PORT AND HARBOR ADVISORY COMMISSION UNAPPROVED

REGULAR MEETING

APRIL 28, 2010

Session 10-03, a Regular Meeting of the Port and Harbor Advisory Commission was called to order at 5:07 p.m. by Chair Ulmer on April 28, 2010 at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONER ZIMMERMAN, HOTTMAN, ULMER, WEDIN,

HARTLEY, CARROLL, VELSKO

STAFF: HARBORMASTER HAWKINS

DEPUTY CITY CLERK KRAUSE

Commissioner Hartley arrived at 5:50 P.M.

APPROVAL OF THE AGENDA

VELSKO/WEDIN – SO MOVED.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

There were no public comments.

RECONSIDERATION

There were no items for reconsideration.

APPROVAL OF MINUTES

A. Regular Meeting Minutes for February 24, 2010

ZIMMERMAN/VELSKO - MOVED FOR APPROVAL OF THE MINUTES AS WRITTEN.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

There were no visitors scheduled.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS

(Chair set time limit not to exceed 5 minutes)

A. Port & Harbor Director’s Staff Report – March and April 2010

Harbormaster Hawkins stated there was no quorum for the March meeting. The staff report is included in the packet.

Harbormaster Hawkins commented on the progress with Seldovia Village Tribe ferry and construction. He stated that there is no start date for construction of the Seldovia Village Tribe Ferry due to permitting problems. The next open window date is June 30, 2010. The lease negotiation has been completed.

A recycling container has been installed on the Spit by the Kenai Peninsula Borough. The sponsoring business is Coal Point Seafoods. A teleconference was held earlier today, April 28, 2010, regarding the Tsunami Warning System and glitches within the system. These are organizational in nature. Tests are being issued by the weather bureau. The Port will be encouraging the Borough to perform testing.

A teleconference was conducted this morning, April 28, 2010 on establishing an Alaska Maritime Academy. It was noted that most maritime academies are state supported. It has been recommended to petition the Governor for support.

Long time City employee Julia Martin has retired and Lisa Ellington has accepted the promotion to Administrative Supervisor.

PUBLIC HEARING (3 minute time limit)

There were no public hearings scheduled.

PENDING BUSINESS

A. Draft Letter to the State of Alaska Department of Transportation Re:

Erosion at the Harbor Entrance

There was a brief discussion on the erosion issue at the harbor entrance and possible fixes. It was noted that the required funding would not be taken from the Port & Harbor Reserves. There are grant monies available.

There was no further discussion.

NEW BUSINESS

A. Ramp 5 Electrical System Upgrade

WEDIN/ZIMMERMAN – MOVED TO REQUEST STAFF RESEARCH THE SCOPE OF WORK AND COST OF UPGRADING THE ELECTRICAL SYSTEM ON SYSTEM 5 FLOAT AT RAMP 7. THIS MAY INCLUDE ADDITIONAL PEDESTALS ON THE NORTH END, REPLACING THE PRESENT SYSTEM THAT REQUIRES CONSTANT REPAIR AND EXPLORING THE POSSIBILITY OF INSTALLING A HEAT TRACE PROTECTED WATER LINE.

Discussion included clarification on the location of this motion System 5, Ramp 7 – the big boat float.

Commissioner Wedin stated he has received comments and observations from harbor users that it is easier for them to plug in at Seward to perform work; it is preferred to stay in Homer but there needs to be more options for plugging in and that the daily rate was a bit high and as such is a deterrent to some users; it was noted that on the north end of this float there is only one special pedestal available.

Some requests have been made for 480 but common 3 Phase service has been requested. Discussion ensued on the number of pedestals; the cost of a pedestal, the options available for an upgraded pedestal. Additional points made were the “stacking” required to hook up to a pedestal. This was tactic was easier for owners with two boats. It was much more difficult if you only had one vessel and the float was crowded.

The discussion continued regarding the access to potable water and the use of heat trace water lines. Comments noted were: Installation is expensive and could cause problems with availability on other ramps (why that ramp and not mine.) Petro Marine does allow boat owners to fill up their tanks but discourages window washing, etc. The City charges Petro for water and it was suggested to offer Petro a deep discount in order for users to have access to this water for other uses.

There was no further discussion.

VOTE. YES. HOTTMAN, VELSKO, ZIMMERMAN, ULMER, WEDIN, CARROLL

(Commissioner Hartley was not present at the time to vote on this motion.)

Motion carried.

B. Memorandum from Port and Harbor Director Re: Kachemak Wooden Boat Society

Lease Proposal

VELSKO/HOTTMAN – MOVED TO FORWARD THIS PROPOSAL TO THE LEASE COMMITTEE FOR REVIEW AND RECOMMENDATION TO COUNCIL AND INCLUDE THE PORT & HARBOR ADVISORY COMMISSION RECOMMENDATION.

Discussion points included that this would be a separate lease from the Pier One Lease but within the proximity of the Pier One building. This proposal would mean the loss of potential revenue from a few campsites. There will be no designated parking, existing parking would be used. A cursory review of the potential revenue from the camping sites by Commissioner Zimmerman was believed to be minimal. The proposal submitted is for a total of $1.00 per year for 30 years. Commissioner Zimmerman was in favor of the proposal. Commissioner Wedin commented that it was a favorable since it appeared that the Wooden Boat Society was going to build a substantial building.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Shelly Erickson, Economic Development Advisory Commission, Chair Re: Economic

Development Advisory Commission (EDC) Proposed Lease Policy Changes

Chair Ulmer stated that the EDC has worked on the Lease Policy document for an extended period of time and that the Port & Harbor Commission met with the EDC during a joint worksession on April 19, 2010. Chair Erickson was to explain and answer questions on the recommended changes to this document.

Brad Faulkner, EDC Commissioner stated Mrs. Erickson was unable to attend the meeting due to a time conflict with a prior appointment. He was present to answer any questions the Commission may have regarding the proposed changes. He further commented that he did not have time to prepare anything as this was a last minute request to attend this meeting. He would answer any questions from the Commissioners to the best of his knowledge.

He noted the changes represent an in-depth chapter by chapter review that the EDC worked on for approximately 18 months. He commented that the recommended changes came about for number reasons, mainly due to the differences in every single lease.

Points noted regarding the recommended changes to the Lease Policy document were:

1. Make-up of the Lease Committee to include one council member and additional members of the public. Current membership is perceived to be stacked in favor of the City with staff representing half of the members.

2. Changes to the current document change the whole structure.

3. Changes encourage more privatization of the Spit which is a public resource.

4. Removing restrictions to lease terms, open ended terms do not allow the public opportunities.

Commissioner Velsko commented that most of the recommended changes in his opinion were common sense changes. He was in favor of recommendation of the proposed changes.

Chair Ulmer stated she reviewed the recommended changes in a business sense. She viewed these changes as more attractive to the business community. She believed the proposed changes made a lot of sense. She endorsed recommendation of the proposed changes.

Commissioner Zimmerman commented that the changes turned the document in a common sense document. It makes it easier to understand and deal with. It does not need to read like a lawyer wrote it like the lease agreement does.

Commissioner Wedin commented on the change specifically noted in Chapter 18.1 regarding the selling of city owned land. He could not support recommending these proposed changes with this change included. He agreed with the Harbormaster regarding privatization of the spit. He was very uncomfortable that it (the draft document) still reflected that change.

Chair Ulmer responded that this was struck during the worksession. She further stated that strictly speaking about leases, as a business person, she would not want to invest that type of money on the Spit the way it is set up now. There are no guarantees.

Harbormaster Hawkins understood the viewpoints of the business owner, but to sell off land or offer open ended leases is not responsible land management. It would be easier yes, but then the land would not be available for the public use. Managed for business, lose control of the land.

Commissioner Velsko reminded the Commissioners that the Lease Committee and the Commission did not support selling of land on the Spit. The EDC supports offering sales as a tool to encourage leases on the Spit. The City Council has the ultimate say so on a lease; the Committee and Commission are advisory only.

Discussion continued regarding inclusion of possible purchase of the property in a lease; appraisals not assessments should be preferred valuation method; affirmation that lessees can have a business with longevity; offer the opportunity to make a real investment, viable; current lessees having to remove structures prior to negotiating a new lease; room for compromise; historical lease requirements; current policy on lease extensions; previously supported sending all out to RFP; remaining issues can be worked out with input from Commission and Lease Committee.

VELSKO/WEDIN – MOVED TO ACCEPT THE PROPOSED CHANGES TO THE LEASE POLICY DOCUMENT AND RECOMMEND FORWARDING TO CITY COUNCIL FOR REVIEW.

Further discussion regarding the tracking or striking of recommended changes from Chapter 18 of the Lease Policy ensued and reluctance to support said changes was offered by Commissioners Wedin and Hartley.

Commissioner Velsko assured the Commissioners that a compromised was reached regarding the issue of selling city owned property.

Commissioner Zimmerman stated that he did not recall the Worksession group addressing Chapter 18 and noted the referenced Chapter 11 changes which addressed those same concerns.

