Gilliam County Court voted to initiate dissolution proceedings under state law for the Port of Arlington after the county received a notice from the Oregon Secretary of State that the port had not filed required audits for 2022, 2023 and 2024.

Judge Patnode reviewed the statutory process and the timeline the county must follow under Oregon Revised Statutes (ORS). The court cited a Secretary of State letter dated Aug. 26 that, the county said, instructed the county to begin the statutory dissolution process under ORS 198.335 through ORS 198.365 because the port had not filed audits for three consecutive years.

The statute, the judge said, requires the county to prepare and file a financial statement within 60 days of receiving the Secretary of State notice, then enter an order calling a hearing on dissolution. The hearing must be scheduled not less than 21 days nor more than 30 days after the filing of that financial statement; the notice is to be published once weekly for at least three weeks in a newspaper of general circulation in the district. After the hearing, if the county finds the district is operating and there is a need for it, the county may continue the hearing until reports are filed and then enter an order terminating further proceedings.

“Gilliam County does not, and I’m saying this for myself, have any intention of dissolving the Port of Arlington,” Judge Patnode said at the meeting.

Port of Arlington officials and counsel addressed the court. Anna Cavalieri, general counsel for the Port of Arlington’s board, told the court the port is working to bring the audits up to date and is not opposed to the county’s adoption of a resolution that documents the process the county must follow. Jed Crowther, representing the port in public comment, and other port representatives described corrective efforts and said they are coordinating with auditors and the Secretary of State.

Court action and language changes: Port representatives proposed two minor wording changes to the draft resolution to add the word “proceedings” in two sections so the resolution would refer specifically to “dissolution proceedings,” matching counsel’s recommendations. The court accepted that clarification.

After discussion, a commissioner moved and a second was recorded; the court voted in favor and adopted Resolution R2025‑13 initiating dissolution proceedings for the Port of Arlington. The court indicated it will file the financial statement (the court said that filing occurred the prior Friday) and will next enter an order calling the hearing within the 21‑to‑30‑day window. The court said it will publish required hearing notices and keep the hearing open while the port works to complete its audits. If the court finds the port is active and has a need, the statute allows the county to stop further dissolution steps once the audits are filed and the deficiency is corrected.

Port response and next steps: Port counsel said the port has submitted a corrective action plan and is working with auditors; port counsel requested that the county provide the updated resolution language before final adoption and thanked the court for acknowledging the port’s community role. Les Rourke and other public commenters also urged clarity and expressed concern about language that could be read as an intent to dissolve — the court and port officials said they did not intend to dissolve the port and that the steps are ministerial under the statute.

Authority cited: the court read aloud the sections of ORS 198.335–198.365 governing county duties when a special district fails to file required audits, and described the publication and hearing requirements.

The court will schedule the statutory hearing and publish notice; the court said it will receive regular reports on the port’s audit status and keep the hearing open if the port can show progress toward filing the missing audits.