Port of Bellingham Commission

Action Taken at December 18, 2012 Meeting

Shall the commission:

187. Authorize the executive director to sign an agreement with the city of Bellingham to allow up to three free uses per year of the other’s facilities? The Port of Bellingham can use the following city facilities: Elizabeth Park gazebo, Maritime amphitheater and Fairhaven Village Green, Civic Field stadium, Joe Martin baseball field, museum rotunda room and Lightcatcher building, Bloedel Donovan and Fairhaven Park indoor facilities. (Consent Agenda A) Approved 3-0

188. Replace the basic rules and regulations governing reimbursement and payment of petty cash expenses? Petty cash amounts totaling $950 are established at the following offices: accounting, Squalicum, Blaine, airport and Cruise Terminal. Change funds totaling $3,150 are established at the following machines: Gate 12, Harbor Center, Gate 3, BCT locker, Bellingham airport baggage claim and Blaine Boating Center and the tills for Blaine and Squalicum employees. Consent Agenda B (Resolution 1313A) Approved 3-0

189. Transfer a lease from The Bayside Cafe to Latitude Restaurants Bellingham? The Bayside Cafe has leased space at the Harbor Center Building since 1994. On 10/1/2012, it unexpectedly closed and left and outstanding balance of $3,736. The new restaurant will open in April and employ approximately 50-60 employees during its peak season. The lease with Latitude Restaurants was extended until 12/31/2017 and can be renewed for three consecutive five-year periods. (Action Item 1/2) Approved 3-0

190. Modify the lease with The Landings at Colony Wharf? The wharf is located at 1020 C street and has leased approximately 3.52 acres of land from the port since 9/7/2006. At the 10/16/2012 meeting, vote #159, the commission approved an agreement with the city of Bellingham to exchange waterfront property. The port received all but two of the Colony Wharf parcels owned by the city and the option to purchase the two remaining Colony Wharf parcels. The lease modification increases the rent and keeps the lease on a month-to-month status. (Action Item 3) Approved 3-0

191. Authorize the executive director to spend $4.10 million to purchase the Bayview Center Office Building? The 36,000 square foot building was constructed in 2001 at 12 Bellwether Way. The price was discounted from $4.58 million in exchange for an agreement with Hotel Bellwether allowing them priority use of the ballroom. (Action Item 5) Approved 3-0

192. Authorize the president of the Industrial Development Corporation to sign an agreement with Western Washington University for a coordinated approach to funding and contracting with economic development service providers? (Commission meeting as the board of the Industrial Development Corporation.) At the 12/7/2010 meeting, vote #174, the commission acting as the IDC authorized the executive director to sign an agreement with the city of Bellingham and Whatcom County regarding a coordinated approach to funding and contracting with economic development service providers. This vote is committing the port to $59,060 or 27.47 percent of the total amount of $215,000, the county is committing 49.45 percent and the city 23.08 percent. (IDC Action Item 1) Approved 2-0; Michael McAuley recused himself citing a potential conflict of interest.

193. Authorize the executive director to sign an agreed order with the state of Washington for a remedial investigation/feasibility sturdy of the Westman Marine site? The site is located at 218 McMillan Avenue in Blaine. Beginning in 1949, the site was used for boatyard/shipyard operations first by Berg Shipbuilding Company, then Westman Industrial Company and finally Westman Maine. A 2002 report of the site identified the release of tributyltin; polycyclic aromatic hydrocarbons, metals and semivolatile organic compounds in sediment at the site. The site falls under the Model Toxics Control Act. The estimated cost of the study is approximately $625,000. (Action Item 7) Approved 3-0

194. Authorize the executive director to sign a cost share agreement with the estate of Carl B. Westman for one-third of costs associated with the agreed order and preparation of a draft action plan for the Westman Marine site? The Westman Industrial Company leased the site from the Port from 1976 through 1989. The estimated costs of the agreed order is $1,319,400. The estate will contribute up to a total of $439,600. (Action Item 8) Approved 3-0

