BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – January 14, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Vice Chairman Garcia, presiding
Commissioners Present: Larry Aikins; Lorianna Kastrop; Secretary Richard Claire; and, Vice Chairman Ralph Garcia, Jr.
Commissioners Absent: Chairman Richard Dodge
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; Assistant Manager of Operations, Eric Napralla; Accounting Clerk, Linda Hawkins; and, 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 December 10, 2008 was made by Commissioner Claire and Seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
III. CLAIMS
Commissioner Kastrop referred to a payment made for animal control-trapping and asked what type of animal was trapped. Executive Director Giari explained that there were skunks under the Port’s administration building. Basic Chemical Solutions, a Port tenant with offices adjacent to the Port administration offices, are still trying to get rid of skunks that are impacting their area so there may be a future expense for this.
A Motion to Approve Claims was made by Commissioner Aikins and it was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
IV. RESOLUTION
A. RESOLUTION APPROVING FIRST AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (FOOMOJO, INC.)
Executive Director Giari explained that the original sublease agreement for Foomojo, Inc. was approved at the last Port Commission Meeting. They have expanded their space and are moving into two adjoining suites for a total of approximately 6,000 sq. ft. Foomojo, Inc. is a major new tenant for Portside Investors.
A Motion to Adopt was made by Commissioner Kastrop. It was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
RESOLUTION
B. RESOLUTION APPROVING THIRD AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (DYNA COMP, INC.)
A Motion to Adopt was made by Commissioner Aikins. It was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
RESOLUTION
C. RESOLUTION AUTHORIZING AND DIRECTING EXECUTION OF COVENANT AND RECORDATION THEREOF – (FORMER LIQUID BULK TERMINAL SITE)
Executive Director Giari explained that as required by the Health and Safety Code, Department of Toxic Substances Control (DTSC) is requiring the Port to enter into a Land Use Covenant (LUC) to restrict future uses at the site. The property, as remediated, does not present an unacceptable risk to commercial and industrial workers. The LUC will not allow the use of the site for residence, hospital, park, school or day care center. The LUC also requires any future activities disturbing the ground surface at the site be performed in accordance with a Health & Safety Plan and a Soil Management Plan approved by DTSC. The Port will be able to have generic plans drafted by a certified industrial hygienist/professional engineer and provided to any future user of the property, instead of each project proponent having these plans drafted and approved individually.
Giari said the Port is required to continue monitoring a network of 12 monitoring wells in and around the site and report the results twice a year to DTSC. The LUC requires that activities on the site do not interfere with, or access to, the groundwater monitoring wells.
Commissioner Claire asked if commercial use includes offices and restaurants and Giari answered, “Yes”.
Commissioner Kastrop asked if there was a “Sunset Clause” pertaining to the annual inspection reports submitted to DTSC. Don Snaman, Manager of Operations, explained that there are two items involved: (1) Monitoring of the groundwater monitoring wells can be stopped after two years of consecutive “no detect” or below risk levels. (2) Inspections for the LUC will have to be done annually in perpetuity but the Port has the right to request modifications and/or termination with approval by DTSC. These are visual inspections of the site to determine that the wells are still there, are accessible and that the site is being used as per the LUC.
Commissioner Aikins inquired as to why the Port would draft a generic Health & Safety Plan and a generic Soil Management Plan to provide to any future user of the property. Snaman explained that staff would like to provide generic plans, approved by DTSC, to each project proponent at that site. Tenants would have to abide by that plan and we would not have to go back to DTSC every time a potential tenant comes in. DTSC has provided us with sample plans used in the South Bay Area.
A Motion to Adopt was made by Commissioner Claire. It was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
V. MOTION
A. MOTION TO APPROVE AGREEMENT FOR SECURITY/EMERGENCY MANAGEMENT CONSULTATION AND TRAINING AND AUTHORIZING EXECUTION THEREOF – (AANKO TECHNOLOGIES, INC.)
Executive Director Giari presented the staff report on this item involving the Port and Aanko Technologies entering into an agreement for security/emergency management consultation and training services. The staff report mentions Federal and State grants that the Port has received for port security will fund the bulk of the contract cost and the Port would be responsible for approximately $15,000-$20,000 of the total cost. However, staff was informed yesterday that part of the grant money that was planned to pay for Aanko’s services, which comes from a State grant funded by Proposition 1B bonds, has been suspended by the California Office of Homeland Security. In light of that, staff would like to review the scope of work and recommends that the Port Commission postpone action on this item at this time.
Commissioner Aikins commented that about half of Aanko’s proposal is related to the TWIC infrastructure and asked if that is still planned for 2009. Eric Napralla, Assistant Manager of Operations, explained that by the end of February 2009 all persons requiring unescorted access into the Port’s restricted areas will be required to have a TWIC card. However, a date has not been set for the requirements for implementing card readers in the second phase of the TWIC regulations.
Executive Director Giari commented that there are some funds available for tasks outlined in the scope of work in this agreement but because of the short notice of the suspension of funds by the California Office of Homeland Security, staff would like to review this agreement. We have a grant from the Federal Government to pay for part of the TWIC costs but it does not include designing the infrastructure for the readers. Napralla explained that staff plans to contact the Department of Homeland Security and FEMA to see if some of the grant money that was awarded to the Port for the TWIC project could be used for designing the infrastructure for the readers. Aikins asked if any progress on wireless technology had been made in the TWIC program. Napralla answered that a few pilot projects are underway at various ports in the U.S. but that he has not heard anything positive about wireless readers.
Commissioner Kastrop referred to the workplan which targeted May 8 as the date for the TWIC design specifications and asked how this could be done if the Federal Government has not provided all of the parameters. Napralla explained that Aanko would put requirements that the card reader would have to meet into the design and specifications without identifying the card reader that would actually be used for the project.
Vice Chairman Garcia tabled this matter and no action was taken by the Board.
MOTION
B. MOTION APPROVING AND AUTHORIZING EXECUTION OF AMENDMENT NO. 1 TO THE MEMORANDUM OF AGREEMENT – BAY AREA SEAPORTS AIR EMISSIONS INVENTORY
Executive Director Giari explained that the Port of Redwood City is working with other San Francisco Bay Area ports and the Bay Area Air Quality Management District (BAAQMD) on the “Green Ports Initiative”, which focuses on setting air quality goals to reduce air pollutants from marine port activities. The focus of this inventory and the work we have done to date, as well as the proposed future work here, are diesel air emissions. In January 2008, the Port Commission approved a Memorandum of Agreement (MOA) between BAAQMD and the five Bay Area ports to conduct an air emissions inventory. Moffat & Nichol and Environ were hired to perform data collection and develop the work plan for the inventory (Phases I and II). The cost was shared $50,000 by BAAQMD and $50,000 by the ports, with each port contributing $10,000.
Phases III and IV of the Inventory consist of all parties to the MOA agreeing on the final air emissions inventory methodology/work plan and execution of the work plan. BAAQMD is not able to share the cost of compiling the detailed report with emissions broken down by various sources and locations for each port. However, BAAQMD is willing to contribute in-kind performance of certain tasks to calculate these emissions. As a result, the cost for completing Phase IV was reduced from approximately $250,000 to $185,000. The cost share for each port is apportioned based on the number of sources of emissions and other factors that must be calculated for each port.
Approval of the Amendment to the MOA will authorize payment of the Port of Redwood City’s contribution of $45,000. As a result of the work to date by the San Francisco Bay Area ports, BAAQMD will rely on State Air Resources Board regulations which apply to sources of emissions at seaports including vessels and trucks. BAAQMD will work with the ports to review the final report and develop options for voluntary measures to be undertaken to further reduce emissions.
Giari commented that it is important to complete Phase IV because it will provide base line data to quantify emissions. It demonstrates that the ports are proactively working in collaboration with local and state agencies to use common data to develop emission reduction strategies and goals.
Commissioner Claire commented that CEMEX is the only operation located on private land in Redwood City that is included in the Port’s inventory and that is because they move cement across Port wharves. He asked if that also included trucks. Giari explained that the Air District recognizes that the plan they are putting together is not entirely encompassing because the private marine terminals in the Bay Area are excluded from the Inventory.
Commissioner Kastrop asked for more information regarding what BAAQMD goals are trying to be met with this Inventory and with their other activities related to ports. Kastrop asked if BAAQMD, as the regulatory agency, has enforcement authority. She commented that the ports are partnering with BAAQMD to obtain data and asked how much input the ports would have in developing regulations.
