February 25, 2010

REPORT OF THE BUILDING AND OPERATING COMMITTEE/
COMMITTEE OF THE WHOLE

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

Honorable Members:

A meeting of the Building and Operating Committee was held in the Board Room, Administration Building, Toll Plaza, San Francisco, CA, on Thursday, February 25, 2010, at 10:00 a.m., Chair Eddie presiding.

Committee Members Present (7): Chair Eddie; Vice Chair Moylan; Directors McGlashan Newhouse Segal, Reilly and Stroeh; President Boro (Ex Officio)
Committee Members Absent (1): Director Cochran
Other Directors Present (4): Directors Elsbernd, Kerns, Pahre and Snyder

Committee of the Whole Members Present (11): Directors Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro

Committee of the Whole Members Absent (8): Directors Brown, Campos, Chu, Cochran, Dufty, Grosboll, Sanders and Sobel

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; 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; 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


1.	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 In a memorandum to Committee, Deputy District Engineer Ewa Bauer, District Engineer Denis Mulligan, and General Manager Celia Kupersmith reported on staff’s recommendation to 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 (RFP) No. 2008-FT-3, Consultant to Provide Berth and Channel Maintenance Dredging Design and Permitting Support Services for the Larkspur Ferry Terminal, to provide additional services. The report stated that in October 2007, the Board of Directors (Board) authorized execution of a Professional Services Agreement with Anchor QEA, L.P. (formerly known as Anchor Environmental CA, L.P.), to assist the District with permitting and design work, and to provide technical support for the next cycle of maintenance dredging of the Larkspur Ferry Terminal berths, turning basin and channel. The project, which was originally planned to be performed in two phases: 1) maintenance berth dredging in 2008; and, 2) channel/turning basin dredging in 2010, was postponed because bathymetric surveys performed in 2007 and 2008 indicated that the amount of sedimentation did not warrant dredging at that time. The report also stated that a subsequent bathymetric survey performed in 2009 indicated that the sedimentation is now at a level requiring dredging. Staff has determined that it would be advantageous to the District that the two phases be combined into one construction dredging project. The postponement of the original project allowed the District to defer the construction costs; however, additional work for environmental documentation, permitting and design is now needed to meet current regulatory requirements, at an additional cost. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site. At the meeting, Mr. Mulligan provided an overview of the staff report, stating that the District typically dredges the two-mile long channel, turning basin and berths every three to four years. Discussion ensued, including the following inquiry: Director Reilly inquired regarding the funding for the project. In response, Mr. Mulligan stated that the District received 80% funding from the Federal Transit Administration. Also, Mr. Mulligan informed the Board that the most recent Federal Water Resources Development Act bill includes language for the U.S. Army Corps of Engineers (Corps) to do a study to ascertain whether the Corps should assume responsibility for dredging the Larkspur Ferry Channel. Mr. Mulligan noted that, once the study is approved, the District could be eligible to obtain 100% funding through Congress for future dredging of the Channel. Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/MCGLASHAN to forward the following recommendation to the Board of Directors for its consideration: RECOMMENDATION The Building and Operating Committee recommends that 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, 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. Action by the Board at its meeting of February 26, 2010 – Resolution NON-CONSENT CALENDAR AYES (11): Directors Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

2.	Approve Actions Relative to the Procurement of Equipment and Services for the Ferry Electronic Fare System Project In a memorandum to Committee, Electronic Revenue Collection Program Manager David Dick, Deputy General Manager/Ferry Transit Division James Swindler, Auditor-Controller Joseph Wire and General Manager Celia Kupersmith reported on staff’s recommendation to approve actions relative to the procurement of equipment and services for the Ferry Electronic Fare System Project. The report stated that the District has identified a $132 million projected deficit over the next five years, and the Board approved the FY 09/10 Financial Plan for Achieving Long-Term Financial Stability (Plan) at its meeting of October 30, 2009, identified 33 initiatives, that, once implemented, will help restore the District to stable financial footing. The report stated that Phase I of the Plan includes Initiative No. 5, which calls for automated ferry revenue collection. The report emphasized that it is critical that the District’s electronic ticket vending machines (TVM) interact with the regional TransLink® system, the hardware and software for which is provided by Cubic Corporation, dba Cubic Transportation Systems (Cubic) through its Contract with the Metropolitan Transportation Commission (MTC). The report noted that it is in the District’s best interest to procure electronic TVMs manufactured by Cubic. State law permits an exception from the competitive bidding requirement when such a process would be unavailing and not in the public agency’s best interests. MTC is willing to enter into a Cooperative Agreement with the District, whereby MTC will issue and administer a Change Order to its Contract with Cubic for the procurement of the electronic TVMs, and the District will reimburse MTC for its administration costs in the amount not to exceed $75,000.00. The Consultant, Booz Allen Hamilton, was engaged by the District to provide professional services related to the support for the development, design and implementation of an automated fare collection system at the Ferry Transit Division and additional support services are necessary for this project. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site. At the meeting, Mr. Wire reiterated that the 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 noted that the San Francisco Municipal Transportation Agency (SFMTA) is in the process of procuring TVMs from Cubic through a contract with MTC. 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. He also stated that staff anticipates that the system will go live in approximately one year to 15 months. Discussion ensued, including the following comments and inquiries: Director Kerns inquired as to where the TVMs will be positioned at the Larkspur Ferry Terminal (LFT). In response, Mr. Wire stated that there will be four TVMs located at the LFT, two at each entrance. Director Snyder commented that bus driving times could be more efficient if passengers used only tickets; thereby eliminating the time it takes to feed money into the farebox, and inquired if similar technology can be implemented on the District’s bus system. In response, Mr. Wire answered that there are no plans to use the technology on the bus system; however, there are cashless systems in use on buses in other countries. President Boro inquired as to what MTC’s administrative work will entail that justifies the expense of $75,000.00. In response, Mr. Wire stated that MTC will bill the District only for the time that is used and that staff anticipates that the cost could be lower. Chair Eddie inquired as to the cost of the additional support services necessary for this project provided by Booz Allen Hamilton. In response, Mr. Wire provided details of the Professional Services Agreement (Agreement) with Booz Allen Hamilton and stated that the additional work has been negotiated in an amendment to the Agreement at a cost that staff has determined to be fair and reasonable. Public Comment Marina Secchitano, defended the seven Ferry Ticket Agent positions that may be impacted due to the automation of the ferry revenue collection systems 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. Discussion ensued, including the following comments and inquiries: Director Pahre directed staff to report back to the Board on the impact to customer service and current employee positions as relates to the automation of the ferry revenue collection on. In response, Ms. Kupersmith that approval of the item before the Committee today is not taking any action to lay off any potential positions which could be affected by this automation. Ms. Kupersmith stated that automation is consistent with the Plan, and that that sometime next year staff may present to the Board a recommendation for any possible changes to personnel as a result of this project. She recapped the District’s policy regarding employee layoffs and repositioning. In addition, Mr. Miller stated that there will be appropriate meet and confer discussions with the Inlandboatmen’s Union of the Pacific relevant to the impact on the employee positions. Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/KERNS to forward the following recommendation to the Board of Directors for its consideration: RECOMMENDATION The Building and Operating Committee recommends that the Board of Directors approve 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. Action by the Board at its meeting of February 26, 2010 – Resolution NON-CONSENT CALENDAR AYES (11): Directors Elsbernd, Kerns, McGlashan, Moylan, Newhouse Segal, Pahre, Snyder and Stroeh; Second Vice President Eddie; First Vice President Reilly; President Boro NOES (0): None

3.	Status Report from District Appointees on Sonoma-Marin Area Rail Transit (SMART) Board The Committee was provided with a copy of the agenda items and staff reports for the January 10, 2010, Sonoma-Marin Area Rail Transit (SMART) District Board Meeting, January 20, 2010, SMART Executive Committee Meeting, February 10, 2010, SMART Operations Committee Meeting Agenda and the February 3, 2010, Notice of Cancellation for SMART Real Estate Committee Meeting. Copies of these items are available in the Office of the District Secretary, as well as on the District’s web site. The following District Directors, who are also members of the SMART Board of Directors (SMART Board), made the following statements: Director Eddie reported on the meeting of February 17, 2010, including the discussion regarding whether or not to implement the project in phases and the exchange of ideas regarding the rail car design. President Boro stated that subsequent meetings were held with the communities along the rail line to discuss rail station design and to address other issues, such as the impact on existing transit centers. Director Pahre, stated that the public will find the most up-to-date information, such as the rail car specifications, on SMART’s web site. Director McGlashan, member of the SMART Board, commented that he attended a meeting with a construction investment banking group about creating a public/private partnership, which may be a way to manage the funding issues. Director McGlashan stated that the plan has enough merit to discuss its feasibility with SMART stakeholders, including the District. Action by the Board – None Required

4.	Status Report on Engineering Projects In a memorandum to Committee, Deputy District Engineer Ewa Bauer, District Engineer Denis Mulligan and General Manager Celia Kupersmith reported on current engineering projects. A copy of the report is available in the Office of the District Secretary and on the District’s web site. Action by the Board – None Required

5.	Public Comment Public comment was received relative to Agenda Item No. 2, Approve Actions Relative to the Procurement of Equipment and Services for the Ferry Electronic Fare System Project, as noted above.

6.	Adjournment All business having been concluded, the meeting was declared adjourned at 10:40 a.m.

Respectfully submitted,

/s/ James C. Eddie, Chair
Building and Operating Committee