Commissioners Present: Benye Weber, Bruce Bryson and Ann McDonald

Others Present: Jim Patton (Executive Director), Molly MacLeod-Roberts (Edwards & Associates), Nathan Whalen (Whidbey News-Times), Justin Burnett (Coupeville Examiner), Tim McDonald and Whitney Webber (Island County Health Department), John Smiggs and Bob Sines (SandS Promotions), Mike Diamanti (Coupeville resident), Wendy Patton (Coupeville resident) 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 ground floor meeting room of the Service Alternatives Building located at 20 NW Front St. 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 September 12, 2007, and the Minutes for the special meeting of October 2, 2007, were available for approval and signatures.

9/12/2007 Minutes: Weber said that page 12 of the September 12, 2007, Minutes needed to be corrected as follows:

2^nd paragraph under MRC: Should read, …on the 1^st and 3^rd Tuesdays of the month and it should be noted the meetings are held only in the Island County Commissioners' Hearing Room and not in the Camano Annex.

3^rd paragraph: Should read, Northwest Straits Commission, not Straights.

3^rd paragraph: All abbreviations should be changed from NSC to NWSC for clarification.

3^rd paragraph, 1^st sentence: The meeting location should be changed to the Service Alternatives Building, not the Island County Commissioners' Hearing Room.

3^rd paragraph, last sentence: Replace all references to NSC with MRC.

A motion was made by Bryson and seconded by McDonald approve the September 12, 2007, regular meeting Minutes as amended. The motion passed unanimously.

A motion was made by Weber and seconded McDonald to approve the October 2, 2007, special meeting Minutes as submitted. The motion passed unanimously.

SPECIAL PRESENTATIONS:

Island County Health Department (ICHD): (Tim McDonald)

McDonald, Director of the Island County Health Department (ICHD), was on hand to present Executive Director Jim Patton with a Certificate of Appreciation in recognition of his leadership work on the Island County Environmental Health Assessment Team (EHAT). Patton was one of the founding members of the team over five years ago. The team is now merging with the Community Health Advisory Board. EHAT was charged with the task of assessing the needs of the community regarding environmental health issues. The team started out with over 150 different issues and had 21 members plus staff. Using an excellent process, the team was able to narrow the focus to two main issues: illegal dumping & littering and the lack of walkable routes in the county. The EHAT led the way and showed ICHD how to resolve those issues. McDonald listed several of EHAT's accomplishments, including a solid waste voucher proposal, two well-attended public forums, litter surveys that identified hotspots in the community, and Litter and It Will Hurt signs to address the illegal dumping & littering issue, and trail signage and pocket guides to address the lack of walkable routes issue.

McDonald said that from the beginning, Patton had exercised outstanding leadership on the EHAT. McDonald said he truly appreciated all of Patton's work. He noted that Patton had chaired the Illegal Dumping section and was responsible for that group's Action Plan, and said Patton's work has extended the capacity of ICHD to do their work, especially regarding illegal dumping. Patton served as liaison between EHAT and the Island County Board of Health and McDonald said he did an excellent job.

All present applauded as Patton received the Certificate and thanked McDonald. Patton said it meant a great deal to him and added that it had been a joy to work with McDonald and his staff for the last five years.

McDonald concluded his presentation by inviting all present to attend the Forum to Address Walkability in Island County that will be held Friday, December 7, 2007. During that Forum, Patton will be presented once again with the Certificate of Appreciation.

Greenbank Classic Car Museum Proposal: (John Smiggs)

John Smiggs and Bob Sines of SandS Promotions were on hand to discuss their proposal to have a Whidbey Island Classic Car Council and Museum at the Greenbank Farm. Their summarized proposal is attached to these Minutes. Smiggs said there has been a lot of participation in the annual Greenbank Car Show and believes there is significant interest in forming an island classic car club and having a permanent building for a museum that could also be used as a meeting place for car clubs. The building would be designed in such a way that the cars could be displayed 24/7, and the displayed car collection would change on a regular basis. The club would be a non-profit group and would function in a way similar to that of a yacht club at a marina. Smiggs said that a car club and fundraising go together, as demonstrated by the recent Greenbank Car Show that was put on as fundraiser for the Alzheimer's Society of Washington. He said events like car shows draw a diverse crowd and they have activities for men, women and children available.

Patton said he had informed Smiggs that the Port has kicked off its Master Site Plan and explained that there would be four focus groups. Smiggs' proposal would fit into more than one of those four groups, so Patton had suggested to Donna Keeler, the Master Site Plan Coordinator, that Smiggs be invited to make his presentation to one or more of the focus groups.

The Board and Tom Baenen, president of the Greenbank Farm Management Group (GFMG) agreed the proposal was interesting and the timing was very appropriate since it can be included in the Master Site Plan process.

Bob Sines of SandS Promotions added that they looked at the proposed museum building at the Farm as a long-term drawing factor. It could provide another reason to come to the Farm and stay longer during the visit. Sines said by rotating the collection of cars, people would be encouraged to visit more than just once.

Weber thanked Smiggs and Sines for their presentation, and the Board referred the proposal to the Master Site Plan focus groups and told them Keeler would be contacting them.

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: Patton reported fuel sales have diminished as fuel prices have gone up. Mack Funk, the Harbormaster at Oak Harbor, said the same thing is happening there. Patton reported fuel sales for October were less than $2,000, compared to over $5,000 in October of 2005 and $4,500 in October of 2006. Moorage revenues have equally diminished, and totaled just $190 for the month of October. Fuel purchases: Patton noted that the Port's operating reserves were dangerously low in October and all fuel purchases had been suspended as a result. Patton reported that as of yesterday morning there were 400 gallons each of diesel and gasoline in the tanks. The intention is not to buy fuel that won't be sold before the end of the year. The needs of the Port's top customer, Penn Cove Shellfish, are being closely monitored and the Port will purchase just enough fuel in order to meet their requirements. Buoy replacement: Patton reported the buoy that was lost during the storm had been found at Lovejoy Point, and he and a friend had retrieved it. That buoy is being stored until it can be reinstalled. The State of Washington uses exactly the same buoys, tackle and anchor arrangement and they have also lost several buoys in storms. Patton said the weather conditions at the Port of Coupeville are probably more strenuous on buoys and tackle than anyone had anticipated.

Status of rental spaces on the Wharf - occupation by KWPA Radio: Patton presented the Board with a report showing the sign KWPA Radio would like to put up on the marquis and on the fence. That report is attached to these Minutes. KWPA would like to get the Board's feedback on the proposed sign. The Board responded that they liked it very much, and Patton said he would let KWPA know they could proceed subject to the approval of the Town of Coupeville's Design & Review Board. Weber asked if the radio station was operating in the space yet and Patton said they were not. KWPA Radio has made pretty good progress with equipment purchases but the rest of it is moving along pretty slowly.

Status of progress on previously discussed tasks: Patton said there were two items not on the agenda that were discussed at the previous meeting, and he reported on the status of those. Estimate for partial painting of Wharf: As instructed by the Board, Patton had asked Port Handyman Dick Tackett to provide a new estimate for painting only a portion of the Wharf and the Port Office building. Tackett gave a verbal estimate of $12,000 to paint the Port Office building and the west and north side of the Wharf building. Weber asked if that was budgeted, and Patton said that it was. Patton said he would circulate Tackett's written estimate to the Board as soon as he receives it. Work with Coupeville's Mayor Nancy Conard to obtain grant money: At the Port's last regular meeting, the Board had instructed Patton to contact Conard and work with her regarding the possibility of using some Low Impact Development grant money for some work at the park located at the entrance to the causeway. Conard is on leave until November 19^th, so Patton said he had not had the opportunity to discuss it with her. Patton noted that Conard had been very helpful last year in providing the gravel for the potholes there last year. Unfortunately, while the contractors were working on the big water pipe near the park they broke the pipe which then flooded the Port's area and washed all the new gravel down to the cove. Patton already has his claim into the Mayor's office to replace the gravel.

Status of work on the Port office basement - new electrical wiring and heat detector: Patton reported the basement is now well lighted, more than half of it has a concrete deck, the concrete wall and buttresses are up, the new beams are in and everything is connected with steel angles. The work for the replacement and wiring of the circuit breaker panel may happen in the month of December and the Port will then pay for it in January. The same is true regarding the replacement of the useless smoke alarm with a required heat detector that will be wired to the Port's fire alarm system. It is fortunate that the electrician was not able to schedule the work any sooner since the Port did not have the money in the Operating Reserves to pay for it in October.

Status of the Port's Operating Reserves - effect of increased debt service on bonds: Patton explained that over the last 10 years, the annual debt service on the bond used to purchase the Greenbank Farm was an even amount of $100,100. Weber had asked for information regarding the actual repayment of the bonds, and Patton had obtained the repayment schedule from the Island County Treasurer. The schedule is attached to these Minutes. Patton noted that beginning in 2008, the annual total amount will exceed $100,100. Therefore, the Port will be paying a debt service larger than the authorized additional levy. Patton met with Chief Deputy Treasurer, Lois Rusher, and Assistant Tax Assessor, Dan Jones, and they agreed the appropriate action was to increase the authorized levy to repay the bonds to match the actual numbers on the repayment schedule.

Preparation for the State Accountability Audit - entrance meeting December 3^rd: Patton reported that it would be a Special Meeting and he would see that the agenda was published and MacLeod-Roberts would be present to transcribe the Minutes. Since Harbormaster Long Bechard is the only person to handle cash, Patton has asked her to attend the special meeting as well. Patton noted that it had been three years since the last audit and there were no issues then. He said the Port is prepared for this audit and should be in pretty good shape. He added an exit meeting would be held a month or so after, but that would be scheduled later and might be done during a regular public meeting.

Report on WPPA Small Ports Seminar: Patton reported that it was once again an excellent, well-run, efficient seminar providing the opportunity to learn. Pat Mason, the Senior Legal Consultant for the Municipal Research and Services Center (MRSC), was one of the speakers. Mason informed all the Port Executive Directors and Commissioners that, as of last year, the MRSC is now available to them as well as other municipal entities. At the end of Mason's briefing, Patton was able to hold his hand up and thank Mason very much because the Port of Coupeville was the very first port to utilize their services. The Port had sought and obtained excellent advice on the Conservation Easement from the MRSC. Patton said Ginger Eagles, a former Olympia lobbyist, also led a session at the seminar. She divided the attendees into groups and tasked them with drafting a strategic plan for a mythical port named Centerville. The groups were given three options. Once the option was selected, Eagles then presented each group with a letter that advised them of a serious problem that might make the strategy option impossible. In Patton's group there was a wetland in the middle of the area where they wanted to do an Industrial Development District. The group then had to rewrite their plan. It was an excellent program and everyone loved it. Patton said the seminar was definitely well worthwhile. Weber agreed and said the seminars have always provided valid information that can be brought back to and used within the local community. She said it was well worth the effort, time and money spent. Patton said one interesting thing he learned was that if you have a wetland and it is in the way, removing it can be mitigated by replacing it with another wetland in a different area. That information might be useful in addressing the small wetland area on Wonn Road where Island Transit proposes a new Park and Ride.

Status of Comprehensive Plan initiatives - progress on Marine Education Center Plan and Master Site Plan for the Greenbank Farm: Marine Education Center (MEC): Patton referred the Board to the 11/6/2007 letter from Washington State University (WSU) Extension in response to the Port's 6/11/2007 letter of invitation to participate in the MEC Plan. The response letter is attached to these Minutes. It is the first of what will be periodic responses in that area. Patton explained the MEC work would be done concurrently with the Master Site Plan activity for the Greenbank Farm. WSU-Extension is providing Graham Johnson as coordinator, and Patton will be working closely with him. Weber emphasized that WSU is leading the effort, but other groups will be identified and will work in conjunction and cooperation with WSU on the expansion of the MEC. Patton agreed and added that WSU has demonstrated a great outreach capability and the Port would be able to take advantage of that at no cost to the Port. Master Site Plan (MSP): Patton said he was pleased that the public briefing held at the Greenbank Progressive Club on November 10^th was well attended; there were 50 people and 24 of them indicated they wanted to participate in focus groups. Patton was also impressed with the knowledgeable cross-section of people who attended - there were environmentalists, commercial people, farm volunteers, stakeholders, tenants, and GFMG Board members. Based on the success of the first briefing, Patton suggested holding a second briefing in the Town of Coupeville prior to year-end. The Board agreed it was a very good idea.

ACTION: A motion was made by Weber and seconded by McDonald that the Port of Coupeville hold another public briefing on the Master Site Plan for the Greenbank Farm in Coupeville, and the meeting would take place in the evening. The motion passed unanimously.

Patton said he would forward to the Commissioners the list of dates that Keeler would be available to attend the briefing and he would coordinate their responses and schedules to ascertain the date via email. After the date is determined, he will reserve the Coupeville Recreation Hall for the briefing.

Greenbank Farm Management Report: (Baenen) Greenbank Farm Management Group (GFMG) President Baenen was on hand to answer any questions the Board had regarding the October Farm Report he previously submitted via email. The Finance Report for September 2007 for the Managed Property was reviewed with Commissioner Bruce Bryson and Port Executive Jim Patton on October 23rd. There were no issues.

The Farm's office, shops and café will be closed Tuesdays during January, 2008. This trial closure has been agreed to by all the various parties involved. At present the Farm is only closed 2 days each year. Staffing for 7 days a week is a hardship on the small businesses the Farm hosts.

The Board has signed a Lease/Rental listing agreement with Tara Properties for the vacant space in Barn C. The agent is aware of the specific requirements to be met by any sub-tenant seeking a term longer than one year.

The Market Consultant, Peg Tennant, hired by the GFMG Board in July, made her report on Market Operations, July through September. She provided a well-reasoned report with a number of suggestions for improvement in the Farmer's Market operation. The Board will continue to work with Peg on the implementation of many of the suggestions she made.

The 2007 Farm Tour, headquartered at Greenbank Farm, October 5 and 6 was very successful. Plans of the sponsors, WSU Extension and the Soil Conservation District, for the 2008 Tour are already being made.

The Oktoberfest fundraiser on October 13^th was a success. Plans for an annual Oktoberfest are being made.

The First AnnualBOO in the Barn Halloween party went very well. It brought many families to the Farm and its success helped the Farmers Market in the Barn set records. Two tour buses filled with Honeywell employee families from the mainland attended. They gave the event, the Farm staff and volunteers high marks. To quote the Honeywell organizer, The food was lovely, and we could not have asked for a nicer setting. Thanks for all your TLC for this event. It was delightful. 65 children and 1 alpaca wearing a pink wig entered the costume contest, played games and decorated pumpkins donated by Board Member Kathy Habel.

The Board did not have any questions and thanked Baenen for preparing the report. They were very appreciative of receiving the report via email prior to the meetings. Weber asked if Baenen had anything to add, and Baenen responded that the Whidbey Weavers' 2-day show and sale set all time sales records and was very well attended. They will be returning next year.

Patton noted that the State Auditor would probably be interested in the Port's monthly collection of leasehold tax from the GFMG for its imputed rent as well as leasehold taxes on the subleases at the farm.

Regarding the vacancy at the Farm, McDonald asked Baenen if the GFMG had considered approaching a real estate agency as a possible tenant. Baenen explained that leasing to a real estate agency would not be consistent with the mission of the Farm. The Farm and the Port both have the mission to foster new business and help in the start up of a new business by subsidizing their rent. McDonald thanked Baenen for his response.

COMMITTEE REPORTS:

Marine Resources Committee (MRC): (Weber) Weber provided the draft Minutes from the MRC's meeting on 10/16/07 and the Agenda for the meeting on 11/6/07. Both are attached to these Minutes.

San Juan Islands National Wildlife Refuge: At the November 6^th meeting, Kevin Ryan from the U.S. Fish and Wildlife Service spoke about the activities in the San Juan Islands National Wildlife Refuge, including Island County's Smith and Minor Islands. Weber gave Patton the brochure she had and asked that he share it with the other Commissioners. She reported that she had invited Ryan to attend one of the Port's future meetings and provide additional information about the Refuge area.

Leadership Reports were presented.

Grant projects were discussed. The following developments were reported:

The funds for the installation of Camano Island's common panels have been disbursed to the Friends of Camano Island Parks.

For Clinton Beach, the MRC is awaiting action by the Port of South Whidbey (PSW) to finalize specifications for manufacture of the hardware for those panels. Weber said the Port of Coupeville did not give any money toward the Clinton Beach project, but the PSW has given them quite a few dollars. The committee soliciting funds for the panels is asking $3,000 per panel and the PSW had no objections to supporting that project.

The second draft of the local panel at Maxwelton Beach is being worked on. The Maxwelton Community Club has approved $1,500 toward that cost. The PSW is also making a contribution of at least $1,500.

The PSW has indicated they want to pay the entire cost for the local panels at Possession Beach at Freeland Park but their resources are currently tied up with the Langley Marina.

Sarah Schmidt has been distributing the panels to the various entities on Whidbey Island, and the MRC is currently searching for financial partners for the additional panels. Regarding the Coupeville Wharf signage, the grants require the collection of data from the public about the effectiveness of the panel. The MRC is gathering that information. Weber also included a flyer of one of the panels titled Is Useless Bay really useless? and it is attached to these Minutes.

Central Whidbey Chamber of Commerce (CWCOC): (Weber) Slate of Officers: Weber reported the CWCOC met on November 8^th and presented The Official Slate of Candidates for the 2008 Officers and Directors, which is attached to these Minutes. The nominees were all elected. Changes to sales tax collections: The guest speaker at the meeting was Jim Bustle from Port Angeles. He is a Field Officer with the Department of Revenue (DOR). Bustle said that by July 1, 2008, the DOR will implement collecting taxes based on where the product is delivered. Christmas in Coupeville: Weber noted that the event is sponsored by the Town of Coupeville, the Whidbey Examiner and the CWCOC. A flyer listing the scheduled events is attached to these Minutes.

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

SMP: Bryson said there was limited information from the Town of Coupeville on the SMP right now because the Town is in the process of preparing the draft plan for public review. It could be available as early as next week. Bryson said the Town is working diligently to get that ready.

Greenbank Farm Liaison: Bryson said the meeting on October 23^rd was productive and short. It was business as usual. Weber said she wanted to thank Bryson, Patton, Baenen and GFMG Treasurer, Michael Stansbury, for their work and she appreciates the great working relationship the four of them have.

Council of Governments (COG), Regional Transportation Policy Organization (RTPO), Economic Development Council (EDC) and WPPA Legislative Committee): (McDonald) McDonald said she would not present those reports today, but will submit written reports shortly.

NEW BUSINESS:

Department of Natural Resources ruling re: Non-water dependent status of Wharf rentals - higher annual rent: (Patton) Patton referred the Board to their copies of the letter dated November 2, 2007, from Don Olmstead of the Department of Natural Resources (DNR). The letter is attached to these Minutes. After Olmstead visited the Port of Coupeville several months ago, he was very dubious about the water dependence of any of the rental spaces on the Wharf. As requested, Patton provided Olmstead with copies of the leases and an updated floor plan of the Wharf. Olmstead went over them very carefully and determined that none of the three Wharf tenants are water dependent, so the Port must pay DNR rent for the square footage of those spaces. The fuel dock, mooring floats and the breezeway are considered water dependent or a general public access area so DNR does not charge rent for those areas. Patton calculated the change in rent based on Olmstead's determination and that information is attached to these Minutes. He noted the result is that the new annual rent is more than twice what it has been. Patton will adjust next year's budget accordingly, but the Port is going to have to eat the additional money for this year. Although the second half of the levy is coming in now, at the end of the year the Port's Operating Reserves will be significantly lower than the $98,000 the Port started with at the beginning of the year. Patton said he didn't know the exact ending balance but would present his report with graphs available for the Board at the next regular meeting.

Resignation of Commissioner Bruce Bryson: Bryson announced he is resigning his position as Commissioner for District 1 effective December 31, 2007, for personal reasons. He read aloud the announcement to that effect that he previously emailed. Weber said it had been a pleasure working with Bryson and he would be missed. McDonald said she felt the same way and said it had been such a pleasure to have the four of them (including Patton) be a team. She said they had been able to very wisely manage the business of their constituents. Bryson said it had been a pleasure to work with all of them, and he applauded Patton for his efforts in his position as Executive Director. He said his best thoughts and intentions stay with all of them as they go on ahead. Weber and McDonald regretfully accepted Bryson's Letter of Resignation.

Weber said, after receiving Bryson's email, she had requested that Patton look up the laws and regulations relating to port districts' replacement of commissioners with unexpired terms. The vacancy to be filled is for a period of two years as Bryson had already served four years of his six-year term. According to RCW 42.12.070, …a vacancy on an elected non-partisan governing board of a special purpose district where property ownership is not a qualification to vote, a town or a city or other than a first-class city or a charter-code city shall be filled as follows under the provisions of law. Where one position is vacant, the remaining members of the governing body shall appoint a qualified person to fill the position. Weber also read, As approved in RCW 29.15.190 and 29.21.410, each person who is appointed shall serve until a qualified person is elected at the next election at which a member of the governing body normally would be elected, that occurs 28 or more days after the occurrence of the vacancy. Weber said the Port of Coupeville would follow the same procedure the Island County Commissioners used when replacing Commissioner Mike Shelton following his resignation. Weber said the Port would notify the press of the vacancy and encourage qualified individuals within the District 1 boundaries to apply for the position by providing a short bio to the Port office. She said the Board needed to come up with a deadline date for the receipt of the bios and establish a time for public review. The applicants could then attend the next regular meeting and the Board could ask them questions at that time. Baenen asked for clarification regarding the applicant's location and Weber explained that the applicants would need to be residents of Port of Coupeville District #1, the precincts of which are Coupeville #1, Coupeville #2 and Central.

Patton suggested conducting the candidate interviews at the next regular meeting on December 12^th. Commissioners Weber and McDonald could then go into Executive Session to select the replacement. They would then return to the public meeting and announce their selection. Patton said that way the individual would have one month before the next regular meeting and would have the opportunity to accompany Bryson on his last visit to Greenbank Farm as the Liaison. Patton added that advertisement of the position could begin immediately. Baenen asked for clarification regarding the term: Would the individual serve only until the next election in November 2008, or would they serve for two years? Patton said they would serve for two years, for the remainder of the unexpired term.

Weber said the December 12^th meeting would work well, and added that she wanted the process to be very open and the public should have the opportunity to meet the applicants. She asked Patton to make sure the Island County Commissioners' Hearing Room was reserved, and he said it was but he would find out whether another group would be coming in after and therefore limit the length of the meeting. If that is the case, Patton will reserve the Coupeville Recreation Hall instead.

ACTION: A motion was made by McDonald and seconded by Weber to conduct candidate interviews and select the replacement for Commissioner Bryson's position as Port of Coupeville District #1 Commissioner during the next regular meeting of the Port's Board of Commissioners on December 12^th, 2007. The motion passed unanimously.

Patton was instructed to advertise the vacancy and solicit receipt of the bios to the Port office by December 7, 2007.

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, December 12, 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 final September 2007 financial statement and the preliminary October 2007 financial statement.

ACTION: A motion was made by Weber and seconded by McDonald to accept the final September 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 Bryson and seconded by Weber to approve by signature the October 2007 vouchers, numbers #565 - #589 for a total amount of $32,673.98. The motion passed unanimously.

ADJOURNMENT: There being no further business to come before the Board, Weber adjourned the meeting at 12:10 p.m.