Port of Bellingham Commission

Shall the commission:

148. Allow BP (British Petroleum) West Coast Products to amend the maturity date of $50 million in tax-free bonds sold to construct solid waste and sewage control facilities at the company’s Cherry Point refinery? (Public hearing held) The issue was authorized at the 12/5/2006 meeting, vote number 125. BP wishes to convert these bonds to a fixed rate mode. (Industrial Development Corporation Resolution 70) Approved 3-0

149. Allow BP (British Petroleum) West Coast Products to amend the maturity date of $61 million in tax-free bonds sold to construct solid waste and sewage control facilities at the company’s Cherry Point refinery? (Public hearing held) The issue was authorized at the 10/1/2007 meeting, vote number 111. BP wishes to convert these bonds to a fixed rate mode. (Industrial Development Corporation Resolution 71) Approved 3-0

150. Support Industrial Development Corporation Resolutions 70 and 71 allowing BP West Coast Products to amend the maturity date for $111 million in tax-free bonds? BP is solely responsible for the repayment of the bonds. The applicant also pays the port an annual serving fee. (Resolution 1286/1287) Approved 3-0

151. Authorize the issuance of $43,470,000 in revenue bonds? The Bellingham airport terminal expansion project will receive $30,250,000. 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 for construction management. Phase two will add up to an additional 43,000 square feet to the terminal. The gate 3 dredging and construction project will receive $10,566,000. The remaining money will be used for the debt service reserve fund. The $3,600,000 per year debt service payment will be covered by airport and marine moorage revenue. (Resolution 1288) Approved 3-0

152. Authorize the human resources manager to sign a $5,000 contract (amendment #1) with Waldron & Company of Seattle? At the 3/4/2010 meeting, vote number 48, the commission approved a $35,000 contract to conduct a search for a new executive director. The commission didn’t select an executive director from the initial candidates. More candidates were provided and a final selection was made. The large number of candidates increased travel costs from the original estimate. (Consent Agenda C) Approved 3-0

153. Annul the Current Industries, Inc. account in the amount of $13,764? The company provided job training and employment for developmentally disabled adults at 3720 Williamson Way. They signed a lease agreement with the port in February 1992 and filed for bankruptcy on 1/29/2010. The lease was terminated on 6/30/2010 and a claim filed with the bankruptcy court. This brings the 2010 write-off for real estate to $33,119. (Consent Agenda D) Approved 3-0

154. Authorize the executive director to sign a $1,408,339 contract (amendment #4) with URS Corporation of San Francisco to perform architectural design services and construction administration for the Bellingham airport passenger terminal expansion project? This amendment will fund design development ($947,869) and construction administration services ($460,470). The terminal was built to handle 9,500 passengers per month and the current passenger load is more than 30,000 per month. The terminal will be expanded from 26,000 square feet up to 90,000 square feet. The original contract was approved at the 3/3/2009 meeting, vote number 47 and amended at the 4/6/2010 meeting, vote number 62, 6/1/2010 meeting, vote number 95 and 8/17/2010 vote number 104. This amendment brings the total contract to $2,810,070. (New Business 4) Approved 3-0

155. Authorize the executive director to sign a $76,750 contract (amendment #1) with Anchor QEA of Seattle to perform engineering and design services for the Squalicum Creek restoration project? This project will help restore Bellingham Bay. At the 7/6/2010 meeting, vote number 103, Anchor QEA (formerly Anchor Environmental) was authorized to produce a conceptual plan for major components of the project: habitat enhancement of the creek estuary, modification of two bridges, removal of the concrete bottom between the two bridges and replacement of a sewer trunk line. This estimated cost of the project is $1,750,000 and will be financed by grants secured by the city of Bellingham and the port. This amendment brings the total contract to $131,750. (New Business 5) Approved 3-0

Shall the commission:

156. Authorize the executive director to apply for a $500,000 low interest loan from the Whatcom County Economic Development Investment Board? The loan will help fund the construction/renovation of the building at 300 Harris Street. The Economic Development Investment Board is funded by a sales tax rebate. The board was created by the Whatcom County Council to make recommendations to the council on local economic development projects. (Resolution 1289) Approved 3-0

157. Adopt the 2011 strategic budget? (Resolution 1290) Approved 3-0

158. Adopt the 2011 property tax levy? 2011 property tax levy is 29 cents per $1,000 of assessed valuation and tax levy is income estimated at $7,052,142. The revenue decrease from 2010 is estimated at $371,166. When the county assessor provides a final property assessment, staff will prepare a modified resolution. (Resolution 1291) Approved 3-0

159. Approve a ten-year lease with Index Industries, Inc for property located at 300 Harris Avenue and expenditures of $2,500,000 for building improvements? The 35-year-old company manufactures switches, sensors and controls for industrial vehicle, engine and equipment markets. The manufacturing facility is currently located in Stanwood. Approximately 14 Stanwood employees will work in Bellingham and 20 will be hired in Bellingham and may increase to 50 employees in three years. Monthly rent for the first year will be $16,435 and $21,444 in the final year. Revenue for the ten-year lease will be $3,216,645. (New Business 1) Approved 3-0

160. Authorize the executive director to sign a $258,405 contract with Mithun, Inc. of Seattle to perform architectural services for the building at 300 Harris Street? The previous vote authorized money to remodel the building for Index Industries (web name: Index Sensors & Controls). All improvements are to be designed with the intent of meeting LEED Gold certification. Construction should be completed by September 2011. (New Business 2) Approved 3-0

161. Authorize the executive director to sign a fill permit with the U.S. Army Corps of Engineers for the Bellingham airport wetlands strategy? The permit will allow 8.9 acres at the airport to be filled to allow for the terminal building expansion project. Approximately 37 acres of wetland will be created on state property on Slater Road adjacent to unnamed tributaries of Spring Creek. The total mitigation cost is estimated to be $1.9 million. (New Business 5) Approved 3-0

162. Authorize the executive director to sign a land use agreement with the state of Washington for the Slater Road wetlands mitigation site? The port will pay an annual fee of $10,000 per year for 10 years, maintain $2 million in liability insurance and allow public access to the site. The agreement will commence on 3/1/2011 and expire on 3/1/2021. (New Business 6) Approved 3-0