Port of Bellingham Commission

Action Taken at March 30, 2021 Special Meeting

Shall the commission:
34. Transfer the land lease and project development agreement from All American Marine to RGM Holdings of Austin, Texas, for property located at 1010 Hilton Avenue? RGM Holdings has purchased All American Marine. Bryton Marine Group of Vernon, B.C., is the owner of RGM Holdings. Bryton has businesses in Port Angeles (Btix Marine) and Clarkson (Renaissance), Wash.; Vernon (KingFisher) and Campbell River (Eaglecraft), B.C, with a total of 410 employees. At the 6/16/2015 meeting, vote #82, the commission approved a land lease and project development agreement with All American Marine for a new building in Fairhaven. At the 4/5/2016 meeting, vote #65, the lease and agreement for a new building was moved to 1010 Hilton Avenue. The low bid of $8,873,713 was awarded at the 5/3/2016 meeting, vote #81, for construction of the 57,000 square foot building expected to take eight months. At the 7/5/2017 meeting, vote #89, the contract was increased to $9,637,000 due to design changes, site conditions, building code interpretations and harsh weather causing construction to take approximately 12 months. (10010/Action Item 1) Approved 3-0

35. Approve the collateral assignment of lease and security? This assignment is made as security for the payment of a promissory note in the original principal amount of $5,500,000. (10010/Action Item 2) Approved 3-0

Action Taken at April 6, 2021 Meeting

The commissioners voted to cancel this meeting.

Action Taken at April 20, 2021 Meeting

Shall the commission:
36. Appoint Stan Campbell to the Marina Advisory Committee? The committee was created in 1991. Nine members were reappointed at the 12/8/2020 meeting, vote #121, and one new member at the 3/2/2021 meeting, vote #21. Mr. Campbell is a 42-year resident of Whatcom County and has been mooring his boats at Gate 3. He has worked for the U.S. Forest Service and owned a local environmental maintenance business for 29 years. He will represent the Squalicum boathouse owners. (10033/Consent Agenda H) Approved 3-0

37. Authorize the executive director to sign a new waterway permit agreement with the state of Washington for use of state-owned aquatic lands within the Whatcom Waterway? The permit was first signed at the 12/1/2015 meeting, vote #159. The permit allows the port to continue the use of aquatic lands associated with the Whatcom Waterway cleanup project. These aquatic lands are adjacent to the Landing at Colony Wharf, C Street Terminal, G-P dock and the Bellingham Shipping Terminal. The initial permit ended on 3/31/2021; the new permit expires on 4/30/2026. The annual cost to the port starts at $22,477 and is adjusted for inflation. (10034/Consent Agenda I) Approved 3-0

38. Authorize the executive director to sign an easement agreement with Aliotti Construction for port property adjacent to 1000 C Street, Bellingham? Aliotti Construction owns property at 1000 C Street and is working with the city of Bellingham on development permits. Aliotti Construction is requesting — based on city requirements — easements across port property at 1020 C Street for ingress and egress to their property. The easement is for approximately 986 square feet of property. Aliotti Enterprises, a sister company, is leasing the property at 1020 C Street. The premises is limited to a fish market and fish and chip restaurant. There will be a one-time payment of approximately $14,300. (10035/Action Item 5) Approved 3-0

39. Approve a permit for Pacific Coastal Ventures d/b/a Alaska Wild Fish and Chips of Blaine to operate a food truck in the Blaine Harbor parking lot? The commission has approved yearly permits since the 6/16/2017 meeting, vote #64. The truck will operate five days a week; it will use seven parking stalls in the Gate 3 parking lot. It fills a need that was created by the closure of the Harbor Cafe. (10036/Action Item 5) Approved 3-0

40. Modify a lease with Fairhaven Junction LLC d/b/a The Coffee Junction at the Fairhaven Station? Fairhaven Station is the Amtrak/Greyhound depot. The original 1995 lease was with Ikolea and Laura Jefferts d/b/a/ Fairhaven Coffee and News. In 1998, the lease was with Julia J. Wrucha d/b/a/ Fairhaven Coffee and Tea. In 2006, the lease was with Chris and Heather Lang. The new lease is with Jude Machin. (10037/Consent Agenda L) Approved 3-0 

41. Authorize the executive director to sign a 30-day letter of intent extension with Dominion Sustainable Development Corporation of Bellingham? At the 11/17/2020 meeting, vote #112, the commission authorized the executive director to send a nonbinding letter of intent with Dominion Sustainable Development Corporation of Bellingham. The company wants to trade property they own at 1000 C Street for $350,000 and port property in Fairhaven. The letter of intent was extended for 60 days at 3/2/2021 meeting, vote #22. The city of Bellingham will finalize a rezone application around 4/15/2021. This vote extends the letter of intent to 6/18/2021. (10038/Consent Agenda M) Approved 3-0

