COMMISSION MEETING December 11, 2007 The Port of Grays Harbor Commission Meeting for December 11, 2007 was called to order at 9:00 a.m. Robin Leraas led the meeting in the Pledge of Allegiance. Grays Harbor County Auditor Vern Spatz administered the Oath of Office to Commissioner-Elect Charles Caldwell for the 6-year term beginning January 1, 2008. 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 Ken Rausch - Marina Operations Manager VISITORS Wes Brosman Private Citizen Walter Van Doominck Private Citizen Vern Spatz GH County Auditor Desireé Dodson Westport City Councilperson Mark Dodson Harbor Resort Hiram Arden U.S. Army Corps of Engineers 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 November 13, 2007, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 73 through 78 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 November 20, 2007 and December 5, 2007, and General Disbursement Vouchers No. 70160 through and including No. 70308 for payment in the amount of $480,820.61. REPORTS: Westport Haul-Out Project Lisa Benn reported that the biological evaluation had been completed and permit applications for construction of the facility were being submitted to the agencies this week. Concerning the Boat Basin Master Plan effort, BST Associates has issued a draft of the Demand Study and Reid Middleton is beginning to work on alternative marina layouts. The next Advisory Committee and Public Meetings are anticipated to occur in mid- to late-January. Navigation Channel Maintenance Dredging Hiram Arden, Project Manager of the Grays Harbor Navigation Channel for the U.S. Army Corps of Engineers presented a slide show on the upcoming annual maintenance dredging of the channel. Bids for the annual maintenance dredging in the inner harbor are due back December 31, 2007. The selected contractor will mobilize to the area and begin work in January/February before the fish window closes. The contractor will have to re-mobilize in July-September to complete the work. Mr. Arden reported on recently completed Westport Marina Breakwater repairs and answered questions from the audience. December 3rd Storm Damage Leonard Barnes described damage to Port assets incurred during the recent high windstorm event. Repairs are in process or are being scheduled for various roofs damaged, skylights, windows, warehouse doors, broken light poles, siding, utilities, and the collapsed equipment cleaning facility. Ken Rausch reported that Marina facilities escaped damage from the early-December storm, due in large part to the surge protection provided by the recently rehabilitated breakwaters. Work is underway to repair the November storm damages. Vessel Activity Leonard Barnes reported that 10 AGP and 24 Imperium vessels have visited the Port’s facilities so far this year. AGP has two more vessels scheduled and IGH is planning to have another ship bring in oils and load biodiesel before the end of the year. Public Comment Desireé Dodson, City of Westport Councilperson, reported that Westport faired relatively well through the storm, except for the extended power outage. Ms. Dodson commented on how still the boats in the Marina were during the storm, much more so than the storms last month and last year, and appreciated the recent breakwater repairs accomplished by the U.S. Army Corps of Engineers. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson informed the Commission that the Port has been awarded a grant from the Washington State Parks and Recreation Commission Clean Vessel Act and Contract Program in order to upgrade the current boat sewage pump-out facility at the Westport Marina. The project, funded through the grant at 75% with the Port providing the 25% match, will include engineering, permitting, equipment and installation of a new pump system as well as acquisition of a portable pump. Motion to authorize the Executive Director to proceed with installation of a boat sewage and disposal facility at an amount not to exceed $70,000 was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Action Item No. 2 Mike Johnson requested authorization to purchase an excavator for the Port through the State Contract. The unit will be used for routine maintenance around the Port Industrial Area. Motion to authorize the Executive Director to purchase a Caterpillar 315D Excavator for the State Contract Price of $132,824, plus sales tax, was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Action Item No. 3 Mike Johnson briefed the Commission on maintenance dredging needs at the Port’s berths in order to keep the berths at maximum depth for the ocean-class vessels that call at Grays Harbor. Since the dredge contractor will be on site working for the Corps, staff would like to negotiate an agreement with them to accomplish the Port’s dredge work while they are in the harbor. Motion to authorize the Executive Director to proceed with Contract No. 1570, Maintenance Dredging was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution 2698 Director of Finance Mary Nelson provided the annual policy update for the amendment to Salary & Benefit Resolution. A recommendation to adjust the salary range tables by 3.0% and set the 2008 holiday schedule as presented was made. Motion to adopt Resolution No. 2698 was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with all Commissioners in favor. Resolution adopted. Resolution 2699 Director of Finance 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. 2699, Delegating Authority to the Executive Director to certify, sell and convey Port surplus personal property value at $10,000 or less during the 2008 calendar year was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment Wes Brosman of Aberdeen expressed his concern about the part-time nature of the Port’s security force and difference in the benefits for Security Guards compared to other Port employees. NEW BUSINESS: Gary Nelson informed Commissioners that in an overall survey of the Terminal 2 dock accomplished last year, it was noted that the steel batter pile caps are deteriorating. As a result, he has recently engaged Berger ABAM to survey the pile caps at T2 in detail and recommend a course of action for repair. Legal Counsel Art Blauvelt reported that a settlement proposal was recently made by a claimant to the Port concerning alleged damage to the claimant’s trailer in April 2006 by a Port-employed longshoreman operating a forklift. Motion to settle the claim in an amount not to exceed $15,000 was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Leonard Barnes and Art Blauvelt described actions the Executive Director will likely take in declaring an emergency in order to expedite necessary repairs to certain damages incurred in the recent windstorm. Only those repairs immediately necessary to protect public safety and the Port’s employees, assets and operations will be addressed. Should such Emergency Declaration be made, a report will be presented at the next Regular Commission Meeting and action requested ratifying the Executive Director’s actions. It was announced that Commissioners Thompson and Pinnick plan on attending the Annual Meeting of AGP Stockholders in Omaha, Nebraska January 17 & 18, 2008 on behalf of the Port. Motion to approve Commission travel to the AGP Annual Meeting scheduled for January 17 & 18, 2008 was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with all Commissioners in favor. Gary Nelson announced that WSDOT plans on holding a public meeting Thursday, January 17, 2008 at Hoquiam High School in order to begin the Environmental Impact Statement process necessary for designation of a Special Projects Construction Site. Port-owned land at IDD No. 1 has been identified as a possible location for construction of floating bridge pontoons. Port Financial Review Workshop Gary Nelson announced that the Financial Review Workshop has been removed from the agenda. Since the November Commission Meeting, where financial information was reviewed and the budget for 2008 was adopted, no new financial information is available. The Regular Meeting recessed at 10:40 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 1:15 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.