RES 2011-29 RELATING TO THE SETTLEMENT FUNDS RECEIVED FROM WASHINGTON STATE FERRIESRESOLUTION NO. 2011-29
A RESOLUTION of the City Council of Bainbridge Island,
Washington, relating to the settlement funds received from
Washington State Ferries.
WHEREAS, in the early 1970s, Jessie Hey and Bob and Rachel Smith, founders
of Bainbridge Island Concerned Citizens ("BICC"), challenged the City of Winslow's
decision to approve the construction of residential condominiums at the former Eagle
Harbor Boatyard site; and
WHEREAS, in 1974, BICC won their appeal before the Shoreline Hearings
Board ("SHB") against the City of Winslow (now the City of Bainbridge Island) and a
covenant was put on approximately 1.5 acres of land and tidelands restricting it to
community maritime use; and
WHEREAS, since 1974, BICC and many other community members have
committed to maintaining the community's right to water access, guaranteed by the
original covenant, in the forefront of public discussion and negotiations with WSF and
the State of Washington; and
WHEREAS, in 1995, Washington State Department of Transportation
("WSDOT") condemned this parcel of land and tidelands adjacent to its Washington
State Ferries ("WSF") maintenance yard in order to expand its facilities; and
WHEREAS, the Environmental Protection Agency ("EPA") and the City agreed
to allow the capping of the tidelands to create one acre of land so WSF could expand its
facilities; and
WHEREAS, in 1995, WSDOT and the City entered into a Memorandum of
Agreement ("MOA") under which WSF would set aside approximately one acre to
accommodate a boatyard; and
WHEREAS, in 1996, an EPA Record of Decision was issued that stated that if
WSF set aside an acre of land, the EPA could move forward with the clean-up of the
Eagle Harbor site; and
WHEREAS, WSF did not set aside the land, and the required permits were not
obtained from the City; and
WHEREAS, in 2010, in order to resolve the requirements of the MOA, WSF
came forward with two settlement options; and
WHEREAS, on December 15, 2010, City Council accepted WSF's settlement
offer of $2 million dollars in exchange for relinquishment of the City's rights and
obligations under the SHB decision and the MOA; and
WHEREAS, City Council desires to place restrictions on the use of the WSF
settlement funds; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND DOES
RESOLVE AS FOLLOWS:
Section 1. A new restricted reserve fund is created that is called the Capital
Improvement Opportunity Reserve, and the WSF settlement funds shall be transferred in
to this fund.
Section 2. Funds from the Capital Improvement Opportunity Reserve shall only
be used to support one-time capital projects with a water nexus. The funds shall not be
used to support ongoing staffing, maintenance or program costs.
Section 3. A minimum of five City Council votes are required to use any of the
funds from the Capital Improvement Opportunity Reserve.
PASSED by the City Council this 14t" day of December, 2011.
APPROVED by the Mayor this 14t" day of December, 2011.
By: _
Kirsten Hytopoulos, Mayor
ATTEST/AUTHENTICATE:
By: �s
Rosalind D. Lassoff, City Clerk
FILED WITH THE CITY CLERK: December 9, 2011
PASSED BY THE CITY COUNCIL: December 14, 2011
RESOLUTION NO. 2011-29