COMMISSION MEETING November 13, 2007 The Port of Grays Harbor Commission Meeting for November 13, 2007 was called to order at 9:05 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 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 Bill Lindstrom - The Daily World Wes Brosman - Private Citizen Bob Reynolds - Rey-Com 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 October 9, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 66 through 72 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 October 19, 2007 and November 5, 2007, and General Disbursement Vouchers No. 69927 through and including No. 70159 for payment in the amount of $1,515,201.33. REPORTS: Boat Launch Floats Project Update – RCO Grant Robin Leraas reported that the Port was successful in its application to the Recreation Conservation Office (RCO) for a Boating Facilities Program Grant to rehabilitate the boarding floats at the Westport Marina Launch Ramp. The project will include replacement of 18 float sections, replacement of all 16 swivel or hinge connections, replacement of the ramp transition surface with non-skid fiberglass grating and placement of timbers under the floats to provide a level surface upon which they can rest during lower tides. The improvements are scheduled to be in place prior to the May 1, 2008 sport halibut season opening. Vessel Activity Leonard Barnes reported that 32 vessels have visited the Port’s facilities so far this year. AGP has two more vessels scheduled before the end of the year and IGH is handling approximately a vessel per month at this time. Public Comment Wes Brosman of Aberdeen expressed his satisfaction with the progress of the Port’s compliance with ADA regulations. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that in mid-July, the Port’s contractor, Quigg Bros., Inc., found additional storm damage to Westport Marina’s Float 3 caused by the February 4, 2006 event. An additional 40 floats will need to be replaced at a cost of $245,915, plus sales tax. The Port’s insurance has agreed to cover the additional cost of repairs. Motion to authorize the Executive Director to award Change Order No. 2 for Contract No. 1557, Storm Damage Float Repairs, to Quigg Bros. Inc. in the amount of $245,915, plus sales tax was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. The Regular Meeting recessed at 9:24 a.m. for a Special Board Meeting of the Industrial Development Corporation of the Port of Grays Harbor. The Regular Meeting reconvened at 9:28 a.m. Recess of the Regular Commission Meeting was called at 9:28 a.m. and a Public Hearing on the 2008 Budget was opened. Public Hearing Mary Nelson presented the proposed 2008 Budget. Since the 2008 Preliminary Budget was presented, changes totaling $967 have been made. The budget includes a Capital Improvement Program of $18.2 million. It also includes a property tax levy of $0.38 per thousand of assessed value, down from $0.4268 in 2007. The proposed levy reflects a 1% increase in property tax receipts totaling $19,382, plus taxes from new construction, for a total levy of $2,030,663. Private Citizen Wes Brosman asked if the proposed 2008 budget included any military vessels? Port Response: No military vessels are included in the 2008 proposed budget. Mr. Brosman asked if the Port of Grays Harbor has received payment of charges for the military vessel visit earlier this year? Port Response: Yes, the Port has been compensated The Public Hearing was closed and the Regular Meeting reconvened at 9:46 a.m. Resolution 2695 Mary Nelson, Director of Finance & Administration, introduced the property tax resolution that sets the 2007 Property Tax Levy for Collection in 2008. Although the State Supreme Court recently overturned Initiative 747, staff is recommending adoption of a levy with only a 1% increase over the previous year’s levy. The anticipated collections total $2,030,663 and have been included in the Preliminary Budget. Legal Counsel Art Blauvelt recommended amending the Resolution as presented by removing reference to Initiative 747 from the document. Motion to amend proposed Resolution No. 2695: Adoption of 2007 Property Tax Levy for Collection in 2008 by removing the following wording from the third paragraph: “as most recently amended by Initiative 747 approved by the voters of the State of Washington on November 6, 2001” was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion Passed with all Commissioners in favor. Motion to adopt Resolution No. 2695: Adoption of 2007 Property Tax Levy for Collection in 2008, as amended, was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2696 Mary Nelson, Director of Finance & Administration, presented the Port’s 2008 Preliminary Budget for approval. Motion to adopt Resolution No. 2696: Adoption of 2008 Budget was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2694 Mike Johnson and Diane Souron informed the Commission that the runway striping and crack sealing work at Bowerman Field had been completed by the contractor under the terms of Contract No. 1569. Funding for the project is split as follows: FAA 95%, WSDOT-Aviation Division 2.5%, and Port of Grays Harbor 2.5%. Motion to adopt Resolution No. 2694: Completion and Acceptance of Contract No. 1569, Runway Striping and Crack Sealing at Bowerman Field was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2697 Mary Nelson reported that the Port has an opportunity to apply for CERB funding for construction of a research and development laboratory and incubator facility. If successful in the application, funding received would be combined with the recently awarded $1 million IPZ grant from CTED in order to construct the facility. Motion to adopt Resolution No. 2697: Authorizing the Executive Director to Submit a CERB Application for Funding for Construction of a Research and Development Laboratory and Incubator Facility was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment None NEW BUSINESS: Ken Rausch reported that Corps repairs to the breakwaters in Westport were progressing well. All boards are in place and rock is scheduled to be installed on the backside of Breakwater A. Marina staff and boaters have already noticed a big change in the amount of surge experienced in the Marina. Gary Nelson announced that Commissioners would be attending the Washington Public Ports Association Annual Meeting being held November 14-16 in Bellevue. Mary Nelson expressed appreciation to Bob Reynolds of Rey-Com for his assistance with improvements to the Port’s Commission Room sound system. Commissioner Thompson thanked Staff for their diligent work on accessibility issues and Marine Terminals Manager Seth Taylor for the outstanding job he’s doing on the waterfront. Also, congratulations go to Commission Caldwell on a successful re-election campaign. Commissioner Pinnick commended and complimented Commissioner Thompson on the leadership he has exhibited over the last year as President of the Washington Public Ports Association. The excellent communication and coordination of efforts he has fostered has not gone unnoticed. The Regular Meeting recessed at 10:08 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 12:30 p.m. The Executive Session ended at 1:10 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.