COMMISSION MEETING June 10, 2008 The Port of Grays Harbor Commission Meeting for June 10, 2008 was called to order at 9:00 a.m. Mike Johnson led the meeting in the Pledge of Allegiance. Those in attendance at the meeting were as follows: COMMISSION AND STAFF Stan Pinnick - Commissioner Chuck Caldwell - Commissioner Jack Thompson - 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 Diane Souron - Business & Trade Development Asst. Seth Taylor - Marine Terminals Manager VISITORS Greg Maurer - Precision Hydroseeding Judy Maurer - Precision Hydroseeding Pete Colean - Rusty Scupper Pirate Daze Les Bolton - GH Historical Seaport Mike Abel - Imperium Grays Harbor Vicki Cummings - GH Council of Governments Leif Nesheim - Daily World Items discussed and actions taken where required are as follows: MINUTES: 1. By motion made by Commissioner Caldwell, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes of the May 13, 2008, Regular Commission Meeting as recorded in Minutes Book No. 16, on pages 113 through 117 inclusive. VOUCHERS: 1. By motion made by Commissioner Thompson, seconded by Commissioner Caldwell and adopted, the Commission unanimously approved for payment those Payroll Vouchers issued May 20, 2008 and June 5, 2008, and General Disbursement Vouchers No. 71234 through and including No. 71399 for payment in the amount of $919,189.62. REPORTS: Port Machine Works 80th Anniversary Gary Nelson was pleased to introduce Ole and Cathy Mackey, long-term tenants of the Port. Their business, Port Machine Works, first entered into Lease No. 8 with the Port back in 1927. Ole has described himself as a self-acknowledged waterfront groupie as he is involved in a number of areas concerned with Grays Harbor’s waterfront, including his Grays Harbor representation on the Washington State Pilotage Commission. Commissioner Stan Pinnick made a presentation to Mr. & Mrs. Mackey recognizing Port Machine Work’s more than 80 years as a Port tenant. Rusty Scupper’s Pirate Daze Pete Colean briefed the gathering on the upcoming Rusty Scupper’s Pirate Daze event in Westport June 20-22. Approximately 7,000-10,000 visitors are expected to attend this year. The event includes multiple entertainment opportunities all three days from morning to evening. Commissioner Stan Pinnick commented that he has seen the event and its attendance grow every year since its inception. Grays Harbor Historical Seaport Authority Capt. Les Bolton provided a PowerPoint presentation on the Seaport’s programs. Those activities have included the construction of a spar shop in Junction City that houses the largest tracer lathe in North America, acquisition of two sail making sewing machines and establishment of sail making classes, ship maintenance and repairs, crew training program, and master planning for property the Seaport acquired in 2004 between the Chehalis River Bridge and Pakonen’s Boat Yard. Capt. Bolton requested a Letter of Support from the Port of Grays Harbor to submit with the Seaport’s grant applications for pier and dock infrastructure at the new property site. Commissioner Thompson made a motion that the Port provide the Letter of Support for the Project. Commissioner Caldwell seconded the motion, which passed with all Commissioners in favor. Port staff was directed to prepare the letter. Westport Planning Projects Update: Haul-Out & Boat Yard Lisa Benn provided a brief presentation on the status of the proposed Westport Haul-Out preliminary design and permitting and the design of the proposed Boat Yard. The Haul-Out pre-design is substantially complete and negotiations are underway on the required mitigation for the project in order to complete the remaining agency permits for the project. Reid Middleton is moving from the pre-design phase of the Boat Yard project into the engineering design phase, which will include a geotech study of the proposed site. Before either project can move into construction, Commission authorization will be required. Vessel Activity Leonard Barnes informed the Commission that three vessels were scheduled to load at T2 during May. Year-to-date, 19 vessels have loaded more than 326,500 MT of cargo at the Port’s berths and discharged 59,033 MT. Vessels are already scheduled to load AGP cargoes in June, July and August. Public Comment Greg Maurer of Precision Hydroseeding addressed the Commission. He requested an amendment to his Lease No. 948 with the Port in order to store various equipment and accomplish repairs on site. Once an amendment is completed, he would like to have the lease assigned to Evergreen Hydroseeding. Commissioner Pinnick advised Mr. Maurer that the Commission would consider his request and referred the matter to staff. ACTION/RESOLUTION ITEMS: Action Item No. 1 Mike Johnson informed the Commission three bids were received on Contract No. 1580, T2 Pipe Pile Repairs from: • Quigg Bros, Inc. - $245,200 • Rognlin’s, Inc. - $230,000 • Washington Industrial Coatings, Inc. - $191,880 Motion to authorize the Executive Director to award Contract No. 1580, T-2 Pipe Pile Repairs to Washington Industrial Coatings, Inc. in the amount of $191,880, plus sales tax, was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed unanimously with all Commissioners in favor. Action Item No. 2 Diane Souron announced that two bids had been received on Contract No. 1587, Rotating Beacon Replacement and Electrical Building Renovation from: • Coastal Construction -- Base Bid: $120,754.50 -- With Additives: $136,783.00 • Rognlin’s, Inc. -- Base Bid: $113,303.46 -- With Additives: $144,927.06 Both bids were above the Engineer’s Estimate and amount of grant funds available. Due to the amount of FAA funding available for this project, Staff recommended the project be awarded at the Base Bid only. Per FAA Airport Improvement General Provision Section 00710, Part 30-02, Additives B and C will not be awarded as part of this project. Motion to authorize the Executive Director to award Contract No. 1587, Rotating Beacon Replacement and Electrical Building Renovation to Rognlin’s, Inc. in the amount of $113,303.46, plus sales tax, was made by Commissioner Caldwell and seconded by Commissioner Thompson. Motion passed unanimously with all Commissioners in favor. Resolution No. 2714 Vicki Cummings, Executive Director of the Grays Harbor Council of Governments, presented the Port’s Six-Year Transportation Improvement Program for 2009 to 2014 (TIP) to the Commission for consideration. In order to secure state and federal funding for transportation projects, a public entity must have such projects included in a 6-Year TIP, adopted and updated annually. Motion to adopt Resolution No. 2714: Adoption of the Port of Grays Harbor Six Year Transportation Improvement Program 2009-2014 was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with all Commissioners in favor. Resolution Adopted. Public Comment None NEW BUSINESS: Gary Nelson reported that Senator Murray’s office announced on May 16 the Port of Grays Harbor had been awarded a FY08 Port Security Grant for improvements to perimeter security at its Main Marine Terminal Complex. Mr. Nelson stated that the Washington State Pilotage Commission was scheduled to rule on the Port’s proposed Pilotage Tariff changes at its June 12th meeting. Gary Nelson and Mary Nelson will both attend that meeting. The U.S. Army Corps of Engineers has begun a Reconnaissance Study on constructing the remaining two feet of authorized draft for the Grays Harbor Navigation Channel. Congress authorized the channel depth to –38’, but the improvement was only appropriated and constructed to –36’. This Study is the first step in the Corps determination to go forward with the project. A Stakeholders’ Meeting is tentatively scheduled for Monday, June 23, to meet with various parties and bring them up to speed on the Grays Harbor Navigation Improvement Project, commonly referred to as Deeper Draft. There being no further business to come before the Commission, the Regular Meeting recessed at 10:10 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 12:30. The Executive Session ended at 12:45 p.m., after one extension had been announced, and the Regular Meeting adjourned at that time.