PORT AND HARBOR ADVISORY COMMISSION UNAPPROVED

REGULAR MEETING

NOVEMBER 26, 2008

Session 08-11 A Regular Meeting of the Port and Harbor Advisory Commission was called to order at 6:05 pm on November 26, 2008 by Vice Chair Cathy Ulmer at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONERS ULMER, HARTLEY, MARTIN, HOGAN, CARROLL

ABSENT: COMMISSIONER KILCHER (EXCUSED)

STAFF: PORT & HARBOR DIRECTOR HAWKINS

CITY MANAGER WREDE

DEPUTY CITY CLERK KRAUSE

APPROVAL OF THE AGENDA

Vice Chair Ulmer requested a motion to approve the agenda.

HARTLEY/MARTIN – MOVED TO APPROVE THE AGENDA.

There was no discussion.

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 October 22, 2008

MARTIN/HARTLEY – MOVED TO APPROVE THE MINUTES AS WRITTEN.

There was no discussion.

The minutes were approved by consensus of the Commission.

VISITORS

None.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS

(Chair set time limit not to exceed 5 minutes)

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

Port & Harbor Director Hawkins reviewed his report and asked for any comments or questions.

He responded that only Alaskan moorage rates were used in the comparison. The marinas visited held 50-foot yachts and they were not comparable to the Homer Port. Commissioner Hartley was concerned about targeting the long liners and keeping them here instead of going south for the winter season.

Port and Harbor Director Hawkins summarized his conference meeting and commented that the best meetings are the meetings after the conference. He commented on the SECOM System replacement solutions and the biggest obstacle was it is a DOS system that must be converted to a windows base system.

There was a brief discussion on a vessel nearly sinking.

There was no further discussion.

B. Lease Committee Report

None.

PUBLIC HEARING (3 minute time limit)

None.

PENDING BUSINESS

A. Sales Tax Funding Memorandum – Draft Resolution

a. Discussion, Question and Answer with the City Manager

MARTIN/HARTLEY – MOVED TO DISCUSS.

There was no discussion.

VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

The Commissioners expressed concern that Commissioners Hogan and Velsko were not in attendance since City Manager Wrede was here to discuss the resolution. They brought this issue to the floor. The Commissioners felt they should be the ones to explain to the City Manager the intent behind the resolution.

City Manager Wrede stated he needed more clarification on the goals and intention of the resolution that the Commissioners wanted to submit to Council. He has received three clear ideas: Sales Taxes generated by the Harbor/Port were to be used to establish a fund; sales taxes from all revenue generated from the end of the Spit; and the Fund was to be set up like the Water & Sewer Enterprise Fund which is strictly made up from the users. Then there is the Homer Accelerated Water & Sewer Program (HAWSP).

City Manager Wrede clarified that the fund for HAWSP was established by a special vote. The residents agreed to a percentage of the sales taxes are deposited directly to the fund; it was established so that when City Council members change these funds cannot be taken away. He explained further that City Council can administratively calculate each year the sales tax generated by the Harbor revenue and transfer those funds to the Enterprise Fund already established in response to the concerns expressed by the Commissioners regarding the Port always in the red and being accused of not pulling their weight. Commissioner Ulmer would like more clarification on what the process is for the sales tax; she knows it is “sent up the road.” There was additional explanation that the sales taxes are sent to the Borough and 4.5% is distributed back to the City.

Deputy City Clerk Krause expressed her view on what the goals of Commissioners Hogan and Velsko were regarding the sales taxes generated by the Port & Harbor services; these funds should be returned to the harbor when asked by the Commissioners.

Further questions and discussion ensued on the following: on how the enterprise fund works and where the revenue comes from; where the monies initially given by the state when the City took over management of the Harbor were used; the Harbor has spent more than it has made and has used more of the reserve funds. Fuel costs were the number one reason; enterprise funds are managed by balancing the revenue and expenses; money is transferred each year from operations to the depreciation reserves; Getting the docks to generate more revenue; the fund consists of all docks and loading; retained earnings, where the funds are located, where they are generated, reserve funds “siphoned off”; what comprises the “retained earnings”.

Commissioner Carroll inquired what line item in the budget was used for the feasibility study. Port & Harbor Director Hawkins responded from the Depreciation Reserves. City Manager Wrede stated that many of the questions related to the budget could be answered by Finance Director Harville and recommended inviting her to a future meeting.

Commissioner Martin stated that the revenue flows from the Harbor to the General Fund then City Council wants to increase the fees because there is not enough revenue. Further comments were inaudible and could not be transcribed. Commissioner Martin emphasized that the goal of the resolution was to was to put the money back into the Harbor.

The Commissioners agreed to keep this item on the agenda for December and requested staff to invite the Finance Director to the next meeting.

There was no further discussion.

B. Port & Harbor Budget Review

a. Determine Item Review Schedule for Monthly Agendas

Vice Chair Ulmer requested a motion to postpone discussion on this topic.

HARTLEY/MARTIN - MOVED TO POSTPONE THIS TOPIC TO THE DECEMBER MEETING.

Discussion revolved around addressing this topic when they have the Finance Director available to answer questions and have Commissioners Velsko and Hogan in attendance also.

The motion was approved by consensus of the Commission.

NEW BUSINESS

B. Harbor Enterprises Lease Review Page 55

(1) Coal Point

(2) 30 Acre

Vice Chair Ulmer requested a motion to discuss.

HARTLEY/MARTIN – MOVED TO DISCUSS.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Ulmer was greatly concerned about safety since folks go out in their boats that do not have adequate fuel supply or have the availability to get fuel. Commissioner Martin stated that his review of the lease documents did not require the leaseholder to operate a fuel dock, that the lease does not contain mandatory minimum operating hours. He commented that on the business side the lease seems to be acceptable; there are some areas that require some adjustments or “tightened up.”

City Manager Wrede commented that he hopes to sit down with them very soon. The City has received a letter stating their intent to continue or renew the leases. He further stated that they do want some things from the City so there may be room to negotiate those points that are of concern to the Commission. Commissioner Martin noticed a clause in the lease that stated there could not be a 30-day vacancy period, which included operating the business although never counted he is sure this has occurred if not come very close. The operation of the fuel floats is not consistent and dependable.

Commissioner Ulmer felt that they must follow the mission statement of the Port & Harbor and making sure there is reasonable access to fuel is part of the Harbor’s mission. She then quoted the mission statement to emphasize her point:

“The mission of the Port and Harbor Department is to provide safe port and harbor facilities for our commercial clients, recreational users, and the general public, to manage and maintain these facilities cost effectively and to administer our Tariff and procedures fairly and equitably for all users.”

Commissioner Martin pointed out the 30 day clause on page 64 of the packet which stated “lease term forfeited if said premises shall be deserted or unused by Lessee for thirty days or more.”

City Manager Wrede explained that they are actually leasing the uplands and the city cannot force the company to keep open the fuel floats because the company owns the fuel floats. He suggested that the Commission could recommend that the City open up more land for leasing; this may bring in some competition. The potential leaseholders would be responsible for supplying the fuel floats, etc.

There was a brief discussion on what the City can require of a leaseholder; how many extensions were involved and the time period covered by this lease; whether the winter hours were advertised; complaints filed to the Leaseholder; added fees when they are open only for special customers.

City Manager Wrede stated that the final amended lease will go before Council for approval.

MARTIN/CARROLL- MOVED TO STRONGLY RECOMMEND TO BE INCLUDED WITHIN THE LEASE DOCUMENTS FOR THE COAL POINT LEASE AND 30 ACRE LEASE, GUIDELINES FOR ESTABLISHING WINTER AND SUMMER OPERATING HOURS TO COMPLY WITH THE MISSION STATEMENT OF THE HARBOR, AND THAT THESE GUIDELINES ARE ESTABLISHED TO BENEFIT THE USERS OF THE HARBOR IN THE BEST MANNER POSSIBLE.

