REGULAR MEETING OF THE BOARD OF PORT ... - Port of Oakland

REGULAR MEETING OF THE BOARD OF PORT COMMISSIONERS 

OF THE 

CITY OF OAKLAND 

The meeting, formal portion, was held on Tuesday, January 4, 1994, at the hour of 

3:11 p.m., in the office of the Board, second floor, 530 Water Street, Oakland, California, 

President Lockhart presiding, appropriate notice having been given and posted. 

Commissioners present: Broussard, Cole, Kramer, Loh, Vohs 

and President Lockhart - 6 

Commissioners absent: Commissioner Ortiz - 1 

Also present were the Executive Director; Deputy Executive Director; Deputy Port 

Attorney, Thomas Clark; Chief Engineer; Director of Aviation; Acting Director of 

Commercial Real Estate, Dennis White; Director of Human Resources; Director of Finance; 

Director of Policy and Strategic Planning; Director of Equal Opportunity; Director of 

Governmental Affairs; Director of Public Affairs; and Secretary of the Board. 

President Lockhart informed the Board that he would call for a closed session at the 

conclusion of the open session for the purpose f discussing personnel matters as provided 

for under Government Code Section 54957. 

Commissioner Broussard, Chair of the Aviation Committee, info i nied the Board that 

the committee had met and reviewed their current agenda. 

Agreement for Professional Services in Connection with Completion of Security 

System, South Airport, MOIA was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board that a contract for the completion of the security 

system at the Airport was based on the receipt of informal proposals. The project is to 

complete the Airport security system started by Information Systems and Networks two years 

ago but only partially completed. Proposals have been received and evaluated and a 

contract has been prepared but not yet executed. The evaluation of the proposals was 

performed by Port staff with help from Asset Protection Consultants, Inc. dba Security by 

Design, a firm that has extensive experience in security systems including several airports.

SBD also assisted the Port Attorney during litigation against ISN concerning the airport 

security system. As the firm can provide certain services to the Port during the construction 

of the security system, it was recommended that the oard find and determine that the 

services to be provided by SBD are professional services and authorize the preparation and 

execution of an agreement with the firm. SBD's services in connection with this project will 

consist of attending jobsite meetings with the contractor, observing the construction work 

and providing advice to the Resident Engineer, reviewing submittal and other construction 

documents, witnessing factory and on-site tests, assisting with the final sign-off inspections 

of the entire system, and performing other construction-related activities at the request of 

the Resident Engineer. The firm will be paid direct salaries of personnel performing work 

on the project, other reimbursable expenses, and fixed fee of $5,700.00. The maximum 

payment which can be made under the agreement is $57,000.00 with $14,000.00 in additional 

work available at the discretion of the Executive Director. The recommendation was 

approved on passage of Resolution No. 94001. 

Mr. Bob Ryan, Project Manager for Lera Electric, appeared before the Board to 

request that the Port reconsider the award of the security contract as his firm had the lowest 

price and were more capable. The Chief Engineer info used that Board that the award of 

the security contract was not before the Board for action as the Board had previously 

delegated the authority to enter into a contract to the Executive Director. The Board 

received Mr. Ryan's appearance without comment. 

Approval of a New License and Concession Agreement with Existing Tenant - Joe 

Lucero Printing was the subject of a memo to the Board from the Director of Aviation 

recommending approval of a new agreement with Joe Lucero for 6,787 square feet of shop 

space in Building L-647, North Airport, at $1,617.97 per month, effective December 1, 1993. 

The recommendation was approved on passage of Resolution No. 94002. 

Approval of License and Concession Agreement - Andy Frain Services, Inc. was the 

subject of a memo to the Board from the Director of Aviation notifying the Board that 

Andy Frain Services, Inc., the provider of security guard checkpoint services at the Airport,

was requested by the Port to relocate their offices in Building M-102 from the East side of 

the mezzanine to a larger office on the North side of the mezzanine. This move was made 

at the request of Airport staff to accommodate the relocation of Aviation Marketing from 

the North Airport to the South Airport. It was recommended that the Board approve the 

new agreement at the same rent of $1,323.97 per month. The recommendation was 


Approval of Second Supplemental Agreements with Alamo Rent A Car, Inc.. Avis 

Rent A Car System, Inc., Budget Rent A Car Systems, Inc., Dollar Systems. Inc., The Hertz 

Corporation. and National Car Rental System. Inc. was the subject of a memo to the Board 

from the Director of Aviation recommending approval of the new agreements to cover 

assigned parking spaces in the Airport's Ready Car Lot located between Terminals I and 

II in the Airport's parking lot. The monthly rent is $34.00 per parking space. The spaces 

are periodically reassigned based on each concessionaire's rental car revenue market share. 

The new agreement would cover: Alamo Rent A Car, Inc., 63 spaces; Avis Rent A Car 

System, Inc., 76 spaces; Budget Rent A Car Systems, Inc., 77 spaces; Dollar Systems, Inc., 

24 spaces; The Hertz Corporation, 107 spaces; and National Car Rental System, Inc., 48 

spaces. In addition, Avis Rent A Car System, Inc. and The Hertz Corporation are assigned 

405 square feet and 540 square feet of land respectively, adjacent to the Ready Car Lot for 

customer service booths. The recommendation was approved on passage of Resolution No. 

94004. 

Approval of Extension of Term of Agreement for Operation and Maintenance of 

Aviation Fuel Storage Facility, Hydrant Fueling System and Service and Maintenance of 

Aviation Refuelers and Services Between Port of Oakland and Oakland Fuel Facilities 

Corporation was the subject of a memo to the Board from the Director of Aviation notifying 

the Board that fuel is provided to air carriers at the Airport through an aviation fuel 

distribution system which consists of aviation fuel storage facilities, fuel tank farms, pumping 

facilities, dispensing facilities, a hydrant fueling system, various aviation refuelers such as 

January 4, 1994 

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trucks and fueling carts and associated equipment, 'The Oakland Fuel Facilities Corporation 

is an association of air carriers that provides air passenger and air cargo fueling services at 

the South Airport. The purpose of the OFFC is to hire a third party to provide fueling 

services for all aircraft at the South Airport and the OFFC is willing to provide fueling 

services on request at the North Airport when fulfillment of the request is not financially 

burdensome and when fulfillment of the request does not violate the terms of the Port's 

Agreement with the North Airport Fixed Base Operator. The term of the Agreement was 

one year ending September 30, 1990. The Port was given three renewal options, with the 

term subject to the final option expiring on September 30, 1993. The Port exercised the 

Options that expired in 1991 and 1992. Port staff and the OFFC have agreed to a mutual 

interest in the continuation of the current relationship between the Port and the OFFC and 

a new agreement is being negotiated. It was recommended that the Board authorize an 

extension from September 30, 1992 through October 1, 1994 of the Agreement for 

Operation and Maintenance of Aviation Fuel Storage Facility, Hydrant Fueling System and 

Service and Maintenance of Aviation Refuelers and. Servicers under the same teims and 

conditions at the current agreement. The recommendation was approved on passage of 

Resolution No. 94005. 

Recommended Adjustment to Passenger Use Fee for International Arrivals Building 

was the subject of a memo to the Board from the Director of Aviation notifying the Board 

that the current fee for the use of the International Arrivals Building is $3.00 per deplaning 

passenger. International Arrivals Building rates are calculated annually based ont he 

number of passengers expected to use the facility and the marketing objective of attracting 

new international services. LeisureAir, a primary charter carrier at the airport, will cease 

operations in Oakland resulting in a decrease in international traffic of approximately 5,500 

deplaning passengers a month. After the departure of LeisureAir, the two remaining 

international carriers, Martinair and Taesa Airlines are expected to deplane 50,000 

passengers through the Building during CY 1994. Based on the reduced activity, it was 

January 4, 1994 - 4 -

ecommended that the Board approve a change to Section 10.2 of Port Ordinance 1149 to 

reflect a $5.00 per passenger fee for passengers utilizing the International Arrivals Building. 

The recommendation was approved on passage of an ordinance to print. 

Approval of Mitigated Negative Declaration/Initial Study for the Jack London 

Square Marine Project: Phase I was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the proposed Jack London Square Marina Project. 

Phase I is to implement needed improvements to recreational boating facilities. These 

improvements will result in upgraded marinas which conform to Department of Boating and 

Waterways standards and improved support facilities for boaters. The project will also 

promote recreational use of the waterfront through increased and enhanced public access 

areas. In June, 1992, the Executive Director of the Port was authorized to execute a loan 

agreement and accept a loan in the amount of $7,176,000.00 from the Department of 

Boating and Waterways for the purpose of developing the boating facilities of the Jack 

London Square on the condition that all environmental review and documentation required 

by the California Declaration/Initial Study has been prepared and satisfying to the 

requirements. Because of the State's budget crisis, DBW has had a reduction in its 

revolving fund which it uses to loan local agencies funds for marina and waterfront 

development. Therefore, the DBW Commission will only be able to authorize a $500,000.00 

loan for this fiscal year. This will provide the Port with enough funds to complete the 

engineering and design for the project. The Port and the DBW Commission would execute 

future loan documents as money from the State becomes available up to the total $7.1 

million project estimate which would be phased over the next two to three years. The 

project consists of improvements to three marinas and public access areas between Clay and 

Harrison streets. Some maintenance dredging will be required to dredge the West and 

Central basins to authorized depths. In the East Basin, a portion of the eastern shoreline 

will be excavated and reconfigured to accommodate new berths. Along the waterfront, 

public access areas will be expanded and improved with new paving and street furniture. 

January 4, 1994 5

Facilities for boaters, such as toilet and shower areas, will be increased. The initial Study 

concluded that the project could have potentially significant environmental impacts in the 

following areas: earth (Bay fill), water (Bay fill), animal life (Bay fill), population, and 

cultural resources. Additionally, the implementation of the project could have construction- 

related impacts, operations-related impacts, and cumulative impacts. No growth-inducing 

impacts were identified. The Port circulated the draft Initial Study/Negative Declaration 

for public review and comment during the period June 9, 1993-July 8, 1993. Of the 

approximately 600 Notices of Availability and 50 draft Initial Studies distributed during the 

public review period, four comment letters were received from the following agencies: City 

of Alameda; San Francisco Bay Conservation and Development Commission; State Lands 

Commission; and East Bay Municipal Utility District. The City of Alameda's letter focussed 

primarily on traffic and parking impacts of the project. The Port found that the mitigation 

measures of concern to the City of Alameda were "within the responsibility and jurisdiction 

of the City of Oakland...[which] have been or can and should be adopted by the City of 

Oakland. The letter from the San Francisco Bay Conservation and Development 

Commission requested a more-detailed clarification of project elements that fall within 

BCDC's jurisdiction. The Port prepared a summary of proposed project improvements 

within BCDC's two jurisdiction areas: Bay jurisdiction (below the Line of Highest Tidal 

Action); and within the 100' Shoreline Band. The Port's response to BCDC also clarified 

the need for maintenance dredging of the marina basins and indicated that possible disposal 

sites for dredged material include the Port of Oakland's Ninth Avenue Terminal and the 

Redwood Sanitary Landfill in Novato, CA. The Port also demonstrated how its proposal 

for live-aboard use at the Jack London Square marinas would be consistent with the Bay 

Plan. The letter from the State Lands Commission was also concerned with the question 

of jurisdiction, specifically in terms of the areas of the project site that will require 

maintenance dredging. The Port concluded that, for some areas of the Project site, it was 

possible to conclusively determine whether or not the State Lands Commission had 

January 4, 1994 6

authority. For other areas, the Port demonstrated that this authority was ambiguous. The 

Port recommended that the Pierhead Line of 19:13 serve as a "de facto" boundary line for 

purposes of dredging for the project, without prejudice to any position that the Port or State 

might take later about where the boundary is for any other purpose. The Port also 

expressed its position that the proposal for live-abroad use is in full conformance with 

BCDC regulations and "necessarily incidental to the accomplishment of some trust use of 

statewide public benefit." The East Bay Municipal Utility District's letter expressed concern 

over the adequacy of fireflow capacity as cumulative development occurs at Jack London 

Square. The Port responded that it completed pipeline improvements as part of the Jack 

London Square Master Plan - Phase I project and would consult with the City of Oakland 

Fire Department and EBMUD to determine whether additional capacity was needed to 

serve either the Project or future development at Jack London Square. It was 

recommended that the Board approve and adopt the Mitigated Negative Declaration/Initial 

Study for the Jack London Square Marina Project - Phase I; adopt the mitigation measures 

and find that the project will have no significant effect on the environmental because the 

mitigation measures will reduce potential significant impacts to a level of insignificance; and 

find that the Mitigation Negative Declaration reflects the independent judgement of the 

Board of Port Commissioners. The recommendation was approved on passage of 


Recommendation to Approve Amendment to Lease with 1310. Inc.. Radio Station 

KDIA was the subject of a memo to the Board from the Acting Director of Commercial 

Real Estate notifying the Board that 1310, Inc. presently occupies 300,564 square feet of 

water and land near the Bay Bridge toll plaza as a radio transmitter site for radio station 

KDIA-AM under an existing lease which expires January 31, 1994 and they have requested 

an extension of time. It was recommended that the Board approve an amendment to the 

lease to provide for a term of 7 years commencing in February 2, 1994 and expiring in 

January 31, 2001, at $.0062 per square foot per month. Rental adjustment will be assessed 

January 4, 1994 7

annually based on the percentage increase in the Consumer Price Index for the twelve 

month period immediately preceding the adjustment date. Insurance coverage will comply 

with current Port requirements and all utilities and maintenance will be the lessee's 

obligation including maintenance of the access road. The recommendation was approved 

on passage of an ordinance to print. 

Award of Contract, Gate Modifications, Charles P. Howard Terminal was the subject 

of a memo to the Board from the Deputy Executive Director notifying the Board of the one 

bid received and recommending award of the contract to Aztec Consultants dba Aztec 

Constructors, the bidder, at $718,000.00. The recommendation was approved on passage 

of Resolution No. 94007. 

Award of Contract. Demolition of Building E-405, Charles P. Howard Terminal was 

the subject of a memo to the Board from the Deputy Executive Director notifying the Board 

of the ten bids received and recommending award of the contract to Elon, Inc., the low 

bidder, at $98,000.00. The recommendation was approved on passage of Resolution No. 

94008. 

Supplemental Agreement with American President Lines was the subject of a memo 

to the Board from the Director of Maritime notifying the Board that Philippines, Micronesia 

& Orient Line is a secondary user at American President Lines' Terminal and operates a 

monthly service between Los Angeles, Oakland, Hawaii and ports in Micronesia, the 

Philippines and the Far East. PM and 0 has been approached by a major tropical fruit 

producer to handle part of the substantial volume that is currently moving all-water through 

the Panama Canal to the East Coast and from there overland to the Midwest. They have 

requested support from the Port and Eagle Marine Services (APL's terminal operation 

subsidiary) to attract this cargo through Oakland. The cargo would then move to Overland 

Common Points (OCP Territory) which is basically defined as points east of Denver, 

Colorado in the Port's marine terminal tariff. To accomplish the request, it was 

recommended that the Board amend the agreement which would then provide that in lieu 

January 4, 1994 - 8 -

of the published wharfage rates in the Port's marine terminal tariff, PM & 0 as a secondary 

use shipping line at the APL Terminal will be assessed 80% of such wharfage rates for 

shipments of Tropical Fruit, N.O.S. This reduction would only apply to OCP destinations 

as defined in Item 01225 of the tariff and would be subject to a minimum of 50 'IEU's per 

vessel. The proposed modification would expire concurrently with the expiration of the 

terminal services agreement between PM & 0 and Eagle Marine on April 30, 1996. The 

recommendation was approved on passage of Resolution No. 94009. 

Personnel Items contained in a memo to the Board from the Director of 

Human Resources recommended the appointment of Evelyn S. Guibone, as Senior Account 

Clerk, effective January 20, 1994, at $2,886 per month; Rebeca R. Simental, as Account 

Clerk, effective January 20, 1994, at $2,520 per month; and Mark J. O'Brien, as Principal 

Port Safety Administrator, effective January 17, 1994, at $5,442.00 per month. Also 

recommended was amendment of appointment for Gunnar W. Niemi, Port Programmer 

Analyst, from January 3, 1994; the creation of one additional position of Senior Account 

Clerk; request for leaves of absence for Peter Snow Cao, as Associate Port Transportation 

Planner, for personal reasons, for 4 working days; and for Dennis D. Jefferson, as 

Equipment Systems Engineer, for personal reasons, for 237 working days. The 

recommendation was approved on passage of Resolution No. 94010 for appointments; 

Resolution No. 94011 for amendment appointment date; Resolution No. 94012 for leaves 

of absence; and on an ordinance passed to print for creation of position. 

Anthony F. Cerasuolo, Consultant Services was the subject of a memo to the Board 

from the Director of Human Resources notifying the Board of the professional services 

contract with Anthony F. Cerasuolo for Safety Consultant Services which is extended to 

January 1, 1994. Mr. Cerasuolo has provided the Port safety expertise, new safety job 

descriptions, created and recruited for the positions of Safety Administrator and Principal 

Safety Administrator. This 90 day period will allow for a smooth transition of the new 

Principal Safety Administrator, Mr. Mark O'Brien and provide the necessary expertise at the 

January 4, 1994 - 9 -

CAL/OSHA for the proposed hearings. It was recommended that the Board authorize an 

extension of the contract to expire March 31, 1994, at an hourly rate of $65 and new fees 

not to exceed $30,000.00. The recommendation was approved on passage of Resolution No. 

94013. 

Beech Street - Consultant Services was the subject of a memo to the Board from the 

Director of Human Resources notifying the Board that the Port is self-insured for workers' 

compensation in the State of California. As part of the overall cost containment program, 

a medical management and medical bill review service is advised. It was recommended that 

the Board authorize the preparation and execution of a contract with Beech Street for 

workers' compensation cost containment services for fees not to exceed $50,000.00 per year. 

The firm will review medical bills and reduce them to acceptable fees allowed by the State 

of California. It was estimated that this will save the Port approximately $100,000.00 per 

year. Additionally, Beech Street will provide Utilization Review and Case Management; 

Preferred Provider Organization - physicians & hospitals that offer a reduced fee structure 

than State fee schedule; and a concentrated managed care approach to workers' 

compensation to reduce medical costs. The recommendation was approved on passage of 


Coleen Olson-Bell, Disaster Planning Consultant was the subject of a memo to the 

Board from the Director of Equal Opportunity notifying the Board of the contracting with 

Ms. Coleen Olson-Bell to provide Disaster Planning Consultant Services for the Port. 

Services were authorized not to exceed $29,999 which includes payments made under a 

Professional Services Purchase Order. Ms. Bell is working with the members of the Ports 

Emergency Management Team and teams assigned within the Port's Divisions to draft 

individual Division Emergency Procedure Manuals and the project is more extensive than 

anticipated. It was recommended that the Board extend Ms. Coleen Olson-Bell's Consultant 

Agreement to provide additional disaster preparedness services not to exceed $59,999 in 

fiscal year 1993. The recommendation was approved on passage of Resolution No. 94015. 


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Travel Authorization was the subject of a memo to the Board from the Secretary of 

the Board recommended the travel of Cheryl Perry-League, Director of Equal Opportunity, 

to Johannesburg, South Africa on or about the period January 25 to 31, 1994 to participate 

as a panelist at a conference sponsored by the Tertiary Education Program Support Project. 

The cost of the trip will be provided by the sponsor and only incidental expenses will be an 

obligation of the Port. The recommendation was approved on passage of Resolution No. 

94016. 

Award of Contract, Furnishing Service and Maintenance for Various Elevators and 

Escalators at Oakland Airport and Jack London Square was the subject of a memo to the 

Board from the Deputy Executive Director notifyi ng the Board of the four bids received and 

recommending award of the contract to Montgomery Elevator Co., the low bidder, at 

$124,200.00. The recommendation was approved on passage of Resolution No. 94017. 

vote: 

The following resolutions were introduced and passed separately by the following 

Ayes: Commissioners Broussard, Cole, Kramer, Loh, Vohs and 

Noes: None 

President Lockhart - 6 

Absent: Commissioner Ortiz - 1 

"RESOLUTIONS NO. 94001 

FINDING AND DE ERMINING THAT A PROPOSED AGREEMENT WITH 

ASSET PROTECTION CONSULTANTS, INC. DOING BUSINESS AS SECURITY 

BY DESIGN FOR AIRPORT SECURITY CONSULTING SERVICES 

CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES AND 

WAIVING COMPETITIVE BIDDING; AND AUTHORIZING EXECUTION OF 

SAID AGREEMENT." 

"RESOLUTION NO. 94002 

APPROVING AND AUTHORIZING EXECUTION OF CERTAIN LICENSE 

AND CONCESSION AGREEMENT WITH JOE LUCERO DBA JOE LUCERO 

PRINTING." 


- 11 -


APPROVING AND AUTHORIZING EXECUTION OF THAT CERTAIN 

LICENSE AND CONCESSION AGREEMENT WITH ANDY FRAIN SERVICES, 

INC." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN SECOND 

SUPPLEMENTAL AGREEMENTS WITH ALAMO RENTAL A CAR, INC., AVIS 

RENT A CAR SYSTEM, INC., BUDGET RENT A CAR SYSTEMS, INC., 

DOLLAR SYSTEMS, INC., THE HERTZ CORPORATION, AND NATIONAL 

CAR RENTAL SYSTEMS, INC." 


APPROVING AND AUTHORIZING THE EXECUTION OF FIRST 

SUPPLEMENTAL AGREEMENT WITH OAKLAND FUEL FACILIT LES 

CORPORATION." 


APPROVING AND ADOPTING MITIGATED NEGATIVE DECLARATION 

AND RELATED MITIGATION REPORTING OR MONITORING PROGRAM 

THE JACK LONDON SQUARE MARINA PROJECT: PHASE I„ AND FINDING 

NO SIGNIFICANT EFFECT ON THE ENVIRONMENT BECAUSE OF 

REVISIONS IN THE PROJECT PLANS AND PROPOSALS AND THAT THE 

MITIGATED NEGATIVE DECLARATION REPRESENTS THE 

INDEPENDENT JUDGEMENT OF THE BOARD AS LEAD AGENCY." 


AWARDING CONTRACT TO AZTEC EC CONSULTANTS, DBA AZTEC 

CONSTRUCTORS, FOR GATE MODIFICATIONS, CHARLES P. HOWARD 

TERMINAL, OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF BONDS 

TO BE PROVIDED IN CONNECTION THEREWITH." 


AWARDING CONTACT TO ELON, INC., FOR DEMOLITION OF BUILDING 

E-405, CHARLES P. HOWARD TERMINAL, OAKLAND, CALIFORNIA, BID 

ALI ERNA I E #1; FIXING THE AMOUNT OF BONDS TO BE PROVIDED IN 

CONNECTION THEREWITH; REJECTING ALL OTHER BIDS; AND 

DIRECTING RETURN OF BID BONDS TO BIDDERS." 


AUTHORIZING EXECUTION OF TENTH SUPPLEMENTAL AGREEMENT 

WITH AMERICAN PRESIDENT LINES, LTD." 


CONCERNING CERTAIN APPOINTMENTS." 

January 4, 1994 - 12 -


AMENDING PORT RESOLUTION NO. 93570 CONCERNING CERTAIN 

APPOINTMENTS." 


CONCERNING CERTAIN LEAVES OF ABSENCE." 


FINDING AND DETERMINING ERMINING THAT A PROPOSED SECOND 

SUPPLEMENTAL AGREEMENT WITH ANTHONY F. CERASUOLO, FOR 

SAFETY CONSULTING SERVICES CONSTITU1ES PROFESSIONAL OR 

SPECIALIZED SERVICES; AND AUTHORIZING EXECUTION OF SAID 

SECOND SUPPLEMENTAL AGREEMENT." 


FINDING AND DETERMINING THAT A PROPOSED AGREEMENT WITH 

BEECH STREET FOR WORKERS" COMPENSATION CONSULTING 

SERVICES CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES 

AND WAIVING COMPETITIVE BIDDING; AND AUTHORIZING 

EXECUTION OF SAID AGREEMENT." 


FINDING AND DE I ERMINING THAT A PROPOSED FIRST SUPPLEMENTAL 

AGREEMENT WITH COLEEN OLSON-BELL, FOR DISASTER PLANNING 

CONSULTING SERVICES CONSTITUTES PROFESSIONAL OR SPECIALIZED 

SERVICES; AND AUTHORIZING EXECUTION OF SAID FIRST 

SUPPLEMENTAL AGREEMENT." 


CONCERNING CERTAIN TRAVEL" 


AWARDING CONTRACT TO MONTGOMERY ELEVATOR COMPANY, FOR 

FURNISHING SERVICE AND MAINTENANCE FOR VARIOUS ELEVATORS 

AND ESCALATORS AT BUILDING M-102 AND M-130, SOUTH FIELD, 

METROPOLITAN 

ROPOLITAN OAKLAND INTERNATIONAL AIRPORT AND BUILDING 

F-111, F-113 AND F-601, JACK LONDON SQUARE, OAKLAND, CALIFORNIA, 

FOR THE PERIOD COMMENCING JANUARY 1, 1994 AND ENDING 

DECEMBER 31, 1996; FIXING THE AMOUNT OF BONDS TO BE PROVIDED 

IN CONNECTION THEREWITH; REJECTING ALL OTHER BIDS; AND 



AMENDING PORT RESOLUTION NO. 93483 APPOINTING DIRECTOR OF 

MARITIME ACTIVITIES." 

January 4, 1994 13 -

Port Ordinance No. 3189 being, "AN ORDINANCE AMENDING PORT 

ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE OF PAULI IIES AT 

1VIEIROPOLITAN OAKLAND INTERNATIONAL AIRPORT', was read a second time 

and passed by the following vote: 

Ayes: Commissioners Broussard, Cole, Kramer, Loh, 

Noes: None 

Vohs and President Lockhart - 6 


Port Ordinance No. being , "AN ORDINANCE AMENDING SECTION 10.2 

OF PORT ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE OF 

FACILITIES AT ME I ROPOLITAN OAKLAND INTERNATIONAL AIRPORT," and 

Port Ordinance No. being, "AN ORDINANCE APPROVING AND AUTHORIZING 

THE EXECUTION OF A SUPPLEMENTAL AGREEMENT TO LEASE WITH 1310, 

INC. AND DIRECTING RECORDATION THEREOF," and Port Ordinance No. 

being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 CREATING TWO 

ADDITIONAL IONAL POSITIONS OF SENIOR ACCOUNT CLERK," and Port Ordinance No. 

being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 CREATING 

SALARY SCHEDULE NO. 100.05X AND FIXING THE COMPENSATION OF 

EMPLOYEES IN THE PORT DEPARTMENT IN THE AIRPORT OPERATIONS 

SUPERVISORY UNIT," were read a first time and passed to print by the following vote: 


Noes: None 



January 4, 1994 - 14 -

At the hour of 3:45 p.m., the Board entered into closed session as previously 

announced by President Lockhart and reconvened in open session at the hour of 5:05 p.m 

at which time the meeting was adjourned on a motion duly made and seconded. 


Secretary of the Board 

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The meeting, formal portion, was held on Tuesday, January 18, 1994, at the hour of 


President Lockhart presiding appropriate notice having been given and posted. An informal 

portion was held during the period from 3:20 p.m. to 3:40 p.m. during which time the Board 

received a status report from Lt. Col. Lyn Cardoza, Chief of Engineering, on the dredging 

schedule. 

Commissioners present: Broussard, Cole, Loh, Ortiz, Vohs and 


Commissioners absent: Commissioner Kramer - 1 

Also present were the Executive Director; Deputy Executive Director; Port Attorney; 

Director of Human Resources; Director of Aviation; Acting Director of Commercial Real 

Estate, Dennis White; Director of Maritime; Director of Finance; Director of Equal 

Opportunity; Chief Engineer; Chief of Planning; and Secretary of the Board. 

The minutes of the regular meeting of August 3, 1993; adjourned regular meeting of 

August 10, 1993; and the regular meeting of August 17, 1993 were approved as submitted 

and ordered filed. 


conclusion of the open session for the purpose of discussing pending litigation as provided 

for under Government Code Section 54956.9 (b) and (c) and personnel matters as provided 


Commissioner Vohs, Chair of the Audit and Finance Committee, informed the Board 

that the committee had met and reviewed their current agenda. 

Commissioner Ortiz, Chair of the Commercial Real Estate Co=litee, informed the 

Board that the committee had met and reviewed their current agenda.

Commissioner Loh, Chair of the Customer Relations & Employment Development 

Committee, informed the Board that the committee had met and reviewed their current 

agenda. 

Commissioner Vohs, Chair of the Maritime Committee, infoi ied the Board that the 

committee had met and reviewed their current agenda. 

Approval of Change Order for Construction of Airfield Signage was the subject of 

a memo to the Board from the Deputy Executive Director notifying the Board of the 

contract with Rosendin Electric, Inc. for construction of airfield signage, at a lump sum and 

unit prices items totalling $693,800.00. After the start of construction there appeared to be 

inconsistencies in the FAA Guidelines. The newest circular on wind loads on signs requires 

that they withstand a jet blast of 200 mph, increased from the old standard of 100 mph. 

That is not consistent with another requirement which states that sign posts must have 

frangible (breakaway) couplings, which help to ensure that the signs will give way before 

ripping the bottom out of an aircraft which has strayed off a runway or taxiway. In 

consideration of the relative costs of replacing a blown-down sign or repairing a severely 

damaged aircraft, the decision was made that protection of the aircraft was the controlling 

factor, and the signs and foundations were designed to that criterion. After further review, 

the FAA determined that the jet blast requirement was the controlling factor even though 

they recognize the potential for damage to aircraft, and it became necessary to redesign the 

sign foundations to withstand the greater force and to solicit a quotation from the contractor 

to install the larger foundations. It was recommended that the Board authorize a change 

order in the fixed amount of $106,500.00 and grant a time extension of 45 calendar days to 

perform the work. The recommendation was approved on passage of Resolution No. 94019. 

Approval for Submittal of AIP-16 Preapulication to Federal Aviation Administration 

(FAA) was the subject of a memo to the Board from the Deputy Executive Director 

recommending approval to submit the preapplication for $3 million in entitlement funds to 

be used toward the construction phase of the new aircraft parking pavement project on 


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North Airport. The total amount of the project is $4 million with the Port's share of 

$1 million which shall be funded through the Passenger Facility Charges Program. The 


Approval of New License and Concession. Agreements with Existing Tenant - 

KaiserAir, Inc. was the subject of a memo to the Board from the Director of Aviation 

recommending approval to renew two agreements with KaiserAir, Inc. for 28,426 square feet 

of hangar space and 70,280 square feet of apron space located in and adjacent to Bays B 

& D in Building L-710 on the North Airport, at $9,618.98 per month, effective March 1, 

1993; and a second agreement with KaiserAir, Inc. for 1,281 square feet of office space, 

12,648 square feet of hangar space, 3,230 square feet of shop space, a total of 1,615 square 

feet of paved and unpaved land, and 59,017 square feet of apron area, located in and 

adjacent to Building L-310 on the North Airport, at $7,235.64 per month, effective April 1, 

1993. The recommendation was approved on passage of Resolution No. 94021. 

Approval of New License and Concession Agreement - Linda I. Kallsen dba Link 

Services was the subject of a memo to the Board from the Director of Aviation 

recommending approval of a new agreement with Linda I. Kallsen dba Link Services for 

exclusive use of 501 square feet of office space and 220 square feet of paved parking and 

non-exclusive use of 252 square feet of common entrance/reception area, all located in and 

adjacent to Building L-710, North Airport, at $446.19 per month, effective January 1, 1994. 


Approval of Agreement to Renew License and Concession Agreement for the Term 

of One Year or Less - Robert F. Brown was the subject of a memo to the Board from the 

Director of Aviation recommending approval of a new agreement with Robert F. Brown for 

461 acres or 20,081,160 square feet of land located in American Canyon used for cattle 

grazing, at $1,010.04 per year, effective June 1, 1993. The recommendation was approved 

on passage of Resolution No. 94023. 

January 18, 1994 3

Approval to Disiense with Formal Bids for Boiler and Pine Insulation Removal and 

Asbestos Abatement at Airport Terminal Buildings was the subject of a memo to the Board 

from the Deputy Executive Director notifying the Board that the Port has been cited by 

CAL OSHA for failure to monitor workers for possible exposure to asbestos in certain 

utility areas of the airport terminal buildings and connecting tunnels. A review has 

determined that it is more prudent to remove the asbestos and thereby any possible 

exposure to it. The work consists, in general, of removal of asbestos insulating material 

from heating, ventilating, and air conditioning systems, in the South Airport terminal 

buildings M-101, M-102, M-103, M-104, and the utility tunnel. The work further includes 

lawful disposal of the removed material and replacement of the removed material with new 

insulating materials. As it is desirable to remove the asbestos in as timely a manner as 

possible, it was recommended that the Board find it to be in the best interests of the Port 

to dispense with formal bidding procedures and accomplish the work based on the receipt 

of informal quotations. The project is categorically exempt and does not require the 

preparation of an environmental document. The recommendation was approved on passage 


Recommendation to Approve Ordinance Approving and Authorizing Execution of 

Passenger Depot Lease with National Railroad Passenger Corporation was the subject of 

a memo to the Board from the Acting Director of Commercial Real Estate notifying the 

Board of the previous approval of the Mitigated Negative Declaration on the Amtrak 

project, the Fund Transfer Agreement and subsequent amendments between the 

Department of Transportation and the Port to fund the station construction. The project 

is 100% financed by the State of California with additional sources of federal funds used for 

track work, under agreements between the State and Southern Pacific Transportation 

Company. The station has now been designed and revised bids have been received. The 

National Railroad Passenger Corporation has also now executed a lease with the Port. The 

premises will consist of a two story building of approximately 15,000 square feet designed 


- 4 -

as a railroad depot which will be constructed by the Port on Port owned land on Second 

Street between Alice and Jackson. The premises will consist of administrative and ticketing 

offices, baggage room, crew facility, depot and public areas including rest rooms. In 

addition, SPTC will construct track work necessary for the station operation. The Port will 

also construct a parking lot and train platform, along with a pedestrian bridge across 

Embarcadero. The term will be for 66 years and will commence upon receipt of a 

certificate of occupancy for the station building and completion of the required track work. 

The rent paid by Amtrak will be $1.00 per year. The lessee has the right to sublease or 

license the space for food and beverage operations to service the passengers and retain the 

revenue. The lessee will be responsible for the maintenance, repair and janitorial service 

for the premises, including baggage area, HVAC, plumbing and electrical systems of the 

building and platforms. The lessee shall provide fire insurance, earthquake and floor 

insurance for the full replacement value of the building at its own cost and expense. The 

lessee shall also indemnify the Port of Oakland for public liability and claims. It was 

recommended that the Board approve and authorize execution of the lease. The 

recommendation was approved on passage of an ordinance to print. 

Recommended Approval of New License and Concession Agreement - Kwan C. Yam 

was the subject of a memo to the Board from the Acting Director of Commercial Real 

Estate recommending approval of a new agreement with Kwan C. Yam dba, Seabreeze Cafe 

for 1,170 square feet of restaurant space at 280 6th Avenue, Building H-113, at $900.00 per 

month, effective November 1, 1993. The recommendation was approved on passage of 


Authorization to Execute MASTER Agreement No. 6057 and Program Supplement 

No. 001 with Caltrans for Intermodal Container Transfer Facility was the subject of a 

memo to the Board from the Deputy Executive Director notifying the Board of the study 

for the development of an Intermodal Container Transfer Facility for three railroads serving 

the Port of Oakland, to be constructed within approximately 150 acres of land in the 

January 18, 1994 - 5

Southern Pacific Railroad's West Oakland Rail Yard. The total project cost is estimated 

at $38 million, which includes $3 million for preliminary engineering and environmental 

documents. On September 8, 1992, the Board committed to the following: Engineering and 

environmental documents will be completed by the Port; $600,000.00, or 11.5% of the total 

engineering and environmental documents cost (whichever is less), in local matching funds 

will be provided by the Port of Oakland; and the Port understands that the Surface 

Transportation Program funding is fixed at $2.4 million for preliminary engineering and 

environmental documents of a $38 million project, and therefore any costs increases for 

engineering and environmental documents cannot be expected to be funded with Surface 

Transportation funds. A Master Agreement No. 6057 and Program Supplement No. 001 

have been drafted which provides that Caltrans will fund the preliminary engineering for the 

Facility and it was recommended that the Board approve and authorize the execution of the 

Master Agreement and the Program Supplement. The recommendation was approved on 

passage of Resolution No. 94026. 

Second Supplemental Agreement with Mitsui O.S.K. Lines at Berth 30 was the 

subject of a memo to the Board from the Director of Maritime notifying the Board that 

Mitsui O.S.K. Lines has a Nonexclusive Preferential Assignment for the new Berth 30 

Terminal. The agreement provides the term will commence upon the first day of the 

calendar month immediately following the "completion date" of the new Berth 30 facility. 

While the Agreement grants MOL the right to enter and use the Assigned Premises for the 

purpose of receiving and assembling cargo 15 days before MOL's expected beneficial 

occupancy, there is no provision for conducting vessel operations before the term 

commencement relating to the "completion date." MOL's vessel, the Alligator Glory, is 

scheduled to arrive at the new Berth 30 facility on or about January 20, 1994. Although the 

premises will be operationally ready for the Alligator Glory, minor delays in completion of 

construction also delayed the Port's ability to give the required notification stating the 

premises could be beneficially occupied. It was recommended that the Board modify the 

January 18, 1994 - 6 -

Agreement so that the term will commence with arrival of the Alligator Glory, rather than 

on the first day of the month following the completion notice. The agreed upon land value 

at commencement of the Agreement is set at $10.00 per square foot and $5.00 per square 

foot for the water area. Based upon these values land and water area rental commencing 

this month with arrival of the Alligator Glory will equate to $4,140.63 per day. The 



Human Resources recommended the appointment of Claven L. Payne, as Semiskilled 

Laborer, effective February 7, 1994, at $3,082.00 per month. Also recommended was the 

amendments of salary appointments in accordance with the Memorandum of Understanding 

between the Port of Oakland and the International Brotherhood of Electrical Workers for 

the following Airport Operations Supervisors: Larry D. Berlin, Kathleen Ann Bertram., 

Senator M. Brunson, Peter G. Martinez, Stanley F. Kopacz, Isaac Saenz, Gus Stafford, 

James E. Truckel, Albert C. Vieth, Robert L. Welch, and Robert L. Winn, to $4,720.00 per 

month. The recommendations were approved on passage of Resolution No. 94028 for 

appointment and Resolution No. 94029 for salary appointments. 

Approval of Port Oakland Americans with Disabilities Act Transition Plan was the 

subject of a memo to the Board from the Director of Equal Opportunity notifying the Board 

of the enactment of the Americans with Disabilities Act which provides a clear and 

comprehensive mandate for elimination of discrimination against individuals with disabilities. 

Federal regulations implementing the ADA require a public entity to prepare a Transition 

Plan if the public entity must make structural changes to its facilities to make them 

accessible to disabled persons. Since structural modifications are necessary to make Port 

facilities accessible, Port staff prepared a Transition Plan. The Transition Plan provides 

background information on the Port of Oakland's programs and facilities. The Transition 

Plan includes a description of the programs and facilities and a list of projects to remove 

architectural barriers in order to make Port programs and facilities accessible to disabled 

January 18, 1994 - 7 -

persons. An essential component of the development of the Transition Plan is ensuring 

community input of the draft prior to its completion and the Port held a duly noticed public 

hearing requesting comment on a previously circulated draft Transition Plan. As a result 

of the hearing, the Office of Equal Opportunity developed the ADA Task Force comprised 

of interested persons including members of the disabled community that participated in both 

the hearing and the walk-throughs of the Metropolitan Oakland International Airport and 

the Jack London Square area. The ADA Task Force provided comments on the draft 

Transition Plan that have been incorporated into the final Transition Plan. It was 

recommended that the Board approve the Transition Plan. The recommendation was 


vote: 


Ayes: Commissioners Broussard, Cole, Loh, Ortiz, Vohs 

Noes: None 


Absent: Commissioner Kramer - 1 


APPROVING ISSUANCE OF CHANGE ORDER FOR CONS! RUCTION OF 

AIRFIELD SIGNAGE, METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT, OAKLAND, CALIFORNIA, A.LP. 3-06-0170-04." 


AUTHORIZING THE EXECUTIVE DIRECTOR TO FILE PREAPPLICATION 

WITH THE FEDERAL AVIATION ADMINISTRATION UNDER THE 

AIRPORT IMPROVEMENT PROGRAM, MP-16." 



AND CONCESSION AGREEMENT ("L&C") WITH KAISERAIR, INC." 



AND CONCESSION AGREEMENT ("L&C") WITH LINDA I. KALLSEN DBA 

LINK SERVICES." 

January 18, 1994 8


APPROVING AND AUTHORIZING THE EXECUTION OF CERTAIN 

AGREEMENT TO RENEW LICENSE AND CONCESSION AGREEMENT 

("RENEWAL") WITH ROBERT F. BROWN." 

"RESOLUTION ION NO. 94024 

FINDING AND DETERMINING THAT IT IS IN THE BEST INTEREST OF 

THE PORT TO CONTRACT FOR BOILER AND PILE INSULATION 

REMOVAL AND ASBESTOS ABATEMENT AT AIRPORT 'TERMINAL 

BUILDINGS, WITHOUT COMPETITIVE BIDDING AND AUTHORIZING THE 

EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT FOR SUCH WORK 

BASED ON RECEIPT OF INFORMAL PROPOSALS." 

"RESOLU I ION NO. 94025 


AND CONCESSION AGREEMENT ('"L &C") WITH KWAN C. YAM, AN 

INDIVIDUAL, DBA SEABREEZE CAFE." 


APPROVING AND AUTHORIZING EXECUTION OF LOCAL AGENCY- 

STATE AGREEMENT FOR FEDERAL-AID PROJECT (MASTER ER 

AGREEMENT NO. 04-6057) AND SUPPLEMENTAL LOCAL AGENCY STA I E 

AGREEMENT (PROGRAM SUPPLEMENT NO. 001)." 


AUTHORIZING EXECUTION OF SECOND SUPPLEMENTAL AGREEMENT 

WITH TRANS PACIFIC CONTAINER SERVICE CORPORATION." 


APPOINTING CLAVEN L. PAYNE TO THE POSITION OF SEMISKILLED 

LABORER." 


ASSIGNING CERTAIN EMPLOYEES TO APPROPRIATE RAPES WITHIN 

NEW SALARY SCHEDULE." 


APPROVING THE PORT OF OAKLAND'S TRANSITION PLAN PREPARED 

PURSUANT TO THE AMERICANS WITH DISABILITIES ACT OF 1990." 

Port Ordinance No. 3188 being, "AN ORDINANCE APPROVING AND 

AUTHORIZING THE EXECUTION OF A LICENSE AND CONCESSION 

AGREEMENT WITH AIRBORNE FREIGHT CORPORATION ION AND DIRECTING 

January 18, 1994 - 9 -

RECORDATION THEREOF”, Port Ordinance No. 3190 being , "AN ORDINANCE 

AMENDING SECTION 10.2 OF PORT ORDINANCE NO. 1149 RELATING TO 

CHARGES FOR USE OF FACILITIES AT METROPOLITAN OAKLAND 

IN I ERNATIONAL AIRPORT," and Port Ordinance No. 3191 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING THE EXECUTION OF A SUPPLEMENTAL 

AGREEMENT TO LEASE WITH 1310, INC. AND DIRECTING RECORDATION 

THEREOF," and Port Ordinance No. 3192 being, "AN ORDINANCE AMENDING PORT 

ORDINANCE NO. 867 CREATING TWO ADDITIONAL POSITIONS OF SENIOR 

ACCOUNT CLERK," and Port Ordinance No. 3193 being, "AN ORDINANCE 

AMENDING PORT ORDINANCE NO. 867 CREATING SALARY SCHEDULE NO. 

100.05X AND FIXING THE COMPENSATION OF EMPLOYEES IN THE PORT 

DEPARTMENT IN THE AIRPORT OPERATIONS SUPERVISORY UNIT," 

were read a second time and passed by the following vote: 


Noes: None 



Port Ordinance No. being, "AN ORDINANCE APPROVING AND 

AUTHORIZING THE EXECUTION OF A LEASE WITH NATIONAL RAILROAD 

PASSENGER CORPORATION AND DIRECTING RECORDATION THEREOF," was 

read a first time and passed to print by the following vote: 

Ayes: Commissioners Broussard, Cole, Loh, Ortiz, Vohs and 

Noes: None 



At the hour of 4:45 p.m., the Board enter into executive session as previously 

announced by President Lockhart and reconvened in open session at the hour of 5:55 p.m. 

January 18, 1994 - 10 -

vote: 



Noes: None 




APPOINTING DIRECTOR OF COMMERCIAL REAL ESTAI h." 


seconded. 

AUTHORIZING THE EXECUTION OF SE'ITLEMENT AGREEMENT AND 

MUTUAL RELEASE WITH KEITH QUAN." 

At the hour of 6:00 p.m. the meeting was adjourned on a motion duly made and 



- 11 -




The meeting, formal portion, was held on. Tuesday, February 1, 1994, at the hour of 


Vice President Broussard presiding appropriate notice having been given and posted. An 

informal portion was held during the period from 3:00 p.m. to 3:15 p.m. during which time 

the Board received a briefing on the recent amendments to the Brown Act. 

Commissioners present: Kramer, Loh, Vohs and 

First Vice President Broussard - 4 

Commissioners absent: Commissioners Cole, Ortiz, and President Lockhart - 3 


Director of Aviation; Director of Human Resources; Director of Commercial Real Estate; 

Senior Commercial Representative; Director of Maritime; Director of Strategic and Policy 

Planning; Chief Engineer; Chief of Planning; Director of Finance; Director of Governmental 

Affairs; Director of Public Affairs; and Secretary of the Board. 

The minutes of the regular meeting of September 7, 1993 were approved as 

submitted and ordered filed. 

Real Estate. 

Mr. John Aguilar was introduced to the Board as the new Director of Commercial 

Vice President Broussard informed the Board that he would not call for a closed 

session at the meeting. 

Vice President Broussard, Chair of the Aviation Committee, informed the Board that 


Commissioner Kramer, Chair of the Human. Resources Committee, informed the 

Board that the committee had met and reviewed their current agenda. 

Second Supplemental Agreement with P&I) Aviation for 2002 Airport Development 

Program Statement of Purpose and Needs was the subject of a memo to the Board from the

Deputy Executive Director notifying the Board that the Board previously authorized the 

preparation and execution of an agreement for professional services with P&D Aviation for 

aviation planning services to prepare the "2002 Airport Development Program". Specifically 

included was direction to develop a Statement of Purpose of Needs which would provide the 

background and justification for the projects to be evaluated in the requisite environmental 

assessments. On June 1, 1993, the Board authorized preparation and execution of a 

Supplemental Agreement for additional consultant work, based on Steering Committee 

decisions to expand P&D's technical analysis so as to update aviation forecasts and prepare 

extra analysis for purposes of estimating projected noise levels. The current authorized 

maximum is $259,600.00. On December 8-9, 1993, the guiding Steering Committee held a 

detailed "Strategy Session" with the FAA (the Port's co-sponsor) and consulting attorneys, 

to go over the entire status, approach, and legal/environmental strategy associated with 

preparing and presenting the draft EIR/EIS. One of the major conclusions of the strategy 

session was that the Port needs to define more alternatives to the 2002 ADP without which 

the EIR/EIS is susceptible to challenge. The FAA and the attorneys suggested that the 

Port show alternatives to the project which use the airport predominantly for cargo 

operations and/or predominantly for passenger service. It is desirable to have P&D define 

the proposed alternatives. In addition to the specific tasks associated with developing 

alternatives, P&D would coordinate its work with the Steering Committee, other Port staff, 

other EIR/EIS consultants, legal consultants, etc. Also P&D will be needed to assist Port 

staff and EIR/EIS consultants in the period when the draft EIR/EIS is available for public 

review and comment, by providing additional technical support and analysis to the Steering 

Committee in responding to public comment. An agreement with P&D has been negotiated 

for the additional work which includes defining additional Air Cargo/Air Passenger 

Dominant Alternatives; redrafting the technical documents to reflect work to date; 

projecting coordination; and responsing to comments. The firm will be compensated at 

agreed billing rates up to a maximum compensation of $96,000.00 for a total maximum 

February 1, 1994 - 2 -

compensation of $355,600.00. It was recommended that the Board authorize the Second 

Supplemental Agreement providing for the additional work. The recommendation was 


Approval of Third Supplemental Agreement with ESA, Inc. for Preparation of 

Environmental Documentation for the 2002 Airport Development Program EIR/EIS was 


that in March, 1988, the Board authorized the execution of an agreement with 

Environmental Science Associates, Inc. for preparation of an EIR/EIS for the Oakland 

Airport Master Plan Update. Since that time, the project has been substantially changed 

to the 2002 Airport Development Program, and at the request of the FAA, also extensively 

revised to incorporate the evaluation of the Airport Roadway Project. Two supplemental 

agreements have been negotiated with ESA to upgrade the scope of work and increase the 

compensation in order to perform consultant services in support of this revised plan. The 

current compensation for ESA as authorized by existing agreements is not-to-exceed 

maximum of $855,000.00. In early 1993, the Port instituted an Airport Policy Steering 

Committee of in-house managerial staff, chaired by the Director of Aviation, to establish 

the policies and strategies of the 2002 ADP, to provide direction to the consultants and to 

review various work products. One of the primary goals of the Committee is to ensure legal 

adequacy of CEQA/NEPA procedures and documentation is support of the 2002 ADP. As 

a result of these meetings, revised direction and new tasks were identified for the 

consultants in order to provide consistency in documentation and to ensure legal adequacy. 

The most demanding of these tasks were the incorporation of the Airport Roadway EIR (a 

separate study up until Fall, 1993) into the 2002 ADP EIR/EIS; the revision and correction 

of many traffic analysis inconsistencies and land use and employment projections associated 

with the Congestion Management Agency's model and Harbor Bay Isle Business Park 

growth; other scope additions, as a result of meetings and correspondence with the FAA and 

Port expert and legal counsel; and under direction from FAA/counsel, revisions to the 

February 1, 1994 - 3 -

number and type of alternatives for impact analysis.. The Committee agrees that the 

participation of the consultants is essential in developing technical solutions and 

understanding policy objectives and that this effort will reduce the number and complexity 

of issues to arise after the Draft EIR/EIS is released for public review. It was 

recommended that the Board authorize the preparation and execution of the Third 

Supplemental Agreement to cover the additional work. Based on a proposal submitted by 

ESA, the Port has negotiated an additional cost of $105,000.00 to complete the 2002 ADP 

through to the Final EIR/EIS. Compensation for ESA's services will be paid at agreed 

rates on a time and materials basis for the time actually spent on the project with $40,000.00 

of additional work available at the discretion of the Executive Director. The 


Approval of New License and Concession Agreement - Ziaullah Arghandiwal was the 

subject of a memo to the Board from the Director of Aviation recommended approval of 

a new agreement with Ziaullah Arghandiwal for the purpose of operating a catering cart on 

a 30 square foot area of the new taxi Vehicle Staging Area located adjacent to Building 

L-725, North Airport. Arghandiwal would be granted access to the Vehicle Staging Area 

for the limited purpose of selling food and nonalcoholic beverages from the catering cart 

to taxidrivers whose taxicabs are staged there. The License and Concession Agreement 

would be effective January 10, 1994 through December 31, 1994, at rental of $60.00. The 


Plans and Specifications to Furnish and Deliver Two New Constant Current 

Regulators, South Airport, MOIA was the subject of a memo to the Board from the Deputy 

Executive Director recommending their approval and authority to advertise for bids for the 

regulators. The new regulators are to replace existing regulators serving runway touch down 

zone lights and runway centerline lights. The existing regulators were installed more than 

32 years ago, and it is becoming increasingly difficult to keep them operational due to a lack 

of availability of spare parts. The project is categorically exempt and does not require the 

February 1, 1994 -4-.



Acceptance of Proposal for Construction of Passenger Rail Station Facility, Jack 

London Square was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board that the Board previously authorized the revised plans and 

specifications for the passenger rail station facility in order to reduce the project cost to 

within the amount of available funding from CalTrans. The Board also dispensed with 

formal bidding procedures and authorized the Executive Director to solicit proposals from 

eight contractors who submitted bids for the original project. Four proposals were received 

and it was recommended that the proposal from SHC/Mark Diversified be accepted at 

$6,244,000.00, and that all other proposals be rejected and the proposal securities returned 

to the respective proposers. The recommendation was approved on passage of Resolution 

No. 94037. 

Recommendation to Approve the Amendment of the Pavilion Block Lease to Expand 

Premises for ATM was the subject of a memo to the Board from the Acting Director of 

Commercial Real Estate notifying the Board of the lease with Oakland Portside associates 

for the ground lease of the "Pavilion Block". The supplement will provide for an additional 

280 square feet to be used for the operation of an Automatic Teller Machine. The Port will 

lease the space to OPA for $1.00 per year. OPA will include the increased area in its 

sublease to the ATM. The addition is categorically exempt and does not require the 

preparation of an environmental document. It was recommended that the Board approve 

the Fifth Supplemental Agreement. The recommendation was approved on passage of an 

ordinance to print. 

Recommendation to Approve the Amendment of the Gallagher Block Lease to 

Expand Leased Premises for Outside Eating was the subject of a memo to the Board from 

the Acting Director of Commercial Real Estate notifying the Board of the lease with 

Oakland Portside Associates for the ground lease of the "Gallagher Block", located on the 

February 1, 1994 

5 -

corner of Broadway and Water Street. The ground lease needs to be amended to include 

an additional 1,467 square feet along Broadway to be used for the operation of an outside 

eating area in connection with a restaurant that will be occupying approximately 6,000 

square feet inside the building. The Port will lease the space to OPA for $1.00 per year. 

It was recommended that the Board approve a Fifth Supplemental Agreement to the 

Gallagher Block Lease to provide for the additional space. This project falls within the 

previously approved 54,000 gross square foot restaurant "envelope", and no additional 

environmental effects are anticipated and the project is exempt from further California 

Environmental Quality Act review. The recommendation was approved on passage of an 


Award of Contract, Installation of Above Ground Fuel Storage Tank at Berth 67 was 


of the six bids received and recommending award of the contract to P.T.S. Environmental 

Service, the low bidder, at $48,106.00. The recommendation was approved on passage of 



Human Resources recommended the appointments of Phillip Granger, as Wharfinger, 

effective February 3, 1994, at $4,082 per month; Darrell B. Curry, as Airport Operations 

Supervisor, effective February 3, 1994, at $4,452 per month; Arnel A. Atienza, as Port 

Auditor II, effective February 22, 1994, at $3,395 per month; and Matthew Willingham, as 

Gardener II, effective February 3, 1994, at $2,469 per month. Also recommended were the 

creation of classifications and corresponding salary schedule assignments for the operational 

restructuring of the Aviation Marketing and Communications Department of the Aviation 

Division: one position of Aviation Port Field Representative at Salary Schedule 230; one 

position of Aviation Commercial Representative I at Salary Schedule 215; one position of 

Aviation Commercial Representative II at Salary Schedule 230; one position of Aviation 

Commercial Representative III at Salary Schedule 244; and one position of Aviation 


- 6 -.

Commercial Representative IV at Salary Schedule 262.50. Further recommended was 

amendments to salary schedules to include "Y" rates to accommodate recommendations for 

the appointments of incumbents in the Aviation Marketing Communications Department: 

Salary Schedule 230 "y" rate at $4,144; and Salary Schedule 262.50 "y" rate at $6,924. 

Additionally recommended were maternity leaves of absence of Rosa Isela Rico, Relief 

Telephone Operator, for 130 working days through July 15, 1994; and Sheila D. Nasario, 

Relief Telephone Operator, for 172 working days through July 1, 1994. The 

recommendations were approved on passage of Resolution No. 94039 for appointments; 

Resolution No. 94040 for leaves of absence; and on an ordinance passed to print for 

creation of positions and salary schedules. 

Contract for Consultant to Conduct a Salary/Classification Stud was the subject 

of a memo to the Board from the Director of Human Resources notifying the Board of the 

existing contract with The Mertens Group to perform a variety of salary and classification 

studies under the direction of the Director of Human. Resources. It was recommended that 

the Board approve the contract extension to complete the remaining salary and classification 

studies at a cost not to exceed $15,000.00. The recommendation was approved on passage 


vote: 


Ayes: Commissioners Kramer, Loh, Vohs 

Noes: None 

and First Vice President Broussard - 4 

Absent: Commissioners Cole, Ortiz and President Lockhart - 3 


FINDING AND DETERMINING THAT A PROPOSED SECOND 

SUPPLEMENTAL AGREEMENT WITH P & D AVIATION FOR AIRPORT 

PLANNING CONSULTING SERVICES CONSTITUTES PROFESSIONAL OR 


SECOND SUPPLEMENTAL AGREEMENT." 

February 1, 1994


FINDING AND DETERMINING THAT A PROPOSED THIRD 

SUPPLEMENTAL AGREEMENT WITH ENVIRONMENTAL SCIENCE 

ASSOCIATES, FOR ENVIRONMENT CONSULTING SERVICES 

CONSTITU'l'ES PROFESSIONAL OR SPECIALIZED SERVICES; AND 

AUTHORIZING EXECUTION OF SAID THIRD SUPPLEMENTAL 

AGREEMENT." 



AND CONCESSION AGREEMENT WITH ZIAULLAH ARGHANDIWAL." 


APPROVING PLANS AND SPECIFICATIONS TO FURNISH AND DELIVER 

TWO NEW AIRPORT RUNWAY CONSTANT CURRENT REGULATORS, 

METROPOLITAN OAKLAND INIERNATIONAL AIRPORT, OAKLAND, 

CALIFORNIA; AND CALLING FOR BIDS THEREFOR." 


AWARDING CONTRACT TO SHC/MARK DIVERSIFIED, A JOINT VENTURE 

OF SHARON HILL CORPORATION, AND MARK DIVERSIFIED, INC., FOR 

CONSTRUCTION OF PASSENGER RAIL STATION FACILITY, JACK 

LONDON SQUARE, OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF 

BONDS TO BE PROVIDED IN CONNECTION THEREWITH; REJECTING 

ALL OTHER BIDS; AND DIRECTING RETURN OF BID BONDS TO 

BIDDERS." 


AWARDING CON I RACT TO PLACER ENERGY SYS I EMS, INC. DBA P.T.S. 

ENVIRONMENTAL SERVICE, FOR INSTALLATION OF ABOVE GROUND 

FUEL STORAGE TANK, BERTH 67, OAKLAND, CALIFORNIA; FIXING THE 

AMOUNT OF BONDS TO BE PROVIDED IN CONNECTION THEREWITH; 

REJECTING ALL OTHER BIDS; AND DIRECTING RETURN OF BID BONDS 

TO BIDDERS." 






- 8



AGREEMENT WITH THE MERTENS GROUP, FOR PERSONNEL 

CONSULTING SERVICES CONSTI'TU' I ES PROFESSIONAL OR SPECIALIZED 




GRANTING WESTERN FEDERAL SAVINGS AND LOAN ASSOCIATION 

PERMISSION TO PERFORM CERTAIN WORK." 

"RESOLUIION NO. 94043 

GRANTING PARK-TILDEN CORPORATION PERMISSION TO PERFORM 

CERTAIN WORK." 


AUTHORIZING THE EXECUTION OF A FIFTH SUPPLEMENTAL AGREEMENT 

TO PAVILION BLOCK LEASE WITH OAKLAND PORTSIDE ASSOCIAThS AND 

DIRECTING RECORDA1 ION THEREOF," and Port Ordinance No. being, "AN 

ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF A FIFTH 

SUPPLEMENTAL AGREEMENT TO GALLAGHER BLOCK LEASE WITH 

OAKLAND PORTSIDE ASSOCIATES AND DIRECTING RECORDATION 

THEREOF," and Port Ordinance No. being, "AN ORDINANCE AMENDING 

SALARY SCHEDULES NOS. 230 AND 262.50 OF SECTION 1.03 OF PORT 

ORDINANCE NO. 867 AND CREATING NEW POSITIONS IN THE AVIATION 

MARKETING AND COMMUNICATIONS DEPARTMENT," were read a first time and 

passed to print by the following vote: 

Ayes: Commissioners Kramer, Loh, Vohs 

Noes: None 

and First Vice President Broussard - 4 

Absent: Commissioners Cole, Ortiz and President Lockhart - 3 


- 9 _

seconded. 



- 10 -




The meeting, formal portion, was held on Tuesday, February 15, 1994, at the hour 

of 3:37 p.m., in the office of the Board, second floor, 530 Water Street, Oakland, California, 

President Lockhart presiding, appropriate notice having been given and posted. An informal 


received a review of the recent Brown Act Amendments. 

Commissioners present: Broussard, Cole, Kramer, Loh, Ortiz, Vohs and 

Commissioners absent: None 



Assistant Port Attorney Thomas Clark; Director of Human Resources; Director of Policy 

and Strategic Planning; Director of Maritime; Director of Finance; Chief of Engineering; 

Chief of Planning; Director of Equal Opportunity; Media Relations Officer; and Secretary 

of the Board. 

The minutes of the regular meeting of September 21, 1993 were approved as 

submitted and ordered filed. 



for under Government Code Sections 54956.9 (b) and (c); and for personnel matters as 

provided for under Government Code Section 54957. 



Commissioner Ortiz, Chair of the Commercial Real Estate Committee, informed the 


Commissioner Kramer, Chair of the Human Resources Committee, informed the 


Commissioner Vohs, Chair of the Maritime Committee, informed the Board that the 


Proposed 1994 Airline Landing Fees and Tenant Terminal Space Rentals was the 

subject of a memo to the Board from the Director of Aviation notifying the Board that the 

rates and charges established each calendar year for the airlines operating at the Airport 

are based on actual results from the previous fiscal year. These rates and charges are then 

reviewed with airlines for concurrence. The airline have concurred and it was recommended 

that the Board establish the following rates and charges: Landing fees - $1.07 per thousand 

pounds of landing weight, Training Landing Fee - $.54, Minimum Charge per Landing - 

$15.88, Non-Based Carrier Landing Fee - $1.27; Terminal Space Rental, Type I - $72.89 

psf/pa, Type II - $65.60 psf/pa, Type III - $58.31 psf/pa, Type IV - $51.03 psf/pa; Loading 

Bridge Holdroom - $14,353.00 per month; Secondary Use, Loading Bridge Holdroom, Based 

Airline - $84.81 per operation; Secondary Use, Loading Bridge Holdroom, Non-Based 

Airline - $169.62 per operation; Baggage Claim Area, Non-Based Airline - $.77 per 

deplaning passenger; and Holdroom Security Fee, Non-Based Airline - $40.00 per enplaning 

operation. It was noted that the rates would provide recovery of 100% of the field and 

ramp cost center and the terminal cost center. The effective date for the proposed charges 

for airlines who belong to the Airlines Affairs Committee is retroactive to January 1, 1994. 

For non-based airlines, ground handlers and car rental companies, the effective date is 

scheduled to be March 1, 1994. The recommendation was approved on passage of an 


West Coast Parking Company - 1994 Operations Expense Budget was the subject of 

a memo to the Board from the Director of Aviation notifying the Board of the terms of the 

Airport Parking Lot Management Agreement that include the submittal of an annual 

budget. The annual operating budget of $2,479,765.00 for the current year ending 

September 30, 1994 was submitted. A detailed review of each line item in the operating 

budget reveals that operating needs support the expense increase submitted and include a 


- 2 -

wage adjustment of 4% per the union contract to become effective February 1, 1994. It was 

recommended that the Board approve the West Coast Parking Company's operating expense 

budget in the amount of $2,479,765.00 for the current year ending September 30, 1994. The 


Approval of New License and Concession Agreements - Concession Air Corporation 

and Emery Worldwide Airlines, Inc. was the subject of a memo to the Board from the 

Director of Aviation recommending approval of new agreements with Concession Air 

Corporation for 291 square feet of 1st floor office space in Building L-107, at $401.58 per 

month, effective September 20, 1993; and with Emery Worldwide Airlines,, Inc. for exclusive 

use of 1,363 square feet of office space, 4,391 square feet of shop space, 2,812 square feet 

of unpaved land, 966 square feet of dock area and 7,1] 1 square feet of paved parking, all 

located in and adjacent to Building L-814, and non-exclusive preferential rights to 

approximately 68,000 square feet of aircraft parking adjacent to Building L-812, North 

Airport, at $8,174.38 per month, effective April 1, 1994. The recommendation was approved 


Approval of New License and Concession Agreements with Existing Tenants - 

Solomon Enterprises dba Pilots' Computer Aviation Tech and Trans-Box Systems, Inc. was 

the subject of a memo to the Board from the Director of Aviation recommending approval 

of new agreements with Solomon Enterprises for 370 square feet of office space, 77 square 

feet of land under shed, 399 square feet of paved land and 2,015 square feet of apron area 

in and adjacent to Building L-142, North Airport, at $498.87 per month, effective October 

1, 1993; and with Trans-Box Systems, Inc. for 20,295 square feet of office/shop, 10,851 

square feet of shop, 6,588 square feet of storage, 1,159 square feet of dock, 3,997 square feet 

of paved land and 15,253 square feet of unpaved land all located in and adjacent to 

Buildings L-621, L-633, L-635, L-643 and L-870 Annex, North Airport, at $10,556.92 per 

February 15, 1994 - 3 -

month, effective October 1, 1993. The recommendation was approved on passage of 


Approval of Lease Supplement - Eugene Canipi Partnership was the subject of a 

memo to the Board from the Director of Aviation notifying the Board that Eugene Campi, 

surviving partner of Foley and Campi, a general partnership, has a ground lease covering 

36,549 square feet at 9260 Earhart Road on the North Airport which commenced February 

1, 1969 and was due to expire January 31, 1989, with two five year options to extend the 

term. The lease provides that the rental for each option period is to be adjusted to an 

amount equal to a 7% per annum rental upon the fair market value of the land. Mr. Campi 

previously exercised his first five year option and extended the WI commencing February 

1, 1989 to January 31, 1994 at a present monthly rental of $1,066.01. The premises have 

been improved with a building which is subleased to Space Air Supply, Inc. Mr. Campi has 

notified the Port in writing of his intent to exercise his second five year option to extend the 

term commencing February 1, 1994 to January 31, 1999 and he has agreed to a present land 

value of $8.40 per square foot or $1,790.90 per month. It was recommended that the Board 

authorize the execution of a supplement to the lease to provide for 1) extension of the lease 

to January 31, 1999, 2) adjustment of the monthly rental to $1,790.90 and 3) acknowledge 

the prior option exercise and adjusted rental. The recommendation was approved on 


Approval of Agreementend Right-of-Entry and Indemnity Agreement - Chevron 

U.S.A. Inc. was the subject of a memo to the Board from the Director of Aviation 

recommending approval to extend right-of-entry for Chevron U.S.A. Inc. for approximately 

19 acres bordered by Taxiway 0 to the north, Taxiway J to the east and Runway 15/33 to 

the south, at no rent, effective February 17, 1994. Chevron will perform surveying, 

geotechnical investigation and general inspection of the premises only to gather information 

necessary for the design of their new corporate aircraft hangar. The recommendation was 



- 4 -

Approval of New Leases - U.S. Department of Transportation, Federal Aviation 

Administration was the subject of a memo to the Board from the Director of Aviation 

recommending approval of new agreements with U.S. Department of Transportation, 

Federal Aviation Administration for 3,561 square feet of storage, 93 square feet of exterior 

restrooms, 4,693 square feet of unpaved yard area and 800 square feet of unpaved parking 

in and adjacent to Building L-723, North Airport, at $1,702.61 per month, effective October 

1, 1993; and with U.S. Department of Transportation, Federal Aviation Administration for 

2,825 square feet of office, 120 square feet of lobby/restrooms and 2,000 square feet of 

unpaved parking in and adjacent to Building L-619, North Airport, at $3,383.13 per month, 

effective October 1, 1993. The recommendation was approved on passage of Resolution No. 

94049. 

Approval of Agreement to Renew License and Concession Agreements for Term of 

One Year or Less - Mercury International Sales and Service Company and Midwest 

International, Inc. was the subject of a memo to the Board from the Director of Aviation 

recommending approval to renew the agreements with Mercury International Sales and 

Service Company for exclusive Travel Insurance Concession, 2 cabinets located in Buildings 

M-102 and M-130, at 10% of gross revenue against $150.00 per month minimum guarantee, 

effective February 1, 1994; and with Midwest International, Inc. for non-exclusive Pay TV 

Chair Concession, 12 chair locations in Building M-102, at 25% of Gross Revenue, effective 

February 1, 1994. The recommendation was approved on passage of Resolution No. 94050. 

Award of Contract for Removal of Rubber Deposits from Runways for the Period 

Commencing March 1. 1994 and Ending February 28. 1995. 1996 1997, or MOIA was the 

subject of a memo to the Board from the Deputy Executive Director notifying the Board 

of the one bid received and recommending award of the contract to Rampart Waterblast, 

Inc., at $22,000.00. It was noted that there are very:few contractors that have the equipment 

and experience to do this very specialized work and Rampart has done this work for the 

February 15, 1994

Port for the past few years. The recommendation was approved on passage of Resolution 

No. 94051. 

Approval of Architectural Services - Ferry Terminal Improvements at Jack London 

Square was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that in May, 1993, the California Transportation Commission approved 

a grant to the Port in the amount of $406,127.00 to make improvements to the existing 

Oakland/Alameda Ferry Terminal at the foot of Clay Street in Jack London Square. The 

project will improve the public access and use of the ferry system serving the Oakland/ 

Alameda area and San Francisco. Improvements include an extension of the existing 

covered walkway, additional lighting and planters, a new information center, and a new 

waiting area for ferry passengers. It was recommended that the Board authorize the 

preparation and execution of an agreement with Nishita and Carter to perform the 

architectural services for the project. Their services will include extension of the Jack 

London Square site plan, including the ferry terminal area, presentation of the project to 

BCDC for approval, and the preparation of plans and specifications for the Ferry Terminal 

Improvements. As compensation for their work, Nishita and Carter will be reimbursed for 

the direct salaries of personnel performing work on the project, fringe benefits, overhead 

costs, profit and other direct cots required t do the work. The maximum payment under the 

proposed agreement is $26,550.00 for development of the conceptual plan and presentation 

to BCDC, and $42,250.00 for the preparation of contract documents for the Ferry Terminal 

Improvements. The maximum compensation which can be made under the agreement is 

$68,800.00, with up to $18,000.00 of additional work available at the discretion of the 

Executive Director. The recommendation was approved on passage of Resolution No. 

94052. 

City of Oakland - Grant of Easement was the subject of a memo to the Board 

from the Director of Commercial Real Estate notifying the Board that the City of Oakland 

has requested that the Port grant an easement on a 4,474 square foot parcel of land, south 


- 6 -

of the Lake Merritt Channel between 1-880 and Embarcadero, for the purpose of 

constructing 66" sub-surface sanitary relief sewer pipeline. The location of the proposed 

pipeline is on property that the Port recently leased to EBMUD for the construction of their 

Wet Weather Treatment Facility. EBMUD is aware of the City's project and the two 

entities have been working together on the alignment of the pipeline improvement. The 

proposed easement will have a 66-year term, and will be subject and subordinate to the 

EBMUD Lease. All construction work undertaken on the property will be in accordance 

with plans and specifications approved in advance by the Port. The City will compensate 

the Port $250.00 as full consideration for the property rights. It was recommended that the 

Board approve the easement to the City of Oakland for compensation in the amount of 

$250.00 and consider the findings of the City Negative Declaration that there is no 

substantial evidence before the Board that the project may have a significant effect on the 

environment. The recommendation was approve on a passage of an ordinance to print. 

Recommendation to Authorize Agreement with Harding Lawson Associates to 

Provide Environmental Site Analysis and Risk Assessment Services, for the 42-Foot 

Project's Upland Disposal Sites was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board that it is the Port's responsibility as the local sponsor 

of the Federal Channel Deepening Project to identify, analyze and obtain an upland site for 

dredged material that is unsuitable for aquatic disposal. Gailbraith Golf Course was 

selected as an environmentally acceptable disposal site and Port staff has been conducting 

extensive environmental analysis on this site. During recent meetings regarding the 

proposed upland disposal sites, several environmental issues have been raised that need to 

be analyzed and addressed. In response to these new issues, Port staff has identified several 

new work tasks that must be accomplished before the 42-foot project can be successfully 

permitted and provided to the Corps as an upland site. The first issue that must be 

addressed is the Regional Water Quality Control Board recommendation that the Port 

provide engineered subsurface containment walls around the former landfill at the 

February 15, 1994 - 7

Gailbraith Golf Course before dredged material is place there. The purpose of the 

containment walls is to prevent the leachate currently in the landfill from moving off-site 

once the dredged material has been placed on the site. The recent discovery of 

hydrocarbons in the former landfill at Galbraith emphasizes the need to respond to the 

RWOCB's recommendation. The issue expresses concern over the potential health impacts 

that the dredged material could impose on nearby neighborhoods and businesses. Staff 

recommends that the Port complete a Human Health Risk Assessment, the standard 

practice for assessing the risks associated with potential chemical exposures. It was 

recommended that the Board authorize an agreement with Harding Lawson Associates to 

accomplish the tasks. HLA is very familiar with the 42-foot Project as they are currently 

preparing a portion of the Project's SEIR/EIS. They are especially familiar with the 

voluminous dredged sediment quality tests results and the results of the previous soil and 

groundwater investigation, information they will need to accomplish the tasks. The firm 

will be compensated up to a total maximum of $333,000.00 with $40,000.00 of additional 

work available at the discretion of the Executive Director. The recommendation was 


Third Supplemental Agreement with Nippon Yusen Kaisha was the subject of a 

memo to the Board from the Director of Maritime notifying the Board that Nippon Yusen 

Kaisha and Neptune Orient Line call at Outer Harbor Berth 23. Operations at Berth 23 

are conducted by Yusen Terminals, Inc., NYK's terminal operating subsidiary. Hapag-Lloyd 

(America) Inc., a German shipping line, previously conducted operations at the Charles P. 

Howard Terminal and last year Hapag-Lloyd entered into a Space Charter and Sailing 

Agreement with NYK and NOL and now uses Berth 23. In order to maintain an all-water 

service between the Pacific Northwest and Europe, Hapag-Lloyd entered into a service 

arrangement with Matson Navigation whereby Matson ships shuttle Hapag-Lloyd containers 

from Seattle to Oakland. This cargo is then relayed from Matson's Oakland terminal and 

transshipped to the NYK-NOL-Hapag-Lloyd joint service at Berth 23. As the competitive 

February 15, 1994 - 8 -

pressure of shuttling the cargo to Southern California exists, it was recommended that the 

Board modify the Agreement to include a specific wharfage rate for cargo that is 

transshipped from the Matson Terminal to Berth 23. The specific proposal is to assess this 

transshipped cargo a flat rate of $42.00 per container on the outbound loading at Berth 23. 


Plans and Specifications for Painting of Yard Light Poles, Berth 24, Outer Harbor 

Terminal was the subject of a memo to the Board from the Deputy Executive Director 

recommending their approval and authority to advertise for bids. The painting work consists 

of performing surface preparation work on the poles including removal of rust and mill scale 

deposits and the application of primer and exterior coatings on these poles. The project is 

categorically exempt and does not require the preparation of an environmental document. 


Plans and Specifications for Touch-Up Painting of Two Container Cranes (X-441 and 

X-442), Berths 62 and 63, Middle Harbor Terminal was the subject of a memo to the Board 

from the Deputy Executive Director recommending their approval and authority to advertise 

for bids. The work consists of removing damaged paint and rust from areas where the 

painting system is badly deteriorated using hand and power tools and hen priming and 

painting those areas. The project is categorically exempt and does not require the 



Personnel Items contained in a memo to the Board from the Director of Human 

Resources recommended the appointments of Jose Duenas, to Aviation Commercial 

Representative IV, effective February 17, 1994, at $6,924.00 per month; Mary Lim to 

Aviation Port Field Representative, effective February 17, 1994, at $4,144.00 per month; 

Karen Stevenson to Aviation Commercial Representative III, effective February 17, 1994, 

at $3,962.00 per month; and Joanne Holloway to Aviation Commercial Representative H, 

effective February 17, 1994, at $3,612.00 per month. All are present employees with new 

February 15, 1994 - 9 -

titles in the reorganization of the Aviation Marketing and Communications Department. 

Also recommended was a maternity leave of absence for Imelda Osantowski, Civil Engineer, 

Engineering Design Operations, for 140 working days through August 26, 1994. Further 

recommended were the terminations of the following Port employees, who are permanently 

disabled from performing their jobs, effective the close of the work day of February 15, 

1994. The Port of Oakland has fulfilled its obligations to the employees under Workers' 

Compensation, and in those cases where appropriate, vocational rehabilitation has been 

initiated: Donna R. Hayes, Employment Resources Development Coordinator; Thomas L. 

Hendrix, Custodian; and Beverly A. Muccular, Custodian. It was also recommended, for 

budgetary reasons, that the Board terminate the appointment of Dr. Shanti A. Vora to the 

position of "Manager, Special Projects Port Attorney's Office". Dr. Vora appeared before 

the Board to ask for special consideration to allow for the full use of his disability insurance, 

sick leave and vacation time. The Board established his termaination date as of May 15, 

1994. The recommendations were approved on passage of Resolution No. 94061 for 

appointments; Resolution No. 94062 for leave of absence; Resolution No. 94063 for 

terminations; and on an ordinance passed to print for eliminating the position of Manager, 

Special Projects Port Attorney's Office. 

Approval to Provide $25,000 in Support of the Oakland/East Bay International 

Trade and Visitor Center and $50,000 in Support of the Regional Trade Development 

Council of Northern California was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the City's International Trade and Foreign 

Investment Commission composed of 15 persons and staffed by the office of Economic 

Development and Employment. The Port staff provides assistance to the Commission on 

Port related matters as requested. During the formation of the International Trade and 

Foreign Investment Commission, Commission members expressed a desire to survey U.S. 

cities to determine what trade and investment organizational structures existed in cities that 

might serve as a model for the City of Oakland. At the completion of the evaluation of 


- 10 -

various international trade and investment organizational structures, the Seattle 

International Trade Alliance was considered to be one of the best trade organizations. The 

Mayor of the City of Oakland has taken the lead role in the formation of the Regional 

Trade Development Council of Northern California and, additionally, the Mayor has taken 

the lead in the development of the Oakland/East Bay International Trade and Visitor 

Center. The RTDC and Oakland/East Bay International Trade and Visitor Center plan to 

jointly lease 3,600 square feet of space on the seventh floor of the Port of Oakland building 

to house both the RTDC and the Oakland/East Bay International Trade and Visitor Center. 

The City of Oakland at its City Council meeting of January 25, 1994, authorized $50,000.00 

to be used as partial funding for the operation and administration of the Trade and Visitor 

Center and $25,000.00 for RTDC. The Mayor has requested that the Port of Oakland 

contribute $25,000.00 to provide partial support of the Oakland/East Bay International 

Trade and Visitor Center and $50,000.00 for the RTDC. In addition to funding support 

from the Port and City of Oakland, a grant application will be filed with the Economic 

Development Administration of the U.S. Department of Commerce for approximately $1.5 

million. It was recommended that the Board of Port Commissioners approve the allocation 

of $50,000.00 for the R1DC and $25,000.00 for the operation and administration of the 

Oakland/East Bay International Trade and Visitor Center. The recommendation was 


vote: 


Ayes: Commissioners Broussard, Cole, Kramer, Loh, Ortiz, 

Noes: None 

Absent: None 



- 11 -


AUTHORIZING APPROVAL OF THE 1994 OPERATING EXPENSE BUDGET 

FOR WEST COAST PARKING COMPANY UNDER THE AIRPORT PARKING 

LOT MANAGEMENT AGREEMENT." 



AND CONCESSION AGREEMENTS WITH CONCESSION AIR 

CORPORATION, AND EMERY WORLDWIDE AIRLINES, INC." 


APPROVING AND AUTHORIZING EXECUTION ION OF CERTAIN LICENSE 

AND CONCESSION AGREEMENTS ("L&C") WITH SOLOMON ENTERPRISES 

DOING BUSINESS AS PILOTS' COMPUTER AVIATION TECH, AND TRANS- 

BOX SYSTEMS, INC." 

'RESOLUTION ION NO. 94047 

APPROVING AND AUTHORIZING EXECUTION OF SUPPLEMENTAL 

AGREEMENT TO LEASE WITH CHARLES FOLEY AND EUGENE CAMPI." 


APPROVING AND AUTHORIZING EXECU HON OF CERTAIN AGREEMENT 

TO EX'T'END RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT 

("EXTENSION AGREEMENT") WITH CHEVRON U.S.A. INC." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN LEASE FOR 

REAL PROPERTY AGREEMENTS WITH UNITED STATES OF AMERICA." 

'RESOLUTION NO. 94050 

APPROVING AND AUTHORIZING EXECUTION OF CERTAIN AGREEMENT 

TO RENEW LICENSE AND CONCESSION AGREEMENTS ("RENEWAL") 

WITH MERCURY INTERNATIONAL SALES AND SERVICE COMPANY, AND 

MIDWEST INTERNATIONAL, INC." 


AWARDING CONTRACT RACT TO RAMPART WA'I ERBLAST, INC., FOR 

REMOVAL OF RUBBER DEPOSITS FROM RUNWAYS FOR THE PERIOD 

COMMENCING MARCH 1, 1994 AND ENDING FEBRUARY 28, 1995, 1996 OR 

1997, ME l'R OPOLITAN OAKLAND INTERNATIONAL AIRPO RT, OAKLAND, 

CALIFORNIA; FIXING THE AMOUNT OF BONDS TO BE PROVIDED IN 

CONNECTION THEREWITH." 

February 15, 1994 - 12 -


FINDING AND DETERMINING THAT A PROPOSED SUPPLEMENTAL 

AGREEMENT WITH NISHITA AND CARTER FOR ARCHITECTURAL 

CONSULTING SERVICES CONS EITUIES PROFESSIONAL OR SPECIALIZED 

SERVICES AND WAIVING COMPETITIVE BIDDING; AND AUTHORIZING 


"RESOLU 110N NO. 94053 

AUTHORIZING EXECUTION OF THIRD SUPPLEMENTAL AGREEMENT 

WITH NIPPON YUSEN KAISHA AND NEPTUNE ORIENT LINES, LTD." 


APPROVING PLANS AND SPECIFICATIONS IONS FOR PAINTING OF YARD 

LIGHT POLES, BERTH 24, OUTER HARBOR l'ERMINAL, OAKLAND, 



APPROVING PLANS AND SPECIFICATIONS FOR TOUCH-UP PAINTING OF 

TWO ALLIANCE CONTAINER CRANES X441(C6757) AND X442(C6756), 

BERTHS 62 AND 63, MIDDLE HARBOR TERMINAL, OAKLAND, 



APPROVING AND AUTHORIZING CONTRIBUTION OF PORT FUNDS FOR 

THE REGIONAL TRADE DEVELOPMENT COUNCIL OF NORTHERN 

CALIFORNIA AND THE OAKLAND/EAST BAY IN IERNATIONAL TRADE 

AND VISITOR CENTER." 


GRAN1ING KAISERAIR, INC. PERMISSION TO PERFORM CERTAIN 

WORK." 


GRANTING UNITED AIRLINES, INC. PERMISSION TO PERFORM CERTAIN 

WORK." 


AUTHORIZING THE EXECUTION OF PROMISSORY NOTE & SETTLEMENT 

AGREEMENT WITH WORLDWIDE AIRLINES SERVICES, INC., DBA 

LEISURE AIR." 


- 13 -

The following resolution was introduced and passed separately by the following vote: 

Ayes: Commissioners Cole, Kramer, Loh, Ortiz, 

Noes: None 


Abstained: Commissioner Broussard - 1 

Absent: None 



HARDING LAWSON ASSOCIATES FOR ENVIRONMENTAL CONSULTING 





AUTHORIZING THE EXECUTION AND DELIVERY OF GRANT OF EASEMENT 

TO THE CITY OF OAKLAND," and Port Ordinance No. being, "AN ORDINANCE 

REPEALING SECTION 6.026 OF PORT ORDINANCE NO. 867 ELIMINATING THE 

POSITION OF MANAGER, SPECIAL PROJECTS PORT ATTORNEY'S OFFICE," was 



Noes: None 

Absent: None 


At the hour of 5:50 p.m., the Board enter into closed session as previously announced 

by President Lockhart and reconvened in open session at the hour of 5:55 p.m during which 

time Commissioner Vohs was excused from the meeting. 

vote: 


February 15, 1994 - 14 -


Noes: None 

Ortiz and President Lockhart - 6 

Absent: Commissioner Vohs - 1 




RATIFYING LEAVE OF ABSENCE TO IMELDA T. OSANTOWSKI, CIVIL 

ENGINEER." 


I ERMINATING CERTAIN APPOINTMENTS." 


AUTHORIZING THE EXECUTION OF A LEASE WITH NATIONAL RAILROAD 

PASSENGER CORPORATION AND DIRECTING RECORDATION THEREOF," and 

Port Ordinance No. 3195 being, "AN ORDINANCE APPROVING AND AUTHORIZING 

THE EXECUTION OF A FIFTH SUPPLEMENTAL AGREEMENT TO PAVILION 

BLOCK LEASE WITH OAKLAND PORTSIDE ASSOCIATES AND DIRECTING 

RECORDATION THEREOF," and Port Ordinance No. 3196 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING THE EXECUTION OF A FIFTH 

SUPPLEMENTAL AGREEMENT TO GALLAGHER BLOCK LEASE WITH 

OAKLAND PORTSIDE ASSOCIATES AND DIRECTING RECORDATION THEREOF, 

" and Port Ordinance No. 3197 being, "AN ORDINANCE AMENDING SALARY 

SCHEDULES NOS. 230 AND 262.50 OF SECTION 1.03 OF PORT ORDINANCE NO. 

867 AND CREATING NEW POSITIONS IN THE AVIATION MARKETING AND 

COMMUNICATIONS DEPARTMENT," were read a second time and passed by the 

following vote: 


- 15 -

seconded. 


Noes: None 

Ortiz and President Lockhart - 6 

Absent: Commissioner Vohs - 1 



- 16 -




The meeting, formal portion, was held on Tuesday, March 1, 1994, at the hour of 




received a status report on Jack London Square. 

Commissioners present: Broussard, Cole, Ortiz, Vohs and 


Commissioners absent: Commissioners Kramer and Lob - 2 


Deputy Port Attorney, Thomas Clark; Director of Aviation; Director of Commercial Real 

Estate; Director of Human Resources; Director of Maritime; Director of Finance; Chief 

Engineer; Chief of Facilities; Director of Equal Opportunity; Director of Governmental 




for under Government Code Section 54956.9 (b) arid (c); and personnel matters as provided 


Commissioner Broussard, Chair of the Aviation, informed the Board that the 




Award of Contract of the AirBART Shuttle Bus Service was the subject of a memo 

to the Board from the Director of Aviation notifying the Board of the request for proposals 

to provide the AirBART shuttle bus service. Two companies submitted proposals and the 

selection criteria involved several factors including firm experience, cost, management

expertise and financial capability. It was recommended that the Board authorize an 

agreement with Airport Parking Management of Oakland, dba Oakland Airport Shuttle Bus 

Company, to provide the AirBART shuttle bus service. The recommendation was approved 


Approval of Amendment to MOU between Port of Oakland, City of Oakland, and 

City of Alameda for Environmental Work on the Airmrt Roadway Proiect was the subject 

of a memo to the Board from the Deputy Executive Director notifying the Board of the 

original Memorandum of Understanding for work relating to the environmental evaluation 

of the Airport Roadway Project. Under this MOU, the Port was authorized to hire 

Woodward-Clyde Consultants to prepare an Environmental Impact Report for the project 

and an Administrative Draft E1R was prepared. Starting in May of 1992 and continuing 

through to March of 1993, the Port and the FAA received letters from several public 

agencies and private organizations which raised concerns about the project. Some of these 

letters objected to the Port's plans to prepare an EIR on the roadway, claiming that the Port 

was segmenting the roadway from a larger project, the 2002 Airport Development Program 

EIR/EIS. Both the Port and FAA recognized this legitimate concern, and as a result the 

Port advised Oakland and Alameda that it planned to abandon any further efforts on the 

roadway as a separate EIR, and would instead consolidate the roadway analysis into the 

2002 ADP EIR/EIS. On January 26, 1994, both Oakland and Alameda agreed with the 

Port's proposal to stop work on the EIR and to instead convert the draft document to an 

"Airport Roadway Technical Report", which would be used as a supporting technical study 

to the 2002 ADP EIR/EIS. As a result of this agreement, the parties agreed that the MOU 

will require amendment to reflect this change in direction. The Port will continue to act as 

the Project Sponsor and ead Agency under CEQA, and Oakland and Alameda will 

continue to act as reviewing agencies for purposes of drafting the technical report. Under 

the revised agreement, Woodward-Clyde will convert the Draft EIR to an Airport Roadway 

Project Technical Report and will continue to provide related consultant services to the 

March 1, 1994 - 2 -

Port, including more detailed hazardous materials investigations. The estimated total 

project cost for the roadway is $60.6 million. This project is to be funded by $47.2 million 

from Measure B, administered by the Alameda County Transportation Authority and $13.4 

million from the three local agencies. The Port's local share is estimated to be $8.6 million, 

which is anticipated to be offset by the value of its right-of-way to be dedicated to the 

project. It was recommended that the Board authorize a First Amendment to the January 

27, 1992, Memorandum of Understanding by and among the Port of Oakland, the City of 

Oakland and the City of Alameda for work relating to environmental evaluation of the 

Airport Roadway Project. The recommendation was approved on passage of Resolution No. 

94065. 

Oakland International Airport Smoke-Free Ordinance was the subject of a memo 

to the Board from the Director of Aviation notifying the Board that the two terminal 

buildings at Oakland International Airport have designated seating areas in which 

passengers are permitted to smokers. The Port has received numerous complaints from 

passengers affected by second hand smoke emanating from thee areas as well as requests 

from the tenant airlines to eliminate smoking from the buildings altogether. Port staff 

investigated and found impractical the construction of separate smoking areas in both 

terminals. It was recommended that the Board adopt a Port ordinance to ban smoking in 

the terminal buildings at Oakland International. Airport. The recommendation was 

approved on passage of an ordinance to print. 

Approval of Revised Change Order Amount for Construction of Airfield Signage was 


of the contract with Rosendin Electric, Inc. for construction of airfield signage. The Board 

has previously approved a change order in the estimated amount of $106,500.00 to modify 

142 sign foundations to meet new FAA requirements. At the time the change order was 

approved in January 1994, the contractor was in the process of modifying the first 42 

foundations. The change order specified that payment for modifying those 42 foundations 

March 1, 1994 

- 3 -

would be based on the force account provisions of the contract, and payment for the 

remaining 100 foundations would be based on a fixed price of $72,404.00. The estimated 

cost of the force account work was $34,000.00. The contractor has submitted the cost 

documentation required for the force account work on the 42 foundations. Staff has 

reviewed the information and has reached agreement with the contractor on a final cost of 

$52,080.00 for the force account work. The final cost of the change order is $124,484.00, 

and it was recommended that the Board approve the final cost of the previously approved 

change order to Rosendin Electric, Inc. The recommendation was approved on passage of 


Engineering Design Services for Construction of Aircraft Apron Between Taxiway 0 

& Runway 15/33, North Airport was the subject of a memo to the Board from the Deputy 

Executive Director recommending approval to enter into an agreement with CH2MHi11 

California Inc. for engineering design sery ices for the construction of the proposed aircraft 

apron. The project work includes site preparation, site layout, pavement, drainage, utilities, 

signage, striping, and other miscellaneous improvements. As compensation for its services, 

CH2MHi11 would be reimbursed for all direct costs for services required for the work, and 

would be paid a fixed fee of $18,389.00. The maximum payment that can be made under 

the proposed agreement is $239,600.00 with $59,900.00 of additional work available at the 

discretion of the Executive Director. The recommendation was approved on passage of 


Approval of New License and Concession Agreements - Air Transport International 

and Emery Air Freight Corporation, South Airport was the subject of a memo to the Board 

from the Director of Aviation recommending approval to enter into an agreement with Air 

Transport International for 986 square feet of trailer site space in the vicinity of Taxiway 

3 on the east ramp of the South Airport, at $410.83 per month, effective July 19, 1993; and 

with Emery Air Freight Corporation for Building M-132 on 3.0925 acres of land and 107,688 

square feet of apron on a non-exclusive basis, at $23,328.00 per month gross rent and 

March 1, 1994 

- 4 -

$14,430.19 per month from apron space. The recommendation was approved on passage 



of One Year or Less - Ogden Ground Services, Inc., South Airport was the subject of a 

memo to the Board from the Director of Aviation recommending approval of an agreement 

with Ogden Ground Services, Inc. for 448.44 square feet of office space in Building M-103, 

at $2,413.50 per month plus 10% of Gross Revenues, effective July 1, 1993. The 


Oakland Executive Center, a California General Partnership - Proposal to Purchase 

9.49 Acres of Land (7677 Oakport Street) was the subject of a memo to the Board from the 

Director of Commercial Real Estate notifying the Board that Oakland Executive Center, a 

California general partnership, currently has a lease with the Port for 9.49 acres of land in 

the Oakland Airport Business Park. The land is improved with a twelve-story, Class A, 

office building (known as the Airport Corporate Center) containing approximately 270,000 

square feet. All the improvements were constructed by the lessee. The 66-year ground 

lease expires on February 28, 2047. The Port has received an offer to purchase the fee 

interest in the land for $3,834,026.00, or $9.27 per square foot. The staff has analyzed the 

proposed purchase price a id has determined that the offer represents fair market value for 

the land, and it was recommended that the Board approve in principle the sale of the land. 

The recommendation was approved on a motion duly made by Commissioner Broussard, 

seconded and passed unanimously. 

Recommendation to Approve Second Supplemental Agreement to Lease with Dongary 

Investments, Ltd. (2225 Seventh Street); Reduce Area, Increase Rent was the subject of a 

memo to the Board from the Director of Commercial Real Estate. At the request of 

Commissioner Vohs, this item was held over for further review. 

Recommendation to Approve Fourth Supplemental Agreement with Oakland 

Spaghetti Factory, Inc. Regarding Modifications of Percentage Rent (62 Embarcadero) was 

March 1, 1994 - 5 -

the subject of a memo to the Board from the Director of Commercial Real Estate notifying 

the Board that the Oakland Spaghetti Factory, Inc., has a lease from the Port covering 

approximately 12,400 square feet of restaurant space in the building located at 66 Jack 

London Square. The twenty (20) year lease commenced April 1, 1987 and generates a 

minimum annual rental of $36,000.00 per year plus 7% of the gross receipts in excess of 

$1,800,000.00. The lessee took the space "as is" and invested approximately $1,500,000.00 

to convert the space to its present condition. On January 1, 1995, the lease calls for an 

adjustment to a minimum rental of $60,000.00 per year vs. 6% of gross receipts up to 

$1,800,000.00 and 7% of the gross receipts in excess of $1,800,000.00. Until recently, the 

restaurant has not produced the revenue expected by the lessee. Because of the general 

economy, during the first two years the lessee experienced losses operating the restaurant. 

The lessee has requested deferring the percentage rental adjustment for a thirty-six (36) 

month period so that they could recapture earlier losses. The deferment of the adjustment 

based on the present sales value of $1.6 million dollars would amount to $118,000.00. The 

lessee has offered to construct an outside patio seating area similar to El Torito and will 

construct the patio space at its own expense estimated to be $25,000.00. In order to mitigate 

previous losses and facilitate the restaurant expansion, it is recommended that the 

percentage rental adjustment for Old Spaghetti Factory be deferred for an eighteen (18) 

month period. The minimum rental would still be adjusted to $60,000.00 per year. The 

abated rental would be approximately $55,000.00. The abatement would cease if the gross 

receipts exceeded $2,000,000.00 during that period. The recommendation was approved on 


Recommendation to Approve Fourth Supplemental Agreement with Scott's Jack 

London Seafood. Inc. Regarding Increase of Percentage Rent, Deletion of CAM/Promotion 

Contribution (Two Broadway) was the subject of a memo to the Board from the Director 

of Commercial Real Estate notifying the Board of the fifty-five year lease between the Port 

and Scott's Jack London Seafood, Inc., which commenced on August 1, 1987. The rental 

March 1, 1994 

- 6 --

of $16,514.00 is against 4.2% of the gross receipts as overage rent. The lease also requires 

that the lessee pay .8% of gross receipts (not less than $22,000.00 per year) as "additional 

rent CAM-promotion Percentage Rent." The .8% CAM/Promotion based on $6 million in 

revenue is approximately $48,000.00. The original purpose of the promotion-rent 

contribution (.8%) was that all lessees (other than OPA) would make contributions to the 

"Waterfront Association" to conduct promotional events for Jack London Square. The only 

contributor, other than OPA, is Scott's Restaurant. Representatives of the restaurant have 

maintained that restaurant advertising must be tightly focused to a specific customer profile 

and the promotion of the Jack London Square is sufficiently general and misses the specific 

"Scott's customer." It was recommended that the CAM/promotion provision of the lease 

be deleted and the percentage rental be increased to 4.5%. Scott's would establish their 

prior promotion expenditures and has agreed to produce documentation, including general 

ledger inspection by the Port, to allow an increase in promotion expenditures and in 

addition the Port would no longer make a contribution to any of Scott's promotion events. 


Recommended Approval of New License and Concession Agreement for Il Pescatore 

Restaurant (75 Jack London Square, Building F-206) - Increase Rent was the subject of a 

memo to the Board from the Director of Commercial Real Estate recommending approval 

of a new agreement with Ottavio Guidi, Milvano Orsi, and Lorenzo Picchi, dba II Pescatore 

Restaurant for 400 square feet of warehouse space in Building F-206, Jack London Square, 

at $350 per month, effective March 1, 1994. The recommendation was approved on passage 


Authorization to Submit Grant Application to the California Integrated Waste 

Management Board to Secure Funds for Installation of Seven Above-Ground Waste Oil 

Tanks in the Port's Public Marinas was the subject of a memo to the Board from the 

Director of Commercial Real Estate notifying the Board that the California Oil Recycling 

Enhancement Act provides funds to cities and counties for establishing and maintaining 

March 1, 1994 

- 7 -

local used oil collection programs that encourage recycling or appropriate disposal of used 

oil. Under this Act, opportunity grants are available to local governments through the 

California Integrated Waste Management Board, on a competitive basis, for the 

establishment of new programs or the enhancement of existing programs that address the 

proper disposal of used lubricating oil. One of the eligible programs is for used oil 

collection facilities at marinas. The Port currently has an approved CIP project to install 

seven new above-ground waste oil tanks for use in the Port's public marinas. This project 

will also include the installation of fire extinguishers and security fencing required by city 

codes. The estimated cost of the project is $150,000.00 and appears to be an eligible 

program under the CIWMB Opportunity Grant program. It was recommended that the 

Board approve a Resolution authorizing the submittal of the Grant Application and 

authorizing the Executive Director to execute any documents on behalf of the Port that may 

bring conclusion to the grant procedures. The recommendation was approved on passage 


Approval of Negative Declaration/Initial Study and Building Permit Application for 

Matson Terminals, Inc. Bioremediation Project, 3050 Seventh Street was the subject of a 

memo to the Board from the Deputy Executive Director notifying the Board that Matson 

Terminals Incorporated proposes to remove three Underground Storage Tanks and conduct 

bioremediationfbioventing to remove soil and groundwater contamination that exist on the 

site. Matson also proposes to demolish a corrugated steel shed that was used for tire 

storage. The purpose of the Matson Bioremediation/13ioventing project is to remediate soil 

and groundwater contamination caused by leaking UST's owned and operated by Matson. 

The net result of the project will be an improvement of the environmental conditions on the 

site and the restoration of the property owned by the Port of Oakland. The Port has 

received a building permit application from International Technology Corporation on behalf 

of Matson to perform bioremediation on their leased property for the project. The 

valuation of the work is $165,000.00. In compliance with the California Environmental 

March 1, 1994 - 8

Quality Act, the Port prepared an Initial Study to determine whether the project would have 

any significant impacts on the environment. The Initial Study concluded that the project 

would not result in any significant adverse impacts. Although the IS concludes that this 

project will result in no significant adverse impacts, the issues that may be considered of 

most concern include the use of ammonia gas to aide bacterial growth. There exists a slight 

chance of the creation of a human health hazard if the ammonia tanks should upset. There 

is no apparent threat to human health once the ammonia is injected into the wells and 

enters the aqueous state. The benefits of remediating the subsurface soils and groundwater 

far exceed the extremely minor threat to human health posed by this project. It was 

recommended that the Board approve and adopt the Negative Declaration/Initial Study for 

the Matson Marine Terminal Inc. Bioremediation/Bioventing Project; find that the Negative 

Declaration reflects the independent judgement of the Board of Port Commissioners; and 

approve the building permit application. The recommendation was approved on passage 


Purchase of One Spare Motor for Supplying_Electricity to Refrigerator Containers 

at the Seventh Street Marine Container Terminal was the subject of a memo to the Board 

from the Director of Maritime notifying the Board that Marine Terminals Corporation has 

a Management Agreement with the Port for operation of the Seventh Street Terminal. The 

facility does not contain permanent in-ground refrigerated container electrical receptacles. 

The Port has provided four portable motor generator units with capacity for 96 outlets. The 

shipping lines have had great operating success with the portable motor generator units. 

However, the generators have been subject to an immense amount of use and there is 

concern over possible engine failure. The most cost effective way to address this concern 

is to provide a complete spare motor. The spare motor would allow MTC to systematically 

rotate and rebuild the current motors for the existing four units and would supply a spare 

motor in the event of total engine failure. It was recommended that the Board approve the 

purchase of one spare motor for the portable generator sets by MTC at a cost of 

March 1, 1994 9

approximately $25,000.00 and authorize the reimbursement to MTC at the rate of two and 

one half percent (2-1/2%) of the gross annual tariff revenues from dockage and wharfage 

which accrue from users of the terminal. The recommendation was approved on passage 


Establishment & Modification of Rental Rates for Cranes X-415, X-416, X-417 and 

X-422 - Howard Terminal was the subject of a memo to the Board from the Director of 

Maritime notifying the Board that Container Crane X-422 located at the Seventh Street 

Marine Container Terminal was previously assigned to Marine Terminals Corporation. On 

October 5, 1993, the Board approved modification of Crane X-422 so that it can service 

larger container ships and be relocated to the Charles P. Howard Terminal where terminal 

services are conducted by Stevedoring Services of America. Modifications to Crane X-422, 

including raising of the crane height to 100 feet above dock, will be made while the crane 

is at the Seventh Street Terminal. Current plans are to relocate Crane X-422 from the 

Seventh Street Terminal to the Charles P. Howard Terminal during the early part of next 

month, and it was recommended that the Board establish rates for Crane X-422 in Item 

09165 of the Port's tariff equating to $380.00 for basic rental, $185.00 for maintenance and 

repair, and $30.00 for electrical power. Total hourly crane rental rates will therefore be 

$595.00 per hour, effective April 15, 1994. The Port is concurrently raising the height of 

Howard Terminal Cranes X-415 and X-416, and it was further recommended that the fees 

be increased for Cranes X-415, X-416, X-417 and X-422 to $400.00 and that with minor 

adjustments to the hourly maintenance and repair rates for the new total hourly rental will 

equate to $600.00 per hour. The recommendation was approved on passage of an ordinance 

to print. 


Human Resources recommended the creation of job specifications and assignment of 

corresponding salary schedule for a new Port-unique Civil Service classification of "Port 

Principal Systems Planning Analyst" to support the reorganization of the Management 

March 1, 1994 

- 10 -

Information Systems Department. Also recommended was the correction of amendment to 

Salary Schedule 230 to reflect the "y rate" at $3,873.00. The recommendations were 

approved on passage of Resolution No. 94076 for job specifications and on an ordinance to 

print for creation of position and salary schedule amendments. 


the Board recommending approval for the travel of Leo R. Brien, Director of Maritime, to 

Hamburg and Bremen, Germany, and Copenhagen, Denmark, to meet with shipping lines 

on or about the period March 13 - 18, 1994; and the travel of Steven Grossman, Director 

of Aviation, to Brussels, Belgium, on or about the period April 23 - May 1, 1994, to 

participate as a panelist at a conference sponsored jointly by the North American and 

European chapters of the Airports Council International Economic Committees, and to 

meet with several passenger and cargo carriers to discuss the potential of establishing 

Oakland service. The recommendation was approved on passage of Resolution No. 94077. 

Recommendation to Authorize the Executive Director to Execute an Agreement with 

Americasian Technology Ventures, Inc., to Serve as Consultants on Behalf of the Port at the 

Vietnamerica Expo '94. was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board that on April 21, 1994, Vietnam will be host to U.S. companies 

and agencies at Vietnamerica Expo '94, which will be the first international exhibition of 

American products and services in Vietnam. The Vietnamerica Expo '94 has already 

attracted over 400 U.S.-based organizations, including top names like Coca Cola, United 

Technologies, and General Motors Corporation. The City of Oakland, led by Mayor Elihu 

Harris, has previously made contact with senior government officials to participate in the 

Vietnamerica Expo '94 and other potential business opportunities in Vietnam. It was 

recommended that the Board authorize an agreement with Americasian Technology 

Ventures, Inc. to serve as consultant on behalf of the Port at the Vietnamerica Expo '94 for 

a fee of $24,000.00. The firm is proposing to serve intermediary and agent for the Port of 

Oakland at the Vietnamerica Expo '94 and will provide the following services: perform 

March 1, 1994 

- 11 -

creative work to strategically position the Port of Oakland at the Expo; develop high quality 

display graphics and support material to attract Expo attendees to engage in meaningful 

discussions and possible commitments to business relationships with the Port and City of 

Oakland; prepare Port and City of Oakland marketing information in English and 

Vietnamese; prepare, staff and transport booth display material; and arrange meetings with 

senior government/business leaders. The recommendation was approved on passage of 


Recommended Amendment to Board's By-Laws to Comply with Amendments to 

Brown Act on Closed Sessions was the subject of a letter to the Board from the Port 

Attorney notifying the Board that the Brown Act Section 54957.7 has been amended 

effective April 1, 1994. The relevant change is as follows: the legislative body must disclose 

in an open meeting and prior to any closed session the item or items to be discussed in 

closed session; and disclosure may take the form of a reference to the item or items as they 

are listed by number or letter on the agenda. In order to be consistent with amended 

Section 54957.7 of the Brown Act, it was recommended that the foregoing sentence of 

Article II, Section 4 of the By-laws be amended as follows effective April 1, 1994: "Prior 

to holding any closed session, the President shall disclose in the open meeting the item or 

items to be discussed in closed session, by reference to the item or items as they are listed 

by number, letter or otherwise on the agenda." The recommendation was approved on 


Recommendation to Approve Agreements with Pacific Gas & Electric Company 

Regarding Hazardous Substances at Lot 12 Corner of Embarcadero and Washington Street 

was the subject of a letter to the Board from the Port Attorney notifying the Board that Lot 

12 is located behind the Overland House restaurant in the Jack London Square area and 

is bounded by Washington Street, Second Street, Broadway and Embarcadero. PG&E 

(and/or its predecessors) owned and operated a gas manufacturing plan, warehouse and 

garage on the Lot 12 site from approximately 1866 to approximately 1963. Port 

March 1, 1994 

- 12 -

investigation to date indicates that the soil at Lot 12 is contaminated with polynuclear 

aromatic hydrocarbons and volatile organics, and the groundwater underlying the site is 

contaminated with polynuclear aromatic hydrocarbons. The Port has incurred costs of 

approximately $90,271.09 as of December 31, 1993 for the investigation and monitoring of 

the groundwater of the Lot 12 site and the preparation of a draft Preliminary Endangerment 

Assessment and draft Health Risk Assessment for Lot 12. The Board approved on May 4, 

1993, the Port's filing of a complaint against PG&E for damages resulting from 

environmental contamination at Lot 12. The Port has not at this time filed a complaint 

against PG&E concerning this matter, and the Port Attorney's Office has been negotiating 

with PG&E's attorney since June 1993 the possible cost sharing of certain Port incurred past 

costs and certain future costs associated with the ]Lot 12 environmental investigation. As 

a result of negotiations, the Port Attorney's Office and PG&E's attorney have negotiated 

a Past Costs Agreement and a Future Costs Agreement. The Past Costs Agreement 

requires PG&E to pay the Port one-half of the Port incurred costs concerning the 

environmental investigation as of December 31, 1993 (one-half of $90,271.09). The Future 

Costs Agreement provides that the Port and PG&E will work cooperatively to prepare a 

PEA and HRA and pay one-half of the costs incurred for said studies incurred from and 

after January 1, 1994, up to a maximum of $84,342.94 ($42,171.47 maximum for each party). 

PG&E has not agreed to pay the regulatory fees estimated to be in excess of $9,000.00 

associated with the PEA and HRA. The agreements provide for a tolling of the statute of 

limitations for filing a complaint and do not preclude the Port from seeking and obtaining 

100% reimbursement for all costs. The subject agreements will provide the Port 

approximately $87,000.00 in the short term for past and future costs with no legal risk or 

prejudice to later filing a complaint for all costs and damages, and it was recommended that 

the Board approve the agreements. The recommendation was approved on passage of 


March 1, 1994 

- 13 -

vote: 


Ayes: Commissioners Broussard, Cole, Ortiz, 

Noes: None 


Absent: Commissioners Kramer and Loh - 2 



ROBERT W. JOHNSON, NICOLAS LEONOUDAKIS AND STANLEY H. HALL, 

A PARTNERSHIP DBA AIRPORT PARKING MANAGEMENT OF OAKLAND, 

FOR THE PROVISION OF THE AIRBART SHUTTLE BUS SERVICE 

BETWEEN THE BART COLISEUM STATION AND THE OAKLAND 

INTERNATIONAL AIRPORT CONSTITUTES AN AGREEMENT FOR 

PROFESSIONAL OR SPECIALIZED SERVICES AND AUTHORIZING 



APPROVING AND AUTHORIZING EXECUTION OF SAID AMENDMENT TO 

MEMORANDUM OF UNDERSTANDING AMONG PORT OF OAKLAND, 

CITY OF OAKLAND AND CITY OF ALAMEDA FOR ENVIRONMENTAL 

WORK ON AIRPORT ROADWAY PROJECT." 


FOR APPROVAL OF REVISED CHANGE ORDER FOR CONS !RUCTION OF 

AIRFIELD SIGNAGE, METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT, OAKLAND, CALIFORNIA." 

'RESOLUTION ION NO. 94067 


CH2M HILL CALIFORNIA INC. FOR ENGINEERING DESIGN CONSULTING 





APPROVING AND AUTHORIZING EXECU'T'ION OF CERTAIN LICENSE 

AND CONCESSION AGREEMENTS WITH AIR TRANSPORT 

INTERNATIONAL AND EMERY AIR FREIGHT CORPORATION." 

March 1, 1994 

- 14 -



TO RENEW LICENSE AND CONCESSION AGREEMENT ("RENTAL") WITH 

OGDEN GROUND SERVICES, INC." 


APPROVING AND AUTHORIZING EXECUTION OF FOURTH 

SUPPLEMENTAL AGREEMENT AMENDING THE LEASE WITH OLD 

SPAGHE'I . 1 I FACTORY, INC." 


APPROVING AND AUTHORIZING EXECUTION OF FOURTH 

SUPPLEMENTAL AGREEMENT AMENDING LEASE WITH scarps JACK 

LONDON SEAFOOD, INC." 


APPROVING AND AUTHORIZING EXECU HON OF CERTAIN LICENSE 

AND CONCESSION AGREEMENT WITH IL PESCATORE RESTAURANT." 


APPROVING AND AUTHORIZING SUBMITTAL OF LOCAL GOVERNMENT 

USED OIL OPPORTUNITY GRANT APPLICATION." 

"RESOLU'l ION NO. 94074 

CERTIFYING IFYING CONSIDERATION OF INITIAL STUDY AND NEGATIVE 

DECLARATION FOR MATSON TERMINALS, INC. BIOREMEDIATION 

PROJECT/3050 7TH STREET, FINDING NO SUBSTANTIAL EVIDENCE OF 

SIGNIFICANT EFFECT ON THE ENVIRONMENT, APPROVING THE 

NEGATIVE DECLARATION, APPROVING THE PROJECT AND GRANTING 

MATSON"TERMINALS, INC. PERMISSION TO PERFORM CERTAIN WORK. 


APPROVING THE COST OF ONE SPARE MOTOR FOR REIMBURSEMENT 

UNDER MANAGEMENT AGREEMENT WITH MARINE 'TERMINALS 

CORPORATION." 


APPROVING JOB SPECIFICATIONS ]FOR THE POSITIONS OF PORT 

PRINCIPAL PROGRAMMER ANALYST AND PORT PRINCIPAL SYSTEMS 

PLANNING ANALYST." 


CONCERNING CERTAIN TRAVEL." 

March 1, 1994 - 15 -



AMERICASIAN TECHNOLOGY VENTURES, INC. FOR CONSULTING 





AMENDING THE BY-LAWS AND ADMINISTRATIVE RATIVE RULES OF THE 

BOARD OF PORT COMMISSIONERS RELATING TO DISCLOSURE OF 

ITEMS EMS TO BE DISCUSSED IN CLOSED SESSION." 


APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO 

EXECUTE THE PAST COSTS AGREEMENT AND FUTURE COSTS 

AGREEMENT WITH PACIFIC GAS AND ELECTRIC COMPANY," 

"RESOLU'T'ION NO. 94081 

GRANTING EAST BAY REGIONAL PARK DIS'T'RICT PERMISSION TO 

PERFORM CERTAIN WORK." 


GRANTING CROWLEY MARINE SERVICES, INC. PERMISSION TO 



GRANTING EDWARD PERIERA AND AMORNRATANA REGO PERMISSION 

TO PERFORM CERTAIN WORK." 


FINDING AND DE 1ERMINING THAT PROPOSED AGREEMENT WITH 

BOYDEN INTERNATIONAL FOR PERSONNEL CONSULTING SERVICES 





APPROVING AND AUTHORIZING THE EXECU'T'IVE DIRECTOR TO 

EXECU'T'E THE STIPULATION TO AMEND CITATIONS AND WITHDRAW 

APPEAL IN THE MA'TT'ER OF THE APPEAL OF THE PORT OF OAKLAND, 

THE PORT OF OAKLAND - METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT (DOCKET NOS. 93-R1D4-1066 THROUGH 1068)." 

March 1, 1994 - 16


AUTHORIZING THE FILING OF CLAIMS UNDER THE OIL POLLUTION 

ACT OF 1990 AND A CIVIL COMPLAINT AGAINST KEEP ON TRUCKING 

COMPANY, INC." 


AUTHORIZING THE EXECUTION OF SE l'ILEMENT AGREEMENT AND 

MUTUAL RELEASE WITH DAVID M. GRANT." 


AUTHORIZING THE EXECUTION AND DELIVERY OF GRANT OF EASEMENT 

TO THE CITY OF OAKLAND," and Port Ordinance No. 3199 being, "AN ORDINANCE 

REPEALING SECTION 6.026 OF PORT ORDINANCE NO. 867 ELIMINATING THE 

POSITION OF MANAGER, SPECIAL PROJECTS PORT Al I ORNEY'S OFFICE," and 

Port Ordinance No. 3200 being, "AN ORDINANCE AMENDING SECTIONS 2, 10.01, 10.1 

AND 10.12 OF PORT ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE 

OF FACILITIES AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT," 

were read a second time and passed by the following vote: 

Ayes: Commissioners Broussard, Cole, Ortiz, 

Noes: None 



Port Ordinance No. being, "AN ORDINANCE ADDING NEW SECTION 1.19 

TO PORT ORDINANCE NO. 1047 ESTABLISHING REGULATIONS CONCERNING 

SMOKING IN THE TERMINAL BUILDING COMPLEX AT METROPOLITAN 

OAKLAND IN IERNATIONAL AIRPORT AND PRESCRIBING PENALTIES FOR 

VIOLATIONS," and Port Ordinance No. being, "AN ORDINANCE AMENDING 

PORT ORDINANCE NO. 2833 RELATING TO CONTAINER CRANE ASSIGNMENT 

AND RENTAL RATES," and Port Ordinance No. being, "AN ORDINANCE 

AMENDING PORT ORDINANCE NO. 867 TO CREAI E ONE NEW POSITION OF 

PORT PRINCIPAL SYSTEMS PLANNING ANALYST AND AMENDING PORT 

March 1, 1994 

- 17 -

ORDINANCE NO. 3195 TO CORRECT A SALARY SCHEDULE AMENDMENT," were 


Ayes: Commissioners Broussard, Cole, Ortiz, Vohs 

Noes: None 



At the hour of 5:15 p.m., the Board entered into closed session as previously 

announced by President Lockhart and reconvened in open session at the hour of 5:50 p.m. 

Mr. Henry Williams, a concerned West Oakland Citizen, appeared before the Board 

to present some personal ideas he had to increase employment. President Lockhart thanked 

Mr. Williams for his interest in the community and of the efforts the Port was making in this 

area. 

seconded. 



March 1, 1994 - 18 -




The meeting, formal portion, was held on Tuesday, March 15, 1994, at the hour of 




received a report on the Port's Policy Regarding Professional Services Contracts and Change 

Orders to Contracts. 

Commissioners present: Broussard, Cole, Kramer, Loh, Ortiz, 




Director of Aviation; Director of Commercial Real Estate; Director of Human Resources; 

General Manager, Maritime Operations; Director of Finance; Director of Policy and 

Strategic Planning; Director of Equal Opportunity; Director of Governmental Affairs; and 

Secretary of the Board. 

The minutes of the regular meeting of October 5, 1993 were approved as submitted 


Commissioner Ortiz, Chair of the Commercial Real Estate, informed the Board that 




President Lockhart, Chair of the Communications & Public Affairs Task Force 


agenda. 

At the hour of 3:45 p.m., Commissioner Ortiz was excused from the meeting.

Authorization to Increase Contract Amount for Security Guard Service at Airport 

was the subject of a memo to the Board from the Deputy Executive Director notifying the 

Board that on June 1, 1993 the Board authorized award of the Security Guard Services 

Contract at the Airport to ABC Security Services, Inc., an Oakland-based, minority-owned 

firm. The contract amount was $680,000.00 annually and commenced on July 1, 1993. 

Expenditures are expected to substantially exceed the contract amount. The average 

monthly cost for security guard service is currently $124,000.00. It is estimated that costs 

for the 1993/4 fiscal year will be $1.3 million. The additional costs are primarily related to 

delays with implementing the Security Access Control System necessitating increased usage 

of security guards. The Engineering staff expects the Security Access Control System to be 

operational on or about July 1, 1994, and this will reduce security guard costs to 

approximately $65,000.00 per month, or $780,000.00 annually. In order to maintain timely 

payments and prevent undue hardship, on March 2nd the Executive Director authorized 

payment of $152,000.00. This payment covered the month of January and the $27,000.00 

balance due for December. It was recommended that the Board authorize an increase in 

the contract amount with ABC Security Services Inc., from $1.4 to $2.1 million, for the 

period July 1, 1993 to June 30, 1995. It was also recommended that the Board ratify the 

payment of $152,000.00 authorized by the Executive Director. The recommendation was 


Approval to Collect and Spend Passenger Facility Charges (PFCs) Related to the 

Second PFC Application at Oakland International Airport was the subject of a memo to 

the Board from the Director of Aviation notifying the Board that on February 23, 1994, the 

FAA approved the Port's second application to impose and use passenger facility charges. 

The FAA approved eleven (11) of the originally proposed thirteen (13) airport projects and 

approved collection of $8.99 Million in PFC revenues. The two projects the FAA 

disapproved were a runway security system and a land records management program. With 

the current collection levels, continuation of the $3.00 PFC for the additional projects 

March 15, 1994 

- 2 -

approved by FAA will extend the collection of PFCs through April 30, 1995. The PFC will 

remain at $3.00 per enplaned passenger. The Airlines will retain $0.12 as their 

administrative fee on each PFC remitted on or before June 28,1994, and $0.08 thereafter. 

In accordance with Charter requirements, PFCs at the Port are considered a tariff which 

must be imposed by ordinance. The proposed action to establish and collect the PFCs is 

in accordance with the California Environmental Quality Act (CEQA) and the State's and 

the Port's Guidelines for the Implementation of CEQA. The evaluation includes both the 

potential impact of extending the PFC collection program for the 11 new projects, and the 

impact of the underlying project. CEQA does not apply to the establishment and approval 

of rates and charges by the Port for the purpose of purchasing supplies, equipment or 

materials or for obtaining funds for capital projects necessary to maintain service within 

existing service areas. However, for the exemption to apply, the Board must incorporate 

written findings in the record setting forth with specificity the basis for the claim of 

exemption. The basis for the exemption is that all but two of the individual projects to be 

funded by the PFCs involve either purchase of supplies, equipment or materials, or capital 

projects necessary to maintain service within existing service areas. The other Runway 

Extension Engineering Planning and Environmental Study, and Airport Signage and Access 

Planning Study, are exempt projects as "planning and feasibility studies". Of the 11 projects 

approved by FAA, four (4) previously have been found to be categorically exempt and an 

appropriate Notice of Exemption for each project has been filed with the County. These 

four projects are: Relocate Taxiway 2, Upgrade Airport Fire Alarm, Upgrade and Apply 

Ramp Sealer, and Install Two Replacement Current Regulators. One additional project has 

been evaluated and a Mitigated Negative Declaration was prepared and a Notice of 

Determination was filed with the County: Improvements to Earhart Road. The remaining 

four projects have been determined to be exempt. It was recommended that the Board 

authorize amending Port Ordinance No. 1149 to extend the $3.00 PFC per enplaned 

passenger at the Airport for the 11 projects recently approved by the FAA for PFC funding. 

March 15, 1994 

-3-

It was also recommended that the ordinance contain findings by the Board under California 

Public Resources Code Section 21080 (b) (8) and State CEQA Guidelines Section 15273 

that the PFC is for the purpose of purchasing supplies, equipment or materials and for 

obtaining funds for capital projects necessary to maintain service within existing service areas 

based upon the description of the individual projects in the Agenda and the Port's PFC 

application. It can also be seen with certainty that there is no possibility that extension of 

collection of the PFC will have a significant effect on the environment. The 


Award of Contract to Furnish and Deliver Two New Airport Runway Constant 

Current Regulators was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the one bid received and recommending award of the 

contract to Flight Light, Inc., the bidder, at $58,001.43. The recommendation was approved 


Plans and Specifications for Repair and Painting of Three Aircraft Passenger 

Loading Bridges, South Airport, MOIA was the subject of a memo to the Board from the 

Deputy Executive Director recommending their approval and authority to advertise for bids 

for the repairs to corroded roof areas of the loading bridges, removal of all other rust and 

damaged paint from exterior surfaces of the loading bridges, and priming and painting the 

exteriors. The project is categorically exempt and does not require the preparation of an 

environmental document. The recommendation was approved on passage of Resolution No. 

94090. 

Approval of an Extension of Right-of-Entry and Indemnity Agreement with August 

Puglia, dba August Insurance Services (#1 Airport Drive, South Airport' was the subject 

of a memo to the Board from the Director of Aviation notifying the Board that the Port 

entered into a Right-of-Entry and Indemnity Agreement dated December 29, 1993 with 

August Puglia, dba August Insurance Services, granting access to the Terminal Areas to 

provide, on a non-exclusive basis, on-call notary public service to Airport passengers and 

March 15, 1994 - 4 -

other persons needing notary public services at the Airport. The rent is $1.00 per year. The 

most frequent request for Notary Public services is from Airport passengers returning to 

Mexico destinations. The on-call Notary Public returns the pager's call and arranges a time 

and place to meet at the Airport. The fee for notary service will not exceed the maximum 

limit of $10 per signature as set by the State of California, plus a fee for time, travel and 

mileage not to exceed $50.00 per trip to the Airport. It was recommended that the Board 

extend the Right-of-Entry and Indemnity Agreement through November 30, 1994. The 


Alameda/Oakland Ferry Agreement Selection of Operator was the subject of a memo 

to the Board from the Director of Commercial Real Estate notifying the Board that the Port 

and the City of Alameda have an agreement to provide ferry service between Oakland- 

Alameda and the City of San Francisco. The agreement has been in effect since March 

1990 and has been renewed for the last three years. The recent renewal agreement is 

effective through March 31, 1994. Operational subsidy funding for the ferry has been 

provided by a combination of fare income and Regional Measure 1 funds which provides 

that 3% of the $0.25 increase in bridge tolls be provided for alternative transportation 

programs such as bicycles and ferries. In addition to the bridge tolls, the Port and the City 

of Alameda (City) are presently providing a 10%® match for the funding of the ferry subsidy. 

In addition, both the Port and the City fund a consultant, Ernest Sanchez, who markets and 

administers the day to day ferry operations at a cost not to exceed $28,000.00 per year for 

each agency. Under the proposed new contract with the Blue and Gold Fleet the subsidy 

will be $500,000.00 per year. The Port of San Francisco dock fees are estimated at 

$50,000.00 per year. MTC is expected to fund 80% of the ferry subsidy and docking costs. 

The Port and the City would each fund 10%. Under the proposed new contract the cost to 

the Port is estimated at $83,000.00 including the consultant costs. Since the ferry operation 

contract is concluding and the new City/Port owned ferry is to be delivered in May, the 

Alameda City Council and the Port authorized the City to seek new bids for the operation 

March 15, 1994 

5

of the ferry service. Only two bidders responded:: Harbor Bay Maritime and the Blue and 

Gold Fleet. It was recommended that the Board authorize renewing the agreement with 

the City of Alameda for one year for the continued operation of the Alameda Oaldand 

Ferry and concur with the Alameda City Council in the selection of the Blue and Gold Fleet 

as the contract operator for the Alameda/Oakland. Ferry Service. The recommendation was 


Jack London Square - C.L. Dellums Amtrak Station Name Adoption was the subject 

of a memo to the Board from the Director of Commercial Real Estate notifying the Board 

of the construction contract for the Amtrak Station and that it was time to establish a formal 

name for the station. After discussion, the Board recommended that the station be named 

"C.L. Dellums Amtrak Station - Jack London Square." The recommendation was approved 


Substitution of Electrical Subcontractor for "Construction of Passenger Rail Station 

Facility. JLS" was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the contract with SHC/MARK Diversified for the construction of the 

Passenger Rail Station Facility, Jack London Square, Oakland, California. SHC/MARK has 

requested Board approval to substitute its subcontractor performing the electrical work on 

the subject contract, because the listed subcontractor, Van Hook Electric, Inc., will not enter 

into a contract to perform the work. It was recommended that the Board approve the 

substitution of Del Monte Electric as the electrical subcontractor for the work. The 


Relocation and Reconditioning of One In-Gate Truck Scale at the Seventh Street 

Marine Container Terminal was the subject of a memo to the Board from the Director of 

Maritime notifying the Board that Marine Terminals Corporation (MTC) operates the 

Seventh Street Terminal facility which has two in-gate truck scales. Terminal services at the 

facility are presently provided for Hanjin Shipping, Hyundai Merchant Marine and Yang 

Ming Line, and the existing two in-gate scales are inadequate for the volume MTC is 

March 15, 1994 - 6 -

currently handling. MTC is requesting the Port provide a third scale for their in-gate lanes. 

There is presently a scale which is not being used at Berth 35, and the approximate cost of 

relocating and reconditioning this scale is $15,000.00. It was recommended that the Board 

authorize the relocation and reconditioning of the in-gate truck scale by MTC at a cost of 

approximately $15,000.00 and authorize reimbursement to MTC at the rate of two and one 

half percent (2-1/2%) of the gross annual tariff revenues from dockage and wharfage 

which accrue from users of the terminal. The recommendation was approved on passage 


First Supplemental Agreement for Geotechnical Engineering Services to Design 

Galbraith Dredge Disposal Site was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the professional services agreement with 

Subsurface Consultants, Inc., (SCI) to provide geotechnical engineering services in 

conjunction with the development of the Lew F. Galbraith Golf Course as a dredge disposal 

site for material from the Corps of Engineers project to deepen the harbor channels to -42 

feet that has been determined to be unsuitable for aquatic disposal. The current maximum 

allowable compensation under the terms of the agreement is $75,500.00, which includes 

$15,000.00 for changes in scope authorized by the Executive Director. The disposal site 

must accommodate an increased quantity of dredge material, and the containment dikes are 

subject to more stringent seismic stability criteria. The Regional Water Quality Control 

Board has also expressed concerns that need to be addressed about the handling of the 

dredge material and how it affects the landfill beneath the golf course. In order to complete 

the additional engineering analyses required by the changes in the Corps' and RWQCB's 

criteria, it is necessary to expand the scope of work and the funds for the work. It was 

recommended that the Board authorize a First Supplemental Agreement with Subsurface 

Consultants, Inc. for the additional geotechnical engineering services with an additional 

$42,500.00 compensation and an additional $15,000.00 available at the discretion of the 

March 15, 1994 

7


94096. 

Increase to Crane Rental Rates at Seventh Street Marine Container Terminal was 

the subject of a memo to the Board from the Director of Maritime notiifying the Board of 

the recently concluded comprehensive review of basic crane rental rates at the Seventh 

Street Marine Container Terminal. This evaluation included Port revenue requirements to 

recover return on investment, competitive conditions among ports and shipping line 

relationships with the Seventh Street Terminal operator, Marine Terminals Corporation. 

It was recommended that the Board based upon this analysis, increase the basic crane rental 

rates for the Seventh Street Terminal. The specific adjustments will raise the rental rates 

for the newer Vulcan Kocks cranes from $475.00 to $500.00 per hour and for the PACECO 

crane from $370.00 to $400.00 per hour. The recommendation was approved on passage of 

an ordinance to print. 

Landlord Waiver Acknowledgement Pertaining to Trans Pacific Container Service 

Corp. Cranes at Berth 30 was the subject of a memo to the Board from the Director of 

Maritime notifying the Board of the agreement by which Mitsui O.S.K. Lines (MOLO) has 

a Nonexclusive Preferential Assignment Agreement for the new Berth 30 Terminal which 

is assigned to Trans Pacific Container Service (Tra Pac). The agreement provides that Tra 

Pac will furnish at its cost and expense two (2) container cranes for use upon the Berth 30 

Terminal. Tra Pac has leased two MITSUI-PACECO container cranes for their Berth 30 

operations. Upon termination of the Agreement the Port will have the option to purchase 

the cranes upon prior written notice to Tra Pac. Tra Pac has submitted on behalf of LTCB 

Trust Company, the lessor of the two container cranes at Berth 30, a "landlord waiver" 

acknowledgement for execution by the Port. The letter acknowledgement protects the Port's 

option to purchase and secondarily assign the cranes. It also ensures the Port of non 

interference and repair of any damage caused by the lessor's removal of the cranes in the 

event of default by Tra Pac under the crane lease. It was recommended that the Board 

March 15, 1994 - 8 -

execute the landlord waiver acknowledgement. The recommendation was approved on 


Approval of Professional Services for Peer Review of Wharf Extension at Berth 68, 

Charles P. Howard Terminal was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the need to lengthen the Charles P. Howard 

Terminal Wharf by 300 feet. Previously, the Board has authorized professional services 

agreements for the preparation of the Environmental Impact Report and for the 

geotechnical investigation. The Port is performing the design using in-house staff. To 

provide assurance that all factors relevant to the design have been considered, it is standard 

practice to retain an independent consultant to perform a peer review of the design work. 

It was recommended that the Board approve the retention of CH2MHi11 to perform the 

peer review with George Fotinos of Ben C. Gerwick, Inc. working as a subconsultant. The 

scope of the peer review includes: review design alternatives and feasibility; assist in 

development of design criteria; attend design review meetings with permitting agencies; 

review of structural analysis, plans, specifications, estimate, construction schedule, and 

buildability; and assist in problem solving during construction. The firm will be 

compensated the actual hours worked up to an agreed upon maximum. The maximum 

payment that can be made under the agreement is $47,000.00 with an additional $15,000.00 

available at the discretion of the Executive Director. The recommendation was approved 


Specifications for Annual Contract for Repairs to Railroad Tracks and Crane Rails 

was the subject of a memo to the Board from the Deputy Executive Director recommending 

their approval and authority to advertise for bids for the annual contract which is renewable 

in one year increments through April 30, 1997. The recommendation was approved on 


Specifications for Annual Contract for Repairs to Docks and Waterfront Facilities 

was the subject of a memo to the Board from the Deputy Executive Director recommending 

March 15, 1994 9

their approval and authority to advertise for bids for the annual contract which is renewable 

through April 30, 1997. The recommendation was approved on passage of Resolution No. 

94100. 

Substitution of Fence Subcontractor for "Construction of Port View Park, Berth 40, 

Seventh Street Terminal w:as the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the contract with Conco Cement Company for the 

construction of Port View Park, and that the listed subcontractor for the chain link fence, 

K.C. Fence, cannot be reached to enter into a contract to perform this work. It was 

recommended that the Board authorize the substitution of Central Fence. Company for the 

chain link fence work. The recommendation was approved on passage of Resolution No. 

94101. 


Human Resources recommended the creation of one new classification and corresponding 

salary grade assignment for the Port-unique exempt classification of "Operating and Capital 

Budget Manager" at Salary Grade 13; the revision of job specifications for the positions of 

Port Junior Financial Analyst, Port Financial Analyst, Port Senior Financial Analyst and 

Port Principal Financial Analyst; and the new assignment of Salary Schedule 226, to the 

classification of "Port Junior Financial Analyst." Also recommended was approval of the 

examination announcement for the position of Port Principal Systems Planning Analyst in 

the Management Information Systems Department of the Financial Division. Further 

recommended was approval of leaves of absence for Deborah E. Hill-Thomas, Intermediate 

Stenographer Clerk, for maternity reasons, for 30 'working days through April 29, 1994; 

Sabrina Del Favero, Senior Secretary, for medical reasons, for 4 working days through 

March 14, 1994; Armando G. Curiel, Power Equipment Operator, for medical reasons, for 

95 working days through June 30, 1994; and Larry S. Forte, Trade Development 

Representative, Marine Commercial Representative IV, for medical reasons, for 130 

working days through August 31, 1994. The recommendations were approved on passage 

March 15, 1994 

- 10 -

of Resolution No. 94102 for job specifications; Resolution No. 94103 for examination. 

announcement; Resolution No. 94104 for leaves of absence; and on an ordinance passed to 

print for creation of position and salary grade assignment. 

Approval of the Audit Contract for Three Years Ending June 30. 1996. with KPMG 

Peat Marwick and Williams was the subject of a memo to the Board from the Director of 

Finance notifying the Board of the selection process endorsed by the Audit and Finance 

Committee to select the Port's outside auditors for three fiscal years ending June 30, 1996. 

It was recommended that the Board authorize the preparation and execution of a contract 

with KPMG Peat Marwick and Williams, Adley & Company to audit the Port's consolidated 

financial statements and to examine and report on Federal Grants under the Single Audit 

Act; perform a limited scope audit of the financial statements of the Deferred 

Compensation Plan; audit the Association for the Preservation of the Presidential Yacht 

Potomac; audit the Schedule of Passenger Facility Charge Revenues; and provide assistance 

on applicable projects including related tax and compliance work for fees not to exceed 

$130,500.00, $137,000.00 and $143,875.00 respectively for the next three fiscal years. It was 

further recommended that the Board approve an additional $15,000.00 per year for the three 

years to cover specific projects outside the audit scope of work as requested by the 


94105. 

Approval of the Financial Advisor Contract for Two Years with Two One-Year 

Options with Fullerton and Friar, Inc., and LS Financial Group. Inc. was the subject of a 

memo to the Board from the Director of Finance recommending approval to enter into an 

agreement with Fullerton & Friar, Inc., and LS Financial Group, Inc., as co-financial 

advisors for a period of two years with two one-year options. Fullerton & Friar will serve 

as the primary financial advisor and is responsible for ensuring that a sub-contractor with 

maritime experience is retained out of their seventy percent of the fees. The co-financial 

advisors will be providing the Port with the following services initially: development of a 

March 15, 1994 

- 11 -

long-term strategic financial plan for the Port incorporating the operating results, the cash 

flow, and the capital improvement program; financial and business analysis of major capital 

projects; development of selection process and selection criteria for the capital improvement 

program; assistance in evaluating, structuring and marketing potential refundings, new 

money issues and other financing transactions, including selecting an underwriting team; 

development of any needed financial policies; and other financial advisory services as 

needed. The recommendation was approved on passage of Resolution No. 94106. 

Travel Authorization to Taiwan and Hong Kong. B.C.C. • and London. England was 

the subject of a letter to the Board from the Secretary of the Board recommending approval 

for the travel of President James B. Lockhart, Commissioner David Kramer, Director of 

Maritime, Leo R. Brien, and the General Manager of Maritime Operations, Ray Boyle, to 

Taipei and Kaohsiung, Taiwan and Hong Kong, B.C.C. on or about the period March 22 to 

29, 1994 to meet with shipping lines. Also recommended was the travel of the Risk 

Manager, Jane Keegan, to London, England on or about the period March 26 to 31, 1994 

to meet with Port Underwriters for renewals of crane and port liability insurance. The 


Authorization to Procure 8 Motor Vehicles through Open Market Procurement was 

the subject of a letter to the Board from the Deputy Executive Director notifying the Board 

of the previous bids received for 8 vehicles, which consisted of 4 cabs and chassis, 2 

passenger vans, 1 forklift and 1 three-wheel scooter. Motor vehicle dealerships are not 

familiar with Port bidding procedures and the proposals could not be evaluated before the 

bids expired. It was recommended that the Board find it to be in the best interest of the 

Port to authorize the Executive Director to negotiate the purchase of the 8 motor vehicles 

on the open market at a total price of $184,500.00. The recommendation was approved on 


vote: 


March 15, 1994 

- 12 -


Noes: None 




FINDING AND DETERMINING THAT A PROPOSED FIRST SUPPLEMENTAL 

AGREEMENT WITH ABC SECURITY GUARD SERVICES FOR SECURITY 

GUARD SERVICES AT THE METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES; 

AND AUTHORIZING EXECUTION OF SAID FIRST SUPPLEMENTAL 

AGREEMENT." 


AWARDING CONTRACT TO FLIGHT LIGHT, INC., TO FURNISH AND 

DELIVER TWO NEW AIRPORT RUNWAY CONSTANT CURRENT 

REGULATORS, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 

OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF BONDS TO BE 

PROVIDED IN CONNECTION THEREWITH." 


APPROVING PLANS AND SPECIFICATIONS FOR REPAIR AND PAINTING 

OF THREE AIRCRAFI . PASSENGER LOADING BRIDGES, SOUTH FIELD, 

METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, OAKLAND, 



APPROVING AND AUTHORIZING THE EXTENSION OF THAT CERTAIN 

RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT WITH AUGUST 

PUGLIA DOING BUSINESS AS AUGUST INSURANCE SERVICES." 


APPROVING AND AUTHORIZING EXECUTION OF AMENDED 

AGREEMENT WITH CITY OF ALAMEDA FOR CONTINUED OPERATION 

OF FERRY SERVICE BETWEEN JACK LONDON SQUARE, THE CITY OF 

ALAMEDA AND SAN FRANCISCO, AND APPROVING THE CITY OF 

ALAMEDA'S SELECTION OF BLUE AND GOLD AS THE FERRY 

OPERATOR." 


NAMING THE NEW RAILROAD STATION IN JACK LONDON SQUARE THE 

C.L. DELLUMS AMTRAK STATION - JACK LONDON SQUARE. 

March 15, 1994 

- 13 -


AUTHORIZING SUBSTITUTION OF ELECTRICAL SUBCONTRACTOR FOR 

"CONSTRUCTION OF PASSENGER RAIL STATION FACILITY, JACK 

LONDON SQUARE," OAKLAND, CALIFORNIA." 


APPROVING THE COST REIMBURSEMENT FOR RELOCATING AND 

RECONDITIONING ONE IN-GATE TRUCK SCALE UNDER MANAGEMENT 

AGREEMENT WITH MARINE TERMINALS CORPORATION." 



AGREEMENT WITH SUBSURFACE CONSULTANT, INC. FOR 

ENGINEERING CONSULTING SERVICES CONSTITUTES PROFESSIONAL 

OR SPECIALIZED SERVICES; AND AUTHORIZING EXECUTION OF SAID 

FIRST SUPPLEMENTAL AGREEMENT," 


AUTHORIZING EXECUTION OF WAIVER ACKNOWLEDGEMENT LE 1 1ER 

AGREEMENT WITH LTCB TRUST COMPANY." 



CH2M HILL CALIFORNIA INC. FOR ENGINEERING DESIGN CONSULTING 





APPROVING PLANS AND SPECIFICATIONS FOR FURNISHING LABOR 

MA I E,RIALS AND EQUIPMENT FOR RECONDITIONING, REPAIRING AND 

RECONSTRUCTING PORT OF OAKLAND RAILROAD TRACKS AND 

CRANE RAILS FOR THE PERIOD COMMENCING MAY 1, 1994 AND 

ENDING APRIL 30, 1995, 1996 OR 1997, OAKLAND, CALIFORNIA; AND 

CALLING FOR BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS FOR FURNISHING PILE 

DRIVER CREW FOR REPAIRS TO PORT OF OAKLAND DOCKS AND 

WATERFRONT FACILITIES FOR THE PERIOD COMMENCING MAY 1, 1994 

AND ENDING APRIL 30, 1995, 1996 OR 1997; AND CALLING FOR BIDS 

THEREFOR." 

March 15, 1994 - 14 -


AUTHORIZING SUBSTITUTION OF FENCE SUBCONTRACTOR FOR 

"CONSTRUCTION OF PORT VIEW PARK, BERTH 40, SEVENTH STREET 

I ERMINAL," OAKLAND, CALIFORNIA." 


APPROVING JOB SPECIFICATIONS FOR THE POSITIONS OF PORT JUNIOR 

FINANCIAL ANALYST, PORT FINANCIAL ANALYST, PORT SENIOR 

FINANCIAL ANALYST AND PORT PRINCIPAL FINANCIAL ANALYST." 


APPROVING EXAMINATION ANNOUNCEMENT FOR THE POSITION OF 

PORT PRINCIPAL SYSTEMS PLANNING ANALYST." 




FINDING AND DETERMINING 

ERMINING THAT A PROPOSED AGREEMENT WITH 

KPMG PEAT MARWICK AND WILLIAMS AND ADLEY & COMPANY, 

JOINTLY, FOR AUDIT SERVICES CONSTITUTES PROFESSIONAL OR 


AGREEMENT." 



FULLERTON & FRIAR, INC. AND LS FINANCIAL GROUP, INC. FOR 

FINANCIAL CONSULTING SERVICES CONSTITUTES PROFESSIONAL OR 

SPECIALIZED SERVICES AND WAIVING COMPETITIVE BIDDING; AND 

AUTHORIZING EXECUTION OF SAID AGREEMENT." 




FINDING AND DETERMINING THAT IT IS IN THE BEST IN IEREST OF 

THE PORT TO PROCURE EIGHT MOTOR VEHICLES WITHOUT 

COMPETITIVE BIDDING AND AUTHORIZING SAID PROCUREMENT ON 

THE OPEN MARKET." 


GRANTING OAKLAND PORTSIDE ASSOCIATES PERMISSION TO 


March 15, 1994 - 15 -

Port Ordinance No. 3201 being, "AN ORDINANCE ADDING NEW SECTION 1.19 

TO PORT ORDINANCE NO. 1047 ESTABLISHING REGULATIONS CONCERNING 

SMOKING IN THE'TERMINAL BUILDING COMPLEX AT METROPOLITAN 

OAKLAND INTERNATIONAL AIRPORT AND PRESCRIBING PENALTIES FOR 

VIOLATIONS," and Port Ordinance No. 3202 being, "AN ORDINANCE AMENDING 


AND RENTAL RATES,' and Port Ordinance No. 3203 being, "AN ORDINANCE 

AMENDING PORT ORDINANCE NO. 867 TO CREATE ONE NEW POSITION OF 

PORT PRINCIPAL SYSTEMS PLANNING ANALYST AND AMENDING PORT 

ORDINANCE NO. 3195 TO CORRECT A SALARY SCHEDULE AMENDMENT," were 

read a second time and passed by the following vote: 


Noes: None 


Absent: Commissioner Ortiz - 1 Port Ordinance No. _ being, "AN 

ORDINANCE ESTABLISHING A PASSENGER FACILITY CHARGE AND ADDING 

SECTION 28 TO PORT ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE 

OF FACILITIES AT ME 1 ROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 

AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION 

THEREWITH," and Port Ordinance No. being, "AN ORDINANCE AMENDING 


AND RENTAL RATES," and Port Ordinance No. being, "AN ORDINANCE 

AMENDING PORT ORDINANCE NO. 867 TO CRATE A NEW POSITION OF 

OPERATING AND CAPITAL BUDGET MANAGER AND TO ASSIGN THE 

POSITION OF PORT JUNIOR FINANCIAL ANALYST TO SALARY SCHEDULE NO. 

226," were read a first time and passed to print by the following vote: 

March 15, 1994 - 16 -

Ayes: Commissioners Broussard, Cole, Kramer, Loh, Vohs 

Noes: None 



At the hour of 4:45 p.m., the Board entered into closed session for the purpose of 

a conference with legal counsel on existing litigation pursuant to subdivision (a) of 

Government Code Section 54956.9; Fred Grimes v. Port of Oakland, Alameda County 

Superior Court No. 667788-2, Port Case No. 90-04-C (CJS); and reconvened in open session 

at the hour of 5:06 p.m. at which time the meeting was adjourned on a motion duly made 

and seconded. 

March 15, 1994 

- 17 -




The meeting, formal portion, was held on Tuesday, April 5, 1994, at the hour of 



Commissioners present: Cole, Broussard, Kramer, Vohs, Ortiz and 


Commissioners absent: Commissioner Loh - 1 


Chief Engineer; Director of Aviation; Director of Commercial Real Estate; Director of 

Human Resources; Director of Maritime; Director of Equal Opportunity; Director of 

Governmental Affairs; Director of Public Affairs; and Secretary of the Board. 

The minutes of the regular meeting of October 19, 1993 and the special meeting of 

October 26, 1993 were approved as submitted and ordered filed. 

Commissioner Broussard, Chair of the Aviation Committee, informed the Board that 


Commissioner Ortiz, Chair of the Customer Relations and Employment Development 

Committee, infoimed the Board that the committee had met and reviewed their current 

agenda. 




that the committee had met and reviewed their current agenda.

Increases in Costs for. Design and Construction of Gate 26A, Terminal II. South 

Airport was the subject of a memo to the Board from the Director of Aviation notifying the 

Board of the several contracts for the design and construction of a Gate 26A holdroom in 

Terminal II. The holdroom addition is needed to ensure more convenient accommodations 

of Southwest Airlines' passengers. Southwest Airlines has since requested that the holdroom 

be constructed at the second level rather than at the ground level as originally planned and 

that the Port expedite the completion of the holdroom addition by three weeks. The 

request will result in additional costs. The contract with The Ratcliff Architects (TRA) to 

provide architectural services for a ground level holdroom was approved for a maximum 

payment of $130,000.00, with the Executive Director authorized to approve $32,000.00 in 

additional work. It is proposed that the total cost of the consultant contract with TRA be 

increased to $285,000.00. This is based upon changes in scope of the work which arose due 

to opportunities to construct a second level holdroom of increased square footage; designing 

for two separate phases of construction contracts, to expedite the project completion date; 

and requiring full-time consultant presence at the site during much of the construction of 

Phase II due to the accelerated completion date. The contract with Vitton Construction 

Company, Inc. for the second phase of construction of Gate 26A was awarded for 

$1,098,000.00. Staff has negotiated a change order in the amount of $45,000.00 to direct the 

contractor to accelerate the construction activities and complete the project by May 27, 

1994. In order to meet the expedited schedule and to reduce overall costs, Southwest has 

agreed to procure and install a used loading bridge and 400Hz power unit to meet Port 

specifications. It is proposed for the Port to reimburse Southwest for the cost of the loading 

bridge, not to exceed $350,000.00. It was recommended that the Board approve a change 

order to Vitton Construction Company in the amount of $45,000.00 to change the contract 

completion date to May 27, 1994, and to provide for liquidated damages of $2,250.00 per 

calendar day for the period between May 28, and June 16, 1994; authorize the modification 

to the agreement with The Ratcliff Architects for architectural design services to increase 

April 5, 1994 

- 2 -

the scope of services and compensation; and approve the reimbursement to Southwest of 

an amount not to exceed $350,000.00 for the purchase of a loading bridge and 400Hz power 

unit. After discussion concerning total costs, the recommendation was approved on passage 

of Resolution No. 94110 for purchase of loading bridge; Resolution No. 94111 for contract 

modification; and Resolution No. 94112 for change order. 

Rescinding Award of Contract. Construction of Right Turn Lane, Airport Drive to 

Neil Armstrong Ai ort MOIA was the subject of a memo to the Board from 

the Deputy Executive Director notifying the Board of the two bids received for the project 

and that the contract was awarded on September 7, 1993 to Riley & Sons Construction, Inc., 

the low bidder at $40,000.00. The purpose of the project was to reduce outbound traffic 

congestion at this intersection by providing a free right-turn lane for rental cars being 

returned to the National and Avis rental car lots. As the congestion is greater during the 

holiday season, the project was scheduled to be completed by mid-November, before 

Thanksgiving and the start of the 1993 holiday season. Riley notified the Port that they 

were having problems obtaining insurance and when the contract was not executed and 

timely returned by Riley, it became clear that the work could not be completed before the 

beginning of the holiday season. Staff then discussed with Riley the possibility of Riley 

holding its bid until after the holiday season and the winter months so the work could be 

performed with less disruption to Airport traffic and during better weather. No agreement 

was reached on the matter and the staff is currently preparing plans and specifications for 

a separate Capital Improvement Project to overlay portions of Airport Drive, including the 

intersection with Neil Armstrong Way. It is more desirable to combine the right-turn lane 

project at Neil Armstrong Way into the larger Airport Drive project, so as to maximize the 

coordination of all construction activities in Airport Drive and minimize disruption of traffic 

to and from the Airport. It was recommended that the Board rescind the award of contract 

and that the bid security be returned to Riley & Sons Construction, Inc. The 


April 5, 1994 3

First Amendment to the June 8. 1992. Memorandum of Understanding between the 

Port of Oakland and Audubon Society and First Amended Cooperative Agreement with the 

U.S. Department of Agriculture. Animal Control for Red Fox Trapping at the Oakland 

Airport was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the Memorandum of Understanding with the Golden Gate Audubon 

Society for the one-time removal of non-game predatory mammals from the Airport. The 

project was to provide for the removal of the non-native red fox to protect the State- and 

Federal-listed endangered California least tern, which nests at the Oakland Airport. The 

Port and Audubon agreed to jointly pay for these trapping services, at a cost not to exceed 

$6,000.00, or $3,000.00 each. During 1992, and into early 1993, the U.S. Department of 

Agriculture, Animal Damage Control, captured seven red foxes, four feral cats and two 

striped skunks. To date, ADC has invoiced the Port for the total amount of $2,686.80 for 

trapping services (leaving $3,313.20 unspent). The agreement also provided for up to 

$5,000.00 in funds for Port staff to remove non-native vegetation from the least tern colony. 

To date, Airport Facilities staff has incurred $1,417.20 in such expenses, leaving a residual 

budget of $3,582.80. Both the agreements have expired and the parties have agreed that 

extending the agreement for the 1994 nesting season would be desirable. The total 

estimated cost of the trapping and vegetation removal efforts will not exceed $11,000.00. 

The budget has a residual of up to $6,896.00 ($1,656.60 of which would be reimbursable by 

Audubon). It was recommended that the Board authorize a First Amendment to the June 

8, 1992, Memorandum of Understanding by and among the Port of Oakland and the Golden 

Gate Audubon Society for red fox trapping at the Oakland Airport; and enter into a First 

Amended Cooperative Agreement with the U.S. Department of Agriculture, Animal 

Damage Control, for red fox trapping at the Oakland Airport. The recommendation was 


A+ royal for Submittal of AIP-16 A licatiion to Federal Aviation Administration 

(FAA) was the subject of a memo to the Board. from the Deputy Executive Director 

April 5, 1994 

-4-

ecommending approval to submit the AIP-16 Grant Application to the Federal Aviation 

Administration for the construction of aircraft apron between Taxiway 0 and Runway 15/33. 

The total estimated cost of the aircraft apron project is $3,567,440.00, with the Port's share 

at $692,440.00. The FAA share under this grant (ATP-16) is estimated at $2,875,000.00. 

The Port share is proposed to be funded by the Passenger Facility Charges Program. The 


Ratification of the Submittal of Preapplication to Federal Aviation Administration 

(FAA) was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that the Port has been notified by the FAA that discretionary funds may 

be available under the AIP for this federal fiscal year for the Port's use in a noise insulation 

program. The FAA established a deadline of March 31, 1994, for submittal of 

preapplication for this year's discretionary funds and it was recommended that the Board 

ratify the submittal of A1P-17 preapplication to the Federal Aviation Administration for the 

Noise Insulation Program project. The estimated cost is $11,925,000.00 with the FAA's 

share at $9,610,358.00 and the Port's share at $2,314,642.00. The recommendation was 


Approval of Supplement No. 1 to Contract for Removal of Rubber Deposits from 

Runways for the Period Commencing i 1 1994 and Ending February 28. 1995. 1996, 

or 1997. MOIA was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that the contract was awarded to Rampart Waterblast, Inc. The firm 

has been performing this work under purchase orders and they were the only bidder for the 

specialized work of the contract. The contract specifications for this work allowed a 

Property Damage Liability insurance deductible in an amount not to exceed $10,000.00. 

Rampart Waterblast, Inc. can only provide insurance with $50,000.00 deductible amount, 

which amount, given the assets of this contractor, is acceptable to the Port's Risk Manager. 

It was recommended that the Board approve the supplement to the contract which provides 

April 5, 1994 5

for the higher insurance deductible amount. The recommendation was approved on passage 


Sixth Supplemental Agreement Between the Port of Oakland and Roberts, Roach and 

Associates for Air Service Development was the subject of a memo to the Board from the 

Director of Aviation recommending approval to execute the Sixth Supplemental Agreement 

with Roberts, Roach and Associates to provide air service consultant service for an amount 

not to exceed $50,000.00 for fiscal year 1994. The work completed in fiscal year 1994 

includes proposal presentations to TAESA Airlines and Alaska Airlines for new services to 

Mexico, and passenger air service surveys for Chicago and Mexico which will be utilized in 

future air carrier proposals. Several additional tasks to be accomplished this fiscal year 

include a proposal to Korean Air Lines; TAESA Airlines additional service proposal; 

American Airlines Chicago service proposal; and Southwest Airlines/Morris Airlines service 

enhancement proposal. The recommendation was approved on passage of Resolution No. 

94118. 

Approval of New License and Concession Agreement with Westrim Credit Services, 

Inc., dba Quantum Courier (8135 Earhart Road. North Airport) was the subject of a memo 

to the Board from the Director of Aviation recommending approval of a new agreement to 

cover 2,778 square feet of shop space, 2,079 square feet of apron space and 1,800 square 

feet of paved parking in and adjacent to Building L-606, North Airport, at $1,376.64 per 

month, effective March 10, 1994. The recommendation was approved on passage of 


Recommendation to Approve Second Supplemental Agreement to Lease with Dongary 

Investments. Ltd. was the subject of a memo to the Board from the Director of Commercial 

Real Estate notifying the Board that Dongary has a ground lease on 9.43 acres located at 

2225 Seventh Street. Sealand, ANR, and Northwest Transport sublet from the lessee and 

the property usage is for container storage and trucking. On June 30, 1992, Dongary 

exercised its option to extend the lease for a term of 25 years and there are no remaining 

April 5, 1994

options. The Middle Harbor Road realignment project requires that the existing joint use 

driveway located outside of the leased area be relocated inside the leased area reducing this 

area by approximately .10 acres. In accordance with the lease provision, the rental rate 

adjustment is based on 7% of the fair market land value of $8.50 per square foot. It was 

recommended that the Board approve the Second Supplemental Agreement to the lease 

between Dongary Investments, Ltd. and the Port. The 25-year agreement provides for a 

commencement date of October 1, 1993 to September 30, 2018, covering 405,470.8 square 

feet, at $20,105.00 per month. It was noted that after careful analysis of the cost and the 

future value of purchasing the Dongary leasehold instead of renewing the lease, it was 

concluded that finalizing the option to extend the lease is currently the best action. With 

limited funds and no urgent use of the property, priority projects would become the source 

of the buy out allocation. Another consideration is that the lessee has not indicated a 

willingness to sell which could lead to protracted negotiations and the possibility of 

litigation. The recommendation was approved on passage of an ordinance to print. 

Authorization to Execute an "Exclusive Listing Agreement" with CB Commercial Real 

Estate Group, Inc. for the Marketing and Leasing of the Vacant Second Floor Office Space 

in Port Building No. F-107 was the subject of a memo to the Board from the Director of 

Commercial Real Estate recommending approval to execute an "Exclusive Listing 

Agreement" with CB Commercial Real Estate Group, Inc. for the marketing and leasing of 

the second floor of Building F-107. Port Building F-107 (the former Port Administrative 

offices), located at 66 Jack London Square, contains 71,000 rentable square feet of office 

space on the second and third floors. The entire third floor (30,500 square feet) is currently 

occupied by the Alameda Newspaper Group. The proposed Listing Agreement would 

contain the following major terms and conditions: the term of the agreement would be for 

one-year; the agent would coordinate all leasing activities with the designated real estate 

staff person, the Port Attorney's office, and the design/construction staff as necessary to 

implement the leasing of space and the preparation of documents; the agreement shall not 

April 5, 1994 7

apply to any leasing prospect that was in contact with the Port prior to the commencement 

of the agreement; and the payment of all commissions will be according to the Port's 

established policy and procedures for the payment of commissions to real estate brokers. 

In addition, to be consistent with standard industry practice, the staff requests that the Board 

approve the payment of a full commission to the procuring broker. This could potentially 

result in the payment of a 150% commission between the listing broker and an outside 

procuring broker. The recommendation was approved on passage of Resolution No. 94120. 

Plans and Specifications to Regrade Pavers and Utility Boxes on Broadway between 

Embarcadero and Water Street was the subject of a memo to the Board from the Deputy 

Executive Director recommending their approval and authority to advertise for bids. The 

scope of work consists of the removal and reinstallation of approximately 4,200 square feet 

of interlocking pavers and the regrading of six utility boxes. The regrade of pavers and 

utility boxes is necessary due to unequal settlement and will eliminate pedestrian tripping 

hazards and restore drainage patterns in the area. The project is categorically exempt and 

does not require the preparation of an environmental document. The recommendation was 


Authorization to Execute Joint Intermodal Terminal Project Memorandum of 

Understanding with Southern Pacific Transportation and Union Pacific Railroad was the 

subject of a memo to the Board from the Director of Maritime notifying the Board of the 

development of a Join Intermodal Terminal which will consolidate the operations of the 

Southern Pacific Transportation Company and the Union Pacific Railroad into a single 

jointly-operated facility. Previously the Port entered into an agreement with CALTRANS 

which will provide funding for preliminary engineering and environmental documentation 

for the proposed JIT under the Intermodal Surface Transportation Efficiency Act. This 

agreement will provide up to $2.4 million in federal funding with the Port providing 

$600,000.00 in local matching funds. A Memorandum of Understanding has been negotiated 

with the two railroads which formally defines the responsibilities to be undertaken which will 

April 5, 1994 8

esult in an operating plan and a preliminary engineering design for the facility. These 

products will become the basis of a project cost/benefit analysis and for final negotiation 

of an agreement with the railroads for the construction, operation and maintenance of the 

JIT. Under the terms of the agreement, the Port will contract and administer any and all 

project contracts. When the operating plan is complete and approved by the railroads, a 

subsequent request for proposals will be prepared to develop a preliminary facility design 

based upon the operations plan. It was recommended that the Board authorize the 

execution of the Memorandum of Understanding with the Southern Pacific Transportation 

Company and the Union Pacific Railroad for the development of the Join Intermodal 

Terminal. The recommendation was approved on passage of Resolution No. 94122. 

Approval of Change Order for Processing Hazardous Material from Howard Gate 

Modifications was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the contract with Aztec Consultants, dba Aztec Constructors, for the 

gate modifications at the Charles P. Howard Terminal, at a lump sum and unit prices 

totalling $718,000.00. The work consists of reconfiguring the gate area of the terminal to 

reduce track queuing in the adjacent public streets during times of peak demand. While 

performing excavation work at the site, the contractor encountered contaminated soil 

containing hazardous levels of polynuclear aromatic compounds and lead. The contractor 

was directed to prepare a Worker Health and Safety Plan to address the work involving the 

contaminated soil. The contractor has hired a new subcontractor who can provide workers 

with the required 40 hours of safety training to work with the contaminated materials and 

to work in areas exposed to contamination. Because of the need to have the new gate 

facility in operation when COSCO Line begins calling at Howard Terminal on May 3, staff 

has directed the contractor to accelerate the construction schedule to try to complete major 

portions of the work by April 30, 1994 to allow the tenant's intercom and camera vendors 

to complete their interfaces. It was recommended that the Board approve a change order 

for an estimated cost of $365,000.00 for reimbursement of additional costs associated with 

April 5, 1994 - 9 -

the presence of contaminated materials at Howard Terminal. The recommendation was 


Approval of Change Order to the Contract for Raising Paceco Crane X422 and 

Relocating it to Howard Terminal was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the contract with PACECO Corporation for 

upgrading and relocating crane X422 from Berth 38 to Howard Terminal in order to meet 

the need for an additional crane required at Howard Terminal by April 1, 1994. The 

contract with PACECO Corporation became effective on November 4, 1993 at a lump sum 

price of $2,381,000.00. The work of the contract includes raising the crane 26 feet to 

provide a lift height of 100 feet, changing the rail gauge from 96 feet to WO feet, replacing 

the crane operator's cab, increasing the hoisting speed, installing a man lift, changing the 

power pick-up system, relocating the crane from Berth 38 to Howard Terminal, and other 

minor modifications. Previously, the Board ratified a change order for $409,110.00 for snag 

load protection system and a new headblock and telescopic spreader with 20'/40'/twin 20' 

container handling capabilities requested by the tenant. The tenant has now requested 

replacement of the main trolley festoon system, modification of the spreader baloney cable, 

replacement of existing gate safety chains with self-closing walkway gates, and replacement 

of the antiquated communication system. During the work, severe rust damage was 

discovered inside the portal beam around the bolted connection plate on legs #1 and #3. 

The rust needs to be removed and the bolts replaced. Paceco has submitted a price for all 

the additional work of $96,610.00, and it was recommended that the Board approve a 

change order in that amount for the work. The recommendation was approved on passage 


Plans and Specifications to Install Roof Drains and Drainage Crickets, Building C- 

127, 700 Ferry Street was the subject of a memo to the Board from the Deputy Executive 

Director recommending approval and authority to advertise for bids. The work consists in 

general of installing new roof drains, roof curbs with scuppers, and drainage crickets and 

April 5, 1994 - 10 -

includes reroofing and fleshings on the affected portion of the roof only. The project is 



Plans and Specifications to Repair Fishing Pier, Middle Harbor Park was the subject 

of a memo to the Board from the Deputy Executive Director recommending their approval 

and authority to advertise for bids. The work consists in general of removing a section of 

decking, constructing a new shoreline foundation and replacing the decking for the Middle 

Harbor Park fishing pier. The existing foundation has been undermined by bank erosion 

and no longer provides support for the pier structure. The project is categorically exempt 

and does not require the preparation of an environmental document. The recommendation 

was approved on passage of Resolution No. 94126. 

Plans and Specifications to Construct Security Fencing for the Period Commencing 

June 1. 1994 and Ending May 31, 1995, 1996, or 1997 was the subject of a memo to the 

Board from the Deputy Executive Director recommending their approval and authority to 

advertise for bids. The work consists, in general, of constructing security fencing at contract 

unit prices under the direction of the Chief Engineer for the period commencing June 1, 

1994 and ending May 31, 1995, 1996, or 1997. The specifications for the contract include 

a provision allowing the Port to renew the contract in one-year increments through May 31, 

1997. The primary purpose of this contract is to enable the Port to respond rapidly to 

fencing requirements resulting from transfers of property from the Naval Supply Center to 

the Port. The contract will also be used to construct security fencing in other areas of the 

Port as required. The project is categorically exempt and does not require the preparation 

of an environmental document. The recommendation was approved on passage of 


Plans and Specifications for 1994 Structural Inspection and Repair of Paceco Cranes 

X-421. X-423 and X-422 at Berths 37. 38 and 67 was the subject of a memo to the Board 

from the Deputy Executive Director recommending their approval and authority to advertise 

April 5, 1994 - 11 -

for bids. The work consists, in general, of providing mobile cranes, rigging, and scaffolding 

required to gain access to test the welded and bolted joints on the container cranes. The 

work also includes preparing welded joints for non-destructive test inspection by removing 

paint, removing and replacing any defective welds found, and touch-up painting of the 

tested/repair areas. The project is categorically exempt and does not require the 



Supplemental Agreement, MEC Analytical Systems, Inc., for Sediment Testing was 


of the contract with MEC Analytical Systems, Inc. to conduct sediment sampling and 

analysis required by regulatory agencies to obtain permits and certifications before 

conducting any dredging activities. The agreement with MEC became effective on March 

16, 1993, and has a term of two years. The maximum compensation allowed under the 

agreement is $400,000.00. Testing protocols require tiered analysis to be performed on 

sediments if initial test results appear not to meet acceptance criteria for unconfined aquatic 

disposal. Subsequent tiers of tests are used to determine if the initial unacceptable results 

are due to statistical error or are really a concern. Additional tiers of tests may also include 

specific testing required to allow upland disposal of dredged material for material which 

does not meet acceptance criteria for unconfined aquatic disposal. During the first year of 

the MEC contract, a number of dredging projects required additional testing in order to 

determine the most appropriate disposal option. Due to the need to conduct additional 

tests and due to the need to analyze more than the expected number of projects because 

siltation rates exceeded estimates, the Port has exhausted the maximum compensation on 

the MEC contract in the first year of the two year contract. With testing becoming more 

extensive and acceptance criteria becoming more strict, the Port can expect to spend more 

than in past years for dredging and disposal projects, and it was recommended that the 

Board approve a First Supplementary Agreement with MEC, to increase the maximum 

April 5, 1994 - 12 -

contract compensation by $400,000.00, from $400,000.00 to a maximum of $800,000.00. 


Second Supplemental Agreement, Engineering Design Services for Berths 8 & 9 

Rehabilitation was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that Berths 8 and 9 and their backup yards are leased from the U.S. 

Army with the provision that lease payments will be accumulated into an escrow account 

to be used solely for maintenance and improvements to the leased area. Projects for 

maintenance and improvements are subject to the Army's approval. The Port has a 

professional services agreement with I.C.F. Kaiser Engineers to provide professional 

engineering services in conjunction with the rehabilitation of the back-up yard at Berths 8 

& 9. The current maximum allowable compensation under the terms of the agreement as 

modified by the First Supplemental Agreement and the Executive Director's approval is 

$612,000.00. There have been several previous changes in the scope of services required 

from Kaiser. The schedule was impacted by the closing of the base to non-military activities 

during Operation Desert Storm and by the Army's contract to rehabilitate the wharfs at 

Berths 8 & 9. The Army's technical reviews have resulted in revisions to the railroad, 

electrical system, drainage, and paving plans. The Army has now reviewed their final 

requirements, and it was recommended that the Board approve a Second Supplemental 

Agreement to increase the allowable compensation to the consultants by $48,500.00 and to 

authorize the Executive Director to approve up to an additional $30,000.00 in future changes 

in scope, for a total o $690,500.00. The recommendation was approved on passage of 


Approval of Second Su pplemental Agreement for Professional Services with Nordhav, 

Inc., (d.b.a. Baseline Environmental Consulting) for Soil Disposal/Groundwater 

Investigation, 196 Burma Road (CAN Transport) was the subject of a memo to the Board 

from the Executive Director notifying the Board of the contract with Nordhav, Inc. for 

consultant services in connection with the classification and remediation of contaminated 

April 5, 1994 

- 13 -

soils at 196 Burma Road (CAN Transport). The original agreement provided for a total 

maximum compensation of $50,000.00, and it was based upon available site information at 

the time of the contract execution. Exact costs were impossible to determine at that time 

because the extent and characteristics of the contamination were not determined. On 

January 21, 1992, the Board approved the execution of a Supplemental Agreement with 

Baseline to obtain a waiver of the regulations from the Department of Toxic Substances 

Control to reclassify the waste from hazardous to non-hazardous waste, and to treat the soils 

to allow cost-effective disposal. The maximum compensation for this work was $60,000.00 

which increased the total contract compensation to $110,000.00. Although Baseline was able 

to reclassify the waste as non-hazardous, the soil treatment process was only partially 

successful. The soil was contaminated with both petroleum hydrocarbons and lead. The 

treatment reduced the hydrocarbons to below regulatory thresholds, whereas the lead 

remained at a concentration requiring disposal to a Class II facility. Baseline and their 

subcontractor have absorbed the cost of the failed treatment, but the Port will have to pay 

for disposal of the material. Additionally, the Port is required to conduct a ground water 

investigation at the CAN Transport site, and it was recommended that the Board authorize 

a Second Supplemental Agreement to provide additional disposal costs at $15,400.00 and 

ground wells, analysis and reporting at $40,000.00, totaling $55,400.00. The new total 

maximum contract compensation would be $165,400.00. The recommendation was approved 


Amendments to and Clarification of the APL Preferential Assignment Agreements 

Pertaining to Secondary Usage by PM & 0 was the subject of a memo to the Board from 

the Director of Maritime Affairs notifying the Board that American President Lines 

conducts operations at the Middle Harbor Terminal. Although the premises are operated 

as one homogenous facility, the area consists of three separate APL (former Seatrain) 

Agreements and two former United States Lines Agreements. Philippines, Micronesia & 

Orient Line is a secondary user of the Middle Harbor Terminal and operates a monthly 

April 5, 1994 

- 14 -

service between Los Angeles, Oakland, Hawaii and ports in Micronesia, the Philippines and 

the Far East. Under the compensation terms of the Agreements with APL, when there is 

a five year term commitment to use the facility as a regularly published Northern California 

port of call, the Port will receive 40% of the tariff rates. The Board previously authorized 

modification to the Port APL Agreement which provides that in lieu of the published 

wharfage rates in the Port's marine terminal tariff, PM & 0 as a secondary use shipping line 

at the Middle Harbor facility will be assessed 80% of such wharfage rates for tropical fruit 

shipments to OCP destinations. This action significantly helped PM & 0 capture additional 

tropical fruit cargo so that it would move through Oakland. Upon review of the 

documentation, the Supplemental Agreement applies only to the former USL portion of the 

Middle Harbor Terminal, and it was recommended that the Board approve of the 

amendments to the other agreements covering the Middle Harbor Terminal. The 


Award of Contract, Painting of Yard Light Poles, Berth 24, Outer Harbor Terminal 


Board of the six bids received and recommending award of the contract to W.G. Thompson 

Corp., the low bidder, at $22,764.00. The recommendation was approved on passage of 


Rejecting of Bid and Authorization to Negotiate Contract for Touch-Up Painting of 

Two Alliance Cranes, X441 and X442, Berths 62 and 63, Middle Harbor Terminal was the 


of the one bid received from Redwood Painting Company, Inc., which is considered to be 

excessive at $573,000.00. It was recommended that the Board reject the bid from Redwood 

Painting Company, Inc., as excessive, and that the bid security be returned to the bidder. 

It was also recommended that the Board find it to be in the best interest of the Port to 

April 5, 1994 - 15 -

dispense with formal bidding procedures and negotiate on the open market for the work. 



Resources recommended the appointment of Douglas Waring, as Operating and Capital 

Budget Manager, at $6,667 per month, effective April 7, 1994; Rita L. Yalung, as Port 

Principal Financial Analyst, at $5,027 per month, effective April 7, 1994; and Bre' Badgett, 

Alexia Hall, Eva Lee, Felicia Patterson, Valorie Spivey, and Kevin Young, all as High 

School Interns, in coordination with the Oakland Mayor's Summer Jobs Program. Also 

recommended was the creation of classification and corresponding salary schedule 

assignment for the Port-unique Civil Service classification of "Land Records Management 

Coordinator", at Salary Schedule 252.42; approval and revision of job specifications for the 

Port-unique Civil Service classification of "Land Records Management Coordinator" and the 

revision of job specifications for the existing Port-unique Civil Service classification of "Land 

Records Programmer"; and amendment of Rule 8.07 of the Personnel Rules and Procedures 

of the Port of Oakland which grants the Executive Director the authority to approve 

requests for unpaid leave as covered by the Federal Family and Medical Leave Act. 

Further recommended was the examination announcement for the Port-Unique Civil Service 

classification of "Power Equipment Operator"; and a request for a medical leave of absence 

for Sabrina Del Favero, Senior Secretary, for 25 working days through and including April 

18, 1994. The recommendations were approved on passage of Resolution No. 94135 for 

appointments, Resolution No. 94136 for job specifications, Resolution No. 94137 for 

examination announcement, Resolution No. 94138 for leave of absence; and on an 

ordinance passed to print for amending Personnel Rules and Procedures. 

Consulting Service Agreement for Review and Validation of the Port of Oakland's 

5-Year Long Range Information System Plan with California Computer Options/KC/Future 

Planning. Inc. was the subject of a memo to the Board from the Director of Finance 

recommending approval to enter into a contract with California Computer 

April 5, 1994 - 16 -

Options/KC/Future Planning Inc. to provide professional services for the Finance Division, 

MIS Department, with costs not to exceed $65,000.00, to review and validate the Long 

Range Information System Plan. This effort is to provide information systems and services 

direction and guidance in its work plan in support of Port operations for the next 5 years. 


Approval of Specifications for FurnishinglI 

Athor, Materials and Equipment for 

Paving. Grading and Associated General Contractor Services for the Period commencing 

June 1. 1994 and Ending May 31, 1995. 1996, or 1997 was the subject of a memo to the 


advertise for bids. The contract will be used for small projects where it is uneconomical to 

follow the nom al contracting process and for projects requiring quick response such as 

emergency pavement repairs. The recommendation was approved on passage of Resolution 

No. 94140. 

Approval of Specifications for Removal and Disposal of Hazardous Waste, 

Designated Waste, and Other Contaminated Materials was the subject of a memo to the 


advertise for bids for the renewable annual contract. Hazardous waste and hazardous 

materials are generated or encountered in numerous Port activities and examples include 

paint wastes and oily wastes from Facilities Department shops; creosoted timbers from wharf 

repairs; oil-soaked absorbent materials from spill cleanups at the Airport, marine terminals 

and small boat marinas; and various wastes abandoned on Port property. The 



the Board recommending approval for the travel of Commissioner Celso D. Ortiz and the 

Deputy Executive Director, Charles Foster, to Ho Chi Minh City and Hanoi, Vietnam via 

Hong Kong, B.C.C., on or about the period April 16 - 24, 1994 to participate as a sponsor 

April 5, 1994 - 17 -

in the Vietnamerica Expo '94 and for meetings with trade representatives. The 


vote: 


Ayes: Commissioners Broussard, Cole, Kramer, Ortiz, Vohs 

Noes: None 


Absent: Commissioner Loh - 1 


AUTHORIZING REIMBURSEMENT OF BRIDGE INSTALLATION COSTS TO 

SOUTHWEST AIRLINES." 


FINDING AND DETERMINING THAT A PROPOSED FIRST SUPPI .EMENTAL 

AGREEMENT WITH THE RATCLIFF ARCHITECTURAL CONSULTING 

SERVICES CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES; 

AND AUTHORIZING EXECUTION OF SAID FIRST SUPPT EMENTAL 

AGREEMENT." 


APPROVING ISSUANCE OF CHANGE ORDER FOR CONSTRUC 110N OF 

GAPE 26A, STAGE 2, TERMINAL H, BUILDING M-130, SOUTH FIELD, 


CALIFORNIA." 


RESCINDING AWARD OF CONTRACT TO RILEY & SONS CONSTRUCTION, 

INC., FOR CONSTRUCTION OF RIGHT TURN LANE, AIRPORT DRIVE TO 

NEIL ARMSTRONG WAY, METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT, OAKLAND, CALIFORNIA; AND DIRECTING RETURN OF BID 

BOND TO RILEY & SONS CONSTRUCTION, INC." 


AUTHORIZING EXECUTION OF A FIRST SUPPI .EMENTAL AGREEMENT 

WITH GOLDEN GATE AUDUBON SOCIETY, INC., AND AMENDMENT (1) 

TO AGREEMENT NUMBER 12-34-73-2153 WITH THE UNITED STATES 

DEPARTMENT OF AGRICULTURE, ANIMAL AND PLANT HEALTH 

INSPECTION SERVICE, ANIMAL DAMAGE CONTROL, FOR THE 

REMOVAL OF NON-GAME PREDATORY MAMMALS AND VEGETATION 

AT THE METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 

OAKLAND, CALIFORNIA." 

April 5, 1994 - 18 -


APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO FILE 

APPLICATION WITH THE FEDERAL AVIATION ADMINISTRATION UNDER 

THE AIRPORT IMPROVEMENT PROGRAM, AIP-16." 


AUTHORIZING AND RATIFYING THE EXECUTIVE DIRECT'OR'S FILING 

OF PREAPPLICATION WITH THE FEDERAL AVIATION ADMINISTRATION 

UNDER THE AIRPORT IMPROVEMENT PROGRAM, AIP-17.". 

"RESOLUTION NO. 941:17 

APPROVING AND AUTHORIZING EXECUTION OF AN AMENDMENT TO 

PUBLIC WORKS CONTRACT WITH RAMPART WATERBLAST, INC. FOR 

REMOVAL OF RUBBER DEPOSITS FROM RUNWAY FOR THE PERIOD 

COMMENCING MARCH 1, 1994 AND ENDING FEBRUARY 28, 1995, 1996, OR 

1997, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, OAKLAND, 

CALIFORNIA." 


FINDING AND DETERMINING THAT A PROPOSED SIXTH 

SUPPLEMENTAL AGREEMENT WITH ROBERTS, ROACH AND 

ASSOCIATES, FOR AVIATION CONSULTING SERVICES CONSTITUTES 

PROFESSIONAL OR SPECIALIZED SERVICES; AND AUTHORIZING 

EXECUTION OF SAID SIXTH SUPPLEMENTAL AGREEMENT." 



AND CONCESSION AGREEMENT WI' WI'I rI WESTRIM CREDIT SERVICES, INC. 

DBA QUANTUM COURIER." 


FINDING AND DETERMINING THAT A PROPOSED EXCLUSIVE LISTING 

AGREEMENT WITH CB COMMERCIAL REAL ESTATE GROUP, INC. FOR 

MARKETING AND LEASING THE SECOND FLOOR OF PORT BUILDING F- 

107 CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES; AND 

AUTHORIZING EXECUTION OF SAID AGREEMENT." 


APPROVING PLANS AND SPECIFICATIONS TO REGRADE PAVERS, JACK 

LONDON SQUARE, OAKLAND, CALIFORNIA; AND CALLING FOR BIDS 


April 5, 1994 - 19 -


AUTHORIZING EXECUTION OF MEMORANDUM OF UNDERSTANDING 

FOR THE DEVELOPMENT OF AN OAKLAND JOINT INTERMODAL 

TERMINAL WITH SOUTHERN PACIFIC TRANSPORTATION COMPANY 

AND UNION PACIFIC RAILROAD COMPANY." 


FOR APPROVAL OF CHANGE ORDER FOR PROCESSING HAZARDOUS 

MATERIAL FROM HOWARD GATE MODIFICATIONS, CHARLES P. 

HOWARD 'TERMINAL, OAKLAND, CALIFORNIA." 


RA YING AND APPROVING ISSUANCE OF CHANGE ORDER FOR 

RAISING PACECO CRANE X422 AND RELOCATING IT TO CHARLES P. 

HOWARD TERMINAL, OAKLAND, CALIFORNIA." 


APPROVING PLANS AND SPECIFICATIONS FOR INSTALLATION OF ROOF 

DRAINS AND DRAINAGE CRICKETS, BUILDING C-127, 700 FERRY 

STREET, REET, OAKLAND, CALIFORNIA; AND CALLING FOR BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS FOR REPAIR OF FISHING 

PIER, MIDDLE HARBOR PARK, OAKLAND, CALIFORNIA; AND CALLING 

FOR BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS TO CONSTRUCT SECURITY 

FENCING FOR THE PERIOD COMMENCING JUNE 1, 1994, AND ENDING 

MAY 31, 1995, 1996, OR 1997, OAKLAND, CALIFORNIA; AND CALLING FOR 

BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS FOR 1994 STRUCTURAL 

INSPECTION AND REPAIR OF PACECO CRANES X421 (S/N 301) AT BERTH 

38, X423 (S/N 420) AT BERTH 37, SEVENTH STREET TERMINAL, AND X422 

(S/N 395) AT BERTH 67, HOWARD 'TERMINAL, OAKLAND, CALIFORNIA; 

AND CALLING FOR BIDS THEREFOR." 



AGREEMENT WITH MEC ANALYTICAL SYSTEMS, INC., FOR 

ENVIRONMENTAL CONSULTING SERVICES CONSTITUTES 


EXECUTION OF SAID FIRST SUPPLEMENTAL AGREEMENT." 

April 5, 1994 - 20 -



SUPPLEMENTAL AGREEMENT WITH I.C.F. KAISER ENGINEERS, FOR 

ENGINEERING DESIGN CONSULTING SERVICES CONSTITUTES 


EXECUTION OF SAID SECOND SUPPLEMENTAL AGREEMENT." 



SUPPLEMENTAL AGREEMENT WITH NORDHAV, INC. FOR 

ENVIRONMENTAL CONSULTING SERVICES CONSTITUTES 


EXECUTION OF SAID SUPPI EMENTAL AGREEMENT." 


APPROVING EXECUTION OF SUPPLEMENTAL AGREEMENT WITH 

AMERICAN PRESIDENT LINES, LTD." 


AWARDING CONTRACT TO W. G. THOMPSON PAINTING CORP., FOR 

PAINTING OF YARD LIGHT POLES, BERTH 24, OUTER HARBOR 


TO BE PROVIDED IN CONNECTION THEREWITH; REJECTING ALL 

OTHER BIDS; AND DIRECTING RETURN OF BID BONDS TO BIDDERS." 


REJECTING BID FOR CONTRACT FOR TOUCH-UP PAINTING OF TWO 

ALLIANCE CRANES, X441 AND X442, BERTHS 62 AND 63, MIDDI 

HARBOR TERMINAL, OAKLAND, CALIFORNIA." 




APPROVING JOB SPECIFICATIONS FOR THE POSITIONS OF LAND 

RECORDS MANAGEMENT COORDINATOR AND LAND RECORDS 

PROGRAMMER." 



POWER EQUIPMENT OPERATOR." 


RATIFYING EXTENDED -LEAVE OF ABSENCE TO SABRINA DEL 

FAVERO." 

April 5, 1994 - 21 -



CALIFORNIA COMPUTER OPTIONS/KC/FUTURE PLANNING INC. FOR 


SERVICES AND WAIVING COMPEITIIVE BIDDING; AND AUTHORIZING 

EXECUTION OF SAID SUPPLEMENTAL AGREEMENT." 


APPROVING PLANS AND SPECIFICATIONS FOR FURNISHING LABOR, 

MATERIALS AND EQUIPMENT FOR PAVING, GRADING AND 

ASSOCIATED GENERAL CONTRACTOR SERVICES FOR PORT OF 

OAKLAND FACILITIES FOR THE PERIOD COMMENCING MAY 1, 1994 AND 

ENDING MAY 31, 1995, 1996, OR 1997, OAKLAND, CALIFORNIA; AND 

CALLING FOR BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS FOR REMOVAL AND 

DISPOSAL OF HAZARDOUS WASTE, DESIGNATED WASTE, AND OTHER 

CONTAMINAIED MATERIALS FOR THE PERIOD COMMENCING JULY 1, 

1994 AND ENDING JUNE 30, 1995, 1996, OR 1997, OAKLAND, CALIFORNIA; 

AND CALLING FOR BIDS THEREFOR." 


CONCERNING CERTAIN I RAVEL." 


GRANTING WESTERN ERN FEDERAL SAVINGS AND LOAN ASSOCIATION 

PERMISSION TO PERFORM CERTAIN WORK" 


GRANTING TRANS-BOX SYS1EMS, INC. PERMISSION TO PERFORM 



GRANTING AMERICAN PRESIDENT LINES PERMISSION TO PERFORM 


Port Ordinance No. 3204 being, "AN ORDINANCE ESTABLISHING A 

PASSENGER FACILI IY CHARGE AND ADDING SEC liON 28 TO PORT 

ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE OF FACILITIES IES AT 

METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, AND MAKING 

CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH," 

April 5, 1994 - 22 -

Port Ordinance No. 3205 being, "AN ORDINANCE AMENDING PORT ORDINANCE 

NO. 2833 RELATING TO CONTAINER CRANE ASSIGNMENT AND RENTAL 

RA I ES", and Port Ordinance No. 3206 being, "AN ORDINANCE AMENDING PORT 

ORDINANCE NO. 867 TO CREA I E A NEW POSITION OF OPERATING AND 

CAPITAL BUDGET MANAGER AND TO ASSIGN THE POSITION OF PORT 

JUNIOR FINANCIAL ANALYST TO SALARY SCHEDULE NO. 226", were read a 

second time and passed by the following vote: 


Noes: None 




AUTHORIZING THE EXECUTION OF A SECOND SUPPLEMENTAL AGREEMENT 

TO LEASE WITH DONGARY INVESTMENTS, INC. AND DIRECTING 

RECORDATION THEREOF", and Port Ordinance No. being, "AN ORDINANCE 

AMENDING PORT ORDINANCE NO. 867 TO CREA I E ONE NEW POSITION OF 

LAND RECORDS MANAGEMENT COORDINATOR", and Port Ordinance No. 

being, "AN ORDINANCE AMENDING RULES AND PROCEDURES; OF THE PORT 

OF OAKLAND IN PORT ORDINANCE NO. 2199 RELATING TO MISCELLANEOUS 

LEAVES OF ABSENCE", and Port Ordinance No. being, "AN ORDINANCE 

AMENDING SECTION 1.03 OF PORT ORDINANCE NO. 867 RELATING TO THE 

ASSIGNMENT OF EMPLOYEES IN UNIT D TO SALARY SCHEDULE RASES "D" 

AND "E", were read a first time and passed to print by the following vote: 


Noes: None 



April 5, 1994 - 23 -

At the hour of 5:10 p.m., the Board entered into closed session to discuss with legal 

counsel existing litigation pursuant to subdivision (a) of Government Code Section 54956.9; 

Fred Grimes v. Port of Oakland, Alameda County Superior Court No. 667788-2, Port Case 

No. 90-04-C (CJS); City of Oakland v. CAN Transport, Inc., U.S. District Court, N.D. Cal., 

No. C93 4555 BAC (Port Case No. 93-34-EV (MH); CAL/OSHA Citations, Inspection 

Number 111815874 (4/01/93), Metropolitan Oakland International Airport; and reconvened 

in open session at the hour of 6:15 p.m at which time the meeting was adjourned on a 

motion duly made and seconded. 

April 5, 1994 - 24 - 

Secretary of the Board

REGULAR MEETING OF 'THE kk—ARD OF PORT COMMISSIONERS 



The meeting, formal portion, was held on Tuesday, April 19, 1994, at the hour of 3:20 

p.m., in the office of the Board, second floor, 530 Water Street, Oakland, California, First 

Vice President Broussard presiding, appropriate notice having been given and posted. 

Commissioners present: Kramer, Loh, Vohs and 


Commissioners absent: Commissioners Cole, Ortiz and 


Also present were the Executive Director; Port Attorney; Chief Engineer, Director of 

Aviation; Director of Commercial Real Estate; Director of Human Resources; Director of 

Maritime; Director of Equal Opportunity; Director of Finance; Director of Governmental 


The minutes of the special meeting of November 2, 1993; regular meeting of 

November 16, 1993; and the regular meeting of April 5, 1994 were approved as submitted 


Commissioner Loh, member of the Commercial Real Estate Committee, informed the 




Approval of Rent Increase to Tower Aviation Services (7843 Earbart Road, North 

Airport) was the subject of a memo to the Board from the Director of Aviation notifying the 

Board that Avionics Systems Inc. dba Tower Aviation Services has a license agreement with 

the Port covering Bay A of Hangar 8 and associated apron and parking at a monthly rental 

of $9,661.11. The agreement requires Tower to pay for its utility use based either upon the 

percentage of square footage to the total occupied building square footage, or based upon 

a utility survey to be performed by the Port of actual usage. Tower's agreement expired on

Octor 31, 1993, but continues under its 4.4clover provision. On the basis of the meter 

survey conducted by Port staff of actual usage, it was determined that Tower owes the Port 

$59,320.65 for unpaid past electricity use between November 1, 1991 and June 30, 1993. 

The Port has billed Tower for these charges and Tower has refused to pay them. It was 

recommended that the Board approve a rent increase to $12,731.75 per month, commencing 

May 1, 1994, to Avionics Systems Inc. dba Tower Aviation Services, as well as subsequent 

annual CPI-based rent increase. The proposed rent is based on the previous base rent of 

$9,661.00 being adjusted commencing May 1, 1994, for the increase in the Consumer Price 

Index for the year ending October 31, 1993 and by a 24-month pro-ration of the unpaid 

utility and associated delinquency charges; 10% annual interest thereon; and the accrued 

rent since November 1, 1993 and unpaid CIP based increase in the rent. This provides for 

a new monthly rent of $12,731.75. Tower will be advised that the twenty-four month pro- 

ration shall in no way give rise to a twenty-four month or other term occupancy agreement; 

rather, Tower's occupancy arrangement, per the holdover provisions would remain on a 

month-to-month basis. The recommendation was approved on passage of Resolution No. 

94146. 

Recommended Authorization to Apply for Membership in the Northern California 

Power Agency, Enter into a New Member Services Agreement and to Pay related Fees and 

Charges was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that iin 1985, the Port entered into an agreement with PG&E for 

purchasing electric power at wholesale rates for the Port's airport utility system. Under the 

agreement, rates were set according to a pricing formula described in the agreement until 

December 31, 1989. The first amendment to the agreement changing the pricing formula 

to raise the rates became effective January 1, 1990 and was to remain in effect until 

December 31, 1992 after which either party could give a one-year notice for terminating the 

contract. The contract is still in force and the Port currently pays PG&E about 

$3,500,000.00 per year for electric power at the airport. In order to investigate the 

April 19, 1994 - 2 -

1 

possit. ility of buying wholesale electric power at lower rates, staff has held meetings with 

PG&E, a consultant specializing in securing alternate sources of energy for public agencies, 

and the Northern California Power Agency. According to both NCPA and the consultant, 

the Port should be able to significantly reduce the cost of purchased power either by 

purchasing lower cost power from other sources or by using access to such power from 

other sources to force PG&E to either lower their rates or lose a large customer. NCPA can 

provide a very reliable and cheaper alternate source of power. NCPA has about 600 

megawatts of generating capacity and a fully manned dispatch (distribution) center serving 

large utility districts, such as the cities of Palo Alto, Santa Clara, Alameda, and Turlock, 

and small districts, such as Gridley and Biggs. NCPA has indicated that they can 

consistently supply the airport's power needs at rates well below PG&E rates and further, 

they will be willing to sign short-term contracts at even greater than normal savings due 

to the availability of surplus power resulting from the combination of a large amount of 

available hydro power, a slowdown in the economy, and base closures. It was recommended 

that the Board authorize the application for membership to join the Northern California 

Power Agency at a cost of approximately $25,000.00. The Port is required to enter into a 

New Member Services Agreement in connection with the application for membership in 

NCPA. Payment of fees and costs under this agreement does not ensure that the Port will 

be permitted to join NCPA. If the NCPA approves the Port's application, Board 

authorization will be requested for the Port joining the NCPA and entering into the NCPA 

Join Powers Agreement. The application fee is $2,802.00 and the legal review fees for 

NCPA's general, special, and bond counsel to determine if the Port meets the legal 

requirements to be a member are $15,000.00. In addition, once a member, the cost to the 

Port of the assessed annual contribution towards NCPA's General Budget will be about 

$6,000.00. The recommendation was approved on passage of Resolution No. 94147. 

Plans and Specifications to Construct Asphalt Concrete Overlay of Taxiway 1, South 

Airport. MOIA was the subject of a memo to the Board from the Deputy Executive Director 

April 19, 1994 - 3 -

ecok—Lending their approval and authont, to advertise for bids. The existing Taxiway 1 

pavement has deteriorated and must be upgraded to provide for continued safe aircraft 

operations on the taxiway. The project includes the widening of the Taxiway 5 intersection 

with Taxiway 1 in order to enhance aircraft safety and provide additional aircraft operating 

area for large aircraft at the intersection. The project is categorically exempt and does not 

require the preparation of an environmental document. The recommendation was approved 


Plans and Specifications to Remove Underaround Fuel Storage Tank 11F-03, 370 

Eighth Avenue was the subject of a memo to the Board from the Deputy Executive Director 

recommending their approval and authority to advertise for bids for the removal of the 

tanks. The site at 370 Eighth Avenue is occupied by Keep On-Trucking. The 2,000-gallon 

underground fuel storage tank at this site is in ctive and, in accordance with state 

regulations, must be removed. The project is categorically exempt and does not require the 



Plans and Specifications for Replacement of Double Check Valve Assemblies at 

Berth 62 and 63, Middle Harbor Terminal was the subject of a memo to the Board from 

the Deputy Executive Director recommending their approval and authority to advertise for 

bids for the work. The project consists, in general, of replacing the existing outdated 

double check valve assemblies installed below grade at APL with East Bay Municipal Utility 

District approved above grade reduced pressure back flow devices and extending the 

existing piping system to the new above grade location. The project is categorically exempt 

and does not require the preparation of an environmental document. The recommendation 


Authorization to Execute an Agreement with PG&E for Relocation of Their 

Transformer at Port View Park was the subject of a memo to the Board from the Deputy 

Executive Director recommending approval to enter into an agreement with PG&E for the 

April 19, 1994 - 4 -

eloc—Lm of the transformer at Port View at a cost of $20,709.00. The project is part 

of the construction at the new park at the Seventh Street Terminal. The recommendation 



Human Resources recommended the appointment of Gregory E. Buckner, as Custodian, 

effective April 25, 1994, at $2,347.00 per month; Yolanda Bocanegra, as Gardener I, effective 

May 9, 1994, at $2,142.00 per month; Juan Castaneda, as Gardener I, effective May 9, 1994, 

at $2,142.00 per month; Nora L. Doolittle, as Land Records Management, effective April 

21, 1994, at $4,516.00 per month; and the appointment of Imelda Garcia, Anthony Regaldo, 

Roxana Tejada, and Thanh Chi Vuong, all as High School Interns. The recommendations 

were approved on passage of Resolution No. 94152 for appointments. 

Approval to Increase Maximum Annual Compensation for Testing Services was the 

subject of a memo to the Board from the Deputy Executive Director notifying the Board of 

the agreement with Quality Assurance, Inc., dba Consolidated Engineering, for testing of 

construction materials used on Port construction contracts and for providing inspectors to 

supplement Port staff during peak workload periods. The agreement is dated November 

5, 1990, and the term of the agreement is not to exceed three years. The maximum annual 

compensation under the agreement is $300,000.00 per contract year, and the annual limit 

may be increased by $100,000.00 by the written order of the Executive Director. In 1991, 

the Board approved increasing the maximum compensation for the first contract year to 

$650,000.00 due to additional testing and inspection services required for emergency 

earthquake repairs at the Seventh Street Terminal and at the Airport. The authorized 

amount for the second year remained at $300,000.00 per the agreement. The maximum 

allowable total compensation for the three years under the terms of the agreement, as 

amended, is $1,350,000.00. The final total value of the three years of work performed under 

the agreement is $1,313,670, less than the three-year maximum allowable total compensation 

of $1,350,000.00. All work under this agreement has been completed and the final invoices 

April 19, 1994 5

haven received with the total cost of siices for the third year at $585,477.00. It is 

proposed that the agreement with Consolidated Engineering be amended to increase the 

maximum annual compensation for the third contract year from $400,000.00 to $585,477.00. 

It was recommended that the Board approve $185,477.00 in additional compensation to 

Consolidated Engineering for materials testing and special inspection services for the third 

contact year. The recommendation was approved on passage of Resolution No. 94153. 

Lease of Reproduction Equipment was the subject of a memo to the Board 

from the Director of Public Affairs notifying the Board that the Reprographics Unit 

currently is using an older Kodak 235 high speed copier. The machine presently is 

operating at more than 150 percent of its design capacity and the overload causes frequent 

breakdowns. The cost of the lease is $2,185.00 per month for a 60 month term and is 

included in the current budget and the 94-95 budget. The monthly cost includes 100,000 

copies. It was recommended that a new Lease Agreement with Eastman Company for the 

Kodak 2110VA high speed copier to supplement the Kodak 235 presently in use. The 


Approval of Amendment to Contract for Furnishing Service and Maintenance for 

Various Elevators and Escalators at Port-Owned Buildin g. was the subject of a memo to 

the Board from the Deputy Executive Director notifying the Board of the contract with 

Montgomery Elevator Company for service and maintenance of the Port's various elevators 

and escalators. The specifications asked for "Comprehensive Bodily Injury and Property 

Damage Liability Insurance" and the type of insurance that is available for contractors 

doing this type of equipment service and maintenance is Owners and Contractors Protective 

Liability. It was recommended that the Board amend the contract to provide for the use 

of "Comprehensive Bodily Injury and Property Damage Liability Insurance." The 


Uncollectible Accounts was the subject of a letter to the Board from the Port 

Attorney notifying the Board that the Director of Finance has submitted the annual list of 

April 19, 1994 - 6 -

certaJccounts receivable, listed and idek.._ _A under separate cover, to be written off the 

books of the Port as of April 19, 1994. The amounts represent aged accounts receivable 

arising from, among other things, damage to the Port property, rent, utilities, landing fees, 

concession fees and aircraft storage charges. These accounts total $541,078.09 with the 

majority of the money owed resulting from bankruptcy. It was recommended that the 

Board authorize the accounts to be written off the books of the Port. The recommendation 


Closed Session was the subject of a memo to the Board from the Secretary of the 

Board. The Board's agenda provided for a closed session to discuss with Legal Counsel on 

Existing Litigation pursuant to subdivision (a) of Government Code Section 54956.9: 

McClendon v. Port of Oakland, Alameda County Superior Court No. 712268-6; and City of 

Oakland v. CAN Transport, Inc., U.S. District Court N.D. Cal., No. C93-4555 BAC. As the 

Board had no further need to discuss the cases, the Board did not enter into closed session. 

vote: 


Ayes: Commissioners Kramer, Loh, Vohs and 

Noes: None 


Absent: Commissioners Cole, Ortiz and 



APPROVING AND FIXING THE MONTHLY RENT PAYABLE,. BY AVIONICS 

SYSTEMS, INC. DB.A TOWER AVIATION SERVICES CONCERNING LICENSED 

PREMISES AND APPROVING AND AUTHORIZING THE GIVING OF NOTICE 

RELATED THERETO." 


AUTHORIZING THE EXECUTIVE DIRECTOR TO APPLY FOR PORT 

MEMBERSHIP IN THE NORTHERN CALIFORNIA POWER AGENCY, AND TO 

ENTER INTO AN AGREEMENT AND TO PAY CERTAIN FEES AND COSTS IN 

CONNECTION WITH SUCH MEMBERSHIP APPLICATION." 

April 19, 1994 - 7 -

"REST -,UTION NO. 94148 

APPROVING PLANS AND SPECIFICATIONS FOR CONSTRUCTION OF 

ASPHALT CONCRETE OVERLAY OF TAXIWAY 1, SOUTH FIELD, 




APPROVING PLANS AND SPECIFICATIONS TO REMOVE UNDERGROUND 

FUEL STORAGE TANKS HF-03, 370 EIGHTH AVENUE, OAKLAND, 



APPROVING PLANS AND SPECIFICATIONS FOR REPLACEMENT OF DOUBLE 

CHECK VALVE ASSEMBLIES AT BERTHS 62 AND 63, MIDDLE HARBOR 

TERMINAL, OAKLAND, CALIFORNIA; AND CALLING FOR BIDS THEREFOR." 


APPROVING EXECUTION OF AGREEMENT TO PERFORM TARIFF 

SCHEDULE RELATED WORK WITH PACIFIC GAS AND ELECTRIC 

COMPANY." 




FINDING AND DETERMINING THATA PROPOSED SECOND SUPPLEMENTAL 

AGREEMENT WITH QUALITY ASSURANCE, INC., DOING BUSINESS AS 

CONSOLIDATED ENGINEERING, FOR ENGINEERING CONSULTING 


AND AUTHORIZING EXECUTION OF SAID SECOND SUPPLEMENTAL 

AGREEMENT." 


FINDING AND DETERMINING THAT IT IS TN THE BEST INTEREST OF THE 

PORT TO LEASE ONE KODAK 211OVA HIGH SPEED COPIER WITHOUT 

COMPETITIVE BIDDING AND AUTHORIZING THE LEASE OF SAME ON THE 

OPEN MARKET WITH EASTMAN KODAK COMPANY." 


APPROVING AMENDMENT TO CONTRACT WITH MONTGOMERY ELEVATOR 

COMPANY FOR FURNISHING SERVICE AND MAINTENANCE FOR VARIOUS 

ELEVATORS AND ESCALATORS AT PORT-OWNED BUILDING." 

April 19, 1994 - 8 -


FINDING CERTAIN ACCOUNTS RECEIVABLE TO BE UNCOLLECTIBLE AND 

AUTHORIZING THE DIRECTOR OF FINANCE TO WRITE OFF SAME FROM 

THE BOOKS OF THE PORT." 


GRANTING NEIL WEINBERG AND RUDY ALEXANDER DBA SALTY DOG 



GRANTING AIRBORNE FREIGHT CORPORATION PERMISSION TO 



APPROVING AND AUTHORIZING EXECUTION OF AN AGREEMENT WITH 

CAN TRANSPORT, INC., AND THEREFORE DISMISS WITHOUT PREJUDICE 

COMPLAINT NO. 93 455 BAC." 


OF CONDOLENCE ON THE PASSING OF H. BOYD GAINOR" 


AUTHORIZING THE EXECUTION OF A SECOND SUPPLEMENTAL AGREEMENT TO 

LEASE WITH DONGARY INVESTMENTS, INC. AND DIRECTING RECORDATION 

THEREOF", and Port Ordinance No. 3208 being, "AN ORDINANCE AMENDING PORT 

ORDINANCE NO. 867 TO CREATE ONE NEW POSITION OF LAND RECORDS 

MANAGEMENT COORDINATOR", and Port Ordinance No. 3209 being, "AN ORDINANCE 

AMENDING RULES AND PROCEDURES OF THE PORT OF OAKLAND IN PORT 

ORDINANCE NO. 2199 RELATING TO MISCELLANEOUS LEAVES OF ABSENCE", and 

Port Ordinance No. 3210 being, "AN ORDINANCE AMENDING SECTION 1.03 OF PORT 

ORDINANCE NO. 867 RELATING TO THE ASSIGNMENT OF EMPLOYEES IN UNIT 

D TO SALARY SCHEDULE RATES "D" AND "E", were read a second time and passed by 

the following vote: 

April 19, 1994 

- 9 -

yes: Commissioners Kran., , Loh, Vohs and 

Noes: None 


Absent: Commissioners Cole, Ortiz & President Lockhart - 3 

At the hour of 4:05 p.m, the meeting was adjourned in honor of and out of respect 

to H. Boyd Gainor, former Port Commissioner, 1969-1979. 

April 19, 1994 - 10 -




The meeting, formal portion, was held on Tuesday, May 3, 1994, at the hour of 3:40 

p.m., in the office of the Board, second floor, 530 Water Street, Oakland, California, First 

Vice President Broussard presiding, appropriate notice having been given and posted. An 

informal portion was held during the period from 3:00 p.m. to 3:38 p.m. during which time 

the Board received a presentation on the 1994-95 Capital Budget expectations. 

Commissioners present: Kramer, Loh, Ortiz, Vohs and 


Commissioners absent: Commissioners Cole and President Lockhart - 2 

Also present were the Executive Director; Port Attorney; Chief Engineer; Director 

of Aviation; Director of Commercial Real Estate; Director of Human Resources; Director 

of Maritime; Director of Equal Opportunity; Director of Finance; Director of Governmental 


The minutes of the special meeting of December 7, 1993; and the regular meeting 

of April 19, 1994 were approved as submitted and ordered filed. 

Commissioner Vohs, member of the Audit and Finance Committee, informed the 




Award of Contract, Repair and Painting of Three Aircraft Passenger Loading 

Bridges, South Airport, MQIA was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the six bids received and that the low bid of 

Allied Painters, Inc., at $27,866.00, did not include a bid security; and the second low bidder, 

Zantic Construction Painting, at $49,950.00, did not meet the experience requirements. It 

was recommended that the contract be awarded to Redwood Painting Co., Inc., at 

$52,152.00, and that all other bids be rejected and the bid securities be returned to the

espective bidders. Mr. George Benetatos, an attorney representing Zantic Construction, 

appeared before the Board to ask that the experience requirements be reconsidered as the 

individuals making up the Zantic Firm had the necessary experience, but the business entity 

did not. Vice President Broussard informed Mr. Benetatos that the Board would be 

reluctant to amend the specifications or award without re-bidding the project to allow for 

others to re-bid, and he further noted that the Port would be bidding other painting projects 

for which Zantic and others could bid. The recommendation was approved on passage of 


Management Agreement with Marine Terminals Corporation lbr Seventh Street 

Marine Container Terminal was the subject of a memo to the Board from the Director of 

Maritime notifying the Board that Marine Terminals Corporation has operated the Seventh 

Street Marine Container Terminal as a public container terminal under various Agreements 

since the 1970s and the current five year term expires June 30, 1994. The Port staff and 

MTC have negotiated for a new 10-year agreement, and it was recommended that the Board 

approve the agreement. The basic terms include: MTC will receive 2.5% of the gross Port 

of Oakland tariff dockage and wharfage charges as a maintenance fee. MTC shall receive 

an additional $5.00 per loaded I EU for any new shipping line activity which it can attract 

to the Port. This incentive would not apply for lines transferring from other Port facilities. 

The Port may cancel the Agreement upon six months notice to MTC if revenue cargo during 

any contact year is less than 98,000 loaded I E,Us. MTC would have 90 days to either secure 

another shipping line account that would generate volumes exceeding this annual 

Performance Standard or pay the equivalent wharfage shortfall on the difference between 

the actual TEUs handled and the Performance Standard. A minimum annual of 4,000 crane 

hours will be initially guaranteed by MTC at the prevailing tariff rates for the four gantry 

cranes presently operating at the Seventh Street Terminal. This 4,000 hour guarantee will 

be subject to specific increases commencing with the second, third and fourth contract years. 

MTC will be paid 10% of the gross Port of Oakland tariff charges collected from users of 

May 3, 1994 -2-

the facility for wharf demurrage and storage. MTC will undertake approximately 5 million 

dollars in improvements to the Seventh Street Terminal. Cost of the improvement funds 

will be calculated at the rate of 5% of the outstanding balance. Construction will include 

a new gate complex entrance and adjacent infrastructure improvements. As reimbursement 

for these improvements, MTC would receive an additional 2.5% of the gross tariff dockage 

and wharfage from existing activity, and an additional 7.5% of gross tariff dockage and 

wharfage from new activity generated at the facility. The $5.00 per loaded 1EU Incentive 

Fee for attracting a new line(s) will also be credited towards reimbursement until 

contribution towards improvement is paid. The Incentive Fee will expire at the end of seven 

and one half years from when the new shipping line(s) commences its Oakland operations. 

The recommendation was approved on passage of an ordinance passed to print. 

Terminal Use Agreement with Hanjin Shipping was the subject of a memo to the 

Board from the Director of Maritime notifying the Board that Hanjin Shipping Company 

has a Tei mina' Use Agreement at the Seventh Street Marine Container Terminal operated 

by Marine Terminals Corporation which expires June 30, 1994. Negotiations for a new 

TUA with Hanjin Shipping have been concluded and it was recommended that the Board 

approve the new five-year agreement. The basic terms include that Hanjin will retain 10% 

of the Port's prevailing tariff rate for dockage at the time of vessel activity for the first 45 

vessel calls in any contract year. Additional dockage incentives are provided for should 

Hanjin exceed 45 annual vessel calls or deploy additional service levels into Oakland. 

Hanjin will retain 20% of the Port's prevailing tariff rate for wharfage at the time of cargo 

activity at the terminal. An additional refund will be given Hanjin at the conclusion of each 

contract year based on achievement of the following volume levels: to 29,999 loaded TEUs, 

20%; to 39,999 loaded TEUs, 25%; and 40,000 or more loaded TEUs, 30%. As an 

additional wharfage discount, if Hanjin's Interior Point Intermodal throughout service cargo 

at the Seventh Street Terminal exceeds 7,500 loaded TEUs in a contract year, Hanjin will 

be refunded $10.00 per loaded I EU for such "IPI" cargo which exceeds 7,500 loaded '1 EUs 

May 3, 1994 3

following conclusion of the contract year. "IPI" cargo will be defined as cargo originating 

or terminating outside the states of Arizona, California, Nevada, Oregon and Washington. 

The new agreement recognizes a future preferential assignment potential and provides for 

the Port, MTC and Hanjin Shipping to discuss and evaluate options for providing more 

terminal capacity based upon the teiminal's annual loaded 'l'EU throughput and increased 

levels of Hanjin Shipping's cargo activity. The recommendation was approved on passage 

of an ordinance passed to print. 

Recommendation to Authorize an Agreement with LSA Associates to Prepare a 

Wetland Mitigation Plan for the Galbraith Golf Course was the subject of a memo to the 

Board from the Deputy Executive Director notifying the Board that as part of the permit 

application to the Corps of Engineers for preparing the Galbraith disposal site to receive 

dredged material from the 45-foot harbor deepening project, the Port must prepare a 

mitigation plan to compensate for the seasonal and tidal wetlands to be lost at the site 

through project implementation. The Port solicited proposals from four qualified firms, and 

it was recommended that the Board authorize the preparation and execution of an 

agreement with LSA Associates, Inc., to provide professional services to prepare a wetland 

mitigation plan for the Galbraith Golf Course. As compensation for their services, LSA 

Associates, Inc., will be paid at agreed billing rates for performing the scope of work up to 

a total maximum compensation of $120,000.00, with an additional $30,000.00 available at 

the discretion of the Execution Director. The cost of this study will be credited toward the 

Port's commitment to provide Lands, Easements, Rights-of-Way, and Disposal Sites 

.F,RRD) to the Corps of Engineer for the 42-foot Project. The recommendation was 


Award of Contract for Furnishing Labor. Materials and Equipment for 

Reconditioning. Repairing and Reconstructing Port of Oakland Railroad Tracks and Crane 

Rails for the Period Commencin g May 1. 1994 and Ending Avail 30. 1995, 1996. or 1997 


May 3, 1994 

-4-

Board of the four bids received and recommending award of the contract to Kleven 

Construction, Inc., the low bidder, at labor costs plus 78 1/2% which compensates the 

contractor for his overhead, insurance and profit. The recommendation was approved on 


Award of Contract for Furnishing Pile Driver Crew for Repairs to Port of Oakland 

Docks and Waterfront Facilities for the Period Commencing May 1, 1994 and Ending April 

30,1995. 1996. or 1997 was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the six bids received and recommending award of the 

contract to Dutra Construction, the low bidder, at labor costs plus 58% which compensates 

the contractor for his overhead, insurance and profit. The recommendation was approved 



Resources recommended the appointment of Clarence L. Ellis, as Custodian at Airport 

Terminal Services, effective May 9, 1994, at $2,347 per month; a medical leave of absence 

to Sabrina Del Favero, Senior Secretary, for 33 working days through :tune 1, 1994; the 

termination of Deborah A. Woo-Wong, Administrative Secretary, who is permanently 

disabled from performing her job, to be effective the close of the work day of May 3, 1994. 

The Port fulfilled its obligation to the employee under Workers' Compensation and 

vocational rehabilitation has been initiated. Further was the termination of Manuel P. 

Perez, Equipment Systems Engineer, for cause effective the close of the work day of May 

3, 1994. Ms. Woo-Wong appeared before the Board to note that she cannot perform her 

previous duties and asked for special treatment to allow her to stay on as a Port Employee. 

The Board received the comments without discussion. The recommendations were approved 

on passage of Resolution No. 94165 for appointment; Resolution No. 94166 for extended 

leave of absence; Resolution No. 94167 for termination; and Resolution No. 94168 for 

termination. 

May 3, 1994 5

-Award of Contract for Furnishing Labor, Materials and Equipment for Paving, 

Grading and Associated General Contractor Services for the Port of Oakland Facilities for 

the Period Commencing June 1, 1994 and Ending May 31, 1993. 19916 or 1997 was the 


of the four bids received and recommending the award of the contract to Gallagher & Burk, 

Inc., the low bidder, at direct labor costs plus 37.8% which compensates the contractor for 

his overhead, insurance and profit. The recommendation was approved on passage of 


Closed Session was the subject of a memo to the Board from the Secretary of the 

Board notifying the Board that the Board's agenda provides for the opportunity to enter into 

closed session for a conference with Legal Counsel on existing litigation pursuant to 

subdivision (a) of Government Code Section 54956.9; Harbor Insurance Co. v Port of 

Oakland, Alameda County Superior Court No. 683496-0; and conference with Legal Counsel 

on anticipated litigation for initiation of litigation pursuant to subdivision (c) of Government 

Code Section 54956.7. The Board did not enter into closed session and passed, upon the 

recommendation of the Port Attorney, Resolution No. 94172 in reference to anticipated 

litigations. 

vote: 

May 3, 1994 


Ayes: Commissioners Kramer, Loh, Ortiz, Vohs and 

Noes: None 


Absent: Commissioners Cole and President Lockhart - 2 

6


DISQUALIFYING BID OF ALLIED PAINTERS, INC., AND ZANTIC 

CONSTRUCTION; AWARDING CONTRACT TO REDWOOD PAINTING CO., 

INC., FOR REPAIR AND PAINTING OF THREE AIRCRAFT PASSENGER 

LOADING BRIDGES, SOUTH FIELD, METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT, OAKLAND, CALIFORNIA; FIXING THE 


REJEC I1NG ALL OTHER BIDS; AND DIRECTING RETURN OF BID BONDS 

TO BIDDERS." 


FINDING AND DE I ERMINING THAT A PROPOSED AGREEMENT WITH 

LSA ASSOCIATES FOR ENVIRONMENTAL CONSULTING SERVICES 





AWARDING CONTRACT TO KLEVEN CONSTRUCT ION, INC., FOR 

FURNISHING LABOR, MATERIALS AND EQUIPMENT FOR 

RECONDI HONING, REPAIRING AND RECONS'TRUCHNG PORT OF 

OAKLAND RAILROAD TRACKS AND CRANE RAILS FOR THE PERIOD 

COMMENCING MAY 1, 1994 AND ENDING APRIL 30, 1995, 1996 OR 1997, 

OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF :BONDS TO BE 

PROVIDED IN CONNEC 110N THEREWITH; REJECTING ALL OTHER BIDS; 

AND DIRECTING RETURN OF BID BONDS TO BIDDERS." 


AWARDING CONTRACT TO DUTRA. CONSTRUCI ION CO. INC., FOR 

FURNISHING PILE DRIVER CREW FOR REPAIRS TO PORT OF OAKLAND 

DOCKS AND WATERFRONT FACILITIES FOR THE PERIOD COMMENCING 

MAY 1, 1994 AND ENDING APRIL 30, 1995, 1996 OR 1997, OAKLAND, 





APPOINTING CLARENCE L. El I IS TO THE POSITION OF CUSTODIAN." 


RATIFYING EXTENDED LEAVE OF ABSENCE TO SABRINA DEL 

FAVERO." 


I ERMINATING APPOINTMENT OF DEBORAH A. WOO-WONG." 

May 3, 1994 7

"RESUTION NO. 94168 

1ERMINATING APPOINTMENT OF MANUEL P. PEREZ." 


AWARDING CONTRACT TO GALLAGHER & BURK, INC., FOR 

FURNISHING LABOR, MATERIALS AND EQUIPMENT FOR PAVING, 

GRADING AND ASSOCIATED GENERAL CONTRACTOR SERVICES FOR 

PORT OF OAKLAND FACILITIES FOR THE PERIOD COMMENCING JUNE 

1, 1994 AND ENDING MAY 31, 1995, 1996 OR 1997, OAKLAND, CALIFORNIA; 

FIXING THE AMOUNT OF BONDS TO BE PROVIDED IN CONNECTION 

THEREWITH; REJECTING ALL OTHER BIDS; AND DIRECTING RETURN 

OF BID BONDS TO BIDDERS." 


GRANTING AIR TERMINAL SERVICES INCORPORATED AND ATS- 

LOMBARD SERVICES PERMISSION TO PERFORM CERTAIN WORK." 


GRANTING ALAMO RENT A CAR, INC. PERMISSION TO PERFORM 



AUTHORIZING AND RATIFYING SETTLEMENT OF CLAIM AGAINST 

ALISTO ENGINEERING AND CALIFORNIA UTILITY SURVEY OR, IN THE 

AL1ERNATIVE, APPROVING THE FILING OF COMPLAINT AGAINST 

ALISTO ENGINEERING AND CALIFORNIA UTILITY SURVEY." 

Port Ordinance No. being, "AN ORDINANCE AUTHORIZING THE 

EXECUTION OF MANAGEMENT AGREEMENT WITH MARINE TERMINALS 

CORPORATION," and Port Ordinance No. being, "AN ORDINANCE 

AUTHORIZING THE EXECUTION OF TERMINAL USE AGREEMENT WITH 

HANJIN SHIPPING COMPANY, LTD," were read a first time and passed to print by the 


Ayes: Commissioners Kramer, Loh, Ortiz, Vohs and 

Noes: None 


Absent: Commissioners Cole and President Lockhart 2 

May 3, 1994 8

At the hour of 4:25 p.m, the meeting was adjourned on a motion duly made and 

seconded with the notation that the Board's next meeting, Tuesday, May 17, 1994, would be 

held at 2:00 p.m. 

May 3, 1994 


9




On Friday, May 13, 1994, President Lockhart called for a special meeting of the 

Board to be held on Tuesday, May 17, 1994, at the hour of 2:00 p.m. The business to be 

transacted would be the bi-monthly normal agenda with a one hour earlier starting time to 

allow for' the completion of the business of the Board. 

The special meeting, formal portion, was held on Tuesday, May 17, 1994, at the hour 




received a presentation on the 1994-95 Operating Budget. 





Director of Aviation; Senior Commercial Representative; Director of Human Resources; 

Director of Finance; Director of Equal Opportunity; Risk Manager; Chief Engineer; Chief 

of Planning; Chief of Facilities; Director of Governmental Affairs; Director of Public 

Affairs; and Secretary of the Board. 

The minutes of the special meeting of December 21, 1993; and the regular meeting 

of May 3, 1994 were approved as submitted and ordered filed. 





Commissioner Ortiz, Chair of the Commercial Real Estate Committee, informed the 






Approval to Assess Penalty to Brava, Inc. for Adding Subcontractor was the subject 

of a memo to the Board from the Deputy Executive Director notifying the Board that the 

Port has a contract with Brava, Inc. for construction of ARFF Quick Response Pad, on the 

Airport. The contract was based on lump sum and unit price items totalling $146,000.00. 

The work involves the construction of a steel frame canopy over a concrete floor slab, an 

asphalt concrete driveway adjacent to Taxiway 1 and electrical service to the facility. The 

General Provisions (Paragraph 34) of the Contract Specifications include a statement that 

"Subletting or subcontracting of any portion of the work in excess of one-half of one percent 

(1/2 of 1%) of the Contractor's total bid as to which no subcontractor was designated in the 

original bid shall only be permitted in cases of public emergency or necessity." A Contractor 

violating this provision of this Paragraph 34 violates the contract and the Board may exercise 

the option, in its own discretion, of (1) canceling the contract or (2) assessing the Contractor 

a penalty in an amount of not more than ten percent (10%) of the amount of the 

subcontract involved." Brava has informed the Port that due to a sudden illness, they had 

no choice but to hire a subcontractor for the asphalt concrete which they were originally 

going to perform themselves. The subcontract contract total for this work is $9,500.00. This 

is in excess of the $730 threshold established by the 1/2 of 1% requirement described in the 

contract specification. After careful review of Brava's situation, it was felt that there was 

no apparent intent by Brava to subvert the subcontract requirements and it was 

recommended that the Board assess Brava, Inc., a penalty of $950.00 for violating Paragraph 

34 of the General Provisions. The recommendation was approved on passage of Resolution 

No. 94173. 

May 17, 1994 - 2 -

Submittal of Application to Bay Area Air Quality Management District for Funds 

to Provide for Electric Busses at the Airport was the subject of a memo to the Board from 

the Director of Aviation recommending approval to submit an application to the Bay Area 

Air Quality Management District in the amount of $428,140.00 for eligible funding from the 

Transportation Fund for Clean Air (Assembly Bill 434). The Port is interested in using 

alternate fuel vehicles in future bus fleets as part of Port's commitment to improve air 

quality. These buses will operate at the Airport and service the parking facilities. Matching 

funds for the purchase of the four electric buses will be provided by the current operator 

at no cost to Port. The total cost of the buses is estimated at $950,280.00 with $428,140.00 

anticipated in AB434 funding. The recommendation was approved on passage of Resolution 

No. 94174. 

Authorization to Purchase Aircraft Firefighters' Suits was the subject of a memo to 

the Board from the Deputy Executive Director recommending approval to negotiate the 

purchase of 33 aluminized aircraft firefighters' suits and accessories, at a cost of 

approximately $25,000.00. The existing 33 aircraft firefighters' suits are approximately 15 

years old and are worn and obsolete. It is in the Port's best interest to negotiate the 

purchase of the 33 aircraft firefighters' suits to provide for customized features, expedited 

delivery and greater cost control. The recommendation was approved on passage of 


Rejection of Bid and Authorization to Negotiate Contract for Regrade Pavers, Jack 

London Square was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the two bids received from McGuire and Hester, at 

$60,000.00 and Gallagher & Burk, Inc. at $126,875.00. The engineer's estimate for the work, 

including engineering, is $35,000.00 and the bids are considered excessive. Most of the 

contractors who perform this type of work normally function as specialty subcontractors, and 

are uncomfortable with this general type of work. The contract specifications have been 

amended to limit the uncertainties in these areas and potential bidders have indicated that 

May 17, 1994 - 3 -

they now would bid the project. It was recommended that the Board reject the bid as 

excessive and the bid securities be returned to the bidders. It was further recommended 

that the revised plans and specifications be approved and that it be found to be in the best 

interests of the Port to dispense with formal bidding procedures and the Executive Director 

be authorized to negotiate on the open market and to execute a contract based on the 

receipt of informal bids The recommendation was approved on passage of Resolution No. 

94176. 

Approval of a license agreement from the Navy to the Port and a License Agreement 

from the Port to the Union Pacific Railroad covering 5.9 acres at the Naval Supply Center 

was the subject of a memo to the Board from the Director Commercial of Real Estate 

notifying the Board that the Union Pacific Railroad has requested that the Port rent 

approximately 5.9 acres of the Naval Supply Center adjacent to their rail-head and included 

in parcel one covered by tile lease executed by the Port and the Navy. As the lease will not 

be effective until all of the exhibits are complete, the UP occupancy will be covered by a 

license agreement. The Navy will grant a "no fee" license agreement to the Port and the 

Port will provide a license agreement to the UP. The vacant 5.9 acre parcel is partly paved 

and is land-locked and UP will use the area to park trailers, trucks and other transportation 

equipment. The term of the license agreement will be for less than one year and we expect 

to renew the agreement for the following two years for a total of three years at the same 

rental rate. The rental is based on a 6% return of $6 per square foot or approximately 

$93,000.00 per year payable monthly. The Navy has determined that this project is 

categorically excluded per their criteria. The project has been reviewed pursuant to the 

California Environmental Quality Act and the Port CEQA Guidelines and was determined 

to be categorically exempt with no further environmental review required. It was 

recommended that the Board approve the license agreement from the Navy to the Port and 

approve the license agreement from the Port to the Union Pacific Company. The 


May 17, 1994 

- 4

Building Permit Application for T.G.I. Friday's Restaurant and Bar Exterior Tenant 

Improvements. 51 Broadway, Building F-112 was the subject of a memo to the Board from 

the Deputy Executive Director recommending approval for the construction of exterior 

improvements to the space in the east end of Building F-112. The work includes facade 

alterations, storage building additions, signage, and exterior seating for 42 people. Under 

the Tenant Improvement Guidelines previously approved by the Board, the Chief Engineer 

has approved the permit application for interior work for a restaurant and bar with interior 

seating for 241 people. The estimated cost of the proposed work is $210,000.00. The 

project has been determined to be consistent with the Jack London Square Master 

Development Plan for Phase I, and with the Supplemental Final EIR for Phase I, and with 

the Supplemental Final EIR for this Phase approved by the Board on December 4, 1989. 


Third Supplemental Agreement, Engineering Design Services, Seventh Street 

Terminal was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of a professional services agreement with Jordan 'Woodman for the 

design of the reconstruction of the Seventh Street Terminal Yard. The current maximum 

compensation under the terms of the agreement as modified by the First and Second 

Supplemental Agreements and the Executive Director's approval of changes in scope is 

$1,024,600.00. The original agreement focused on 20 acres of Berth 37 that was damaged 

in the 1989 earthquake and was available for immediate rehabilitation. The design of that 

project necessitated preliminary design of the whole peninsula and was the intent that, as 

other areas became available, they too would be reconstructed to this overall plan. At this 

time, it is desired to prepare plans and specifications for the gate complex for the Seventh 

Street Terminal and will include the design of the relocation of the remainder of Seventh 

Street, a new modular office building, camera bridge, locations for truck scales, clerk and 

guard booths, paving and grading, and associated demolition. It was recommended that the 

Board amend the agreement with Jordan Woodman Dobson, to increase the scope of work, 

May 17, 1994

and to increase the maximum compensation to be paid. It is proposed to increase the 

current $1,024,600.00 maximum compensation by $273,000.00, including an increase in the 

fixed fee of $21,200.00 with an additional $62,000.00 available at the discretion of the 


94179. 

Re t_guestit13 - A ,pproyal 

of Right of Entry for Caltrans to Construct Aerial Roadways 

Over Port Property Between the Bay Bridge Toll Plaza and Burma Road Connecting 1-80 

and New 1-880 Freeways was the subject of a memo to the Board from the Director of 

Maritime notifying the Board that Caltrans improvements to connections between 1-80 and 

the new 1-880 Freeway require the acquisition of approximately eight acres of Port property 

along the Southern side of the Bay Bridge Toll Plaza adjacent to the Oakland Army Base. 

Caltrans will use approximately two acres for a permanent aerial easement, approximately 

two acres fee and approximately four acres for a temporary construction easement that will 

expire in January, 1998. One acre permanent utility easement through the permanent and 

temporary easement parcels is also to be acquired. The design plans include: a temporary 

Bay Bridge off-ramp and surface road to be used as a detour during construction; a ramp 

that will serve as a connector between Eastbound 1-80 and the new 1-880; a horseshoe 

shaped off-ramp from Westbound 1-80 (the Bay Bridge approach) to the Oakland Army 

Base, EBMUD Wastewater Treatment Plant and the Port of Oakland; and an elevated off- 

ramp from Eastbound 1-80 to the Army Base, EBMUD, and the Port. Caltrans is currently 

preparing a fair market value appraisal of the property and the Port will receive just 

compensation for the property being acquired. The project was evaluated by Caltrans in the 

Environmental Impact Statement/Report on the 1-880 Cypress Freeway Replacement. It 

was recommended that the Board approve the Right of Entry for Caltrans which will allow 

for start of construction. The recommendation was approved on passage of Resolution No. 

94180. 

May 17, 1994 

- 6 -

Authorization to Reimburse Marine Terminals Corporation for Additional 

Maintenance Work on the Storm Brakes on the ICocks Cranes was the subject of a memo 

to the Board from the Deputy Executive Director notifying the Board that during a routine 

maintenance inspection of the Kocks cranes at the Seventh Street Public Container Terminal 

by Marine Terminals Corporation, they found that half of the brake pads on the gantry 

wheel storm brakes were worn and required replacement. Under normal usage, the storm 

brake pads do not need to be replaced since the brakes are only applied after the crane has 

come to a complete stop and are released before the crane starts moving. Investigation 

revealed the cause of the premature brake pads wear to be a malfunctioning of the caliper 

which presses the brake pads against both sides of the gantry wheels. During erection of 

the crane, the painter applied paint to a portion of the brake caliper which should have 

been masked off. All of the brake assemblies had to be disassembled completely, paint 

removed, and the frozen pivot joints freed and MTC has presented an invoice for $36,222.48 

for its costs in performing the unexpected maintenance work on the storm brakes. It was 

recommended that the Board authorize payment to Marine Terminals Corporation of 

$36,222.48 for reimbursement of costs to repair the brakes. It was noted that staff would 

seek reimbursement from Kocks for the cost of this work on all three cranes during the 

negotiations for final payment for the third crane. The recommendation was approved on 

passage of Resolution No, 94181. 

License and Concession Agreement with Mr. Douglas C. Niemeth Towing, Inc. dba 

Bayside Dredging Co. was the subject of a memo to the Board from the Director of 

Maritime notifying the Board that Oscar Niemeth Towing, Inc. has been a Port tenant under 

various assignments since 1978. The present temporary tariff assignment is for the dock and 

yard area at Berth 40 which is part of the Seventh Street Terminal complex. They have 

recently requested a long term agreement at Berth 40 for a three to five year period with 

specific request for assignment of the agreement to Mr. Niemeth dba Bayside Dredging Co. 

Various improvements are presently, or will be, under construction in the vicinity of Berth 

May 17, 1994 

- 7 -

40 and the nearby area designated as Portview Park. It was recommended that the Board 

approve a one year License and Concession Agreement at the existing monthly rental of 

$3,998.00 per month as a long term agreement is not recommended at this time. The 


Award of Contract to Construct Security Fencing for the Period Commencing June 

1, 1994 and Ending May 31, 1995, 1996 or 1997 was the subject of a memo to the Board 

from the Deputy Executive Director notifying the Board of the two bids received and that 

the low bid with Dura Fence Company, at $299,515.98, contained an insufficient bid security. 

It was recommended that the contract be awarded to Golden Bay Fence Plus Ironworks, 

Inc., at $445,475.00, and that all other bids be rejected and bid securities be returned to the 

respective bidders. The recommendation was approved on passage of Resolution No. 94183. 

Award of Contract, Repair of Fishing Pier, Middle Harbor Park was the subject of 

a memo to the Board from the Deputy Executive Director notifying the Board of the seven 

bids received and recommending award of the contract to Inshore Divers, Inc., the low 

bidder, at $20,923.00. The recommendation was approved on passage of Resolution No. 

94184. - 

Award of Contract for 1994 Structural Inspection and Repair of Paceco Cranes was 


of the one bid received and recommending award of the contract to Marine Maintenance, 

Inc., the low bidder, at $138,160.00. The recommendation was approved on passage of 


Plans and Specifications for Construction of Queuing Lanes Along Ferro Street, 

Middle Harbor Terminal was the subject of a memo to the Board from the Deputy 

Executive Director recommending their approval and authority to advertise for bids. The 

work consists in general of widening Ferro Street Extension between Ferro Street proper 

and El Dorado Street. The street will be widened to the south by removing a small area 

from the A.P.L. yard. The project will provide two additional lanes and will be used as 

May 17, 1994 - 8 -

queuing lanes for A.P.L., thus minimizing queuing on Middle Harbor Road. The project 

is categorically exempt and does not require the preparation of an environmental document. 


Plans and Specifications for Dredging of Berths 20, 21, 23, 25, 26 and the 

Interconnecting Channel 30, 35, 60. 61, 62, 63, 67 and 68, and the Oakland Outer Harbor 

Channel Area was the subject of a memo to the Board from the Deputy Executive Director 

recommending their approval and authority to advertise for bids for the maintenance 

dredging which is necessary to permit adequate depth for ship operations. The project is 




Resources recommended the appointment of Marcus McCall, as a Port High School Intern, 

at $4.25 per hour; the rescission of appointment of Anthony Regaldo, Youth Aide, Class D 

(Port High School Intern), effective April 25, 1994; and the amendment of appointment for 

Juan Castenada, Gardener I, from May 9, 1994 to May 16, 1994 for his appointment date. 

Also recommended were the examination announcements for the classification of "Associate 

Port Environmental Planner"; and for the classification of "Telephone Operator." Further 

recommended were the terminations of Dennis D. Jefferson, Equipment Systems Engineer, 

for cause, effective the close of the work day of May 17, 1994; and David M. Aldape, 

Commercial Representative III-A, who is permanently disabled from performing his job, 

effective the close of the work day of May 17, 1994. The Port has fulfilled its obligation to 

the employee under Workers' Compensation. The recommendations were approved on 

passage of Resolution No. 94188 for Youth Aide, Class "D"; Resolution No. 94189 for 

certain appointments; Resolution No. 94190 for examination announcements; Resolution No. 

94191 for termination of David M. Aldape; and Resolution No. 94192 for Dennis D. 

Jefferson. 

May 17, 1994 - 9 -

Crane Insurance was the subject of a memo to the Board from the Director of 

Human Resources notifying the Board of the Port's "All Risk" policy including Earthquake 

& Flood Physical Damage Insurance on Port owned cranes and crane rails. The policy will 

be placed with Lloyd's of London and U.S. Insurers, with $50,000,000.00 "All Risk," 

$250,000.00 Deductible and 3% Earthquake & Flood Deductible. It is expected that 25% 

of this premium will be billed to our Marine Terminal tenants. It was recommended that 

the Risk Manager be authorized to place renewal "All Risk" for an approximate annual 

premium of $1,150,000.00 plus taxes and fees. The recommendation was approved on 


Automobile Liability Insurance was the subject of a memo to the Board from the 

Director of Human Resources recommending approval for the Risk Manager to renew the 

Aetna Casualty Automobile Policy with composite rate of $584.656 per vehicle and a deposit 

premium of $125,701.00. The policy is a $1,000,000.00, Automobile Liability (Owned, 

Nonowned and Hired); $50,000.00 per Occurrence Deductible; and $150,000.00, Annual 

Aggregate Deductible. The recommendation was approved on passage of Resolution No. 

94194. 

General Liability Insurance was the subject of a memo to the Board from the 

Director of Human Resources recommending approval for the Risk Manager to place 

renewal Airport Liability Insurance for $125,000.00 and Harbor General Liability Insurance 

with Lloyd's of London for $142,312.00 for a one year term effective May 20, 1994. The 

Airport General Liability policy contains a $200,000,000.00 for Bodily Injury Liability and 

Property Damage Liability; $25,000,000.00 for Personal Injury; $5,000.00 for Medical 

Payments; $100,000.00 for Annual Aggregate Self Insured Deductible; and $125,000.00 for 

Premium. The Harbor General Liability policy contains a $1,000,000.00 for Bodily Injury 

Liability and Property Damage Liability; $1,000,000.00 for Personal Injury Liability; 

$3,000,000.00 for Annual Aggregate; $1,000,000.00 for Public Officials Errors and Omissions; 

May 17, 1994 

- 10 -

and $100,000.00 per Occurrence and Deductible. The recommendation was approved on 


CAPA Umbrella Excess Liability Insurance and Public Officials Errors and 

Omissions Insurance was the subject of a memo to the Board from the Director of Human 

Resources recommending approval for the Risk Manager to place renewal with CAPA 

Umbrella Excess Insurance for approximately $190,000.00, renewal Maritime, Commercial 

Real Estate Errors and Omissions for $112,824.00, and Airport Errors and Omissions for 

$233,065.00. Excess Liability renewal policy provides: $150,000,000.00, General/ 

Automobile Liability per Port Authority; $1,000,000.00, Public Officials Errors & Omissions; 

and $1,000,000.00, Self-Insured Retention. The Public Officials and Errors and Omissions 

Liability Insurance will be with National Union Insurance Company for Maritime & 

Commercial Real Estate with $10,000,000.00, Per Wrongful Act; $15,000,000.00, Annual 

Aggregate in Excess of AAPA and CAPA Programs; and with Buckeye Union & Gulf 

Insurance Company for Airport with $10,000,000.00, Per Wrongful Act; $10,000,000.00, 

Annual Aggregate; and $100,000.00, Self-Insured Retention. The recommendation was 


Authorization to Sell Surplus Equipment and Materials was the subject of a memo 

to the Board from the Deputy Executive Director recommending that the Board authorize 

the Executive Director to sell various equipment and materials from the Airport and other 

Port locations, as surplus. The surplus equipment from the Airport includes passenger 

seating, office furniture, light fixtures, lockers, counters, parking meter heads, fabricated- 

metal parking booths, artificial plants, stanchions, miscellaneous kitchen appliances and 

assorted material and equipment. The recommendation was approved on passage of 


May 17, 1994 - 11 -

vote: 


Ayes: Commissioners Broussard, Cole, ]Kramer, Loh, Ortiz, Vohs 

Noes: None 

Absent: None 



ASSESSING PENALTY AGAINST BRAVA, INC., PRIME CONTRACTOR FOR 

CONSTRUCTION OF ARFF QUICK RESPONSE PAD, SOUTH FIELD, MOIA, 

OAKLAND, CALIFORNIA, FOR SUBCONTRACTING WORK WITHOUT 

DESIGNATING A SUBCONTRACTOR FOR SAID WORK IN ORIGINAL BID." 

"RESOLU'T'ION NO. 94174 

AUTHORIZING AND APPROVING SUBMITTAL OF AN APPLICATION TO 

THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT ("BAAQMD") 

FOR FUNDS TO BE PROVIDED FOR ELECTRIC BUSES AT THE 

METROPOLITAN OAKLAND INTERNATIONAL AIRPORT.," 


FINDING AND DETERMINING THAT IT ][S IN THE BEST INTEREST OF 

THE PORT TO PROCURE AIRCRAFT FIREFIGHTER SUITS WITHOUT 

COMPETITIVE BIDDING AND AUTHORIZING SAID PROCUREMENT ON 

THE OPEN MARKET." 


REJECTING ALL BIDS FOR REGRADE PAVERS, JACK LONDON SQUARE, 

OAKLAND, CALIFORNIA, DIRECTING RETURN OF BID BOND TO 

BIDDERS AND AUTHORIZING A CONTRACT IN THE OPEN MARKET 

WITHOUT COMPETITIVE BIDDING." 



LICENSE FOR NONFEDERAL USE OF REAL PROPERTY BETWEEN THE 

PORT AND THE UNITED STATES OF AMERICA, DEPARTMENT OF THE 

NAVY ("NAVY") AND THAT CERTAIN LICENSE AND CONCESSION 

AGREEMENT BETWEEN THE PORT AND THE UNION PACIFIC RAILROAD 

COMPANY." 


GRAN'T'ING OAKLAND PORTSIDE ASSOCIATES PERMISSION TO 


May 17, 1994 - 12 -



SUPPLEMENTAL AGREEMENT WITH JORDAN WOODMAN DOBSON, FOR 

ENGINEERING DESIGN CONSULTING SERVICES CONSTITUTES ES 


EXECUTION OF SAID THIRD SUPPLEMENTAL AGREEMENT." 


CERTIFYING THE BOARD'S REVIEW AND CONSIDERATION AS 

RESPONSIBLE AGENCY OF THE STATE OF CALIFORNIA'S EIR ON, AND 

THE ENVIRONMENTAL EFFECTS OF, THE PROPOSED CONSTRUCTION 

AND OPERATION OF VARIOUS HIGHWAY RAMPS SOUTH OF THE BAY 

BRIDGE TOLL PLAZA AS PART OF THE 1-880 CYPRESS FREEWAY 

REPLACEMENT, MAKING CERTAIN FINDINGS AND DETERMINATIONS 

IN CONNECTION THEREWITH AND APPROVING AND AUTHORIZING 

EXECUTION OF A RIGHT-OF-ENTRY AND INDEMNITY WITH THE 

STATE." 


APPROVING THE COST REIMBURSEMENT FOR REPLACEMENT OF 

CRANE BRAKE PADS UNDER MANAGEMENT AGREEMENT WITH 

MARINE TERMINALS CORPORATION." 



AND CONCESSION AGREEMENT WITH DOUGLAS C. NIEMETH DOING 

BUSINESS AS BAYSIDE DREDGING." 


REJECTING BID OF DURA FENCE COMPANY, INC.; AWARDING 

CONTRACT TO GOLDEN BAY FENCE PLUS IRONWORKS INC., FOR 

CONSTRUCTION OF SECURITY FENCING FOR THE PERIOD 

COMMENCING JUNE 1, 1994 AND ENDING MAY 31, 1995, 1996 OR 1997, 


PROVIDED IN CONNECTION THEREWITH; REJECTING ALL OTHER BIDS; 



AWARDING CONTRACT TO INSHORE DIVERS, INC., FOR REPAIR OF 

FISHING PIER, MIDDLE HARBOR PARK, OAKLAND, CALIFORNIA; FIXING 

THE AMOUNT OF BONDS TO BE PROVIDED IN CONNECTION 

THEREWITH; REJECTING ALL OTHER BIDS; AND DIRECTING RETURN 


May 17, 1994 

- 13 -


AWARDING CONTRACT TO MARINE MAINTENANCE INC., FOR 1994 

S I RUCTURAL INSPECTION AND REPAIR OF PACECO CRANES X-421 (S/N 

301) AT BERTH 38, X-423 (S/N 420) AT BERTH 37, SEVENTH STREET 

TERMINAL AND X-422 (S/N 395) BERTH 67, HOWARD TERMINAL, PORT 

OF OAKLAND, OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF 

BONDS TO BE PROVIDED IN CONNECTION THEREWITH." 



QUEUING LANES ALONG FERRO STREET, MIDDLE HARBOR TERMINAL, 

OAKLAND, CALIFORNIA; AND CALLING FOR BIDS THEREFOR." 


APPROVING PLANS AND SPECIFICATIONS FOR DREDGING OF BERTHS 

20, 21, 23, 25, 26 AND THE INTERCONNECTING CHANNEL 30, 35, 60, 61, 62, 

63, 67 AND 68 AND OAKLAND OUTER HARBOR CHANNEL AREA, 



APPOINTING MARCUS MCCALL TO THE POSITION OF YOUTH AIDE, 

CLASS "D"." 





APPROVING EXAMINATION ION ANNOUNCEMENTS FOR THE POSITIONS OF 

ASSOCIATE PORT ENVIRONMENTAL PLANNER AND '1'ELEPHONE 

OPERATOR." 


TERMINATING APPOINTMENT OF DAVID M. ALDAPE." 


TERMINATING APPOINTMENT OF DENN][S D. JEFFERSON." 


AUTHORIZING RENEWAL OF CRANE INSURANCE." 


May 17, 1994 

AUTHORIZING RENEWAL OF AUTOMOBILE LIABILITY INSURANCE." 

- 14 -


AUTHORIZING RENEWAL OF GENERAL LIABILITY INSURANCE 

(AIRPORT AND HARBOR)." 


AUTHORIZING RENEWAL OF CAPA NON-AIRPORT EXCESS LIABILITY 

INSURANCE AND PUBLIC OFFICIALS ERRORS AND OMISSION LIABILITY 

INSURANCE." 


FINDING AND DE I ERMINING THAT CERTAIN EQUIPMENT AND 

MATERIALS OWNED BY THE PORT ARE NO LONGER REQUIRED FOR 

PORT USE AND AUTHORIZING AND APPROVING THEIR SALE AT 

PUBLIC AUCTION OR PRIVATE SALE." 


GRANTING AIR TERMINAL SERVICES INCORPORATED AND RUDY 

LOMBARD DOING BUSINESS UNDER THE FIRM NAME AND STYLE OF 

ATS-LOMBARD FOOD SERVICES PERMISSION TO PERFORM CERTAIN 

WORK." 


GRANTING EMBARCADERO COVE ENTERPRISES PERMISSION TO 



GRANTING BLUE AND GOLD FLEET, INC. PERMISSION TO PERFORM 



GRANTING AMERICAN PRESIDENT LINES, LTD., PERMISSION TO 



GRANTING OAKLAND PORTSIDE ASSOCIATES ES PERMISSION TO 



OF CONDOLENCE OF THE PASSING OF CHARLES J. PATTERSON." 

Port Ordinance No. 3211 being, "AN ORDINANCE AUTHORIZING THE 

EXECUTION OF MANAGEMENT AGREEMENT WITH MARINE 'TERMINALS 

CORPORATION," and Port Ordinance No. 3212 being, "AN ORDINANCE 

May 17, 1994 

- 15 -

AUTHORIZING THE EXECUTION OF I ERMINAL USE AGREEMENT WITH 

HANJIN SHIPPING COMPANY, LTD," were read a second time and passed by the 



Noes: None 

Absent: None 


At the hour of 3:45 p.m, the Board entered into closed session to discuss Labor 

Negotiations pursuant to Government Code Section 54957.6 and reconverted in open session 

at the hour of 4:20 p.m. at which time the meeting was adjourned on a motion duly made 

and seconded. 

May 17, 1994 

4-1 (I 71 7/{7 

'-" 


- 16 -




The meeting, formal portion, was held on Tuesday, June 7, 1994, at the hour of 3:50 

p.m., in the office of the Board, second floor, 530 Water Street, Oakland, California, 



received a draft of the operating budget for 1994-95 and 1995-96. 

Commissioners present: Broussard, Cole, Kramer, Loh, Vohs and 


Commissioners absent: Commissioner Ortiz - 1 


Director of Aviation; Director of Commercial Real Estate; Director of Human Resources; 

Director of Maritime; Director of Governmental Affairs; Director of Policy and Strategic 

Planning; Director of Equal Opportunity; Director of Public Affairs; Senior Commercial 

Representative; Chief Engineer; Chief of Facilities; and Secretary of the Board. 

The minutes of the regular meeting of May 17, 1994 and the regular meeting of 

January 4, 1994 were approved as submitted and ordered filed. 



Commissioner Broussard, member of the Commercial Real Estate Committee, 

informed the Board that the committee had met and reviewed their current agenda. 



Recommended Approval of North Airport Fee Increases was the subject of a memo 

to the Board from the Director of Aviation notifying the Board of the Board's policy of 

linking rates and charges of certain North Airport activities and properties to the previous 

calendar year's Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-

W). The San Francisco-Oakland area calendar year 1993 CPI-W increase was 1.7%, and 

it was recommended that the Board adopt an ordinance to reflect the increase for the Blimp 

pad, tiedown space, T-hangar space, Port-a-Port space and Ramp space. The 


Proposed Revisions of Airline Secondary Use Fees was the subject of a memo to the 

Board from the Director of Aviation notifying the Board that the rates and charges 

established each calendar year for the airlines operating at Oakland International Airport 

are documented in Port Ordinance 1149, and are based on actual operating results for the 

fiscal year ending June 30. These rates and charges are then reviewed with the airlines 

operating at Oakland prior to Board action. The Airport staff has been developing a rate 

methodology for Secondary Use Fees that would more accurately reflect the recovery of 

operating expenses. The goal at the Airport is to establish an expense recovery system that 

is a reflection of airport operating expenses and a Secondary Use Fee schedule based upon 

the yearly expense of operations per enplaned passengers as calculated in the annual rates 

and charges report has now been developed. It was recommended that the Board adopt the 

following rates for secondary users: Charter Counter Use Fee - $125 per four hour use; 

Based Tenant Operator with Holdroom - $158.60 per enplaning operation; Based Tenant 

Operators without Holdroom Charge - $1.22 per enplaning passenger arid Loading Bridge 

Charge - $0.09 per enplaning passenger; Affiliated Operator Holdroom Charge - $1.22 per 

enplaning passenger and Loading Bridge Charge - $0.09 per enplaning passenger; Affiliated 

Operator using Small Aircraft Holdroom Charge - $1.22 per enplaning passenger; Non- 

Based, Non-Tenant Operator Terminal Use Fee - $1.07 per enplaning passenger, Holdroom 

Charge - $1.44 per enplaning passenger, Loading Bridge Charge - $0.11 per enplaning 

passenger and Security Fee - $40.00 per enplaning operation; and Baggage - All based 

tenant operators with holdroom are subject to a baggage claim charge utilizing a 20/80 

formula whereby 20% of the cost is divided equally among the operators, and the remaining 

80% is shared by based and affiliated operators and computed on deplaned passenger 

June 7, 1994 

- 2 -

activity. Non-based, non-tenant operators are subject to a baggage claim charge of $0.58 

per deplaning passenger. The recommendation was approved on passage of an ordinance 

to print. 

Acceptance of Noise and Avigation Easement and Covenants Running with the Land 

from Steven and Darlene Ahlberg was the subject of a memo to the Board from the 

Director of Aviation notifying the Board of the 1980 Agreement between Harbor Bay Isle 

Associates (HBIA), a partnership, and the Port whereby HBIA was required to grant to the 

Port a noise easement and covenant over a portion of Bay Farm Island land it was then 

planning to develop. The subject land was near the departure end of the runways at the 

Airport. The covenant provided, among other things, that the subject land shall not be 

developed for public schools. In exchange, the Port agreed not to object to the development 

of this land for certain uses including commercial and manufacturing. The Port retained the 

right to object to certain uses including school use. In 1989, an arrangement with HBIA 

arose out of HBIA's desire to sell a site for private school use. The Port agreed in 1989 not 

to object to the proposed Kindercare private school use if, in addition to the 1980 

requirements, the Port received an easement for the flight of aircraft through the Kindercare 

site's air space and an indemnification against claims. The Port has now been offered a 

flight avigation easement and indemnification against claims from Steven and Darlene 

Ahlberg, husband and wife, who proposed to develop a private school located at 2275 North 

Loop Road, Alameda, CA, separated from the Kindercare site by only two parcels. The 

Ahlbergs are owners of a site in the portion of the Bay Farm Island covered by the above 

1980 Agreement with HBIA and the site already is subject to the noise easement and 

covenant running with the land granted pursuant to the 1980 Agreement. It was 

recommended that the Board accept the Noise and Avigation Easement and Covenants 

June 7, 1994 

3

unning with the land from Steven and Darlene Ahlberg. The recommendation was 


Award of Interim Contract for Valet Parking Service at the Airport was the subject 

of a memo to the Board from the Director of Aviation notifying the Board that West Coast 

Parking Co., the current Airport parking operator, was requested by the Port to start and 

operate a valet parking program. The program was instituted on October 1, 1992 and has 

not been successful to date. Efforts by the Port to have West Coast Parking improve the 

quality of the services has been unsuccessful, thereby affecting valet parking revenue. After 

review of other valet parking services at other airports, the inquiries led to Burbank Airport 

and Seattle/Tacoma Airport which have very successful valet parking programs operated by 

Valet Parking Service (VF'S). Per the proposal VPS has submitted, the valet service at the 

Airport should generate $1.4 million annually. The Port agrees to split net revenues with 

VPS at a rate of 6% to VPS and 94% to the Port. It was recommended that the Board 

authorize an agreement with Valet parking Service to operate the Valet Parking program 

at the Oakland Airport on an interim basis. The interim agreement is to start July 1, 1994, 

on a month-to-month basis not to exceed one (1) year. The recommendation was approved 


A royal of New License and Concession A eement with Existin Tenant Martinair 

Holland (#1 Airport Drive. South Air port) was the subject of a memo to the Board from 

the Director of Aviation recommending approval of a new agreement with Martinair for 403 

square feet of ticket counter, 406.52 square feet of office and 1,887 square feet of bag make- 

up space in Building M-101, Terminal I, at $125.00 each two-hour use, effective May 1, 


Approval of New License and Concession Agreement with Donald F. Jones and 

Ronald F. Jones dba California Flight Training (9351 Earhart Road, North Airport) was 

the subject of a memo to the Board from the Director of Aviation recommending approval 

of a new agreement with Donald F. Jones and Ronald F. Jones dba California Flight 

June 7, 1994 

- 4 -

Training for 564 square feet of office space in Building L-142, North Airport, at $652.64 per 

month, effective February 1, 1994. The recommendation was approved on passage of 


Approval of Agreements to Renew License and Concession Agreements for the Term 

of One Year or Less with Astro-Aire Enterprises (1030 Langley Street, North Airport), Emily 

Kim Kucer dba Kimair Company (1039 Wright Street. North Airport). Francis R. Grinnon 

(9351 Earhart Road, North Airport), Mate G. Marlais dba Artisan Manufacturing Company 

(1070 Wright Street. North Airport). and Pacific Gas & Electric Company (7843 Earhart 

Road. North Airport) was the subject of a memo to the Board from the Director of Aviation 

recommending approval to renew the following agreements for space on the North Airport: 

Astro-Aire for 1,837 square feet of storage space located in Building L-731, at $439.18 per 

month, effective April 1, 1994; Emily Kim Kucer dba Kimair Company for 12,379 square 

feet of warehouse space in Building L-721, at $2,964.40 per month, effective June 1, 1994; 

Francis R. Grinnon for 408 square feet of office space and 170 square feet of storage space 

located in Building L-142, at $511.38 per month, effective April 1, 1994; Mate G. Marlais 

dba Artisan Manufacturing Company for 3,833 square feet of shop space and 2,400 square 

feet of paved land at Building L-643, at $1,135.65 per month, effective June 1, 1994; and 

Pacific Gas & Electric Company for 1,017 square feet of office space(1st floor), 648 square 

feet of office space (2nd Floor), 11,103 square feet of hangar, 2,764 square feet of shop/ 

storage, 28,450 square feet of adjacent apron and 9,875 square feet of adjacent paved 

parking at Port Building No. L-810, Hangar 8, Bay B, at $6,389.24 per month, effective 

November 1, 1993. The recommendation was approved on passage of Resolution No. 

94208. 

Award of Contract for Construction of Asphalt Concrete Overlay of Taxiway 1, South 

Airport. MOIA was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the two bids received and recommending award of the contract to 

June 7, 1994 

5

Gallagher & Burk, Inc., the low bidder, at $3,714,563.00. The recommendation was 


Authorization to Enter into an Agreement with the Department of Toxic Substances 

Control for Lot 12 was the subject of a memo to the Board from the Director of 

Commercial Real Estate notifying the Board that the Port is negotiating with a developer 

to construct a movie theatre on Lot 12, a 40,000 square foot site located at the corner of 

Washington and Embarcadero Streets across from the Washington Street Garage. The Port 

currently operates Lot 12 as a surface parking lot. Pacific Gas & Electric Company and/or 

its predecessors owned and operated a gas manufacturing plant at the site. Due to the 

presence of hazardous substance contamination associated with past activities at the site, and 

in accordance with Port Resolution No. 93245, the Port's consultant prepared a Preliminary 

Endangerment Assessment (PEA), an in-depth report analyzing hazardous substance 

contamination, the proposed development, and recommended remedial actions. The Port 

sent the PEA to the State of California Environmental Protection Agency Department of 

Toxic Substances Control (DTSC), the State regulatory agency having jurisdiction over 

PEAS. The Port also paid a fee of $8828.00 to DTSC for DTSC's review of the PEA. 

DTSC approval of the PEA is a necessary step in obtaining certification from the State 

which will allow the Port to proceed with the movie theatre development on Lot 12. The 

DTSC has informed the Port that because the Port's PEA also contains a technical 

document known as a Human. Health Risk Assessment (HHRA), which DTSC required, the 

fee paid by the Port will not be sufficient to cover the costs of DTSC's review of both 

documents. Also, once the review of the PEA and HHRA are complete, the DTSC will 

require additional fees for oversight of any additional soil and ground water testing and/or 

cleanup actions. The DTSC will require the Port to enter into a "walk-in" agreement which 

commits the Port to paying DTSC's costs incurred during work on the Lot 12 project. It was 

recommended that the Board authorize the payment of up to $75,000.00 for DTSC's review 

and oversight of activities at Lot 12 and authorize the Executive Director to execute the 

June 7, 1994 6

walk-in agreement with DTSC. The recommendation was approved on passage of 


Recommendation to Approve Sale to Caltrans of a Strip of Port Property Located 

between Radio Road and the Interstate for the State Interstate 80/880 Project was the 

subject of a memo to the Board from the Director of Commercial Real Estate notifying the 

Board that Caltrans intends to widen 1-80 adjacent to the existing toll booth area to 

construction a bus pad, arid to relocate a portion of the existing access road which serves 

Port tenants, KDIA, KIQI, and KABL. The State requires both fee and easement rights in 

order to construct this project. The larger site, primarily under water, consists of an 

irregularly shaped multiple acre parcel northeast of the Bay Bridge Toll Plaza. The area 

required by Caltrans is composed of a narrow strip of land parallel and contiguous to the 

freeway and running easterly from the east side of the new toll plaza to east of the tenant 

access road entrance. Caltrans requires 27,172 square feet in fee for a proposed bus stop, 

road widening, and a temporary construction easement containing 66,160 square feet for 

storage of equipment and materials during construction. The easement will expire January 

1, 1998. Caltrans has made a written offer for purchase of the fee and easement based on 

an appraisal dated May 13, 1994, in the amount of $137,350.00. Caltrans has also 

committed to expend an additional $150,000.00 to realign and improve the Port tenants' 

existing access road. Road construction in this area was evaluated by Caltrans in the 

Environmental Impact Statement/Report on the 1-880 Cypress Freeway replacement. The 

Port has reviewed this EIR/S and finds that the EIR/S is complete in addressing this project 

and no further environmental review is required pursuant to the requirements of the 

California Environmental Quality Act and the Port CEQA guidelines. It was recommended 

that the Board certify the Board's review and consideration of Caltrans' EIR/S and finding 

that the project will not have a significant effect on the environment. It was also 

recommended that the Board give first reading to an ordinance to approve the sale and 

June 7, 1994 

- 7 -

conveyance of Port property to Caltrans for the 1-80/880 project. The recommendation was 

approved on passage of Resolution No. 94211 and on an ordinance to print. 

Approval of License Agreement from the Navy to the Port Covering 75 Acres at the 

Naval Supply Center was the subject of a memo to the Board from the Director of 

Commercial Real Estate notifying the Board that the proposed lease between the Navy and 

the Port will not be available until the environmental certificates are completed which is 

expected in October, 1994. In order to allow for work access to the site to accommodate 

interest on behalf of other tenants, it was recommended that the Board authorize a lease 

agreement with the Navy for the 75.42 acres. The recommendation was approved on 


Approval of Second. Supplemental Agreement with Tidewater Investors, a California 

Limited Partnership, Jim H. Ishimaru and William B. Baner was the subject of a memo 

to the Board from the Director of Commercial Real Estate notifying the Board that the Port 

consented to an assignment of the Lease with Tidewater Properties, a joint venture of 

Guilltone Properties, Ltd., a California Limited Partnership, and Oakland Business 

Development Corporation, a California Non-profit Public Benefit Corporation, to Jim H. 

Ishimaru, an individual. Tidewater Properties had a 55-year lease for a warehouse 

development on 5.64 acres of unimproved land located on Tidewater Avenue at Lesser 

Street. The Lease is to expire in 2045. Tidewater Properties signed a Deed in Lieu of 

Foreclosure in favor of Civic Bank of Commerce, the construction lender for the project. 

The Port also adopted an ordinance on December 7, 1993, approving modifications to the 

lease which included a four-year option to purchase the land. The total purchase price of 

the land was approved at $500,000.00. The rent to be paid to the Port during the option 

period is 10% of the gross receipts up to $40,000.00 per year. If there is not sufficient cash 

flow to pay the 10% of the gross receipts per year, the difference between the actual rent 

paid and the $40,000.00 will be added, pro rata, to the option purchase price. The minimum 

rent after the expiration of the option period was also established at $65,000.00 per year 

June 7, 1994 

- 8 -

against 10% of the gross receipts. Mr. Jim H. Ishimaru, the lessee by assignment, has 

finalized his negotiations with Civic Bank of Commerce and has formed Tidewater Investors, 

California Limited Partnership, to assume the lease. The current leasehold ownership would 

be Tidewater Investors, a California Limited Partnership, Jim H. Ishimaru, an individual, 

and William B. Baner, an individual, as tenants in common. It was recommended that the 

Board approve the Second Supplemental Agreement with Tidewater Investors consent to 

all the assignments which have lead to the current leasehold ownership. The 


"Grant of Easement" to the East Bay Municipal Utility District for the Construction 

of a 699.5 s.f. Addition to their Existing Wet Weather Dechlorination Facility near the Bay 

Bridge was the subject of a memo to the Board from the Director of Commercial Real 

Estate notifying the Board of a previous Right of Entry Agreement for the purpose of 

constructing a 699.5 square foot addition to their existing Wet Weather Dechlorination 

Facility, on Port property near the Bay Bridge. The Right of Entry Agreement was used 

only to accommodate EBMUD's accelerated construction schedule. The intention was that 

the Port and EBMUD would eventually enter into a long-term agreement for the use of the 

Port property. It was recommended that the Board grant the easement to EBMUD, and 

accept the proposed compensation in the amount o $4,200.00. The recommendation was 

approved on an ordinance to print. 

Amtrak Station Ground Transportation Computerized Information Systems Project 

was the subject of a memo to the Board from the Director of Commercial Real Estate 

notifying the Board that the California Department of Transportation Division of Rail 

received $250,000.00 for a computerized transportation information system project for the 

Amtrack stations. The purpose of the project is to provide information to passengers about 

transportation services available around the state. The system will be at Oakland's new Jack 

London Square train station, as well as other train stations throughout the state. The 

objective of the system is to link 10 other Amtrak stations together via this computer system. 

June 7, 1994 - 9

In order for the Division of Rail to encumber the funding for the demonstration project 

before the end of the fiscal year, they requested that the Port of Oakland be the recipient 

of the $250,000.00 grant for the project. The Port would act in conjunction with the Division 

of Rail to administer the project, and coordinate the vendor selection. The Port took the 

lead and participated in a similar program in 1992-1993 with the Oakland Airport and this 

system was installed in late 1993. It was recommended that the Board authorize a Joint 

Powers Agreement contract with the California Department of Transportation Division of 

Rail to administer the $250,000.00 grant for the project, and to enter into an agreement for 

the purchase of these units from a vendor. The recommendation was approved on passage 


Recommended Approval of New License and Concession Agreement with Mission 

Pallet, Inc. for the Use of 69,750 s.f. of Vacant Land near Kennedy and Diesel Streets 


recommending approval of an agreement with Mission Pallet, Inc. for 69,750 square feet of 

vacant land at Kennedy and Diesel Streets, at $3,487.50 per month, effective March 23, 


Recommended Approval of New License and Concession Agreement for Roger S. and 

Susan A. Ferrari, dba Jal-Vue-East Bay Glass Company at 295 Sixth Avenue was the subject 

of a memo to the Board from the Director of Commercial Real Estate recommending 

approval of a new agreement with Roger S. Ferrari and Susan A. Ferrari dba Jal-Vue-East 

Bay Glass Company for 17,750 square feet of warehouse space in Building H-101 and 12,606 

square feet of yard space, at $4,180 per month, effective July 1, 1994. The recommendation 


Rescinding Award of Contract, Forfeiture of Bid Security and Authorization to 

Negotiate a Contract for Installation of Above Ground Fuel Storage Tank at Berth 67 was 


that the Board previously authorized the award of the contract for installation of above 

June 7, 1994 

- 10 -

ground fuel storage tank, l3erth 67 to P.T.S. Environmental Service. On February 10, 1994, 

PTS received the contract with a cover letter requesting them to return the signed contract 

and the required bonds and insurance documents to the Port Attorney not later than 

February 18, 1994. The Port has received the signed contract along with the necessary 

bonds from PTS without the required proof of insurance certificates. PTS has been 

contacted on many occasions to remind them of the need for the insurance certificates. On 

April 25, 1994, PTS was notified by letter that if the insurance certificates were not received 

by May 4, 1994, its bid security would be forfeited. On May 2, 1994, the Port received a 

faxed letter from PTS stating that its insurance broker took the insurance payment but never 

applied it to a policy. The May 2, 1994 letter also requested a two-week extension of the 

May 4, 1994 deadline (May 18) to process the necessary insurance with a different company. 

To date, the required insurance documents have not been received. It was recommended 

that the award of this contract to P.T.S. Environmental Service be rescinded and that P.T.S. 

Environmental Service's bid security be forfeited to the Board and authorization be given 

to the Executive Director to execute a contract for the work based on the receipt of 

informal quotations. The recommendation was approved on passage of Resolution No. 

94217. 

Trans Pacific Cont iner Service Corp.. Secondary Use Requests at Berth 30 was the 


Nonexclusive Preferential Assignment Agreement with Mitsui O.S.K. Lines for Berth 30 

which is presently assigned to their terminal subsidiary, Trans Pacific Container Service. 

The Agreement grants TraPac the right to make secondary assignments upon prior written 

approval of the Port's Executive Director. Port tariff charges for such secondary 

assignments are to be shared equally on a fifty percent (50%) basis. TraPac recently 

requested our review of the secondary use provisions in the Berth 30 Agreement in light of 

similar provisions in other marine terminal agreements. Based upon these discussions it was 

recommended that the Board modify the agreement to provide that if TraPac obtains a five 

June 7, 1994 - 11 -

year term commitment from a secondary user, applicable Port tariff charges will be split 

60% to TraPac and 40% to the Port. If for any reason a secondary user doesn't fulfill the 

five year commitment TraPac will be obligated to guarantee the Port 50% sharing rather 

than the 40% sharing for the full period of that secondary user's activity at the Berth 30 

facility. TraPac has advised the Port of successful negotiations for a five year term 

commitment for secondary usage of Berth 30 by Nedlloyd Linjen, B.V. Nedlloyd is a Dutch 

shipping line with various liner services and will use Berth 30 as its regularly published 

Northern California port of call. It was recommended that the Board consent to TraPac's 

request to share secondary use revenue from Nedlloyd. The recommendation was approved 

on passage of Resolution No. 94218 and Resolution No. 94219. 

Supplemental Agreement with Hanjin Shipping Company, Ltd. was the subject of a 

memo to the Board from the Director of Maritime notifying the Board that the Board on 

May 3, 1994 approved a new five year TUA for Hanjin's continued operation at the Seventh 

Street facility, commencing July 1, 1994. One of the major inducements in the new TUA 

is a 20% discount of the Port's prevailing tariff rate for wharfage at the time of cargo 

activity at the terminal and an additional wharfage refund at the conclusion of the contract 

year based on achievement of the following annual volume levels: 20,000 - 29,999 loaded 

TEU's - 20%; 30,000 - 39,000 loaded 1 hUs - 25%; and 40,000 or more loaded I EU's - 30%. 

Another major inducement is a refund at the conclusion of the contract year for Hanjin's 

interior Point Intermodal Throughput Service ("IPI") cargo. "IPI" cargo offers the Port 

revenue growth opportunities since it is defined in the new TUA as cargo originating or 

terminating outside the states of Arizona, California, Nevada, Oregon and Washington. If 

Hanjin exceeds 7,500 loaded "IPI" 1hUs in a contract year, then Hanjin will be refunded 

$10.00 per loaded "IPI" TEU for each "IPI" I EU which exceeds said 7,500 'I EUs. To 

further provide inducements, it is now recommended that the Board amend the agreement 

to provide two more tiers for additional discounts at the conclusion of the contract year, 

based on the following volume levels: 55,000 - 64,999 loaded IEUs - 35%; and 65,000 or 

June 7, 1994 

- 12 -

more loaded TEUs - 40%. Also recommended was the modification of the previously 

approved "IPI" incentive to provide that if Hanjin's "IPI" cargo at the terminal equals or 

exceeds 4,000 loaded 'I EUs in a contract year, Hanjin will be refunded an additional 

discount of $10.00 per loaded '1BU of "IPI" cargo, including all such 'I EUs in that contract 

year, following conclusion of the contract year. The recommendation was approved on 


Award of Contract to Remove Underground Fuel Storage Tank HF-03, 370 Eighth 

Avenue was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the nine bids received and recommending award of the contract to 

Environmental Investigation and Action, Inc., the low bidder, at $17,887.25. The 


Revision to Compensation Provisions in the Yang Ming Terminal Use Agreement was 

the subject of a memo to the Board from the Director of Maritime notifying the Board that 

Yangming Line is a major Republic of China flag container shipping line which calls at the 

Seventh Street Marine Container Terminal where terminal services are provided by Marine 

Terminals Corporation. The line has been calling Oakland in accordance with a five year 

Terminal Use Agreement which will expire in 1996. Compensation terms in the TUA 

provide for payment at fifty percent (50%) of the prevailing Port tariff wharfage rates for 

local cargo and forty percent (40%) of wharfage tariff rates for Interior Point Intermodal 

Throughput Service ("IPI") cargo as such activity occurs. The existing Yangming Agreement 

is unlike any other Port TUA in that the shipping line receives its full benefit at the time 

the activity occurs. All other TUAs protect the Port against unpaid receivables by providing 

for partial discounts as the activity occurs with additional discount incentives at the 

conclusion of each contract year. An understanding has been reached with Yangming to 

amend their TUA so that it is in line with all other TUAs. Yangming agrees to pay the Port 

sixty percent (60%) of the prevailing wharfage tariff charges for local cargo and fifty percent 

(50%©) of wharfage tariff charges for "IPI" cargo as such activity occurs. At the conclusion 

June 7, 1994 

- 13 -

of each contract year the Port will refund ten percent (10%) of the wharfage tariff charges 

for all cargo handled during the contract year. It was recommended that the Board 

authorize the change in the agreement. Also recommended was approval to delete the 

empty container provisions from the Yangming TUA as the new agreement with MTC 

would limit the amount of empty containers for all carriers on the facility. The 


Rejection of Bids, Installation of Roof Drains and Drainage Crickets, Building C- 

127, 700 Ferry Street was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the three bids received and recommending that all bids be 

rejected and bid securities be returned to the respective bidders, as the tenant, Maersk lines 

has now requested review of their terminal layout which could provide for the demolition 

of the building. The recommendation was approved on passage of Resolution No. 94223. 

Authorization to Contract for Modification of Boom Lower Chord on Kocks Cranes 

No. 1 (X425) and No. 2 (X424) was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board that during the first triennial structural inspection 

of the three Kocks Crane and Marine Company cranes at the Seventh Street Marine 

Container Terminal, cracks in the boom lower chords were found by inspection agency 

personnel on all three cranes. Normally, when cracks are found, they are ground out and 

then welded as part of the inspection service contract. If the crane is still in the warranty 

period, the repair costs would be the responsibility of the crane manufacturer. Crane No. 

1 (X425) and Crane No. 2 (X424) are out of warranty, with Crane No. 3 (X426) still in the 

warranty period, and KCMC was contacted for their recommended repair procedure and 

an estimate of the cost of the repair. KCMC has recommended modifications to the boom 

lower chords structure where the weld failures occurred. The modifications are intended 

to permanently eliminate cracking in the area so rewelding cracks in the area will not be 

required again in few years. KCMC will make the modifications on Crane No. 3 as it is still 

under warranty and has quoted a price of $186,190.00 per crane to make the modifications 

June 7, 1994 - 14 -

on Cranes 1 and 2. The estimated cost to simply repair the cranes by grinding out and 

welding the cracks is $140,000.00 per crane but there would be no guarantee that the welded 

areas would not develop similar cracks in the future. It was recommended that the Board 

find it to be in the best interest of the Port to dispense with formal bids for the work and 

authorize the preparation and execution of a contract with Kocks Crane and Marine 

Company for the work at a cost of $372,380.00. The recommendation was approved on 



Resources recommended the appointments of Reynaldo Mercado, as Equipment Systems 

Engineer, effective June 13, 1994, at $4,161.00 per month; Michael B. Pociecha, as 

Carpenter, effective June 20, 1994, at $3,765.00 per month; Debra Taraskewich, as Port 

Principal Systems Planning Analyst, effective June 13, 1994, at $4,831.00 per month; and the 

following college interns: Andre Aikens for Engineering Facilities Branch, Archie Arcellious 

for Engineering Facilities Branch, Bennett Carpeter for Office of Equal Opportunity, Rene 

Castellanos for Personnel and Employee Services Department, Nicole Franklin for 

Engineering Facilities Branch, Mayachela Garcia for Public Affairs Department, and 

Maghamil Lemuel for Airport Properties Department. Also recommended was the creation 

of the Port-unique Civil Service classification of "Airport Parking/Ground Transportation 

Administrator" and approved of the corresponding Job Specifications and Assignment of 

Salary Schedule.. The recommendations were approved on Resolution No. 94225 for 

appointments, Resolution No. 94226 for job specification and on an ordinance to print. 


the Board recommending the travel of the Director of Aviation and the Aviation Marketing 

and Communication Services Manager to Seoul, Korea; Taipei, Taiwan; and Hong Kong, 

on or about the period June 17 - 24, 1994, to meet with air carriers and freight 

forwarders. The recommendation was approved on passage of Resolution 94227. 

June 7, 1994 

- 15 -

vote: 



Noes: None 




ACCEPTING GRANT OF NOISE AND AVIGATION EASEMENT AND 

COVENANTS RUNNING WITH THE LAND FROM STEVEN AHLBERG AND 

DARLENE AHLBERG, OWNERS OF LAND ON BAY FARM ISLAND, CITY 

OF ALAMEDA." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN INTERIM 

AGREEMENT WITH VALET PARKING SERVICE." 



AND CONCESSION AGREEMENT WITH MARTINAIR HOLLAND." 



AND CONCESSION AGREEMENT WITH DONALD F. JONES AND RONALD 

F. JONES DBA CALIFORNIA FLIGHT TRAINING." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN 

AGREEMENTS TO RENEW LICENSE AND CONCESSION AGREEMENTS 

FOR TERMS OF ONE YEAR OR LESS ("RENEWAL AGREEMENTS") WITH 

ASTRO-AIRE ENTERPRISES, EMILY KIM KUCER DBA KIMAIR COMPANY, 

FRANCIS R. GRINNON, MA IE G. MARLAIS DBA ARTISAN 

MANUFACTURING COMPANY, AND PACIFIC GAS & ELECTRIC 

COMPANY." 


AWARDING CONTRACT TO GALLAGHER & BURK, INC., FOR 

CONSTRUCTION OF ASPHALT CONCRE IE OVERLAY OF TAXIWAY 1, 

SOUTH FIELD, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 




June 7, 1994 - 16 -


APPROVING AND AUTHORIZING EXECUTION OF THE VOLUNTARY 

CLEANUP AGREEMENT BETWEEN THE PORT AND THE STATE OF 

CALIFORNIA, ENVIRONMENTAL PROTECTION AGENCY, DEPARTMENT 

OF TOXIC SUBSTANCES CONTROL." 

"RESOLU 110N NO. 94211 

CER'TIF'YING THE BOARD'S REVIEW AND CONSIDERATION AS 

RESPONSIBLE AGENCY OF THE STATE OF CALIFORNIA'S EIR ON, AND 

THE ENVIRONMENTAL EFFECTS OF, THE PROPOSED ROAD WIDENING, 

RELOCATION OF EXISTING ACCESS ROAD, CONSTRUCTION OF 

RETENTION POND, CONSTRUCTION OF A BUS PAD, EXTENSION OF 

TOLL BRIDGE TUNNEL AND CONSTRUCTION OF RETAINING WALL, 

NORTH OF THE BAY BRIDGE TOLL PLAZA AS PART OF THE 1-880 

CYPRESS FREEWAY REPLACEMENT, AND MAKING CERTAIN FINDINGS 

AND DETERMINATIONS IN CONNECTION THEREWITH." 



FOR NONFEDERAL USE OF REAL PROPERTY, NAVFAC 11011/29 (6-75) 

(SUPERSEDES NAVDOCKS 2260) ("AGREEMENT') WITH THE UNITED 

STATES OF AMERICA, ACTING THROUGH THE DEPARTMENT OF THE 

NAVY." 


APPROVING AND AUTHORIZING EXECUTION OF SECOND 

SUPPLEMENTAL AGREEMENT WITH TIDEWATER INVESTORS, JIM H. 

ISHIMARU AND WILLIAM B. BANER, AMENDING PORT LEASE WITH 

TIDEWATER PROPERTIES." 


APPROVING AND AUTHORIZING PARTICIPATION IN THE CALIFORNIA 

DEPARTMENT OF TRANSPORTATION DIVISION OF RAIL 

COMPUTERIZED TRANSPORTATION INFORMATION SYSTEM 

DEMONSTRATION PROJECT AND AUTHORIZING EXECUTION OF AN 

AGREEMENT FOR GRANT RELATING THERETO." 



AND CONCESSION AGREEMENT WITH MISSION PALLET, INC." 


June 7, 1994 


AND CONCESSION AGREEMENT WITH ROGER S. FERRARI AND SUSAN 

A. FERRARI DBA JAL-VUE-EAST BAY GLASS COMPANY." 

- 17 -


DECLARING FORFEITURE OF BID SECURITY OF PLACER ENERGY 

SYSTEMS, INC., FOR INSTALLATION OF ABOVE GROUND FUEL 

STORAGE TANK, BERTH 67, OAKLAND, CALIFORNIA, AUTHORIZING 

COLLECTION ON THE BID SECURITY, AND FINDING THAT IT IS IN THE 

BEST INTERESTS OF THE PORT TO CONTRACT THE WORK WITHOUT 

COMPETITIVE BIDDING AND AUTHORIZING THE EXECUTIVE 

DIRECTOR TO ENTER INTO A CONTRACT FOR SUCH WORK BASED ON 

RECEIPT OF INFORMAL PROPOSALS." 


AUTHORIZING EXECUTION OF THIRD SUPPLEMENTAL AGREEMENT 

WITH TRANS PACIFIC CONTAINER SERVICE CORPORATION." 


CONSENTING TO ASSIGNMENT OF SECONDARY USE BY TRANS PACIFIC 

CONTAINER SERVICE CORPORATION TO NEDLLOYD LINJEN, B.V. 

PURSUANT TO LONG TERM USE AGREEMENT WITH NEDLLOYD 

LINJEN, B.V." 


AUTHORIZING EXECUTION OF FIRST SUPPLEMENTAL AGREEMENT 

WITH HANJIN SHIPPING COMPANY LTD." 


AWARDING CONTRACT TO ENVIRONMENTAL INVESTIGATION AND 

ACTION, INC., FOR REMOVAL OF UNDERGROUND FUEL STORAGE 

TANK HF-03, 370 8TH AVENUE, OAKLAND, CALIFORNIA; FIXING THE 


REJECTING ALL OTHER BIDS; AND DIRECTING RETURN OF BID BONDS 

TO BIDDERS." 

"RESOLUI ION NO. 94222 

AUTHORIZING EXECUTION OF FIRST SUPPLEMENTAL AGREEMENT 

WITH YANG MING MARINE TRANSPORT CORPORATION." 


REJECTING ALL BIDS FOR INSTALLATION OF ROOF DRAINS AND 

DRAINAGE CRICKETS BUILDING C-127, 700 FERRY STREET, OAKLAND, 

CALIFORNIA." 

June 7, 1994 - 18 -


FINDING AND DE1ERMINING THAT IT IS IN THE BEST INTEREST OF 

THE PORT TO CONTRACT FOR MODIFICATION OF BOOM LOWER 

CHORDS OF CRANE NO. 1 (X425) AND CRANE NO. 2 (X424) AT SEVENTH 

STREET REET TERMINAL, OAKLAND, CALIFORNIA, WITHOUT COMPE'llTIVE 

BIDDING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER 

INTO A CONTRACT FOR SUCH WORK WITH KOCKS CRANE AND 

MARINE COMPANY." 




APPROVING JOB SPECIFICATION FOR THE POSITION OF AIRPORT 

PARKING/GROUND TRANSPORTATION ADMINISTRATOR." 

"RESOLUTION 94227 

CONCERNING CERTAIN'TRAVEL." 

Port Ordinance No, being, "AN ORDINANCE AMENDING SECTION 9 OF 

PORT ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE OF FACILITIES 

AT METROPOLITAN OAKLAND INTERNATIONAL 

ERNATIONAL AIRPORT', and Port Ordinance 

No. being, "AN ORDINANCE AMENDING SECTIONS 1, 10.1 AND 10.12 OF 

PORT ORDINANCE NO, 1149 RELATING TO CHARGES FOR USE OF FACILI1 LES 

AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT', and Port Ordinance 

No. being, "AN ORDINANCE APPROVING AND AUTHORIZING EXECUTION 

OF RIGHT OF WAY CONTRACT FOR SALE TO STATE OF CALIFORNIA OF 

CERTAIN REAL PROPERTY LOCATED NORTHEASTERLY OF BAY BRIDGE 

TOLL PLAZA", and Port Ordinance No. being, "AN ORDINANCE APPROVING 

AND AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE GRANT 

OF EASEMENT TO EAST BAY MUNICIPAL UTILITY DISTRICT', and Port Ordinance 

No. being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 TO 

CREATE ONE NEW POSITION OF AIRPORT PARKING/GROUND 

TRANSPORTATION ADMINISTRATOR", were read a first time and passed to print by 


June 7, 1994 - 19 -


Noes: None 



At the hour of 4:25 p.m., the Board enter into closed session on personnel matters 

as provided for under Government Code Section 54957 and reconvened in open session at 

the hour of 5:45 p.m at which time the formal portion was adjourned on a motion duly 

made and seconded. 

June 7, 1994 

- 20 -




The meeting, foillial portion, was held on Tuesday, June 21, 1994, at the hour of 3:09 







Director of Commercial Real Estate; Director of Human Resources; Director of Maritime; 

Director of Governmental Affairs; Director of Policy and Strategic Planning; Director of 

Equal Opportunity; Director of Public Affairs; Senior Commercial Representative; Chief 

Engineer; Chief of Facilities; Chief of Planning; and Secretary of the Board. 

The minutes of the regular meeting of June 7, 1994; regular meeting of January 18, 

1994; and the regular meeling'of February 1, 1994 were approved as submitted and ordered 

filed. 

Commissioner Vohs, Chair of the Audit & Finance Committee, informed the Board 


Approval to Fund Electronic Data Processing Audit of Airport Parking and Shuttle 

Services was the subject of a memo to the Board from the Director of Aviation notifying the 

Board of the Request for Qualifications from consultants to perform an Electronic Data 

Processing audit of the Airport parking and shuttle services. Three films submitted 

proposals, and it was recommended that the Board authorize the preparation and execution 

of an agreement with KPMG/Peat Markwick to perform audits at a cost of $49,525.00. The 


Acceptance of FAA Grant Offer for AIP-16 was the subject of a memo to the Board 

from the Deputy Executive Director notifying the Board of the previously approved

submittal of an Airport Improvement Program Grant Application (AIP-16) to the Federal 

Aviation Administration for a project to construction an aircraft apron between Taxiway 0 

and Runway 15/33. It has since been determined that it is in the Port's best interest to fund 

the apron project under the Passenger Facility Charges program, and apply this year's AIP 

entitlement funds to a portion of the Earhart Road Improvements project. The total 

estimated cost of the Earhart Road Improvements project is $13,132,000.00. A portion of 

that project is already funded under AIP-12 and AIP-15. The Port share of the project cost 

is funded under Passenger Facility Charges and Port cash. The FAA has now indicated that 

it intends to make to the Port of Oakland a Grant Offer of $1,155,535.00 under AIP-16 

entitlement funds for federal fiscal year 1994. The FAA has provided a draft copy of the 

Offer for AIP-16 and has stated that the terms and conditions are identical to AIP-15, 

accepted by the Board on September 21, 1993. An interim Federal law, signed by the 

President on May 26, permits acceptance of FY 1994 grants only through June 30, 1994. 

It is anticipated that the final offer will be released by the FAA prior to June 30th but 

before the next scheduled Board meeting. The Manager of the FAA's Airports District 

Office has represented to Port staff that it would be acceptable to the FAA if the Board 

were to accept the Offer based upon the draft provided. It was recommended that the 

Board accept the Grant Offer of $1,155,535.00 under AIP-16 when finally released, based 

upon the terms and conditions contained in the draft offer, so that the Port does not lose 

the opportunity to receive the grant. The recommendation was approved on passage of 


Authority to Purchase Rented Radar Component of Airport Noise Monitoring System 


that the Board authorized on September 21, 1993 a rental agreement with an option to 

purchase of the Passive Surveillance Radar component of the airport's noise and operations 

monitoring system. In order to continue uninterrupted use of the system, it was necessary 

to rent this piece of equipment until the purchase of the entire permanent system was 

June 21, 1994 - 2 -

finalized. The contract for the permanent system has now been signed, and the new 

equipment will be installed this summer. It was noted that a new PASSUR unit would cost 

approximately $120,000.00 and the Port is receiving significant credit towards the purchase 

since this equipment has been leased for over three years. It was recommended that the 

Board authorize the purchase option in the existing rental agreement with Bruel & Kjaer 

Instruments to purchase the Passive Surveillance Radar of the Airport's noise and 

operations monitoring system for $52,460.00. The recommendation was approved on 


At the hour of 3:35 p.m., Commissioner Ortiz was excused from the meeting. 

Approval of New License and Concession Agreement with Existing Tenant Anne 

Ouinn and Christopher Quinn dba Mike Quinn Electronics (1080 Langley Street, North 

Airport) was the subject of a memo to the Board from the Director of Aviation 

recommending approval to enter into a new agreement with Anne Quinn and Christopher 

Quinn dba Mike Quinn Electronics for 12,184 square feet of warehouse space and 900 

square feet of paved land in and adjacent to Building L-727, North Airport, at $3,231.64 per 

month, effective June 1, 1994.'The recommendation was approved on passage of Resolution 

No. 94231. 

Approval of Agreement to Extend Right-of-Entry and Indemnity Agreement with Air 

Terminal Services Incorporated and Rudy Lombard, Jointly and Severall y.. Doing Business 

Under the Firm Name and Style of ATS-Lombard Food Services (#1 Airport Drive, South 


recommending approval to extend the Right-of-Entry for approximately 670 square feet of 

construction premises for a new food and beverage facility near Gate 24, Terminal H, 

Building M-130, South Airport. The agreement is effective July 15, 1994 with no rent during 

the construction period. The recommendation was approved on passage of Resolution No. 

94232. 

June 21, 1994 - 3 -

Plans and S r ecifications Construction of Entrance Vestibule at Terminal H 

Building M-130, MOIA was the subject of a memo to the Board from the Deputy Executive 

Director recommending their approval and authority to advertise for bids for the new 

entrance. The scope of work consists of replacing the existing mechanical sliding door 

entrance with a dual sliding door entrance vestibule to alleviate the problem of excessive 

wind draft conditions at the main entrance to Terminal II. The project is categorically 

exempt and does not require the preparation of an environmental document. The 


Acceptance of Federal Aviation Administration (FAA) Amendment No. 1 to Grant 

Agreement AIP-08 was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the Grant Agreement in the amount of $2,331,821.00. All 

projects under the grant are complete, with the actual project costs exceeding the amount 

on which the grant was based. Upon request, the FAA is allowed to reimburse up to 15% 

above the maximum grant amount if there are eligible project cost overruns and 

discretionary money is available. The Port applied for an additional $349,773.15 on March 

26, 1992 and is now being offered that amount under. AIP-08 Grant Amendment No. 1. It 

was recommended that the Board accept the FAA's Amendment No. 1 to Grant Agreement 

AIP-08 for $349,773.15 of discretionary funds. The recommendation was approved on 


Approval of a New License and Concession Agreement with TAESA (#1 Airport 

Drive, South Airport) was the subject of a memo to the Board from the Director of Aviation 

recommending approval of a new agreement covering 213 square feet of ticket counter 

space at $1,293.76 per month, 225 square feet of office space at $1,230.08 per month and 

1,335 square feet of bag make-up space at $5,677.76 per month in Terminal I of the Airport, 

with the total monthly rent at $8,201.60. The space was previously occupied by Morris Air, 

who moved to Terminal II. The recommendation was approved on passage of Resolution 

No. 94235. 

June 21, 1994 

_ 4 _

Recommendation to Approve Right of Entry and Grant of Easement to Pacific Bell 

for Cabinet and Conduit (Ferro Street near Middle Harbor Road) was the subject of a 

memo to the Board from the Director of Commercial Real Estate notifying the Board that 

the Port granted a 66-year easement to Pacific Bell to accommodate APL's request that 

Pacific Bell relocate an existing telephone cabinet currently located at the entrance to APL 

on Ferro Street adjacent to Middle Harbor Road. The easement was recorded in 

December, 1993. Subsequently, the Port designed a project to relocate the queuing lane for 

APL from Middle Harbor Road to Ferro Street. The easement area is in conflict with the 

new road alignment at the entrance to APL. Pacific Bell has identified an alternative 

easement area for the cabinet relocation of the cabinet and associated conduit. Pacific Bell 

has requested that the Port approve a Right of Entry which would allow them to enter onto 

Port property for the construction of the new facilities. After placement is completed, they 

will perform a survey for the "as built" site. The Port will then grant a 66-year easement 

covering the new area, and Pacific Bell will quitclaim the easement which was previously 

granted. It was recommended that the Board approve a Right of Entry to Pacific Bell for 

the installation for a six-month period and authorize execution of the easement and its 

delivery to Pacific Bell subject to receipt of a quitclaim covering the prior easement. The 

recommendation was approved on passage of Resolution No. 94236 and on an ordinance 

passed to print. 

Recommendation to Approve Landlord's Consent to Wells Fargo Bank, National 

Association for Roger S. Ferrari and Susan A. Ferrari, dba Jal-Vue East Bay Glass 

Company was removed from the Board's calendar at the request of the Director of 

Commercial Real Estate. 

Recommendation to Authorize Purchase of Maritime Trade Data Without Calling 

for Competitive Bids was the subject of a memo to the Board from the Director of Maritime 

notifying the Board that the Maritime Division has purchased U.S. Customs import-export 

statistics by ocean carrier and trade lane from the Journal of Commerce since 1982. The 

June 21, 1994 5

statistics provide for the analysis of port market share, ocean carrier market share and 

country by country detail of imports and exports by carrier. The Journal of Commerce is 

the only vendor of this data that provides the level of detail necessary for market share and 

port analysis. The basic subscription rate for the data is approximately $90,000.00 annually 

or $7,500.00 per month. Additionally, the Maritime Division has purchased U.S. 

Department of Census import-export data from TRADE, Inc. since 1989. The U.S. 

Department of Census Statistics provide for the analysis of commodity detail and cargo 

value. Trade, Inc. is the only vendor of the U.S. Department of Census Statistics that offers 

on-line access to the data. The basic subscription rate for this data is approximately 

$25,000.00 annually or $2,100.00 per month. It was recommended that the Board authorize 

the purchase of the services from the Journal of Commerce and Trade, Inc. on a multi-year 

basis subject to annual budget approval. After discussion concerning the costs and the 

potential for sharing the costs, the recommendation was approved on passage of Resolution 

No. 94237. 

Secondary Use Request of American President Lines for Toyofugi Shipping Co., to 

Use APL Terminal was the subject of a memo to the Board from the Director of Maritime 

notifying the Board that Toyofugi Shipping Co., Ltd. is a wholly owned subsidiary of Toyota 

dedicated exclusively to transport vehicles from Japan. In Oakland, Toyofugi conducts 

operations as a secondary user of the American President Liens Terminal where they 

discharge containerized auto parts and load westbound containerized cargoes for Japan. 

Under terms of the Preferential Assignment Agreements with American President Lines 

secondary use revenues from Toyofugi's operations are equally divided between the Port and 

APL. There is an additional provision in the Agreements which allows APL to retain 60 

percent of secondary use charges if it enters into an agreement approved by the Port 

committing the secondary line to a five year term during which the. APL Oakland facility is 

used as the regularly scheduled Northern California port of call. Toyofugi has now 

committed to use the APL Oakland facility as their regularly published Northern California 

June 21, 1994 - 6 -

port of call for a five year period, and it was recommended that the Board approve the 

60/40 percent revenue split as established in the agreement. The recommendation was 


Term Extension for the Terminal Use Agreement with Norsul Internacional. S.A. was 

the subject of a memo to the Board from the Director of Maritime notifying the Board of 

the Terminal Use Agreement for use of the Charles P. Howard Terminal which is operated 

by Stevedoring Services of America. Norsul operates a service in the trade route between 

the U.S. West Coast and l3razil specializing in steel, containerized and general cargo. The 

term of the TUA has been extended several times to where the TUA will now expire June 

30, 1994. The Port and SSA are working together to improve the efficiency of containerized 

cargo operations at the Howard Terminal. These modifications include demolition of the 

transit sheds. Current conditions at the facility, including damage to the existing shed, are 

limiting the opportunity to conduct efficient breakbulk operations and it becomes necessary 

to try and accommodate Norsul's operations at another Port facility. Norsul is reviewing the 

options and has subsequently requested an extension to the existing term of the TUA for 

an additional one month period. It was recommended that the Board approve the one 

month extension for Norsul's agreement. The recommendation was approved on passage 


Award of Contract for Replacement of Double Check Valve Assemblies at Berths 62 

and 63, Middle Harbor Terminal was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the six bids received and recommending award 

of the contract to D.E. Bianchini, Inc., the low bidder, at $62,500.00. The recommendation 


Maintenance Contract for Crane X421, Seventh Street Terminal was the subject of 

a memo to the Board from the Deputy Executive Director notifying the Board that 

PACECO Crane No. 301 is a 25-year old, 30 long ton crane located at Berth 38 in the 

Seventh Street Marine Terminal that is no longer needed by the terminal tenant, Marine 

June 21, 1994 - 7 -

Terminals Corporation. The Board declared the crane surplus at is meeting of September 

8, 1992 and authorized the Executive Director to solicit offers for the crane, which was 

preferentially assigned to MTC until December 17, 1993. Since that time, MTC has been 

exercising the crane to keep it operational. The crane was recently inspected and a list of 

deferred maintenance work prepared. MTC has agreed to take care of the outstanding 

items because MTC is responsible for the work on the deferred maintenance list. As the 

crane is no longer assigned to them, MTC will not be responsible for future maintenance. 

Several prospective buyers of the crane have indicated interest in the crane, and it is 

important to keep the crane fully operational so that it may be marketed as a fully 

operational, ready-to-use crane. If the crane is not properly maintained, deterioration of the 

electrical systems, machinery, and structure will occur, greatly reducing the potential value 

of the crane. MTC has agreed to provide the maintenance work for $1,667.00 per month, 

plus cost of repairs and parts. Repairs and parts are estimated to cost $1,250.00 per month. 

It was recommended that the Board find it to be in the best interest of the Port to dispense 

with formal bids for the maintenance of PACECO Crane No. 301, and authorize a monthly 

purchase order to Marine Terminals Corporation for the work. The recommendation was 


Ratify Extension of Annual Contract for Repairing Port of Oakland Railroad Tracks 

and Crane Rails was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the three-year, annually-renewable contract with Stacy and 

Witbeck, Inc. to repair Port of Oakland railroad tracks and crane rails. The contract 

commenced on May 1, 1991 and was scheduled to terminate on April 30, 1994. However, 

it was extended through July 31, 1994, because the replacement contract with Kleven 

Construction, Inc. did not come into effect until June 7, 1994. In April, the Maritime 

Division requested extensions to the crane rails al Howard Terminal in order to 

accommodate simultaneous loading/unloading of two vessels with the arrival of COSCO 

Lines to that terminal. Stacy and Witbeck was authorized to extend the crane rails 

June 21, 1994

approximately seven feet at either end of Howard Terminal for an estimated cost of 

$70,000.00. The work is scheduled to be completed by July 15, 1994. It was recommended 

that the Board ratify the extension of Stacy and Witbeck's contract from May 1, 1994 

through July 31, 1994 and compensate the contractor for the work as in accordance with the 

terms of the original contract. The recommendation was approved on passage of Resolution 

No. 94242. 

Approval of Consulting Services for Hydrographic Survey Services was the subject 

of a memo to the Board from the Deputy Executive Director notifying the Board that the 

Port contracts with an outside consulting firm to provide all hydrographic (underwater 

survey) services in support of the Marine Terminals Department. The hydrographic 

soundings are required to determine and monitor the available depth of water and the 

siltation rate for all of the Port's deep-water berths. The existing contract for hydrographic 

services will expire at the end of June and proposals were requested to perform the work. 

It was recommended that the Board authorize the preparation and execution of an 

agreement with G. B. Star for providing professional hydrographic services. The firm will 

be compensated for their seNices in accordance with their submitted rate schedule. To 

provide continuity for the Port's hydrographic functions, the proposed contract will include 

a provision allowing the Port to renew the contract in one-year increments through June 30, 

1997. The maximum payment that can be made under the proposed agreement is 

$500,000.00 for the three years, and that up to $60,000.00 of additional work may be 

authorized by the Executive Director. The recommendation was approved on passage of 


Lease with International Maritime Center/Bay Area Seafarers Service was the 

subject of a memo to the Board from the Director of Maritime notifying the Board that the 

International Maritime Center has operated a temporary center for seamen in the new Port 

View Park at Berth 40, Seventh Street, under a License and Concession Agreement since 

June, 1992. IMC is managed by the Bay Area Seafarers Service, an Episcopal charitable 

June 21, 1994 

- 9 -

agency. The IMC replaced the old Apostleship of the Sea which was demolished to allow 

for construction of the TraPac Terminal at Berth 30. In view of the nature of the public 

service the IMC provides the maritime community, the Port agreed to contribute two older 

Port-owned prefabricated buildings containing 1,840 square feet of floor space set on a new 

foundation including utility connections and other infrastructure improvements at the Berth 

40 permanent site. With IMC's relocation into their permanent site, it was recommended 

that the Board authorize a five year Lease Agreement at a minimum rent of $1.00 per year. 


Personnel Items contained in a memo to the l3oard from the Director of Human 

Resources recommended the reversions of Port employees resulting from City of Oakland's 

reduction in force program, appointments resulting from City of Oakland's Reduction in 

Force program and terminations resulting from the City of Oakland's Reduction in Force 

program. 

Ms. Vannesa Brooks, Senior Account Clerk, and on the list for reversions appeared 

before the Board on behalf of herself and four other employees scheduled for reversion in 

classifications. She noted that at the time of her appointment to the higher classification 

she was promised that the new position would not be subject to reversion. She further 

noted that she bad no direction as to where she would be going or who would replace her. 

She also noted that the City employees who would be "bumping" have not exercised their 

option to come to the Port. 

After discussion, President Lockhart, asked for the item to be held over until a 

clearer view of the situation could be obtained. 

Also recommended was the appointment of the following college interns: David 

Neary, at the Engineering Construction Department; Alahn Smith, at the Land Records 

Management Unit; and Da many Brown, at the Engineering Project Planning, all effective 

June 27, 1994, at $8.26 per hour. The recommendation was approved on passage of 

Resolution No. 94244 for appointments. 

June 21, 1994 

- 10 -

Annual Operating Budget for Fiscal Year Ending June 30, 1995 was the subject of 

a memo to the Board from the Director of Finance notifying the Board of the previous 

presentation of the budget to the Board and the expected revenues and expenses. At the 

request of President Lockhart, the item was held over to the July 12, 1994 meeting with the 

Board to review the budget on Wednesday, June 29, 1994. To provide for funds to pay 

expenses in July, the Board passed Resolution No. 94248 providing for interim 

appropriations. 

Approval of the Capital Contract Award Program for Fiscal Year Ending June 30, 

1995 was the subject of a memo to the Board from the Director of Finance notifying the 

Board of the proposed Capital Contract Award Program for fiscal year 1994-95 and the 

projected contract awards for fiscal year 1995-96 through fiscal year 96-97 are $91 million, 

and a total three-year Capital Improvement Program of $265 million. President Lockhart 

also asked for the item to be reviewed at the meeting on June 29, 1994. 

Approval to Contract with a Consultant for Deferred Compensation Plan RFP 

Services was the subject of a memo to the Board from the Director of Finance notifying the 

Board of the existing contract with Great Western Bank to administer the Port's Deferred 

Compensation Program. The Port currently holds approximately $15,000,000.00 in the 

Deferred Compensation Plan. The Port has had Great Western as the Plan administrator 

since 1985, with the most recent contract entered into in 1990. The contract with Great 

Western expires on June 30, 1995 and the Deferred Compensation Committee has 

determined it is in the best interest of the Port to request proposals from firms qualified to 

administer the Plan. Due to the specialized knowledge required in this field, contract 

negotiation complexities and time constraints the committee is recommending contracting 

with an expert in the field of employee benefits programs to assist in this process. It was 

recommended that the Board authorize an agreement with the William M. Mercer Inc. to 

provide assistance to the Port's Deferred Compensation Committee in recommending a plan 

administrator. The firm would conduct planning meeting(s) to assess the Port's needs, 

June 21, 1994 

- 11 -

prepare a draft RFP and distribution list, review vendor responses and assist the Committee 

in the evaluation and selection of finalists, interview finalists, and assist the Port Attorney 

in contract negotiations and finalization of contract terms with selected plan 

administrator(s). The recommendation was approved on passage of Resolution No. 94245. 

Approval to Dispense with Formal Bids to Furnish Pile Wraps was the subject of a 

memo to the Board from the Deputy Executive Director notifying the Board that the Port 

has seven maritime berths and the Airport approach lights structure built between 1929 and 

1960, all supported on approximately 4,000 wood piles. To protect the piles from infestation 

by waterborne microbes, portions of the piles within the tidal zone are wrapped with heavy- 

duty polyvinyl chloride wrap. Recent inspections revealed that some of the wrappings have 

been damaged and must be replaced to prevent further damage tot he exposed piles. There 

are only two vendors who have been able to supply the wrap material which met the Port's 

specifications. It was recommended that the Board find and determine that it is in the best 

interest of the Port to dispense with formal bidding procedures and authorize the purchase 

of pile wrap material at a price not to exceed $30,000.00. The recommendation was 



the Board recommending approval for the travel of Commissioner John Loh, the Executive 

Director, Director of Maritime and Director of Public Affairs to Tokyo and Yokohama, 

Japan to attend the VII Pan Pacific Conference and to call on shipping lines on or about 

the period July 1 - 14, 1994, with the continued travel of the Executive Director and 

Director of Maritime to Seoul, Korea to call on shipping lines. Also recommended was the 

travel of Commissioner Celso D. Ortiz and the Secretary of the Board to Pipi, Guam to 

attend the 81st Annual Conference of the Pacific Coast Association of Port Authorities on 

or about the period July 14 - 22, 1994. The recommendation was approved on passage of 


June 21, 1994 

- 12 -

vote: 



Noes: None 

Absent: None 


Ortiz, Vohs and President Lockhart - 7 

FINDING AND DE'T'ERMINING THAT A PROPOSED AGREEMENT WITH 

KPMG PEAT MARWICK FOR AUDIT SERVICES FOR THE METROPOLITAN 

OAKLAND IN' I 'ERNATIONAL AIRPORT CONSITTU'IES PROFESSIONAL OR 


AGREEMENT." 


vote: 

ACCEPTING GRANT OFFER OF THE UNITED STATES ES OF AMERICA AND 

AUTHORIZING EXECUTION OF GRANT AGREEMENT WITH FEDERAL 

AVIATION ADMINISTRATION UNDER PROJECT NO. 3-06-0170-16." 



Noes: None 




AUTHORIZING THE EXECUTIVE DIRECTOR TO PURCHASE RENTED 

RADAR COMPONENT OF AIRPORT NOISE MONITORING SYSTEM NOW 

IN PLACE AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT." 



AND CONCESSION AGREEMENT WITH ANNE QUINN AND CHRISTOPHER 

QUINN, A GENERAL PARTNERSHIP, DOING BUSINESS AS MIKE QUINN 

ELECTRONICS." 

June 21, 1994 

- 13 -



TO EXTEND RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT 

("EXTENSION AGREEMENT') WITH AIR IERMINAL SERVICES 

INCORPORNIED, A VIRGINIA CORPORATION, AND RUDY LOMBARD, 

JOINTLY AND SERVERALLY, DOING BUSINESS UNDER THE FIRM NAME 

AND STYLE OF .ATS-LOMBARD FOOD SERVICES." 


APPROVING PLANS AND SPECIFICATIONS FOR CONSTRUC11ON OF 

ENTRANCE VESTIBULE AT TERMINAL II, BUILDING M-130, 




ACCEPTING AMENDMENT NO. 1 TO GRANT OFFER OF THE UNITED 

STAFFS OF AMERICA AND AUTHORIZING EXECUTION OF AMENDMENT 

NO. 1 TO GRANT AGREEMENT WITH THE FEDERAL AVIATION 

ADMINISTRATION UNDER PROJECT NO. 3-06-0170-08, CONTRACT NO. 

D I A08-88-C-30313." 



AND CONCESSION AGREEMENT WITH TRANSPORIES AEREOS 

EJECUTIVOS, S.A. de C.V. ("TAESA")." 


APPROVING AND AUTHORIZING EXECUTION OF RIGHT-OF-ENTRY AND 

INDEMNITY AGREEMENT ("ROE AGREEMENT') WITH PACIFIC BELL." 


FINDING AND DETERMINING THAT IT IS IN THE BEST IN 1 EREST OF 

THE PORT TO DISPENSE WITH COMPETITIVE BIDS FOR THE PURCHASE 

OF MARITIME TRADE DATA." 


CONSENTING TO DESIGNATION OF SECONDARY USE BY AMERICAN 

PRESIDENT LINES, LTD. TO TOYOFUJI SHIPPING CO., LTD. AND 

APPROVING AMERICAN PRESIDENT LINES, LTD. USE AGREEMENT 

WITH TOYOFUJI SHIPPING CO., LTD." 


AUTHORIZING EXECUTION OF EIGHTH SUPPLEMENTAL AGREEMENT 

WITH NORSUL INTERNACIONAL S.A." 

June 21, 1994 

- 14 -


AWARDING CONTRACT TO D. E. BIANCHINI INC. FOR REPLACEMENT OF 

DOUBLE CHECK VALVE ASSEMBLIES AT BERTHS 62 AND 63, MIDDI E 

HARBOR TERMINAL, OAKLAND, CALIFORNIA; FIXING THE AMOUNT OF 



BIDDERS." 


• FINDING AND DE IERMINING THAT IT IS IN THE BEST INTEREST OF 

THE PORT To DISPENSE WITH COMPETITIVE BIDS FOR THE 

MAINTENANCE OF CRANE NO. 301 (X421) AT SEVENTH STREET 

TERMINAL, OAKLAND, CALIFORNIA, AND AUTHORIZING 

ACCOMPLISHMENT OF THE WORK BY NEGOTIATED CONTRACT." 


RATIFYING EXTENSION OF ANNUAL CONTRACT FOR REPAIRING PORT 

OF OAKLAND RAILROAD TRACKS AND CRANE RAILS." 



G.B. STAR FOR MARITIME CONSULTING SERVICES CONSTITUTES 

PROFESSIONAL OR SPECIALIZED SERVICES AND WAIVING 

COMPETITIVE BIDDING; AND AUTHORIZING EXECUTION OF SAID 

AGREEMENT." 





WILLIAM M. MERCER FOR CONSULTING SERVICES CONS11TU I ES 



AGREEMENT." 


FINDING AND DE I ERMINING THAT IT IS IN THE BEST IN I EREST OF 

THE PORT TO CONTRACT FOR PROCUREMENT OF PVC WRAP 

MAI ERIAL FOR PROTECTION OF PORT PILES WITHOUT COMPETITIVE 

BIDDING, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER 

INTO A CONTRACT FOR SUCH MATERIALS BASED ON RECEIPT OF 

INFORMAL PROPOSALS." 


June 21, 1994 


- 15 -


MAKING APPROPRIATIONS OF CERTAIN MONEYS TO PROVIDE FOR 

CERTAIN INTERIM EXPENDITURES PROPOSED TO BE MADE FOR THE 

FISCAL YEAR 1994-1995." 

Port Ordinance No. 3213 being, "AN ORDINANCE AMENDING SECTION 9 OF 


AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT', and Port Ordinance 

No. 3214 being, "AN ORDINANCE AMENDING SECTIONS 1, 10.1 AND 10.12 OF 


AT METROPOLITAN 

ROPOLITAN OAKLAND INTERNATIONAL 

ERNATIONAL AIRPORT', and Port Ordinance 

No. 3215 being, "AN ORDINANCE APPROVING AND AUTHORIZING EXECUTION 

OF RIGHT OF WAY CON TRACT FOR SALE TO STATE OF CALIFORNIA OF 

CERTAIN REAL PROPERTY LOCATED ED NORTHEASTERLY OF BAY BRIDGE 

TOLL PLAZA", and Port Ordinance No. 3216 being, "AN ORDINANCE APPROVING 

AND AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE GRANT 

OF EASEMENT TO EAST BAY MUNICIPAL UTILITY DIS I RICT', and Port Ordinance 

No. 3217 being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 TO 

CREATE ONE NEW POSITION OF AIRPORT PARKING/GROUND 

TRANSPORTATION ADMINISTRATOR", were read a second time and passed by the 



Noes: None 




AUTHORIZING THE GRANT OF EASEMENT TO PACIFIC BELL", and Port 

Ordinance No. being, "AN ORDINANCE APPROVING AND AUTHORIZING THE 

EXECUTION OF A LEASE WITH INTERNATIONAL MARITIME CENIER/BAY 

June 21, 1994 

- 16 -

AREA SEAFARERS SERVICE, DIREC IING RECORDATION THEREOF AND 

MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNEC I ION 

THEREWITH", were read a first time and passed to print by the following 

vote: 


Noes: None 



At the hour of 4:15 p.m. the Board entered into closed session for the purpose of 

discussing Labor Negotiations as pursuant to Government Code Section 54957.6; and for a 

Conference with Legal Counsel concerning existing litigation pursuant to subdivision (a) of 

Government Code Section 54956.9, Port of Oakland, v. Burns & Roe Enterprises, Inc., 

Burns & Roe Securacom, Inc., Securacom, Inc., Special Situation Investment Holding, Ltd., 

SMF Systems Corporation, Alameda Cty. Sup. Ct., No. Div., No. 727312-2, Port Case No. 

93-30-C (CJS). 

At the hour of 5:55 p.rtI the meeting was reconvened in open session with Resolution 

No. 94248 introduced and passed providing for appropriations for interim expenses for the 

month of July, 1994. 

At the hour of 5:58 p.m. the meeting was adjourned to Wednesday, June 29, 1994 at 

the hour of 3:00 p.m. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The meeting was reconvened on Wednesday, June 29, at the hour of 3:15 p.m. in the 

office of the Board, second floor, 530 Water Street, Oakland, California, President Lockhart 

presiding appropriate notice having been given and posted. 

Commissioners present: Broussard, Loh, Ortiz, Vohs and 


Commissioners absent: Cole and Kramer - 2 

June 21, 1994 - 17 -

Also present were the Executive Director; Deputy Executive Director; Port Attorney, 

Director of Maritime; Director of Aviation; Director of Human Resources; Director of 

Commercial Real Estate; Director of Finance; Director of Policy and Strategic Planning; 

Chief Engineer; Chief of Facilities; Director of Public Affairs; Media Relations Officer; 

Director of Equal Opportunity; and Secretary of the Board. 

The Board reviewed the proposed Port's Operating Budget for 1994-95 and the 1995- 

96 year. After considerable discussion, President Lockhart suggested that the staff prepare 

a budget which would provide for a 2% return on Operating Revenues, expected to be 

approximately $2.5 million, revenue over expenses, based on an Operating Revenue 

Projection of $126,303 million. Commissioner Broussard made the appropriate motion 

which was seconded by Commissioner Vohs and passed unanimously with the Board to 

review the budget on Monday, July 18, 1994. 

At the hour of 4:35 p.m. the Board entered into closed session as posted for a 

conference on labor negotiations pursuant to Government Code Section 54957.6 and 

reconvened in open session at the hour of 5:00 p.m. at which time the meeting was 

adjourned on a motion duly Made and seconded. 

It was noted that the next meeting of the Board would be an adjourned regular 

meeting to be held on Tuesday, July 12, 1994. 

June 21, 1994 - 18 - 





The regular meeting of July 5, 1994 was adjourned by the Secretary of the Board to 

Tuesday, July 12, 1994 at the hour of 3:00 p.m., due to the absence of the all the members 


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The meeting was reconvened on July 12, 1994, at the hour of 3:20 p.m., in the office 

of the Board, second floor, 530 Water Street, Oakland, California, President Lockhart 

presiding, appropriate notice having been given and posted. 




Also present were the Deputy Executive Director; Director of Aviation; Director of 

Finance; Port Attorney; Director of Commercial Real Estate; Director of Equal 

Opportunity; Director of Public Affairs; General Manager, Marine Terminals; Chief 

Engineer; Chief of Facilities; Chief of Planning; and Secretary of the Board. 

The minutes of the regular meeting of June 21, 1994; adjourned regular meeting of 

June 29, 1994; and the regular meeting of February 15, 1994 were approved as submitted 


Commissioner Broussard, Chair of Aviation Committee, informed the Board that the 


Commissioner Ortiz, Chair of Commercial Real Estate Committee, informed the 


Commissioner Kramer, Chair of Human Resources Committee, informed the Board 



committee had met and reviewed their current agenda.

Approval to Dispense with Formal Bids for Overlay of Airport Drive Inbound Lanes 

Phase II, and Construction of Right Turn Lane Airport Drive to Neil Armstrong Way, South 

Airport, MOIA was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board of the improvements that are needed to the inbound lanes to Airport 

Drive. The next phase of the work was scheduled to go to construction between August and 

October of this year and includes overlaying existing asphalt concrete pavement; constructing 

concrete curbs and gutters; constructing new asphalt concrete pavement; modifying existing 

irrigation and storm drain systems; relocating existing light poles; striping and installing 

traffic signs. The work is both weather and time sensitive and it is extremely desirous to 

have the work completed in the dry weather and before the Thanksgiving holiday. In order 

to accomplish the work before inclement weather or the holiday season, it was 

recommended that the Board find it to be in the best interests of the Port to dispense with 

formal bidding procedures and accomplish the work based on the receipt of informal 

quotations. The estimated cost of the work is $350,000.00. The recommendation was 


Renewal of License and Concession Agreements at Oakland International Airport 

(#1 Airport Drive, South Airport) was the subject of a memo to the Board from the 

Director of Aviation notifying the Board of the annual review of existing License and 

Concession Agreements for Airport tenants and recommending approval to negotiate the 

proposed target rents in accordance with instructions to negotiators to be discussed in closed 

session. The recommendation was approved on passage of Resolution No. 94250. 

Approval of New License and Concession Agreement with Rich International Airways 

(#1 Airport Drive, South Airport) was the subject of a memo to the Board from the 

Director of Aviation recommending approval of a new agreement with Rich International 

Airways for 403 square feet of ticket counter, 722 square feet of office and 1,887 square feet 

of bag make-up space in Building M-101, at $125.00/each for two-hour use, effective May 

3, 1994. The recommendation was approved on passage of Resolution No. 94251. 

July 12, 1994 

- 2 -

Consulting Agreement with Keiser & Associates, Inc. for Air Cargo Marketing 

Assistance was the subject of a memo to the Board from the Director of Aviation 

recommending approval to enter a consulting agreement with Keiser & Associates to 

perform air cargo marketing services at an annual cost of $45,000.00. Key duties will 

include: continue ongoing Airport marketing efforts with domestic and international air 

cargo carriers, forwarders, express package carriers, shippers, U.S. Postal Service and other 

governmental agencies to increase air cargo activity at Oakland International Airport; 

provide recommendations with regard to air cargo facility requirements for both the short- 

term and long-term; and provide evaluations of emerging trends in the air cargo industry 

as they affect the Port's air cargo marketing strategy, facility development plans, and 

revenue generation opportunities. The recommendation was approved on passage of 


Recommended Approval to Dispense with Public Bids for Demolition. Construction 

and Architectural Services for the Required Renovations to the 2nd Floor of Port Building 

F-107 was the subject of a memo to the Board from the Director of Commercial Real Estate 

notifying the Board that Port Building F-107 (former Port Administrative offices), located 

at 66 Jack London Square, contains approximately 71,000 rentable square feet of office 

space on the 2nd and 3rd floors. The 3rd floor is occupied by the Alameda Newspaper 

Group. The entire 2nd floor (30,500 rentable square feet) is currently vacant and available 

for lease. Recently there has been significant interest in leasing the 2nd floor from potential 

office users. Most potential users require a turn around time from date of lease execution 

to occupancy of approximately 12 weeks. The Port's ability to respond in a timely manner 

will be critical to closing potential lease deals. Due to the tight time frame required to 

provide space planning, construction drawings, and build-out of tenant and common area 

spaces, it was recommended that the Board find it is in the best interest of the Port to 

dispense with the formal competitive bidding procedures for the construction contracts up 

to a total of $955,000.00. It was also recommended that the Board authorize the Executive 

July 12, 1994 3

Director to negotiate and execute all contracts for construction services, and architectural 

services with Robinson, Mills + Williams for a total not to exceed $60,000.00 for 

improvements to the building. The recommendation was approved on passage of Resolution 

No. 94253. 

Recommendation to Approve Landlord's Consent to Wells Fargo Bank, National 

Association for Roger S. Ferrari and Susan A. Ferrari, dba Jal-Vue East Bay Glass 

Company was the subject of a memo to the Board from the Director of Commercial Real 

Estate notifying the Board of a agreement with Roger S. Ferrari and Susan A. Ferrari, dba 

Jal-Vue East Bay Glass Company for space on 6th Avenue. Mr. and Ms. Ferrari, as 

borrowers, have an approved small business loan from Wells Fargo Bank, National 

Association (the "Bank") and the Bank, as lender, requires that a Landlord's Consent be 

entered into amount the Port, the Bank, Mr. Ferrari and Ms. Ferrari and placed in escrow 

prior to funding. Basically the consent recognizes the ]Bank's security interest in personal 

property pledged as collateral; grants entry to the premises to the Bank only for the purpose 

of removing collateral; the. Bank agrees to repair or reimburse the Port for any and all 

damage to the premises as a result of the Bank's entry unto the premises for removal of 

collateral; the Bank agrees to not hold public auctions on or about the premises; and the 

Bank agrees to indemnify the Port for all damages, costs, etc. arising out of the Bank's entry 

onto the premises for purposes of removing the collateral. It was recommended that the 

Board approve to Landlord's Consent. The recommendation was approved on passage of 


Authorize Consultant Services Agreement for Joint Intermodal Terminal was the 


Memorandum of Understanding (MOU) with the Southern Pacific Transportation Company 

and the Union Pacific Railroad for the development of a proposed Joint Intermodal 

Terminal in Oakland. One of the steps described in the MOU is the retention of a 

consultant to assist with the development of the operating plan for the Joint Intermodal 

July 12, 1994 

-4-

Terminal. The Port requested proposals and interviewed six consultants who responded to 

the RFP. The California Department of Transportation (CALTRANS) and the Port have 

previously executed an agreement through which CALTRANS will reimburse the Port for 

80% of all expenditures under this agreement. Based on selection committee review, it was 

recommended that the Board authorize the execution of an agreement with Summit/Lynch 

Consulting Engineers to develop an operational plan for the Joint Intermodal Terminal. 

The firm will be compensated up to $225,000.00 with certain additional work available at 

the discretion of the Executive Director. The recommendation was approved on passage 


Renewal and Reduction of Inchcape New York Contract was the subject of a memo 

to the Board from the Director of Maritime notifying the Board that the Port has a contract 

with Inchcape Shipping to represent the Port of Oakland on a full time basis in the New 

York/New Jersey area at an all-inclusive monthly compensation rate of $10,000.00 through 

August 31, 1994. After a reassessment of the Port's needs at this time, it is felt that the 

Port's goals can be met with a part-time agency contract. Inchcape Services has agreed to 

provide Port of Oakland representation in the New York/New Jersey area on a part-time 

basis at $5,500.00 per month all-inclusive. In order to transition their employee to a part- 

time basis for the Port of Oakland account, it was recommended that the Board approve a 

contract based on compensation at the current level of $10,000.00 per month all inclusive 

through December 31, 1994; and effective January 1, 1995 compensation be reduced to 

$5,500.00 per month all-inclusive through December 31, 1995. The recommendation was 


Award of Contract, Construction of Queuing Lanes along Ferro Street, Middle 

Harbor Terminal was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board of the three bids received and recommending award of the 

contract to O.C. Jones and Sons (Berkeley), the low bidder at $125,899.00. The 


July 12, 1994 

5

Authorization to Execute an Agreement with PG&E for Relocation of Electric Service 

at Caltrans Yard was the subject of a memo to the Board from the Deputy Executive 

Director notifying the Board that the State Department of Transportation (Caltrans) will 

construct, as part of the 1-880 Cypress replacement project, an off-ramp on Port property, 

the Caltrans Yard, located between the Bay Bridge Toll Plaza and Burma Road adjacent 

to the Oakland Army Base. The Port has agreed to accommodate the project by leasing a 

construction area easement and a permanent aerial easement to Caltrans. Located within 

the permanent aerial easement area is a Port tenant trailer office, an electrical substation, 

and other utility services. An existing PG&E electric service which serves the entire 

Caltrans Yard is adjacent to the Port's electrical substation. To accommodate Caltrans work 

in this area, the facilities, including PG&E's electric service, must be relocated. It was 

recommended that the Board authorize an agreement with PG&E for the relocation of the 

electrical service at Caltrans Yard at a cost of $21,645.00. All utility relocation costs in 

connection with this project including relocation of this electric service will be reimbursed 

by Caltrans. The recommendation was approved on passage of Resolution No. 94258. 


Resources recommended appointment of Frederick R. Ferrin, as Director of Engineering, 

effective August 29, 1994, at $8,750.00 per month; and the following Port of Oakland 

Mayor's Summer Job Program Interns are Brenaia Blue, Shanise Boyd, Srilanka Colbert, 

Kandace Harris, Courtney Nash, Jamaudra Shepherd, Tahira Warner and Karen Woo. Also 

recommended was the creation of one Port-unique exempt classification of "Director of Port 

Communications" and the corresponding salary grade assignment of Salary Grade 16. 

Further recommended was a leave of absence for Sabrina Del Favero through and including 

July 4, 1994, 23 working days, for medical reasons. The recommendations were approved 

on passage of Resolution No. 94259 for appointments; Resolution No. 94260 for leave of 

absence; and on an ordinance to print for creation of new position. 

July 12, 1994

Revising the Financial Advisor Contract and Relationship and Awarding the 

Contract Solely to Fullerton & Friar, Inc, was the subject of a memo to the Board from the 

Director of Finance notifying the Board that the Board previously approved the appointment 

of Fullerton & Friar, Inc., and LS Financial Group, Inc., as co-financial advisors to the Port. 

As the primary financial advisor, Fullerton & Friar was to receive 70% of the fees and was 

to retain out of their fees, the maritime subcontractor, Mercer Management Consulting, Inc. 

LS Financial, as the secondary financial advisor, was to receive 30% of the fees. The 

contracts were for two years, with two one-year options, on an annual combined retainer not 

to exceed $100,000.00 per year, and out-of-pocket expenses limited to $20,000.00 per firm 

for general financial advisory work. In addition, the firms were to split any transactional 

fees not to exceed $1.10 per $1,000.00 of bonds with 60% to Fullerton & Friar and 40% to 

LS Financial. LS Financial Group, Inc., has now decided to discontinue financial advisory 

work and is in discussion with an underwriting firm regarding a merger. LS Financial 

Group, Inc., has requested that they no longer be considered for the Port's financial advisor 

contract. It was recommended that the Board award the full contract to Fullerton & Friar, 

Inc., as sole financial advisor for a period of two years with two one-year options to be 

reapproved by the Board. It is also recommended that the Port reimburse LS Financial 

Group, Inc., for the out-of-pocket expenses the firm has incurred since March 15, 1994, 

based on written invoices submitted by LS Financial and reviewed and approved by the 

Director of Finance. The revised fee structure will be as follows: retainer fee not to exceed 

$200,000.00 during the two-year period (Fullerton & Friar will pay Mercer's consulting fees 

from this amount), out-of-pocket expenses limited to $30,000.00 per year, and transactional 

fees, if any, not to exceed $1.00 per $1,000.00 of bonds issued. For the two-year period, 

Fullerton & Friar will devote approximately 85-100 working days to the Port. The 


Authorization to Negotiate an Annual Contract for Removal and Disposal of 

Hazardous Waste, Designated Waste, and Other Contaminated Materials was the subject 

July 12, 1994 

7

of- a memo to the Board from the Deputy Executive Director notifying the Board that one 

bid was received and that bid was invalid because of an insufficient bid security. Due to the 

high cost of bid securities for the work, it was recommended that the Board authorize 

execution of a contract for the work based upon the receipt of informal quotations. To 

provide for needed services in the interim, it was also recommended that the previous 

annual contractor, DECON Environmental Services, be authorized to provide services 

beyond June 30, 1994, until such time as a new contract is executed. The recommendation 


Waiving Competitive Bidding for the Human Resources Information System Project 

for the Acquisition of Software and Services was the subject of a memo to the Board from 

the Director of Finance notifying the Board that previously the Board approved $210,000.00 

for acquisition of software and services to replace the Port's current human resources and 

payroll preparation software. The Board approved committing the first $60,000.00 of the 

$210,000.00 to retain a consultant, Taylor Consulting, to perform a study of the Port's 

requirements related to the project. The consultant and members of a Port-wide Project 

Team have interviewed more than 50 Port employees from Executive staff to field 

supervisors and timekeepers. A Request for Proposal has been prepared and ready to 

distribute to software companies inviting them to submit proposals for the procurement and 

implementation of a new HRIS. It was recommended that the Board find and determine 

that the acquisition of software and services to implement a new Human Resource 

Information System is professional and it is in the best interest of the Port to secure the 

services without competitive bidding. The recommendation was approved on passage of 


Approval to Hire Clayton Environmental Consultants to Provide Professional 

Environmental Consulting Services was the subject of a memo to the Board from the 

Deputy Executive Director notifying the Board that the Port often requires professional 

consultants to perform or assist with environmental laws and regulations and currently has 

July 12, 1994 

8

two environmental firms under contract to provide these services as needed. The contracts 

will expire after two years or when the maximum compensation limit of $500,000.00 is 

reached. It is now clear that both contracts will expire sometime in the second quarter of 

the fiscal year by reason of reaching the maximum compensation limit. It was recommended 

that the Board authorize the preparation and execution of an agreement with Clayton 

Environmental Consultants to assist the Port in environmental matters. It was noted that 

two firms are retained to provide for greater flexibility of services. The recommendation 


Approval to Hire Alisto Engineering Group to Provide Professional Environmental 

Consulting Services was the subject of a memo to the Board from the Deputy Executive 

Director recommending approval to prepare and execute an agreement with Alisto 

Engineering Group for the environmental services to compliment the retention of Clayton 

Environmental Consultants. The recommendation was approved on passage of Resolution 

No. 94265. 

Revocation of PERS Option was the subject of a memo to the Board from the 

Director of Human Resources notifying the Board that since 1984, Port employees have 

had the option to convert the Port's payment of the PERS 7% employee contribution to 

base salary, in contemplation of retirement, on the condition that the employee pay the 

PERS employee contribution during the period of exercise of the "PERS option." In recent 

years, the PERS administration has become increasingly concerned that pension 

enhancement procedures, such as the Port's PERS option, are not fully funded from an 

actuarial standpoint. As a result, PERS sponsored Senate Bill 53 which was enacted in the 

last state legislative session and became effective July 1, 1994. Senate Bill 53 provides that 

the 7% add on provided by the PERS option will no longer be considered as part of basic 

compensation for PERS benefit purposes, unless the contracting agency employer amends 

the PERS contract to provide for this option and pays additional employer contributions to 

fund the contract option. The City of Oakland is the contracting agency and this option 

July 12, 1994 - 9 -

could only become operative if the City agrees to it. The Port has contacted the City to 

ascertain their intentions in this regard and has been advised that the matter is under 

consideration but will not be effective until sometime well after July 1, 1994. For those Port 

employees who have exercised the option and are receiving the additional 7% as base pay, 

PERS regulations require that the Port cease reporting the 7% as PERS compensation. 

Under the existing Port ordinance the PERS option, once exercised, is irrevocable. Since 

some employees, who previously exercised the option and are receiving the 7% salary add 

on in lieu of PERS employee contributions, may want to terminate the option, it was 

recommended that the ordinance be amended to allow such revocation on a non-mandatory 

basis. The recommendation was approved on passage of an ordinance to print. 

Joint Entity Disparity Study was the subject of a letter to the Board from the Port 

Attorney notifying the Board that the Oakland City Council's Economic Development, 

Community Development and Housing approved for advancing to the Council a report and 

recommendation from the City Attorney to retain Mason-Tillman to conduct a 

comprehensive (CROSON) Disparity Study for the City, the Redevelopment Agency and 

the Port for the sum of $220,000.00. The Port's share is to be $70,000.00, slightly less than 

the $75,000.00 (City) and $75,000.00 (Redevelopment) allocations. The Consultant's review 

of the Port's programs will be limited to construction/public works hence the difference 

between the other two agencies' shares and the Port's. The "Disparity Study" is proposed 

as defensive materials to respond to any contractor's challenge of the Port's 

DBE/MBE/WBE programs based on the U.S. Supreme Court's decision in City of 

Richmond v. Croson (1989) [488 U.S. 469]. The study will also provide a basis for 

preserving and enhancing our existing Equal Opportunity Programs. It was recommended 

that the Board authorize the Port Attorney to negotiate and execute an agreement for the 

study with Mason Tillman for the Port's share of $70,000.00. The recommendation was 


July 12, 1994 

- 10 -

As provided for the Port's Bylaws, President Lockhart called for the annual election 

of officers. Commissioners Broussard nominated Commissioner Lockhart as President, 

Commissioner Vohs nominated Commissioner Broussard as First Vice President, and 

Commissioner Broussard nominated Commissioner Kramer as Second Vice President. 

There was no further nominations and the slate was elected on seven affirmative votes. 

Resolution No. 94269 declaring election of officers - James B. Lockhart, President; Allen 

E. Broussard, First Vice President; David Kramer, Second Vice President was passed and 

included Christopher C. Marshall as Secretary of the Board, Sharon L. Krippene and 

Jasmine J. Lim as Assistant Secretary of the Board. 

vote: 



Noes: None 

Absent: None 



APPROVING DISPENSING WITH FORMAL BIDS FOR OVERLAY OF 

AIRPORT DRIVE INBOUND LANES PHASE II, AND CONSTRUCHON OF 

RIGHT TURN LANE AIRPORT DRIVE TO NEIL ARMSTRONG WAY, 

SOUTH FIELD, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 

OAKLAND, CALIFORNIA AND AUTHORIZING THE PERFORMANCE 

THEREOF." 


INS IRUL PING PORT STAFF REGARDING RA1ES AND'PERMS TO BE 

NEGOTIATED WITH EXISTING LICENSES OF CERTAIN PORT 

PROPERTIES." 



AND CONCESSION AGREEMENT WITH RICH INTERNATIONAL 

AIRWAYS." 

July 12, 1994 - 11 -


FINDING AND DETERMINING THAT A PROPOSED SIXTH 

SUPPLEMENTAL AGREEMENT WITH KEISER & ASSOCIK1 ES, INC., FOR 

AVIATION CONSULTING SERVICES CONSTITUIES PROFESSIONAL OR 


SIXTH SUPPLEMENTAL AGREEMENT." 



THE PORT TO CONTRACT FOR DEMOLITION, CONSTRUCTION AND 

ARCHITECTURAL SERVICES FOR RENOVATION OF THE SECOND FLOOR 

OF PORT BUILDING F-107 WITHOUT COMPETITIVE BIDDING AND 

AUTHORIZING THE EXECUTIVE DIRECTOR TO CONTRACT WITH 

ROBINSON MILLS + WILLIAMS FOR ARCHrIECTURAL AND SPACE 

PLANNING SERVICES AND IN THE OPEN MARKET FOR THE 

REMAINDER OF SUCH WORK." 



LANDLORD'S CONSENT WITH ROGER S. FERRARI AND SUSAN A. 

FERRARI, DOING BUSINESS AS FERRARI CONSTRUCTION AND WELLS 

FARGO BANK, NATIONAL CORPORATION." 


FINDING AND DE'T'ERMINING THAT A PROPOSED AGREEMENT WITH 

SUMMIT/LYNCH CONSULTING ENGINEERS FOR MARITIME 






AGREEMENT WITH INCHCAPE SHIPPING SERVICES, FOR 

REPRESENTATION SERVICES CONSTITUTES PROFESSIONAL OR 


FIRST SUPPLEMENTAL AGREEMENT." 


July 12, 1994 

AWARDING CONTRACT TO O.C. JONES AND SONS, FOR CONS IRUC.110N 

OF QUEUING LANES ALONG FERRO STREET, MIDDLE HARBOR 


TO BE PROVIDED IN CONNECHON THEREWITH; REJECTING ALL 

OTHER BIDS; AND DIRECTING RETURN OF BID BONDS TO BIDDERS." 

- 12 -


AUTHORIZING EXECUTION OF AN AGREEMENT WITH PACIFIC GAS & 

ELECTRICAL COMPANY ("PG&E") FOR THE RELOCATION OF 

ELECTRICAL SERVICE AT CALTRANS YARD." 





FAVERO." 


AWARDING THE FINANCIAL ADVISOR CONTRACT TO FULLERTON & 

FRIAR INC. AND REIMBURSEMENT OF OUT OF POCKET COSTS TO LS 

FINANCIAL GROUP, INC." 


APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO (1) 

EXECUTE A FIRST SUPPLEMENTAL AGREEMENT WITH DECON 

ENVIRONMENTAL SERVICES, INC.; AND (2) EXECUTE A CONTRACT FOR 

REMOVAL AND DISPOSAL OF HAZARDOUS WASTE,, DESIGNATED 

WASTE, AND OTHER CONTAMINATED WINIERIALS FOR THE PERIOD 

COMMENCING JULY 1, 1994, AND ENDING JUNE 30, 1995, 1996, OR 1997." 


FINDING AND DETERMINING THAT IT IS IN THE BEST INTERESTS ERESTS OF 

THE PORT TO SOLICIT PROPOSALS FROM SOFTWARE COMPANIES AND 

TO WAIVE COMPETITIVE BIDDING." 



CLAYTON ENVIRONMENTAL CONSULTANTS FOR ENVIRONMENTAL 






ALISTO ENGINEERING GROUP FOR ENVIRONMENTAL CONSULTING 




July 12, 1994 - 13 -


AUTHORIZING THE PORT ATTORNEY TO EN1 ER INTO AN AGREEMENT 

WITH MASON TILLMAN ASSOCIATES, LTD. TO CONDUCT A "CROSON" 

DISPARITY STUDY FOR THE PORT OF OAKLAND." 


GRANTING PATRICK MEDIA GROUP, INC. PERMISSION TO PERFORM 

CERTAIN WORK."' 


GRANTING WESTERN FEDERAL SAVINGS AND LOAN ASSOCIATION 



DECLARING ELECTION OF OFFICERS OF THE BOARD OF PORT 

COMMISSIONERS." 


APPROVING SETTLEMENT AGREEMENT BETWEEN OAKLAND CHAPTER, 

U.P.E. LOCAL 790 CITY OF OAKLAND, PORT CHAPTER, U.P.E. LOCAL 790 

AND PORT OF OAKLAND." 


AUTHORIZING SETTLEMENT OF COMPLAINT NO. 94-054 BY STA E OF 

CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD SAN 

FRANCISCO BAY REGION." 


COMPROMISING AND SETTLING CLAIMS AND .AUTHORIZING 

EXECUTION OF STIPULATED SETTLEMENT." 


AUTHORIZING THE GRANT OF EASEMENT TO PACIFIC BELL," and Port 

Ordinance No. 3219 being, "AN ORDINANCE APPROVING AND AUTHORIZING THE 

EXECUTION OF A LEASE WITH INTERNATIONAL 

ERNATIONAL MARII IME CENTER/BAY 

AREA SEAFARERS SERVICE, DIRECTING RECORDATION THEREOF AND 

MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNEC 110N 

THEREWITH," were read a second time and passed by the following vote: 

July 12, 1994 

- 14 -


Noes: None 

Absent: None 


Port Ordinance No. being, "AN ORDINANCE AMENDING PORT 

ORDINANCE NO. 867 TO CREATE A NEW POSITION OF DIRECTOR OF PORT 

COMMUNICATIONS," and Port Ordinance No. being, "AN ORDINANCE 

AMENDING SEC, 1 ION 1.303 OF PORT ORDINANCE NO. 867 RELATING TO 

PAYMENT OF PUBLIC EMPLOYEE'S RETIREMENT SYSTEM CONTRIBUTIONS 

FOR EMPLOYEES OF PORT OF OAKLAND," were read a first time and passed to print 

by the following vote: 


Noes: None 

Absent: None 


At the hour of 4:10 p.m. the Board entered into closed session for conference with 

Legal Counsel - existing litigation, pursuant to subdivision (a) of Government Code Section 

54956.9. Name of cases: In the matter of Port of Oakland - Dredged Disposal Sites 

Discharge of Dredged Material Runoff into San Leandro Creek, Alameda County 

(Complaint No. 94-054 for Administrative Civil Liability; State of California Regional Water 

Quality Control Board San Francisco Bay Region); Arbitration of Grievance between 

Oakland Chapter, U.P.E. Local 790 and City of Oakland, joined by Port Chapter, UPE 

Local 790 and Port of Oakland; Delbert Wyatt v. Port of Oakland; Workers' Compensation 

Appeals Board Case No. WCK 0016197; and conference with Legal Counsel - anticipated 

litigation, pursuant to subdivision (b) of Government Code Section 54956.7, one case, 

Conference Committee; and conference with Real Property Negotiator, pursuant to 

Government Code Section 54956.8, property - Galbraith Golf Course, negotiating parties - 

July 12, 1994 - 15 -

City of Oakland and Port of Oakland, under negotiation - price and terms of payment. 

The Board reconvened in open session at the hour of 5:00 p.m. 

At the hour of 5:05 the meeting was adjourned to Monday, July 18, 1994, at the hour 

of 3:00 p.m., in the office of the Board, on a motion duly made and seconded. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The meeting was reconvened on July 18, 1994, at the hour of 3:14 p.m., in the office 

of the Board, second floor, 530 Water Street, Oakland, California, President Lockhart 

presiding appropriate notice having been given and posted. 




A the hour of 3:30 p.m. the Board entered into closed session for conference on 

Labor Negotiations as provided under Government Code Section 54957.6; and for 

conference with Real Property Negotiator as provided for under Government Code Section 

54956.8, Property - Galbraith Golf Course, Negotiating Parties - City of Oakland and Port 

of Oakland, Under Negotiation - Price and Terms of Payment. The Board reconvened in 

open session at the hour of 4:00 p.m. 



Noes: None 

Absent: None 


July 12, 1994 


ON THE PASSING OF FRANK H. OGAWA." 

- 16 -

At the hour of 4:10 p.m. the meeting was adjourned to Tuesday, July 26, 1994, at the 

hour 3:00 p.m., in the office of Board, on a motion duly made and seconded in honor of and 

out of respect to the memory of the late Frank Ogawa, Member, Oakland City Council. 

July 12, 1994 - 17 - 


ADJOURNED REGULAR MEETING OF THE BOARD OF PORT COMMISSIONERS 



The regular meeting of Tuesday, July 19, 1994, was adjourned to Tuesday, July 26, 

1994, at the hour of 3:00 p.m. by the Secretary of the Board due to the absence of all of the 

members of the Board. 

a****** * * * a a a a **************************** * * * * * 

The meeting was reconvened on Tuesday, July 26, 1994, at the hour of 3:25 p.m., in 

the office of the Board, second floor, 530 Water Street, Oakland, California, President 

Lockhart presiding, appropriate notice having been given and posted. 

Commissioners present: Cole, Kramer, Loh, Ortiz, Vohs 

Commissioners absent: Broussard - 1 



Assistant Port Attorney, Thomas Clark; Director of Aviation; Director of Commercial Real 

Estate; Director of Human Resources; Director of Finance; Director of Maritime; Director 

of Governmental Affairs; Director of Policy and Strategic Planning; Director of Equal 

Opportunity; Chief Engineer; and Secretary of the Board. 

The minutes of the regular meeting of March 1, 1994; the regular meeting of July 5, 

1994; the adjourned regular meeting of July 12, 1994; the adjourned regular meeting of July 

12, 1994; and the adjourned regular meeting of July 18, 1994 were approved as submitted 


The Director of Finance, originally scheduled for the informal portion, informed the 

Board of the procedure for the Declaration of Surplus and of the Payments to the City of 

Oakland, and the allocation of Fiscal Year 94-95 Capital Reserve Fund. 


discussing the filling of the Director of Communications position pursuant to Government 

Code Section 54954.5 and reconvened in open session at the hour of 4:40 p.m.

Commissioner Vohs, Chair of the Audit & Finance Committee, informed the Board 




Commissioner Loh,, Chair of the Customer Relations and Employment Development 


agenda. 

Recommendation for First Reading of Ordinance Approving Agreement to Terminate 

the Lease with the City of Oakland for Galbraith Golf Course and Approving a New Lease 

of the Galbraith Golf Course to the City of Oakland was the subject of a memo to the 

Board from the Director of Aviation notifying the Board that the Army Corps of Engineers 

requires that the Port of Oakland, as the Project Sponsor for the Oakland Harbor 

Deepening Project, provide an upland disposal site for a portion of the material to be 

dredged from the Inner and the Outer Harbor channels. In anticipating this requirement, 

the Port and the City entered into a Memorandum of Understanding to improve the 

Galbraith Golf Course through its use as an upland disposal site for the dredged material. 

As provided in the MOU, the City and the Port have negotiated two agreements. One 

agreement is a Lease Termination Agreement to terminate the existing lease to the City of 

the Galbraith Golf Course. The other agreement is a new lease of the Galbraith Golf 

Course by the Port to the City, and it was recommended that the Board approve the two 

agreements. The Termination Agreement provides for the termination of the 1965 lease 

between the City and the Port for the use of the Galbraith Golf Course site. The 1965 

Lease was for a term of 50 years. The termination would become effective when the Port 

and City both execute the Termination Agreement and the new Lease, and when the City's 

agreement with its Master Concessionaire is terminated and the Master Concessionaire has 

vacated the premises. The City has paid no rent to the Port since 1987. The rental 

delinquencies through February 1993 total approximately $300,000.00, and extrapolated 

July 26, 1994 

- 2 -

through July 1994 total about $375,000.00. The Port would forgive the City all of the rent 

delinquencies. The City would be responsible to terminate the City's agreement with, and 

remove, the Master Concessionaire. The Port would be responsible for the two 

subconcessionaires (driving range and snack bar). The Port would agree to enter into a 

Management Agreement with the City for the City to coordinate the golf related activities 

that can continue to operate on the premises compatibly with the dredging project and for 

which the Port grants concession rights. The Port will assume responsibility to take 165 acre 

foot of reclaimed water from the East Bay Municipal District each year until the City 

assumes responsibility for taking the water when the new Lease becomes effective. The Port 

will subsidize play for Oakland resident Senior Galbraith golfers who play at the Tony Lema 

or Marina Golf Courses in San Leandro. The Port will provide employees who are 

displaced as a result of the dredge project assistance in finding other jobs through the Port's 

Employment Resources Development Program. The new Lease initially would cover the 

same premises (about 168 acres) as the existing Lease. The design for the new golf course 

would incorporate an up to approximately 2 acres sliver of land contiguous to the existing 

road access to the Airport for use in the proposed Airport Roadway Project. The City 

would cooperate in designing the new course to try to find up to 30 acres of the premises 

that can be returned to the Port for compatible Airport purposes. The Port at its cost would 

hire a golf course business consultant to prepare a business plan for the new course and a 

nationally-recognized golf course architect to design the new course. Both the consultant 

and architect would be experienced in municipal golf course development. Within seven 

years, the Port, at its cost, will construct a new first-class golf course, including a clubhouse, 

and deliver it to the City to manage and operate. The Golf Course Committee, which 

already is operating under the MOU, is composed of 5 members: two appointed by the City 

Manager (one City representative and one golf course user representative), two appointed 

by the Executive Director (one Port representative and one Airport tenant/user 

representative), and the fifth (a community representative) jointly selected by the City 

July 26, 1994

Manager and Executive Director. The term of the new Lease would be 66 years, 

commencing when the Port delivers the new golf course to the City. The City will pay the 

greater of $5,000.00 per month (Base Rent), adjusted annually by the C.P.I., or 40% of the 

City's Net Revenues from the operation of the golf course. "Net Revenues" is defined as 

Gross Revenues less Deductible Items (operating expenses) and Capital Expenditures 

(including an annual Capital Reserve equal to 4% of Gross Revenues for the preceding 

fiscal year. The recommendation was approved on passage of two ordinances to print. 

First Reading Lease and Grants of Easement with 

Chevron U.S.A.. Inc. or Chevron Corporation for New Corporate Aircraft Hangar Facilities 

(Infield Area, North Airport) was the subject of a memo to the Board from the Director of 

Aviation notifying the Board that the Board previously approved the preparation of a 

ground lease with Chevron U.S.A. to permit construction and operation of a new corporate 

aircraft hangar at the Airport. The environmental evaluation for the project has been 

undertaken through an Initial Study and a proposed Mitigated Negative Declaration which 

will be before the Board at the meeting of August 9, 1994. The proposed site encompasses 

approximately 3.81 acres of bare ground located between Hangars 8 and 9 on the North 

Airport. The proposed hangar facility would have a maximum capacity for five corporate 

jets and 5 helicopters. Utilities would be extended to the site from Earhart Road, including 

stormwater lines, electrical, telephone, natural gas, water and sewer lines. The term of the 

lease would be 35 years, after which title to building and improvements on the premises 

reverts to the Port, except that the Port may elect to require Chevron, at its expense, to 

remove any fuel storage tanks it has installed on its premises. The Port would provide 

grants of easements to the site for vehicular, pedestrian, aircraft access and security system 

maintenance. The four grants of easements to the site include: Parcel B - an approximate 

7,480 square foot easement between taxiway D and the site to allow for construction by 

Chevron at its expense of a non-exclusive aircraft taxilane. The Port would own and 

maintain the taxilane; Parcel C - an approximate 6,160 square foot easement between 

July 26, 1994 4

Taxiway D and the site to allow for construction by Chevron at its expense of a non- 

exclusive vehicular and pedestrian driveway. The Port would own and maintain the 

driveway. Parcel D - an approximate 11,573 square foot easement between Earhart Road 

and Taxiway D that corresponds with an existing striped vehicular and pedestrian driveway 

over apron area; and Parcel E - an approximate 19,272 square foot easement between 

Earhart Road and the northern boundary of the site to allow utilities and security-related 

improvements to be brought to the site. Chevron would own and maintain the security- 

related improvements. The principal financial aspects of the proposed ground lease include 

an estimated $46,135.00 to the Port in ground rent revenue during the construction period; 

post-construction revenue of $110,725.00/yr from ground rent. The ground rent levels would 

increase over the 35 year term of the lease based upon changes in the Consumer Price 

Index, appraisals of the market value of the premises and certain future off-site 

improvements when made by the Port. Chevron would also be obligated to pay the Port, 

on a monthly basis, a fuel flowage fee for every gallon of aviation fuel pumped which is 

estimated to be $36,000.00/yr. It is expected that the Chevron contractor will perform off- 

site improvements for the installation of utilities with cost reimbursement to Chevron at 

$677,000.00. Chevron and the Port have agreed to a hazardous materials provision which 

includes limits on the Port's liability in the event of discovery of hazardous materials. It was 

recommended that the Board approve the first reading of an ordinance approving the 

ground lease and grants of easement with Chevron U.S.A., Inc. or Chevron Corporation. 



of One Year or Less with Rainin Instrument Company, Inc. (7951 Earhart Road, North 


recommending approval to renew the agreement with Rainin Instrument Company for 

exclusive use of 837 square feet of office space, 199 square feet of restroom facilities, 8,877 

square feet of hangar area, 9,000 square feet of apron area, and non-exclusive use of 252 

July 26, 1994 5

square feet of common entry area all located in and adjacent to Bay A of Building L-710, 

North Airport, at $3,815.51 per month, effective July 1, 1994. The recommendation was 


Approval to Give First Reading to an Ordinance Authorizing the Execution of a 

Purchase and Sale Agreement with Oakland Executive Center for the Property Located at 

Oakport and Hassler Way was the subject of a memo to the Board from the Director of 

Commercial Real Estate notifying the Board that Oakland Executive Center, a California 

general partnership, currently has a lease with the Port for 9.49 acres of land in the Oakland 

Airport Business Park. The land is improved with a twelve-story, Class A, office building 

(known as the Airport Corporate Center) containing approximately 270,000 square feet. All 

improvements were constructed by the lessee. The 66-year ground lease expires on 

February 28, 2047. The port has received an offer from the lessee to purchase the fee 

interest in the land for $3,834,026.00 or $9.27 per square foot, and it was recommended that 

the Board approve an ordinance authorizing execution of a Purchase and Sale Agreement 

and all related sales documents between the Port of Oakland and Oakland Executive 

Center, a California general partnership, for the sale of the land for the price of 

$3,834,026.00. The recommendation was approved on passage of an ordinance to print. 

Approval of Assignment of Leases from Resolution Trust Corporation as a 

Conservator for Western Federal Savings Bank to Larry P. Chao and Julie C. Chao for the 

Property Located at 1900 and 2000 Embarcadero was the subject of a memo to the Board 

from the Director of Commercial Real Estate notifying the Board that Western Federal 

Savings Bank has two ground leases in the Embarcadero Cove area covering 5.77 acres of 

land. The term of the leases is 50 years with an expiration date of December 31, 2042. The 

two office buildings (Cove II and Cove IV), containing a total of approximately 140,000 

square feet, were constructed on the site by the lessee. The Port receives a combined 

minimum rent of approximately $184,000.00 per year against 8% of office gross receipts and 

3 1/2% of restaurant gross receipts. The Resolution Trust Corporation as Conservator for 

July 26, 1994 6

Western Federal Savings ]Bank has requested the assignment of the leases to Larry P. Chao 

and Julie C. Chao, as husband and wife. The purchase price is $4,000„000.00. Financing 

consists of a Note in favor of Resolution Trust Corporation as Conservator for Western 

Federal Savings bank, in the amount of $2,800,000.00. The lessee has also requested to be 

released from liability from and after the assignment is finalized and that the Port execute 

a Ground Lessor Estoppel Certificate. It was recommended that the Board approve the 

request for the assignment of the two Leases from the Resolution Trust Corporation as 

Conservator for Western Federal Savings Bank to Larry P. Chao and Julie C. Chao, as 

husband and wife, consent to the encumbrance of the Leases, consent to the release of 

Western Federal Savings Bank from the Leases and authorizing the Executive Director to 

execute the Assignment and Assumption of Ground Lease document, Ground Lessor 

Estoppel Certificate and other documents related to the assignment of the Leases. The 


Recommended Approval of Fiscal Year 94-95 Annual Target Rental Rates for License 

and Concession Agreements was the subject of a memo to the Board from the Director of 

Commercial Real Estate recommending approval of certain negotiator's authority for target 

rents for the renewal of existing license and concession agreements. It was noted that each 

renewal when current is negotiated within the target rents and brought before the Board for 

approval. The recommendation was approved on passage of Resolution No. 94276. 

Recommended Approval of a New Lease Agreement with Dealey Renton & Associates 

for 16,052 Square Feet of Rentable Office Space on the 2nd Floor of Port Building F-107 


recommending approval of a new lease with ]Dealey Renton & Associates, insurance 

brokers, for 16,052 rentable square feet of office space on the 2nd floor of Port Building F- 

107, 66 Jack London Square. The initial term will be five (5) years and six (6) months with 

one five (5) year option to extend the term. The term shall commence November 15, 1994. 

The monthly rent will be $21,819.00/mo, or approximately $1.3593 per rentable square foot 

July 26, 1994 7

full service gross per month. The new base rent during the option period will be either 

115% of the initial base rent or 90% of fair market rent, whichever is less. The rent for the 

first month of the lease will be abated. The lessee will pay $21,819.00 as a refundable 

security deposit. If the lessee faithfully performs its obligations under the lease for a period 

of one-year from lease commencement, the security deposit shall be returned to the lessee. 

Tenant improvements are turnkey not to exceed $29.95 per rentable square foot. The Port 

will provide a total of twenty (20), non-reserved parking stalls in the Webster St./ 

Embarcadero surface lot. The tenant shall pay, as additional rent, tenant's share of any 

increase in operating expenses and any increase in possessory interest taxes in any 

subsequent comparison year above the base expense year. The Lessee will have a 

conditional right to lease adjacent space on the 2nd floor which might become available. 

The Port will pay a broker commission to James W. Gann Jr. and Chris Gehrkin in the 

amount of $67,857.09 with the recommendation that one-half of the commission be paid 

upon execution of the lease, and one-half upon occupancy, which is standard in the 

brokerage industry. The proposed project is categorically exempt from CEQA but does 

require a minor permit from BCDC regarding construction within the 100 . shoreline band 

as the building falls partially within their jurisdiction. The recommendation was approved 

on passage of Resolution No. 94285 and on an ordinance to print for payment of brokerage 

fee. 

Substitution of Drywall Subcontractor for "Construction of Passenger Rail Station 

Facility, Jack London Square" was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the contract with SHC/MARK Diversified for 

the Construction of the Rail Station Facility and that they have requested Board approval 

to substitute their subcontractor performing the drywall work on the subject contract. The 

listed subcontractor, Northern California Interiors, does not have a valid current contractor's 

license, and SHC/M legally cannot enter into a contract with an unlicensed subcontractor. 

It was recommended that the Board approve the addition of G & S Drywall, as the new 

July 26, 1994 8

drywall subcontractor to perform the work. The recommendation was approved on passage 


Professional Services Agreement with Robert W. Crandall dba Maritime Research 

Bureau was the subject of a memo to the Board from the Director of Maritime notifying the 

Board that Robert W. Crandall was working as a part-time Port employee to assist the 

General Manager of Maritime Operations, and the Director of Maritime, in specific projects 

and negotiation issues related to the Port's Agreement with the U.S. Army, and planned 

improvements to the property leased from the Army and operated as the Bay Bridge 

Terminal. He was also tasked with developing contract histories of some of the Port's 

Maritime Agreements negotiated prior to 1980. Although the planned improvements are 

scheduled to commence shortly, there are still a number of contractual issues to be resolved 

and it was recommended that the Board authorize a Professional Services Agreement with 

Robert W. Crandall, dba Maritime Research Bureau. The contract period will be for one 

year, ending June 30, 1995, and for an amount not to exceed $20,000.00, including telephone 

and all expenses. The recommendation was approved on passage of Resolution No. 94278. 

Award of Contract, Dredging of Berths 20, 21, 23, 25. 26 and the Interconnecting 

Channel, 30, 35. 60, 61. 62, 63, 67 and 68 and the Oakland Outer Harbor Channel Area was 

a subject of a memo to the Board from the Deputy Executive Director notifying the Board 

of the three bids received and recommending award of the contract to Dutra Construction 

Company, Inc., the low bidder, at $546,935.00. The recommendation was approved on 


Approval of First Supplemental Agreement with Pelagos Corporation for Submarine 

Geophysical Services for Deepening the Oakland Harbor Channels and Berths to -42 Feet 

was a subject of a memo to the Board from the Deputy Executive Director notifying the 

Board of the agreement with Pelagos Corporation for submarine geophysical investigations 

for deepening the Oakland Harbor Channels and berths to -42 feet. The contract maximum 

is $40,000.00, with authorization for $12,000.00 more upon approval by the Executive 

July 26, 1994 9

Director. The cost of placing dredged material varies greatly with the disposal 

determination. Pelagos' scope of work was to help locate and quantify materials suitable 

for aquatic placement in areas where regulatory agencies had decided that more recent or 

soft sediments were unsuitable for aquatic disposal. To keep the -42 foot dredging project 

on schedule, Pelagos had to perform tasks beyond the scope of the existing contract. The 

cost for these tasks totals $20,913.35 which included extra studies on the sediments to be 

removed. It was recommended that the Board authorize a supplemental agreement for the 

increased scope of work and costs of $20,913.35 associated with the extra work. The 


Terminal Use Agreement with Evergreen Marine Corn. (Taiwan) Ltd. was the 


Evergreen Line is a major Taiwanese Republic of China container shipping line which 

operates globally in numerous trade routes. On the U.S. West Coast, Evergreen presently 

deploys four vessels which call at Los Angeles and San Francisco. The Terminal Use 

Agreement between Evergreen and San Francisco will expire next year, and Evergreen 

Management has approved the future movement of their Bay Area operations to Oakland. 

The staff has concluded negotiations with Evergreen for a new five year term TUA 

following conclusion of the term of their TUA at San Francisco, with Oakland operations 

scheduled to commence in July of 1995. Under the proposed Agreement, Evergreen will 

use the Seventh Street Marine Container Terminal which is operated by Marine Terminals 

Corporation. It was 'recommended that the Board approve the new agreement. The basic 

elements of the new Evergreen agreement include: Evergreen will retain 20% of the 

wharfage from the prevailing Port tariff rates at the time of vessel cargo activity at the 

terminal. Evergreen will also be eligible for an additional wharfage refund at the conclusion 

of each contract year based on various volume levels of loaded twenty-foot equivalent units 

for each contract year. Evergreen will be refunded additional revenue generated based 

upon its contract year volume of Interior Point Intermodal Throughput Service ("IPI") cargo. 

July 26, 1994 - 10 -

Evergreen will receive a 10% discount from the Port prevailing tariff rate for dockage on 

the first 45 calls during any contract year. Evergreen will not make any payments for 

dockage after 45 vessel calls up to and including 52 vessel calls are achieved during any 

contract year. Evergreen will pay reduced dockage rates on all vessel calls which exceed 52 

vessel calls up to and including a cap of 100 vessel calls are achieved during any contract 

year. The proposed TUA will generate new revenue to the Port of approximately $3 million 

for the first contract year. The recommendation was approved on passage of an ordinance 

to print. 

Personnel Items contained in a memo to the Board included several personnel 

actions resulting from the City of Oakland Reduction in Force Program. 

Ms. Sallie Grimes, Local 790 Stewart, appeared before the Board to note that the 

reduction in force by the City was not done in a professional and timely manner. She noted 

that she personally intervened to correct the City's employment records and many of the 

Port's employees effected by the reduction still do not know what their status is in the 

seniority system. 

Ms. Emma Fortuna, Nancy Brown, and Rebecca Simentel, all affected employees, 

appeared before the Board to note their displeasure with the system that put them into a 

month of uncertainty and major employment relocation. 

President Lockhart responded that the unfortunate reduction in force was handled 

with the City of Oakland employment procedures and memorandum of understanding and 

that the Board of Port Commissioners were assured that the reduction in force was handled 

properly. 


Resources recommended the appointments of Thomas W. Gwyn, as Director of Port 

Communications, effective August 1, 1994, at $9,797.00 per month; and Yumanti Epperson, 

as Intern Assignment Youth Aide, effective August 1, 1994, at $4.25 per hour; a salary 

adjustment for Jane A. Keegan, Risk Manager, from $5,459.00 per month to $6,005.00 per 

July 26, 1994 - 11 -

month; and a leave of absence for Sabrina Del Favero, Senior Secretary, for 43 working 

days through September 1, 1994, for medical reasons. Also recommended was the City of 

Oakland's Reduction in Force Program units from the reversions of Port employees to 

former classifications for Stephanie A. Schofield, to Senior Typist Clerk, effective August 

8, 1994, at $2,682.00 per month; Vanessa A. Brooks, to Account Clerk, effective August 1, 

1994, at $2,646.00 per month; Evelyn S. Guibone, to Account Clerk, effective August 1, 

1994, at $2,646.00 per month; and Rebeca R. Simental, to Intermediate Typist Clerk, 

effective August 1, 1994, at $2,362.00 per month. Further recommended were appointments 

of Oakland Employees to assignments at the Port for Gloria Ellis, as Senior Secretary, 

effective July 1, 1994, at $3,009.00 per month; Pamela Primas, as Senior Secretary, effective 

July 1, 1994, at $3,009.00 per month; Beatriz Taylor, as Senior Secretary, effective July 1, 

1994, at $3,009.00 per month; Lawrence Chiu, as Senior Account Clerk, effective July 1, 

1994, at $3,036.00 per month; Lorraine O'Rourke, as Senior Account Clerk, effective July 

1, 1994, at $3,036.00 per month; Virginia Powell, as Senior Typist Clerk, effective July 1, 

1994, at $2,682.00 per month; and Evelyn Guice, as Intermediate Stenographer Clerk, 

effective July 1, 1994, at $2,549.00 per month; and the termination of Crystall Y. Jackson, 

Intermediate Stenographer Clerk, effective July 26, 1994, resulting from the City of 

Oakland's Reduction in Force Program. After considerable discussion, the 

recommendations were approved on passage of Resolution No. 94281 for appointments, with 

Commissioners Kramer and Ortiz voting no; Resolution No. 94282 for Jane Keegan, salary 

rate; Resolution No.' 94283 for extended leave of absence; and Resolution No. 94284 for 

termination, with Commissioner Kramer voting no on the three resolutions. 

Mr. Alfonso Loera, Vice President of the Port Chapter of Local 790, appeared before 

the Board to note certain personal opinions of the results of the City reduction in force. 

Mr. Robert Morgan, representative of the City Chapter of Local 790, appeared 

before the Board to note that the union and the Port made the best effort possible to deal 

with the City reduction in force. He further noted that the unpleasant experiences tested 

July 26, 1994 - 12 -

the abilities of the City, Local 790 and the Port and he noted that he was satisfied that the 

best efforts of all the parties were used to conclude the reduction in force. 

Declaration of Port Revenue Fund Surplus for FY 93-94; Recommendation to 

Transfer Surplus to General Fund of City and to Approve Agreement with City to 

Reimburse Certain City Expenditures for Lake Merritt Trust Purposes was the subject of 

a memo to the Board from the Director of Finance notifying the Board that a review of the 

Port's year-end financial condition, cash position and the future commitments and plans is 

required in order for the Board to consider making a determination that there is a surplus 

at this time of $7,057,381.00 in the Port Revenue Fund. Such a surplus would be sufficient 

to reimburse the City for interest on general obligation bonds benefitting the Port, in the 

amount of $5.2 million, as well as General Services payments of $387,347.00 for Fiscal Year 

93-94 and reimbursement for net city expenditures of local funds for Lake Merritt trust 

purposes up to $1,470,034.00. The amounts for general services and Lake Merritt payments 

are estimates only, and are subject to confirming data to be provided by the City. In order 

to determine if there is a surplus, the Board must consider whether the Port's anticipated 

cash position at the end of Fiscal Year 93-94, together with the cash flow forecasts and 

projected net income for Fiscal Year 1994-95, will provide sufficient funds to support the 

Port's operating budget for Fiscal Year 94-95, the Capital Improvement Program and any 

other Port purposes stated in purposes First through Eighth of Section 717(3) of the Charter 

of the City of Oakland. These Port purposes include insuring payment of Port bond debt 

service, additions to Port reserves for operating contingencies and providing for equity 

investment in future capital projects. Under purpose Ninth, Section 717(3) of the Charter, 

the surplus moneys determined by the Board to exist are to be transferred to the General 

Funds of the City. State Law requires that the surplus, which consists of tideland trust 

funds, be transferred only for trust purposes, including valid trust debts. A $5.2 million 

portion of said transfer would discharge a portion of the $16,149,019.00 remaining obligation 

recognized in the Sixth Supplemental Agreement to the Port's Memorandum of 

July 26, 1994 - 13 -

Understanding with the City Council, for reimbursement of interest paid on general 

obligation bonds issued by the City on behalf of the Port. After this payment, and assuming 

that more than $52 million of last year's surplus or of the currently recommended surplus 

will not be required to be allocated to interest, the Port will have a remaining obligation of 

$10,949,019.00 on interest to be paid back to the City in future years. Last year the Board 

adopted Port Resolution No. 93258 that declared a $7,625,000.00 surplus and authorized its 

transfer to the City's General Fund. The Resolution No. 93258 provided that the transfer 

was to be allocated $5,200,000.00 to interest on the previous debt service paid by the City 

on City general obligation bonds that benefitted the Port, approximately $1,050,000.00 for 

general services combined for the three Fiscal Years 1990-91, 1991-92 and 1992-93, and 

approximately $1,375,000.00 to reimburse the City for net City expenditures of local funds 

for Lake Merritt tideland trust purposes for Fiscal Year 92-93. The amounts for general 

services and Lake Merritt were estimates only because the methodology for establishing 

these amounts had been only tentatively agreed upon between Port and City staff. The 

general services agreement is now in final form. The Port Attorney's office and the City 

Attorney's office in May 1994 jointly provided the general services agreement to the State 

Lands Commission's Chief Counsel for review with a request for any legal objections. The 

Commission's legal staff on July 1, 1994, provided preliminary comments and questions, and 

Port and City staff will provide joint responses in an effort to resolve the issues. The 

general services agreement provides for a combined payment of $1,071,744.00 for the three 

Fiscal Years 90-91, 91-92 and 92-93 based upon application of an agreed-upon methodology 

that would also be used for determining the amount of payments in future years. The Lake 

Merritt agreement provides for a payment of $1,353,256.00 for Fiscal Year 92-93, and 

establishes a methodology for determining the amount of payments in future years. The 

general services and Lake Merritt agreements provide for a cap on total payments as 

follows: (a) for the five fiscal years of Fiscal Year 90-91 through Fiscal Year 94-95 

combined, total general services and Lake Merritt payments shall not exceed $6 million plus 

July 26, 1994 - 14 -

an amount equal to the CPI increase between July 1, 1991, and July 1, 1995, multiplied by 

$1.2 million (the annual average of $6 million for the five fiscal years); and (b) for fiscal 

year 95-96 and subsequent Fiscal Years, total annual combined general services and Lake 

Merritt payments shall not exceed $1.2 million plus an amount equal to the CPI increase 

between July 1, 1991, and the end of the Fiscal Year in question. It was noted that both 

general services payments and Lake Merritt expenditure reimbursements, like interest 

payments, are only payable if and to the extent the Board of Port commissioners declares 

there are surplus monies in the Port Revenue Fund that are not necessary for Port purposes 

at the end of the fiscal year. Also, all transfers from the Port Revenue Fund to the City's 

General fund must be in compliance with applicable legal requirements, including State 

constitutional and trust law and, to the extent Airport revenues are involved, federal law 

regarding the Airport. It was recommended that the Board determine that there is a surplus 

in the amount of $7,057,381.00, or any other amount, in the Port Revenue Fund which is not 

currently necessary for any of the purposes stated in clauses First through Eighth of Section 

717(3) of the Charter, pass a resolution to that effect and authorize the transfer of the 

surplus to the General Fund of the City as payment for the interest on previous debt service 

paid by the City on- general obligation bonds that benefitted the Port as noted in the Sixth 

Supplemental Agreement to the Memorandum of Understanding with the City of Oakland, 

and, subject to timely State Lands Commission staff approval of the general services 

agreement, for general services and for reimbursement for the City's Lake Merritt trust 

purpose expenditures. It was also recommended that the October 31, 1993, deadline to 

execute the general services and Lake Merritt agreements, and for State Lands Commission 

staff approval of the general services agreement, in order for last year's surplus to be 

allocated to general services and Lake Merritt, be extended to December 31, 1994, and that 

this latter date also be the deadline in order to allocate this year's surplus to general 

services and Lake Merritt. Further recommended was authorization, to the transfer of 

surplus to be made in three equal installments on or before July 31, 1994, August 31, 1994, 

July 26, 1994 - 15 -

and September 30, 1994. The recommendation was approved on passage of Resolution No. 

94293. 

Annual Operating Budget for Fiscal Year Ending June 30. 1995 was the subject of 

a memo to the Board from the Director of Finance notifying the Board that the proposed 

Fiscal Year 1994-95 Operating Budget and Capital Award Budget were presented to the 

Board on May 3, May 17, June 7, and June 21, 1994. The proposed Fiscal Year 1994-95 

Operating Budget has been prepared with an anticipated revenue over expense of $2.5 

million representing a 2% return on revenues. The Fiscal Year 95-96 revenue over expense 

is projected to be $2.4 million and represents a 2% return on revenues. The Port 

anticipates operating revenues to be approximately $126.3 million for Fiscal Year 94-95, 

which is 6% more than Fiscal Year 93-94 anticipated revenues. The Port expects Maritime 

revenues to increase about 14%, contributing to the entire revenue growth of the Port. 

South Airport revenues are projected to remain flat with North Airport revenues showing 

an increase of about 6%. Commercial Real Estate and Utilities revenues are forecasted to 

remain flat. The Port budgeted operating expenses of $69.2 million for Fiscal Year 94-95, 

which is 4% higher than budgeted expenses for Fiscal Year 93-94 and 7% higher than 

anticipated expenses for Fiscal Year 93-94. The projected operating expenses of $70.9 

million for Fiscal Year 95-96 are about 2% higher than Fiscal Year 94-95 budgeted 

expenses. The budget for Fiscal Year 94-95 includes 622.4 full-time equivalent employees. 

The proposed budget for Fiscal Year 94-95 includes $1.4 million for Special Services 

Payments to the City in operating expenses, which covers police services at the Airport and 

other specified administrative services that the City provides to the Port. The budget also 

reflects, for the first time, projected General Services and Lake Merritt Payments to the City 

of $1.9 million although actual remittance of these funds will be based on the Board of Port 

Commissioners declaring a surplus at the end of the fiscal year. Debt Service Coverage is 

projected to be 1.81 for Fiscal Year 94-95 and 1.90 for Fiscal Year 95-96 as compared to 

237 for anticipated Fiscal Year 93-94 and 2.22 for budgeted Fiscal Year 93-94. It was 

July 26, 1994 - 16 -

ecommended that the Board adopt a motion approving the proposed Operating Budgets 

for the fiscal years ending June 30, 1995 and June 30, 1996, and adopt a resolution 

appropriating funds for Port operations and maintenance expenses for the fiscal year ending 

June 30, 1995. The recommendation was approved on a motion by Commissioner Cole, 

seconded and passed unanimously, for the Operating Budget. The recommendation was 

approved on passage of Resolution No. 94286 for appropriation for expenses. 

Approval of the Contract. Capital Award Program for Fiscal Year Ending June 30, 

1995 was the subject of a memo to the Board from the Director of Finance notifying the 

Board of the preparation of the proposed Contract Award Capital Program for the Fiscal 

Year ending June 30, 1995, and the Three-Year Capital Improvement Program for Fiscal 

Year 94-95 through Fiscal Year 96-97. The proposed Contract Award Capital Program for 

FY 94-95 is $174 million. The projected contract awards for FY 95-96 through FY 96-97 

are $91 million, for a total three-year Capital Improvement Program of $265 million. For 

the three-year Capital Improvement Program, the expected funding sources include grants 

(36.9%), passenger facility charges (8.3%), Port revenue bonds (24.3%), loans (5.7%), and 

Port cash (24.8%). It was recommended that the Board adopt the Contract Award Capital 

Program for Fiscal Year 94-95 and adopt and approve in concept the establishment of the 

three-year Capital Improvement Program. The recommendation was approved on passage 

of Resolution No. 94287 for 1994-95 and on a motion by Commissioner Cole, seconded and 

passed unanimously, for approval in concept for the three year period. 

Excess Workers' Compensation and Employers' Liability Insurance was the subject 

of a memo to the Board from the Director of Human Resources notifying the Board that 

the Port of Oakland is permissibly self-insured for Workers' Compensation in the State of 

California and excess insurance to protect against catastrophic accidents as with other public 

agencies. Previously the l3oard authorized the placement of Excess Worker's Compensation 

and Employers' Liability Insurance with General Reinsurance Corporation, and Fireman's 

Fund Insurance Companies. It was recommended that the Board affirm the placement of 

July 26, 1994 - 17 -

the policy with a Per Accident Deductible of $350,000.00, with a limit of $100900,000.0o, for 

an annual premium of $56,429.00. The recommendation was approved on passage of 


Approval to Hire Taylor Consulting to Provide Consulting Services to the Human 

Resources Division was the subject of a memo to the Board from the Director of Human 

Resources recommending approval to retain Taylor Consulting, to update and automate the 

Central Records Unit for a proposed fee not to exceed $24,760.00. Taylor Consulting will 

provide the following for the Central Records Unit: A mission statement, clearly defining 

the Unit's objectives; Policies and procedures to promote consistency between the user 

departments and Central Records; An indexing system; A Records Retention Program and 

an automated records system; A means of communication promoting the new Central 

Records system and a user education program to facilitate greater usage of Central Records; 

and training that will enable the staff to use the new processes and automation tools. The 


Mr. Henry Williams, a citizen of West Oakland affiliated with Job Work 

Development, appeared before the Board to inform the Board of his request to train young 

Oakland citizens as truck drivers and the need to provide jobs for West Oakland citizens. 

He specifically asked for funds and equipment for his project. President Lockhart asked Mr. 

Williams to put his project in essay form and discuss the subject with the Port Equal 

Opportunity Department. 

vote: 


Ayes: 

Noes: None 

Absent: 

July 26, 1994 

Commissioners Cole, Kramer, Loh, Ortiz, Vohs 


Commissioner Broussard - 1 

- 18 -



TO RENEW LICENSE AND CONCESSION AGREEMENT ("RENEWAL 

AGREEMENT') WITH RAININ INSTRUMENT COMPANY, INC." 


CONSENTING TO ASSIGNMENT OF LEASE FROM RESOLUTION !RUST 

CORPORATION AS A CONSERVATOR FOR WESTERN FEDERAL SAVINGS 

BANK TO LARRY P. CHAO AND JULIE C. CHAO." 


INS RUC.1 ING PORT STAFF REGARDING RA I ES AND 'PERMS TO BE 

NEGOTIATED WITH EXISTING LICENSEES OF CERTAIN PORT 

PROPERTIES." 


AUTHORIZING SUBSTITUTION OF GYPSUM WALLBOARD/METAL STUD 

SUBCONTRACTOR FOR CONSTRUCTION OF PASSENGER RAIL STATION 

FACILITY, JACK LONDON SQUARE, OAKLAND." 


FINDING AND DETERMINING ERMINING THAT A PROPOSED AGREEMENT WITH 

ROBERT W. CRANDALL DOING BUSINESS AS MARITIME RESEARCH 

BUREAU FOR MARITIME CONSULTING SERVICES CONSTITUTES 



AGREEMENT." 


AWARDING CONTRACT TO DUTRA CONSTRUC HON CO. INC., FOR 

DREDGING OF BERTHS 20, 21, 23, 25, 26 AND THE INTERCONNECTING 

CHANNEL, 30, 35, 60, 61, 62, 63, 67 AND 68 AND THE OAKLAND OUTER 

HARBOR CHANNEL AREA, OAKLAND, CALIFORNIA; FIXING THE 


REJECIANG ALL OTHER BIDS; AND DIRECUNG RETURN OF BID BONDS 

TO BIDDERS." 



AGREEMENT WITH PELAGROS CORPORATION FOR ENGINEERING 




July 26, 1994 - 19 -


Ayes: Commissioners Cole, Loh, Vohs 


Noes: Commissioners Kramer and Ortiz - 2 

Absent: Commissioner Broussard - 1 


vote: 



Ayes: Commissioners Cole, Loh, Ortiz, Vohs 


Noes: Commissioner Kramer - 1 



ASSIGNING JANE A. KEEGAN TO SALARY RA'Z'E WITHIN SALARY 

GRADE 12." 



FAVERO." 


vote: 

PROVIDING FOR LAYOFF OF CRYSTAL Y. JACKSON." 


Ayes: Commissioners Cole, Kramer, Loh, Ortiz, Vohs 

Noes: None 


Absent: Comrnissioner Broussard - 1 

July 26, 1994 - 20 -


APPROVING AND AUTHORIZING PAYMENT OF REAL ESTA IE 

BROKERAGE COMMISSION TO JAMES W. GANN COMMERCIAL REAL 

ESTATE AND NORHEIM & YOST." 


MAKING APPROPRIATIONS OF CERTAIN MONEYS TO PROVIDE FOR 

CERTAIN EXPENDITURES PROPOSED TO BE MADE BY THE ESTIMATED 

BUDGET OF THE PORT OF OAKLAND FOR THE FISCAL YEAR 1994-1995." 


APPROVING THE PORT CONTRACT AWARD CAPITAL PROGRAM FOR 

FISCAL YEAR 1994-95." 


AUTHORIZING RENEWAL OF EXCESS WORKERS' COMPENSATION AND 

EMPLOYEES' LIABILITY INSURANCE." 



TAYLOR CONSULTING FOR HUMAN RESOURCES CONSULTING 





GRANTING WESTERN FEDERAL SAVINGS AND LOAN PERMISSION TO 



ON THE PASSING OF THOMAS B. CROWLEY, SR." 


July 26, 1994 

OF APPRECIATION TO COL. LEONARD CARDOZA." 

- 21 -

vote: 


Ayes: Commissioner Cole, Kramer, Loh, Ortiz 

Noes: None 


Abstained: Commissioner Vohs - 1 



PROVIDING FOR THE REIMBURSEMENT OF INTEREST ON PREVIOUS 

DEBT SERVICE PAID BY THE CITY OF OAKLAND ON CITY OF OAKLAND 

GENERAL OBLIGATION BONDS, FOR THE PAYMENT OF GENERAL 

SERVICES AND FOR THE REIMBURSEMENT OF CERTAIN CITY 

EXPENDITURES FOR LAKE MERRITT TIDELAND TRUST PURPOSES, 

AMENDING PORT RESOLUTION NO. 93258, AND MAKING CERTAIN 

DETERMINATIONS IN CONNECTION THEREWITH." 


ORDINANCE NO. 867 TO CREATE A NEW POSITION OF DIRECTOR OF PORT 

COMMUNICATIONS," and Port Ordinance No. 3221 being, "AN ORDINANCE 

AMENDING SECTION 1.303 OF PORT ORDINANCE NO. 867 RELATING TO 

PAYMENT OF PUBLIC EMPLOYEE'S RETIREMENT SYSTEM CON'IRIBUTIONS 

FOR EMPLOYEES OF PORT OF OAKLAND," were read a second time and passed by 



Noes: None 




AUTHORIZING THE EXECUTION OF A LEASE WITH THE CITY OF OAKLAND 

(THE LEW F. GALBRAITH MUNICIPAL GOLF COURSE)," and Port Ordinance No. 

being, "AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION 

July 26, 1994 - 22 -

OF A I :RASE 1 ERMINisiTION AGREEMENT WITH THE CITY OF OAKLAND (THE 

LEW F. GALBRAITH MUNICIPAL GOLF COURSE)," and Port Ordinance No. 

being, "AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF 

LEASE AND GRANT OF EASEMENTS WITH CHEVRON U.S.A. INC", and Port 

Ordinance No. being, "AN ORDINANCE APPROVING AND AUTHORIZING THE 

SALE OF A 9.49-ACRE PARCEL LOCATED IN THE OAKLAND AIRPORT 

BUSINESS PARK TO OAKLAND EXECUTIVE CEN I ER, APPROVING AND 

AUTHORIZING THE EXECUTION OF AN AGREEMENT THEREFOR, AND 

MAKING CERTAIN FINDINGS AND DE 1 ERMINA'TIONS IN CONNECIION 

THEREWITH," and Port Ordinance No. being, "AN ORDINANCE APPROVING 

AND AUTHORIZING EXECUTION OF LEASE WITH DEALEY, RENTON & 

ASSOCIATES ES INSURANCE BROKERS AND DIREC 1 ING RECORDATION 

THEREOF," and Port Ordinance No. being, "AN ORDINANCE AUTHORIZING 

THE EXECUTION OF TERMINAL USE AGREEMENT WITH EVERGREEN 

MARINE CORP. (TAIWAN) LTD," were read a first time and passed to print by the 


seconded. 


Noes: None 



At the hour of 5:20 p.m., the meeting was adjourned on a motion duly made and 

July 26, 1994 - 23 - 

Ci 9Z- 7 





The regular meeting scheduled for August 2, 1994, was adjourned by the Secretary 

of the Board to 3:00 p.m., August 9, 1994, in the office of the Board„ second floor, 530 

Water Street, Oakland, California, due to the absence of all the members of the Board. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The adjourned regular meeting was held on Tuesday, August 9, 1994, at the hour of 






Also present were the Executive Director; Deputy Executive Director; Assistant Port 

Attorney Thomas Clark; Director of Commercial Real Estate; Director of Human 

Resources; Director of Aviation; Director of Maritime; Director of Governmental Affairs; 

Director of Policy and Strategic Planning; Director of Finance; Director of Equal 

Opportunity; Chief Engineer; Media Relations Manager; and Secretary of the Board. 

The minutes of the regular meeting of March 15, 1994; regular meeting of July 19, 

1994; and the adjourned regular meeting of July 26, 1994 were approved as submitted and 

ordered filed. 

Commissioner Cole, Chair of the Human Resources Committee, informed the Board 


Commissioner Kramer, Chair of the Aviation Committee, informed the Board that 


Commissioner Loh, Chair of the Commercial Real Estate Committee, informed the 


Jnitial Study Certification and Finding and California Environmental Quality Act 

Determination (State Clearinghouse #94063013) Regarding Chevron U.S.A. Inc. (Chevron) 

Hangar Project; Second Reading of Ordinance Approving Ground Lease and Grants of 

Easement with Chevron for New Corporate Aircraft Hangar Facilities; Approval of Port 

Reimbursement to Chevron and Waiver of Competitive Bidding for Certain Port-funded 

Improvements; Approval of Certain Assignments and Subleases; Approval of Building 

Permit; and Approval of Interim License and Concession Agreements (Infield Area. North 

Airport) was the subject of a memo to the Board from the Director of Aviation notifying 

the Board that the Board on July 26, 1994, approved the first reading of an ordinance for 

the ground lease and grants of easement with Chevron U.S.A. Inc. to permit construction 

and operation of a new corporate aircraft hangar at North Airport. Since that date, 

Chevron has advised the Port that it intends to effect a tax-deferred exchange of property 

under Section 1031 of the International Revenue Code as a means of financing the aircraft 

hangar. In order to accommodate Chevron's tax objectives, the Port would approve in 

advance certain subleases and possible assignments to corporations established solely to 

facilitate the tax-deferred exchanges. Chevron Corporation would guarantee to the Port 

compliance with all underlying leases, grants of easement and license and concession 

agreements, and would further indemnify the Port for any liability arising as a result of the 

Port's accommodation to Chevron in the tax-deferred exchange. In compliance with the 

California Environmental Quality Act (CEQA), an Initial Study was prepared and concluded 

that all impacts could be reduced to insignificant levels by the incorporation of a Mitigation 

Monitoring Plan. Chevron has requested that the Board approve a sublease from Chevron 

to Lyontree Equity Exchange, Inc., a California corporation ("Lyontree") for a term of 

approximately 31 years 6 months, for the sole purpose of constructing the improvements 

under the lease; the assignment by Chevron of its rights under the grants of easement to 

Lyontree; an assignment by Lyontree of its subleasehold interest and all of its right, title and 

interest in and to the improvements, as well as its rights under the grants of easement, to 

August 9, 1994 

- 2 -

Chevron upon completion of construction; a sublease by Chevron of the ground lease 

including the improvements to Chevron Corporation for the balance of the lease term less 

one month; the assignment of the entire leasehold interest and improvements to the 

Corporation at any time during the term of the lease; the assignment of the grants of 

easement to the Corporation; and any other actions related to the above assignments and 

subleases necessary to effectuate the purposes thereof and the tax-deferred exchange. 

Lyontree has submitted a building permit application which includes: Site grading and 

excavations; Installation of off-site utility connections to Earhart Road; Construction of the 

hangar building; Installation of two 15,000 gallon and one 1,000 gallon underground tanks 

with fuel dispensing equipment; Installation of paving, landscaping, lighting; and Roadway 

stripping and installation of access security equipment. Additionally, the lease will require 

the construction of any necessary blast screens should they be warranted. The estimated 

cost for the work is $7,500,000.00. Lyontree will use two interim license agreements to 

permit construction to start as soon as possible rather than when the lease commences on 

October 1, 1994. This early start would diminish the prospect of the hangar facilities not 

being ready for occupancy by September 1995, the date Chevron's existing hangar lease 

expires at SFO. The on-site license agreement includes among its terms that the premises 

are the same as in the ground lease; the term is from August 10, 1994 to October 31, 1994 

or to commencement of the term of ground lease, whichever comes first; the rent is 

$4,613.54 per month; and the use is initially for preliminary construction matters, with full 

construction of the hangar facility being permitted upon amendment of the license 

agreement to incorporate final lease terms into the license. Following construction, the rent 

would increase to $110,725.00 per year. The off-site license and concession agreement 

includes among its terms that the premises are 2.26 acres or 98,356 square feet of paved 

land on the perimeter of the leased premises on the infield area between Hangars 8 and 9 

and 1,052 square feet of shop space and 3,880 square feet of apron space in and adjacent 

to Building L-810, Bay D; the term is from August 10, 1994 to July 31, 1995; and the rent 

August 9, 1994 - 3 -

is $1,675.11 per month. It was recommended that the Board approve the Initial 

Study/Negative Declaration for the Chevron Corporate Hangar Facility; approve the 

mitigation measures listed in the Mitigation Monitoring Plan which shall constitute the Port 

of Oakland's reporting or monitoring program under CEQA, and find that the Project will 

have no significant effect on the environment because the mitigation measures will reduce 

potential impacts to a level of insignificance; find that the Initial Study/Negative Declaration 

reflects the independent judgment of the Board of Port Commissioners; approve the second 

reading of an ordinance approving the ground lease and grants of easements with Chevron 

U.S.A. Inc.; approve the waiving of competitive bidding for certain off-site improvements 

to be constructed by Lyontree at an estimated cost of $667,000.00 to be reimbursed by the 

Port; approve the actions requested by Chevron relating to certain assignments of the lease 

and grants of easements and to certain subleases, subject to Chevron Corporation's 

guarantee thereof and further subject to the approval by the Executive Director and Port 

Attorney as to the final terms thereof; approve by interim license and concession agreements 

as described, including the subsequent amendment thereof to incorporate final lease terms; 

approve the building permit application; and authorize the Executive Director to take such 

actions as may be necessary to carry out the transactions recommended. The 

recommendations were approved on passage of Resolution No. 94294 for approving Initial 

Study and Negative Declaration and appropriate mitigation measures; on final passage of 

Ordinance No. 3224 for ground lease and grant of easements; Resolution No. 94295 for 

building permit; and Resolution No. 94296 for waiving of competitive bidding, sublease of 

lease to Lyontree, other assignments and authority of the Executive Director for further 

actions. 

Approval to Submit Passenger Facility Charge Application (Oakland International 

Airport) was the subject of a memo to the Board from the Director of Aviation notifying 

the Board that on June 26, 1992, the FAA approved collection of a $3.00 Passenger Facility 

Charge at the Airport and, by Port Ordinance, air carriers began collection of the $3.00 PFC 


4

on September 1, 1992. Since that time, the Port has received approval to collect $25.3 

million in PFC revenues to fund capital projects at the Airport. As of July 26, 1994, the 

Port has collected approximately $17 million in PFCs and approved PFC collection levels 

are anticipated to be reached between February and March 1995. In order to maintain the 

PFC funding stream, the. Airport must periodically submit applications to FAA which 

describe upcoming projects in detail, substantiate project eligibility and discuss consultation 

with air carriers that serve the Airport. As required under Federal Aviation Regulation Part 

158, Passenger Facility Charges, the Airport held its meeting for consultation with air 

carriers and foreign air carriers to discuss the projects proposed for PFC funding under the 

Port's third PFC application. As the Port has now satisfied the requirements for 

"Consultation with Air Carriers," the Port is now eligible to file its PFC application with the 

Federal Aviation Administration (FAA) for approval to collect $16.3 million in PFCs on 

behalf of eight projects programmed in the Airport's CIP. Two of the major projects 

include: Improvements to Gate 26A and Construction of a New Airport Rescue and Fire 

Fighting Facility. It was recommended that the Board authorize the filing of an application 

with FAA for approval to collect a $3.00 Passenger Facility Charge. The recommendation 


Airport Parking Lot Contract Request for Proposals was the subject of a memo to 

the Board from the Director of Aviation notifying the Board of the three year Agreement 

between the Port of Oakland and West Coast Parking Company to manage the Airport 

Parking Operations and that the Agreement expires at midnight, September 30, 1994. West 

Coast Parking has served notice to the Port that they wish to withdraw from the Agreement 

at the end of the term of the Agreement. The Request for Proposal has been prepared, and 

it was recommended that the Board authorize the solicitation of proposals for the operation 

of the Airport parking lots. Basic provisions of the RFP include that the proposed operator 

have at least five years of experience in the airport parking operations management business 

and for the past three years managed at least one parking contract with the following 


5

minimum elements: 6,000 spaces; $10 million in annual gross revenues; and 7-day, 24-hour 

operations; and the operation utilizes an on-line, automated revenue control system which 

incorporates a nightly license plate inventory. The contractor will have primary 

responsibility for the overall management of the airport parking system. On a day-to-day 

basis, the contractor will manage, staff, and operate the airport parking system according to 

the terms of the Management Agreement and the Policies and Procedures Manual. This 

includes collecting, depositing, and accounting for the proper parking fees due the Port; 

operating the revenue control system; and performing other operational, maintenance, and 

customer services tasks as specified. The base term of the contract is two years, with three 

one-year renewal options. The recommendation was approved on passage of Resolution No. 

94298. 

Approval of Third Supplemental Agreement with Dollar Systems, Inc. (#1 Airport 

Drive, South Airport) was the subject of a memo to the Board from the Director of Aviation 

notifying the Board that Dollar Systems, Inc. is one of the six airport rental car licensees 

that share the ready car lot in the Airport parking lot. Parking lot space between and 

adjacent to the ready car lot and Airport Drive 'is available to those licensees that wish to 

install larger customer service booths. Dollar is now requesting the right to install a service 

booth, and it was recommended that the Board approve the Third Supplemental Agreement 

with Dollar Systems, Inc. which will provide 305 square feet of land adjacent to the ready 

car lot and Airport Drive. The monthly rent would be $62.37. The recommendation was 


Approval of New License and Concession Agreement with Air General, Inc. (7683 

Earhart Road, North Airport) was the subject of a memo to the Board from the Director 

of Aviation recommending approval of a new agreement with Air General, Inc., for 480 

square feet of shop area in. Building L-811, North Airport, at $250.00 per month, effective 

June 25, 1994. The recommendation was approved on passage of Resolution No. 94300. 

Award of Contract, Construction of Entrance Vestibule at Terminal II - Building 


- 6

M-130, South Airport. MOIA was the subject of a memo to the Board from the Deputy 

Executive Director notifying the Board of the two bids received and recommending award 

of the contract to Meddco Metals, the low bidder, at $121,800.00. The recommendation was 


Recommended Approval of Agreement with the Oakland Redevelopment Agency for 

$2.25 Million Contribution for Jack London Square Development and Approval of 

Amendment to OPA Space Lease in Washington Street Parking Garage was the subject of 

a memo to the Board from the Director of Commercial Real Estate notifying the Board of 

the discussions between the staff and the City of Oakland, Office of Economic Development, 

and members of the Port's Commercial Real Estate Division concerning the leasing efforts 

at Jack London Square. The theater development and the possible lease with Yoshi's 

nitespot and restaurant are of particular importance since it is believed that these 

entertainment uses will act as a catalyst to attract other potential tenants in the area. The 

City Council, sitting as the Redevelopment Agency at its July 26, 1994 meeting, voted to 

make available $2.25 million to assist in the development of the theater and Yoshi's. The 

money would take the form of an agency contribution and would be reimbursable to the 

City out of net rent paid to the Port from tenants of the theater and Yoshi's site after the 

Port receives a ten percent priority return on its invested capital from these sites. It was 

recommended that the Board approve and authorize the Executive Director to execute an 

agreement with the City to cover the proposed contribution, subject to successful lease 

negotiations, for the theater site and Yoshi's night club site. The proposed Yoshi's project 

consists of a lease and tenant improvements for 17,000 square feet of ground-level retail 

space in the Washington Street Garage located on the Embarcadero between Washington 

and Clay Streets adjacent to Jack London Square. The project is categorically exempt as 

the project is limited to the interior or exterior alterations to existing facilities. The 

environmental effects of the Jack London Square Project Development Plan Final EIR were 

certified along with related mitigated measures on December 4, 1984. The 


7 -

ecommendations were approved on passage of Resolution No. 94302 for agreement with 

the City, and Resolution No. 94303 for amending use of the site. 

First Reading of an Ordinance Approving Lease Option and Lease with Dow-Pac 

Properties for Certain Real Propert y at the Corner of Einbarcadero and Washington Streets 


notifying the Board of the negotiations between the Port and Donald L. Jones, a local 

developer, regarding the ground lease for the development of a proposed theatre complex 

on the 40,000 square foot surface parking site located at the corner of Washington and 

Embarcadero Streets across from the Washington Street Parking Garage. Jones would enter 

into a sublease with Phil Harris, an Oakland businessman, who currently operates 22 

screens. The construction of the theatre (estimated at $4.2 million) would be financed by 

Jones, and the furniture, fixtures and equipment (estimated at $1.2 million) would be 

financed by Harris. It was recommended that the Board approve the lease option 

agreement. Basic terms include an option fee of $10,000.00. The option fee is refundable 

within the first sixty days. If the lease is exercised, the option fee would be credited toward 

the deposit. The term of the lease option would be five months. The option period could 

be extended, in one-month increments, up to a total of three additional months for a 

monthly payment of $2,083.00. These monthly payments are not refundable and may not 

be credited toward the deposit. During the option period, a schedule is set forth for 

executed contracts, building permit approval, financing and affirmative action requirements. 

In the event that specific deadlines are not met, the optionee may pay the Port an additional 

non-refundable $65,000.00, which would extend all deadlines to the last day of the Option 

period. The premises would consist of approximately 40,000 square feet. The lease term 

is 35 years with three 5-year options. The premises would be developed with a first-class 

movie theater containing approximately 38,000 square feet with a seating capacity not to 

exceed 3,000 seats. There would be nine individual auditoriums. There would be a 

construction rental of $2,083.00 per month beginning at the commencement of the term of 


- 8

the lease and extending until the earlier of the following occurs: completion of construction; 

occupancy or commencement of theatre operations; or 12 months after commencement of 

the lease term. The minimum monthly rental would be $100,000.00 per year. The minimum 

rent would be adjusted every 5 years to reflect the CPI or to equal 80% of the average 

monthly rent paid to the Port during the preceding 60 months, whichever is greater. In no 

event shall the increase be less than 10% or greater than 20%. In addition, the lessee would 

pay percentage rent equal to 2.25% of all box office sales, concessions sales and ancillary 

income, less sales and admissions taxes paid, less minimum rent. The security deposit is 

$25,000.00. The lessee would be required to operate the facility as a movie theatre for the 

initial 10 years of the lease unless both the Port and the lessee agree to a change in use. 

Between the 11th and 20th year of the lease, if annual gross sales fall below $3,000,000.00, 

the lessee may request a change in use under certain conditions. The Port agrees to 

maintain the existing parking program, which provides three hours of free parking, for the 

initial five years of the lease. In the event that the Port changes the program, a validation 

program will be available to the lessee. The Port will ensure that patrons are provided with 

an 8-minute exit time. The lessee shall pay its share of security charges on a pass-through 

basis. In addition, the lessee shall contribute $.28 per square foot per year towards common 

area maintenance charges, and shall pay 12% of the total of these two figures to cover 

administration. The lessee would prepare an annual plan for renovation and replacement 

of capital items. Beginning in year 5, the lessee would set aside $20,000.00 per year to fund 

these items. The lessee would pay all utilities and taxes, and obtain all permits. An 

environmental evaluation for the project has been undertaken through an Initial Study and 

a proposed Mitigated Negative Declaration which will be before the Board at its meeting 

of September 13, 1994. The recommendations were approved on passage of an ordinance 

to print. 

First Reading of an Ordinance Approving and Authorizing the Execution of Real 

Estate Purchase and Sale Agreement for Sale to AMB Properties. L.P.. of Certain Real 


9

Property located at the Northwesterly Corner of Kennedy and Embarcadero Streets and 

Approval of the County's Initial Study/Negative Declaration was the subject of a memo to 

the Board from the Director of Commercial Real Estate notifying the Board that the Port, 

AMB Properties, L.P., a California limited partnership, and the County of Alameda have 

been negotiating a Real Estate Purchase and Sale Agreement whereby the County would 

purchase approximately 62,215 square feet of unimproved Port property at the corner of 

Kennedy and Embarcadero Streets in Oakland. The property is currently vacant. AMB 

intends to construct a household hazardous waste collection and transfer facility on the 

property to be maintained and operated by the County. AMB intends to assign its rights 

and delegate its duties under the Agreement to the County. The County, which already 

operates household hazardous waste collection and transfer sites in Livermore and Hayward, 

is mandated to secure an Oakland site. The property will offer a convenient drop-off 

location for residents and small businesses in Alameda County. AMB has proposed a 

purchase price of $10.00 per square foot, for a total of $622,150.00 and an appraisal 

confirms that this represents market value for the property. The County, as Lead Agency 

under CEQA has prepared, approved and accepted the Initial Study and adopted the 

mitigated Negative Declaration for this project. The County found no unavoidable 

significant impacts would be caused by the project. It was recommended that the Board 

approve and adopt the Initial Study/Negative Declaration prepared by the County of 

Alameda, and give first reading to an ordinance authorizing the Executive Director to 

execute a Real Estate Purchase and Sale Agreement between the Port of Oakland and 

AMB and all other related documents for the sale of the aforementioned land for the price 

of $622,150.00. The recommendation was approved on passage of an ordinance to print. 

Authorization to Approve Lease by Port of PG&E-owned Propert y at Clay and 

Embarcadero Streets was the subject of a memo to the Board from the Director of 

Commercial Real Estate notifying the Board that the Port has entered into discussions with 

Pacific Gas & Electric Company to acquire the approximately 19,000 square foot site 


- 10 -

located at the northwesterly corner of the Embarcadero and Clay Streets across from the 

Port Building. The site would be improved with a surface parking lot. The site, previously 

owned by the Port, was one of two parcels exchanged to PG&E in 1984 for the property 

which currently houses Howard Terminal. During the intervening ten years, PG&E has used 

this site for storage for its transient construction group. The Port has contracted with an 

appraiser approved by PG&E to determine market value, and has offered to fund an 

environmental assessment of the site. It is critical that the site be improved for parking in 

conjunction with the opening of Beverages & more! in late September. In order to ensure 

that this schedule can be met, the Port has requested that PG&E lease the site to the Port 

during the interim period prior to the sale. The proposed project consists of the 

construction of a surface parking lot providing 60 spaces. The project is categorically 

exempt and does not require the preparation of an environmental document. It was 

recommended that the Board authorize the Executive Director to execute lease term for a 

term of up to 10 years at the market rate with Pacific Gas & Electric Company for the Clay 

Street site. The recommendation was approved on passage of Resolution No. 94304. 

Approval to Hire L. Joseph Boss and ABM Engineering to Provide Professional 

Services to the Commercial Real Estate Division to Continue Operation of the Port 

Property Located at 455 Hegenberger Road was the subject of a memo to the Board from 

the Director of Commercial Real Estate notifying the Board that as a result of the recent 

orders from the Federal Bankruptcy Court Judge involving the Oakland Airport Hotel 

Corporation dba Ramada Hotel, the Port will soon be in a position to have the Sheriff evict 

OAHC. If this eviction occurs the Commercial Real Estate Division will be prepared to 

take immediate control of the hotel once the premises are obtained through the eviction 

process. The Port will contract with an interim hotel manager and attempt to keep the 

existing union hotel employees on the hotel payroll. The goal of the Commercial Real 

Estate Division is to re-lease the hotel as soon as possible to a viable tenant that would 

ensure the Port receives "market" rent. It was recommended that the Board authorize the 


- 11 -

Executive Director to execute contracts with L. Joseph Boss to perform hotel management 

duties immediately upon the Port gaining control of the property, and with ABM 

Engineering Services, a division of American Building Maintenance Industries, Inc., to 

provide payroll services for the Port by employing the hotel employees and paying wages, 

benefits, payroll related taxes and Workers Compensation Insurance. It is proposed that 

L. Joseph Boss would be paid on a per diem basis at a rate of $500 per day plus 

reimbursement of ordinary operating expenses, and the Port would reimburse ABM for the 

direct expenses for employment of the hotel workers and a payroll service fee of 5% of the 

direct employment costs. The recommendations were approved on passage of Resolution 

No. 94305 for ABM services, and Resolution No. 94306 for L. Joseph Boss services. 

Authorization to Enter into an Agreement with EBMUD for Replacing Their Water 

Main at the Amtrak Station Project Site was the subject of a memo to the Board from the 

Deputy Executive Director notifying the Board that the East Bay Municipal Utility District 

has an old 6" water main in the vacated section of Alice Street where the Port will soon be 

building the plaza area of the Amtrak Station. The water line is in very poor condition and 

there have been a couple of joint failures since construction work started on the Amtrak 

Station. Other joint failures are likely in the future which could result in considerable water 

damage in the plaza area as well as disruption to the station's operations. The Amtrak 

Station contractor is scheduled to start work on the subgrade and aggregate base for the 

brick pavers in the plaza area above the water main during the first week of September 

1994. To avoid removing the pavers and digging up the area to install a new line after the 

area has been paved, it will be necessary for EBMUD to replace the line before the 

contractor starts the grading work. EBMUD has submitted to the Port a proposal to replace 

the line under which the Port and EBMUD would reach pay one-half of the actual 

replacement cost. EBMUD's estimated total cost is $58,200.00 and the Port's expected 

share is $29,100.00. EBMUD's proposal requires the Port to pay its share of $29,100.00 in 

advance. It was recommended that the Board authorize the Executive Director to enter into 


- 12 -

an agreement with EBMUD for replacement of their water main in accordance with the 

provisions. The recommendation was approved on passage of Resolution No. 94307. 

First Reading of an Ordinance Approving the Land Sale to Caltrans of Port Property 

Located South of the Interstate 80 Approach to the Bay Bridge Toll Plaza for the State 

Interstate 80/880 Cypress Replacement Project Between the Bay Bridge Toll Plaza and 

Burma Road Connecting 1-80 and New 1-880 Freeways was the subject of a memo to the 

Board from the Director of Commercial Real Estate notifying the Board that the State of 

California Department of Transportation improvements to connections between 1-80 and 

the new 1-880 Freeway require the acquisition of approximately eight acres of Port property 

along the southern side of the Bay Bridge Toll Plaza. Their design plans include the 

following: construction of a temporary off ramp to be used as a detour during construction; 

a connector ramp between eastbound 1-80 and the new 1-880; an elevated off ramp from 

westbound 1-80 to the Oakland Army Base, the EBMUD Wastewater Treatment Plant, and 

the Port of Oakland; and an elevated off ramp from eastbound 1-80 to the Army Base, 

EBMUD, and the Port. The Board previously approved a Right-of-Entry and Indemnity 

Agreement with Caltrans for a one year term in order to construct the proposed Cypress 

Replacement Project and further certified that it reviewed and considered the State of 

California's Environmental Impact Statement/Report on the 1-880 Cypress Freeway 

Replacement and determined that the proposed construction and operation will have no 

significant effect on the environment. The subject land sale has necessitated the relocation 

of the existing Port of Oakland storage yard located on Parcel 50561-1. Caltrans has 

accepted the Port's counteroffer for a total compensation of $3,150,000.00 based on current 

Port Tariff of $8.50 per square foot of land value. It was recommended that the Board 

approve the sale and conveyance of the Port property to Caltrans for the 1-80/880 project 

and authorize the Executive Director to sign the required conveyance documents. The 


Recommended Approval of Agreement to Extend Right-of-Entry and Indemnity 


- 13 -

Agreement - MCP Industries, Inc. was the subject of a memo to the Board from the 

Director of Commercial Real Estate recommending approval to extend the Right-of-Entry 

and Indemnity Agreement with MCP Industries, Inc., for approximately 23,625 square feet 

of vacant land adjacent to Port Building K-108, at 201 Hegenberger, at $1,250.00 per month, 

effective June 30, 1994 to September 12, 1994. The recommendation was approved on 


Approval of Month-to-Month Agreements with Syufy Enterprises, A-1 Rental Car, 

and The Women's Touch Gift Shop on the Port Property Located at 455 Hegenberger Road 


notifying the Board that as a result of the recent court action involving the Oakland Airport 

Hotel Corporation in the Airport Business Park, it is proposed that the three existing 

subtenants be allowed to continue their occupancy of the premises on a month-to-month 

basis but otherwise under the same terms and conditions of the sublease between the 

tenants and the Hotel. It was recommended that the Board authorize the following 

agreements with Syufy Enterprises - $1,349.99 minimum rent per month against various 

percentages; A-1 Rental Car - $200.00 per month; and Women's Touch Gift Shop - $150.00 

per month. The recommendation was approved on passage of Resolution No. 94309. 

Recommended Approval of Agreement to Extend Right-of-Entry and Indemnity 

Agreement - Pacific Bell was the subject of a memo to the Board from the Director of 

Commercial Real Estate recommending approval to extend Right-of-Entry and Indemnity 

Agreement with Pacific Bell, for 2.892 acres of land, at 295 Hegenberger Road at no rent, 

effective July 30, 1994 to September 12, 1994. The Right-of-Entry extension required to 

allow Permittee, Pacific Bell, to complete the site inspection in order to prepare a written 

work plan for an environmental site investigation. The recommendation was approved on 


Approval to Negotiate a Contract for a Fourth Post-Panamax Crane for Seventh 

Street Terminal was the subject of a memo to the Board from the Deputy Executive 


- 14 -

Director notifying the Board of the requirement to have a fourth post-panamax crane at the 

Seventh Street Terminal which is essential to improve operations at the Terminal and will 

help in attracting additional cargo. At present, the Port has three post-panamax cranes and 

one smaller crane at Berths 35/37 at the Seventh Street Marine Container Terminal that 

are used to serve three shipping lines. Two of the shipping lines have post-panamax vessels 

that call at the same time resulting in one vessel being served by two post-panamax cranes 

while the other vessel is served by only one post-panamax crane and one smaller crane. The 

crane service to the second post-panamax vessel is very inefficient and hamstrings operations 

due to slow movement of containers. In addition, Evergreen Lines will begin calling at the 

terminal with post-panamax vessels in August, 1996. Cranes used at the Seventh Street 

Terminal are currently restricted to 132 feet in overall height due to the proximity to the 

Alameda Naval Air Station. Given the planned closure of the facility and the resulting 

future elimination of the height restrictions, it is desirable to pursue two alternates in 

purchasing a new crane for the facility. Alternate 1 is to purchase another post-panamax 

low-profile crane which meets the current height restrictions but which is also more 

expensive both to purchase and to maintain. Alternate 2 is to purchase a standard post- 

panamax crane which is cheaper both to purchase and to maintain but which cannot be 

located at this facility until the height restrictions have been removed. Also under Alternate 

2, the Port may wish to include an option for a second new post-panamax crane at such time 

as needed and financing dictate. Negotiations with the FAA and the U.S. Navy are 

underway now with regard to the future of the height restrictions. The two crane purchase 

alternates include: For Alternate 1 - Low-Profile Crane at an appropriate cost of 

$7,000,000.00. The design drawings and specifications were developed by Kocks Crane and 

Marine Company (KCMC) to build the three low profile post-panamax cranes they supplied 

for the Seventh Street Terminal. The Port acquired the right to use those design documents 

to build a fourth crane under a change order approved by the Board at its meeting of 

February 7, 1989. This will save the Port an estimated $1,000,000.00 in engineering design 

August 9, 1994 - 15 -

costs which would be required to develop a new low profile post-panamax crane design. In 

addition, there is a real advantage from a maintenance and operating point to have the 

crane be similar to the three existing KCMC cranes. Under the terms of the 1989 change 

order, KCMC must be retained as the Port's consultants for the construction of the fourth 

crane. The estimated consulting fees for providing plans and specifications, as well as field 

inspection to monitor quality control during fabrication and to witness erection and testing 

is $950,000.00. Under the proposed agreement with KCMC, the maximum payment that can 

be made is $970,000.00 unless certain additional work is authorized by the Executive 

Director, in which case the maximum payment could be increased to $1,210,000.00. By 

employing KCMC as the Port's consultant and quality control manager, it will not be 

necessary for the Port to hire other engineering consultants and an on-site inspection agency. 

KCMC is a subsidiary of V ulkan Kocks GMBH (VK) of Germany. VK's engineers designed 

the crane. The services of VK's engineers and their sub-consultant, Liftech, will be needed 

to redesign the boom which will be extended to handle containers stacked 18 abreast, if 

feasible, and assemble the drawings and specifications needed by October 1, 1994. The 

plans and specifications are needed by that date for interested manufacturers to develop 

proposal prices by November 1, 1994. Liftech needs to start redesign of the boom by 

August 15, 1994 to meet the schedule which does not allow enough time to complete 

negotiations and finalize a contract for all of VK's engineering services that will be needed. 

To meet the schedule, it is proposed that there be a separate agreement with KCMC for this 

work. For Alternate 2 - Standard Post-Panamax Crane, if the height limit for the Seventh 

Street Marine Container Terminal can be raised from 132 feet to 205, it can be used for a 

standard crane with an articulated boom. Sixteen months is the minimum time that should 

be allowed for delivery of a standard crane, so a decision on whether to buy a standard 

crane or a low profile crane needs to be made by mid-September, 1994, in order to allow 

time for preparing specifications, requesting proposals, evaluating proposals, and awarding 

a contract calling for crane delivery by June 1996. It was recommended that the Board 

August 9, 1994 - 16

program, the Port will provide publicized tours of the Naval Supply Center in coordination 

with the Navy; phase the demolition of buildings and structures; consider preservation of a 

"barracks" building or administration building if such preservation is feasible; record 

buildings to NABS standards prior to demolition; and submit a grant application, through 

the Navy, for the Department of Defense "Legacy Grant" program, in the amount of 

$150,000.00 to produce a documentary video, interpretive exhibits and other means for 

preserving and documenting the history of the Naval Supply Center and its impact on 

Oakland and World War II. If "Legacy" funds are not granted within two years from the 

date of the agreement, the Port will provide the resources up to a limit of $55,000.00 to 

develop the above program. It was recommended that the Board authorize the Executive 

Director to enter into any necessary agreements with the City of Oakland to adopt and 

implement the Oakland Landmarks Preservation Advisory Board plan for a program to 

mitigate impacts to the potential historic district at the Naval Supply Center and to submit 

a grant application for $150,000.00 under the Department of Defense Legacy Grant program 

or commit such Port resources up to $55,000.00 if said grant is not awarded within two years 

of application to fund certain mitigation measures. The recommendation was approved on 


Tariff 2-A Modifications Pertaining to: a) Increased Dockage Rates: b) Increased 

Wharf Demurrage & Storage: and c) Extended Free Time for Coffee Shipments was the 

subject of a memo to the Board from the Director of Maritime recommending approval to 

increase dockage rates by 2.5%, effective October 15, 1994; increase Wharf Demurrage and 

Storage by 7%, effective October 15, 1994; and extend the Free Time Allowed for Coffee, 

in Bulk, in Linerbags, shipped in 20 foot containers, by 10 days, effective September 15, 

1994. The recommendation was approved on passage of an ordinance to print. 

Individual Terminal Use Agreements with Italian Line and d'Amico Line was the 


Italian Line and d'Amico Line maintain cargo service in the trade between the U.S. West 

August 9, 1994 - 18 -

Coast and the Mediterranean. Vessel and cargo operations were previously conducted 

under a single Terminal Use Agreement with the lines calling at Howard Terminal. In early 

1992 both lines requested and the Board approved that Italian Line assume the then existing 

TUA and that a separate TUA be executed with d'Amico Line with the same compensation 

terms and conditions. The existing agreements expire on September 30, 1994. It was 

recommended that the Board approve a 10% discount from the prevailing Port tariff 

dockage charges at the time of vessel activity; and a 10% discount from the prevailing Port 

tariff wharfage rates at the time of cargo activity at the terminal. Additionally, to the extent 

each line, during any contract year, generates in excess of 35,000 revenue tons per acre of 

container yard assigned, then each line will have returned by the Port to the extent collected 

by the Port, tariff wharfage revenues for all revenue tons in excess of 35,000 revenue tons 

per acre multiplied by the assigned acreage. The recommendation was approved on passage 

of an ordinance to print for each line. 

