Compiled by Bill McCallum

Action Taken at December 10, 2019 Meeting

Shall the commission:
148. Set commission meetings dates for 2020? Meetings will be held on the first and third Tuesday of the month with a starting time of 4:00 p.m. Exceptions: the second meeting in January will be held on Wednesday, January 22, and one meeting will be held on the second Tuesday in July, August and December 2020. (9009/Action Item 1) Approved 3-0

149. Appoint officers for 2020? Michael Shepard is president; Bobby Briscoe is vice president and Ken Bell is secretary. See the endnote for board representatives. (9010/Action Item 2) Approved 3-0

150. Modify a lease with Bellingham HI, LLC? The southwest parking area with approximately 30,821 square feet will be removed from the lease. The area will be used for the Bellingham airport’s quick turnaround facility for rental car agencies. The square foot rate will be reduced from $12 to $10. Rent for this transaction will be reduced by $1,797,103 over 11 years, excluding the additional 2 percent gross revenue concession fee over the minimum base rent. (9011/Action Item 3) Approved 3-0

151. Approve a lease with Fairhaven Workstudios LLC (amendment #4) for property north of the Fairhaven Marine Industrial Park? At the 12/6/2016 meeting, vote #205, the commission approved a lease for 1.5 acres of undeveloped property for office and live/work studios, subject to city of Bellingham approval. The lease was amended at the 2/6/2018 meeting, vote #25, and 5/7/2019 meeting, vote #60. The monthly payment will be reduced from $2,000 to $500. This amendment expires on 6/30/2020. (9012/Action Item 4) Approved 3-0

152. Authorize the executive director to accept a $1,168,782 loan/grant from the state of Washington for construction of segment one of the rural broadband project? The grant of $584,391 and the loan of the same amount are from the Community Economic Revitalization Board. The loan with a 1.5 percent interest rate will be repaid over the next 10 years. The first phase of the construction starts at Bellingham and goes through Nugent’s Corner, Deming, Kendall, Maple Falls and ends at Glacier. The total length is 40.6 miles. The estimated cost of the project is $2,125,000. (9014/Action Item 6) Approved 3-0

153. Authorize the executive director to sign a master development agreement (amendment 4) with Harcourt Bellingham? At the 3/31/2015 meeting, vote #54, the commission authorized the executive director to sign a master development agreement with Harcourt Bellingham (headquarters Dublin, Ireland) for 18.8 acres within the Waterfront District. The Bay Street Connector is an integral part of the revised Waterfront District layout. It will provide vehicle, bicycle and pedestrian connections from downtown while also serving as a parking garage. In the event that Harcourt and the city are unable to reach a reasonable agreement on the design, construction and operation of the Bay Street Connector, the adjacent parcel will be removed from the master development agreement and offered to other potential development partners. (9016/Action Item 8) Approved 3-0

154. Adopt rules, regulations and rates handbook for Blaine Harbor, Squalicum Harbor and Bellingham Cruise Terminal? The handbook (Resolution 1354) was approved at the 10/4/2016 meeting, vote #168. This update makes rates/fees and housekeeping changes. 9017/Action Item 9 (Resolution 1354-D) Approved 3-0

155. Reaffirm Chmelik, Sitkin, & Davis as the port’s legal counsel for 2020? The firm’s hourly rate will remain $275.000 for principals, and actual billing rates for associates and paralegals. (9019/Consent Agenda B) Approved 3-0

156. Appoint Tamara Sobjack (director of finance) as auditor and Valerie Schorr, (accounting supervisor) as deputy auditor for fiscal year 2020? This position reviews and certifies all payments, maintains control over all designated cash funds not invested and in compliance with state law and port policies.. (9020/Consent Agenda C) Approved 3-0

157. Adopt rental revenue standards for 2020? There is a slight increase in average lease rates for class “A” office rates and class “A” and “B” retail rates. All other categories have a slight decrease or minimal changes. (9021/Consent Agenda D) Approved 3-0

158. 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 1/31/2020. 9022/Consent Agenda E (Resolution 1183-Q) Approved 3-0

159. Authorize the executive director to spend $41,262 for water damage repairs at the Bellingham airport? Two water line failures occurred in the terminal building on February 5/6, 2019. Freezing temperatures resulted in the freezing and breaking of a primary fire suppression system and a hose bib supply line. Flooding occurred inside the terminal from the ticketing counters to the security screening area, and also in several offices as well as in the basement, including the port’s records archive room and tenant office spaces. At the 2/19/2019 meeting, vote #30, the commission authorized $334,457 for cleanup; at the 4/9/2019 meeting, vote #43 the commission authorized another $90,000. This vote brings the total authorized amount to $456,262. The port has a $50,000 insurance deductible. (9023/Consent Agenda F) Approved 3-0

160. Authorize the executive director to sign a revised transfer of lease from South Pacific Seafood to the Tulalip Tribal Federal Corporation for premises at the Blaine Marine Industrial Area? At the 11/19/2019 meeting, vote #141, the commission authorized the transfer to the Tulalip Tribes of Washington. Subsequently, the port was contacted by the Tulalip Tribes of Washington and requsted the purchasing corporation be changed to Tulalip Tribal Federal Corporation. (9025/Consent Agenda H) Approved 3-0

161. Increase rental rates for the Bellingham Cruise Terminal on Fridays and eliminate “Off-Season” rates for the Squalicum Boathouse? The Friday rates at the cruise terminal are increasing $400 in the peak season and $300 in the off-season. The Squalicum Boathouse is located at Zuanish Point Park.(9027/Consent Agenda J) Approved 2-0, Bobby Briscoe opposed.

162. Authorize the executive director to sign a four-year agreement for emergency response services with Whatcom County’s Fire Protection District #8? Under this agreement, the fire district will provide fire protection, emergency medical services, and crash fire rescue support at the Bellingham airport. Annual cost to the port will increase from $159,664 in 2020 to $171,941 in 2023. This agreement runs from 1/1/2020 to 12/31/2023. (9028/Consent Agenda K) Approved 3-0

163. Authorize the executive director to approve a $55,970 payment to the state of Washington for aquatic lands harbor leases adjacent to the Whatcom Waterway? The state issued two leases to Georgia-Pacific for the treatment lagoon known as the Aerated Stabilization Basin. The leases are for a pipeline under Whatcom Creek to the treatment lagoon for stormwater treatment and the outfall pipe from the treatment lagoon into Bellingham Bay. The treatment lagoon is part of the Whatcom Waterway cleanup site. Since 6/30/2008, the port has been using the treatment lagoon and pipeline system to manage stormwater and industrial process water. The payment period runs from 12/1/2019 through 11/30/2020. (9032/Consent Agenda M) Approved 3-0

164. Increase the base salary for the executive director by 3.0 percent? A 3.0 percent raise brings the base salary to $182,637. At the 2/19/2019 meeting, vote #19, the executive director’s base salary was raised by 3.0 percent to $177,317. (9034/Consent Agenda O) Approved 3-0 165. Authorize the executive director to increase a contract with S.E.A. Construction of Raymond, Wash., by $59,563 for storm damage repairs? A March 2016 storm damaged sections of shoreline from Marine Park to Squalicum Creek. The repairs consist of removal of existing bank armoring, placement of filter rock and new and reused armor rock to reconstruct the banks in the various locations. More concrete debris has been discovered buried beneath existing armor rock than was anticipated. At the 7/9/2019 meeting, vote #88, the commission approved a $595,627 contract and contingency fee. This increase brings the total contract to $655,190. (9035/Consent Agenda P) Approved 3-0

166. Approve the 2020 budget for the Industrial Development Corporation? Anticipated revenues: $6,125; anticipated expenditures: $300. This motion authorizes the IDC treasurer to approve distribution and payment of IDC funds in conjunction with the budget. (9037/IDC4) Approved 3-0

167. Appoint Industrial Development Corporation officers and establish the date, time and location of meetings for 2020? (Commission meeting as the Industrial Development Corporation.) President: Michael Shepard; vice president: Bobby Briscoe; secretary: Ken Bell and treasurer: Tamara Sobjack. IDC meetings will be convened as needed, in conjunction with commission meetings. (9038/IDC1-3) Approved 3-0

168. Approve the Waterfront District master plan and amend the Comprehensive Scheme of Harbor Improvements? At the 12/3/2013 meeting, vote #176, the commission approved the Waterfront District Master Plan as defined in the 2005 interlocal agreement. At the 12/3/2013 meeting, vote #177, it approved the Squalicum Harbor comprehensive scheme of harbor improvement. Over the next 25-50 years, implementation of the 2019 Waterfront District master plan documents will allow the port property to be sold or leased for development and allow these properties to be developed to support jobs, housing and public facilities within the Waterfront District. 9041/Action Item 7 (Resolution 1391) Approved 3-0

169. Authorize the executive director to sign a $30,000 contract with Jewell James (House of Tears Carvers) for artwork (Double Thunderbird) to be located at the Bellwether on the Bay? The three-piece arch of western red cedar logs is to be eight to 10 feet in height and eight to 10 feet wide and to be delivered by 4/30/2020. A down payment of $10,000 is due with the signing of the contract. The final payment of $20,000 is due upon receipt of the native artwork. (9043/Consent Agenda I) Approved 3-0

Endnote
Whatcom Council of Governments:
Bobby Briscoe (primary), Michael Shepard (secondary)

Washington Public Ports Association: Michael Shepard (trustee), Ken Bell (alternate)

Whatcom County Economic Development Investment Program: Ken Bell (primary), Bobby Briscoe (secondary)

Western Crossing: Ken Bell (primary), Michael Shepard (secondary)