HomeMy WebLinkAbout1980-01-08 Harbor Commission SummaryREVISED AGENDA - JANUARY 4, 1980
KENAI HARBOR COMMISSION
P.O. Box 580
Kenai, Alaska 99611
REGULAR HARBOR COMM ISS ION MEET I NG:
January 8, 1980 - 7:00 p.m., at
the Publ i c Safety Bui 1 ding
Kenai, Alaska
HARBOR COMMISSION MEMBERS:
Mr. Robert Peterkin, Chairman
Mr. John Wi 11 iams, Vice-Chai rman
Mr. Tom Ackerly, Member
Mr. Wil 1 iam Burnett, Member
Mr. Bob Tepp, Member
Mr. Tom Wagoner, Member
EX-OFFIC IO MEMBERS:
Mrs.
Mr.
Betty Glick, Councilwoman
V i nce O' Rei 1 ly, Mayor
A-G-E-N-D-A
1. Call to Order
2. Pledge of Allegiance
3. Roll Call
4. Approval of Minutes - December ll, 1979
e
Introduction of Guests
(a) Colonel Lee Nunn,
District Engineer, Corps of Engineers
(b) Jim Swalley, Airport Operations Manager
6. Communications
From:
Letter of Resignation - Chester Cone
David' L. Robbins, Chief, Construction/Operations Division
Senator Mike Gravel
Clarence L. Bingham, Regional Commissioner- Ref: Port of Entry
Joan L. Specking - Alaska Fisheries Development Foundation, Inc.
7. Reports
8. Old Business
(a) Preparation for January 22, 1980 Meeting With LNG Representatives
9. New Business
10. Persons Present Not Scheduled To Be Heard
ll. Adjourn
KENAI
HARBOR COMMISSION MEETING
PUBLIC SAFETY BUILDING
KENAI, ALASKA 99611
January 8, 1980
HARBOR COMMISSION MEMBERS:
EX-OFFICIO MEMBERS:
STAFF PRESENT:
OTHERS PRESENT:
CALL TO oRDER®
ROLL CALL:
AGENDA APPROVAL:
APPROVAL OF MINUTES
DECEMBER 11, 1979
Mr. Robert Peterkin, Chairman
Mr. John Wi 11 i ams, Vi ce-Chai rman
Mr. Tom Ackerly
Mr. Wi 11 iam Burnett
Mr. Bob Tepp
Mr. Tom Wagoner
Mrs.
Mr.
Betty Glick, Councilwoman
Vince O'Reilly, Mayor
Mr. Vi nce O' Rei 1 ly, Mayor
Captain Wayne'Reynolds, Corps of Engineers
Mr. Jim Swalley, Airport Operations Manager
iMr. Jim Hendricks, Borough Senior Planner
Mr. Bob Roper
Mr. Miles Dean
Commissioner Robert Peterkin called the meeting
to order at 7:10 p.m.
'Tom Ackerly, Present
Wil 1 iam Burnett, Present
Robert Peterkin, Present
Bob Tepp, Present
Tom Wagoner, Present
John Nil 1 iams, Present
The agenda for January 8,
the fol 1 owing changes;
1980 was approved with
INTRODUCTION OF GUESTS#5 - 5(a) Colonel Lee Nunn
........
to (a) Capt. Wayne Reynolds
m
COMMUNICATIONS#6 Add Letter from Don Statter
* Input from Mayor O'Reilly
NEW'BUSINESS#9
_ ,
Chairman Peterkin extended an
invitation to members of the
Harbor Commission to attend a
luncheon in Anchorage, January 9,
with Anchorage Legislatores
regarding Capital Improvements.
The minutes of December l l,
as written.
1980, were approved
U $. CORPS OF ENGINEERS:
Captain Wayne Reynolds, U.S. Corps of Engineers, Report
Section of the Planning Branch, spoke to the Commission.
