Any HSS or titanium-coated bit will work. Use medium speed. If you start with a smaller pilot hole (e.g. 1/8") it will keep the larger bit from walking and give it more bite.

The linked post has my suggestion for covering it. http://cruising.sailboatowners.com/csbb/index.cgi/page/1/md/read/id/162689/sbj/drill-the-pedestal-with-nice-big-3-8-holes/