HomeMy WebLinkAbout10/25/2022 05. Port Districts • iV4t
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.
For Meeting of: October 25, 2022
ITEM TITLE: Port Districts
SUBMITTED BY: Sara Watkins, City Attorney
SUMMARY EXPLANATION:
At the City Council retreat the Council indicated it was interested in obtaining more information
about port districts. The attached memo gives a brief summary of the formation and function of
port districts.
ITEM BUDGETED: No
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
d Legal Memo re Formation of Port Districts 10/19/2022 Corer Memo
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Office of the City Attorney
City of Yakima
MEMORANDUM
October 19, 2022
TO: Mayor Janice Deccio & City Councilmembers
Robert Harrison, City Manager
FROM: Sara Watkins, City Attorney
SUBJECT: Port Districts
City staff was asked to provide information on the formation of both a port district. Please find
below a summary of the requirements as well as an outline of the steps necessary to move
forward to form either of these entities.
1. Port Districts Generally.
Port districts are independent government bodies that are run by commissioners elected by voters
within the port district's boundaries. Ports generally work with businesses and governmental
agencies to "promote trade, industrial development, and jobs in their regions.' Ports were
originally formed to help facilitate marine transportation and commerce. That has expanded over
the years.
Port districts are hereby authorized to be established in the various counties of
the state for the purposes of acquisition, construction, maintenance, operation,
development and regulation within the district of harbor improvements, rail or
motor vehicle transfer and terminal facilities, water transfer and terminal facilities,
air transfer and terminal facilities, or any combination of such transfer and terminal
facilities, and other commercial transportation, transfer, handling, storage and
terminal facilities, and industrial improvements.
RCW 53.04.010(1).
1 Public Port Districts in Washington:Origins, Kit Oldham(10/20/2010)https://www.historylink.oro/File/9614
200 South Third Street,2"d Fl. I Yakima,WA 98901
P:509.575.6030 I F:509.575.6160
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Mayor Janice Deccio & City Councilmembers
Robert Harrison, City Manager
October 19, 2022
Page 2
State law does not require a port district to be adjacent to a body of water with harbor
improvements. Instead, the law allows port districts to be created in any location, as long as the
port district is established for the purposes allowed. RCW 53.04.015.
Port districts are used as an economic development tool and are authorized to improve their lands
for industrial and commercial purposes. RCW 53.08.040. RCW 53.08.245 specifically states: "It
shall be in the public purpose for all port districts to engage in economic development programs.
In addition, port districts may contract with nonprofit corporations in furtherance of this and other
acts relating to economic development." Such economic development programs can include
apprenticeships and job training programs at Port tenant facilities. Ports can also promote tourism
through advertising or distributing information to others.
2. Port District Powers and Financing.
Port district powers are outlined by statute. Those powers including acquisition of property, the
ability to condemn land for port purposes, and levying and collecting assessments upon property
to carry out its purposes. RCW 53.08.010. A port district may also acquire and operate an airport,
commercial transportation facilities, and improvements relating to industrial and manufacturing
activities. RCW 53.08.020. Port districts can also construct, purchase and maintain facilities to
process or freeze agricultural products and perishable commodities. Id.
If the port district owns property, it has the authority to lease that property for any purpose and on
any terms that the port commission deems property, but no lease can be longer than 50 years
with options to extend for an additional 30 years. RCW 53.08.080. Port districts also have the
authority to sell property pursuant to RCW 53.08.090 and RCW 53.08.091.
In addition to powers related to property, port districts are also authorized to engage in economic
development programs such as job training, apprenticeships,job advancement and retention, and
occupational education programs. In so doing, the programs must be associated with port
tenants, customers and local economic development activities related to port tenants or port-
related economic activities that are sponsored by a port and operated by a nonprofit, private or
public entity. RCW 53.08.245(2)(a). Ports can also aid with tourism promotion and operate
tourism-related facilities in some circumstances. RCW 53.08.255.
Ports can be financed through tax levies, up to 45 cents per $1,000.00 of value on real property.
RCW 53.36.020. They can also borrow money or issue bonds. RCW 53.36.030. Further, ports
can set up local improvement districts to have all the properties specially benefitted by the local
improvement pay for said improvements. RCW 53.08.050. It should be noted that any LID set
up would require the County Treasurer to perform the duties of the treasurer for the LID. This
could require an interlocal agreement between the port and the county for payment for such
services, which likely would be covered by the LID assessments. RCW 53.08.050.
Ports also can receive gifts of real or personal property. RCW 53.08.110.
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Mayor Janice Deccio & City Councilmembers
Robert Harrison, City Manager
October 19, 2022
Page 3
3. Port District Formation.
The Council has no role in forming a port district. It must be formed through a petition and ballot
proposition to the public. RCW 53.04.023.
The following steps would need to be taken to form a Port District:
1. A petition initiating the creation of a port district would be filed with the Yakima
County Auditor, outlining the proposed boundaries of the district, the number
of proposed commissioners (three or five), describing the boundaries of each
of the commissioner districts, and the name of the proposed port district. Such
petition must be signed by 10% of the voters residing within the boundaries
who voted at the last county general election.
2. The County Commissioners would hold a public hearing on the creation of the
proposed district when the auditor certifies the petition.
i. Testimony would be taken;
ii. The Commissioners could amend the boundaries of the
proposed district if it finds that it is in the public interest;
iii. If it is proposed to add land then another public hearing
would be held; and
iv. The Commissioners must find that creation of the port
district is in the public interest.
3. The Commissioners then, if finding it is in the public interest to have a port
district, will submit a ballot proposition authorizing the creation of the district.
The ballot proposition is paid for by the County.
4. The port district will be formed if a majority of the voters voting on the
proposition vote in favor.
5. The ballot will also contain the names of people who submit as candidates for
port commissioner, however those seats are only filled if the port district is
approved.
If the County Commissioners sought to form a county-wide port district, then they have the
additional option to place the question of port district formation on the ballot only by resolution,
without the need for the petition. The entire county would then vote on the formation of the county-
wide port district.
4. Additional considerations when determining whether to form a port district.
Port districts operate to serve a specific public purpose—in the case of a port district in Yakima
that would likely be for economic development and commerce purposes. The money raised by
the port district would be used for specific reasons—infrastructure improvements and other
benefits associated with port activities. Unlike a city government which has a broad range of
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Mayor Janice Deccio & City Councilmembers
Robert Harrison, City Manager
October 19, 2022
Page 4
purposes that need to be funded, the port district's funding would be used solely for those
statutorily allowed expenses based on the local port district's activities.2
However, port districts can also create another governmental entity, which could lead to
inefficiencies or frustration from constituents who are not familiar with the differences between
the port district and the city, or differences between the port district and other special purpose
districts in the area. Additionally, people will have to run for office as port district commissioners
and traditionally the number of people interested in running for special purpose positions has been
lower than those interested in running for City Council or County Commissioner.3
Finally, port districts, once formed, are a separate and independent governmental entity from the
city, governed by the port district commissioners. It is formed by the statutory process, and can
only be dissolved through the statutory process.
If a port district is formed, it should take an active approach to visibility in the community so that
community members are aware of the district, its benefits, its roles and its responsibilities, as well
as how it is separate and distinct from the city.
2 See Special Purpose Districts in Washington State, MRSC publication, 2003, page 17.
https://mrsc.org/getmedia/f8cd14a6-1144-4aae-ba39-cda3be643db5/Special-Purpose-Districts-In-
Washi ngton-State.pdf.aspx?ext=.pdf
3"The 1988 Washington Legislative Budget Committee report noted that a sizeable percentage of special
district races were uncontested." Id. at 18.