WPPA Port Management Agreement (PMA) Handbook WPPA Port Management Agreement (PMA) Handbook October 2003 WPPA Port Management Agreement (PMA) Handbook This document is a publication of the Washington Public Ports Association. It was a collaborative effort of the WPPA Aquatic Lands Committee, chaired by Jim Darling, Executive Director, Port of Bellingham. The committee is staffed by Eric Johnson, WPPA Assistant Director, Environmental Affairs, who led the development and drafting of this document. The Department of Natural Resources participated in reviewing this handbook. WPPA particularly acknowledges and appreciates the contributions of Don Olmsted, Port Program Manager, Department of Natural Resources, for his commitment to the partnership between ports and the department. Copyright © 2003 Washington Public Ports Association PO Box 1518 Olympia, WA 98507 360-943-0760 www.washingtonports.org This document may not be reprinted or published without the consent of the WPPA. WPPA Port Management Agreement (PMA) Handbook Table of Contents Introduction...........................................................................................i 1. An Overview of Port Management Agreements .............................1-1 Term of the PMA...................................................................................1-2 Exhibits and Maps ................................................................................1-3 Delegation of Authority..........................................................................1-4 Use Planning and Port Regulations.........................................................1-5 Leases..................................................................................................1-5 Audits and Compliance.........................................................................1-6 Amendments and Supplemental Provisions..............................................1-6 Disputes...............................................................................................1-7 General Provisions................................................................................1-7 2. Responsibilities of the Port...............................................................2-1 General Use Notices.............................................................................2-1 Leases..................................................................................................2-3 Exhibits ................................................................................................2-4 Acceptable Surveys Standards................................................................2-4 Insurance .............................................................................................2-6 Material Sales.......................................................................................2-7 Environmental Management ..................................................................2-7 Additional Reporting and Notice ............................................................2-11 3. What Property is Eligible for a PMA.................................................3-1 Adding Property to a PMA .....................................................................3-1 Additional Details of Adding Property with a 1995 PMA...........................3-3 Removing Property from the PMA ...........................................................3-3 Leasing State-owned land if a PMA is not available .................................3-4 4. Improvements and Fills ....................................................................4-1 Improvements.......................................................................................4-1 Fills......................................................................................................4-3 5. Calculating Rent................................................................................5-1 Water-dependent Uses..........................................................................5-1 Nonwater-dependent Uses ....................................................................5-1 Determining the Type of Use..................................................................5-2 Calculating Water-dependent rent..........................................................5-5 Rate of Return.......................................................................................5-6 Rent for Filled Land ...............................................................................5-6 Rent for Public Access............................................................................5-7 Rent for Habitat Mitigation.....................................................................5-8 WPPA Port Management Agreement (PMA) Handbook Table of Contents Calculating Nonwater-dependent Rent ...................................................5-9 Determining Full Fair-Market Rental .......................................................5-9 Appraisal Methodologies.......................................................................5-10 Multiple Uses........................................................................................5-12 Log Booming and Storage.....................................................................5-13 Rent Example 1.....................................................................................5-15 Rent Example 2.....................................................................................5-20 6. Marinas ...............................................................................................6-1 Finding the Boundary ............................................................................6-1 Reporting Spills.....................................................................................6-1 Liveaboards..........................................................................................6-2 7. Compliance & Audits ..........................................................................7-1 Audits by the State Auditor’s Office.........................................................7-1 Management Assertions Letter................................................................7-2 Audits by the Department of Natural Resources .......................................7-6 8. Disputes...............................................................................................8-1 Dispute Resolution Table .......................................................................8-3 WPPA Port Management Agreement (PMA) Handbook Table of Contents Appendices: Appendix A. 1995 Port Management Agreement.................................A-1 Appendix B. 1984 Port Management Agreement................................. B-1 Appendix C. Aquatic Lands Laws and Regulations...............................C-1 Appendix D. Finding Alternative Parcels ..............................................D-1 Appendix E. Lease Checklist ............................................................... E-1 Appendix F. Port Notice Checklist........................................................ F-1 Appendix G. DNR Notice Checklist.......................................................G-1 Appendix H. Explaining a PMA to a Tenant .........................................H-1 Appendix I. Sample Assertions Audit Letter...........................................................I-1 Appendix J. Checklist for Adding Property ............................................................ J-1 Appendix K. Guidance for Water-dependent and Nonwater-dependent .......K-1 Rents Aquatic Lands Laws and Regulations may be found at www.access.wa.gov WPPA Port Management Agreement (PMA) Handbook Introduction Port districts have been given the legal authority to manage certain aquatic lands that are owned by the state. These aquatic properties abut uplands that are owned, leased or managed by the port. The details of this management respon- sibility are set forth in a Port Management Agreement (PMA). The PMA is a document signed by both the port and the De- partment of Natural Resources (DNR). The port manages these state-owned aquatic lands using the state’s aquatic land management laws and regulations, in addition to the regular laws that govern port operations. The port and the DNR must work together to blend these state laws and regulations with the port district’s powers and re- sponsibilities. This requires the port to be aware of two basic concepts: • The port has taken on the responsibility as the land manager for the people of the state of Washington. The port must strive to provide a balance of public benefits for all citizens of the state. • The general goals of state-wide aquatic land manage- ment are to: encourage direct public use and access, foster water-dependent uses, ensure environmental protection, and utilize renewable resources. Generat- ing revenue consistent with these goals is considered to be a public benefit. These responsibilities are not a new concept in port manage- ment. The very idea of creating port districts sprang from the desire, almost one hundred years ago, to give the public a tool to buy back and control the harbors that had been sold to private interests. i WPPA Port Management Agreement (PMA) Handbook Ports must also remember that nonwater-dependent uses of state-owned aquatic land are allowed, but they are not pre- ferred. When a port district accepts the management of state-owned aquatic land, the port also accepts a number of day-to-day responsibilities. These include leasing and collecting rent, as well as notifying the state of changes in use