BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – December 10, 2008
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Dodge, presiding
Commissioners Present: Lorianna Kastrop; Larry Aikins; Vice Chairman Ralph A. Garcia, Jr.; and Chairman Richard A. Dodge
Commissioners Absent: Secretary Richard 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; and, Executive Assistant, Rita F. Artist
Commissioner Garcia led the Pledge of Allegiance.
II. APPROVAL OF MINUTES
A Motion to Approve Minutes of Regular Meeting of November 12, 2008 was made by Commissioner Kastrop with the stipulation that a spelling error be corrected from transit to transient under Item III. Claims. The Motion was seconded by Commissioner Garcia. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
Commissioner Kastrop commented that a spelling error was made in the minutes of the November 25, 2008 Special Meeting Item III. JOINT STUDY SESSION WITH REDWOOD CITY PLANNING COMMISSION ON GENERAL PLAN TOPICS, page 5. The name Felony should be corrected to Felong.
Commissioner Dodge commented that a correction should be made in the minutes of the November 25, 2008 Special Meeting Item III. JOINT STUDY SESSION WITH REDWOOD CITY PLANNING COMMISSION ON GENERAL PLAN TOPICS, page 7. His response to Planning Commissioner Radcliffe should read that he would not like to see a hotel built there but would like to see other businesses develop that would enhance ferry service.
A Motion to Approve Minutes of Special Meeting of November 25, 2008 was made by Commissioner Garcia with the stipulation that corrections by Commissioners Kastrop and Dodge be included. The Motion was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
III. CLAIMS
Commissioner Aikins commented on expenditures to Best Buy and Dell computers for equipment, which are part of a State of California grant for Emergency Preparedness. Executive Director Giari explained that equipment was purchased through the Port Security Grant funds in preparation for an emergency/an Emergency Operations’ Center at the Port. A summary of the equipment purchased will be provided to the Commissioners.
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 Claire was absent.
IV. RESOLUTIONS
A. RESOLUTION APPROVING STANDARD SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (FOOMOJO, INC.)
B. RESOLUTION APPROVING SECOND AMENDMENT TO SUBLEASE AGREEMENT – (Portside Investors – Phase I Lease Agreement) – (REALTY INVESTORS ASSURANCE CORP.)
Items IV-A and IV-B were discussed and handled as one item.
Commissioner Aikins inquired whether or not the effective date of the sublease agreement for Foomojo, Inc. should be 2008 or 2009. Executive Director Giari replied that the sublease went into effect in January 2008 and was not reported to the Port until last month. Chairman Dodge suggested that the Port request a monthly rental report from Portside Investors.
A Motion to Approve 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.
C. RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT BY AND BETWEEN NEXTEL OF CALIFORNIA, INC. (ASSIGNOR) TO TOWERCO ASSETS LLC (ASSIGNEE) AND AUTHORIZING EXECUTION OF DOCUMENT – (MOBILE RADIO/TELEPHONE SERVICE SITE)
Executive Director Giari gave a brief background report on Nextel’s lease of a fenced 30’x40’ area at the Port on which Nextel has located a radio/telephone base station. Through a series of mergers, Nextel assigned the lease to TowerCo Assets, a subsidiary of Nextel. The Port Commission’s consent to this assignment would bind Nextel and TowerCo to all of the terms, conditions, and obligations of the lease agreement.
Commissioner Kastrop asked if regular rent increases are part of the original 20-year lease agreement and Giari replied, “Yes”.
Chairman Dodge inquired about “a series of mergers” mentioned previously and Attorney Sorba explained that the assignment and mergers were done at the same time as part of the same transaction.
A Motion to Approve 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.
D. RESOLUTION APPROVING JOINT USE OF TRACK AGREEMENT BETWEEN UNION PACIFIC RAILROAD, THE PORT OF REDWOOD CITY, AND SIMS GROUP USA CORPORATION
Executive Director Giari explained that in 2006 the Port was notified by Union Pacific Railroad that Port tenants using the Port’s tracks for deliveries of railcars by UP will need to have a Joint Use Agreement between UP, the Port and that tenant. Giari stated that Sims is the largest recycle metal company in North America and that their occasional use of the Port track has increased significantly in recent months. Simsmetal is requesting the use of approximately 450’ of the Port’s track to receive deliveries of shredded scrap metal by railcar to supplement their raw materials typically delivered by trucks.
Chairman Dodge asked why UP requires a Joint Use Agreement for track owned by the Port. Giari explained that UP locomotives and railcars use the Port’s track, and in some cases, the tenant’s track; therefore, UP wants an agreement with the Port and the tenant that indemnifies UP.
Commissioner Kastrop commented that processing of this agreement incurred a $500 administrative handling charge imposed by UP and asked if this $500 would be charged back to Simsmetal. Giari replied, “Yes”.
Commissioner Aikins asked if the increase in railcar activity by Sims indicates an increase in their volume. Giari replied that although we anticipate an increase in Sims’ volume, the market for scrap metal and all recyclables is very volatile. Giari was reluctant to predict a possible 10%-25% increase as a result of Sims’ current activity at the Port.
Commissioner Garcia asked if Sims has requested the use of additional property at the Port. Giari responded that because Sims has invested in new equipment and redesigned the layout of their yard, they do need more space. Staff is in the process of making a small area, approximately less than ½ acre of Port property adjacent to Sims, available for their use. Sims has indicated that they would like to have even more space if it became available.
Executive Director Giari explained that Warehouse 2 on Hinman Road was under a lease agreement to Lyngso for several years. Lyngso recently went on a month-to-month permit and has now requested to vacate Warehouse 2. Sims is considering use of the warehouse and Port staff has also started discussions with CEMEX Aggregates about the warehouse space.
A Motion to Approve 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.
V. MOTIONS
A. MOTION APPROVING AND AUTHORIZING EXECUTION OF FOURTH AMENDMENT TO AGREEMENT FOR PROFESSIONAL PUBLIC RELATIONS SERVICES – (SANDUL COMPANY, INC.)
Executive Director Giari explained that under this agreement, Duane Sandul has provided public relations services to the Port since 2001 including the production of the Port’s newsletter, Currents, press releases, and is currently researching a Port video for our website. He is very knowledgeable about the Port because of his years of experience with the Port and he is active with the American Association of Port Authorities regarding public relations performed at other ports within the United States.
Commissioner Garcia asked if the Port pays for Sandul’s attendance at AAPA meetings. Giari explained that it is usual for agreements with consultants to provide for the consultant’s expenses in performance of their consulting services. Sandul’s agreement is similar in that if the Port requests that he attend a meeting as a representative on behalf of the Port, his registration fee and travel expense would be paid by the Port. During the last two years, Sandul’s primary travel for the Port has involved his attendance at the American Association of Port Authorities’ Public Relations Committee. Garcia asked how Sandul’s attendance at the AAPA Public Relations Committee meetings was of benefit to the Port. Giari responded that Sandul is able through his membership and association with the AAPA Public Relations Committee to keep up with what is current in the port industry in general, such as the Harbor Maintenance Tax and other things that impact the Port. He learns what other ports are doing with regards to public awareness, media relations, and how best to relate port activities to the public.
Commissioner Aikins commented that Sandul’s compensation for his services has remained at the same level for several years. Giari replied that there has been no change since at least 2005.
Commissioner Garcia commented that he thinks the Port video should be completed as quickly as possible and asked when it would be ready for our website. Giari said he would ask Sandul to provide an update. Commissioner Kastrop commented that she discussed a Port video with Sandul and that he already has the content for a video - that it would only require photographic images. Kastrop agrees that it should be completed quickly and that a Port video would give the Port a higher profile within the community. She thinks it would be cost effective to hire someone to provide the images with Sandul providing the message.
Chairman Dodge said that he has always supported the idea of a Port video but that the cost stymied its production in the past. It is worth looking into finding someone who can make it look professional and get across a positive Port image at a reasonable cost.
