Compiled by Bill McCallum
Action Taken at September 7, 2021 Meeting
Shall the commission:
103. Approve a terminal services agreement (amendment #6) 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. This amendment runs from 10/1/2021 through 9/30/2024. The first year of the contract will generate $236,661 in annual revenue and increase 3 percent to $251,074 in the final year. (10353/Consent Agenda D) Approved 3-0
104. Modify a lease with the United States Coast Guard for the Fairhaven Terminal? At the 7/19/2005 meeting, vote #79, the commission approved a lease for a stub pier to moor two 87-foot vessels, approximately 1,000 square feet of warehouse space and 1,400 square feet of office space. The rent/moorage costs for two years is $133,524, increased 3 percent annually and expire on 9/30/2022. (10355/Consent Agenda F) Approved 3-0
105. Authorize the executive director to sign a lease agreement and tenant improvements with Southwest Airlines? Starting on 11/7/2021, Southwest Airlines has scheduled three daily departures to Oakland and Las Vegas. The airline will lease 2,730 square feet of space in the terminal building, which will contain a break room, conference and training room, baggage and storage cages, offices and lockers for 29 employees. The airline will fund $300,000 of the estimated $430,000 cost of the improvements. At the 2/18/2021 meeting, vote #19, the commission authorized the executive director to extend the Air Service Incentive Program at the Bellingham airport. The incentive program was first passed at the 6/19/2018 meeting, vote #92, and it expired on 12/31/2020. In recent years, airlines expected underserved airport owners to provide financial incentives and inducements to keep their services through waivers of landing fees and office space rental, minimum revenue guarantees, and matching advertising expenses for new daily service. The estimated cost to the port is $810 per flight or $295,716 annually. (10358/Action Item 1) Approved 3-0
106. Authorize the executive director to sign an option for Mercy Housing Northwest of Seattle and The Millworks of Bellingham to purchase approximately 3.3-acres in the Waterfront District? The housing covenant allows the port to sell the property for below market value. The fair market value is $3,593,700 and purchase price is $2 million. The mixed-use development consists of two projects with one or more buildings. The property is the former Lignin warehouse parcel and is located at the corner of Cornwall Avenue and Laurel Street — it will contain affordable housing and a food campus. The housing unit may contain an early learning/childcare center and the second will be devoted to food-based industries, food production and food distribution. (10359/Action Item 2) Approved 3-0
107. Authorize the executive director to sign a $32,542 contract with Infax Inc. of Alpharette, Georgia, for a flight information display system and advertisement system services at the Bellingham airport? At the 9/6/2016 meeting, vote #148, the airport transitioned from a multi-airline common-use terminal system to the flight information display and advertising system with Terminal Systems International of Saskatoon, Saskatchewan. Infax provides flight information displays and digital advertising networks at 69 airports in North America. The advertisement component of the system will allow the airport to display advertisements in both still image and video format, enabling revenue generation through paid advertisements. This contract expires on 10/31/2023 and may be extended for one additional year. (10362/Consent Agenda B) Approved 3-0
108. Authorize the executive director to sign an agreement with the Economic Development Alliance of Skagit County, Economic Development Council for Island County and the San Juan County Economic Development Council? The agreement will create the Northwest Recovery Project to fund a regional economic resiliency and recovery strategy for businesses. The agreement expires on 12/31/2023. (10364/Consent Agenda I) Approved 3-0
Action Taken at September 21, 2021 Meeting
Shall the commission:
109. Authorize the executive director to sign an amendment with the state of Washington to an agreed order for the Cornwall Avenue landfill? The agreed order is between the state, the port and the city of Bellingham. The commission authorized the executive director to sign the original order at the 12/7/2004 meeting, vote #115. The Cornwall Avenue landfill is approximately 16.5 acres located at the south end of Cornwall Avenue next to the bay. From 1888 to 1946, the property was used by a sawmill for log storage and wood disposal. Next it was used for municipal solid waste disposal from 1953-65. Recently the dumpsite was buried under a layer of soil. Material dredged from the Squalicum Harbor marina was covered with a waterproof sheet to redirect rainwater so that less water flows through the remaining municipal waste. In 2014, the port, state, and the city of Bellingham entered into a consent decree (5/19/2014 meeting, vote #92) confirming that the fill material will be used as part of the environmental cap for the landfill cleanup. This agreement expires on 9/30/2024. (10403/Consent Agenda B) Approved 3-0
110. Small works roster. Contracts under $300,000 fall within the executive director’s spending authority; they only require commission notification. The executive director awarded a $190,400 contract to Rawls Electric to repower a dockside pump station. The executive director awarded a $61,959 contract to Dawson Construction for the Peter Paulsen stage at the Waterfront District. At the 4/20/2021 meeting, vote #47, the commission appropriated $75,739 — donated by Peter Paulsen — for the construction of a 20 by 20 foot stage adjacent to the digesters. (10404/Consent Agenda C) Approved 3-0
111. Renew a lease with Ouilette Brothers Yacht Sales (dab Bellingham Yacht Sales and Bellingham Yacht Charters) at 1801 Roeder Avenue? The businesses are located in suites 164, 168 and 174. They have been port tenants since 1985. In 2021 leases were transferred from first-generation owners, Dean and Donna Ouilette, to second-generation owners, Matthew and Heather Ouilette. The leases expire on 8/31/2023 with four, two-year renewal options. (10405/Consent Agenda D) Approved 3-0
Action Taken at October 5, 2021 Meeting
The meeting was cancelled due to the size of the agenda.
Action Taken at October 19, 2021 Meeting
Shall the commission:
112. Authorize the executive director to sign proof of loss statements with Lexington Insurance Company, Lloyd’s of London, Liberty Surplus Insurance, Aspen Insurance and Interstate Fire & Casualty for dolphin damage? On 8/27/2017 at the Bellingham Shipping Terminal, a Foss tug boat collided with a mooring dolphin causing it to fall over. Because the Lummi Tribal government objected to the repairs, the U.S. Army Corps of Engineers would not issue the necessary permits. In 2019, the Lummi’s withdrew their objections and the permits were issued. Weather and the work window delayed in-water tasks that were ultimately completed in June 2021. Insurance carriers will pay $159,382, less the port’s $50,000 deductible. The final payment will be $109,382. (10466/Consent Agenda B) Approved 3-0
113. Authorize the executive director to renew the port’s liability and auto insurance coverage? The coverage includes excess liability including terrorism; for the airport it includes terrorism ($100 million) and war ($50 million). The premium from 10/1/2021 through 9/30/2022 will be $258,247 or a 24 percent increase over the previous year. The 2020-2021 premium was $210,289. Alliant Insurance Services of Newport Beach, California, will continue to serve as the broker of record. (10467/Consent Agenda C) Approved 3-0
114. Authorize the executive director to sign a settlement agreement with Anchor QEA for partial funding of construction costs of the Maple Street bulkhead repair project? The agreement with Anchor QEA provides for payment of up to one-third of the total actual construction cost of the project, in an amount not to exceed $50,000. One-third of the project cost will be paid by Anchor QEA, one-third by the state of Washington and one-third by the Port of Bellingham. Anchor QEA was the contractor for the Whatcom Waterway phase 1 cleanup project. Installation of the Maple Street Bulkhead, located within the C Street Marine Terminal, was completed as part of the phase 1 cleanup. Anchor QEA’s services for the project included permitting, design and construction management support. After construction was completed in 2016, groundwater was observed to be seeping from the bulkhead tieback penetration locations. The Port of Bellingham completed a repair in 2017 to eliminate the observed seeping. Additional leaking was subsequently observed in 2019, at which time the port engaged Anchor QEA and KPFF to develop repair recommendations and share in the capital construction costs for the 2021 repair. The executive director will sign a small works contract with Combined Construction of Mukilteo in the amount of $104,557 to complete repairs at 33 tieback penetration locations. (10468/Consent Agenda D) Approved 3-0
115. Renew a lease with Pacific Cruises Northwest Inc. d/b/a San Juan Cruises? Pacific Cruises Northwest has been operating out of the Bellingham Cruise Terminal since June 18, 1991. This renewal provides for a five-year extension ending on 10/31/2026. The five-year rent will be approximately $93,000, plus moorage fees and passenger facility charges. (10470/Consent Agenda F) Approved 3-0
116. Authorize the executive director to sign a revised project memorandum and estoppel certificate for Harcourt’s waterfront residential project? At the 8/9/2021 meeting, vote #101, the commission authorized the executive director to sign an amended development agreement with Harcourt Bellingham. The amended agreement reduced Harcourt’s exclusive right to develop property within the downtown waterfront site from 18.8 acres to 7.7 acres; requires Harcourt to provide detailed financial assurances prior to transferring any property to Harcourt; and revises the project approval process with multiple Port Commission approval steps prior to transfer of property to Harcourt. The commercial lender (Parkview Financial of Los Angles, Calif.) requested the estoppel certificate along with the updated project memorandum, and, in the event of a default by Harcourt, any successor will be required to complete the project in accordance with commission-approved project memorandum. (10471/Action Item 1) Approved 3-0
117. Award the low bid of $180,967 to Skycorp, Ltd. of Arlington to dispose of contaminated stockpiled soils, demolish a concrete wall restricting terminal area access, and construct a shallow earthen stormwater berm? A concrete wall and soil stockpile along the north boundary of the terminal area is restricting access between adjacent leaseholds and the terminal, as well as occupying potential work areas within the terminal. The stockpiled soils were tested in 2018 and determined to contain high lead concentrations. Soil was subsequently tested in 2021, when it was determined that stockpiled soils should be disposed of at an approved landfill. Nine bids were received: the high bid was $297,505. A contingency fee of $18,097 brings the total contract to $199,064. (10472/Action Item 2) Approved 3-0
