March 25, 2010

 

REPORT OF THE BUILDING AND OPERATING COMMITTEE

 

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, March 25, 2010, at 10:00 a.m., Chair Eddie presiding.

Committee Members Present (7): Chair Eddie; Vice Chair Moylan; Directors Cochran, Newhouse Segal, Reilly and Stroeh; President Boro (Ex Officio)

Committee Members Absent (1): Director McGlashan

Other Directors Present (2): Directors Grosboll 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; Deputy General Manager/Administration and Development Z. Wayne Johnson; Public Affairs Director Mary C. Currie; Director of Bus Maintenance Gene Walker; Marine Projects Manager/Ferry Transit Division Christian N. Stark; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Patsy Whala

Visitors Present: None

   
1.

Authorize Award of Contract No. 2010-BT-8, Lease of Bus Tires, to The Goodyear Tire & Rubber Company

In a memorandum to Committee, Deputy General Manager/Bus Transit Division Teri Mantony and General Manager Celia Kupersmith reported on staff’s recommendation to authorize award of a contract to The Goodyear Tire & Rubber Company, in the amount not to exceed $1,965,942.06, for a five-year term, commencing April 1, 2010, to provide leasing of bus tires, including tire service personnel and wheel refurbishment, for the District’s bus fleet.

The report stated that the current contract for leasing of bus tires for the District’s bus fleet expires on March 31, 2010. On December 22, 2009, the District issued Request for Proposals No. 2010-BT-8, Lease of Bus Tires, and received proposals from two companies by the deadline date of February 2, 2010. The Evaluation Committee unanimously determined that The Goodyear Tire & Rubber Company (Goodyear) was the highest ranked firm, having a lower Total Contract Price. The DBE Program Administrator determined that Goodyear has complied with the Disadvantage Business Enterprise (DBE) requirements applicable to this Contract and, at this time, no DBE participation is anticipated during the performance of these services. 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, Ms. Kupersmith stated that it is more cost-effective to lease bus tires, which is the standard practice in the transit industry.

Discussion ensued, including the following comments and inquiries:

  • Director Grosboll made the following comments and inquiries:
    • He inquired as to what is done with the tires that are no longer used for the District’s bus fleet. In response, Mr. Walker stated that the tires are returned to Goodyear for processing as retread tires and then sold to other transit agencies. Mr. Walker noted that once a tire has reached its maximum lifetime, the tire is disposed of according to environmental regulations.
    • He inquired as to the reason why the District does not use retread tires. In response, Mr. Walker stated that, since Golden Gate Transit Bus Routes are mostly highway miles, the heat generated from faster bus speeds could cause tire failure. Mr. Walker noted that the issue would not be losing control of the bus as retreads are installed in the rear. However, he pointed out that unloading passengers onto the shoulder of the road would have an influence on liability, and also that a blown-out tire causes extensive body damage to the bus.
  • Director Newhouse Segal inquired as to which transit agencies use retread tires. In response, Mr. Walker stated that other Goodyear customers can use retread tires. Mr. Walker also stated that an example would be San Francisco Municipal Transportation Agency (Muni) and Alameda-Contra Costa (AC) Transit, whose buses travel mostly on city streets and at lower bus speeds. Ms. Kupersmith added that a transit agency with 10 buses or less will purchase bus tires as opposed to leasing bus tires.
  • Director Cochran commented that the transit agencies that purchase tires must also be concerned with proper disposal.

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/COCHRAN 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 the award of Contract No. 2010-BT-8, Lease of Bus Tires, to The Goodyear Tire & Rubber Company, Akron, Ohio, in an amount not to exceed $1,965,942.06, for a five-year term, commencing April 1, 2010, to provide leased bus tires, including tire service personnel and wheel refurbishment, for the District’s bus fleet; with the understanding that requisite funds are available in the FY 09/10 Bus Transit Division Operating Budget for the first three months of the Contract, and that requisite funds will be included in the subsequent fiscal years accordingly.

Action by the Board at its meeting of March 26, 2010 – Resolution
NON-CONSENT CALENDAR

AYES (6): Chair Eddie; Vice Chair Moylan; Directors Cochran, Newhouse Segal, Reilly and Stroeh
NOES (0): None
ABSENT (2): Director McGlashan; President Boro (Ex Officio)

   
2.

Approve Actions Relative to the Award of Contract No. 2010-FT-1, Refurbishment of the M.V. Napa and the M.V. Chinook Ferries, to Ice Floe, LLC, dba Nichols Brothers Boat Builders

In a memorandum to Committee, Marine Projects Manager/Ferry Transit Division Christian Stark, Deputy General Manager/Ferry Transit Division James Swindler and General Manager Celia Kupersmith reported on staff’s recommendation to authorize award of a contract to Nichols Brothers Boat Builders, in the amount of $6,910,536.00, for the refurbishment and repowering of the M.V. Napa and the M.V. Chinook; and, approve all other related items.

The report stated that the Board of Directors, by Resolution No. 2008-102 at its meeting of November 21, 2008, authorized the acquisition of two existing high-speed passenger ferries, the M.V. Chinook and the M.V. Napa (formerly the M.V. Snohomish), from Washington State Ferries, in Olympia, WA. The District intends to repower the M.V. Chinook and the M.V. Napa with new propulsion systems that exceed Federal and State emission standards, in accordance with Board policy, as well as refurbish the interiors and exteriors.

The report also stated on December 29, 2009, the District issued Contract No. 2010-FT-1, Refurbishment of the M.V. Napa and the M.V. Chinook Ferries, and four bids were received by the deadline date of March 9, 2010. Following review of the bids, staff determined that the lowest responsible bidder is Ice Floe, LLC, dba Nichols Brothers Boat Builders (Nichols Bros.). The DBE Program Administrator determined that Nichols Bros., has complied with the Disadvantage Business Enterprise (DBE) requirements applicable to this Contract and, at this time, no DBE participation is anticipated during the performance of these services.

The report further stated that, in order to avoid any unnecessary delays, staff recommends that the Board delegate authority to the General Manager to execute any necessary change orders within the requested contingency, with the understanding that individual change orders in excess of $100,000.00 will require the prior concurrence of the Board President and the Chair of the Building and Operating Committee. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

[President Boro arrived at 10:20 a.m.]

At the meeting, Mr. Swindler summarized the staff report and stated that the work includes repowering and significant interior upgrades, as well as upgrades to the machinery. Mr. Swindler reiterated that the District will purchase Tier II minus Twenty engines which will be 20% cleaner and exceed environmental regulations. Mr. Swindler also stated that the District and MTU/Detroit Diesel will perform a biodiesel experiment to make the engines even cleaner. He explained the importance that the General Manager be authorized to approve change orders to the maximum contingency fund, which would give the District the ability to approve additional work that may be needed and keep the project moving forward. He noted that the shipyard could assert a claim on the District if the project is bogged down with delays. Ms. Kupersmith emphasized that the procurement and refurbishment of these two ferries are within the budget and commended staff for this accomplishment.

Discussion ensued, including the following comments and inquiries:

  • Director Newhouse Segal requested clarification on the General Manager approving change orders of up to $100,000.00. In response, Ms. Kupersmith stated that this item delegates authority to the General Manager to approve change orders up to $100,000.00, with funds that have been approved by the Board and included in the project budget; and that any individual change order exceeding that amount will require the concurrence of the President of the Board and the Chair of the Building and Operating Committee.
  • Director Grosboll made the following comments and inquiries:
    • He inquired as to whether the District’s clean air standards are comparable to the clean air standards for other ferry agencies in the Bay Area. In response, Mr. Swindler stated that upon completion of the repowering of the M.V. Napa and the M.V. Chinook, the District will have the cleanest engines operating in the Bay Area for that size of ferry.
    • He inquired as to the timeline for when the project would begin and end. In response, Mr. Stark stated that the project will start sometime in April 2010 and will be completed in April or May 2011.
  • Director Cochran inquired as to the process for renaming the M.V. Chinook to the M.V. Golden Gate. In response, Ms. Kupersmith stated that the process requires Board action and that the proposed recommendation for the award of Contract No. 2010-FT-1 can be amended for the purpose of adding the approval of renaming the M.V. Chinook to the M.V. Golden Gate. Ms. Kupersmith noted that, if the M.S. Sonoma is retired someday, staff will present a recommendation to the Board to approve the renaming the M.V. Golden Gate to the M.V. Sonoma, in accordance with District practice to name a ferry for each county represented on the Board.

A motion was made by Director COCHRAN and seconded by Director MOYLAN to amend the staff’s recommendation to include approval of the renaming of the M.V. Chinook to the M.V. Golden Gate.

Carried

Staff recommended and the Committee concurred by motion made and seconded by Directors STROEH/COCHRAN 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 award of Contract No. 2010-FT-1, Refurbishment of the M.V. Napa and the M.V. Chinook Ferries, as follows:

  a.
Authorize the award of Contract No. 2010-FT-1 to Ice Floe, LLC, dba Nichols Brothers Boat Builders, Freeland, WA, in the amount of $6,910,536;
  b.
Establish a contingency fund in the amount of $414,632.00, to cover anticipated sales tax, delivery costs and any unanticipated items that may be discovered once work commences;
  c.
Authorize payment of an amount not to exceed $200,000.00, for reimbursement of vessel delivery costs and payment of an amount not to exceed $200,000.00 for potential sales tax, consistent with bid specifications;
  d.
Authorize the General Manager to approve change orders to Contract No. 2010-FT-1, up to the maximum of the available contract contingency, with the understanding that any individual change order exceeding $100,000.00 requires the concurrence of the President of the Board and the Chair of the Building and Operating Committee; and,
  e.
Approve the renaming of the M.V. Chinook to the M.V. Golden Gate;
 

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 March 26, 2010 – Resolution

NON-CONSENT CALENDAR

AYES (7): Chair Eddie; Vice Chair Moylan; Directors Cochran, Newhouse Segal, Reilly and Stroeh; President Boro (Ex Officio)
NOES (0): None
ABSENT (1): Director McGlashan

   
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 March 3, 2010, Sonoma-Marin Area Rail Transit (SMART) Executive Board Meeting, March 4, 2010, SMART Citizens Oversight Committee, March 10, 2010, SMART Operations Committee Meeting and the March 17, 2010, SMART District Board 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 March 17, 2010, including the discussion regarding the rail car design and the SMART Board’s intent to issue a Request for Proposals in April 2010. He talked about the size limitations of a rail car in that seat pitch (amount of legroom), seat reclinability and seat width will have an impact on the number of seats that are installed. He also talked about the challenges in deciding how many bicycle racks will be installed in each car as a row of seats is removed for each one.
  • President Boro stated that the SMART Board is projecting that commuters will be riding the train five days a week, 48 weeks per year, with the average time ridden on the train by a passenger to be 1 to 1-1/2 hours. He noted that the target passenger will take the train because of the amenities being provided, such as restrooms, Wifi hookups and a snack bar. He stated that most amenities will not be costly.

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. Mr. Mulligan stated that a Notice of Determination was filed in San Francisco and Marin counties relative to the Final Environmental Impact Report and Environmental Assessment and Section 4(f) Evaluation with Finding of No Significant Impact (FEIR/EA) for the Golden Gate Bridge Physical Suicide Deterrent System Project. He noted that there were no challenges to the document or lawsuits filed within the 30-day statute of limitations; therefore with respect to State of California law, the FEIR/EA is cleared.

Action by the Board – None Required

   
5.

Public Comment

There was no public comment.

   
6.

Adjournment

All business having been concluded, the meeting was declared adjourned at 10:25 a.m.

   

 

Respectfully submitted,

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