PORT & HARBOR ADVISORY COMMISSION                                                              UNAPPROVED

REGULAR MEETING                                          

JUNE 24, 2009

 

Session 09-05 A Regular Meeting of the Port and Harbor Advisory Commission was called to order at 6:00 pm on June 24, 2009 by Chair Cathy Ulmer at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

PRESENT:                    COMMISSIONERS ULMER, VELSKO, WEDIN, AND HOGAN

 

ABSENT:                      COMMISSIONERS HARTLEY, CARROLL (EXCUSED)

 

STAFF:                         PORT & HARBOR DIRECTOR HAWKINS

                                    DEPUTY CITY CLERK KRAUSE

 

APPROVAL OF THE AGENDA

 

Chair Ulmer requested a motion to approve the agenda.

 

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 May 27, 2009

 

Chair Ulmer requested a motion to approve the minutes.

 

WEDIN/VELSKO- MOVED TO APPROVE THE MINUTES OF MAY 27, 2009 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 – June 2009

           

Port & Harbor Director Hawkins gave a brief summary on the following:

1.         Underway Policy was approved by City Council.

2.         The changes to the Commissions Bylaws were approved.

3.         The RFP was advertised for WiFi services for the Harbor.

4.         Short term lease and terminal use permit with Peninsula Salvage for 4 months for half of the chip pad.

 

There was a brief discussion regarding some of the details of this short-term lease including if they left a pile of metal on the lot.

5.         Meeting with Rescue 21 over MOU.

6.         Port Security Plan ready for submittal in June.

7.         Dredge Spoils 20 year plan.

8.         Water Waste Management.

9.         Pioneer Dock Lights.

10.        Mooring Buoy has been reinstalled.

11.        Repair water leak; credit will be extended.

12.        Saved one boat, lost one skiff.

13.        Installed (placed) portable sign posts around the Spit to control parking.

 

There was a brief discussion on the status of the Spit Comprehensive Plan and Parking Study. The installed signage prohibiting vehicles over 20 feet and camping. It was noted the decrease in traffic, foot and vehicle, on the spit this summer.

 

Commissioner Hogan asked about additional Disabled Parking spaces near the ramps. Harbormaster Hawkins responded regarding the rules and limitations on disabled parking.

 

14.        A woman tripped on the boardwalk at the Salty Dog had to medi-vac to Anchorage due to a spiral fracture. No liability on the City’s part as far as the Harbormaster was aware.

15.        Response received from Seldovia Village Tribe on the questions submitted by the Commission and Lease Committee was received.

16.        Working on leases with Snug Harbor, Sport Shed, Kachemak Port Services.

17.        Appraisals on nine properties are due. Letter sent to Lessees regarding opportunity to get discount.

18.        Repairs completed on ice plant delivery system.

19.        Summer hire parking enforcement officers will be writing tickets this season.

 

Commissioner Hogan informed the Commission what the Economic Development Advisory Commission was working on within the Lease Policy document in relation to the property appraisals for lease property. The EDC is looking to delete that requirement in its entirety.

 

There was no further discussion.                                                                                                

 

1.             Budget Talk with Finance Director Regina Harville

 

Finance Director Regina Harville presented the 2008 Audited Financial Statements for the Port & Harbor. She stated that for the July meeting she would present budgeting documentation for the last six months of 2009 and 2008 for the Commissioners to review to assist the Harbormaster in creating the 2010 budget.

Mrs. Harville noted pages 3-14 provide an overview on how well the City did regarding the budget. She recommended paying strict attention to the figures located in the line items Loss before Contributions, Transfers, and Special Item, for 2008 were (1,083,986) and 2007 were (1,509,626) on page 76 of the report. These are key figures.

Mrs. Harville explained that the Port has a depreciation line item amount of $1,411,020. This non-cash expense puts the Harbor in the negative.

She noted that the Port did very well this past year. They did pay off the bond on the dock this year so that will help rebuild the cash.

