Columbia Riverkeeper v. Port of Vancouver USA

Washington Supreme Court·Decided June 8, 2017·No. 92455-4·Published

Opinion

This opinion was filed for record 'F'1··a:e··~. , / IN CLERKt OFFICE ' at

SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

COLUMBIA RIVERKEEPER; SIERRA ) CLUB; and NORTHWEST ) ENVIRONMENTAL DEFENSE ) CENTER, ) ) No. 92455-4 Petitioners, ) ) En Banc V. ) ) JUN O8 2017 Filed - - ---- PORT OF VANCOUVER USA; ) JERRY OLIVER, Port of Vancouver ) USA Board of Commissioners ) President; BRIAN WOLFE, Port of ) Vancouver USA Board of ) Commissioners Vice President; and ) NANCY I. BAKER, Port of Vancouver ) USA Board of Commissioners- ) Secretary, ) ) Respondents. ) _________ )

WIGGINS, J.-Washington's Open Public Meetings Act (OPMA) requires that

"[a]II meetings of the governing body of a public agency shall be open and public ...

except as otherwise provided in this chapter." RCW 42.30.030. An exception to this

open meeting mandate permits governing bodies to enter executive session "[t]o

consider the minimum price at which real estate will be offered for sale or lease when

public knowledge regarding such consideration would cause a likelihood of decreased

price." RCW42.30.110(1)(c). The parties dispute the scope of this exception as Columbia Riverkeeper et al. v. Port of Vancouver et al. No. 92455-4

applied to five executive sessions conducted by the Port of Vancouver USA (the Port).

The scope of this "minimum price" exception is a matter of first impression.

We now hold that a government entity may enter executive session to discuss

the minimum acceptable value to sell or lease property, but not to discuss all factors

comprising that value. To the extent that various factors directly alter the lowest

acceptable value, the governing body may discuss how these factors impact the

minimum price; but general discussion of the contextual factors themselves must still

occur at an open public meeting. As a result, we reverse the trial court's partial

summary judgment in favor of the Port and remand for further proceedings consistent

with our analysis.

FACTS AND PROCEDURAL HISTORY

I. Factual History 1

In 2013, the Port negotiated a lease for a large rail terminal on public land with

two private companies, Tesoro Corporation and Savage Companies. The two

companies formed a joint venture to contract with the Port, creating Tesoro Savage

Petroleum Terminal LLC. As approved, the Tesoro-Savage lease would be "the Port's

largest single revenue generator," worth "upwards of $200 million to the Port."

Resp'ts' Br. at 8 (Port Br.).

1 Since this case is a review of a grant of summary judgment, "we consider all facts and make all reasonable factual inferences in the light most favorable to the nonmoving party," here, Columbia Riverkeeper, Sierra Club, and Northwest Environmental Defense Center. Scrivener v. Clark Coll., 181 Wn.2d 439,444, 334 P.3d 541 (2014).

page 2 of 31 Columbia Riverkeeper et al. v. Port of Vancouver et al. No. 92455-4

The new project would receive large quantities of petroleum products by rail for

export. Located on approximately 42 acres of the Port's property, the facility would

handle roughly 120,000-360,000 barrels of petroleum products each day.

Transporting these products would require between two and six trains per day, each

train a mile and a half long in length. Once at the terminal, the petroleum products

would then be loaded onto ships for export.

The Port evaluated the project in the context of its threefold mission to "1)

maximize marine business and development, 2) maximize industrial business and

development, and 3) generate and sustain diversified revenues." Clerk's Papers (CP)

at 2491. Together, these three aims are part of a common effort "to enhance

economic development for the benefit of our community." Id. at 1415. Because the

Port's focus is fundamentally economic, the lease's benefits are similarly financial-

both for the Port and for "the local community." Port Br. at 8.

For the Port, the lease's most obvious economic benefit is the monthly rent.

Other financial benefits to the Port take the form of different kinds of fees: area

maintenance fees, rail access fees, rail maintenance fees, wharfage fees, and service

and facilities fees. 2 For the community, economic benefits involve new jobs and

anticipated increases in regional spending. Id. (noting that the project will provide

"hundreds of construction jobs and other permanent jobs for the community").

2 The lease further requires Tesoro-Savage to spend money that does not go into the Port's coffers at all, including a lease security payment and various forms of insurance. The company is required to carry $1 million in property insurance, $10 million in liability insurance (per incident, up to $15 million in aggregate), and $25 million in pollution legal liability insurance.

page 3 of 31 Columbia Riverkeeper et al. v. Port of Vancouver et al. No. 92455-4

According to the Port, the project would indirectly generate an estimated 2,700 local

jobs peripheral to the project, as well as "$61 million in annual local purchases."

The lease's terms and associated benefits were negotiated by the Port's staff.

While staff kept the Port's board of commissioners updated through summary

documents and one-on-one conversations, commissioners had "no involvement with

the negotiations of [the] lease." Id. at 9. According to the Port's executive director,

Todd Coleman, commissioners generally render a decision only at the end of a lease

approval process, when the board deliberates and votes to either accept or deny a

lease.

Port staff is also responsible for determining the appropriate lease price. Staff

recommends a minimum price, and the commissioners confirm that the number is

reasonable. 3 According to the commissioners, they "are not directly involved" with

setting the minimum price and "expect the staff to do the research."

In the case of the Tesoro-Savage lease, the Port's staff first presented the

project to the entire board of commissioners in executive session-a meeting closed

to the public. The Port commonly holds executive sessions; according to

Commissioner Brian Wolfe, they occur "[a]bout 95 percent of the time" that a public

3 The overall price of the lease negotiated by staff is distinct from the "land value" of the leased property itself. The value of the land is only part of the final agreement and does not include various fees related to use of the land. See, e.g., CP at 1184 (describing the components of the lease price as including wharfage fees (the rate for moving commodities across the dock), the land lease, rail maintenance fees, rail usage fees, etc.). According to the Port's "current policies," the "land value" component for a real estate lease must be set according to fair market value. Id. at 1456. A separate real estate department sets this fair market value for land. Id. But see id. at 1416 (quoting Commissioner Jerry Oliver indicating that the Port "usually" follows the real estate department's recommendation, "but not always").

page 4 of 31 Columbia Riverkeeper et al. v. Port of Vancouver et al. No. 92455-4

meeting is also held.

Free access — add to your briefcase to read the full text and ask questions with AI

Columbia Riverkeeper v. Port of Vancouver USA, (Wash. 2017).

Columbia Riverkeeper v. Port of Vancouver USA (Columbia Riverkeeper v. Port of Vancouver USA) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Badaracco v. Commissioner
464 U.S. 386 (Supreme Court, 1984)
Detroit Free Press v. John Ashcroft
303 F.3d 681 (Sixth Circuit, 2002)
Equitable Shipyards, Inc. v. State
611 P.2d 396 (Washington Supreme Court, 1980)
Hama Hama Co. v. Shorelines Hearings Board
536 P.2d 157 (Washington Supreme Court, 1975)
Miller v. City of Tacoma
979 P.2d 429 (Washington Supreme Court, 1999)
Port of Seattle v. Rio
559 P.2d 18 (Court of Appeals of Washington, 1977)
State v. Beaver
60 P.3d 586 (Washington Supreme Court, 2002)
State v. Cooper
128 P.3d 1234 (Washington Supreme Court, 2006)
Cathcart v. Andersen
530 P.2d 313 (Washington Supreme Court, 1975)
Mead School District No. 354 v. Mead Education Ass'n
530 P.2d 302 (Washington Supreme Court, 1975)
State, Dept. of Ecology v. Campbell & Gwinn
43 P.3d 4 (Washington Supreme Court, 2002)
Ross v. State Farm Mutual Automobile Insurance
132 Wash. 2d 507 (Washington Supreme Court, 1997)
Miller v. City of Tacoma
138 Wash. 2d 318 (Washington Supreme Court, 1999)
Department of Ecology v. Campbell & Gwinn, L.L.C.
146 Wash. 2d 1 (Washington Supreme Court, 2002)
State v. Beaver
60 P.3d 586 (Washington Supreme Court, 2002)
State v. Cooper
156 Wash. 2d 475 (Washington Supreme Court, 2006)
Five Corners Family Farmers v. State
268 P.3d 892 (Washington Supreme Court, 2011)
Scrivener v. Clark College
334 P.3d 541 (Washington Supreme Court, 2014)