Compiled by Andrew S. McBride

Action Taken at February 2, 2016 Meeting

Shall the commission:
31. Renew a rental agreement with the state of Washington? The Washington State Department of Fish and Wildlife maintains an office at Harbor Mall, Suite 20, with an area of 839 square feet. The department has been a tenant at Squalicum Harbor since 1966. The agreement begins on 2/1/2016 and ends on 1/31/2021. Rent over the five-year period will be $59,299. (5668/Consent Agenda B) Approved 3-0

32. Authorize the executive director to sign a $70,000 contract (amendment #2) with Puget Sound Executive Services of Sequim to provide security at the Bellingham airport on a month-to-month basis through 4/31/2016? The contract was originally approved at the 7/7/2005 meeting, vote #74. The company provides law officers at airport screening checkpoints. The federal government reimburses the port for approximately 45 percent of the total cost with the remaining balance reimbursed by the airlines. This amendment brings the total contract to $575,815. (5669/Consent Agenda C)  Approved 3-0

33. Authorize the executive director to sign a $21,128 contract (amendment #2) with Wilson Engineering of Bellingham to amend the general and specific binding site plans for the Waterfront District? The scope of work under consideration is to perform a second lot line adjustment for the potential sale of the 800 Cornwall Avenue property to Harcourt Development of Dublin, Ireland. This contract encompasses additional survey services needed for the enlarged area to be described in the general binding site plan. This amendment brings the total contract to $66,270. (5670/Consent Agenda D) Approved 3-0

34. Authorize the executive director to sign a $75,447 contract (amendment #9) with AECOM of Los Angeles, CA, to perform engineering, design, and bid support for the modified area 3 in the general aviation apron rehab areas 3 and 4 project at the Bellingham airport? The scope of work under this amendment includes design revisions required by recently updated Federal Aviation Administration standards, extending the area of work to include a portion of GA area 2 (a portion of Taxiway Foxtrot), and the installation of three additional directional signs requested by the Air Traffic Control Tower. This amendment brings the total contract amount to $1,195,947. (5671/Consent Agenda E)  Approved 3-0

35. Authorize the executive director to sign an $3 million loan/grant agreement with Whatcom County for the All American Marine expansion project? At the 1/26/2016 meeting, vote #18, the Whatcom County Council approved an Economic Development Investment Board application from the port for a $1,000,000 grant and $2,000,000 loan toward the construction of a new building to support All American Marine’s expansion. The $1,000,000 will directly offset project costs. The $2,000,000 loan will accrue interest of $216,614 over 20 years. (5672/Consent Agenda F) Approved 3-0

36. Authorize the executive director to sign a $19,000 contract with Kennedy/Jenks Consultants of Federal Way to perform consulting services for the National Pollutant Discharge Elimination System permit? The primary task of this contract is an update to the stormwater pollution prevention plan, a plan that identifies substantive duties, procedures, and methodologies that must be performed by port and tenant staff to ensure compliance with the permit. Additional work includes ongoing stormwater compliance and engineering support at BLI and other port sites. (5673/Consent Agenda G) Approved 3-0

37. Allocate up to $150,000 to demolish Building 1 located at the Blaine Marine Industrial Area? On 5/31/2015, Blaine Marina terminated its lease (see the 7/21/2015 meeting, vote #95). The lease contained a provision for Blaine Marina Inc. to remove all tenant improvements prior to lease termination. If the improvements were not removed, the port had the option to assume ownership of those improvements or remove and dispose of the improvements with cost of removal charged to Blaine Marina. Building 1was not removed; the port has declined to assume ownership. Costs to demolish the building, including engineering, permitting, bidding, and demolition work are estimated not to exceed $150,000. Following demolition, the port intends to request reimbursement from Blaine Marina Inc. (5674/Action Item 3) Approved 3-0

38. Authorize the executive director to apply with the Washington State Department of Natural Resources for relocation of state harbor areas in Bellingham Bay? At the 12/6/2005 meeting, vote #129, the commission approved a state harbor lines memorandum of understanding with the state of Washington. The state has requested that a new application for relocation of state harbor areas be submitted which aligns Bellingham Bay harbor areas with current shorelines and navigable waters depths by ensuring consistency with the city of Bellingham’s Shoreline Management Program; avoiding adjustments to the inner harbor line; expanding harbor areas where appropriate for future deep water access; reducing harbor areas where no longer necessary; and anticipating adjustments to port-managed harbor areas. (5675/Action Item 2) Approved 2-1, Bobby Briscoe opposed.

39. Approve amendments to the Bellingham airport’s ground transportation service program? At the 7/7/2015 meeting, vote #86, the commission approved 2015 airport tariff schedule. On 11/12/2015, the city of Bellingham approved Rasier, LLC of Delaware — operating as Uber® — to operate within the city limits. Soon afterwards, Rasier contacted the port seeking approval to serve the airport. Port and Rasier staff began discussions which evolved into negotiations on policy and business requirements. The airport tariff schedule has been updated to include a “per trip fee” of $1.50 per drop off or pick up. It is expected that the “per trip fee” will bring an additional $24,000 to $30,000 in revenue per year to the port. This vote authorizes the executive director to sign a license to operate agreement with Rasier to provide service to the Bellingham airport. (5678/Action Item 1) Approved 2-1, Bobby Briscoe opposed.

