Exhibit 1
Port Tenant Information
1 Port Leases – Matrix below shows current Port tenant information as of June 30, 2023 Port Tenant Map Key and Information
Map
Number
Location Tenant Rent Council Approval Lease
Expiration
Business
License
Business License
Expiration Date Insurance
1 PPMT Auto Warehouse Company
(AWC)
Tracked as
revenue
12/22/2020 for
second amendment 05/19/2026 4000-7579 12/31/2023 08/01/2024 2 PPMT Foss Maritime (finger only) $22,501.29 07/10/2018 02/28/2028 4000-0417 12/31/2023 03/01/2024 3 PPMT Marine Spill Response Corp
(MSRC) $31,905.54 01/01/1993 06/30/2043 4000-5122 12/31/2023 07/01/2024 4 PPMT Dutra Group $10,816
$7,030 05/23/2017 05/31/2027 4005-5569 12/31/2023 10/01/2023 5 PPMT NRC Environmental $5,300 09/12/2017 09/30/2027 4000-5875 12/31/2023 06/30/2024 6 PPMT Alcatraz Cruise $15,000 12/21/2021 10/14/2026 4006-1939 12/31/2023 12/31/2023 7 PPMT Richmond Museum Association
(Red Oak Victory) $1/year 07/10/2012 04/30/2033 4005-0628 12/31/2023 09/24/2024 8 PPMT Northland Nautical (Sea Scouts) $0 11/02/2021 03/30/2026 4006-2427 12/31/2023 05/22/2024 9 PPMT Riggers Loft $11,034.40 12/16/2014 12/31/2034 4005-2931 12/31/2023 08/05/2024 10 PPMT VACANT- General warehouse N/A
11 Terminal 2 California Oils (AAK) $40,810.54 04/05/2016 06/30/2026 4005-4966 12/31/2023 01/01/2024 12 Terminal 3 Terminal 3 Partners (IV1 1411
Harbour Way)
$38,133.33
$1.00 12/15/2020 12/15/2046 4006-3868 12/31/2023 11/01/2024 13 Terminal 4 Nematode Holdings $6,816.50 07/07/2020 06/30/2025 4005-2049 12/31/2023 06/24/2024 14 Terminal 4 Point San Pablo $786 06/15/2021 05/31/2029 4005-6357 12/31/2023 01/19/2024 15 PPMT VACANT– Basin 1 N/A
16 PPMT VACANT - Cafeteria N/A
2023 renewal notices have been mailed, due date for the 2023 business tax is July 2023.
Port Leases are posted on the City Leases webpage link here: City Leases | Richmond, CA - Official Website Exhibit 1
Port Tenant Information
2 2
3 15
4 5
6 7 & 8
9 10
Point Potrero Marine Terminal PPMT (5) (6) (7)
former Historic Shipyard 3
Zoned for: Industrial, Water-Related Zoning
16 Exhibit 1
Port Tenant Information
3 Terminal 2 and Terminal 3
Zoned for: Industrial, Water-Related Zoning
11 12
Exhibit 1
Port Tenant Information
4 13
14 Terminal 4
Zoned for: Open Space
Exhibit 1
Port Tenant Information
5 Port Request for Proposals (RFP)
Project Title Department Posted Due Date Notified Total Bidder Total Marina Bay Yacht Harbor Entrance Channel Maintenance Dredging Port 03/07/2011 3:58:06
PM 04/07/2011 1:30:00 PM 134 4
Destruction of the Terminal 3 Container Cranes Port
07/17/2014
10:50:32 AM 08/04/2014 5:00:00 PM 135 1
Support Permitting of Dredging at the Pt Potrero Marine Terminal RFP Port 02/25/2016 9:44:01
AM 03/10/2016 4:00:00 PM 707 2
Lease Of The General Warehouse At The Point Potrero Marine Terminal Port 03/28/2017
12:35:16 PM 04/28/2017 2:00:00 PM 1031 5
LEASE OF THE CAFETERIA BUILDING (BUILDING 23) AT THE POINTPOTRERO MARINE TERMINAL Port
05/15/2018 9:02:20
AM 06/28/2018 2:00:00 PM 1667 1
LEASE OF THE CAFETERIA BUILDING (BUILDING 23) AT THE POINT POTRERO MARINE TERMINAL Port
03/22/2019
10:52:08 AM 04/25/2019 2:00:00 PM 912 0
FENCE REPAIR Port
10/10/2019 4:54:29
PM 10/17/2019 5:00:00 PM 612 1
PORTABLE BUILDING DEMOLITION Port
10/25/2019 3:47:06
PM 11/05/2019 5:00:00 PM 762 1
