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HomeMy WebLinkAbout1979-08-28 Harbor Commission Summary~ ~ ~ f . i .. ., d . e 's ,_ . ~~ ~ ~ KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, 1979 , CHAIRMAN PRO TEM~PORE BOB PETERKIN, PRESIDING AG ENDA PLEDGE OF ALLEGIANCE ~ A. ROLL CALL ~ AGENDA APPROVAL ~ B. MINUTES . 1. Minutes of the regular meeting of August 14, 1979. C. CORRESPONDENCE 1. John Merrick, BLM - Change of Authorized Use of Land. D. OLD BUSINESS 1. Prepare Phase II of Tidelands Ordinance for Council. E. NEW BUSINESS 1. Kenai Split Subdivision - for Planning & Zoning Commission ADJOURNMENT ,. ~ . . `~ r,~ ; ,+~ ~ KENAI HARBOR COMP~ISSION REGULAR MEETING TUESDAY, AUGUST 28, 1919 A. ROLL CALL Present - TOM ACKERLY, BOB PETERKIN, TOM WAGONER, JOHN WILLIAMS, CHESTER CONE, BOB TEPP~ BILL BURNETT,.~~-OF~ICIO MEMBER-MAYOR UINCE 0'REILLY. Absent - EX-OFFICIO MEMBER BETTY GLICK 1. Agenda Approval Commissioner Williams noted tha~ new business listed discussion of Kenai Split Subdivision. His motion at t~e meetin of Au ust 14 1~1~ . 9 g ~ proposed no new business until the ordinance was comp1eted~ Chairman Pro-Tempore Peterkin suggested we send a representative to the next Planning & Zoning meeting to find out what they want. B. M~NUTES l. The minutes were approved as written, C. CORRESPONDENCE 1. Letter from BLM, John Merri ck, i~eqardi ng change of use of 1 and. Chairman Pro-Tempore Peterkin explained this land was deeded to the City by ~LM, to be used for recreation purposes. Kenai Harbor Dev- elopment is interested in leasing this ~and. Mr. Merrick states land use cannot be changed because land was not sald to us at Fair Market Va1ue. Commissioner Williams requested Attorney Schlereth to find out how land was acquired, paid for or given to us. . D. OLD BUSINESS 1. Chairman Pro Tempore Peterkin distributed a Sunday edition of the Anchorage Times ~eaturing use of harbor facilities at Dutch Harbor. He also distributed a recent ed~t~on of Action magazine showing the reuamping of the docks at Dutch Ha~^bor. 2. Chairman Pro Tempore Peterkin asked Attorney Sch1ereth if Phase I of the ordinance was complete. Attorney Schlereth re lied the Cit . , , , p Y Counc~l had passed the first read~ng. Chairman Pro Tempore Peterkin requested Attorney Schlereth to get final form of Phase I and mail copies to commissioners. 3. At Attorney Schlereth's request the meeting was adjourned to give him t~me to obta~n Phase II of the ordinance and copies for distribution. 4. Chairman Pro Tempore Peterkin introduced the Kenai Harbor Develo ment . . , p Corporation porposal for discuss~on. Commissioner Wagoner asked Miles Dean if Mr. Roper had signed over tracts B& C to the corporation. Mr. Dean replied he had. Commissioner Wagoner noted the Option to Lease Tract D lists Robert L. Roper as in- dividual owner of Tract D, rather than the corpor~ation as owner. Attorney Schlereth stated that Tracts B& C had been signed over to Kenai Har- !~ KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGCIST 28, 19~9 Page 2 ~ bor Development Corporation and copies of the transfer had been sent to the committee. ~ Attorney Schlereth explained the background of the Option to Lease Tract D-with~Kenai Harbor Development Corporation. McLane Sur- veying did the original survey. Roper originally had Tracts B& C and was developing a harbor, when Kenai Harbor Development joined him. Kenai Harbor Dev~lopment felt they needed "paper" to obtain financing and U.S.-D'ept. of Engineers permits. He and Kenai Harbor Development had difficulties with the first lease and a new one was prepared. Primary changes are - the first lease required Kenai Har- bor Development to survey, but the City has done that, so it was deleted from the second lease. The first lease had Kenai Harbor Development do the appraisal. It is general practice for the City to do appraisal, so that was changed. The required development plan has been deleted, and the warehouse referred to in the first lease will be sub-lease. The City has never had an Option to Lease before. In one year Kenai Narbor Development will be required to have: a. U.S. Dept. of Engr. permit. b. Fi nanci ng c. Finalized engineering drawing by licensed engineer . The cost wi11 be $1200 a year, 6/ of Fair Market Value. Tracts B & C must be developed per the previous lease unless they are trans- ferred to Tract D under Kenai Harbor Development.` The option is not assignable. The lands may be subject to preference rights claims. The commission has the right to make sure rates for rentals are reasonable. Commissioner Wagoner asked Attorney Schlereth if this was a 3-party ageeement since it still lists Roper as a separate entity from the Kenai Harbor Development. Attorney Schlereth said ye~o He explained the City Council has not approved the assignr~ent made by Roper to Kenai Harbor Development. Mayor 0'Reilly stated if the commission approves the assignment the council will accept the recommendation of the commission. MOTION Commissioner Wagoner made a motion that the commission table the second draft of the Option to Lease Tract D until Attorney Schlereth has drawn up and presented to the City Council an assignment of the leases held by Roper. Commissioner Cone seconded,the motion. Commissioner Tepp suggested that all changes be made in the lease before it is tabled. Commissioner Williams asked Mr. Dean if Mr. Roper was willing to release the two tracts, can Mr. Dean speak for Mr. Roper and will Mr. Roper sign the tracts over if the commission does not approve the option. Mr. Dean stated they had been signed over. Attorney Schlereth explained that the assignment had not been recorded. KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, 1979 Page 3 MOTION Commissioner Wagoner made a motion to withdraw his orig~nal motion until all changes had been made in the lease. Commissioner Cone seconded the moti on. Commissioner Wagoner noted that if Mr. Roper does not agree to the changes, the lease will not be valid. Commissioner Burnett suggested the comm-. ission make the changes and move ahead with it. Chairman Pro Tempore Peterkin agreed we should go on the assumption that Mr. Roper will agree. He requested Attorney Schlereth to make changes, have Mr. Roper sign~and have the lease ready for the next meeting. 5. Mayor 0'Re~lly introduced for discussion a proposal to merge the airport commission and harbor commission. They both are transporation- oriented. He proposed adding two additional members. He requested the commission discuss this at their next meeting. Commissioner Williams mentioned that this had been discussed before, and asked if the mayor was proposing a port authority. Mayor 0'Reilly suggested a comm - for the present, and later an authority. Ne mentioned that with the possibility of State funds becoming available, the City should have a controlled and central authority. He reminded the commission of the unanticipated Wien flights and the fish processing airplanes as examp1es of that need. Chairman Pro Tempore Peterkin asked Mayor 0'Reilly if he wanted an answer before he goes to council. Mayor 0'Reilly said yes. Commissioner Williams suggested we apply for the $800,000 grant from the State for Port and Harbor development. Mayor 0'Reilly stated he thought the amount was $600,000. Commissioner Williams asked what it wou~d take~to get the funds to the city. Mayor 0'Reilly replied we would need a proposal. He also reminded the commission that these funds were not to be repaid. 6. Attorney S~hlereth returned to Option to Lease Tract D. He stated he will have Mr. Roper sign the assignment of Tracts B& C on city paper. MOTION ~ommissioner Williams moved the Commission recommend to the City Council the assi9nment of interest and lease to Tracts B& C now held by Mr. Roper be made to Kenai Harbor Development Corporation. Motion was seconded by Commissioner.Wagoner. The motion passed unanimously. Attorney Schlereth introduced a plat of the area involved. Commissioner Williams asked if this was an approved plat. Attorney Schlereth said no, it had not been approved by the Borough. 7. Corrections and additions to the Option to Lease Tract D: Commissioner Williams said date of survey plat will be dated July 16 and July 17. Commissioner Ackerly asked if, when lease is signed Tract B& C will be part of Tract D. Attorney Schlereth answered that the City will have KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, 1979 Page 4 two leases with Kenai Harbor Development, and none with Roper, both 55 year leases. After one year, the old lease will be rescinded. Chair- m~n Pro Tempare Peterkin asked Attorney Schlereth if this is agreeable with Kenai Harbor Development Attorney Breck. Attorney Schlereth an- swered, yes, with an 18 month extension if needed. Mr. Dean asked the commission if the government was slow in granting permit, will the City give Kenai Harbor Development an extensian. Commissioner Burnett aske~ for how long. Commissioner ~illiams stated there was no way of predicting this. , Commissioner Williams asked Mr. Dean if his violation char~e with A~laska Dept. of Fish & Game l~ad been cleared up. Mr. Dean answered yes, Fish & Game has not contacted him. Fish & Game has a 15 day extension, and if he has not heard from them within that period, the permit will be issued. Commissioner Ackerly asked if there would be a reappraisal when all three tracts are combined, in one year's time. Attorney Schlereth replied that the practice with airport lands is an appraisal must be done six month's prior to signing and rates are charged on the new appraisal. Attorney Schlereth explained that the Department of Engineers has final approval of the tract after all agencies have passed their approval. The City has a booklet listing procedural steps required by the Dept. of Engineers. Commissioner Williams asked Mr. Dean for costs of the total project. Mr. Dean replied the original proposal was 6.8 million dollars. Chair- man Pro Tempore Peterkin noted the commission packet of 6-12-79 mentioned the cost may be close to 8 million dollars. ~ Attorney Schlereth noted that one year is not much time. Commissioner Williams replied the Kenai Harbor~Development Corporation has been work- ing on the project for some time, this should be enough. Chairman~Pro Tempore Peterkin noted the final proposal for the dock is not in the original p~^oposal. Attorney Schlereth explained that the coverall phrase in 3-d of the option should cover this addition. Mr. Dean said financing could not be obtained without the permit from the Dept. of Engineers. Chairman Pro Tempore Peterkin replied that the Option to Lease Tract D and papers from the City should be suffi- cient for financing. Commissioner Williams said part 4 of the lease will cover this, it can be expanded as needed for additional detail. Commissioner Tepp mentioned Kenai Harbor Development attorney Breck had said he only needed 12 months. Commissioner Wagoner read from the minutes of 6-26-79, confirming Breck's statement. Mr. Dean explained that Mr. Breck isn't dealing wi~h it every day as he is. Commissioner Wagoner said Attorney Breck wants a 12 month stipulation to hand to the financing institution. Commissioner Williams said the 12 month stip- ulation was necessary to protect the City and Kenai Harbor Development. Attorney Schlereth stated he needed a final~zed drawing rather than a prelim~nary drawing. Chairman Pro Tempore Peterkin said when the year KENAI ~ARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, 1979 Page 5 was up Kenai Harbor Development will submit a final plan to the comm- ission. ~A~ttorney S~hlereth said Kenai Harbor Development could change the plan as they go along if they stick to the original basic facilities. Chairman Pro Tempore Peterkin said Kenai Harbor Development had talked of roads, water and sewer, fish processing section, and a fish meal , plant. He said a gravel or green belt was needed. Attorney Breck had mentioned a small business area, this should be spelled out in the option. Commissioner Wagoner said a water supply must be in for fire protection, and a waste facility was important for longer boats. Commissioner Tepp said electricity was also needed. Chairman Pro Tempore Peterkin suggested the following be added to section 4: a. Road b. Water, sewer, electricity c. Adequate fire protection d. Harbormaster on facility Commissioner Burnett suggested two additional requirements: a. Surface soil and sub soil tested to meet city code b. Gravel road must meet city inspection Mr. Dean said the fi nal pl an wi 11 show aN ir~provements, but Dept. of Engineers will have to approve. Commissioner Williams suggested the Commission set up in the option a requirement that the commission review the plans intermittently as developed. Mr. Dean asked who would bear expense of changes, when the permit is issued, if commission makes the the changes. Commissioner Williams replied Kenai Harbor Development should have a preliminary plan. Mr. Dean said it had already been sub- mitted. Commissioner Williams answered that was not sufficient, the Commission wants to see the plans as they develop. Commissioner Tepp stated the Commission wants to protect the city, that Kenai Harbor De- velopment build a harbor we can live with. Mr. Dean answered that the Dept. of Engineers is very strict. If commission is involved, the preliminary plan will be changed. Commissioner Wagoner noted that in the commission meeting of 6-26-79 the Dept. of Engineers said they do not inspect, they assume the prospect will hire a 1icensed engineer. Mr. Dean said he had no objections to commission inspections, but with any substan.tial changes the permit must be changed. Commissioner Williams said the commission has approved t`he original construction proposals, but the buildings would need interim approval. Commissioner Burnett said Anchorage Port Authority has a resident engineer to approve building plans. Doesn't the Kenai Planning and Zoning Commission had final approval? Chairman Pro Tempore Peterkin replied Planning & Zoning approves plans first, then the Harbor Commission. Attorney Schlereth said this was a subdivision p1at, Planning & Zoning would be involved, for roads on1y. He would check as to the extent of their supervision. Chairman Pro Tempore~Peterkin said section~4 would have a sub heading. a. Commission will review plans at ~ach stage of development KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, 1979 Page 6 Mr. Dean asked if the commission would take the preliminary plan for their work session for presentation to Dept. of Engineers. Chairman Pro Tempore Peterkin had no objection, but as changes are made, commission wants to see them. Mr. Dean asked if the commission had any idea when water and sewer will be connected. Commissioner Williams said that from previous experience the customers must pay for it. Chairman Pro Tempore Peterkin said Kenai Harbor Development will probably have to put it in, and asked if the City would pay for it. Commissioner Williams replied, no, you just give it to them. Mr. Dean asked if there was anything coming through. Commissioner Williams answered, just as far as Beaver Loop. Attorney Schlereth said they must have water through their own lines for fire protection, the commission wants lines to the subdivision. Chairman Pro Tempore Peterkin said Coast Guard regulations stipulated any container over a certain size will require a water facility. Attorney Schlereth asked if sewer lines would be required. Chairman Pro Tempore Peterkin replied the Coast Guard would more adequately cover these requirements than the commission. Attorney Schlereth said if Kenai Harbor Development Tract D did not go through, Tracts B& C must complete their development. Commissioner Wagoner said the Council has the right to extend the lease. Chairman Pro Tempore Peterkin said the Council will go through the comm- iss~on. Commissioner Williams said the commission should be able to give Kenai Harbor Development the freedom to extend if the project is almost complete, but must still protect the City. Commissioner Ackerly said the progress reports will cover that. He suggested the progress reports be quarterly,supported by supporting documents and pictures. Commissioner Williams suggested to be added to section 4-f: "unless the time therefore has been extended by the City." He stated the option would expire in December, we should have a final progress report. Chairman Pro Tempore Peterkin said 90 days before the end of the lease, the final decision will be made on the 1ease. Commissioner Williams requested Attorney Schlereth add to 4-f: "Quarterly progress reports with documents will be submitted to 12 month deadline." Commissioner Williams said the title insurance company can insure against preference rights claimants for a fee. Chairman Pro Tempore Peterkin requested the administrative assistant contact an insurance representative to speak to commission before final completion of the ordinance. Attorney Schlereth explained that all lease rights will be approved by the commission. The lease rate is set at 6/ of Fa~r Market Value, the same as airport land, with a re-appraisal every five years. Commissioner Williams asked if the payment was payable monthly or in advance. The $25 maximum was not applicable, the charge was set on a monthly basis. He requested sales tax be included in the lease, but not property tax. Attorney Schlereth will add this. Attorney Schlereth said he would also check with the Borough if the $25 maximum will apply for thi s type of opti on to 1 ease. `~ ~ ,M ~ ~ ,.~ 4 KENAI HARBOR COMMISSION REGULAR MEETING TUESDAY, AUGUST 28, ~979 Page 7 Mr. Dean asked if the 6/ Fair Market Value was for unimproved ]and. Attorney Schlereth replied it d7d not include bui1dings, but did apply to water and sewer. Commissioner Williams explained that Mr. Dean would pay assessments of water and sewer, and user fees af~erwards. Mr. Dean asked if permit was refused, is the fee refundable. Chairman Pro Tempore Peterkin said no. The commission then approved the ordinance for presentation to Council. Commissioner Wagoner asked if Salamatof lease was approved, could the BLM letter ~regarding Kenai Narbor Development lease be circumvented. Chairman Pro Tempore Peterkin replied all development would be hand.led in the same manner as Salamatof. Mr. Dean asked if the option would be together by next Harbor Commission meeting. Chairman Pro Tempore Peterkin said yes. Phase II of the ordinance was discussed. Attor.ney Schlereth explained the harbor land lease is similar to the airport land lease mainly be- cause it gives the lessee greater ability to apply for financing. The difference is that there is very little harbor land. The Commission can set fees on the land to protect the public, but the lessee must still get fair return on his investment. The Commission acts somewhat as a~tilities commission. Chairman Pro Tempore Peterkin suggested obtaining an accountant to set fees. Commissioner Burnett said the Anchorage Port Commission wrote their own tariff, based on costs of operating dock. Chairman Pro Tempore Peterkin reminded him the City would not~ be running the dock. CQmm ~ssioner Burnett explained the.City would still have control over ~a~ ~e~c. Commissioner Williams sa~d we will need fire fighting equipment on dock. We should establish rent low enough for boat owners to go in, that will give the lessee incentive to ~develop the rest of the land. Commissioner Wagoner stated that if the proaect fails, we must complete i t. Attorney Schl ereth sa i d Dept . of Eng i neers wi 17 ~rec~u ~~re ~e comp1 ete the pro j ect or ref i 11. Cha 1 rman P~^o Tempare Peterk~ n~sked i f the City was liable if they "took the money and 1eftR" Can t~e financ~ng institution t~ke over? Attorney Schlereth ~^epl~ed that the C~t~r has contr~l oue~^ the 1 and, but i f Kena~ Harb~r Deuel opment goes "'be1lyAup" the bank can sell to another buyer. Commissioner Ackerly asked if public use was spelled out. Attorney Sch1ereth said yes, it was tailored to each lease. Chairman Pro Tempore Peterkin asked if Kenai Harbor Development lease goes, will we use a regular lease. Attorney Schlereth repl~ed that we will write a special lease that will conform to a regular lease. Chairman Pro Tempore Peterkin asked Comr~issioner Burnett on the Anchorage Port Commission, the other ports could not undercut, how did the Anc~orage Port Commission control them? Commissioner Burnett replied Anchorage has total authority over all ports. KENAI HARBOR COMMISSION REG~LAR MEETING TUESDAY, AUGUST 28, 1979 Page 8 Commissioner Williams asked Mayor 0'Reilly if we establish a port authority, does that mean it is not answerable to the Council. Commissioner Bur- nett repl~ed Anchorage Port Authority made the rules and were ratified by Council. Commissioner Ackerly asked Attorney Schlereth to get the anchorage Port Author.ity rules. Chairman Pro Tempore Peterkin asked to have copies made for the commission. He also asked the administrative assistant and the attorney to develop a map showing existing harbor to city limits, color coded to show city property, private property and government ~ property. Also a list of all private property_owners, and all city property under lease and not under lease. This should be ready by the time the ordinance is complete. Commissioner Williams said Galliett did a set of maps approximately 1968 - the City has them. Commissioner Ackerly asked when the commission will be into bluff erosion. Attorney Schlereth replied it's not the commission's problem until it falls in. E. NEW BUSINESS The Kenai Split Subdivision: Chairman Pro Tempore Peterkin ~aid the motion from last meeting states no new business until the ordinance is complete. ~Je should send a representat~ve to the Planning & Zoning meeting to find out what they want and explain our position, we should be finished in four more weeks. Commissioner Wagoner suggested Planning & Zoning send a representative to our meeting, or Jim Hendricks. Attorney Schlereth mentioned Jim Hendricks was a Borough employee. Chairman Pro Tempore Peterkin asked the administrative assistant to call Sol Raymond, chairman of the Plann- ing & Zoning commission to find out exactly what they want. He said we would ask Sea Catch to send their representative and also request Jim Hendricks to attend the Sept. 11 meeting. Chairman Pro Tempore Peterkin stated that since this was the first meeting where all members were in attendance, election for chairman should be held. Commissioner Ackerly moved, seconded by Commissioner Burnett that Bob Peterkin be elected. Nominations were closed, the motion passed un- animously. Commissioner Wagoner asked if we needed a vice-chairman. Attorney Schlereth replied we can make rules regarding this as needed. Commissioner Cone moved~seconded by Commissioner Burnett that Commissioner Williams be elected. Nominations were closed, the motion passed unanimously. Commissioner Wagoner asked if item #16 in the plat commissioner meeting regarding the Sea Catch lease was passed. Commissioner Williams ex- plained the procedural steps for a preliminary plan. This plan must go to the Borough, then to the City for approval. The next meeting will be Sept. 11, 1979 at 7:00 PM at the Public Safet~y Building. ` , . ~ M F', ., ~ ~;o ~„' .,~ KENAI HARBOR COMMISSION REGULAR MEETTNG ~ AUGUST 28, 1979 Page 9 Meeting adjourned at 11:15 PM. Janet Whelan Administrative Assistant ,