April 27, 2012 REPORT OF THE MEETING OF THE RULES, POLICY AND INDUSTRIAL RELATIONS COMMITTEE/ COMMITTEE OF THE WHOLE Honorable Board of Directors Golden Gate Bridge, Highway and Transportation District Honorable Members: A Meeting of the Rules, Policy and Industrial Relations Committee/Committee of the Whole (Committee) was held in the Board Room, Administration Building, Toll Plaza, San Francisco, CA, on Friday, April 27, 2012, at 9:56 a.m., Chair Pahre presiding. Committee Members Present (7): Chair Pahre; Vice Chair Chu; Directors Arnold, Elsbernd, Snyder and Theriault; President Reilly (Ex Officio) Committee Members Absent (1): Director Mar Other Directors Present (10): Directors Campos, Cochran, Eddie, Fredericks, Moylan, Rabbitt, Renée, Sears, Sobel and Stroeh Committee of the Whole Members Present (17): Directors Arnold, Campos, Chu, Cochran, Elsbernd, Fredericks, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel, Stroeh and Theriault; First Vice President Eddie; President Reilly Committee of the Whole Members Absent (2): Directors Mar; 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; 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; Assistant Clerk of the Board Lona Franklin Visitors Present: None

1.	Approve Implementation of a Medical Benefits Premium Sharing Program for Non-Represented Employees, Deputy General Managers, District Officers and Members of the Board of Directors, and Other Related Actions In a memorandum to Committee, Deputy General Manager/Administration and Development Kellee Hopper and General Manager Denis Mulligan reported on staff’s recommendation to approve a modification of the District’s medical and prescription drugs programs by implementation of a premium sharing component applicable to non-represented employees, Deputy General Managers, District Officers, and members of the Board of Directors.

	a.	Background

		The Board of Directors (Board) of the Golden Gate Bridge, Highway and Transportation District (District), at its Special Meeting of October 30, 2009, approved the Financial Plan for Achieving Long-Term Financial Stability (Plan) to meet the District’s then projected deficit of $132 million. Among the Plan's elements is Initiative No. 24, “Negotiate Increased Cost Sharing for Health Benefit Plans for All Covered Individuals.” Public sector benefit reforms have been implemented at all levels of government in the state of California and throughout the nation.

	b.	Staff Report

		The staff report stated that the Board, by Resolution No. 2011-073 at its meeting of July 22, 2011, approved: 1) implementation of Individual Medicare Plan and Health Reimbursement Accounts for current and future non-bargaining unit retirees and their eligible dependents who have attained eligibility for Medicare, effective July 1, 2012; 2) modifications to policies regarding pension benefits and eligibility for retiree medical benefits for new hires; 3) its intention to implement modifications to the District’s medical benefit policies in the form of premium sharing and/or medical plan restructuring at a future date; and, 4) authorization of a two percent wage increase for all non-bargaining unit employees, with the exception of District Officers and Deputy General Managers, effective July 25, 2011. The staff report further stated that the proposed reforms are consistent with proposals that have been under negotiation with the Union Coalition whose Memoranda of Understanding expired on June 30, 2011. No modifications are being made in the covered benefits or quality of any of the District’s medical benefit programs (Kaiser HMO, Blue Shield HMO and Blue Shield PPO). The staff report indicated that principles of equity relative to contribution toward the cost of enrollment are evident by the creation of three tiers of contribution levels predicated upon the base wage rates applicable to each participant. A copy of the staff report is available from the Office of the District Secretary and on the District’s web site.

	c.	Remark by General Manager

		At the meeting, Mr. Mulligan reported that the action requested today is the culmination of the action taken on July 22, 2011, when the Board passed Resolution No. 2011-073 regarding District benefits.

	d.	Discussion by the Board

		Discussion ensued, including the following comment: Director Theriault commented that Board action on this item should be postponed until ongoing negotiations between the District and the Union Coalition have concluded.

	Staff recommended, and the Committee concurred by motion made and seconded by Directors ELSBERND/ARNOLD to forward the following recommendation to the Board of Directors for consideration: RECOMMENDATION The Rules, Policy and Industrial Relations Committee/Committee of the Whole recommends that the Board of Directors approves a modification of the District’s medical and prescription drugs programs by implementation of a premium sharing component applicable to non-represented employees, Deputy General Managers, District Officers and members of the Board, effective July 1, 2012, whereby participants will contribute toward the premiums charged and/or applicable COBRA rates for the medical plan in which they elect to enroll and based on the level of enrollment (i.e., single, employee + one, or family), on the following basis: Participants with wage rates at or below $32.00 per hour, 2.5% of enrollment cost; Participants with wage rates at or below $50.00 per hour, 5% of enrollment cost; and, Participants with wage rates above $50.00 per hour, 7.5% of enrollment cost, with the understanding that the members of the Board of Directors will be included in the classification of participants with wage rates above $50.00 per hour and that no changes will be made in the quality of the medical benefits; and, Authorizes a 2% wage increase for the four Deputy General Managers, effective April 27, 2012. Action by the Board at its Meeting of April 27, 2012 – Resolution NON-CONSENT CALENDAR AYES (16): Directors Arnold, Campos, Chu, Cochran, Elsbernd, Fredericks, Moylan, Pahre, Rabbitt, Renée, Sears, Snyder, Sobel and Stroeh; First Vice President Eddie; President Reilly NOES (1): Director Theriault

2.	Public Comment There was no public comment on items not on the Agenda.

3.	Adjournment All business having been concluded, the meeting was adjourned at 10:02 a.m.

Respectfully submitted,

s/ Barbara L. Pahre, Chair

Rules, Policy and Industrial Relations Committee