HOUSE TRANSPORTATION STANDING COMMITTEE February 24, 1994 5:00 p.m. MEMBERS PRESENT Representative Richard Foster, Chair Representative Gary Davis, Vice-Chair Representative Eldon Mulder Representative Al Vezey Representative Bill Hudson MEMBERS ABSENT Representative Jerry Mackie Representative Curt Menard COMMITTEE CALENDAR Presentation by Port of Bellingham. WITNESS REGISTER JIM DARLING, Director Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98227 206-676-2500 BRUCE AYERS Bellingham City Council c/o Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98227 206-676-2500 MIKE BRENNAN, President Whatcom County Chamber c/o Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98227 206-676-2500 SCOTT WALKER, Commissioner Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98227 206-676-2500 PETER ZUANICH, Commissioner Port of Bellingham 625 Cornwall Avenue Bellingham, WA 98227 206-676-2500 ACTION NARRATIVE TAPE 94-5, SIDE A Number 000 CHAIR FOSTER called the meeting to order at 5:05 p.m. He welcomed the Port of Bellingham (POB) representatives and thanked them for the summer tour in which he had participated last August. Number 029 JIM DARLING identified himself as Acting Executive Director for the POB, and thanked the committee for the opportunity to make the presentation. He stated that there were two issues in particular which he wished to comment on. The first was the airport, which serves the northwestern part of Washington. He said last year the runway was extended from 5000 to 6800 feet. In addition, they are replacing the Winnebago control tower with a tall one, and will be installing additional navigational aids. He stated that this project would give them the ability to attract airlines which would perhaps then renew their direct links between Bellingham and Alaska, both for passengers and cargo. Number 082 MR. DARLING identified the other project as the Multimodal Facility Fairhaven Station, which was made possible through a series of federal and state grants, as well as local contributions by the port. This facility will be within several hundred feet of the ferry terminal and will include a bus facility and train terminal. He concluded by making the point that, since the ferry came, this project has always been what was envisioned as the next step, and represents a recommitment to the ferry terminal. Number 146 BRUCE AYERS introduced himself as being with the Bellingham City Council, and confirmed Mr. Darling's assertions that the community is recommitted to the ferry and port. He mentioned moving ahead their truck route, onto the freeway, as one of the recent steps taken, as well as working on more landscaping, perhaps adding a motel, etc., all working toward the goal of making the port more of a hub. Number 184 REPRESENTATIVE DAVIS asked if the POB operates under an enterprise fund-type situation, and if the combination bus/ train/ferry complex is an industrial development site. Number 188 MR. DARLING responded that the Port Authority is a special district in the state of Washington, and their boundaries are co-terminus with Whatcom County. He added that they have taxing authority, with about 25% of their revenue coming from property taxes, and 75% from operating fees, leases and rents. The Port Authority uses a single fund, but has separate cost centers. The new transportation location is such a separate cost center. He said that they don't do too well, financially, with the transportation location, but the new Amtrak and Greyhound links will certainly help, and are attracting new cruise vessels. He concluded with the point that the facility has many spin-off benefits for the community. REPRESENTATIVE DAVIS asked if the airport is included in the Port Authority. MR. DARLING responded that the Port Authority operates the airport, marinas, the passenger facility, a break bulk cargo terminal, and they are one of the largest property owners and operators, from retail to heavy industry, renting out a diverse range of property. Number 216 MIKE BRENNAN identified himself as being with the Bellingham Chamber of Commerce, and noted he'd had the pleasure of addressing the committee for four years ago now. He mentioned past discussions of the Canadian impact on the Whatcom County. In 1991 they had about 31 million Canadians come into town; now the numbers are dropping due to a lower- valued Canadian dollar. However, they are having a good deal of growth and development, and folks are coming into Bellingham to do their regional shopping. Bellingham, as a community, is going through a transition; he sees it as a host community. Number 244 REPRESENTATIVE DAVIS asked Mr. Brennan how the Chamber reacts to government owned property that is leased to hotels, etc., and if they had a lot of complaints from private enterprise regarding the competition, or if they did fair market value leases so that they are on par with private enterprise. Number 252 MR. DARLING responded that they do fair market leases, though they have some historical leases, which may be below market value, to stimulate economic development; but in the not too distant past, they will go completely to fair market leases, for precisely the reason brought up in Representative Davis' question. Number 262 MR. BRENNAN made the point that the state of Washington is the only state in the nation which has a constitutional preclusion where the public sector cannot in any way benefit in activities on the private side. And Port Authorities was created to act in a quasi capacity between government and the private sector, so they have the bonding capability and are expected to do the capital improvement processes necessary through the bonding programs available to them, to enhance community-size activities. Number 270 SCOTT WALKER identified himself as Commissioner of the POB, and added that Washington is somewhat different in Port Authorities, as all the commissioners are elected rather than appointed. The sensitivity to the private sector is reflected in the campaigns. Number 292 CHAIR FOSTER asked how long the terms are. Number 296 MR. DARLING responded that they are six year terms, but there's some variation. Number 298 CHAIR FOSTER asked what kind of constituency it is. Number 300 MR. DARLING responded that it is county-wide. Number 303 CHAIR FOSTER asked what became of the controversy relating to taxes on cargo ships. Number 305 MR. BRENNAN responded that the state of Washington has a sales tax exemption for residents of Alaska, the U.S. Virgin Islands, American Samoa, the Province of Alberta -- those states or provinces which do not charge a sales tax. He added that the new omnibus tax act in Washington attempted to eliminate Alaskans' sales tax exemption, and would only allow it for people from Oregon, but the Governor line-item vetoed it. Number 328 MR. DARLING made the point that the POB works very closely, and has a very good relationship with, the Marine Highway staff. Number 334 COMMISSIONER WALKER stated that he felt more of a partnership with Alaska than the Seattle group. He then presented the Transportation Committee with a picture of the POB. Number 348 CHAIR FOSTER expressed thanks and appreciation for the picture, as did other committee members. Number 353 PETER ZUANICH identified himself as Commissioner of POB, and made the point that MCI owns a shipyard immediately adjacent to the ferry terminal, and on POB property, which is probably the favorite shipyard in the United States for the Alaska Ferry System -- they can't say too many good things about them. Number 368 CHAIR FOSTER thanked Reed Stoops for his part in keeping the committee informed. Number 381 MR. DARLING invited the committee to attend the opening of the Multimodal Facility in October 1994. Number 389 CHAIR FOSTER adjourned at 5:30 p.m.