CC Min 1993-09-20 Stdy - Laserfiche WebLink

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C. ITEMS OF INTEREST TO ADDRESS 1) Commissioner Bennett presented a synopsis of the June 30, 1993 Financial Statements, projected Budget AnalysislCash Flows, Capital Improvement Program, Port reserves, cash reserves and retained earnings (on file in the City Clerk Department.) Discussion ensued regarding returns on investment; the appropriate use of Port funds in the short term and long term; what constitutes prudent business decisions; and, use of reserves for subvention. Councilman Claire asked the Port Commissioners to provide a more detailed report and explanation of revenue decreases and operational costs' increases listed in the Financial Statements. MEMO 9/21/93 2) Commissioner Bennett presented the Port's first written Five-year Capital Improvement Plan and discussed expansion plans. . Councilman Claire led the discussion regarding if and when capital improvements were needed, and the impact of bonded indebtedness on Port profits, surpluses and subventions to the City. In response to Council questions, Commissioner Dodge advised that bulk cargo was the appropriate niche for the Port of Redwood City, along with a mixed use approach for other Port facilities, and the proposed CIP reflected that goal. 3) Commissioner Dodge described the Port's contributions to the City General Fund and stated that the Port of Redwood City is one of only three ports in the entire country that give subventions back to the City. Commissioner Dodge stated the Port needed more land to increase dock days and increase revenues, and advised that when the bonds were paid off the subventions to the City would increase dramatically. Over the past seven years the City's general fund has received nearly $1 million. Councilman Claire asked for a more detailed report on justification of the proposed $18.6 million worth of capital improvement projects and bonded indebtedness, and the impact on subventions to the City. MEMO 9/21/93 In response to Council questions, Port Commissioners described their vision for the Port including the flexibility to plan for shrinking and growing markets such as decreased construction materials to increased recycling materials; no plans for containerization; increased handling of bulk commodities and maximizing use of all I Port facilities on long and short term bases; profitability; and a secure asset for the City of Redwood City. Study Session Minutes I MINUTE BOOK NO. 51 September 20, 1993 -- Page No. 532 Page 3 - - -- -------- - - ------ --- -- --,------u-- u- -_.. - -------- - -- --------