PORT AND HARBOR ADVISORY COMMISSION UNAPPROVED

REGULAR MEETING

AUGUST 27, 2008

Session 08-08 A Regular Meeting of the Port and Harbor Advisory Commission was called to order at 6:00 pm on August 27, 2008 by Vice Chair Cathy Ulmer at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONERS ULMER, VELSKO, HOGAN, HARTLEY

ABSENT: COMMISSIONERS CARROLL, KILCHER, MARTIN (EXCUSED)

STAFF: PORT & HARBOR DIRECTOR HAWKINS

DEPUTY CITY CLERK KRAUSE

APPROVAL OF THE AGENDA

The agenda was approved by consensus of the Commission.

PUBLIC COMMENT REGARDING ITEMS ON THE AGENDA (3 Minute Time Limit)

None.

RECONSIDERATION

None.

APPROVAL OF MINUTES

A. Regular Meeting Minutes of July 23, 2008

Commissioner Velsko requested the minutes amended under Lease Committee Report, line 6, to reflect that the City Manager did not recommend support of a 50-year lease to AMHS. He wanted the direction of the Lease Committee. He then pointed out a portion of a statement required further clarification under the same topic, line 4, as it appeared unfinished.

Commissioner Hogan requested a correction to his statement regarding public transportation under Pending Business, Item A. His comment should reflect 35,000 for the entire borough population. Commissioners Hartley and Velsko commented that the borough population was between 50-60,000 persons.

HOGAN/HARTLEY – MOVED TO APPROVE THE MINUTES AS AMENDED.

There was no discussion.

The amended minutes were approved by consensus of the Commission.

VISITORS

Mr. David Zezula, Regional Contact with the National Oceanic Atmospheric Administration (NOAA), Coastal Survey, Anchorage. He introduced himself and gave a brief description of his position within NOAA. He responded to questions posed by the Commissioners regarding interest in homeporting their ships in Homer. Mr. Zezula’s response was that it is pretty much determined by higher ups. He confirmed that maintenance is usually done in the wintertime, so that negates having a more southern homeport. He did note that homeports for the ships usually go through a bid process. He noted that he will be the XO of the Fairweather next year and he would love for Homer to be their homeport. Commissioner Hogan asked if his organization was aware of the possible expansion of the Port of Homer; that it would tip the scales in the City’s favor if they had a ready made customer. Discussion developed on Tide Stations, ecological sensors and that Mr. Zezula could provide information on those things. Port & Harbor Director

Hawkins inquired on the costs for setting up Homer as Tide Station. Mr. Zezula stated that NOAA would provide Quality Control and maintenance but the City would purchase the equipment. The ballpark price of $30,000.00 to as high as $250,000.00 was given depending on the equipment. Commissioner Hogan asked if there was any further information on passage through the Arctic. Mr. Zezula responded that there is currently work being done on that in regards to shipping. Commissioners made a comment about NOAA better have an icebreaker. Mr. Zezula explained that there are only four ships owned and operated by NOAA. The remaining 50% of the projects is contracted out and that there are 6-7 main contractors bidding the work NOAA has to offer.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS

(Chair set time limit not to exceed 5 minutes)

A. Port & Harbor Director’s Staff Report – August 2008

Port & Harbor Director Hawkins commented that he attended the ICS 300 training to fill FEMA requirements. The sulfur shipment has concluded and is not expected back until next year. The Spit Parking Study that would appropriate $15,000.00 maximum funds from the Port and Harbor Reserves was postponed until the September 8, 2008 Council meeting.

There was a brief discussion regarding the prospect of City Council approving Ordinance 08-33 and on Resolution 08-81 being adopted by Council.

Discussion turned to the number of people who attended the Open House held by the crew of the NOAA ship Fairweather.

Port & Harbor Director Hawkins gave a brief summary on the winter power stalls and explained that if you pull your boat out there is a monthly availability fee charged every month whether used or not, however if you know you will be pulling your boat out, the Harbor office will have you sign a waiver and can then allow someone else to use it on a first come first serve basis. The Harbor office sends notices out. There is a list that boat owners can put their name on at no charge.

Port & Harbor Director Hawkins responded that there is no profit, the City owns the infrastructure and Homer Electric Association (HEA) owns the meter at the top of the ramp in response to a question/comment from Commissioner Hogan. Harbormaster Hawkins stated his office bills out at the meter rates. Commissioner Hogan stated the budget overage on Fishdock created havoc.

Port & Harbor Director explained that those numbers were not real; the projected use for the remainder of the year was three times the amount. Whatever the formula that was used to calculate and come up with those figures is incorrect. He had a concern there was a problem with the meter to result in such a high usage. He did get the previous three years invoices from HEA for review and determined that there were no equipment issues or spikes in use.

There was a brief discussion on moving boats to additional areas of the harbor that would make better use of the available slots.

There was no further discussion.

B. Lease Committee Report

Commissioner Velsko stated there was no meeting this past month. The Lease Committee forwarded their recommendations to the City Manager and has not heard anything further. He commented that the Port & Harbor Advisory Commission should send a recommendation on creating a timely schedule for the Lease Committee meetings. The Commissioners discussed the proper steps to take to ensure this happens; included in the discussion were the requirements of other committees and commissions regarding meetings.

It was noted by Commissioner Hartley that a memorandum was submitted to the City Manager and a copy is included in the packet on page 119. Vice Chair Ulmer asked staff if a resolution was drafted. Staff responded that they had not seen a resolution yet.