Plans and Specifications for Construction of Gate Complex and 7th Street 

Modifications, Seventh Street Terminal was the subject of a memo to the Board from the 

Deputy Executive Director recommending their approval and authority to advertise for bids 

for the construction of the entrance to the Seventh Street Container Terminal and a portion 

of Seventh Street just east of the entrance to Berth 40. The work includes demolishing 

existing pavement, curb and gutter, fencing, clerk booths, guard posts and foundations; 

furnishing and installing two truck scales, signage, camera bridge, clerk booths, guard house, 

a pre-engineered sign bridge; relocating two existing truck scales; constructing pavement, 

curb and gutter, striping, and lighting system. The project is categorically exempt and does 

not require the preparation of an environmental document. The recommendation was 



Resources recommended the appointment of Sheila D. Nasario, as Telephone Operator, 

effective August 15, 1994, at $2,564.00 per month. Also recommended was the creation of 

August 9, 1994 - 19 -

one classification of "Airport General Manager"; one position of "Media Relations 

Manager"; and one position of "Port Video/Multimedia Specialist." Further recommended 

was the creation of salary schedule and assignment of salary schedule 25926 to the proposed 

classification of "Port Video/Multimedia Specialist"; and the job specification for the 

position of "Port Video/Multimedia Specialist." Additionally recommended was a leave of 

absence for Doris J. Craig, Commercial Representative III-A, for medical reasons, for 60 

working days through September 6, 1994; and Armando G. Curiel, Power Equipment 

Operator, for medical reasons, for 67 working days through September 6, 1994. The 

recommendations were approved on passage of Resolution No. 94325 for appointment; 

Resolution No. 94326 for job specification; Resolution No. 94327 for leaves of absence; and 

on an ordinance to print for creation of position and salary schedule. 

Authorization to Purchase 72 Computer Workstations and Related Peripheral 

Equipment Identified Within the Management Information Services Long Range Plan was 

the subject of a memo to the Board from the Director of Finance notifying the Board of the 

comprehensive office automation system and that the current portion of the long range plan 

calls for the purchase and installation of approximately 72 new computer workstations 

during the fiscal year. The purchases under this program were included in the current 1994- 

95 Fiscal Year Capital Award Budget and is expected to cost $239,000.00. It was 

recommended that the Board find it to be in the best interests of the Port to proceed with 

informal quotations for the purchase of 72 computer workstations and related equipment 

through open market procurement and that the Executive Director be authorized to make 

this purchase. The recommendation was approved on passage of Resolution No. 94316. 

Approval of Annual Contract, Architectural Services for Small Projects Throughout 

the Port was the subject of a memo to the Board from the Deputy Executive Director 

notifying the Board that the Port has only occasional need for architectural services not 

related to major projects and does not hire staff for this purpose. It is more effective to 

provide a consultant agreement for on-call architectural services to fill this need. The Port 


- 20 -

has received proposals, and it was recommended that the firm of Hansen/Murakami/ 

Eshima, Inc. be retained to perform requested architectural services in the future. Basic 

terms of the contract include: a maximum of $300,000.00 in services may be provided under 

the proposed contract; each assignment would be individually authorized and subject to a 

maximum compensation; as compensation for their work, the consultant would be 

reimbursed for the direct salaries of personnel performing work on the project, fringe 

benefits, overhead costs, profit and other direct costs required to do the work; and the 

agreement would be effective when signed by the Port for a period of one year with options 

to extend for two additional one year periods upon written approval of the Executive 

Director. The recommendation was approved on passage of Resolution No. 94317. 

Approval for Fee increases for the Port's Employee Assistance Program was the 

subject of a memo to the Board from the Director of Human Resources notifying the Board 

that effective July 1, 1994, the monthly premium rates for the Port's Employee Assistance 

Program's managed benefit plan group enrollment agreement, administered through U.S. 

Behavioral Health Plan, increased from $13.41 to $14.42 per subscriber, for a 7.5% increase 

over a two year period. It was recommended that the Board approve the increases as 

presented by U.S. Behavioral Health Plan. The recommendation was approved on passage 


Potomac Insurance Renewal was the subject of a memo to the Board from the 

Director of Human Resources recommending approval to renew the Potomac's Hull & 

Liability Policy for an annual premium of approximately $52,250.00. The quotation is from 

Passenger Vessel Association and has a limit of $6,000,000.00 for hull and machinery; 

$1,000,000.00 for protection and indemnity; and a $100,000.00 deductible. The 



- 21 -

vote: 



Noes: None 

Absent: None 



CERTIFYING CONSIDERATION OF AND APPROVING AND ADOPTING 

INITIAL STUDY AND MITIGA'T'ED NEGATIVE DECLARATION FOR 

PROPOSED CHEVRON CORPORATE HANGAR FACILITY, NORTH FIELD, 

OAKLAND, CALIFORNIA, AND MAKING CERTAIN FINDINGS AND 

DETERMINATIONS IN CONNECTION THEREWITH." 


GRANTING LYONTREE EQUITY EXCHANGE, INC. PERMISSION TO 



WAIVING COMPETITIVE BIDDING FOR CERTAIN PORT IMPROVEMENTS 

TO BE CONSTRUCTED IN CONNECTION WITH THE CHEVRON U.S.A. INC. 

LEASE; APPROVING A SUBLEASE OF SAID LEASE AND GRANTS OF 

EASEMENT BETWEEN CHEVRON U.S.A. INC. AND THE PORT TO 

LYONTREE EQUITY EXCHANGE, INC.; APPROVING CERTAIN OTHER 

ASSIGNMENTS AND SUBLEASES IN CONNECTION THEREWITH; 

APPROVING TWO LICENSE AND CONCESSION AGREEMENTS WITH 

LYONTREE EQUITY EXCHANGE, INC. AND THE SUBSEQUENT 

AMENDMENT THEREOF; AND AUTHORIZING THE EXECUTIVE 

DIRECTOR TO TAKE SUCH OTHER ACTIONS AS MAY BE NECESSARY TO 

EFFECTUATE A TAX-DEFERRED EXCHANGE IN CONNECTION WITH 

SAID LEASE AND TO ACCOMPLISH SAID ASSIGNMENTS AND 

SUBLEASES." 


AUTHORIZING AN APPLICATION TO BE FILED WITH THE FEDERAL 

AVIATION ADMINISTRATION FOR APPROVAL TO COLLECT AND USE 

PASSENGER FACILITY CHARGES AT THE METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT." 


AUTHORIZING REQUEST FOR PROPOSALS FOR MANAGEMENT OF THE 

PUBLIC PARKING FACILITIES AT METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT." 

August 9, 1994 - 22 -


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN THIRD 

SUPPLEMENTAL AGREEMENT WITH DOLLAR SYSTEMS, INC." 



AND CONCESSION AGREEMENT WITH AIR GENERAL, INC." 


AWARDING CONTRACT TO MEDDCO METALS, FOR CONSTRUC I ION OF 

ENTRANCE VESTIBULE AT TERMINAL II - BUILDING M-130, SOUTH 

FIELD, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 



AND DIRECTING RETURN OF BID BONDS TO BIDDER." 


APPROVING AGREEMENT WITH REDEVELOPMENT AGENCY OF THE 

CITY OF OAKLAND FOR REIMBURSABLE CONTRIBUTION BY AGENCY 

FOR ENTERTAINMENT IN JACK LONDON SQUARE." 


APPROVING FIRST SUPPLEMENTAL AGREEMENT TO PARKING 

STRUCTURE RUCTURE A RETAIL LEASE WITH OAKLAND PORTSIDE ASSOCIATES." 


APPROVING PORTS LEASE FROM PACIFIC GAS AND ELECTRIC 

COMPANY OF SITE AT CORNER OF EMBARCADERO AND CLAY 

S I REETS." 



ABM ENGINEERING SERVICES, INC. TO PROVIDE TEMPORARY 

EMPLOYEE AND PAYROLL SERVICES FOR THE OPERATION OF PORT 

PROPERTY AT 455 HEGENBERGER ROAD UNDER THE DIRECTION AND 

SUPERVISION OF L. JOSEPH BOSS CONSTITUTES AN AGREEMENT FOR 




FINDING AND DETERMINING THAT A PROPOSED AGREEMENT WITH L. 

JOSEPH BOSS FOR THE PROVISION OF THE HOTEL MANAGEMENT AND 

OPERATION SERVICES CONSTITUTES AN AGREEMENT FOR 




- 23 -


AUTHORIZING EXECUTION OF AN AGREEMENT WITH EAST BAY 

MUNICIPAL UTILITY DISTRICT (EBMUD) FOR REPLACING WA IER MAIN 

AT AMTRAK STATION PROJECT' SITE." 



TO EXTEND RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT ("ROE 

EXTENSION AGREEMENT') WITH MCP INDUSTRIES, INC." 


AUTHORIZING AND APPROVING OF MONTH-TO-MONTH AGREEMENTS 

WITH SYUFY ENTERPRISES, A-1 RENTAL CAR, AND THE WOMEN'S 

TOUCH GIFT SHOP COVERING PORTIONS OF PORT PROPERTY 

LOCATED AT 455 HEGENBERGER ROAD, OAKLAND." 

"RESOLU 110N NO. 94310 


TO EXTEND RIGHT OF ENTRY AND INDEMNITY AGREEMENT ("ROE 

EXTENSION AGREEMENT') WITH PACIFIC BELL." 



THE PORT TO PROCURE A FOURTH POST-PANAMAX CRANE AT 

SEVENTH STREET MARINE CONTAINER 'TERMINAL, WITHOUT 

COMPETITIVE :BIDDING AND AUTHORIZING THE PROCUREMENT 

THEREOF." 



KOCKS CRANE AND MARINE CORPORATION FOR ENGINEERING 






KOCKS CRANE AND MARINE CORPORATION FOR ENGINEERING 

CONSULTING SERVICES CONSTITUTES PROFESSIONALOR SPECIALIZED 




APPROVING PROGRAM TO MITIGATE IMPACTS TO HISTORIC DISTRICT 

AT NAVAL SUPPLY CENTER OAKLAND." 


- 24 -



GATE COMPLEX AND 7TH STREET MODIFICATIONS, SEVENTH STREET 

I ERMINAL, OAKLAND, CALIFORNIA; AND CALLING FOR BIDS 




THE PORT TO PROCURE SEVENTY-TWO COMPUTER WORKSTATIONS 

AND RELATED PERIPHERAL EQUIPMENT WITHOUT COMPETWVE 

BIDDING AND AUTHORIZING PROCUREMENT OF SAME ON THE OPEN 

MARKET." 



HANSEN/MURAKAMMESHIMA, INC. FOR ARCM l'ECTURAL CONSULTING 





RATIFYING INCREASE IN MONTHLY PREMIUM RA'Z'ES UNDER 

AGREEMENT WITH U.S. BEHAVIORAL HEALTH PLAN FOR EMPLOYEE 

ASSISTANCE PROGRAM AND CHEMICAL DEPENDENCY BENEFIT PLAN 

SERVICES EFFECTIVE FOR THE PERIOD FROM JULY 1, 1994, TO JUNE 30, 

1996." 


AUTHORIZING RENEWAL OF POTOMAC INSURANCE." 


GRANTING KEN BEGUN PERMISSION TO PERFORM CERTAIN WORK." 


GRANTING DOLLAR SYSTEMS, INC. PERMISSION TO PERFORM CERTAIN 

WORK." 


GRANTING BEVERAGES AND MORE!, INC. PERMISSION TO PERFORM 



GRANTING OAKLAND EXECUTIVE CENTER PERMISSION TO PERFORM 



- 25 -


GRANTING FEDERAL EXPRESS CORPORATION PERMISSION TO 



vote: 

AUTHORIZING COMPROMISE AND SE'l 1LEMENT OF LITIGATION 

RELATING TO PORT OF OAKLAND DISTRIBUTION CENTER AND 

METROPOLITAN OAKLAND INTERNATIONAL AIRPORT. 





Absent: None 


APPOINTING SHEILA D. NASARIO TO THE POSITION OF'TELEPHONE 

OPERATOR." 


APPROVING JOB SPECIFICATION FOR THE POSITION OF PORT 

VIDEO/MULTIMEDIA SPECIALIST." 




AUTHORIZING THE EXECUTION OF LEASE AND GRANT OF EASEMENTS WITH 

CHEVRON U.S.A. INC," and Port Ordinance No. 3225 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING THE SALE OF A 9.49-ACRE PARCEL LOCA 1 ED 

IN THE OAKLAND AIRPORT BUSINESS PARK TO OAKLAND EXECUTIVE 

CENTER, APPROVING AND AUTHORIZING THE EXECUTION OF AN 

AGREEMENT THEREFOR, AND MAKING CERTAIN FINDINGS AND 

DE TERMINATIONS IN CONNECTION THEREWITH," and Port Ordinance No. 3226 

being, "AN ORDINANCE APPROVING AND AUTHORIZING EXECUTION OF 


- 26 -

LEASE WITH DEALEY, RENTON & ASSOCIATES INSURANCE BROKERS AND 

DIRECTING RECORDATION THEREOF," and Port Ordinance No. 3227 being, "AN 

ORDINANCE AUTHORIZING THE EXECUTION OF TERMINAL USE 

AGREEMENT WITH EVERGREEN MARINE CORP. (TAIWAN) LTD.," were read a 

second time and passed by the following vote: 


Noes: None 

Absent: None 


Port Ordinance No. being, "AN ORDINANCE APPROVING LEASE OPTION 

AGREEMENT WITH DOW-PAC PROPERTIES FOR DEVELOPMENT OF MOVIE 

THEATER SITE IN JACK LONDON SQUARE," and Port Ordinance No. being, 

"AN ORDINANCE APPROVING AND AUTHORIZING EXECUTION OF REAL 

ESTATE PURCHASE AND SALE AGREEMENT FOR SALE TO AMB PROPERTIES, 

L.P. OR ITS ASSIGNEE OF CERTAIN REAL PROPERTY LOCATED AT THE 

NORTHWESTERLY CORNER OF KENNEDY STREET AND EMBARCADERO 

STREET AND CERTIFYING CONSIDERATION OF INITIAL STUDY AND 

MITIGATED NEGATIVE DECLARATION FOR THE COUNTY HOUSEHOLD 

HAZARDOUS WASTE COLLECTION AND TRANSFER FACILITY ("PROJECT), 

FINDING NO SUBSTANTIAL EVIDENCE OF SIGNIFICANT EFFECT ON THE 

ENVIRONMENT, APPROVING THE MITIGATED NEGATIVE DECLARATION AND 

APPROVING THE PROJECT," and Port Ordinance No. being, "AN ORDINANCE 

APPROVING AND AUTHORIZING EXECUTION OF RIGHT OF WAY CONTRACT 

FOR SALE TO STATE OF CALIFORNIA OF FEE EASEMENTS IN CERTAIN REAL 

PROPERTY LOCATED SOUTH OF BAY BRIDGE TOLL PLAZA," and Port Ordinance 

No. being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 2833 

RELATING TO WHARF DEMURRAGE AND STORAGE RULES AND RAI ES AND 

August 9, 1994 - 27 -

DOCKAGE," and Port Ordinance No. being, "AN ORDINANCE AUTHORIZING 

THE EXECUTION OF TERMINAL USE AGREEMENT WITH D'AMICO SCIETA di 

NAVIGAZIONE per AZIONI," and Port Ordinance No. being, "AN ORDINANCE 


ITALIA S.P.A. di NAVIGAZIONE," were read a first time and passed to print by the 



Noes: None 

Absent: None 



ORDINANCE NO. 867 TO CREATE NEW SALARY SCHEDULE NO. 259.26, TO 

RETITLE THE POSITION OF AIRPORT MANAGER AND TO CREATE NEW 

POSITIONS OF MEDIA RELATIONS MANAGER AND PORT VIDEO/MULTIMEDIA 

SPECIALIST," was read a first time and passed to print by the following vote: 




Absent: None 


entering into a conference with Labor Negotiators - Agency Negotiator: I.E.D.A. - 

Employee Organization: Local 790; a conference with Legal Counsel - Existing Litigation, 

pursuant to subdivision (a) of Government Code Section 54956.9. Name of cases: Golden 

Gate Audubon Society v. Port of Oakland, Alameda County Superior Court Case No. 

615843.9; People v. Marsh, U.S. District Court, N.D. Calif., C-86-5817-RHS and C-86-6023- 

RHS; Sierra Club v. Port of Oakland, Alameda County Superior Court Case No. 618105-5, 

and Golden Gate Audubon Society v. United States Army Corps of Engineers, U.S. District 

August 9, 1994 - 28 -

Court, N.D. Calif., No. C-87-6063-1EH; and a conference with Legal Counsel - Anticipated 

Litigation, initiation of litigation pursuant to subdivision (c) of Government Code Section 

54956.9: 1 case. 

At the hour of 5:25 p.m., the Board reconvened in open session. 

Mr. Robert Mayman and Mr. Charles Nob, representing the Ramada Hotel and the 

owner, Mr. Charles Lee, appeared before the Board to inform the Board that the 

Bankruptcy Court had returned the hotel to the Port and Mr. Noh, the present manager, 

asked that he be allowed to manage the facility under the direction of Mr. Lee for at least 

two more months. The Board took no action on their request. 

seconded. 



67.7' 


- 29 -




The regular meeting scheduled for Tuesday, Auguest 16, 1994, at the hour of 3:00 

p.m., was adjourned by the Secretary of the Board due to absence of all the members of the 

Board, as scheduled for summer recess, with the notation that the next meeting of the Board 

would be held on September 6, 1994. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The regular meeting scheduled for September 6, 1994, was adjourned by the 

Secretary of the Board to 3:00 p.m., September 13, 1994, in the office of the Board, second 

floor, 530 Water Street, Oakland, California, due to the absence of all the members of the 

Board. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The adjourned regular meeting was held on Tuesday, September 13, 1994, at the hour 




received the Port's Annual Equal Opportunity Report. 

Commissioners present: Broussard, Kramer, Loh, Ortiz, 


Commissioners absent: Commissioners Cole and Vohs - 2 


Assistant Port Attorney Thomas Clark; Director of Commercial Real Estate; Director of 

Human Resources; Director of Aviation; Director of Engineering; Director of Maritime; 

Director of Communications; Director of Policy and Strategic Planning; Director of Finance; 

Director of Equal Opportunity; Chief Engineer; Media Relations Manager; and Secretary 

of the Board.

The minutes of the regular meeting of August 2, 1994; and the adjourned regular 

meeting of August 9, 1994 were approved as submitted and ordered filed. 

Commissioner Kramer, member of the Human Resources Committee, informed the 






Commissioner Broussard, Chair of the Maritime Committee, informed the Board that 


Agreement for Interim Operator to Manage Airport Parking Facility was the subject 

of a memo to the Board from the Director of Aviation notifying the Board that the present 

operators, West Coast Parking Company, has decided to exercise their option in the 

Agreement to give the Port a sixty day termination notice effective midnight, September 30, 

1994. The Port has initiated the Request for Proposals (RFP) for a new management 

Agreement which process will not be completed until later in the year. Proposals were 

received to provide interim management, and it was recommended that the Board authorize 

an Agreement with APCOA Parking to manage the Airport Parking facilities on an interim 

basis not to exceed ninety day commencing midnight, September 30, 1994. APCOA's 

proposal is cost effective since their proposed management fee is the same as what it 

currently being paid to West Coast Parking Company and their proposed start-up costs are 

nominal. APCOA Parking currently manages over 75 airports in the United States and 

Canada combined, and manages 20 airport parking operations in the Western United States. 


Engineering Design Services for Construction of Passenger Corridor Connecting 

Terminal 1 and Terminal 2, South Airport was the subject of a memo to the Board from 

the Director of Engineering notifying the Board that Southwest Airlines has asked for 

September 13, 1994 - 2 -

additional gates at Oakland International Airport and they have requested that the new 

gates be available by June 30, 1995. With the addition of Gate 26A to Terminal 2, the Port 

has exhausted the possibilities for adding gates to this high passenger volume terminal 

building. Terminal 1 has gates available now to meet Southwest's growing demand if the 

gates can be accessed through Terminal 2, since all of Southwest's ticketing and baggage 

claim operations are located in that terminal. A connector between the two buildings is 

needed to provide long-teiiii flexibility and balance to the usage of the two buildings. The 

Terminal 1 Ramps Reconstruction project will reconstruct portions of Terminal 1 adjacent 

to Gate 4, and coordination of that project with the proposed connector project is needed 

to minimize reconstruction in this area. It was recommended that the Board authorize an 

engineering design service contract with Hratch Kouyoumdjian & Associates for engineering 

design services for the connector project. Hratch Kouyoumdjian & Associates, the 

consultant for the Terminal 1 project, prepared the preliminary feasibility study for the 

connector as a necessary part of the Ramps Reconstruction project. As compensation for 

its services, the firm will be paid for the actual costs of doing the work at negotiated current 

billin g rates which include direct salaries, overhead and profit. The maximum payment that 

can be made under the proposed agreement is $520,000.00, with up to $130,000.00 of 

additional work available at the discretion of the Executive Director. The recommendation 


Approval of Contract with The Service Institute as Primary Customer Service 

Trainer at Oakland International Airport was the subject of a memo to the Board from the 

Director of Aviation notifying the Board of the project to improve upon the service 

environment of the Oakland International Airport by providing on-going customer service 

training and an incentive program for front-line Airport service staff. A Request for 

Qualifications was distributed and nine responses were received. It was recommended that 

the Board approve the preparation and execution of a contract with The Service Institute 

for the training work. The Service Institute has developed and implemented programs for 

September 13, 1994 

- 3 -

airports and municipalities in the USA, Canada and the Caribbean over the past ten years. 

The program has been successful in all three New York City/New Jersey airports as well 

as Seattle, Miami, Atlanta and recently Ft. Lauderdale. The contract calls for a three year 

program with a total contract amount of $250,000.00, a 5% contingency and a thirty day 

escape clause. The recommendation was approved on passage of Resolution No. 94331. 

Approval of New License and Concession Agreement with Existing Tenant. John 

Eelsing and Laurence Perry was the subject of a memo to the Board from the Director of 

Aviation recommending approval to renew their agreement for 2,243 square feet of 

automobile storage space in Building L-160, North Airport, at $672.90 per month, effective 

January 1, 1993. The recommendation was approved on passage of Resolution No. 94332. 

Approval of New License and Concession Agreement with Southwest Airlines Co. 

was the subject of a memo to the Board from the Director of Aviation recommending 

approval of a new agreement for 1,980 square feet of office space between column lines 9 

and 12 in the vicinity of Gate 11 and 1,795 square feet of office space between column lines 

4 and 8 in the vicinity of Gates 10 and 12, at $20,637.93 per month, effective October 1, 

1994. It was noted that the space will be used as a crew base. The recommendation was 



of One Year or Less with John Eelsing and Laurence Perry, Blaine R. Banks, George L. 

Fawkner, Patrick Media Group. Inc. Seattle Seahawks, Inc.. and Louis B. Fields and Joseph 

H. Fields II (North Airport) was the subject of a memo to the Board from the Director of 

Aviation recommending approval to renew the agreements for John Eelsing and Laurence 

Perry, for 2,243 square feet of automobile storage space in Building L-160, North Airport, 

at $672.90 per month, effective January 1, 1994; Blaine R. Banks, 79 square feet of office 

space and 188 square feet of storage space all located in Building L-142, North Airport, at 

$220.16 per month, effective August 1, 1994; George L. Fawkner, 724 square feet of storage 

space in Building L-731, North Airport, at $184.19 per month, effective August 1, 1994; 


4

Patrick Media Group, Inc., 15 square feet of unpaved land beneath two signs on Doolittle 

Drive between Swan Way and Langley, at $105.04 per month, effective August 1, 1994; 

Seattle Seahawks, Inc., 1,773 square feet of office space and 960 square feet of paved land 

located in and adjacent to Building L-606 and 12,600 square feet of apron space and 1,440 

square feet of paved land located adjacent to Building L-820, North Airport, at $1,722.00 

per month, effective August 1, 1994; and Louis B. Fields and Joseph H. Fields II, 9,600 

square feet of hangar, 4,862 square feet of unpaved land, 35,090 square feet of apron and 

2,041 square feet of parking lot all located in and adjacent to Building L-908, North Airport, 

at $3,384.60 per month, effective May 1, 1994. The recommendation was approved on 


Approval of Supplement to Agreement with Smarte Carte, Inc. was the subject of 

a memo to the Board from the Director of Aviation recommending approval of a 

supplemental agreement which will exclude the retained $.25 retrieval rewards from gross 

receipts on which Smarte Carte, Inc. pays the Port 10% rent. The Airport is experiencing 

problems with local persons attracted to the Airport by the $.25 retrieval reward, and these 

persons are approaching Airport customers attempting to rent them carts. In addition to 

diverting revenue from Smarte Carte and the Port, these practices cause the Oakland Police 

Department's Airport detail concern for the Airport customers' safety. Other airports have 

discontinued the $.25 retrieval reward due to similar concerns. The retained $.25 retrieval 

rewards will generate approximately $44,000.00 in additional gross receipts; however, Smarte 

Carte indicates that the added gross receipts will be more than off-set by the additional cart 

retrieval labor costs. Smarte Carte requests that the $.25 retained retrieval rewards be 

deducted from its gross receipts to off-set this increased operational cost. The 


September 13, 1994 - 5 -

Approval of Third Supplemental Agreement with Alamo Rent A Car. Inc. was the 

subject of a memo to the Board from the Director of Aviation notifying the Board that 

Alamo Rent A Car, Inc. is one of six airport rental car licensees that share the Ready Car 

Lot in the Airport Parking Lot. Parking Lot space between and adjacent to the Ready Car 

Lot and Airport Drive is available to those licensees that wish to install larger customer 

service booths and use of this space for booths will maximize use of available space and 

improve customer service. Alamo is now requesting the use of a booth, and it was 

recommended that the Board approve the Third Supplemental Agreement providing for 405 

square feet of land adjacent to the Ready Car Lot and Airport Drive, to install and operate 

a customer service booth. The monthly rent is $82.82. The recommendation was approved 


Approval of Building Permit Application for Southwest Airlines Compan y. Tenant 

Improvements, 1 Airport Drive. Building M-103 was the subject of a memo to the Board 

from the Director of Engineering recommending approval for the construction of interior 

improvements in the ground floor space of Terminal 1 which will serve as a crew base for 

the airline's flight staff. The work will include construction of new fire rated walls to realign 

the walls of the central corridor to provide the required tenant space; construction of 

interior partition walls; installation of lighting and mechanical systems; installation of finish 

ceiling. flooring and wall surfacing; and installation of signage and signals as necessary. The 

estimated cost of the proposed work is $190,000.00. The project is categorically exempt and 

does not require the preparation of an environmental document. The recommendation was 


Notice of Termination of Power Sale Agreement with PG&E for Power at MOIA was 

the subject of a memo to the Board from the Director of Engineering notifying the Board 

of the Power Sale Agreement with PG&E to purchase electric power for the airport utility 

system at wholesale rates. The agreement contained a provision giving PG&E the right to 

apply to the Federal Energy Regulatory Commission for an increase in the rates under 

September 13, 1994 6

FERC rules and regulations, provided that such rate increase would not become effective 

before January 1, 1990. In April 1990, an amendment to the original agreement was signed 

that was to remain in effect at least until December 31, 1992 and to continue indefinitely 

thereafter subject to each party's right to terminate the contract upon at least one year's 

prior notice. The agreement, as amended, is still in effect. Under the terms of this 

agreement, the rates for power were raised about 30%. The Port presently pays 

$3,500,000.00 a year for power at the airport. Negotiations are now being held with PG&E 

on the proposed terms of a new agreement. PG&E is aware that the Port has taken steps 

to investigate other sources of power and, as a result, the rates under any proposed new 

agreement with PG&E are expected to be 20% to 25% lower than the present rates. 

Negotiations are concurrently being held with other potential suppliers of electric power and 

indications are that they can supply power at substantially better rates than those recently 

offered by PG&E. It was recommended that the Port give PG&E a contract termination 

notice at this time so that the one year prior notice period will begin now and thereby speed 

the process of changing over to another supplier if a rate cheaper than that offered by 

PG&E is available. It was noted that at the Board meeting of April 19, 1994, the Board 

authorized the Executive Director on behalf of the Port to apply for membership in the 

Northern California Power Agency (NCPA), and on September 21, 1994, their commission 

will consider the Port's application. The recommendation was approved on passage of 


Approval of Change Order for Construction of Airfield Signage, MOIA was the 

subject of a memo to the Board from the Director of Engineering notifying the Board of the 

contract with Rosendin Electric Inc. for the Construction of Airfield Signage which became 

effective on October 27, 1993. The sign construction work was completed on May 4, 1994. 

On May 27, 1994 and July 25, 1994, the Federal Aviation Administration requested, during 

two air-port inspections, that seven signs constructed by Rosendin Electric Inc. be relocated 

and modified to comply with a new FAA Advisory Circular 18C. The new FAA 


- 7 -

equirements were still under development when the Port finished the design and received 

FAA approval of the contract plans and specifications. A lump sum price of $57,000.00 and 

a contract time extension of 170 calendar days from May 4, 1994 has been negotiated with 

the Contractor to complete these FAA requested changes, and it was recommended that the 

Board approve the negotiated change order. It was noted that the proposed new total cost 

will be $911,642.00. The recommendation was approved on passage of Resolution No. 

94340. 

Amendment of Ordinance Approving Grant of Easement to Chevron U.S.A. Inc. was 

the subject of a memo to the Board from the Director of Aviation notifying the Board of 

a recent ordinance approving a ground lease with and grants of easements to Chevron 

U.S.A. Inc. for the construction and operation of a corporate hangar facility at North 

Airport. One of the easements was identified as Parcel E located between Earhart Road 

and the northern boundary of the Chevron site on the infield area between Hangars 8 and 

9. It contained approximately 19,272 square feet and allowed underground utilities and 

security-related improvements to be brought to the site. Much of Parcel E is covered with 

10 inches of concrete apron containing rebar. It has been determined that the Port could 

save about $90,000.00 in utility construction costs by moving Parcel E about 13 feet to the 

West. The cost savings result from the relocated Parcel E being presently covered by only 

5 inches of concrete containing no rebar which permits less concrete cutting cots, less 

concrete disposal costs and lower replacement costs. It was recommended that the Board 

approve the first amendment to the location of Parcel E in the grant of easement to 

Chevron U.S.A. Inc. The initial study/negative declaration for the project was previously 

approved by the Board. The recommendation was approved on passage of an ordinance to 

print. 

Concurrence with City of Alameda for the Amendment of Agreement with Ferry 

Operator to Provide for Fare Increase and Amendment to Agreement with HBIA for Ferry 

Terminal License Agreement was the subject of a memo to the Board from the Director of 


- 8 -

Commercial Real Estate notifying the Board that the Alameda/Oakland) Ferry has been in 

operation since 1989 and has been operated by a contractor under an agreement with the 

City of Alameda. The Port has an agreement with the City of Alameda which provides that 

both entities jointly subsidize the ferry as well as share administratively on an equal basis 

in the selection of the ferry operator and all other operational issues. The standard adult 

and commuter fares have not been changed since the inception of the service in 1989. The 

non-discounted adult fare is $7.00 round-trip and $3.50 one-way. Commuters have the 

option of a $25.00 10-ticket commute book which reduces the one way fare to $2.50. The 

City of Alameda, the Port and the Metropolitan Transportation Commission each subsidize 

the ferry. MTC's portion is 80%, Alameda and Oakland's share is 10% each. The new 

contract with Blue and Gold provided for a reduced subsidy which went from $724,000.00 

last year to $500,000.00 for this current year, beginning March 1994. A subsidy of 

$446,160.00 was requested from MTC. MTC has only been able to fund $429,901.00 

creating a shortfall of $16,259.00. Blue and Gold Fleet has agreed to absorb shortfall if the 

fare schedule is revised. The proposed rate increase should offset any reduction in subsidy. 

The rate increase should only affect occasional riders and is only a 3% increase overall. 

The new standard adult fare would be $7.50 round trip and $3.75 one way, with a 40-ticket 

commute book per person which reduces the one way fare to $2.25. The Port also has a 

license agreement with Harbor Bay Isle Associates, Inc., for the Harbor Bay Maritime, Inc.'s 

use of submerged Port lands for the construction of a ferry terminal dock and the 

development and operation of a ferry service from Harbor Bay Isle in the City of Alameda. 

Paragraph 17 of the license agreement provides that HBIA must charge a fee structure of 

at least $.50/passenger higher than the fare structure established by the Alameda/Oakland 

ferry. Since the Alameda/Oakland ferry is nearing its capacity to serve additional ridership, 

the provision in the HBIA agreement is no longer necessary to protect the 

Alameda/Oakland Ferry from competition and it was recommended that the agreement be 

amended to provide that HBIA ferry fares be equal to but no lower than those charged by 


- 9 -

the Alameda/Oakland ferry and that such fares shall be approved by the Port of Oakland 

and/or the Alameda/Oakland Ferry Marketing Task Force. The recommendations were 


Certification of the Movie Theatre at Jack London quare, Initial Studv/Mitigated 

Negative Declaration, Adoption of the Mitigation Monitoring and Implementation Program. 

Approval and Authorization for the Executive Director to Execute the Operational and 

Maintenance Agreement and the Covenant of Deed Restrictions and Approving Expenditure 

of Funds, and Authorization for Broker's Commis non was the subject of a memo to the 

Board from the Director of Commercial Real Estate notifying the Board of the ordinance 

approving a lease option and lease with Dow-Pac Properties for the development of a movie 

theatre in Jack London Square. In compliance with the California Environmental Quality 

Act ("CEQA"), the Port prepared a draft Initial Study to determine whether the Movie 

Theatre at Jack London Square ("the Project") would have any significant environmental 

impacts. The draft Initial Study concluded that the Project could have potentially significant 

environmental impacts. The draft Initial Study concluded that the Project could have 

potentially significant environmental impacts related to geological, biological, and 

cultural/aesthetic factors. The draft Initial Study also concluded that implementation could 

have construction-related, operations-related, and cumulative impacts. No growth-inducing 

impacts were identified. The draft Initial Study concluded that all impacts could be reduced 

to a level of insignificance, and consequently, the Port determined that an Environmental 

Impact Report was not necessary and prepared a draft Negative Declaration. The draft 

Initial Study/Negative Declaration was circulated for public review during March 25, 1994 

to April 25, 1994. Of the approximately 200 Notices of Availability and 35 draft Initial 

Studies distributed, six comment letters were received. In response to the comment letters, 

the Port revised the draft IS/ND and prepared detailed written responses during May- 

August 1994. In compliance with Section 21081.6 (Public Resources Code) the Port 

prepared a Mitigation Monitoring Program which monitors implementation of mitigation 

September 13, 1994 - 10

measures during design, construction, and operation of the Project. At its June 7, 1994 

Board meeting the Board passed a resolution authorizing the Executive Director to execute 

a Voluntary Cleanup Agreement between the Port and the Department of Toxic Substances 

Control covering, among other matters, DTSC's review and oversight of environmental 

investigation and removal activities at this site and the Port's payment to DTSC for said 

review and oversight activities for up to a maximum of $75,000.00. DISC has taken the 

position that before it will "certify" the site, DISC and the Port must enter into two 

additional agreements covering the site. An Operation and Maintenance Agreement which 

addresses future operation and maintenance of site removal activities; and a Covenant of 

Deed Restriction which would prohibit future site development of certain use including 

residential, hospital and health clinics, day-care center, and schools. The Covenant would 

restrict site uses to commercial (including, without limitation, retail) and industrial. No 

other regulatory permits than those listed are required for the Project to proceed. The Port 

staff estimates that approximately $40,000.00 of the original authorization of $75,000.00 has 

been expended to date for DTSC review. DTSC has required significantly more staff time 

to review our documents that Port staff originally anticipated and has incurred higher staff 

costs in a shorter amount of time. Up to an additional $75,000.00 may be required for 

payment to DTSC for their review and oversight of the entire project. The Port has an 

agreement for up to $70,000.00 with Baseline Environmental Consulting to prepare a 

Preliminary Endangerment Assessment for submittal to DTSC and to perform additional 

work as authorized by the Executive Director. Baseline has completed the agreed upon 

scope of work. As the project moves into construction planning and actual construction, the 

Port will require assistance in developing construction specifications, field oversight and 

documentation of all activities required by DTSC, and groundwater sampling. Due to 

Baseline's expertise and familiarity with the site, it is appropriate to enter a new contract 

with Baseline to provide the necessary services. It is proposed that Baseline be paid for the 

actual hours worked up to an agreed upon maximum. The agreed billing rates paid will 


- 11 -

cover direct salaries of personnel performing work on the project, fringe benefits, overhead 

costs, profit and other direct costs for services required for the work. The proposed 

maximum payment is $83,000.00 and an additional $17,000.00 available at the discretion of 

the Executive Director. The Port will pay a commission of $19,575.00 to Terranomics and 

1 RI upon occupancy. It was recommended that the Board certify the Initial Study/Mitigated 

Negative Declaration for the movie theatre at Jack London Square; adopt the mitigation 

measures listed on Attachment A which shall constitute the Port of Oakland's reporting or 

monitoring program under CEQA and find that the Project will have no significant effect 

on the environment because the mitigation measures will reduce potential impacts to a level 

of insignificance; find that the Initial Study/Mitigated Negative Declaration reflects the 

independent judgment of the Board; approve and authorize the Executive Director to 

execute the Operation and Maintenance Agreement and the Covenant of Deed Restrictions 

as outlined and authorize payment to DTSC up to an additional $75,000.00 for a total of 

$150,000.00; authorize payment of the broker's commission; and authorize the preparation 

and execution of an Agreement with Baseline Environmental Consulting for $100,000.00 for 

professional services. The recommendations were approved on passage of Resolution No. 

94342. 

At the hour of 4:20 p.m., Commissioner Vohs joined the meeting. 

Resolution Finding that the Illegal Mooring of a Houseboat Structure in San 

Leandro Bav Constitutes a Public Nuisance was the subject of a memo to the Board from 

the Director of Commercial Real Estate notifying the Board that a houseboat structure, 

owned by Mr. Larry Keeler, has been unlawfully moored in San Leandro Bay since the end 

of last year. The 3-story houseboat structure is considered an eyesore and a public nuisance 

due to the following: Mr. Keeler's vessel is incapable of maneuvering under its own power 

and is therefore considered inoperable and unseaworthy; the dilapidated vessel is in a badly 

deteriorated condition, and could drift away from its mooring during a strong wind, and 

possibly cause damage to shoreline improvements, and there is also a possibility that the 


- 12 -

vessel could sink; there is a significant probability that Mr. Keeler's vessel is discharging raw 

sewage, or waste matter into the waters of San Leandro Bay; and it is possible that similar 

unauthorized vessels could relocate to the area. The Port Attorney's office advises that Port 

Ordinance No. 2161 prohibits the mooring of Mr. Keeler's vessel in the Port area. 

Specifically, the houseboat is in violation of Section 3 (7) Unseaworthy Vessels, Section 3 

(9) Vessels as Adodes, Section 4(1) Sanitation, and Section 7(1) Mooring (without a permit). 

It was recommended that the Board approve a Resolution finding that the mooring of Mr. 

Keeler's vessel in San Leandro Bay constitutes a public nuisance. The recommendations 

were approved on passage of Resolution No. 94355. 

Approval A.111B Properties L.P. County H i usehold 

Hazardous Waste Facility, East 7th Street at Kennedy was the subject of a memo to the 

Board from the Director of Engineering recommending approval for the construction of a 

facility for the collection of Household Hazardous Wastes. AMB has entered into a 

purchase and sale agreement with the Port for the undeveloped site at the intersection of 

East 7th and Kennedy Streets with the intent to build the facility for the County of Alameda 

Department of Environmental Health. The facility will serve residents and small businesses 

in the north county who wish to dispose of small amounts of hazardous materials such as 

paint, solvents, and aerosols. The work will include construction of a one-story concrete 

block storage building for handling and storage of materials; construction of a one-story 

office building; construction of a small shed for storage of materials to be reused; 

installation of concrete and asphalt paving for two new curb cuts; sidewalks, curbs and 

gutters on both street frontages; and, parking and on-site circulation; installation of 

landscaping; and installation of one identification sign and on-site directional signage. The 

estimated cost of the proposed work is $950,000.00. The County of Alameda, as the Lead 

Agency under CEQA, has prepared, approved and accepted the Initial Study and adopted 

the mitigated Negative Declaration for this project. The Board approved and adopted the 


- 13 -

Initial Study/Negative Declaration at its August 9, 1994 meeting. The recommendation was 


Approval of Agreement for Professional Services with ERM-West for Remedial 

Design Services, Embarcadero Cove Superfund Site was the subject of a memo to the Board 

from the Director of Engineering notifying the Board that the Port owns property at the 

corner of Embarcadero and Dennison Streets bordered by the Brooklyn Basin on the west, 

Dennison Street on the south, Embarcadero Street on the east, and the Livingston Street 

pier area on the north. The site is currently vacant but was formerly used by a Monsanto 

Company subsidiary. On July 8, 1987, the California Department of Health Services (now 

the Department of Toxic Substances Control, or DTSC) issued Remedial Action Order 

HSA87/88002RA to the Port of Oakland and Monsanto Company as Respondents. The 

Order required the Respondents to conduct extensive characterization of hazardous 

materials at the Embarcadero Cove Site and to follow California Superfund procedures to 

remediate the site. The Port negotiated an agreement with Monsanto to share the costs 

incurred. Monsanto agreed to pay 50% of the costs already incurred and 50% of the costs 

of all future investigation and remediation requirements. In response to the DHS order, the 

Port retained ERM-West, an environmental consultant in Walnut Creek, to perfolin the 

necessary field studies, prepare reports for submittal to the State, and conduct other 

required activities. Under that agreement, ERM-West developed a Remedial Action Plan 

which calls for construction of an impermeable barrier around the site and a soil cap to 

prevent movement of contaminants off-site. The Port and Monsanto must now design and 

build the remedial system. Due to the specialized nature of the design and ERM-West's 

expertise and familiarity with the site, it is appropriate to use ERM-West to design the 

project and prepare plans and specifications for the work. The Port has negotiated with 

ERM-West and it has been agreed that ERM can design the remedial system and prepare 

specifications for advertisement by the Port for $89,600.00. The necessary amount of the 

new agreement with ERM-West is 50% of $89,600.00, or $44,800.00. It was recommended 


- 14 -

that the Board authorize the preparation and execution of an agreement with ERM-West 

for design services for the superfund site. The recommendation was approved on passage 


Approval of Supplemental Agreement for Professional Services with Baseline 

Environmental Consulting for Environmental Investigation. Seabreeze Yacht Center Site 

was the subject of a memo to the Board from the Director of Engineering notifying the 

Board that the Port owns property at 280 6th Avenue (Seabreeze Yacht Center site). The 

site, formerly owned by PG&E, is currently vacant but was leased to Seabreeze Yacht 

Center, Inc. In 1989, the. Alameda County Health Services Agency issued a Notice of 

Violation to the Port requiring investigation and remediation of hazardous substances at the 

site. The Board subsequently approved the execution of an agreement with Baseline 

Environmental Consulting to perform the necessary field studies, prepare reports for 

submittal to the State, and conduct other required activities. The contract in the amount 

of 5250,000.00 was estimated based on the extent of the contamination known as the time. 

Subsequent to the Port entering a contract with Baseline, the Coast Guard notified the Port 

that oil was leaking into the estuary from a concrete containment structure at the Seabreeze 

Yacht Center site. The structure formerly held an above-ground fuel tank owned by PG&E. 

The discovery of the oil contamination caused an unexpected increase in the costs for 

performing environmental investigations at the site. In addition, the Port is now involved 

in litigation with both Seabreeze and PG&E with respect to the site and Baseline has 

provided assistance to the Port Attorney's office, which has further increased costs. The 

Port will require further technical assistance from Baseline, and it was recommended that 

the Board authorize the preparation and execution of a Supplemental Agreement with 

Baseline Environmental Consulting for professional services. As compensation for their 

services, it is proposed that Baseline be paid for the actual hours worked up to an agreed 

upon maximum. The agreed billing rates paid will cover direct salaries of personnel 

performing work on the project, fringe benefits, overhead costs, profit and other direct costs 

September 13, 1994 - 15 -

for services required for the work. The proposed maximum payment is $75,000.00, bringing 

the contract total to $325,000.00 with an additional $15,000.00 available at the discretion of 

the Executive Director. The recommendation was approved on passage of Resolution No. 

94345. 

Request for Ratification of Change Order for Passenger Rail Station Facility, Jack 

London Square was the subject of a memo to the Board from the Director of Engineering 

notifying the Board of the contract with SHC/Mark Diversified, Inc., for the construction 

of the Passenger Rail Station Facility. While performing earthwork at the parking lot, the 

contractor encountered approximately 15,000 square feet of soft spots in the subgrade soils. 

The cause of the soft spots is a layer of bay mud approximately three feet below the surface. 

To correct the problem, it is necessary to excavate the soft spots to one foot below the 

surface of the subgrade and fill the area with six inches of lean concrete and another six 

inches of aggregate base over the concrete. This will allow proper compaction of the 

aggregate base and the asphalt concrete layers. To keep the project on schedule, staff has 

directed the contractor to proceed with this additional work at a cost of approximately 

$40,000.00. It was recommended that the Board ratify a change order to SHC/Mark 

Diversified, Inc. for the additional work for the estimated cost of $40,000.00, bringing the 

total project cost to $6,329,902.00. The recommendation was approved on passage of 


Certification of the Final Supplemental Environmental Impact Report/Statement for 

the Oakland Harbor Deep-Draft Navigation Improvements, Findings Concerning Significant 

Effects of the Project, Adoption of Mitigation Measures for the Project, Adoption of 

Monitoring and Reporting Program, Statement of Overriding Consideration for the 

Unavoidable Adverse Temporary Air Ouality and Golfing Recreational Impacts, 

Authorization of the Executive Director to Sign the Project Cooperative Agreement with the 

Department of the Army and Approval of New Berth Dredging was the subject of a memo 

to the Board from the Director of Engineering notifying the Board that improvements to 

September 13. 1994 

- 16

the Inner and Outer Harbor Channels were authorized by the Federal Water Resources and 

Development Act of 1986. The WRDA 1986 authorized these two navigation improvement 

projects to be constructed by the U.S. Army Corps of Engineers and, administratively, the 

two projects have been combined into a single project. The Port of Oakland is the non- 

Federal sponsor of the project and will participate in its cost and in providing lands, 

easements, and rights of way, and necessary dredged material disposal areas and relocations, 

all in accordance with WRDA 1986. Due to the need for the Port to execute a Project 

Cooperation Agreement with the Corps, deepen the Port's berths associated with the federal 

channels that will be deepened, and provide an upland disposal site for dredged material 

unsuitable for unconfined aquatic disposal, the California Environmental Quality Act 

applies. The Port is the Lead Agency under CEQA for the project, and the Corps is the 

Lead Agency under the National Environmental Policy Act. The purpose of the project is 

to accommodate the larger ships that operate in international trade by dredging Oakland 

Harbor to 42 feet below Mean Lower Low Water. The project also includes deepening and 

enlarging 3.4 miles of the Outer Harbor and 4.0 miles of the Inner Harbor between the 

Entrance channel reach and the Charles P. Howard Terminal; widening of the Entrance 

channel and upper reach of the Inner Harbor and an existing turning area in the Outer 

Harbor; construction of a new turning basin in the Inner Harbor west of Howard Terminal; 

deepening of eight vessel berth areas in the Inner and Outer Harbors by the Port that are 

not currently maintained at -42 feet MLLW; and disposal of an estimated 6.6 million cubic 

yards (mcy) of dredged sediments from the channels, turning basins, and vessel berth areas 

at the following sites: disposal of up to 2.9 million cubic yards of dredged sediments in the 

Pacific ocean at a site designated by the U.S. Environmental Protection Agency; use of 

approximately 2.5 million cubic yards of sediments as part of the Sonoma Baylands wetlands 

restoration project in southern Sonoma County; and disposal of up to 1.2 million cubic yards 

of sediments at the site of the Galbraith golf course site in the City of Oakland. The 

environmental impacts of the proposed project have been evaluated in the Supplemental 


- 17 -

Environmental Impact Report/Environmental Impact Statement Oakland Harbor Deep- 

Draft Navigation Improvements to comply with both CEQA and NEPA. The analysis 

documented in the SEIR/S indicated that the following significant adverse impacts could 

potentially occur through implementation of the proposed project: temporary exceedance 

of air quality emission thresholds for NOx (nitrogen oxides) and SO2 (sulfer dioxide) from 

dredging and transport equipment; temporary fugitive dust generation from exposed soil at 

Sonoma Baylands and the Galbraith site during construction; temporary disturbance of 

sensitive animal species bordering or present at the Sonoma Baylands and Galbraith sites; 

degradation of ground and surface water quality at the Galbraith site; potential for seismic 

hazards at the Galbraith site; permanent loss of seasonal wetlands at the Galbraith site; 

temporary noise impacts from booster pumps at the Galbraith site; and peinianent loss of 

soccer and temporary loss of golfing recreational opportunities during dredging material 

disposal at the Galbraith site. The Draft SEIR/S was mailed to 300 agencies, groups, and 

individuals, and the Notice of Availability was mailed to approximately 1600 members of the 

public for review in March 1994, and was the subject of a public hearing held on April 14, 

1994. Twenty members of he public spoke at the public hearing. Sixty-five comment letters 

were received from agencies, organizations and individuals, in addition to 264 form letters 

from golfers at the Galbraith golf course, and 100 petitions signed by approximately 2,000 

people objecting to the use of the Galbraith site for dredged material disposal. All issues 

raised were addressed and mainly consisted of dredging impacts, disposal impacts and local 

community issues. All the potentially significant adverse impacts can feasibly be mitigated 

to levels that are less than significant through implementation of the mitigation measures 

included in the Project mitigation plan and monitoring program with the following 

exceptions: temporary exceedance of air quality emission threshold for NOx from dredging 

and transport equipment; and temporary loss of golfing recreational uses during construction 

at the Galbraith site. The most feasible measure to reduce project NOx emissions would 

be to retard injection timing of diesel-powered dredging by two degrees. This measure 


- 18 -

would reduce NOx emissions by about 15%, and is included in the project mitigation plan. 

The temporary loss of golfing opportunities for the general public cannot be avoided. The 

temporary loss of this recreational facility cannot be mitigated until the dredged material 

is dry, and a new golf course is constructed as included in the mitigation plan and as is 

required by the Port's proposed new Lease with the City of Oakland. The State CEQA 

Guidelines provides that where the decision of a public agency allows the occurrence of 

significant effects which are identified in the Final EIR, but are not at least substantially 

mitigated, the agency shall state in writing the specific reasons to support its action based 

on the Final EIR and/or other information in the record, and this statement is referred to 

as a "statement of overriding considerations." Although the two temporary significant 

impacts identified above (NOx emissions and loss of golfing opportunities) cannot feasibly 

be reduced to levels of insignificance, the project will generate economic benefits of national 

and re gional significance that will override these temporary impacts. The Corps has 

estimated that every dollar invested in this project will generate $14.7 dollars in economic 

benefits, or $135 million in annual net benefits. The Final SEIR/S reports a broad array 

of economic benefits including at least 900 direct and induced jobs and a substantial 

increase in business revenue. Based on the foregoing, the Project's contribution to the Bay 

Area economy and employment significantly outweighs the temporary impacts that cannot 

be completely mitigated. The mitigation measures included in the proposed project are 

included as Appendix J of the Final SEIR/S, and the Corps, Port and City of Oakland are 

responsible for implementing various elements of the plan. The WRDA 1986 requires that 

before initiation of construction of a Federally authorized navigation project the Secretary 

of the Army and the Non-Federal Sponsor enter into a Project Cooperation Agreement. 

Under WRDA 1986, the PCA must include the Non-Federal Sponsor's agreement to (1) 

provide to the Federal Government lands, easements, and rights-of-way, and to provide 

dredged material disposal areas and perform the necessary relocations required for 

construction, operation, and maintenance of the project, (2) hold and save the United States 

September 13, 1994 - 19 -

free from damages due to the construction or operation and maintenance of the project, 

except for damages due to the fault or negligence of the United States or its contractors and 

(3) provide to the Federal Government the Non-Federal Sponsor's share of all other costs 

of construction of such project. Under the obligation, the Port's major responsibility is for 

providing the Galbraith Golf Course site as a dredged material disposal area. Under 

WRDA 1986, movement of the Navy's sewer line in the Inner Harbor is a shared cost, and 

not a Port's responsibility. However, the provision of easements for movement of the Navy 

sewer line is a Port responsibility. Based on the federal navigational servitude and the terms 

of applicable Corps permits, the dredging of areas and the removal of piers located outside 

Oakland's boundaries do not involve the Port because the dredging is authorized under the 

navigational servitude and pier removal is required under the applicable Corps' permits. 

Under WRDA 1986, the Port is obligated to pay during the period of construction of the 

project 25% of the cost of the construction that are associated with general navigation 

features. The Port's previously expended preconstruction engineering and design costs, 

estimated at approximately $4.5 million, constitute a part of the cost of construction, and 

represent a prepayment by the Port of its 25% share. In addition to its 25% obligation, the 

Port is required to pay an additional 10% of the cost of the general navigation features of 

the project. Other payments due have been credited with Port sponsored activities that have 

taken place and, consequently, the Port will have no further payment obligation beyond the 

25% amount paid during construction. The Corps has agreed that the Port will not be 

required to pay any portion of the cost of dredging so far as it relates to dredging down to 

the current project depth plus one foot, because the cost of dredging down to the current 

project depth plus one foot is a cost of maintenance of the existing channels which is to be 

borne solely by the Corps. The PCA will provide a mechanism for the Corps to agree at 

the Port's cost to perform new Port berth dredging as a part of the Corps dredging contract, 

permitting the Port to take advantage of the resulting economies of scale in combining its 

berth dredging with the channel dredging. It is recommended that the Board adopt the 


- 20 -

following resolutions: certify that it has reviewed and considered the information contained 

in the Final SEIR/S for the Oakland Harbor Deep-Draft Navigation Improvements, and 

that it has been prepared in compliance with CEQA, the State CEQA Guidelines and the 

Port CEQA Guidelines; find that the mitigation measures as listed in Attachment A and 

Appendix J of the Final SEIR/S will avoid or substantially lessen the significant 

environmental effects identified in the SEIR/S except for temporary air quality (NOx) 

emissions during construction, and the temporary loss of golfing opportunities for the 

general public during construction and until construction of a new golf course is completed 

at the Galbraith site; adopt the mitigation measures and mitigation responsibilities as listed 

in Attachment A and Appendix J of the Final SEIR/S and incorporate them into the project 

to reduce potential significant impacts. The Port will implement those mitigation measures 

that are identified as Port responsibility, and will monitor and report on those measures to 

be implemented by other parties; adopt a statement of overriding consideration that the 

economic and transportation benefits of the proposed project outweigh the unavoidable 

adverse temporary air quality and golfing recreational impacts; approve the supplemental 

enhancement measures; and find that the SEIR/S reflects the independent judgement of the 

Board. Also recommended was approval and authority for the Executive Director to sign 

the Project Cooperative Agreement with the Department of the Army; and find and 

determine that it is in the best interests of the Port to dispense with competitive bidding for 

deepening of Port berths commensurate with the project depth, and authorize the Executive 

Director to accomplish the deepening of the Port berths in accordance with the PCA 

through the Corps' construction contract. The recommendation was approved on passage 

of Resolution No. 94356 for certifying environmental impact report, Resolution No. 94357 

for authorizing Corps of Engineers to perform dredging work, and Resolution No. 94358 for 

authorizing Project Cooperation Agreement. 

Management Agreement with Marine Terminals Corporation at 9th Avenue Terminal 

was the subject of a memo to the Board from the Director of Maritime notifying the Board 

September 13, 1994 - 21 -

that Marine Terminals Corporation has been operating at the 9th Avenue Terminal under 

various Agreements since 1965. The current three year Agreement expires September 30, 

1994. Operations are conducted on approximately 21 acres plus berthing area. The primary 

cargo activity is steel products. Lumber, limited container operations and general break- 

bulk cargo requiring a transit shed are also handled. As a result of the decline in cargo 

activity, MTC and the Port have negotiated a new Agreement for an 18 month period. It 

was recommended that the Board approve the new Agreement. The basic provisions 

include: MTC will guarantee the Port the minimum sum of Three Hundred Thousand 

Dollars ($300,000.00) for each contract year from dockage and wharfage revenues; MTC will 

retain 30% of all tariff revenues from dockage and wharfage up to Seven Hundred 

Thousand Dollars ($700,000.00) and 50% of all dockage and wharfage revenues in excess 

of Seven Hundred Thousand Dollars ($700,000.00); MTC will retain ten percent of wharf 

demurrage and storage collected; the six acres which were previously deleted from the 

terminal and are delineated as Parcel "B" will be available for assignment by the Port to 

other prospective users; and MTC will be allowed occasional use of the Seventh Street 

Marine Container Terminal and Berth 40 when cargo or vessels cannot be accommodated 

at the 9th Avenue Terminal because of cargo weight, vessel draft or rail access constraints. 

The proposed Agreement also contains a provision to resolve a $156,594.53 MTC shortfall 

relating back to previous contract years. This shortfall was caused by the continuous decline 

in steel cargo and the difficulty MTC had in marketing the facility due to the possibility that 

the facility might eventually be used to support dredging operations. The proposed 

negotiated settlement amounts to $123,708.69. The recommendations were approved on 

passage of an ordinance to print. 

Approval of Sale of PACECO Crane X421 to Encinal Terminals was the subject of 

a memo to the Board from the Director of Engineering notifying the Board that at the 

Board meeting of September 8, 1992, the Board declared the 25-year old Port PACECO low 

profile cranes X421 and X422 surplus equipment and authorized the Executive Director to 


- 22 -

solicit offers for the purchase of the cranes. In 1993, the Board approved modifying crane 

X422 to handle larger ships and relocating it from Seventh Street Marine Terminal to 

Howard Terminal leaving only crane X421 for sale. One offer has been received from 

Encinal Terminal for $300,000.00 subject to inspection/approval of their engineers. Their 

engineers inspected the crane on August 15, 1994 and approved purchase of the crane. 

Encinal Terminals is buying the crane for use at Nanjing (Nanking), China which is on the 

Yangtze River, and they must move the crane before October 1994 as the water level in the 

Yangtze River is not deep enough to bring in a ship with the crane except during the three- 

month period -- August, September, and October. Encinal Terminals will pay $150,000.00 

down on signing of the sales contract and the remaining $150,000.00 on taking possession 

of the crane or 30 days after the signing of the contract, whichever comes first. It was 

recommended that the Board authorize the sale of the crane to Encinal Terminals. The 


Extension of Tokyo an d Hon g Kong Agent Contracts was the subject of a memo to 

the Board from the Director of Maritime notifying the Board that the Port Maritime agency 

contract with Nippon Maritime Corporation of Tokyo, Japan and Inchcape Shipping Services 

of Hong Kong to represent the Port of Oakland on a part time basis. The contract for 

Nippon Maritime Services was for $66,000.00 annually, and the contract for Inchcape 

Shipping Services was for $24,000.00 annually. It was recommended that the Board approve 

one year extensions for both agreements, effective October 15, 1994, at the existing 

compensation levels. The recommendation was approved on passage of Resolution No. 

94347. 

Approval of Engineering Design Services for Modifications to Batter Piles at Berths 

60-63, Middle Harbor Terminal was the subject of a memo to the Board from the Director 

of Engineering notifying the Board that as part of the channel deepening project, Berths 60- 

63 must be deepened to -42 feet. In studying the berths for deepening, it has been 

determined that a number of batter piles which support the waterside crane rail intrude into 


- 23 -

the berth area above that depth and must be moved from the berth area. To solve the pile 

intrusion situation, it is necessary to perform a detailed engineering study of the wharf to 

develop various modifications schemes to the piles and possibly the cranes, in order to 

determine the most cost effective solution. It was recommended that the Board authorize 

the preparation and execution of a contract with Liftech Consultants Inc. to perform the 

study, prepare plans and specifications, furnish technical support during bidding and 

construction and prepare the final as-builts. Liftech will be paid for the actual hours worked 

up to an agreed upon maximum. The agreed billing rates paid will cover direct salaries of 

personnel performing work on the project, fringe benefits, overhead costs, profit and other 

direct costs for services required for the work. The maximum payment that can be made 

under the agreement is $180,000.00 with an additional $72,000.00 available at the discretion 

of the Executive Director. The recommendation was approved on passage of Resolution 

No. 94349. 

Authorization to Execute an Agreement with EBMUD for Relocation of Their 

Facilities at the Middle Harbor Road onstruction Site was the subject of a memo to the 

Board from the Director of Engineering recommending approval to enter into an agreement 

with EBMUD for the relocation of water meters which include 10" and 6" fire services and 

4" and 3/4" domestic services located on the construction site. The agreement requires the 

Port to pay in advance a total amount of $23,555.00. All utility relocation costs in 

connection with this project, including relocation of the water meters, will be reimbursed by 

Caltrans. The recommendation was approved on passage of Resolution No. 94350. 

First Reading of an Ordinance Granting the Navy a Permanent Sewer Easement 

Affecting Union Pacific Railroad Leasehold and Tide and Submerged Lands in Oakland 

as Part of the Harbor Deepening Project was the subject of a memo to the Board from the 

Director of Director of Commercial Real Estate notifying the Board that one of the Port's 

obligations under the Harbor Deepening Project is to provide an easement for the 

movement of the Navy sewer line that crosses the Oakland Inner Harbor. The easement 


- 24 -

is a strip of land thirty feet (30') wide. Parcel 1 of the easement will cross a portion of the 

Union Pacific Railroad UPRR leasehold on Port land and Parcel 2 will cross submerged 

land in the City of Oakland which is owned by the Port. Parcel 3 of the easement will cross 

submerged land in the City of Alameda. The Navy will acquire easement rights directly 

from the City of Alameda, The Grant of Easement is permanent, and the consideration is 

$1.00. The project is included in the Harbor Deepening Project environmental document. 

The recommendation was approved on passage of an ordinance to print„ 


Resources recommended the appointment of Robert A. Middleton, as Media Relations 

Manager, effective September 19, 1994, at $5,600.00 per month; Steve S. Yeh, as Port 

Principal Programmer Analyst, effective September 19, 1994, at $5,072 per month; Lynne 

S. Joiner, as Port Video/Multimedia Specialist, effective September 19, 1994, at $4,832 per 

month; and Gloria Flores Ramirez, as Port Field Representative I, effective September 19, 

1994, at $3,455.00 per month. Also recommended was the creation of one additional 

position of Port Technical Support Analyst III in the Management Information Systems 

Department of the Finance Division; the revision of job specifications for the Port-unique 

Civil Service classification of Port Land Surveyor in the Engineering Construction 

Department; the examination announcement for the open examination for the Port-unique 

Port Land Surveyor; and an extended leave of absence for Ms. Imelda T. Osantowski, Civil 

Engineer, for maternity and personal reasons through October 2, 1994 for 26 working days. 

The recommendations were approved on passage of Resolution No. 94360 for appointments; 

Resolution No. 94361 for job specification; Resolution No. 94362 for examination 

announcement; Resolution No. 94363 for leave of absence; and on an ordinance to print for 

creation of position. 

Approval of Memorandum of Understanding with the City of Oakland for Special 

Services Payments for Fiscal Year Ending June 30. 1995 was the subject of a memo to the 

Board from the Director of Finance recommending approval of the MOU which provides 

September 13, 1994 - 25 -

for $1,413,900.00 to the City of Oakland for Airport police services and other administrative 

services that the City provides to the Port. The recommendation was approved on passage 


Supplemental Agreement with Ben Harrison Associates. Inc.. for Consulting Services 


that the Board previously adopted a resolution approving the original contract with Ben 

Harrison Associates Inc. for $200,000.00. Of this amount $180,000.00 was dedicated to the 

Aviation Division and $20,000.00 was dedicated to provide organizational development 

services to the Human Resources Division. It was recommended that the Board approve 

a supplemental agreement to pay fees not to exceed $4,500.00 to Ben Harrison Associates, 

Inc. for additional work performed. The recommendation was approved on passage of 


Authorization to Execute an Agreement to Evaluate Current Procurement Procedures 

and Prepare Policy and Procedures Procurement Manual was the subject of a memo to the 

Board from the Deputy Executive Director notifying the Board that staff has determined 

that a more comprehensive procurement and contracting procedure should be written to 

clarify procedures, policies, authorities and accountabilities associated with Port procurement 

activit y. It was recommended that the Board authorize the preparation and execution of a 

contract with Grant, Smith, Vincent & Company to provide professional consulting services 

related to the development of a contracting and procurement procedures manual at a cost 

of approximately $30,000.00. The recommendation was approved on passage of Resolution 

No. 94353. 


- 26 -

vote: 

The following resolutions were introducedl and passed separately by the following 

Ayes: Commissioners Broussard, Kramer, Loh, Ortiz, 

Noes: None 


Absent: Commissioners Cole and Vohs - 2 


APPROVING AND AUTHORIZING EXECUTION OF IN'! E,RIM PARKING 

MANAGEMENT AGREEMENT WITH APCOA PARKING." 



HRATCH KOUYOUMDJIAN & ASSOCIATES FOR ENGINEERING DESIGN 

CONSULTING SERVICES CONSTITUT ES PROFESSIONAL OR SPECIALIZED 




FINDING AND DE I ERMINING THAT A PROPOSED AGREEMENT WITH 

THE SERVICE INSTITUIE FOR CUSTOMER SERVICE CONSULTING 

SERVICES CONSTITU I ES PROFESSIONAL OR SPECIALIZED SERVICES 





AND CONCESSION AGREEMENT WITH JOHN EELSING AND LAWRENCE 

PERRY." 



AND CONCESSION AGREEMENT WITH SOUTHWEST AIRLINES CO." 




("RENEWAL AGREEMENTS") WITH 1) JOHN EELSING AND LAWRENCE 

PERRY, 2) BLAINE R. BANKS, 3) GEORGE L. FAWKNER, 4) PATRICK 

MEDIA GROUP, INC., 5) SEA FILE SEAHAWKS, INC. AND 6) LOUIS B. 

FIELDS AND JOSEPH H. FIELDS II." 

September 13, 1994 - 27 -


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN FIRST 

SUPPLEMENTAL LICENSE AND CONCESSION AGREEMENT WITH 

SMAR I E CARATE, INC." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN THIRD 

SUPPLEMENTAL AGREEMENT WITH ALAMO RENT A CAR, INC." 


GRANTING SOUTHWEST AIRLINES COMPANY PERMISSION TO 



THIS NUMBER NOT USED." 


APPROVING AND AUTHORIZING 'TERMINATION OF POWER SALE 

AGREEMENT WITH PACIFIC GAS AND ELECTRIC COMPANY." 


FOR APPROVAL OF CHANGE ORDER FOR CONS'I RUCTION OF AIRFIELD 

SIG NAGE, METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, 

OAKLAND, CALIFORNIA." 


APPROVING AMENDMENT TO AGREEMENT BETWEEN CITY OF 

ALAMEDA AND BLUE AND GOLD FOR ADOPTION OF NEW PASSENGER 

FARES FOR FERRY SERVICE BETWEEN JACK LONDON SQUARE, THE 

CITY OF ALAMEDA AND SAN FRANCISCO, AND APPROVING AND 

AUTHORIZING AMENDMENT TO LICENSE AGREEMENT WITH HARBOR 

BAY ISLE ASSOCIAI ES." 


CERTIFYING CONSIDERATION OF INITIAL STUDY AND MITIGATED ED 

NEGATIVE DECLARATION FOR THE MOVIE THEATRE AT JACK 

LONDON SQUARE; FINDING NO SUBSTANTIAL EVIDENCE OF 

SIGNIFICANT EFFECT ON THE ENVIRONMENT; APPROVING THE 

NEGATIVE DECLARATION; APPROVING AND AUTHORIZING THE 

EXECUTIVE DIRECTOR TO EXECUTE THE COVENANT OF DEED 

REST RICTION AND AGREEMENT OPERATION AND MAINTENANCE; 

AUTHORIZING AN ADDITIONAL PAYMENT OF $75,000 TO THE STATE OF 

CALIFORNIA. ENVIRONMENTAL PROTECI ION AGENCY, DEPARTMENT 

OF TOXIC SUBSTANCES CONTROL ('DTSC"); AND AUTHORIZING THE 

PAYMENT OF BROKER'S COMMISSIONS." 

September 13, 1994 - 28 -


GRANTING AMB PROPERTIES, L.P. PERMISSION TO PERFORM CERTAIN 

WORK." 



ERM-WEST FOR DESIGN CONSULTING SERVICES CONSTITUTES 



AGREEMENT." 

"RESOLUTION N.O. 94345 

FINDING AND DEI ERMINING THAT A PROPOSED AGREEMENT WITH 

YANE NORDHAV DOING BUSINESS AS BASELINE ENVIRONMENTAL 

CONSULTING FOR ENVIRONMENTAL CONSULTING SERVICES 

CON STITUI ES PROFESSIONAL OR SPECIALIZED SERVICES AND 




APPROVAL OF CHANGE ORDER TO CONIRACT WITH SHC/MARK 

DIVERSIFIED, INC. FOR THE CONSTRUCTION OF PASSENGER RAIL 

STATION FACILITY, JACK LONDON SQUARE, OAKLAND, CALIFORNIA." 



NIPPON MARITIME CO., LID. FOR REPRESENTATION SERVICES 

CON STITUI ES PROFESSIONAL OR SPECIALIZED SERVICES AND 

WAIVING COMPEI ITIVE BIDDING; AND AUTHORIZING EXECUTION OF 




INCHCAPE SHIPPING SERVICES FOR REPRESENTATION SERVICES 






Lit- I ECH CONSULTANTS, INC. FOR ENGINEERING DESIGN CONSULTING 





- 29 -


APPROVING AND AUTHORIZING EXECUTION OF FACILITIES 

RELOCATION AGREEMENTS WITH EAST BAY MUNICIPAL UTILITY 

DI SI RICT." 


APPROVING AND AUTHORIZING EXECUTION OF A 1 ENTH 

SUPPI FMENTAL AGREEMENT TO MEMORANDUM OF UNDERSTANDING 

WITH THE CITY OF OAKLAND FOR PROVISIONS OF AND PAYMENT FOR 

SPECIAL SERVICE." 



AGREEMENT WITH NEXT CENTURY CONSULTING, INC. DOING 

BUSINESS AS BEN HARRISON ASSOCIATES, INC., FOR HUMAN 

RESOURCES CONSULTING SERVICES CONSTITUI ES PROFESSIONAL OR 


FIRST SUPPLEMENTAL AGREEMENT." 


FINDING AND DE1 ERMINING THAT A PROPOSED AGREEMENT WITH 

GRANT, SMITH, VINCENT & COMPANY FOR PROCUREMENT 

CONSULTING SERVICES CONSTITUIES PROFESSIONALOR SPECIALIZED 




vote: 

GRANTING CROWLEY MARINE SERVICES, INC. PERMISSION TO 




Noes: None 

Vohs and President Lockhart 6 

Absent: Commissioners Cole - 1 


FINDING AND DE I ERMINING THAT BERTHING OR MOORING OF A 

CERTAIN HOUSEBOAT STRUCTURE OWNED AND UNDER THE 

CONTROL OF MR. LARRY KEELER IN THE PORT AREA OR PORT 

MARINAS IS A PUBLIC NUISANCE AND VIOLAI ES PORT ORDINANCE NO. 

2161." 


- 30 -


CERTIFYING REVIEW AND CONSIDERATION OF FINAL SUPPLEMENTAL 

ENVIRONMENTAL IMPACT REPORT/ ENVIRONMENTAL IMPACT 

STA I EMENT ON OAKLAND HARBOR DEEP-DRAFT NAVIGATION 

IMPROVEMENTS, ADOPTING MITIGATION MEASURES, MAKING 

CERTAIN FINDINGS AND DE1 ERMINATIONS REGARDING POTENTIAL ENTIAL 

SIGNIFICANT EFFECTS ON THE ENVIRONMENT, ADOPTING A 

STATEMENT OF OVERRIDING CONSIDERATIONS FOR TEMPORARY 

SIGNIFICANT IMPACTS ON AIR QUALITY AND GOLFING RECREATION, 

AND ADOPTING A REPORTING AND MONITORING PROGRAM FOR 

MEASURES TO MITIGATE OR AVOID SIGNIFICANT EFFECTS ON THE 

ENVIRONMENT." 

"RESOLU1ION NO. 94357 

FINDING AND DE1ERMINING THAT IT IS IN THE BEST IN1ERESTS OF 

THE PORT TO ACCOMPLISH NEW DREDGING OF PORT BERTHS AS A 

PART OF THE OAKLAND HARBOR NAVIGATION IMPROVEMENT 

PROJECT WITHOUT COMPETITIVE BIDDING AND THROUGH THE CORPS 

OF ENGINEERS' CONSTRUCTION CONTRACT." 


APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO 

EXECUTE A PROJECT COOPERATION AGREEMENT WITH THE 

DEPARTMENT OF THE ARMY FOR CONSTRUCTION OF THE OAKLAND 

HARBOR NAVIGATION IMPROVEMENTS PROJECT." 


AUTHORIZING EXECUTION OF CONTRACT FOR SALE OF CONTAINER 

CRANE NO. X421 WITH ENCINAL TERMINALS." 




APPROVING JOB SPECIFICATION FOR THE POSITION OF PORT LAND 

SURVEYOR." 



PORT LAND SURVEYOR." 


RATIFYING EXTENDED LEAVE OF ABSENCE TO IMELDA T. 

OSANTOWSKI." 

September 13, 1994 - 31 -


AUTHORIZING THE EXECUTION OF A LEASE WITH THE CITY. OF OAKLAND 

(THE LEW F. GALBRAITH MUNICIPAL GOLF COURSE)," and Port Ordinance No. 

3223 being, "AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION 

OF A LEASE 'I ERMINATION AGREEMENT WITH THE CITY OF OAKLAND (THE 

LEW F. GALBRAITH MUNICIPAL GOLF COURSE)," and Port Ordinance No. 3228 

being, "AN ORDINANCE APPROVING LEASE OPTION AGREEMENT WITH DOW- 

PAC PROPERTIES FOR DEVELOPMENT OF MOVIE THEM EF', SITE IN JACK 

LONDON SQUARE," and Port Ordinance No. 3229 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING EXECUTION OF REAL ESTAI E PURCHASE 

AND SALE AGREEMENT FOR SALE TO AMB PROPERTIES, L.P. OR ITS 

ASSIGNEE OF CERTAIN REAL PROPERTY LOCATED AT THE 

NORTHWESTERLY CORNER OF KENNEDY STREET AND EMBARCADERO 

SI REET AND CERTIFYING CONSIDERATION OF INITIAL STUDY AND 

MITIGAI ED NEGATIVE DECLARATION FOR THE COUNTY HOUSEHOLD 

HAZARDOUS WAS! E COLLEC I ION AND TRANSFER FACILITY ("PROJECT'), 

FINDING NO SUBSTANTIAL EVIDENCE OF SIGNIFICANT EFFECT ON THE 

ENVIRONMENT, APPROVING THE MITIGATED NEGATIVE DECLARATION AND 

APPROVING THE PROJECT," and Port Ordinance No. 3230 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING EXECUTION OF RIGHT OF WAY CONTRACT 

FOR SALE TO STA I E OF CALIFORNIA OF FEE EASEMENTS IN CERTAIN REAL 

PROPERTY LOCA I ED SOUTH OF BAY BRIDGE TOLL PLAZA," and Port Ordinance 

No. 3231 being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 2833 

RELATING TO WHARF DEMURRAGE AND STORAGE RULES AND RA'IES AND 

DOCKAGE," and Port Ordinance No. 3232 being, "AN ORDINANCE AUTHORIZING 

THE EXECUTION OF 1 ERMINAL USE AGREEMENT WITH D'AMICO SCIETA di 

NAVIGAZIONE per AZIONI," and Port Ordinance No. 3233 being, "AN ORDINANCE 


- 32 -


ITALIA S.P.A. di NAVIGAZIONE," and Port Ordinance No. 3234 being, "AN 

ORDINANCE AMENDING PORT ORDINANCE NO. 867 TO CREATE NEW SALARY 

SCHEDULE NO. 259.26, TO RETIME THE POSITION OF AIRPORT MANAGER 

AND TO CREAI E NEW POSITIONS OF MEDIA RELATIONS MANAGER AND 

PORT VIDEO/MULTIMEDIA SPECIALIST," were read a second time and passed by the 



Noes: None 


Absent: Commissioner Cole - 1 


AUTHORIZING EXECUTION OF AN AMENDMENT TO GRANT OF EASEMENT 

WITH CHEVRON U.S.A. INC. OR CHEVRON CORPORATION AND DIRECTING 

RECORDATION THEREOF," and Port Ordinance No. being, "AN ORDINANCE 

AUTHORIZING THE EXECUTION OF MANAGEMENT AGREEMENT WITH 

MARINE 1ERMINALS CORPORATION," and Port Ordinance No. _ being, "AN 

ORDINANCE APPROVING AND AUTHORIZING THE GRANT OF EASEMENT TO 

THE UNITED STATES OF AMERICA AN EASEMENT FOR MOVEMENT OF NAVY 

SEWER LINE IN THE MIDDLE HARBOR AREA," and Port Ordinance No. being, 

"AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 CREATING ONE 

ADDITIONAL POSITION OF PORT I ECHNICAL SUPPORT ANALYST III," were read 

a first time and passed to print by the following vote: 


Noes: None 


Absent: Commissioner Cole - 1 


- 33 -


entering into a conference with Labor Negotiators - Agency Negotiator: I.E.D.A. - 

Employment Organziation: Local 790, Government Code Section 54957.6; conference with 

Real Property Negotiator pursuant to Government Code Section 54956.8; conference with 

Real Property Negotiator: Property - 10505 Doolittle Drive, Oakland, California, Negotiating 

Parties - Ransom/McKay Golf, Inc., Under Negotiation - Price and Terms of Payment; 

conference with Legal Counsel, existing litigation, pursuant to subdivision (1) of Government 

Code Section 54956.9, Name of cases - Port of Oakland v. Conrad :Building Systems, 

Alameda County Superior Court Action No. 692479-1 (Port Case No. 91-12-C), Mariah 

Baird v. Port of Oakland, et al., San Francsico Superior Court Action No. 957762 (Port Case 

No. 93-08-PI/O), and McClendon v. Port of Oakland, Alameda County Superior Court Case 

No. 712268-6 (Port Case No. 93-10-EM/O). 

vote: 




Noes: None 


Absent: Commissioners Cole - 1 


AMENDING RESOLUTION NO. 93081 TO PROVIDE AN ADDITIONAL 

$20,000 FOR EXPERT WITNESS COSTS IN ALAMEDA COUNTY SUPERIOR 

COURT ACTION NO. 692479-1." 


AUTHORIZING THE PORT ATTORNEY TO MAKE A SE I I LEMENT OFFER 

IN THE MA I'l ER OF MARIAH BAIRD V. PORT OF OAKLAND." 


RATIFYING AND APPROVING APPOINTMENT AND EMPLOYMENT OF 

SPECIAL COUNSEL." 

September 13. 1994 - 34 -

seconded. 



f' 


- 35 -




The regular meeting scheduled for September 20, 1994, was adjourned by the 

Secretary of the Board to 3:00 p.m., Tuesday, September 27, 1994, in the office of the 

Board, second floor, 530 Water Street, Oakland, California, due to the absence of all the 

members of the Board. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The adjourned regular meeting was held on Tuesday, September 27, 1994, at the hour 


Vice President Broussard presiding, appropriate notice having been given and posted. 

Commissioners present: Cole, Loh, Vohs and 


Commissioners absent: Kramer, Ortiz and President Lockhart - 3 

Also present were the Executive Director; Port Attorney; Assistant Port Attorney 

Thomas Clark; Director of Commercial Real Estate; Director of Human Resources; 

Director of Engineering; Director of Maritime; Director of Communications; Director of 

Policy and Strategic Planning; Director of Finance; Director of Equal Opportunity; Chief 

Engineer; Chief of Planning; Media Relations Manager; and Secretary of the Board. 

The minutes of the regular meeting of August 16, 1994; regular meeting of 

September 6, 1994; and the adjourned regular meeting of September 13, 1994 were 

approved as submitted and ordered filed. 

Commissioner Broussard, member of the Audit and Finance Committee, informed 

the Board that the committee had met and reviewed their current agenda. 

Commissioner Loh, Chair of the Customer Relations & Employment Development 


agenda.

commissioner Loh, member of the Human Resources Committee, informea-the 


Ms. Jean Apaydin and Ms. Virginia Rose appeared before the Board to inform the 

Board of the long association between the Port and the United Nation's Association of the 

East Bay and of the U.N. flag placed in Jack London Square. The Board was also informed 

that the United Nations would be celebrating its 50th anniversary next fall and special 

ceremonies would be held. They asked that the Board participate in the planning 

committee and attend this year's ceremony; and they requested special consideration to 

name the U.N. flag site at Jack London Square as "United Nations Circle". 

The Board took the requests under advisement with the notation that the infol 

would be presented to President Lockhart for his input. 

Extension of the Airport Parking Shuttle Bus Contract for Additional Three-Year 

Term was the subject of a memo to the Board from the Director of Aviation notifying the 

Board of the three-year management Agreement with Airport Parking Management of 

Oakland, dba Oakland Airport Shuttle Bus Company, which became effective October 1, 

1991, to provide shuttle service for Airport patrons from the Airport parking lots to the 

passenger terminals. The buses currently used by the company to shuttle passengers are 

gasoline vehicles and have an average of over 90,000 miles. Additionally, out of a fleet of 

10 vehicles, only two buses are handicap equipped and they should be replaced with new 

buses that meet the ADA regulations. In keeping with the Port's commitment to improve 

air quality, Airport staff requested the operator to submit a cost estimate to replace the 

aging current bus fleet of 10 vehicles with new CNG (Compressed Natural Gas) and 

handicap equipped buses. The Operator has proposed an hourly bus rate of $26.70 

assuming a three-year tee in that includes the cost of 10 new handicap equipped CNG buses, 

CNG fuel, insurance costs, personnel costs and management fee. The annual cost with the 

new rate will be $1,520, 298.00. It was recommended that the Board authorize the extension 

of the current agreement with Airport Parking Management of Oakland for a term of three 

September 27, 1994 - 2 -

years commencing October 1, 1994 and ending September 30, 1997. The recommendation 


Acceptance of FAA Grant Offer for AIP-17 was the subject of a memo to the Board 

from the Director of Engineering notifying the Board that the FAA is now offering to the 

Port a Grant Offer for the balance of this year's entitlement funds in the amount of 

$1,708,914.00 under AIP-17. The fund will be used for the Earhart Road Improvements. 

The estimated total cost under AIP-17 is $2,120,504.00 with the Port Share at $411,590.00. 

It was recommended that the Board accept the FAA Grant Offer of $1,708,914.00 under 

AIP-17 as the second installment of entitlement funds for federal fiscal year 1994. The 


Approval of First Sup plemental Agreement to Lease with National Car Rental 

System, Inc. was the subject of a memo to the Board from the Director of Aviation notifying 

the Board that National Car Rental System, Inc. leases space at the Airport for its rental 

car service facility. National's service facility is a former gasoline service station located on 

Neil Armstrong Way. The Port's Environmental Department is reducing the Port's 

environmental hazard liability by removing certain underground tanks for which the Port is 

responsible and which have the greatest potential for environmental contamination. One 

such underground tank is the former service station's waste oil storage Tank MF-18 located 

beneath National's car wash exit ramp. In order to reduce the Port's liability exposure, it 

is proposed that this tank be excavated, removed and disposed of, and the site remediated, 

if necessary, prior to the State regulations' December 11, 1998 removal deadline. A First 

Supplemental Agreement has been negotiated which provides for the Port to supply 

National with an above ground waste oil receptacle to replace Tank MF-18. The 

replacement is estimated to cost less than $15,000.00. The Port would contract for the 

excavation, removal and disposal of Tank MF-18 and remediate the site, if necessary. The 

preliminary cost estimate for removing Tank MF-18 is $60,000.00. The Port would 

reimburse National for labor and pressure washer rental costs associated with temporary loss 


of its car wash in an amount not to exceed $1,300.00 per week for the approximately three- 

week period that the car wash bay is out of service. It was recommended that the Board 

authorize the execution of the First Supplemental Agreement to the Lease dated August 19, 

1980 providing for the tank removal. The recommendation was approved on passage of 



of One Year or Less with Andy Frain Services. Inc.. Robert F. Brown, J.F. McRae Aero- 

Craft, Inc., Savage Magneto Service. Thomas Hird dba Trans Ocean Aviation was the 

subject of a memo to the Board from the Director of Aviation recommending approval to 

renew the agreements with Andy Frain Services, Inc. for 529.45 square feet of office space 

in Building M-102 and 81 square feet of office space in Building M-130, at $1,323.97 per 

month, effective October 1, 1994; Robert F. Brown, for 461 acres of land located in 

American Canyon, Napa County, used for cattle grazing, at $1,010.04 per year, effective 

June 1, 1994; J. F. McRae Aero-Craft, Inc., for 4,000 square feet of shop space and 600 

square feet of paved land located in and adjacent to Building L-739 at the Airport, at 

$1,088.55 per month, effective August 1, 1994; Savage Magneto Service, for 3,200 square 

feet of shop space and 800 square feet of paved land in and adjacent to Building L-737, 

2,000 square feet of land under Building L-629 and 1,800 square feet of unpaved land 

adjacent to Building L-629 at the North Airport, at $1,032.94 per month, effective July 1, 

1994; and with Thomas Hird dba Trans Ocean Aviation, for 1,613 square feet of office space 

and 97 square feet of storage space in Building L-107, North Airport, at $1,999.06 per 

month, effective August 1, 1994. The recommendation was approved on passage of 


Approval of Agreement to Renew License and Concession Agreement with Air 

Transport International ("ATI"). Ratification of Termination Notice for ATI Tenancy and 

Approval of New License and Concession Agreement with ATI was the subject of a memo 

to the Board from the Director of Aviation notifying the Board that Air Transport 

September 27, 1994 - 4 -

International occupies 986 square feet of ramp space at the Airport. ATI placed a trailer 

on the premises which it uses for office and storage of equipment used in support of its air 

cargo and aircraft maintenance business. ATI pays the Port $410.83 per month rent for the 

ramp space. The Port storm water drain pipe extends across ATI's premises and this 

underground pipe is damaged. In order to repair it and to ensure future maintenance 

access, the Port requires ATI to relocate its premises. It was recommended that the Board 

renew the existing agreement through September 30, 1994; ratify the thirty (30) day prior 

written termination notice of the Agreement to be effective September 30, 1994; and 

approve a new License and Concession Agreement effective October 1994 for larger 

premises located southwest of the fuel load rack. The new rent would be $885.60 per 

month. The recommendation was approved on passage of Resolution No. 94371. 

Approval of New License and Concession Agreements with Burlington Air Express 

and Sierra Academy of Aeronautics, Inc. was the subject of a memo to the Board from the 

Director of Aviation recommending approval of new agreements with Burlington Air 

Express for 7,200 square feet of paved land in the vicinity of Aircraft Parking Positions "E" 

and "F" and 760 square feet of trailer site space in the vicinity of Taxiway "B" on the West 

Ramp, South Airport, at $2,388.00 per month, effective October 1, 1994; and with Sierra 

Academy of Aeronautics, lnc., for 3,496 square feet of office space and non-exclusive use 

of 313 square feet of restrooms in Building L-105, North Airport, at $2,856.75 per month, 

effective August 15, 1994. The recommendation was approved on passage of Resolution No. 

94372. 

Modification of Purchase Agreement with Red and White Fleet for Barge was the 


Board that in December, 1993, the Board authorized a purchase agreement with the Harbor 

Tug and Barge Corporation, a division of the Crowley Maritime Corporation, for the 

purchase of a Red and White Fleet barge presently located between Kincaid's and Scott's 

restaurant. The barge will be used to support charter programs at Jack London Square; and 


Scott's Restaurant has expressed an interest in leasing and maintaining it for the purposes 

of developing a charter business. The purchase was not to be completed until Fiscal Year 

94-95. The purchase price in the amount of $200,000.00 is provided for in the Capital 

Improvement Program for this year. The agreed-upon purchase price was $150,000.00 plus 

interest since January 1994. In the December 1993 Board letter, the cost of the interest and 

the sales tax were not included. The amended amount to purchase the barge is as follows: 

Purchase Price - $138,568.12; Sales Tax - $11,431.88; Interest - $8,712.33; and with a Total 

of $158,712.33. It was recommended that the Board authorize the modification to purchase 

agreement and authorize the execution of the agreement. The recommendation was 


Recommended Approval of New License and Concession Agreement - Oakland 

Convention and Visitors Bureau was the subject of a memo to the Board from the Director 

of Commercial Real Estate recommending approval of a new agreement with the Oakland 

Convention and Visitors Bureau, for an information booth located under pavilion plaza on 

Broadway side, at $1.00 per year, effective June 1, 1994. The Bureau is provided free space 

in an existing information booth in Jack London Square and is staffing the booth with 

volunteers to provide information to the public about Oakland and Jack London Square 

everyday throughout the summer and on weekends year around. The recommendation was 


Resolution Adopting Certain Requirements of the Metropolitan Transportation 

Commission in Applying for ISILA Funding for the Joint Intermodal Terminal was the 

subject of a memo to the Board from the Director of Strategic & Policy Planning notifying 

the Board that the Port has previously applied for and been authorized funding through the 

Inter modal Surface Transportation Efficiency Act (IS'I EA) to provide preliminary 

engineering and environmental documents for the proposed Oakland Joint Intermodal 

Terminal. Applications for ESTEA funds are made through the Metropolitan Transportation 

Commission (MTC) acting as the local Metropolitan Planning Organization under IS I EA 

September 27, 1994 - 6

provisions. The Port has applied for an additional $7 million in funding from IS I LA in the 

FY 96-97 round of appropriations. As part of their application process MTC, requires a 

resolution from the Port providing that the Port shall provide at least 11.5% of the cost of 

the project in local matching funds; that the Port understands that STP/CMAQ Program 

funding is fixed at $7 million and that any additional cost increases for Phase I construction 

shall be funded from sources other than the MTC Transportation Improvement Program; 

that the JIT shall be built as described in the application and that funding is contingent 

upon the Port securing the necessary agreements from the participating railroads; and that 

the Port will advise MTC to remove the project from the program if the Port is unable to 

reach agreement with the participating railroads or otherwise be unable to continue with the 

project. It was recommended that the Board adopt the appropriate requirements. The 



Resources recommended the appointment of Kristi McKenney, as Associate Port 

Environmental Planner, effective October 10, 1994, at $4,174.00 per month; Frederick 

Randle, as Power Equipment Operator, effective September 28, 1994, at $3,946.00 per 

month; and Mukesh Bhatia, as Port Technical Support Analyst III, effective October 3, 1994, 

at $3,655.00 per month. Also recommended was approval for the special restricted 

examination for the Port-unique Civil Service classification of 'Equipment Systems 

Engineer"; medical leave of absences for Armando G. Curiel, Power Equipment Operator, 

for 68 working days through December 11, 1994; for Deborah E. Hill-Thomas, Intermediate 

Stenographer, for 67 working days through November 27, 1994; Dorothy L. Poston, 

Telephone Operator, for medical reasons, for 33 working days through November 21, 1994; 

and Doris J. Craig, Commercial Representative III-A, for medical reasons, for 25 working 

days through October 23, 1994. Additionally recommended was the terminations pursuant 

to the Memorandum of Understanding between the Port of Oakland and Local 790 - 

Airport Janitorial Program of May 7, 1985, of Ms. Loretta Alexander and Mr. Stevens B. 

September 27, 1994 - 7 -

Jackson, Relief Airport Custodians, effective the close of the work day of September 27, 

1994; and the termination of Ronald Jacobs, Relief Airport Custodian, for cause effective 

September 27, 1994. The recommendations were approved on passage of Resolution No. 

94377 for examination announcement; Resolution No. 94378 for leaves of absence; 

Resolution No. 94379 for terminations; and Resolution No. 94380 for Jacob's termination. 

Approval of the Preparation and Execution of an Agreement with High Line 

Corporation for Providing the Human Resources Information Systems and Services was the 

subject of a memo to the Board from the Director of Finance notifying the Board of the 

previous authority to waive formal competitive bidding procedures for acquiring the software 

and professional services necessary to replace the current system. Approximately 50 

potential suppliers of software and consulting services were contacted and invited to submit 

detailed responses to the RFP with three selected for in-depth review and evaluation. It was 

recommended that the Board approve the preparation and execution of an agreement with 

High Line Corporation for providing the stated software and services for an amount not to 

exceed $238,000.00. The recommendation was approved on passage of Resolution No. 

94381. 

Recommendation to Amend Ordinance No. 2263 Regarding Fees for Duplicating Port 

Records and Waiver or Reduction of Such Fees contained in a letter to the Board from the 

Port Attorney notifying the Board of a recent court decision limiting charges for providing 

copies of public records to the cost of running the copy machine, and the expense of the 

person operating it, and requiring the public agency to consider waivers or reductions in 

fees. The present Port policy abides by the California Public Records Act and Port 

Ordinance No. 2263 which provides that copies of public records shall be made available 

to any person upon request "upon payment of fees covering direct costs of duplication..." and 

provides that a public agency "may adopt requirements for itself which allow greater access 

to records than prescribed by the minimum standards set forth in this chapter"; and Port 

Ordinance No. 2263, adopted October 23, 1979, that provides for a reproduction charge of 


25 cents per page, except for large size documents which "the fee shall be established by the 

Secretary of the Board based upon the actual cost to the Port." After a full review and 

study of Port costs, it was concluded that the Port's 25 cents per page charge exceeds the 

mere cost of running a copy machine and the expense of the person operating it. However, 

it is just as clear that the 25 cents per page charge does not cover the so-called "ancillary" 

costs in actually searching for and preparing records for copying. In view of the recent court 

decision known as the North County decision, it was recommended that the 25 cents per 

page copying fee in Section 1(a)(1) of Port Ordinance No. 2263 be reduced to 19 cents per 

page. It was also recommended that Section 1(a)(4) of Port Ordinance No. 2263 be revised 

to emphasize that the Board has exercised its discretion under Section 6253.1 regarding 

waiver or reduction of fees and that, except for the public agency exemption, no waiver or 

reduction shall be allowed. The recommendation was approved on passage of an Ordinance 

to print. 

vote: 


Ayes: Commissioners Cole, Loh, Vohs and 

Noes: None 


Absent: Commissioners Kramer, Ortiz and President Lockhart - 3 


APPROVING AND AUTHORIZING EXECUTION OF EXTENSION 

AGREEMENT WITH AIRPORT PARKING MANAGEMENT OF OAKLAND." 


ACCEPTING GRANT OFFER OF THE UNITED STATES OF AMERICA AND 

AUTHORIZING EXECUTION OF GRANT AGREEMENT WITH THE 

FEDERAL AVIATION ADMINISTRATION UNDER PROJECT NO. 3-06-0170- 

17." 

September 27, 1994 - 9 -



SUPPLEMENTAL AGREEMENT WITH NATIONAL CAR RENTAL SYSTEM, 

INC." 




("RENEWAL AGREEMENTS") WITH 1) ANDY FRAIN SERVICES, INC., 2) 

ROBERT F. BROWN, 3) J.F. MCRAE AERO-CRAFT, INC., 4) SAVAGE 

MAGNETO SERVICE, AND 5) THOMAS HIRD DBA TRANS OCEAN 

AVIATION." 



AND CONCESSION AGREEMENT AND AGREEMENT TO RENEW LICENSE 

AND CONCESSION AGREEMENT WITH AIR TRANSPORT 

INTERNATIONAL ("ATI") AND RATIFYING AND APPROVING THE 

THIRTY-DAY TERMINATION NOTICE FOR ATI." 



AND CONCESSION AGREEMENTS WITH 1) BURLINGTON AIR EXPRESS, 

AND 2) SIERRA ACADEMY OF AERONAUTICS, INC." 


APPROVING AND AUTHORIZING THE EXECUTION OF A BARGE 

PURCHASE AND SALE AGREEMENT WITH THE RED AND WHITE FLEET, 

INC." 



AND CONCESSION AGREEMENT WITH OAKLAND CONVENTION AND 

VISITORS BUREAU." 


OFFERING TO MAKE COMMITMENT FOR INCLUDING PROPOSED JOINT- 

USE INTERMODAL TERMINAL IN METROPOLITAN TRANSPORTATION 

COMMISSION'S LIST OF ADOPTED PROJECTS IN THE SURFACE 

TRANSPORTATION PROGRAM OF ITS 1995 TRANSPORTATION 

IMPROVEMENT PROGRAM." 

"RESOLUI1ON NO. 94376 


September 27, 1994 - 10 -



EQUIPMENT SYSTEMS ENGINEER." 




I ERMINATING APPOINTMENTS OF LORETTA ALEXANDER AND 

S IEVENS B. JACKSON." 

"RESOLU 1 ION NO. 94380 

I ERMINATING APPOINTMENT OF RONALD A. JACOBS." 



HIGH LINE CORPORATION FOR COMPUTER CONSULTING SERVICES 





AUTHORIZING OAKLAND PORTSIDE ASSOCIATES 'TO PERFORM 



AUTHORIZING AMERICAN PRESIDENT LINES, LTD. TO PERFORM 


Port Ordinance No. 3235 being, "AN ORDINANCE. APPROVING AND 

AUTHORIZING EXECUTION OF AN AMENDMENT TO GRANT OF EASEMENT 

WITH CHEVRON U.S.A. INC. OR CHEVRON CORPORATION AND DIRECTING 


AUTHORIZING THE EXECUTION OF MANAGEMENT AGREEMENT WITH 

MARINE TERMINALS CORPORATION," and Port Ordinance No. 3237 being, "AN 

ORDINANCE APPROVING AND AUTHORIZING THE GRANT OF EASEMENT TO 

THE UNTIED STATES OF AMERICA AN EASEMENT FOR MOVEMENT OF NAVY 

SEWER LINE IN THE MIDDLE HARBOR AREA," and Port Ordinance No. 3238 being, 

September 27, 1994 - 11 -

"AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 CREATING ONE 

ADDITIONAL POSITION OF PORT TECHNICAL SUPPORT ANALYST III," were read 

a second time and passed by the following vote: 


Noes: None 

First 'Vice President Broussard 4 



ORDINANCE NO. 2263, ESTABLISHING FEES AND DEPOSIT FOR PROVIDING 

COPIES AND CERTIFYING COPIES OF PUBLIC RECORDS," were read a first time 

and passed to print by the following vote: 


Noes: None 

First Vice President roussard - 4 



entering into a conference with Labor Negotiators - Agency Negotiator: LED.A. - Employee 

Organization: Local 790, as provided for under Government Code Section 54957.6; a 

conference with Legal Counsel - Existing Litigation - Pursuant to subdivision (a) of 

Government Code Section 54956.9 - Name of case: Veltman v. State Lands Commission, 

Los Angeles Superior Court Case No. BC 11323; a conference with Legal Counsel - 

Anticipated Litigation - Significant exposure to litigation pursuant to subdivision (b) of 

Government Code Section 54956.7: One Case; and a conference with Real Property 

Negotiator - Pursuant to Government Code Section 54956.8, conference with Real Property 

Negotiator: Property - 10505 Doolittle Drive, Oakland, California, Negotiating Parties - 

Ransom/McKay Golf, Inc., Under Negotiation - Price and Terms of Payment. 

At the hour of 4:30 p.m. the Board reconvened in open session. 

September 27, 1994 - 12 -

vote: 



Noes: None 



°'RESOLUTION NO. 94384 

APPROVING APPRAISAL OF THE FAIR MARKET VALUE OF CERTAIN 

PROPERTY INTERESTS RELATING TO GALBRAITH GOLF COURSE, 

ESTABLISHING JUST COMPENSATION THEREFOR AND APPROVING THE 

EXECUTIVE DIRECTOR'S OFFER TO PURCHASE SAID PROPERTY 

IN' I ERESTS." 


ON THE PASSING OF HARRY LANGE." 

At the hour of 4:50 p.m. the meeting was adjourned in honor of and out of respect 

to the memory of the late Harry Lange, Former Port Commissioners, 1975-1979, on a 

motion duly made and seconded. 

September 27, 1994 - 13 - 

i2 





The regular meeting was held on Tuesday, October 4, 1994, at the hour of 3:10 p.m., 

in the office of the Board, second floor, 530 Water Street, Oakland, California, President 

Lockhart presiding, appropriate notice having been given and posted. 

Commissioners present: Broussard, Cole, Loh, Vohs and 

President Broussard - 5 

Commissioners absent: Kramer and Ortiz - 2 

Also present were the Deputy Executive Director; Assistant Port Attorney Thomas 

Clark; Director of Aviation; Director of Commercial Real Estate; Director of Human 

Resources; General Manager, Maritime Operations Department; Director of 

Communications; Director of Policy and Strategic Planning; Director of Finance; Director 

of Equal Opportunity; Chief Engineer; Chief of Planning; Media Relations Manager; and 

Secretary of the Board. 

The minutes of the regular meeting of September 20, 1994; regular meeting of 

September 6, 1994; and the adjourned regular meeting of September 27, 1994 were 

approved as submitted and ordered filed. 

Commissioner Cole, Chair of the Human Resources Committee, informed the 


Authorization to Enter into an Agreement with EBMUD for Design of Water Line 


Board that as a part of the reconstruction and realignment of Earhart Road, a 20-inch fire 

protection water line is being constructed to increase the amount of water available for fire 

protection for existing and future developments at the North Airport. The project requires 

installing about 1,350 feet of 16-inch water line from EBMUD's 20-inch line in Airport 

Drive to a new metering station. Since water lines up to the meter are the property of 

EBMUD, they must design, inspect, and provide the piping material for the 1,350-foot water

line extension. After construction, the water line extension must be turned over to EBMUD 

with an easement for the line. EBMUD is preparing an agreement for designing the 1,350- 

foot water line. Their price for the design, inspection, piping material, and service 

connection is $125,000.00. It was recommended that the Board authorize the execution of 

the agreement with EBMUD for the design, inspection, and providing piping material for 

the new EBMUD water line extension at the North Airport. The recommendation was 


Recommend Approval of Ordinance Extending the Lease Between the Port and 

Oakland Portside Associates Covering Approximately 17,000 square feet of Retail Space in 

the Washington Street Garage to a Thirty-Five Year Term was the subject of a memo to . the 

Board from the Director of Commercial Real Estate notifying the Board that the Port leases 

approximately 17,000 square feet of retail space for $1 per year to Oakland Portside 

Associates. The lease covers the space on the first floor of the four story garage adjacent 

to Embarcadero. The term of the lease was for a period of thirty years and has 

approximately 27 years remaining. In order to solidify our arrangement with the City of 

Oakland Redevelopment Agency for the $2,000,000.00 improvement contribution the term 

of this lease must be extended so that there will be at least thirty years at the 

commencement of the term of the new occupant. It was recommended that the Board 

approve a new lease of 35 years to satisfy the requirements. The recommendation was 

approved on passage of an ordinance to print. 

Modification of Port of Oakland Tariff 2-A Pertaining to Transferred and 

Transshipped Cargo was the subject of a memo to the Board from the Director of Maritime 

notifying the Board of the existing provisions for assessment of wharfage rates on transferred 

and transshipped cargo. Transferred cargo is moving by land vehicle from one terminal 

facility to another; and, transshipped cargo is discharged from a vessel and then relocated 

to another vessel at the same or another terminal. The rates are presently assessed on the 

basis of various rates depending on container size and commodity shipped. During the last 

October 4, 1994 - 2 -

year there has been a significant increase in the volume of transferred and transshipped 

cargo through Oakland as the international shipping lines which call at the Port continue 

to enter into more facility and vessel sharing alliances. In order to address those concerns, 

the California Association of Port Authorities (CAPA) has agreed to evaluate tariff 

provisions and rate levels pertaining to transferred and transshipped cargo. The CAPA 

evaluation is not scheduled for completion until the early part of next year and Oakland will 

be a major participant in the CAPA study. In the interim it was recommended that the 

Board approve the following modifications to the tariff: establish a specific rate of $120.00 

per twenty foot equivalent container unit for transferred and transshipped cargo thereby 

obliging the shipping line to report such activity under a specific tariff rate, with this rate 

based on the average of the four containerized wharfage rates for twenty foot containers in 

the existing tariff rate structure; and amend provisions pertaining to assessment of wharfage 

on empty containers. The tariff currently provides that water carrier owned or controlled 

containers are not to be assessed wharfage. The desired modifications will clarify the tariff 

by ensuring that transshipped empty containers moving under a water carrier Bill of Lading 

and assessed freight charges are assessed wharfage. The recommendation was approved on 

passage of an ordinance to print. 

Award of Contract for Construction of Gate Complex and 7th Street Modifications, 

Seventh Street Terminal, and Approval of Subcontractor Substitution was the subject of a 

memo to the Board from the Director of Engineering notifying the Board of the three bids 

received and recommending award of the contract to Gallagher & Burk, Inc., the low base 

bid at $2,584,186.00. The electrical subcontractor, Schwartz & Lindheim, Inc., submitted a 

written notice claiming a material clerical error was made in tabulating their bid, and 

pursuant to Public Contract Code 5100, requests that they be allowed to withdraw their bid 

without penalty, and that they will refuse to enter into a subcontract agreement. Gallagher 

& Burk, Inc. has requested that Willie Electric Co. be substituted for Schwartz & Lindheim, 

Inc. to perform the required work. There will be no increase to the total bid price as 

October 4, 1994 3

submitted by Gallagher & Burk. The recommendation was approved on passage of 


Approval of Plans and Specifications for Demolition of Building H-213, 375 8th 

Avenue, Inner Harbor was the subject of a memo to the Board from the Director of 

Engineering recommending their approval and authority to advertise for bids for the 

demolition of the building which is structurally unsafe and rehabilitation is infeasible. The 

project is categorically exempt and does not require the preparation of an environmental 

document. The recommendation was approved on passage of Resolution No. 94388. 

Approval of Plans and Specifications for Demolition of Building E-407A, Charles P. 

Howard Terminal and Extension of Time for Award was the subject of a memo to the Board 

from the Director of Engineering recommending their approval and authority to advertise 

for bids for the demolition and removal of Building E-407A down to the wharf, cutting 

and/or capping utilities and salvaging some electrical and mechanical items. The project 

is being evaluated in accordance with the Port's guidelines for the implementation of the 

California Environmental Quality Act as part of the Charles P. Howard Terminal Extension 

Environmental Impact Report. The Board will review and consider the Final EIR for 

certification at its October 18, 1994 meeting. At the same time, the Board will adopt 

mitigation measures designed to reduce identified adverse environmental impacts to less- 

than-significant levels. In the case of the demolition of the building, which has been 

determined eligible for individual listing on the National Register of Historic Places, the 

impact of demolition is identified as being Significant and Unavoidable. Prior to award of 

the contract, a Memorandum of Agreement will have to be developed with the Advisory 

Council on Historic Preservation, the State Historic Preservation Office and the Port of 

Oakland to clarify the Area of Potential Effect and to establish the level of documentation 

that will be required prior to demolition of the building. As the schedule for the 

development of the 306-foot wharf extension is tight, it is necessary to commence demolition 

of the building as soon as possible. However, award of any contract is dependent upon 

October 4, 1994 - 4 -

certification of the EIR, therefor the receipt of bids follows anticipated certification. If 

there is a problem or delay with certification of the EIR, then award of the contract will be 

delayed. Actual award of the demolition contract will be contingent on the Memorandum 

of Agreement and the receipt of permits from the San Francisco Bay Conservation and 

Development Commission, the United States Army Corps of Engineers and the City of 

Oakland Office of Planning and Building to cover any possible delay in certification and 

receipt of permits. The specifications for this project provide that the award may occur as 

late as 70 days after the opening of the bids. The recommendation was approved on 



Resources recommended the creation of one position of Port-unique classification of 

"Assistant to the General Manager, Marine terminals/Customer Service - Marine 

Commercial Representative V", at Salary Schedule 274.33; one position of Port-unique 

classification of "Strategic Marketing Supervisor - Marine Commercial Representative V", 

at Salary Schedule 274.33; one position of Port-unique classification of "Customer 

Service/Marketing Representative - Marine Commercial Representative II", at Salary 

Schedule 204.19; and one position of Port-unique classification of "Documentation and 

Statistics Analyst - Traffic Representative I", at Salary Schedule 229. The creation of the 

positions are in support of the reorganization of the Maritime Division. Also recommended 

was the Amendment of Salary Schedule Assignment for the Port-unique classification of 

"Trade Research Analyst -Marine Commercial Representative I", from Salary Schedule 

224.67 to Salary Schedule 229. Further recommended was the elimination of classifications 

and positions of Manager, Maritime Marketing (1 Position); Manager, Cargo Marketing 

Department (1 Position); Manager, Marine Marketing (1 Position); Trade Development 

Representative - Marine Commercial Representative IV (2 Positions); and Carrier 

Marketing Representative - Marine Commercial Representative IV (2 Positions). 

October 4, 1994 5

Messrs. Tim Chen and Yasuda Yamada, two Port employees whose positions were 

before the Board to be eliminated, appeared before the Board to state that they were only 

given two weeks notice of the reorganization and asked for more time to establish their 

options. They further noted that both were long time employees and felt that they were not 

treated with the respect they had earned. President Lockhart noted their concerns and 

expressed on behalf of the Board the necessity to reorganize and that the Port had to be 

more responsible to the financial well being of the Port. He further noted that the subject 

would be before the Board again at their meeting of October 18, 1994. 

The recommendations were approved on passage of an ordinance to print, with 

Commissioner Loh voting no. 

Declaring the Port's Official Intent to Reimburse Itself with the Proceeds of a Future 

Tax-Exempt Borrowing for Capital Expenditures Related to the 42-Foot Dredging Project 

under the Jurisdiction of the City and County of San Francisco and the City of Alameda 

was the subject of a memo to the Board from the Director of Finance notifying the Board 

that the Series E Revenue Bonds when issued in 1992 included the portion of the 42-foot 

dredging project under the Port of Oakland's jurisdiction as an eligible project. The Series 

E bonds did not, however, include the areas of the dredging project under the jurisdiction 

of the City and County of San Francisco and the City of Alameda. The ]Board should now 

declare the Port's official intent to use Port funds to finance the dredging project under the 

jurisdiction of the City and County of San Francisco and the City of Alameda and to 

reimburse itself later for these expenditures with the proceeds of a future tax-exempt 

financing. In anticipation of the issuance of a new tax-exempt borrowing for the 42-foot 

dredging project, the Board should adopt an inducement resolution. An inducement 

resolution declaring the intent of the Port to seek tax-exempt financing for this portion of 

the dredging project in an amount not to exceed $25 million would preserve the ability of 

the Port to recover monies expended on the project prior to issuance of tax-exempt debt. 

The inducement resolution does not commit the Board to issue the obligations, nor commit 

October 4, 1994 6

the Board to a specific type of financing. This amount covers approximately half of the 

Port's share of the entire dredging project as about fifty-percent of the dredging area is 

under the jurisdiction of these two agencies. It was recommended that the Board adopt an 

inducement resolution declaring the Port's official intent to issue obligations, not to exceed 

$25 million, to finance capital expenditures related to the 42-foot dredging project under the 

jurisdiction of the City and County of San Francisco and the City of Alameda, and declaring 

the Port's official intent with respect to IRS Reimbursement Regulations for such portion 

of the project. The recommendation was approved on passage of Resolution No. 94390. 

Recommended Change to Board By-Laws, Increased Purchase Order Limit was the 

subject of a memo to the oard from the Director of Engineering notifying the Board that 

the Oakland City Council passed an ordinance increasing the formal bid limit from 

$15,000.00 to $50,000.00 for the procurement of supplies, including materials, commodities, 

and equipment and services in support of materials and supplies contracts. The Council 

retained the $15,000.00 limit with regard to professional services agreements. The Port's 

Purchasing Ordinance #1606 simply references "the bid limit established by the Council" the 

City Council's action automatically applies to the Port. The By-Laws of the Board of Port 

Commissioners refer to Article XII, paragraph 9, to the old $15,000.00 limit and it was 

recommended that the By-Laws be amended to eliminate the reference to the $15,000.00 

bid limit and instead refer to the "bid limit established by the City Council." The 


vote: 


Ayes: Commissioners Broussard, Cole, Loh, Vohs 

Noes: None 


Absent: Commissioners Kramer and Ortiz - 2 


October 4, 1994 7

APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT WITH 

EAST BAY MUNICIPAL UTILITY DISTRICT (DESIGN OF WA'T'ER LINE)." 


AWARDING CONTRAC 1' TO GALLAGHER & BURK, INC., FOR 

CONSTRUCT I ION OF GA I E COMPLEX AND 7TH STREET MODIFICATIONS, 

SEVENTH STREET TERMINAL, OAKLAND, CALIFORNIA; FIXING THE 

AMOUNT OF BONDS TO BE PROVIDED IN CONNEC 110N THEREWITH; 

REJEC1'ING ALL OTHER BIDS; DIRECTING RETURN OF BID BONDS TO 

BIDDERS, AND AUTHORIZING SUBSTITUTION OF ELECTRICAL 

SUBCONTRACTORS." 


APPROVING PLANS AND SPECIFICATIONS FOR DEMOLITION OF 

BUILDING H-21:3, 375 8TH AVENUE, INNER HARBOR, OAKLAND, 



APPROVING PLANS AND SPECIFICATIONS IONS FOR DEMOLITION OF 

BUILDING E-407A, CHARLES P. HOWARD 'TERMINAL, OAKLAND, 



DECLARING THE BOARD OF PORT COMMISSIONERS OF THE CITY OF 

OAKLAND'S OFFICIAL INTENT TO REIMBURSE ITSELF WITH THE 

PROCEEDS OF A FUTURE TAX-EXEMPT BORROWING FOR CERTAIN 

CAPITAL EXPENDITURES FOR THE DREDGING OF THAT PORTION OF 

THE OAKLAND BAY AREA UNDER THE JURISDICTION OF THE CITY 

AND COUNTY OF SAN FRANCISCO AND THE CITY OF ALAMEDA BY THE 

PORT OF OAKLAND FOR WHICH MONEYS HAVE NOT BEEN, AND ARE 

NOT REASONABLY EXPECTED TO BE, ALLOCATED ON A LONG-TERM 

BASIS TO SUCH CAPITAL EXPENDITURES; IDENTIFYING SAID CAPITAL 

EXPENDITURES AND THE FUNDS TO BE USED FOR SUCH PAYMENT; 

PROVIDING FOR THE AVAILABILITY OF THIS RESOLUTION TO THE 

PUBLIC; AND PROVIDING CERTAIN OTHER MATTERS IN CONNECTION 

THEREWITH." 


AMENDING THE BY-LAWS AND ADMINISTRATIVE RULES OF THE 

BOARD OF PORT COMMISSIONERS RELATING TO THE PURCHASING 

AND CONTRACTING AUTHORITY OF THE EXECUTIVE DIRECTOR." 


GRANTING SOUTHWEST AIRLINES CO. PERMISSION TO PERFORM 

CERTAIN WORK" 

October 4, 1994 8


ORDINANCE NO. 2263, ESTABLISHING FEES AND DEPOSIT FOR PROVIDING 

COPIES AND CERTIFYING COPIES OF PUBLIC RECORDS," was read a second time 

and passed by the following vote: 

Ayes: Commissioners Broussard, Cole, ]Loh, Vohs 

Noes: None 




AUTHORIZING EXECUTION OF AMENDMENT TO BUILDING LEASE WITH 

OAKLAND PORTSIDE ASSOCIATES IN JACK LONDON SQUARE AND DIRECTING 

RECORDATION THEREOF," and Port Ordinance No. being, "AN ORDINANCE 

AMENDING PORT ORDINANCE 2833 RELATING TO WHARFAGE RULES AND 

REGULATIONS AND WHARFAGE, CONTAINERIZED CARGO," were read a first 

time and passed to print by the following vote: 


Noes: None 




ORDINANCE NO. 867 TO CREA1E NEW SALARY SCHEDULE NO. 240.19, TO 

CREA I E NEW POSITIONS IN THE PORTS MARITIME DIVISION AND AMENDING 

SEC. IION 11.028 TO REVISE THE SALARY SCHEDULE FOR THE POSITION OF 

TRADE RESEARCH ANALYST - MARINE COMMERCIAL REPRESENTATIVE I 

AND REPEALING SECTIONS 11.002, 11.0031, 11.0033, 11.009 AND 11.024 OF PORT 

ORDINANCE NO. 867 ELIMINATING CERTAIN POSITIONS IN THE PORTS 

MARITIME DIVISION." was read a first time and passed to print by the following vote: 

October 4, 1994 - 9 -

1 

Ayes: Commissioner Broussard, Cole, Vohs 


Noes: Commissioner Loh - 1 



entering into conference with Labor Negotiators - Agency Negotiator: LE.D.A. - Employee 

Organization: Local 790, Government Code Section 54957.6; and into conference with Legal 

Counsel from existing litigation, pursuant to subdivision (a) of Government Code Section 

54956.9, Name of Case: City of Oakland v. Bay Area Parking Company, et al., Alameda 

County Superior Court Case No. 701962-7, (Port Case No. 92-04-c). 

vote: 




Noes: None 




AUTHORIZING EXECUTION OF SETTLEMENT AGREEMENT WITH BAY 

AREA PARKING COMPANY. 

At the hour of 4:35 p.m. the meeting was adjourned to Tuesday, October 11, 1994, 

at the hour of 9:00 a.m. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The meeting was reconvened on Tuesday, October 11, 1994, at the hour of 9:08 a.m., 

in the office of the Board, second floor, 530 Water Street, Oakland, California. President 

Lockhart presiding appropriate notice having been given and posted. 

October 11, 1994 - 10 -




Also present were the Deputy Executive Director; Assistant Port Attorney Thomas' 

Clark; Director of Aviation; Director of Commercial Real Estate; Director of Human 

Resources; Director of Maritime; Director of Communications; Director of Policy and 

Strategic Planning; Director of Finance; Director of Equal Opportunity; Director of 

Engineering; Chief of Planning; Media Relations Manager; and Secretary of the Board. 

George P. Miller Hangar Renewal Earthquake Insurance was the subject of a memo 

to the Board from the Director of Human Resources notifying the Board of the George P. 

Miller Hangar Lease between the Port of Oakland and United Airlines, Inc., which permits 

the Port to place Earthquake and Flood Insurance on the improvements and gain 

reimbursement of premium costs from the lessee. This insurance was placed for a one year 

term on October 17, 1993. The Risk Management Department solicited and has received 

a renewal quotation and it was recommended that the Board authorize the insurance 

placement with an annual premium of $217,525.00. United Airlines will be responsible for 

$192,945.00 of the premium with the Port absorbing $24,580.00 for insuring the loss of rents 

and extra expenses to $3,000,000.00. The limit is $27 million with the following firms 

participating in the layered renewal: St. Paul Surplus; RLI; Westchester Specialty; 

Agricultural Insurance Company; Illinois Exchange; and Arkwright Mutual. The 


Recommendation to Adopt Resolution (Ordinance) of Necessity to Condemn Certain 

Property Interests of Howard Ransom, Hugh G. McKay. Howard Ransom Associates/Hugh 

G. McKay Associates and Ransom/McKay Golf. Inc. Under Concession Agreements for Use 

of Lew F. Galbraith Municipal Golf Course was the subject of a memo to the Board from 

the Director of Aviation notifying the Board of the 1965 Lease with the City of Oakland for 

the Port to construct and the City to operate and maintain the Lew F. Galbraith Municipal 

October 11, 1994 - 11 -

Golf Course. In 1982, the City entered into a Concession Agreement with Howard Ransom 

Associates/Hugh G. McKay Associates, a general partnership to operate the Course. The 

Partnership's successor, Ransom/McKay Golf, Inc. and the City entered into an Interim 

Concession Agreement dated June 30, 1992. The Interim Agreement provides that the 1982 

Concession Agreement is terminated effective June 30, 1992. The Interim Agreement also 

provides that its term is July 1, 1992, through September 30, 1992, that there is not an 

option to extend or renew the Interim Agreement beyond September 30,, 1992 and that the 

Interim Agreement shall terminate automatically on September 30, 1992, unless earlier 

terminated. When the term of the Interim Agreement ended on September 30, 1992, the 

City notified the Corporation that it consented to the Corporation holding over a month-to- 

month basis beginning October 1, 1992. The Port secured an appraisal of the month-to- 

month interest under the Interim Agreement and the Board approved the appraisal and 

established $20,000.00 as just compensation for that interest. The Port made a written offer 

to the Partnership, the Corporation and Mr. Howard Ransom and Mr. G. McKay for 

$20,000.00. The written offer stated that the Course is necessary as a disposal area for 

materials dredged as a part of the Oakland Harbor Navigation Improvement Project. The 

Port also gave Ransom/McKay written notice that the Board intends to consider adoption 

of a Resolution of Necessity to acquire by eminent domain any and all interest that all or 

either of them may have in the Course. The Charter requires that the Resolution of 

Necessity be adopted by ordinance, and that final action on the ordinance may not be taken 

until after a first reading and publication of the proposed ordinance in the official 

newspaper of the City. The notice stated that first reading of the ordinance would be 

considered on October 11, 1994, at 9:00 a.m., and that the Board would conduct a public 

hearing on October 18, 1994, at 3:00 p.m. to consider adopting the ordinance. The notice 

stated that Ransom/McKay has the right to appear at the October 18 public hearing and 

be heard ont he following matters: whether public interest and necessity require the project; 

whether the project is planned or located in the manner that will be compatible with the 

October 11, 1994 

- 12 -

greatest public good and the least private injury; whether the property sought to be acquired 

is necessary for the project; and whether the offer required by Government Code Section 

7267.2 has been made to the owner of the property and/or other interests being acquired. 

The notice stated that if Ransom/McKay wish to appear and be heard at the October 18 

hearing, they must file a written request with the Port of Oakland within fifteen days after 

the date the notice was mailed, and that if they fail to file a written request to appear and 

be heard within fifteen days of the date the notice was mailed, they will waive their rights 

to appear and be heard on the matter. The property interests to be acquired are whatever 

property interests Ransom/McKay may have by virtue of the 1982 Concession Agreements 

and the 1992 Interim Agreement with the City of Oakland. The Course is located at 10505 

Doolittle Drive, Oakland, California. The Course consists of land originally leased in 1965 

by the Port to the City, approximately 169 acres, as reduced by approximately 2.13 acres 

pursuant to the July 1, 1972, First Supplemental Agreement to the 1965 Lease. The 

interests of Ransom/McKay are proposed to be acquired for a public use that consists of 

providing a dredged material disposal area for materials to be dredged as a part of the 

Oakland Harbor Navigation Improvement Project. The Project is authorized in Section 202 

of the federal Water Resources Development Act of 1986. The Port will be a "non-Federal 

interest" under WRDA 1986 and the non-Federal interests must agree to provide to the 

Federal Government necessary dredged material disposal areas. The Board's authority to 

acquire the subject interests includes Sections 106, 706(6), 706(15, 706(19), 706(29) and 

706(30) of the Charter of the City of Oakland and authority also provided under California 

Government Code Sections 39901, 39961 and 40404, and Title 7, Part 3 of the California 

Code of Civil Procedure. The purpose of the Project is to accommodate the larger ships 

that operate in the international trade. Implementation of the proposed Project will enable 

the Port to more efficiently accommodate larger vessels, thus maintaining and potentially 

increasing the volume of cargo shipped through the Port. The Project consists of the 

deepening of the Oakland Inner and Outer Harbor channels and eight adjacent berths to 

October 11, 1994 - 13 -

the authorized depth of -42 feet to accommodate deep-draft ships. An estimated 6.6 million 

cubic yards of sediments will be excavated from the Harbor channels and berthing areas. 

The Board on September 13, 1994, certified its review and consideration of the Final 

Supplemental Environmental Impact Report/Environmental Impact Statement Oakland 

Harbor Deep-Draft Navigation Improvements that was prepared jointly by the Port and the 

United States Army Corps of Engineers. The FSEIR/S explains there are no practicable 

alternatives to disposal of approximately 1.2 million cubic yards at the Course. The 

FSEIR/S concludes that there are no feasible alternatives to the proposed use of the Course 

for disposal of the approximately 1.2 million cubic yards of dredged material from the 

project. Accordingly, it is recommended that the Board find that the proposed Project, with 

respect to disposal of dredged material, is planned and located in the manner which will be 

most compatible with the greatest public good and the least private injury. It was 

recommended that the Board pass to print an ordinance (Resolution of Necessity) which 

contains all of the following: A general statement of the public use for which the property 

is to be taken and a reference to the statutes and legal authority that authorize the Port to 

acquire the property by eminent domain; a description of the general location and extent 

of the property to be taken, with sufficient detail for reasonable identification; a declaration 

that the Board has found and determined each of the following: (a) the public interest and 

necessity require the proposed project; (b) the proposed project is planned or located in the 

manner that will be most compatible with the greatest public good and the least private 

injury; (c) the property described in the ordinance is necessary for the proposed project; and 

(d) the offer required by law has been made to the owners of record; and give authorization 

to the Port Attorney to file and prosecute to final judgment a proceeding in eminent domain 

to acquire the interests of Ransom/McKay, to deposit in court the amount of compensation 

established by the Board as just compensation and to apply to the court for an order 

permitting the Port to take immediate possession and use of the Course for the above- 


- 14 -

described public uses and purposes. The recommendation was approved on passage of an 



Ayes: Broussard, Cole, Kramer, Loh, Ortiz, Vohs and 

Noes: None 

Absent: None 



AUTHORIZING GEORGE P. MILLER HANGAR RENEWAL EARTHQUAKE 

INSURANCE." 

Port Ordinance No. being, "AN ORDINANCE FINDING AND 

DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY REQUIRE THE 

ACQUISMON OF THE PROPERTY INTERESTS OF HOWARD RANSOM, HUGH 

G. MCKAY, HOWARD RANSOM ASSOCIATES/HUGH G. MCKAY ASSOCIATES 

AND RANSOM/MCKAY GOLF, INC. UNDER CONCESSION AGREEMENTS TO 

OPERA E A GOLF FACILITY AT THE LEW F. GALBRAITH MUNICIPAL GOT F 

COURSE, MAKING OTHER FINDINGS AND DETERMINATIONS IN CONNECTION 

THEREWITH, AND AUTHORIZING THE FILING OF PROCEEDINGS IN 

CONDEMNATION FOR THE ACQUISITION THEREOF," was read a first time and 


seconded. 

Ayes: Broussard, Cole, Kramer, Loh, Ortiz, Vohs and 

Noes: None 

Absent: None 


At the hour of 9:15 a.m. the meeting was adjourned on a motion duly made and 

October 11, 1994 - 15 -




The regular meeting was held on Tuesday, October 18, 1994, at the hour of 3:05 p.m., 

in the office of the Board, second floor, 530 Water Street, Oakland, California, President 

Lockhart presiding, appropriate notice having been given and posted. An infoilual portion 

was held prior to the meeting during which time the Board received an update on the 

Waterfront Planning Study which is a joint effort between the City Planning Commission 

and the Port. 

Commissioners present: Broussard, Cole, Kramer, Loh, Ortiz 




Assistant Port Attorney Thomas Clark; Director of Aviation; Director of Commercial Real 

Estate; Director of Human Resources; Director of Maritime; Director of Communications; 

Director of Policy and Strategic Planning; Manager, Management Information Systems; 

Director of Equal Opportunity; Director of Engineering; Chief Engineer; Chief of Planning; 

Media Relations Manager; and Secretary of the Board. 

The minutes of the regular meeting of October 4, 1994; and the adjourned regular 

meeting of October 11, 1994 were approved as submitted and ordered filed. 



Commissioner Ortiz, Chair of the Customer Employment and Business Resources 


agenda. 


that the committee had met and reviewed their current agenda.

Commissioner Cole, Chair of the Human Resources Committee, informed the 




Approval of Third Supplemental Agreement with P & D Aviation for Airport 

Development Program Statement of Purpose and Needs was the subject of a memo to the 

Board from the Director of Engineering notifying the Board of the agreement with P&D 

Aviation for aviation planning services in support of the "2002 Airport Development 

Program" (2002 ADP). This authorization included work required to develop a "Statement 

of Purpose of Need" which provides the background and justification for the projects to be 

evaluated in the requisite environmental assessments. Since the initial agreement, the Board 

has authorized preparation and execution of two supplemental agreements to expand P&D's 

work based on joint determinations by the Port and the FAA that it was necessary to further 

define alternatives to the ADP program. This is required by state and federal regulations 

governing the preparation of EIRs and EISs, and has been completed. The current 

authorized maximum is $380,600.00. During recent meetings with the FAA, it was 

concluded that the proposed Airport Development Program should be accelerated because 

of the rapid growth of the Airport. As a result, much of P&D's technical analysis 

documenting the need for the projects must be current to demonstrate the need to develop 

the projects earlier than anticipated. In addition, the FAA required that the Port provide 

additional rationale and explanation of how aircraft operations might change with different 

alternatives to the projects. It was recommended that the Board authorize a third 

supplemental agreement with P&D for providing professional services for $20,000.00 with 

certain additional funds available at the discretion of the Executive Director. The firm will 

be compensated at agreed billing rates to a maximum compensation of $20,000.00 which 

brings the total authorized maximum to $400,600.00. The recommendation was approved 



-2-

Approval of Fourth Supplemental Agreement with ESA. Inc. for Preparation of 

Environmental Documentation for the Airport Development Program EIR/EIS was the 


contract with Environmental Science Associates, Inc. for preparation of an EIR/EIS for the 

Oakland Airport Master Plan Update. Originally executed in 1988, the project has been 

substantially changed and re-titled as the Airport Development Program, and at the request 

of the FAA, also extensively revised to incorporate the evaluation of the Airport Roadway 

Project. The current not-to-exceed maximum compensation for ESA as authorized by 

existing agreements is $1,000,000.00. As a result of Port-FAA review of the first 

Administrative Draft EIR/EIS in April and May, new issues and tasks were identified that 

required resolution. In addition, due to accelerated air passenger growth at the Airport, the 

analysis years will be amended to be consistent with current Airport forecasts and the FAA 

requested that the ADP horizon year (for completion of project) be amended from 2002 to 

2000. Based on a Supplemental Work Program submitted by ESA, the Port has negotiated 

an additional cost of $200,000.00 to complete the ADP through to the Final EIR/EIS. It 

was recommended that the Board authorize a fourth supplemental agreement with ESA for 

environmental documentation on the Airport Development Program. The firm will be 

compensated $200,000.00 with certain additional work available at the discretion of the 

Executive Director. The new authorized maximum payment is $1,200,000.00. After 

discussion, the recommendation was approved on passage of Resolution No. 94396. 

Plans and Specifications for Reconstruction of Access Ramps Connecting Terminal 

1. Buildings (M-101/M-102 and M-102/M-103), South Airport, MOIA was the subject of 

a memo to the Board from the Director of Engineering recommending their approval and 

authority to advertise for bids for the work. The project consists of reconstructing the two 

sets of access ramps connecting Terminal 1 buildings to conform with the ADA accessibility 

requirements and other related upgrades and improvements in the terminal. These include 

the widening of the international holdroom, the reconfiguration of M-102 restrooms, the 


- 3 -

elocation of the security check point, the addition of an exterior elevator at M-102/M-103, 

updating the M-101 restrooms, and removal of asbestos from the project work areas of 

Buildings M-101, M-102 and M-103. The recommendation was approved on passage of 


Plans and Specifications for Removal of Waste Oil Storage Tank MF-18, Building 

M-105, MOIA was the subject of a memo to the Board from the Director of Engineering 

recommending their approval and authority to advertise for bids for the work. The project 

includes the removal of the 550 gallon underground waste oil storage tank as required under 

the state program for closure of single-wall steel tanks. A new above-ground waste oil 

storage tank will be installed later. The recommendation was approved on passage of 


Approval of Supplemental Agreement to Contract for Design, Furnish and Maintain 

an Aircraft Noise Monitoring System was the subject of a memo to the Board from the 

Director of Engineering notifying the Board of the contract with Larson-Davis, Inc., for 

designing, furnishing and maintaining an aircraft noise monitoring system at the Airport. 

The work consists of designing the Aircraft Noise Monitoring System and preparing 

installation plans; furnishing the data processing computer, noise monitoring equipment; 

furnishing five additional remote monitoring terminal units that will be installed under a 

separate construction contract and maintaining the system for three years. The contract 

provides that all contract work, except for the maintenance work, was to be completed by 

August 18, 1994. The Port must obtain easements from the property owners and secure 

service agreements with utility companies before the locations of the additional remote 

monitoring terminal units can be finalized. At this time, the Port is still in the process of 

obtaining the easements and securing service agreements. In addition, the delivery of the 

Flight Track Data Acquisition System is dependent on the Port reaching two agreements 

with the Federal Aviation Administration. As the delay in completing the work is beyond 

the control of the contractor, it was recommended that the Board authorize a supplemental 


- 4 -

agreement providing for a revised contract extension of one year at no extra direct or 

indirect cost. The recommendation was approved on passage of Resolution No. 94399. 


of One Year or Less with Solomon Ente i rises dba Pilots' Coma uter Aviation Tech and 

American Airlines, Inc. was the subject of a memo to the Board from the Director of 

Aviation recommending approval to renew the agreements with Solomon Enterprises dba 

Pilots' Computer Aviation Tech, for 370 square feet of office space, 77 square feet of land 

under shed, 399 square feet of paved land and 2,015 square feet of apron area in and 

adjacent to Building L-142, North Airport, at $498.87 per month, effective October 1, 1994; 

American Airlines, Inc., for 564 square feet of vehicle maintenance bay in Building M-128, 

South Airport, at $423.00 per month, effective February 1, 1994; and with American 

Airlines, for a 403 square foot ticket counter, a 722 square foot office, and 1,848 square feet 

of bag make-up in Building M-101; 1,798 square feet of operations office space in Building 

M-103, and 720 square feet of trailer parking adjacent to M-103, South Airport, at 

$24,386.63 per month, effective January 1, 1994. The recommendation was approved on 


Authorization to Purchase One Used Cargo Loader was the subject of a memo to the 

Board from the Director of Engineering notifying the Board that the Aviation Division has 

requested the purchase of a cargo loader capable of handling wide-body aircraft. The intent 

is to provide the means to attract new cargo business, especially international carriers, to 

the Airport. The loader would enhance the Oakland Airport's position as a major air cargo 

terminal and lead to increased landing fees, aircraft parking and ground-handling fees. The 

staff has reviewed several used cargo loaders, and it was recommended that the Board 

authorize the purchase of one used Cochran Western cargo loader at a total cost of 

approximately $110,000.00. The unit under consideration for purchase is located in Detroit, 

Michigan. The seller, Creg International, has agreed to sell the unit pending satisfactory 

inspection. The recommendation was approved on passage of Resolution No. 94401. 

October 18, 1994

At the hour of 3:10 p.m. the Board held a Public Hearing on the Recommendation 

to Adopt a Resolution of Necessity (Ordinance) to Condemn Certain Property Interests of 

Howard Ransom, Hugh G. McKay, Howard Ransom Associates/Hugh G. McKay Associates 

and Ransom/McKay Golf, Inc. under Concession Agreements for Use of Lew F. Galbraith 

Municipal Golf Course. The first reading of the Resolution of Necessity (Ordinance) was 

held on Tuesday, October 11, 1994. The basic purpose of the condemnation is to acquire 

the golf course at the Airport for the disposal of appropriate dredged materials from the 

channel deepening project. The Board at its meeting of October 11, 1994 approved: a 

general statement of the public use for which the property is to be taken and a reference 

to the statutes and legal authority that authorize the Port to acquire the property by eminent 

domain; a description of the general location and extent of the property to be taken, with 

sufficient detail for reasonable identification; a declaration that the Board has found and 

determined each of the following: (1) the public interest and necessity require the proposed 

project; (2) the proposed project is planned or located in the manner that will be most 

compatible with the greatest public good and the least private injury; (3) the property 

described in the ordinance is necessary for the proposed project; and (4) the offer required 

by law has been made to the owners of record; and authorized the Port Attorney to file and 

prosecute to final judgment a proceeding in eminent domain to acquire the interests of 

Ransom/McKay, to deposit in court the amount of compensation established by the Board 

as just compensation and to apply to the court for an order permitting the Port to take 

immediate possession and use of the Course for the above-described public uses and 

purposes. 

Mr. Andrew Cohn, the attorney representing the Ransom/McKay interests, appeared 

before the Board to note that he felt that there were conflicts with the environmental report, 

and with the Port sponsored job outreach for the golf course employees; a better study for 

a joint use of the area could be made; and he noted that the offer of compensation by the 

Port was too low. 

October 18, 1994 - 6 -

At the hour of 3:16 p.m. the hearing was closed and the recommendation was 

approved on final passage of the ordinance. 

Ratification of Emergency Action and Approval to Dispense with Formal Bids, 

Dredging Berths 24 and 25, Outer Harbor Terminal was the subject of a memo to the 

Board from the Director of Engineering notifying the Board that excessive siltation and 

minimal depth tolerances frequently cause rapid build up of silt in a number of the marine 

terminal berths. There currently exists a large shoal consisting of approximately 10,000 

cubic yards of sediment at Berth 24. Maersk Lines, the tenant at Berth 24, cannot operate 

over the shoal and in order to allow Maersk Lines to continue to call at their terminal in 

Oakland, Maersk agreed that if an adjacent portion of Berth 25 were deepened to its 

maximum permitted depth, the Maersk ships could temporarily dock half in Berth 24 and 

half in Berth 25. This temporary berthing arrangement is inconvenient and provides two 

feet shallower water that is required for a full Maersk ship. The Chief Engineer, after 

determining that an emergency existed, directed Dutra Construction Company to perform 

the emergency dredging of Berth 25 on a time and materials basis under a change order to 

their existing contract with the Port for maintenance dredging. The cost to perform the 

dredging was $83,420.00. It is still necessary to perform the dredging to remove the shoal 

at Berth 24 as quickly as possible. A permit to dredge Berth 24, to dispose of the unsuitable 

portion of the material on land and to dispose of the remainder at the Alcatraz Disposal site 

has been applied for and is expected to be issued this month. In order to accomplish the 

work as quickly as possible it is proposed to dispense with formal bidding procedures and 

to issue an additional change order to Dutra Construction Company under their existing 

contract. The dredging of Berth 24 and associated site work required for the upland 

disposal is estimated to cost approximately $125,000.00. It was recommended that the Board 

ratify the emergency action taken to dredge Berth 25 and find it to be in the best interest 

of the Port to dispense with formal bidding procedures to accomplish the work of dredging 

the shoal at Berth 24 through a change order with Dutra. Construction Company, Inc. under 


- 7 -

their present contract with Port. The recommendation was approved on passage of 


Certification of the Final Environmental Impact Report for the Charles P. 

Howard Terminal Wharf Extension Project. Findings Concerning Significant Effects of the 

Project, Adoption of Mitigation Measures for the Project. Adoption of the Mitigation 

Monitoring Program, Statement of Over-riding Considerations for the Unavoidable Adverse 

Historical and Visual Resource Impacts and Air Ouality Impacts was the subject of a memo 

to the Board from the Director of Engineering recommending approval of the EIR for the 

project which is to provide a second berth for new-generation container vessels and an 

efficient terminal space for handling cargo from two vessels at once. The Port has a 

pressing need for more wharf, crane rail length, and contiguous backland. The planning and 

environmental evaluation for the wharf extension/yard expansion were undertaken late last 

year. The Port contracted with Brady and Associates to prepare the Environmental Impact 

Report in compliance with the California Environmental Quality Act. The Draft EIR 

(DEIR) was circulated and public comment received. Responsive changes have been made 

to the DEIR and all comments have been addressed in the Final EIR. The project would 

have some significant impacts although most of those impacts can be mitigated to less than 

significant. Findings of over-riding consideration have been developed for the balance of 

the significant impacts. The Charles P. Howard Terminal Extension project includes: 

constructing of dewatering/transfer facility at Berth 10; demolition of a derelict wharf 

structure at the old Sherex site east of Berth 63; demolition of derelict wharf structures at 

the former Pacific Dry Dock site east of Lake Merritt Channel; demolition of Building 

E407-A; demolition of the old wharf (Berth 69); dredging for dike construction; dredging 

for Berth 68 extension to -42' MLLW; dredging for fill behind the dike by deepening Berths 

22, 23, 24, 25, 26, 30, 67 and 68 to -44' MLLW; filling behind the dike with suitable dredged 

material; transporting and dewatering unsuitable dredged material at Berth 10; transferring 

and trucking unsuitable materials from Berth 10 to approved upland disposal sites; 

October 18, 1994 - 8 -

constructing a perimeter dike; constructing 306 lineal feet of pile supported wharf with crane 

rails; paving, lighting and striping the yard area; constructing new public access immediately 

south of Shenanigans at Jack London Village; redeveloping the foot of Alice Street to create 

a more attractive and useful area for public enjoyment; enhancing the area of the existing 

path between Alice Street and KTVU to provide shade, seating areas and access to the 

gravel beach; and providing signage on the FDR Fishing Pier to explain the workings of a 

modern container terminal which will be the dominant view from the pier, and to explain 

the history of the Grove Street Pier and the early development of the Port of Oakland. The 

EIR documents indicate that the normally expected significant adverse impacts could 

potentially occur through implementation of the proposed project which include noise, dust, 

other air borne pollutants, debris or wastes from the construction. The DEIR was mailed 

to 118 agencies, groups and individuals and the Notice of Availability was mailed to 

approximately 120 members of the public for review in June, 1994. No comments were 

made at the public hearing on the DEIR. Ten comment letters were received and are 

included in Chapters 3 and 4 of the FEIR. All issues were addressed and, where 

appropriate changes were made in the text of the DEIR. All the potentially significant 

adverse impacts can feasibly be mitigated to levels that are less than significant through 

implementation of the mitigation measures included in the Mitigation Monitoring Program 

with the following exceptions: demolition of the transit shed would destroy the Grove Street 

Pier, an historic resource, potentially eligible for inclusion on the National Register of 

Historic Places; removal of the transit shed would, for visitors to the waterfront and Jack 

London Square and for the occupants of the nearby buildings, change an aesthetically 

pleasing architectural view to an industrial view; and construction related and operational 

equipment emission will further contribute to the regional non-compliance for precursors 

to ozone and other pollutants. A statement of over-riding considerations has been prepared 

which notes that the project's contributions to the environmental health of the Bay Area and 

the attainment of optimization of terminal capacity outweigh the significant impacts that 

October 18, 1994 - 9 -

cannot be mitigated. It was recommended that the Board certify that it has reviewed and 

considered the information contained in the D/FEIR of the Charles P. Howard Terminal 

Extension, and that it has been prepared in compliance with CEQA, the State CEQA 

Guidelines and the Port CEQA Guidelines; find that the mitigation measures as listed in 

Attachment A and Chapter V of the FEIR will avoid or substantially lessen the significant 

environmental effects identified in the D/FEIR except for the demolition of the building 

and the air quality emissions during construction and operation of the terminal extension; 

adopt the mitigation measures and mitigation responsibilities as listed in Attachment A and 

Chapter V of the FEIR and incorporate them into the project to reduce potential significant 

impacts and to record the architecture and history of Grove Street Pier and the Port; adopt 

a statement of over-riding considerations that the economic and environmental benefits of 

the proposed project outweigh the unavoidable adverse air quality and historic resource 

impacts; and find that the D/FEIR reflects the independent judgement of the Board. 

Ms. Marina Carlson from City Councilperson Mary Moore's office, appeared before 

the Board to ask for more study to provide for open space and public access within the Port 

area. She noted that there would be additional public access as a result of the Howard 

Terminal project, however she asked that a more comprehensive plan be prepared. 

President Lockhart replied that a larger study was being done, known as the Wateifiont 

Planning Study, and if feasible more access would be developed. 


Amendment to Agreement Between the Navy. Port. and PG&E for Construction of 

Electric Power Lines was the subject of a memo to the Board from the Director of 

Engineering notifying the l3oard that in 1991, the Board approved execution of a Special 

Facility Agreement between the U.S. Navy, PG&E, and the Port for construction of the 115 

kilovolt electrical transmission line from Second and Castro Streets to a site on Navy 

property at Outer Harbor to provide additional power for Port cranes in the Outer Harbor 

and Seventh Street Terminals and for the Navy's facilities. The line, under PUC regulations, 


- 10 -

is owned by PG&E, but the construction cost was to be paid for by the Port (41%) and the 

Navy (59%). The Port's 41% share of the estimated construction cost was $1,654,708.00, 

which amount was paid to PG&E. In addition, the Port and Navy each donated easements 

within their respective properties for construction of the line. The Port also relocated 

several light poles in Howard Terminal to accommodate the 115 KV line. The new line has 

excess capacity beyond the forecasted future loads of the Port and Navy. EBMUD requires 

additional power for their main wastewater treatment plan in Oakland (near the Bay 

Bridge) and has been negotiating with the Port, the Navy, and PG&E to buy 32.37% of the 

total capacity of the 115 KV line. This would leave the Port with 27.75%, and the Navy 

with 39.88% of the capacity of the line. EBMUD has agreed to pay their share of the total 

construction cost and will pay to the Port about $390,000.00 for the reduction of the Port's 

transmission line ownership from 41% to 27.75%. In addition, EBMUD will reimburse the 

Port and the Navy a prorated share of the cost of the donated easements and the costs for 

relocating light poles in Howard Tee mina' to allow construction of the 115 KV transmission 

line. EBMUD will pay to the Port $137,368.00 under this proposal. It was recommended 

that the Board authorize an amendment to the Agreement between the Navy, the Port, and 

PG&E for "Installation and Allocation of Special Facilities" providing for their participation 

in the project; and a second Agreement for EBMUD reimbursing the Department of Navy 

and the Port of Oakland for a prorated share of donated easements and costs for relocating 

light poles in Howard Terminal. The recommendation was approved on passage of 


Authorization for Professional Services for Recording of Historicall Properties Prior 

to Irreversible Alteration of Facilities in the 220 Acre Navy FISCO (NSCO) Lease Area was 

the subject of a memo to the Board from the Director of Maritime notifying the Board that 

the Port and Navy signed a Memorandum of Understanding concerning the lease of 

property no longer needed for the Navy's Fleet and Industrial Center's mission and on June 

3, 1994, the Navy, via a license agreement, turned over the first 76 acres to the Port. On 

October 18, 1994 - 11 -

October 5, 1990, the California Historic Preservation Officer determined that the entire 541 

acres of FISC was eligible for listing, as a Historic District, in the National Register of 

Historic Places. As a consequence, any modification of the properties on FISC are subject 

to requirements of the National Historic Preservation Act. The NHPA requires that a 

record be made of the appearance, construction plans, and other aspects of FISC structures 

and facilities considered essential to establishing a permanent historical record, before any 

action having an adverse effect can proceed. A lease giving the Port possessory interest, 

including full discretion to demolish structures and make over irreversible changes to 

properties in the Historic District can not be finalized until the requirements of the National 

Hisitoric Preservation Act, the National Environmental Quality Act and the California 

Environmental Quality Act have been satisfied. Under the license agreement with the Navy, 

no irreversible changes can be made until the NHPA historical recording requirements have 

been satisfied. The form and substance of a Recording satisfactory for inclusion in the 

Register, archived in the Library of Congress, is rigidly prescribed. Consequently, producing 

a satisfactory record requires specialized equipment, skills, and experience. The Port hired 

an Oakland, environmental professional services firm, Lamphier and Associates, to prepare 

the chapter on historic resources and issues in the Draft EIR/EIS for the ]FISCO Lease and 

Development Project and to participate in historical impact mitigation measure negotiations 

with the Oakland Landmarks Board. It was recommended that the Board authorize a 

contract with Lamphier and Associates for a cost not to exceed $50,000.00 to arrange for 

and manage the required NHPA Recording. The recommendation was approved on passage 


Approval of Work Performed and Authorization for Additional Work to be 

Performed by the Navy Public Works Center to Provide Utility Services for New Port 

Tenants Within the 76-Acre Parcel Under License Agreement in the 220-Acre Navy FISCO 

(NSCO1 Lease Area was the subject of a memo to the Board from the Director of Maritime 

notifying the Board that the Port now has possession of 75.42 acres of the Navy's Fleet and 


- 12 -

Industrial Supply Center under a license agreement. The Port has moved quickly to find 

short term tenants for this area in order to create jobs, fill the needs of shipping line 

customers, and generate revenue. These tenants require separate telephone, power, water 

and sewer utilities as well as such services as street sweeping and emergency response. The 

Navy Public Works Center has had the responsibility of maintaining and modifying the 

utilities at the Center. As part of the overall Supply Center Lease, Navy Public Works has 

performed utility work and is currently installing back flow preventors for the Port's part of 

the water system at a cost of $33,000.00. The Port also used PWC to install utilities at a 

new Navy guard house that was relocated so that Port tenants and their customers can 

access the Port license area without disrupting Naval security processes. A number of 

additional tasks for PWC are anticipated which include: power poles and transformers to 

bring telephone and interim Naval electric service to new trucking company tenants within 

the license area at a cost of $32,000.00; utility modifications such as new water and sewer 

hookups will be needed; street sweeping and weed abatement as required; inspection and 

maintenance of sprinkler systems and flushing of fire hydrants must be done on a regular 

basis; and responses to such emergencies as broken water mains or blocked drainage 

systems. It was recommended that the Board approve payment to Navy Public Works 

Center the sum of $17,000.00 for utility work and $32,000.00 for the placement of utility 

poles and an amount not to exceed $150,000.00 during the Fiscal Year 1994/95 for 

miscellaneous utility installation, maintenance, and related services. The recommendation 


Plans and Specifications for 1995 Structural Inspection and Repair of Paceco Cranes 

X411 and X412, Berths 25 and 26, Outer Harbor Terminal was the subject of a memo to 

the Board from the Director of Engineering recommending their approval and authority to 

advertise for bids. The work consists, in general, of providing mobile cranes, rigging, and 

scaffolding required to gain access to test the welded and bolted joints on the container 

cranes. The work also includes preparing welded joints for non-destructive test inspection 

October 18, 1994 - 13 -

y removing paint, removing and replacing any defective welds found, and touch-up painting 

of the tested/repaired areas. The project is categorically exempt and does not require the 



Approval of Building Permit Application for the Marine Terminals Corporation 

Administration Building Construction. 7th Street Terminal, 5190 - 7th Street was the 

subject of a memo to the Board from the Director of Engineering recommending approval 

for the construction of a new administration building near the entrance to the 7th Street 

Terminal. The proposed building is 3 stories with a total of 11,800 square feet. The work 

includes all electrical, plumbing and mechanical work and connections to existing utilities. 

The estimated cost of the proposed work is $1,300,000.00. The project was reviewed by the 

Environmental Department as part of the 7th Street Gate Complex project, and has been 

etermined to be categorically exempt from the requirements of CEQA. The 


Approval of an Agreement Between the Port of Oakland and the California State 

Coastal Conservancy to Establish Cost Sharing Obligation for Excess Costs of Placing 

Material at Sonoma Baylands was the subject of a memo to the Board from the Director 

of Engineering notifying the Board that improvements to the Inner and Outer Harbor 

Channels were authorized by the federal Water Resources Development Act of 1986 

(WRDA). This act authorized the U.S. Army Corps of Engineers (Corps) to deepen the 

Inner and Outer Harbor Channels to -42 feet Mean Lower Low Water and to construct 

other improvements to the channels. The Port is the non-federal sponsor of this Project and 

will participate in its cost in accordance with WRDA. The Port will be obligated to cost 

share in the "least cost" alternative of disposing 5.4 million cubic yards at an ocean site. 

However, the Corps will contract the Project for the "least cost, environmentally acceptable" 

alternative of disposing 2.9 million cubic yards at an ocean site and placing 2.5 million cubic 

yards at Sonoma Baylands for tidal marsh restoration. Under provisions of Section 204 of 

October 18, 1994 - 14 -

the federal Water Resources Development Act of 1992, the cost of disposing and utilizing 

dredged material at Sonoma Baylands, in excess of the costs of the "least cost alternative" 

of ocean disposal of that material, is to be cost shared by the California State Coastal 

Conservancy (sponsors of the Sonoma Baylands Project) and the Corps. The Port and the 

Coastal Conservancy have reached agreement that 4.273% of the cost of the general 

navigation features of the Project and will be cost shared between the Coastal Conservancy 

and the Corps instead of between the Port and the Corps. This agreement between the Port 

and the Coastal Conservancy will be reflected as well in each party's Project Cooperative 

Agreement with the Corps. Because of the Coastal Conservancy's limited available funds, 

the Port and the Coastal Conservancy also have agreed that if the Coastal Conservancy's 

share of the 1.06825% of costs exceeds $1 million, and the Port and Coastal Conservancy 

are unable after a good faith effort to secure alternative financing, the Port will reimburse 

to the Coastal Conservancy the excess of the costs over $1 million if the presently 

encumbered state funds for the Project are inadequate to pay such excess. Because of the 

Coastal Conservancy's small share of total costs of general navigation features, the Corps' 

current estimate of general navigation feature costs ($86.69 million) would have to increase 

by $6.92 million before the Coastal Conservancy's cost share reaches $1 million, and by 

$25.64 million before the Coastal Conservancy's cost share would reach $1.2 million. If the 

Coastal Conservancy's cost share does exceed $1 million, it will probably be several years 

before the Port will know whether the Port will be required to make any reimbursement 

because the Coast Conservancy's costs that may cause exceedance of the presently 

encumbered state funds for the Project are future and uncertain monitoring costs. It was 

recommended that the Board authorize an Agreement with the California State Coastal 

Conservancy in accordance with the foregoing. The recommendation was approved on 



Resources recommended the appointment of William E. Wade, as Airport General 

October 18, 1994 - 15 -

Manager, effective October 19, 1994, at $7,838.00 per month; and the following 

appointments in support of the reorganization of the Maritime Activities Division: Gary 

Hallin, as Assistant to the General Manager, Marine Terminals/Customer Service - Marine 

Commercial Representative V, effective October 19, 1994, at $5,616.00 per month; Dan C. 

Westerlin, as Strategic Marketing Supervisor - Marine Commercial Representative V, 

effective October 19, 1994, at $5,094.00 per month; Yasushi Yamada, as Customer 

Service/Marketing Representative - Marine Commercial Representative II, effective 

October 19, 1994, at $3,997.00 per month; Elizabeth D. Franco, as Documentation and 

Statistics Analyst - Traffic Representative I, effective October 19, 1994, at $3,406 per month; 

Mary Ann Shaffer, as Documentation and Statistics Analyst - Traffic Representative I, 

effective October 19, 1994, at $3,406.00 per month; and Cornel I. Hammons, as 

Documentation and Statistics Analyst - Traffic Representative I, effective October 19, 1994, 

at $3,244.00 per month. Also in association with the reorganization were the terminations 

of Theresa M. Nardi, effective the close of the work day of October 18, 1994, due to the 

elimination of the classification and position of "Manager, Cargo Marketing Department"; 

Timothy Chen, effective the close of the work day of October 18, 1994, due to the 

elimination of the classification and position of "M anager, Cargo Marketing Department"; 

and Terry L. Vogl, effective the close of the work day of October 18, 1994, due to the 

elimination of the classification and positions of "Carrier Marketing Representative - Marine 

Commercial Representative IV". 

Mr. Gary Hallin, one of the employees affected by the reorganization, appeared 

before the Board to note the disruption of the personal lives of those impacted by the 

layoffs. He asked that the Board give consideration to a severance package that would be 

meaningful. 

Mr. Timothy Chen, one of the employees recommended for termination, appeared 

before the Board to note his years of service and requested an appropriate severance 

package to allow him to seek continued employment in the maritime industry. 

October 18, 1994 - 16

At the hour of 4:25 p.m. the Board entered into closed session on Personnel Matters 

as provided for under Government Code Section 54957 and reconvened in open session at 

the hour of 5:25 p.m. 

The recommendations were approved on passage of Resolution No. 94414 for 

appointments; Resolution No. 94415 for creating temporary positions; Resolution No. 94416 

for paid administrative leave; and Resolution No. 94417 for the termination of certain 

employees due to elimination of positions, with Commissioners Kramer, Loh and Ortiz 

voting no. 

Travel Authorization was the subject of a memo to the Board from the 

Secretary of the Board recommending approval for the travel of President James B. 

Lockhart, Commissioners Allen E. Broussard, David Kramer, John Loh and Director of 

Maritime, Leo Brien, to Beijing, China; Hong Kong, B.C.C.; and Taipei, Taiwan on or about 

the period from October 21 - 28, 1994, to call on shipping lines. Also recommended was 

the travel of the Director of Aviation, Steven Grossman, to Seoul, Korea; Tokyo, Japan; and 

Taipei, Taiwan on or about the period of October 22-28, 1994, to call on air cargo carriers. 

Further recommended was the travel of the Aviation Marketing Manager, Anders Westman, 

to Milan, Italy; Geneva, Switzerland; and Frankfurt, Germany, on or about the period of 

October 16-24, 1994, to call on air cargo carriers and to participate in the Air Cargo Forum. 


vote: 



Noes: None 

Absent: None 


October 18, 1994 - 17 -



SUPPLEMENTAL AGREEMENT WITH P & D AVIATION FOR AIRPORT 

PLANNING CONSULTING SERVICES CONSTITUTES PROFESSIONAL OR 


THIRD SUPPLEMENTAL AGREEMENT." 


FINDING AND DETERMINING THAT A PROPOSED FOURTH 

SUPPLEMENTAL AGREEMENT WITH ENVIRONMENTAL SCIENCE 

ASSOCIATES, FOR ENVIRONMENTAL CONSULTING SERVICES 

CONSTITUTES PROFESSIONAL OR SPECIALIZED SERVICES; AND 

AUTHORIZING EXECUTION OF SAID FOURTH SUPPLEMENTAL 

AGREEMENT." 


APPROVING PLANS AND SPECIFICATIONS FOR RECONSTRUCTION 

RUCTION OF 

ACCESS RAMPS CONNECTING TERMINAL 1 BUILDINGS M-101/M-102 & M- 

102/M-103, SOUTH FIELD, METROPOLITAN OAKLAND INTERNATIONAL 

AIRPORT, OAKLAND, CALIFORNIA; AND CALLING FOR BIDS 



APPROVING PLANS AND SPECIFICATIONS FOR REMOVAL OF WASTE OIL 

STORAGE TANK MF-18 AT BUILDING M-105, SOUTH FIELD, 


CALIFORNIA; AND CALLING FOR BIDS THEREFOR" 


APPROVING AND AUTHORIZING EXECUTION OF FIRST SUPPLEMENTAL 

AGREEMENT TO CONTRACT WITH LARSON-DAVIS, INC. FOR DESIGN, 

FURNISH AND MAINTAIN AN AIRCRAFT NOISE MONITORING SYSTEM 

AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT, OAKLAND, 

CALIFORNIA (A.I.P. 3-06-0170-13)." 




("RENEWAL AGREEMENTS") WITH 1) SOLOMON ENTERPRISES DBA 

PIT OTS' COMPUTER AVIATION TECH, 2) AMERICAN AIRLINES, INC. 

M-128, AND 3) AMERICAN AIRLINES, INC. (M-101 & M-103)." 



THE PORT TO PURCHASE ONE USED CARGO LOADER WITHOUT 

COMPETITIVE BUDDING AND AUTHORIZING SAID PROCUREMENT ON 

THE OPEN MARKET FROM CREG INTERNATIONAL, INC." 

October 18, 1994 - 18


APPROVING AND RA 11T YING EMERGENCY ACTION TO PERFORM 

DREDGING BERTH 25, AND APPROVING CHANGE ORDER TO PERFORM 

DREDGING, BERTH 24, OUTER HARBOR TERMINAL, OAKLAND, 

CALIFORNIA? 


CERTIFYING REVIEW AND CONSIDERATION OF FINAL 

ENVIRONMENTAL IMPACT REPORT FOR THE CHARLES P. HOWARD 

TERMINAL WHARF EXTENSION PROJECT, ADOPTING MITIGATION 

MEASURES, MAKING CERTAIN FINDINGS AND DETERMINATIONS 

REGARDING POTENTIAL SIGNIFICANT EFFECTS ON THE 

ENVIRONMENT, ADOPTING A STATEMENT OF OVERRIDING 

CONSIDERATIONS FOR SIGNIFICANT IMPACTS ON HISTORICAL AND 

VISUAL RESOURCES AND AIR QUALITY, AND ADOPTING A REPORTING 

AND MONITORING PROGRAM FOR MEASURES TO MITIGATE OR AVOID 

SIGNIFICANT EFFECTS ON THE ENVIRONMENT." 


APPROVING AND AUTHORIZING EXECUTION OF AN AMENDMENT TO 

AGREEMENT WITH PACIFIC GAS & ELFCTRIC ("PG&E") AND THE 

DEPARTMENT OF THE NAVY FOR CONSTRUCTION OF ELECTRIC 

POWER LINES." 



LAMPHIER AND ASSOCIATES FOR MARITIME CONSULTING SERVICES 


WAIVING COMPETT FIVE BIDDING; AND AUTHORIZING EXECUTION OF 



APPROVING PAYMENT TO THE UNITED 

STAPES OF AMERICA, ACTING 

THROUGH THE DEPARTMENT OF THE NAVY, NAVY PUBLIC WORKS 

CENTER ("PWC") FOR WORK ALREADY PERFORMED BY AND WORK TO 

BE PERFORMED BY PWC." 



RUCTURAL 

INSPECTION AND REPAIR OF PACECO CRANES X411 (S/N 710) AND X412 

(S/N 711), BERTHS 25 AND 26, OUTER HARBOR 'TERMINAL, OAKLAND, 



GRAN'T'ING MARINE 'TERMINALS CORPORATION PERMISSION TO 


October 18, 1994 - 19 -


APPROVING AND AUTHORIZING AGREEMENT WITH CALIFORNIA 

STATE COASTAL CONSERVANCY REGARDING THE OAKLAND HARBOR 

NAVIGATION IMPROVEMENT PROJECT AND THE SONOMA BAYLANDS 

WETLAND DEMONSTRATION PROJECT." 




GRANTING SEA-LAND SERVICES, INC. PERMISSION TO PERFORM 

CERTAIN WORK" 


GRANTING FEDERAL EXPRESS CORPORATION PERMISSION TO 

PERFORM CERTAIN WORK" 


vote: 

GRANTING WESTERN ERN FEDERAL SAVINGS AND LOAN ASSOCIATION 



Ayes: Commissioners Broussard, Cole, Vohs 


Noes: Commissioners Kramer, Loh and Ortiz - 3 

Absent: None 




CREATING TEMPORARY POSITIONS OF MANAGER, MARITIME 

MARKETING, MANAGER, CARGO MARKETING DEPARTMENT AND 

CARRIER MARKETING REPRESENTATIVE - MARINE COMMERCIAL 

REPRESENTATIVE IV AND MAKING APPOINTMENTS THERETO." 


GRANTING PAID ADMINISTRATIVE I :RAVE TO CERTAIN EMPLOYEES." 


- 20 -


CONCERNING TERMINATION OF CERTAIN EMPLOYEES DUE TO 

ELIMINATION OF POSITIONS IN THE MARITIME DIVISION." 


ORDINANCE NO. 867 TO CREATE E NEW SALARY SCHEDULE NO. 240.19, TO 

CREATEE 

NEW POSITIONS IN THE PORTS MARITIME DIVISION AND AMENDING 

SECTION 11.028 TO REVISE THE SALARY SCHEDULE FOR THE POSITION OF 

TRADE RESEARCH ANALYST - MARINE COMMERCIAL REPRESENTATIVE I 

AND REPEALING SECTIONS 11.002, 11.0031, 11.0033, 11.009 AND 11.024 OF PORT 

ORDINANCE NO. 867 ELIMINATING CERTAIN POSITIONS IN THE PORTS 

MARITIME DIVISION," was read a second time and passed by the following vote: 

Ayes: Commissioners Broussard, Cole, Vohs 


Noes: Commissioners Kramer, Loh and Ortiz - 3 

Absent: None 


AUTHORIZING EXECUTION OF AMENDMENT TO BUILDING LEASE WITH 

OAKLAND PORTSIDE ASSOCIAI ES IN JACK LONDON SQUARE AND DIRECTING 


AMENDING PORT ORDINANCE 2833 RELATING TO WHARFAGE RULES AND 

REGULATIONS AND WHARFAGE, CONTAINERIZED CARGO," and Port Ordinance 

No. 3243 being, "AN ORDINANCE FINDING AND DE'l ERMINING THAT THE 

PUBLIC INTEREST AND NECESSITY REQUIRE THE ACQUISITION OF THE 

PROPERTY INTERESTS 

ERESTS OF HOWARD RANSOM, HUGH G. MCKAY, HOWARD 

RANSOM ASSOCIA'T'ES/HUGH G. MCKAY ASSOCIATES AND RANSOM/MCKAY 

GOLF, INC. UNDER CONCESSION AGREEMENTS TO OPERATE E A GOLF 

FACILITY AT THE LEW F. GALBRAITH MUNICIPAL GOLF COURSE, MAKING 

OTHER FINDINGS AND DETERMINATIONS 

ERMINATIONS IN CONNECTION THEREWITH, AND 

October 18, 1994 - 21 -

AUTHORIZING THE FILING OF PROCEEDINGS IN CONDEMNATION FOR THE 

ACQUISITION THEREOF," were read a second time and passed by the following vote: 


Noes: None 

Absent: None 


At the hour of 5:30 p.m. the Board entered into closed session for a conference with 

Legal Counsel, existing litigation, pursuant to subdivision (a) of Government Code Section 

54956.9. Name of cases: Port of Oakland v. Steam Valve Machine Company. et al., 

Alameda County Superior Court Action No. 722704-0 (Port Case No. 93-33-C); and Port 

of Oakland v. Producer's Seafood, Inc., et al., Alameda County Superior Court Action No. 

