Office of the City Clerk 491 E. Pioneer Avenue
Homer, Alaska 99603
Jo Johnson, CMC, City Clerk (907) 235-8121
Melissa Jacobsen, CMC, Deputy City Clerk II ext: 2224, 2226, or 2227
Renee Krause, CMC, Deputy City Clerk I Fax: (907) 235-3143
TO: Mayor Hornaday and Homer City Council
FROM: Melissa Jacobsen, CMC, Deputy City Clerk
DATE: May 8, 2012
SUBJECT: Port and Harbor Advisory Commission Recommendation Regarding the Port and Harbor Improvement Committee Harbor Improvement Bond Project List
The Port and Harbor Advisory Commission took the following action at their April 25, 2012 regular meeting:
ZIMMERMAN/WEDIN MOVED TO RECOMMEND TO COUNCIL TO HAVE THE HARBOR IMPROVEMENT COMMITTEE CHANGE THE CAPITAL IMPROVEMENT BOND INCLUDE ONLY SYSTEM 5 UPGRADE, RAMP 3 GANGWAY, AND PORTIONS OF THE FLOAT REPLACEMENT TO A MAXIMUM BOND OF $4 MILLION.
There was discussion that the necessary work on the floats could be done now, fixing pilings and replacing A float to replace ramp 3, and the rest of the float work out spread to be done as reserve funding allows. It is a good compromise. Concern was expressed that relying on reserve funds to grow and be able to spend as you go could take about 5 years based on the proposed tariff increases. By that time inflation will have increased the cost but if we can bond and set the cost in today’s dollars and pay with future income is the more economical way to get the work done. 5 years from now there will be more problems that need to be addressed. Bonding rates are really low right. It looks good on paper to put it off and maybe we can get by without someone getting hurt or a float failing, but taking care of these things presently will help us see our way clear.
Other comments included recommending the harbor office be address separately through a general obligation bond that would be paid back by the city as a whole since there is a significant amount of sales tax generated by the harbor that goes in to the general fund.
VOTE: YES: STOCKBURGER, ULMER, WEDIN, ZIMMERMAN
NO: CARROLL, HARTLEY, HOWARD