Port of Bellingham Commission

Shall the commission

54. Declare Quickie Lifts #1 and #2 as surplus and authorize staff to sell them at a public action? Marine Services Northwest (dba Boondock Boats & Motors) closed the business and and defaulted under the terms of the port lease. The port commission wrote-off $51,778 as a bad debt at the 9/7/2010 meeting, vote #125. The operation of the “quickie lift” on the tidelands resulted in an environmental liability under the Model Toxics Control Act of approximately $1,200,000. Peoples’ Bank wants to recover a $500,000 loan from Boondock 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 “quickie lift” environmental liability and pursue the owners of Marine Services individually for payment. Action Item 8 (Resolution 1296) Approved 3-0

55. Authorize the executive director to spend $30,353 to purchase a heavy equipment trailer? The trailer that is currently used is 39 years old and too small to haul newer equipment. The trailer will be purchased from Trailer Town in Olympia for $25,189. State sales tax and federal excise tax brings the total cost to $30,353. (Consent Agenda C) Approved 3-0

56. Renew and modify a lease with Wood Stone Corportation? The Wood Stone Corporation manufactures wood-fired and gas ovens (for restaurants) at the Bellingham airport. The original ten-year contract to lease the Sports Arena at the Bellingham airport was signed in April of 1999. Wood Stone paid approximately $3.1 million in rent and fees during the ten years. The monthly rent and fees will increase from $21,850 to $27,592 with total revenue projected to be $1,661,000. The lease will be renewed for five years beginning on 6/1/2010 and ending on 5/31/2015. (Consent Agenda E) Approved 3-0

57. Authorize the executive director to sign a five-year management agreement with Standing Parking Corporation of Chicago, Ill., to manage the Bellingham airport parking lots? The port will pay the company $600,392 for the first year, increasing annually to $659,846 in the final year. Standard Parking will provide three buses and drivers to move customers between the overflow parking lots and the main terminal. The agreement runs from 6/1/2011 through 5/31/2016. The commission first approved a contract with Standard Parking Corporation to manage the airport parking lots at the 4/3/2007 meeting, vote #51. (Action Item 1) Approved 3-0

58. Authorize the executive director to sign a $447,000 agreement (amendment #4) with the state of Washington for the Bellingham Bay Demonstration Pilot Project? The pilot project was initiated in 1996 to improve the environmental health of Bellingham Bay and the deadline was set at 6/30/2002. The deadline was extended to 6/30/2005, then 6/30/2007, 6/30/2009 and the current deadline is 6/30/2013. The $447,000 will fund habitat restoration at Squalicum Creek ($350,000) and beach restoration at Little Squalicum ($97,000). This amendment brings the total budget to $1,019,250. (Action Item 2) Approved 3-0

59. Authorize the executive director to sign a $311,150 contract (amendment #4) with Anchor QEA of Seattle to perform engineering and design services for the Squalicum Creek restoration project? The major components of the project are: removal of fish passage barriers, modification of two bridges, removal of the concrete bottom between the two bridges and replacement of a sewer trunk line. The state, city of Bellingham and Whatcom County have made commitments of $2,085,000 to fund the project. The estimated cost of the project is $3,500,000. This amendment brings the total contract to $489,700. Action Item 3) Approved 3-0

60. Authorize the executive director to sign a $34,600 contract with Coast & Harbor Engineering of Edmonds to perform preliminary design and permitting for Little Squalicum Beach improvements? The intent of the project is to cleanup and restore the degraded shoreline area adjacent to Mt. Baker Plywood. A contingency fee of $3,460 brings the total contract to $38,060. (Action Item 4) Approved 3-0

61. Authorize the executive director to sign a $189,130 contract with Pacific Surveying & Engineering of Bellingham for engineering and design of a comprehensive airport parking plan? Added flights and larger planes have increased the length of time vehicles stay in airport lots from four days to seven days. This has reduced available parking and created a need for increased parking facilities. Three sites will be selected for future parking lots. (Action Item 5) Approved 3-0

62. Authorize the executive direct to award the bid of $315,941 to HCI Industrial & Marine Coatings of Brush Prairie, Wash., to paint four port facilities? The four facilities are: Bellingham Cruise Terminal, 625 Cornwall Avenue, the Bellwether Building and portions of the Bella Marine Restaurant. The low bid of $148,267 by Liquid Applications was determined to be non-responsible due to the companies inability to obtain the necessary bonds to enter into the contract. A contingency fee of $31,059 brings the total contract to $347,000. The engineer’s estimated cost was $380,000. (Action Item 6) Approved 3-0

63. Authorize the executive director to sign both a deed of dedication of public improvements and latecomer contracts notice with the city of Bellingham? The shipyard needed upgrading to meet state health department requirements. The water main was extended and four fire hydrants installed. The port is entitled to recovery a share of construction costs from latecomer users. The upgrade is completed and will be turned over to the city of Bellingham for maintenance and operations. (Action Item 7) Approved 3-0

64. Approve an agreement with the Northwest Discovery Project to manage and operate the Marine Life Center? In 1995, the port entered into a yearly agreement with the Northwest Discovery Project to operate the Marine Life Center. Attendance dropped from a high of 71,662 in 1998 to 18,114 in 2010. Since 2005, the center has charged admission to be used for operation, maintenance and repair. The port shall pay the Northwest Discovery Center for expenses incurred by the Marine Life Center. The operating budget for 2011 is $84,837 and the capital budget is $70,000 for the replacement of the chiller unit and generator. The agreement will commence on 4/1/2011 and terminate on 12/31/2014. (Action Item 9) Approved 3-0