742131-0 (Port Case No. 94-25-C); and conference with Legal Counsel, anticipated litigation: 

significant exposure to litigation pursuant to subdivision (b) of Government Code Section 

54956.9, two cases; and initiation of litigation pursuant to subdivision (c) of Government 

Code Section 54956.9, one case; and reconvened in open session at the hour of 6:00 p.m. 

during which time President Lockhart was excused from the meeting. 



Noes: None 

and Vice President Broussard - 6 

Absent: President Lockhart - 1 


seconded. 






- 22 -




The regular meeting was held on Tuesday, November 1, 1994, at the hour of 3:05 



portion was held prior to the meeting during which time the Board received a report on the 

development of the "Hire Area Resident Program." 

Commissioners present: Broussard, Cole, Kramer, Loh, Ortiz 






Director of Policy and Strategic Planning; Chief of Facilities; Director of Finance; Risk 

Manager; Director of Equal Opportunity; Director of Engineering; Chief Engineer; Chief 

of Planning; Media Relations Manager; and Secretary of the Board. 

The minutes of the regular meeting of October 18, 1994 were approved as submitted 


Approval to Dispense with Formal Bids for Construction of Passenger Corridor, 

South Airport MOIA was the subject of a memo to the Board from the Director of 

Engineering notifying the Board of the proposal to construct a passenger corridor to provide 

passenger access between the two terminals, and that it is desired to have the project 

completed prior to the peak summer travel season. In order to ensure timely completion 

of the project, as requested by the airlines, the construction may have to be divided into 

multiple contracts. In addition, it is proposed that purchase order contracts be issued for 

various construction materials including HVAC equipment, moving walkway equipment, 

foundation piles and structural steel at a total cost of approximately $1.5 million. It was

ecommended that the Board find it to be in the best interests of the Port to dispense with 

formal bidding procedures, adopt a contractor selection process and authorize the Executive 

Director to purchase various construction materials at a total cost of approximately $1.5 

million; and to execute contracts based on the receipt of informal proposals from short lists 

of contractors for each construction contract. The project is categorically exempt and does 




of One Year or Less with America West Airlines, Inc., John R. Roden and Carmen A. Roden 

dba Aviation Advisory Service, Airpac Airlines, Inc., Concession Air Corporation and Joe 

Lucero dba Joe Lucero Printing was the subject of a memo to the Board from the Director 

of Aviation recommending approval to renew the agreements with America West Airlines, 

Inc., for 532.5 square feet of ticket counter, 1,084 square feet of office, 2,449 square feet of 

bag make-up in Building M-101 and 210 square feet of office space in Building M-103, at 

$21,711.60 per month, effective January 1, 1992; America West Airlines, Inc., for 5,203 

square feet of warehouse space in Building M-106, at $3,642.10 per month, effective January 

1, 1992; John R. Roden and Carmen A. Roden dba Aviation Advisory Service, for 534 

square feet of office space and 180 square feet of storage space in Building L-142, North 

Airport, at $663.34 per month, effective July 1, 1994; Airpac Airlines, Inc., for 156 square 

feet of 2nd floor office space in Building L-142, North Airport, at $180.96 per month, 

effective November 1, 1994; Concession Air Corporation, for 291 square feet of 1st floor 

office space in Building L-107, North Airport, at $401.58 per month, effective September 1, 

1994; and Joe Lucero dba Joe Lucero Printing, for 6,787 square feet of shop space in 

Building L-647, North Airport, at $1,653.56 per month, effective December 1, 1994. The 


Approval of New License and Concession Agreements with Existing Tenant America 

West Airlines, Inc. was the subject of a memo to the Board from the Director of Aviation 

November 1, 1994

ecommending approval to renew the agreements with America West Airlines, Inc., for 5,203 

square feet of warehouse space in Building M-106, at $3,642.10 per month, effective January 

1, 1991; America West Airlines,Inc., for 3,003 square feet of warehouse space in Building 

M-106, at $2,252.25 per month, effective January 1, 1993; and America West Airlines, Inc., 

for 472 square feet of ticket counter, 1,084 square feet office, 2,449 square feet of bag make- 

up in Building M-101 and 210 square feet of office space in Building M-103, at $19,253.43 

per month, effective January 1, 1991. The recommendation was approved on passage of 


Approval of First Supplemental Agreement with America West Airlines, Inc. was the 

subject of a memo to the Board from the Director of Aviation recommending approval of 

a first supplemental agreement with America West Airlines, Inc., to reduce their warehouse 

space, to 3,003 square feet of warehouse space in Building M-106, from $3,902.25 per month 

to $2,252.25 per month, effective July 28, 1992. The recommendation was approved on 


Approval of Right-of-Entry and Indemnity Agreement with August Puglia dba August 

Insurance Services was the subject of a memo to the Board from the Director of Aviation 

recommending approval of a Right-of-Entry and Indemnity Agreement with August Puglia 

dba August Insurance Services to provide Notary Public service at the Airport. The 


The Ramada Hotel Insurance was the subject of a memo to the Board from the 

Director of Human Resources notifying the Board that the Port took control of the premises 

at 455 Hegenberger Road as the result of the order of the Federal Bankruptcy Court Judge. 

The Property and Liability insurance was bound under the Port's insurance programs. 

However, these programs were not designed to fully insure an operating hotel and were only 

considered an interim measure. Quotations were solicited, and it was recommended that 

the Board authorize the placement of the policy with the Reliance Insurance Company at 

an annual deposit premium of $65,269.00. When the Port re-leases the hotel, the new 

November 1, 1994 

- 3 -

tenant will have the opportunity to assume the policy mid-term. The recommendation was 


Plans and Specifications for Demolition of Building K-101, Oakland Airport 

Business Park was the subject of a memo to the Board from the Director of Engineering 

recommending their approval and authority to advertise for bids for the demolition of the 

400' by 180' single story steel warehouse on Hegenberger Road which in years past housed 

the Oakland Museum's "White Elephant" sale. The project is categorically exempt and does 




Resources recommended the appointment of Lubert J. Gilbert, Jr., as Port Equipment 

Driver, effective November 2, 1994, at $3,431 per month. Also recommended was a leave 

of absence for Elizabeth D. Franco from her former Civil Service position of "Marine Billing 

and Traffic Assistant" to accept the exempt position of "Documentation and Statistics 

Analyst - Traffic Representative I"; leave of absence for Mary Ann Shaffer from her former 

Civil Service position of "Marine Billing and Traffic Assistant" to accept the exempt position 

of "Documentation and Statistics Analyst - Traffic Representative I"; and leave of absence 

for Cornel I. Hammons from his former Civil Service position of "Marine Statistics Clerk" 

to accept the exempt position of "Documentation and Statistics Analyst - Traffic 

Representative I". Further recommended was the termination of Sabrina Del Favero, Senior 

Secretary in the Construction Department, effective the close of the work day of November 

1, 1994, for cause. The recommendations were approved on passage of Resolution No. 

94426 for leaves of absence; Resolution No. 94427 for termination; and Resolution No. 

94433 for appointment, with Commissioner Loh voting no. 

Approval for an Incentive-Based Pilot Program to Hire Area Residents on Public 

Works Projects was the subject of a memo to the Board from the Director of Equal 

Opportunity notifying the Board of the program known as the Hire Area Residents Program 

November 1, 1994 - 4 7

to encourage Public Works contractors to hire local residents on construction projects. The 

goal is to have a more balanced distribution of economic benefits among residents in 

Oakland and in surrounding cities within two miles of Port boundaries which are identified 

in 1990 census data as having low income or high levels of unemployment. The incentive 

will be calculated based on the total payroll paid to area residents, excluding benefits, before 

federal and state taxes and other deductions. The proposed variable rate would be 5% for 

the first $250,000, 4% from there to $1,000,000.00 and 3% for payroll dollars that exceed 

$1 million. Residency in the targeted area for a pre-set period of time is not required, but 

residency must be verifiable through participation in the City of Oakland Local Employment 

Program for Oakland residents or presentation of at least two of the following: driver's 

license, voter registration, rental agreement, mortgage statement or billings from a public 

utility. It was recommended that the Board approve the Pilot Program to Hire Area 

Residents on Public Works Projects. The recommendation was approved on passage of 



the Board recommending approval for the travel of Commissioners Celso Ortiz, Ada Cole 

and the Deputy Executive ]Director, Charles Foster, to Marrakech, Morocco, to attend the 

Airports Council International World Assembly & Conference, on or about the period 

November 5 - 13, 1994. The recommendation was approved on passage of Resolution No. 

94429. 


- 5 -

vote: 



Noes: None 

Absent: None 



APPROVING DISPENSING WITH FORMAL BIDS FOR CONSTRUCTION OF 

PASSENGER CORRIDOR, SOUTH FIELD, METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT, OAKLAND, CALIFORNIA AND AUTHORIZING 

THE PERFORMANCE THEREOF." 




("RENEWAL AGREEMENTS") WITH 1) AMERICA WEST AIRLINES, INC. 

(TWO AGREEMENTS), 2) JOHN R. RODEN AND CARMEN A. RODEN DBA 

AVIATION ADVISORY SERVICE, 3) AIRPAC AIRLINES, INC., 4) 

CONCESSION AIR CORPORATION, AND 5) JOE LUCERO DBA JOE 

LUCERO PRINTING." 



AND CONCESSION AGREEMENTS ("L&C") WITH AMERICA WEST 

AIRLINES, INC. (THREE AGREEMENTS)." 



SUPPLEMENTAL AGREEMENTS WITH AMERICA WEST AIRLINES, INC." 


APPROVING AND AUTHORIZING EXECUTION OF CERTAIN RIGHT-OF- 

EN'IRY AND INDEMNITY AGREEMENT WITH AUGUST PUGLIA DBA 

AUGUST INSURANCE SERVICES." 


AUTHORIZING PLACEMENT OF THE RAMADA HOTEL EL INSURANCE." 

November 1, 1994 6


APPROVING PLANS AND SPECIFICATIONS FOR DEMOLITION OF 

BUILDING K-101, OAKLAND AIRPORT BUSINESS PARK, OAKLAND, 





TERMINATING APPOINTMENT OF SABRINA DEL FAVERO." 


APPROVING AN INCENTIVE BASED PILOT PROGRAM TO HIRE AREA 

RESIDENTS ON PUBLIC WORKS PROJECTS." 




GRANTING ALAMO RENT-A-CAR PERMISSION TO PERFORM CERTAIN 

WORK." 


GRANTING OAKLAND VILLAGE CORPORATION PERMISSION TO 



Ayes: Commissioners Broussard, Cole, Kramer, Ortiz, 



Absent: None 


APPOINTING LUBERT J. GILBERT, JR. TO THE POSITION OF PORT 

EQUIPMENT DRIVER." 

At the hour of 3:30 p.m. the Board entered into closed session for the purpose of a 

conference with Labor Negotiators - Agency Negotiator: I.E.D.A. - Employee Organization: 

Local 790, Government Code Section 54957.6; and conference with Legal Counsel - Existing 

November 1, 1994 - 7 -

Litigation - pursuant to subdivision (a) of Government Code Section 54956.9, Name of Case: 

Port of Oakland v. Seabreeze Yacht Center. Inc. et al. United States Northern District 

Court Case No. 92-0380 and reconvened in open session at the hour of 4:15 p.m. 



Noes: None 

Absent: None 


seconded. 






- 8 - 





The regular meeting was held on Tuesday, November 15, 1994, at the hour of 3:10 



Commissioners present: Broussard, Cole, Kramer, Vohs and 


Commissioners absent: Loh and Ortiz - 1 




Director of Policy and Strategic Planning; Chief of Facilities; Director of Finance; Director 

of Equal Opportunity; Director of Engineering; Chief Engineer; Chief of Planning; Media 

Relations Manager; and Secretary of the Board. 

The minutes of the regular meeting of November 1, 1994 were approved as submitted 


Commissioner Vohs, Chair of the Audit and Finance Sub-Committee, informed the 


Commissioner Vohs, member of the Commercial Real Estate Committee, informed 

the Board that the committee had met and reviewed their current agenda. 

First Reading of Ordinance Approving Second Supplemental Agreement with ATS- 

Lombard Food Services and First Supplemental Agreement with ATS-Lombard Services was 

the subject of a memo to the Board from the Director of Aviation notifying the Board that 

ATS-Lombard Food Services has operated the Airport's food and beverage concession 

(F&B) since 1984. ATS pays the Port a minimum annual guaranteed rent of $1,043,952.00 

against the following percentages of gross sales revenue: 12% of food and nonalcohol 

beverage; 15% of alcohol beverage; and 50% of amusement games. In FY94, ATS reported

F&B total sales of $6,491,734.00 and paid rent of $1,043,952.00. ATS-Lombard Services has 

operated the Airport's newsstand and gift shop concession (N&G) since 1984. ATS pays the 

Port a minimum annual guaranteed rent of $724,968.00 against the following percentages 

of gross sales revenue: 15% of newsstand and duty free; 20% of gift; and 10% of vending 

gross revenue. In FY94, ATS reported N&G total sales of $3,199,420.00 and paid rent of 

$724,968.00. Both leases were award as the result of a 1984 competitive proposal process. 

On November 19, 1993, the Board gave approval in principle to the terms of a Second 

Supplemental Agreement to the Lease and Concession Agreement with ATS-Lombard Food 

Services (Food and Beverage) and a First Supplemental Supplemental Agreement to the 

Lease and Concession Agreement with ATS-Lombard Services (Newsstand and Gift Shop). 

The proposed Second and First Supplemental Agreements would extend the term of both 

leases, obligate ATS to make additional capital improvement expenditures, modify the 

percentage rent formula, introduce branded products and value pricing, and provide for local 

disadvantaged business enterprise (DBE) participation through its "Ready for Take Off' 

training program. As part of the DBE program, the barber/shoeshine services currently 

offered by the Airport Barber Shop concession will be made a part of the ATS-Lombard 

Services Lease and Concession Agreement. This concession would be expanded to include 

related retail merchandise and add services, such as minor shoe repair, film developing and 

express package drop-off. The proposed terms include that both leases would be extended 

to May 31, 2005 with a minimum annual rent of $1,043,952.00 for food and beverage and 

$724,968.00 for newsstand and gift. The percentage rent would be 12% for food and 

beverage sales over $5,000,000.00; 15% for food and beverage sales over $7,000,000.00; 15% 

for alcohol sales over $2,250,000.00; 20% for alcohol sales over $3,500,000.00; and 20% for 

newsstand, gift, duty free, and vending sales over $4,000,000.00. The new retail and service 

concepts would be 5%, first year of operation; 10%, second year of operation; and 15%, 

third year of operation. Other considerations include vacating of the Terminal I lobby bar 

to allow expansion of the international holdroom and related Federal Inspection Service 

November 15, 1994 - 2 -

facilities; Capital Improvement Obligation of a minimum of $3 million for both concessions 

by 1995; and an additional $600,000.00 for both concessions between 1995 and 2005. The 

DBE Participation would be 30% DBE revenue participation total for both concessions 

combined; payment penalties for failure to provide "good faith efforts" and maintain 30% 

DBE participation. It was recommended that the Board approve the first reading of an 

ordinance for the supplemental agreements. During discussion, the staff informed the Board 

that a complete review of the improvements would be presented to the Board at their 

meeting on December 13, 1994. The recommendation was approved on passage of an 


Approval and Adoption of the Mitigated Negative Declaration for the Relocation and 

Improvement of the Aircraft Rescue and Fire Fighting (ARFF) Facility. Adoption of 

Mitigation Measures for the Project, and Adoption of the Mitigation Monitoring and 

Reporting Program, Approval of Plans and Specifications for Construction of Fill was the 


proposed relocation and improvement of the existing Aircraft Rescue and Fire Fighting 

Facility at the Airport. The proposed project will provide upgraded facilities to 

accommodate changes in staff operations and scheduling, and to provide garage space for 

current and new fire fighting vehicles. The new facility is proposed for a presently 

undeveloped site west of taxiway B, and south of taxiway B-5 on the South Airport. The 

proposed new ARFF building will be approximately 33,000 square feet in area. The 

footprint of the building and surrounding pavement and access roadway will occupy 

approximately 220,000 square feet. Port staff has prepared an Initial Study and Mitigated 

Negative Declaration to determine if an EIR would be required to comply with the 

California Environmental Quality Act. The Initial Study concluded that all potentially 

significant impacts could be mitigated to insignificance. The IS/MND were circulated for 

public review and comment on May 26, 1993 for 30 days. Eight comment letters were 

received during the comment period and written responses were provided to each 

November 15, 1994 - 3 -

commentator. The City of Alameda; Shute, Mihauly and Weinberger; the Audubon Society; 

and the Sierra Club, all objected to exclusion of the proposed facility from the 

Environmental Impact Report/State (EIR/S) for the Airport Development Program. 

However, the ARFF project may be considered separately from the ADP because the ARH, 

Facility has independent and immediate utility, and is not required for implementation of 

the ADP. Other comments concerned growth inducement, and cumulative impacts; size of 

the proposed facility; loss of wildlife habitat on site and in adjacent upland areas. None of 

the comments were considered significant. The environmental documents include a 

mitigation monitoring and reporting program. It was recommended that the Board adopt 

the Initial Study and Mitigated Negative Declaration for the Relocation and Improvement 

of the Aircraft Rescue and Fire Fighting (ARFF) Facility; determine that there is no 

substantial evidence in light of the whole record before the Board that the project may have 

a significant effect on the environment; adopt the mitigation measures and the Mitigation 

Monitoring and Reporting Program; and find that the Mitigated Negative Declaration 

reflects the independent judgement of the Board. Also included in the recommendation was 

approval of the plans and specifications for construction of the fill for the project. The 


Approval of Termination of License and Concession Agreement with Andrew Busha, 

an Individual Doing Business Under the Firm Name and Style of AIRPORT BARBER 

SHOP was the subject of a memo to the Board from the Director of Aviation notifying the 

Board of the existing barber shop at the Airport which operates in Terminal I and offers 

barbering, shoeshine and showers, and in Terminal II, two shoeshine stands. The existing 

rent is $3,000.00 a year. The Airport's Terminal I Access Ramp Renovation Project is 

scheduled to commence January 5, 1995, and will bring many of the Airport's Terminal I 

facilities into compliance with the Americans with Disabilities Act. The barber shop will 

be demolished to make room for the renovated public restrooms and new first aid treatment 

room. It was recommended that the Board terminate the License and Concession 

November 15, 1994 - 4 -

Agreement dated January 1, 1987 with Mr. Andrew Busha, an individual doing business 

under the firm name and style of Airport Barber Shop, effective December 31, 1994. It was 

noted that Mr. Busha is participating in the concession program sponsored by ATS-Lombard 

Services. The recommendation was approved on passage of Resolution No. 94435. 

Approval of Termination of License and Concession Agreement with Midwest 

International. Inc. was the subject of a memo to the Board from the Director of Aviation 

notifying the Board that Midwest International, Inc. has provided self-service, pay television 

chairs at the Airport since 1980 under a series of one-year license and concession 

agreements. The pay television chairs receive limited public use, providing the Port between 

$1,500.00 and $2,000.00 in annual rent. The Terminal I access ramp renovation begins in 

January 1995, and this renovation with the concession renovation in the Terminal I lobby, 

will displace the television chairs. It was recommended that the Board terminate the 

agreement effective January 31, 1995. The recommendation was approved on passage of 


Supplemental Agreement with Brown-Buntin Associates for Aviation-related 

Acoustical Analysis and Monitoring Services was the subject of a memo to the Board from 

the Director of Aviation notifying the Board that the Port has an agreement with the firm 

to furnish aviation-related acoustical consultation services, including specific noise reporting 

and validation as required by the State of California under Title 21 of the California 

Administrative Code. The fitni has performed effectively for the Port in the past in 

accomplishing the Airport-related noise monitoring services, and it was recommended that 

the Board authorize a supplemental agreement with Brown-Buntin Associates, Inc., for 

acoustical consulting services for an increased amount of $37,500.00 for the reminder of FY 

94-95. The recommendation was approved on passage of Resolution No. 94437. 

Program Management Services for a Residential Soundproofing Program (Phase II 

of the Sound Study) was the subject of a memo to the Board from the Director of Aviation 

notifying the Board that during fall of 1993, the Airport completed Phase I of a residential 

November 15, 1994 - 5 -

soundproofing program by measuring the interior noise levels of 28 homes located within 

or near the Airport's "noise impact area" on Bay Farm Island in Alameda. Phase II of the 

program will include soundproofing approximately six condominiums of different 

construction types on Bay Farm Island to decrease the interior noise level by at least a 5 

decibel, as required by the Federal Aviation Administration, to receive federal funding. 

Phase H will be a pilot program to identify the most effective soundproofing methods for 

these homes to achieve a 5 decibel reduction. Soundproofing methods will be tested and 

refined during Phase II in order to prepare for an effective, efficient Phase III program in 

which up to 600 homes could be insulated. To provide for management of the project, it 

was recommended that the Board authorize an agreement with C. Kell-Smith & Associates 

of San Bruno, California, to perform program management services for this project. The 

maximum payment to be made under this agreement would be $70,000.00, with an 

additional amount of $17,500.00 for contingency work if required. The recommendation was 



of One Year or Less with Keiser and Associates, Inc.. Mercury International Sales and 

Service Company and Precision Aircraft & Repair was the subject of a memo to the Board 

from the Director of Aviation recommending approval to renew the agreements with Keiser 

and Associates, Inc. for 315 square feet of office space in Building M-102, at $430.12 per 

month, effective January 1, 1994; Mercury International Sales and Service Company, for 

exclusive travel insurance concession using 2 cabinets located in Buildings M-102 and M-130, 

at 10% of gross revenue against $150 per month minimum guarantee, effective February 1, 

1995; and Precision Aircraft & Repair, for 686 square feet of office, 11,089 square feet of 

hangar, 2,029 square feet of shop/storage, 19,784 square feet of apron and 2,280 square feet 

of paved parking space located in and adjacent to Bay C of Hangar 8, North Airport, at 

$5,294.65 per month, effective June 1, 1994. The recommendation was approved on passage 


November 15, 1994 - 6 -

Approval of an Extension of a Right-of-Entry and Indemnity Agreement with The 

Hertz Corporation was the subject of a memo to the Board from the Director of Aviation 

notifying the Board of a previous one-year Right-of-Entry and Indemnity Agreement for one 

ground water monitoring well adjacent to the Hertz service facility at the South Airport. 

Since Alameda County and State of California environmental regulations require that new 

and existing wells be monitored for at least one year, the Board extended the term through 

March 31, 1994. The Hertz Corporation indicates that the environmental regulatory 

agencies require additional monitoring of the wells, and it was recommended that the Right- 

of-Entry and Indemnity Agreement be further extended through March 31, 1995. The 


Findings and Approval to Dis •ense with Corn e itive Biddin' A. royal of Plans and 

Specifications for Phase I Work, and Approval to Execute Lease for Development of Tack 

London Square Movie Theater was the subject of a memo to the Board from the Director 

of Commercial Real Estate notifying the Board of the Lease Option Agreement and Lease 

with Dow-Pac Properties for the development of a movie theatre in Jack London Square. 

It is possible to facilitate the commencement of Phase I of the construction, which is 

currently scheduled for early December 1994, and that phase will include clearing and 

grubbing and site remediation work. To accommodate this schedule and to minimize the 

paperwork that would be required to amend the Lease Option Agreement to provide for 

commencement of construction work prior to the exercise of the option, it is proposed to 

enter into the Lease. The Lease would be amended to provide for a new Lessee, First 

Guaranty Exchange Company, a California corporation ("FGE") who is Dow-Pac Properties' 

tax-deferred exchange intermediary. FGE will assign the Lease to Dow-Pac when the 

benefits of Dow-Pac's tax-free exchange are realized, which is anticipated to occur on or 

before March 30, 1995. The individual general partners of Dow-Pac will guarantee to the 

Port completion of construction of the theatre. Once the parties have signed the Lease, the 

Lessee will make a payment of $25,000.00 (the deposit) and $2,083.00 (first month's 

November 15, 1994 7

construction rent). The Lease will provide for the Lessee's contractor to perform certain 

Phase I site work, consisting of site clearing and grubbing and site remediation. The cost 

of the Phase I will be reimbursed by the Port. The applicant proposes to construct a nine 

screen theater on the site. The building, approximately 200' x 194', will cover nearly the 

entire site, leaving a 6' wide alley between the new and existing buildings. The theater 

entrance will be in the middle of the block on Washington Street, opposite the garage 

entrance. The nine auditoriums will be on one floor arranged around a central lobby, with 

seating capacities ranging from approximately 170 to nearly 400. The total proposed seating 

capacity is approximately 2400. The building will be approximately 35' tall over the 

auditoriums with a lower height over the central lobby. An art-deco style marquee and sign 

will be constructed over the Washington Street entrance, with a horizontal projecting 

marquee and a vertical identification sign tower approximately 60' tall. The estimated cost 

of the project is $5.4 million. It was recommended that the Board find and determine that 

it is in the best interests of the Port to dispense with competitive bids for clearing and 

grubbing the theater site and excavation and removal of contaminated soil; approve the 

Plans and Specifications for the Phase I work; and approve and authorize the execution of 

a lease with First Guaranly Exchange Company, a California corporation, subject to the 

Dow-Pac Partners' construction guaranty. The recommendation was approved on passage 


First Reading of an Ordinance Approving Appraisal, Establishing Just 

Compensation. and Authorizing the Executive Director to Execute Documents to Acquire 

the PG&E Property at the Corner of Clay and Embarcadero Streets was the subject of a 

memo to the Board from the Director of Commercial Real Estate notifying the Board of 

the negotiations for a Purchase and Sale Agreement covering the Port's purchase of the 

18,978 square foot site located at the northwesterly corner of Embarcadero and Clay Streets 

across from the Port Building. The Port contracted with David P. Rhoades & Associates 

for an appraisal of the site, and made an offer of $256,203.00 to PG&E contingent on Board 

November 15, 1994 - 8 -

action approving the appraisal and establishing just compensation for the property. PG&E 

earlier provided the Port with a Right of Entry which allowed the Port to construct the 

parking improvements on the property to accommodate Beverages & more!'s September 24 

opening date. The Port made a payment to PG&E of $38,000.00 which will be applied 

toward the purchase price of the property. Beverages & more! will be paying rent to the 

Port in the amount of $2,000.00 per month for the use of the parking lot. During the course 

of final negotiations, PG&E requested that two additional conditions be added: that the Port 

pay a 3% commission to PG&E's broker, Tremolada and Company ($7,686.00), and pay rent 

of $2,000.00 per month to PG&E from the effective date of the Right of Entry (September 

8, 1994) through close of escrow (anticipated no later than February 1, 1995). It was 

recommended that the Board give first reading to an ordinance approving the appraisal, 

establishing just compensation for the property at $256,203.00, approving and authorizing 

the Executive Director to execute any documents required for the acquisition of the PG&E 

property for a purchase price of $256,203.00, approving the payment of a commission to 

Tremolada & Company in the amount of $7,686.00, and approving the payment of monthly 

rent in the amount of $2,000.00 to PG&E effective September 8, 1994, and continuing until 

close of escrow. The recommendation was approved on passage of an ordinance to print. 

Amendment Agreement with Vanderbyl Design, Amtrak Signs and Sign 

Consulting: Additional Services was the subject of a memo to the Board from the Director 

of Commercial Real Estate notifying the Board of the existing contract with Vanderbyl 

Design for the design of the Jack London Square Environmental Graphic program in the 

amount of $95,900.00. This design is now completed and has been presented to the Jack 

London Square Merchants. It is expected that the sign package will go out to bid in 

December. There now exists a need for the design and production of a directional sign 

system to include the Amtrak Station, Jack London Square Signs and the Ferry Signs; and 

it was recommended that the Board amend the agreement to provide for an additional 

$15,000.00 for the work and authority to utilize the design services on an annual basis for 

November 15, 1994 - 9

up to $20,000.00 per year for the next five years pending budget approvals. The 


Approval of Third Supplemental Agreement to Adjust Leasehold Area for Dongary 

Investments, Ltd. was the subject of a memo to the Board from the Director of Commercial 

Real Estate notifying the Board of the existing ground lease with Dongary Investments, Ltd., 

located at 2225 Seventh Street. Sealand, ANR, and Northwest Transport sublet from the 

Lessee and the property is used for container storage and trucking. The Board previously 

approved the Second Supplemental Agreement to the Lease based on a proposed driveway 

realignment and approximate leasehold square footage. The Middle Harbor Road 

realignment project required the relocation of the driveway. During construction, the width 

of the driveway and the configuration were changed in order to allow for better traffic flow. 

The results are a decrease to the leasehold area and to the rental income. It was 

recommended that the Board correct the rent under the Second Supplemental Agreement 

and approve the Third Supplemental Agreement to the Lease which provides for the 

reduced area. The new monthly rent will be $19,667.34. The recommendation was 


Recommended Approval of New License and Concession Agreements for MCP 

Industries Inc.. J.R. Transport Company and Mohammed H. Majid was the subject of a 

memo to the Board from the Director of Commercial Real Estate recommending approval 

of new agreements with MCP Industries Inc., for approximately 41,351.13 square feet and 

approximately 24,789.25 square feet of non-exclusive use of vacant land adjacent to Building 

K-108, at 201 Hegenberger Road, at $2,848.53 per month, effective October 1, 1994; J.R. 

Transport Company, for approximately 41,351.13 square feet and approximately 24,789.25 

square feet of non-exclusive use of vacant land adjacent to Building K-108, at 201 

Hegenberger Road, at $2,848.53 per month, effective November 1, 1994; and with 

Mohammed H. Majid, 455 Hegenberger Road, for approximately 10,000 square feet of 

restaurant, lounge, coffee shop, kitchen and service area, at the Ramada Hotel, at various 

November 15, 1994 - 10 -

percentage of gross receipts, effective November 18, 1994. The recommendation was 


Recommended A pproval of Agreement to Renew License and Concession Agreement 

for Neil Weinber and Rud Alexander dba Salty Dog was the subject of a memo to the 

Board from the Director of Commercial Real Estate recommending approval to renew the 

agreement with Neil Weinberg and Rudy Alexander dba Salty Dog for 1440 square feet on 

the Webster Street Pier, Building F-104 at 53 Jack London Square, at $1,251.87 per month 

against 7% of gross receipts. The recommendation was approved on passage of Resolution 

No. 94445. 

Request for Ap proval of First Supplemental Agreement to Lease Between GTE 

Mobilnet of California ("GlE") and the Port for Port Property Located in the Outer Harbor 


notifying the Board of the lease covering 2,500 square feet of land in the Outer Harbor. 

The term of the Lease expired on September 30, 1994. In accordance with the lease 

provisions, G I was required to notice the Port in writing six (6) months prior to exercising 

its option to extend the lease for a five year period. GTE h did not meet this requirement 

and has requested in writing that the Port waive the six month requirement. It was 

recommended that the Board approve the First Supplemental Agreement to extend the 

GTE Mobilnet lease for a five year period commencing October 2, 1994 and terminating 

September 30, 1999. The monthly rental rate would be increased to $575.00 based on 

percentage change in the Consumer Price Index over the prior five year period. The 

performance deposit would be increased to $1,725.00 and new insurance requirements and 

updated toxic substances provisions will be added to the agreement. The recommendation 


Request for First Reading of an Ordinance to Grant Caltrans a Temporary 

Construction Easement and a Resolution to Approve an Agreement to Extend Right-of- 

Entry and Indemnity Agreement ("ROE") for Port Property Located Adjacent to the 16th 

November 15, 1994 - 11 -

Avenue Over-crossing was the subject of a memo to the Board from the Director of 

Commercial Real Estate notifying the Board that Caltrans is proposing to replace the 

existing 16th Avenue over-crossing on City of Oakland owned property and adjacent to the 

Port area. The Port property is required by Caltrans to serve as a buffer zone to protect 

pedestrians and vehicles and as a staging area during the construction period. Caltrans has 

requested that the Port grant Caltrans a temporary Corporation Easement Deed and enter 

into a Right of Way Contract - State Highway that allows Caltrans to use the subject 

property until August 1, 1997, for a lump sum amount of $1,400.00 based on an annual rate 

of $0.10 per square foot. 'This strip of property is too small and too narrow to develop or 

rent. In order for Caltrans to meet their project certification deadline on November 1, 1994, 

they must have control or possession of the subject property and the Port and Caltrans have 

entered into a ROE dated November 1, 1994, for period of forty-five days from November 

1, 1994, to December 15, 1994. Since the Deed and Contract will be executed after the 

referendum period, Port staff proposes to extend the ROE to one hundred twenty days in 

order to cover the interim period. It was recommended that the Board authorize the 

temporary Corporation Easement Deed and Right of Way Contract-State Highway with 

Caltrans and extend the Right-of-Entry and Indenmity Agreement. The recommendation 

was approved on passage of Resolution No. 94447 and on an ordinance passed to print. 

Plans and Specifications for Construction of Dikes and Site Improvements for 

Dredge Material Containment Area at Galbraith Golf Course was the subject of a memo 

to the Board from the Director of Engineering recommending their approval and authority 

to advertise for bids for the project. The scope of work consists of site preparation including 

clearing and grading, construction of earthen dikes, construction of a low pei ineability cutoff 

wall, construction of a 90" diameter culvert, modification to an existing sanitary sewer, and 

landscaping and irrigation. The work proposed in the plans and specifications was addressed 

in the Supplemental Environmental Impact Report/Statement for the Oakland Harbor 

November 15, 1994 - -

Deep-Draft Navigation Improvements. The recommendation was approved on passage of 


Plans and Specifications for Construction of Wharf Extension at Berth 68, Charles 

P. Howard Terminal was the subject of a memo to the Board from the Director of 

Engineering recommending their approval and authority to advertise for bids for the project. 

The work consists in general of dredging, construction of a dike and fill for wharf and yard 

expansion, construction of a 306 foot pile-supported wharf extension and constructing new 

container yard improvements. The project has been evaluated in accordance with the Port's 

guidelines for the implementation of the California Environmental Quality Act as part of 

the Charles P. Howard Terminal Extension Environmental Impact Report which was 

certified at the October 18, 1994 meeting. As the schedule for the completion of the wharf 

extension is tight, it is necessary to commence the bid period as soon as possible. The 

award of any contract is dependent upon the receipt of permits from the San Francisco Bay 

Conservation and Development Commission, the United States Army Corps of Engineers, 

the Regional Water Quality Control Board and the City of Oakland Office of Planning and 

Building, and the specifications for this project provide that the award may occur as late as 

100 days after the opening of bids. The recommendation was approved on passage of 


Plans and Specifications for a Fourth Post-Panamax Crane for Seventh Street 

Terminal with Options for Additional Cranes was the subject of a memo to the Board from 

the Director of Engineering recommending their approval and authority to advertise for 

bids. The Board previously approved negotiating a contract for a fourth post panamax crane 

for the Seventh Street Terminal. The Board approved purchasing either a low-profile crane 

or a standard post panamax crane depending on whether the height restrictions due to the 

proximity of the Alameda Naval Air Station could be raised. Since then, it appears that the 

Port's efforts to have FAA raise the height limits for the Seventh Street Terminal will be 

successful and the decision has been made to contract for a standard crane. The Marine 

November 15, 1994 - 13 -

Terminals Division has now requested that the contract include options for purchasing one 

or two additional cranes as it now appears that it may be necessary to buy one or two cranes 

more to meet tenant needs for post panamax cranes at Outer Harbor Terminal. The project 

is categorically exempt and does not require the preparation of an environmental document. 


Award of Contract Demolition of Buildin H-213 375 8th Avenue was the subject 

of a memo to the Board from the Director of Engineering notifying the Board of the ten 

bids received and recommending award of the contract to R & B Equipment Rentals, Inc., 

the low bidder, at $123,581.00. The recommendation was approved on passage of 


Plans and Specifications for Reconstruction of Berths 35-38 Container Yard, Seventh 

Street Terminal was the subject of a memo to the Board from the Director of Engineering 

recommending their approval and authority to advertise for bids for the project. The work 

consists in general of reconstructing the container yards in Berth 35 and parts of Berths 37 

and 38. The work includes demolishing existing pavements, light poles and bases, and Port 

Buildings C-523 and C-534 and furnishing and installing new pavements striping and 

graphics, fencing, water system, electrical system, drainage system and a modular restroom. 

The project is categorically exempt and does not require the preparation of an 

environmental document. The recommendation was approved on passage of Resolution No. 

94452. 

Plans and Specifications for 1995 Structural Inspection and Repair of Krupp Cranes 

X413 and X414, Berth 23, Outer Harbor Terminal was the subject of a memo to the Board 

from the Director of Engineering recommending their approval and authority to advertise 

for bids for the inspection work. The work consists, in general, of providing mobile cranes, 

rigging, and scaffolding required to gain access to test the welded and bolted joints on the 

container cranes. The work also includes preparing welded joints for non-destructive test 

inspection by removing paint, removing and replacing any defective welds found, and touch- 

November 15, 1994 - 14 -

up painting of the tested/repaired areas. The project is categorically exempt and does not 

require the preparation of an environmental document. The recommendation was approved 


Assignment of Security Interest - Marine Terminals Corporation, Management 

Agreement was the subject of a memo to the Board from the Director of Maritime notifying 

the Board that the Marine Terminals Corporation Management Agreement at the Seventh 

Street Marine Container Terminal provides for Port reimbursement to MTC of the cost of 

certain improvements, including the gate and infrastructure improvements. MTC has 

obtained a loan from Wells Fargo Bank to finance the improvements and has assigned to 

the bank a security interest in payments due MTC from the Port. The Management 

Agreement provides that MTC shall not assign or hypothecate the Agreement or any 

interest therein without the consent of the Port and it was recommended that the Board 

consent to the assignment by MTC of a security interest in Port payments under the 

Management Agreement. The recommendation was approved on passage of Resolution No. 

94454. 

Resolution Accepting an Offer to Acquire the Subconcession Interest of Soon Ja Kim 

in the Coffee Shop/Snack Bar at Galbraith Golf Course was the subject of a memo to the 

Board from the Director of Maritime notifying the Board that the Port and the City have 

agreed to terminate the City's Lease of the Galbraith Golf Course in order to use the course 

as a dredged material disposal area. Soon Ja Kim is the subconcessionaire who operates 

the snack bar/coffee shop in the clubhouse at Galbraith Golf Course and the outlying snack 

bars on the Golf Course under the terms and conditions of a Subconcession Agreement with 

Ransom/McKay Golf, Inc., dated March 10, 1985. Under the Agreement the term was 

scheduled to expire on June 30, 1992, but the Subconcessionaire contends he has exercised 

an option to extend the Agreement for an additional term of five years. The Port's dredging 

project will eliminate the outlying snack bar sites and Mr. Kim's customer base of golfers 

who eat prior to and after playing golf at the Golf Course. Mr. Kim has requested 

November 15, 1994 - 15 -

compensation for the loss of his business sites, his customers and the value underlying his 

rights under his Subconcession Agreement with Ransom/McKay, Inc., and he has submitted 

an offer to terminate all of his subconcession rights for $100,000.00. The offer would 

resolve all issues between Mr. Kim and provides that Mr. Kim will be entitled to no other 

compensation from the Port. After considerable discussion, the offer was accepted on 



Resources recommended the appointment of Regina Crump, Chris Jordon, Virginia Ramos, 

and Eva Topete, as Relief Airport Custodians, effective November 21, 1994, at $10.36 per 

hour. Also recommended was the reversion of appointment to former classifications for 

Alvin J. Gatewood, to Custodian, from Custodian Supervisor, as a result of the City's 

reduction in force, effective November 21, 1994, at $2,536.00 per month; and the 

appointment of City of Oakland employee, Ron Grajeda, as Airport Custodial Supervisor 

I, effective November 21, 1994, at $2,785.00. Further recommended was the creation of two 

additional positions of Senior Equipment Systems Engineer; and medical leave of absence 

for Vanessa A. Brooks, Account Clerk, for 70 calendar days, through December 15, 1994. 

The recommendations were approved on passage of Resolution No. 94456 for appointments; 

Resolution No. 94457 for leave of absence; and on an ordinance passed to print for creation 

of positions. 

Agreement to Hire SM.1 Consulting to Provide Organizational Development 

Services was the subject of a memo to the Board from the Director of Human Resources 

recommending approval to retain SMJ Consulting, and its Principal Consultant, Dr. 

Santalynda Marrero, to provide problem identification, conflict resolution, skill development 

services, and organization transition services to various Port Divisions for a fee not to 

exceed $50,000.00. The recommendation was approved on passage of Resolution No. 94458. 

November 15, 1994 - 16 -

vote: 


Ayes: Commissioners Broussard, Cole, Kramer, Vohs and 

Noes: None 


Absent: Commissioners Loh and Ortiz - 2 


CERTIFYING CONSIDERATION OF INITIAL STUDY AND MITIGATED ED 

NEGATIVE DECLARATION FOR THE RELOCATION AND IMPROVEMENT 

OF THE AIRCRAFT RESCUE AND FIRE FIGHTING FACILITY; FINDING NO 

SUBSTANTIAL EVIDENCE OF SIGNIFICANT EFFECT ON THE 

ENVIRONMENT; APPROVING THE NEGATIVE DECLARATION; ADOPTING 

MII IGA'TION MONITORING AND REPORTING PROGRAM; APPROVING 

PLANS AND SPECIFICATIONS FOR CONSTRUCTION OF FILL FOR THE 

AIRCRAFT RESCUE AND FIRE FIGHTING FACILITY, SOUTH FIELD, 

METROPOLITAN OAKLAND INTERNATIONAL AIRPORT; AND CALLING 

FOR BIDS THEREFOR." 


APPROVING AND AUTHORIZING THE 'TERMINATION AND THE 

DIRECTOR OF AVIATION'S NOTICE THEREOF OF THAT CERTAIN 

LICENSE AND CONCESSION AGREEMENT DATED JUNE 1, 1987, WITH 

ANDREW BUSHA, AN INDIVIDUAL DOING BUSINESS UNDER THE FIRM 

NAME AND STYLE OF AIRPORT BARBER SHOP." 


APPROVING AND AUTHORIZING THE TERMINATION AND THE 

DIRECTOR OF AVIATION'S NOTICE THEREOF OF THAT CERTAIN 

LICENSE AND CONCESSION AGREEMENT DATED FEBRUARY 1, 1992, 

WITH MIDWEST INTERNATIONAL, INC." 


APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT TO 

CONTRACT WITH BROWN-BUNTIN ASSOCIATES FOR AVIATION- 

RELATED ACOUSTICAL ANALYSIS AND MONITORING SERVICES." 


FINDING AND DETERMINING THAT A PROPOSED AGREEMENT WITH C. 

KELL-SMITH & ASSOCIATES FOR PROGRAM MANAGEMENT SERVICES 

CONSTITU IES PROFESSIONAL OR SPECIALIZED SERVICES AND 

AUTHORIZING EXECUTION OF SAIL) AGREEMENT." 


- 17 -




("RENEWAL AGREEMENTS") WITH 1) KEISER AND ASSOCIATES, INC., 2) 

MERCURY INTERNATIONAL SALES AND SERVICES COMPANY, AND 3) 

PRECISION AIRCRAFT & REPAIR." 


APPROVING AND AUTHORIZING EXECUTION OF AN EXTENSION OF A 

RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT ("ROE EXTENSION 

AGREEMENT') WITH THE HERTZ CORPORATION." 


APPROVING PLANS AND SPECIFICATIONS FOR REMOVAL OF 

UNSUITABLE SOIL AT LOT 12, 475 SECOND STREET, OAKLAND, 

CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN 

CONNECTION THEREWITH AND DISPENSING WITH COMPETITIVE 

BIDDING THEREFOR, AND APPROVING AND AUTHORIZING 

EXECUTION OF LEASE WITH FIRST GUARANTY EXCHANGE COMPANY." 



AGREEMENT WITH VANDERBYL DESIGN, FOR DESIGN CONSULTING 


AND AUTHORIZING EXECUTION OF SAID FIRST SUPPLEMENTAL 

AGREEMENT." 


APPROVING AND AUTHORIZING THIRD SUPPLEMENTAL AGREEMENT 

WITH DONGARY INVESTMENTS, LTD." 



AND CONCESSION AGREEMENTS ("L&C") WITH 1) MCP INDUSTRIES, INC., 

2) J.R. TRANSPORT COMPANY, AND A LICENSE AGREEMENT WITH 

MOHAMMED H. MAJID." 



AND CONCESSION AGREEMENT ("L&C AGREEMENT") WITH NEIL 

WEINBERG AND RUDY ALEXANDER DOING BUSINESS AS SALTY DOG." 



SUPPLEMENTAL AGREEMENT TO LEASE WITH G'I'E MOBILNET OF 

CALIFORNIA." 

November 15, 1994 - -



TO EXTEND RIGHT-OF-ENTRY AND INDEMNITY AGREEMENT ("ROE 

EXTENSION AGREEMENT') WITH THE STATE OF CALIFORNIA, 

DEPARTMENT OF TRANSPORTATION." 



DIKES AND SHE IMPROVEMENTS FOR DREDGE MATERIAL 

CONTAINMENT AREA AT GALBRAITH GOLF COURSE." 



WHARF EXTENSION AT BERTH 68, CHARLES P. HOWARD TERMINAL, 



APPROVING PLANS AND SPECIFICATIONS FOR CONSTRUCTION AND 

INSTALLATION OF CONTAINER CRANE AT SEVENTH STREET PUBLIC 

CONTAINER TERMINAL, OAKLAND, CALIFORNIA WITH OPTIONS FOR 

ADDITIONAL CRANES; AND CALLING FOR BIDS THEREFOR." 


AWARDING CONTRACT I TO R & B EQUIPMENT RENTALS, INC., FOR 

DEMOLITION OF BUILDING H-213, 375 8TH AVENUE, OAKLAND, 





APPROVING PLANS AND SPECIFICATIONS FOR RECONSTRUCTION OF 

BERTHS 35-38, CONTAINER YARD, SEVENTH STREET TERMINAL, 




RUCT'URAL 

INSPECTION AND REPAIR OF KRUPP CRANES X413 (S/N 207011) AND 

X414 (S/N 207012), BERTH 23, OUTER HARBOR TERMINAL, OAKLAND, 



CONSENTING TO ASSIGNMENT BY MARINE I ERMINALS CORPORATION 

TO WELLS FARGO BANK OF RIGHTS TO PAYMENTS UNDER 

MANAGEMENT AGREEMENT," 

November 15, 1994 - 19 -


ACCEPTING OFFER TO ACQUIRE THE SUBCONCESSION INTEREST OF 

SOON JA KIM IN THE COFFEE SHOP/SNACK BAR AT GALBRAITH GOLF 

COURSE AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE 

ALL NECESSARY DOCUMENTS IN CONNECI'ION THEREWITH." 




RATIFYING LEAVE OF ABSENCE TO VANESSA A. BROOKS." 



SMJ CONSULTING FOR HUMAN RESOURCES CONSULTING SERVICES 





GRANTING MATSON TERMINALS, INC. PERMISSION TO PERFORM 


Port Ordinance No. being, "AN ORDINANCE AUTHORIZING THE 

EXECUTION OF A SECOND SUPPI EMENTAL AGREEMENT (FOOD AND 

BEVERAGE FACILITIES) TO A LEASE AND CONCESSION AGREEMENT WITH 

ATS-LOMBARD FOOD SERVICES AND A FIRST SUPPLEMENTAL AGREEMENT 

(NEWSSTAND AND GIFT SHOP) TO A LEASE AND CONCESSION AGREEMENT 

WITH ATS-LOMBARD SERVICES AND DIRECTING RECORDATION THEREOF," 

and Port Ordinance No. being, "AN ORDINANCE APPROVING APPRAISAL, 

ESTABLISHING JUST COMPENSATION AND AUTHORIZING AND APPROVING 

THE EXECUTION OF STANDARD PURCHASE AND SALE AGREEMENT FOR 

THE PORTS PURCHASE FROM PACIFIC GAS & ELECTRIC COMPANY ("PG&E") 

OF CERTAIN REAL PROPERTY AT THE CORNER OF CLAY AND 

EMBARCADERO STREETS," and Port Ordinance No. being, "AN ORDINANCE 

APPROVING AND AUTHORIZING EXECUTION OF CORPORATION EASEMENT 

November 15, 1994 - 20 -

DEED AND RIGHT OF WAY CONTRACT -- STATE, HIGHWAY FOR GRANT OF 

EASEMENT TO THE STATE OF CALIFORNIA COVERING CERTAIN REAL 

PROPERTY LOCATED ADJACENT TO 'THE 16TH AVENUE OVER-CROSSING," and 

Port Ordinance No. being, "AN ORDINANCE AMENDING PORT ORDINANCE 

NO. 867 CREATING TWO ADDITIONAL POSITIONS OF SENIOR EQUIPMENT 

ENGINEER," were read a first time and passed to print by the following vote: 


Noes: None 



At the hour of 4:15 p.m. the Board entered into closed session for the purpose of a 

conference with Labor Negotiators - Agency Negotiator: LE.D.A. - Employee Organization: 

Local 790, Government Code Section 54957.6; and conference with Legal Counsel - Existing 

Litigation - pursuant to subdivision (a) of Government Code Section 54956.9, Name of 

Cases: Raymond Veltman v. Port of Oakland (and all other Ports), Los Angeles County 

Superior Court Action No. BC 111333 Port Case No. 94-24-0 (CJS); and Norager, Inc. v. 

Port of Oakland, et al., Alameda County Superior Court Action No. 665465-4, Port Case No. 

90-03-C (CJS) and reconvened in open session at the hour of 4:58 p.m. 

vote: 



Noes: None 




AUTHORIZING THE PORT ATTORNEY TO ENTER INTO STIPULATION 

REGARDING PENDING AC11ON." 


- 21 -


seconded. 

AUTHORIZING 'THE PORT ATTORNEY TO EN IIER INTO STIPULATION 

REGARDING PENDING ACI1ON." 


November 15, 1994 - 22 -




The regular meeting of the Board scheduled for Tuesday, December 6, 1994, was 

adjourned by the Secretary of the Board to 3:00 p.m., Tuesday, December 13, 1994, in the 

office of the Board, second floor, 530 Water Street, Oakland, California due to the absence 

of all the members of the Board. 

* * * * * 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The adjourned regular meeting was held on Tuesday, December 13, 1994, at the hour 



session was held during the period from 3:15 p.m. to 4:10 p.m. during which time the Board 

received a comprehensive presentation on the planned improvements to the Airport food 

and beverage operation which is operated by CA One Services, Inc., Mr. Jon Luther, 

President, Mr. Mike Rauch, Operations Manager and Mr. Steve Katich, Consultant, 

appeared before the Board on the various aspects of their proposed lease revision. 




Also present were the Deputy Executive Director; Port Attorney; Assistant Port 

Attorney Thomas Clark; Director of Aviation; Director of Commercial Real Estate; Director 

of Human Resources; Director of Maritime; Director of Communications; Director of Policy 

and Strategic Planning; Chief of Facilities; Director of Finance; Director of Equal 

Opportunity; Director of Engineering; Chief Engineer; Chief of Planning; Media Relations 

Manager; and Secretary of the Board. 

The minutes of the regular meeting of November 15, 1994 were approved as 

submitted and ordered filed.

Commissioner Vohs, Chair of the Audit and Finance Sub-Committee, informed the 






Commissioner Ortiz, Chair of the Customer Employment & Business Resources 


agenda. 

Commissioner Cole, Chair of the Human Resources Committee, informed the Board 




Award of Contract or Rejection of All Bids and Authorization to Negotiate Contract 

for Reconstruction of Access Ramps Connecting Terminal 1, Buildings M101/M102 and 

M102/M103, MOIA was the subject of a memo to the Board from the Director of 

Engineering notifying the Board of the seven bids received and that the apparent low 

bidder, West Bay Builders, Inc., at $4,991,500.00, has submitted written notice showing that 

a material clerical error of $72,810.00 was made in tabulating its bid and has requested that 

they be allowed to withdraw their bid without penalty. The second low bid of SHC/Mark 

Diversified, at $5,416,204.00 is considered a responsible bidder for the purposes of this 

contract. It was recommended that the Board allow West Bay Builders, Inc. to withdraw 

their bid without penalty and award the contract to SHC/Mark Diversified. After discussion 

the recommendation was approved on passage of Resolution No. 94463. 

Approval to Hire Consultant for Negotiating Wholesale Electric Rates at the Airport 


Board that the Port retained Mr. Harrison Call of Call Co., Ltd. of Eugene, Oregon to 

December 13, 1994 - 2 -

provide Professional Services for a not-to-exceed amount of $15,000.00 to assist in 

negotiations with PG&E for an "Alternate Rate" structure to substantially lower the Port's 

wholesale rate for electric power at the Airport. The negotiations with PG&E have led to 

an offer for a new rate structure that would reduce the Port's cost of power for the Airport 

from $3,600,000.00 per year to $3,000,000.00 per year. In addition to the negotiations with 

PG&E, negotiations have been conducted by staff with the Northern California Power 

Agency (NCPA) and Destec Power Services, Inc. (Destec) for purchasing electronic power. 

NCPA and Destec, to date, have offered much better rates than PG&E, and negotiations 

with PG&E, NCPA, and Destec are still in progress. It was recommended that the Board 

approve an amendment to the contract with Call Co., Ltd., to increase the maximum amount 

to $40,000.00, to provide for additional services during the negotiations. The 



of One Year or Less with KaiserAir, Inc. was the subject of a memo to the Board from the 

Director of Aviation recommending approval to renew the agreements wit h KaiserAir, Inc., 

for 28,426 square feet of hangar space and 70,280 square feet of apron space located in and 

adjacent to Bays B and I) in Building L-710, North Airport, at $9,744.03 per month, 

effective March 1, 1994; and with KaiserAir, Inc., for 1,281 square feet of office space, 

12,648 square feet of hangar space, 3,230 square feet of shop space, a total of 1,615 square 

feet of paved and unpaved land, and 59,017 square feet of apron area, located in and 

adjacent to Building L-310 East, North Airport, at $7,358.65 per month, effective April 1, 


Approval of Agreements to Extend Right-of-Entry and Indemnity Agreements with 

the City of Oakland was the subject of a memo to the Board from the Director of Aviation 

recommending approval to extend Right-of-Entry and Indemnity Agreements with the City 

of Oakland for a portion of the former Raiders' practice field including 10 parking spaces 

and excluding Building L-911, with no rent received, effective September 3, 1993; and a 

December 13, 1994 3

successor agreement effective September 1, 1994. The recommendation was approved on 


Approval of Assignment of New Premises to American Airlines. Inc. was the subject 

of a memo to the Board from the Director of Aviation notifying the Board that American 

Airlines, Inc. occupies space in the Terminal Building and 720 square feet of apron space 

for office trailer parking adjacent to Building M-103. American's trailer parking premises 

are located in an area that will be developed as part of the Terminal One Renovation 

Project that commences in January of 1995. Due to its current location, the trailer is an 

obstacle to timely execution of that project. On June 27, 1994, American was informed in 

writing that the trailer would have to be removed by November 4, 1994 to accommodate the 

Terminal Renovation Project. On October 6, 1994, American was sent a proposed License 

and Concession Agreement which would have the effect of eliminating the trailer parking 

area from its premises. As of this date, the proposed License and Concession Agreement 

has not been executed and returned for Board approval. On November 23, 1994, staff sent 

American a letter stating that pursuant to the Right of Renovation reserved to the Board 

of Port Commissioners by Paragraph 40 of the Agreement, American would be assigned to 

new premises at the Airport. The new premises would be identical to those premises 

described in the current Agreement, except for the deletion of the 720 square feet of trailer 

parking. All other terms and conditions of the current Agreement would remain in effect 

and that immediately following assignment of American to its new premises, the Port would 

remove and dispose of the trailer at the expense of American. American would pay the 

Port $24,086.63 per month for these new premises. It was recommended that the Board 

ratify the Notice of Assignment of Premises and approve the described Assignment of 

Premises to American Airlines, Inc. The recommendation was approved on passage of 


Month-to-Month Extension of Interim Operator Agreement Currently Managing the 

Airport Parking Facility was the subject of a memo to the Board from the Director of 

December 13, 1994 4

Aviation notifying the Board that APCOA Parking was selected to manage and operate the 

Airport parking facility on an interim basis commencing October 1, 1994 and ending 

December 31, 1994, while the Port was soliciting proposals from prospective parking 

operators to manage the Airport parking facility. Response to the Request for Proposal was 

very poor, with only two operators submitting proposals. It was not in the Port's best 

interest to make a selection based on the information provided in the two proposals, and 

Airport staff has rejected both proposals. Staff is preparing a new RFP package before 

soliciting new proposals from prospective operators. It was recommended that the Board 

authorize the extension of the interim Agreement with APCOA to manage and operate the 

Airport parking facility on a month-to-month basis. The recommendation was approved on 


Airport Employee Parking Fee Increase was the subject of a memo to the Board from 

the Director of Aviation notifying the Board of the charges for the Airport Employee 

Parking Lot and that it appears some tenant employees are misusing the second permit 

decal by selling it for less than $45.00, the amount the Port charges per quarter. This 

practice, which is quite widespread, is not only causing a parking problem in the Airport 

Employee Parking Lot, but the Port loses $43.00 on every second permit decal sold for 

$2.00. It was recommended that the Board increase the $2.00 fee charged for the second 

vehicle permit decal to $45.00 per quarter, or $180.00 annually, effective January 1, 1995. 


An Ordinance Amending Section 9 of Port Ordinance 1149 Relating to Charges for 

Use of Facilities at Metropolitan Oakland International Airport was the subject of a memo 

to the Board from the Director of Aviation notifying the Board of the rates and charges 

established for the storage of air cargo aircraft and that these rates were last adjusted 

effective May 23, 1989. It was recommended that the Board adopt an ordinance reflecting 

a new fee schedule with an effective date of February 1, 1995, which provides for better 

continuity between the North and South Airports. The basic monthly fee for the South 

December 13, 1994 

5

Airport would be $.108 per square foot for the aircraft working area and $.079 per square 

foot for the North Airport. The recommendation was approved on passage of an ordinance 

to print. 

Approval for Submittal of Preapplication to Federal Aviation Administration was the 

subject of a memo to the Board from the Director of Aviation notifying the Board that the 

Federal Aviation Administration has approximately $2.3 million in entitlement funds 

available under the Airport Improvement Program for the Fiscal Year 1995, and a 

preapplication must be submitted as soon as possible in order to apply for these funds. It 

is proposed that the Port's $2.3 million entitlement funds will be used for the overlay of 

Runway 27L Project at the Airport. The total estimated cost is $2,859,427.00 with the Port's 

share at $555,015.00. It is intended that the Port share will be funded through the Passenger 

Facility Charges Program. It was recommended that the Board approve the submittal of the 

AIP preapplication to the Federal Aviation Administration for the project. The 


Award of Contract for Removal of Underground Waste Oil Tank MF-18. Building 

M-105 was the subject of a memo to the Board from the Director of Engineering notifying 

the Board of the eleven bids received and recommending award of the contract to 

Environmental Investigation and Action, Inc., the low bidder, at $29,930.00. The 


Approval of a Month-to-Month Franchise Agreement with Ramada. Hotel Franchise 

System. Inc. for the Property Located at 455 Hegenberger Road was the subject of a memo 

to the Board from the Director of Commercial Real Estate notifying the Board of the Port's 

operation of the hotel and recommending approval of a month-to-month agreement with the 

Ramada Hotel Franchise System, Inc. The agreement would allow the Port's Ramada to 

be on the national reservation system. The Port would be obligated to pay 7.5% of the 

monthly gross revenues to the Ramada Franchise which would be approximately $15,000.00, 

based on the current and projected revenue. It is anticipated that the occupancy of the 

December 13, 1994 - 6 -

hotel would increase by at least 10% by providing the leasing of approximately 30 room 

rentals per night at a higher average daily room rate than is currently generated. Revenue 

is projected to increase by approximately $63,000.00 a month, but the expenses for operating 

the hotel would increase with the additional occupancy. The recommendation was approved 


Approval of Professional Services Contract with Donald James Winter was the 


Board that the Port hired Donald James Winter as a consultant to analyze the interim hotel 

management proposals, develop an operating budget, act as an expert witness in the 

bankruptcy hearing, assist in the development of the economic parameters for the Port 

takeover, and develop a target list of hotel entities to lease the Ramada Hotel on a long- 

tem' basis. Payment for his professional services have approached the limit of $15,000.00 

over the 7-month period. It was recommended that the Board authorize a professional 

service contract with Donald James Winter for a maximum additional amount of $10,000.00 

to assist with the lease negotiation to finalize the Ramada Hotel transaction. The 


Approval of City Land Purchase and Realignment of the "Port Area Line" was the 


Board that the land involved is all within the "Port Area", and Section 712 of the City 

Charter provides, in relevant part, as follows: ". . no property shall be acquired or 

sold . . . in the 'Port Area' by the City of Oakland, or the Council thereof, without approval 

of the Board [of Port Commissioners]." In 1981 the City of Oakland purchased 

approximately 1.21 acres of property within the "Port Area" without first obtaining Board 

approval. The land was originally purchased by the City for street purposes to provide a 

connector street between Alameda Avenue and High Street. After construction of the 

street, vacant pieces of land existed to the northeast and southwest of the street. The City 

has sold the southwesterly .15 acres to an adjoining property owner and is interested in 

December 13, 1994 7

selling the .5 acres of land to the northeast as surplus land. It was recommended that the 

Board approve the original acquisition of land by the City of Oakland within the "Port Area" 

on the condition that the land be removed from the "Port Area"; and recommend to the City 

Council that the "Port Area" be changed to reflect the removal of the 1.93 acre area 

described from within the "'Port Area". The recommendation was approved on passage of 


First Reading of an Ordinance Authorizing the Grant of Easements in Alice Street 

to East Bay Municipal Utility District was the subject of a memo to the Board from the 

Director of Commercial Real Estate notifying the Board that the East Bay Municipal Utility 

District has two existing water lines in the vacated section of Alice Street where the Port 

is building the plaza area of the Amtrak Station. During the vacation action for Alice 

Street, the City of Oakland required that the Port reserve easements for the utilities located 

within the street. EBMUD has approved the paving of the area over their water lines on 

the condition that the Port would remove and replace the pavers whenever EBMUD needed 

to work on the water line. It was recommended that the Board authorize the execution of 

the two easements with EBMUD. The recommendation was approved on passage of an 


Approval of First Supplemental Agreement to the Dealey, Renton & Associates Lease 

- Provides for Adjustment of Square Footage., Monthly Rental Rate, and Broker 

Eommissi n • and Re tQ,AippL*ovOWAInodizeDccessive Tenant Improvement Costs as 

Additional Rent was the subject of a memo to the Board from the Director of Commercial 

Real Estate notifying the Board of the lease with Dealey Renton & Associates for slightly 

more than one-half of the office space on the 2nd floor of Port Building F-107. The lease 

included a sketch of the premises and recited that it contained approximately 16,114 

rentable square feet. Based on the final C.A.D. calculation, the actual square footage is 

16,228 square feet instead of the 16,114 square feet previously reported. This change in 

square footage does not increase the intended area of the premises but will result in an 

December 13, 1994 8

increase in the monthly rental rate from $21,819.00 to $22,058.23 or $1.36 per square foot. 

The broker commission, payable to James W. Gann Commercial Real Estate and Norheim 

& Yost, will increase from the previous total of $67,857.09 to $68,602.62. The Port was to 

construct tenant improvements to the lease premises, not to exceed $29.95 per square foot. 

With tenant change orders, and other contingencies, the actual tenant improvement costs, 

including construction, architectural & engineering, and other soft costs,, is approximately 

$31.52 per square foot. This exceeds the allowance by $25,449.00. The tenant has agreed 

to pay for these additional costs, and requests that the Port allow the repayment to be 

amortized, as additional rent, over the lease term, on a straight-line basis. The additional 

rent would be $431.34 per month, which will increase the overall monthly rental rate to 

$22,489.57 or $1.3858 per square foot. It was recommended that the Board approve and 

authorize execution of a First Supplemental Agreement to the Dealey, Renton & Associates 

Lease providing for the changes. The recommendation was approved on passage of 


Approval of Building Permit Application for Dow-Pac Properties, Foundation 

Construction - JLS Movie Theatre, 100 Washington Street (Lot 12) was the subject of a 

memo to the Board from the Director of Engineering recommending approval for the 

construction of the foundation for the theater. The foundation work will include installing 

approximately 100 concrete piles; concrete grade beams to support future walls and floor 

slab; and installing a plastic vapor barrier as required by the remediation plan. The 

estimated cost of the proposed Phase II foundation work is $750,000.00. The environmental 

document for the project was previously approved by the Board. The recommendation was 


Approval of Building Permit Application for Larry Chao and Julie Chao, as husband 

and Wife, Tenant Improvements, Cove IV Office Building, 2000 Embarcadero was the 

subject of a memo to the Board from the Director of Engineering recommending approval 

for the construction of tenant improvements on the first, fourth and fifth floors of the 


9

uilding. The estimated cost of the proposed work is $865,000.00. The improvements are 

categorically exempt and do not require the preparation of an environmental document. 


Award of Contract for Demolition of Building E-407A. Charles P. Howard Terminal 


Board of the five bids received and recommending award of the contract to Iconco, Inc., the 

low bidder, at $277,064.20. The recommendation was approved on passage of Resolution 

No. 94475. 

Seventh Supplemental Agreement with Maersk Pacific to Reflect Modifications to 

the Container Freight Station at 707 Ferry Street was the subject of a memo to the Board 

from the Director of Maritime notifying the Board of the Agreement between Maersk 

Pacific, Ltd. and the Port for the area comprising of approximately 8.7 acres of land and 

related improvements with a monthly rental of $41,251.02. Maersk has informed the Port 

that current costs and volume are making it increasingly difficult to operate the CFS at the 

prevailing rental rate and Maersk wishes to vacate approximately 1.4 acres surrounding the 

CFS consisting primarily of the transload and automobile parking area. It was 

recommended that the Board approve the Seventh Supplemental Agreement with Maersk 

Pacific, Ltd. which will delete the transload and automobile parking area from the CFS 

assigned area. The offsetting rental adjustment resulting from this deletion will cause the 

overall CFS rental to be reduced to $35,101.60 per month. The recommendation was 


Recommend Amendment to Port Ordinance No. 3230 Authorizing Transfer of Port 

South Baytoll Property to Caltrans was the subject of a memo to the Board from the 

Director of Maritime notifying the Board of the previous approval to grant fee and 

easement rights to the State of California for the Cypress Replacement Project. Since the 

original approval in September 1994, there have been some small modifications, and it was 

recommended that the Board approve a Resolution to amend Ordinance No. 3230 which 

December 13, 1994 - 10 -

authorizes transfer of Port South Baytoll Property to Caltrans. The change includes a 

reduction of acreage from 1.043 acres to 1.008 acres, and the configuration of the parcel has 

been slightly modified. The recommendation was approved on passage of Resolution No. 

94476. 

Award of Contract for 1995 Structural Inspection and Repair of Paceco Cranes was 

the subject of a memo to the Board from the Director of Engineering notifying the Board 

of the one bid received and recommending award of the contract to Marine Maintenance, 

Inc., the low bidder, at $94,660.00. The recommendation was approved on passage of 


Approval to Ratify Extension of Bid Period for Construction of Wharf Extension at 

Berth 68, Charles P. Howard Terminal was the subject of a memo to the Board from the 

Director of Engineering notifying the Board that the Board previously approved plans and 

specifications and authorized advertising for bids for the Construction of Wharf Extension 

at Berth 68, Charles P. Howard Terminal, with the bids to be received on December 21, 

1994. Since the plans and specs have been available, the Port has received requests from 

contractors to extend the bid period. Several contractors have indicated that because of the 

complexity of the project and the timing with the holidays, a better bid price would be 

obtained with the longer bid time. Staff has reviewed the request with respect to the project 

schedule and receipt of the necessary permits. It now appears that the permits will not be 

granted until mid to late January so that an extension in the bid period would not delay the 

schedule. It was recommended that the Board ratify the movement for receipt of bids from 

December 21, 1994 to January 11, 1995. The recommendation was approved on passage of 



Resources recommended the appointments of Forrest A. Reed, as Port Land Surveyor, 

effective January 3, 1995, at $5,242.00 per month; Michael D. Collins, as Senior Equipment 

Systems Engineer, effective December 14, 1994, at $4,703.00 per month; Michael V. 

December 13, 1994 - 11 -

Mantino, as Senior Equipment Systems Engineer, effective December 14, 1994, at $4,703.00 

per month; Noel Pinto-Correia, as Airport Parking/Ground Transportation Administrator, 

effective December 14, 1994, at $3,962.00 per month; Vanessa A. Brooks, as Senior Account 

Clerk, effective December 14, 1994, at $3,036.00 per month; Edward L. Schmucker, as 

Youth Aide, Class "BB", effective December 14, 1994, at $12.95 per hour; and Hermenegilda 

Ocampo and Socorro Pena, as Relief Airport Custodians, effective December 19, 1994, at 

$10.36 per hour. Also recommended were the rescissions of appointments for Eva Topete 

and Regina Crump, as Relief Airport Custodians, effective November 21, 1994; and medical 

leaves of absence for Deborah E. Hill-Thomas, Intermediate Stenographer Clerk, for 68 

working days through March 1, 1995; and Doris Craig, Commercial Representative III-A, 

for 63 working days through March 6, 1995. 

Mr. Edward Schmucker appeared before the Board to ask for reconsideration 

concerning the loss of his drivers license and recommended assignment to the Port's 

Permanent Employees on Temporary Assignment (PETA) program which provides for 

continued employment at a reduced salary until the drivers license is regained. The Board 

responded that the recommendation was in keeping with the Port's policies and procedures 

and unless new information on Mr. Schmucker's status became available, they would confirm 

the recommendation. The recommendations were approved on Resolution No. 94484 for 

amended appointments; Resolution No. 94485 for leaves of absence; and Resolution No. 

94486 for appointments. 

Renewal of Agreement Between Port of Oakland and Lynn M. Suter & Associates was 

the subject of a memo to the Board from the Director of Communications recommending 

approval to renew the contract for State government representation with Lynn M. Suter & 

Associates. The proposed maximum annual compensation is set at $90,576.00 which 

includes retainer, $81,576.00 per year; expenses, $2,400.00 per year; and computer, $6,600.00 

per year. The new agreement would also contain an option for the Executive Director to 

extend the agreement for one additional year (1996) with an increase in maximum annual 

December 13, 1994 - 12 -

compensation of no more than 5 percent. The recommendation was approved on passage 


Mr. Henry William, a concerned West Oakland citizen, appeared before the Board 

to note that he has been active in training young people for truck driving jobs and he was 

very interested in establishing an academy for this purpose. He further asked for financial 

help and Port space for his academy. The information was received without comment as 

to Port support. 

Ms. Lynn Rollerson, Senior Secretary, appeared before the Board to note that she 

was being transferred out of the Equal Opportunity Department into the Construction 

Department and she preferred to stay in the Equal Opportunity Department as that area 

was her specialty. As the transfer did not require Board approval, the subject was referred 

to the Board Human Resources Committee for review only. 

At the hour of 5:00 p.m. the Board entered into closed session for conference with 

legal counsel, existing litigation, pursuant to subdivision (a) of Government Code Section 

54956.9, Fred Grimes v. Port of Oakland, et al., Alameda. County Superior Court Action No. 

667788-3 (Port Case No. 90-042-C; conference with legal counsel, anticipated litigation, 

significant exposure to litigation pursuant to subdivision (b) of Government Code Section 

54956.9; and conference with legal counsel, anticipated litigation, initiation of litigation 

pursuant to subdivision (c) of Government Code Section 54956.9, and reconvened in open 

session at the hour of 5:40 p.m. during which time Commissioner Vohs was excused from 

the meeting. 

vote: 


Ayes: Commissioners Broussard, Cole, Kramer, Loh, Ortiz, Vohs 

Noes: None 

Absent: None 


December 13, 1994 - 13 -


RELIEVING WEST BAY BUILDERS, INC. OF ITS BID FOR 

RECONSTRUCTION OF ACCESS RAMPS CONNECTING'TERMINAL 1 

BUILDINGS M-101/M-102 & M-102/M-103, SOUTH FIELD, METROPOLITAN 

OAKLAND INTERNATIONAL AIRPORT, OAKLAND, CALIFORNIA; 

AWARDING CONTRACT TO SHC/MARK DIVERSIFIED, INC., A JOINT 

VENTURE; FIXING THE AMOUNT OF BONDS TO BE PROVIDED IN 






("RENEWAL AGREEMENTS") WITH KAISERAIR, INC. (TWO 

AGREEMENTS)." 



AGREEMENTS TO EXTEND RIGHT-OF-ENTRY AND INDEMNITY 

AGREEMENTS ("EXTENSION AGREEMENTS") WITH THE CITY OF 

OAKLAND (TWO AGREEMENTS)." 


RATIFYING AND APPROVING THE NOTICE OF ASSIGNMENT OF 

PREMISES TO AMERICAN AIRLINES, INC. ("AMERICAN") AND 

APPROVING THE ASSIGNMENT OF PREMISES." 


APPROVING AND AUTHORIZING EXECUTION OF EXTENSION 

AGREEMENT TO INTERIM PARKING MANAGEMENT AGREEMENT WITH 

APCOA INC." 


AUTHORIZING THE EXECUTIVE DIRECTOR TO FILE PREAPPLICATION 

WITH THE FEDERAL AVIATION ADMINISTRATION UNDER THE 

AIRPORT IMPROVEMENT PROGRAM, FISCAL YEAR 1995." 


AWARDING CONTRACT TO ENVIRONMENTAL INVESTIGATION AND 

ACTION, INC., FOR REMOVAL OF WASTE OIL STORAGE TANK MF-18 AT 

BUILDING M-105, SOUTH FIELD, METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT, OAKLAND, CALIFORNIA; FIXING THE 



BIDDERS." 


- 14 -



DONALD J. WINTER CONSTITUTES AN AGREEMENT FOR PROFESSIONAL 

OR SPECIALIZED SERVICES AND AUTHORIZING EXECUTION OF SAID 

AGREEMENT." 


REQUESTING THE CITY COUNCIL TO ALTER ER THE PORT AREA BY 

REMOVAL OF APPROXIMATELY 1.93 ACRES FROM THE PORT AREA 

AND, SUBJECT TO SUCH ALTERATION, APPROVING OF THE CITY'S 

ACQUISITION AND SALE OF LAND AND CONSTRUCTION AND OPENING 

OF A STREET LOCATED IN SAID 1.93-ACRE PORTION OF THE PORT 

AREA." 


APPROVING FIRST SUPPLEMENTAL AGREEMENT TO TEASE WITH 

DEALEY, RENTON & ASSOCIATES INSURANCE BROKERS AND 

AMENDING PORT RESOLUTION NO. 94285 BY INCREASING BROKERAGE 

COMMISSION." 


GRANTING FIRST GUARANTY EXCHANGE COMPANY PERMISSION TO 



GRANTING LARRY P. CHAO AND JULIE C. CHAO PERMISSION TO 



AWARD CONTRACT TO ICONCO, INC., FOR DEMOLITION OF BUILDING 

E-407A, CHARLES P. HOWARD TERMINAL, OAKLAND, CALIFORNIA; 

FIXING THE AMOUNT OF BONDS TO BE PROVIDED IN CONNECTION 

THEREWITH REJECTING ALL OTHER BIDS; AND DIRECTING RETURN 



AUTHORIZING EXECUTION OF SEVENTH SUPPLEMENTAL AGREEMENT 

WITH MAERSK PACIFIC, LTD." 


AWARDING CONTRACT TO MARINE MAIN I ENANCE INC., FOR 1995 

STRUCTURAL INSPECTION AND REPAIR OF PACECO CRANES X-411 (S/N 

710) AND X-412 (S/N 711), BERTHS 25 AND 26, OUTER HARBOR 

'TERMINAL, PORT OF OAKLAND, OAKLAND, CALIFORNIA; AND FIXING 

THE AMOUNT OF BONDS TO BE PROVIDED IN CONNECT HON 

THEREWITH." 

December 13, 1994 - 15 -


RATIFYING 

11-. YING EXTENSION OF BID PERIOD FOR CONS 1 RUCTION OF 

WHARF EXTENSION AT BERTH 68, CHARLES P. HOWARD 'IERMINAL." 


FINDING AND DETERMINING 

ERMINING THAT A PROPOSED AGREEMENT WITH 

LYNN M. SU'I'ER & ASSOCIATES FOR I FGISLATIVE REPRESENTATION 





GRANTING UNITED AIR LINES, INC. PERMISSION TO PERFORM CERTAIN 

WORK" 


GRANTING RALSTON PURINA INTERNATIONAL, INC. PERMISSION TO 



vote: 

GRANTING THE UNITED STATES OF AMERICA PERMISSION TO 



Ayes: Commissioners Cole, Kramer, Loh, Ortiz, Vohs and 

Noes: None 

Vice President Broussard - 6 



FINDING AND DE I ERMINING THAT IT IS IN THE BEST IN I EREST OF 

THE PORT TO ENTER A FRANCHISE AGREEMENT WITH RAMADA 

FRANCHISE SYSTEMS, INC. ON A MONTH-TO-MONTH BASIS NOT TO 

EXCEED SIX MONTHS AND AUTHORIZING EXECUTION OF SAME." 


FINDING AND DE I ERMINING THAT A PROPOSED PURCHASE ORDER 

CONTRACT FOR PROFESSIONAL SERVICES WITH CALL CO., LTD. FOR 


SERVICES AND WAIVING COMPEI I I IVE BIDDING; AND AUTHORIZING 

EXECUTION OF SAID CONTRACT." 

December 13, 1994 - 16 -







Ayes: Commissioners Cole, Kramer, Ortiz, Vohs and 





vote: 



Ayes: Commissioners Cole, Kramer, Loh, Ortiz and 

Noes: None 


Absent: Commissioner Vohs and President Lockhart - 2 


APPROVING AND AUTHORIZING FILING OF A COMPLAINT AGAINST 

RANSOM-McKAY GOLF, INC. AND TERMINATION OF UTILITY SERVICE." 


AUTHORIZING THE PORT ATTORNEY TO MAKE A SE I 1LEMENT OFFER 

IN THE MAUER OF FRED GRIMES v. PORT OF OAKLAND." 

Port Ordinance No. 3244 being, "AN ORDINANCE AUTHORIZING THE 

EXECUTION OF A SECOND SUPPLEMENTAL AGREEMENT (FOOD AND 

BEVERAGE FACILI I IES) TO A LEASE AND CONCESSION AGREEMENT WITH 

ATS-LOMBARD FOOD SERVICES AND A FIRST SUPPLEMENTAL AGREEMENT 

December 13, 1994 - 17 -

(NEWSSTAND AND GIFT SHOP) TO A LEASE AND CONCESSION AGREEMENT 

WITH ATS-LOMBARD SERVICES AND DIRECTING RECORDATION THEREOF," 

and Port Ordinance No. 3245 being, "AN ORDINANCE APPROVING APPRAISAL, 

ESTABLISHING JUST COMPENSATION AND AUTHORIZING AND APPROVING 

THE EXECUTION OF STANDARD PURCHASE AND SALE AGREEMENT FOR 

THE PORTS PURCHASE FROM PACIFIC GAS & ELECTRIC COMPANY ("PG&E") 

OF CERTAIN REAL PROPERTY AT THE CORNER OF CLAY AND 

EMBARCADERO STREETS," and Port Ordinance No. 3246 being, "AN ORDINANCE 

APPROVING AND AUTHORIZING EXECUTION OF CORPORATION EASEMENT 

DEED AND RIGHT OF WAY CONTRAC1 --STATE HIGHWAY FOR GRANT OF 

EASEMENT TO THE STA IE OF CALIFORNIA COVERING CERTAIN REAL 

PROPERTY LOCATED ADJACENT TO THE 16TH AVENUE OVER-CROSSING," and 

Port Ordinance No. 3247 being, "AN ORDINANCE AMENDING PORT ORDINANCE 

NO. 867 CREATING TWO ADDITIONAL POSITIONS OF SENIOR EQUIPMENT 

ENGINEER," were read a second time and passed by the following vote: 


Noes: None 



Port Ordinance No. being, "AN ORDINANCE AMENDING SECTION 10.10 

OF PORT ORDINANCE NO. 1149 RELATING TO CHARGES FOR USE OF ILNANT 

EMPLOYEE PARKING FACILITIES AT METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT," and Port Ordinance No. being, "AN ORDINANCE 

AMENDING SECTION 9 OF PORT ORDINANCE NO. 1149 RELATING TO 

CHARGES FOR USE OF FACILITIES AT METROPOLITAN OAKLAND 

INTERNATIONAL AIRPORT," and Port Ordinance No. being, "AN ORDINANCE 

APPROVING AND AUTHORIZING THE GRANT OF EASEMENT TO EAST BAY 


- 18 -

MUNICIPAL UTILITY DISTRICT FOR WA I ER LINES IN VACATED SECTION OF 

ALICE S I REET," and Port Ordinance No. being, "AN ORDINANCE AMENDING 

PORT ORDINANCE NO. 3230, AN ORDINANCE APPROVING AND AUTHORIZING 

EXECUTION OF RIGHT OF WAY CONTRACT FOR SALE TO STATE OF 

CALIFORNIA OF FEE AND EASEMENTS IN CERTAIN REAL PROPERTY 

LOCATED SOUTH OF BAY BRIDGE TOLL PLAZA," and Port Ordinance No. 

being, "AN ORDINANCE AMENDING PORT ORDINANCE NO. 867 FIXING THE 

COMPENSATION OF EMPLOYEES IN THE PORT DEPARTMENT IN THE 

ENGINEERING SUPERVISORY/ADMINIS 1RATIVE UNIT," were read a first time and 


seconded. 


Noes: None 




* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

The regular meeting of the Board scheduled for 3:00 p.m., Tuesday, December 20, 

1994, was adjourned by the Secretary of the Board due to the absence of all the members 


December 13, 1994 - 19 

(IA oard

REGULAR MEETING OF THE BOARD OF PORT ... - Port of Oakland

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