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Local View: Tell port leaders to end secrecy

The Columbian
Published: June 21, 2015, 12:00am

The Port of Vancouver is an economic engine. It provides family-wage jobs, is in many ways a good environmental steward and contributes to our community through involvement in the waterfront project. But engines break down, and the Tesoro-Savage oil terminal lease is the second major breakdown in two years, with the first being the failure of the port to close on the BHP Billiton potassium contract when the commodities marked collapsed. It also reveals a pervasive culture of secrecy that erodes the port’s credibility and financial stability.

These breakdowns result from poor listening, poor planning and port CEO Todd Coleman’s “bet on the come” approach, which is agreed to by commissioners who rarely question staff.

In some ways, the plan was a good one: Build a large “rail extension” to better use existing property. But plan execution and a “we know best” arrogant attitude doomed it.

Originally estimated to cost $56 million, figures from the port’s own website show that the extension grew to an estimated $275 million budget-buster, $225 million to date. And when the BHP Billiton potassium contract failed, someone was needed to pay this cost.

The port doubled down, opened an office to attract oil companies and might have violated the open-meetings laws before signing a lease with Tesoro-Savage to build the largest oil-by-rail facility in the United States.

Let’s follow the money. The port reports that its financial condition is excellent, that the state gave it a clean audit and that big New York financial agencies rate it highly. But what it does not say is that its financial condition assumes the oil terminal will be built. New York financial agencies say that there is less than a 50 percent chance that this will happen, and the state auditor only looks at the current year.

What does this mean? A possible a tax increase? It depends on whom you talk to, and whom you believe.

We met with Teresa Wagner, the port’s former communications manager, and Julianna Marler, chief financial and administrative officer. We questioned port finances and whether the oil terminal is needed to balance the books. No, we were told, the port did not need the deal.

Now, however, things are less clear. Commissioner Brian Wolfe’s sworn deposition contradicts port staff. He testified under oath that the Tesoro-Savage contract revenue is needed.

Port financial documents suggest Commissioner Wolfe is correct. According to internal documents, the port is likely relying on a $6.7 million payment by Tesoro-Savage in 2016, with substantially higher payments thereafter. The increased payment appears to assume that the oil terminal will be approved by the state, survive court challenges and be operating next year. But this is not going to happen. Approval proceedings are expected to continue well past 2016.

The port can cancel or amend the contract after a certain time. We don’t know when because of port secrecy. But it might be soon.

We demand a public hearing on any contract revisions or extensions. Fool us once, shame on you; fool us twice, shame on us. The days of closed doors are over.

Some might say, “It’s bad, but we can’t do anything.” That’s wrong. Write letters to the editor, and call Coleman and port commissioners at 360-693-3611. Tell them to start dealing straight. And on Aug. 4, vote for a candidate who supports cleaning house.


Ted Gathe is a retired city of Vancouver attorney, and James Luce is retired chairman of the Washington State Energy Facility Council. They wrote this opinion piece on behalf of Taxpayers for a Responsible Public Port.

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