BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – August 26, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Garcia, presiding
Commissioners Present: Commissioner Richard A. Dodge; Commissioner Larry R. Aikins; Secretary Lorianna Kastrop; and, Chairman Ralph A. Garcia, Jr.
Commissioners Absent: Vice Chairman Richard S. Claire
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; Administrative Assistant, Margaret Astesano; and, Executive Assistant, Rita F. Artist
Commissioner Dodge led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of July 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.
Commissioner Kastrop commented that today’s agenda does not follow the usual order of procedure in that the resolutions precede the ordinance. The documents in the Commissioners’ packets are organized with the ordinance before the resolutions. She asked if the Board should follow the agenda. Executive Director Giari explained the reason for the change and suggested following the order of the agenda.
III. CLAIMS
A Motion to Approve Claims was made by Commissioner Kastrop and it was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
IV. RESOLUTION
A. RESOLUTION ACCEPTING BID FOR THE FRONTAGE ROAD TRACK CROSSING PAVING IMPROVEMENT PROJECT AT THE PORT OF REDWOOD CITY; AUTHORIZING EXECUTION OF AGREEMENT FOR SAID WORK AND DIRECTING RETURN OF SECURITY DEPOSITS – (TOP GRADE CONSTRUCTION, INC.)
Click here to view the Staff Agenda Sheet for this item
Executive Director Giari commented that in July 2009 the Board approved contract documents for the Frontage Road Track Crossing Pavement Improvement Project. Union Pacific is working on a major maintenance of tracks from the Highway 101 overpass to the end of Seaport Boulevard. UP finished the crossing at Chesapeake Drive last weekend and next will begin work on the eight UP Railroad track crossings at the Port. UP will install new concrete panel road crossings but will not do any asphalt concrete paving. This resolution is to accept the bid and authorize execution of an agreement for paving of each crossing.
Don Snaman, Manager of Operations, presented the staff report on this item explaining that bids were received from nine contractors, including one from the low bid contractor, Top Grade Construction, Inc. of Foster City, CA for $84,770.00. One contractor withdrew his bid due to a clerical error on their proposal form. The Port’s engineer, BKF Engineers, recommends the Port award the contract to Top Grade Construction, Inc. Port staff has reviewed the status of the contractor’s license and bid bond and found all to be in good order. We expect the project to be completed by October 31, 2009.
Commissioner Dodge questioned the justification for allowing the contractor to withdraw his bid. Snaman explained that the Public Works Code allows for the withdrawal of bids for specified reasons, a clerical error being one. The Code requires the bidder to submit a letter requesting that their bid be withdrawn. The Port can evaluate the request and has the option to accept or not.
Commissioner Aikins asked if the Port has ever had a contract with Top Grade Construction, Inc.; and, Snaman replied, “No”. The Port received a list of Top Grade’s recent contracts, among which is an extensive list of public agency jobs in the Bay Area within the past few years.
A Motion to Adopt was made by Commissioner Dodge. It was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
RESOLUTION
B. RESOLUTION ACCEPTING GRANT FROM THE DEPARTMENT OF HOMELAND SECURITY FEMA-GRANT PROGRAMS DIRECTORATE IN CONNECTION WITH THE FUNDING UNDER THE FY09 PORT SECURITY GRANT PROGRAM AND AUTHORIZING EXECUTION OF DOCUMENTS
Eric Napralla, Assistant Manager of Operations, presented the staff report on this item explaining that in January 2009 the Port submitted a grant application to the U.S. Department of Homeland Security FEMA-Grant Programs Directorate with a total project amount of $795,160, of which the Port would match $198,790. The projects included 1) Landside/Waterside Tactical Survey; 2) Maritime Domain Awareness…; and, 3) USCG and MARAD Approved Training…
On July 24, 2009, the Federal Department of Homeland Security awarded the Port $176,903. Project 2, Maritime Domain Awareness, was partially funded and Project 3, Training/Drills/Exercises, was fully funded. Project 1 and components of Project 2 were not approved for funding. As a public agency, the Port is required to provide 25% matching funds of the total project cost. Total Project Cost: $235,870; Port Match: $58,968.
