Port of Bellingham Commission

Action Taken at April 16, 2013 Meeting

Shall the commission

63. Authorize the executive director to sign $290,989 contract (amendment #2) with Pacific Security (formerly Whatcom Security Agency) of Bellingham for security services? The number of hours per week will decrease by 71.5 so this contract will be $56,328 below the contract ending 5/31/2013. The contract runs from 6/1/2013 to 5/31/2014. (2304/Consent Agenda A) Approved 3-0

64. Approve a lease with the state of Washington for Suite 211 at #11 Bellwether Building? The state auditor will lease about 2,412 square feet for its office use. The lease begins on 5/1/2013 and ends on 4/30/2018. The rent will be a flat $4,808 per month for a five year total of $294,452. (2302/Consent Agenda B) Approved 3-0

65. Authorize the interim executive director to sign a $9,483 contract (amendment #2) 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 groundwater sampling for the bulkhead and pier repair. Pacific Pile & Marine suggested a different construction method which requires additional inspections. This amendment brings the total contract to $59,483. (2303/Consent Agenda C) Approved 3-0

66. Authorize the executive director to sign a lease with BMI (Bellingham Marine Industries) Properties Northwest for approximately two acres of land and waterway use adjacent to the C Street terminal site? BMI Precast concrete products will be poured at the site, loaded onto a barge and sent to the customer. BMI anticipates spending up to $200,000 in site improvements, initially 5-10 jobs and 30 new employees at full operation.This vote endorses minor changes in the lease approved at the 2/19/2013 meeting, vote #45. (2305-2306/Action Item 1) Approved 3-0

67. Modify the lease with The Landings at Colony Wharf? The wharf is located at 1020 C Street and has leased 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. To accommodate the proposed public barge ramp the area leased by Colony Wharf has been reduced by 3.23 acres. Rent has been reduced by approximately $3,840 per month.The lease will remain on a month-to-month status until a long-term lease is negotiated. (2294/Action Item 2) Approved 3-0

68. Authorize the executive director to sign a $985,863 in contracts for energy conservation measures at port facilities? At the 5/4/2010 meeting, vote #73, the commission approved an agreement with the state of Washington for a energy/utility conservation audit that was free, the vote was amended at the 12/7/2010 meeting, vote #176. The McKinstry Energy Services of Seattle did the preliminary energy audit and identified potential energy-saving measures. The renovations are to the Bellwether Ofice Building envelope and garage lighting, upgrades to the roofing and insulation at Fairhaven Marine Industrial Park Buildings #3 and #7 and exterior lighting upgrades at Fairhaven Station. McKinstry Essention LLC will provide professional services and construction services not to exceed $943,863 and the state Deparment of Enterprise Services will provide management services for $42,000. A state grant for $328,405 will offset the conservation measures. (2311/Action Item 3) Approved 3-0

69. Authorize the executive director to sign an agreement with the city of Bellingham to share a $1,500,000 state grant for the Waterfront District? The city of Bellingham and the port jointly applied for the grant; they will each receive $750,000. At the 2/5/2013 meeting, vote #34, the commission authorized the executive director to accept the grant. 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. (2308/Action Item 4) Approved 3-0

70. Authorize the executive director to accept a $3,800,000 state grant for Whatcom Waterway? The grant is for phase 1 of the shoreline remedial action. This grant brings the state total for the Whatcom Waterway to $6,404,057. (2295/Action Item 5) Approved 3-0

71. Authorize the executive director to request the state shift $3,800,000 in Whatcom Waterway grant money to the Central Waterfront? The Model Toxics Control Act funds will be reduced to $22,247,141 The shift will provide additional funds for the south shoreline portion of the remedial action project. (2295/Action Item 5) Approved 3-0

72. Approve changes to the rules, regulations and procedures for Blaine and Squalicum Harbor? A boathouse fire on 3/30/2012, killed two people and twelve boats were destroyed. At the 9/24/2012 meeting, vote # 187, the Bellingham City Council approved a marina boathouse chapter to the Bellingham Fire Code. The new code outlines safety regulations, requires permits and annual inspections of all harbor boathouses and establishes maintenance requirements for handling and storage of combustible materials. In addition, fire alarm and protection systems will be required in all the larger boathouse condominiums. This vote incorporates a new boathouse policy for Blaine and Squalicum Harbors requiring boathouse owners to make safety improvements within a two to five year timeframe, depending on the type of boathouse. It also updates Resolution 1226-H passed at the 1/8/2013 meeting, vote #7. 2307/Action Item 6 (Resolution 1226-I) Approved 3-0