195. Authorize the executive director to sign a cost sharing agreement and partial settlement with Bornstein Seafoods to complete the remedial investigation/feasibility study of the I&J Waterways site? At the 5/3/2005 meeting, vote #63, the commission authorize the executive director to sign an agreement with Bornstein Seafoods to share costs for a remedial investigation/feasibility study of the I&J Waterway site. Under this second agreement, Bornstein will contribute 30 percent, up to $147,250 of the total estimated cost of $477,500. The port and Bornstein have been labeled as potentially liable parties for contamination near Bellwether Way and are responsible for the cleanup. They are jointly seeking insurance sources to help cover some or all of the entire project costs. (Action Item 9) Approved 3-0

196. Authorize the interim executive director to sign a $85,800 contract (amendment #13) with Landau Associates of Edmonds to complete the remedial investigation/feasibility study of the Weldcraft site? This amendment includes a draft cleanup action plan; the final cleanup action plan is prepared by the state. This vote brings the total contract to $469,700 and the deadline is extended to 12/31/2013. (Action Item 10) Approved 3-0

197. Authorize the executive director to spend $85,287 for the purchase and installation of 140 seats at the Bellingham airport? The seats will be purchased from Washington State Correctional Industries and will be installed in the baggage claim and gate lobby areas. An FAA grant funds 90 percent of the purchase. A contingency fee of $8,528 brings the total amount to $93,815. (Action Item 11) Approved 3-0

198. Increase by $147,416 the contract (change order #4) 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. An FAA apron improvement project to the north and south of the terminal building was designed a year after the start of the terminal expansion so it added to the cost of the project. The FAA will fund 90 percent of the added costs. This increase brings the total authorized contract to $17,161,864. (Action Item 12) Approved 3-0

Action Taken at January 8, 2013 Meeting

Shall the commission:

1. Appoint Tamara Sobjack (director of finance) as auditor and Valerie Schorr (accountant) as deputy auditor for fiscal year 2013? (Consent Agenda C) Approved 3-0

2. Authorize the executive director to sell property valued at $10,000 or less? State law requires annual renewal of the authority to sell port surplus property. Consent Agenda D (Resolution 1029-R) Approved 3-0

3. Designate the director of finance as the official responsible for informing the public of the port’s intent to issue tax-exempt bonds? The designation expires on 1/31/2014. Consent Agenda E (Resolution 1183-J) Approved 3-0

4. Approve event and facility rental fees for 2013 and 2014? The rates will remain the same except for the Douglas Smith Conference Room; the rate will be reduced from $50 per hour to $30 per hour to increase use of the room. (Consent Agenda F) Approved 3-0

5. Reaffirm Chmelik, Sitkin, & Davis as the port’s general legal counsel for 2012? The hourly rate of $200 per hour established in 2006 will be increased to $225 per hour. (Consent Agenda G) Approved 3-0

6. Authorize legal counsel to sign contracts up to $158,392 with Anchor QEA and other consultants (including Floyd-Snyder and Landea Associates) to provide technical expertise for legal work related to the environmental department?The work includes advising the port on the management of multiple environmental cleanup sites, environmental liability, environmental cost recovery and litigation. (Consent Agenda H) Approved 3-0

7. Approve changes to the rules, regulations and procedures for Blaine and Squalicum Harbor in 2012? The housekeeping changes clarify language involving rules, regulations and procedures to more clearly define existing policies. Consent Agenda I (Resolution 1226-H) Approved 3-0

8. Adopt rental revenue standards for 2013? The rate structure will not change. (Consent Agenda J) Approved 3-0

9. Adopt liability insurance standards for fiscal year 2013? The standards will not be changed in 2013. (Consent Agenda K) Approved 3-0

10. Extend the delegation of certain administrative powers and duties to the executive director? At the 3/6/2012 meeting, vote #48, the commission voted to require commission approval of all international travel by staff. This vote repeals commission approval for staff travel to Canada. The administrative powers will run from 1/1/2013 to 1/31/2014. Action Item 1 (Resolution 1106-N) Approved 3-0

11. Select officers and regular port commission meetings for 2013? The officers will be: President Jim Jorgensen; Vice President Michael McAuley and Secretary Scott Walker. The regular meetings will continue starting at 3 p.m. on the first and third Tuesday of each month in the Harbor Center conference room. (Action Item 2) Approved 3-0

12. Approve nominations for commissioners to serve on organizations and committee? See footnote1 for details. (Action Item 3) Approved 3-0

13. Authorize the executive director to sign a $200,092 contract with URS of San Francisco, Calif., for design, permitting and bid support for the airport apron improvement project? The intent of the project is to provide for two overnight aircraft parking locations. The estimated cost is $2.2 million with 90 percent reimbursable by the FAA. (Action Item 4) Approved 3-0

14. Authorize the executive director to award the low bid of $107,613 to Axiom Division 7 of Lynden for the re-roofing of buildings at 2652 Harbor Loop and 401 Harris Avenue? Both buildings will receive a Thermoplastic Polyolefin membrane roof. A contingency fee of $16,142 brings the total contract to $123,755. The work was advertised and five bids were received. (Action Item 5) Approved 3-0

15. Modify the lease with Greenberry Industrial of Corvallis, Oregon? Greenberry Industrial is partneried with Superior Energy Services of Houston, Texas, to provide oil field service in Alaska. Construction activity has been scaled back so the company is requesting a reduction in warehouse and parking space. The lease will be converted to a month-to-month tenacy. (Action Item 6) Approved 3-0

16. Appoint Industrial Development Corporation officers and establish the date, time and location of meetings for 2013? (Commission meeting as the Industrial Development Corporation.) The officers will be: president Jim Jorgensen; vice president Michael McAuley; secretary Scott Walker and treasurer Rob Fix. IDC meetings will be held as needed in conjunction with regular port commissioner meetings. (IDC 2) Approved 3-0

17. Approve the 2013 Industrial Development Corporation budget? (Commission meeting as the Industrial Development Corporation.) The budget anticipates revenues of $32,624 and expenses of $128,561. The 2013 year-end balance is projected to be $165,563. (IDC 3) Approved 3-0

Action Taken at January 22, 2013 Meeting

Shall the commission:

18. Delegate certain administrative powers and duties to the executive director? At the 1/8/2013 meeting, vote #10, the commission extended the powers and duties from 1/31/2013 to 3/31/2013. This vote extends the powers until 1/31/2014. Consent Agenda B (Resolution 1106-O) Approved 3-0

19. Appoint four new members to the Marina Advisory Committee? They are: Jim Kyle, a commercial fisherman; Elizabeth Kilanowski, a resident of Squalicum Harbor; Bill Douglas, a career merchant mariner; and Ian Puchlik, who has moorage in Blaine. They will serve three-year terms. (Consent Agenda C) Approved 3-0

20. Transfer a lease from Spyglass Optik to Lynden Vision Clinic? A five-year lease with Spyglass Vision Clinic was approved at the 4/6/2010 meeting, vote #65. The lease with Lynden Vision Clinic for 1,400 square feet of space in suite 104 at 11 Bellwether Way will expire on 4/30/2015. (Consent Agenda E) Approved 3-0

21. Authorize the executive director to sign a $592,904 partial proof of loss statement with the Lexington Insurance Company for costs incurred in the boathouse fire? A boathouse fire at Squalicum Harbor on 3/30/2012, killed two people and destroyed 12 boats. The total estimated cost of environmental cleanup and damage to port property is $1,287,754. Additional payments are expected from other property and liability insurance carriers. (Action Item 1) Approved 3-0

22. Authorized the executive director to sign an agreement with the city of Bellingham and Whatcom County to hire a governmental affairs consultant? The port is responsible for $30,000 or one-third of the total $90,000 under this agreement. The consulting firm McBride Public Affairs of Olympia — represented by Tom McBride and Ben Bucholtz — will represent the interests of the city/county/port on state legislative issues, identify opportunities for staff and elected officials to testify before legislative committees and/or meet with members of the Legislature and work with Washington Associations of Cities, Counties and Ports in representing local interests. The consulting firm is also expected to monitor state government and strategically advise the local governments, prepare the legislative agenda for the upcoming season, research policy and handle all other intergovernmental services. The city of Bellingham will administer the contract. (Action Item 2) Approved 3-0

23. Authorize the executive director to sign a $20,000 agreement with Public Utility District #1 of Whatcom County to help fund a wireless broadband telecommunication system in east Whatcom County? At the 4/10/2012 meeting, vote #59, the Whatcom County Council voted to approve the recommendations by the Economic Development Investment Board for a $217,500 grant to build a system in the Maple Falls, Glacier, Kendall, North Columbia Valley, Silver Lake and and South Fork Valley areas. Private Internet service providers will distribute retail service to residences and businesses. (Action Item 3) Approved 3-0

24. Approve the renewal, lease modification and concession agreements with four car rental companies? The Hertz Corporation began renting vehicles at the Bellingham airport in January 1986; Budget Rent A Car in March 1986; Avis Rent A Car in March 1989 and Enterprise Rent A Car in May 2002. These agreements establish five-year leases effective 1/1/2013; the annual concession fee is increased from 8 percent to 10 percent; the vehicle charge increased from $3.82 per vehicle to $5.00 per vehicle and the per stall rate increased from $8.00 to $10.00. The port anticipates total revenue collected from the four companies to increase from $277,000 in 2012 to approximately $346,000 in 2013. (Action Item 4) Approved 3-0

25. Authorize the interim executive director to sign a $85,500 contract (amendment #7) with Landau Associates of Edmonds to increase the term and scope of the remedial investigation/feasibility study and cleanup plan for the Cornwall Avenue landfill? At the 7/3/2007 meeting, vote #85, the commission approved a contract with Landau Associates to finalize the remedial investigation/feasibility study of the Cornwall Avenue landfill. The port sold 49 percent of the landfill (11/15/2005 meeting, vote #111) to the city of Bellingham for $2,450,000. The property is located at the foot of Cornwall Avenue. Remedial action is required under the state Model Toxics Control Act. A draft remedial investigation/feasibility study was submitted to the state in 2003. This amendment brings the total contract to $687,610. (Action Item 5) Approved 3-0

26. Authorize the executive director to sign a $47,788 contact (change order #1) with Bellingham Marine Industries of Ferndale for wood waler and hardware replacement work at Gate 8? NW Explorations (yacht charters and sales) of Bellingham will be leasing the Quickie Lifts at Gate 8. The contract work will be performed in the fall of 2013 before the NW Exploration’s vessels arrive. This vote brings the total contract to $1,018,488. (Action Item 6) Approved 3-0

27. Approve a lease with Confluence Fly Shop in the Harbor Mall? The 600 square foot shop in suite 9 will sell fly fishing supplies, gear and equipment. The lease begins on 2/1/2013 and ends on 1/31/2015 with three additional two-year renewals. The rent for the two-year lease is $14,604. (Action Item 7) Approved 3-0

Action Taken at February 5, 2013 Meeting

Shall the commission:

28. Authorize the interim executive director to sign a $7,848 contract (amendment #1) with Vic Unick Construction of Ferndale for the Blaine Marina bulkhead replacement project? Blaine Marina has leased property in Blaine since the 1950s. The property is on the state’s hazardous sites list; petroleum hydrocarbons have been identified in the soil and groundwater. Additional work was required because drawings did not properly locate buried utilities and additional road work was required. The project is a Model Toxics Contract Act cleanup site. This amendment brings the total contract to $137,938. (Consent Agenda C) Approved 3-0

29. Authorize the sale of two vessels for the nonpayment of moorage fees? An auction that was scheduled for March 7 was cancelled. A (1976) 26-foot fiberglass sailboat had a moorage fee of $2,005 and a (1974) 30-foot fiberglass sailboat had a moorage fee of $1,835. The owners of the two boats paid the fees prior to the auction. (Consent Agenda D) Approved 3-0

30. Authorize the executive director to accept a $13,644 state grant for Quickie Lifts reimbursement? Quickie Lifts #1 and #2 were owned and operated by Marine Services Northwest (dba Boondock Boats & Motors). The business closed and defaulted under the terms of the port lease. The port commission wrote off $51,778 as a bad debt at the 9/7/2010 meeting, vote #125. The operation of the “quickie lift” on the tidelands resulted in an environmental liability under the Model Toxics Control Act of approximately $1,200,000. The commission at the 4/5/2011 meeting, vote #54, declared the “Quickie Lifts” surplus and authorize staff to sell them at a public action. There were no bids at the auction. The commission authorized the demolitions of the structures. The costs associated with the demolition are reimbursable under the state Derelict Vessel Removal Program. (Consent Agenda E) Approved 3-0

31. Renew and modify the lease with San Juan Airlines? The airlines has operated an air taxi service out of the Bellingham airport since 1988 and has leased terminal space since 2003. The new lease will run from 12/1/2012 through 11/30/2015 with options for two one-year renewals. (Consent Agenda G) Approved 3-0

32. Authorize the executive director to sign a $173,774 proof of loss statement with the Lexington Insurance Company for costs incurred in a windstorm? On 11/21/2010, a windstorm damaged the Cruise Terminal, Shipping Terminal and buildings at the Fairhaven Marine Industrial Park. The total cost of repairs was $198,774. The insurance company paid the total amount less the $25.000 deductible. (Action Item 1) Approved 3-0

33. Authorize the interim executive director to sign a $210,000 contract (amendment #1) with Heartland LLC of Seattle for the second phase of The Waterfront District strategic marketing plan? The original contract with the real estate consulting firm was for $75,000 was approved at the 6/5/2012 meeting, vote #97. Phase two includes market outreach; response analysis relative to economics, use, risk, timing, compatibility with vision and developer track record; deal negotiations and finalization of the deal agreement, market and financial analysis; graphic production and support; and client meetings. This amendment brings the total contract to $285,000 and extends it to 12/31/2013. (Action Item 2) Approved 3-0

34. Authorize the executive director to accept a $1,500,000 state grant for redevelopment of the Waterfront District? The city of Bellingham and the port jointly applied for the grant; they will each receive $750,000. The port will use the money for the retention or removal of inactive buildings. The city will use the money to design and construct phase one of the Whatcom Waterway Park, which will provide public access to the shoreline. (Action Item 3) Approved 3-0

35. Increase by $38,369 the contract (change order #7) 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. An FAA apron improvement project to the north and south of the terminal building was designed a year after the start of the terminal expansion so it added to the cost of the project. This order includes revisions to the floor coverings, an overhead door and reconfigured tenant spaces. The FAA will fund 95 percent of the added costs. The increase brings the total authorized contract to $17,200,232. (Action Item 4) Approved 3-0

36. Authorize the executive director to extend the two-part Marine Trades Program to 12/31/2013? The program began on 4/1/2011 and was scheduled to end on 3/31/2013. The moorage model passed at the 2/15/2011 meeting, vote #30, reduced the moorage rate for active commercial fishing vessels less than 80 feet from a rate of $6.92 to $5.90. At the 3/1/2011 meeting, vote #42, the commission delegated authority to the executive director to develop and implement a two-part program to promote the local fishing industry and marine trades community. The two-part program encouraged residents to moor their vessels in Whatcom County and port staff to work with local vessel owners, boat yards, suppliers and vendors to retain and promote local jobs. The original estimated cost for the two-year two-part program was $125,000; the new estimate for the three-year program is $90,000. (Action Item 5) Approved 2-1, Scott Walker opposed.

37. Approve a lease with LFS, Inc. for Building 7 and adjacent fenced storage yard at the Fairhaven Marine Industrial Park? The company has been leasing Buildings 1 and 2 comprising approximately 47,000 square feet of warehouse space. This new lease is for an additional 30,800 square feet of warehouse space.The lease is for five years with one five-year renewal option. (Action Item 6) Approved 3-0