Port of Grays Harbor

Commission Meeting

October 16, 2018

The Port of Grays Harbor Commission Meeting for October 16, 2018 was called to order at 8:59 a.m.

Randy Lewis, Director of Environmental and Engineering Services, led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Phil Papac - Commissioner
Stan Pinnick - 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
Seth Taylor - Marine Terminals Manager
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Molly Bold - Westport Business Manager
Keya Bernhardt - Communications & Administrative Coordinator
Lisa Benn - Accounting Manager

VISITORS
Tim Horton - SCI
Glenn Ludwig - Citizen
Steve Wolfe - Citizen
Arnie Martin - Citizen
Rob Bearden - Westport Mayor
David Ward - Grays Harbor PUD
Ian Cope - Grays Harbor PUD
Allen Shores - Citizen
Linda Orgel - FOGH
Tom Quigg - Citizen

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Papac, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes
of September 11, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 244 through 250 inclusive.

2. By motion made by Commissioner Papac, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes
of October 4, 2018 Special Commission Meeting as recorded in the Minutes Book No. 20 on pages 251 through 255 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Papac, the Commission unanimously approved for payment those Payroll Vouchers issued August 20, 2018 and September 5, 2018, ACH/Wire Transfers No. 999001070 through and including No. 999001085, and General Disbursement Vouchers No. 97728 through and including No. 97952 for payment in the amount of $3,456,408.01.

WORKSHOPS:
Grays Harbor PUD Annual Outreach
Kayla Dunlap, introduced Ian Cope, Communications & Government Relations Director, Grays Harbor PUD, and Dave Ward, CEO, Grays Harbor PUD. Ian, reported that the mission of Grays Harbor PUD is to “Serve the community with high quality utility services at the lowest practical cost.” There are nearly 60 line and substation crew members with over 1800 miles of distribution and transmission lines.

Mr. Cope reported that they are working with companies to improve their internet service and the availability of those services is a way the utility advocates for economic development in Grays Harbor.

In 2019, the PUD will work with local tribes and the Port of Grays Harbor on a number of fiber improvement projects.

Mr. Cope reported that the PUD celebrated many milestones this year. It marked its 80th anniversary, and had a clean report on accountability and financial statements from the Washington State Auditor’s office.

The PUD goals for 2019 include:
• Continued tradition of utility reliability and safety through sound asset management.
• Passage of $126.1-million operating budget, with a a $9.1-million capital budget focusing on infrastructure management.
• Continue growth of utility telecommunications.

Contract No. 1968 Pilot Boat Maintenance Update
Mike Johnson, reported on contract No. 1968 Pilot Boat Maintenance. Annual maintenance to the Pilot Boat “Chehalis” was completed the prior week and the boat is back in the water in service. The work completed included:
• Hauled-out, pressure washed and cleaned hull, primed and painted below waterline, replaced zincs, inspected wheel, rudder and repacked the shaft stuffing box
• Sandblasted and painted the deck
• Replaced wasted steel on deck
• Cleaned and inspected all hatch covers
• Repaired rust areas around window and portholes
• Repaired mounts for pilot boarding platforms
• Installed LED Lighting

The final billing is being processed and bid amount submitted by The Shipyard LLC is estimated to be approximately $106,000.00. Funds for the repairs will come from the Pilotage Budget.

Public Information Report
Ms. Dunlap reported that on September 21st the President signed an FY2019 minibus that included funding for the Corps of Engineers. This is the first time in 15 years the Corps will have their budget on time. The bill included $7 billion for the agency, including robust additional funding and $1.54 billion from the Harbor Maintenance Trust Fund (91% of HMT collections). The Corps is now tasked for developing a work plan to spend the additional funding and submit it to Congress around November 20th.

Ms. Dunlap reported that the Annual Public Outreach includes the following dates:
• October 18 – Westport
• AGP November 7 – All in Ocean Shores

Vessel Activity
Leonard Barnes reported for September 2018 the Port had calls from 7 deep-water vessels and 1 barge, which resulted in 204,000 MT of cargo being handled. Year-to-date, the Port has handled 83 ships, 13 barges and 1.8 million MT of cargo.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Folkers, requested authorization for the Executive Director to accept the 2019 Preliminary Budget as presented by staff, and to schedule a public hearing for the budget on November 13, 2018 during the Port Commission’s regular meeting.

Motion to authorize the Executive Director to accept the 2019 Preliminary Budget as presented by staff, and to schedule a public hearing for the budget on November 13, 2018 during the Port Commission’s regular meeting was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

Action Item No. 2
Mike Johnson, requested authorization for the Executive Director to Call for Bids on Contract No. 1983 Terminal Maintenance Dredging.

Motion to authorize the Executive Director to Call for Bids on Contract No. 1983 Terminal Maintenance Dredging was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

Action Item No. 3
Molly Bold, requested authorization for the Executive Director to approve the recommendations for the proposed rezone of Port Property in the Westport Marina District, and provide recommendations to the City of Westport for consideration in their planning process.

Motion to authorize the Executive Director to approve the recommendations for the proposed rezone of Port Property in the Westport Marina District, and provide recommendations to the City of Westport for consideration in their planning process made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

Action Item No. 4
Leonard Barnes, requested authorization for the Executive Director to enter into a new lease agreement with Eric and Kevin Nations for the Port property currently leased by Tracey Lutton. As part of the transaction the Lutton lease will be terminated and the Nations Lease will commence. This property is located on Maple Street.

Motion to authorize the Executive Director to to enter into Lease No. 1152 with the Nations was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

Resolution 2959
Mike Johnson presented for Commission consideration, Resolution No. 2959, Authorization to Accept Completed Contract No. 1934, 28th Street Boat Launch Improvements Phase II

Motion to adopt Resolution No. 2959: Completion and Acceptance of Contract No. 1934 28th Street Boat Launch Improvements Phase II was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0. Resolution adopted.
Resolution 2960
Mike Folkers, presented for Commission consideration, Resolution No. 2960, A Resolution Of The Port Commission Of The Port Of Grays Harbor Authorizing The Executive Director To Write Off Certain Accounts Receivable Accounts As Bad Debts.

Motion to adopt Resolution No. 2960: A Resolution of The Port Commission of The Port of Grays Harbor Authorizing The Executive Director To Write Off Certain Accounts Receivable Accounts As Bad Debts was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 2-0. Resolution adopted.

Visitors/Public Comment:
Glen Levick, Aberdeen, WA, recommended renaming the 28th boat launch after the late Commissioner Jack Thompson.

NEW BUSINESS:
Art Blauvelt, presented for Commission consideration, the reorganization of the Commissioners. Motion to reorganize the board to Pinnick, President, and Papac as Vice President was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 2-0.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:48 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 an hour and 15 minutes.

The Executive Session ended at 1:45 p.m. and the Regular Meeting adjourned at that time.