Compiled by Andrew S. McBride

Action Taken at October 4, 2016 Meeting

Shall the commission:
163. Authorize the executive director to renew the port’s liability and auto insurance coverage? The premium will be $183,426 (for the period 10/1/2016 through 9/30/2017) and the broker is Alliant Insurance Services of Newport Beach, Calif. There are significant increases in premiums for auto liability and excess liability; premiums for other policies remained nearly the same. For 10/1/2015 through 9/30/2016 premiums were $161,592; total premiums are 13.5 percent higher this year due to results of the Alaska Maritime Highway System passenger ramp injury lawsuit (currently under appeal) and changes in the auto insurance market. (6305/Consent Agenda B) Approved 3-0

164. Authorize the executive director to accept $7 million in state grants for the Harris Avenue shipyard and the GP West site? The port is eligible for remedial action grants under the Model Toxics Control Act. The Harris Avenue grant is for $6 million; it will fund upland excavation and offsite disposal of contaminated soil, in-water dredging and offsite disposal of contaminated sediments, permanent removal of the Carpenter Building and creosote-treated pier to access contaminated sediments, and replacement of the pier. The GP West site (Waterfront District) grant is for $1 million; it includes funding for testing to determine optimal mercury stabilization mixture and excavation, stabilization and offsite disposal of about 600 cubic yards of mercury-contaminated soil. The $7 million represents half of the grant-eligible costs of the interim actions. (6306/Consent Agenda C) Approved 3-0

165. Authorize the executive director to award the only bid of $75,950 to Strider Construction of Bellingham for removal of airport obstructions? In December 2015, a Federal Aviation Administration inspector found full-grown trees within the runway and taxiway object-free areas and directed that the trees be removed. A contingency fee of $7,595 brings the total authorized contract to $83,545. (6307/Consent Agenda D) Approved 3-0

166. Authorize the executive director to award the low bid of $251,178 to Strider Construction of Bellingham for the Blaine Harbor dock box replacement project? Existing dock boxes are nearly 15 years old and need to be replaced. The work includes replacing 298 dock boxes near Gate 1 and 42 dock boxes near Gate 2. The new dock boxes will be more durable and will feature clear windows for ease in reading electric meters. The port received four bids; the high bid was $452,311. A $25,117 contingency fee brings the total authorized contract to $276,295. (6308/Consent Agenda E) Approved 3-0

167. Authorize the executive director to sign a $70,134 contract (amendment #1) with Anchor QEA of Seattle for 2016 storm damage repairs? Port-owned shoreline from Marine Park to Squalicum Creek was damaged during winds-storms on March 10 and 13, 2016. At the 5/17/2016 meeting, vote #92, Anchor was awarded a contract to assess the damage and prepare preliminary design for repair work. The work under this amendment includes final design, preparation of contract documents and bid support services. This amendment brings the total authorized contract to $164,134. (6309/Consent Agenda F) Approved 3-0

168. Create a harbor operations, policies and rates handbook for Blaine Harbor, Squalicum Harbor and the Bellingham Cruise Terminal? This vote rescinds Resolution 1226-M and Moorage Tariff No. 1. Blaine and Squalicum harbors are governed by two documents, and the cruise terminal doesn’t have published rules and regulations. Creating one document is more efficient and effective. Resolution 1354 (6310/Consent Agenda G) Approved 3-0

169. Renew a lease with Coffee Junction? The lease was initially signed in 1995 with Fairhaven Coffee and News for premises at Fairhaven Station. It was renewed in 1998 with Fairhaven Coffee and Tea and in 2012 with Coffee Junction. Rent for the five-year lease from 9/1/2016 through 8/31/21 will be $37,990. (6312/Consent Agenda I) Approved 3-0

170. Authorize the executive director to sign a six-month extension and modification of a harbor land lease with Redden Marine Supply and LFS Inc? Since 11/8/1983, the building at 1411 Roeder Ave. has been owned by Harbor Enterprises and subleased to Redden. Recently, Redden suffered financial losses and was placed in receivership. Court-approved sale of Redden’s assets to LFS closed 9/1/2016. Port staff over the next six months will negotiate a new five-year lease with Harbor Enterprises and LFS. Nominal rent for the six-month extension will be $29,820. (6315/Consent Agenda J) Approved 3-0

171. Modify a lease with Bellingham HI LLC? At the 6/4/2013 meeting, vote #94, the commission approved a lease with Bellingham HI LLC for the construction and operation of a Holiday Inn at the Bellingham airport. The Holiday Inn would have 150 rooms, underground parking, workout room, meeting space and restaurant to be constructed at the intersection of West Bakerview and Airport Drive at an estimated cost of $19-20 million. The hotel was expected to open by November 2015. The lease has been modified four times; this is the fifth. Bellingham HI is requesting a modification of the airport lease to extend the date of substantial completion of construction from 8/15/2016 approved at the 9/16/2014 meeting, vote #128, to 1/31/2017. (6311/Action Item 1) Approved 3-0

Action Taken at October 18, 2016 Meeting

Shall the commission:
172. Authorize the executive director to spend up to $700,000 to purchase a mobile crane? Purchase of a movable crane will benefit the port, Colony Wharf and other tenants and customers of the C Street terminal. Colony Wharf will be exclusive operator of the crane and will have sole responsibility for its maintenance. Colony Wharf will provide crane services to port tenants and terminal customers at a published, port-approved rate and services to the port at a discounted rate. Rent of the crane will be 3.5 percent rate of return based on the purchase price, plus 1 percent of gross revenue from crane operations and 0.25 percent of gross revenue from boat haul operations. A lease with Colony Wharf to be exclusive operator of the crane will expire in July 2036. (6329/Action Item 1) Approved 2-1, Dan Robbins opposed.

173. Sell a building and two acres on Cornwall Avenue to Pando Innovations (Itek Energy) for $1,700,820? The company currently has 95 full-time employees and plans to hire at least 30 more when the new facility is completed to meet growing demand for commercial and residential applications of solar panels. At the 4/19/2016 meeting, vote #70, the commission approved a memorandum of understanding for the purchase of the building and property. It is for a 48,000 square feet warehouse for $800,000 and sale of two acres of property for $900,820. Should the port choose to offer the north parcel for lease or sale, Pando will have right of first offer to lease or purchase this property. Should the port choose to offer the Banding Yard for lease or sale, Pando will have right of second offer to lease or purchase this property. Should Pando receive an offer from a third party to purchase the property, the port shall have a right of first refusal to re-purchase the Cornwall improvements and two acres. (6330/Action Item 2) Approved 3-0

174. Modify a lease with Bellingham Aviation Services and Command Aviation? Bellingham Aviation and Command Aviation lease premises in the terminal building at Bellingham airport. They offer aircraft maintenance, flight training, aircraft fuel and aircraft rentals. Bellingham Aviation is increasing its space to 2,426 ssquare feet and Command Aviation is increasing its space to 1,690 square feet A new monthly operating expense for the Williamson Way fuel farm has been instituted; each will pay $131 per month. Rent from Bellingham Aviation through 12/31/2023 will be $583,731 and rent for Command Aviation through 11/30/2018 will be $99,609 plus applicable airport tariffs for both. (6331/Consent Agenda A) Approved 3-0

175. Approve a lease agreement with Powell Business Solutions for Suite 146 in the Harbor Center Building? Powell is an accounting and business consulting firm that is relocating from Harris Avenue. The initial two-year term begins 11/1/2016 and ends 10/31/2018. During the initial term, the port will receive $11,160 in rent. Powell has the option to renew the lease for one two-year period. (6332/Consent Agenda B) Approved 3-0