PORT & HARBOR ADVISORY COMMISSION UNAPPROVED

REGULAR MEETING

FEBRUARY 25, 2009

Session 09-02 A Regular Meeting of the Port and Harbor Advisory Commission was called to order at 6:00 pm on February 25, 2009 by Chair Otto Kilcher at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONERS VELSKO, ULMER, HARTLEY, KILCHER, WEDIN, AND HOGAN

ABSENT: COMMISSIONER CARROLL (EXCUSED)

STAFF: DEPUTY HARBORMASTER CLARK

DEPUTY CITY CLERK KRAUSE

APPROVAL OF THE AGENDA

HOGAN/ULMER - MOVED TO APPROVE THE AGENDA AS PRESENTED.

There was no discussion.

The agenda was approved by consensus of the Commission.

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

There were no comments.

RECONSIDERATION

None.

APPROVAL OF MINUTES

A. Meeting Minutes of January 28, 2009

Chair Kilcher requested a motion to approve the minutes.

ULMER/VELSKO – MOVED TO APPROVE THE MINUTES AS PRESENTED.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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 – February 2009

a. MOU – Homer Detachment of USCG Auxiliary Rescue 21 and the City of Homer Port & Harbor

b. Proposal Homer Enterprises, LLC

c. Memorandum from Lease Committee Re: Recommendation for Fish Factory

Chair Kilcher requested a motion to discuss.

ULMER/WEDIN – SO MOVED.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Deputy Harbormaster Clarke commented on the Memorandum of Agreement (MOA) request giving some background on the reason for requesting the MOA at this time. He explained that the vessel has not been used and the goal is to obtain the services of the vessel in exchange for the free electricity and moorage. The Harbor was seeking the Commissioners support on the MOA.

Discussion evolved concerning funding; crew; maintenance; current agreement established by a handshake twenty years previous; current status of vessel is inoperable; harbor staff required to relocate vessel frequently due to transient moorage; commitment is being sought to provide a Response Operational Status meaning the vessel is crewed and underway in one hour, so the harbor could benefit from the vessel. The Commissioners decided to postpone any decisions on the MOU until they received further explanation and or presentation of intentions from Rescue 21. The Commission directed staff to contact Rescue 21 to invite personnel to the March meeting to give presentation regarding the plans for the Quanah P .

Clarification was made between Rescue 21 Quanah P and the Safe Boat used by the Coast Guard Auxiliary; these are two different entities. Commissioners pointed out that the confusion lies in the MOA where it uses the combination of the two entities in the document. Deputy Harbormaster Clarke will make the correction.

VELSKO/ULMER - MOVE TO POSTPONE DECISION ON THE MEMORANDUM OF AGREEMENT REGARDING THE RESCUE 21 QUANAH P UNTIL INFORMATION AND MEETING HAS BEEN HELD WITH RESCUE 21 REGARDING THEIR INTENTIONS.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Discussions continued on Harbor Staff training; the Transportation Worker Identification Criteria (TWIC), a Federally mandated program now in effect and resulting requirements; what vessels are regulated under the CFR 104 regulations and at this time does not include fishing vessels, however the fishing vessels that are operated under the authority of merchant mariner licenses must have a TWIC card; the budget impact on the Harbor to implement the federal mandated security regulations; how the additional expenses have been funded since an operations budget sub account dedicated to terminal security has not been designated; if there was grant funding that could help pay for the TWIC card; design on the security gates; recommend looking into establishing a Certification Office for TWIC in Homer; and why Nikiski was chosen.

Deputy Harbormaster Clarke summarized the remainder of the staff report on facility security, the Fish Factory Lease recommendations from the Lease Committee and the Sport Shed lease. Commissioner Hogan commented that a recommendation the Economic Development Commission (EDC) will make regarding the Lease Policy is to refine the process, appraisals every 5 years is huge expense on businesses.

There was no further discussion.

B. Lease Committee Report (if a meeting was held since the last Commission meeting)

a. Meeting Minutes of the February 12, 2009 Special Meeting

ULMER/WEDIN – MOVED TO DISCUSS.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Velsko added that the Committee covered quite a few topics, but they did not discuss the Lease Policy. The Committee discussed and agreed on two sections with the most concerns and will hold another Special Meeting on March 19, 2009 at 3:00 p.m. to discuss them.

There was no further discussion.

PUBLIC HEARING (3 minute time limit)

None.

PENDING BUSINESS

A. Strategic Plan – Goals and Projects

HOGAN/ULMER – MOVED TO DISCUSS STRATEGIC PLAN.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Hogan requested how the strategic plan would interface with the bylaws. The Clerk confirmed that it is a planning tool.

Discussion ensued regarding items and topics each Commissioner wanted to see on the list. The following list reflects Commissioners suggestions and is not in priority order:

1. Sale of city owned land on the Spit.

2. Paving Freightdock Road

3. Restrooms for the dock

4. Control of the parking

5. Greater degree of review, better oversight and advisory capacity in items related to the budget.

6. Marketing to large cruise line companies.

7. Fund and develop marketing budget.

8. Formalize design criteria for overslope development.

9. Additional parking needs.

10. Research Port Authority – what would it take, what does it mean?

11. Recycling Station

12. Erosion control

13. Mitigation of derelict and abandoned vessels.

14. Long Range Planning Committee

There was a brief discussion on the possibility of the new Harbormaster Office being used as the kick off for Overslope. It was noted that the building would not survive being moved. Deputy Harbormaster Clarke stated postponing the idea of a new office should be considered with the construction of a new Harbor then it could be located in a place convenient to both harbors.

Deputy Harbormaster Clarke did comment that two landings were scheduled this season, May 15 and May 27, 2009. The ships agent for Holland America stated they were looking at frequent landings in 2010, but did not state the number. He further noted that Homer was restricted due to the agreements on the Pioneer Dock, multiple ferry landings, etc. However, the Deep Water Dock would be available with the exception of the renovations to be done. It noted that the cruise ships leave a lot of revenue when they are in town. He confirmed that there is no marketing budget, only advertising.

Commissioner Velsko questioned whether final approval was given or formalized for Design Criteria for Overslope Development. There was a brief discussion on the KSMA, visitation to different ports and possible criteria used in other ports. Commissioner Ulmer was sure that this was discussed in depth, certain requirements were specified, and the Commission requested the Clerk to research for the past minutes where design criteria were discussed with overslope development. Chair Kilcher recalled discussion was as early as the 1970’s.

Commissioner Hogan requested the strategic plan be placed on the agenda for a couple of months, then have a public hearing.

Commissioners agreed on a recommendation from Deputy Harbormaster Clarke to include Mitigation of Derelict and Abandoned Vessels. To create and design a comprehensive marine industry policy that encompasses cradle to grave concept. There has not been any consideration to industry decline and closure. The future promises more consolidated fisheries. These are displaced vessels with diminished or no economic value and are high-risk candidates for derelict and abandoned vessels.

Commissioner Velsko requested more information on what the plans were for the Husky II. Further discussion on the Husky II explored the extreme costs for HAZMAT control of abandoned vessels, that scuttling vessels is proactive; the problems with using these vessels for artificial reefs; possible recycling of these vessels by private enterprise; getting insurance companies involved – older boats mean additional liabilities; recycling is market driven that focuses too hard on the dollar profit and not the true cost to the environment and residents of a state, the longer one waits to take care of something the more it is going to cost and the better chance something else will happen that will increase the costs or danger exponentially.

The Commissioners requested Deputy Harbormaster Clarke to attend the next meeting to go more in depth on the mitigation of derelict vessels.

Chair Kilcher suggested a worksession before or after the next meeting. He would prefer after the regular meeting.

ULMER/HOGAN – MOVED TO HAVE A WORKSESSION AT 5:00 P.M. TO WORK ON THE STRATEGIC PLAN AND HAVE REGULAR MEETING AT 6:00 P.M.

There was a brief discussion on whether to have the meeting before of after the regular meeting.

VOTE. YES. ULMER, HOGAN, WEDIN, HARTLEY, VELSKO

NO. KILCHER

Motion carried.

B. Memorandum from Staff Re: Dedicated Sales Tax Funding

a. Resolution 09-20

Chair Kilcher requested a motion to discuss.

VELSKO/HOGAN – MOVED TO DISCUSS.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Velsko questioned whether City Council made a decision not to discuss this prior to the meeting. The Commission debated how the Councilmembers could just let this go without comment or discussion.

Discussion evolved into what the benefits would be if they (the Port) become a Port Authority. Some comments offered on the benefits; autonomy. Questions were raised regarding the process to establish a port authority. Commissioners agreed the likelihood of the City relinquishing control of the Harbor was non-existent.

