COMMISSION MEETING August 11, 2009 The Port of Grays Harbor Commission Meeting for August 11, 2009 was called to order at 9:14 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 Jack Thompson - Commissioner Chuck Caldwell - 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 - Westport Marina Manager Diane Souron - Business & Trade Development Asst. VISITORS Brian Pernula - Wild West Seafood Irina Makarow - HDR Engineering Billy Swor - ILWU Local No. 24 Jeff Jewell - ILWU Local No. 24 Paul Toste - F/V Adventurous Fred Goheen - Jones Stevedoring Company Steve Wilcox - Wilcox & Flegel Oil Whitey Forsman - Washington Crab Producers John Martinson - Airport user Doug Cornman - Westport Seafood 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 July 14, 2009, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 210 through 216 inclusive. 2. By motion made by Commission Thompson, seconded by Commissioner Caldwell and unanimously approved, the Commission adopted the Minutes of the July 29, 2009, Special Commission Meeting as recorded in Minutes Book No. 16, on pages 217 through 220 inclusive. VOUCHERS: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Thompson and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued July 20, 2009 and August 5, 2009, and General Disbursement Vouchers No. 73674 through and including No. 73835 for payment in the amount of $1,420,592.76. REPORTS: Westport Marina Public Hoist Gary Nelson provided an update on one of the most frequently requested services at the Westport Marina: a public hoist. Staff has surveyed like facilities on the Coast and in Puget Sound, gathering information on design, operation and rate structure. The first challenge is finding a suitable space within the marina. The most cost effective approach would be to utilize an existing dock that has good water and truck access. The most expensive alternative would be to build a facility for that specific use. Staff will continue to work with tenants that have hoists on their leaseholds to improve consistency of rates and access as part of their lease negotiations. Staff will also continue to work towards finding a suitable location for a public hoist within the Westport Marina. Commissioner Pinnick asked that a list be compiled of hoists that are on Port property versus those on private property. Commissioner Pinnick verified with staff that the Port will soon be negotiating with tenants of expiring dock leases in Westport and directed staff to keep this issue in mind during those discussions. Vessel Activity Leonard Barnes reported the Port loaded two Ro-Ro vessels at Terminal 4 during July: Pasha’s M/V Jean Anne & Partner Shipping’s M/V Positive Passion. A log ship arrived in late-July and loaded 2.2 million board feet, finishing August 4. Willis Enterprises has had two chip barges load at Terminal 3 in early-August and is expecting three more before the month is over. An AGP vessel is scheduled to load soybean meal and Partner Shipping will have a vessel call in August. Two AGP vessels are already on the books for September and Willis has three chip barges scheduled. Commissioner Thompson inquired about repairs to a vessel while on berth, accomplished by company outside of the area. He was interested if any local vendors had been contacted. Leonard Barnes responded that local companies who, in the past, have done this type of repair work were contacted, but none had renewed their insurance for performing over-water work. Public Comment John Martinson, a local, independent business man that has been flying in and out of Bowerman Field for more than 30 years, expressed his concern with the height of the proposed crane on the Willis leasehold near the airport. He feels it is important to keep the airport approach minimums as low as possible to encourage corporate jet traffic. Mr. Martinson would like to work with Port staff to strategize how to develop the airport further and increase its use. Paul Toste, a commercial fisherman, stated that a $3 million dollar federal grant for crab pot retrieval efforts originally slated for the Westport area was lost and awarded to Columbia River facilities because there is no public hoist in Westport. Doug Cornman, Westport Seafood Exchange, reported that Westport has 15 hoists controlled by various seafood buyers/processors and none of them have ever said “no” to lifting gear and equipment to/from a vessel. He objects to live crab buyers outside the area coming in to Westport in the winter time, allegedly not complying with local business laws, and competing with established companies that do buy Westport Business Licenses. Mr. Cornman also objected to the Port’s leasing of a berth to a couple of charter operators for anchovy pens. He believes this will take business away from him as a bait seller and that the Port is throwing local leaseholders out by allowing this activity. Brian Pernula, Wild West Seafood, Olympia, informed the gathering that he is a crab buyer that comes to the Marina during the season