BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – October 11, 2006
MINUTES
I. CALL TO ORDER
8:00 A.M. Chairman Castle, presiding
Commissioners Present: Commissioner Ralph A. Garcia, Jr.; Secretary Richard A. Dodge; Vice Chairman Lewis D. Miller; and, Chairman John J. Castle
Commissioners Absent: Commissioner Larry Aikins
Staff Present: Executive Director Michael J. Giari; Special Counsel to Port, Francois X. Sorba; Director of Finance & Administration, Cynthia D. Hampton; Manager of Operations, Donald K. Snaman; Manager of Economic Development, Steven Wright; Assistant Manager of Operations, Eric Napralla; Staff Accountant, Evelyn Lim; Executive Assistant, Rita Artist
Commissioner Dodge led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of September 27, 2006 was made by Commissioner Dodge and Seconded by Commissioner Miller. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Aikins was absent.
III. CLAIMS
A Motion to Approve Claims was made by Commissioner Garcia and it was seconded by Commissioner Miller. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Aikins was absent.
IV. RESOLUTION
A. RESOLUTION APPROVING THIRD AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (SHEA & ASSOCIATES)
A Motion to Adopt was made by Commissioner Garcia. It was seconded by Commissioner Miller. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Aikins was absent.
V. MOTION
A. MOTION APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT FOR PROFESSIONAL ENVIRONMENTAL CONSULTING SERVICES – (TEC, INC.)
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Executive Director Giari stated that this item (V-A) is related to item (V-B) and that he would explain both items at this time.
Giari explained that LV Western Mining Claim LLC (LV) of Phoenix, AZ is proposing to build and operate a construction aggregate terminal at the Port of Redwood City on the LBT site (former Gibson Environmental site). The terminal would consist of hoppers and a covered conveyor system at Wharf 5, which would convey aggregate material to open storage piles and a truck loading facility at the LBT site. Estimated throughput of the project at full development is 800,000-1,000,000 tons per year with about 50 percent of the material going to a redi-mix concrete plant that would be located on the site.
The Port is the lead agency for the proposed project. The review of the project under CEQA will require the preparation of an initial study, environmental check list and studies related to traffic and air impacts. Depending on the nature and level of the environmental impacts that are identified in these studies, a Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Statement would be prepared. The Port and LV have agreed that the Port will hire TEC, Inc. of Solana Beach, CA to perform the CEQA review. A copy of their proposed scope of work is included as Exhibit A to the proposed agreement with the Port for their professional services.
The Port and LV are also entering into a Reimbursement Agreement (See Item V-B), under which LV agrees to pay for all costs, fees, and expenses in connection with the CEQA review and studies for the proposed project. LV will deposit with the Port the estimated costs for preparation of the documents and other expenses. The money deposited with the Port shall be used to pay all costs and expenses and will be charged against LV’s account with the Port. The Port is entitled to an administrative fee equivalent to 10% of the amounts disbursed under the contract with TEC.
Commissioner Dodge asked why we did not use the same company who performed the initial study for Eagle Rock to perform the initial study for LV. Giari that in order to evaluate each project separately and determine if there are any cumulative impacts, having a separate company perform the initial study would be preferable. Giari also commented that AMEC had a turnover of personnel while they were working on the Eagle Rock study, which slowed down the process. LV Mining is anxious to move ahead quickly on this project and, therefore, staff believes TEC, Inc. could be more responsive.
Referring to estimated throughput of the project at about 800,000-1,000,000 tons per year, Commissioner Dodge asked if that would be incremental growth for the Port or would a portion of that be tonnage siphoned from current Port tenants. Giari replied that the market is expected to be great enough to support several aggregate importing facilities at the Port. It is a growing market with a decreasing local supply and the LV Mining proposal includes a redi-mix plant that will use up half of that material.
Eric Woodhouse, representing LV Western Mining Claims, commented that as the local quarries begin to run out of aggregates, there will be a need to bring aggregates into the Bay Area. The Port of Redwood City provides an opportunity for that to be accomplished. Woodhouse stated that while it would be hard to say there would be no overlap in supply, this presents excellent competition for companies wishing to import aggregate through the port. The population of California is growing at approximately 2% per annum and the need for aggregates is growing at a faster rate than that. With that in mind, Woodhouse said the Port could rest assured that they would reach their tonnage targets.
