Port of Grays Harbor

Commission Meeting

October 10, 2017

The Port of Grays Harbor Commission Meeting for October 10, 2017 was called to order at 9:01 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
Molly Bold - Westport Business Manager
Alissa Shay - Manager of Business Development
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Operations Manager
Lisa Benn - Accounting Manager
Keya Bernhardt - Communications & Administrative Coordinator

VISITORS
Bob Esposito - Citizen
David Haviland - Jodesha Broadcasting
Dave Ward - Grays Harbor PUD
Ian Cope - Grays Harbor PUD
Steve Schmitz - KPFF Consulting Engineers
Linda Orgel - CCH
Cindy Taylor - Rainer Comet
Ron Pinnick - Vision 2020

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 September 12, 2017, Meeting as recorded in the Minutes Book No. 20 on pages 141 through 149 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued September 20, 2017 and October 5, 2017, ACH/Wire Transfers No. 99900914 through and including No. 99900923, and General Disbursement Vouchers No. 95038 through and including No. 95471 for payment in the amount of $1,805,264.31.

REPORTS:
2018 Service Agreements and Memberships
Mary Nelson introduced Ron Pinnick from Vision 2020. Vision 2020 is a shared community vision for the future. Mr. Pinnick described the implementation of the Museum Passport program. Mr. Pinnick thanked the port for their continued support of Vision 2020 and requested continued support from the Port in 2018.

Grays Harbor PUD Annual Outreach
Kayla Dunlap introduced Ian Cope and David Ward of Grays Harbor PUD. Mr. Cope thanked Kayla for her help keeping the lines of communication open. Mr. Cope reported that the Grays Harbor PUD serves all of Grays Harbor County which consists of over 41,000 customers. Currently, there are over 1800 miles of distribution and transmission lines, with over 30,000 poles with an average age of 30 years. The PUD has three elected Commissioners, who serve six-year staggered terms from three districts.

Mr. Ward reported that the PUD’s reliability soared in 2016. Their outages went down from 303,000 to 171,000, which was 19% under the five-year average. They also completed the first four years of the vegetation management cycle.

The PUD has worked with Sierra Pacific Ind. to renegotiate the contract for surplus energy from combustion turbines, saving utility $13.7 million over five years. The agreement is the first step in “Bridge to 2022”, when several expensive long-term power contracts expire.

They continue to work with our 19th and 24th Legislative District partners for Capital Budget funding, and to lessen the impact of I-937 on PUD customers. They have teamed with other utilities to support HR3144 and FCRPS.

The PUD goals for 2018 include: focusing on core utility business and efficiency, continuing conversation on the value of clean energy and benefits of vehicle electrification, and continuing work to improve distribution and transmission system reliability.

Satsop Business Park Water System Plan
Alissa Shay introduced Steve Schmitz of KPFF Consulting Engineers. Steve presented on the Satsop Business Park Water System Capital Improvement Plan.

Mr. Schmitz reported on the current erosion assessment located at the Keys Rd. well site. The erosion distance changed from 1991 to 2017 from 685 ft. from the well to 20 ft. from the well. Mr. Schmitz presented to the commissioners three alternative corrective methods.

The first alternative method would replace the Ranney well connection, which would include limited permitting, lowest costs, seasonal limitations, and no water right impacts. The second alternative method would entail a well relocation, which would include changing water rights, groundwater influence, and erosion and flooding potential. This method would include removal of the pump house, maintenance of revetment, and abandonment of transmission main. The third alternative method would include bank stabilization, which would include permitting, high costs, and erosion and flooding potential. Mr. Schmitz reported that the well pumps also needed to be upgraded to boost pressure to the pumps, and for higher efficiencies.

Mr. Schmitz reported on the Haul Rd. erosion assessment. The Haul Rd. has eroded from 1991 to 2017 from 120 ft. to 30 feet from the road. He discussed short-term and long-term plans. The short-term plan consists of planting live willow stakes and native riparian seed mix to stabilize the bank, and the long-term management consists of the following options; rootwad and boulder revetment, man-made log jams, dolosse and dolos units combined with timber, and sheet piling.

Pilot Boat Annual Maintenance
Mike Johnson presented on the 2017 Pilot Boat “Chehalis” maintenance project. The project has been completed and work performed this year on the boat included rebuilding the engine, complete with a new exhaust and an engine pre-lube pump. The work was performed by Westport Diesel Repair Service.

Work on the hull at The Shipyard LLC included sandblasting and painting the entire hull above and below the waterline.

Rudder and wheel work included checking the propeller for damage plus installing new shaft bearings and packing. Respacing the forward bumpers required some modifications after they were reinstalled which added to additional time spent.

Jet Array Maintenance Update
Seth Taylor reported on the Jet Array Maintenance. The project included sandblasting, painting and improving support on the current structure. The entire project took a month and a half resulting in 10 years extended life on the structure.

Contract 1914 Conveyance Maintenance, Repair, and Services
Mike Johnson reported on Contract 1914 Conveyance Maintenance, Repair, and Services. The Port has ten conveyance units (elevators) currently in use. These machines are required to be inspected on a regular basis as outlined by the Department of Labor and Industries. The Port solicited bids from four companies requesting annual pricing for all Port units.

The contract amount is within the director’s authority as outlined in the Port of Grays Harbor Resolution No. 2341 and does not require commission action. The contract has been awarded to Eltec Systems LLC. This contract is included in the Port’s operating budget.

Public Information Report
Kayla Dunlap reported that around 90 people attended BHP’s Open House last month. BHP representatives, their consultants, representatives from PSAP and Vicki Cummings of the GHCOG managed stations around the room to answer questions. Many written and verbal comments, questions, and concerns were received that evening, BHP is working to develop responses to each of them.

The following dates are planned for City Council outreach presentations:
• Grays Harbor County October 30 @ 2 pm
• Grays Harbor PUD November 20@ 3:30 pm

As part of the Harvest Tour, a group of buyers from Indonesia and China will be touring the Port on October 12, 2017. This will be the last scheduled tour of the year.

Vessel Activity
Leonard Barnes reported for September 2017 that the Port had calls from eight deepwater vessels and one barge, which resulted in 135,350 MT of cargo being handled. Year-to-date, the Port has handled 76 ships, 7 barges and 1.4 million MT of cargo.

Public Comment:
No Comment

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Johnson requested motion to Authorize the Executive Director to Proceed with Contract No. 1915 Float 15 F/V Seamaster Damage Repairs.

Motion to authorize the Executive Director to proceed with Port of Grays Harbor Contract No. 1915 Float 15 F/V Seamaster Damage Repair was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 2.
Alissa Shay requested Authorization to Proceed with Lease 2017-L392 with Department of Enterprise Services acting on behalf of Washington State Investment Board.

Motion to approve the Authorization to Proceed with Lease 2017-L392 with Department of Enterprise Services acting on behalf of the Washington State Investment Board was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 3.
Mary Nelson presented on the 2018 Preliminary Budget. A review of the budget was made and books were available to the public. The budget reflects input from customers regarding their business plans and market expectations for 2018, as well as a review of maintenance needs and personnel requirements to support the Port’s current activity levels.

Mary Nelson reported that the property tax levy has been included in the budget at an amount of $2,495,000 which is an increase of 1% over the prior year. The proposed property tax would be used solely for investment in Port infrastructure, and be a key resource to leverage private investment in Port facilities Executive Director, Gary Nelson, recommended including the Port’s banked levy capacity in the 2018 levy to meet the capital funding needs not addressed by the State Capital Budget which is yet to be passed. In particular the dredging of the Westport Marina and upgrades to the 28th Street Boat Launch.

Staff recommended that the Port Commission accept the 2018 Preliminary Budget as presented by staff, and a public hearing on the 2018 budget be scheduled for November 14, 2017, during the Port Commission’s regular meeting. Motion was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution No. 2934
Mike Johnson presented for Commission consideration, Resolution No. 2934, authorizing Acceptance of Contract No. 1877 Marina Improvements Phase III (Bankline and Fencing).

Motion to adopt Resolution No. 2934: Acceptance of Contract No. 1877 Marina Improvements Phase III (Bankline and Fencing) was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Visitors/Public Comment:
None

NEW BUSINESS:
Mr. Nelson noted future meeting and events:
• October 12th - Harvest Tour
• October 17th - Harbor Safety Meeting
• October 18th - 19th –PNWA Annual Convention, Portland, Oregon
• October 20th - Greater Grays Harbor Inc. Annual Leadership Convention

There being no further business to come before the Commission, the Regular Meeting recessed at 11:37 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 1:30 p.m. and the Regular Meeting adjourned at that time.