Compiled by Andrew S. McBride

Action Taken at December 15, 2015 Meeting

Shall the commission:
165. Authorize the executive director to sign a $29,348 contract (amendment #1) with Bennett Engineering LLC of Bellingham to monitor the airport woodwaste landfill? It was operated by the Georgia-Pacific Corporation between 1984 and 1992. In 2005, the port assumed responsibility as part of the GP land acquisition. The Whatcom County Health Department issued a permit for the closure of the woodwaste landfill site in 2010; see the 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 Engineering 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 National Pollution Discharge Elimination System. This amendment brings the authorized budget to $70,633. (5560/Consent Agenda B) Approved 3-0

166. Authorize the executive director to sign a $150,000 contract with ChargeItPro of Eagle, Idaho for credit card processing services in Blaine and Squalicum Harbors? In 2014, the marinas purchased a new marina software package called Total Marina Package. Ongoing issues led Total Marina Package to contract with ChargeItPro to improve credit card processing. (5562/Consent Agenda D) Approved 3-0

167. Authorize the executive director to sign an agreement with Western Washington University for economic development services? Over the past five years, Whatcom County, the city of Bellingham and the port have funded the WWU Small Business Development Center. Economic development services include business retention, business expansion, assistance to start-ups, and research to support the above. The total amount is $225,000, which will be allocated as follows: Whatcom County $112,500, city of Bellingham $56,250 and Port of Bellingham $56,250. The agreement terminates on 12/31/2016. (5571/Action Item 1) Approved 3-0

168. Authorize the executive director to sign a $25,000 agreement with the Bellingham-Whatcom County Visitors and Convention Bureau d/b/a Bellingham-Whatcom County Tourism for membership in 2016? The port has an annual membership with Bellingham-Whatcom County Tourism, the lead agency in Whatcom County for tourism development and promotion, and serves as an economic development partner. The membership shall automatically renew annually unless the port provides the tourism office with a written notice of its intent not to renew its annual membership, and the agreement will remain in effect so long as the port is an annual member of the tourism office. (5577/Action Item 2) Approved 3-0

169. Approve the 2016 legislative objectives shared between the port, city of Bellingham, and Whatcom County? At the 1/22/2013 meeting, vote #22, the commission authorized the executive director to sign an agreement with the city of Bellingham and Whatcom County to work cooperatively in developing a shared state legislative agenda and fund McBride Public Affairs of Olympia to perform consultation and government affairs services in support of joint legislative objectives. The contract with McBride Public Affairs is $90,000; the port’s share is $30,000. Some of the 2016 legislative objectives: model toxics control account, aquatic invasive species control, protect local revenue sharing, and rail safety. (5570/Action Item 3) Approved 3-0

170. Approve a new one-year lease with Creaytive, Inc. for Suite 106 located at 11 Bellwether Building? Creaytive, Inc. is a social media management technology company. It anticipates employing 14-full time employees by the end of 2016. The nominal rent for this one-year lease is $17,139. The lease has two one-year renewal options. (5563/Action Item 4) Approved 3-0

171. Approve modification of a harbor land lease with Zephyr Investments for premises located at 2551 Roeder Avenue? At the 9/7/2010 meeting, vote #125, the port annulled the account of Marine Services Northwest (dba Boondocks Boats & Motors). At the 12/5/2011 meeting, vote #170, the lease was transferred from People Bank to Zephyr Investments and in 2012 it was subleased to TD Curran. The nominal rent over the entire five-year renewal period will be $183,948. (5564/ Action Item 5) Approved 3-0

172. Authorize the executive director to sign a $185,396 contract (amendment #41) with Anchor QEA of Seattle for the Whatcom Waterway phase I clean-up project? A contract with Anchor Environment for the Whatcom Waterway cleanup was first signed at the 1/8/2008 meeting, vote #17, and the total amount of the contract was $1,073,661. This amendment is for the structural design of the permanent in-water support and lifting structure and its control system for the barge ramp at the C Street Terminal. The steel deck structure is in the final design stage. This deck will be used on a temporary basis to allow bulk loading/unloading. The existing barge ramp facility was removed as a Department of Ecology requirement to eliminate a pollutant pathway to the Whatcom Waterway. A contingency fee of $14,604 brings this amendment to $200,000 and the total authorized amount to $11,252,282. (5566/Action Item 6) Approved 3-0

