AgdaPkt 2008-02-11 Clsd and Reg - Laserfiche WebLink

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7C Page 11 The Charter provides that the Port Commission has oversight of the Port through its exclusive control and supervision. The purpose of these Charter provisions pertaining to the Port are to provide business independence for the Port to aJIow transactions (leases, contracts, etc.) to be handled in the most expeditious and beneficial manner. This is very similar to other municipal appointed port commissions, such as the Ports of Oakland and Long Beach, whose charters provide them great latitude to conduct their business transactions. 20. Are the financial decisions made by the port now of much higher value or of more risk to the city? A: The decisions made by the Commission regarding the use of its land, facility leases, capital investment in infrastructure and facilities, financing, budgets, and other business matters aU have financial impacts on the Port. There is not a direct risk to the City with any of these business decisions. The Port's physical growth is constrained by its existing property boundaries and the prospect for expansion is limited. However, the Port still has some capacity available to handle additional tonnage as the markets for construction materials and recycling grow. As tonnage increase the number of ships and trucks needed to move the cargo increases as well, and while issues such as air pollution and truck traffic arise as a result of growth, the Port is diligent in evaluating impacts and possible mitigations. The costlbenefit of any mitigation required in order to meet environmental standards is carefully weighed prior to the Commission's decision on whether to proceed. These decisions and the resultant growth in revenues, profitability, and financial obligations do not necessarily translate to greater risk to the City. Every precaution is taken to limit or eliminate the City's exposure, ifany, as a result of the Port's actions. With regard to incurring debt by issuing bonds, Section 50b of the Charter provides that the Port Commission, with approval ofthe City Council, may issue revenue bonds in the name of the Port payable exclusively from revenues of the Port. The Port has issued multiple series of revenue bonds throughout its history. Currently, the only Port bond issue outstanding is the 1999 Series Revenue Bonds. As per the master indenture, the liability for repayment of the bonds is limited to the Port's net revenue. The language specifically protects the City from liability for repayment in the event of a default by the Port. 21. Are potential liabilities or risks that of the city or the port? A: The Charter provides that the Port may sue and defend in the name ofthe City all actions and proceedings that involve matters within the jurisdiction of the Port. In general, the Port has always maintained that its liability should not be imposed on the City. The imposition of financial liability or risk of the Port to the City would most likely not be an issue if the liability can be satisfied by the revenues and assets of the Port. POI! of Redwood City Responses to City Charter Questions 02105108 Page 10 of 13