Minutes of November 1, 2005        
Regular Session Meeting
Expo Center Conference Room 7:00 P.M.

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

Absent: Commissioner Don Hosford

Media: None

1. CALL TO ORDER: President Bohn called the regular meeting to order at 7:08 p.m.
a) Modifications, Additions to Agenda by Staff: None.

2. INFORMATION-COMMUNICATIONS:
a) Guests: None.

3. PUBLIC COMMENT: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the October 18, 2005 strategic planning work session/regular session meeting minutes.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

5. EXECUTIVE DIRECTOR'S REPORT:

· Bridge: David Harlan, Executive Director, reported that Christie Constructors, the bridge redecking contractor, had provided a courtesy copy of the Letter of Demand mailed to the Oregon Department of Transportation (ODOT) for funds in upwards of $331,000 being retained by ODOT related to an archeological issue not controlled by Christie.
· Waterfront Industrial/Planning: The first allotment of pipe to be used in the Second Street Improvement Project has arrived and is being stored at the UTS Portsite yard. Harlan also reported that staff continues to work with the Oregon Economic & Community Development Department (OECDD) for investment grant dollars for the project. The City's wastewater treatment plant "odor control evaluation and pilot testing" study was provided to the Commission.
· Waterfront Recreational: Details of the October 31 waterfront recreation committee meeting will be provided under Commissioner, Committee Reports.
· Wasco Business Park: A sale agreement transaction will be considered during Action Items. Harlan reported a payment resolution on the Renaissance Corporate Services (Humanities) sound booth is close at hand, and once resolved a lease amending the move-in date will be finalized.
· John Weber Business Park: A sale agreement transaction will be considered during Action Items.
· Airport: The Port is in receipt of a form letter from the Department of Environmental Quality regarding the spray operations at the airport. A CPI adjustment for 2006 T-Hangar rates will be discussed at the November 15 meeting. The Orcutt house was vacated the end of October and April 15, 2006 is the date targeted for either removal or destruction. Staff will wait until after the first of the year to begin the process of declaring the property as surplus.
· Other: No discussion.

6. Commissioner, Committee Reports:
· Waterfront Recreation Committee - President Bohn reported on the October 31 meeting, with discussions focused on improvements to the Hook, rates and procedures for qualifying the teaching schools in 2006, and 2006 moorage rates. A detailed report, with associated Action Items, will be provided for the November 15 Commission meeting.
· Urban Renewal - Commissioner Streich reported on the City's urban renewal project, which is now complete through Fourth Street, with renewal to Twelfth Street anticipated to be completed by 2012.

7. ACTION ITEMS:

a) Second Street Improvement Project: Five bids were submitted for the project, three of which were Columbia Gorge area contractors, one from Bend, and one from Portland. KPFF Consulting Engineers reviewed the bids in detail and recommended the bid be awarded to the low bidder. Linda Shames, Finance Manager, commented on reduced mobilization costs for the local bidders as one reason why four of the five bids came in under the engineer's estimate.

Motion: Move to award the Second Street Improvement Project to bidder Mid Columbia Paving in the amount of $445,484.50.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

b) Wasco Business Park Change Orders: Finance Manager Linda Shames noted the five change orders being considered for approval are the final orders for the Renaissance Corporate Services (Humanities Software) lease space.

Motion: Move to approve Wasco Building Change Order Nos. 29, 34, 35, 36, and 37 in the total amount of $5,962.11.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

c) Wasco Business Park Sale Agreements: Executive Director Harlan and Marketing Manager Mike Doke reported that one 'Sale Agreement and Receipt for Earnest Money' has been signed by the purchaser. Upon Commission approval, Harlan reported there would be a 90-day due diligence period after which closing shall take place. Paperwork is out on three other transactions, which should be ready for Commission approval at the November 15 meeting.

Motion: Move to accept the Sale Agreement and Receipt for Earnest Money with Columbia Area Transit in the amount of $215,708.00 for Wasco Business Park Lot 3.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

d) John Weber Business Park Sale Agreements: Executive Director Harlan and Marketing Manager Mike Doke reported that one 'Sale Agreement and Receipt for Earnest Money' had been signed by the purchaser. Two pending transactions are expected to be brought to the Commission on November 15 for approval. Attorney Jaques commented that with all agreements the Port has a buy-back option should construction not begin within a year after final closing.

Motion: Move to accept the Sale Agreement and Receipt for Earnest Money with David and Traci Lucas in the amount of $62,302.00 for John Weber Business Park Parcel 3, Lot 8.
Move: Watson
Second: Streich
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

e) Waterfront Market Analysis Update - Hovee Proposal: The E. D. Hovee & Company, LLC proposal memorandum dated October 28 was approved in principle; however, the Commission believed some minor changes were warranted before approving Hovee to proceed in updating his October 2004 'Waterfront Real Estate Market Assessment' report and providing a more in-depth assessment of market potentials. Executive Director Harlan requested input from the Commission in preparation for his contact with Eric Hovee.

f) Waterfront Tax Increment Financing Analysis Update - Tashman Proposal: A proposed scope of work was provided for the purpose of updating the financial analysis of tax increment financing (TIF) for a potential urban renewal plan for the waterfront industrial property. President Bohn stated the objective was to identify whether or not a TIF plan was feasible. Commissioner Streich questioned if there had been further dialogue with the City to which Executive Director Harlan responded that upon completion of the industrial scenario study the information would be presented to the City. Commissioner Watson recommended that discussions with Port staff be amended to include discussions with City staff.

Motion: Move to approve the proposed Scope of Work with Tashman Johnson LLC, in an amount not to exceed $4,520.00, for a Tax Increment Financing Analysis.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

g) Accounts Payable: Linda Shames, Finance Manager, explained that the property taxes presented for approval were those only in excess of $5,000 and that the tax payments would be passed on to the tenants for reimbursement to the Port.

Motion: Move to approve Accounts Payables in the total amount of $35,714.77 for payment of property taxes to Hood River County for the Big 7, UTS Portsite, and Homeshield properties.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Absent: Hosford
MOTION CARRIED

8. ANNOUNCEMENTS/COMMMMISSION CALL: The Port and the City received a letter from Hood River County Administrator Dave Meriwether proposing the creation of two 9-member work groups to deal with affordable housing and industrial land. The Port has been asked to appoint three members to each work group, one of which would be a member from the governing body. Commissioners Duckwall and Watson stated an application and interview process was unnecessary. There was Commission consensus to bring lists of names for discussion at the November 15 meeting.
Staff announced that Port tenants Gorge Networks and Columbia Gorge Community College (Big 7 Building) would be hosting the Chamber's "Business After Hours" on Thursday, November 3 from 5:00 to 7:00 p.m.

9. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property at 7:50 p.m. Upon conclusion of Executive Session, the Commission was called back into Regular Session at 7:58 p.m. No action was taken as a result of Executive Session.

10. Adjourn. President Bohn adjourned the meeting at 7:58 p.m.

Minutes of November 22, 2005 Port of Hood River Commission Regular Session Meeting
Expo Center Conference Room
7:00 P.M.

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

Absent: None

Media: RaeLynn Ricarte, Hood River News

1. CALL TO ORDER: President Bohn called the regular meeting to order at 7:05 p.m.
a) Modifications, Additions to Agenda by Staff: None.

2. INFORMATION-COMMUNICATIONS:
a) Guests: None.

3. PUBLIC COMMENT: None.

4. APPROVAL OF MINUTES: Commissioner Streich requested a correction regarding his Urban Renewal report stating that the renewal to Sixth Street, and not Twelfth Street, was anticipated to be completed by 2012.

