Port Of Bellingham

Key discussions included action items such as proposed tariff adjustments for 2025 concerning Islander parking permits, and a proposed amendment to Airport Rules and Regulations mandating security training and badges for all GA tenants following security discrepancies identified during a TSA inspection. The committee recommended both proposals for commission approval. Applicant reviews for open positions were conducted, resulting in the acceptance of one application and tabling of others pending clarification of open positions. An airport update covered completed solar panel installation and ongoing LED lighting upgrades. Passenger enplanement data was reviewed, noting a recent drop following Southwest Airlines' departure, alongside a 2025 forecast. A significant portion of the meeting addressed the FAA's initiative to transition to unleaded fuel by 2030, covering supply chain challenges and fuel availability. New business involved follow-up actions regarding a noise abatement procedure letter and planning for FIFA 2026 impacts.

The meeting began with roll call and a review of the public comment process, which includes two periods and time limits for speakers. Public comments addressed topics such as revisiting innovation districts, the House Bill 1923 Mosquito Fleet Act concerning inter-island service, and concerns regarding the proper handling and disposal of surplus equipment. Public comments also touched upon financial matters, including concerns over misappropriated funds and the closure of the Fair Haven Shipyard. The consent agenda items A through G were approved without comments from Commissioners James or Brisco. A primary action item involved authorizing an amendment to the 2026 strategic budget, reallocating $1,100,000 from the Harris Avenue Shipyard Cleanup Project to the Bellingham Shipping Terminal Dredging Project due to cost overruns and change orders discovered during construction. Separately, authorization was sought for a $2,300,000 settlement agreement for the Merit Marine Services Northwest Environmental Remediation Site, related to contaminants like tributyltin from historical boat bottom painting operations. Discussions on the dredging project highlighted its complexity, noting its total cost approaches $30 million, with further multi-million dollar investments anticipated for the rail spur modernization.

The meeting began with a roll call confirming all three Commissioners were present. Discussion covered announcements regarding advisory committees, including rescheduled dates for the Bay Area and Attack committees, and noting the Marine Advisory taking the summer off. Following public comment, the consent agenda items A through H were moved for approval, with specific questions raised regarding item B (vessel seizure for non-payment) and item F (Elite Airways retroactive agreement). Regarding vessel seizure, clarification was provided that the Port can seize a vessel after 90 days past due, with a 90-day period before auction allowed by law. Regarding Elite Airways, it was confirmed that prior permission was obtained for their flights, which operate as irregular charter service to destinations like Laughlin and Wendover, Nevada, and the retroactive nature was due to short notice. A significant portion of the discussion involved Commissioner concerns about the process for approving food trucks, particularly in the Blaine area, focusing on fairness to existing brick-and-mortar businesses, leading to a review of past analysis recommending locations away from direct competition. The main action item involved authorizing the Executive Director to execute Amendment Number One to the Western Crossing Memorandum of Understanding (MOU) regarding the relocation of the Western Crossing site, which was previously hampered by road realignment plans and Harcourt's interest in the Board Mill site. The proposed new site is a six-acre parcel. The Board approved the amendment, contingent on further actions, including approval from the Western Washington University Board of Trustees and amendments to the Harcourt Master Development Agreement, with a final deadline for Western Crossing to submit its University Development Plan set for June 30, 2018.

The meeting commenced with an executive session which was subsequently closed to reconvene the public meeting. The agenda included the approval of two consent items (A and B). A legislative report was presented, summarizing the 2015 legislative session and previewing the 2016 session, emphasizing the impact of the McCleary Court decision concerning basic education funding and the tight margins of control in the Senate and House. Budget discussions covered the operating budget, noting a significant increase funded largely by revenue growth, and the capital budget, which included funds for Bellingham waterfront cleanup efforts that are currently uncertain due to lower-than-expected projected revenue from the Model Toxic Control Act (MATCA) funds. A major development was the passage of a $16 billion transportation revenue package, primarily funded by a gas tax increase, which allocated funds to projects such as the Slater Road interchange and the I-5 Blaine extension, and also included funding for alternative transportation options. Legislative highlights included the passage of a Marine Tourism bill providing permit requirement exemptions for out-of-state boat repairs, extension of aluminum tax incentives, funding for ferry construction and operations, and allocation for the Aquatic and Invasive Species study. Negative developments included sweeps from the Public Works Assistance Account due to insufficient general fund money. Discussions also covered the Oil Train Safety Bill (ESHB 1449), which increases UTC fees against rail revenue to fund local government emergency preparedness grants, and an adjustment to per diem rates for port commissioners to align with inflation. Finally, there was discussion regarding port involvement in state transportation budget discussions.

The meeting included announcements of upcoming committee meetings, including the Marina Advisory Committee and Technical at Airport Advisory Committee meetings. A significant portion of the discussion revolved around the broadband expansion strategy, involving engagement with the USDA, federal delegates, and the governor's broadband office to secure funding for future phases. The commission addressed quiet zone progress for railroad crossings, detailing the status of several specific crossings (Alaska Ferry, Harris Avenue, F M I P private crossing, and Boulevard Park crossing), and the required coordination with BNSF for quad gate proposals. Financial reports for January through June showed revenue challenges compared to the previous year, primarily due to fewer cleanup/insurance payments, although operating revenues exceeded 2018 numbers but were below budget. Aviation revenues were down, but expenses were also under budget. The shipping terminal showed improvement with revenues increasing from the prior year. Safety reports indicated two minor injuries with no lost time. Stormwater sampler results at the airport were within permit limits, though two locations at the shipping terminal exceeded copper limits. Open claims, including a 2016 windstorm claim, were discussed. A public hearing was held regarding the intent to surplus the former Humane Society building, occupied by Puget Hound LLC (doing business as Rover Stayover Inc.), including discussions on the associated land parcel size and the need to amend the Comprehensive Scheme of Harbor Improvements.