September 23, 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/Committee of the Whole was held in the Board Room, Administration Building, Toll Plaza, San Francisco, CA, on Thursday, September 23, 2010, at 10:10 a.m., Chair Eddie presiding.

Committee Members Present (6): Chair Eddie; Vice Chair Moylan; Directors Cochran, Newhouse Segal, Reilly and Stroeh
Committee Members Absent (2): Director McGlashan; President Boro (Ex Officio)
Other Directors Present (5): Directors Elsbernd, Kerns, Pahre, Sobel and Snyder

Committee of the Whole Members Present (11): Directors Cochran, Elsbernd, Kerns, Moylan, Newhouse Segal, Pahre, Snyder, Sobel and Stroeh; Second Vice President Eddie; First Vice President Reilly
Committee of the Whole Members Absent (8): Directors Brown, Campos, Chu, Dufty, Grosboll, McGlashan and Sanders; President Boro (Ex Officio)

Staff Present: General Manager Denis Mulligan; Acting District Engineer Ewa Bauer; Auditor-Controller Joseph Wire; Secretary of the District Janet Tarantino; Attorney David Miller; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Ferry Transit Division James Swindler; Deputy General Manager/Administration and Development Z. Wayne Johnson; Executive Assistant to the General Manager Amorette Ko; Assistant Clerk of the Board Lona Franklin

Visitors Present: None

     
1.

Approve Actions Relative to the Award of Contract No. 2011-FT-3, Larkspur Ferry Terminal Utility Rehabilitation, to JMB Construction, Inc.

In a memorandum to Committee, Acting District Engineer Ewa Bauer and General Manager Denis Mulligan reported on staff’s recommendation to authorize award of a contract to JMB Construction, Inc., in the amount of $844,000.00, for replacement of the entire sewer and bilge systems that service ferry boats at the terminal berths; and, approve all other related actions.

The staff report described how the existing systems at the Larkspur Ferry Terminal are deteriorated and need to be rehabilitated to maintain efficient ferry transit operation. The report noted that in September 2007, the main fuel line to the berths was removed and replaced. The report provided the details of the scope of work.

The staff report stated that Contract No. 2011-FT-3, was advertised on July 27, 2010, and two bids were received, opened and publicly read by the Secretary of the District. Staff determined that the lowest bidder, JMB Construction, Inc. (JMB Construction), is responsive and responsible. The DBE Program Administrator has determined that JMB Construction has complied with the Disadvantaged Business Enterprise (DBE) requirements and that no DBE participation is anticipated during the performance of the contract.

The report also stated that a budget increase in the FY 09/10 Ferry Transit Division Capital Budget, in the amount of $625,000.00, is required, to be funded with Federal Transit Administration (FTA) grant funds and District Reserves. The total project budget will be funded as follows: $1,140,000.00 FTA grant funds and $285,000.00 District Reserves. The report noted that, since this project was originally funded with $800,000.00 District Reserves and only $285,000.00 is required as a local match, $515,000.00 will be returned to District Reserves. A copy of the staff report is available in the Office of the District Secretary and on the District’s web site.

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. 2011-FT-3, Larkspur Ferry Terminal Utility Rehabilitation, as follows:

 
a.
Authorizes award of Contract No. 2011-FT-3 to JMB Construction, Inc., South San Francisco, CA, in the amount of $844,000.00;
 
b.
Establishes a Contingency Fund in the amount of $84,400.00;
 
c.
Establishes a total Project budget of $1,425,000.00, to be funded with $1,140,000.00 Federal Transit Administration grant funds (80%) and $285,000.00 District Reserves (20% ); and,
  d.

Authorizes a budget increase in the FY 10/11 Ferry Transit Division Capital Budget in the amount of $625,000.00, subject to the concurrence of the Finance-Auditing Committee at its meeting of September 23, 2010.

Action by the Board at its meeting of September 24, 2010 – Resolution
NON-CONSENT CALENDAR

     
  AYES (11): Chair Eddie; Vice Chair Moylan; Directors Cochran, Elsbernd, Kerns, Newhouse Segal, Pahre, Reilly, Snyder, Sobel and Stroeh;
NOES (0): None
     
2.

