Randy Tetzlaff, Director of Planning and Development for the City, wanted to discuss the new Floodplain mapping issues for the marina and city. He said that according to the new map, the marina is actually in the floodplain due the wave action. He said that included in the floodplain is North Jackson Street around Newport, to the NW corner of the North Slip, to the West Slip, and everything around it. He said that Ozaukee County was one of the first to be remapped. He said that the maps are preliminary, and the city has 90 days to object. If the city doesn’t make it within the 90 days allotted, the city is stuck with the new map for ten years. So it is imperative to get started by hiring Baird to do the study and analysis of the area now included in the floodplain and to come up with reasons why the marina and other areas in the city should not be included in the floodplain. He is not sure how much it will cost, but he said that it could cost up to $5000.00 and the city wants the marina to pay the majority of the money since the marina is the most affected by the proposal. If the state and the DNR approve the changes, then it will go to FEMA for approval, and hopefully the marina will not be included.

Randy said that the problem with being in the floodplain is that if the marina would want to make any modifications or add on to any of the buildings would have to be built well above all existing structures. The marina would also have to carry flood insurance then.

Commissioner Gruen said that the marina is going to have to spend the money to prove the obvious. He questioned why all the wave studies done when the marina was built, aren’t enough to prove why the marina should not be in the floodplain. Randy said that they do plan on using those studies to aid in the analysis process.

The Commission feels that the city should be solely responsible for paying Baird the $5000.00 for the study. Commissioner Gruen said that it is a city problem, not just a marina problem. They feel that the marina shouldn’t be robbed to pay for this. Perhaps BID would pay for it since it affects part of the downtown. Commissioner Jushka agrees that it should be paid entirely by the city. Pete Jushka made a motion to recommend to the council that the city should finance the entire project regarding the floodplain mapping issue. Jerry Baganz seconded. Motion Carried.

Harbormaster Cherny said that he has increased the rates by 3%, the cost of living. Life Insurance, wages, water and sewer all were increased by 3%. Gas went up 20%. He also is proposing a 3% increase in slip fees for the marina tenants. He said according to the slip fee comparison chart attached to the agenda, the marina will remain competitive with a 3% increase for next year. It was argued that the marina not increase rates for 2007 due to the fact that the marina is losing tenants to other marinas such as Sheboygan. The slip fees are comparable, but Sheboygan includes more amenities in their slip fee. They include access to the pool and Jacuzzi, dock boxes, and cable TV. They also have floating piers, which have become more popular with the low water problems now. The Harbor Commission decided to support the 3% increase for this year and will look at the impact, if any, for next year.

Harbormaster Cherny is also proposing an increase in transient fees for 2007. Per the guest slip rate chart provided, he said that the marina is very competitive, and will continue to be even with the increase. He would like to raise the rates to $1.25 per foot, plus tax, making it approximately $1.32 per foot. He said that right now fees are at approximately $1.20 per foot plus tax. The Commission felt that Harbormaster Cherny was proposing a fair increase.

Harbormaster Cherny said that is all he has for budget requests at this time. He mentioned that there may be a special meeting at the end of the month, if the budget needs to be approved before the next meeting in October. He will keep the Commission informed.

Harbormaster Cherny said that the Fifth Pier has been completed. He said that the decking is better quality than what was originally bid, at no extra cost. Some tenants have already moved to the fifth pier and just love it.

He wanted to mention that he has been considering the possibility of converting our fixed piers to floating docks, sometime in the future. The main pier would stay, and there would be steps down to the floating finger piers. It was questioned about handicap access, and Harbormaster Cherny said that there are several floating docks with handicap access, as well as the launch ramps.

Harbormaster Cherny said that he doesn’t have much to report for the month, but he did want to mention that the Beluga Ship will be departing the coal dock with in the week. They have just a few more containers to unload he said.

He also mentioned that Ralph Ripple, who is a tenant at the marina and also owns Diver’s Delight charter service, donated an Anchor that they believe came off a coal ship, to the marina. He said that the marina has it displayed at the south end of the marina trailer parking lot.

City Administrator Grams said that the revenue is down in transients and daily launches this year. Harbormaster Cherny added that the marina is down 622 daily launches compared to this time last year, but up 10 season launches. He said that fuel sales are also down this year compared to last with gasoline sales at 63,000 gallons sold compared to 75,000 gallons sold this time last year. Diesel sales are also down with 56,000 gallons sold this year and 59,000 gallons sold this time last year. Increase in fuel prices this year does put us up in revenue compared to last year.

Harbormaster Cherny said that when the season starts out slow, it is hard to make up for it later. He said that the marina has 3 more big weekends, and hopes to make up for it then.

Harbormaster Cherny said that the 5^th Pier is entirely connected together. Tomorrow afternoon the hope to drill in the pilings. Then, Greisch can start with the plumbing work and Wester can finish up the electrical. By next week they hope to have the pier fully operational. Harbormaster Cherny said that there is roughly 100 feet of fairway between piers 4 and 5. There is at least 4-8 feet of water depth in each slip, so they should be able to accommodate both sail and power boats. The ramp has been built and is in place, and the gate will be built over winter and installed in spring.

Harbormaster Cherny said that the marina has been busy, even though the numbers are down. He mentioned that the fuel pier sold an astounding $20,000.00 in just credit card fuel sales in just one day! He hopes that this may be a sign that things are looking up as far as business is concerned.

He wanted to bring to the Commission’s attention that the water is down a foot compared to where it was last year at this time, but weeds have not become a problem as of yet. He said that we did have some algae die off, but that is about it.

City Administrator Grams did mention to the Commission the possibility of helping fund the rescue boat again next year. Commissioner Jushka also mentioned that the National Weather Service website for the Port Washington Marina is now up and running.

Pete Jushka made a motion to adjourn the meeting at 7:32 p.m. and Jerry Baganz seconded. Motion carried.

City Administrator Grams wanted to mention to the Commission about the status of the North Slip restrooms. He said that even though there were some unforeseen delays due to electrical wiring and weather, the project was put on hold for a week or so. They are hoping to have them done for the Fourth of July. He said that the marina will tend to the restrooms in summer and that Park & Rec will take care of the cleaning in winter. Harbormaster Cherny said that the restrooms will be locked at 10pm every night just like Park & Recs’ bathrooms and marina bathrooms are.

Pete Jushka made a motion to adjourn the meeting at 7:17 p.m. and Ralph Hess seconded. Motion carried.

2. Approve Minutes Of Previous Meeting

3. Election Of Chairman And Vice Chairman

Chairman Jerry Gruen opened nominations for Chairman and Jerry Baganz nominated Jerry Gruen as Chairman and was seconded by Pete Jushka. Pete Jushka made a motion to close nominations and was seconded by Jerry Baganz. Motion carried. Jerry Gruen opened nominations for Vice Chairman and Pete Jushka nominated Frank Metz as Vice Chairman and was seconded by Ralph Hess. Pete Jushka made a motion to close nominations and Jerry Baganz seconded. Motion carried.

City Administrator Mark Grams said that the there still isn’t much to report for April. Revenue is still coming in and there have been minimal expenditures. He and Harbormaster Cherny said that there should be something to report next month as the season gets busier.

Mike Speas, a local developer, wanted to inform the Harbor Commission about plans that he and his partners have about building and installing 11 floating slips on the south side of the west slip. He said that he contacted the DNR and they will be drafting a letter stating that due to his riparian rights, he will be able to install slips based on a "reasonable use formula". Mike Speas and his partners were originally going to apply for a small marina permit until they heard about the extensive application process. So they decided to go ahead with the 11 floating slips allowed by the reasonable use formula. The commission said that they would like to see a copy of this letter from the DNR stating that he has the right to put these slips in, since just a couple of years ago the DNR had drafted letters stating the opposite. Commissioner Gruen stated that because of the letters they received from the DNR a few years ago stating that putting slips in the west slip violates the lake bed grant, has him very concerned. He said that one false step on our part and the lake bed grant goes back to the state of Wisconsin. He said that he has a hard time believing that because the partners have riparian rights to the water that they are able to build a small marina of sorts. Harbormaster Cherny questioned whether the marina could build slips in the west slip then, since the city holds the lakebed grant. City Administrator Grams said that you can’t impede on his riparian rights, because they supersede the lakebed grant. Commission member Hess questioned whether they were going to do anything to protect that area since just a few weeks prior he had seen 3-4 foot waves in the west slip. Mike Speas said that they have been watching the area for years and see no danger or need to build any form of protective structure. Commissioner Gruen also questioned what the tax implications may be. Mike Speas just said that all he is trying to do is bring a little vitality to the west slip area. He also said that as of now, the Harborside is not interested in putting slips on the north side of the west slip.

City Administrator Grams said that a couple of weeks ago a food vendor was heard by the finance committee about wanting to set up a hot dog cart down by the marina. They would like to stay in one spot. He said that as it reads now, the City code allows vendors on city property, but they must move their carts every fifteen minutes. He said that he does have some concerns about allowing them. These vendors, he said, have indicated that they would like to permanently set up shop down at the marina. Once you allow one, where does it end he questioned. He said that he is also concerned as to what effect these vendors would have on local businesses. Member Fortunanto questioned why it can’t be limited to just local businesses that have vendor carts at the marina. City Administrator Grams said that you can’t discriminate against outside businesses, everyone has the same right. Harbormaster Cherny said that the marina doesn’t have room for vendor carts. Parking is already limited with not enough spaces for all of our tenants to park. Commission members agree that stationary carts should not be allowed, but moving vendors may be considered if the city would create a limit as to how many carts may get permits.

