Download - PORT OF OAKLAND...ARNEL ATIENZA Port Auditor JOHN T. BETTERTON Secretary of the Board PORT OF OAKLAND BOARD OF PORT COMMISSIONERS 530 Water Street Oakland, …

J. CHRISTOPHER LYTLEExecutive Director

DANNY WANPort Attorney

ARNEL ATIENZAPort Auditor

JOHN T. BETTERTONSecretary of the Board

PORT OF OAKLANDBOARD OF PORT COMMISSIONERS530 Water Street 1 Oakland, California 94607(510) 627-1696(w)1(510) 839-5104(f)1TDD/TTY 711

E-Mail: [email protected]: www.portofoakland.com

AGENDA

CESTRA BUTNERPresident

ALAN S. YEEFirst Vice-President

EARL HAMLINSecond Vice-President

MICHAEL COLBRUNOCommissioner

JAMES W. HEADCommissioner

BRYAN R. PARKERCommissioner

VICTOR UNOCommissioner

Meeting of the Board of Port Commissioners

May 8, 2014 – 1:00 p.m.

Board Room – 2nd Floor

ROLL CALL

Commissioner Colbruno, Commissioner Head, Commissioner Parker, Commissioner Uno, 2nd Vice-President Hamlin, 1st Vice President Yee and President Butner.

1. CLOSED SESSION

Closed Session discussions and materials may not be disclosed to a person not entitled to receive it, unless the Board authorizes disclosure of that confidential information.

1.1 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant to Paragraph (1) of Subdivision (d) of California Code Section 54956.9):

CMC Food Services LLC and NNF Grewal, Inc., v. Port of Oakland, et al.; Alameda County Superior Court Case No.: RG13685134

1.2 CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of California Government Code Section 54956.9 1 matters

1.3 CONFERENCE WITH REAL PROPERTY NEGOTIATORS – (Pursuant to California Government Code Section 54956.8):

Property: Oakland Army BaseNegotiating Parties: Port of Oakland and CCIG/PrologisAgency Negotiator: Director of Maritime, John DriscollUnder Negotiation: Price and Terms of Tenancy

AGENDA

1

2

Property: 555 Maritime StreetNegotiating Parties: Port of Oakland and Various PartiesAgency Negotiator: Director of Maritime, John DriscollUnder Negotiation: Price and Terms of Tenancy

Property: Roundhouse Middle Harbor RdNegotiating Parties: Port of Oakland and Pinnacle Ag Services Inc.Agency Negotiator: Director of Maritime, John DriscollUnder Negotiation: Price and Terms of Tenancy

1.4 THREAT TO PUBLIC SERVICES OR FACILITIES – (Pursuant to California Government Code Section 54957).

Consultation with: Aviation Security Manager

ROLL CALL/OPEN SESSION (Approximately 3:00 p.m.)

Commissioner Colbruno, Commissioner Head, Commissioner Parker, Commissioner Uno, 2nd Vice-President Hamlin, 1st Vice President Yee and President Butner.

CLOSED SESSION REPORT

The Port Attorney or Board Secretary will report on any final actions taken in Closed Session.

2. CONSENT ITEMS

Action by the Board under “Consent Items” means that all matters listed below have been summarized and will be adopted by one motion and appropriate vote. Consent Items may be removed for further discussion by the Board at the request of any member of the Board.

2.1 Resolution: Authorization to Enter into an Agreement to Renew Microsoft Software Licensing for up to 5 Years (Finance & Admin)

2.2 Building Permit Application: Gary Liu – Install Grade-Level Truck Scale For Use By The Tenant (Engineering)

2.3 Building Permit Application: Dollar Rent A Car – Relocate Existing Dollar Booth Within Assigned Parking Area (Engineering)

2.4 Building Permit Application: Shell Pipeline Company – Removal Of Existing Gas Pipeline From The Perimeter Dike (Engineering)

2.5 Ordinance No. 4287, 2nd Reading Of An Ordinance Approving And Authorizing The Executive Director To Execute A Grant Of Easement To East Bay Municipal Utility (“EBMUD”) To Relocate An Existing Water Line Along 14th Street, Oakland, Ca.

AGENDA

2

3

2.6 Ordinance No. 4288, 2nd Reading Of An Ordinance Amending Port Ordinance No. 3634 Relating To Fingerprinting Fees At Metropolitan Oakland International Airport.

2.7 Ordinance No. 4289, 2nd Reading Of An Ordinance Approving And Authorizing A Space/Use Permit With Swissport Fueling, Inc., To Continue Providing Into-Plane Fueling Services At Oakland International Airport.

2.8 Ordinance No. 4290, 2nd Reading Of An Ordinance Approving An Airline Operating Agreement With Norwegian Air Shuttle ASA.

2.9 Report: Quarterly Report of Construction Change Orders for 3rd Quarter FY 13/14(Engineering)

3. MAJOR PROJECTS

This segment of the meeting is reserved for action and discussions regarding the status of Major Projects and issues of special importance.

4. BUDGET & FINANCE

This segment of the meeting is reserved for action or discussion regarding the status of Budget and Finance issues.

5. STRATEGY & POLICY

This segment of the meeting is reserved for action or discussion on Strategy and Policy Issues.

5.1 Resolution: Designation of a Standing Audit Committee of the Board of Port Commissioners (Finance/Admin & Legal)

6. REMAINING ACTION ITEMS

Remaining Action Items are items not previously addressed in this Agenda that may require staff presentation and/or discussion and information prior to action by the Board.

7. UPDATES/ANNOUNCEMENTS

The President, Members of the Board and the Executive Director will report on noteworthy events occurring since the last Board Meeting.

8. SCHEDULING

This segment of the meeting is reserved for scheduling items for future Agendas and/or scheduling Special Meetings

AGENDA

3

4

OPEN FORUM

The Board will receive public comment on non-agenda items during this time. Please fill out a speaker card and present it to the Secretary of the Board.

ADJOURNMENT

The next Regular Meeting of the Board will be held on May 22, 2014.

