Session 00-01, a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska and opened with the Pledge of Allegiance.
PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, MARQUARDT, YOURKOWSKI .
STAFF: CITY MANAGER DRATHMAN
CITY CLERK CALHOUN
POLICE OFFICER HUTT
PORT DIRECTOR/HARBORMASTER ABBOTT
PUBLIC WORKS DIRECTOR MEYER
ABSENT: COUNCILMEMBER: WELLES (excused)
AGENDA APPROVAL
(Addition of items to or removing items from the agenda will be by unanimous consent of the Council. HCC 1.24.040.)
The agenda was approved by consensus of the Council with the Mayor's request that Resolution 00-09 be pulled, under Consent Agenda, the addition of Resolution 00-13 as Consent Agenda Item M. and the written comments submitted by Dave Vanderbrink noted.
PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA
Dave Erickson, URS Dames and Moore, advised that he is present to answer any questions on Resolution 00-11.
Dave Vanderbrink informed Council that his written comments were somewhat superseded by the changes from the Harbormaster in response, in part, to his comments made at the previous meeting. Th City has excused itself from being a collection agency. He commented that after reading the changes four or five times it still appears that there are an awful lot of words that are not necessary. He suggested that the TUP fee be based on an hourly rate, which would alleviate the need to check up on the work being done.
Scott Francis, North Star Terminal and Stevedore Company, handed out a paper by North Star on reasons for their objections to the new TUP and some port comparison type information showing that Homer port/harbor has the highest fees. He stated that has one of the major TUP holders for the past eleven years North Star expected an invitation to participate in the formation of the new TUP. North Star objects to the 10% fee that is based on labor and equipment expenses, citing the following reasons:
non-invoiced labor
salaries
cargo handling allowances
only verification procedure listed in TUP is an expensive audit at the expense of the City
Since most of the dock users are not located in Homer, how would the City do an audit of those companies at any reasonable expense. The port comparisons that not only show that Homer has the highest wharfage and dockage fees, but is the only one charging a 10% fee. Mr. Francis pointed out that North Star gets a reimbursement from Seward and mostly 100% reimbursement from Anchorage. He told the Council that the City is pricing themselves right out of the market. Why would a carrier come to Homer? Homer dock is not the best facility. The City should be trying to get freight here not chase it away. His suggestions for increasing wharfage instead of the 10% fee are for the following reasons:
USCG manifest will list tonnage
shipping documents will list tonnages: delivery receipts, bills of lading, etc.
cranes have scales to measure weights
ship survey
The last page of the hand out was a "sample letter" from Brian Brown, referring to North Star stating there was a charge for Terminal Use and the City stating there was not. Mr. Francis pointed out that there is no City support for the terminal use permittee in collecting the fees. He concluded that the language is bad and North Star would like to participate in the development of new language, would like to attract freight to Homer and not chase it away.
Otto Kilcher urged the Council, who are probably more closely associated with his situation here in town, to take a moment and listen to Scott Francis, who has some good points. Mr. Kilcher stated that he is a middle man and has to try to answer to the rules applied to him, then answer to the customer. He emphasized that it is getting harder and harder to answer to the customer. Everyone tries to piggy back on the other's bill. He has to add on the City charges for dockage and launching and does not have the luxury of making $70,000 or $60,000 or $50,000 or $40,000 or probably not $30,000 a year. There are a bunch of people that those amounts are the norm and these are the people being paid to make up the tariff and charges based on a "norm" that is picked out of somewhere. He asked the Council to represent the people they are elected to represent. Products have to be sold and bought, the Council is being asked to think services, but the bills have to be paid. He stated that someone told him tonight that it costs more per ton to load logs across that dock than the home owners are getting for the logs. He generally has been in agreement with getting a higher wharfage rate. The price of fish, lumber and everything here in town keeps going down, but there is never a reduction at the harbor. The fees have to be reasonable. He suggested that there needs to be a change in that department. Mr. Kilcher recollected that the surcharge the City has, came from when City Hall was located where the Health Food store is and the City was sort of in the long shoring business. The City was getting cut out of it by the union and the new dock came up, but the City wanted to keep a hand in there and get a little bit off of this deal. There have been some good points brought up and it is really hard to try to quote a customer any rate to take some material some where with the add ons of fuel, tax, ramp, crane, wharfage on fish dock charge different than on the ramp and etcetera. Perhaps it should be included in the wharfage, it should be fair and this dock should not charge more than another dock and things like that. He concluded that it is a tough call. The City does want to attract business to Homer, does want the new dock and does have justification for it, but has to pay for the dock. How is the City going to pay for the new dock?
