Minutes of June 1, 2004 Port of Hood River Commission Regular Meeting
Expo Center Conference Room
7:00 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 Shames, Linda Hull, and Laurie Borton

Absent: None

Media: None

President Hosford simultaneously opened the budget hearing and regular session at 7:00 p.m., stating the budget hearing would remain open for a period of time to allow for public comment.

1. INTRODUCTIONS: Bob Francis and Linda Maddox introduced themselves and were welcomed to the meeting by President Hosford. Susan Froehlich arrived after introductions were made.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: President Hosford reported that 2004-2005 officers would be elected the first meeting in July so the Commissioners needed to start thinking about nominations. Hosford also requested discussions on a written request for buoy moorage, the waterfront conceptual park plan, and Hood River Distillers property development concerns. Executive Director David Harlan stated these items would be addressed in Reports, and that he also expected action would be taken as a result of Executive Session.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the May 18, 2004 regular session meeting minutes.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS:

a) Executive Director:
· Bridge Update: Executive Director David Harlan reported that tonight, June 1, and June 2 and 3 would be first nighttime closures of the bridge. No nighttime closures are scheduled for next week, but the closure schedule is expected to resume June 13. Harlan reported the north liftspan lock gearbox failure would be inspected during the nighttime closure to determine what repairs would be required; in the meantime the U.S. Coast Guard has a river traffic height restriction posted. HNTB, the Port's bridge engineering firm, has begun a study on the feasibility of the Port constructing a new crossing. Harlan also reported there may be traffic management issues to discuss with the Washington State Department of Transportation (WSDOT) relative to the state's installation of a traffic signal at the intersection of State Highway 14 and the Washington entrance onto the Interstate Bridge.

· Waterfront Update: Harlan announced the Oregon Land Use Board of Appeals (LUBA) decision to overturn Measure 14-16. The November 2003 ballot initiative would have made it City policy to preserve a portion of the City's Columbia River waterfront for public park purposes. Harlan reported that he and Richard Hill Associates had compared budget proposals and interviewed the two respondents for a market analysis. E.D. Hovee & Company, and Johnson Gardner were equally qualified; however, Harlan was recommending the Commission take action to approve a Scope of Work for E.D.Hovee because the firm was in a position to start work immediately on an analysis. Harlan reported on a meeting in which the City agreed that privy waste would not be accepted at the wastewater treatment plant for a period of two months beginning July 1 in an effort to determine if the privy waste was the source of the odor problem. Harlan also met with the City to discuss the Goal 5 riparian inventory and the status of the City's June 30 reporting deadline. The Port is in receipt of the City's draft Intergovernmental Agreement which indicates the Port, and not the City, would take the lead in operating and maintaining a Waterfront Park. Harlan commented that it was not his understanding the Port would operate and maintain the park, to which City Manager Bob Francis responded he would be discussing the issue with the Hood River Valley Parks and Recreation District. Harlan also reported that he and Francis would meet to discuss the need for an industrial lands inventory Intergovernmental Agreement (IGA) relative to Goal 9. Harlan also reported on a meeting with Ron Dodge who is concerned with the type of future development adjoining the Hood River Distillers property. The Commission recommended that Harlan meet again with Dodge to propose a binding agreement between the Port and Hood River Distillers regarding the type(s) of allowed uses. Harlan reported he would be attending the June 2 Planning Commission hearing to present the Port's testimony on the waterfront draft zoning ordinance, and that Ball Janik LLP's testimony would be representing Bill Smith and William Smith Properties. Harlan also reported that William Smith Properties intends to move forward with a Development Agreement with the Port, with a target completion date of this fall, and it would be his recommendation the Commission authorize a contract extension date with Richard Hill Associates. Harlan stated additional funds would not be required with the contract date extension.
· Big 7/College Update: Harlan reported that the NoaNet fiber run from Sprint's central office to the Big 7 Building has been completed, however, the connection has not been turned on. Harlan stated action would be considered under New Business on the tenant improvement bid award, Oregon Investment Board grant application, and college lease and intergovernmental agreement.
· Wasco Business Park Update: Bidding on construction of a tenant building will be delayed approximately one week while the architect reviews plans to reduce square footage in an effort to trim building costs to meet Humanities cost target.
· Marina Park Events: No report.
· Waterfront Recreational: A request for buoy moorage in the marina has been received from the owner of a 32-foot boat who is currently on the "long boat slip" waiting list. Staff will be responding that because of space constraints it will not be feasible to accommodate his request because the channel needs to remain open for boat and floatplane access, as well as boat launch ramp traffic, and access to the visitor transient and north overflow docks.
· Airport: Harlan reported that a property appraisal would be discussed during Executive Session.
· Other: The Commission was asked to begin thinking about election of officers the first meeting in July. Harlan reported the Commission may need to consider, at a later date, taking formal action on the dissolution of the Oregon Public Ports Association. Harlan stated he would be meeting with Hood River Valley Parks and Recreation director Lori Stirn the second week in June to discuss the donation of surplus Port property to Parks and Rec for their Indian Creek Trail project.

b) Other:
· Real Estate Committee: ANPC is looking for additional office space and approached the Port about the Wasco Business Park. The airport had been suggested as an alternate location because they're an airport-related business but ANPC responded they preferred to be closer to town. The Postal Service is still very interested in acquiring property at the Wasco Business Park and indicated a letter would be mailed this week. Homeshield's expansion needs keep accelerating forward and the Port anticipates it may need to play a role in facilitating a property acquisition, as appropriate, in the next three to four months.
· Conceptual Park Plan: President Hosford lead the Commission into a lengthy discussion on the Paul Thompson/Carl Perron Architect conceptual waterfront park plan that City Councilor Thompson presented to the Port Commission at the May 18 meeting. Hosford stated the Commission needed to take a position on the plan, and Executive Director Harlan reported the plan would be addressed in his testimony to the City Planning Commission at the June 2 public hearing. City Manager Bob Francis stated if the Planning Commission was in favor of Thompson's conceptual plan then the windshadow language in the recent renditions of the draft ordinance would be eliminated. There was Commission consensus that the testimony recognize a park will be located somewhere on the waterfront, that the Port will work cooperatively with the City, and that a compromise needs to be reached allowing development of the Port's riverfront property as the basis for a waterfront attractor and amenities.

President Hosford interrupted the Regular Session at 8:05 p.m. to go back into the Budget Hearing. No public comments on the 2004-2005 budget were offered.

Motion: Move to close the 2004-2005 Budget Hearing
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

President Hosford closed the Budget Hearing and called the Commission back into Regular Session at 8:06 p.m.

6. ITEMS FROM WORK SESSION: None.

7. NEW BUSINESS:

a) Big 7 Tenant Improvement Project Bid Award: Mike Doke, Economic Development and Marketing, reported that while June 4 is the 30-day deadline to award the tenant improvement project, low-bidder Betz Construction, Inc. has indicated they are flexible and willing to extend their bid bond. Doke reported that Betz Construction and Carl Perron Architect had been negotiating project deductions and that the base bid of $299,308 had been reduced to a budget of $281,808.00. Doke further explained that the June 4 extension may be necessary due to last minute changes to the draft lease agreement submitted by the attorney for Columbia Gorge Community College (CGCC), and the ambiguity of whether or not Dr. Frank Toda, CGCC President had the authority to sign the Lease and Intergovernmental Agreement documents without further review by the Board of Directors of the college. (The IGA clarifies the project obligations between the Port and College.) A new "Lessor's Improvements to the Leased Premises" clause received today from the College included verbiage to the effect that the lease amount would be pro-rated from the date of occupancy if the targeted August 1 possession date slipped. The Commission and Attorney Jerry Jaques indicated the lease could be modified adding language addressing a lease payment pro-rated to a possession date; however, what was not acceptable was the language that the College had the option to terminate the lease and demand immediate reimbursement of funds contributed to the improvement project if the space was not available for occupancy by September 1. The Lease currently addresses custodial services, as requested by the College, and the added cost per square footage was factored into the stepped lease rate over a three-year period. Doke reporting receiving today a detailed janitorial request that would far exceed the 2-cent per square footage addition to the monthly lease rate. Accounting Manager Linda Shames commented that all the delays could critically affect the construction period and possession date.
A New Business agenda item directly related to the Big 7 Tenant Improvement Project and space to be leased by Columbia Gorge Community College was an Oregon Investment Board (OIB) application for grants funding. The Port was encouraged by the Mid-Columbia Economic Development District to be the applicant for the OIB grant instead of the College because the funds would be used for improvements in a Port-owned building, and the College had been to the OIB many more times than the Port. In order to meet an OIB deadline, the Port did submit the application and Commission ratification is required.