AGENDA

4

5

PUBLIC PARTICIPATION

To Speak on an Agenda Item

You may speak on any item appearing on the Agenda. Please fill out a Speaker’s Card and give it to the Board Secretary before the start of the meeting or immediately after conclusion of Closed Session. Cards received after the start of the meeting will be treated as a single request to speak in Open Forum. All speakers will be allotted a minimum of one minute.

To Receive Agendas & Related Materials

Should you have questions or concerns regarding this Agenda, or wish to review any of the Agenda Related Materials, please contact the Board Secretary, John Betterton, at:(510) 627-1696, or visit our web page at: www.portofoakland.com

To receive Port Agendas and Agenda Related Materials by email, please email your request to: [email protected]

Disability Related Modifications

Any person who requires a disability-related modification or accommodation, including auxiliary aids or services, in order to participate in the meeting, may submit a written request, electronic request, or telephone request [via the California Relay Service (telephone) for the hearing impaired at (800) 735-2922], to the Secretary of the Board no later than five working days prior to the scheduled meeting date.

John Betterton, Secretary of the Board530 Water Street, Oakland, CA 94607

[email protected](510) 627-1696

Language & Interpretive Services

As a grantee of federal aid grant funds from the US Department of Transportation, the Port is responsible for ensuring equal access to its programs, services, and benefits. To request bilingual interpreters or materials in alternate formats, please contact the Assistant Secretary of the Board no later than five working days prior to the scheduled meeting date.

Daria Edgerly, Assistant Secretary of the Board530 Water Street, Oakland, CA [email protected](510) 627-1337

Scented Products

Please refrain from wearing scented products to this meeting so attendees who experience chemical sensitivities may attend.

AGENDA

5

6

Commissioner’s Statement of Intention

We are a governing Board whose authority lies with the entirety of the Board.

We govern in accordance with our fiduciary duty to the Port of Oakland.

We conduct ourselves with clarity and transparency, grounded in the principles of integrity, trust and respect.

We reach our decisions through candid, open and deliberative debate and hold both staff and ourselves accountable for implementing them.

AGENDA

6

CONSENT ITEMS

Action by the Board under “Consent Items” means that all matters listed below have been summarized, and are considered to be perfunctory in nature, and will be adopted by one motion and appropriate vote. Consent Items may be removed for further discussion by the Board at the request of any member of the Board.

CONSENT ITEMS Tab 2

7

BOARD MTG. DATE: 5/8/14

302206 1

AGENDA REPORT

TITLE: Authorization to Enter into an Agreement to Renew Microsoft Software Licensing for 5 Years

AMOUNT: Not to Exceed 1,039,500 ($945,000 with a 10% contingency) for Five Years

PARTIES INVOLVED:

Corporate Name LocationMicrosoft Corp. Redmond, WA

En Pointe TechnologiesInsight EnterprisesCompuCom SystemsDell MarketingPCM (PC Mall)Softchoice

Gardena, CATempe, AZDallas, TXRound Rock, TXEl Segundo, CASan Francisco, CA

TYPE OF ACTION: Resolution

SUBMITTED BY: Sara Lee, Chief Financial OfficerRon Puccinelli, Chief Technology Officer

APPROVED BY: J. Christopher Lytle, Executive Director

SUMMARY

The Port is licensed to use various Microsoft products such as Windows, Office Suite, and Office 365 on its computers and servers. The current Microsoft licensing is set to expire on May 31, 2014. Port staff is requesting authorization under Port Ordinance 1606, Section 8 “Competitive Purchasing Agreements”, to utilize the County of Riverside’s competitive bid process for a Microsoft licensing agreement and enter into an agreement for Microsoft software licensing for five years. The County of Riverside Microsoft Licensing Agreement is the vehicle by which Microsoft has authorized the lowest available pricing for California state and local government agencies.

FACTUAL BACKGROUND

The Port relies heavily on Microsoft products. Microsoft products used at the Port include Office 365 (email, calendaring, on-line conferencing, file sharing, collaboration), Office Suite (Word, Excel, PowerPoint, Outlook, Access), database servers, Windows (both desktop and server versions), and individual programs (Project, Visio, Visual Studio). Port staff anticipates continued usage of Microsoft products for the term of the agreement as they are industry standard and few truly viable alternatives exist. The Port currently has two different licensing agreements with Microsoft which do not

CONSENT ITEMS Tab 2.1

8


302206 2

provide the same level of discounts as obtained through the County of Riverside Microsoft Licensing Agreement.

ANALYSIS

It is essential that the Port renew licensing for the Microsoft products currently being used. Without the renewal, the Port would no longer have access to Office 365 which provides email, calendaring, online conferencing, file sharing and collaboration functions. Additionally, the Port will not be able to contact Microsoft technical support, create new servers or have access to the latest versions of Microsoft’s software.

The Port is currently licensed for the following products and licenses:

Product Number of Licenses

Windows (for computers) 635Windows (for servers) 56Database servers 28Office 365 & Office Suite 550Project 50Visio 30Visual Studio for programmers 1

The Port must maintain the above number of licenses in excess of the budgeted 494 full time employees because the Port has a computer training room with computers, anAirport security training room with computers, conference rooms with computers, computer kiosks, loaner computers, as well as providing computers for interns. Additionally, some software systems require dedicated computers to function. Microsoft also requires licenses for mobile devices accessing Microsoft software used by the Port.

The County of Riverside’s formal competitive bid process for Microsoft softwarelicensing authorized six resellers as listed on page 1 of this Agenda Report under “Parties Involved”. The County of Riverside Microsoft Licensing Agreement is the vehicle by which Microsoft has authorized the lowest available pricing for California State and local government agencies.

Port Ordinance 1606, Section 8 “Cooperative Purchasing Agreements” states “The Executive Director, where advantageous to the Port, may use cooperative purchasing agreements approved by the Board, purchase supplies or services through contract or other governmental jurisdictions or public agencies without separate formal bidding by the Port.” Staff is requesting authorization to use the County of Riverside cooperative purchasing agreement for Microsoft licensing in lieu of a separate formal bid process.

In consultation with the Purchasing Department, staff will conduct an informal solicitation among the six resellers authorized under the competitively bid County of Riverside Microsoft Licensing Agreement. The authorized resellers have discretion to determine the final cost for the requested licenses within the ranges committed to in the


9


302206 3

County of Riverside Microsoft Licensing Agreement. Soliciting quotes from each of the authorized resellers ensures the Port receives the lowest pricing.

Consolidating the Port’s two existing Microsoft licensing agreements into a single agreement, provides the Port with better pricing and gains the following benefits:

∑ Twenty-four hour-a day access to Microsoft technical support∑ Security and functional patches, enhancements, updates, and new versions∑ Flexibility to respond to changing business priorities∑ A cost-effective method to acquire Microsoft software licenses and cloud services∑ Improved manageability of our Microsoft licensing

Microsoft requires all companies to perform an annual licensing ‘true-up.’ During this ‘true-up’ process, the Port will report and pay for additional licensing added throughout the year, if any. As a result, the total cost of renewal may increase year to year. Port staff does not expect the price to increase more than 10% over the next five years, and the requested amount in this agenda report will cover any additional licensing needs.

Port staff recommends that the Board of Port Commissioners authorize the Executive Director to utilize the Microsoft licensing cooperative purchasing agreement developedby the County of Riverside and to enter into an agreement with the lowest responsible reseller identified through the Port’s informal solicitation for a five year agreement paid in annual installments, the total amount not to exceed $1,039,500 ($945,000 with a 10% contingency), over the five year term of the agreement.

STRATEGIC PLAN ALIGNMENT

This agreement with allow the Port achieve the following goals and objectives of the Port’s Strategic Plan:

Strategic Priority Area

Goal Objective How this Project Implements and When

Sustainable Economic and Business Development

Goal D: Improve the Port’s Financial Position

1. Minimize expenditures and focus on core services

Renewal of Microsoft licensing will cost less than switching to less mainstream alternatives.

Communications and Information

Goal L: Provide Timely and Relevant Information toSupport Critical Analysis and Decision-Making

3. Modernize and update Port technology systems and tools to enhance organizational productivity, efficiency and data analysis capabilities.

This Board action will result in up to date software that will keep the Port running.


10


302206 4

BUDGET & FINANCIAL IMPACT

The Microsoft licensing renewals are paid annually. This fiscal year’s payment of $190,000 was included in the FY 2013-14 Budget. Port staff will budget for the annual licensing renewal costs in future operating budgets.

STAFFING IMPACT

There will be no change in Port staffing.

SUSTAINABILITY

To the extent possible, procurement staff will endeavor to meet the Port’s procurement needs by placing orders or entering into agreements with vendors who have a sustainability policy and follow green practices in the conduct of their business practices.

ENVIRONMENTAL

The renewal of Microsoft licensing was reviewed in accordance with the requirements of the California Environmental Quality Act (CEQA), and the Port CEQA Guidelines. The general rule in Section 15061(b)(3) of the CEQA Guidelines states that CEQA applies only to activities that have a potential for causing a significant effect on the environment. It can be seen with certainty that there is no possibility that the reseller will perform work resulting in a physical change in the environment, and therefore this action is not subject to CEQA and no further environmental review is required.

MARITIME AND AVIATION PROJECT LABOR AGREEMENT (MAPLA)

The work performed under the proposed agreement is not within the scope of the Port of Oakland Maritime and Aviation Project Labor Agreement (MAPLA) and the provisions of the MAPLA do not apply to this work.

OWNER CONTROLLED INSURANCE PROGRAM (OCIP)

The Owner Controlled Insurance Program (OCIP) does not apply as the renewal of Microsoft licensing is not a capital improvement construction project.

GENERAL PLAN

This action does not change the use of any existing facility or create new facilities, and therefore does not require a General Plan conformity determination pursuant to Section 727 of the City of Oakland Charter.


11


302206 5

LIVING WAGE

Living wage requirements, in accordance with the Port’s Rules and Regulations for the Implementation and Enforcement of the Port of Oakland Living Wage Requirements (the “Living Wage Regulations”), do not apply to this agreement as the service providersdoes not employ 21 or more employees working on Port-related work. However, service providers will be required to certify that should living wage obligations become applicable, service providers shall comply with the Living Wage Regulations.

OPTIONS

1. Find and determine that it is in the best interest of the Port to use a Cooperative Purchasing Agreement as authorized in Port Ordinance 1606, Section 8 and authorize the Executive Director to enter into an agreement with a Microsoft resellerauthorized under the County of Riverside Microsoft Licensing Agreement and chosen via an informal bidding process to renew Microsoft licensing for five years in an amount not to exceed $1,039,500 ($945,000 with a 10% contingency) paid in annual installments. This is the recommended option.

2. Do not authorize an agreement to renew Microsoft licensing. This option would leave the Port without email and calendaring capabilities. Additionally, the Port would no longer be allowed to create new servers, and technical support calls to Microsoft will no longer be answered.

RECOMMENDATION

It is recommended that the Board of Port Commissioners Find and determine that it is in the best interest of the Port to use a Cooperative Purchasing Agreement as authorized in Port Ordinance 1606, Section 8, and authorize the Executive Director to enter into an agreement with a Microsoft reseller authorized under the County of Riverside Microsoft Licensing Agreement and chosen via an informal bidding process to renew Microsoft licensing for five years in an amount not to exceed $1,039,500 ($945,000 with a 10% contingency) paid in annual installments.