His understanding was that the Commission had some new
information for the Kenai River Study. He said that there
were two authorities that they could use to build a small
boat harbor. The first is Congressional Authority, and as
far as cost construction we can expect 10 years. The
second, is Section 107, Continuing Authority Program that
the city or borough could act on. Section 107 is limited
to 2 million dollars. Under this authority construci~ion
could be completed in a 3 year time frame. That would, of
course depend on the availability of funds Even if it was
approved as a project, that does not mean that the funds
would be available. The objective of the Corps involvement
is not to compete, but step in when private sectors, local
government, city or state does not have enough funds. They
can only build breakwaters, entrance channels and turning
bases. He then referred to The Kenai River Review Study
done by the Corps of Engineers, Cook Inlet Shoal Alaska-
Feasibility Report done by the Corps of Engineers, and one
done recently by the U. S. Fish and Wildlife Service on
the Kenai River Flats. He then went on to discuss the
1976 report, which was Congressionally authorized. In that
study they elected eight alternatives and studied these to
determine they:re feasibility, Of those alternatives the best
was the benefit - cost ratio of ,44. Costs more to build
than the benefits accrued. ~n our discussion later on this
evening you can tell me things that increase the benefit,
or things you know might decrease the cost. Costs were
high due to annual maintenance because of the silt in the
river and dredging. The first cost in 1976 was $2,177,200.
In the letter we received from you I got the impression that
you had information concerning the benefit increase. The
benefits are damages that will be prevented by building
a small boat harbor. The specific areas of benefits are:
harbor of refuge, reduced delay time, (time it takes the
fisherman to off load his boat), damages prevented, re-
duced storage costs, increased fish catch (increased yield
without loss to other areas'), and recreation.
Commissioner john Williams pointed_out that there has ..
been a fleet increase in Kenai, due to disaster (c~n ~ --
nery fire).. Captain Reynolds said he believed that would
be considered a benefit if the cannery would not be rebuilt.
He then asked for any questions that the Commission might
have.
Chairman Peterkin said he would like to say a few words,
before the meeting had a open discussion, on the general
over all feeling of the community and for the commission.
The Kenai River is probably the largest salmon run capacity,
not withstanding, the tremendous number of salmon that
CHAIRMAN PETERKIN'
(continued)
go up the Kenai River for Sport fishing. The Kenai River
has been classified as a navigable waterway all the way to
Kenai Lake. There approximately 400 boats bringing their
catch into the mouth of the Kenai River. The congestion
in the mouth of the river is just unbelievable, not only
when the boats are coming 'in to unload their fish, but when
they are not fishing, boats are morged in the mouth in all
areas. It makes it almost impossible to move around. There
is no way to get from the boat t~ the shore with-
out a pair of hip boots and walking knee deep in mud. There
are no facilities to tie up, no facilities to work on your
boat at all, only a few sheet piling docks that people
pull up and tie on to. ! think that a boat harbor facility
is one of the single items that is slowing the entire
fishing industry in the Kenai River down because of the
congestion. No cannery is willing to spend any type of
money or i~o do much improvement over what there is, because
of the mass confusion.and limited facilities. This is not
a problem that developed this year or last year, we have
been living with this problem since there was a Kenai,
probably. It just gets worse as years go on because we
find ourselves now instead of 20 ~oot boats we're running
30-50 foot boats and we"re getting into aloto of power and the
larger the boat of course, the more room it takes up.
Chairman Peterkin then turned the meeting over to Commissioner
Tom Wagoner and Tom Ackerly.
GENERAL D I SCUSS ION
OF CORPS STUDY-
Commissioner Wagoner referred to the letter he wrote to
COlonel Nunn. From the commercial aspect there were some
points that would have a bearing on the ratio. When the
Corps of Engineers did their report the average commercial
fishing boat was listed as 20-25 feet. Larger boats are
now being used. Value listed was very low, about $18,000,
now we have boats that value $60,000 to $120,000 and more.
Captain Reynolds referred to the~1976 Study, pages 22 &
23 and made the point that 'damages to the boats is what
we are talking about. He said these figures should have
been coordinated with us, he did not know if they were.
