PORT COMMISSION MEETING – December 22, 2003


The Port of Port Townsend Commission met in regular session at the Hudson Point Marina Room, Port Townsend, WA.

Present:	Commissioners – Beck, Pirner and Sokol
		Executive Director – Crockett
		Auditor – Taylor
		Facilities Manager – Pivarnik
		Operations Manager – Radon
		Attorney – Harris
	
I.	CALL TO ORDER:  The meeting was called to order at 9:00 AM.

II.	ADMINISTRATION OF OATH OF OFFICE FOR COMMISSIONER BOB SOKOL:
	County Auditor Donna Eldridge and Karen Cartmel, Deputy Auditor 
	administered the Oath of Office to Commissioner District #1 Bob Sokol.

III.	APPROVAL OF AGENDA:
	Upon motion of Commissioner Pirner, the Agenda was unanimously 
	approved with the following changes:

	Items added:
		V. Old Business 
		   D. City/State Shoreline Master Plan Discussion
	Items added:
		VI.New Business
		   D. Direction on Hotel Request for Proposal for Hudson Point

IV. 	CONSENT AGENDA:
	A. Approval of Minutes – December 10, 2003
	B. Approval of Warrants: 
		#29301 through #29301 in the amount of $1,330.40
		#29302 through #29324 in the amount of $26,710.83
		#29325 through #29328 in the amount of $25,667.10
		#29329 through #29378 in the amount of $175,925.54

	Upon motion of Commissioner Pirner, the Consent Agenda was unanimously 
	approved.
 
V.	PUBLIC COMMENTS (not related to Agenda):  None

VI.	OLD BUSINESS:
	A. Resolution No. 409-03 – Adopting the Comprehensive Scheme of Harbor 
	   Improvements Update 2003 for the Port of Port Townsend.

	This resolution formalizes the Commission’s approval at its last meeting 
	of the 2003 Comprehensive Scheme of Harbor Improvements.

	Commissioner Beck moved to approve Resolution No. 409-03 Adopting the 2003 
	Comprehensive Scheme of Harbor Improvements with the preferred alternatives 
	as selected in September 2003. The motion carried by a unanimous vote.

	B. Possible Adoption of 2003 Master Plan for Jefferson County International 
	   Airport

	Commissioner Sokol noted the hearing had been held at the last meeting. 

	Mr. Crockett reported that by the December 17th close of the SEPA formal 
	comment period only one comment had been received. In its request, the 
	Department of Ecology asked to be notified by the Port, should its further 
	development at the airport uncover any contaminated soils or water. Copies 
	of this comment were given to Commissioners and would be added to the hard 
	copy of the Master Plan. Mary Vargas of the FAA said that once she has a 
	copy of the formal resolution, the FAA could begin its formal approval phase, 
	which should be complete by the end of January or first of February.
 
	Commissioner Pirner moved to adopt Resolution No. 410-03 Adopting the 2003 
	Master Plan for Jefferson County International Airport. The motion carried 
	by a unanimous vote.

	Mr. Crockett reported that Gabe Ornelas and other citizens had spoken at the 
	last BOCC meeting regarding the airport overlay and Comprehensive Plan 
	amendments. Following this hearing, the BOCC asked the Port to host a public 
	forum before January 20, 2004 to brief citizens on the Port’s position on the 
	overlay and give citizens another opportunity to ask questions.
 
	Staff and the Commission discussed whether it was necessary for the Port to 
	file an amendment to the Comprehensive Plan given that the noise overlay is 
	a settlement of a Growth Management Hearings Board appeal. Staff said the 
	amendment as it exists would be to adopt a noise overlay or airport overlay 
	zone and changing all use tables in that area of the 55 DNL. Staff agreed to 
	send a personal invitation to the individuals who attended the BOCC hearing 
	to a Thursday, January 15 formal presentation in the Hadlock area.
 
	C. Relocation Costs for Andersen Machine Shop

	Mr. Pivarnik provided background of the settlement negotiations regarding 
	moving the Andersen Machine Shop out of the Puget Sound Energy power easement 
	area. Relocation costs were $8,900 and Staff recommends settling this claim.
 
	Commissioner Sokol moved that the Commission approve the terms set forth in 
	a letter to Mr. Andersen. The motion carried by unanimous vote. 

	D. City/State Shoreline Master Plan (SMP) Discussion
	
	Mr. Crockett reported that Staff had met with the City on December 16 
	regarding Hudson Point and has documented the Port’s preference that the 
	City first finish other planning efforts (SMP update, City Comprehensive 
	Plan, municipal code, and City waterfront plan), adding that a detailed 
	plan for Hudson Point could not be done until it is known what uses would 
	be allowed there. Until these other processes are finished, the Port could 
	work on necessary marina upgrades and postpone any upland changes, with the 
	possible exception of the replacement of a restroom/shower facility. Referring 
	to specific statements in the summary of the SMP guidelines sent by the 
	Washington Public Ports Association (WPPA), he recommended the Port not rush 
	into a planning process. City representatives David Timmons, Judy Surber and 
	John Watts would likely attend the next Port workshop on January 14.

	Commissioners pointed out that these four other planning processes present 
	many opportunities for City and Port cooperation, adding that it costs the 
	Port valuable Staff time to participate in any planning process.
 