12

BOARD OF PORT COMMISSIONERSCITY OF OAKLAND

I May8, 2014I Item No.:

MCR/jev

the Agenda Report Itemagenda materials, has

ovided ooportunities for

WHEREAS, that in acting ts matter, the Board has exercised itsindependent judgment ba substairevidence in the record and adopts andreLIes upon the facts,alysis, findings set forth in the Agenda Reportand in related agen nd in rnony received; and

NOW, RESOLVER FOLLOWS:

contained in the Agenda Reportand testimony rec Board hdTy finds and determines that it is in thebest interest of thto purchase the Microsoft Software Licensing through aCooperativ t.

authorizes the Executive Director to negotiate andcrosoft reseller authorized under the County of

jreernent through an informal bidding process to renewfive (5) years in an amount not to exceed $1,039,500

ingency), paid in annual installments, as further described

RESOLUTION FINDING AND DETERMININGINTEREST OF THE PORT TO CONTRACT FORSOFTW1RE LICENSING THROUGH AAGREEMENT AND AUTHORIZING EXECUT]BASED ON RECEIPT OF INFORNL BIDS$1,039,500

WHEREAS, the BoardNo. 2.1 dated May 8, 2014 (“received the expert testimony ofand taken public comment; and

302834


13

SECTION 3

upon

This resolution is not evidence of oes not create orconstitute (a> a contract, or the grant of any right, lement or propertyinterest, or (b) any obligation or liability on the part of Board or any officeror employee of the Board, Unless and until a separateen agreement is dulyexecuted on behalf oi- the Board as authorized by thtion, is signed asapproved as to form and legality by the Port .ttorncontracting party, there shall be no valid or effecti

SECTION 4. This resolution shaiadoption by the Board.

Jivered to other

302634


14


15


5/8/14I ItemNo 22 /JS/lhrj

RESOLUTION APPROVINGREQUESTED BY GARY LIUPRODUCTS.

RESOLVED, that in reliance representations andcertifications set forth upon and sutywith an application byGARY LIU, dba MDI FOREST PRODUCTS, (“tenafor a building permit toperform certain work at 14Maritime (Oakland Army Base),Oakland, California (“Prei4Ihthe Boar Port Commissioners(“Board”) hereby approves to saWrepresentations andcertifications at an esi •,J00, said work andapplicable conditions of Pore-“) approval includingthe following:

scale for use by the tenant.

that the Board hereby finds and determines thatin the requirements of the California EnvironmentalQual, , and the Port CEQA Guidelines, this project iscover 02 Oakland Army Base (GAB) Area Redevelopment PlanEnvir ct Report (EIR) and the 2012 GAB Project InitialStudy/Addei (IS/Addendum), which were previously considered by theBoard. Those documents analyzed projects to be developed by the Porton its portion of the former GAB; and be it

1) Install

2) Insi

3) C

t the four corners of theand exit access routes;

all off!e terms and conditions set forthin Gar’s and MDI Forest Products’ agreements with

all other documents regulating use of the

302840


16

FURTHER RESOLVED, that (a) neither this resolution nor theBoard’s approval of said work (i) is a waiver by the Board of any Portright or remedy with respect to applicant under any agreement betweenthe Port and the applicant or with respect to any obligation ofapplicant, or (ii) releases applicant from any obligan with respectto said work or with respect to any agreement the Port andapplicant and (b) this resolution is not evider6f and does notcreate or constitute (i) a contract, or the gran any right (otherthan to perform the work subject to th isions of thisresolution), entitlement or property interes ny obligationor liability on the part of the Board or loyee ofthe Board.

FURTIR RESOLVED,immediately upon adoption by the Board.

302840


17


18

5/8)14Item No.: 2.3JS/Ihr


RESOLUTION APPROVINGREQUESTED BY DOLLARGROUP.

RESOLVED, that in reliance representations andcertifications set forth upon and su with an application byDOLLAR THRIFTY AUTOMOTIVE GROUP, (“tenan or a building permit toperform certain work at 700arhart Road ) , Oakland, California(“Premises”), the Board Commiss s (“Board”) herebyapproves same subject to s .ons a ertifications at anestimated cost of $43,000, s .e conditions of Portof Oakland (“Port”) approval

1) Relocate thin assigned parking area,includinc and existing improvements,prepar foundation and utilities, andinsta and canopy including utilityCOfl]

2) CompL all of tTTh terms and conditions set forthin Dollifty Automotive Group’s agreements with the

other documents regulating use of the

that the Board hereby finds and determines thatcategorically exempt from requirements of thenta1 Quality Act (CEQA) pursuant to Section 15302

cernent or Reconstruction of existing structures andthe new structure will be located on the same site as

the replaced and will have substantially the same purposeand capacity as the structure replaced, included but not limited to

wing:

t

Class

302844


19

replacement of a commercial structure with a new structure ofsubstantially the same size, purpose and capacity; and be it

FURTHER RESOLVED, that (a) neither this resolution nor theBoard’s approval of said work (i) is a waiver by the Board of any Portright or remedy with respect to applicant under any eement betweenthe Port and the applicant or with respect to obligation ofapplicant, or (ii) releases applicant from any oblIon with respectto said work or with respect to any agreement n the Port andapplicant and (b) this resolution is not ev4 and does notcreate or constitute (i) a contract, or the right (otherthan to perform the work subject to of thisresolution), entitlement or property inte ligationor liability on the part of the Board yee ofthe Board

FURTHER RESOLVED, that thisimmediately upon adoption by the

become effective

302844


20


21

5/8/14Item No.: 2.4JS/Ihr


RESOLUTION APPROVINGREQUESTED BY

RESOLVED, that in reliancE representations andcertifications set forth upon and th an application bySHELL PIPELINE COMP2NY, L.P., (“te] a building permit toperform certain work at 1 Airport Driveh Field Perimeter Dike,Oakland, California (“PrerniA”), the Bopf Port Commissioners(“Board”) hereby approves ect to representations andcertifications at an est: f $2OO, said work andapplicable conditions of Po t”) approval includingthe following:

:imately 1100 lineal feet ofthe perimeter dike that is in‘s planned Perimeter Dike

that the Board hereby finds and determines that:utorily Exempt from CEQA per Section 15284(a); and

that (a) neither this resolution nor theBoard’s of said work (i) is a waiver by the Board of any Portright or r Ly with respect to applicant under any agreement betweenthe Port and the applicant or with respect to any obligation ofapplicant, or (ii) releases applicant from any obligation with respect

1) Partialexisti!confi

2) terms and conditions set forthline Company, L.P.’s agreements with the

.1 other documents regulating use of the

be

302845


22

to said work or with respect to any agreement between the Port andapplicant and (b) this resolution is not evidence of and does notcreate or constitute (i) a contract, or the grant of any right (otherthan to perform the work subject to the provisions of thisresolution), entitlement or property interest, or (ii) any obligationor liability on the part of the Board or any officeor employee ofthe Board.

