Port of Grays Harbor

Commission Meeting

June 14, 2016

The Port of Grays Harbor Commission Meeting for June 14, 2016 was called to order at 9:00 a.m.

Mike Johnson, Contract & 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
Mike Johnson - Contract & Project Manager
Randy Lewis - Director of Environmental and Engineering Services
Leonard Barnes - Deputy Executive Director
Marisa Yauch - Executive Administrative Assistant
Robin Leraas - Westport Marina Manager
Alissa Shay - Manager of Business Development
Shannon Anderson - Business & Trade Development Asst.
Seth Taylor - Marine Terminals Manager
Kayla Dunlap - Public Affairs Manager
Lisa Benn - Accounting Manager
Chris Hunt - IT Manager
Ken Rausch - Marina Operations Manager

VISITORS
Ray Brown - GHGOP
Greg Mueller - WA State Trollers Assoc.
Fred Rapp - Custom Security/ReachOne
Cindy Taylor - Rainier Connect
Fred Goheen - Jones Stevedoring
Jon Davies - BHC
Marc Horton - Washington Project Consultants
Linda Orgel - CCH
Tammy Domike - CCH
Dave Haviland - Jodesha
Diana Gergel - University of Washington
Michael Cornman - Westport Seafood, Inc.
Rosie Litterer - Rusty Scupper’s Coordinator

Items discussed and action taken where required is as follows:

MINUTES:
1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of May 10, 2016 Regular Commission Meeting as recorded in the Minutes Book No. 19 on pages 216 through 223 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued May 20, 2016 and June 3, 2016, ACH/Wire Transfers No. 99900684 through and including No. 99900707 and General Disbursement Vouchers No. 91285 through and including No. 91607 for payment in the amount of $5,313,924.68.

REPORTS:

Raven’s Challenge X June 20-24
Alissa Shay introduced Brennan Phillips, ATF Explosives Enforcement Officer. The Raven’s Challenge exercise has been going for ten years and Satsop has been one of the locations used for the last three years. The military organizes settings throughout the country for extensive training exercises and Satsop will be the last of four sites in the country used for a week long military training session in 2016. One assignment they will focus on at SBP is explosives; learning skills to deal with downed explosives and IED mitigation. Other complex scenarios including potential bombs that need to be disabled and various hostage situations will also be addressed. Throughout the week, various situations military personnel could be faced with are simulated from terrorism to civilian or military needs.

The exercise bridges the gap between Portland and Seattle area military and also will include international soldiers from countries needing more experience with large threats. These trainings are designed to take all trainees out of their comfort zones for scenarios they could encounter in real crisis activity.

Commissioner Pinnick asked how many people were coming for the trainings and where they planned to stay. Officer Phillips stated that contracts were put out to bid for lodging and food service during the trainings. They will have about 200 people; some will stay at a hotel in Elma and some will stay at the Little Creek Casino. They will be fed by a company out of Chehalis who won that bid. He also mentioned there is a media day where the media and the public are welcome to come up and watch some of the training activities.

Westport Marina Activities Update
Robin Leraas talked about the current activities at the Westport Marina. It is very busy in the Marina and they are working to juggle monthly berths along with Float 21 which is a first come first served pay as you stay berth.

This summer the maintenance team, which includes 5 seasonal summer staff, will be working to get things spruced up throughout the marina area. It is shaping up to be a busy summer and the marina is working hard to keep commercial and recreational fishermen happy.

Greg Mueller spoke on the current state of the fisheries and the fact that the tuna season is looking strong this year. Warmer water temps are bringing the tuna a bit closer to land and they have arrived three weeks earlier this year. The numbers from fishermen coming up from San Diego have been strong so far and they are optimistic it is going to be a good year for tuna.

Ms. Leraas stated the fact that Puget Sound has not opened any salmon fishing has caused a large influx at the marina. This along with the strong tuna expected and the fact that there is no mooring for boats in Ocean Shores has increased demand.

Michael Cornman from Westport Seafood, Inc. introduced himself. They are the largest provider of live bait for tuna fishermen out of Westport and it has been hard to keep their stock safe due to the public and sea lions getting into their bait. They would like to put money into installing professional grade chain link fence to secure bait from predators and keep the public safe from this industrial activity. They would like to install some semi-permanent attachments to Float 4, and acknowledge that WSI would be responsible for any costs of float repairs relating to these attachments which will be removed when no longer needed.

Mr. Cornman expressed his appreciation of the Port and especially staff out at the marina. They are very happy to continue to do business out there having started as a small family run business and now generating many additional jobs in the area.

Mr. Cornman also inquired about a sign located in Westport that is on Port property. He is interested in leasing the sign to advertise Merino’s Seafood. Leonard Barnes is in charge of this and will be in touch with Mr. Cornman about lease options.

Rusty Scupper’s Pirate Daze
Rosie Litterer the coordinator of Rusty Scupper’s Pirate Daze welcomed everyone to come out and enjoy the festival which will take place June 24th through 26th. She said there would be 8 or 9 different bands playing throughout the weekend, fire dancers, belly dancers and a larger parade than years past. Everything is going to be on a higher scale and planning for the event has been going smoothly. She gave a big thank you to the Commissioners for all they have done for the festival and hopes many can attend.

University of Washington OLYMPEX Project at SBP
Alissa Shay introduced Diana Gergel a Ph.D. student from the University of Washington. She reported on a project she was a part of that included NASA and a few other universities. The goal of their research is to help predict large water events and potential floods in the area. This study went from November of 2015 to February of 2016 at the Satsop location where they installed rain gauges, but they were studying all of the Olympic Peninsula and the Chehalis basin taking measurements throughout. Working with ground instruments, and collaborating with NASA planes which connected to satellites they collected a variety of data. This data will be used to incorporate a rain gauge network into precipitation and streamflow comparisons. They will also be comparing ground observations with satellite measurements to improve satellite rain algorithms.

Commissioner Thompson mentioned that prior to the Port acquiring SBP there were rain gauges placed up there and data collected for about 10 years. Ms. Gergel thought this would be interesting to compare and would like to see what kind of information was recorded.

Public Information Report
Kayla Dunlap reported on June 3rd 16 cars of a 96 car rail train derailed and caught fire near Mosier, Oregon on the Columbia River Gorge. About 42,000 gallons of Crude Oil were released with 10,000 gallons recovered. It was determined that broken bolts were the cause of the derailment and the railroad is working to fix these issues immediately.

Public tours of the Port’s marine terminals and Satsop Business Park walking tours were announced late last month and will take place in July and August; all of these can be scheduled through the Port’s main office.

The Port will continue outreach presentations throughout the county with three scheduled for District 1. Outreach presentations are given at their respective City Council meetings which will be July 11th in Oakville, July 13th in McCleary and July 18th in Elma.

Vessel Activity
Leonard Barnes announced in May 2016 the Port handled nine deep water vessels and no barges which resulted in 178,286.173 MT of cargo. YTD import/export cargo totals 840,261.309 MT and total ship calls are 34 ships and 3 barges.

Commissioner Pinnick asked if log export was picking up. Mr. Barnes reported that it has picked up and they are working on more certifications; their business has been steady.

Commissioner Thompson acknowledged Glen Ramiske a former ILWU member. He was in the audience and said a brief hello to Commissioners and staff.

Public Comment:
Fred Rapp from Elma introduced a guest with him from Rainier Connect. He stated that this acquisition of ReachOne by Rainier Connect will increase service for customers greatly. The new representative for this area is Cindy Taylor who was hired for sales in this area.

Resolution 2906
Randy Lewis reported on the approval of the 6 year Transportation Improvement Program (TIP). On an annual basis the Port is required to update its 6 year TIP which allows the listed projects to be eligible for state or federal funding. This plan is also used as a local planning tool for projects that may not be eligible for state or federal funding but are still surface transportation related. The plan can be updated during the year if necessary for changes in project definitions and required information.

Mr. Lewis stated there were no changes reflected on projects from last year to this year. He pointed out that it is better to leave a project on the plan right up until it is fully complete in case things change. The Port can always leave a project in, but to add a project at any point requires an amendment to the plan.

Motion to adopt Resolution No. 2906: Adoption of the Port of Grays Harbor Six Year Transportation Improvement Program 2017-2022 was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0. Resolution Adopted.

Public Comment:
No public comment

NEW BUSINESS:
Jack Thompson commended the Finance Department and other Staff on the finalization of the Port Audit. For the 22nd year the Port received a clean audit. Mary Nelson commended staff on accountability for contracting and cooperation through the audit. Staff has to come together to make this work, and everyone makes a point of getting requested information to the auditors quickly and efficiently.

Gary Nelson went over a few dates for upcoming events and also commended staff on another good audit review.
• June 16 – Pilotage meeting in Seattle
• June 17 – Northern Crop Institute Tour
• June 21 – South Dakota Soybean Association

Mr. Nelson also stated and he and Leonard Barnes had traveled to the East coast last week for a Cargo Seminar. While there, they had a meeting with Siem Car Carriers and worked to maintain the relationship with Chrysler automotive and increase inbound business. They also went to Genesee & Wyoming headquarters in Jacksonville, FL.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:35 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 a half.

The Executive Session ended at 12:00 p.m., and the Regular Meeting adjourned at that time.