COMMISSION MEETING MINUTES June 12, 2007 The Port of Grays Harbor Commission Meeting for June 12, 2007 was called to order at 9:01 a.m. Mike Johnson, 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 Diane Souron - Business & Trade Development Asst. VISITORS Vicki Cummings - GH Council of Governments Karen McLellan - Rusty Scupper’s Pirate Daze Pete Colean - Rusty Scupper’s Pirate Daze Bill Lindstrom - The Daily World Paula Horton - The Daily World Mary Riley - Grays Harbor Grannies Melissa Montgomery - WA Dept. of Natural Resources Don Olmstad - WA Dept. of Natural Resources 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 May 10, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 29 through 37 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 May 18, 2007 and June 5, 2007, and General Disbursement Vouchers No. 69089 through and including No. 69314 for payment in the amount of $833,091.86. REPORTS: Rusty Scupper’s Pirate Daze Karen McLellan & Pete Colean briefed the Commission on the 2007 Rusty Scupper’s Pirate Daze set for June 22-24 in Westport. The event has grown in popularity since its inception 4 years ago. Approximately 7,000-10,000 visitors are expected to attend this year. Commissioner Pinnick will be participating on behalf of the Port in the Welcoming Ceremony set for Saturday, June 23. Westport Marina Derelict Vessel Update Lisa Benn reported that the Port of Grays Harbor had recently been successful in disposing of four derelict vessels at the Westport Marina utilizing funding from Washington State’s Derelict Vessel Removal Program (DVRP). Melissa Montgomery from the Dept. of Natural Resources was introduced as the DVRP Coordinator. She provided a PowerPoint presentation about the Program and talked of how local entities can take advantage of this resource to dispose of derelict vessels located in the waters of Washington State. Surface Transportation Program (STP) Funding Vicki Cummings from the Grays Harbor Council of Governments provided an overview of the STP grant process and commended Contracts Administrator Mike Johnson for submitting an exemplary application on behalf of the Port. The Port’s project ranked high on the list and $476,000 of funding has been approved to accomplish the Preliminary Design and Engineering of the Port Industrial Road Improvements outlined in the Industrial Road Strategic Analysis. Vessel Activity Leonard Barnes reported that May/early-June has been a very busy time for the Port’s Marine Terminal operations with several ship calls including: • Military vessel CAPE HENRY • 2 Inbound shipments for Imperium Grays Harbor (IGH) • 4 Outbound shipments for IGH • INDUSTRIAL DAWN loaded rocket motors headed for Japan • BRIGHT STATE loaded AGP soy So far this year, the Port has handled five AGP vessels and seven IGH vessels at T2, and two ships at T4 Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Lisa Benn briefly described the history of the Charter Office Moorage Agreement and informed the Commission that nine charter offices wished to enter into another 3-year agreement with the Port, beginning July 1, 2007. Motion to authorize the Executive Director to enter into Charter Office Agreements for a 3-year term was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 2 Leonard Barnes reported that Ocean Gold Seafoods, Inc. have asked to rent part of the Westport parking lot across from the Marina Office for employee parking and gear storage. Motion to authorize the Executive Director to enter into Rental Agreement No. 1048 with Ocean Gold Seafoods, Inc. was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 3 Mike Johnson informed the Commission that Les Schwab was the only bidder on the tire acquisition and supply contract. They are the Port’s current supplier of this service. Motion to authorize the Executive Director to award Port of Grays Harbor Contract No. 1568, Tire Acquisition and Repair, to Les Schwab Tire Center in the amount of $124,424.81 was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution 2685 Vicki Cummings, Executive Director of the Grays Harbor Council of Governments, presented the Port’s Six-Year Transportation Improvement Program for 2008 to 2013 (TIP) to the Commission for consideration. In order to secure state and federal funding for transportation projects, a public entity must have such projects included in a 6-Year TIP, adopted and updated annually. Motion to adopt Resolution No. 2685: Adoption of the Port of Grays Harbor Six Year Transportation Improvement Program 2008-2013 was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution Adopted. Resolution 2686 Mike Johnson reported that work done under Contract No. 1556, Viewing Platform Repairs, by Quigg Bros., Inc. has been completed. The contract provided for repairing the damage incurred during the February 4, 2006 storm. Motion to adopt Resolution No. 2686 accepting the work done under Contract No. 1556 by Quigg Bros., Inc. was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution Adopted. Resolution 2687 Mary Nelson informed the Commission that the Washington State Community Economic Revitalization Board (CERB) has approved the Port’s grant application for $25,000 in funding of a Sustainable Industries Innovation Facility Feasibility Study. Motion to adopt Resolution No. 2687 accepting the terms and conditions set forth by the Washington State CERB in its Offer of Financial Aid to the Port of Grays Harbor for an Economic Impact Feasibility Study was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution Adopted. Public Comment None NEW BUSINESS: Executive Director Gary Nelson announced that the Washington State Pilotage Commission would hold a Public Hearing on the Grays Harbor Pilotage Tariff proposed changes on June 14, 2007. Mary Nelson will be representing the Port at the Hearing. Mr. Nelson and Commission Pinnick will be attending the Coastal Communities quarterly meeting on June 14 at the Port’s offices. Mary Nelson reported that the Port’s Bond Counsel, Cynthia Weed, has made preliminary inquiries about issuance of Industrial Development Corporation (IDC) bonds for a potential user. Should this proceed further, there would need to be a special meeting of the IDC called to consider the matter. Mr. Nelson announced that Seth Taylor has been offered and has accepted the position of Marine Terminals Manager with the Port. He will start July 2. Commissioner Thompson commended the Port’s Facilities Maintenance Crew for the outstanding job in resolving a breakdown at the AGP facility during ship loading recently. There being no further business to come before the Commission, the Regular Meeting recessed at 10:22 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 12:45 p.m. after one extension had been announced, and the Regular Meeting adjourned at that time.