Minutes of March 2, 2004 Port of Hood River Commission Regular Meeting
Expo Center Conference Room
7:00 P.M.

Absent: From staff, David Harlan and Linda Shames

Media: None

President Don Hosford called the regular session to order at 7:00 p.m.

1. INTRODUCTIONS: John Gerstenberger, Hood River Electric Cooperative; Bill Bohn, Columbia Gorge Community College; and Linda Maddox introduced themselves and were welcomed to the meeting by President Hosford. Late arrivals included Ann Frodel and Susan Froehlich.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: Bridge Change Order No. 1 was added to the agenda under New Business; an informational item regarding the Gorge Commission Bridge Design Workshop was added to Reports-Executive Director; and an airport discussion under Reports-Other was requested by Commissioner Streich.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the February 17, 2004 work session/regular session meeting.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

5. REPORTS

a) Executive Director: In David Harlan's absence, Commission President Hosford called upon Mike Doke, Economic Development/Marketing Assistant, to comment on the following agenda items:

Bridge Update: Linda Hull, Administrative Assistant, reported the February 18 employers/business owners and emergency responders bridge forums were well attended and that questions were addressed by the project manager, contractor, and Port staff. A follow-up meeting involving 9-1-1 centers from Hood River, Klickitat and Skamania counties will be held the second week in March to formulate a coordinated policy for emergency crossings once nighttime closures begin in May. Hull reported the contractor is willing to work with the emergency responders. An April date for a brown bag and evening public forum has not been determined at this time. Commissioner Streich questioned if a crisis response policy was in place? Staff was directed to contact other Port districts, and Special Districts of Oregon Association for information, which Doke stated he would discuss with the Community Relations Committee.
· Wasco Update: Attorney Jerry Jaques commented the Commission would be taking action under New Business granting a public right-of-way to the City of Hood River for Wasco Loop, which allows the City the right to open, construct, improve, and maintain roads and streets, and place improvements on the dedicated area. Jaques stated the City should act on the Right-of-Way Dedication at their March 8 council meeting.
· Spring Planning Session Update: March 26 had been set as the date for the Spring Planning Session; however, President Hosford is not available. March 25 was discussed as an alternate date and staff will confirm the date with the Commission.
· Community College Update: Mike Doke reported that bid packets should be available for staff review the end of the week and that he anticipated letting bids towards the end of the month and a bid opening on April 14.
A discussion on "dark fiber," which was defined as fiber cable that is installed but not being used, was led by Commissioner Bohn who invited comments from NoaNet representative John Gerstenberger of Hood River Electric Cooperative, and Columbia Gorge Community College representative Bill Bohn. Availability, connectivity, redundancy and cost issues involving the Port, Hood River Electric Cooperative, Gorge Networks, and Sprint will be discussed at a later date. President Hosford thanked Gerstenberger and Bill Bohn for their participation in the discussion.
· Gorge Commission Meeting: Mike Doke reported that staff would be attending a Gorge Commission meeting on March 9, which will include a design guidelines workshop for a future interstate bridge.

b) Other -
· Pacific Northwest Waterways Association Annual Mission: President Hosford summarized his and Executive Director David Harlan's lobbying trip to Washington, D.C. the last week in February. Hosford reported they had met with the Oregon and Washington congressional and staff delegations and that discussions included the bridge redecking project and toll plaza, and the technology center. Hosford commented that money was tight this year so additional funding did not look too promising.
· Airport Land Leases: Commissioner Streich commented on his concern about protecting the Port's assets relative to the design and integrity of privately built hangars on airport property. Mike Doke commented there is a review process by the Federal Aviation Administration and the Hood River County Planning Department, but that he would review the lease language with attorney Jaques.

6. ITEMS FROM WORK SESSION:

a) Waterfront Planning: The Position Statement approved by the Port Commission on February 17 was presented to the City for consideration at the February 23 City Council meeting in which further deliberations were held on the draft Waterfront Zone. Commissioners Bohn and Streich attended the February 23 Council meeting. As a result of the Council's comments, meeting minutes, and consensus items, Commissioner Bohn led the discussion reviewing the individual issues with the goal of submitting another response to the City for consideration at the Council's March 8 meeting. The response will include an acreage map of the waterfront area north of Portway; and the response will also formally request that the City Council keeps the Port involved in the ordinance process at either staff or Commission level. Commissioner Streich urged his fellow Commissioners and Port staff to attend the March 8 City Council meeting. President Hosford thanked Commissioner Bohn for taking the lead on the waterfront planning discussion.

Motion: Move to approve the Port Commission Revised Position Statement of items 1 through 20, to be signed by the Commission President and delivered to the City Council President and Mayor for consideration at the March 8, 2004 City Council meeting.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

7. NEW BUSINESS:

a) Wasco Business Park Right-of-Way Dedication:

Motion: Move to approve the Wasco Loop Public Right-of-Way Dedication from the Port of Hood River to the City of Hood River, and authorize the Commission President and Secretary sign the Dedication paperwork.
Move: Streich
Second: Lyons
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

b) Budget Committee Appointments: The three-year terms of budget committee members Felix Tomlinson and Tom Drach expired on March 1, 2004, and both gentlemen have expressed their willingness to serve another three-year term.

Motion: Move to reappoint Felix Tomlinson and Tom Drach to a three-year term on the Budget Committee.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

c) Approval of Accounts Payable: None.

d) Bridge Change Order: Staff submitted a recommendation to the Finance Committee for the acquisition of additional permanent signs to be posted at four alternative traffic routes advertising bridge closure information. Commissioner Lyons commented the signs would be an efficient way to inform motorists if message boards were unavailable in the event the Oregon and Washington Departments of Transportation needed the message boards for their own purposes.

Motion: Move to approve Bridge Change Order No. 1, as recommended by staff and in an amount not to exceed $15,000.00, for four additional semi-permanent signs posting bridge closure information.
Move: Lyons
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Lyons, and Streich
MOTION CARRIED

8. EXECUTIVE SESSION: None.

9. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on March 16, 2004 at the Expo Center Conference Room.

President Hosford adjourned the meeting at 9:15 p.m.

Minutes of March 16, 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, Mike Doke, Linda Hull, and Laurie Borton

Absent: Commissioner Don Hosford; from staff, Linda Hull

Media: None

Vice President Sherry Bohn called the regular session to order at 7:02 p.m.

1. INTRODUCTIONS: North Cheatham, Ann Frodel, Susan Froehlich, Linda Maddox, and Brian Robb introduced themselves and were welcomed to the meeting by Vice President Bohn.

2. MODIFICATIONS, ADDITIONS TO AGENDA BY COMMISSIONERS: Executive Director David Harlan stated that he would cover points under Reports-Executive Director that may result in action items relative to a "Wasco Business Park" draft Memorandum of Understanding; and "Waterfront Update" issues relating to Goal 5 riparian inventories, marketing studies, grant funding, and Port/City Intergovernmental Agreements.

3. UNSCHEDULED ITEMS FROM THE GENERAL PUBLIC: North Cheatham made a presentation to the Commission (attached to official record) recommending the Port consider harvesting wind energy and selling the electricity to PacifiCorp as a solution to the revenue loss should a lower density plan on the waterfront become a reality. Cheatham suggested Bingen Point, Dallesport, or the Klickitat Public Utility District's Last Mile Project as possible sites for the location of wind turbines, and further recommended that the Commission study his recommendation. Cheatham addressed questions from the Commission, after which he was thanked for his presentation.