173. Authorize an additional $175,000 to the construction contract with American Construction Company of Tacoma for scope of clean-up work added by the state of Washington? The $175,000 addition is based on a request from Department of Ecology to provide additional clean-up excavation and clean backfill activity within the upland area of the former Chevron site. The added work includes excavation of a known heavily-contaminated zone that underlies the shallower excavation being performed as part of the Whatcom Waterway phase I cleanup project. The purpose of doing this work now is to provide project efficiency and cost savings. This change order increases the total contract amount to $31,784,756. (5565/Action Item 7) Approved 3-0

174. Authorize the executive director to sign a $27,000 with Faber Construction of Lynden for emergency repairs performed on a sewer line break in Fairhaven Marine Industrial Park? At the 10/20/2015 meeting, vote #136, the commission authorized a $21,779 contract for emergency repairs; the repairs cost approximately 15 percent more than was estimated. Port staff is in negotiations with Puget Sound Energy to recover costs associated with the portion of the line the firm broke. The port will be paid approximately $4,000 by PSE. Additional costs bring the total to $32,899. (5567/Action Item 8) Approved 3-0

175. Authorize the executive director to sign a $277,701 contract (amendment #4) with Carletti Architects of Mount Vernon for final design of the All American Marine manufacturing facility? This amendment completes all aspects of the design and includes preparation of bidding documents and assistance through the bidding process. This amendment brings the total contract to $606,429. (5568/Action Item 9) Approved 3-0

176. Authorize the executive director to award the lowest responsible bid of $82,611 to Hillco Contracting of Bellingham for the 2015 HVAC replacement project? Work includes replacement of three 30-year-old HVAC units serving Nikki’s Bella Marina Restaurant in Squalicum Harbor. The works was advertised and three bids were received. Blythe Plumbing was the low bidder at $72,231; the bid was rejected as incomplete because of the failure to include a performance bond. A contingency fee of $8,389 brings the total contract to $91,000. (5569/Action Item 10) Approved 3-0

Action Taken at January 5, 2016 Meeting

Shall the commission:
1. Authorize the executive director to sign a $54,405 contract (amendment #5) with Air-Transport IT Services of Orlando, Florida, for use of the multiple airline user passenger processing system? The system allows airlines to use any ticket agent and/or boarding gate without having to assign a gate to any single airline. This amendment brings the total contract to $770,681. (5616/Consent Agenda I) Approved 3-0

2, Authorize the executive director to extend the parking management agreement with SP Plus Corporation (formerly Standard Parking Corporation) of Chicago, Illinois, from 4/1/2016 to 6/30/2016? The port will also purchase three shuttle buses at a cost $32,000. This short-term extension of the management agreement will allow the parking agreement and shuttle lease to expire at the same time. The port will issue a request for proposals for the parking management contract in April 2016. Extending the management contract two months is estimated to cost $244,400 based on a percentage of parking revenue. (5617/Consent Agenda J) Approved 3-0

3. Reaffirm Chmelik, Sitkin, & Davis as the port’s general legal counsel for 2015? The firm’s hourly rate will remain at the capped rate of $250.00, effective 1/1/2016, for principals, and actual billing rates for associates and paralegals. (5619/Consent Agenda C) Approved 3-0

4. Appoint Tamara Sobjack (director of finance) as auditor and Valerie Schorr, (senior accountant) as deputy auditor for fiscal year 2016? As part of the necessary check and balance system ensuring accountability of port funds, the state legislature has established an auditing process to monitor expenditures. (5620/Consent Agenda D) Approved 3-0

5. Adopt rental revenue standards for 2016? (5623/Action Item 5) Approved 3-0

6. Approve nominations for commissioners to serve on organizations and committee? See footnote (1) for details. (5625/Action Item 3) Approved 3-0

7. Change the Port of Bellingham Commission meeting time from 3 p.m. to 4 p.m.? The meetings will continue to be held in the Harbor Center Conference Room on the first and third Tuesdays of each month except August when one meeting will be held. Commissioner Michael McAuley proposed changing meeting times to 4 p.m. beginning in March. Commissioner Dan Robbins proposed keeping meeting times at 3 p.m. (5628/Action Item 2) Approved 2-1, Dan Robbins opposed.

