20-2011

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

DECEMBER 16, 2011

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, December 16, 2011, at 10:15 a.m., President Reilly presiding.

ADMINISTER OATH OF OFFICE TO KATHRIN SEARS

Just prior to the commencement of the December 16, 2011, meeting of the Board of Directors, Secretary of the District Janet S. Tarantino administered the Oath of Office to Kathrin Sears, appointed to the Board of Directors of the Golden Gate Bridge, Highway and Transportation District by the Board of Supervisors of the County of Marin on December 6, 2011.

Director Sears addressed the Board and expressed her appreciation at the honor of serving on the Golden Gate Bridge, Highway and Transportation District Board of Directors.

ROLL CALL

Directors Present (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly

Directors Absent (1): Director Theriault

Staff Present: General Manager Denis Mulligan; Auditor-Controller Joseph Wire; District Engineer Ewa Bauer; Secretary of the District Janet Tarantino; Attorney David Miller; Attorney Madeline Chun; 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 Kellee Hopper; Public Affairs Director Mary Currie; Executive Assistant to the General Manager Amorette Ko; Senior Board Analyst Elizabeth Eells

Visitors Present: Alex Tonisson, International Federation of Professional and Technical Engineers (IFPTE) Local No. 21; Lynford Edwards, IFPTE Local 21; Jason McMurtrie, International Brotherhood of Teamsters, Local No. 624; Frankie James Ford, Ironworkers Local Union No. 377; Ken Hopper, Ironworkers Local Union No. 377; Davie Wendt, IFPTE Local 21; Marina Secchitano, Inlandboatmen's Union of the Pacific; Mario Territo, International Union of Operating Engineers, Local 3; Jerry Grace, San Leandro resident

PLEDGE OF ALLEGIANCE

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

[Note: Items Nos. 1, 2, 3, 4 and 5, as well as Public Comment and the first of two Closed Sessions, were taken out of Agenda order.]

GENERAL MANAGER’S REPORT

CONSENT CALENDAR

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

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

Adopted

Lynford Edwards, IFPTE Local 21, spoke in favor of contract settlement between the District and Unions. He stated that the Union proposal meets the District’s financial goals, but that the District continues to insist on premium sharing. He requested that a contract be signed as soon as possible, preferably before December 31, 2011.

Jason McMurtrie, International Brotherhood of Teamsters, Local No. 624, spoke in opposition to premium sharing, stating that he makes $22.00 per hour, and his insurance covers himself and his family. He stated he does not wish to contribute such a large percentage of his wages for premium sharing, but he understands that the Board insists upon it. He added that the hardest hit employees will be those who have families and who earn the lowest incomes. He requested that a contract be signed as soon as possible.

Frankie James Ford, Ironworkers Local Union No. 377, spoke in opposition to premium sharing, indicating that paying 3.2% of his wages for premium sharing is too much, and that most employees cannot afford such a large amount. He stated that the Unions have agreed to over $2.5 million in concessions, and the District should reduce its demands.

Ken Hopper, Ironworkers Local Union No. 377, spoke in opposition to premium sharing, stating his understanding that the District wishes to be fair and equitable to all its employees. He indicated that the Unions have already met the District’s financial demands, but that a contract has not yet been signed. He added that he would be reluctant to vote in favor of a contract that rewards non-Union employees, while penalizing working families.

Davie Wendt, IFPTE Local 21, spoke in favor of contract settlement between the District and Unions stating her understanding that the proposed contract between the District and the Union Coalition now matches the Amalgamated Transit Union’s contract with the District. She indicated that the District’s premium sharing proposal would hurt working families the most. She requested that the final contract be fair to all those affected by it.

Mario Territo, International Union of Operating Engineers, Local 3, spoke in favor of contract settlement between the District and Unions. He also stated that any wage cut would be difficult for workers to manage due to the high cost of living in the Bay Area. All costs are rising and premium sharing will further increase the burden on workers. He requested that a contract be signed as soon as possible.

Marina Secchitano, Inlandboatmen's Union of the Pacific, spoke in favor of contract settlement between the District and Unions. She also requested that premium sharing not exceed 2% of an employee’s wages. She indicated that Union members believe that the Board wishes to protect workers and, at the same time, remain true to the District’s mission. She stated her hope that an agreement can be reached very soon.

Jerry Grace, San Leandro resident, stated that the public does not wish to hear that District workers are striking, and so his hope is for a contract settlement in the near future.

“The Board and the District, like many public agencies, are facing very difficult economic times. The Board is not seeking to make any structural changes in your medical benefits. The quality of the medical benefits is not being altered, but we are asking the employee to pay a portion of the cost of the benefit that they receive. Some portion of that contribution needs to be tied to the cost of the plan that the employee chooses. This contribution percentage is tied to your wage rate, with higher wage earners paying a higher percentage of the cost of their benefit and lower wage earners contributing a lower dollar amount for the same benefits. The Board is firm in its resolve on this matter.

“The Board has authorized a generous wage offer considering these times. The Board believes that its offer of wage increases should enable employees to better absorb this new approach for paying for medical benefits based on the cost of the plan that the employee selects.

“Additionally, the Board’s approach for providing medical benefits to Medicare eligible retirees and their dependents provides a more cost effective means of maintaining retiree medical benefits.