Brian Robb, stating he had no connection with the Gorge Games organization, recommended the Port sign on as a sponsor and lend financial support to Gorge Games which would benefit the community relative to tourism, marketing, and visibility.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes of the March 2, 2004 regular session meeting.
Move: Duckwall
Second: Lyons
Vote: Aye: Bohn, Duckwall, Lyons, and Streich
Absent: Hosford
MOTION CARRIED

5. REPORTS

a) Executive Director:

· Spring Planning Session: Executive Director David Harlan reported the Spring Planning Session would be held at the Expo Center conference room beginning at noon on Thursday, March 25. Harlan stated a Finance Committee meeting would be scheduled earlier in that week to review the draft audit, and to look at current revenue and expense scenarios compared to scenario forecasts that are not supported by bridge appropriations. Harlan reported that outside agencies have commented that a bi-state owned toll bridge may be built to replace the current Port-owned bridge within 10 to 15 years as opposed to 20 to 40 years away.
· Bridge Update: At the last weekly project meeting, the probability that full nighttime closures won't begin until mid-May was discussed. Harlan also reported that meetings are continuing with emergency response personnel to address anticipated situations; a bridge project memo was mailed to commercial accounts; and a noontime and evening public forum will be scheduled for April. Congressional staff discussions regarding fiscal year 2005 Department of Transportation appropriations in the amount of $740,000 for toll plaza improvements, and preliminary engineering and design of a new vehicle bridge across the Hood River are being discussed as a way to address traffic congestion of I-84/US30/SR35. An updated easement is being finalized for the Williams Gas Pipeline attachment to the Interstate Bridge.
· Marina: Executive Director Harlan asked for direction regarding numerous inquiries for use of the Marina Green in 2004 for soccer clinics, practices, and games. Because the Marina Green was anticipated to be the site for the bridge redecking project's staging area, the Hood River County School District's Community Education Department was allowed temporary, and free, use of the Marina Green last year. Harlan stated that increased use correlates to increased costs for lawn care, sprinkler repair, and park maintenance. The Commission recommended further discussion by the Real Estate Committee. Based on the Port's request and an evaluation of the cruise ship dock by the U.S. Coast Guard, Harlan reported a "Letter of Designation as a Public Access Facility" had been received, which means the facility qualified for an exemption from the new maritime security regulations of 33 CFR Part 105. Harlan also stated a meeting of the Waterfront Recreation Committee would need to be scheduled to discuss 2004 fees; and that the Commission would get back on track following the Spring Planning Session to form the Marina Planning Committee.
· Community College Update: Paperwork has been submitted for a FIPSE grant in the amount of $49,705 that will be used for equipment purchases to be located in the Big 7 Building. Executive Director Harlan reported the Port and Columbia Gorge Community College are still wrestling with improvement costs. The bid package for electrical, mechanical, structural, general architectural, and parking lot improvements would be let March 29, and Harlan reported that when bids are opened April 28, answers as to what improvements are made, and, by whom, should be more clearly defined. Linda Shames, accounting manager, commented that once the "notice to proceed" has been given, the contractor would have six weeks in which to complete construction. Harlan also reported that both Gorge Networks and the College have asked for additional space in the Big 7 Building. Harlan commented that Hood River Electric Cooperative has quoted a cost of $27,650 for the NoaNet fiber run from Sprint's central office on State Street to the Big 7 Building.
· Wasco Business Park Update: The City of Hood River accepted the Road Dedication at the March 8 City Council meeting, however, Council has recommended a name change because of potential confusion for emergency responders created by similarly named streets--Wasco Avenue, Wasco Court, Wasco Loop. The Commission directed staff to submit a letter to Council opposing their recommendation to change the proposed name of Wasco Loop to "Bob's Way." Other Wasco Business Park items included a cursory review of the draft Memorandum of Understanding that Harlan would be discussing with Humanities Software on March 17; an architectural site plan had been submitted to the City Planning Department for review; land acquisition discussions with the Post Office continue; and a preliminary first meeting with a local developer discussing a property purchase.
· Waterfront Update: Executive Director Harlan commented that although a timeline had not been identified, Homeshield is already talking about expansion needs for their window frame accessory manufacturing business. Harlan also reported that a "No Further Action Determination" letter had been received from the Department of Environmental Quality following its review of the drum and soil cleanup of the UTS Portsite. The Commission was informed the City was ready to bid the waterline improvement project that runs under I-84 onto the waterfront property. At Commissioner Lyon's request, Commissioner Bohn reviewed her notes from the March 8 City Council meeting on the draft waterfront zone reporting on the Council's review and consensus on all points not involving riparian (Goal 5) issues and directing City staff to draft a revised Ordinance 1851. Bohn and Harlan further commented that windshadow effects on Lots 7 (Homeshield) and 4 (Luhr Jensen) were discussed; that the park would be zoned as open space with parking included either on Lot 6 or Lot 8; but that the boat basin "slackwater beach" was not discussed.
Harlan reported the Real Estate Committee had met that afternoon in preparation for a meeting Harlan would attend on March 18 with Richard Hill Associates, Bill Smith of William Smith Properties, and Smith's accountants to discuss the Memorandum of Understanding, waterfront zone status, and due diligence issues. The Committee also discussed the need to go ahead and initiate a market analysis to get a handle on potential commercial, light industrial, and residential opportunities on the waterfront. Harlan reported that Oregon Economic and Community Development Department (OECDD) grant funds would be available for this purpose and he was directed by the Commission to pursue funding.
Harlan also reported that he and Port consultant Rich Leonard had met with City staff that afternoon, and with Ann Beyer of the Oregon Department of Land Conservation and Development Commission (LCDC) on March 8 to discuss riparian (Goal 5) issues. Beyer commented that waterfront riprap had little or no value as riparian habitat, and the Port had minimal wetlands that would need protection under LCDC's "standard process" for addressing Goal 5's requirements, which would allow for more flexibility than the "safe harbor" approach. Because grant dollars to participate in the riparian inventory had been accepted, the City is bound by the June 30 deadline unless extension rationale is provided to LCDC. Harlan stated the City had expended the grant funds and that the Port was offering to assist by way of funds and mapping resources, in the best interest of the Port, City, and LCDC. Harlan stated that action needs to be taken as soon as possible on the riparian inventory, and that Richard Leonard has proposed an expanded Scope of Work to assist in meeting the City's June 30 deadline. Commissioner Lyons recommended that no action be taken at this meeting on Leonard's proposed Scope expansion until staff had further discussion with the City clarifying the details.
Staff was directed by the Commission to discuss with the City the Goal 5 (riparian access) and Goal 9 (industrial land) inventories, the Waterfront Park, and associated Intergovernmental Agreements.

