April 2005
Watching Government
Port of Bellingham
Compiled by Earl Dennis
Action Taken at February 1, 2005 Meeting
Shall the commission:
23. Authorize the sale of five vessels for nonpayment of moorage and storage fees? The vessels are the Chris Elliott, Gary Sharp, Jeremiah Holt, Two Sheilas and Beluga. Total nonpayment charges are $6,272. The auction was held on February 24, 2005. Approved 3-0
24. Execute an agreement with Whatcom Maritime Historical Society for 627 Cornwall Avenue? The society, a Washington nonprofit organization, will use the former port maintenance shop for equipment storage, workshops and waterfront tours. In lieu of rent, the society will provide public workshops and tours and $10 monthly to cover electricity costs. Approved 3-0
25. Modify an agreement with Federal Express Corporation and McMahon Development Groups of San Diego to provide McMahon’s lender the power to authorize leases? McMahon sub-leased space from Federal Express at the Bellingham International Airport to construct a new facility for Federal Express (7/2/02 meeting, vote 61) and then lease it back to them. McMahon is looking to refinance the project, but the lender requires an agreement from the port that, should Federal Express terminate, default or not renew the lease, the terms and conditions in the current lease will not change. The lender can also take title of the improvements if there is a default on the loan. Approved 3-0
26. Modify the lease with the Toolhouse Design Company of Bellingham, to allow them to expand their business in the Bellwether Building? Toolhouse will expand their operations into the empty suite formerly occupied by Polar Tanks, as well as incorporate the hallway between the suites. This expansion will add $3,081 to the monthly rent, plus a 3 percent annual escalator, to generate $283,296 over the seven-year lease. Approved 3-0
27. Award the low bid of $106,685 to Ebenal General of Bellingham for the Toolhouse expansion project? The port will pay a maximum of $73,360 toward the project, with the remaining to be paid by Toolhouse. The contract includes a 10 percent contingency fee for a total of $117,354. Approved 3-0
28. Modify the lease with Wise Enterprises for 3841 Sound Way and 1950 Victoria Place? This modification is for 6,072 square feet of land between the two properties. It will create $250 in monthly income for the previously unused property. Approved 3-0
Action Taken at February 15, 2005 Meeting
Shall the commission:
29 Recognize Bill Hager for his over 14 years service with the port? He was the real estate/planning director when he retired. (Resolution 1209) Approved 3-0
30. Modify the port’s petty cash fund? This modification will add a petty cash custodian at the airport to handle the automated parking lot starting on March 1, 2005. Brian Henshaw will be in charge of the $600 fund. (Resolution 1210) Approved 3-0
31. Allow the sale of up to $4 million in industrial revenue bonds by B. B. Meat and Sausage Company of Bellingham? The company has operated in Bellingham since 1934. The tax-exempt bonds will finance a new manufacturing facility in Ferndale that will be twice the size of the current building. B.B. Meat will be responsible for the loan and will pay the port a $1,000 application fee and a 1/10 of 1 percent annual fee for servicing the loan. (Industrial Development Corporation Resolution 55) Approved 3-0
32. Authorize the executive director to send a statement of loss to Lexington Insurance Company of Chicago for storm damage? The damage occurred to the riprap on the south bank of the Bellingham shipping terminal in the winter of 2001. The insurance company needed to see a permit for proof that the damage was actually going to be repaired. The permit to repair the damage took longer than anticipated, that is the reason for the late claim. After the $25,000 deductible, the port is seeking $92,164 in damages. Approved 3-0
33. Increase the wetlands strategy contract with Reid Middleton by an additional $50,000? Reid Middleton was hired to develop a 20-year wetland strategy for the Bellingham International Airport and to oversee applications for state and federal permits. It was anticipated that another consultant would be hired for county permits. The county permit process is shaping up to be a major process and the local application must be consistent with the federal and state permit applications. To simplify the process, Reid will be in charge of county applications. Approved 3-0
Action Taken at March 1, 2005 Meeting
Shall the commission:
34. Authorize the executive director to deed sewer and water line improvements along West Bakerview and Airport Way to the city of Bellingham? The improvements installed 1,127 feet of water line, 244 feet of sewer line and five fire hydrants. The city will be responsible for the maintenance and operation. Approved 3-0
35. Authorize the executive director to sign a one-year contract for $188,202 with the Whatcom Security Agency of Bellingham? There are no changes in the previous contract (4/6/04 meeting, vote 39). The contract runs from 4/1/05 to 3/31/06. Approved 3-0
36. Authorize the executive director to sign a contract with the state for a remedial investigation/feasibility study of Whatcom Waterway? The waterway has been under investigation since the early 1990s but the state has not made a final cleanup decision. The port assumed responsibility for completing the remedial investigation/feasibility study and site cleanup under the G-P acquisition. The state issued a notice of potential liability on 2/1/05 to allow the port to perform the remedial investigation/feasibility study under an agreed order, thus providing access to state grants. The contract will be signed in May 2005. The remedial investigation/feasibility study is expected to cost $300,000 and will be financed by a state grant. Approved 3-0
37. Authorize the executive director to sign a contract with the state for maintenance and monitoring of the G-P log pond? The pond was capped in 2000 and was monitored for the first two years. Now it is required to be monitored again in 2005. With the G-P acquisition, the port assumed responsibility. The state issued a notice of potential liability to allow the port to assume management of the pond. The log pond’s management is included in the Whatcom Waterway grant. See final sentence in the previous vote. Approved 3-0
38. Authorize the executive director to sign a contract with the state to complete a remedial investigation/feasibility study of the Chlor-Alkali site? In July 2004, G-P finished a draft remedial investigation/feasibility study, stipulating the site was for industrial uses. This will complete the remedial investigation/feasibility study and allow access to state grant funding. The remedial investigation/feasibility study’s estimated cost is $350,000. Approved 3-0
39. Authorize the executive director to sign a contract with the state to pay them $100,000 per year for oversight of contaminated sites on the former G-P property? The acquisition of the G-P property made the port responsible for performing planned remedial actions on the property. The state will provide 50 percent matching grants for the cleanup, but the port must reimburse the state for oversight of the port’s cleanup work. The oversight costs are not eligible for grants. Currently the port works with six different site managers and state has agreed to provide one person for five of the sites: central waterfront, I&J Waterway, Chlor-Alkali facility, pulp and tissue mill and the airport landfill. Approved 3-0
40. Authorize the executive director to amend the contract with Retec Group of Seattle for the Harris Avenue shipyard site? After evaluating the site’s remedial investigation/feasibility study, the state is requiring more sampling to prove that all upland contamination is under control. This amendment increases the contract by $47,586 plus a 20 percent contingency for a total of $470,280. Ecology will fund 50 percent of the increased cost. Approved 3-0
41. Authorize the executive director to amend a state grant for the remedial investigation/feasibility study of the Harris Avenue shipyard? This amendment will increase state funding by $23,793 for a total grant of $89,793. Approved 3-0
42. Allow the city of Bellingham free use the salt pad area at the Bellingham Shipping Terminal for storage? Recycled steel from the Skagit Valley Bridge is earmarked for several projects, including the Farmer’s Market Depot and new county jail. The city estimates it needs one acre for up to 10 months to store and stage the lead painted steel; no work on the steel is planed for the site. The city will pay a non-cash credit of $6.12 per square foot to reduce the cost of the city’s work on the water main connections along West Bakerview and Airport Way (see vote 33 on page 13). The city will be responsible for any environmental cleanup. Approved 3-0
43. Authorize the executive director to enter into a $35,565 amended contract with Moffatt and Nichol Consulting Engineers of Seattle for the I&J Waterway design and construction? There was a premature failure of the 24-year-old riprap on the west edge of the waterway, near Bellwether Way. The U.S. Coast Guard is working with Moffatt and Nichol on their on their portion of the riprap failure. By working in conjunction with the Coast Guard, both projects can be bid and constructed at the same time and with cost savings. The original contact (9/7/04 meeting, vote 97) was for (including contingency fee) $42,550. This amendment provides for a15 percent contingency fee for a total of $40,860. Approved 3-0
44. Allow the city of Bellingham free use of port assets from March 1 through May 15? The former administration building and Warehouse #2 on Cornwall Avenue will be used for the second annual Whatcom County Procession of the Species celebrating art and nature. It is sponsored by the North Cascades Institute. The port will be listed as a sponsor on all advertising. Approved 3-0
45. Authorize the executive director to award the low bid of $189,480 to Larry Brown Construction of Everson for five projects? The projects are too small to bid out individually: Rebuild Gate 9 trash enclosure, Esplanade roof Repair, gutter repairs at Bellingham Cruise Terminal, replace leaking windows at the Fairhaven Station and improvements to the roof of the Marine Park shelter. The contract includes a 15 percent contingency fee for a total of $218,000. Approved 3-0
