PORT ANGELES — The Harbor-Works Public Development Authority Board of Directors on Wednesday tabled a decision on contracting with former Port Angeles City Manager Mark Madsen as a consultant.
The unanimous decision followed a motion by board member Bart Irwin, who felt that the proposed contract went beyond the work he expects a consultant to be responsible for.
Irwin, a retired attorney, also voiced concern that the proposed rate of $225 per hour proposed by Madsen was far more than the $160 hourly rate he is charging the city of Port Angeles for consulting services.
“I think we should table it and bring it back when we have the city’s contract with [Madsen],” he said.The other four Harbor-Works board members agreed.
Jim Haguewood, Harbor-Works interim executive director, said he did not know why Madsen would charge Harbor-Works more than the city.
The board decided to seek a consulting contract with Madsen at its Sept. 17 meeting.
Orville Campbell, former Port Angeles deputy mayor and board chair, said Madsen, as one of the architects of Harbor-Works, could assist the board in working with the community and stakeholders in the cleanup of the former Rayonier Inc. pulp mill site.
The proposed contract presented to the board on Wednesday stated that Madsen would work for Harbor-Works between 30 and 45 hours a month for the nine-month period.
The contract also said Madsen would be responsible for coordinating a discussion on the Rayonier site with Pacific Northwest Labs and Peninsula College, assist Harbor-Works on engaging and informing the public, and advising and accompanying Harbor-Works representatives in stakeholder discussions and meetings.
Irwin said some of those responsibilities would conflict with the role of a permanent executive director that the board plans to hire on Dec. 1.
Madsen, who left his position as Port Angeles city manager on Aug. 29, has yet to be used for the consulting services the city has contracted with him, interim City Manager Jerry Osterman said.
Madsen’s contract with the city states he can be paid up to a maximum of $31,200 — at a rate of $160 an hour — to provide periodic advice to Osterman until a replacement is hired.
Haguewood said the proposed contract was drafted from several conversations he had with Madsen.A revised contract will be presented to the Harbor-Works board at its next regular meeting Nov. 5.
During the public comment period of Wednesday’s meeting, Norma Turner and Shirley Nixon, both of Port Angeles, told the board that they have filed a request to the state Auditor’s Office that Harbor-Works be audited for what they said is a lack of transparency and a violation of open government laws.
“The ultimate nature of what I call ‘insider trading’ — others refer to it as ‘the good old boy network’ — is alive and well in this [public development authority],” she said, referring to the proposed contract with Madsen.
“Ironically, the same person that created [Harbor-Works] behind closed doors is now being hired to open it up.”
Board members Karen McCormick, CEO of First Federal, and Howard Ruddell, owner of Ruddell Auto Mall, said they wouldn’t be opposed to a state audit.
“We welcome that if it helps her and other people fell more comfortable,” Ruddell said.
Harbor-Works is funded by $300,000 in the form of two $150,000 loans — one from the Port of Port Angeles, approved by its board of commissioners on Aug. 11, and the other from the city, approved by the City Council on Aug. 19.
Haguewood — who is also the director of the Clallam County Business Incubator and the former head of the Clallam County Economic Development Council — was nominated by Madsen for the interim executive director position.
He was hired by the board to serve as interim director from July to August for $8,000.
The board extended that contract for 75 days for $7,500 at its Sept. 3 meeting.
A bank account for Harbor-Works has been set up at Kitsap Bank, but the funds have not been deposited because a financial system for public entity is still in the works, Haguewood said.
He said he hopes to have that sorted out by the next meeting.
Haguewood said Harbor-Works may contract with Steve Marcotte, former Tacoma city finance director, to assist them in that effort.
Marcotte, Haguewood said, comes highly recommended by the state Auditor’s Office.
The board voted unanimously to hire Bill James, Port of Port Angeles finance director, to act as treasurer for Harbor-Works.
The decision needs port commission approval for it to be finalized.
If the financial system is in place, the board will consider authorizing Haguewood to place funds into the account.
The board voted unanimously to hire Robert Tulloch as Harbor-Works’ attorney, a position the board has budgeted for $1,500 monthly.
Haguewood said several attorneys in the Port Angeles area were interviewed for the position.
The board also voted unanimously to hire Karen Kilgore of Sequim to act as the public records clerk.
Kilgore, who was hired through Express Personnel Services, will be paid $23.58 hourly, Haguewood said.
The board also decided at the meeting to meet with representatives of Rayonier on either Oct. 22 or 24.
The representatives are already expected to be in Port Angeles on Oct. 23.
Harbor-Works was created by the city and the port in May to help direct cleanup and future use of the Rayonier mill site.
________Reporter Tom Callis can be reached at 360-417-3532 or tom.callis@peninsuladailynews.com.
