BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – April 12, 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 (Lew) Miller; Vice Chairman John (Jack) Castle; and, Chairman Larry Aikins
Commissioners Absent: None
Staff Present: Executive Director, Michael J. Giari; Special Counsel to the Port, Francois X. Sorba; Director of Finance & Administration, Cynthia D. Hampton; Manager of Economic Development, Steven Wright; Manager of Operations, Donald Snaman; Staff Accountant, Evelyn Lim; and, Executive Assistant, Rita Artist.
Commissioner Garcia led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Special Meeting of March 15, 2006 was made by Commissioner Miller and was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of the Commissioners with one abstention by Chairman Aikins.
III. CLAIMS
A Motion to Approve Claims was made by Commissioner Castle. The motion was seconded by Commissioner Dodge and it was passed by a unanimous voice vote of all Commissioners.
At this point in the meeting, Chairman Aikins moved to Item V-A, RESOLUTION APPROVING FOURTH AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (WDM, INC.) Items VI through Item XI followed in sequence.
IV. ORDINANCE
ORDINANCE ESTABLISHING SALARY PLAN FOR THE OFFICERS AND EMPLOYEES OF THE PORT OF REDWOOD CITY, AND REPEALING ALL ORDINANCES, OR PORTIONS THEREOF, IN CONFLICT HEREWITH – INTRODUCTION
Executive Director Giari explained that staff is preparing the Fiscal Year 2007 Budget. This Ordinance establishes a salary range for each position for FY07. Under the Ordinance, the Executive Director evaluates the performance of each Port staff member and determines the new annual salary for each individual within the prescribed range. The Executive Director’s salary shall be determined by the Port Commission.
A Motion to approve the Introduction with the insertion of a salary range of $0-$148,500 for the Port Manager (Executive Director) and waive the reading thereof was made by Commissioner Dodge. Commissioner Miller seconded the motion, which then passed by a unanimous roll call vote of all Commissioners.
At this time, Chairman Aikins moved to Item XII, Adjournment.
V. RESOLUTION
A. RESOLUTION APPROVING FOURTH AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (WDM, INC.)
A Motion to Approve was made by Commissioner Miller. Commissioner Garcia seconded the motion and it was passed by a unanimous voice vote of all Commissioners.
VI. MOTION
A. MOTION APPROVING AND AUTHORIZING SPONSORSHIP IN THE AMOUNT OF $______ FOR THE SPONSORSHIP OF THE REDWOOD CITY LIBRARY FOUNDATION
Executive Director Giari stated that there was a presentation by members of the Redwood City Library Foundation, Georgi LaBerge and Jeff Gee, at the Port Commission meeting of February 22, 2006 regarding the campaign for books for the new Redwood Shores library. The Foundation is requesting donations to provide the library with books and electronic information material. Port staff recommends a donation in the amount of $1,000.
Vice Chairman Castle commented that he was in favor of supporting the Redwood City Library Foundation. He suggested that Port staff consider holding the Awards Ceremony for the Port’s annual poster contest (2007) at the new library in Redwood Shores and encourage participation by the Redwood Shores school children.
A Motion to Approve sponsorship in the amount of $1,000.00 was made by Commissioner Dodge. Commissioner Garcia seconded the motion and it was passed by a unanimous roll call vote of all Commissioners.
MOTION
B. MOTION APPROVING AGREEMENT FOR SERVICES (WORKERS’ COMPENSATION COVERAGE), BETWEEN CITY OF REDWOOD CITY AND PORT OF REDWOOD CITY AND AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE AGREEMENT
Click Here to See Agenda Sheet for Motion for Workers Comp Agreement
Executive Director Giari explained that Port has obtained its Workers’ Compensation insurance coverage through the City of Redwood City for many years. The City is self-insured for the first “x” dollars of each claim, usually between $350,000 and $500,000 and also carries excess workers’ compensation insurance for any claim exceeding the self-insured retention. The City has offered to continue providing workers’ compensation coverage to the Port for FY07 and FY08 per a premium schedule in the documents provided for this Agenda item.
