COMMISSION MEETING October 9, 2007 The Port of Grays Harbor Commission Meeting for October 9, 2007 was called to order at 9:03 a.m. Leonard Barnes 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 Mary Nelson - Director of Finance & Administration Leonard Barnes - Deputy Executive Director Lisa Benn - Accounting Manager Mike Johnson - Contracts Administrator Seth Taylor - Marine Terminals Manager Robin Leraas - Westport Marina Manager Diane Souron - Business & Trade Development Asst. Ken Rausch - Marina Operations Manager VISITORS Mary Riley - Grays Harbor Grannies Steven Freiderich - The Daily World Linda Orgel - Friends of Grays Harbor Vicki Cummings - GH Council of Governments Theressa Julius - GH Council of Governments Julia Gibb - GH Council of Governments Michael Tracy - GH Economic Development Council Hari Sharma - Berglund Schmidt & Associates Irina Makgrow - HDR Engineering Barb Morrison - HDR Engineering Deanna Gregory - K&L Gates Randy Lewis - City of Westport Wes Brosman - Private Citizen Judy Sinclair - Private Citizen Items discussed and actions 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 September 11, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 61 through 65 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 September 20, 2007 and October 5, 2007, and General Disbursement Vouchers No. 69770 through and including No. 69926 for payment in the amount of $610,580.00. REPORTS: Innovation Partnership Zone (IPZ) Gary Nelson announced that the Port, in partnership with the Grays Harbor Sustainable Industries Team, has been notified that Port of Grays Harbor Foreign-Trade Zone Site #1 had been designated as an IPZ. Additionally, the Grays Harbor IPZ grant request for construction of an R&D lab to support our local sustainable industries has been approved in the amount of $1 million. IPZ designation is effective October 1, 2007 and is good for four years. The Port shall fulfill the role of IPZ administrator. Service Agreement for 2008 Michael Tracy, Executive Director of the Grays Harbor Economic Development Council (EDC), briefed the Commission on EDC activities in 2007 and its proposed funding level by the Port in 2008. Vicki Cummings, Executive Director of the Grays Harbor Council of Governments (COG), described activities at COG during 2007 and outlined some of the goals as well as the member participation levels for 2008. City of Westport: Parking Plan & Airport Master Plan Westport City Administrator Randy Lewis presented overviews of the Westport Marina Parking and Westport Airport Master Plans. The Port participated in the studies as both a stakeholder and funding partner. Recommended City of Westport Code Revisions outlined in the Parking Study would help to reserve sufficient land area for both buildings and parking areas in the Marina District. Westport Marina Summer Activity Report Westport Marina Manager Robin Leraas and Marina Operations Manager Ken Rausch provided a PowerPoint presentation on the 2007 summer Marina activities. The 4-man summer crew was able to accomplish many projects including painting, pressure washing, and dock maintenance on every float. The Marina experienced a 10% increase in transient boating revenues over the previous summer, attributed mainly to better fishing opportunities. Westport Marina Haul-Out Project Update Accounting Manager Lisa Benn briefly reported that the biological evaluation (BE) for the project was nearing completion. The permit applications have been drafted and are just awaiting the final BE. As for the Boat Basin Master Plan, the Demand Study is nearing completion as well. Once BST Associates submits this work, Reid Middleton can begin drafting layout alternatives based upon the anticipated future demand for moorage in the Westport Marina. Those layouts would then be the focus of the next Advisory Committee Meeting and a Community Meeting. Critical Area Ordinances & Port Zoned Area Irina Makgrow, Critial Area Ordinance Project Manager with HDR Engineering, distributed information concerning critical area ordinance (CAO) requirements cities must adopt. New CAO development regulations mean a new local permit process, in addition to the existing state and federal CAO permit processes. Aberdeen, Hoquiam and Grays Harbor County must each adopt a CAO by December 1, 2008. Westport has until December 1, 2010. Vessel Activity Leonard Barnes reported that AGP has several vessels scheduled to load before the end of the year taking on more than 140,000 MT of product. The Research Vessel Atlantis took on stores recently at T-4. For IGH, the Chembulk Barcelona will be offloading 10,000 MT of canola oil later this month and then loading 5,000 MT of biofuels. Another vessel is anticipated in late-November bringing in more canola oil for IGH. Public Comment Hari Sharma of Berglund Schmidt & Assoc. in Aberdeen asked of Irina Makgrow if the federal and state regulators of CAO will delegate authority to the local