Port of Vancouver USA- Meeting Minutes

Commission President Baker invited comments regarding any items not listed on the agenda from the audience, and there was none at this time.

PUBLIC HEARING

Proposed Amendment to the Comprehensive Scheme of Harbor Improvements and Development for the Port of Vancouver USA

Port Attorney Lisa Lowe gave a detailed presentation on state statutes regarding port comprehensive schemes. She explained that the original intent of comprehensive scheme legislation remains in effect today: to require communication between the port district commission and their "public" regarding spending for capital improvements that the port district was planning. Ms. Lowe said that port districts must prepare and adopt a comprehensive scheme before expending funds on improvements to properties, except expenditures necessary and incidental to developing the scheme itself. She added that the comprehensive scheme must fairly inform the district taxpayers of the nature and extent of the proposed improvements, but detailed plans are not required. She further said that the actual scheme must disclose the general character of proposed improvements and that no expenditure for the improvements of property shall be made by a port district, and no property shall be acquired within an industrial development district, until it has been made part of the comprehensive scheme.

Executive Director Paulson added that the phrase "comprehensive scheme" implies more than it really entails since the scheme is not the same as strategic planning or long-term planning, but simply is giving notice to the public, by means of resolutions, of money that the port intends to expend on improvements.

Commission President Baker opened the public hearing by stating that a legal notice of the hearing was advertised in The Columbian newspaper and meeting notices were mailed to all interested parties on January 30, 2006. She invited comments from the audience.

There being no comments from the audience regarding the proposed amendment to the Port of Vancouver USA Comprehensive Scheme of Harbor Improvements and Development, Commissioner Baker closed the public hearing and resumed the regular meeting.

ACTION ITEMS

Adoption of Resolution #3-2006 to Amend the Comprehensive Scheme of Harbor Improvements and Development for the Port of Vancouver USA

Executive Director Larry Paulson and Environmental Services Director Patty Boyden presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners.

Environmental Services Director Boyden reported that two comments concerning the proposal were received during the comment period which ended at 5 p.m., Monday, February 13, 2006: (1) a standard letter that is received from the Southwest Washington Clean Air Agency each time the Port adopts a comprehensive scheme amendment which is a reminder that anytime construction or demolition is performed, an asbestos evaluation must be conducted; and (2) CRANE comments regarding the manner in which Sandhill Cranes were addressed in the SEPA checklist, which, after subsequent staff review, it was determined that the Sandhill Cranes were appropriately addressed in the proposal.

Commissioner Wolfe asked how the Port's comprehensive scheme aligns with its strategic plan. Executive Director Paulson explained that the comprehensive scheme is a statutory requirement meant to require boards to give notice to the community when they plan to expend money on port improvements and the strategic plan gives direction for the projects named in the comprehensive scheme and provides a blueprint on how the port will be developed.

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners adopted Resolution #3-2006 to amend the Port's Comprehensive Scheme of Harbor Improvements and Industrial Development.

Authorization of Transfer from Tax Fund to the General Fund

Finance Director Maggie Smith presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners.

On motion by Commissioner Wolfe, seconded by Commissioner Miller, and carried unanimously, the Port of Vancouver USA Board of Commissioners authorized the transfer from the Tax Levy Account to the General Account in the amount of $3,922,100 for reimbursement of expenses for environmental remediation and capital projects.

Commissioner Miller inquired about the status of his request for a ten-year cash flow projection and Ms. Smith replied that it was listed on an upcoming workshop agenda.

Approval of First Amendment and Extension to the Management Agreement with Kinder Morgan Bulk Terminals, Inc.

Operations Manager Mike Schiller presented the staff report, as contained in the agenda packet, and 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 approved the First Amendment and Extension to the Management Agreement with Kinder Morgan Bulk Terminals, Inc.

Authorization of a Public Works Contract with Triad Mechanical, Inc., for "Bulk Facility Expansion"

Facilities Director Curtis Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners.

In response to questions by Executive Director Paulson, Mr. Shuck explained there is a 30-day construction requirement as a part of the project and staff has estimated an occupancy date of early June 2006. He added that the project was put on a fast track to accommodate Kinder Morgan.

Commissioner Miller commented that the staff report listed the installation construction period as 30 days, and Mr. Shuck explained that the 30 day period listed in the staff report referred to one element of the contract which includes supply and erection of the fabric-covered structure. In order to accommodate Kinder Morgan's construction deadlines, Mr. Shuck added that other elements of the project, including the site work, utilities installation and foundation construction, would be handled in separate contracts.

In response to another question by Mr. Paulson, Mr. Shuck explained that the total construction project cost is estimated to be $2 million and the current proposal is for one element of the project at an estimated cost of $913,051.52.

Commissioner Miller stated that he was not comfortable with the manner in which this proposal was being presented to the Commission and would have preferred to have the entire project presented at one time, rather than having elements of the project presented as different times.

Mr. Shuck stated that this proposal was the most critical element of the project and its approval would allow staff an opportunity to provide a full construction project schedule and cost estimates to the Commissioners.

Commissioner Miller reiterated his concerns about the way the proposal was presented to the Commission.

Executive Director Paulson explained that the Port had agreed to provide this type of building to Kinder Morgan during negotiations some time ago, however, the negotiations for the extension of the management agreement were extended and completed only a short time ago and that delay in negotiations created the time issue now being discussed. He added that the proposal before the Commission presented an unavoidable dilemma regarding whether or not the budget will match what the project will ultimately cost.

On motion by Commissioner Wolfe, seconded by Commissioner Baker, and carried 2-1 (Commission Miller voted no due to the lease with Kinder Morgan being priced and finalized prior to determining the cost of the bulk facility expansion; he would have preferred to have the lease rate based on the cost of the facility being built for Kinder Morgan by the Port.), the Port of Vancouver USA Board of Commissioners authorized the Executive Director to sign a Public Works Contract for "Bulk Facility Expansion" with Triad Mechanical, Inc., for a not to exceed amount of $913,051.52 (includes Washington State Sales Tax).

Approval of Lease with City of Vancouver

Facilities Director Curtis Shuck presented the staff report, as contained in the agenda packet, and discussed the proposal with the Commissioners. It was pointed out that the attachment to the proposed agreement erroneously listed Building 3201 as its former designation of Building 2575 and needed to be revised to reflect the current number (3201) before it is submitted to the City of Vancouver.

On motion by Commissioner Miller, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the City of Vancouver lease for approximately 6,900 square feet of warehouse space in Building #3201 subject to the attachments being corrected to reflect Building #3201 (formerly Building 2575).

Authorization of a Personal Service Contract with ENTRIX, Inc. for "National Marine Fisheries Service Liaison for Columbia Gateway"

Environmental Services Director Patty Boyden presented the staff report, as contained in the agenda packet, and 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 a Personal Service Contract for "National Marine Fisheries Service Liaison for Columbia Gateway" with Entrix, Inc. for a not to exceed amount of $248,000 and a contract expiration date of December 31, 2007.

UNFINISHED BUSINESS
Executive Director Paulson presented the Port Contracts Logs dated February 14, 2006.

NEW BUSINESS
There was no new business to come before the Board of Commissioners at this time.

ACCOUNTS PAYABLE
On motion by Commissioner Wolfe, seconded by Commissioner Miller, and carried unanimously, the Port of Vancouver USA Board of Commissioners ratified and approved payment of January 2006 Vouchers 016835 - 017319 in the amount of $2,394,747.66 and 2006 Payroll Checks 04149 - 04170 and Direct Deposits 14770 - 14877 in the amount of $192,444.69.

EXECUTIVE DIRECTOR AND STAFF REPORTS

Executive Director Paulson reported on the following events:

An intergovernmental agreement relative to waterfront development and rail issues has been reached with the City of Vancouver;
Port RePort was held January 26, and he thanked Communications Manager Maureen Chan-Hefflin and Communications Specialists Sue Groth and Amy Hanson for their outstanding efforts to make it another great success;
he and Public Affairs Director Addison Jacobs attended a Freight Mobility Strategic Investment Board (FMSIB) Meeting and numerous legislative visits on January 27;
Judy Clark, from HR Answers, presented employee performance review training to Port staff on January 31 and February 2;
he attended an Interstate Columbia River Improvement Project (ICRIP) Meeting at the Port of Vancouver on February 2; and.
along with Environmental Service Director Patty Boyden and Hutch Johnson, from Cadet, he attended the February 2 meeting of the Fruit Valley Neighborhood Association where the Cadet settlement, along with other Port current issues, was discussed.

Environmental Services Director Patty Boyden reported on a Vancouver Lake Watershed Partnership (VLWP) Steering Committee Meeting that was held February 1 and announced the next regular meeting of the VLWP would be held February 15.

Public Affairs Manager Katy Brooks reported on the Columbia River Crossing Task Force meeting she attended February 1.

Deputy Director Todd Coleman reported that on February 8 he attended an Identity Clark County Board meeting and also a Hazel Dell/Salmon Creek Business Association meeting where he gave presentations on current port transportation issues.

Public Affairs Director Addison Jacobs reported on her recent congressional visits in Washington, DC.

Mr. Paulson announced that the next Port VIP Tour would be held March 23, 2006.

COMMISSIONERS REPORTS

Commissioner Wolfe commended President Baker, Communications Manager Chan-Hefflin and Communications Specialist Sue Groth for their efforts relative to the Port RePort.

Commissioner Wolfe reported that he recently toured the Seafarers Center and met with Kent Williams, Bill Hogan and Dennis McLachlan there. He encouraged Commissioners Baker and Miller to do the same.

Commissioner Wolfe also reported on a regular meeting of the CREDC Executive Committee that he recently attended.

Commissioner Miller commended President Baker for her presentation at the Port RePort.

Mr. Miller reported that he attended the following meetings:

Columbia River Crossing Project Sponsors Council meeting on January 24;
A communications-related meeting with Larry Paulson, Addison Jacobs and Katy Brooks on January 30;
Special Port Commission meeting on February 1;
State of the City Address on February 1; and
A regular meeting of the Regional Transportation Council on February 7, where he was appointed to another committee.

Commissioner Miller reported that he planned to participate in the Clark County Transportation Alliance Day in Olympia on Wednesday, February 15 where, in the absence of Mayor Pollard, he was asked to serve as chair of the event. He added that on Friday, February 17, he and CREDC President Bart Phillips were planning to participate in a meeting of the Higher Educational Working Group in Seattle.

Commissioner Baker reported that she attended one of the port employee performance review training sessions conducted by Judy Clark, of HR Answers, and asked Commissioners Miller and Wolfe to consider having Ms. Clark meet with them to discuss the performance review process for Executive Director Paulson.

Commissioner Baker reported that she recently held meetings with City Councilmember Jeanne Stewart, County Commissioner Betty Sue Morris and City Councilmember Tim Leavitt regarding various matters of mutual concern. She also said that she, Deputy Director Coleman and Facilities Director Shuck met with a landowner in the proposed South Rail access area. Commissioner Baker added that she attended a PNWA Mission to Washington planning session on February 13.

Commissioner Baker said that she also met with Dave Hunt, who is now serving as Executive Director of the Association of Pacific Ports (APP). She said Mr. Hunt has requested that the Port of Vancouver USA join the APP and, after studying materials he provided, she recommended that favorable consideration be given to his request.

RECESS

The regular meeting was recessed at 11:48 a.m. and resumed at 12 p.m. in a workshop.

WORKSHOP

The Board of Commissioners; staff; Pam Neal, representing Columbia River Economic Development Council; and Andy Kangas, representing CB Richard Ellis, held a workshop on (1) Port industrial marketing plans and (2) a Port Administrative Office expansion project from 12 p.m. until 1:10 p.m.

RECESS

The regular meeting was recessed at 1:10 p.m. and resumed at 1:15 p.m.

EXECUTIVE SESSION, CONTINUED

The regular meeting was recessed into executive session at 1:15 p.m. for the purpose of continuing the discussion of personnel, litigation and property matters held prior to this meeting. The executive session ended at 2:04 p.m. No action was taken in the executive session.

ADJOURNMENT

There being no further business to come before the Port of Vancouver USA Board of Commissioners, the February 14, 2006, regular meeting was adjourned at 2:04 p.m. by Commission President Baker.