Vice Chairman Castle commented that he is in favor of accepting the City’s offer. Castle asked staff to research the procedure followed by the City in order to examine the legitimacy of continuing claims, and to learn how they handle claims quickly and expediently.
Chairman Aikins asked if the premium was variable depending on the payroll. Cynthia Hampton responded that it is a flat premium based upon estimated payroll; and, regardless of claims, the premium will not change for FY07 &FY08.
A Motion to Approve was made by Commissioner Dodge and it was seconded by Commissioner Castle. The motion was passed by a unanimous roll call vote of all Commissioners.
VII. REPORT/PRESENTATION
A. Quarterly Vessel and Tonnage Report (January 1, 2006 – March 31, 2006)
By Donald K. Snaman, Manager of Operations
Click Here for Agenda Sheet for Quarterly Vessel and Tonnage Report
Executive Director Giari reported that total tonnage for the 3rd quarter of FY06 was 383,750 metric tons. This was nearly 9% greater than the 3rd quarter of FY05 but 21% less than budget projections. Factors that affected the tonnage this quarter were repairs to the Cemex barge during February and March, which contributed to over 19,000 MT of the budget shortfall in dredged sand. Imported cement was underestimated partially due to the wettest March recorded in the Bay Area. Exported scrap metal was slightly under budget but we expect that to pick up by the end of the year.
Thirty-one vessels (13 ships, 18 barges) made calls during the 3rd quarter of FY06.
One hundred fifteen vessels (44 ships, 71 barges) made calls during the first three quarters of FY06.
Total tonnage for all commodities during the first three quarters of FY06 was 1,362,945 MT. This was below budget by 7%. Giari explained that the availability of imported aggregates is down due to a strong demand for aggregates in the Pacific Northwest. A breakdown by commodity can be viewed on the Ports website at www.redwoodcityport.com.
REPORT/PRESENTATION
B. Marine Terminal Plan, Phase 3 Report
By TEC,Inc. (Click here to view this report)
Executive Director Giari explained that the Port engaged TEC, Inc. to perform a preliminary design study for the replacements of Wharves 1 & 2. TEC divided the task into three phases; Phase 1 was a review of the overall cargo demand for the Port and the existing condition of the Port’s marine terminals; Phase 2 was the evaluation of alternative plans for the rebuilding of Wharves 1&2; and, Phase 3 was to develop a more detailed conceptual design, cost estimate, and project schedule for the recommended plan.
Dan Muslin, senior associate of TEC Infrastructure Consultants, LLC, gave an opening statement to the Port Commission and introduced Greg Douglas, project manager for the Marine Terminal Plan. Douglas began his presentation on the Phase 3 report by explaining that the primary focus for the Marine Terminal Plan is the redevelopment of Wharves 1&2 as they are critical to present and future cargo activity at the Port. The Wharf Redevelopment Plan and Demolition Plan were discussed along with the recommendation for complete removal of the existing timber wharf system, replacing it with a concrete supported platform. The Environmental & Permitting Review included discussion about the mitigation for demolition and construction and the NEPA/CEQA Process. A breakdown of cost estimates was provided to the Commission followed by the Project Schedule. Douglas finished his report by explaining the Project Execution Plan or “Where do we go from here?”
Commissioner Miller asked for information regarding the historic significance of Warehouse #1 and whether or not the Port would be permitted to tear it down.
Dan Muslin explained that a study by the Port and a determination by the State’s Historic Preservation office would first be made as to whether or not the warehouse is historic. If it is an historic building, Muslin explained the steps that would need to be taken in order to preserve and document the historic aspects of the warehouse before removing it.
Commissioner Dodge questioned if in the future the Port entered into a barge/container operation, would the wharf’s platform, designed to hold 500 pounds per square foot, be sufficient. Douglas replied that it would be sufficient for transfer of containers but not for storage.
Commissioner Garcia asked what the cost difference would be to go from 500 lbs. per sq. ft. to 1,000 lbs. per sq. ft. spread out over the potential life of the wharves. Douglas responded that it would be an increase of ten to twelve percent.
Commissioner Dodge asked for an explanation of the NEPA process. Muslin explained that the Corps of Engineers’ permit requirements trigger the NEPA environmental review process, which is a requirement of the federal government.
