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Home My WebLink About1979-06-12 Harbor Commission SummaryKENAI HARBQR COMMISS~~N REGULAR MEETING JUNE 12, 1919 1:00 PM - KE~AI PUBLIC SAFETY BUILDING PRESIDENT PRO TEMPORE BQB PETERKIN PRESIDING A /~ P -1 /1 A PLEDGE OF ALLEGIANCE ~ OATH OF OFFICE A ROLL CALL ~GENDA APPROVAL 6 MINUTES 1 Minutes of regu~ar meeting May 22, 1919 C OLD BUSINESS 1 Leases of river property D NEW BUSINESS 1 Coast Guard presentation 2 Corps of Engineers presentation 3 Presentation of Tidelands Ordinance from Council of the City of Kenai , ~ ~~, ~ • s ~ o ~'~•r 5 ..~.., , . ~y ~ ~ ~,,, 1 - . tr.~ , r ~ ~ r t 4. , j . , . . ~ . . F # •;.r .. ~ . ,•y ~~. ~ ~ q .1,,.. ~ , ~ ~,:~ . . . . . . . ~ . . , I".} ~~ ' .,f ~yf ~..+~ ( ` y r t \,r .«' ~ ~...~ ! I,.l . ~ ` ~ ..~ ,f ~, ~:.. . .~. ~". ,~ ~ ~ ~ . ,~+~ ~' ~`~ t k" , , e ~' ~ j ~ + ' . , y ;~,~!`{ t ~i'•~ ~ ,` ""4... ~.v ',~~t ~ ~... tF ~'i ~ J . ~ t: ~. ~~ a' - .. ~'' ~ .~ . . 'sM .,..~i "g w ,qA, l~ ~. , {r..~a,. . . 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'.~~' r + . . ~ . .h~- ~y; , "±`~`{~~ ~w Y"' ~ .i ~ ~ .F, .~ ~ ~ ~~1 ~.: ~4 ' ' ~ .. ~~ . ~ {. ~ . L.~ L .y~~1 . Y. 3 'k , ~ . ., ~~~~., v .. ~ ~ .. m , .. ~ ~ `, ~T"'`~, .. n ~+~ '~ . -..~ir , ~ . , , ~~ .~;,~., i• ~ ,..;~ - ~ ~ ! ~' ,. y , - . , . . . . .. . . .. ~ ' ~ . r~z~ . ~- : r ~ . , _ ,a ...w, n~"c K~~ ~ ~. . ~ ~ ~ ~~ $ ~~~ ~ ~ C~ ~ - ~i ~~ ~ ~~ ~0 ~ ~~ E~~ ~ y ~ '~o ~[t io t~~jvn~ t~e~c~ prr~rnt~ ~fja1C coint~ ~recting: . WHER~AS, a~ertificate of the L~nd Of~ic~ at Anchorage, A~,~aska, is now deposited in the Bureau of Lan~ Management, w~-ereby it aPPears :'* that full paymenC has been made by the City df Kenai, Alaska, accord- ` : ing ~o the p~ovi~ions o~ Che Act ot Con~ress of June 14, 1926 (44 St.aC. 741; 43 U. 5. C. 869}, as amended Dy ~he Ac~s of June 4, 1954 `; (68 StaC. 173) and September 2I, 1959 (~3 StaC. 571), for the follow- ing descxibed land: Seward Meridian, Alaska. ~r;: : }~~., ~: f~ ~~ ~ . - ~ ~ f f:~.. ~'.r~ • ~ . T. 5 N., R. 11 W., ~~.tl~~~" ~' ~ , Sec. 9, Lat 3. . The area described contains 11.2~ acres, accord~ng to the ~" Official P1at Qf the Survey of the sai~ Land, on file in the Bureau ` af Land Managem~nt: :. ; • N4W KN~W YE, That the UNITED STATES OF AMERIGA, in canside~a- - , ; tion ot the premi.ses, and i,n conformity w~,th the said A~ts of .~ , Congress, I~AS GIVEN AIr'D GRANTED and by the~e present~ DOES GIVE AND ~~,; GRANT unto the said City of Kenai, Alaska, the Tract o~ Land above ~ µ describ~d, ~or small baat Ianding faci.litX purposes only; TO HAVE ~ ~ ~.~ ~~~~N AND T4 HOL~ the same, together with all the rights, privi~eges, immunities, and appurten~ances, af ~rhatsoever nature, thereunto be• ~ , 1,onging, unto the sai.d City o~ Kenai, A~.aska, and to its successors ; forever, subject, h~wever, ta tihe followi.ng zeservations, conditions, .and limitatians: • Sub~ect Co any vested and accrued water r~ghts for mining, agricult•ural, manufacturing, or other purposes, and rights to ditches . d~. / ~'~''~,(~°. ~p . (0 ~ J ~ "~,~, ,~ ~"'~ar ~j;~y , ~ ~ M- Patent Numbci ....:~ ~ ~~!. ~ .:~ ~+ ~ o, i. wvc~MwrNr rRirn~ra ornc[ 16--b12~7-4 -. . . . ~ , ~k F` , ' _ .A , . .. .. . ~' ~ , , . . , , ~,~, t ~ ~. . § ~ #--lU~~ ~~`An~horage U3~26)8 c~~r~~ . , _~..._ __ . ;. ,. `,', ~ , ;; ,< ~ 8(K,1K J ~.~c1~; p'AGF ~ ~3 ~ ~ , ; ~ ~'r.~~ai Re~cartl~ng D~stri~t ` and reservoirs used in co~~ecCion with such water rights, as may be ' ~ recog~#~~ed and acknowiedged by the local cusCams, laws, and decisions ~ af courta, . ~ ;„ . Th~xe ~s rese=ved from t~~ land hereby gxanted, a right of way ;; , ther~an ~~r diCches or canals conatructed ay the authority of th~ f , ~'~' ~ \ UA~ted States. There is a~.so reserved to the United States, all P ~. mineral deposits in the land above d~s~ribed, toge~her with the : ~ ~ rig~~ ro mi~:e and remove the same, under applicable laws and reg,ul~a- ~ t3,ons t•o be established by the Secreeary of the In~erior. : Prov~ded, tihat, if the pa~ent~e or its S1lCCES80~ attempts to ~ transfer t~Cle ta or control vver the lands ta another ar the lands a~e devat~ed to a use other than tha~ far which the lands w~re ~. ; coAVeyed, w~,thaut the consent o~ the Secretary af the ~nCeriar o~ ' , his delegate, or prohibits or zestricts, dfrectly or indirectly, o~ permits its agents, emplayees, contractors, or subcantractors ~ t . (inc].udir~g without limitation, Iesse~s, subl~ssees, and permittees) ~ r ~ to prohib~.t or restrict, directly or fr~directly, the use of any ; , ; ~ ~ ~ ~ part of the patented land~ or any of the facili~ies thereon by any , . . - ~ . ,: 4~'' ' r ~ .. ~:l ~ p~rson because of such person's rac~, creed, ~olor, or national ,,~; ; origin, title shall revert ta the United States. .~ ~~ . •.....~.