>Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, and Hoby Streich; Attorney Jerry Jaques;
from staff, David Harlan, Mike Doke, Linda Hull, Linda Shames, and Laurie Borton

Absent: Commissioner Lyons

Media: Kirby Neumann-Rea

President Don Hosford called the work session to order at 6:05 p.m.

1. Waterfront Project: Executive Director David Harlan updated the Commission on a variety of items pertaining to the Waterfront. The Chamber-sponsored Forum on July 31 was well attended at the noon presentation; however, Harlan stated he was surprised, and disappointed, with the low attendance at the evening session. Harlan reported that Bill Smith of William Smith Properties Inc. (Smith) is anxious to move ahead on a pre-development agreement, which Smith thinks can be accomplished in 60 to 90 days; Harlan stated a more realistic expectation would be 6 to 8 months. Harlan did suggest that a separate agreement could be crafted to address a market analysis, and with the Port contributing to the cost of the study the Port would then own the research. A work session was held earlier in the day with Jeff Tashman, of Tashman Johnson LLC, presenting an overview for Port Commission and staff members, and City Council and staff on funding options. Harlan stated that Tax Increment Financing (TIF) under an urban renewal plan or combination of TIF/Reimbursement Agreement may be a more successful option than a General Obligation Bond or formation of a Local Improvement District. Harlan reported the matter would need further consideration and discussions between the Port and City. A Hood River Planning Commission meeting will be held on August 13 at City Council Chambers for the purpose of discussing the Waterfront Zone. Harlan reported that he is scheduled to speak at this meeting; and he will follow up on the suggestion that someone from Smith's office also be in attendance at the August 13 meeting. The Second Street alignment project is on temporary hold until further discussions with Smith identify his level of concern for the street placement; and it was also reported by Harlan that funds anticipated to have been received from the Community Incentive Fund are still in limbo due to the state's budget crisis and further delay could result in the pursuit of Immediate Opportunity Funds from the state. Harlan reported the Real Estate Committee would be meeting at the end of the week with outside consultants to discuss public/private partnerships and the Port's industrial lands inventory. Harlan referenced the Port of Everett/Maritime Trust model, with Jaques adding that those resources could be tapped into as needed, including outside legal counsel. The Columbia Gorge Community College (CGCC) has submitted a Conditional Use Permit for the siting of temporary modular units on the Expo grounds that will be used as classroom space beginning January 2004. Harlan reported that he would be attending the August 20 hearing; and noted the City had verbally agreed to waive utility hookup fees. Harlan reported staff would begin working on a ground lease for CGCC and then proceed on to an Intergovernmental Agency Agreement spelling out financial procedures and responsibilities.

President Hosford closed the work session at 6:55 p.m., and called the regular session to order at 7:03 p.m.

1. INTRODUCTIONS: Audience members present at the opening of the regular session introduced themselves to the Commission and Port staff.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: No modifications were noted at this time; however, Commissioner Streich later requested the addition of an action item to appoint the Airport Advisory Committee members, and a discussion of the Lower Hanel mill site.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Andy von Flotow attended the July 31 public Waterfront Forum and commented on the not-so-forward thinking approaches expressed by Executive Director Harlan regarding the question on how and who would pay for Waterfront amenities, and City Administrator Lynn Guenther's legality remarks regarding the November ballot Waterfront Initiative. Mr. von Flotow suggested any further battles could be avoided if the Port would consider his offer to purchase the Waterfront acreage and build a park north of Portway Avenue. Attorney Jerry Jaques stated that without knowing all the terms of von Flotow's proposal an immediate answer was unlikely, and questioned the message that would be sent to a developer if the Port considers another proposal outside the Request for Proposal (RFP) process. Jaques stated that Mr. von Flotow is free to submit a written outline detailing his proposal, but the Commission would be under no obligation to consider it. Executive Director David Harlan stated a simple yes or no answer would be difficult without knowing more of the details, and that more was involved in the development of the Waterfront than just a park. Harlan also commented the legalities would have to be explored if the Port entertained a purchase agreement from a party that did not participate in the Request for Qualification and RFP process. Von Flotow maintained a battle could be avoided, the Port would make money, and the folks who want a park north of Portway Avenue would be happy.

