Minutes of October 4, 2004 Special Meeting 
Port of Hood River Commission
Expo Center Conference Room
 6:00 P.M.

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

Absent: None

Guests: Commissioner Applicants Mike Benedict, John Everitt, Carl Perron, Nicole Ricci, Cory Roeseler, Kathy Watson

Media: None

1. President Sherry Bohn called the Special Meeting to order at 6:00 p.m. for the purpose of interviewing candidates for appointment to Commission Position #3 recently vacated by Bill Lyons. She asked that the Approval of Minutes be tabled until after the selection process was ended. Executive Director David Harlan asked that Bridge Change Order #5 be added under Other Business.

2. Review of Questions: President Bohn thanked everyone for taking the time and energy to apply for this position. She explained that interviews would take place after the applicants took ten minutes to review the questions. The Commission would then deliberate, select, and appoint a new Commissioner.

3. "Interview Qualifications and Questions" were provided to all applicants for review. The candidates were allowed 5-7 minutes to respond to the questions. All candidates remained in the room while each applicant, by random draw, presented his or her responses.

4. Deliberations: At the end of the presentations, Commissioners asked clarifying questions of the candidates and then stated what qualities they believed would be important in the selection process. Commissioner Streich stated he was looking for a team player with flexibility, who works well with others, and who has no preconceived ideas. Commissioner Hosford stated he was looking for a team player who can compromise and can also look at the entire Port District, not just the waterfront. Commissioner Duckwall stated all the candidates were qualified to serve and that being a team player is important but there is also room for dissent. President Bohn stated everyone was well-qualified and this was not an easy process. She thought that Budget Committee experience was important, as well as having a sense of humor. She believes an important aspect of the position is being able to stand up in public meetings and voice opinions and make tough decisions.

5. Selection: Each Commissioner cast votes for their top two candidates; the applicant with the most votes would be chosen to fill the vacancy. A tally of the votes resulted in a tie between Mike Benedict and Kathy Watson. After further deliberations and discussion, Kathy Watson received the majority vote.

President Bohn commended all the candidates, stating she hoped those not appointed would choose to become involved with the Port by serving on committees, if they do not already do so. At 7:15 p.m., the Oath of Office was administered to Kathy Watson and she was formally seated on the Board.

6. Approval of Minutes:
Motion: Move to approve the September 28, 2004 (work session/regular session) meeting minutes.
Move: Hosford
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

7. Other Business:

Harlan explained that 24 lateral bracing supports on the bridge need replacing. Ed Hoyle, HNTB Project Manager, recommended it be done as a force account, basically time and materials totaling $7,200. The Finance Committee approved the change order last week.

Motion: Move to ratify Bridge Change Order #5 in the amount of $7,200.
Move: Hosford
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

President Bohn then appointed Fred Duckwall to replace Bill Lyons on the Real Estate Committee. The meeting was adjourned at 7:20 p.m.

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Minutes of October 6, 2004 Work Session Meeting
Port of Hood River Commission
Hood River Inn, Mt. View Room, 12:00 P.M.

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

Others: Bill Smith (William Smith Properties), Bill Lyons, Real Estate Committee,
Eric Hovee, E.D. Hovee & Co., and Don Singer, Integra Realty Resources

Media: Mark Bailey, KIHR

1. President Sherry Bohn called the Commission into Work Session at 12:15 P.M. for the purpose of discussing waterfront marketing and valuation studies and for discussing developer issues with William Smith Properties.

2. Eric Hovee presented his information regarding Waterfront Real Estate Market Assessment in preparation for completing the final report. The purpose of the assessment was to evaluate the market for retail, office/commercial, light industrial, residential, and lodging and conference. Hovee compiled market data and incorporated local interview information in refining his analysis. He did not reach a conclusion for absorption for mixed uses at this point in the analysis and felt that would be more appropriate for analyzing a specific development proposal.

