PORT OF COUPEVILLE

Commissioners Present: Benye Weber and Marshall Bronson
Commissioners Absent: Ann McDonald

Others Present: Jim Patton (Executive Director), Molly MacLeod-Roberts (Edwards & Associates), Virginia Bloom (Executive Director, Greenbank Farm), Nathan Whalen (Whidbey News-Times), Maryon Atwood (Northwest Agriculture Business Center), Sebastian Aguilar (Coordinator, Community Supported Agriculture), Kelly Keilwitz (Whidbey Sun & Wind) and Coupeville Residents & Comprehensive Plan 2007-2026 Review Committee Members Mike Diamanti and Jim Phay

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:

Weber stated that the Minutes for the regular meeting of December 9, 2009 were available for approval and signatures, but noted that since she was absent from that meeting, she could not approve them. Since McDonald was absent from today's meeting, approval of the Minutes for the regular meeting of December 9, 2009, would have to be postponed until the next regular meeting on February 10, 2010.

BOARD ELECTION OF OFFICERS:

Oath of Office: Weber administered the Oath of Office to Bronson. The Notice of Election and Oath of Office was subsequently notarized and forwarded to the Island County Auditor as required by state law. Patton presented Bronson with the framed Certificate of Election.

Election of Board Officers: Weber stated that the floor was open for nominations.

ACTION: A motion was made by Weber and seconded by Bronson for Bronson to serve as Board President for 2010, McDonald to serve as Board Vice President for 2010, and Weber to serve as Secretary for 2010.

Weber asked three times if there were any other nominations. There were none, and Weber called for a vote on the motion. The motion passed unanimously. Bronson immediately assumed his duties as Board President and chaired the remainder of the meeting. Assignment of Board member's representational duties must wait until the next regular meeting when all three members will be present.

SPECIAL PRESENTATIONS:

Presentation of memento to Donna Keeler: (Board) Patton reported that Keeler was unable to attend the meeting, so presenting her with the framed memento in appreciation for her excellent work on the Master Site Plan for the Greenbank Farm will have to wait for another opportunity./r

Proposed request to Council of Governments (COG) re: Puget Sound Energy (PSE) Green Power Award: (Kelly Keilwitz and Patton) Patton reported that he and Keilwitz had briefed the Sustainable Whidbey Coalition at their meeting the night before on a concept for hosting a community-owned solar energy project at the Greenbank Farm. Keilwitz, owner of the Whidbey Sun & Wind Company, briefed the Board on the proposed concept of establishing a community solar energy system. He explained that a new Washington State law allows for the formation of community solar energy systems and incentivizes them with double production credits for the energy that they produce. Currently, Washingtonians get benefits from a solar energy system from two sources: 1) net metering offsets (i.e., the energy that the system produces reduces the energy that has to be purchased), and 2) the State provides an annual production credit incentive based on kilowatt hours (kWh) of energy produced. The incentives are tiered based on the equipment used (equipment made in Washington has a higher level than out-of-state equipment). For every unit of energy bought from PSE, we spend about 10 cents/kWh, and the production incentive credits from the State are 15 cents/kWh. If the solar panels, inverters and batteries are manufactured in Washington the production incentive credits increase to 36 cents per kWh and, provided the system is owned and operated by a community solar energy cooperative, those credits are doubled. The new law that allows for double production credit incentives increases that value to 72 cents per kWh. Adding in the 10 cents saved for every kWh produced, the return could be as much as 82 cents per kilowatt hour.

Patton distributed photos of the mobile solar energy display that was parked at the Greenbank Farm last month, featuring panels made in Washington State by Silicon Energy Company, based in Arlington, WA (on file at the Port office).

Keilwitz explained that he envisioned the community solar energy system to be owned and managed by some form of a non-profit organization or a co-op. The law permits municipal entities (such as the Port) to host such systems and use the energy that they produce - but it is not yet clear if a municipal host could receive production credits for the energy. If a group of people could get together and pool money to put up a large system, they could get better production credit incentives than they could on their own home and they would get a better return on investment for participating in a community solar system for a smaller and/or graduated investment. The community solar participants can be anyone (individuals, corporations, non-profits, etc.), but the system must be installed on a publicly owned piece of property. An ideal place would be at a facility that has substantial energy use, has a good solar exposure, and has a substantial area to install a system. Keilwitz said Greenbank Farm is ideal - it has a lot of south-facing barn roofs, plenty of land space and large energy use to offset. It also occupies a central location on Whidbey Island within the rain shadow and it is publicly owned.