Giari explained that the Port Industry, nationwide, has been identified as a major source of diesel emissions, particularly the Ports of Los Angeles and Long Beach. Here in the Bay Area, the ports want to perform an Inventory and understand the problem, which we believe is significantly different than the problem in Southern California. The ports want to work with the Air District to develop options for voluntary measures for ports, private terminal operators, and vessels in order to reduce the health impacts from air emissions. The Air District for the Bay Area and the State’s Air Resources Board have both regulatory and enforcement authority. At the same time that we are developing a regional plan, the State is enacting state wide regulations that apply to all sources. Giari commented that it is a very complex issue which the ports in California are taking the lead on. Commissioner Kastrop asked that there be follow up when the inventory is completed on where we are going with the use of this information.
Commissioner Aikins commented that costs are not to exceed $185,000 and asked if that also meant that the Port’s share would not exceed $45,000. Giari confirmed that, saying that if there was a change, it would have to be brought back before the Port Commission for approval.
A Motion to Approve was made by Commissioner Kastrop. It was seconded by Commissioner Claire. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
VI. REPORT/PRESENTATION:
By Donald K. Snaman, Manager of Operations
A. Mid-Year Tonnage and Vessel Report – (July 1, 2008-December 31, 2008)
Don Snaman reported that total tonnage for all commodities during the first half of FY09 was 663,412 MT. This was a decrease of 2,857 MT, or less one percent than the first half of FY08. Compared to the FY09 Budget, the first half tonnage was 187,588 MT, or nearly 22 percent less than Budget.
There were no imports of cement and dredged sand during the first half of the fiscal year. Cemex is not expecting any increase in demand for cement for the next 12-18 months and will continue import by rail to serve local demands. Cemex is planning to serve the local fill sand market by selling third party dredged sand brought through the barge dock on the nine acre site at the end of Seaport Blvd. PABCO is currently renovating and improving their Newark wallboard plant and is expecting to renew shipments of gypsum in the 4th quarter of this fiscal year.
Due to the lack of available local sand and aggregates for the construction industry, the Port imported over 300,000 MT of sand and aggregates during the first half of the fiscal year, or nearly 47% of total first half tonnage.
Thirty-one vessels (25 ships and 6 barges) made calls during the first half of FY09 compared to fifty vessels (21 ships and 29 barges during the first half of FY08.
Executive Director Giari commented that he met with PABCO representatives yesterday and reported that when PABCO reopens at the Port in May, they plan to use inventory currently stockpiled at the Port through June, 2009. We may not see any new shipments of gypsum through the end of this fiscal year.
VII. PUBLIC COMMENT:
None
VIII. MATTERS OF BOARD INTEREST
Commissioner Kastrop reported that she was pleased and honored to speak to the American Association of University Women at their monthly meeting on Saturday, January 10. Kastrop commented that her one hour talk about the Port was very well received with many engaging questions. Many people remarked to Kastrop that they had not realized how important the Port is to Redwood City and to the Bay Area regional economy.
Ms. Kastrop next commented that prices are plummeting in the construction industry and requested that if the Port has any infrastructure projects planned, that they be moved up to take advantage of the lower costs.
IX. EXECUTIVE DIRECTOR'S REPORT
Executive Director Giari gave an update on the Maintenance Dredging Project for the Redwood City Channel reporting that the project commenced on December 2, 2008 and will work through January 15, 2009, at which time the “fish window” closes and work will stop. The project has gone very well with all the dredge material transported to a pump station where it is then pumped to Inner Bair Island for the Bair Island Marsh Restoration Project. Giari said that approximately 170,000 cubic yards should be dredged by the end of January 15. The deposit of the material on Bair Island is a good example of how the dredge material from Redwood City can be used for marsh restoration and other environmental projects in the South Bay.
Giari commented that the new depth of the channel will be determined when the final survey is completed. The Channel is authorized at 30 feet and we estimate that after the final survey is completed, it will probably be closer to 27 feet. We will be talking to the U.S. Army Corps of Engineers and our representatives in Washington, D.C. about funding in FY 2010 for further maintenance dredging.
X. ADJOURNMENT
At 8:53 a.m. Vice Chairman Garcia requested that the Commission adjourn to its next regularly scheduled Meeting of January 28, 2009. A Motion to Adjourn was made by Commissioner Kastrop and it was seconded by Commissioner Claire. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
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