Fred Hill Materials, county at odds over consultant

By Allison Arthur, Leader Staff Writer

Jefferson County Commissioner David Sullivan said Monday he wanted to correct a mistake concerning how an environmental consultant was treated by the county.

Fred Hill Materials Inc. (FHM) Project Manager Dan Baskins said Sullivan made a mistake and commissioners have violated the county's laws.

At Sullivan's suggestion, commissioners voted unanimously July 9 to rekindle talks with Wheeler Consulting Group of Bellingham, a consultant FHM had informally rejected a year ago to do an environmental impact statement (EIS) on a controversial pit-to-pier project at the Shine Operations Hub along Hood Canal.

The board directed county staff to ask if Wheeler still is interested in doing the EIS.

That action prompted Baskins to jump out of his seat Monday and advise Department of Community Development Director Al Scalf personally that the sand and gravel mining company would suspend a contract the county and the company had signed July 2.

"I really don't understand the problem Fred Hill Materials has with Wheeler. They really haven't made it clear," Sullivan said. "People want the assurance the EIS is going to be a good one and will address all their concerns. There are a lot of concerns about this project."

Baskins said commissioners overstepped their authority Monday, and a letter to commissioners the company sent later that day contends the board violated its own laws and policies on how contracts are approved.

"They've gone well out of bounds. This is an administerial function that was clearly defined by their ordinances and procedures, and to violate those procedures says they think they are above the law when it's their duty to uphold the law," Baskins said July 10.

With little fanfare or discussion on July 2, FHM agreed to pay for an EIS. The EIS is considered a county document even though FHM pays for it.

The project has been on hold because of a stalemate between the county and FHM over hiring an independent consultant to write an EIS.

DCD recently recommended hiring GeoEngineers Inc. of Redmond after going through a second round of interviews with consultants. FHM had objected to the selection of Wheeler Consulting Group, and that company declined to be re-interviewed in the second go-round this year.

A contract with GeoEngineers was to be signed July 9 by commissioners as a routine matter.

Not routine

The discussion that followed was anything but routine.

Sullivan opened the discussion by saying he thought signing a contract with GeoEngineers to do the EIS was premature because Wheeler Consulting Group had been chosen in an earlier process and the county had not "come to closure" with that firm.

"This is the last chance to correct any mistakes. I just don't feel like the process has been a good one," Sullivan said.

Sullivan made a motion to direct DCD staff to "get closure" with Wheeler first. Commissioner John Austin seconded Sullivan's motion for the sake of discussion.

A review of the two-year history of delays - including an airing of differences between top county officials - ensued.

County Administrator John Fischbach said the county had offered to re-interview Wheeler but that Letitia Wheeler, firm president, declined.

DCD Director Scalf said that Wheeler initially was his preferred consultant but that over the next few years "things got cloudy" with Fred Hill Materials.

There also was discussion of a meeting in which Fischbach asked Wheeler to leave because FHM associates, including Baskins, were complaining about her work.

In refusing to be re-interviewed, Wheeler sent a letter to commissioners in May in which she acknowledged that any internally prepared EIS written by Fred Hill Materials would "violate the spirit of neutral third-party preparation."

"I am seriously concerned that Jefferson County staff have lost control of this process and that the applicant is firmly in command of this situation," Wheeler wrote of the second round of interviews in which she refused to participate.

Scalf, noting that letter from Wheeler, said: "The problem with that [going back and asking Wheeler if she is interested in a contract] is that staff has changed its mind. We're no longer recommending Letitia Wheeler. We're recommending GeoEngineering."

Scalf noted that a county planner Wheeler had talked to was no longer assigned to the project. Development Services Manager Stacie Hoskins and Associate Planner Michelle Farfan are now assigned to work on the pit-to-pier project.

"I'm really disappointed in the way this was handled," Sullivan responded.

Commissioner Johnson noted Wheeler's letter was "anything but pleasant."

Scalf questioned how staff could now be called upon to work with Wheeler in light of the letter that criticized the county's process.

"Professionally," said Sullivan. "You do your job."

Contract suspended

Scalf also said Fischbach liked the firm of Jones and Stokes of Bellevue and wanted to use them.

"That's not true, Al. I told you to get it done," Fischbach said, adding later than he did not interview the consultants and removed himself from the process.

In the end, Commissioner Sullivan made a motion to direct staff to "get closure" with Wheeler's firm either through offering her a contract or having her decline.

Once the board voted unanimously for Sullivan's motion, FHM's Baskins walked over to Scalf and said, "I'd like to give you notice we'll be suspending our contract with you by the end of the day."

Jim Tracy, an FHM attorney who attends county commission meetings regularly, walked up to Chairman Johnson to talk to him, then turned around and said, "We'll get the answers on the [witness] stand."

As Tracy was walking out, Johnson said, "I'll tell you what [John] Fabian did say." Johnson stated that Fabian said the Hood Canal Coalition, which Fabian leads, probably wouldn't sue the county if GeoEngineers were hired, even though GeoEngineers was not the firm the group favored.

Tracy turned to Johnson and said the fact that Johnson had had a discussion with Fabian about the issue was "actionable."

"Are the only people we can hear from on this issue Jim Tracy and Dan Baskins? That's what the implication is," Johnson told The Leader.

Johnson also said he didn't feel that there was a comfortable closure between Wheeler and the county. "Maybe there never will be, but an effort should be made," Johnson said of the board's July 9 decision.

Johnson also said some of his questions were not answered about GeoEngineers and its staff. He questioned whether an employee of GeoEngineers, Lynn Keenan, had worked on FHM's dock design.

Scalf said he had worked with Keenan on several occasions and that she was a quality planner.

DCD opinion

In a summary outlining why DCD had opted for GeoEngineers, county officials noted in a disclosure statement that GeoEngineers had not worked with FHM and is "able to provide an unbiased and objective review with one exception." The report noted that Keenan assisted in some of the layout associated with the FHM dock design while she was employed by Reid Middleton and that she had been hired in April 2007 by GeoEngineers.

"My question is: To what extent was she involved and can she be objective? I don't know. It's just a concern," Johnson said.

Asked how he intended to communicate with Wheeler about the board's action Monday, Scalf said he would write her a letter. Hoskins said Monday that Scalf had told her Monday afternoon to wait on a letter to Wheeler.

"We'll see if they want to say they made a mistake and move forward," Baskins said yesterday.

"Not only has Jefferson County clearly violated JCC 18-05-080(4)(b), but in order to do so has overridden the clear delegation of this administrative function to the County Administrator and the SEPA Responsible Official as set forth in JCC 201.010(2) and 18.40.720(2), respectively," FHM attorney Tracy wrote Monday to Fischbach.

Wheeler could not be reached for comment Monday or Tuesday, and GeoEngineers did not return calls both days asking for comment.

The EIS is estimated to cost FHM anywhere from $300,000 to $1.5 million, depending on the scope of the work involved.

(Contact Allison Arthur at aarthur@ptleader.com.)