Port of Grays Harbor

Commission Meeting

March 12, 2019

The Port of Grays Harbor Commission Meeting for March 12, 2019 was called to order at 9:00 a.m.

Randy Lewis, Director of Environmental & Engineering Services, led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Stan Pinnick - Commissioner
Phil Papac - 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
Shannon Anderson - Business & Trade Development Assistant
Molly Bold - Westport Business Manager
Lisa Benn - Accounting Manager
Chris Hunt - IT Manager
Kahai Wodehouse - Grays Harbor Pilot Trainee

VISITORS
Susan Conniry - Councilwoman, City of Ocean Shores
Cindy Taylor - Rainier Connect
Amie Martin - Citizen
Jeff Van Schaick - Genesee &,Wyoming
Steve Schmitz - KPFF
Shelli Hopsecger - CCAI
Scott Boettcher - Chehalis River Basin Flood Authority

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 ofFebruary 12, 2019 Regular Commission Meeting· as recorded in the Minutes Book No. 20 on pages 293 through 299 inclusive.

VOUCHERS:
1. By motion made by Commissioner Papac and seconded by Commissioner Quigg, the Commission unanimously approved for payment those Payroll Vouchers issued February 20, 2019 and March 5, 2019, ACH/Wire Transfers No. 99901153 through and including No. 99901164, and General Disbursement Vouchers No. 99151 through and including No. 99368 for payment in the amount of $2,594,653.53.

WORKSHOP:
Maintaining Growth Strategic Workshop: Review of Operations, Growth Strategies, Property Utilization & Financing for Marine Industrial Area and Industrial Properties

Shelli Hopsecger led Commissioners and staff through a review of key business strategies and available resources as well as the Port's properties division impacts, roles in Port and Community development, leased profile, and 10-year operating revenues and expenses trends. Existing conditions were compared to the 2005 Industrial Property Master Plan conditions which showed the large amount of change that has occurred over the last 14 years in the Port Industrial Area.

A patchwork of available Port properties for lease throughout Grays Harbor County were reviewed. Also discussed were:
• Port's Lease Policy
• Property goals, objectives and criteria
• Property zoning, development and ownership
• Asset life: repair, replace or remove

Commissioners and staff remain confident in the existing Lease Policy. Strategic priorities continue to guide staff and Commissioners in evaluating opportunities:
• Organic growth of existing tenants
• Strategic development of brownfields
• In-fill development in the Port Industrial Area
• Maintain and replace assets as needed
• Encourage usage of infrastructure

REPORTS:
Final Draft Lower Satsop Plan
Alissa Shay, Manager of Business Development at the Satsop Business Park, spoke about the impacts the lower Satsop River has had on the Port's Keys Road well. The well is the Park's potable water supply source. It has been impacted by the dynamic movement of the course of the river which has prompted the Port to develop a backup source for potable water to the Park should the Keys Road well fail.

Ms. Shay introduced Scott Boettcher of the Chehalis River Basin Flood Authority. Grays Harbor County, in partnership with the Grays Harbor Conservation District and supported by funding from the Chehalis River Basin Flood Authority, has developed the Satsop River Investment Plan through a collaborative effort with public agencies and private landowners to develop shared goals and a prioritized set of projects to reduce risk of erosion while enhancing habitat for fish and wildlife. Mr. Boettcher and Ms. Shay have participated in a public agency advisory committee reviewing the planning project and its goals.

The Investment Plan provides a road map indicating which projects should be implemented on the Satsop River in order to address the key issues of erosion, flooding, and loss of farm land. The Plan outlines near-, medium-, and long-term projects to help mitigate the effects of the ever-changing Lower Satsop River. On November 27, 2018, an avulsion in the river's channel exacerbated, intensified and galvanized the need for immediate investment as soon as possible.

Puget Sound & Pacific Railroad Update
Deputy Executive Director Leonard Barnes introduced Jeff Van Schaick, Western Region Assistant Vice President for Government & Industrial Affairs with the Genesee & Wyoming (G&W). The G&W is the largest short line railroad holding company in the world and owner of Grays Harbor's short line, Puget Sound & Pacific Railroad (PSAP). PSAP has 125 route miles of owned and leased traekin Washington. Over $20 million in infrastructure investments have been made by the PSAP in the last five years. With pending grant funding from the Washington Freight Rail Assistance Program, the PSAP plans to rehabilitate the rail bridge across the Wishkah River in 2019/2020.

Public Information Report
Molly Bold, Westport Business Manager, reported on Washington Seafood Day held February 25 at the Washington State Legislature. Hosted by the Coalition of Coastal Fisheries, the event served over 300 people including legislators and their staffs. The event was very well-received.

Ms. Bold stated that today is the 58t h day of the 2019 legislative session. The current session is scheduled to end April 28, 2019. We have submitted a capital budget request, along with the Port of Willapa, for $575,000 to fund the design and engineering phase of Applied Ocean Energy's Renewable Ocean Energy Demonstration Project. Senator Takko and Representative Walsh are the sponsors of the request for their respective chambers.

On Monday, February 25, the City of Westport hosted a public hearing on mobile seafood buying requirements. Roughly 40 people attended, including fishermen, processors, and live buyers. Many fishermen expressed their support for access to live buyers. Mike Cornman expressed his frustration with inconsistent. co.de and zoning enforcement. The Mayor indicated the City would evaluate feedback.

The Port will be hosting 32 sophomores and juniors from Ocosta and Hoquiam High Schools for a one-hour tour on Friday, March 22. The tour is part of a Career Pathway Day which is a collaboration between Greater Grays Harbor, Grays Harbor College and Grays Harbor Youth Works. The group visiting the Port will be focused on natural resource-based careers.

Vessel Activity
Leonard Barnes reported for February 2019, the Port had calls from 5 deep-water vessels and O barges, which resulted in 202,246 MT of cargo being handled. Year­ to-date, the Port has had 13 ships, 1 barge and handled 423,728 MT of cargo.

Public Comment
Arnie Martin of Hoquiam appreciated the comments by Mr. Van Schaick. of the Genesee & Wyoming. Mr. Martin would like to see instrumenting of rail bridges in the area.

ACTION/RESOLUTION ITEMS: .
Action Item No. 1
Director of Finance & Administration Mike Folkers reported that the Port has received an offer to settle an insurance claim for damages at the Westport Marina. On August 1, 2017, the fishing vessel Seamaster struck the dock at Float 15 causing damage to the facilities. A damage assessment was performed by TransOlympic Engineering, Inc. Rognlin's was hired to make repairs. Total cost of the project was $177,627.69. Markel American Insurance, the vessel's insurance provider at the time of the incident, has made an offer of $139,517.69 to settle this claim. Staff believes this is a fair offer due to the age of the facilities at the time of the incident.

Motion to authorize the Executive Director to accept the offer of $139,517.69 from Markel American Insurance for the incident involving the FN Seamaster at Float 15 on August 1, 2017 was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 2
Mike -.Johnson, Contract & Project Manager, requested authorization to award Contract No. 1991, Yearout Drive Paving. Four bids were received from the following All include sales tax:
• Rognlin's, Inc. - $564,672.00
• Quigg Brothers, Inc. - $693,991.68
• Nova Contracting, Inc. - $737,664.00
• Brumfield Construction, Inc. - $762,285.98

Motion to authorize the Executive Director to award Contract No. 1991, Yearout Drive Paving to Rognlin's, Inc. in the amount of $564,672.00 was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 3
Mike Johnson, Contract & Project Manager, requested authorization to award Contract No. 1992, Marina Boat Launch Upland Improvements. Improvements include paving the entire parking lot, installation of a new restroom facility, a ,fish­ cleaning station, a boat and trailer wash-down facility, an automated pay station, an information kiosk and site furniture (picnic table, benches, trash can). Three bids were received from the following, and include sales tax

• Rognlin's, Inc. - $976,495.45
• Quigg Brothers, Inc. - $1,099,424.54
• Nova Contracting, Inc. - $1,290,308.16

Motion to authorize the Executive Director to award Contract No. 1992, Marina Boat Launch Upland Improvements to Rognlin's, Inc. in the amount of $976,495.45 was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 4
Westport Business Manager Molly Bold presented proposed amendments to the Westport Marina Tariff increasing daily and monthly moorage, trailer storage, and boat launch use fees effective May 1, 2019.

Motion to approve the recommended rate increases and amend the Westport Marina Tariff accordingly was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 5
Mike Johnson, Contract & Project Manager, requested authorization to a;war Contract No. 1974, Westport Marina Dumpster Area Improvements. Improvements consist of construction and installation of a new recycling and refuse station across from the Westport Marina office, including installation of concrete, fencing with gates, an electronic gate lock, and steps and railings for access to the dumpsters. Three bids were received from the following, and include sales tax: ·
• Brumfield Construction, Inc. - $58,456.06
• Quigg Brothers, Inc. - $83,895.68
• Rognlin's, Inc. - $99,025.68

Motion to authorize the Executive Director to award Contract No. 1974, Westport Marina Dumpster Area Improvements to Brumfield Construction, Inc. in the amount of $58,456.06 was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Resolution 2971 .
Mike Johnson, Contract & Project Manager, stated that the work under Contract No.
1983, Terminal Maintenance Dredging, had been completed by American Construction Company, Inc. and accepted by Port Staff. Total cost of the contract was $606,923.14, including sales tax. 43,262 cubic yards of material was removed.

Motion to adopt Resolution No. 2971: Completion and Acceptance of Contract No. 1983, Terminal Maintenance Dredging was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2972
Molly Bold, Westport Business Manager, proposed a resolution to authorize the auction of abandoned vessels at the Westport Marina. The F/V Jenny Blue was seized for non-payment of moorage charges and the F/V Pacific Bay was seized for failure to comply with the Marina Tariff Insurance Requirement. Letters were sent to the owners at the time of seizure in November 2018 and again this month advising them that the vessels may be sold at public auction if they fail to comply with the terms of the Westport Marina Tariff.

Motion to adopt Resolution No. 2972: Authorizing the Sale of Abandoned Vessels and Requiring Successful Bidders to Provide Proof of Marine Insurance, Remove the Vessels from the Westport Marina within 60 Days, and Post Surety Bonds to Guarantee Removal of the Vessels was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0. Resolution adopted.

Public Comment
None

NEW BUSINESS:
Executive Director Gary Nelson listed several upcoming calendar items:
• Evening of March 12 - Greater Grays Harbor Inc. Business After Hours, Hoquiam Brewing Company
• March 15 - Friends Landing Playground ribbon cutting ceremony, 4 p.m.
• March 20 - WSDOT Heron Street Bridge Open House
• March 21 - Washington State Board of Pilotage Meeting, Mike Folkers to attend
• March 26 - Greater Grays Harbor Inc. Business Forum Lunch
• March 27 - Marina User Group Meeting, McCausland Hall in Westport, 10 a.m.

It was announced that Amy Carlson had been hired by the Port to fill the position of Communications and Administrative Coordinator. Ms. Carlson will start March 18.

There being no further business to come before the Commission, the Regular Meeting recessed at 11:44 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 90 minutes.

The Executive Session ended at 1:15 p.m. and the Regular Meeting adjourned at that time.