Action Taken at June 6, 2017 Meeting

Shall the commission:
70. Authorize the executive director to accept a $782 state grant for costs associated with maintaining readiness for the oil spill response trailers at Blaine Harbor and the Bellingham Cruise Terminal? In 2006, the port received two oil spill response trailers from the state. One trailer is located at Blaine Harbor, and the other at the Cruise Terminal. The state will provide one-time funding to conduct inspections and repairs to ensure the trailers are ready for response work. Port staff determined that trailer tires should be replaced. (6845/Consent Agenda B) Approved 3-0

71. Authorize the executive director to accept a $10,000 grant from the Port of Seattle, and sign amendment #1 to the Bellingham Whatcom County Tourism Master Agreement? The Port of Seattle has awarded a $10,000 grant to the port for marketing tourism activities intended to generate additional airline passengers from SeaTac to Bellingham airport. Port staff has identified the Great American Beer Festival in Denver as an appropriate venue to promote Bellingham and Whatcom County as a destination for beer enthusiasts. The amendment to the Bellingham Whatcom County Tourism Master Agreement will increase the budget by $11,500 and include tasks related to beer-related tourism in the scope of work. The port will contribute $1,500 from its Economic Development account. (6846/Consent Agenda C) Approved 3-0

72. Authorize the executive director to apply for and receive a grant from Puget Sound Energy of Bellevue to upgrade lighting in buildings 4 and 5 at Fairhaven Marine Industrial Park? Staff estimates that it will cost $10,228 to upgrade the lighting in these two buildings. The incentive amount returned in the form of a grant is $7,362, or 72 percent of material costs. Upgraded lighting will reduce energy usage by an estimated 55 percent. Installation of new lighting will be performed by the port’s maintenance staff. (6848/Consent Agenda E) Approved 3-0

73. Approve an operating agreement with Swift Air of Phoenix, Arizona for its operations at the Bellingham airport? Swift Air was established in 1997, it has a fleet of thirteen Boeing 737 aircraft available for charter and private use. It operates charter flights for professional sports teams and major tour operators. The port will receive aircraft rescue and fire fighting fees, landing fees, and passenger facility charge fees per the airport tariff schedule. The agreement is retroactive to 5/1/2017 and will continue on a year to year basis. (6849/Consent Agenda F) Approved 3-0

74. Approve a lease renewal with Brown’s Airport Restaurant d/b/a Scotty Browns? At the 7/19/2011 meeting, vote #108, the commission approved a lease with Scotty Browns restaurant for a five-year term beginning 5/1/2012 for non-exclusive food and beverage services at Bellingham airport. At the 3/19/2013 meeting, vote #54, the amount of space was increased from 1,400 square feet to 2,502 square feet. This renewal and modification of lease renews the lease for a five-year term from 5/1/2017 to 4/30/2022. Over five years, nominal rent for office and storage space will be $58,531; base rent at 5.5 percent of gross sales is estimated to be $500,000. (6850/Consent Agenda G) Approved 3-0

75. Approve lease modifications with rental car agencies operating at the Bellingham airport? The motion concerns separate lease modifications with Avis Rent a Car System; Budget Rent a Car System; EAN Holdings (Enterprise) and The Hertz Corporation. At the 2/21/2017 meeting, vote #25, the agreements were modified to relocate the rental car pickup to the southern portion of the terminal lot by 3/1/2017. Relocation did not occur. Monthly per stall rate will increase from $10.00 to $11.00. Based on seven months remaining on the terms of these lease and concession agreements, and an estimated relocation date of 6/1/2017, nominal rent is estimated to be $39,998. Of this amount, the firms are expected to pay as follows: Avis $7,620; Budget $5,828; EAN $16,468; and Hertz $10,084. (6851/Consent Agenda H) Approved 3-0

