Marina dredging postponed after federal permitting backlog; city shifts timeline and funding priorities

Oak Harbor — Harbormaster Elise Henry and Grants Administrator Wendy Horn updated the City Council on April 7 about major delays to the marina dredging and breakwater work because of an extended federal permitting backlog.

Henry said the project team submitted federal permit applications in mid‑2025 but the National Marine Fisheries Service (NOAA Fisheries) has not assigned a biologist to the project; that assignment is a prerequisite to a biological opinion and downstream Army Corps of Engineers actions. City staff said a 45‑day federal government shutdown in fall 2025 significantly delayed NOAA and other federal reviews, and that a recent federal court ruling in California has rolled back endangered‑species guidance adopted in 2019 and 2024, adding further uncertainty to programmatic pathways (including the Salish Sea Nearshore Programmatic approach).

"We are not in a perfect world," Henry told council. She said staff have been told permit timing could take weeks to months for NOAA to sort through the implications of the court ruling and that the city needs roughly another three months for NOAA to produce a biological opinion once a biologist is assigned. The city estimates it requires roughly 12 permits in total before dredging can proceed; even if permits arrive by mid‑2026, procurement and contracting timelines make a full dredge in the 2026–27 fish window unlikely.

Consultant Bill Gerken told council that key contractors' schedules are already filling and some firms have indicated they likely cannot bid for the '26–'27 window, increasing the risk the city would have to wait until 2027–28 to complete work. Council members asked whether delay would increase costs; staff said inflation and contractor availability make higher costs likely but an exact figure is unknown.

On funding, grants administrator Wendy Horn said the city previously approved a funding plan in July 2025 to support bond repayment for the project, and Island County has awarded the city $1 million (RCED) to cover design, engineering and additional permitting expenses. Horn said the city remains eligible to apply again for a federal Port Infrastructure Grant (an $11 million opportunity if awarded) and plans to pursue Economic Development Administration funding to offset an estimated $5 million for breakwater work. In addition, the city has secured $621,000 from the state to upgrade marina electrical systems and upland restrooms.

Staff recommended continued design and engineering work and preparing to advertise and award contracts for the 2027–28 fish window. Councilmembers urged staff to keep pressing federal agencies and to coordinate procurement timing so contractors will be available when permits arrive.

Impact and next steps: staff will continue design and permit tracking, amend consultant contracts to include breakwater permitting, and hold the Island County $1 million in a project fund for near‑term design and permitting costs. If federal permits are delayed further, the city will re‑examine bond timing, LTAC and B&O tax receipts earmarked for the project, and alternative funding scenarios.