Minutes of October 18, 2005        
Work and Regular Session Meeting
Expo Center Conference Room 12:00 P.M.

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

Media: None

President Sherry Bohn called the fall strategic planning work session to order at 12:20 p.m. for the annual review of property/asset performance and other issues for the Port of Hood River. The regular session immediately followed the work session.

1. Introductions/Strategic Planning Overview: Executive Director David Harlan today's work session will review asset performance first and then asked the Commission to focus on development issues of the waterfront immediately following.

2. Asset Performance: Finance Manager Linda Shames reported on the following performance of assets:

BRIDGE: Traffic counts, as expected, were down 10-13% last fiscal year during construction. ROI dropped with the first of 15 annual bond payments this year. Surplus bond funds are available to apply to the tollhouse project as the Port transitions to electronic tolling and approach upgrades. Commissioner Watson suggested the public be informed of the breakdown of the 75-cent toll and where it goes throughout the district in support of public amenities and facilities. Shames reported that Ed Hoyle, HNTB, will return to bring resolution to the archaeological issue from the redecking project. Shames said the bridge will have an underwater inspection this fiscal year. Harlan stated because the bridge is an important economic link to both sides of the river it is important to begin the study now of its replacement by the Port. This would provide a better understanding of the financial feasibility and options to ensure the crossing exists after 20 years. Consensus was to implement the study by the first of the year.

DIAMOND INDUSTRIAL: Big 7 Building will need a new roof this fiscal year. Occupancy is at 80% with 4,900 square feet of vacant space. The Port will continue to explore parking options for tenants.

WATERFRONT COMPLEX: Professional services for the waterfront last year included planning, legal, surveying, and appraisals including those on the park property. Homeshield will be moving out of their building at the end of the year and funds will have to be expended for future tenants. UTS Portsite's is 50% vacant with three tenants on the first floor; the City wastewater treatment plant's odor remains a problem for tenants. The Jensen land lease will have a 5-year CPI adjustment in June of 2006.

The Hook road will need extensive baserock work next spring. The work will have to be compatible with Goal 5 requirements and runoff is an issue. Commissioner Watson asked that the costs of a pervious surface be investigated so that the waterfront areas would be attractive year around. The odor problem from the treatment plant was acknowledged and tabled until discussion of waterfront planning. Commissioner Duckwall asked that staff pursue the City on the cost of the solution. Both the Hook and the Spit will be considered for rezoning from Industrial this next year.

The Expo Center Building's annual utilities exceed its revenues by $7,000. As part of the waterfront planning, the Expo Center will be considered for redevelopment into business or industry use.

The recreational sites remained revenue-stable. The Port did deferred maintenance improvements to the Event Site beach area for the national windsurfing events. The daily parking receipts for the Event Site and the Spit show a trend to increased kiteboarding usage and decreased windsurfing. Cruise-ship dock usage remains the same as last year. Big ships cannot use the current configuration of the dock and channel. Commission discussed the economic benefit of the cruiseships and it will be analyzed as part of a study on community's benefits from all of the Port's assets. The Port will proceed with a structural analysis of the commercial dock.

MARINA PARK/MARINA: The Marina revenue covers its operations at this time without reserves for expansion or replacement. For the first time, the Port had a long waiting list for boat slips beginning the 1st of July. The Recreation Committee may want to discuss a change in the fee structure of slips desirably located. The Marina Center Building is vacant and not well designed for a change of use from boat operations.

AIRPORT: The airport added a $3,000 AWOS maintenance contract to its annual expenses this year. There are 18 on the waiting list for hangars.

JWBP: John Weber Business Park has two lots left for sale or development. Three sales are pending. There is 2,500 square feet available in the former timber incubator building.

WASCO BUSINESS PARK: The Wasco Business Park property has four pending sales and the ROI will meet the 5% goal next year. Harlan indicated the light industrial zoning criteria may possibly change by state administrative rule this year to allow for more flexibility for uses in this space.

President Bohn called a recess at 2:05 p.m. The work session was called back into order at 2:15 p.m.

3. Asset Management and Mix:

Bridge: Frontage Road Crossing: Harlan said the funds for the feasibility study will be available next year. He is in communications with other governmental agencies regarding right of way and maintenance issues. Harlan will pursue ODOT's local street funding program that may be a potential funding source. Consensus was to plan public information forums regarding the project in conjunction with the tollhouse plaza/electronic tolling improvements to further public understanding of the projects.
Marina Park: Harlan stated Goal 5 may preclude any cell tower placement in the Marina area, and its subsequent revenue stream. The Marina Center Building tenant scenarios were discussed. Shames reported the architect estimated the remodel could cost up to $350,000. Consensus was to give a prospective high-tech tenant until December 1 to complete a cost proposal for tenancy. Harlan referenced the information in a real estate article regarding the cycle of absorption of properties. Commissioner Watson stated the viniculture here in the region could be encouraged to flourish and may be possible tenants of the waterfront. President Bohn asked if the economic impact study could cover all Port assets and properties, not just recreational economic impact. Harlan said that is the typical study Ports do and staff will pursue this study.

Waterfront Development: Discussion was held regarding the effects of the odor of the wastewater treatment plant on waterfront property. Commissioner Streich asked City Councilor Ann Frodel if there was discussion at the City Council level on this issue. Frodel said the City Council has not discussed this issue because the City has other financial priorities. Bohn asked if staff had seen the most recent study on the situation and if there was a "fix" floating around? Harlan said he had not seen it but that City Manager Bob Francis indicated that it was still the privy waste that was causing the most severe odors. Consensus was for staff to approach City staff regarding the study and possible ways to pay for the necessary proposed solutions.

Harlan said Tashman previously did an analysis of increment financing for mixed-use and could provide an updated analysis on light industrial development to discuss with the City. Attorney Jaques said an intergovernmental agreement could delineate the financial details. Consensus was that the wastewater treatment plant is the number one action item for waterfront development and that developing a visual conceptual master plan was second.

Harlan discussed the critical issue of shortage of industrial lands to accommodate new businesses and the expansion of existing businesses. The Port's waterfront is the largest parcel of Port developable land inventory. Harlan recommends approaching this development in a similar way that Wasco Business Park was flexibly developed, laying out lots and providing Covenants, Conditions & Restrictions (CC&Rs) to control design issues throughout the site planning process. Studies indicate the absorption rate is 14 acres per year of industrial land so this area potentially could be full in two years. Harlan believes maintaining flexibility is critical to meeting the quickly changing market. The infrastructure is already in place for a business park and with the new 2nd Street completion this spring, the property will be marketable. Harlan outlined the steps and resources needed in the coming year: Market Analysis: A review and update of the Hovee's mixed-use market analysis can focus on industrial uses and some office/services mix. Conceptual Plan: Parcel layout and infrastructure can be drawn and should include connection to Frontage Road Crossing, if proven feasible. Site Analysis: Review of infrastructure, engineering and environmental studies are needed. Financial Pro Forma: Pro forma will be based on conceptual plan projecting development costs, cash flow and profitability. CC&Rs: Legal staff will develop appropriate CC&Rs applicable to land purchasers and lessees. Marketing Plan: Plan should focus on local demand and growth of existing businesses or those wishing to locate here. Consensus was to follow these planning steps using outside engineering, market analysis, planning and other services, combined with the Port's staff and legal counsel, to guide business park/light industrial development at the waterfront. Commissioner Duckwall commended Harlan for his in-depth and well-presented analysis.

4. Federal Funding Priorities/Five-Year Capital Plan:
Harlan reported this year's priorities would include Windmaster because of the effect that project would have on industrial lands creation around the airport. The Odell wastewater treatment expansion and the waterfront park development are also considerations. Bohn stated that Ball Janik's access to the congressional delegation is excellent and represent the City, County and Port's projects well. Bohn mentioned that congressional staff questioned why the waterline funds were not expended yet from four years ago. The Port contributed $150,000 match to that grant that increased water capacity to the waterfront and the project has not been completed.

5. Other Policy Issues:
Bohn asked about the regional strategy of airport development. Commissioner Streich said the airport is recreational at the present time but in the future, a Type 2 airport that could handle small jets needing a longer runway is outlined in the 20-year master plan. Demand for a longer runway would dictate if those upgrades would occur. Harlan told the Commission that the Port received a letter of request for DEQ for more information on the Aero-Spray cleanup and staff would be following up on that.

Watson asked about the kiteboard school situation. Harlan said the Waterfront Recreation Committee will invite the schools to participate at its next meeting this month. Mike Doke said there are ideas to discuss such as limiting their spaces, charging more for their permits, and/or implementing a request for proposals process.

At 4:35 p.m., President Bohn called a short recess before the start of the regular meeting.

1. CALL TO ORDER: President Bohn called the regular session to order at 4:45 p.m. Executive Director David Harlan requested an additional agenda Action Item regarding KPFF's increase in fees for the 2nd Street Improvement Project.

2. INFORMATION/COMMUNICATIONS: None.

3. PUBLIC COMMENT: None.

4. APPROVAL OF MINUTES:

Motion: Move to approve the September 26, 2005 (work/regular session) meeting minutes as corrected by Commissioner Watson.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

5. EXECUTIVE DIRECTOR'S REPORT: Harlan reported the County presented its industrial lands inventory report and its housing study report earlier in the week. They will be appointing a 9-member board for each issue and would like representation from elected officials. Harlan reported that he discussed Immediate Opportunity Funding with ODOT's David Kim and he indicated there may be funds available for the 2nd Street Improvement Project. Kim also told him the funds for Wasco Business Park street development were released this week to the City. Harlan reported that KPFF has requested an increase in their contract amount of $5,500 to cover the additional hours expended to obtain City approvals for the design due to recent changes in the City's requirements for storm water quality facilities, permitting process and discussions regarding the City's standard construction agreement. Other additional unplanned time was expended to modify the public improvement contract to ensure the new ORS language and the standard specifications were not in conflict.

6. Commissioner, Committee Reports: 1) Commissioner Hosford reported on the PNWA Annual Conference he and Harlan attended this month. Hosford said Senator Murray and Congressman Baird serve on transportation committees and told the attendees that PNWA is well-respected and a very effective organization at the federal level. Harlan said he met the new Army Corps of Engineers Commander who could speak to the Park Development Committee (PDC) on beach and groin work. Shames said she gave Parks Director Lori Stirn the name of Stu Cato and Andrew Janksky so the PDC could contact them for realistic costs and timelines on permitting for water work. Harlan told the Commission that the zebra mussel invasion is a real threat to the northwest as they come from the great lakes area on boats launching at public ramps. 2) Harlan reported that he, Mike Doke and Hoby Streich attended the Economic Development Conference in Eugene earlier this month. Streich stated that learning about the land certification program was interesting and discussed some site selection methods. Harlan said that site selectors typically look for and rate properties that are at least 25 acres, ready to go, and with no risk or appeal processes in sight.

7. ACTION ITEMS:
a) Linda Shames explained that Special Districts Association has proposed a two-year rate guarantee to maintain and stabilize our insurance rates.

Motion: Move to approve Special Districts Insurance Services Longevity Credit and Rate Lock Agreement.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

b) Linda Shames told the Commission that the Finance Committee approved the option of ordering and purchasing the pipe needed for the 2nd Street Improvement Project because the bidders could not get quotes good for more than two days and thus allowing the bid to proceed on schedule in conformance with Addendum No. 1. The bids are due October 19, 2005 at 2:00 P.M.

Motion: Move to ratify the order and purchase of pipe for the 2nd Street Improvement Project.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

c) Accounts Payable: None

d) KPFF's request for an increase in its contract was discussed

Motion: Move to increase the contract of KPFF Consulting Engineers for the 2nd Street Improvement Project in the amount of $5,500.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

6. ANNOUNCEMENTS/COMMISSION CALL:
a) Commissioner Streich said Mark Sweeney, site consultant, told of the importance of having demographical information on web sites. Mike Doke said CGEDA has a good website with all of the Port's information and the Port's website has links to it. Harlan said we are really small compared to what they look for; however, Cardinal Glass is here because of CGEDA information.
b) Commissioner Watson gave kudos to Port Services employee, Celestino Negrete, for completing the Portland Marathon this month.
c) President Bohn encouraged other Commissioners to meet Laurent Picard, new City Councilor. Bohn also reported she attended the Ford Institute again last weekend and they are finalizing a community-relevant project to complete.

7. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session at 4:55 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 5:45 p.m. No action was taken as a result of Executive Session.

8. ADJOURN: President Bohn adjourned the meeting at 5:45 p.m.

Waterfront Recreation Committee
Minutes
October 31, 2005
3:00 - 4:30 P.M.

Attending: Members Steve Gates, Michael Schock, Lori Stirn, Dennis Shypertt, and Ann Frodel; Commissioners Hoby Streich and Sherry Bohn; Staff Members: Dave Harlan, Mike Doke, Linda Hull; Guest: Diane Barkhimer, CGWA

Absent: Richard Sassara

1) Sherry Bohn opened the meeting at 3:10 p.m. with introductions.

2) Recreational Facilities Financial Overview Summary: Executive Director Dave Harlan explained the financials remains consistent with previous years and show approximately 3% negative revenue. Linda Hull will send out a report to the committee showing revenue/expense for all the recreational facilities as one whole with the notes from this meeting, if available.

3) Facilities: Issues - Information:
Event Site: In reviewing the parking receipts for the Event Site and the Spit, Steve Gates added the Event Site was impacted for three weeks of special events during the prime July/August time and should be part of the bigger picture. Linda will ask Linda Shames for a count of traffic, not just sales, and send it out with the meeting notes, if available. Steve said his business, Big Winds, did not see any decrease in the sport this year. Michael Schock commented that there are more improved sites in the region and that may also be a factor. Both believed sailing in the corridor was the best ever this year for wind. Steve said his customers comment positively on the Event Site and appreciate the amenities. The Park Host volunteer experience was discussed and overall consensus was that it was a good idea, helping the parking, dog problems, and thefts. It was suggested that the person be better identified, possibly with a Port shirt/hat and also be more pro-active with RV parking in designated spots. Steve commented that the national events were well-run and well-publicized and that even though it was disruptive for local sailors, it was a plus for the exposure it brought to Hood River. It was asked if maintenance could decrease the water schedule for the grassy area as it seems to be very wet.

Sherry asked if the committee felt the Event Site should be a dedicated site for windsurfing/water events? Historically, it was built specifically for that purpose because that was before there were other water sports here. Lori Stirn said the addition of the Lot 6 park could accommodate some other non-water sports events, more family-park oriented. The consensus of the committee was that the Event Site should remain for water sport events, not weddings, etc.; Marina Park area can be used for those types of events.

Hook: Steve commented the Hook is getting lots of use due to the windsurfing schools congregating there now. Diane Barkhimer said the CGWA organization will continue to do access-oriented projects along the banks, such as planting trees and improving ramps. Harlan said they should run their plans by City Planning staff to ensure they meet the Goal 5 requirements. Harlan said both the Hook and the Spit will be undergoing a rezoning process this year. Diane also mentioned the Parks & Recreation students would like a changing facility by the portapotties as part of their "wish list" that includes more picnic tables, drinking water, flush toilets, showers, etc. Diane commended Joe Pounders and his Port maintenance crew for being so helpful and doing a great job. Mike asked if all the carpet was picked up from the school activities? Diane said there is still some carpet on the ground.

Spit: The parking situation and school location was discussed. Mike explained that the schools agreed at a recent meeting to move off of the north end leaving that area for public access and limiting school space to 10x20 spots. Dust abatement solutions are being explored; it was asked if bleachers could be set out in that area for spectators. There are currently eight schools set up at the Spit. Steve expressed his opinion that it is not workable for that many because of the constraints of the size of the area. Steve said there are concerns about the quality of instruction. Consensus of the committee was that the $300 per month concession fee was too low and there were too many schools. The fairest way to manage the concession would be to implement an RFP (Request for Proposal) process for vendors. Lori made a motion to increase the concession fee to $500 per month and limit the number of kiteboarding vendors to five. Steve seconded. Discussion was held regarding the number of allowed schools. Lori thought five vendors should be the goal but the Port could start with seven, which was the suggestion of the schools at their meeting. The number could be reduced through attrition with the goal of five ultimately. Lori amended her motion to reflect this. Steve seconded the motion. Committee members all voted aye. Motion passed. The recommendation will be taken back to the Port Commission.

Marina: Harlan explained the usual CPI adjustment will be made to marina tenants this year; however, due to the waiting lists for eastside and longboat slips the committee was asked if an increase in those "prime" slips should be considered. Consensus was yes, market rates should apply to those more valued slips; staff was asked to compile a survey of other marinas and their rates for comparison, and come back with the information at the next meeting. Ann Frodel suggested the Port charge more for "out of Port District" tenants because their taxes do not help support the public facilities. The fuel pump is up and running. Linda mentioned the events were down this year; and the Port had no food vendors. The feedback from prior vendors is that they cannot make enough money to justify the costs.

Cruiseship Dock: An inspection will be made on the pier itself for structural integrity.

4) Other: Lori said the Lot 6 park design RFP is due and she would appreciate any input from the Port and the Waterfront Recreation Committee, in particular regarding purposes and uses at the park.

5) Next Meeting: to be determined

Meeting was adjourned at 4:35 p.m..