Port of Hood River Commission
Meeting Minutes of December 2, 2008 Regular Session
Marina Center Boardroom
5:30 PM

THESE MINUTES ARE NOT OFFICIAL until approved by the Port Commission at the next regular meeting.

Present: Commissioners Don Hosford, Hoby Streich, and Kathy Watson; Attorney Jerry Jaques; from staff, Michael McElwee, Linda Shames, Mike Doke, and Laurie Borton

Absent: Commissioners Sherry Bohn and Fred Duckwall; from staff, Linda Hull

Media: None

1. CALL TO ORDER: Vice President Hoby Streich 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 Meeting Minutes of November 18, 2008 Regular Session
· Approve Lease Renewal with Northwest GraphicWorks for Big 7 Building
· Approve Amendment to Scope of Work with Columbia Planning and Design, LLC for Airport Master Plan

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

4. Commissioner, Committee Reports: None.

5. DIRECTOR'S REPORT: McElwee highlighted the following areas:
§ Staff & Administration - Special Districts Association of Oregon will be holding a Human Resources training session in Roseburg on December 9-10 that McElwee will attend. McElwee will attend an Oregon Public Ports Association meeting in Salem on December 12. The Port office will be open the days immediately following the Christmas and New Years Day holiday although staff may be limited. A revised staffing plan will be brought to the December 16 Commission meeting.
§ Waterfront Recreation - A proposal for ramp improvements at the Hook will be brought to the Commission for action at the December 16 meeting.
§ Waterfront Development - McElwee and Attorney Jerry Jaques will meet with City Manager Bob Francis and City Attorney Alexandra Sosnkowski tomorrow for further discussions on the Intergovernmental Agreement that has been drafted by the City Attorney related to a Waterfront infrastructure funding agreement.
§ Bridge/Transportation - McElwee will attend a Washington Regional Transportation Commission meeting in Goldendale on December 8. The Hood River-White Salmon Bridge is an agenda item and staff will attend this meeting.

6. REPORTS, PRESENTATIONS AND DISCUSSION ITEMS:
§ Draft Waterfront Infrastructure Intergovernmental Funding Agreement - McElwee stated the Intergovernmental Agreement (IGA), which was drafted by City Attorney Alexandra Sosnkowski and which is still being reviewed for comments, sets the framework for the 'first generation' of Waterfront infrastructure projects, priorities and funding agreements between the Port, the City, and the Urban Renewal Agency (URA/Agency). Since the URA currently has no source of funds to facilitate to projects, funding will be contributed by the Port and City. McElwee stated loan agreements would be initiated for each specific project but that the interest rates are indeterminate at this time. Commissioner Kathy Watson inquired why the project priority list was not included with the IGA. McElwee responded that he and Attorney Jerry Jaques would meet with Francis and Sosnkowski the next day to continue discussions on the draft IGA and McElwee agreed that the project priority list should be included as an attachment. McElwee also commented that the Urban Renewal Agency has not seen a copy of the draft IGA and the Agency would not meet in December, unless a special meeting is convened. McElwee stated that he would meet with Commissioners Don Hosford and Streich, who sit on the URA board, to update them on the draft IGA following further discussions with the City.

7. ACTION ITEMS:
a) Authorize Contracts with Stu Cato, P.E. for Civil Engineering Services Not to Exceed $34,500 Plus Reasonable Reimbursable Expenses and Terra Surveying for Survey Services Not to Exceed $4,000 Associated with Improvements to Riverside Drive: McElwee commented the Action Item was a result of discussions from the November 18 meeting in which a phased approach to Riverside Drive improvements was suggested. Preliminary engineering work may advance the Port's request for funding if a federal or state stimulus package is approved early in 2009. McElwee also commented that it would be important to lay some groundwork with the Oregon Department of Transportation (ODOT), who would distribute the funding, since the Port's project will likely be competing with City and County projects. Commissioner Watson suggested the "win-win" approach to take with ODOT would be an explanation that the short-term Riverside Drive improvement project would lead to long-term jobs.

Motion: Move to Authorize Contracts with Stu Cato, P.E. for Civil Engineering Services Not to Exceed $34,500 Plus Reasonable Reimbursable Expenses and Terra Surveying for Survey Services Not to Exceed $4,000 Associated with Improvements to Riverside Drive.
Move: Hosford
Second: Watson
Vote: Aye: Hosford, Streich, and Watson
Absent: Bohn and Duckwall
MOTION CARRIED

8. COMMISSION CALL: Hosford inquired if the Port had participated in the Chamber of Commerce's parking survey. McElwee responded the Port had not yet responded to the survey but that he intended to do so. Watson commented that since the federal government had officially recognized the county was in a recession, she inquired if the Port may want to consider some scenario planning regarding budget pull-backs of a 15 to 20% contraction. Streich inquired if staff had received any updates from the County on the Windmaster sewer district project. Marketing Manager Mike Doke responded the County's targeted completion date of October has been revised to winter or early spring of 2009 and that nothing in particular had delayed the project, it just didn't get done.

9. EXECUTIVE SESSION: None.

10. ADJOURN: Vice President Streich adjourned the meeting at 5:58 p.m.

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Port of Hood River Commission
Meeting Minutes of December 16, 2008 Regular Session
Marina Center Boardroom
5:30 P.M.

THESE MINUTES ARE NOT OFFICIAL until approved by the Port Commission at the next regular meeting.

Present: Commissioners Sherry Bohn, Fred Duckwall, Don Hosford, Hoby Streich, and Kathy Watson; Attorney Gil Sharp; from staff, Michael McElwee, Mike Doke, and Laurie Borton

Absent: Attorney Jerry Jaques; from staff, Linda Hull and Linda Shames

Media: None

1. CALL TO ORDER: President Fred Duckwall called the regular session to order at 5:30 p.m.
a) Modifications, Additions to Agenda: An accounts payable item was added to the Consent Agenda.

2. PUBLIC COMMENT: Josh Sceva, Hood River Yacht Club board member, deferred his comments to the Agenda discussion regarding Moorage Lease Rates.

3. CONSENT AGENDA: The Consent Agenda was modified to add an accounts payable item.

· Approve Meeting Minutes of November 18, 2008 Regular Session
· Approve Lease Amendment with RBS Battens for UTS Portsite Building
· Approve Accounts Payable to Pageworks Design, Inc. in the amount of $8,141

Motion: Move to approve Consent Agenda, as modified to include the Accounts Payable item.
Move: Watson
Second: Hosford
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

4. Commissioner, Committee Reports: None.

5. DIRECTOR'S REPORT: McElwee highlighted the following areas:
§ Staff & Administration - The maintenance crew was acknowledged for their long days during the winter weather storms ensuring safe passage on the bridge approaches, airport runways, and tenant parking lots and sidewalks. The Commission was informed that Finance Manager Linda Shames was out on medical leave and is expected to return after the New Year's holiday. Staffing needs are still being reviewed and a proposal will be brought to the Commission in January for discussion. McElwee reported that he is working with an attorney from Special Districts who is reviewing the Port's governance policy and he expects an update will be available in January or February.
§ Waterfront Recreation - The Hook planning committee has identified ramp improvements as a priority project. The Columbia Gorge Windsurfing Association board has authorized an expenditure of $2,500 and McElwee noted a Port contribution of $5,000 would be needed to complete the project. McElwee asked the Commission for their input and stated there would be opportunity for further discussion when the request is brought back to the Commission for approval. It was noted the project would be a permanent improvement to Port property for a number of years but that maintenance and upkeep may be required later. McElwee also noted that ramp improvements would not be affected by Goal 5 riparian regulations. Commissioner Sherry Bohn commented that a careful decision should be made with regard to precedent setting; and Commissioner Don Hosford added there could be a liability issue if the Port doesn't provide safe access to the water. McElwee then reported an initial meeting with Spit stakeholders was scheduled for Thursday to begin brainstorming ideas the improvements to the Kiteboarding site.
§ Waterfront Development - Cost estimates for a new waterfront flex building have been received and McElwee noted it would be a challenge for existing tenants to meet the rate of return expectations when they are used to paying 50 cents per square foot. Discussions are still underway with the City and Urban Renewal Agency over funding agreements for infrastructure projects, and the Intergovernmental Agreement for overall financing, which has been drafted by the City, will likely be brought back to the Commission in January.
§ Airport - McElwee noted that he would meet next week with Commissioner Hoby Streich to discuss the glider concession, which expires on December 31.
§ Bridge/Transportation - Tolls will be waived from 8:00 p.m. on Wednesday, December 24 through 4:00 a.m. on Friday, December 26. W&H has been asked to prepare a contract amendment to the Frontage Road Feasibility Study for Commission consideration that would include an evaluation of a Split Diamond at Exit 63.