Tammy Jones stated that she received a copy of the proposed revisions and that most of her concerns and questions have been addressed in the revised TUP. It looks like the City has covered itself in the moorage, moorage of vessels, loading and unloading of cargo. This TUP started in 1989 and the revisions are to tidy up the loose ends and make the wording better. The 10% charge has always been there, this is not a new thing. The costs are not being changed. She stated that it is still not clear as to who will issue the TUP in the City and if those who are loading and unloading their own product would compensate the City for that. She stated that there are only 8 union members working on the dock, but many others are working on the dock for wages. She urged the Council to pass this TUP tonight and revise it later. The longer this is put off the more possible revenue of thousands of dollars will be lost to the City.
RECONSIDERATION
CONSENT AGENDA
(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)
A. Homer City Council regular meeting unapproved minutes of December 13, 1999. Recommend approval.
B. Resolution 00-01, Of the Homer City Council Establishing a Water and Sewer Standards Committee and Confirming the Mayoral Appointments. Recommend adoption.
C. Memorandum 00-01, from City Clerk, Re: Liquor License Transfer and Renewals. (Transfer from Alaska's Italian Bistro to Captain Patties Seafood House - Restaurant Eating Place & Designation Permit and Renewals for Bayside Lounge and El Pescador Grill - Beverage Dispensary.) Recommend approval and non objection
D. Resolution 00-02, Of the Homer City Council Confirming Dean Baugh as Treasurer for Calendar Year 2000. City Manager. Recommend adoption.
E. Resolution 00-03, Of the Homer City Council Confirming Jean Mack as Deputy Treasurer for Calendar Year 2000. City Manager. Recommend adoption.
F. Resolution 00-04, Of the City Council of Homer, Alaska Confirming the Appointment of Dean Baugh as the Acting City Manager for Calendar Year 2000. City Manager. Recommend adoption.
G. Resolution 00-05, Of the Homer City Council Amending the Procurement Policy and Procedures Manual, Subsection 4.3, Travel Expense Report and Travel Report Narrative. Regarding Travel. City Manager. Mayor. City Clerk. Recommend adoption.
H. Resolution 00-06 Of the Homer City Council Designating Signatories of City Accounts, Superseding any Previous Resolution so Designating. Finance. City Clerk. Recommend adoption.
I. Resolution 00-07, Of the Homer City Council Amending the Mileage Rate for Personal Automobile Use from Thirty one cents to Thirty two and one half cents. Finance. City Clerk Recommend adoption.
J. Resolution 00-08, Of the Homer City Council Amending the Council's Operating Manual, Policies and Agenda and Meeting Guidelines. Mayor. City Manager. City Clerk. Recommend adoption.
K. PULLED FROM AGENDA IF REQUEST APPROVED: Resolution 00-09, Of the City Council of the City of Homer, Alaska Supporting Legislation for Mortgage Loans Covered under the Alaska Housing Finance Corporation Housing Assistance Program to be Equal Among all Geographic Areas of Alaska within the Specifications of the Funding Program. Mayor. Recommend Adoption.
L. Resolution 00-10, Of the City Council of the City of Homer, Alaska Commending David Brann for his Professionalism, Teamwork and Meritorious Efforts on the Kachemak Bay Area connected Trails System. Manager. Recommend Adoption.
