Port of Grays Harbor

Commission Meeting

September 12, 2017

The Port of Grays Harbor Commission Meeting for September 12, 2017, was called to order at 9:01 a.m.

Randy Lewis, Director of Environmental & Engineering Services 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
Randy Lewis - Director of Environmental & Engineering Services
Mike Johnson - Contract Manager
Molly Bold - Westport Business Manager
Alissa Shay - Manager of Business Development
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Operations Manager
Lisa Benn - Accounting Manager
Keya Bernhardt - Communications & Administrative Coordinator

VISITORS
Dru Garson - GGH
Billy Silver - ILWU Local #24
Mike Brown - ILWU Local #24
Bob Esposito - Citizen
Rob Crawford - ILWU Local #24
Ken Smith - BHP
Shelli Hopsecger - Coast Controls & Automation, Inc.
David Cox - ILWU Local #24
Linda Orgel - CCH
Ole Mackey - Port Machine Works
Terry Nielson - CBFTF
William Carossimo - ILWU Local #24
David Haviland - Jodesha Broadcasting
Vicki Cummings - GHCOG
Leland Godfrey - ILWU #24
Ken Housden - ILWU #24
Season Oltmann - American Lung Association
Randy Ross - GH County Commissioner
Brian Cole - Building Communities Strategies Planning
Brian Mayo - Reach the Beach
Sylvia Dickenson - Our Aberdeen
Ross Hubber - Reach the Beach

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of August 8, 2017 Meeting as recorded in the Minutes Book No. 20 on pages 134 through 140 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued August 18, 2017 and September 5, 2017, ACH/Wire Transfers No. 99900901 through and including No. 99900913, and General Disbursement Vouchers No. 95038 through and including No. 95245 for payment in the amount of $2,468,624.12.

REPORTS:
County-Wide Economic Development Planning
GH County Commissioner Randy Ross introduced Brian Cole, who spoke about the development of a consolidated County-Wide Economic Development Strategy. Mr. Cole’s company, Building Communities Strategies Planning, has been engaged by GH County and Greater Grays Harbor Inc. for the county-wide plan. The initial plan consists of the three major urban areas in Grays Harbor County: Aberdeen, Cosmopolis, and Hoquiam. The project will expand the plan throughout the entire County after the first phase. The purpose is to have a comprehensive plan in place to compete for State and Federal funding. Commissioner Ross requested the Port’s financial support for this project in conjunction with other government agencies within Grays Harbor.

Terminal 3 Dry Bulk Opportunity
Kayla Dunlap introduced Ken Smith, Manager of Cooperate Affairs for BHP Billiton. Mr. Smith reported on BHP’s plans to expand their commodities to include Potash (Potassium Chloride). BHP’s plan may include the Port of Grays Harbor as a location for their overseas exports. Mr. Smith announced BHP will be hosting an open house at Hoquiam High School Commons, 501 W Emerson Avenue, Hoquiam, WA on Thursday, September 14th, from 5pm-7pm. Gary Nelson asked how long would it take to get an export operation up and running. Mr. Smith responded that construction will take 4-5 years and it will be 7-10 years to reach full capacity at the export facility.

Service Agreements for 2018
Mary Nelson 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 2017. Staff continues to work to attract new businesses to the area and retain the businesses that are currently here. The tourism website for the GGH is almost completed, and has numerous tools for individuals to use and access local businesses. 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 2017 and looks forward to continued progress in our business community.

Vicki Cummings of Grays Harbor Council of Governments (COG) provided a power point presentation on various regional plans involving water & fire department mapping, parks and recreation, and data analysis. The COG also works diligently to be sure all of these transportation and recreation plans are properly designated by the State so they will qualify for funding when money becomes available. The COG 2018 plan includes Community-Wide Brownfields Assessment Project (Aberdeen, Hoquiam, and Cosmopolis), and the East Aberdeen Mobility Project $300,000 pre-engineering study.

Terry Nielsen of the Chehalis Basin Fisheries Task Force (CBFTF) provided a power point presentation on the 2016 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.

Upcoming Friends Landing & Westport Events: Reach the Beach & Friends Landing Fun Run & Walk

Friends Landing Fun Run & Walk
Alissa Shay reported on the Inaugural Friends Landing Fun Run & Walk scheduled for September 30th. The 5k run along Katon Rd. and 1.7 mile walk around Lake Quigg are in conjunction with Montesano’s Fish & Brew Fest. There is no cost for entering the event; donations will be accepted for the Friends Landing playground equipment replacement.

Reach the Beach
Molly Bold introduced Ross Hubber & Brian Mayo of The American Lung Association and the Reach the Beach Organization. The Reach the Beach event is set for September 30th starting in Lacey and ending in Westport. This Inaugural Reach the Beach event will have 900-1000 participants. This is a fundraising event for the American Lung Association.

Lower Satsop Project Update
Alissa Shay reported on the Lower Satsop project. She recently met with all parties involved in the project. GH County has been determined to be the leader of the project and will be coordinating all the affected stakeholders. Fish and Wildlife has completed permitting. However, funding is tied into the State’s Capital Budget, so the project is currently on hold. In the meantime, the Port has hired a consultant to develop a water system plan. The purpose is to protect the Port’s water resources. Alissa stated she would keep the commission posted as time goes on.

Friends Landing Policies & Rates
Alissa Shay reported on the new Friends Landing reservation system called Bonfire Registration software. Changes were made to the Friends Landing website rates and policies due to the new registration software. With this software, all reservations must be paid in full. If a reservation is canceled 3 days prior to reservation, there will be a full refund. Any reservation canceled less than 3 days prior to the reservation start will result in the retention of one night’s fee.

