Minutes of November 4, 2003 Port of Hood River Commission Worksession/Regular Meeting
Expo Center Conference Room
5:45 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 Don Hosford called the work session to order at 5:45 p.m.

1. Waterfront Planning/Zone: The outcome of the Hood River City Planning Commission public hearings and deliberation process, with weekly meetings that began October 15 and continue to November 5, will be handed off to the City Council on November 10. President Hosford and Executive Director David Harlan will go before the November 10 City Council meeting to deliver the Port's message that proposals already discussed by the Port and City Council is what the Port supports relative to an economically feasible waterfront development in an all mixed-use zone. Hosford and Harlan will emphasize the Architectural Site Review Committee (ASRC), as proposed, as being the Port's public hearing process.

Executive Director Harlan reported on a visit with the Port of Everett to discuss the pre-development agreement between the Port of Everett and Maritime Trust for a mixed-use redevelopment project in Everett. The course taken by the Port of Everett is similar to the project now underway by the Port of Hood River. Harlan commented on Everett's success in maintaining control of the master planning process and avoiding developer biases by helping to bear the cost of developing the plan, which the Port of Everett will own. Harlan suggested emulating this approach as well as more up-front involvement in marketing research.

Harlan reported the Real Estate Committee had reviewed a Memorandum of Understanding drafted for William Smith Properties, Inc. (Smith) and that he did not anticipate a delay in negotiating the agreement because of the high level of confidence and trust among the principles, including Port consultants Richard Hill & Associates. Harlan stated that further discussion would take place in Executive Session. Harlan did, however, comment on the need to expand the consultant's Scope of Work to include items such as additional due diligence, organization of the Waterfront Asset Management Technical Advisory Committee (WAMTAC), market research, and moving forward with the Memorandum of Understanding. Related to the waterfront development, Harlan stated there was a need to expand the mapping database Scope of Work for Richard Leonard to include the marina, bridge, and Hood River Inn properties, and that the additional mapping should not cause the task schedule to slip.

With time to spare before the stated 7:00 p.m. start of Regular Session, Executive Director Harlan reported the bridge redecking bid in the amount of $4,918,182, submitted by Knight Construction, was rejected by the Oregon Department of Transportation (ODOT) as being non-responsive. Knight Construction had a different interpretation on the submission timeline of DBE (Disadvantages Business Enterprise) documentation. The Port has been notified by Knight Construction that they will not be appealing ODOT's decision. Christie Constructors, Inc. submitted the second lowest bid, in the amount of $6,690,696, with the difference between the two bids being in excess of $1.7 million dollars.

Commissioner Lyons asked Attorney Jerry Jaques for an interpretation of the Oregon statutes regarding actions allowed to be taken by public employees in election campaigns. Jaques commented he would like to review the statute, but his recollection was that the Port and Commission could discuss issues related to the zoning issue currently underway with the City; however, public employees could not promote specific measures or candidates on public time. Jaques stated a Commissioner, representing himself individually, could voice his personal opinion.

President Hosford closed the work session at 6:50 p.m., and called the regular session to order at 7:01 p.m.

1. INTRODUCTIONS: Audience members introduced themselves to the Commission and Port staff.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: Executive Director David Harlan requested that discussions on Wasco Business Park change orders and the designation of a Port voter for Farmers Irrigation District elections be added to the agenda under New Business. The Commission consented to the agenda additions.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Matt Kosmata thanked Port staff and Commissioners for their work in securing bridge bonds, and the Homeshield lease in the former Western Power Products building.

Linda Maddox asked Commissioner Lyons if he was the "W. W. Lyons" listed in the newspaper advertisements opposing Ballot Measures 14-15 and 14-16, saying she felt it was inappropriate for him to take a public stand. Lyons affirmed he was W. W. Lyons and that was his personal opinion. Commissioner Duckwall commented that the five elected people sitting at the table were Commissioners only when meeting for Port business. Maddox also voiced her concern with Executive Director Harlan's July 30 waterfront forum public presentation that she perceived to be against the ballot initiative. Lyons' and Maddox's engaged discussion on public employee/private citizen voting rights was called for the 5-minute time limit by President Hosford.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the October 7, 2003 work/regular session meeting.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

Commissioner Streich inquired if Commissioner Duckwall's vote should have been cast as an abstaining vote since he was absent from the October 7 meeting. It was clarified that an aye vote represented the receipt, reading and understanding of the business matters that took place.

