Port of Bellingham

The weblog Northwest Citizen (http://www.nwcitizen.us) first reported the $17 million settlement with three insurance companies on August 27. Our port watcher, Earl Dennis missed this vote because he left at 3:20 p.m. when the meeting was recessed and the commissioners went into closed executive session. The regular meeting was reconvened at 4:55 p.m. for the below vote and adjourned at 5:00.

43A. Accept a $17 million settlement in the lawsuit against three insurers for environmental damages? The companies, Lloyd’s of London (England), Chubb Group (New York, N.Y.), and Traveler’s Insurance Group (Hartford, Conn.) offered to settle the port’s claim that they were liable for pollution* at port facilities between 1950 and 1985. Starting in 1986, insurance companies stopped covering environmental pollution. The details of the settlement are currently under a non-disclosure agreement until all litigation with the remaining companies is settled. Eight-five percent of the settlement will go toward cleaning up the sites with the rest going for legal expenses. The first beneficiary will be the former Weldcraft site (7/1, votes 52-56). Approved 3-0

* The pollution involves zinc and copper from old unregulated dumps, lead paint from ship hulls and creosote treated timbers and pilings along the waterfront.

This meeting was cancelled because one commissioner was out-of-town and another was in the hospital.

59. Create a standing Ethics Advisory Committee? In 2002, the commission ordered the formation of an ad hoc Ethics Advisory Committee to make recommendations on port ethics. That committee delivered a unanimous recommendation that a standing committee be created. The standing committee can only offer advice. (Resolution 1181) Approved 3-0

60. Designate the chief financial officer as the official responsible for informing the public of the port’s intent to sell tax-exempt bonds to finance their infrastructure projects? The port passed such designation in Resolution 1098, but that resolution had a sunset clause. This resolution will reinstate this designation and make it an annual reappointment in January of each year. (Resolution 1183) Approved 3-0

61. Authorize the executive director to sign an agreement with Retec Group of Seattle for sediment investigation at the Colony Wharf site? The estimated cost is $22,492 and will be completely funded by the state Department of Ecology. The study will determine contamination at the site and develop a clearer picture of contamination in the Whatcom Waterway. To keep the study cost effective, Retec will coordination its schedule with port work at the Harris Avenue shipyard site. (12/17/02, votes 121, 122, 123). Approved 3-0

62. Sign an order with the state Department of Ecology for completion of a remedial investigation/feasibility study at the Harris Avenue shipyard site? The estimated cost is $160,000 and the port is responsible for up to $40,000 of that amount. The Retec Group of Seattle has been retained to perform the work. In December 2002, the commission authorized the study, pending public comments. No comments were received. Approved 3-0

63. Allow the Washington Air National Guard an early release from their lease and acquire the National Guard buildings? The current Air National Guard rent is $1 per year and the lease is for 14 years. FAA rules state that the guard must pay fair market value and guard policies do not agree with the FAA. For the last several years the port and guard have tried work out the conflict. As a result, the Air National Guard moved to Tacoma and requested that the port acquire the buildings. Preliminary negotiations place the buildings’ value at $450,000. The port will most likely demolish the buildings as they are of no value to the port. Approved 3-0

64. Authorize the executive director to enter into an agreement with the federal Transportation Security Administration for law enforcement reimbursement? The reimbursement will cover the full cost of having one Whatcom County Sheriff deputy at the airport during passenger arrival times. The agreement is for the remainder of the fiscal year and the four following fiscal years. Approved 3-0

65. Sign a $99,365 contract with Frieberg Construction of Ferndale for the Mitchell Way road overlay project? This is the last layer of pavement needed to finish the road surface. This is part of the $2.7 million Mitchell Way development project and was budgeted at $108,200. Approved 3-0

66. Authorize a $50,000 amendment to the 2003 budget to fund the proposed Wood Stone expansion project? The Mitchell Way development project is expected to finish $250,000 under budget. This is largely due to the reduced cost of soil removal. Of the savings, $50,000 will be used to start design work on the Wood Stone project, which will include an additional building pad on the corner of West Bakerview and Airport Way. Approved 3-0

67. Terminate a lease with Mary M. Bingman? The lease will be terminated providing that Mary Bingman performs several tasks.* Once the lease is fully terminated, an agreement will be drawn up with Hopeton, LLC for the same property. Approved 3-0

68. Approve a 20-year lease with Hopeton, LLC of Bellingham for 57,499 square feet of harbor land at Squalicum Harbor? Hopeton (a property management and investment company) plans to construct a building on the property. If the Bingman termination agreement is not fulfilled, this lease will be terminated. Commissioner Smith has had dealings with one of the Hopeton owners, so he abstained from the vote. Approved 2-0-1, Douglas Smith abstained.

69. Transfer the rent on 24,000 square feet of land at the Bellingham International Airport from John and Vera Williams to Wise Enterprise? The land will be used by Wise Enterprise as a staging and assembly area for a building they are constructing at the airport. Approved 3-0

70. Transfer the rental agreement on 650 square feet in the Harbor Center Building from Carol Jackson to Wade and Margarette Coen? Carol Jackson sold CJ’s Harbor Salon and Barber business to the Coens. Approved 3-0

71. Authorize the termination of the lease with Joseph and Patricia Slevin and enter into a new lease with William and Mary Johnson? The Sleveins are selling the Harbor Café in Blaine to the Johnson’s. Approved 3-0

72. Authorize the executive director to enter into an agreement with the city of Blaine to share in the cost of removing two fishing boats abandoned by Warren Hanson? The total cost of removing the derelict vessels from private property was $43,951. The state paid $32,984, the city of Blaine $6,044 and the port $5,000. Attempts to recover the costs from Warren Hanson have not been successful. Approved 3-0

73. Certify the September 25 auction of seized vessels and storage items? A total of three vessels and the contents of web house locker were seized for nonpayment of moorage and storage fees. A total of $5,189 is owed the port. The auction can be avoided by paying the amount due** before September 25. Approved 3-0

74. Authorize partial funding of the Wood Stone expansion project at the airport? On July 17, 2003, the state Community Economic Revitalization Board gave the port an $850,000 loan and a $150,000 grant for work on the Wood Stone expansion. The revitalization board authorization is needed for additional state assistance on the project. If the project is stopped for any reason, the port is not required to reimburse the board for expended funds.

Approved 3-0

75. Modify the lease with Non Profit Central of Bellingham? NPC provides office/on-line services to nonprofit organizations. NPC needs the renewal of its lease option to coincide with the requirements of the Small Business Administration. Their rent will be adjusted according to Port of Bellingham policy. Approved 3-0

76. Modify the lease with Current Industries of Bellingham? Current Industries (manufacturing cable assemblies and wire harnesses) is requesting permission to sublease 30,000 square feet of land at the airport to Wise Enterprises of Bellingham for the manufacture and assembly of building components and office space. There is no fiscal impact on the port. Approved 3-0

77. Approve the first five members of the new Ethics Advisory Committee? Vote 59 (8/19, page 17) created a permanent Ethics Advisory Committee replacing the temporary ethics committee. As terms expire, the ethics committee will recommend replacements to the commission. Mark Larson, Nancy Jordan, Chris Philips, Bill Sarjeant and Steve Schoenfeld will fill five of seven positions. Approved 3-0

78. Authorize the executive director to execute an agreement with Whatcom County for the Blaine Harbor Pilot Project? In 1995, the Washington Department of Health noted poor water quality in Drayton Harbor due to high levels of fecal coliform, and stopped shellfish harvesting. The water quality is improving, however, there are still high fecal coliform levels around the commercial tenant area of the marina. The marine resources committee has received a $6,000 grant and the port is spending $2,500 to evaluate the large bird concentrations, its impact, and develop a strategy to decrease the number of birds in the area. Approved 3-0

*The tasks include: the removal of an inoperative oil/water separator and installation of a new one, proper disposal of contaminated sediments and filling the area with clean materials, install a groundwater monitoring well, and provide environmental remediation documentation.

**Gratuity (28 foot sailboat, $1,342 due), Tiffany (25 foot sailboat, $1,459 due) Kloqueh (37 foot gillnetter, $1,999 due) and web house #A (gillnets, corks, two props, outboard motor and miscellaneous items, $390 due).