COMMISSION MEETING November 10, 2009 The Port of Grays Harbor Commission Meeting for November 10, 2009 was called to order at 9:06 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 Seth Taylor - Marine Terminal Manager Diane Souron - Business & Trade Development Asst. Shannon Anderson - Business & Trade Development Asst. Ken Rausch - Marina Operations Manager VISITORS Mason Skinner - HDR Engineering, Inc. Fred Goheen - Jones Stevedoring Company Whitey Forsman - Washington Crab Producers, Inc. Vicki Cummings - GH Council of Governments 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 October 13, 2009, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 1 through 11 inclusive. VOUCHERS: 1. By motion made by Commissioner Thompson, seconded by Commissioner Caldwell and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued October 20, 2009 and November 5, 2009, and General Disbursement Vouchers No. 74243 through and including No. 74380 for payment in the amount of $1,426,017.44. REPORTS: Service Agreements for 2010 Vicki Cummings, Executive Director of the Grays Harbor Council of Governments (COG), briefed the Commission on COG activities in 2009 and its proposed funding level by the Port in 2010. Commissioner Pinnick thanked Ms. Cummings and the COG on behalf of the Port for the leadership they have shown and the partnership philosophy they have with member organizations. T1 Enhancement Project Update Mike Johnson reported on the status of the three contracts the Port has concerning the T1 Berth Enhancement Project: • Dock construction and dredging contracts have been awarded and the contractors have submitted all required paperwork. • Power supply relocation for T1 is almost complete. Port is waiting on final permits before issuing the Notice to Proceed on both the dock construction and dredging contracts. Westport Marina Summer Activity Report Robin Leraas and Ken Rausch provided a slide show on the 2009 summer Marina activities. Transient moorage and launch ramp revenues increased over the previous summer due to good fishing, lower fuel prices, and extensive publicity in the spring to get the word out that fishing was open in Westport this summer. Port Industrial Road Improvement Project Status Mike Johnson reported that the contractor is recommending a shut down of the Port Industrial Road Improvement Project for the winter due to the onset of inclement weather. The final lay of asphalt, as well as pouring of concrete sidewalks and planting grasses and other vegetation for the bio-swale areas, will be undertaken in the spring (probably late-March/early-April, depending on weather) in order to achieve the best quality product. The contractor will finish the project in about 30 working days after they resume operations. WSDOT guidelines allow a winter shutdown and WSDOT has approved same for this project. The electrical subcontractor will continue to work on installation of the new street lighting, as this activity is not weather-dependent. Commissioner Pinnick asked who will decide when startup would occur? Mr. Johnson responded that it will be a combination of the determination of the Project’s Construction Engineer and when the asphalt supplier resumes operation of their plant in the spring. Commissioner Thompson inquired about the amount of work that has been accomplished to date and the amount of payment that has been made to the contractor? Response: The contractor has been paid $687,000 so far, with another approximately $1 million due to be paid shortly. The project is about 60-70% complete. Vessel Activity Leonard Barnes reported the Port has handled 34 ships and 10 barges year-to-date through October. Several vessels and barges were loaded during October. In November, the Port expects to load four AGP vessels, one IGH vessel, a log ship, three chip barges and a Ro-Ro ship. There are already five vessels anticipated for December, including Westway Terminal’s first ship at the beginning of the month delivering the liquid bulk product to their newly constructed storage tanks. Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Leonard Barnes reported that Washington Crab’s four leases along the Main Dock in Westport are due to expire December 31, 2009. Washington Crab has requested to enter into new leases. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement Nos. 1074, 1075, 1076 and 1077 with Washington Crab Producers, Inc. was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Commissioner Pinnick acknowledged that he had the pleasure of attending Washington Crab Producers’ 50th Anniversary Celebration and Memorial Dedication on October 30 in Westport on behalf of the Port. He commended Washington Crab on the wonderful celebration and moving dedication ceremony. Action Item No. 2 Mike Johnson informed the Commission that the Port’s petroleum products supply and delivery contract is due to expire on December 31, 2009. Motion to authorize the Executive Director to advertise and Call for Bids on Port of Grays Harbor Contract No. 1611, Petroleum Products Supply & Delivery, was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Recess of the Regular Commission Meeting was called at 9:54 a.m. and a Public Hearing on the 2010 Budget was opened. Public Hearing Mary Nelson presented the proposed 2010 Budget. The $16.5 million budget includes a Capital Improvement Program of $4 million and debt service payments of $1.5 million. It also includes a property tax levy of $0.33 per thousand of assessed value, down from $0.35 in 2009. The proposed levy reflects a 0.848% reduction in accordance with Referendum 47 and Initiative 747. Including new construction, the total levy is anticipated to be approximately $2,220,000, dedicated to financing capital improvements. Public Comment was solicited. No Public Comment was heard. The Public Hearing was closed and the Regular Meeting reconvened at 10:06 a.m. Resolution 2752 Mary Nelson, Director of Finance & Administration, introduced the property tax resolution that sets the 2009 Property Tax Levy for Collection in 2010. Staff is recommending adoption of a levy with a 0.848% decrease over the previous year’s levy. The anticipated collections total $2,220,000 and have been included in the Preliminary Budget. Motion to adopt Resolution No. 2752: Adoption of 2009 Property Tax Levy for Collection in 2010 was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted. Commissioner Thompson commented that the Port of Grays Harbor has the lowest property tax collection in Washington State amongst deep water shipping ports. Other ports collect millions more in property taxes and these are the ports Grays Harbor is competing against. Port Staff has done an outstanding job of operating this Port with a lot less resources than other organizations have. Commissioner Caldwell asked how a possible increase in new construction values could affect the Port’s property tax collections? Response: If new construction values increase, the amount the Port collects, applying the same levy rate, would increase revenues. Resolution 2753 Mary Nelson, Director of Finance & Administration, presented the Port’s 2010 Preliminary Budget for approval. Motion to adopt Resolution No. 2753: Adoption of 2010 Budget was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Commissioner Pinnick thanked Staff for their efforts in meeting the operational and financial objectives set by the Commission while keeping costs down. He is very proud of the Staff and the quality control of expenditures that has been achieved. Public Comment None NEW BUSINESS: Gary Nelson congratulated Stan Pinnick on his re-election for another 6-year term as a Port Commissioner. Mr. Pinnick will be sworn in to his second term in January 2010. Commissioner Chuck Caldwell and Executive Director Gary Nelson reported on their attendance to the recent AAPA Annual Convention held in Galveston, TX. There was a lot of discussion during the convention concerning reducing the carbon footprint of the port industry. Commissioner Caldwell found the conference enlightening as he had the opportunity to meet with individuals from ports all over the country and discuss challenges experienced by various ports. When he looks at what our Staff has accomplished compared with how other ports are functioning, he is very proud of the Port’s employees. Gary Nelson announced that Commissioners Thompson and Pinnick would be joining him at the WPPA Annual Meeting November 18-20 in Seattle. Commissioner Thompson, who is ending his fifth year on the WPPA Executive Board, reported that he has been asked to extend his service to the WPPA Executive Board one more year. Gary Nelson announced that there would be a Grand Opening for the Westway Terminal Company Bulk Facility and T1 Groundbreaking Ceremony on Tuesday, December 15 at 10:30 a.m. 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 1:22 p.m., after a one-hour extension had been announced, and the Regular Meeting adjourned at that time.