COMMISSION MEETING March 9, 2010 The Port of Grays Harbor Commission Meeting for March 9, 2010 was called to order at 9:05 a.m. Mike Johnson led the meeting in the Pledge of Allegiance. President Thompson announced that Commissioner Caldwell was participating in the meeting via speakerphone. 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. VISITORS Kevin Campbell - Brusco Tug & Barge LeRoy Moay - TMI Forest Products Fred Goheen - Jones Stevedoring Company Whitey Forsman - Washington Crab Producers, Inc. Roger Milliman - GHEDC Mike Quigg - Quigg Bros., Inc. Billy Swor - ILWU Local No. 24 Bill Douglas - SSA Marine Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and unanimously approved, the Commission adopted the Minutes of the February 9, 2010, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 33 through 40 inclusive. VOUCHERS: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued February 19, 2010 and March 5, 2010, ACH/Wire Transfers issued February 23 and 26, 2010, and General Disbursement Vouchers No. 74869 through and including No. 75038 for payment in the amount of $2,760,934.70. REPORTS: Terminal 1 Berth Enhancement Project Status Mike Johnson reported that work is progressing on the construction of the new pier. Issuance of Notice to Proceed was delayed due to later than anticipated receipt of the final permits. • Hickey Marine Enterprises removed 41,757 cubic yards of material during dredging of the berth under their contract. • Quigg Bros., Inc. is installing piling as quickly as possible to keep the project on schedule. • Campbell Electric Company has installed the electrical equipment and is awaiting inspection before the system can be energized. • Mayes Testing & Engineers, Inc. has been hired to perform third party inspections and lab services of construction materials used. Port Property Appraisals Leonard Barnes informed the Commission that every five years, the Port conducts an appraisal of Port-owned properties to determine current fair market value (FMV). These updated values are used to update rent amounts on Port leases. The Port has requested proposals from seven appraisers to conduct the review this year. Responses are due April 19, 2010. Vessel Activity Leonard Barnes announced that during February 2010, the Port handled five ships and three barges loading 115,660 MT of cargo and 1,177 autos. Year-to-date, ten ships and seven barges have visited Port facilities loading 297,613 MT and 1,404 RoRo units. This is a 64.5% increase in volume when compared to January and February 2009. Multiple vessels are scheduled for March and April loading automobiles, logs, wood chips, and dry bulk agricultural products. 2009 Port Activity Report Mary Nelson, Director of Finance and Administration addressed the Commission giving an overview of the goals of the Port. She then introduced various staff members who reported on activity of each Operating Division with a PowerPoint presentation as follows: Leonard Barnes - Marine Terminals & Industrial Properties Diane Souron - Bowerman Airport Robin Leraas - Westport Marina Ms. Nelson followed the operation reports with a consolidated report of the Port’s financial results for 2009. Commissioners Pinnick & Caldwell thanked the Executive Director and staff for all their hard work in making 2009 a remarkable year for the Port of Grays Harbor. Public Comment None ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson reported that staff reviewed the proposals submitted by four firms for engineering and design services for Marine Rail System, Phase 1. Based on the proposals and criteria required for the project, the review team recommends selection of RailPros, Inc., with whom to begin negotiations. Motion to authorize the Executive Director to refine scope, negotiate and prepare an agreement with RailPros, Inc., for engineering and design services for the Marine Terminal Rail System, Phase 1 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Mike Johnson explained that staff is continuing with proposed modifications to the existing rail infrastructure within the Marine Terminal Complex. In order to keep the project moving forward, staff recommends publishing a Request for Qualifications (RFQ) from firms specializing in engineering and design for Phases 2-4 of the Marine Terminal Rail System. Motion to authorize the Executive Director to proceed with an RFQ for the Marine Terminal Rail Enhancements Engineering and Design Services, Phases 2-4 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Legal Counsel Art Blauvelt advised the Commission that due to the February 10 train derailment on the track near T-4, the Executive Director made an Emergency Declaration to right the rail cars and repair the damage to the rail track. Immediate action was necessary to remove the blockage which prevented movement of rail cars, loading of ships and positioning of cargo, and repair the broken and dislodged rail track before any rail traffic could use the track. Due to the finding of an emergency, bidding requirements were waived and contracts were awarded to Quigg Bros., Inc. for righting two rail cars back on the track with heavy equipment and to Tiger West to make repairs to the track along E. Terminal Way and replace the broken rail using rail pieces from the Port’s inventory. Motion to ratify the Executive Director’s finding of an emergency and ratify the awarding of contracts to Quigg Bros., Inc. for righting of the rail cars and to Tiger West for track repairs was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution 2761 Mary Nelson presented a resolution for amending the Grays Harbor Pilotage District Tariff. The only change proposed is to adjust the pension charge based upon calculation by the Puget Sound Pilot Association, who administers the Grays Harbor pension funds for retired pilots. Staff is recommending no change to other pilotage fees. Commissioner Thompson tabled the Resolution to a future meeting to allow for adequate public notice in accordance with RCW 53.08.390. It was reported that retired pilot Captain Bill Dietrich recently passed away. He served the shipping industry well for many years as a Grays Harbor Pilot. Public Comment None NEW BUSINESS: Gary Nelson went over several calendar items with the Commission, including: • March 15 –Randy Rogers, PNW Director of MARAD, will visit the Port • March 15 – State Auditors will begin work on the Port’s annual audit • March 20 – Port will have a booth at Grays Harbor Expo, Aberdeen High School • March 22-24 – Commissioner Thompson and Mr. Nelson will attend the AAPA Spring Meeting in Washington, D.C. • March 25 – Mr. Nelson & Leonard Barnes will be in Detroit meeting with potential customers • March 30 – Westport Marina User’s Meeting at the Westport Maritime Museum Commissioner Thompson reported on the progress of the WPPA Centennial Committee planning efforts for the upcoming Centennial celebration. The WPPA will go forward with HistoryLink.com in producing essays on each of the 75 ports in Washington. Project work will begin with the oldest ports first, including the Port of Grays Harbor. Commissioner Pinnick thanked everyone on behalf of the Grays Harbor Shipping Club for their very successful 25th Annual Crab Feed. The event was sold out. There being no further business to come before the Commission, the Regular Meeting recessed at 10:55 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. The Executive Session ended at 1:00 p.m., and the Regular Meeting adjourned at that time.