Port of Bellingham Commission

Action Taken at December 1, 2015 Meeting

Shall the commission:
157. Authorize the executive director to sign a renewed lease agreement with Gary W. Rogers and Vicki Ann Rogers, d/b/a Inside Passage Gifts? The gift shop began their tenancy in the Bellingham Cruise Terminal on 10/1/1989. The Rogers’s current lease will expire 12/31/2015; they are requesting a one-year renewal period at the same rental rate. Annual rent will be $5,316. (5554/Consent Agenda B) Approved 3-0

158. Authorize the executive director to sign a release and settlement agreement with the Continental Casualty Company? Yacht owners Steve/A. Herbert Ershig and Daniel/Ariane Ringlers were required to name the port as an additional insured on their insurance policies for vessels they moored at the Squalicum Harbor G East Boathouse. After the boathouse fire on 3/30/2012, the port’s insurance carrier Starr Indemnity & Liability Company undertook the defense of the port in various lawsuits. Continental and Boat U.S., its marine insurance program manager, undertook the defense of the Ershigs and Ringlers. Continental and Boat will pay $200,000 to Starr for the port’s defense costs. The port will release Continental and Boat from all claims it could have brought against Continental and Boat arising from the fire. The release does not apply to any claim the port could have against the Ershigs or Ringlers for liability for the fire. (5548/Action Item 1) Approved 3-0

159. Authorize the executive director to sign a defense costs funding agreement with Standard Fire Insurance Company? Yacht owner Randle Carr was required to name the port as an additional insured on his insurance policy for a vessel he moored at the Squalicum Harbor G East Boathouse. After the boathouse fire on 3/30/2012, the port’s insurance carrier Starr Indemnity & Liability Company undertook the defense of the port in various lawsuits. Standard undertook the defense of Carr. Standard will pay $210,000 to Starr for the port’s defense costs incurred to 7/15/2015. The agreement further provides that Standard will work with Starr for a joint funding agreement for costs that have been and will be incurred after 7/15/2015. This agreement does not apply to any claim the port could have against Carr for liability for the fire. (5549/Action Item 2) Approved 3-0

160. Authorize the executive director to sign an agreement for emergency response services with Whatcom County’s Fire Protection District #8? Under this agreement, the fire district will provide fire protection, emergency medical services, and crash fire rescue support to the Bellingham airport. Annual cost to the port will be $117,070. (5550/Action Item 3) Approved 3-0

161. Authorize the executive director to sign a $57,620 contract (amendment #2) with Landau Associates of Edmonds to perform engineering, design and permitting support at the Cornwall Avenue landfill cleanup site? The original contract for $598,700 was approved at the 9/2/2014 meeting, vote #118. Due to historical municipal landfill operations, the site requires remedial action, including a capping system to contain the municipal refuse and woodwaste in place. Port staff has identified material located at Hilton Avenue as a source of suitable fill for the capping system. Removal of the material will allow construction of the new All American Marine building at the corner of Hilton and Roeder Avenues. Scope of work includes soil characterization, permitting assistance, and design of plans and specifications related to the import and placement of fill. This amendment brings the total contract to $716,190. (5551/Action Item 4) Approved 3-0

162. Approve a warehouse lease (amendment #1) with the State of Alaska? The Alaska Marine Highway System has recently restructured its warehousing program, leading to increased capacity in Ketchikan and unused space in Bellingham. Additionally, the highway system is experiencing significant budgetary challenges due to the drop in crude oil prices. Due to the port’s long-term relationship with system, and an urgent request from Alaska to reduce costs for unused space, port staff recommends reduction of leasable area in warehouse #4. This lease amendment modifies the lease premises from 9,780 square feet to 2,636 square feet, and reduces the monthly rent by $3,712. Estimated cost for installing a fence to reconfigure warehouse space is $6,000. (5555/ Action Item 5) Approved 3-0

163. Approve a terminal services agreement (amendment #4) with the State of Alaska? The original terminal service agreement began in 1989. The agreement with the Alaska ferry (Alaska Marine Highway System) includes staffing for ticketing, reservations, vehicle embarking and disembarking and janitorial services for ferries. This amendment runs from 10/1/2015 through 9/30/2018. The first year of the contract will generate $184,914 in annual revenue or $405,052 over the three years. (5556/Action Item 6) Approved 3-0

164. Authorize the executive director to sign a waterway permit agreement with the state of Washington for use of state-owned aquatic lands within the Whatcom Waterway? The permit will allow port’s continued use of aquatic lands associated with the Whatcom Waterway project. These aquatic lands are adjacent to the Landing at Colony Wharf, C Street Terminal, GP dock and the Bellingham Shipping Terminal. The permit is for five-years beginning on 4/1/2016 and ending on 3/31/2021. The annual cost to the port starts at $15,233 and is adjusted for inflation. (5552/Action Item 7) Approved 3-0

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