COMMISSION MEETING June 8, 2010 The Port of Grays Harbor Commission Meeting for June 8, 2010 was called to order at 9:04 a.m. Chuck Caldwell 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 Leonard Barnes - Deputy Executive Director Lisa Benn - Accounting Manager Mike Johnson - Contracts Administrator Robin Leraas - Westport Marina Manager Shannon Anderson - Business & Trade Development Asst. VISITORS Tim Anderson - Rusty Scupper Pirate Daze Tom Bearten - Rusty Scupper Pirate Daze John Chany - WSDOT/Pontoon Project Bill Bumback - WSDOT/Pontoon Project Mike Cotton - WSDOT/Pontoon Project Heidi Happonen - Ocean Companies Richard Carroll - Ocean Companies Ron Morford - Kiewit-General Randy Lewis - City of Westport Fred Goheen - Jones Stevedoring Company Whitey Forsman - Washington Crab Producers, Inc. 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 May 11, 2010, Regular Commission Meeting as recorded in Minutes Book No. 17, on pages 57 through 61 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 May 20, 2010 and June 4, 2010, ACH/Wire Transfers No. 99900010, and General Disbursement Vouchers No. 75455 through and including No. 75635 for payment in the amount of $1,713,527.84. REPORTS: SR 520 Pontoon Project Update Mike Cotton, SR520 Design-Build Manager for WSDOT briefed the Commission with a slide show on the Pontoon Project status and the upcoming June 24 Public Hearing where public comment on the project’s Draft EIS will be taken. Ocean Companies Update Heidi Happonen described public relation and marketing efforts being implemented by the Ocean family of companies (Ocean Gold, Ocean Cold, & Ocean Protein). Richard Carroll briefly spoke about the ocean fishing opportunities for the commercial fleet this year and in the future. Rusty Scupper’s Pirate Daze Tim Anderson spoke briefly about the June 25-27 8th Annual Rusty Scupper’s Pirate Daze event at the Westport Marina. Each year the event has grown in popularity. Between 6,000-8,000 attendees are expected this year. The organizers were appreciative of the Port’s continued support to supply portable toilets in conjunction with the City of Westport for the event. Westport Marina Activities Update Robin Leraas informed the Commission of maintenance & repair activities planned at the Marina this summer as well as the fishing season schedule. The summer crew has been hired for the 12-week summer season. The Port of Grays Harbor is participating in National Marina Day in conjunction with the Grays Harbor Marine Resources Committee. A Beach-Marina Cleanup is set for June 12 from 9-Noon. Volunteer workers will be fed lunch at noon by organizers. Marine Rail System, Phase 1 Update Mike Johnson reported that permitting and engineering efforts for the project are nearing completion. Most permits have been issued, with the remaining expected by the end of June according to Marc Horton of Skilling Connolly. RailPros has completed 90% of the design. Staff anticipates asking for Commission approval to go out to bid at the July Commission Meeting. Mary Nelson discussed the financing plan of the Phase 1 project. The Port has submitted an application to CERB for $2 million in a low-interest loan. Announcement of successful applicants is expected this summer. The Port will cover the balance of the $3 million project from its funds. Commissioner Thompson inquired about core drillings at the site. Mr. Johnson reported that core drilling tests for all phases of the project (Phases 1-4) are being accomplished at the same time. Port of Grays Harbor Centennial Celebration Shelli Hopsecger provided a PowerPoint presentation on preliminary plans to celebrate the Port’s Centennial in 2011. The occasion will actually consist of events and functions throughout the entire year including a media event and trivia contest during the first quarter of 2011, school tours during May/June, and general public tours during the summer. Ms. Hopsecger encouraged everyone to visit the History Link website at www.historylink.org and search on Grays Harbor to find essays already posted about the Port’s 100-year history. Westport Viewing Tower Condition Survey Mike Johnson presented a slide show describing the results of a recent condition survey conducted by TransOlympic Engineering, Inc. of the Westport Viewing Tower. Through ultrasound testing, the engineers found significant rust in the interior of the main columns of the structure. This has reduced the structural integrity of the facility from 100 mph to 60 mph winds. The Port will close access to the structure during wind events where the velocity is expected to exceed 60 mph. Estimated costs of repairing the structure are approximately equal to the cost of building a new structure. Staff anticipates recommending to the Commission that the 30-year old tower be demolished after the current summer tourist season and replaced with a new structure. The Port is working on trying to find funding assistance with the project. The Corps of Engineers and Port funded the original project 50/50 back in 1981 and the Corps has been contacted to see if there might be recreation funds available to assist. Grays Harbor Innovation Partnership Zone (IPZ) R&D Facility Update Mary Nelson reported that the incubator facility project is moving along: • GH IPZ established in 2007 • Feasibility study accomplished in 2008 • Existing building acquired in 2009 • In 2010, the anchor tenant for the building is working with an architect on the initial phase of design. Final design, engineering and permitting will need to be accomplished. The Port is looking at having the facility be LEED certified. Leadership in Energy & Environmental Design (LEED) is an internationally recognized green building certification system, providing third-party verification that a building was designed and built to have the least possible environmental impact on the environment. Vessel Activity Leonard Barnes state that during May six ships and two barges were loaded at Port facilities with 121,205.377 MT of product and 2,301 automobiles. June is gearing up to be a very busy month for cargo movement at the Port. Mr. Barnes noted a milestone in longshore hours paid by the Port of Grays Harbor year-to-date: through the end of May 2010, more longshore hours have been paid than were paid by the Port in all of 2009. Public Comment Ron Morford of Kiewit-General introduced himself to the Port. Kiewit-General has been selected by WSDOT to construct the pontoon construction facility. Mr. Morford said that he looks forward to working in Grays Harbor on the project.. Randy Lewis, City Administrator for Westport, gave an update on the Westhaven Drive Road Improvement Project. Drainage and sidewalk improvements have been installed. The contractor is anticipating acceptable weather for laying asphalt the week of June 21, just in time for the Rusty Scupper Pirate Daze event. Mr. Lewis reminded the Port of the significance of the Westport Viewing Tower as a public access point and location of important electronic equipment. The tower hosts equipment for the vessel tracking system as well as the City’s webcam. ACTION/RESOLUTION ITEMS: Action Item No. 1 Robin Leraas reported that the Westport Marina Charter Office Moorage Agreements are due to expire as of June 30, 2010. An updated replacement agreement was presented. There are currently ten charter offices with 33 charter boats that wish to renew the 3-year agreements. Motion to authorize the Executive Director to enter into Charter Office Agreements with carter offices in Westport for a three-year term with the effective date of July 1, 2010 was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Gary Nelson informed the Commission that Port representatives Seth Taylor, Leonard Barnes, and Commissioner Pinnick are planning a visit to AGP facilities in Hastings, Nebraska. Legal Counsel Art Blauvelt described the provisions of the 2010 Commissioner Travel Resolution. Motion to authorize the travel of Commissioner Pinnick June 21-24 to Hastings and Omaha, Nebraska to meet with AGP representatives and tour their facilities was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 3 Leonard Barnes stated that Paneltech International, LLC would like to extend their lease term for one additional year to June 30, 2011 for Warehouse D. Motion to authorize the Executive Director to amend Lease Agreement No. 1018 with Paneltech International, LLC was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 4 Leonard Barnes reported the long-term Washington Crab Producers, Inc. Lease No. 309 is due to expire. Washington Crab would like to enter into a new lease for nineteen years and seven months for the dock, water space, uplands and warehouse facility located at 1980 Nyhus in Westport. This would allow for all five of their leases to have the same expiration and renewal option periods. Motion to authorize the Executive Director to negotiate and enter into Lease Agreement No. 1081 with Washington Crab Producers, Inc. was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 5 Mike Johnson outlined proposed maintenance work for the pilot boat CHEHALIS including replacement of the mast, repairing the leaking galley sink, dry dock hull inspection, clean and painting of the hull, etc. Motion to authorize the Executive Director to proceed with Contract No. 1626, Port Pilot Boat Repairs – 2010 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Commissioner Caldwell left the Commission Chambers for a few minutes. Action Item No. 6 Mike Johnson reported that ten new steel piling are necessary at the Westport Marina to replace deteriorated and damaged treated wooden piles in order to provide secure moorage and safe public access to the facility. Motion to authorize the Executive Director to issue a Call for Bids on Contract No. 1627, Marina Piling Repairs was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with two Commissioners in favor. Commissioner Thompson recessed the meeting for a short break at 11:36 a.m. Commissioner Thompson reconvened the meeting at 11:38 a.m. with all three Commissioners present. Action Item No. 7 Mike Johnson described additional fender system upgrades needed at Terminal No. 3 to protect the pier while berthing and loading chip barges. Motion to authorize the Executive Director to issue a Call for Bids on Contract No. 1628, Terminal 3 Enhancements was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 8 Mike Johnson stated that the existing contract for the supply, install and repair of tires for all Port-owned equipment is due to expire on July 31, 2010. Motion to authorize the Executive Director to advertise Contract No. 1630, Tire Acquisition and Repair was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Action Item No. 9 Mike Johnson reported that an agreement with Skillings and Connolly, Inc. had been negotiated. The agreement is for permitting of phases 2-4 of the Marine Rail System. Motion to authorize the Executive Director enter into Contract No. 1618, Marine Rail System Permitting, Phases 2-4 with Skillings and Connolly, Inc. for a not to exceed amount of $47,000 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 10 Mike Johnson reported that negotiations with RailPros, Inc. had successfully concluded for the design and engineering of Phases 2-4 of the Marine Rail System. Motion to authorize the Executive Director to enter into Contract No. 1622, Marine Rail System Design and Engineering, Phases 2-4 with RailPros, Inc. for a not to exceed amount of $350,560 was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed unanimously with all Commissioners in favor. Public Comment None NEW BUSINESS: Gary Nelson went over various calendar items with the Commissioners including: • June 10 – Pilotage Tariff Hearing scheduled • June 12 – Marina Appreciation Day • June 18 – Special Port of Grays Harbor Commission Meeting at 9 a.m. at the Port Offices • June 18 – Terminal No. 1 Ribbon Cutting & Dedication with the Governor attending • June 19 – “Paint the Corridor” with a Port team participating • June 24 – WSDOT Pontoon Project Draft EIS Public Meeting at Aberdeen High School Mary Nelson announced that the State Auditor’s Office has issued the 2009 audit reports for the Port of Grays Harbor, including a Single Audit opinion. For the 16th consecutive year, the Port received “clean” opinions in all reports issued. Commissioner Pinnick stated that Grays Harbor Vision 2020 has received a Smart Community Award from the Governor. There being no further business to come before the Commission, the Regular Meeting recessed at 11:55 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 one hour. The Executive Session ended at 1:30 p.m., after a thirty-minute extension had been announced, and the Regular Meeting adjourned at that time.