Regular Meeting Minutes - 12/14/10

PORT OF VANCOUVER USA
BOARD OF COMMISSIONERS
REGULAR MEETING
Tuesday, December 14, 2010

CALL TO ORDER 

Commission President Jerry Oliver called a regular meeting of the Port of Vancouver USA Board of Commissioners to order at 8:00 a.m., Tuesday, December 14, 2010, at the Port of Vancouver USA Administrative Office, 3103 N.W. Lower River Road, Vancouver, Washington 98660.

EXECUTIVE SESSION

The regular meeting was immediately recessed into executive session at 8:00 a.m. to discuss real estate matters pursuant to RCW 42.30.110(b)(c) and personnel pursuant to RCW 42.30.110(g).  The executive session ended at 9:17 a.m. and a brief recess followed.

OPENING REMARKS BY PRESIDENT AND EXECUTIVE DIRECTOR

The regular meeting was opened to the public at 9:30 a.m. with the Pledge of Allegiance led by Commissioner Oliver. He announced that the Port of Vancouver USA Board of Commissioners had been in executive session from 8:00 a.m. to 9:17 a.m. to discuss real estate matters pursuant to RCW 42.30.110(b)(c) and personnel matters pursuant to RCW 42.30.110(g) and no action was taken. 

Commissioner Oliver recognized Executive Director Paulson, who welcomed meeting attendees, as follows:

 Jerry Oliver Port Commission President
 Brian Wolfe Port Commission Vice President
 Nancy Baker Port Commission Secretary
 Larry Paulson Port Executive Director
 Todd Coleman Port Deputy Executive Director
 Maggie Smith Port Director of Finance
 Curtis Shuck Port Director of Economic Development & Facilities
 Patty Boyden Port Director of Environmental Services
 Addison Jacobs Port Director of Public Affairs
 Alicia Lowe Port Legal Counsel
 Michelle Allan Port Executive Assistant
 Katy Brooks Port Community Planning & Outreach Manager
 Kathy Holtby Port Real Estate Manager
 Mike Schiller Port General Manager
 Kim Shaffer Port Project Manager
 Theresa Wagner Port Communications Manager
 Lisa Willis Port Environmental Project Manager
 Julianna Marler Port Senior Manager of Contracts
 Todd Krout Port Facilities Manager
 Dawn Egbert Port Contracts Manager
 Rick Cline Port Procurement Manager
 Katie Odem Port Communications Specialist
 Jonathan Eder Port Human Resource Manager
 Gay Lincoln Machinists Union
 Mark Paulsen Columbia River Pilots
 Michael Davis Columbia River Pilots
 Jay Hamachek Great Western Malting
 John Culi Great Western Malting
 Jon Yamashita MacKay & Sposito, Inc.
 Bob Carroll IBEW Local 48
 Ralph Edwards SCORE
 Brad Clark ILWU Local 4

APPROVAL OF MINUTES

Regular Meeting of December 14, 2010

On motion by Commissioner Baker, seconded by Commissioner Wolfe and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the minutes of the December 14, 2010, regular meeting.

OPEN FORUM

Commission President Oliver invited comments from the audience. 

Great Western Malting Update

Jay Hamachek, Director of North American Business Development, presented a powerpoint presentation on Great Western Malting and updated the commission on what the company has done to prepare for the port’s West Vancouver Freight Access project. He discussed project drivers, project segment features, and current status. He stated Great Western Malting and the Port of Vancouver continue to work closely together to minimize the project’s impact. He added that Great Western Malting will be ready for the handover of the affected property on March 31, 2013. 

 
Washington Public Ports Association “Port of the Year” Award

Executive Director Paulson presented to the commission the “Port of the Year” award the Port of Vancouver USA received at the recent Washington Public Ports Association Annual Meeting.  He indicated the port and its staff has worked hard and greatly appreciates being named port of the year.   

No additional comments were received at this time.

ACTION ITEMS

Public Works Contract for Bid #10-21: 2011 Maintenance Dredging/Berth Deepening

Senior Director of Marketing and Operations Smith presented the staff report, as contained in the agenda packet and discussed the proposal with the commission. 
General Manager Schiller provided additional information to the commission.  He added that this project is part of the port’s annual berth maintenance to ensure water depths at the port’s berths are properly maintained.  Additionally, he stated that some berth deepening is planned to coincide with the recently completed deepening of the Columbia River navigation channel. 

On motion by Commissioner Wolfe, seconded by Commissioner Baker, and carried unanimously, the Port of Vancouver USA Board of Commissioners authorize the Executive Director to execute a public works contract with Marine Industrial Construction, LLC the lowest responsive and responsible bidder, for the 2011 Maintenance Dredging/Berth Deepening project for a not to exceed amount of $454,718.07 including Washington State Sales Tax.

United Grain Corporation Expenditure Requests for Reimbursement from the Repair and Replacement (R&R) Fund

Director of Finance Smith presented the staff report, as contained in the agenda packet and discussed the proposal with the commission.  She indicated that the Repair and Replacement (R&R) Fund was established in 1992 by the Dockage Collection Agreement between United Grain Corporation and the Port of Vancouver.  The agreement allows for payment of costs of capital improvement projects or special repair and replacement projects requested by UGC and approved by Port Commission or its designated representatives.

In May of 2008, Director Smith stated UGC provided prior notification for anticipated expenses for improvements to the “A” House conveyor system.  Improvements have been completed and UGC has submitted a “Notification for Request for Expenditure” from the R&R Fund in the amount of $3,889,545.42. 

Director Smith added that UGC is also submitting a “Notification for Request for Expenditure” from the R&R Fund in the amount of $2,977,178.22.  The repair was an emergency repair of the PECO and the dockage agreement does not require prior notification before incurring expenses. 

As of November 30, the balance of the R&R Fund was $6,584,852.92.  Total request for reimbursement from the R&R Fund is $6,866,723.64.  Director Smith stated as additional R&R funds become available, the remaining $281,870.72 (the difference between the fund balance and the reimbursement request) will be paid. 

Commissioner Wolfe asked if this is in the budget and Director Smith stated that the funds are in a separate fund and do not impact the budget.  

On motion by Commissioner Baker, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners approves UGC’s “Requests for Expenditure” from the Repair and Replacement (R&R) Fund in the amount of $6,866,723.64.

Resolution 7-2010 Prepayment of Claims

Executive Director Paulson presented the staff report, as contained in the agenda packet, and discussed the proposal with the commission.   He stated expenditures of funds for operating expenses and other purchases that are prior to commission approval of claims is sometimes necessary by statutes, contractual agreements and other requirements. In order to expedite payment of claims, RCW 42.24.180 allows the commission to authorize issuance of checks in payment of claims prior to commission approval. Director of Finance Smith stated that most of the expenditures are payroll and utilities related. 

After brief discussion with staff and on motion by Commissioner Wolfe, seconded by Commissioner Baker, and carried unanimously, the Port of Vancouver USA Board of Commissioners adopted Port of Vancouver USA Resolution 7-2010 providing for prepayment of claims.

Resolution 8-2010 Authorizing the Executive Director to Sell and Convey Port Property of $10,000 or Less in Value

Executive Director Paulson presented the staff report, as contained in the agenda packet, and discussed the proposal with the commission.  He stated that RCW 53.08.090 allows a port commission, by resolution, to authorize the managing official of a port district to sell and convey port district property of $10,000 or less in value. He indicated Resolution 8-2010 would be in force for not more than one calendar year from the date of the resolution and may be renewed from year to year.

On motion by Commissioner Baker, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners approved and adopted Port of Vancouver USA Resolution 8-2010 authorizing the executive director to sell and convey port district property of $10,000 or less in value.

Resolution 6-2010 - HRA VEBA Benefit

Executive Deputy Director Coleman presented the staff report, as contained in the agenda packet, and briefly discussed the proposal with the commission.  Human Resources Manager Eder provided additional information and shared that the HRA VEBA Trust provides public employers a method to provide employees supplemental benefits.  He indicated a health reimbursement arrangement (HRA) is a type of health plan that reimburses out-of-picket healthcare costs incurred by employees, their spouse and qualified dependents.  He added that all contributions, investment earnings, and withdrawals (claims) are tax free. 

Human Resources Manager Eder indicated under the current plan, each employee receives a bi-monthly contribution based on 2.5% of their salary.  He added that this contribution is placed into an HRA VEBA account that employees access and manage.  Employees will receive no more than $2,500 and no less than $1,000 annually. 

Resolution 6-2010 amends the current plan and contribution method so all eligible employees receive $2,500 annual regardless of salary. It also adds the Port of Vancouver Commission to the eligible employee group.  This would allow the commissioners to participate in the plan at the same level as all other eligible employees. 
  
Commissioner Wolfe asked why the commission was not originally included in the plan and Human Resources Manager Eder shared his understanding as did Commissioner Baker.  

 After discussion with staff and on motion by Commissioner Baker, seconded by Commissioner Oliver, and carried 2-1 (Commissioner Wolfe voted nay), the Port of Vancouver USA Board of Commissioners approved and adopted Port of Vancouver USA Resolution 6-2010 changing the HRA VEBA annual contribution to $2,500 for all eligible employees and adding the commissioners to the HRA VEBA plan effective January 1, 2011. 

UNFINISHED BUSINESS

Ports Contract Logs

Executive Director Paulson presented the port contracts logs and discussed them with the commission.  He mentioned the logs are presented on a regular basis to provide information regarding contracts executed under executive director authority and to answer any questions the commissioners might have. The commission had no questions.

Tax Levy Follow Up

Executive Director Paulson stated at the November 9, 2010 meeting, there was discussion on the issue of a tax levy.  After extensive discussion with the commission, the board decided to bank the 1% tax increase.  Executive Director Paulson indicated that a banking resolution would have no effect on the final outcome and asked for clarification in the way of a vote to affirm the tax levy will be the same rate as the previous year. 

After seeking further clarification from Legal counsel Lowe, Commissioner Wolfe moved to strike the requirement that the 1% increase in taxes be banked and the tax levy would remain at the same rate as the previous year.  Commissioner Oliver seconded the motion and the motion carried unanimously. 

No additional unfinished business was considered at this time.

NEW BUSINESS

Regional Transportation Council Alternate

Executive Director Paulson indicated the Ports of Camas/Washougal and Ridgefield support the decision to add an alternate to the Regional Transportation Council.  Both ports support Commissioner Jerry Oliver acting in that capacity. 

On motion by Commissioner Wolfe, seconded by Commissioner Baker and carried unanimously, the Port of Vancouver USA Board of Commissioners approved the decision for Commissioner Oliver to act as alternate on the Regional Transportation Council. 

Second Meeting in December

Executive Director Paulson stated at the last commission meeting there was discussion about the possibility of not holding the second commission meeting in December. 

After brief discussion, on motion by Commissioner Baker, seconded by Commissioner Wolfe and carried unanimously, the Port of Vancouver USA Board of Commissioners cancelled the second meeting in December.  If a special meeting is necessary, Executive Director Paulson stated a meeting will be scheduled and proper notice will be provided.  
ACCOUNTS PAYABLES

Executive Director Paulson presented the staff report, as contained in the agenda packet and discussed the payables with the commission.  Following further discussion with Finance Director Smith and on motion by Commissioner Baker, seconded by Commissioner Wolfe, and carried unanimously, the Port of Vancouver USA Board of Commissioners ratified and approved payment of November 2010 Vouchers 047425-048099 in the amount of $7,480,635.97 and November 2010 Payroll Checks 005432-005434 and Direct Deposits D22697-D22883 in the amount of $347,061.99.

EXECUTIVE DIRECTOR REPORT

Project Updates

Project updates were provided on the following port projects:

• Keyerea Energy
• Terminal 2 Shred Berm Expansion
• Mobile Crane Road
• Farwest Steel Due Diligence
• Waterfront Access Project

Executive Director Paulson reported that he attended and/or participated in the following:
• Clark County Governmental Affairs Roundtable, November 9
• WPPA Annual Meeting in Tacoma, November 16-19
• Met with Karen Schmidt, Executive Director of the Freight Mobility Strategic Investment Board, November 29
• Met with Commissioner Baker, November 30
• Meeting at the Port of Seattle on rail issues, December 2
• Freight Mobility Strategic Investment Board Meeting in Everett, December 3
• Meetings in Olympia with Senator Zarelli and Senator Haugen, December 6
• Met with Eric Johnson in Olympia, December 6
• Met with Rick Wickman in Olympia, December 6
• Met with customers in Vancouver British Columbia, December 6-9
• Attended Columbia River Crossing Project Sponsor’s Council, December 10
• Met with Commissioner Oliver to discuss today’s meeting agenda, December 13

COMMISSIONER REPORTS

Commissioner Baker reported that she attended and/or participated in the following:
• Met with Executive Director Paulson, November 30
• Met with Deputy Executive Director Coleman, November 30
• Met with Communications Manager Wagner, December 1
• Met with Community Planning & Outreach Manager Brooks, December 3
• Met with Human Resources Manager Eder
• Vancouver Downtown Association Meeting
• Washington Public Ports Association Annual Meeting, November 16-19
• Regional Transportation Council Meeting, December 7
• Burlington Northern Santa Fe Holiday train, December 7
• Port of Vancouver tenant holiday event, December 9

Commissioner Wolfe reported that he attended and/or participated in the following:
• Met with Executive Director Paulson
• Met with Deputy Executive Director Coleman
• Met with Human Resources Manager Eder, December 7
• Washington Public Ports Association Annual Meeting, November 16-19
• Schwabe Holiday event, December 2
• Port of Vancouver tenant holiday event, December 9
• Seafarers Holiday dinner, December 9

Commissioner Oliver reported that he attended and/or participated in the following:
• Washington Public Ports Association Annual Meeting, November16-19
• Regional Transportation Council Meeting, December 7
• Port of Vancouver tenant holiday event, December 9
• Met with Executive Director Paulson regarding today’s agenda, December 13

UPCOMING EVENTS

A list of upcoming events was displayed on the screen for viewers to see staff activities and events. Dates, times, locations, and contact information were also displayed.  

RECESS

The regular meeting recessed at 10:40 a.m. to sign documents and reconvened into a workshop at 10:55 a.m. regarding Renaissance Waterfront Landing and Area.

WORKSHOP

Community Planning and Outreach Manager Brooks introduced Elizabeth Jordan, a City of Vancouver Parks Department staff person who conducted a brief workshop regarding the Renaissance Waterfront Landing.  She shared the overall plan and proposed scheme with the commission and provided ideas and examples of what the space might look like.  In particular, she presented visuals of the following proposed areas:

• Aerial view
• Main Street Promenade
• Family play and active recreation area
• Interpretive opportunities – cultural history
• Riparian habitat
• Stormwater treatment sustainability

Ms. Jordan indicated three stakeholder meetings and two public meetings were held in October that provided for public comment opportunities. 

As part of the presentation, Director of Economic Development and Facilities Shuck discussed the overall property and waterfront area.  He identified boundary line adjustments, street vacations, lease amendments, land exchanges, and easements that will be required as well as the timelines for which these events are anticipated to take place.  The workshop concluded at 11:39 a.m.

ADJOURNMENT

There being no further business to come before the Port of Vancouver USA Board of Commissioners, the December 14, 2010, regular meeting was adjourned.

PORT OF VANCOUVER USA
BOARD OF COMMISSIONERS

 
Michelle Allan, Executive Assistant, 
December 14, 2010, Regular  
Port of Vancouver USA Board of 
Commission Meeting