
  • Director Chu inquired as to whether figures for completed initiatives are included in the District’s 10-year projections. In response, Mr. Wire stated that only the completed initiatives on the last page of Appendix B are included in the current deficit projection.
  • Director Sanders made the following comments and inquiry:
    • She commented that providing incentive to use vacation time is a better way to structure employee time off during holidays than is a “furlough.”
    • She inquired as to the nature of the conflict between implementation of sidewalk access fees (Initiative 31), the Golden Gate Bridge Main Cable Access System Project and the Golden Gate Bridge Seismic Retrofit Project. In response, Mr. Mulligan stated that, during these projects, both the east and west sidewalks will be closed for periods of time. Sidewalks will be narrowed during work on the main cable. He stated that it may not be desirable to reduce access to sidewalks and impose a new access fee and at the same time. He added that, should the Board so desire, the order in which the initiatives are carried out can be changed.
    • She commented that staff deserves to be complimented on the progress made in reducing the projected deficit.
  • Director Snyder made the following comments and inquiries:
    • He inquired as to whether the initiatives that remain incomplete will require Board approval. In response, Mr. Mulligan stated that the individual initiatives would require Board action to move forward.
    • He commented that he did not like the idea of having ferries closed during holidays. In response, President Boro reminded him that the Board has not yet made a decision.
    • He requested that, for future status reports on the Plan, Appendix B be presented without gray shading. In response, Mr. Mulligan stated that future status reports would exclude gray shading.
    • He stated that it would be prudent to avoid gray shading in proposals to increase tolls. He added that all-electronic tolling should be analyzed as soon as possible. In response, Mr. Mulligan stated that many different toll amounts can be charged without difficulty using all-electronic tolling. He indicated that the Board could make a policy decision to establish higher tolls at shorter intervals. He stated that, historically, after an increase has been put into place, the District allows a significant period of time to pass before imposing another increase.
  • Director Newhouse Segal inquired as to whether all-electronic tolling would be considered by the Board in the near future. Mr. Wire responded affirmatively.

[Directors Campos and Dufty departed at this time.]

  • Director Moylan commented that all-electronic tolling would be an inconvenience to San Francisco drivers. He added that the District’s toll takers do an excellent public relations job.
  • First Vice President Reilly commented that she had served on the Advisory Committee and that the Plan is an excellent one. With it, the District can better predict the outcome of an action. She opined that other public agencies should also prepare long-term financial projections.
  • Director Kerns commented that the Plan is an excellent one, and inquired as to what effect the Golden Gate Bridge Physical Suicide Deterrent System Project would have on financial projections. In response, Mr. Wire stated that Board policy calls for the necessary funding to be found elsewhere and, if successful, that project would have no financial impact on the District.
  • Director Eddie commented that the Plan has already benefitted the District. He indicated his opinion that all governmental agencies should have a similar financial plan for their futures.
  • President Boro commented that the General Manager, Auditor-Controller and all District staff who have worked on the Plan, should be complimented because of its success to date. He stated that FY 10/11 and FY 11/12 are likely to see further improvements, and thanked District staff and the Board for focusing on the long-term welfare of the District.
     
11.

Closed Session

Attorney David Miller, at the request of President Boro, stated that the Board of Directors would convene in Closed Session, to discuss the matters listed under Closed Session as outlined above in Item No. 4.

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 had met in Closed Session, as permitted by the Brown Act, to receive a status report and discuss the matters listed above. No action was taken.

     
ADJOURNMENT
     
12. All business having been concluded, the meeting was adjourned at 11:35 a.m., in memory of Arthur Scott, Jenelie Legaspi, Ly To Hanh, Vivian Claire Fonseca, Arthur Knutson and John Wallace.
     
     

Attachments:

Appendix A: Guiding Principles and Priority Criteria
Appendix B: Financial Plan Status Report Summary


Respectfully submitted,

s/ Janet S. Tarantino
Secretary of the District