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HomeMy WebLinkAbout1980-09-30 Harbor Commission Summary KENAI HARBOR COMMISSION P. O. Box 580 Kenai, Alaska 99611 AGENDA - SEPTEMBER 30, 1980 REGULAR HARBOR COMMISSION MEETING: HARBOR COMMISSION MEMBERS- EX-OFFICIO MEMBERS: A-G-E-N-D-A September 30, 1980 - 7:00 p.m. Kenai Public Safety Building Robert Peterkin, Chairman John Williams, Vice-Chairman Tom Ackerly Tom Wagoner W. M. Burnett Ron Issacs Marvin Dragseth Betty Glick, Councilwoman Mayor Vincent O'Reilly A. Call to Order B. Roll Call C. Agenda Approval D. Approval of Minutes, September 9, 1980 E. Introduction of Guests 1. Dowling & Rice Associates F. Communications 1. Senator Stevens Telegram 2. Rep. Don Young G. Reports 1. Gary Dav±s a. Trip Report b. Capital Improvement Budget c ~, EDA/TA d, Coastal Development. Pr0~ram -1- AGENDA - SEPTEMBER 30, 1980 2. Mayor O' Reilly ~a. Juneau _Trip H. Old Business I. New Business 1. Boards & Commissions Vacancy List 2. Review/Select Engineering Firm J. Persons Present Not Scheduled to be Heard K. Adjourn -2- Kenai Advisory Harbor Commission Regular Meeting, September 30, 1980 Kenai Public Safety Building Robert Peterkin, Chairman A. CALL TO ORDER Chairman Peterkin called the meeting to order at 7: 00 p.m. '- B. ROLL CALL Present: Chairman Robert Peterkin, Vice-Chairman John Williams, Commissioner Tom Wagoner, Commissioner Ron Issacs, Commissioner Tom Ackerly, Commissioner Marvin Dragseth. Others: Ex-Officio Members Mayor O'Reilly and Councilwoman Betty Glick, Councilman Jess Hall, Bill Brighton, -Ben Delahay, Gordon Nicholson, CH2M Hill, Mr. & Mrs. Coyle. C. AGENDA APPROVAL , H. Old Business preceeded G. Reports H. 1. Robert L. Roper Letter (Addition) G. 3. Chairman Peterkin/Corps of Engineers (Addition) I. 3. .Selection of Administrative Coordinator (Addition) D. APPROVAL OF MINUTES , The minutes of September 9, 1980 were approved wi th the following change- G. 1., page 2, paragraph 8, line 5, proposal be changed 0 to grant. E. INTRODUCTION OF GUESTS 1. Mr. Brighton reported Dowling & Rice Associates have withdrawn their submission to the Administrator Coordinator position. Fo COMMUNICATIONS Mr. Davis reported we received a telegram from Senator Stevens indicating he could not attend the Sept. 27th Special Meeting and we keep him informed of the findings. There is a letter from Rep. Don Young in the packet, Kenai Advisory Harbor Commission September 30, 1980 Page 2 H. OLD BUSINESS 1. Mr. Brighton opened the discussion on Mr. Roper's letter by giving some previous background. He referred to the previous City Council meeting and the executive session held at that time. He reported there was an authorization for Mr. Delahay and himself to negotiate with Mr. Roper on his leases. The following afternoon Mr. Roper made an appearance at City Hall. He wanted to bring Mr Brighton up to date on his leases. Upon leaving, Mr. Roper stated his lease would not go for less than $150,000. On Monday, Sept. 29, Mr. Roper hand delivered the letter, which was distributed to Commissioners this evening. Chairman Peterkin addressed Mr. Delahay and asked if he had anything to add. Mr. Delahay stated at the first negotiation with Mr. Roper, Mr. Roper felt he ought to get at least $100,000. At that time he refused to document any figures and he refused again at the meeting with Mr. Brighton. Mr. Brighton added, wheh Mr. Roper left on Monday, he stated he was going to get the heavy equipment down there and get to work. Mr. Coyle injected that according to this letter, Mr. Roper said he made a deal with the City on this property and then he got the Corps of Engineers permit. Mr. Coyle stated Mr. Roper had the COE permit before the lease was ever finalized. He added the notice, was not posted, the only time he got any notice was when it was on the agenda for the Borough. Mr. Coyle stated he was not listed as an adjoining property owner. The first and second permits were the fastest granted that Mr. Coyle had ever seen. He recalled he had pointed out to the then City Manager that this was a matter for the Harbor Commission. The City Manager then called the remaining members, they hashed it over, and the next thing, the City Council approved the lease. Chairman Peterkin reported that prior to the executive session with the City Council, he had a discussion with Mr. Roper. He