PORT ANGELES — Five new board members have taken seats on the Port Angeles Downtown Association board as the embattled organization enters a year of potential change.

The new members joined the now-15-person panel at a crowded table Monday evening before going into executive session to discuss financial, legal or personnel matters, according to the agenda.

Josh Rancourt, who was unanimously elected board president, said Tuesday he could not discuss what transpired at the executive session, which was closed to the public.

“Our goal is absolutely to be transparent and have the community involved,” Rancourt said. “[The executive session] was on the agenda, and we went into it.

“The goal is not to hide anything.”

Before the board met in closed session, outgoing board President Bob Lumens, owner of Northwest Fudge and Confections, outlined the reasons behind the exclusion.

“We have to figure out where it is we are,” he said. “We don’t need this to be out to the whole world.”

As of Dec. 31, the PADA had $21,393 in assets, down from $34,120 Oct. 31, according to a balance sheet made available at the meeting.

Other new board members and their business or professional affiliations are Hayley Croxford, Moss shopping and retail; Merala Heins, Inspired gift shop; Angela Oppelt, Next Door Gastropub and Next Door Annex; Joseph Sheidler, Angeles Brewing Supplies; and Melissa Williams, Feiro Marine Life Center.

Board members still must decide if they will hire a new executive director to replace Barb Frederick.

Frederick was laid off Dec. 19. Board members cited a lack of funds to pay her $46,000 annual salary.

Also unknown is if the group will continue to manage the Main Street Program, which requires an executive director.

A letter of agreement between the PADA and the Main Street Program is due Thursday, but it’s a soft deadline, state Main Street Coordinator Sarah Hansen said Tuesday.

“If we see forward movement and progress, and we know they are working toward it, and we are in communication with them, we would try to be flexible,” she said.

The board has scheduled two upcoming special public meetings.

The first is a board retreat from 3 p.m. to 7 p.m. Sunday, Jan. 25, at a place to be determined.

The second is a special board meeting at 6:15 p.m. Monday, Jan. 26, at the PADA office, 208 N. Laurel St.

“The membership is a really, really important part of what we do here,” Rancourt said Monday.

“We need to seek input from them, we need to garner support from them, and it starts with scheduling public meetings for them.”

A work plan “for the immediate future” also should be prepared, Rancourt said.

Part of that work plan may include fulfillment of a new contract between the city and the PADA, which has about 150 members.

Councilwoman Cherie Kidd, who attended the meeting, said city officials want to negotiate a new agreement with the association.

Since mid-July, the city has withheld an estimated $25,300 from the association in Parking and Business Improvement Area (PBIA) funds.

They go through the city to the association as taxes on downtown businesses based on square footage.

In a Sept. 26 preliminary audit of organization finances, City Manager Dan McKeen expressed “a number of serious issues and concerns” over expenditures and bookkeeping procedures.

“We are ready and anxious to work with them once they make their choices and let us know where they’re going,” Kidd said Tuesday.

“There were ambiguities in the old contract.

“The city is optimistic we can work with the downtown association, a new board. It’s all part of a positive moving forward with this new year.”

The city is seeking “strong performance outcomes” from the association, Nathan West, city community and economic development director, said Tuesday.

“We are going to be interested in hearing from the new group as far as what in terms of services they may perform for the city and how we may work with them in terms of a new contract, particularly services for the downtown community and specifically the Main Street Program, ” West said.

The PADA has received state B&O — business and occupation — taxes that go to the organization through the state Main Street Program.

The program “helps communities develop their own strategies to stimulate long-term economic growth and pride in the heart of the community — downtown,” according to information on the state-sponsored website, http://tinyurl.com/PDN-mainstreet.

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Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at pgottlieb@peninsuladailynews.com.