COMMISSION MEETING April 8, 2008 The Port of Grays Harbor Commission Meeting for April 8, 2008 was called to order at 9:03 a.m. Seth Taylor 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 Seth Taylor - Marine Terminals Manager VISITORS Jim Criel - ASN Bill Lindstrom - Daily World Mike Abel - Imperium Grays Harbor Lisa Marthe - Imperium Grays Harbor Scott Branlund - Berger ABAM Rich Bergeron - Berger ABAM 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 March 11, 2008, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 99 through 104 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 March 20, 2008 and April 4, 2008, and General Disbursement Vouchers No. 70803 through and including No. 70975 for payment in the amount of $1,393,424.39. REPORTS: Vessel Activity Leonard Barnes reported that 13 vessels have loaded at the Port’s facilities during the first quarter of 2008 as compared to 3 vessels for the same period in 2007. An additional seven vessels are scheduled over the months of April and May already, two of them for Imperium Grays Harbor and five for AGP cargoes. T1 Existing Conditions Survey & Upgrade Survey Scott Branlund of Berger ABAM provided a PowerPoint presentation outlining their conclusions on the feasibility of upgrading Terminal 1 to be able to handle Panamax-size vessels as well as accommodating ocean-going barges. Mr. Branlund reported that the existing terminal was found to be structurally sound but in need of repairs to bring it back to original condition. Four upgrade options were discussed, including the estimated costs and dredging requirements of each. Port staff will continue to evaluate the options, work with terminal customers, and develop a financing plan. It is anticipated that the project will be brought before the Commission at a later meeting as an action item. Hungry Whale Cleanup Site Status Diane Souron reported that there is soil contamination at the Hungry Whale Site that will require action to clean it up. The contamination has been determined to be the result of an old release of contaminants. The Washington Department of Ecology (DOE) is in the process of reviewing the draft remedial investigation report. A field investigation is expected to occur in August and a final Feasibility Study and Solution developed by the end of the year. DOE funding participation of cleanup costs is expected to be at the 75% level. Bowerman National Wildlife Refuge 2008 Shorebird Festival Diane Souron briefly reported on the upcoming 13th Annual Shorebird Festival, scheduled for May 2-4, 2008. The Port is a sponsor of the event. Port Security Grant Application Round Lisa Benn outlined the recent grant application submitted to the Department of Homeland Security under its FY08 Port Security Grant Program. The Port is proposing the designation of a single point entry to the Marine Terminal Cargo Yard which includes installation of a guard station, additional fencing at East Terminal Way and installation of automatic gate openers at strategic locations. The grant request is for $205,476 or 75% of project costs. The Port would fund the remaining 25% or $68,492. A decision on the application is expected to be announced in late-Spring/early-Summer. Recreation Lands and Facilities Plan Diane Souron explained that in order to be eligible for certain state and federal grant funding opportunities to make improvements to Port-owned recreational areas, projects need to be included in a comprehensive park plan. Improvements being considered at the 28th Street Boat Launch would fall into this category. Theressa Julius of the Grays Harbor Council of Governments (COG) outlined steps that will occur over the next year to accomplish the Plan development, including creation of an Advisory Committee in order to obtain direct stakeholder input in the process. Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Leonard Barnes explained the need for several airport improvements: replace the rotating beacon and tower with a new beacon and tip-down pole: renovate the electrical building; relocate a hold sign; and replace a light standard in the airport terminal parking lot. 95% of funding for the project will come from the Federal Aviation Agency Airport Improvement Program and a Washington State Department of Transportation Aviation Division grant. Motion to authorize the Executive Director to proceed with the airport improvements 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’s Terminal 3 wood-timbered fender system is in need of repairs, including replacement of treated wood piling that are either missing or broken, walers, roll chocks, holding chains and other equipment. Motion to authorize the Executive Director to call for bids on Contract No. 1584, T-3 Fender System Repair 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 electrical equipment supplying power to the Terminal 3 Dock Office and lights needs to be replaced and/or repaired due to the age of the equipment and damaged condition resulting from repeated vandalism. Motion to authorize the Executive Director to call for bids on Contract No. 1585, T-3 Electrical Repairs was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 4 Mike Johnson reported that the Port’s Terminal 4A wood-timbered fender system is in need of repairs, including replacement