Port of Grays Harbor

Commission Meeting

November 14, 2017

The Port of Grays Harbor Commission Meeting for November 14, 2017 was called to order at 9:01 a.m.

Mary Nelson, Director of Finance & Administration 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
Shannon Anderson - Business & Trade Development Asst.
Kayla Dunlap - Public Affairs Manager
Seth Taylor - Marine Terminals Terminals
Lisa Benn - Accounting Manager
Keya Bernhardt - Communications & Administrative Coordinator

VISITORS
Todd Bates - Grays Harbor College
Arnie Martin - GHAS
Linda Orgel - CCH
Wil Schmauss - HALA
Marc Izatt - Citizen
Roman Tenkin - KET Invest
Matt Goodwin - West Coast Portables

Items discussed and action taken where required are as follows:

MINUTES:
1. By motion made by Commissioner Pinnick, seconded by Commissioner Caldwell and unanimously approved, the Commission adopted the Minutes of October 6, 2017, Special Commissions Meeting as recorded in the Minutes Book No. 20 on pages 150 through 152 inclusive.

2. By motion made by Commissioner Caldwell, seconded by Commissioner Pinnick and unanimously approved, the Commission adopted the Minutes of October 10, 2017, Regular Commissions Meeting as recorded in the Minutes Book No. 20 on pages 153 through 159 inclusive.

VOUCHERS:
1. By motion made by Commissioner Pinnick and seconded by Commissioner Caldwell, the Commission unanimously approved for payment those Payroll Vouchers issued October 20, 2017 and November 3, 2017, ACH/Wire Transfers No. 99900924 through and including No. 99900947, and General Disbursement Vouchers No. 95472 through and including No. 95782 for payment in the amount of $3,094,361.62.

REPORTS:
Final Forest Product Sales Report, Contract No. 1904 Fuller Forks Timber Sale
Mike Johnson reported on Contract No. 1904 Fuller Forks Timber Sale. Mike reported the harvest and hauling of approximately 255 MBF of saw logs on approximately 8 acres which was awarded to Lewis River Logging on August 8, 2017. Logging included cutting, yarding, processing, sorting, loading, and hauling to designated destinations. Logging operations are complete for this contract.

Mike Johnson introduced Todd Bates, Resource Manager/Forestry Instructor of Grays Harbor College. Mr. Bates reported on another successful year for the Fuller Forks Timber sales with $162,000 in gross revenue and $124,000 in net revenue. He suggested for the Ports consideration an updated version of the 2008 Forestry plan for 2018. Mr. Bates appreciates the continued support of the Port and looks forward to another successful year in 2018.

Westport Marina Summer Activity Report
Moly Bold reported on the Westport Marina summer activity report. Currently the marina has 3 permanent office staff, 1 full-time office summer staff, 2.5 permanent maintenance staff, and 4 full-time summer maintenance staff. The main goal of the marina is to have a safe, fun, and productive summer serving the public with a first class facility.

Recreation, fishing and tourism were at 80% of last year’s numbers. There were over 4,000 launches during the 2017 fishing season with a successful Charterboat Association Salmon Derby, and Washington Tuna Classic. Molly reported that 2017 is on track to land the largest volume of seafood in Westport history. According to the NOAA 2016 report, Westport had 108 Million pounds landed and was the ranked 10th in the Nation.

The 2018 projects for the marina include; 2018 strategic planning for the Marina District & Boat Basin, street and trees revitalization, signage replacement, improving Wi-Fi, and float 9 restrooms/showers.

Data Center Opportunities for the Port of Grays Harbor
Alissa Shay reported on new data center opportunities for the Satsop Business Park. The Satsop Business Park has long been considered as a potential location for data centers due to the unique infrastructure located at the park. Recently, new data center technologies have come to our attention as a viable option for locating at the Satsop Business Park. One of the data center opportunities includes Blockchain technology. Blockchain is a form of data mining technology consisting of a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. When a cryptocurrency transaction takes place a unique data record is created. Only miners can confirm the cryptocurrency transactions and are paid in cryptocurrency for their mining work.

Alissa Shay introduced Roman Tenkin of KET Invest. Mr. Tenkin presented on the opportunity of leasing space at the Satop Business Park for a location of a blockchain technology center. This company plans to use the unique combination of telecommunications bandwidth, secure facility, and affordable power capacity to establish a data center that participates in the growing cryptocurrency industry. Mr. Tenkin and KET Invest have been working with the Grays Harbor PUD to find the most suitable location within the Satsop Park for the data center.

Commissioner Caldwell asked how many people would be employed at the data center. Mr. Tenkin responded with 20 to 30 employees.

Commissioner Pinnick asked what the timeline was for the project to be up and running. Mr. Tenkin responded they want to be up and running by March or April.