added, at ~that time Mr. Roper was very passive about his plans for the future. In his discussions with Mr. Roper, Chairman Peterkin identified that he-was speaking for himself. Chairman Peterkin was in on the original negotiation, and wanted to know where Mr. Roper stood. He added he would talk to the Harbor Commission and the City Council if he had changed his mind on the Kenai Advisory Harbor Commission September 30, 1980 Page 3 dollars. Mr. Roper told him that he didn't know what his settlement was with his partner. Chairman Peterkin added, Mr. Roper stated he had to have $75,000 himself, and he thought he could persuade Mr. Dean to take a cash settlement of $25,000, and turn over the leases and the two COE permits to the City. At that point Chairman Peterkin pressed for an executive session with the City Council, and this was the information he relayed to the City Council. Chairman Peterkin stated apparently Mr. Roper had since then changed his mind. Chairman Peterkin tried to get in touch with Mr. Roper the day after the executive session and after the newspaper article, and couldn't reach him. Chairman Peterkin reported he wanted to tell Mr. Roper that he would be contacted by a sub-committee before anyone else notified him. Chairman Peterkin did not know what had transpired with Mr. Roper since that time. Chairman Peterkin reported the article in the newspaper had several misstatements. He added the Harbor Commission was handed this Roper situation the day it opened it's doors. This Commission made no move until Mr. Roper was totally exhausted and bankrupt in his business dealings. Chairman Peterkin added Mr. Roper's corporation was disolved in a lawsuit, construction was stopped, and he had abandoned the project. He further added, at this time this Commission decided to contact the State and any other lending institution, through City Council, to build a small boat harbor. ' Commissioner Williams requested to hear the City Attorney's thoughts on the Roper leases. Mr. Delahay reported the primary fact is Mr. Roper has a lease for 96 and 97 years. This is a property right, just as if he owned that property. Mr. Delahay felt there were 4 or 5 ways the City could go. The first was find another spot on that River for a small boat harbor. If there is no other spot, buy Mr. Roper out, and pay his price. Mr. Delahay commented there has been mentioned the possibility of trying to cancel these leases for failure to perform. Mr. Roper's lease on Tract B has a stipulation put on by the City that construction was to begin within 2 years.. Mr. Delahay added as far as he knew nothing has been done on the things he was supposed to build. There is the possibility that the lease could be canceled on that ground. Mr. Delahay pointed out there are a number of airport leases with that provision and nothing has been done. Kenai Advisory Harbor Commission September 30, 1980 Page 4 Mr. Delahay reported on-Tract C the lease has no prom vision to begin construction. There has been minor work done there. Mr. Delahay spoke on the possibility of condemning the land. The price will depend on the court or jury. The price might end up morse than .Mr. Roper's. Another option is the City has been without a harbor since the beginning of it's existence, let Mr. Roper build his harbor. The situation may look different two - four years from now. ' Commissioner Wagoner asked when the COE permits ran out. Mr. Delahay reported the first was. issued August 25, 78 for a dock, 40' x 80' building, boat ramp, fill and bUlkhead and stated this permit will be null and void if the authorized work is no~ completed from 3 years from date of issuance. This would be August 25, 1981. The second one was to enlarge an authorized dock, relocate boat ramp, and construct additional facilities consisting of a boat harbor, grid boat ramp, wooden floats, fueling dock, and bulkheads. The permit shall be null and void if authorized work is not completed 3 years of date of issuance. 'Commissioner Wagoner asked if the second permit be null and void if it was an extension of the first. "~ Chairman Peterkin had spoken to the COE a~nd they. said the first permit is null and void because the second was for enlargement and additional work. The second pe.rmit updated the first. There was some discussion on t~e appraised value of the land. Commissioner Wagoner commented that no one h_as said that is the best place on the River, only that it was the Harbor Commission's first chOice. None of the engineer's stated it was. The silt may be a problem there, Commissioner Dragseth didn'~t believe it was the best place. He pointed out there is no sewer and water and he thought we should get an engineering firm to look' at it. Councilman Hall commented at the work session he understood the proposals were based on the Roper spot. ~ Chairman Peterkin explained the site selection the Harbor Commission has identified (in preliminary studies to the COE) as the best location is Tract D. Chairman Peterkin further explained the location of the sites and showed them on a map. He referred to problems the COE has had with Tract D because of the creek~ ~The Habitat section of U. S. Fish & Wildlife service want a 2 year study on it. Kenai Advisory Harbor Commission September 30, 1980 Page 5 Chairman Peterkin added the property is well within that shown on the Thorpe proposal that falls within the grounds the City has picked as industrial land. Tract A, BLM donated to the City 22 - 23 years ago to be used as public docking facilities. When the COE came in with short dollars wanting to do a feas- ibility study, they asked us which site we would like a small boat harbor on and we picked D. Commissioner Wagoner added another reason for the site was because it offered the most acreage for initial development around a boat harbor. There was discussion on whether the Roper leases were assigned to the corporation. Mr. Delahay stated he found no record the document had been delivered. MOTION Commissioner 'Wagoner moved, seconded by Commissioner Dragseth, that the Harbor Commission proceed with the selection of an engineering firm and go into negotiation with the firm selected by the Harbor Commission on the three sites that have been identified in the mouth of the Kenai Rive~ and receive recommendations on those sites and the contract be offered to them in two portions, one,up to and including site selection, the other through completion. There was discussion on the motion. Chairman Peterkin called for a recess. Commissioner Dragseth withdrew his second on the motion, Commissioner Wagoner withdrew his motion, Commissioner AckerlY suggested we either come to a solution to the Roper situation or move on with the agenda, Mr.~ Delahay felt there should be a response and the Commission should make a recommendation to the Council. MOTION Commissioner Williams moved, seconded by Commissioner Burnett, to ask for an Executive Session of the Harbor Commission, the Mayor, the members of the City Council that are present, the City Attorney, the City Manager, Kenai Advisory Harbor Commission September 30, 1980 Page 6 and the Acting Coordinator for the Harbor Commission, because of matters, the immediate knowledge of which would clearly have an adverse effect on the finances of ~the government unit of the City of Kenai. There was a roll call vote. The motion passed with Commissioner Wagoner voting no. Councilman Hall stated he had sat in on three Executive Sessions, two of which he felt were not necessary. He stated he did not care to attend the Executive Session as a Councilman. Councilwoman Glick asked Mr. Delahay if it would be legal in view of the fact that the other Councilmembers were not present. Mr. Delahay stated it was legal. Mayor O'Reilly stated he shared Councilman· Hall's feelings-. He added these sessions are being turned with the press to the disadvantage of the Council and Commission. He asked the Commission to reconsider. The Commission did not wish to reconsider. EXECUTIVE SESSION At 8- 30 ?.m. the members of the Harbor Commission, the Mayor, City Attorney, and the City Manager attended the Executive Session. At 8:50 p.m. the meeting resumed. MOTION Commissioner Wagoner moved, seconded by Commissioner Williams that the Kenai Advisory Harbor Commission recommend to the Kenai City Council that they delay selection of an engineering firm until they are given further notice by the Kenai Advisory Harbor Commission. There was a roll call vote. The motion passed unanimously. Commissioner Williams suggested that we notify all the participating engineering firms and thank them for coming down, and explain to them that due to some administrative procedures the selection has been delayed. Mr. Gordon Nicholson of CH2M Hill left the meeting. Kenai Advisory Harbor Commission September 30, 1980 Page 7 MOTION Commissioner Wagoner moved, seconded by Commissioner Burnett that the Chairman of the Harbor Commission send a letter to the Kenai City Council the content of. which Should recommend the Kenai City Council continue negotiations with Mr. Roper and while that is taking place the Kenai Harbor Commission plans to discontinue it's efforts to build a small boat harbor in the mouth of the Kenai River for an indefinite period of time. There was a roll call vote. The motion passed unanimously. H. a. Mr. Davis reported there is a written trip report in the packet. He attended the Alaska Coastal Policy meeting in Anchorage. Borough Mayor Don Gilman is the Co-chairman of that Council. Their duties are very relevant to devel- oping the Borough Coastal Management program, and also in the proposed Kenai Wetlands pilot project. If Don Gilman becomes Senator, his regional vacancy will need to be filled by the Kenai Peninsula Borough. Mr. Davis stated it must be an elected official for3,o~the district. The district makes a recommendation to the Governor, and the Governor makes a selection. It is something for the · Commission to think about. On Wetlands and Office of Coastal Management, Mr. Davis reported that it didn't seem to be proceeding too well. Murr%¥Walsh, of the OCM dosen't want to pursue it without complete approval and input of'the State and Federal agencies involved. The City of Kenai has indicated a willingness. Mr. Davis reported if Murry Walsh doesn't feel by January 1st · that his approach will be workable, he will notify the City of Kenai and if the City wisheS they can initiate their own Wetlands program. b. The Capital Improvement budget was submitted and is included in the packet. The total submitted was $25,000,000. c. Mr. Davis reported he had~heard no word on the TA Grant. He reported Roger Meeks is the City of Kenai's representative on the Borough's Office of Economic Development Council. He is aware of what the City is considering. d. Coastal Development Program is discussed earlier in Mr. Davis's report. Mr. Davis further reported he attended the COE Southcentral Alaska Deep Draft Navigation Study. He explained what they are trying to do is find out Over the next 50 years what the COE involvement will be on the Southcentral Coast of Alaska. Kenai Advisory Harbor Commission September 30, 1980 Page 8 Mr. Davis reported he attended a meeting the Municipality of Anchorage was having, on their Wetlands Program, which is being done by Fugro Northwest. Mr. Davis indicated he is returning copies of their studies, with a letter requesting a list of firms they indicated an interest in for performing their studies, and some of the costs involved, so the City will have some idea of what the Wetlands study may cost. Mr. Davis reported we have received the photos from Will Thompson. They were at Saturdays meeting and are very good. Mr. Davis stated there have been times from the Admin. Coordinator's posi.tion that he felt the need for author- ization. He recommended.a small committee, or for the Chairman to make decisions for trips, etc. Mr. Davis spoke on previous correspondence on Port of Entry saying there is no standard format to apply. Mr. Zuet in Valdez searched his files for procedure on how Valdez obtained their POE in six months. Apparently it was handled by Senator Gravel. .~ Mr. Delaha~ requested if his services were no longer needed, could he be excused. ~ Mr. Davis suggested drawing up a contract for Admin. Coordinator before the City Attorney went on vacation. .. MOTION Commissioner Wagoner moved, seconded by Commissioner Burnett, that .Chairman Peterkin be the liaison officer. for all budget matters between the Harbor Commission and the Kenai City Manager, and in the eVent of his absence, it will become the responsibility of the Vice-Chairman of the Kenai Advisory Harbor Commission, which is John Williams. There was a roll call vote. The motion passed unanimously. Commissioner Williams suggested we talk about the Coastal Development Program. Mr. Davis referred to the Kramer, Chin & Mayo contract with the Borough and the meeting held the previous week. Commissioner Williams' reminded the Commission Kramer, Chin and Mayo have been contracted by the Borough to do a Coastal Zone Program Summary for them. Part of the contract Kenai Advisory Harbor Commission September 30, 1980 Page 9 requires them to have public meetings. Referring to the duck flats, Commissioner Williams had made a statement that he felt they limited the City's develop- ment of industrial lands somewhat, and didn't bring it up to the Conservation Zone. Commissioner Williams added they removed a large parcel of acreage the City had reserved for industrial lands and removed it from future development. Mr. Willia/ns had also suggested to them the City would be getting into our own Alaska Meriting Special Attention program. As he understood from Murry Walsh's office, the Federal Gov't. and State really want the local people's involve- ment. Commissioner Williams asked Mr. Davis how deeply we will be getting involved with AMSA. Mr. Davis explained the AMSA is strictly a proposal by U. S. F & W Service at this time. The City's industrial land juts out into the flats. USF&W's AMSA restricts about 1/4 of what the City in the Comprehensive Plan has earmarked as heavy industrial, He felt if the City agreed it is environmentally damaging, the City would consider i~. It needs to be addressed. Chairman Peterkin requested Mr. Davis contact Mr. Walsh and see if he has money for us for AMSA, the difference in the money for AMSA 'and CZM, the procedure for the grant, and some type of time el'ementj. H. 2. Mayor O'Reilly reported on the Conference of Mayor's. They have agreed to a meeting in Fairbanks at the Municipal League conference to discuss whether to go with a proposal the Governor has made or continue with each city going to Juneau and giving it's best pitch. The Governor's proposal would be that a certain'segment of excess revenues go to the Permanent Fund. A certain percentage would go to the municipalities and would be split up, probably based on population and tax base. Commissioner Williams clarified this means we would have to save the monies up for our major projects or spend it on the minor projects, but it would be our money. There was some discussion on the State of Alaska reserves and~ the Governor's proposal. Mayor O'Reilly further reported they were unsuccessful on the Municipal Assistance Fund. Kenai Advisory Harbor Commission September 30, 1980 Page 10 I. 1. Chairman Peterkin stated the Governor's Boards and Commission List would be discussed at a future meeting. The next meeting was scheduled for September 7. Commissioner Burnett questioned when his term would be up He understood it was March 1, 1980. Chairman Peterkin indicated the Council meeting of July 18, 1979 confirm his appointment and.his term would end in 1981. 2. Commissioner Williams stated at some time we will be building a small boat harbor, would it not be advisable to narrow the engineering firms down to one contractor? Chairman Peterkin felt we should wait an Undetermined length of time due to the circumstances. MOTION Commissioner Wagoner moved, seconded by Commissioner Ackerly that we table item 2. · There was a roll call vote. The motion passed with Commissioner Williams voting no. · 3. Commissioner Williams stated we may not nee~d a coord- inator in the near future. Un~il we make some other · determinations we should let the matter rest. Chairman Peterkin explained there are four things %he action tonight has put into different view. They are the Admin. Coordinator/Borough Grant, the Capital Improvement Project, the COE and Mr. Statter's office. Mr. Brighton stated .it won't have any impact on the grant. Commissioner Williams stated he would Prefer tabling action. Commissioner Wagoner asked if it would take a Vote to bring it back up on the floor? Mr. Brighton stated yes. I. 3. Commissioner Williams moved, seconded by Commissioner Ackerly that item I. 3, be moved to item 1, of next meeting under Old Business. · There was a roll call vote. The motion passed with Commissioner Williams voting no. Kenai Advisory Harbor Commission September 3'0, 1980 Page 11 Commissioner Ackerly brought up the fact the Capital Improvements Budget was totalled incorrectly. Commissioner Wagoner stated it should be $20',500,000. There was further discussion on the Capital Improvement Budget. With no further business, ~ at 11:30 p. m. the meeting adjourned. Rok~a~ t ~t~rklr  ,~ ~h~i Respectfully submitted, Kim Howard Admin. Assistant