Commissioner Dodge referred to Project 2, No. 4 (Procurement/Installation of concrete barricades along the fenced perimeter of the PG&E substation within the Port) and asked if PG&E is paying any of the project cost. Napralla replied, “No” that there is already fencing and barbed wire around the substation but since the Port is reliant on that source of energy for operations, our project is to further enhance the security by installing these barricades. Dodge recommended that staff contact PG&E to ask if they will share in the cost and Napralla commented that he would do so.
Commissioner Kastrop inquired about the remainder of the security projects that were not funded under this particular grant. Napralla explained that the projects not funded in this grant application were resubmitted under another federal security grant program.
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 Claire was absent.
RESOLUTION
C. RESOLUTION ACCEPTING THE BOAT LAUNCHING FACILITY PROJECT AT THE PORT OF REDWOOD CITY AND AUTHORIZING RELEASE OF PAYMENT AND PERFORMANCE BONDS ACCORDING TO THE TERMS OF THE CONTRACT – (REF: GORDON N. BALL, INC.)
Click here to view the Staff Agenda Sheet for this item
Executive Director Giari presented the staff report explaining that in August 2008 the Port Commission approved the construction contract agreement with Gordon N. Ball, Inc. for the Boat Launching Facility Project at a cost of $788,788. A grant from the California Department of Boating and Waterways (DBW) was awarded to the Port for the cost of the project. The project is completed and has been brought before the Port Commission for acceptance, authorization for final payment after deducting any liquidated damages, and release of payment and performance bonds.
Giari commented that Don Snaman, as the project manager for the Boat Launching Facility Project, put many hours into this long and detailed project.
Commissioner Kastrop asked if staff had considered having a public opening or ribbon cutting for this project saying that we should make a point of informing the public of what the Port is doing for recreational boaters’ access to the water. She suggested interviewing people who use the boat launch ramp for the Currents newsletter to learn how the improvements have helped them. Giari agreed that a public opening of the boat launch ramp with public officials and Department of Boating & Waterways representatives would be a good way to inform the public of these improvements. Kastrop volunteered to spearhead the event and involve the boaters who use the boat launch ramp.
Commissioner Dodge asked for an estimated cost of the liquated damages and whether or not the cost for liquated damages was spelled out in the contract. Giari answered that the contract calls for liquated damages for delay in completion of the project in the amount of $500 per day but discussions are taking place to determine the extent of any delay. Attorney Sorba commented that there are two issues regarding liquated damages - determining when it starts and also the cause for the delay. Sorba has been in contact with Gordon Ball’s attorney and expects a resolution of this matter, which will be brought before the Board at a future date. Final payment will not be released until that issue is resolved.
A Motion to Adopt was made by Commissioner Kastrop. It was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
RESOLUTION
D. 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; MAKING CERTAIN FINDINGS PERTAINING TO A CERTAIN PROJECT IN CONNECTION THEREWITH; APPROVING THE NEGATIVE DECLARATION RELATING TO ENVIRONMENTAL IMPACTS FOR SAID PROJECT; APPROVING THE PROJECT; AND AUTHORIZING THE FILING OF A NOTICE OF DETERMINATION AND THE PAYMENT OF EXPENDITURES, FEES AND COSTS RELATED THERETO
Executive Director Giari explained that this item is regarding the CEQA evaluation that the Port, as lead agency, prepared for the proposed lease agreement with Potter Drilling, Inc. at the former U.S.G.S. building. (See the following Ordinance.) Potter proposes to 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. The proposed use is very similar to the previous use of the building and the proposed project was determined to have no impact or a less than significant impact on the environmental factors that were evaluated.
On July 22, 2009, the Board approved the Initial Study and the Notice of Intent (NOI) to adopt a Negative Declaration for the Potter project. On July 30, 2009 the NOI was recorded with the San Mateo County Recorder’s Office, mailed to adjacent Port tenants, available for review at the Redwood City Main Public Library, and posted at the premises and the Port offices. The NOI directed comments be submitted to the Port by August 19, 2009. No comments were received from the public.
The next step in the CEQA process is for the Board to adopt a Notice of Determination (NOD). Port staff recommends approval of the resolution to adopt the NOD and to direct staff to file the NOD within the appropriate time periods.
Commissioner Dodge inquired about the cost of the CEQA review and Giari explained that since it was done by Port staff, the costs would be limited to a $50 filing fee with the County Recorder.
A Motion to Adopt was made by Commissioner Dodge. It was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
V. 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. – 2nd READING – PUBLIC HEARING
Chairman Garcia opened the Public Hearing. No comments were made from the public. A Motion to Close the Public Hearing was made by Commissioner Aikins. It was seconded by Commissioner Kastrop. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
Executive Director Giari commented that the only change, other than minor corrections and clarifications, that has been made to the lease agreement since its introduction on July 22 is shown in red on page 23. Language was added to the provisions regarding damage and destruction of the building to provide that if substantial use of the building is lost for a period of 120 days, Potter will have the option to terminate the lease. Exhibits B and C were revised to more accurately reflect the details of the lease premises and the location of the Port’s storage area. The Notice of Public Hearing and the Ordinance were published in the Redwood City Tribune on August 9, 2009.
A Motion to Adopt the Ordinance and Waive the Reading Thereof was made by Commissioner Kastrop. It was seconded by Commissioner Aikins. The motion passed by a unanimous roll call vote of all Commissioners present. Commissioner Claire was absent.
VI. PUBLIC COMMENT
None
VII. MATTERS OF BOARD INTEREST:
Commissioner Kastrop commented that she attended the Association of Pacific Ports Annual Conference (APP) recently held in Keelung, Taiwan. She found the meetings to be extremely educational and useful in that she has not had much exposure to Pacific Ports outside of the U.S. Kastrop found the Asian member ports’ interests to be very similar to ours, saying that they were very attentive to our input on matters of port interest. The Keelung Harbor Bureau were extremely good hosts and Kastrop thanked and congratulated the APP on this annual conference.
Chairman Garcia commented that the Port sponsored Music in the Park Series at Stafford Park has ended for this year. This wasn’t a banner year for the Optimists’ Club’s vendor booth, of which Garcia is a working member, but, it was a successful year. The Optimists’ Club plans to expand their menu next year and Garcia encouraged everyone to plan to attend the Music in the Park Series next year and visit their vendor booth.
VIII. EXECUTIVE DIRECTOR'S REPORT:
Executive Director Giari followed up on Commissioner Kastrop’s report on the APP Annual Conference in Keelung stating that the conference focused on many topics about ports and the port industry. Port security processes, procedures and structures at the medium-sized Port of Keelung are very similar to what we have at the Port of Redwood City. Generally, the ports in Taiwan have broader authority and responsibilities, particularly on the water, than we have here at the Port of Redwood City. They have their own police and are responsible for patrolling the entire harbor and waterways. They also have vessel traffic control responsibilities that are not often seen in U.S. ports.
Commissioner Dodge and Giari made a presentation at the APP Annual Conference on Improving Port Efficiency. They described the Wharves 1 and 2 Project that is currently going through the Environmental Review Process at the Port of Redwood City and showed what the old wooden wharf structure looks like. In comparison, they showed what the new wharf structure will look like and how it will be able to accommodate two ships at a time instead of one, and unload both cement and aggregates at the same time. Giari said that the membership of APP is leaning more toward medium and smaller sized commercial ports rather than the big container ports. The topic of their presentation was relevant to the interests of the APP Conference members and was well received.
At the end of the Conference, Dodge, Kastrop, and Giari had an opportunity to tour Kaohsiung Harbor in the southern part of Taiwan. Giari said that it is probably among the top 10-12 container ports in the world and we were able to see a wide variety of port operations. Giari commented that they appreciated the Port of Kaohsiung hosting a very informative tour.
Commissioner Dodge commented that they took a high-speed train from Taipei to Kaohsiung. The 300-400 mile, non-stop ride only took an hour and a half. It was very impressive in that the ride was very comfortable and the facilities were very nice. Dodge said that if the State of California can do anything like that, it would be very successful.
Commissioner Kastrop also commented that she appreciated meeting with vice presidents of two major container shipping companies in the world, Yang Ming and Evergreen. An interesting discussion was about their continuing process of adapting their ships to become more “green”.
Commissioner Dodge said they also had an opportunity to meet with a gentleman from the Asian-American Chamber of Commerce, who is based in Los Angeles. Dodge suggested that Port Commissioners and staff get to know him and his organization to find out if they have mutual interests with the Port of Redwood City.
IX. ADJOURNMENT
At 8:45 a.m. Chairman Garcia requested that the Commission adjourn to its next regularly scheduled Meeting of September 9, 2009.
A Motion to Adjourn was made by Commissioner Dodge. 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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