VII.	NEW BUSINESS:

	A. Letter of Support for State Ferry Improvements

	Mr. Crockett said that while he had been unable to attend a meeting to 
	discuss improvements to the Keystone Ferry terminal and an upgrade on the 
	Port Townsend side, there has been good press coverage. He spoke about the 
	importance of upgrading the old ferries and docking facilities in order to 
	handle a variety of emergencies. Staff recommends the Port write a letter 
	of support for the Commission’s signature to Washington State Ferries 
	supporting the upgrades. Commissioners also spoke in favor of Staff drafting 
	a letter of support on behalf of the Commission to Washington State Ferries. 
	It was noted that another letter might be sent during the formal public process. 
 
	B. Distressed Area Tax Deferral
                                       
	Mr. Crockett reported that the Distressed Area Sales/Tax Deferral Program 
	would sunset July 1, 2004 unless reauthorized. The WPPA is suggesting Ports 
	send letters to State representatives proposing the legislation and also a 
	letter of support during legislative session. If there is no objection from 
	the Commission, he would send a letter on the Commission’s behalf proposing 
	the legislation and return with a second letter for Commission’s signature 
	once the legislature is in session. There was no objection by the Commission 
	to sending the letter.

	C. Santa Maria Shipping
	    
	Mr. Crockett explained the Port’s talks with Santa Maria Shipping about their 
	search for one site to construct 10,000-ton coastal feeder vessels, no longer 
	than 400 feet in length. They are expected to choose in mid-January from among 
	PT and two other sites. Although the proposed area is within a pure marine 
	industrial zone, there are City permitting issues, even though the Port has 
	an overlay zone, which allows building up to 75 feet, the City would also have 
	to agree to a slight footprint modification. The operation would be outside the 
	200-foot shoreline master plan area, but would require a rail system. The Company 
	has hired environmental firm, Landau Associates. The Port would exercise due 
	diligence on the company, as will the EDC. Santa Maria expects to start with 50-60 
	employees. There was further discussion about building access and the potential 
	economic impact of siting this facility in Port Townsend.
 
	D. Direction on Hotel Request for Proposal for Hudson Point

	Mr. Pivarnik said he spoke to Carol McGough and she had asked the Port’s position 
 	on the hotel building now that the Port has completed the Comprehensive Scheme. He 
	solicited the Commission’s input on whether to follow through with an RFP process 
	whereby the Port might solicit proposals from not only the Port Townsend area, but 
	other areas and other marine related uses as well. Mr. Crockett noted that given 
	the Port’s financial condition and other needed marina improvements, it would be 
	necessary to state the current conditions and that the Port would not be able to 
	engage in any rehabilitation or creosote mitigation. The Washington Engineering 
	report could be given to any prospective tenant. The Port would also need to send 
	this information to the three previous people who showed interest in the hotel.
 
	Commissioners spoke in favor of Staff preparing a draft RFP for Commission 
	consideration at the January workshop that would be in compliance with the State 
	Shoreline Master Plan.
 
VIII.	STAFF COMMENTS:
  
	Mr. Harris:
	He proposed that in the near future the Commission and Staff discuss ideas that 
	arose from the WPPA Land Use Planning Seminar regarding cleaning up the platting 
	and layout at the shipyard. Recent discussions with a shipbuilder about locating 
	in the shipyard and the possible need to vacate streets suggest the Commission 
	and Staff discuss creating a possible plan for clearing up some of the property 
	boundaries and addressing these issues in the near future. He suggested the Port 
	consider drawing up an amended plat for the whole area. Staff recognized the need 
	to resurvey the area, clean up property ownership and address unvacated streets 
	and stormwater issues.
 
	Mr. Taylor:
	Todays warrants included the final payment on the Burtz property at the airport 
	(12 acres with the rental property).
 
	Mr. Radon:
	He would soon have information to the Commission about the upcoming Seattle 
	Boat Show. He solicited from the Commission the number of guest passes needed.
 
	Last week he met with the Wooden Boat Foundation regarding preplanning for 
	RV spaces for the next Wooden Boat Festival.
 
	With the Department of Homeland Security having announced the raising of the 
	alert status to high, the next level of security – Marsec Level II – would be 
	implemented at the Port, which would involve locking up launch ramps from dusk 
	to dawn.
 
	Mr. Pivarnik:
	Thanked the Commission for their support this year with the planning process.
 
XI.	PUBLIC COMMENT:   None

X.	COMMISSIONER COMMENTS:
 
	Commissioner Beck:
	In attending the City Parking Committee meeting, he learned that they are still 
	in a dilemma about parking issues.
 
	The Navy extended the period of public comments for the Environmental Impact 
	Statement on the Dabob Range Expansion. In concern for the economic impacts 
	of this potential expansion, he suggested submitting the EDC’s report on usage 
	of the Pleasant Harbor marina. Staff agreed to follow up.

	Commissioner Pirner:
	He attended the Community Investment Funding meeting where all of the projects 
	from the City of Port Townsend, PUD No. 1, Jefferson County, and Port of Port 
	Townsend were passed to the BOCC for final approval. He would try to forward 
	to the other Commissioners a copy of the Resolution. Mr. Crockett asked whether 
	emergency requests to increase economic development might be made, such as those 
	related to the Santa Maria project. Commissioner Pirner confirmed there would be 
	consideration of the request.
 
	Commissioner Sokol:
	He commented that it feels good to have the planning effort behind us. He 
	recognized the effort by Staff and the public. He looks forward to 2004 and 
	implementing the adopted plans.
 
XI.	NEXT MEETING:
	Wednesday, January 14, 2004 at 1:00 PM at the Hudson Point Marina Room, Port 
	Townsend, WA. A workshop would begin at 9:30 AM.

XII.	ADJOURNMENT:
	The meeting was adjourned at 10:20 AM, there being no further business to 
	come before the Commission.

ATTEST:

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							President


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Secretary						Vice President