Memorandum 15-120 Strategic Doing Update

Memorandum 15-120

Strategic Doing Update

TO:                       Mayor Wythe and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                  July 27, 2015

SUBJECT:         Strategic Doing Update

The purpose of this memo is to update the Council on Strategic Doing priorities since the May 11 Strategic Doing work session.

               Support staging areas for large development projects:

R&M Consultants, Inc., who have been hired to perform the Deep Water Dock feasibility study are working on a report for the City that inventories both City and private space that could be potentially used as lay down in the event of a large development project (such as AKLNG).

Public Works Director Meyer has been working on a brochure detailing the strengths and assets of the City of Homer for potential projects. This informational piece can be used to hand to project managers to give them a flavor for Homer. A draft of the text is attached. R&M Consultants will be turning this material into a flashy handout with pictures.

Along similar lines, the Planning Commission has been asked to look at expanding General Commercial 1 (GC1) zoning. Ocean Drive is an example of GC1 zoning where business is the primary focus.  Minimum lot size is 10,000 sf. See Memorandum 15-121 from City Planner Abboud summarizing the conversation at the Planning Commission.

Improve Energy Efficiency in City Facilities

Councilmember Burgess asked that staff look into alternative energy that can be installed on City facilities to supplement grid energy usage with a return on investment of 5 years or less. I met with Tom Taffe and Kamran Vasseghi recently to discuss alternative energy (streetlights, wind turbines, solar panels, fuel cell technology). Mr. Taffe and Mr. Vasseghi represent one of the many companies that sell alternative energy products. At this point, Public Works has provided them with the spreadsheet of energy usage on City facilities. This is pretty much the data in its raw form, to provide companies with complete information that can be used to make an accurate assessment of city facilities is fairly time consuming. My approach is to see if the analysis from Mr. Taffe and Mr. Vasseghi returns anything promising (return on investment of 5 years or less). If so, I would bring a request for proposal to Council to proceed with an RFP to cast a wide net for potential improvements. I am hesitant to lead with a RFP at this time of year because it would involve collecting information and specs by Public Works during a very busy time of year.

The City has a revolving loan fund for energy efficiency improvements the energy improvements could be billed to, current balance is $293,058. See attached spread sheet:  Revolving Energy Fund for detail.

Enact a Sewer Inflow Reduction Program

Inflow and Infiltration (I&I) refers to situations where people are dumping more water into the sewer system than what comes out of household use. This could be sump pumps that pump ground water into the sewer or gutters that direct water into the city sewer system. In the end it represents additional strain on the sewer treatment system processing water that does not need to be processed.  Public Works Director Meyer recommends four steps to improving I&I. 

1) Revise code to be able to enforce I&I violations. (Public Works will look into what other municipalities are doing this fall and bring the Council recommendations. The City will need to look carefully at enforcement options and keep our limited enforcement capability in mind)

2) Initiate an education campaign focusing on new development

3) Enforcement: Make an example out of someone

4) Ongoing inspection as homes are connected to water and sewer

Expand the Deep Water Dock

R&M Consultants has been busy working on the feasibility study for the DWD expansion.  They will be giving you a preliminary report at the Council meeting. Early indications are that, barring short term projects, there may not be enough demand for Deep Water Dock expansion to justify the significant expense. Shipping companies interviewed maintain they have an established distribution system and would be reluctant to change that. Of course there is much more work to be done before we can come to a no-build conclusion. However, the City received $1,000,000 in 2010 from the Legislature to contribute towards this project. These funds have significantly less strings attached than the $1.7 million of Federal funds that are currently being spent on the project. The original plan was that the City would use the $1 million for design, environmental work, and leveraging other funds (ineligible expenses for the federal dollars). However, the City has already had to ask for an extension from the State to spend these funds (the grant lapsed this year). We were able to make a very good argument for the extension given the heartache a MOU has been. Nevertheless, with the current funding climate in Juneau I think it is dangerous to ask for a second extension. I also think it is unwise to ask for a re-appropriation. The Harbor wants to find an effective way to use these funds to serve existing customers and bring new business in. My recommendation is to work of finding such a project that meets the scope of the original agreement and produces some tangible benefits for users of the Deep Water Dock. During the course of the interviews with stakeholders, we have been getting feedback that a secure, fenced in staging area uplands (chip pad) would be very useful. However, uplands improvements may be quite a stretch for the grant. I would like to take a couple of suggestions to the State and feel out what our options are.

Enc:

Text for Homer Harbor/Homer Spit Marine Support Infrastructure Brochure

Memorandum 15-121 General Commercial 1 Land Availability

Spread Sheet on Revolving Energy Fund

Any supporting documentation from R&M