73. Authorize the executive director to sign a $32,886 contract with Associated Project Consultants of Bellingham for design and cost estimate to install a fire sprinkler system at Squalicum Harbor? See the previous vote for detains on the fire that killed two people and destroyed 12 boats. (APC Engineers will perform engineering and construction support for the installation of a fire sprinkler system at Gate 3 of Squalicum Harbor. A contingency fee of $3,289 will bring the total contract to $36,175. (2296/Action Item 7) Approved 3-0

74. Authorize the interim executive director to sign a $17,000 contract (amendment #17) with Reid Middleton of Everett for the Gate 3 laterals F & G project? The next step in the recovery from the March boathouse fire is to perform preliminary design and permitting assistance to convert the former G dock east boathouse area of Gate 3 into open moorage slips through the addition of new finger floats and anchor piling with construction anticipated in 2014. This amendment brings the total amended amount to $1,212,031.(2297/Action Item 8) Approved 3-0

75. Authorize the executive director to sign a $45,000 contract (amendment #1) with Bellingham Marine Industries of Ferndale for multiple marine repair projects? 1. Squalicum Harbor boat launch and rise station: existing floats and piling will be replaced, the concrete ramp repaired and extended and the trailer rinse area upgraded. 2. Squalicum inner harbor float repairs: there will be structural repairs at Gates 6, 8 and 9. 3. Bellingham Cruise Terminal timber replacement: wing walls at Berth #1 will be replaced with a floating crane. Unanticipated construction problems were uncovered with fender timbers, asphalt disposal and the boat washdown piping systems.This amendment brings the total contract to $1,063,489. (2298/Action Item 9) Approved 3-0

76. Authorize the executive director to spend $116,914 to purchase Axis surveillance cameras for the Bellingham airport? Forty four surveillance camera were part of the airport terminal expansion project. Sixteen bids were received using the Washington State Department of Enterprise Services Electronic Business Solutions. K-Engineering and port staff evaluated the bids and rated Axis and Pelco bands to be approximately equivalent. The camersa had to work with the existing Lenel Security Platform software. Pelco and Axis set up demonstration cameras for port staff testing. The staff concluded that the two were not equal and that the Axis brand was the superior product. (2300/Action Item 10) Approved 3-0

77. Increase by $204,948 the contract (change order #13) 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. The security upgrades are to door security and hardware systems that govern access into restricted areas. Additional security measures include a holding cell for detainees and two glass walls between the security checkpoint and the public area to allow the monitoring of both areas simultaneously. This increase brings the total authorized contract to $17,700,285. (2301/Action Item 11) Approved 3-0

78. Modify the lease with Halibut Henry’s at the Bellingham Cruise Terminal? The lease will be changed to a seasonal operation from April through September. The rent remains at 2 percent of gross sales. (2299/Action Item 12) Approved 3-0

Action Taken at May 7, 2013 Meeting

Shall the commission

79. Modify the rental agreement with the Bellingham International Maritime Museum? Since 2005, the museum has been renting approximately 3,000 square feet of warehouse space at 800 Cornwall Avenue. The rental space will increase to 6,000 square feet. (2328/Action Item #1) Approved 3-0

80. The 3/19/2013 meeting, vote #55, erroneous reported this vote.The vote scheduled for that meeting but postponed. Approve a new lease agreement with Halibut Henry’s? The owners have lease space at the Bellingham airport since 1999. Henry’s will occupy approximately 461 square feet of retail food, beverage and gift shop space in the terminal building, 129 square feet of retail space in the secure portion of the terminal and 692 square feet in the food service preparation area for a total of 1,282 square feet. The lease commences on 8/1/2013 and expires on 4/30/2018 with one five-year renewal option. (2333/Action Item 2) Approved 3-0

81. Increase by $92,017 the contract (change order #15) 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. Halibut Henry’s currently occupies five difference spaces in the terminal. The five spaces will be consolidated into a single retail space and connected support area. This change order brings the total authorized contract to $17,792,302. (2329/Action Item 3) Approved 3-0

82. Increase by $103,855 the contract (change order #16) 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. The federal government (Transportation Security Administration) will reimburse the port 95 percent of HVAC and plumbing construction costs associated with rooms 150, 152, 165 and 168. This change order brings the total authorized contract to $17,896,157. (2330/Action Item 4) Approved 3-0