Public Information Report
Kayla Dunlap reported that there is no update on the Capital Budget. The democrats have gained control of the Senate in last week’s election so there is speculation as to how and when the Capital Budget will be addressed.

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

Iowa Corn will be bringing a group of 27 to tour the Port on November 15th. They will also be doing a tour of REG later that day.

Vessel Activity
Leonard Barnes reported for October 2017 that the Port had calls from ten deepwater vessels and one barge, which resulted in 238,533 MT of cargo being handled. Year-to-date, the Port has handled 86 ships, 8 barges and 1.7 million MT of cargo.

Public Comment:
Marc Izatt of Hoquiam, WA, commented on the portable toilets located at the 28th street boat launch. Mr. Izatt suggested placing supports on the portable toilets to prevent them from blowing over and leaking into the water system.

Matt Goodwin of West Coast Portables commented that he and his company make sure to take care of all of the portable toilet incidents that occur on Port property as soon as possible. He put stakes down for each of the porta potties to make sure they do not fly away in future storms.

ACTION/RESOLUTION ITEMS:
Action Item No. 1
Mike Johnson requested motion to Authorize the Executive Director to Proceed on the Port of Grays Harbor Contracts 1923, 1924, 1925, and 1927.

Motion to authorize Contract No. 1923 – Portable Toilet Supply and Service was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Motion to authorize Contract No. 1924 – Inspection, Testing, and Certification of Cranes was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Motion to authorize Contract No. 1925 – Bowerman Field/IDD-1 Mowing was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Motion to authorize Contract No. 1927 – Janitorial Services was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 2.
Mike Johnson requested Authorization to Call for Bids on Contract No. 1836 – 28th Street Boat Launch Improvements – Phase II

Motion to approve the Authorization to Call for Bids on Contract No. 1836 – 28th Street Boat Launch Improvements – Phase II was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Action Item No. 3.
Leonard Barnes requested motion to Authorize the Executive Director to amend Lease Agreement No. 968 with Westport Seafood, Inc.

Request is made for Port staff to make an amendment to Lease Agreement No. 968 with Westport Seafood Inc. Staff would like to amend Paragraph 3 “Option to Renew”. The amendment would add three more five year options, which will extend their expiration date to June 30, 2033.

Motion to Authorize the Executive Director to amend Lease Agreement No. 968 with Westport Seafood, Inc., was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Action Item No. 4.
Art Blauvelt requested motion for the Emergency Declaration for Removal and Replacement of Structural Beams in Warehouse A.

Motion to Authorize Emergency Declaration for Removal and Replacement of Structural Beams in Warehouse A was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Public Hearing - 2018 Budget
Mary Nelson reported on the public hearing being held today in regards to the 2018 Port budget. This was advertised in the paper to the public prior to the meeting. Ms. Nelson mentioned that the budget had been available to the public in a booklet at the last meeting as well as here today.

The proposed 2018 budget includes operating revenues totaling $36 million including $28 million from operations, and $4.8 million in grants for financing capital improvement projects. Budgeted expenses total $38 million, including $10 million in capital projects, and $2.5 million in debt service payments. The Port’s cash balance is expected to be $18 million at the end of 2018.

Public Comment:
No public comment

The Public Hearing was closed at 10:52 a.m. and the Regular Commission Meeting reconvened at that time.

Resolution No. 2935
Mary Nelson presented for Commission consideration, Resolution No. 2935, authorizing Adoption of 2017- Property Tax Levy for Collection in 2018.

Motion to adopt Resolution No. 2935: 2017 - Property Tax Levy for Collection in 2018 was made by Commissioner Pinnick and seconded by Commissioner Caldwell. Motion passed with a vote of 3-0.

Resolution No. 2936
Mary Nelson presented for Commission consideration, Resolution No. 2936, authorizing Adoption of 2018 Budget.

Motion to adopt Resolution No. 2936: The Port’s 2018 Budget was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Resolution No. 2937
Alissa Shay presented for Commissions consideration, Resolution No. 2937, authorizing Adopting the Water System Plan for Satsop Business Park.

Motion to adopt Resolution No. 2937: Adopting the Water System Plan for Satsop Business Park was made by Commissioner Caldwell and seconded by Commissioner Pinnick. Motion passed with a vote of 3-0.

Visitors/Public Comment:
None

NEW BUSINESS:
Mr. Nelson noted future meeting and events:
• November 15th – Iowa Corn company tour
• November 15-17 – WPPA Annual Meeting
• November 20th – Staff Workshop (Strategic Planning)
• December 9th – PGH Holiday Party
• December 12th –Commission Meeting

There being no further business to come before the Commission, the Regular Meeting recessed at 11:24 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.