Port of Grays Harbor

Commission Meeting Agenda

February 12, 2019

The Port of Grays Harbor Commission Meeting for February 12, 2019 was called to order at 9:02 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
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 & Project Manager
Randy Lewis - Director of Environmental & Engineering Services
Seth Taylor - Marine Terminals Manager
Kayla Dunlap - Public Affairs Manager
Molly Bold - Westport Business Manager
Lisa Benn - Accounting Manager

VISITORS
Susan Conniry - Councilwoman, City of Ocean Shores
Kevin Goodrich - City of Westport
Kim Roberts - Westport Winery
Arnie Martin - Citizen
Linda Orgel - Citizen

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Quigg, seconded by Commissioner Papac and unanimously approved, the Commission adopted the Minutes of January 8, 2019 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 284 through 291 inclusive.

2. An Amendment of the Minutes of September 11, 2018 Regular Meeting was presented for consideration. By motion made by Commissioner Papac, seconded by Commissioner Quigg and unanimously approved, the Commission amended the proposed amendment by changing the wording to reflect that only two Commissioners were present and voted on each of the resolutions contained in the amendment.

By motion made by Commissioner Quigg, seconded by Commissioner Papac and unanimously approved, the Commission adopted the amended Amendment of the Minutes of September 11, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on page 292.

VOUCHERS:
1. By motion made by Commissioner Papac and seconded by Commissioner Quigg, the Commission unanimously approved for payment those Payroll Vouchers issued January 19, 2019 and February 5, 2019, ACH/Wire Transfers No. 99901142 through and including No. 99901152, and General Disbursement Vouchers No. 98942 through and including No. 99150 for payment in the amount of $3,906,430.31.

REPORTS:
Westport Projects Update
Molly Bold, Westport Business Manager, provided a PowerPoint presentation on upcoming planned investment in the Westport area in 2019-2020 by the Port. Projects that are scheduled to be accomplished include:
• Marina Dredging - $3.1 Million
• Boat Launch Parking Improvements - $850,000-$1.05 Million
• Yearout Drive Paving - $600,000
• Float 5 Bathroom & Shower Construction - $175,000
• Garbage Station Improvements - $60,000
• Proximity System - $7,000
• Various Small Projects: replacement of street trees, planting of bulbs, additional aggregate trash cans installed, safety ladders installed throughout marina, replacement of signs at the heads of the floats

In addition, the U.S. Army Corps of Engineers has several projects in the Westport area to be completed in 2019:
• Breakwater A Repairs
• Point Chehalis Revetment Repair
• South Jetty Breach Fill

Pilotage Report
Mike Folkers, Director of Finance & Administration, reported that since Captain D’Angelo took a medical leave at the end of August, 2018, the Port has had only one Pilot for the Grays Harbor District, Captain White. Captain D’Angelo is scheduled to return to full duty March 1, 2019. However, having only one pilot has really drawn attention to the need for emergency pilotage backup for the Grays Harbor District.

The Port has been looking to hire a third pilot for Grays Harbor for some time. Mr. Folkers was pleased to announce that the Board of Pilotage Commissioners held a pilot exam and simulator test to establish a pilot list for both the Puget Sound District and the Grays Harbor District. One of the top candidates has chosen Grays Harbor. Kahai Wodehouse started as an employee of the Port on February 6, 2019 and will be working on training with the existing Grays Harbor Pilots over the next year.

Pilot Boat Replacement Update
Randy Lewis, Director of Environmental & Engineering Services, stated that the Port has been discussing the need to replace the pilot boat Chehalis for several years. In 2017, a team was formed to review vessels specifications and options and assemble a list of desired specifications for a replacement vessel. Using that information, active research began in early December 2018 to look for a used vessel with a cost range of $500,000 to $1.5 million. Potential brokers were contacted. It became clear that there weren’t any vessels available in that cost range that were suitable.

Research was expanded to used vessels beyond the original cost range and new build vessels. The Port plans to establish an interview team in order to invite representatives from the manufacturers to meet with the team and get into the specific of the models and their companies. After interviews and possible visits to manufacturers to see their products and facilities, the team should be ready to make a purchase recommendation to the Commission.

