Commissioners Present: Benye Weber, Bruce Bryson and Ann McDonald.

Others Present: Jim Patton (Executive Director), Laura Blankenship (Port Comprehensive Plan Editor-in-Chief), Nathan Whalen (Whidbey News-Times), Amber O'Brien (Edwards & Associates), Tom Baenen (GFMG Treasurer), Karen Hutchinson (GFMG President), Jan Graham (Harbor Café owner), Sue Koleada & Joan Geiger (Corroseal owners), Alice Sterling & Rick Castellano (Coupeville Historical Waterfront Association)

Call to order: The regular meeting was called to order at 10:35 am by Commissioner Weber in the Island County Commissioners Hearing Room located at #1 NE 6^th Street, Room B 102, Coupeville, WA.

APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING:

Weber stated that Minutes for the regular meetings of December 19, 2006 and January 10, 2007 and the Special meetings of January 23 & 25 2007 were available for approval and signatures.

1/10/2007 Minutes: Weber said that the 1/10/2007 minutes needed to be corrected. The first correction was on page 3, under GFMG Financials. October and November had been transposed and needed to be switched. The second correction was on page 2, paragraph 3. The words Penn Cove Mussel Festival needed to be amended to read Penn Cove Water Festival. There were no further corrections to the 1/10/2007 minutes.

ACTION: A motion was made by Weber and seconded by Bryson to approve the January 10, 2007 regular meeting Minutes as corrected. The motion passed unanimously.

The Board agreed to table approval of the December 19, 2006 meeting Minutes until the next regular Port meeting because all the Commissioners had not had the opportunity to read them.

ACTION: A motion was made by Weber and seconded by Bryson to approve the January 23 & 25, 2007 special meeting Minutes. The motion passed unanimously.

SPECIAL PRESENTATIONS:

Front Street Merchants Activities: (Mary Alice Sterling and Rick Castellano)

Sterling and Castellano represented the Coupeville Historic Waterfront Association, which is an association of business and home owners in the historic district of Coupeville. Their focus is on Coupeville's historic assets and unique architecture as a catalyst for economic growth and community pride. Mary and Rick are the point people for an event called Wharf Fest. Wharf Fest will be a celebration of one of Coupeville's most valuable and obvious links to the sea, the Coupeville Wharf. The event is scheduled for June 23-24, 2007 and at this time they have confirmation of six vintage steam powered vessels and one antique sailing vessel that have agreed to moor in Coupeville during the event. They would like approval from the Port to waive the moorage fee for the vessels that are participating in the festival. The owners are bringing their boats to Coupeville at their own expense. Bryson said that the event seems like an event that would draw a lot of people to Coupeville. Weber agreed that the event would be a benefit to all of Coupeville during a time of year that is not normally busy. She said that the Port's mission is to stimulate economic development and celebrating its historic waterfront wharf would be in line with that mission.

ACTION: A motion was made by Weber and seconded by McDonald to honor the request made by Sterling and Castellano to waive the mooring fee for seven boats that are participating in this activity.

The Board asked Sterling to notify them of any additional boats wanting to participate in the event. Bryson asked that the Board also be kept appraised of the event and be given a schedule. McDonald said that it was her understanding that the Port must charge a minimum mooring fee of $1.00 per day? Weber said that Port had extended the $1.00 per day moorage rate to the Dragon Boat Club because they are using the wharf for an extended period of time. This new group of Front Street merchants is planning this event to create economic development opportunities in Coupeville and the event will only be held on one weekend. The Board instructed Patton to notify the wharf tenants of the festival.

The motion passed unanimously.

McDonald said that she hopes that there are provisions for this activity that restrict bringing in outside food and drink so that people will be spending their money at Coupeville businesses. Sterling said that Long Bechard and Jan Graham were both members of the association. The association does not want the event to compete with any of the local businesses.

MEETING OPEN TO PUBLIC INPUT:

There were no public comments.

CLOSURE OF PUBLIC INPUT: Weber closed the meeting to public input and invited the public to stay for the remainder of the regular public meeting.

