SPECIAL COMMISSION MEETING July 29, 2009 The Port of Grays Harbor Special Commission Meeting for July 29, 2009 was called to order at 4:00 p.m. Mike Johnson led the meeting in the Pledge of Allegiance. Commissioner Pinnick confirmed with Legal Counsel that appropriate Notice of the Special Meeting had been made. 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 Diane Souron - Business & Trade Development Asst. VISITORS Randy Lewis -City of Westport Josh Metcalf - HDR Engineering Items discussed and actions taken where required are as follows: ACTION ITEMS: Action Item No. 1 Gary Nelson reported that construction bids for the Port Industrial Road Improvement project had been received from seven companies. Bid results for Base Bid Schedule A and Additive Alternate Schedules B, C & D are as follows: Mountain West Construction, LLC -$3,168,393.09 DLB Earthwork Company - $3,323,359.73 Rognlin’s Inc - $3,733,302.07 Quigg Brothers, Inc. - $3,513,670.00 Granite Construction Company - $3,646,826.96 Bowers Construction, Inc. - $3,657,413.29 West Coast Construction Company, Inc. - $4,555,652.20 Mike Johnson stated that references had been successfully checked concerning the apparent low bidder, Mountain West Construction, LLC. As this project is being funded by a pass-through grant from the U.S. Federal Highway Administration through Washington State Dept. of Transportation (WSDOT), WSDOT staff have reviewed and concurred with the bid results and awarding of the contract to the apparent low bidder. Motion to Award Contract No. 1601, Port Industrial Road Improvements to Mountain West Construction, LLC in the amount of $3,168,393.09, including sales tax, was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Gary Nelson informed the Commission that a formal agreement had been negotiated between the Port and Pasha Stevedoring and Terminal LLP concerning Pasha’s utilization of port facilities and storage areas commonly known as Terminal No. 4 for the import and export of cargo. A signed Memorandum of Understanding (MOU) will only become effective upon approval of the Port Commission. Motion to approve and ratify the Executive Director’s execution of the MOU between Pasha Stevedoring and Terminal LLP and the Port of Grays Harbor for use of Terminal No. 4 facilities was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Leonard Barnes announced that the City of Hoquiam has requested the use of a one-acre site at Paulson Road and Airport Way for a construction activity staging area. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1071 with the City of Hoquiam was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 4 Gary Nelson reported that negotiations with Arrow Launch to provide pilot launch services, as authorized by the Commission at its May 2009 meeting, had failed. The Port and Arrow Launch were unable to reach agreement due to misunderstandings between both parties regarding the transition from proposal to actual agreement. Brusco Tug & Barge was contacted to determine if they were interested in providing pilot launch services. They declined. Knutson Towboat was then contacted and expressed an interest in providing the service and maintaining a presence in Grays Harbor through this service. Motion to authorize the Executive Director to negotiate and implement a contract for pilot launch services with Knutson Towboat effective August 1, 2009 was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Action Item No. 5 Gary Nelson recalled that when the Ocean Cold facility was constructed at Firecracker Point in Westport, it was determined that the sewage pump station serving the entire Marina District had reached the maximum capacity of the wet well and therefore capacity for additional development in the area is extremely limited. Randy Lewis, City Administrator for the City of Westport, reported that the City and Port worked together on an application to Grays Harbor County for funding to upgrade the sewage pump station, including conversion of an existing unused dry well to a second wet well, new pumps, controls and telemetry, and an emergency generator to provide continuous operation during power outages. The County has responded with $300,000 in .09 tax funding. Ocean Gold and the Port have preliminarily committed $25,000 each to the project with the City financing the project balance. Motion to confirm the Port’s commitment of $25,000 from the General Fund to the City of Westport for completion of Pump Station No. 2 Upgrade was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. The Special Meeting adjourned at 4:34 p.m.