Approve Actions Relative to the Award of Sole Source Contract No. 2011-FT-7, Parts and Services for the Overhaul of the M.V. Mendocino Main Engines, to Valley Power Systems North, Inc.

n a memorandum to Committee, Marine Projects Manager/Ferry Transit Division Christian Stark, Deputy General Manager/Ferry Transit Division James Swindler and General Manager Denis Mulligan reported on staff’s recommendation to authorize award of a contract to Valley Power Systems North, Inc. (VPSNI), in the amount of $209,613.09, for parts and services for the overhaul of the M.V. Mendocino main engines; and, approve all other related actions.

The staff report stated that the four engines on the District’s high-speed ferry, M.V. Mendocino, have been in service for approximately 8,000 hours and are in need of a regularly scheduled overhaul to ensure reliable operation. The report provided the details of the scope of work, including the removal and replacement of several engine sub-components.

The report stated that use of a factory-authorized dealership to install the manufacturer’s parts would reduce the District’s exposure to liability, because the District will be able to secure a factory warranty on progressive damage in addition to a parts and labor warranty. Moreover, complete replacement of an engine is very costly, but could be covered by the progressive damage warranty, which requires use of a factory-certified mechanic from factory-authorized dealership.

The report also stated that VPSNI has submitted a proposal to the District and staff determined that the price is fair and reasonable. State law permits an exception from the competitive bidding requirement when such a process would be unavailing and not in a public agency’s best interests. Because VPSNI is uniquely positioned to provide the necessary work, a competitive bidding process would serve no useful purpose.

The report further stated that this project is included in the FY 09/10 Ferry Transit Division Capital Budget, and is funded with 88.53% FTA funds and 11.47% District reserves for the major engine overhaul, as well as other main propulsion overhaul items. 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. Swindler briefly summarized the staff report, stating that the M.V. Mendocino engines have been in service for approximately two years, and are now due for the first scheduled maintenance.

Discussion ensued, including the following inquiries:

  • Director Kerns inquired as to the reason for requesting a Contingency Fund of more than the usual 10%. In response, Mr. Swindler stated that, when engines are overhauled, unforeseen problems are often found, requiring additional repairs. He stated that the cost of parts is expected to be approximately $140,000.00 and the cost of labor approximately $70,000.00.
  • Director Pahre made the following comment and inquiry:
    • She inquired as to whether 8,000 hours is the standard running time before an engine requires overhaul. In response, Mr. Swindler answered affirmatively, adding that it is the amount of time recommended by the manufacturer.
    • She commented that the manufacturer requires overhaul after 8,000 hours and that parts must be purchased only from the manufacturer. In response, Mr. Swindler stated that it is necessary to follow the manufacturer’s recommendation in order to keep the warranties in force on the parts and labor used for the overhaul.
  • Director Eddie inquired as to how the 8,000-hour requirement was determined. In response, Mr. Swindler stated the requirement is driven by regulations. He added that the engines are scheduled for overhaul on a calendar basis, and are expected to run well for approximately ten years.
  • Director Cochran stated his estimate that the engines would then have run for approximately 240,000 miles.

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 Sole Source Contract No. 2011-FT-7, Parts and Services for the Overhaul of the M.V. Mendocino Main Engines, as follows:

  a.
Authorizes the award of Sole Source Contract No. 2011-FT-7 to Valley Power Systems North, Inc., Hayward, CA, in the amount of $209,613.09;
  b.
Establishes a Contingency Fund in the amount of $30,386.91, to cover unanticipated items that may be discovered once work commences;
  c.
Establishes a total Project budget of $240,000.00, to be funded with $212,472.00 Federal Transit Administration grant funds (88.53%) and $27,528.00 District Reserves (11.47%);
  d.
Authorizes the General Manager to approve change orders to Contract No. 2011-FT-7, up to the maximum of the available Contingency Fund; and,
  e.

Authorizes a budget increase in the FY 10/11 Ferry Transit Division Capital Budget in the amount of $90,000.00, subject to the concurrence of the Finance-Auditing Committee at its meeting of September 23, 2010.

Action by the Board at its meeting of September 24, 2010 – Resolution
NON-CONSENT CALENDAR

     
  AYES (11): Chair Eddie; Vice Chair Moylan; Directors Cochran, Elsbernd, Kerns, Newhouse Segal, Pahre, Reilly, Snyder, Sobel and Stroeh;
NOES (0): None
     
3.

