PORT OF LOPEZ

							                                 PORT OF LOPEZ
                           BOARD OF COMMISSIONERS
                       MINUTES OF THE REGULAR MEETING OF
                                JANUARY 13, 2011


I.     CALL TO ORDER
The Board of Commissioners for the Port of Lopez met in Regular Session on December 9,
2010 at Grace Episcopal Church. Chair Stephens called the meeting to order at 7:05 pm.
Present were Commissioners Dan Post and Bruce Dunlop, Secretary Helen Cosgrove and
numerous guests.

II.   ELECTION OF CHAIRMAN
Stephens asked for nominations for Chairman for 2011. Post nominated Dunlop, Stephens
seconded the motion. The motion passed unanimously.

III.  REGULAR BUSINESS
A.    Approval of Minutes from the Regular Meeting on December 9, 2010
Post moved, seconded by Dunlop to approve the minutes of the December 9th meeting as
presented. The motion passed unanimously.

B.     Approval of Vouchers and Payroll
Cosgrove said that extra expenses included engineering fees for Reid Middleton, quarterly
leasehold tax and plumbing repair to Channel Road house. Post moved, seconded by
Stephens to approve payment from the General Fund vouchers in the amount of $16,133.81
for 2010 and $600.00 for 2011 and payroll in the amount of $210.00. The motion passed
unanimously.

C.     Review of Correspondence
          1. Letter from WPPA re: 2011 dues
          2. Notice from SJC Health & Community Services re: septic system inspection
          3. Notice from SJC re: derelict vessel removal program
          4. Small works roster application from Sierra Sante Fe Corp – chip
             sealing/paving
          5. Quarterly report from the Port of Port Townsend

D.     Financial Report
Cosgrove distributed copies of the general fund and reserve fund reports for 2010 and
2011. Ended year with $48,700 in the general fund and $343,700 in the reserve fund;
transferred $35,000 from the general fund to the reserve fund. Has submitted request to
FAA for reimbursement of engineering fees, will submit one to WSDOT tomorrow. Year 2010
expenditures under budget, have collected approximately 50% of billings for hangar leases,
storage and hangar rents.

E.     Advisory Report
None

F.     Personal Appearances
Dunlop noted that everyone has an opportunity to speak. He asked if anyone had anything
other than the transfer station to discuss.

Dwight Lewis suggested the Port forgo the asphalt project and buy the Hiyu ferry to serve
Lopez Island.




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Larry Hendel asked if the Port was going to do anything about the trees on the northend of
the airport, they are becoming an aviation hazard. Dunlop explained that the Port is
currently working with the FAA and looking at options to resolve the issue of the trees on
the northend, hopefully permanently. A survey was completed on the trees when the
surveyors were up working here last summer on the taxiway improvements; trying to work
out a solution that would meet FAA requirements and satisfy the Port and property owner.
The FAA would prefer to have the trees cut, they have been topped before and if they had
been cut down in the past, this issue wouldn’t have to be dealt with again.

Dunlop said the Port has not decided to take over running the transfer station but have
been approached by members of the community and could/would the Port take over the
operation of the transfer station. No decisions have been made. A letter was sent to the
county requesting they send the Port any information related to the solid waste issue.
Dunlop suggested starting from the front and allowing everyone a change to say something
or not.
Some of the comments/questions included:

      The Port could probably operate more efficiency, wouldn’t have to support other
       county departments
      Could have more Lopezians working at the transfer station, a good fit for the Port
       authority to oversee
      Thinks it’s a crazy idea for the Port to run the transfer station, Port knows nothing
       about running the dump, would become a disaster. Let privatization occur or let
       county continue to operate. If the Port wants to spend money, build a new terminal
       building.
      Seems like an odd arrangement for the Port to run solid waste, but seems to be the
       only entity that could take over.
      In favor, have knowledgeable and capable staff that could continue to run the
       facility; having local control a good policy.
      This meeting is premature, not ready to make any decisions, need to gather more
       information.
      A feasibility study needs to be prepared, determine the costs associated with
       operating.
      Put to a vote of the residents of Lopez.
      Establish a separate District other than the Port to operate.
      Too much responsibility for the commissioners to undertake with their current
       obligations. Would limit number of others who may want to be a commissioner but
       won’t get involved because of the transfer station.
      How much time does the Port have to do the proper studies? When is the county
       going to make a decision?
      Have a dedicated staff currently at the transfer station, the county has already
       established a framework,
      Against curb side pickup, want to be able to bring in garbage.
      Take Back the Dump (TBTD) a group already working on and researching the issue,
       have looked at some financing scenarios, people in that organization would like to
       work with the Port.
      The Port is an existing entity that has the ability to operate the facility.
      The RFP has not been prepared by the county; current operations for all islands are
       funded through the end of the year.
      Can operate with interlocal agreement with the county for handling payroll and other
       functions; Port would oversee not operate.
      May not necessarily haul garbage, only deal with recycled items.
      Costs could be controlled better, separated from other county operations funded by
       the transfer stations.




