APPROVAL OF MINUTES

September 12, 2006, Regular Meeting
On motion by Commissioner Wolfe, seconded by Commissioner Miller, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the minutes of the September 12, 2006, regular meeting as distributed.

OPEN FORUM
Commission President Baker invited comments regarding any items not listed on the agenda from the audience.

There were no comments from the audience at this time.

ACTION ITEMS

Authorize Change Order #2 to a Personal Service Contract with Jones & Stokes for “NEPA Consultant Services"


Environmental Services Director Patty Boyden presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners. She explained that in July 2004 the Port Commissioners approved a contract to Jones and Stokes for NEPA consulting services with a scope of work to provide technical support and assistance in preparing the required permits and approvals for the Columbia Gateway National Environmental Policy Act (NEPA) process. She stated that the project cost was not to exceed $1,460,380 and the contract expiration date was December 31, 2007. She added that Change Order #1, approved in October 2005 and incorporating additional studies and work for the NW 26th Street Extension / Rail Bypass project, increased the contract by $5,801,727.52, for a new total contract cost of $7,262,107.52, and the contract expiration date was extended to December 31, 2008.

Director Boyden explained that Change Order #2 was being requested due to (1) a change in the permitting processes (switching from the United States Fish and Wildlife /National Marine Fisheries lead to the Army Corps of Engineers lead), (2) the demolition of the Great Western Malting buildings for the rail component and (3) the higher level of engineering detail that is required for the prospective tenant on Parcel 3. She added that the proposal would increase the contract by $1,739,199.16, for a new total contract amount of $9,001,306.68, and the contract expiration date would remain the same at December 31, 2008. Director Boyden pointed out that the 2006 budget includes $3,200,000 for an Environmental Impact Statement and the 2007 budget would need to address additional funding for this service.

Greg Summers, Jones & Stokes, also discussed the proposal with the Commissioners.

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners authorized the Executive Director to sign Change Order #2 to the Personal Service Contract for “NEPA Consultant Services” with Jones & Stokes and increasing the contract by $1,739,199.16 for a not to exceed total contract amount of $9,001,306.68.

Approve First Amendment to Lease with Carol E. Bieber d/b/a Columbia Shores Executive Suites

Facilities Director Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners. He reported that Columbia Shores Executive Suites, Inc. has been a tenant at the Port of Vancouver since December 12, 1996, and the facility currently houses 19 separate businesses which continue to build upon the economic impacts within the community. He said that Columbia Shores gave notice to take the first of two unilateral five-year options.

Director Shuck also said that in order to make the property more marketable in a period of intense capital improvement, the Port has negotiated the removal of the current unilateral renewal option in exchange for a mutual renewal option for the second five-year term and a decrease in rental rate during the first five-year term to be in line with current market trends. He gave the following conditions of the amendment: (1) The Port will receive a mutual option to renew the lease at the end of the term (2011); (2) the Port will replace the HVAC system and interior carpet and amortize the cost over this five-year term and execute an amendment upon completion of installation; (3) Columbia Shores will replace the exterior awnings as required at its expense; (3) Columbia Shores will maintain flexibility during this five-year term if the Port receives the opportunity for sale of the property; and, (4) the lease rental base rate shall be $1.46 per square foot plus LHT for the five-year period, which is consistent with the 2nd quarter market rate for Class “B” office space published by CB Richard Ellis.

Based upon the Port receiving rights to a mutual option in 2011, Columbia Shores offering its flexibility in the event of a sale of the property prior to 2011, and the lease rental rate at current market status, it was staff’s recommendation to proceed with the execution of the lease renewal with Columbia Shores. Mr. Shuck said the base rent of $12,088.80 per month plus leasehold excise tax would provide anticipated revenue of $725,328.00 during the five-year term.

On motion by Commissioner Wolfe, seconded by Commissioner Baker, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the First Amendment to Lease between Carol E. Bieber d/b/a Columbia Shores Executive Suites and the Port of Vancouver for Building 110 (8,280 square feet) located at Terminal 1 subject to (1) revising the agreement by adding “redevelop” in Paragraph 3 and (2) receipt of a signed agreement by the lessee.

NEW BUSINESS

Rotation of Port Commission Officers

Executive Director Paulson stated that this matter, relative to the rotation of commission officers on a biannual basis rather than the current annual basis, was placed on the agenda for discussion at the request of Commissioner Miller. Commissioner Miller said that the matter was presented to him by a citizen and he felt it merited consideration. He explained that the change to a two-year rotation would allow commissioners to serve as president for the two years leading to the end of their terms, it would eliminate the annual need to change signature lines on Port leases and document, and it would provide four years of experience for each new commissioner before becoming president. He pointed out that the primary use of the rotation system is to provide commissioner ending a term and facing reelection with the greatest possible exposure. The commissioners discussed the proposal and made no change to the rotation schedule.