5. REPORTS
a) Executive Director:
§ Bridge Redecking Update: Due to a bid interpretation difference involving DBE (Disadvantaged Business Enterprise) documentation, the Oregon Department of Transportation (ODOT) has rejected the apparent low bidder, Knight Construction & Supply, Inc., in favor of second lowest bidder Christie Constructors, Inc., whose bid of $6,690.696 will cost the Port in excess of $1.77 million added debt service to pay off the project, which could have been used for Toll Plaza improvements. Although ODOT has until November 21 to award the bid, a final decision is anticipated the end of this week. Harlan reported the project staging area is yet to be determined. Related bridge issues reported to the Commission by Harlan included damage to the bridge deck caused by a vehicle that lost a tire, then the wheel, and kept driving. The driver has received a bill for repairs. Harlan also reported a rollover on the Washington approach, caused by excessive speed, which resulted in the vehicle coming to a stop balanced on the guardrail. Bridge welding work by the Port maintenance crew is currently underway. Commissioner Bohn questioned if chains would be prohibited again this year on the bridge and she was advised that the ban, for heavy trucks only, is still in place.
§ Waterfront Planning Update: Harlan reported the Hood River City Planning Commission's deliberation on the public testimony was continued to November 5 with an anticipated hand-off to the City Council on November 10. Harlan commented that arrangements had been made with Hood River County Elections to obtain voter information on Ballot Initiative 14-16. Harlan stated that further waterfront discussions regarding the WAMTAC meetings, and expanded Scopes of Work would take place later in the agenda.
§ Community College Update: Harlan reported that if the issue of dedicated spaces for student parking at Sprint's Waucoma Building lot is resolved, the Port would move ahead to contract architectural and HVAC engineering work at the Big 7 Building using U.S. Forest Service grant funds. It was also reported that land use and building code issues appear to be resolvable.
§ Wasco Street Update: An ODOT agreement with the City of Hood River for use of Immediate Opportunity Funds to help finance Wasco Business Park road construction and improvements, and an associated Intergovernmental Agreement between the City and Port, are not yet in hand to act upon. Harlan reported that construction is past the completion date and JAL Construction has not requested an extension. Seaborn Engineering has submitted two Change Orders requiring Commission approval, which will be discussed under New Business. Harlan also reported that the Traffic Analysis completed by Kittelson & Associates has not been received.
§ Marina Update: Harlan reported that two boathouse floats are in need of replacement; and that a lien has been foreclosed on a sailboat and that an auction has been advertised for November 25. Harlan reported on his recommendation to the Waterfront Recreation Committee on a CPI increase in marina rates for 2004 and that the Committee requested a marina rate comparison be done. Harlan stated the comparison, along with a proposed rate increase, would be presented to the Commissioners at the November 18 meeting. Harlan reported that a car was retrieved midway between the cruise ship dock and Nichols Boat Basin late this afternoon. The accident occurred last Friday and the driver, a young girl having a driving lesson, and her stepmother were rescued from the car before it sank in the boat basin.
§ Marina Planning Committee Formation: Harlan commented he hoped the ad hoc committee, which would work with and overlap the Waterfront Recreation Committee to
study a revised Marina Plan in conjunction with the Strategic Plan, would be formed within the next month.
§ Needs and Issues: The County's Needs and Issues, including the Port's list of prioritized projects, will be discussed in a meeting scheduled for November 5. Harlan also reported that representatives of the Governor's Economic Revitalization Team (the former Community Solutions Team) would be in town on November 5 to answer questions of local government officials and staff.
§ Pacific Northwest Waterways Association: Harlan reported that he would be attending the PNWA annual meeting at Skamania Lodge November 5-8. Harlan anticipates that port security plans/assessments will be discussed and that he would have more information for the November 18 Commission meeting.
§ Miscellaneous: Harlan asked the Commission to check their calendars for any conflicts in scheduling the Strategic Planning Session the afternoon of November 18. Harlan also commented that he attended a Brownfields Conference in Portland the end of October.

b) Other -
§ Community Relations Committee: Commissioner Streich reported the committee had met two times, that a Mission Statement had been identified, and that a budget for the committee needed to be determined. Streich thanked Port staff for providing useful information stated in layman terms. Streich also informed the Commission that the committee had scheduled a Chamber of Commerce "Business After Hours" for September 2004 and that various Port tenants, past and present, would be invited to co-host the event.
§ WAMTAC: Harlan reported a second meeting had been held, and the next meeting was scheduled for early December. Harlan stated the meetings were productive and going well. Commissioner Streich commented that he had attended a meeting, representing the Community Relations Committee, but was having second thoughts about signing up for "homework assignments" because of his concern with undue influence on WAMTAC members since he was a Port Commissioner. Commissioner Bohn, also a Community Relations Committee member attending a WAMTAC meeting, had the same concern as Streich. Streich requested that staff relate his concern to the WAMTAC members via an email message stating that he was not going to participate in the homework assignments.
§ Waterfront Recreation Committee: Commissioner Bohn reported on the committee's first meeting on November 3 in which the need for RV camping facilities was discussed, along with a CPI rate increase in marina fees for 2004, and user fees for the Event Site, Hook, and Spit.
§ Airport Advisory Committee: Mike Doke reported he anticipates the Airport Master Plan to be completed in the next few months and that future projects, such as land acquisitions from willing sellers, have been discussed. Another project that will most likely be discussed in the Master Plan process is fencing of the airport property in conjunction with Homeland Security recommendations.
§ Real Estate Committee: Commissioner Lyons stated this subject was covered in the work session.