“The Board is also firm in its resolve that its long-standing policy of no retroactivity is appropriate and will remain in effect.

“The Board would like to encourage the Union Coalition to reconsider its rejection of the District’s offer.

“Again, I want to thank you for your efforts. I want to thank all the employees for the hard work that you do every day for this District. Thank you very much.”

Directors PAHRE/COCHRAN
Resolution No. 2011-103 approves actions relative to changes to the District’s Diversity Program for Contracts (DBE Program), as follows:

Authorizes submittal of the revised DBE Program to the United States Department of Transportation (USDOT) by February 28, 2012, to bring the DBE Program into conformity with recent revisions in USDOT DBE Program regulations.

Adopted

Authorizes the General Manager, or his designee, to update the District’s Human Resources Guide, Procurement Manual and other District operating guidelines, consistent with the Gift Policy, and to implement the Gift Policy accordingly, effective December 16, 2011.

Adopted

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

There were no “Addresses to the Board” to discuss.

Approve Selection of Officers of the Board of Directors for the Year 2012

Directors STROEH/COCHRAN
Resolution No. 2011-105 approves the selection of Officers of the Board of Directors for the Year 2012, the second year of the two-year term, as follows:

Janet Reilly, President
James Eddie, First Vice President
Dick Grosboll, Second Vice President

Adopted

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

Resolution No. 2011-106
Directors EDDIE/SOBEL authorizes a Resolution of Appreciation to Albert J. Boro in recognition of his dedicated service as Past President and Director of the Golden Gate Bridge, Highway and Transportation District Board of Directors.

Adopted

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

Jerry Grace, San Lorenzo resident, thanked Director Boro for the service he has given to the District’s Board of Directors, and wished him well.

• Director Stroeh commented that Director Boro has mentored him over the years. He stated that Director Boro has always been helpful to him, and the whole Board appreciates his ability to bring people together.

Resolution No. 2011-107
Directors STROEH/COCHRAN ratifies the action of the President of the Board to reconfirm the appointment of Albert J. Boro to represent the Golden Gate Bridge, Highway and Transportation District on the Amalgamated Transit Health and Welfare Trust and Retirement Board, for the remainder of his term, effective April 8, 2011 to February 1, 2013, in accordance with the Rules of the Board.

Adopted

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

A copy of Board Agenda Item No. 13, “Communications,” is available from the Office of the District Secretary and on the District’s web site.

Attorney David Miller, at the request of President Reilly, stated that the Board would convene in Closed Session, to discuss the matters listed under Closed Session, as outlined above in Item No. 9.

After Closed Session, President Reilly called the meeting to order in Open Session with a quorum present. Attorney Miller reported that the Board had met in Closed Session, as permitted by the Brown Act, to discuss the matters listed above in Item No. 9. Attorney Miller further reported that, regarding Agenda Item No. 6.B.1.b., instructions have been provided to the Negotiating Team regarding further negotiations, and a report will be provided in the future. He also reported that, regarding Agenda Items No. 6.B.2.a. and 6.B.2.b., instructions have been provided to the Third Party Administrator, John Glenn
Adjusters & Administrators, and that, once an agreement has been signed, the terms of the agreement will be available.

Attorney Miller also reported that, as a result of the Closed Session, the following recommendation was presented to the Board for its consideration.

Directors EDDIE/STROEH
Resolution No. 2011-108 approves a five-year extension to the Employment Agreements with Auditor-Controller Joseph M. Wire, effective January 2, 2012 through January 2, 2017 and with Secretary of the District Janet S. Tarantino, effective January 16, 2012 through January 16, 2017; with the understanding that no other changes have been made to the terms and/or conditions of either Employment Agreement.

Adopted

AYES (18): Directors Arnold, Boro, Campos, Chu, Cochran, Elsbernd, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; Second Vice President Grosboll; First Vice President Eddie; President Reilly
NOES (0): None
ABSENT (1): Director Theriault

ATTACHMENT

Golden Gate Bridge, Highway and Transportation District
Policy for the Receipt of Gifts

The District strives to provide impartial and exceptional service to its users and to the general public. Gifts can be perceived as attempts to influence District operations and can erode public confidence and the impartiality of decisions made by public officers, officials and employees. It is important to avoid even the appearance of impropriety in all aspects of the District’s programs and operations.

This Gift Policy is based on regulations adopted by California’s Fair Political Practices Commission (FPPC) as they apply to the District. Where the District’s Gift Policy imposes more stringent requirements, they must be followed. If there are omissions in the District’s Gift Policy that are covered by the FPPC regulations, the FPPC regulations shall control. Questions regarding the implementation of the District’s Gift Policy should be directed to the General Manager or the Attorney for the District.

Individuals in positions designated in the Conflict of Interest Code’s Disclosure Category 1 or who are covered by Government Code section 87200 are prohibited from receiving gifts totaling more than $420 from any single source in a calendar year.

All other District Officers and employees, whether or not their positions are included in the District's Conflict of Interest Code, are prohibited from receiving gifts totaling more than $420 in a calendar year from any single source that provides services, supplies, materials, machinery or equipment of the type utilized by the District.

These annual limits shall automatically increase or decrease consistent with modification to the gift limit established by the FPPC every two years.