FURTHER RESOLVED,immediately upon adoption by the Board.

302845


23

302489

PORT ORDINANCE NO. 4287

ORDINANCE APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A GRANT OF EASEMENT TO EAST BAY MUNICIPAL UTILITY (“EBMUD”) TO RELOCATE AN EXISTING WATER LINE ALONG 14TH STREET, OAKLAND, CA.

WHEREAS, the Board of Port Commissioners of the City of Oakland (“Board”) has reviewed and evaluated the Agenda Report for Agenda Item 2.1, dated April 24, 2014 (the “Agenda Report”) and related agenda materials, has received the expert testimony of Port of Oakland (“Port”) staff, and has provided opportunities for and taken public comment; and

WHEREAS, in order to complete the Port’s Outer Harbor Intermodal Terminal (“OHIT”) Rail Yard Phase 1 project at the former Oakland Army Base (“OAB”), an existing EBMUD water line needs to be relocated and installed at a depth that will not interfere with construction and operation of the new rail yard; and

WHEREAS, the Port and EBMUD have identified an alignment fora new, relocated water line (as generally shown in the schematic drawing attached hereto as Exhibit A and hereafter referred to as the “New Easement Area”) that will minimize the impact to the Port’s rail yard project; and

WHEREAS, Port staff seeks authorization to grant EBMUD an easement in such New Easement Area (i) to allow EBMUD to relocate, install, operate, repair, replace, and construct a new water line, and (ii) conditioned upon EBMUD executing and delivering to the Port a quitclaim deed of their existing property rights to the area where EBMUD’s existing water line is currently located; now, therefore

BE IT ORDAINED by the Board of Port Commissioners of the City of Oakland as follows:

Section 1. In acting upon this matter, the Board has exercised its independent judgment based on substantial evidence in the record and adopts and relies upon the facts, data, analysis, and findings set forth in the Agenda Report and in related agenda materials and in testimony received.

Section 2. The Board hereby finds and determines that it isin the best interest of the Port to approve and authorize the Executive Director of the Port or his designee to execute an easementto EBMUD to relocate an existing water line along 14th, Street, Oakland, CA, install, operate, repair, replace, and construct a new water line within the New Easement Area, all in a form approved by the Port Attorney and consistent with the purposes set forth in the Agenda Report and in this Ordinance.


24

302489

Section 3. The Board hereby finds and determines that theproposal to grant an easement and to EBMUD to relocate an existing water line as described in this Agenda Report was previously reviewed in accordance with the requirements of the California Environmental Quality Act (“CEQA”)and the Port CEQA Guidelines as follows:

a. In July 2002, the City of Oakland, acting by and through its City Council (“City”), as the lead agency under CEQA, certified an Environmental Impact Report (“EIR”) for reuse of the OAB. On September 17, 2001, the Board, acting on behalf of the Port as a responsible agency under CEQA, adopted findings and a mitigation program in reliance on the City’s EIR (Resolution No. 02317). In June 2012, the Board considered the 2012 OAB Project Initial Study/Addendum (“2012 Addendum”) and adopted mitigation measures applicable to the Port from the City’s OAB Standard Conditions of Approval/Mitigation Monitoring and Reporting Program (“SCA/MMRP”)with Resolution No. 12-76.

b. The OAB EIR and the 2012 Addendum described projects to be developed by the Port and City on and immediately adjacent to the former OAB, and the possible need for utility relocations during development as described in the Agenda Report. Thus, no further CEQA review is required to take the actions recommended in the Agenda Report.

c. EBMUD and its contractors will be required to comply with applicable mitigation measures and standard conditions of approval in the adopted SCA/MMRP, with is available on-line at:

www2.oaklandnet.com/Government/o/PBN/OurOrganization/PlanningZoning/s/ApplicantionandZoningInformation/OAK042281.

d. All projects on the Economic Development Conveyance property at the former OAB must be completed in compliance with the September 27, 2002 Remedial Action Plan (“RAP”) and Risk Management Plan (“RMP”, which is Appendix E to the RAP) prepared for the California Department of Toxic Substances Control and the Oakland Base Reuse Authority.

Section 4. The Board hereby approves and authorizes the Executive Director to negotiate and execute an easement to relocate an existing water line along 14th, Street, Oakland, CA, install, operate, repair, replace, and construct a new water line within the New Easement Area, all in a form approved by the Port Attorney and consistent with the purposes set forth in the Agenda Report and in this Ordinance in partial consideration for EBMUD executing and delivering to the Port a quitclaim deed of their existing property rights to the area where EBMUD’s existing water line is currently located.

Section 5. This ordinance approves and authorizes the execution of an easement in accordance with the terms of this ordinance. Unless and until a separate written instrument is duly executed on behalf of the Board as authorized by this ordinance, is


25

302489

signed and approved as to form and legality by the Port Attorney, and is recorded on title, there shall be no valid or effective easement.

The Board of Port Commissioners, Oakland, California, April 24, 2014. Passed to print for one day by the following vote: Ayes: Commissioners Colbruno, Hamlin, Head, Parker, Uno, Yee and President Butner – 7. Noes: 0.

John T. BettertonSecretary of the Board


26

302467


AN ORDINANCE AMENDING PORT ORDINANCE NO. 3634 RELATING TO FINGERPRINTING FEES AT METROPOLITAN OAKLAND INTERNATIONAL AIRPORT.

