Port of Grays Harbor

Commission Meeting

November 13, 2018

The Port of Grays Harbor Commission Meeting for November 13, 2018 was called to order at 9:01 a.m.

Leonard Barnes, Deputy Executive Director, 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
October 16, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 256 through 261 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Papac, the Commission unanimously approved for payment those Payroll Vouchers issued October 20, 2018 and November 5, 2018, ACH/Wire Transfers No. 999001098 through and including No. 999001110, and General Disbursement Vouchers No. 98168 through and including No. 98405 for payment in the amount of $3,174,564.28.

WORKSHOPS:
Service Agreements for 2019

Mike Folkers introduced the presenters explaining the history of the Port funding to help organizations working on projects for the betterment of Grays Harbor County.

Dru Garson from Greater Grays Harbor Inc. (GGH) spoke of the many projects they have accomplished and are working on in 2018. Staff continues to work to attract new businesses to the area and retain the businesses that are currently here. GGH’s goal is to make it possible for individuals to purchase local products directly through the website. GGH holds many local events to help business leaders connect with community leaders and work with local politicians. GGH is looking for the same level of financial support the Port contributed for 2018 and looks forward to continued progress in our business community.

Terry Nielsen of the Chehalis Basin Fisheries Task Force (CBFTF) provided a power point presentation on the 2018 year in review. She thanked the Port for their continued support on behalf of the board of directors. Funds from Port support last year went to the egg & carcass project, spawning for broodstock project, and habitat restoration projects.

Friends Landing Rate Update
Alissa Shay, reported on the Friends Landing rate update. Ms. Shay reported that since the Port took on the assets of Friends Landing in 2014 we have continuously reviewed the rates and policies and made changes as needed. This past year we completed a rate study of surrounding campgrounds. We compared the facilities and rates of other campgrounds to Friends Landing. After our review we determined that a rate increase is justified relative to comparable campgrounds in our area. In addition to the market rationale for an increase we have experienced increased cost for operations, services and supplies to maintain Friends Landing as a premier destination for our guests.

The new rates will take effect on November 16, 2018 following the closure of the 2018 season. All new reservations placed on or after November 16 will be for the 2019 season.

Westport Marina Summer Activity Report
Molly Bold, reported on the Westport summer activity. The marina summer crew consisted of 10 employees, including seasonal and year round. Ms. Bold reported that the office updates included, new marina management software, quarterly newsletters, updates on office paint, signs, and photos. There has also been a new online reservation system implemented through Doc WA.

Ms. Bold reported on the Westport Marina maintenance updates. Those updates included the maintenance of 500 plus slips, and 17 floats, public restroom facilities, fisherman boardwalk, the centennial viewing tower, and parking facilities for the marina district.

This year’s derby winner was Masaru Tahara with a 26.35lb fish and a $10,000 prize.

The marina district events included:
• WDCFA Crab Derby & Races
• Blessing of the Fleet
• Rusty Scupper’s Pirate Daze
• Washington Tuna Classic
• Westport Art Festival
• Hood 2 Coast

Public Information Report
Ms. Dunlap reported that the Joint Public Notice for BHP’s proposed potash export facility was issued on October 17th by the US Army Corps of Engineers and WA State Dept. of Ecology. Ms. Dunlap reported that the Corps will be accepting public comment on the public notice through Friday, November 16th. Ms. Dunlap reminded commission that the Notice and more information about the project can be found on the BHP website.

Vessel Activity
Leonard Barnes reported for October 2018 the Port had calls from 8 deep-water vessels and 0 barges, which resulted in 204,000 MT of cargo being handled. Year-to-date, the Port has handled 91 ships, 13 barges and 2 million MT of cargo.

Public Comment:
N/A

DISCUSSION:
Art Blauvelt, General Counsel discussed the next step in the process of selecting the District #2 resident who will fill the vacancy being created by the unexpected death of Commissioner Jack Thompson.

Mr. Blauvelt reported that at the direction of the Commission the Port staff advertised the vacancy, provided both print and electronic application forms, and presented a Port orientation for potential applicants on Wednesday, November 7. The deadline for applications was Friday, November 9, 2018 at 5:00 pm.

Mr. Blauvelt reported that the Port has received a number of applications. Copies of the applications been provided to Commissioners Pinnick and Papac for their review.

Commissioner Pinnick, announced each applicant.

The Commission has had an opportunity to review the applications and can determine to interview all or a certain number of the applicants based on the qualifications revealed in their written applications. In the alternative, it can determine to interview all of the applicants. The decision is up to the Commission.

RECESS: the Regular Commission Meeting and entered into Executive Session 9:55

RECONVENED: 10:05

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Art Blauvelt, requested Commission direction to staff regarding the format for the Candidate Interviews.

A motion to direct staff to request all applicants to be present for interviews by the Commission at the special meeting scheduled for Monday, November 26, beginning at 5:30 pm 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 approve purchase of Petroleum Products from MASCO Petroleum

Motion to authorize the Executive Director to approve purchase of Petroleum Products from MASCO Petroleum was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

Action Item No. 3
Mike Johnson, requested authorization for the Executive Director to Proceed on Port of Grays Harbor Contract No. 1987 Janitorial Services with BC Services Clean Crew in the amount of $63,304.37.

Motion to authorize the Executive Director to Proceed on Port of Grays Harbor Contract No. 1987 Janitorial Services with BC Services Clean Crew in the amount of $63,304.37.made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0.

RECESS: Regular Commission meeting was recessed at 10:42 a.m. and the Public Hearing convened at that time.

Public Hearing - 2019 Budget
Mike Folkers reported on the public hearing being held today in regards to the 2019 Port budget. This was advertised in the paper to the public prior to the meeting. Mr. Folkers mentioned that the budget had been available to the public in a booklet at the last meeting as well as here today.

The proposed 2019 budget includes operating revenues totaling $32.8 million and expenses of $29.3 million. The Port’s cash reserves are expected to be $22.2 million at the end of 2019, with $11.1 million maintained in the general fund. The capital budget includes $10.9 million to fund the Port’s 2019 Capital Improvement Plan, with funding of $6 million from grants, $2.7 million from the property tax levy, and the remaining from net operating revenues.

Public Comment:
No public comment

The Public Hearing was closed at 10:52 a.m. and the Regular Commission Meeting reconvened at that time.

Resolution 2961
Mike Folkers presented for Commission consideration, Resolution No. 2961, A Resolution of The Commission of The Port of Grays Harbor Authorizing The Port’s 2018 Property Tax Levy for Collection In 2019

Motion to adopt Resolution No. 2961: A Resolution of The Commission of The Port of Grays Harbor Authorizing The Port’s 2018 Property Tax Levy for Collection In 2019 was made by Commissioner Papac and seconded by Commissioner Pinnick. Motion passed with a vote of 2-0. Resolution adopted.
Resolution 2962
Mike Folkers, presented for Commission consideration, Resolution No. 2962, A Resolution of The Commission of The Port of Grays Harbor Adopting The Port’s 2019 Budget.

Motion to adopt Resolution No. 2962: A Resolution of The Commission of The Port of Grays Harbor Adopting The Port’s 2019 Budget was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 2-0. Resolution adopted.

Resolution 2963
Mike Johnson, presented for Commission consideration, Resolution No. 2963, Completion and Acceptance of Contract No. 1949 Terminal Maintenance Dredging.

Motion to adopt Resolution No. 2962: Completion and Acceptance of Contract No. 1949 Terminal Maintenance Dredging was made by Commissioner Pinnick and seconded by Commissioner Papac. Motion passed with a vote of 2-0. Resolution adopted.

Visitors/Public Comment:
N/A

NEW BUSINESS:

Mr. Nelson noted future meetings and events:
• November 15 – Pilotage
• November 16 – Commissioner Jack Thompson’s Service
• November 26 – Special Commission Meeting
• November 27 – Special Commission Meeting
• December 11– Commission Meeting

There being no further business to come before the Commission, the Regular Meeting recessed at 11:15 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 an hour and 15 minutes.

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