Port of Bellingham

43. Certify the sale of seven vessels for unpaid moorage charges? Four of the vessels are commercial (North Pass, Miss Melanie, Rena Marie and Five Brothers) and three are pleasure craft (Miracle, The Big Ugly, and Elinor V). The auction was held on May 23, 2002. Approved 3-0

44. Authorize the executive director to enter into an interlocal agreement with Whatcom County, City of Bellingham and the Whatcom County Council of Governments to unite on federal issues? There have been several such agreements used in the past to help address federal issues that were either legalistic or financial in nature. Later this year similar cooperation will be needed in regards to the location of the Alaska Ferry in Bellingham. The port has a budget $10,000 for this agreement. Approved 3-0

45. Invest another $392,000 for the environmental cost recovery project to create a total of $1,171,000 for the cost recovery project? The port’s legal efforts to secure insurance claims from Lloyds of London for environmental damage of port property has exceeded the budgeted amount of $779,000 and another $392,000 is needed this year. The over-budget spending is due to an aggressive effort by the Lloyds lawyers in questioning witnesses and investigating the port’s claim. For example, the port staff depositions on “site history” were to have taken six days. Currently the lawyers for Lloyds of London have taken 16 days of testimony and only covered four of the 20 sites; at this rate will take months to finish the process. For additional information, see the footnote on page 14 of the January 2002 issue. Approved 3-0

46. Authorize the executive director to sign a contract to supply financial support to the City of Ferndale for signal improvements on Slater Road north of the airport? This request was anticipated and $50,000 was budgeted for it in the 2002 capital budget. The project will make improvements that the port would eventually have to do itself at much greater expense, as it develops the port property in the area for commercial and industrial use.The port will now have greater leverage and latitude in its development efforts. Approved 3-0

47. Amend an existing agreement with Landau Associates to increase the funding for a remedial investigation/feasibility study at the Cornwall Avenue landfill site? An increase of $112,600 will bring the total cost to $261,920 and comes from a request by the Washington State Department of Ecology for additional sampling by the end of this year. DOE has agreed to pay $75,000 of the additional costs and the remaining $37,600 will come from the port ($4,700), the City of Bellingham ($28,200) and the Department of Natural Resources ($4,700). The increase will pay for sampling, report preparation and response to agency and public comment. Approved 3-0

48. Authorize the executive director to carry out a contract with Landau Associates for an upland remedial investigation at the former Weldcraft site? The study is to find the extent of the environmental damage and potential requirements for its cleanup under the Model Toxics Control Act. The study (to be finished within three months of the authorization) is needed before cleanup can begin. Approved 3-0

49. Authorize the executive director to excute a voluntary cleanup program agreement with the Washington State Department of Ecology for the former Weldcraft site? An additional $5,000 is needed to cover ecology staff review of the site on 10th Street near Douglas. After the final remedial investigation of the site is finished, the port and ecology will determine how best to clean up the area and apply for a grant through the Model Toxics Control Act. Approved 3-0

50. Authorize the executive director to execute a grant amendment for the Blaine Harbor breakwater replacement project? The Interagency Council for Outdoor Recreation has recently raised the percentage of the project it is willing to fund from 10 percent to 20 percent. Currently there are no additional funds available, but the port may apply for further reimbursement later this year when the unused portions from other agency grants become available. The port is positioned to get additional reimbursements. Approved 3-0

51. Change the moorage rates at Squalicum and Blaine Harbors? The current formula for moorage has not kept pace with the actual costs. The formula assumed a 100 percent occupancy rate and did not take into account the 25 percent of boaters that take advantage of a 10 percent discount for yearly payment. To correct this, it is recommended that the debt coverage factor be adjusted by an initial ten cents a foot in 2002 and then escalate at 5.5 percent per year through 2020. The remaining 2/3 of the rate will be adjusted based on the previous year’s actual expenses. This will result in $12.8 million in 2020 for capital investments while meeting all debts and bond covenants. The new rate of $4.47 per lineal foot will become effective June 1, 2002. (Resolution 1163) Approved 3-0

52. Approve a new lease with Washington Crab Producers? This lease will allow them to temporarily relocate for the months of October to December 2002 so the port may do needed work to the end-pier and breakwater at Blaine Harbor. The lease establishes a seasonal lease for the three months at $1,138 per month, twice the old monthly rate. The new contract will increase public access to the pier. Approved 3-0

53. Modify a rental agreement with Halibut Henry’s? Since 9/11 this espresso, snack bar and gift shop at the Bellingham International Airport has seen a large decrease in business and is seeking to change their rent from a flat $939 per month to 6.2 percent of their total monthly gross. They have dropped from $65,000 (4th quarter 2000) per quarter to $47,000 per quarter (since 9/11). The port will actually be receiving more per month over the flat rate as the sales start to pick up. Approved 3-0