Port of Grays Harbor

Commission Meeting

January 8, 2019

The Port of Grays Harbor Commission Meeting for January 8, 2018 was called to order at 8:58 a.m.

Mike Johnson, Contract and Project Manager, led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Phil Papac - Commissioner
Stan Pinnick - Commissioner
Tom Quigg - Commissioner
Gary Nelson - Executive Director
Arthur Blauvelt - Legal Counsel
Mike Folkers - Director of Finance & Administration
Leonard Barnes - Deputy Executive Director
Alissa Shay - Manager of Business Development
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.
Kayla Dunlap - Public Affairs Manager
Molly Bold - Westport Business Manager
Keya Bernhardt - Communications & Administrative Coordinator
Lisa Benn - Accounting Manager

VISITORS
Cindy Taylor - Rainer Connect
Steve Ensley - City of Ocean Shores
Susan Conniry - City of Ocean Shores
Arnie Martin - Citizen
Darlene Camp - Citizen
Kim Roberts - Westport Winery
Vicki Cummings - CHOG
Dru Garson - Greater Grays Harbor Inc.

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Papac, seconded by Commissioner Quigg and unanimously approved, the Commission adopted the Minutes of December 11, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 273 through 281 inclusive

2. By motion made by Commissioner Quigg, seconded by Commissioner Papac and unanimously approved, the Commission adopted the Minutes of December 18, 2018 Special Commission Meeting as recorded in the Minutes Book No. 20 on pages 282 through 283 inclusive.

VOUCHERS:
1. By motion made by Commissioner Papac and seconded by Commissioner Quigg, the Commission unanimously approved for payment those Payroll Vouchers issued December 20, 2018 and January 4, 2019, ACH/Wire Transfers No. 99901129 through and including No. 99901141, and General Disbursement Vouchers No. 98718 through and including No. 98941 for payment in the amount of $4,052,093.25.

WORKSHOPS:
Lower Satsop River Erosion Update
Alissa Shay, reported on the Satsop River Erosion Update. The Business Park, was acquired by the Port of Grays Harbor on January 1, 2013, is served by two separate water sources. The potable water source is located adjacent to Keys Road on the Satsop River. The Ranney Well system on the Chehalis River provides raw water for industrial use, some of which is currently utilized by Grays Harbor Energy.

When the Port took ownership we learned that the Keys Road Well had been subject to significant erosion from the Satsop River over the course of its history due to a variety of factors. In 2006 the Grays Harbor Public Development Authority completed an emergency revetment wall to protect the well from significant erosion.

In 2018 Grays Harbor County hired Maul, Foster & Alongi to formalize a Satsop River Action Plan. Representatives from the Chehalis Basin Flood Authority, WDFW, WSDOT, Department of Ecology, USACE, Grays Harbor County, DNR, GH Conservation District and the Port held regular meetings to develop the plan. The final plan is expected to be released later this year.

Online Auctions of Surplus Port Personal Property
Lisa Benn, presented on the online auctions of Port Assets. In 2018, the Port identified several assets and equipment that are no longer needed for Port Operations. The Commission approved Resolution No. 2957 in September 2018 declaring several pieces of rolling stock surplus and authorizing their disposal. Many other low value items have been declared surplus by the Executive Director and their disposal authorized via online auction using GovDeals.com.

Ms. Benn reported that currently, 42 lots of auction items located in the Port Industrial Area are in an active online auction. Auction closings will be on January 15 & 16.

Public Information Report
Kayla Dunlap reported there were a few updates regarding BHP’s proposed export facility. The public hearing that was scheduled for December 19th has been postponed until February. More information about the project can be found on the BHP website.

Ms. Dunlap, reported that the 2019 Legislative session kicked off on Monday, January 14. Session will last 105 days and end April 28, 2019. Ms. Dunlap reported that there will be several budget related items to work through during the session.

Ms. Dunlap, reported that staff and Commissioners will plan on participating in the Port Day on January 29.

Ms. Dunlap, reported that the Westport Marina is the 11th largest commercial seafood landing port in the nation, with 150 million pounds landed. This was an increase of 42 million pounds over 2016’s volume. Westport now ranks 13th in the nation for value landed, equaling $64 million, which is a $5 million increase from last year.

Vessel Activity
Leonard Barnes reported for December 2018 the Port had calls from 10 deep-water vessels and 0 barges, which resulted in 164,242 MT of cargo being handled. Year-to-date, the Port has handled 111 ships, 14 barges and 2.54 million MT of cargo.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Johnson, requested authorization for the Executive Director to Call for Bids on Contract No. 1991, Yearout Drive Paving Project- Construction.

A motion to authorize the Executive Director to Call for Bids on Contract No. 1991, Yearout Drive Paving Project- Construction was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 2
Mike Johnson, requested authorization for the Executive Director to Call for Bids on Contract No. 1992, Marina Boat Launch Upland Improvements- Construction.

Motion to authorize the Executive Director to Call for Bids on Contract No. 1992, Marina Boat Launch Upland Improvements- Construction. was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Public Hearing:
The Regular Meeting was recessed for a public hearing on the Amendment of the Comprehensive Scheme of Harbor Improvements. Commissioner Pinnick opened the public hearing at 10:05 a.m.

