Commissioners Present: Benye Weber, Ann McDonald and Marshall Bronson

Others Present: Jim Patton (Executive Director), Molly MacLeod-Roberts (Edwards & Associates), Tom Baenen (GFMG President), and Graham Johnson, WSU Beachwatchers.

Call to Order: The regular meeting was called to order at 10:30 a.m. by Commissioner Weber in Room B-102, Island County Commissioners Hearing Room, located at #1 NE 6^th Street, Coupeville, WA, followed by the Pledge of Allegiance.

APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING:

There were no Minutes available.

SPECIAL PRESENTATIONS:

Motion expressing support for Limited Proposition (unnumbered) on General Election Ballot, November 4, 2008 (Board President Weber): On behalf of the Board, Commissioner Weber read the proposition requesting approval for an increase in the Port's annual levy (on file). Weber invited the public to come forward and express views in support of or in opposition to the proposition. No one came forward.

ACTION: A motion was made by Weber and seconded by Bronson to support the proposition on the General Election Ballot.

Bronson asked if the wording regarding the 1% annual levy increase in the proposition was necessary, and Patton explained that all of the wording is required and was approved by the County Prosecutor's Office for the ballot and cannot be changed.

Patton informed the Board that according to the Public Disclosure Commission (PDC), it is lawful for the Board to urge voters to support the proposition in addition to expressing their own support for it. He noted that they could do so in a separate motion if they chose.

Weber called for a vote and the motion passed unanimously.

ACTION: A motion was made by Bronson and seconded by McDonald that the Board strongly urges the public to support the proposition as presented. The motion passed unanimously.

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 activities: Patton reported that a little over 1,000 gallons of fuel was sold in August, 2008, which is about 75% of the amount sold in August, 2007 and only 1/3 of the amount sold in August, 2006. He said that it is clear boaters are buying less fuel due to higher fuel prices. However, moorage revenue for August was $2,400 and that is about 2/3 of the amount collected in previous years. Patton noted that there are more sailboats and fewer powerboats mooring today than in the past; a reflection of the increased cost of fuel. Patton reported that fuel inventory is at 800 gallons of diesel and 250 gallons of unleaded gasoline. Most of the diesel fuel is allocated to Ian Jefferd's boats at Penn Cove Shellfish..

Auction and disposition of abandoned sailboat, Soul Mate: Patton explained the auction had been advertised for about 6 weeks, in the Whidbey Examiner, on the Port office door and on the Wharf. He reported receipt of two bids - both via email. The first bid included the full name and address of the individual, and the bid amount was $53.99. The second bid of $1,330.00 did not have any of the individual's contact information other than an email address. Patton said he has emailed the individual and requested that information. He suggested that the Board make a decision to award the sailboat to the highest bidder, conditioned upon the individual providing their name, address and telephone number within a specified time period.

ACTION: A motion was made by Weber and seconded by McDonald to award the sailboat and equipment to the highest bidder, provided the bidder supplies the required contact information by the end of the week.

Patton suggested the following be added to the motion: In the event the information is not received by the end of the week, the sailboat and equipment will be awarded to the next highest bidder.

Bronson disagreed with the change, because he felt the bid of $53.99 is absurd. Weber agreed that she would personally pay that amount and donate it to a group in need of a sailboat. McDonald said once they advertised it would be auctioned to the highest bidder, they legally have no other choice and Patton agreed.

The Board agreed and the motion was amended to include the language as Patton suggested. Weber called for a vote and the motion with the additional language passed unanimously.

Annual rent payment to Department of Natural Resources (DNR) and status of negotiation of new moorage agreement: Patton referred the Board to the calculations for the new moorage agreement, which serves as an invoice and is included in today's vouchers. He pointed out that the new amount is significantly less than the previous year's agreement (by $3,100), and explained it was due to the Island County Assessor's office reducing the value of the upland parcel by $34,000.

Status of Comprehensive Plan Initiatives:

Progress on the Passenger-only Ferry: Island County Commissioner (ICC) John Dean has assigned staff to determine how much the County spends transporting employees between Camano Island and Whidbey Island. Patton explained that there are 4 independent contractors anxious to provide a passenger-only ferry between the islands, and all 4 would like a start-up subsidy. Both ICC Dean and Phil Bakke have informally supported a passenger-only ferry and agreed a subsidy would be fair. The ICC has charged Mike Morton with coming up with current information as to monthly cost based on the same methodology used in the 1995 study. Once ICC has the information, they would like to host a meeting on the issue with the Port of Coupeville. Weber asked if Morton had a deadline, and Patton said the ICC is looking at 30 days.

Progress on the Marine Education Center (MEC): MacLeod-Roberts read aloud the letter (on file) dated August 30, 2008, from Don Meehan, Director of Island County WSU Extension. Graham Johnson of WSU Beachwatchers was on hand to answer any questions the Board might have regarding the letter. Weber thanked Johnson for leading the project and for all his patience and effort in attending all the meetings. She said she was well pleased with the response, and the cost and timeline of the MEC is well put in the letter. Regarding the limited space available, Weber noted that there is an existing program in the breezeway on the Wharf, conducted by Beachwatcher representative Sandy Dupernell. Weber said the Penn Cove Water Festival has also used the space in the breezeway, and the Orca Network and the museum conduct walking tours on the beach and along Front St. Although they could do more to advertise those, she asked Johnson if there was any space available to do anything else in light of the heavy activity that already exists. Johnson said they had wondered about the amount of activity on the Wharf. He explained that they had not been aware that the museum had a walking tour until August. Many people familiar with Coupeville were stunned to learn that for a fee, the museum provides a guided tour and that Ebey's Reserve provides a self-guided walking tour of the area.

Johnson explained that the group had discussed creating a Passport to Coupeville similar to Costco's Passport to Savings brochure, where individuals could have their passport stamped at various points of interest in the area. He said Ellensburg also has a walking tour with a beautiful brochure that includes a historic map of Ellensburg. A brochure that encouraged the public to go out on the Wharf would be helpful.

Weber said she accepts the letter as a recommendation as to what could be done. She added that she personally opposes changing the name of the Wharf for corporate sponsorship. Bronson said the sponsorship could be very low key, without changing the name from Coupeville Wharf. He said the MEC is a good program and a nice idea, but it is something the Port will have to grow into rather than adopt all at once. Weber agreed that the MEC is a vision, and the letter's recommendations are the presentation of that vision based on input from the public.

Weber wondered whether another piece of literature to advertise what already exists is really necessary. The Orca Network, the Beachwatchers, the Marine Science Center, the Historical Museum and the Penn Cove Water Festival all have activities at the Wharf for adults and children.

Bronson suggested having an exhibits priority - agree which type of exhibit should be given 1^st priority as the most valuable, determine how much space it would require and how much funding would be needed. The MEC would have to be done incrementally.

Weber suggested that the displays on the Wharf and the kiosk should be rotated. Patton noted that the Port has asked the Beachwatchers to refresh the display on the kiosk, as it has been there for more than 3 years, and Sarah Martin has been tasked with that responsibility.

Weber said the distillation of comments and suggestions confirm the public's interest in creating a Marine Education Center eventually. Bronson said the current displays refer only to Orcas, and the whole marine environment should be addressed. The Board asked Johnson to convey their request to WSU-Beachwatchers to refresh the kiosk and reconsider the theme. Johnson explained that the whole focus of the exhibits is sea mammals, and Samson, a Stellar sea lion, will be added early next year. Johnson said the existing static exhibits are nice, but the need for interactive activity really stood out. One comment was that it should be called a Marine Experience Center, with the emphasis on doing and not just looking. Weber agreed and explained that she had borrowed interactive displays from government agencies and they were very popular with both children and adults. Johnson agreed and added that many government agencies create displays with the intent that they will be traveling exhibits. He said he'd love to put another exhibit in the breezeway for rotation, in particular one on plastics.

On behalf of the Board, Weber directed Patton to send WSU-Extension a letter thanking them for their dedicated time, effort and energy, and told Johnson that the Board really appreciates all of his work.

Progress on the Greenbank Farm Conservation Easement: Patton referred the Board to the letter that Senator Mary Margaret Haugen had received from the Attorney General's office as an interim response to the Senator's letter requesting an opinion as to whether the Port can transfer its development rights on any portion of the Greenbank Farm to the county.. The letter stated, The goal is to process informal opinions within 60 days, so we estimate we will complete this opinion by mid- to late September. Patton said that if the AG gives the green light on the transfer the Port will need to know how a Conservation Easement would affect the bonds with which the Port purchased the farm. Since Michael Stansbury, the GFMG Treasurer, previously worked at Foster Pepper, the bond counsels, he is working on a cost estimate for Foster Pepper to do the research to determine how the bonds would be affected.

Progress on the Master Site Plan: Patton said Keeler has held one meeting since returning from vacation - with the Commercial focus group. He and Bronson both attended and it was a very effective meeting. Rob Schouten's artist's concept of the new, multi-use building at the farm was presented to the group for the 1^st time. Architect Susan Lindsay-Cohen is working on the drawing and adding specifics. Patton said Keeler has planned another plenary of all 4 groups for the 1^st week of October, and the focus will be the multi-use building. The goal is to have a draft proposal to Senator Haugen by the end of October with specifics about square footage, cost, purposes, etc.

Preparations for the Levy Lift Request:

Fact sheet printing and mailing costs and schedule: Patton referred the Board to the fact sheet in their folders that was reviewed by the Public Disclosure Commission (PDC). He explained that he chose the question and answer format because it allows for more information to be imparted than rolling one declarative statement after another. Patton asked the Board for approval of the fact sheet and authorization to make it public.

ACTION: A motion was made by Weber and seconded by McDonald to approve the fact sheet as written.

ACTION: A motion was made by Weber and seconded by Weber to amend the motion to include …and direct the Executive Director to circulate the information to the public. The motion to amend passed unanimously.

Weber called for a vote and the amended motion passed unanimously.

Patton noted that while the PDC told the Port that it should not publish the fact sheet as a paid advertisement in the local newspapers, they did encourage the Port to distribute it as a mailing, as various other entities have done. Patton said the cost of preparing an attractive, single mailing would be between $5,000 and $6,000. He noted that the PDC allows only one mailing, and explained there are 7,085 registered voters in the Port district. Graphic artist Carol Moliter will prepare some drafts by mid-month for Board review. If the Board approves the mailing in mid-September, it can be produced and ready for mailing by the 10^th of October when the Voter's Pamphlets are mailed.

ACTION: A motion was made by Bronson and seconded by McDonald to approve funds not to exceed $6,000 for preparation and publication of a mail-able fact sheet and for its distribution.

Weber asked if it could be done for $6,000. Patton explained that $6,000 is enough for a postcard type of mailing without envelopes. It might not be enough for a tri-fold type of mailing.

The motion passed unanimously.

Advertising for Pro & Con advocacy committees: Patton said that printed instructions from the County Auditor's Election Office said that the Port is entitled to appoint Advocacy Committees, and legal ads were placed in the newspapers requesting individuals volunteer to draft statements in support of and in opposition to the ballot proposition that would be included in the Voter's Pamphlet. Patton reported that those two statements and the Port attorney's explanatory statement were both submitted to the county prior to the deadline. He added that half a dozen people have approached him expressing their interest in being on an Advocacy Committee in support of the proposition, but no one has volunteered to be on an Advocacy Committee in opposition to the proposition. Patton said the Port had made a good faith effort to seek out both pro and con advocates by publishing the request for volunteers.

ACTION: A motion was made by Bronson and seconded by McDonald to direct Executive Director, Patton, to appoint volunteers to the pro and con Advocacy Committees on behalf of the Board of Commissioners. The motion passed unanimously.

Possible press conference: Patton explained that the Port is entitled to hold a press conference, and he recommends they do so and schedule it closer to the election date as a Special Meeting. The Board agreed with his recommendation and scheduled a Special Meeting on October 21^st at 10:30 a.m. for the purpose of holding a press conference. Patton said he would also prepare a written Press Release.

Request for approval of changes to sublease policies at Greenbank Farm: Patton reported he has not yet received the draft of the proposed sublease changes from the Greenbank Farm Management Group (GFMG). GFMG President, Baenen, explained that GFMG is reviewing all the lease documents and redrafting all of them, with the intention of presenting them for approval with one motion. He added that the changes regarding Artworks Gallery's lease have been implemented and the first tenants' meeting was held last week. It was an excellent meeting, and Baenen said there is a revitalized spirit among the retail merchants, etc.

Greenbank Farm Management Report: (Baenen) Baenen was on hand to answer any questions the Board had regarding the August Report he previously submitted via email and which is included in these Minutes as follows:

A written debrief of all Staff, Board and Volunteer Organizers of the 2008 Loganberry Festival was conducted. The event, even with a washed-out Sunday afternoon, was financially equal to 2007's Festival. This year's theme, Artists in Action, was popular. To maintain the Festival in its present format will probably require a parking fee or entrance ticket charge in the future.

The Highland Games reported a record year and plans to be back next year.

The GFMG Board of Directors has staff preparing cost breakdowns for Short-Term Rentals of the Farm facilities. Costs continue to increase and rents are dropping father behind.

The search continues for a designer/architect to work on office space development of Barn A's Loft area. We are also looking for a volunteer to plow and plant a cover crop on the former Christianson seed plot. The major herd of Alpacas has been moved and two (2) months holdover rent remains uncollected. The owner of a smaller herd has rented one of the padlocks for the month of September. The I Remember When Antique Shop will close September 30^th. A search for a tenant has started. It is possible a comparable art-oriented business or gallery will be found.

The 2008 show by the Quilters on the Rock was held on the 23^rd.

The highway sign announcing the Farm is almost ready for painting and the addition of the wine barrels and the billboard. Staunch and generous Farm volunteer, Jerry Mercer, is rebuilding the cover over the antique Farmall tractor. It will be a big improvement in one of the first sights visitors to the Farm see. The Labor Day holiday and a tight schedule have pushed the July financial reviews of Managed Property to September 2, 2008.

Weber thanked Baenen for his report, and added her agreement that it is important and necessary for GFMG to review the short-term leases in order to at least break even. Baenen pointed out that the 8 acres that were formerly leased to Alf Christianson Seed Company provided rental income, but now the Community Supported Agriculture (CSA) Project has proposed using that acreage for its first year base and they will not be paying any rent. They plan to follow with an additional 10 acres. Baenen explained that is all part of the focus the farm should have, but none of it is generating any money and the costs are still there.

Baenen said the Washington Sustainable Food & Farming Network has arranged for some interim funding to begin their project while they wait for their grant (which has been stalled), and he will meet with Maryon Attwood and others on Thursday to discuss where they go from here. The group requested use of an office, telephone and computer, but the GFMG told them they do not have any available and pointed out that they had not offered anything to the group. Baenen said the GFMG has made it clear to the group that neither the Port nor the GFMG will reimburse the group for any of their costs. Patton encouraged at least one Port commissioner to attend the meeting at the farm on Thursday, September 11^th, at 1:00 pm., and McDonald said she would attend along with Patton (Bronson, the Port's liaison with the farm, will not be in town).

Baenen said WSU has suggested that the farm become a training center for market gardeners, and that would be something else that the Port would have to consider as it is outside of the GFMG's purview. He added that the CSA Project could possibly rent the small room next to the main meeting room in the Jim Davis house as an office, with only minor modifications to the building such as replacing a window with a door.

Baenen praised the job that volunteer Jerry Mercer did in building the cover for the Farmall tractor and replicating the sign on the highway. Weber agreed Mercer is a wonderful volunteer and supporter of the Farm. She thanked Baenen for his report.

COMMITTEE REPORTS:

Marine Resources Committee (MRC), Northwest Straits Commission (NWSC) and Central Whidbey Chamber of Commerce (CWCOC): (Weber) MRC: Weber showed the Whidbey News-Times article and photo of the MRC meeting at Cornet Bay. The next MRC meeting will be September 16^th in the Island County Commissioners' Hearing Room at 3:30 p.m. They will resume meeting twice a month in October. She said there was also an article in the paper regarding Oak Harbor's project in a wetlands area and the new beach trail. The MRC worked with the city and their environmental program director on display signs for the wildlife in the area. NWSC: Nothing new to report. CWCOC: Weber said the next meeting is Thursday, September 11^th at 8:00 a.m. Penn Cove Water Festival: Weber said they have submitted their application to Island County for the 2% grant money. She said the county has provided some money to the Festival for many years and they hope it continues. The Festival continues to focus on having Native Americans provide the entertainment at the Festival.

Council of Governments (COG): (McDonald) Affordable Housing: McDonald said the COG discussed the follow-up to the Affordable Housing Summit that Island County Planning Director Jeff Tate will be spearheading. They will need to determine what the needs are, what housing exists, and look not just at home ownership but rentals as well. Donna Keeler will be available to work on the project after January 1^st. Sustainability Resolution: McDonald said COG has hopefully made the last revisions to the Sustainability Resolution, and Weber and Bronson acknowledged they had seen it. RCEDF: COG has received two applications for the Rural County Economic Development Fund ($0.09 money) and provided Weber and Bronson with copies. She explained the main criteria for the funding is jobs. Passenger-only ferry: McDonald said she brings up the passenger-only ferry possibility at every opportunity, and noted that some COG members commented that the Port of Coupeville needs to talk with the Washington State Department of Fish and Wildlife (WDFW). Those members don't believe WDFW will allow the passenger-only ferry and pier at Cama Beach on Camano Island. Patton said he will talk to Jeff Wheeler, the project director at Cama Beach. Wheeler previously said the State Parks Department had budgeted for planning and permitting in 2008, so hopefully they've had discussions with WDFW already. Puget Sound Energy (PSE): PSE made a presentation at the last meeting, including a consultant from UtiliPoint. PSE opposes the creation of a Whidbey Island Public Utility District (PUD). Patton said PSE had contacted him regarding the possibility of a joint meeting with the Port of South Whidbey and the Port of Coupeville for PSE to make their presentation. Weber said PSE has made a number of presentations already, and all 3 board members said they had heard it. MacLeod-Roberts explained that the Port of South Whidbey commissioners agreed that PSE has already had numerous presentations, and they don't feel another is necessary, and it would not be good use of taxpayer's money and commissioner's time. They would reconsider if both PSE and Whidbey PUD supporters were presenting. Since the Port cannot take a position on the issue, Bronson asked why they would be involved in the discussion. Weber explained that in the application, both PSE and the Whidbey PUD have to check that little box indicating that they have contacted all elected officials, organizations and agencies.

ACTION: A motion was made by Weber and seconded by McDonald to inform PSE that they would be willing to meet jointly with the Port of South Whidbey for PSE's presentation if Whidbey PUD also presented at the same meeting. The motion passed unanimously.

Weber reiterated that there have been many meetings on the matter on the Island, and she has already heard PSE's presentation in addition to reading all the newspaper articles.

Economic Development Council (EDC), Regional Transportation Planning Organization (RTPO), Washington Public Ports Association (WPPA): (McDonald). EDC: McDonald said they will meet Friday, September 12th, to interview job applicants for the part-time position on Camano. RTPO: Sharp's Corner is still being discussed, and there will be a public meeting on September 25^th at the Anacortes Middle School. Work on the roundabout at Sharp's Corner will not start until spring 2011. There was public comment regarding an emergency crossing structure with Deception Pass bridge, and a possible road between I-5, exit 215 to the west side of Camano, and then a bridge to Whidbey. McDonald said San Juan County is putting together a Regional Transportation Summit in Friday Harbor on September 17th, and she hopes to attend. WPPA: McDonald said she is not able to attend the Small Ports Seminar in Leavenworth October 22nd-24th, but she plans on attending the Environmental Seminar on September 25^th in Bellingham. The fee is $50. Weber said she didn't know yet if she would be able to attend the Small Ports Seminar. Greenbank Farm: Weber said she would accompany Steve Sakuma of the very successful Sakuma Farms on a tour of the Greenbank Farm along with Farm Manager Cheryl Sagmeister at noon on Wednesday.

Greenbank Farm and Puget Sound Partnership (PSP): (Bronson) Greenbank Farm Liaison: Bronson said the focus groups have come to pretty much the same kind of conclusions and the focus is on the new building. The CSA projects are very nice. Bronson said a land survey of the farm is still needed to determine what will grow well based on the soil and conditions. Steel deck plate for Wharf: Bronson asked for a status update, and Patton said the plates are being built now. In order to save on shipping costs, Handyman Dick Tackett will pick them up in Mount Vernon when they are complete. PSP: Nothing new to report. Patton said the next meeting will be sometime in October. He noted that Steve Sakuma is on the PSP Leadership Council.

NEW BUSINESS:

Presentation of Preliminary Budget for 2009: (Patton) Patton referred the Board to the draft budget and levy calculation he had prepared, along with explanatory notes. He pointed out that there is only one levy for the Port and the bond for the farm is repaid from that levy. In 2009, the estimated levy amount available is $339,800 and after $105,163 is deducted for bond repayment, the balance of levy revenue in the General Fund is $234,637. Per the Board's direction, Patton prepared a balanced budget. The Board also recognizes the need to build up the Operating Reserves, so the pressure is on to keep the expense numbers lower than budgeted, so the difference can be used to increase the Operating Reserves.

If the Board accepts and approves it, the signed preliminary budget will become the document that the Port is required by law to have by September 15^th. The preliminary budget will be available to the public once approved. The final budget needs to be adopted by the 1^st Tuesday after the 1^st Monday of October (October 7). Patton went through the 4 pages of detailed breakout of the revenues and expenses of the preliminary budget, and provided explanation for each major item and how the numbers were calculated.

If the levy lift is successful on November 4^th, a new levy declaration and a revised final budget can be prepared and adopted at the Port's regular meeting on November 12^th.

Weber thanked Patton for his presentation on the budget and for all his hard work.

ACTION: A motion was made by Weber and seconded by McDonald to approve the Preliminary Budget for Fiscal Year 2009 as presented. The motion passed unanimously.

Puget Sound Energy's (PSE) request for easement at Greenbank Farm: Patton referred the Board to PSE's letter seeking to purchase an easement at Greenbank Farm for $2,000. He explained that he, Baenen, Stansbury and Bronson walked through the proposed easement area and part of it gets into the wetland. Patton subsequently called Island County Wetland Planner, Justin Craven, who agreed to meet with Patton at the farm. Craven did say there are all sorts of issues with the proposed easement, including possible wetland mitigation. Patton pointed out that there may also be concern about the 119 acres of Farm that has been organically certified. Bronson said PSE did not provide any defined use for the easement. Patton said he will email the Board after meeting with Craven. Baenen asked if it would be safe for him to tell the interested public that the Port has deferred any action on the easement until further studies have been completed, and the Board said yes.

ANNOUNCEMENTS & ADMINISTRATIVE ACTIONS:

Next Port regular meeting: The regular monthly meeting of the Port's Board of Commissioners will be held at 10:30 a.m. on Tuesday, October 7, 2008, in the Port office, located at 24 Front Street, in Coupeville, WA. The meeting will include the Public Hearing for adoption of the Final Budget for 2009.

Monthly Financial Status Report: MacLeod-Roberts submitted the final July 2008 financial statement.

ACTION: A motion was made by Bronson and seconded by McDonald to accept the final July 2008 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 Bronson and seconded by McDonald to approve by signature the September 2008 vouchers, numbers #810 - #832- for a total amount of $46,607.97. The motion passed unanimously.

Patton noted that after paying those vouchers, only $11,938 will remain in the operating reserves. In October, the Board might be asked to approve vouchers that will not be submitted to the County Treasurer for payment until after the levy money comes in.

ADJOURNMENT: There being no further business to come before the Board, Weber adjourned the meeting at 1:26 p.m.