AREA LIGHTING ASSESSMENT Port
01/03/2020
11:14:18 AM 01/16/2020 5:00:00 PM 576 1
REQUEST FOR PROPOSAL for LEAK REPAIR Port
01/03/2020 1:43:19
PM 01/16/2020 5:00:00 PM 765 1
PROFESSIONAL SERVICES AGREEMENT TO SUPPORT PERMITTING OF DREDGING AT TERMINAL 2 Port
07/01/2020
12:54:57 PM 07/16/2020 2:00:00 PM 647 2
FENCE INSTALLATION Port
07/06/2020
12:37:21 PM 07/17/2020 2:00:00 PM 529 1
PORT OF RICHMOND MASTER LEASE OF TERMINAL 3 Port
08/07/2020
12:45:51 PM 08/28/2020 4:00:00 PM 544 1
FENCE INSTALLATION AT TERMINAL 3 Port
08/13/2020 4:25:49
PM 08/26/2020 2:00:00 PM 532 1
REQUEST FOR PROPOSAL - SEA SCOUTS BERTH IMPROVEMENTS Port 10/06/2020 4:58:27
PM 10/29/2020 2:00:00 PM 474 1
RIGGERS LOFT NATURAL GAS CONVERSION Port
11/25/2020 4:11:09
PM 12/10/2020 2:00:00 PM 173 1
REQUEST FOR PROPOSAL – BATHYMETRIC SURVEY Port
01/31/2022 3:47:33
PM 02/18/2022 2:00:00 PM 245 3
REQUEST FOR PROPOSAL – ON CALL ELECTRICAL SUPPORT Port
10/11/2022 1:14:31
PM 11/18/2022 2:00:00 PM 298 1
Exhibit 1
Port Tenant Information
6 The Port of Richmond follows the City of Richmond’s procurement process, there are some cases where there is not a formal Request for Proposal (RFP). For Port Terminal 4 the City did not do an RFP process. In 2020 the City Council served as the final decision maker to approve a Terminal 4 lease with Nematode Holdings, LLC. Details of this decision are below:
Port of Richmond Terminal 4
Nematode Holdings, LLC submitted to the City an unsolicited proposal; the item went to City Council for approval on July 7th, 2020.
No RFP
Staff Report dated 6.20.20, went to 7.7.20 council meeting Lease start date 7.1.20
July 7, 2020 Council Meeting Minutes item G-3 for Terminal 4:
Meeting Minutes for item G-3 – The matter to approve a five-year Lease Agreement with Nematode Holdings, LLC. And the Port of Richmond for Terminal 4, sub-leasing for general equipment storage and other waterfront uses and caretaker services was presented by Port Director, Jim Matzorkis. The following individuals gave comments by telephone or email: Jim Hanson, Sally Tobin, and Bruce Beyaert. Discussion ensued. A motion was made by Vice Mayor Bates, seconded by Councilmember Myrick, to approve the item. A substitute motion was made by Councilmember Martinez, to approve the deal with the stipulation that it go out to bid. The motion died for lack of a second. The original motion passes by the following vote: Ayes: Councilmembers Choi, Johnson III, Myrick, Vice Mayor Bates, and Mayor Butt. Noes: Councilmember Martinez. Absent: Councilmember Willis. Abstain: None.
Link to City Council documents:
http://sireweb.ci.richmond.ca.us/sirepub/cache/2/yggs0rispcemqgvcacsg2ecl/59586111012022021543469.PDF Link to audio: https://richmond.granicus.com/MediaPlayer.php?view_id=30&clip_id=4750
Exhibit 1
Port Tenant Information
7 Sample Monthly Rent Roll – June 2023
Below is a monthly sample of the Port’s rent roll that is drafted by staff and reviewed and finalized by finance staff who collects the port rent.
Exhibit 1
Port Tenant Information
8 Tenant Subleases – The City/Port lease agreements do not require tenants to provide copies of sublease agreements. The City does provide permission for subtenants to be on premises. Below is a list of sub leasers as of June 2023.
Map
Number Tenant Location Sublease
1 Auto Warehouse Company (AWC) none
2 Foss Maritime none
3 Marine Spill Response Corp (MSRC) none
4 Dutra Group none
5 NRC Environmental none
6 Alcatraz Cruise none
7 Richmond Museum Association (Red Oak Victory) none
8 Northland Nautical (Sea Scouts) none
9 Rigger’s Loft PPMT
1. Carica Wines
2. Prima Materia
3. Wachira Wines
4. Far West Cider Co.
10 PPMT VACANT – General Warehouse
11 California Oils (AAK) Terminal 2 none
12 Terminal 3 Partners (IV1 1411 Harbour Way) Terminal 3 1. Sause Brothers 13 Nematode Holdings Terminal 4
1. Claybirds
2. Got Junk
3. Hipcamp
4. Good Hot
Various Space and short-term rentals
14 Point San Pablo Terminal 4 Various Space rentals
15 PPMT VACANT– Basin 1 N/A
16 PPMT VACANT - Cafeteria N/A
Exhibit 1
Port Tenant Information
9 Compliance with internal controls, procedures, and governmental rules and regulations and performance – Since a 2011 Port audit the Port has taken findings and improved procedures and internal controls for operations and future strategic planning. 2011 Findings and Recommendations 2022 Implementations Port Staff Assigned to Task Organizational Structure -
The City should consider establishing an autonomous port authority to manage the port in a matter to make it more competitive with other ports
The Port has joined the California Association of Port Authorities (CAPA). The purpose is to promote just and reasonable business practices among port authorities in the State of California. CAPA meets, discuss, exchange information, and agree on matters relating to their respective operations, facilities, services, and other matters, with the shared goal of fostering economic growth and providing greater economic benefits to Member Ports and the shipping public.
Lizeht Zepeda, Senior
Business Assistance Officer
Property Management -
The City should hire or engage a property manager to develop detailed plans to maximize return on investment to the City for each parcel; renew current leases having lower than market rate; develop and prioritize a list of needed facility improvements; secure financing to improve facilities; lead the global Environmental Impact Report the Port has initiated
While the Port currently does not have a property manager, Port staff has worked in collaboration with an outside contractor, CSW|ST2, to ensure that facility improvements are being done, and that appropriate budgeting for these improvements is being considered. In addition, Port staff has created a shareable document where they are tracking leases, to ensure that lease renewals are taking place in a timely and efficient manner.
Lilia Corral, Management
Analyst
Lizeht Zepeda, Senior
Business Assistance Officer
Shane Johnson, Senior
Administrative Analyst
Robert Stevens, CSW|ST2
Consultant/Engineer
Loans Payable to the City -
The City should locate and document the specific services provided to the Port that led to the $8,762,397 of loans. For any portion of the loans of which documentation is not available, the City and Port should remove the related loan amount from their accounting. the City and Port should determine the Port's ability to repay the loans. the city should recalculate the amount of interest due on the outstanding balance since its inception based on a consistent and defensible methodology.
The City Council amended the loan agreement on 10/15/13. As of 2013, the Port owed the City about $17 million. The amendment to the loan provides the following:
• Commencing in 2014, the Port will pay the City $150,000 annually until 2067.
• The Port can pre-pay the loan with no prepayment penalty. • The Port will receive an annual credit for the berthing of the Red Oak Victory at PPMT. The value for this berthing in 2014 was about $127,000. • The sale of any Port property including Terminals 1 and/ or 4 will offset and reduce the loan’s balance.
• The Port will pay zero percent interest moving forward.
As of June 2021, the Port owes the City approximately $13.1 million.
Finance Department
Exhibit 1
Port Tenant Information
10 Lay berth Vessels -
The Port should appoint a security officer, develop and security plan, and submit it to the Coast Guard for review.
Currently, all lay berths are done by Port tenants. Port tenants report the lay berths/dockage to Finance on an occurrence basis.
Finance Department
Tenant Agreements -
the Port should obtain signed copies of each active tenant agreement.
It should negotiate lease amendments to include an escalation clause as each agreement expires. The City should verify the status and purpose of the Surplus Property Authority. Port operating personnel should study the AWC leases to assure thorough understanding of their complexities and gain both City management and City attorney interpretations as necessary.
Port admin staff obtained signed copies of each active tenant agreement, uploaded them to the City of Richmond P:Drive, and notified Finance of all leases. Port admin staff has also ensured all extensions have been confirmed in a timely manner by establishing City templates to send to tenants. Most recently, Port staff met with Finance to discuss the AWC lease and amendment to ensure comprehension.
Lilia Corral, Management
Analyst
Lizeht Zepeda, Senior
Business Assistance Officer
Finance Department
Financial Reporting -
The City should determine the most appropriate format, level of detail and basis of accounting to depict Port operations. This format should be used for every Port financial report or presentation.
Port financials are reflected in the City's Annual Comprehensive Financial Report (ACFR)
Finance Department
Security Deposits -
the Port should develop written procedures for security deposits, including: circumstances a deposit is required, and how the amount is determined, include requirement for a security deposit in the standard lease agreement, maintain a separate listing of security deposits, account for security deposits in the general ledger, conduct annual reconciliation of security deposits to the general ledger, circumstances and method used to refund deposits, amount of time Port will wait before writing off unrefunded deposit
In Progress as knew leases are created. Lizeht Zepeda, Senior Business Assistance Officer
Certificates of Insurances -
The Port should obtain certificates of insurance from each tenant demonstrating the appropriate coverages, limits and effective dates.
They should develop and implement procedures to assure that certificates of insurance are obtained when new tenants move in and each year thereafter upon expiration of each policy.
Port staff has established with all tenant contacts and has reached out to ensure that all tenants have updated certificates of insurances as well as business licenses. In addition, Port admin staff has created a shareable document on Teams where business licenses, insurance, and rent increases are checked monthly.
Lilia Corral, Management
Analyst
Goals and Operating Statistics -
The Port should clearly link its strategic goals to its key objectives each year. The goals should be very specific and measurable enough to know when they have been accomplished. The Port should also revise Port staff has established their goals for Fiscal Year 2022-2023:
1. Manage Port-owned leases to ensure compliance
2. Establish internal processes to ensure maximum financial benefits and comply with governmental mandates
Lizeht Zepeda, Senior
Business Assistance Officer
Exhibit 1
Port Tenant Information
11 its success indicators to assure that they are meaningful, cost- beneficial to father, and accurate. It is better to have a small number of meaningful successful indicators than a large number that are not important or hard to interpret.
3. Find opportunities to increase Port revenue with existing resources
4. Create a Port marketing plan
5. Develop an efficient online lay berth form to help increase revenue Reduce health risks from the operations at the Port since the adoption of the Port of Richmond Clean Air Action Plan
Financial Procedures -
The Port should identify and document its significant financial procedures, except for any existing City procedures that are adequate to address Port activities. Procedures should include those tasks required to be performed by Port employees for all of the main business transactions.
Port staff and managerial staff have established financial several procedures for the Port. Firstly, a rent roll process has been established where admin staff creates the monthly rent roll and management staff reviews and approves it. The monthly rent roll is then sent to Finance, where an additional approval process takes place to ensure that no errors were made in the rent roll. On the first of every month, Finance generates invoices for all Port tenants with their rent. For invoicing, Port staff has standardized internal processes, having all invoices being sent to Accounts Payable (AP).
Once AP sends notification of the invoice, Port admin staff seeks approval from the supervising project manager/management staff to ensure services were provided. After approval, admin staff processes the invoice for payment.
Lilia Corral, Management
Analyst
Lizeht Zepeda, Senior
Business Assistance Officer
Shane Johnson, Senior
Administrative Analyst
Operating Procedures -
The Port should identify its major operating procedures. These procedures may include property management, disaster planning, communication with tenants, communication with tenants, tenant move-in and move-out, tenant background checks, security, budgeting and related monitoring, capital project planning and funding.
Port staff has identified their major operating procedures as property management, communication with tenants, budget and related monitoring, capital improvement project planning and funding. Port staff has created a shareable document to track all tenants in terms of leases, CPI increases, tenant contact information, insurance, business license, etc. In addition, Port staff holds monthly meetings to check in on statuses of tenants, contracts, and pending projects. Port staff has also closely monitored the Port Budget and has planned for capital improvement projects with outside contractor, CSW|ST2.
Lilia Corral, Management
Analyst
Lizeht Zepeda, Senior
Business Assistance Officer
Shane Johnson, Senior
Administrative Analyst
Robert Stevens, CSW|ST2
Engineer/Consultant
Marina Dredging Project -
The City should estimate the cost of Port management and staff time on the Marina dredging project. This amount should be included in the budget for reimbursement to the Port.
Costs for the Marina Bay dredging project were budgeted for in fiscal year 2010-2011, with $2,100,000 allocated for the project. The project was put out for bids in February 2011, and was granted to Salt River Construction Corporation, with the contract being executed that same year. In September 2012, Port staff requested a self-audit from Salt River Construction Corporation to determine compliance with labor provisions of the dredging contract. For fiscal years
N/A - previous staff
Exhibit 1
Port Tenant Information
12