Hovee discussed demographic and economic data, starting with the local market of Hood River County and expanding all geographical directions. He discussed the retail market, explaining the leakage for all the market areas. He also explained that the local demand for office space is modest, but stated new Class A office space is in short supply here and the waterfront would attract that kind of space, along with office suites and live-work professional lifestyles. A special survey would have to be conducted to determine the future needs and service requirements of those entrepreneurs utilizing live-work space and their jobs do not get compiled in employment data.

Regarding light industrial on the waterfront, Hovee stated it is not the highest and best use of the property and other places in the area can accommodate that projected need over the next 20 years, but it is a policy decision that the Port needs to make.

Residential demand on the waterfront would consist of 800-1200 square foot high-end town home/condominium units appealing to the urban-oriented residents and downsizers.

Lodging potential was discussed in the context of occupancy rates and room rates. It appears that the potential demand in 3-5 years for a boutique hotel would require reserving a site on the waterfront in advance; a freeway-oriented motel could be developed earlier.

In discussing the mixed-use market, Hovee explained there is no clear winner, but to create a baseline neighborhood you would need a combination of residential, office, and retail. The urban residential is the strongest market for both site use and value and successful development requires creation of mixed uses that reinforce each other.

3. Don Singer discussed the waterfront appraisal process he is conducting at the present time. He will use the same process as Hovee in utilizing demand and demographics, however he will apply his analysis to each specific parcel and use. Singer should have a preliminary draft available within two weeks.

Discussion followed with both Singer and Hovee answering questions from the Commission and Bill Smith. Hovee stated it is important for the zone to allow for flexibility with all marketing areas, that the design guidelines and master plan will set the tone for quality. Singer stated for an accurate analysis of the highest and best use, more needs to be known about those living here currently in regards to their work and lifestyles.

After a short break, President Bohn called the Commission into Executive Session under ORS. 192.660(1)(e) Real Property at 3:05 p.m. At the conclusion of Executive Session, the Commission was called back into Regular Session at 5:15 p.m. No action was taken as a result of Executive Session.

The meeting was adjourned at 5:15 p.m.

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Minutes of October 20, 2004 Work Session/Regular Session Meeting
Port of Hood River Commission
Expo Center Conference Room, 6:00 P.M.

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

Absent: Commissioner Kathy Watson

Media: None

President Sherry Bohn called the Commission into work session at 6:02 p.m.

1. WATERFRONT PLANNING: Executive Director David Harlan stated the primary focus of the work session would be to edit the draft letter on the waterfront mixed-use zoning process (City Ordinance 1851) that the Port would submit as testimony at the City Council's October 25, 2004 meeting. Input from the Commissioners, along with comments from Bill Lyons, ad hoc Real Estate Committee member; Richard Leonard, Port mapping consultant; and Don Singer, Port marketing analyst were considered. Harlan stated the testimony would be finalized at the October 22 real estate committee meeting.

The first reading of Ordinance 1851 is scheduled for October 25, with the 26th set aside for "spill over" testimony and deliberation. City Manager Bob Francis commented that he hoped the second reading and passage of Ordinance 1851 would occur at the Council's November 22, 2004 meeting. Francis did comment, however, that Council would need confirmation from Ron Dodge of Hood River Distillers (HRD), that the Port and HRD are working on an agreement in which the Port would prohibit certain uses in proximity to the north edge of the distillery property.

Executive Director Harlan also commented that he and attorney Jerry Jaques would need to schedule a meeting next week with Francis and city attorney Alexandra Sosnkowski to discuss the Waterfront Park intergovernmental agreement. Francis posed a hypothetical question asking if the Commission would oppose the appointment of a group, with fund raising experience, to assume the role of the Park Development Committee? There was Commission consensus that the membership selection should be a Port/Council process with valley-wide representation and that the Park Development Committee could utilize persons with fund-raising expertise as a subgroup.

President Bohn closed the work session at 6:55 p.m.

1. CALL TO ORDER: President Bohn called the regular session to order at 7:04 p.m. Chris Gann, Linda Maddox, and Bob Francis, Hood River City Manager introduced themselves. Executive Director David Harlan requested an additional agenda Action Item regarding a revised cost estimate for the bridge lift span guardrail.

2. PUBLIC COMMENT: None.

3. APPROVAL OF MINUTES:

Motion: Move to approve the October 4, 2004 (special) and October 6, 2004 (work session) meeting minutes.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

4. INFORMATION-COMMUNICATIONS:

a) Executive Director:
· Bridge Update: Executive Director Harlan reported the bridge redecking project is ahead of schedule and that a press release on the completion date should be available shortly. Harlan reported a reduced speed limit had been considered but that HNTB, the Port's bridge engineering firm, was not recommending a change at this time. Harlan commented that the Port would send a representative to the Oregon Department of Transportation's November 4 meeting recommending that ODOT consider the I-84's Exit 64 interchange as a priority for the 2006-2009 Statewide Transportation Improvement Program (STIP).
· Waterfront Update: Commission President Bohn and Executive Director Harlan will attend the October 25, 2004 City Council meeting to present the Port's testimony on waterfront zoning Ordinance 1851. The second reading, and hopeful passage, of 1851 is anticipated for the November 22 City Council meeting. Harlan commented that further discussion on a Development Agreement and task milestones will be scheduled for the Commission's fall planning session on November 2. Commissioners Bohn, Duckwall, and Streich will join Executive Director Harlan and attorney Jerry Jaques for an informational meeting October 29 with architect Ned Vaivoda in the Portland office of Thompson Vaivoda & Associates to discuss conceptual planning processes. Harlan also commented that a request would be made to extend the Second Street Extension permit issued by the Oregon Department of Transportation, which expires on December 31, 2004.
· Wasco Business Park Update: Construction has not been hampered by the onset of rainy weather. Weekly construction meetings continue and Harlan reported on the good working relationship between the project manager, Marc Betts of DiLoreto Architects, and contractor Don Betz, of Betz Construction. Parties interested in the property continue to contact the Port.
· Big 7/College Update: President Bohn stated there was a need to schedule a meeting to discuss parking with the Port, City, College, and Sprint in attendance.
· Fall Planning Session: The Strategic Planning Session, which begins at 11:00 a.m. on November 2, will include discussions on the waterfront development and a staff recommendation on the final Airport Master Plan as well as asset management and performance. The regular meeting of the Port Commission will follow immediately upon conclusion of the planning session.
· Other: Executive Director Harlan reported that federal funds are available for Department of Environmental Quality assessments of property not owned by the applicant, i.e. Nichols Boat Basin. Harlan informed the Commission he would be attending the Pacific Northwest Waterways Association annual meeting in Portland
November 3-5, 2004 and that he expected a dues increase would be approved, effective for the January 2005 and July 2005 dues billings.

b) Other:
· Real Estate Committee: President Bohn had no further comments to add from the Work Session discussions.
· Finance Committee: Finance Manager Linda Shames stated there was a vacancy on the Finance Committee. President Bohn asked for volunteers, and there was Commission consensus to appoint Commissioner Watson as Bill Lyons's replacement on the committee.
· Urban Renewal Committee: Commissioner Streich, the Port's representative on the City's Urban Renewal Committee, commended Bob Francis on the recent meeting in which representatives from the utility companies and Front Street landowners attended.

5. ACTION ITEMS:

a) Waterfront Consultant Resources:

Motion: Move to approve a budget not to exceed $50,000 for waterfront resources.
Discussion: The Commission commented that the process should not be stopped, but expressed concern with the money being spent and stated there was a need to tighten the waterfront resources tasks and budgets.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

b) Wasco Street Office Building Change Order: State building codes did not require that an interior sprinkler system be installed; however, during the building review process the City determined that three "safe rooms" would be required for fire shelter before the final building permit sign-off would be approved.