WHEREAS, the Board of Port Commissioners (“Board”) has reviewed and evaluated the Agenda Report Item 2.2, dated April 24, 2014(“Agenda Report”) and related agenda materials, has received the expert testimony of Port of Oakland (“Port”) staff, and has provided opportunities for and taken public comment;

WHEREAS, that in acting upon this matter, the Board has exercised its independent judgment based on substantial evidence in the record and adopts and relies upon the facts, data, analysis, and findings set forth in the Agenda Report, and in related agenda materials and in testimony received; now, therefore


Section 1. Section 10.5 of Port Ordinance No. 3634 is hereby amended and restated to read as follows:

“Section 10.5: The following fees are hereby established for Airport Security Identification Display Area (SIDA) badges issued by the Port and fingerprinting/criminal history records check:

New SIDA Badge and renewal fee $ 25.00First lost/unaccounted for badge $ 50.00Second lost/unaccounted for badge $ 75.00Third lost/unaccounted for badge $100.00Fourth lost/unaccounted for badge Permanent RevocationFailure to surrender and returnSIDA badge upon termination $ 50.00Fingerprinting/Criminal HistoryRecords Check $ 50.00

Missing Badge Price: A price of $25.00 is established for each missing badge to partially defray costs to the Airport for guarding against the misuse of a missing badge. This price is in addition to other normal badge prices.

Airport Vehicle Parking Ramp Access Permits: The following prices are hereby established for Port-issued vehicle permits at the Airport:


27

302467

Type of Permit Fee

Reserved Area Vehicle Parking $5.00Ramp Area Vehicle Access 5.00”

Section 2. The Board hereby ratifies the previous collection of the fingerprinting/criminal history records check fee.

Section 3. The Board hereby finds and determines that the action is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(a) because the action is not a “Project” under CEQA.

Section 4. This ordinance shall be effective immediately upon adoption by the Board.




28

302469


ORDINANCE APPROVING AND AUTHORIZING A SPACE/USE PERMIT WITH SWISSPORT FUELING, INC., TO CONTINUE PROVIDING INTO-PLANE FUELING SERVICES AT OAKLAND INTERNATIONAL AIRPORT.

WHEREAS, the Board of Port Commissioners (“Board”) has reviewed and evaluated the Agenda Report Item 2.3, dated April 24, 2014 (“Agenda Report”) and related agenda materials, has received the expert testimony of Port of Oakland (“Port”) staff, and has provided opportunities for and taken public comment,



Section 1. The Board hereby approves a Space/Use Permit(“Agreement”) between the CITY OF OAKLAND, a municipal corporation, acting by and through the Board, and SWISSPORT FUELING, INC.(“Swissport”), to continue providing into-plane fueling services to member airlines of Oakland Fueling Facilities Corporation (“OFFC”) at Oakland International Airport for a term of five years, subject to the right of either party to terminate on 30 days written notice, for consideration of 10% of gross revenues, subject to a minimum of $250 per month, on the other terms and conditions as set forth in the Agenda Report, and upon such standard terms and conditions as specified in the Agreement and approved by the Executive Director.

Section 2. The Executive Director is hereby authorized to execute said Agreement subject to the Port Attorney’s review and approval as to form and legality.

Section 3. The Board hereby finds and determines that this project has been determined to be categorically exempt from requirements of the California Environmental Quality Act Guidelines Section 15301 (Existing Facilities).

Section 4. This ordinance is not evidence of and does not create or constitute (a) a contract, agreement, lease or the grant of any right, entitlement or property interest, or (b) any obligation or liability on the part of the Board or any officer or employee of the Board. This ordinance approves and authorizes the execution of said Agreement in accordance with the terms of this


29

302469

ordinance. Unless and until a separate written Agreement is duly executed on behalf of the Board as authorized by this ordinance, is signed and approved as to form and legality by the Port Attorney, and is delivered to Swissport, there shall be no valid or effective Agreement.




30

302475


ORDINANCE APPROVING AN AIRLINE OPERATING AGREEMENT WITH NORWEGIAN AIR SHUTTLE ASA.

WHEREAS, the Board of Port Commissioners (“Board”) has reviewed and evaluated the Agenda Report Item 6.2, dated April 24, 2014 (“Agenda Report”) and related agenda materials, has received the expert testimony of Port of Oakland (“Port”) staff, and has provided opportunities for and taken public comment; and



Section 1. The Board hereby approves the terms and conditions of the Port’s standard form Airline Operating Agreement(“AOA”) with the NORWEGIAN AIR SHUTTLE ASA (“Norwegian”) for a term expiring on September 30, 2016, at the rate and terms and conditions set forth in the Agenda Report, and upon such standard terms and conditions as specified in the AOA, subject to the Port Attorney’s review and approval as to form and legality.

Section 2. The Board hereby authorizes the Executive Director to execute, subject to the Port Attorney’s approval as to form and legality, the AOA with Norwegian.

Section 3. The Board hereby finds and determines that this agreement is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301, Existing Facilities. CEQA does not apply to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination.

Section 4. This ordinance is not evidence of and does not create or constitute (a) a contract or lease, entitlement or property interest, or (b) any obligation or liability on the part of the Board or any officer or employee of the Board. Unless and until separate written agreement(s) are duly executed on behalf of


31

302475

the Board as authorized by this ordinance, is signed and approved as to form and legality by the Port Attorney, and is delivered to the other contracting party, there shall be no valid or effective agreement(s).

The Board of Port Commissioners, Oakland, California, April 24, 2014. Passed to print for one day by the following vote: Ayes: CommissionersColbruno, Hamlin, Head, Parker, Uno, Yee and President Butner – 7. Noes: 0.



32


271764 v14

INFORMATIONAL REPORT (This item is for information only and no action is

requested or required of the Board of Port Commissioners.)

