COMMISSION MEETING January 12, 2010 The Port of Grays Harbor Commission Meeting for January 12, 2010 was called to order at 9:03 a.m. Mike Johnson led the meeting in the Pledge of Allegiance. Legal Counsel Art Blauvelt administered the Oath of Office to Commissioner-Elect Stan Pinnick. Those in attendance at the meeting were as follows: COMMISSION AND STAFF Stan Pinnick - Commissioner Jack Thompson - Commissioner Chuck Caldwell - Commissioner Art Blauvelt - Legal Counsel Gary Nelson - Executive Director Leonard Barnes - Deputy Executive Director Mary Nelson - Director of Finance & Administration Lisa Benn - Accounting Manager Mike Johnson - Contracts Administrator Robin Leraas - Westport Marina Manager Seth Taylor - Marine Terminal Manager Diane Souron - Business & Trade Development Asst. VISITORS Whitey Forsman - Washington Crab Producers, Inc. Fred Goheen - Jones Stevedoring Company Ray Toste - Washington Dungeness Crab Fishermen’s Association Mark Burch - HDR Inc. Marc Horton - Skillings Connolly Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes of the December 8, 2009, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 19 through 24 inclusive. VOUCHERS: 1. By motion made by Commissioner Thompson, seconded by Commissioner Caldwell and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued December 18, 2009 and January 5, 2010, ACH/Wire Transfers issued December 22 and December 28, 2009, and General Disbursement Vouchers No. 74530 through and including No. 74692 for payment in the amount of $1,972,255.37. REPORTS: Foreign-Trade Zone (FTZ) No. 173 Activity Report Lisa Benn briefly discussed activity in the Port’s FTZ since its inception in 1991. In 2007, Imperium Grays Harbor (IGH) began using the Zone’s advantages and received manufacturing authority status in 2008. Westway Terminal Company requested activation in November 2009 of their leased property as an FTZ. The U.S. Customs and Border Patrol is processing the activation request. Marina Crab Season & MRC Update Robin Leraas informed the Commission that 1.7 million pounds of Dungeness crab were landed in Westport during the first 10 days of this year’s season. This is a 20-30% improvement over 2009. The Grays Harbor Marine Resources Committee (MRC) was established in March 2009 by Grays Harbor County Commissioners. MRC activities have focused on water quality assessment and monitoring, community workshops, and education and outreach. Ms. Leraas is the Port’s Representative to the MRC. T1 Berth Enhancement Project Mitigation Update Mike Johnson reported what measures will be accomplished to mitigate the impacts to the estuary substrate footprint from the T1 Berth Enhancement. In addition to removing creosote pilings at Terminal 1, over water decking will be removed from the existing structure and debris along the IDD No. 1 shoreline will be removed above and below the OHWL. The Port has proposed mitigation to compensate for the installation of two additional mooring dolphins. The proposal made to WDFW includes removal of creosote piling and shoreline debris at Aberdeen Landing. FAA – Willis Crane Update Leonard Barnes presented a short slideshow depicting the crane recently erected by Willis Enterprises at their Terminal No. 3 upland leased facility. The 102-foot crane will be used for moving logs. Because of the proximity to the airport, a Determination of No Hazard to Air Navigation was required from the FAA. The final determination was received November 19, 2009. Vessel Activity Leonard Barnes reported that December was a busy month with six ships and six barges loaded/unloaded at Port facilities with 188,441 MT of total cargoes. This brings the total number of vessels handled for 2009 to 45 ships and 20 barges. A number of vessels and barges are scheduled for January and February, including a Partner Shipping vessel taking the first export shipment of Chrysler automobiles. Public Comment Ray Toste, Washington Dungeness Crab Fishermen’s Association (WDCFA), is on the Marine Resources Committee for Grays Harbor. He expressed his hopes that the Port’s Marina Manager Robin Leraas will be selected Chairperson of the MRC. Mr. Toste reported that the crab season started out well, but by the second pull of pots, numbers of crab caught had dwindled considerably. The price is low this year, fishermen are already moving gear to find crab and some out of town fishermen are leaving the area early. The WDCFA is working in Olympia to obtain a declaration of disaster for this year’s crab season. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that two bids had been received on the Terminal 3 Enhancements construction contract as follows: • Redside Construction, LLC $484,588.35 • Quigg Bros., Inc. $495,012.23 Both of these bids exceeded the engineer’s estimate of $275,000 to $315,000. Staff is recommending that the Commissioners review and reject bids on Contract No. 1608, Terminal 3 Enhancements due to the high cost and that both bids exceeded the budget allowed for this project. Staff will review the submitted design, possibly change the scope of work and re-bid the project at a later date. Motion to reject all bids on Contract No. 1608, Terminal 3 Enhancements due to the over-budget bids received was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Leonard Barnes informed the Commission that the Basket House Gift Shop lease along the Main Dock in Westport was one of five that expired December 31, 2009. The owner has requested to enter into a new lease for the water area. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1078 with Basket House Gift Shop, Inc. was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Leonard Barnes reported that Pettit Oil Company has requested a new lease with the Port to replace their expiring Lease No. 592 for property at 2419 West First Street in Aberdeen. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1079 with Pettit Oil Company was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 4 Leonard Barnes updated the Commission on plans to extend a 31,940-foot railroad spur into Terminal No. 4 to meet the growing shipping activities of private shippers and processors. The first step in accomplishing this is to obtain the various permits required for the project. Marc Horton of Skillings Connolly talked about potential permit issues when federal funding is involved in a project. Motion to authorize the Executive Director to proceed with the permitting of the Marine Terminal Rail System project was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution 2757 Mary Nelson presented the proposed resolution concerning Commission Travel for 2010. Motion to adopt Resolution No. 2757 authorizing anticipated Commission travel during the calendar year 2010 was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2758 Mike Johnson reported that Hickey Marine Enterprises, Inc. had finished work under Contract No. 1607-B, Terminal 1 Enhancement Project Dredging and Terminal 2 Maintenance Dredging. Motion to adopt Resolution No. 2758: Completion and Acceptance of Contract No. 1607-B Terminal 1 Enhancement Project Dredging and Terminal 2 Maintenance Dredging was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2759 Leonard Barnes introduced Jon Holladay from HDR, Inc. to talk about the Marine Terminal Rail System Plan. The plan design allows for servicing the auto terminal and adding additional grain activities to the existing rail needs for the Port. The project can be accomplished in four phases or in combined phases, as funding allows. Motion to adopt Resolution No. 2759: Authorizing a Rail System Update to the Port of Grays Harbor Marine Terminal Master Plan Dated February 2000 and Authorizing the Executive Director to Execute Necessary Documents was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment Whitey Forsman, Washington Crab Producers, responded to a query by Commission Thompson concerning the status of the Westport operation since the December 2009 fire during which their meal plant was destroyed. Mr. Forsman informed those present that Washington Crab has arranged for shell disposition at a temporary location and are operating as normal as possible, given the building loss. NEW BUSINESS: 2010 Board Reorganization/2010Commission Appointments It was moved by Commissioner Caldwell and seconded by Commissioner Thompson that the 2010 Board be as follows: President - Jack Thompson Vice President - Chuck Caldwell Secretary - Stan Pinnick Motion passed with all Commissioners in favor. It was moved by Commissioner Thompson and seconded by Commissioner Caldwell that the 2010 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. Motion passed with all Commissioners in favor. It was moved by Commissioner Caldwell and seconded by Commissioner Thompson that the following assignments be made for 2010: G.H. Council of Governments Chuck Caldwell - Commissioner Leonard Barnes - Staff Member Washington Public Ports Assoc. Jack Thompson - Commissioner Gary Nelson - Staff Member American Assoc. of Port Authorities Jack Thompson - 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. Shipping Club Stan Pinnick - Commissioner Leonard Barnes - Staff Member G.H. Tourism Chuck Caldwell - Commissioner Robin Leraas - Staff Member Vision 2020 Stan Pinnick - Commissioner Leonard Barnes- Staff Member Washington Coast Sustainable Salmon Partnership Jack Thompson - Commissioner Gary Nelson - Staff Member G.H. Public Development Authority* Jack Thompson - Commissioner Gary Nelson - Staff Member *Appointment of Port’s GHPDA Position 3 Director took place at the July 2007 Regular Commission Meeting for the 3-year term beginning in August 2007. Motion passed with all Commissioners in favor. The Regular Meeting was recessed to open the Annual Meeting of the Industrial Development Corporation at 10:29 a.m. The Industrial Development Corporation Meeting was closed at 10:34 a.m. and the Regular Commission Meeting reconvened. There being no further business to come before the Commission, the Regular Meeting recessed at 10:36 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 12:45 p.m., after a fifteen-minute extension had been announced, and the Regular Meeting adjourned at that time.