6. ITEMS FROM WORK SESSION:

a) Waterfront Consulting - Expanded Scope of Work: A proposed modification to the Waterfront project work elements, in the amount of $12,906, was held over for clarification and discussion at the November 18 meeting.

b) Waterfront Mapping - Expanded Scope of Work: At the October 7 meeting, the Commission approved a Personal Services Contract with Richard Leonard in the amount of $20,400 for waterfront mapping database services. Staff was directed at that time to discuss with Mr. Leonard the possibility of expanding the project to include the marina, bridge, and Hood River Inn holdings.

Motion: Move to approve an expanded Scope of Work for Richard Leonard for additional mapping databases services for a total amount of $25,200.00.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

7. NEW BUSINESS:

a) Wasco Business Park - Intergovernmental Agreement: No action taken.

b) Wasco Business Park - Change Orders: Two change orders for JAL Construction have been submitted by Seaborn Engineering for the addition of three gate valves (fire hydrant shutoffs), which were required by the City at the pre-construction meeting; one additional water service connection not shown on the plans; and the reconnection of Sailworks's service line that could not be performed by the City.

Motion: Move to approve Wasco Business Park Change Orders No. 1 and No. 2 to reflect a revised JAL Construction contract amount of $261,055.31 for additional gate valves, water service connection, and Sailworks's service line reconnection.
Move: Lyons
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) HNTB Construction Engineering Services - Supplemental Agreement No. 8: An additional part of the bridge redeck project construction management services is engineering services to cover the cost of items such as conducting pre-construction meetings, approving submittals, reviewing and recommending change orders, and supervision of the Construction Manager. Executive Director Harlan recommended approval of the agreement in an amount not to exceed $139,449.00.

Motion: Move to approve HNTB Supplemental Agreement No. 8, in an amount not to exceed $139,449.00, for engineering services during the bridge redecking project.
Move: Bohn
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) Farmers Irrigation District Elections: Executive Director Harlan reported Farmers Irrigation District requires that a voter representing the Port be designated, and that the Executive Director has been that designee in the past.

Motion: Move to appoint Executive Director David Harlan as the Port's designated voter in future Farmers Irrigation District elections.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Approval of Accounts Payable: Surveying and staking services for the Wasco Street Business Park and utilities has been submitted for payment by Terra Surveying.

Motion: Move to approve Accounts Payable, in the amount of $6,529.50, to Terra Surveying for surveying and staking for Wasco Street and utilities.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:00 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 8:40 p.m. No action was taken as a result of Executive Session.

9. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on November 18, 2003 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 8:41 p.m.

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Minutes of November 18, 2003 Port of Hood River Commission Work Session/
Regular Meeting
Gorge Networks Conference Room, Big 7 Building, 616 Industrial
1:00 P.M.

Present: Commissioners Don Hosford, Sherry Bohn, Fred Duckwall (2:15 p.m.), Bill Lyons, and Hoby Streich; Attorney Jerry Jaques; from staff, David Harlan, Mike Doke, Linda Hull, and Linda Shames; Others: Linda Maddox, Walter Burkhardt, Matt Kosmata (work session), and Ann Frodel, Maui Meyer, Brian Robb, Susan Froehlich (regular).

Absent: None

Media: RaeLynn Ricarte, Hood River News

President Don Hosford called the work session to order at 1:20 p.m. for the purpose of the semi-annual Fall Strategic Planning discussion. The public attendees introduced themselves.

1. INTRODUCTION AND OVERVIEW:
Executive Director Harlan explained the fall planning session is the time for reviewing Port asset performance. Harlan said it is also a time to review where we are at-and where we are going-with the waterfront and what that means in terms of our strategic direction and our other operations. He also distributed a GANTT chart showing his use of time over the next few months and that the lull in the waterfront project may impact other areas. The Commission agreed to move up the Executive Session on the agenda to immediately follow the work session.

2. ASSET PERFORMANCE/ROI/FISCAL POLICIES:
Executive Director Harlan reviewed the Return on Investment (ROI) and capital budget spreadsheets that Linda Shames prepared for the fiscal year ending June 30, 2003. As in prior years, there are too many subsidized areas; the only positive ROI cost centers were the Bridge and Diamond Industrial. We are still not meeting the requirements of the Strategic Plan as the bridge is subsidizing the others. Harlan stated the Marina area is a good example, with the Marina Green and new restrooms creating expenses with no corresponding fees or revenues attached. Commissioner Lyons stated the strategic plan addresses cost centers as a whole and that some areas within a cost center do not have a means to generate income, but that the strategic plan looks at the whole asset cost center over the long term. Shames stated if the asset's ROI was 4%, improvements could be made over time.

Some investment dollar figures are not the expenditure of the Port's, as in the example of the former Kearney Western building built by K-W but turned over to the Port upon vacating as per the terms of the lease. But it is important to recognize the asset's cost basis. Lyons stated that lack of revenue is still the bottom line issue and the figure is $1.2 million to be revenue neutral on all Port assets.

Commissioner Streich asked if bridge receipts were keeping pace with prior years and Shames said yes. She has calculated the financial impact of the bridge closure during redecking by factoring in nighttime traffic counts. She said the AWOS system at the airport would increase maintenance costs there. Shames said other than over-length vehicles rates, the Event Site hasn't had an increase in user fees and because of higher minimum wage, new restrooms, and higher garbage and water rates, that needs to be addressed. Shames also explained that the bridge bond covenants has restrictions to be aware of that are attached to all Port assets, but that undeveloped property can be designated as separate facilities, if need be.

3. ASSET MANAGEMENT:
Waterfront Development: Harlan stated Smith Properties is waiting to see how the zoning issue will be resolved realizing that public entities have to work within the legal framework. The legal issues of the initiative will be discussed in executive session but many unanswered questions exist that impact Port planning. What does the City mean by referring the zone back to staff and what do they mean by saying we can get a zone? Lyons asked can we get a workable zone, a zone that Smith can work with? Harlan stated the waterfront is our current key strategic asset and we've spent over $1 million pursuing a zone change with little to show for it. Would we sell the land for a park and under what terms and conditions? Incremental development approaches take park and other amenities out of the equation for ROI. If the zone change doesn't happen, Smith probably goes away and we need to think about the direction we take then. One of the first things now would be to complete a market analysis of the land to calculate its value. The professional services budget for waterfront development is reaching the maximum amount. Hill & Associates have a revised scope of work that needs to be reviewed and may possibly change. The mapping database is nearing completion and there will be additional legal fees now. Transportation issues remain with 2nd Street construction on hold, consideration of a new bridge over the Hood River, and the Kittleson study Harlan sees problems with. If the current discussions regarding rezoning the waterfront break down, the waterfront could go in several different directions at that point. The Port can 1) land bank the property and pursue other priorities; 2) move ahead with light industrial development because it's essentially ready-to-go; or 3) move ahead with interim uses while pursuing other priorities.

Bridge:
Christie Constructors Inc. was given a notice of intent to award the bid for approximately $6.6 million. The project staging area has yet to be determined; the contractor may have financial concerns for either side of the river. The Commission may want to appoint an ad hoc bridge committee for communicating concerns.

Waterfront Recreational:
The Waterfront Recreation Committee (WRC) recommended a fee increase for the Event Site, and fees for the Spit and Hook next season. The committee also felt an RV facility would be welcomed on the waterfront.
Marina Park: Restoration of the Marina Park beach was discussed. The shoaling of the Hood River is not a new problem. Permits are harder to get for in-water work and projects requiring these kinds of permits can be costly. The Event Site beach cost $500,000 to build in 1992. Harlan will continue to explore the options to restore the beach for windsurfing. The commercial buildings and marina are generating positive cash flow; the marina green and restrooms are subsidized because of no user fees. The Waterfront Recreation Committee asked that a comparative study of comparable marinas be made before raising moorage rates. Harlan felt an increase of 4% would be reasonable and justified by the study. Harlan discussed the formation of an ad hoc Marina Planning Committee to revise the Marina Plan, identifying both improvements and revenue sources derived from the property to pay for those improvements and ongoing operational costs. Development in the Marina Park is complicated by the advisory vote that called for only recreation-related development in that area.
Spit: Implementing user fees at the Spit was recommended by the WRC. It was felt that it would help control access by non-kiteboarders and the overcrowding problem. Not much can be done in improvements, however, because of the environmental restrictions. Because of safety issues associated with kiteboarding, the area can be used only by a single user group.
Event Site: Increase in fees were recommended by the WRC. Extension of the beach here has the same problems as the Marina Beach. We now have a "Wind Shadow" issue to address as well. Day camping at the Event Site was addressed this year with increased fees; an RV facility may be considered as an interim use of the waterfront area. Studies are showing a general decrease in windsurfing world-wide and a growth in paddle sports, which the Port may want to consider in its planning.
Hook: Implementing user fees at the Hook was recommended by the WRC. There have been more users here than the Marina Beach, but making improvements near the water is always problematic and costly. More portable toilets can be provided. A park on Lot 7 would incorporate a public restroom for that area.
Cruiseship Dock: Revenue covers operations, but not capital improvements. Activity has been down since 9-11 and the sandbar has created depth problems for some vessels. Captains prefer a dock parallel to the river because of the wind. New homeland security requirements could mean further restrictions on access to the dock and potentially impact activity at the Event Site and Spit.
Commissioner Bohn stated that the WRC members agree that people "pay to play" everywhere; people know they have to pay access fees for using improved sites.