TITLE: Quarterly Report of Construction Change Orders for 3rd Quarter FY 13/14

BOARD MEETING DATE: May 8, 2014

SUBMITTED BY: Chris Chan, Director of Engineering

APPROVED BY: J. Christopher Lytle, Executive Director

SUMMARY Port Ordinance No. 1606 requires that Port staff submit quarterly reports to the Board of Port Commissioners summarizing change orders issued on Port public works contracts. Attached is the summary change order report for the 3rd quarter of Fiscal Year 2013/2014 (Attachment A). Also attached, for your reference, is a list of change order types with an explanation of each (Attachment B).


33

Quarterly Report of Construction Change Orders for 3rd Quarter FY 13/14 ATTACHMENT A

QUARTERLY REPORT

OF

CONSTRUCTION CHANGE ORDERS

FOR

3rd QUARTER OF FISCAL YEAR 2014

During the third quarter of FY 2014 there were 9 active construction contracts with an

aggregate value of $94,060,606.00. A total of 3 contract change orders, totaling $60,121.19

were issued on 1 of these construction contracts. This amounts to 0.06% of the $94,060,606.00

aggregate total contract value, or 0.18% of the $32,868,482.00 value of that 1 contract.

Following is a table listing the various change order types, the total dollar amount issued for

each type, and the percentages of the total value of all contracts and the 1 that had change

orders issued against them.

Change Order Type

Total

% of All contracts

% of 1 Contract

D Design Modifications 7,911.63 0.01% 0.02%

R Regulatory 52,209.56 0.05% 0.16%

Grand Total of all Change Orders $60,121.19 0.06% 0.18%


34

Quarterly Report of Construction Change Orders for 3rd Quarter FY 13/14

ATTACHMENT B

ENGINEERING DIVISION Coding of Change Orders by Type

A Administrative – Administrative changes such as adding the OCIP Program to the contract,

delaying an NTP, non-compensable time extension, or suspending /terminating the work. B Bills to Others – Work done for and at the expense of others, the cost of which will be billed

directly to the responsible party. An example is repair of damage caused by a third party. C Claims Settlement – Settlement of contractor claims typically relating to things such as

overhead or cost related to project time delays. If claims are filed with respect to whether or not an item or work is an extra and an agreement is reached that it is, then that item would be considered as one of the other types of Change Orders.

D Design Modifications – Modifications to the plans and specifications to fit actual field

conditions or to make the plans and project specifications conform in the case of conflicting requirements. This will include changes to meet various building code requirements.

E Project Enhancements – Enhancements to projects typically at the request of the Revenue

Division to meet the needs of the tenants or for other related business reasons. Examples include additional signage added to a signage contract, providing a more costly piece of equipment, adding more bookcases, or delaying/accelerating a project.

F Field Changes – Modifications to the contract due to out-of-sequence work, phasing

changes, additional or modified barricaded/enclosures/equipment, temporary striping, temporary roads, or additional efforts to avoid potential delays.

O Omissions – Errors or omissions to the plans or specifications. An example is missing the

need to relocate utilities that are in the way of new columns when the existing utilities can be seen and addressed in the design. Care needs to be taken when deciding between Type D and Type O Change Orders.

P Project Sponsor Initiated Changes – Changes/modifications to projects resulting in

changes in construction operations to accommodate tenant/customer requirements during the course of the project. This type of Change Order generally would not alter the final physical production outcome of the project as required by the plans and specifications.

R Regulatory/Outside Agency Changes – Changes/additions to projects due to changed

regulatory agency permit requirement such as new Storm Water Discharge BMPs, additional winterization measures, etc. This type of Change Order would also include extra work performed to assist outside agencies, such as utility companies, railroads, airlines, etc., in completing their work on Port projects.

U Unforeseen Conditions – Covers things such as unsuitable subgrade soils or unknown

utility lines, or hidden conditions such as unknown asbestos encountered under floors or in walls when doing remodel or demolition work.

V Value Engineering – Changes to the contract initiated by the owner to bring the overall

project cost within budget. This also includes changes to contractor-initiated Requests for Substitution.

X Unrelated Work – Work not related to the project being built under the original contract, and

would normally be done under separate contract. The purpose is to expedite the new work.


35

MAJOR PROJECTS

This segment of the meeting is reserved for action and discussions regarding the status of Major Projects and issues of special importance.

MAJOR PROJECTS Tab 3

36

BUDGET & FINANCE

This segment of the meeting is reserved for action or discussion regarding the status of Budget and Finance issues.

BUDGET & FINANCE Tab 4

37

STRATEGY & POLICY

This segment of the meeting is reserved for action or discussion on Strategy and Policy Issues.

STRATEGY & POLICY Tab 5

38


302676 1

AGENDA REPORT

TITLE: Resolution Designating An Audit Standing Committee of the Board

AMOUNT: $0

PARTIES INVOLVED:

Corporate Name/Principal LocationN/A

TYPE OF ACTION: Resolution

SUBMITTED BY: Sara Lee, Chief Financial OfficerDanny Wan, Port Attorney

APPROVED BY: Chris Lytle, Executive Director

FACTUAL BACKGROUND

The Port of Oakland, as a public agency, generally follows the recommended finance, audit, budget and financial reporting best practices of the Government Finance Officers Association (GFOA). The Association’s published best practice (BEST PRACTICE Audit Committees (1997, 2002, 2006, and 2008) (CAAFR)) recommends that each public agency create a standing audit committee. The Audit Committee’s role is to provide independent review and oversight of an agency’s financial reporting process, internal controls and independent auditors.

ANALYSIS

Under the Board of Port Commissioner’s (“Board”) By Laws and Administrative Rules, the Board may designate a standing committee of the Board that advises the whole Board on a defined scope of subject matter.

The Board currently has no standing committee because it has deemed it appropriate to conduct all Board business as a whole, rather by committees. From time-to-time, the President of the Board has designated temporary ad hoc committees to investigate study and report to the whole Board on very specific issues of policy concern. Such ad hoc committees are time-limited, have no delegated legislative authority and fall under an exception to the Brown Act and the Port of Oakland Sunshine Ordinance.

