COMMISSION MEETING August 14, 2007 The Port of Grays Harbor Commission Meeting for August 14, 2007 was called to order at 9:01 a.m. Mary Nelson 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 Steve Natwick - 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. Seth Taylor - Marine Terminals Manager Joseph Shay - History Intern VISITORS Richard Carroll - Ocean Gold Seafoods Greg Shaughnessy - Ocean Gold Seafoods David Quigg - Grays Harbor Paper Ron Pinnick - Grays Harbor Paper Bill Lindstrom - The Daily World Mary Riley - Grays Harbor Grannies Mike Abel - Imperium Grays Harbor Lisa Marthe - Imperium Grays Harbor Sid Watts - Imperium Grays Harbor Joe Stipic - Westport Shipyard Desireé Dodson - Westport City Council Brendan Mahaffey - RPMM 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 July 10, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 44 through 49 inclusive. 2. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes of the July 23, 2007, Special Commission Meeting as recorded in Minutes Book No. 16, on pages 50 through 52 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 July 20, 2007 and August 3, 2007, and General Disbursement Vouchers No. 69480 through and including No. 69627 for payment in the amount of $774,772.44. REPORTS: Hungry Whale Remediation Site Diane Souron reported on the results of groundwater testing. The Remedial Investigation Report will be done in November and a Cleanup Action Plan should be ready in December. RPMM Facility Update RPMM General Manager, Brendan Mahaffey reported that the permits for the offloading facility and dock at Firecracker Point are all in process and are expected to be in hand by the end of this year. Construction of the facility is anticipated to begin in early-spring 2008. RPMM plans to request a future amendment to their lease to include a processing building and ice house. Ocean Cold Storage Update Richard Carroll of Ocean Gold updated the Commission on the status of their cold storage facility project at Firecracker Point. They have financial commitments in place for the project with the intent to move forward as soon as possible. The 85,000 square foot facility planned will be used for processing of seafood, blast freezing and cold storage. Vision 2020 – Building a Sustainable Grays Harbor David Quigg and Ron Pinnick described the Vision 2020 Workshops that have taken place over the last year. Grays Harbor Vision 2020 Mission – “Our mission is to engage the community in building a sustainable and economically viable Grays Harbor that supports People, Planet and Profits.” Imperium Grays Harbor (IGH) Update Gary Nelson recognized the accomplishments of IGH and its staff in getting the biodiesel plant constructed and operational in a short amount of time. An engraved barometer/clock was presented to IGH General Manager Sid Watts by the Port commemorating the Grand Opening of the facility, taking place Wednesday, August 15, 2007. Vessel Activity Leonard Barnes reported there have been 22 vessel calls so far this year. AGP has booked three vessels for the last third of the year, expecting to load more than 120,000 MT of product. Public Comment Westport Councilperson Desireé Dodson stated that the Westport City Council would like to see park improvements made around the Westport Observation Tower. The City is willing to work with the Port to get the project going. Staff was directed to work with Ms. Dodson and the City in reviewing park design and developing a plan for improvements. Greg Shaughnessy of Ocean Gold Seafoods reported that the company is growing “phenomenally”. 50 million pounds of whiting have run through the Ocean Gold Seafoods plant in Westport so far, with another 80 million expected by year’s end. Ocean Gold is also planning to get more aggressive in processing sardines. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that one bid was received on Contract No. 1569, Runway Striping & Crack Sealing at Bowerman Field. Motion to award Contract No. 1569, Runway Striping & Crack Sealing to Apply-A-Line, Inc. in the amount of $238,165.56 (including sales tax) was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 2 Lisa Benn and Leonard Barnes briefly described a Westport Haul-Out Facility proposal that would include reconfiguration and structural upgrades of Floats 17 and 19, construction of two boat lift piers, a staging float, acquisition of a travel lift and upland development including relocation of utilities and paving upgrades. The project could serve the needs of the fishing and recreational fishing fleets and Westport Shipyard. Commissioner Thompson recused himself on this matter. Motion to authorize the Executive Director to proceed with pre-design work on the Westport Haul-Out Facility was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with two Commissioners in favor. Action Item No. 3 Leonard Barnes reported the agreement for lease of property for location of the Cow Point Reach Range Light with the U.S. Coast Guard is due to expire September 2007. Motion to authorize the Executive Director enter into Supplemental Lease Agreement with the U.S. Coast Guard and waive the $1 annual rent was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution 2690 Lisa Benn described the proposed Westport Boat Launch Floats Rehabilitation project. Partial funding could be available for the improvements via a Boating Facilities Program Grant from the Recreation & Conservation Office (RCO) (previously known as Interagency Committee for Outdoor Recreation). Motion to adopt Resolution No. 2690: Authorizing the Executive Director to Apply for Funding Assistance for a Boating Facilities Program Project to the RCO for Rehabilitation of the Westport Boat Launch Boarding Floats was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution Adopted. Public Comment None NEW BUSINESS: Gary Nelson reported that official notice from the Department of Homeland Security had been received concerning the award to the Port of Grays Harbor of Port Security Grant Program funding for security improvements to the Marine Terminal Complex. Leonard Barnes reported that progress had been made towards improving handicap access to the Port’s offices and meeting rooms. The Regular Meeting recessed at 11:00 a.m. The Board then went into Executive Session to consider the acquisition, 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 1:20 p.m., after one extension had been announced and the Regular Meeting reconvened at 1:28 p.m. for a 2nd Quarter Financial Review and Planning Workshop. WORKSHOP: 2nd Quarter 2007 Financial Review & Planning Workshop 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 and 2nd quarter results and additional information available, budget projections are being updated at this time by staff as follows: • $135,106 more in operating revenue • $267,876 less in operating expenses Discussion ensued between Commissioners and Staff concerning future opportunities of cargo movements through the marine terminals, land uses, navigation channel, and infrastructure funding. The Workshop recessed at 3:52 p.m. and the Regular Meeting adjourned at that time.