MINUTES OF THE PORT OF BELLINGHAM COMMISSION MEETING HELD TUESDAY, JUNE 17, 2014 HARBOR CENTER BUILDING CONFERENCE ROOM 1801 ROEDER AVENUE, BELLINGHAM, WASHINGTON Present: Commissioners: Michael McAuley Dan Robbins Jim Jorgensen Staff: Rob Fix Executive Director Daniel Zenk Aviation Director Mike Stoner Environmental Programs Director Fred Seeger Facilities Director Tamara Sobjack Finance Director Elizabeth Monahan Human Resources Director Dan Stahl Maritime Director Sylvia Goodwin Planning and Development Director Shirley McFearin Real Estate Director John Hergesheimer Senior Project Engineer John Michener Economic Development Specialist Frank Chmelik Port Counsel Diane McClain Executive Secretary CALL PUBLIC MEETING TO ORDER Commissioner McAuley called the meeting to order at 3:00 p.m. PUBLIC COMMENT PERIOD No one signed up for public comment. CONSENT AGENDA Motion: To adopt Consent Agenda items A through C: A. Approve the minutes of the May 29, 2014, Special Commission meeting and the June 3, 2014, regularly scheduled Commission meeting. B. Approve a Supplemental Lease Agreement between the Port of Bellingham and the Government (USCG). C. Approve the Consent to Assignment of Lease from Bellhaven Inc. - Bellhaven Yacht Sales & Charters Inc. Motion approved with a 3-0 vote.
Page 2 PRESENTATIONS 1. Annual Audit Exit Conference Audit Manager Andy Asbjornsen and Audit Lead Elizabeth Corcoran from the Washington State Auditor s office explained that the purpose of the exit conference is to share results of the completed independent 2013 audit and provide a forum for an open discussion. The Accountability Audit examined areas involving disbursements, credit cards, fuel cards, payroll and benefits, overtime and leave accruals, without any findings. There were no uncorrected or material misstatements, significant deficiencies in internal control overfinancial reporting or any instances of noncompliance identified during the audit of the Financial Statements. Both the Federal Grant Compliance Audit (Airport Improvement Program compliance and internal controls) and the audit of Passenger Facility Charges program resulted in zero findings. The recommendations for management s consideration, not referenced in the audit report pertain to strengthening the internal controls for tracking fuel purchase and use of fuel cards. Mr. Asbjornsen reported that as in the year prior, this was a very clean audit; the Comprehensive Annual Financial Report (CAFR) would be issued and published on the State s website. Port Finance Director Tamara Sobjack added that the CAFR will also be posted on the Port s website. The 2015 audit will cover the same general areas and is estimated to cost $36,000. 2. Update Weldcraft Draft Remedial Investigation Feasibility Study (RI/FS) Environmental Programs Director Mike Stoner explained that the purpose of the Remedial Investigation (RI) is to define the nature and extent of contamination at the site, while the purpose of the Feasibility Study (FS) is to determine what to do about it. The Weldcraft Steel & Marine site in Squalicum Harbor (in operation from 1946 to 2000) is now operated by Seaview North and is one of several cleanup sites identified by the Department of Ecology. The RI/FS was performed under a 2003 Agreed Order with Ecology. A 30 day Public comment and review period is anticipated to begin July 28, 2014. Interim action in 2004 included the removal of creosote timbers and contaminated marine sediment, addressed habitat mitigation and site redevelopment. Mr. Stoner provided an analysis of the 4 FS alternatives. The preferred alternative estimated at $610,000 would identify the weak points in the paved areas, include a phased design approach, and include some excavation and treatment of petroleum-contaminated soils. The cleanup recommends saving the foundation and slabs of three existing buildings to serve as environmental caps and work pads for Seaview. The most aggressive and most expensive alternative is estimated at $2.9 million for full removal of contaminants. The next steps include preparing the Cleanup Action Plan and Consent Decree for public review and comment at the end of July. ACTION ITEMS 1. BID AWARD FOR THE MULTIPLE UTILITY IMPROVEMENT PROJECTS 2014.