Chairman Peterkin explained that the Harbor Commission was
not quite a year old and then asked Mayor Vince O'Reilly to
elaborate. Mayor O'Reilly added that prior to the Harbor
Comm.~ission there was only an ad hoc group, Now the City
has an ordinance (11.10.010) requiring a Harbor Commission.
It is'a change the Captain should be aware of.
Chairman Peterkin commented that this Corps of Engineers
Report has cut' off the City in every available instance for
financing for harbor development, because everybody refers
to this study.
Commissioner Wagoner referred to page 17 of the report
under the title Fishin~ Craft. It estimates 400 boats,
while the actual figure for use permits for salmon alone
is 540. That does not include halibut, which has more than
double the salmon Permits. He did a random count and got
a fairly accurate figure of over 350 boats dry docked in
Kenai right now.
TRANSPORTATION
COMMISSION-
(Continued)
COMMUNICATIONS-
RECESS'
RE-CONVENE
REPORTS'
TRAC-T A'
This commission will be considered the transportation
authority and wil 1 receive al 1 ,reports', The Mayor would
welcome input in selecting members.
Jim Swalley went on to explain that he· approached the
Mayor to develop an Ai.rport Commission and it eventually
developed into the 'idea of the Transportation Commission.
He would like the Harbor Commission's help and suggestions.
Commissioner Williams commented that 3 members of the
Harbor Commission were on"the Airport Advisory Committee and
new members should be air'port orientated.
Chairman Peterkin thanked Mr. Swalley for attending the
meeting and giving his comments to the Commission.
Communications were received from'
Chester Cone - Letter of Resignation
David L. Robbins, Chief, Construction/Operations Division
Senator Mike Gravel
Clarence L. Bingham, Ref~ .Port of"Entry
Joan L. Specking - Ak. Fisheries Development Foundation, Inc.
Don Statter, Director - Div. of Harbor Design & Construction
There was a general discussion of Clarence Binghams' letter
on prerequisites to a Port of Entry and how Anchorage,
Valdez and Fairbanks were made Ports of Entry. Commissioner
'Burnett.agreed to provide an outline on the procedures,
for the next meeting and will contact customs for a list
of Port of Entry. It was agreed that Charles A. Brown
should wait for more information before answering letter.
There is to be a letter sent to Chester Cone thanking
him for his services on behalf of the Commission'
Concerning Don Statters' letter it was agreed that
Mayor O:Reilly would construct a letter in reply to
Mr. Statter~s letter of January 2.
At l l:O0 p.m. Chairman Peterki~ called a 5 minute recess.
At l l'05 p.m. the Harbor Commission re-convened in
regular session.
Commissioner Tepp reported on his rematch with Cordova.
Funding was done through Don Statter's office and
State Representatives. Builders industrial park is all
leased, they do not have fuel "deal" because of spillage.
There were comments on silt and ice surveys.
Chairman Peterkin referred to the December l l minutes
regarding Tract A. (_It was requested then that the
Acting City Manager try and find the amount of money
GENERAL D I SCUSS ION
OF CORPS STUDY:
(Continued)
There was some discussion as t~ the number of boats
the Kasilof River handles. We are waiting the resUlts
of an inspection by the Coast Guard on this.
Commissioner Tom Wagoner told of an instance where a life
could possibly have been saved, had there been a harbor.
He then refered to page 22 where it says "Private industry
elected to go elsewhere". I think that is an assumptive
statement. This helps negate development. It is very~
economically feasable to charter out of the Kenai River -
but you do. need a docking facility and protective harbor.
Fire loss would be lower with equipment to put it out. I
have seen 3 boats in the Kenai River burn, because the Fire
Department could,~nt reach them.
Commissioner Tom Ackerly added that on the river itself
there are 5 canneries, but there are others located away
from the river that must be off loaded on the river. . ....
The number seems to be increasing with the canneries'~
located down Kal ifonsky Beach Road and out the North Road.
