Minutes of December 3, 2002 Port of Hood River Commission Work Session/Regular Meeting
Expo Center Conference Room
6:00 P.M.

Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, Bill Lyons (work session only), and Hoby Streich (arriving at 6:52 p.m.); Attorney Jerry Jaques; from staff, David Harlan, Mike Doke, Linda Hull, Linda Shames, and Laurie Borton

Absent: None

Media: None

President Bill Lyons called the work session to order at 6:08 p.m.

1. Waterfront Request for Qualifications: President Lyons reviewed the eight responses to the Waterfront Request for Qualifications (RFQ's). Lyons further stated that no decision would be made at this meeting. The Real Estate Committee will work with Port staff to define the qualification process that could lead to a Request for Proposal invitation. The eight respondents, A-1 Hospitality, D.M. Stevenson Ranch, Gerding/Edlen Development Company LLC, Harper Houf Righellis, Inc., Heritage Investment Corporation, Park Plaza, Inc., Redevelopment Consultants, LLC, and William Smith Properties, Inc., will be notified of the process and that interviews would take place by the end of February.

2. Waterfront Zone Status: The Port's intention of scheduling a December public hearing on the waterfront zone has been put on hold. Three issues remaining to be resolved before a public hearing can be scheduled are the timing of the rezoning of Lot 7 from light industrial to recreation/commercial; parking orientation on Lot 6; and recreational access in the Nichols boat basin area. Executive Director Harlan reported that he would be meeting with representatives from the City to discuss these issues on December 19.

President Lyons closed the work session at 7:00 p.m. Vice President Hosford reconvened the regular session at 7:01 p.m.

1. INTRODUCTIONS: Matt Kosmata and Gary Fields were present at the meeting.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: None.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Matt Kosmata questioned if an Executive Session occurred during the November 5, 2002 afternoon work session and was told the door had been temporarily closed due to noise from the Visitors' Center. The Commission also clarified for Kosmata the November 5, 2002 worksession discussion regarding the delay of a decision to ban truck traction chains on the Hood River Interstate Bridge until further discussions took place with the Oregon Department of Transportation. Gary Fields requested to hold his comments on the waterfront property purchase until the item came up through the agenda, which Vice President Hosford allowed.

4. APPROVAL OF MINUTES:

Motion: Move to approve the November 5, 2002 (work/regular session) minutes.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

5. REPORTS:

a) Executive Director: Executive Director Harlan reported that the Port's lobbyist, Hal Hiemstra of Ball Janik, LLP remains optimistic that the $1.35 million federal earmark for bridge funding can survive. Harlan reported another meeting with the City regarding unresolved waterfront zone issues will take place on December 19 and that the Real Estate Committee will develop bullet points summarizing the Port's position for those discussions. Harlan stated the Port's policy on issuing non-revenue bridge crossing tickets needs to be clearly defined to avoid abuses for purposes other than fire, life, and safety services. Policy language will be brought to the Commission for consideration at the January 2003 meeting. Harlan stated that the City of Hood River would be providing a letter notifying the Port that a Second Street variance will not be necessary because the proposed design of the street meets the intent of the City's Transportation System Plan, and that the street design standards will be incorporated into the Waterfront Zone. Harlan advised that the due diligence process remains to be completed on the recent purchase of the entrance property to the Waterfront. Harlan and the Commission addressed Gary Fields' concerns about the purchase price, zoning, and marketing efforts. Harlan stated the Port is in receipt of a Voluntary Cleanup Agreement from the Oregon Department of Environmental Quality (DEQ) regarding DEQ's review and investigation oversight relative to the identification of substances found in abandoned barrels at the UTS Portsite yard. A minimum deposit of $1,500 as an advance against DEQ costs that may be incurred will be required, and Harlan requested that the matter be added to the agenda as an Action Item. Technology Center drawings submitted by architect Kevin Cooley, which represent a phased construction approach at the Expo Center, were provided to the Commission for review and discussion. Harlan stated that engineering work for Wasco Business Park is on hold until tenant scenarios are more clearly defined, but he did state that traffic light discussions for the intersection of Rand Road and Cascade Avenue are taking place. Harlan reported that he would be attending an Oregon Department of Transportation STIP (State Transportation Improvement Plan) meeting on December 5. Additional items brought to the Commission's attention that were not listed on the agenda included a reminder that the Ruthton Point property deal should be completed by December 12; and that DEQ will be doing site work at the Nichols Boat Basin and has requested to test adjacent Port property to determine if any contamination migration has occurred. Discussion on DEQ's request resulted in a Commission consensus to allow the testing provided DEQ provides their work plan to the Port for prior review and approval. Harlan reported the City of Hood River has requested access to various Port properties relative to riparian and wetland issues. Harlan stated the Commission should be concerned how setback issues might impact development on the Waterfront. The Port was unable to send a representative to the City's workshop because it conflicted with tonight's Commission meeting. Harlan stated he would be attending an Oregon Economic Summit on December 9 to comment on the needs of rural communities.

