Minutes of June 6, 2006 Budget hearing/Regular Session Meeting
Expo Center Conference Room
5:30 P.M.

Absent: Commission President Sherry Bohn

Media: Sue Ryan, Hood River News

Vice President Duckwall opened the Budget Hearing at 5:30 p.m., stating that it would remain open for public comment and run concurrently with Regular Session.

1. CALL TO ORDER: Vice President Duckwall called the Regular Session to order at 5:30 p.m.
a) Modifications, Additions to Agenda by Staff: Staff requested a Change Order for North Second Street be added to the agenda as an Action Item.

2. INFORMATION-COMMUNICATIONS: None.

3. PUBLIC COMMENT: Kevin Eakins, owner of Willow Ridge lot 6, appealed to the Commission to remedy the failed sewer line that services his property on Lincoln Street and that of John Elliot, owner of lot 7. Eakins stated he also represented the four owners of lots 4 and 5 that have easements to the sewer line. Eakins informed the Commission that he had (but did not provide) video evidence and expert opinion as to the poor installation quality of the sewer line due improper backfill and bedding that has resulted in a separation and collapse of the line. Eakins stated the Port Commission set a precedence in 2000-2001 when some lines were replaced as problems were identified and that the Port, as the developer of the Willow Ridge Subdivision, had a reasonable obligation to "make it right" now for a product that wasn't properly delivered. Attorney Jerry Jaques advised the Commission any financial remedy was a policy decision but also commented that as a condition to the purchase Eakins had agreed in 2001 to purchase the property in the condition, known or unknown, existing at the time of the agreement "As Is." Vice President Duckwall thanked Eakins for his comments and advised Eakins the Commission would consider his request.
Stephen Ford, new to the sport of kiteboarding, asked the Commission for temporary use of half of the Marina Beach for kiteboard launching until the high water levels recede and the Spit sandbar resurfaces. Ford stated he was not good enough to launch from the high water at the Spit and that rigging on the rocks at the Hook was unsafe for him and his wife's and infant daughter's future. Ford then admitted to "poaching" onto the Marina Beach over the Memorial Day Weekend commenting that Port authorization had been implied. Linda Hull, Executive Assistant, interjected stating that permission to launch from the Marina Beach in fact had not been granted and that there has been no deviation from the current policy which allows kiteboard launching only from the Spit or from the Hook immediately west of the Western Power Building. Hull re-emphasized that for safety reasons the Marina Beach is off limits to kiteboarding activities due to the multi-use of the area by the general public. Ford argued for temporary use of the Marina Beach because he had not observed many windsurfers or casual users and asked the Commission if a petition or mass e-mailing could effect a temporary change of policy? Vice President Duckwall recommended that Ford become involved in reactivating the kiteboarding association to reopen discussion with the Commission through the Waterfront Recreation Committee and to work with the Park Development Committee in planning kiteboarding amenities at the Lot 6 waterfront park. Duckwall emphasized that staff had been confronted by verbally abusive kiters, which was not conducive to the request for a deviation to the launch site policy. Commissioner Watson suggested that the Waterfront Recreation Committee meet when President Bohn, committee chair, returns from vacation next week to discuss viable options, if any, for kiteboarding launch sites in the future if the Spit is inaccessible because of high water. Watson stated the discussions must be kept within the framework of safety and access for other users, and that it was only fair to protect the passions of other users of the Marina Beach than just the kiteboarders. Duckwall thanked Ford for his comments and opening the lines of communication. Ford's last question was if he should be concerned about being arrested if he continued to launch from the Marina Beach, and Duckwall responded that it was a possibility he could receive a citation.

4. APPROVAL OF MINUTES:
Motion: Move to approve the minutes from the May 16, 2006 regular meeting.
Move: Hosford
Second: Streich
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED
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Motion: Move to approve the minutes from the May 9, 2006 budget committee meeting.
Move: Streich
Second: Watson
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED

5. STAFF REPORT:
· Waterfront Industrial/Planning: Linda Shames, Finance Manager, reported on the Oregon Department of Transportation (ODOT) meeting she attended regarding the Exit 64 modification. Shames reported that ODOT expects to select a consultant team in June and that a final report will be a yearlong process after which construction will begin. As a part of the modification (and/or new interchanges), ODOT requires the participation of local government in an "Interchange Access Management Plan" to balance and manage transportation and land use decisions since the zone of an area directly affects the traffic volumes, thus ODOT has imposed a moratorium on all zone changes affecting the interdependent interchanges of Exits 64 and 63. Shames summarized that ODOT should not have any problem with development on the waterfront during the moratorium as long as there are no changes to the zoning. Duckwall asked Shames if she had spoken to ODOT at this meeting about the 4-way stop at the just-completed North Second Street. Shames responded it was the City's decision to have a 4-way stop intersection and that any request to revise the traffic pattern would need to be submitted to the City for consideration. There was Commission consensus to submit a letter to Dave Bick, City Engineering/Public Works Director requesting that the North Second Street traffic be a pass-through with a required stop for Riverside and North First Street traffic.
Linda Hull, Executive Assistant, reminded the Commission of the Monday, June 19 joint meeting of the Port Commission and City Council to be held at the Expo conference room at 6:00 p.m. for a presentation by the Park Development Committee, a requirement of the Waterfront Park Intergovernmental Agreement. Commissioner Watson commented on her disappointment at not being able to attend this important meeting, as well Commissioner Duckwall not being able to attend because of prior commitments. Watson stated she knew at least one Council member was not available for the June 19 meeting, and stated she wished the City had been more flexible in establishing a meeting date that could be attended by everyone.
Hull also reminded the Commission to set aside the date of Wednesday, August 2 on their calendars for the joint Port, City, County, and Parks & Recreation District meeting to begin discussions on the City's request to transfer ownership of Lot 6 to a third party. Hull also informed the Commission that public hearings on the rezone of Lot 6, the Hook, the Spit, and Waucoma Island would go before the City Planning Commission on July 5 and City Council on July 10. Hull stated Commission attendance at the Planning Commission hearing was not necessary as it would simply be a staff report by Planning Director Cindy Walbridge. Hull also reported that the City's amended Transportation System Plan that includes the Riverfront Pedestrian Trail was now at the Oregon Department of Land Conservation and Development and final approval is expected June 13.
· Waterfront/Marina Recreational: Hood River Valley Parks and Recreation District approached the Port last month for permission to locate a sand volleyball court in the Marina Park northeast of the Picnic Shelter. The 40 by 80 foot plot has been staked for visual cues to the court dimensions. Parks & Rec's first choice was the Children's Park, which neighbors objected to; and the City rejected the idea of Jackson Park because the location would displace utility lines. It was the opinions of Commissioners Watson and Hosford that the sand volleyball court would be a nice addition and potentially encourage more use of the Marina Park. Shames reported, however, that Joe Pounders, Maintenance Supervisor, was concerned because the location displaces a main irrigation line, takes up a big part of the picnic lawn, and even though Parks & Rec would be responsible for maintaining the volleyball court, Pounders believed it would be inevitable that the Port would be called upon for maintenance because the volleyball court would be on Port property. Shames also commented on the possibility of conflicts when users have paid for a reserved use of the Marina Park when Parks & Rec has not committed to coordinating a scheduled use of the court. Hull stated she would continue to work with Parks & Rec District Director Lori Stirn and suggest Wilson Park as an alternate site and/or working with the PDC to site the volleyball court on Lot 6. Hull commented that if Stirn is not receptive to another location, then Stirn will be asked to attend another Commission meeting to discuss why they believe the Marina Park is the most appropriate location.
Mike Doke, Marketing Manager, reported that Thomas the Tank Engine will be returning to the Mt. Hood Railroad Station June 24 through July 2 and that the Lions will again have the parking concession on the graveled lot east of the Expo. The Lions, however, are concerned with a revenue loss because of the 32 free parking spaces along the newly opened North Second Street. Hull suggested, and the Commission concurred, that the problem could be resolved by marking the free parking spaces as "bus loading zones."
· Wasco Business Park: Mike Doke reported he continues to work with a prospective tenant and that he had not yet received a Scope of Work from the architect for first floor improvements. Doke requested authorization to submit the Scope to the Finance Committee for review, which would then be presented to the full Commission at the July 11 meeting for ratification. Doke also committed to the project not proceeding too far without first having a lease agreement in place.
· John Weber Business Park: The Commission will consider a Sale Agreement under Action Items.
· Airport: An FBO draft lease for Flightline Services has been provided by Finance Manager Linda Shames to Attorney Jaques for his review and Shames indicated a meeting would be scheduled the following week with Commissioners Duckwall and Streich of the Airport Advisory Committee. Denny Kendig and Anne Yannotti of Flightline Services spoke up stating they were still waiting for an answer from the May 16 meeting regarding the card lock fuel system. Kendig emphasized they really wanted and needed the system which would allow pilots to refuel their aircraft when the FBO is not staffed and he felt if the business decision were made to install the system then pilots would fly more because of the availability of self-fueling. Kendig informed the Commission if the Port was reluctant to accept the card lock then he was offering to pay for the installation, which would mean the equipment would be theirs. If the FBO lease was not renewed with Flightline, then Kendig stated the new airport operator could purchase the equipment, or the Port could purchase it at that time, or he stated the Flightline Services would remove the system at their expense. (Note: new fuel tanks would not be required as the card lock system would be an add-on only to the existing fuel tanks. Kendig believes there is sufficient power to operate the card-operated, self-fueling system; however, a line would need to be trenched for phone service, and a concrete pad and phone pedestal would be required and Kendig provided an estimate of $2,500 for the work needed in preparation for the system installation.)
Shames then commented that she had placed calls to Western Petroleum, the current fuel jobber, about the card lock system but that her calls had not been returned. Shames stated it was her opinion that the card lock system was an integral part of the FBO lease agreement and that there were details associated with the system that still needed to be sorted out. Shames also indicated that the Port would know in July whether or not they were successful in obtaining a state aviation grant that would fund 90% of the card lock system. Both Kendig and Yannotti responded that if they have to wait any longer then they basically lose a year since the busy flying season is now. Kendig further commented on meeting last December relative to the FBO lease renewal, which he had not yet seen, but Yannotti stated Port staff had started working on the renewal last June. Kendig formally requested that a Cost of Living allowance be added to the agreement for the next five years due to the increased fuel costs. Yannotti expressed her frustration with what she believed to be a breakdown of communications among Port staff, which had created a trust issue for her and she stated she believed they were being taken advantage of. Commissioner Streich stated that the six-month long window in providing a lease renewal was an embarrassment to him and that he would like a firm date set in completing the FBO agreement negotiation.
Attorney Jaques commented that he could understand Kendig's and Yannotti's frustration; however, he reiterated that a draft was currently under review and he hoped to discuss the lease with Duckwall and Streich next week so it could then be presented to Flightline Services. Jaques stated that Shames had quite an undertaking in contacting all of the state "Community General Aviation Airports" (Category 4, which accommodates general aviation users and local business activities with 2,500 or more annual operations or more than ten based aircraft) to compare parameters and FBO agreements because he was concerned with the clearly outdated language of the current agreement.
Vice President Duckwall concluded the discussion by telling Kendig and Yannotti that the Commission understood their issues and that he would like to allow Jaques to consider whether or not the card lock fuel system should be added to the agenda as an Action Item, and if not then Duckwall asked Kendig and Yannotti to allow he and Commissioner Streich to meet next week with Jaques and staff.
Mike Doke reported that the Letter of Support submitted to Cogent Corporation International for a Connect Oregon grant was unsuccessful. The grant, which did not require any matching funds from the Port, would have been used for airport improvements, such as Wi-Fi services, solar-powered runway lights, and a pilot kiosk.
· Other: Linda Hull reported that the Letter of Support submitted on behalf of Columbia Area Transit to secure funds for construction of new office space at Wasco Business Park was also unsuccessful. Laurie Borton, Marina Manager, stated the waiting list for moorage slips has grown to 22 names. Commissioner Watson requested a discussion at a future meeting on the lack of available moorage; however, Shames did point out that expansion costs were just added to the 5-year capital plan. Doke also noted the Industrial Lands workgroup would meet again on June 13 and the Affordable Housing group would meet again on June 20.

6. COMMISSIONER, COMMITTEE REPORTS: None.

7. OTHER BUSINESS: None.

8. ACTION ITEMS:
a) Transportation Enhancement Grant Resolution No. 2005-06-7:

Motion: Move to approve Resolution No. 2005-06-7 authorizing the Port of Hood River to apply for a Transportation Enhancement Grant in the amount of $500,000 from the Oregon Department of Transportation for development of the Riverfront Pedestrian Trail System.
Move: Watson
Second: Hosford
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED

At 6:42 p.m. Vice President called for comment on the 2006-2007 budget. Hearing none, the Budget Hearing was closed at 6:42 p.m. and Vice President Duckwall continued the Regular meeting.

b) Budget Resolution No. 2005-06-8:

Motion: Move to approve Resolution No. 2005-06-8 adopting the 2006-2007 budget in the amount of $20,648,609 and imposing a tax rate of $.0332 per $1,000 upon the assessed value of all taxable property within the district.
Move: Streich
Second: Watson
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED

c) John Weber Business Park Sale Agreement:

Motion: Move to approve the Sale Agreement and Receipt for Earnest Money
with Brian Prigel in the amount of $60,140 for John Weber Business Park Lot 3.
Move: Watson
Second: Streich
Discussion: Attorney Jaques noted the agreement contained provisions allowing the buyer a two-year window after the closing date in which to obtain a building permit and commence construction of a building.
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED
d) Accounts Payable: None.

e) North Second Street Change Order (agenda addition): Finance Manager Linda Shames reported that Mid Columbia Paving submitted a change order requesting an additional $5.00 per ton of hot mix asphalt due to the dramatic increase in the price of oil. Shames noted that had the contractor stayed on schedule, paving would have started the first of April. Shames reported that ODOT tracks raw material prices as standard operating procedures and research suggested a $3.30 per ton increase rather than $5.00. Shames reported that Mid Columbia Paving agreed to the $3.30 price pending Commission approval.

Motion: Move to approve the North Second Street Change Order (#2) in the amount of $3,789.85 for an additional $3.30 per ton of hot mix asphalt.
Move: Hosford
Second: Streich
Vote: Aye: Duckwall, Hosford, Streich, and Watson
Absent: Bohn
MOTION CARRIED

f) Airport Cardlock Fuel System (addition): Vice President Duckwall asked if Attorney Jaques had a recommendation on the card lock fuel system for the Ken Jernstedt Airfield. Jaques responded that the Commission could either wait until it was known if the state aviation grant would be awarded to the Port, or the Commission could consider Flightline's offer to pay for the installation and retain ownership of the equipment. Denny Kendig of Flightline Services stated if the Commission was uncomfortable with the Western Petroleum seven-year commitment in comparison to the five-year FBO lease agreement, he was willing to sign whatever was needed in order to work out a deal to get the card lock now. Jaques informed the Commission it would be important to confirm that Western Petroleum would not have an interest in the system, and that Flightline Services understands if they install, own, and operate the equipment they would need to agree to remove it if requested by the Port. Duckwall summarized the issue by stating time appears to be the issue, and if Flightline Services wanted to proceed with the installation and ownership of the card lock system, then Kendig needed to provide Jaques with the necessary information so that a stand-alone agreement could be drafted. There was Commission consensus of Duckwall's summarization.

9. ANNOUNCEMENTS/COMMISSION CALL: Commissioner Watson had information on a Rural Development Initiatives, Inc. (RDI) conference that will be held July 14-15 at the Kah-Nee-Ta Resort in Warm Springs and noted the June 12 through July 5 registration period. Watson stated she is unavailable to attend the weekend conference but thought it would be a good idea if someone could attend.
The first meeting next month falls on the July 4th holiday. Rather than delay the meeting to the regular schedule of the third Tuesday of the month, the Commission agreed it would be best to have a meeting on Tuesday, July 11.
Commissioner Watson then asked if discussion on the Willow Ridge sewer issue should continue in Executive or open session? The Commission agreed to open session and Vice President Duckwall began the discussion by questioning of how long the Port's responsibility extended? Commissioner Streich suggested exposing the sewer line and if the backfill proved to be improper it would be his recommendation that it is the Port's responsibility to remedy the problem, to which Commissioner Watson agreed. Attorney Jaques responded that other property owners besides Eakins were involved and if the Commission made concessions for Eakins at what point did the concessions stop? Jaques suggested that if the Port becomes involved and sets a cap on the claim that is agreed to by the current parties, he posed the question of what was to keep the next person from claiming precedence. Jaques stated it was his opinion that the Port was not responsible for repairing the faulty sewer line, but that it was a decision the Commission would have to make. Commissioner Streich stated that he agreed with Eakins comment that the Port had a goodwill responsibility to right a past wrong and that the timeframe didn't matter. Jaques commented that he understood Streich's and Eakins' opinions, but the legal obligations of the Port were clear-Eakins agreed to the property purchase "As Is." Streich reiterated his suggestion of exposing the line in an attempt to prove whether or not the backfill was done properly; and if not done properly, then a settlement should be offered. Vice President Duckwall reminded the Commission that a decision did not need to be made tonight and suggested the issue could be added to the next agenda, and it was his opinion the Port already did its required due diligence. Mike Doke agreed with Duckwall stating the Willow Ridge project was long and involved but that the City, as well as Port maintenance crews, were involved in a project that was done well and done professionally at the time. No formal action was taken as a result of this discussion on Kevin Eakins claim for repair of the sewer line that serves his property on Lincoln Street in the Willow Ridge Subdivision.

10. EXECUTIVE SESSION: None.

11. Adjourn. Vice President Duckwall adjourned the meeting at 7:08 p.m.