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G.     Commissioner Reports
None

H.     Commissioners Additions to the Agenda
None

IV.     UNFINISHED BUSINESS
A.      Discussion on Lopez Transfer Station Options as a Port Facility
Stephens explained what it would entail to form a utility district, another entity needing a
board to oversee it. A port district is a local governmental entity formed to promote
economic development. The Port of Friday Harbor runs several operations and hires people
to operate those operations; save 1.5 jobs and may create additional jobs. A utility district
would be required to report to the county; the Port is a separate entity and governs itself.
Stephens also noted that an RFP has not been put out; the council wants to keep the 3
station operation; the council has formed a subcommittee to look at the transfer station
issues. The Port has the advantage of being able to enter into agreements with other
governmental entities; the Port should be able to save and create jobs. The feasibility study
needs to be done now and the Port needs to be ready when the RFP comes out; the Port
should be the fallback position if the county decides to divorce itself or shut down the
Lopez operation. Before any decision is made to respond to the RFP, the residents of Lopez
should have the opportunity to review the feasibility study and vote on it. Dunlop said he
received a copy of a financial scenario that was being passed around by TBTD. He also
noted that a special meeting will be required because there is not enough time during a
regular meeting to go over all of this in detail. Dunlop then reviewed the spreadsheet; some
costs won’t change with the amount of garbage processed; if the goal is to reduce the
amount of garbage, then costs would change but not necessarily proportionately; monies
generated from recyclables varies all the time with market costs. Dunlop noted that there is
not a whole lot of money here; Lopez is really tiny and doesn’t produce much garbage; the
scenario barely breaks even on operations; unexpected expenses would put the operation in
the red; would be difficult to run the facility. Post noted that that was Dunlop’s opinion and
not his. It was noted that there are other assumptions to be made with the financial
scenario presented. A comment was made that a feasibility study needs to be done in order
to determine if the concept would work and there are other issues than the bottom line – the
environment, the fragility of the islands. It was suggested that the approach change – what
kind of facility does the island want and what will it cost to support that. It was suggested
that many would be willing to pay some additional amount of taxes to support the transfer
facility and keep rates low, to encourage people to recycle; not burn or bury on their
property or dispose of their garbage along the roadside. Post said that what he wanted to
see was a facility that used Lopez haulers to transport garbage and recycling and not
drivers from Orcas; to generate jobs for Lopezians, recycle everything possible; transfer
station only needs to break even not be profitable. Neil Hanson said that he had met with
county officials regarding savings that he saw could be easily made; that Lopez could serve
as a pilot program for an alternative system; Twisp currently has a good system that could
be replicated here; there are models available that the Port could use. Dunlop said that
between now and the next meeting he would work with a group to clear up the financial
questions and as a community what do we want to do; reusing as much as possible and
have a community goal of diverting garbage from landfills. Look at the vision and then the
financial options of how to pay for it; then gain community support for how this should be
done. Stephens said if we are going to do a committee, then lets get one organized. Post
said sometimes we need to look outside the box in finding a solution; that he knows
recycling; used to haul recycling from the island; wants to come up with a proposal and run
it by others for review and comments. Post will organize a committee and be ready to
present something at the next meeting. Stephens said that at some point someone else
needs to review the assumptions/scenario to determine if it is realistic.




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B.     2011 Construction Project
Stephens said that WSDOT is not ready for requests for additional funding until March.
Cosgrove noted she completed the AIS form, which made the Port eligible for funding.
Stephens said addendum #4 from Reid Middleton was received and included additional
work needed for the new run-up ramp, change in signage and additional survey expenses.
Stephens moved, seconded by Post to approve addendum #4. The motion passed
unanimously. Cosgrove said that Vasser was mailing an original and she would get together
with Dunlop for his signature once she receives it.

C.      Website
Cosgrove asked about whether the minutes should be posted on the website before or after
approval. Post said no other boards put unapproved minutes on their websites. By
consensus, it was decided that o minutes will be available until after approval. Cosgrove
also asked if the budget should be on the website. Dunlop suggested putting the budget in
for the year but not update it with the actual expenses and income and then once the year is
final, put that budget in.

V.     NEW BUSINESS
A.     Long Term Pothole Solution
Post said he had spoken to Fowler who graded the drive and didn’t put any rock into the
potholes. Dunlop suggested having Fowler grade it every few months. Post suggested that
Fowler repair as needed. By consensus, it was agreed to have Fowler grade/fill as needed.
Post asked that Fowler not only take care of the long term parking area but also the entrance
into the lower hangars and the main parking lot by the Port building. Cosgrove to contact
Fowler.

B.     FAA Capital Improvement Projects Plan for 2011-2016 due 2/1/11
Cosgrove reported that the FAA requires the Port to update their capital improvement plan
every year. The items on the list were reviewed and some of the projects were postponed to
future years. Cosgrove to update and send to commissioners for review prior to completing
on FAA website. The trees on the northend need to be dealt with either by allowing the Port
to remove the trees and replace with lower growing trees; through securing an avigation
easement or acquisition. Will continue to work on this issue.

VI.    ADJOURNMENT
There being no further business, the meeting adjourned at 9:05 pm.




Chairman                                          Secretary




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