HomeMy WebLinkAbout1979-09-25 Harbor Commission Summary..k ~' ~ ~ ~
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KENAI HARBOR COMMISSION
REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979
AGENDA
_______
PLEDGE OF ALLEGIANCE
A. ROLL CALL
AGENDA APPROUAL .
B. MINUTES '
.
1. Minutes of the regu~ar meeting of September 11, 1919.
C. CORRESPONDENCE
1. Kena~i Peninsula Borough - Open house to discuss Port and
Harbor Development
D. OLD BUSINESS -.
1. Option to ~ease Tract a ,
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2. Kenai Spit Subdivision ~
3. John Merrick, BLM - Change of Authorized Use of Land ~
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4. Merger of Harbor, Airport Commissions to Transportation --
Commission
5. Tidelands Ordinance - Phase III, Application Forms
,= KENAI HARBOR COMMISSION ~
REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979 ~
A. ROLL CALL
PRESENT - TOM ACKERLY, CHESTER CONE, BOB PETERKIN, TOM WAGONER,
JOHN WILLIAMS, EX-OFFICIO MEMBER BETTY GLICK
ABSENT - BILL BURNETT, BOB TEPP, EX-OFFICIO MEMBER MAYOR 0'REILLY
1. AGENDA APPROVAL
#3, John Merrick, BLM - Change of Authorized Use of Land,
was deleted from agenda.
B. MINUTES - Minutes for the meeting of September 11, 1979.
Commissioner Wagoner asked if the insurance coverage as listed in
11.20.400 of the lease was researched. Atty. Schlereth replied that
he had asked our agent, Clary Insurance, and had been to1d that this
was sufficient. He a1so said that the agent usually checks the ins-
urance coverage in each lease.
Minutes were approved as presented.
C. CORRESPONDENCE
Kenai Peninsula Borough, open house. Chairman Peterkin requested all
commissioners attend, if possible. The Borough wants total authority
over all the Peninsula harbors. It is asking for the "blessing" of
the cities, then would go for a vote from the peop1e. Commissioner
Wil1iams~stated Kenai is strong enough to "go it alone." Commissioner
Wagoner felt that if the Borough had control, they could do anything
they wanted. Chairman Peterkin said some of the proposa1s of the
planner are:
1. Barge service between Kenai and Anchorage.
2. Promotion of barge service.
3. A dock in Seward.
He felt both the Teamsters and the Longshoremen would be involved
in a barge service arrangement. There would also be a Port of Entry
problem.
Commissioner Cone state he felt the plan was a waste of money, all
the material in it was obvious information. Chairman Peterkin said
the plan cost the Borough $160,000. Commissioner Cone and Commissioner
Ackerly asked how they could spend that much maney and miss Kenai
completely. Chairman Peterkin replied it was deep water draft vs
dredging in the river. The report to be given to the public lists
a large boat harbor in Homer. Commissioners Ackerly and Williams
asked if the planners would listen to us at the meeting. Chairman
Peterkin replied he didn't think anyone was that enthused about it.
The private companies tore it apart at the meetinq. One examp"le in
the plan was that the Coast Guard would tear all the docks out, the
planners did not know this. Commissioner Wagoner noted the recreational ,
boating costs were in error, and the statement, "fish processing would
KENAI HAR60R COMMISSION
REGULAR MEETING ~
TUESDAY, SEPTEMBER 25, 1979 Page 2
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have little effect on ports," was a]so wrong. Commissioner Williams~
said the planner must have been unaware of the studies made on road
closure. There has been a money loss from ~oats in that time. Comm-
issioner Wagoner noted most of the people coming down are using boats.
If we don't go to the meeting, they will think we're happy with the
plan. He suggested Cha~rman Peterkin send a letter ta Mayor Gilman
expressing our disp1easure with the plan, with a copy to the Council.
Commissioner Cone asked when the plan was final. Chairman Peterkin
didn't know. Commissioner Williams asked what the Borough plans to
do with the plan. Commissioner Ackerly thought there was something
on the ballot. Chairman Peterkin stated the plan suggests all cities
should put all~ power into the Borough, the Borough could centralize
a11 action. Commissioner Wagoner felt it was a direct threat to the
cities. He also asked if the Borough takes over control of the docks
and harbors, who would set the amount of tax, cities or the Borough?
Commissioner Williams said this was another example of dilution of home-
ru1e power. ~
D. OLD BUSINESS
1. Option to Le~se Tract D
Chairman Peterkin asked Mr. Dean if he had anything to add to the
discussion. Commissioner Wagoner noted we were under motion not to
discuss it until Mr. Roper comes in, he would come to the meeting of
October 9, 1979.
2. Kenai Spit Subdivision
Mr. Bryson of the Planning & Zoning Commission spoke. He explained
their concern is that both commissions are involved, they just want
a standard review. Chairman Peterkin asked if the Planning & Zoning
Commission wanted a member of the Harbor Commission to attend a P&Z
meeting to discuss it. Mr. Bryson said yes, P&Z wanted:
a. Concept Lease reviewed by both commissions and the Dept. of
Engineers .
b. Have the Concept Lease incorporated into the harbor ordinance.
c. Have the Council review the lease.
He further stated these steps could be reviewed by the P&Z Commission.
Commissioner Williams said he still didn't know what we were supposed
to do with the lease. We still hadn't had an application or anything.
He also noted that in the lease the Borough showed water and sewer,
there is none. Chairman Peterkin asked Atty. Schlereth if there was
a procedure outlining the Harbor Gommission, Planning Commission,
Borough Planning ~ommission and the City Council on lease of har~or
lands. Atty. Schlereth replied the application went first to the
P&Z and then to the Harbor Commission. Mr. Bryson said P&Z had app-
roved the Concept Lease. Atty. Shlereth explained that the Co"Uncil
approved the lease, the same way airport land leases have been handled.
P&Z recommends to the Council after they rev.iew the app1ication.
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KENAI HARBOR COMMISSION
~~ REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979
Page 3
~ Chairman Peterkin asked Mr. Bryeon how long ago the lease was pro-
posed. Mr. Bryson replied about one month ago. Atty. Schlereth
said under present law they have six months before approval. Comm-
issioner Wagoner noted that Tract l is being built on already. He
asked Mr. Bryson if Sea Catch has a lease on that lot. Mr.~ Bryson
didn't know. Atty. Sch1ereth said he didn't think so. Mr. Bryson
explained that land was not surveyed, it was a preliminary plat only.
Commissioner Williams said the original lease had 12.2 acres, new plat
has 40 acre parcel. They want an additional lease on tract l. He also
confirmed deve1opment has already started on the land not leased.
~ Commissioner Wagoner asked Councilwoman Glick if the Council had approved
the lease yet. Councilwoman Glick said she didn't know. Attv. Schlereth
said he would check. ,
3. Merger of Harbor, Airport Commissions to Transportation Commission.
Chairman Peterkin said Mayor 0'Rei11y could not come, but will come
to the meeting of October 9, 1979. Commissioner Williams noted that
the Borough had deleted us entirely from the Port & Harbor Development
Plan, this shows the importance of a transportation commission. Chair-
man Peterkin said he didn't agree entirely, the report was not done
,.,-, by the Borough, but for the Borough. They don't necessarily agree.
~~~~ Commissioner Williams said Kenai has the finest potential on the Pen-
~ },;` insula, or in the State. Commissioner Ackerly asked if there was ever
an a~rport commission. Councilwoman Glick said yes, it was in the
early 60's, City Manager Harrison deleted it. Commissioner Wagoner
: said we wi11 need more definition of what is needed. Chairman Peter-
kin said the Council would have to start it. It would act the same
as the present Harbor Commission, he also suggested the need of funds
to operate the commission. Commissioner mentioned the $600,000 avail-
able in Juneau for a harbor project. With a transportation commission
we could get the funds, we could build a city hall and combine it with
commission projects. Chairman Peterkin asked if there was some dis-
cussion on this some time ago. Councilwoman Glick said the funds
wou1d have to do with harbor development, and must have a feasibility
study. Commissioner Williams said we need ramp space at the airport
as we11 as harbor development. We could justify it and lease it to
the City, calling it a harbor building. Commissioner Wagoner asked
Atty. Schlereth to research legislation, there should be a bi11 re-
qarding this. He thought it was about 1974. Commissioner Williams
noted that the longer the funds sit there, the more it is reduced.
We should check into it before it is reduced further. Commissioner
Ackerly asked if the Council had discussed it. Chairman Peterkin
replied no. Commissioner Ackerly asked if they could give us guide-
lines. Commissioner Williams suggested we expand the Harbor Comm-
ission to 14 or 11 people as a transportation commission, the extra
being general aviation people. Chairman Peterkin suggested we check
with Mayor 0'Reilly at the Oct. 9 meeting.
4. Kenai Spit Subdivision
. ,
Upon the return of Atty. Schlereth with the information needed, the
commission returned to the Kenai Spit Subdivision. Mr. Bryson ex-
plained P&Z had approved the Concept Lease only, no final lease had
KENAI HARBOR COMMISSION
REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979
Page 4
been approved. Atty. Schlereth confirmed this. Mr. Bryson said any
construction is unauthorized. Chairman Peterkin asked what is the
procedure if there is encroachment. Atty. Schlereth replied the Act-
ing City Manager should check with Doris Lashley. If the construction
was done intentionally, it is trespass. If unintentional, the simplest
solution is to change the lease. It might take a survey. Mr. Bryson
asked if the Commission was satisfied with the right-of-way. At the
time of the review, P&Z had not concerned itself with specifics. Com-
missioner Williams asked if access was across the tidal flats, Mr. Bryson
replied yes. Atty. Schlereth said both cammission should advise the
eouncil on roads, etc. Chairman Peterkin suggested that P&Z advise
on roads, Harbor Commission should do the master plans. He asked how
long the road had been there, Commissioner Wagoner said approximately
1968 to 1970. Mr. Bryson asked if the road had been modified since
then. Commissioner Williams said the road was built for access to
Union Oil drill pad, no one in the Commission knew definitely. Chair-
man Peterkin asked Atty. Schlereth if the lease would go to the Council
before it goes to the Harbor Commiss:ion. Atty. Schlereth replied no,
it should always go to P&Z first, with advise from the Harbor Commiss-
ion. The ordinance requires this. Chairman Peterkin asked who has
the land surveyed. Atty. Schlereth replied the administration does
before it goes to P&Z. Chairman Peterkin asked if the Kenai Spit
Subdivision has been been surveyed, Atty. Schle~eth said he didn't
know. Mr. Bryson suggested the Harbor Commission review the lease,
then the administration could do the survey. Chairman Peterkin said
the City should check it first. Atty. Schlereth agreed, if there's
any encroachment, the administration should check it first. Commissioner
Williams proposed the administration prepare a fact sheet to bring
to the next meeting, the application could be drawn wrong, she couldn't
get a permit for gravel fill without a plan developed. Commissioner ~
Cone said an inspector checked it last summer.
MOT ION
Commissioner Williams moved, seconded ~y Commissioner Wagoner that the
City Administration be directed to prepare.a fact sheet as to past
history of this 1ease ap~lication and to detail what has been done
up to this point. The City Administration will make a visual inspection
of the property in question to determine if encroachment has been made
on property not included in the present lease, namely Tract l, Kenai
Spit Subdivision:
Commissioner Ackerly suggested road placement should be check also.
Commissioner Williams concurred. The motion passed unanimously.
Chairman Peterkin asked Atty. Schlereth to give the motion to Acting
City Manager Charles Brown. The Commission will give it to Mr. Bryson
when it is complete.
5. Option to Lease Tract D
,
Chairman Peterkin asked Mr. Bryson to discuss this. Mr. Bryson said this
may not be the best use of the land, P&Z wanted that brought to the
i
KENAI HARBOR COMMISSION
REGULAR MEETIN~
TUESDAY, SEPTEMBER 25, 1979
Page 5
attent~on of the Harbor Commission,d~es the cammission want to tie up
that much land without access? Commissioner Williams asked if the Kenai
Harbor Development Corp. has brought the concept of the marina to the
P&Z? Mr. Bryson replied, yes, but he didn't know if it was the latest.
He noted the development from the highway to the river will limit access.
Chairman Peterkin said a perimeter road was proposed in the recommend-
ations. The Corps. of Engrs.~has recommended three large development
parcels rather than 12 smaller ones. The Harbor Commission has spent
many hours on it and is satisfied w~.th it.
COMPLETED FOR COMMISSION MEETING OF 10-23-79
Commissioner Williams continued: the perimeter road mentioned above
is south of the tract D, the southern half will be held until the north
portion is developed. Mr. Bryson asked if a water course is proposed.
Commissioner Williams replied yes.
6. Chairman Peterkin reviewed pending actions to be done for this
meeting. He requested admin. assist. J. Whelan and Atty. Schlereth
have the application forms completed and ready for review at the meeting
of Oct. 9, 1979.
7. Atty. Schlereth reviewed the second draft of the lease.
r 11.20.070: #3 will be added, All lease applications will go to Council
~~ for approval. The section on public hearing will be left out, it is
not really a lst-come, lst-served basis, the Commission can decide
the best use. He felt the last ordinance had too many hearings.
Chairman Peterkin stated the Council felt al~ hearings should be at
this level. Atty. Schlereth concurred. He felt the Harbor Commission
meetings are open meetings, and the applications will still be on the
Council aqenda. Commissioner Wagoner asked if the City co,uld abrograte
responsibility to the Commission. Atty. Schlereth explained it was not
abrograted, P&Z still has to review & approve, and the Council still
makes the deterrr,ination. Commissioner Ackerly suggested the commission
should have a check list to refer to when an application is received,
listing all steps necessary in submittal of an application. Chairman
Peterkin asked Atty. Schlereth if there would be any public notification.
Atty. Schl~reth replied only the notification of lands being available
for lease, not the specific lands.
11.20.050: Commissioner Williams noted, regarding the $100 filing fee,
this should cover advertising. There should be a notice o~ final
determination hearing, this is the only time the public can come back.
to us. The commission agreed, Atty. Schlereth will change this.
11.20.100: Atty. Schlereth said the appraisal requirement was added,
with the assista~ce of an appraiser. Commissioner Williams noted that
the City will derive much income from taxes, this should be considered
in the appraisals of leasing. Atty. Schlereth said the Borough wi11
tax the land with buildings, he will straighten this out with them.
11.20.120: A development plan was added. Commissioner Williams noted
the number of years was left blank, each lease wi11 be set indivi~dua11~.
KENAI HARBOR COMMISSION
REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979
Page 6
11.20.360: Atty. Schlereth said our ins. agent, ~lary, felt the
limits of 250(public), 500 ~ag~regregate~, and 100 ~property) are
sufficient. Chairman asked Atty. Schlereth if Mr. Roper had suff-
icient insurance. Atty. Schlereth will check. He also noted pro-
ducts and liquor liability were added.
11.20.420: Public use vs private enterprise makes this section
difficult to define, as explained by Atty. Schlereth.
11.20.440: Atty. Schlereth said proposed changes in the use charges
shou1d be decided by the commission. Commissioner Wagoner said the
commission should set forth services they will have, and add a proviso
that access be provided at certain times of the day. Commissioner
Ackerly asked who would enforce it. Commissioner Williams said it is
up to the operator of dock to provide space for boat tie-up. He
questioned if we should tie the rates to percentage, it is hard to
project what the profit could be, and inflation is hard to predic~.
Atty. Schlereth replied the best way is to let it find its own level~
but with one large operation, there is a monopoly. Chairman Peter-
kin suggested the document should be open-ended, we aren't sure if
the commission wants to set the rates, there are other problems to
solve first. Commissioner Williams replied we should have the abi1ity
to check into the problems. Chairman Peterkin said he doesn't think
we can make determinations yet. Commissione.~ Acker1y suggested we
leave out the lst paragraph. Chairman Peterkin agreed, as long as
the commission retains enough power to control abuse by the lessees
without having to go through Council. Commissioner Ackerly suggested
in the 2nd paragraph, line 1- change "may" to "will," and add "subject
to review" at end. Commissioner Williams suggested adding, "Commission
may review all rate structures at any time to determine if t~hey will
be detrimental to public." Atty. Schlereth said we should review
finances at the time of application, this will make a differe,nce in
the amount of rate set. Later on would be too late. Commissioner
Ackerly said the Open Market Concept wi11 keep the fees down. The
~ommission discussed the rate structures of Homer. Commissioner
Williams said he would like to see the schedule of amortization on
their development loans. Commissioner Wagoner replied that Homer &
Seward are old harbors, built with public funds, and was an entirely
different situation. Commissioner Ackerly noted 11.20.050 will cover
this. Chairman Peterkin said the bank or financing institution should
have already checked rate fees, and development plans. Commissioner
Williams compared this to Anchorage, where all rates are set by the
City. Commissioner Wagoner replied that this would never work, some
docks are already set up. Commissioner Williams asked Mr. Dean if
his loan was based on this proposed rates. Mr. Dean replied yes,
there is no money in slip charges, light and heavy industrial will
support the project. Mr. Dean's rates are higher than those of Homer.
Chairman Peterkin referred back to 11.20.210. Commissioner Ackerly
stated the City should be l~able for covering all required rules and
ordinances. Chairman Peterkin replied the City cannot guarantee that
all codes and rules are covered. Commissioner Williams noted this was
a way for the City to receive revenue, water & sewer tie-up fees are
another example. He felt alot of inspection fees are hard to justify.
KENAI HARB~R COM~ISSI4N
~ REGULAR MEETING
TUESDAY, SEPTEMBER 25, 1979 Page 7
Atty. Schlereth said he would check into municipal liability for
codes and rules requirements.
Commissioner Ackerly noted in 11.20.450, we should strike out
"reasonably." Atty. Schlereth will change this.
8- The list of set net owners was reviewed.
9- Commissioner Ackerly asked if we could have the applications
stamped "harbor" to differentiate .them from the airport leases.
70 - The harbor commission section of the Municipal Code was reviewed.
Atty. Schlereth said it was outdated, and should be changed.
Chairman Peterkir~ said the next meet~ng would be October 9, 1979 at 7:00,
at the Publ i c Safety Bui l di ng.
Commissioner Wagoner noted the set net map, tract 4, listed a"last known
occupant," this is an illegal area. ~
The meeting adjourned at 10:30 PM.
Janet Whe~an