Bowerman Airport Drainage Project Update
Randy Lewis, Director of Environmental & Engineering Services, provided a PowerPoint presentation concerning the upcoming construction project scheduled for July 8 through September 4 at Bowerman Airport this summer. During this time, the airport will have to be shut down. We are working with the FAA and the contractor to see if we can accommodate flights by tenants on a case by case basis with the understanding on the part of the user that the runway is in a closed status. We are waiting for confirmation from the FAA as to whether this will be an option. Tenants have been notified of the timing and impacts of the project.

Construction will include:
• Regrading of runway and taxiway shoulders to move water away from those surfaces
• Replacing drainage infrastructure
• Cleaning and repairing existing outfalls
• Replacing runway edge lighting
• Repairing the segmented navigation circle

Public Information Report
Kayla Dunlap, Public Affairs Manager, reported that the BHP Shoreline Public Hearing remains postponed. More information about the project can be found on the BHP website.

Ms. Dunlap reported that the 2019 Legislative session is scheduled to end April 28, 2019. She also stated that the Port’s 6th Annual Business Report is scheduled for February 13, 2019 at the Rotary Log Pavilion at 7:30 a.m.

Ms. Dunlap announced that the Port is currently accepting applications for the Communications and Administrative Coordinator position recently vacated by Keya Bernhardt.

Vessel Activity
Leonard Barnes reported for January 2019, the Port had calls from 8 deep-water vessels and 1 barge, which resulted in 219,376 MT of cargo being handled. Maintenance dredging of the Port’s Terminals No. 2 and No. 4 has been completed.

Public Comment
Arnie Martin of Hoquiam inquired why a ship appeared to stop at the mouth of the Hoquiam River over the weekend and not blow its whistle. Leonard Barnes, Deputy Executive Director, said that he would check with the Pilot and get back to Mr. Martin.

WORKSHOP:
PGH Year End Financial Review
Director of Finance & Administration Mike Folkers reported on the 2018 year-end financial review. The Port continues to be a positive business environment for economic growth and creation of jobs. 2018 expanded the flow of trade and transportation through the Grays Harbor region.

2018 saw record operating revenues for the Port at $35 million. Operating Expenses were $31.4 million, including $2.5 million in debt service payments.

The Port continues to follow its fiscal policies:
• Manage operating revenues and expenses for a positive operating cash flow
• Preserve Port cash reserves to leverage partnerships, continue and upgrade the Port’s bond rating, and for future strategic business purposes
• Property taxes are dedicated to infrastructure investments creating public assets
• Maintain an adequate debt coverage ratio for future capacity

Public Comment
None

NEW BUSINESS:
Executive Director Gary Nelson listed several upcoming calendar items:
• Evening of February 12, Grays Harbor Shipping Club Crab Feed
• February 15 – Westport dredging project walk thru
• February 20 – Meeting with U.S. Army Corp of Engineers to begin the reconciliation process for the Deeper Draft project expenditures
• February 21 – Washington State Board of Pilotage Meeting
• February 25 – Seafood Day at the Legislature
• February 26 – Greater Grays Harbor, Inc. Annual Membership Meeting

Susan Conniry, Councilperson for the City of Ocean Shores, was introduced as the Council’s Liaison to the Port.

Commissioner Stan Pinnick asked staff to please review the Port’s street/roads naming policy and report back to the Commission. He would like to see a Port street or road renamed in honor of late Commissioner Jack Thompson, possibly one like East Terminal Way.

Commissioner Phil Papac commended Port Staff for the great job they did at the Public Ports Day on January 29 at the Washington Legislature.

Commissioner Tom Quigg reported that both he and Commissioner Papac recently attended Washington Public Ports Association training for new commissioners. Specific training was provided on the Open Public Meetings Act and Public Records.

The Regular Meeting was recessed at 10:31 a.m. for a Meeting of the Industrial Development Corporation.
The Port of Grays Harbor Industrial Development Corporation Meeting was closed at 10:33 a.m. and the Regular Commission Meeting reconvened.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:34 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.

The Executive Session ended at 12:20 p.m. and the Regular Meeting adjourned at that time.