Port of Grays Harbor

Commission Meeting

August 14, 2018

The Port of Grays Harbor Commission Meeting for August 14, 2018 was called to order at 9:00 a.m.

Alissa Shay, Manager of Business Development, led the meeting in the Pledge of Allegiance.

Resolution 2949
Art Blauvelt, General Counsel, presented for Commission consideration, Resolution No. 2953 Appointing Phil Papac as Port Commissioner from District 1.

Motion to adopt Resolution No. 2953: A Resolution to Appoint Phil Papac as Port Commissioner from District 1 was made by Commissioner Thompson and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0. Resolution adopted.

Notary Public Art Blauvelt administered the Oath of Office to Commissioner-Elect Phil Papac.

REORGANIZATION OF BOARD
2018 Board Reorganization/2018 Commission Appointments

It was moved by Commissioner Thompson and seconded by Commissioner Papac that the 2018 Board be as follows:

President - Jack Thompson
Vice President - Stan Pinnick
Secretary - Phil Papac

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Phil Papac - Commissioner
Stan Pinnick - Commissioner
Jack Thompson - 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 and Project Manager
Randy Lewis - Director of Environmental and Engineering Services
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Nathan Hoover - Project Coordinator
James Messer - Business & Operations Assistant
Ross Reed - Director of Operations
Keya Bernhardt - Communications & Administrative Coordinator
Lisa Benn - Accounting Manager

VISITORS
Tim Horton - SCI
Arnie Martin - GHAS
Linda Orgel - CCH
Todd Bates - Forest Resources Management
Shelli Hopsecger - CCAI

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes
of July 10, 2018 Special Commission Meeting as recorded in the Minutes Book No. 20 on pages 228 through 235 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Papac, the Commission unanimously approved for payment those Payroll Vouchers issued July 20, 2018 and August 4, 2018, ACH/Wire Transfers No. 99901057 through and including No. 99901069, and General Disbursement Vouchers No. 97529 through and including No. 97727 for payment in the amount of $3,616,595.97

REPORTS:
Forestry Certification Program
Alissa Shay introduced Todd Bates, Forest Resources Manager from Grays Harbor College. Mr. Bates presented on the Forestry Certification Program. The certification system is an environmental movement concerned with tropical deforestation and to help create a consumer movement to verify sustainability. Mr. Bates described three regionally accepted programs in our area including Forest Stewardship Council, Sustainable Forest Initiative, and American Tree Farm System.

Update on Admin. Building Roof Damage, Satsop Business Park
Alissa Shay reported on the damage to the administration building roof damage at Satsop Business Park. Mrs. Shay reported that on July 9th and 10th the UK Mab 6 Squadron utilized our facilities for military training exercises, which included aviation training. During training that occurred overnight on July 10th, a helicopter flew over the Admin. Building during the training exercise, causing significant damage to a 10,000 square foot section of roof. The Admin. Building is 40,750 square feet in total.

The Garland Company inspected the damage and gave a report describing the damage and estimating the repairs.

Ms. Shay reported that at this time the repairs are estimated to cost at least $200,000 to $225,000 to replace the missing section of roof depending upon the extent of the damage. The cost could go up if during replacement the contractor finds that the damage is more extensive.

Ms. Shay reported that the Port will be responsible to pay for asbestos testing and abatement, in addition to roof repairs. The Port will submit a claim for damages to the United States Government requesting reimbursement in full.

2019 Budget Schedule
Mike Folkers reported on the 2019 budget schedule. Mr. Folkers provided a timeline with details on the Port’s 2019 budget schedule. The budget schedule provides for a workshop on October 4, 2018, and for a change for the October 9, 2018 regularly scheduled meeting to be moved to October 16, 2018 to accommodate staff and Commissioners attending the AAPA Annual Convention.

Public Information Report
Kayla Dunlap reported that the summer public tours wrapped up last week. She thanked Channel Point Village for partnering with the Port and providing transportation for the visitors. The Port will be working with Channel Point in the future by presenting at their facility and then taking residents on a tour of the Port.
The scheduled annual outreach includes:
• Aug 27 – Ocean Shores
• September 20 – Westport
• AGP September 13 – Philippines group
• AGP October 8 – Philippines group

Vessel Activity
Leonard Barnes reported for July 2018 the Port had calls from 10 deep-water vessels and 1 barge, which resulted in 220,211 MT of cargo being handled. Year-to-date, the Port has handled 65 ships, 10 barges and 1.7 million MT of cargo.

Public Comment:
Linda Orgel, St. 105, Aberdeen, WA, commented on the Port choosing Forest Stewardship Council instead of America for the Forestry Certificate Program.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Johnson requested authorization for the Executive Director to award the Base Bid for Contract No. 1949, Terminal Maintenance Dredging, to American Construction Company, Inc., in the amount of $497,000.00 and if the schedule allows authorization to Award the Additive Bid Alternate in the amount of $180,500.00 (WSST is not included in these amounts).

Motion to authorize the Executive Director to award the Base Bid for Contract No. 1949, Terminal Maintenance Dredging, to American Construction Company, Inc., in the amount of $497,000.00 and if the schedule allows authorization to Award the Additive Bid Alternate in the amount of $180,500.00 (WSST is not included in these amounts) was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 2
Mike Johnson requested authorization for the Executive Director to accept bids on Contract No. 1967, Drainage Improvements at Bowerman Field Airport AIP No. 3-53-0032-13.

Motion to authorize the Executive Director to accept bids on Contract No. 1967, Drainage Improvements at Bowerman Field Airport AIP No. 3-53-0032-13, was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 3
Alissa Shay provided background on the Ranney Well Interconnection project. In 2017 we completed a water system planning study that resulted in a Water System Capital Improvement Plan. The goal of the study was to address ongoing erosion at the Keys Road Well on the Satsop River, and develop options to assure the protection of future water supply for the Satsop Business Park. The planning process resulted in a prioritized list of projects.

The number 1 priority project was identified as the Ranney Well Interconnection Project. The purpose of the project is to connect the Ranney Well water system on the Chehalis River to our chlorination facility located at the end of West Park Lane.

This connection will be used as a backup system should the Keys Rd. Well become inoperable. We plan to continue utilizing water from the Keys Rd. Well until we determine that it is no longer feasible. Construction of the proposed water main will provide a secondary potable water source for the Satsop Business Park.

Mike Johnson requested authorization for the Executive Director to "Call for Bids" on Contract No. 1970, Ranney Well Interconnection Line.

Motion to authorize the Executive Director to "Call for Bids" on Contract No. 1970, Ranney Well Interconnection Line, was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 4
Mike Johnson requested authorization for the Executive Director to proceed on Contract No. 1971, West Park Lane Timber Sale.

Motion to authorize the Executive Director to proceed with Contract No. 1971, West Park Lane Timber Sale, was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 5
Mike Johnson requested authorization for the Executive Director to call for bids on Contract no. 1966, Terminals 3 and 4 Fender System Repair.

Motion to authorize the Executive Director to call for bids on Contract No. 1966 Terminals 3 and 4 Fender System Repair, was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 6
Alissa Shay requested authorization for the Executive Director to purchase playground equipment from Northwest Playground Equipment Inc.

Motion to authorize the Executive Director to purchase playground equipment from Northwest Playground Equipment Inc. was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 3-0.

Action Item No. 7
Alissa Shay requested authorization for the Executive Director to enter into Lease 2018-L444 with Atlas Core, LLC.

Motion to authorize the Executive Director to enter into Lease 2018-L444 with Atlas Core, LLC. was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution 2952
Mike Folkers presented for Commission consideration, Resolution No. 2952, Amendment of Grays Harbor Pilotage District Tariff.

Motion to adopt Resolution No. 2952: Resolution Of The Port Commission Of The Port Of Grays Harbor Recommending To The Washington State Board Of Pilotage Commissioners An Amendment Of The Tariffs And Pilotage Rates For The Grays Harbor Pilotage District was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Resolution 2954
Art Blauvelt, General Counsel, presented for Commission consideration, Resolution No. 2954 Ratifying the Actions of and Authorizing the Executive Director to Purchase the WSDOT SR520 Site.

Motion to adopt Resolution No. 2954: A Resolution Of The Port Of Grays Harbor Commissioners Ratifying The Actions Of The Executive Director And Authorizing The Executive Director To Execute All Documents Necessary To Purchase The WSDOT SR 520 Site was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 3-0. Resolution adopted.

Visitors/Public Comment:
None.

NEW BUSINESS:

Mr. Nelson noted future meetings and events:
• Aug 14 – Monte Chamber of Commerce
• Aug 16 – Pilotage Commission
• Aug 27 – Westport City Council
• September 11 – Commission Meeting in Westport

RECESS: 10:33

RECONVENED: 10:43

WORKSHOPS:
2nd Quarter Port Financial Review
Mike Folkers reported on changes to budget projections based on new information. Following a strong 4th quarter (2017) and first half for 2018, the Port’s financial outlook is positive and the following updates will be added to the 2018 forecast:

• Improve forecasts for Satsop Business Park
• Decrease forecast of $4,000 for the Westport Marina
• Refined shipping forecast based upon customer projections, decreased forecast $270,000.
• No change in forecasts for Industrial Properties and Bowerman Airport operations
• General Fund ending balance is expected to be $7.4 million

Satsop Business Park Strategy Session
Shelli Hopsecger, Consultant with CCAI, led a discussion with Commissioners and Staff focusing on how we manage today’s activities so we can fund our future. 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. Ms. Hopsecger reported the three mission driven themes, jobs, investment, and stewardship have been the focus of the Port Commissioners since assuming the assets of Satsop Business Park in 2013. 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 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.

There being no further business to come before the Commission, the Regular Meeting recessed at 11:35 a.m.