Commissioner Dodge asked if the Port had done an analysis of aggregate tonnage demand and the impact on Port throughput of competition by different aggregate supply companies. Giari responded that the proposed TEC study is limited to the environmental impacts of the proposed LV Mining project. The Port has some information on aggregate demand and potential tonnage that it will provide to the Commission. Conducting a more in depth analysis and evaluating the effect of competition will be investigated.
Commissioner Garcia commented, as Giari had said, that this item involves the environmental impacts of the project and not the economic impacts. Garcia’s opinion was that the Board should proceed with this matter before considering any economic analysis or business negotiations. Chairman Castle agreed but wanted it to be made clear to the potential tenant that there is a possibility that they may not get their project approved even after they have gone through the environmental process. Giari stated that issue had been discussed with LV Mining.
A Motion to Approve was made by Commissioner Miller. It was seconded by Commissioner Garcia. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Aikins was absent.
MOTION
B. MOTION APPROVING AND AUTHORIZING EXECUTION OF REIMBURSEMENT AGREEMENT – (LV WESTERN MINING CLAIMS LLC)
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A Motion to Approve was made by Commissioner Dodge. It was seconded by Commissioner Miller. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Aikins was absent.
VI. REPORT/PRESENTATION
:
By Donald Snaman, Manager of Operations
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A. Quarterly Vessel and Tonnage Report (July 1, 2006-September 30, 2006)
Total tonnage for all commodities crossing over the docks during the 1st quarter of FY07 was 391,558 metric tons. This was a decrease of 129,830 MT, or 25%, over the 1st quarter of FY06 (521,388 MT). Approximate percentage breakdowns of total tonnage by commodities: imported cement 29%; exported scrap metal 20%; imported gypsum 17%; imported sand 16%; dredged sand 12%; and the remaining 8% consisted of imported limestone.
Two major contributors to the decline in tonnage were imported cement, limestone, and bauxite (Other) combining for 170,453 MT. This was due to an unusually wet spring and cement manufacturing equipment breakdowns at the Hanson facility in Cupertino.
38 vessels (12 ships, 26 barges) made calls during the 1st quarter of FY07 compared to 44 vessels (17 ships, 27 barges) during the 1st quarter of FY06. 39 vessels (15 ships, 24 barges) were projected for budget purposes for the 1st quarter of FY07.
1st quarter tonnage also did not meet 1st quarter FY07 budget projections by 97,942 MT, or 20%. Snaman commented that we have seen that the activity has picked up again and is returning to what our projections were for the 2nd quarter.
Executive Director Giari commented that although it is too early in FY07 to reach any conclusions, staff will be closely watching the tonnage numbers in light of the decrease.
VII. PUBLIC COMMENT
None
VIII. MATTERS OF BOARD INTEREST
Chairman Castle commented that while sailing last week in San Francisco Bay, he observed an American flag ship en route to Oakland with a Coast Guard escort. Castle provided pictures of the vessels and said it was an interesting experience to see Homeland Security working for us.
Making reference to a recent American Association of Port Authorities’ newsletter, Chairman Castle said there was a very good article about Redwood City and the Port’s sustained growth over the years. This was good press coverage in an international industry newsletter for the City and the Port.
IX. EXECUTIVE DIRECTOR'S REPORT
Executive Director Giari reported that the Ferry Boat Demonstration Ride held at the Port on Saturday, October 7th, was sponsored by the Port, the Water Transit Authority, and the City of Redwood City. Officials from the City, the County, and regional transportation agencies were invited to experience a ferry ride between Redwood City and the San Francisco Ferry Building. The event received good press coverage and met with much enthusiasm. People continue to ask when regular ferry service will be available from Redwood City. Chairman Castle recently sent a letter to the San Mateo County Transportation Authority asking them to include the funding of ferry service for Redwood City in the Strategic Plan for the Measure A funds, which become available in 2008. That will be the first source of funding and we will try to build additional sources of funding for ferry service from there.
Giari next reported that the City of Redwood City will celebrate its New Downtown on Sunday, October 15, at the Courthouse Plaza. In conjunction with the San Mateo Historical Association, the Port will have an exhibit on the history of the Port, which will be set up on “History Lane” next to Courthouse Plaza. We hope to see many people and friends of the Port there between 10:00 a.m. and 5:00 p.m.
X. ADJOURNMENT
At 8:25 a.m. Chairman Castle requested that the Commission adjourn to its next regularly scheduled Meeting of October 25, 2006.
A Motion to Adjourn was made by Commissioner Miller and it was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Aikins was absent.
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