83. Authorize the executive director to sign a $70,134 contract (amendment #31) with Anchor QEA of Seattle for the phase 1 of the Whatcom Waterway cleanup project? This amendment is for additional design and permitting services for the “C” Street terminal facility. A western portion of the Colony Wharf site will be converted to a port operated stormwater collection and treatment system requiring a stormwater permit. The project may be eligible for Model Toxics Control Act funding. This amendment brings the total contract to $8,324,928. (2331/Action Item 5) Approved 3-0

84. Authorize the executive director to sign a $50,000 contract with Reid Middleton to perform a condition survey, analysis and professional engineering services on the Bellingham Shipping Terminal? The structural survey will evaluate piling, pier support structure and mooring dolphins at the chemical dock and recommend repairs, if needed, to provide barge mooring. A contingency fee of $5,000 brings the total to $55,000. (2332/Action Item 6) Approved 3-0

Action Taken at May 21, 2013 Meeting

Shall the commission

85. Authorize the executive director to sign a $170,553 contract (amendment #14) with Aspect Consulting of Seattle for construction oversight of the caustic plume/cell building interim action? More mercury contamination has been encountered than planned requiring additional on-site oversight and monitoring, installing new lower sand wells and eight sample wells. This amendment reinstates an omitted contingency fee of $23,153 bringing the total amended contract to $2,497,051. (2431/Action Item 1) Approved 3-0

86. Authorize the executive director to apply for a state grant to fund a remedial investigation/feasibility study 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 grant will allow the port to initiate a remedial investigation/feasibility stud of the site. (2432/Action Item 2) Approved 3-0

87. Authorize the executive director to accept an $150,000 state grant (amendment #3) for the Blaine Marina site? The site has been listed by the state as falling under the Model Toxics Control Act. The site cleanup will be a multi-phase process. Previous environmental investigations have identified petroleum hydrocarbons in the soil and groundwater. Two contracts have been signed with Landau Associates of Edmonds to environmental remediation. The first contract for $120,000 was approved at the 10/4/2011 meeting, vote #148 and the second contract for $278,100 at the 9/18/2012 meeting, vote #151.(2433/Action Item 1) Approved 3-00

88. Authorize the executive director to sign a $28,800 contract amendment with Landau Associates of Edmonds to provide environmental support related to the Yorkston Oil and Roeder Avenue inactive tank farm site? The port has owned the Yorkston property since 1931 and leased the site to: Petroleum Navigation Company (1931 to 1945), Whatcom Petroleum Company (1931 to 1936), Signal Oil Company/Standard Oil of Exxon Company USA (1975 to 1977) and Yorkston Oil Company (1977 to present).California (1937 to 1967), Humble Oil and Refining Company (1975 to 1977). Environmental investigations confirmed hydrocarbons in soil and groundwater at concentrations that required action under the state Model Toxics Control Act. Starting in the 1930s, several properties located near the intersection of Roeder Avenue and Squalicum Parkway were operated as bulk fuel fueling facilities by Atlantic Richfield, EXXON and Yorkston Oil Company. An environmental site assessment completed in 2002 determined that the bulk fueling activities resulted in petroleum and hydrocarbons in the soil and groundwater. (2434/Action Item #4) Approved 3-0

89. Authorize the executive director to reimburse the state of Washington $56,642 for port signage along Interstate 5 and State Route 11? Port staff coordinated with the state the design and installation of directional signage. Interstate 5 signage: Squalicum Harbor, Bellwether on the Bay, the Waterfront District and the Bellingham Cruise Terminal. Fairhaven signage: bus station, Amtrak station, cruise ships, Fairhaven District and Alaska ferry. The city of Bellingham installed signage along Stat Route 11 through Fairhaven and along Harris Avenue to the Alaska ferry terminal. (2435/Action Item #5) Approved 3-0

90. Modify a lease with the Boundary Fish Company? The current twenty-five year lease began on 11/1/2009 and ends 10/31/2034. The fish company has been a Blaine Harbor tenant since 1980. It plans on constructing a 5,500 square foot building to expand their crab and fish processing operations with an additional fifteen to twenty employees. The modification will increase the leased space by 3,484 square feet and include the portion of Berg Street adjacent to their premises. (2436/Action Item 6) Approved 3-0