Marina Matters

David Camp is a CPA in private practice by trade and a sailor by inclination. He writes a monthly installment of Portknocker Notes for Whatcom Watch.

Portknocker (noun, slang): artisanal miners typically operating without permits.

Portknocker Notes are a collection of port-related thoughts, facts, ideas and random complaints from your faithful Port of Bellingham reporter. The opinions in this column do not necessarily reflect those of Whatcom Watch.

The Port of Bellingham Commissioners approved revised moorage rates for Blaine and Squalicum marinas at their Feb. 15 meeting. Whereas the existing rates were based on slip length, the revised rates are calculated on the basis of the actual area of the slip, phased in over five years. In addition, the schedule includes a reduced rate for the commercial fishing fleet in order to support this component of the county’s economy.

What is motivating this adjustment to moorage rates? In a word, equity. Under the current moorage rate system, the smallest slips bear the highest rates and the largest slips the lowest based on area. And the lowest rates of all are paid for boathouses, which occupy the largest space of all slips (because of additional pilings required) and pay the lowest rate per square foot.

The port is taking the commendable step of moving toward equalizing the rates paid per square foot, phasing in these adjustments over five years. In addition, the Port is attempting to support the local fishing industry by freezing the rates for commercial fishing boats. This is refreshing in a nation where the economic system is slanted to benefit the largest and richest, and imposes the heaviest burden on the smallest and poorest.

For example, consider the bailouts of the largest banks, effectively subsidizing the bonuses of those whose greed and hubris created the financial meltdown in the first place, and contrast it to the paltry afterthought of mortgage adjustments for the victims of the massive Ponzi scheme that was the subprime mortgage swindle.

Not only were no penalties assessed for the architects of this scheme, and their corrupted network of brokers, rating agencies, underwriters, and banks, but they were rewarded with public treasure in amounts unparalleled in the nation’s economic history. In fact, it was announced in late January that Mr. Lloyd Blankfein, CEO of Goldman Sachs, will receive a $12.1 million bonus and a 300 percent raise in base pay — not bad for a corporate welfare bum who needed the government to bail out the business he had bankrupted.

Consider also the regulation of publicly-traded companies by the SEC. After the criminal fraud of Enron, enabled by a corrupted public accounting firm, newly-introduced Sarbanes-Oxley legislation imposed heavy additional reporting, auditing and certification requirements. The net effect was to make it so expensive to raise public money that none but the largest can do so.

Venture capital in this country is mostly raised privately for this reason, and public venture capital is increasingly raised abroad. In 2010, for example, only 18 percent of global IPOs were in the U.S., the lowest percentage ever recorded. In addition, almost two-thirds of public capital for exploration stage mining worldwide is raised on the TSX Venture Exchange in Vancouver, B.C. where regulation is more sensible and compliance costs are not prohibitive for new ventures.

Back to the moorage rates, the accompanying tables (above) show the moorage rates approved by Port Commissioners on Feb. 15. The first table (at top) shows the rates per lineal foot by length class, adjusted so that by 2015 the rates are equalized (more or less) per square foot. The one exception is commercial fishing boats, whose rates would be fixed to equal the lowest rate charged.

The other table shows the annual percent increases required to get to “equality.” Note that the rates for the smallest slips would remain constant for the next five years, whereas the rates for larger slips would increase by varying percentages over the next five years. The smallest slips will still pay the highest rate, and the largest the lowest rate per square foot since the formula used only takes into account only half of the width occupied.

It’s good to see the port correcting inequity in moorage rates, and supporting fishermen. However, the more than 100 fishermen and related tradesmen who turned up in force at the Port Commission meeting Feb. 15 complain their moorage rates are still higher than Seattle’s.

A motion by Commissioner Michael McAuley to subsidize active commercial fishermen’s rates to $5.39 per foot (equal to Seattle’s) was punted by the Port Commissioners to the next meeting. They did try to dump it in Executive Director Charlie Sheldon’s lap, who successfully ducked this no-win task while frantically whispering with Port of Bellingham Attorney Frank Chmelik. Quite amusing and a testament to the power of the fishermen’s association. Nice work, Doug Karlberg! §