Minutes of July 11, 2006 Work Session/Regular Meeting
Expo Center Conference Room
4:30 P.M.

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

Absent: None

Media: Sue Ryan, Hood River News

President Sherry Bohn called the Work Session to order at 4:35 p.m. for the purpose of discussing the E. D. Hovee & Company, LLC draft Waterfront Industrial Market Assessment. Executive Director Michael McElwee commented that the Hovee report was a crucial foundation piece for moving forward on the development of the industrial waterfront, and that finalization of the report along with a staff recommendation to the Commission on an implementation plan should take precedence over the physical plan, which is why Ned Vaivoda's work has been temporarily put on hold. McElwee then introduced Eric Hovee, who commented on the preliminary draft and addressed questions from the Commissioners and staff. Following Hovee's presentation, McElwee stated that he hoped to have an outline prepared for Commission review within four to six weeks of an implementation plan that would include a market assessment establishing a clear priority for employment intensive business; a physical plan that would encourage build-out to meet business needs; a financial strategy possibly including exploration of tax increment financing or other financing options; and a marketing approach that might utilize a Request for Development Proposal (RFP) process. McElwee recommended that the implementation plan for development of the industrial waterfront properties would also be shared with key community partners, and he hoped the draft strategy would move forward quickly in anticipation of negotiations in early 2007.

President Bohn ended the Work Session at 5:20 p.m. and called for a short break before proceeding into the Regular Meeting.
1. CALL TO ORDER: President Bohn called the regular meeting to order at 5:25 p.m.
a) Modifications, Additions to Agenda by Staff: A Resolution relative to the City of Hood River's water pipe line was added to the agenda as an Action Item. Commissioner Hosford requested to report on an Urban Renewal committee meeting under Commissioner, Committee Reports.

2. ELECTION OF 2006-2007 OFFICERS: President Bohn called for separate motions on the election of officers.

Motion: Move to reappoint Sherry Bohn as Commission President.
Move: Watson
Second: Streich

Discussion: Commissioner Watson stated that it had been a difficult year personally for many of the Commissioners and she appreciated the extra work Bohn had taken on. Watson said her nomination of Bohn for President was a way of thanking and honoring Bohn. Watson further commented that Bohn's continuity of leadership as the Commission enters an era with a new Executive Director was important, and she hoped that Bohn's bridging of differing community views would continue as well.
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED
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Motion: Move to reappoint Fred Duckwall as Commission Vice President.
Move: Streich
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED
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Motion: Move to reappoint Don Hosford as Commission Secretary.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED
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Motion: Move to reappoint Hoby Streich as Commission Treasurer.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

a) Committee Appointments: President Bohn commented that individual discussions had taken place among the Commissioners about the usefulness of certain committees as well as the community's perceptions that decisions are made without input from the full Commission. President Bohn questioned if committees could be dissolved or disbanded?

The Real Estate Committee's purpose was discussed, with Commissioner Hosford stating he appreciated its value. Commissioner Watson was of the opinion that she felt "left out" and unaware of the nuances and heart and soul of committee discussions that were brought back to the Commission. Commissioner Duckwall stated that he believed Commissioner Streich was of the same opinion as Watson, and suggested that if the Real Estate Committee was dissolved then any confidential matters could be discussed by the full Commission in an Executive Session prior to Regular Session, which is attended by the public. Linda Hull, Executive Assistant, commented that she would be working with Executive Director Michael McElwee on governance revisions to include specific committee guidelines. Following the discussion, there was Commission consensus to add an Action Item to dissolve the Real Estate standing committee.

The Finance standing committee was then discussed. Linda Shames, Finance Manager, stated there was an efficiency purpose for maintaining the Finance Committee's authority to approve non-budgeted expenditures, which would then be ratified by the full Commission, rather than calling a special meeting with a 24-hour notice requirement. Following the discussion, there was Commission consensus to explore the option of dissolving the Finance Committee by expanding the Executive Director's approval authority limits.

The Committee's that will be left "As Is" until governance revisions are made include the Airport Committee (it was noted, however, that the members would be contacted about reappointments); Community Relations; Waterfront Recreation; and the Architectural Site Review Committee (guidelines will be reviewed in anticipation of the waterfront development plan). Hull commented that Ad Hoc committees have a 2-year life, or disbanded earlier if the project work is completed.

3. INFORMATION-COMMUNICATIONS-ANNOUNCEMENTS: Linda Hull commented on the change in agenda format, noting that the "Commission Call" was no longer at the end of the agenda, and that further changes were likely. President Bohn, however, stated it was her preference, at least for tonight's meeting, to hold the Commission Call over to the end of the meeting. Hull did voice her appreciation to the Commissioners for the time that staff was allowed to work on its own during the period between Executive Directors, and she thanked President Bohn for her support and accessibility. Hull further stated that staff was excited to have McElwee on board.

4. PUBLIC COMMENT: None.

5. APPROVAL OF MINUTES:
Motion: Move to approve the minutes from the June 6, 2006 budget hearing and regular meeting, and the June 19, 2006 special meeting.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

6. COMMISSIONER, COMMITTEE REPORTS:
a) Industrial Lands Work Group - Mike Doke, Marketing Manager, reported that today's meeting had been cancelled and the next meeting was scheduled for August 8.
b) Affordable Housing Work Group - Doke reported that committee recommendations were ready, and the first presentation would be made by chair Cindy Walbridge to the City Council on July 24.
c) Pacific Northwest Waterways Association - Commissioners Hosford and Streich reported on their attendance at the mid-year meeting at Salishan Lodge. One presentation that Hosford found to be very interesting was the various methods being studied to harness energy from the ocean. Hosford also noted that he had invited PNWA Executive Director Glenn Vanselow to Hood River to meet Executive Director McElwee. Streich thanked Hosford for the introductions at his first-attended PNWA meeting, and commented that his eyes were opened to how important the waterways were to commerce. Streich noted that he had extended an invitation to the U.S. Army Corps of Engineers (Corps) to attend a Waterfront Recreation Committee meeting so that members might have a better understanding of the water levels of the Columbia River. President Bohn commented that PNWA assisted staff with communications to the Corps on timelines for dredging the boat basin.
d) Urban Renewal (agenda addition) - Commissioner Hosford provided information on the Ford Institute Leadership Program class project (of which President Bohn is a class member) to install recycling receptacles on existing "high traffic" city trash cans in the downtown core.

7. STAFF REPORT: Before beginning the staff report, Executive Director McElwee thanked the Commissioners and staff for meeting with him prior to his July 1 start date. McElwee also thanked Commissioners Hosford and Duckwall for his Rotary introduction. McElwee commented that he was quickly initiated to the variety and complexities of the staff workload and the summertime activities and issues with his first workday being the day before the 4th of July holiday. McElwee reported that he has since met with key staff at the city and county and that he was becoming more familiar with the Port operations and properties. As he prepares his 3, 6 and 12 month work plan, McElwee asked for input from the Commissioners and further stated that his focus would be on the waterfront industrial implementation plan and continuing to meet with strategic partners. McElwee stated that in future commission meetings the director's report would be short to highlight upcoming issues and that more discussion would occur with Action Items on the agenda.
· Waterfront/Marina Recreational: McElwee reported one of his first official visitors on July 3 was from the Marine Deputy who informed the office that the improved signage on the overflow dock inside the marina had helped, but that he was repeatedly warning swimmers of their trespassing violation. Staff concurred with the Deputy's recommendation to cite repeat offenders and McElwee stated that unless the Commission had an objection staff would follow up with the Deputy when he came back on duty. Executive Assistant Linda Hull reported that staff would continue to gather information from Special Districts Association of Oregon on the Port's responsibility, and liability, in providing a designated swim beach. A resident whose friend had to be rescued from the river currents raised the issue. Hull stated that she had been in contact with the requestor, who understands the ramifications, but who has also contacted the Lions organization for funding assistance in providing roping, buoys, and life rings.
· Waterfront Industrial/Planning: The Hood River County Chamber of Commerce has sent a letter requesting the Port consider closing North 2nd Street during Harvest Fest and to continue a cooperative partnership with the Port. McElwee stated that he would be meeting with Chamber Executive Director Craig Schmidt this week.
· Airport: The Port is in receipt from a letter from the Oregon Department of Environmental Quality (DEQ) requesting the Port enter into either a voluntary or mandatory review and assessment program regarding sites used by two pesticide applicator operators at the Ken Jernstedt Airfield. McElwee reported that staff and counsel were scheduled to meet the following day with an environmental consultant and that DEQ's request would be an August agenda Action Item.
· Bridge: Staff is continuing to work with the Washington State Historic Preservation Office (SHPO) regarding the as yet unresolved archeological issues related to the bridge redecking project that was completed over two years ago.
· Other: Commissioners Bohn and Streich volunteered to be on the July 17 KIHR Radio program as Commissioner Hosford would be unavailable as he and his wife Virginia would be celebrating their 50th wedding anniversary.

Commissioner Duckwall inquired if the community task force had met to begin discussions on the displacement of community events and the Chamber/Visitor's Center, with the anticipated closing of the Expo Center Building at the end of 2007 due to the development of the waterfront industrial properties. Mike Doke reported that Chuck Bugge, former Hood River County District Superintendent, would be facilitating the committee and that a meeting was scheduled for August.

President Bohn inquired if there were any problems with the Spit closure for the July 3-5 fireworks setup, show, and cleanup or anything in general with the July 4 holiday. Staff reported there were no problems and that maintenance supervisor Joe Pounders reported the marina and waterfront properties were much cleaner than in past years.

8. ACTION ITEMS:
a) Waterfront Industrial/Planning - Approve Second Amendment to the Waterfront Park Intergovernmental Agreement: The Port and the City approved the Park Development Committee's (PDC) conceptual park plan at a special joint meeting on June 19. The IGA amendment authorizes the continued authority of the committee to remain in effect in order to promote the conceptual park plan and to advise and assist the City and Port on matters related to the conceptual park plan.

Motion: Move to approve the Second Amendment to the Waterfront Park Intergovernmental Agreement between the City of Hood River and the Port of Hood River.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

b) Waterfront Recreation - Authorize Fee Recalculation for Kiteboard Instruction Concession Permits: Because of the lack of the sandbar due to high water levels at the beginning of the May 15 kiteboard instruction season, some of the schools had inquired about a reduction in their concession fee because they had not been able to teach much in May or June. The schools request to teach from the Marina Beach was discussed by the Waterfront Recreation Committee, and because of the many other users of the Marina, the Commission did not change its current policy following discussions at the June 6 meeting. Hull commented that, for this season only, a one-time reduction would be fair and staff would review the Request for Proposal format and Concession language for both kiteboarding and windsurfing schools to address the economic impact of circumstances beyond anyone's control.

Motion: Move to approve staff's recalculation of the Kiteboard Instruction Concession Permit fees from June 15, 2006 forward.
Move: Watson
Second: Duckwall
Discussion: Commissioner Streich questioned a backlash on the recalculation as a windsurfer had asked him if the Port could guarantee the wind. Hull responded that language in future kiteboarding and windsurfing agreements would be tightened to address economic impacts due to
unforeseen circumstances.
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

c) Ken Jernstedt Airfield - Authorize Consent for Assignment of Shearer Sprayers Lease to Aero Spray LLC: The assignment of the lease and airport hangar agreement from current lessee Shearer Sprayers and Aero Spray memorializes the Port's consent to transfer the lease for the business and hangar from father, John Shearer, to son, Gary Shearer.

Motion: Move to approve the Assignment of Lease and the Airport Hangar Agreement between Shearer Sprayers and Aero Spray to transfer the lease from father, John Shearer, to son, Gary Shearer.
Move: Hosford
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

d) Professional Services Agreement - Authorize Execution of Ball Janik Intergovernmental Agreement Between the Port/City/County:

Motion: Move to approve the Intergovernmental Agreement between the City of Hood River, County of Hood River, and Port of Hood River to retain the professional services of Ball Janik, LLP and to ratify the Personal Services Contract between the Port and Ball Janik.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

e) Accounts Payable: None.

f) Resolution No. 2006-06-1 (agenda addition): The Port and the City of Hood River entered into an Intergovernmental Agreement (IGA) dated June 6, 2002 to construct a water pipeline serving the waterfront area. Linda Shames, Finance Manager, explained that in June of 2002 the Port had contributed $150,300 toward the project estimate of $344,000 and that the project, which is just now underway, has incurred a cost overrun due to unexpected boring under Interstate 84. Shames also explained that the IGA allows for negotiations with the City for the Port's payment of cost overruns and that it was her opinion, in a worst case scenario, to pay for the increased boring cost overrun in order to facilitate the future development of the waterfront area. McElwee stated that if a split could not be negotiated then it would be his recommendation to the City that future development fees should be forgiven.

Motion: Move to approve Resolution No. 2006-07-1 authorizing the Executive Director to negotiate with the City of Hood River the allocation of expenditures, not to exceed $25,000, for cost overruns on the Water Pipeline Project serving the waterfront area.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

g) Real Estate Standing Committee: (See comments under Agenda item 2a.)

Motion: Move to dissolve the Real Estate standing committee.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

9. ANNOUNCEMENTS/COMMISSION CALL: Commissioner Hosford commented that he and his wife Virginia celebrated their 50th wedding anniversary with a family dinner, and that they would continue the celebration with a trip to the Oregon coast. Commissioner Duckwall recommended that the Commission conduct a work session at a future meeting to discuss governance issues and the roles of the Commissioners. Commissioner Watson mentioned that Director McElwee would be attending a Rural Development Initiatives (RDI) conference the end of the week and challenged him to identify any community that was not experiencing conflicts. President Bohn commented that although Thomas the Tank Engine was an economic boost to the community she was glad it was over because of all the parking complaints she received.

10. ADJOURN: President Bohn adjourned the meeting at 6:23 p.m.