Expo Center:
Facility continues to be subsidized by the bridge revenues. Efforts to secure federal funds to convert it to a Technology Center have been unsuccessful. Other communities have transient room taxes that help pay for an exhibit hall like this one. There are firms interested in converting it, however, to light industrial corporate office space. Commissioner Duckwall stated a market analysis would provide good information when discussing potential other uses. Relocating the Chamber/Visitors Center is an issue.

Big 7 Building/Technology Center:
The community college is submitting the conditional use permit to locate in the Big 7 Building and has submitted a commitment letter to the Port. In the meantime, the grants for equipment and improvements can be utilized pending approval. Parking is a big issue and the college is working with Sprint to obtain some of the spaces in the Waucoma Building lot. Parking may be potentially an urban renewal project. An Intergovernmental Agreement will specify who owns what equipment and where it can be located as well as who pays for the improvements. A lease is under review by Jerry Jaques.

Waterfront Industrial:
Homeshield is operating and more tenants for UTS have been secured for 2004. The waste water treatment plant odor solution needs to be prioritized for 2004 if development of the area is to happen.

Wasco Business Park:
The Port is still waiting for the City to finalize an Intergovernmental Agreement for the Immediate Opportunity Funds to pay for the road. The Real Estate Committee will be reviewing CAT's letter proposal to purchase land. The Post Office is soliciting RFPs for land and the Port will respond. This land is high cost industrial within the City.

John Weber Industrial Park:
This is the only competitive land the Port owns and has four small lots left to develop.

Other Industrial:
The Port's Strategic Plan calls for the identification and acquisition of additional industrial lands consistent with Hood River County Economic Development Action Plan. This is a critical strategic issue for the Port and would make it easier for the Port and community to retain businesses and attract others. Industrial land in the county is all privately owned at this time. The Odell Sanitary District has potential for federal lobbying activity if increasing capacity to industrial developments.

Ken Jernstedt Airfield:
Increasing hangar rates by 3% for 2004 was discussed. The Master Plan is nearing completion. The Port has a willing seller east of the runway, which would expand the runway zone and would be eligible for 90% FAA grant funding. The airport development zone restrictions are a continuing issue for development at that site.

4. FEDERAL FUNDING PRIORITIES/FIVE-YEAR CAPITAL PLAN:
Harlan will be meeting with Hal Hiemstra next month regarding future federal funding. Projects that will be discussed include transportation, waterfront infrastructure, waterfront beach repair funding, industrial park acquisition and development, and the Odell Sanitary District capacity. Commissioner Lyons stated the National Scenic Act should have $1.8 million to release for recreation and we should get on the priority list for waterfront development.

President Hosford closed the work session at 3:45 p.m. and opened the executive session after a short break. At the conclusion of Executive Session, President Hosford called the Commission back into regular session at 5:40 p.m. Action was taken as a result of Executive Session and is reflected in Waterfront Professional Services below.

5. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the November 4, 2003 work session/regular session meeting.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Streich, Lyons, Hosford
MOTION CARRIED

6. REPORTS:

Executive Director: Executive Director Harlan briefly stated the waterfront development was discussed at length in the work session. The bridge redecking project was awarded to Christie Constructors of California. Harlan would like to establish ad hoc committees to address the bridge redecking public relations and the Marina Plan revisions. The marina and moorage increase in rates are needed to keep up with inflation and get more to market rates of similar facilities. The community college wishes to locate to Big 7, in the area outside the conference room, for job training and a technology center. Wasco Business Park infrastructure is almost finished with two potential tenants in negotiations.

Other: Commissioner Lyons informed the Commission that the Hood River County Needs & Issues are not finalized as of this date. The Port has five projects on the list, but this year all the county projects are not being prioritized, only listed. Harlan reported the Waterfront Asset Management Technical Advisory Committee will meet next on December 11 at the Hood River County Library. The participants have been assigned 'homework' to bring back any information regarding what would work here in Hood River to be a successful development.

7. ITEMS FROM WORK SESSION:

Waterfront Professional Services: The Commission discussed the need for additional budget funds for legal fees and for consultants. The Finance Committee will review the estimates from legal counsel and the expanded scope of work from Hill & Associates prior to the December 2 regular meeting.

Motion: Move to file appeal with LUBA regarding the waterfront park initiative and authorize Jerry Jaques to associate with Tim Ramis of Ramis, Crew, Corrigan & Bachrach, LLP.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Lyons, Hosford and Streich
MOTION CARRIED

Commissioner Duckwall stated the Port and the City need legal clarity on this measure and this is the most expeditious way to do it. Commissioner Bohn stated the public should understand that this action is not adversarial and that the Port will continue to work with the City on getting a zone that the Port Commission can support.

8. NEW BUSINESS:

a) Marina Moorage Rate Recommendation: Harlan explained that the Waterfront Recreation Committee asked staff to do a comparative study of the marina rates of comparable facilities. Based on that study, Harlan is recommending a rate increase of 4%. Transient dock fees will be addressed in the spring. Commissioner Bohn also asked if further study could be made regarding differential rates for in-district and out-of-district tenants.

Motion: Move to direct staff to increase the 2004 moorage rates across the board (except the transient dock) by 4%, effective January 1, 2004.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Lyons, Hosford and Streich
MOTION CARRIED

Airport Hangar Rate Recommendation: Mike Doke told the Commission that last year's increase was 10%. Staff is recommending a 3% increase this year, which is still below that of other comparable airports.

Motion: Move to increase hangar rates by 3% for 2004, effective January 1, 2004.
Move: Streich
Second: Lyons
Vote: Aye: Bohn, Duckwall, Lyons, Hosford and Streich
MOTION CARRIED

c) Ad Hoc Committee Recommendation: Harlan said it will be a challenging task for the Marina Planning Committee to revise the plan in keeping with our Strategic Plan to identify both improvements and revenue sources derived from the property to pay for those improvements and ongoing operational costs. Harlan would like to have a 7-person committee made up of various marina users and businesses. The Commission felt the advertisement/press release for the Marina Planning Committee should succinctly state its mission. The Commission discussed the purpose of a bridge committee and decided that it could be incorporated into the Community Relations Committee. Commissioner Streich felt that the issue is one of communications and awareness and that the Community Relations Committee is currently developing a strategy to address that.

Motion: Move to authorize staff to advertise for applications for an ad hoc Marina Planning Committee.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Lyons, Hosford and Streich
MOTION CARRIED

d) Accounts Payable: None

9. EXECUTIVE SESSION: Moved to immediately follow work session; see above.

10. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on Tuesday, December 2, 2003 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 6:05 p.m.

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Waterfront Recreation Committee
Minutes
November 3, 2003
Expo Center Conference Room

Attending: Members Steve Gates, Richard Sassara, Michael Schock, Dennis Shypertt, Lori Stirn and Commissioners Hoby Streich and Sherry Bohn. Staff Members: Dave Harlan, Mike Doke, and Linda Hull. Absent: Member Ann Frodel

1) Sherry Bohn opened the meeting at 3:00 p.m.

2) Committee Role and Policy Context: Dave Harlan stated the committee's role is to help staff resolve waterfront recreational issues that periodically arise as part of its function. Members will also be asked to provide feedback to the Port Commission on rates, regulations and other policy decisions. Sherry Bohn said the ad hoc Waterfront RV committee last summer was helpful to the Commission on that issue.

Harlan asked the committee to keep in mind that the Port's Strategic Plan and 5-Year Capital Plan, which govern Port planning, are reviewed and updated annually. It is posted on the www.portofhoodriver.com website for anyone to review. The financial management goal in the Strategic Plan is to have all assets be financially self-supporting, decreasing subsidization from bridge revenues. Therefore, ideas for improvements to recreational areas, which are currently being subsidized, need to have associated strategies for payment of the costs. What the committee will not be doing is creating unrealistic improvement plans without consideration of the requirements of the Strategic Plan or 5-Year Capital Budget.

The other guidance document is Ordinance 22 (also on the website), which regulates conduct on Port property; its enforcement is through the City of Hood River Police Department. However, no citations have been issued under that ordinance.

Lori asked if the charge of the committee is to find revenue sources? She said in Ashland, for example, a certain percentage of food and beverage income goes toward parks and recreation. Hood River Parks & Recreation has development fees to create parks but it doesn't cover operations and maintenance. Harlan said the user rates for Port properties are set by the Commission, but they will consider additional input from various citizen committees. Harlan stated the committee would evaluate fees/rates for all recreational asset areas.

Harlan also told the committee the Commission requested a revised Marina Plan this year and it is to include revenue assessments in any plan. An ad hoc committee will be appointed soon to work on that project and the Waterfront Recreation Committee will have input as well. Also a consideration is the advisory vote several years ago that marina park area development can only be recreational.

3) Season Overview: Harlan explained that the shoaling of the river around the Marina Beach and the Spit has created a potentially costly problem on the waterfront. Between the low water levels and the glacier slide along Highway 35, the sand is continually shifting and reforming all around the area. If the Army Corps of Engineers did permit the work, it's possible that the next high water would move it all again. Harlan will be researching WRDA (Water Resources Development Act) appropriations for assistance as well as the Army Corps of Engineers to see what can be done to restore the windsurfing beach area. According to Harlan, it's very difficult to obtain permits to work around the water today and heavy penalties are assessed if any unauthorized work is done. He also said vandalism of the new restrooms added costs this year and closed the facilities for a time for extensive plumbing repairs.

Harlan said the Marina slips were full with a waiting list for the summer. The current CPI-adjusted rates cover operations, but not any repairs or capital projects. The dock floats are deteriorating and need replacement and is an expensive project. Rates now are lower than The Dalles or Cascade Locks. Lori Stirn asked if the Port would consider a Port District rate separate from a non-Port District rate similar to Park Districts.

The Spit, according to Harlan, saw increased use this year increasing the hazards to windsurfers and marina beach users who walk out to the Spit on the shallow sandbar. No user fees were charged this year, but the Commission is interested in reviewing that this next season. The user fee may be a way to manage the overcrowding and diminish the hazards. There is a limit to what improvements can be done on the Spit due to environmental requirements.

The cruisedock activity has decreased over the past three years, partly due to the economy affecting tourism so there are less bookings. Dockage fees cover the operating costs of the dock but nothing more for improvements. Captains do not like the dock placement, preferring to be parallel to the waterfront because of the winds as well as the hazards of maneuvering through windsurfers and kiteboarders. The Port has restricted access to the dock because of hazards and security. New security requirements will have to be implemented to continue to receive ships with over 150 passengers (Queen of the West).

The Event Site use did not increase this year. The cruisedock and Event Site were subsidized by about $42,000. Vandalism at the restrooms and dogs running at large were continuing problems. The Port had complaints that the restrooms weren't open on weekends before and after the season (May 15 to September 15). To keep them open means more labor costs for cleaning and stocking. The Commission contemplated RV overnight parking last season but delayed action until further study. This committee may want to discuss that issue because there is a demonstrated need for this type of facility in Hood River.

The Hook had no improvements this year other than partnering with CGWA to plant trees around the windsurfing schools, so the Commission did not consider user fees. The road is graded annually and portable toilets are provided. Michael Schock asked if portable toilets could be placed on the eastern part of the Hook for those launching there? Steve Gates thought that user fees might be considered for next year because the area gets a lot of use, especially with the Marina beach condition. If the Port could bolster its revenue stream then more improvements could be made, including additional grading of the road. Harlan said the waterfront redevelopment included proposed funding mechanisms to improve the Hook and creating additional park space at the east end on Lot 7. Gates said if there was an "honor" pay system it would be less labor intensive. Harlan said the experience with honor pay systems at the Event Site was that about 50% paid. Sherry Bohn wondered about a season pass to cover the Hook, Spit, and Event Site and if vehicles didn't have one they could be ticketed with the ticket price applied to the pass cost. Gates said today's reality is that people "pay to play". Harlan said this suggestion would go to the Commission for discussion and policy-making.

4) Marina Park: Lori Stirn asked if there were concerns about the liability to the Port because of the shoaling creating hazardous swimming areas, and there are concerns according to Harlan. She asked if the Port could take a proactive stance and approach the Army Corps of Engineers from this perspective to get the problem worked on by them. Harlan will be attending a conference this week and will have an opportunity to discuss the issue with them and also to find out about the status of WRDA.

Jim Bison stated the marina beach is upwind for kiteboarders and sometimes they get hung up on the bridge and piers. The sandbar joins the Spit area through shallow waters and many people walk over and get in the way of kiteboarding. That situation as well as the Hood River's swift current has created hazards for users of the marina beach. Harlan said there are no easy answers to the shoaling problem; there are signs posted in the area warning of the dangers. A lot depends of nature, weather, water flow, and glacial slides that the Port cannot control. Sherry Bohn asked about checking with the Corps to see how long it would take to get permits for a pipeline dredge that could scoop the sand and move it to another place and if it had any value to use or sell. Permitting is done in "water windows" for torpidity and fish concerns. Jim Bison said the Port of Kalama has a portable pipeline dredge that may be able to help as a resource.

Marina rate increases are usually based on the CPI (Consumer Price Index) rate. The Commission will be looking at an increase for 2004 during strategic planning. Sherry Bohn and Steve Gates asked if comparative rates from other similar marinas (both public and private) and amenities could be researched to guide the Commission's decision on 11/18 to increase marina rates. Lori Stirn said it helps if people understand the associated costs to operate a facility and the increases are implemented gradually.

Steve Gates made a motion, Richard Sassara seconded, that a comparative rate study be done on public and private marinas similar to the Port's in amenities and used in considering a marina rate increase for 2004. Gates requested that all future recommendations to the Commission be in the form of a motion.

Harlan said the Marina Green might potentially be used for a staging area for the bridge redecking project for a 2-year period. More information on that will come from the contractor once the bid is awarded later this month. Michael Schock asked about any plan to connect the waterfront redevelopment area with the marina green and being able to use the resources. Harlan said right now each area has one access point; the developer has talked about an auto bridge over the Hood River to connect the areas for another access point. Options for resources are all unanswered at this point. Michael wondered if an objective of this committee could be to think of how to work it out and propose resources.

5) The Spit: Because of the limited area, early in the season Mike Doke felt that it was a management headache with all the instructors, schools, and parking issues. He said three years ago there was one certified school; this past summer there were six. But as the season progressed, the schools worked out their issues together. Jim and Cori Bison said the wind is better in Stevenson and they are improving their site; however, because of the shallow water and sandbar, Hood River is the best place to teach. Lori Stirn asked about the number of people participating and is anyone tracking that? Jim said no, but maybe they could track it through sales. Mike Doke said it would be really helpful to the sport itself if the Gorge Kiteboarding Association could get better organized and/or join with CGWA to address issues, numbers, etc. Bison stated the rogue instructors are still out there but it is tiring to keep chasing them down and they were all so busy that they just let it go. He suggested that all certified school instructors be differentiated from the rogues by wearing something that identified them as certified (color of shirt, etc.). Also, implementing a protocol to follow for reporting those people would be helpful. The Port has kept the school concession low for three years because it was a new business; this year the concession fees may be restructured similar to the windsurfing schools. Bison also said the overcrowding is a problem in the sport and there are not enough facilities. User fees were discussed with the suggestion that a daily fee for the Spit and the Hook could be $2 (being unimproved) with a season pass that would cover all Port sites.

6) Event Site: Harlan said one issue each year is the damage events cause when their people drive tent and fence stakes into irrigation. Suggestions were to charge a damage deposit up front; to draw/paint lines on the ground to show where irrigation lies; or to have tents in the parking lot.

7) RV Facilities: The RV day-camping issue was discussed. Harlan said the maintenance crew takes out six 55-gallon barrels of garbage twice a day at the Event Site. The fee for overlength vehicles is $10 daily and $100 annually. The water access had to be locked up because they were filling their RVs tanks. There appears to be a need for a facility on the waterfront for these types of recreationalists in RVs, and may be a possibility in the interim during waterfront development. Lori Stirn said the Boardman 60-unit RV park is 98% full all summer and asked if this idea was in the Strategic Plan for the future. Harlan said not yet, and no specific place has been identified. Steve Gates wondered how big of an area would be needed for a 20-unit facility to start; there seems to be a big need here.

User fees of all the areas were discussed. The current fees are $3 daily, $50 season pass at the Event Site with no charge at the Hook or the Spit. It was felt that $4 at the Event Site, $2 at the Hook and the Spit would be a reasonable daily fee. Using an honor system vs. a person to collect the fee will have to be determined.

Steve Gates made a motion for the committee to endorse an increase to user fees at the Event Site and implement user fees at the Hook and the Spit and to incorporate the season pass at all three sites, possibly adding a season pass at the Hook and the Spit only for $30. For these fees, users will benefit from extra road grading, additional portable toilets, etc.

8) Next Meeting: Monday, January 5, 2004, 3:00 p.m. Expo Center Conference Room