The final item for the Director's Report was a request to reschedule the January 2003 Commission meeting to the second or third Tuesday of the month because of holiday and vacation conflicts. The Commission agreed to hold its January meeting on the 21st.

b) Other: Mike Doke informed the Commission the Hood River Valley Parks and Recreation District has requested that a staff person be appointed to represent the Port on their Parks and Recreation Needs Assessment Committee. There was Commission consensus that the Executive Director would appoint staff to represent the Commission on this Committee.

6. ITEMS FROM WORK SESSION:

a) Ban on Truck Traction Chains on the Bridge: Harlan reported on his discussions with the Oregon and Washington Departments of Transportation regarding a ban on the use of chains on the bridge by heavy trucks. Harlan reported that ODOT's preference was a total ban on truck traffic on the bridge when traction devices are required on Interstate 84 or Washington State Route 14 in the vicinity of the bridge so that drivers don't have to stop to unchain the vehicle and re-chain once they've crossed the bridge. ODOT had also discussed this preference with the Port of Cascade Locks. Attorney Jerry Jaques stated the Cascade Locks Port Commission had discussed a similar ban but may not, after all, impose a ban. Harlan commented a ban may be a one- or two-year remedy until the bridge surface redecking has been completed. Jaques suggested the Commission may want to consider a temporary penalty fee should a truck driver ignore the ban.

Motion: Move to impose a one-year ban on traction chains used by trucks, Class 8 and above having a gross vehicle weight of 33,000 pounds or heavier, to include a $100 penalty fee if the ban is ignored.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

b) Airport Environmental Agreement:

Motion: Move to authorize the Commissioners to sign the Airport Environmental Agreement.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

c) UTS Portsite Environmental Agreement:

Motion: Move to authorize the Executive Director to sign the DEQ Voluntary Cleanup Agreement and authorize payment of a $1,500 minimum deposit to DEQ for UTS Portsite cleanup.
Move: Streich
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

7. NEW BUSINESS:

a) 2003 Rates for T-Hangars and Moorage: Staff has recommended a 10% increase to the T-Hangar rates for 2003 in an effort to establish market rates at the Ken Jernstedt Airfield and to bring the rent closer to the rate that would need to be levied should new T-Hangars be built within the next couple of years. A 3% moorage rate increase is also being recommended.

Motion: Move to approve a 10% T-Hangar and a 3% moorage rate increase for 2003.
Move: Duckwall
Second: Bohn

Commissioner Streich inquired about tenant notification and he was informed by staff that letters would be sent following the meeting advising tenants of the action taken by the Commission. Streich commented that a 30-day notice regarding a rate increase would seem more appropriate. Commissioner Duckwall amended his motion as follows:

Motion: Move to approve a 10% T-Hangar and a 3% moorage rate increase for 2003 to become effective January 15, 2003 to allow a 30-day notice to moorage and hangar tenants.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

b) Automated Weather Observation System RFP: Mike Doke advised the Commission that a Request for Proposal (RFP) has been developed for engineering work associated with establishing an Automated Weather Observation System (AWOS) at the Ken Jernstedt Airfield, and that Commission approval was needed to advertise the RFP. Doke further stated that 90% of the cost would be paid for with Federal Aviation Administration grant funds.

Motion: Move to authorize staff to advertise the RFP for the AWOS at the Ken Jernstedt Airfield.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

c) Hood River Electric Cooperative Airport Easement: Hood River Electric Co-Op has requested that an easement be granted for the purpose of placing underground fiber optic data transmission lines and necessary underground appurtenances related to their NOANet project.

Motion: Move to approve the easement with Hood River Electric Cooperative for NOANet and authorize the Commission President to sign.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

d) Approval of Accounts Payable: None.

8. EXECUTIVE SESSION: Vice President Hosford called the Commission into Executive Session at 8:15 p.m. under ORS 192,660(1)(e) Real Estate; and ORS 192.660(1)(h) Litigation.

At the conclusion of Executive Session, the Commission was called back into regular session at 8:55 p.m. The following action was taken as a result of Executive Session.

Motion: Move to temporarily rescind authority to consummate the real estate transaction with Key Development.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

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Motion: Move to authorize the appraisal and re-purchase of a lot at the John Weber Business Park from Champion Manufacturing, less transaction costs. (Upon recommendation from Attorney Jaques, this motion was withdrawn and restated as follows.)
Motion: Move to authorize the appraisal of the Champion Manufacturing lot at the John Weber Business Park.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

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Motion: Move to authorize a month-to-month lease extension to Heelside in 2003 contingent upon current lease terms being paid in full by December 31, 2002.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

Vice President Hosford adjourned the meeting at 9:00 p.m.