Maritime Commerce Advisory Committee
Meeting Summary Notes
July 12, 2007
Board Members – Anthony Bruzzone, Tom Escher, Frank Johnston, Phil Eastman, Bobby Guillory, Fred Sherman, Richard Smith, Ed Curran, Marina Secchitano
Port Staff - Peter Dailey, Jim Maloney, David Beaupre, John Davey, Nick LaRocco, Denise Turner, Louise Anderson, Sidonie Sansom, Mike Nerney, Gerry Roybal, Anita Yao, Aaron Golbus, Sean Jenkins
Peter Dailey opened the meeting by introducing three new Port employees: Jim Maloney, Maritime Marketing Manager; Aaron Golbus, Wharfinger, and Sean Jenkins, intern from the California Maritime Academy. Jim replaces Jill Simpson-Rodby and will be the port's new liaison to the MCAC.
Port Security Grant Update
Sidonie Sansom, Port Director of Homeland Security, reported Port of SF received $1.522M in grant funds for two projects: to complete installation of high security fencing on the Port of San Francisco, and for an area-wide security assessment. The Port is also requesting State Prop 1B Infrastructure Bond funds for miscellaneous security upgrades at the Port and possible matching funding for Federal grant projects.
There was discussion about notification to the public of procedures in the case of emergencies, such as the bomb scare at the Ferry Building the day of the All Star Game. It was agreed to continue discussion on improved interagency communications between SFPD, U.S. Coast Guard and ferry service providers at the next meeting. Also discussed was the idea of pursuing Proposition 1B funding for port security and getting MCAC help to lobby for his funding in Sacramento. Tina Olson and Daley Dunham will be invited to the next meeting to speak about this in more detail.
Pier 80, 94/96 Cargo Tonnage / Pasha Auto Terminal
Peter Dailey, Deputy Director for Maritime, reported on cargo tonnage and opportunities at Piers 80 and 94/96. Pier 80 receives breakbulk cargo consisting primarily of structural steel, rebar and steel coils. Pier 80 received 225,000 tons of cargo in 2006, and 2007 volumes are down slightly. Piers 94/94 receive dry bulk cargo, which have remained steady and strong, though aggregate volumes are down approximately 10% over last year.
Peter reported that the deal with Pasha to move GM automobiles through Pier 80 is on hold. The Port marketed the terminal jointly with Pasha to GM, who was initially very interested in spite of the rail tunnel height clearance issue that precludes tri-level auto cars. GM indicated it would move the autos via truck for the first 3-4 years, but their needs then changed to require more rail. Also, Pasha uses Teamsters labor at their auto facilities in both Richmond and Benicia and would have wanted to use Teamsters labor as well as ILWU at the Port of San Francisco. The Port will continue pursuing discussions with Pasha and monitor developments. David Beaupre pointed out that the tunnel issue is a matter of inches, but the project to expand the tunnels will still cost approximately $8 million. It was agreed to discuss the tunnel issue further at the next meeting.
Illinois Streeet Bridge update / Lease with LB Railco
Peter reported that the Illinois Street bridge is fundamentally completed, though contractors will be onsite until early 2008 to complete the southern rail and roadway approach. Also, the Port entered into a lease with LB Railco for short-line rail haul for the Port.
Pier 96 RFP plans
The Port has received inquiries for additional bulk cargo facilities on a 15-acre parcel at Pier 96. An RFP will be put together and issued over the next two months for business at this parcel.
Backlands June 9 Community Meeting update
David Beaupre, Port Waterfront Planning, provided an extensive overview of potential development ideas for 45 acres of underutilized and vacant property in the Port backlands area near Piers 90-96. Ideas include developing 750,000 square feet of warehousing space, however studies show this is not economically feasible given the underlying land is on non-engineered landfill and would require extensive piling. A more promising idea is to develop the area into an eco industrial project that could include a City biodiesel manufacturing facility; a new DPW asphalt batching and concrete crushing facility; and a new SF PUC wastewater solids handling plant to replace an aging existing plant in the area. Plans were presented at a June 9 community meeting in the Bayview, with follow up workshops to follow in the coming months. More details on the project can be found on the Port's website at: http://www.sfport.com/site/port_page.asp?id=31783
Cruise Terminal Advisory Panel recommendations
Peter provided an update on the Cruise Terminal Advisory Panel. The Pier 30/32 cruise terminal developers chose not to extend on their exclusive right to develop the property. The Port will receive payment of $18 million for condo sales and $9.5 million for sale of the land per the agreement. The panel will likely come up with an alternative proposal to present to the Port Commission for a cruise terminal at Pier 27. Pier 27 is in good shape seismically and otherwise with a long berth, wide apron and internal traffic courtyard that would reduce Embarcadero congestion. This alternative would likely be cheaper than fixing Pier 35, with a projected cost of $39 million for one berth and $57 million for two. The terminal building would likely provide banquet/meeting room facilities when not used for cruises projected at 80 days per year.
Draft goals/objectives review
Discussion then turned to MCAC goals and objectives for 2007-08. It was agreed each member would study ideas for what they would like to see for objectives for the coming year. Tom Escher agreed to lead a subcommittee to develop these and include discussion of Diane Oshima's memo. Fred Sherman and Jim Maloney volunteered to participate on the subcommittee, which will meet the week of July 23 and present its ideas at the next MCAC meeting.
MCAC Membership involvement and responsibilities/guidelines
A port advisory group memo issued by Port Assistant Deputy Director for Planning, Diane Oshima, was discussed. The goal is to have uniform rules of engagement for Port advisory groups. These would include recognizing the Port Commission's role as the primary policy-making body for the Port with advisory groups acting on commission initiatives; quarterly meetings recommended; full and active memberships; consensus rather than voting decision-making; summary notes of meeting rather than detailed minutes to reduce impact on Port staff's time; and guidelines for providing information on conflicts of interest.
An inquiry was made about Ferry terminal rate structures. Port staff will present their recommendations to the Port Commission and it was agreed to first circulate the recommendations to the MCAC for review. This will be done once the recommendations are completed.
Next meeting Thursday, September 20, 2007 11:30am-1:00pm Pier 1
Tentative Agenda Items for next meeting:
Proposition 1B money for port security and possible emergency command center
Discussion of rail tunnels
MCAC goals and objectives for 2007-08 (at least half of meeting)