November 17, 2011

 

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 (Committee) was held in the Board Room, Administration Building, Toll Plaza, San Francisco, CA, on Thursday, November 17, 2011, at 10:05 a.m., Chair Eddie presiding.

Committee Members Present (8): Chair Eddie; Vice Chair Moylan; Directors Cochran, Rabbitt, Renée, Stroeh and Theriault; President Reilly (Ex Officio)
Other Directors Present (6): Directors Arnold, Boro, Chu, Pahre and Sobel; Second Vice President Grosboll;

Committee of the Whole Members Present (14): Directors Arnold, Boro, Chu, Cochran, Moylan, Pahre, Rabbitt, Renée, Sobel, Stroeh and Theriault; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
Committee of the Whole Members Absent (4): Directors Campos, Elsbernd, Mar and Snyder

[Note: On this date, there was one vacancy on the Board of Directors.]

Staff Present: General Manager Denis Mulligan; District Engineer Ewa Bauer; Acting Auditor-Controller Jennifer Mennucci; Secretary of the District Janet Tarantino; Attorney David Miller; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Administration and Development Kellee Hopper; Acting Deputy General Manager/Ferry Transit Division Christian Stark; Senior Board Analyst Elizabeth Eells

Visitors Present: None

 

     
1.

Approve Actions Relative to Contract No. 2011-BT-1, San Francisco Bus Facility Construction, with Interstate Grading & Paving, Inc.

In a memorandum to Committee, Deputy District Engineer John Eberle, District Engineer Ewa Bauer and General Manager Denis Mulligan reported on staff’s recommendation to approve actions relative to Contract No. 2011-BT-1, San Francisco Bus Facility Construction, with Interstate Grading & Paving, Inc. (Interstate).

The staff report stated that the Board of Directors (Board) of the Golden Gate Bridge, Highway and Transportation District (District), by Resolution No. 2011-022 at its meeting of March 25, 2011, authorized award of Contract No. 2011-BT-1, San Francisco Bus Facility Construction, to Interstate in the amount of $1,103,940.00, including a Contingency Fund in the amount of $110,394.00, to make improvements to the leased parcel at Third, Fourth, Perry and Stillman Streets in San Francisco, CA, for use as the District’s mid-day bus storage facility. The parcel has been subleased to a vendor for use, on an interim basis, as a paid public parking lot, with additional improvements to be constructed prior to its establishment as the District’s mid-day bus storage facility. The following improvements are included in Contract No. 2011-BT-1: grading and paving of the parcel; installation of drainage, sewer and water lines; installation of conduits for future electrical and data use; installation of fences and gates around the parcel; and, installation of pipe bollards for protection around the existing elevated freeway columns.

During the excavating, trenching and grading operations, numerous buried man-made objects, including but not limited to portions of the original asphalt pavement, which were not contemplated in the original Contract, were discovered, and must be removed from the ground, broken up, segregated and disposed of at appropriate disposal facilities at an additional cost to the Contract. The cost of this additional work is estimated at $48,000.00 which, together with the $102,394.00 cost of authorized Contract Change Orders to date, exceeds the amount of the Contingency Fund by $40,000.00. The proposed increased Contingency Fund of $150,394.00 exceeds 10% of the base Contract amount, requiring that the Board approve the expenditure of this amount for said increase.

At the meeting, Mr. Mulligan stated that the California Department of Transportation (Caltrans) has leased the lot to the District at a “below market rate,” and the District has subleased the lot to Imperial Parking (US), LLC, dba Impark. The District will make a profit on this Sublease, and staff believes it would be more strategic for the District to assume the cost to clean up the lot.

Discussion ensued, including the following comments and inquiries:

 
  • Director Moylan inquired about the terms of the Sublease. In response, Mr. Mulligan stated that the Sublessee will be paying the District more than the District pays to Caltrans. The District will split the profit with Caltrans.
  • Director Stroeh inquired about the date the items were left in the lot. In response, Ms. Bauer stated that many of the items were probably left in the lot when the freeway was built many years ago.
  • Director Rabbitt made the following comments and inquiries:
    • He commented that the Contractor may have submitted their bid with the assumption that there was nothing buried in the lot and noted this type of unexpected construction expense must occur somewhat frequently.
    • He inquired about the District’s policy for handling unexpected construction expenses. In response, Ms. Bauer stated that the contract Contingency Fund is for unexpected construction expenses, and the Contingency Fund has already been used to pay for the unexpected conduit work and other smaller change orders.

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/Committee of the Whole recommends that the Board of Directors approve actions relative to Contract No. 2011-BT-1, San Francisco Bus Facility Construction, as follows:

  a. Authorize a $40,000.00 increase in the Contingency Fund, from $110,394.00 to $150,394.00, to cover the cost of removing and processing buried objects found during excavating, trenching and grading operations, and not originally contemplated in the Contract;
  b. Authorize the General Manager to issue Change Orders up to the amount of the increased Contingency Fund, provided that, in conformance with the District’s Procurement Policy, no individual Change Order exceeds $50,000.00;
 

Procurement Policy, no individual Change Order exceeds $50,000.00;
with the understanding that requisite funds are available in the FY 11/12 Bus Transit Division Capital Budget.

Action by the Board at its meeting of November 18, 2011 – Resolution
NON-CONSENT CALENDAR

AYES (14): Directors Arnold, Boro, Chu, Cochran, Moylan, Pahre, Rabbitt, Renée, Sobel, Stroeh and Theriault; Second Vice President Grosboll; First Vice President Eddie; President Reilly (Ex Officio)
NOES (0): None

     
2.

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

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

  • November 2011 SMART Committee Meetings Cancellation Notice; and
  • November 16, 2011, SMART Regular Board of Directors Meeting Packet.

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

At the meeting, Director Boro, who is a member of the SMART Board of Directors (SMART Board), reported that the SMART Board approved two major items in November: a) construction contracts; and, b) the sale of $191 Million in bonds. He stated that the bonds would be offered at a favorable rate in December 2011. He also stated that the money raised would not be spent until it was certain that the proposed initiative to repeal the local tax for SMART was unsuccessful.

Director Arnold, also a member of the SMART Board, reported that the SMART Board has discussed election procedures for the proposed initiative to repeal the local tax for SMART, which might qualify for the ballot in June or November 2012. At SMART’s request, the Secretary of State clarified the election procedures, indicating that the Registrar of Sonoma, the largest county in SMART’s District, would write the ballot argument and rebuttal, and SMART would provide its comments. Registrars of both counties will count ballots.

Director Eddie reported SMART received construction bids, which were under the Engineer’s Estimate by 20 percent. He stated that it is an advantageous time for a public agency to issue an “Invitation to Bid” for construction, and the project would create jobs.

Director Pahre stated that SMART’s Chief Finance Officer David Heath had been let go without cause.

Action by the Board – None Required

     
3.

Status Report on Engineering Projects

In a memorandum to Committee, 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 provided a status report on the Contract No. 2006-B-1, Golden Gate Bridge Seismic Retrofit Phase IIIA, North Anchorage Housing and North Pylon stating that the east sidewalk reconstruction work is being completed. She also stated that this Project work is being completed ahead of schedule and the East sidewalk will reopen on Saturday, November 19, 2011. The Contractor is well ahead of schedule on this project.

Action by the Board – None Required

   
4.

Public Comment

There was no public comment.

     
5.

Adjournment

All business having been concluded, the meeting was adjourned at 10:30 a.m.

     

 

 

Respectfully submitted,

s/ James C. Eddie, Chair

Building and Operating Committee