COMMISSION MEETING January 8, 2008 The Port of Grays Harbor Commission Meeting for January 8, 2008 was called to order at 9:01 a.m. Art Blauvelt led the meeting in the Pledge of Allegiance. Those in attendance at the meeting were as follows: COMMISSION AND STAFF Chuck Caldwell - Commissioner Stan Pinnick - Commissioner Jack Thompson - Commissioner Art Blauvelt - Legal Counsel Gary Nelson - Executive Director Mary Nelson - Director of Finance & Administration Leonard Barnes - Deputy Executive Director Lisa Benn - Accounting Manager Seth Taylor - Marine Terminals Manager Robin Leraas - Westport Marina Manager Diane Souron - Business & Trade Development Assistant VISITORS Wes Brosman - Friends of Grays Harbor Mark Avery - EAA Roy Nott - Paneltech International LLC Julia Gibb - GH Council of Governments Theressa Julius - GH Council of Governments Bill Lindstrom - The Daily World Lisa Marthe - Imperium Grays Harbor Sid Watts - Imperium Grays Harbor Nathan Corser - IDC Architects Roy Anderson - The Beck Group Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Thompson, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of the December 11, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 79 through 84 inclusive. VOUCHERS: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously adopted, the Commission approved for payment those Payroll Vouchers issued December 20, 2007 and January 4, 2008, and General Disbursement Vouchers No. 70309 through and including No. 70458 for payment in the amount of $1,004,090.46. REPORTS: Research & Development Facility Planning Study Roy Anderson of The Beck Group and Nathan Corser of IDC Architects provided a PowerPoint presentation reporting on Phase 2 of the research & development facility project, which is nearing completion: the conceptual and feasibility phase. Three potential laboratory sites have been identified in the draft report currently under review. In order to complete the Phase 2 Feasibility Study, stakeholder feedback is being solicited and a business operating plan is being developed. Once the feasibility study is completed, next steps in the project include: • Final site selection • Development of a funding plan & securing funding • Final Engineering & Construction Sid Watts of Imperium Grays Harbor and Roy Nott of Paneltech International both spoke in favor of the project and briefly described how their companies would be able to utilize this facility in developing next-generation products. WSDOT Special Project Site Selection Update Gary Nelson announced that WSDOT plans to hold an Initial Public Scoping Meeting on January 17, 2008 at Hoquiam High School. The same day, a Cooperative Agency Scoping Meeting is being held in Olympia. The Port will have representatives at both meetings. T1 Feasibility Study Gary Nelson explained that as Imperium Grays Harbor and AGP shipping activity increased in the later months of 2007, the need to look at potential enhancements to Terminal 1 (T1) to accommodate deep-water vessels became evident. With funding assistance from a Governor’s Emergency Reserve Fund Grant in the amount of $50,000, the Port is undertaking a feasibility study concerning T1. Vessel Activity Leonard Barnes reported that the Port had 37 vessel calls at its facilities in 2007 loading/unloading 439,728 MT of product. Already there are three AGP vessels scheduled for January plus a couple of ships for IGH. An AGP vessel is already scheduled to be here in February as well. Gary Nelson informed the Commission that Capt. Cooke had been injured in rough seas while taking a log ship out the previous day. When a large wave hit the ship, he was thrown to the side of the boat and suffered bruised and cracked ribs. New Business Commission President Chuck Caldwell recognized Western Steel’s long standing as a Port tenant. In 1937, Western Machinery Exchange entered into Lease No. 17. In 1958, Western Steel signed Lease No. 151 and today the company operates under three leases with the Port. The Port displayed an engraved clock that will be presented to Western Steel owner, Oscar Rosenkrantz, commemorating the over 70-year milestone. Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Leonard Barnes reported that RPMM would like to amend their lease to include use language allowing for seafood processing. Motion to authorize the Executive Director to negotiate and amend Lease Agreement No. 995 with RPMM, LLC was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 2 Legal Counsel Art Blauvelt read a memo from the Executive Director dated January 3, 2008 that announced an Emergency Declaration for damages from the storm of December 2-3, 2007 and award of contracts for Emergency Repairs. Several Port properties were damaged during the storm, but three in particular required immediate repairs to prevent further water and wind damage, provide a secure and safe place for product and personnel, and provide adequate lighting on Port property and docks for safe operations by Port personnel and longshoremen: • T4 Transit Sheds A, B & C roofs damages • Maintenance Shop equipment doors damages • Damaged lighting throughout the Marine Terminal complex Under RCW 39.04.280, a Port is authorized to declare an emergency and waive competitive bidding and award a contract to address the emergency. Such an emergency was found and the bidding requirements were waived. The following businesses were awarded contracts under this Emergency Declaration: • Rognlin’s, Inc. – Repair the damage done to Transit Sheds at Terminals No. 4, buildings A, B & C in the total amount of $280,000, exclusive of sales tax and permits. • Rognlin’s, Inc. – Repair damage done to the Maintenance Shop doors in the total amount of $126,000, exclusive of sales tax and permits. • Campbell Electric – Repair the light fixtures and poles on the Port property in the amount of $298,400, exclusive of sales tax and permits. Motion to ratify the Executive Director’s finding of an emergency and ratify the awarding of the contracts for repair to the storm damage was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 3 Leonard Barnes described damage incurred at the Port’s Equipment Wash Facility during the December 2-3, 2007 storm and presented a plan for repair of the facility. Motion to authorize the Executive Director to proceed with Contract No. 1576, Equipment Wash Facility Repair was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 4 Leonard Barnes described more damage incurred during the December 2-3, 2007 storm. This included yard lighting at the Maintenance Shop and the T3 Property. A plan was presented for repair of these facilities. Motion to authorize the Executive Director to proceed with Contract No. 1577, T3 & Maintenance Shop Lighting Repairs was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution 2700 Art Blauvelt reported that under the terms of the Rail Line Development Agreement between the Port of Grays Harbor and Imperium Grays Harbor, LLC, (IGH) the Port has the option to purchase the rail line commonly known as the West First Lead Track from IGH. The Washington State Department of Transportation, Freight System Division, has awarded the Port two rail access grants to provide sufficient funds to purchase the West First Lead Track. Motion to adopt Resolution No. 2700 approving the purchase of the West First Street Lead Track and authorizing the Executive Director to sign documents necessary to purchase the West First Street Lead Track was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2701 Art Blauvelt introduced the documentation necessary for the Port of Grays Harbor to formally accept the funding from WSDOT for purchase of the West First Lead Track. Motion to adopt Resolution No. 2699 accepting funding from WSDOT for purchase of West First Lead Track was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2702 Art Blauvelt presented a resolution amending the 2008 compensation terms of Executive Director Gary Nelson. The action was a result of the annual performance review conducted by the Commission. Motion to adopt Resolution No. 2702 amending the 2008 compensation terms of Mr. Gary G. Nelson’s employment as Executive Director of the port district was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners present in favor. Resolution 2703 Director of Finance and Administration Mary Nelson presented the proposed resolution concerning Commission Travel for 2008. Motion to adopt Resolution No. 2703 authorizing anticipated Commission travel during the calendar year 2008 was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Public Comment None NEW BUSINESS: 2008 Board Reorganization/2008 Commission Appointments It was moved by Commissioner Thompson and seconded by Commissioner Pinnick that the 2008 Board be as follows: President - Stan Pinnick Vice President - Jack Thompson Secretary - Chuck Caldwell Motion passed with all Commissioners in favor. It was moved by Commissioner Pinnick and seconded by Commissioner Thompson that the 2008 Commission Appointments be as follows: Auditor - Mary Nelson Legal Counsel - Ingram, Zelasko & Goodwin Executive Director - Gary G. Nelson Art Blauvelt, of Ingram, Zelasko & Goodwin, disclosed a remote conflict of interest existing between his firm and the Port. The law firm’s Office Manager, Kris Barnes, is the wife of the Port’s Deputy Executive Director, Leonard Barnes. Such disclosure was recommended during the Port’s prior year audit. Motion passed with all Commissioners in favor. It was moved by Commissioner Thompson and seconded by Commissioner Pinnick that the following assignments be made for 2008: G.H. Council of Governments Chuck Caldwell - Commissioner Lisa Benn - Staff Member Washington Public Ports Assoc. Jack Thompson - Commissioner Gary Nelson - Staff Member American Assoc. of Port Authorities Stan Pinnick - Commissioner Gary Nelson - Staff Member Association of Pacific Ports Chuck Caldwell - Commissioner Gary Nelson - Staff Member Chehalis Basin Fisheries Task Force Stan Pinnick - Commissioner Ken Rausch - Staff Member Chehalis Basin Partnership Chuck Caldwell - Commissioner Mike Johnson - Staff Member G. H. Economic Development Council Jack Thompson - Commissioner Leonard Barnes - Staff Member G.H. Tourism Stan Pinnick - Commissioner Robin Leraas - Staff Member Vision 2020 Stan Pinnick - Commissioner Leonard Barnes - Staff Member G.H. Public Development Authority Jack Thompson - Commissioner Gary Nelson - Staff Member Motion passed with all Commissioners in favor. Commissioner Thompson reported that he participated in a meeting at the Port of Tacoma in late-December, 2007 concerning the rail yard proposed at Maytown as well as the rail line between the Ports of Tacoma and Olympia. Another meeting is scheduled for January 31 in Olympia at St. Martin’s College. Gary Nelson informed the Commission of several scheduling items: • January 17-18 is the AGP Annual Meeting in Omaha. Commissioners Pinnick and Thompson will be attending on behalf of the Port. • January 17 Commissioner Caldwell will be attending the Association of Pacific Ports Semi-Annual Conference. • January 30 a series of Boat Basin Master Plan Meetings, including a Community Meeting at 6 p.m., will be held in Westport. The Regular Meeting was recessed to open the Annual Meeting of the Industrial Development Corporation at 10:30 a.m. The Industrial Development Corporation Meeting was closed at 10:36 a.m. and the Regular Commission Meeting reconvened. There being no further business to come before the Commission, the Regular Meeting recessed at 10:37 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 until 12:30 p.m. The Executive Session ended at 12:30 p.m., and the Regular Meeting adjourned at that time.