The Commission consented to addressing the Big 7 Building/Columbia Gorge Community College New Business agenda items in the following order:

Motion: Move to approve the Lease between the Port of Hood River and Columbia Gorge Community College for space in the Big 7 Building without the "Lessor's Improvements to the Lease Premises" verbiage added by the College.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
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Motion: Move to add a separate maintenance provision, to be negotiated on an annual basis, to the Columbia Gorge Community College Lease in the Big 7 Building.
Move: Bohn
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
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Motion: Move to award the Big 7 Building Third Floor Tenant Improvement bid to Betz Construction, Inc., in the amount of $281,808.00 contingent upon the Intergovernmental Agreement and Lease being signed by Columbia Gorge Community College.
Move: Lyons
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
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Motion: Move to approve the Intergovernmental Agreement between the Port of Hood River and Columbia Gorge Community College.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED
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Motion: Move to ratify the action of the Executive Director with respect to the Port filing as the applicant for an Oregon Investment Board grant for Big 7 Building tenant improvement funds.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) Consultant Contract Term Modification:

Motion: Move to extend the Richard Hill Associates contract date from June 30 to August 31, 2004.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

f) Waterfront Market Analysis Contract:

Motion: Move to approve the Agreement for Professional Services with E.D. Hovee & Company to prepare a waterfront real estate market assessment in an amount not to exceed $29,500.00.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

g) Approval of Accounts Payable: None.

8. EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 8:43 p.m. under ORS 192.660(1)(e) Real Property. At the conclusion of Executive Session, the Commission was called back into Regular Session at 9:15 p.m. and the following action was taken as a result of Executive Session.

Motion: Move to authorize Integra Realty Resources to prepare a valuation report, in an amount not to exceed $12,000.00, of the Port of Hood River's waterfront properties.
Move: Duckwall
Second: Lyons
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 Tuesday, June 15, 2004 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 9:17 p.m.

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

Absent: None

Media: None

President Don Hosford called the Commission into work session at 6:30 p.m.

President Hosford reported that he and Commissioner Lyons met with Linda Rouches, Hood River City Council President, who had invited Hood River City Planning Commission Chair Jurgen Hess, to discuss common grounds on Ordinance No. 1851. Lyons stated that he had drafted a Resolution in response to Rouches's comment that the Council did not know what the Port wanted. Lyons commented the development of a 6-acre waterfront park was a given, and that once a park was in place, further waterfront development should evolve. Lyons stated the Resolution would have tie-ins to various aspects of Ordinance 1851 and an Intergovernmental Agreement (IGA) between the City and Port addressing the location of a waterfront park; timelines and funding sources; and design, construction and maintenance issues. Lyons also suggested that if the property north of Portway Avenue were to remain zoned as light industrial until the park was in place, and if all the provisions of an IGA were met, then there might be the possibility that the Port could consider donating land for the park to the City and forego pursuing legal action against the City on a "takings."

Executive Director David Harlan commented that the Port and City's involvement needed to be balanced and performance-based. President Hosford then asked for comments from the Commissioners. Commissioner Bohn stated the Resolution was important; that the Port could not continue to send a mixed voice to the community; and the Commission needed to work hard to see that the Resolution got done to avoid the public's perception of "another ploy." Commissioner Streich commented on the need for the Commission and Council to work more closely and listen to public input. Commissioner Duckwall stated the Resolution should clearly state our preferences so there is no room for misunderstanding or misinterpretations.

President Hosford directed Commissioner Lyons to refine the drafted Resolution for Commission review at the next regular meeting on July 6.

President Hosford closed the work session at 7:10 p.m. and called the regular session to order at 7:15 p.m.

1. INTRODUCTIONS: Linda Maddox, Bob Francis, Jurgen Hess, and Mike Benedict introduced themselves and were welcomed to the meeting by President Hosford. Susan Froehlich arrived after introductions were made.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: President Hosford added a discussion on election of 2004-2005 officers under Reports-Other.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: Bob Francis, Hood River City Manager, announced that personal scheduling conflicts of various Planning Commissioners and City Attorney Alexandra Sosnokowski have resulted in the June 17 City Planning Commission deliberations on Ordinance 1851 being postponed until July 14.
Linda Maddox commented on the work session discussion by stating that Commissioner Lyons's proposed Resolution was a momentous step forward and she offered a huge "Thank You!" to the Commissioners. Maddox stated the park would speak for itself, and further stated her opinion that while many of the doubters may or may not go away, she thought their energy would be positive.

4. APPROVAL OF MINUTES:

Motion: Move to approve the June 1, 2004 regular session meeting minutes.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS:

a) Executive Director:
· Bridge Update: Executive Director David Harlan reported that the nighttime closure schedule would resume on Sunday, June 20, at 10:30 p.m. With the delivery of more deck panels to the main staging area east of the Expo Building, Christie Constructors has requested use of the former BMX track (the graveled area southwest of the Port Office) for minor staging of the vehicles carrying the deck panels to be placed during the nighttime closures. Harlan reported that staff had authorized the request from a project-efficiency standpoint and to also assist Christie Constructors with transportation permit issues that had been raised by the Oregon Department of Transportation. Harlan reported the north liftspan gearbox would be pulled for inspection when HNTB, the Port's bridge engineering firm, is here in July for pre-scheduled mechanical and electrical, and routine maintenance inspections.
· Waterfront Update: Harlan reported that he had met with Bill Smith of William Smith Properties on June 9 and that the meeting discussions would be reviewed with the Real Estate Committee on June 16. Harlan stated that the Port and Smith intend to move forward with a waterfront Development Agreement, and that a series of meetings revolving around Planning Commission and City Council deliberations will be scheduled with Smith.
Harlan recently met with the City's Goal 5 Technical Advisory Committee and reported there are still differing opinions on "significant" riparian habitat. Harlan commented that Port consultant Susan Cunningham was scheduled to meet with Steve Pribyl of the Oregon Department of Fish and Wildlife to review the data and determine which areas, if any, an ESEE analysis will need to be done. Harlan stated an ESEE analysis evaluates the "environmental, social, energy, and economic" consequences of allowing, limiting or prohibiting conflicting uses near a Goal 5 resource. Bob Francis commented there was City Council consensus to move ahead, but that he did not know what the three recommendations were.
Harlan commented that items on the agenda under New Business, which he recommended the Commission approving, included a grant request to the Oregon Economic and Community Development Department (OECDD) for waterfront planning and marketing; and a date-extension only on Richard Leonard's contract for mapping and Goal 5 services.
· Big 7/College Update: Betz Construction is scheduled to begin work on Friday, June 18, on the tenant improvement project; and Harlan reported that a $30,000 grant secured from the Oregon Investment Board will help fill the gap on the construction project for the Port and Columbia Gorge Community College.
· Wasco Business Park Update: Bidding on construction of a tenant building has been advertised and bids are due July 8. Harlan reported he is discussing the feasibility of securing a $300,000 strategic reserve grant from OECDD to relieve some of the cost burden for Humanities Software.
· Waterfront Recreational: Mid Columbia Marina is now in receipt of a letter informing the Port tenant of the new lease rate based on the property appraisal. Harlan reported that Mr. Drennen has not contacted the Port to begin negotiations on a new lease. Harlan reported that ongoing problems at the Event Site of drivers unloading gear and leaving cars unattended has resulted in the decision to repaint curbing and post "Tow Away Zone" signs.
· Airport Update: The Automated Weather Observation System (AWOS) was commissioned by the Federal Aviation Administration and became operational as of June 14.
· Public Records Policy: Harlan stated attorney Jerry Jaques had reviewed staff's reformatting of the Public Records Policy and price restructuring, which is in alignment with costs currently charged by the City and County. Harlan's recommendation was that the Commission authorize approval of the updated policy.
· Personnel Policy Revisions: Harlan reported the Personnel Policies & Procedures manual being presented for Commission approval was a version of the Special Districts Association of Oregon model and attorney Jaques had reviewed the Port's policy. There was Commission consensus that this New Business agenda item would be tabled until the July 6 meeting, and staff was directed to provide the Commission with details of the revisions.
· Other: Harlan recommended the Commission take action under New Business to authorize a vote in favor of dissolving the Oregon Public Ports Association. Harlan reported this action would not have an impact on the Port of Hood River since the Port is currently a member of the Oregon Ports Group. Harlan reported he had attended the mid-year conference of the Pacific Northwest Waterways Association (PNWA) in Richland, as well as a meeting hosted by PNWA at the Expo Center with Congressman Greg Walden discussing the need for navigational channel deepening; a meeting at the Odell Sanitary District in support of the District's system upgrade to meet the growing residential and light industrial development demands of the Odell community; and a meeting with Hood River Valley Parks and Recreation director Lori Stirn to discuss the donation of surplus Port property to Parks and Rec for their Indian Creek Trail project.

b) Other:
· Election of 2004-2005 Officers: President Hosford reminded the Commission that election of officers would be the first item of business at the July 6 regular meeting. The new Commission President should then be prepared to make committee assignments.

Harlan reiterated a comment from his Executive Director Report-Waterfront Update that the upcoming series of meetings with William Smith Properties would be closely followed by Real Estate Committee meetings, so the Commissioners assigned to this committee would need to be somewhat flexible in their schedules.

6. ITEMS FROM WORK SESSION: No Commission action was taken; however, President Hosford directed Commissioner Lyons to refine the drafted Resolution for Commission review at the next regular meeting on July 6.

7. NEW BUSINESS:
a) Revised Public Records Policy: Executive Director Harlan stated the policy revision was fee-related only and in alignment with costs currently charged by the City and County of Hood River.

Motion: Move to approve the Public Records Policy as revised.
Move: Duckwall
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Revised Personnel Policies: There was Commission consensus to table this item until the July 6 meeting, and staff was directed to provide the Commission with details of the revisions.

c) OECDD Port Planning and Marketing Grant Resolution No. 2003-04-6: As stated in the Resolution, the Port would make a $7,375 (25%) cash contribution and request a grant for the remaining $22,125 from the Oregon Economic and Community Development Department's Port Planning and Marketing Fund to assist in the waterfront market research feasibility studies which the Port has contracted with E.D. Hovee & Company to provide.

Motion: Move to approve Resolution No. 2003-04-6 requesting a Planning and Marketing Fund Grant from the Oregon Economic and Community Development Department to assist in the waterfront market research feasibility studies.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

d) 2004-2005 Budget Resolution No. 2003-04-7:

Motion: Move to approve Resolution No. 2003-04-7 adopting the 2004-2005 Budget in the amount of $14,054,834.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

e) OPPA Dissolution:

Motion: Move to approve the dissolution of the Oregon Public Ports Association and authorize the Executive Director to cast the ballot on behalf of the Port of Hood River.
Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

f) Bridge Change Order: Linda Shames, Accounting Manager, commented that two change orders were being presented for Commission ratification since both change orders had already been approved by the Finance Committee. Shames explained that the first change order requires additional washers and longer bolts as a substitute for washers that are no longer readily available. The second change order is for one additional variable message sign. Shames reported that bid documents were changed to reflect the total number of variable message signs needed, but that the line item bid sheet did not get revised.

Motion: Move to ratify the Finance Committee's approval of Bridge Change Order No. 2 in the amount of $1,564; and Bridge Change Order No. 3 in the amount of $15,000.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

g) Consultant Contract Extension - Richard Leonard: Executive Director David Harlan commented the change in contract date from June 30 to August 31 mirrors the action taken by the Commission at the June 1 meeting for a date-only extension of the Richard Hill Associates contract. The unexpended dollars on Leonard's contract will be used for waterfront mapping, Goal 5 ESEE (environmental, social, energy, and economic) analysis, and other work as assigned.

Motion: Move to extend the Richard Leonard contract date from June 30 to August 31, 2004.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn,