PORT OF ORCAS
Minutes of the Regular Meeting
September 9, 2004

Call to order and confirmation of a quorum The meeting was called to order at 7:00 P.M. in the Port conference room by Ulanah McCoy, Chairman. A quorum was present. Attending were: Ulanah McCoy, Steve Hopkins, Al Edwards, Jack Becker, Bea vonTobel, Ed LeCocq, Jr., Mal Gross.

Approval of minutesMcCoy moved, Hopkins seconded approval of the minutes of the regular meeting of August 26, 2004 as presented, and the motion was unanimously carried.

Public access time

None Unfinished Business

1. Hangar Lease Extension Proposal---continued discussion Mal Gross and Commissioner Edwards outlined for the members a proposal for extending the current leases to 2036, or possible gains to the Port by becoming the owner of the 23 hangars in 2013 and 2015.

Edwards presented figures he had worked up to compare the two scenerios, which he and Gross had discussed at length.

Gross noted some reasons why it might be to the Port's advantage (as well as the current owners) to rewrite the leases to expire in 2036, and noted that if the Port were to become the owners when the current leases expire, it was as possible to earn money as to lose money.

After further discussion, Commissioner Hopkins noted that a discussion of real estate matters should occur in executive session. Chairman McCoy noted that this could occur at the next regular meeting.

2. Pending Litigation: status reportChairman McCoy stated that a letter had been received from the FAA via Port Counsel Hancock that the Kihlstrom complaint had been dismissed.

McCoy also stated that the Stevens matter had a September 24, 2004 court date scheduled.

3. Crack Sealing: status reportAs noted in the airport manager's report, crack sealing had been scheduled for later in the month, weather-dependent. New Business 1. Investment of excess funds The airport manager reported that $50,000 had been placed in a six-month CD with Islanders Bank, at a rate of 1.75%. This CD is scheduled to mature on March 9, 2005.

2. Gate Repairs/ReconstructionAs noted in the airport manager's report, Gateway Controls had submitted an estimate for gate repair/reconstruction. After discussion, the Commissioners asked the airport manager to schedule repairs on three pedestrian gates (Schoen Lane, Aeroview, Grasylvania) and one aircraft gate (Griot) as soon as possible.

The Commissioners also asked the airport manager to check on whether there might be any legal recourse to obtain some financial relief from either the original fence installer or the engineering company.

3. Medical stipend adjustmentHopkins moved, Becker seconded approval of increasing the airport manager's medical stipend to $350.10/month starting with the September payroll, and the motion was unanimously carried.

Airport Manager's Report Communications were received from: 1)Diana Hancock, letter dated 9/1/04, re Kihlstrom matter; 2)Washington State Auditor, letter and report dated 9/3/04, re 2003 audit of federal funds. The airport manager reported on: 1. Around the Port a. Crack Sealing Update b. Hangar Break-In c. South Windsock Pole Replacement d. VASI Bank Outage e. Griot Gate, Part IV 2. Health Insurance Rates for 2004-5 3. Out of Office Times 4. End of Season Evaluation of Part-Time Operations Assistant

Items were either informational in nature or were dealt with during previous portions of the regular meeting.

Treasurer's Report The treasurer's report was submitted for perusal by the members.

Approval of VouchersMcCoy moved, Hopkins seconded approval of general fund vouchers for August 2004 in the amount of $2,163.39, and the motion was unanimously carried.

Next Meeting and Adjournment The next regular meeting of the Commission was scheduled for 7:00P.M., September 23, 2004 in the Port conference room.

Prepared by Bea Steve Hopkins, Secretary