Port of Grays Harbor

Commission Meeting

June 11, 2019

The Port of Grays Harbor Commission Meeting for June 11, 2019 was called to order at 8:57 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
Art 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
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
Ross Read - Director of Operations, Satsop Business Park
Chris Hunt - IT Manager

VISITORS
Bob Esposito - Citizen
Dan Hammock - Daily World
Shelli Hopsecger - CCAI
Arnie Martin - GHAS
Dave Ward - GH PUD
Erik Larson - Mayor of Aberdeen
Grant Jones - GGHI
James Thompson - WPPA

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 May 14, 2019 Regular Commission Meeting as recorded in the Minutes Book No. 21 on pages 19 through 29 inclusive.

VOUCHERS:
1. By motion made by Commissioner Papac and seconded by Commissioner Quigg, the Commission unanimously approved for payment those Payroll Vouchers issued May 20, 2019 and June 5, 2019, ACH/Wire Transfers No. 99901201 through and including No. 99901212, and General Disbursement Vouchers No. 99926 through and including No. 100134 for payment in the amount of $2,493,265.60.

WORKSHOP:
Satsop Business Park Strategy Workshop
Shelli Hopsecger, strategic planning consultant with CCAI, led a discussion with Commissioners and Staff focusing on how today’s investments, support tomorrow’s success. Ms. Hopsecger reviewed the role Satsop Business Park plays in the Port of Grays Harbor’s ability to generate positive economic benefits of good paying jobs, private investment, and a stable economy for the community.

Ms. Hopsecger reported on the Think BIG campaign and the three mission-driven outcomes, jobs, investment, and community. During the 2015 strategic planning workshop, the Port Commissioners and staff defined Satsop Business Park’s unique role toward achieving economic development in the Grays Harbor community and the surrounding region.

The priorities of the Satsop Business Park are developing partnerships that will result in increased private investment within the Grays Harbor community, job retention, creation in diverse industries, and utilization of public infrastructure.

Dave Ward, General Manager of the Grays Harbor Public Utility District (GHPUD), shared how continued development and build out of the Satsop Business Park is an important component of the GHPUD’s strategic development plans. By adding industrial and commercial electricity customers to their service base, they will be able to provide better rates to their residential users which comprise a large percentage of their existing customers. Currently, the power capacity remaining at Satsop Business Park could accommodate one major power user based upon inquiries. The GHPUD is working cooperatively with the Port on BPA power capacity study in order to increase the power capacity of Satsop Business Park.

Grant Jones, Director of Business Development for Greater Grays Harbor, shared with the Commissioners that Satsop Business Park is often the only place in the County that can meet the specifications of many of the economic development opportunities through the Washington State Department of Commerce.

Commissioners and staff discussed the need to plan for and provide the infrastructure needed for the diverse companies that consider Satsop Business Park. Short-term and long-term objectives for the development of the Park were outlined.

REPORTS:
Westport Marina Activities Update
Molly Bold, Westport Business Manager, reported that the Port has made significant investments in the Marina District and all projects are still underway. All activity stems from the fishing their moorage holders seek, both recreational and commercial. Bottom and shell fishing continue to draw visitors to the marina while all await the start of salmon season on June 22. May halibut openers served to be the busiest days in the marina with only one slow weekend due to inclement weather. In return, Washington Department of Fish and Wildlife (WDFW) allowed one more day of fishing on June 20. The Westport Charter Boat Association will continue to offer their derby.

Pacific whiting is the source for the marina’s large annual landings and will continue to be in 2019. Local processors have reported the Pacific whiting harvest is on pace with last year’s catch. It was reported last year that the rock fish rebuild was reaping benefits to the local economy. Marina staff have seen a number of mid water trawlers for the first time in decades. Tuna has not yet arrived, however tuna season begins late July with Westport handling the majority of the North Pacific Albacore landed in the US. With the Oregon shrimp fleet on strike for the first six weeks of the season, all product was landed in Westport. The majority of out of town crabbers have departed after seeing a decent Spring bite which also benefited the local fleet with crab selling for $8 a pound. Troller prices, on the other hand, are down from last year with fishing being fairly slow.

The marina high-season now spreads over six months from April to the end of September with a wide variety of events to attend. Working closely with the city and the chamber, the marina district facilities serve as the platform for all of this activity. The infrastructure and atmosphere that are provided are vital to the festivals, business, and tourism & development efforts. New to the marina this year, the Port is providing walking tours that will be similar to Satsop Business Park and the Marine Terminals.

BUILD Grant Application – Aberdeen US 12 Highway-Rail Separation
Kayla Dunlap, Public Affairs Manager, reported that the discretionary grant formerly known as the Transportation Investment Generating Economic Recovery (TIGER), has now been renamed the Better Utilizing Investments to Leverage Development Transportation Discretionary Grants Program (BUILD). Since 2009, the program has awarded nearly $2.4 billion dollars in Federal funding to 233 rural projects across the nation, leveraging an estimated $3.9 billion in non-BUILD/TIGER funding. There are multiple consultants that are engaged in this project. Shelli Hopsecger will be working on the project narrative, Jeannie Beckett, benefit-cost analysis and David Evans and Associates Inc. is further developing the preliminary engineering for the City of Aberdeen.

For this round of grant applications, there are $900 million dollars available. It is multimodal and merit-based with modal and geographic equity requirements. The lack of a match requirement and is a 50% funding split between urban and rural areas makes this a strategic time for Aberdeen to submit their application. There is a $1 million dollar minimum, $25 million dollar max per project and $90 million dollar max per state.
The United State Department of Transportation (USDOT) selection criteria encompasses safety, economic competitiveness, quality of life, state of good repair, innovation and partnerships with a broad range of stakeholders.

A public outreach study took place in the fall and winter of 2014, with a preferred alternative being unveiled in December of 2014. The preferred alternative involves a round-about and an overpass into the commercial core. Ms. Dunlap introduced Mr. Erik Larson, Mayor of Aberdeen, who stated that since the unveiling, there have been changes in commercial property ownership and development in the area but the area is directly impacted by this project. Ms. Dunlap continued by stating that many factors make this project a good fit for the BUILD grant.

Public Information Report
Kayla Dunlap, Public Affairs Manager, reported that the annual city council outreach is continuing with a busy July and August. Oakville will take place on July 22, Hoquiam on August 12, Aberdeen on August 14, Cosmopolis on August 21, Ocean Shores on August 26 and Elma is to still be determined. Scheduling for the county and PUD will begin in September.

Fourth-grade tours will be completed come June 13. Surveys have been sent to all participating teachers and once collected results will be shared. Summer public tour dates were announced late May with a few already being full. Tour dates are June 13, July 2, July 10, July 24, August 21 and August 22.

Trade team tours begin with both a South East Asia group and Korean group coming June 14 and will continue on June 20 with a team from Peru and Ecuador.

Vessel Activity
Leonard Barnes reported for May 2019, the Port had calls from 7 deep-water vessels and 3 barges, which resulted in 239, 057.716 MT of cargo being handled. Year-to-date, the Port has had 32 ships, 7 barges and handled 1,112,996 MT of cargo.

Public Comment
Bob Esposito, Hoquiam citizen, suggested looking into bicycle trails at Satsop Business Park for employees and tourism.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Alissa Shay, Manager of Business Development, requested approval of Fifth Amendment to Lease No. 2012-L140A5 with Quinault Nation.

The Quinault Indian Nation first joined the Satsop Business Park colocation in October of 2012 with a ½ cabinet and an antenna mounted on the eastern cooling tower. In 2017, they added a fiber optic connection to the PUD and additional fibers to the cooling tower and in 2018 they grew to a full cabinet. Their current lease expired on May 31, 2019. The Fifth Amendment to Lease No. 2012-L140A5 would extend the lease with a three-year term beginning June 2019, reduce fiber count between colocation building and eastern cooling tower from ten strands to six strands and update contact information.

Motion to approve the Lease No. 2012-L140A5 with the Quinault Nation was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 2
Mike Johnson, Contract and Project Manager, requested authorization to award Contract No. 2003, Westport Marina Maintenance Dredging Project Phase 1.

Maintenance dredging is a necessity to keep the marina at the necessary depth for users. Under Contract No. 2003, pricing was requested for 50,000 cubic yards (CY) of sediment in the base bid and 17,000 CY of material in the additive bid alternate 1 to be removed from specified areas of the marina, all of which will go to the upland disposal site. On May 14, 2019 the Port Commission approved a call for bids for this project. On June 4, bids were opened with three being received. Bids have been reviewed with the lowest bidder being Bergerson Construction Inc.

Motion to award the base bid and depending on the schedule and budget the additive bid alternate 1 for Contract No. 2003, Westport Marina Maintenance Dredging Project Phase 1 to Bergerson Construction Inc. was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 3
Mike Johnson, Contract and Project Manager, requested authorization to award Contract No. 2004, Westport Marina Maintenance Dredging Project Phase 2.

Maintenance dredging is a necessity to keep the marina at the necessary depth for users. Under Contract No. 2004, pricing was requested for 110,000 cubic yards (CY) of sediment in the base bid and 43,000 CY of material in the additive bid alternate 1 to be removed from specified areas of the marina, all of which will go to the in-water disposal site. On May 14, 2019 the Port Commission approved a call for bids for this project. On June 4, bids were opened with three being received. Bids have been reviewed with the lowest bidder being Pacific Pile and Marine LLC.

Motion to award the base bid and depending on the schedule and budget the additive bid alternate 1 for Contract No. 2004, Westport Marina Maintenance Dredging Project Phase 2 to Pacific Pile and Marine LLC was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Resolution 2977
Randy Lewis, Environmental and Engineering Services Director, requested authorization to adopt the Port of Grays Harbor 2020-2025 Transportation Improvement Program.

On a yearly basis, the Port is required to update its six-year Transportation Improvement Program (TIP). All projects involving federal funding must be on this list and most state transportation funding agencies require that projects be on the list to be eligible for their programs. The Port has four roads that have been classified by the State; Ingram Street, Maple Street, 1st Street, and Port Industrial Road.

Staff is recommending the following changes over last year’s plan.
• 28th Street Boat Launch Project was completed last year and has been removed
• The Yearout Drive Paving Project is currently being completed and has been removed.
• The 1st Street, Maple Street, and Ingram Street project that were previously separate projects have been combined into a single Port Paving Project which has been approved for Surface Transportation Program funding by Grays Harbor Council of Governments.
• Staff has gone through the list of projects and updated the schedule to coincide with the Port’s internal condition assessments and financial projections. No new projects are proposed to be added to the plan.

Motion to adopt Resolution No. 2977: Adoption of Port of Grays Harbor Six-Year Transportation Improvement Program 2020-2025 was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2978
Art Blauvelt, Legal Counsel, requested authorization to support the application of the City of Aberdeen for a grant under the Better Utilizing Investments to Leverage Development, or BUILD Grant Program, for the Aberdeen US 12 Highway Rail Separation Project, formerly the East Aberdeen Mobility Project, and authorizing the Executive Director to provide staff and consulting assistance for the grant application.

Motion to adopt Resolution No. 2978: A Resolution Supporting the application of the City of Aberdeen for a grant under the Better Utilizing Investments to Leverage Development, or BUILD Grant Program, for the Aberdeen US 12 Highway Rail Separation Project, formerly the East Aberdeen Mobility Project, and authorizing the Executive Director to provide staff and consulting assistance for the grant application was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2979
Art Blauvelt, Legal Counsel, requested authorization to execute the options that have been negotiated with BHP Billiton Canada, Inc. (BBCI), City of Hoquiam, Adams Street Hoquiam, LLC and Emerson Street Hoquiam, LLC for the Port’s Terminal 3 property and surrounding property for use as a potash export facility by BBCI.

The proposed resolution recites the history and reasons for this request. The resolution will authorize the Executive Director to sign the options as follows:
• An option to lease between the Port and BBCI that includes subleases of property owned by the City of Hoquiam, Adams and Emerson, LLC.
• An option to lease between the Port and City of Hoquiam.
• An option to lease between the Port and Adams and Emerson, LLC.

All options last until December 31, 2020.

Motion to adopt Resolution No. 2979: A Resolution of the Port Commission of the Port of Grays Harbor authorizing the Executive Director to sign options for leases relating to BBCI Dry Bulk Export Facility at Terminal No. Three 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 reported Overstock will be renewing their lease. Mr. Nelson also listed several upcoming calendar items:
• June 12 – WADOT Public Meeting (Heron Street Bridge)
• June 20 – Pilotage Meeting in Seattle

The Executive Session ended at 11:34 p.m. and the Regular Meeting adjourned at that time.