Port of Olympia commission approves contract for new fuel dock

After years of planning and discussion, the Port of Olympia commissioners voted 2-1 Monday to award a construction contract for a new fuel dock at Swantown Marina.

The $2.1 million contract went to Anderson Environmental Contracting of Kelso. Preliminary work is expected to begin this month, followed by more visible activity in December, January and early February. The fuel dock is expected to be operational in March.

Commissioners Joe Downing and Bill McGregor voted for the contract, while Commissioner E.J. Zita voted against it. Zita also voted against seeking bids for the project in the first place. She has questioned the project in the context of economics, the environment and as a community asset.

At Monday’s meeting, Zita shared additional concerns: the danger of having more motorized boats near rowers and kayakers; the concern that the fuel dock’s high-speed pump could produce a large spill if there’s a problem; and the belief that it would be better for the port to invest in an agricultural business center, which might employ more people than the fuel dock.

Zita also raised concerns that fuel sales volumes might not be enough for the dock to pay for itself. Port finance director Jeff Smith acknowledged that “sales volume is the primary business risk.”

“Are you going to buy 100 percent of your fuel from our dock?” Zita asked the audience, which was mostly boaters who voiced their support for it.

“There are still a lot of unanswered questions,” she said, “and if we make a decision to fund this right now, we are deciding on incomplete information.”

Downing countered her comments more optimistically, saying he is bullish on the rate of fuel sales. Other reasons to support it: 8,000 licensed boaters in Thurston County and other elected officials who have shown support for it.

A number of annual fuel sales scenarios were revisited Monday night, and Downing pointed out that they were conservative estimates that did not include visiting boaters, boats hauled here on trailers, or commercial vessels, such as the tugs moored at the marine terminal.

“I’m cognizant of the fact that the price needs to be competitive, and we need the fuel volume,” he said, adding that those were “pretty high hurdles.” But over time he sees growth in the business, he said.

The Olympia area at one time was home to four fuel docks, but two have closed. The two remaining are at Boston Harbor and at Zittel’s at Johnson Point. Boaters say those are not convenient locations, which leads to people fueling their boats with unsafe cans.

McGregor wants to make sure the port won’t encounter any surprises in the area west of the dock, where the diesel and gasoline tanks will be buried.

“Every time we turn dirt, we find surprises,” he said. “What surprises are we anticipating?”

None, engineering director Bill Helbig said, because the soils have been tested. There is some contamination from legacy pollution that the port will remove, clean up and dispose of, he said.

“It is not an unknown,” Helbig said.

The cost of the project is about $3.1 million, which includes money already spent during planning. Funding will come from port money, two state grants and a loan of as much as $2.5 million from Thurston First Bank.

Before the commission voted, Zita asked a question that was prompted by a member of the Pacific Northwest Regional Council of Carpenters, who spoke during public comment.

Zita’s question: Does Anderson Environmental offer an apprenticeship program to union laborers?

She was told Anderson is a nonunion company, which surprised her and others in the audience.

McGregor emphasized that the port’s job is to respond to the “lowest responsible bidder.”

But that disclosure caused Downing to pause and comment before the vote.

“The carpenters union brings valid concerns,” he said, adding that it’s something the port should take up.

This story was originally published September 13, 2016 at 3:53 PM with the headline "Port of Olympia commission approves contract for new fuel dock."