BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – July 22, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Dodge, presiding
Commissioners Present: Commissioner Lorianna Kastrop; Commissioner Larry R. Aikins; Secretary; Richard S. Claire; Vice Chairman, Ralph A. Garcia, Jr.; and, Chairman, Richard A. Dodge
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 Operations, Donald K. Snaman; Accounting Clerk, Linda Hawkins; Executive Assistant, Rita F. Artist; and, Administrative Assistant Margaret Astesano
Commissioner Garcia led the Pledge of Allegiance.
II. APPROVAL OF MINUTES:
A Motion to Approve Minutes of Regular Meeting of July 8, 2009 was made by Commissioner Kastrop and Seconded by Commissioner Claire. The motion passed by a unanimous voice vote of the Commissioners present at the July 8 meeting. Commissioner Aikins abstained.
III. CLAIMS:
Commissioner Aikins inquired about payment made to PLS Surveys, Inc. Ms. Hampton explained that it was for a hydrographic survey for Wharves 1, 2, 3, & 4 dredging.
Chairman Dodge inquired about payment made to CEMEX, Inc. Giari explained that a drainage system located between CEMEX and Port properties experienced problems with flapper gates. As a result of extremely high tides in February, flooding occurred on CEMEX property resulting in damage to electric motors located in a sub-basement on their property. The flapper gates were identified as being partially responsible for the flooding and the Port agreed to pay for one-half of the damage to CEMEX’s electric motors. BKF Engineering is working for the Port to find a different kind of flapper gate to alleviate the problem.
Chairman Dodge also asked about an insurance broker fee paid to AON Risk Insurance Services. Ms. Hampton explained that in lieu of paying a commission on each of the Port policies, Staff negotiated a flat broker fee, which saved the Port approximately $14,000 this year.
Commissioner Garcia commented on payment made to Neopost Leasing and suggested that staff research other ways to obtain postage. Ms. Hampton explained that the payment was for rental of a Neopost postage meter and scale only. Postage is purchased separately from the U.S. Postal Service.
A Motion to Approve Claims was made by Commissioner Claire and it was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners.
At this time, Executive Director Giari requested that Item V-A, a resolution approving the Initial Study and Notice of Intent to Adopt a Negative Declaration, be discussed and acted upon by the Commission prior to discussion and action on Item IV-A.
Chairman Dodge moved to Item V-A at this time as requested and then returned to Item IV-A, Ordinance…approving and authorizing execution of lease agreement…Potter Drilling, Inc. – Introduction.
IV. ORDINANCE
A. ORDINANCE OF THE BOARD OF PORT COMMISSIONERS OF THE CITY OF REDWOOD CITY APPROVING AND AUTHORIZING EXECUTION OF LEASE AGREEMENT WITH POTTER DRILLING, INC. - INTRODUCTION
As a follow up to discussion in Item V-A, Chairman Dodge asked if Potter Drilling’s equipment was sensitive to dust since the location of the facility is in the vicinity of gypsum and bauxite storage piles. Jared Potter, President of Potter Drilling, Inc., said they did not anticipate that to be an issue. They are currently located across from Lyngso Building Materials and have had no problems with dust.
Dodge expressed concern about liabilities that may arise if this lease does not specifically require environmental pollution insurance. Giari explained that a Closure Report was completed by U.S.G.S. upon vacating the facility reporting that the site was clean. The proposed use of the site and the small amount of hazardous materials to be used on the site does not require full pollution liability coverage. The hazardous materials will be stored in 55-gallon drums within a containment area inside the building on a concrete slab. However, based on full pollution liability insurance being required in most Port leases, Port staff will discuss with Potter Drilling the feasibility of requiring this coverage.
Commissioner Claire commented that in this case, the quantity of hazardous materials is very small. Claire’s concern is that the insurance policy will cover spills from hazardous materials that are under permit and meet the requirements of the Redwood City Fire Department.
Commissioner Kastrop asked if Potter Drilling planned to manufacture equipment in the future. Jared Potter, President & CEO of Potter Drilling, explained that their goal was not to manufacture but to assemble the equipment for leasing.
A Motion to Introduce the Ordinance and Waive the Reading Thereof was made by Commissioner Garcia. The motion was seconded by Commissioner Aikins. The motion passed by a unanimous roll call vote of all Commissioners.
Chairman Dodge continued on to Item V-B.
