Port of Hood River Commission
Meeting Minutes of Jan. 12, 2010 Regular Session
Marina Center Boardroom
5 P.M.

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

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

Absent: Commissioner Kathy Watson
Media: None

1. CALL TO ORDER: President Hoby Streich called the meeting to order at 5:00 p.m.
a) Modifications, Additions to Agenda: Executive Director Michael McElwee announced the Commission would be meeting in Executive Session at the conclusion of Regular Session.

2. PUBLIC COMMENT: None.

3. CONSENT AGENDA:

· Approve Minutes of December 15, 2009 Regular Meeting and Minutes of December 29, 2009 Special Meeting
· Approve Property and General Liability Insurance Policy Renewals with Special Districts Association of Oregon in the Amount of $58,952 and Bridge Insurance Policy Renewals with Durham and Bates in the amount of $190,894
· Approve Change Order No. 8 in the Amount of $10,912.08 and Change Order No. 9 in the Amount of $860.18 for Waterfront Business Park and Anchor Way Project
· Approve Change Order No. 4 with Mega Pacific in the Amount of $953 for Electrical Service to the Dry Storage Building
· Ratify Additional Painting at Big 7 Building for Insitu Lease Space in the Amount of $2,200

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

4. Commissioner, Committee Reports:
· Hood River County Economic Development - Commissioner Bohn reported on the meeting that was held earlier in the day and touched on the following highlights: Enterprise Zones are required to recertify every ten years; Ports can now consent to zones by resolution or sponsorship; and the County is considering whether land, such as the Pine Grove area, can be added into the zone. Funds are still being sought to assist in updating the County's Economic Development Action Plan. Sponsors are still needed for the Pub Talks and Gorge Angel Conferences. The Needs & Issues Inventory will be updated with requests going through this committee. The Affordable Housing report was presented to City Council and the executive summary will be posted to the City's website. Bohn also mentioned there was an interest in the Henderson property on Country Club Road; however, the County said no to any development until Exit 62 interchange transportation issues are addressed.

5. DIRECTOR'S REPORT: The following areas were highlighted:
· Schedule - No report.
· Staff & Administration - The Port-City-County Coalition met with Hal Hiemstra, Ball Janik, via speaker phone to discussion appropriations requests for 2011/12. Potential projects include a pedestrian crossing at the hospital, Exit 62 road improvements, and renewable energy efforts with the County. A re-direction of remaining funds for the Frontage Road Feasibility Study was discussed. McElwee said funds would need to be used within the proximity of the project area and the Commission offered suggestions that McElwee will discuss further with Hiemstra. The Commission was provided with a mid-year update of the Executive Director's individual work plan for discussion.
· Waterfront Recreation -The 'C' dock expansion contract has been executed with Bellingham Marine Industries. The biological assessment for the Event Site grading project (re-sculpting) has been provided by the U.S. Army Corps of Engineers to NOAA Fisheries for comment. An opinion, however, may take up to six months. McElwee stated the project would be discussed during the Commission's spring planning session for a "go-no go" determination.
· Waterfront Development - No report. An update on the Halyard Building construction was deferred to Ken Andrews's guest presentation.
· Airport - The Airport Advisory Committee will be meeting on January 15, 2010.
· Bridge/Transportation - The span lock repairs have been completed. HNTB is reviewing the draft report of Burgess & Niple's annual bridge inspection. A presentation covering report findings is expected in February.

6. REPORTS, PRESENTATIONS AND DISCUSSION ITEMS:
· Halyard Building Construction Update, Ken Andrews, Milstead & Associates: A project update was provided by Andrews, who commented the schedule timeline is in line with original projections. Andrews stated this is an extremely clean job and the quality of work is very good. An early summer completion is anticipated. McElwee reported that staff is developing media marketing related to the Halyard Building's genesis and offered to provide a draft to the Commission for comment before it's published.
· Enterprise Zone Extension, Nick Kraemer, Hood River County: Fifty-nine Enterprise Zones are currently designated in Oregon and each zone terminates after 10 years, at which time the sponsor (Hood River County) applies for re-designation or new opportunities. Kramer explained that businesses participating in an Enterprise Zone's standard three-to-five year property tax exemption program are required to show an annual growth of 10% otherwise their eligibility status is lost and back taxes (with a penalty) are paid to the County. Although there is an acreage limit to an Enterprise Zone, Kramer said the addition of the Pine Grove area is being researched. Kramer also informed the Commission that Ports can now decide to sponsor or consent to an Enterprise Zone and the County will be looking to the Port for a decision in March or April. Kraemer addressed questions from the Commission and said that any questions he was not able to answer would be provided in a follow-up email.
· Nichols Basin Planning: McElwee reported that with the possibility of a 2010 Water Resources Development Act (WRDA) bill, there may be an opportunity to take a small step in moving forward to extinguish or modify an existing flowage easement for the Nichols Basin that was purchased by the U.S. Army Corps of Engineers (Corps). McElwee and Craig Crotteau of Ball Janik have discussed the project with the Portland office of the Corps who recommended that a conceptual plan be prepared to indicate what changes might occur to the Basin by evaluating flowage easement relationships, cut and fill quantities and beneficial or detrimental impacts to federal interests. The Commissioners questioned moving forward because of staff time commitment when other projects are underway, the project seeming to be more beneficial to Naito's development project, and the public's expectation of the Port. McElwee emphasized the WRDA bill was the driver and that a specialized consultant would be engaged to evaluate financial impacts, permitting and approval processes, prepare brief conceptual alternatives with input from key stakeholders and a broad community outreach for presentation to the Corps. Discussion resulted in consensus from the Commission to move forward, and McElwee said formal action would be brought to the Commission in February.

7. ACTION ITEMS:
a) Approve Lease with Heart of Hospice at Wasco Business Building Contingent Upon Approval of a City Conditional Use Permit: Negotiations for occupancy of 1,992 square feet on the building's second floor have been completed. Negotiated items included the Port covering the fee for a Conditional Use permit required by the City and waiver of one month's rent in January 2011. This is a two-year lease, with two one-year extension options. The Conditional Use Permit will go before the City for approval on January 19 and Marketing Manager Mike Doke reported that a City Planning Director staff memo recommended approval of the Permit.

Motion: Move to Approve Lease with Heart of Hospice at Wasco Business Building Contingent Upon Approval of a City Conditional Use Permit.
Move: Davies
Second: Duckwall
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

b) Approve Addendum to Lease with Renaissance Learning at Wasco Business Building Contingent Upon Execution of Heart of Hospice Lease: To accommodate the proposed Heart of Hospice lease, Renaissance Learning has agreed to remove 452 square feet from its lease, including a 252 square foot conference room and one-half of a 400 square foot break room.

Motion: Move to Approve Addendum to Lease with Renaissance Learning at Wasco Business Building Contingent Upon Execution of Heart of Hospice Lease.
Move: Davies
Second: Bohn
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

c) Approve Addendum No. 2 to Lease with Full Sail (B.C. Marketing Concepts, Inc.) at Expo Center Building: The current lease expires in February 2011; however, a longer term was requested for its administration and warehouse operations so the company can remain in the building until they are able to move to new space in the Columbia Building.

Motion: Move to Addendum No. 2 to Lease with Full Sail (B.C. Marketing Concepts, Inc.) at Expo Center Building.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

d) Approve Memorandum of Understanding with Tom Cody for Development Services: A non-binding Memorandum of Understanding (MOU) laying the groundwork to engage Project^ Ecological Development's expertise and possible need for future assistance to the Port was presented. Tom Cody provided significant support to the Port in the preparation of the Insitu Campus Request for Information (RFI) and Cody's interest was in part to seek future opportunities. The MOU would allow the Port to move quickly to negotiate first with Cody if development services were needed. McElwee pointed out that any future agreement or contract would be brought to the Commission for approval.

Motion: Move to Approve Memorandum of Understanding with Tom Cody for Development Services.
Move: Davies
Second: Duckwall
Discussion: Streich voiced his concern about a public perception of favoritism being shown and the selection process not being transparent.
Vote: Aye: Bohn, Davies, and Duckwall
Nay: Streich
Absent: Watson
MOTION CARRIED

e) Approve Kiteboard Teaching Concessions for 2010-2012: The evaluation committee, comprised of Katie Crafts (CGWA), Steve Gates (water recreation business owner), Jon Davies (Waterfront Recreation committee), and Michael McElwee met on January 11 to discuss scoring of the eight responses submitted for the teaching concession Request for Proposals. Davies commented that RFPs were evaluated on the face value of the proposals and not individuals or personalities and committee members felt the decision was fair and unbiased. Although the RFP indicated the intent was to select a maximum of five schools, there was a unanimous recommendation from the Evaluation Committee that six schools be selected for the following reasons: aggregate scoring showed a clear break point between the top six schools and the remaining two; the operating plans of two schools indicate they will be teaching solely from watercraft west of Wells Island; four of the six are returning schools and have proven their ability to work cooperatively with the Port and each other, and all six work plans illustrate a safe teaching environment and address river-related changes. The Committee did recognize the addition of another school was a concern for greater congestion on the Sandbar, but the fact that two schools would not utilize the Delta for water-based instruction mitigated this concern. Commissioner Bohn asked about the Port's liability for schools transporting clients on watercraft. Davies admitted this was a liability and a caveat for recommending six schools was that staff ensure all permits, certifications and insurance are in place prior to contracts being executed and that staff would also be working closely with the schools regarding rules, spacing, and other issues that arise during the season.

Motion: Move to Approve Kiteboard Teaching Concessions for 2010-2012 with New Wind Kiteboarding, Kite the Gorge, Gorge Gradients, Gorge Kiteboarding School, Cascade Kiteboarding, and Hood River WaterPlay.
Move: Davies
Second: Duckwall
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

f) Approve Contract with simp.L LLC for Conceptual Planning Services at Western Power Building in an Amount Not to Exceed $9,800 Plus Reasonable Reimbursable Expenses: Discussion at the December 15, 2009 meeting focused on the need to define site boundaries, evaluate possible building expansion and examine a better termination at the west end of Portway Avenue. Potential landscape improvements to make the site more consistent with a business park environment were also discussed at the December meeting. As a result, a revised phased proposal from landscape architect simp.L LLC was requested.
The first phase would look at re-configuration of the west end of Portway Avenue, relocation of the building's western fence line, a building expansion, and a general list of possible landscape improvements. The second phase would prepare landscape plans for the entire property. McElwee noted the second phase would be initiated upon Commission approval.

Motion: Move to Approve Contract with simp.L LLC for Phase 1 Conceptual Planning Services at Western Power Building in an Amount Not to Exceed $9,800 Plus Reasonable Reimbursable Expenses.
Move: Bohn
Second: Duckwall
Discussion: Commissioner Davies emphasized the need to seek stakeholder input, such as Riverfront Trail and windsurfing user groups.
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

8. COMMISSION CALL: As the proud owner of a new puppy, Bohn mentioned that she is using the Riverfront Trail more frequently; however, she had noticed vehicle tracks along the trail from some New Year's Eve vandalism and suggested that staff look at adding bollards or boulders. Davies said he would be attending a Chamber meeting the following day and asked for advice on how he should respond if asked about the Port's support of the Chamber-and the answer was, "we support the Chamber." Streich recommended a Commission field trip to Port properties and visit with tenants. Attorney Jaques confirmed that public meeting laws do not apply to site visits.

9. EXECUTIVE SESSION: The Commission was called into Executive Session at 6:45 p.m. under ORS 192.660(2)(e) Real Estate. The Commission was called back into Regular Session at 7:00 p.m. The following action was taken as a result of Executive Session.

Motion: Move to Authorize Executive Director to Execute Real Estate Sale Contract Related to Potential Acquisition of the Jensen Building, and Authorize Due Diligence and Appraisal Expenditures and Deposit Earnest Money with Escrow Agent.
Move: Bohn
Second: Duckwall
Vote: Aye: Bohn, Davies, Duckwall, and Streich
Absent: Watson
MOTION CARRIED

10. ADJOURN: President Streich adjourned the meeting at 7:00 p.m.

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Airport Advisory Committee
Meeting Minutes of January 15, 2010 Meeting
Airport FBO Building
10 A.M.

PRESENT: Committee members Bill Veatch, Dayle Harris, Gennaro Avolio, Ed Drew, Richard Clarke and John Benton, FBOs Scott Gifford and Johnny Young, Port Executive Director Michael McElwee and Port Marketing Manager Mike Doke. Guests: Joe Roshak, Century West Engineering; Bud Pepitone, Orchard Road resident.

INTRODUCTIONS
Vice-Chair Bill Veatch called the meeting to order at 10 a.m.

FIVE-YEAR CAPITAL PLAN
Joe Roshak of Century West Engineering presented a five-year capital plan that focuses on shifting the airport's runway to the east and vacating Orchard Road. The plan was requested by Federal Aviation Administration and is due by February 1, 2010.
The $2,146,745 plan covers federal fiscal years 2010-2015; the Port's financial commitment is 5 percent of the total, or $112,987. The plan utilizes annual $150,000 Airport Improvement Program funds, or non-primary entitlement funds, plus $1,099,641 in either state apportioned or discretionary funds.
Roshak emphasized that while the additional funding (state apportioned or discretionary funds) is not guaranteed, FAA has already approved funds to complete an environmental analysis required for the future runway shift. That work will be finished this spring or summer and it will have a limited shelf life. FAA may offer the additional funding to keep the project on track, he explained, emphasizing the runway shift is a safety project since it will move the Runway Protection Zone off Tucker Road/Highway 281 and fully onto airport property.
Michael McElwee asked if there was a difference in state apportioned and discretionary funds, and Roshak replied there was not a significant distinction - FAA could use either fund for the Hood River project. He said the main issue is local airport sponsor's ability to match the federal funds.
Scott Gifford asked if the western end of the runway would be removed when the landing strip shifts to the east, or if the existing asphalt could be retained for a displaced threshold in the event of airplane overruns. Roshak explained that the master plan's Airport Layout Plan shows the pavement being removed.
Roshak outlined annual funding requests in the five-year capital plan, which totals $2.1 million. They include: $330,565 for initial runway construction and relocation in Federal Fiscal Year 2010, which begins Oct. 1, 2010; $265,268 for continued runway work in FY 2011; $1,310,148 for final runway work in FY 2012; $157,895 for planning and environmental work to expand the northern apron in FY 2013; $157,895 for initial apron expansion construction in FY 2014; and $157,895 for final apron expansion construction in FY 2014. These funds are matching grants, with the Port covering 5 percent of the total investment, or $112,987. Under this scenario, physical Orchard Road vacation and installation of cul-de-sacs could occur in FY 2011, with final runway construction in FY 2012.
Committee members suggested Precision Approach Path Indicators (PAPIs), Runway End Identifier Lights (REILs) and fencing be explored for possible inclusion into the five-year capital plan. Roshak said he'd modify the plan to reflect those ideas. (NOTE: The final five-year capital plan submitted to FAA includes a request for an additional $494,000 in state apportioned or discretionary funds in FY 2012 to cover these extra items, and the local match means the total increase will be $520,000; the total funding package is $2.8 million, with a $137,687 local match.)
The committee agreed the five-year capital plan is appropriate for the airport.

RUNWAY SHIFT/ORCHARD ROAD VACATION UPDATE
Doke noted the Port Commission approved a contract with Century West Engineering to complete an environmental analysis and conceptual designs for the runway shift/Orchard Road vacation project.
That should be done in spring or summer, and once it is completed the Port will seek formal road vacation through Hood River County.

THROUGH-THE-FENCE AGREEMENT UPDATE
McElwee said that FAA has approved the Port's through-the-fence corrective action plan, and FAA rules require that only commercial operations be allowed to access the airport from private property. The FAA is against any residential airport access. As part of the corrective action plan, the Port plans to update its Ordinance 22 - which regulates activities on Port-owned properties - to include airport-specific issues. He noted the Port would need to designate an official to enforce the ordinance.
Among issues that may be addressed in the updated ordinance are: no authorized access, no non-aviation motor vehicle operation without expressed Port authorization, no unauthorized pedestrian activities, no domestic animals, no entry onto airport except from designated areas, no hunting, and parking in designated areas only.
Committee members suggested having a clear definition of commercial operations. John Benton suggested allowing some designated wildlife control to reduce bird populations.

GRASS RUNWAY UPDATE
Doke reported base material and topsoil have been installed at the grass runway that is adjacent to Runway 25. Grass will be planted when the weather approves, and the Port plans to have the strip open by June 1, 2010.
Gennaro "Bill" Avolio gave a strong objection to grass runway construction work that occurred next to an active runway. FAA requires a full runway closure when construction occurs adjacent to the landing strip, and Avolio was frustrated that did not occur. Committee members noted Avolio expressed that concern at previous meetings, and Doke noted that the comments were included in meeting minutes, which are posted on the Port's web site.

2009 MAINTENANCE UPDATE/WINTER MAINTENANCE ITEMS
Doke reviewed maintenance projects completed in 2009. These included improving the tiedowns, enhancing a drainage ditch near the A and B T-hangars on the airport's north side, adding lighting on the northern tiedown ramp and repairing T-hangar lights.
Pilots noted that some of the tiedown chains have rusted. Doke said he'd discuss this with the Port's maintenance department. Doke asked about the condition of the runway lights, which have been an ongoing problem. Scott Gifford reported Coburn Electric had the lights operating, and the system will be monitored.

UNSCHEDULED ITEMS
Dayle Harris said he was continuing to work with Gifford to develop noise abatement information lessen the impact of aviation operations in the airport neighborhood. The project is ongoing.

ADJOURN
Veatch adjourned the meeting at 11:55 a.m. No date was set for the next committee meeting.

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