Public Information Report
Kayla Dunlap reported that the Legislature still has not passed a State Capital Budget; potential agreement could be by the beginning of next month.

Kayla Dunlap reported that the Grays Harbor County Commissioners approved the Economic Development Fund Advisory (.09) Committee’s recommendation for the 2018 Economic Development Grant Award to fund the Westport Marina Dredging project at $300,000.

The Port participated in the House Democratic Caucus tour located at the Log Pavilion. The Port provided a bus tour to about 30 participants of the marine terminals, followed by a water-side tour.

The Senate Law & Justice Committee will be holding their meeting at the Port’s offices on September 13th at 1:30 p.m.

The following dates are planned for City Council outreach presentations:
• Cosmopolis September 20 @ 7pm
• Hoquiam September 25 @ 7pm
• GH PUD October 16 @ 3:30pm

Vessel Activity
Leonard Barnes reported for August 2017 that the Port had calls from nine deep water vessels and one barge, which resulted in 98,465 MT of cargo being handled. Year-to-date, the Port has handled 68 ships, 6 barges and 1.3 million MT of cargo.

Public Comment:
Sylvia Dickenson, Mural Chairperson of Our Aberdeen requested continued support for the current projects, both historic and contemporary which invest in the community, including a plan for one more mural. She provided a letter addressed to the Port.

Linda Orgel of Aberdeen read a statement on behalf of Arnie Martin of Hoquiam. Mr. Martin suggests the Port modify current Contanda and REG leases to eliminate petroleum in the verbiage.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Leonard Barnes reported on a request for the Port to enter into Lease Agreement No. 1148 with Westport Seafood, Inc., for 15,000 sq. ft. of bare land on Lamb St. in Westport for storage of crab pots, fishing equipment, and vehicles.

Motion to approve Lease Agreement No. 1148 with Westport Seafood, Inc. was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 2.
Leonard Barnes requested approval of Lease No. 1149 with Ocean Gold Seafood, Inc. This lease agreement replaces expiring Lease No. 297 for 22,651.20 sq. ft. of land along Nyhus St. in Westport. The new lease terms match the terms of other Ocean Gold Seafood leases.

Motion to approve Lease Agreement No. 1149 with Ocean Gold Seafood Inc. was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 3.
Leonard Barnes requested approval of new Rental Agreement No. 1150 with United Road Service, Inc. The agreement is for 225 sq. ft. of office space in the “Rectangular Building” on East Terminal Way.

Motion to approve Rental Agreement No. 1150 with United Road Service, Inc., was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0

Resolution No. 2932
Mary Nelson presented, for Commission consideration, Resolution No. 2932, authorizing a Special Meeting of the Port of Grays Harbor Commissioners for a Budget Workshop, October 6, 2017.

Motion to adopt Resolution No. 2932: Scheduling a Special Meeting of the Port Commission for Friday, October 6th, 2017 at 1:00 p.m. was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Resolution No. 2933
Mary Nelson presented Resolution No. 2933, appointing the Executive Director or the Director of Finance and Administration as the responsible Port official to designate certain capital expenditures to be reimbursed from future bond proceeds. Proper reimbursement certification of qualifying projects will strategically maximize the Port’s flexibility and ability to secure the lowest cost financing possible.

Motion to adopt Resolution No. 2933: Appointing the Executive Director or the Director of Finance and Administration as the responsible Port official to designate certain capital expenditures to be reimbursed from future bond proceeds, was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Visitors/Public Comment:
None

Regular meeting was recessed at 11:27 a.m. for a short break.

Regular meeting reconvened at 11:35 a.m.

The Port’s new employee, Keya Bernhardt was introduced to the Commission. Ms. Bernhardt will be the Port’s Communication and Administrative Coordinator, working with Executive staff and Commissioners.

1. WORKSHOP: 2017 Strategic Planning Wrap up
Shelli Hopsecger led discussion regarding the strategic planning that the Port has been accomplishing for its various lines of business. Are the strategies working? Are the policies that have been developed in these strategic sessions working?

The priorities for the Port include Investment, Jobs, and Community. The Port continues to seek and develop partnerships that result in:
• Increased private investment within the Grays Harbor community
• Job retention and creation in diverse industries
• Utilization of public infrastructure thereby creating additional opportunities for economic stability and growth.

Throughout the strategic workshops over the last year, it has become apparent that the business strategies and decision making criteria that the Commission and staff have in place need very little updating. The focus on port-wide goals of customer service and private investment, fiscal responsibility, assets protection, utilization and acquisition, public access and safety, and environmental stewardship continue to serve the Port well.

The Port of Grays Harbor measures our success by the success of our customers and includes:
• Investment in public and private infrastructure that sustains and grows the economy
• Jobs retained and created, level of pay and benefits
• Environmental stewardship and fiscal responsibility
• Return on public tax dollars to private economic activity created

Short-term and long-term objectives were discussed as well as future strategic planning workshops to continue to create sustainable growth into the future.

NEW BUSINESS:
Gary Nelson said that Leonard Barnes had received a request from the Montesano Mayor, Vini Samuel, for a letter of support from the Port for the purposed Fleet Park Restroom.

Motion for Commissioner Thompson to sign a letter of support for the Fleet Park Restroom was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Mr. Nelson noted future meeting and events:
• September 13-Senate Law & Justice Committee meeting at PGH
• September 13-Staff and tenant appreciation lunch at PGH
• September 14-Potash exports and Grays Harbor: BHP hosts open house
• September 15-Showcase GH - East County

There being no further business to come before the Commission, the Regular Meeting recessed at 12:04 p.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.