Keilwitz noted that PSE has presented a $25,000 Green Power Award to the Council of Governments (COG). The COG desires to use the money to incentivize a solar energy project but has not yet determined a procedure for doing so. A 10 kW-sized community sola energy system using Washington-made modules (which are more expensive than other modules), might cost up to $100,000. He cautioned that the numbers are very conservative; it's likely to be less than that estimate. Such a system would produce about 10,000 kWh/year. If the COG contributes the $25,000, the balance would be $75,000. If the system was hosted at the Greenbank Farm, the "host" would get the benefit of the actual power produced, and that value would be about $1,000/year (10,000 kWh @ 10 cents/kwh). That benefit would increase as power costs go up over time. The production credit incentives would then go to the participants in the community solar system - 72 cents/kWh or $7,200/year for the power produced by the system, divided among the participants. Patton had suggested that in addition to hosting the system, the Port should also be a participant. Keilwitz and Patton are looking into whether or not that is a possibility under the law

Weber questioned the load bearing capability of the barn roofs for the solar panels. She asked if installing them in one of the fields was an option, and Keilwitz said, "Sure." However, he explained that the lowest cost option for solar is roof installation on an existing building, as long as the roof is structurally sound. There is very little additional load imposed by the solar system. Patton said he and Virginia Bloom have been discussing ways to improve the support structure of the roof of Barn B in order to make that the second floor usable. Bronson noted that Barns A & B had recently been listed as Historic Barns and they are high visibility buildings, and expressed concern over the aesthetics of solar panels on their roofs and how that would change the visual aspect. His first thought would be to put the panels in a designated area on the ground where there would be plenty of space to expand the system if desired. Bronson thought a field location would be easier to connect and maintain and would be "more sightly."

Keilwitz stated that a ground-mounted system is possible, but it would be considerably more expensive. Since it would be located away from an electrical service, the ground would have to be dug up and conduits laid, a structure would have be built to hold the modules, and the system would probably require fencing around it to protect it from the public. He noted that such fencing might be more unsightly than dark solar panels against a dark barn roof. Keilwitz added that the barn roofs are very large and a 10 kWh system will not take up much space, so the system could be expanded on the roof if desired.

Patton and Bloom agreed whatever the first step is, they should view it as a pilot operation. Patton said that if it is successful then they could move on to dedicating an acre for a solar array field.

Bronson said he'd like to get more information from PSE, Bloom and Keilwitz before moving forward. Weber noted they would also need to follow the Council of Governments' (COG) guidelines in order to be eligible for the $25,000 grant award, and such a project could well serve as a prototype for others and provide a source of revenue. Patton pointed out that the CSA project under the NABC at the Greenbank Farm is a good example of community involvement, as 56 people bought $500 shares for weekly produce delivery during the growing season. The proposed community solar system would allow 50% more participation (75 people/$1,000 shares). The amount of public relations benefit the Port has received through its sponsorship and hosting of the CSA operation has been exceptional. Patton reported that when he and Keilwitz made the presentation at last night's meeting of the Sustainable Whidbey Coalition, the response was "electric" and very encouraging.

Patton asked the Board if they want to move forward with the presentation at the next COG meeting on January 27th. Bronson and Weber felt they needed additional data in order to make a significant, supportable proposal to the COG and suggested a special workshop meeting to discuss it prior to the 27th.

Keilwitz said his understanding is that the COG will not make a final decision on the $25,000 award at that meeting, and he felt it would be good to make a presentation at that time. In his view, it is critical that the project be sponsored by another party - a community solar energy group - and that the Port is "a willing recipient" of the project, and perhaps a participant as well, but not the sponsor and the Port wouldn't be running it. He said the Port could certainly promote the project, but legally, he doesn't know if the Port could run it. Keilwitz said the terms of the PSE grant are really to support a community organization effort. Bronson felt the Port would be one member of the cooperative, and Weber agreed.

ACTION: A motion was made by Weber and seconded by Bronson to hold a technical advisory meeting regarding a community solar system at the Farm, with the intention of making a presentation at the Council of Governments' meeting on January 27, 2010. The motion passed unanimously.

Bronson and Weber said they would advise Patton of their availability, and Patton said he would check with McDonald and advise the Board via email.

Proposed terms of lease to NABC re: CSA Project: (Maryon Atwood and Patton) Atwood (CSA Program Director) referred the Board to the list of terms/conditions of the proposed NABC lease (previously emailed to them and on file at the Port office). She explained that they are interested in other grant opportunities, and to be eligible for those grants, they need a lease with a longer term than just one year - a minimum of 3 years, and it would be better if it were 5 years. If the Board approves the terms and conditions of the proposed lease, Patton said he would draft the lease in the standard format. Patton noted that the NABC has agreed to reimburse the GFMG for the electric bill to operate the irrigation pump (about $20/month). The NABC would also like to put up an additional "hoop house" and possibly another structure as well over the term of the lease. The Board said they support the CSA project wholeheartedly.

ACTION: A motion was made by Weber and seconded by Bronson to accept the proposed terms/conditions as submitted, including a 5-year term with the option to renew. The motion passed unanimously.

Bronson noted that the Whidbey News-Times had an excellent article on the CSA but the newspaper neglected to even mention the Port, which owns the property (Greenbank Farm). Bronson said the Farm is a Port District asset and therefore the public should be aware that the work is being hoisted by the Port. Atwood said all CSA printed materials contain references to the Port of Coupeville as their landlord. The Board thanked the CSA and the GFMG for working together successfully.

Patton pointed out that although the kiosk at the Wharf has a celebration of the Farm displayed on it, there is nothing similar at the Farm featuring the Port of Coupeville. Bloom will work it out so there is a cross-reference to the Port at the Farm.

Atwood said she is putting together a new advisory group for the CSA project, and she would "very much like a Port staff member or commissioner to be on that board." Weber pointed out that the Board gets lots of invitations to serve on boards and committees and they do so voluntarily. Bronson said he would be happy to serve on the advisory board.

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

UNFINISHED BUSINESS:

Port Executive Director's Report: (Patton)

AGENDA RE-ORDERED: The Board agreed to re-order the agenda to allow attendees to address the Board sooner.

Status of formal agreement with Washington State University (WSU) Extension - Beach Watchers: WSU Extension Acting Director Judy Feldman announced, "It's finally done!" and apologized for the delay. She noted that it is not dramatically different from the draft submitted 3 months ago; it just has the appropriate legal language for the WSU liability coverage, etc. Patton said he is very comfortable with the final version as it satisfies all of the Board's expressions of interest related to the Beach Watchers use of the breezeway on the Wharf for interpretive displays. He provided his recommendation by his signature as Executive Director, as will Feldman as Acting Director./r

ACTION: A motion was made by Weber and seconded by Bronson to approve Contract #18442 between the Port of Coupeville and Washington State University as presented. (A copy is on file at the Port office.) The motion passed unanimously.

Comprehensive Plan 2007-2026, three-year review - schedule for report and public briefings: On behalf of the Community Advisory Committee, Mike Diamanti, read aloud the committee's letter of transmittal and presented the Board the committee's report on their review of the Comp Plan (on file at the Port office). Patton suggested the next step is for him to create a PowerPoint presentation of the review report for the public at a special Port meeting, during which the Board will simply listen to the public's reaction. The Board can accept, reject or change any of the suggestions or recommendations made by the Committee. At the regular March meeting, the Board will decide what action to take. Once that is done, Patton will make whatever addenda to the Comp Plan deemed necessary, and send it with a cover letter to the State's Recreation and Conservation Office./r

Patton said he "had nothing but admiration" for the 6 volunteers on the Committee for their dedication and work and the Board agreed that they are to be commended. The Board thanked the Committee and Patton.

Patton said he would schedule the special meeting after the Board has emailed him with their available dates and times.