8. Authorize the port’s legal counsel to sign contracts up to a total of $165,948 with Anchor QEA and other consultants to provide technical expertise in support of legal work related to the environmental department? Since 1996, legal counsel, in conjunction with the port’s environmental department, manages the claims process with AIG for the port’s cost cap insurance policy, cost recovery efforts involving former tenants and historical insurance, grant funding programs, and negotiations with the state of Washington concerning agreed orders and consent decrees for the port’s twenty (20) state-listed MTCA sites. Anchor QEA has provided the bulk of technical-legal support for these legal efforts.(5629/Consent Agenda H) Approved 3-0

9. Appoint Industrial Development Corporation officers and establish the date, time and location of meetings for 2016? (Commission meeting as the Industrial Development Corporation.) Executive Director Rob Fix informed commission members that IDC officers mirror the commission officers with the addition of Tamara Sobjack as treasurer. IDC meetings will be convened as needed, in conjunction with commission meetings. (5631/IDC Agenda Item 1/2) Approved 3-0

10. 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. 5618/Consent Agenda B (Resolution 1029-U) Approved 3-0

11. Extend the delegation of certain administrative powers and duties to the executive director? The powers will run from 2/1/2016 to 1/31/2017. 5624/Action Item 4 (Resolution 1106-R) Approved 3-0

12. 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 1/31/2017. 5621/Consent Agenda F (Resolution 1183-M) Approved 3-0

13. Eliminate the surety bonds currently required for the port treasurer and deputy treasurer(s)? Alliant Insurance, the port’s insurance broker, has recommended that due to a higher limit on the port’s crime policy, the surety bonds represent redundant coverage and can be eliminated, saving $400.00 annually in surety bond premiums.(5622/Consent Agenda F) (Resolution 1253-A) Approved 3-0

Action Taken at January 19, 2016 Meeting

Shall the commission:
14. Authorize the executive director to sign an agreement for the reciprocal use of facilities with the city of Bellingham? The new agreement allows each agency 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 and lightcatcher building, Bloedel Donovan and Fairhaven Park indoor facilities, Maritime Heritage Park, Museum and Bellingham Library facilities.The agreement expires on 12/31/2016. (5646/Consent Agenda B) Approved 3-0

15. Authorize the executive director to sign a contract not to exceed $30,000 with Van Ness Feldman of Washington, D.C./Seattle for continued legal counsel on the waterfront district redevelopment project? Van Ness Feldman has provided legal counsel in support of the waterfront district redevelopment project since the port acquired the former Georgia-Pacific mill site in 2005 and has assisted the port and the city of Bellingham to secure federal funding and pass federal legislation in support of this project. (5647/Consent Agenda C) Approved 3-0

16. Authorize the executive director to pay $73,149 to the Whatcom County Auditor’s Office for the port’s share of the 2015 general election costs? The total cost of the general election was $424,543. The port’s share is based on the county-wide voter turnout. (5648/Consent Agenda D) Approved 3-0

17. Approve the renewal of lease with the Bellingham Yacht Club? The Bellingham Yacht Club has been a tenant at Squalicum Harbor since 1962. In 1996, the Yacht Club entered into a lease with the port for an initial five-year term, with the right to renew for seven consecutive five-year periods. Nominal rent to the port over the entire five-year period ending on 2/28/2021 will be $130,726. (5651/Consent Agenda G) Approved 3-0

18. Authorize the sale of one vessel for the nonpayment of moorage fees? An auction is scheduled to be held on 2/12/2016 for a 23-foot sailboat with unpaid moorage fees of $2,760. (5652/Consent Agenda H) Approved 3-0

19. Authorize the executive director to sign a $90,000 contract (amendment #5) with Moffatt & Nichol of Seattle for engineering, design and bid support services for the Bellingham Shipping Terminal and former GP pier? The work for the final phase of maintenance repairs as identified in the 2015 condition assessment. This phase focuses on existing steel piles, concrete pier and bulkhead areas. This amendment brings the total contract amount to $363,003. (5653/Consent Agenda I) Approved 3-0

20. Authorize the executive director to sign a $52,308 contract (amendment #1) with Reid Middleton of Everett for engineering, design, permitting and construction support for repair or replacement of multiple marine structures at the Blaine Harbor? Amendment #1 is for capital maintenance repairs to the North and South Piers. This effort includes design of short-term repairs needed to maintain current use of these structures. This amendment brings the total contract amount to $162,206. (5654/Consent Agenda J) Approved 3-0

21. Authorize the executive director to sign a $73,650 contract (amendment #1) with Reid Middleton of Everett to perform a condition assessment of shoreline, bulkheads, and roadway along a portion of Marine Drive at Blaine Harbor? The work focuses on the Blaine Marine Industrial Area, and includes performing a condition assessment/survey of the shorelines and bulkheads along the peninsula, developing conceptual repair/replacement alternatives including cost estimates. This amendment brings the total contract amount to $149,550. (5655/Consent Agenda K) Approved 3-0

22. Terminate a lease with Advanced Audiology and modify a lease with Movement Mortgage? Advanced Audiology has failed to pay its rent for Suite 108 at the Bayview Center Building. Movement Mortgage, adjacent to Suite 108, is growing and requires additional space. The modification of the lease with Movement Mortgage adds 651 square feet of space (Suite 108) to its leasehold. Advanced Audiology owes $8,299 and is scheduled to pay $1,383 per month with the balance paid in full within six months (July 2016). Nominal rent for the one-year lease renewal with Movement Mortgage is $65,756. (5656/Consent Agenda L) Approved 3-0

23. Increase the base salary for the executive director by 3 percent? The 2015 base salary for the executive director was $158,312. A 3 percent raise brings the base salary to $163,061, effective 1/19/2016. (5657/Action Item 1) Approved 3-0

24. Authorize the meetings and events supervisor to approve refunds up to 25 percent of the room rental fee but not to exceed $750 for dissatisfied customers? Over the past year, there have been a few instances where refunds or discounts were warranted. (5658/Action Item 2) Approved 3-0

25. Terminate a lease and berth agreement with Superior Energy Services of Houston, Texas? Superior Energy has operated out of the Bellingham Shipping Terminal since 2012 (see 2/7/2012 meeting, vote #24), in partnership with Greenberry Industrial of Corvallis, Oregon, and in conjunction with Shell’s Arctic oil and gas exploration off Alaska. In response to Shell’s decision not to do further exploration, Superior Energy has relocated the Arctic Challenger and is downsizing its warehouse operations at the shipping terminal. Superior generated over $1,000,000 in revenue to the port. For consideration of early termination, the company is willing to pay a lump sum of 80 percent of the projected lease ($103,914) and berthing ($321,876) revenue that the port would have received if both agreements had run their course. The buy-out option is $301,872 plus state leasehold tax of $38,760 for a total of $340,632. (5659/Action Item 3) Approved 3-0

26. Authorize the executive director to award two bids — totaling $686,251 — for janitorial services? The low bid for aviation ($396,501) was from American Building Maintenance Janitorial Services of New York. A contingency fee of $20,000 brings the total contract to $416,501. The low bid for facilities ($72,000), Marine Terminals ($98,800), Blaine Marina ($39,950), properties ($79,000), and Squalicum boathouse ($79) was from Management Services Northwest of Ferndale. A contingency fee of $10,000 brings the total contract to $299,779. The contracts are for 34 port facilities; they run from 2/1/2016 through 1/31/2017. The work was advertised and two bids were received. (5660/Action Item 4) Approved 3-0

27. Authorize the executive director to award a low bid of $429,930,000 to Nations Roof NorthWest of Kent for Bellingham Shipping Terminal Warehouse No. 1 re-roof and Warehouse No. 2 roof repairs? Work at Warehouse No. 1 includes repairing rotten sections of the wooden roof structure and installing a new thermoplastic polyolefin roof system over the entire building. Work at Warehouse No. 2 includes patching leaks in the existing roof using a modified bituminous membrane system. The work was advertised and four bids were received. A contingency fee of $64,070 brings the total amount to $494,000. (5661/Action Item 5) Approved 3-0

28. Authorize an additional $3,522,000 of contingency funds for the construction contract with American Construction Company of Tacoma for the Whatcom Waterway phase 1 clean-up project for increased excavation, debris and dredge quantities? The increase is due to sediment deposit from Whatcom Creek that has occurred between the 2008 design bathymetry and the current work period. dredging and in-water transportation will cost $3,064,245 as well as dredge spoils off-loading, upland transport and disposal. An additional $572,602 is for upland excavation of contaminated / unsuitable materials. A reduction of $114,985 is expected for debris removal. The action meets the requirements and qualifications for 50 percent funding by the MTCA grant and 50 percent funding from the AIG pre-funded insurance account. These additional contingency funds bring the total contract amount to $35,306,756. (5662/Action Item 6) Approved 3-0

29. Approve changes to the rules, regulations and procedures for Blaine and Squalicum Harbor? The new requirements are for merchant leaseholders, LLCs and partnerships, upland storage and Blaine boathouse safety rules. 5663/Action Item 7 (Resolution 1226-L) Approved 3-0

30. Establish new moorage and upland storage regulations? This vote grants the port the power and right to sell any vessel which is abandoned or delinquent in moorage tariff charges. 5649/Consent Agenda ? (Resolution 1349) Approved 3-0

_________________________

(1) Whatcom Council of Governments:
Michael McAuley (primary), Bobby Briscoe (alternate).
Washington Public Ports Association:
Dan Robbins (trustee), Michael McAuley (alternate).
Whatcom County Economic Development Investment Program:
Bobby Briscoe (primary), Dan Robbins (secondary).
Western Crossing:
Dan Robbins (primary), Michael McAuley (secondary)