BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – December 12, 2007
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Miller, presiding
Commissioners Present: Commissioner Richard S. Claire; Commissioner Ralph A. Garcia, Jr.; Secretary Larry R. Aikins; Vice Chairman, Richard A. Dodge; and, Chairman, Lewis D. Miller
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 Economic Development, Steve Wright; Manager of Operations, Donald K. Snaman; Assistant Manager of Operations, Eric Napralla; Executive Assistant, Rita F. Artist
Commissioner Claire led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of November 28, 2007 was made by Commissioner Garcia and Seconded by Commissioner Aikins. Commissioner Dodge abstained. The motion passed by a unanimous voice vote of all Commissioners present at the November 28 meeting.
III. CLAIMS
Commissioner Aikins inquired about a payment made to Brian, Kangas & Faulk. Executive Director Giari explained that the payment was for drafting plans and specifications to replace the roof on the administration building. Commissioner Garcia asked that in lieu of the potential of the administration offices moving to a new ferry terminal building in the future; could the existing roof just be repaired? Giari replied that the roof is already leaking in a few spots.
A Motion to Approve Claims was made by Commissioner Garcia and it was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of all Commissioners.
IV. RESOLUTION
A. RESOLUTION APPROVING EIGHTH AMENDMENT TO STANDARD SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (EXP PRODUCTION, INC.)
A Motion to Adopt was made by Commissioner Dodge. It was seconded by Commissioner Aikins. The motion passed by a unanimous roll call vote of all Commissioners present.
RESOLUTION
B. RESOLUTION TERMINATING REIMBURSEMENT AGREEMENT IN CONNECTION WITH 475 SEAPORT BOULEVARD – (EAGLE ROCK AGGREGATES, INC.)
Executive Director Giari explained that in February 2004, the Port Commission approved a reimbursement agreement with Eagle Rock Aggregates in connection with the CEQA review for an imported aggregate terminal project proposed by Eagle Rock. Under the reimbursement agreement, Eagle Rock deposited with the Port the funds to pay the estimated cost of the CEQA review.
The Port contracted with AMEC Environmental to perform the CEQA review. Following circulation of the Notice of Intent and draft Mitigated Negative Declaration and receipt of comments on the proposed project, the final MND was approved by the Port Commission in May 2007. The amount deposited with the Port by Eagle Rock was $115,780.00. The cost of AMEC Environmental’s services and the administrative fee to the Port was $103,085.62 leaving a remaining balance of $12,694.38 to be reimbursed to Eagle Rock.
In addition to the scope of work having been completed by AMEC, the reimbursement is recommended for approval because Eagle Rock has changed its plans for the proposed project and, as a result of forming an Alliance with Cemex Aggregates, is planning the development of a construction materials park at the Cemex site.
A Motion to Adopt was made by Commissioner Garcia. It was seconded by Commissioner Dodge. The motion passed by a unanimous roll call vote of all Commissioners present.
RESOLUTION
C. RESOLUTION APPROVING CONTRACT DOCUMENTS FOR THE FORMER LBT DEMOLITION AND SITE REMEDIATION SUPPLEMENTAL OFF-SITE WORK PROJECT AND AUTHORIZING AND DIRECTING ADVERTISEMENT FOR BIDS THEREFOR
Click here to view the staff agenda sheet and documents for this item
Executive Director Giari explained that after the Port completed soil remediation and removal of tanks at the LBT, there was still some remaining contamination surrounding the underground pipelines connecting the LBT with Wharf 5. DTSC asked the Port to perform additional work to clean up this contamination and on November 20, 2007 the Port received approval from DTSC of the supplemental workplan for this project. Don Snaman gave a brief description of the workplan and stated that bids for the project are due at the Port offices on January 17, 2008. Port staff is anticipating a resolution for award of the contract to be on the agenda of the scheduled Board meeting on January 23, 2008.
Commissioner Dodge asked what actions had been taken to control noise and odor. Snaman stated that the contract documents require the contractor to perform noise, odor, and dust abatement.
Commissioner Aikins asked about the cost of this project and Snaman responded that URS Engineers estimate it to be about $100,000-$150,000.
A Motion to Adopt was made by Commissioner Aikins. It was seconded by Commissioner Dodge. The motion passed by a unanimous roll call vote of all Commissioners present.
V. MOTION
A. MOTION TO APPROVE AGREEMENT FOR EMERGENCY MANAGEMENT TRAINING AND CONSULTATION ASSISTANCE AND AUTHORIZING EXECUTION THEREOF – (AANKO TECHNOLOGIES, INC.)
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Executive Director Giari explained that this is an annual contract the Port has had since 2003 with Aanko to provide professional services on security and emergency planning for the Port. Eric Napralla, Assistant Manager of Operations, summarized the scope of work, which includes emergency response training for Port staff, Coast Guard required drill and exercise, facility security and emergency response plans, and miscellaneous support. The Port has received $11,000 in two federal grants and some of these tasks are eligible for partial reimbursement under these grants.
Commissioner Aikins inquired about state grant money already received by the Port. Napralla explained that in 2005 the Port received a state grant that was used for new fencing, a new guard shack, and some emergency response training.
Commissioner Aikins commented that the Port has gone through all of this several years in a row and asked if the guidelines and requirements are changing. Napralla responded that the U.S. Coast Guard Security Requirements are changing. One example is the current implementation of the TWIC program. There are also certain requirements for emergency response training that public agencies must meet in order to be eligible for FEMA reimbursement in the event of a major disaster.
Commissioner Dodge asked if the new water transit bill has any funds available for security and emergency response training. Giari responded that the new Water Emergency Transit Agency (WETA) has not been formed as yet and has not developed their specific plan for creating an emergency water transit system for the EIR/EIS for Redwood City’s ferry service. WETA will have funding available through Prop 1B bonds for water transit emergency preparedness and training. The Port will also be seeking funding from WETA.
A Motion to Approve was made by Commissioner Aikins. It was seconded by Commissioner Dodge. The motion passed by a unanimous roll call vote of all Commissioners present.
VI. REPORT/PRESENTATION:
PROGRESS REPORT ON THE PORT OF REDWOOD CITY’S STRATEGIC ASSESSMENT By TranSystems, Inc.
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Executive Director Giari explained that the Port has undertaken a maritime strategic assessment for the Port with TranSystems. The purpose is to analyze current maritime business at the Port and evaluate its strengths and weaknesses, opportunities and threats, and look at the possibilities for maritime business expansion or improvement at the Port.
Roger Passal, Project Manager for TranSystems, began his report with a brief profile of TranSystems and the team assigned to the Port’s Strategic Assessment project. He explained the project’s methodology, which included interviews with Port Commissioners, staff, customers, and other stakeholders. Passal stated that the Port’s Strengths, Weaknesses, Opportunities and Threats Analysis showed the Port business is established on marine transportation of bulk commodities with long-term customers and continual profitability. Its weaknesses were primarily due to an inadequate channel depth, the San Mateo Bridge air draft, and land constraint. Interestingly, opportunities included land availability from 9-acres at the former Liquid Bulk Terminal and the Saltworks development. Passal also mentioned the possibility of recyclables expansion and automobile imports. The Port’s business is tied to building materials and a current threat to profitability is that local demand shows construction activity to be down at this time. Other threats are competitive ports and gentrification along the waterfront. Strategic alternatives include maintaining the present course and expanding with existing tenants, being proactive on land expansion, and becoming a recycling Port. In conclusion, Passal reviewed preliminary recommendations for the Port to choose a strategy, research other opportunities, and devise a strategic plan showing what the Port will look like in 10 years.
Chairman Lewis commented that the Port handled lumber several years ago and asked if we should start looking at it again as a potential cargo. Passal replied that lumber is coming to the Bay Area by truck and rail from British Columbia but is heading to Stockton or Sacramento where the building materials are needed.
Commissioner Garcia asked if TranSystems is going to show the Board a comparison of the advantages of a deeper channel in their final report. Dennis Sheridan, TranSystems, said they would address a deeper draft and its impact on which vessels could access the Port.
Commissioner Dodge commented on Short Sea Shipping and said that there has been a huge increase in truck traffic in the past three years, which is expected to continue to increase in the future. He asked if we should continue to educate ourselves on Short Sea Shipping. Passal said that legislation is needed to get it started but that it may just take off - it has to happen sooner or later. Sheridan explained that it may be 5-years away but studies are taking place today so it is advisable to position yourself today to be part of it in the future.
Commissioner Dodge also commented on the construction materials demand being down and said that long range studies say that the volume is going to increase in 2010-2020 by maybe 50% of what we see today. He asked if TranSystems was looking at that possibility 15 years down the road. Sheridan said that the overall trend for construction materials is up in the long term because of the population growth in the region.
Passal said that, in his opinion, Ro-Ro for Short Sea Shipping is the way to go but you need land for that alternative. Commissioner Dodge asked if the final report would give direction on how much land will be needed and Commissioner Aikins asked what Ro-Ro commodities are going through the Ports of Richmond and Benicia. Sheridan responded that Benicia Toyota uses about 35 acres of land.
Commissioner Garcia commented on outside investors coming in and asked if port operators give up control to them. Sheridan said that on the West Coast terminal operators typically take control of all operations and marketing.
Chairman Miller thanked Passal and Sheridan for giving an excellent report.
VII. PUBLIC COMMENT
- None
VIII. MATTERS OF BOARD INTEREST
- None
IX. EXECUTIVE DIRECTOR'S REPORT:
Executive Director Giari commented that the Toys for Tots train was decorated at the Port over the last several weeks by volunteers organized by CalTrain and other groups. The Port provided spur track for the holiday train, which made a very successful trip down the Peninsula last weekend. It will be back at the Port this week for dismantling of the decorations and preparing the train to be put back into service.
X. ADJOURNMENT:
At 9:15 a.m. Chairman Miller requested that the Commission adjourn to its next regularly scheduled Meeting of December 26, 2007.
A Motion to Adjourn was made by Commissioner Aikins. The motion was seconded by Commissioner Dodge and was passed by a unanimous voice vote of all Commissioners present.
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