Port of Bellingham Commission

Action Taken at November 6, 2012 Meeting

Shall the commission:

161. Authorize the interim executive director to sign a $24,941 contract (amendment #1) with Materials Testing & Consulting of Burlington for marine inspection and testing services? The testing and inspections will be performed at the shipping terminal and will cover pile driving, field welding and goundwater sampling for the bulkhead and pier repair. (Consent Agenda C) Approved 3-0

162. Approve a five-year lease (amendment #1) with the federal government for 1,500 square feet of space in the Bellingham airport main terminal building? The initial lease was approved in November 2007, this amendment is the first of three five-year options. Five years of rent with the Transportation Security Agency will total $235,000 and will run from 11/1/2012 through 10/31/2017. (Consent Agenda D) Approved 3-0

163. Amend the lease with Bellwether Gate B, LLC (amendment #1)? The construction of Building B was substantially completed in 2010. This vote will reduce the asset requirements by lenders from one billion dollars to $500 million to allow local and regional banks to offer financing. (Consent Agenda E) Approved 3-0

164. Amend the lease with Bellwether Gate C, LLC (amendment #3)? The construction of Building C was substantially completed in 2012. This vote will reduce the asset requirements by lenders to allow local and regional banks to offer financing. (Consent Agenda F) Approved 3-0

165. Authorize the interim executive director to sign an alteration to Allegiant Air’s proposed commissary building site plan? Allegiant Air is preparing to build a 9,000 square foot commissary building where their modular unit was located before it was moved for the terminal expansion. The alteration will allow the eastern boundary of the building to encroach on a sewer line by four feet. There is sufficient room to relocate the line should replacement be necessary. (Action Item 1) Approved 3-0

166. Authorize the interim executive director to award the second lowest bid of $212,287 to Rhema Electric of Mt. Vernon for electric upgrades to webhouses #2, #3 and #4? The low bid by Elite Electric was determined to be non-responsive because the bid bond was not validated. The antiquated electric system will be replaced in each webhouse. (Action Item 2) Approved 3-0

167. Authorize the executive director to sign a $448,785 contract (amendment #2) with Floyd/Snider of Seattle to complete a remedial investigation/feasibility study at the Harris Avenue shipyard? The Harris Avenue shipyard site includes upland and aquatic land that is currently used for shipyard and boat manufacturing operations. The port entered into an agreement with the Department of Ecology in 2002 to perform a remedial investigation/feasibility study for contaminated marine sediments under the Model Toxics Control Act. A draft sediments remedial investigation/feasibility study was completed in 2004. The original contract was approved at the 5/6/2008 meeting, vote #66, it has been interrupted by a series of state delays. This amendment brings the total contract to $1,129,590. (Action Item 3) Approved 3-0

168. Authorize 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 will allow 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. (Action Item #4) Approved 3-0

169. Approve a lease renewal and modification with Bornstein Seafoods? The seafood company has been a port tenant for over 60 years. The lease was originally approved in 1980 and modified every first years. This renewal runs from 11/1/2009 through 10/31/2014. The rent over the five years will be $323,813 and lease can be renewed three more times. (Action Item #5) Approved 3-0

Action Taken at November 20 Meeting

Shall the commission:

170. Modify the lease with SKM Enterprises LLC a/k/a Zazen Salon Spa? The lease for 11 Bellwether Way #102 will be modified from 10 years to two years. It will run from 11/1/2012 through 10/31/2014 with two consecutive two-year renewal periods. (Consent Agenda 2) Approved 2-0, Jim Jorgensen absent.

171. Approve a terminal services agreement (amendment #3) with the state of Alaska? The original agreement began in 1989 and expired on 9/30/2012. The services agreement for the Alaska ferry (Alaska Marine Highway System) includes staffing for ticketing, reservations, vehicle embarking and disembarking and janitorial services for ferries. This amendment runs from 10/1/2012 through 9/30/2015. (Consent Agenda C) Approved 2-0, Jim Jorgensen absent.

172. Renew and modify a lease (amendment #1) with Pacific Cruises Northwest, Inc. d/b/a San Juan Cruises? Pacific Cruises Northwest has been operating out of the Bellingham Cruise Terminal since 6/18/1991. This renewal and modification provides for three more one-year renewal options. This amendment runs from 11/1/2012 through 10/31/2013 with four one-year renewal options. (Action Item 1) Approved 2-0, Jim Jorgensen absent.

173. Adopt the 2013 strategic budget? Public hearing held. (Resolution 1317) Approved 2-0, Jim Jorgensen absent.

174. Adopt the 2013 property tax levy? The 2013 property tax levy is 29 cents per $1,000 of assessed valuation and tax income is estimated at $6,719,000. The revenue will be the same as the 2012 property tax levy. When the county assessor provides a final property assessment, staff will prepare a modified resolution. (Resolution 1318) Approved 2-0, Jim Jorgensen absent.

175. Authorize the executive director to sign $1,913,529 in contracts to implement the 2013 employee benefits program? The 2013 increase is 2.34 percent. The port fs share is $1,663,168 for medical; $181,596 for dental and vision; $17,375 for life/accidental death/dismemberment; $21,414 for long-term disability and $2,742 for employee assistance. The employees monthly share for families it is $118.18. The medical costs do not include a broker fee of $27,234. (Action Item 3) Approved 2-0, Jim Jorgensen absent.

176. Incorporate the capital projects contained in the 2012 strategic budget into the Comprehensive Scheme of Harbor Improvements? (Public hearing held) The improvements are: Blaine wharf district master plan; Sumas international cargo terminal; Bellingham airport master plan; Squalicum harbor improvements; Bellingham shipping terminal master plan and Fairhaven improvements. Action Item 4 (Resolution 1316) Approved 2-0, Jim Jorgensen absent.

Action Taken at December 4, 2012 Meeting

Shall the commission:

177. Terminate a lease with the Upper Skagit Indian Tribe and approve a land lease for the same property with Blaine Seafoods? At the 11/3/2009 meeting, vote #165, the Upper Skagit Indian Tribe signed a 20-year lease for the former Dakota Fisheries property. The tribe purchased Dakota Fisheries to operate a fish buying facility at the site (285 Marine Drive) in Blaine site to supply their processing facility in La Conner. Blaine Seafoods will use the property to purchase and process seafood. (Consent Agenda 3) Approved 2-0, Jim Jorgensen absent.

178. Approve a lease with Above Dawn P.L.L.C. d/b/a IN8 Family Chiropractic at the Harbor Mall? Approximately 1,131 square feet will be the premises for chiropractic and message therapy. The two-year lease will begin on 12/1/2012, end on 1/31/2014 and be eligible for five two-year renewals. The rent for the two years is $31,510. (Consent Agenda D) Approved 2-0, Jim Jorgensen absent.

179. Authorize the interim executive director to sign a $18,696 contract (amendment #2) with Argus Pacific of Seattle to survey remaining buildings in the Waterfront District? The buildings are the digester building, the chipping plant and adjacent chip silo, the alcohol plant and the board mill. They will be inspected for asbestos, assessed for lead based paint and potential PCB-containing light ballasts and a written report prepared with recommendations for abatement. This amendment brings the total contract to $67,203. (Action Item 1) Approved 2-0, Jim Jorgensen absent.

180. Authorize the interim executive director to sign a $104,535 contract (amendment #2) with ICF International of Fairfax, Virginia, to perform historic preservation consulting services for the Waterfront District project? The buildings are located on the former Georgia-Pacific property. A report by Johnson Architects showed the redevelopment potential of the 11 remaining structures. Any historically valuable artifacts identified by ICF International will be removed and stored for potential incorporation in future waterfront projects. A $5,000 contingency fee brings the amended contract to $150,698. (Action Item 2) Approved 2-0, Jim Jorgensen absent.

181. Authorize the executive director to sign a $943,093 contract (amendment #8) with URS Corporation of San Francisco to perform construction support services for the Bellingham airport expansion project? URS has been involved in the design of the building and performed construction administration for the terminal expansion project. This amendment will address redesign changes by the Federal Aviation Administration and Transportation Security Administration and the federal government will pay for the changes. The original contract was approved at the 3/3/2009 meeting, vote #47, and amendment seven at the 9/18/2012 meeting, vote #153. This amendment brings the total contract to $5,857,497. (Action Item 3) Approved 2-0, Jim Jorgensen absent.

182. Authorize the executive director to award the low bid of $229,954 to RAM Construction of Bellingham for the Chevron subarea cleanup at the Central Waterfront site? Approximately 1,360 tons of petroleum-contaminated soil will be removed and 11 tons of creosote piling stubs will be extracted near the former Chevron Oil Co. site and transported to a disposal site. A geomembrane liner will be placed on the bottom and sides and backfilled with 1,600 tons of capping sand, filter gravel, armor stone and “fish mix” gravel. This site falls under the Model Toxics Control Act making 50 percent of cleanup costs eligible for state grants. The work was advertised and six bids were received. The engineer’s estimated cost of the project was $359,248. A contingency fee of $23,000 brings the total to $252,954. (Action Item 4) Approved 2-0, Jim Jorgensen absent.

183. Authorize the interim executive director to sign a $134,800 contract (amendment #2) with Anchor QEA of Seattle for interim action on the remedial investigation/feasibility study of the Central Waterfront site? The original contract was approved at the 5/14/2012 meeting, vote #90. The site is approximately 55 acres of industrial property, used for bulk fueling, boat yard operations, rock crushing and municipal waste disposal. This amendment is for construction management and preparation of an interim action report. This site falls under the Model Toxics Control Act making 50 percent of cleanup costs eligible for state grants. This amendment brings the total contract to $458,930. (Action Item 5) Approved 2-0, Jim Jorgensen absent.

184. Authorize the executive director to accept a $145,000 state grant (amendment #5) for the remedial investigation/feasibility study of the Harris Avenue Shipyard site? The Harris Avenue shipyard site includes upland and aquatic land that is currently used for shipyard and boat manufacturing operations. The port entered into an agreement with the Department of Ecology in 2002 to perform a remedial investigation/feasibility study for contaminated marine sediments under the Model Toxics Control Act. A draft sediments remedial investigation/feasibility study was completed in 2004. The original contract was approved at the 5/6/2008 meeting, vote #66, it has been interrupted by a series of state delays. This amendment increases total cleanup costs to $2,120,082 and increases the state contribution to $1,060,041, which is 50 percent of the total cost and the amount available under the Model Toxics Control Act. (Action Item 6) Approved 2-0, Jim Jorgensen absent.

185. Authorize the executive director to sign a $52,054 contract (amendment #2) with Bennett Engineering of Bellingham to perform the Bellingham airport woodwaste landfill monitoring and reporting services for 2013? The Whatcom County Health Department issued the permit for the closure of the woodwaste landfill site (12/7/2010 meeting, vote #165). It is anticipated that woodwaste post-closure monitoring, water sampling and reporting will be required for 15 to 20 years. Bennett will conduct monthly landfill cover inspections, perform quarterly water sampling, gas monitoring and file quarterly reports. Bennett will also do sampling and reporting as required by the Pollutant Discharge Elimination System. This amendment brings the total contract to $153,054 (Agenda Item 7) Approved 2-0, Jim Jorgensen absent.

186. Approve a lease with the Bellingham Metal Art Guild for the Harbor Mall? The 600 square feet will be used by the newly formed non-profit guild of artists, students and teachers for classes, workshops, lectures and a metal arts gallery and studio. The rent for one-year is $6,864. The lease runs from 12/1/2012 through 11/30/13 and has four one-year renewal periods. (Action Item 8) Approved 2-0, Jim Jorgensen absent.