Port of Grays Harbor

Commission Meeting

February 13, 2018

The Port of Grays Harbor Commission Meeting for February 13, 2018 was called to order at 9:00 a.m.

Mike Johnson, Contract and Project Manager led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Chuck Caldwell - Commissioner
Stan Pinnick - Commissioner
Jack Thompson - Commissioner
Gary Nelson - Executive Director
Arthur Blauvelt - Legal Counsel
Mary Nelson - Director of Finance & Administration
Leonard Barnes - Deputy Executive Director
Mike Johnson - Contract and Project Manager
Randy Lewis - Director of Environmental and Engineering Services
Molly Bold - Westport Business Manager
Alissa Shay - Manager of Business Development
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Lisa Benn - Accounting Manager
Keya Bernhardt - Communications & Administrative Coordinator

VISITORS
Bob Esposito - Citizen
Arnie Martin - GHAS
Linda Orgel - CCH
William Schmauss - HALA
Cindy Taylor - Rainer Connect
Loranne Chambers - Rainer Connect
Steve Ensley - Ocean Shores City Council

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 January 9, 2018 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 175 through 181 inclusive.

2. By motion made by Commissioner Thompson, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of January 24, 2018 Special Commission Meeting as recorded in the Minutes Book No. 20 on pages 182 through 185 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Thompson, the Commission unanimously approved for payment those Payroll Vouchers issued January 19, 2018 and February 5, 2018, ACH/Wire Transfers No. 99900970 through and including No. 99900981, and General Disbursement Vouchers No. 96169 through and including No. 96390 for payment in the amount of $2,679,073.97.

REPORTS:

Harbor Alternate Living Association (HALA)
Leonard Barnes introduced William Schmauss, HALA Executive Director. HALA has been serving people in Grays Harbor for over 35 years with a goal of assisting adults with developmental disabilities by building their independent living skills and encouraging their integration into the greater community. Their programs are designed to assist individuals to develop self-determination, independence, and competence by providing needed support for daily living. Employment/vocational coordination, establishing and maintaining a home, cooking and shopping for food, budgeting and money management, and health and nutrition are a few of the programs they currently provide.

HALA will be expanding their operations to 200+ employees and contract over 250,000 hours per year. HALA will be entering into a new lease with the Port to accommodate their expansion. Mr. Schmauss is looking forward to the years ahead and has enjoyed working with the Port thus far.

Westport Storm Event and Viewing Tower Damages Report
Molly Bold reported on Westport viewing tower damages. On January 18th, the Pacific Coast experienced a significant weather event. High tides, tremendous storm surge and strong winds which resulted in a coast wide wave event with ocean waves measuring 30-40 feet. The Westport Centennial Viewing Tower was damaged as a result of the activity.

The stainless steel panels that enclose the ramp were completely broken out of the structure. Large boulders, sand, debris, and logs covered the entire ramp and areas surrounding the viewing tower. There is no damage to the cement structure apart from minor scratches and the rail posts remain solid.

Marina staff worked with city staff to quickly clean up the street and sidewalk areas within a matter of 48 hours. Staff was able to repair and reinstall all of the stainless steel panels with no cost. Staff is looking into solutions that might minimize debris from regular over topping of the revetment.

PGH Terminal Dredging Report
Randy Lewis reported that the terminal maintenance dredging summer work with American Construction Company had been completed. Terminal Nos. 1, 2 and 4 were dredged. A total of 43,421 cubic yards of material was removed and deposited at the Point Chehalis Disposal Site. A slide show was provided showing pre- and post-dredge bathymetry survey results of each affected terminal.

Cradle to Career Consortium Report
Chris Hunt reported on the Port’s participation in Grays Harbor Cradle to Career Consortium. The Port’s representative currently serves as chair of the group and is actively involved in the Career Readiness/STEAM subcommittee. The benefits to our tenants, customers and community is in helping to ensure a local workforce that is more capable, better trained and has the background necessary to be successful in the future. This in turn brings workforce satisfaction and stability and attracts businesses to our area.

Future work includes identifying one or two local businesses that have trouble filling positions to champion the project and to work with Cradle to Career to form an apprenticeship or pre-apprenticeship program. From there Cradle to Career can form articulation agreements with local training facilities and public school CTE programs to ensure that students learn the skills that local businesses are looking for.

The program will continue to work with local businesses to identify their workforce needs and establish a framework whereby schools and other organizations can articulate and establish effective partnerships

Public Information Report
Kayla Dunlap reported that Contanda submitted new permit applications and SEPA Evaluation to the City of Hoquiam for a liquid bulk storage expansion on their existing lease footprint. Contanda also announced they have officially withdrawn their previous application that included the storage and transfer of crude oil. Contanda’s complete application and Evaluations are available on the City of Hoquiam’s website for review.

The Capital Budget was passed by the Legislature on January 18th and signed by the Governor on January 21st. It included $2.5 million for the Westport Marina Dredging project and authorization for RCO grants including the Boating Facilities Program which will fund the Westport Marina Boat Launch Upland improvements.

Vessel Activity
Leonard Barnes reported for January 2018 the Port had calls from seven deepwater vessels and one barge, which resulted in 139,007 MT of cargo being handled. Year-to-date, the Port has handled 7 ships, 1 barge and 139,000 MT of cargo.

Public Comment:
Arnie Martin, of Hoquiam, wanted to mention if the Port increases the volume moved on the rail system the railroad doesn’t have adequate plans for maintenance.

Mr. Michael Dickenson wanted to bring attention to a new program in Grays Harbor called Art Drive; this program has brought 86 new artists into the area.

ACTION/RESOLUTION ITEMS:

Action Item No. 1
Leonard Barnes requested authorization for Executive Director to enter into Rental Agreement No. 1151 with Paneltech International, LLC.

Motion to authorize the Executive Director to enter into Rental Agreement No. 1151 with Paneltech International, LLC. was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with a vote of 3-0.

Action Item No. 2
Mike Johnson requested the authorization of the Executive Director to Award Contract No.1934, 28th Street Boat Launch Improvements Phase II

Motion to authorize the Executive Director to award Contract No. 1934, 28th Street Boat Launch Improvements Phase II to Rognlin’s, Inc., in the amount of $1,818,947.78 was made by Commissioner Pinnick and seconded by Commissioner Thompson. Motion passed with a vote of 3-0.

WORKSHOP: PGH Year End Financial Review
Mary Nelson reported on the 2017 year-end financial review. The Port continues to be a positive business environment for economic growth and creation of jobs. 2017 expanded the flow of trade and transportation through the Grays Harbor region.

The key development strategies include, private partners willing to invest on Port property, due diligence by all parties, growing long-term markets, leverage Port resources, diversification, and strategic infrastructure development. The operating revenues for 2017 are up 11% from 2016.

The Marine terminals have been running at a higher volume than last year. There were 108 vessels called to the Port equaling 2.5 million metric tons of cargo and 90% of them bound for export trade.

Visitors/Public Comment:
N/A

NEW BUSINESS:
Mr. Nelson noted future meeting and events:
• Crab Feed – February 13th
• State of the Port Breakfast – February 14th
• Lower Satsop Meeting – February 16th
• Nebraska Meeting – March 5th

The Regular Meeting was recessed at 10:33 a.m. for a Special Meeting of the Industrial Development Corporation.
The Special Meeting of the Industrial Development Corporation was closed at 10:34 a.m. and the Regular Commission Meeting reconvened.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:39 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 1:15 p.m. and the Regular Meeting adjourned at that time.