M. Agenda addition if approved: Resolution 00-13, of the City Council of Homer, Alaska Authorizing the City Manager to Purchase Fire Department Firefighter Turnout Gear/Coats described in Purchase Order 26809 from Ln. Curtis & Sons in the Amount of $10,083. Fire Department. City Manager. Fiscal Note: 1999 Acct. 100-5602.151 $10,083. Recommend adoption.
FENSKE/YOURKOWSKI - MOVED THE APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.
FENSKE/ - REQUESTED ITEM J. RESOLUTION 00-08, BE PULLED.
Mayor Cushing placed Item J. under Resolutions as Item C.
VOTE:(Item A. - I., L & M.) YES: FENSKE, YOURKOWSKI, MARQUARDT, KRANICH, CUE.
Motion carried.
VISITORS
ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS
A. Special Presentation Re: Kachemak Nordic Ski Club and Commendation to Dave Brann.
David Brann gave the credit to those volunteers involved with the Ski Club and specifically noted Ken Jones.
B. Mayor's Travel Narrative
The Mayor commented on the great AML Annual Conference.
PUBLIC HEARINGS.
ORDINANCE(S)
CITY MANAGER' S REPORT
A. City Manager's Report.(Ice/Crane Time, Treasurer's Report, Small Boat Harbor, Williamsport-Pile Bay Road Upgrade, TORA update, Skyline Tank Project.)
B. Game Permit Report, from City Clerk
City Manager Drathman noted the commendation from Fire Chief Painter to Sgt. Rosencrans and Officer Hutt for their efforts and quick actions on the Ptarmigan Arts apartment fire.
COMMITTEE REPORT
PENDING BUSINESS
A. Memorandum 99-222, from City Manager, Re: Terminal Use Permit, permit change.
Postponed on 12/13/99, MAIN Motion is on the floor: WELLES/YOURKOWSKI - MOVED TO ADOPT THE RECOMMENDATION OF MEMORANDUM 99-222.
Recommendations: Port/Harbor Commission recommends that the City Council approve the Port/Harbor Advisory Commission's recommendations as detailed within the memorandum. Harbormaster's recommendation concurs with the notation Definitions H. should be revised to read: "Long shore Services" means any act of cargo loading or unloading, direct loading or unloading, handling or storing of cargo, or line handling to moor and unmoor vessels at the docks.
Memorandum from Port Harbor Director, with recommended amendments.
Recommendations: Approve recommendations of Memorandum 99-222 with respect to revisions to Section 24, Insurance and Section 1. H. of Terminal Use Permit. Approve Harbormaster recommendation for revision to Section 8. Compensation as indicated in memorandum.
FENSKE/YOURKOWSKI - PROPOSE AMENDMENT AS RECOMMENDED BY THE HARBORMASTER PERTAINING TO SECTION 8. ON PAGE 131 (132, 133) DATED JANUARY 4, 2000.
There was some discussion on the TUP language and generally that it seems fairly clear and simple.
City Manager Drathman stated that the language seems straight forward, there seems to be some confusion on what wharfage is, what a TUP is and how it works. The 10% fee is not new, it has been in place in 1989. The only change is the definition of long shoremen duties that includes tying up vessels, this was not in there before. It had been assumed by some that it was included and by another that it was not there. Wharfage is for wear and tear on the dock and is based on tonnage. The Terminal Use Permit of 10% is so that the City is compensated for taking a public facility, paid for by tax payers money and owned by everyone in this community, and letting one company at a time have exclusive use of that facility. When North Star is using the facility and providing their services we are asking for 10% of whatever they charge. There is nothing unusual or difficult to track at all. The City wants to see their bill, their billing for expenses and the City wants 10% of that. If there is no charge then the City would be letting someone use a public facility to make money. The City has been working on this TUP for the better part of a year. He encouraged the Council to move forward and if any language changes are needed that can be done later. This is dealing with independent third party contractors who are making money using the City dock. The person shipping the freight is paying wharfage. The individual doing their own loading and unloading is paying the City 10% of what they would be billing themselves if they were billing themselves, which puts everyone on a level playing field. The recommended amendment redefines section 8. Regarding the mooring and moorage of vessels this was a clarification not a change.
North Star was encouraged to meet with the Port/Harbor Commission regarding their concerns on the TUP.
KRANICH/MARQUARDT - MOVED TO AMEND (PAGE 132) TO DELETE IN SECTION C. IN THE FIRST SENTENCE DELETE THE WORDING "COPIES OF PERMITTEE'S CUSTOMER INVOICES AND".
Councilmember Kranich stated that his concern was a report of City negligence in confidentiality regarding customer invoices.
City Manager Drathman affirmed that the City does keep things confidential. He stated that either he is misunderstanding or there has been some slip up. He will look into this matter.
Councilmember Yourkowski noted that if the City had these records there would not have been a need for the audit that was conducted.
VOTE:(amendment to amendment 1.) NO: MARQUARDT, KRANICH, CUE, FENSKE, YOURKOWSKI.
Motion failed.
VOTE:(amendment 1.) YES: KRANICH, CUE, FENSKE, YOURKOWSKI, MARQUARDT.
Motion carried.
The City Manager stated that a terminal user applies at the Port/Harbor for a TUP, fills out the information, it is sent to the City and if filled out properly with the proof of insurance the permit is issued. If there is any deviation from the standard the permit is rejected. The TUP is not negotiated and everyone gets the same TUP.
VOTE:(main amended motion) YES: CUE, FENSKE, YOURKOWSKI MARQUARDT, KRANICH.
Motion carried.
NEW BUSINESS
Mayor Cushing called for a recess at 8:55 p.m., reconvening the meeting at 9:10 p.m.
RESOLUTIONS
A. Resolution 00-11, Of the City Council of Homer, Alaska in Support of Alternative 1 of the Mariner Park Restoration Environmental Assessment, the Preferred Alternative. Planning Commission.
Memorandum from Planning Director as backup.
YOURKOWSKI/CUE/MARQUARDT - MOVED FOR APPROVAL OF RESOLUTION 00-11 BY READING OF TITLE.
Dave Erickson received high marks for the exhaustive study, the draft Environmental Assessment. In response to Council inquiry Mr. Erickson advised that uses allowed under a Conservation Easement are not a part of this resolution and are between the City and the trust. Restrictions on the use of motorized vehicles and access to the outer beach can be written into the easement. The outer beach is the west side of the lagoon, the exposed beach to the Bay. The grasslands are a part of the outer beach. Motorized vehicles can be restricted from the inside of the lagoon.
Mayor Cushing noted that the City already has signage up on City property to not cut fire wood out of the storm berm with chain saws and not go in there with vehicles. The private property owners have asked for the same signs as well.
Dave Erickson stated that protection of the fire wood and high part of the berm and restrictions are another thing that could be incorporated into a Conservation Easement quite easily. FAA would just like to be involved in all the things that are allowed and the things that are restricted just to make sure that nothing is allowed that would attract hazardous wildlife. There is no federal involvement so the City does not have to go back to EVOS. The City can go ahead and do the easements and recommend to the private parcel owners that they do the same. The final draft is between the City and the trust organization such as the Kachemak Heritage Land Trust. Zoning can be changed a lot easier than a Conservation Easement. This is just a recommendation that the private parcel owners do similar to the City and put this area into a Conservation Easement, which is also between the private parcel owners and a trust organization
Councilmember Kranich suggested that some type of boardwalk with hand rails maybe made of rope be placed at the berm area and that the unique original native vegetation be protected. He further suggested that the interpretive signage could be along the boardwalk and possibly duck nests be made up as the ducks used to nest in that area. This could become a statewide attraction.
VOTE: YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.
Motion carried.
B. Resolution 00-12, Of the Homer City Council to Amend the City of Homer Personnel Regulations, Chapter Five, Employee Benefits, Section 5.1, Holidays. City Manager
Memorandum from City Manager as backup.
YOURKOWSKI/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 00-12 BY READING OF TITLE.
Councilmember Fenske stated that the way this reads it certainly makes a strong argument for providing this additional holiday. The fact that there was a lot of cutting on the part of the City to the 2000 budget should not go unnoted. There really is no cost to the City with this Resolution. He commended the City Manager for offering this to encourage and assure the City employees that they are appreciated.
VOTE: YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.
Motion carried.
C. Consent Agenda item J. Resolution 00-08, Of the Homer City Council Amending the Council's Operating Manual, Policies and Agenda and Meeting Guidelines. Mayor. City Manager. City Clerk. Recommend adoption.
FENSKE/CUE - MOVED FOR THE ADOPTION OF RECOMMENDATIONS OF RESOLUTION 00-08 BY READING OF TITLE.
The Mayor and the Council discussed the procedures for making changes to the Council's Operating Manual. There was a suggestion to have a set time once a year to make changes. Other comments were that any time a change is warranted that it be made. This particular change/amendment alleviates staff of additional work, reporting still has to be made and this simplifies the travel reporting process by removing it from the Consent Agenda and placing it under Announcements/Presentations/Borough Reports/Commission Reports.
Mayor Cushing emphasized that Travel Reports still need to be made before reimbursement by the City.
VOTE: YES: FENSKE, YOURKOWSKI, MARQUARDT, KRANICH, CUE.
Motion carried.
COMMENTS OF THE AUDIENCE
Otto Kilcher thanked the Council for the meeting and for listening to him. He commented on the Mayor mentioning something about information on the Pile Bay Road and that this is a significant project and does touch on the commerce of Homer quite a bit . This project had been going forward for a long time and means a lot of change in the freight out of Homer. Those people will be keeping an ear tuned on the cost of that rate. Mr. Kilcher stated that he did not mean to sound terribly negative toward the City Administration and that he is in favor of some kind of demurrage for moving freight or the 10% fee or additional wharfage. Wharfage is deemed as applying directly toward wear and tear of the dock, perhaps some creative book keeping could be done so that to the customer it appears as one charge. He commented on the Mariner Park thing that sounds real attractive. He expressed his opinion that the tradition of coal gathering is one truck load or quantity of gravel or some substance that does not get to migrate down the beach and fill in the Spit. Gradually the Spit is being burned up in coal fires. He voiced his personal desire that there be no coal or fire wood gathering along that stretch of beach, traditional or not.
Scott Francis voiced appreciation for Council listening to his comments earlier and wished that he had done a better job of explaining the situation at the port. He pointed out that it is definitely not as black and white to him at it apparently is to the Council. He commented on some of Council's comments. He noted hearing that anyone who uses the dock is required to get a TUP, and in that TUP there is a requirement for a 10% fee. North Star is very familiar with the language of the TUP, North Star negotiated the original TUP with the City of Homer in 1989. Mr. Francis stated that they, North Star, are very confident on the meaning of it and how it was applied up until recently, when it became grey in their eyes. He stated that his understanding is that if Sealand came here they would have to get a TUP and pay the 10% fee based on that TUP. The question comes up if they are moving their own freight, they do not have an invoice. If there is an invoice the fee is easy. How is the cost monitored of that operation and how is the 10% monitored when there are no invoices. Mr. Francis voiced concerns regarding competition and fairness matters with regard to the TUP and 10% fee. North Star rates could be easily five to six times higher than Sealand's or Foss's cargo handling allowance. It seems that the focus is on employers that are paying high wages and benefits or maybe union employers period or on North Star. There is definitely an ambiguity and this is not being applied levelly right across the board. He encouraged the Council to let the Port/Harbor Commission open this matter back up and review it and get North Star's input. He noted that North Star has employees and equipment sitting out there, year round, seven days a week, three hundred and sixty five days a year, ready to go to work and able to take care of the freight that shows up. There are no long term contracts. He reported that last year there was a little over $7,000 revenue on their $250,000 crane.
Asaiah Bates commended the Council on the very interesting and educational meeting in terms of the many meetings relating to this particular issue. The City Manager gave an excellent projection and formulated a very clear picture as did Scott Francis regarding the TUP and the 10% fee. He stated that he must go with the City Manager and his clarity of this issue that relates to the City and the operation that has to be and is now in the process. He suggested that the Council and anyone else make a covenant to do their home work on whatever the issue might be such as when the Mayor made a change that related to Council or whatever the circumstances might be. He noted that the Council has the right at any time to bring in a Resolution or suggestion on the agenda that will address that issue and bring it into a full absolute discussion. He thanked the Council and wished all a happy new year.
COMMENTS OF THE CITY ATTORNEY
City Attorney Tans on standby per contract if needed:
COMMENTS OF THE CITY CLERK
City Clerk Calhoun had no comment.
COMMENTS OF THE CITY MANAGER
City Manager Drathman stated that he would work with Councilmember Kranich regarding the confidentiality of records and will draft a Resolution for Council's consideration as deemed necessary. On behalf of the City employees he thanked the Council for adopting the birthday holiday Resolution 00-12. Those employees immediately affected are Tamara Hagerty, birthday on January 1st and fourteen years with the City; Bill Abbott, birthday on January 1st and one year with the City; and Jean Mack, birthday celebrated today and seven years with the City. He stated that sometimes it is easy to forget how well the City of Homer runs and that it actually works. Mr. Drathman lauded the public works department for all their work during the alternating blizzard and rain storms and that Homer's streets were kept in better shape than any other place on the peninsula, around the clock. Passing this resolution voices an appreciation from the Council of the City employees.
COMMENTS OF THE MAYOR
Mayor Cushing thanked Dave Brann, Ken Jones and the Nordic Ski Club for the great work. He voiced appreciation to Dames and Moore for the work on the Mariner Park Environmental Assessment. He commented on the access to the Council's agenda that the Port/Harbor Commission has through the City Manager and that it is obvious that there are some Port/Harbor Commissioners that want to review the TUP. He suggested that the Commission do this review, take further action on the TUP and bring it back to Council. He noted the importance of clarifying the TUP and for the action taken tonight. He thanked the Council for working together on the meeting schedule so that everyone could have a nice holiday break, since the middle of December, and that he looks forward to the next thousand years.
COMMENTS OF THE CITY COUNCIL
Councilmembers Fenske and Cue had no comments.
Councilmember Marquardt stated that he is happy to be back again for the start of another year and echoed the comments of the Mayor. He noted the excellent work by the Nordic Ski Club and thanked the Council for the funding support of this club and other service organizations.
Councilmember Yourkowksi commented on the funding to the Snomads who recently rescued a couple of people. Regarding the TUP he voiced agreement with the Mayor and urged North Star to work with the Commission. He stated that the City wants North Star to stay around and work on the docks as much as possible. Mr. Yourkowski stated that he appreciated Scott Francis' comments on the competitiveness of the dock and that those issues need to be reviewed more.
Councilmember Kranich asked if the administration had considered the use of a "force account" under the TORA for the replacement of the floats, especially the wood floats and that someone could be hired, a short term employee, to oversee the work. He commented on the TUP and that he is not convinced that the 10% on billing is the appropriate avenue for revenue. Mr. Kranich noted that longshoremen costs and high freight costs have always existed in Homer, Homer has always had the highest fees as far back as he can remember. He suggested that the Commission review alternative methods to gain the revenue that the City needs from that type of service. He stated that he does not believe in someone using the City facilities for nothing; the shipper, the consumer or the person providing the service. Councilmember Kranich stated that several constituents brought up concerns about a Councilmember's conflict of interest not declared regarding Bunnell Street Gallery. After some discussion, Councilmember Kranich exhorted all Councilmembers to be very sensitive about public perception and to hold to a very high standard.
ADJOURNMENT
There being no further business to come before the Council the meeting was adjourned at 10:11 p.m. The next regular meeting is scheduled for January 24, 2000 at 7:30 p.m. in the Homer City Hall Council Chambers.
_________________________________________
MARY L. CALHOUN, CMC/AAE, CITY CLERK