Matt Kosmata questioned Executive Director Harlan's quotes related to maintenance costs of a waterfront park, stating his opinion that the numbers seemed high compared to budget document costs of the Marina Park and Event Site. Kosmata wanted to know how the figures were derived and accused Harlan of swaying public opinion. Kosmata continued his comments by providing statistics on Richland, Washington parks along the Columbia River. Harlan responded that because he was not privy to the Richland statistics, he could not comment on Kosmata's claims. Harlan did state there were "rules of thumb" for park development and maintenance, and that people often ignored the factors of added costs associated with vandalism, irrigation problems, damage caused by renters who ignore park guidelines, and the hand-holding that drives up staff time and expenses.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the July 15, 2003 (work/regular session) and July 22, 2003 (special session) meetings.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

5. REPORTS

a) Executive Director:
§ Funding uncertainties remain to be answered for both the Port and Columbia Gorge Community College regarding the placement of temporary classroom units at the Expo Center. Harlan reported the College will appear at the August 20 Planning Commission hearing regarding their Conditional Use Permit, and that he would attend as well.
§ The Port is still waiting to receive the Oregon Department of Transportation's (ODOT) plan review of the bridge decking project. An Interagency Agreement with ODOT, who will act as the construction manager, will be required.
§ Harlan reported the July 31 waterfront public forums went well, although he was disappointed in the evening turnout. A presentation on funding alternatives for the Port Commission and City Council was presented earlier in the day by Jeff Tashman. Harlan reported he would be making a presentation to the Planning Commission at the August 13 Waterfront Zone hearing. Harlan also reported that City Council had rejected the petition initiative, which meant the initiative would appear on the November ballot for vote by City residents.
§ Harlan reported that he and President Hosford met with Ball Janik lobbyist Hal Hiemstra the previous day. Items discussed included the Port's denied request for federal funds in the amount of $972,000 for the Integrated Technology Center and Hiemstra's joint letter that is being drafted for the Port, City, County, and College signatures regarding technology center funding; discussion of a pedestrian bridge on the Waterfront to Waucoma Island; identifying a state contact relative to the new Homeland Security regulations for port facilities handling passenger vessels with capacity of 150 or more; and securing funding to assist the Odell Sanitary District which is nearing capacity.
§ Harlan reported that DaKine Hawaii's right of first refusal deadline on the Columbia Building is August 15, and that Key Development is talking about a cash deal for the purchase of the building.
§ A groundbreaking ceremony for Cardinal Glass at the Lower Hanel Mill Site is scheduled for August 20.
§ An informational item for the Commission was reported by Harlan regarding a small cleanup project at UTS Portsite involving some abandoned barrels. Harlan reported action would be taken under New Business.
§ The Wasco infrastructure project has been advertised; bids are due the morning of August 18 and will be opened that afternoon. Harlan reported the Port's Immediate Opportunity Funding application, which would be used for the infrastructure project, has once again been delayed and won't be considered by the Oregon Transportation Commission until their September meeting.
§ Harlan reported the DiLoreto architectural firm has revised estimates based on discussions with Humanities Software staff and that a meeting will need to be scheduled in order for the local Humanities staff to present the number to their management office.
§ Additional Airport Master Plan meetings are scheduled for September, so Harlan recommended the Commission appoint members to the Airport Advisory Committee.
§ The Columbia Gorge Windsurfing Association (CGWA) has requested the Port authorize their access to the Auto Cad file on the Waterfront prepared by Carl Peron. Attorney Jaques reviewed the matter stating the Auto Cad file is a client-working product and that the JPEG produced by the Auto Cad file is the public document. Harlan stated his written reply to CGWA would indicate they could have access to the JPEG document only.

