BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – May 13, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Dick Dodge, presiding
Commissioners Present: Vice Chairman Ralph Garcia, Commissioner Larry Aikins and Commissioner Lorianna Kastrop
Commissioners Absent: Secretary Dick Claire
Staff Present: Executive Director, Michael J. Giari; Special Counsel to Port, Francois X. Sorba; Director of Finance & Administration, Cynthia D. Hampton; Assistant Manager of Operations, Eric Napralla; Accounting Clerk, Linda Hawkins; and, Administrative Assistant, Margaret Astesano
Commissioner Aikins led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of April 22, 2009 was made by Commissioner Aikins and Seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
III. CLAIMS
Commissioner Aikins questioned the number of checks to City of Redwood City Benefits and California Public Employees Retirement System (CALPERS). Ms. Hampton explained that with regard to CALPERS typically that is paid with one check every pay period, however the City of Redwood City prepaid the employer portion of the contribution without notifying the Port. Eventually when CALPERS caught up with their reconciliations, they realized that it had already been paid and the Port had credits which were larger than what The Port had left to take in a year. Since the credits were larger than what The Port could take, The City took the credits and we are reimbursing them. Ms. Hampton stated she would compile a memo to the Commission regarding this issue as well.
A Motion to Approve Claims was made by Commissioner Garcia and it was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
IV. RESOLUTION
A. RESOLUTION APPROVING SECOND AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (Connect Tech West, Inc.)
B. RESOLUTION APPROVING THIRD AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (Stockbridge Leasing Co.)
C. RESOLUTION APPROVING THIRD AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement)– (IGROUP Network, Inc.)
Mike Giari indicated that all three of these tenants are current tenants and are renewing their lease.
Items IV-A and IV-C were discussed and handled as one item. A Motion to Adopt was made by Commissioner Aikins. It was seconded by Commissioner Garcia. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Claire was absent.
D. RESOLUTION SUPPORTING THE CITYOF REDWOOD CITY 2009 SUMMER CONCERT SERIES
The Redwood City Civic Cultural Commission has requested financial support for the 2009 Summer Concert Series, specifically for “Music in the Park”. The letter from Commissioner Warren Dale requests financial support in the amount of $7,500. The letter reports that there was a series of eight concerts held at Stafford Park in the Summer of 2008, with approx. 1000 people in attendance at each concert. The Port is featured in the promotional material that was distributed prior to the concert and appeared on a large banner that is hung over the stage at each concert. The Civic Cultural Commission and The City of Redwood City are planning to repeat this promotion of The Port in the 2009 Concert Series. As they have done in the past, The City has agreed to assist the Port in arranging a concert at the Port as part of the Music in the Park contribution. The Port budget includes $7,500 for the Music in the Park contribution.
Steve Cortez, Commissioner with the Civic Cultural Commission spoke about how the two groups have fostered a good relationship in promoting the culture and the vitality of The City of Redwood City. The Stafford Park Concert Series are very well attended. The Civic Cultural Commission has stated that they will recognize the Port in their advertising and promotion.
Commissioner Garcia commented that since the Port contributes almost 50% of the cost of this event, he wants to see the Port logo be much larger on the promotional material and at the concert itself. Garcia inquired as to how to go about finding out how much money the other entities contributed. Cortez said he could find out, and also find out the cost to change the banner.
Commissioner Dodge mentioned that last year when Warren Dale was here we talked about changing it to “Summer Music brought to you by the Port of Redwood City. Cortez said he would address this issue with Parks & Recreation and Civic Cultural Commission. Commissioner Kastrop agreed the Port needs more prominence since we are the signature sponsor.
Cortez invited anyone from the Board to MC the concert for one evening. The MC would introduce themselves, the band, and talk about the Port for 5 minutes.
Commissioner Kastrop asked about the line up and Cortez said the band line up is still be negotiated for one or two bands. Kastrop asked for Cortez to send a tentative line up and expressed interest in being one of the MC’s .
Commissioner Dodge asked that a proof of the new flyer be sent to Mike Giari before it goes to print for the final time.
