Commissioners Present: Benye Weber, Bruce Bryson and Ann McDonald

Others Present: Jim Patton (Executive Director), Molly MacLeod-Roberts (Edwards & Associates), Roy Daniel (Island Transit), Nathan Whalen (Whidbey News-Times), Justin Burnett (Coupeville Examiner), Michael Stansbury (GFMG Treasurer) and Tom Baenen (GFMG President)

Call to Order: The regular meeting was called to order at 10:30 a.m. by Commissioner Weber in the Island County Commissioners' Hearing Room located at #1 NE Sixth Street, Room B-102, in Coupeville, WA followed by the Pledge of Allegiance.

APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING:

Weber stated that the Minutes for the regular meeting of August 8, 2007 were available for approval and signatures.

ACTION: A motion was made by Weber and seconded by McDonald to approve the August 8, 2007, regular meeting Minutes as submitted. The motion passed unanimously.

SPECIAL PRESENTATIONS:

Island Transit proposal re: Park & Ride (Roy Daniel): Roy Daniel, Operations Supervisor for Island Transit, presented a proposal for a Park & Ride Lot at the Greenbank Farm. He said he had worked at Island Transit for 18 years and had watched it grow from 4 buses on the road to the current fleet of 60 buses and 60 vanpools within its fixed route and para-transit system. Island Transit has over 100 employees in Island County. Daniel said Island Transit has had a lot of growth, especially in the last 18 months. Routes have been added to the South Whidbey area, and also from Camano Island to Everett. Island Transit just received 5 new 40-ft. buses. Daniel gave the Board copies of a map of the area Island Transit proposed using as a Park & Ride for their reference. He said Island Transit does have a Park & Ride at the Greenbank Progressive Club, but it is one block from the highway and doesn't have the exposure to the public that Island Transit would like it to have. Ferry traffic: Daniel said that the population of Island County has increased, and traffic has continually increased every year. The ferry system will have a 3rd boat in place in 2018 to accommodate the increased population, with boats running every 20 minutes. Island Transit has plans to meet that demand by having a bus at the terminal to meet each boat and go up the island. They want people to get to the nearest Park & Ride as easily and quickly as possible, get on the bus and get to the ferry dock. Island Transit recently purchased property in Coupeville and Langley for use as Park & Ride lots, and would like to establish another Park & Ride in the Greenbank area. Daniel said they are looking at possibly 2.5 acres, and a good location would be at the intersection of Wonn Road and State Route 20. Landscaping: Island Transit has an engineering firm that will work with them, and they are aware of the county ordinances and the design standards which require plenty of vegetation, trees, buffers, plantings, etc. Daniel said that even if the County didn't require those measures, Island Transit would do it anyway because they emphasize the word park in Park & Ride, meaning plants, trees, shrubs, etc. Daniel said the Park & Ride lot could serve the community very well for many years.

Board's questions: Daniel asked the Board if they had any questions. Location of proposed area: McDonald referred to the map and asked if it correctly indicated two different parcels. Daniel said yes, it did. He added they could divide it in half and put one lot on either side of Wonn Road or they could do it all on one side. Daniel said it depends on what the Board wants to do. Executive Director Patton said the areas on either side of Wonn Road are zoned Commercial in the Island County Special Review District zoning ordinance and set back about 150 feet on both sides of Wonn Road. Patton noted that a Park & Ride is permitted in the Commercial area of the zoning ordinance. Traffic concern: McDonald asked if there is a turn out lane going northbound and Daniel said yes, there is. She asked if there is one traveling southbound, and Daniel said no, there is not. Daniel said their consultants or engineers would most likely be required to conduct a traffic study, and perhaps would provide a turn out lane. Parking spaces provided: McDonald asked how many parking spaces Island Transit would ideally like the proposed Park & Ride to have. Daniel said with two acres Island Transit could provide parking for 100 cars. He said that many years ago, the Department of Transportation said 95 cars could be parked on one acre, just by asphalting the whole area. Island Transit doesn't want to do that. They want to have 50-60 parking spaces per acre and have landscaping. Maintenance concerns: McDonald said she was concerned about the appearance and care of the Park & Ride, and said the Park & Ride at the Greenbank Progressive Club is frequently muddy and has potholes and rocks. She would hate to consider something at the beautiful Greenbank Farm that would not end up being properly cared for. Daniel said he agreed with her, and said if Island Transit builds it, they will maintain it. He added that the front half of the Progressive Club lot has recently been asphalted and there are no longer potholes there. Daniel said Island Transit would maintain the Park & Ride at the Farm and manage it. Weekend use: Patton noted that on weekends at the Farm they frequently have overflow parking in the triangular area south of Wonn Road. He asked if Island Transit would allow the Park & Ride to be used for overflow parking, and Daniel said, Absolutely. Daniel added that when there are special events such as the Highland Games or Loganberry Festival, if Island Transit had a Park & Ride at the Farm they could provide service every hour. Lease/Purchase issue: Patton asked if Island Transit usually works out a lease with a public entity such as The Port of Coupeville. Daniel said no and explained that the funds Island Transit has to develop Park & Ride lots cannot be used for leases. Patton said if Island Transit could not pay for a lease, there would still be a legal instrument that would authorize the use of the Port's land and Daniel agreed. Daniel said he didn't know what covenants, etc. the Port had. Weber asked if Island Transit is proposing to purchase 2 acres. Daniel said that was an option, but he didn't know if the Port's bylaws allowed for such a sale. He added that if Island Transit cannot lease and the Port cannot sell the 2 acres, the only other option would be to set aside that portion for a Park & Ride lot, if the Port's bylaws allowed that. Island Transit would still maintain and manage it, but the Port of Coupeville would still own the property. Master Site Plan: Patton said the Port of Coupeville has the authority to sell the property, but that would be antithetical to the Master Site Plan the Board is planning for Greenbank Farm. Weber agreed. Patton said the Park & Ride would have to be fitted into that Master Site Plan. He said the Port of Coupeville appreciates the fact that Island Transit would make the Park & Ride attractive. Daniel said that with two acres they could do plants and parking, and Island Transit could work with a small committee of citizens that the Board would set up to get involved with the design that could include trails, etc. Patton said the Port of Coupeville currently leases a piece of land on Front Street to the National Park Service. It is a 50-year lease and the only quid pro quo for that was the National Park Service built a kiosk for the Port of Coupeville. Patton said the Port has a lot of flexibility to do these things; the issue is whether or not the Board will decide it is in the interest of the Port to do it. Timing questions: Weber said she is not sure that Island Transit is ready to make a proposal on paper that the Board could consider. She pointed out Daniel's referral to the year 2018 and said that was some time in the future. Weber said the Board has several things that are a priority for the Port, especially the implementation of the Port of Coupeville's Comprehensive Plan. Two things that are most important are the Master Site Plan and Asset Inventory for the Greenbank Farm. Weber explained the Board is on the fast track of starting to implement some portions of the Master Site Plan and Asset Inventory. She thinks the Park & Ride item could come up under that with the involved focus groups. Weber thanked Daniel for his presentation. By presenting the information now, it gives the Board time to get a Master Site Plan and Inventory Coordinator and get on the road to implementing the initiatives of the Comprehensive Plan. Bryson asked Daniel what the timeframe is to secure an opinion. Daniel said when he mentioned the year 2018; he was referring to the Washington State Ferry System's scheduled route expansion. He said Island Transit has a much shorter timeline. Island Transit has about two years to produce or complete this project or they will lose funding. Bryson asked if that meant completing the project in two years and Daniel said yes. Bryson asked when Island Transit needs to know whether the Board considers it to be an acceptable proposal. Daniel said he could write a Letter of Understanding outlining Island Transit's responsibilities and objectives. Weber said the letter should include Island Transit's timelines, and Daniel said he would add them. Weber said Island Transit evidently has some grant money available that will expire. Bryson asked if Island Transit submits the proposal, what would be the drop dead date that Island Transit would need to know the Board's intention - would it be 3 months? 6 months? A year? Daniel said he would hope to have something within a couple of months. It is hard to say, and it could be within 6 months. Patton said the Board hopes to have the focus groups for the Greenbank Farm Master Site Plan up and running in January, and suggested Daniel come and address the Commercial Focus Group. Patton said that would mean Island Transit would need to have its written scheme by January. Daniel agreed. Weber said that would work by giving the focus groups the opportunity to have input. Potential Restrooms: McDonald asked if Island Transit's Park & Ride lots included public bathrooms and the maintenance thereof. Daniel said No, not at the present time. He added that the Washington State Department of Transportation's Park & Ride lots probably don't have public restrooms either. The cost of maintaining restrooms is too high. However, Island Transit would look at the option because it would be nice to have a restroom for commuters' use, especially something like the recyclable toilet system in place at Bayview Corner.

The Board thanked Daniel for his presentation. Weber suggested Daniel consider putting together a little fact finding on where Island Transit's planning is, what its needs are and what timelines it has. Daniel agreed and thanked the Board.

MEETING OPEN TO PUBLIC INPUT: Weber opened the meeting to public input. No one wished to speak and Weber closed the meeting to public input and returned to the public meeting.

UNFINISHED BUSINESS:

Port Executive Director's Report: (Patton)

Boating and fueling activity - mooring buoy replacement and safe loading: Patton reported fuel sales for August were $12,284. Moorage revenue total for August was $3,278. Those totals are slightly more than in August 2005, but a lot less than in August 2006.

Status of electrical repairs on causeway: Patton talked with the electrician yesterday and he will be ready to replace the rusted conduit on the causeway. The work will be scheduled so as not interfere with any refueling activity, especially that of the mussel farm. Patton said the electrician had also looked at the new Port basement. Patton invited the Board to have a look at the basement now and compare it to how it was before. He said Dick Tackett had put on a hazardous material protection suit last Saturday and removed all of the rat-infested insulation. The electrician will get rid of the 50-year accumulation of wires and replace that nest with code electrical wiring. Once the new wiring is in, Tackett will plug all the holes so it will no longer be possible to see into the basement from the outside. Then the ceiling will be re-insulated Patton said that the basement job is coming to closure pretty well. Weber asked if the wiring was ready for state inspection. Patton said once the wiring is in, then the Town of Coupeville's inspectors will need to come in and they will then provide certification for the Department of Fish & Wildlife, etc. The Port needs the Town of Coupeville's stamp of approval.

Status of rental spaces on the Wharf: Long's Café: Patton said that as the Board is aware, the restaurant has been going pretty well. The real measure of that isn't if the boaters and tourists eat there, but if the local people do. The locals have been eating there, and owner Long Bechard is counting on them for the wintertime. The word-of-mouth advertising for the Café has worked well. KWPA Radio Station: Patton met with William Bell, who reported that WICA has been unable to divert assets from equipment acquisitions to adequately launch the radio station and marine supplies store at the Wharf. They have acquired the broadcast equipment and the computers and operating signal station are completed and ready to move into the facility. Patton met with KWPA's radio engineer who will be doing the installation. KWPA now believes their broadcasting antenna will not require any exterior mounting on the Wharf. Patton said KWPA has just not been able to accumulate enough assets to kick off a coffee shop or a place to supply the boaters. It is unfortunate because during the tourist season if they had the storefront open they would have made enough money to pay for it. Bell said he had recently spoken with the local Chamber of Commerce president, Sarah Richards. Weber said Bell had been at the June Chamber of Commerce meeting. Bell was looking into ways that local tourist-based businesses could offer their products at the pier, along with marine-based products. Outstanding $1,404 invoice to Jan Graham: Patton telephoned Graham yesterday and she acknowledged receipt of the Port's invoice covering the expenses of rehabilitating the restaurant space on the wharf. He asked her to send written acknowledgement that she had received the invoice. Patton explained to Graham that the Board would like to understand what she intends to do about the outstanding invoice. Graham said she had no money now and that she was thinking about bankruptcy. Patton urged her to at least respond to the Board. He said if Graham has not paid it within the next 60 days, he would ask the Board to decide if they want to resort to legal collections of some kind. Graham has promised a response.

Status of strengthening the Port office basement: Patton said all the concrete is poured, the new bulkhead is in and they just put up the final vapor barrier this morning where there is exposed earth behind the new wall. All of the new supports are in and they are all tied off with steel angles. Patton said he is looking forward to having Jack Husband, the design engineer, come down there, because he helped a lot with the planning. Patton added that he very much appreciated the contractor's (Ken Cunningham) work because he kept the costs down and he did excellent work.

Status of Comprehensive Plan initiatives (Master Site Plan and Conservation Easement): Patton said this subject would soon assume a larger and larger time portion of the Port's regular meetings. He said he would give the Board a tracking sheet for the 13 initiatives listed in the Comprehensive Plan 2007-2026. Patton said he didn't have the tracking sheet today since he had been working on the budget, but they would have it soon. The Board will be able to determine the status of each of the initiatives using the tracking sheet. Marine Education Center: Patton said WSU-Extension had not yet responded to the Board's letter requesting them to chair a group of stakeholders for the Marine Education Center on the Wharf. Patton received an email from Don Meehan this morning. Meehan said Graham Johnson is in charge of that task, but Johnson is on vacation. Meehan said that when Johnson returns, he would meet with Patton to scope out how it will work. Conservation Easement: Patton said that when the Port of Coupeville, being a municipal corporation, looked to have the authority to transfer development rights on any of its property to another municipal corporation such as the County, the question became: Would the County be prepared to receive those development rights and to act as Conservator? Patton telephoned Dave Jamieson, the Island County Civil Prosecutor, who was supposed to be the action officer for this type of situation. His response via his secretary was that he could not advise the Port; he can only advise the County. Patton then telephoned Mike Shelton, Island County Commissioner, and explained the situation. Patton told Shelton the Port simply needs an answer as to whether or not the County believes they can accept these development rights and act as Conservator. Shelton promised to get the information from Jamieson before he left office but Patton noted Shelton has now left office and the Port has not heard anything from Jamieson. The next step is to approach Shelton's successor, Phil Bakke. Patton said the selection of Bakke to fill Shelton's position is very fortunate for the Port because Bakke is the one who drafted the zoning ordinance for Greenbank Farm. He understands this particular issue at the Greenbank Farm better than anyone else. Patton said he and Michael Stansbury would arrange a meeting with Bakke and go over the details. Effect on the Bonds: Patton said if the Port does have the authority and the Port has identified a municipal entity as a willing Conservator, the question is: Will the transfer affect the bonds in any way (e.g., the value of the bonds and the tax free status of the bonds)? Patton said Stansbury had planned to try to informally talk to some bond counsels at Foster & Pepper. Patton asked Stansbury if he had anything to report. Stansbury said he did not at this point. He thinks they are making progress on understanding the substantive issues, and it is a matter of getting the right framework to get it settled. Stansbury expects by the next Board meeting a lot of these issues may be settled. Patton asked Stansbury if he would be comfortable accompanying Patton to the meeting with Bakke and laying things out for him, and Stansbury responded, Certainly. Master Site Plan Workshop Meeting: Patton said the workshop meeting was very effective and noted that both Baenen and Stansbury attended. Patton felt they were able to set a course for the future. Patton said that last night he had emailed the Board his recollections from his notes of that meeting. MacLeod-Roberts had attended the meeting and recorded it so there will be a transcript of the meeting, but MacLeod-Roberts has not had time to complete those Minutes yet. Master Site Plan Coordinator and Asset Inventory Conductor: Patton encouraged Baenen and Stansbury to speak up as he summarized the workshop findings. Patton said the workshop resulted in the identification of two positions that needed to be filled. One position is for the short-term job of performing an asset inventory as laid out in the Comprehensive Plan 2007-2026. The inventory document will then be circulated to the focus groups so they will have a common frame of reference when discussing the future of the Greenbank Farm. The second position is that of the Master Site Plan Coordinator. That is a much larger task and will run from late fall 2007 through 2008 and perhaps into 2009. That person will be the ringmaster who will assist the Board and the GFMG in recruiting focus group members. Those four focus groups will each have to meet at least once a month, and that means the Master Site Plan Coordinator will be meeting with a focus group every week. The Master Site Plan Coordinator will be responsible for scheduling dates, times and locations of those meetings. At the end, working with the Board and the GFMG, the Coordinator will put together a Master Site Plan. Patton said the Board would need to make sure that Plan is internally consistent, i.e. the agricultural plan component can not be in opposition to the commercial plan component, etc. Patton said Baenen made an excellent point at the workshop meeting when he said the selection for the position should be made very carefully and the Port should not shrink from paying a qualified individual the amount of money they are worth. Patton said the Board and the GFMG had all agreed that was a good way to proceed. Informing the public: The attendees of the workshop concluded that Patton should prepare an audio/visual presentation and give it somewhere in Greenbank and selected possible dates. Patton reported that he had scheduled the public meeting for November 10th at the Greenbank Progressive Club from 10:00 a.m. until Noon. Patton said at the workshop meeting that the public would get a complete story of the Master Site Plan and have the opportunity to have their questions answered. Hopefully, the Master Site Plan Coordinator will be hired by then and introduced at the meeting. A table will be set up with sign up sheets for those volunteers eager to help work on the Master Site Plan. There will be separate sign up sheets for each of the focus groups. Patton said the workshop decided to postpone determining whether or not a second public meeting should be held until after the first meeting is held. Proposal from candidates for coordinator position: At the workshop meeting, the proposal received from Mike Diamanti for the Master Site Plan Coordinator work was mentioned. The group decided to table further discussion since they intended to spread the net wider. The Board and the GFMG also learned at the workshop that Donna Keeler had returned from Brazil, and Patton subsequently asked her to review the Comprehensive Plan and give the Board a proposal to do the asset inventory. After her review, Keeler concluded the Master Site Plan Coordinator should also be responsible for conducting the asset inventory. That way the Coordinator will have all the information necessary to coordinate all elements of the plan. Keeler presented Patton with her proposal to be the Coordinator and to conduct the asset inventory, and he subsequently circulated her proposal to the Board and to the GFMG. Patton feels the Board has made serendipitous progress and now has two viable candidates for the position. Weber agreed and added that Patton has the names of other individuals as well. Patton said that besides Diamanti he had approached two other qualified persons who had been members of the Comprehensive Plan Advisory Group as well as Sarah Schmidt who has done excellent research for the County. These three did not choose to submit proposals. Patton asked Baenen and Stansbury if they had anything else to add regarding the Master Site Plan or Conservation Easement. GFMG comments: Stansbury said Patton had provided a very good summary. Stansbury suggested that the public be invited to express their views regarding the Farm's future and its uses at the meeting on November 10th. He said that would give the broadest funnel of public views on the Farm at the very beginning of this process. Public announcements: Weber noted that during the workshop, the group had shared the importance of the Greenbank Farm's 10th Anniversary Celebration on September 23rd and concluded an announcement of the upcoming public meeting regarding the Master Site Plan should be made at the celebration, along with the announcement regarding the Conservation Easement. Patton agreed and said the workshop group had agreed to advertise the public meeting as much as they advertised for the Comprehensive Plan. He asked Baenen and Stansbury to let the core group that is planning the celebration know about the public meeting on November 10th. Patton noted there would be more people at the celebration who are intimately and passionately associated with the Greenbank Farm than will ever be seen again.

Status of negotiations for adjusting the management fee for the GFMG: Patton verified that the Board had received an email from Baenen and Stansbury regarding the proposed management fee adjustment. Patton said there had been some discussions about what would be an appropriate fee, and noted that he and Commissioner Bryson already conduct a monthly review of how the GFMG spends the fee. Bryson and Patton have not had any issues with the accounting records the GFMG has provided. Patton said as the Board prepares the 2008 budget, this is a good opportunity to hear what fee increase the GFMG feels is appropriate. Patton asked Baenen and Stansbury if they would like to speak about the adjustment. GFMG statement: Stansbury said the meetings he and Baenen had with Patton and Bryson to discuss the management costs have been very good. He said the negotiations have also been very good. They have been constructive and useful. When approaching the adjustment, the GFMG tried to identify the factors that bore on the need to increase the fee. One of the factors was the general inflationary increases that every organization and every person feels. The second factor was the need to give some recognition to the Farm's equipment and how to replace or upgrade it over a longer period of time. The third identified factor was the need for and the expense and benefit of developing a much bigger and broader volunteer organization at the Farm. Stansbury said the GFMG is just beginning that development, but it requires a database, a coordinator, an investment of management time and an investment of money. He added that because it is a volunteer organization, the GFMG would really get back much more than they put in. GFMG sees a need for a greater investment in the future. The fourth factor the GFMG identified was the increasing use of the Greenbank Farm. The Farm simply has more people and more events and more groups using it. Stansbury says that is, of course, why the Farm is there, but that increase in use results in an increase in maintenance expense, an increase in clean up costs, an increase in managing people flow, etc. The last item involved looking forward and determining what areas of the Farm where the GFMG can have the most effect with the least amount of money in terms of the Farm's appearance, and how to make it an even more attractive venue for the public. Stansbury said the GFMG considered two other factors. One was that the GFMG is negotiating the fee for a 2-year period, and then in 2010 the fee will be negotiated again for the final four years of the Management Services Agreement. Stansbury said that although the GFMG has identified various factors and thinks they quantitatively know what they are, the GFMG is working against the background of incomplete quantitative information. The GFMG feels that over the next several years, working with Patton and the Port, they will be able to have a much greater and more reliable base of information for the final four-year period. Request for additional fee: Stansbury said that in the interim period, rather than try to identify the quantitative elements of all the factors, the GFMG would instead make a proposal of a general nature and identified an 11% increase, which is roughly a kind of general inflationary increase on the base factor. Stansbury said the GFMG thinks they can do some very good things with the additional amount. In actual dollars, the increase comes to $4,950. He said there are obviously more needs the GFMG could address if there was funding available, but they recognize the limitations on the Port's budget. Stansbury said the GFMG will continue to work with Patton and the Board to try to identify longer term elements of the operation so when the time comes to negotiate the fee for the last 4 years, the GFMG will have a much better idea and will be better able to quantify the needs identified at that time. Stansbury said he again wanted to express his appreciation to Patton and Bryson for the way they handled the negotiation. Weber thanked Stansbury. Baenen said he wanted only to reiterate Stansbury's ending comment - it has been very good working with the Board's two representatives (Bryson and Patton) on an issue that is pretty hard to address. Baenen said that in two years with the accounting methods now in place, they should have very good information to approach the final four years. Weber said she wanted to express her appreciation to Baenen, Stansbury, Bryson and Patton for working so well together and coming up with the proposal. She appreciated their time, effort and dedication to this project.

Motion to accept the request for increased fee: Patton said since the Board would be dealing with the budget shortly, it would be very helpful if a motion were made to accept the fee adjustment by the GFMG. Weber asked if Bryson would like to do that since he was the representative to the GFMG from the Port, and Bryson said he would. He also reiterated Baenen's and Stansbury's comments and said the discussions had been cordial and up front. Bryson said it had been a very good process. He said he was especially appreciative of the documentation and accounting process that is now in place. Bryson said even though it is in its early stages, it is providing an excellent foundation for future negotiations. He said the figures presented by the GFMG are reasonable and supportable, and it is a good system that Bryson is very pleased with.

ACTION: A motion was made by Bryson and seconded by Weber to accept the fee increase proposed by the Greenbank Farm Management Group to begin April 1, 2008, and continue for a 2-year period through March 31, 2010. The proposal increases the annual fee to $49,950. The motion passed unanimously.

Weber thanked all present and said it was a relief and a nice ease of burden of responsibility that the Port can go into next year expecting good will and understanding. She said she appreciates everyone's efforts to complete this.

Resolution #142, adoption of the Accident Prevention Program: Patton said as previously reported, an official from the Department of Labor & Industries Safety Division had paid a lightning visit to the Wharf. She subsequently presented Patton with a 100-page document outlining in detail the steps required to develop an Accident Prevention Program. Patton said because there are employees, visitors and boaters around the Wharf and fueling activity, it is appropriate that the Port conducts safety inspections of equipment, has all the needed safety equipment on hand, and holds regular meetings with the employees to go over the safety points as required. He said it's very important that they have the Accident Prevention Program document on hand so that in the future, if any other surprise visits occur, the inspector will see that the Port has the required signage, the safety equipment has been inspected, and regular safety meetings are being held as required by the Department of Labor & Industries. Patton presented Resolution #142 to the Board. Weber asked how often the safety meetings are required to be held. Patton said every month and he added that one had been held the other day in the new basement with the Harbormaster and the dockhand when some safety issues had come up. Patton asked the Board to sign Resolution #142 and adopt the Accident Prevention Program.

Weber requested Resolution #142 be read into the record, and MacLeod-Roberts read it aloud. A copy of this resolution is attached to these Minutes and the Bylaws are on file at the Port office.

ACTION: A motion was made by Weber and seconded by McDonald to approve and adopt Resolution #142. Motion passed unanimously. It was signed and will go into effect immediately.

Bryson thanked Patton.

Greenbank Farm Management Report: (Baenen): Baenen, President of Greenbank Farm Management Group, was on hand to answer any questions the Board had regarding the August Farm Report he previously submitted and which is included in these Minutes. Baenen encouraged the Board to take the opportunity to meet the Wine Shop Manager, the Events Manager and the Operations Manager at the 10th Anniversary celebration. He said the events calendar for the Greenbank Farm is booked solid through the end of December.

The GFMG Finance Report for June was reviewed with Commissioner Bryson and Port Executive Director Patton on August 27th. The report was approved. Following a preliminary discussion of the Port/GFMG Fee for the period April 2008 through March 2010 was held. The discussion was open and candid. It was agreed we would meet once more before the September Port Meeting.

Preparations for the 10th Anniversary Celebration of the public ownership of the Farm on September 23rd are well underway. A great day is planned. We hope the citizenry of Island County will take this opportunity and turn out to congratulate one another on the magnificent effort put forth in purchasing this magical place 10 years ago.

Other activities and projects:

Sunday Markets continue to improve. Sunday vendors are increasing and new sales records are being set. For the Celebration on September 23rd the Market will be relocated to provide space for more vendors and will remain open during the afternoon.

Highland Games report a record turnout.

We still need to rent the vacant retail space. Several leads have been followed up but success continues to elude us.

Mowing operations continue.

The Market Garden has proven to be a success and appears to have helped Sunday Markets.

First Friday events at Whidbey Pies Café continue at Jan Gunn's Café. Next month, on September 7th Frank Rayle, local wine maker, will be pouring at the tasting bar and Betty Rayle, local artist will be showing her art in the Barn Loft.

Work on the Conservation Easement continues at a steady pace.

Work on a Master Site Plan for the Greenbank Farm is about to start. A Workshop to discuss the project has been set by the Port for 5 PM at the Whidbey General Hospital Board Room on September 5, 2007.

Weber thanked Baenen for his report. Weber said it is very useful to have the report prior to the meeting. She said she continues to hear very good comments about the Farm, the activities, the management and the cordial atmosphere and cooperative spirit that exist there. Baenen asked the Board to please plan on attending the 10th anniversary celebration on September 23rd. The Board thanked Baenen.

COMMITTEE REPORTS: The commissioners will provide relevant reports as appropriate for attachment to these Minutes.

Central Whidbey Chamber of Commerce: (Weber) Weber reported the Chamber did not meet during July and August, but the next meeting will be September 13th at the United Methodist Church Fellowship Hall at 8 a.m. She said coffee and rolls or cookies are available at 7:30 a.m., and there is a chance to interact with the membership then.

Marine Resources Committee (MRC): (Weber) Weber reported the MRC is back to its winter schedule, but the 4:00 p.m. meetings are now held in the Island County Commissioners' Hearing Room on the 1st Tuesday of the month and in the Camano Annex on Camano Island on the 3rd Tuesday of the month.

Northwest Straights Commission (NSC): (Weber) Weber reported the NSC had met at the Island County Commissioners' Hearing Room on August 24th. The NSC includes the seven counties that have Marine Resource Committees in the North Puget Sound area. She reported the items of interest as the discussion of the derelict fishing gear removal project, the Island County MRC Marine Stewardship Area signage, and the desired action with integrating the Puget Sound Partnership. Weber said the meeting attendees were brought to the causeway at the Wharf at the lunch break and view the new Marine Stewardship Area signs describing the future of the Marine Resource Education Center. Weber said an appointed member of Governor Gregoire's office attended the meeting, as well as a state senator, a state representative and other lead persons from the MRC Committees in the 7 counties in the Puget Sound area. Weber said she had the opportunity to welcome them to the Wharf on behalf of the Port of Coupeville, and they were quite excited about what the Port is doing there regarding education and very pleased with the process that had taken place. Weber reported there has been some research regarding derelict gear and creosote project removal. She said she would give copies of the information received at the meeting to the other Commissioners. Weber said the MRC continues to successfully generate grants to continue the projects they have on board, and they are very pleased with their new Executive Director, Rex Porter, who formerly worked for Island County Planning & Development. Weber said the next NSC meeting would be September 18th in the Island County Commissioners Hearing Room at 4:00 p.m. She said they try to alternate between one business meeting and one program meeting to let the generate public know how the NSC is spending the money and provide the public with progress reports.

Shoreline Management Plan (SMP) and Greenbank Farm Liaison: (Bryson)

SMP: Bryson had nothing to report regarding the SMP. He said it is still in process. The Town of Coupeville is changing its plan back to meet the Department of Ecology's requirements.

Greenbank Farm Liaison: Bryson said his Greenbank Farm Liaison report had already been covered earlier in the meeting and he had nothing further to add.

Council of Governments (COG), Regional Transportation Policy Organization (RTPO), Economic Development Council (EDC) and WPPA Legislative Committee): (McDonald)

EDC: Did not meet during the summer months.

WPPA Legislative Committee: Did not meet during the summer months.

COG:

Puget Sound Energy (PSE): McDonald reported the COG meeting had a visit from two PSE representatives. They discussed where PSE was at as far as improving the power outage situation in Island County. PSE has been doing a lot of tree trimming very aggressively. They have also been enforcing and acquiring rights of way. PSE said in the future there would be a local person available with answers regarding local conditions when customers telephone PSE for updates. Ray Trzynka, the local area manager for PSE, will be in charge of that.

University of Washington (UW) North Branch Campus Site Selection. The COG also had a visit from two representatives of the site selection group. One was from the UW and the other was from the State office in Olympia to give an update on what was going on. McDonald said that since things had changed dramatically since that meeting, she wouldn't spend much time discussing that now. She said Island County is 100% off the list at this point in time. McDonald said it was interesting to hear about the background on other branch facilities. The new campus will be pretty much a technical school, but it was noted that liberal arts students in other technical schools still make up the largest number of students. When the new project starts, it will probably start with small rented spaces and some of the programs will be underway as the new college is built. The new campus will not be built all at once; it will be a phased-in process.

Rural County Fund Applications. An application for $1 million was submitted by the City of Oak Harbor to go towards the Pioneer Way street reconfiguration in the Old Town area.

RTPO: McDonald reported there were three projects submitted involving Skagit/Island Counties.

Bicycle Safety/Pedestrian Facility & Education Training. The funds were approved in 2006 but there is not enough money to complete the project as it was presented one year ago, so they need additional money to complete it.

Historic Preservation, particularly in relation to abandoned railway corridors, the rehabilitation and operation of historic transportation buildings and structures or facilities.

Establishment of transportation museums.

Weber asked if those were applications for that pot of money and McDonald said yes, that was correct. Weber asked when the COG would vote on the applications. McDonald said she didn't know the exact date but believed it would be in November. She said she would get back to Weber on that, and Weber thanked her.

NEW BUSINESS:

Preliminary 2008 Budget submission for approval: (Patton) Patton explained that every Port budget begins with a calculation of the levy, which is the principal source of income. He referred the Board to their copies of the Budget Revenue Calculation For Year 2008 dated September 10, 2007. A copy of that document is attached to these Minutes. Patton then referred the Board to their copies of the 2008 Preliminary Budget that had four columns of figures: the 2007 Amended Budget, the Year-to-Date, the End-of-Year Estimate and the 2008 Preliminary Budget. A copy of that document is also attached to these Minutes. Patton noted the 2007 Budget was amended on May 9, 2007. He explained he used the Year-To-Date information to estimate what the End-of-Year revenue and expenses will total. Patton went through each section of the General and Administrative 2008 Preliminary Budget. The total estimated income for 2008 is $377, 455. He noted that the major changes to the 2008 budget from the 2007 budget were 1) levy increase of $13,654 and 2) lower fuel sales of $16,529. Patton next discussed the expenses, and noted that Long Bechard is putting in less time as Harbormaster since she opened Long's Café, but the Port is fortunate to have an excellent dockhand working more hours. The dockhand has already agreed to work for the Port next year, and he is currently working on the weekends during the school year. The total estimated expenses in 2008 are $295,990. The major changes to the 2008 budget from the 2007 budget are the increased expenses for the painting of the Wharf ($20,930), the compensation for the Master Site Plan Coordinator ($25,000) and the decreased expense for the purchase of fuel.

Front Street Park: Patton told the Board that Mayor Nancy Conard had come to the Port office yesterday, and she told Patton that on behalf of the Town of Coupeville she is going forward for low impact grants. Mayor Conard asked if the Port of Coupeville would object to the town incorporating planning for the park with the fund planning work they are doing. Conard offered to have Patton or any Board member to have membership in that planning group, and the Port would not have to pay anything for improving the Front Street Park. The Town of Coupeville is writing the grant proposal. Weber said it is a great idea and they should consider all the funding sources out there. Bryson said he liked it, especially the specifics regarding low impact because it ties in well with what the Town is already doing. He said if the Port were to do the project, it might require a specific grant involving matching funds. Weber said there are two ways to look at it. She said it is important they get all the facts first because they are going to be eligible for a lot of things, and this particular project could be a portion of a larger grant if the Port does it themselves. Weber said she would like to consider it further before giving her consent. She said the bathroom facilities are one of the things they need to consider. Patton said he had asked Mayor Conard to provide additional information in written format, and he will circulate that to the Board when he receives it.

Greenbank Farm: The Preliminary 2008 total for the Port G&A expenses is $304,030. The other portion of the Port's expenses is that of the Greenbank Farm. The total for the Greenbank Farm's expenses is $73,425. The 2008 preliminary budget will be adjusted to reflect the increased fee agreed upon today, so January through March of 2008 the monthly fee will remain at $3,750, and April through December of 2008 the monthly fee will increase to $4,125. Patton said the Board needed to consider the budgeted amount of $9,875 for Construction, Repair & Maintenance for the Greenbank Farm. Patton explained that number was a forced figure. In order to achieve a balanced budget, he had to subtract the Port G&A expenses of $304,030 from the total revenue and all that remained to be spent on the Greenbank Farm is $73,425. The increased management fee and the other expenses are committed, and that leaves only $9,875 for work on infrastructure at the Farm. Patton referred the Board to a memo from Baenen listing and prioritizing recommended 2008 Greenbank Farm maintenance projects. A copy of that prioritized list is attached to these Minutes. The first project is the improvement of the GFMG office space in the attic of Barn A. Patton said the list is very helpful. The total estimated cost to complete the projects listed is $27,000. He said any money spent above the budgeted $9,875 would have to come out of the Port G&A expenses. Patton noted the monthly management fee increase would also have to come out of the $9,875 total. Patton suggested the Board look into the Port's G&A Construction, Repair & Maintenance account as that is the only discretionary amount they have. Painting the Wharf: He said the Board could choose to postpone painting the Wharf building for another year and that would then free up money to accommodate some of the requested projects of the Greenbank Farm. Bryson said he didn't like the idea of postponing all of the painting for another year; he was very concerned about the damage to the west end of the building. He believes that at a minimum, that end of the building has to be taken care of. Patton said that one way would be to paint only that end and then it would be ¼ of the expense for 2008, but it would forestall any additional damage. Bryson said he thinks they definitely need to do that because he is very concerned about the damage if they don't. Weber said she was also very concerned and it is a sheer need. McDonald asked if prep work, etc. was included in the $20,000 estimate and Patton said yes. She asked if there would be a huge difference in the amount of repair work on the weather side compared to the other sides. Bryson and Patton said Yes, and Bryson added that part of it is already exposed. McDonald asked if another estimate could be obtained for just the west end of the building. Weber asked if that could be done before October 2nd and Patton said, Yes. Patton said the Board may want to make a motion stating the Port will not attempt to preserve the entire building in 2008, but will simply preserve the weather or west side of the building in 2008. When the Board has the new proposal for just that one portion of painting, it will free up some money. Patton said the other issue is the low impact park on Front Street. If the Port decided to go after grant money, some money would have to be set aside for matching the grant funds. Patton said the Town is on its way already. Weber said the Board has been talking about the low impact improvement there for some time and she wants to see the Board do it - it's a real need. Bryson noted the Comp Plan advisors wanted to see that, too. Motion to shift funding from painting the Wharf to improving office space at the Greenbank Farm: Patton said he will be publicizing the Preliminary Budget after today's meeting and it would be useful to have a decision from the Board to reduce the line item for the Port's G&A Construction, Repair & Maintenance from $30,000 and move the balance to the Greenbank Farm's Construction Repair & Maintenance line item. Patton said he is especially concerned with people working in the upstairs office space at the Farm and the Board agreed that improvement project should be completed.

ACTION: A motion was made by Bryson and seconded by McDonald to reduce the Port G&A Construction, Repair & Maintenance line item amount of $30,000 enough to pay the $12,500 estimated cost to improve the upstairs office space at the Greenbank Farm.

Michael Stansbury, Treasurer of the GFMG, said they certainly appreciate the willingness and flexibility of the Commissioners to promptly address some of the needs of the Farm. Weber said she thinks the project is a must do and it is a safety issue.

The motion passed unanimously.

Patton said he would revise the preliminary budget to reflect the changes decided upon today and would circulate it to the Board and make it available to the public. Weber asked Patton about the total for the Port expenses, and he said in order for it to be a balanced budget, the expenses would total $377,455. Patton said the Port started this year with $98,000 in Operating Reserves and the plan was to finish the year as close to $100,000 as possible, however there have been many unanticipated expenses over the course of the year and we may begin 2008 with substantially less in our Operating Reserves.

McDonald asked if it would be reasonable to ask Port Handyman Dick Tackett how much work could be completed with the balance remaining in the Port's G&A Construction, Repair & Maintenance budget for 2008 after shifting money to improve the office space at the Farm. Patton said Yes, and he would email the Board Tackett's new estimate to paint just the west end of the building.

ACTION: A motion was made by Weber and seconded by McDonald to accept the 2008 Preliminary Budget in the amount of $377,455 as amended. Motion passed unanimously.

The Board thanked Patton for his work on the budget.

WPPA Small Ports Seminar: Patton said the seminar would be in Leavenworth on October 18th and 19th. He said the seminar is for commissioners and executive directors of small ports only. Weber said she attended the seminar once when she was first on the Board and it was very informative and helpful. She strongly urged the others to attend and said she had tentative plans to attend. Bryson asked if Patton would be going, and Patton said he would like to attend, with the Board's permission. The Board agreed that Patton should attend. Bryson and McDonald said they were not sure if they could attend. Bryson recommended that all of them attend if possible.

Vote on new dues for WPPA: Patton reported that the Board of the WPPA has proposed changing their bylaws to modify the way their dues are calculated. WPPA had been allowing the Port of Seattle and the Port of Tacoma to pay 45% of all their expenses, and all the smaller ports were set up for either $300/year or $600/year depending on their income. The Port of Coupeville paid $600/year. The recalculated formula will result in at least an additional $285 being paid in 2008.

ACTION: A motion was made by Weber and seconded by Bryson to support the increase in dues for the WPPA.

Weber said WPPA has been extremely helpful to the Port and provided a lot of resource people to contact. She said the Port has gotten a lot for the $600/year it has paid.

The motion passed unanimously. McDonald signed the Board's approval of the dues increase as Secretary and Patton said he would forward it to WPPA.

State Audit: Patton said the State Auditor had telephoned the Port office yesterday and indicated they wanted to come to the Port and begin their audit the day after Thanksgiving. The State of Washington conducts such audits every three years. Patton said the Auditor's office holds an entrance session to explain exactly what they are interested in reviewing and they really encourage the Commissioners to attend. He said it would be nice to have the meeting in the Island County Commissioners' Hearing Room, or they could have it in the Port office. Patton said the audit is then followed by a closing session and the State really wants all three commissioners to attend the closing session. McDonald said she would not be able to attend the day after Thanksgiving and added that most people have family commitments for that date. She suggested the State look at a different date and Patton said he would ask them. Weber agreed the day after Thanksgiving would not work. The Board said they would email Patton with alternate days that they would be available, and then he should contact the State and ask them to reschedule the audit accordingly. Weber noted that the State had given them the courtesy of a lead time, because as a general rule they are only required to give 3 days' notice. McDonald asked if the County offices were open the day after Thanksgiving and Weber said they were not. McDonald said she doesn't see why the Port office would not be closed as well, and Bryson said the State and Federal offices are open.

ANNOUNCEMENTS & ADMINISTRATIVE ACTIONS:

Next Port regular meeting: The next regular monthly meeting of the Port's Board of Commissioners will be held at 10:30 a.m. on Wednesday, October 10, 2007, in the Island County Commissioners Hearing Room located at #1 NE Sixth Street, Room B-102, Coupeville, WA.

Monthly Financial Status Report: MacLeod-Roberts submitted the July 2007 financial statement and the preliminary August 2007 financial statement.

ACTION: A motion was made by Weber and seconded by McDonald to accept the final July 2007 financial statement as submitted. The motion passed unanimously.

Approval of Current Vouchers: MacLeod-Roberts 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 Weber and seconded by Bryson to approve by signature the August 2007 vouchers, numbers #510 - #536 for a total amount of $53,786.27. The motion passed unanimously.

Special Meeting: Patton pointed out that as written on the Agenda, a Special Board Meeting has been scheduled for October 2, 2007, at 3:30 p.m. for the purpose of adopting the Final Budget for 2008. The meeting will take place at the Port office.

Tenth Anniversary Celebration: Weber reminded all present that the Greenbank Farm's Anniversary Celebration would take place on September 23, 2007, beginning at noon. The Board agreed they would all be attending the event.

ADJOURNMENT: There being no further business to come before the Board, Weber adjourned the meeting at 12:40 p.m.