of treated wood piling that are either missing or broken, roll chocks, holding chains and other equipment. Motion to authorize the Executive Director to call for bids on Contract No. 1586, T-4A Fender System Repair was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 5 Mike Johnson described additional damage to the light poles and equipment found by the contractor working on the yard lighting repairs from the December 12, 2007 storm. A change order to the scope of Contract No. 1575 is necessary to provide for the additional repairs. Our insurance carrier has approved the additional work. Motion to authorize the Executive Director to award Change Order No. 1 for Contract No. 1575, Emergency Storm Damage Repairs to Yard Light in the amount of $55,850 plus sales tax to Campbell Electric Company, Inc. was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 6 Leonard Barnes reported that Paneltech International LLC would like to extend the term of their lease for Warehouse A by one year. Motion to authorize the Executive Director to amend Lease Agreement No. 947 with Paneltech International LLC was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 7 Leonard Barnes informed the Commission that the Grays Harbor Public Utility District No. 1 (PUD) has requested a one-year lease for a portion of Warehouse I for off-loading, loading and storing of meters and associated equipment. Motion to authorize the Executive Director to enter into Lease No. 1057 with the PUD was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 8 Gary Nelson reported that since 1980 and every five years thereafter, the WPPA and WSDOT have jointly commissioned a Marine Cargo Forecast. Work has begun on the next report, due out in 2009. The WPPA portion of costs are funded by participating ports, with larger ports paying a greater share. Motion to authorize the participation of the Port of Grays Harbor in the 2009 Marine Cargo Forecast was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Resolution 2708 Mike Johnson reported that Allpress and Moore R.R. Signal Contractors has completed the installation of a new rail signal system at West First Street. Motion to adopt Resolution No. 2708 accepting the work done under Contract No. 1567 by Allpress and Moore R.R. Signal Contractors was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution adopted. Resolution 2709 Robin Leraas reported that the Port had seized several vessels as abandoned for non-payment of moorage charges. Request was made to authorize the sale at public auction of seized vessels KOBY LYNN, LILJA, PRINCESS PAT and SITKIN ISLAND. Motion to adopt Resolution No. 2709: Authorization to Sell Abandoned Vessels was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Resolution adopted. Resolution 2710 Mary Nelson presented a proposal to amend the Grays Harbor Pilotage Tariff as follows: • Increase the draft and tonnage fees 1.8% for all terminals. • Amend the “pension fee” from $174 to $197 per assignment, as recommended by the Puget Sound Pilots Association, who administers the Grays Harbor pension funds for eligible Grays Harbor pension funds. • Change the travel fee from $55 to $100, based on current for-hire transportation costs between Aberdeen and Westport. Motion to adopt Resolution No. 2710 authorizing the Executive Director to recommend the proposed amendments to the Grays Harbor Pilotage Tariff as listed in WAC 363-116-185 to the Washington State Board of Pilotage Commissioners was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment Jim Criel of Aberdeen thanked the Port for the improvements being made at Bowerman Field Airport. NEW BUSINESS: Gary Nelson acknowledged the diligence of Leonard Barnes and Art Blauvelt in working with the Washington Department of Natural Resources in developing a plan allowing for use of the underground pipe located at Firecracker Point in Westport. Gary Nelson noted that management representatives from the Department of Community, Trade & Economic Development (CTED) are scheduled to tour the Port on April 18. Mary Nelson announced that the Exit Conference for the Port’s annual audit has been scheduled for April 22 with the State Auditor’s Office. There are no findings. Leonard Barnes reported that the trailer loader at East Terminal Way is broke down. The Port is having difficulties locating parts for the 1960’s equipment. As a result, a new loader has been ordered and a used one (that needs a replacement motor) has been acquired. The new loader will not be delivered for several weeks. Maintenance personnel are working on getting the used one up and running. Gary Nelson announced that the purchase of the West First Lead Track from Imperium Grays Harbor closed on April 7, 2008. Commissioner Pinnick and Gary Nelson described their recent attendance to the AAPA Spring Conference in Washington D.C. and their visits with various Washington State Congressional Delegation staff. Commissioner Thompson complemented Leonard Barnes and Facility Maintenance personnel, particularly Ken Johnson, on the clean up of the cargo yard near East Terminal Way. There being no further business to come before the Commission, the Regular Meeting recessed at 11:00 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 1:30 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.