Port of Bellingham Commission

Action Taken at August 13, 2024 Meeting

Shall the commission:

62. Reallocate $173,000 for the central maintenance facility? The 2024 budget has $198,000 for wash bay improvements. Approximately $25,000 in preliminary work has been spent on the project. It has been determined that the shop needs to be moved so work has been halted. The remaining $173,000 will be spent on a needs assessment and relocations options for the maintenance staff, shop, equipment, vehicles, and storage yard. (13954/Consent Agenda B) Approved 3-0

63. Authorize the executive director to accept and administer a $1,021,747 federal grant for a barge ramp at the Bellingham Shipping Terminal? In 2021, the federal government (U.S. Department of Transportation) designated the Port of Bellingham as part of the U.S. Marine Highway. The port is working with the Port of San Diego to bring a barging program between southern California and Washington state. The grant funds will be used for the design and construction of a 70-foot barge ramp to attract new cargo customers. The scheduled completion date for construction of the barge ramp is 3/31/2026 and the start date for Marine Highway service is 12/31/2026. (13955/Consent Agenda C) Approved 3-0

64. Authorize the executive director to sign a $31,000 agreement with the Public Health Institute of Oakland, California, for an AmeriCorps Fellow? The fellow will work during 2025 and 2026 with the port, City of Bellingham and Whatcom County and local tribes to develop to identify information gaps in vulnerabilities to natural hazards (storms, floods, earthquakes and tsunamis) and climate change (sea level rise, extreme heat and wildfires). (13956/Consent Agenda D) Approved 3-0

65. Authorize the sale of five vessels for the nonpayment of moorage fees? An auction was held on September 23 for a 32-foot sailboat with minimum bid of $4,821, a 27-foot sailboat with minimum bid of $3,472, a 28-foot sailboat with minimum bid of $3,852, a 32-foot cruiser with minimum bid of $4,611, and a 1975 sailboat with minimum bid of $2,199. Port staff contacted the five owners by email, phone and mail a total of 83 times about the unpaid fees. (13650/Consent Agenda F) Approved 3-0

66. Authorize the executive director to sign an initial offer of financial aid with the state Community Economic Revitalization Board (CERB)? The port applied for and received a $72,000 grant from CERB to do an economic development strategy study in Port Roberts. The port is required to provide an $18,000 match for a total of $90,000. Community members in Port Roberts approached the port about doing an economic development study. Point Roberts has international border issues that have hindered its recovery after Covid-19. The study would make recommendations in areas of business diversification, infrastructure and the workforce. (13960/Consent Agenda H) Approved 3-0

67. Reallocate $20,000 for building 3 at the Marine Drive Industrial Park? The 2024 budget allocated $79,000 for the installation of sewer and water at buildings 9 and 10 at the Marine Drive Industrial Park. A $20,000 portion of the $79,000 will be reallocated to install water in two shops at building 3 in the Marine Drive Industrial Park. (13961/Consent Agenda I) Approved 3-0

68. Approve a lease with Financial Plan Inc. for suite 301 in the Bellwether building? The lease is for five years with three consecutive five-year renewal periods. The suite 301 is 8,100 square feet and will provide financial planning services. The rent for the first three months free, the monthly rent will increase from $12,636 to $14,222 for a five-year total of $744,113. (13962/Consent Agenda J) Approved 3-0

69. Reallocate $50,000 to the Blaine Marine Tank Farm and add $300,000 for Marine Services Northwest? The 2024 Sea-K Fish cleanup budget decreased by $50,000 from $2,673,965 to $2,623,965. The Blaine Marine Tank Farm budget will increase from $180,743 to $230,743. The $300,000 will initiate sediment investigation work at Marine Northwest Services and coordinate cleanup action with the inner Squalicum Harbor renovation project. (13965/Consent Agenda L) Approved 3-0

70. Authorize the executive director to accept a $514,955 federal pass-through grant for a diesel engine upgrade program? The Environmental Protection Agency grant will be used to develop a local Whatcom Marine Vessel Diesel Engine Upgrade Program (DERA). It will assist commercial vessel owners with diesel engine upgrades, reducing greenhouse gases and diesel particulate matter. The program is a cooperative effort with the Whatcom Working Waterfront Coalition. (13967/Consent Agenda M) Approved 3-0

71. Increase the 2024 budget by $161,368 to remove and decontaminate aqueous film forming foam from two trucks and purchase fluorine free foam? The executive director is authorized to sign a $114,906 cleaning contract with TRS Group of Longview to remove per- and polyfluoroalkyl subscrances (PFAS) from two airport rescue and firefighting vehicles. The total cleanup costs including water sampling and waste disposal are $132,052 with a 5 percent contingency. The total for Solberg fluorine-free form is $29,332. At the 5/17/2022 meeting, vote #63, the commission ratified an emergency contract to dispose of aqueous film forming foam in three firefighting trucks. Clean Harbors of Norwell, Mass., was selected to perform the work. (13968/Consent Agenda N) Approved 3-0

72. Approve a new land lease with BCS Operations (dba Bellingham Cold Storage)? The current lease does not expire until 2040, but BCS has requested a new 50-year lease, which will allow it to invest $30 million over the next 19 years in its cold storage and seafood businesses. Base rent in the first year will be $385,616 with a 4 percent annual increase through 2029 an and annual CPI adjustment beginning in 2030. The lease commences on 9/1/2024 and expires on 8/31/2074. (13971/Action Item 1) Approved 3-0

73. Authorize the executive director to sign a settlement agreement with the City of Bellingham related to the R.G. Haley cleanup site? The site is located at the southern end of Cornwall Avenue. At the 9/14/2009 meeting, vote #193, the City Council authorized the mayor to spend $1.00 to purchase the site commonly known as the R.G. Haley property (1) from the Douglas Management Company. It is a Model Toxics Control Act cleanup site. Prior to 2009, the property was owned by: Bellingham Bay Improvement Company (1887-1912); Bellingham Bay Lumber Company (1912-1913); Bloedel Donovan Lumber Company (1913-1947) (all of which operated lumber mills); the Port of Bellingham, which leased portions of the site to the International Cross Arm Co. (1947-1955); R.G. Haley (1955-1990) and the Douglas Management Company (1990 to 2009). The port was named by the state as a potentially liable party with a responsibility to address site contamination. The City of Bellingham negotiated a settlement that includes a $3,500,000 payment by the port to the city with four payments between December 31, 2024 and December 31, 2027. The city agrees to perform all future remedial actions at the site. (13972/Action Item 2) Approved 3-0

74. Authorize the executive director to sign an agreement with the City of Bellingham for the management of remedial actions for the Cornwall Avenue landfill cleanup? From the mid-1800s to the mid-1900s, this site was used for lumber, coal and wharf operations. A remedial investigation/feasibility study conducted in 2016 found petroleum hydrocarbons, pentachlorophenol (PCP), polycyclic aromatic hydrocarbons (PAHs), and dioxins/furans. Other contaminants include mercury from the Whatcom Waterway site and phthalates, metals and polychlorinated biphenyls from the Cornwall Avenue landfill site. In this agreement, the port transfers operational control to the city and the city assumes responsibility for conducting and managing remedial actions. (13973/Action Item 3) Approved 3-0

75. Authorize the executive director to sign a $99,936 contract with Conflux Associates of Bellingham produce a strategic communications campaign? The port has received a lot of negative publicity in recent months as a result of the noise generated by the ABC Recycling scrap metal pile and their proposal to construct a metal shredder on Marine Drive. The owner of Conflux writes in its proposal for a strategic communications campaign plan, “It pains me to see [the] Port of Bellingham take such a reputational beating. And it is not deserved.” The proposal continues, “The … plan aims to win over opinionmakers [sic] and the public, making a compelling case for the critical role and the competence of the Port and its staff.” The three-year proposal for $298,188 was drastically curtailed. The termination date of the contract is 8/31/2025. (13975/Consent Agenda G) Approved 3-0

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