AGENDA Board of Directors Meeting Fort Worden Public Development Authority (FWPDA) Wednesday, May 22, 2019 | 9:00 a.m. – 12:00 p.m. Commons Building 210, Room A, Fort Worden

Regular Board Meeting

I. Call to Order

II. Roll Call & Staff Introductions ❖ Donald Cobb Jr, Executive Chef ❖ John Coltharp, Catering Manager

III. Community Partnership Presentation: Port Townsend Pétanque Alliance

IV. Changes to the Agenda

V. Public Comment

VI. Correspondence ❖ Partners Report ❖ April 16, 2019 Executive Committee Minutes ❖ Cash Flow Report ❖ April 24, 2019 email from David Thielk to Board of Directors

VII. Consent Agenda A. Review and Approval of Regular Board Meeting Minutes, April 24, 2019 Action: Motion to approve April 24, 2019 Board Meeting Minutes

VIII. Review and Discussion of Financials A. Staff Report B. Board Discussion

IX. Makers Square Construction Contract Award A. Staff Report B. Board Discussion Action: Move to approve Resolution 19-10 authorizing the Executive Director to execute a construction contract with Clark Construction, the approved lowest responsive, responsible bidder, for the Makers Square project, and to sign all necessary documents for the project.

Page 1 of 67 X. Website Upgrades A. Staff Report B. Board Discussion Action: Move to approve Resolution 19-11 authorizing the Executive Director to enter into a service agreement not to exceed $25,000 with Flying Crow to refresh FWPDA’s website.

XI. Staff Report A. State Parks Capital Budget B. Current Projects & Major Repairs C. Glamping Update D. Marketing and Sales Report E. Chetzemoka Interpretive Trail F. 4th of July G. Neighborhood Advisory Committee H. Incident Command Training

XII. Public Comment

XIII. Next Meetings ❖ Executive Committee Meeting, June 18, 2019, 9 a.m. ❖ Board of Directors Meeting June 26, 2019, 9 a.m.

XIV. Executive Session to review personnel matters and lease terms and conditions in accordance with RCW 42.30.140 (4) and RCW 42.30.110 (c), respectively.

XV. Adjourn

Page 2 of 67 Page 3 of 67 Fort Worden Programming Partners May 2019

MARINE SCIENCE CENTER • Summer hours begin Fri, May 24: Both exhibits open 11AM to 5PM Wednesday through Monday • A Few highlights from last month to share: o Water World collaborative with Centrum had 60 5th graders explore art and science of water o Public meeting for Marine Facilities Plan o State Parks plans to submit a preferred alternative for the Fort Worden Marine Facilities plan to the State Parks Commission by August 2019 o Earthday 150 volunteers collected 700 lbs of beach trash around PT

PT SCHOOL OF THE ARTS Port Townsend School of the Arts : where arts education builds community connected by a passion for creativity. Our mission is to bring out the artist in everyone. • PTSA is offering a record number of classes and workshops for summer and fall 2019 available in an array of mediums: fiber, ceramics, book arts, photography, drawing, painting, collage, mixed media, and more! • Series: Exploring the Intersection of Art and the Environment. Featuring Meg Kaczyk, David Eisenhour, Lisa Gilley and Margie McDonald, May 22 (occasional lecture series co- sponsored by PtSA and Northwind Arts Center • Upcoming: o June 1st, 5:00-8:00pm: Art Walk – PTSA Downtown, 236 Taylor Street o June 12th, 7:00pm: Print Night, PTSA at Fort Worden, Building 306 o First and Third Fridays, 7pm – 10pm: BUNKER – Open Studio for Teens age 13-19, PTSA at Fort Worden, Building 306 o June 25th-28th: Visiting Artist Workshop: Earth Alchemy: Create Amazing Depth & Texture with Unusual Materials with Sandra Duran Wilson

PORT TOWNSEND SCHOOL OF WOODWORKING • PTSW Timber Frame class was selected to build the new pavilion at Children's Hospital this summer • This month Scandinavian Green Woodworking with Jarrod Dahl is on 5/27/19 and still open for enrolment. along with Hand Tool Heaven on 6/10/19 • Planning to have an Open House in August during the THING festival

MADRONA MINDBODY INSTITUTE • Last month, Madrona MindBody hosted 25 people from 12 countries for a 10 day residential training • Now holding five weekly spin classes • Upcoming:

Page 4 of 67 o May 20th onward Mon/Fri 11:00am – 12:00pm: New Yoga with Weights classes: fun class that includes cardio, free weights, yogic stretching and barre work o May 17th & 18th: Wildcore Workshop with Brietta Leader: Developing Your Inner Energy Warrior with a blend of choreography, conscious dance, breath work and belonging. o May 30th – June 2nd: iRest Meditation Immersion with Nole Giulini: The practice of iRest® helps calm the nervous system, integrate difficult emotions and thoughts, and helps find authentic responses to life’s challenges. o June 9th: Continuum Playshop with Rainey: An afternoon workship using sound, breath and subtle movement to enliven your body. • Save the date: o July 19th-21st our 15th ANNUAL Conscious Dance TRIBAL GATHERING: Resilience and the Power of Presence ~ Bringing together teachers and dancers of the pacific northwest in a weekend workshop.

RAINSHADOW RECORDING STUDIO • We welcomed Conor Sisk to Rainshadow Recording as resident Engineer/Producer • Upcoming: o May 16thth, 7:30pm: Doug MacLeod Concert o May 24th, 7:30pm: Hiroya Tsukamoto in Concert o Everett Moran Studio will host KEXP for “THING!” o May 25th 7:30pm: Keith Greeninger & Dayan Kai Concert

FRIENDS OF FORT WORDEN • The second in the 2019 “Sundays in the Park” series of natural history walks is an intertidal exploration on May 19. Led by Wendy Feltham, the date was chosen to coincide with a -1.5 tide, which will expose intertidal life on the beach. The exploration begins at 10:00 am and lasts about 2 hours. The walk is free for members of FFW. Nonmembers are asked for a $5 donation. For more information or to register contact [email protected].

PENINSULA COLLEGE: • 2018-2019 Philosophy Lecture Series: Only one lecture left! Peninsula College Foundation and Fort Worden present Dr. Wes Cecil. Lectures are free and open to the public. The title for this year’s lecture series is “The Transvaluation of All Values.” Lectures meet at the Fort Worden Commons on the 3rd Thursday of the month at 6pm. Next lecture is April 16th at 6pm. Free and open to the public. • Peninsula College summer hours: Closed completely - JULY 1st through 8th and Closed again AUGUST 23rd through SEPT 2nd Office is open during summer quarter on Tues and Wed only from 10am until 4pm. (Tues July 9 – Wed Aug 21)

Page 5 of 67 Learning Center is open during summer quarter July 8 – Aug 22 Mon-Thur from 9am until 12pm

GODDARD COLLEGE • Goddard’s next program is in mid-July when we welcome the MFA in Creative Writing Program back for its thirteenth year at Fort Worden. Stay tuned for more information about visiting writers and readings in July from Goddard faculty and guests.

Page 6 of 67 APPROVED Minutes Executive Committee Meeting Fort Worden Public Development Authority (FWPDA) Tuesday, April 16, 2019 | 9 a.m. to 11 a.m. Seminar Building 297, Fort Worden

❖ Motion to approve March 19, 2019 Executive Committee Minutes: Unanimously Approved

Regular Executive Committee Meeting:

I. Call to Order: 9:00 a.m.

II. Roll Call Committee Members: Gee Heckscher, Jeff Jackson (by phone), Jane Kilburn, Norm Tonina

Staff: Dave Robison, Rufina Garay, Diane Moody, Karolina Anderson, Joan Rutkowski

Public: David Goldman, David Beckman

III. Changes to the Agenda Review of personnel issues removed from Executive Session – review of lease terms and pricing remain.

IV. Review of Draft April 24, 2019 Board Meeting Agenda Staff and the Committee reviewed the draft board agenda and added a Food and Beverage update under staff report.

V. Review of March Cash Flow Report Diane Moody reviewed the March Cash Flow report (see packet) and noted that less funds are being drawn down on the line of credit than expected. Moody noted that emergency repairs resulted in higher than expected operating expenses. Moody reported that she’s asked directors to only make essential purchases. Staff and the Committee discussed advance deposits and policy ratios.

VI. Review and Approval of March 19, 2019 Executive Committee Minutes Unanimously Approved

VII. Staff Update & Committee Discussion • Summer Event Schedule

Page 7 of 67 Robison discussed proposed summer event schedule and stated that he is seeking $30,000 in corporate sponsorships for the 4th of July Event. Robison noted that the FWPDA goal is to break even. Staff and the Committee discussed the talent list for 4th of July and the upcoming Thing! Festival produced by Seattle Theater Group (STG) on August 24 and 25. Robison stated that STG is committed to hiring locally (i.e. Thunderbull Productions, Centrum production interns, etc.). Staff and the Committee discussed performance venues across property, the transportation plan and various ways that STG has engaged partner participation. Staff and the committee discussed parking, transportation, lodging, noise mitigation, and security. Discussion also included the importance of developing an Emergency Response Plan for the FWPDA. Robison stated that STG will contract directly with the police department and bring in their own security. Robison discussed a presentation that he and Josh LaBelle (STG) made to the Washington Heritage Caucus.

• Makers Square Update David Beckman reported that a non-mandatory pre-bid walk through has occurred that included three interested general contractors. Staff and the Committee discussed the bid process and timeline. Staff and the Committee discussed the need for a Makers Square operations plan and RFP process. Staff agreed to update the Committee on the progress of the operation plan, and noted that we will further discuss the RFP process in the May Executive Committee. Staff and Committee members discussed the fact that we have yet to work out the relationship between the Foundation and the PDA in terms of who will operate the facility. It will be decided by year’s end, but no process for that decision was discussed.

• 2019 Year In Review Staff and the Committee discussed the Annual Report presentation Robison and Moody made to the City Council. Robison discussed the perception that costs have increased at Fort Worden – noted that lodging and meeting rooms have increased over the past five years but that they are in line with other comparable, local properties. Staff and the Committee discussed partner rates, earn-backs and the appraisal conducted by State Parks in 2010/2011. Robison noted that discussions have begun with State Parks regarding the revenue sharing with WSP in year 7.

• Glamping Robison reported that two bids have been received (approximately two thousand dollars apart). Staff and the Committee discussed the bid process, the project timeline and strategies for moving forward. Committee and staff discussed Kitsap Bank bond financing, timeline, expanding project scope and loan terms.

• 2019 Operating Budget Staff and the Committee reviewed proposed revisions to the 2019 operating budget and discussed reallocating facilities and maintenance staff to the glamping project and energy efficiency projects. Staff and the Committee discussed staffing costs, maintenance costs and staffing changes. Heckscher recommended that staff summarize operating budget changes at the Board Meeting. Staff and the committee discussed leveraging accommodations to increase revenues.

• Neighborhood Advisory Committee

Page 8 of 67 Staff and the Committee discussed the Neighborhood Advisory Committee (NAC) application process, public meeting requirements and next steps. All eight NAC applicants will be recommended to the full board. Robison discussed the transportation planning process with the City and diverting staff and park users from Cherry Street to Redwood Street.

VIII. Public Comment Goldman stated that current revenue shortfalls provide incentive to move as quickly as possible to raise additional funds through the Fort Worden Foundation. Goldman noted that additional capital reserves could be tapped instead of possibly maxing out the line of credit.

Robison agreed and stated that the primary role of Fort Worden Foundation is to pursue large gifts (six figures and above).

IX. Adjourned: 10:26 a.m.

X. Executive Session to review lease terms and pricing in accordance with RCW 42.30.110 (c). The Executive Committee entered an Executive Session to review lease terms and conditions.

Page 9 of 67 5/14/2019 Monthly Cash Flow Projection Hospitality Services Projected April May June July TOTAL 1. CASH ON HAND 70,000 175,286 21,286 119,286

2. CASH RECEIPTS Lodging & Services 387,500 510,000 615,000 650,000 2,162,500 (Main Account (Payment- Owed) 0 0 0 0 - Leases 12,000 8,000 8,000 8,000 36,000 From Advance Deposits 0 0 0 - Loan or Other Cash Injection 167,000 0 0 0 167,000 Grants 25,000 25,000 3. TOTAL CASH RECEIPTS 566,500 518,000 648,000 658,000 2,390,500

4. TOTAL CASH AVAILABLE 636,500 693,286 669,286 777,286 2,776,358

5. CASH PAID OUT Personnel and Payroll Expenses 291,214 320,000 330,000 360,000 1,301,214 General Operating 170,000 185,000 220,000 301,254 876,254 Furniture-Fixtures-Vehicles 0 Leasehold Improvements

Fund/Account Repayment 167,000 167,000 Subtotal 461,214 672,000 550,000 661,254 2,344,468 Loan Principal Payment 6. TOTAL CASH PAID OUT 461,214 672,000 550,000 661,254 2,344,468

7. CASH POSITION 175,286 21,286 119,286 116,032

Difference from previous report 6,916 (137,084) 916

Page 10 of 67 Previous Month Report Monthly Cash Flow Projection Hospitality Services Projected March April May June TOTAL 1. CASH ON HAND 154,482 51,584 168,370 158,370

2. CASH RECEIPTS Lodging & Services 382,203 410,000 475,000 492,000 1,759,203 (Main Account (Payment- Owed) 0 0 0 0 0 Leases 4,000 18,000 8,000 8,000 38,000 From Advance Deposits 0 0 0 Loan or Other Cash Injection 100,000 150,000 0 0 250,000 Grants 0 25,000 25,000 3. TOTAL CASH RECEIPTS 486,203 578,000 508,000 500,000 2,072,203

4. TOTAL CASH AVAILABLE 640,685 629,584 676,370 658,370 2,605,010

5. CASH PAID OUT Personnel and Payroll Expenses 437,219 291,214 320,000 330,000 1,378,433 General Operating 151,882 170,000 198,000 210,000 729,882 Furniture-Fixtures-Vehicles 0 Leasehold Improvements Fund/Account Repayment 0 Subtotal 589,101 461,214 518,000 540,000 2,108,315 Loan Principal Payment 6. TOTAL CASH PAID OUT 589,101 461,214 518,000 540,000 2,108,315

7. CASH POSITION 51,584 168,370 158,370 118,370

Page 11 of 67 Joan Rutkowski

From: Karolina Anderson Sent: Thursday, April 25, 2019 10:01 AM To: board Subject: Board Correspondence

Dear Board Members,

The board has received correspondence from a member of the public (see below). Please do not reply to this message as it could constitute a quorum and violate the Open Public Meetings Act. Dave will respond to Mr. Thielk next week.

Best Regards,

Karolina Anderson Executive Coordinator Fort Worden 200 Battery Way Port Townsend, WA 98368-3621 360.344.4400 ext.109 www.fortworden.org

FORT WORDEN PDA NOTICE REGARDING PUBLIC DISCLOSURE Public documents and records are available to the public as required under the Washington State Public Records Act (RCW 42.56). The information contained in all correspondences with a government entity may be disclosable to third party requesters under the Public Records Act.

From: edavidt Tk Date: April 24, 2019 at 3:38:33 PM PDT To: [email protected], Arthur Rochester , Dave Robison , Audrey Jean Subject: Thing

Please forward this to all members of the FWPDA board. Thank you.

I attended the FWPDA board meeting this morning. As well intention-ed as everyone is, I don't think anyone on the board has a clue about traffic and crowd control in a small peninsula- confined town like Port Townsend.

https://www.opb.org/news/article/npr-rural-hospital-frustrated-with-role-as-sasquatch-festivals- emergency-room/

Further, when Lela Hilton asked about the role of the advisory board, it was obvious that there was no firmly established role before committing to and during the planning of the event. The role is basically confined to "debriefing" afterwards. This is unacceptable. It is patronizing. It is sending the message that you are only doing an advisory because you have to. And that you will pick up pieces afterwards.

When are you going to dig in on life long learning? The original and current partners, mostly, are local organizations of exceptional quality. Do they bring in the big bucks? No. But they represent what you all sold to the taxpayers of WA State, the owners of Fort Worden. Now, you

Page 12 of 67 are taking up with a non local group, The Seattle Theatre Group, to create one time party events. You are violating the trust of WA State citizens with this direction.

And then there is the whole carbon foot print thing. Unless you can make a strong effort to get people here without burning gas, you are abdicating responsibility.

Dave Thielk 611 Rose Street Port Townsend, WA 98368 360-301-6005

Page 13 of 67 Minutes Board of Directors Meeting Fort Worden Public Development Authority (FWPDA) Wednesday, April 24, 2019 | 9:00 a.m. – 12:00 p.m. Commons Building 210, Room B, Fort Worden

❖ Action: Motion to approve March 27, 2019 Board Meeting Minutes Unanimously Approved ❖ Action: Motion to approve Resolution 19-06 authorizing Chief Financial Officer to sign a commitment letter for bond financing with Kitsap Bank. Unanimously Approved ❖ Action: Motion to approve Resolution 19-07 authorizing Executive Director to award a construction contract to the lowest responsive, responsible bidder for the construction of glamping project infrastructure, and to sign all necessary documents and contracts for the project. Unanimously Approved ❖ Action: Motion to approve Resolution 19-08 authorizing Executive Director to extend the draw period and scope of the energy efficiency project through Kitsap Bank. Unanimously Approved ❖ Action: Motion to approve Resolution 19-09 amending the annual operating and capital improvement fund budget for fiscal year 2019. Unanimously Approved as Amended

Regular Board Meeting: I. Call to Order: 9:00 a.m.

II. Roll Call & Introductions

Fort Worden PDA Board Members: Cindy Finnie, Jane Kilburn, Gee Heckscher, Lela Hilton, Norm Tonina, Herb Cook, Terry Umbreit

Staff: Dave Robison, Diane Moody, Rufina Garay, Karolina Anderson, Joan Rutkowski

Public: Karen Anderson, Owen Rowe, Joyce Gustafson, Renee Klein, Bill Drath, Cody Griffith, David Goldman, David Thielk, Denyse Early, Lisa Werner, Arthur Rochester, Audrey Jean, Carla Main, Rebekah McGuire, Patricia Barrett, Dennis Daneau, Curtis White, Jim Upshaw, Fayette Krause

Dave Robison introduced Joan Rutkowski, the new Executive Coordinator. Karolina Anderson is leaving to explore new educational and professional opportunities.

Rufina Garay introduced the members of the newly formed Neighborhood Advisory Committee. In attendance were Rebekah McGuire, Patricia Barrett, Karen Anderson, Dennis Daneau, Curtis White, and Audrey Jean. Jim Upshaw and Fayette Krause are the other members of the committee. Committee members who have full-time residences within a half-mile radius of Fort Worden were invited to submit

Page 14 of 67 letters of interest. The advisory committee will help the FWPDA consider noise and traffic concerns for large events and activities. Garay noted that every applicant expressed a deep love for Fort Worden.

III. Partner Presentation: Goddard College FWPDA Executive Director Dave Robison introduced Joyce Gustafson, Operations Director of Goddard College’s Port Townsend site. Gustafson is leaving her position at Goddard after having served as director of the Port Townsend campus for ten years. Jessica Plumb will serve as interim director.

Gustafson thanked FWPDA board and staff for their extraordinary commitment of time and energy to Fort Worden. She described how Goddard has offered transformative experiences for students through its progressive student-centered model. Inspired by John Dewey, Goddard asks its students what they want to learn and helps them develop individualized study plans. Gustafson said Goddard students frame their work and their lives through the lens of social justice. The Vermont campus has been doing this for 150 years and the Port Townsend site has been operating for 14 years. Goddard’s Port Townsend program offers a Masters of Fine Arts in Creative Writing and a Masters of Fine Arts in Interdisciplinary Studies. Gustafson said that students include poets and painters who have returned from wars in Iraq and Afghanistan, teachers, retired physicians, opera singers, and visual artists. She noted that alumni are making names for themselves in contemporary culture and making a name for Fort Worden as a place where magic happens. Gustafson stated that Goddard has invested significantly in Fort Worden over the years. The partnerships happening at Fort Worden through the PDA have strengthened Goddard’s endeavors and are transforming the property, she said. As she looks ahead, Gustafson said her hope for the next ten years is that FWPDA and its partners remain focused on their shared commitments.

Gustafson introduced Jessica Plumb, who has become interim director of the Port Townsend site. Plumb has a bachelor’s degree from Yale and a master’s from Goddard College. She is an award-winning filmmaker and writer, and her recent work includes co-directing “Return of the River,” a documentary about the dam removal project on the Elwha and efforts to restore its ecosystem. Plumb thanked Gustafson for her work building Goddard’s presence as a partner at Fort Worden. Plumb stated that she is completely committed to FWPDA’s lifelong learning vision. She has engaged at Fort Worden both as a learner and a program facilitator, including work directing youth programs at Centrum. Because of Goddard College’s low- residency model and presence in Port Townsend, Plumb said she was able to earn a Master of Fine Arts while raising her young daughter in a small town. Plumb stated that she has come to believe that lifelong learners are FWPDA’s lifelong customers. She is inspired by the growth of Fort Worden and its diversity of partners. Plumb noted that the low-residency educational model is no longer a new idea and has taken off. She thinks it is something the FWPDA could engage in, bringing more talented people of all stripes to the Fort to offer valuable experiences to everyone who visits. Plumb stated that the new president of the Vermont campus is deeply committed to its satellite sites, and she thanked the FWPDA for its role in making the Port Townsend site possible and supporting lifelong learning.

Board chair Norm Tonina welcomed Plumb and thanked Gustafson for being a truth teller and cooperative spirit throughout her relationship with the FWPDA.

IV. Changes to the Agenda The Executive Session was removed from the agenda.

V. Public Comment David Goldman expressed his confidence in the members of the new Neighborhood Advisory Committee. Goldman said he read their application letters, and he thanked them for offering their time and experience to the FWPDA.

Page 15 of 67 VI. Consent Agenda Review and Approval of Regular Board Meeting Minutes, March 27, 2019 Action: Motion to approve March 27, 2019 Board Meeting Minutes. Unanimously approved

VII. Review and Discussion of Financials

A. Staff Report Staff reviewed the financial memo in the board packet (on website). Diane Moody noted that overall revenue is 6% over budget. She thanked staff for helping to reduce spending, which will help offset the cost of emergency repairs stemming from the winter storm and aging infrastructure. Moody expects emergency repair needs to continue so she will be budgeting for them.

Gee Heckscher provided an overview of Capital Improvement Fund projects: ● Preservation work and improvements to building 305 windows are almost complete. ● Keypad locks are being installed in building 225. Robison noted that some partners have expressed concern about security in that building so this adds an additional layer of security for youth programming. A Department of Corrections crew is currently in 225 to refresh paint and make other interior improvements. Robison stated that the dorm accommodations will be greatly improved. ● The energy efficiency project is substantially done and remaining funds will be used for other prioritized energy efficient improvements to be completed by FWPDA staff. ● Makers Square bids are due April 30 and work may begin in June. ● Bids are in for the glamping site work and utilities, which could begin in June and go through the summer. After that, facilities staff will construct the tent platforms and erect the tents. $1.4 million is set aside for this year’s work and the tent work will continue into 2020.

Diane presented a Market Segment Report showing how much revenue is generated from partners, leisure guests, and groups across three markets: food sales, meeting space, and accommodations. Moody invited feedback on the report over the next month.

B. Board Discussion Herb Cook noted that the financial reports continue to show that the campus has enormous capital needs, including $80 to $100 million in deferred maintenance on buildings the FWPDA has taken responsibility for from Washington State Parks. He stated that while the FWPDA has been doing a good job carrying this load, everyone should be aware that it needs ongoing help through both public and private donations to keep this up over the next several years.

VIII. Glamping project update and motion authorizing Chief Financial Officer to sign a commitment letter for bond financing with Kitsap Bank.

A. Staff Report Moody provided an overview of the bond financing information in the board packet (on website). Kitsap Bank is offering up to $2 million in bond financing over a two-year period for the glamping project. Moody stated that Kitsap Bank is happy with the pro forma showing anticipated returns for glamping. This financing offer was more attractive than another option Moody explored because it involves a lower interest rate and a longer repayment term (10 years).

Page 16 of 67 B. Board Discussion Action: Motion to approve Resolution 19-06 authorizing Chief Financial Officer to sign a commitment letter for bond financing with Kitsap Bank. Unanimously approved

IX. Review of bids for infrastructure work to construct Glamping Project and resolution to authorize Executive Director to award a construction contract to the lowest responsive, responsible bidder, and to sign all necessary documents and contracts for the project.

A. Staff Report David Beckman, Director of Capital Projects, referred the board to the bid sheet showing that the FWPDA received two bids for the Glamping Project and they were within $2,000 of each other. Nordland Construction was the apparent low bidder. After confirming compliance and references, staff met with Nordland to discuss project parameters and logistical concerns related to Nordland’s current sewer project on the campus for Washington State Parks. Beckman, Heckscher, and Larry Sammons will oversee the infrastructure work, which Nordland will begin this summer. Beckman said they expect the infrastructure work to take three months to complete. The goal is for the full project to be completed in March 2020 for a test run/soft opening, he said.

B. Board Discussion Board and staff discussed construction details, anticipated marketing efforts, and the project timeline. Terry Umbreit advised that careful attention be paid to marketing the Glamping experience. The plan is to open the sites on May 1st, 2020. The regular season will be from April to October. The tents will stay up year-round and furniture will be stored in a building during the winter, Robison said. He added that experience elsewhere has shown that repeatedly taking down the tents and setting them up again leads to more wear and tear. Life expectancy for the tents is approximately eight to ten years; Robison noted that Friday Harbor’s tents (Lakedale Resort) have been up for more than ten years. A parking lot will be built on an existing access road. Vehicles will not be visible from the tents and guests will use carts for transporting their luggage, Robison said.

Action: Motion to approve Resolution 19-07 authorizing Executive Director to award a construction contract to the lowest responsive, responsible bidder for the construction of Glamping Project infrastructure, and to sign all necessary documents and contracts for the project. Unanimously approved

X. Resolution extending the draw period and scope of the energy efficiency project bond through Kitsap Bank.

A. Staff Report Moody stated that there are additional opportunities to strengthen energy efficiency by replacing boilers, expanding the storm window project to more buildings, and adding insulation in key locations. Moody noted that $400,000 remains available from the $1.6 million bond, and Kitsap Bank is open to increasing the draw period from 12 months to 24 months. No other changes would be made to the bond underwriting, she said.

B. Board Discussion None.

Action: Motion to approve Resolution 19-08 authorizing Executive Director to extend the draw period and scope of the energy efficiency project through Kitsap Bank. Unanimously approved

Page 17 of 67 XI. Board review and approval of amended annual operating and capital improvement fund budget for fiscal year 2019.

A. Staff Report As noted in the resolution, projected revenues and expenses have significantly changed for both the annual operating and capital fund budgets for 2019. See the amended hospitality and capital improvement budgets in the agenda packet (on website). Moody stated that the main reason for amending the budget is the delay in beginning the glamping project that led to a 2020 opening date. Adjustments to reduce personnel costs and delay room decor improvements (saving $101,447), as well as strong sales for the upcoming “THING” event, have helped with budget adjustments.

B. Board Discussion Umbreit reiterated the point that this adjustment is largely due to the delay in the glamping project. Board members discussed their discomfort with having zero contingency for emergency repairs. Cindy Finnie noted that as a young business, the FWPDA needs funds for emergencies such as the recent winter storm and for higher than anticipated personnel expenses. Moody stated that the budget includes contingency planning for emergency repairs and recommended adding $25,000 to the contingency budget for personnel costs.

Action: Motion to approve Resolution 19-09 amending the annual operating and capital improvement fund budget for fiscal year 2019. Unanimously Approved as Amended - $25,000 was added to the contingency budget for personnel costs.

XII. Staff Reports

A. Food & Beverage Maryna Frederiksen reported that she has reviewed the ambitious priorities she presented to the board three months ago and realized that they all boil down to improving the guest experience through staff training, quality product, and best practices for sustainability. Frederiksen stated that her staff need to know their customers and anticipate their needs in order provide an excellent guest experience. Market research shows that customers are looking for healthy food, local sources, and sustainable practices; these national trends matter to the FWPDA because it draws people from around the country, Frederiksen noted. She reported that menu changes are in motion to feature local farm items, specialty foods, local products, and great coffee. Frederiksen noted that her department is increasing its relationships with local providers and participating in community events, such as the Taste of Port Townsend. Four new farm partners were established this week. Frederiksen stated that managers are ensuring that every new hire understands this mission and that it includes supporting the local community and local farms. This will include engaging employees in learning opportunities at local farms, which also involves them in the FWDPA’s lifelong learning mission, she said. Frederiksen noted that research has indicated that when employees feel engaged in their company’s vision, employee retention can increase by nearly 25%.

Frederiksen also is planning to increase food events, including a “meet the farmer” dinner. Sustainability efforts will include being efficient with labor and food costs. Frederiksen highlighted the need to emphasize that the Food and Beverage Department uses scratch ingredients; nothing is premade. While it can be more expensive to cook from scratch, costs can be kept down through standardized recipes, portion control, and the use of seasonal products. Moody thanked the food and beverage team for their improvements to inventory control and staff training. Umbreit stated that Frederiksen’s improvements and great ideas are still being realized and will continue to benefit the

Page 18 of 67 community. Norm Tonina shared that January’s Italian Wine Dinner event was one of the best meals he has ever had.

B. Makers Square Bid Process Update Robison reported that interested contractors visited the site for a walk-through in early April. Makers Square will be a seven-acre hub for creative arts and educational opportunities. Robison stated that staff will present the board with the lowest responsive, responsible bidder in May and the hope is to begin construction in June. Robison noted that determining alternate options for the renovation of particular buildings in the square can occur once the State passes the capital budget and construction bids come in.

C. Lease Rate Appraisals Robison reported that he, Tonina, and Rufina Garay are developing a fair and transparent process for reviewing business plans. They recently received and shared with the board the business plans from Centrum, Port Townsend School of the Arts (PTSA), and KPTZ. Partners want long-term leases and while the FWPDA doesn’t approve business plans, Robison stated that there is a need to look at partners’ capabilities before entering into long-term leases. Robison said his team is developing equitable criteria for this process. For example, to value the space for KPTZ, the FWPDA is hiring an appraiser. Robison noted that this effort doesn’t mean rents will increase; the FWPDA also considers capital investments a partner will make as well as earn backs and other incentives. He stated that lease rates will be ratcheted back based on all the public benefits partners can provide the Fort and the community.

Cook asked, aren’t we trying to move in the direction of market rates? Robison said partners may always receive preferential market rates, but to be sustainable the FWPDA needs a portion of revenue to gradually move towards market rates. Robison said that the FWPDA needs to be fair and transparent and do the necessary work to ensure that incentives and credits are not perceived by the State Auditor as giving gifts of public funds. He added that the FWPDA is developing a public benefit formula that is equitable and inclusive, and the board will explore this when criteria are ready for review. Cook noted that KPTZ brings advantages to the campus and larger community that merit consideration.

Lela Hilton asked how partners can be involved in the process. Robison said staff is gathering input from PTSA, Centrum, and KPTZ, and a public session will be held in June. With only a few leases up for renewal, Garay stated that it’s too early to involve partners beyond sharing specific information about a specific building. Jane Kilburn noted that involvement and transparency involve more than sharing information at the end of a process.

D. Marine Facilities Planning Workshop Robison shared that Washington State Parks (WSP) is looking at the state of its facilities, which has involved assessing the deteriorating pier structure that supports the Marine Science Center museum and aquarium. Last week WSP presented to the public preliminary options for the marine area. Option 1 involves rehabilitating the existing area, Option 2 includes removing the pier and MSC building and reconstructing a pedestrian pier, and Option 3 removes the pier and does not include rebuilding one due to environmental concerns. Taking no action also is an option. Robison stated that removing the pier will change the shoreline and lead to the loss of the beach south of the pier. Robison said that approximately 75 people attended the presentation, and options 1 and 2 had the most general support. He said that most concerns were about whether a reconstructed boat launch is necessary. Robison noted that the State has received a large grant to replace the boat launch and current plans propose a very large and visible structure. He said that WSP is working with consultants before returning to present the preferred alternative. Robison noted that designing and permitting pier projects is a long

Page 19 of 67 and complicated process, and WSP is at the beginning of the process. Meanwhile, the Marine Science Center is examining their building options as all alternatives require them to seek additional space, he said.

Umbreit asked if the FWPDA has, or should have, a position on the alternatives. Robison said he will be meeting with WSP staff to learn more and will bring a staff recommendation to the board. Kilburn advised that the FWPDA align with the Marine Science Center, which is a partner-tenant.

E. Directors Staff Retreat Robison reported that FWPDA staff directors had a two-day retreat at the Maritime Center in mid- April. The retreat included reviewing the strategic priorities and updating timelines for achieving the related goals. The process helped support directors who weren’t on staff during the budget process. Robison noted that attention was paid to considering the appropriate pace for goals amid other operational needs. The in-depth process also helped facilitate interdepartmental coordination. He said that directors will continue reviewing priorities and timelines monthly at directors meetings and are paying more attention to how strategic decisions are communicated to their teams.

F. Marketing and Sales Report Moody provided an overview of sales for groups, partners, and leisure activities (see report in board packet on website). Cody Griffith, Director of Sales and Marketing, noted that her team is strategically placing guests as a significant number of accommodations are offline due to the sewer project. The FWPDA recently became a member of the Washington Festival and Events Association (WFEA). In early April, Senior Events and Marketing Manager Natalie Maitland attended a WFEA conference in Bellevue for training in planning and executing events. Highlights included sessions on maximizing revenue, measuring economic impact, beverage offerings and sales, and updates to state laws for festivals and events. Griffith also shared that Fort accommodations are already sold out for Saturday night of the THING event weekend in August.

G. 4th of July Robison shared that the FWPDA is working with Thunderbull Productions to host the 4th of July celebration. He reported that the celebration won’t involve fireworks this year due to a lack of funding from the City, and Thunderbull is exploring local talent for the main stage and considering organizing a laser show or a fire show. Corporate sponsors are being pursued.

H. STG Event Seattle Theater Group (STG) is organizing THING, a two-day event that will include music, comedy, film, dance, and visual arts. It will take place Saturday, August 24 and Sunday, August 25 at Fort Worden. Robison reported that the FWPDA has received largely positive local and regional responses to the event, and STG is very aware of concerns about crowds, noise, parking, and traffic as they consider event logistics. Robison noted that STG is hiring local support as much as possible, and this includes having Thunderbull Productions manage parking and camping. Robison said that STG has a $1.2 million budget for this event.

I. Neighborhood Advisory Committee Board and staff discussed how the newly formed Neighborhood Advisory Committee will be involved in event planning. Robison stated that before each event season the FWPDA will present event plans to the committee and gather concerns and advice on how to mitigate traffic, parking, and noise. The committee also will debrief with staff at the end of event seasons to inform planning for the following year, he said. Garay noted that the committee is an advisory body and the pre-season meeting will help the FWPDA spot issues in advance and problem-solve. The FWPDA will still work

Page 20 of 67 with the City on traffic control efforts to mitigate year-round traffic impact, she added. Hilton expressed concern that the process will involve more information than engagement. Garay noted that in this first year, the deeper engagement will be after this season’s events due to the timing of the committee’s formation; subsequent years will involve more advance engagement. The advisory committee’s first meeting is scheduled for May 13. Committee members commit to a three-year role to help provide consistent analysis and engagement.

XIII. Public Comment

Arthur Rochester expressed concern about traffic and crowd control at Fort Worden events. Last year’s Modest Mouse concert led to issues with traffic congestion, parking along neighborhood streets, and post- event crowd control, he said.

David Thielk asked everyone to remember that the taxpayer is a partner in efforts at Fort Worden. He stated that the FWPDA and City are obligated to deal with transportation issues to reduce carbon emissions. Tourism in Jefferson County contributes to above-average miles driven per capita, he said. Thielk questioned why business is conducted as usual “knowing we are destroying the planet for our children and grandchildren.” Thielk expressed concern about impacts from THING. He recommended that the FWPDA at the least run shuttle transportation. Referencing climate activist Greta Thunberg, Thielk stated that the FWPDA needs to take carbon footprint concerns into account when considering and planning events.

David Goldman reminded the board of an economic impact study for WSP that demonstrated how much water recreation opportunities contribute to revenue generation. He asked board members to keep this in mind as they consider options for the Marine Facilities Project.

XIV. Next Meetings

❖ Executive Committee Meeting, May 14, 2019, 9 a.m. ❖ Board of Directors Meeting, May 22, 2019, 9 a.m.

XV. Adjourn: 11:46 a.m.

Board Packets and PowerPoint Presentations are available on our website at: www.fortworden.org under public documents>agendas & documents>public meetings>PDA Board Meeting 4.24.19

Page 21 of 67 To: Fort Worden PDA Board of Directors

From: Diane Moody

Date: 5/22/19

RE: FWPDA April 2019 Revenue and Expense and Balance Sheet Reports

For the month of April total revenue is 95% to a budget of $414,553. Compared to last year, revenue for the month is 9% higher.

Accommodations are 102% to budget for the month. Compared to last year, accommodations revenue is 27% higher, despite two group cancellations.

April Actual Budget % Group $35,329 $28,071 126% Partner $30,255 $44,200 68% Leisure $90,419 $86,640 104% Non Refundable $36,045 $30,000 120% Total $192,048 $188,911 102%

Occupancy was slightly lower than in 2018, but ADR is higher.

The Year to date (YTD) accommodations revenues continues to improve each month. This month it is up to 88% to budget over last month at 82%.

YTD Actual Budget % Group $112,822 $135,993 83% Partner $100,932 $112,777 89% Leisure $191,792 $216,095 89% Non Refundable $119,404 $130,000 92% Total $524,950 $594,865 88%

Page 22 of 67 Food sales for the month are 87% to budget at $167,196. Compared to 2018, the month is 7% less and YTD remains about the same.

April Actual Budget % Reveille $34,451 $37,800 91% Guardhouse $43,635 $44,700 98% Catering/Mess Hall $79,253 $84,696 94% Total $157,339 $167,196 94%

YTD Actual Budget % Reveille $137,670 $142,974 96% Guardhouse $150,241 $138,301 109% Catering/Mess Hall $207,937 $239,646 87% Total $495,848 $520,921 95%

In other revenues the main activities during the month that contributed to the $57,664 revenue are meeting rooms and related services ($12,846), partner leases ($8,600), and Discover Pass sales ($12,980).

On the expense side personnel costs for the month includes three pay periods and were 11% over budget at $344,722. The remainder of ordinary expenses was 77% to budget at $128,045 to a budget of $166,028.

The net result at month-end is 2% over budget at -134,114 and 90% of budget at -933,843 for YTD.

Page 23 of 67 Apr 18 Apr 19 Budget $ Over Budget % of Budget

Ordinary Revenue/Expense Revenue 4000 Accomodations 151,688.99 192,047.75 188,911.00 3,136.75 102% 4400 Food Sales Revenue 157,339.24 145,752.90 167,196.00 (21,443.10) 87% 4600 Other Revenues 54,579.54 57,644.44 58,446.00 (801.56) 99% Total Revenue 363,607.77 395,445.09 414,553.00 (19,107.91) 95% Cost of Goods Sold Cost of Goods 5000 Food Service Cost of Goods 46,693.49 40,464.81 57,904.80 17,439.99 70% 5008 Merchandise for Resale 1,540.66 1,081.60 1,700.00 1,688.00 64% 5010 Discover Passes 16,370.00 12,980.00 16,370.00 3,390.00 79% Total Cost of Goods 64,604.15 54,526.41 75,974.80 21,448.39 72% Total COGS 64,604.15 54,526.41 75,974.80 21,448.39 72% Gross Revenue 299,003.62 340,918.68 338,578.20 2,340.48 101% Expense 6010 Personnel Costs 249,202.87 344,722.20 309,898.00 (34,824.20) 111% 7000 Repairs & Maintenance 11,884.10 10,742.12 22,111.00 11,368.88 49% 7100 Utilities 35,723.81 47,447.49 44,228.00 (3,219.49) 107% 8000 Contracts 13,360.81 15,704.95 20,664.00 4,959.05 76% 8500 Operating Expense 59,029.08 54,150.39 79,025.00 24,874.61 69% Total Expense 369,200.67 472,767.15 475,926.00 3,158.85 99% Net Ordinary Revenue -70,197.05 -131,848.47 -137,347.80 5,499.33 96% Other Expense/Capital Purchase & Leasehold Improveme 8,768.50 2,266.21 417.06 9,185.56 Net Revenue -79,382.61 -134,114.68 -137,347.80 3,233.12 102%

Page 24 of 67 Jan - Apr 18 Jan - Apr 19 YTD Budget $ Over Budget % of Budget Annual Budget

Ordinary Revenue/Expense Revenue 4000 Accomodations 585,627.59 524,949.56 594,864.75 (69,915.19) 88% 3,288,483.00 4400 Food Sales Revenue 493,314.59 495,847.95 505,121.00 (9,273.05) 98% 2,722,544.00 4600 Other Revenues 197,847.16 173,761.96 191,276.35 (17,514.39) 91% 1,021,800.00 Total Revenue 1,276,789.34 1,194,559.47 1,291,262.10 (96,702.63) 93% 7,032,827.00 Cost of Goods Sold Cost of Goods 5000 Food Service Cost of Goods 170,854.60 153,910.32 180,512.80 26,602.48 85% 919,365.00 5008 Merchandise for Resale 5,183.63 3,083.63 5,284.85 2,201.22 58% 32,585.00 5010 Discover Passes 46,730.00 39,490.00 46,730.00 7,240.00 85% 180,310.00 Total Cost of Goods 222,768.23 196,483.95 232,527.65 36,043.70 84% 1,132,260.00 Total COGS 222,768.23 196,483.95 232,527.65 36,043.70 84% 1,132,260.00 Gross Revenue 1,054,021.11 998,075.52 1,058,734.45 (60,658.93) 94% 5,900,567.00 Expense 6010 Personnel Costs 968,544.08 1,413,168.63 1,303,993.00 (109,175.63) 108% 3,878,268.00 7000 Repairs & Maintenance 29,375.52 65,209.61 63,554.00 (1,655.61) 103% 230,813.00 7100 Utilities 188,214.81 197,421.51 164,954.50 (32,467.01) 120% 505,497.00 8000 Contracts 52,730.61 58,838.39 110,486.50 51,648.11 53% 308,738.00 8500 Operating Expense 226,292.72 194,441.34 255,032.00 60,590.66 76% 864,679.00 Total Expense 1,465,157.74 1,929,079.48 1,898,020.00 (31,059.48) 102% 5,787,995.00 Net Ordinary Revenue -411,136.63 -931,003.96 -839,285.55 91,718.41 90% Other Expense/Capital Purchase & Leasehold Improveme 2,838.62 $ 25,000.00

Net Revenue -411,136.63 -933,842.58 -839,285.55 (94,557.03) 90% 87,572.00

Page 25 of 67 Apr 30, 19

ASSETS Current Assets Checking/Savings 1000 Operating Accounts 174,855.05 1003 Advance Deposit Account 333,046.63 1010 Capital Fund Accounts 1,368,753.22 Total Checking/Savings 1,876,654.90 Accounts Receivable 1100 Hospitality Services 156,927.85 1120 Partner Tenant 58,127.34 Total Accounts Receivable 215,055.19 Other Current Assets 1050 Food Service Inventories 157,107.53 1060 Merchandise for Resale 40,348.25 1065 Discover Passes 31,860.50 1200 Prepaid Expenses 74,001.09 Undeposited Funds 7,282.52 Total Other Current Assets 310,599.89 Total Current Assets 2,402,309.98 Fixed Assets 1300 Fixed Assets 257,065.72 Total Fixed Assets 257,065.72 TOTAL ASSETS 2,659,375.70 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Operating 72,866.18 2003 Capital Fund A/P 154,844.55 Total Accounts Payable 227,710.73 Credit Cards & House Accounts 77,540.52 Other Current Liabilities 2100 Current Liabilities 2101 Deferred Revenue 73,477.91 2103 Food Vendor Clean Deposit 200.00 2104 Payroll Liabilities 130,062.55 2110 Accrued Business/Sales Tax 43,246.95 Total 2100 Current Liabilities 246,987.41 2120 Due To Hospitality Service 400,000.00 2121 Due To CI Fund -400,000.00 2200 Advance Deposits 951,559.27 2400 Notes Payables 167,000.00 2600 Pass Thru-Oth 3,345.20 Total Other Current Liabilities 1,368,891.88 Total Current Liabilities 1,674,143.13

Page 26 of 67 Apr 30, 19

Long Term Liabilities 2700 Kitsap Bond 1,000,000.00 Total Long Term Liabilities 1,000,000.00 Total Liabilities 2,674,143.13 Equity 3000 Net Assets -20,117.38 Opening Balance Equity 26,464.33 Unrestricted Net Assets 864,606.91 Net Revenue -885,721.29 Total Equity -14,767.43 TOTAL LIABILITIES & EQUITY 2,659,375.70

Page 27 of 67 Current 1 - 30 31 - 60 61 - 90 > 90 TOTAL

P-Centrum 6,537.74 4,144.15 14,128.32 0.00 1,000.00 25,810.21 P-Copper Canyon 418.18 63.97 0.00 0.00 0.00 482.15 P-Friends_of_Fort Worden 0.00 192.00 109.00 0.00 0.00 301.00 P-Goddard College 0.00 491.60 408.60 0.00 0.00 900.20 P-Gray Wolf 0.00 1,001.83 33.33 0.00 0.00 1,035.16 P-PeninsulaCollege 1,244.77 0.00 0.00 0.00 0.00 1,244.77 P-WA State Parks Lease 4,274.73 0.00 6,221.61 0.00 0.00 10,496.34 PDA Facilities Projects 1027 Historic Window Preservation 305 0.00 17,857.51 0.00 0.00 0.00 17,857.51 Total PDA Facilities Projects 0.00 17,857.51 0.00 0.00 0.00 17,857.51 TOTAL 12,475.42 23,751.06 20,900.86 0.00 1,000.00 58,127.34

Page 28 of 67 Account Aging Fort Worden Housing As of 4/30/2019

Name Up to 30 31 - 60 61 - 90 91 - 120 Balance

Centrum Choro 11,387.25 - - - 11,387.25 Centrum Explorations - 30,354.83 - - 30,354.83 Centrum Spring OSPI Native - 12,865.51 - - 12,865.51 American Voices Centrum Spring Yawp 2,386.70 - - - 2,386.70 Estep-Beavis Wedding 2019 145.01 - - - 145.01 Goddard Artists March - 25,599.01 - - 25,599.01 Goddard Writers February - 31,689.14 - 31,689.14 Independent Bible Church 2019 1,246.43 - - - 1,246.43 Jefferson Healthcare - 65.40 - - 65.40 Private Reunion 2019 (419.65) - - - (419.65) NW Discovery Lab - - - 2,152.75 2,152.75 Rotary Auction 2019 11,230.21 - - - 11,230.21 WA National Guard Youth Council - - 5,994.00 5,994.00 Quarter 2 Meeting WASP Inservice April 22,231.26 - - - 22,231.26

Groups 48,207.21 100,573.89 5,994.00 2,152.75 156,927.85

Page 29 of 67 RESOLUTION NO. 19-10

A RESOLUTION OF THE FORT WORDEN LIFELONG LEARNING CENTER PUBLIC DEVELOPMENT AUTHORITY (FWPDA), AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A CONSTRUCTION CONTRACT WITH CLARK CONSTRUCTION, THE APPROVED LOWEST RESPONSIVE, RESPONSIBLE BIDDER, FOR THE MAKERS SQUARE PROJECT, AND TO SIGN ALL NECESSARY DOCUMENTS FOR THE PROJECT.

WHEREAS, the FWPDA previously authorized the preparation of plans and directed the Executive Director to proceed to bid the Makers Square Project for the rehabilitation of Buildings 305, 308 and 324, and related work, including tenant improvements to be funded by KPTZ.

WHEREAS, the lowest responsible, responsive bid was from Clark Construction for $9,691,372.

WHEREAS, the Board of Directors, on recommendation of the Executive Director, has determined that it in the best interest of the Project to accept the lowest responsible bid;

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors as follows:

1. The Executive Director is authorized to award a construction contract to Clark Construction, Inc. as the lowest responsive responsible bidder in the amount of $9,691,372.

2. The Executive Director or designee is authorized to sign all necessary documents and contracts for construction of the project.

ADOPTED by the Board of Directors of the Fort Worden Lifelong Learning Center Public Development Authority at a properly noticed regular meeting of the Board at which a quorum was present, held on the 22nd day of May, 2019.

______Norm Tonina, Chairperson

ATTEST:

______Jane Kilburn, Chairperson

Page 30 of 67 Base Bid - Building 305 and Jan 2019 Cumulative bid Cumulative bid Bidder #1 Bidder #2 adjacent site work Estimate amount amount Building 30S $4,321,156.00 Site work, utilities & electrical $122,432.00 LEED Commissioning $80,000.00 Market Conditions $271,415.00 Sub-total $4,795,003.00 $5,973,009.00 $5,895,000.00 WSST@9% $431,550.27 $537,570.81 $530,550.00 Total $5,226,553.27 $6,510,579.81 $6,425,550.00

Alternate#1 - Building 308 & 324 and underground utilities Building 308 $786,790.00 Building 324 $917,359.00 Site utilities $978,229.00 Market Conditions $160,943.00 Sub-total $2,843,321.00 $2,327,005.00 $1,975,000.00 WSST@9% $255,898.89 $209,430.45 $177,750.00 Total $3,099,219.89 $2,536,435.45 $9,047,015.26 $2,152,750.00 $8,578,300.00

Alternate #2 - KPTZ infill Tenant improvements $584,885.00 Market Conditions $35,071.00 Sub-total $619,956.00 $702,453.00 $1,021,167.00 WSST@9% $55,796.04 $63,220.77 $91,905.03 Total $675,752.04 $765,673.77 $9,812,689.03 $1,113,072.03 $9,691,372.03

Alternate #3 - Makers Square Site Improvements Site improvements $1,057,181.00 Market Conditions 431.00 $63, Sub-total $1,120,612.00 $1,273,496.00 $1,670,454.00 WSST@9% $100,855.08 $114,614.64 $150,340.86 Total $1,221,467.08 $1,388,110.64 $1,820,794.86

GRAND TOTAL $ 10,222,992.28 11,200,799.67 11,512,166.89 Shading indicates the apparent low bidder base on cumulative total of Alternate Bid values

Page 31 of 67 Architect and Engineer Fees-Ct1 $ 462,151 contract amount leftin CA Testing and Inspections $ 25,000 Project Administration $ 165,105 Owner's Management Reserve $ 250,000 Commissioning $ 20,000 Financing and Title Fees $ 250,000 Legal Fees $ 13,350 Fundraising, Outreach, Staffing $ 200,000 Subtotal $ 1,385,606

Classroom, Studios, Exhibits $ 200,000 IT, phone systems, Wi-Fi $ - included within bids i---,:.....:...____,l-'-______:.____;___ ----1 Subtotal $ 200,000

\ - 2>51 I 3ov s�:)1 0or � ir() :) 90'1 \ l 't'

Page 32 of 67 SOURCE OF FUNDS SECURED FUNDS REIMBURSABLE FUNDS PENDING NOTES / Confidence Level

Fort Worden PDA Capital Account - Makers Square $ 2,523,129

Fort Worden Foundation Capital Account - Makers Square $ 1,200,000

Washington State Building for the Arts (2017-19) $ 1,270,000 Heritage Capital Projects (2017-19) $ 727,500 Building for the Arts (2019-21) $ 712,000 Heritage Capital Projects (2019-21) $ 560,000 WA State Parks (Roofs Restoration) $ 745,000 Local & Community Projects List $ 675,000

US Federal Government Historic Tax Credits $ 1,700,000 Assumes all 3 bldgs constructed NPS - Save America's Treasures $ 500,000 Fall 2019 Notification Private Foundation $ 500,000 Fall 2019 Notification

SUB TOTALS $ 3,723,129 $ 6,389,500 $ 1,000,000

$ 10,112,629 Total $ 11,112,629

MAKERS SQUARE EXPENSES TO DATE $ 1,964,000 Signal Architectural Services $ 1,342,924 Other Expenses $ 621,076 as of 3/31/2019

Page 33 of 67 Page 34 of 67 Page 35 of 67 Page 36 of 67 Page 37 of 67 Page 38 of 67

FORT WORDEN PUBLIC DEVELOPMENT AUTHORITY CONTRACT

THIS AGREEMENT made and entered into this __ day of _____, 20___, by and between the Fort Worden Public Development Authority (“Owner” or “FWPDA”), and ______(“Contractor”):

WHEREAS, pursuant to the invitation of the Owner for bids, the Contractor did, in accordance therewith, file with the Owner a proposal containing an offer which was invited by said notice, and

WHEREAS, the Owner has heretofore determined that said offer was the lowest responsive and responsible bid submitted;

NOW, THEREFORE, in consideration of the terms and conditions contained herein, the parties hereto covenant and agree as follows:

1. Contract Scope of Work; Contract Documents. The Contractor shall in a workmanlike manner do all work and furnish all tools, materials, and equipment for the

Makers Square – Building 305, 308 & 324 in accordance with and as described in the following Contract Documents (incorporated by reference in this Contract):

1. Contract; 2. Addenda; 3. Bid Proposal; 4. Special Provisions;

Page 39 of 67 5. Fort Worden Public Development Authority Project Drawings and Project Manual In the event of a conflict or discrepancy among or in the Contract Documents, interpretation shall be governed in the priority listed and set forth above.

The Contractor shall provide and bear the expense of all equipment, work and labor of any sort whatsoever they may require for the transfer of materials and for constructing and completing the work provided for in the specifications to be furnished by the Fort Worden Public Development Authority.

2. Contract Amount; Compensation. The Fort Worden Public Development Authority hereby promises and agrees with the Contractor to employ, and does employ the Contractor to provide materials and to do and cause to be done the above described work and to complete and finish the same according to the Scope of Work and the terms and conditions herein contained and hereby contracts to pay for the same, the total sum of ______including tax. Payment shall be as provided in the Instructions for Bidders unless otherwise provided. Payment shall be made monthly upon submittal of a pay request for work performed to date as determined by the FWPDA. Failure to perform any of the obligations under the contract by Contractor may be decreed by the FWPDA to be adequate reason for withholding any payments until compliance is achieved, including withholding amounts from any payment based on substantial completion to cover the FWPDA’s cost to complete any punch list items.

3. Time for Completion. The Contractor shall physically complete the project Within 365 calendar days

4. Insurance and Indemnity Requirements. Contractor shall take out and maintain insurance as set forth in Exhibit G of the bid package, which is incorporated herein by reference.

5. Correction of Work. If within two years after the date for Substantial Completion, any of the work is found not to be in accordance with the requirements of the Contract Documents, the Contractor shall correct it promptly after written notice to do so. If the Contractor fails to correct nonconforming work within a reasonable time after notice, FWPDA may, without prejudice to other remedies it may have, correct such deficiencies, and the Contractor shall pay the cost to the FWPDA, plus 10% FWPDA administrative overhead fee.

6. Attorney Fees. If enforcement of this Contract requires either party to engage the services of an attorney or consultant, the prevailing party shall be entitled to recover reasonable legal costs, including attorney fees and expert fees, in connection with such enforcement, with or without suit.

Page 40 of 67 IN THE WITNESS WHEREOF the parties hereto have caused this agreement to be executed this ______day of ______, 2019.

Fort Worden Public Development Authority Contractor

By: ______By: ______David Robison, Evecutive Director Name: ______

Title: ______

Approved as to form:

______

John Watts, Acting FWPDA Attorney

END OF TEXT

Page 41 of 67 RESOLUTION NO. 19-11

A RESOLUTION OF THE BOARD OF DIRECTORS OF FORT WORDEN LIFELONG LEARNING CENTER PUBLIC DEVELOPMENT AUTHORITY (FWPDA) AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A SERVICE AGREEMENT NOT TO EXCEED $25,000 WITH FLYING CROW TO REFRESH FWPDA'S WEBSITE.

RECITALS

Whereas, the administrative authority allows the executive director to obtain professional and consultant services in the conduct of normal FWPDA operations not to exceed $10,000 without board approval;

Whereas, Flying Crow has been managing and updating FWPDA's website since it was launched;

Whereas, the FWPDA's website is in need of technical updates in order for the site to remain functional and active on the www and web pages need to be refreshed with revised content and new photos to improve its position on the www.

BE IT RESOLVED that the Board of Directors confirm and approves that the Executive Director may enter into an agreement with Flying Crow to provide web design services as described in the attached scope of work, not to exceed $25,000.

ADOPTED by a majority of the Board of Directors at its regular meeting on May 22, 2019.

By: ______Norm Tonina, Chairperson

ATTEST:

______Jane Kilburn, Secretary

Page 42 of 67 Fort Worden Website Refresh Scope & Budget 2019

Move Website to WordPress Platform $10,875.00 Refresh Existing Web Pages Content and Graphics $10,375.00 Add Employee Portal $250.00 Add Pages n/a Launch $500.00

Total Fees $22,000.00 Hosting Fees $600.00 annually

*Hosting fee includes SSL encryption, server maintenance, backups and security updates.

Page 43 of 67 From: Rowe, Owen (PARKS) [mailto:[email protected]] Sent: Friday, May 3, 2019 2:27 PM To: Rowe, Owen (PARKS) Subject: State Parks 2019 Legislative Wrap-Up

Dear State Parks’ Stakeholders,

I wanted to take a few moments this Friday afternoon to update everyone on the outcomes from the 2019 Legislative Session. Thank you very much for your interest and support.

State Parks’ Legislative Session Wrap-Up

The legislature adjourned Sine Die last Sunday finishing their work within minutes of midnight. It’s been several biennia since budgets have been completed within the 105-day regular session, and I’m pleased to report that the final legislative operating and capital budgets are quite favorable for State Parks. Competition for general tax support was as high as ever this session, and while State Parks received significantly fewer resources than the Commission’s request and the Governor’s proposal, the legislature did provide the park system a stable operating budget for the 2019-21 biennium. In addition, the capital budget provides significant resources for priority construction projects that will benefit park users around the state.

Operating budget highlights:

The $10 million in general tax support that has been provided as one-time over the past four biennia was finally made ongoing. This funding provides some certainty in ongoing operations and will allow us to hire current levels of seasonal park staff to meet visitor needs during peak season. This is a huge step in the right direction and should allow the park system to continue making progress in meeting the needs of a growing population in future budgets.

Also of note, State Parks was provided $2 million to replace outdated equipment, $1.5 million to hire additional maintenance and construction staff, and $300,000 for customer service at the parks.

The No Child Left Inside Program was funded at $1.5 million for capacity grants to organizations that introduce kids to outdoor recreation opportunities across the state.

Finally, our Boating Safety Program was provided $150,000 to update boater educational materials and provide marine law enforcement training on Southern Resident Killer Whale protection. This funding supports Senator Lovelett’s SSB 5918 (Providing whale watching guidelines in the Boating Safety Education Program).

Capital budget highlights:

The 2019-21 capital budget is significant, at more than $100 million; including: • New projects at $50.9 million o New project highlights ▪ Nisqually State Park (Phase I)- New full-service park. First major new park since Cama Beach in 2008

Page 44 of 67 ▪ Willapa Hills Trail- Pedestrian overpass over State Route 6 ▪ Major road improvements at Steptoe Butte ▪ $31 million Capital Preservation Pool (see attached “State Parks 2019-21 Capital Budget Final Comm Vers” for list of eligible projects) • Re-appropriations on specific projects at $31.8 million • Dedicated account spending authority at $9.7 million • $11.2 million in WWRP grants in the State Parks category (based on total funding level of $85 million see attached “2019-21 RCO WWRP- Agency vs Conference” for details) This legislature piloted a new capital program in State Parks by providing a Capital Preservation Pool of $31 million that authorizes spending on a list of projects. The “pool” concept gives us flexibility so that we can economize as well as address unexpected cost over-runs on individual projects. This approach will allow us to move funding to the highest-priority, shovel-ready projects. State Parks is required to report to the Governor and legislature the list of projects we plan to fund, their funding levels, and project schedules, by January 2020.

I also want to thank the Department of Archeology and Historic Preservation, The Department of Natural Resources, and the Washington Trust for Historic Preservation, the Palouse to Cascades Trail Coalition, the Governor’s Office, state legislators, and many more for your support of the Beverly Bridge rehabilitation. This project will provide a safe crossing over the Columbia River south of Vantage for Palouse to Cascades Trail users. Please take a few moments to view a short video from the Washington Trust for Historic Preservation on this amazing project. Link provided below. https://youtu.be/PdVcsMVKiJ8

For additional details on the capital budget projects and final WWRP list please see attachments.

Finally, the Transportation Budget provided an additional $200,000, bringing our funding level to almost $1.2 million per biennia to maintain the over 440 plus miles of road lanes for which we are responsible.

Significant bills that passed the legislature:

SHB 1436 (Concerning snow bikes)- by Representative Mosbrucker. This legislation allows motorcycles to be concurrently registered as a motorcycle and as a snow bike. Snow bikes are motorcycles that are converted to snow machines by adding a ski to the front forks and a revolving track to the rear transmission. These machines are growing in popularity and are using groomed winter recreation trails on public lands. This legislation requires snow bikes to register as snowmobiles when using Sno-Parks so that they contribute to the Winter Recreation Program’s budget to maintain groomed trails on public lands throughout the state. (Awaiting Governor’s signature)

HB 1449 (State Public Lands Day)- by Representative Peterson. This legislation recognizes the fourth Saturday of September as “Public Lands Day”. This day is already nationally recognized, but it’s great to have legislative interest in state recognition of the importance of our public lands. Over the past several years Director Hoch has identified this day as one of the twelve “free days” at State Parks and I expect that tradition will continue. (Signed into law by the Governor)

SHB 1953 (Reducing the amount of permits required for recreation at a Sno-Park)- by Representative Corry. Under current law, Sno-Park users that purchase a daily Sno-Park permit are also required to

Page 45 of 67 display a Discover Pass. The need for two passes is confusing and causes frustration for Sno-Park users. This bill clarifies that a valid daily or seasonal Sno-Park Permit is all that is needed to recreate at a Sno-Park. (Signed into law by the Governor)

SSB 5918 (Providing whale watching guidelines in the boating safety education program)- by Senator Lovelett. This legislation directs the State Parks Boating Safety Program to develop educational materials about whale watching guidelines and voluntary and regulatory measures that boaters should follow to protect the Southern Resident Killer Whales. The Boating Safety Program plans on adding questions to the state’s mandatory boater education curriculum, developing printed materials for recreational boaters, and expanding training for marine law enforcement divisions on state laws and federal regulations related to whale watching. (Awaiting the Governor’s signature) ======

In closing I want to provide a special thanks to all of you and our amazing Friends’ Groups for your support during legislative session. State Parks can’t be successful without you!!

Yours in service to our truly remarkable State Park system.

Sincerely,

Owen

Owen Rowe, Policy and Governmental Affairs Director Washington State Parks and Recreation Commission PO Box 42650 ~ 1111 Israel Road SW Olympia, WA 98504-2650 Office: (360) 902-8504 Mobile: (360) 701-5326 http://parks.state.wa.us/

Email communications with state employees are public records and may be subject to disclosure, pursuant to Ch. 42.56 RCW.

Page 46 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget Request - RCO Grants - New Projects WA State Recreation and Conservation Grants - Final April 27, 2019

Grant Amount Final Priority State Parks Projects Requested Budget

1 A Inholdings and Adjacent Properties 1,000,000 1,000,000 2 A Moran State Park Wilcox Property 1,226,800 1,227,000 3 D Dosewallips River Campsite Relocation 1,513,892 1,514,000 4 D Palouse to Cascades Connection Malden and Rosalia 1,741,699 1,742,000 5 D Kopachuck Beach Area Improvements 1,236,000 1,236,000 6 D Palouse to Cascade Tekoa Trestle Deck and Rails* 1,633,119 1,014,000 7 D Willapa Hills Trail Develop 6 Mi Raymond to Menlo 1,994,000 Alternate 8 D North Head Lighthouse Access Improvements 429,440 Alternate 9 A Spring Bay Property Obstruction Pass State Park 1,899,475 1,899,000 10 A Mount Spokane Day Mountain Inholding 698,705 699,000 11 A Flaming Geyser Nelson Property* 914,000 681,000 12 A Green River Gorge Butt Property 873,000 Alternate 13 A Miller Peninsula Jones Trust Acquisition 1,041,898 Alternate 14 A Youngren Property Moran State Park 474,000 Alternate 15 D Lake Wenatchee Pedestrian Bridge 3,092,000 Alternate 16 D Haley Property Initial Park Development 1,517,055 Alternate 17 A Willapa Hills Trail Marwood Farms 744,102 Alternate Total 22,029,185 11,012,000

Amount Final Other WWRP Projects Requested Budget State Lands Restoration and Enhancement R Ragged Ridge Restoration 207,033 207,000 R Saint Edward State Park Restoration 294,300 Alternate D Columbia Plateau Trail Martin Road to Lamont 1,133,000 - Trails D Palouse to Cascade Ellensburg to Renslow Surfacing 1,609,680 Alternate D Willapa Hills Trails Improvements 635,120 - Total 3,879,133 207,000

WWRP Total 25,908,318 11,219,000

D = Development A= Acquisition R = Restoration * Partial funding due to overall available dollars.

Page 47 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

New Projects - Funded - Line Item Appropriated Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 22 Willapa Hills Trail - Trail Develop Safe Multi-Use Trail at SR 6 4,961,000 4,961,000 4,961,000 24 Statewide - Fish Barrier Removal (Lawsuit Related) 1,605,000 1,605,000 1,605,000 27 Schafer - Relocate Campground 4,024,000 4,024,000 4,024,000 42 Minor Works - Preservation 9,154,000 4,447,000 4,447,000 Blake Island - Lift Station Controls and Overflow Tanks 847,000 Columbia Plateau Trail - Fish Lake to Cheney Drainage and Trail Repairs 884,000 Fort Worden - Replace Upper Campground Comfort Station 652,000 Ginkgo - Interpretive Center Renovation 998,000 Ike Kinswa - South Loop and Main Loop Sewage Treatment Systems 920,000 Lake Easton - Bridge Renovation 738,000 TBD TBD Lewis and Clark Trail - Lewis and Clark Trail Comfort Station Renovate-Improve Drainage 401,000 Palouse to Cascades Trail - Kittitas Depot Historic Preservation 824,000 Seaquest - Mount St. Helens Visitor Center Interpretive Displays 994,000 Statewide - Depression Era Structures Restoration 2019-21 995,000 Statewide - Depression-Era Interpretation - 2019-21 401,000 Statewide - Forest Health Enhancement - Wildfire Risk Reduction - 2019-21 500,000 55 Statewide - Electric Vehicle Charging Stations 200,000 200,000 200,000 63 Moran - Major Park Renovation 294,000 294,000 294,000 64 Nisqually - New Full Service Park 2,994,000 2,994,000 2,994,000 NA Steamboat Rock - Build Dunes Campground (From Supplemental [$772,000]) 0 666,000 666,000 NA St. Edward Environmental Education and Research Center 0 0 750,000 Subtotal - New Projects (State Construction Account) 23,232,000 19,191,000 19,941,000

Page 48 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

New Projects - Funded - Capital Preservation Pool Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) NA State Parks Capital Presevation Pool 0 0 31,000,000 21 Fort Flagler - WW1 Historic Facilities Preservation 1,846,000 1,200,000 23 Kopachuck - Day Use Development 1,698,000 1,698,000 25 Steptoe Butte - Road Improvements Phase 2 5,207,000 5,207,000 26 Fort Worden - Replace Failing Waterlines 1,893,000 450,000 28 Fort Simcoe - Historic Officers Quarters Renovation 804,000 804,000 29 Palouse Falls - Day Use Area Renovation 1,318,000 1,318,000 30 Sun Lakes - Dry Falls - Campground Renovation 200,000 200,000 39 Birch Bay - Replace Failing Bridge 2,464,000 2,464,000 40 Lyons Ferry - Campground Reestablishment 3,213,000 3,213,000 41 Statewide - Facilities and Infrastructures Backlog Reduction - 2019-21 7,000,000 4,000,000 43 Deception Pass - Bowman Bay Pier Replacement 2,139,000 2,130,000 44 Cape Disappointment - Welcome Center and Entrance Improvements 3,529,000 3,529,000 Not Funded 46 Cape Disappointment - North Head Lighthouse Area Buildings and Grounds 2,438,000 1,400,000 47 Pearrygin Lake - Consolidated Park Access 2,406,000 2,406,000 48 Fort Casey - Lighthouse Historic Preservation 1,658,000 1,658,000 49 Fort Worden - Historic Building Roof Replacements 1,953,000 1,946,000 50 Fort Worden - Housing Areas Exterior Improvements 1,458,000 700,000 51 Statewide - Code/Regulatory Compliance 2019-21 1,201,000 1,201,000 52 Statewide - ADA Compliance 2019-21 2,000,000 2,000,000 54 Statewide - Marine Facilities Rehabilitation 995,000 995,000 59 Sun Lakes - Dry Falls - Visitors Center Renovation 643,000 643,000 61 Blake Island - Marine Facilities Improvements 325,000 325,000 Not Funded Subtotal - New Projects (State Construction Account) 46,388,000 39,487,000 31,000,000

