COMMISSION MEETING MINUTES May 10, 2007 The Port of Grays Harbor Commission Meeting for May 10, 2007 was called to order at 9:00 a.m. Robin Leraas, Westport Marina Manager, 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 Jack Thompson - 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 - Marina Manager Ken Rausch - Marina Operations Manager Diane Souron - Business & Trade Development Asst. Shawn Madrid - Shop Superintendent VISITORS Desireé Dodson - Westport City Council Mark Dodson - Harbor Resort Properties, Inc. Bill Simpson - City of Aberdeen Brendan Mahaffey - RPMM Jim Criel - ASN Billy Swor - ILWU Local #24 Bill Lindstrom - The Daily World Wes Brosman - Friends of Grays Harbor Trey Smith - GPOW Mary Riley - Grays Harbor Grannies Cathy Colley - Grays Harbor Republicans Rex Andersen - Private Citizen Kirsten Anderson - Private Citizen Dave Forbes - Private Citizen Molly Gibbs - Private Citizen Sandy Mayes - Private Citizen Candace Milne - Private Citizen Linda Orgel - Private Citizen James Rutz - Private Citizen Francis Schultz - Private Citizen John Schultz - Private Citizen Judy Sinclair - Private Citizen Della Smith - Private Citizen Connie Stullick - Private Citizen Stu White - Private Citizen Items discussed and action taken where required are as follows: MINUTES: 1. By motion made by Commissioner Thompson, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of the April 10, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 21 through 28 inclusive. VOUCHERS: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously adopted, the Commission approved for payment those Payroll Vouchers issued April 20, 2007 and May 4, 2007, and General Disbursement Vouchers No. 68942 through and including No. 69088 for payment in the amount of $493,669.73. REPORTS: Harbor Resort Properties, Inc. Condo Project Update Mark Dodson of Harbor Resort Properties reported that The Point at Westport Harbor condominium project construction is “On schedule and on time.” The first occupant is expected to move in August 2007. Mr. Dodson provided a slide show of the construction site progress and views. RPMM Facility Update Brendan Mahaffey of RPMM informed the Commission that the company plans to submit permit applications within the next few weeks. Since they began leasing the Firecracker Point land from the Port two years ago, they have been working with a consultant on the permits, especially on the substantial mitigation requirements. The company intends to be in operation prior to the next crab season. Hungry Whale Remediation Site Diane Souron updated Commission and staff on the status of the remediation site. The Department of Ecology has approved grant funding to complete a remedial investigation/feasibility study for the site. The first phase of the work will be the remedial investigation, which began in late-April with a pre-field investigation and initiation of a push-probe and test pit. Westport Marina Activities Update Westport Marina Manager Robin Leraas and Marina Operations Manager Ken Rausch provided a PowerPoint presentation for the Commission on the upcoming summer activities at the Westport Marina, including a maintenance preview. A 4-person crew will be hired for the summer to accomplish dock repairs, including tightening of walers and through rods and replacing coverboards, rub boards, cleat replacements as needed, and utility line maintenance. The docks will also be cleaned and pressure washed. The recently rehabilitated Viewing Platform will be stained and sealed. The recreational halibut season opened May 1 and closed after only 6 days of fishing. The recreational salmon season will open Sunday, July 1. The quota for coho salmon is almost double last year’s numbers, but the king guideline is reduced about 50% from 2006. Marina advertising will again emphasize saving fuel costs by mooring boats for longer terms at the marina rather than trailering them back and forth. Legislative Report Executive Director declared the 2007 Legislative Session a success for the Port of Grays Harbor. The Port’s agenda was focused on rail enhancements service the Imperium facility, increasing and extending the Rural Economic funding through the CTED .08 program, and funding of an oil processing facility for raw feedstocks for the bio-fuel industry. Vessel Activity Leonard Barnes reported that several vessels are due to visit the Port during the months of May & June: • Military vessel CAPE HENRY, which loaded supplies and equipment, bound for Iraq • VIRGIN GORDA & MATTHEOS to discharge bio-fuel at T2 • 3 Outbound shipments of bio-fuel aboard the CHEMICAL SPRINTER • INDUSTRIAL DAWN will load rocket motors headed for Japan • An AGP vessel will load soy meal Public Comment The following citizens spoke against the Port of Grays Harbor’s facilities being used to ship military cargo to supply the war in Iraq via the military vessel CAPE HENRY in early May: Candace Milne of Humptulips Kirsten Anderson of Aberdeen, representing the group “Women Standing” Molly Gibbs of Olympia Stu White of Hoquiam Mary Riley of Hoquiam Connie Stullick of Aberdeen Frank Schultz of Hoquiam Sandy Mayes of Olympia John Schultz of Grays Harbor Judy Sinclair of Hoquiam Several people requested that the Port seek public input in a public forum before any further military shipments bound for Iraq are loaded in Grays Harbor. A suggestion was made to ask for an Advisory Vote on the November Ballot allowing the voters to choose whether or not they want military shipments to supply the war in Iraq to be loaded at the Port of Grays Harbor. A comment was made that if any of the shipment contained depleted uranium, this could be an environmental hazard. In addition, an unsigned Citizens’ Injunction to Halt the Shipment of Military Material Through the Publicly Funded Port of Grays Harbor for so Long as the Occupation of Iraq Continues was delivered to the Commission. The following citizens spoke in favor of the Port of Grays Harbor’s facilities being used to ship military cargo to supply the troops stationed in Iraq via the military vessel CAPE HENRY in early May: James Rutz of Hoquiam Dan Peterson of the ILWU Local No. 24 Billy Swor of the ILWU Local No. 24 Dave Forbes of Hoquiam expressed his appreciation of the upcoming upgrades to Bowerman Field Airport that are on the agenda. Wes Brosman of Aberdeen informed the Commission that this meeting was not accessible to those with hearing disabilities and thus not ADA compliant. He would like to work with the Port’s ADA Coordinator on this issue. Rex Andersen of Westport asked the Port to provide a letter of support for a request being made to the Washington State Parks Department for creation of a parking lot with a view of the ocean at the western terminus of Ocean Avenue in Westport. This request will further ask that the beach approach located at this site many years ago be maintained. State Parks will hold a final hearing on suggestions concerning South Beach state parks in August. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson outlined proposed Contract No. 1568 concerning the supply, installation and repair of tires. The current contract is due to expire at the end of May 2007. Motion to authorize the Executive Director to advertise Contact No. 1568, Tire Acquisition & Repair was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 2 Mike Johnson presented the bid results of Contract No. 1567, Industrial Road Rail Crossing Signal System at West First Street. Of the three bid packages sent out to contractors as requested, only one bid was received. Allpress and Moore was the sole bidder at $200,230.54, plus sales tax. Motion to authorize the Executive Director to award Contract No. 1567, Industrial Road Rail Crossing Signal System at West First Street to Allpress and Moore was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 3 Leonard Barnes outlined steps taken to solicit Requests for Qualifications for selection of a design and engineering service provider for Bowerman Field projects. Both federal and state airport funding agencies require the selection of a service provider be accomplished every five years. Several airport improvement and repair projects eligible for grants were identified in the recent review of airport services. Motion to authorize the Executive Director to accept Reid Middleton as the design and engineering service provider for Bowerman Field was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 4 Following up on the prior action, Diane Souron requested authorization to proceed with several airport projects, including design and engineering work. Reid Middleton has submitted an estimate of $579,116 for project work to be completed over the next two years. Motion to authorize the Executive Director to proceed with ILS/Tree Obstruction Phase 3, ILS Tree Removal, FAA Glide Slope Raising and Flight Check Reimbursable Agreement, Runway and Taxiway Striping and Crack Sealing Engineering, and Design and Construction for Electrical Building and Beacon was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 5 Leonard Barnes informed the Commission that the runway and taxiways at Bowerman Field Airport were last striped and seal-coated in 2002 and it is time to accomplish this work again. Funding for the project will come from the FAA Airport Improvement Program (95%) and WSDOT Airport Aid Grant (2.5%). The Port’s match is the remaining 2.5% or $3,750. Motion to authorize the Executive Director to Call for Bids on Port of Grays Harbor Contract No. 1569, Runway Striping and Crack Sealing at Bowerman Field was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution 2683 Mike Johnson reported that Quigg Brothers, Inc. had completed the work on the T-4 East Approach Piling Repair. The contract provided for refurbishing 96 steel H-pile by cleaning, sandblasting, installation of rebar, and encasement in concrete. Motion to adopt Resolution No. 2683 accepting the work done under Contract No. 1553 by Quigg Brothers, Inc. was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution Adopted. Public Comment Jim Criel, 315 Hill Road, Aberdeen – Mr. Criel expressed his appreciation to the Commission and Port staff on the airport improvement work that will be accomplished. All three Port Commissioners commended Gary Nelson, Leonard Barnes, Mary Nelson and the entire staff on the outstanding job done during the whole military shipment event. The demonstration of decorum, professionalism and work ethic throughout the process was noted and appreciated. Mr. Nelson and staff were thanked for carrying out the Port’s strategic plan by continually working to encourage more use of the deep-water channel. NEW BUSINESS: Executive Director Gary Nelson recognized the efforts of Senator Patty Murray in helping to secure $313,342 of security grant funding recently awarded to the Port of Grays Harbor by the Department of Homeland Security. Lisa Benn briefly described how 2007 Port Security Grant Funding was distributed amongst the nation’s ports. Mr. Nelson reported that he and the three Commissioners would be attending the WPPA Spring Meeting in Spokane mid-May. Mr. Nelson announced that Marine Terminal Manager, Ed McCullough, has decided to accept a federal railroad position and has given his notice to the Port. During his time with the Port, he has made great strides in T2 bulk loading facility efficiencies and will be missed by the staff. A job search has begun in order to fill the position left vacant with Mr. McCullough’s departure. Mr. Nelson informed the Commission that the Community Economic Revitalization Board (CERB) is scheduled to be in Grays Harbor on July 18 for a tour. Commissioner Pinnick thanked Diane Souron for all of her work on helping to make the Annual Shorebird Festival a success. There being no further business to come before the Commission, the Regular Meeting recessed at 11:04 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 reconvened at 1:19 p.m. for a 1st Quarter Financial Review Workshop. WORKSHOP: 1st Quarter 2007 Financial Review Director of Finance & Administration, Mary Nelson, provided a PowerPoint presentation overview of the Port’s Year-to-Date activity, how it compares to last year at this time and how it relates to the 2007 Budget. Based on 1st quarter results and additional information available, budget projections are being updated at this time by staff as follows: • $204,000 more in operating revenue • $3,000 more in operating expenses The Workshop ended at 1:48 p.m. and the Regular Meeting adjourned at that time.