Port of Grays Harbor

Commission Meeting Agenda

August 9, 2016

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

Art Blauvelt, Legal Counsel led the meeting in the Pledge of Allegiance.

Those in attendance at the meeting were as follows:

COMMISSION AND STAFF
Jack Thompson - Commissioner
Stan Pinnick - Commissioner
Chuck Caldwell - Commissioner, by phone
Gary Nelson - Executive Director
Arthur Blauvelt - Legal Counsel
Mary Nelson - Director of Finance & Administration
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.
Kayla Dunlap - Public Affairs Manager
Chris Hunt - IT Manager
Ross Read - Operations Manager

VISITORS
Bob Peterson - Ocean Shores City Council
Fred Rapp - Custom Sec.
Cindy Taylor - Rainier Connect
Connie Newton - Westport Art Festival
Arnie Martin - GHAS
Samantha Cibelli - Siem Car Carriers
Fred Goheen - JSC
Dave Haviland - Jodesha
Ray Brown - GHGOP
Linda Orgel - CCH
Jeff Burgin - Pasha
Randy Kedis - Pasha
Tim Ryker - Pasha
Bob Esposito - Hoquiam Private Citizen

Items discussed and action taken where required is as follows:

MINUTES:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson and unanimously approved, the Commission adopted the Minutes of July 12, 2016 Regular Commission Meeting as recorded in the Minutes Book No. 19 on pages 231 through 238 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson, the Commission unanimously approved for payment those Payroll Vouchers issued July 20, 2016 and August 5, 2016, ACH/Wire Transfers No. 99900719 through and including No. 99900732 and General Disbursement Vouchers No. 91802 through and including No. 92014 for payment in the amount of $3,755,223.65.

REPORTS:
Westport Art Festival
Connie Newton of the Westport Art Festival announced this will be the 19th year of the festival. This is her second year heading it up and it is ready with an abundance of wonderful artists. Ms. Newton mentioned that they are excited for the festivities to begin. The festival will be held August 20th and 21st at the Westport Marina and Maritime Museum area. They hope to help increase tourism on the coast with this traditional summer festival. In addition to this year, planning has already begun for next year. 2017 will be the 20th year celebration; a milestone for the festival.

Lower Satsop River/Keys Road Property Update
Alissa Shay spoke of the property lines at Satsop Business Park in regards to the project Washington State Department of Fish and Wildlife recently proposed to change the flow of the Chehalis River. Extensive research has been conducted concerning different ways WDFW could make changes with the goal of protecting Keys Road during times of flood. SBP owns 60 acres on the Chehalis River and Keys Road. The Port area is very specific, and staff is currently waiting on more information from WDFW to make a decision on whether the Port will allow proposed changes to be made on Port property. The Port has requested to view the hydraulic modeling before agreeing to changes involving the property.

Pasha Stevedoring Terminal Marketing Video
Leonard Barnes introduced Jeff Burgin, Sr. VP PST, Tim Ryker, PST, and Samantha Cibelli, Siem Car Carriers AS. Jeff Burgin spoke of the tremendous partnership they value between Pasha and the Port for the last 8 years. They are happy to provide jobs in this community and employ over 75 people locally. They continue to look for ways to reduce their carbon footprint and increase efficiency and are planning new projects out for the next seven years. Mr. Ryker commented that he has been here for six years and wants to continue to see growth in the business and local jobs. The Pasha promotional video was shown and reaction was very positive. The video will be posted for public viewing on the PGH website which showcases Pasha while promoting commerce throughout the Port.

Public Information Report
Kayla Dunlap reported that the final EIS for the Westway expansion project is due at the end of September.

Public tours of the Port’s Marine Terminals and Satsop Business Park are filling up, but if more interest is shown additional dates may be added into early fall.

The Port continues community outreach presentations throughout the county and will plan to present at City Council meetings in Westport on September 15th and Aberdeen on September 28th.

Vessel Activity
Leonard Barnes announced in July 2016 the Port handled seven deep water ships, resulting in 179,056.544 MT of cargo. YTD import/export cargo totals 1,179,849.307 MT and total ship calls are 48 ships and four barges.

Mr. Barnes mentioned there is a lot of activity in the harbor right now between commerce vessels and dredging. AGP ships have been loading a mixture in one vessel of soy bean meal, soy beans and distiller dry grains separated in compartments.

Projections from AGP are looking strong based on meetings over seas. Their expansion project is also on target to be open around September.

Public Comment:
Fred Rapp of Elma stated what a terrific job the Stevedores do here. He stated they have an excellent safety record with little damage.

Mr. Rapp also wanted to announce this afternoon at 5:30 there will be a business-after-hours event held at the Children’s Advocacy Center. The East County Rotary has helped fundraise over $220,000 for this cause and has helped keep the CAC in business for the last few years. He would encourage all to come to the networking event this evening.

ACTION ITEMS:
Action Item No. 1
Randy Lewis reported on the authorization to award Contract No. 1878, Terminal 4B Dolphin Replacement.

Engineering specifics were provided by BERGER/ABAM Engineers, Inc. for replacement of the existing mooring dolphin at T-4B. Construction will include removal of the existing creosote wood dolphin and installing the new dolphin according to the engineering specs.

A call for bids was approved by the Commission on July 12, 2016 and bids were received from five contractors. The low bid was received from Rognlin’s Inc. in the amount of $413,739.08.

Funds for this project will come from the Port’s Capital Budget which includes funds for design, engineering, construction and contingencies.

Motion to authorize the Executive Director to Award Contract No. 1878, Terminal 4B Dolphin Replacement, to Rognlin’s, Inc., in the amount of $413,739.08 (includes WSST), was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 2
Leonard Barnes reported on the authorization to allow a second amendment to Lease Agreement 995 with RPMM, LLC.

A request is made for Port staff to amend paragraph three, “Option to Renew” to add an additional three, five-year periods after the initial term. Also, paragraph eight which refers to the “Use of Premises” will now allow the selling of ice, bait and fish processing.

RPMM, LLC has been a tenant at Firecracker Point since 2005 and began offloading seafood in 2009 after the installation of two docks and a hoist.

In 2011 the existing lease was amended to include storage and dispensing of petroleum products to further develop services offered.

RPMM, LLC is requesting a second amendment as outlined above and staff is requesting that all other aspects of the lease remain the same. There is no change in the fiscal impact of the lease.

Motion to authorize the Executive Director to amend Lease Agreement No. 995 with RPMM, LLC to change Section Three, “Options to Renew”, to add three successive five-year options to renew and Section Eight, “Use of Premises”, to allow a change of use for fish processing and the selling of ice and bait, was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 3
Leonard Barnes reported on the authorization to approve lease agreement No. 1144, Little Green, LLC, DBA Paneltech, for approximately 15,000 square feet (units A, B, & C) in Warehouse A, located at 3001 John Stevens Way, Hoquiam.

Little Green, LLC, DBA Paneltech currently leases 5,000 square feet in Unit A to store materials. With the departure of Long Beach Shavings, Little Green has requested to extend their leasehold units to include B & C to allow for more storage.

Lease No. 947, which has been on a month to month basis since 2011, will be terminated with the execution of this new lease.

This agreement will be for a five-year initial term with two successive five-year options to renew. The monthly rent will be $2,700; annual rent will be $32,400, plus Washington State Leasehold Tax. Insurance and Performance bonds will be in place before the agreement is executed.

Motion to authorize the Executive Director to enter into Lease Agreement No. 1144 with Little Green, LLC, DBA Paneltech, was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 4
Leonard Barnes reported on the authorization to approve lease agreement No. 1145, Little Green, LLC, DBA Paneltech, for approximately 10,000 square feet (units D & E) in Warehouse A, located at 3001 John Stevens Way, Hoquiam.

Little Green, LLC, DBA Paneltech currently leases 5,000 square feet in Unit A to store materials. With the departure of Long Beach Shavings, Little Green has requested to extend their leasehold units to include D & E to allow for more storage.

This agreement will be a month to month term. The monthly rent will be $1,500; annual rent will be $18,000, plus Washington State Leasehold Tax. Insurance and Performance bonds will be in place before the agreement is executed.

Motion to authorize the Executive Director to enter into Lease Agreement No. 1145 with Little Green, LLC, DBA Paneltech, was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Resolution 2907
Mary Nelson reported on the approval of Resolution No. 2907, authorizing the Executive Director to amend the Grays Harbor Pilotage District Tariff.

The Port began providing pilotage services on October 1, 2001. The Washington State Board of Pilotage Commissioners has the responsibility to oversee all pilotage activity in the State of Washington and to annually set pilotage tariffs.

As staff considered a tariff recommendation for 2017, shipping projections, pilot boat maintenance requirements, as well as new pilot training and staff expectations through 2017 were considered. The recommendation is for no change to the Grays Harbor Pilotage Tariff except for the Pension Charge which would increase from $463 to $528 resulting in an increase of 0.60%. The Pension Charge is used to fund pension payments to retirees of the former Grays Harbor Pilots Association.

The tariff increase would take effect January 1, 2017 if adopted by the Washington State Board of Pilotage Commissioners.

Motion to authorize the Executive Director to recommend amendments to the Grays Harbor Pilotage Tariff through Resolution No. 2907 for consideration by the Washington State Board of Pilotage Commissioners was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

RECESS: 5 minute break, session resumed at 9:55 a.m.

WORKSHOP
2nd Quarter Port Financial Review
Mary Nelson reported on some changes to budget projections based on new information. There is a positive outlook for 4th quarter as revenues have improved slightly since the beginning of 2016. The Port is in better shape for projections than we were at the end of March.

Commissioner Thompson thanked Mary Nelson’s team for a great job of getting the information out and he is also appreciative of the projections.

Ms. Nelson credited managers for conserving cash and prioritization of projects which has allowed more financial stability.

Public Comment:
No public comment

NEW BUSINESS:
Gary Nelson went over dates for upcoming events.
• August 10 – XNG Grand Opening at Satsop Business Park
• August 18 - Pilotage meeting, Seattle
• August 26 – PNWA Regulatory Workshop – Randy Lewis will attend
• October 4 - Budget Workshop/Strategic Workshop: Managing the New Normal

Commissioner Thompson mentioned that both he and Commissioner Pinnick attended the WPPA Commissioners Seminar the first week of August. This meeting is held every other year. Both felt the meeting was very productive and well put together; a good use of time and updating required certifications.

There being no further business to come before the Commission, the Regular Meeting recessed at 10:25 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 thirty-five minutes.

The Executive Session ended at 11:00 a.m., and the Regular Meeting adjourned at that time.