Vice Chair Ulmer suggested re-submitting the memorandum with stronger language and including the time limit for notice of a meeting to the members of the Lease Committee.

There was consensus among the Commissioners to re-submit the memorandum with specific language regarding setting a specific meeting schedule as required by other City committees and Commissions. Notice to the members of the Lease Committee should be no less than 30 days and no more than 60 days.

PUBLIC HEARING (3 minute time limit)

None.

PENDING BUSINESS

None.

NEW BUSINESS

A. Dedicated Sales Tax Funding for Port & Harbor Revenue Fund

Memorandum from City Clerk, Re: Dedicated Sales Tax Funding for Port & Harbor Revenue Fund

HOGAN/VELSKO – MOVED TO DISCUSS ITEM A.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Velsko opened discussion by summarizing that the Regional Economic study states the existing harbor generates approximately three million dollars and if those numbers are extrapolated by the 5% sales tax revenues, using items that are easy to quantify, those revenues should be designated as Port & Harbor revenues; especially since Councilmembers are implying that the Harbor is not making money. The Port & Harbor should be on the same playing field as the Water & Sewer. If the water & sewer gets the sales tax it generates then so should the Port & Harbor. We can play hardball to keep the Harbor solvent. The Harbor generates much more revenue than that when you consider the spin-offs. The sales tax generated from the bare bones items such as the moorage, and ice sales for example are pretty simple and cannot see why those revenues are not put into a fund.

The Commissioners agreed that the Port & Harbor is considered a “cash cow” for the City and are resenting the implications it is a drag on the City finances. Commissioner Velsko commented that the Port & Harbor is generating the revenue that is pushing the City’s economy.

They discussed more representation at the Council meetings, established conduits for dialogue between Council and the Commission. Commissioner Hogan related that during the Committee of the Whole portions of the City Council meetings there are a number of issues decided and discussed regarding budgetary items for the Port & Harbor and he felt the Port & Harbor Advisory Commission should be consulted before decisions were made. There was agreement by the Commissioners present.

Vice Chair Ulmer reiterated that attendance at the Council meetings by the Commissioners would bring some benefits and awareness to their issues.

VELSKO/HOGAN – MOVED TO RECOMMEND CITY ADMINISTRATION ELEVATE THE PORT & HARBOR ENTERPRISE FUND TO THE SAME LEVEL AS THE WATER SEWER ENTERPRISE FUND AS CONCERNS THE COLLECTION OF SALES TAXES.

There was no further discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was a brief discussion on the effectiveness of this recommendation and the likelihood it will be approved. Included in the discussion was that the City must recognize the amount of revenue that the Harbor draws in that benefits the other retailers. Additional topics briefly discussed were incentives if any that would encourage an increase in shoulder season revenues, relocating long term boats in the short term moorage section of the Harbor, and reconfiguring the entire space.

Commissioner Velsko requested this to be on the next agenda. Vice Chair Ulmer asked if staff can provide the information to compare summer and winter use, vessel numbers, etc.

Port & Harbor Director Hawkins briefly described that they have 920 stalls and last year there were 720+ signed leases. There are stalls that will only accommodate a vessel up to 21 feet.

Commissioner Hogan requested staff to provide Rates and utilization for the next agenda.

There was no further discussion.

INFORMATIONAL MATERIALS

A. Harbormaster’s Monthly Statistical Report for July 2008

B. Weekly Crane and Ice Report

C. Pioneer Dock

D. Pioneer Dock Ferry Landings

E. Deep Water Dock

F. Memorandum From Port & Harbor Commission, Re: Capital Improvement Plan, 2009 Recommendations

G. Memorandum From Port & Harbor Commission, Re: P/H Commission Support of Resolution 08-81 Requesting the Dept. of Transportation Transfer Parking Management and Enforcement Authority within the Sterling Highway Right of Way Between Freight Dock Road and Fish Dock Road to the City of Homer

H. Memorandum From Port & Harbor Commission, Re: P/H Commission Concerns Regarding the Funding for the Spit Parking Study, Ordinance 08-33 is Exclusive to the Port & Harbor Reserves

I. Memorandum From Port & Harbor Commission, Re: P/H Commission Recommendation Regarding Establishment of Regularly Scheduled Lease Committee Meetings

COMMENTS OF THE AUDIENCE

Mr. Zezula thanked the Commissioners for allowing him to participate.

COMMENTS OF THE CITY STAFF

Deputy City Clerk Krause had no comments

Port & Harbor Director Hawkins thanked the Commissioners for their time.

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

None.

COMMENTS OF THE CHAIR

Vice Chair Ulmer had no comments.

COMMENTS OF THE COMMISSION

Commissioner Hogan commented that it was a good meeting and reminded the Commissioners that the Economic Development Advisory Commission would like to set up a worksession with the Port & Harbor Advisory Commission sometime in October.

Commissioner Hartley comment could not be discerned by the Clerk to transcribe for the minutes.

Commissioner Velsko wanted to add to the next agenda changing out the overhead lights in the Harbor to LED.

There was a brief discussion on this topic regarding the unique methods for retrieving a stuck light tree and the possible overhead costs to employ those methods used.

ADJOURN

There being no further business before the Port and Harbor Advisory Commission Vice Chair Ulmer adjourned the meeting at 7:00 p.m. The next meeting is scheduled for 6:00 p.m. on September 24, 2008 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

Renee Krause, Deputy City Clerk I

Approved: