Minutes of September 6, 2005 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: None

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:

Motion: Move to approve the August 16, 2005 regular session meeting minutes.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

5. EXECUTIVE DIRECTOR'S REPORT:

· Bridge: David Harlan, Executive Director, reported that an opinion editorial on the proposed Frontage Road Crossing would be drafted for the media; and the span lock and approach resurfacing jobs will be bid in Spring 2006.
· Waterfront Industrial/Planning: The City's approval of the Second Street realignment project has been delayed due to new process procedures, which are geared toward private developers rather than public agencies. Harlan reported the approval is close and that the project completion date is now estimated for the end of May 2006. Harlan also reported that he and Bob Francis, City Manager, had discussed the wastewater treatment plant and that another meeting will include the U.S. Forest Service, which has been identified as a contributor to the odor problem because of their privy waste deliveries. Francis indicated that capping the tanks might resolve the odor problems--a solution that was proposed a couple years ago. Harlan also commented that he would meet with the Odell Sanitary District to identify whether or not their system would have the capacity to receive privy waste deliveries without impacting current Odell customers. A GANT chart detailing project elements, timelines, and key resources was introduced, which Harlan stated would be discussed in further detail during Executive Session.
· Waterfront Recreational: The marina fuel pump concession with Hood River Shell began operations Labor Day weekend, after three months of intense labor and materials procurement that were required to bring the facility up to a safe and operable level. With the start of a new school year, the booths at the Event Site and The Spit are now closed. Harlan reported the City would like to enter into an Intergovernmental Agreement (IGA) in order to enforce Port Ordinance No. 22. Attorney Jerry Jaques stated that an IGA would clarify details such as distribution of the fines associated with violation citations.
· Wasco Business Park: Terra Surveying is finalizing plats, which will allow pending transactions to move forward. One Action Item for Commission consideration is approval of the Covenants, Conditions, and Restrictions (CCRs).
· John Weber Business Park: Harlan reported that Real Estate discussions involving pending transactions would be discussed in Executive Session.
· Airport: A new maintenance agreement for the Automated Weather Observation System (AWOS) is in place and the contractor will be on site tomorrow. Forrest Orcutt has notified that Port that he will be moving into his new home the end of October, which means the house will need to be declared as surplus property before it can be removed from the Orchard Road property no later than mid-April 2006.
· Other: The Port newsletter should be distributed, pending the printer's production schedule, by the end of the week.

6. Commissioner, Committee Reports:
· Real Estate Committee - A confidential summary of the committee's meeting was provided for discussion during Executive Session. Harlan did point out, however, that a revised lease with Renaissance Corporate Services (Humanities Software) would need to be prepared because of leasehold improvements at the Wasco Business Park building that were requested by the tenant but paid for by the Port. Harlan also reported that the property transaction with Hood River Distillers was moving forward.
· Personnel Committee - As a result of the Commission governance special meeting, the committee met on August 30 to clarify the expectations of the Executive Director, Staff, and Commission. A "Plan of Action Recommendations" to track progress, beginning with the calendar fourth quarter 2005, was distributed by President Bohn who requested that any questions from the Commission be directed to her or committee members Duckwall and Harlan.

7. ACTION ITEMS:

a) Greyling Group Letter of Support: Executive Director Harlan commented on a meeting with Jim Schlemmer to discuss the U.S. Army Corps of Engineers (Corps) flowage easement and the impact of the proposed Frontage Road relative to the Nichols Boat Works basin property for which due diligence is being conducted by the Greyling Group. President Bohn recognized Andy Ball, who stated the proposed frontage road intended to take local traffic off Interstate 84 between Exits 63 and 64, is a key issue but that the Greyling Group is committed to working with the Port, now and in the future. Ball commented that the letter of support is a great first step. Commissioner Duckwall stated the letter as drafted was well written, and Commissioner Hosford was highly in favor of working together. President Bohn commented that the amendment or removement of a flowage easement would be a major shift for the Corps and questioned the probability. Schlemmer acknowledged that the Corps would be setting a national precedence in allowing the request on private land. Attorney Jaques commented the ground upland is fill and a portion of the property is submerged and questioned, under that scenario, if the flowage easement would be released. Schlemmer responded that it was his guess the flowage easement would not be removed. Commissioner Streich asked if the flowage easement was a part of the Greyling Group's due diligence or a deal breaker, to which Ball responded that it was part of their 60-day due diligence.

Motion: Move to approve the Letter of Support, to be signed by the Executive Director, requesting that the U.S. Army Corps of Engineers work with the Greyling Group's redevelopment of the Nichols Boat Works property by amending or removing the flowage easements.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

b) Wasco Business Park CCRs: Commissioner Streich commented on the value of the Approval of Plans section stating that, "so long as the Port owns a Lot no building or structure shall be erected or altered on any Lot until the plans and specifications for such building or structure, or alternation, have been submitted to and approved by the Port."

Motion: Move to approve the Wasco Business Park Covenants, Conditions and Restrictions (CCRs) dated August 31, 2005.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

c) Wasco Building Change Orders: Linda Shames, Finance Manager, reported that once paperwork has been submitted to the Port for two additional, but minor, price adjustments the Wasco Building project can be closed out.

Motion: Move to approve Wasco Building Change Order Nos. 20, 30, 31, and 32 in the total amount of $1,314.57.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

d) Strategic Plan Implementation: October 18 was determined as the tentative date for the Fall Planning session. Two GANT charts detailing fourth quarter 2005 workflow were referenced, which Commissioner Watson commented were extremely helpful to her and thanked Executive Director Harlan. Commissioner Duckwall stated the charts were good tools to illustrate the impact of decisions not being made on a timely basis.
President Bohn noted a Waterfront work session was indicated for the September 20 Commission meeting; however, Commissioners Watson and Hosford will be not available on that date. There was Commission consensus that the second meeting for the month be scheduled for Monday, September 26, with the work session beginning at 5:00 p.m.
Harlan pointed out that minutes from the August 16 meeting indicated a Commission consensus to review, upon the Executive Director's return from vacation, the formation and facilitation of a committee to discuss the potential displacement of community events. Harlan stated that he had talked with Hood River County Administrator David Meriwether, who suggested Bill Fashing, the county's Economic Development Coordinator; and with Hood River County Chamber of Commerce Executive Director Craig Schmidt, who had indicated an interest in the committee. Commissioner Duckwall suggested if Fashing was interested, then he should be pursued as a neutral, third party facilitator of the committee. President Bohn reiterated her opinion that the Port should not assume the role as facilitator of the committee. Commissioner Watson restated her concern with the event relocation committee being a Chamber sub-committee because it was her belief that Chamber members would not have the global perspective that was needed, that a Chamber committee would not meet often, or that a quorum would not be in attendance. Watson further stated that a Chamber committee would be unlikely to move any resolutions forward, and that persons of "higher level" would be necessary. Watson recommended that all entities involved, i.e., Port, City, and County, need to recommend committee members and stakeholders involved in the relocation of community events. Attorney Jaques reminded the Commission that if a Port ad hoc committee were formed, the committee would be required to conform with public meeting laws, which would not be the case if it were a Chamber sub-committee. Harlan stated he would continue discussions with Meriwether and Schmidt.
Harlan announced the Commission would meet in Executive Session to discuss the Lot 6 property donation.
No formal action was taken as a result of the Strategic Plan Implementation Action Item.

e) Radio Program Assignments: President Bohn requested the Commission take a proactive approach by volunteering to represent the Port, with a staff member in attendance, on KIHR's Mid-Columbia Today morning talk show the third Monday of each month. After discussion, the Commissioners signed up for the following six-month schedule:
Monday, September 19, 2005: two from staff
Monday, October 17, 2005: President Bohn + one staff
Monday, November 21, 2005: Commissioner Streich + one staff
Monday, December 19, 2005: Commissioner Watson + one staff
Monday, January 16, 2006: Commissioner Duckwall + one staff
Monday, February 20, 2006: Commissioner Hosford + one staff

f) Accounts Payable: None.

8. ANNOUNCEMENTS/COMMMMISSION CALL: President Bohn stated the "Commission Call" was an opportunity for each Commissioner to discuss items of interest but that action would not be taken at the present meeting. Commissioner Streich thanked Bohn, Executive Director Harlan, and Port staff for adding this item to the regular agenda. Commissioner Hosford had nothing to add at this time. Commissioner Watson commented that a Washington business owner had come to her with comments relayed by visitors who had crossed the Interstate Bridge and were told by the Toll Collectors that nothing was open in Washington. Watson restated her reply to the business owner was that the Collectors did not have time for detailed conversations with bridge patrons on what to do or see once they crossed the bridge into Washington. Harlan concurred with Watson's appraisal and stated that this was obviously regrettable but that perhaps some "ambassador" training could be included in the next Toll Collector meeting, or that staff could come up with a brief handout of travel information or directions to Visitors' Centers for both sides of the river for the booth attendants.
Commissioner Duckwall stated the intent of the Commission Call was a good way for topics to be introduced in an atmosphere that would not stifle discussion and since action could not be taken no "blind-siding" would occur.
President Bohn thanked staff for their concurrence with the changes to the meeting agenda. Bohn then commented on being at the Spit the previous Sunday and that it was her opinion that the schools looked good and that the Port had done a good job at the Spit. She was concerned, however, with the numbers of spectators walking around who were not aware of the safety issues. Bohn charged the Commissioners to take the time to go out to the Spit to see for themselves what she was concerned with.

Staff announced that Executive Director Harlan and Marketing Manager Mike Doke would be attending an Oregon Economic Development conference in Eugene on October 3-4, 2005.

9. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property at 8:13 p.m. Upon conclusion of Executive Session, the Commission was called back into Regular Session at 9:00 p.m. No action was taken as a result of Executive Session.

10. Adjourn. President Bohn adjourned the meeting at 9:00 p.m.

Minutes of September 26, 2005 Work Session/Regular Session Meeting
Expo Center Conference Room 5:00 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: None

Following a dinner break, President Sherry Bohn opened the meeting at 5:13 p.m. and the Commission was immediately called into Executive Session under ORS 192.660(2)(e), Real Property. Upon conclusion of Executive Session, the Commission was called into a Work Session at 5:38 p.m. No action was taken as a result of Executive Session.

1. WATERFRONT PLANNING. Development discussions regarding the light industrial zoned property focused on the key issues of selling or leasing waterfront parcels and the scope of master planning. Concerning the question of leasing or selling, President Bohn and Commissioner Duckwall discussed the need for being flexible. Duckwall commented that offers should be considered on their own merit, and that the Port can protect itself by proper due diligence and incorporating a "buy-back" protection clause into agreements. Commissioner Watson illustrated the flexibility issue by commenting on the Port of Portland's previous policy of not selling property, which has been modified to consider land sales if the parcel is not considered strategic property, or a sale allows the Port to achieve its mission. Watson also referenced a Seattle Times newspaper article regarding lost revenue opportunities by the Port of Seattle because property sales were not considered. Bohn commented the Commission will need to review numbers to see if deals pencil out, however, she was cautious about "build and they will come" scenarios. Commissioner Streich stated it was his opinion that the waterfront property would be better managed if the Port retained ownership and that the Commission should stay focused and keep the land.
With the discussion turned to the Master Planning process, President Bohn raised the possibility of merging parts of existing plans into a new plan thereby avoiding the cost of another consultant. Commissioner Duckwall responded by stating the facilitation of a master plan by a consultant would free up staff time. Commissioner Watson stated that she believed the Commission needed a better understanding of the companies the Port should be targeting to partner with or compliment existing businesses, and that the community expects the Port to take the lead. Watson suggested inviting local businesses to a meeting to educate the Commission on their networking needs. President Bohn agreed that a better understanding wouldn't hurt, and after discussion there was Commission consensus that networking with existing firms would be a valid search tool to begin to identify, target and market new businesses. Executive Director David Harlan also commented that expansion of existing firms is usually the most successful and cost effective approach to job creation for most communities; however, land sales to local companies may not pencil for them because the square footage cost may be too expensive, or because some firms may be outsourcing business functions. Watson then questioned if there was budget money for research to look at the rate of return on past investments, i.e. the economic impact that resulted in Port monies spent on recreation.

Harlan stated that he would prepare a GANT chart for the Commission's review at the October 18 fall planning session to illustrate the progression of potential development. The chart would list consultants and their areas of expertise and order of usage. Harlan stated he would also provide information on the past five years of state economic development leads that would have been a good fit for the waterfront.

President Bohn closed the Work Session at 6:20 p.m. and called the Commission back into Executive Session under ORS 192.660(2)(e), Real Property. The Executive Session concluded at 6:48 p.m. with no action being taken, and the Commission took a break before being called into Regular Session.

1. CALL TO ORDER: President Bohn called the regular meeting to order at 7:01 p.m.
a) Modifications, Additions to Agenda by Staff: President Bohn announced the addition of an Action Item regarding the Memorandum of Understanding with William Smith Properties, Inc.

2. INFORMATION-COMMUNICATIONS:
a) Guests: Park Development Committee (PDC) members Paige Rouse, Christine
Knowles, Joanie Thomson, and Jim Greenleaf were in attendance. Rouse addressed the Commission thanking the Port for its valuable donation of Lot 6 for a community park and stated that the imminent donation would be critical in fundraising efforts at local and state levels. Rouse commented that the committee was planning a public celebration to acknowledge the Port's gift. Knowles asked that the committee and Port work collaboratively as the Port's plans for a business park progressed so that infrastructure facilities might be shared, pathways linked, and services not duplicated. Knowles and Greenleaf then showed a conceptual plan illustrating design elements as required by the Intergovernmental Agreement, as well as a cut away on the bank for water access, and commented that the design was simple as to usability and costs. Knowles reported that although the committee was unsuccessful in its first attempts for Oregon State Parks grant funds, the committee had been invited to apply for the next round of funding in March of 2006. Knowles informed the Commission that the PDC had raised $225,000 in in-kind donations from one fundraiser and that Hood River Valley Parks and Recreation had earmarked some funding dollars as well as offering its expertise. Thomson stated that Parks & Rec had projected annual operation and maintenance costs of between $28,000 and $30,000 and that the PDC was considering a variety of community funding opportunities and maintenance labor options.
The Commission had no questions for the PDC members and thanked them for the update. Commissioner Watson personally thanked the PDC members for their remarkable work thus far and commented that she hoped the Commission would keep the PDC in the loop regarding the business park development and agree to pathway connections to the Hook and Event Site.

3. PUBLIC COMMENT: Paul McKinzie, a private developer, presented preliminary plans and drawings for a building he anticipated constructing at the Ken Jernstedt Airfield for Advanced Navigation and Positioning Corporation (ANPC). McKinzie encouraged the Commission to approve a transaction stating that he could not proceed with engineering of the building until a land lease was signed. Attorney Jerry Jaques commented that an agreement had been drafted and that drawings presented tonight by McKinzie would be incorporated as exhibits, and that although a title report was missing the Commission could consider approving a lease within a 90-day contingency period. President Bohn announced an Action Item would be added to the agenda.

4. APPROVAL OF MINUTES:

Motion: Move to approve the minutes from the August 23, 2005 special session, and the minutes from the September 6, 2005 regular session.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

5. EXECUTIVE DIRECTOR'S REPORT:
· Bridge: David Harlan, Executive Director, reported that there had been some rescission discussions in Washington, D.C. regarding transportation funding due to the Gulf states hurricane disasters but speculated that funding earmarked for the Frontage Road Crossing Project would not be affected.
· Waterfront Industrial/Planning: A mandatory pre-bid conference for the Second Street realignment project, which has a target completion date of May 31, 2006, is scheduled for October 5 and bids will be opened on October 19. Harlan reported that investment grant dollars for the project from the Oregon Economic & Community Development Department (OECDD) may be available. Harlan commented that Hood River County requirements might complicate and delay the transfer of Lot 6 to the City but that he was working to resolve those issues with County Administrator Dave Meriwether. Harlan also reported that Expo event stakeholder names had been provided to the Chamber of Commerce, however, the Chamber was busy planning for the October 14-16 Harvest Festival and that a meeting to begin discussions on the eventual relocation of community events from the Expo Center would not happen until after Harvest Fest.
· Waterfront Recreational: At the request of City Manager Bob Francis, Harlan reported that the rezone of the Hook and the Spit, which the City requested to address parking lot and Goal 5 issues, would be delayed for a couple of months. Mike Doke, Marketing Manager, reported that a meeting to review the kiteboarding season had been attended by five of the eight concessionaires.
· Wasco Business Park: Final plats will be recorded next week, which will allow pending transactions to move forward. Doke reported that all parcels at the Wasco Business Park have been spoken for.
· John Weber Business Park: Transactions are pending and Doke reported that all but Lot 7 are spoken for.
· Airport: An Action Item regarding the McKinzie land lease has been added to the agenda.
· Other: The Port will host the Gorge Technology Alliance meeting on Tuesday at the Marina Center Building; Executive Director Harlan, Marketing Manager Doke, and Commissioner Streich will be attending the OECDD conference in Eugene Monday and
Tuesday of next week; and Harlan and Commission Hosford will attend the Annual Pacific Northwest Waterways Association meeting in Vancouver, Washington October 12-14. Staff is currently working on the fall planning session materials for the October 18 meeting, which will begin at 12:00 noon.

6. Commissioner, Committee Reports:
· Waterfront Recreation Committee - Staff will schedule a season wrap-up meeting after October 18.

7. ACTION ITEMS:
a) Park Resolution No. 2005-06-3:

Motion: Move to approve Resolution No. 2005-06-3 authorizing conveyance to the City of Hood River of property commonly known as Lot 6 for a park.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

b) Hood River Distillers Purchase and Sale Agreement: Staff was commended by the Commission on successfully negotiating the sale of approximately 1.004 acres and rail spur to the Distillers.

Motion: Move to approve the Purchase and Sale Agreement dated September 21, 2005 with Hood River Distillers, Inc. and authorize the Commission President to sign on behalf of the Port.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

c) Joint County-City-Port Meeting: As an information item only, Executive Director Harlan reported the County identified October 12 from 7 to 9pm as a potential meeting date to share information on an industrial lands survey and housing study. Staff will notify the County that Commissioners Bohn and Streich would be available to attend, along with members from Port staff.

d) Accounts Payable: None.

e) Waterfront Development Memorandum of Understanding:

Motion: Move to approve the termination of the Memorandum of Understanding with William Smith Properties, Inc. for development of the waterfront.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

f) Ken Jernstedt Airfield Land Lease:

Motion: Move to approve the signing of a land lease agreement with Paul McKinzie for property at Ken Jernstedt Airfield contingent upon receipt of all exhibits to be approved in final form by staff.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

8. ANNOUNCEMENTS/COMMMMISSION CALL: Commissioner Watson requested that staff and the Commission provide input and direction to members of the PDC and that further discussion take place at the fall planning session. Commission Hosford asked for confirmation that the October 4 regular meeting was canceled. Executive Director Harlan stated the meeting would be canceled due to meeting conflicts and the Commission would not meet until the October 18 fall planning session, which would begin at noon. President Bohn reported on the Ford Institute of Community Leadership meeting she had attended the previous weekend. Bohn stated the group is comprised of 40 people ranging from high school juniors to adults in their 80's. The group, which meets one weekend a month for the next five months, is learning consensus building and leadership skills and will complete a community project. Commissioners Duckwall and Streich passed.

9. EXECUTIVE SESSION: None.

10. ADJOURN. President Bohn adjourned the meeting at 7:48 p.m.