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Commission Meeting Minutes
March 22nd, 2010
COMMISSION MEETING MINUTES
March 22, 2010
9:30 a.m.
PRESENT:
George Schoenfeldt, President Pat Deja, Marketing & Property Mgr
Jim McEntire, Vice-President Doug Sandau, Airport/Marina Mgr.
John Calhoun, Secretary Holly Hairell, Human Resources Mgr William James, Director of Finance Dave Neupert, Port Attorney
Dave Hagiwara, Dir Trade & Dev
.
CALL TO ORDER – OPEN SESSION
PLEDGE OF ALLEGIANCE
I. MINUTES OF MARCH 8, 2010 COMMISSION MEETING
Commissioner Calhoun stated he reviewed the March 8, 2010 Commission Meeting Minutes, found them to be accurate and made the motion to accept as presented. Commissioner McEntire seconded and the motion passed unanimously.
VII. OLD BUSINESS
B. Harbor Works Report (out of order)
Jeff Lincoln, Harbor Works Executive Director, provided a due diligence status report which included a Power Point presentation (attached). Complete information on Harbor Works is available on their website at info@paharborworks.org. Mr. Lincoln stated they are actively negotiating with Rayonier and accelerating the process at Rayonier’s concurrence to move forward. There are many decisions that have to be made by Harbor Works and by the Port, the City, Department of Ecology, DNR, and the Tribes. He indicated they will not be able to close until all the loose ends are tied up.
Mr. Lincoln explained the varying levels of contamination and reported there is more contamination on the west side than the east. Harbor Works and Rayonier expect the clean up standards will be very high which Rayonier will be required to comply. There is a timeline agreement of three years between Rayonier and DOE which creates a period for more study preceding actual clean up. The agreement will be signed later this week by DOE. It may be possible to move forward with some clean up in some areas while other areas are being studied. It was emphasized that the entire water cleanup is not Rayonier’s problem.
Mr. Lincoln summarized the five redevelopment scenarios known as Alternatives A, B, C, D and E. Alternative A is general development with marine, retail and industrial uses, Alternative B includes retail and commercial development and a cultural research facility and museum east of Ennis Creek, Alternative C includes marine industries, a marina and general economic development on the east side. The Port prefers Alternative D which includes Port industrial redevelopment on the west side and a cultural reserve on the east side. Alternative E was recently added and favors no development, but creates an open space park and public access. Mix and match scenarios with Alternatives A through D are possible. Discussion followed on the difference between aquatic and land clean up and Mr. Lincoln indicated that before the marine environment can be cleaned up, Ennis Creek, which runs through the property, has to be addressed. He reiterated that it is possible that Harbor Works could move forward with some clean up in known contaminated areas while other areas are being studied. Further discussion followed on the level of clean up standards for industrial or unrestricted use of the property. Mr. Lincoln emphasized that they are not finished with the risk analysis, but he is confident in the people working for them.
II. EARLY PUBLIC COMMENT SESSION
Ray Thomas, Carlsborg resident and JWM slip holder, spoke and said that he wanted to provide some thoughts before the agenda item on marina market and cost analysis. He looks at slip holders as customers of the Port and boaters in turn provide service to businesses in town. Mr. Thomas mentioned that based on his experience the average boat slip holder pays for insurance, maintenance, haul outs, fuel providing anywhere from $1,000 to $20,000 per year to the economy. He said that he is concerned that the audience is not present in past meetings when discussing critical issues such as boat rates and suggested as a form of customer service that slipholders be notified of meetings concerned with rates. Mr. Thomas recommended a citizens advisory group with representatives from boating organizations to provide input. Staff noted that the agenda is published in the newspaper and is found on the Port website.
