07/23/2008: "Council Hearing On $3M Dock Purchase"

(Land & dock proposed for purchase next to Orcas Ferry Landing)

The County Council has moved to purchase water front property and a dock for public marine access next to the Orcas Ferry landing.

The proposed purchase would be funded by road fund money. Public Works Director Jon Shannon presented a report to the Council that explained the purchase can be accomplished by “borrowing $3,000,000,00 from the State Treasurer’s “local option Capital Asset lending )LOCAL) program” by selling a bond. The terms are 4.48% interest for twenty years.

Shannon said Public Works has applied for a state grant, and hopes to receive $500,000 or more that would be available in 2009 to help off-set the cost of the purchase. With respect to county debt, Shannon reminded the council that Public Works is currently spending $212,000.00 a year (2% of the annual budget) in debt service for past bonding projects, such as the purchase of the La Farge defunct gravel pit property on San Juan Island, that was purchased by direction of the council..

Shannon made it clear to the council members that the Orcas land and dock purchase will increase the annual debt service (i.e. paying for the right to have borrowed the money) by $228,000.00 -or 4% of the annual budget; but the debt will be less if grant money is obtained.

According to Shannon’s testimony and the staff report, the County currently spends $4.500.00 a year leasing three boat slips for year round moorage at the Bayhead Marina, that is located just east of the Orcas terminal. Moving the boats to the new dock would save money Shannon said, but local observers told the Island Guardian that the dock the County is interested in is subject to strong winds in the winter, and is not protected from winter storms.

The Council has express an interest in addressing a “service gap in marine access and parking I the area of the Orcas ferry land.” The original intent was to work jointly with Washington State Ferries (WSF) on the parking issues, WSF agreed to join in, but then near the end of the process, Shannon said WSF backed out of the deal, and as a result the County now must decide to abandon the purchase, or go ahead alone.

The staff report indicates that WSF has continuing problems with off and on loading, and perhaps in the future WSF can be brought back on board as a partner in the use of the property.

Alan Lichter moved to revise the 2008 annual road program, which will require a public hearing in August, and a revised 2008 budget. Motion was seconded by Gene Knapp. The vote was unanimous.