Action Taken at December 17, 2024 Meeting
Shall the commission:
109. Authorize the executive director to implement the port’s air service incentive program? The purpose of the plan is to encourage current or new airlines to schedule additional flights to and from the Bellingham airport. Last August, Southwest Airlines stopped air service to Bellingham putting a big hole in revenue. The shortage of pilots and planes are making it difficult for smaller airports to attract airlines. This plan will waiver all terminal rent, landing fees and remainover night fees for year-round and seasonal commercial service. Total marketing and advertising support will be capped at $480,000. The per flight revenue for the port is $2,340; the program costs will lower it to $1,724. (14351/Action Item #3) Approved 3-0
110. Authorize the executive director to sign the revocable right of entry permit with the Federal Aviation Administration? The federal government will fund a new air traffic control tower on approximately three acres land at the Bellingham airport. Six potential locations have been identified. The permit will allow the federal government to do an obstruction evaluation, security assessment and environmental review over the next three years. (14352/Action Item #4) Approved 3-0
111. Authorize the executive directoror to sign an updated three-year agreement with Whatcom County and the City of Bellingham regarding a coordinated approach to funding economic development? This agreement was originally approved in December 2010. Through this agreement, the port supports a collaborative commitment to fund the Regional Economic Partnership, fund Western’s Small Business Development Center, maintain the “Choose Whatcom” website, and oversee various contracts with economic development focused activities. The commitment by the port is $951,810 (2025), $980,364 (2026) and $1,009,775 (2027), and the total three-year commitment by the city, port and county is $6,283,015. (14353/Action Item #5) Approved 3-0
112. Establish commission meetings dates for 2025? Meetings will be held on the first and third Tuesday of the month with a starting time of 4:00 p.m. Exceptions: three months will have one meeting; the third Tuesday in July, second Tuesday in August and the third Tuesday in December. (14355/Consent Agenda B) Approved 3-0
113. Appoint Tamara Sobjack (chief financial officer) as auditor and Sarah Eastwood (controller) as deputy auditor for fiscal year 2025? The auditor position reviews and certifies all payments, maintains control over all designated cash funds not invested and in compliance with state law and port policies. Provides oversight with regards to actions of the port officials which may represent malfeasance or misfeasance. (14345/Consent Agenda C) Approved 3-0
114. Designate the chief financial officer as the official responsible for informing the public of the port’s intent to issue tax-exempt bonds? The designation expires on 1/31/2026. 14357/Consent Agenda D (Resolution 1183-U) Approved 3-0
115. Adopt liability insurance standards for port agreements for fiscal year 2025? Liability standards include items like lease (commercial/ land), rental agreements, boathouse brokerage rental agreements, ground transportation, airline leases, air taxi agreements, aviation fuel providers, marine fuel providers, moorage, corporate events, meetings/ events, moorage and boathouse (structure) agreement. No changes have been made from the 2024 liability standards. (14358/Consent Agenda E) Approved 3-0
116. Reaffirm CDS Attorneys at Law (formerly Chmelik, Sitkin & Davis) as the port’s legal counsel for 2025? The firm’s hourly rate will increase to $360 for principals and from $220 to $310 for associates and paralegals. (14359/Consent Agenda F) Approved 3-0
117. Authorize the executive director to apply for a state grant for reimbursement of funds associated with the removal and disposal of a vessel call the Snuggly Duckling? The 30-foot sailing vessel ran aground outside the entrance to Squalicum Harbor. It was moved to dry dock — since it was in a state of disrepair, the vessel was demolished and the port disposed of it. The total removal and disposal costs are estimated to be $15,235. (15360/Consent Agenda C) Approved 3-0
118. Authorize the port’s legal counsel to sign contracts up to a total of $164,400 with Anchor QEA of Seattle (to assist CDS Attorneys at Law — formerly Chmelik Sitkin & Davis) 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, has managed 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 20 state-listed Model Toxics Control Act sites. Anchor QEA has provided the bulk of technical-legal support for these legal efforts. The contract expires on 12/31/2025. (14361/Consent Agenda H) Approved 3-0
119. Amend the 2025 budget to provide $150,000 in additional funding to remove the under-pier fire suppression project at the Bellingham Cruise Terminal? A new code does not require sprinkler protection under concrete piers. The corroded piping, fittings, and hanging/bracing equipment can be demolished. The project bids were larger than the consultant’s estimate. The $150,00 will increase the budget to $736,143. (14362/Consent Agenda I) Approved 3-0
120. Authorize the executive director to sign a three-year $1,321,393 contract with WWU’s Small Business Development Center? In December 2010, the City of Bellingham, Whatcom County and the port came together to jointly fund economic development services. They had been contracting separately and saved money by pooling their resources. Economic development services are: business retention, expansion, recruitment, assistance and supporting research. The agreement has renewed numerous times. The port’s commitment is $427,511 (2025), $440,336 (2026) and $453,546 (2027). This agreement expires on 12/31/2027. (14363/Consent Agenda J) Approved 3-0
121. Authorize the executive director to sign a $60,000 one-year personal service contract with Jennifer Noveck for consultant services? The original contract was approved at the 2/1/2022 meeting, vote #21. Ms. Noveck will implement important economic development divisions work plan items that are consistent with and contribute to the port’s goal of stimulating economic development and job creation. The contract terminates on 12/31/2025. (14364/ Consent Agenda K) Approved 3-0
122. Approve a one-year lease (amendment #6) with the state of Alaska (Alaska Marine Highway System) for the continued use of the Bellingham Cruise Terminal as the terminus for the Alaska ferry? The original 20-year lease was signed in 1989. At the 5/5/2009 meeting, vote #76, a 15-year lease was approved, which terminated on 9/30/2024. For this one-year extension, the base rent will be $839,742 and the operating costs will be $403,970 for a total of $1,243,712. This extension ends on 9/30/2025. (14365/Consent Agenda L) Approved 3-0
123. Write-off $176,808 in delinquent boathouse moorage fees? Blaine Harbor provides covered moorage for 32 vessels in two boathouses. The Blaine Marina had six delinquent customers occupying boathouse slips. Three were in boathouse #1 and three in boathouse #2. The port obtained judgements from Whatcom County Superior Count on three delinquent accounts (Glen Harris – $34,369, Michael Fry – $41,180 and Mogan Dotson – $61,231) to be pursued through property liens and collection agencies) and settled one account (Lee Michaels – $29,223) with the moorage customers. The port’s legal counsel has determined it is unlikely the port will collect on two delinquent accounts (Robert Frayn – $75,226 and Norm Auriat – $101,582) and further efforts will only cost the port more money. Memorandum #14149 was initially discussed at the 11/19/2024 meeting and tabled until this meeting. (Resolution 1419) 41367/ Consent Agenda N) Approved 3-0
124. Appoint Industrial Development Corporation officers and establish the date, time and location of meetings for 2025? (Commission meeting as the board of directors of the Industrial Development Corporation.) President: Michael Shepard; vice president: Bobby Briscoe; secretary: Ken Bell; and treasurer: Tamara Sobjack. Meetings will be convened on “as needed” basis in conjunction with commission meetings. (14370/IDC #1-3) Approved 3-0
125. Establish officers for 2025? President: Bobby Briscoe; vice president: Ken Bell; secretary: Michael Shepard. See the endnote for board representatives. (14371/Action Item #1) Approved 3-0
126. Authorize the executive director to renew the agreement with Fire District 8 for additional support at the Bellingham airport? This vote was not included in the agenda so it didn’t have a memorandum listing the reason for the vote. The Whatcom Watch archives do not contain any previous votes by the Port Commission on Fire District 8. (Other Business) Approved 3-0
Endnote
Whatcom Council of Governments (WCOG):
Bobby Briscoe (Primary), Michael Shepard (Alternate)
Washington Public Ports Association (WPPA):
Ken Bell (Trustee), Bobby Briscoe (Alternate)
Economic Development Investment (EDI) Program:
Ken Bell (Primary), Bobby Briscoe (Alternate)