~„~ ~ RFC~~ ED • F~l ~D ; ~~' aE c. or~t. ; . ~ ~ ~ DAtE~ ` ~O 19 ~ ~ , ~ 11M ~,~ ~ ~,~ IN fiESTIf~ONY IhtN~REQF, the undersigne~ o~icer of the BuGeau of land ~ ~ R,~~„~~ ~'` I~anagement, in accar~ance with sectiort 1 of the act of June 1 l, . ~, c~ . '~ ,t ~dt-«, 1948 {62 Stat., 4 T6, 43 U, S. C, sec, 15), has, ir~ the name of th~ ~ ~ _____1~ .~.-G-, ~,.. U~ited States, caused these letters to be made Patent, and the Sea~ ~ ~ q ~ ~.___~_.____..,_ of the 6areau to be hereunto a~flxed, . ; s , ~~j. ~7 G1YE1~ under my bar~d, in the District of Columbia, the TWENTY- ~ ~;/ : ( S~AL) SEVENTH day af ~ JUN~ in the year of ~` ~~ ~ ~ our ~ord one thousand nine hundred and $ IXTY - TWO .; ~ ~ : ; ~ ~nd af the Independence of the United States the one hundred and . E~GHTY-SIX~H. ~ ': ~ For the Die~ctor, Bureau oi land Mana~ement~ ~ r ~ ~ ~ , ` ~ ~~ ~Q` ~ ~/ ~ B G ~ ~ / ~ ~ . F : ~~. •-'`"' . ~ ~ . __ ... ~ .._ . .._ ~ ._.... , ., . . ~ ' ,~ " ~. .~.~~ . _.. _ .____ . Chief, Patents S ion~ ~ ,., ; RECORD OF PAT~NTS; Patent Number ._...~,,.~`~~:~:.,J+~ Y. /. {OMt11MMENT /N.IN?1N0 01'IIC[ lA^-4}~9M~ 2 REGCiL~R MEEfi~NG KE1~~I H~RBQ~ COMMI~SION 1:00 Pr~ K~N~4I PUQL~C 5AFETY 6UILDIN~ T~IESD~Y, JUNE l~, 1979 PRESIDEidT PRQ TEMPaRE ~p8 P~TERKII~ PRES~D~NG 4ATH Q~ OF~'ICE . The a~th af 4ff~ce was ~dm~n~ster~d by qdm~n~str~at~~re ~ssis~ant ~ink~ Wti~i1 t~ r~embers Cheste~ Cone, Bob Peterkin, Bob Tepp and Tom Wag~ner A ROLL CALL ~resent ~ Chester C~ne, John ~i~~ ~~ams ,~ob Peter~ki n, B~~ ~'epp~~ Tom W~goner ~ ~nd Ex ~~~ic~Q members Council~om~n Betty G~rtcl~ and l~ayor Vincent Q'~ei11y Y„ Rbsent; Tpr~ ~cke~~~r _ _ AGENQ~ APPROVAl, ~~r~a~; Tom 4~~agc~ner ~o~red, s~conded b,~ 6ob Tepp~ ti~at the agenda be ~al tered to p~esen~ the Co~ s t Gc~a rd a nd Co~^ps o~ Eng ~ nee~s ~^~presen~at i~es bef ore the r~ ~re~ property 1 eas~s, . 6 MINUTE~ The spp11 ing of Tom ~l~~on~~~s name was ca~^~rect~d ~nd the m~nutes were apprvved as co~~ected4 C NEW BU~II~ESS , 1 Steye ~pa~^dman of ~he Arm,~ Corps af Eng~~neers spoke, g~y~na s~me backgraund af the Corps ` regulator~y ~urisdict~Qn, Tl~ere a~e th~ee 1 a~~s tha t grant the CQ~^ps juri sdi cti on o1re~^ the wate~^s i n Al aska, but one af these dea l s~-~ th oceans only and i~s r~ot o~ o~on~er~~ to the Harbo~^ C~mr~~ ss i on • a the other ts~a 1~ws ? M~ Bo~~^dm~n st~ted ~ at~e; . 1~ Sec~io~ t~n af the Riyers and Harbors Act of 1899 ~pecify~ng any work that di~ecti~ ~ffects navig~ble capa~~ty of ar~y n~vigab7e w~ters must have Cor s ap r~va1~ _ P p 2~ Sec~ian 4Q4 of the ~1e~n Wate~^ Act is the most widely l~nown,A~t:~ .~:Thi;s is art of . . . . . . p a 1912 l aw dea~1 ~ ng w~ th th~ d~ sposal of dred~ed or~ fi i l mater~ al ~ nto any water of the United ~tates, ~ncluding ocean, s~a, riv~r o~^ wet1ands that ~s nav1 at1onal. In 9 1975some environm~ntal groups sued the Environmenta~ Pratection Agency and the Car~~s to f ot^ce th~m ~o ~ ncl ude a l l we~l ands . The Corps then taok ~ these areas f orced uRon them by a ph~sing methQd. One yedr the area included a11 nayiqable waters, the next year the tr~but~ries of th~se w~ter~ and the third year ail.water adjacent ta the tr~ bu~tar~ es' In 19.77 th~ CI ~an Wat~r AGt w~s aga~ n modi f i ed so as tQ ~nclude a~1 water~~ ~ack to their ~ource, . . . . . . . . . . . . .:.~..;i:+ ~ ... . • _ ~,~ ~ ...,', . ,. ' - . ~~ " , . ~ :,~'.n ., ~.:, ~ . ~ ..~. _ ,:~~/:.. i...~.:.. ....:. . - • e ":- ....4:.+wb.;.iw . •4,_..:.. .. '...:~..'~. ..n-.~, .~n.. ~u.t:.•~.4+L.~CFyw~YA.Vw4JYlI9MaiY~~tiY~~MMLN. • ~ ~ 1~u~1 ~ . ~1 ~ M f . • ~ ' ' ' K~NAI H~~~OR COMP~~ISSION REGULAR MEETING JUN~ 12, 1919 pa~e 2 . 1'he Kenai River is navigable and Mas been added in the stages described above. The Carps' j uri ~di cti on ncaw goes to the termi nat~ an of I~ena i Lake. Many bel i eve t~i s~ct ~as i nstigated i n 1918 ~ but the fou'nda~i o~ fvr i t dates from the Wetl ands Act af 1915; the Corps simply ~a~ on~y just begun to act on this au~hority, Mr 6oardman added. In answer~ ta the rhetor~cai questi~n of what work can be performed, Mr Boardman outlined same of the various agencies and their areas of conc~rn as weil as what tne C~rps itseif exami~es. The Corps has jurisdictlon ~o revTew work cav~r~ng a~yriad o~ safety, econamics, w~ldlife, wa~~r quality and so or~,factors, a full 1$ ~ac~ars. Th~ Corps revi~ws proposals, but r~ust ask ather agencies and individuals whet~er or not the work is in the public interest. The Corps mus~ make public notices for 30 days with t~e Environrnental Protection ~gency, US Fish and ~1ild~ife, plus var~ous State ag~ncies. Th~ C1ean 4~ater Act is an EPA Ac~ with vniy Section 404, a~ outl~ined above, inWOlving the Secretary of the Army and, as a consequence, ~he Army ~orp~ of Engineers. The o~~er a~~~encies can veto a proposal also, far instanc~, the EPA is the single au~hority in fill mater~al. From the I~enai Riv~r mouth ta the br~dge, there are many, many ager~c~es who are doub~y concerned, a1 ong with the publ i c, Mr Baa~^d~nan sai d, to see whether or not ~~ that partic~~ar work wi]1 hurt the ~isheries. The first 1.