and he does have a Westport Business License. He encouraged the Port not to lose site of the fact that the fishermen of Westport want independence to be able to sell their product to whomever they want. He believes cannery owners/hoist owners are worried about losing their control over the fishermen. Billy Swor, ILWU Local #24, Aberdeen, commented about the positive things going on at the Port and wanted to convey publicly that the relationship between the longshore and the Port is at a very high level. Communication is very good with Port staff. The people of this community look to the Port for economic stimulus of the area. The Local #24 is in complete support of Port Staff and the compensation they receive. REPORTS (cont.): Westport Marina Fuel Transfer Services Leonard Barnes introduced Steve Wilcox of Wilcox & Flegel Oil. This petroleum distribution company has been in business for 57 years and has expressed an interest in expanding its operations into Westport for mobile fueling of vessels. Mr. Wilcox provided a slide show to acquaint the Port with their company. He explained that they would partner with Cowlitz Clean Sweep to provide fueling operations over the RPMM dock located at Firecracker Point. Mr. Barnes acknowledged that before discussion goes any further, staff will need to review the terms of the “Use” clause in the lease it has with RPMM for the facility. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that plans, specifications, and engineering provided by Berger/ABAM Engineers, Inc. is nearing completion for enhancements to Terminal No. 1. The existing berth and terminal will be enhanced to allow the mooring of ocean-going vessels and barges. The dock will be extended 50 feet off-shore and additional breasting and mooring dolphins will be constructed. The berth will be dredged to –43 MLLW to allow access to these larger vessels. Funding for the project will come from a combination of State JDF grant, CERB grant/loan, and local matching funds provided by Westway Terminals, Imperium Grays Harbor and the Port’s Capital Budget. Gary Nelson informed the Commission that agencies are working hard on the permitting so the Port can get construction underway this fall. Mr. Nelson applauded the foresight of the Commission to approve pursuing permitting efforts early on in development of the project. Motion to authorize the Executive Director to Call for Bids on Contract No. 1607, Terminal No. 1 Enhancement Project was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Robin Leraas presented a proposed schedule of monthly transient moorage fees for the Westport Marina. At it’s July meeting, Commissioners approved adjusting the daily transient moorage fees effective August 1, 2009. The current rates have been in effect since 1992 and no longer reflect the actual costs associated with operating and maintaining the marina, nor do they address the current market conditions for similar marina facilities. Motion to Amend the Westport Marina Tariff No. 58-A by revising the Marina’s monthly transient moorage rates as proposed effective September 1, 2009 was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Public Comment None NEW BUSINESS: Gary Nelson reported that appropriate State and Federal transportation grant funding notices had been received mid-July concerning the Port Industrial Road Project and that the project was moving forward. Grays Harbor PUD was able to quickly dispatch crews to relocate utility lines and the project’s construction bid was awarded at a Special Meeting of the Commission on July 29. A motion was made by Commissioner Thompson to direct Port Staff to prepare a letter to the Grays Harbor Public Utility District thanking them for their financial commitment and timely response with utility line relocations that will help insure the project is completed this year. Commissioner Caldwell seconded motion. Motion passed unanimously with all Commissioners in favor. WORKSHOP: 2nd Quarter 2009 Financial Review Director of Finance & Administration, Mary Nelson, provided a PowerPoint presentation overview of the Port’s Year-to-Date activity and how it relates to the 2009 Budget. Overall, revenues are ahead of budget by 6% and expenses are 4% lower than projections. Because of the increase in Marine Terminal shipping activities this year with Pasha, Partner Shipping & log exporter Dkorum, Inc., the following changes are being made to budgeted net revenue projections: ß Marine Terminals – Increase Adopted Budget by $493,000 Commissioners discussed property taxes and how they are important for long-term capital investments. By strategically using tax funding for capital projects, the Port has been able to leverage millions more in private investment and grant opportunities. There being no further business to come before the Commission, the Regular Meeting recessed at 10:42 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 one-half hour. The Executive Session ended at 11:15 a.m. and the Regular Meeting adjourned at that time.