Port of Bellingham Commission

Shall the commission:

22. Appoint 2008 Industrial Development Corporation officers and establish meeting dates? The officers will be: Douglas Smith-president; Jim Jorgenson- vice president; Scott Walker-secretary and Tamara Sobjack- acting treasurer. Meetings are held in conjunction with regular port commission meetings and occur “as needed.” Approved 3-0

23. Adopt the 2008 Industrial Development Corporation budget of $149,500? The IDC charges a fee to issuers of industrial revenue bonds. The fees can be used for economic development purposes. The balance at the end of 2007 was $313,656 and the budget anticipates revenues of $214,470 in 2008. Approved 3-0

24. Authorize the executive director to accept a state grant for reimbursement of the purchase of a single pump-out station at the cruise terminal? The 2008 budget includes $83,753 for the purchase, removal and replacement of the pump-out unit. State funds will pay up to $77,815 that also includes $15,000 for operation and maintenance costs. The port will pay up to $20,938. Approved 3-0

25. Authorize the executive director to sign an agreement with the state to auction Port of Bellingham surplus equipment? Public auctions of surplus equipment are required. Past auctions that the port has conducted have failed to generate enough revenue to pay for conducting the auctions. The state will handle the auctions for minimal fees plus 7.5 percent of the gross sales over and above the minimum amounts. Approved 3-0

26. Renew an $80,000 agreement with WWU’s Small Business Development Center? The agreement (first approved at the 7/2/02 meeting, vote number 70) provides business-counseling services to the small cities and rural areas of the county. Half the funding is from the Industrial Development Corporation. Approved 3-0

27. Renew a lease with Northwest Discovery Project? In 1995, the port entered into a yearly agreement with the Northwest Discovery Project to operate the center. Since 2005, the center has charged admission to be used for operation, maintenance and repair, reducing the port’s funding participation. The port supports the Northwest Discovery Project’s goal of building a Terraquarium, which will include a state-of-the-art zoo and aquarium, dynamic land and water-based exhibits with digital presentations, and educational and research facilities in partnership with Huxley Environmental College. The port is contributing $24,500 for education and support services, $5,000 for repairs and maintenance; the lease runs from 1/1/08 through 12/31/08. Approved 3-0

28. Authorize the executive director to award a $15,487 contract (amendment #1) to Bering Industrial Contractors of Edmonds to replace a waterline at the cruise terminal? Bering was the only bid on the waterline and the port already had a contract with them (9/4/07 meeting, vote number 104) for similar work at the cruise terminal; it was easier to expand the contract than rebid the project. This contract includes a contingency fee of $1,549 bringing the total amended contract to $400,540. Approved 3-0

29. Authorize the executive director to sign a contract with VanNess Feldman of Seattle for legal counsel on waterfront properties? The port has contracted with VanNess Feldman since 2005 to provide joint representation for the port and city of Bellingham on federal issues and to assist in attracting federal funds for the waterfront development area, including the pursuit of NOAA and other project funding. The port and the city each administer the contract separately. The port has budgeted $45,000 for the contract that runs from 2/6/08 through 12/31/08. Approved 3-0

30. Authorize the executive director to sign a contract with Gordon Thomas Honeywell (James Waldo) to provide mediation services with the Lummi Nation? The port’s future projects on the Bellingham waterfront include environmental clean-up, construction of marine facilities, shoreline treatments and public access. Because these projects are to be conducted in a marine environment, the port will need to obtain a U.S. Army Corps of Engineers permit. The permit process must consider potential impacts on affected tribal entities, and the port is seeking an agreement with the Lummi Nation and eventually the Nooksack Tribe regarding such impacts. Mr Waldo has been selected as mediator by both the Lummi Nation and the port, because of his experience and expertise in tribal negotiations. The contract is written at an hourly rate, the total not to exceed $73,000. Approved 3-0

31. Authorize the executive director to sign an agreement with the Whatcom Council of Governments for a passenger ferry study? In winter 2005-06 the WCOC conducted a test of a passenger-only ferry between Bellingham and Friday Harbor. This test run demonstrated significant travel demand for the proposed service. A working group consisting of the port, WCOG, All American Marine and San Juan Island Commuter Service has recently examined the matter and recommended this study to complete a business plan, economic impact analysis and funding strategy to establish the service. The Industrial Development Corporation budget includes $10,000 toward this study and the WCOG is providing a matching amount. Approved 3-0

32. Authorize the executive director to settle two claims totaling $17,230? Friberg Construction has a claim of $9,105 and Greg Ottley and a claim of $8,125. Both were hired by Western, a public charter operation, to do site work and make improvements to a leased modular ticketing and screening facility. Western went out of business in mid-January 2007. Staff recommended that since the port received the benefit of their work (see next vote) the port pay these claims. Approved 3-0

33. Authorize the executive director to purchase a modular building? The commission voted to lease the 28’ x 64’ mobile office from Pacific Mobil of Marysville at the 5/1/07 meeting, vote number 64. The port leased 200 square feet to Slattery Ground Services to perform ticketing services for Skybus Airlines. The port has been planning on purchasing the unit because of the added capacity it affords for ticket counter space, expansion of existing air carriers and/or the addition of a new air carrier. Also, the unit will allow temporary relocation of ticketing operations to facilitate the upcoming main terminal remodel. The total cost of the building will be $118,798. Approved 3-0

Shall the commission:

34. Authorize the executive director to settle claims with insolvent London market insurers? At the 5/20/03 meeting, vote number 43A, the commission settled $17 million in claims against three insurers for environmental damage. The companies, Lloyds 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. Some of the companies that were part of the London market were insolvent or out of business. When the settlement funds arrived, the percentage of the gross settlement amount that was attributed to the insolvent carriers was deducted, making the funds approximately $220,000 short. The port is now in the position to settle with three of the insolvent companies in the amount of $144,812. After filing and court costs the amount will be $142,700. The alternative to settlement would be litigation in the English courts which would be cost prohibitive. Approved 3-0