BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – July 26, 2006
MINUTES
I. CALL TO ORDER
8:00 A.M. Chairman Aikins, presiding
Commissioners Present: Commissioner Richard (Dick) Dodge, Secretary Lewis (Lew) Miller, and Chairman Larry R. Aikins
Commissioners Absent: Commissioner Ralph A. Garcia, Jr.; Vice Chairman John (Jack) Castle
Staff Present: Special Counsel to Port Francois X. Sorba; Director of Finance & Administration, Cynthia D. Hampton; Manager of Economic Development, Steven Wright; Manager of Operations, Donald K. Snaman; Assistant Manager of Operations, Eric Napralla; Executive Assistant, Rita F. Artist; Staff Accountant, Evelyn Lim.
Commissioner Miller led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of June 28, 2006 was made by Commissioner Dodge with the stipulation that a correction be made showing that Eric Napralla, Assistant Operations Manager, was present. The Motion was Seconded by Commissioner Miller and passed by a unanimous voice vote of all Commissioners present. Commissioners Garcia and Castle were absent.
Due to a lack of quorum of Commissioners present at the July 12, 2006 meeting, Chairman Aikins deferred approval of the minutes for that meeting to the next Port Commission meeting.
III. CLAIMS
Commissioner Aikins inquired about a payment made to Insight Engineering for security fence engineering, asking if grant money was available for this item or if it was a Port expense. Don Snaman explained that the Port was awarded a State Grant in the amount of $150,000, which will be used for perimeter security fencing, starting at the gates into the main entrance to the Administration Building and continuing down Seaport Boulevard to Westpoint Slough. Fencing and gates will be installed to help control the free access traffic off of Seaport Boulevard. Contract documents will be presented to the Commissioners for approval at an upcoming Port Commission meeting.
A Motion to Approve Claims was made by Commissioner Miller and was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of the Commissioners present. Commissioners Garcia and Castle were absent.
IV. RESOLUTION
A. RESOLUTION ACCEPTING BID FOR THE EXISTING DRY BOAT STORAGE SITE IMPROVEMENT PROJECT AT THE PORT OF REDWOOD CITY; AUTHORIZING EXECUTION OF AGREEMENT FOR SAID WORK; AND DIRECTING RETURN OF DEPOSITS.
Click here to view the staff agenda sheet and documents for this item.
Donald Snaman, Manager of Operations, explained that on June 14, 2006 the Port Commission approved contract documents for fencing, paving, and other improvements at the launch ramp parking and dry boat storage areas including installing a perimeter fence with sliding gates to enclose and formalize the dry boat storage area. At that meeting staff presented to the Commissioners a change to the contract documents whereby slurry seal would be used on the newer portion of the parking area and the older portion of the parking area would be repaved. Because of that change, the engineer’s estimate was reduced from $304,472 to $282,000. An Invitation for Bids was provided to local contractor exchanges, other known interested contractors, and was published in a local newspaper. Nine contractors received the plans and specifications. One addendum was issued on July 11 clarifying details in the drawings. On July 14, 2006, seven bids were received. The lowest bid was submitted by Union City Construction in the amount of $216,860.50. Port’s engineer, BKF Engineers, reviewed all bids received and is recommending the Port award the contract to Union City Construction. Port Attorney and staff have reviewed status of the contractor’s license, their bond and insurance status and have found all to be in good order. Port staff is recommending execution of an agreement with Union City Construction, Fremont, CA for improvements to the dry boat storage area. Upon issuance of the Notice to Proceed, Union City will have 70 days to complete the project. Construction is expected to be complete by Nov. 1, 2006.
A Motion to Adopt was made by Commissioner Dodge and was seconded by Commissioner Miller. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioners Garcia and Castle were absent.
RESOLUTION
B. RESOLUTION APPROVING SUBLEASE AGREEMENT – (Portside Investors – Phase I Standard Lease Agreement) – (FRENGO CORPORATION)
A Motion to Adopt was made by Commissioner Dodge and was seconded by Commissioner Miller. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioners Garcia and Castle were absent.
At 8:10 AM all Port Commission action items were completed and Attorney Sorba left the meeting due to a previously scheduled court case.
V. PRESENTATION
A. ANNUAL TONNAGE AND VESSEL REPORT FOR FISCAL YEAR 2006
By: Donald K. Snaman, Manager of Operations and Eric Napralla, Assistant Operations Manager
Click here to view this report (pdf file).
Click here to view this presentation (ppt file).
Donald Snaman stated that this presentation updates the documents that were provided in the Port Commissioners’ packets for this item.
Tonnage for the 4th quarter of FY06 was 407,000 MT, approximately 8% less than 4th quarter of the previous year. We were within 11,000 MT of budget with 4th quarter FY06 tonnage about 2% ahead of 4th quarter budget projections.
Thirty-six vessels (16 ships, 20 barges) made calls during the 4th quarter of FY06 compared to 33 vessels (16 ships, 17 barges) during the 4th quarter of FY05. Thirty-nine vessels (14 ships, 25 barges) were projected for budget purposes for the 4th quarter of FY06.
Total tonnage for all commodities in FY06 was 1,833,022 MT. This was a decrease of 75,149 MT, or nearly 4%, under all of FY05 (1,908,172 MT). Approximate percentage breakdowns by commodities: imported cement 33%; exported scrap metal 19%; imported gypsum 18%; imported limestone 10%; dredged sand 9%; imported sand 7%; bauxite 4%. Increases in imported cement and imported gypsum tonnages helped offset tonnage losses of dredged sand, imported sand and exported scrap metal. Note that total tonnage for FY 06 for imported cement (602,469 MT) and imported gypsum (321,779 MT) are records for these commodities crossing the docks at the Port of Redwood City. FY06 total tonnage was less than FY06 total budget by 96,978 MT, or 5%.
One hundred fifty-one vessels (60 ships, 91 barges) made calls during all of FY06 compared to one hundred fifty-six vessels (60 ships, 96 barges) during all of FY05. One hundred fifty-seven vessels (59 ships, 98 barges) were projected for budget purposes for all of FY06.
Snaman concluded that although FY06 tonnage was not quite as high as last year, Fiscal Year 2006 was the second busiest year for the Port with a total tonnage of 1.8 million MT.
PRESENTATION
B: CEMEX PROPERTY IMPROVEMENTS
By: Terminal Manager, Chris Olivas and Project Engineer, Jack Robertson
Click here to view this presentation.
Steve Wright, Manager or Economic Management, reported that CEMEX has completed its acquisition of the RMC Pacific operation, and after one year of infrastructure assessments, has decided to make substantial changes to their cement storage and load out operations on CEMEX’s property.
Chris Olivas, Terminal Manager of CEMEX at 876 Seaport Boulevard, presented an overview of projects they are proposing in order to improve operations, and environmental and community relations. Major changes include upgrading an existing truck loading system, installing a second two spout truck loading system, and centralizing cement storage and loading to a vicinity of the terminal that is further away from Pacific Shores Center. By moving the truck loading system to the west side of the facility, any truck line-up will be accommodated within the confines of the CEMEX property and will not back up onto Frontage Road. Roads on CEMEX property will be paved in order to mitigate dust during the dry season and minimize mud track out during the rainy season.
Commissioner Miller asked if CEMEX is still loading from railcars on the South side and Olivas responded “Yes” and that they plan to continue that operation. Commissioner Dodge questioned, “Do you anticipate that since you are reducing the truck wait time, is that going to make you a more attractive source for cement and increase your volume?” Olivas replied that it definitely will allow us to increase our volume. We are anticipating 4-5 minute loading times compared to the current 9-10 minutes, not including wait time. Chairman Aikins asked if two trucks would be loaded at the same time and Olivas explained that they would have two trailers being loaded at the same time. Currently we are able to load only one trailer at a time and we have to shift the truck either forward or back in order to get to the trailer being loaded.