He then referred to a question asked by Mayor O'Reilly
earlier as to whether the value of the harvest meant,
the number~of fish or the dollar value. Captain Reynolds
mentioned~..that it would be dollar value. Commissioner
Ackerly mentioned the number of complaints brought to the
Commission regarding damaged fish. With less handling we
could cut down on the damage to the fish.
Commission Wagoner brought up the situation that developes
when the tenders pick up and deliver the loads. They must
wait 2 - 4 hours, 6 - 8 hours if the tide is wrong. When
the tenders get into the river it is filled with fishing
boats and it is especially bad with high tides. The
Harbor Commission also had complaints on the location of
buoys in the River.
RECESS:
RE-CONVENE
At 8:00 p.m. the meeting stopped while Tom Ackerly and
other members showed Captain Reynolds pictures of the
mouth of the river and canneries, and there was general
discussion of the pictures and problems of the Kenai River.
At 8:10 p.m. Chairman Peterkin called the meeting back to
order.
Commissioner Peterkin described another problem of the
area. Homer, Seldovia, Seward and Whittier boat.harbors
are filled to capacity with years of waiting lists. All
of these faciliti.es are now in the process of dramatically
enlarging the facilities. Whittier is also trying to put
one in Shotgun Cove. This rubs the people in the Kenai
area the wrong way because we don't have one to start
with. It's not a question of need - if you bought a boat
now and tried to put" it i~n any harbor on the Kenai
Peninsula, you'd be lucky to get it in in 5 yea rs.
GENERAL DISCUSS I'ON
WITH CAPT. WAYNE REYNOLDS' Commissioner Wagoner discussed the 'fisherman_ from Halibut Cove
and Homer that run their boats all the way up into the
Upper Cook Inlet, each period,~ and then go all the way
back because there is' no place to moor. If we had a
harbor they could use it as a transient area, where
~they could leave the boat safely between periods.
Commissioner Burnett pointed out that with the advent
of the 200 mile limit, bottom fishing will increase and
the need may go to 800 to 1,000 slips. Commissioner
Wagoner added that although alot of time and money went
into the study by the Corps of Engineers is shows a lack
of knowledge. F~e referred to page 17 ~here it says
"Cannery owned boats are stored in warehouses on the
edge of the River". That is a mistatement as there are no
canneries that have warehouses, .that they store boats in,
in the area. This type of study is good for only a couple
of years especially in an area like ours where the popu-
lation is increasing, .international laws are changing, and
fishing is becoming more important. The report is no
longer accurate. At the time the report was made there
were 3 major processors at the mouth of the Kenai River.
Today there are 6 at the River and this dosen~t include
the one down Kal ifonsky Beach Road. Today they are doing
not twice, but 3-4 times the amount of processing they
were doing at the time of the study. One other thing we'd
like to look at is the recreational benefit that would
come about if we had a small boat harbor. The boating
industry has increased since the time of the report. We
now have numerous marine related industries. There is a
definate increase in recreational needs of the area.
Three or four years ago, we had no direct supplier for
recreational boating equipment, now we have 3 retail outlets
dealing primarily in recreational boating. There are
numerous marine related businesses that have come into the
forefront~in the last few years. There are 3 major boat-
barge building companies. The fish processing plants~we
are talking about are multi-million dollar plants. One
thing we touched lightly on was holding barges. One of the
new local industries related to fish industry is the"
IRS Marine Company. Last year it was contracted to build
4, 26 foot holding barges and this year has contracted to
increase the size of one of those to 36 feet, and to
build 4 additional 36 foot barges. The need~for this was
brought about by another entity that wasn't even in
existance at the time of the report and that is the
Aquaculture Association. Their prime reason is to pro-
liferate the spawning of salmon and increase the yield.
They are presently working in Crescent River area, and the
number of salmon will increase about 5 times, which will
increase the need for processors. The Aquaculture Assoc.
is changing the over-all picture of our needs in the area.
GENERAL D I SCUSS I ON:
(Continued)
The increase expected in the Kasilof area did not
materialize for several reasons. One, there are few
services there, it is a lon'g way from alot of the
fisherman's homes, there was a fire in one of the fish
processing plants, and the~'ofisherman's coop was dissolved.
Because Kenai is a central service district, fisherman
tend to congregate here. What we need is a new study to
take a look at all the things that have changed dramatically,
and show a need of increase harbor facilities. If the
Corps of Engineers felt there was no need for a harbor,
why did they issue permits to two entrepenaures to build
a harbor? Captain Reynolds then referred to his earlier
statement that the Corps of Engineers does not compete
with private industry. They may not help, but would not
prevent private industry. Commissioner Williams brought
up the fact that with inflationary costs, private industry
cannot finance a project of this magnitude. Could the
Corps finance a turning b~sin? The Captain answered that
No, the project must be complete, cannot do a portion of
a project. Above $2 million, the sponsoring agency must pay.
The Corps portion must be, breakwater, entrance channel
and turning base, but must have a 1:1 ratio.
Chairman Peterkin asked .if we went to another financing
agency, must it be predicated on the Corp of Engineers?
Capt. Reynolds said yes.
Chairman Peterkin referred back to the benefit/cost ratio.
Basically, the Kenai River is salmon processing. There is
going to have to be room for more processors. If there
were facilities and unloading areas, what would this do for
additional industry in halibut, herring, herring roe or
even clams. There is nothing plugged in for potential
growth and this is a very important fact that would go in
with future development. Since this report, we have 2 new
canneries, on the rive~. We have a tract record set up
and we can relate it to a past report, and we are still in
a single species zone. The Harbor Commission would like to
see the fishing industry develop further than the salmon.
Captain Reynolds reported that he did not know if future
benefits could be considered on benefit cost ratio. In
order to be credited as a be.nefit, it must be substantiated
that benefit is more than opinion.
Chairman Peterkin added in regard to benefit cost ratio,
that we started processing with salt, then canned, now
frozen, and we may go to fresh. He then brought up the
problems of the Bristol Bay area, with loss of fish due to
the time element involved in processing. They lost millions
of dollars because by the .time the fish got to the processors
the processors turned them down. Basically, we have about
the same problem in this area and it's going to get worse
and worse, the longer the stack up is out there to unload
the fish. When you are processing fresh fish, or frozen
SMALL BOAR HARBOR:
(Continued)
or gas tehyrol, you must have a very good quality of
fish. Fisherman leave the'area early to avoid waiting at
unloading areas. These could be benefit cost.ratio's,'
Captain Reynolds commented that this must be substantiated.
Chairman Peterkin pointed out the stack up, with time
element, how long it takes the last boat to unload. There
will .be no historical records to back this up. This will
have to be new due to the changes in processing. Captain
Reynolds mentioned that damage to the fish may not always
be due to delay, fuel and damage must be considered
separately and cannot overlap.
Mayor O'Reilly suggested that if we had an annual better
P~ice for fish (say 2%) and capitalize that at'8%, then
we are looking at an investment. This may totally change
this benefit cost ratio.
Commissioner Burnett mentioned 5 warehouses in Seattle of
fish that should have got $2.30 to $2.49 per pound, but
the bid price was $1.17 per pound because they are number
2's instead of number l's. Commissioner Ackerly added
that Senator Clem Tillion has more information on thd~s.
~It .was Suggested by Commissioner Williams that the loss
in these 5 warehouses could cover the cost of the harbor.
The Corps should consider that Carter's Embargo Act
of bottom fish could have a major impact. The study does
not fit our time and should be redone.
RECONNAISSANCE ~STUDY'
Mayor O'Reilly added that we are making major efforts to the
State Legislature for financing. He asked if the Corps
had an interim 6 month study, so we wouldn't be tied up in
lon.q term study. Captain Reynolds referred to Section'~107,
2 million of' the federal portion, 3 years verses 10 years,
but limitations of money. It's broken down into a number
of steps. The first part is a reconnaissance study .... It-is
a $5'000 study and done in approximately 90 days. We call
it the "Windshield Reconnaissance Study". We g6t all the info-
mation we can and' try and make a shot at benefit cost ratio.