Chair Ulmer commented for consideration by the Commissioners that it will be considerable time before a final document is drafted, if a motion could be made tonight and attendance at the next worksession all concerns can be expressed to City Council. She explained for clarity that it was believed the original document contained redundancy and was a very long awkward document that was hard to understand and was the reasons behind the recommended changes proposed by the EDC.

Mr. Faulkner offered as an example of the redundancy, striking paragraph E in Chapter 3, Properties Available for Lease, because this was micro-managed by the Port and Harbor Staff, as it was effectively addressed in paragraph D of the same chapter.

VOTE. ABSTAIN. CARROLL

YES. WEDIN, ULMER, HARTLEY, ZIMMERMAN, VELSKO, HOTTMAN

Motion carried.

Chair Ulmer requested notification when the next worksession will be on this document.

D. Election of Chair and Vice Chair

Chair Ulmer opened the floor for nominations for chair.

Commission Velsko nominated Commissioner Ulmer as Chair. Commissioner Wedin seconded the nomination. There were no further nominations.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Chair Ulmer opened the floor for Vice Chair.

Commissioner Velsko nominated Commissioner Zimmerman. Commissioner Hartley seconded the nomination. There were no further nominations.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

INFORMATIONAL MATERIALS

A. Harbormaster’s Monthly Statistical Report for February and March 2010                        

B.    Weekly Crane & Ice Report                                                                                     

C.    Deep Water Dock                                                                                          

D.    Pioneer Dock

E. Pioneer Dock Ferry Landings

F.    Letter to Governor Parnell Re: House Bill 329

G. Memo to City Council from Port and Harbor Advisory Commission

Re: Support of House Bill 329

Chair Ulmer requested information regarding the ice plant as she has recently heard comments regarding the drain the ice plant puts on the Harbor resources.

Harbormaster Hawkins stated that quite the opposite is true. It is a money maker. It is not the only ice plant on the spit, but it is the only public ice plant on the Kenai Peninsula. The plant stays a capacity throughout the summer.

Discussion points were that it was an expensive facility due to its age, 27 years old, and there are some upcoming major machinery replacements that will be needed. Grants are available for matching funding. In the future it may be beneficial to divide the facility into storage and production.

Harbormaster Hawkins, in response to Chair Ulmer’s question regarding reduction in numbers for stall wait listing, believed it to be based on the economy. Stalls for smaller boats are more of a luxury item. Some owners from Anchorage are putting in at Whittier since it is closer. It was commented that Whittier has private boat slips that are selling for $50,000 and have a maintenance fee like a condo. It was noted that there was a 15 year wait list for Whittier.

Commissioner Zimmerman requested further clarification on parking in the paid parking spots. He has received two different responses. Harbormaster Hawkins stated he could park in a spot and pay one time then leave and come back and even parking in another spot did not have to pay again, but Randy Rosencrans, Homer Police Department, stated as far as the Police were concerned you park, you paid, if you moved then you would pay again. He recommended that the envelopes should reflect that too. The envelopes have a spot where you can indicate the space number.

Commissioner Carroll commented that paid parking was only going to be passed on to the consumer. He stated that this is going to only cause more problems, and force the users who live in Homer to park further and further away from their slip. He saw no benefit or growth with this option.

Harbormaster Hawkins will speak to Chief Robl and get everyone on the same page.

COMMENTS OF THE AUDIENCE

Mr. Faulkner will report the concerns of Chapter 18 reflecting the deletion of the paragraph to EDC Chair Erickson.

COMMENTS OF THE CITY STAFF

Deputy City Clerk Krause had no comments.

Harbormaster Hawkins commented that the commission did not discuss the article related to the Alaska Harbor Observation Network. This monitors weather, wind, precipitation and wave height.

A brief discussion on the benefits compared to expense and duplication of services that are already being provided at substantially less cost ensued. It was noted that Seward has a proto-type installed.

He also noted the scholarship that was being offered by the Halibut Commission.

COMMENTS OF THE CHAIR

Chair Ulmer thanked Brad Faulkner for attending the meeting. She thanked the Commissioners for coming also.

COMMENTS OF THE COMMISSION

Commissioner Hottman said he will be absent from the May meeting. He thanked the Harbormaster for the staff assistance to the ADF & G.

Commissioner Wedin apologized for missing the last meeting.

Commissioner Hartley apologized for arriving late.

Commissioners Zimmerman and Velsko had no comments.

Commissioner Carroll apologized for not being in attendance also.

ADJOURN

There being no more business to come before the Commission the meeting was adjourned at 6:56 p.m. The next regular meeting is scheduled for May 26, 2010 at 5:00 p.m. in the City Hall Cowles Council Chambers.

RENEE KRAUSE, DEPUTY CITY CLERK I

Approved: