10-2012

GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT

MEMORANDUM OF MINUTES

BOARD OF DIRECTORS MEETING

JUNE 22, 2012

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, June 22, 2012, at 10:04 a.m., President Reilly presiding.

ROLL CALL

Directors Present (16): Directors Arnold, Campos, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly

Directors Absent (3): Directors Chu and Snyder; Second Vice President Grosboll

Staff Present: General Manager Denis Mulligan; Auditor-Controller Joseph Wire; District Engineer Ewa Bauer; Secretary of the District Janet Tarantino; Attorney David Miller; Attorney Jerrold Schaefer; Attorney Molly Kaban; Deputy General Manager/Bridge Division Kary Witt; Deputy General Manager/Bus Transit Division Teri Mantony; Deputy General Manager/Administration and Development Kellee Hopper; Public Affairs Director Mary Currie; Assistant Clerk of the Board Lona Franklin

Visitors Present: Tilo Faoa, San Francisco resident; Tuatagaloa Malepeai, San Francisco resident; Joshua Faoa, San Francisco resident; Mamaioa Maya Suisala, San Francisco resident; Suzanna Story, Placer County resident; Francisco Da Costa, San Francisco resident; Deputy Chief Kevin Cashman and Deputy Chief James Dudley, for the Hon. Edwin M. Lee, Mayor, City and County of San Francisco; Nancy Hellman Bechtle, Chair, Board of Trustees, Golden Gate National Parks Conservancy/Co-chair of the Golden Gate Bridge 75th Anniversary Steering Committee; Tom McDonald, Senior Vice President, Marketing, SF Giants for Larry M. Baer, President and CEO, SF Giants/Co-chair Golden Gate Bridge 75th Anniversary Steering Committee; Greg Moore, President and CEO, Golden Gate National Parks Conservancy; Mark Buell, Chair, Board of Trustees, Golden Gate National Parks Conservancy; Frank Dean, General Superintendent, Golden Gate National Recreation Area/National Park Service; Craig Middleton, Executive Director, The Presidio Trust; Alexandra Lee, Project Manager, Golden Gate Bridge 75th Anniversary

PLEDGE OF ALLEGIANCE

Director Gerald Cochran led the Board of Directors in the Pledge of Allegiance to the Flag.

PUBLIC COMMENT

	Suzanna Story, Placer County resident, thanked the Board for allowing for public comment, and congratulated the District on its 75th anniversary of the opening of the Golden Gate Bridge (Bridge). She spoke in support of a suicide deterrent system for the Bridge, relating the story of her son who jumped to his death from the Bridge in 2010 at the age of 28. She related the pain and suffering his family and friends have experienced, and concluded by stating that a suicide deterrent system could have prevented the loss of his life. Francisco Da Costa, San Francisco resident, spoke in support of better protocols for emergencies on the Bridge, stating that he had worked for the Presidio and the Park Police for many years. He related the story of a local Polynesian family who lost a loved one who had jumped from the Bridge. He indicated that the family had had difficulty because the “Missing Persons Desk” was unavailable during the weekend. He indicated that the incident report was taken by the California Highway Patrol (CHP), who have not been forthcoming, and requested that a videotape or other evidence from the Bridge be given to the family. Tuatagaloa Malepeai, Associate Pastor, San Francisco, spoke in support of the family’s request for a videotape or other evidence from the Bridge, stating his appreciation for everything the San Francisco Police Department and the Marin County Sheriff’s Department has done. He indicated that many unanswered questions remain and that it has been weeks since the event occurred. He requested the District’s assistance in providing the family with facts regarding this incident. Joshua Faoa, San Francisco resident, spoke in support of the family’s request for a videotape or other evidence from the Bridge. He stated that his brother has been missing since June 2, 2012, and was last seen in his uniform leaving home for work. Mamaioa Maya Suisala, San Francisco resident, spoke of her son, who has been missing since she last talked with him on the morning of June 2, 2012. She stated that she had attempted to reach him later that morning by phone, but he had not answered. She stated that she wishes to view the videotape of June 2, 2012 at the Bridge, but that her family has been unable to do so. Remark by General Manager Mr. Mulligan stated that the District wishes to assist this family in achieving closure, and directed Deputy General Manager/Bridge Division Kary Witt to check with the California Highway Patrol on the status of the investigation and to establish communication with the family. Discussion ensued, including the following inquiry: Director Theriault inquired as to whether a new protocol could be developed that would allow further investigation under circumstances such as those related during the Public Comment period today. In response, Attorney Miller stated that the District will discuss the topic with area law enforcement. It is uncertain at this time whether a new protocol can be developed.

CONSENT CALENDAR

1.	Directors STROEH/MOYLAN moved and seconded to approve the Consent Calendar. All items were approved by the following vote of the Board of Directors: AYES (15): Directors Arnold, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly NOES (0): None ABSENT (4): Directors Campos, Chu and Snyder; Second Vice President Grosboll

2.	Denial of Claims
	a.	Claim of Donald W. Kinn Carried
	b.	Insufficient Claim of Lois Anderson Carried
	c.	Claim of Herb Isenberg Carried
	d.	Amended Claim of Richard Alan Smail Carried
	e.	Claim of Larry D. Stephens Carried
	f.	Claim of Ngoc Nguyen Carried
	g.	Subrogation Claim of California State Automobile Association (Insured: Efrain Chavarria) Carried
	h.	Claim of Steve Johnson Carried
	i.	Claim of Laurie Deaton Carried
	j.	Subrogation Claim of GEICO (Insured: John Simmons) Carried
	k.	Subrogation Claim of Farmers Insurance Exchange (Insured: Rosalba Aguilar Villavazo) Carried

GENERAL MANAGER’S REPORT

Report of the General Manager

General Manager Denis Mulligan reported that a visit to the Golden Gate Bridge by a couple from Kansas was reported in area newspapers. It was reported that the visitor had constructed a model of the Golden Gate Bridge across a creek on his farm.

Mr. Mulligan also reported that all items contained in the written General Manager’s Report are informational. A copy of the General Manager’s Report is available from the Office of the District Secretary and on the District’s web site.

ATTORNEY’S REPORT

4.	Attorney David Miller reported that all items contained in the written Attorney’s Report are informational. A copy of the Attorney’s Report is available from the Office of the District Secretary and on the District’s web site. Attorney Miller also reported that a Closed Session will be held just prior to the conclusion of this meeting to discuss the following items, listed on the Agenda as Items Nos. 6.B.1.a. and 6.B.2.a., as follows:

	"Closed Session
	"1.	Conference with Labor Negotiator "Pursuant to Government Code Section 54957.6
		"a.	Union Coalition"

	"2.	Conference with Conference with Legal Counsel – Pending Litigation “Government Code Section 54956.9(a) “Report of Hanson Bridgett LLP
		"a.	Lawsuit of Derek E. Turner and Mari Toban Blome vs. Kris Lafond; Margaret Planka; Daniel Schneider; California Highway Patrol Commissioner J.A. Farrow; The Golden Gate Bridge, Highway and Transportation District and Does 1 through 20.”

ENGINEER’S REPORT

5.	District Engineer Ewa Bauer reported that all items contained in the written Engineer’s Report are informational. A copy of the Engineer’s Report is available from the Office of the District Secretary and on the District’s web site.

OTHER REPORTS

6.	There were no “Other Reports” to discuss.

REPORT OF THE FINANCE-AUDITING COMMITTEE/COMMITTEE OF THE WHOLE, JUNE 22, 2012

7.	Authorize Budget Transfers Relative to the FY 11/12 Operating Budget Directors STROEH/PAHRE Resolution No. 2012-043 authorizes Operating Budget transfers in the amount of $4,195,000.00, or 2.4% of total FY 11/12 Operating Budget Expenses, as follows:
	a.	Salaries: Transfer $630,000.00 from Ferry Worker’s Compensation to Ferry Salaries;
	b.	Professional Services: Transfer $213,000.00 from Bridge Facility Maintenance to District Division Professional Services;
	c.	Fuel & Taxes: Transfer $1,250,000.00 from Bridge Debt Service and $160,000.00 from Bridge Workers’ Compensation to Bus ($605,000.00) and Ferry ($805,000.00) Fuel and Taxes;
	d.	District Indirect Cost Allocation Plan: Transfer $1,362,000.00 from Bridge, Bus and Ferry Medical Expense to District Division Indirect Cost Allocation Plan (ICAP);
	e.	Repair & Maintenance: Transfer $90,000.00 from Bus Repair Maintenance and $210,000.00 from Bridge Professional fees to Ferry Facility Maintenance & Repair; and,
	f.	Depreciation: Transfer $280,000.00 from Bridge Worker’s Compensation to Bus and Ferry Depreciation. Adopted
	AYES (15): Directors Arnold, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly NOES (0): None ABSENT (4): Directors Campos, Chu and Snyder; Second Vice President Grosboll

8.	Approve Actions Relative to the Annual Review of Rule XI, Investment Policy of the Rules of the Board Directors STROEH/EDDIE Resolution No. 2012-044 approves the following actions relative to the Investment Policy as contained in the Rules of the Board (Rules):
	1.	Approves amendments to RULE XI., INVESTMENT POLICY, of the Rules, under Section A. Introduction; Section I. Permitted Investment Instruments; and, Section Q. Investment Sub-Committee of the Rules, as set forth below:
		a.	Section A. Introduction (Replace the second paragraph in its entirety with the following.) “The investment policies and practices of the Golden Gate Bridge, Highway & Transportation District are based on state law and prudent money management. All general funds will be invested in accordance with the District's Investment Policy and shall be consistent with the provisions of Articles 1 and 2 of Chapter 4 of the California Government Code (commencing with Section 53600). The investment of bond or note proceeds will be governed by the provisions of the relevant bond documents. (Res. 01-148, 9/14/01).” Section I. Permitted Investment Instruments (Replace Sub-Paragraph 3, Negotiable Certificates of Deposit” in its entirety with the following.) “The District may invest in negotiable certificates of deposit or deposit notes issued by a nationally or state chartered bank or a state or federal savings and loan association or by a federally-licensed or state-licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated in one of the two highest categories by a NRSRO.” Section Q. Investment Sub-Committee (Replace Section Q in its entirety with the following.) “An Investment Sub-Committee shall be established that will include the Chair of the Finance-Auditing Committee, plus two other Directors and the Auditor-Controller, to periodically review the District's investment strategy and investment policy as needed. (Res. 81-197, 5/29/81.).”
	2.	Renew the annual delegation of investment management authority to the Auditor-Controller for Fiscal Year 12/13; and,
	3.	Amend the Rules accordingly. Adopted AYES (15): Directors Arnold, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly NOES (0): None ABSENT (4): Directors Campos, Chu and Snyder; Second Vice President Grosboll

9.	Approve Renewal of the Liability Insurance Program Directors STROEH/COCHRAN Resolution No. 2012-045 approves renewal of the Liability Insurance Program, including the policies stated below:
	a.	Approves renewal of the Excess General and Automobile Liability Insurance Program, including Public Officials and Employment Practices Liability with TRIA, with Starr Indemnity, AWAC, Lexington, Swiss Re and Axis, for a one-year term, with a liability limit of $110 million each occurrence/annual aggregate in excess of a self-insured retention of $2 million each occurrence, including legal defense costs within the self-insured retention, for a total annual premium of $1,052,962.00, effective July 1, 2012;
	b.	Approves renewal of the Excess Workers’ Compensation and Employers’ Liability Insurance Program with Safety National, for a one-year term, in excess of a self-insured retention of $1 million each accident, with $25 million limits, for an estimated annual premium of $316,031.00, effective July 1, 2012;
	c.	Approves renewal of the Public Officials’ Liability Insurance Program with Chartis, for a one-year term, with a liability of $2 million each occurrence/annual aggregate and a self-insured retention of $100,000.00 each claim, including full Employment Practices Liability Coverage, for an annual premium of $46,294.00;
	d.	Approves renewal of the Fiduciary Liability Insurance Program, for the Other Public Employee Benefits (OPEB) Trust Board, with Chubb Insurance Company, for a one-year term, with a liability of $2 million each occurrence and no deductible, for an annual premium of $4,080.00, effective July 1, 2012;
	e.	Approves renewal of the Public Employees’ Faithful Performance Bond and Comprehensive Dishonesty, Destruction and Disappearance Bond, with Fidelity and Deposit Company of Maryland, for a one-year term, with a liability limit of $1 million for employee dishonesty and computer fraud, subject to a $25,000.00 deductible and $5,000.00 deductible respectively, and a liability limit of $500,000.00 for loss of money and securities at the Golden Gate Bridge Toll Plaza, subject to a $5,000.00 deductible and $15,000.00 limit at all other locations with a deductible of $5,000.00, for an annual premium of $10,048.00, effective July 1, 2012; and,
	f.	Approves renewal of the Environmental Pollution Liability Program including TRIA, for a three-year term, with a $5,000,000.00 limit subject to a $250,000.00 deductible, for a three-year premium of $88,456.00, effective July 1, 2012 through June 30, 2015;
	with the understanding that requisite funds are available in the FY 12/13 Bridge, Bus Transit, Ferry Transit and District Divisions’ Operating Budgets. Adopted AYES (15): Directors Arnold, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly NOES (0): None ABSENT (4): Directors Campos, Chu and Snyder; Second Vice President Grosboll

10.	Approve Renewal of the Property Insurance Program Directors STROEH/MOYLAN Resolution No. 2012-046 approves the renewal of the District’s Property Insurance Program, including the policies stated below:
	a.	Approves renewal of the District’s Building & Facilities Insurance Policy, with $125 million of All Risk coverage, which includes earthquake and flood coverage for $20 million subject to deductibles, with Lexington, Arch and Endurance Insurance Cos., for a renewal premium of $645,218.00, for a one-year term, effective July 1, 2012; with the understanding that requisite funds are available in the FY 12/13 Bridge, Bus Transit, Ferry Transit and District Divisions’ Operating Budgets; and,
	b.	Approves continued allocation of monies to the Restricted Contingency Reserve, for FY 12/13, in the amount of $1,300,000.00, as self-insurance for costs associated with Bridge Physical Damage and Loss of Revenue; with the understanding that requisite funds are available in the FY 12/13 approved budget, and that the Restricted Contingency Reserve will be funded in conjunction with the Building & Facilities Insurance policy renewal date of July 1, 2012.
		Adopted
	AYES (15): Directors Arnold, Cochran, Elsbernd, Fredericks, Mar, Moylan, Pahre, Rabbitt, Renée, Sears, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly NOES (0): None ABSENT (4): Directors Campos, Chu and Snyder; Second Vice President Grosboll

ADDRESSES TO THE BOARD

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

SPECIAL ORDER OF BUSINESS

12.	Report by the Golden Gate National Parks Conservancy on the Golden Gate Bridge 75th Anniversary Weekend [Director Campos arrived at this time.]

	a.	PowerPoint Presentation

		Greg Moore, President and CEO, Golden Gate National Parks Conservancy, provided a PowerPoint Presentation (PowerPoint) that reviewed the preparation and staging of the 75th Anniversary Celebration (Celebration) of the Golden Gate Bridge (Bridge). The PowerPoint included seven categories of Visitor Experience Results, including 143 new and/or improved items. Several slides showed details of the additions and improvements, using before and after views highlighting the changes. The PowerPoint emphasized that the year-long program could not have been created without the close cooperation and dedicated service of community volunteers. Community tributes to the Bridge follow, with photographs from a number of events at various locations throughout San Francisco. Programs that grew out of the planning efforts for the Celebration were included in the PowerPoint. The results of successful marketing of the Anniversary were displayed, including the results of corporate sponsorships and individual, foundation, and business gifts. The balance of the PowerPoint showed photographs of the Celebration and gave a look to the future, which now includes an improved visitor experience that will benefit people from around the world. A copy of the PowerPoint is available from the Office of the District Secretary and on the District’s web site, www.goldengate.org.

	b.	Remarks by Greg Moore, President and CEO, Golden Gate National Parks Conservancy

		Mr. Moore thanked the members of the Golden Gate Bridge 75th Anniversary Steering Committee; the Golden Gate National Parks Conservancy (Conservancy); the National Park Service/ Golden Gate National Recreation Area; The Presidio Trust; the District and its employees; the Board; the Mayor and law enforcement personnel of the City and County of San Francisco; and, the many volunteers without whose tireless efforts this event could not have taken place. He stated that the year-long program is still underway and will run through the end of December 2012. All have had an important role. He indicated that the marketing effort was very successful and widespread, with the New York Times having recently covered the exhibit at Fort Point. He concluded by stating that none of the outcomes would have been possible without the faith the District and the community placed in the Conservancy and its partners to celebrate this landmark event.

13.	Presentation of Resolutions of Appreciation Relative to the Golden Gate Bridge 75th Anniversary Celebration

	The Board of Directors, by Resolution No. 2012-041, at its meeting of June 8, 2012, authorized the presentation of Resolutions of Appreciation to its Golden Gate Bridge 75th Anniversary Partners, in recognition of their support and leadership, showcased in the creativity, talent and civic spirit during the Golden Gate Bridge 75th Anniversary, a spectacular waterfront festival. At the meeting, President Reilly and General Manager Denis Mulligan presented the Resolutions of Appreciation to the following recipients: The Honorable Edwin M. Lee, Mayor, City and County of San Francisco, accepted by Deputy Chief Kevin Cashman and Deputy Chief James Dudley; Nancy Hellman Bechtle, Chair, Board of Trustees, Golden Gate National Parks Conservancy and Co-Chair, Golden Gate Bridge 75th Anniversary Steering Committee; Laurence M. Baer, President and CEO, San Francisco Giants and Co-Chair, Golden Gate Bridge 75th Anniversary Steering Committee; Greg Moore, President and CEO, Golden Gate National Parks Conservancy; Mark Buell, Chair, Board of Trustees, Golden Gate National Parks Conservancy; Frank Dean, General Superintendent, National Park Service/Golden Gate National Recreation Area; Craig Middleton, Executive Director, The Presidio Trust; and, Alexandra Lee, Project Manager, Golden Gate Bridge 75th Anniversary Steering Committee. In addition, President Reilly and First Vice President Eddie presented a Resolution of Appreciation to Denis Mulligan, General Manager, Golden Gate Bridge, Highway and Transportation District; and, First Vice President Eddie and Director Stroeh presented Janet Reilly, President, Board of Directors, Golden Gate Bridge, Highway and Transportation District with her Resolution of Appreciation and a bouquet of flowers. Finally, each of the recipients/representatives was given the opportunity to share his/her thoughts and to express their appreciation for the prestigious recognition.

CLOSED SESSION

14.	Attorney David Miller, at the request of President Reilly, stated that the Board would convene in Closed Session, as permitted by the Brown Act, to discuss the matters listed under Closed Session, as outlined above in Item No. 4. 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. 4. Attorney Miller further reported that the Board heard a report from the Labor Relations Advisory Committee regarding pending labor negotiations and that this matter will be carried over to the next Board meeting. A report was also heard on the matter of pending litigation, listed on the Agenda as Item No. 6.B.2.a. Instructions were given to counsel and a report will be given to the Board on this matter at a future meeting. No action was taken.

UNFINISHED BUSINESS

15.	There was no “Unfinished Business” to discuss.

NEW BUSINESS

16.	There was no “New Business” to discuss.

COMMUNICATIONS

17.	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.

ADJOURNMENT

18.	All business having been concluded, the meeting was adjourned at 12:23 p.m.., in memory of James W. Greely, Albert Charles Brune, Jr., Gayle Wilson and Trevor Smith.

Respectfully submitted,

s/ Janet S. Tarantino
Secretary of the District

Attachment: Attachment A to Item No. 17, above.

ATTACHMENT A

ADVANCED COMMUNICATION AND INFORMATION SYSTEM (ACIS)
The ACIS project includes all hardware, software, and services necessary to accomplish the supply, installation, testing, documentation, training, and startup of ACIS, consisting of the following components:

Voice and data radio communications;
Basic ITS components including Computer Aided Dispatch/Automatic Vehicle Location (CAD/AVL), route and schedule adherence, transfer request protection, and text messaging;
Real-time passenger information via the Internet, cell phones, and other wireless mobile devices.
Dynamic message signs at selected transit centers, bus stops, and other locations. Real-time information to Metropolitan Transportation Commission’s (MTC) 511.org system;
On-board vehicle equipment including mobile data terminal, single point log-on interface, emergency alarm, text messaging, and interface with destination signs.