Art Blauvelt, general counsel, provided background information to the Commission, confirmed publication of the notice of public hearing and described the reason for holding the public hearing.

Commissioner Pinnick called for public comments on the proposed Amendment of the Comprehensive Scheme of Harbor Improvements. There were no public comments.

Commissioner Pinnick closed the public hearing and reconvened the regular Commission meeting at 10:08 a.m.

Resolution 2970
Art Blauvelt presented for Commission consideration, Resolution No. 2970, A Resolution to Amendment of Comprehensive Scheme of Harbor Improvements and Authorization for improvement and development of the WSDOT SR 520 Site.

Motion to adopt Resolution No. 2970: Amendment of Comprehensive Scheme of Harbor Improvements and Authorization for improvement and development of the WSDOT SR 520 Site was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2968
Mike Folkers, presented for Commission consideration, Resolution No. 2968, A Resolution of The Port Commission of The Port of Grays Harbor Authorizing Anticipated Commission Travel During The Calendar Year 2019.

Motion to adopt Resolution No. 2968: A Resolution of The Port Commission of The Port of Grays Harbor Authorizing Anticipated Commission Travel During The Calendar Year 2019 was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2969
Art Blauvelt, presented for Commission consideration, Resolution No. 2969, A Resolution of The Port Commission of The Port of Grays Harbor Amending the 2019 Compensation Terms of Mr. Gary G. Nelson’s Employment as Executive Director of the Port District.

Motion to adopt Resolution No. 2969: A Resolution of The Port Commission of The Port of Grays Harbor Amending the 2019 Compensation Terms of Mr. Gary G. Nelson’s Employment as Executive Director of the Port District was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0. Resolution adopted.

Visitors/Public Comment:
N/A

NEW BUSINESS:
2019 Board Reorganization/2019 Commission Appointments
It was moved by Commissioner Pinnick and seconded by Commissioner Quigg that the 2018 Board be as follows:

President - Stan Pinnick
Vice President - Phil Papac
Secretary - Tom Quigg

Motion passed with all Commissioners in favor.

It was moved by Commissioner Pinnick and seconded by Commissioner Papac that the 2019 Commission Appointments be as follows:

Auditor Mike -v Folkers
Legal Counsel - Ingram, Zelasko & Goodwin
Executive Director - Gary G. Nelson

Motion passed with all Commissioners in favor.

It was moved by Commissioner Pinnick and seconded by Commissioner Quigg that the following assignments be made for 2019:
American Assn. of Port Authorities
Stan Pinnick - Commissioner
Gary Nelson - Staff Member

Association of Pacific Ports
Tom Quigg - Commissioner
Gary Nelson - Staff Member

Chehalis Basin Fisheries Task Force
Stan Pinnick - Commissioner
Molly Bold - Staff Member

Chehalis Basin Partnership
Phil Papac - Commissioner
Alissa Shay - Staff Member

G.H. Council of Governments
Phil Papac - Commissioner
Leonard Barnes - Staff Member

G.H. Shipping Club
Stan Pinnick - Commissioner
Shannon Anderson - Staff Member

Greater Grays Harbor Inc.
Tom Quigg - Commissioner
Leonard Barnes - Staff Member

Pacific NW Waterways Association
Phil Papac - Commissioner
Kayla Dunlap - Staff Member

Port of Grays Harbor Foundation
Stan Pinnick - Commissioner
Mike Folkers - Staff Member

Thurston County Chamber of Commerce
Phil Papac - Commissioner
Alissa Shay - Staff Member

Thurston County EDC
Tom Quigg - Commissioner
Alissa Shay - Staff Member

Washington Coast Sustainable Salmon Partnership
Tom Quigg - Commissioner
Molly Bold - Staff Member

Washington Public Ports Association
Stan Pinnick - Commissioner
Gary Nelson - Staff Member

County Transportation Issues
Stan Pinnick - Commissioner
Randy Lewis and Molly Bold - Staff Member

Ocean Fibre Planning
Phil Papac - Commissioner
Alissa Shay - Staff Member

Resiliency Planning
Tom Quigg - Commissioner
Randy Lewis - Staff Member

Community Development
Tom Quigg - Commissioner
Kayla Dunlap - Staff Member

Motions passed with all Commissioners in favor.

The Regular Meeting was recessed at 10:21 a.m. for the Annual Meetings of the Industrial Development Corporation, Port of Grays Harbor Foundation Members and Port of Grays Harbor Foundation Board of Directors.
The Port of Grays Harbor Foundation Board of Directors Meeting was closed at 10:35 a.m. and the Regular Commission Meeting reconvened.

NEW BUSINESS:
Mr. Nelson noted future meetings and events:
• January 16-18 – AAPA
• January 22 – GGHI Lunch with the Mayors
• February 12 – Shipping Club Event
• February 12 – Commission Meeting
• February 13 – Annual Business Report Event

There being no further business to come before the Commission, the Regular Meeting recessed at 10:35 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 30 minutes, an extension of 30 minutes was subsequently announced.

The Executive Session ended at 12:35 p.m. and the Regular Meeting adjourned at that time.