However, staff recommends that the Board create a standing Audit Committee because of the need for ongoing independent oversight of the Port’s financial reporting, internal controls and independent auditors. Members of the Audit Committee need to either have knowledge of or to become familiar with the Port’s financial reporting systems, and audit procedures. The Audit Committee need to be ongoing in order to provide members with

STRATEGY & POLICY Tab 5.1

39


302676 2

continuity in their ability to learn the financial control and audit systems and so that they many provide meaningful input and oversight over time. Maintaining a standing Audit Committee follows the best practices recommendation of the GFOA.

The Audit Committee would be a “legislative body” for the purposes of the Brown Act and the Port of Oakland Sunshine Ordinance. Therefore, once appointed, the Audit Committee will need to establish a regular meeting time, and follow the notice and meeting requirements of these laws. Importantly, no member of this three-member committee may discuss with another member of the committee any matter within the scope of the subject matter jurisdiction of the committee outside a properly noticed meeting. Staff recommends that the committee would meet on a regular quarterly basis.

The Audit Committee would consist of three members of the Board appointed by the President of the Board. Each member should possess or obtain a basic understanding of government financial reporting and auditing. Ideally, at least one committee member should, through both education and experience, and in a manner specifically relevant to the government sector, possess 1) an understanding of generally accepted accounting principles and financial statements; 2) experience in preparing or auditing financialstatements of comparable entities; 3) experience in applying such principles in connection with the accounting for estimates, accruals, and reserves; 4) experience with internal accounting controls; and 5) an understanding of Audit Committee functions (“Expertise Areas”). Following the GFOA recommendations, staff recommends that the Audit Committee should have the following responsibilities and subject matter jurisdiction:

∑ Recommend to the Board the appointment, compensation, retention of any independent accountants engaged for the purpose of preparing or issuing an independent audit report or performing other independent audit, review, or attest services;

∑ Directly oversee all accountants thus engaged and such accountants shall report directly to the Audit Committee;

∑ Periodically review the scope of the committee’s responsibilities, as well as its structure, processes, and membership, and report its findings and recommendation to the Board, no less than once every five years;

∑ If the Committee deems it necessary to perform its functions, recommend to the Board the retention of a financial expert to advise the committee on Expertise Areas;

∑ Provide independent review and oversight of the Port’s financial reporting processes, internal controls and independent auditors;

∑ Review with the Port Auditor his or her annual internal audit work plan and have access to the Port Auditor’s reports;

∑ Present annually to the full Board a written report of how it has discharged its duties and met its responsibilities.

∑ Recommend to the Board the adoption of or changes to procedures for the receipt, retention, and treatment of complaints regarding accounting, internal accounting controls, or auditing matters;

∑ Monitor controls performed directly by senior management, as well as controls designed to prevent or detect senior-management override of other controls.


40


302676 3

BUDGET & FINANCIAL IMPACT

The formation of a standing committee would require extra staff time to manage agendas, prepare staff reports and staff committee meetings. There would also be extra costs of noticing the meetings and publications pursuant to law.

STAFFING IMPACT

See above

SUSTAINABILITY

Proper and independent oversight of the Port’s financial control and auditing procedures is essential to sustaining the financial viability of the Port and to maintaining public confidence.

RECOMMENDATION

Staff recommends the designation by resolution of an Audit Committee of three Board members, with specific and limited responsibilities and subject-matter jurisdiction (as specified above), that is subject to the Brown Act and Port of Oakland Sunshine Ordinance and that meets regularly on a quarterly basis.


41

BOARD OF PORT COMMiSSIONERSCITY OF OAKLAND

1 5/8/14 Ikem5l — ICT:mj j

RESOLUTION DESIGNATING A STANDINGTHE BOARD OF PORT COMMISSIONERS.

UEREAS, the Board of Port Board”) has reviewedand evaluated the Agenda Report Ii May 8, 2014, (“AgendaReport’1) and related materials, has rthe expert testimony ofPort of Oakland (“Port”) staff, and has ed opportunities for andtaken public comment; now, tefore, he i

RESOLVED, that the te designation of astanding Audit Committee c e Board members, withspecific and limited respons, ect-matter jurisdiction(as further described be1ow)pW’hat will meet regularly on aquarterly basis; at

t, compensation, retentionof any nt accountants engaged for the purpose ofpreparing suing an independent audit report or performing

audit, review, or attest services;

1 accountants thus engaged and suchrt directly to the Audit Committee;

review the scope of the committee’sa, as well as its structure, processes, and

md report its findings and recommendation to thess than once every five years;

OF

FURTHERfollowing r’

Rec

lit Committee shall have thematter jurisdiction:

302853


42

If the Audit Committee deems it necessar’functions, recommend to the Board the retentexpert to advise the committee on Expertise

Review with the Port Auditor his ner annual iwork plan and have access to the Auditor’s report

Present annually to the full B writreport of how it has

discharged its duties and met _spolities;

Recommend to the Board the adopt r changes to proceduresfor the receipt, retention, and trea of complaints regardingaccounting, interna]. nting cont or auditing matters;

.or management, as welltect senior-management

Provide independent review and oversightreporting processes, internal controls

perform itsa financial

financialauditors;

1 audit

and

Monitor controls perfo.as controls designedoverride of other control

F’EJRTHERherein, thesubstantialfacts, datain related

t inting upon the matters containedrciseds independent judgment based on

recoiand adopts and relies upon the

et forth in the Agenda Report and

received.

3028 3


43

REMAINING ACTION ITEMS

Remaining Action Items are items not previously addressed in this Agenda that may require staff presentation and/or discussion and information prior to action by the Board.

REMAINING ACTION ITEMS Tab 6

44

UPDATES & ANNOUNCEMENTS

The President, Members of the Board and the Executive Director will report on noteworthy events occurring since the last Board Meeting.

UPDATES & ANNOUNCEMENTS Tab 7

45

SCHEDULING

This segment of the meeting is reserved for scheduling items for future Agendas and/or scheduling Special Meetings.

SCHEDULING Tab 8

46