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MembersLetter
Monthly Features Issues Watch In 2008, the Washington State Legislature adopted
legislation designed to improve public contracting for port districts. The legislation (2SHB 3274) directed
the Municipal Research and Services Center (MRSC) to develop guidelines in
cooperation with WPPA for the effective and efficient management of personal
service contracts. The resulting Personal Services Contracting Manual for
Ports is now available at www.washingtonports.org
and www.mrsc.org/Subjects/PubWorks/portspsc.aspx. The legislation mandates that all ports adopt policies
based on these guidelines and must follow those policies by January 1,
2010. Port districts are also required to have any port
employee who will be executing or managing any personal service contracts
complete WPPA provided training to the satisfaction of their port
commission. Training is expected
to begin in July or August and WPPA will announce the dates as soon as they
are set. Labor Tensions Continue at
Canada’s The
contract between Longshore and Warehouse Union (ILWU) Local 514 and the
British Columbia Maritime Employers Association (BCMEA) expired last year,
and a new contract has yet to be agreed to despite continued negotiations
since April. The parties are
currently in the middle of a week-long suspension of talks while they
consider the other’s proposal. The
union has not yet called for a strike, but the prospect of failed
negotiations has caused significant concern at the ports in Vancouver and
Prince Rupert. If ILWU Local 514
was to strike, other locals have said they would join, resulting in a picket
line of more than 5,000 ILWU members, and effectively halting operations at
both ports. The looming prospect
of a strike has reportedly already diverted some container traffic away from
Canada. Battle Persists Over Clean Trucks
Program at Los Angeles and Long Beach Ports The California congressional
delegation has called on the Federal Maritime Commission (FMC) to drop its
lawsuit against the LA/Long Beach Clean Trucks Program. Thirty one Democratic congressional
members from California signed the letter asking the FMC to step aside and
take a more productive approach.
Strong Democratic support of the Clean Trucks Program has prompted
speculation that changes are in store for the three-member FMC board now that
the Obama administration has taken office. The FMC lawsuit is just the latest
in a series of conflicts over efforts at the ports of LA and Long Beach to
reduce truck emissions. The
American Trucking Association filed suit over the ports’ requirement to
ban independent truckers. More information on the Clean
Trucks Program is available at www.portoflosangeles.org/ Port News The Port of Vancouver USA commission
recently approved agreements between the port and the BNSF Railway Company
facilitating the construction of the port’s $137 million West Vancouver
Freight Access project (WVFA). The port will purchase nearly 17
acres of railroad right-of-way from BNSF for $3.1 million, and the railroad
will donate more than $6 million of accompanying rail infrastructure to the
port to allow the construction of the port’s preferred rail alignments.
As a part of the deal, the port has agreed to finish construction of the
project by December 31, 2017. “Rail congestion will
prevent us from expanding and it will prevent us from creating jobs,”
said Port Commission Vice President Nancy Baker. “It is so important
that we take this step right now.” The port’s rail project
will generate an estimated 1,969 construction jobs that will put more than
$130 million in local purchases into the area’s economy, according to
an economic impact study done by John Martin & Associates. Grays Harbor Handles First Shipment of Import
Autos The Port of
Grays Harbor welcomed a vessel carrying more than 3,100 brand new Kia
automobiles at the port’s Marine Terminal 4. The terminal
boasts two deep-water berths with paved uplands, warehousing and dockside
rail access. “Grays
Harbor’s strategic location on Washington’s outer coast and our
North American rail connections are a perfect fit for auto movements of this
size,” said Leonard Barnes, Deputy Executive Director of the Port of
Grays Harbor. “Port staff
and our longshore labor force are capable of handling this movement
efficiently and professionally for our customer.” The Pasha Group, which arranged the shipment, has joined the Port of
Grays Harbor in a marketing agreement allowing them a year to study the
feasibility of establishing a large-scale automotive processing facility in
Aberdeen. Port
of Edmonds Executive Chris Keuss has announced his intention to resign
as executive director of the Port of Edmonds, effective May 31. “The
reason for this decision is to start my retirement,” he said, citing
his desire to “spend more time with my grandchildren, work on my home
project list, travel, improve my tennis game and maybe teach a course at the
community college.” Keuss began his work at the Port of Edmonds in
early 1998 as deputy director. Four years later he became executive director,
the port’s top job. He has been responsible for all aspects of port
planning, administration and operations ever since. He has become recognized
as a key community leader in Edmonds. The Commission is currently drafting job
requirements and specific qualities they will be seeking in applicants to
fill the position. Next, they will conduct a West Coast search for candidates
with senior management skills and experience. Port
of Olympia Hires White The Port of Olympia announced the appointment of
Kathleen White as their new Communications Manager effective January 15. White served most recently as Senior
Communications Consultant with the Washington State Treasurer. Prior to that,
she worked in communications for the State of Washington Departments of
Natural Resources, Revenue, Information Services and Personnel. |
Initiative 1031 Seeks
to Limit Revenue Growth Limiting property taxes remains on the agenda of
anti-government activist Tim Eyman. Washington State’s lack of an income tax
forces it to rely more than other states on revenue collected from property
taxes, meaning higher property tax rates than most other states in the
nation. Add to that the rise of
home values over the past few years (recent declines aside), and it’s
no wonder that Eyman has kept his focus on property taxes: all signs point to
Washington taxpayers being unhappy with current rates. The latest proposal, Initiative 1031, would cap
property taxes by limiting the growth of state, county, and city general fund
revenues. The measure would not affect port districts, but
it’s too early to tell whether all special districts would be spared. The initiative seeks to limit the growth of
general fund revenues by the rate of inflation, regardless of population
increases or other factors. Any increases in revenue beyond the rate of
inflation would be deposited into separate state, county, or city accounts
which would then be used to fund reductions in the next year’s property
tax payments. In effect, Initiative 1031 proposes a roundabout
solution to rising property taxes: instead of limiting tax rates, it takes
away any room for government budgets to expand, and refunds property owners
the “surplus” monies. The initiative makes exception for
“voter-approved revenues.”
Any budget increases specifically approved by voters would not be
counted towards the overall cap. This is a particularly harsh time to be limiting
the growth of state and local government budgets. A reporter in Olympia pointed out that
Initiative 1031 would lock-in budget cuts resulting from the economic downturn. The base level for future budgets
would always be skewed, reflecting the current drastic cuts due to recently
diminished state and local tax revenues. The full text of the initiative is available on
the Secretary of State’s website at www.secstate.wa.gov/elections/ Budget Woes Dominate
the Legislative Session The 2009 legislative session kicked off on
Monday, January 12. In
odd-numbered years the Legislature convenes for 105 days (versus 60 days in
even-numbered years), with the main purpose of the longer session to allow
lawmakers to write the state’s biennial budget. The task of writing the budget looks to be as difficult
as ever due to a massive shortfall expected to reach $7 billion when the next
economic forecast numbers are due out in early March. The size of the state budget shortfall
– amounting to about 20% of the general fund – dwarfs every
previous fiscal challenge the state has faced. The current economic crisis is the
primary culprit, but Washington State is uniquely vulnerable to economic
downturns because of its reliance on sales tax receipts, especially large-ticket
items such as new automobile purchases and housing sales. Although
there are many new faces around the capital, Washington State’s
political make-up changed very little as a result of the November
election. Democrats have strong
majorities in both the House and Senate, ahead of Republicans 62 to 36 and 31
to 18, respectively. With
Gregoire still in the Governor’s Mansion, Olympia is effectively a
one-party state for the time being. Although partisan majorities make it easier to
pass bills, they don’t make it any easier to find money. That’s the big problem on
legislators’ minds, and it’s likely to shape all policy
conversations moving forward. Staff Assume New Roles
at WPPA Envisioning
a “Legislative Team” supporting Washington Port issues, WPPA
Executive Eric Johnson promoted Ginger Eagle to Assistant Director. She joins
Assistant Director Johan Hellman and Policy Analyst Richard Myers. Ginger has
been with the Association for over three years, and will continue to focus on
economic development issues, in addition to many matters relating to
governance and public works. Your Association staff is currently following a
wide variety of legislative issues that concern ports introduced this
Session. Please refer to our weekly Legislative Report for more in-depth
coverage. WPPA
staffer Kathleen Olson has moved into the role of Multimedia and Outreach
Coordinator. Kathleen has been with WPPA for ten years, joining first as the
Association’s secretary and later being promoted to Systems Support
Administrator. She will continue to be responsible for the
Association’s IT needs, but will also take on responsibility for
publications and media communications. She is looking forward to working with
the WPPA Public Relations Committee members in planning the first legislative
Port Day in Olympia on March 25th. Kathleen will also be working to increase
the use of technology in presenting information to ports with webinars, video
streaming and social networking. The
search for an administrative assistant is currently in process and should be
completed by the end of the month. Port
Employment Opportunities Executive
Director, Port of Edmonds |
January
2009 Upcoming
Events January 12 – April 26 January 23 – February 1 March 25 Knowing the Waters What is the process for a port
marina to auction a tenant’s vessel in order to recoup unpaid moorage
fees? The process by which a port marina
may auction a tenant’s abandoned vessel is governed by RCW §§
53.08.310-320. In order to
enforce these rules, they must be conspicuously posted at the moorage
facility for all vessel owners to read at their leisure. The statute, RCW 53.08.320, begins
with allowable methods for a port to secure vessels that have not paid their
moorage fees. These methods
include securing the vessel with ropes, chains, locks, or even removing the
vessel from the water if needed.
Prior to locking up the boat, however, the port must give notice to
the vessel owner that charges are owed to the port. This gives the owner a chance to pay
or contest the port charges in a legal proceeding. Notice must be sent by registered mail
to the owner at his or her last known address, or if the owner does not have
an address, notice can simply be posted on the vessel once it is
secured. After that point, the
port must continue to attempt to notify the vessel owner of the port charges
due by registered mail. Once the vessel has been secured
either at the dock or on shore, the owner of the vessel may regain possession
by arranging payment to the port and arranging to immediately remove the
vessel from the marina or port property.
After 90 days without payment arrangements being made, a vessel is
presumed to have been abandoned, and the auction procedure may begin. The authorization of a public sale
of the abandoned vessel to the highest bidder must be made by commission
resolution in a public meeting.
The vessel owner needs to be given 20 days notice of the sale by
registered mail and by publication in the local newspaper between ten and 20
days before the auction. The port can require a minimum bid
and/or letter of credit to discourage re-abandonment of the vessel. Once it is sold, the proceeds will
first be used to pay back to port for its moorage and moving charges. If there is any amount left over, the
port must first pay the balance to the vessel owner. But if after one year of diligent
searching the owner cannot be found, the excess funds will be placed in the
derelict vessel removal account established under RCW 79.100.100. If the sale of the vessel was for less
than the port’s charges, the port can assert a claim for the difference
against the vessel owner. If the
port cannot find a buyer for the vessel, title goes to the port. As always, consult with your own counsel for advice on your individual
situations. Save the Date - Legislative Port Day Plan to attend
“Celebrating Washington’s Ports” on March 25 from 10 am to
3 pm on the 3rd Floor of the Legislative Building in Olympia. The
WPPA and its Public Relations Committee will have several displays set up
around the Rotunda showcasing how vital our ports are to the state’s
economy. Please show your support in Olympia by visiting with your legislators
during the event. Washington Climate Change Impacts
The conference, scheduled for February 12 at the Washington
State Convention Center in Seattle, will provide an opportunity to learn more
about the results of the assessment and to discuss implications for
Washington communities and ecosystems. Adapting to climate change and updates
on global climate change science, resources for building adaptive capacity
for climate change, and state-level actions to address climate change will
also be discussed. More information on the conference is
available at:www.cses.washington.edu/cig/ Navigating a Challenging Economy Seattle Northwest Securities invites you to attend their 7th
Annual Municipal Finance Conference. This informational conference will
highlight changes in the municipal marketplace and identify strategies for
financial planning. The one-day conference will be held March 12 at the Bell Harbor
Conference Center in Seattle. More information
can be found online at www.snwsc.com
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