§ Harlan requested a meeting of the Personnel Committee to discuss the disability package, as per his contract.

b) Other: President Hosford first thanked Commissioner Duckwall for providing the Oregon Economic Profile information, which was used by Harlan in the July 31 waterfront presentation.
President Hosford commented that he, Linda Hull, and Jaques had worked on the Committee Governance language and stated that further discussion would occur under New Business.
Mike Doke reported that membership on the Airport Advisory Committee was comprised of five public and two Commission members. Seven applications had been received in response to the public notice and Doke requested the Commission consent to adding the Airport Advisory Committee appointment to the agenda as an Action Item.
Commissioner Streich requested the Commission's consent to further investigation and discussion clarifying the Port's interest in obtaining additional industrial lands. Harlan stated he felt this critical priority, which the Commission has identified as a Strategic goal item, could be accomplished by using outside resources and the county assessment. Harlan urged the Commission to consider future acquisitions even though the Return on Investment might not be as good as on the waterfront.

6. ITEMS FROM WORK SESSION: No further discussion.

7. NEW BUSINESS:

a) Committee Appointments: Linda Hull explained the committee makeup could be modified by the Commission as necessary but that the procedural language presented in the current draft was ready for Commission approval. Executive Director Harlan stated that some blanks remained to be filled in regarding membership and quorum requirements and it would be brought back to the Commission at the August 19 meeting.

Motion: Move to approve the Governance on Committees as revised.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Motion: Move to ratify the internal and organizational committee appointments for 2003-2004.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

Committee assignments are as follows: Airport - Commissioners Duckwall and Streich; Architectural Site Review - one Commissioner; Budget - All Commissioners; Community Relations - Commissioner Streich; Finance -
Commissioners Duckwall and Lyons; Personnel - Commissioners Hosford and Bohn; Real Estate - Commissioners Hosford and Lyons; Waterfront Recreation - Commissioner Bohn; Community College/ITC (Ad Hoc) - Commissioners Bohn and Streich; Pacific Northwest Waterways Association - Commissioner Hosford; Hood River County Economic Development - Commissioner Bohn; and Hood River Urban Renewal - Commissioners Hosford and Streich.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Motion: Move to appoint, from the public, John Benton, Dwayne Troxel, Ed Drew, Felix Tomlinson, and Richard Clarke to the Airport Advisory Committee; and from the Commission, Fred Duckwall and Hoby Streich.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

b) UTS Environmental Bid:

Motion: Move to approve the Coles Environmental Consulting, Inc. bid in an amount not to exceed $1,500.00 for UTS Portsite.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

c) Approval of Accounts Payable:

Motion: Move to approve the Accounts Payable amount of $6,000.00 to Fitch, Inc., for bond rating services.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

8. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:25 p.m. under ORS 192.660(1)(e) Real Estate.

At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:55 p.m. No action was taken as a result of Executive Session.

The Commission had further discussion on Mr. von Flotow's offer to purchase the Waterfront. Commissioner Bohn commented a written response needs to be provided; Commissioner Streich stated the loss of job creation on the Waterfront if the property were sold; Commissioner Duckwall stated the sale would not fit into the Port's Strategic Plan; and Executive Director Harlan stated the loss of industrial land would impact Goal 9.

9. NEXT MEETING DATE: August 19, 2003 at the Expo Center Conference Room.

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

---

THESE MINUTES ARE NOT OFFICIAL, as they have not been approved by the Port Commission. These minutes are for review and are subject to change and/or approval at the September 23, 2003 meeting.

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: Linda Shames, from staff

Media: RaeLynn Ricarte

President Don Hosford called the work session to order at 6:04 p.m.

1. Waterfront Consulting Services: Executive Director David Harlan introduced Dick Hill and David Blum, commenting that their consulting expertise in public/private partnerships and industrial lands inventories would be beneficial to the Port in the Waterfront development project. Hill and Blum discussed their experiences and observations from recent projects and lessons learned. Hill and Blum stated the Port needs to have a clear idea of what it wants out of the development and what the priorities are; take the time to educate the people who are interested in the development; enlist stakeholder participation and establish a lay technical advisory group that would meet to review and discuss the process.

President Hosford closed the work session at 6:50 p.m., and called the regular session to order at 7:03 p.m.

1. INTRODUCTIONS: Audience members present at the opening of the regular session introduced themselves to the Commission and Port staff.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: The Commission consented the discussion on the Community College (Reports-Other) would follow the approval of minutes, at the suggestion of Executive Director David Harlan.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Andy von Flotow attended the meeting as a follow-up to the August 5 Commission meeting in which he proposed to convert the Waterfront property north of Portway Avenue to a park, at his expense, and in return would ask the Port to give him the remainder of the Waterfront property to recoup his expenses. Mr. von Flotow stated that he had requested information on the current property leaseholders but was informed by Executive Director Harlan not to put forth too much effort. Von Flotow commented that, according to what he heard at the July 31 public Waterfront Forum, the Port could not afford a park, but von Flotow reiterated that he could. Commissioner Lyons stated the Port had gone through a Request for Qualification advertisement process and questioned Mr. Von Flotow why he had not responded. Von Flotow answered that he was not aware of the RFQ publicly advertised, and that he was not proposing to develop the Waterfront. Lyons informed von Flotow that he stood behind Executive Director Harlan's response and the public process, and that the Port Commission did not have any means to talk about a different type of deal because it's already in a public RFQ and RFP process. Commissioner Duckwall offered his opinion that consideration of an offer that differed from the public process would be unethical. President Hosford called the 5-minute time limit and thanked von Flotow for his comments.

President Hosford allowed questions from audience members who had not signed up to speak but asked for clarification on the park acreage (defined by the proposed zone as a minimum of 2 and a maximum of 5 acres), Hook improvements (to be rezoned from industrial to recreation/commercial, therefore some form of development would be the only way to improve The Hook); and setback footages (the first 50 feet public access 24 hours a day, with limited development such as public restrooms, court yards, etc., in the last 25 feet).

4. APPROVAL OF MINUTES:

Motion: Move to approve the meeting minutes of the August 5, 2003 work session.
Move: Streich
Second: Duckwall
Vote: Aye: Duckwall, Hosford, and Streich
Abstain: Bohn, and Lyons
MOTION CARRIED

************************************************************

Motion: Move to approve the minutes of the August 5, 2003 (work/regular session) meeting.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Abstain: Lyons
MOTION CARRIED

5. REPORTS

b) Other - Community College: Dennis Whitehouse, Campus Services Director for Columbia Gorge Community College (College), and Reine Thomas, Dean of Instruction for the College, informed the Commission the lack of State funding has forced the College to temporarily suspend their plans to locate modular classroom facilities adjacent to the Expo grounds. Commissioner Lyons stated his appreciation to Whitehouse and Thomas for personally informing the Commission of the College's decision. Executive Director Harlan advised Whitehouse and Thomas the second floor of the UTS Building was still an option the College could consider for a computer lab.

a) Executive Director:

§ Waterfront: Executive Director Harlan updated the Commission on several changes to the City's draft zone ordinance. Harlan reported he would be attending the September 10 Hood River City Planning Commission meeting to discuss the zone. Harlan informed the Commission that earlier in the day he had made another public presentation on the Waterfront to the Lions Club. Harlan commented that he and Mr. von Flotow had exchanged informal correspondence regarding von Flotow's August 5 offer and that a formal letter would be mailed to von Flotow declining his offer to develop a park to the north of Portway Avenue on the Waterfront. Although he could go either way (proceed or hold off) on the Second Street redesign project, Harlan recommended the Commission wait until the spring of 2004 to make a decision because this would allow additional time to identify both the Port's and William Smith Properties' objectives and study a traffic analysis that Kittelson & Associates will be providing the City in a couple of weeks. Harlan also stated that Attorney Jerry Jaques would begin drafting an Intergovernmental Agreement between the Port and City of Hood River regarding a 20-year inventory of industrial property (State Goal 9) in order to satisfy LCDC requirements.
§ Bridge: The bridge revenue bond was awarded on August 7 to Banc One, the lowest of seven bidders, and the proceeds will be deposited when the sale closes on August 28. The Oregon Department of Transportation is in the final review process of HNTB's plan to redeck the Hood River-White Salmon Interstate Toll Bridge. Harlan stated that construction management is an issue that remains to be determined. Harlan commented that he had met with one potential deck supplier who indicated steel could become available within 5 weeks of an order date.
§ Columbia Building: A pending sale agreement with Key Development of Bend for the Columbia Building will close on August 29. Harlan stated that DaKine Hawaii did not choose to exercise its option to purchase the building, and that the DaKine lease renewal should be finalized this week.
§ Wasco Infrastructure: Harlan reported that bids were opened today and that two of the four bids were under the engineer's estimate. Harlan recommended awarding the bid, pending the engineer's review, in order to take advantage of the remaining construction season window. Harlan also reported that the Immediate Opportunity Fund application for the infrastructure project is scheduled to be heard at the Oregon Transportation Commission's September 17 meeting.
§ Humanities Software: Humanities home office in Wisconsin is in the process of reviewing revised numbers, based on 90 cent per square foot, and Harlan stated he anticipates the home office will accept the numbers and provide a letter of commitment to proceed with the construction of a new building at the Wasco Business Park. Harlan stated the City has indicated a traffic impact analysis will be required.
§ Cardinal Glass/Homeshield: Groundbreaking ceremonies for the Cardinal Glass plant at the Lower Hanel Mill site in Odell are scheduled for August 20. Homeshield, a Cardinal Glass vendor, who will occupy the former Western Power Building, has signed a lease, which contains interim facilities language.
§ Air Quality: Trends indicate the air quality in the Columbia River Gorge is improving, and the involved State agencies, Gorge Commission, and local jurisdictions have accepted the data. The Forest Service, however, will perform their own study, and if this study indicates restrictions need to be imposed, Harlan stated the State has indicated it would not endorse a Forest Service study.
§ Timber Incubator Building: An incubator tenant had approached the Port offering to purchase the building; however the deal doesn't pencil out because the building is too new and grant monies would have to be repaid.
§ Miscellaneous: Harlan reported a Big 7 Building tenant is in arrears on monthly lease payments and an eviction notice has been served; Harlan stated he would try to write a Director's Report before leaving August 25 on a 2-week vacation; and the Ken Jernstedt Airfield will host this year's Fly-In is the weekend of August 23-24.

b) Other - Personnel Committee: Commissioner Bohn reported the Personnel Committee met to discuss a disability insurance policy, as provided for in the Executive Director's contract, which allows for a percentage of the Director's monthly salary to purchase this policy. Attorney Jaques stated the Executive Director could select other options if unused dollars exist.

6. ITEMS FROM WORK SESSION: The Commission consented that further discussion on the Waterfront Consulting Services would follow Executive Session.

7. NEW BUSINESS:

a) Port Committee Recommendations: Executive Director Harlan's recommendations to the Commission on the size and makeup were as follows: the Architectural Site Review Committee shall have five members; the Community Relations Committee would be a working advisory committee including multiple port staff participation and not operate under a quorum requirement; and that the Waterfront Recreation Committee have six appointed members representing a broad range of interests and perspectives.

Motion: Move to approve the Port committee recommendations.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Western Power Lease:

Motion: Move to approve the short-term lease with Homeshield for the former Western Power Building.
Move: Streich
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Wasco Infrastructure RFP Bid Award:

Motion: Move to award the Wasco Infrastructure project, contingent upon the engineer's review, to JAL Construction of Bend, Oregon for the bid amount of $258,706.18.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Benefit Plan:

Motion: Move to approve the Benefit Plan for the Executive Director.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Approval of Accounts Payable: Linda Shames, accounting manager, provided information via memo on the airport insurance policy that was up for renewal, indicating that terrorism coverage is separate from the general liability policy. Shames reported that claims against a terrorism policy had to meet three very specific requirements in order for a claim to be paid, and chances of all three conditions being met were very small. Executive Director Harlan recommended the terrorism insurance be declined.

Motion: Move to approve the Accounts payable in the amount of $3,600 to Regal Aviation for renewal of the airport general liability insurance policy.
Move: Streich
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:10 p.m. under ORS 192.660(1)(e) Real Estate, and ORS 192.660(1)(f) Exempt Records. Guests Dick Hill and David Blum were invited to attend the Executive Session.

At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:53 p.m. The following action was taken as a result of Executive Session.

Motion: Move to authorize the Executive Director to execute a Personal Services Contract, in an amount not to exceed $38,800.00, with Richard Hill Associates for work to be completed by December 31, 2003.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

9. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on September 16, 2003 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 8:55 p.m.