76. Approve a lease modification with Paws for a Beer in Fairhaven? At the 8/16/2016 meeting, vote #146 approved a new lease with Paws for a Beer. It offers off-leash space for dog owners interested in imbibing beer and wine while exercising their dogs. This lease modification changes the initial term from one to two years, adds a one year renewal option, and extends the Americans With Disabilities Act-compliant restroom installation requirement from six months to one year from the lease start date of 8/15/2016. Nominal rent to the port for the initial term will be $43,786; one month free rent is included. (6852/Consent Agenda I) Approved 3-0

77. Authorize the executive director to award the only responsible bid of $495,129 to Cadence Construction of Seattle for the Bellingham Shipping Terminal re-roofing project? Four bids were received, three bids were ruled non-responsive. After consultation with the contractor conducting repairs on the Warehouse 1 roof, port staff decided that the entire roof of Warehouse 2 should be replaced with a thermoplastic polyolefin membrane. It is now an industry standard, and will ensure that the roof is watertight and under warranty to protect a tenant’s commodities. Expected completion date is 8/7/2017. A contingency fee of $49,871 brings the total authorized contract to $545,000. (6853/Action Item 1) Approved 3-0

78.Authorize the executive director to sign a memorandum of agreement with Alpha Distributors of Bellingham and enter into lease negotiations for development of the former Washington Air National Guard site at Bellingham airport? In July 2016, the port issued a request for proposals for a land development lease at the 8.16 acre site. The long-term lease will be structured with the successful proposal provider having responsibility for demolition, site preparation, marketing, design, permitting, construction, operation and maintenance of corporate, business and government aircraft storage and maintenance hangars. The proposal from Alpha was deemed to be sufficiently responsive for discussions to commence on an memorandum of agreement for lease negotiations. Discussions with Alpha commenced in late September 2016 and ended in May 2017 with agreement on the memorandum of agreement. This agreement will serve only as the basis for lease negotiations between the port and Alpha. (6854/Action Item 2) Approved 3-0

79. Authorize the executive director to sign a $749,491 contract with American Construction of Tacoma for phase 2 repairs to Blaine Harbor marine structures? Phase 2 consists of repair work on three existing piers at Blaine Harbor: the North, South, and Sawtooth Piers. Scope of work includes replacement of timber piles, decking, framing beneath existing cranes, bull rails, stringers, and existing electrical cable and conduit. Two sewage pump out floats will be constructed near Gates 1 and 2 of the marina. Rehabilitation of existing piers will keep these facilities in service to support fishing and marine trades. Expected completion date is 11/30/2017. A contingency fee of $149,898 brings the total contract to $899,389. (6856/Action Item 4) Approved 3-0

80. Authorize the executive director to sign various documents related to the Waterfront District general binding site plan? Three right-of-way deeds are for the Roeder Avenue/Chestnut Connector, Granary Avenue, and Laurel Street. Two slope easements are for Granary/Laurel and an area adjacent to the Boardmill Building. Four utility easements are for utility farm access, a sewer pump station, a stormwater facility, and a water main. One plat establishing the site plan boundary These transactions are consistent with the interlocal agreement for facilities entered into by the port and the city of Bellingham. (6857/Action Item 3) Approved 3-0

Action Taken at June 20, 2017 meeting

Editor’s Note: Commissioner Bobby Briscoe participated via a communications link from his fishing boat in Alaskan waters.

Shall the commission:
81. Approve a lease with The Puget Hound, LLC of Bellingham for property located at 3710 Williamson Way? The airport property was previously leased to the Whatcom Humane Society; its lease was terminated in 2013, the property (25,000 square feet) and building (3,768 square feet) are falling into disrepair. The port had budgeted $143,000 to demolish the building. Puget Hound representatives contacted port staff in 2016 about a lease or purchase. The proposed two-year lease includes renewal options and an option to purchase the building within the first two years. Purchase price would be $53,239 (2016 appraised value of $115,000, less the cost of $61,761 to make the building usable as a pet boarding facility). Including a two-month rent abatement, the port will receive $30,977 in rent over two years. (6877/Action Item 2) Approved 3-0

82. Modifiy a harbor land lease and project development agreement with All American Marine for its manufacturing facility? At the 4/5/2016 meeting, vote #65, the commission approved a harbor land lease and project development agreement with AAM for a new manufacturing facility on Hilton Avenue. The project budget was $10.37 million for the 40,000 squre foot building to be completed by 12/31/2016. At the 12/16/2016 meeting, vote #212, the lease was modified and term amended to begin 2/1/2017 with a two-month no rent period. Port staff recommends changing the lease term with full occupancy on 4/18/2017, no rent due for April and May. The modification updates the insurance provision to include the launch route, tenants who may lease portions of the launch route and Squalicum boat launch, and provides for mutual inspection of the route prior to a launch. (6878/Action Item 3) Approved 3-0

83. Authorize the executive director to sign a $385,327 contract (amendment #47) with Anchor QEA of Seattle for consulting support at the Whatcom Waterway phase 1 cleanup project? At the 1/8/2008 meeting, vote #17, the commission voted to retained Anchor Environmental (now Anchor QEA) to perform site inspections, site surveys and mapping, review of existing information and data management, marina design and planning. Whatcom Waterway cleanup project fall under the Model Toxics Control Act and a consent decree with the Department of Ecology. Scope of work includes ongoing project management, support for the port’s wastewater discharge permit for port waterfront properties, and year one compliance monitoring and reporting. An existing MTCA remedial action grant will reimburse 50 percent of eligible costs with the remaining 50 percent reimbursed by the port’s AIG Insurance package. The amendment will bring the total authorized contract amount to $12,846,409. (6881/Consent Agenda B) Approved 3-0

84. Authorize the executive director to sign a $45,000 contract (amendment #10) with Landau Associates of Edmonds for consulting work at the Westman Marine cleanup site in Blaine? Westman Marine operated a vessel maintenance and repair facility at the site from the 1950s to 2011. The site is currently being operated as a boatyard by Walsh Marine. Due to historic contamination, the site requires remediation under the Model Toxics Control Act. At the 10/4/2011 meeting, vote #149, the commission approved the original contract to perform a remedial investigation/feasibility study under an agreed order with Department of Ecology. The site-wide RI/FS has been completed. Scope of work includes finalization of the feasibility study, preparation of a draft cleanup action plan, and negotiation of an amendment to the agreed order with Ecology for final design and permitting. An existing MTCA remedial action grant will reimburse 50 percent of eligible costs; under a cost share agreement, the Westman Estate will fund 33.3 percent of cleanup costs. This amendment brings the total authorized contract amount to $853,700. (6882/Consent Agenda C) Approved 3-0

85. Authorize the executive director to sign a settlement agreement and release with Manitoba Ltd. to reimburse the port for expenses incurred in repairing damage from a aircraft crash? On 2/27/2017, it was snowing when a single-engine private aircraft based in Winnipeg, Manitoba, crashed after taking off from Bellingham airport. The pilot sustained minor injuries and there was property damage to airport grounds and facilities and the spilling of approximately 280 gallons of aviation fuel. The port spent $52,371 to repair damage; the amount will be recovered in full with the signing of the settlement agreement. (6884/Consent Agenda E) Approved 3-0

86. Authorize the executive director to sign a $86,477 contract (amendment #5) with Reid Middleton of Everett for construction administration services for phase 2 of the Blaine Harbor marine structures repairs project? At the 9/15/2015 meeting, vote #125, the commission approved the original contract for $109,898. The project includes construction of two new sewage pumpout floats, replacement of deteriorated utility hangars, and rehabilitation of three pier structures (north, south, and sawtooth piers). Phase 2 includes completion of construction administration services of the project with expected completion date of 11/30/2017. This amendment brings the total authorized contract amount to $568,770. (6885/Consent Agenda F) Approved 3-0

87. Authorize the executive director to sign a $55,922 purchase order with Puget Sound Energy of Bellevue for installation of conduits and vaults for future undergrounding of power as part of the Waterfront District redevelopment project? Removal of overhead power lines, increase of power capacity, and installation of several hundred feet of conduits with appropriate vaults will lead to full utilization in anticipated future use of the Bellingham Shipping Terminal. (6888/Consent Agenda G) Approved 3-0