level? Response – No, there will now be a local CAO permitting process in addition to the existing state permit and federal permit processes. Linda Orgel, 1128 SR 105, Aberdeen – Ms. Orgel expressed her concern at the Port’s reception to the local CAO requirements described during the meeting. Wes Brosman of Aberdeen expressed his concern with the status of the Port’s compliance with ADA regulations. Judy Sinclair of Hoquiam, who lives near the Hoquiam River, expressed her concern about a recent trailer park addition and zoning changes that have occurred near her home. Ms. Sinclair was referred to the City of Hoquiam as it is in charge of the area’s zoning. ACTION/RESOLUTION ITEMS: Action Item No. 1 Leoanrd Barnes reported that in order for Ocean Cold to get utilities to their cold storage construction site, they will need to cross the Port of Grays Harbor’s and City of Westport’s property. Once installed, inspected and approved by the City of Westport, ownership of the utilities shall be turned over to the City who will then be responsible for the maintenance of the utilities. Motion to authorize the Executive Director to negotiate and enter into an Agreement for a Utility Easement with Ocean Cold, LLC was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 2 Mary Nelson, Director of Finance and Administration, provided a PowerPoint presentation regarding the 2008 Preliminary Budget, as prepared by staff. Moderate growth is expected in Industrial Properties and Westport Marina revenues. A conservative budget was prepared for marine terminals based on growth in bulk commodities (AGP and IGH), 50 vessels, a business development focus, and enhancements to the marketing plan. No new positions will be added, however a currently vacant position will be filled. All departments, including airport and environmental departments, have included repair/maintenance projects previously deferred. Motion was made by Commissioner Pinnick and seconded by Commissioner Thompson to accept the Preliminary Budget and make it available to the public. Motion passed with all Commissioners in favor. A public hearing on the budget will be held November 13, 2007 during the Port Commission’s regular meeting. The Port Commission must adopt and file a final budget with the Grays Harbor County Auditor by early December. The Regular Meeting recessed at 11:28 a.m. for a Special Board Meeting of the Industrial Development Corporation of the Port of Grays Harbor. The Regular Meeting reconvened at 11:36 a.m. Resolution 2693 Director of Finance and Administration Mary Nelson reported that a Special Meeting of the Port of Grays Harbor Industrial Development Corporation (IDC) was held on October 9, 2007, during which Resolution No. 30 was adopted by the IDC Board of Directors Authorizing the Issuance and Sale of $10,000,000 in Non-Recourse Revenue Bonds, Series 2007 to finance the acquisition and upgrading of a veneer plant by the Murphy Company. The process to issue the bonds includes several steps, with the next step calling for the Port of Grays Harbor Port Commission to consider and approve the IDC’s Resolution No. 30. Motion to adopt Resolution No. 2693: A Resolution of the Port Commission of the Port of Grays Harbor, Approving the Issuance by the IDC of Its Variable Rate Demand Industrial Development Revenue Bonds (Murphy Company Project) Series 2007 in the Aggregate Principal Amount of Not to Exceed $10,000,000 and Approving Resolution No. 30 of the Board of Directors of the Industrial Development Corporation of the Port of Grays Harbor Adopted on October 9, 2007 was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution Adopted. Public Comment Randy Lewis, Westport City Administrator, suggested that should a change occur in the 2008 budget, the Port consider accomplishing the next phase of the Westport Bankline Reconstruction Project next year rather than postponing the project until 2009. In conjunction with the project, the City of Westport will be accomplishing utility upgrades. NEW BUSINESS: Gary Nelson announced that on October 10, the Port will host a round table discussion with Charlie Earl, Executive Director of the State Board for Community and Technical Colleges. Mr. Earl is interested in hearing from employers in the manufacturing, industrial and mill industries on their views of the biggest impediments to job growth and economic development. Mr. Earl is a member of Governor Chris Gregoire's Cabinet and will be sharing information with the Governor as she prepares for community meetings and the upcoming legislative session. Mary Nelson reported that the Port’s insurance policies all renewed on October 1. Liability coverage additions were made at reduced premiums. Premiums on property coverage still remain a challenge. The Regular Meeting recessed at 11:43 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 2 hours. The Executive Session ended at 1:45 p.m., and the Regular Meeting adjourned at that time.