COMMISSION MEETING February 9, 2010 The Port of Grays Harbor Commission Meeting for February 9, 2010 was called to order at 9:05 a.m. Art Blauvelt 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. VISITORS Mark Burch - HDR Engineering Josh Metcalf - HDR Engineering Whitey Forsman - Washington Crab Producers, Inc. Fred Goheen - Jones Stevedoring Company Randy Lewis - City of Westport Jeff Jewell - ILWU Local No. 24 Billy Swor - ILWU Local No. 24 Jeff Olsen - SSA Marine Ray L. Brown - GHGOP Brian Pernula - Wild West Seafood Roger Milliman - GHEDC Mike Pasha - Pasha Automotive Penny Eubanks - Pasha Automotive David Michelson - U.S. Army Corps of Engineers Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of the January 12, 2010, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 25 through 32 inclusive. VOUCHERS: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued January 20, 2010 and February 5, 2010, ACH/Wire Transfers issued January 27, 2010, and General Disbursement Vouchers No. 74693 through and including No. 74868 for payment in the amount of $1,453,798.33. REPORTS: Marine Terminal Pasha Automotive Services Update Mike Pasha of Pasha Automotive reported that the first shipment of Chrysler automobiles was successfully loaded at Terminal No. 4. 6,000 autos are expected to be handled by the end of the first quarter. Pasha has interviewed and trained thirty people to work the processing side of the operation, preparing vehicles for the ocean transport. Fifteen are steady workers now, with more expected to be hired in the spring and summer. Westport Revetment Water Overtopping David Michelson, Coastal Engineer for the Corps of Engineers, provided a PowerPoint presentation concerning the water overtopping issue at the Westport Revetment. A LIDAR (laser) survey of Westport and Ocean Shores has been recently completed and the Corps is in the process of reviewing that survey results for the Grays Harbor Navigation structures (jetties and revetments). The Westport Revetment was built in 1956 to stabilize erosion of Westport. It is thought that ocean wave energy is being focused to the southern side of the navigation channel causing more overtopping events in recent years in the area near the Westport Observation Tower eastward to the tip of Point Chehalis. The Corps and the Port are working on a plan to obtain modifications to the Revetment Plan Authority in order to address a long-term solution. In the short-term, the Corps is looking at repairing the Revetment to get it back to ‘as built’ height and width. The Corps is currently planning to accomplish beach nourishment this spring at the Half Moon Bay breach area. They expect to place 10,000 cubic yards of sand along the Half Moon Bay side and 20,000 cubic yards on the ocean side. Port Industrial Road Update Josh Metcalf of HDR Engineering spoke about the work accomplished on the project to date and the work yet to be finished. Currently, the contractor is on winter shutdown and plans to being work again mid-March, weather permitting. 31 workdays remain under the contract. Commissioner Thompson questioned the amount of change orders to date. Mr. Metcalf anticipates the amount to be approximately $350,000, including two change orders previously approved by the Commission and a pending change order currently under negotiation. Hoquiam River Bridge Repair Gary Nelson reported that the Puget Sound and Pacific Railroad (PSAP) is dealing with the main railroad bridge (also known as the 72.1 Bridge) across the Hoquiam River that is in need of extensive repairs. Congressman Dicks was able to assist in acquiring funding for a horn spur to Hoquiam Plywood. However, if the 72.1 Bridge becomes unusable, then no trains would be able to access this spur. The PSAP, Port, City of Hoquiam and Congressman Dicks are working together to establish if the funding could be used to assist with repair work to the 72.1 Bridge. The City Hoquiam and the Port, at this time, have no financial obligation for the repair project. If the funding change can be accomplished, the PSAP will be responsible for the $350,000 match to the grant. Repairs are expected to be done in the fall of 2010, when the fish window allows. Permitting of the work is underway. Vessel Activity Leonard Barnes reported that the first month of 2010 was busy at Port Terminals. We loaded five ships and four barges with more than 152,500 MT of products in addition to the Chrysler autos. Several vessels are already scheduled for the rest of February and March including seven AGP vessels and three Ro/Ro ships. Public Comment Roger Milliman of the Grays Harbor EDC informed the Commission that FEMA representatives intend to visit Grays Harbor February 17 to look at possible revisions to flood plain mapping. Brian Pernula of Wild West Seafood spoke about the potential benefits to the Port if there were a public hoist at the Westport Marina. Some large boats have had to leave town to get a better price. More than 500,000 lbs. of crab have been delivered out-of-town during the first month of the season in order to get a higher price. Commission Pinnick asked what the rate was to use a private hoist in Westport. Response: 15-25¢/pound. Gary Nelson questioned what affect on the number of fishermen available to use a public hoist facility if the ‘buy-back’ goes through. Whitey Forsman of Washington Crab stated that the reason some boats were going to Anacortes to sell their crab was because they are getting 50¢ to 90¢ more per pound for live crab. Much of the live crab unloaded in Anacortes is destined for the nearby Canadian market. ACTION/RESOLUTION ITEMS: Action Item No. 1 Gary Nelson and Mike Johnson spoke about the plan to begin working on permitting of the Marine Terminal Rail System, Phases 2-4, by issuance of a Request for Qualifications (RFQ). In January, the Commission authorized staff to proceed with permitting of Phase 1, which includes rail track for auto-carrier railcars. The intent of getting started with permitting of the rest of the rail system is to be better ready to take advantage of short-term funding opportunities that are anticipated in the next year for projects that are ‘ready-to-go’. Estimated cost of this permitting is $80,000-$100,000. Commissioner Caldwell asked about commitments from other entities to help with the rail project. Mr. Nelson responded that the Port is negotiating a letter of intent with AGP, should they decide to progress with expansion plans. Motion to authorize the Executive Director to proceed with Contract No. 1618, Marine Terminal Rail Enhancements Permitting, Phases 2-4, was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Mike Johnson briefly described the duties that fall under the janitorial contract for the Port. The existing general cleaning services contract is expiring and the Port intends to advertise the contract. Estimated cost of the contract is between $40,000 and $65,000. Motion to authorize the Executive Director to proceed with Contract No. 1612, Janitorial Services was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Leonard Barnes reported that request has been received to assign Randich Leasing Co. Lease Agreement No. 906 to JB’s Automotive Repair & Electric, Inc. Motion to authorize the Executive Director to consent to the assignment of Lease No. 906 to JB’s Automotive Repair & Electric, Inc. was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 4 Leonard Barnes reported that Pasha Automotive Services would like to amend their Rental Agreement No. 1073 to include an additional square footage of office and conference room space on the lower level of the Roundhouse. Motion to authorize the Executive Director to amend Rental Agreement No. 1073 with Pasha Automotive Services by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 5 Legal Counsel Art Blauvelt advised the Commission that due to the February 1 broken water pipe near T-4, the Executive Director made an Emergency Declaration to repair the broken pipe. Immediate action was necessary to stop erosion of soil and possible damage to the sheet pile and to prevent undermining of rail tracks near T-4. Due to the finding of an emergency, bidding requirements were waived and a contract was awarded to Rognlin’s, Inc. for repairs to the broken water line. Motion to ratify the Executive Director’s finding of an emergency and ratify the awarding of a contract to Rognlin’s, Inc. for repair of the broken water line was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Resolution 2760 Mary Nelson presented a resolution for accounts receivable bad debt write-off concerning one Westport Marina account totaling $9,787.60. Motion to adopt Resolution No. 2760: Accounts Receivable Bad Debt Write-Off was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution adopted. Public Comment Westport City Administrator Randy Lewis reported on the Westhaven Drive Improvement Project in Westport. Bids came in well under the engineers’ estimate so the City will be able to accomplish the base bid and some alternates. The City wants to be substantially done with the project before Memorial Day. The City is also seeking rural development funding for sewer upgrades that would include the Marina District. Commissioner Caldwell asked about the berm recently built near the Observation Tower in Westport. Mr. Lewis responded that this was a temporary stockpile of debris removed from the streets during Revetment overtopping events. This pile will be removed. NEW BUSINESS: Art Blauvelt informed the Commission that the Port’s insurance company has been defending a claim for damages against the Port filed by Seine Vessels Reserve and F/V Cape Caution. The F/V Cape Caution was damaged during the February 4, 2006 windstorm when it broke loose from its mooring in Westport and collided with another vessel. The Port’s insurance company has settled the claim in mediation. Agreed settlement is $50,000, of which the Port’s deductible is $20,000. Motion to authorize the Executive Director to pay the deductible of $20,00 to settle the claim was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Gary Nelson stated that the Port has been asked by Ray Toste and Dale Beasley to send a letter of support to the Governor to declare this year’s crab season a disaster. This is a step necessary to get the issue raised to a level where the federal government can potentially assist with disaster funding opportunities. The Port will draft a letter fully supporting the fishery and the fishermen. It was announced that the 25th Annual Grays Harbor Shipping Club Crab Feed is this evening. All three Commissioners will be attending this event. Commissioner Thompson outlined the progress the WPPA Port Centennial Planning Committee has made in planning for the 100th anniversary celebration in 2011 of the establishment of ports in Washington State. The Hoquiam Business Association recently recognized the Port during its Crossing Bridges Awards with a Revitalization Project Award. This economic development award was given jointly to the Port, Westway Terminal Company and Willis Enterprises for their strong investments in infrastructure at Port marine terminals in Hoquiam. Gary Nelson said that he and Randy Lewis are scheduled to meet with Congressman Dicks’ staff later in the month to discuss what changes in authorization are needed in order to resolve the Revetment overtopping issue. The Regular Meeting recessed at 11:33 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 until 1:00 p.m. when the Regular Session would reconvene for a planning workshop. The Executive Session ended at 1:12 p.m., after a fifteen-minute extension had been announced, and the Regular Meeting reconvened at that time. Planning Workshop Shelli Hopsecger led an open discussion between Commissioners and staff concerning strategic planning for the Port: “Where do we want to be and what steps do we need to take to get there?” There being no further business to come before the Commission, the Regular Meeting recessed at 3:13 p.m.