Port of Grays Harbor

Commission Meeting Agenda

August 13, 2019

The Port of Grays Harbor Commission Meeting for August 13, 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
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
Shannon Anderson - Business & Trade Development Assistant
Leonard Barnes - Deputy Executive Director
Amy Carlson - Communications & Administrative Coordinator

VISITORS
Midge Hunnicutt - Westport Art Festival
Arnie Martin - GHAS
Silvia Dickerson - Our Aberdeen
Susan Conniry - OS Council
Cindy Taylor - Rainier Connect
Linda Orgel - FOGH
Tanya Lana Westport Art Festival

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 July 9, 2019 Regular Commission Meeting as recorded in the Minutes Book No. 21 on pages 39 through 48 inclusive.

VOUCHERS:
1. By motion made by Commissioner Quigg and seconded by Commissioner Papac, the Commission unanimously approved for payment those Payroll Vouchers issued July 19, 2019 and August 5, 2019, ACH/Wire Transfers No. 99901228 through and including No. 99901237, and General Disbursement Vouchers No. 100347 through and including No. 100575 for payment in the amount of $3,192,804.26.

REPORTS:
Westport Art Festival
Midge Hunnicutt, 2019 Event Coordinator, reported that this year’s Westport Art Festival will be the 22nd year and take place on August 17 and 18. This year will feature 66 artists, nine food vendors, live music both days, a beer garden and a children’s play area.

2020 Budget Schedule
Mike Folkers, Director of Finance & Admin, presented the timeline for the 2020 Budget that is scheduled to be adopted on November 12. A preliminary budget will be presented to the Commissioners before the October Commission Meeting with results from the October 1 Budget Workshop.

Satsop Business Park 2019 Training
Alissa Shay, Business Development Manager, reported that four military trainings have already taken place so far in 2019 with two more scheduled for October through November. Ms. Shay presented photos of the 2nd Ranger Battalion K9 Unit trainings that were held in the Reactor Building. She explained that the main use of the facilities for this particular exercise was to train and improve the dogs’ abilities to clear structures like Satsop has utilizing the K9 for both apprehension and explosive detection purposes. The Reactor Building provides a real life scenario environment being a concrete structure.

Trainings held at Satsop Business Park include subterranean robot reconnaissance, explosive ordinance disposal, and stuck round training. The diverse terrain brings opportunities that many of the units and teams have not been able to experience at traditional military installation sites. Units have expressed their gratitude towards having the business park as both an inside and outside training option that can accommodate their tight timelines.

Westport Marina Dredging Update
Randy Lewis, Director of Environmental & Engineering Services, reported that on June 11, Commissioners awarded Contract No. 2003 for Phase I of the Marina Dredging Project to Bergerson Construction and Contract No. 2004 for Phase II to Pacific Pile and Marine, the low bidders for the two projects. Contract No. 2004 includes language indicating it is to be completed after Phase I.

Bergerson Construction contacted the Port immediately after award and has been aggressively pursuing obtaining the final approvals to be ready to begin dredging in early September. They have received all of the approvals necessary for the construction of the upland disposal site and began work on July 24. Their projected completion date is December 26, which includes an estimated number of down days due to weather, equipment issues, and stoppages due to debris. It is anticipated they will finish in late November. When provided the notice of award for Contract No. 2004, Pacific Pile & Marine indicated that they wanted to begin dredging in September, but didn’t take further actions. They recently contacted Mike Johnson, Contract & Project Manager, and indicated they wanted to begin early September and complete dredging this year. A notice to proceed is currently being developed and their proposed schedule would complete dredging in January.

Port staff met with a representative from Pacific Pile and Marine on August 1 to understand their plans and make them aware of the challenges of proceeding this fall. A follow up meeting was held on August 6 with representatives from both dredging contractors where it became clear that both contractors had been in discussion and both were comfortable with proceeding concurrently. Both dredgers plan to begin work at opposite ends of the marina, with Bergerson starting with DMMU 12 near the Ocean Cold dock and running their pipeline to the upland disposal site on Firecracker Point. Pacific Pile and Marine will begin at Float 21 in the far west and run their pipeline out to the Point Chehalis Disposal Site. There would not be any conflicts in locations or pipelines until the two crossed somewhere in the middle of the marina. In order to avoid this issue, Bergerson Construction has proposed having Pacific Pile and Marine subcontract to complete the areas of suitable material included in Contract No. 2003. This material would go to the Point Chehalis Site along with the rest of the suitable material. This would not create any permitting nor contractual problems.

A third meeting was held with representatives from Pacific Pile and Marine, Molly Bold, Marina Business Manager, and representatives from the seafood processors to discuss the schedule and process since dredging would be occurring during both the commercial tuna and crab seasons. All were pleased with the information and voiced support for completing the second phase this fall versus waiting until next year.

This plan has been approved by the Executive Director and Staff. They are working on a joint dredge plan and schedule to make it clear to Staff and marina users where activity will be taking place and approximately when. Weekly construction meetings and work plan updates will be provided to help the Marina Staff in communicating with users to reduce conflicts and impacts as much as possible. Staff is working with the Port’s attorney to complete the necessary amendments and agreements to formalize this plan. Pacific Pile and Marine has been provided a list of approvals they will be required to complete before they can begin any in-water activities and have begun working on them.

Public Information Report
Kayla Dunlap, Public Affairs Manager, reported that BHP submitted a new SEPA checklist along with land use and shoreline permit applications to the City of Hoquiam for a proposed Potash Storage and Export facility at Terminal 3 in West Hoquiam. The City and its consultant anticipate issuing a threshold determination in the next month or so, with a shoreline permit hearing planned for late October.

The annual city council outreach is continuing with 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 the Grays Harbor PUD will begin in September.

The Public has two opportunities left to participate in the Satsop Business Park walking tours for 2019: August 23rd and September 26th. Westport Marina will offer three walking tours this year starting on August 15th with additional dates of August 27th and 29th.

The Iowa Soybean Board will be visiting for a tour on September 4th.

Vessel Activity
Leonard Barnes reported for July 2019 the Port had calls from 7 deep-water vessels and 2 barges, which resulted in 206,902.667 MT of cargo being handled. Year-to-date, the Port has had 45 deep-water ships, 11 barges and handled 1,506,024 MT of cargo.

PUBLIC COMMENT
Silvia Dickerson, Our Aberdeen, reminded the Commissioners and Port Staff that the mural dedication in honor of Jack Thompson will be happening on August 20 at 11:00 a.m. in the parking lot of Billy’s Bar & Grill.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Johnson, Contract and Project Manager, requested the Ratification of the Executive Director’s approval of Change Orders 1 through 4 for Contract No. 1967, Drainage Improvements at Bowerman Field Airport No. 3-53-0032-13.

Additional work is required to provide a complete project. This work was not part of the original scope of work and change orders have been requested by the contractor to cover additional costs.

Change Order No. 1 is to slightly modify the grading plan to avoid changing the grading around FAA-owned equipment. The change is based on comments received from the FAA’s ATO office that has responsibility for the FAA-owned equipment. The modification changes still provide drainage improvements at the facility but eliminate the need to adjust localizer, transformer, and other equipment.

Change Order No. 2 changes previous sign size for signs P1-P6. The sign schedule in the bid documents showed a size for these signs that did not match the signs currently on site. Signs were changed to match the existing signs. This will also add a sign on the back side of sign P7. The reverse side of an ILS sign (P7) should be the ILS critical area/POFZ boundary sign. This was not included in the sign schedule and has been updated to include sign P7a.

Change Order No. 3 modifies the grading plan, including catch basin rim elevations and associated inverts, to address high groundwater at the site. It removes additional accumulated unclassified excavation in front of two existing outfall pipes and reuses one manhole in place of a new manhole. Previous geotechnical borings indicated that groundwater was located three to five feet below grade. When the Contractor began regrading on site, they encountered groundwater approximately one and a half to two feet below grade. In order to reduce the potential for future groundwater ponding on site, a revised grading plan was developed to raise the catch basin and swale elevations and associated grading. Grades were adjusted across the site in order to reduce the requirement to import fill to the site. Standby time and additional administration costs were incurred while the grading was being revised.

