Port of Grays Harbor

Commission Meeting

September 13, 2016

The Port of Grays Harbor Commission Meeting for September 13, 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
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
Mike Johnson - Contract & Project Manager
Leonard Barnes - Deputy Executive Director
Seth Taylor - Marine Terminals Manager
Marisa Yauch - Executive Administrative Assistant
Robin Leraas - Westport Marina Manager
Alissa Shay - Manager of Business Development
Kayla Dunlap - Public Affairs Manager
Chris Hunt - IT Manager

VISITORS
Cindy Taylor - Rainier Connect
Fred Goheen - JSC
Dave Haviland - Jodesha
Ray Brown - GHGOP
Linda Orgel - CCH
Rob Bearden - Mayor of Westport
Vicki Cummings - GHCOG
Terry Tielsen - CBFTF
Dru Garson - GGHI
David Quigg - Vision 2020
Ron Pinnick - Vision 2020
Marc Horton - WPC

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 August 9, 2016 Regular Commission Meeting as recorded in the Minutes Book No. 20 on pages 1 through 8 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Thompson, the Commission unanimously approved for payment those Payroll Vouchers issued August 19, 2016 and September 2, 2016, ACH/Wire Transfers No. 99900733 through and including No. 99900744 and General Disbursement Vouchers No. 92015 through and including No. 92223 for payment in the amount of $2,178,875.60.

REPORTS:
Service Agreements 2017
Mary Nelson introduced this report explaining the history of the Port providing funding to help organizations working on projects for the betterment of Grays Harbor County.

Dru Garson from Greater Grays Harbor Inc. spoke of the many projects they have accomplished or are working on in 2016. They continue to work to attract new businesses to the area and retain the businesses that are currently here. They are working with business owners to determine the struggles of doing business in Grays Harbor County and what is working for local businesses. They hold many local events to help business leaders connect, and for community leaders to work with our local politicians. Mr. Garson is looking for the same level of financial support the Port contributed for 2016 and looks forward to continued progress in our business community.

Vicki Cummings of GHCOG pointed out that much of her work involves behind the scenes planning. She is helping various plans work through engineering and funding needs so they may come to fruition. This team also works diligently to be sure all of these transportation and recreation plans are properly designated by the state so they will qualify for funds when money becomes available. There are many aspects to these types of projects and factors which must be accounted for in order for qualifications to be met.

GHCOG has worked closely with the Port on our recreation lands and facilities plan. They appreciate the Port and this strong partnership allows them to be able to continue their work county wide.

Terry Nielsen of the Chehalis Basin Fisheries Task Force spoke next. She thanked the Port for their continued support on behalf of the board of directors. Funds from Port support last year went to build a much needed car port to protect important vehicles they use for field work. In the past these vehicles were exposed to the elements year round and would experience issues due to exposure.

In 2016 they have been working on many projects including annual trout moves, the egg & carcass project for Coho and various fish passage projects. They also continue the Carlisle Environmental Education program working with high school students to teach many aspects of monitoring and enhancing fish populations. One of their previous students went on to further his education and has now come back to teach the program. They have many projects set up going into 2017. Most of the big culverts that need replacing have been completed, but they will continue to focus on additional fish passage areas that could be improved.

David Quigg of Vision 2020 spoke next on projects they are working on. They recently completed the first phase of the Hidden Coast Scenic Byway Corridor Plan and held a kickoff celebration at Seabrook in May. A further phase of the project may include adding signs at the stop locations with information about the area. They continue to appreciate the many partnerships they have in the community including the Port of Grays Harbor.

Satsop Strategic Planning Update
Alissa Shay reported an update on strategic planning at Satsop Business Park. They have been working to develop partnerships that result in increased private investment, job creation, and utilization of public infrastructure. Planning has been broken into short term (in the next 2 years), and long term (2 years and beyond) objectives. Some of the goals for the park are to protect infrastructure, retain existing customer base, manage fiscal responsibility, and continued business development. A new marketing strategy has included a billboard featuring the tag line “Think Big” since there is so much property and building space available at SBP. Any company looking for space locally would have no trouble finding a large enough space to house their growing business. This park contains the two largest buildings in the county and the Port is actively seeking tenants to lease these and other available locations.

Update on Federal Grant Requirements
Art Blauvelt reported an update to language last reviewed by the Commissioners in fall of 2013. Mr. Blauvelt reported the wording has changed since 2013 to allow more opportunities for public entities to work with companies in the cannabis industry while not putting federal funding at risk. Federal restrictions now apply to the application and acceptance of federal funds specifically used by the project being funded, not to all activities of the Port. Another standard still in place is for Port’s to ensure a drug free environment for employees of the Port. Holding leases for product growers will not jeopardize this requirement, nor will this requirement apply to Port tenants.

There are several Ports in the state that currently hold leases for marijuana growers. The first was Port of Willapa which initiated its first lease in 2013, followed by Port of Shelton, Port of Clarkston and others may be in lease negotiations at this time. Our counterparts at these Ports have been helpful in offering information on how smoothly operations have been with these tenants. They have run into no legal road blocks as it is clear that no use of federal funds will go towards preparation or building improvements for these specific operations.

Commissioner Pinnick asked if there are proposals for retail sales of the products on Satsop grounds. Ms. Shay replied that the zoning laws currently do not allow for this, so changes would need to be completed with the County if this were to be proposed.

Dredging Updates
Randy Lewis reported on the semi-annual maintenance dredging at Terminals 1, 2 & 4 which took place from August 6-10. The Army Corps had to change their dredging dates to accommodate a change in Quinault gill netting dates which are earlier in September this year. The work was completed and 14,815 cy was dredged from Terminal 1, 35,812 cy from Terminal 2 and 13,917 cy from Terminal 3.

The fiscal impact for this project was $1,015,832.24 which came from the 2016 Operations Budget. The next round of dredging is scheduled for January of 2017 and will come out of the 2017 budget.

PSGP FY14 Grant Funding Recap
Mike Johnson reported on the PSGP FY2014 grant funding awarded for security improvements. Improvements to the Marine Terminals included additional radios and a new repeater for better communication, a new guard booth at the entrance to Terminal 2, fencing improvements, lighting improvements and a transit shed at Terminal 4. The Port was granted $248,520 in federal funds and the PGH contribution was $117,097 for these improvements. All of these improvements are now complete.

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

On September 5th the Lady Lilliana, a 77-foot fishing vessel, sank at the Westport Marina docks. First responders were the Coast Guard, DOE and Port Staff which deployed spill response equipment after fuel was seen leaking from the vessel. Staff will continue to coordinate with the owner and those working to raise the vessel for removal.

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 August 2016 the Port handled seven deep water ships and one barge, resulting in 142,169.241 MT of cargo. YTD import/export cargo totals 1,322,018.548 MT and total ship calls are 55 ships and five barges.

The Commissioners commended Mr. Barnes on continued success at the Marine Terminals.

Public Comment:
Commissioner Thompson recognized Rob Bearden, Mayor of Westport, was in attendance at the meeting.

No Public Comment

ACTION ITEMS:
Action Item No. 1
Leonard Barnes reported on a request for Port staff to make an amendment to Lease Agreement No. 1021 with Little Green, LLC, DBA Paneltech. Staff would like to amend paragraph 3, option to renew, to add an additional three successive five-year options.

Paneltech, now Little Green, LLC DBA Paneltech has been a tenant in Warehouse G for 20 years. This amendment would add three five-year options with the final option expiring on August 31, 2031.

Motion to authorize the Executive Director to amend Lease Agreement No. 1021 with Little Green, LLC DBA Paneltech, was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution 2908
Art Blauvelt presented a resolution to schedule a special meeting of the Port Commission on Tuesday, October 4, 2016 beginning at 9:00 a.m. in the Port Commission Chambers.

A budget workshop and strategic planning workshop have both been planned on the agenda. Additional items may also be added prior to the special meeting.

Motion to adopt Resolution 2908: A Resolution of the Port of Grays Harbor to Schedule a Special Meeting of the Port Commission for Tuesday, October 4th, 2016 beginning at 9:00 a.m., was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Public Comment:
No public comment

NEW BUSINESS:
Gary Nelson recognized Jim Walsh, Candidate for Representative of the 19th District, was in attendance.

Mr. Nelson mentioned a regular attendee of our meetings and member of the East County Rotary, Fred Rapp. He is not here today as he is not in good health; please keep him in your thoughts.

•September 13-14 - AAPA Environmental Seminar Vancouver, BC. Gary Nelson attending and presenting.
•September 14 – Staff and tenant appreciation lunch at PGH
•September 15 - Pilotage meeting, Seattle
•September 19 – Northshore levy meeting regarding flooding and coastal erosion
•October 4 - Budget Workshop/Strategic Workshop: Managing the New Normal.
•Public hearing and adoption of 2017 budget will be in November.

There being no further business to come before the Commission, the Regular Meeting recessed at 11:00 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 1:00 p.m. after a 30 minute extension, and the Regular Meeting adjourned at that time.