Page 49 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

New Projects - Not Funded Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 20 Sequim Bay - Addressing Failing Retaining Wall (Funded through RCO BFP Grant) 100,000 0 0 45 Goldendale - Observatory Rooftop Access and Observation Gallery 1,612,000 0 0 53 Statewide - Event Infrastructure 249,000 00 56 Statewide - Coast Defense Interpretation 399,000 00 57 Statewide - Recreation Concession Area (RCA) Infrastructure Support 150,000 00 58 Riverside - Spokane House IC- Exhibit Renovation: Interpretive Scope: 1,092,000 0 0 60 Lake Sammamish - Sunset Beach Parking, Circulation and Esplanade 4,937,000 0 0 62 Fort Flagler - Parkwide Renovation 2,045,000 0 0 65 Federation Forest - Remodel Interpretive Center 1,590,000 0 0 66 Wallace Falls - Parking Area Expansion and Water System Improvement 534,000 0 0 67 Millersylvania - Replace Original 1940's Water System 316,000 0 0 68 Ocean City - Entrance Road Renovation 329,000 0 0 69 Manchester - Sustainable Shoreline Project 374,000 0 0 70 Ginkgo - Petrified Forest Trailside Museum Accessibility, Preservation and Interpretation 1,300,000 0 0 71 Lake Chelan - Replace Non-Compliant Comfort Station & Drainfield 1,270,000 0 0 72 Riverside - Lake Spokane Campground Upgrade 1,454,000 0 0 73 Twanoh - Major Park Renovation 319,000 00 74 Pearrygin Lake - Pearrygin Creek Channel Stabilization 166,000 00 75 Deception Pass - Bowman Bay Water System Replacement 489,000 0 0 76 Cape Disappointment - Replace Non-Compliant Comfort Stations 1,540,000 0 0 77 Larrabee - Water Distribution System Rehabilitation 409,000 0 0 78 Millersylvania - Welcome Center Relocation, Park Interpretive and Circ. Improvements 248,000 0 0 79 Flaming Geyser - Infrastructure Replacement 2,355,000 0 0 80 Fort Worden - Historic Preservation of Old Hospital Building 298 397,000 0 0 81 Mount Spokane - Road Improvements, Stage 3 Linders to Snowblaze 500,000 0 0 82 Rockport - Day Use Renovation 337,000 0 0 83 Lime Kiln Point - Amphitheater Development 1,050,000 0 0 84 Anderson Lake - Trail Development and Trailhead 496,000 0 0 Subtotal - New Projects (State Construction Account) 26,057,000 0 0

Total - New Projects (State Construction Account) 95,677,000 58,678,000 50,941,000 Page 50 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

Reappropriated Projects Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 1 Statewide - Marine Facilities Various Location Moorage Float Replacement 100,000 110,000 111,000 2 Statewide - Comfort Station Pilot Project 1,000,000 1,063,000 1,063,000 3 Penrose Point - Sewer Improvements 200,000 319,000 320,000 4 Lake Chelan - Moorage Dock Pile Replacement 1,446,000 1,596,000 1,596,000 5 Moran - Summit Learning Center - Interp. Facility 850,000 903,000 903,000 6 Lake Sammamish - Sunset Beach Picnic Area 2,500,000 2,615,000 2,615,000 - Lake Sammamish - Dock Grant Match 0 959,000 959,000 7 Dash Point - Replace Bridge (Pedestrian) 500,000 471,000 468,000 8 Cape Disappointment - North Head Buildings and Grounds Repairs and Improvements 400,000 443,000 469,000 9 Fields Spring - Replace Failed Sewage System and Non-ADA Compliant Comfort Station 500,000 1,137,000 1,123,000 10 Steamboat Rock - Build Dunes Campground 2,400,000 2,433,000 2,437,000 11 Fort Worden - Replace Failing Sewer Lines 1,500,000 1,280,000 1,493,000 12 Sun Lakes - Dry Falls - Upgrade Failing Water Supply Systems 642,300 701,000 644,000 13 Mount Spokane - Maintenance Facility Relocation from Harms Way 1,400,000 1,921,000 1,921,000 14 Goldendale - Observatory Expansion Phase 4 500,000 549,000 551,000 15 Statewide - Depression Era Structures Restoration 175,000 183,000 186,000 16 Statewide - ADA Compliance 200,000 217,000 467,000 - Minor Works – Program 0 0 105,000 Battleground Lake - ADA Dock 0 0 105,000 17 Minor Works – Health and Safety 200,000 211,000 402,000 Statewide - Code/Regulatory Compliance 200,000 211,000 380,000 18 Minor Works – Facilities and Infrastructure 1,300,000 1,421,000 1,981,000 Illahee - Replace Failing Drainfield 400,000 437,231 400,000 Blake Island - Replace Main Lift Station 0 0 250,000 Schafer - Renovate Historic Structures 200,000 218,615 200,000 Statewide - Historic Window Rehabilitation 200,000 218,615 200,000 Statewide - Provide Event Infrastructure 500,000 546,538 800,000 19 Minor Works – Program 592,300 633,000 646,000 Fort Casey - ADA Improvements Battery Worth 300,000 320,615 300,000 Pearrygin Lake - Contact Station 212,300 226,888 220,000 Statewide - Ice Age Floods Interpretive Exhibits 80,000 85,497 80,000 Page 51 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

Reappropriated Projects - Continued Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 20 Sequim Bay - Addressing Failing Retaining Wall 715,000 739,000 735,000 21 Fort Flagler - WW1 Historic Facilities Preservation 1,500,000 1,614,000 1,091,000 22 Willapa Hills Trail - Trail Develop Safe Multi-Use Trail at SR 6 100,000 25,000 25,000 23 Kopachuck - Day Use Development 3,500,000 4,291,000 5,190,000 24 Statewide - Fish Barrier Removal (Lawsuit Related) 50,000 53,000 53,000 25 Steptoe Butte - Road Improvements Phase 2 400,000 437,000 466,000 26 Fort Worden - Replace Failing Waterlines 150,000 214,000 214,000 27 Schafer - Relocate Campground 400,000 429,000 433,000 28 Fort Simcoe - Historic Officers Quarters Renovation 185,000 241,000 292,000 29 Palouse Falls - Day Use Area Renovation 175,000 202,000 220,000 30 Sun Lakes - Dry Falls - Campground Renovation 300,000 342,000 342,000 35 Fort Worden - Pier and Marine Learning Center Improve or Replace 600,000 613,000 613,000 36 Beacon Rock - Entrance Road Realignment 100,000 160,000 215,000 37 Statewide - New Park 150,000 160,000 267,000 38 Twin Harbors - Relocate Campground 150,000 161,000 267,000 53 Birch Bay - Replace Failing Bridge 0 0 100,000 - Statewide Water System Renovation 0 0 264,000 - Statewide Septic System Renovation 0 0 65,000 - Statewide Electrical System Renovation 0 0 462,000 Total - Reappropriated Projects (State Construction Account) 24,880,600 28,846,000 31,774,000

Total - All Projects (State Construction Account) 120,557,600 87,524,000 82,715,000

Page 52 of 67 Washington State Parks and Recreation Commission 2019-21 Capital Budget and 2019 Capital Supplemental Budget - Final April 27, 2019

New Grants and Spending Authority Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 31 Statewide - Clean Vessel Boating Pump-Out Grants 2,600,000 2,600,000 2,600,000 32 Statewide - Local Grant Authority 2,000,000 2,000,000 2,000,000 33 Statewide - Federal Grant Authority 750,000 750,000 750,000 Subtotal 5,350,000 5,350,000 5,350,000 34 Statewide - Parkland Acquisition 2,000,000 2,000,000 2,000,000 Total - New Grants and Spending Authority 7,350,000 7,350,000 7,350,000

Reappropriated Grants and Spending Authority Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 31 Statewide - Clean Vessel Boating Pump-Out Grants 1,000,000 1,000,000 1,000,000 32 Statewide - Local Grant Authority 1,000,000 1,000,000 1,000,000 33 Statewide - Federal Grant Authority 350,000 350,000 350,000 Total - Reappropriated Grants and Spending Authority 2,350,000 2,350,000 2,350,000

Total All New Appropriations 103,027,000 66,028,000 58,291,000 Total All Reappropriations 27,230,600 31,196,000 34,124,000

Total - All New Appropriations and Reappropriations 130,257,600 97,224,000 92,415,000

Page 53 of 67 Other New Agency Projects RCO WWRP State Parks Category Grants Amount Governor Final Budget Project Title Requested Proposal (SHB 1102) Inholdings and Adjacent Properties A 1,000,000 1,000,000 1,000,000 Moran State Park Wilcox Property A 1,226,800 1,226,800 1,227,000 Dosewallips River Campsite Relocation D 1,513,892 1,513,892 1,514,000 Palouse to Cascades Connection Malden and Rosalia D 1,741,699 1,741,699 1,742,000 Kopachuck Beach Area Improvements D 1,236,000 1,236,000 1,236,000 Palouse to Cascade Tekoa Trestle Deck and Rails D 1,633,119 1,633,119 1,014,000 Willapa Hills Trail Develop 6 Mi Raymond to Menlo D 1,994,000 1,324,185 Alternate North Head Lighthouse Access Improvements D 429,440 Alternate Alternate Spring Bay Property Obstruction Pass State Park A 1,899,475 1,899,475 1,899,000 Mount Spokane Day Mountain Inholding A 698,705 698,705 699,000 Flaming Geyser Nelson Property A 914,000 914,000 681,000 Green River Gorge Butt Property A 873,000 873,000 Alternate Miller Peninsula Jones Trust Acquisition A 1,041,898 836,915 Alternate Youngren Property Moran State Park A 474,000 Alternate Alternate Lake Wenatchee Pedestrian Bridge D 3,092,000 Alternate Alternate Haley Property Initial Park Development D 1,517,055 Alternate Alternate Willapa Hills Trail Marwood Farms A 744,102 Alternate Alternate Total - RCO WWRP State Parks Projects 22,029,185 14,897,790 11,012,000

Other WWRP Projects State Lands Restoration and Enhancement Category Grants Ragged Ridge Restoration R 207,033 207,033 207,033 Saint Edward State Park Restoration R 294,300 Alternate Alternate Columbia Plateau Trail Martin Road to Lamont D 1,133,000 Alternate0 Total - State Lands Restoration and Enhancement Category Grants 1,634,333 207,033 207,033

Trails Category Grants Palouse to Cascade Ellensburg to Renslow Surfacing D 1,609,680 1,348,135 Alternate Willapa Hills Trails Improvements D 635,120 Alternate 0 Total - Trails Category Grants 2,244,800 1,348,135 0

Total - Other WWRP Projects 3,879,133 1,762,201 414,066

Total - WWRP Projects 25,908,318 16,659,991 11,426,066 Legend - A = Acquisition, D = Development, R = Restoration

Page 54 of 67 Other New Projects and Grants Department of Archaeology and Historic Preservation (DAHP) Capital Project Title Amount Rehabilitation of Beverly Bridge 5,575,000 General Fund 429,000 057 State Building Construction Account 5,146,000

New Commerce Grants Project Title Amount 2020 Local and Community Projects Lake Sylvia State Park Pavilion (Montesano) $250,000 Mt. Spokane State Park Ski Lift (Mead) $750,000

Palouse to Cascades Trail Facilitation $150,000

2019-21 Building for the Arts Grant Program Rehabilitating Fort Worden's Historical Warehouse $712,000

2019 Supplemental Agency Agency Governor Final Budget Priority Project Title Original Proposal (SHB 1102) 1 Steamboat Rock - Build Dunes Campground (Funded on New Projects list at $666,000) 772,000 0 0 2 Nisqually New Full Service Park - Predesign 150,000 150,000 0 Total - Supplemental Projects (State Construction Account) 922,000 150,000 0

Page 55 of 67 Section of CB Ranked number CB Project Name Request Gov CB House CB Senate CB Final CB

Local and Communty projects n/a Infrastructure for economic development 750k 0 0 $675k $675

Building for the Arts 13/14 FW Foundation Makers Square 712k 712k 712k $712k $712 Heritage Grant 34/36 Sage FW PDA Arts and Education Center 560k 0 0 $560k $560k

State Parks list 11 Replace Failing Sewer Lines - reapprop 1.5 million 1.28 million 1.49 million 1.49 million 1.49 million (reapprop) Statewide - ADA Compliance 217k reapprop, 2 million new 217k reapprop, 1 million new 467 reapprop 467 reapprop 20 Historic Window Rehabilitation - reapprop 200k 218k (minor works) 0 0 0

1.893 million new, 150k reapprop 450k ,214k Reapprop 450k, 214k reapprop project included in the project included in the 31 Replace Failing Waterlines maintenance funding list maintenance funding list 45 Replace Upper Campground Comfort Station 652k 547k (minor works) 547k $547k $547k

1.953 million 1.946 973k project included in the project included in the 61 Historic Building Roof Replacements maintenance funding list maintenance funding list

1.458 million 700k 700K project included in the project included in the 62 Housing Areas Exterior Improvements maintenance funding list maintenance funding list 92 Historic Preservation of Old Hospital Building 298 397k 0 0 Pier & Marine Learning Center Improve or Replace $613k reapprop $613k reapprop $613k reapprop $613k reapprop Statewide electric charging stations $200k $200k $200k $200k

Page 56 of 67 To: Diane Moody - Board Report From: Cody Griffith Date: 5.22.19 RE: Sales Update

Group Sales

Tentative Confirmed 2019 Business on the Contracts Books Accommodations Meeting Catering Accommodations Meeting Catering Quarter 2 $156,570.00 $49,427.00 $88,465.00 $0.00 $0.00 $0.00 Quarter 3 $326,849.00 $85,624.00 $161,304.00 $24,160.00 $2,400.00 $7,677.00 Quarter 4 $68,176.00 $8,378.00 $42,427.00 $77,800.00 $12,385.00 $67,500.00 TOTAL $551,595.00 $143,429.00 $292,196.00 $101,960.00 $14,785.00 $75,177.00

2020

Quarter 1 $69,813.00 $10,707.00 $41,496.00 $0.00 $0.00 $0.00 Quarter 2 $142,361.00 $24,140.00 $51,450.00 $0.00 $0.00 $0.00 Quarter 3 $163,812.00 $17,300.00 $58,698.00 $24,368.00 $1,500.00 $4,500.00 Quarter 4 $55,262.00 $10,461.00 $20,343.00 $103,000.00 $14,000.00 $50,000.00 TOTAL $431,248.00 $62,608.00 $171,987.00 $127,368.00 $15,500.00 $54,500.00

Partners

2019 Projected Business on the Books* Accommodations Meeting Catering Quarter 1 $0.00 $0.00 $0.00 Quarter 2 $257,861.12 $40,132.24 $165,185.50 Quarter 3 $266,977.03 $44,065.50 $152,855.00 Quarter 4 $18,924.00 $7,854.00 $13,440.00 TOTAL $543,762.15 $92,051.74 $331,480.50 2020 Projected 5% + Projected 5% + Flat Quarter 1 $77,217.03 $20,509.65 $89,605.50 Quarter 2 $279,721.92 $40,232.05 $150,920.00 Quarter 3 $284,981.81 $44,294.77 $153,302.00 Quarter 4 $24,837.75 $13,170.02 $13,440.00 TOTAL $666,758.51 $118,206.49 $407,267.50 *Projected reflects opportunity for movement in bookings

Page 57 of 67 Leisure

2019 Revenue Occupancy ADR

Quarter 2 $552,000 48% $345 Quarter 3 $920,000 72% $460 Quarter 4 $394,800 32% $329 Total $1,866,800 51% $378 2020 Quarter 1* $131,634 22% $309 Total $131,634 22% $309 2019 Q2 – 2020 Q4 Revenue Manager forecast based on current business on the books compared to previous year totals (available rooms by collection & ADR) and projected trends

Leisure has a 12 month booking window *1st Qtr. 2020 NCO row offline • Fire panel upgrades to #272 & #277 (Lofts & Reunion respectively) out of inventory (OOI) through June 2019. Guests relocated and/or released due to full occupancy on campus.

• Currently offering two nonrefundable rates available online: o Last Minute Deal 20% off, with a 60-day booking window. o Advance Purchase 20% off for reservations made with arrival 120+ days from the booking date. • 15% Return Visit “bounce-back” rate offered by Front Desk as incentive for guests’ to secure return booking.

Regional Trend:

Sales tracks Visit Seattle trends for conferences/conventions and hotel rooms because the Seattle activity has historically been one year ahead of Port Townsend.

Seattle April Preliminary Convention Sales & Services Recap

• 78.4% occupancy (down from last year’s 82.4%) • $190 ADR (down 6.4% from 2018) • $149 RevPAR (down 10.8% from 2018) • 14.4% increase in rooms available (54,420 more rooms or 1,814 rooms per day)

Two new hotels opened in Q1: • The Sound Hotel Seattle Belltown: 142 rooms, opened in February • The State Hotel: 91 rooms, opened in March

Page 58 of 67 May Marketing Board Packet

Upcoming Advertising:

Partner Collaboration Brochure – Drops June 1, 2019

KCPT “Spirit of the Yule” Sponsorship Ad – Drops June 5, 2019

PT Leader Print Ad – Drops June 5, 2019

Rose Theater Ad – Drops June, 1 2019

1889 Print & Digital Magazine Ad – Drops August 1, 2019

PT Leader Print Ad – Drops October 2, 2019

Social Media Analytics

 As of April 2019, Instagram (@fortworden) had 1,351 followers. As of May 2019, we have 1,401 followers, an increase of 3.7% in one month.  As of April 2019, Facebook (@fortwordenpda) had 6,372 likes. As of May 2019, we have 6,502, an increase of over 2% in one month.  Instagram   Largest post since the last report so far took place on Monday, April 22, 2019 – Caption “THINGs are happening over here  STG’s @thingnw lineup announced + tickets on sale this Friday, 4/26 at 9am PST. #thingnw#stgpresents #fortworden#porttownsend Poster by @hellomelendez”; With 128 likes, 8 archives, 33 shares, 20 profile visits, and 778 reach – 17% of accounts reached were not following us at the time of discovery.  Audience: o Top 5 cities where our followers reside: Port Townsend, Seattle, Sequim, Port Angeles, Tacoma o Top 5 countries where our followers reside: United States, Canada, Germany, UK, India o Age range: 58% of female audience are between the ages of 25 – 44. 54% of male audience are between the ages of 25 – 44. o 74% of followers are female, while only 26% of followers are male.  Facebook   Largest post since the last report took place on Tuesday, May 14 2019 and was a “share” of King 5’s article entitled Washington is the best state in the nation, U.S. News says – Caption “Washington ranks #1 in Nation!!! Come find out why with a visit to the Olympic Peninsula and Fort Worden this Summer season! We've got it all - the trails, the beaches, the wildlife, the farms, the food, the arts - and the list goes on and on. Put us on your bucket list today. #stayhere #playhere #relaxhere #fortworden #porttownsend”  With 9,429 people reached, 1,028 post clicks, 455 reactions, comments and shares and counting (all in 24 hours) – we have also seen 53+ new likes to our page this week alone (May 8 - 15), many of the resulting from this post.

Page 59 of 67  Partner (Information & Events) shared: Madrona Mindbody, Centrum, Coast Artillery Museum, WSP, Friends of Fort Worden.  Other Notable Initiatives, Events & the Communities Reactions   “Art in Gathering Places: Opening Reception” and 3-month show announced at Reveille at the Commons & Taps at the Guardhouse. o Article in PT Leader thanks to Press Release put out by Communications Manager Megan Claflin. o 1,290 people reached, 53 engagements, 23 reactions, 1 share, 1 comment.  Sip Northwest Magazine – Article entitled “Taste, Tour and Travel Port Townsend” featured Reveille at the Commons as a “must stop” alongside local gems like Finnriver, Alpenfire, Finiestere, Farm’s Reach Café, Better Living Through Coffee, Chimacum Farmstand and more. o Reveille feature reads: “For a more substantial — if dining on bread products alone is not an option — eaters can head to Reveille at the Commons in the nearly renovated culinary space of the historic Fort Worden, the military base-turned- park just two miles north of downtown. The park’s main restaurant is open for breakfast, lunch and dinner, with seasonal menus focused on local ingredients. Don’t miss Bubbles and Brunch each Sunday in which a farm-to-table brunch menu is matched with bottomless mimosas and Bellini’s; or the five-course tasting menu wine dinners each third Thursday of the month. o 1,476 people reached, 148 engagements, 40 reactions, 3 shares, 1 comment.  Congratulations to the upcoming Class of 2019; Celebrate Spring w/a free yoga class at Madrona if you bring a flower during the month of May; Propolis Bot Botanical Ale Tasting Dinner at Taps; A Taste of Italy Wine Dinner with Cru Selections; Cablehouse Beach Canteen Reopening; Job Fair at Fort Worden; Wildlife spotting on the trails & beaches via FOFW; Centrum Performance Tickets Now on Sale!; THING single day passes now SOLD OUT!; Cinco De Mayo Margarita specials at Taps; Vote Fort Worden as Best Meeting Space in the West!; etc.  Examples of comments over the month: “This is my favorite place to be. So much to do in that one spot and the view is amazing!”; “.....the Violent Femmes are playing!!!!!! OMG!!!! This should be on our date list, just saying.....”; “Modest Mouse sold out quickly, but they added a second night. Such a beautiful venue and the event was extremely well organized! I was hoping we'd see something similar this summer and was blown away by the Thing lineup.  ✨ ”; “We've camped at the Fort every year for about 25 years, but have never seen the rhodies blooming <3”; “We are fast reaching maximum infrastructure carrying capacity here folks. It is testing the livability of the town.”; “The more you post about how wonderful Washington state is, the more people will move up here. You think traffic is bad now? Housing is bad? Then stop encouraging people to move here. Tell them about the long, dark, gloomy days of winter when everyone is depressed.”

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C o u p o n s f o r t h e O p e n i n g o f C a b l e h o u s e B e a c h C a n t e e n

S e r i e s o f H o u r S i g n a g e f o r C o m m o n s & R e s t a u r a n t s N e w R a c k C a r d s D i s t r i b u t e d t o P a r t n e r s & V a r i o u s L o c a t i o n s i n P o r t T o w n s e n d

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