Port of Bellingham Commission

Action Taken at March 20, 2012 Meeting

Shall the commission:

49. Authorize the sale of one vessel for the nonpayment of moorage fees? An auction was scheduled for April 19 at Squalicum Harbor for a 50-foot wood sailboat with a moorage fee of $6,661. The owner paid the moorage fee so the auction was cancelled. (Consent Agenda A) Approved 3-0

50. Update various harbor improvement plans? (Public hearing held) This is a housekeeping item for Blaine Wharf, Sumas Cargo Terminal, Bellingham Airport, Squalicum Harbor, Bellingham Shipping Terminal and Fairhaven Improvements. Action Item 2 (Resolution 1308) Approved 3-0

51. Appropriate $110,024 for the purchase and installation of dock safety ladders? The boating community and the Marine Advisory Committee have expressed a concern about the absence of safety ladders on the floating docks. Approximately 300 ladders will be installed at Blaine and Squalicum Harbors. Existing moorage rates will fund the purchase and installation. (Action Item 3) Approved 3-0

52. Authorize the executive director to sign an agreement with KTOO-TV to provide $15,000 for a documentary? The Alaska public television station is producing a four-part documentary on the 50th anniversary of the Alaska Marine Highway System. Since the Bellingham Cruise Terminal is the southern terminus it will be part of the documentary. (Action Item 4) Approved 2-1, Scott Walker opposed.

53. Approve a lease modification with Greenberry Industrial of Corvallis, Oregon? The original lease was approved at the 10/4/2011 meeting, vote #143 and modified at the 2/7/2012 meeting, vote #24. This lease will add 92,840 square feet to outside storage and parking area. This amendment will bring the total lease to $206,037. (Action Item 5) Approved 3-0

54. Authorize the executive director to sign a $59,860 contract (amendment #11) with AECOM of Los Angeles, Calif., to the scope of the remedial investigation/feasibility study at the central waterfront site? This amendment will focus on identifying the hydrocarbon sheen that was observed at the southern shoreline near the former Chevron Bulk Fuel Terminal. The project is eligible for 50 percent of the funding by the Model Toxics Control Act. This amendment brings the total contract to $767,589. (Action Item 6) Approved 3-0

55. Authorize the executive director to sign a $92,000 contract (amendment #26) with Anchor QEA of Seattle for the phase 1 of the Whatcom Waterway cleanup project? The contract provides for additional design and permitting of the inner Whatcom Waterway, the log pond area and the berth 1 area of the Bell Shipping Terminal. The project is eligible for 50 percent of the funding by the Model Toxics Control Act. This amendment brings the total contract to $7,140,362. (Action Item 7) Approved 3-0

56. Authorize the executive director sign a $43,000 contract (amendment #12) with Reid Middleton of Everett to provide additional construction administration assistance for the Gate 3 docks F&G replacement project? This amendment brings the total contract to $1,013,900. (Action Item 8) Approved 3-0

57. Approve travel by Lydia Bennett to a meeting in Vancouver, B.C.? At the 3/6/2012 meeting, vote #48, the commission approved a motion to require a vote on all international travel. Approved 3-0

Action Taken at April 3, 2012 Meeting

Shall the commission:

58. Accept the separation agreement between the Port of Bellingham and Charlie Sheldon? Executive Director Charlie Sheldon submitted his resignation on April 3. The agreement provides for his employment through the end of April, a lump sum severance equal to five months pay and a standard release by Mr. Sheldon of all potential claims? (New Business 1) Approved 2-1, Michael McAuley opposed.

59. Appoint auditor Rob Fix as the interim executive director? The appointment of Mr. Fix is effective immediately, he will serve until a new executive director is appointed or further direction by the commission. (New Business 2) Approved 3-0

60. Authorize the chief financial officer to pay the state auditor an estimated $35,447 for the annual audit? The estimated amount doesn’t include travel and out-of-pocket costs. The audit will begin on April 16 and the port expects it to be completed in June. (Consent Agenda C) Approved 3-0

61. Approve a lease with Bellingham Yacht Charters and Bellingham Yacht Sales at the Harbor Center Building? The two businesses have been a tenant for approximately 26 years and will lease suites 164, 168 and 174. (Consent Agenda D) Approved 3-0

62. Appoint deputy auditor Tamara Sobjack as auditor and Valerie Schorr as assistant auditor? This is a temporary position while Rob Fix is serving as interim executive director? (Action Item) Approved 3-0

63. Authorize the interim executive director to sign an agree order (amendment #2) 116. for a remedial investigation/feasibility study of the I&J Waterway site? The original agreed order was passed at the 12/7/2004 meeting, vote #116. The port and Bornstein Seafoods have been labeled as potentially liable parties for contamination at the site and are responsible for the cleanup. This amendment is in response to a request by the state for additional sediment and water sampling. A Model Toxics Control Act grant will fund 50 percent of the project. (Action Item 1) Approved 3-0

64. Authorize the interim executive director to sign a $39,820 contract (amendment #2) with URS Corporation of San Francisco for engineering and design of the airport apron rehabilitation and reconstruction project? The apron is paved with asphalt; it has cracking and water is pooling. The goal of the project is to extend the life of the pavement for another twenty years. This amendment is for the design of an oil water separator in the de-icing system, waste facility grading, wash pad design and permitting. This amendment brings the total contract to $258,702. The federal government (FAA) will reimburse the port for 95 percent of the cost. (Action Item 2) Approved 3-0

65. Approve a lease modification with Zephyr Investments for property at 2551 Roeder Avenue? The property was formerly leased by Marine Services Northwest (Boondocks Boats and Motors), the lease was terminated with Marine Services on 8/31/2010 and a lease signed with the Peoples Bank so it could recover a $500,000 loan to Marine Services. The lease was transferred to Zephyr Investments at the 12/5/2011 meeting, vote #170. The lease modification expands the authorized use of the outside storage area. TD Curran operates an Apple computer store in 13 percent of the building, 60 percent will be used for marine electronics and 27 percent for offices and employee break rooms. (Action Item 3) Approved 3-0

66. Approve a lease with Halibut Henry’s LLC for the Bellingham Cruise Terminal? Halibut Henry’s will offer baked goods, salmon, crab cakes, soups, sandwiches, salads and an expresso bar. The lease is for approximately 400 square feet and will be on a month to month basis. Rents will be based on 2 percent of all gross receipts. Halibut Henry LLC also operates a restaurant/cafe at the Bellingham airport. (Action Item 4) Approved 3-0

67. Approve a lease with Aluminum Boats America for Building 7 at the Fairhaven Marine Industrial Park? The Australian company builds passenger ferries and tourism vessels using aluminum and composite material using catamaran technology. The company was founded in 1999; it is establishing a U.S. presence. It plans on 25 employees within three to five years. The company used its 30-day due diligence period and cancelled the contract deciding to be locate in Anacortes because the railroad tracks prevented the launching of large vessels from the Bellingham site. (Action Item 5) Approved 3-0

Action Taken at April 17, 2012 Meeting

Shall the commission:

68. Approve an event and site use agreement with Allied Arts of Whatcom County for the Bellwether Arts Market? The port will pay Allied Arts $17,000 to produce the Bellwether Arts Market. The market will be open each Sunday in August from 11 a.m. To 5 p.m at the Tom Glenn Common. It is anticipated that the event will have 30 or more booths with arts, crafts, local farmers, face painting and live music. (Consent Agenda A) Approved 3-0

69. Approve an event and site use agreement with The Jazz Project for the Bellwether Jazz Festival? The port will pay The Jazz project $9,999 to produce a free public concert at Tom Glenn Common. The Jazz Project and its executive director Jud Sherwood produced the first Bellwether Jazz Festival in 2011, a free, one-day public concert. The 2012 festival will be a two-day event (September 7 and 8), the first day will be music inside a Bellwether restaurant and the second day a free public concert. (Consent Agenda B) Approved 3-0

70. Approve the application to reorganize the port’s general purposes Foreign Trade Zones and adopt the Alternative Site Framework? The port administers three general purpose zones (#129 – Bellingham, #130 – Blaine, 131 – Sumas). The zones allow U.S.-based companies to defer, reduce or eliminate U.S. custom duties on products admitted to the zone. The application consolidates the three zones into one and the Alternative Site Framework produces a streamlined process for companies anywhere in the country, not just within existing zones. Consent Agenda C (Resolution 1309) Approved 3-0

71. Approve a modification to the existing Foreign Trade Subzone agreement with BP West Coast Products? The original agreement was from 11/1/2002 to 4/30/2007, was renewed on 5/1/2007 and another renewal period begins on 5/1/2012. The annual BP payment to the port will increase from $12,500 to $14,000. (Consent Agenda D) Approved 3-0

72. Approve a lease with Frontier Airlines for air service at the Bellingham airport? The lease is for one year from 5/24/2012 through 5/23/2013 with one year renewals. The airlines will pay for ticket counter space and office space upstairs in the terminal building. As an inducement to locate in Bellingham, the airlines will pay one-half of the landing fees for the first twelve months of operation; the fuel flowage fees and aircraft rescue and fire fighting fees will be waved. Also, the port will reimburse the airline $3.00 per enplaned revenue passenger to compensate the airline for marketing expenses. (Action Item 1) Approved 3-0

73. Modify the lease with Allegiant Air for ground at the Bellingham airport? The terminal expansion project will require the modular building that Allegiant Air uses for flight crews and a commissary on the north end of terminal building to be relocated north of the construction area. The modular building will be increased from a 48’x60’ to 60’x 70 and the rent increased. (Action Item 3) Approved 3-0

74. Ratify a $1,456,021 estimated contract with Global Diving and Salvage of Seattle for services associated with the Squalicum Harbor boathouse fire? The contract covers the period 3/30/2012 through 4/25/2012 for removal, recovery and loss mitigation associated with a fire early in the morning on March 30. The bodies of the two people who died in the fire were recovered on April 5. (Action Item 4) Approved 3-0

75. Ratify a $175,000 estimated contract with NRC Environmental Services of Seattle for services associated with the Squalicum Harbor boathouse fire? Once the fire was extinguished the boathouse and vessels were declared a total loss. Twelve boats were destroyed in the fire creating a hugh amount of rubble. (Action Item 5) Approved 3-0