Then we go on to the next stage and make an lin depth study,
and make the determination again and get benefit cost ratio,
and submit the proposal. The 90 day reconnaissance
would cover request for interim. A great deal of information
must be developed to bring up the benefits. The costs we
came up with in the 1976 study are extremely high. Things
said tonight will show increase benefits, but benefits will
have to be great to off set the cost. Now we need to show
great decrease in costs. When we do the reconnaissance
study there is going to need to be a great deal of
information provided to make those benefits Come out.
Before we even start 107, we must be given assurances by the
City that it is willing and able to make the agreements
with us. Does it have the authority, right of way of
roads, etc.? Mayor O'Reilly answered,~'Yes we do have the
authority.
/
RECONNAISSANCE STUDY'
(Continued)
BENEFIT/COST RATIO'
Captain Reynolds added that the $5,000 for the
reconnaissance study does not come out of the 2. million
dollars, but the detailed study does. Evidence for
claimed benefits is the key, we must justify the benefits.
Cost is established, benefits are brought out tonight
and others are damages to boats, lost time, etc.
The 1976 study was an in depth report, but was stopped
because the benefit cost ratio was so low. Commissioner
Tepp asked if the report could be changed, and asked how
we would go about getting a 90 day study. Captain Re~/nolds
answered that we must have a 'new report. We must apply
by letter, and authorize funds from State. There is no
quicker way, but help from the Harbor Commission would mean
the $5,000 would go further. He went on to explain the
process of going to the State Clearing House and the
Clearing House must send back comments. This takes
about a month. He reinerated that at the end of the 90 day
study the Corps of Engineers could go ahead in more detail,
or could find it not economically feasible (benefit cost
ratio) and drop it.
Commissioner Williams brought to the Harbor Commissions
attention that about 2 months ago we asked for $5,000
from the Citv Council to do a reconnaissance study. Some
members said that $5,000 wouldn't do much. Here is an
~opportunity for the study to be done, time is on our side
for once. Each month that goes by brings that cost ratio
factor closer together, but the thing that isn't working
with us is that we can't get this to our legislators right
now and we should keep them aware of what web"re doing.
Chairman Peterkin talked about benefit cost ratio in
regard to sport fishing recreation. There is absolutely
no place on the river to moor an 18 foot boat unless you
or a friend lives on the river. You have to trailer it
every time you use it. There. is no storage yard for
people from Anchorage, they must trailer boats back and
forth. How can we get a benefit cost ratio here thats
acceptable, the impact here is sensational. Captain
Reynolds asked why recreation was not mentioned in the
study. Chairman Peterkin explained that there is a
disl i ke between the hook fisherman and net fisherman.
It's likely this was why it wasn't discussed.
Commissioner John Williams made the point that Deep Creek
now has a time limit on the length on parking in the area.
It makes everyone more mobile and they tend to come to
Kenai. In 1976 you could park there all summer, now only
for 3 days, therefore it puts more pressure on the Kenai River.
Chairman Peterkin added that there are no facilities
that benefit the sport fisherman on the Kenai, no fuel
facilities, no place to load and off load boats.
RECONNAISSANCE STUDY'
Captain Reynolds reinerated that it is very important
to get the letter in, and anything the Harbor Commission
could do to give information wOuld be helpful. Commissioner
Tepp asked if the Corps had any type of questionaire
that we could send out to the fisherman. No, they did not.
Commissioner Williams made the s~ggestion' that Commission
members' each take a responsibility and do his speciality
to develop information.
Mayor O'Reilly mentioned that we are seeing legislators
tomorrow and we are asking for the whole thing - engineering,
design and construction for boat harbor. Our request
must be in for this session and we want to show that the
1976 report i..s inoperative. Captain Reynolds replied that
the Corps could not say anything of value until the
90 day report is done. Until then we would have to go by
the 1976 report. There was discussion as to why the City
couldn't do the reconnaissance report, since the Corps used
our information.
RECESS'
At 9'25 p.m.'by general consent, a recess was called.
RE-CONVENE
At. 9'40 p.m. by general consent, the Harbor Commission
re-convened in regular session.
ACTION'
Commissioner Burnett moved to; recommend to City Council
to make application to the Corps of Engineers, for recon- ~
naissance report covering navigational improvements under
authority of Section 107, of the 1960 River and Harbor Act,
for the area of Kenai, with great haste. Commissioner
Ackerly seconded, roll call vote, motion 'carried unanimously.
CORPS OF ENGINEERS'
(Continued)
Commissioner Williams referred back to the 2 million dollars
that the Corps of Engineers is authorized to .sPend. Since
1960, 'has Congress allowed for expansion based on inflation?
Captain Reynolds answered that 3 million dollars is being
-considered by Congress. Commissioner Williams asked if it
would be of benefit if our Congressional delegates contacted
Congress? Captain Reynolds answered yes. Commissioner
Williams requested of Ben Delahay any information or the
bill number, would he bring it to the next meeting, and
as part of the agenda, we consider letters to our
Congressional .delegates regarding the 3 million dollars
being considered by Congress. The Commission decided to
tie in a work session with a luncheon on Friday at the Katmai.
Captain ReynoldS reinerated that the Section 107 study,
could be negative' again, the cost may go up, because it is
an environmentally sensitive area.
Chairman Peterkin thanked Captain Reynolds and invited
him to stay for the remainder of the meeting.
JIM SWALLEY.
AIRPORT OPERATIONS
MANAGER
TRANSPORTATION
COMMISSION'
Chairman Peterkin then introduced Jim'Swalley, Airport
Operations Manager. Mr. Swalley mentioned that there
had been some discussion on the possibility of combining
the Harbor Commission and the Airport under one Port
Authority. He commented that he woul'd like to work with the
Harbor Commission, ~'..~He then gave a general outline on where
the Airport is right now, and the direction he would like
to see the Airport go. He pointed out that there was a
"Mayor's Committee on Airport Lands" that was functioning
in 1979 and dist.ributed a copy of their final report.
The Airport lands consist of lands deeded by FAA. It is
supported almost wholly by airport revenues. Of the
1979-1980 budget of' $360,766 only $20,675 came from outside
sources which was Revenue Sharing. The 6udget~is in two
sections, the Airport Terminal and .the Airport Lands
System. Airport revenues are from leases, landing fees,
fuel storage, and others. We are a FAA Certified Air
Carrier. We are certified as an alternate to Anchorage
up to the 727 size. Limitation there is runway length and
weight bearing capacity. We have Wien, who just now cut
back on their services to us and should be reiniating their
Kenai - Seattle'flight in late April. We have AAI and
Polar who is going through their hearing with the ATC
(Alaska Transportation Commission) and plans on starting
services about February 1, 1980. If Polar dosen't prove
up, Andy'~s Flying Service of Kenai has been selected as
an alternate, We. will. have a second commuter airline
between Kenai and Anchorage. According to FAA statistics,
we are the fourth busiest airport in Alaska. We are
working on four Airport Development Assistance Programs
(ADAP) grant preapplication requests for, (~.) Airport
Electrical Generation upgrading (2) Pa'rking Ramp Extension
(1200~ x 350:~), (_3) warm storage building(in shop area),
(.4) 'snow removal equipment. We have lands to the north
of the terminal building called the FBO Subdivision,
broken down'into 11, lO0"x 400' lots wi th ramp frontage.
Currently that land is separated from the airport by ].
security fencing. In .order for us to lease those lands
and maintain security, we 'are going to relocate that~
fencing with the FAA's approval. Proposed future projects
are' float~ plane basin, grass ski strip, airport terminal
renovation, air freight terminal and warehouse (for fish
related industry and oil industry), and BLM fire fighting
facilities which are currently located in Wildwood.
Some other projects are temporary operating area for fish
processors and franchising/leasing airport parking lots.
There was general discussion on ramp expansion and fish
processing areas, and funding for security fencing.
