Absent: None

Media: None

President Sherry Bohn called the Special Meeting to order at 12:35 p.m. and immediately called the Commission into Executive Session under ORS 192.660(2)(e) Real Property. No action was taken as a result of Executive Session, and at 2:35 p.m. the Commission began discussion of Strategic Planning in open session.

President Bohn stated the discussion today would pertain to the sections of the Strategic Plan regarding budget process, including updating the 5-year Capital Plan. Today's discussion will not be to review the Strategic Plan page-by-page, but to focus on any strategies that require input into the budget process for the 2006-2007 fiscal year. Linda Hull will note changes in the Strategic Plan for future revision with the new Executive Director when hired.

Financial Management:
Under Cash Flow Management, Linda Shames reviewed the Return on Investments (ROI) of Assets with the Commission. As in previous years, all Asset Cost Centers, except the Bridge, return less than 5%. Big 7 Building may achieve the goal this fiscal year if the building space is fully leased. The Expo Center redevelopment in 2008 will be a positive change. The Chamber's Task Force set up to review alternatives for event venues should have options identified by the end of the year. The Port will continue to rent the Expo through 2007, but not beyond. The Cruiseship Dock was discussed. Linda Hull stated the dock's location is not ideal for the larger vessels to maneuver into, especially on busy windsurfing and windy days. The dock will be included in the waterfront master planning process. The smaller vessels can continue to dock inside the Marina, which some prefer. Dockage has decreased by 50% over the past six years. Creating a temporary RV Park along the old 2nd Street was discussed. Commissioner Streich asked to be involved in the planning of it and felt it was an excellent idea for short-term use of the area next to the Event Site. Shames asked the Commission to continue to be aware of the Port's standard that no single asset center should account for more than 50% of the total operating revenues.

Under Expenditure Control/Authority, Shames said there were no comments by the auditors this year for them to review. The current toll collection system is failing and could have been noted; however, the new electronic toll system is projected to begin with completion of the toll plaza improvements next year.

Under Debt Management, Shames said the only debt the Port has is for the Bridge Redecking Bonds. The Port would also be eligible for various loan programs.

Asset Management:
Toll Bridge: Shames stated that ODOT will now be inspecting all bridges in Oregon and they will have recommended contractors to do the ongoing painting on the understructure. The Maintenance Department will develop a program established for other routine work on the bridge. The Commission felt reviewing bicycle options under Action Items should be deleted. There are no alternatives to review. Bicycles will never be allowed on the bridge due to safety. Waterfront Business Park Complex: The Commission asked that the reference to William Smith Properties be deleted and to add that staff will pursue funding for the Riverfront Pedestrian Trail System. The trail system was a priority for the Hood River Coalition's federal lobbying this year and will be included in the master planning. The Expo alternative uses were again discussed. The Commission has been approached by the Chamber to discuss changes in the Port/Chamber relationship. The Port has subsidized the Chamber/Visitor Center since 1952, when at that time, the Chamber could not support itself. Now, Transient Room Tax (TRT) is collected by the City and the County and those funds support the activities of the Visitors Center. Commissioner Watson thought that the Chamber should explore the state-owned Parcel Y at the entrance to the waterfront for a possible Welcome Center site. Shames will show the actual book value budget figures that the Chamber/Visitor Center uses for support. The Commission reiterated that the charge of the Task Force is to find alternatives to the Expo for community events. Marina Park: The Marina Plan development was pushed out to 2008 so that the waterfront master planning process can incorporate connections, depending upon the Frontage Road feasibility study. Shames told the Commission that due to the frequent vandalism of the Marina showers, the Port does not make money on showers; staff would like to try free showers on timers this year. Airport: Mike Doke stated the County is moving forward with the Windmaster Corner Project for sewer installation. The Commission asked that the Port stay in the communications loop so that all strategies to develop industrial lands in the airport area can be discussed.

Land Management:
Doke included in the packet an informational memo on the current tenants and their needs and issues for the Commission. Added under Action Items were five-year inspections of Port assets for maintenance requirements. Also discussed was the development of a Property Management Policy. This will be included in the general policies review with the new Executive Director.

Economic Development:
Under Action Items the Needs and Issues Inventory was updated to reflect the 2006 priorities (Toll Plaza Improvement Project, Waterfront Infrastructure-Riverfront Pedestrian Trail System, Light Industrial Building, and Shovel Ready Industrial Site-Acquisition and Development). Business Recruitment/Retention and Marketing: Discussion was held regarding development of a Marketing Action Plan. Eric Hovee's report and industry survey should be a key element in its development. The Commission felt it was a good idea for Mike Doke to obtain a realtor/broker license so that the Port can market in multiple listing venues.

Communications and Public Relations:
The Port has yet to develop an annual report on the "State of the Port" for publication by July 1 of each year. Bohn would like to prepare such a report and has discussed doing this with the City and County jointly. Commissioner Hosford thought Paige Rouse would be a good person to help put this together, noting that it is important for the Port's accomplishment to be presented to the community.

Five-Year Capital Plan:
Shames reviewed the draft 5-Year Capital Plan with the Commission for budgeting purposes, incorporating assets previously discussed today. The Toll Plaza Improvement Project will combine the lane work, span lock repair, concrete overlay and traffic counter system into one project. A potential parking garage structure by Big 7 was discussed; the ROI would break even but would make Big 7 more valuable by providing parking. The budget includes exterior painting and roof replacement for Big 7. Discussion was held regarding the timeline in master planning for tearing down UTS. Tenants would be relocated to other buildings and would have plenty of notice. It is the Commission's understanding that the odor problem at the wastewater treatment plant will be fixed by the City; the City's waterline project also will be completed this year. The Riverfront Pedestrian Trail System throughout the waterfront is budgeted in anticipation of grant applications. Commissioner Duckwall stated he would like the Port to create ready-to-go industrial facilities and property. Consensus was to move the Port Office to the Marina Center Building. It will be closer for the bridge conduit, provide a conference room space, and provide more room for maintenance. The maintenance building can be renovated for commercial uses and the Port Office Building leased out at commercial market rates. Staff will research costs of building a road infrastructure to the Hook within requirements of Goal 5. This area was fill only and not built or engineered for a road, consequently the gravel and grading work is not effective. The Spit/Hook maintenance work this spring is verbally approved by the Cindy Walbridge, City Planner. Also budgeted are funds for acquisition of future industrial property.

President Bohn then ended the Special Meeting at 4:35 p.m. The Regular Meeting of the Port Commission immediately followed.

1. CALL TO ORDER: President Bohn called the regular meeting to order at 4:37 p.m.
a) Modifications, Additions to Agenda by Staff: Additions to the agenda, under Action Items, included a request for a driveway easement at the John Weber Business Park, and a tenant's lease termination request.

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

3. PUBLIC COMMENT: None.

4. APPROVAL OF MINUTES:
Motion: Move to approve the minutes from the February 21, 2006 regular session meeting.
Move: Watson
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

5. STAFF REPORT:
· Bridge: Linda Shames, Finance Manager, reported that the responsibility for all bridge inspections now comes under the jurisdiction of the Federal Highway Administration (FHWA), which will be administered by the Oregon Department of Transportation, and that future inspections of the Hood River-White Salmon Interstate Bridge will be subsidized through federal discretionary bridge funding. Shames commented that she would attend a workshop regarding the inspection program. A draft Intergovernmental Agreement has been received and will be provided to Attorney Jerry Jaques for review.
· Waterfront Industrial/Planning: A document of "Frequently Asked Questions (FAQs)" has been prepared for Commission review as a follow-up to the public Frontage Road Crossing Forum; the FAQs will be posted to the Port's website. The Second Street Extension Project target completion date is May 31; however, Shames reported the project might be finished sometime in April. Mike Doke, Marketing Manager, reported the Thursday night biking criterion scheduled for the month of April has been canceled because paving the trenched roadway on North Second could not be guaranteed. The decision to cancel the criterion for the bikers' safety was an amicable decision according to Doke. Linda Hull, Executive Assistant, reported that Maritime Services was still working its way through the building permit process before the City would allow them to start working on site at the boat basin. Maritime has begun making payments for the short-term land lease, and has expressed their appreciation of the Port's involvement and assistance.
· Waterfront Recreational: As a follow-up to the City's request last month that the Port consider partnering on an application for pathway and trail grant funds available through ODOT, Shames reported the City decided not to submit an application at this time because, after a visit from two engineers out of the Portland office of HNTB, they needed to put more thought into their concept of a footbridge connecting the skate park to the Hook. Attorney Jaques reported that he is waiting to hear back from City Manager Bob Francis and City Attorney Alexandra Sosnkowski regarding the Hook/Spit rezone, but that he was informed the Port could go forward with the windsurfing and kiteboarding season as the rezone is being worked on. Mike Doke commented that a Waterfront Recreation Committee meeting will be scheduled by the end of April and a meeting will be planned with the school concessionaires for early May. A request for use of the Marina Green this fall for youth flag football was discussed as concurring with Port policy.
· Big 7 Building: Shred Alert has requested carpeting and painting improvements, which have not been done since they moved into their space in 1997.
· Wasco Business Park: The Sale Agreement for the final parcel is an Action Item on the meeting agenda.
· John Weber Business Park: The pending Sale Agreement for Lot 3 was not delivered to the office as expected; Lot 7 is the only remaining parcel at the John Weber Business Park.
· Airport: At the Federal Aviation Administration (FAA) request, the Airport Layout Plan will be updated and Mike Doke commented that the FAA would pay 95% of the approximate $2,300 cost. In addition, the FAA will also pay 95% of the expense involved to revise Exhibit A to the Layout Plan identifying the residential and commercial neighborhood, which now includes the Orcutt property. An update on the building project at the Ken Jernstedt Airfield was not available.
· Other: Linda Shames commented that she was working on the budget and proposed May 8 or May 9 as possible Budget Committee meeting dates, which is a bit later than usual but might provide an opportunity for a new Executive Director to participate in the meeting. Linda Hull and Attorney Jaques reported they had met with City staff (Bob Francis and Alexandra Sosnkowski) to discuss the City's proposed Intergovernmental Agreement for enforcement of Port Ordinance No. 22. The IGA, which will address reimbursement to the City when law enforcement is called by Port staff for Ordinance violations, is still in the revision process. Shames explained one Accounts Payable item was a payment to Hood River County for the low income housing property tax refund that was appealed to the Oregon Supreme Court over the last few years. The Port chose to make a lump sum payment for its share rather than carry a note with the County.

6. COMMISSIONER, COMMITTEE REPORTS:
a, b) Mission to D.C. and Wyden Staff Meeting: President Bohn reported that her participation in the Pacific Northwest Waterways Association (PNWA) Mission to Washington, D.C. was a great opportunity to meet the Northwest congressmen, senators and respective staff and to lobby for the Coalition (Port, City, and County) projects, which include the Port's Toll Plaza project. Bohn reported the 2006-08 elections would make it tough to focus on funding appropriations and projections on markups were unknown. Bohn also reported that the Coalition met with Mary Gautreaux of Senator Wyden's office upon her return from the capitol. Bohn also distributed an update to the November 2005 Project Matrix illustrating a majority of the tasks were on schedule or had been completed and offered her congratulations to staff and commissioners for the progress.
c) Affordable Housing/Industrial Lands Work Group Meetings: Commissioner Watson commented that the Affordable Housing work group was still in the information-gathering stage and that they would meet again on April 4. The group also discussed the County's land donation for an affordable housing project at the northern portion of their parking lot on State Street immediately west of the Asbury Methodist Church that would be offered at below-market rates. In her position on the work group, Watson stated that she would advocate the Port's role of job creation to assist future homeowners and renters in the affordable housing dilemma. Commissioner Duckwall reported the Industrial Lands work group is ready to start reviewing the data that's been gathered in order to modify or ratify the information.
d) Bonneville Dam Tour: The U. S. Army Corps of Engineers invited PNWA members to a tour of the restricted areas at the Bonneville and John Day Dams. Commissioner Hosford participated in this rare opportunity to tour the Locks at the Bonneville Dam and reported on the budgeting, repair, and operational information provided by the Corps. On the lighter side, Hosford reported that the sea lions have become quite adept at hitching rides through the locks on barges so that their foraging for fish has become an expanded problem.

7. OTHER BUSINESS:
a) None.

8. ACTION ITEMS:
a) Wasco Business Park or John Weber Business Park Sale Agreements:

Motion: Move to accept the Sale Agreement and Receipt for Earnest Money with Burck Properties, LLC for Wasco Business Park Lot 4 in the sum of $152,735.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

b) E-Commerce Zone - Resolution 2005-06-6: Linda Hull reported that Bill Fashing, Hood River County Economic Coordinator had requested support of the County's application to be one of six new E-Commerce Zones that will be added to the existing four zones in Oregon. Web-based electronic business would qualify for state tax credits, and Hull reported that the tax abatement would not affect local tax assessment and distribution to local taxing districts.

Motion: Move to approve Resolution No. 2005-06-6 consenting to the addition of an E-Commerce Zone designation to the Cascade Locks/Hood River Enterprise Zone.
Move: Watson
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

c) Closing Extension Agreements: To accommodate the County's delay of a boundary line adjustment, and a business principal that will be out of the country during the scheduled closing date, two Closing Extension Agreements were presented for Commission approval.

Motion: Move to approve Closing Extension Agreement #2 with Hood River Distillers extending the closing deadline from April 1, 2006 to May 15, 2006; and move to approve the Closing Extension Agreement with False Summit Holdings, LLC to extend the closing date from March 31, 2006 to April 15, 2006.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

d) Airport Surplus Property:

Motion: Move to accept the Purchase Offer of $100.00 from Ken and Nancy Tamura for the house located at 1621 Orchard Road, Hood River, Oregon identified by the Port as surplus airport property.
Move: Streich
Second: Duckwall
Discussion: Linda Shames commented the Tamura's will have sixty (60) days to remove the house, which will be over the one-year timeline for the house removal; however, Dave Roberts of the Federal Aviation Administration indicated it would not be a problem but that the grant would need to be closed out by spring of 2007.
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

e) Transportation Enhancement Program (ODOT) - Letter of Intent: The Riverfront Pedestrian Trail System qualifies for a project to be considered for ODOT grants. Linda Hull reported that prior to the June 30 deadline a Resolution would need to be adopted and submitted with the application.

Motion: Move to authorize staff to submit the Notice of Intent to the Oregon Department of Transportation for grant funding from the Transportation Enhancement Program for the Riverfront Pedestrian Trail System.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

f) Indian Creek Trail IGA: The Intergovernmental Agreement (IGA) initiates the transfer of the Pelton water wheel land that runs through the property recently purchased by Columbia Gorge Community College to the Hood River Parks and Recreation District. Hull also noted the Pelton wheel apparatus and debris will be removed by Port maintenance crews, and the college has indicated they would have excavation dirt available to fill in the vault.

Motion: Move to approve the Indian Creek Trail Intergovernmental Agreement with Hood River Valley Parks & Recreation District.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

g) Budget Committee Reappointments:

Motion: Move to reappoint Joe Sheirbon and Brad Dezurick to three-year terms on the Budget Committee.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

h) Wi-Fi Agreement: This agenda item was held over to the April 4 Commission meeting for further clarification.

i) Driveway Easement Request (agenda addition): For more efficient use of Lot 8, Parcel 3 at the John Weber Business Park, owner Jon Davies requested a driveway easement from the Port. Attorney Jaques will incorporate the non-exclusive easement into the deed.

Motion: Move to approve Jon Davies's request for a driveway access easement for John Weber Business Park Lot 8, Parcel 3.
Move: Duckwall
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

j) Lease Termination Request (agenda addition):

Motion: Move to accept the April 30, 2006 termination date of the Arthur Larsen Architect lease and waive the balance due on tenant improvement costs but require Larsen to pay taxes owing.
Move: Hosford
Second: Streich
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

k) Accounts Payable:

Motion: Move to approve Accounts Payable in the amount of $1,338.43 to Hood River County and $7,575.00 to Sheppards, Inc. for a total of $8,913.43. Move to ratify the contract amount of $18,000 with geotechnical and environmental consultant GRI for work associated with the Toll Plaza Project.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich and Watson
MOTION CARRIED

9. ANNOUNCEMENTS/COMMISSION CALL: Commissioner Watson requested advance notification of events scheduled for the Marina Green. Executive Director applications were provided to the Commissioners for their review and discussion at a March 28 Executive Session meeting.

10. EXECUTIVE SESSION: None.

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Port of Hood River Commission
Minutes of March 28, 2006 Special Meeting
Expo Center Conference Room
4:00 P.M.

Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, Hoby Streich, and Kathy Watson; Attorney Jerry Jaques; from staff Linda Hull; guest John Deller from Waldron & Company

Absent: None

Media: None

President Sherry Bohn called the special meeting to order at 4:05 p.m. and the Commission immediately went into Executive Session under ORS 192.660(2)(a), Employment of Public Officers, Employees, and Agents for the purpose of selecting semi-finalists for the Executive Director position. At the conclusion of Executive Session at 5:40 p.m., President Bohn adjourned the meeting. No action was taken.