Port of Grays Harbor

Commission Meeting Agenda

December 12, 2017

The Port of Grays Harbor Commission Meeting for December 12, 2017 was called to order at 9:01 a.m.

Gary Nelson, Executive Director led the meeting in the Pledge of Allegiance.

Notary Public Art Blauvelt administered the Oath of Office to Commissioner-Elect Jack Thompson.

Those in attendance at the meeting were as follows:

Chuck Caldwell - Commissioner
Stan Pinnick - Commissioner
Jack Thompson - Commissioner
Gary Nelson - Executive Director
Arthur Blauvelt - Legal Counsel
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
Molly Bold - Westport Business Manager
Alissa Shay - Manager of Business Development
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Marine Terminals Manager
Lisa Benn - Accounting Manager
Keya Bernhardt - Communications & Administrative Coordinator

Rob Hanny - Grays Harbor PUD
Arnie Martin - GHAS
Linda Orgel - CCH
Vladimir Shepsis - Applied Ocean Energy Corporation
Brandi Bednarik - Grays Harbor Historical Seaport
Steve Shumate - Chief Criminal Deputy, Grays Harbor County
Frank Franciscovich - Grenville Properties, LLC

Items discussed and action taken where required are as follows:

1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of November 14, 2017, Commission Meeting as recorded in the Minutes Book No. 20 on pages 160 through 166 inclusive.

1. By motion made by Commissioner Pinnick and seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued November 20, 2017 and December 5, 2017, ACH/Wire Transfers No. 99900948 through and including No. 99900959, and General Disbursement Vouchers No. 95783 through and including No. 95995 for payment in the amount of $2,505,456.74.

Report on Satsop Business Park Proposal to WA State Dept. of Enterprise Services
Alissa Shay reported on the Satsop Business Park Proposal to the WA State Department of Enterprise Services. The proposal includes the Washington State Department of Social Security leasing and developing the Technology Campus – 150 Technology Way at the Satsop Business Park.

Alissa introduced Frank Franciscovich of Grenville Properties, LLC. Mr. Franciscovich reported that he submitted the proposal a week ago and there are four other counties in consideration for the Employment Security location. A decision should be made by January on the chosen location.

Commissioner Pinnick asked how many employees will be employed at this location.

Alissa Shay responded with roughly 100 employees.

Grays Harbor County - City of Hoquiam Briefing on the Recent Events
Leonard Barnes introduced Steve Shumate, Chief Criminal Deputy at the Grays Harbor County Sheriff. Mr. Shumate reported on the recent drug activity and arrests made in Grays Harbor County involving Chinese Nationals. The raid was a massive operation over three counties including Grays Harbor, Thurston, and Pacific. There were 60 different residential locations involved, with the confiscation of 33 vehicles, over $600,000 worth of plants, and massive amounts of fertilizer. Mr. Shumate thanked the Port for allowing them to house the products and reported that the fertilizer would be removed and disposed of properly by a private contractor.

Commissioner Pinnick asked what happened to the plants.

Mr. Shumate responded with they were taken to Oregon where they were incinerated.

Commissioner Pinnick asked if the investigation was still ongoing.

Mr. Shumate responded with yes the task force is still investigating. They have multiple people in custody and are working with a translator to get as much information as they can.

Grays Harbor Historical Seaport Sea School Report
Molly Bold, Westport Marina Manager introduced Brandi Bednarik, Executive Director of the Historical Seaport. The Historical Seaport is an educational non- profit established by the city of Aberdeen, WA in 1986. Although they are a public entity they are independently managed as a private 501(c) (3).

They provide educational, vocational, recreational and ambassadorial activities and experiences that promote and preserve the maritime history of Grays Harbor, the Pacific Northwest, and our nation while serving the needs of communities. They do this through immersive learning opportunities for children and adults, sail training, and entertaining experiences aboard the tall ships Lady Washington and Hawaiian Chieftain.

The Historical Seaport visits dozens of communities in Washington, Oregon, California, and British Columbia. Their Education program includes the Voyage Explorers, a curriculum aligned, hands-on heritage field trip for grades 4, 5, and 6. This voyage teaches students the history of Pacific navigation, trade, and life at sea. Through this organization, there was over $30,000 in scholarships awarded.

The Historical Seaports public programs include, dockside tours, adventure sails, evening sails, and battle sails. Their private programs include charters, transits, passages, and film and television programs.

Ms. Bednarik reported that the Seaport Landing in Aberdeen, WA is planning a redesign and will be a world-class mixed-use waterfront development reflecting the rich history and character of Grays Harbor and the Olympic Peninsula.

The impacts of the Historical Seaport for 2017 included over 70,000 people served, the creation of Sea School to support training for next generation of commercial maritime professionals, and partnering with the Department of Ecology to remove the restrictive covenant on the Seaport Landing site.

Renewable Wave Energy at North Pacific
Gary Nelson introduced Vladimir Shepsis of Applied Ocean Energy Corporation. Mr. Shepsis reported on the assessment of available wave energy on the Pacific Coastline, an overview of existing technologies, and new renewable wave energy technology.

The assessment of current available wave energy is currently done through a buoy system in the Pacific Ocean. The buoy systems allow scientist to measure the amount of energy produced by each wave. The annual average wave power per linear meter of wave crest equals 29kW/m that corresponds to the energy of 250 MWh/year per linear meter.

Currently, there are multiple existing technologies and devices used today to store and distribute wave energy. Some of those devices include oscillating water columns, an inverted pendulum, and large buoy like systems. Existing devices transmit power into the power grid with no storage capacity for the produced power (demand on energy in the grid may not coincide with the rate of wave energy). Existing devices are designed to extract wave energy by moving parts in a water column. The durability of such devices is likely to be limited. The Existing devices occupy a relatively small footprint but require many of such devices to produce commercially valuable energy.

Mr. Shepsis solution to the existing devices would be to build barges with a converter, generator, hydrogen production plant, and an area to store the hydrogen. By being able to create a power system on an ocean barge or ship the ability to move this system becomes easier.

Mr. Shepis would like the support of local communities including, leadership with obtaining State, and Federal, and Private Grants, assistance during Pilot Project, leadership with The State of Washington, and any other possible help. He thanked the Port for the opportunity to share his vision of renewable wave energy in the North Pacific.

Grays Harbor Navigation Project Update
Randy Lewis reported on the Grays Harbor Navigation project update. The inner harbor dredging was awarded to American Construction Co. The current work window is from July 16th, 2017 thru Feb 14th, 2018. The major work area status is 835 Cubic Yards removed. This includes O&M and deepening of Crossover Reach of approximately 165K Cubic Yards complete, Cow point complete and CP32 20K Cubic Yards of unsuitable material successfully removed and placed upland. For 2018 the final work window begins in July 2018, where there will be continued work with the O&M and dredging of Hoquiam, summer thru September 2018.

With Rognlin’s Construction, Us Army Divers, and USACE the successful removal of a 27ft sunken vessel was completed in August 2017. The vessel was a 27ft fiberglass stern picker.

The new inner harbor dredging contract will begin December 2018. Materials for this dredging will be placed at Point Chehalis and South Jetty Disposal sites. Dredging (fall 2018) will require a new 15-year environmental package.

For the year 2018 outer harbor dredging will be April 1st thru May 31st, 2018. The estimate for maintenance dredging only is 800,000 cubic yards. Future dredging (Spring 2019) will require a new 10-year environmental package.

Public Information Report
Kayla Dunlap reported that the State’s capital budget will not be addressed until next session which begins on January 8th and is scheduled to end on March 8th.

The Port wrapped up community outreach last month and will start over with District 1 early next year.

There will be two on-site Commission meetings to focus on continued development in 2018; June at Satsop and September at Westport.

Next month we will also present and review the 2018 communications plan which will include an overhaul of our website

Vessel Activity
Leonard Barnes reported for November 2017 that the Port had calls from eleven deepwater vessels and zero barges, which resulted in 222,720 MT of cargo being handled. Year-to-date, the Port has handled 97 ships, 8 barges and 1.9 million MT of cargo.

Public Comment:
No Public Comment

Action Item No. 1
Molly Bold requested Authorization to Proceed on Department of Enterprise Services Work Order Request No. 1520, Removal of Derelict Vessels.

Motion to authorize the Executive Director to Proceed on Department of Enterprise Services Work Order Request No. 1520, Removal of Derelict Vessels was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution No. 2940
Mary Nelson presented for Commission consideration, Resolution No. 2940, authorizing Amendment to Salary and Benefit Resolution.

Motion to adopt Resolution No. 2940: Amendment to Salary and Benefit Resolution was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Resolution No. 2941
Mary Nelson presented for Commission consideration, Resolution No. 2941, authorizing Annual Authorization to Sell Port Surplus Personal Property.

Motion to adopt Resolution No. 2941: Annual Authorization to Sell Port Surplus Personal Property was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution No. 2938
Art Blauvelt presented for Commission consideration, Resolution No. 2938, authorizing Salary Adjustment for Executive Director.

Motion to adopt Resolution No. 2938: Salary Adjustment for Executive Director was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution No. 2939
Alissa Shay presented for Commission consideration, Resolution No. 2939, Recommendation to Approve Interlocal Agreement Between PGH and GHPUD for a Transoceanic Fiber Optic Feasibility Study.

Motion to adopt Resolution No. 2939: Recommendation to Approve Interlocal Agreement Between PGH and GHPUD for a Transoceanic Fiber Optic Feasibility Study was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Visitors/Public Comment:

Mr. Nelson noted future meeting and events:
• December 13th – Audit Exit Interview
• January 5th – Legislative Send-Off meeting
• January 9th –Commission Meeting

There being no further business to come before the Commission, the Regular Meeting recessed at 11:18 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 1:15 p.m. and the Regular Meeting adjourned at that time.