Ratify the Action of the General Manager Relative to the Issuance of Change Orders to Contract No. 2010-FT-23, Routine Dry Docking of the M.V. Mendocino, with Bay Ship & Yacht, Co., for Additional Work

In a memorandum to Committee, Marine Projects Manager/Ferry Transit Division Christian Stark, Deputy General Manager/Ferry Transit Division James Swindler and General Manager Denis Mulligan reported on staff’s recommendation to ratify the issuance of change orders for additional work, relative to Contract No. 2010-FT-23, Routine Dry Docking of the M.V. Mendocino, with Bay Ship & Yacht Co.

The staff report stated that emergency repairs required for the M.V. Mendocino were reported to the Board on August 13, 2010. The U.S. Coast Guard, following negotiation with the District of a repair plan and schedule, agreed to allow temporary repairs provided that permanent repairs would be undertaken within three weeks thereafter, in conjunction with the regularly scheduled annual routine dry docking of the vessel.

The staff report provided background information regarding the award of Contract No. 2010-FT-23 to Bay Ship & Yacht Co. for routine dry docking. In addition, the report stated that permanent repairs to replace three main propulsion exhaust system brackets, required pursuant to the District’s agreement with the U.S. Coast Guard, totaled $73,552.00. Furthermore, once the vessel was placed in dry dock, a number of other areas were identified for repair and maintenance, in the amount of $63,871.49.

The staff report stated that the permanent repair work was undertaken as change orders to Contract No. 2010-FT-23, in order to avoid disruption to passenger service and to comply with Coast Guard requirements. In addition, the report provided a list of the change orders and the amount of each. 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. Swindler briefly summarized the staff report, stating that, two weeks before the M.V. Mendocino’s scheduled routine dry docking, a crack developed in the hull and the vessel took on water. It was required to be repaired and returned to service quickly in order to maintain ferry passenger service.

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 ratify the actions of the General Manager relative to the issuance of change orders to Contract No. 2010-FT-23, Routine Dry Docking of the M.V. Mendocino, with Bay Ship & Yacht Co., in the amount of $137,423.49, for additional work, with the understanding that requisite funds are available in the FY 10/11 Ferry Transit Division Operating Budget.

Action by the Board at its meeting of September 24, 2010 – Resolution
NON-CONSENT CALENDAR

AYES (11): Chair Eddie; Vice Chair Moylan; Directors Cochran, Elsbernd, Kerns, Newhouse Segal, Pahre, Reilly, Snyder, Sobel and Stroeh;
NOES (0): None

     
4.

Status Report from District Appointees on Sonoma-Marin Area Rail Transit (SMART) Board

The Committee was provided with a copies of the following agenda items and staff reports:

  • August 11, 2010, SMART Operations Committee Meeting Cancellation Notice;
  • August 18, 2010, SMART Board Meeting Cancellation Notice;
  • August 26, 2010, SMART Citizens Oversight Committee Meeting;
  • September 1, 2010, SMART Special Board Meeting;
  • September 1, 2010, SMART Real Estate Committee Meeting;
  • September 1, 2010, SMART Executive Committee Meeting; and,
  • September 15, 2010, SMART Board Meeting.

Copies of these items are available in the Office of the District Secretary, as well as on the District’s web site.

Action by the Board – None Required

     
5.

Status Report on Engineering Projects

In a memorandum to Committee, Acting District Engineer Ewa Bauer and General Manager Denis Mulligan 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.

At the meeting, Ms. Bauer reported that five proposals were received in response to Request for Proposals (RFP) No. 2011-B-2, Design Services for the Golden Gate Bridge Physical Suicide Deterrent System. She noted that four proposals were from domestic companies and one proposal was from a German company. She stated that a seven-member Evaluation Committee has been formed to evaluate the four highest-ranking proposals, and that the Evaluation Committee will include representatives from the Federal Highway Administration, the California State Department of Transportation and the Metropolitan Transportation Commission, in order to be certain that the interests of these agencies are represented early in the process.

Discussion ensued, including the following inquiry:

Director Reilly inquired as to whether the number of proposals received was expected. In response, Ms. Bauer stated that the project is an unusual one, so when five proposals were received, staff was pleased.

Action by the Board – None Required

     
6.

Public Comment

There was no public comment.

     
7.

Adjournment

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

     
     
     
     

Respectfully submitted,

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