Minutes of April 5, 2007 Strategic Planning Work Session
9:00 A.M. - Expo Center Conference Room

Media: None

President Sherry Bohn called the strategic planning work session to order at 9:05 a.m. and asked Executive Director Michael McElwee to lead the discussion. McElwee stated that while the Strategic Plan would guide part of the discussion, he would like to focus on the key aspects of Port operations, including key policy issues and potential future projects. There is movement currently on the waterfront and McElwee would like to manage this momentum and its opportunities. McElwee said he would ask key questions of the Commission today, while setting the table for the upcoming budget process.

Financial Management:
Linda Shames, Finance Manager, reviewed the 5-Year Capital Plan items. The current bridge project looks like it will be $1 million below budget, at $3.8 million. However, due to the multi-faceted unique tollbooth requirements, the prefab building installation is three weeks behind schedule. Shames said the bridge lights would be moved out away from the bridge in included in this year's budget for approximately $60,000. Burgess & Niple is inspecting the bridge for ODOT this spring. They will be preparing a scope of work for us at the same time for ongoing bridge painting maintenance work beginning in summer of 2008. Other Capital Plan items pushed out for future funding are the Riverfront Pedestrian Bicycle Trail, a waterfront light industrial building, and acquisition of property.

McElwee noted that the traffic backups at Exit 64 are a continuing issue. He has arranged a meeting with ODOT, City Police, and City Manager on managing the flow through the intersections during peak traffic times. Shames reported that the bridge traffic increased 4%-6% from September to December and southbound is as busy as northbound now. She told the Commission that HNTB will be doing some traffic modeling for how traffic will flow after the electronic tolling is installed. This should be helpful to ODOT as they go into their overpass bridge and lane work next year. Bridge policy to be determined in the future will be changes or variations in rates during peak traffic times.

Under Debt Management, Shames said the only debt the Port continues to have is for the Bridge Redecking Bonds; the payment comes from dedicated bridge funds. Sherry Bohn asked if the Port could obtain bonds for anything else. Shames said if there is sufficient revenue; however, the bridge bonds are associated with all Port assets and there is a percentage formula used to stay within the bond covenants.

Under Expenditure Control/Authority, Shames said there were no comments by the auditors this year for the Commission to review.

Shames is now preparing for the Budget Committee meeting to be held on April 18. She will be developing the detailed schedules for review. The year-to-date for this year's budget came in very close, except for increases in professional services due to the waterfront planning and delta. She also noted that many of the leases are also expiring at the same time. Mike Doke, Marketing Manager, explained that the tenants wanted their leases to coincide with the tax year charges that are assessed on July 1 for the full year. Attorney Jaques explained that if a tenant moved out during the tax year, they would be responsible for the entire year's taxes unless a new tenant moved in and a prorated share could be credited back to the old tenant. Doke said he did not realize that could be done and was structuring all leases to end on the same date. Shames indicated that the trend is to incorporate taxes into the lease rate because tax rates have stabilized and it would be an easier way to manage it. Doke also said Maritime and Boeing both want longer term leases at their current locations. UTS building remains 50% vacant; Wasco has a potential lessee that Doke is negotiating with at the current time.

Asset Management: McElwee stated there have been no noticeable changes in the Return on Investment (ROI) for the asset centers; all except the Bridge are negative ROI. The Expo Center is one asset, however, that will be going from red to black shortly. McElwee said the expansion proposed to the Marina has to pencil through leases of slips and development surrounding it. Each slip is estimated to cost $12-$15,000. He asked the Commission be mindful that the waiting list might represent undermarket lease rates. He explained that he has been thinking about a different way of looking at the asset centers, so that structures and leases produce the revenue that support the amenities. Bohn asked about preparing "business plans" for the Marina and Airport and McElwee agreed that is a good way to study it. Duckwall said maybe the ROI should be set differently for type of operation, i.e., light industrial building, marina, airport, recreation. Streich agreed that the market rate aspect was important to evaluate, especially in planning for loss of bridge revenue in 20 years. McElwee said the Marina area is a good example of having the Marina leases for buildings and slips be self-supporting but do not cover the Marina Park or Marina Green operations/expenses or replacement. Bohn stated a key issue is to recognize that certain asset centers will never make a positive ROI. Shames said the original plan for the Marina Park buildout would have resulted in a revenue neutral situation; buildings typically have a 9-12% ROI. Watson stated there is another return to the community, not ROI, that should be considered. McElwee agreed, stating the Marina Green offers a different type of return but placing them together is unfair to both. He told the Commission he has been thinking about how to define asset centers overall when they perform so differently because the past has been unsuccessful for overall strategy to capture a return on investment. He would like to come back to the Commission with different options and models to see how the asset centers can be financially positive.

Waterfront Planning & Development
McElwee asked the Commission to review the Waterfront Planning & Development key policy issues and potential projects lists. He stated Group Mackenzie's work would be the subject of a work session on April 17 and they will demonstrate the momentum that is occurring on the waterfront currently. Hood River Juice Company has purchased the old Jantzen building and the Expo Center disposition is proceeding on schedule.
Key Policy Issues:
§ Property Disposition: McElwee asked the Commission to review the draft resolution for disposition of waterfront property which establishes the guidelines for staff to follow when dealing with unsolicited offers and other strategies. It would allow for sale of property south of Portway if certain criteria were met; Port would retain ownership of all property north of Portway.
§ Leasing Strategy for Western Power Building: McElwee recommended the leasing strategy for the building be for longer terms at this time for its two tenants because it is a good functional building, both companies employ many people and are not using it for storage.
§ Overall Land Use: The central core of the waterfront area appears to be conducive to light industrial with access by rail and truck. Moving toward the Expo would be smaller lots with pedestrian friendly recreation-compatible businesses. There are current discussions regarding moving the Museum to the waterfront.
§ Phasing: Other questions involve phasing in development of Lot 1, Nichols basin and the truck access road.
§ Light Industrial Water Access: McElwee said this type of access may be gone forever with the silting in of Nichols boat basin. Dredging is problematic and cost-prohibitive and he has no solution to light industrial access at this time. Bohn asked if the Port should identify this as an issue if no Corps assistance will be available. McElwee said Maritime's large float business is the only one affected and there is not much boat building potential here. Watson thought the Port is too small to have everything for everybody and maybe the Gorge Ports should work together to keep this business in the region and recognizing that Hood River may become more knowledge-based rather than industrial based.
§ UTS Portsite: McElwee believes the Port must be proactive in assisting the city with the odor resolution. The building is difficult to lease because of the odor and any new development would be worth less without a fix.
§ Land Acquisition: McElwee reminded the Commission that the Luhr Jensen building is available for sale.
Potential Projects:
§ Design & Construction of Roadway Improvements (Industrial Alley) and Riverside Drive ($1,500,000): The industrial alley access road infrastructure project might have lottery funding as well as state Immediate Opportunity Funding available; McElwee is currently working on that. Riverside Drive is an ODOT-owned road. Construction could start in Spring 2008.
§ Western Power Pathway & Landscape Improvements ($150,000): The waterfront pathway would connect to the Hook and the new waterfront park and add basic beautification.
§ Western Power Building Improvements ($200,000): The exterior needs improvements along with some internal space for longer-term tenancies and would be supported by lease income.
§ Commercial Building ($1,200,000): Commercial space by the Expo might support DaKine and build on the current momentum created by its redevelopment.
§ Small Business Light Industrial/Flex Building ($3,200,000): This could be west of the Expo as smaller businesses will look to locate to the waterfront. Bohn asked about the land between Western Power and the park property and if the UTS tenants could be relocated there first while that area is redeveloped. Duckwall asked about the Light Industrial zone uses and that it needs to be changed to allow the knowledge-based industries with less focus on manufacturing. Bohn asked about the condition of Portway. McElwee said it needs upgrading to city standards, which would include expensive historical light poles. It could then be dedicated to the city or declared a public road; either way would allow development according to Jaques. An LID (Local Improvement District) could also be created which bonds property owners within it for the improvements that benefit everyone and payable through property taxes.
§ Monitoring of Nichols Boat Basin ($20,000): McElwee would like to establish a scientific baseline for water quality, including temperature, turbidity, bacteria, and habitat variables. If quality is lacking environmentally, then the Port should consider filling the basin area. It was asked if perhaps Naito might share in the costs because it might benefit his development to fill in the basin and move the project northward. Jaques said the frontage road study might consider this option as it would free up property on the south basin area for right-of-way.
§ Planning of Lot 1 ($60,000): McElwee stated that although the focus is on the core and infrastructure requirements of developing the waterfront, he is exploring the possibilities of new buildings and other locations. Parcel Y was discussed regarding its strategic placement at the entrance to the waterfront and possibilities of developing a small structure on it. Consensus was to explore an appraisal of the parcel and think of a vision for its use. Lot 1 is a key site and while planning is occurring for the area, Streich asked staff to look into the feasibility of a temporary RV Park.
§ Sewer Plant Improvements ($600,000): The cost could be $600,000 to place a canopy over the operations but the latest study will include a cost for this project.
§ Sustainable Infrastructure Feasibility Study ($30,000): McElwee is pursuing an Oregon Economic Development grant for this study to be completed by fall of 2007.

Recreation
McElwee stated although the Port continues to talk about the Delta with experts, it is apparent that it will not be dredged; the cost-benefit ratio is very low. He would like the Commission to support the cleanup of the west side of the Delta and Event Site area to enhance the windsport recreation industries. Hosford and Bohn asked if the transient room tax would be available for support of this tourism location and if the city and county would assist the Port. The boundary of Lot 100 prepared by Terra Surveying based on deeds and records will be discussed with Department of State Lands (DSL). Jaques said that assumptions were made about Port ownership of the area and that he would recommend pursuing a quitclaim deed to some areas, if feasible.
Key policy issues:
§ Dredging of the Delta for Recreation: McElwee proposed that the sandbar and Event Site might be sculpted together as one beach to enhance recreation there, not dredged. Watson asked if that wasn't a waste of money since it could wash out. McElwee would like to explore some different options with Andrew Jansky that would work with the natural systems. Jansky would need six months time to go through the permitting requirements to do any of this work. Bohn stated the Commission should be mindful of the economic impact to the region, not just recreation, if access is perceived to be lost in Hood River. She had hoped the Chamber and Visitors Center would be more proactive right now to promote the area positively. Watson stated this year's experience is worth watching and learning from and that the Port should develop two plans for permitting, then decide at season's end which one would be best. McElwee said staff will look at the options, be prepared to permit this fall, and seek the best investment for the money.
§ Management Plan for Delta: Staff is in discussions with DSL regarding the Delta issues. They are okay with any cleanup activities. The Marine Deputy is aware of the safety issues and is planning rescues from land this season. The signage is being prepared by CGWA and CGKA with the Port's assistance. Flyers will also be made for public outreach to visitors to motels, shops, and access sites. There are two methods for DSL to use in managing its recreational land: 1) Formal rules through the Land Board and written as statutes/laws, and 2) Local Management Plan whereby the Port, CGWA, and CGKA can sign a non-binding agreement that formalizes the agreed upon rules. Issues that could be included would be safety, motorized access, designated access sites, enforcement, and maintenance. McElwee said DSL prefers the local management plan be implemented and he will report back to the Commission after discussion with DSL.
§ Fee Structures (Event Site, Weekly Pass): McElwee stated the Waterfront Recreation Committee recommended increasing the Event Site daily pass to $5 and instituting a $20 weekly pass. He will bring back staff recommendations to the Commission on all fees at another meeting for consideration.
§ RV Park Location: McElwee had proposed an RV Park by the water treatment plant. Streich asked that the Port consider a temporary RV Park along the old 2nd Street area.
§ R/C Zoning Setback by Boat Basin: McElwee told the Commission that his request to City Council for a 25' setback by the Event Site cruisedock in the Recreation/Commercial Zone change was not adopted, but was told he could take it to the Planning Commission with a specific plan.
Potential Projects:
§ Sculpting and Modification of Delta for Recreation ($80,000): This project would have to be done during the in-water permitting timeframe November through February with completion by Spring 2008.

Marina
Key policy issues:
§ Accommodations for Cruise Ships: McElwee stated the smaller cruiseship vessels can come into the Marina, just the larger ones cannot stop. The trend over the past six years indicates the tour boat business has decreased overall. Their local economic impact appears to be marginal because they bus their passengers to out-of-area attractions and limit their free time in Hood River. Staff will continue, however, to work with the industry.
§ Lease Rates, Structure & Policies for Existing Slips: The Waterfront Recreation Committee asked if sub-leasing would be feasible. Staff will research other marina policies on this and will prepare a recommendation to the Commission.
§ Upgrades to Existing Docks: As part of a phased master plan for the Marina, staff will look at upgrades to the older docks first, including floats and electrical power.
§ Dock Expansion: McElwee said Jansky is working on master marina plan options that might move existing docks and extending them with new construction.
§ Upland Development Potential: McElwee stated the feasibility of developing a new plan for the Marina would look at the market and compatible uses. McElwee will make a recommendation based on finance/market/business aspects and include the development surrounding it. The current Port office building, the maintenance shop, and museum are all part of the developable areas that connect with the Marina improvements.
Potential Projects:
§ Marina Master Plan ($50,000): A master plan should be completed by summer 2007.
§ Boat Dock Upgrades ($300,000): Phase 1 could be completed by summer 2008.
§ Boat Dock Expansion ($2,000,000): Project could be completed by summer of 2009, with use of amortized lease rates.

Airport
McElwee stated the airport's role in the community is important and now is the time to look ahead and be thoughtful of the future. The new air museum will have a positive effect.
Key policy issues:
§ Land Use Policy: Mike Doke said taking the revised Airport Master Plan through County Planning might result in a redefined Airport Development Zone that would allow for additional light industrial development. Moving the FBO to the north side of the airport would open up the southern area for development of airport-compatible businesses and lease income. The Windmaster Sewer project will likely cost the Port approximately $106,000 for ten hookups.
Potential Projects:
§ County Adoption of 2004-2024 Airport Master Plan and Update of Airport Development Zone ($15,000): Target for completion would be in the fall of 2007.
§ Airport Fencing ($150,500): The Airport Advisory Committee recommends this project be completed under the FAA's Airport Improvement Program funding by end of 2007.
§ Pavement Maintenance ($115,000): Scheduled for spring of 2008, this would be funded by 90% grant from Oregon Department of Aviation.
§ Runway, Taxiway Striping ($10,000): To be completed after pavement maintenance.
§ Signage ($1,000): To be posted so that people will not be walking through the grounds around air traffic.
§ Recessed Tiedowns ($5,000): The FBO is requesting upgraded tiedowns for their operations.

Strategic Assets: Bohn asked if there is something the Port can do to revise the light industrial zone to expand businesses eligible for the Wasco building. Doke explained some businesses can apply for a conditional use. However, one problem with Wasco is lack of parking for employees. Streich suggested staff investigate the lot north of Sailworks that is currently for sale to be used for parking. Doke will follow up on that. Bohn was concerned that the first floor has been vacant too long. Doke said there is a potential tenant in negotiations at the current time.

Land Management: McElwee told the Commission that staff continues to look for new light industrial sites and that a wetland assessment is being done on property in Odell. The Port is also pursing funding from the state to form a wetland mitigation bank so that some properties could qualify for development.

Economic Development: McElwee stated staff is preparing a current listing of facilities, including number of employees and payroll. This information is useful to describe the economic impacts of Port-owned property.

Communications and Public Relations: Staff will be meeting with Paige Rouse to discuss updating the communications budget for next year.

McElwee informed the Commission that discussions are taking place with the Chamber regarding temporary space in the Marina Center building which will shortly be the Port Office Building. Tenant improvements are estimated to be $75,000 and the Chamber would be asked to contribute to Chamber-specific improvements, not the basic improvements that would have to be made for any tenant. McElwee will work with the Chamber and come back with options for the Commission to consider regarding tenant improvement costs and lease rates. Shames stated that a 3-year lease at $1.25/square foot would recoup the tenant improvement cost. Duckwall asked that McElwee invite Craig Schmidt to meet with the Commission in an executive session to review its financing structure.

President Bohn then ended the work session at 12:50 p.m. The Regular Meeting of the Port Commission immediately followed after a short recess.

Minutes of April 5, 2007 Regular Meeting
1:00 P.M. - Expo Center Conference Room

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

Absent: Laurie Borton, Staff

Media: None

1. Call to Order: President Sherry Bohn called the meeting to order at 1:00 P.M. following the Strategic Planning Work Session.
a) Modifications, Additions to Agenda by Staff: Linda Shames asked that the approval of Electronic Tolling Equipment be added to Action Items. Linda Hull added Waterfront Recreation Committee under Commissioner, Committee Reports.
b) Information - Communications - Announcements: None

2. Public Comment: None

3. Consent Agenda:
· Approve Meeting Minutes of March 20, 2007
· Ratify LJS Manufacturing, Inc., sublease to Bear Mountain Forest Products, Inc., through December 31, 2007 for certain areas of the building located at 400 Portway Avenue
· Approve Grant of Easement and Agreement to D.M. Stevenson Ranch, LLC, for a perpetual non-exclusive use of a portion of Port property to be claimed by D.M. Stevenson Ranch, LLC, as a setback area for an existing adjacent commercial building

Motion: Move to approve Consent Agenda.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Watson
MOTION CARRIED

4. COMMISSIONER, COMMITTEE REPORTS
a) Waterfront Recreation Committee: Bohn reported to the Commission that the April 2 meeting had approximately 20 attendees and was a good discussion. It was helpful to have Marine Deputy Mike Anderson in attendance. CGKA and CGWA were in agreement that there would be no kite pumping or rigging at the Event Site. She said it was reiterated at the meeting that the Port's policy is no kiteboarding launching or landing at the Event Site or Marina. This message needs to be communicated by both organizations so their memberships will be aware of the safety rules. Hull will continue to work with the groups on signage and communications to the public. Bohn reported that the committee recommended an increase in the daily Event Site parking fee to $5 and to institute a weekly pass for both sites. McElwee said staff will bring back a recommendation on fees to the Commission for approval at a later date. Bohn reported the marina issues were discussed and that apparently with the waiting list at over 70, many people are co-owning boats to get around it. The committee would also like the Commission to review its policy on subleasing. McElwee said staff will bring back information on that issue at a later date for discussion. Commissioner Watson asked where people can swim on a hot day. Bohn said there is no safe swimming area along the river and that signage will show swift currents and drop-off areas. Bohn recommended the Port be very proactive in press releases as the season approaches. McElwee complimented Hull on her efforts to immediately distribute the Committee minutes. The Commission also felt the maintenance crew was doing an excellent job and commented on the cleanup of the rock placque by the footbridge. Bohn said the kiteboarders were asking about extending water and electricity to the end of the Spit. Hull said this was investigated last year and it would involve trenching through dyke boulders and be very costly, but would contact the City to see if there are any alternatives.

5. Action Items:
a) Approve the Purchase of Electronic Tolling Equipment
Motion: Move to approve the purchase of Barrier Gates ($12,285), CCTV Cameras ($23,905), and Smart Toll Loops and Classifiers ($68,035).
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, Watson
MOTION CARRIED

6. Executive Session: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property at 1:15 P.M. Upon conclusion of Executive Session, the Commission was called back into regular session at 1:40 P.M. The following action was taken as a result of Executive Session.

Motion: Move to authorize the Executive Director to execute a Personal Services Contract with Integra Realty Resources valuation and consulting services of the County Museum building in an amount not to exceed $4,000.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Watson
Nay: Streich
MOTION CARRIED

The Commission concurred that McElwee should negotiate with Hood River County to share in this expense.

7. Adjourn: The meeting was adjourned at 1:45 P.M.

Minutes from April 2, 2007
Waterfront Recreation Committee

Attending: Members Steve Gates, Lori Stirn, Michael Schock, Laney Gale, Doug Archbald, Richard Sassara, Ann Frodel; Commissioners Sherry Bohn and Hoby Streich; Staff Members: Linda Hull, Mike Doke, Laurie Borton; Others: Andrew Jansky (Flowing Solutions), Hood River County Sheriff Marine Deputy Mike Anderson; Media: Matt Preusch, Oregonian

Absent: Michael McElwee, Executive Director

1. Introductions: Sherry Bohn opened the meeting at 3:30 p.m. and welcomed the audience of approximately 20 people. Bohn said the purpose of the meeting was to provide the committee an update of the action steps taken thus far regarding the recreational issues of the Delta, to discuss any proposed solutions to the congestion and user conflicts, and to discuss other recreational issues for the Port Commission to consider for policy and planning. Invited guest, Stephen Purchase, Department of State Lands (DSL) Assistant Director, was unable to attend.

2. Delta Update/Actions to Date: Many serious issues were identified at the February 13th Waterfront Recreation Committee meeting that the Port of Hood River is working to resolve collaboratively with several agencies, local groups, and professionals. The areas identified are outlined below and include immediate and long-term actions that have taken place or are currently planned.

Facts Established: The November 2006 landslide debris flow containing logs, debris, dirt, sand, rocks and boulders, created 26 acres of new land projecting east and west from the sandbar at the confluence of the Columbia and Hood River, according to Andrew Jansky, Flowing Solutions. This area contains approximately 750,000 cubic yards of additional dirt/sand with at least that same amount on top of the pre-existing sandbar area. After studying and comparing the pre-Bonneville Dam historical data, Jansky concluded the Delta is recreating itself in the same form as before Bonneville in 1935 as it seeks equilibrium and balance of the forces of the two rivers.

Although the existing channel into the Nichols basin is authorized by the U.S. Corps of Engineers, they do not have the funding to dredge it, and probably will not anytime in the future. Private dredging would cost $3-$10/per cubic yard depending upon method used. The dredging period is permitted during specific in-water dates (November - February) and must be permitted by the Corps, Oregon Fish & Wildlife, and Department of State Lands (DSL). The Corps may, however, consider a feasibility study for funding in 2008 to determine the long-term impacts of the debris flow event on the Hood River and the Delta. This study would evaluate the costs, benefits and options for removing the Delta and evaluate alternate community navigation access points on the Columbia River; the blockage of the Nichols basin has essentially eliminated industrial access to the Columbia River. The Queen of the West, tour boat, is also prohibited from stopping in Hood River; however, most of the smaller cruise vessels (Spirit of Discovery, Island Spirit, Safari Quest) can access the Port's Marina basin dock.

The Corps Reservoir Control Center manages the water level of the Columbia River and it has fish and power agreements to consider as priorities. Jansky's depiction of the water elevations (76'-79') over the sandbar demonstrates the caution that must be used by recreationalists on the sandbar. The water levels may fluctuate several feet during one day and the debris may be submerged at any time. Jansky's information is posted on the Port's website at www.portofhoodriver.com.

Ownership Issue: The Port hired Eric Carlstrom, Terra Surveying, to review deeds and easements associated with the waterfront boundaries, which are currently being reviewed by DSL's legal department. The Port is in discussions with Stephen Purchase regarding an interagency management agreement for managing this site, including control of access and uses of the land, similar to other governmental agreements used by DSL. However, DSL is very supportive of a local option for managing the land and for resolving conflicts without the use of a management agreement. They do have the authority to close down an area to all public use if conflicts, misbehavior and damages are not controlled.

Andrew Jansky and James Glaeser, NW Hydro, worked together using Terra's survey markers to study the water levels and topography. The result will be a composite contour survey map indicating detailed survey information, which aids in the ownership determination as well as other long-term informational studies of the ever-changing land. This information will serve to establish the baseline for future erosion or accretion rates at the Delta site.

Congestion/Public Safety/Enforcement: Recognizing that the Event Site area will have increased congestion by various users of the site because of the sandbar's encroachment on its eastside, the Port immediately began working with the Columbia Gorge Windsurfing Association (CGWA) and the Columbia Gorge Kiteboarding Association (CGKA) to determine mutually acceptable safe zones which will demarcate windsurfing and kiteboarding zones. The groups worked on a graphic that can be posted as signage at all waterfront sites showing the "safety no-wake zone" north of the Event Site, demarcation zones for each sport, and all agreed-upon launch sites. The signage would also depict danger-caution areas of debris, shallow water, steep drop-offs and swift currents. The groups believe they can educate and self-enforce their respective users accessing the water from the Event Site and the Spit. The Port, CGWA and CGKA will be proactive in collaborative press releases, informational flyers, and will provide people to communicate the seriousness of separation of the activities in a small area. The guidelines would apply year-around and for both high and low water levels.

Hood River County Marine Deputy, Mike Anderson, began immediately to plan for placement of Oregon State Marine Board approved hazard buoys at key cautionary submerged debris areas and along the perimeter of the outer edges of the land mass where steep drop-offs are located. Anderson also requested the Event Site curb be marked "Fire Lane - Tow-Away Zone" so that emergency responders can have access at all times to the waterfront. Anderson will also work the Port, CGWA, and CGKA to correctly mark the caution areas that presently exist.

Debris removal, volunteer work parties: The Port contacted the Corps to see if it could hold water back, lower the Bonneville Pool and "flush" the debris off with high water. The answer was "no" as there is not enough flow force to do this. They will be conducting normal spring dam operations, which cause high flows and pool elevations that may create some additional changes on the Delta, however.

Discussions with the Corps, DSL and local agencies showed support for volunteer work parties to assist in debris cleanup. The Port was told we could pile up wood debris and burn it or float off small pieces, as long as no excavation by heavy equipment was done below the Ordinary High Water mark and embedded debris was left undisturbed. We will need to coordinate the work parties under DSL's volunteer program requirements.

Nichols Basin Water Quality: The Port contacted Mike Matthews, Hood River County Health Department, to set up water testing for bacteria to ensure the low water levels will not impact recreational users. The basin does receive some percolation of fresh water through the dike and from the channel during higher water. Also, the Department of Environmental Quality Project Manager of the site, David Anderson, assures the Port there is no human health danger from chemicals in the basin.

3. Andrew Jansky, Flowing Solutions: Andrew Jansky provided an update to the committee on the Hood River Delta. He clarified that the original sandbar in 2005 consisted of approximately 60 acres, including the shallow areas. Therefore, the 2006 debris flow expanded this area another 26 acres (750,000 cubic yards). The additional sand deposited on top of the existing sandbar, calculated at eight-feet average height, added an additional 750,000 cubic yards of volume. Jansky reminded the committee that in-water removal or dredging can only take place from November to February. He also stated the high spring flows have already created changes in the landscape from his prior visits to the site.

Jansky stated he understands the user groups are coordinating a united effort to address safety issues that may affect their recreation. Jansky identified several measures that may be viable now: clear hazardous wood/debris, mark hazard areas/buoys, upland signage with graphics depicting hazard areas and preferred sail/kite zones, post swimming warnings, and determine policy on vehicles and camping.

Jansky demonstrated how the pool elevation impacts the size of the sandbar and that even a small change in elevation or flowage can result in a big impact. The pool elevation changes hourly and daily predictions are difficult to make. For example, this year on March 30, the flow was 266 cubic feet per second (cfs); on March 31, it was 300 cfs - the elevation of the water fluctuated seven feet. Based on historic data at the Corps, the least amount of elevation in the pool occurs annually in August. He suggested the Port place some kind of gauge on a webcam that could indicate the current real-time elevation to users in Hood River.

The effects of the Delta on commerce are several: the boat basin is now blocked for industrial and cruiseship access and the Event Site's windsurfing launch site is partially constricted. One option identified by Jansky would be to dredge 150,000 to 250,000 cy out of the channel and re-deposit onto the beach. However, the cost is prohibitive and it could fill in with the next debris flow. The Port will be discussing the options with the Corps in the immediate future.

Short- and long-term planning is now taking place so that permitting needs and funding resources can be identified. If any dredging or sculpturing of the area is proposed, the permitting process needs to start soon for the in-water work period.

Richard Sassara asked if a permit was for one-year only? Jansky said they can range from 2-to 7-year timeframes depending upon type and agency. Ann Frodel asked if the Spit dyke could be cut so that the Hood River could naturally flow into the Nichols basin. Jansky stated it could be part of the long-term options studied by the Port; there would also be impacts to habitat and fish that would have to be addressed environmentally. A question was asked about why we even need a boat basin there at this time if there is no Nichols Boatworks business. Jansky said this is a long-term planning issue for the Port to consider.

4. Safety Launch/Demarcation Zones-CGWA, CGKA: Bruce Peterson, CGWA (Columbia Gorge Windsurfing Association) member, told the committee that CGWA and CGKA (Columbia Gorge Kiteboarding Association) members met together to discuss the creation of a new "safety zone" for the sports. Peterson explained that in years past, multiple lanes provided separation of the two sports. The Delta encroached into the Event Site launch area so that the congestion of the two sports is magnified in that area. The two organizations agree that safety should be a priority with the change in the Delta and worked together on the area that should be a 600' square space for low speed, no jibing, no kiting area directly in front of the Event Site. This zone would be effective for both high and low water conditions and year around. Sherry Bohn reminded everyone that the current Port policy is signed at all sites: there is no kite launching allowed at the Event Site or Marina. The groups agreed that no kite pumping or gear should be allowed on the Event Site beach; if parking at the Event Site kiteboarders will need to carry gear to the sandbar before inflating and arranging kite lines. Peterson stated the rules are agreed upon and understood and now the work will be to communicate it to all users, both local and visitors.

Deputy Anderson added that two weeks ago with approximately 50 people in the water mixing the two sports, there were many near misses; he had extreme difficulty in rescuing a windsurfer near the Event Site. He asked that his boat be given a 500' clearance when he is in the area and that specific message should be indicated somewhere on the materials for communication.

A question about swim areas was asked. Anderson stated there are no safe swimming areas; it is 'swim at your own risk' on the waterfront with ever-changing water levels, swift currents, and steep drop-offs. He would not support any buoy line marking off a swim area.

Frodel and Doug Archbald both felt the kiteboarders should not park at the Event Site. Others in the audience believed they might only use the Event Site parking on low water days and during high water would prefer the Spit parking area, which also costs less.

The status of Lot 6 was discussed. Frodel said the City has not received any plan from anyone to use it, but if CGWA had a proposal for its use they should meet with the City administration.

Anderson was asked why the buoys will be hazard buoys and not regulatory. He stated that the regulatory buoys have to be state authorized and written into the state marine laws. Hazard buoys can be placed as marker buoys for cautionary areas. When asked if he could cite people who violate the rules of the safety zone, he replied that the safety zone has to be self-regulated by participants. However, the Port could request repeat violators be banned from using the area and he can then cite them for trespass if they return. Anderson also said no metal stakes or buoys of any kind can be placed as warning markers. Everything placed in the submersible water area has to be navigable. Anderson stated he is in support of the safety zone and is encouraged the groups have come together to address the issue. He and Peterson will meet to discuss the ways the area can be marked for the safety zone in a way that is approved by the regulatory agencies.

Anderson said he plans to place three other perimeter hazard buoys in the area. One will mark the drop off area on the north side of the sandbar and two will mark the channel entry into the marina boat basin.

5. 2007 Issues & Information/Recommendations:

Launch/Safety Zones: A motion was made by Ann Frodel to recommend to the Port Commission to approve the safety zone signage as proposed by CGWA and CGKA. Port staff would then work with the groups to finalize, fabricate and distribute. It was suggested that color posters be placed in the shops and motels for tourists to be aware of the river dynamics and launching areas.

Kicker/Slider: It was reported there is a group of kiteboarders constructing a jumping apparatus. Deputy Anderson said it is considered a Special Use Device and must be permitted by the Oregon State Marine Board. He would not allow it in or near the safety zone and there may be other requirements associated with its placement. He will remove any illegal buoys or markers.

Enforcement: Anderson stated his main concerns focus on rescue requirements. He asked for an Event Site "No Parking - Tow Away" zone for emergency vehicle access. He also said his marine boat is not maneuverable at low speeds and during rescues windsurfers and kiteboarders need to give him at least 500' clearance. Emergency vehicles will also access the sandbar via the Spit road and they have a special gurney to traverse the sandbar terrain. He noted that the Nichols basin is not going to be a good launch area for personal watercraft (jet skis) due to the lower depths and increased congestion. He will be closely monitoring that area this season.

Fees/Variable Passes: Discussion followed regarding fees. The recreational access sites continue to be revenue negative and costs continue to increase. Lori Stirn made a motion to recommend to the Port Commission that the Event Site daily parking fee be increased to $5, weekly passes be instituted at the Event Site and Spit ($20/$10) and annual passes for additional family vehicles ($20), annual passes remain the same ($50 Event Site; $25 Spit; $100 Overlength), and $2 daily Spit.
q Marina Issues: The waiting list continues to increase for slip moorage. Giving preference to Gorge residents was discussed. Laney Gale asked Laurie Borton is she could break out the current tenant list to over and under 30' for demographics. She doesn't think raising the moorage fees will create any more movement from tenants using the slips for storage. Jansky said his data indicates the average boat owner uses the boat 6 times per year. The committee discussed the loophole to get around the waiting list and that is to purchase a boat of a current tenant and pretend to be co-owners. Staff was asked if they could survey other marinas on subletting policies and see if the Commission would consider changing its policy on no subletting. Jansky said he is working with the Port on a Marina Plan for future budgeting that may increase the available slips. It was also asked if a dry storage area and/or hoist could be constructed for tenants.

q Prior Issues Update:
§ Signage: 3 bilingual signs for Marina Beach to be installed shortly. Thanks to the Lions Club, Rodger Schock and SignMedia; Lions may provide life rings later.
§ Signage regarding Waterfront Access proposed by CGWA/CGKA will be presented for committee review on April 2.
§ Volunteer Camp Host: Memorial Day weekend until Labor Day; Duties will be night security, closing & opening Event Site daily; lost & found - Will advertise position locally and through CGWA.
§ Event Site/Spit booth may remain open until 8:00 P.M.
§ Event Site/Hook: additional directional signage added (exits, to Hook, etc.); more picnic tables; staff will assist CGWA in cleanup projects.
§ Event Site/Spit drop gates: postponed for now: "All Vehicles Must Stop" signs will be added at booths.
§ Vending machines at Event Site: Coke will place machine May-September. If not enough volume they will remove, but willing to try one season.
§ Enforcement all sites: Port may hire additional adult to monitor parking, loading zones, 20-minute zone, dogs, garbage, etc.
§ Marine Deputy Mike Anderson requests Event Site No Parking Red Zone for emergency vehicles be enforced and marked as a tow-away zone (west of restroom).
§ Concessions: Windsurfing rental area to be located at east end of Event Site by cruiseship dock, not in main parking lot; water & power available.
§ CGWA will place a changing room at the Hook with Port assistance; additional portable toilet will be added on road to Hook, other areas where needed.
§ Marina: Planning has begun for additional moorage and reconfiguration; 63 (under 30') and 30 (over 30') on slip waiting lists; people are "sharing" boats now - Commission spring planning can consider differentiated fee schedule.
§ Website adding links or cams for bridge, weather, wind, water levels, surveys for public input (i.e., should dogs be banned at the Event Site? J), Plus credit card transaction capability.
§ Lot 6 water access: Contacted Bob Francis and he said he has not received a plan or request to date from any user associations.

Next Steps:
§ Signage finalized and posted all sites: safety zone, hazard areas, launch sites, swim at own risk, sandbar is no vehicles, no camping.
§ Event Site signage: No kite launch or pumping/gear.
§ Establish work party guidelines for CGWA/CGKA volunteer participation.
§ Staff/CGWA/CGKA work together on Waterfront Safety/Guidelines flyer.
§ Deputy Anderson will meet with CGWA/CGKA on hazard marker placement.
§ Follow-up with DSL on management issues and management agreement.
§ Staff, Deputy Anderson to meet with schools in May regarding personal watercraft, rules and school issues.

Meeting was adjourned at 5:35 p.m. Next Meeting: Date to be determined.

Port of Hood River Commission
Meeting Minutes of April 17, 2007 Regular Session
Expo Center Conference Room
5:30 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

Media: Sue Ryan, Hood River News

1. CALL TO ORDER: President Bohn called the regular session to order at 5:34 p.m.
a) Modifications, Additions to Agenda by Staff: Executive Director Michael McElwee requested two Action Items be added to the agenda - an Engineering Services Proposal from Burgess & Niple to provide paint inspection drawings and specifications for the Hood River-White Salmon Interstate Bridge, and a Consulting Contract with RV Park Consulting LLC for a feasibility study to locate a temporary recreational vehicle park on the waterfront.
b) Information, Communications, Announcements: None.

2. PUBLIC COMMENT: None.

3. CONSENT AGENDA:
· Approve minutes of April 5, 2007 strategic planning work session and April 5, 2007 regular meeting
· Approve contract with Santoyo Construction in the amount of $18,000 for the Second Street east sidewalk
· Approve contract with TransCore in the amount of $66,620 for electronic toll card reader and transponder equipment
· Approve Marina Center Tenant Improvement Project change orders in the total amount of $3,647.85 for additional lights and door modifications
· Approve annual audit for the year ended June 30, 2006 as submitted by Onstott, Broehl & Cyphers, P.C. Certified Public Accountants

Motion: Move to approve Consent Agenda.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

4. COMMISSIONER, COMMITTEE REPORTS:
a) Urban Renewal: Commissioner Hosford reported seasonal banners will soon be displayed from City light poles, and Commissioner Streich reported the Oak & Fifth Streets project is on schedule for completion.

5. DIRECTOR'S REPORT: McElwee commented that staff and Pageworks Design have begun work on the summer newsletter that will feature a "State of the Port" piece. Operations Manager Linda Hull has taken the lead in the Delta management plan by coordinating the efforts of the Columbia Gorge Windsurfing Association, the Columbia Gorge Kiteboard Association, and the Hood River County Sheriff's Office Marine Patrol. McElwee commented on his efforts to secure $2 million in state funding for waterfront development infrastructure through hopeful passage of Senate Bill 1027, which passed the first hearing by the Oregon

Senate Business Transportation and Workforce Development Committee and is now going to the Finance Committee. McElwee reported he is also pursing Economic Development Administration (EDA) funding for waterfront development infrastructure with the assistance of Bill Fashing, Hood River County Economic Development Coordinator and Lee Curtis, Mid-Columbia Economic Development Department.

6. REPORTS AND PRESENTATIONS:
· Waterfront Development Implementation Strategies: McElwee introduced Mark Clemons and Dale Poppe of Group Mackenzie, who presented the Commission with a draft development strategy to achieve public objectives along with graphics illustrating existing land uses and development concepts and strategies. Clemons commented that much of their work was prefaced on the E. D. Hovee market study and that comments and input from the Commissioners would assist them in moving forward with drafting a full report on the strategy and preparation for a public meeting. Clemons and Poppe addressed questions from the Commission, and audience comments were allowed. McElwee requested that input from the Commission, in addition to the discussions on the impacts of truck and vehicle traffic, zone changes, and sustainability standards, should be provided to staff for forwarding to Group Mackenzie.

7. ACTION ITEMS:
a) Burgess & Niple Contract (addition): Finance Manager Linda Shames reiterated that bridge inspections, including the Port-owned Hood River-White Salmon Interstate Bridge, now come under the jurisdiction, and expense, of the Oregon Department of Transportation (ODOT). ODOT has contracted with Burgess & Niple for a fracture critical bridge inspection and staff is recommending the approval of a proposal for engineering services proposal to provide paint inspection drawings and specifications.

Motion: Move to authorize the Executive Director to execute an Engineering Services Proposal with Burgess & Niple in the amount of $19,500 to provide paint inspection drawings and specifications for the Hood River-White Salmon Interstate Bridge.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

b) RV Park Consulting Agreement (addition): Following up on discussions as recent as the April 5 strategic planning work session, McElwee presented a consulting agreement for a feasibility study for locating a recreational vehicle park on the waterfront. In the near term, the RV park would have limited use on a seasonal basis, and McElwee noted that Attorney Jerry Jaques had not yet reviewed the agreement.

Motion: Move to authorize the Executive Director to execute a Consulting Agreement, subject to Counsel's review, with RV Park Consulting LLC in the amount of $2,500 plus expenses not to exceed $400 for a feasibility study to locate a temporary recreational vehicle park on the waterfront.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

8. COMMISSION CALL: Streich commented that he and McElwee would be meeting with Dean Cameron within the next couple of weeks to discuss waterline issues at Wasco Business Park. Streich asked if there was an update on the wastewater treatment plant odor fix and McElwee responded that he did not have any new information. President Bohn reminded the Commissioners about the 5:00 p.m. budget committee meeting the following evening at the Expo Center conference room.

9. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property at 7:10 p.m. Upon conclusion of Executive Session, the Commission was called back into regular session at 7:46 p.m. The following action was taken as a result of Executive Session.

Motion: Move to approve Resolution No. 2006-07-5 authorizing staff to enter into negotiations with the Hood River Juice Company for disposition of Port property.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

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