COMMISSION MEETING February 12, 2008 The Port of Grays Harbor Commission Meeting for February 12, 2008 was called to order at 9:00 a.m. Mike Johnson led the meeting in the Pledge of Allegiance. Those in attendance at the meeting were as follows: COMMISSION AND STAFF 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 Mike Johnson - Contracts Administrator Seth Taylor - Marine Terminals Manager Robin Leraas - Westport Marina Manager Diane Souron - Business & Trade Development Assistant VISITORS Wes Brosman - Friends of Grays Harbor Mark Sixel - Sixel Consulting David Haviland - KBKW News Bill Lindstrom - Daily World Dick Dell - Private Citizen Jim Criel - ASN Mike Abel - Imperium Grays Harbor Lisa Marthe - Imperium Grays Harbor Billy Swor - ILWU Local #24 Brendan Mahaffey - RPMM Items discussed and actions taken where required are as follows: Commission President Stan Pinnick excused Commissioner Chuck Caldwell from the meeting as he was on vacation. MINUTES: 1. By motion made by Commissioner Thompson, seconded by Commissioner Pinnick and approved, the Commission adopted the Minutes of the January 8, 2008, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 85 through 92 inclusive. VOUCHERS: 1. By motion made by Commissioner Thompson, seconded by Commissioner Pinnick and adopted, the Commission approved for payment those Payroll Vouchers issued January 18, 2008 and February 5, 2008, and General Disbursement Vouchers No. 70459 through and including No. 70645 for payment in the amount of $866,120.96. REPORTS: Opportunities for Commercial Air Service Mark Sixel of Sixel Consulting from Eugene, OR has been putting together a consortium of northwest general aviation airport owners interested in commercial air service to Portland International Airport (PDX) by cooperatively applying for a Small Community Air Service Development Grant. Grant monies could support air service at Bowerman. Support could be in the form of offsetting the price of the tickets, waiving landing fees, guarantee of seats, etc. The focus has been on airports between 60 and 200 miles of PDX. Olympia, Bremerton, Tacoma Narrows, Port Angeles and Roseburg are already part of the consortium. Mr. Sixel invited the Port of Grays Harbor to participate. RPMM Update Brendan Mahaffey of RPMM reported that the company has the Shoreline Substantial Development Permit and is waiting on structural engineering of docks to be completed before applying for a building permit. They are currently operating their seafood purchasing over the Jolly Roger’s facilities. However, this land has recently been sold and condominiums are slated to begin construction at the site this summer. The company is working on permits to use the outfall at Firecracker Point for discharge of effluents from seafood processing operations. RPMM has recently acquired a haul-out barge that could handle vessels 50’ or less that wish to use repair facilities. The company is working with Port staff on possibly leasing additional water space adjacent to their existing lease in order to operate the barge. The barge’s existing NPDES permit is in the process of being reassigned from the Puget Sound area to Grays Harbor. Recreation & Conservation Office (RCO) Request for 28th Street Boat Launch This item was postponed to a later meeting. Westport Boat Basin Master Plan Update Lisa Benn reported on the recent series of Boat Basin Master Plan meetings held on January 30, 2008 in Westport. Port staff, along with Reid Middleton staff, met with key City of Westport staff early in the day to discuss a potential boat repair yard and identify necessary design criteria for the facility. An Advisory Committee Meeting, held at lunchtime, was well-attended with productive comments heard. Later the same day, a Community Meeting was held inviting the public to learn more about the findings of the demand study, proposed layout options, the proposed haul-out and boat repair yard, and to solicit further public input. Next Steps: Reid Middleton will incorporate the comments heard and received within the next few weeks into the draft master plan. It is expected that one more meeting will be held later in the Spring to present the plan and marina layout alternatives, including proposed phasing (and estimated costs) of marina infrastructure replacement and improvements over the short-, mid- and long-term. Wind Storm Damage Repairs Update Mike Johnson gave a brief status report on repairs to facilities damaged during the November and December storms. Repairs underway or completed included: • Floats 15 & 17 • Roofs of transit sheds A, B & C, Warehouses G & H, and Lana’s Hangar Café • Office repairs to Green Crow leased area • Window replacements at Airport Terminal Building & Warehouse E • HVAC roof door at the Main Office • Large tank insulation at Warehouse D • Yard lighting & Shop Doors Commissioner Thompson asked that staff look at areas with damaged riprap. Mr. Johnson reported that we are in the permitting process for these repairs. T2 Pile Cap Survey Mike Johnson reported that Berger ABAM has completed the survey of T2 pipe piles. Their report indicates that the dock is in good shape, including the fender system installed a few years ago, except for pipe piling on approaches. The upper five feet of these batter piling (classified as the “splash zone”) shows deterioration of the coating. Recommendations were for 79 of the 97 piles to have the coating replaced, preferably during the summertime. Rehabilitation of the coating will prevent the piling itself from incurring damage due to the elements. Staff anticipates bringing a project forth for Commission consideration at the March meeting. Vessel Activity Leonard Barnes reported that the Port has seen 5 vessel calls at its facilities already in 2008 and five more are already scheduled through March. The vessels are a combination of inbound oils/outbound biofuels for Imperium Grays Harbor and outbound bulk products for AGP. American Construction is currently in the Harbor performing annual channel maintenance dredging for the U.S. Army Corps of Engineers and plans on leaving equipment on the Harbor until dredging work can resume this summer after the fish window closure. Public Comment Lisa Marthe of Imperium Grays Harbor inquired if repair work on the T2 piling is expected to affect shipping activities at the facility? She was assured by both Mike Johnson and Leonard Barnes that the work will not affect the ship schedule and, if need be, will be scheduled around the ship schedule. Wes Brosman of South Aberdeen was complementary of the improvements the Port has made for ADA accessibility. He did remark that notices should be posted at the entrances indicating that the facility is accessible and where headsets for use during meetings are located. ACTION/RESOLUTION ITEMS: Action Item No. 1 Leonard Barnes reported that Ocean Gold Seafoods would like to rent the empty lot near Kings Restaurant in Westport in order to place a temporary HR office. Motion to authorize the Executive Director to negotiate and enter into Rental Agreement No. 1054 with Ocean Gold Seafoods, Inc. was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with two Commissioners in favor. Resolution 2704 Mike Johnson informed the Commission that, after several delays, the Corps has awarded the annual channel maintenance dredging contract. Following the direction of Commission action at the December 11, 2007 meeting authorizing staff to proceed with Contract No. 1570, Maintenance Dredging 2008 at Port facilities, a request was made to the Corps’ contractor to submit a proposal for removal of approximately 35,000 cubic yards of sediment. Legal Counsel Art Blauvelt announced that the proposal came in at an amount that is greater than the maximum allowable under the small works roster. Because of high mobilization costs, ranging from a low of $250,000 to a high of $2,900,000, it is recommended that the Port Commission conclude that there is no dredging contractor located in or near the Grays Harbor area, except for the Corps’ contractor, and that the mobilization costs for any other dredging contractor to come to Grays Harbor are prohibitively expensive for the anticipated amount of dredging, and that the only legitimately available contractor is this single source. Motion to adopt Resolution No. 2704 waiving the competitive bidding requirements pursuant to RCW 39.04.280 and awarding the 2008 dredging contract to American Construction was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with two Commissioners in favor. Resolution adopted. Public Comment None NEW BUSINESS: Gary Nelson went over several upcoming calendar items with the Commission. Commissioner Pinnick thanked staff for setting up an informative display at the Grays Harbor Trade Show on February 2 and for their participation attending to the booth and the Community. There being no further business to come before the Commission, the Regular Meeting recessed at 10:23 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 for two hours. The Executive Session ended at 2:00 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.