COMMISSION MEETING May 11, 2010 The Port of Grays Harbor Commission Meeting for May 11, 2010 was called to order at 9:00 a.m. Seth Taylor led the meeting in the Pledge of Allegiance. Those in attendance at the meeting were as follows: COMMISSION AND STAFF Jack Thompson - Commissioner Chuck Caldwell - Commissioner Stan Pinnick - Commissioner Art Blauvelt- Legal Counsel Gary Nelson - Executive Director Mary Nelson - Director of Finance & Administration Lisa Benn - Accounting Manager Mike Johnson - Contracts Administrator Seth Taylor - Marine Terminal Manager Shannon Anderson - Business & Trade Development Asst. Janet Blackmun-Johnson - Accounts Receivable Specialist VISITORS Fred Goheen - Jones Stevedoring Company Ole Mackey - Port Machine Works James Rutz - Boy Scouts of America Glen Heitritter - AGP Cal Meyer - AGP Chuck Janiszewski - AGP Whitey Forsman - Washington Crab Producers, Inc. Billy Swor - ILWU Local No. 24 Jeff Jewell - ILWU Local No. 24 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 April 13, 2010, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 49 through 54 inclusive. 2. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and unanimously approved, the Commission adopted the Minutes of the April 15, 2010, Special Commission Meeting as recorded in Minutes Book No. 17, on pages 55 through 56 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 April 20, 2010 and May 5, 2010, ACH/Wire Transfers issued April 20, 23, 27, and 29, 2010, and General Disbursement Vouchers No. 75294 through and including No. 75454 for payment in the amount of $1,943,800.49. REPORTS: Grays Harbor Boy Scouts James Rutz, Coastal Waters District Executive for Boy Scouts of America provided a report on scouting activities in the Grays Harbor area. More than 400 youth are active in scouting on the Harbor. Activities are occurring all the time to keep scouts busy including camps, senior citizen visitations, community service projects, Pinewood Derby, and Scout-O-Rama, to name a few. Mr. Rutz encouraged the Port to let him know if there are any Port projects that Eagle Scout candidates might be able to take on. Legislative Report Gary Nelson briefed the Commission on this year’s legislative session and its effects on ports. The news for ports was mostly positive. The Marine Spatial Planning bill sponsored by Senator Hargrove did pass. This is an important bill for the State to demonstrate to the Feds that we are being pro-active regarding our maritime resources. Representative Lynn Kessler announced her retirement from the legislature after adjournment. She has been a consistent supporter of ports and the Port of Grays Harbor in particular. The Port of Grays Harbor is grateful for her efforts over the years on behalf of our community. Vessel Activity Seth Taylor announced that during April 2010, the Port handled seven ships and five barges loading 138,542 MT of cargo and 1,835 autos. Year-to-date, twenty-four ships and fourteen barges have visited Port facilities loading 594,977 MT and 5,385 autos. NEW BUSINESS AGP Expansion Report Gary Nelson introduced the following AGP representatives to speak about AGP’s expansion plans at the Port of Grays Harbor: Cal Meyer, Group VP of Processing, Refining & Industrial Products; Chuck Janiszewski, Senior VP of Engineering; and Glen Heitritter, Director of International Trade. The gentlemen went through a slide show outlining proposed storage and additional dump facilities to be constructed at the Terminal 2 (T2) Bulk Facility by AGP. Final engineering and permitting is underway. AGP has hired Todd & Sargent, Inc. out of Ames, Iowa to construct the improvements and expects the contractor to mobilize and begin driving piling this summer. Construction will last 18 months with the facility operational in early 2012. Commissioner Thompson asked what the potential increase in ship calls will be with the completed expansion. Mr. Meyer responded that ship calls should double this year’s record number of vessels. Public Comment Billy Swor of the ILWU Local #24 thanked Mr. Meyer and AGP for initially selecting Grays Harbor to build their facility. Mr. Swor was complementary of working with AGP over the past eight years, “They do what they say they’re going to do.” The ILWU welcomes the expansion of the facility. . ACTION/RESOLUTION ITEMS: Action Item No. 1 Gary Nelson presented a proposed new lease with AGP for approximately five acres of land near Terminal 2 for expanding their operations. The expansion will include silos, shipping bins or flat storage facilities, together with a rail spur off the Port’s loop track, rail dump building, overhead conveyors, belts, and other equipment necessary for the transport of agricultural dry bulk commodities from the leased premises to the AGP Commodity Transload Facility near Terminal 2. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1067 with Ag Processing, Inc. upon completion of the SEPA process was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution 2763 Lisa Benn requested authorization for the sale of abandoned equipment, boat trailer and vessel left on Port premises in Westport. Appropriate notification of seizure of the items abandoned and notification of the impending sale has been sent to owners of the property, if known, with no response. Motion to adopt Resolution 2763: Authorization to Sell Abandoned Vessel, Gear & Equipment was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Resolution Adopted. Resolution 2764 Mike Johnson reported that Whatcom Waterfront Construction has completed construction of the replacement boarding floats at the Westport Marina Boat Launch. Motion to adopt Resolution 2764: Completion and Acceptance of Contract No. 1583, Westport Boat Launch Improvements was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Resolution Adopted. Resolution 2765 Mary Nelson reported that the Port has an opportunity to apply for a low-interest loan in order to finance the Marine Terminal Rail System, Phase 1 project (addition of auto/grain rail trackage in the Marine Terminal Cargo Yard). Staff recommends submitting an application to the Community Economic Revitalization Board (CERB) for a $2 million loan and providing a Port match of $1 million from its reserves or other low cost debt alternative in order to move forward with the project. Motion to adopt Resolution 2765: Authorizing the Executive Director to Submit a CERB Application for Marine Terminal Auto Tracks (Phase 1) was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Resolution Adopted. Public Comment None NEW BUSINESS: Gary Nelson stated that Commissioner Caldwell would like to attend the AAPA Commissioner Seminar in San Deigo, CA June 22-24. Motion to authorize Commissioner Caldwell to travel to San Diego, CA for the AAPA Commissioner Seminar June 22-24, 2010 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Gary Nelson announced that all three Commissioners and himself would be traveling to Chelan May 12-13 for the WPPA Spring Meeting. There being no further business to come before the Commission, the Regular Meeting recessed at 10:04 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 12:30 p.m., after a thirty-minute extension had been announced, and the Regular Meeting adjourned at that time.