BOARD OF PORT COMMISSIONERS
REGULAR MEETING
WEDNESDAY – September 9, 2009
MINUTES
I. CALL TO ORDER
8:00 A.M.: Chairman Garcia, presiding
Commissioners Present: Commissioner Richard A. Dodge (arrived at 8:05 a.m.); Commissioner Larry R. Aikins; Secretary Lorianna Kastrop; Vice Chairman Richard S. Claire; and, Chairman, Ralph A. Garcia, Jr.
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; Assistant Manager of Operations, Eric Napralla; Accounting Clerk, Linda Hawkins; Administrative Assistant, Margaret Astesano; and, Executive Assistant, Rita F. Artist
Commissioner Kastrop led the Pledge of Allegiance.
II. APPROVAL OF MINUTES:
A Motion to Approve Minutes of Regular Meeting of August 26, 2009 was made by Commissioner Aikins and seconded by Commissioner Kastrop. Commissioner Dodge was absent. Commissioner Claire abstained. The motion passed by a unanimous voice vote of remaining Commissioners.
III. CLAIMS:
A Motion to Approve Claims was made by Commissioner Aikins. It was seconded by Commissioner Kastrop. Commissioner Dodge was absent. The motion passed by a unanimous voice vote of all Commissioners present.
IV. RESOLUTION
A. RESOLUTION APPROVING AND AUTHORIZING MEMORIAL PLAQUE FOR GUY H. SMITH PORT COMMISSIONER 1984-2005
At the request of Chairman Garcia, Commissioner Aikins read aloud the Resolution Approving and Authorizing Memorial Plaque for Guy H. Smith. Vice Chairman Claire commented that he served with Smith on the Planning Commission for 4-years prior to Smith becoming a Port Commissioner. Smith served his community well as an outstanding commissioner on both the Planning and Port Commissions. Executive Director Giari said the plaque will be mounted on the Port’s switch engine at a future ceremony.
A Motion to Adopt was made by Commissioner Claire. It was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of all Commissioners.
RESOLUTION
B. RESOLUTION APPROVING CONTRACT DOCUMENT FOR THE MAINTENANCE DREDGING OF WHARVES 1, 2, 3, AND 4 PROJECT AND AUTHORIZING AND DIRECTING ADVERTISEMENT FOR BIDS THEREFOR
Executive Director Giari explained this item is for maintenance dredging of the berthing area for ships at Wharves 1, 2, 3, & 4. Maintenance dredging was last performed in 2004 and the berth areas have since silted in. Some now have depths of only minus 26.3 feet. Ships calling at the Port need berthing depths of a least 33.5 feet at low tide in order to be loaded to maximum drafts. The Port retained the services of Moffatt & Nichol to prepare the contract documents. The total estimated volume of dredged material is 40,732 cubic yards and the disposal of all but approximately 6,000 cubic yards of dredged material will be at the Alcatraz Island site. The 6,000 cubic yards of material with elevated levels of PAHs will be disposed of at an upland rehandling site in a small area of the Cemex Aggregates Construction Materials Park where it will be dried out and retested prior to final disposal.
Don Snaman, Project Manager, stated that a pre-bid meeting is scheduled on September 23, bids are due and will be opened on October 2. The engineer’s estimate for the project is $864,000.
Chairman Garcia asked if the estimate had a contingency for the 6,000 cubic yards of material that has to be dried out in the event that the retested material requires more costly disposal. Giari said that the engineer’s estimate does not include the cost of hauling the dried out dredged material to an offsite location.
Commissioner Dodge inquired about the “dilution is the solution” theory. Snaman explained that eight sediment samples are taken in front of each berth and made into a composite. If there is an elevated level of contamination, each individual sample is then analyzed. When the 6,000 cubic yards of material with elevated levels of PAHs are taken to the upland site, mixed with other materials that are not contaminated, dried out and retested, there is a probability of it having a beneficial reuse.
In response to inquiries from Commissioners Dodge and Kastrop regarding permits, Snaman explained that the Corps of Engineers’ permit is good for ten years and the B.C.D.C. permit was good for five years, lapsing in March 2009. However, only one episode of dredging has been performed since the permit was issued. There is a water quality certification from the California Regional Water Quality Board for each dredging episode. The testing done in accordance with the Sampling and Analysis Plan was approved by the agencies last year. These approvals streamline the process for getting individual authorizations or certifications.
Commissioner Kastrop asked if the disposal site at Alcatraz was being phased out. Giari said, “Yes”, that compared to the amount of dredged material that went there ten years ago, the amount of material going there today is less. However, the Alcatraz site is still available for this dredging episode.
Chairman Garcia inquired about the reason some of this dredged material did not go to Bair Island. Giari explained that we would have had to notify the agencies in the beginning when we were testing the dredged material. At that time, we did not know that Bair Island would be an option. There are also two channel dredging episodes coming up for the Corps of Engineers; the first episode will pump 75,000-100,000 cubic yards to Bair Island. When it receives that material, the site on Bair Island will be full. We are working with the Corps and our congressional representatives to get an expanded area of Bair Island prepared for future dredged material containment.
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.
V. MOTION
A. MOTION APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT FOR INITIAL STUDY/CEQA ANALYSIS FOR THE SRDC FACILITY-(URS CORPORATION)
Click here to view the Staff Agenda Sheet for this item
Executive Director Giari suggested that Items V-A and V-B be discussed together since they are related to each other. Giari requested that Item V-B be voted on first since it will authorize reimbursement for the CEQA study in Item V-A.
Giari explained that both Items V-A and V-B involve a proposal by SRDC, Inc. to have a recycling facility located on the old Texaco Liquid Bulk Terminal site. The material to be recycled would be construction demolition debris (C&D) and green wood wastes. SRDC is currently operating a C&D and wood-chipping facility on a 3.5 acre portion of the site with portable equipment under a month-to-month rental agreement with the Port. SRDC is considering the feasibility of loading the recycled woodchips onto barges for shipments to the Sacramento area. SRDC’s proposal is to expand their operation to include up to 9-acres of the area and increase the capacity of the C&D recycling and the wood-chipping under a lease agreement with the Port.
Giari commented that an analysis of the environmental impacts of the proposed project must be completed in accordance with CEQA. SRDC has agreed to enter into a reimbursement agreement with the Port whereby they would reimburse the Port for the cost of the environmental studies plus a ten percent administrative fee. Based on this understanding with SRDC, the Port issued a Request for Proposals to prepare the Initial Study and other documents. After reviewing the six proposals submitted, URS Corporation is the firm Staff recommends to perform the studies.
Commissioner Dodge expressed his concern about noise affecting the adjacent office tenants and asked if any complaints had been received due to the temporary, smaller size operation. Giari replied that there have been only a few complaints about noise, which SRDC has resolved by moving equipment around in order to minimize the noise. A fence and a barrier between SRDC’s operations and the Portside I offices has worked well as a dust and sound screen. SRDC sprays water as a dust deterrent on the piles and the areas where trucks and other vehicles are driven. Improvements would be made to the operation under the proposed agreement which would further minimize noise and dust impacts.
Commissioner Kastrop asked Jeffrey Zimmerman, Project Manager, URS Corporation, if URS would be able to mitigate truck traffic at the Woodside Road/Highway 101 interchange. Zimmerman replied that trucks, for example, could be restricted from driving through that interchange during peak early morning and late afternoon traffic periods.
Commissioner Aikins commented that the RFP for this item says the permitted capacity would increase from 175 tons per day to 1200 tons per day and asked if the actual output is anticipated to grow to 1200 tons. Marc Ferrari, SRDC, Inc., explained that because of their current month-to-month rental basis there are two permits – a wood chipping permit for 500 tons and a C&D permit for 175 tons. SRDC would like to group it together into one permit with a capacity of 1200 tons per day under the proposed lease agreement.
Chairman Garcia inquired about costs for the public to use the SRDC facility and if the costs are compatible to current charges at the transfer station. Ferrari replied that SRDC is currently accepting C&D and wood wastes from local residents and that SRDC’s charges are less than those at the transfer station in San Carlos.
Chairman Garcia questioned the timing of going through the CEQA process at this time versus when the temporary month-to-month lease was signed. Giari answered that the permits for SRDC’s levels of operations at that time did not require CEQA documentation.
Commissioner Kastrop asked about the length of time being discussed for a long term lease. Giari answered that SRDC has proposed a 15-20 year lease. Kastrop next asked about the likelihood of barging woodchips and when that would happen. Ferrari replied that they are in discussion with a company that is anxious to start their operation and the company is willing to pay top dollar to barge them from Redwood City to Sacramento.
Chairman Garcia commented that in looking toward the future, the need for recycling materials will only continue to grow. The Port needs to consider accommodating companies that not only will use the wharves but will recycle at the same time.
Linda J. LeZotte of Ten Almaden, Suite 1250, San Jose, CA 95117 commented that her firm sent a letter to the Executive Director indicating that this action should have been taken when SRDC got their medium volume permit and came onto the site. Commissioner Dodge asked LeZotte to identify her company. She responded that it is her law firm and she is a land use attorney in San Jose. LeZotte asked for a copy of the RFQ and the proposal made by URS Corporation. Stating that she was reiterating for the record, LeZotte again requested notice of any items regarding this project that come before the Port Commission and/or any filings that happen under the CEQA law.
LeZotte also asked if BCDC needs to be advised of the potential for barge operations; and, will the Seaport Plan or the BCDC Plan need an amendment to allow the barge operations?
Commissioner Kastrop asked if LeZotte represents another company or if this is her personal interest. LeZotte replied, “Both.” Kastrop asked which company she represented and LeZotte responded that she is not at liberty to disclose that.
At this time, Chairman Garcia requested a motion and roll call vote on Item V-B, MOTION APPROVING AND AUTHORIZING EXECUTION OF REIMBURSEMENT AGREEMENT – (SRDC, INC.)
A Motion to Approve was made by Commissioner Kastrop. It was seconded by Commissioner Dodge. The motion passed by a unanimous roll call vote of all Commissioners.
Chairman Garcia next requested a motion and roll call vote on Item V-A, MOTION APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT FOR INITIAL STUDY/CEQA ANALYSIS FOR THE SRDC FACILITY-(URS CORPORATION)
A Motion to Approve was made by Commissioner Aikins. It was seconded by Commissioner Kastrop. The motion passed by a unanimous roll call vote of all Commissioners.
MOTION
B. MOTION APPROVING AND AUTHORIZING EXECUTION OF REIMBURSEMENT AGREEMENT – (SRDC, INC.)
Refer to Item V-A for discussion of this item. The action for this item was taken following the discussion and prior to action being taken on Item V-A.
VI. PRESENTATION by Cynthia Hampton, Director of Finance and Administration
A. FY 2009 UNAUDITED ANNUAL FINANCIAL STATEMENTS – (June 30, 2009)
B. CERTIFIED QUARTERLY INVESTMENT REPORT – (For Quarter Ended June 30, 2009)
Ms. Hampton presented the unaudited Fiscal Year financial statements and accompanying report and notes. Her presentation included a review of the components of tonnage, operating revenue, operating expense, operating income, non-operating income/(expense), subvention, and net income after subvention. Actual fiscal year to date 06/30/09 results and statistics were compared with budget and last year, and noteworthy items were explained in greater detail.
After concluding the financial results presentation Ms. Hampton addressed the Liquid Bulk Terminal write off in greater detail. She explained that it was classified on the Statement of Activities and Changes in Net Assets (Income Statement) as an extraordinary item and therefore did not impact FY09 net income after subvention; rather, it was recorded as a reduction in capital assets and a reduction in net assets (equity) on the Statement of Net Assets (Balance Sheet).
Ms. Hampton reported that Mr. Ahmed Badawi, partner in the firm Caporicci & Larson, CPAs, was scheduled to deliver the audited financial statements and make a presentation, including audit findings if any, to the Board at its meeting scheduled on September 23, 2009.
Ms. Hampton moved on to the Quarterly Investment Report. The total amount of cash and investments at June 30, 2009 was $17.1 million. Of that amount, $16.2 million was Unrestricted and $905,000 was Restricted. She commented that interest rates and earnings on investments are very low, and that she will be examining investment alternatives for the 1999 Series Bond reserve on deposit with the trustee, U.S. Bank.
PRESENTATION by Dave Hunt, Executive Director, Association of Pacific Ports (APP)
Executive Director Giari commented that the Port of Redwood City is a long time member of APP, formerly known as “PCAPA”, along with numerous other ports on the North American West Coast, the Pacific Islands, and Taiwan.
Mr. Hunt thanked the Port of Redwood City for being both a long time and very active member of APP. Hunt commented that APP is unique in spanning multiple governmental jurisdictions throughout the Pacific. The organization’s priority issues cover Port Security, Governance, Community Relations, Communications, Environmental Challenges & Opportunities, Technology, Infrastructure, Trade and Cross-Pacific Partnerships. Recent APP events included the successful Fly-in/Fly-out Seminars, which have been very helpful in focusing on these specific topic areas. In November 2009 a Fly-in/Fly-out Seminar is scheduled to be held in San Francisco. “Recession Recovery: Navigating Back to Prosperity” is the featured topic. Experts from the private sector, some academic and some economists, will discuss the forecast of what ports can expect in the future.
The last two APP Mid-Year Conferences were held in Honolulu, Hawaii. This is believed to have increased participation from all sides of the Pacific by increasing the accessibility of the location. Hunt commented on how much consistency there is across state lines, provincial lines, and national lines in terms of the types of issues that different ports and countries are facing. Priority issues are those that share best practices and help build cross-Pacific relationships and partnerships.
Commissioner Kastrop commented that the Taiwanese ports have been very gracious about attending meetings in the U.S. She said there was not a strong representation from North American ports at the recent Annual Conference held in Taiwan and suggested that members of APP be encouraged to reciprocate with each other’s events.
Commissioner Claire commented that he has attended two of the APP seminars and, as a new port commissioner, found them to be very informative.
Commissioner Dodge said that the most important thing about APP, compared to any other port organization, is that it is a commissioner run, commissioner oriented organization. Programs directed at port commissioners make APP unique and valuable.
Commissioner Aikins commented that there has been a dramatic change over the last several years under Hunt’s leadership in how well the organization is run, how well it communicates with its membership, the content of its programs, as well as all other aspects.
VII. PUBLIC COMMENT:
None
VIII. MATTERS OF BOARD INTEREST:
None
IX. EXECUTIVE DIRECTOR'S REPORT:
Executive Director Giari reported that the Redwood City Pride and Beautification Committee will have its annual Coastal Clean Up Day at the Fall Clean Up on Saturday, September 19. The Port has participated in the past and tries to encourage other organizations that are interested in the shoreline area of Redwood City to participate. Plans are to meet at the Redwood City Public Works Department, 1400 Broadway, at 8:30 a.m. on Saturday, September 19.
X. ADJOURNMENT
At 9:30 a.m. Chairman Garcia requested that the Commission adjourn to its next regularly scheduled Meeting of September 23, 2009.
A Motion to Adjourn was made by Commissioner Claire and it was seconded by Commissioner Dodge. The motion passed by a unanimous voice vote of all Commissioners.
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