Boating and fueling activities: Patton reported 347 gallons of fuel sold in December with the net proceeds to the Port only $139.16 -- bringing the total netted from fuel sales for 2009 to $6,653.72. That is about $900 short of the $7,500 breakeven amount. After a brief discussion, the Board agreed to leave the markup rate at $0.40 per gallon for now. Victoria Clipper visits: During March and April, the Clipper will stop over on Saturdays around 1:30 - 2:00 p.m. for about 1½ hours. The Front Street Merchants are looking forward to it and are making plans for welcoming the visitors. Patton said he had notified the Clipper that the Port does not have ADA-compatible facilities. Status of pumpout station project: Patton noted that the Town of Coupeville permitted the Port under their Shoreline Management responsibilities, and the Port also received a permit from the Department of Ecology. The pumpout station did not require a permit from the Department of Fish and Wildlife, but a permit from the Army Corps of Engineers is required and is currently being processed. He referred the Board to the Town of Coupeville's letter dated November 22, 2009 (on file at the Port office), indicating concern regarding an increase in the biological oxygen demand (BOD) level at their sewage system as the result of accepting human waste from boaters. Apparently, there are limits to the BOD inherent in the Town's water treatment plant. The letter laid out a number of things to be analyzed and Patton will assist with that analysis over the next couple of weeks as his time permits. If the analysis indicates an excessive oxygen demand level the Town might renege on its permit. The Board doubted that the level would be found to be excessive. Patton said he would keep them advised via email

Patton also pointed out that the letter from the Town included the possibility that the Port could be charged for an additional hook up fee of $5,500, depending on the amount of additional sewage deposited into the Town sewer system from the sanitary system at the wharf. The Town calculates sewer charges based on the amount of potable water drawn from the Town's water system. The pump out station would be contributing sewage without reference to any water drawn from the Town's water system. Patton said that rather than wait for a future decision by the Town at some unknown date it would be better to include that project cost in the Port's application for a reimbursement contract from WA State Parks and Recreation. That way it would be a reimbursable expense under the pump out grant.

Wharf, Causeway & Entrance Park Upkeep:

Status of replacement of Wharf siding: Due to very bad weather, the replacement status has not changed. However, the volunteers were out pressure washing the mold off the causeway and wharf's walking deck during some of the worst weather. Status of piling repairs: The repairs are pending the shift in tides, since 6 hours of dry beach during daylight hours are needed to complete the work. Status of bracket installation on second concrete fuel float (second float): The installation is also pending the shift in tides. Volunteer support: Excellent!

Status of hanging "Samson" from the breezeway ceiling: Port Handyman Dick Tackett is scheduled to hang Samson (a male sea lion skeleton) on January 29th./r

Selection of date for Special Meeting re: airport feasibility study: After a discussion of the Board's commitments to address multiple issues at public meetings and the individual schedules of the members, the Board decided to schedule the special meeting to consider whether a feasibility study should be undertaken regarding possible Port acquisition and operation of the Joelle Eisenberg airport for some date in March. The Board agreed that the venue for the meeting should be the firehouse near the airport and that the time should be in the early evening. Patton will include Board selection of the date on the agenda for the February 10th regular public meeting.

Status of Plan "B" (Conservation Easement Grant Deed and Conservation Futures Application): Patton said that Michael Stansbury, President of the GFMG, has been "a wonderful soldier" as he generously applied his time and legal skills to the draft Plan "B" documents. He has also met several times with Pat Powell, who has also been very helpful by providing guidance. Patton referred the Board to the 30-page grant deed Stansbury had drafted (on file at the Port office), and pointed out that Sections 5 and 6 are the "guts of it." Section 5 lays out future uses of the land and Section 6 prohibits everything except those uses identified in Section 5. If the Board is comfortable with the draft as presented, Stansbury and Patton will take it to Powell and "smooth out the edges." The next step is to couple the grant deed with the Conservation Futures application, which must be submitted prior to March 1st. That means the deed and the application would need to be approved at the Port's regular meeting in February.

Bronson felt they should receive public input on the Conservation Easement Grant Deed and the Conservation Futures Application at the regular February meeting prior to Board approval. Patton noted that going forward with the Conservation Easement was part of the Port's Comprehensive Plan and an integral part of the Master Site Plan for the Greenbank Farm, both of which have been subjected to public scrutiny. Bronson pointed out that the specifics of the Conservation Easement had not been presented to the public for comment./r

Greenbank Farm Management Report: GFMG Executive Director, Virginia Bloom, was on hand to answer any questions the Board had regarding the December Report previously emailed to the Board, which is included in these Minutes as follows:

Happy New Year!

The Board thanked Bloom for the report. The Board agreed that expansion of the wine shop was a good idea.

