Port of Grays Harbor

Commission Meeting

April 9, 2019

The Port of Grays Harbor Commission Meeting for April 9, 2019 was called to order at 9:01 a.m.

Mike Johnson, Contract & Project Manager, 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
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Marine Terminals Manager
Shannon Anderson - Business & Trade Development Assistant
Molly Bold - Westport Business Manager
Lisa Benn - Accounting Manager
Amy Carlson - Communications & Administrative Coordinator

VISITORS
Paula Akerlund - Tsunami Committee
Harry Carthum - Tsunami Committee
Cindy Taylor - Rainier Connect
John Hicks - USACE
Elizabeth Chien - USACE
Arnie Martin - GHAS
Linda Orgel - FOGH
Darlene Camp - Citizen
Kevin Goodrich - City of Westport
Scott Olmstead - Paneltech

Amy Carlson was introduced as the Port’s new Communications & Administrative Coordinator.

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 March 12, 2019 Regular Commission Meeting as recorded in the Minutes Book No. 21 on pages 1 through 8 inclusive.

VOUCHERS:
1. By motion made by Commissioner Quigg and seconded by Commissioner Papac, the Commission unanimously approved for payment those Payroll Vouchers issued March 20, 2019 and April 5, 2019, ACH/Wire Transfers No. 99901165 through and including No. 99901177, and General Disbursement Vouchers No. 99369 through and including No. 99585 for payment in the amount of $2,528,369.83.

REPORTS:
U.S. Army Corps of Engineers Update
Elizabeth Chien, Coastal Navigation Program Manager, reported that the Grays Harbor Navigation Channel stretches through the harbor from Aberdeen to open water. Deepening of Cow Point, Turning Basin, North Reach, Crossover Reach and South Reach to -38 plus -2 feet of advanced maintenance and -2 feet allowable over depth were completed in December 2018. Total material removed was 4,320,248 cubic yards (CY) and included deepening and operations and maintenance dredge spoils.

First work window of the new Inner Harbor contract, awarded to HME, began December 2018. 600,000 CY have been removed so far from Cow Point and Turning Basin. Due to environmental requirements, inner harbor dredging is allowed from July 15 through February 14 with a two-month break starting in mid-September due to Tribal fishing. The Outer Harbor dredging work window is in April and May. Westport Marina entrance dredging was completed summer of 2018. This project included SE Entrance Channel, Turning Basin and NW Entrance Channel with 35,000 CY being removed. Outer Harbor dredging project has an estimated quantity of 700,000 CY with a planned start date of mid-late-April. Work areas will include the bar, entrance, and Point Chehalis. Sturgeon monitoring will be conducted aboard the ESSAYONS in May.

Point Chehalis revetment repair project was completed January 29, 2019 and will be the last repairs for awhile. Repairs to the damaged section of the revetment were made using 11,613 tons of filter and armor stone. Westhaven Breach fill repair project will take place mid-late-September 2019 through January 2020 in coordination with Seattle District, WA State Parks, Port of Gays Harbor and City of Westport. Approximately 50 to 75 trucks per day will be importing 30,000 CY to 45,000 CY of sand using a pre-determined back road. Westhaven Breakwater repair are critical before the structure fails due to erosion. Contract will be awarded late 2019 with construction estimated to begin mid-July 2020.

North Jetty repair is in the early planning stages with initial repairs taking place along the jetty that is attached to land. Repairs will be completed in smaller sections over several years, similar to the strategy used for the Point. Chehalis revetment repairs. Long-term plans include work on the open-water portion of the jetty. Earliest construction would be in 2020, dependent on congressional funding.

In 2019, a call for pilot projects was made and the Grays Harbor South Jetty project was one of ten proposals selected. With the Washington State Department of Ecology the non-federal sponsor it will be 100% federally funded. The purpose would be to place 250,000 CY of dredged material from the federal navigation channel onto the South Beach shoreline to mitigate beach and dune erosion. Details will follow as the project matures with an early possible implementation date of 2021.

City of Westport Tsunami Committee Report
Harry Carthum, Westport Tsunami Committee, reports that the Tsunami Committee with the support of the City of Westport is in their second year and is now an official appointed committee of the City. Meetings are held on a monthly basis with the focus being on development and funding of vertical evacuation structures.

Paula Akerlund, Westport Tsunami Committee, stated that the South Beach community is aware of the 15-minute window to get to a safe location in the event of an earthquake followed by a tsunami. Due to the lack of high ground in the area, an emphasis is made on vertical evacuation structures with the first of its kind in North America being constructed by the Ocosta School District and locally funded. The Shoalwater Bay Tribe is currently moving to build their own vertical evacuation structure. This will be the second of its kind in North America with both being located in the South Beach area.

Steps are currently being taken by the Committee to submit a FEMA Advance Assistance Grant application. Technical evaluation of possible sites is the first step in the process, type of possible mitigation work being second on the list and finally a benefit cost analysis. Three locations are currently being looked at as possible building sites for a vertical evacuation structure that would focus on the Marina District in the form of a multi-use structure. With most of those of those locations being port property, participation is asked of the Port in the location selection, possible property use and grant process.

School Tour Program
Kayla Dunlap, Public Affairs Manager, reported that 2019 will be the ninth year for the School Tour Program. Betsy Seidel will be re-joining the tours, after not being available in 2018. Ms. Dunlap gave a brief overview and the purpose behind the program.

Beforehand, the participating fourth-grade teachers are provided curriculum packets for their students. Classes are encouraged, but not required to complete these packets before their scheduled tour so that the students can participate along the way. Ms. Dunlap stated that the tours will begin with an updated presentation created by Amy Carlson, Communications and Administrative Coordinator, on a new presentation platform. All visitors will leave with goodie bags that will include the most recent Newsletter and items from program partners. Paneltech, AGP, Pasha and REG have been valued partners in the past.

Ms. Dunlap expressed that for the third year in a row, they will be partnering with the Grays Harbor Community Foundation via The Gladys Phillips Cultural Tours Grant. This allows the schools to apply for reimbursement of mileage, the cost of the bus driver and meal allowance of up to $10 per student and chaperone. Tours will be taking place the last two weeks of May and the first two weeks in June.

Satsop Business Park will be offering walking tours again this year, scheduled May through September and are currently taking reservations. The Port of Grays Harbor will announce their public tour dates in May which will take place June through August.

Public Information Report
Kayla Dunlap, Public Affairs Manager, reported that April 9, 2019 was the 86th day of the 105-day legislative session. The current session is scheduled to end April 28, 2019. Several items related to ports remain alive including Port Commissioner race campaign contribution limits, Community Economic Revitalization Board (CERB) funding, general aviation airport funding, Model Toxics Control Act (MTCA) funding and transportation funding. April 9 is the deadline in which fiscal bills must pass.

The Capital Budget request for the renewable wave energy project received full funding in the House’s capital budget which came out on March 25th. It did not receive funding in the Senate’s version. Ms. Dunlap stated that they will continue to work with the Coastal Caucus through the budget process.

Next week, the Port will be hosting a group of 20 marketing students from Mary M. Knight High School for a tour of both the Port facilities and the Satsop Business Park.

Vessel Activity
Leonard Barnes reported for March 2019, the Port had calls from 7 deep-water vessels and 2 barges, which resulted in 240,572.776 MT of cargo being handled. Year-to-date, the Port has had 20 ships, 3 barges and handled 664,304 MT of cargo.

Public Comment
Arnie Martin of Hoquiam thanked the Port, Joseph Shay and Shannon Anderson for their support with the Shorebird Festival and related Poster Contest. He extended an invitation all to attend the upcoming events including the banquet on May 4, 2019. Mr. Martin continued by expressing his concern regarding the bridges used by the railroad and suggested rail bridge improvements be considered in the BHP Potash project.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Deputy Executive Director, Leonard Barnes, requested action in the form of an amendment to Lease No. 1018 with Paneltech International, LLC. Paneltech is requesting to expand their premises to include the remaining 20,000 square feet of Warehouse D, set a new 15-year and two, two-month term beginning July 1, 2006 and ending August 31, 2021 with two successive five-year options to renew. The amendment would also include an increase in rent from $4,600.00 per month to $9,200 per month. All other aspects of the lease would remain the same.

Motion to approve the Fifth Amendment of Lease No. 1018 for Paneltech International, LLC was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 2
Leonard Barnes, Deputy Executive Director, requested approval of new Lease No. 1154 with Rotor Ranch Properties, LLC for .51 Acres at 2120 Commerce Street in Aberdeen.

Current lease is held by Applied Technology. Their lease was set to expire in 2020, and Applied Technology has given notice. Mr. Barnes stated that Shannon Anderson made the connection with Applied Technology at an aviation conference. The lease is on a five-year term with two successive five-year options to renew at fair market rent. Insurance and performance bond will be in place before execution of agreement.

Motion to approve the Lease No. 1154 for Rotor Ranch Properties, LLC was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 3
Leonard Barnes, Deputy Executive Director, requested approval of new Rental Agreement with Pondersosa Properties NW, LLC for the fenced yard space at 105 S. Wooding Street to store new small equipment and implements during the upcoming season. The agreement would be on a month-to-month basis. Insurance and performance bond will be in place before execution of agreement.

Motion to approve the Rental Agreement No. 1155 for Pondersosa Properties NW, LLC was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 4
Mike Johnson, Contract & Project Manager, requested authorization to call for bids on Contract No. 1999, Terminal Maintenance Dredging. Maintenance dredging is required at port terminals to ensure proper depth for visiting ships.
Estimated volumes under the contract:
• Terminal 1 – 10,000 CY
• Terminal 2 – 40,000 CY
• Terminal 4 – 10,000 CY
Total – 60,000 CY

No dredging is planned at Terminal 3. Mr. Johnson stated that the contract would provide dredging services for the 2019 summer operations. Work would take place after July 15, 2019 through October 31, 2019. Funds would come from the Port’s 2019 operating budget.

Motion to authorize the call for bids on Contract No. 1999 for Terminal Maintenance Dredging 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 call for bids on Contract No. 2000, Westport Marina Maintenance Dredging. Project consists of removing sediment from specified areas outlined in the plans. Contract includes a requirement to provide water quality monitoring and conform to all environmental permits issued. Mr. Johnson explained that bids are to include methods for efficient disposal of both suitable and un-suitable material. Base bids would be for 20,000 cubic yards of un-suitable sediment and 140,000 cubic yards of suitable sediment. It has been requested that there be an additional -1 foot for over dredge of both material types.

Motion to authorize the call for bids on Contract No. 2000 for Westport Marina Maintenance Dredging was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Resolution 2974
Art Blauvelt, Legal Counsel, proposed authorization be given to the Executive Director to negotiate and reach an agreement with the City of Hoquiam regarding the lease of Hoquiam Tidelands. The resolution also grants authority to the Executive Director to seek the expansion of the Port Management Agreement with the Department of Natural Resources for unit five off of Terminal 3 and the Washington State Department of Transportation 520 pontoon site.

Motion to adopt Resolution No. 2974: Authorizing the Executive Director to negotiate and execute all documents necessary to lease Hoquiam Tidelands and to expand Port Management Agreement No. 20-080015 was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2973
Mike Johnson, Contract & Project Manager, stated that businesses or individuals may submit public records requests for bid documents prior to an official bid opening rather than obtaining a contract bid package from the Port’s official source of bid packages. Obtaining bid documents through a public records request rather than through the official source can affect the integrity of the bid document sets.

Art Blauvelt, Legal Counsel, continued by stating that instead of going through the official source for bid packets, in the past, some contractors make a public records request. This could lead to misinformation by not receiving supplements, corrections or questions by other potential contractors. Authorization to act on the Port’s behalf would be given to the Public Records Officer to deny a public records request for bid documents that have been released to an official source for bid packages until at least one week after the bid closing date. This procedural change to the Port’s Public Records Policy would be known as the Clerk’s Contract Bid Documents Rule.

Motion to adopt Resolution No. 2973: Add Clerk’s Rule regarding contract bid documents to the Port’s Public Records Policy 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:
• April 18 – Washington State Board of Pilotage Meeting
• April 22 – Oakville City Council Meeting
• April 23 – Greater Grays Harbor Inc. Business Forum Lunch
• April 24 – McCleary City Council Meeting
• May 15-17 – WPPA Spring Meeting in Spokane, WA

Alissa Shay, Manager of Business Development reported that Todd Bates, Forestry Program Instructor, notified her that the first batch of Forestry Bachelor Degree students will be completing their program this June. Curriculum changes that would give future-students more hands on experience are being considered.

Leonard Barnes, Deputy Executive Director, reported the loading of Pasha’s 500,000th auto will be commemorated on April 16 at 12:30 p.m. at Terminal 4.

Addressing a prior request from the Port Commission to rename East Terminal Way, Mr. Barnes recommended that the East Terminal Way sign remain and an additional sign “Jack Thompson Way” be added underneath it to honor late-Port Commissioner Jack Thompson.

Shannon Anderson, Business & Trade Development Assistant, stated that the Shorebird Festival would be taking place May 3 through May 5 with the annual dinner taking place on May 4.

Art Blauvelt, Legal Counsel, reported that after Executive Session, the Commissioners would be participating in a training session for their iPads with Chris Hunt, IT Manager.

There being no further business to come before the Commission, the Regular Meeting recessed at 11:20 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, after a 15-minute extension was announced, at 1:05 p.m. and the Regular Meeting adjourned at that time.