COMMISSION MEETING December 8, 2009 The Port of Grays Harbor Commission Meeting for December 8, 2009 was called to order at 9:00 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 (late arrival) - Legal Counsel Gary Nelson (late arrival) - 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. VISITORS Brian Pernula - Wild West Seafood Mike Cotten - SR520 Pontoon Construction Project Susan Haupt - SR520 Pontoon Construction Project Jeanne Clark - SR520 Pontoon Construction Project Cheryl Ellsworth - SR520 Pontoon Construction Project Whitey Forsman - Washington Crab Producers, Inc. Fred Goheen - Jones Stevedoring Company Randy Lewis - City of Westport Josh Metcalf - HDR Engineering, Inc. 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 November 10, 2009, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 12 through 18 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 November 20, 2009 and December 4, 2009, ACH/Wire Transfers issued November 25, and General Disbursement Vouchers No. 74381 through and including No. 74529 for payment in the amount of $2,170,702.06. REPORTS: Status of SR520 Pontoon Construction Site Project, Overview of Design-Build Contracting, & Update of Environmental Process Including Upcoming Release of Draft EIS Washington Department of Transportation’s (WSDOT) SR520 Design-Build Manager Mike Cotten and Pontoon Environmental Manager Susan Haupt provided an update on the Pontoon Construction Project. WSDOT will announce the apparent best value bidder for the design-build contract on December 23, 2009 and expects to award the contract by the end of the year. Release of the Draft EIS is scheduled for February 2010. WSDOT has been working with Quigg Bros., Inc. on pontoon construction field tests at the Satsop Business Park. When a decision is made concerning which proposed Grays Harbor construction site will be used for the project, WSDOT intends to purchase the property. Purchase options are in place on both sites, awaiting final decision. Construction of the site is expected to begin by the end of 2010. Terminal No. 1 Enhancement Project Status & Terminal No. 2 Maintenance Dredging Mike Johnson reported that all of the permits required for the project have been received. The dredging contract is underway at T-1, with the maintenance dredging at T-2 to take place next week. The contractor’s work barge has arrived and as soon as the dredger has completed their work, the contractor will move in and start to demolish the existing structures. Completion of installation of the electrical line needed to power up the new facility will be done by the end of the month. The entire project is expected to be finished April 2010. Terminal No. 3 Improvements Update Mike Johnson provided a slide show proposing installation of a dolphin/fendering system to further protect the downstream corner of the dock. The permit process for this improvement is underway. A new fleeting system will be installed by the tenant, Willis Enterprises, to move barges up/down the dock for loading. Vessel Activity Leonard Barnes reported that November was a busy month with five ships and four barges loaded at Port facilities with 136,508 MT of export cargoes. This brings the total number of vessels handled year-to-date to 39 ships and 14 barges. A number of vessels and barges are scheduled for December and January, including Westway’s first import of liquid bulk product due later this month. Public Comment Brian Pernula, Wild West Seafood in Olympia, explained that he has been informed by Westport seafood buyers and hoist owners that the charge per pound to unload seafood product this crab season will be in the 15-25¢ range. This works out to a charge of $415 per hour. Randy Lewis, City of Westport Administrator, reported that the City would be re-advertising the Westhaven Drive project within the next few weeks. Construction is anticipated to begin in March with reopening of the road by Memorial Day. Commissioner Pinnick asked if there was much impact along Westhaven Drive from the first big storm of the season with water overtopping the Revetment. Mr. Lewis and Marina Manager Robin Leraas responded that the cut made in the corner bankline near the Islander helped to divert some waters from the street into the Marina. Discussion is ongoing with the U.S. Army Corps of Engineers regarding the flooding issues. Commissioner Caldwell was concerned if any sewer lines might be in jeopardy of being exposed in the Islander RV Park adjacent to the Marina due to erosion caused by the overtopping of the Revetment. Ms. Leraas reported that no active city sewer lines are in danger in the area. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that two bids had been received on the petroleum products supply and delivery contract as follows: • Pettit Oil Company (after rack price adjustment by Port) - $130,760.20 • MASCO Petroleum - $130,025.20 Motion to authorize the Executive Director to award Contract No. 1611, Petroleum Products Supply & Delivery, to MASCO Petroleum in the amount of $130,025.20 was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Legal Counsel Art Blauvelt advised the Commission that due to the November 16, 2009 windstorm, the Executive Director made an Emergency Declaration for damage incurred to the roof of the Terminal Building located at Bowerman Field in Hoquiam. The high winds blew off major portions of the lower roof of the building. As a result, water was pouring into the building and causing major water damage. The weather report predicted on-going high winds and rain. Immediate action was necessary to prevent further rain damage to the building, its contents and the property of the tenant, the FAA. Due to the finding of an emergency, bidding requirements were waived and a contract was awarded to Root Construction for the immediate placement of tarps over the building. In addition, a contract was awarded to Western Washington Construction to replace the lower roof of the building. Motion to ratify the Executive Director’s finding of an emergency at the Airport Terminal Building and ratify the awarding of contracts to Root Construction and Western Washington Construction for repair of the wind and rain damage was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Mike Johnson reviewed the proposed installation of some additional fender system upgrades needed at Terminal No. 3 to protect the pier while berthing and loading chip barges. BERGER/ABAM has completed the design for the enhancements and permit applications have been submitted. Motion to authorize the Executive Director to Call for Bids on Contract No. 1608, Terminal 3 Enhancements, was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Resolution 2754 Mary Nelson provided the annual policy update for the amendment to Salary & Benefit Resolution. A recommendation to maintain the salary range schedules as is and set the 2010 holiday schedule as presented was made. Motion to adopt Resolution No. 2754 amending the Port’s Salary and Benefit policy by maintaining the salary range schedules used to set employee compensation, and to adopt the 2010 holiday schedule was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2755 Mary Nelson reported that annually, the Commission has given the Executive Director authority to sell surplus property up to $10,000 in value. Per the RCWs, this authority must be re-authorized each year. Motion to adopt Resolution No. 2755, Delegating Authority to the Executive Director to certify, sell and convey Port surplus personal property value at $10,000 or less during the 2010 calendar year was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2756 Art Blauvelt explained that Westway made improvements to the Port’s West First Lead Rail Track during construction of their rail car loading facility. The new line crosses Port Industrial Road just east of Imperium’s crossing and continues on to serve Westway Terminals. Consistent with the Port’s policy to own or control rail improvements on Port-owned property outside of leased property, the Port has negotiated the purchase of these improvements from Westway Terminals. The appraised and negotiated price of the improvements is $300,000.00 and will be funded by a .09 grant from Grays Harbor County. Motion to adopt Resolution No. 2756 approving the purchase of approximately 536 feet of rail line and authorizing the Executive Director to sign documents necessary to purchase the rail line was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment None NEW BUSINESS: Gary Nelson announced that the Grand Opening of the Westway Terminals facility is scheduled for 10:30 a.m. on Tuesday, December 15. Commissioner Chuck Caldwell commented on his observation of the number of people that visit the Port’s Westport Viewing Tower during severe weather events. He inquired about the maximum capacity load of the structure. Legal Counsel Art Blauvelt responded that he would review recreational immunity legislation with regards to maximum capacity of such an amenity. There being no further business to come before the Commission, the Regular Meeting recessed at 10:39 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 12:50 p.m., after a ten-minute extension had been announced, and the Regular Meeting adjourned at that time.