Page 3 Motion: Authorize the Executive Director to execute a contract with Strider Construction Company for the Multiple Utility Improvement Project 2014 in the amount of $800,212.19, plus a contingency of $99,022.00 for a total authorized contract amount of $899,234.19. Also, amend the 2014 Capital Improvement Budget as follows: For Bid schedule A: Alderwood Stormwater Detention Pond Improvements: combine Budget 2014 line items 66 and 247 for a single budget line item in the amount of $301,095. For Bid Schedule B: Mitchell Way Force Main replacement: establish a new budget in the amount of $175,000. For Bid Schedule C: C Street Sanitary Sewer Service Replacements: establish a new budget in the amount of $44,000. For Bid Schedule D: Fairhaven Marine Industrial Park water Main Replacement, Phase 2: combine budget line items 150, 151 & 152 and increase the total by $242, 963. For a single budget line item in the amount of $940,000. Discussion: Senior Project Engineer John Hergesheimer explained that the proposed action is a compilation of 4 separate projects consisting of similar type work. The Multiple Utility Improvement Project was advertised through an RFP process and Strider Construction Co., Inc. was selected as the lowest responsive and responsible bidder to perform the scope of work advertised. 2. AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT FOR THE FAIRHAVEN MARINE INDUSTRIAL PARK WATER MAIN REPLACEMENT- PHASE 2 PROJECT. Motion: Authorize the Executive Director to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Associated Project Consultants, Inc., for the Fairhaven Marine Industrial Park (FMIP) Water Main Replacement Project- Phase 2 in the amount of $82,300 plus a contingency of $8,230 for a total revised authorized contract amount of $194,605. Discussion: Senior Project Engineer John Hergesheimer explained that the Port entered into a Professional Services Agreement (PSA) with Associated Project Consultants, Inc. in 2013 to provide technical, design and permitting support for Phase 1 & 2 of the Fairhaven Marine Industrial Park (FMIP) Water Main Replacement Project. The scope of work included proposed amendment will cover the cost of construction management, field testing, monitoring, and geotechnical, boatyard paving repair inspections and soil analysis on the site. 3. MODIFICATION OF AMERICAN NETTINGS AND FABRICS INC. LOAN WITH THE PORT OF BELLINGHAM ECONOMIC DEVELOPMENT AGENCY (EDA) REVOLVING LOAN FUND.
Page 4 Motion: Authorize the Executive Director to execute document(s) required to modify the terms of American Nettings and Fabrics Inc. loan through the Port s EDA Revolving Loan Fund program. Discussion: Economic Development Specialist John Michener explained that with the help of the Port s Economic Development Agency (EDA) Revolving Loan Fund program, since 2011, American Nettings and Fabrics Inc. has expanded and added 6 full time positions. The proposed loan modification will allow American Nettings to obtain a line of credit from their commercial lender, contingent upon the EDA Loan Fund moving from first to second position on the company s domestic accounts receivable. 4. THIRD AMENDMENT TO THE AMENDED AND RESTATED CAPITAL GROUND LEASE WITH BELLWETHER GATE D, LLC Motion: Approve the Third Amendment to the Amended and Restated Capital Ground leasewith Bellwether Gate D LLC. Discussion: Real Estate Director Shirley McFearin reported that the proposed amendment for the extension of the $30,000 payment due April 1, 2014, to December 31, 2014, is due to economic factors and market conditions affecting Bellwether Gate D LLC. Commissioner McAuley expressed concern and asked that the Commission consider future requests for extensions with caution. NEW BUSINESS 1. Whatcom Business Alliance (WBA) Commissioners Robbins and Jorgensen thanked staff for participating in the recent WBA Airport and Waterfront tour/luncheon successful event. 2. Schultz Way - Commissioner McAuley asked about Schultz Way section of road located off Roeder Avenue and Seaview Avenue and in front of Mt. Baker Plywood. Commissioner McAuley spoke with Mayor Linville and has become aware that a petition is being formulated regarding the poor condition of that road. Executive Director Rob Fix reported that a petition of approximately 30 signatures was just received by the Port; dropped off at the front desk. Staff will distribute the petition to the Commission and prepare a response. 3. Airport Annexation - Commissioner McAuley asked about the status of the City plans to annex the Airport. Staff will prepare an update to the Commission. 4. Blaine Pier Road Commissioner Jorgensen asked about the status of repairs to the Blaine end pier road. Executive Director Rob Fix reported discussion with Blaine and engineering study ongoing.
Page 5 5. Weblocker status Commissioner Robbins asked about the status of the weblockers and in particular, availability. Maritime Director Dan Stahl reported staff continues to proceed with implementing procedures with regard to derelict debris and experiencing some difficulties in contacting responsible parties during the busy fishing season. ADJOURN With no further business, the meeting was adjourned at approximately 4:03 p.m. Michael McAuley, President Jim Jorgensen, Secretary