Commissioner Dodge questioned whether the wharves would be built to meet earthquake standards. Douglas replied that the design would meet earthquake codes and is classified as a non-essential use facility. If it were classified as an essential use facility, there would be a significant construction cost increase. Dodge commented that this is an area that should be examined further. In the event of an earthquake, at least one of the Port’s wharves should be built to meet seismic essential use standards.
Commissioner Castle agreed, saying that recent historical events have shown us that ports play a critical role in recovery from a disaster. He asked staff to research the possibility of obtaining federal/state funding in order to build one wharf that is seismically secure.
Chairman Aikins asked for clarification about the concrete retaining walls along the side of the wharf. Douglas explained that there would need to be some resolution to flooding at high tide issues. Additional investigation and surveys need to be done to determine the design and cost of the retaining wall. Douglas stated, however, that the 15% contingency in the costs would cover rebuilding or repairing the sea wall.
VIII. PUBLIC COMMENT
None
IX. MATTERS OF BOARD INTEREST
Commissioner Castle recommended that the Commissioners and staff read an article about the Dubai ports issue that was in The Marine Digest. He said the article put the issue well into perspective.
X. EXECUTIVE DIRECTOR'S REPORT
Executive Director Giari thanked Muslin and Douglas for giving an excellent report and said that there is much work to be done on Wharves 1&2 in the future.
Giari reported that the tall ships, The Lady Washington and the Hawaiian Chieftain had a successful visit at the Port. School children from the area visited the ships and participated in their historical battle re-enactment tours. Due to the Port’s guest dock (F-Dock) being damaged and out of service, Dave Garrett from Redwood City Landing made space available at his marina for the two historic ships. Giari stated that the Port appreciated Garrett’s assistance, which required the temporary relocation of a few of Garrett’s tenants.
Giari also reported on the Port’s participation in an historic Maritime Day event that will be held at the Port on May 13 &14 in cooperation with the San Mateo County History Museum. This event is being held in conjunction with the San Mateo County Sesquicentennial activities taking place throughout the year. The historic scow schooner, The Alma, will be at the Port and available for public tours on May 13 & 14. On Saturday, May 13th, joint programs with the Museum will include a free shuttle service between the Museum and the Port. In addition to touring The Alma, the public can view displays of historic vessels, historic Port photos, listen to sea shanty singers, tour historic rail cars and participate in a variety of interactive activities. Giari particularly thanked CEMEX, Basic Chemical Solutions, Cargill, Virginia City Rail Corporation and Seaport Industrial Association for contributing to this event, both with their donations and participation.
XI. CLOSED SESSION
At 9:42 a.m., the Board adjourned to Closed Session to discuss personnel matters – employee performance/evaluation per Government Code Section 54957. Executive Director.
At 10:00 a.m., Commissioner Castle left the meeting due to a conflict of schedules.
At 10:15 a.m., The Board reconvened. Chairman Aikins stated that a decision had been made to set the salary range for the Executive Director in the ORDINANCE ESTABLISHING SALARY PLAN FOR THE OFFICERS AND EMPLOYEES OF THE PORT OF REDWOOD CITY, AND REPEALING ALL ORDINANCES, OR PORTIONS THEREOF, IN CONFLICT HEREWITH that was deferred to the end of today’s Port Commission meeting.
At this time in the meeting, Chairman Aikins returned to Item IV-A, ORDINANCE ESTABLISHING SALARY PLAN FOR THE OFFICERS AND EMPLOYEES OF THE PORT OF REDWOOD CITY, AND REPEALING ALL ORDINANCES, OR PORTIONS THEREOF, IN CONFLICT HEREWITH. Please refer to Item IV-A above.
XII. ADJOURNMENT
At 10:20 a.m. Chairman Aikins requested that the Commission adjourn to its next regularly scheduled Meeting of April 26, 2006.
Motion to Adjourn was made by Commissioner Garcia. The motion was seconded by Commissioner Miller. The motion passed by a unanimous voice vote of the Commissioners present. Commissioner Castle was absent.
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