Minutes of August 7, 2007 
Regular Session
5:30 P.M. - Marina Center Boardroom

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

Absent: Commission Kathy Watson; from Staff, Linda Hull

Media: Sue Ryan, Hood River News

1. CALL TO ORDER: President Duckwall called the regular session to order at 5:30 p.m.
a) Modifications, Additions to Agenda: None.

2. PUBLIC COMMENT: None.

3. CONSENT AGENDA:
· Approve minutes of July 17, 2007 regular meeting
· Approve Hood River Interstate Bridge Toll Facility Improvements Change Order #12 in the Amount of $9,223
· Approve Accounts Payable in the amount of $1,200 to Terra Surveying
· Approve Amendment to Contract with Flowing Solutions in the Amount of $6,000 for Additional Services Associated with Marina Planning

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

4. COMMISSIONER, COMMITTEE REPORTS: Commissioner Bohn presented a Hood River County Economic Development Committee report. Bohn stated it is not yet clear how the state process will change in project selection, but the Port, County and cities of Hood River and Cascade Locks will each need to submit their "Needs and Issues" projects in September. Although the focus will be on infrastructure projects Bohn emphasized all projects should be submitted for consideration and the list will be winnowed down for final submission. Executive Director Michael McElwee commented that Oregon Economic and Community Development Department (OECDD) funding for Needs and Issues has been reduced by $100 million.

5. DIRECTOR'S REPORT: McElwee reported that he had talked with Linda Hull, Operations Manager, earlier in the afternoon and that Hull sends her best to the Commission and staff. McElwee noted highlights on the following areas:
· Staff & Administration - McElwee reported on one presentation at the August 1 quarterly Oregon Ports Group meeting that indicated the Hood River Port District tax rate was next to the lowest of all the Port districts in the state, and this rate would figure into projects funded by OECDD. McElwee also commented that $100 million was available for intermodal projects through 'Connect Oregon' and he would look into whether or not any projects met the criteria.
· Waterfront Recreation - A stakeholder meeting regarding current issues, impacts and potential future modifications of the Hood River Delta was held on July 26. The basic concept of moving a small portion of the westerly edge of the Delta and placing the material in front of the Event Site was favored. The concept will be refined for further consideration by the Commission.
· Waterfront Development - McElwee noted the City had entered into an engineering design contract and that work was underway related to the Wastewater Treatment Plant odor problem. McElwee expects the City will approach the Port for financial assistance and the Commission would need to determine a response. As staff and the Commission move forward preparing for development on the waterfront, McElwee recommended that discussion on two agenda items for on-call site planning and architectural services, and for survey and land use application technical support be held over for discussion in Executive Session.
· Airport - McElwee reported staff had been working closely with representatives of the Western Antique Aeroplane and Automobile Museum for the September 7-9 museum grand opening and Fly-In. Commissioner Streich asked if Flightline Services, the airport's FBO, had approached the Port for financial support with fueling as had been done in previous years. Mike Doke, Marketing Manager, stated the FBO was not as involved with this year's Fly-In and a request had not been received. After discussion, the Commission concurred with McElwee's recommendation that the Port show their continued support of the museum grand opening and Fly-in by becoming an official sponsor at a cost of $500.

6. REPORTS AND PRESENTATIONS:
· Recreational Vehicle Park: Options were identified for Commission discussion regarding the potential for a recreational vehicle (RV) park on the waterfront. McElwee noted that although the RV park would meet a demand and provide an interim use for vacant property, his analysis also showed that zoning would be a significant challenge. McElwee asked for direction on which of the four options the Commission would like staff to pursue: Option 1 - take no further action and abandon the project; Option 2 - re-evaluate the RV potential at a later date when progress on other waterfront projects is determined; Option 3 - develop a preliminary feasibility study, with minimal outside help, over a 2 to 3 month period at an estimated cost of $5,000 to $7,000; or Option 4 - prepare a full feasibility analysis, with the assistance of a consultant team, over a 4 to 6 month period at an estimated cost between $45,000-$75,000. Commissioner Hosford spoke out in favor of the second option, stating that energy should be put into finishing current projects and the RV park should be re-evaluated at a later date. President Duckwall then polled the other Commissioners. Streich commented that he was concerned with the timeline of the second option. Bohn stated that, at first pass, abandoning the project was her choice but that she could go along with re-evaluating the concept at a future date. After having spent two years working on a zone change for the entire waterfront, Bohn admitted her bias that a zone change for a small parcel was a frightening prospect. Bohn was not comfortable with the idea that it would take seven years to realize a break-even point on an approximate $1.7 million investment for a temporary park and she strongly believed that development on Lot 1 would occur within 3 to 5 years. Bohn also stated that she would rather have staff do a good job on current projects than being stretched thin by additional tasks. Duckwall said the RV park concept was worth pursuing but he didn't expect the length of time it would take the project to break even, and it was his opinion that more critical issues were in store for development on the waterfront and RV park should be re-evaluated at a later date. Duckwall recapped the discussion stating there was consensus that Option 2 was the proper direction to give staff.
· U.S. Army Corps of Engineers Study of Delta: McElwee stated he had been working with the Corps (COE) on and off since March and the collaboration had been terrific. McElwee commented the study would provide the Port with a baseline on the Delta and provide data on what could or should be done regarding anticipated future changes. The study would also look specifically at navigational and habitat issues of the Nichols Boat Basin and provide factual information that would be important for understanding future uses. McElwee stated that recommendations on a Delta Impact Assessment study by the COE would be brought back to the Commission at the September 4 meeting and he would include a summary of the work that has been done by the Port that may qualify for credit towards in-kind services to offset the Port's potential contribution of $70,000 to $90,000. Bohn and Duckwall suggested that Bob Naito and the Division of State Lands should be contacted to determine if either party had an interest in participating financially in the Delta study, which is a 50/50 grant under the Planning Assistance to States Program (PAS).

7. ACTION ITEMS:
a) Authorize the Port to Execute an Agreement with Mid-Columbia Council of Governments Regarding Lease Space at the Wasco Business Building: Doke said final remodeling plans of approximately 2,500 to 3,000 square feet of first floor tenant space in the building are underway and the agreement formalizes cost sharing. Construction documents are expected the week of August 20 and the project should be bid the following week. Mid-Columbia Council of Governments is anxious to sign the agreement pending Commission approval according to Doke. Bohn inquired if there was a requirement to consult the current building tenant, Renaissance Learning. Attorney Jerry Jaques stated that Renaissance would need to be consulted but only with respect to their sound booth room; otherwise the second floor tenant had no veto power.

Motion: Authorize the Port to Execute an Agreement with Mid-Columbia Council of Governments Regarding Lease Space at the Wasco Business Building.
Move: Bohn
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

b) Authorize the Port to Execute a Contract with Group Mackenzie for On-Call Site Planning and Architectural Services in the Amount of $35,000: Discussion was deferred to Executive Session.

c) Authorize the Port to Execute a Contract with Terra Surveying for Survey and Land Use Application Technical Support in the Amount of $10,000: Discussion was deferred to Executive Session.

8. COMMISSION CALL: None.

9. EXECUTIVE SESSION: At 6:15 p.m. President Duckwall called the Commission into Executive Session under ORS 192.660(2)(e) Real Property. At 6:45 p.m. the Commission was called back into Regular Session and the following action was taken:

Motion: Authorize the Port to Execute an Agreement with Group Mackenzie for On-Call Site Planning and Architectural Services in the Amount of $35,000.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED
- - - - - - - - - - - - -
Motion: Authorize the Port to Execute a Contract with Terra Surveying for Survey and Land Use Application Technical Support in the Amount of $10,000.
Move: Streich
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, and Streich
Absent: Watson
MOTION CARRIED

10. ADJOURN: President Duckwall adjourned the meeting at 6:47 p.m.

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Minutes of August 21, 2007
Regular Session
5:30 P.M. - Marina Center Boardroom

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

Absent: Commission Kathy Watson; from Staff, Linda Hull

Media: None

1. CALL TO ORDER: President Duckwall called the regular session to order at 5:30 p.m.
a) Modifications, Additions to Agenda: The addition of an Urban Renewal report was requested by Commissioner Hosford.

2. PUBLIC COMMENT: Jon Plaster did not address the Commission but provided written comments concerning Event Site issues. Executive Director Michael McElwee stated the Commission would be advised of staff's response. Andy von Flotow commented on the current negotiations for the Expo Building and property the Port has entered into. Mr. von Flotow said it was galling to him and other constituents that the transaction was not open and transparent and suggested the Commission was making a mistake and further emphasized it was ethically imperative to make the sale an open process. President Duckwall responded the process leading to the current negotiations was legal and that alternate bids, which von Flotow was ready to submit, would not be considered. Von Flotow responded that while the Port was legal in what it was doing, nonetheless it smelled. Commissioner Bohn questioned von Flotow on how keeping 80 jobs in the community was 'smelly' and von Flotow replied the subject of jobs was a slippery item because giving property for less than market value for the promise of job retention in the community was the "promise of the week" and there was the possibility the Port was being hoodwinked. Duckwall stated that von Flotow's comments were welcome but wouldn't be debated and reiterated that other offers would not be entertained at this time. McElwee suggested to von Flotow that his offer could be considered a backup proposal, but that the process leading up to the current negotiations were public and above board and specific performance criteria would need to be met for the deal would be considered and presented to the Commission for approval. Mr. von Flotow responded by suggesting the Port describe the deal, open it for bid, and go with the best offer. Von Flotow, who left a sealed bid on the table before leaving the meeting, was thanked by the Commissioners for his attendance and comments.

3. CONSENT AGENDA:
· Approve minutes of August 7, 2007 regular meeting

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

4. COMMISSIONER, COMMITTEE REPORTS:
· Airport Advisory Committee - Mike Doke, Marketing Manager, reported that he planned to present the Airport Master Plan ("Plan") at a September work session of the Hood River County Commission for adoption into the County's Transportation Systems Plan. Doke stated if the County Commission approves a review, the Plan would be sent to the county planning department and eventually the Hood River County Planning Commission for consideration. The review would take six months or longer and Doke said the Port would likely hire a planning consultant, especially if there was indication of a zone modification.
· Urban Renewal - Commissioner Hosford reported that construction work on Oak Avenue between 3rd and 5th Streets would begin in February 2008 and the City would facilitate weekly meetings with block captains and designate one person as the contact with the contractor in order to keep the downtown businesses informed. Hosford also commented the Port may be contacted by downtown businesses regarding employee parking on the waterfront.

5. DIRECTOR'S REPORT: McElwee highlighted the following areas:
§ Staff & Administration - Staff recommended that user fees be waived for the annual Labor Day 'Cross Channel Swim.' There were no objections from the Commission to waive fees for the Chamber of Commerce's use of the Marina Green, Marina Park picnic shelter, and the commercial overflow dock.
§ Waterfront Recreation - Naito Development has indicated a potential partnership in a study of the Delta that would be done by the U.S. Army Corps of Engineers (Corps) to provide baseline data on what could or should be done regarding anticipated future changes. McElwee commented that staff recommendations on the Planning Assistance to States (PAS) program, which is a 50/50 grant, would be presented to the Commission at the September 4 meeting.
§ Waterfront Development - McElwee reported Group Mackenzie would be presenting an overview of the waterfront development strategy at the August 27 City Council meeting and the City would be asked for their input on the Port's objectives and implementation steps. A brief report should be available for the Commission's review at the September 4 meeting regarding sustainable and renewable energy opportunities.
§ Bridge/Transportation -"BreezeBy" testing, the Port's electronic toll collection system, should be underway within the next two weeks. Hosford commended Duckwall and Finance Manager Linda Shames on their discussion of the system on the August 20 KIHR morning radio program.

6. REPORTS AND PRESENTATIONS:
· Conceptual Plan for Minimal Delta Modification - A graphic prepared by Andrew Jansky of Flowing Solutions illustrating limited grading and excavation of the Delta's westerly edge was presented to the Commission for comment. The fill would be deposited at the Event Site resulting in a sandy versus cobble base and also to the westerly groin of the Event Site. McElwee said the mechanism to move the fill, if permitted, had not been determined. The graphic also illustrated an expansion and deepening of the flushing channel to the boat basin. Bohn commented there may be opposition to a channel modification if access to the Delta from the Event Site is eliminated. McElwee commented that preparation of an application for minimal Delta modification did not mean it would be done if approved, or done if the modification wasn't cost effective. With regard to the potential PAS grant and Delta modification, Bohn inquired if more consideration needed to be given to the placement of pedestrian footbridge as the Port moves forward with the Frontage Road feasibility?
· Preliminary Conceptual Plan for Waterfront Subdivision - Work is in progress from Group Mackenzie on a strategy to create legal lots to accommodate future development. Further discussion got sidetracked when McElwee reported on a meeting earlier in the afternoon with the Oregon Department of Transportation (ODOT), who is weighing in on the Hood River Juice Company project relative to traffic patterns on the waterfront and a potential northern relocation of the North 2nd Street/Frontage Road interchange. Shames explained the current interchange is now sub-standard and if the feasibility of the Frontage Road Project is determined, the interchange would not connect to Riverside Drive since standards now require interchanges to be located one quarter mile from exit/entrance ramps. Commissioner Streich expressed his concern with the financial burden and suggested the anticipated cost could be considered when waterfront property is sold or leased. Bohn said she was concerned with moving an interchange more to the north because of three parks located off Portway (Event Site, Lot 6, and the Hook). Duckwall suggested that the costs should be borne on a proportional basis by those who are creating the issue; i.e. the Hood River Juice Company, Hood River Distillers. McElwee wrapped up the discussion by stating that Tax Increment Financing or the creation of an Urban Renewal District or Local Improvement District would be important.

7. ACTION ITEMS: None.

8. COMMISSION CALL: Bohn reported she would be out of town in early September attending a Renaissance Faire. Streich commented that he had recently returned from Bend and was impressed with the high-end development in the Old Mill District. Hosford announced the addition of a new family member, Beau, a dog he had adopted from the County animal shelter. Duckwall commented that he was busy with harvest.

9. EXECUTIVE SESSION: At 6:25 p.m. President Duckwall called the Commission into Executive Session under ORS 192.660(2)(e) Real Property. The Commission was called back into Regular Session at 6:40 p.m.; no action was taken as a result of Executive Session.

10. ADJOURN: President Duckwall adjourned the meeting at 6:40 p.m.