Patton referred the Board to the copy of the map of the Farm (on file at the Port office) that he had put into their folders which indicated the proposed enlargement of the commercial parcel. The proposal is consistent with the results of the Master Site Plan which included a design for a new building and an additional access road into the Farm. He recommended that the Port hire a surveyor in order to prepare a boundary line adjustment to allow for that enlargement. There would be an additional and simultaneous adjustment to put the bulk of the wetland east of the barns into one parcel rather than two as it is now. Patton pointed out that the enlarged commercial parcel would be left out of the Conservation Easement because Conservation Futures money could not be spent on commercial parcels and because the Master Site Plan called for more development on that parcel. The Board authorized the survey to be done.

COMMITTEE REPORTS:

Greenbank Farm Liaison, Puget Sound Partnership (PSP), Economic Development Council (EDC), Regional Transportation Planning Organization (RTPO): (Bronson)

• Greenbank Farm: Bronson had nothing to add. Patton noted that there was no audit of the Farm's financials in December, but Stansbury is prepared to present the December charges against the Port's fee and the 2009 Annual Report in January when he returns from the East Coast.
• PSP: Nothing new to report
• EDC: Nothing new to report.
• RTPO: The RTPO did not meet in December.

Penn Cove Water Festival Committee (PCWF), Marine Resources Committee (MRC); Northwest Straits Commission (NWSC) and Central Whidbey Chamber of Commerce (CWCC), Council of Governments (COG):(Weber)

• COG: No meeting in December - next meeting on January 27th at 9 a.m. in the Island County Commissioners' Hearing Room.
• CWCC: Weber reported the CWCC will hold its Election of Officers and Annual Membership Meeting tomorrow at 6 p.m. in the Coupeville Rec. Hall. She hopes the CWCC is able to get a quorum for the meeting, as attendance has been a concern.
• MRC: Weber did not attend the December meetings, but Minutes from MRC meetings are available at www.islandcountymrc.org. The MRC has been conducting a special review of their grants and discussing the reduction in force of WSU-Extension. The next meeting is January 19th at 3:30 p.m.
• PCWF: Weber reported they are meeting regularly; getting ready for the Festival on May 22nd.

Washington Public Ports Association (WPPA) Legislative Committee: (McDonald) McDonald was absent, so there was no report. Patton referred the Board to the WPPA announcement and agenda of the 2nd Annual Legislative Port Day to be held February 1, 2010 (on file at the Port office). He also referred the Board to the WPPA letter regarding the formation of a Centennial Project Committee. Unfortunately, that meeting is scheduled at 10:30 a.m. in Tacoma on January 27th - the same time as the COG meeting. The Board directed Patton to send a letter or email to WPPA explaining why the Port would not be able to attend.

Farmhouse Gang: Bronson said he attended the December meeting of the Farmhouse Gang, and picked up several brochures titled, "Travel the North Puget Sound Car-Free" (on file at the Port office).

NEW BUSINESS:

Requests for proposals for re-shingling Wharf roof and replacing gutters: Patton reported two estimates were obtained: re-shingling the roof for $16,000 and replacing the gutters for $3,200. Bronson asked Patton to look into the cost and research the durability of heavy-duty plastic gutters, and Patton said he would inform the Board of his findings via email./r

Patton noted that the Port is starting off 2010 with about $100,000 in the bank, which is $15,000 more than anticipated. The Port received more in levy revenue than expected and spent less on fuel, etc. Patton provided end-of-year financial curves that illustrated this situation. He said he would like to go forward and solicit Requests for Proposals for the roof re-shingling and gutter replacement as soon as possible, since the Port will now also have enough money to get started on the pumpout station. There will be no need to sequence the pumpout station and receipt of reimbursement for that before attending to the roof and gutters. The Board agreed./r

ANNOUNCEMENTS & ADMINISTRATIVE ACTIONS:

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, February 10, 2010, in the Coupeville Recreation Hall, located at 901 Alexander Street in Coupeville, WA.

Monthly Financial Status Report: MacLeod-Roberts submitted the final November and December financial statements.

ACTION: A motion was made by Weber and seconded by Bronson to accept the final November and December financial statements as submitted. The motion passed unanimously./r

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 Bronson to approve by signature the December 2009 vouchers, numbers #1217 - #1241 for a total amount of $23,576.96. The motion passed unanimously.

ADJOURNMENT: There being no further business to come before the Board, Bronson adjourned the meeting at 12:42 p.m.