APPROVAL OF MINUTES

October 10, 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 October 10, 2006, regular meeting.

October 4 , 2006, Board of Commissioners
Joint Ports 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 October 4, 2006, joint ports meeting.

OPEN FORUM

Commission President Baker invited comments from the audience regarding any matter not listed on the agenda. There were no comments from the audience at this time.

ACTION ITEMS

Approval of 2007 Preliminary Budget

Port Finance Director Maggie Smith presented the staff report, as contained in the agenda packet, and discussed the proposal with the commissioners. She said that as part of the annual budget process, staff annually prepares a preliminary budget document during a budget workshop. She added that the workshop, held October 4 and 5, was attended by Port staff and Commissioner Miller, the incoming Board President.

Ms. Smith presented the 2007 preliminary budget and said that it showed, in broad form, the estimated expenditures and anticipated available funds from which all expenditures are to be paid during the coming year.

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners adopted the 2007 preliminary budget as presented.

Approval of First Amendment to Lease with Tesoro Refining and Marketing Company

Facilities Director Curtis Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the commissioners. He explained that Tesoro Refining and Marketing Company (Tesoro) has been a Port tenant since1996 and currently leases the tank farm located off St. Francis Lane. He added that the facilities are used as a bulk petroleum terminal for the storage, distribution and sale of petroleum products via pipeline, rail and truck. Mr. Shuck said that the expiration of the lease is October 31, 2006, and Tesoro has three renewal options for a term of ten years each and exercised the first option.

Director Shuck reported that Tesoro’s facility currently also has a Non-Preferential Berthing Agreement associated with Berth 5 at Terminal 2 for the same timeline and that agreement states that in the event Tesoro elects to exercise its option to renew the lease, the Non-Preferential Berthing Agreement shall also be extended. He said that the Port and Tesoro have agreed to a rate of $11,296.55 per month plus leasehold excise tax for the first year with annual CPI increases throughout the balance of the term, which will result in revenue of approximately $1.5 million to the Port over the lease term.

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the First Amendment to the Lease between Port of Vancouver USA and Tesoro Refining and Marketing Co. allowing for a 10-year extension of the Lease Agreement and Non-Preferential Berthing Agreement.

Approval of Fourth Amendment to the Lease Agreement with Food Express, Inc.

Facilities Director Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the commissioners. He reported that Food Express, Inc. (FXI) has been a Port tenant since 1990 and currently leases approximately 13,000 square feet (Building 2901) along with approximately 750 lineal feet of rail where food and products related to the paper industry are stored and transloaded. He added that the expiration of the rail portion of the lease is October 31, 2006, and FXI has one renewal option for a term of ten years which it has exercised.

Director Shuck said that FXI’s main premises lease has an expiration date of 2015; therefore, FXI has requested that the Port agree to a lease term consistent with that of its main premises. He said that the Port and FXI have agreed to a lease term for a period of nine years, which coincides with the October 31, 2015, expiration date on its main lease premises, at a rate of $1.2248 per lineal foot ($918.60) with annual CPI adjustments for the balance of the term. He said that the new agreement would result in revenue of $99,144.00 to the Port over the lease term.

On motion by Commissioner Wolfe, seconded by Commissioner Baker, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the Fourth Amendment to the Lease Agreement with Food Express, Inc.

Authorization of a Public Works Contract with JWC, LLC for Administrative Office Expansion”

Facilities Director Curtis Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the commissioners. He reported that the Port solicited Invitations for Bids for a public works project on October 6, 2006, named “Administrative Office Expansion.”; a non-mandatory pre-bid meeting and optional site visit were held September 27th and three (3) firms attended; Addendum #1 was issued on October 3rd; Addendum #2 was issued on October 4th; and, three (3) firms submitted bids on October 6th. He stated that after an evaluation of bids by Port staff, the lowest responsible bidder, JWC, LLC, of Vancouver, Washington, was recommended for award at a cost not to exceed $876,158.07 including Washington State Sales Tax.

Director Shuck said that, according to the terms of the agreement, the contractor would be required to provide the labor, materials, tools, equipment and supervision necessary to construct a 5,451 square foot addition to the existing office building with work broken into two phases: (1) Phase I including, among other items, site demolition, asphalt paving, sidewalks, curbs and striping along the south side of the existing building; excavation and fill; foundation, floor slab, framing, sheathing, roofing, siding, flashing, windows, exterior doors, exterior door hardware, skylights, insulation and gypsum soffits; exterior handrails and plumbing for roof drains, would be completed by December 31, 2006, and (2) Phase II work would commence after December 31, 2006, and include site work north of the existing building; gypsum board; interior finishes such as carpet, resilient flooring, ceramic tile, acoustic tile, ceilings, interior doors and door hardware, wood trim; toilet partitions and toilet accessories; cabinets; plumbing rough-in above the floor slab and plumbing finish work; and, (3) the Port would perform some work such as: site work outside of the existing building except handrails and concrete as noted; site utilities to within five feet of the building foundation; telephone and data cabling, terminations, raceways, boxes and equipment; electrical and low voltage work; landscape and irrigation including top soil and fine grading and fire sprinklers. He added that the FY 2006 Budget includes $480,000 for the administrative office expansion project and anticipated that the 2007 budget would need to address additional funding for this project.

In response to questions by Commissioners Wolfe and Miller, Director Shuck explained that the recommended contracting firm was thoroughly investigated by Port Contracts Administrator Becky Eisiminger, prior to her recommendation for approval, and it was found to be a reputable and capable firm for handling the project.

On motion by Commissioner Baker, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners authorized the Executive Director to sign a Public Works Contract for “Administrative Office Expansion” with JWC, LLC, for a not to exceed amount of $ 876,158.07 (includes Washington State Sales Tax).

Authorization of a Public Works Contract with Balfour Beatty Rail, Inc., for “Hill Track Rehab”

Executive Director Paulson reported that the initial action item submitted to the Commission regarding this proposal did not contain adequate information or a recommendation for approval because the bids were not received until Monday, October 23, 2006 (the previous day). He apologized for that fact and said it was necessitated by timeframes that required staff to move forward with the proposal before receiving the actual bids.

Facilities Director Curtis Shuck agreed with Director Paulson and assured the Commissioners that staff prefers to wait until bids have been received before an action item is presented for consideration, but that this particular proposal was time-sensitive and the matter needed to be presented to the Commission before the bids were received. He presented the staff report, as contained in the agenda packet, and discussed the proposal with the commissioners. He explained that the Port solicited Invitations for Bids on September 21, 2006, for a public works project, “Hill Track Rehab.” He said that this solicitation used Small Works Roster procedures and all “Rail Construction” vendors on the Port’s Small Works Roster were notified of the solicitation; a non-mandatory pre-bid meeting and optional site visit were held September 28 and six (6) firms attended; and, Addendum #1 was issued on October 3 and two (2) firms submitted bids on October 5, 2006. He added that, after an evaluation of bids by Port staff, both bids were rejected because the bids exceeded the engineer’s estimate and the Port’s budget for the project and all firms that submitted bids were notified of the Port’s decision.

Director Shuck reported that the Port re-advertised this public works project (with a revised scope) using Small Works Roster procedures on October 16, 2006; a pre-bid and site visit were not held since this solicitation was a re-bid and the same “Rail Construction” vendors on the Small Works Roster were notified of the solicitation; Addendum #1 was issued on October 19; and, two (2) firms submitted bids on October 23, 2006. He said that after an evaluation of bids by Port staff, the lowest responsible bidder, Balfour Beatty Rail, Inc., of Ethel, Washington, was recommended for award at a cost not to exceed $275,114.50 (includes Washington State Sales Tax).

Director Shuck mentioned that, according to the terms of the agreement, (1) the contractor would be required to provide all labor, materials, equipment, tools and supervision necessary to rehabilitate the Port of Vancouver Hill Track as shown in the contract drawings and specifications; (2) the work would consist of demolition of approximately 613 track feet of the existing hill track, constructing a new sub-ballast surface and rebuilding the track with No. 1 Relay rail, replacing 62 timber ties and re-using designated ties, installing Pandrol plates, screw spikes and fasteners; and, (3) the construction period for this work was estimated at fourteen (14) calendar days with a significant portion of the work performed in a thirty six (36) hour shut down window. He added that at the end of the 36 hour shut down window, the track should be suitable to operate trains over and be accepted by BNSF.

Director Shuck said that the FY 2006 Budget does not include money for the hill track rehabilitation project but $200,000 would be moved from the 2006 “Paving” budget to pay for this work.

On motion by Commissioner Wolfe, seconded by Commissioner Miller, and carried unanimously, the Port of Vancouver USA Board of Commissioners authorized the Executive Director to sign a Public Works Contract for “Hill Track Rehab” with Balfour Beatty Rail, Inc., for a not to exceed amount of $275,114.50 (including Washington State Sales Tax).

UNFINISHED BUSINESS

Port Contracts Logs

The Port contracts logs, including Personal Services Contracts and Public Works Contracts, dated October 24, 2006, were submitted to the Commission.

NEW BUSINESS

There was no new business to come before the Commission at this meeting.

EXECUTIVE DIRECTOR AND STAFF REPORTS

Executive Director Paulson reported on the PNWA Annual Meeting, held October 10 – 14 in Tacoma, which he, along with Commissioner Baker and Public Affairs Director Addison Jacobs, attended. Mr. Paulson mentioned that he was elected to serve another term as PNWA President at that meeting.

Executive Director Paulson reported that a Port Emergency Preparedness Drill was scheduled on Friday, October 27 and would involve port staff, tenants and local emergency agencies.

Executive Director Paulson announced that he would make a presentation on wind energy at the Association of Pacific Ports’ “Growing Ports through Alternative Energy” seminar at the Port of Portland immediately following this meeting.

Executive Director Paulson also reported on an October 13 Port Industrial Marketing Team Meeting; meetings with BNSF representatives and Port staff in Fort Worth the previous week and in Seattle on October 23; and, a West Hazel Dell Lions Club Meeting, attended by Community Relations Manager Katy Brooks on October 16.

Executive Director Paulson announced two upcoming events: a Port presentation at a Labor Roundtable meeting on October 27 and an 11:30 a.m., October 31 POVEA Event at the Port Maintenance Shop.

Public Affairs Director Addison Jacobs reported that she and Director Paulson were planning to attend a Columbia River Channel Coalition-sponsored dinner meeting with Carrie Desmond, a member of Senator Murray’s staff who handles energy, water and Corps issues for her. Commissioner Baker said that she was also planning to attend that meeting.

Director Jacobs said that she and other Port staff were planning to meet with Ms. Desmond and Casey Sixkiller, who focuses on transportation issues in Senator Murray’s office, on October 25 to talk about various transportation-related issues at the Port. After that meeting, she said that City of Vancouver representatives would join them for a tour of the waterfront.

Executive Director Paulson announced that Public Affairs Director Jacobs was coordinating a November 2 meeting with local legislators from Districts 17, 18 and 49, that would be held from 3 to 5 p.m. at the Port. He said that more information on that meeting would be provided. Commissioner Baker voiced regrets that she would not be able to attend that meeting.

Commissioner Baker reported on the PNWA Annual Meeting she attended in Tacoma with Mr. Paulson and Ms. Jacobs.

COMMISSIONER REPORTS