ACCOUNTS PAYABLE

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners ratified and approved payment of September 2006 Vouchers 020568 – 021060 in the amount of $3,314,728.93 and September 2006 Payroll Checks 04334 – 04354 and Direct Deposits 15671 - 15787 in the amount of $208,154.32.

EXECUTIVE DIRECTOR AND STAFF REPORTS

Environmental Services Director Patty Boyden reported on several Vancouver Lake Watershed Partnership meetings, including the September 6 and October 4 steering committee meetings and a September 20 partnership meeting. She said that the next steering committee meeting was scheduled on November 1 and discussion of hiring a project manager was included on that meeting’s agenda. She added that the next regular partnership meeting would be held on November 15 at the Port.

Facilities Director Curtis Shuck reported on September 7 and October 5 Fruit Valley Neighborhood Association meetings that he and Community Relations Manager Katy Brooks attended.

Deputy Executive Director Todd Coleman reported on a September 12 Columbia Gateway NEPA Public Scoping Meeting that he participated in and said a Port presentation was given to two different groups with good attendance and high interest at both sessions. Mr. Coleman also reported on a September 19 Columbia Gateway NEPA Project Partners Team meeting that he attended.

Community Relations Manager Katy Brooks reported on the September 14 Arnada Neighborhood Association meeting that she attended where Fourth Plain traffic and other concerns were discussed with others attending.

Executive Director Paulson reported on a US Coast Guard Hearing that he attended on September 21. He said the hearing was related to Columbia River Crossing project issues and the nine proposals for supplemental or replacement bridges and how navigation would be affected. He said the hearing was a way for the Coast Guard to collect and process information on the navigation side and, in the longer term, to help determine what is going to be the Columbia River Crossing and its preferred alternative.

Port Public Affairs Director Addison Jacobs reported that she attended the Annual Chamber Dinner on September 21 and joined WSU Vancouver Chancellor Hal Dengerink at his table.

Executive Director Paulson reported that he and Ms. Jacobs attended the September 22 WPPA Legislative Committee Meeting in Olympia which is an annual event for the association to gather information regarding pending legislative issues from its members. He mentioned that one matter discussed at the meeting was a proposal from the Port of Bremerton to amend RCW Chapter 67 to clarify authority of ports to invest in tourism-related facilities, in particular hotels. Mr. Paulson said that he feels the proposal diminishes the uniqueness to be an economic catalyst in areas that might otherwise be neglected that ports in this state currently have. He advised that the issue was tabled at that WPPA meeting and may be considered during the WPPA annual meeting in December.

Community Relations Manager Brooks reported that she and Commissioner Wolfe gave a Port presentation and tour to a model train group on September 26.

Executive Director Paulson reported on a September 27 meeting of the Columbia River Crossing Task Force and a September 28 meeting of the Downtown Vancouver Association that he and Community Relations Manager Brooks attended.

Executive Director Paulson mentioned that the Port’s annual budget workshop was held October 4 and 5 and that Commissioner Miller, who will serve as the 2007 commission president, participated in the budgetary planning session with staff.

Executive Director Paulson noted that an October 4 Joint Clark County Ports Meeting was held with the Port of Ridgefield and Port of Camas Washougal. Commissioner Wolfe said that he would like to have at least bi-monthly reports from Executive Director Paulson regarding discussions with the other port executive directors.

Facilities Director Shuck reported on an October 6 meeting held with approximately 30 port rail stakeholders, including tenants and customers, which focused on the port’s rail design program.

Executive Director Paulson reported on the WPPA Cooperative Development Committee Seminar that was held October 2 and 3 in Vancouver. He explained that the seminar focused on transportation logistics, primarily rail, and included over 60 attendees.

Community Relations Manager Brooks reported that she had planned to participate in an October 7 waterfront tour with the Columbia River Crossing Env. Justice and Community Group but it was canceled due to a lack of interest among members.

Executive Director Paulson mentioned that port staff, including Todd Coleman, Alastair Smith, Curtis Shuck and himself, may be visiting Burlington Northern Santa Fe Railway staff in Ft. Worth, Texas, during the following week.

Executive Director Paulson announced an October 27 Port presentation to the Clark County Labor Round Table and the annual Port Tenant Holiday Event on December 18 at the Red Lion Inn at the Quay.

COMMISSIONER REPORTS