Port of Bellingham Commission

Action Taken at November 3, 2015 Meeting

Shall the Commission:
139. Authorize the sale of one vessel for the nonpayment of moorage fees? An auction will be held on 12/4/2015 for a 17-foot gillnetter with unpaid moorage fees of $1,215. (5513/Consent Agenda B) Approved 3-0

140. Authorize the executive director to sign a contact extension (amendment #1) with Harcourt Bellingham (amendment #1) for submittal of a completed building permit for the Granary Building? There is no fiscal impact associated with this three-month extension. A master development agreement was initially approved at the 3/31/2015 special meeting, vote #53. Harcourt has initiated shoreline permitting and design review with the city of Bellingham; however, based on initial feedback from the city, plan revisions are required. These revisions have impacted Harcourt’s ability to meet permitting within six months. The extension is an interim step and does not represent an extension to the completion of the Granary Building or any other requirement under the master development agreement. Under this amendment, Harcourt will be required to submit a building permit by 2/19/2016. (5509/Action Item 1) Approved 3-0

141. Authorize the executive director to sign a $98,850 contract (amendment #9) with Anchor QEA of Seattle to complete design drawings for the Squalicum Creek restoration project? At the 7/6/2010 meeting, vote #103, Anchor QEA (formerly Anchor Environmental) was authorized to produce a conceptual plan for major components of the project. The port and Department of Ecology are co-managers of a cooperative partnership of federal, state, local, and tribal agencies working to improve the environmental health of Bellingham Bay. Phase One work in the outer estuary was completed in December 2013. Phase Two includes modification of the BNSF bridge, replacement of the Roeder bridge, removal of petroleum-impacted soils, accommodation of a new sewer line, creation of a fresh water estuary, and improvement of habitat and creek flow. The port has received grants to continue this work. While the entire project will be transferred to the city of Bellingham for completion and execution, the port will assist in applying for grants and securing funding. A contingency fee of $9,885 brings the amended contract to $733,735. (5510/Action Item 2) Approved 3-0

142. Authorize the executive director to sign an exclusive negotiating agreement with DKoram, Ltd. of Hong Kong, China and Bio-Fibre Manufactures, Inc. of Mission, B.C., Canada to export logs and bio-fuels to the Asian market? The agreement will allow the potential lessees to conduct a feasibility study of the approximately 20-acre Bellingham Shipping Terminal and Log Pond area. Staff has determined that this agreement will benefit the port. DKoram will handle the market for logs; Bio-Fibre Manufactures will handle the market for bio-fuels. The proponents believe that there is potential synergy of co-locating these operations at BST. A due diligence period will begin on 11/3/2015 and end no later than 4/29/2016. (5511/Action Item 3) Approved 3-0

143. Approve lease documents with Cohanim Bellwether and Cohanim Bellwether D pertaining to Building A and Parcel D-1 at Bellwether on the Bay? The second amendment to the amended and restated capital ground lease will allow residential space on the 3rd and/or 4th floors of Building A. The fifth amendment to this lease modifies the commencement date for construction of Building D. The terms and conditions remain the same for the $100,000 extension fee: if any extension date is not fully performed, $70,000 is retained as the “extension fee.” Cohanim is required to pay the entire base rent of $866,124 on the earlier of (1) the first day of the first calendar month after construction commences on Building D or (2) within two consecutive calendar years of the closing date. As closing on the D-1 parcel occurred 9/18/2015, the two-year period will begin on 9/19/2015 and will end on 9/18/2017. Fiscal impact: Cohanim Bellwether LLC will make a capital lease payment of $866,124 as base rent provided all extension dates are met, plus the extension fee and all amounts outstanding from Bellwether Gate. (5518/Action Item 4) Approved 3-0

Action Taken at November 17, 2015 Meeting

Shall the Commission:
144. Authorize the executive director to approve a $51,344 payment to the state of Washington for aquatic lands harbor leases adjacent to the Whatcom Waterway? The state issued two leases to Georgia-Pacific for the treatment lagoon known as the Aerated Stabilization Basin. The leases are for a pipeline under Whatcom Creek to the treatment lagoon for stormwater treatment and the outfall pipe from the treatment lagoon into Bellingham Bay. The treatment lagoon is part of the Whatcom Waterway cleanup site. Since 6/30/2008 the port has been using the ASB and pipeline system to manage stormwater and industrial process water. This payment is for 12/1/2015 through 11/30/2016. (5540/Consent Agenda B) Approved 3-0

145. Authorize the executive director to sign a $97,500 contract (amendment #9) with Anchor QEA of Seattle for revisions of the Central Waterfront site feasibility study? The original contract for $176,300 was approved at the 5/14/2012 meeting, vote #90. The site is approximately 55 acres of industrial property, used for bulk fueling, boat yard operations, rock crushing and municipal waste disposal. This amendment is the finalization of the feasibility study for state review and the oversight of a “Hot Spot” removal action being conducted in conjunction with the Whatcom Waterway Phase I cleanup action currently in progress. This amendment brings the total contract to $824,630. (5541/Consent Agenda C) Approved 3-0

146. Authorize the executive director to sign a $15,000 contract (amendment #4) with Moffatt & Nichol of Long Beach, California to perform construction support services for the Bellingham Shipping Terminal, former GP pier condition survey, and BST pier repair project? This amendment is for the fourth and final phase of this year’s project. Scope of work is to perform construction support services for repairs to the Bellingham Shipping Terminal for both capital maintenance and post event repairs. This amendment brings the total contract to $273,003. (5542/Consent Agenda D) Approved 3-0

147. Incorporate the capital projects contained in the 2016 strategic budget into the Comprehensive Scheme of Harbor Improvements? (Public hearing held) The harbor improvements are: Blaine wharf district master plan, Sumas international cargo terminal, Bellingham airport master plan, Squalicum Harbor improvements, waterfront district plan and Fairhaven Harbor improvements. 5530/Action Item 1 (Resolution 1346) Approved

148. Adopt the 2016 strategic budget? (Public hearing held) The regular property tax levy in 2016 will result in approximately $6,993,644 in revenue for the port. 5530/Action Item 2 (Resolution 1347) Approved 3-0

149. Adopt the 2016 property tax levy? The 2016 property tax levy is .2877 cents per $1,000 of assessed valuation and tax income is estimated at $6,993,644. The revenue is believed to be the same as the 2015 property tax levy.The levy will be used to pay operating expenses, debt service, and capital costs of the port’s Public Priority Programs as well as Bellingham Waterfront development. When the county assessor provides a final property assessment, staff will prepare a modified resolution. 5531/Action Item 2 (Resolution 1348) Approved 3-0

150. Authorize the executive director to sign $1,584,079 in contracts to implement the 2016 employee benefits program? The estimated cost for 2015 is $136,480 below 2014. The port’s share is: $1,395,808 for medical; $104,523 for dental and vision; $9,835 for life/accidental death/dismemberment; $14,981 for long-term disability and $2,740 for employee assistance. The employees monthly share for families is $116.51. There is a broker fee of $45,000. (5532/Action Item 5) Approved

150. Authorize the executive director to award the low bid of $617,929 to Razz Construction of Bellingham for the Bellingham Shipping Terminal repair project? Capital maintenance scope of work includes repairs to the timber pier and repairs to steel piles, concrete pier and bulkhead. Work includes repair of damage caused by Horizon Fairbanks breaking free of its moorings during a high wind event 12/9/2014. The work was advertised and five bids were received. The contract includes a contingency fee of $61,793 bringing the authorized total amount to $679,722. (5533/Action Item 4) Approved 3-0

151. Authorize the executive director to sign a $94,190 contract (amendment #11) with BergerABAM of Federal Way for consultant support services for the Harris Avenue timber pier replacement project? State Model Toxic Control Act funds are not available, so the cleanup/pier replacement project cannot proceed as originally envisioned. The original plans and permits were produced under the Nationwide Permit 38 format, which included cleanup. Permanent replacement of the timber pier without cleanup is invalid under NWP 38; new permitting under NWP 3 for maintenance of in-water facilities is required. This project will allow cleanup of historic contamination in the future, when Model Toxic Control Act funding becomes available. This amendment includes a contingency fee of $10,000 bringing the total contract to $1,328,607. (5534/Action Item 5) Approved 3-0

152. Authorize the executive director to execute a restated memorandum of understanding for All American Marine’s building expansion and site preparation on Hilton Avenue? At the 6/16/2015 meeting, vote #82, the port approved a memorandum with All American Marine to prepare a site at the Warehouse #9 location and construct a 39,000 square foot building for manufacturing at the Fairhaven Shipyard site. In October, the state informed the port that the Department of Ecology would not be funding the remediation project. This increased costs considerably and extended the project timeline. Port staff and All American Marine considered alternative sites and agreed to move the project from Fairhaven to Hilton Avenue. The Hilton Avenue site is much more advantageous than the current Fairhaven Shipyard site. (5535/Action Item 6) Approved 3-0

153. Authorize the executive director to sign a $50,000 contract (amendment #3) with Carletti Architects of Mount Vernon for the All American Marine facility expansion? Carletti will do a site analysis and building configuration at the new Hilton Avenue site. The building expansion site has been moved from Fairhaven Shipyards, where company currently resides, to a site on Hilton Avenue. Design of the new building will mostly be re-used in this new location. Locating the building on the site, along with site engineering, will be new efforts. This amendment brings the total contract to $328,728. (5536/Action Item 7) Approved 3-0

154. Approve a new lease between the port and Edward Jones for premises located in the Harbor Center Building? The lease is for approximately 1,300 square feet of space and provides for a seven-year initial period with a three-year firm term. The lease provides for a three-month no rent period to allow the lessee to prepare for occupancy. Nominal rent for the 33 monthly firm term is $48,100 less the broker commission payment of $2,405. The seven years commence on 12/1/2015 and expires on 11/30/2022. (5537/Action Item 8) Approved 3-0

155. Authorize the executive director to sign documents required to close the $75,000 loan to Transition Composites Inc.? The port’s loan will allow Transition Composites Inc. to purchase new equipment allowing increased manufacturing capability. The company is located in Ferndale and works in the field of advanced composites. (5538/Action Item 9) Approved 3-0

156. Approve the 2016 Industrial Development Corporation budget? (Commission meeting as the Industrial Development Corporation.) The budget anticipates revenues of $29,220 and expenses of $16,859. (5544/IDC 2) Approved 3-0

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