Port Angeles City Council matches port's $150,000 for harbor agency's startup
By Paige Dickerson, Peninsula Daily News
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The authority, created by the city and Port of Port Angeles, wants to acquire the Rayonier pulp mill site, oversee and hopefully speed up its cleanup and eventually market the property.
Council members Karen Rogers, Don Perry and Dan Di Guilio and Mayor Gary Braun voted for the loan, while Cherie Kidd and Deputy Mayor Betsy Wharton voted against it.
Council member Larry Williams was absent.
Both Wharton and Kidd said they supported the authority's goals — but needed more time to go over the loan agreement.
Council members had received the loan papers only minutes before the meeting started, and Wharton and Kidd were vocal about wanting to review the contract in more depth before approving it.
There were also concerns voiced about whether the city would have any liability for the site cleanup. City Attorney Bill Bloor said the loan documents had language protecting the city.
Wharton said she was voting no because she wanted time "to address any questions. Caution is high because we want to get this right."
"This is a flawed process," said Kidd, who added, "I need time to thoroughly look at this [loan documents].
"I can't do justice to you, or the people, without the time to look at it."
The loan documents had been prepared by the city staff, not Harbor-Works, Wharton pointed out.
The public development authority was granted a $150,000 loan from the Port of Port Angeles last week.
Revenues from sale of the mill site, which is still owned by Rayonier, hopefully will pay back the $300,000 in loans, said Orville Campbell, chairman of the Harbor-Works five-member board that was formed in June.
Rogers moved to approve the city's $150,000 loan. Perry seconded the motion.
When Di Guilio voted with them to approve it, Braun said that he had intended to vote against it — so he could have time to study it further —but that he would instead approve it, breaking what would otherwise have been a 3-3 deadlock.
"I will vote for it because we want it to be moving on, but I am voting with caution," Braun said.
'Smallest beginning'
"This money has already been budgeted this year, and does not come from the general fund," City Manager Mark Madsen, said before the vote on the $150,000.
"It comes from the economic development fund."
Said Rogers in recommending a yes vote: "This is just the smallest beginning steps."
"I have confidence that with all the attorneys looking at this, and I'm willing to take that step tonight."
Perry said he had concerns, but that the agreement looked standard to him, and that he would allow it to move forward with the understanding that providing items to the City Council not become a habit for city staff and Harbor-Works.
Council members complained they were rushed to vote on forming the public development authority in May and had little time to study its documents.
Harbor-Works would work Rayonier, the state Department of Ecology and the Lower Elwha Klallam tribe, which are the three parties supervising the cleanup of the 75-acre mill site. The cleanup began in 2000.
The mill site — which includes a buried Klallam village on its eastern half — is contaminated with pockets of PCBs, dioxins, arsenic, cadmium, mercury, lead and other hazardous contaminants left by a pulp mill which operated for 68 years before closing on March 1, 1997.
The U.S. Environmental Protection Agency in 2000 called the Rayonier site "moderately contaminated," perhaps 2 or 3 on a scale of 10.
Harbor-Works' operating budget for about $195,000 through December was developed by its interim manager, Jim Haguewood.
Haguewood, who is being paid $8,000 for two months work, is also the director of the Clallam County Business Incubator and the former head of the Clallam County Economic Development Council.
The salary for a permanent executive director — who is yet to be selected — was budgeted at $12,000 per month, but the exact salary for that job hasn't been determined, Campbell said.
Citizens divided
The City Council's decision came after a 40-minute public comment period.
"We feel that the creation of the PDA was a giant leap to getting started in cleaning up the Rayonier site," said Craig Johnson, president of the Port Angeles Business Association.
"Make the leadership decision by funding the PDA."
Edna Petersen, former council member and downtown business owner, also encouraged the group to approve the motion.
"It will bring positive economic development," she said.
Port Angeles resident Ed Chadd asked that the council consider postponing the decision while considering other options.
"It seems that the city and the port did not consult with the Lower Elwha Klallam tribe, and they are a significant player in anything having to do with the harbor," Chadd said.
"I'm also concerned because it seems that a whole possibility of cleaning up the whole site and restoring the natural shoreline was cut off," Chadd said.
Suzanne Anderson, a Carlsborg resident, urged the council to financially support the entity as a "step forward for the city and for your citizens."
Dave Neupert, representing the Port Angeles Regional Chamber of Commerce, also spoke in favor of the funding.
"You voted to enable the creation of the PDA recognizing the vital importance within Port Angeles and Clallam County," he said.
"The funding is entirely consistent with the council's vote to establish the authority."
Put off funding
Shirley Nixon, a Port Angeles attorney, said she wanted the city to put off any funding until the city could clearly establish that the PDA was created on solid ground.
"I believe the city and the port's actions have passed a cloud over the legitimacy of that entity," she said.
Norma Turner, a long time Port Angeles community activist, urged the city to vote some funding, but only enough to get the PDA through the end of the year, while the city studies the necessity of the authority.
"I think we must be inclusive," she said.
"We can work together. The question is whether that 'we' will be inclusive, or the royal we."
Kevin Russell, president of the North Peninsula Building Association, spoke in favor of the funding.
"As your neighbors, your friends and your associates, we hope you will take this opportunity to get it cleaned up once and for all," he said.
In addition to Campbell, Harbor-Works board members are Howard Ruddell, owner of Ruddell Auto Mall; Karen McCormick, First Federal president and CEO; Jerry Hendricks, former Port of Port Angeles executive director; and retired attorney Bart Irwin.
Ruddell and Hendricks were at the City Council meeting and answered questions from the council members.
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Reporter Paige Dickerson can be reached at 360-417-3535 or paige.dickerson@peninsuladailynews.com.
Last modified: August 19. 2008 9:00PM