Port of Grays Harbor

Commission Meeting

July 9, 2019

The Port of Grays Harbor Commission Meeting for July 9, 2019 was called to order at 8:58 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
Mike Johnson - Contract & Project Manager
Randy Lewis - Director of Environmental & Engineering Services
Alissa Shay - Manager of Business Development
Molly Bold - Westport Business Manager
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Marine Terminals Manager
Shannon Anderson - Business & Trade Development Assistant
Leonard Barnes - Deputy Executive Director
Amy Carlson - Communications & Administrative Coordinator

VISITORS
Susan Conniry - City of Ocean Shores
Steve Schmitz - KPFF
Chuck Caldwell - Citizen
Arnie Martin - GHAS
Tim Horton - SCI
Linda Orgel - FOGH
John Douette - REG
Aaron Leatherman - REG

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 June 11, 2019 Regular Commission Meeting as recorded in the Minutes Book No. 21 on pages 30 through 38 inclusive.

VOUCHERS:
1. By motion made by Commissioner Papac and seconded by Commissioner Quigg, the Commission unanimously approved for payment those Payroll Vouchers issued June 20, 2019 and July 5, 2019, ACH/Wire Transfers No. 99901213 through and including No. 99901227, and General Disbursement Vouchers No. 100135 through and including No. 100346 for payment in the amount of $3,592,156.82.

REPORTS:
North Shore Levee Project Update
Leonard Barnes, Deputy Executive Director, introduced Steve Schmitz, KPFF Associate for a briefing of the overall project. Steve reported that there are currently restrictive building codes within the low-land residential areas of Aberdeen. This project aims to remove 3,200 homes the flood plain list which spans 5.6 miles.

In 2015, the city of Aberdeen saw its most recent flooding from eight inches of rain that fell within 24 hours. The majority of the flooding was at the base of the hills. Two million dollars leaves the community in flood insurance each year with only $900,000 in flood insurance claims being paid back in 2015. The goal is to keep that money in the community. The Alignment project starts at the Wishkah River, comes down to the Young Street Bridge and makes its way to Market Street and F Street to then join the rail alignment. The levee is not a major structure but it allows these areas an additional 2 feet in elevation.

The schedule for this project include:
• Hypotenuse Track Upgrade, Fall 2019
• Fry Creek Pump Station, Summer 2020
• General Pump Station Improvements, TBD
• Levee Construction, TB

The Fry Creek Pump Station is fully funded, however the other two pieces are not at this time. The Hypotenuse Track Upgrades will include a track upgrade to 115 pounds, replacement of 400 ties, switch upgrade to 115 pounds, switch installation and crossing upgrades. The benefits include permanent improvement, reduced costs and operation flexibility. The Fry Creek Pump Station will have a 380 cubic foot per second capacity, four 200 horse power pumps, a radial tide gate and a 16 foot wide culvert. Ten different pump stations will be either added or upgraded with a design to allow for additional capacity, include redundant pumps, and back-up power. The impacted Port properties would include Port Industrial Road. It is currently at 11.7 elevation, the proposed raised road would have a 13.2 elevation and be completed with new sidewalks.

Washington Tuna Classic, Mission Outdoors
Molly Bold, Westport Business Manager, reported the Washington Tuna Classic is a tournament has grown over the last decade both in size and in quality. Most significantly, it is directly in the boat basin with all activities happening in the Marina. Mission Outdoors serves the Veteran community and has transformed this event from a one day tournament all about Tuna into a week-long tournament that observes Veterans throughout the week. In addition, this year they made the Tuna Classic into a family event with a Veteran appreciation street fair on Saturday and Sunday including activities to engage the whole community. This year has roughly 60 teams that will be participating in the tournament itself and 99% of the Tuna that is harvested will go to local food banks though Northwest Harvest.

Summer Maintenance Dredging Update
Randy Lewis, Director of Environmental and Engineering Services, reported that Corp of Engineers hopper dredging, which was delayed and then cancelled and rescheduled several times throughout the spring season was completed in June. Post dredge surveys of the outer harbor indicated they were able to dredge all of the material needed for this year. The next round of hopper dredging is scheduled for next spring. After review of the annual condition surveys, the Corps has decided no maintenance dredging is required in the inner harbor channel this summer. They are planning to conduct maintenance dredging in the Cow Point and Turning Basin beginning in early December.

Westport Marina Terminal maintenance dredging phase one is scheduled to begin middle to the end of August and will last for three months. All unsuitable material will be pumped upland to the Firecracker Point disposal site by hydraulic dredge.

4th Grade Tours
Kayla Dunlap, Public Affairs Manager, reported that this was the ninth year for 4th grade tours with 16 schools, 36 classes, 884 students, teachers and chaperones participating. The partners for this year’s tours included Mrs. Betsy Seidel, Tour Coordinator, the Grays Harbor Community Foundation (Gladys Phillips Cultural Tours Program), Paneltech, AGP, Pasha, and REG.

The program entails an optional Port-based curriculum, Port overview presentation, a tour of the industrial properties and marine terminals, a map exercise, a quiz for a prize for each class, goodie bags and a teacher feedback survey. Teacher surveys are sent out the following week of their tour with 17 out of the 36 teachers participating this year. The majority of questions were scored with a four or five out of five rating and a variety of comments with the majority being positive.

Ms. Dunlap reported that Summer Public Tours for both the Port and Satsop have kicked off with one past and three upcoming.

Public Information Report
Kayla Dunlap, Public Affairs Manager, reported that the annual city council outreach is continuing with a busy August. Oakville will take place on July 22, Hoquiam on August 12, Aberdeen on August 14, Elma on August 19, Cosmopolis on August 21, and Ocean Shores on August 26. Scheduling for Westport, Grays Harbor county and PUD will begin in September.

Public Tours have kicked off with the assistance of the new Port bus which can accommodate 14 people at one time. Upcoming tours include July 10 at 3:00 p.m., July 24 at 5:30 p.m., August 1 at 3:00 p.m., and August 22 at 5:30 p.m.

Satsop Walking Tours still have three available dates left being July 25 at 5:30 p.m., August 23 at 3:00 p.m., and September 26 at 3:00 p.m.

Westport Marina will be offering two walking tours as a trial run this summer on August 15 and 29 at 3:30 p.m. They will last roughly 20 minutes starting at the marina office and finish at the centennial tower. The tours will include information on Port history, commercial and recreational fishing, history of the charter industry, seafood processing, and shipping channel.

Vessel Activity
Leonard Barnes reported for June 2019, the Port had calls from 6 deep-water vessels and 2 barges, which resulted in 186,225.171 MT of cargo being handled. Year-to-date, the Port has had 38 deep-water ships, 9 barges and handled 1,299,121 MT of cargo.

Public Comment
Arnie Martin, GHAS, stated the current railroads are operating off of 1905 bridge standards. Mr. Martin suggested that if heavier loads are expected to be coming through, the Port should hire a structural engineer to survey bridges that would be impacted.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Leonard Barnes, Deputy Executive Director, requested approval of Lease No. 1165 with Thompson Welding & Logging Supplies, Inc.

In 1983, Mack Trucks assigned their lease on Commerce Street to Thompson Welding & Logging Supplies, Inc. The lease expires August 31, 2020. Port staff has been negotiating with Mrs. Thompson for an extension to the current lease. However, it has been determined that a new lease would be in the best interest of the Port and Thompson Welding Supplies, Inc.

The lease will be for a term of 10 years, to commence on September 1, 2020. The use will continue to be for the sales, display and storage of welding gases, equipment & supplies and safety products. The lease is “as is, where is” and the lease requires insurance and performance bond clauses consistent with Port lease policy.

Motion to approve the Lease No. 1165 with Thompson Welding & Logging Supplies, Inc. 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 proceed with Contract No. 2009, West Park Lane Resurfacing – Construction Phase.

Road improvements are needed for West Park Lane at the Satsop Business Park. West Park Lane is the access road for the Xpress Natural Gas Facility, the Satsop Business Parks Main Water Filter Building and PGH Warehouses access road. Full pay will be for all costs including but not limited to furnishing and installing commercial Hot Mix Asphalt (HMA), Tack Coat, Joint Seals, Crack Sealing, Grading, Compaction, and Testing as outlined in the specification. Contractor will provide all labor, materials, and equipment necessary to complete the work as specified.

For the Base Bid the contractor will provide preparation and installation of approximately 280-ton of HMA. Additive Bid Alternate 1 will provide 25-ton of HMA for the access road to PGH Warehouses, and Additive Bid Alternate 2 will provide 45-ton of HMA for additional paving of West Park Lane and is access to the Port Water Filter Building.

Motion to proceed with Contract No. 2009, West Park Lane Resurfacing – Construction Phase was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Action Item No. 3
Molly Bold, Westport Business Manager, requested the agreement for termination of Lease Agreement No. 505 with Jon Englund of Englund Marine. The termination agreement provides for the early termination of the Englund Lease in exchange for Englund leaving the existing building and improvements on the leased premises after the termination

In 1985 Englund began leasing the property at the intersection of Wilson Ave and Nyhus Street, Westport, from the Port under Lease No. 505. The lease provided that Englund could exercise an early termination of the Lease every 5 years. Englund has recently constructed a new building for their marine supply business and are no longer in need of their building on Lease No. 505. Englund has approached the Port requesting early termination of the lease scheduled for August 1, 2020.

Port Staff recommended to the Executive Director that a Phase 1 Environmental Assessment be conducted and inspection of the building’s condition. The Phase 1 has revealed no contamination issues and the Port’s inspection has confirmed the structural integrity of the building. Under the terms of the 1985 Lease (paragraph 8), if improvements are not removed by the Tenant at the termination of the Lease, then the improvements become the property of the Port. The proposed agreement conforms to the terms of the Lease.

Motion to agree for termination of Lease Agreement No. 505 with Jon Englund of Englund Marine was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 4
Leonard Barnes, Deputy Executive Director, requested assignment and amendment of Lease Agreement No. 1152 with Eric and Kevin Nations to RCD Timber Inc.

In October 2018, the Commission approved a 10 year lease with 6 successive 5 year options to renew to the Nations for a sheet metal fabrication shop and office. The Nations purchased the building from former tenant, Tracey Lutton in December of 2018. Port staff has been negotiating with the Nations for a change in the occupancy of this property as they have entered into a Purchase and Sale Agreement with RCD Timber Inc. for the building.

RCD Timber Inc. is a contract logging company that was established in 2013 by owner Brian Dooghe. They have 11 log trucks, 7 shovels and employ over 10 employees, including 2 full-time, certified mechanics. The use will be amended to include the parking and maintenance of logging equipment and trucks. All other aspects of the lease will remain the same.

Motion for assignment and amendment of Lease Agreement No. 1152 with Eric and Kevin Nations to RCD Timber Inc. was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Resolution 2980
Gary Nelson, Executive Director, requested the addition of “Jack Thompson Way” to East Terminal Way.

Commissioner Jack Thompson served the citizens of Grays Harbor as the Port Commissioner for District #2 beginning in 1994 through to his untimely death on October 4, 2018. He served the citizens and ports of this state by his 24 years as a Washington Public Port Association (WPPA) Trustee and his service as WPPA President in 2007. Commissioner Thompson promoted major Port expansions including the 1999 purchase of Terminal 3, the expansion of the Satsop Business Park, the purchase of the former WSDOT Pontoon site and other property acquisitions during his 24 years as a port commissioner. He was an active supporter of Deeper Draft Phases 1 and 2, the installation of $20 million in new rail infrastructure, and the diversification of cargo which attracted AGP, REG, Contanda, Pasha, Willis and Ocean Companies to invest over $225 million in improvements on Port owned properties. It has been the practice of the Port to name streets in the Port area after Commissioners.

Motion to add “Jack Thompson Way” to East Terminal Way was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2981
Mike Johnson, Contract and Project Manager, requested authorization to accept completed Contract No. 1970, Ranney Well Interconnection Line.

On December 11, 2018, Contract No. 1970 was awarded to South Sound Contractors. This contract provided for construction of approximately 3000 lineal feet of 6-inch PVC water main from the existing 21-inch water main located in the BPA Right-of-Way to the existing potable water filtration plant located at the east end of West Park Lane at the Satsop Business Park. The contractor provided all labor, materials, and equipment needed to complete the work. The project is complete and has been accepted by Port Staff.

Motion to accept completed Contract No. 1970, Ranney Well Interconnection Line was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2982
Art Blauvelt, Legal Counsel, requested authorization to change the location of the regular September 2019 Port Commission Meeting to Westport.

Under Resolution No. 2422 of the Port Commission of the Port of Grays Harbor, the regularly scheduled monthly meetings of the Port Commission are generally held at the Port of Grays Harbor offices. It is the desire of the Port Commission to occasionally hold meetings at locations in Grays Harbor other than the Port offices. The Port desires to hold its September 10, 2019 regular meeting in McCausland Hall located at the Westport Maritime Museum, 2201 Westhaven Drive, Westport at 9:00 a.m.

Motion to authorize to change in location of the Regular September 2019 Port Commission Meeting to Westport was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Public Comment
None

NEW BUSINESS:
Gary Nelson, Executive Director, requested approval for travel to Aberdeen, South Dakota on July 16 and return on July 18 for AGP’s grand opening of their processing facility.

Motion to approve travel to Aberdeen, South Dakota on July 16 and return on July 18 for AGP’s grand opening of their processing facility was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

Mike Johnson, Contract and Project Manager, requested authorization to proceed with Contract No. 2007, Pilot Boat Annual Maintenance 2019.

Annual maintenance to the Pilot Boat “Chehalis” is planned for August of this year. Requests for pricing from boat yards for the repairs this year from the Shipyard LLC, Hoquiam, WA, South Bend Boat LLC, South Bend WA, and WCT Marine, Inc., Astoria, OR, to bid on the work. A marine survey is planned to identify and outline this year’s work. Tentative work outlined for this year is as follows:

• Haul-out, pressure wash and clean hull, prime and paint entire hull below waterline, replace zincs, inspect wheel, rubber and repack the shaft stuffing box
• Prepare, prime, and paint 60 square feet of hull above the waterline
• Repair rust around windows, portholes, wheelhouse roof and gutter, and exhaust stack
• Prepare, prime, and paint around windows, portholes, wheelhouse roof and gutter, and exhaust stack – 400 square feet
• Repair handrails where needed – 30 lineal feet
• Clean, inspect hatch cover (3 total)

Motion to authorize the Executive Director to proceed with Port of Grays Harbor Contract No. 2007, Pilot Boat Annual Maintenance 2019 was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Gary Nelson, Executive Director, listed upcoming calendar items:
• July 9 – Jack Thomson Way unveiling and dedication at 2:00 p.m.
• July 22-24 – WPPA Commissioners Seminar

Leonard Barnes, Deputy Executive Director, added upcoming calendar items:
• August 13 – Shipping Club Golf Tournament
• September 11 – PGH Tenant Appreciation BBQ 11:30 a.m.-1:00 p.m.

The Executive Session ended at 12:18 p.m. and the Regular Meeting adjourned at that time.