V. RESOLUTION
A. RESOLUTION ACKNOWLEDGING CONSIDERATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT OF THE PROPOSED NEGATIVE DECLARATION AND INITIAL STUDY FOR THE POTTER DRILLING, INC. PROJECT LOCATED AT THE PORT OF REDWOOD CITY, CITY OF REDWOOD CITY, IN THE COUNTY OF SAN MATEO; APPROVING THE INITIAL STUDY AND THE NOTICE OF INTENT TO ADOPT A NEGATIVE DECLARATION; AUTHORIZING AND DIRECTING CIRCULATION AND DISTRIBUTION OF THE NOTICE OF INTENT AND RELATED DOCUMENTS FOR SAID PROJECT; AND APPROVING THE PAYMENTS OF EXPENDITURES, FEES AND COSTS RELATED TO THE CIRCULATION AND DISTRIBUTION THEREOF
Executive Director Giari explained that Potter Drilling, Inc. is proposing to lease an existing building located at 599 Seaport Boulevard. Potter will use the building for research and development of new drilling technologies to enable clean energy production from geothermal resources. No drilling will be conducted on the premises.
As lead agency under the California Environmental Quality Act (CEQA), the Port prepared an Initial Study and environmental checklist. The proposed project was determined to have no impact or a less than significant impact on the environment factors that were evaluated. As a result, a draft Negative Declaration for the Potter Drilling project is recommended for circulation by the Port Commission.
Mark Hankowski, Vice President of Business Development, Potter Drilling, Inc., presented a brief history of the company and its founder, Robert Potter; its mission to develop an innovative drilling technology (hydrothermal spallation) that will enable widespread use of Engineered Geothermal Systems (EGS) to produce electricity at costs less than coal; discussion of geothermal power; and federal funding that they have applied for under American Recovery and Reinvestment Act.
Click here to view the presentation for this item
Commissioner Garcia inquired about small amounts of hazardous materials that would be stored at the facility. Hankowski responded that 100 pounds each of hydrogen peroxide and methanol will be stored in 55 gallon drums within a containment area that has curbing, epoxy floor, and sprinkler system. Commissioner Kastrop questioned how often the 55-gallon drums would be used and replaced. Hankowski estimated it would be on a monthly basis and explained that Potter has a hazardous material storage facility in Hayward.
Jared Potter, President of Potter Drilling, Inc., explained that the hazardous materials are used in a temporary testing procedure for their technology development. Potter’s goal is to move to technologies that are electrically based, eliminating all hazardous waste after the first year or so.
Commissioner Aikins asked if Potter Drilling’s source of income would be from the sale of drilling equipment. Hankowski replied that the specialized technology would not be sold but drilling equipment would be leased to drillers on a daily rate. Aikins asked if Potter had any other sources of income. Hankowski responded that Potter Drilling is a venture backed, start up company with Google as their first financial backer. Potter is actively seeking a second round of venture funding.
Commissioner Kastrop asked how many employees would be at the Potter facility and Hankowski replied that they currently have 11 employees. Kastrop next inquired about their use of delivery vehicles. Hankowski explained that heavy equipment would not be brought in on a frequent basis. Approximately 2-3 field trials per year would necessitate a large towing vehicle to transport Potter’s drilling rig to an off-site location. The drilling rig will be stored at the Port facility.
A Motion to Adopt was made by Commissioner Aikins. It was seconded by Commissioner Claire. The motion passed by a unanimous roll call vote of all Commissioners.
At this time, Chairman Dodge returned to Item IV-A, Ordinance…approving and authorizing execution of lease agreement…Potter Drilling, Inc. – Introduction.
RESOLUTION
B. RESOLUTION APPROVING SEVENTH AMENDMENT TO SUBLEASE AGREEMENT (PORTSIDE INVESTORS – PHASE I LEASE AGREEMENT) – (SEAPORT VENTURE, L.P.)
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.
RESOLUTION
C. RESOLUTION APPROVING CONTRACT DOCUMENTS FOR THE FRONTAGE ROAD TRACK CROSSING PAVEMENT IMPROVEMENT PROJECT AND AUTHORIZING AND DIRECTING ADVERTISEMENT FOR BIDS THEREFOR
Executive Director Giari stated that Union Pacific (UP) is undertaking a $2,000,000 track infrastructure improvement project for the main rail spur along Seaport Boulevard and Frontage Road. In April 2009, the Port entered into a Private Road Crossing Master Agreement with UP allowing the Port to have four private road crossings to Port tenant properties. In addition, there are four public street crossings which access Port’s property. UP’s improvements only relate to the tracks and concrete panel crossings. The Port will be responsible for the transition asphalt paving from the concrete panel crossings out to the edge of Seaport Boulevard or Frontage Road and from the concrete panel crossings in towards Port properties.
The Port retained BKF Engineers to prepare the contract documents, plans and specifications for this public works contract. A pre-bid meeting is scheduled on August 4, 2009. The bid opening will be on August 19, 2009. The selected contractor will have 60 days to complete the project. Port staff is recommending approval of the contract documents and advertising for public bids for this project.
Commissioner Kastrop asked if changes to the specifications would trigger costly change orders after the contract was awarded. Don Snaman, Manager of Operations, responded that staff walked the crossings with UP, took the measurements for the length of the crossings, and have assumed the maximum amount for the paving project. Snaman does not anticipate change orders, outside of per unit volume based cost items, that would increase the contract cost.
Commissioner Kastrop asked for clarification on notice provisions to the contractor. Snaman said that would be covered in the pre-bid meeting and that the contractor will be somewhat “on call” since we will have to schedule their work with UP.
A Motion to Adopt was made by Commissioner Claire. It was seconded by Commissioner Garcia. The motion passed by a unanimous roll call vote of all Commissioners.
VI. ELECTION OF OFFICERS
Commissioner Garcia moved to elect Lorianna Kastrop as Secretary. Commissioner Claire seconded the motion and it was passed by a unanimous voice vote of all Commissioners.
Commissioner Garcia moved to elect Dick Claire as Vice Chairman. Commissioner Aikins seconded the motion and it was passed by a unanimous voice vote of all Commissioners.
Commissioner Claire made a motion to elect Ralph Garcia as Chairman. Commissioner Kastrop seconded the motion and it was passed by a unanimous voice vote of all Commissioners.
At this time, outgoing Chairman Dodge handed the gavel over to Chairman Garcia.
Commissioner Kastrop thanked outgoing Chairman Dodge for his service over the past years, commenting that it has been very helpful and educational for her.
VII. PUBLIC COMMENT:
Mike Marzano, representing both the Sea Scouts and the Mariner Girl Scouts, thanked the Port for allowing them to hold an introductory event to Sea and Mariner Scouting at the Port this past weekend. Approximately 400 Cub Scouts and parents received an introduction to Sea Scouting by cruising the South Bay on Sea Scout boats to and from the Port of Redwood City.
Marzano also commented on a sailing event that Stanford and Sequoia Yacht Club are sponsoring this weekend. There will be Sea Scout sailing teams from all throughout California coming here to compete.
VIII. MATTERS OF BOARD INTEREST:
Chairman Garcia reminded everyone that tonight is the weekly concert of the Port sponsored Music in the Park Series at Stafford Park. Garcia said the previous concerts have been a great success and encouraged all to attend.
IX. EXECUTIVE DIRECTOR'S REPORT:
Executive Director Giari reported on a letter received from Congresswoman Eshoo updating us on the progress of the Port of Redwood City Maintenance Dredging Funds that are included in the U.S. Army Corps of Engineers appropriations for FY10. $6,745,000 was included in the House bill. There are still several more legislative steps to complete, which Eshoo outlined in her letter. The Port greatly appreciates the efforts of Congresswoman Eshoo on behalf of the Port of Redwood City.
Giari also commented that Congresswoman Eshoo and Senator Feinstein will be asked by the Port to include report language in the final authorization bill which would allow the Corps of Engineers to use some of the channel maintenance dredging funds for the containment of dredged material on Bair Island.
Giari next reported that the National Senior Games Triathlon will be held at the Port on Sunday, August 2. Stanford University is hosting the National Senior Games Association events scheduled for August 1-5 at Stanford University and other nearby venues. Information is available at www.2009seniorgames.org.
X. ADJOURNMENT:
At 9:06 a.m. Chairman Garcia requested that the Commission adjourn to its next regularly scheduled Meeting of August 12, 2009.
A Motion to Adjourn was made by Commissioner Dodge and it was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners.
City of Redwood City | Tide Chart | Contact Us |