Chair Kilcher requested the Clerk to research for previous discussions on port authority for informational purposes at the next meeting.

WEDIN/ULMER – MOVED TO SEND A REVISED MEMORANDUM TO CITY MANAGER WREDE REQUESTING THE CITY OF HOMER TRACK SALES TAX REVENUES GENERATED BY THE PORT AND HARBOR FOR ONE YEAR.

Chair Kilcher recommended either himself or Commissioner Velsko meet with the City Manager to get his support on this issue and find out why it was not discussed. He further recommended that each Commissioner speak with the Councilmembers. It is believed that Council did not want to discuss this because of the request to give back the monies to the Port and Harbor. It was noted how much sales tax revenue is generated by the harbor. It was a unified opinion that the Harbor does more than its fair share to provide sales tax revenue to the City and the Borough.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Further discussion on who will meet with the City Manager and who will present at the Council meeting ensued. It was agreed that Chair Kilcher will meet with the City Manager and impress upon him the importance of discussion and that this study be conducted. Commissioner Velsko will present at the first Council meeting in April.

There was no further discussion.

C. By-Law Changes

a. Adding agenda items

b. Adding Student Member

Chair Kilcher requested a motion to bring to the floor.

HOGAN/VELSKO – MOVED TO BRING TO THE FLOOR FOR DISCUSSION.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Discussion ensued on the process that applied to changes made to the bylaws.

Chair Kilcher pointed out that the wording was a bit awkward. There was a brief discussion on how the changes should read. Further dialogue debated whether “removing of agenda items” needed to be included. Items can be removed without a second or during approval of the agenda. Chair Kilcher requested clarification on deleting the line item dealing with removal of agenda items from the bylaws. Deputy City Clerk Krause explained that the Bylaws were for use before, during and after the meeting; she additionally outlined the proper procedure for preparation of the agenda.

KILCHER/VELSKO – ADDING ITEMS TO THE AGENDA MAY BE AT THE REQUEST OF STAFF OR INDIVIDUAL COMMISSION MEMBERS. REMOVAL OF ITEMS FROM THE AGENDA WILL BE BY MAJORITY VOTE OF THE COMMISSION.

There was no discussion.

VOTE. YES. KILCHER, ULMER, VELSKO, HARTLEY, HOGAN, WEDIN

Motion carried.

In response to questions raised by the Commissioners Deputy City Clerk Krause responded that it was not on the agenda so they could not address it even though it was similar the changes were specific on the agenda and recommended addressing it at the next meeting.

Recommended change –

Additional Members –

Student Representative - Appoint a High School Junior to serve on the Commission for a term to begin June of the Junior year through graduation.

This is to be a non-voting position on the Commission.

ULMER/VELSKO - MOVED TO ACCEPT THE CHANGES AS WRITTEN TO THE BYLAWS.

Commissioner Hogan felt this would offer an opportunity for a student to complete their senior project. It may look good on their resume and college applications.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Deputy City Clerk Krause requested confirmation that the Special Meetings section of the Bylaws was to be on the March agenda to address the verbiage.

There was a brief discussion on the requirements of noticing and making the changes.

VELSKO/HARTLEY – MOVED TO ADD SPECIAL MEETINGS OF THE BYLAWS TO THE MARCH MEETING AGENDA.

There was no further discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Budget Review

HARTLEY/ULMER – MOVED TO POSTPONE TO THE MARCH MEETING DUE TO THE LATE HOUR.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

NEW BUSINESS

A. MOU Homer Detachment of USCG Auxiliary Rescue 21 and the

City of Homer Port and Harbor

Chair Kilcher noted that this was discussed under the staff report. He then requested a motion to discuss.

There was no additional discussion due to lack of a motion to bring it to the floor.

INFORMATIONAL MATERIALS

A. Harbormaster’s Monthly Statistical Report for January 2008

B. Weekly Crane and Ice Report

C. Deep Water Dock

D. Pioneer Dock

E. Pioneer Dock Ferry Landings

F. Water Usage 2009

G. Commissioner Attendance Schedule for Council Meetings 2009

H. Memorandum dated February 18, 2009 from Lease Committee to City Manager Re:

Kachemak Port Services – Request for Proposal

I. Memorandum to Mayor Hornaday and City Council from Lease Committee dated

February 18, 2009 Re: Land Allocation Recommendations for 2009

J. Memorandum to Mayor Hornaday and City council from Port & Harbor Advisory Commission

Dated February 9, 2009 Re: Land Allocation Recommendations for 2009

K. Memorandum to Lease Committee from Port & Harbor Advisory Commission

Dated February 6, 2009 Re: Land Allocation Plan (LAP)

L. Memorandum to Homer City Council and City Manager Wrede dated February 10, 2009

Re: Public Hearings for Tariff Changes

M. Memorandum to Lease Committee from the Port & Harbor Advisory Commission dated February 6, 2009 Re: Fish Factory Re- Plat Request

Chair Kilcher inquired if there were questions or comments on the informational items.

Commissioner Hogan commented on Item L: Memorandum to City Manager Wrede and City Council regarding the Public Hearings on Tariff changes, that it did not go before Council as requested. Deputy Harbormaster Clarke responded he was privy to an email stating the City Manager extended his apologies but this memorandum was overlooked in his report and he will include it in the March 9, 2009 Manager’s Report to City Council.

Chair Kilcher requested permission to broach this topic during his meeting with the City Manager.

The commission agreed by consensus that he could address this topic with the City Manager.

There was no further discussion.

COMMENTS OF THE AUDIENCE

There were no comments.

COMMENTS OF THE CITY STAFF

Deputy Harbormaster Clarke stated that it was a learning experience and enjoyed his time working and learning with the Commissioners. He requested clarification from Commissioner Hogan regarding his comment at the LAP worksession on the EDC recommendation of sale of lots being released for RFP. If there was anything in writing substantiated that recommendation.

Commissioner Hogan responded that there was no memorandum as far as he knew; just a discussion that began as an EDC rubber stamp for the Port & Harbor recommendations. Discussion evolved on the promotion of development of private property and sale or lease of properties on the RFP lists. He further stated that last year the Port & Harbor did recommend that it may be time to review property for disposal by the City but did not list specific parcels.

Deputy Harbormaster Clarke commented on information on parcels for lease and confirmation from Council for the land allocation will be next month.

Deputy City Clerk Krause observed that a recommendation not made by the Commission for the LAP but discussed to some degree was the interest in getting a second fuel supplier on the Spit. However, there was another chance to add this to their current recommendations since the Council postponed decision on the LAP until April.

Discussion followed on the requirement to make specific designation in the current recommendations for the LAP; points discussed included - where the best location on the Spit for a fuel depot to be; the service hours of the current supplier; the remaining time on the current leaseholder; placement of the fuel supplier at the entrance of the Harbor; recommendation to add this to the strategic plan; obtaining advice from harbor staff. Chair Kilcher suggested that the Commissioners think on their suggestions and recommendations for a Fuel supplier for this harbor.

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

None.

COMMENTS OF THE CHAIR

Chair Kilcher thanked Renee, Matt and Bryan for all their hard work, they are great to work with, and for putting up with the way he loosely conducted the meetings.

COMMENTS OF THE COMMISSION

Commissioner Velsko stated that the Commissioners needed to make sure to get the discussion and recommendation for all the lots taken care of at the next meeting because the mayor has held off on the RFP.

Commissioner Ulmer stated she appreciated the staff and the help they gave them. She thanked Deputy City Clerk Krause for acting as the Commission “brain” at times.

Commissioner Hartley thanked Deputy City Clerk Krause and felt the Commission needed to work on the strategic plan and get it going.

Commissioner Wedin echoed the sentiments of the Commission, Kudos to the Staff; he felt the Harbor staff do a great job.

Commissioner Hogan stated he appreciated the work provided by Renee, Matt and Bryan. As far as the EDC recommendations on the RFPs he does not know where they are going and does not believe Council will do anything with it. Perhaps if they are just letting lots for RFP they can be for sale or lease. The city may get the best offer from someone who actually wants to do something. The lease policy has been a bit cumbersome as far as encouraging development.

ADJOURN

There being no further business before the Port and Harbor Advisory Commission Chair Kilcher adjourned the meeting at 8:15 p.m. There will be a worksession at 5:00 p.m. and the next regular meeting is scheduled for 6:00 p.m. on March 25, 2009 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

Renee Krause, Deputy City Clerk I

Approved: