Port of Grays Harbor

Commission Meeting Agenda

June 12, 2018

The Port of Grays Harbor Commission Meeting for June 12, 2018 was called to order at 9:00 a.m.

Mike Folkers, Director of Finance & Administration led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Chuck Caldwell - Commissioner
Stan Pinnick - Commissioner
Jack Thompson - Commissioner
Gary Nelson - Executive Director
Arthur Blauvelt - Legal Counsel
Mike Folkers - Director of Finance & Administration
Mary Nelson - Director of Finance & Administration
Leonard Barnes - Deputy Executive Director
Mike Johnson - Contract and Project Manager
Randy Lewis - Director of Environmental and Engineering Services
Seth Taylor - Marine Terminals Manager
Shannon Anderson - Business & Trade Development Asst.
Ross Read - Operations Manager, Satsop Business Park
Kayla Dunlap - Public Affairs Manager
Keya Bernhardt - Communications & Administrative Coordinator

VISITORS
Linda Orgel - CCH
Arnie Martin - GHAS
Bob Espesito - Citizen
Ben Miller - Rainier Connect
Courage Bear - BHP
Valerie Bond - BHP
Brock Gill - BHP
Bob Bellamy - Citizen
Vickie Raines - GHC
David Haviland - Jodesha

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes of May 8, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 206 through 213 inclusive.

VOUCHERS:
1. By motion made by Commissioner Thompson and seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued May 18, 2018 and June 5, 2018, ACH/Wire Transfers No. 999001020 through and including No. 999001033, and General Disbursement Vouchers No. 97038 through and including No. 97254 for payment in the amount of $2,671,717.76.

REPORTS:

BHP Update
Gary Nelson introduced Brock Gill, Vice President of Projects, and Jamie Bretcht, Specialist Commercial of BHP. Mr. Gill reported that BHP plans to develop a marine export facility to transport potash for fertilizer use in overseas emerging markets that have increased demand on their agricultural resources. Potash is potassium chloride, which is a naturally occurring mineral, and a key ingredient in fertilizer.

One of the two sites BHP is considering for an export potash facility is the Port’s Terminal 3 industrial site and surrounding area (project site). Potash would arrive from BHP mine in Saskatchewan Canada via specially designed unit trains. The Terminal 3 site would then be used to unload, store and then loaded upon Ocean going vessels for delivery to Asian markets.

Mr. Gill requested that Port Commissioners consider granting an option to BHP for a lease to Terminal 3 for the development of an export potash facility. The grant of an option will would include, the term in which BHP could exercise the option, duration of the right to exercise the option, cost of the option, and procedures required to exercise the option.

Mr. Gill thanked the Port for the opportunity to present an update on the project and has enjoyed his time working with the Port of Grays Harbor.

Rusty Scupper’s Pirate Daze
Molly Bold reported on the upcoming Rusty Scupper’s Pirate Daze in Westport. The event begins on Friday, June 22nd and wraps up on Sunday, June 24th at 5pm. The Port will have their typical involvement this year. Unfortunately, Cassandra Litterer was not able to attend the commission meeting to give a more detailed report of the festivities.

Westport Marina Activities Update
Molly Bold, reported on the Westport Marina activities. The 2018 summer recreational fishing opportunities include halibut, salmon, bottom fish, tuna, and crab. Launches are up 50% from last year’s numbers. The 2018 summer commercial fishing opportunities include crab, pacific whiting, tuna, spot prawns, shrimp, and salmon. The 2018 Westport spring and summer events are as followed:

• Crab Derby and Races – April 21-22
• Weekend with the Fleet– May 26-27
• Rusty Scupper’s Pirate Daze– June 22-24
• Old Fashioned 4th of July– July 4
• 2nd Annual Run like the Wind– July 8
• Biker’s at the Beach– July 27-28
• Washington Tuna Classic– August 4
• Westport Art Festival– August 18-19
• Seafood Festival– September 1st
• Reach the Beach– September 29

Ms. Bold reported that growth and investment is up in Westport for 2018. Sales tax revenue is up 15%, hotel tax is up 20%, and home sales are also up 20% from 2017.

The 2018 Westport maintenance crew includes 2 full-time year-round employees and 5 full-time summer employees.

2018 Dredging Update
Randy Lewis reported on the 2018 Corps dredging. Mr. Lewis reported that spring dredging in the outer harbor was completed on May 18, with approximately 690,000 cubic yards of material removed from the channel. The fish closure for the inner harbor ends at midnight on July 14 and American Construction will begin dredging immediately after that. They will be focused totally on completing the deepening of the Hoquiam Reach, which must be finished when the current contract expires on September 30.

Mr. Lewis reported that based on last year’s production rates, the Corps has determined American is unlikely to complete the deepening on time, and definitely won’t be able to complete the upriver maintenance. As a result, the Corps has worked with American to hire a subcontractor so that work on both sections can occur at the same time.

Mr. Lewis reported that the Corps is preparing to advertise for the next channel dredging contract and plan to award it in August. That contract will involve maintenance work only and will begin on December 1 and run until February 2020. There won’t be any channel dredging in October or November which is normally a down time for Corp dredging to avoid impacts to the tribal gillnet fishery. The Corps also awarded a contract to HME Marine to dredge the entrances and area in front of the Coast Guard Station at the Westport Marina. That work will be completed by clamshell dredge and it will begin on July 15 and last approximately one month.

Public Information Report
Kayla Dunlap reported that the Port wrapped up the 8th year of 4th grade tours. Ms. Dunlap thanked all of the partners and customers that contributed to the success of the program. Ms. Dunlap also thanked the Grays Harbor Community Foundation for reimbursement for all transportation and meal costs for the schools. Ms. Dunlap reported that she has already distributed a feedback survey to all of the participating teachers and looks forward to sharing the results with the commission.

Ms. Dunlap recapped that the summer public tour dates were announced at the end of May. The Port will once again be partnering with Channel Point Village who will be providing comfortable transportation for the attendees. The current dates include:

• June 28th – 3:00pm and 5pm
• July 12th – 3:00pm and 5pm
• August 8th – 3:00pm and 5pm

Ms. Dunlap reported that the Port was notified on June 1st that the Port was once again the Association of American Port Authorities Category 1 winner for the Overall Communications Excellence. The Port’s winning entry was for our Annual Business Report in the Events category, receiving a final score of 99/100.

Vessel Activity
Leonard Barnes reported for May 2018 the Port had calls from 10 deep-water vessels and 0 barges, which resulted in 292,970 MT of cargo being handled. Year-to-date, the Port has handled 43 ships, 7 barges and 1.39 million MT of cargo.

Public Comment:
N/A

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Leonard Barnes, Deputy Executive Director, requested authorization for the Executive Director to consent to the assignment and amendment of Lease No. 366 to Kevin Nations & Eric Nations.

Motion to authorize the Executive Director to consent to the assignment and amendment of Lease No. 366 to Kevin Nations & Eric Nations was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with a vote of 3-0.

Action Item No. 2
Leonard Barnes, Deputy Executive Director, requested authorization for the Executive Director to amend Lease Agreement No. 1019 with SSA Pacific, Inc.

Motion to authorize the Executive Director Motion to amend Lease Agreement No. 1019 with SSA Pacific, Inc. was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 3
Art Blauvelt, General Counsel, requested Commission pass a motion ratifying the actions of the Executive Director in declaring an emergency and awarding a contract to Rognlin’s, Inc., for the repair/replacement of Keys Road Well at the Satsop Business Park.

Motion to ratify the Executive Director’s finding of an emergency was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with a vote of 3-0.

Motion to ratify awarding of the contract to Rognlin’s pursuant to this finding of an emergency was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with a vote of 3-0.

Action Item No. 4
Alissa Shay, Manager of Business Development, requested authorization for the Executive Director to enter into lease 2018-L425 with Atlas Core LLC.

Atlas Core LLC proposes to lease Warehouse 15 and Warehouse 17 and surrounding land totaling approximately 15,000 square feet located in West Park at the Satsop Business Park for the purpose of a distribution and repair facility for modular computer storage containers equipped with blockchain data servers.

Motion to authorize the Executive Director to enter into lease 2018-L425 with Atlas Core LLC was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution 2947
Randy Lewis, Director of Environmental and Engineering Services, presented for Commission consideration, Resolution No. 2947, Resolution to Adopt the Port of Grays Harbor Six Year Transportation Improvement Program 2019-2024

Motion to adopt Resolution No. 2947: Resolution of Adoption of the Port of Grays Harbor Six Year Transportation Improvement Program (2019 – 2024) was made by Commissioner Thompson and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0. Resolution adopted.

Visitors/Public Comment:
N/A

NEW BUSINESS:

Mr. Nelson noted future meetings and events:
• June 14th – Special Commission Meeting
• June 19th-20th – AAPA Commissioners Seminar
• June 21st – Pilotage
• June 25th-27th – PNWA

There being no further business to come before the Commission, the Regular Meeting recessed at 10:49 a.m.

The Board then went into Executive Session to consider the acquisition, sale or lease of real estate and to discuss with Port’s legal counsel matters relating to agency enforcement actions, litigation or potential litigation. No action to be taken during Executive Session. It was announced that the Executive Session would last an hour and 15 minutes.

The Executive Session ended at 1:30 p.m. and the Regular Meeting adjourned at that time.