Compiled by Bill McCallum
Action Taken at January 10, 2023 Meeting
Shall the commission:
1. Authorize the executive director to sign documents with Lexington Insurance Company for December 2021 storm damage? Prolonged cold caused pipes to burst at the airport terminal and other port facilities. The total repair cost was $94,826, and with a $50,000 deductible, the insurance payment will be $44,826. (12361/Consent Agenda C) Approved 3-0
2. Approve lease modifications with rental car agencies operating at the Bellingham airport? The modifications are with Avis and Budget Rent a Car; EAN Holdings (Enterprise) and the Hertz Corporation. Office and counter space rent is expected to generate $415,980, a minimum guarantee of approximately $2,815,000 for a total annual revenue of $3,230,980. The leases expire on 12/31/2027. (12362/Consent Agenda D) Approved 3-0
3. Declare an emergency to allow immediate execution of contracts to repair damage at the Bellingham airport? On December 22, 2022, cold temperatures resulted in two water lines breaking and impacting Halibut Henry’s and Southwest Airlines. The insurance carrier, Alliant, recommended ATI Restoration of Anaheim, California for emergency water damage mitigation. The total estimated cost has not been determined. Other contractors will do restoration and replacement work. (12363/Consent Agenda E) Approved 3-0
4. Authorize the executive director to sign a contract with the state Community Economic Revitalization Board to accept federal, state and local funds for the rural broadband project? The project will construct approximately 47.5 miles of fiber located north of Lynden and along the Canadian border; the fiber will pass approximately 450 homes. The Whatcom County Economic Development Investment Board awarded a $1 million grant to the broadband project and the state a $2 million grant. (12364/Concent Agenda F) Approved 3-0
5. Authorize the port’s legal counsel to sign contracts up to a total of $157,170 with Anchor QEA of Seattle (to support Chmelik Sitkin & Davis) and other consultants to provide technical expertise in support of legal work related to the environmental department? Since 1996, legal counsel, in conjunction with the port’s environmental department, manages the claims process with AIG for the port’s cost cap insurance policy, cost recovery efforts involving former tenants and historical insurance, grant funding programs, and negotiations with the state of Washington concerning agreed orders and consent decrees for the port’s 20 state-listed Model Toxics Control Act sites. Anchor QEA has provided the bulk of technical-legal support for these legal efforts. The contract expires on 12/31/2023. (12365/Consent Agenda G) Approved 3-0
6. Authorize the executive director to sign all documents necessary for change of ownership from Cohanim Bellwether LLC for Building A, B and C to the Whatcom Education Credit Union? At the 7/17/2008 meeting, vote #92, the commission approved plans and specifications for Bellwether Gate LLC. It was amended at the 3/3/2009 meeting, vote # 44; and the 3/17/2009 Meeting, vote #49 and five times in 2015 with Cohanim Bellwether LLC. (12366/Consent Agenda H) Approved 3-0
7. Authorize the executive director to sign a lease (modification #2) with NW Explorations? At the 9/20/2022 meeting, vote #112, a lease was approved with NW Explorations for premises located at the Marina Square building and Squalicum Esplanade. NW Exploration is a yacht company that offers private charters, guided flotillas, yacht sales, maintenance/repairs and a brokerage department. At the 7/6/2004 meeting, vote #68, a lease with Grand Yachts was transferred to NW Explorations. This modification will revise a payment plan for past due rent, moorage rent, current rent, additional rent, finance charges and state leaseholder tax. NW Explorations has until 9/30/2023 to pay $233,949 in past due amounts. (12367/Consent Agenda I) Approved 3-0
