Minutes of January 21, 2003 Port of Hood River Commission Work Session/Regular Meeting
Expo Center Conference Room
5:30 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 5:35 p.m.

1. Project Updates/Status: President Lyons stated the worksession was intended to bring the Commissioners up to date on the status and timelines of various projects. Executive Director David Harlan discussed the following projects:

Waterfront Development - A January 9, 2003 meeting with the City of Hood River was canceled because of confusion over a draft Intergovernmental Agreement regarding development, operation and maintenance of a park on Lot 7. The Commissioners will provide comments relative to zoning, guidelines, CC&R's (covenants, conditions and restrictions), and park development to Executive Director Harlan in an effort to resume constructive discussions with the City and the Waterfront Task Force.

Wasco Business Park - Executive Director Harlan reported that staff is waiting for responses to the Request for Proposals for architectural services, and that City staff continues to promote a Planned Unit Development approach. Harlan stated that Jody Seaborn of Seaborn Engineering would be available during regular session to discuss options for the street infrastructure.

Integrated Technology Center - GorgeNet continues to express interest in being located in the Expo Building in anticipation of an Integrated Technology Center being located at the Expo, but they are also interested in floor space in the Big 7 Building because of their immediate need for additional space. Staff will continue discussions with GorgeNet regarding the best options available for both the Port and GorgeNet.

Industrial Lands - Executive Director Harlan reported on a cooperative effort underway to respond to a state lead involving a site south of Hood River.

Bridge Redecking Project - Executive Director Harlan stated a cost benefit would be seen if the Port were able to provide a staging area to the successful bidder. The savings benefit is difficult to quantify according to the Port's bridge engineering firm HNTB because the successful bidder's methods and approach to the work are as yet
unknown. However, HNTB recommended the staging area provision be included in the bid documents as an optional line item and negotiating tool.

President Lyons closed the work session at 7:05 p.m. and reconvened the regular session at 7:10 p.m.

1. INTRODUCTIONS: Matt Kosmata, Maui Meyer, Jennifer Donnelly, and Jody Seaborn were present at the meeting.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: No items were added at this time, however additions to the agenda were made as topics were discussed later in the meeting.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Matt Kosmata's comments on the Expo Building revenue losses were addressed by accounting manager Linda Shames.

4. APPROVAL OF MINUTES:

Motion: Move to approve the December 3, 2002 (work/regular session) minutes.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons (work session only),
and Streich
Abstain: Lyons (regular session)
MOTION CARRIED

5. REPORTS:

a) Executive Director: Executive Director Harlan reported the Port's federal lobbying efforts were focusing on defending earmarks for a $550,000 State and Tribal Assistance Grant (STAG) earmark for the City's Waterline Project; a $100,000 Economic Development Initiative earmark for the Integrated Technology Center Project; and a $1.35 million earmark for the Bridge Redecking Project. Harlan commented that he hoped to reschedule a Waterfront meeting with the City for late January, but nothing has been scheduled as of yet. Harlan informed the Commission the Port is in receipt of a letter from the City of Hood River approving the plans for the Second Street construction and those designs have been submitted to the Oregon Department of Transportation for approval. Infrastructure discussions are continuing with the City regarding development of Wasco Business Park and Executive Director Harlan stated that Jody Seaborn, of Seaborn Engineering, would discuss her work in further detail later in the meeting. Office and equipment location options involving Internet service provider GorgeNet, relative to the Integrated Technology Center, are ongoing and may be determined by timeline requirements from GorgeNet. Harlan reported the Port is pursuing eviction of Heelside, a UTS Portsite tenant, and that further discussion would take place in Executive Session. Harlan commented on a real estate transaction being pursued by Key Development and that the Port is keeping the interests of the building tenants a priority. Harlan also reported the Port is working with the State and the County in pursuit of an industrial site south of Hood River. A final item for Commission consideration was the timing of the Commission's March meeting and scheduling the Spring Planning Session. President Lyons indicated action would be taken later in the meeting.

b) Other: Mike Doke reported that one response had been received to our Request for Proposals for engineering work associated with an Automated Weather Observation System at the Ken Jernstedt Airfield and that he would request the Commission to authorize a Scope of Work. President Lyons indicated action would be taken later in the meeting. Doke also commented that Century West, the company preparing the Airport Master Plan, would be meeting with Port airport advisory committee members next week in preparation for a public Airport Master Plan meeting to be held sometime in February. President Lyons appointed commissioners Hoby Streich and Fred Duckwall to the Airport Advisory Committee. The Oregon Film and Video Office has contacted the Port regarding a potential $2 million economic benefit to Hood River, which is one of three sites being considered for filming a rescue pilot for television. If the pilot were to be picked up, Doke reported that another 13 episodes would be filmed. Staff has recommended rent-free use of the Western Power Building for February and March while the pilot is being filmed if the company would agree to pick up utility costs and provide the necessary insurance. Should the series be picked up, the company would then enter into a short-term lease agreement for continued use of the Western Power Building. Doke reported the Port's donation to the Hood River County Parks and Recreation Department of surplus land located along the Indian Creek Trail is close to being finalized. Parks and Recreation has requested that a hole be filled before they accept the donated land. Doke reported that arrangements have been made to use soil to fill the hole.

6. ITEMS FROM WORK SESSION:

a) Wasco Business Park Street Options: Jody Seaborn, of Seaborn Engineering, provided maps illustrating the advantages and disadvantages of road access options. Seaborn has met several times with Cindy Walbridge, City Planning Director, and Seaborn stated her interpretation of the access requirements differ from Walbridge's interpretations. Seaborn stated she would continue to research a Planned Unit Development approach, along with utility and storm drain costs associated with the different access options. There was Commission consensus for Seaborn to move ahead with the plan illustrating the private drive in the current location to provide the greatest flexibility.

b) Second Street Bids:

Motion: Move to authorize staff to bid the construction of Second Street upon engineering completion contingent on plan approval by the City and the Oregon Department of Transportation.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Columbia Building Mezzanine:

Motion: Move to authorize ratification of the Real Estate Committee's recommendation to proceed with construction of a mezzanine in the Columbia Building in a contract amount up to $25,000.00.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) UTS Yard Cleanup: Executive Director Harlan reported on a letter that had been received from the Department of Environmental Quality in which the contractor had identified additional barrels that would require testing.

Motion: Move to authorize an increase from $4,500 to $5,000 for the environmental Scope of Work at UTS Portsite.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Bridge Redeck Staging Area:

Motion: Move to instruct HNTB to identify cost benefits of a staging area for the bridge redecking project and incorporate this provision into the bid documents.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

f) Meeting Schedule:

Motion: Move to resume bi-monthly Commission meeting schedule, beginning February 2003, for the first and third Tuesdays of each month.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

7. NEW BUSINESS:

a) Goal 5 Wetlands, Riparian Corridors and Upland Wildlife Habitat Inventory: Jennifer Donnelly, City Planning Department, reported that under Statewide Land Use Goal 5 an inventory has been mandated. Donnelly stated that field verification work is nearing completion and a technical committee will review the data and then write draft ordinances. Donnelly presented aerial maps for review and

discussion and answered Commission questions about the inventory and how it would affect Port property, specifically the Waterfront. Donnelly offered to address the Commission in another month or two to present the draft ordinances.

b) Hood River County Economic Development Committee Appointment:

Motion: Move to ratify the appointment of Commissioner Bohn to the Hood River County Economic Development Committee.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Marina Pollution Insurance: Linda Shames, accounting manager, reported that research by Scott Reynier, the Port's insurance agent, identified that marina pollution insurance coverage is not readily available, or that insured's were being required to shift all policies in order to obtain the coverage. Shames stated the Port's insurance would cover our liability and Special Districts Association of Oregon does not mandate the Port to require the insurance from our moorage tenants. Staff is recommending that all moorage tenants should still be required to provide general liability insurance but that only tenants having fuel capacity of 30 or more gallons provide the marina pollution insurance coverage.

Motion: Move to delete the provision of requiring fuel spill insurance for moorage tenants having less than 30 gallons of fuel on board their vessel.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Approval of Accounts Payable:

Motion: Move to ratify the Finance Committee's recommendation to approve the accounts payable in the total amount of $190,339.00 for bridge, property, and general liability insurance.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Airport AWOS RFP:

Motion: Move to authorize the Automated Weather Observation System engineering Scope of Work in the amount of $25,000.00.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

f) Parks & Recreation Property Donation: To avoid liability concerns, there was Commission consensus to fill a hole with soil on surplus property along the Indian Creek Trail and donate the property to the Hood River County Parks and Recreation Department.

Motion: Move to contract for free fill for Port property located along the Indian Creek Trail off Brookside Drive.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

g) Oregon Film and Video Office:

Motion: Move to authorize staff to negotiate with the movie company for rent-free use of the Western Power Building for the months of February and March for consideration of utilities payment and providing necessary insurance.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

h) Waterfront RFQ Interviews: The Real Estate Committee has recommended that the Port move ahead to schedule interviews for the Waterfront Request for Qualification respondents. Staff will contact the respondents to tentatively schedule one-hour interviews the afternoons of February 11 and February 18, 2003.

i) Informational Item: Executive Director Harlan updated the Commission on an industrial site visit south of Hood River, known as "Project Light," that would be taking place January 28, 2003.

8. EXECUTIVE SESSION: President Lyons called the Commission into Executive Session at 8:50 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 9:08 p.m. The following action was taken as a result of Executive Session.

Motion: Move to authorize a counter offer with Key Development based on renegotiating a lease with DaKine Hawaii.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

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Motion: Move to authorize staff and council to pursue the Heelside eviction and sue for damages.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

President Lyons adjourned the meeting at 9:09 p.m.