Minutes of January 23, 2007 Regular Meeting
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

Absent: None

Media: Sue Ryan, Hood River News

1. CALL TO ORDER: President Bohn called the regular session to order at 5:35 p.m.
a) Modifications, Additions to Agenda by Staff: A Personal Services Agreement with Terra Surveying for a Tax Lot 100 boundary survey, and a Notice of Intent to Award the Marina Center Building remodel to JWC Construction, LLC were added to the agenda as Action Items.
b) Information, Communications, Announcements: None.

2. PUBLIC COMMENT: Dr. Pat Evenson-Brady, Hood River County School District Superintendent, asked for the Commission's support of a bill being introduced to the legislature by State Senator Rick Metsger and State Representative Patti Smith that would allow an exception to current laws by permitting Hood River County to construct schools on high value exclusive farm use (EFU) land outside the urban growth boundary (UGB) but within three miles of the UGB, and the extension of city services to the schools outside the UGB. Evenson-Brady stated that the last build-out occurred in 1990 and that an additional 53 classrooms would be required district wide to accommodate a projected 31% increase in student enrollment by the year 2015. The school district has an option to purchase property that is contiguous to the Hood River Valley High School property and passage of the bill would allow construction on the land. Evenson-Brady answered questions from the Commissioners, after which staff was directed to draft a letter in support for President Bohn's signature.

3. COMMISSIONER, COMMITTEE REPORTS:
a) Industrial Lands Committee: Commissioner Duckwall reported the committee would meet later in the week and he was hopeful a final report would be presented in February.

4. DIRECTOR'S REPORT: Executive Director Michael McElwee updated the Commission on the Port, City, and County coalition 2008 funding priorities that will be lobbied in Washington, D.C. in early March. The delta remains a priority, however, the delegation is not ready to pursue sustainable strategies for the waterfront and Ball Janik has recommended the Cascade Locks health facility as an alternative. McElwee noted staff is in the process of identifying a meeting date for the Waterfront Recreation Committee and an evening meeting will be planned in order to solicit comment from the public regarding the 2007 recreation season and long-term assessment of the delta. Dates are yet to be determined for a series of three evening meetings to engage public opinion on the Port's waterfront development strategy. Public objectives, Group Mackenzie's concept plan, and land use actions necessary for the waterfront is the goal of this outreach. McElwee reported that four Letters of Interest (DaKine Hawaii, Hood Technology Corporation, and two confidential inquiries) had been received regarding the adaptive re-use of the Expo Center Building. McElwee noted discussion would continue in Executive Session. McElwee commented that unless there was Commission objection, staff was recommending the use of a Consent Agenda for routine and non-controversial action items and that the procedures for the Consent Agenda would be codified in the Governance policies currently under staff review. There was Commission consensus for use of the Consent Agenda.

5. REPORTS AND PRESENTATIONS: Scott Reynier, Columbia River Insurance addressed questions from the Commission regarding the bridge insurance renewal policy and terrorism risk. Reynier commented there are not many bridge insurers and a switch could be made, but the Port has a long history, with no claims, doing business with Ace Westchester Specialty Group through Durham & Bates in Portland. Reynier suggested the Commission may want to consider, at a later date, the replacement versus current value of the bridge and that staff could contact HNTB for advice. Reynier also offered his personal opinion that other structures in the region, such as the dams, were more at risk of terrorism activity than the Hood River-White Salmon Interstate Bridge.
Linda Hull, Operations Manager, reported that eight applications had been received for the five public positions on the Airport Advisory Committee. Hull noted the single application for the Community Relations Committee was being recommended for approval as a Consent Agenda item. Relative to the Airport Advisory appointments, Hull stated the Commission could appoint the members upon review of the applications, interview and then appoint the applicants, or amend the Governance policy relative to the number of public persons appointed to the committee. There was Commission consensus to keep the public appointment to five members with a diversity of plane owners and non-owners and a mix of old and new committee members. Staff was directed to interview the applicants, with the assistance of Commissioners Duckwall and Streich, if available, and bring a recommendation back to the Commission for action at the first meeting in February.
Hull reported there are two positions on the Budget Committee to fill that expire March 1, 2007. Advertisement for the vacancies will be noticed in the Hood River News Legal Notices, the Port's newsletter and website.
Linda Shames, Finance Manager, commented on the results of the January 19 bid opening for the Marina Center Building remodel. The apparent low bid submitted by JWC Construction, LLC (JWC) came in under the engineer's estimate. Shames said that staff and architect Kevin Cooley were considering pulling Alternate 1 (exterior painting) and that separate quotes from local painters would be obtained at a later date. McElwee commented that JWC is a Vancouver, Washington company but many of the subcontractors will be local.

6. CONSENT AGENDA: The Consent Agenda items were read, by title only, by President Bohn:
· Approval of December 19, 2006 meeting minutes
· Appoint Kayleen Warner-Arens to the Community Relations Committee
· Ratify the execution of the Locus Interactive lease.

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

7. ACTION ITEMS:
a) Authorize Executive Director to Execute Amendment to HNTB Contract for Toll System Installation Oversight in an Amount Not to Exceed $148,007: There was no discussion regarding information provided by Shames relative to the Professional Services Agreement for HNTB's overseeing the selection, licensing, installation and quality testing of both the hardware and software for the toll collection portion of the automated tolling system.

Motion: Move to authorize the Executive Director to execute an amendment to the HNTB contract for toll system oversight in an amount not to exceed $148,007.
Move: Duckwall
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED
b) Authorize Executive Director to Execute Environmental Services Agreement and Contingent Fee Agreement with Sesco, Inc. Associated with Ken Jernstedt Airfield: McElwee discussed that the agreement with Sesco may provide potential financial benefits and complete environmental cleanup at the airport leading to a "No Further Action Letter" from the Department of Environmental Quality. Since acquiring the airport in 1978 from Hood River County, the Port has remediated environmental containment related to its historic use. Under the agreement, Sesco would negotiate with prior insurance providers for potential settlement agreements. The Port would obtain 80% of the insurance proceeds and Sesco would get 20%. McElwee noted the agreement with Sesco could be terminated at any time and the Port would be obligated for Sesco's reasonable out-of-pocket expenses.
Motion: Move to authorize the Executive Director to execute an environmental services agreement, and a contingent fee agreement, with Sesco, Inc. associated with the Ken Jernstedt Airfield.
Move: Watson
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

c) Authorize Executive Director to Execute Lease of the Homeshield Building to the Boeing Company and Ratify the Execution of the Indemnity Agreement: McElwee complimented Marketing Manager Mike Doke for his work with the Boeing Company the past two weeks regarding the six-month lease, with a six-month option, of 10,976 square feet of the eastern end of the building and 754 square feet of second-level office space. Doke commented Boeing's operations support Insitu's contracts and that interest in the remaining space has been expressed. Doke also reported that Maritime Services, which occupies 6,900 square feet, along with Boeing, would be interested in negotiating longer lease terms, if available.

Motion: Move to authorize the Executive Director to execute a lease, and to ratify the execution of the Indemnity Agreement, with the Boeing Company for space at the Homeshield Building.
Move: Duckwall
Second: Hosford
Discussion: Commissioner Duckwall asked the building at 910 Portway Avenue be renamed from the Homeshield Building or the Western Power Products Building.
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

d) Accounts Payable: There was agreement among the Commissioners that the bridge insurance renewal policy would not include terrorism risk coverage.

Motion: Move to approve Accounts Payable in the total amount of $259,537.44: to Coburn Electric for bridge street lights and poles in the amount of $10,781.44; to SDAO for renewal of property and general liability insurance in the amount of $51,791; to Flowing Solutions for marina basin planning and delta analysis in the amount of $18,000; and to Columbia River Insurance for the bridge renewal policy in the amount of $178,965, which does not include terrorism risk coverage.
Move: Hosford
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

e) Agenda Addition: Terra Surveying Personal Services Agreement: McElwee recommended the approval of a Personal Services Agreement with Terra Surveying which would provide the base ownership and legal description of Tax Lot 100.

Motion: Move to authorize the Executive Director to execute a Personal Services Agreement with Terra Surveying in an amount not to exceed $8,800 to provide a boundary survey of Tax Lot 100.
Move: Streich
Second: Duckwall
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

f) Agenda Addition: Notice of Intent to Award: There was a staff recommendation to omit Alternate 1 for exterior painting and obtain separate quotes from local painters at a later date.

Motion: Move to authorize the Executive Director to execute a Notice of Intent to Award, and if no objections are received, authorize the Executive Director to enter into a contract with JWC Construction, LLC for remodel of the Marina Center Building for the base amount of $335,820 and include only Alternate 2, for solar photovoltaic in the amount of $21,980; and Alternate 3, for solar water heating in the amount of $8,500.
Move: Duckwall
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

8. COMMISSION CALL: Continued to adjournment.

9. EXECUTIVE SESSION: President Bohn called the Commission into Executive Session under ORS 192.660(2)(e) Real Property and ORS 192.660(2)(f) Exempt Public Records at 6:53 p.m. At 7:45 p.m. Commissioner Duckwall indicated a potential conflict of interest and requested to be excused from Executive Session. Upon conclusion of Executive Session, the Commission was called back into regular session at 8:38 p.m. No action was taken as a result of Executive Session.

10. ADJOURN: Commissioners Hosford and Streich reported they would be unavailable for the February 6 meeting.

President Bohn adjourned the meeting at 8:40 p.m.