UNFINISHED BUSINESS:

Port Executive Director's Report: (Patton)

Status of the Corroseal Lease: Patton said that the Board had two letters in their folders regarding the Corroseal lease. One letter was sent to the Board from Joan Geiger and Sue Koleada on January 20, 2007 regarding their desire to terminate the existing lease sooner than its expiration date of June 30, 2007. The second letter was the response Patton had prepared dated January 29, 2007 that stated that Geiger and Koleada would be responsible for complying with the terms of the lease, including the payment of rent and utilities, until the termination date of the lease, or until the lease is sooner terminated for the mutual convenience of them and the Port according to an agreement that would provide appropriate consideration for the Port.

Tenant's statement: Koleada said that Corroseal had two leases with the Port. The first lease was signed on December 1, 2002 and went through November 1, 2004. The second lease was not signed or negotiated until June 2004, so the business was operating without a lease for six months. Had the second lease been negotiated on time, it would have started on December 1, 2004 with a termination date of December 1, 2006. Koleada said that the Port was notified on November 7, 2006 that the business would be closed and that she and Geiger had found someone who agreed to assume their lease. That person was Long Bechard, owner of the Gallery Shop and a tenant on the wharf. Koleada felt that it was not their fault that the Port could not negotiate a lease assumption with Long Bechard. Koleada said that it is now the middle of February, 2007. She said that she is a single mom working for wages and Geiger is retired and cannot afford to pay the lease through June, 2007. They have paid the lease through the end of January, 2007 and are now asking to be let out of the remainder of the lease. Koleada said that she and Geiger are both active members of the community, her son is an honor role student at the Coupeville High school who volunteers for many activities and they are all around good people in the community. They want to continue to be active happy members of the community and feel that this is a very small request in view of their four years of good tenancy. Board response: Weber said that the Board heard their appeal that they are not liable or responsible for the payment of the lease through the June 30, 2007 termination date. Bryson said that the Port appreciates that they were good tenants and he understands the position that they are now in. Bechard had agreed to assume the existing lease but changed her mind after determining that she would be unable to find adequate staffing to cover her shop and the additional space. In essence, there is not anyone that will assume the lease. Bryson said that A lease is a lease and must be fulfilled unless there is some sort of extenuating circumstances. Bryson said that the Port may be able to come to a mutual agreement and possibly shorten the term of the lease. McDonald agreed with Bryson. She said that from a personal stand point she would love to be able to terminate the lease but from a business stand point feels that it would not be appropriate for that to happen. She also felt that the Port could possibly come up with some sort of compromise that would be more reasonable for both parties involved. Weber concurred with Bryson and McDonald.

ACTION: A motion was made by Weber and seconded by McDonald that the Port not recognize the appeal made by Koleada and Geiger to terminate the Corroseal lease as written. The Board would appoint Patton to work with Koleada and Geiger to work out an early termination of the lease with some type of financial compromise rather than the full amount of the lease that is owed. The motion passed unanimously

Patton said that the Port accountant would be sending a rent bill to Corroseal within the next few days. The balance of the lease after the February rent invoice is paid would be $1,732. Patton wanted to clarify that somewhere within that balance is the area that the Board would like him to negotiate. The Board concurred with the clarification. Patton pointed out that the letter from Corroseal stated that they agreed to forfeit their $350 security deposit. He said that the Port could not accept the $350 as a gratuitous forfeit. The only way that the Port could legally take that money is if Corroseal defaulted on the lease. The Board concurred. Koleada said that the lease was signed on June 1, 2004 with a termination date of June 30, 2006. The lease states that the term of the lease is a two year period but June 1, 2004 through June 30, 2006 is a two year and 30 day lease period, which is a conflict. Weber said that the Board was not in a position to discuss the legal verbiage of the lease and may need to seek legal council on the matter. McDonald suggested that Patton meet with Koleada and Geiger to see if an agreement can be reached prior to the Port spending money on legal council. The Board concurred.

Boating and fueling activity: Patton said that as anticipated for this time of year, there was not a lot of boating and fueling activity. In the month of January, $1,900 in fuel was sold and $215 was collected in moorage fees. Fuel sales practices: On a more important note, Patton said that he would like the Board to consider how the fuel sales are handled. There are two practices that need to be fixed. One has to do with selling fuel at a discount. The Port places a small mark-up on each gallon of fuel that is sold in order to pay the overhead costs of the fueling service to boaters, including insurance on the tanks, the electricity to run the pumps, calibration of the pumps, the Dock Hand's salary (at minimum wage June through August) and a portion of the Harbor Master's salary. It has been the practice of the Port to give a five cent per gallon discount on any fuel sales over 100 gallons and a ten cent per gallon discount on any fuel sale over 1,000 gallons. In 2006, the Port made 70 sales of over 100 gallons and 11 of those were sales of over 1000 gallons. Out of 446 sales, more than 15% were made at discounted prices. That reduced the mark up margin created to help pay the overhead costs. Patton said that even more troublesome was the fact that every time the Port received a fuel delivery, the price of fuel was changed - going up with higher costs and down with lower costs. When the price is lowered that automatically devalues all the fuel still remaining in the tanks. This practice has cut into the mark-up margin built into the fuel sales to help pay the overhead costs. Patton needs to come back to the Board with a proposal on changing the way fuel is sold. He requested guidance from the Board to determine how to prepare that proposal. Board response: Weber was very concerned with the current fuel sale situation. She said that the Port needs to have a cushion to help take care of various overhead costs. McDonald said that she would like to be able to not run off the customers and continue to provide a good service, but she agreed that the Port must make money on the fuel sales in order to pay for the overhead. Bryson concurred. Weber said that it was important to keep the same amount of mark up on the fuel regardless of what the Port has paid for it through each month to keep everything current on the Port's daily reports. Patton said that he would work up an official procedure about how to change the fuel practices and would report back at the March 14, 2007 regular Port meeting.

WSU Beach Watcher display at the Coupeville Wharf: Patton said he had forwarded an e-mail to the Board that addressed the $6,450 in funding that been given to the Beach Watchers by the Puget Sound Action Team for their wharf project. In order to facilitate the initial work on the displays at the wharf, the Board had agreed to pay for the construction of a wing wall. The wing wall was completed in 2006, within the amount for time and materials anticipated by the Port. The electrician was not able to provide the overhead lighting, wiring and sockets for the wing wall until recently. The $945 invoice for that electrical work has been submitted to the Board. The Port has an agreement in writing with the Beach Watchers that states that the Port is prepared to provide in kind support to their organization. Patton said that if you compare the cost of the wing wall to the $6,450 contribution from the Puget Sound Action Team, it is a significant contribution by the Port to the Beach Watchers on the basis of an in kind arrangement. Weber said that the Port has more than made its contribution to the Beach Watchers. In addition to the wing wall, the Port has allowed Patton to attend their Wharf Committee meetings, which is another form of in kind support. Weber was happy to see that the Puget Sound Action Team had given a grant to the Beach Watchers to complete the wharf project. She asked if the Beach Watchers had determined a projected completion date for the project. Patton was not aware of a projected completion date but said that the Beach Watchers have a sunset clause on the $6,450 grant from the Puget Sound Action Team of June 30, 2007. The project should be completed by that date. Patton mentioned that, as instructed by Weber, he had taken down the Penn Cove Water Festival framed posters for storage in a safe place until the Beach Watchers construction activity is completed at the Wharf.

Status of bids for strengthening the Port office basement: Patton said that the Port has received two good, valid bids for the strengthening of the Port office basement. He was still awaiting a bid from the Mukilteo firm that expressed interest in bidding the project. Patton requested that if the Mukilteo firm does not submit a bid in time for next month's Port meeting he be authorized to make recommendation to the Board based on two bids he has received. The Board had no objection to Patton's request.

Status of Greenbank Estuary Project: Patton said that the ball was in the court of the Greenbank Beach and Boat Club (GB&BC) because they own the private property that would be impinged on if the feasibility study requested by the Skagit River System Cooperative is undertaken. Patton had spoken with Sharon Dunn, President of the GB&BC, who said that they still do not have a determination from their members as to whether there is a consensus to support a feasibility study or not. They have prepared an explanatory brochure and ballot to be mailed to each of their members and are looking for a return on the ballot sometime in March, 2007. They may not make a decision in time for Patton to report at the next regular Port meeting on March 14, 2007. Weber asked if the ballots had a return by date printed on them. Patton said that he understood that the GB&BC Board had made a conscious decision not to place a return by date on the ballot because they did not want to press their membership on the issue. Patton will keep the Board informed on the issue.

Port representation on the Regional Transportation Policy Organization (RTPO): Patton said that all counties are required by the Growth Management Act to have a Regional Transportation Plan. If a county is under a certain number (approximately 100,000) in population, it is entitled to join with another county and create a Regional Transportation Plan on a two county basis. In 1996, Island County and Skagit County had done exactly that and the existing six-year Regional Transportation Plan is a dual plan that applies to both counties. Within each county, called sub-region, there is a controlling group and the representation on that controlling group is identified in the six year plan. There is only one representative position to cover the Ports in Island County. Patton obtained this information from the 1996 edition of the plan. He said that he requested a copy of the most recent Regional Transportation Plan from Island County Commissioner Mike Shelton's office but has not yet received it. However, Patton said, Commissioner Shelton agreed to sponsor McDonald at the last RTPO meeting and to arrange for her to become an official observer. McDonald said that at this point she is the non-official representative for the Port of Coupeville on the RTPO Board. She has a voice but not a vote. She asked Patton if the Anacortes and Skagit Counties each had a vote. Weber's comments: Weber answered for Patton and said that they do each have a vote and that is a function of population. The Port of Coupeville shares a position on the RTPO with the Port of South Whidbey and they have a hand shake agreement to switch off every two years. Weber pointed out that for the last six years, former Port of Coupeville Commissioner Ed Van Patton had served on the committee because the South Port evidently did not want the responsibility of attending the meetings. The Port of South Whidbey has now started attending the meetings and will continue to do so until their two year term is up. Weber would like the Port of South Whidbey to keep the Port of Coupeville appraised of the RTPO meetings and allow the Port of Coupeville representative to have input on any decisions being made. McDonald would still like Patton to pursue the issue. She will continue to attend future RTPO meetings.

Greenbank Farm Management Report: (Hutchinson)

Hutchinson said that the she and Baenen would both be reporting on the Greenbank Farm today. She pointed out that the GFMG monthly report had been revised. The report has been divided into three areas:
GFMG Operations
Leased Areas
Managed Areas

GFMG Operations

Admin

• February Board Meeting Thursday Feb 15th at JDH
• Staffing remains unchanged
• Working on expanded volunteer program Seeking volunteers for all aspects of operations
• Port response to GFMG proposal for 2007 reporting (see Finance)
• GFMG response re: Comprehensive Plan

Financials

• Preliminary December, 2006 approved at January, 2007 GFMG Board Meeting - December will not be final until we close the year for tax purposes.
• Reviewed 2007 budget and reporting structure with Bryson and Patton. - Requesting formal approval from Port Commissioners.

Fund Development

• Fund development - 2006 End-of-year drive completed successfully
• Comprehensive database in development

Events

• Home Biz Expo rescheduled for February 24^th and 25^th to allow more time for vendors to prepare, also adding networking breakfast on Sunday featuring Sharon Hart of EDC and Local Chamber speakers
• Sweetheart Wine & Chocolate market- 1^s1 weekend very successful. This weekend the market will take place all three days. The wine shop will be closed for this event so that the GFMG can serve wine in the main barn.
• Caretaker Cottage work party: caring volunteers will help provide affordable housing to a family in need.

LEASED AREAS

Tenants

• Tacky Ladies have provided notice that they will not renew their lease in the spring - need more time to focus on animals and home projects. Going out of business sale has begun. Search for new tenant is underway. Wine Shop to remain in the historic Barn A
• Seeking approval of lease conditions for Caretaker Cottage

Volunteer Organizations

• Greenbank Garden Club prepared entryway for spring planting
• Master Gardeners Lease is in process

Playground Area:

• Working on plans to expand play area to serve broader range of children
• Focus on play equipment for toddlers
• There is money available in a restricted account for this project
• Ribbon cutting to coincide with Loganberry Festival's new children's stage

Facilities/Repairs

• Caretaker Cottage work party planned for February 24, 2007
• Barn A painting status - waiting for weather to improve
• Plans for removal of berm with poison hemlock - seeking estimates

Other repairs

• Water Pipes - complete
• Electrical panel
  • Door to JDH and various doors to Barn A need repair
  • Electrical panel
  • Electrical panel
  • New ATM contract- allows for better service and greater return for farm.

MANAGED AREAS

General

• Fencing - basic repair work underway
• Richard Rhydes is working Pro Bono on proposal to update and improve highway signage

Agricultural

• Working with Bee Man on proposal. Currently identifying acceptable crops
• Planting cover crops of beans and peas in new loganberry area. Improves the soil and helps prepare for new loganberry plants
• Market garden experiment- planting crops needed to support local farmers markets

Recreation

• Looking to put together committee to review off-leash dog area issues
  • Poop management
  • Verbal control
  • Wildlife impacts

Tom Baenen GFMG Report:

Financial Statements: Baenen said that the GFMG was happy with it financial results at the end of December, 2006. He asked if the Board had any questions on the financial statements. The Board did not have any questions at that time. Baenen said that the GFMG balance sheet showed that the Greenbank Farm was in a strong healthy position. The Port needs to be aware of that because when the Farm is turned over to the Port there is some significant work that will also be turned over to the Port so the Port should keep track of the balance sheet closely.

Contract Rents: Baenen had prepared an excel spreadsheet showing the Greenbank Farm's 2007 rental income (including the annual 1% CPI increase). Baenen pointed out that an amount had not been entered on the spreadsheet for Caretaker Cottage rent because that building is under renovation and would not be completed until late February. When the renovation is complete, the GFMG will charge a contract rent of $600 per month.

Imputed Rents/Leasehold Taxes: Baenen had prepared a hand written document that showed a review of imputed rents. Imputed rents are charged on the spaces at the Farm that are leased from the Port, rent free, by the GFMG, which could otherwise be rented at fair market value. An imputed rental value must be determined in order to calculate the proper amount of leasehold tax that must be paid. Baenen's imputed rent schedule showed the present imputed rent values versus the new imputed rent values as proposed by the GFMG. These figures were based on Baenen's research on the fair market value of the spaces used by the GFMG. The new contract rents total $7,451.35 per month and the new imputed rents total $2,313.50 for a total of $9,764.85 per month, which is then multiplied by the current leasehold tax rate of $12.84% to come up with a monthly leasehold tax amount of $1,253.80 ($15,045.60 per year). The GFMG will start paying monthly leasehold tax to the Port based on these new figures. He said that the GFMG would be conducting an annual review of rents every year from now on. Weber asked how Baenen had come up with the fair market values for imputed rent. Baenen said that he compared the spaces used by the GFMG to other spaces at the Farm to come up with the figures. Weber said that the figures used by Baenen to determine imputed rent were much lower than any comparables that she had seen from realtors on square foot rates. Patton pointed out that Baenen had added the $600 per month Caretaker Cottage rent to the other contracted rents on the handwritten worksheet and reduced the imputed rent amount by the same $600 from $2,998 to $2,313 total monthly imputed rent. Baenen said that is correct. Patton said that the new proposed leasehold tax amount was not much different from the old amounts. O'Brien said that the current check received from the GFMG for monthly leasehold tax was for $1,194.14. Patton pointed out that the only test is whether or not the State Auditor would be satisfied with the new leasehold tax amount. The Port collects the leasehold tax from the GFMG each month and then passes it on to the State on a quarterly basis. Baenen said that the Port needs to be aware of the fact that if they take over the farm, they would be responsible to update these monthly rental amounts and calculate the proper leasehold tax amounts each year.

Caretaker Cottage Agreement: Baenen said that the agreement that had been in place since 1994 for the Caretakers Cottage was a 3 year rental agreement at $300 per month with the understanding that the occupant was the security caretaker of the Farm. The GFMG has prepared a new Caretaker Cottage Agreement. The changes in the new contract include an increase in rent charged from $300 per month to $600 due to all of the recent renovations. Also, the Farm has in the past paid for all of the utilities for the Cottage. Under the new agreement the proposal is that the tenant would be responsible for the first $50 of utility charges and the Farm would pay the balance. The new contract will be a one year contract versus a three year contract. The new contract is unique because it ties the rental agreement to the caretaker position. If the caretaker position is terminated for any reason the occupant must also vacate the Caretaker Cottage and vice versa. The Caretaker Cottage may not be used for any other purpose than a personal residence. The caretaker will be responsible for the upkeep of the common areas around the cottage. Because of the condition of the shed near the cottage, that is not included in the caretaker's upkeep requirements. There will be no subletting and signs are not allowed on or around the cottage unless the GFMG places them there. There will be no alterations allowed to the cottage. Any violation of the rental terms and agreements or employment terms and agreements will result in the individual having to vacate the premises. The GFMG's attorney is working to determine a time frame to be given to the individual to vacate the premises. Baenen asked for Port approval that when the GFMG attorney is finished preparing the new Caretaker Cottage Agreement, that he be given permission to take it to Bryson, as the GFMG liaison, and Patton to review and adopt so they can be ready to rent the facility as soon as the renovations are complete. The board agreed that he could do so.

2007 Budget: Hutchinson said that the 2007 budget is a fairly conservative budget that is close to their 2006 budget. The GFMG broke the budget into a series of allocations into the categories of Leased Property, Managed Property and GFMG activities. Hutchinson and Baenen had met with Bryson and Patton on Friday, February 9, 2007 to review the budget. Since that meeting the only thing that was changed was the total for Managed Properties. Income and expenses for the Managed Properties: The figure now included an additional $5,000 estimate for donated services and goods to account for the volunteer services to maintain the trails, the loganberry patch and all of the maintenance on the tractors. The total income for the Managed Areas is $50,000 of which $45,000 comes from the Port and $5.000 from the GFMG. The expenses for the Managed Area are $53,596, which is exactly $5,000 different than the original number shown to Bryson and Patton. An additional $5,000 had to be included to offset the $5,000 in additional donated income. Based on discussions with the GFMG new CPA, that is the proper way to account for the donated labor. The 2007 total GFMG income is $486,000 of which $50,000 of income and $53,596 in expenses are assigned to the Managed property. Hutchinson requested agreement in principle from the Board that this is form of reporting that would meet the Port's request for records for the managed area. The numbers that have been included in the report are budget numbers and the GFMG hopes to stick closely to those numbers. The GFMG will supply the Port with a monthly report showing actual income and expenses compared to budget for the Managed Areas. Compliance with the Management Services Agreement (MSA): Patton clarified that Hutchinson was requesting approval of this procedure from the Board as compliance with the MSA. Patton read aloud the section of the MSA pertaining to her request. He said that when he and Bryson visited the Farm, they were very pleasantly surprised to see that there was a new accounting procedure for the fee paid by the Port under the MSA being set up by the GFMG that went side by side with their expenses for the leased properties in their budget. The GFMG estimated real numbers in a budget for the managed properties and those numbers totaled out very closely to the management fee paid by the Port. By maintaining that report on a monthly basis, the GFMG will be in compliance with the MSA. If the Board has questions about the actuals, they still have the authority to look at the paperwork substantiating the actuals that they show every month. There is one issue that needs to be resolved. In September, 2007, Patton must come to the Board with a draft 2008 Port budget. The draft budget must include the service fee that the Port will pay to the GFMG in 2008. The monthly reports submitted by the GFMG will be approximately 60 days behind so it would be very hard for Patton to estimate what the GFMG service fee should be. The MSA states that if the service fee needs to be adjusted, they must determine what the adjustment would be at least 90 days prior to the anniversary of agreement on April 1, 2008. Patton suggested that rather than waiting for the actuals as they show up in the monthly report, he and Bryson meet with Hutchinson and Baenen on a routine basis so that they can begin to come up with a correct number. Hutchinson said that she would be pleased to meet with Bryson and Patton on a monthly basis. Depreciation: Hutchinson had one additional comment. The $53,596 figure was before amortization and depreciation. The GFMG uses its equipment to maintain the Managed Properties. The GFMG needs to determine a reasonable number to add to the equation related to the depreciation of their equipment. She also pointed out that depreciation and amortization were calculated twice on the budget. The first calculation has to do with the lives of the equipment that they use as shown on the GFMG tax return. The unusual situation where the GFMG has a ten year lease and is carrying a significant asset (all of the buildings on the Farm) on their balance sheet creates a situation where there is a different way to calculate depreciation and amortization based on the number of years left in the lease. That creates a much larger depreciation number but it is not done that way. The GFMG and the Port would need to figure out how to move assets between the two organizations. Weber said that the Port of Coupeville owns the Greenbank Farm and is on contract with the GFMG to manage that property for the Port. Hutchinson concurred.

2007 Greenbank Farm Events: Hutchinson provided a list of 2007 Greenbank Farm events that involve either use or potential use of the Managed Properties. She requested approval from the Board to use the Managed Properties as indicated for each of the events. Patton said that the Managed Properties are protected by a special review district package of zoning which is very restricted. Paragraph six of the MSA states that the contractor (in this case the GFMG) shall manage all short term festivals, events, other tourism and community oriented activities which are to be conducted within the Managed Property. Short term means less than seven days in duration. Short term events are preauthorized by the Port and shall not require written approval from the Port as long as notification of an event is provided to the Port more than 45 days prior to the date of the event. In the past, the Port has not received any written notification 45 days prior to an event. During the meeting between Patton, Bryson, Baenen and Hutchinson, they searched for a way to set up pre-notification of GFMG events in such a way that the Port Commission could carry out its obligation to protect the Managed Properties in accordance with the zoning. They came up with an annual pre-notification system that would identify the events that would either use or potentially use the Managed Properties in some way. Patton said that the letter submitted today identifies the use or potential use of managed properties for the events scheduled in 2007. The Board must decide whether or not to give the GFMG blanket approval on an annual basis for that list. He pointed out that any events not on the list would require approval from the Board 45 days in advance of the proposed event. Baenen asked that the Board be prompt with its reply to the GFMG if they request an additional event to be added to the approved event list. The GFMG would give the Board as much prior notice possible but they would like to avoid losing an event due to time constraints. The Board concurred.

ACTION: A motion was made by Weber and seconded by McDonald that Bryson be given the authority to approve any additional events that would either use or potentially use the Managed Property in some way. The motion passed unanimously.

ACTION: A motion was made by Weber and seconded by McDonald to accept the 2007 Greenbank Farms list of Events that would either use or potentially use the managed property in some way as submitted to the Board. The motion passed unanimously.

Hutchinson requested that the Board also formally approve the new accounting format as submitted by the GFMG.

ACTION: A motion was made by Bryson and seconded by McDonald to accept the proposed new accounting format as presented by the GFMG for identifying costs charged to the Managed Properties in columns with other parts of the Farm's operations. The motion passed unanimously.

Comprehensive Plan Hearing Comments: Hutchinson submitted her written comments regarding the Comprehensive Plan that she stated at the January 25, 2007 special meeting for the purpose of briefing the public on the plan. The Board accepted the written comments and said that they would be considered with the other written comments for the Comprehensive Plan. Hutchinson said that also at that time, she had agree to provide Patton with additional information regarding her thoughts on how the section on the Greenbank Farm might be modified to better identify the differentiation between the assets of the Farm and the assets of the Port and also the issues about how they are going to face the year 2014 when it arrives. She will submit her additional comments in writing to the Port at a later date.

Baenen requested that the Board authorize Bryson to review and approve the Caretaker Cottage Agreement after it has been approved by the GFMG's attorney.

ACTION: A motion was made by Weber and seconded by McDonald to authorize Bryson to review and approve the Caretaker Cottage Agreement on behalf of the Port after it has been approved by the GFMG's attorney. The Port would reaffirm Bryson's approval at the next regular Port meeting. The motion passed unanimously.

Comprehensive Plan Editor-in-Chief's Report: Blankenship reported that the Port held two public briefings on the Comprehensive Plan at special meetings: January 23, 2007 at the Coupeville Recreation Hall and January 25, 2007 at the Greenbank Progressive Club. A third public briefing on February 10, 2007 at the Monroe Landing Firehouse was not convened as a special meeting because no one from the public attended. Public input from the two meetings was collected in the Minutes of those meetings and will be reviewed by the Commissioners. There have been some requests for additional public briefings. The Commissioners have scheduled another special meeting for March 3, 2007 (2-4 pm) at the Greenbank progressive club. Blankenship said that there had also been a request to extend the public comment deadline. The current deadline runs from January 10 through March 31, 2007. She asked the Board to consider whether to allow more time for public input. Weber suggested having Patton place advertisements for the March 3, 2007 meeting in all of the local papers.

ACTION: A motion was made by Weber and seconded by Bryson to have Patton place paid advertisements for the March 3, 2007 meeting in all of the local papers. The motion passed unanimously.

The Board asked Patton to obtain estimates for the cost of the advertisements and submit the estimates to the Board via email.

The Board agreed to table the decision to extend the public comment deadline until the next regular Port meeting on March 14, 2007.

COMMITTEE REPORTS:

McDonald requested that due to time constraints, she be permitted to submit her committee reports in writing to be attached to the Minutes. The Board had no objections to her request.

Marine Resources Committee (MRC): (Weber) Weber said that she would also submit her committee report in writing to be attached to the Minutes.

Shoreline Management Plan (SMP): (Bryson) Bryson said that a public meeting will be held to review the new SMP sometime in March and those interested should watch the media for announcements.

Greenbank Farm Liaison: (Bryson) Bryson said that this activity had already been reported earlier in the meeting.

Council of Governments (COG): (McDonald) See note above

Economic Development Council (EDC): (McDonald) See note above

WPPA Legislative Committee: (McDonald) See note above

RTPO: (McDonald) See note above

NEW BUSINESS:

Adoption of Bylaws: The Board tabled discussing and adopting the draft Bylaws until the March 14, 2007 regular Port meeting.

ACTION: A motion was made by Bryson and seconded by Weber to table adopting the Bylaws until the March 14, 2007 regular Port meeting. The motion passed unanimously.

Election of Board Officers:

ACTION: A motion was made by Bryson and seconded by McDonald that the officers continue in their positions until the 2008 election. The motion passed unanimously.

Adoption of Resolution #138 re: Designation of agent for accepting damage claims:

Weber said that this is a resolution by the Port of Coupeville commissioners designating a Port of Coupeville agent for accepting any claims for damages filed under the Revised Code of Washington. The resolution notes that the secretary of the Board of Commissioners is Ann McDonald and she may be reached during normal business hours at the Port Office.

ACTION: A motion was made by McDonald and seconded by Bryson to adopt Resolution #138 as presented. The motion passed unanimously.

ANNOUNCEMENTS & ADMINISTRATIVE ACTIONS:

Next Port regular meeting: The next regular monthly meeting of the Port's Board of Commissioners will be held on Wednesday March 14, 2007 at the Island County Commissioners' Hearing room.

Monthly Financial Status Report: (O'Brien) O'Brien submitted the preliminary January, 2007 financial statement.

ACTION: A motion was made by Bryson and seconded by McDonald to accept the preliminary January, 2007 financial statement as submitted. The motion passed unanimously.

Patton pointed out that the Port had to dip into its operating reserves in order to pay the current vouchers. The Port will not receive large revenues from its property tax levy until April, 2007 so any expenses incurred in the next few months will have to be paid from the operating reserves. This is exactly what happened at the beginning of 2006. Patton pointed out the importance of keeping a substantial operating reserve.

Approval of Current Vouchers: O'Brien submitted vouchers audited and certified by the auditing officer as required by RCW 42.24.080. She also submitted expense reimbursement claims certified as required by RCW 42.24.090.

ACTION: A motion was made by Bryson and seconded by McDonald to approve by signature the December, 2006 vouchers numbers #307 - 336 for a total amount of $26,718.57. The motion passed unanimously.

ADJOURNMENT: There being no further business to come before the Board, Weber adjourned the meeting at 12:45 pm.