8. Authorize the executive director to sign settlement agreements with Bornstein Seafoods and the City of Bellingham for resolution of remediation costs at the I&J Waterway cleanup site? In 1995, contamination was identified at the three-acre site located between Hilton Avenue and Bellwether Way. In 2004, the state of Washington identified the Port of Bellingham and Bornstein Seafoods as potentially liable parties. Since 2005, a series of investigations has addressed contamination. In 2019, the state finalized a cleanup plan with an estimated cost of $20,300,000. In 2021, the port filed a lawsuit against Bornstein Seafoods to recover costs associated with the cleanup — an amended lawsuit was filed by Bornstein Seafoods against the City of Bellingham to recover costs associated with the cleanup. Rather than pursue litigation, the port, Bornstein Seafoods and City of Bellingham have negotiated settlements. This settlement agreement includes a $9,500,000 payment from Bornstein Seafoods to the port. (12371/Action Item 1) Approved 3-0
9. Authorize the executive director to sign the application for the Green Marine program? The goal of Green Marine is to improve the marine industry’s environmental performance in concrete, measurable terms. To reduce the marine industry’s environmental footprint and pollution potential and strengthen environmental performance. Other local members are Seattle, Anacortes, Everett and Vancouver, British Columbia. (12372/Action Item 2) Approved 3-0
10. Amend administrative powers and duties delegated to the executive director? The commission approved Resolution 1106-Y at the 1/4/2022 meeting, vote #10 and Resolution 1106-Y(i) at the 2/1/2022 meeting, vote #20. This vote modifies, clarifies and adds administrative powers and duties to the executive director position. The powers and duties expire on 1/31/2024. 12373/Consent Agenda B (Resolution 1106-Z) Approved 3-0
Action Taken at January 24, 2023 Meeting
Shall the commission:
11. Authorize the executive director to sign a $350,337 one-year contract (amendment #7) with 5 Star Services of Sedro-Woolley for janitorial services? The contract was initially approved at the 1/7/2020 meeting, vote #4. Five Star will provide janitorial services at 28 port facilities: all the port facilities except the airport. This amendment includes additional on-call service for the Bellingham Shipping Terminal, restrooms and trailers near the pump track and Fisherman’s Pavilion. This amendment brings the total contract to $1,364,643; it runs from 1/31/2023 through 1/31/2024. (12392/Consent Agenda B) Approved 3-0
12. Authorize the executive director to sign a $78,291 contract (amendment #2) with Makers Architecture and Urban Design of Seattle for phase 2 of the former Georgia-Pacific treatment lagoon project? The port is referring to the project as the Waterfront District Marine Trades Area Master Plan. The chlor-alkali plant discharged mercury-containing wastewater into the lagoon. It was called the aerated stabilization basin from 1979 to 2001, when it closed. Since 2008, the port has been using the 29-acre lagoon and pipeline system to manage stormwater and industrial process water. Originally, the port planned on turning the lagoon into a marina. The plan to turn the basin into a marina has been abandoned. At the 11/2/2021 meeting, vote #123, the commission passed Resolution 1397, supporting multiple marine trade industry uses for the lagoon. Phase 2 will facilitate a couple of MTA land-use framework charrettes. Phase 3 is contingent upon further budget appropriation and commission approval. The total amended contract is $149,510. (12393/Consent Agenda C) Approved 3-0
13. Authorize the executive director to permit Harcourt Bellingham to proceed with Projects 5 and 6? At the 10/19/2021 meeting, vote #116, the commission authorized the executive director to sign an amended development agreement with Harcourt. The amended agreement reduced Harcourt’s exclusive right to develop property within the downtown waterfront site from 18.8 acres to 7.7 acres; and requires Harcourt to provide detailed financial assurances prior to transferring any property to Harcourt. Projects 5 and 6 will be a total of 162,500 square feet. The two, six-story mixed-use buildings will be constructed over a parking garage, with space for 96 cars and 85 bikes. The projects are along non-arterial roads currently called “Maple Loop” and “Digester Way.” The projects are a mix of 11,000 square feet of commercial and retail space on the ground floor; the upper floors will have approximately 148 residential units of three, two and one bedrooms and studio units. No affordable housing units are proposed as part of this concept. (12394/Action Item 1) Approved 3-0