Mrs. Harville noted that the line item, unrestricted, is currently a negative number and should reflect a positive amount that could cover approximately two to six months of expected expenses for the year.

There is no cash in the receivables line item because of the negative cash balance. The Port has been running in the negative for some time now.

 

 

Mrs. Harville explained the difference between depreciation expense, which takes care of the infrastructure repairs for example, and depreciation reserves where you physically take money and set it aside. She offered to provide the information on those items later.

Mrs. Harville answered questions from the Commission regarding the status of each department’s depreciation reserves.

Mrs. Harville is not aware of how the original figures were created for the depreciation reserves. She additionally responded to questions from the Commission regarding all interest is allocated to funds that have a cash balance; Withdrawals from these accounts require authorization from City Council; these funds are to be used strictly for capital expenditures/purchases; the Harbor will be debt free after the final payment of the bond. These payments amounted to approximately $211,000.00.

Mrs. Harville offered to meet with Commissioner Hogan separately since some information he was requesting was reviewed during the May meeting that he missed.

 

There was a brief general discussion regarding specific lines items shown in the budget.

 

Mrs. Harville pointed out the Statistical Section in the handout contained some informational data that represents a period of 10 years collected from the following sources:

                  Alaska Department of Community and Economic Development

                  Kenai Peninsula Borough

                  State of Alaska Assessor Office

                  State of Alaska Department of Labor

                  Kenai Peninsula Borough School District

                  Alaska Department of Labor and Workforce Development

                  City of Homer

 

She recommended reviewing each page and pointed out that the population figures for 2008 were 5390, which reflects a decline of 112 residents. She commented that it causes some concern.

 

There were no further discussions. 

 

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

           

There was no discussion.

 

PUBLIC HEARING (3 minute time limit)

 

None.

 

PENDING BUSINESS

A.            Memo to Planning Commission from Port & Harbor Commission Re: Overslope Ordinance

HOGAN/VELSKO – MOVED TO DISCUSS.

Port & Harbor Director Hawkins responded that he was unable to obtain information regarding sheet piling. There was a brief discussion regarding restrictions, obtaining information or recommendations without expending funds.


 

HOGAN/VELSKO – MOVED TO DIRECT STAFF TO RESEARCH AND BRING INFORMATION BACK TO THE NEXT MEETING, EXPENDING LITTLE OR NO FUNDS, ON THE FEASIBILITY OF USING SHEET PILE CASINGS.

 

There was no discussion.

 

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

B.            Rescue 21 – Future Plans Q & A         

 

There was no discussion.

                                       

C.            Letter to Seldovia Village Tribe (SVT) Re: Requesting More Information on Lease Proposal 

 

 Chair Ulmer requested a motion to discuss.

 

VELSKO/WEDIN – MOVED TO DISCUSS.

 

Commissioner Velsko commented on the response submitted by Seldovia Village tribe that it appears acceptable.

 

Port & Harbor Director Hawkins stated that there were a couple of items to review. He noted that the area of the approach ramp that is proposed actually comes in closer access to the float. It does provide adequate foot traffic but not vehicle traffic. He was seeking the Commission’s recommendations on the proposed ramp approach to JJ float considering that this will be owned by the City. The new diagram shows the ramp at 110 feet. The shelter that is proposed for the passengers is comparable to a bus shelter. The option for future motorized access would have hurdles to accommodate. There will be pedestrian access from Lot 21 and in the future lot 22. They will be building two separate ramps, one that is strictly acting in the capacity of a pier for a crane for the lifting and placement of totes on the foredeck. Neither of the proposed piers would allow vehicle traffic of any size due to width.

He confirmed that SVT would construct the ramps and give to the City in return for unrestricted use. The City had no plans or money to build ramps in this location in the near or foreseeable future.

There was still a concern regarding boat access under the pier at high tide. It would be limited to smaller boats and no sailboats. SVT proposes to improve the float by widening it to accommodate passenger approach. He will be meeting with SVT on June 25, 2009 at 4:00 p.m. The Commissioners are welcome to attend this meeting.

There was some concern expressed regarding access into the Harbor with the proposed new pier but there has never been an accident yet. SVT’s funding has not been reviewed at this time.

Commissioner Hogan expressed the concern that if the City will be the owner of this then they should have more involvement in the design and there should be a higher concern over the funding for the project.

 

VELSKO/HOGAN - MOVED THAT STAFF BE DIRECTED TO CONVEY CONCERNS EXPRESSED BY THE PORT AND HARBOR ADVISORY COMMISSION ON THE PROPOSED PUBLIC ACCESS BY SELDOVIA VILLAGE TRIBE (SVT) AND FORWARD THESE CONCERNS TO THE LEASE COMMITTEE.

 

There was no discussion.

 

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

NEW BUSINESS

A.                  Discussion Item: 2009 Capital Improvement Plan 2010 Recommendations                    

                        1.     Staff Recommendations: Be Prepared to Have Ideas Ready by July Meeting

 

Port and Harbor Director Hawkins stated this was informational in nature. He wanted the Commissioners to get their thinking caps on and have suggestions ready the next meeting. There will be documents in the July packet for review.

 

Chair Ulmer called a five-minute recess at 7:10 p.m. The meeting reconvened at 7:16 p.m.

 

B.                  Discussion Item: Maintenance of Fish Dock

                        1.     Fish Dock/Ice Plant Maintenance Power Point Presentation

 

 

Port and Harbor Director Hawkins explained that over the past winter a PowerPoint Presentation was created by Dan Cornelius, George Tyrer and Matt Clarke, to show the ice plant on Fishdock. Information included the maintenance, replacement cost, and life expectancy of the equipment.

 

A brief presentation followed with discussion and explanation of the various machines, when and if replaced, and the expected cost to replace. It was noted that the life expectancy of most of the equipment was 20 to 30 years old and the Ice Plant was 26 years old now. Much of the equipment and machinery involved in the production of ice was quite costly. Port and Harbor Director Hawkins wanted to bring awareness to the Commissioners on the status of the ice plant. It was going to cost a large some to bring back online if there was a serious failure.

He wanted to know what the long-term goals would be for the ice plant. After the recent break down it brought it home.

 

There were a few more comments and suggestions from the Commissioners on funding sources, the cost of new technology and if it can be integrated into the current facility.

 

There was no further discussion.

 

C.                  House Bill No. 84 – Sharing Fisheries Business Tax with Municipalities             

                        1.     House Bill No. 84                                                                                  

                        2.     Rep. Paul Seaton Sponsor Statement                                                                   

                        3.     2008 Port of Homer Fish Data Report from Fish & Game                                       

 

Discussion ensued regarding HB84 regarding sharing fisheries business tax revenue with municipalities. It was explained that if the fish brought into Homer were processed then Homer would benefit from 25% of the taxes collected. It was agreed that what was required was changing the meaning of what “processed,” meant. Since the fish is brought into Homer but not “processed” Homer does not receive any portion of the tax levied by the State. Need to change the word “process” to include “landing.” Any mention to the State they immediately respond by saying Homer needs to institute a landing tax. Points highlighted by the Commission were as follows:

1.         Fish landed in Homer and sent to Anchorage for processing, Anchorage would receive 50% of the raw fish tax. If the fish is taken to Kenai for processing the City of Kenai gets 25% and the Kenai Peninsula Borough receives 25%. Homer receives nothing.

2.         If not processed locally there is a formula used to distribute the amount based on volume. Dutch Harbor and Dillingham have large volumes. This is shared with Homer and the villages. Homer’s share is approximately $90,000.00

3.         HB 84 failed.

4.         Representative Seaton stated he would attend the July meeting to answer questions.

5.         The fish tax law requires a total re-write due to changes over time to the industry.

6.         Homer’s facilities get the wear and tear but have no benefits. The approximate amount generated is $3.2 million dollars.

7.         This revenue is the second largest source of revenue for the state.

8.         The coastal cities provide the infrastructure for the industry and endure the most of the costs to maintain that infrastructure.

9.         Homer has the highest value.

 

The Commissioners tossed around various suggestions on what could be done to make the issue fair to the City.

 

The Commission then discussed the safety issues presented on the Fishdock and possible remedies to correct these issues. It was determined that it would be a good sized project, requiring the docks to be closed. This was not budgeted this year so would have to be included in the budget for next year.

There was a brief discussion on prior repairs made to the dock area and if having an engineer reviewing the situation would be beneficial.

 

There was no further discussion.

 

D.                  Discussion Item: Video Surveillance

 

HOGAN/VELSKO – MOVED TO DISCUSS.

 

There was no discussion.

 

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Commissioner Hogan explained depending on future developments on this topic he might have a conflict.

 

He is building a fish plant, want to bring fish inside to weigh them, and a chain of custody is required on all fish, the fish must be visible to authorities from the boat until landed. He would like to install a video monitoring system with substantial Digital Video Recording (DVR) capabilities so that they can view the boat and fish at all times. He has thoroughly researched these systems. The issue is installing the system on a City dock. This system will enhance cleanliness and improve quality and the overall process. He does not see where this would intrude on Civil rights.

Commissioners discussed the liabilities to the City and recommended strongly to get the City Attorney and City Managers position on installation of these cameras.

 

VELSKO/HOGAN - MOVED TO HAVE STAFF CONFER WITH CITY MANAGER ON ISSUES REGARDING PRIVACY AND LIABILITIES CONCERNING INSTALLATION OF A VIDEO SURVEILLANCE SYSTEM.

 

There was a brief discussion.

 

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.


 

INFORMATIONAL MATERIALS

A.                  Harbormaster’s Monthly Statistical Report for May 2009                                   

B.                  Weekly Crane & Ice Report                                                                                     

C.                  Deep Water Dock                                                                                          

D.                  Pioneer Dock Ferry Landings                                                                                     

E.                   Pioneer Dock                                                                                                         

F.                   Water Usage                                                                                              

G.                  Commissioner Attendance Schedule for Council Meetings 2009                        

H.                  Lease Expiration Schedule                                                                            

I.                    Port & Harbor 2009 Strategic Plan                                                                             

J.                    Resolution 09-53 – Amending the Port & Harbor Advisory Commission Bylaws              

K.                  Memo to Lease Committee from Port & Harbor Advisory Commission Re: Snug Harbor Lease

L.                   Letter to Petro Marine Services from City Manager Dated June 9, 2009 Re: Fuel Prices

 

There was no discussion.

 

COMMENTS OF THE AUDIENCE

 

There were no comments.

 

COMMENTS OF THE CITY STAFF

 

Port and Harbor Director Hawkins thanked the Commissioners for their service.

 

Deputy City Clerk Krause had no comments.

 

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

 

None.

 

COMMENTS OF THE CHAIR

 

Chair Ulmer commented that she is proud of the Harbor. She will trade attendance at City Council meeting with Commissioner Hogan for September. She will attend the July meeting. She will not be attending the September Commission meeting.

 

COMMENTS OF THE COMMISSION

 

Commissioner Wedin thanked Bryan Hawkins.

 

Commissioner Velsko had no comments.

 

Commissioner Hogan stated that the Ferry has no plaque on the boat. He also stated that if Homer is the homeport then it should also sell them fuel, etc. There should be some return.


 

ADJOURN

 

There being no further business before the Port and Harbor Advisory Commission Chair Ulmer adjourned the meeting at 8:09 p.m. The next regular meeting is scheduled for 6:00 p.m. on July 22, 2009 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

 

                                                           

Renee Krause, Deputy City Clerk I

 

 

Approved: