Olympia Community Responds to City Sea Level Rise Report

Olympia Community Responds to City Sea Level Rise Report

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Above: A high tide laps at the back door of Bayview Thriftway in downtown Olympia on December 18, 2015. Percival Landing is seen on the right. The tide was 16.2 feet at 10:13 a.m., just about the time this picture was taken.

Community Members Offer Sea Level Rise Comments, Solutions

By Janine Gates

www.janineslittlehollywood.blogspot.com

The underlying message by City of Olympia public works staff to city leaders last week, that sea level rise planning must become incorporated into responsible community conversations and downtown land use decisions, seemed to take councilmembers by surprise.

After all, the message was in conflict with the fact that the council has moved forward on multiple downtown development projects in precisely the area destined to be first impacted by sea level rise.

Disregarding past reports and persistent community voices, the city embraced the massive 123 4th Avenue housing project, and allocated $250,000 to form a downtown strategy. That money came from 2014 year end savings and is anticipated to be adopted at the end of 2016.

To encourage new development, the city recently hired an economic development director, and is hammering out a downtown Community Renewal Area (CRA) plan. Begun in 2013, the effort now needs $40,000 more to complete its work with its legal consultant. The city also approved $35,000 for developer Walker John and his company, Urban Olympia, to scope out a plan of work for the aptly named Water Street Redevelopment Area.

The total CRA budget revised for 2016: $342,500.

In an oral staff report provided to the city’s Community and Economic Revitalization Committee (CERC) on February 8, it was noted that the same developer is moving quickly in his efforts to develop the parcels owned by the Port of Olympia bordering State and Cherry Street, across from the Hands On Children’s Museum. Concept plans have already been drawn up by architect Ron Thomas.

As the council subcommittee bantered around their work plan goals, questioned whether or not a CRA is really needed given the fact that the economy is moving, and welcomed the planning of two developer roundtable discussions specific to the downtown strategy by the end of March, the words “sea level rise” were never spoken.

Above: Walking along Percival Landing near Sylvester Street on December 18, 2015, electrical boxes and lighting components behind the Oyster House are clearly submerged by Budd Inlet. The tide was 16.2 feet at the time this picture was taken. 

Community Efforts and Responses to Sea Level Rise Report

Given downtown Olympia’s proximity to Budd Inlet, the sheer amount of engineering that needs to occur to prepare downtown Olympia for climate change and sea level rise is almost unimaginable.

But some South Sounders have offered their expertise, thoughts, and solutions on the matter for years.

Following the sea level rise report delivered by staff to Olympia city council on February 9, community member and economist Jim Lazar issued a few ideas during public comment period.

“Aberdeen and Hoquiam require all new buildings in their downtown areas to mound up their building sites at least three feet. We can do that here. Some people have said that we will not abandon downtown. If that’s what you believe, start budgeting like you mean it. The engineered response to sea level rise will cost tens of millions of dollars.”

Saying he was the part owner of a downtown business, he requested that the council poll downtown business owners to see if they were willing to approve a two million per year local improvement district or diking district levy to start paying for this.

“…But if the owners of these buildings are not willing to invest what it will cost to protect their investment, maybe that tells us something. If asked…I would vote no unless there was some certainty that a long-term plan was in place, adequately funded, and likely to succeed. A reasonable plan would be to impose a development moratorium on the low-lying parts of downtown until a plan is perfected, and funding is assured,” said Lazar.

Community member Daniel Einstein immediately submitted a letter to councilmembers, taking issue with staff comments that without the dam, the lake would flood more frequently.

“An important question is, how do we translate those 2007 Capitol Lake Adaptive Management Plan (CLAMP) report findings ten years down the road when sea-level rise must now be considered inevitable? There is no perfect translation of course, but here are a few things to consider,” he wrote.

“First, as sea-level rises, the 5th Avenue dam will become inoperable. Tides will flow back into the basin no matter what we do. In other words, given the forecasts…the dam will not be relevant. Second, a lot has changed from a regulatory point of view since the dam was constructed. There is no way a new, higher dam would ever be permitted, even if it could be engineered.”