~ miles are very praductiv~. fihe Cvrps has its 18 fact~ars, and then notifies the adjacent propert~ owners concerning the develapment to try to determine if t~e negat~ve ~ffects of devel c~pmen~ wi l 1 averri de the posi ~~ ve. - Many other agenc~ es ~a .~ .~a n~n~ e~~ tv~_thi nk th~t a~ ~ . . . . ~ ---.-~.--,-.,.-- :. ..~....., de~vel opm~nt w~ 11 ha~re a detr~m~ntal effe~t on t~e f i sher~ es. Locat~ or~ w~ 11 have ^ a lot of i~port tQ determine whether or not the perm~t will be approved. QUESTIQNS/ANSI~ERS/CQMi'~ENT~ ~The.Commiss~oners and the audience asked questi~ns of Mr 8oardman and made the fol l owi ng cvmrnent~ f Mr Wa 1 do Co,~l e s~~ted that no f i s~ spawned -i n the f i rst 12 ~m~ 1 es of the ri ver; only ., hool ~ gan sp~wn ~ r~ that are~. The mud come~~ i r~ f rom the i nl et, not dowr~ from the rivers and there are no critica1 fish habita~s in the fiirst six miles of the river. Ci ty Nlanager I~i se asked i f the satura~ti on of the mouth of the ri ver by bvats had been prajected, l~r Boardma~ re~ponded, s~ying that he did not think ther~ had yet been a study dane on this. The silt and erosion ~af the rive~ banks really makes the channel chdnge rapid~y, Mr~~ Ruby Coy1 e n~oted th~ r~ecess~~y ~ of~~ the baats:: ha~~ng _ t~. :l~ower. al ~ their gear in order to pass u~der the bridge, The original p1ans the ~orps had showed ~he br~i d~e ~t a much hi gi~er a 1 ~ i tude, ~ ~ ~ : . - . . _ ~ -~ Mr ~ili Breck, financial consultant for K~nai Harbor Development, asked that the Corps cor~nent on the permitslplans Kenai Harbor Deve1opment is processing with the Cor~s. ~lr Breck stated that th~s corporation was p~anning a 426 boat stall harbor with an entrance so placed that it would large1y be self cleaning. There will be space w~thin the harbor for processing plan~s, repair shops, harbormaster ~and recreatianal use~. TMe dock wi11 be sol~d fill, using same of the soil, which i~ silty cl~y, that will be du~ f~om the harbor area. ~. ~w- ) ,` , , y ~ , . K~NA I NAREiOR COMM I SS I ON REGULfiR MEETING, JUNE 12, 19~9 ~ Pag~ 3 . . ,~; . Councilwoman Glick questioned the adVisibil~ty o~ using th~s sQ~'1 s~nce the en ineer's report an i~ stated that it was ver~ aoor Qu~lity. M~ M71es Dean 9 , . , . . of Kenai Harbor Comm~ss~an stated that ~h~s~ was a val~d canc~rn, but the use the corporati on was ma~i ng of the soi l was and wou~ d be kept w~ th1~n the ~ baun~s of the engineer`s recammendatian, The soil was usaale although fa~ frt~ ~dea1 for fill of this sort~ Th~ dock ~t~elf would be butt~~~~ed an~ interlac~d with supports ~dd~tiQnally~ ~~ Mr Joe Freebrock, f~~herman, geo~ ogi st, i nvesta~ i n~he Kenai~ ~~^ea and 1 ongrtim~d fo~mer resident cammented on the nec~ssity of o~t~~nTng ~ood geQlogica~ he1p, Mr Freebrack gave an example of a small ch~nge ir~ t~e ~iver channel which mad~ a f.i ne army dock vi rtua l ly unus~b] e due t~o a~00 f oot eros i on of the ri ver banl~ on ane side as a consequence of the first, man~made ch~nge. Any t~me the riverbank is~tam e~ed with~ the cansequences may turn out ta be the necessity of constant P wark to keep i t fun~t~i oni ng. _ -- ~. Cit ~ttorney Ernest Sch~ereth asked the Corps r~presentative if the applicant .Y , . . for a permit must already be a leaseholder Qf the 1a~d jn quest~on. Mr 8oar~man .rep~~~d that, a~thou~h the ~ar~s far prefers that the app~icant for a permit have control of the ~ and fQ~ which he i s ap~lyi ng, there i s~a hard and fast pol i cy an i t. An ppti ar~ a m~ n i~a1 l~, on ~h~ ~ and i s f ar the pref~rence. . ~~~ n ted her vb'ectian to the Corps proc~edings with issuance Mrs Ruby Coy~e a ~ . A Mr Boardman stated - on the erm~ t for Tracts B&C to Ken~~ Narbor D~vel opm..n~. P 1essars who were~up and downstream from the proposed tha~ those pr~operty ov~ners~ .. _ , . use tl~e~ were ~. . 'ect were_. not~f~ed, ~_but tM~ Cqyie s were nat pro~ably beca Y s~te ofi the proJ . . :. , . - ~n back of the praject. . President Pro Tem ore Bob Peterkin nc~ted that the co~ni~sion w~ill just recommend P . . an act~on to the Council cvncerning the ~ease of these lands and the Caunc~l w~il f~nall determine the dispositian of the ~~ases. There are two leases au~ to ,Y . . . Kena~ Narbor Deveiapm~nt currently that do not confl~ct w~th thi~ lease being considered;_ ~l~ese leases cover the northern third of the area. r Mike Martin and t~acey [P~aybe~^ry of tMe United States Cvast Guard s~oke next - to the Commi ssi an, autl i ni ng thei r rol e i n the devel opment of the: Kena i R.i:ver. .. .. . . ~ .. ~ ,. ~~i ~}~ rar~c~i~;~~~~ ~~h~~ ~Coast Gu~rd deal s with co~erci ai vessel and po~^t safe~y as well as o~1 s i~]1s, At the ~~me o~ bui~dina t~ese sys~~~s,~h~ Caast Guard would P , . . npt have Veto power over the praposals, The Cvas~ Guard, Mr Mart~n sa~d, m~ght have input, but the would i~av~ no autharity; the Co~st Guard car~ review and ~ , . . .. . . c~mment on~y~, The Coast Guard rs pc~n~t~~re, but ~ s not adm~ n~ strat~ ~re ahead of t~me. . .. . . _ : An stud ~ of vessel traffic, such ~~s ~vas ask~ed ~abou~ "earlier by City Manager Wise, Y Y . . t~l~es years to perf orr~ and a 1 ot of r~oney. New York Ci ty ~ s vess~l traff i c s~udy to~k seve~al ye~t^s and cost many~ mfi113 ons pf do11 ars, Mr Mayberry added . 2 Car~ni ssi oner Peter~k~ n~sked the Cor~ps i s the gas and o~ 1 i n bul k, ~uch as woul d be kept i n the Kenai Narbor under di ~cussi on, qual i fy as haza~^dou$ materi a] ~-- and, there~ore, lend itself ~o Corps ~crutiny. Mr Ma berr answered that 110 allons was generally the magic number for commercial Y Y ~ . quan~ ti ~s of ~~~ardous mat~r~al s, Any fuel ,.and so an, tf~at i s bei ng pumped i nto a commerc~ai vessel from a con~ai~er that con tains l l~ ga 1 lons o f fue i fa l ls un der the Coast Guard's ~urisdicti~r~, ~ ' * ~ ~1 -~~ ~ , ~ ~ ~ . ~ . K~N~ I HARB4R C4~~M I SS I 4N RE~ULAR MEETING, JUNE 12, 1979 Page 4 . Mr ~~:~ Freebrack asked how invo~ved and wide~pread wa~ the Corps' authority ~ conc~rning public safety, not~nq the char~ges in t~e river Ghannel since the ~arthquake have cause.d~.wso~~~ vessels that are anchored in the river to ~ get crosswise in the channel when the tide ~han~es, making it impossible or extremely difficult far other rressels to navigate. This situation, r~r Freebrock emphasized, is dangerous. Mr Mayberry acknow~edged the dangers of this prob~ems, stating that the Coast Guard had not earlier known of the depth of the probl~m. The Guard, Mr Mayberry added, wi11 be in touch with Commissioner Peterkin to keep him a~reast af their - pragress with ~h~ prablem and to keep themselv~s aware of their success in f~nding a solution ~o it. Mr Martin cantinued fvr the Caast Guard stating ~hat all enfvrcer~~nt of regulatory work wi11 cvme from An~horage and that anly six p~ople are curren~ly engaged ~ with the guard for t~e entirity c~f the State t.o;do aIl of the ~atralling for - the baa~s. Th~ Co~st Guard pldns to have it~ three man detachment in K~na~ -- far the Mari ne Safety work. _ ~ At this aoir~t in t~e meeting, ~I~e questions/comments~repli~s were asked of . both the Cor~s and` the Coast Guard as tf~ey hap~ened to arise from t~e Commission. Commissioner ~agoner asked whose responsib~iity it would be if th~ river w~re to ~ b~gzn deteriorating after the Kenai Narbor Development praject was begun. . - The Corps toa~,~th~~~ ~~~e~~i~n~ ~~s~~~~bi~fg'~~i~at~'the ~~~~~1'o~~rig~ i~~~~l~d: ~gpne~a t ~~ ~hap~er~ ~ ~1~ Was th~ occurrence percipitate:d ~y the project, would b~ the questian ~sked. 2) If the occu~rence was, then the Cor~s would require the permittee to madify ~. the structure to alleviate the ~roble~. Thi~ would proba~ly be dane at the .._ expens~ of the 1 easehol d~r. _ - Corr~i 5s i oner ~~agpner then questi on~d as to whether or nat the ~roj ects ~rere ~~~~fi~r~y.,1 +.;1 taken through the Corps Engineerino Department when under study by the Corps. Mr Boardman replied ~o the negative, statin~ this was only done if sor~ething `~ appeared durir~g the notification hea~^ings or if something would appear grossly . - or obviously wrong with the ca~ua1 scrutin~r that was standar~d. The Corps is a government agency and cannot spend its ~ir~e ar funding to do the engineering work for an i nd i v i dual , Mr Boardm~n canc~ ~~c~Pd t ~ Commis~~aner Cone as~ed Mr Boarc~man who would own the leasehold improvements s.}~, for- a devel opment such:- as Kena i Harbar D~vel opmen~t; Mr Boardman repl i ed that ~=wou]d probably depend upon ti~e form~latian af the Iease. , Commissioner Gone then stated tha~ publi~c funds for taking care of a probler~ wou 1 d robabl ~ be used ~ f one ~vere to devel op wi ~h the ~i ver, but Corps Representat i ve . p Y - Boardman replied this was not necessari1y so. Extreme care must be taken a~ to what the funds were spent for, Pres~dent Pro Tempare Peterkin interjected tha~ the Kenai Harbpr Devel opment m1~ght wel 1 be responsi b1 e for correcti ng the probl em if ~heir project caused one. Mr Bo-ardman said tha~ the Corps could only work on t~e project if si,ltin were to imped~ the river i~tself dnd Conaress spec~fied the 9 Gorp~ ~ras ~p wo~rk on ~ t t ~ . , t ~ ~ ~ . ,~ ~ KENAI HARB4R CO~MrSSION REGULAR MEETING, JUNE l~, 1919 ~ . Pag~ 5 . ::: ~ ~ ~ ~ ~ . ~1 ,,;~ ~ ~ . Mr Freebro~Casked what length wou1d be the liabi~it to the 1 ? ears would his l~as • ... ~, essee. Haw mar~y Y ehol d~ ntere~t ar~d 1~ ab~ 1~ ty be ~ n effect? ~ Mr Boardman ~ta~e~ ~hat he assumed the l~abilit ~rou d y 1 1as~ as long a~s the lease. If the lessee would fail to util~ze the facilit ~ ' the ~ess • . y, hen techn~cally ee mus~ return th~ s~~e tv ~ts for~mer state. Normally th~ Cor s does not require this be ~one but if the wa ' p ~ ters were ~eopardized, then the ~ f~~~~~ ~ lessee would probably be as~ed to remove the ~aciil~ . Y . D OLD BU5INESS 1 Mr Bill Breck spok~ for th~ Kenai Narbar Dev~l ' • opment Corpo~at~on asking if the i~ems ~ha~ had been aske~ for fror~ the Comm~ssion ~ at_the last meet~ng liad been done~by his group. Mr Breck no~ed ~hree it~ms: ~ 1~ Charig~ ~rom Ra ~r ~o Kena~ p ,.~farbor Development - Th~s, Mr Breck stated, he . kne~ had been done. The ~drn~n~str~t~ye Ass~stant tp the Co i' '' • n~n ss~on verifled th~s. 2} ry~e of financing a~d wh~t grou~d work had be~n done was ~sked - ~~r Breck s~:a~ed that t~~ woul d repor~ on thi s momentari iy. 3) Tenta~i~e ~et~ers ~from ~ter~tial _ . . ,, . ,p lessees sor~e.~etters had been sent to the Comm~s~~on a~d were ~n the~r pa~k~ts. Mr Breek stdted that he wou th~ s fur • . - , _ . .. : _ 1 d devel o~ ther zn h~s preser~ta~~on. ~ ` Concerni ng ~(2 ) abov~, Mr. .Breck s~a~ted t~hat KHD d i d nat~ ~'~ ' ~ . . . . . , at tM~s t~me have a direc~~or~ w~~th the~r f~nanc~ng. There are t~wo ass~bil~tie5 a ~ One instituti n • • .. .p pen tv them. 0 ou~ o~ Cal i farn~ a sp~c~ a~ ~ zes ~ n~ aans r~ade wi th the US De artment of Agri~u~ture. This ty e of loan be ins i- p ,p g w th the 1oca~ ~ank, in this case , Alaska S~ate B~nk, act~ng as a lead lender. This bank i~ r~s on~ib er~cent and •~~ - p le for ten p , the r~st of ~he loan ~s guaranteed by the Unlted Stat~s ae artment of a~rlculture. The ~oan ~s then soTd p on the r~arket, much like a regu2ar mortgage. The difference 7s that the bank's risk is 90 ercent uar~an . ~ b the oVernr~ent. T ••• • . p, 9 teed ~ Y 9 he second pos~~b~l~ty ~s th~ ~ndustr~al revenue bondin such as wa~ appr~oved as a Chart~r amendm g ~ en~ by the local voters-recently. ~ There is a very tenuous ~hird possiblity af a US rant but ~his is daubt~ul. - g ~ extremely Mr Breck emphas~zed the need to have this lease move a1 n ' ~ so that • • . . , o g as quick~y as poss~ble KHD can farmulate ~nter~m ~~nanc~ng, Th~s cannot be be un until the Carps of En ineers' ermits r' g ~ . g . p.. .. a e~ s~ u. e d;. t h e,. ~ v r p s m u s t. s:~ e a: l e a s e o p t~. o n o r a_. l e a s e : b e f a r e t h e y w~ 1. 1 b e g ~ n s, e r~ ous~~ re~~ ew .o~ t he. r,.o osal ~ for the~ ' . P P perm~t. . . . ... . .. . , _ _... , The prelim~nary f~nancial acka e will be re ~. ' • ,,, p. . g v ew~d b,~ a co~ni ttee of brokerage f~ rms once the p~r~~t ~s ~ssu~d; ~t ~~ only onc~ tMe committee can meet and review the project that the interim financin will be in to ha • . . ~ 9 ppen. The long term comm~ tt~~~nt w~ 11 be a requ~ rement~ before the i nterim f i nanci n i s rel eased. 9 W~th the US Departmeat of A riculture uar • g g antee of 90 percen~ of the ]oan, this type of f~nanci~l involvement, such as in~erim financin , is ea~il ' T'he USDA ho ~ , 9 , y obta~ned. , werrer, does not put ~ts money on the lin~, they ~ust guarantee the ioan. M ~ K , i , ° ° KENAI• NARBOR COMPIISSIDN REGULAR MEE1`ING, JUNE 12, 1919 Pag e 6 The interest rate, Mr 6reck sta~ed far these various bandsr would be n~ne pe~^cent for the City or State ~ndustriai development bonds and 12 ~to 13 pe~cent for the cor~ercial/USDA financing. KHD, Mr 6reck added, is stale mated until they have a lea~se or an aptjon to ]ea~e from the City, Mr 6r~eck then presented a map to th~ Harbor Commis.~ion showing the latest engineer's proposal for the facii~ty, The dock is curre~tly shown~projecting into the river, but this is only a tentat~ve propasa~ and it may not be the best spat for it. Ever,ything excep~ the d~ck is inland and has a min~mal amount of impact upor~ the ri~rer. ~, 4ne of the addit~onal ~tems th~ Commis~io~ ~requested after the last meeting, three of the l~st above, was for ~he presentatian of letters af s~~port and letter~ from poten~ial lessees. Th~s was a difficult ta~k, but KND has draf~ed, Mr 6r~eck sa~d, a promisory committment to lessars -~ this prom~sory committmentx,should determine whether or not people a~e really interested ir~ lea~ing. The committment wzll depend upon the praject's cam~~~tivn. ~ In appraising t~~ praperty, one af the most respected and conser~~at~ve t~rms, in Anchorag~ has been reta~ned to d~ the ~ppraisal, but they will not.act unt~1 the financing is ir~t•aGt. The finacing is waiting on the apprai~al and the appraisal is waiting o~ the financing. This p~~ential les~ee's doc~ment is intended to step out o~ t~is cirCle and to see if the appraiser w~i1 go ah~ad a-7d appraise based upon this as a committment, Mr Breck add~d. - ~Pr~esiden~ Pro Tempore P~~erkirt asked where the solid engineeri~g propasa~s the~Commiss~on requested were. : ~ .Mr Breck replied that the final engineering cau~d nvt really be justified until the leases, or optians, were obtained that cauld warran~ KHD spend~ng tl~e addi ti onal funds on i t deman~ed. Mr Breck conti nued, stati ng tt~at R&1~ Ccansul ti ng .Er~gineers have looked at the concept and have look~d at the Corps of E~gineers report an the Kenai (1916 Corps Study~; ~he June 5 letter from R&M indicat~~ , they have reu~~~ed a 1976 s~udy a~d agree with their findlnqs -- th~ Corps says na pr~blems with the one half tide study. Th~e main problem, the Corps found, to develooment, was cost. The Corps sa,ys th~ difficult~es i~ developing a deep draft harbor wou~d hinge on the ~xp~nse. KND does ~ot have the official engineering on this because of the expense of it. Pre~ider~t Pro Te~pore Peterkin asked if ~he Kenai Harbor Development had a study to support the work they were ~urrently doing on Tracts B&C now. Mr ..:~rock replied that KHD did not. There was a study done, Mr Brock continued, ~. fr~om on down the ~ ri ver, but tha~ study i s the ~ cl osest. .- -:.. __ .., . Mr Miles Dean of KHD interjected tha~ he had stud~~e~ : a~~l a soi~l report ~hat he had just abtained. KENA I NAR60R COMM I~.: IiON REGULAR MEETING, JUNE 12, 1979 Page 7 Councilwoman Gli~k questioned the fact that ~he soil that was, to k~e used for fi11 that was caming frQm the tracts themselves. The engineer's re ort states . . , . , ~ that the so~l ~s s~lt w~th som~ clay and may be unstable ~n water. Mr Br~~k s~ated that the area in which the fiil is being used i~ dry; the ~wharfage:area,which was the eng~neer~s concern, wi11 no~ have arjy o~ th~s fil~.placed in it. The engineer has now planned a stronger bulkhead than or~g~na~ly planned beeause of this concern, Councilwoman Gl~ck than asked what this extra support was, and ~~r Br~ck outlined 3a inch diamet~r ~ilings that wou~d be f117ed with ~oncrete. Between ~he pilings will be 6 by I2 timbers on the low~r area with 4 by 12's above. In an~wer to Couneilwoman G~ick's direct question abv~t KND's a~areness vf, and attentian to, th~ s probl em, Mr Br~~k stated that Kena i Harbor flevel opment was cogni zant , of ~t and manitorin the use of this margin~~ fill close~y. Mr Br~~~ went on t~ say that the wha e area is projected to be slo~ed ~with riprap to r~ta~in the cq~rerin~~ ~ d~eper study ~s necessary~, bu~, again, there m~st be more of a def~n~te comm~~tment concerni~ng t~~e leases before there ~s economic justi~ication fa~ KND ~o inyest t~e amou~t pf m~ney~ ti~afi wauld be neeessitated by such a study. ~ P~es~den~ Pro Temp~re Peterlc~n ~~est~~vned the s~ze of the o enin at the mouth af . . . . . . , ~ p g . . the ~~ye~, not~ ng thdt ~ t~~s st7~~ ~ not ~ ndicated 1 n tl~e plan~ ~nd, even ~ f~ t w~1^es t he 5~ze cou 1 d c~~nge be tween t h~~s an d the ~in~~ plan, Mr 8r~~ck ~cknowl eaq~d~~t~ai ~~, r~~sayi ng=~t~a~ ~~ R&;~ f i~^st be1 ~ eved a w~~r w6uld be t~he best method to combat ar~y prab~ ems wi th t~he mouti~ of the apeni n for the har~bor, . 9 ~ bu~ ~ n th~ most ~ecent ~~ ~n r~comr~ended not us i ng a wei r. It w111 tal~e a better~ study to deternz~ r~e what wi ~ 1 be the best meth~d. ~~r~ 6~^~ck conti nued sayi ng that KH~ has pl anned a 14~0 foot wharf for process i ng pl ants and without the~~ p~a~ts, the project cannot work economically. Mr Bre~k said that he hoped the Harba~ Commision recommends to the Council ane of the following ~ . ._ wo th~ngs: 1} Conditior~al leases aiv~n Kf~D a 1im~ted time eriod to roduce finai ~ans financin g P P P/ 9 2~ Optian to lease once KND ha~s m~t ~ertain conditions. . ~ __. . . ~ The conditivns, Mr ~r~cic outl~ned, would be - 1~ Corps of Fngineer's ermit : P Z~ Approved finan~ing package , Commi ss i on~r Wi 11 i ams noted t~at ~he f i nanc i ng probl ems ~ wer~e common wi th a 1 arge project; samet~mes a hvle must~. be kic.ked in something to get the proje~~ going, Co~nmissioner Williams ti~en asked. what ~sort of a time frame ~#~~~ Kenai Harbor Devei opment Corpor~ati on wants, . Mr Breck responded saying that 12 months wauld be ood~ but 18 months ideal; 9 h4wever, KHD would be happy w~th 12. Commi ss i oner Wi 111 ams ~sk~d ~i t~r M~~~~e~^ ~l~ ~~ i~~~ ~~~ ~ ett~r~~ t~ t~e BLM ~nc~ t~e ~^e j ected appl ~ cants f~~^ th.ese tr~ct~ of 1~n~ h~~ ~een ~~nt ~ Th~ C~ t,y~ 1~an~~~~^ replied that they h~d n~t~ ~~t ~e~wauld send t~em ~~mmed~~tely. KENAI NARBOR COMMISSION ~ , REGUtAR MEETING, Jl1NE 12, I979 ~ , Page 8 ~ ~ 4 ' ioner Te 's uer concerning the schedu1ing af curr~nt In answer to Cvr~~ss pp q Y . construc~ion with Fish and Game, Mr Raper sta~ed that there was no cons~ruction ha~ enin in the riVer, but there cQuld be wark in the river from June ~A 9 15 to Ju1y 1 and Qctaber 1 to Apr~l 1~ Gity Attorney Schlereth asked if the 12 month conditional permit wou~d b~ acceptab1e to a ~inancing ~nstitution. ~~~? r ck nsw~red tha~ KND has current1y two ~eases and would prefer a third ~ Mr B e a one done as Trac~ C is doner th~ lease ~Form such as on Tract ~ would not work. Pres ident Pro Tempore Pete~ki n noted that the Commi ssi ar~ had~ spoker~ of a conce ~ 1ease a lication that made the recommendat~ons of I~ finaneing ; P Pp ~and 2~_ 25 p~rcent oecupancy upon camplet~on 3~ total engineering for ~he conce ~~hat ~tou1~ canVi nce the Comr~i s~i on/Gounci i of i ts fea~ i bl i ty. ~~ ~ p , PrPS~d~nt ~eter~~n ~ent or~ to say th~t he believed the f~nancing packag~ ti~ou~d ~e uir~e 45 ercent occupancy ~on~mittments. Presldent Pro Te~pore • q p . ulator P~te~~kln a~u~d that he fe1 t the kHD must accept some sart of C1 t~r reg y juri~diction cancern~ng the~:r rates. ' n r Wis~ not~d that at least~ one o.f the t~ro curren~ leases had a provision City Ma age for Cor s~eview of s1ip r~ental and fuel faeilitles plus boat grid ope~ation; there ~ ' h ~ also. would a3so have to be a rate schedule rev~ew_by t..~ Gounc 1 : : . . _: -P~r Freebrock stated t~hat the City evident~y would have contro~ of the ~~rbor area; . -wauld th~s i~ciu~e Columbi~a Ward~, Dau~enspeck; and so on. Mr Freebrock fears t at, ~t some future date, the Gommissian might st~pulate an tl~e use and the cand~t~ons of the areas that~ are currently being u5ed by ~hese businesses. '' r~ l~~ 11 i ams noted t~at the C i t al ready revi ewed fe~s Qn t~e ~ e~ased _Comrn~ss~on~ Y . x1c~ erty such as Sal amato~s, but daes not be~ i ev~ that the Ci ty coul d step ~ nto l~ p , . the area of pr~ ~ate ent~rpr~ se t _ . _ ~ __ _ . . _ __ ~. . . . . . , _ , . . -. . .., ~ k bser ~d that re ulations nave come in t~he picture and not been Mr F~'eebrac o v g . .. , i n~ended ari ~ na11 but were eventual 1y. i nstrt gated ~as~d upo~ earl ~ er, unth~ nk~ ng ,. ~ ~ ~ ~ d ~aref ul 1 A 1oopholes. Mr ~reebrock believes this possibility should be ch~cke ~ ~ naw. C~t Manaqer Wi~e called ~ttention to ~he areas of distinction in these problems; y 1~ deals with landlord ~elationship~ and 2~.thi~ is a~so a special problem ~ :~since the ~bli~ is invQived due to the prvposed.are~ s~rv~ng so:many people ; p . .. . ,.... .. , :. _ . . : . d ~ . . w~ th the C~ ty a~s .] a~nd1 Qr .~ -_ - _ t. . _ .. _... , - .{ _ . . . . . . - . ~ ~ , __ ~~ ., _ .M.. Br ~ck st ted that i~ the commi~ttment to lease i~ssued between the City contains 1^ ~ d , a roVision al~owin far gavernmental regu1ation of rates, the financir~g people P g . . ntil wi~l not knaw whether or nat the pro~eGt rates w}11 be .~n~~ goad u ~ND can `g:o: thraugh the process of regulation. Cit Mana er~ Wise stated tha~ the Yidelands Ordinanc~ would set ~~ the procedures. ~ g • • • • • ' ' n refer~red to the of reguiat~pn ~nd it ~s sti11 ~n publ~c hear~ng and has bee b Ca~unission b the Council. Th~~Ha~b~r Comm~s~ior~ wi11 set up the procedures. Nar or Y ~ • ~ the Secretar Salamatof is currently beinq dvne under spec~~l d~spensat~on from Y of the Interi or for i t~ 1 ease. ~ KENAI NaRBOR C~MMISSION ~ REGULAR MEETIwG, JUNE 12, 1919 .,. ~ r:. Page 9 w Mr Roper stat~d that these procedures were incorporated in his Tra~t C i~ase ar~d i t was ~nQt. , posslbl e to expect the K~D to sper~d mi l l i ons of dol l ars to dev~.lop~some land and nat to receive compens~tion. . Ca~mi ss i oner Wi 1~ i ams sta ~ed that. one of the reasons for a regul ata~r comr~i ssi on far fees was to ascertain ti~at the ~usiness is a success a~ ~rell as to protect the ordinary citizen. President Pro Tempare Peterk~n said these prvblems could be resolved after the finaneial package wa~ comp1ete and the rates pr~e~iminarily estab~ished. Mrs Ruby~Coyle ques~iQn~d ~hether or not the Coast Guard m~ght deny ancharing privileges in thE Kenai River once ~he KHD develapment was complete, but President Pro Tempore Peterkin abs~rved that the spaces KND will lease wil1 no~-accomod~te all of the boats by any mean~ that c~rrently need space. The Coast Guard will not be able to rule against anchoring in ~:he river. Mr Dean outlined the underground ut7lit~es a~d City sewer and water t~~a~ would be available to those le~s~ng k~D S1ips and stat~d that the slip~ would be offer~ng ~nore services ~nd wvuld probab]y cost mor~ than slips in Seward or Homer. Cammissioner r~il~iams stated that even the processing plants that presumably a1-1ow c~mmercial fisherman ta c~se baat sl~ps at their plar~ts for free have stipulations about us~ng these sTips whic~ in effect create a r~~ujar ,_ r charge. Commission~r Tepp added that, as a commercia~ fisherman,~he would be wil7ing ta pay a reasona ble charge for a wel]-run slip; these faciliti~~ KH~ is planning ar~ needed. Mr Breck questioned whether ar not the harbar was larg~ enough since there . would a~tually be probably on~y 400 slips. Commissioner Wagoner stated that the lack of fi~h to catch at th:e mouth af the l~enai wou7d be a disadvantage, for the fishermen would Have a lonrer ~rip ta reach the finer fishing gro~nds. f Mr Coy~e stated that the ~eep Creek area is much clear~r and the fish will ~ not bite as we1i in muddy waters. Commissianer Wagoner questioned ~he fac~ t~at the enQineering was different between this latest pian and the earl~er one that wa~ put forward ay Kena~ Narbor Developn~en~. Mr Dean responded, saying that the change was done in ca~e the Commission apted to g~ve another appli~ant some of the land as~ed far by KND. Mr Bre~k added that KHD has ~ained more space by moving the facility so that ~ome the fish processing parcels are 1arger and more advantageous far the processors. Cammissioner Williams felt the Cammission should give the City Attorney some vff~cial direction in preparing the conditional lease document for Tract D. KENA~ HARg~R COMMISSrON REGULAR ME~TING, ~IUNE l2, I979 Page~ 10 ~ After some discuss~on in which Councilwaman Glick painted out th~t motions ~nust be resented in a positive form, the fol~owing was enacted: P MOTI4N Commissioner W~ll~ams moved to approve the application far ~~ase of Tract_.A from ~aul Nelson seconded b Tom Wa oner. Discussion foi~owed concerr~~ng the relationship ~ y .g . ~ . . between the 8LM and the C~ty. Comm~ss~oner W~ll~ams stated ~hat tMe purpos~ of this motian was to actually deny Mr Nelson's application un~il ~uch ~time as the st~ u~ations were removed from the 1and; this was necessary because it would ~ . . . • take too iong to cor~plete the negotiat~ons w~th ~he BLM. The prob~ems w~th i 11 ega~ stor~ge of ~oats and dumpi np of aarba~e on thi s 1 and ~ras a1 so r~en~ioned b,y the C~mmi ssi on. _ Motion failed unanimausl~ b~ roll call vote. ~ ~ .~ Y f~ MQ1`I~N Commis~ion Wil l iams moved to a~prov~ the awpl ication from Royal, pacif~c F~sher~ies , for ~a or~i~on o~' Tract Q. Se~andec~ b~ Chester Cone. In the d~ scuss~ on that ~ the Federal R~ ~~a~ion~ fol l owed, Comm~ssi~aner I~r11 ~am~ pvi nt~d out, read i ng f rom g f'or the Corp~, ti~at the Corps w~11 give pr~ference in the~r perm~ts ta thase a iicants whose 1ans: 6enefxt th~ ~arger p~~por~ion of ~he populatiorr. The Pp , p ~~ di scuss~ on t~at fol l ow~d cen ~ered: on ~rhethe~ or nat the Corps had r~ecentl~ l et er~ni ts f t~r doc ks that wot~l d~en~f i t sma11 er segments vf t~e po~u1 at~ ~r~ . P . Generally, i~t ~vas agreed t~at 1ea~3~g from I~enai Harbor Developr~ent would be easier than ~rQm same a~ the smaller~ p~roposa~s, Commiss~on~r Cone sa~d, and the conditiana1 1ease ermi~t wou~d sti~1i a11ow the Narbor Commission t~ make a P . . deci~ion at a later date. The mot~on to approVe the appl~cat~on from Rayal ~'~c~f Yc F~~sher~~~es ~c~r a pot~on of Trac~ D was unanimausly dlsapproved b,y a ro11 cal~ ~rote. : . Pr~esident P~^o Tempore Pet~rkYn asked the City Adm~n~strat~an to send 1~tte~s tp R~ a7 P~c~fic ~~sh~rles and Mr ~aul Ne]~on exp1a~n~ng the d~sallowance af - '~ . . ~ ` d ke car~ of the two p~ey~ous mpt~vn$. Cxt~ ~lanager W~se stated that he waul ta this. l , Mrs Rub~ Cayle ~sked that th~ Har6~r ~ommission examine the problems wi~h the sma11 b~at I~a~^bar T~ract ~, ~ecause o~ the many prob1 ems associ at~d wi th ~ i t such ~s dumpY~ng ~a~^bage there ~ ~resYdent Pro Tem ore Peterk~n ~ave his gave~ to Commissian~~ ~lilliams and P .- . made the ~ollow~ng mot~an: ~ :. , , ,. . . ._ MOTxON . CvmmTSSioner pe~erk~n moved that the City Attorn~y, Erne~t SchTer~th and the Kenai Har6o~^ Dey~lopment attorn~y~ff~nanc~a~ advisar Bi~l Bre~k, meet and farmula~e a presentation to pres~nt to the Kena~ Harbor~ ~ommission in k~ep~ng with the minutes o~ thTS m~eting. Cor~nissioner ~ane secanded. During t~e fol l owi~ng di~ ~cuss i on, Commi ss i ofler Peterki n stated that he f el t the attorn~~ cau~d meet and come to an e-u~table en d concerninq a con di tiona l eys , , ~ . . . . use pern~~t wh~ch ~ou1d be d~scussed at a special Harbvr Cor~n~ssion meet~ng. + ~. ~, , , W , , r~ ~ KENAI NARBOR C~MMISISON REGULAR MEET~NG, JUNE 12, 1979 ,. Page 11 , . . , , ~ motion was unanimousl a proved by ra1~ ~all vate .~ The Y P : w '~~~ • ' the avel to his office b~~k and set Pres~dent Pr~o Tempore Peterk~n took g .. eeti n date as Jcan~ 2~, 7: Q0 PM at the Kenai Publ i c Safety Buz l d~ ng . the next m g • ' ~ed b the l~enai NarbQr Commi s~:i on for rev~ ew The T~delands or~~nance was accep y at the June 26 meet~ngt The meeti n ad j our~ned at 1 Z~ 35 AM ~ ~`~~ - 9 . Res ect~f u11y subm~ t d p ~ ... i.., - P.i nk Wti pi 1 ~ Administrative Ass~stant ~ ~. .