Minutes of January 20, 2004

Absent: None

Media: None

President Don Hosford called the work session to order at 5:16 p.m.

1. Executive Session: President Hosford called the Commission into Executive Session at 5:16 p.m. under ORS 192.660(1)(e) Real Estate; ORS 192.660(1)(f) Exempt Public Records; and ORS 192.660(1)(h) Litigation.

At the conclusion of Executive Session, the Commission was called back into Work Session at 6:59 p.m. No action was taken as a result of Executive Session.

President Hosford closed the work session at 6:59 p.m., and called the regular session to order at 7:10 p.m.

1. INTRODUCTIONS: Audience members Linda Maddox and Matt Kosmata introduced themselves; Susan Froehlich arrived at 7:30 p.m.

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 minutes of the December 16, 2003 work session/regular session meeting.
Move: Bohn
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS

a) Executive Director:
· Winter Weather Update: Executive Director David Harlan commended the Port maintenance department for their hard work during the two-week snowstorm the first of the month. The Port office did, however, receive complaints on the slow progress for snow removal in areas surrounding the bridge, and airport hangar tenants. Those callers were advised that resources and equipment were spread thin, and in some cases other jurisdictions were responsible for the snow removal. Harlan also reported that the local Red Cross office set up a refuge at the Expo Center for the stranded truckers while Interstate 84 was closed to traffic between Hood River and Troutdale.
· Bridge Redecking Project: Harlan reported the two-week surveying project currently underway would be completed by January 23. A project staging area has not been finalized, and Harlan reported it was unlikely that the Marina Green would be used because a larger area would be needed. The contractor is considering Lot 1 on the Waterfront because of easier access to the freeway. Other potential sites include Lot 5 (the UTS Portsite yard) and Lot 6. Harlan stated that contract language for the staging area should provide for a 30-day notice should the staging area need to be relocated. The Oregon Department of Transportation (ODOT) has apparently agreed to nighttime lane closures of short duration to allow eastbound transport of decking sections in the westbound "Exit Only" lane between Exits 63 and 64. Harlan reported the Community Relations Committee would be meeting on January 26 to discuss public outreach on the bridge project.
· Bridge Insurance: Harlan reported there would be further discussion under New Business with regard to the renewal of the bridge insurance policy. The bridge bond covenants require that adequate insurance be maintained and Harlan recommended the Commission consider approving a terrorism rider.
· Waterfront Development: Executive Director Harlan and Commission President Hosford attended the City Council's December 22, 2003 hearing to present testimony on the Waterfront zone, but the meeting was canceled due to lack of a quorum. Testimony was presented, however, on January 12 with the hearing continued to January 26. Harlan reported that the Real Estate Committee would be meeting on January 23 to discuss the Memorandum of Understanding/Development Agreement that would be negotiated with William Smith Properties, Inc. Harlan also commented that the Hood River County Parks & Recreation District had requested that the Port attend their board meeting but due to pending litigation the Parks & Rec director was advised the Port would not be attending.
· Expo-Chamber Tax Challenge: The Commission was advised the Chamber has challenged their tax assessment arguing the only square footage they should be taxed on is the upstairs office space and not the first floor conference or storage rooms.
· Port Security: A security plan has been submitted in response to Homeland Security requirements for docks providing service to ships having 150+ passengers. The Queen of the West fits into this category, as does the larger Empress of the North, which is too big to stop at the cruise ship dock. Both vessels are owned and operated by American West Steamboat Company of Seattle. Since both vessels are required to have the same itinerary, it may be that neither ship will be stopping at the Port of Hood River.
· Big 7 - Community College: Harlan reported that the Real Estate and Finance committees may need to meet to consider options regarding the cost of lease improvements because the college's proposal exceeds our budgeted dollars. Harlan also reported the U.S. Forest Service approved a grant extension for architectural and engineering services, and that additional FIPSE (Funds for the Improvement of Postsecondary Education) grant dollars may be awarded.
· Waterfront Industrial - UTS: The Commission consented to Tom Drach's request (Drox Engineering) for a $2,000 reimbursement for tenant improvements, which he would pay back through an increased lease rate over time.
· Wasco Business Park: Discussions are continuing with JAL Construction regarding liquidated damages and cost overruns. Harlan also reported that Columbia Area Transit did not receive any bids on their Request for Proposals (RFP) that closed December 31 but they are still expressing a strong interest in relocating from the Port Marina Park to Wasco. Discussions are also continuing with Humanities Software with regard to construction of a new building, and to what degree of improvements would be included in a building which would house Humanities as the anchor tenant. Harlan reported that attorney Jerry Jaques would be preparing a Memorandum of Understanding with dollar numbers based on a bid.
· Ball Janik Contract: The Port has received a request from lobbyist Ball Janik for a fee increase from $6,100 to $7,000 per month to be proportioned among the Port, City and County of Hood River. The increase will be timed with the July 1 start of the new fiscal year, as well as the effective date of Ball Janik's Intergovernmental Agreement. Information reviewing 2003 and legislative options for 2004 was provided by Ball Janik.
· Marina Planning Committee: Executive Director Harlan reported that staff would move forward again on formation of the committee in order to meet the Strategic Plan mandate and that persons having strong financial and business knowledge would be a qualifying factor.
· Miscellaneous: Harlan reported that he attended Senator Wyden's Town Hall meeting the previous Sunday, and that he would be attending Special Districts Association of Oregon and Pacific Northwest Waterways Association meetings in February. Harlan also reported that one meeting had been held with Peggy Lalor of Gorge Games. Lalor approached the Port for a fee waiver but was advised to first identify the community's support for the 2004 Games. Harlan reported the Community Relations committee is working on another Port newsletter.

b) Other -
· Real Estate Committee: Executive Director Harlan reported the committee would be meeting on January 23 in preparation for a January 30 meeting with William Smith Properties to discuss a Memorandum of Understanding/Development Agreement.
· Community Relations Committee: Harlan reported an upcoming January 26 meeting of the committee; and that staff members of the Community Relations Committee would attend a January 22 meeting of the Toll Collectors for an update on the bridge redecking project.

6. ITEMS FROM WORK SESSION:

a) Consultant Scope of Work - Contract Modification No. 4: Due to the uncertainty at this time of the Waterfront Zone passage and Memorandum of Agreement negotiations with William Smith Properties, Inc., no action was taken to approve Modification No. 4 to the Scope of Work for Richard Hill Associates. The Commission consented, however, to approve payment for work completed by the consultants for the month of January. Commissioner Streich received clarification that the Contract and Scope could be modified or terminated at any time.

7. NEW BUSINESS:

a) Bridge Insurance: Accounting Manager Linda Shames informed the Commission that the bridge insurance renewal reflected a 35% increase. Shames stated 2003 was the third year of a negotiated 3-year rate, so the Port's premium was not impacted by the events of September 11, 2001. The 2004 renewal rate includes $15,000 for terrorism coverage. Although the bridge itself may not be a high risk, it was felt that some of the dams on the Columbia River could be, which could have an impact on the bridge structure due to flooding, for example. Because the bridge bond covenants require that adequate insurance be maintained, it is staff's recommendation to the Commission that terrorism coverage be included in the one-year policy renewal.

b) Accounts Payable:

Motion: Move to approve accounts payable to Hershner & Bell for renewal of bridge insurance in the amount of $174,905; and to Special Districts of Oregon for general liability and property coverage insurance in the amount of $57,494, for a combined total of $232,399.00.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

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

Motion: Move to approve accounts payable to Ramis Crew Corrigan & Bachrach, LLP for a partial payment on the Initiative LUBA Appeal in the amount of $1,083; and to Jaques, Sharp, Sherrerd & Fitzsimons for general legal and LUBA in the amount of $8,189, for a combined total of $9,272.00.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: President Hosford called the Commission back into Executive Session at 8:15 p.m. under ORS 192.660(1)(e) Real Estate; ORS 192.660(1)(f) Exempt Public Records; and ORS 192.660(1)(h) Litigation.

At the conclusion of Executive Session, the Commission was called back into Regular Session at 8:37 p.m. No action was taken as a result of Executive Session.

9. NEXT MEETING DATE: An Executive Session special meeting of the Port of Hood River Commission will be held on January 27, 2004 at the Expo Center Conference Room. The next regular meeting of the Port of Hood River Commission will be held on February 3, 2004 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 8:39 p.m.