Port of Bellingham Commission

Action Taken at April 4, 2017 Meeting
Shall the commission:

42. Modify a lease and a surplus personal property transfer agreement with Bitter End Boatworks and authorize the executive director to sign a certificate for surplus port property? Bitter End Boatworks operates Hilton Harbor Marina, located at the end of Hilton Avenue adjacent to the I&J Waterway. This is the fourth lease modification, it adds 13,200 square feet to the leasehold and provides a new ten-year lease term with the right to renew for two consecutive five-year periods. The agreement transfers port-owned wooden floats and ramps to Bitter End, and requires the company to remove this surplus property from the leasehold and dispose of it. In order to surplus port property, the executive director is required to provide written certification that the property is no longer needed. Total rent for the ten-year term will be $914,000. (6689/Action Item 1) Approved 3-0

43. Authorize the executive director to sign an agreement with the Washington Lottery to operate a vending machine? The vending machine will be located in the terminal building at the Bellingham airport. The lottery will stock and maintain the machine. The agreement will be effective 4/1/2017, and the term will be on a year-to-year basis. The port will receive compensation of $960 per year. (6691/Consent Agenda C) Approved 3-0

44. Appoint Dave King to the Marina Advisory Committee? Dave King is a retired Coast Guard officer and the current co-owner/manager of Bellhaven Yacht Sales and Charters. This appointment is for three years. (6693/Consent Agenda E) Approved 3-0

45. Authorize the auction of a vessel for non-payment of moorage fees? An auction is scheduled to be held at Squalicum Harbor on 4/28/2017 for a 22-foot sailboat with unpaid moorage fees of $1,957. (6694/Consent Agenda F) Approved 3-0

46. Authorize the executive director to accept an $670,000 remedial action grant (amendment #1) from the state of Washington for the Harris Avenue Shipyard? The grant was renewed at the 3/3/2015 meeting, vote #38. The state recently notified the port that it is eligible for an additional $670,000 of Model Toxics Control Act funding for work on the remedial investigation/feasibility study and interim action at the shipyard site. This work includes upland excavation and offsite disposal of contaminated soil, in-water dredging and offsite disposal of contaminated sediments, demolition of the Carpenter Building, removal of creosote-treated wood portions of the pier, and replacement of the pier. The grant bring the total in state funding to $6,670,000. (6695/Consent Agenda G) Approved 3-0

47. Authorize the executive director to sign a $275,923 contract (amendment #2) with Pacific Security of Bellingham to provide security services? This amendment will provide a 4.7 percent increase in the billing rate. The contract runs from 6/1/2017 to 5/31/2018. This amendment brings the total contract to $796,729. (6697/Consent Agenda I) Approved 3-0

48. Authorize the executive director to sign a $9,675 contract (amendment #6) with Wilson Engineering of Bellingham for surveying services within the Waterfront District? The initial contract was approved at the 3/3/2015 meeting, vote #39. Scope of work includes creating as many as ten franchise utility easements along Granary Avenue and Laurel Street. A contingency fee of $967 brings the amendment to $10,642 and the total authorized contract to $126,637. (6698/Consent Agenda J) Approved 3-0

49. Authorize the executive director to sign a commercial line extension agreement with Puget Sound Energy of Bellevue? It will cost the port $27,349 for the installation of 200 feet of primary electrical line, a transformer, and poles to provide electrical power to a tenant located at the Bellingham Shipping Terminal log pond. (6699 /Consent Agenda L) Approved 3-0

50. Authorize the executive director to sign a defense cost agreement with Safeco Insurance Company of America? David Peterson and Roger Smith, respectively, named the port as an additional insured on their yacht insurance policies through Safeco for yachts they moored at the Squalicum Boathouse. After the 3/30/2012 boathouse fire, the port’s insurance carrier, Starr Indemnity & Liability Company undertook defense of the port in various state and federal lawsuits. The port, at the expense of Starr, tendered defense to Safeco. Safeco agreed to participate in the port’s defense of the liability claims against it. The port and Safeco have reached an agreement for Safeco’s payment of $550,000 to Starr for the port’s defense costs through 7/14/2015; the release and settlement agreement refers. The defense cost agreement also provides that Safeco will work with Starr on a joint funding agreement for the port’s defense costs from 7/15/2015 onward. (6701/Consent Agenda N) Approved 3-0

51. Authorize the executive director to sign a master construction staging and access agreement with the city of Bellingham? At the 12/3/2013 meeting, vote #176, the commission approved a master plan with the city of Bellingham for the Waterfront District. The agreement included a provision that the port provide property (as available) to the city for construction staging at no cost to the city. The city is embarking on the first phase of construction of parks and infrastructure within the Waterfront District, and has requested construction staging and access for this work. This agreement outlines terms of city use of port land and restoration once construction is completed. (6704/Consent Agenda H) Approved 3-0

Action Taken at April 18, 2017 meeting
Shall the commission:

52. Authorize the executive director to increase by $100,000 the RAM Construction contingency fee for the All American Marine manufacturing facility? The original contract for $9,317,000 was approved at the 5/3/2016 meeting, vote #81. Two factors led to the need for the contingency fee increase: changes to mechanical systems necessary to provide proper system communication and alarm integration, and the need to start tenant improvements and boat construction prior to building completion. The $100,000 will increase the contingency fee to $643,287 and will bring the total authorized contract to $9,517,000. (6709/Action Item 1) Approved 3-0

53. Approve a water-reliant commercial marine rental policy? Water-reliant commercial marine businesses require waterfront locations and cannot be located elsewhere. Generally, ground lease rates will be based on the fair market rental rate using land value of the port’s rate of return; building lease rates will be provided at a 10 percent discount from the rental revenue standards. This policy shall be implemented for water-reliant businesses as new leases are approved and as existing leases are renewed. Revenue is expected to go down; however, this policy is expected to attract new marine businesses. (6710/Action Item 2) Approved 3-0

54. Declare specified equipment as surplus and sell at public auction? The surplus property includes: two above ground storage tanks, paint sprayers, welding equipment, oil skimmer system, APD parking equipment, ticket booth, spider box, 10 air compressors, 10 truck tires, two chain saws and small generators, 10 inch table saw and much more. 6712/Consent Agenda B (Resolution 1322-B) Approved 3-0

55. Authorize the executive director to sign documents to close the $39,700 loan to Fernandez Auto Body of Ferndale? The auto body shop is located in Ferndale. The port loan (from the Economic Development Administration revolving fund) will pay for the installation of a paint booth, exhaust system, and purchase of initial inventory needed to open for business. Marginal costs to the port will be recouped from loan fees. (6713/Consent Agenda C) Approved 3-0

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