Good morning and welcome to the Port of Vancouver Board of Commission meeting. Today is Tuesday, September 8th, and I'm calling the public meeting to order at 9:30 a.m. There was no executive session held this morning. Please note this meeting is being recorded. My name is Don orange. I'm the commission president for the Port of Vancouver. Joining me are Eric LaBrant and Commissioner Temple Linse. We are conducting a hybrid meeting along with our in-person meeting. We are having here. We are also set up so those who are not physically able to provide oral testimony can do so virtually. Please join me in the Pledge of Allegiance. Pledge allegiance to the flag of the United States of America and to the Republic. >> For which it stands. One nation under God, indivisible, with liberty and justice for all. >> To the agenda. First action item is approval of the minutes temple. >> Yes. So I did review the minutes and found them to be largely in order. There was a small clerical error on the the originally published minutes, which was simply a time error. So that has been updated. The error was listed that we signed documents at 952 and adjourned at 9:59 a.m. and or ten. It's been corrected to reflect the proper time, which is in the 9:00 hour, not the 10:00 hour. So with that change, I move approval of the minutes. >> I'll second the motion. All those in favor? >> Aye. >> Aye. Unanimously. Jonathan, I think we what is it? Open forum is next up. >> We didn't have anyone sign up for for virtual open forum. And we don't have anyone present who signed up to speak today. >> Okay. Hearing none. Next up are action items on the agenda. That's to you. >> Okay, so first on the agenda item today will be first action item. Today will be presented by Lori Taylor, our industrial and maritime sales manager. >> Thank you Jonathan. Good morning commissioners. First action item is to approve the First Amendment lease between the Port of Vancouver and Sigma D G Corporation. This lease agreement supports the port's strategic plan, goals to support growth and economic opportunities for existing tenants that utilize the port's property and infrastructure investments to create jobs and support the economy. Sigma D G Corporation, or Sigma, is North America's distributor of threaded fiberglass rods and connectors. They. This specialized product is used in a wide range of concrete product. Excuse me. Projects including roads, bridges, and mining. They also fabricate their own bolts and connectors. Sigma has been a port tenant since 2013, leasing 950. Excuse me, 9150ft² of warehouse space in building 2801. On May 14th of 24, Sigma entered into a five year agreement, expanding the lease premises to 15,750ft² to support the fabrication operations. The purpose of this amendment is to extend or expand their premises to 22,000ft². Effective August 26th, 2026. To accommodate their growing operation, Sigma has six full time employees on site at 2801 B through C. If approved, the new value of this lease over the remaining 33 months of the term is approximately 520 000, plus additional charges for leasehold excise tax, common area maintenance insurance and stormwater recovery fees. A portion of the lease revenue was included in the 2026 approved budget, and remaining revenue will be included in the 2027 preliminary budget. The recommendation is that the Board of Commissioners approve and authorize the CEO to sign the lease amendment of 2801, section B and C, Northwest Lower River road between the Port of Vancouver and Sigma D, G. >> Questions. >> Not a question, but a comment. Thank you for the presentation and I think it's great to see a tenant that's been here so long growing and expanding and that we're able to accommodate them. So very excited about that. >> I was just going to ask if I'm looking at this map correctly. This is our neighbor just yep. >> Just across the way. They do share a building with another tenant, but they have big plans. So we're here to support that. >> Fantastic. How was it? >> Thank you. Thank you. >> Well then, if there's no further comment, I move to approve the recommendation as presented by staff. >> I'll second the motion. All those in favor? >> Aye. >> Aye. Unanimously. Thank you. Jonathan. >> Okay. Our next agenda item today will also be presented by Lori Taylor. >> So this is to approve the First Amendment to restated ground lease between the Port of Vancouver and sell Copartnership, who's doing business as Verizon Wireless, the port. The port's strategic plan has established a goal to generate and sustain diversified revenues to promote the port's long term financial, sustainability and economic base. The Restated Ground Lease, effective January 1st, 2015, amended the original 1984 lease in its entirety. The restated ground lease between the port and Verizon Wireless. With approval of American Tower Delaware Corporation as Sublessee. The initial term was for a period of five years, with three additional automatic extension terms for five years each. Provided that Verizon timely exercised the option and was not in default. The purpose of this First Amendment is to approve the merger from Verizon Wireless, LLC to sell Copartnership doing business as Verizon Wireless. Verizon has timely exercised the first two extension options. The current term expires on January 1st, 2029. This First Amendment would also exercise the final five year option, extending the term through December 31st, 2034, and provide for two additional five year extension options under the same terms and conditions. Use of the premises is. The operation is for the operation of a communication tower outside of building 2001, including all necessary utilities on a site area of approximately 3154ft². Income to the port for exercising. The next five year extension option is $604,432, plus leasehold excise tax. Upon execution of the First Amendment, the port will also receive a $20,000 signing bonus. A portion of the revenue was included in the 2026 approved budget. The Board of Commissioners approve and authorize. The recommendation is that the Board of Commissioners approve and authorize the CEO to execute the First Amendment. Restated Ground Lease at 2001 Kotobuki Way between the Port of Vancouver and Selco partnership, Verizon Wireless. >> Any comments? Questions. >> Thank you. I have a question. So this is essentially restating because there's been a merger. So I know that the port does extensive vetting when we're taking on a new tenant in the first place when there's a merger. Can you talk about the vetting process for that new company coming in? >> Yes. In this particular case, we reach out to the state of Washington and get a confirmation of that merger. And it's a certificate of merger from the state of Washington, because they're a utility company. They're really difficult to move and change. They don't just pop up somewhere. So there's a with the stability of that, then we can rely on a certification with the state of Washington. >> Great. Thank you. And so then by then signing into this lease, they also commit to all of our business practices and, and following the lease as was given for the for the previous tenant. >> That is correct. >> Great. Thank you. >> Piggybacking on that. So that would include the the sublease. Yes. You're talking in the opposite direction, Mike. That would include the sublease to American Tower, Delaware Corporation. Yes. Okay. All right. That was my only question. I thought those were pertinent questions. We just watched Weyerhaeuser lease a section of their place to another paper company. Didn't go very well for some of the folks working there. Thanks for your attention on this matter. Does anybody want to move forward? There. >> Well, I'll move to approve the recommendation as presented by staff. >> And I'll second the motion. All those in favor? >> I. >> I, I. >> Thank you very much. >> Thank you. Lori. >> Okay. Our last agenda item today will be presented by Josh Pope, our engineering project manager. Thank you Jonathan. >> Good morning commissioners. Good morning. This project supports the port's strategic plan goal to develop a 20 year comprehensive maintenance plan to maximize operational capacity, efficiency and life expectancy of port assets. This project involves replacing both the roof and the Hvac system in the South. Administrative building building 3103. The roof and Hvac system have never been replaced on this building and are at the end of their useful lives. On August 5th, 2026, the Port of Vancouver Port of Vancouver issued an invitation to bid 2647 South Administrative Building, roof and Hvac replacement project. On August 27th, 2026, the following bids were received in your agenda item. There's the bid list, with Fisher Construction Group being the lowest, the lowest responsible bidder. Staff has reviewed Fisher Construction Group Inc's responsive bid and concluded they are responsible contractor capable of performing the work. The engineer's estimate ranges from $627,000 to $693,000. All bids received were above the estimate. The low bid was determined based on the total bid amount and after reviewing the bids, it was determined that the deductive alternate would not be awarded. Funds for this project were not included in the approved 2026 annual budget. The port has sufficient funds to award and begin work on this project. Are there any questions or would you like me to read the recommendation? >> Sounds like go ahead with it. >> Okay. That the Board of Commissioners authorize the CEO to execute a public works contract with Fisher Construction Group, Inc. the lowest responsive and responsible bidder for bid 26-47 South Administrative building, roof and Hvac replacement project for the base bid of $883,763 plus plus applicable Washington state sales tax. >> Comments. Questions. >> I have a question. Knowing that prices are all over the place and generally not coming down, I. Perhaps the answer to this question is obvious, but could you talk a little bit about the variation between the engineer's estimate and the bid came in, and just anything we should be aware of? >> Yeah, absolutely. So we've been seeing some some pretty high variability, especially with our roof projects. I think if you recall, there currently are largest roof is being replaced currently. And that was that was put in front of commission here earlier this summer. That you saw a very low bid on. A big part of that reason was just the time of year that we're that bidding there. The later in the year that you get on a roof project, the more risk there is inherently to the contractor with rain events. So that certainly factored into this bid. The other component to this is because we're replacing the Hvac system. There's an existing hole in the roof that we have to match. And so that limits the types of units that a contractor can bid on. And that combined with market availability, that also increased the the estimate. And those are really nuanced to for a for an engineer's estimate to capture. And so that's, that's part of why you're seeing a little bit higher bids this, this go around. >> I had a question about the note that the roof and Hvac system have never been replaced. How how old is that building? >> Yeah. So that building was built in 2007. So it's certainly at its it's time now to replace the roof and Hvac. It's, you know, 20 years. That's about what we're seeing getting out of this is called a membrane type roofer. You've heard references TPO or key KEE has another type. And that's you typically see 20 to 30 years. Some manufacturer. All the warranties are about 20 years. But some manufacturers you see a 20 year lifespan. Some manufacturers see a 30 year lifespan. This particular manufacturer is no longer in business that originally provided that roof. And it's because their roof didn't quite last as long as they wanted their warranty. This project was in our maintenance plan for extended out a few years, but that being said, we started experiencing visible roof leaks on the inside of the building. And so we went up and did another inspection of the roof, found, identified some issues with it, and that it needed to be replaced. Port engineering and port facilities work to Tarp the roof currently. That's also why this project wasn't in the 2026 budget, because it's done on an expedited basis to address that issue. >> And the Hvac. Is that all electric? >> Yes. We're going from a natural gas unit to an all electric unit, right? Yeah. To meet with our climate action goals. >> Perfect. I'm satisfied. Anybody want to move this thing forward? I'll I'll move that. We adopt the recommendation as presented. >> Second. >> All those in favor. >> Aye aye aye. >> Unanimously. Next up. >> Wonderful. Thank you commissioners. >> Thank you. Excuse me. >> So commissioners, each month we provide you a copy of the port contract log. This is a list of all the port contracts, all of our public works contracts, as well as our service contracts and the highlighted sections of those contract logs are the most recent activity. These are also posted on the port's website. Do you have any questions on those? >> None. >> Okay. >> New business. >> No new business today. >> Old business. >> I don't think we have any old business. >> Okay. Accounts payable. >> Yes. I'd like to introduce Nick McIntyre, our accounting manager, who will present the payables today. >> Thank you Jonathan. Good morning commissioners. >> Good morning. >> We did not receive any questions prior to the meeting, so I'll start by reading the recommendation then open the floor for questions. The recommendation is that the Port of Vancouver, USA, Board of Commissioners by motion ratifies and approves the payment of August 2026 vouchers 129189 through 129593 in the amount of $6,430,656.17, including electronic payments generated between August 1st, 2026 and August 31st, 2026, and the amount of $1,880,351.17 and August 2026 payroll checks 52289699 and 52293223 through 52293224 and direct deposits 320001 through 320137 and 340001 through 340157, and the amount of $873,077.09. >> I'm having a problem in that there's a typo in there on direct deposits. Our deal says 320001 through 310137. Is that correct? >> In the agenda on section H? That is how it's listed in the recommendation. And on the agenda item number H-1. It's listed under direct deposits as 320137, which is the correct amount. We have been we've notified notified administration and they're going to correct that. >> Okay cool. I was I was a little bit curious looking at the direct deposits as well. The assuming, I mean, so those are payroll vouchers and it looks like it's jumping from 137 to 157. >> So the electronic deposits, they'll include both payroll direct deposits, but also. Oh, I'm sorry, are you referencing the, the. >> Just that range. >> The range. >> I'm guessing we didn't hire 20 people in the space of two weeks. >> No. >> I'm getting a I'm getting a note from you. >> So I'll, I'll go back to the team and we'll, we'll confirm what the cause of that difference is and we'll get back to you guys by the end of today. >> Thank you. Well, that all move that we adopt the recommendation as presented. >> Second. >> All those in favor. Aye aye. Unanimously. Thank you. Thank you. Have a good day. See your report. >> See your report. We have some project updates. I'd like to introduce Mark Newell Marks, our project delivery manager, who will provide an update on some of the activities going around along the part. >> Good morning commissioners, a few updates. We continue to be busy with projects around around the port. So we'll jump right into it. We'll start here with terminal one dock replacement project contractors, Schetky marine construction and projects around 68% complete. This view here is kind of oblique view. Looking back at the at the dock structure itself. And you can see the kind of the progression from from the upstream to the downstream side of it, with the contractor having prepped for for topping slab pours down on this area. And then and then you can see kind of the step down section where the future public market will be. So a little bit of a good orientation showing the whole stretch down to the waterfront. Vancouver Waterfront Park there. Next slide. A little bit more of a close up view here. This is crews actively working on these pile cap extensions. You can see the perimeter of the public market kind of on that lowered section where the crawl space is. And and then on the right hand side, over the over the piles, them forming, reinforcing, being installed. And this will be kind of the future front, front face side of the public market, kind of that width that will run the whole, whole length down. So they'll continue to, to form and, and jump these construction elements forward and then place precast panels on top of this as necessary. So quite a bit of activity going on here. Next slide is a little different angle showing a little bit similar. You can see those pile cap extensions on the lower lower right there kind of being extended off and crews kind of continuing to work through those areas. A lot of formwork and Falsework supports there. You can see a whole pile of those on top of that. That's the those are the supporting systems that they continue to reutilize to, to support the caps in this space. So a lot of lot of organization going on here, and they're forming edge walls around the perimeter and, and kind of hopscotching around usually about a pour every week or so. Next slide. West progression, as mentioned, this kind of a little different angle looking back where the Vancouver landing ties in to, to the structure. And you can kind of see a few of those pile caps kind of extending out over that area. Crews are continuing to make progress here and working on tying, tying those elements in and finishing up with some of these pile caps. They'll continue making concrete pours and progress all the way through the rest of the fall here. And, and then we'll kind of go from there into the Fender system elements, which that won't occur until probably November or December, when we will have some more vibratory pile installation. Next project is building 2001. Josh mentioned a little bit about this project here. Well, maybe not as glamorous of a project. Nonetheless important to seal the weather and water for another 20 plus years. So roof works about 75% complete. This is just kind of a shot of what the top looks like right now of the of the main building. And the main building is almost 100% complete with its, with coverage as I speak right now. And here's just kind of internal gutter system and, and kind of this is that induction welded system that's been installed. Next slide just kind of shows more of a, another, another view looking back the other direction. More on the ridgeline elements. So there is also a couple of other roof structures down below that are lower that also are in progress. And they will continue working on those here as well. Interior wise, they've been they've this this is kind of sealed off a number of areas that have had kind of historic leaking and elements going on. So those phase one office and kind of lunchroom break room elements where there's been moisture issues, remediation has has been completed and now they're into the second phase. And there's a couple more phases after this to, to work on that area. Next slide shows a little bit of the interior. This is one of those spaces where moisture is kind of come down from the ceiling or has has permeated some areas. So there's some wall remediation work going on on the interior bays as well. So all being coordinated with our, our tenant and Pacific Tech is the contractor working on this project. Next slide. Right next door. Really, like I said, small project, but interesting to the to the adjacent port staff just because we walk through here all the time. So here you can see the structural steel being placed on top of the pile caps. And just the interesting thing to note here is everything. Everything is being supported off those center three columns and down to the foundation. So nothing is relying on any of the adjacent buildings. And so right now they they've installed the steel, the welding is complete. And next slide shows a little bit more metal decking installed. They still have some flashing and connector connections up on top to seal that area off and painting in progress. So fun, fun little project there. Next project here is trail segment four and five and contractors, advanced excavation specialists. The projects around 55% complete. And here in this slide you can see update that you know they're starting to install some of the gravel base. So as you remember, some of these areas were were definitely sloped off pretty good. Now they have some retaining wall structures in there. And so they're getting kind of to that base section. Obviously they still have yet to, to grade that out or get into any of the asphalt paving elements or some of those areas as they're continuing to work on some structural work and subgrade work. Next slide. This is kind of a little bit further down the retaining wall that you can kind of see in the in the right hand side there in the, in the background that that's complete now. So they're continuing to progress in that space. And I think I have one more slide here, which is showing reinforced soil slope walls. So kind of a variety of, of wall elements depending on the location and slope conditions that's out there. So they've completed this work as well. So it's been good to see some, some progress here in the last month on this project. Next slide. I think that's it. So any questions on any of those projects. >> Apparently not. >> All right. >> Thank you. >> Sounds good. >> Thanks Mark. >> Well that's all I have today. Commissioners. >> Cool. There's an order to this, but I think you're it. >> Okay. Let's see. So I went on another port tour. Not this past weekend, but the Saturday prior and again, packed bus folks were super interested in it. Love hearing the community talk about how excited they are to learn more about the port. And Aaron just did a bang up job again. So awesome work. And then also had a meeting of RTC, the Regional Transportation Council, and just a comment on the work of that. So RTC coordinates different agencies in our in our region, southwest Washington region for transportation projects and distributes some federal funds. And because of Rtc's and our local agencies ability to be nimble with some of this funding and able to move stuff around if something isn't ready, being able to move it to a different project. What that's allowed the region to do is capture funding from other regions that aren't able to be that nimble. So was pointed out that lots of other regions are jealous of RTC, so we encourage them to keep up that good work. And what it does is it allows us to continue to get transportation projects moving, impacting the region in a positive way and using money that other regions maybe weren't able to use so effectively. So good for us. >> Thank you. Eric. I mean, the main thing on my on my radar over the last couple of weeks was Labor Roundtable back on the 28th. One of the concerns that came forward that we might want to take an additional look at and it came from from a report from the city was with our responsible bidder language. There's a kind of a kind of a gap there where. As we look at L and I records for contractors, it will list violations once they finally wound their way through the years worth of appeals and citations and complaints are available, but require a public records request, which then kind of puts ports and cities in the in the unfortunate standpoint of if we want to take those into account, then our contracting folks have to manually request records and essentially set up an investigation for every successful bidder. So it's not not really scalable or sustainable. So wanted to bring that forward. And I'll be probably discussing that a little bit more with, with Julianna when she's back to see if there's opportunities for us to, I think it would probably be a statewide fix, but opportunities for us to support L and I and making that information more readily available so that we can take that into account as we're bidding out all these different projects. And that concludes my report. Interesting. I used to be an employer in L and I. The difference between when an issue happens and when it goes on your record and affects your rates and so on, can be 18 months or you're in the HR business, you know it. And that's fascinating. I don't know how you repair that, but. It might be an interesting issue for us. I met with the CEO, I went to a climate community climate discussion. The city was backing over Marchel house that was led by the conservation group ideas about how we can move forward in this time on our on the targets to get to the climate targets in very interesting times. And it was pretty good. Had about 20 people participating from all over town. And actually I live a block outside of town, so I went anyway. Yesterday I had the opportunity. There were two things I went to one, they had a recovery day down at. Esther Short Park and I hadn't somebody I know was a food vendor down. It was rather exciting. They had groups from veterans groups and and community groups and all sorts of nonprofits that try to help people get out of God awful problems they're having around substance abuse. And it was encouraging. And that there were, I would say. Hundreds, if not thousands of people there that were working successfully. I don't know about anybody else, but in my case, I know people or I'm related to people that struggle with these issues. And it gives you hope that maybe, maybe there's a way out of this stuff. And I went to a Labor Day picnic and bumped into Eric there again yesterday. I think that'll do it. Up next. We've got a workshop coming. Is it ready to go now? >> Well, I think we're due upcoming events and then we can roll into the. Yep, we can roll into the workshop. Right after that. >> I do the same thing to Juliana, I apologize. >> Okay. All right. Upcoming events. So next commission meeting. Our regular commission meeting is Tuesday, September 22nd, 9:30 a.m. Community events. We have the Lincoln Neighborhood Association meeting, which is Tuesday, September 8th, 6:15 p.m. to 7:45 p.m. at Lincoln Elementary School. We have our ninth port tour on Wednesday, tomorrow, September 9th from 10 a.m. to 11:30 a.m. reservations are currently full, but you can join the waitlist at the Port Van, usa.com/community. We have a September Hatchery tour at Columbia Springs, which is Wednesday, September 16th from 3 p.m. to 4 p.m. you can join the Columbia Springs team for a hatchery tour and trace the path of spring water through their site. And this is a free event. We also have the Vancouver Audubon Migratory Bird Celebration, which is Saturday, September 19th from 10 a.m. to 1 p.m. at the Water Resources Education Center. Join in on the third annual celebration of the tens of millions of birds that migrate through the southwest Washington, traveling thousands of miles and back again. This is also a free event. And lastly, we have the Clark County Historical Museum, Haunted History walking tours, reoccurring weekly on Fridays and Saturdays through Halloween. October 31st at 7 p.m. Learn about the tales, the history and unexplained mysteries of Vancouver on this mile long tour through downtown. Tickets are $20 per person. Communicating with commission so you can share your thoughts during open forum at our at our public meeting, the public comment period for all regularly scheduled Commission meetings, you can email the commissioners at Port Commissioners at Port Vannis, kutsar.com. You can speak to commissioners by calling the port office at (360) 693-3611. For specific contact information, you can mail your comments to port POV Port of Commissioners at 3203 Northwest Lower River road, Vancouver, Washington, 98660. And for more information, you can visit the port's website, www.kutsar.com. Now we can get it. Now we can get into the. So if you'd like, we can. We can do that. We have the workshop. We can roll right into that if you'd like to. >> Please do. >> Okay. With that, I'd like to introduce Chris Carter, our information security architect, and Logan Rogers, our information security analyst. They're here this morning to provide an update on cybersecurity. >> Good morning commissioners. Good morning. Good morning. All right. So we're going to split this presentation up here. I'll cover the first part. And then Logan will go ahead and cover the second part. So again my name is Chris Carter. I'm information security architect here at the port. We're going to touch on the year in review first kind of what we've been up to and kind of what we've been working on. So the first highlight of the year I want to cover is we had the US Coast Guard come out and do a hunt mission. Two years ago. We had the Coast Guard come out and do an assess mission. So at that time, they brought out 13 people and played their roles as of hackers and tested our systems. The mission is a little different. So this is a cyber protection team. That is they will deploy if there's an issue in a port or a maritime facility and hunt for the adversaries. So in order for them to keep their training up and stuff, they they come out and do these free missions. So this year they came out, they came out, they did two site visits prior to coming out. The first one was just to walk around the port to see our, our systems, how our networks are set up. The second time they came out and deployed sensors that were intercepting our network traffic, and those ran for about 2 to 3 weeks. And then after that, they came out for two weeks total on site, five of them. And they went through those logs and then helped us. You know, there was a lot of questions, you know, how do how do these systems work? And then they're also searching for adversaries. I will say they did not find any adversaries on our network. So that's definitely positive. But it was a great learning experience for both them and us. You know, over the two weeks they did, they asked you a lot of questions. We had a 180 plus questions asked of us trying to dig deeper into the systems. And, you know, they're really asking questions like, why does this computer talk to this computer? And so it was a, it was a great learning experience for our side to just to help better understand why these computers are communicating the way they are and making sure it was the right thing to do there. So. So as I said, that was our second US Coast Guard mission in the last couple of years. Most ports don't want to sign up for these because they're afraid that the US Coast Guard is a regulator. They're going to get in trouble for doing that. But this is just just a great way to establish that relationship. So if there is an issue down the road, you know, we have that working relationship with the Coast Guard. And there was zero cost to us. So I would say their first assess mission, if we were to do that, to go out to bid for that, it's definitely over $100,000. And probably the same with this last one. So it's a good cost saving measure as well. Immediately following that, which I will not recommend doing back to back assessments, we had the state auditor's office go through a cyber checkup with us that was not as intense as the Coast Guard's assessment. This time around. It was just a 20 category checklist where we met with them, provide them with documentation. We went through, you know, their recommendations, making sure we're hitting on all those marks. What's coming out of that is we signed up for their full cybersecurity audit. The unfortunate part of that is there's a 2 to 3 year waiting period on those. So so when they come out in 2 to 3 years, it will be intense, like the Coast Guard type of missions that they've done. And again, this is provided to us at no cost. So it's a great cost savings there. So. One thing we're working hard on this year is, as you know, with the new ERP system, our environment is changing. Technology is changing. When every time that technology changes, so does, you know, the the attack surface. So we're constantly upgrading our policies, kind of reviewing the technology and making sure we're staying on par with the changes there. As you know, the AI is exploding everywhere so that the AI aspect of that is while it's helpful in everyday work, it's also extremely helpful for the attackers. So they're attacking faster. We're seeing an explosion of patches come out. I joked that it used to be Patch Tuesday. It's now patch every day because it's how everyone's releasing patches as AI's assisting in finding these vulnerabilities. We've also had another successful grant fund to the port security grant. That's to replace some camera equipment. We also have another open grant with the port security grant on a network access control system that is 95% complete, and we have two grants out right now. We're waiting for word on that will assist us in some cybersecurity projects. So we're always grateful for those programs. Another one more grant I wanted to touch on really quick is the state and local cybersecurity grant program. Myself and Logan. This is provided through the state. They had offered some training opportunities on AI and privacy. So both me and Logan applied for that training and we both received it. So we're two of 50 people in the state. So we're working through that right now. And then another thing to highlight on that. We're the only two people from the port industry to receive that. So that was we're grateful for that opportunity. Next slide. We'll talk on the big one on the regulations. And I know I covered this one last year and probably the year prior also. Next slide. So the TSA so stands for Maritime Transportation Security Act. That was established after the events of nine over 11. So that was came into the act in 2002. So that was mostly focused on physical cyber security gates, guards, stuff like that stuff you see at the airports and stuff like that. And then, as you know, technology changes. The threat landscape changed. We started seeing, you know, Coast Guard wanting to put some emphasis on cyber security. So, you know, when I started at the port, one of my first conferences I went to was the Coast Guard was talking about cyber, this, cyber that we're going to have controls. We had to wait about five years for that to actually start taking place. So their first attempt at that or first requirement was the cyber annex, which we saw in 2021. So that required every port to have like a cyber plan. Kind of one of the issues was that some port cyber annexes were 50 pages, 100 pages long. Some some were 2 to 3 pages long. So there was no really structure to them. And so it really wasn't doing a lot to keep us safe because there was no guidance on that. So they came up with the new final rule, cyber rule that came out in 2025, that when first rolled into effect in July of 2025, and that first aspect of it was reporting how we report cyber incidents. Who do we report to? If there was a cyber incident? We have several reporting channels, which I believe currently for us, we would have eight different reporting agencies we'd have to report to. So there's still work on the federal side on how they can coordinate that better. But that was the first one that came into effect. The second kind of land mark on that was in January this year. It required that everyone that touches your network has to be cyber trained. So we provide annual cybersecurity training. And that's not only going to employees and contractors, but even vendors that may need remote access. So if a vendor is requesting remote access, it's not freely given. They go through a cyber security training and they are heavily vetted on that. We are very, very limited on how we get access to that, to those vendors. Next slide. So I'll go a little bit more about the regulations. So the first part of this regulation is a formal cyber security plan. There are, I believe, like 15 or 16 different controls that are looking for all the way from logging to training to reporting, like I've already covered. It's. Fairly more more structured and more specific what they're looking for. So I think that will help better than the cyber annexes. The next thing they're looking for is a dedicated cyber security officer. So they want to make sure that there's someone at the port that they can get hold of 24 over seven, and that is responsible for that, that cyber security plan, both in myself and Logan share that responsibility. There kind of a new thing here is what they're requiring is annual risk assessments. And that's where we go with our partnerships with the Coast Guard and the state auditor's office. These risk assessments are expensive. So when we're using those free resources through the Coast Guard, through the auditor's office, through the Department of Homeland Security, that's going to help us use that money that would go into just a couple week process, but we can redirect some of that money to more security platforms and stuff like that. Training and awareness. We've touched on that a little bit, but as of January of this year, cybersecurity training and awareness is required for all all staff, contractors, vendors. And there is a time frame on that. So they everyone has to be trained within five days of receiving network access. So that's usually covered in the first week. And on the onboarding process. So then other regulations are continuous monitoring. We're logging, you know, network traffic, phishing emails, stuff like that. You know, there is some language in the regulation where they're not giving us defined periods. Like you have to keep your logs for 90 days, 180 days. So there's a lot of back and forth right now. And like, you know, how many days do we need to keep these logs or years or whatever? So I think their language is to, when it's no longer useful, right? When is that? So we're working through that right now. And then the reporting requirements. So, you know, there's strict guidelines through the Coast Guard on how we report who we report to in the time frame. But on top of that, we have other regulations through the state, especially when it's impacting financial systems. And when we report. Next slide. So our past so far. So we've built this layered security program, you know, across all of our systems. We tried to get involved really early in the software selection process. We're vetting the vendors, the country of origin, you know, hardware is a big, big issue. We want to make sure it's manufactured not in a nation state sponsored, you know, known for cyber activity. So we we are really working hard on that to be part of that process. We've rolled out multi-factor authentication through all users and vendors. You know, that's one of the key factors of stopping a breach is to have that multi-factor authentication. We've improved logging and monitoring. You know, everything gets logged. We've run dashboards, we run reports, we run our processes off this logging. It really helps us identify issues early. For example, if you were to go to a outside of your normal login activity and log in, let's say from Canada or something, we're going to get alerted about it. We're going to investigate that right away and make sure that that's a valid login. So we have established an incident response plans. We're working on those playbooks and response plans constantly as technology and system changes those have to be updated. So like I said, we worked hard with the Coast Guard and Soyza and Homeland Security and the state Auditor's office to get these assessments that they offer for free completed. And we're we're leaning heavy on federal and regional agency partnerships, which I'll touch on in a little bit here, too. We have active participation in the MTA Isac. So the Isac stands for Maritime Transportation System, Information Sharing and Analysis Center. This is a. Nonprofit that the port was a founding member of. I served on the board for 5 to 6 years. Now Logan is on the board taking my spot. So it's a great, great agency or great organization that has many ports across the country and now even across the world that are sharing information Dayley to fend off attacks. So kind of one of the things we're doing now is we're doing regular cyber exercises. So those consist of, you know, full blown tabletop exercises. And they and then we have monthly phishing tests. So you may see those come through. We are constantly testing users, not only testing the users, but it tests us on how we respond. If there was, you know, phishing test that someone may have clicked on of how we go through our processes there. We continue working with the Coast Guard on cyber testing. You know, like I said, we've done two missions so far and we love to have them out again. And probably after the state auditors come. Try to do one of those big. Missions, you know, every two years. So we're engaging with a third party cyber security operations center. So this allows us to sleep at night. So so they're have 24 over seven eyes on our network. Our network logs. They see an issue at three in the morning. They'll call us. So it's not an alert that's waiting in my inbox in the morning. You know, if we're we're working against adversaries in other parts of the country. They're not on the same time frame as us. You can almost see when they determine your hours, you work and they'll start their attacks like an hour after you're done for the day. So this third party SoC is really beneficial for us. You know, hopefully we don't have to use them too much, but definitely allows some, you know, downtime for us away from the office. So we're formalizing the MTC, our TSA compliance plans, like I talked on the regulation. So those are due here in July. We're going I'll hopefully submit our plans and documentation here by the end of the year. And then we're expanding governance and documentation. You know, it's. Especially with AI, everything's changing so fast. Especially how we treat data. And, you know, these new systems and how many kind of. Capabilities they have and how fast they can do stuff. So we're expanding that governance and documentation to support those systems, standardize standardizing controls. So part of that's through the regulation. So there are those Coast Guard regulations follow some controls called NIST 853. We are, you know, trying to have a standardized you know, how we how we operate, how we do our user accounts, stuff like that. And then most importantly, we're sharing with others. We're really active in a lot of different groups and how we're sharing threat Dayley Intel Dayley not only threat Intel, but best practices and, you know, even software recommendations. Next slide. So we're invested. We're counts and that's our people. We're one of the few ports in the state that has two dedicated cyber people. We definitely wear more hats than just cyber. But I mean, most ports in the state, I would say about 20% of them just in the state only have IT team. And most of those are just single person IT teams. So we are seeing ports starting to hire cyber as these regulations come into play. The part kind of the struggle they're going to have on that is these regulations are pretty intense. And you got to really know your networks to so that hire someone in and have them be there just six months before a major regulation is due is going to be a definitely struggle for them. And then just want to touch on this throughout all the Pacific Northwest deep water ports, only, you know, 30 to 40% of them have cyber staff at all. So. I don't know how they do it and defend off all the adversaries. But. I think that's an interesting fact. Next slide. I just touch on our partnerships. These partnerships are really important for us. Excuse me. So we touch on the Coast Guard's partnership outside of our missions that we do with that, we have an area maritime cyber security committee with the local sector. We meet usually quarterly on that, but we're always in touch with our cyber representative at the sector, usually weekly, at least monthly. So we're working with the Coast Guard a lot on that. We are members of the FBI. Infragard. Community. So the FBI Infragard is a private partner, a public private partnership, so that those groups have, you know, they have public sector, they have private sector. They have the federal government agency. I'm a member of the Oregon Chapter, and Logan is a member of the Washington chapter. So we cover both those chapters on that process. With the next one, I want to touch on the maritime transportation system. Isac. So like I said, we were founding members of that. We continue working with them. You know, we're sharing hundreds of threat Intel things back and forth weekly. It's a completely automated system now. So it loads right into our system. So if a port in Louisiana says, you know, we're seeing these phishing emails, these network threats, it gets put into the central system and pulled into ours. And then we can flag on that. So it's really beneficial for us because there'd be no way to manually go through those spreadsheets and look at them and load them up every day. And. It's very interesting to see when you see an attack take place or an attempted attack take place in Louisiana or Florida, and then that same one is taking place here or in the state here. So one other Isac we're a member of is the water Isac. We do have a small water system here. So this the water Isac water utilities have been in the news a lot in the last couple weeks. Utilities they're getting they're being heavily targeted by nation state actors. And so this water Isac you know, we're exchanging, you know, same same idea with the maritime one exchanging ideas. Threat Intel policies, you know, making sure that, you know what what happens at one utility or one agency across the country doesn't happen here. So it's been a really great partnership there. One thing we found on the next one is the Pacific Northwest Maritime Information Exchange. This is kind of a branch off the. Isac. So. Isac is great. What I wanted to do was to have something more regionalized. We see different threats sometimes than maybe a port in New York or Louisiana may face. So this is a more localized information sharing. We have several tenants in that group. We have several ports throughout the state in that group, and we have some different agencies in that group. So we're, you know, exchanging information back and forth. It's been a really great, especially on, you know, deploying controls or policy against like maybe something comes out of the state and how, you know, we can. You know, query another port in the state and say, you know, how are you tackling this issue? And so we're not all trying to reinvent the wheel. So the Association of cities, counties, information systems. So we are certainly not a city or county, but they do offer membership to all government agencies. This is an extremely active group through with all the cities and counties throughout the state. Again, it's just mostly exchanging best practices, policies. You know, controls why we may not all use the same systems. Most of our base systems are the same. So that's been really beneficial in the last year as we grow our ERP system. The American Association of Port Authorities, we are active in the IT committee. We're active in the cybersecurity subcommittee, and I've been attending some of the physical Security Committee meetings as well. Just as there's been some overlap with cyber and physical security. So that's something we, you know, always been involved in, continue that relationship there. And then finally, the state of Washington. I think this is something we've really worked the last year or two with. Maybe we weren't as involved before, but, you know, both myself and Logan volunteered to do an RFP with them to review how they're doing their cyber stuff. So. That was a great experience. It was a very time consuming experience as our RFPs maybe see 10 to 20 applicants, the states had over 180. So. Going through all those RFPs to help the state select their cyber controls. And that helps us when we then they do a grant process for that training. You know, we help them out and hopefully they'll return that favor. So that's all I have. I'm going to turn it over to Logan now. >> Perfect. >> Thank you Chris. Morning, folks. So first topic, we're going to kind of discuss. I mean, as you know, AI is everywhere. You can't really even go to a coffee shop without hearing about AI anymore. So we're going to start with that. What we're actually going to start with is a little brain teaser. So what I'm going to show you is I'm going to show you a picture. It's going to be two photos and just kind of guess if it is real or if it's AI generated, can you kind of piece out what might be real, what might be fake? Commissioners? Do you want one of you want to take a stab at it? Which one you might think is real might be fake. >> Not me. >> I'll say on the right. >> Okay. >> I was going to guess fake on the left. So one of us. >> Will get. Okay. Perfect. So it is a teaser. They're actually both fake. So that's one of the things with AI. It's not a single thing that you're going to be seeing in your emails anymore. Trying to create paragraphs help you draft a speech or anything like that. It's we're getting into more real life things of image generation, and it can fool, fool the eye, fool the next person down the road. So we'll go into really the next topic of it is the capability is advancing. One of the first items here is frontier AI models. What frontier means is kind of the bleeding edge, the next up and coming thing that you're going to see, and a test out in the wild. We call it the humanities last exam. What it is, it's it's a test compiled of 2500 questions from different agencies really around the world. So these topics include math, science, engineering, medicine, some of these some of these tests kind of help create new medicines and create new vaccines. So some of these frontier AI models from this source at Stanford, these gained 30%, 30 percentage points in a single year. That's unheard of. You don't really hear about that from technology, let alone people most of the time. So some of the stats, some other stats from this report, I would recommend going to read this report. As for the last three, almost four years now, Stanford has released this AI index because as I said before, AI is taking off and it's not really going to stop. So one of their tests, their AI models did achieve gold gold medal level performance on the International Mathematical Olympiad in 2025. That's just an interesting stat, because though math may seem A to B equals C, it's not always how it is. And then this new benchmark, this is called OS world. What it is, it's almost 370 tasks that we give the AI model, and we give it pretty much a computer to run by itself. It can use its keyboard, it can use its mouth by itself. And we say, go do this benchmark. As that graph indicates there on your screen from 2024 to 2025, it increased significantly. I believe it was about 12%. And it's reaching almost a human level capability. So it's not going to slow down. This is a year over year trend, and we're seeing week to week, month to month that it's even progressing even rapider. So a couple things with AI, it's not only being used for proper, proper items like this, doing benchmarking, doing testing, but it's, we're, we're seeing it used, obviously, as Chris stated, and the more attacking vector, not only targeting Port Maritime, but really the entire world. So a couple couple items to really always look at is verifying before you trust it. So the sauce, were you expecting it. What's it coming from? AI can now manipulate voices. If you if it hears and trained long enough on a model or excuse me on a voice, then it will start picking up speech, speech recognition and can actually mimic voices. Unfortunately, it's it's a tough thing to hear, but it can also do face, as I showed you previously, we can just create random faces and it's going to fool you. And with writing, it's just becoming better and better in writing. So if you were not expecting it, and especially if you sense a sense of urgency to it, then stop. Don't communicate with it and just take a couple minutes to ask and ask for help. The context, just because it seems perfect and it seems so well written, doesn't mean it's actually legit anymore. Number one thing to ask is, does this actually make sense to you first off? And then the last part is to confirm this is what I do in my personal life. Anytime you're not expecting it, just verify if it is a doctor's office calling you, saying that you have something and you weren't expecting it, hang up the phone. If they called you and call your actual doctor's office, or if you got an email, they say you have something, just call them. It's not, it's not just going to take a couple of minutes. So how we're keeping up with this environment, as Chris stated, we were two of 50 folks in state of Washington to get awarded our certification trainings, ones on AI, ones on information privacy. So we are going through that. And then another certificate that is taking place is a more offensive, secure security cert. So one of my one of my main duties is I perform hacking actions. So I do it on our network. Because if I can find it first, then we can patch it quicker. So I am going through the certifications and it will just better our environment for that. We are attending a ton of webinars and summits, so getting involved in the community, not only locally but around the US to make sure that we're staying, staying informed on what is actually happening out there. Obviously working with our partners, as Chris said, we have a lot of partnerships locally, so we are keeping a constant communication with them to understand what they are seeing and what we are seeing. And because at the end of the day, we're all doing the same fight. So it's it's best to share all the information together. As I become certified. We're trying to do that the best we can and then testing. We not only test internally, but like I said, we test externally too. We have to make sure our environment is secure the best that we can. So we're going to shift a little bit to cyber security and business continuity. Business continuity is one of the most important things because we have to keep the port running and keep the lights going. So the environment that we're in, couple industry wide trends that we're seeing in 2025, maritime cyber incidents roughly doubled. Last year, we saw close to 1200 cyber related incidents throughout the maritime industry. So it's not it's not going to be slowing down for 2026 either. I expect it to be close to double again, unfortunately. And when these events do happen and these these partners are breached, we're typically seeing a recovery window now moving into the weeks instead of days. It used to be days for a very long time. But now that attacks have gotten so sophisticated and somewhat easier depending on if you're using a or not to complete it, there a lot longer lasting. And then in modern ransomware attacks, they're also targeting backup systems. So best business practice is always to keep backup of all your data, keep it here and then keep it there. These these attacks are starting to try to find those backups, data sources and make sure that these businesses can't come back online. So why this matters for us? It's we all have to understand it together and try to figure this out. So prevention is still the precedent and that's what we're taking the most serious. That's why we have two cyber staff here. But understanding that recovery is really the next best option as well, just in case something does happen. And then our posture, what we are doing today, a little bit of information on that. As Chris stated in extreme detail, we are doing a lot of port wide monitoring, understanding what's in our environment, what we can see and what we can't see. We are doing external attack surface scanning. Like I said, we we have to make sure that if we can, nobody can get in. And if somebody can, then let's find it first and make sure to close up that hole. And then sector information sharing. As stated a lot, we are we are wanting to make sure everybody else knows what we're doing and vice versa, because somebody down the road may be seeing one thing and we won't know about it for a couple hours. Testing. We are doing regular security awareness exercises. As Chris stated, we are doing it both internally and then we have ongoing testing of our safeguards and defenses just to make sure the things that we are putting in place actually meet what they say, and then talking about backups, understanding that we we do have our backups in place. And if something were to happen, if we did move to that backup system, will it actually work? So we, we, we actually go through our, our backup system and actually run it. And it will not hurt the operations. People won't even know about it. So we, we prove that everything actually works. And then responding, if something does actually happen, how do we respond? So we have documented incident response plans. So if incident A happens then we're going to follow subset A, B, C and D. And then making sure that all of our defined roles are actually there. So we're not guessing. We're not trying to figure out who to actually go to. And as Chris stated, when we have to report anything, we have upwards of eight different agencies. Not all of us are going to memorize all those agencies, the phone numbers, the emails that we have to go to. So we just write it down and then understanding the incident we in we in this community security community, excuse me, call them postmortem reports. So we do them already here and understanding that at the end of an event, we can go back and look at it five years from now and understand what actually took place, what we did to fix it, and what we learned from it. Continuity when it counts. So these are kind of the steps that we take in place. So if something did happen, this is what we're going to actually happen. We're going to first contain whatever's actually going on. If it was a single device or a plethora of devices, we're going to find, we're going to find that group, and then we're going to isolate it just to its own home. That way it can't start spreading around the network operating, as I said before, our contingency procedures and our incident response plans, we're going to follow those plans and playbooks and understand what needs to be stood up to be able to run and keep keep the business going in an unfortunate time. And then once everything is actually taken care of and secured, and we can confirm that we're going to start restoring from our our backup data and make sure that all of our tested procedures actually work and go through. And then communicate, just notifying those who need to be told about what's going on and make sure everybody knows what is happening. So the main takeaway of continuity is we're always going to be prepared. But if something does happen, we're not too alarmed. Obviously, it's a scary time if something does happen and a cyber event here, but we plan for hours and hours at a time understanding what we need to do and know that though the restore time and event time may be weeks now, we're not going to be we're not going to be sitting there for months on end and trying to figure out what to do. So we always have to plan. That's it for me. Any questions? >> Not a question, but a comment. Thank you. And as somebody who misses rotary phones, I really appreciate those of you who are really digging in and taking this seriously to protect everything and everyone. I really appreciate the the tests of all of us as well. I think that's a great I got caught once, so I really appreciated it when that happened. And an email tricked me. So yeah, just thank you for all of this work and staying nimble and prepared as it continues to change every minute. So thank you. >> I was going to ask because I know, Chris, you've presented at WP a couple of times what, what we're seeing with some of the smaller ports, because I know they're, I'm assuming they're lacking a lot of the kind of bandwidth to address some of these things, but they're no less, no less exposed. >> Yeah. So they are starting to hire some more, bringing both IT staff and cyber staff on board. So. Some of the smaller ports that I'm in communication with in the last six months, they've hired cyber people. So that's a good sign. I think we'll see more of that coming up. I mean, it's just with the regulation, if they are mtsa regulated, it's going to be a struggle to do that without staff. So. Like I said, through our partnerships, if they need a policy, they need to be pointed in a direction. I'm always there to help. And same with Logan, I mean. You know, we're happy to share not only our threats, but our best practices and our policies and stuff like that. So I think that's something we're seeing across the state through, you know, everything's changing so fast. People have kind of given up on trying to do it on their own, and they're using their partnerships and, you know, I think we've got past to like, you know, if you're at another port, you're a competitor on this IT and cyber side, that's not the case. I mean, there's great interactions with through the ports and, you know, sharing our best practices and. You know, like what solution to use. I think that's one of the, the biggest ones is we get hit constantly with sales pitches and. So, you know, get that word of mouth and say, you know, we're using this solution, look at it to solve this problem. I think that's really beneficial. So. >> Well, I appreciate your, your support of some of the smaller ports and the fact that we are working together. >> Can I ask a follow on to that really quickly, which I also appreciate? I mean, in, in all of our departments, we have such incredible staff and we're at a size where we're able to offer a lot in, in support to some of the smaller ports. And I really appreciate all the different information sharing groups that there are. A question that I had listening to that, though, was, what are the follow on effects for, say, us for a larger ports that may have more of that infrastructure? The following effects of the smaller ports not having as much infrastructure like despite their best intentions, there may be more that could happen to them because they just don't have the support that we have. Are there follow on effects for us of, say, a smaller port, getting an attack, getting attacked in some way? >> I mean, there could be I mean, we see it where like a vendor gets attacked and that same vendor works with like, you know, 25 different ports in the state. So that's where we get really like when a vendor comes to me and goes, I need access to this system. And my first answer is always, no, like, like you're not getting it. Like you're going to go through all these steps. But some ports say, you know, we don't have the staff to, to manage that. So here's access to our system. I think a great example of that recently is not in the port industry, but in the water industry, where all these in Minnesota especially, they got hit really hard with the rural water systems, got all, you know, they were getting attacked. And a lot of that's because they're using the same systems, the same path in. It might be a vendor that can, you know, say, I can access all these. I once had a vendor show me that, look, I have control of all these systems. And he showed me on his phone. I was like, well, that's, that's not good. Like, like, because then as an attacker, I'm not going to attack a single port. There's, there's, the payout is not as good as if I go after that vendor who shares, you know, that that, that 25 port, you know, circle. So I think we're seeing that more supply chain attacks take place that that way the attackers, you know, they'll still focus on, you know, the port or the port of Vancouver with the Port of Vancouver. We're lucky because we get confused with Canada all the time. So I mean, I mean, even on my calls with vendors and sales pitches, they talk about Canadian regulations. And I'm like, wrong, Vancouver. But but, you know, we see a lot of that. You know, the supply chain attacks and stuff like that. And we'll see that same. We'll see a distribution list. So let's say a vendor sends out, you know, their company newsletter and they put everyone in the two line. Well, once someone on that two line gets compromised and then you just see that thing roll, like for 4 to 6 weeks. And I think we had a good example. I in the last year where an environmental agent or a contractor or vendor got compromised and all that information was on the sheet. So they were just kind of going through that list and you'd see someone on that list get compromised this week, and then next week it's the same. So that's where information sharing goes. If we can get that information out and share, you know, we just saw this vendor get compromised if you're using them, heads up. So because when a vendor does get compromised, they're not the first ones to run out and tell you that they're compromised. They don't want that information getting out. So sometimes they'll send out a little follow up email. You know, we got hacked, we got compromised. Don't worry. We got taken care of. Well, is that really the case or are other ports and other people in the industry still seeing that? So we really stress hard on the information sharing. And again, that's not only threat Intel but the best practices too. So. >> I think as a follow up, I'll just say that the. The word that's coming to mind a lot is proactivity. Thinking about like, like joining the cities and counties group. And yeah, we're not a city or a county, but probably using a lot of the same systems and vendors and whatnot. It's, it's that kind of proactivity that I think helps helps keep us safe. So definitely very much appreciated. >> I also want to point out we're learning as much from the other people that, that they are learning from us too. So I won't name the port specifically, but there's a port in the state that has a one IT guy. He is really good at one thing and I learned so much from him. And then we share that information back and forth. But, you know, I think in the industry, sometimes you get like, well, if you're not from this big major port, you're not an expert on it. But these smaller ports have the experts because they're the ones wearing all the hats. They know the systems completely. So we learned a lot from the smaller ports too, that have the single IT guys. So. >> An observation is that a fear that people have is that AI is going to cost jobs. And it sounds like they also create a whole lot of of that. And I have to I have to thank you for coming in and terrifying the jabbers out of us on a fairly regular basis. I don't appreciate it, but thank you. I think that concludes it. Unless anybody had more words. Thank you so very much. Thank you, thank you, thank you Chris. With that, I believe we go to. The this is the end of the public meeting, am I correct? We're going to sign documents and we'll we'll adjourn a few minutes after that. Thank you all.