Mayor O'.Reilly added that an ordinance is being developed
to create a Transportation Commission. The Harbor
CommiSsion is now short 1 .member. It has been suggested
that 3 members be added to the standing commission bringing
the total to 9, and as terms expire it will drop to 7.
TRACT A'
(Continued)
BOAT RAMP'
the City spent on that). Lenore found several past
City financial statements and we do'not have a handle
on where the money came from. Malones survey was on
Salamantof and Ken Branch in Homer did survey work on
Tract A, but we couldn't get any ~additional information.
_
Chairman. Peterkin then.referred to information from
Phil Aber in Soldotna on $100,000 to be used for boat
ramp. Also, information from George Navarre on $25,000
for a road to the boat ramp. Kim will continue to
research thi s,
Mayo~ O'Reilly'ire~d a draft of a letter to Don Statter.
Commissioner Williams requested we find out legislature
members who work on boat harbors and ports. Commissioner
Peterkin referred to a call made to Don. Statters office
with Ray Meketa concerning the $650,000 harbor development
funds. Mr. Meketa indicated this money was still available
to Kenai. Chairman Peterkin then referred to a memorandum
to the Mayor, City Council and Harbor Commission from
Roland D. Lynn dated March 2, 1976. It appears that
Kenai would be eligible for $500,000 in the provisions
of Bill SB 582, if approved. There was also a CH 86 SLA 1974
for $650,000 and right now we don't know which bill the
City was granted. If SB 582 v~as'approved, Kenai would be
eligible for a maximum of $1,150,000 for construction of
a port facility He then referred to a letter from
Deborah Daisy to Ray Meketa dated May 6, 1976 concerning
a "tentatively reserved $625,000" pending receipt of the
required feasibility study and formal application for
grant assistance. We do have the form where we can apply
for the money, What we can do here is wait until we get
the Corps of Engineers feasibility study and then apply
for the money. Then we can at least do what we want to
do with Tract A. If $1,150,000 grant is available, we
should apply for it,
Commissioner Williams added that Fleur Corp, is the Prime.
contractor for Alaska~LNG and also for boats, harbors and
basins. Perhaps we could combine these. He estimated
we should be able to start on the small boat harbor in
12 - 18 months. We have a prime contractor in the area
that could do the job,~ Thereby eliminating unnecessary
expenses such as moving equipment in and out of the area.
OLD BUS INESS-
It was confirmed that Len McLean would be at our
January 22, meeting.
Mayor O~Reilly requested committee of the whole and the
meeting went off the record.
NEW BUS INESS'
There is a meeting in Anchorage, Wednesday at 12'00 if
any members would like to attend. There was some
discussion on this.
ROPER
NEXT REGULAR
SCHEDULED
MEETING DATE:
ADJOURN:
Ben Del ahay reported on the Roper leases, Tracts B & C.
Roper compl~ies with one of his l'eases, the insurance on.
Tract B is alright. Tra.ct C, the insurance is insufficient
and he has not compli.ed wi th that. The certificate is
not in conformance. Mr. Delahay suggested that a letter
be sent to Roper in reference to Tract C. The
assignment of leases, the leases are different and his
1 ease could' be cancel I ed if the Harbor Commission wan~s
to Pursue it,
Chairman Peterkin commented that Roper.. never did sign over
those leases to Kenai Development Corp. He signed an
affidavit dictated by'his partners, that he would turn
the leases over, but the City didn't record or accept it.
They are still in his name, personally, "'.Chairman Peterkin
then requested that Ben Del ahay write a letter from the
!.egal department on the insurance of Tract C. Ben will
get l.egal clarification and bring back to the Commission.
The next r~egular scheduled meeti.n§ date i.s January 22, 1980,
at the Public safety Buildi.ng, at 7:00 p.m.
At 12:05 a,m, by. unanimous consent the meeting was
ajourned;
Respectful !y submitted,
Kim Howard
Administrative Assistant
. .
RobOt ~'~terktk~,'~-Cha ir~an'
Harbor. Commi ss i on