Change Order No. 4 modifies City waterline to proper depth at base of swale. Information on an existing City water main located near the terminal building and running through a portion of the area to be graded was obtained from the City and included in the plans. While excavating a drainage swale, it was determined the main was shallower than reported and would be exposed by the construction of the swale. The solution approved by the City will require moving two existing valve boxes and the installation of a new section of main with 45-degree fittings to increase the depth through the width of the swale area.

While cleaning debris from the existing outfall pipes the contractor discovered a clog in one near the middle of the project that could not be removed with the equipment on hand. The clog is likely made of drift wood which was found packed into the other pipes and is located approximately 70 feet from the closest manhole. In Change Order No. 5, the contractor can attempt to bring in heavier equipment to attempt to remove it by rooting it out, however due to the distance from the closest opening this may or may not be successful. Due to the age of the pipe, the best solution will be to dig it up at the location of the clog and replace it. The contractor hasn’t been able to determine the full distance of the clog and so a range has been assigned to this change order based on whether it will require one or two pieces of pipe. The work requires dewatering the area because the pipe is located below the level of groundwater. Trash racks will be installed over all of the outfall pipes to prevent this from happening again.

WSDOT Aviation and the FAA have seen the information on all of the change orders. The documentation for change orders 1, 2, and 3 is completed. They are reviewing Change Order No. 4 and documentation is being developed for the potential Change Order No. 5. The Executive Director’s approval of these last two is contingent upon FAA approval. The FAA has a maximum change order limit of 15% which we haven’t reached so their approval is based on agreeing with the need and costs.

Motion to ratify the Executive Director’s approval of Change Order Nos. 1 through 4 for Contract No. 1967, Drainage Improvements at Bowerman Field Airport No. 3-53-0032-13 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 authorization to enter into a new lease agreement with USCOC of Washington-4, Inc. for the property located at 2920 Port Industrial Road, Hoquiam.

USCOC of Washington-4 Inc. is an entity of U.S. Cellular and they have requested to lease the property in Hoquiam to locate a 50-foot communication tower antenna and supporting infrastructure to better serve their customers in the area.
The lease has a five-year term, with five successive five-year options to renew and commences upon execution of the lease document.

Motion to authorize the Executive Director to enter into Lease No. 1157 with USCOC of Washington-4, Inc. was made by Commissioner Quigg and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 3
Alissa Shay, Manager of Business Development, requested authorization for the Executive Director to negotiate and enter into an easement agreement with the Grays Harbor PUD for installation of a fiber optic cable on Port property.

The Grays Harbor PUD has requested a permanent easement across Port property located at the Satsop Business Park. The purpose of the easement is for installation of fiber optic cable to serve residents in the area with internet access. The property in question is located to the West side of Keys Road, on the parcel that the Grays Harbor PDA previously purchased from Weyerhaeuser. The easement line would run parallel with our property line on the western edge. The easement would not interfere with any of the Port’s existing infrastructure.

The Port would retain the right to require the Grays Harbor PUD to relocate their infrastructure at their expense should the Port ever have a business or operation’s need to utilize that area. However, the proposed easement is located in an area that is unlikely to interfere with business or operations.

Motion to authorize the Executive Director to negotiate and execute an easement agreement with the Grays Harbor PUD for property located at the Satsop Business Park was made by Commissioner Papac and seconded by Commissioner Quigg. Motion passed with a vote of 3-0.

WORKSHOP
2nd Quarter Port Financial Review
Mike Folkers, Director of Finance and Administration, reported on the Port’s 2nd Quarter Financial Review. Mr. Folkers’s quarterly financial review provides staff and Commissioners the opportunity to re-evaluate business trends using the most current customer forecasts and market analysis, and to quickly respond to changing market conditions impacting customer and Port operations. The Port proactively updates forecasts based on this evaluation to ensure business and financial objectives are achieved. Mr. Folkers reported that the Port’s 2019 financial outlook is positive with growth from last year.

PUBLIC COMMENT
None

NEW BUSINESS:
Gary Nelson, Executive Director, listed upcoming calendar items:
• WA Pilotage Meeting
• Alissa Shay & Gary Nelson round table
• August 28 - WPPA Legislative Committee
• AGP Customer Tour
• September 5 - WA Fish & Wildlife
• September 10 - Commission Meeting in Westport.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:15 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 75 minutes.

The Executive Session ended at 11:30 p.m. and the Regular Meeting adjourned at that time.