b) Other - None.

6. ITEMS FROM WORK SESSION: None.

7. NEW BUSINESS:

a) Budget Schedule: Accounting Manager Linda Shames provided the Commission with potential dates for the Budget Message and Budget Hearing meetings, which require a 2-week public notice. The meeting will most likely not be scheduled until the end of April in order to accommodate vacation and meeting conflicts. There was Commission consensus to confirm the meeting date(s) at the March 25 Spring Planning Session.

b) Big 7 Fiber Extension: In a follow-up to the March 2 Commission meeting discussion, Hood River Electric Cooperative has provided a cost estimate of $27,650 to run the NoaNet fiber from Sprint's central office on State Street to the Big 7 Building on Industrial Street. Redundancy was the answer to Commissioner Bohn's question on whether or not the NoaNet fiber would be an asset to Big 7; and Columbia Gorge Community College's need to connect to NoaNet in order to "talk" to ESD (Educational Service District) was the answer to Commissioner Streich's question on whether or not a demand existed. Executive Director Harlan commented that Gorge Networks now views the NoaNet fiber run as a redundancy benefit. There was Commission consensus for staff to pursue the NoaNet fiber run between the Sprint central office and the Big 7 Building with Hood River Electric Cooperative.

c) Marina Green Use: Soccer use on the Marina Green was referred to the Real Estate Committee for further discussion. Staff was directed to contact Mike Schend of the Hood River County School District Community Education Department to request that their soccer goals be moved off the field after each use. Commissioner Duckwall then made the recommendation that a dedicated use by the Community Ed's youth soccer program could be considered because there should be less wear and tear of the Marina Green.

d) Approval of Accounts Payable:

Motion: Move to approve Accounts Payable for Terra Surveying in the amount of $2,153.95; for Seaborn Engineering in the amount of $1,950.00; and for Ramis Crew Corrigan & Bachrach, LLP in the amount of $6,655.05 for a total of $10,750.00.
Move: Lyons
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Lyons, and Streich
Absent: Hosford
MOTION CARRIED

8. EXECUTIVE SESSION: None.

9. NEXT MEETING DATE: The next regular meeting of the Port of Hood River Commission will be held on April 6, 2004 at the Expo Center Conference Room.

Vice President Bohn adjourned the meeting at 8:35 p.m.

Minutes of March 25, 2004 Port of Hood River Commission Special Meeting
Strategic Planning Work Session
Expo Center Conference Room

Present: Commissioners Don Hosford, Fred Duckwall, Hoby Streich and Sherry Bohn; from staff, David Harlan, Mike Doke, Linda Shames and Linda Hull; Others: Linda Maddox

Absent: Commissioner Bill Lyons, Attorney Jerry Jaques

Media: None

President Don Hosford called the special meeting to order at 12:20 p.m. for the purpose of discussing the annual 2004 strategic planning and financial budget for the Port of Hood River and the Commission immediately went into a work session.

Introduction/Strategic Planning Overview: Executive Director David Harlan asked the Commission to discuss its long-term asset management strategies in the context of the potential eventuality and implications of decreased bridge revenues, if and when the new bridge is built within the next 20 years. The Port's goal continues to be to reduce allocation of bridge revenues to support current and future assets and expand revenues from its operations.

SR-35 Columbia River Crossing Project: Harlan explained that both Washington and Oregon Department of Transportation agencies (WSDOT, ODOT) have pressure from Gorge users, both rural and urban, to move faster on a new crossing. ODOT has also indicated the backups on Exit 64 are on their radar. Harlan asked the Commission if they would consider building a new 2-lane bridge. After discussions with HNTB today, Harlan stated HNTB, the Port's bridge engineers, could do a feasibility study to analyze that possibility. Private sector partnerships are a current trend. There was consensus to have HNTB do a feasibility analysis based on a 20-year timeframe. Once the Port completes the study, it can approach the state agencies for discussion.

Waterfront Development Project: Harlan told the Commission that the elimination of valuable property along the waterfront for development diminishes the feasibility of a tax increment financing district for public improvements, including the wastewater treatment plant odor. It may be possible to add the area to the current district. Linda Shames said Gresham and Bend are successful examples of cities working with developers and non-profits to accomplish projects. Harlan said the current hearings process for Ordinance 1851 is that it will go to city staff once again, then to the Planning Commission, and then back to the Council. Commissioner Bohn felt the Port would eventually get a zone, and because the process is controlled by the city the Port has to work within that political environment. Commissioner Streich agreed and felt the Commission and the Council should have a joint work session to discuss Goal 5 and zone adoption timelines, so everyone is equally informed. Harlan will try to set up a joint meeting in April. Harlan stated the Goal 5 designation and implications of "standard" vs. "safe harbor" need to be clearly understood by the City and the Port. Consensus was that market research should begin immediately; Harlan said there may be Oregon Economic Development grants available for this purpose.

Strategic Review and Plan Update/Financial Status Review: Linda Shames, Accounting Manager, reported on the following assets: BRIDGE: The bridge revenues will be down this year because of construction. January was down 17% due to the week of bad weather. DIAMOND INDUSTRIAL: The Columbia Building was sold in September for cash and will be reinvested in the Wasco Business Park building. Big 7 Building will be 94% leased once the community college is located there. WATERFRONT INDUSTRIAL: UTS Portsite 65% leased with good tenants and Homeshield is at a break-even point with the tenant improvements. The Expo Center revenue is down with expenses the same. The Event Site was up for July/August, but not used as much on weekdays. The Cruisedock revenue will decrease this year because Queen of the West is not stopping. There will be 60 total stops by other vessels. MARINA PARK/MARINA: Revenue and expenses remain the same from last year. 39% of the expenses are attributed to the park, with only 8% offset by revenue. The Marina Planning Committee will be addressing the revenue shortfall and long-range strategies. Long boats are the trend now and there is a waiting list for those slips. Only two of the 17 on the wait list reside in the Port District. There may be State Marine Board grants for expansion and improvements, particularly for public access and clean water issues. AIRPORT: Revenues/expenses remain constant. Only two of the eight on the hangar wait list reside in the Port District. JWBP: The Timber Building is a positive cash flow asset with no debt. WASCO BUSINESS PARK: The property is shovel-ready with two entities strongly interested in lease or purchase: Humanities Software and the U.S. Postal Service. Other parties are interested in the remainder.

Financial Policy Review: Harlan told the Commission that staff will be researching other short-term investment strategies for a higher return percentage. Discussion followed regarding the privatization of Port property as part of the strategic plan. Owning assets over a long period of time can help replace the bridge revenues.

Asset Management: Other asset issues not discussed under Financial Status Review included discussion of all Port properties meeting return on investment goals. Harlan said the Marina Planning committee will be asked to plan for new revenue streams so the asset will return enough for maintenance and improvements over time. The Big 7 Building has a freight elevator that can no longer be repaired due to age and obsolescence. There should not be a need for it in the future because the building is going in another direction with the community college. There was discussion regarding the marketing of Odell and Wasco property. The Port works with the County Economic Development and CGEDA in their regional marketing strategies. Because the Port has had minimal lots available there has not been much to market. Discussion was held regarding acquisition of property around the airport and the possibility of its development at some future time. Federal Aviation Administration funds are available for acquisition of land.

Five-Year Capital Plan: The Commission reviewed the Five-Year Capital Plan draft with proposed capital items and then revised schedules and amounts. Linda Shames will prepare the Plan for the Budget Committee that will meet next month.

Strategic Planning Results and Commission Direction:
Policy and Direction Regarding Replacement of Bridge Revenues: The goal is to cut subsidization of properties from bridge revenues and increase their revenue streams.
Policy and Strategy Regarding Bridge Value Capture and Income Loss Mitigation: The Port will work with the state agencies through the replacement process, with particular attention to demolition costs.
Revised Schedule for Waterfront Development Project and Developer Negotiations: Next meeting with William Smith Properties is April 9.
Criteria and Time Target for Finalizing Waterfront Development Direction: The Port will continue to monitor the City's zoning process and final outcome.
Asset Acquisition Priorities and Guidance: The Capital Plan reflects the direction of the Port. Financial analysis of various potential properties will be undertaken prior to any purchase offers.
Future Relations with City Planning Function/Activities: The Port will continue to work cooperatively with the City to resolve zoning issues, including Goal 5 and setbacks, and Planning Commission review.
2004-05 Budget Development Direction: Harlan would like Port compensation reviewed in recognition that Hood River has a high cost of living.

President Hosford then called the Commission into regular session at 3:45 p.m.

A. SR-35 Support Request. The Commission is supportive of the studies but would first like HNTB to provide more information on bridge replacement costs.

B. Richard Leonard Scope of Work. Consensus was to reduce the scope of work at this time until the waterfront zoning is completed. Harlan will discuss a revised scope with Mr. Leonard.

C. Other: Washington Department of Transportation needs formal authorization and a resolution approving a temporary construction permit for work on the SR 14 signal installation project on the Hood River Bridge Road.

Motion: Move to approve Resolution 2004-04-5 approving the Temporary Construction Permit issued by the Port of Hood River to the State of Washington Department of Transportation and authorizing the Executive Director to sign the permit.

Move: Bohn
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Lyons
MOTION CARRIED

EXECUTIVE SESSION: President Hosford called the Commission into Executive Session at 3:50 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 4:30 p.m. No action was taken as a result of Executive Session.

Meeting was adjourned at 4:32 p.m.