Port of Bellingham Commission

Action Taken at June 4, 2013 Meeting

Shall the commission:

91. Renew and modify three leases at the Bayview Center Building? At the 12/18/2012 meeting, vote #191, the commission authorized the purchase of the building for $4.1 million. The lease with the Tradewinds Capital Management for suite 201 will be renewed on a month to month basis. The lease with Goodrich & Associates for suite 215 will be renewed through 7/31/2016. The lease with Astoria Holdings for suite 209 will be renewed through 11/30/2015. (2486/2487/2497/Consent Agenda C/D/E) Approved 3-0

92. Authorize the executive director to sign a contract not to exceed $48,500 with Martin Associates of Lancaster, Pa., for an economic impact study? At the 4/1/2008 meeting, vote # 50, the commission authorized up to $50,000 for a study by Martin Associates to measure the job, income, business revenue and tax payments to the area economy by the marinas, cruise terminal, real estate tenants and airport activities for the base year 2007. This new economic impact study will provide a benchmarked comparison to the report completed in 2008. (2483/Action Item 1) Approved 3-0

93. Update the marine terminals tariff schedule? This updates housekeeping items to comply with new Federal Maritime Commission requirements. (2488/Action Item 2) Approved 3-0

94. Approve a lease with Bellingham HI, LLC for the construction and operation of a Holiday Inn at the Bellingham airport? A Holiday Inn with 150 rooms, underground parking, workout room, meeting space and restaurant will be constructed at the intersection of West Bakerview and Airport Drive at an estimated cost of $19-20 million. Approximately 80-90 full time employees will be hired, 40 for the hotel and 40-50 for the restaurant. The lease is for 50 years with one twenty-five renewal option. Construction must occur on or before 5/15/2014 and is expected to open by November 2015. (2489/Action Item 3) Approved 3-0

95. Modify a lease with the federal government for space in the former International Trade Building? The U.S. Department of Homeland Security (U.S. Customs and Border Protection) signed a five-year lease for 30,000 square feet of office, warehouse and parking spaces at the Bellingham airport building in December of 2004. The lease was renewed for one year in December 2009, December 2010 and December 2011. At the 6/7/2011 meeting, vote #89, the lease was modified to increase the number of aircraft tie-down spaces from four to 14. The yearly rent will be $305,838. A new 10-year lease begins on 12/15/2012 with two five-year renewal options. (2490/Action Item 4) Approved 3-0

96. Authorize the executive director to sign a restated no-build area easement with Fairhaven Village Inn, Shannon Properties and Gene and Constance Shannon? At the 11/6/2012, vote #168, the commission authorized the executive director to sign an easement with Shannon Properties LLC if the proposed apartment project is approved by the city of Bellingham? The ten foot no-build easement would have allowed the planned project to be build to the property line of the bluff area of the Fairhaven Marine Industrial Park and allow balconies, decks railings and architectural features to project into the non-build covenant property. This vote requires city of Bellingham approval to any changes. (2491/Action Item 5) Approved 3-0

97. Modify a lease with Alaska Airlines? Approximately 1,076 square fee of ticket counter, office and break room have been added to the main terminal. In the future, an additional 764 square feet of air cargo space and 211 square feet for crew training will be added for a total of 2,061 square feet of leased space. (2094/Action Item 6) Approved 3-0

98. Increase by $51,435 the contract (change order #17) with Dawson Construction of Bellingham for phase 2 of the airport expansion project? The original contract for $16,961,834 was approved at the 2/21/2012 meeting, vote #26. Two areas will be improved for Alaska Air Group, the air cargo facility and four offices for flight operations. The port will be reimbursed by Alaska Air Group. This change order brings the total authorized contract to $17,947,592. (2493/Action Item 8) Approved 3-0

99. Authorize the executive director to extend the janitorial services contract in the amount of $350,997 with American Building Maintenance for seven months? The contract is for 36 port facilities. This contract runs from 7/1/2013 through 1/31/2014 and includes a $35,100 contingency fee for a total of $386,097. The contingency fee will cover additional janitorial services at the airport terminal and Squalicum Harbor. When the airport expansion project is completed next January the contract will be put out for bid. (2495/Action Item 9) Approved 3-0

100. Authorize the executive director to sign a $27,287 contract (change order #1) with McKinstry Essention LLC for ductwork removal at port building #7? The original contract for $985,863 was approved at the 4/16/2013 meeting, vote #68. When the building #7 roof was removed at the Fairhaven Marine Industrial Park it was discovered that ductwork needed to be removed so a new fire suppression system could be installed to meet code requirements. A contingency fee of $6,764 brings the total to $34,051. (2496/Action Item 10) Approved 3-0

Action Taken at June 18, 2013 Meeting

Shall the commission:

101. Authorize the sale of one vessel for the nonpayment of moorage fees? An auction was held on July 11 for a 23-foot 1978 fiberglass sailboat with a moorage fee of $1,589; there were no bidders on the sailboat. Resolution 1319 (2522/Consent Agenda A) Approved 3-0

102. Declare boathouse 4M-09 at Blaine Harbor as surplus? The building was owned by the estate of Allen Deets; it was acquired by the port in lieu of $4,618 in delinquent (moorage, taxes and miscellaneous fees) charges. The assessor’s office values the structure at $13,000. (2521/Consent Agenda B) Approved 3-0

103. Authorize the executive director to sign a use permit with the Bellingham Sailing Foundation to allow a youth sailing program to use the Zuanich Point Park day dock? The Bellingham Yacht Club’s Youth Sailing Program is for kids ages 8-18. It was formed in 2009 and the first use permit was approved by the commission at the 3/2/2010 meeting, vote #42. The Zuanich Park dock is at the entrance of Gate 3; the permit will allow kids just learning boating to avoid the busy waterway of Gate 3. (2520/Consent Agenda C) Approved 3-0

104. Renew and modify two leases with at the Bayview Center Building? At the 12/18/2012 meeting, vote #191, the commission authorized the purchase of the building for $4.1 million. The lease with Nautigirl Brands retail clothing store for suite 100, will be renewed on a month-to-month basis through 5/31/2014.The lease with Bayside Therapy Associates for suite 220 is renewed through 7/31/2018. (2518/2519/Consent Agenda D/E) Approved 3-0

105. Approve a memorandum of understanding with Western Washington University and Western Crossings Development for the creation of a university facility in the Waterfront District? Western Crossings Development is a non-profit corporation created in 2009 for the purpose of planning a public /private waterfront facility. An approximate six acre area will be developed for university use in the Waterfront District. (2516/Action Item 1) Approved 2-1, Michael Mculey opposed.