BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – January 25, 2006
MINUTES
I. CALL TO ORDER
8:00 A.M. Chairman Aikins, presiding
Commissioners Present: Commissioner Ralph A. Garcia, Jr.; Commissioner Richard (Dick) Dodge; Secretary Lewis D. Miller; and, Chairman Larry R. Aikins
Commissioners Absent: Vice Chairman John (Jack) Castle
Staff Present: Executive Director, Michael J. Giari; Special Counsel to Port, Francois X. Sorba; Director of Finance & Administration, Cynthia D. Hampton; Manager of Economic Development, Steve Wright; Manager of Operations, Donald K. Snaman; Senior Maintenance Staff, Santiago Talamantes; Maintenance Staff, Jorge Ganoza; and, Executive Assistant, Rita F. Artist
Commissioner Miller led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of January 11, 2006 was made by Commissioner Miller and Seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Castle was absent.
III. CLAIMS
A Motion to Approve Claims was made by Commissioner Dodge and the Motion was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Castle was absent.
At this time in the meeting, Chairman Aikins changed the order of the Agenda to the following sequence: Item V.A., MOTION APPROVING AND AUTHORIZING SPONSORSHIP IN THE AMOUNT OF $________OF THE REDWOOD CITY EDUCATION FOUNDATION. Please refer to Item V.A below.
Item VI. REPORT BY STEVE LONGORIA, CEO, AANKO TECHNOLOGIES, INC. Please refer to Item VI-A below.
Item IV-A., RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF EMERGENCY RESPONSE AND BUSINESS CONTINUITY PLAN FOR THE PORT OF REDWOOD CITY. Please refer to Item IV-A below.
Item VI. REPORT/PRESENTATION BY CYNTHIA D. HAMPTON, DIRECTOR OF FINANCE & ADMINISTRATION. Please refer to Items VI-B and VI-C below.
Items VII, VIII, IX, and X followed in sequence.
IV. RESOLUTION
A. RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF EMERGENCY RESPONSE AND BUSINESS CONTINUITY PLAN FOR THE PORT OF REDWOOD CITY
Executive Director Giari explained that following the Commission’s adoption of this resolution, the Plan will be distributed to Redwood City and San Mateo County officials and agencies including the Office of Emergency Services, the County Sheriff’s Office, the City’s Police and Fire Departments, as well as the City Council. Elements of the Plan will then be included in their planning for emergency response.
A Motion to Adopt was made by Commissioner Dodge and the Motion was seconded by Commissioner Garcia. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Castle was absent.
V. MOTION
A. MOTION APPROVING AND AUTHORIZING SPONSORSHIP IN THE AMOUNT OF $_______ FOR THE SPONSORSHIP OF THE REDWOOD CITY EDUCATION FOUNDATION
Link to Redwood City Education Foundation Brochure
Executive Director Giari explained that the Redwood City Education Foundation (RCEF) has requested that the Port sponsor its annual Gala Dinner & Auction. RCEF is a non-profit community organization that provides enrichment programs to elementary school students in the Redwood City School District. In the past nine years RCEF has focused on its Music for Learning program, which currently provides music education to about 5,000 children. Due to decreased state funding and serious cutbacks in a range of programs in Redwood City schools, RCEF is expanding its program to fund academic, art, and wellness programs in addition to music education. Giari stated that the Port has sponsored RCEF events in the past and that funds are available in the FY2006 budget for sponsorship of this event.
Georgia Jack, President of the RCEF, commented that RCEF is vastly expanding their programs to serve the 7,700 children in the Redwood City school district from kindergarten through 8th grade. Ms. Jack briefly explained the new programs that have been added this year. She introduced Cherlene Wright, Gala Events Chair and RCEF Board Member to the Commission. Ms. Wright stated that in order to expand the programs available to the children, RCEF has had to expand its fundraising efforts. Ms. Wright thanked the Port Commission for its support in past years and asked for its increased support again this year.
Commissioner Dodge commented that the RCEF brochure states that “Every child who attends a public elementary or middle school in Redwood City directly benefits from RCEF-supported programs.” Dodge stated that the children who attend Sandpiper Elementary School in Redwood Shores do not benefit from this program. Dodge expressed his concern that because the organization is named the Redwood City Education Foundation, most people would assume that all Redwood City schools would be included. Ms. Jack responded that Redwood Shores’ schools are in the Belmont School District and that the Belmont Education Foundation raises money for Redwood Shores' schools. She agreed that the brochure should be clearer in the parameters that it serves and she will pass this information on to those who put together the brochures.
A Motion to Approve Sponsorship of the Redwood City Education Foundation in the amount of $2500 was made by Commissioner Garcia. The Motion was seconded by Commissioner Dodge and was passed by a unanimous roll call vote of all Commissioners present. Commissioner Castle was absent.
VI. REPORT/PRESENTATION
by Steve Longoria, CEO, Aanko Technologies, Inc.
A. Port of Redwood City Emergency Response and Business Continuity Plan – Executive Summary
Link to Summary
Steve Longoria summarized what is in the Port of Redwood City Emergency Response and Business Continuity Plan (the Plan), and where the Port is in terms of emergency management and how the Port integrates with other municipalities within the framework of the National Incident Management System. The Plan is integrated with the Port’s Facility Security Plan and will be integrated with Redwood City’s plan, which is now under development. Longoria stated that the Plan is a fluid document that will be updated and changed accordingly.
Commissioner Miller commented that he was very impressed with the Plan. Commissioner Dodge stated that he would like the Plan to include a provision for a portable laptop that could store essential Port data and be used for communication purposes via e-mail.
Chairman Aikins commented that after 9/11 ferries and private boats were recruited for the purpose of moving people through the region. Potential natural disasters that the Port has to prepare for, such as an earthquake, can affect the Bay area bridges. Aikins said there were many private boats in the Port area that might be called in to volunteer service if the need arose to shuttle people through the Port to other Bay area regions. Commissioner Miller agreed with Aikins saying that he thought it was important to incorporate the importance of water transportation in the Port’s Plan.
Commissioner Dodge commented on the need for equipment that would provide instant communication both internally and with the Fire Department, the City, and other agencies in a disaster that resulted in a power outage. Longoria responded that the Fire Chief is developing a structure for the emergency operations center group, which includes the Port Executive Director.
Executive Director Giari emphasized that the Port is working with the City and the County on all of these operational considerations of preparing plans and responding to an emergency. Port staff has met with the County Office of Emergency Services and discussed the use of the Port in an emergency where people, water, fuel, and other critical items could be moved in and out of this region by marine transportation. The Port to work with these agencies on ways to be prepared in the event of an emergency.
REPORT/PRESENTATION
by Cynthia D. Hampton, Director of Finance & Administration
B. Mid-Year Financial Results (December 31, 2005 Comparative Results)
C. Quarterly Investment Report (Quarter Ended December 31, 2005)
Link to Mid Year Financial Investment Report
Ms. Hampton reported that 979,000 metric tons have moved through the Port mid-way through the fiscal year. That tonnage has generated $2.6 million in Maritime Operating Revenue, or 79% of Total Operating Revenue of $3.3 million. Comparing Actual to Budget Fiscal Year to Date 12/31/05, Ms. Hampton stated that Total Operating Revenue exceeds budget by $54,000 or 2%.
Total Operating Expense is almost $1.5 million, which is under budget by $263,000 or 15%.
The increase in revenue combined with the decrease in expense resulted in Actual Operating Income that is $317,000 or 21% better than budget. The ratio of Operating Income to Operating Revenue is 56%, which is better than the 44% budgeted and translates to higher profitability fiscal year to date.
Ms. Hampton stated that Interest Income is $43,000 higher than budget and $89,000 higher than last year due to higher cash reserves and higher interest rates. Interest Expense is on budget, and Other Income & Expense is a net of $23,000 better than budget and last year. The Port has booked $424,470 in estimated subvention expense, out of a total budget of $624,380.
Moving on to the Quarterly Investment Report, Ms. Hampton explained that it reflects the balances in each of the Port’s cash and investment accounts, and is divided into two parts, Unrestricted and Restricted. Total Unrestricted cash and investments is $12.2 million, Restricted is $1.6 million. The largest amount on deposit, $7.6 million, is invested with the Local Agency Investment Fund. Total cash and investments is $13.8 million.
Ms. Hampton referred to a graph included with the report which illustrates a 10 year history of unrestricted, restricted and total cash and invested balances. She pointed out that the upward spike in 1999 reflects the cash that was deposited as a result of the bond sale that year. Over time, however, the amount declined as those funds were spent. We have some large projects that are coming up which will draw down on the $13.8 million balance, as will expenses related to the LBT remediation.
Commissioner Dodge asked why the 1999 Bond Fund still shows $1.6 million if it is depleted. Ms. Hampton said that represents the reserve fund, and the principal and interest funds used for debt service.
Chairman Aikins asked if the Port could expect to see higher interest rates in the future as current investments mature. Ms. Hampton responded that LAIF investments have many different maturities; the funds placed some time ago in longer term investments will be expected to earn greater returns when they mature and are reinvested in the current markets. Ms. Hampton said 90 or so days is the longest term used for certificates of deposit.
Commissioner Dodge complimented Ms. Hampton on presenting a very good report.
VII. PUBLIC COMMENT
None
VIII. MATTERS OF BOARD INTEREST
Commissioner Miller reported that he attended a community workshop on City Council Priorities on February 6, 2006. In conjunction with the City's two-year budget cycle, the City Council reviews and revises its set of priorities. The community was invited and encouraged to participate in this special priority-setting Council meeting. Many people were enthusiastic about using recycled water to lower the City’s use of Hetch Hetchy water. Commissioner Miller mentioned that the Port, its customers and surrounding industries would be interested in using recycled water under the condition that the properties of the recycled water remained consistent otherwise it could make it very difficult to use in concrete batch plants. It was suggested that the Port meet with the City to see if information from recycled water tests is available to industrial users.
Chairman Aikins reminded everyone that tomorrow night is the Chamber’s Annual Dinner and Awards Banquet to be held at the Hotel Sofitel at which Mike Giari will be honored as the Outgoing Chairman of the Board and Barry Jolette will be recognized as the Incoming Chairman.
IX. EXECUTIVE DIRECTOR'S REPORT
None
X. ADJOURNMENT
At 8: 46 a.m. Chairman Aikins requested that the Commission adjourn to its next regularly scheduled Meeting of February 8, 2006
A Motion to Adjourn was made by Commissioner Dodge and was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Castle was absent.
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