Port of Orcas
Minutes of the Regular Meeting
September 22, 2005

Call to order and confirmation of a quorum The meeting was called to order at 7:00P.M. in the Port conference room by Steve Hopkins, Chairman . A quorum was present. Attending were: Steve Hopkins, Ulanah McCoy, Al Edwards, Jack Becker, Eric Gourley, Paul Vierthaler, Robin Watson, Barbara LaBrash, Frank McCormick, Dick Griot, Byron Otten.

Approval of minutesMcCoy moved, Becker seconded approval of the minutes of the regular meeting of September 8, 2005 as presented, and the motion was unanimously carried.

Public access timeChairman Hopkins asked if there were any comments from the public which were unrelated to item #2 under unfinished business. Hearing none, Hopkins asked to rearrange the unfinished business agenda so that item #2 could be handled first for the convenience of the public.

Unfinished Business

1. Tariff #7: Solicitation of Additional Public InputHopkins opened this item for discussion. Becker introduced Frank McCormick who reported on research into the actual FAA orders, advisories and policies regarding "Through the Fence" operations. McCormack utilized his contacts at FAA headquarters to obtain copies of all FAA documents that refer to the subject. His review of the documents indicated that FAA policy was intended to ensure safety in airport operations and to prevent discriminatory commercial business practices. Discussion ensued. The general conclusion was that we do not have a safety problem and that the only commercial operation that crosses the property boundary is subject to Tariff # 8 - Private Property Access Fees, Commercial Businesses. Therefore, there are no grounds for the FAA to suggest that additional user access fees should by charged.

Becker then reported on research into the assertion that properties with taxiway access are taxed at a higher rate and thus already paying extra taxes for the right of access. Becker utilized the San Juan County Assessor's Office web site to determine the assessed value of the land only (no building or improvements were included in the evaluation) for all properties that were subject to the original Ferris deed. Additionally other properties adjacent to the airport were checked. A copy of the spreadsheet was distributed. Generally the results were inconclusive. Though areas such as Grasylvania and Aeroview are assessed very high, other properties with taxiway access are not particularly out of line with the surrounding area. Also, property valuations west of the airport tended to be higher then those on the east side. Both Hopkins and Becker talked to staff members at the Assessor's Office and were repeatedly told that the reason those properties were assessed so high is that they are more desirable and therefore command higher market values. The consensus was that the property assessment issue is too murky and full of inconsistencies to be meaningful as an argument against user fees.

Becker offered to draft a letter to the FAA stating the Port's opinion that the current polices and tariffs of the Port meet the FAAA requirements.

2. Looking Down the Runway: Continuing Discussion Hopkins reported that SJ C Public Works was still looking into how the Port and the County could partner to purchase the property at the ferry landing. Nothing solid yet to report.

Becker noted that no further action had occurred regarding reopening of the stormwater grant from SJC.

Becker also noted that no further action had occurred on the fiber optic grant application.

New Business

1. Sale of Hanger #8 McCoy moved and Edwards seconded a motion to not exercise the Port's first right of purchase. The motion was unanimously approved.

McCoy moved and Edwards seconded a motion to approve the assignment of the hanger lease. The motion was unanimously approved.

2. 2006 Budget Preparation Discussion.Several items on the 2006 Budget proposed by the Airport Manager were discussed. The Airport Manager's annual evaluation is due. Each commissioner will complete the evaluation form and turn it in by the next meeting. Becker agreed to compile the results and meet with the Airport Manager to discuss the evaluations following the next meeting. Becker also agreed to research and make recommendations regarding the Airport Manager's salary by the next meeting.

Airport Manager's Report Communications were received from: 1) Diana Hancock letter re document release; 2) SJC Auditor e-mail re mileage reimbursement; 3) WA Dept of Revenue notice re leasehold taxes; 4) WPPA Newsletter

The airport manager's reported was discussed. No action required.

Approval of Payroll/VouchersBecker moved, McCoy seconded approval of September 2005 general fund expenditures in the amount of $2,870.01, and the motion was unanimously carried.

Becker moved, McCoy seconded approval of September 2005 payroll in the amount of $4,635.35 and the motion was unanimously carried.

Next Meeting and Adjournment The next regular meeting of the Commission was scheduled for 7:00P.M., October 13, 2005 in the Port conference room.

The meeting adjourned at 7:55P.M.

Minutes prepared by Jack Becker, Commissioner and Secretary