A Motion to Approve was made by Commissioner Kastrop. It was seconded by Commissioner Aikins. The motion was passed unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
V. MOTIONS
A. MOTION APPROVING SECOND AMENDMENT TO AGREEMENT (STANDARD AGREEMENT STD 213A) WITH THE DEPARTMENT OF BOATING & WATERWAYS (AGREEMENT NUMBER 05-101-310) FOR THE IMPROVEMENTS TO THE BOAT LAUNCHING FACILITIES.
Mike Giari explained that the contract for the boat launch renovation project was approved by the Board in August in 2008 and is being funded by a grant from California Department of Boating & Waterways (DBW) in the amount of a little over $1 million dollars. The contractor, Gordon N. Ball, Inc., was required to complete the project by January 2, 2009, however the project is not complete, and in the agreement with DBW the grant expires May 1, 2009. The Port sent a request to DBW for an extension of the completion date, which is in the amendment to the agreement, extending the date to May 1, 2010. There is only a small amount of work left to be done. The lights that were ordered and installed in the restrooms need to be replaced which will take 5 to 6 weeks. Due to the delay there are liquidated damages of $500/day. Final project approval, lien release and the amount of liquidated damages will be brought back to the Board at a later date. The Launch Ramp is completed and was open months ago for use. Don Snaman continues to monitor this job closely and will report on it at a future meeting. Giari said the DBW has been very good to work with on this project.
Commissioner Dodge asked to what date did the liquidated damages go back to. His concern is that when a project like this is dependent upon State funding, we should have in the contract that the date is “drop dead” and if the project is not completed by this date, the contractor does not get paid. Giari said the Port sent a notice to Gordon N. Ball, Inc. in March of 2009 informing them that, if due to the contractor’s fault, the Port was not able to receive reimbursement by DBW because of the May 1st deadline, they would be held responsible. Commissioner Dodge asked if we would then be in a legal position to enforce the fact that if we don’t get paid then they don’t get paid?
Sorba said that through the indemnification clause, whatever damages we have, we would pass along and the damages would be the lack of reimbursement.
A Motion to Approve was made by Commissioner Kastrop. It was seconded by Commissioner Garcia. The motion was passed by a unanimous roll call vote of all Commissioners present. Commissioner Claire was absent.
B. MOTION AUTHORIZING ISSUANCE OF LETTER PERMIT TO PENINSULA CELEBRAION ASSOCIATION IN CONNECTION WITH FIREWORKS DISPLAY – (4th OF JULY CELEBRATION YEAR 2009)
Mike Giari stated that the Peninsula Celebration Association, which sponsors the July 4th Fireworks at the Port, has done a good job of getting all the paperwork in early and for meeting with the Fire and Police Departments and the Port. The fireworks display and permit are very similar to last year. The fireworks will be set off from a barge at the Port, which will arrive the day of July 4th. The Fire Dept. will set up a security zone around the fireworks barge area. The Port’s boat will be on the water, along with the Sea Scouts and the Yacht Club to help in keeping area clear of any other boats. The Port will be responsible for portable toilets and additional Port Security Guards on duty at gate entrances to Port facilities. PCA will provide security at the viewing area for spectators around the Portside Office Complex.
Commissioner Kastrop expressed that due to parking issues, alternate methods of transportation should be arranged, like a bus or shuttle. Giari said the PCA has explored alternate transportation options, but funding is an issue. SamTrans is prohibited from providing shuttles for events. Kastrop suggested the new Redwood City Shuttle might be an option. Giari said we could look into the Shuttle sponsored by The City of RWC and the Peninsula Congestion Relief Alliance.
Commissioner Dodge inquired as to why no one is allowed on the public fishing pier during the fireworks since it is outside of the security zone. Giari explained that this is to avoid over crowding on the pier.
A Motion to Approve was made by Commissioner Aikins. It was seconded by Commissioner Garcia. The motion was passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
C. MOTION APPROVING VENUE AGREEMENT WITH WALT DISNEY STUDIOS MOTION PICTURES – (DISNEY’S A CHRISTMAS CAROL TRAIN TOUR)
D. MOTION APPROVING SPECIAL TRAIN AGREEMENT WITH NATIONAL RAILROAD PASSENGER CORPORATION – (AMTRAK)
The Port has been selected as the location for a special event called The Christmas Carol Train sponsored by Walt Disney Studios which will be held at the Port June 26th – June 28th. The purpose is to promote an upcoming Disney Movie titled A Christmas Carol which comes out in November of 2009. The event will be free to the public. Disney is interested in using the Port’s facilities because the event consists of four decorated passenger cars to show how the movie was made. In addition to an area where the train can be parked and be safe and accessible to the public, Disney also wants to put up a 50’ x 50’ inflatable tent for viewing a Digital 3D preview of the movie. There is space in the Marina Parking Lot for the tent. This will be the only venue for Disney to promote the movie with the special Disney train in the Bay Area. The two AMTRAK Engines will bring in the train. Disney will provide all the labor for set up and take down of event, the portable toilets, the trash receptacles and dumpsters, lighting for the event and security. In addition to Disney’s own publicity through their PR people, The Port is coordinating event publicity with the San Mateo County Convention & Visitor’s Bureau and the City of Redwood City. There will be a ribbon cutting event on the Friday that the exhibit opens, the press will be invited. In the agreement between the Port and Disney, compensation to the Port for the use of the Port’s facilities is the publicity the Port receives from this event. In the agreement between the Port and AMTRAk, compensation to the Port is $100.
Commissioner Aikins commented that the insurance requirements as stated in the contract are that we have to provide special coverage and it says that it must be maintained for three years following completion of the work. Does the Port need to get a special writer or modify our existing policies?
Cynthia Hampton said that we have contacted our insurance company and at this point we do not know yet if there is any additional costs for the writer.
Commissioner Kastrop congratulated the Port on the positive publicity this event will bring to the Port. Due to the fact that this event will most likely attract large crowds, she pointed out that in addition to Disney providing security, they should also provide crowd control. She also suggested that outside vendors coming to the Port to sell items to the crowds during the event be limited and that first priority be given to non profit organizations for these types of sales. She would also like to see a Port information table set up to increase the public’s awareness of the Port.
Commissioner Dodge asked to describe exactly where the tent and the railcars would be located.
Giari said the rail spur track that dead-ends at the end of Wharf 5 closest to the public access area is where the four decorated railroad cars will be set up. The tent will be set up in the Marina Parking Lot closest to the water. Disney’s people were here and they approved of the site and they would set up kiosks and other things to help direct people back and forth between the tent and the train cars. Disney said that to see the train cars, go through the exhibit and then see the movie is about a 50 minute process.
Commissioner Dodge asked how many people Disney expects to attend this event.
Giari has heard that they expect about 10,000 people over a three day event. We will contact Disney to get an update on what the response has been at other locations. The Port will focus on a plan for setting up parking along Chesapeake and possibly the Port’s Boat Launch area.
Commissioner Kastrop expressed concern that 10,000 people over a three day event may be underestimated. She asked how will the Portside Tenants be protected and how will access to the marina by the Marina tenants be controlled over the weekend.
Giari explained that parking will be reserved on Friday for the Portside office complex and will also reserve any parking for Portside tenants that need it over the weekend. The Marina will be notified, but the Sequoia Yacht Club members who are here on the weekends seem to enjoy the crowds and events and we have never had to reserve parking for them for the 4th of July. We will address any concerns with them.
Commissioner Aikins reminded that we need to compare Disney’s previous stops with a weekend attendance with school out.
Items V-C and V-D were discussed and handled as one item. A Motion to Adopt was made by Commissioner Kastrop. It was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
VI. REPORT/PRESENTATION:
By Michael Giari, Executive Director
A. QUARTERLY VESSEL & TONNAGE REPORT (January 1, 2009 – March 31, 2009)
The total tonnage for the 3rd quarter was 133,000 MT, with only 5 ships during the quarter. Compared to the 3rd quarter in 2008, we had over 400,000 MT and the number of ships was 13. The drop was surprising for the 3rd quarter. The cement shipments have not been coming for over a year, but in addition to that the gypsum shipments were stopped in October 2008 because of the wallboard plant going into renovations. There were not any limestone shipments because the Davenport Cement Plant which was using the limestone is closed. It seems that all these came into effect in the 3rd quarter and that is why we saw this drop in maritime traffic.
Commissioner Kastrop asked that when talking with the Port tenants and the Seaport Industrial Association is there any sense that the Recovery Act Stimulus Plans are going to increase construction and bring in tonnage. Giari said that there is some expectation that the Economic Stimulus Funds that are going to infrastructure projects will start to kick in the 3rd quarter of 2009 calendar year. We are hoping that this decrease is at the bottom and that it will start to pick up this Summer and Fall. For the next fiscal year we are probably looking at a mid 800,000MT for the entire next year.
VII. PUBLIC COMMENT:
None
VIII. MATTERS OF BOARD INTEREST
Commissioner Kastrop informed the Board that she sent a letter to State Senator Joe Simitian regarding Governor Schwarzenegger’s proposal to disband the Department of Boating and Waterways (DBW) and put all of its responsibilities and funding in the CA Department of State Parks. The funding for DBW comes from fuel taxes and boat registrations paid by boaters. Organizations representing recreational boaters are opposed to this proposal.
Kastrop said that she wrote a personal letter, identifying herself as a Port Commissioner, explaining the benefits received by boaters from DBW and the loans and grants used by the Port to provide facilities for recreational boaters in our community. She added that the Port may want to consider taking a position on this issue and she will continue to follow it and inform the Board.
Giari added that as a result of copies of emails he received between Bob Hoffman of the Sequoia Yacht Club and the City, he sent a copy of Kastrop’s letter to the Mayor, City Manager, and Mr. Hoffman informing them that the Port will be monitoring this issue.
Commissioner Aikins asked if port organizations in California have taken a position on this. Giari said that CMANC has been active in opposing transferring DBW’s programs and funding to the State Parks Department.
Commissioner Garcia questioned the procedures for a Commissioner writing a letter which includes being identified as a Port Commissioner. Even though this letter did not go out on Port letterhead, he asked how this would affect the Port.
Commissioner Dodge explained that for issues involving the Port Commission, all communications go through the Chairman. In this way, the Port is speaking with one voice especially in matters that involve Port policy and in communications with the press and elected officials. Francois Sorba added that a Commissioner has the right to mention that he or she is a Port Commissioner. However, he would have to see the letter in order to determine whether or not the author was speaking on behalf of the Port Commission.
Commissioner Kastrop said that the letter is clearly written as expressing her individual point of view and that it included facts about DBW funded projects that benefited the Port and referenced that she is a Port Commissioner. There was some urgency in getting the letter out before a hearing by the State Legislature on this matter. Kastrop said she understands the Commissioners’ concerns and their point is well taken.
IX. EXECUTIVE DIRECTOR'S REPORT
Mike Giari reminded the Board that there will be a meeting on Thursday, May 14th of the Water Emergency Transit Authority (WETA) in Redwood city to talk about their plans for ferry service in San Mateo County and to review the Draft Emergency Marine Transportation Plan. The Port has submitted comments on the plan and WETA asked the Port to attend the meeting to present their comments. The meeting will be held at the Redwood Shores Library at 7:00PM.
X. CLOSED SESSION
At 9:25am the Board Convened to Closed Session to discuss conference with Legal Counsel – Anticipated Litigation under Government Code Section 54956.9(c)
At 10:03 the Board reconvened wherein Chairman Dodge read the following statement, “The direction to initiate legal action has been given to Legal Counsel. The actions, the defendants and other particulars shall, once formerly commenced, be disclosed to any person upon inquiry, unless to do so, would jeopardize the agency’s ability to effectuate service or process on one or more unserved parties, or do so, would jeopardize it’s ability to conclude existing settlement negotiations to it’s advantage”.
XI. ADJOURNMENT
At 10:05a.m. Chairman Dodge requested that the Commission adjourn to its next regularly scheduled Meeting of May 27, 2009. A Motion to Adjourn was made by Commissioner Garcia and it was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
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