HMC

Island Manager Report

Board Meeting

August 11, 2001

The new spill containment kit with boom material has been installed on the ferry. The boom keeps a spill from spreading away from the initial location. The boom is required by the Department of Natural Resources as part of our lease for the ferry piers and ramps.
For Board discussion: (1) request to allow trailers on ferry during middle of holiday weekends on a space-available-only basis. (2) suggestion received for new mainland shelter for ferry foot passengers.

Well pump #2 failed after about 16 years in service. It was pulled out and replaced. Inspection of the well site facilities indicated that the storage reservoir is only filling about halfway and that a device giving protection for the various pumps against an electrical supply failure is not in place. Therefore, repairs and additions to the pumphouse wiring and electrical controls ares to be completed next week. Water production from both the original well and the newer well continues to be good.

Roads

A reminder: ferry use may be charged for only by service and delivery persons.
For Board discussion: delinquencies on two properties: former McKinsey; Balabar.

HMC purchase of the County-owned, former Lewis property: a check for the full amount of the sale has been sent in, but we have heard nothing back yet.

HMC has received some very good news regarding the three lawsuits stemming from incidents on the “Charlie Wells” in 1999. The Board of Trustees president and the island manager, along with numerous attorneys, recently attended all-day mediation sessions in Tacoma and Seattle. As a result of these sessions, all three cases have been settled. Written releases have been received from all parties involved. One final dismissal by the court has been received by our attorneys and the other should be received shortly. This will bring to a close these very serious cases. There is always a great deal of uncertainty regarding a defendant’s liability in incidents like these as well as the very serious concerns about the size of the claims and the amounts actually awarded by the courts.
Accident cases like these tend to make insurers look at the vessel operator as a risk not worth taking on. As many members know, HMC’s insurance coverage for the “Charlie Wells” was cancelled following the second incident (November, 1999) and finding new coverage at any price was difficult. HMC continues with the current coverage but pays a high premium for it because of the accident history. This cost should go down with time provided we remain accident-free.