42. Appoint Martin Spencer and Grady Henderson to the Bellingham Airport Advisory Committee? Both will serve three-year terms. At the 8/11/2020 meeting, vote #72, the commission voted to make the Technical Airport Advisory Committee and the Airport Advisory Committee a single committee. Some of the reasons for the separate committees no longer exist, and, in recent years, both committees have struggled to find new members and achieve a quorum. Martin Spencer will represent the pilots’ association and Grady Henderson will represent commercial aviation. The committee currently has 20 members, four vacant positions, a minimum of four annual meetings and seven members are a quorum. (10039/Consent Agenda N) Approved 3-0

43. Modify a lease with On-Board Marine Services for premises at the Blaine Marine Industrial Area? In December 2019, On-Board Marine Services entered into a land lease for the former Walsh Marine boatyard at the Blaine Marine Industrial Area. On-Board has added marine brokerage and yacht sales to their business. They are requesting a commercial slip at Squalicum Harbor to display vessels for sale. The modification will approve On-Board as a merchant leaseholder and prohibit them from utilizing the Blaine boatyard to display or store any vessels for sale. (10040/Consent Agenda O) Approved 3-0

44. Authorize the executive director to spend $994,515 to purchase a crane for $151,000, have it partially disassembled, loaded on a barge, and transported from West Sacramento, Calif., to Bellingham for $843,515. The crane is capable of lifting 124 metric tons and has an outreach of 157 feet. The Port of West Sacramento acquired the crane (manufactured in Germany) in 2011 for $5,001,876. It was used briefly in 2012. Since then it has been idle. The crane is needed for central pier repairs and the ABC Recycling Operation approved at the 12/8/2020 meeting, vote #127. A contingency fee of $99,452 brings the total acquisition costs to $1,093,967. Due to time constraints, this action is exempt from the bidding process. (10042/Consent Agenda Q) Approved 3-0

45. Authorize the executive director to accept a $100,000 federal grant for Energize Whatcom, the rural energy audit program? The U.S. Department of Agriculture/Rural Energy for America grant requires a port match of $43,660. Energize Whatcom will deliver education and energy audits to small business throughout the rural areas of the county, including Blaine, Everson, Ferndale, Lynden, Nooksack and Sumas. Sustainable Connections, Spark Northwest and the Whatcom Conservation District are Energy Whatcom partners. The port will provide project management and outreach assistance. (10043/Action Item 1) Approved 3-0

46. Appropriate $175,000 for the installation of security gates at Squalicum Harbor? There has been a recent increase in theft in the vicinity of Gate 5 and the weblockers. A second full-time guard has been assigned to the area, increasing security costs. Security gates will be installed across North and South Harbor Loop Drive limiting access during specific hours to marina customers and weblocker tenants. A manual gate with a hold-open latch will be installed across South Harbor Hoop Drive and key card readers will be installed on both sides of the North Harbor Loop Drive gate. (10044/Action Item 2) Approved 3-0

47. Appropriate $75,739 for the construction of the Peter Paulsen Stage in the Waterfront District? The money was donated by Peter Paulsen for the construction of a 20 x 20 foot stage adjacent to the digesters. Power to the stage will come from electrical infrastructure installed for a previous project in the area. (10045/Action Item 3) Approved 3-0

48. Modify a lease with Seaview Boatyard North Inc. for premises at Squalicum Harbor? The original lease was approved in 2002, with options; the lease was scheduled to end on 4/30/2042. The lease has been modified and renewed six times since 2002. This modification will allow upland vessel moorage, construction of a building for large vessel repair and maintenance, installing a fueling facility and extending the lease to 4/30/2062. Annual rent will increase from $156,200 to $161,800 and be adjusted every five years. (10046/Action Item 4) Approved 2-1, Bobby Briscoe opposed.

49. Writeoff a delinquent balance of $44,141. The amount due for Bellhaven Inc. is $26,775 and for Seafarms International is $17,366? When Bellhaven Inc. — a yacht sales and service company — filed articles of dissolution on 8/18/2020, it abandoned 40 slips that reverted back to the port. Of the total amount due, 92 percent or $24,701 is for moorage. When Seafarms International entered the harbor, it claimed to be a commercial vessel. The customer could not provide proof, so it was charged recreation moorage rates. When it didn’t pay moorage fees, the port declared the vessel abandoned/derelict and was about to  have it destroyed when it snuck out of the harbor. Of the total amount due, 82 percent or $14,162 is for moorage. (10049/Consent Agenda C) Approved 3-0

50. Authorize the executive director to accept a $2,639,217 federal grant under the Coronavirus Response and Relief Supplemental Appropriations Act? These Airport Coronavirus Response Grant Program funds are allocated by the Federal Aviation Administration. At the 5/5/2020 meeting, vote #37, the port received $5,015,715 in CARES act funds for the airport. These grant funds can be used for airport operations, personnel, cleaning, sanitization, janitorial services combating the spread of pathogens, debt service payments and concession relief. (10050/Consent Agenda D) Approved 3-0

51. Authorize the executive director to accept a $100,000 state pass-through grant for 360 Modular Building Systems in Ferndale? The Port of Bellingham secured the grant for 360 Modular to make improvements to their existing facility, to expand office space and building upgrades, retain 10 jobs, create 35 jobs by June 2021 and 75 jobs within a five-year period. 360 Modular constructed tiny homes for Whatcom County; 35 were used at Geri Field and 50 at the Gardenview Village at the former Clean Green facility on Old Woburn. The executive director is also authorized to sign a contract with 360 Modular Building Systems for this grant. (10051/Consent Agenda E) Approved 3-0

52. Authorize the executive director to sign the third cost-sharing agreement (amendment #2) with Bornstein Seafoods for the I&J Waterway? At the 5/3/2005 meeting, vote #63, the commission authorized the executive director to sign an agreement with Bornstein Seafoods to share costs for a remedial investigation/feasibility study of the I&J Waterway site. The port and Bornstein had been labeled as potentially liable parties for contamination and were responsible for the cleanup. In 2007, the remedial investigation/feasibility study was put on hold and re-started with a second cost-sharing agreement approved at the 12/18/2012 meeting, vote #195. At the 9/3/2019 meeting, vote #109, the executive director signed amendment #1 to the third cost-sharing agreement with Bornstein Seafoods. (10052/Consent Agenda F) Approved 3-0

53. Authorize the executive director to sign an $845,449 contract (amendment #4) with Crete Consulting of Seattle to perform final design, bid plans and documents for sediment cleanup at the I&J Waterway? The port and other parties have investigated the site since 1995. The state Department of Ecology determined that the site is contaminated and issued potential liability letters to the port and Bornstein Seafoods. At the 12/7/2004 meeting, vote #116, the commission authorized the executive director to sign a $249,470 contract for a remedial investigation/feasibility study of the the waterway. The Retec Group of Seattle completed 90 percent of the work in 2006. In 2007, the state temporarily suspended the project pending clarification of the dredge management program. At the 9/20/2011 meeting, vote #136, the total cleanup costs increased from $817,230 to $1,634,460 and the state contribution increased from $150,450 to $817,230, which is 50 percent of the total cost and the amount available under the Model Toxics Control Act. At the 5/20/2014 meeting, vote #75, the executive director signed a contract to complete the remedial investigation/feasibility study of the the waterway. At the 6/4/2019 meeting, vote #71, the executive direct signed a $769,927 contract with Crete Consulting, including a contingency fee, for remedial design and permitting. This amendment brings the total authorized amount to $1,615,376. (10052/Consent Agenda F) Approved 3-0

54. Authorize the executive director to sign a memorandum of understanding with the state of Washington for the storage of a green crab cargo trailer? European green crabs are classified as a prohibited species in the state of Washington. The crabs can devastate local environments, displace, degrade and prevent restoration of native species, such as eelgrass beds, alter food webs and threaten the local seafood industry. In 2019, green crabs were detected at Drayton Harbor and Lummi Bay. For an article on the 2020 Drayton Harbor removal effort go to: https://wsg.washington.edu/completing-the-first-year-of-a-collaborative-removal-effort-at-drayton-harbor/. The 6 x 10 foot cargo trailer will be parked at a mutually agreed Blaine Harbor location. The storage period runs from 4/12/2021 to 11/30/2021. (10053/Consent Agenda G) Approved 3-0

55. Allow residents of the tiny home shelter on Cornwall Avenue to occupy the homes for one year from commencement of occupancy? At the 12/8/2020 meeting, vote #131, the commission voted to allow the Cornwall Avenue property to be used for a temporary home encampment. The city of Bellingham and Whatcom County are responsible for finding a qualified operator. (Other Business) Approved 3-0  

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