Port of Bellingham Commission

Shall the commission:

125. Annul the Marine Services Northwest (dba Boondock Boats & Motors) accounts in the amount of $51,778? Boondocks has been a port land-lease tenant at 2551 Roeder Avenue since 1990. The write-off for real estate (October 2009 through August 2010) is $29,551 and for the marina is $22,227. The lease was termined as of 8/31/2010. (Consent Agenda C) Approved 3-0

126. Authorize the interim executive director to sign an agreement with Battelle Memorial Institute to conduct small vessel training and exercises? The institute is receiving federal funding for a national security related pilot project and would like to use port property. Components of the U.S. Department of Homeland Security and local law enforcement agencies will conduct the training and exercises. (Consent Agenda D) Approved 3-0

127. Authorize the interim executive director to sign a $156,350 contract with Ricondo & Associates of Cincinnati, Ohio for a feasibility study on the port’s revenues to be used by rating agencies and potential investors? The port is planning on issuing $30 million in revenue bonds for the Bellingham airport terminal expansion project and $10 million in revenue bonds for Squalicum Harbor repair project. The bonds will be repaid by airport passenger charges and moorage revenue. In lieu of insurance, the study will assure investors that port revenues are sufficient to meet the debt service obligation. (New Business 1) Approved 3-0

128. Authorize the interim executive director to sign a $638,626 contract (amendment #6) with Aspect Consulting of Seattle for the next phase of the remedial investigation/feasibility study of The Waterfront District? The port acquired the property from Georgia-Pacific in January of 2005. Soil and groundwater contamination requires remediation under the Model Toxics Control Act. At the 8/19/2008 meeting, vote number 103, the commission approved the first contract for project scoping, remedial investigation field work and preparation of a draft report. The next phase will study the most contaminated areas (i.e., elevated mercury levels adjacent to the log pond shoreline and below the water table of the former chlor-alkali plant) and the evaluation of various remedial techologies. This vote brings the total amended contract to $1,368,041. (New Business 2) Approved 3-0

129. Authorize the interim executive director to award the low bid of $260,104 to Tiger Construction of Everson for water and storm utility improvements? The improvements involve three port properties. The Harris Avenue Shipyard and the shipping terminal will be upgraded to meet state health department requirements. At the Fairhaven Marine Industrial Park tenants will be isolated from stormwater runoff. A contingency fee of $38,896 brings the total contract to $299,000. The work was advertised and four bids were received. (New Business 3) Approved 3-0

130. Approve the settlement agreement and harbor land lease with Peoples Bank for property formerly leased by Marine Services Northwest? See vote number 125 for the write-off of the Marine Services lease. The operation of a “quickie lift” on the tidelands resulted in an environmental liability under the Model Toxics Control Act of approximately $1,200,000. The liability was not finalized so the claim was not filed. Peoples’ Bank wants to recover a $500,000 loan but does not want to assume the environmental liability. The bank will assume the land lease but not for the “quickie lift” area. The bank will sell the buildings to a third-party, who will then assume the lease. The proceeds of the sale of the buildings will be evenly divided between the port and the bank. The port will assume the environmental liability and pursue the owners of Marine Services individually for payment. (New Business 4) Approved 3-0

131. Authorize the interim executive director to sign a settlement agreement with Salmon Bay Barge Lines and Lexington Insurance Company for a pier accident? On 2/5/2008, the Bellingham Shipping Terminal sustained significant damage when the pier was struck by a Salmon Bay tug and barge. Repairing the damage cost the port $223,124. The port was paid $198,124 by the property insurance company. The insurance company will recoup $130,000 from Salmon Bay and the port will receive $20,267. (New Business 5) Approved 3-0

Shall the commission:

132. Authorize the executive director to sign a $13,950 contract (amendment #1) with Pacific Survey and Engineering of Bellingham for the Fairhaven Shipyard drinking water project? The Harris Avenue shipyard needs upgrading to meet state health department requirements. The original $40,000 contract was approved at the 12/1/2009 meeting, vote number 177. Port and city staff meetings have identified tasks not known at the time of the original contract. They include: shoreline and fire department permitting, preparing design drawings and bid proposal forms. (Consent Agenda D) Approved 2-0, Scott Walker absent.

133. Authorize the interim executive director to sign an agreement with the city of Bellingham and the state of Alaska for the construction and maintenance of a sewer line? The Alaska ferry will start discharging sewage while docked at the Bellingham Cruise Terminal. At the 7/6/2010 meeting, vote number 109, the commission authorized the interim executive director to accept $94,259 from the state of Alaska for the installation of a sewer line at the terminal. The port will oversee the installation, maintenance and repair of the sewer line. The state of Alaska will be responsible for sewer charges and reimbursing the port for maintenance and repairs. (Consent Agenda E) Approved 2-0, Scott Walker absent.

Shall the commission:

134. Authorize the interim executive director to renew the port’s liability and auto insurance coverage? The premium will be $131,534 (10/1/2010 through 9/30/2011) and the broker is Alliant Insurance Services of Newport Beach, Calif. The premiums are 4.3 percent or $6,001 lower than the 2009-2010 coverage. The port’s property insurance coverage was approved at the 7/6/2010 meeting, vote number 99. (Consent Agenda C) Approved 3-0

135. Authorize Waldron and Company to extend an offer of employment for the executive director position to Charles Sheldon? The three finalists for the executive director position were: Luther (Mark) Beaty, executive director of operations for the US Customs and Boarder Protection, Office of Air & Marine Headquarters, in Washington, D.C.; Gregory Borossay, the general manager of Liner Development and Charles Sheldon, in charge of special projects for the Port of Seattle. Mr. Sheldon has been employed by the Port of Seattle since 1990. (New Business 1) Approved 3-0

136. Authorize the interim executive director to award the lowest responsive bid of $432,872 to American Construction Co. of Tacoma for the Squalicum dock and inner harbor repair project? The first phase of the Squalicum project will focus on structural repairs. The second phase will include electrical repairs. The inner harbor repairs will be performed over the next few years. The 2010 phase will be structural repairs to Gates 6 and 10. The maintenance project at the Bellingham Cruise Terminal will replace damaged and missing timber bracing and rub boards. The work was advertised and three bids were received. The low bid of $426,769 by Northwest Marine Construction was disqualified because the bid bond was less than the required 5 percent of the bid amount. A contingency fee of $64,931 brings the total contract to $497,802. (New Business 2) Approved 3-0

137. Modify the lease with Point Roberts Press? At the 6/7/2005 meeting, vote number 72, the commission authorized a 40-year lease with Point Roberts Press. The lease allowed the construction a two-story building at 225 Marine Drive in Blaine. Phase 1 would demolish the existing building and the construction of a two-story building; construction would start in 90 days and finish in one year. The top floor of the building would be for Point Roberts Press and the lower level would be rented to marine related users. Phase 2 would add 8,000 square feet to the building. At the 6/2/2009 meeting, vote number 90, the commission modified the lease allowing phase 2 be delayed until 6/1/2014. The lease requires rents to be renegotiated every five years. (New Business 3) Approved 3-0

138. Approve the settlement agreement with Westman Marine for environmental liability? The Westman Marine site in Blaine has been a boatyard and shipyard since 1976. Operations at the site have resulted in environmental impacts to sediments and contamination consisting primarily of boatyard metals. The clean-up costs are estimated at $1,500,000.The agreement transfers equipment worth $502,000 to the port. Westman will demolish and properly dispose of the shop building, debris on the site and pay the port $240,000 cash within 10 days of the signing of the settlement. (New Business 4) Approved 3-0

Shall the commission:

139. Appoint Charlie Sheldon to the position of executive director for the Port of Bellingham, effective Monday, October 18, 2010? Mr. Sheldon will receive a base salary of $135,000 and the standard benefits package. He will also receive a 10 percent deferred compensation benefit, payable at the end of each calendar year and a $600 monthly car allowance to use his personal vehicle for port travel. Approved 3-0

Shall the commission:

140. Authorize the executive director to sign a deed conveying a traffic signal to the city of Bellingham? An agreement with the city of Bellingham (commission meeting on 7/7/09, vote number 104) required a traffic signal or roundabout at the intersection Roeder Avenue and Bellwether Way prior to the city issuing a certificate of occupancy for a second building at Bellwether Gate. TranTech Engineering of Bellevue recommended a signal (10/6/2009 meeting, vote number 154) and Sail Electric of Bellingham was awarded the low bid (3/2/2010 meeting, vote number 44) for the installation of the signal. Traffic improvements in the public right of way are required to be deeded to the city. (Consent Agenda A) Approved 3-0

141. Modify a lease with Chinook Enterprises? The lease was approved at the 8/17/2010 meeting, vote number 116, for the property at 3720 Williamson Way. Whatcom County owns the building (see the County Council meeting on 7/27/2010, votes 134 and 137) and the Port of Bellingham owns the property. The building was constructed with funds that require the use by persons with disabilities or other employment barriers.The modification will clarify that the Washington State leaseholder tax will apply to Chinook Enterprises. (Consent Agenda B) Approved 3-0

142. Amend the leases with Bellwether Gate LLC for Buildings C and D at Bellwether on the Bay? The construction of Building A is completed and the the construction of Building B is expected to be completed by February 2011. The amendment for Building C will change the completion date from October 2012 to June 2011. The amendment for Building D will change the size from a three-story 13,000 square foot building to a two-story 10,000 square foot building and delay the construction for three years. (New Business 1) Approved 3-0

143. Authorize the executive director to award the low bid of $7,116,515 to Tiger Construction of Everson for phase 1 of the Bellingham airport terminal expansion project? Phase one will expand the terminal from the current 27,000 square feet to 47,000 square feet and add 183 seats for a total of 550 seats. The total cost of phase one is estimated at $9,471,791 with additional expenditures of $500,000 for furniture and fixtures, $408,914 for utility extension and $450,000 construction management. Phase two will add up to an additional 43,000 square feet to the terminal. The work was advertised and five bids were received. A contingency fee of $355,825 brings the total contract to $7,472,340. (New Business 2) Approved 3-0

144. Authorize the executive director to sign a utility extension agreement with the city of Bellingham for the Bellingham airport terminal expansion project? There is a legal dispute between the city and the Port of Bellingham as to whether the city has the legal right to require the port to sign an agreement not to protest annexation as a condition of obtaining the extension of utility services. At 12/16/2008 meeting, vote number 150, the commission president was authorized to sign a standstill agreement with the city of Bellingham on pending litigation. The standstill agreement allows the extension of city services. This agreement is for water and sewer services and a fire sprinkler line to the terminal building at 4255 Mitchell Way. The port will pay the city fees of $408,914 for water and sewer expansion and traffic impact. (New Business 3) Approved 3-0

145. Authorize the executive director to sign documents not to exceed $100,000 with Whatcom County for the Bellingham airport terminal expansion project? The building permit fees are: $61,567 for plumbing and mechanical, plan review and building permit. The fire and public works fees are to be determined.(New Business 4) Approved 3-0

146. Authorize the executive director to approve a revised parking easement with Bellwether Gate LLC? Bellwether Gate is attempting to secure financing for Building B through First Mutual Bank and The Bank of Pacific. The port is required to provide consent as the property owner. (New Business 5) Approved 3-0

147. Amend the state of Alaska lease for Bellingham as the terminus for the Alaska ferry? The original 20-year lease was signed in 1989 and renewed at the 5/5/2009 meeting, vote number 76, to run from 10/1/2009 through 9/30/2024. This amendment (#1) will increase the state of Alaska compensation ($31,595) to the Port of Bellingham for 11 additional days the Alaska ferry will dock at the Bellingham Cruise Terminal. The additional days will begin on 5/7/2011 and run through 9/24/2001. (New Business 6) Approved 3-0