COMMISSION MEETING March 11, 2008 The Port of Grays Harbor Commission Meeting for March 11, 2008 was called to order at 9:02 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 Chuck Caldwell - 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 Robin Leraas - Westport Marina Manager Diane Souron - Business & Trade Development Assistant VISITORS Jim Heikel - Private Citizen Eric Johnson - Medicine Creek Consulting Bill Lindstrom - Daily World Mike Abel - Imperium Grays Harbor Lisa Marthe - Imperium Grays Harbor Shelly Dixon - Lana’s Hangar Café Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Thompson and approved, the Commission adopted the Minutes of the February 12, 2008, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 93 through 98 inclusive. VOUCHERS: 1. By motion made by Commissioner Thompson, seconded by Commissioner Caldwell and adopted, the Commission approved for payment those Payroll Vouchers issued February 20, 2008 and March 5, 2008, and General Disbursement Vouchers No. 70646 through and including No. 70802 for payment in the amount of $906,111.20. REPORTS: Vessel Activity Leonard Barnes reported that an AGP vessel is currently on berth loading soy meal. The cement hatch cover has been used very successfully to load recent ships in inclement weather. Five more vessels (three AGP and two IGH) are scheduled at Terminal 2 before the end of March. As of now, Imperium Grays Harbor has a vessel scheduled in April. However, more bookings are expected for April. 2007 Year-End Port Activity Report Mary Nelson, Director of Finance and Administration addressed the Commission giving an overview of the goals of the Port. She then introduced various staff members who reported on activity of each Operating Division with a PowerPoint presentation as follows: Leonard Barnes - Marine Terminals & Industrial Properties Diane Souron - Bowerman Airport Robin Leraas - Westport Marina Ms. Nelson followed the operation reports with a consolidated report of the Port’s financial results for 2007. Commissioner Pinnick extended his thanks to all Port staff for their hard work in making 2007 a good year for the Port. Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson informed the Commission that the current aviation fuel supply and delivery contract is due to expire April 30, 2008. Motion to authorize the Executive Director to call for bids on Contract No. 1582, Aviation Fuel Supply & Delivery was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Mike Johnson reported that the Port is ready to proceed with upgrading the boarding floats at the Westport Marina Boat Launch. The State of Washington Recreation and Conservation Office (RCO) has approved grant funding, with a Port match of 33%, for the project. Motion to authorize the Executive Director to call for bids on Contract No. 1583, Westport Boat Launch Float Improvements was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Mike Johnson stated that Berger ABAM recently completed a survey of Terminal 2 and found the dock in good condition, except for the steel piling that support the approaches. The steel on these piling is corroded and needs to be refurbished in order to maintain their structural integrity. Sandblasting will be accomplished to prepare each pile for a coating of a special Marine Paint. Motion to authorize the Executive Director to call for bids on Contract No. 1580, Terminal 2 Pipe Pile Repairs was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution 2705 Mike Johnson reported that American Construction Company has completed the maintenance dredging of Terminal 2. 32,936 cubic yards of sediment were removed from the berth. Motion to adopt Resolution No. 2705 accepting the work done under Contract No. 1570 by American Construction Company was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Resolution adopted. Resolution 2706 Mary Nelson presented a list of past due customer accounts receivable that have been determined to be no longer collectible and have been referred to collection agency. Motion to adopt Resolution No. 2706: Accounts Receivable Bad Debt Write-Off was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution adopted. Resolution 2707 Leonard Barnes informed the Commission that Port Staff had been reviewing the opportunity to pursue commercial air service at Bowerman Field since Mark Sixel’s presentation the previous month. The plan is to hire Mr. Sixel’s firm to prepare a cooperative application for a Small Community Air Service Development Grant along with a consortium of Northwest general aviation airport owners interested in commercial air service to Portland International Airport. Motion to adopt Resolution No. 2707 authorizing the Executive Director to sign a consulting agreement with Sixel Consulting was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution adopted. Public Comment None NEW BUSINESS: Leonard Barnes presented a request received from Shelly Dixon, Inc. to enter into a new lease agreement for the restaurant known as Lana’s Hangar Café located at Bowerman Field. Ms. Dixon recently purchased the business from the retiring owner and plans to continue to operate the business under the same name. Ms. Dixon was introduced and briefly described her plans for the business. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1055 with Shelly Dixon, Inc. was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Gary Nelson informed the gathering that he had received a copy of Commissioner Jack Thompson’s resignation from the Board of Directors of Westport Shipyard, effective February 1, 2008. During his tenure as a Director for the Westport Shipyard, Commissioner Thompson has recused himself from discussions and decisions concerning business dealings between the Port of Grays Harbor and Westport Shipyard. Commissioner Thompson remarked on the outstanding job accomplished by Executive Director Gary Nelson and his staff in working on locating the WSDOT Pontoon Construction Project at the Port’s IDD No. 1 site in Hoquiam. Hat’s off to staff for the fabulous job of getting us to this point, where the Governor’s Office announced the previous week that the State has chosen this site for the project. Gary Nelson stated that last week’s announcement was a big step for the Port and the Community. He also acknowledged that the efforts by the Port and the Community would not have been possible without the knowledge and expertise of the Grays Harbor Council of Government’s Executive Director, Vicki Cummings. The Port will be hosting a meeting concerning implementation of the Transportation Workers’ Identification Credentialing (TWIC) program. The federal TWIC consultant will meet with stakeholder representatives on March 14 at the Port in order to discuss a temporary application processing location where those Grays Harbor maritime workers needing TWIC cards can go, without having to travel to Tacoma or Seattle. Gary Nelson went over several upcoming calendar items with the Commission. There being no further business to come before the Commission, the Regular Meeting recessed at 10:38 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 2:00 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.