Returning to the topic of Sandul’s services, Chairman Dodge commented that Sandul is a very valuable resource for the Port because of his years of experience as a newspaper reporter covering Redwood City, the County, and the region. His knowledge of the local political situation provides us with updates on issues that might affect the Port. Dodge is in favor of extending Sandul’s agreement.
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 Claire was absent.
VI. PUBLIC COMMENT
Robert Hoffman, Maxwell Lane, Redwood City presented a framed original copy of the 1937 “PORT REDWOOD MARCH” historic sheet music commemorating the dedication of the opening of the Port of Redwood City. This original copy was found in a Nevada City, CA antique shop in 1997 by Paul and Elaine Anderson of the San Jose Sailing Club. Recognizing its historical significance, they presented it to a member of the Sequoia Yacht Club. As Sequoia Yacht Club’s historian, Mr. Hoffman realized that it was a significant part of the Port’s history and thought it should be displayed at the Port of Redwood City. Mr. Hoffman framed the sheet music and memorabilia and presented it to the Port Commission at today’s meeting.
On behalf of the Port Commission, Chairman Dodge thanked Mr. Hoffman for this historical gift. Commissioner Kastrop volunteered to find musicians to play the music at a future event.
Commissioner Aikins commented that Bob Hoffman was the driving force behind the book, “Redwood City’s Hometown History”. Aikins said that it is a terrific book and that he recommends people buying it for themselves or for giving as a holiday gift.
VII. MATTERS OF BOARD INTEREST
Commissioner Kastrop commented that Port staff did an excellent job on the Bair Island Partnership event, which was held at the Port on December 8. Ms. Kastrop said the event was impressive for a variety of reasons but mainly because groups from disparate points of view came together for one project that would benefit the community.
Chairman Dodge agreed and to follow up on Mayor Foust’s December 8th comments that it is an historic event and truly is the ultimate in recycling, Dodge thinks it is also just the start. Since we have been successful for the first time in using dredge material from the channel for Bair Island restoration, we need to continue discussion about using those materials for building levees. If, what we hear is true about sea level rise in the future, we will need to shore up our levees in Redwood City. Dodge suggested that this be a topic of discussion when the commissioners attend AAPA/C-MANC Washington, D.C. meetings in the Spring.
Commissioner Kastrop commented that on Friday, December 12, the ferry, Gemini, will be launched. The christening ceremony is at 11:15 a.m. at the San Francisco Ferry Building and a reception for the San Mateo Water Transit Advocates Committee and others will be held from 4:00-6:00 p.m.
Chairman Dodge commented that on Thursday, December 11, Mike Giari is being installed as president of the Bay Planning Coalition at its holiday luncheon to be held at the St. Francis Yacht Club in San Francisco.
VIII. EXECUTIVE DIRECTOR'S REPORT
Executive Director Giari commented that the December 8 Bair Island event was historic in that the Port was able to reuse dredge material from the channel for marsh restoration for the first time. Giari also thanked Malcolm Smith, who handles public affairs at the City, for doing such a great job. There was an excellent public turnout for the event.
Director Giari also reported that the Port received a season’s greeting and thank you card from Janet McGovern, Communications Director at CalTrain, for having provided space to decorate the 2008 Train for Tots. In appreciation, CalTrain presented the Port with a commemorative plate for this event.
Chairman Dodge and Giari reminded everyone to attend the Board of Port Commissioners’ Annual Holiday Reception to be held at the Port on Thursday, December 18 from 5:00-7:00 p.m. Past Port Commissioner’s will be recognized and honored at the reception.
IX. ADJOURNMENT
At 8:58 a.m. Chairman Dodge requested that the Commission adjourn to its next regularly scheduled Meeting of December 24, 2008. A Motion to Adjourn was made by Commissioner Garcia and it was seconded by Commissioner Aikins. The motion passed by a unanimous voice vote of all Commissioners present. Commissioner Claire was absent.
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