BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – December 13, 2006
I. CALL TO ORDER
8:00 A.M. Chairman Castle, presiding
Commissioners Present: Larry Aikins; Ralph A. Garcia, Jr.; Secretary Richard Dodge arrived at 8:14 a.m.; Vice Chairman Lewis D. Miller; Chairman, John J. Castle
Commissioners Absent: None
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; Executive Assistant, Rita Artist
Commissioner Garcia led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of November 8, 2006 was made by Commissioner Aikins and Seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of Commissioners Aikins, Garcia, and Castle. Commissioner Miller abstained; Commissioner Dodge was absent.
A Motion to Approve Minutes of Regular Meeting of November 22, 2006 was made by Commissioner Garcia and Seconded by Commissioner Miller. The motion passed by a unanimous voice vote of Commissioners Miller, Garcia, and Castle. Commissioner Aikins abstained; Commissioner Dodge 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 Dodge was absent
IV. RESOLUTION
A. RESOLUTION APPROVING REQUESTS FOR CHANGE ORDER FOR THE FORMER LBT DEMOLITION AND SITE REMEDIATION PROJECT AT THE PORT OF REDWOOD CITY AND AUTHORIZING PAYMENT THEREOF
Executive Director Giari explained that the Board awarded the contract for the Former LBT Demolition and Site Remediation project to Cleveland Wrecking Company (CWC) on August 9, 2006. CWC has informed the Port of three conditions not described in the contract documents and is requesting compensation for the additional work as Change Order Requests (COR). Copies of the COR’s are included with the documents for this agenda item.
COR #1 requires the installation of a new electrical power panel to supply electricity to the remaining office building. COR #2 requires the removal and disposal of asbestos containing materials identified during an assessment by RGA Environmental, Inc. and COR #3 requires the removal and disposal of lead based paint chips identified during the RGA assessment for the BAAQMD demolition permit.
Commissioner Aikins asked if the presence of lead paint and asbestos was considered during the preparation of the specifications for this contract. Don Snaman said they were not part of the assessment performed by Treadwell & Rollo (T&R) when characterizing the site for oily waste contamination. Giari explained that in order to perform demolition of the tanks, CWC was required to obtain a permit from the BAAQMD. An assessment for the presence of lead and asbestos was required as a condition of obtaining the permit. Commissioner Garcia asked if the presence of lead paint and asbestos would typically be found in tanks similar to the ones at the former LBT site. Snaman explained that because the contract documents did not include a line item for lead and asbestos, CWC did not include the removal of these conditions.
Commissioner Miller commented on a contractor’s meeting that he had attended and asked if the Port should expect to receive a change order for the removal of a concrete pit. Snaman replied, “No”, and explained that the task was merely to remove an obstruction.
Chairman Castle asked if COR #2 and #3 were the result of an oversight by T&R. Giari commented that although T&R did not include these items in the plans and specifications for this project, the tasks still would be required in order for the demolition to proceed. Commissioner Garcia stated that it should be determined what the actual cost difference is between what the cost would have been through public bidding and what CWC is asking in the change order. Giari stated that Port staff has reviewed the change orders submitted by CWC for these items and considers the costs to be reasonable.
Commissioner Dodge stated that the Port signed a contract with CWC to dismantle and remove the tanks and that CWC had ample time to look at the tanks to determine the presence of lead paint and/or asbestos. CWC should have included the cost for removal of these items in their bid price. Giari explained that the cost for the removal of the lead based paint and the asbestos was not included in the scope of work. If CWC had included these costs in their bid, they would have risked being non-competitive.
Special Counsel to Port, Francois X. Sorba, explained that public bidding specifies line items. It is very difficult for a contractor to second guess whether or not the Port has hired another contractor to perform a task that is not listed in the contract documents.
Chairman Castle asked Attorney Sorba to explain possible alternatives to the Port in recovering the costs for these change orders. Sorba replied that the change orders could be rejected and the parties could negotiate to lower the cost of the change orders, or, they could go through the dispute resolution process, which is part of the contract documents. As far as T&R is concerned, Sorba advised postponing any action pending discussion with the Port Commissioners in closed session.
Executive Director Giari asked the Board to consider Change Order 1 at this time.
In response to Chairman Castle’s query as to how that could be done, Attorney Sorba explained that a Motion could be introduced to approve any one of the Change Orders as a separate action. Chairman Castle tabled Change Orders 2 and 3.
A Motion to Approve Change Order 1 was made by Commissioner Miller. It was seconded by Commissioner Garcia. The motion passed by a unanimous roll call vote of all Commissioners.
V. MOTION
A. MOTION APPROVING AND AUTHORIZING EXECUTION OF THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL PUBLIC RELATIONS SERVICES – (SANDUL COMPANY, INC.)
Commissioner Aikins commented that Duane Sandul brings a strong perspective to the Port of the relationship between the community and the Port. We are extremely fortunate to continue this long standing, working relationship with Sandul.
A Motion to Approve was made by Commissioner Dodge. It was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners.
VI. PUBLIC COMMENT
Robert Hoffman, representative of the Redwood City Library’s Archive Committee, thanked the Port Commission for its recent donation to the history book of Redwood City. Hoffman commented that they are on budget and the Archive’s Committee has every prospect of completing the project early in 2007. Hoffman also thanked the Port for recommending Duane Sandul to the Archives Committee. He commented that Sandul’s knowledge of the history of Redwood City and his writing expertise has contributed greatly to the completion of the book.
VII. MATTERS OF BOARD INTEREST
Commissioner Aikins complimented Port staff on their preparations for the Board of Port Commissioners’ Annual Holiday Reception, which was a very successful event that received many compliments from attending guests.
Chairman Castle commented that he had recently attended the 2006 AAPA Growth Opportunities for General Cargo and Shallow-Draft Ports Seminar in Memphis, TN. There is a great deal of interest in short sea shipping on both coasts and inland waterways of the U.S. but there is a substantial lack of funds to support it. Short Sea Shipping advocates are working hard to convince shippers and carriers that there is a need for trans-shipping via barges and inland waterways on a port-to-port basis but it will take some time to develop.
VIII. EXECUTIVE DIRECTOR'S REPORT
Executive Director Giari thanked the Commissioners for their appreciation and comments about the Holiday Reception and thanked Port staff for their efforts. He reported that toy donations for the Redwood City Police Activities League, Police Officers & Firefighters’ Association Toy & Book Drive 2006 were contributed by all who attended. On behalf of the Port Commissioners and staff members, Giari extended sincere appreciation to the Palo Alto Rowing Club for the bountiful collection they donated, which included two truck loads of toys, wrapping paper, and other items. Giari also recognized and thanked one of the Port’s customers, International Materials, Inc., for their generous monetary donation to the P.A.L. toy drive.
Director Giari introduced and welcomed Linda Hawkins, who is working for the Port on a temporary basis as Staff Accountant. Linda previously worked in the Property Management Division of Grubb & Ellis Real Estate Company.
Chairman Castle requested a letter of appreciation be sent to the Palo Alto Rowing Club and to International Materials, Inc. for their donations to the P.A.L. toy drive.
IX. ADJOURNMENT
At 8:49 a.m. Chairman Castle requested that the Commission adjourn to its next regularly scheduled Meeting of December 27, 2006 and the Meeting adjourned by unanimous voice vote of those present.
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