Motion: Move to approve Wasco Office Building Change Order #1 for construction, if necessary, of three Rescue Assistance Areas in an amount not to exceed $17,200.
Discussion: Staff was directed to verify the construction requirement.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

c) Bridge Lift Span Guardrails: After discussion, there was Commission consensus that action would not be taken at the present time. Replacement of the existing lift span rails, which meet current Federal safety standards, would have been a cosmetic fix due to the aesthetic difference of the rails installed with the new deck.

d) Accounts Payable: The invoices presented for payment by the waterfront consultants are outside the Scope since the contracts expired August 31, 2004; however, Finance Manager Linda Shames commented that the dollar amounts were within the authorized not-to-exceed limits.

Motion: Move to approve Accounts Payable to Richard Leonard in the amount of $1,968.02; and Richard Hill Associates in the amount of $6,620.00, for a total of $8,588.02.
Discussion: The Commission reiterated their concerns regarding the consultants' work.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

6. ANNOUNCEMENTS: None.

7. EXECUTIVE SESSION: None.

8. ADJOURN: President Bohn adjourned the meeting at 7:45 p.m.

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AIRPORT ADVISORY COMMITTEE
October 20, 2004
Airport FBO Office

Attending: Members Richard Clarke, Ed Drew, John Benton, Anne Yannotti and Felix Tomlinson; Port Commissioners/Member Hoby Streich and Fred Duckwall; and Port Staff Mike Doke. Guests: Denny Kindig.

Committee Chair Mike Doke opened the meeting at 3:10 p.m. He explained the meeting's purpose was to review the draft Airport Master Plan and recommend next steps. He distributed one section from the draft plan from the "Introduction and Conclusions" chapter which addressed Airport Layout Plan Report Conclusions and Airport Layout Plan Report Recommendations. He also distributed the draft Airport Layout Plan page and proposed projects for 2005.

Doke explained main projects identified in the Airport Layout Plan (ALP), including:
Moving toward Design Group II designation; shifting Runway 25/7 east and abandoning the section of Orchard Road east of Runway 25; identifying properties west, north and east of the airport for acquisition, including the northern edge of property southeast of the airport for potential acquisition; and moving the FBO Building and associated operations to the airport's north end. He noted that once Federal Aviation Administration adopts the ALP, identified capital projects would be eligible for FAA grants. The Port also could present the Airport Master Plan to the Hood River County Planning Department so that it may be approved, a step that could incorporate the plan into the county's comprehensive and transportation plans.

The draft Airport Master Plan proposes shifting the runway to the east, which would mean vacating the portion of Orchard Road east of the airfield. The draft ALP identifies potential property acquisitions on the airport's southeast side. A portion of those residential properties could be acquired to accommodate a new taxiway. These possible land acquisitions and the runway shift could create concerns among airport neighbors, and everyone agreed neither would occur without community support and willing property sellers.

Hoby Streich asked if the aviation industry and aircraft have changed. Denny Kindig noted that jets could land on smaller runways but added that an air taxi service could be a future service here. A longer runway could accommodate both jets and air taxis. Jets have become lighter and quieter, which should ease runway expansion concerns. It was noted that aviation companies, including Advanced Navigation and Position Corporation plus the Insitu Group, are successful here and may require a healthy airport to thrive in the future.

Anne Yannotti noted the airport needs these improvements: Better signage along the taxiway, an upgraded runway lighting system and a Precision Approach Path Indicator (PAPI).

Doke noted one potential property acquisition, the Terry Brandt land west of Twin Peaks restaurant, is not listed on the ALP and he will request it be included. The committee remains interested in purchasing Brandt's property north of the airport and encouraged discussions with Mr. Brandt.

Doke asked if the committee would prefer taking the Airport Master Plan through the county planning process. He met with County Planning Director Mike Benedict in September to discuss this, and Mr. Benedict encouraged the Port to hire a consulting firm to guide the process. John Benton observed that an independent, experienced consultant could help the process. There was consensus to follow through with the planning department, and members suggested the Port contact David Miller and Aron Faegre to get a consultant cost estimate. This recommendation will be taken to an early November Port Commission planning session for final direction.

The meeting was adjourned at 4:40 p.m.