6. REPORTS, PRESENTATIONS AND DISCUSSION ITEMS:
§ Budget Committee - A vacancy on the Budget Committee has occurred with the
resignation of Brad Dezurik who has moved out of the country. Dezurik's term expires on March 1, 2009. There was Commission consensus to advertise the vacancy. McElwee also asked the Commission for suggestions on whom staff could contact about the vacancy.
§ Moorage Lease Rates - Because of the delay and uncertainty in the permitting process for a C Dock South expansion and because any work done in the water is limited to the months of November through March, staff has recommended that 2009 moorage lease rates be adjusted to a 3.7% Consumer Price Index (CPI) inflation rate. Once a permit is issued and hard costs for the expansion are known, the moorage tenants will be informed of the lease rates that should be anticipated in 2010, which will be above CPI and require Commission approval. There was Commission consensus that this approach for 2009 lease rates made sense.
Josh Sceva, Hood River Yacht Club (HRYC) board member and chair of the Port Liaison Committee, informed the Commission that the HRYC board was in favor of whatever it takes to complete an expansion project. Sceva also brought to the Commission's attention a motion that was passed by the HRYC board requesting that their organization be included in discussions of future moorage lease rates and rates that would consider boat lengths in the equation. McElwee told Sceva that a calendar note would be made for fall 2009.

7. ACTION ITEMS:
a) Authorize Execution of Resolution No. 2008-09-1 Acknowledging the Retirement of Operations Manager Linda Hull and Offering Thanks and Congratulations: McElwee commented that Hull would not want a Resolution acknowledging her retirement, and the Commissioners all agreed, but Duckwall said that is all the more reason why it should be done!

Motion: Move to Authorize Execution of Resolution No. 2008-09-1 Acknowledging the Retirement of Operations Manager Linda Hull and Offering Thanks and Congratulations.
Move: Bohn
Second: Watson
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

b) Authorize Execution of Fixed Base Operator Agreement with Scott Gifford dba Classic Wings Aero Services, Inc.: Mike Doke, Marketing Manager, explained the 5-year FBO agreement which was based on Flightline's agreement that expires on December 31. Doke noted that Gifford would be replacing the existing trailer at the airport at his cost and that a tenant of his choice would provide 24-hour security and take care of fuel sales if the system went down. The trailer would be owned by Gifford and Doke said it would be part of the FBO operation. Commissioner Streich asked if there was language addressing a ground lease, insurance requirements, or an "out clause" in case the tenant's activities reflect negatively against the Port's interests. Doke replied an amendment to the Agreement addressing public use of the FBO building was planned in January and the same could be done for the trailer.

Motion: Move to Authorize Execution of Fixed Base Operator Agreement with Scott Gifford dba Classic Wings Aero Services, Inc., with an Addendum to be Executed in January Relative to a Mobile Home Land Lease.
Move: Hosford
Second: Bohn
Vote: Aye: Bohn, Duckwall, Hosford, Streich, and Watson
MOTION CARRIED

8. COMMISSION CALL: Hosford complimented staff on the Fall/Winter 2008 Port newsletter that included the 2008 Annual Report saying it was well done and one of the Port's best publications. Commissioner Kathy Watson commented on a recent visit with folks at the Western Antique Aeroplane and Automobile Museum (WAAAM). Their newest building will have a catering kitchen with 15,000 s.f. set aside for events. Watson suggested information could be sent to WAAAM on organizations that had previously rented the Expo Center exhibit hall.

9. EXECUTIVE SESSION: At 6:05 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 6:38 p.m. No action was taken as a result of Executive Session.

10. ADJOURN: President Duckwall adjourned the meeting at 6:38 p.m.