Ted Fitzgerald will officially become the Port of Brookings Harbor’s executive director.

He has held the position on an interim basis for the past year, but the Port’s Board of Commissioners voted unanimously Tuesday to give Fitzgerald a three-year contract starting Jan. 1, 2012.

He will make $85,000 a year with the possibility of an annual performance bonus. The contract also calls for the Port to pay 15 percent of Fitzgerald’s gross monthly salary into a 401(k).

He will receive 14 vacations days to start, with that number increasing over time as is the same for all Port employees.

Commissioners Kathy Lindley Hall and Jim Relaford negotiated with Fitzgerald during the past few months to reach the agreement. Both said they have confidence he will do a good job.

“He’s proven himself through this interim stage to have the skills to deal with the state agencies when we found ourselves in a debt situation that was impossible to pay,” Lindley Hall said. “Then we had the tsunami and he has proven himself totally capable of getting the job done and having rapport with state and federal agencies to protect our resources.”

Relaford said Fitzgerald’s familiarity with Port issues is a big plus.

“He knows the work, he’s energetic and not afraid to get out in the field,” Relaford said. “He needs to be the leader. We are elected, non-paid commissioners and we need someone to develop a vision and provide leadership.”

Relaford said the Port decided against a nationwide search to fill the position because it would have cost a significant amount of money, including hiring a consulting firm and paying applicants’ travel expenses for interviews.

“The problem with a search is, it’s a three- to six-month process and it’s expensive,” Relaford said. “We just don’t have the funds. A lot of Ted’s appeal is that he is here and on the job.”

Fitzgerald has been earning $7,000 to $9,000 a month on the interim basis, said Relaford. The new contract gives him the possibility of earning well more than $85,000, the commissioner noted.

“I’d like to see Ted make $120,000 to $150,000,” Relaford said. “If he can exceed the expectations of his work plan he can make that kind of money. It’s performance-related, which is unique for public agencies.”

Payment Fitzgerald has received for work to reconstruct the Port from tsunami damage is being reimbursed by the Federal Emergency Management Agency, Relaford said. The Port separates Fitzgerald’s tsunami work from other general duties, he said. 

Fitzgerald, an attorney, is prohibited from accepting new clients under terms of the contract. He acknowledged the Port job will be a reduction in income, but says there are other reasons to take the position.

“It is a challenging undertaking,” he said. I am in the middle of things that I need to get completed. I wasn’t the one suggesting making this modification to my status, but it seems to be important to some of our commissioners.”

Tsunami reconstruction is a primary task Fitzgerald wants to complete, along with general reorganization of the Port to make it more efficient and profitable than in past years, he said.

“It will take us another couple of years,” he said. “Every enterprise model here at the Port has been reworked.”

Fitzgerald was appointed to the interim post in September 2008, replacing Executive Director Rich Drehobl who resigned a month earlier. At the time, it was expected that Fitzgerald would serve only a few months in the temporary position while a permanent replacement for Drehobl was found.