PORT & HARBOR ADVISORY COMMISSION                                                              UNAPPROVED

REGULAR MEETING                                          

MAY 27, 2009

 

 

Session 09-04 A Regular Meeting of the Port and Harbor Advisory Commission was called to order at 6:00 pm on May 27, 2009 by Chair Cathy Ulmer at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

PRESENT:                    COMMISSIONERS ULMER, HARTLEY, WEDIN, AND CARROLL

 

ABSENT:                      COMMISSIONERS HOGAN, VELSKO (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 April 22, 2009           

 

Chair Ulmer requested a motion to approve the minutes.

 

Commissioner Hartley noted on page 10 in the packet, line 10, that the motion made by Ulmer/Wrede should read Ulmer/Velsko.

 

There were no further amendments.

 

The amended 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 – May 2009

           

Port & Harbor Director Hawkins gave a brief summary on his monthly report. He reported that the City Council approved the Underway Policy with a few changes. The request for proposal on the Harbor Wi-Fi is still in the works. He attended the Chamber of Commerce monthly luncheon. Sean Martin attended representing the Charter Boat, Captain of the Hickory, and Don Lane. The topic was What Would Homer Be without a Harbor. The second cruise ship of the season in dock was the Silver Shadow. No additional ships are expected the rest of the season. The 2010 season Homer will have nine landings.

 

 

There was one response to the Spit Lease Request for Proposal, which will be later in the agenda for discussion. The repairs to the Deep Water Dock are in the process.

He responded to questions regarding the permitting for Home Run Oil and spillage contingency and ownership of the dock outside the harbor. He confirmed that the City owns the land and Petro Marine owns the rest, docks, tanks, etc. He explained the revenue amounts the City receives from a cruise ship docking is $450.00 landing fee and $2.20 per foot and a percentage of the head tax from the State of Alaska. On a foreign flag vessel, the crew cannot do the required security. A TWIC card is required to perform security checks. The harbor is ill prepared to accommodate this since there is no provision for people to stand around in the weather waiting to have their identification verified in response to a question from Commissioner Ulmer.

 

Commissioner Ulmer commented that the local businesses complain about making money and she saw a perfect opportunity to make money. She has not taken a cruise where at a landing they were not greeted by a “reception” committee for the passengers.

 

Commissioner Carroll related experience in southeast Alaska with respect to the cruise ships bringing their own souvenir shops, buses, etc. He also noted that one time following a ship there was a most awful stink and the ship had pumped its sewage since there was no one around at 4:00 a.m. He is not fond of having cruise ships in the harbor.

 

Dock arrivals for the cruise ships are scheduled through the Harbor office. It was noted that a business opportunity was available for someone interested in providing a security check service.

 

There was no further discussion.                                                                                                

 

1.     Budget Talk with Finance Director Regina Harville

 

Regina Harville stated she was going to be attending the next several meetings to get the commissioners familiar with the budget process. She will try to answer any questions they may have during her presentation. It was recommended for the commissioners to bring their copies of the budget to the next meeting.

 

Mrs. Harville first explained what some of the common terms were and how they affected the budget. She addressed depreciation line item on page C-27 of the budget. This is not a true cash amount; capital contributions are items purchased from state and federal grants, it is not actual money spent from the funds and it is recognized as a revenue item; change in net assets - if you pull out depreciations and capital contributions, which wash themselves out there is still a half a million dollar loss.

 

Page C-27 is one of the most important in the budget process.

 

Mrs. Harville explained transfers to reserves, fleet reserves, leave cash out bank line items on page C-33 in the budget, and noted the line item for administrative costs. She briefly explained the debt payment line item.

 

On page D-19, she explained the budgeted amount in comparison to the actual amount and what encumbered meant. These amounts are carried over for three-year period then have to be applied for again.

 

Port & Harbor Director Hawkins explained it as having a lump sum of money and then deduct projects from that amount. He used dredge spoils as an example.

 

These amounts are split between different funds and earning interest, which is considered income.

 

Page D-20 in the budget shows a detail of the expenditures for equipment.

 

On page A-16 in the budget it shows the percentages and amounts that are charged to the different funds. The amounts were determined using a study that was conducted a few years ago and it may be necessary to complete another study in the near future.

 

The total amount of overhead expenses allocated to Port & Harbor is $433, 236.00 out of a $3,319.223.00. These amounts are broken down based on work effort by each department.