“An additional point to be considered is that the lake is filling up rapidly with sediment. As it does, its capacity to hold water decreases making flooding more likely. This was the Deschutes Estuary Feasibility Study’s (DEFS) conclusion. If the estuary were restored there would be more capacity for the rising sea - more room for the waters to flow.  As it is now, there is no depth in the “lake” and a dam plugging up the system. However, when the DEFS was done sea-level rise was a less thought of phenomenon….

“I do believe this is an issue that we should look into further as we decide what and where to protect and how to pay for it. It is also something to consider as we decide the future of the isthmus,” wrote Einstein.

Sue Patnude of the Deschutes Estuary Restoration Team (DERT), a local nonprofit, also weighed in:

“....The lake is getting shallower and shallower, eliminating its capacity to hold water, and the dam is in disrepair. Constant repair and money will be needed to monitor the ability of the dam to function in the future. It is old, and should it fail in a closed position, flooding will be inevitable.”   

Patnude said the state Department of Enterprise Services (DES) has proposed $500,000 in its capital budget for routine inspections of the dam and upgrades to the service life of the facility within the resources provided. The dam was built in 1951.

Above: Roger Horn stands on Percival Landing near Bayview Market on December 18, 2015. The tide, at the time this picture was taken, was 16.2 feet. The high tide for December was 16.4 feet. Percival Landing was constructed in three phases in the 1970s and 1980s.

Upon hearing the report, Roger Horn, a former, longtime member of Olympia’s Planning Commission, became concerned about whether or not the 30 foot setback as stated in the city’s new Shoreline Master Plan is going to be enough for new construction.

“In terms of possible solutions, I’d prefer on-shore berms to bulkheads or seawalls….The first thing that came to my mind was the Percival Landing replacement project and how that project will address sea level rise since super high tides already come within inches of businesses at Fourth and Water Street,” he told Little Hollywood.

Phase two improvements for Percival Landing are slated for the area around Water Street and the Oyster House restaurant, near The Kiss statue. To ensure continued progress towards the replacement of Percival Landing, the city’s current capital facilities plan budgets $199,000 for design efforts, to be spent in 2016. Actual initiation of the project is not scheduled to occur for several years.

TCAT Survey Reveals Possible Local Solutions

Another non-profit, the Thurston Climate Action Team (TCAT), recognized the risk of sea level rise to the city, and inventoried greenhouse gas emissions in Thurston County and its cities.

Recently, TCAT led a detailed survey of attitudes within the county on energy and climate change and the willingness to address it financially.

One survey question asked, “If nothing is done to reduce global climate change, how serious of a problem do you think it will be for Thurston County—very serious, somewhat serious, not so serious, or not serious at all?”

Combining the “very serious” and “serious” responses, 76 percent of respondents believed there will be serious local consequences for not addressing climate change.

Respondents were asked about their willingness to personally contribute money for renewable energy and energy conservation projects and what kind of taxing mechanism they would prefer for financing those efforts. Dollar ranges were provided as options. 

Over 75 percent of respondents indicated they were willing to pay something to promote renewable energy and energy conservation, and a solid majority, nearly 69 percent, were willing to pay at least $10 per year.

Another surprising result was the number of people willing to pay over $60 per year. Among those willing to contribute, the highest number, nearly 22 percent, indicated they would pay over $120 per year. To generate those revenues, nearly 63 percent mentioned they would support a tax increase of some sort.

“This creates an opportunity for local governments (county, city, PUD, Port and others) to coordinate a county wide effort to encourage and incentivize the use of clean energy. A reasonable next step toward creating a county-wide clean energy program would be a collaborative design effort led by local government, completed in a relatively short period of time,” says the report.

The report was completed in September 2015 with financial support from Thurston County and LOTT Clean Water Alliance and faculty participation by The Evergreen State College, Saint Martin’s University, and South Puget Sound Community College.

Tom Crawford, vice president of TCAT, is leading the Climate and Clean Energy Work Group within Thurston Thrives. Thurston Thrives is the county Board of Health's initiative to engage the community in taking action to improve the health of Thurston County's population. The environment is one of the nine key areas. 

“These survey products become resources to form a solid foundation for local solutions,” said Graeme Sackrison, former mayor of Lacey and board chair of TCAT.

Upcoming:

For more information about the City of Olympia's Downtown Strategy, go to www.olympia.wa.gov/DTS. On Saturday, February 20, 2016, 9:30 a.m. - noon, at the Olympia Center, 222 Columbia Street NW, the city is sponsoring a workshop to evaluate downtown strategy proposals about the mix and areas of emphasis for downtown residential, retail, entertainment, and more. All this planning takes on a new meaning in light of the sea level rise report.

Community Discussion of Climate Crisis Actions, Sunday, February 21, 2:00 p.m. - 4:00 p.m, United Churches, Fireside Room, 11th Avenue SE, Olympia. The event is sponsored by the Olympia FOR Climate Crisis group, who welcomes new people to the movement to address climate change.

For more information about Thurston Thrives, go to www.thurstonthrives.org. Its next meeting is February 29, 3:00 p.m. – 5:00.p.m., Thurston County Courthouse. 

For more information about the Thurston Climate Action Team’s work, go to www.thurstonclimateaction.org.

For past stories about the City of Olympia's sea level rise report, Capitol Lake, high tide pictures in 2010 and 2012 around Percival Landing, the Community and Economic Revitalization Committee (CERC), and more, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search button.

Zita Sworn In As Port of Olympia Commissioner

Zita Sworn In As Port of Olympia Commissioner

WPPA  

Above: E.J. Zita, left, was sworn in as a new Port of Olympia commissioner by Thurston County Auditor Mary Hall at the Thurston County Courthouse on Wednesday morning. Although she trailed opponent Jerry Farmer on election evening, Zita gradually pulled ahead for a final lead of 227 votes out of a total of 52,659 votes cast, not counting write-ins. A machine recount of the ballots is not expected to change the outcome of the election, said Hall.

Interview with Port Commissioner Zita 

By Janine Gates

www.janineslittlehollywood.blogspot.com

With the Thurston County elections certified on Tuesday, E.J. Zita was officially sworn into office as a Port of Olympia Commissioner by Thurston County Auditor Mary Hall on Wednesday morning.

After her swearing-in, Hall congratulated Zita and remarked that the final election numbers that gave Zita the eventual lead over her opponent, Jerry Farmer, was not typical.

“Typically, the numbers don’t flip…. In the port race for Position #1, George Barner gained 2.93% between election night and certification, and the Metropolitan Parks District ballot measure in Olympia gained about two percent, as did this port race. I can’t verify it as fact, but I heard that it was because of this race, that people waited until the last minute to vote,” said Hall, still studying the statistics.

Although a machine recount will occur, the results are not expected to change the final outcome.  Zita said she will participate in Thurston County’s formal swearing-in ceremony for all newly elected and re-elected officials on Wednesday, December 30, 2:00 p.m. – 3:00 p.m. at South Puget Sound Community College, Kenneth J. Minnaert Center for the Arts. The event is open to the public.

In a prepared statement, Zita said, “Voters had a clear choice in this Port Commission election.  Our campaign was supported by hundreds of small contributions and great volunteers - people who care about public resources, open public processes, and a sustainable future.

“....Working together, we can improve port operations, relations with the public, our bottom line, and the environment.  I am already working with good port staff, and I look forward to productive service with my fellow Commissioners….From day one, I will insist that all port business be open and transparent, that the Port Commission is financially accountable, and that we approach development in a smart, sustainable way,” she said.

 

Zita said that the first thing she'll do as a new port commissioner is her homework.

“I'm already working with staff to get up to speed on issues, and I'll be doing a lot of reading and research as I step into this role,” she said.

Zita is fulfilling the term held by former port commissioner Sue Gunn, who resigned due to health reasons. Michelle Morris was appointed to the position in June and served until Monday, November 23. Zita will be up for election again, if she chooses to run, in 2017, as will current Port Commissioner Bill McGregor.

The next meeting of the Port of Olympia is Monday, December 14, 5:30 p.m., at the Port of Olympia offices at 626 Columbia St. NW, Suite 1 – B, Olympia.

Washington Public Ports Association Training

Interviewed after her swearing-in, Zita said she participated in the Washington Public Ports Association (WPPA) training in Seattle last week. 

Asked if she learned anything new or particularly enlightening, she said that the training emphasized that Port Commissioners should hold all discussions in public, welcome all public comment, and televise all sessions. 

“Ports have two complementary missions - economics and public good….Whatever actions ports take, the WPPA explained the importance of sharing our reasoning with the public on all processes and decisions.  We should even publicly recap conversations held in “executive sessions,” which are private because of sensitive content. 

