145TH YEAR, NO. 103
DailyAstorian.com // WEDNESDAY, NOVEMBER 22, 2017
Cannon Beach
looks at 40
percent water
rate increase
Judge
limits hotel
damages
against Port
Money would pay
for system projects
Potential legal bill now
less than $1 million
By BRENNA VISSER
The Daily Astorian
CANNON BEACH — After months
of deliberation, the public works commit-
tee will recommend to Cannon Beach city
councilors a combined 40 percent increase
for water and wastewater rates for next fi s-
cal year.
It’s the same rate that was proposed ear-
lier this year as a way to fi nance projects in
the water and wastewater master plan. The
20-year plan is required by the state, and
projects would focus on rehabbing or replac-
ing a variety of systems, including brittle
water lines and water storage tanks.
Approving the plan, which outlines
roughly $7 million in water infrastruc-
ture and $2 million in wastewater priori-
ty-one projects, and the rate increase to fund
it stalled in May after committee members
raised concerns about how projects were pri-
oritized and discrepancies within the rate
study.
Since May, committee members worked
with Public Works Director Jim Arndt to
evaluate the benefi ts and drawbacks of fund-
ing the whole master plan versus just a per-
centage, different rate structures and pay-
ment phase-in options.
But ultimately, the majority of the com-
mittee voted to recommend a proposal Tues-
day similar to the one made earlier this year,
which will keep the city’s current rate struc-
ture and raise the average homeowner’s
water bill from about $50 a month to $70 in
the fi rst year.
The committee will introduce its recom-
mendation to the City Council at a work ses-
sion Dec. 12.
“None of this is easy,” Arndt said. “We
have needs in this town, and addressing them
is going to hurt for awhile.”
By EDWARD STRATTON
The Daily Astorian
FEEDING
FRENZY
John Durban/NOAA Fisheries/Southwest Fisheries Science Center
In this photo from a drone, a young resident killer whale chases a Chinook
salmon in the Salish Sea near San Juan Island, Washington.
Marine mammals are eating
more salmon than humans do
By KATIE FRANKOWICZ
The Daily Astorian
Fixing the problem
Cannon Beach has not had a signifi cant
rate increase in 10 years. Because of this, the
Public Works Department has not been able
to fully cover operational costs without dip-
ping into the general fund, according to both
Arndt and his predecessor, Dan Grassick.
The sharp increase would allow critical
projects to be steadily funded by ratepayers
rather than relying on hotel and rental room
tax revenue — which, when the economy is
poor, can create funding instability for these
projects.
Financing 100 percent of these high-pri-
ority projects with rates would help the
department catch up on projects, as well as
reduce the impact on future maintenance
costs, Arndt said. But doing this would
require rates to raise closer to 60 percent.
“We want to provide for and maintain this
system sustainability,” Arndt said.
Most committee members agree there are
parts of the system that have been neglected
and need to be replaced, but are uncom-
fortable recommending a rate increase that
would fi nance any more than 50 percent of
water infrastructure projects and 75 percent
of wastewater projects listed in the plan.
Doing so still generates $2.1 million and
$1.61 million for water and wastewater proj-
ects, respectively.
Most members have disagreements about
what infrastructure projects should be con-
sidered as a No.1 priority, so only providing
partial funding encourages the city to prior-
itize projects and pursue alternative funding
See CANNON BEACH, Page 7A
ONE DOLLAR
A
rebound in marine mammal populations on the West
The Port of Astoria’s potential legal bill
over the Astoria Riverwalk Inn has been
reduced from $4 million to less than $1
million.
Clatsop County Circuit Court Judge
Dawn McIntosh granted a motion Monday
by the Port to limit Param Hotel Corp.’s dam-
ages on claims of fraud against the agency to
$682,800.
That is in addition to more than $200,000
for awarded to Param over the Port’s breach
of contract.
Param and its owner, Ganesh Sonpatki,
had been trying since 2014 to take over
operation of the Riverwalk Inn from heav-
ily indebted former operator Brad Smithart
in exchange for paying his debts to the city,
Port, county and other government entities.
The Port Commission voted in 2015 to have
staff transfer the lease, but the deal fell apart.
After the Port installed locally connected
company Astoria Hospitality Ventures as the
short-term operator, Param sued the Port for
breach of contract and fraud, arguing the
agency had unfairly misled the company
and broken the previous agreement to trans-
fer the lease. Executive Director Jim Knight
was named a co-defendant in the lawsuit, but
later had a separate fraud claim against him
dismissed.
A jury last month awarded Param
$202,430 in economic damages for a breach
of contract claim and nearly $3.8 million on
the claims of fraud. The Port’s attorney, Luke
Reese, argued that the claims of fraud are
subject to caps under the Oregon Tort Claims
Act. The act is meant to protect public bodies
from massive payouts after a wrongful act,
other than a breach of contract, that results in
damages or injunctions.
See PORT, Page 7A
Coast has come with unintended consequences for
salmon. A new study found that a growing population of
fi sh-eating killer whales, sea lions and harbor seals on the West Coast
have feasted heavily on Chinook salmon runs in the last 40 years.
Their consumption of the fi sh —
wild salmon, researchers found the
of which certain populations are listed
increased predation could be taking a
as endangered and threatened — may
toll and “masking the success of coast-
now exceed the combined harvest by
wide recovery efforts.”
commercial and recreational fi sheries,
“We’re trying to understand all
researchers say.
the threats that salmon face through-
It’s a complex trade-off, fi shery
out their range,” said Eric Ward, a
managers say. And many questions
co-author and statistician (biology)
remain about what a growing preda-
with NOAA. “These fi sh have huge
tor population means for the fi sh and
migrations. Fish from the Salish Sea
why, despite the feed-
or the Oregon Coast
ing frenzy, the Southern
and Washington Coast
Resident Killer Whale
migrate all the way up
group in Washington
to Alaska and through-
state’s Puget Sound area
out that whole range
continues to show few
they are vulnerable to
signs of recovery.
predation.”
The study was a
The study purpose-
broad but “careful
fully focused on preda-
accounting exercise,” a
tion by certain recov-
fi rst attempt to quantify
ering marine mammal
marine mammal preda-
populations, said study
tion of Chinook salmon
lead Brandon Chasco,
on the U.S. West Coast
an Oregon State Uni-
and up into British
versity
post-doctoral
Columbia, Canada and
student.
Southeastern Alaska,
The study con-
said co-author Isaac
fi rmed what commu-
Isaac Kaplan
Kaplan of the National
nities near the mouth
National
Ocean
Ocean and Atmospheric
of the Columbia River
and Atmospheric
Administration’s North-
already know — seals
Administration’s
west Fisheries Science
and sea lions eat a lot of
Northwest Fisheries
Center.
salmon. The researchers
Science Center
“The main story here
estimated that Califor-
is there are a lot of fac-
nia sea lions ate 46,000
tors affecting salmon,”
adult Chinook salmon
Kaplan said. “Those include dams and
in 2015, while Stellar sea lions con-
habitat (loss) and fi shing and marine
sumed 47,000. Harbor seals ate con-
mammals. We know all of these things
siderably less, an estimated 1,000 adult
are a challenge to recovery for Chinook
Chinook salmon.
salmon populations.”
“What we don’t know is if these
The researchers — a collabora-
marine mammals are effective and if
tion of federal, state and tribal scien-
they’ve taken the fi sh out of the mouths
tists in the Pacifi c Northwest — used
of other predators,” Chasco said. “Or,
models to estimate that the yearly bio-
if it’s being stacked on top of bird con-
mass of Chinook salmon consumed by
sumption, stacked on top of fi sh con-
sea lions, harbor seals and killer whales
sumption and the density of salmon
increased from 6,100 to 15,200 met-
overall is lower.”
ric tons from 1975 to 2015, even while
“We just don’t know that yet,” he
annual harvest by fi sheries decreased
added, “and I don’t know when we’re
from 16,400 to 9,600 metric tons.
going to know that.”
While recovery efforts on the West
See SALMON, Page 7A
Coast have boosted the numbers of
‘THE MAIN
STORY
HERE IS
THERE ARE
A LOT OF
FACTORS
AFFECTING
SALMON.’
Gov. Brown
directs OHA
to preserve
kids’ insurance
program
By CLAIRE WITHYCOMBE
Capital Bureau
SALEM — Oregon Gov. Kate Brown has
directed the state’s health agency to guarantee
coverage for children and pregnant women
covered by a federal program that’s in limbo.
Oregon is one of three
states that will run out of
federal funding for the Chil-
dren’s Health Insurance Pro-
gram, or CHIP, in Decem-
ber, according to OHA. Up
to half of the states will be
out of federal money by
Gov.
February.
Kate
Brown
Brown directed OHA to
maintain coverage of groups
covered by CHIP for the fi rst four months of
2018. That would cost the state about $35
million.
About 121,000 kids and 1,700 pregnant
women are covered by the program in Oregon.
CHIP generally enjoys broad political sup-
port, but Congress is now well past its Sept.
30 deadline to reauthorize funding for the
program.
But Oregon offi cials expect Congress to
reauthorize the funding and to pay the state
back.
“While this additional cost was not in
the Oregon Health Authority’s legislatively
approved budget, we can manage this on a
short-term basis because it is early in the bien-
nium,” OHA Director Pat Allen wrote in a
Nov. 17 letter to Brown. “We will spend more
of our appropriated state funds earlier to make
up for lost federal funds.”
Allen added that if Congress does not
reauthorize CHIP funding or doesn’t fund it
retroactively, the lost funding would “cause a
hole in the OHA budget” that would have to
be reconciled in 2018.
See GOV. BROWN, Page 7A