BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – June 24, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Vice Chairman Garcia, presiding
Commissioners Present: Commissioner Lorianna Kastrop; Commissioner Larry R. Aikins; Secretary; Richard S. Claire; and, Vice Chairman, Ralph A. Garcia, Jr.
Commissioners Absent: Chairman 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 May 27, 2009 was made by Commissioner Claire and was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of Commissioners present at the May 27th meeting. Commissioner Aikins abstained. Commissioner Dodge was absent.
A Motion to Approve Minutes of Regular Meeting of June 10, 2009 was made by Commissioner Kastrop and was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of Commissioner present at the June 10th meeting. Commissioner Claire abstained. Commissioner Dodge was absent.
III. CLAIMS
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. ORDINANCE
A. ORDINANCE APPROPRIATING ANTICIPATED REVENUES AND OTHER GENERAL FUNDS OF THE PORT OF REDWOOD CITY FOR THE FISCAL YEAR JULY 1, 2009-JUNE 30, 2010 – 2ND READING – OPEN/CLOSE PUBLIC HEARING
Vice Chairman Garcia opened the Public Hearing. No comments were made.
A Motion to Close the Public Hearing 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.
A Motion to Adopt the Ordinance and Waive the Reading Thereof was made by Commissioner Aikins and it was seconded by Commissioner Kastrop. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Dodge was absent.
V. RESOLUTIONS
A. RESOLUTION APPROVING STANDARD SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (BRIAN BOYER)
B. RESOLUTION APPROVING FIRST AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (SMART THREADS, INC.)
C. RESOLUTION APPROVING FOURTH AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (FAT BOX, INC.)
Executive Director Giari commented that Fat Box, Inc. has been in business for a number of years as a television and video production company. They have been a long term tenant located in a number of buildings at the Portside I office complex.
Resolutions V-A, V-B, and V-C were discussed and voted on as one item. A Motion to Approve 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
D. RESOLUTION TERMINATING REIMBURSEMENT AGREEMENT IN CONNECTION WITH 475 SEAPORT BOULEVARD – (RENEWABLE ENERGY PRODUCTS, LLC)
Executive Director Giari explained that this item is to terminate the reimbursement agreement between the Port and Renewable Energy Products (REP). The agreement was for REP to reimburse the Port for expenses related to conducting a CEQA review for a proposed lease by REP of 4.4 acres at the 475 Seaport Boulevard site for a biodiesel production facility. The reimbursement agreement between the Port and REP obligated REP to deposit funds with the Port for payment of consultant’s fees and the Port’s 10% administrative fee. In June 2008 the Port received REP’s deposit in the amount of $60,536.50.
In January 2009 the draft Initial Study was completed and REP was asked to provide comments and additional information. REP did not provide comments and several REP employees that were working with Port staff left the company in December and January. Repeated attempts were made to contact REP by telephone, e-mail, and letter but there was no response from REP. Therefore, Port staff instructed the study consultant, TEC, Inc., to discontinue the CEQA Study and notified REP of this action. An accounting was made of what had been spent on the CEQA Study to date. The total amount charged against the deposit that we received from REP was $27,535.00 in consultant fees and $2,753.51 was charged against the deposit in payment of the Port’s administrative fee. If this resolution is approved by the Port Commission, the remaining balance of the deposit, $30,247.99, would be returned to REP.
Commissioner Kastrop inquired if there were any findings from the Initial Study that would be of interest to the Port. Giari replied that the Initial Study reviews environmental factors and makes a determination as to whether or not a mitigated negative declaration or an EIR should be conducted. The study indicated that there were some significant impacts in terms of traffic that would have required an EIR to be completed.
Commissioner Aikins asked the Port Attorney if evidence is necessary that attempts were made to contact REP. Attorney Sorba responded that there is evidence in the form of a letter and previous emails. Giari explained that staff sent a certified, return receipt requested letter to REP notifying them that the Port had stopped work on the Study.
A Motion to Approve was made by Commissioner Claire. It was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
RESOLUTION
E. RESOLUTION SUPPORTING RETENTION OF THE CALIFORNIA DEPARTMENT OF BOATING & WATERWAYS AS ITS OWN ENTITY
Executive Director Giari stated that in the Governor’s May State Budget revisions there is a proposal to eliminate the Department of Boating & Waterways (DBW) as a separate agency and incorporate its functions into the California State Parks & Recreation Department (State Parks). This would give the State Parks control of the State Harbors & Watercraft Revolving Fund, which the DBW currently manages. The DBW uses the Revolving Fund to make improvements to boating facilities around the state of California, provide access for recreational boaters to various waterways, and also, conduct programs involving boating safety.
There are many organizations that are opposed to dissolving the DBW and incorporating it into State Parks. This resolution supports the retention of DBW as its own entity in State government. If the resolution is approved by the Port Commission, copies of the resolution would be sent to the State Legislature Budget Conference Committee, the Governor’s office, and State Senator Simitian and Assemblyman Ruskin.
Commissioner Kastrop commented that the Port has benefited from DBW’s loans and grants in the past and would continue to do so in the future if the DBW is retained as an entity. If the State Harbors & Watercraft Revolving Fund, currently managed by DBW, goes into a fund controlled by State Parks, the funds may not be available specifically for recreational boaters. Kastrop said that since the revolving fund was generated by taxes paid by boaters, it is important that the funds be retained for the benefit of boaters. Kastrop gave the Commissioners a list of the groups and organizations that have decided to publicly oppose dissolving DBW.
A Motion to Approve this Resolution was made by Commissioner Kastrop with the stipulation that following adoption, the resolution would also be sent to Senate President pro Tempore Darrell Steinberg, Senate Republican Leader Dennis Hollingsworth, Assembly Speaker Karen Bass, and, Assembly Minority Floor Leader Sam Blakeslee. It was seconded by Commissioner Claire. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Dodge was absent.
VI. PUBLIC COMMENT:
None
VII. MATTERS OF BOARD INTEREST:
Commissioner Claire asked Giari about the status on a proposal to eliminate the Bay Conservation and Development Commission (BCDC). Giari responded that as President of the Bay Planning Coalition, they have been following this proposal very closely. With the Governor’s May revision of the State Budget, one proposal was to reorganize BCDC into a self-supporting, regional agency. Currently, BCDC is one of the smallest agencies in the State Government and receives about $4.5 million annually out of the State’s General Fund. The latest compromise, although it has not been finalized, is that BCDC would continue to be funded by the State for another year. During that year, BCDC would prepare an assessment of its responsibilities and functions to be reorganized into a regional agency. The Bay Planning Coalition is supporting that and will be actively involved in developing alternatives for a regional agency.
Commissioner Kastrop commented that the cancellation of the Disney train tour was a big disappointment and asked for an update on Union Pacific’s work on the railway tracks. She also asked whether or not there were any consequences with Disney or the public from the cancellation.
Giari responded that staff has been in communication with Union Pacific regarding the maintenance work on the track. Union Pacific, at this time, does not know when they will resume work on the railway tracks along Seaport Boulevard due to the asbestos contamination. Giari explained that contract documents for the Frontage Road Track Crossing Pavement Improvement Project, which were on the June 10th Port Commission agenda, were scheduled to be on the agenda of today’s meeting with minor corrections. However, since it is evident that with Union Pacific’s work stoppage, the work on the Port’s crossings will be delayed.
As far as impacts to the Port, although there was disappointment in the cancellation of the Disney Train Tour, it does not impact the Port in terms of revenue or expense because Disney would have covered all expenses and the Port was not going to receive any revenue. Notification of the location has been posted on the City’s and Port’s websites and flyers have been distributed.
Commissioner Kastrop commented that the Music in the Park concerts, sponsored by the Port, starts tonight at Stafford Park. Kastrop said she will try to attend some of these Wednesday night events because she thinks it behooves the Port to have a good presence at those concerts.
Commissioner Garcia asked about material other than wood waste in piles at the SRDC recycling facility and for an update on the status of this operation. Giari explained the permits for the SRDC recycling facility cover two waste streams, wood waste and construction and demolition (C&D) material. Activity at this recycling facility has increased and SRDC has expressed an interest in a long term lease. Under a long term lease, SRDC is proposing to make improvements to the facility including a building to enclose much of the recycling equipment, paving, wind screens, and landscaping. The Port will be reviewing proposals from environmental consulting firms to conduct a CEQA review of the proposed project and the Port Commission will be asked to consider a reimbursement agreement with SRDC for the Port to conduct environmental studies.
Commissioner Garcia said that only commercial users can bring material into the SRDC recycling facility at this time and he would like any long term lease to include public use of the facility. Giari agreed to discuss this with SRDC.
Commissioner Aikins inquired about the length of term of a proposed lease with SRDC. Giari replied that SRDC has asked for a 10-year term with an option to renew for an additional 5-years.
Commissioner Garcia asked if there had been any complaints from tenants of the office complexes regarding dust or noise from the operation. Giari explained that there had recently been a few complaints from the Portside II offices about noise and that since SRDC has taken steps to mitigate the noise, there have been no other complaints. Garcia suggested that a provision be added to the office leases stating that they are in an industrial area. Attorney Sorba explained that the Portside leases do not have notification language about industrial use because they are old lease agreements; but, newer leases do have this type of provision. Sorba said the Port could ask the Portside tenants to include notification provisions in their sub-leases.
VIII. EXECUTIVE DIRECTOR'S REPORT:
Executive Director Giari reported that the 4th of July fireworks are scheduled to be held at the Port. The City Parks & Recreation Department and the City Cultural Commission has also scheduled a band to be here prior to the fireworks display. Giari stated that entrances to the Port are closed between 6:00 PM and 10:00 PM in order to prohibit spectators from trying to park in the industrial areas. Additional information on 4th of July activities can be viewed on the Port’s website at www.redwoodcityport.com and www.parade.org.
IX. ADJOURNMENT
At 8:40 a.m. Vice Chairman Garcia requested that the Commission adjourn to its next regularly scheduled Meeting of July 8, 2008. A Motion to Adjourn 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.
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