Commissioner Dodge stated that there are easements on the CEMEX property and inquired about whether or not CEMEX had researched the possibility of infringing on any current easements. Olivas did not know the answer and said he would pass the question on to engineers working with the City. In response to an inquiry from Chairman Aikins about their interaction with the City for approvals, Jack Robertson, Project Engineer, said they have requested a building permit and the City’s Planning Department has asked that the use permit be reviewed to determine that CEMEX is within its rules and have not modified the use by changing and updating equipment. He stated that the City wants to more thoroughly understand what we are doing and CEMEX is providing the answers to their questions. CEMEX believes that with modern equipment, they will be able to provide cement load out facilities in a more efficient and environmentally friendly fashion. CEMEX consultants have worked with the City previously and think that any questions will be resolved in a timely fashion.
Chairman Aikins asked if they had an estimate of the cost for these improvements. Robertson replied that several million dollars had been budgeted for the “Phase I & Phase II” projects, which are the two load out facilities. CEMEX considers this a considerable investment and one that will pay off both monetarily and from an environmental and operational standpoint.
VI. PUBLIC COMMENT
Ty Swanson, 1271 Dewey Street, Redwood City, stated that he was interested in bringing a seminar and a public celebration to the Port around Thanksgiving. Swanson said he would use this event as a catalyst for marketing his new educational non profit and intends to explain to the public what is going on with new NANO and BIO technologies. Swanson said he would like the use of the boat launch ramp parking lot. In response to Commissioner Miller’s inquiry about what his non profit was about, Swanson replied that it was not yet created but that it would be an educational non profit, explaining to the public what is going on with new NANO and BIO technologies.
Chairman Aikins suggested that Mr. Swanson contact Port staff members.
VII. MATTERS OF BOARD INTEREST
Commissioner Miller reported that he and Executive Assistant, Rita Artist, attended an American Association of Port Authorities (AAPA) Emergency Preparation and Response Seminar in Portland on July 11-13. One of the messages that Miller gave to the Board regarding emergency preparation was to PLAN, PLAN, PLAN. Then, TEST your plan, MODIFY the plan, and RETEST, etc. Miller said this message was repeated in each presentation of the conference. Miller also said that although the ports had planned for major problems, many of the ports had overlooked the same small things, such as planning for: availability of payroll for the staff after a disaster; inability to communicate because communication with cell phone towers was down or frequencies were taken over by Federal government; pre-authorization of staff by the Port Commission to make emergency purchases and perform emergency work, etc. Commissioner Miller thought it was a very good conference and said we should make sure that not only do we have a plan, but that the plan has been tested and modified a number of times.
Rita Artist reported that AAPA conference speakers had related stories about unexpected happenings. An instance was recalled in which one port was required to provide berthing to a cruise ship that was used to shelter college students. The port was required to empty out a warehouse for use as a shelter for relief agency workers. In general, the public flocked to the ports for either rescue or evacuation and the ports were not prepared. Speakers said that it was important to assume that port staff will be on their own for long periods of time – PLAN ON IT.
It was recommended that one voice be designated to speak for the Port. Expect the media to call, knock at the door, and fly helicopters overhead. Have bulletins ready in order to answer questions about the Port and its customers. Prepare templates for use in preparing press releases and statements. During and following a disaster, staff members should document actions and accumulate information so that up to date information will be available. The plan should have a predetermined location for media to gather. For videotaping or photographing purposes, port officials should escort the media to the location. Port staff needs to have as much control as possible in order to maintain the Plan and provide correct information to the media.
Chairman Aikins asked if many of the conference presentations were Katrina oriented. Ms. Artist responded that although some were hurricane oriented, one of the speakers was an attorney who had been present at the Port Authority of New York/New Jersey during 9/11. He brought up many legal issues, which we have provided to the Executive Director. The conference speaker emphasized that it is important to know if those issues are covered in the Port’s plan.
VIII. EXECUTIVE DIRECTOR'S REPORT
None
VI. ADJOURNMENT
At 8:42 a.m. Chairman Aikins requested that the Commission adjourn to its next regularly scheduled Meeting of August 9, 2006
A Motion to Adjourn was made by Commissioner Miller and Seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of those Commissioners present. Commissioners Garcia and Castle were absent.
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