December 2015 MembersLetter - Washington Public Ports Association

WASHINGTON PUBLIC PORTS ASSOCIATION
MEMBERS LETTER
TESTING OF NEW AIRCRAFT WILL LEAD TO OUTSTANDING
JOB CREATION AT THE PORT OF MOSES LAKE
(360) 943-0760
WWW.WASHINGTONPORTS.ORG
Mitsubishi Aircraft Corporation and AeroTEC,
a Seattle based flight
test engineering company, announced their
partnership in conducting the US flight testing
for the new Mitsubishi
Regional Jet 90s (MRJ
90s) at the 2014 air
show in Farnborough
England. The testing will begin in fall 2016 at the Grant County International Airport in Moses Lake, Washington. Mitsubishi has committed to
bringing three MRJ 90s to the US for a period of at least three years.
To accommodate the project, AeroTEC constructed a new 65,000
square foot, wide body aircraft hangar at the airport. Construction on
the 10.6 million dollar hangar began in October of 2014 and was completed this past fall. The hangar was built on 3.75 acres adjacent to a
newly refurbished ramp and leased from the Port of Moses Lake.
According to Lee Human, President of AeroTEC, Moses Lake was selected as the location for the new facility due to the superior flying weather,
clear airspace, flat topography, and long wide runways. These conditions make Moses Lake an ideal location for flight test operations.
“Moses Lake has become an important part of our company’s future”
said Lee Human. “We are thrilled to be making a significant investment in
Moses Lake with the building of our new hangar at the Grant County International Airport in support of the flight testing for Mitsubishi Aircraft
Corporation.” AeroTEC anticipates having 80 – 100 employees on the
ground during the testing period. The average wage for these jobs will
range from $70,000-$90,000 per year.
The MRJ 90 is a completely new, fuel efficient commercial aircraft being
built in Nagoya, Japan. Over 407 orders for the plane are in place, with a
majority from US airlines.
DECEMBER 2015
Upcoming Events
2016 Legislative Session
Olympia, WA
January 11, 2016
WPPA
MEMBERS LETTER
KNOWING THE WATERS by Frank Chmelik
One executive director asked for a discussion on the ability to use port employees
to install a gate in a chain link fence. Like any lawyer worth his/her salt, I can
expand that question into a whole column. And since it is the time of year when
ports are again considering public works projects, this month’s column is devoted
to public works projects.
What is a “public works project”? RCW 39.04.010(4) provides the definition.
"Public work" means all work, construction, alteration, repair, or improvement
other than ordinary maintenance, executed at the cost of the state or of any
municipality, or which is by law a lien or charge on any property therein. All
public works, including maintenance when performed by contract, must comply
with chapter 39.12 RCW - the Prevailing Wage statute.
Can port districts use their own staff to “self-perform” public works projects? The best answer is “yes”, although there never
has been a court decision on this issue. Many municipal governments (fire districts for example) are not allowed to utilize
their own employees to undertake a public work. But port districts have seemingly been granted authority to use their own
staff in RCW 53.08.120 which, in addition to the normal contracting language, allows port districts to utilize “day labor.”
Moreover RCW 53.08.135 instructs port districts to “determine if any construction project over Forty Thousand Dollars ($40,000)
can be accomplished less expensively by contracting out”, which assumes that port districts can utilize their own staff
subject only to a check on projects over $40,000. Port lawyers are not alone in this interpretation. The Municipal Research
and Services Center (www.mrsc.org) has a handy contracting tool on its web page under the heading Research Tools/Find
Your Contracting Requirements which reaches the same conclusion.
What about tenant improvements on leased property? Of course, the standard tenant designed and funded improvement
on port property leased long-term is not a problem. Issues seem to always arise when there is some unusual proposal to
improve port property where the cost, no matter how convoluted, is ultimately executed at the cost of the port. Examples of
these unusual proposals include: (i) a tenant offering to improve a port building for a reduction in rent; (ii) a tenant offering
to improve other port property for a reduction in rent or free use of the improvement, or; (iii) a shorter term lease which
requires the port to purchase the tenant installed improvements at the end of the lease. The best advice is: if port property
is improved and if the port is using public funds (even if the funds are in the form of a rent reduction or a mandatory
purchase) the agreement must be analyzed carefully. Be particularly careful of any discussion starting with “I can build it
cheaper because I don’t have to pay prevailing wage.” I am not saying that a suitable transaction cannot be structured,
especially if you involve the port lawyer early. I am saying that the public bidding laws and the prevailing wage laws are
state laws that must be followed on all public work projects. Granted, it is frequently more expensive to use the public works
process, but that was the Legislature’s call.
The gate in the chain link fence. Back to the executive director who raised this subject by merely asking if port employees
could “install a gate” in a chain link fence. The answer is “yes” because of the powers granted in RCW 53.08.120 and RCW
53.08.135. In such a circumstance the ED might also consider using the part of RCW 53.08.130 that allows a port to call for
bids based upon “best bidder submitting his or her own plans and specifications” as opposed to designing a gate. Using the
example of a gate, the bid would merely say “a gate of a certain size with a certain type of lock” and then let the bidders
describe what they would provide and for how much. The port would then select the “best bid”, which is not necessarily the
lowest bid. The “best bid” process should be considered for items where different vendors may have different and
proprietary methods of building an item that is installed as part of a public work. Or, since the job is likely less than $300,000,
the small works rooster procedure in RCW 39.04.155 could be used; however, if there is not a small works rooster established it
may be easier just to publish a request for bids.
As always, please contact your port counsel with any questions regarding this topic. And, if you have a particular question
for a Knowing the Waters please email me at fchmelik@chmelik.com.
EMPLOYMENT OPPORTUNITIES
Operations Analyst —Northwest Seaport Alliance
Stormwater Utility Program Manager—Port of Seattle
Sr. Environmental Program Manager—Port of Seattle
Aviation Maint. Procurement & Inventory Supervisor—Port of Seattle
Construction Manager—Port of Seattle
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WPPA
MEMBERS LETTER
FAST BALLS, CURVE BALLS, AND CHANGE-UPS by Eric Johnson
I suppose I am typical if at the end of the year I reflect on things. I sorted my thoughts this year into two
groups: the things that had changed over the course of the year, and the things that had stayed the
same.
Things that change are always more interesting, so I’ll start there. For me, one of the most significant was
the commercial alliance that the Ports of Seattle and Tacoma formed in order to manage and market
their combined seaports. This Northwest Seaport Alliance is truly an historic undertaking in our port world,
and we will be seeing the effects of that change for some time to come.
Close behind that development for me was the passage – finally – of a state transportation investment
package. I don’t know if I can fully convey how refreshing it is to go into a legislative session without that
challenge in front of us. It was beginning to feel like we would never get it done.
Within the smaller WPPA world, things changed too. Our Spring Meeting format is different. We are developing an education and training program that will help you understand and function in a complicated world.
And perhaps the most welcome change of all; a new General Manager and aggressive re-building plan for the Seattle Mariners! After
all, if we can pass a gas tax and create a commercial alliance of the Ports of Seattle and Tacoma, we ought to be able to assemble a
lineup of speedy contact hitters who can play defense.
Which is a good transition to the things that haven’t changed. The biggest in my mind is the continued absence of an education funding plan for the state. The problem remains entangled in a thicket that there seems no way out of. The reason we need to care is that
this issue will affect every other public policy issue that I can think of.
And another thing that hasn’t changed is the continued inability of the state to develop a meaningful program for rural job-creation.
Bad news from sawmills and smelters around the state continues to pile up. There are some agricultural bright spots, and some manufacturing ones too, but to my eye Washington remains dangerously divided between urban prosperity and rural hardship. No leader is
taking up this cause.
As I close out for the year, I want to thank all of the amazing port commissioners and staff who work so hard to create better communities. Here’s to a great 2016 – and maybe a shortstop who can hit.
ECOLOGY SETS MEETING FOR EWA SWMM
UPDATE
Department of Ecology is supporting the effort to update the
Stormwater Management Manual for Eastern Washington (2004).
A kick-off meeting to begin this discussion will be held January 8,
2016 at the Moses Lake Fire Dept. (701 E. 3rd Ave, Moses Lake WA)
from 9:30-2.
Agenda:
9:30:
Welcome & Introductions
9:45:
Initial discussion on what needs to be updated in the EWA
SW Manual
11:00: Process going forward
- RFP
- Steering committee
- Project timeline
-EWA Listserv to share meeting invites/project info
12-1:
LUNCH on your own
1-2:
Wrap-up if needed
For more information, contact Abbey Stockwell with Ecology at
abbey.stockwell@ecy.wa.gov
NEW LEGAL DECISION ON PUBLIC RECORDS
ACT LITIGATION PROVIDES GUIDANCE
The recent court of appeals
decision in Benton County v.
Zink holds a number of lessons to be learned regarding
procedures for dealing with
electronic records and developing an effective strategy for dealing with a litigious
requestor.
The request in this case was
so voluminous that the county informed the requestor that it might take seven years to complete! The county had several policies in place regarding the types
of copies that can be provided electronically and which cannot.
The implementation of these policies worked in its favor.
The Municipal Research and Services Center has an excellent summary of the case, including bulleted lessons that can be taken from
the case and applied to port districts.
For a summary of the case, click here.
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WPPA
MEMBERS LETTER
PORT NEWS
PORT OF SKAGIT COMMISSON APPROVES 60-YEAR LEASE FOR NORTHERN STATE CAMPUS
The Port of Skagit and the state Department of Enterprise Services have entered into the first phase of several anticipated
phases for transition of the 225-acre North Cascades Gateway Center campus to local control.
Beginning January 2016, the state will enter into a 60-year lease with the Port of Skagit to redevelop the site. The 2015
Washington Legislature granted Enterprise Services authority to pursue leases for the property for up to 60 years.
State Sen. Kirk Pearson, whose 39th district includes most of Skagit and Snohomish as well as the northeast corner of King
county, was instrumental in passing the measure allowing the long-term lease for the property.
Sen. Pearson said: “It is amazing to realize the former Northern State Hospital campus has the potential to become a major local employer, just as it was more than a century ago. The support of the Legislature and passing Senate Bill 5887 was
only the beginning of a collaborative process to find alternative uses for the property. Together, we have paved the way
for a world-class green technology center that will create good local jobs.”
The center, formerly the Northern State Hospital campus, is a state-owned property located in the City of Sedro-Woolley.
Since the hospital closed in 1973, the site remained underutilized.
CUMMINS AND FOSTERS NAMED 2015 FRIENDS OF THE PORT OF KENNEWICK
The Port of Kennewick’s Tim Arntzen, chief executive officer, announced this
year, in recognition of the incredible participation and significant involvement
by citizens in port projects, staff chose to bestow two 2015 “Friend of the Port”
awards.
Rich Cummins, president of Columbia Basin College was chosen for his involvement in the Port of Kennewick’s Vista Field redevelopment and community
planning process.
Cummins served as volunteer chairman for the Vista Vision Task Force, a 50+
member citizen committee tasked with meeting for a full year; gathering community input; and providing recommendations to Commissioners for the final
Vista Field Master Plan. On Tuesday, the Port Commission presented Mr. Cummins with a plaque in recognition of the tremendous time, energy, and effort
he expended running the meetings, keeping participants focused and engaged; and working to ensure an inclusive, sustainable, community-driven
plan.
Port officials also recognized and presented a plaque to Dara and John Foster, citizens of historic downtown Kennewick for purchasing basalt benches for
the Clover Island boat launch scenic viewpoint.
“We are pleased to recognize both Rich Cummins, and Dara and John Foster,” added Port Commission President Don Barnes. “The Fosters have a passion for downtown Kennewick and wanted to do their part to create a vibrant
waterfront. And Rich Cummins understood that an actively engaged leadership team would be crucial to shaping the future of Vista Field.”
Continued Barnes, “Simply put, they represent the very best in citizen participation and activism. For that we are ever grateful; and we thank and honor
them as our 2015 Friends of the Port.”
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