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

1. Presentation of Retirement Gift to Glen E. Woods, Customer Service Representative (Bilingual), District Division
  President Reilly presented a retirement gift to Glen E. Woods, Customer Service Representative (Bilingual), District Division, for twenty-five years and eight months of dedicated service, and expressed her best wishes for a long and happy retirement on behalf of the Board of Directors.
       
2. Presentation of Employee of the Month Award for December 2011, to Michelle Shalagin, Laborer, Bridge Division
  President Reilly presented the Employee of the Month Award for December 2011, to Michelle Shalagin, Laborer, Bridge Division, and expressed her congratulations on behalf of the Board of Directors.


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

     
3. Approve the Minutes of the Following Meetings
  a. Transportation Committee/Committee of the Whole of November 17, 2011;
  b. Building and Operating Committee/Committee of the Whole of November 17, 2011;
  c. Finance-Auditing Committee/Committee of the Whole of November 18, 2011; and,
  d.

Regular Meeting of the Board of Directors of November 18, 2011.

Carried

     
4. Denial of Claims
  a.

Insufficient Claim of Maureen Machanich

Carried

  b.

Amended Subrogation Claim of CSAA
(Insured: Yat Pan, Leslie Yun and Janet Lingh

Carried

  c.

Claim of Yellow Cab Cooperative, Inc.

Carried

  d.

Claim of Emy M. Peterson

Carried

  e.

Application for Leave to Present Late Claim and Claim of Josh Pastreich

Carried

  f.

Claim of Min Lee

Carried

  g.

Amended Subrogation Claim of State Farm Mutual
Automobile Insurance Company (Insured: Andy Fong)

Carried

  h.

Amended Claim of Kourosh Shahrouzi

Carried

  i.

Claim of Tong Le Xie

Carried

     
5.
Ratify Actions by the Auditor-Controller
   
  Resolution No. 2011-102 (Finance-Auditing Committee/Committee of the Whole, November 18, 2011) ratifies actions taken by the Auditor-Controller, as follows:
  a. The Board of Directors has no commitments and/or expenditures to ratify for the period October 1, 2011, through October 31, 2011;
  b. Ratifies investments made by the Auditor-Controller during the period October 18, 2011, through November 7, 2011, as follows:
Security Purchase Date Maturity Date Original Cost Percent Yield
Bank of Nova Scotia Certificate of Deposit 10/18/11 10/15/12 9,005,319.00 0.68
FHLMC (Callable) Notes 10/18/11 10/18/13 5,568,840.00 0.60
FNMA (Callable) Notes 10/26/11 10/26/16 5,000,000.00 1.75
JP Morgan Chase & CO Notes 10/31/11 11/15/14 6,452,314.40 2.66
  c. Authorizes the Auditor-Controller to re-invest, within the established policy of the Board, investments maturing between November 8, 2011, and December 5, 2011, as well as the investment of all other funds not required to cover expenditures that may become available; and,
  d. Accepts the Investment Report for October 2011, as prepared by PFM.

Adopted

     
PUBLIC COMMENT
     
  Alex Tonisson, International Federation of Professional and Technical Engineers (IFPTE) Local No. 21, spoke in opposition to premium sharing as proposed by the District, stating that an employee earning $22.00 per hour, with Blue Shield PPO coverage for himself and family, would pay 2.6% of his total wages for premium sharing under the District’s proposal. For an employee earning $32.00 per hour, premium sharing would cost 3.2% of total wages, while an employee earning $55.00 per hour would pay 2.9% of total wages. He stated that, while the District has indicated it wishes premium sharing to be progressive, these calculations reveal that the proposal is not progressive; instead, it is flawed.

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.

 
CLOSED SESSION
         
6. a. Remarks by Attorney David Miller
         
    Attorney Miller, at the request of President Reilly, reported that the Board would convene in Closed Session at this time, as permitted by the Brown Act, to discuss the matter listed on the Agenda as Item No. 6.B.1.a., as follows:
         
    "1. Conference with Labor Negotiator
Pursuant to Government Code Section 54957.6
      a. Union Coalition
         
    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 pending labor negotiations with the Union Coalition, as listed above. He stated that the Board has heard the report of the Labor Relations Advisory Committee, and the negotiating team and the General Manager have listened to the testimony. He reported that the President of the Board will make a statement on behalf of the Board.
         
  b. Verbatim Statement by the President of the Board on Behalf of the Board
         
    “First, to employees who testified today, we want to say thank you for your testimony today and for taking the time out of your day. I want to take this opportunity to also read a statement, a report of the position of the Board of Directors on the remaining issues in the negotiations. This Board of Directors greatly appreciates the work you do for this District every single day. I hope we show that appreciation in many ways.

“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.”

         
GENERAL MANAGER’S REPORT (Continued)
     
7.

General Manager Denis Mulligan reported that all remaining items in the written General Manager’s Report are informational.

   
ATTORNEY’S REPORT
   
8. Attorney David Miller reported that all items contained in the Attorney’s Report are informational. Attorney Miller reported that the Closed Session, listed on the Agenda as Items No. 6.B.1.b, 6.B.2.a., 6.B.2.b. and 6.B.3., will be held just prior to the conclusion of this meeting, to discuss the following items:
   
  “1. Conference with Labor Negotiator
Pursuant to Government Code Section 54957.6
    b. Inlandboatmen’s Union of the Pacific Pension Plan
   
  “2. Conference with Legal Counsel – Existing Litigation
Pursuant to Government Code Section 54956.9(a)
Report of John Glenn Adjusters & Administrators, Inc.
    a. Dolores Skore vs. Golden Gate Bridge, Highway and Transportation District
    b. Aquilina Balingit vs. Golden Gate Bridge, Highway and Transportation District
   
  “3. Pursuant to Government Code Section 54957
Public Employee Performance Evaluation for the Auditor-Controller and the Secretary of the District.”
     
ENGINEER’S REPORT
     
9. District Engineer Ewa Bauer reported that all items contained in the written Engineer’s Report are informational.
     
OTHER REPORTS
     
10. There were no “Other Reports” to discuss.
     
REPORT OF THE RULES, POLICY AND INDUSTRIAL RELATIONS COMMITTEE/COMMITTEE OF THE WHOLE OF DECEMBER 15, 2011
     
11. Approve Changes to the Diversity Program for Contracts and Submittal of the Revised Program to U.S. Department of Transportation
     
 

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

  a. Approves the addition of a new Small Business Enterprise (SBE) element within the District’s Diversity Program for Contracts (DBE Program);
  b. Approves the updating of the DBE Program to reflect increased accountability and monitoring of DBE participation in federally assisted contracts; and,
  c.

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

  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
     
12. Adopt a Gift Policy and Authorize Related Actions
     
  Directors PAHRE/STROEH
Resolution No. 2011-104 approves actions relative to the Golden Gate Bridge, Highway and Transportation District (District) Policy for the Receipt of Gifts (Gift Policy), as follows:
  a. Approves adoption of the District’s Gift Policy, set forth in the Attachment hereto, governing the receipt of gifts by the District’s Directors, Officers and employees; and,
  b.

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


     

ADDRESSES TO THE BOARD

     
13.

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

     
SPECIAL ORDER OF BUSINESS
     
14.

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

       
15. Authorize 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
     
  a. Action by the Board
     
   

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

     
  b. Remarks by Albert J. Boro
     
    Director Boro commented that it has been a privilege to serve on the District. The Board members and staff of the District work well together, and everyone’s opinions are respected. He stated that, in the long term, he will continue to be interested in the activities of the District.
     
  c. Public Comment
     
    Marina Secchitano, Inlandboatmen’s Union of the Pacific, presented a Resolution of Appreciation to Director Boro, on behalf of the members of the Inlandboatmen’s Union of the Pacific, recognizing his service to the District and appreciation of the work he has done.

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.

     
  d. Remark by Board Member
     
    Discussion ensued, including the following comment:
   
  • 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.
     
16. Ratify 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

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

     
UNFINISHED BUSINESS
       
17. There was no “Unfinished Business” to discuss.
       
NEW BUSINESS
 
18. There was no “New Business” to discuss.
     
COMMUNICATIONS
     
19.

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.

     
CLOSED SESSION
     
20. a. Remarks by the Attorney
     
   

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.

     
  b. Action by the Board
Approve a Five-Year Extension to the Employment Agreements for the Auditor-Controller and the Secretary of the District

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

     
ADJOURNMENT
     
21. All business having been concluded, the meeting was adjourned at 11:58 a.m., in memory of Christopher S. Melchoir, Rose Heilman, Richard Lawrence Bechelli and F. Weston “Wes” Starratt.
     

Respectfully submitted,

s/ Janet S. Tarantino
Secretary of the District

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

 

 


 

ATTACHMENT

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

   
1. Purpose
       
This Policy for the receipt of Gifts (“Gift Policy”) sets forth the District’s rules regarding the receipt of gifts of any kind from individuals, businesses and organizations. This Gift Policy applies to District Directors, Officers and employees.

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.

       
2. Definitions
  a. “Financial interest” is defined and excepted as set forth in the Political Reform Act (codified in section 81000, et seq. of the California Government Code) and the FPPC Regulations, as they may be amended from time to time.
       
  b. “FPPC Regulations” means the regulations adopted by the Fair Political Practices Commission in its role as the implementing and enforcement agency of the State's Political Reform Act. These implementations are set forth in Title 2, Division 6, Sections 18109-18997 of the California Code of Regulations.
       
  c. “Gifts” are defined and excepted as set forth in the Political Reform Act and FPPC Regulations, as they may be amended from time to time.
       
  d. “Pending procurement” refers to a procurement that is underway during the following time periods:
    i. Beginning 60 days prior to the District's issuance of any request for information, quotes, bids or proposals; through the solicitation and evaluation of quotes, bids or proposals; up until award of a contract or abandonment of the procurement process by the District; and
    ii. Within the 60 days prior to the expiration of the term of an existing contract and during negotiations of a contract renewal or exercise of any contract option.
       
3. Gift Limit for Directors, Officers and Employees
       
District Directors, Officers and designated employees of the Golden Gate Bridge, Highway and Transportation District identified in the District’s Conflict of Interest Code or covered by Government Code section 87200 (including county supervisors, members of city councils, and other public officials who manage public investments) are subject to State laws regarding the receipt of gifts as set forth in the Political Reform Act (at Government Code Section 89503) and the FPPC Regulations. These minimum requirements are not altered by this Gift Policy.

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.

       
4. Prohibition on Gifts during Pending Procurements
       
No Director, Officer, or employee of the District, whether or not such employee’s position is included in the District's Conflict of Interest Code, shall accept a gift of any value from a person the Director, Officer, or employee knows, or has reason to know, has a financial interest in a pending procurement with the District.