City Administrator Grams said that the City Attorney has met with the attorney and owner of Newport Shores to develop an agreement regarding the 5^th pier project. According to #9 of the agreement, favorable recommendation needs to be made by the City’s Harbor Commission and Plan commission to the Common Council. According to the agreement, Newport shores will receive the use of two of the floating piers. They will pay a nominal fee and have to abide by all rules and regulations of the marina. They will not be able to lease, rent or sell the two slips on Pier 5. They would still like the right to put in a pier of their own if and when the lake level would ever go up. Due to riparian rights, they will be able to put in a pier as long as it doesn’t interfere with Pier 5 and upon doing so they give up their rights to the two slips on Pier 5. It was negotiated as to what would be in the agreement. If there should be any changes, they will bring it back to the Harbor Commission. Frank Metz made a motion to recommend to the Council approval of said agreement and Ralph Hess seconded the motion. Motion carried.

Harbormaster Cherny said that Dan Adams, from Atlantic Meeco, has issued a shop order for the building of the slips. They believe that the delivery date will be sometime on or around July 4^th. Once they have installed them, then Greisch can install the plumbing and Wester can install the electric.

City Administrator Grams said that the City attorney along with city staff, are working on an ordinance that would restrict the consumption of alcoholic beverages in areas of the marina. This would affect tenants and transients as well as the general public. Concerns have arisen in the last couple of years with some unruly shore fisherman in spring and fall. As the law reads now, tenants and transients could have received tickets for drinking in public ways, but police have looked the other way, unless there was a problem. The current proposal would allow drinking at the marina from May 1^st to October 1^st in only certain areas of the marina being the piers and slips. As the new proposal reads, it does not allow drinking of wine, so that will need to be added to the proposal. Frank Metz made a motion to approve the ordinance to allow alcoholic beverages May 1^st to October 1^st in certain areas of the marina as well as a provision for wine. Pete Jushka seconded the motion. Motion carried.

City Administrator Grams said that FEMA put together new maps showing where the floodplain and flood ways are for the city. The marina buildings are now located in the floodplain and the flood way area along with other city buildings that were not in that area on previous maps. That would mean that if the marina would ever want to add onto to one of the buildings, they have to be built at a minimum of 2 feet higher than the existing structures. City officials will be working with FEMA to see if we can be taken out of the flood way.

Harbormaster Cherny wanted to bring to the commission’s attention a letter that was written to the Ozaukee Press criticizing the marina. Harbormaster Cherny said that he met with the couple who wrote the letter today and walked with them out to their slip to address their concerns. He mentioned to them that he wished that they would have come to him directly with their concerns, instead of writing a letter to the Press. They parted company both being happy with what they had discussed and the solutions that were made. The couple plans on writing a retraction letter to the Press apologizing for criticizing the marina.

Harbormaster Cherny informed the commission that Jerry the security guard at the marina for the last number of years, won’t be returning to work this year. He has hired Dennis Klicker to fill his position.

Two ships, from Beluga Company, will be bringing the materials for the second phase of the power plant construction sometime between August and September. Each ship is approximately 500 feet long.

He said that the marina purchased gasoline on Saturday and the new price per gallon of 93 octane gasoline at the fuel pier will be $3.18 per gallon, which, he says, isn’t too far from what they charge at the pump in town. The marina continues to remain competitive with its fuel prices. He had heard that down in Winthrop Harbor, they are charging $3.80 per gallon.

Harbormaster Cherny said that Lakeland Boating did a wonderful 7 page article on Port Washington and the marina in their May 2006 issue. Port Washington has become "the" place to come in the last couple of years, and the popularity just continues to grow!

City Administrator Grams and Harbormaster Cherny informed the commission of most of the summers up coming events at the marina. Events at the marina include Pirate Festival coming up the first weekend in June. The Disabled Vets fish outing June 21^st. Double-handed sailboat race June 22^nd. GLSF fishing derby July1-3^rd. GLMS and Cruisers Yachts Rendezvous July 7-9^th. Fish Day July 15^th. Lions Derby July 28-30^th. Clipper Cup sailboat race August 11^th, and Maritime Heritage Festival August 12-13^th.

Jerry Gruen also mentioned to the commission that he did e-mail the drafted letter regarding the TPA Amendment that he left for the members to look over, to Senator Grothman. He said as we all know, the bill did not pass at the local level anyway, so the marina doesn’t have to worry about restricting the amount of revenue collected.

2. Approve Minutes Of Previous Meeting

Commissioner Hess pointed out a correction that should be made to minutes #10. Under number ten he is listed as voting aye to a motion when he was not in attendance at the meeting. Frank Metz made a motion to approve the minutes as corrected and Jerry Baganz seconded. Motion carried.

3. Monthly Financial Report

City Administrator Mark Grams said that it is still early in the year. Revenue has been good and expenditures have been down.

City Administrator Grams said that they did receive the revised numbers from Atlantic Meeco. The Common Council approved to go forward with the revised bid for the project. The revised numbers show a 6.2% increase from last year. The total project bid for 2006 is now $183,351.00, which is within the limit, so the project will not have to be re-bid and the city can accept the new numbers as a change order. He mentioned that the only other bidder was Skipper Buds with a projected cost of $198,000.00, so Atlantic Meeco’s bid is still the lesser of the two even with the increase. The city has sent the contracts to Atlantic Meeco. Regarding negotiations with John from Newport Shores, he hopes that this week everything will be resolved. Once everything is resolved and the city receives the signed contracts from Atlantic Meeco, the project will be underway. Harbormaster Cherny added that once they receive the okay to go ahead with the project, it should only take Atlantic Meeco seven weeks to construct the piers. He said that hopefully the piers will be in sometime this summer.

Commissioner Gruen said that he did raise some concerns to the City Attorney about giving Newport Shores’ two slips that would run with his land, if that would violate the Lake Bed Grant or not. City Administrator Grams said that they will have to pay a nominal fee as well as follow the rules and regulations of the marina.

Harbormaster Cherny said that he would like the listed individuals approved for hire. Frank Metz made a motion to approve the hiring of new seasonal employees and Ralph Hess seconded. Motion carried.

City Administrator Grams said that the Taxpayer Protection Amendment would restrict the amount of money that can be taken in based on inflation rate. This means that the marina’s revenue can be restricted by the amount collected. So if the marina has a surplus, that revenue would go back to the taxpayers rather than into the reserve fund for future projects or marina repairs. He mentioned that he had sat down with Senator Glenn Grothman, an author of the TPA, and voiced his concerns as to the negative effect this legislature will have on the marina. Senator Grothman said that he would see about making a change to exclude the marina, but City Administrator Grams has yet to see anything in writing. He warned that if this, in its present form, goes into effect, that it could have a maximum effect on the marina. He said that they are to go into session in two weeks. He said that under this proposed legislation, every time you would want to borrow money, it would have to go to referendum. He said that Moody’s, the city’s investment service, says that you need to have a reserve fund balance of 10% of your budget. They see several problems with this bill. City Administrator Grams said that the marina in the end will be penalized for doing a great job financially.

City Administrator Grams said that this legislature doesn’t take into consideration a lot of the negative effects that this can have on a municipality. He hopes that a clause can be added to exclude the marina from the bill.

Harbormaster Cherny said that the marina has only three open slips left for the season and anticipates that they will be rented soon. He is planning on having all the water on at the marina before the weekend. The water lever is still down one and a half feet, be he said that with having the marina dredged a couple of years ago, the low water is not causing a problem. He also suggested having the May meeting at the Marina.

2. Approve Minutes Of Previous Meeting

3. Monthly Financial Report

City Administrator Mark Grams said that there wasn’t much to report for February.

Harbormaster Cherny said that there have been numerous requests from our tenants to add additional charter slips. Two of the tenants requesting charter slips, Stu Natale slip NS10 and Bart Mattice slip NS13, are already in slips in the North Slip area between existing charters. They just ask that their slips be changed to charter slips. He said that there is also one additional slip that is open in the North Slip and would like to make that a charter slip. Commission member Metz questioned whether there was a ruling or not regulating the number of charter slips allowed in that area. Commission member Baganz added that he thought the y had to have a certain number of slips available in case of emergency, but that is why the marina has all the wall space available in the North Slip. The only other question the commission had was whether this would upset and take away business from the other charter captains. Stu Natale added that he had a letter signed by the Charter Captain’s Association welcoming him to become a charter. The commission agreed with Harbormaster Cherny that the additional charter slips should be added since there seems to be no opposition from anyone.

Harbormaster Cherny mentioned that the marina has 7 slips open as of right now. One of those slips is open in the North Slip and will become a charter slip, so that leaves 6 slips open in the main marina. Four 36’ slips and two 40’ slips. We had 31 open slips and filled 25 of them with people from the waiting list so far. He feels that the remaining six slips will be rented before the start of the season. He also informed the commission that they revamped the floating piers with new factory made floats, getting rid of the barrels that were previously used.

Harbormaster Cherny said that there isn’t much to report. The ice-eaters have only been run for a couple of weeks this year, so electric costs should be down this year. He said that the power plant has been running more frequently helping to keep the marina free of ice. He also mentioned that the pump in the North Slip seems to be doing its job and has helped keep that area free of ice as well. He also mentioned that the lake level is still down 1.8 feet from last year’s high.