Commissioners Present: Benye Weber, Marshall Bronson and Ann McDonald.

Others Present: Jim Patton (Executive Director), Molly MacLeod-Roberts (Edwards & Associates), Nathan Whalen (Whidbey News-Times), Michael Stansbury (GFMG President), Virginia Bloom (Greenbank Farm Operations Manager) and Michael Diamanti (Coupeville Resident), and Judy Feldman (Acting Director, WSU Island County Extension)

Call to Order: The regular meeting was called to order at 10:30 a.m. by Commissioner Weber in the Coupeville Recreation Hall, located at 901 Alexander Street in Coupeville, WA, followed by the Pledge of Allegiance.

APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING: There were none available.

Weber noted that a request had been made to reorder the agenda in order to discuss the preliminary budget first and the Board agreed to grant the request.

NEW BUSINESS:

1. Preliminary Budget 2010, discussion and approval: Patton referred the Board to the draft 2010 preliminary budget and levy calculation he had prepared, along with explanatory notes (on file at the Port office). 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. He pointed out the line item titled "Restoration of Operating Reserves" had been added to the to the General and Administrative Expenses, and a nominal $15,000 was allocated in the 2010 budget as a first step in trying to restore the Port's Operating Reserves.

Weber pointed out that the Board is only paid for the Port's regular meetings. Although they are entitled to be paid for all the other committee meetings they attend, in addition to travel reimbursement, the Board has elected not to be paid for those meetings.

Patton explained that the budgeted amounts for fuel sales and costs were based on a 4-year average, and the Port would continue to manage inventory at minimum levels.

Regarding the Port's purchase of the Community Supported Agriculture (CSA) subscription at the Greenbank Farm, Bronson asked Patton to check into the rules regarding the Port's donation of that subscription to the local food bank and Patton agreed to do so.

Patton said that no money was budgeted for the Capital Project at the Farm in 2010, since the Port's efforts on the project has been suspended until the State's next budget cycle begins in 2011. However, Patton said that the Port had learned via the Washington Public Ports Association (WPPA) that a Washington State Public Works grant is available for construction projects that would create jobs in small, rural communities. Per Board approval, Patton had submitted the 12-page grant application prior to the September 8, 2009 deadline. Along with other substantiating documents, he included the Members Request for Capital Projects that was co-signed by State Representatives Norma Smith and Barbara Bailey and supported by State Senator Mary Margaret Haugen, and an advance copy of the Master Site Plan for the Greenbank Farm. Weber said she didn't understand why the Port didn't hear about the grant from the state representatives on the budget committee rather than WPPA. Patton reported that Coupeville Mayor Nancy Conard informed him that the Town has also submitted an application for $500,000, but for infrastructure rather than buildings that would bolster long term employment. The Port of South Whidbey has also applied for $500,000. He noted that when the Port originally applied for $2 million for the capital project, Reps. Bailey and Smith decided to bifurcate the $2 million into two phases. Patton asked the Board if Public Works comes back and asks, "Is this something you could begin to do if we only give you half the money?" The Board agreed that their answer would be "Yes, absolutely." Patton said if the capital project suddenly emerges as a possibility in 2010, the Port could amend the budget to put something in that line item as needed.

Patton concluded by noting that the draft preliminary budget was balanced, and pointed out that the Operating Reserves are estimated to be $85,000 at the end of 2009, and $100,000 at the end of 2010.

ACTION: A motion was made by Bronson and seconded by McDonald to approve the 2010 Preliminary Budget as presented. The motion passed unanimously.

The Board thanked Patton for his presentation on the budget and for all his hard work. Patton said he would place an ad in the Whidbey News-Times and the Whidbey Examiner notifying the public that the Port's 2010 Preliminary Budget is available at the Port office and on line at www.portofcoupeville.org and that a public hearing on the Final Budget will be held on October 1, 2009.

SPECIAL PRESENTATIONS: None.

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 fuel sales have improved, with 3,400 gallons sold in August compared to a little over 1,000 gallons sold in August 2008. Moorage revenue in August totaled $2,500, compared to $2,400 in August 2008 and $3,200 in August 2007.

Status of permit for pumpout station: Patton said the first sequence in permitting was complete. He submitted a State Environmental Protection Application (SEPA) to the Town of Coupeville, and the Town will invoice the Port $1,000 for that. He reminded the Board that the Town agreed one SEPA would be sufficient for both permit projects (pumpout station and piling repairs). The Town Council needs to approve the pumpout permit during their October meeting, but the presentation has already been made to the Design Review Board and they were very excited about the project. Once the Port has received the Town's permit, Patton will attach it to the Joint Aquatic Resources Application (JARPA) and send it to the State. He explained that they don't know how long it will take for the State to issue a permit, but the purveyor of the vacuum pump, Harbor Plumbing and CK Electric are standing by and their bids are good for 90 days (through October).

Zodiac purchase: The Port's recently purchased secondhand Zodiac in excellent condition is on the mooring floats and the outboard motor is locked in the Port office basement for now, pending the purchase of a special lock to attach it to the Zodiac. The Port will now be able to provide emergency assistance and a safe means for the harbormaster and dockhand to check on the mooring buoys, etc.

Wharf, causeway and park upkeep: status of removal of exterior of 905 N. Main and replacement of Wharf siding: Patton said the removal has been a fun experience for him and the half-dozen volunteers who have met every morning this week. Gary Wray, owner of Laser Siding, and Russ Johnson have provided guidance and tools in addition to their skills. Mayor Nancy Conard wanted to thank the volunteers, so she treated them all to lunch at the Mosquito Fleet. Patton said they removed over 1,000 sq. ft. of cedar siding. Both sides of the boards have been primed, and two coats of paint have been applied to one side, matching the color of the Wharf. The volunteers will reconvene soon to replace the Wharf siding with the salvaged boards. Weber said the Board needs to do something for those wonderful volunteers, and Patton said he would work on plaques or something similar for the members of the "905 N. Main Gang."

Status of permit request for piling repairs: Patton reported that within a day or so of Patton's presentation to the Design Review Board, Town Planner Larry Kwarsick had provided the Port with an exemption from the permit based on the SEPA for the piling repairs. Patton then transmitted that exemption letter along with a JARPA to Olympia. He said it is conceivable that the Port will receive the permit for the repairs in a relatively short period of time. The actual repairs can be done in just one day.

Status of formal agreement with Washington State University (WSU) Extension - Beach Watchers: Patton referred the Board to the current draft of the agreement (on file at the Port office), and noted that WSU-Extension Acting Planning Director, Judy Feldman, was on hand to discuss the issue and address any of the Board's questions or concerns. Feldman thanked the Board for entering into an agreement with the Beach Watchers to use the Wharf. Due to some reorganization at WSU, she explained that the process has been "a little stuttered, but we're moving along." Mary Hoffman at the WSU Business Office had emailed her that morning and Feldman shared that email with the Board. Hoffman had noted that WSU needs to include a termination clause, and she wondered why the insurance liability clause was changed and why the #15 (Assets and Property Sold) was omitted. Patton noted that a termination clause could easily be included, and the other concerns had been rolled up into another area of the agreement in a subsequent draft. Patton suggested that he and Feldman could confer and discuss the agreement and amend the draft accordingly. With Board approval, Patton would then sign the agreement prior to its submittal to WSU for their signature, and then Weber would provide her signature and the agreement wouldn't have to be on hold until the Port's next regular meeting.

ACTION: A motion was made by Bronson and seconded by McDonald to approve the draft formal agreement with WSU Extension - Beach Watchers conditioned upon the changes discussed in today's meeting. The motion passed unanimously.

On behalf of the Board, Weber thanked Feldman for coming to the meeting and for all her work through the WSU-Extension program in Island County.

Patton noted that 5 years ago, the Board allocated the 3 faces of the kiosk at the Wharf entrance, with use limited to Port and Port-related activities. One face was allocated exclusively to the Beach Watchers, and the Port has been very satisfied with the materials posted there. Recently; however, Beach Watchers posted information regarding Ebey's Landing, even though another kiosk just 20 ft. away is totally dedicated to Ebey's Reserve. Since Ebey's is not a Port or Port-related activity, Feldman agreed they would remove the Ebey's information from the kiosk.

Status of publication of Wharf history written by Roger Sherman: Bronson said he hoped to begin editing the history by the end of the following week.

Requests for consideration of Wharf and Greenbank Farm Barns A & B for inclusion in Heritage Barns Program: Patton noted that the GFMG is farther ahead in the process than the Port is for the Wharf, since an application is being considered for Barns A and B, although no representative has actually agreed to come look at the barns yet. Farm Operations Manager Virginia Bloom explained that she had not even received an email response indicating they were officially looking at it. She noted that she originally asked only about Barn A in March. As requested, she had sent them information regarding Barn A's history along with pictures, etc. Patton explained that they would not be spending any additional time or expense on the matter until a representative from the Program has come to the Island and the Wharf and Farm and indicated that they would consider including them in the Program. Only then would it be worthwhile for Patton and Bloom to complete the applications and provide additional documentation.

Greenbank Farm Master Site Plan final draft - status of printing and distribution: Patton said he would keep the Board informed via email when printers respond to the Port's RPQ and selection can be made at the next regular public meeting of the Port.

Greenbank Farm Management Report: Michael Stansbury, President of the Greenbank Farm Management Group (GFMG), was on hand to answer any questions the Board had regarding the August Report previously emailed to the Board, which is included in these Minutes as follows:

August was full of events at the Farm. The month opened with the traditional Highland Games. It was followed by two weekend performances of the Whidbey Island Music Festival. Do-It-Yourselfers were treated to a daylong discount tool sale. And August was rounded out with the WAIF Wag 'n Walk for Whidbey Island dogs and Trials for Trails - training exercises and contests for horses and riders. All are renewing for next year, and Trials for Trails was so successful that a reprise is planned for later in the Fall.

Visitors to the Farm continue in impressive numbers as the art galleries, Café, Cheese Shop and Wine Shop all had a very good August.

The Northwest Business Center, which developed the CSA training project, advised the Port and the GFMG that it had received a grant to continue the project for another year, and at an increased funding level. This is good news for the Farm because it has become a signal activity at the Farm and is good news for all of the subscribers that have enjoyed the fresh produce.

With fewer activities planned in September and October, we expect to push forward on the improvement projects identified in the July report.

First half financial results show that operations have improved substantially from 2008, which will improve the financial base for the Farm.

Stansbury noted that over a number of months, he, Bronson, Patton and Bloom have discussed the opportunities for the Farm to become a self-sustaining entity. Through August, the Farm is approaching a near breakeven in financial operations, and Stansbury noted that is quite an achievement, largely attributed to Bloom's management and leadership skills. Because of that, the GFMG will be able to direct more of its fundraising opportunities toward improvements rather than focusing on closing their operating gap as they have been doing.

Stansbury was very pleased to report that all of the art galleries at the Farm have had a very successful summer.

The Board thanked Stansbury for his report.

Status of signs, etc. for off-leash dog park: Bloom said that some aspects (access road, parking, etc.) are still up in the air, and explained that the long range plan to be laid out first, identifying the exact location where the new building will be and whether the loganberry patch and the children's play area would need to be moved, etc. The GFMG doesn't want to identify an access road and parking, and then have to change it again in two years. Bloom concluded that they are not ready to move it until they know where its permanent location will be. She noted that they did place small signs asking people to park in the highway pull-off area, and they've added signs along the agricultural access road notifying people to keep their dogs on a leash in that area. They would like to add poles with flags to designate the boundary of the off-leash area, because it is so unclear right now.

Suitability of Navy surplus barn for Greenbank Farm: Patton referred the Board to a copy of the email from Peter Lane, who hosted Patton, Bronson, Stansbury and Bloom when they visited the Naval Air station to look at the barn. Lane said the U.S. Navy could pay for the hazardous material removal, but they don't have the money and won't have it until 2011 or 2012 at least. He also stated that the Navy could not pay for any cost to dismantle and move the barn, the real estate process is long, and the Navy can't guarantee the Port will get the barn once the disposal process has begun. Patton concluded there was not much encouragement, and asked the Board for direction in his response to Lane.

Bronson noted that the Navy cannot get rid of the barn without first removing the hazardous waste. He shared an interesting proposal that he had heard: There is an Air Force heavy-lift helicopter that needs exercises, and if the barn can be divided into 24-ft. sections, it is possible that it could be lifted up, barged down and then lifted up onto the Farm. He said, "So even with these sobering thoughts, I wouldn't write it off as a total loss." The Board agreed to table the discussion for now (since the Barn isn't going anywhere), and directed Patton to respond that the Port is still interested and ask Lane to continue to keep the Board informed.

Proposal to move water tank: Bloom explained that the large red water tank next to Barn A is not in use, and it is currently located on the lawn where they would like to be able to hold weddings, so they would like to move it. She spoke with Island Crane Services and they said they could move it to the agricultural area, where it could be used to provide water storage for irrigation. The Board agreed it was a good idea, and Bloom and Bronson said they would look into the engineering aspects of it and keep the Board informed as to progress.

NEW BUSINESS (continued): At McDonald's request, the agenda was reordered to address the remaining items of New Business and the Administrative Actions before Committee Reports. The Board agreed to do so.

2. Plan for three-year review of Comprehensive Plan 2007-2026: Patton noted that the Comp Plan mandates a review by a community advisory committee appointed by the Board every three years. The Board must seek public input on the advisory committee's proposed updates to the Plan, make appropriate revisions and approve the revised Plan no later than the regularly scheduled public meeting in March 2010, 2013, 2016 2019 and 2022. Patton asked the Board to provide him with the names of potential community advisory committee members prior to the Board's regular October meeting, when he will present a plan for that review and include the list of potential members for the Board to appoint. The Board agreed to provide Patton with some names via email. He also asked the Board to determine the size of the committee, and the Board agreed that 5-7 members would be adequate and the members should be representative of the entire Port district, which includes Coupeville and Greenbank.

3. Letter supporting ORCANET grant application: Patton referred the Board to their copy of the letter drafted in support of ORCANET's grant application (on file at the Port office).

ACTION: A motion was made by Weber and seconded by McDonald to approve the letter of support for ORCANET as presented. The motion passed unanimously.

Weber signed the letter and Patton said he would mail it as soon as he learned the correct address to send it to.

4. Resolution recognizing Whidbey-Camano Land Trust's 25^th Anniversary: Weber noted that the Trust had asked all the entities represented in the Island County Council of Governments to issue a proclamation recognizing their 25^th anniversary. Patton referred the Board to their copy of Resolution No. 153 (on file at the Port office), which MacLeod-Roberts read into the record.

ACTION: A motion was made by Weber and seconded by Bronson to approve the adoption of Resolution #153 recognizing the 25^th anniversary of the Whidbey Camano Land Trust. The motion passed unanimously.

5. Application for Washington Public Works grant for multi-purpose building: Patton noted that the multi-purpose building is an ideal candidate, since the application defines eligible projects as "Public works projects that create jobs for small communities in rural counties based on the unemployment rate of the county; the impact on unemployment based on the number of jobs created/retained as a result of the project; the ability of the applicant to complete the project promptly; and the value the project presents to the community in lasting improvements to public safety, environmental quality, recreation and community life, or economic development." Patton explained that the total available grant resources is $9,531,000, with no maximum limit on the amount a jurisdiction may request and a minimum limit for award of $100,000. The Port is asking for $1.98 million. Patton said Terry Dale, the Port's Client Service Representative at the state's Department of Commerce Public Works Department, was very encouraging in his response. Patton completed the 14-page application and both he and Bronson signed it, and included copies of the Comp Plan, the Master Site Plan and the Members' Request from Representatives Barbara Bailey and Norma Smith prior to mailing.

ANNOUNCEMENTS & ADMINISTRATIVE ACTIONS:

Special public meeting: A special public board meeting to adopt the 2010 Final Budget will be held at 5:00 p.m. on Thursday, October 1, 2009, at the Port office, located at #24 Front Street in Coupeville, WA.

Next Port regular public meeting: The next regular monthly meeting of the Port's Board of Commissioners will be held at 10:30 a.m. on Wednesday, October 21, 2009, in the Coupeville Recreation Hall, located at 901 Alexander Street in Coupeville, WA.

Monthly Financial Status Report: MacLeod-Roberts submitted the final July 2009 financial statement.

ACTION: A motion was made by Bronson and seconded by Weber to accept the final June 2009 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 Weber to approve by signature the September 2009 vouchers, numbers #1118 - #1136 for a total amount of $45,121.21. The motion passed unanimously.

McDonald apologized and said she needed to leave the meeting. She noted that she did not have any committee report for the WPPA Legislative Committee because they had not met.

COMMITTEE REPORTS:

Greenbank Farm Liaison, Puget Sound Partnership (PSP), Economic Development Council (EDC), Regional Transportation Planning Organization (RTPO): (Bronson) Greenbank Farm: Bronson attended the Highland Games and said it was "absolutely fantastic." All of the shop owners seem very pleased and business is up. Patton reported that he had been looking into ways to get rid of the large piles of concrete and wood at the Farm, and will continue to work on that. Bloom said that Island Asphalt might take the asphalt and dump it at no charge, and some of the artists at the Farm's galleries would like to take some of the wood. PSP: No meeting. The PSP Newsletter is available online at http://www.psp.wa.gov/. EDC: No meeting. RTPO: No meeting. The next meeting is scheduled for September 23^rd, following the COG meeting at 10:00 a.m.

Council of Governments (COG), Marine Resources Committee (MRC); and Central Whidbey Chamber of Commerce (CWCC), (Weber) COG: Weber attended the August 26^th meeting. Island County Commissioner (ICC) Helen Price Johnson shared information about a group organizing a November workshop regarding the connection between energy efficiency, our local economy and local jurisdictions. The group has invited COG representatives to attend the workshop, and Price Johnson will keep them updated. Island County Budget Director, Elaine Marlow, discussed the Rural County Economic Development Fund (RCEDF), and made the recommendation that the County not take any applications this year and keep the existing money (between $600,000 and $800,000) and build on that so that they have money for next year or the year after. The COG agreed with her recommendation. Marlow also reported that when the ICC awarded RCEDF money to the City of Oak Harbor, Freeland, and the Port of South Whidbey, they did so without conditions in place for the money. Weber obtained an RCEDF application and guidelines for future use by the Port (available at the Port office); noting that the Port is eligible and "we need to get some of that money." The next COG meeting will be September 23^rd. Weber also provided Patton with information regarding grant funding available through the US Census 2010. MRC: Weber attended the most recent MRC meeting (Minutes on file at the Port office and available at www.islandcountymrc.org). The next meeting will be held September 15^th at 3:30 p.m. in the ICC Hearing Room, and guest speaker, Dr. Andrea Copping, of the Pacific Northwest National Laboratory at Sequim will discuss the energy needs of and threats to the marine environment. Also on September 15^th, the National Parks Service, the Trust Board, the Town of Coupeville, and the Design Review Board of Coupeville will meet to get information about the new design/review that will be representative of all the groups. CWCC: The next meeting will be held September 10 at the Coupeville Recreation Hall at 8:00 a.m. PCWF: No meeting.

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