 

She further explained where the numbers on the monthly reports are generated from the data entered into the accounting software sued by the finance department. These are not always accurate because at month’s end they may not have received all bills in a timely manner. All receipts and purchase orders are entered in to system. The process for approval and payment may seem like a lot of back and forth but they create great checks and balances.

 

She requested the commissioners to review their budgets and to write down questions and give them to Bryan or her, and she will have answers prepared for the next meeting. Her door is always open and will gladly meet one on one with the commissioners to discuss concerns and or answers their questions. The Port and Harbor is an Enterprise Fund and the commission should be more involved in the budget process.

 

She explained that it was not possible to get individual reports for sales taxes from the Borough. She will contact them to see what information she can obtained in response to questions by Commissioner Wedin.

                                   

There was a brief discussion on the general misconception that the Harbor is costing the City money, and the harbor taking over duties related to leases.    

 

Chair Ulmer thanked Mrs. Harville and looked forward to the next meeting.

 

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

            a.         Meeting Minutes for April 9, 2009 Regular Meeting and May 18, 2009 Special Meeting

 

Port and Harbor Director Hawkins informed the commissioners that there would be a joint worksession with the Economic Development Advisory Commission on the Lease Policy. This meeting is scheduled for June 1, 2009 at 6:00 p.m. in the Council Chambers.

 

He reported the status of Ocean Beauty and Snug Harbor. Ocean Beauty has packed up and left the Spit. They provide a valuable service, planning has voiced concerns regarding the buildings. A long-term lease would probably force them out. He feels strongly that they would be agreeable to a three or 5-year lease.

Commissioner Carroll recommended asking them what the City could do for them to encourage them to sign a lease.

 

Commissioner Ulmer felt they would be glad to entertain that conversation.

 

Commissioner Wedin suggested if the City was entertaining cruise ships then something could be done for these businesses.

 

Port and Harbor Director Hawkins reported that the fuel dock leases are still under review by the City Staff and Attorney.

 

There was no further discussion.

 

PUBLIC HEARING (3 minute time limit)

 

None.


 

PENDING BUSINESS

                                     

A.            Strategic Plan    

 

Chair Ulmer requested comments on the strategic plan as presented.

 

The commission approved of the strategic plan by consensus.

                                                                                     

B.            Draft Overslope Ordinance and Homer City Code 

 

The Commission reviewed the draft overslope ordinance and did not find any concerns as written. There was a brief discussion regarding parking in conjunction with overslope development.

 

HARTLEY/WEDIN - MOVED TO RECOMMEND THE DRAFT OVERSLOPE DEVELOPMENT ORDINANCE BE FORWARDED TO CITY COUNCIL FOR FINAL APPROVAL AS WRITTEN.

 

There was no discussion.

 

VOTE. YES. WEDIN, HARTLEY, ULMER, CARROLL.

 

Motion carried.

 

 

C.            Rescue 21 – Future plans Q & A

 

They were a no show.

 

There is no agreement in writing between Rescue 21 and the City. They are not paying moorage but they are paying for the shore power. It was agreed that if they performed 1-2 rescues a month it would be well worth the moorage. If the Quanah P is becoming derelict then not worth the free moorage.

 

The Commissioners recommended Port and Harbor Director Hawkins pursue a written agreement with Rescue 21, the Quanah P vessel and have an executed agreement by June 24, 2009.

 

There was no further discussion.

                                                                                                                                     

D.            Tariff Increases – Memo from City Manager Wrede dated May 21, 2009    

 

Chair Ulmer requested a motion to discuss.

 

Discussion ensued regarding the necessity to address this issue any further by the Commission. Comments were made by the commission regarding the rates in comparison to other harbors as being very reasonable; the appearance of the commission being a bunch of grousers; making sure from this point forward the policies are adhered to by council; and offer more opportunity for public input.

 

There was no further discussion.


 

NEW BUSINESS

A.            Review of Seldovia Village Tribe (SVT) Proposal for Lot 21 –

            Review and submit recommendations to Lease Committee.                                               

 

Port and Harbor Director Hawkins reported that the Lease Committee had a few concerns with the proposal submitted by the Seldovia Village Tribe (SVT) for Lot 21.

 

  1. Approach ramp design and location on the lot
  2. Proposed Shelter design and size
  3. Rate per Square Foot
  4. Annual Moorage Rate/Pricing
  5. Number of Employees
  6. Liability issues for the City
  7. Job Creation
  8. Overslope Development

 

The Lease Committee has requested Port & Harbor Commission recommendations.

 

The Commissioners reviewed the proposal drawings.

 

Port & Harbor Director Hawkins explained that the ramp will eventually be under direct ownership of the City and it should be built as the City would build it. He explained that although this would be an easier ascent for wheelchairs it presents a cut off to boat traffic. The second ramp is due to the uncertainty of the existing ramp handling the weight. He has not spoken to anyone since receiving the proposal. A brief discussion on having a wheelchair lift/ elevator would be a great asset but further liability. Further discussion regarding the proposed ramps ensued.

 

Discussion did include the plans by SVT for a visitor center on another location on the Spit and running a shuttle bus to the ferry location.

 

The commissioners did address the issue of overslope development for this project should be strongly encouraged. It would open up so many opportunities. It was agreed that this proposal was workable, and to ask what the City could do for Seldovia to assist them too. The commission did discuss some possible impact to smaller entities for transportation across the bay.

 

CARROLL/HARTLEY - MOVED TO RECOMMEND STAFF CONTINUE DISCUSSION REGARDING THE CONCERN PREVIOUSLY EXPRESSED DURING REVIEW BY THE LEASE COMMITTEE.

 

There was no further discussion.

 

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

B.            Election of Vice Chair

 

Chair Ulmer opened the floor for nominations.

 

Commissioner Wedin nominated John Velsko. Commissioner Carroll seconded the motion.

 

VOTE. YES. HARTLEY, ULMER, WEDIN, CARROLL

 

Motion carried.

 

 

C.            Discussion Item: Maintenance of Fish Dock

 

There was no discussion.

 

INFORMATIONAL MATERIALS

 

A.            Harbormaster’s Monthly Statistical Report for April 2009                                        

B.            Weekly Crane and 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.            Memorandum 09-XX to Planning Commission Re: Caretaker’s Residence

            dated May 1, 2009                                                                                              

I.             Memorandum 09-75 to City Council and City Manager Re:

            Deep Water Dock Buoy Repair                                                                             

J.             Letter to Petro Marine Services dated May 13, 2009 Re:

            Fuel Prices at the Port & Harbor                                                                         

K.            Letter from Petro Marine Services dated May 14, 2009 Re:

            Response to Letter from City Manager                                                                

 

 

There was no further discussion.

 

COMMENTS OF THE AUDIENCE

 

There were no comments.

 

COMMENTS OF THE CITY STAFF

 

Port and Harbor Director Hawkins stated that Lloyd Moore was retrofitting a dumpster to accommodate recycling materials. He then shared the results from the Feasibility Study for the current harbor. It is annually predicted to generate $75 million locally and $95 million peninsula wide. This is on a $3 million dollar budget. He told the Commissioners to keep tabs on the reserves when it is down to $1 million that is very slim. He stated that money was approved to perform the dock inspections.

 

Deputy City Clerk Krause commented it was a good meeting. She requested clarification on what zincs were.

 

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

 

None.

 

COMMENTS OF THE CHAIR

 

Chair Ulmer was glad to have the budget training and appreciated the openness and availability of information. She was so happy to see the overslope ordinance that has been 10 years in the making. She was proud of the staff and the commission.


 

COMMENTS OF THE COMMISSION

 

Commissioner Wedin wanted to thank who ever got the additional dumpster. He was wondering when the recycling dumpster would be available. He noted that there was talk at the borough regarding recycling efforts. He requested clarification on hardship with regards to derelict vessels. He is happy to be here.

 

Commissioner Carroll commented on an alternate ramp design for the ferry.

 

Commissioner Hartley thanked the Chair for affecting a good meeting and wanted to thank Commissioner Velsko for serving as Vice Chair. The ferry will generate business for Seldovia and offer alternative for shipping purchases.

 

ADJOURN

 

There being no further business before the Port and Harbor Advisory Commission Chair Kilcher adjourned the meeting at 8:20 p.m. The next regular meeting is scheduled for 6:00 p.m. on June 24, 2009 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

 

 

                                                           

Renee Krause, Deputy City Clerk I

 

 

Approved: