Port of Bellingham

Action Taken at July 5, 2017 meeting

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

Shall the commission:
88. Modify a harbor land lease (amendment #2) with The Landings at Colony Wharf for premises on C Street? At the 11/2/2004 meeting, vote #109, Chevron donated the property at 1020 C Street to the port in exchange for the port assuming responsibility for environmental cleanup of the 4.6-acre site. The property is part of the old Roeder garbage dump. At the 9/5/2006 meeting, vote #102, The Landings at Colony Wharf entered into a harbor land lease for approximately 3.52 acres of the land. At the 5/5/2014 meeting, vote #61, the commission approved an additional 10-year lease with two 10-year renewal options for premises at C Street adjacent to the Whatcom Waterway. This modification authorizes the use 6.7 acres of land and 43,000 square feet of buildings for marine-related activities. The use of and access to adjacent facilities were established in consideration of the BMI Properties Northwest lease, and to insure cooperative use of shared facilities. In order to expand the C Street terminal, the port has negotiated termination of BMI’s current lease and issuance of a new lease for property across C Street. Due to its enlarged leasehold, Colony Wharf rent will increase from $136,000 to approximately $159,000 per year. (6896/Action Item 1) Approved 3-0

89. Authorize the executive director to increase by $120,000 the contingency fee for the RAM Construction contract for the All American Marine manufacturing facility? The original contract for $9,317,000 was approved at the 5/3/2016 meeting, vote #81. A group consisting of port staff, RAM, and the design team has determined that additional contingency funds are required, due to unexpected additional costs of mechanical changes and disruption to construction tasks by AAM’s early occupancy of the building. All costs associated with the building, including this proposed contingency increase, will be paid back by AAM per the terms of the lease. The contingency fee total is $763,287 and the total contract is $9,637,000. (6898/Action Item 3) Approved 3-0

90. Authorize the executive director to renew the port’s property and crime insurance coverage? The total insured value of the property is $495 million. Alliant Insurance Services of Newport Beach, California serves the port’s broker of record. Earthquake coverage is increasing from 25 to 50 million. The property premium is increasing from $632,774 to $663,871, crime insurance is remaining at $1,477 for the period 7/1/2017 through 7/1/2018. (6899/Action Item 4) Approved 3-0

91. Authorize the sale of one vessel for the nonpayment of moorage fees? An auction will be held on July 28 for a 24-foot sailboat with unpaid moorage fees of $1,704. (6901/Consent Agenda B) Approved 3-0

92. Authorize the executive director to accept an estimated $30,000 federal grant for costs incurred during a severe winter weather event? Between 2/3/2017 and 2/9/2017, severe weather affected operations at Bellingham airport, causing unusually high expenses for deicing and snow removal to keep the airport operationally available as required by the Federal Aviation Administration. The port is participating in the disaster relief funding process; staff expects the Federal Emergency Management Agency to approve reimbursement. Accepting this grant will allow the port to recover 87.5 percent of the allowable costs associated with deicing and snow removal incurred during the declared event. (6902/Consent Agenda C) Approved 3-0

93. 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 hotel, conference center and restaurant at the Bellingham airport. The lease was for 50 years with one 25-year renewal option. While Bellingham HI has commenced paying rent, the firm has been working on providing financial security required by its bonding company. Its bonding company has requested clarification of the port’s standard verbiage. (6904/Consent Agenda E) Approved 3-0

94. Terminate a harbor land lease with BMI Properties Northwest and approve a new one? At the 2/19/2013 meeting, vote #45, BMI (Bellingham Marine Industries) was issued a 30-year lease for approximately two acres of land and Whatcom Waterway use on C Street. The lease authorized the manufacture of pre-cast concrete, loaded onto a barge and sent to customers. The use of and access to adjacent facilities were established in consideration of The Landings at Colony Wharf lease, and to insure cooperative use of shared facilities. The lease terminates BMI’s obligation to pay costs ($100,000) associated in upgrading the heavy-lift area at the C Street terminal. In order to expand the C Street terminal, the port has negotiated termination of BMI’s current lease and issued a new lease for property across C Street. The term commences 5/1/2017 and ends on 5/31/2043. The base rent will be $22,500 per year plus fees for moorage. (6905/Action Item 2) Approved 3-0

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