Action Taken at February 16, 2016 Meeting

Shall the commission:
40. Renew a lease with First American Title Insurance Company? First American has leased Suite 301 at 11 Bellwether Building since approved at the 11/1/2005 meeting, vote #105. This renewal is for five years beginning 2/1/2016 and includes two consecutive three-year renewal options. Rent for the five-year period will be $730,061. (5697/Consent Agenda C) Approved 3-0

41. Renew a lease with Glenn Hupp, a sole proprietorship d/b/a Harbor Moon Salon & Barber? In May of 2011, the commission approved a lease between Wade and Ginger Coen d/b/a Harbor Moon Salon & Barber and Glenn Hupp for premises located at Harbor Center Building, Suite 170. Only Glenn Hupp is requesting a renewal for a five-year term beginning 12/1/2015 and ending 11/30/2020. Rent over the five-year period will be $54,330. (5698/Consent Agenda D) Approved 3-0

42. Modify a lease with Index Industries? The company manufactures switches, sensors and controls for industrial vehicle, engine and equipment markets and moved to Bellingham from Stanwood. At the 11/16/2010 meeting, vote #159, the commission approved a lease with Index for 10 years and expenditures of $2,500,000 for building improvements located at 300 Harris Avenue. At the 7/3/2012 meeting, vote #118, the commission approved a modification of lease whereby $200,000 in additional improvements were invested by the leasehold at the sole cost and benefit to Index. On 12/17/2015, Index paid off the balance due of $163,391. Leasehold tax of $20,979 was not remitted at the time of payoff. This modification of lease eliminates the repayment requirement and provides for the payment of outstanding leasehold tax over a period of 12 months in a total amount of $20,979. (5699/Consent Agenda E) Approved 3-0

43. Approve a supplemental lease agreement with the United States Coast Guard? At the 7/19/2005 meeting, vote #79, the commission approved a lease with the USCG for premises located at the Fairhaven Terminal (Warehouse 4 and the Stub Pier). The lease provided for nine one-year renewal options through 9/30/2015. This supplemental lease agreement renews the lease for two one-year renewal periods: retroactively from 10/1/2015 through 9/30/2016, and then from 10/1/2016 through 9/30/2017. Combined rent and moorage costs for the 2015/2016 renewal period is $54,555. For the 2016/2017 renewal period these costs will be $56,706. (5700/Consent Agenda F) Approved 3-0

44. Authorize the executive director to sign an agreement (modification 2016-1) with the city of Bellingham to revise alignment of Granary Avenue and Laurel Street within the Waterfront District? At the 12/3/2013 meeting, vote #176, the commission adopted the Waterfront District Sub-Area Plan and associated regulations and agreements, including facilities. This amendment details port and city obligations for the phasing in of facilities within the Waterfront District including Model Toxics Control Act cleanup, construction of arterial roads, utilities and parks. At the 3/31/2015 commission meeting, vote #53, the port and Harcourt Development of Dublin, Ireland, entered into a master development agreement providing Harcourt the exclusive right to develop 18.8 acres within the Waterfront District. The modification includes the extension of Granary Avenue to the current Laurel Street alignment and out to Cornwall Avenue. Modification 2016-1 recognizes these changes and removes the city’s obligations to construct Bloedel Avenue and portions of the Commercial Loop. There is no fiscal impact to the port associated with the modification. (5695/Action Item 1) Approved 3-0

45. Authorize the executive director to spend $28,000 for the purchase and installation of a horizontal story pole from the Lummi Nation for display at the Bellingham airport? The horizontal story pole project was initiated by Nooksack Salmon Enhancement Association, which paid an initial $50,000 to a Lummi Nation carver. The executive director’s spending authority without commission approval is capped at $25,000. Sales tax on the $23,000 purchase brings the total to over $25,000. (Action Item 2) Approved 3-0

46. Increase by $41,000 the contract (amendment #1) with Strider Construction of Bellingham for the Bunker C soil removal project?A port consultant, Aspect Consulting of Bellingham, made a tabulation error in the amount of contaminated soils (4,800 tons rather than 3,000 tons) removed by Strider from the Bunker C site on the former Georgia-Pacific property, resulting in an additional $41,000 due. The port must pay for material overages. Aspect has agreed to issue a $30,000 credit to the port for its tabulation error. Port counsel states that the material overage is not a legal problem; this clean-up action is governed by consent decree and contaminated soils must be removed. This $41,000 brings the total contract to $845,000. (Action Item 3) Approved 3-0

47. Change the petty cash custodian at Squalicum Harbor? Kyle Randolph is appointed the new funds custodian at Squalicum Harbor. The total petty cash and change fund for all locations is $3,950. 5696/Consent Agenda B (Resolution 1350) Approved 3-0