III. PROPERTY
A. Marketing Update
Pat Déjà, Marketing Manager, provided a brief report on some of his activities in the last month. Major emphasis has been on targeting alternative energy companies that may be interested in coming to the area. He has had several meetings with Battelle and has developed a list of Hanford contacts. Mr. Deja commented on a meeting in Olympia with the Department of Commerce Business Solutions Manager regarding business contacts and establishing relationships with company relocations. He has met with several prospective tenants outside the county and one from California. There is a need for a 15,000 to 30,000 square building for industrial properties. He provided information on outreach meetings and indicated he would provide more information in the near future on the game plan related to the Work Plan.
Commissioner Calhoun indicated he is a fan of alternative energy and stated he has thought that the Rayonier site might have potential in that regard. He mentioned the EDC Economic Summit whose purpose is to focus the community on a set of priorities and emphasis for moving forward. He stated it is important that if the Port feels that alternative energy is fruitful for investment, he hopes the Port is organized to bring that to the Economic Summit. He noted there has not been any discussion with the Commission on whether that should be the emphasis. Commissioner McEntire stated he looks forward to the Work Plan report at the next meeting and he suggested having a few pages of thought that would help the Commission develop a marketing strategy that they may want to discuss.
IV. MARINAS
A. Rate Reviews - Methodology
Bill James, Director of Finance and Administration, presented a market and cost analyses in preparation for the Port Angeles Boat Haven (PABH) and John Wayne Marina (JWM) rate reviews which he anticipates will be done in the second quarter.The last comprehensive rate review was in 2005. He noted that typically market and cost-based analysis are included. The market-based comparisons include moorage rates surveys from 20 other marinas around Western Washington. The cost-based analyses concentrates on financial summaries over the last five years at PABH and JWM and considers operating receipts/expenses, capital expenditures and debt service payments made over the period analyzed. Additional addressed charges include transient moorage, electrical rates, live-a board permits, shower facilities, hoist facilities, storage boxes, launch ramp fees and dry storage charges. A chart was provided showing the rates for a 40’ boat from the year 2000 to 2010. At PABH the rate was $2.95 per linear foot in 2000 and $5.98 per linear foot in 2010. For JWM the rate was $4.52 per linear foot in 2000 and $7.71 per linear foot in 2010. Mr. James said this is for information only and we are not making any recommendations at this meeting. It was noted advisory groups were included in 2005.
Commissioner Calhoun encouraged the process to include advisory groups to get full participation from boat owners. He also suggested having another economic impact study to revisit in terms of today’s market conditions and that it should include assessment of marinas. Commissioner McEntire encouraged an extensive outreach process so that customers can fully understand what we are doing and how we are doing it. He suggested a cost analysis along the lines of the way in which we budget.
V. AIRPORTS
A. Small Community Air Service Grant Marketing Position
Doug Sandau, Airport/Marinas Manager, stated that it has been reported that having a small commercial air service to a community represents approximately $19 million per year directly back into the area. Kenmore Air has been in Port Angeles since 2005 and they have worked diligently but have yet to realize their market goal. Mr. Sandau pointed out that a Small Community Air Service Grant was awarded March 9, directly in support of increasing passenger service to the area. The next step is marketing and hiring an individual to work closely with the Port, Kenmore, City of Port Angeles and City of Sequim. A scope of work has been drafted, contractual elements are under review with the City and County and we are in the process of finalizing a RFQ for a marketing representative. The job will be advertised for two weeks closing April 16, interviews conducted the following week, and the selected representative under contract May 1.
VI. NEW BUSINESS
A. Economic Summit Report
Linda Rotmark, Executive Director of the EDC, said that she wanted to go on record to say how great it was to go the Pen-Ply ribbon cutting on Saturday. It was a great group of people, lots of good words and good feeling and culminated in community support. She thanked the Port for their work in making that happen. Commissioner Schoenfeldt said that he appreciates the EDC role and that it was a situation in which the Port, the EDC, County, City and State worked together in the process to make it happen and he thanked Linda and the work of the EDC.
Ms. Rotmark outlined the three phases of the Economic Summit conducted by consultant John White of Berger ABAM. The purpose is to create a plan for jobs creation in Clallam County and to better coordinate efforts of local governments. Phase 1 is a public meeting April 1 from 6 – 8:30 p.m. at the Red Lion Hotel. Phase 2 is by invitation only on April 2 for the seven contract partners: Port, County. City of Port Angeles, Olympic Medical Center and PUD plus cities of Sequim and Forks. There will be two representatives from each of the organizations and two interviewers for about an hour long session. There will also be two representatives each from the Jamestown and Elwha Tribes, two from education and six business leaders. Phase 3 is scheduled for May 11 at the Lincoln Center and is an open meeting from 11:00 a.m. until 3:00 p.m. in which the draft plan will be presented for further input. The action plan is due May 21.
Commissioner Calhoun said he feels the EDC has done a good job of getting organized and it is an opportune time to get on board. He commented that a good balance was struck involving the principals that have fiduciaries responsibilities and the public at large. Commissioner McEntire commented the time is ripe for a grand conversation of where we are and where we want to be in five to ten years. He commended Ms Rotmark for getting the right folks involved to ponder how we can interlock efforts in going forward.
VII. OLD BUSINESS
A. Log Ship Reports: Financial & Operational
Dave Hagiwara, Director of Trade and Development, referring to a chart of preliminary revenue estimates, provided a brief report on the recent log ship activity. The Koombana Bay loaded approximately 2 million board feet March 8 through 10 and was the first freighter to load in ten years at the Port’s Terminal 3. He stated it was important to note that not only did it touch the Port at the marine terminal in the form of wharfage, dockage, security, etc., but also because of the nature of the activity, the Port handled all logs at T-7 which means the logs are in-bound, round-boomed and put into the water. Mr. Hagiwara indicated there have been many positive letters from customers, Merrill & Ring (supplier of logs) and positive feedback from the stevedoring companies. Not only was the ship loading a big impact on Port crews, but there were three gangs of longshoremen per day over the 3-day period that created job opportunities for them. The Port made $30,705.00 from service, facilities, wharfage, dockage and security plus an additional $37,627.00 for the log handling for a total of $68,332.00. Mr. Hagiwara announced that two additional log ships are expected later in the spring with the same types of volumes. Discussion followed on forest product log exports, market elasticity and the complicated global economy. Commissioner Calhoun noted that Marine Terminal Manager Mike Nimmo was much more accurate in his estimates than the Commission gave him credit during budget discussions and they need to find a way to provide some positive feedback to him.
C. Congressional Visit Report
Commissioner McEntire reported on the recent Congressional visit to Washington, DC in which he and Executive Director Robb participated. The timing of the visit was planned in conjunction with the National League of Cities and Association of Washington Cities and the message they tried to convey was that the Port and the City of Port Angeles are working closely. They met with Senators Cantwell and Murray and staffs. Some of the issues discussed include the project to rebuild the terminal for the Blackball Ferry in conjunction with the City’s planned waterfront promenade, the need to capitalize additional industrial space for ACTI as they have the potential to get a follow-on contract with Lockheed for the F-35 fighter, surface transportation funding, FIA eligibility for grants, and the Rayonier Mill site decision and the potential for Brownfield grants from the EPA. Commissioner McEntire indicated that he feels they got their points across well and that they had a very productive set of conversations.
VIII. PUBLIC COMMENTS SESSION
None.
IX. ITEMS NOT ON THE AGENDA
None.
X. NEXT MEETING – APRIL 12, 2010
XI. EXECUTIVE SESSION
The Board of Commissioners will now move into executive session to consider three property items, no litigation items, and no personnel items. These items are discussed in executive session in accordance with title 42.30.110 of the Revised Code of Washington. Commissioner Schoenfeldt estimated that the executive session will conclude at 12 noon and that no action will be taken.
XII. ADJOURN
Commissioner Schoenfeldt adjourned the meeting at 12:20 p.m.
PORT OF PORT ANGELES
BOARD OF COMMISSIONERS
___________________________
George H. Schoenfeldt, President
__________________________
John M. Calhoun, Secretary
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