Maritime Commerce Advisory Committee
Meeting Summary Notes
November 15, 2007
Board Members – Richard Smith, Phil Eastman, Bill Butler, Tom Escher, Marina Secchitano, David Gavrich, Frank Johnston, Anthony Bruzzone, Lawrence Thibeaux, Leif Gistrand, Jim Staats
Port Staff - Jim Maloney, John Davey, Denise Turner, Louise Anderson, Anita Yao, Rich Berman, Jennifer Sobol, John Doll, Denise Lum
Thomas Clark, Ed Curran, Farless Dailey, Carey Dall, Ron Dean, Pete Grossgart, Bobby Guillory, Carl Hanson, Ira Maybaum, Pete McIsaac, Brian McWilliams, Fred Pecker, Roger Peters, Frank Riley, Fred Sherman, Steve Ware, Jim Wiltshire
Jim Maloney opened the meeting by having people introduce themselves. Newest committee member, Jim Staats, of MEBA, D1 (Marine Engineers' Beneficial Association) was in attendance for the first time replacing Jim Anderson. Peter Dailey was called to another meeting in Emeryville regarding the oil spill and was not able to attend.
Environmental Risk Management Policy – update
Rich Berman advised that the Port Commission approved the policy which is effective immediately for all new agreements, including every lease, lease renewal, lease amendment, sublease, assignment, license, and permit to enter. The Port feels that the risks they are dealing with warrant the protection the policy provides. The Port has reviewed precedents in regulation and has outlined methods for determining and evaluating risk in an effort to apply the policy fairly. Staff will speak with lease applicants in order to understand their business and potential risks to the Port. Rich Berman also addressed two issues raised at the last MCAC meeting: 1) It is standard practice in commercial leasing that tenants are not entitled to accrue interest on deposits; 2) Port staff and the Port Commission agree that Pollution Legal Liability Insurance and Financial Assurance are not duplicative.
Committee members expressed other concerns (i.e. implementation of policy, methods of risk analysis, financial risks, overlapping coverages, overall excess coverage) and in general, felt uncomfortable with this new policy. Anthony Bruzzone suggested having the Risk Manager attend the April 17th meeting for clarification and further discussion.
Cosco Busan Incident
John Davey confirmed the first responder to the oil spill is the U.S. Coast Guard, and not thePort of San Francisco. The O'Brien group is contracted by U.S. Coast Guard to assist with the clean up. John also commented that 14,900 gallons of oil were collected; over 1,500 people were involved in cleanup efforts; signs were posted advising that the water is polluted and to not swim or fish; and boaters were urged to not go into Bay waters. The size of the total affected area is unknown. For any inquiries, the general public is encouraged to call 311; for sightings of oil, 415.392.9617; for wildlife, 415.701.2311; and for insurance claims, 866.442.9650. The vessel is currently berthed at Pier 70 for wetdock repairs. Marina commented that the IBU offered labor assistance to the Coast Guard for their clean up effort. Port staff assistance was offered as well.
Cruise Terminal Advisory Panel update
John Doll informed the group that Pier 35 had 5 -7 years of life left and the Port is looking to rebuild Pier 27 for a mixed use project which would include a new cruise terminal. Pier 27 is recommended as the primary berth because it is the longest berth and the shed is in great shape. The plan was approved but not accepted by the Port Commission. Many expressed concerns (source of funds, vehicular traffic, and overcrowded streets) but all agreed to recommend that the Port and City move forward with a new cruise terminal. John indicated the Port needs one that meets industry standards if San Francisco wants to stay in the cruise business.
Signing Ceremony – BAE – Princess Drydock modification
Jim briefly mentioned the event went well at City Hall. (October 29, 2007). Several MCAC members were in attendance.
Pier 96 Request for Proposals (RFP) update
Jim presented the request to authorize issuing an RFP to the Port Commission on November 13 and it was approved. Going forward, the Port will market the RFP widely; give tours of the facility between 12/3-12/29; receive bids until the end of February 2008; evaluate all responses; and hopefully by late spring have a lease to present to the Port Commission for approval. It was requested that the staff report to the Commission be emailed to the group with the summary notes.
David Gavrich briefed the group on how using rail vs. trucking would alleviate traffic and reduce greenhouse gases by 90% (source: Environmental Protection Agency and Association of American Railroads). The rail tunnels 3 & 4 on the main Caltrain line will be tested for clearance hopefully in December to see if they will accommodate 19' high auto railcars, which along with the Illinois Street Bridge would allow the Port to market Pier 80 to the auto industry. The Illinois Street Bridge southern rail approach is scheduled for completion by mid-January 2008.
Southern Waterfront Community Benefit and Beautification Policy update
The Port proposed to assess a one-time new fee for new leases south of Mariposa Street to beautify the area. This was approved with the revision that the funds would be set aside from monthly lease revenues rather than comprise a new fee.
To follow up on recent MCAC discussions on the labor issue at Pier 92, Jim checked the minutes back to 2001, labor issue discussions regarding RMC were not in the MCAC meeting minutes, but were discussed in the SWAC meetings in May and June 2001. This topic led to more discussion of when RMC, now CEMEX, was moved to Pier 92 from their desired Pier 80 location, and the effects this had on Local 10. In summary, Lawrence Thibeaux advised the ILWU Local 10 and Operating Engineers Local 3 are now in a jurisdiction dispute .
Next regular meeting will be Thursday, January 17, 2008, 11:30 – 1:00 Pier 1 Bayside 1 & 2 Conference Rooms
- Agenda is to be determined as meeting ended at noon and many members were unable to stay. Please submit suggested agenda items to Jim.