Saturday, June 20, 2015

PORT ANGELES DIGEST: AS MCALEER WAS TESTIFYING IN CONGRESS ABOUT COMPOSITES RECYCLING...

COUNTY OFFICIALS WERE FEUDING OVER GRANTS.

Editorial Comment: In this week's edition of the {Port Angeles Digest}. Two lead stories were making headlines. Starting on Monday with a special session of the Port Commission. The Commissioners heard a report from Port Commissioner Colleen McAleer regarding her testimony she gave to congress, she was kind enough to share her testimony along with her report she gave during the Port Commission on Monday:

Oral Testimony of Colleen McAleer Commissioner Port of Port Angeles Port Angeles, Washington Before the Senate Committee on Energy and Natural Resources June 9, 2015
Chairman Murkowski, Ranking Member Cantwell and distinguished members of the Committee. Good morning and thank you for allowing me to speak before you.
Port Commissioner,
Colleen McAleer
My name is Colleen McAleer.  I am a combat veteran, mother of two boys, and small business owner, but I offer my testimony today in my capacity as a Commissioner for the Port of Port Angeles. We are located in Clallam County on the northern portion of Washington State’s Olympic Peninsula. Today I will talk to you about the effort we’ve spearheaded, the Composite Recycling Technology Center (or CRTC) where industry, small business, academia and government converge to reduce energy use and costs and strengthen U.S. manufacturing.
Carbon fiber is replacing other materials in products that benefit from high strength to weight ratios. It’s a $27 billion dollar global industry and growing.  Lightweight carbon fiber composites reduce the weight of a product, thus reducing energy consumption.  However, they are expensive to produce and do not deteriorate, creating long term disposal issues.  Twenty-seven million pounds end up in U.S. landfills each year; two million from Washington State alone.  Our Port is well on its way to providing a solution to this problem through a public-private partnership, the Composite Recycling Technology Center.
Our Port has headed an effort to recycle the production scrap of carbon fiber manufacturing processes, a first-of-its-kind recycling center. There are research efforts in the U.S. and Europe addressing so-called end-of-life carbon fiber recycling—a more complex and energy-intensive process—but we will first focus on the low hanging fruit of recycling and repurposing production scrap.
Carbon fiber products already reduce energy consumption by reducing weight in industries from transportation to sporting goods.  Recycling carbon fiber composites will drastically reduce the energy required for manufacturing.  The recycled carbon composite in the CRTC approach will use only 6% of the energy required to produce virgin carbon fiber fabrics.
In my rural, economically-distressed county, we have several manufacturers that use advanced composites and are dealing with this very issue.  They make yachts, cutters, snowboards, aerospace parts and more.  Also located in our county is the Pacific Northwest National Laboratory’s (PNNL) Marine Science Lab; it has permitted in-water facilities to test carbon fiber wave and tidal energy technologies.  Last year, our community was an integral part of a West Coast application for the $70 million Department of Energy award for a composites institute.  Our multi-state team lost that competition to Tennessee, but the program represented a compelling solution for industry and small businesses, so we have carried on without the DOE funding.
Our Port has received preliminary award of $4 million from the US Department of Commerce, Washington State, and Clallam County.  In addition, the Port has provided the space for the facility and committed $1.5 million in cash for its development, an advanced manufacturing program in the works since 2012.
The 25,000 square foot facility will be a shared equipment center that serves four functions. It will accept uncured scrap carbon fiber fabric and remake it into a useable form.  It will manufacture and sell secondary repurposed products.  It will serve as a workforce training space for local colleges.  Most importantly, it will serve as an industrial-scale shared equipment space for entrepreneurs and universities.
These functions will create a locally trained workforce, drive accelerated technology transfer with a national reach, and deliver a significant economic impact to our struggling county.
I sit on the Executive Board of our state’s Center of Excellence for Aerospace and Advanced Manufacturing. I often hear business owners say they can’t find employees with the needed skillsets. This Center of Excellence has aggressively coordinated with the state’s technical and community colleges to address this issue.  Washington state community colleges deliberately design their curriculum to match local employers’ requirements.  In fact, colleges often buy equipment identical to that used by manufacturers in their facilities. Standardization through certification programs serve two constructive purposes.  First, it develops the certification programs employers need.  Second, it enables employers to readily hire qualified workers.
At the CRTC, we have a parallel workforce training effort.  Peninsula College is relocating their Advanced Manufacturing Composite program and equipment to our facility.  The CRTC will house both the business innovators and their future workers.
The CRTC will accelerate commercialization of technologies from the lab to the manufacturing floor.  Small businesses will lease the CRTC lab space to develop proprietary products at our shared equipment center.  They will also have access to CRTC material and process experts, accelerating the development process.  We believe the reduced costs and resident expertise will produce innovation and induce capital investments in carbon fiber technologies.
Mervin Manufacturing, a local company with $13 million in annual exports, makes skis, skateboards and surfboards, and several brands of snowboards from virgin carbon fiber.  They intend to further innovate in the Center’s maker space in order to replace virgin carbon fiber with recycled carbon fiber for their snowboard bindings, skateboards, and surfboard fins.
We currently have five major universities from three corners of the country that intend to send researchers and students to the Center. They intend to demonstrate and commercialize their technologies to the CRTC community.
At Washington State University, we intend to leverage the Composite Material Engineering Center. It has a 35-year history of commercializing composite wood products like the plastic lumber materials used in decking. We are finalizing an agreement with WSU to test CRTC products for certification in the construction industry at their facility.
CRTC efforts will re-shore jobs back to the United States.  As an example, Batson Enterprises is a local wholesale supplier of fishing rods.  They currently purchase component composite and aluminum parts overseas in order to keep their overall costs competitive.  By partnering with the CRTC for product development using our recycled carbon fiber, Batson Enterprises will be able to manufacture those components with higher quality materials that were formerly cost-prohibitive.
The CRTC will be a small step in bringing back American manufacturing. We can’t and don’t want to compete with foreign countries on labor costs.  Recycled carbon fiber lowers material costs, allowing companies to profit while paying a living wage.
I thank the committee for considering legislation supporting carbon fiber recycling.  I look forward to your questions.

Report McAleer gave to the Port on Monday:

Commissioner McAleer’s report on:
Hearing on Energy Accountability and Reform Legislation
June 9, 2015
Senator Cantwell is the ranking member of the U.S. Senate Committee on Energy and Natural Resources. Senator Cantwell asked me to testify on behalf of the Port and our partner’s efforts associated with the Composites Recycling Technology Center. A copy of my oral testimony is attached.   The Energy Committee works on far-reaching legislative activity covering the following major areas:
Energy resources and development, including regulation, conservation, strategic petroleum reserves and standards;

  • Nuclear energy; 
  • Indian affairs; 
  • Public lands and their renewable resources; 
  • Surface mining, Federal coal, oil, and gas leasing; and 
  • Water resources.

Five energy experts, including the Department of Energy’s Undersecretary for Science and Technology, Lynn Orr, testified at the hearing as well about national level energy issues and programs supported through the Department of Energy funding.  Undersecretary Orr’s office oversees 14 of the 17 National Labs to include Pacific Northwest National Laboratory that has their Marine Science Lab in Sequim. This hearing was the fourth and final hearing in a series specifically addressing energy legislation and authorization. Forty two different bills are being considered as part of the legislation. One of those bills is the Carbon Fiber Recycling Act of 2015.
Boeing also submitted written testimony about the importance of the legislation.
I had eight meetings in two days. I met with twelve staff members from four senator’s offices and Derek Kilmer’s office.
The importance of this trip to our community is that our efforts have been highlighted on a national stage as an example of innovation supporting advanced manufacturing.
I’d like to thank Port staff, our technical and business consultants and my fellow commissioners for driving this effort. The work is just beginning though. Once the Composite Recycling Technology Center is officially stood up and begins operations the real work will begin to become a transformational program for our community.


Editorial Note: While that drama was playing out in D.C. locally, the feud between the County Commission, and County Treasure was heating up like the sunny days of summer. Which were reflected on the local media headlines which I collected:

Clallam commissioners to issue $1.3 million in warrants for Opportunity Fund grants despite treasurer's objections
(PENINSULA DAILY NEWS) Clallam County commissioners will proceed to issue $1.3 million in disputed warrants from their Opportunity Fund, despite the elected county treasurer's refusal to approve them.


Clallam prosecuting attorney says treasurer must release funds; Barkhuis seeks attorney general's intervention
(PENINSULA DAILY NEWS) The Clallam County treasurer has no legal reason to delay paying $1.3 million from the Opportunity Fund to support a composites recycling center and a waterfront park, the county prosecutor has decided


Candidate weighs in on prosecutor’s opinion
(PORT O CALL) Bryan Frazier, candidate for county commissioner, weighs in on county prosecutor’s opinion in re treasurer’s refusal to honor grants to Port of Port Angeles and city of Port Angeles which she feels were made in violation of the law and county policy.  Here’s Bryan’s take on it.

Treasurer rejects warrants; seeks proper review by Selinda Barkhuis
By Selinda Barkhuis, WSBA 24139, Clallam County Treasurer
(PORT O CALL) Last month, I wrote about the Clallam County Commissioners’ attempt to give away $3 million from the County Opportunity Fund in unanticipated, non-budgeted, and no-strings-attached grants ($1 million to the Port of Port Angeles, $285,952 to the City of Port Angeles, and $1.7 million in “Undesignated Projects”), without holding prior public hearings to change the budget and without any written contracts to spell out what the County taxpayers are receiving back for these gifts of their public funds.  The $3 million being used to pay for these grants had, up to then, been committed to repaying the $10 million debt to the State that will be incurred in the construction of the Carlsborg Sewer.---read more

Editorial footnote: Many of the candidates that responded to my question on the decision of the County Treasure to withhold these funds were favorable to that decision. So why is the current County Commission seems hell bent in giving this grant funding? I have a hunch that the Treasure will be found correct in her decision, and it will end up being drugged in a long court battle. Still no word on what the State Attorney Office has to say on the matter. So I would keep my eyes on the State Attorney General office.
So, I hope we get the Composite Recycling Center here in Port Angeles, but it has to be operated by private business, not under governmental management. As for the feud between the County Commission and County Treasure, it will be interesting to watch how all that plays out. Many times something like this could end up causing a bad working environment, and resentment all around, usually end up costing someone to loose their job, or cause them to resign out of principle.  ---Peter Ripley, Publisher


WHAT'S ON TAP FOR NEXT WEEK?

PORT TO DEFEND FORMER PORT DIRECTOR CLYDE BOODY
During their regular session on Tuesday the Port will issue DEFENSE AND INDEMNIFICATION OF FORMER EMPLOYEE.
According to staff memo provided: Defense and Indemnity: RCW 53.08.208 authorizes the Port to defend and indemnify Port employees, officers and agents against claims arising from their good faith
performance or failure of performance in their employment with or duties for the Port.
According to the statute, the Port Commission may grant the request of any such Port
employee, officer or agent, for counsel of the Port’s choosing to defend any such claim.
Additionally, the statute authorizes the Port to pay attorney fees and, if the employee,
officer or agent was acting in good faith and within the scope of his or her employment,
the defense costs and any settlement or judgment amount awarded to the claimant.
On January 13, 2015, the Port Commission adopted Resolution No. 15-1096,
confirming the Port’s intention to defend and indemnify its current and past employees
and officers against claims arising from their good faith performance or failure of
performance of their duties to the Port. According to that resolution, whenever any
action, claim, or proceeding is instituted against any individual who is or was an
employee or officer of the Port, arising out of that individual’s performance or failure of
performance of employment with, or duties for, the Port, and if the Port Commission
determines such employee or officer was acting in good faith and within the scope of his
or her employment with or duties for the Port, the Port Commission shall grant a request
by that individual that the attorney of the Port’s choosing be authorized to defend said
action, claim or proceeding, and the costs of defense, attorney fees, and any obligation
for payment arising from such action, claim or proceeding not otherwise paid by
insurance shall be paid from the Port’s funds.
Claim Against Past Executive Director: Past Port Executive Director Clyde Boddy has
been named as one among multiple defendants in a lawsuit filed in Clallam County
Superior Court, under case number 14-2-00407-1, involving real property interests near
the Port Angeles harbor waterfront. The Complaint alleges that Mr. Boddy is personally
liable for alleged damages to the plaintiff for an alleged taking of the plaintiff’s alleged
property rights. The claims against Mr. Boddy are related to a Short Plat and a Binding
Site Plan he signed on behalf of the Port in 2004, in his capacity as Executive Director
of the Port and not in his individual capacity.

See other items on the Port Agenda this coming Tuesday: http://www.portofpa.com/AgendaCenter/ViewFile/Agenda/06232015-107?html=true

COUNTY COMMISSION AGENDA HIGHLIGHT ITEM: 
Some noted budget hearing items from the County Treasure:
Prosecuting Attorney, Local Crime Victim Compensation – Change from 37.5 hours to 40/$2,582
Treasurer
 Part-time fiscal specialist III/$19,500
 Computer setup/licenses for new employee/$3,040
Treasurer, REET Electronic Technology – Part-time fiscal specialist III/$23,500
Treasurer, Operations and Maintenance – Change from 37.5 hours to 40/$1,399
Other local and regional meetings:


PORT TOWNSEND PARKS, RECREATION & TREES ADVISORY BOARD MEETING AGENDA
Agenda highlight: Lead Pool Operator New Hire Update

FROM ACROSS THE STRAIT
AGENDA - VICTORIA CITY COUNCIL
Agenda item highlight: Council is considering an application to authorize the creation of three small lots to enable the construction of one new small lot house.



Candidate questions and answers

This week's question was about the CSO project:
Candidates, This question is mostly directed to City Council candidates, but feel free to put your two cents in. You probably seen this item on this week's Port Angeles Digest, a item which is on Tuesdays City Council agenda:

"Summary: The Combined Sewer Overflow (CSO) Phase 1 project is the first of two parts of the City’s approved CSO Reduction program. A contract to construct Phase I was awarded to IMCO General Construction on August 7, 2012. Work on Phase 1 has been successfully completed, but during construction a dispute arose regarding the amount of sales taxes due to the State of Washington and the method of payment. The City and IMCO reached a settlement of that dispute on December 10, 2014. The settlement agreement was ratified by the City Council on December 16, 2014. This Change Order implements that settlement and allows the Phase I contract to be closed out.
 Recommendation: Approve and authorize the City Manager to sign a change order to increase the final contract amount to $17,976,027.52 to implement the settlement agreement ratified by the City Council on December 16, 2014. "

My question is what can you do to help getting funding for this project which now costing the local taxpayer well over 17 million. This is the largest undertaking perhaps not since 1914 when the street levels were raised to solve a sewage issue back then. Was Kilmer right to point out the faults of Victoria BC with their dumping raw sewage in the Strait, while we are struggling with a huge bill to fix our own? Should he be more focus in finding funding instead of pointing fingers up north? 
Shan Pak was the only responding Candidate:
This doesn't look like a well thought out undertaking. I suspect it will cost more and more in the future. I believe there must be a simpler and more effective solution in fraction of the cost. 
The bottom line is that we cannot go in debt as a city and potentially ruin its economic future.---Shan Pak, City Council Candidate
Now, I gave everyone on the mailing list plenty of time to answer the question regarding the ever increasing CSO project, which now is at little over 17 million, and probably end up being more when it is all said and done.

FROM OUR CONGRESSIONAL DELEGATION:








Other local news headlines:
 Port of Port Angeles schedule for KPly mill site cleanup advances


Lawmakers in Olympia grinding it out


Salmon slayers head north


FROM ACROSS THE STRIAT:
Now the westside: 20 potential sewage-plant sites selected   


Jack Knox: Stink of grow-op stigma lingers for homeowners


COLUMN: The perilous path of public perception



DAILY DEVOTIONAL
  
For what will it profit a man if he gains the whole world, and loses his own soul?
Mark 8:36 NKJV