Motion: Move to approve the November 1, 2005 regular session meeting minutes as amended.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Streich, and Watson
Abstain: Hosford
MOTION CARRIED

5. EXECUTIVE DIRECTOR'S REPORT:

· Bridge: David Harlan, Executive Director, reported that HNTB, the Port's bridge engineering firm, is preparing a cost analysis for the toll plaza upgrade. The as-yet unresolved archeological issue associated with the bridge redecking project is entering its second year.
· Waterfront Industrial/Planning: Attorney Jaques and Roy Gaylord of Terra Surveying will be coordinating the proper sequencing of tasks to finalize the Hood River Distillers and Lot 6 transactions. As an informational item, the Luhr Jensen lease will need to be amended because of a name change to LJS Endeavors. The Commission will need to provide additional input before waterfront-related Scopes of Work can be finalized by Jeff Tashman on a tax increment financing analysis, and by Eric Hovee on an industrial market study analysis. President Bohn recommended that Tashman and Hovee be invited to a work session to discuss the project parameters.
· Waterfront Recreational: An increase for 2006 moorage rates is on the agenda as an Action Item. A draft Request for Proposal for 2006 kiteboard instruction concessions was provided for the Commission's review. Commissioner Watson commented an award date was omitted from the RFP, which staff will correct. There was Commission consensus that the document was ready for distribution to the existing concessionaires. Prior to the submittal deadline, a determination will be made as to the review process.
· Wasco Business Park: A sale agreement transaction will be considered during Action Items, and Executive Director Harlan noted that two additional transactions are pending. Renaissance Corporate Services (Humanities) is currently reviewing their amended lease. $143,138.24 in Immediate Opportunity Funding was received for infrastructure improvements.
· John Weber Business Park: A sale agreement transaction will be considered during Action Items.
· Airport: The Port's response to the Department of Environmental Quality's request for information regarding the spray operations at the airport has been submitted. Staff is working on a new contract for the FBO, and an increase for 2006 T-Hangar rates is on the agenda as an Action Item.
· Other: The Commission discussed the City's proposed Intergovernmental Agreement (IGA) for Police, Fire and Ambulance Services, which requested an annual compensation of $35,000. Executive Director Harlan stated that he met with Police Chief Ludwig to discuss enforcement of Port Ordinance No. 22, and it was Ludwig's suggestion that an IGA may be necessary. Attorney Jaques commented that he understood the intent of an IGA would strengthen enforcement of Ordinance violations and clarify the disbursement of fines collected. Jaques stated the City's proposed draft has gone beyond that perspective, and commented that he would need additional time to review the draft in order to provide the Commission with more direction. President Bohn stated she was overwhelmed by the IGA and questioned if discussion should be continued in a work session at a future meeting. Commissioner Watson commented the City should be invited to that work session. Commissioner Hosford stated that the City had definitely put a lot of effort into the proposed IGA, and he asked if similar IGA's had been proposed with other entities, such as the library, or schools. Commissioner Duckwall asked if there was any historical precedence, to which Harlan responded that Special Districts Association of Oregon knew of no other such agreements.

6. COMMISSIONER, COMMITTEE REPORTS: President Bohn announced that she had requested written reports from Commissioners who attend conferences. Bohn then asked for Commissioner Streich's report on the League of Oregon Cities annual conference that he attended November 11-12, 2005. In addition to his written report [copy attached] Streich reported meeting with OMI representatives to discuss the odor problems at Hood River's wastewater treatment plant. OMI believes that in-house resources may be available. Streich reported that he has since met with City Manager Bob Francis and Hood River OMI employees and a task force of the three entities may be established to address the odor issues.

7. ACTION ITEMS:

a) & b) 2006 T-Hangar and Marina Rate Increase: Staff has recommended a 3.4% increase in the 2006 T-Hangar and Marina rates based on the inflation index used by the State of Oregon to determine minimum wage each year (the August-to-August increase in the U.S. City Average Consumer Price Index for All Urban Consumers for All Items, as prepared by the Bureau of Labor Statistics as stated in the Oregon Revised Statutes Chapter 653). Commissioner Watson asked if any consideration had been given to vary the rates of out-of-district tenants. President Bohn stated the Waterfront Recreation Committee had discussed the idea but felt the timing was not right to make a politically charged recommendation because White Salmon residents, for example, feel entitled to in-district rates because of the bridge toll paid in order to access the marina. Laurie Borton, Marina Manager, stated that approximately 75% of the current moorage tenants reside within the Columbia Gorge corridor, from Cascade Locks to Goldendale and from Stevenson to Moro.

Motion: Move to approve a 3.4% increase in 2006 T-Hangar and Marina rates.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

Linda Hull, Executive Assistant, called attention to the second part of the Marina Rate increase, in which the Waterfront Recreation Committee discussed the long waiting list for Eastside-C non-long boat slips and charging a higher rate for the most sought-after slips. As a means to encourage movement of the waiting list, staff recommended an additional 15% increase for these more desirable slips.

Motion: Move to approve an additional 15% in 2006 Marina rates for Eastside-C non-long boat slips.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

c) Wasco Business Park - Renaissance Learning, Inc. Lease: This agenda item was tabled.

d) Wasco Business Park - Sale Agreements: Executive Director Harlan reported that one agreement was ready for Commission action and that two sales transactions are still pending. Attorney Jaques commented the Agreement provides an option to repurchase if construction is not begun within 12 months. Commissioner Streich asked for a clarification to which Jaques responded that the buyer had twelve months to obtain a building permit and commence construction, otherwise the Commission could consider the repurchase option.

Motion: Move to accept the Sale Agreement and Receipt for Earnest Money with Dean Cameron in the amount of $427,763 for Wasco Business Park Lot 1.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

e) John Weber Business Park Sale Agreements: Attorney Jaques commented that the Action Item being considered for approval did not contain the repurchase option, as the agreement was a simple sales agreement.

Motion: Move to accept the Sale Agreement and Receipt for Earnest Money with Hood River County in the amount of $125,773 for John Weber Business Lot 4.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

f) Waterfront Industrial - Hood River Distillers Closing Extension: An extension agreement was prepared because the survey required under the September 26, 2005 Purchase and Sale Agreement had taken longer than anticipated to obtain.

Motion: Move to approve the Closing Extension Agreement with Hood River Distillers, Inc. from December 1, 2005 to February 1, 2006.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

g) Appointments to County's Affordable Housing, Industrial Lands Work Groups: President Bohn and Commissioner Watson stated they had both given some thought to citizen appointments to the committees but neither had any confirmed names to offer. Watson stated that she would tentatively serve on the Affordable Housing work group, but her commitment depended on the time of the meeting because it could conflict her with business hours; Commissioner Streich volunteered to be named as an alternate to the Affordable Housing work group. Commissioner Duckwall volunteered for the Industrial Lands work group. Marketing Manager Mike Doke volunteered to represent Port staff on both groups.

h) Accounts Payable: None.

8. ANNOUNCEMENTS/COMMMMISSION CALL: Commissioner Streich commented that teaching concessionaires at the Hook had not picked up all of their mats. Mike Doke, Marketing Manager, stated that he would make follow-up calls to the schools. President Bohn commented on a rumor that a task force was being formed through the Chamber to study the feasibility of purchasing the Expo for community events. Commissioner Watson stated that she had heard only that the Chamber was waiting until after the first of the year to form a committee to look at event relocation possibilities and had heard nothing about a task force or purchase of the building.

9. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property; and ORS 192.660(2)(f) Exempt Public Records at 7:45 p.m. Upon conclusion of Executive Session, the Commission was called back into Regular Session at 8:40 p.m. The following action was taken as a result of Executive Session.

Motion: Move to begin the process to obtain two appraisals and engineering surveys on two waterfront properties.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

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Motion: Move to approve the Severance Agreement with the Executive Director and authorize the Commission President's immediate signature on the Agreement.
Move: Watson
Second: Duckwall
Discussion: There was Commission consensus to continue discussion during a Work Session at a December meeting regarding the search for an Interim Director and executive search for a replacement Executive Director.
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

10. Adjourn. President Bohn adjourned the meeting at 8:55 p.m.