There was a brief discussion regarding the motion and the intent of the leases. The Commissioners held a brief discussion on the probability and possibility of locating another fuel provider in that area if they opened up more land and the future development of the Port & Harbor area. It was noted that the Commissioners concerns could be forwarded in a memorandum.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Salt Water Wash Down

Vice Chair Ulmer commented the Salt Water Wash Down did not look feasible by the information supplied from staff.

Discussion on the installation of a salt-water wash down and probable solutions to conserve on fresh water on the dock. Information supplied by Port & Harbor Director Hawkins indicated usage is increasing at the dock. It was agreed that there was an extreme amount of water wasted. The fuel float shuts their water off at night. Hoses being left on cause this. Commissioner Carroll recommended installing automatic, low-tech squeeze apparatus for the hoses. The discussion ensued regarding the use of salt water and the corrosion and effects such use could and would cause. It was noted that retrofitting the floats built without water causes the additional problems and expense. This is more costly than if they had been built with water in the first place. The Harbor only provides minor repairs to these hoses as they are owner supplied, therefore the responsibility to replace defective hoses lay with the users.

There was a brief discussion on the water lines and effects of the freezing temperatures and ice.

There was no further discussion.

D. Strategic Plan for 2009 and Commissioner Attendance at Council Meetings

Deputy City Clerk Krause answered a few questions from the commissioners regarding the Strategic Plan and the Attendance at Council Meetings. Each Commissioner has been scheduled to attend a Council Meeting, they have a choice of which meeting they will attend and when the Committee Reports come up at the Council meeting they are to report what the Port & Harbor Advisory Commission is focusing on, projects, goals, if they support an ordinance or resolution that is on the agenda, etc. she emphasized that if the Commissioner assigned to the month cannot attend a meeting it is their responsibility to try to arrange with another Commissioner to attend.

The Strategic Plan is a work in progress and was put in this packet to give the Commissioners a head start on what they would like to include in their plan. It is best to have it firmed up by the January meeting. This will be an overall guideline used by the Commission. Such things that are included are long and short-term projects, such as adding harbor projects to the Capital Improvement Projects listing, the parking problems, etc.

Deputy City Clerk Krause recommended that each Commissioner come back to the December meeting with one thing that they would like to see included in the Plan. Then discussion can be held to prioritize those items along with who will do what, staff or Commissioners, when, how, etc.

There was no further discussion.

E. Moorage Agreements for Larger Vessels

Port & Harbor Director Hawkins responded to questions posed by the Commissioners.

Discussion evolved into the new harbor and the projected time period for implementing and building, unless there is a recession then it could take longer, costs to maintain, the City’s share of the costs.

There was no further discussion.

INFORMATIONAL MATERIALS

A. Harbormaster’s Monthly Statistical Report for November 2008

B. Weekly Crane and Ice Report

C. Deep Water Dock

D. Pioneer Dock

E. Pioneer Dock Ferry Landings

F. Memorandum to City Clerk Re: 2009 Meeting Schedule Changes

G. Existing Harbor Economic Impact Figures

There was no further discussion.

COMMENTS OF THE AUDIENCE

There were no comments.

COMMENTS OF THE CITY STAFF

There were no comments from staff.

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

None.

COMMENTS OF THE CHAIR

Vice Chair Ulmer commented that the Commissioners and staff are awesome and thanked the City Manager for attending the meeting.

COMMENTS OF THE COMMISSION

Commissioner Carroll stated he would like to have the Finance Director attend the next meeting to help explain the budget.

Commissioner Martin commented that he appreciated City Manager Wrede attending the meeting and he was impressed by the amount of rust inside the grinding…

Commissioner Hartley commented that when push comes to shove…money…appreciates…

Due to technical problems with the sound the Clerk was unable to fully transcribe the Commissioners comments.

ADJOURN

There being no further business before the Port and Harbor Advisory Commission Vice Chair Ulmer adjourned the meeting at 7:35 p.m. The next meeting is scheduled for 6:00 p.m. on December 17, 2008 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

Renee Krause, Deputy City Clerk I

Approved: