December 13, 2011

The Port of Grays Harbor Commission Meeting for December 13, 2011 was called to order at 9:00 a.m.

Mary Nelson, Director of Finance & Administration, led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Jack Thompson - Commissioner
Chuck Caldwell - Commissioner
Stan Pinnick - Commissioner
Art Blauvelt - Legal Counsel
Gary Nelson - Executive Director
Leonard Barnes - Deputy Executive Director
Mary Nelson - Director of Finance & Administration
Marc Horton - Director of Environmental & Engineering Services
Lisa Benn - Accounting Manager
Mike Johnson - Contract & Project Manager
Robin Leraas - Westport Marina Manager
Shannon Anderson - Business & Trade Development Asst.
Seth Taylor - Marine Terminals Manager

VISITORS
Dave Michalsen - U.S. Army Corps of Engineers
John Hicks - U.S. Army Corps of Engineers
CJ Klocow - U.S. Army Corps of Engineers
Jim Soulia - Puget Sound & Pacific Railroad
Larry Giese - Deep Sea Charters
Dave Haviland - KBKW News
Mary Kaye Riley - GHPW
Fred Goheen - Jones Stevedore Company
Items discussed and action taken where required is as follows:

MINUTES
1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of November 8, 2011 Regular Commission Meeting as recorded in the Minutes Book No. 17 on pages 215 through 220 inclusive.

VOUCHERS
1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued November 18, 2011 and December 5, 2011, ACH/Wire Transfers No. 99900153 through and including No. 99900159 and General Disbursement Vouchers No. 78821 through and including No. 78982 for payment in the amount of $2,673,713.14.

REPORTS
AGP Storage & Port Rail Update
Gary Nelson announced that the new AGP Storage Facility is nearly ready for business. All silo construction is expected to be complete in February 2012. Leonard Barnes reported that the facility, labor and railroad are ready for testing by receiving product from rail cars into silos. An official grand opening of the facility is planned for April 2012.

Jim Soulia of Puget Sound & Pacific Railroad (PSAP) said the first train to be unloaded to the new storage will be arriving this evening. The PSAP is looking forward to providing rail service to the facility.

Marc Horton & Mike Johnson stated that the final walk-thru with the rail construction contractor is scheduled as the Marine Terminal Rail System is nearly completed.

Long-Term Management Strategy (LTMS) Preferred Option
Marc Horton reported that since the land area at the base of the South Jetty was breached in 1993, the Corps of Engineers has been providing emergency services to close the breach and prevent further breaching by placement of sand in the gap area. The Corps has also been studying the situation in an attempt to develop a long-term solution for the issue. After years of study and development of computer models, the Corps is about to present their preferred option for long-term management of the area.

CJ Klocow of the Corps of Engineers provided a Power Point presentation outlining the Corps’ study process of the issue and preliminary preferred LTMS alternative. Alternative 1B is currently being recommended and includes:
• Construction of a 500-foot structure along the existing jetty alignment
• Initial Beach Nourishment in Half Moon Bay
• Periodic Nourishment when an erosion trigger is reached on South Beach/Half Moon Bay

Corps of Engineers Coastal Engineer Dave Michalsen reviewed the Point Chehalis Revetment Structural Functionality Assessment with Commissioners. The wave environment has progressively increased in the last decade near Point Chehalis as a result of natural channel migration. In 2010, approximately 300 lineal feet of revetment was repaired and the City of Westport completed surface water runoff drainage improvements near the Westport Marina. These improvements reduced the risk of imminent threat to the structure of the revetment. Overtopping will still occur, but the City’s drainage improvements help to mitigate the flooding risk. Major rehabilitation of the entire revetment will continue to be pursued through the Corps’ O&M program.

Dredging Projects 2011-2012
Mike Johnson announced that American Construction began inner harbor maintenance dredging for the Corps mid-November. The Port’s contract for berth dredging is scheduled to being in January 2012 and will be completed by February 14, 2012. Estimated volume for Port-related work is 149,000 cubic yards and includes maintenance dredging at all four of the Port’s terminals and deepening of Terminal 3. All maintenance dredging and disposal site permits are secured. The Port is still awaiting the Corps permit for T3 deepening.

Centennial Celebration Wrap-Up
Shelli Hopsecger reported on the conclusion of the Port’s Centennial Year and all the various activities pursued throughout the year to educate the public about their port, engage the community to build knowledge and pride in their port, and recognize the partners and leadership that have played a major role in the development of the Port of Grays Harbor. The Port’s 100th Anniversary Celebration culminated in an informative spread on the Port by The Daily World, the dedication of the new Westport Viewing Tower, the unveiling of the Port’s Centennial Mural, and the announcement by the Washington Public Ports Association that the Port of Grays Harbor is the 2011 Port of the Year.

Vessel Activity
Leonard Barnes announced that in November 2011 the Port handled four ships and two barges. Year-to-date, the Port has had 66 ship calls and 15 barge visits with 1,052,492 MT handled. He reviewed with the Commission the shipping activities for December.

Public Comment
None

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Marc Horton reported that Anchor QEA was selected to accomplish ESA Documents and Sediment Sampling and Characterization for Terminal 3 Deepening.

Motion to approve the award of Contract No. 1663, ESA Document Preparation and Sediment Sampling and Characterization, to Anchor QEA in the amount of $80,563.70, was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor.

Action Item No. 2
Mike Johnson announced the following change orders are needed for Contract No. 1670, Port Area Asphalt Repairs:
• Change Order No. 2 – T-4 Dock Waterside Crane Rail and T-2 Parking Lot Repair. $25,800 plus sales tax
• Change Order No. 3 – T-4 Waterline Repair Asphalt Patching. $11,500 plus sales tax

Motion to authorize the Executive Director to award Change Orders Nos. 2 and 3 for Contract No. 1670, Port Area Asphalt Repairs to Lakeside Industries, Inc. in the amount of $40,433.20, including sales tax, was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor.

Resolution 2804
Mary Nelson provided the annual policy update for the amendment to Salary & Benefit Resolution. A recommendation to increase the salary range schedules by 2.5% and set the 2012 holiday schedule as presented was made.

Motion to adopt Resolution No. 2804 amending the Port’s Salary and Benefit policy by increasing the salary range schedules used to set employee compensation by 2.5%, and to adopt the 2012 holiday schedule was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution adopted.

Resolution 2805
Mary Nelson reported that annually, the Commission has given the Executive Director authority to sell surplus property up to $10,000 in value. Per the RCWs, this authority must be re-authorized each year.

Motion to adopt Resolution No. 2805, Delegating Authority to the Executive Director to certify, sell and convey Port surplus personal property valued at $10,000 or less during the 2012 calendar year was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted.

Resolution No. 2806
Art Blauvelt stated that annually, the Commission reviews Executive Director Gary Nelson’s performance and makes any needed adjustment in his salary. Commissioner Thompson has met with Mr. Nelson to discuss his performance. Recommendation is made to raise Mr. Nelson’s compensation by 5% in 2012.

Motion to adopt Resolution 2806: Amending the 2012 Compensation Terms of Mr. Gary G. Nelson’s Employment as Executive Director of the Port District was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Resolution Adopted.

Public Comment
None

NEW BUSINESS:
Legal Counsel Art Blauvelt administered the Oath of Office to Commissioner-Elect Jack Thompson.

Gary Nelson reviewed upcoming events:
• December 14 – Jobs Team Meeting
• December 22 – Representatives of the Governor’s Office and DOE will be at the Port for a tour
• January 5 – Legislative Send-Off
• January 6 – Westport Street Dedication

There being no further business to come before the Commission, the Regular Meeting recessed at 10:34 a.m.
The Board then went into Executive Session to consider the sale or lease of real property and discuss with legal counsel potential or actual litigation. No action to be taken during Executive Session. It was announced that the Executive Session would last two hours.
The Executive Session ended at 1:00 p.m., after a thirty-minute extension had been announced, and the Regular Meeting adjourned at that time.