Port of Port Townsend to mull 20 percent work yard discount backed by marine trades group

PORT TOWNSEND — Poulsbo-based commercial fisherman Arnie Lee says higher fees could outweigh the convenience of having his boat repaired and maintained at Port Townsend Boat Haven.

He’s just beginning to feel the bite of a marine work yard fee increase.

“It’d be detrimental because rates are over $50 a day to stay here,” Lee said.

His long-line commercial halibut and black cod fishing boat, Evening Star, is in seasonal dry-dock at the Port of Port Townsend Boat Haven work yard for repairs and maintenance.

Lee has fished for 45 years in the waters off Alaska and Washington state, and has dry-docked his 65-foot boat at the Port Townsend yard for the past six years.

He figures he has been paying about $1,300 a month, plus a 3 percent marine trades charge on a heavy lift fee at the port’s marine haul out for dry dock.

It is stories like Lee’s that have the Port Townsend Marine Trades Association supporting port Commissioner Dave Thompson’s proposal of a 20 percent discount for all boat owners having work done at the yard.

Thompson is a marine trades operator at the port’s Boat Haven.

The proposal “represents a positive marketing strategy for our membership,” the association of more than 60 members wrote to the port commissioners on Sept. 19.

Port Commissioner Herb Beck of Quilcene, who recently voiced support for considering additional rate increases at the work yard, said on Wednesday that he believes the port can work with the association.

“All we have to do is come up with an agreement,” Beck said.

“And I don’t see why we can’t work something out.”

Commissioner Bob Sokol said he was concerned that a discount could lead to abuse by independent contractors.

He urged Thompson to recuse himself and leave the meeting on Wednesday because he stood to gain from the 20 percent discount proposal.

Thompson remained at the meeting.

Revenues down

Since the port commissioners approved a 40.8 percent rate increase for the 2007 budget, work yard revenues have fallen off.

Port Finance Director Don Taylor told port commissioners on Wednesday that the 2007 year-to-date revenues are 84 percent of last year’s.

A 26 percent work yard rate increase came into effect in 2006.

“We are at 99 percent of the 2005 actual revenues,” Taylor said.

Thompson’s 20 percent discount proposal would drop the work yard rate per vessel from 50 cents per foot a day to 40 cents for vessels being actively worked on, Taylor said.

He suggested a rate of 40 cents per foot per day for stays under 30 days, and 35 cents per foot per day for vessels staying more than 30 days.

As far as numbers of vessels, the port is still doing well, said Taylor, but the vessels are cutting short their stays in the yard.

That’s what has chopped revenue, he said.

Considering a move

Lee, whose six-person crew includes a Port Townsend resident, said he wonders if it would be cheaper for him to dry dock in Seattle, where parts are easier to come by.

He now frequents Henery Hardware, across Sims Way from the yard, and Admiral Marine Supply in the yard when he needs parts or supplies.

“It’s nice to be able to come back because you build up a relationship with people,” Lee said.

His boat is being repaired by Steelhead Marine, owned by Tim Hoffman.

Hoffman said that Lee’s boat has been sitting in the boat yard for up to 24 months over the past six years, and that he expects his company will work on the vessel until Christmas.

Hoffman said there is an economic ripple effect from the yard that benefits Port Townsend and Jefferson County, as well as the port.

Port Executive Director Larry Crockett has urged the port commissioners to hold off on additional yard rate increases until the new rates “settle in.”

Crockett also supports ending the 3 percent heavy lift charge.

The port official said the rate increase has “been too successful” at turning vessels out of the work yard more quickly.

Gordon Nielson, an independent marine trades contractor at the Boat Have who signed Marine Trades Association’s letter to the port, said the discount would encourage more commercial fishing boat owners to hire association members.

Higher yard rates, combined with high fuel prices, could lead to more fishing boat owners having work done in Kodiak, Alaska, instead of Port Townsend, say .association members.

“Our established relationships with boat owners of this fleet have endured through past lean times,” the association’s letter said.

“The proposed discount would complement and nurture these long-standing relationships.

“The boat owners could then choose between an unknown service in Alaska, or a known quality with supportive moorage and yard rates.”

Hoffman questioned the validity of the increase.

“Just before the rate increase, everybody had more work than they could handle,” Hoffman told the port commissioners.

It was “really too much too quick,” he said.

________

Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or jeff.chew@peninsuladailynews.com.

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