“All of our material should be posted online - people should not have to ask for it.  WPPA advises that the perfect citizen - someone who attends every port meeting and reads all the information - should never be surprised by our decisions, because we have been open about everything going into them.  Citizens should always be treated with friendly respect, and given ample time to testify, whether it is on our agenda or not, even if it makes meetings run long.  Good relationships with the public are one of the highest priorities for the WPPA.

“The WPPA provided legal and ethics training, which I got certified in.  A quorum of commissioners may not “meet” for coffee, on the phone, by email, etc. except at commission meetings.  If we find ourselves at public events together, we cannot talk business.  It's legal to carpool to events together, but it may not be a good idea.  And all port correspondence is subject to public records requests - so I will keep mine on port-issued devices,” said Zita.

A Few More Questions

Little Hollywood also asked Zita about her role as chair of the Thurston County Agriculture Advisory Committee.

Zita says she will remain chair of the Thurston County Agriculture Advisory Committee, which advises the county commissioners on current issues. She said her work on food production, farming and other agricultural issues will be complementary to her new position at the port. She said that the group recently drafted a new urban agriculture ordinance which is expected to be presented to the Board of County Commissioners by the beginning of 2016.

“We’ve been working a couple of years to make the ordinance for farming in the urban growth area more consistent with Lacey, Olympia and Tumwater ordinances. In some cases, it is currently more restrictive to farm in the county. We’ve worded it in such a way that makes farming in the areas of beekeeping, poultry, and rabbits in the urban growth area flexible and easier overall,” said Zita.

The group will also be delving into the issue of industrial hemp.

Asked what she thinks about recent conversations during port meetings about daylighting Olympia’s Moxlie Creek, which runs under city streets and exits through a pipe into East Bay, Zita said, “(Olympia resident) Harry Branch and others make good arguments that a Moxlie Creek estuary could effectively remediate contaminants such as nitrates in the creek, while restoring ecosystem services and a valuable recreation resource.

“I would like the Port to start climate planning with the City of Olympia, the state Department of Ecology, and the Thurston Regional Planning Commission. The City of Olympia is a leader in climate change planning and the port needs to know what’s coming. The possibility of remediating contaminated streamflow with a restored wetland in that area should be reviewed as part of that process.”

Zita said she welcomes the public’s suggestions for drafting proposals on the process.

Earlier this month, Zita also answered a few quick questions on emerging port issues:

Little Hollywood: What is your opinion of the code of conduct resolution (then before the commissioners), and would you vote and sign for or against it?

Zita: I agree with Port Commissioner George Barner, and with the public comments made by Bev Bassett, Denis Langhans, Monica Hoover, Jan Witt, and Sharron Coontz.

LH: Can you foresee any situation in which you might want to disagree with what another port in Washington is doing and offer them your opinion, as Commissioners Barner and Gunn did with their letter to the Grays Harbor/Hoquiam ports and their roles in the status of the oil terminals? 

Zita: Commissioners Barner and Gunn took a courageous stand.  More Pacific Northwest ports will be called on by the people to stand as a "thin green line" between extreme fossil fuel extraction and dangerous shipments to Asia.

LH: How would you have voted on the building of another warehouse for the storage of ceramic proppants and other shipments requiring shelter? Would you be interested in revisiting this issue as a new commissioner?

Zita: No and no.  The current warehouse is mostly empty.

LH: In a February 22, 2015 article on my blog, I wrote about a Port work session topic, the re-creation of a "Berth 4." At the time, it was billed as an "information only" discussion, but staff is spending time analyzing its feasibility. Do you have an opinion about the creation of a Berth 4?

Zita: I haven't read that article yet....

LH: Do you feel port work sessions should be televised?

Zita: Yes.

Above: According to the Port of Olympia, the channels on port property parcels 2 and 3 near State Street as seen here on November 20, are directing stormwater flow to remain on the two parcels, rather than allow it to flow out to the sidewalk and into the City of Olympia storm drains. 

“It is a requirement of the state Department of Ecology that we keep the stormwater on site, since Parcels 2 and 3 are within the boundary of the East Bay Redevelopment Cleanup Site,” said Kathleen White, Port of Olympia, on Wednesday. 

Port of Olympia Commissioners McGregor, Barner and Morris voted on Monday night to move forward with a mixed use development agreement with developer Walker John on this property near East Bay and State Street in downtown Olympia. Commissioner Barner voted no.

Harry Branch, an Olympia resident and retired captain of fishing, charter and research vessels with a Masters of Environmental Studies from The Evergreen State College, commented at a recent port meeting that a mixed use development on this location places significant limitations on the option of restoring or daylighting Moxlie Creek.

Branch believes that development of this property is a violation of the Clean Water Act because the parcels are likely an uncontrolled source of dioxin. He has offered the commissioners a detailed alternative for the site that would environmentally clean up and restore the historic estuary to a functioning ecosystem.

Commissioner Barner expressed an interest in having a work session on the topic and extended an invitation to Branch to further educate the Commission.

For more information about Port of Olympia activities, go to www.portolympia.com.

For past stories about the Port of Olympia issues at Little Hollywood, go to www.janineslittlehollywood.blogspot.com and type key words, issues, and names into the search button.

Correction/Clarification Added November 27: Commissioner Barner voted no and Commissioners McGregor and Morris voted yes on the developer agreement with Walker John. Little Hollywood explained who was on the commission at the time of the vote to approve the agreement, but neglected to state Barner's vote. 

Port of Olympia candidate E.J. Zita Applies for Seat on Commission

Port of Olympia candidate E.J. Zita Applies for Seat on Commission

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Above: E.J. Zita has applied for appointment to Port of Olympia position #3, previously held by former commissioner Sue Gunn. Zita will also file this week for election to the position.

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

E.J. Zita, best known as Zita, has applied for appointment to Port of Olympia position 3 previously held by former commissioner Sue Gunn.

Zita submitted her application by the May 8 deadline and said she will also file for election for the permanent position. The filing deadline for that process is May 15.

As reported in The Olympian on May 9, local radio station sales manager Jerry Farmer has also applied for the appointment and will seek election to the position.

Zita, a 20 year faculty member at The Evergreen State College with a PhD in Physics, teaches and researches energy physics, solar magnetism, sustainability, and climate change.  She also serves as chair of the Thurston County Agricultural Board and is vice president of her Salmon Creek Basin neighborhood association.

Zita’s application to the port lists extensive recent grant-supported research collaborations, published papers, presentations, and leadership activities, all indicating a forward-thinking vision.

“Serving as a commissioner on the Port of Olympia is an opportunity to advance goals that are shared by Thurston County citizens and the port. Sustainable development and environmental responsibility can be profitable, provide jobs, and protect our future. Open processes and responsive public relations can facilitate useful exchanges of ideas, reduce legal challenges, and restore public trust. I have the vision and the skills to help the port reach these goals,” Zita states in her application.

Zita was directly recruited by some supporters of former commissioner Sue Gunn, who recently resigned from her position due to ongoing health issues and says she will carry forth Gunn’s issues of openness and transparency.

Zita also wants change at the port, and for the port to spend public money for the public good and move into the 21^stcentury.

“I have more to learn but I know what my values are. Observing port operations for the last ten years, I know what’s not working and I have a vision for what can work,” she said in an interview at her home this past weekend. Her partner, Nancy Armstrong, owns and operates a health clinic in Olympia and is a 23 year retired veteran of the Army Medical Corps.

Zita, who was first interviewed in 2010 by Little Hollywood about her neighborhood’s relationship with the port, says her concerns about port operations began in her neighborhood about 10 years ago.

Salmon Creek Basin neighbors, concerned about increased air traffic and environmental issues, went to the port in good faith.

“We assumed we could talk about it with them in a neighborly way, but we were soon disappointed. They weren’t concerned. So, neighbors got organized. We had never had an association before….We learned a lot about the public process, appeals, environmental reviews, port finances, and public hearings. We helped pass a sensible warehouse ordinance in Tumwater that helped protect our neighborhood, and here we are, ten years later, and they are trying to get around that law….”

Above: Aerial of the Port of Olympia Marine Terminal and Northpoint taken in December 2014.

Asked how that experience translates to her larger vision for the port, she said the port is not interested in working on smart development that is needed for Thurston County.

“We’re not the only ones who have tried to work with the port….When people go to them and try to talk about these things, their practice is to try and shut them down, hire more lawyers and fight the people who are concerned. I don’t think that’s a good way to use taxpayer money….The port should be using our money for the public good. The port should be listening and working with people for the future and the benefit of Thurston County,” she said.

Zita once applied to be on the port’s citizen advisory committee but her application was not accepted. She is currently serving as an advisory board member on the port’s New Market Industrial Campus and Tumwater Town Center Real Estate Development Master Plan, coordinated by the Thurston Regional Planning Commission.

The port owns about 1,540 acres of real estate in Tumwater. It owns 265 acres of property in Olympia.

“I’m glad they appointed me, but I’ve been on five months now, and while I’d still like to think the citizens on the board can make a difference and do some good, I’m seeing some familiar patterns…and it seems like they have their mind made up about what they want to do,” said Zita. The board is expected to study the issues until November. Their next meeting is scheduled for June 11.

Asked how she would work with the county and the City of Olympia in master planning and environmental efforts, Zita praised the city for its leadership on climate change issues and encouraged stronger relationship with the city.

“We have a lot of good people and great resources and a lot of expertise in the area that we should be tapping into to work together.”

Zita was asked about her position on several specific port issues, such as the possible creation of a Berth 4, the recent purchase of a crane, and the port’s acceptance of ceramic proppants used in the fracking industry.  She said she found out long ago that the port does its own environmental reviews.

“The ports are granted a lot of freedom to do what they want to do without much public oversight... Just because they have that freedom doesn’t mean they should use it without consulting the public, and without consulting the experts. The questions I’d ask (for any of these issues) are: Is it good for the environment, is it good for the economy, is it good for local people, and is it good for the community? The port has made mistakes for not consulting more broadly on its plans and I would encourage the port to consult more broadly before making decisions,” she said.

About the port’s financial accountability, she said, “The port is losing $2 million a year. It has stopped including depreciation in its reporting, but we need more financial accountability. The port resists that. We need to hold the port accountable….They have been very creative in its reporting.…If the port is losing funds on projects that are not benefitting the public, then we need to ask why.

“External environmental reviews are needed – the port is like the fox guarding its own hen house….We need good, careful studies done before the port says, ‘We’re going to do this project and nobody can tell us otherwise.’ If we take a closer look, we can prevent big, expensive mistakes that are going to damage the environment and pay a lot of money down the line to fix it.”

Asked about her vision for the port, Zita said she’d like it to be a food hub. Zita says she recently began a formal collaboration with the Conservation Biology Institute in Corvallis, Oregon to model impacts of climate change on agricultural lands in the Pacific Northwest.

“We can create a bigger Tumwater farmer’s market, and create a place where farmers could bring their food for distribution and processing and value-added products. Farming in the county and urban areas is one the fastest growing segments of Thurston County’s economy…. This can create jobs and support people locally, and contribute to our food security….Renewable energy projects is another idea…it’s an investment in the future,” she said.

The 15 acre Armstrong-Zita ranch is located near port property south of Tumwater. Besides their professional careers, the couple offers organic grass-fed beef each summer, taking orders in spring. They have six Angus-Hereford cattle, born and bred on the farm, and are sustainably rotated on lush pasture. Never fed hormones or antibiotics, the animals are slaughtered on-site. They slaughter about three or four cattle a year, serving about 12 families. They also have fresh eggs from free range hens, 38 meat birds, and three horses. They donate beef, eggs, and cash to the South of the Sound Farmland Trust.

Above: On the farm with E.J. Zita and her horses Rusty and Ada this past weekend.

For more information about the Port of Olympia and the subjects discussed in this article, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and use the search button to type in key words.

For more information from the Port of Olympia, go to www.portolympia.com.

State Divestment in Fossil Fuels Urged by Climate Crisis Activists

State Divestment in Fossil Fuels Urged by Climate Crisis Activists

washington  

Above: People wait in the lobby of the Washington State Investment Board prior to the board's meeting on April 17 in Olympia. Several speakers with a local climate crisis group addressed board members during the public comment period.

 

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

The Washington State Investment Board (WSIB) heard from current and retired state workers, community members, and members of a local climate crisis group during their meeting held April 17.

Speakers were united in their request for Washington State to divest from fossil fuel companies and the companies that serve them.

The WSIB was created in 1981 and has a staff of 79 employees who work in three divisions: Investments, Operations, and Institutional Relations. The board, which accepts public comment at its monthly meetings, is composed of 15 members. All were present during public testimony except for Representative Sharon Tomiko Santos.

Divestment Testimony

Testimony and personal stories from several local citizens did not overlap, providing the board with compelling information and facts about the divestment issue.

Glen Anderson, a member of the Confronting the Climate Crisis group sponsored by the Olympia Fellowship of Reconciliation, said he started working for the state in 1972 and retired in 2006.

“I enjoy my pension and appreciate your efforts to wisely protect it. I understand your responsibility to avoid unnecessary risk,” said Anderson, who mentioned that many cities throughout the United States have divested from fossil fuels.

Seattle divested in November 2012 and by May 2013, 11 cities had committed themselves to divest because of the climate crisis.

Anderson said that during the 1980s, he and other state employees organized an effort they called “State Employees for Socially Responsible Investment” and persuaded the state’s Committee for Deferred Compensation to offer a socially responsible alternative to the regular mutual funds. Anderson said the committee initially assumed that the investments would produce lower returns than the regular mutual funds, but the group convinced the committee that they would be strong.

“The past few decades have proved we were right,” said Anderson.

Retired Ecology state employee Patricia Holm says she depends on her pension. She said that just last week, Archbishop Desmond Tutu added his voice in support of the growing divestment movement and called for an anti-apartheid style campaign against fossil fuel companies, which he blames for the “injustice” of climate change.

Holms asked the group to start the process of divestment now, before stranded assets like the earlier banking crash and real estate and technology bubble takes them by surprise.

“....Then, it could be too late to retain investments. As a pensioner, I care about this….Clean energy is not costly, but inaction is. Costly in terms of lives, livelihoods and economies if governments and business continue to allow climate change impacts to escalate.”

Boutai Hargrove, a retired state employee, urged the board to divest on behalf of her grandchildren’s and their grandchildren’s future. 

Rhonda Hunter, a retired 25 year employee of the state, said that the Intergovernmental Panel on Climate Change recently declared that most remaining fossil fuels must remain in the ground.

As for clean energy, Hunter said Goldman Sachs is declaring the renewable energy sector one of the most compelling, attractive markets, investing $40 billion in wind and solar.

“Goldman says the window for coal globally is eroding and closing rapidly….Bloomberg New Energy Finance says power from wind is now cheaper than power from new natural gas plants….Warren Buffett’s utility company just invested $1 billion in Iowa wind turbines and $5.6 billion to buy Nevada Energy. Are you worried about returns? Aperio Group reports that divesting from the top 200 fossil fuel companies in an indexed portfolio increases theoretical return risk by only .003 %.

“Don’t hope you can just get the industry to clean themselves up – they won’t,” she told the investment board. “Their business plan requires burning five times what the climate can afford.  Please conduct a serious risk assessment to divest our pensions from fossil fuels.”

Donna Albert, a current state employee with 20 years’ experience managing capital construction and a master’s degree in civil engineering, said it is technically and economically feasible to transition away from fossil fuels to 100 percent renewables. She read portions of an open letter written and signed by 93 Harvard University professors addressed to the president of Harvard University asking Harvard to purge its $33 billion endowment of holdings in oil and coal companies.

Stewart Henderson, a current state employee, also addressed the board:

“When the Manville Corporation went bankrupt in 1982, it was the largest corporation ever to go bankrupt in the U.S. Enron stock went for $90.75 per share in mid-2000, then plummeted to less than $1 by the end of November, 2001. 

“Lehman Brothers held over $600 billion in assets when it filed for bankruptcy in 2008.  In each case, a Fortune 500 firm that seemed like a Grade A investment years, months, and even days earlier, suddenly left investors holding pennies on the dollar.  In each case, the corporations were engaging in highly risky economic activity. In each case, they were concealing that risk. And in each case, they were manipulating the political process and public perceptions to further conceal the risks.

“Just as Manville hid the danger and costs of asbestos, and Enron hid its high-risk accounting practices, and Lehman Brothers hid their credit default swaps, the fossil fuel industry is hiding the facts that they are cooking their books with bogus assets, and their entire business model rests on their ability to escape paying for the costs of the externalities they are imposing on citizens, on governments, and on other corporations.

“As fossil fuels continue to drive climate change, the fossil fuel industry is directly contributing to – but not paying for more severe storms, including hurricanes, typhoons, and tornadoes, more severe winter storms across the U.S., increased heat waves, increased drought, increased wildfires, sea-level rise, ocean acidification and, as pointed out recently by Governor Inslee, the increased rainfall which triggered the mudslide in Oso, for the victims of which flags are flying at half-staff throughout the state today.

“As this connection between fossil fuels and the unpaid bills they cause becomes clearer; as alternative fuels become every day more affordable; and as it becomes clearer that – as a United Nations panel recently revealed – three quarters of the assets (the underground reserves) of these fossil fuel companies are completely worthless, because we cannot afford the cost of burning them; with each coming day it will become clearer that the fossil fuel industry is in fact the greatest bubble the world has ever seen. 

“It is the legal and ethical responsibility of this body to examine that risk far more carefully and publicly than it has done to date. Sooner or later, the State Fund will be unloading these stocks.  Let’s do it today, at the top of the market, not years, or months, or days from now, at pennies on the dollar. We can’t afford the risk.” 

Rozanne Rants, spoke to the board in poetic terms:

“I will just add a few grace notes to the sad symphony of possible futures you have heard here this morning…. I do not expect you, individually or as a group, to make a quick decision about this question. The question: shall we, must we, can we, choose to cut off support to companies who profit greatly, while doing great damage to the earth, by mining and selling fossil fuels….Maybe the best thing we can do is listen to the quiet voices of those who have moved through denial, fear, and despair, and now sing songs of hope.”

Bernie Meyer, who portrays Mahatma Gandhi throughout the United States and India, said he is not a retired state employee, but worked in human services during his working career, and has his retirement fund in a socially responsible PAX world mutual fund account.

“Passover is this week, when Jews liberated themselves and it’s the Holy Week for Christians, celebrating Jesus giving away his life for humanity. These events represent growth. Like Gandhi, we must live by truth and express it with love. In our time…we are experiencing….climate change.”

Board Response

Board Chair, State Treasurer James McIntire thanked those who appeared before the board.

“We do listen and take this matter to heart. We operate here as fiduciaries, to produce the highest return with minimal risk. We do belong to a number of organizations that try to understand the risks associated with standard assets, and I think we will continue to review your comments, investment patterns and portfolios and how we move forward as investors.

“As a policy, the board has not supported divestment for several decades…so from that perspective, we will be doing our own self-reflection.”

Prior to the group’s testimony, Liz Mendizabal, institutional relations director for the Washington State Investment Board, explained the board’s position on divestment to members of the Confronting the Climate Crisis group in a letter on April 9:

“....You may be interested to know that the WSIB is a member of the Boston-based Ceres, a coalition of investors and companies that advocate for sustainable business practices, as well as several other organizations working on long-horizon investment issues. These include the Millstein Center for Corporate Governance, the International Centre for Pension Management, the Council of Institutional Investors, and the Asian Corporate Governance Association. The priority of all of these organizations is to help investors better understand the risks associated with short-termism, how responsible or poor governance impacts investment returns, and the risks posed by potential stranded assets.

“Through our corporate governance program activities, coalitions with other funds, and participation in the organizations mentioned above, we believe divestment from the fossil fuel industry would not be wise or effective as a means for the WSIB to advance progress towards addressing climate change. The most productive and meaningful strategy for the WSIB as a large institutional investor and shareholder at this time is to use our influence to actively engage with fossil fuel and other companies whose practices have come into question to encourage them to place a higher priority on transparency, mitigation, and implementing strategies focused on the long term that will be good for shareholders, the environment, and all concerned.

“We appreciate hearing your perspectives and value your concerns and suggestions.”

Group Letter to Governor Jay Inslee

The Confronting the Climate Crisis group wrote and presented a letter to Governor Inslee in February urging him to place a moratorium on all new permits and infrastructure for fossil fuels in Washington.

The group has a meeting with an aide to the Governor to discuss the issue in early May.

For more information about the Washington State Investment Board, go to: www.sib.wa.gov or call (360) 956-4600.

For more information about the Fellowship of Reconciliation’s Confronting the Climate Crisis group, go to: www.olympiafor.org.

Above: Pictures of Washington State Investment Board members hang in the lobby of the agency.