COMMISSION MEETING April 10, 2007 The Port of Grays Harbor Commission Meeting for April 10, 2007 was called to order at 9:00 a.m. Gary Nelson, Executive Director, 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 Art Blauvelt - Legal Counsel Gary Nelson - Executive Director Leonard Barnes - Deputy Executive Director Lisa Benn - Accounting Manager Mike Johnson - Contracts Administrator Ed McCullough - Marine Terminals Manager Robin Leraas - Marina Manager Diane Souron - Business & Trade Development Asst. VISITORS Desireé Dodson - Westport City Council John Funderburk - Sound Environmental Strategies Ryan Bixby - Sound Environmental Strategies Carl Brownstein - Grays Harbor 4H Longboat Club Kevin Caskey - Grays Harbor Amateur Radio Club Richard Carroll - Ocean Gold Seafoods, Inc. William Schmauss - Harbor Alternate Living Association Jerry Hern - Private Citizen Items discussed and action taken where required are as follows: MINUTES: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and approved, the Commission adopted the Minutes of the March 13, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 16 through 20 inclusive. VOUCHERS: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and adopted, the Commission approved for payment those Payroll Vouchers issued March 20, 2007 and April 5, 2007, and General Disbursement Vouchers No. 68792 through and including No. 68941 for payment in the amount of $972,250.95. REPORTS: Pacific Challenge Competition May 18-20 Carl Brownstein, Group Leader for the Grays Harbor 4H Longboat Club, spoke about the upcoming Pacific Challenge Competition May 18-20, 2007. The Club is hosting the longboat competition at the Port’s Aberdeen Landing location. The Coast Guard Auxiliary will be providing 24/7 security for boats, including Knutson Tugboats, at the site. Grays Harbor Amateur Radio Club Celebrating 50-Year Anniversary Kevin Caskey, Secretary/Treasurer of the GH Amateur Radio Club, informed the Commission about their planned special event station at Bowerman Field’s terminal building during the Shorebird Festival the weekend of April 28-29 to mark their 50th Anniversary. Mr. Caskey thanked the Port for letting them use the building to set up 8-9 different radio stations in the hopes of generating interest in the hobby. Hungry Whale Cleanup Site Status John Funderburk and Ryan Bixby of Sound Environmental Strategies updated Commission and staff on the status of the cleanup site. The Department of Ecology has approved 75/25 grant funding to complete a remedial investigation/feasibility study for the site. Ocean Cold Storage Update Ocean Gold Vice President Richard Carroll provided an update on the cold storage facility planned for Westport. The company is in the last stages of finalizing the long-term financing for the project. Project Manager Hari Sharma of Berglund Schmidt stated that the project is in its final stage of permit approval with the City. It is hoped that project construction will start in 6-8 weeks. Ocean Gold anticipates having the facility partially operational by September. Harbor Alternate Living Association (HALA) Activity Report HALA Executive Director William Schmauss gave a brief description of the growth in the organization’s activity since moving into the Port’s facility two years ago. The recent addition to their lease of the lower floor of the facility will allow for installation of a fitness center for their clients, increasing activity even more. Harbor Resort Properties, Inc. Condo Project Update Desireé Dodson said that the 25-unit condo project, The Point at Westport, located adjacent to the Westport Marina, is scheduled to be completed this summer. Bowerman National Wildlife Refuge 2007 Shorebird Festival Diane Souron highlighted the events scheduled at the 2007 Shorebird Festival during April 27-29. The Port is a sponsor of the festival, which brings people together from around the world to witness the annual shorebird migration. T4 Crane Demolition Status Ed McCullough reported on the demolition of the two level-luffing cranes located at Terminal No. 4. The Port has been pleased with the cleanliness and safety of the operation conducted by the purchaser. The upstream crane was used to take apart the downstream crane. A portable crane is being brought in to dissect the remaining 40-year old crane. The new owner is scrapping the metal and selling off various components (diesel engines, electric motors, air compressors, etc.). Vessel Activity Leonard Barnes reported that AGP expects another vessel to load in mid-June at the Terminal 2 facility. Public Comment Desireé Dodson of the Westport City Council announced that the PUD is replacing power poles along Montesano Street in Westport. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson outlined the planned scope of work for 2007 repairs to the Jet Array System. $400,000 has been included in the Port’s capital budget for this phase of the rehabilitation project. Motion to authorize the Executive Director to proceed with the 2007 renovation work to the Jet Array System was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Action Item No. 2 Mike Johnson presented the bid results of Contract No. 1563, T-4 Jet Array Painting 2007. Out of the two bids received, HJ Benjamin Co. was apparent low bidder at $143,000, plus sales tax. Motion to authorize the Executive Director to award Contract No. 1563, T-4 Jet Array Painting 2007 to HJ Benjamin Co. was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Action Item No. 3 Leonard Barnes presented a new lease with Viking Automatic Sprinkler Company for 564 square feet of warehouse space in the Port’s main office building. The previous lease has expired. Motion to authorize the Executive Director to enter into Lease Agreement No. 1043 with Viking Automatic Sprinkler Company was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Action Item No. 4 Leonard Barnes reported that Michels Power, a division of Michels Corporation, has requested to rent the lot between Kings Restaurant and Jetty Haul Road in Westport. The land would be used for storage of material and equipment during their work on the 2.2 miles of highline pole change-outs and wire upgrades along Westport’s Montesano Street. Motion to authorize the Executive Director to enter into Rental Agreement No. 1044 with Michels Power was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Action Item No. 5 Leonard Barnes stated that Paneltech International, LLC would like to amend Lease No. 947 to add one additional year to their option renewal period. Motion to authorize the Executive Director to enter into Second Amendment of Lease Agreement No. 947 with Paneltech International, LLC was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Action Item No. 6 Mike Johnson requested approval to call for bids on Port Contract No. 1567, Industrial Road, Rail Crossing Signal System at West First Street. The project estimate is $350,000 of which $250,000 has been committed by the Grays Harbor County Commissioners with a .08 Funds Grant. $75,000 will be provided by Imperium Grays Harbor and the remaining $25,000 will come from Port funds. Motion to authorize the Executive Director to Call for Bids on Contract No. 1567, Industrial Road, Rail Crossing Signal System at West First Street was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution 2676 Gary Nelson presented a proposal to amend the Grays Harbor Pilotage Tariff as follows: • Increase all pilotage fees 3.0% for all terminals, except the pension and transportation fees per assignment. • Amend the “pension fee” from $171 to $174 per assignment, as recommended by the Puget South Pilots Association, who administers the Grays Harbor pension funds for eligible Grays Harbor pilot retirees with service credit prior to October 2001. Motion to adopt Resolution No. 2676 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 Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution 2682 Mike Johnson requested approval to submit a funding application to the Grays Harbor County Surface Transportation Program (GHSTP) for Phase 1 pre-engineering and environmental documentation work of the Industrial Road Upgrade Project. The funding request is for $476,000. The Port’s required local match would be $84,000. Motion to adopt Resolution No. 2682 authorizing the Executive Director to make application to the GHSTP for the Port Industrial Road Upgrade Project was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution 2683 This item was pulled from the agenda. Resolution 2684 Gary Nelson presented a proposal to request the Washington State Department of Retirement Systems Deferred Compensation Program (DCP) to allow participation in the State DCP program by Port employees. This would give employees an additional deferred compensation plan option, as recommended by an Ad-Hoc Port Employee Advisory Committee. Motion to adopt Resolution No. 2684 authorizing a request to be made to Washington State Department of Retirement Systems Deferred Compensation Program (DCP) to allow participation in the State DCP program by Port employees was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Public Comment None NEW BUSINESS: Motion was made by Commissioner Pinnick and seconded by Commissioner Caldwell to excuse the absence of Commissioner Thompson who was unavailable due to personal reasons. Motion passed with all Commissioners in favor. Leonard Barnes reported that CCS, a division of PNE Corp., a.k.a. Cowlitz Clean Sweep, has recently contracted with Imperium Grays Harbor to provide environmental emergency response services during loading and off-loading of vessels at T1 and/or T2. CCS requires land near T1 for a container to store spill response equipment and dock space at T1 for a 28-foot spill response boat. Motion to authorize the Executive Director to enter into Rental Agreement No. 1046 with CCS, a division of PNE Corp. was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Leonard Barnes stated that JK Lumber would like to lease land from the Port upon which to mill standard lumber and custom orders. Motion to authorize the Executive Director to enter into Rental Agreement No. 1047 with JK Lumber was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Gary Nelson announced that Commissioner Pinnick would be attending an alternative fuels roundtable at the Imperium Renewables plant in Seattle on behalf of the Port. The kick-off meetings for the Westport Boat Basin Master Plan are scheduled for Wednesday, April 18 in Westport at the Maritime Museum. The Port’s consultant, Reid Middleton will meet with Port staff, the Advisory Committee and the Community. The Community Meeting is scheduled for 6 p.m. that evening. A motion was made by Commissioner Pinnick and seconded by Commissioner Caldwell to reschedule the Regular May 2007 Commission Meeting from May 8 to Thursday, May 10 at 9 a.m. at the Port’s offices, due to schedule conflicts. Motion passed with all Commissioners in favor. Appropriate notices will be posted and sent to the newspaper and radio stations regarding the change in meeting date. Jerry Hern introduced himself and informed the Commission that he has recently made an offer to purchase Port property on behalf of a corporation. The business wants to acquire a fairly large amount of industrial land on a deep-water channel with rail access. There being no further business to come before the Commission, the Regular Meeting recessed at 10:59 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 1:00 p.m. The Executive Session ended at 1:00 p.m. and the Regular Meeting adjourned at that time.