Port of Bellingham Commission

Action Taken at March 31, 2015 Special Meeting

Shall the commission:

52. Declare certain Waterfront District property surplus? At the 1/18/2005 meeting, vote #17, the commission voted to acquire the 74-acre Georgia-Pacific Corporation property. The land was obtained in exchange for the port’s agreement to perform specified environmental remediation on it, the property is now called the Waterfront District. In the following vote Harcourt Development of Dublin, Ireland, will gain certain rights and responsibilities to related development within the 18.8 acres declared surplus by the this vote. 1560/Action Item 1 (Resolution 1340) Approved 3-0

53. Authorize the executive director to sign a master development agreement with Harcourt Development of Dublin, Ireland, for 18.8 acres within the Waterfront District? At the 2/18/2014 meeting, vote #30, the commission authorized the executive director to sign an exclusive negotiating agreement with Harcourt Developments Limited to redevelop 11 acres in the Waterfront District. The negotiating agreement was extended at the 7/15/2014 meeting, vote #101. At the 11/4/2014 meeting, vote #140, the commission authorized the executive director, staff and/or commissioner to travel to Ireland to visit the Harcourt Developments Limited facility in Dublin to look at the balance sheet, see Harcourt’s projects, speak to community leaders and observe the company firsthand. Harcourt will pay the port $200,000 for the Granary Building and $20 per square foot (increasing 3 percent annually) to acquire additional property as future building projects. (5161/Action Item 2) Approved 3-0

Action Taken at April 7, 2015 Meeting

Shall the commission:

54. Modify a lease agreement with Bellingham HI (amendment #6) for the proposed hotel at the Bellingham airport? The original lease was approved at the 6/4/2013 meeting, vote #94, it was for the construction and operation of a Holiday Inn at Bellingham airport with 150 rooms, underground parking, workout room, meeting space and a restaurant to be constructed at the intersection of West Bakerview and Airport Drive at an estimated cost of $19-20 million. The lease was for 50 years with one 25 year renewal option. This modification incorporates changes requested by the lender (Columbia Bank) as a condition to fund 75 percent of the project’s cost and provides the port’s consent to a $16 million loan secured by Bellingham HI’s interest in the lease. This modification acknowledges possibilities of Bellingham HI rebranding the hotel, the lender or its successor — if it acquires the property — to repurpose the site. (5175/Action Item 2) Approved 2-0, Jim Jorgensen absent.

55. Approve a lease with Bellwether Real Estate LLC and authorize the executive director to sign a modification of leases with Bellwether Real Estate LLC for accelerated occupancy? This new lease is for suite 201 at 11 Bellwether building will be for two years beginning on 4/15/2015, with three consecutive two-year renewals. Occupancy for approximately 3,000 square feet will be phased in over an 11 month period. Tenant foresees accelerated occupancy. Rent will be phased in based on occupancy. If the tenant accelerates occupancy, the lease will be modified with rent adjusted proportionately to reflect usage of increased square footage. The nominal rent is $91,586. Additional rent for renewal periods will be realized if the lease is renewed. (5176/Action Item 3) Approved 2-0, Jim Jorgensen absent.

56. Authorize the executive director to sign a $64,278 contract with Aspect Consulting of Seattle (amendment #1) to prepare construction and monitoring plans for soil removal at the pulp/tissue unit of the former GP West site? The original contract was signed at the 12/2/2014 meeting, vote #148. The 74-acre site is divided into the pulp/tissue and chlor-alkali remedial action units. The 31-acre pulp/tissue unit cleanup includes the removal of petroleum impacted soil, monitored natural attenuation of contaminated groundwater, capping throughout the site to prevent direct contact with contaminated soils and institutional controls to ensure the long-term integrity of the cleanup action. This amendment authorizes Aspect Consulting to prepare construction and monitoring plans for the pulp/tissue portion of the site. The amendment brings the total authorized amount to $280,611. (5177/Action Item 4) Approved 2-0, Jim Jorgensen absent.

57. Authorize the executive director to sign a $52,140 contract with Kennedy/Jenks Consultants of Federal Way (amendment #6) for the wharf portion of the stormwater improvements project? The original contract was approved at the 5/5/2014 meeting, vote #66. The port was awarded a $1.5 million state grant for the stormwater improvement project. This vote authorizes Kennedy/Jenks Consultants to perform flow modeling, additional survey, and to design the stormwater treatment system for the wharf portion of the project. This amendment brings the total authorized amount to $226,704. (5178/Action Item 5) Approved 2-0, Jim Jorgensen absent.

58. Authorize the executive director to sign a $26,000 contract (amendment #1) with Reid Middleton, Inc. of Everett to perform additional engineering services for the Fairhaven boat launch floats and piling replacement project? The original contract was approved at the 5/5/2014 meeting, vote #67. This is the second of three phrases, it will allow Reid Middleton Inc. to perform building permit assistance and construction assistant services. This amendment brings the total authorized contract to $52,950. (5179/Action Item 6) Approved 2-0, Jim Jorgensen absent.

59. Approve the amended and restated agreement with the Whatcom Council of Governments? At the 2/8/1977 meeting, the commissioners passed a resolution to participate, as a voting member, in the Whatcom Council of Governments. It has requested that the commission agree to and accept an amended and restated agreement to participate, as a voting member, in the Whatcom Council of Governments. 5180/Action Item 7 (Resolution 1341) Approved 2-0, Jim Jorgensen absent.

Action Taken at April 21, 2015 Meeting

Shall the commission:

60. Authorize the executive director to sign a $5,681 change order with Razz Construction of Bellingham to dispose of a boathouse located in Squalicum outer harbor? This change order is brought before the commission because it is beyond the scope of the original contract for a sprinkler system upgrade. The original contract was for $1,174,478 and approved at the 11/4/2014 meeting, vote #137. During recent wind events, the boathouse sustained significant damage requiring major repair or replacement. This amendment brings the total authorized contract to $1,180,159. (5200/Consent Agenda B) Approved 3-0

61. Authorize the sale of two vessels for the nonpayment of moorage fees? An auction will be held on May 15 for a 27-foot sailboat with unpaid moorage fees of $2,378 and a 45-foot commercial fishing vessel with unpaid moorage fees of $3,399. (5201/Consent Agenda C) Approved 3-0

62. Authorize the executive director to sign an agreement with Rugby Aviation d/b/a San Juan Airlines for the collection of passenger facility charges at Bellingham airport? In 2014, Rugby Aviation purchased certain assets from West Isle Air including the San Juan Airlines name. The port asserted that Rugby was required to collect passenger facility charges under the terms of the lease. Rugby asserted that it believed that no requirement existed and that it had not been notified to do so by the port. A compromise was reached with the following terms: Rugby will begin collecting passenger facility charges effective 4/1/2015; Rugby will not protest the alleged lack of notification further and will release all claims it could have brought against the port associated with passenger facility charges; Rugby will pay a settlement fee of $3,000 to the port. The collection estimate for this year is $15,000. (5196/Action Item 1) Approved 3-0

63. Authorize the executive director to sign a deeds of conveyance to the city of Bellingham for two main improvement projects? The city of Bellingham will accept the ownership, operation and maintenance of the West Bakerview sewer main and the Fairhaven Marine Industrial Park water main. A proposed hotel on Mitchell Way and expansion of the commercial air terminal, including impacts of discharge of deicing fluids, has caused the city of Bellingham register concern over sewer loading additions to city’s pump stations. The port determined that replacing the original four-inch force main was the most cost-effective solution. The facilities, valued at a construction cost of $110,487, consist of 864 feet of eight inch sanitary sewer force main. The second project included replacement of most of the internal water main and fire main system at Fairhaven Marine Industrial Park. Construction cost was $50,299. The bulk of the improvements remain in the section retained by the port. (5197/Action Item 2) Approved 3-0

64. Authorize the executive director to sign a $147,000 contract with Moffatt & Nichol of Long Beach, California, for survey, engineering, design and construction support services for the Bellingham Shipping Terminal and former GP pier? The scope of work: the current condition, structural inspection and evaluation of pilings, pier support structure and decking for portions of the terminal and pier and a post event inspection of the area damaged as a result of the Horizon Fairbanks breaking free of its moorage on 12/9/2014. These reports will be used to scope upcoming repairs. A contingency fee of $14,700 brings the total authorized amount to $161,700. (5198/Action Item 3) Approved 3-0