Minutes of November 5, 2002 Port of Hood River Commission Work Session/Regular Meeting
Expo Center Conference Room
3:30 P.M.

Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, Bill Lyons, and Hoby Streich; 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 3:40 p.m., which was used as a Fall Planning Session to review the financial and asset management of the five-year capital planning budget.

1. Financial Management. Executive Director David Harlan and Accounting Manager Linda Shames summarized the Port's Capital Budgeting Report Card noting the Commission's target is to complete 75 percent of the capital projects within the five-year capital plan. Harlan commented on the slow pace, and Shames suggested the Commission might want to consider a prioritization process.

During a discussion of the Port's 4 percent goal for Return on Investments of Assets, Shames commented that stable revenue sources are needed to fund, or break even on, the Port's cost center assets. While public enjoyment is critical, each cost center has to do its part, and improvements that do not return an investment should be avoided.

No change in the expenditure controls and authority process was recommended at this time.

2. Asset Management.

A. Toll Bridge. Executive Director Harlan emphasized that the only way to avoid a separate stringer repair project this fall is to commit to redecking the bridge starting in the fall of 2003, whether or not federal funding is received. Harlan reported that project specifications for the redeck could be ready by the end of December 2002; that two to three months lead time would be needed for ordering steel, and that the project could be awarded by the beginning of summer 2003, with a project start date of October.

Harlan also reported that the Oregon and Washington Departments of Transportation had been put on notice that the Port may act to ban the use of traction chains on the bridge for trucks only during the coming winter season. Harlan advised the Commission revenue losses would not be significant, and that further discussions would take place.

B. Waterfront Complex. Executive Director Harlan reported the waterfront zone is still in the refinement stages and that a meeting with some City of Hood River officials had been delayed until November 21, 2002. Harlan expected that a public presentation involving the entire Waterfront Task Force Team would be scheduled by the second week of December. Harlan recommended that zoning professionals be hired to finalize the design guidelines and assist with the rezoning process. Harlan and President Lyons then highlighted critical issues of the Waterfront Zone Internal Review Draft. Attorney Jaques commented on Parcel Y options. Harlan stated that over thirty Requests for Qualifications had been sent out and that 5:00 p.m. on November 14 is the deadline for returning the RFQ's.

Harlan reported on discussions he had had with the U. S. Department of Commerce Economic Development Administration (EDA) and with the State Community Solutions Team advising them that the Port would be applying for funding for the Integrated Technology Center and Waterfront Development Project. Because the Port would have a revenue source from tenants, Harlan stated EDA might not provide all the grant money the Port might request. Harlan also reported that discussions are continuing with Gorge Networks regarding GorgeNet's potential relocation adjacent to the Expo Center.

C. Marina. Executive Director Harlan reported that improvements to the Port Office Building would not be made until tenant commitments are received. Because the future is unknown for Gorge Games, the major customer of the Marina Green, staff suggested the Commission might want to consider the development of a recreational vehicle park, which would provide a significant Return on Investment.

D. Airport. Staff reported that several options are available for consideration at the airport, from runway extension or land acquisitions to decommissioning and using the land as industrial/commercial only. The construction of new T-hangars was discussed in reference to their Return on Investment, along with the possibility of again raising hangar rates in 2003.

E. Strategic Assets. Executive Director Harlan stated that a discussion of the Columbia Building would take place in Executive Session.

F. Land Management. The square footage currently available in vacant land and building space was reviewed. Executive Director Harlan noted the Port markets its properties through the Columbia Gorge Economic Development Association, the Port's website, local newspaper advertisements and through local realtors. The Wasco Business Park roadway configuration alternatives were discussed, as well as various industrial lands within Hood River County that are potentially available for purchase.

3. Economic Development and Communications. Executive Director Harlan provided the Commission with various articles on site selection information noting the high priority for any sector is ready-to-go sites. Harlan also stated the Port, as a member of the Columbia Gorge Economic Development Association, is part of a statewide marketing effort referred to as Oregon Franchise Marketing.

President Lyons closed the work session at 6:35 p.m. and reconvened the regular session at 7:00 p.m.

1. INTRODUCTIONS: Guests Matt Kosmata and Gary Fields introduced themselves.

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

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the October 1, 2002 (regular session) minutes.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS:

a) Executive Director: Executive Director Harlan reported that the Port's Technology Center and Wasco Business Park projects received number one priority rankings in the Community Facilities and Community Readiness categories, respectively, of the County's annual Needs and Issues Inventory. Harlan and Mike Doke, Economic Development Marketing Assistant, reported on their attendance at the Oregon Economic and Community Development Department's annual Challenge of Change conference. Harlan reported that Mill Plain Electric has secured the necessary equipment to begin the bridge utilities repair the week of November 11. The Commission was informed that over thirty requests had been received for the Waterfront Request for Qualifications. President Lyons suggested that, in order to avoid a special meeting, a motion might be appropriate extending the November 14 RFQ deadline. A motion authorizing staff to extend the RFQ deadline was made, however, ensuing discussion resulted in Commissioner Bohn withdrawing her motion and Commissioner Hosford withdrawing his second. Harlan reviewed his recent Technology Center funding discussions with Ann Berblinger of the U. S. Department of Commerce Economic Development Administration. Harlan provided the Commission with the following tenant updates: Full Sail's basement lease in the Columbia Building has been extended and the elevator issue is now off the table; Humanities Software has furnished a preliminary letter of commitment and an architectural services Request for Qualifications will be sent out; Electronic Assemblers has once again downsized their leased space in the Big 7 Building; and Port staff will be negotiating a reduced cost estimate with Kase Construction for DaKine Hawaii's fourth floor mezzanine expansion.

b) Other: Linda Shames, Accounting Manager, reported on her attendance at a finance conference.

6. ITEMS FROM WORK SESSION:

a) Bridge Redecking:

Motion: Move to authorize a commitment to begin the bridge redecking project no later than Fall 2003.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Bridge-Tire Chains: Commission action on banning use of winter traction chains for trucks only on the Hood River Interstate Bridge will be delayed until Executive Director Harlan has further discussion with the Oregon and Washington Departments of Transportation.

c) Waterfront Zone: The rezoning process remains in a draft stage, but Executive Director Harlan commented that revisions have been identified and will be further refined when he meets with representatives from the City of Hood River on November 21. Harlan stated a public presentation will hopefully be scheduled by the second week in December, depending on the outcome of the November 21 discussion with the City, and that he hopes to secure professional services to finalize the Guidelines document.

7. NEW BUSINESS:

a) DEQ Compliance Letter: The Oregon Department of Environment Quality issued a Notice of Noncompliance based on findings from an inspection of the Portsite storage yard located on the Waterfront. The Notice requires a response regarding identification and disposal of the contents of the drums found at the site.

Motion: Move to direct staff to respond to the DEQ noncompliance letter and hire an environmental consultant, in an amount not to exceed $15,000.00, to identify and dispose of the possible contaminants.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) KPFF Engineering Request: Executive Director Harlan stated that KPFF had provided services outside the original scope of work relative to the Second Street variance process and was requesting an additional $2,000.00.

Motion: Move to increase KPFF's engineering services budget for the Second Street project to a revised contract amount of $57,000.00.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) CGWA Request: The Columbia Gorge Windsurfing Association has requested a cash contribution from the Port for the purchase of trees to be planted on the inner west bank of the Hook. CGWA cited other improvements but was requesting action only on the trees at this time. Mike Doke stated he would like to discuss CGWA's request with the windsurfing schools, and Executive Director Harlan stated he would have further discussions with CGWA's Executive Director Diane Barkhimer.

Motion: Move to approve the expenditure up to $600.00 to partner with CGWA to plant trees at the Hook.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Approval of Accounts Payable: An invoice approved by the Finance Committee for the purchase of a floor cleaning machine was presented to the Commission for ratification, along with invoices for payment of Hood River County property taxes and geotechnical services at Wasco Business Park.

Motion: Move to approve accounts payables in the total amount of $50,966.05.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: At 7:48 p.m., President Lyons called the Commission into Executive Session 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 8:22 p.m. The following action was taken as a result of Executive Session.

Motion: Move to accept the high bid for the surplus property at Ruthton Point.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

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Motion: Move to make a Sale Offer to Fast Serv Hood River, Inc., and authorize the Commission President to sign the agreement if the offer is accepted by Fast Serv Hood River, Inc.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

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Motion: Move to authorize the Property Purchase-Counter Offer, as amended, with Key Development for the Columbia Building.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

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Motion: Move to ratify the Willow Ridge Subdivision settlement in the amount of $2,500.00.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

President Lyons adjourned the meeting at 8:25 p.m.