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HomeMy WebLinkAbout1980-12-02 Harbor Commission SummaryKENAI HARBOR COMMISSION P. O. Box 580 Kenai, Alaska 99611 AGENDA- December 2,'1980 REGULAR HARBOR COMMISSION MEETING: HARBOR COMMISSION MEMBERS: EX-OFFICIO MEMBERS: AGENDA A. Call to Order December 2, Kenai Public 1980 - 7:00 p.m. Safety Building B. Roll Robert Peterkin, Chairman J'ohn Williams, Vice-Chai'rman Tom Ackerly Ron Isaacs Marvin Dragseth C · Mayor Vincent O'Reilly Councilman Tom Wagoner Call and Oath of Office Agenda Approval D. Introduction of Guests · City Attorney- Ben Delahay (Roper Situation) E. Communi cations F. Reports 1. Gary Davis · Mayor O'Reilly -- Z~~ G. Old Business H · I · O · · Administrative Coordinator--- ~...~. 2. Business Cards ~. ~~,. -FT~_~ ~, ~+--~r~ ~ ' · Uuslness Persons Present Not Scheduled to be Heard Adjourn Kenai Advisory Harbor Commission Regular Meeting, December 2, 1980 Kenai Public Safety Building Robert Peterkin, Chairman A. CALL TO ORDER Chairman Peterkin called the meeting to order at 7:05 p.m. B. ROLL CALL &. OATH OF OFFICE The Oath of Office was administered to Jimmie Davidson by Administrative Assistant Kim Howard. Present: Chairman Robert Peterkin, Vice-Chairman John Williams, Commissioner's Tom Ackerly, Ron Isaacs, Marvin Dragseth and Jimmie Davidson. Others Present: Mayor O'Reilly, Councilman Tom Wagoner, City Attorney Ben Delahay, and Gary Davis. C. A.GENDA APPROVAL G. 3. Department of Transportation (Addition) G. 4. Engineering Selection and Discussion (Addition) D. .INTRODUCTION OF .GUESTS Chairman Peterkin introduced City Attorney Delahay and explained Mr. Delahay had several meetings with Mr. Roper. Chairman Peterkin asked him to explain what happened at those meetings. Mr. Delahay stated the Commission may be aware that Mr. Roper's attorney, Mr. Baldwin, made an offer to the City that was to go before the City Council tomorrow night. Mr. Roper told him yesterday that he and Rick Baldwin have parted company and Mr. Baldwin wouldn't be representing him any longer. Mr. Roper said he was withdrawing his offer. He gave Mr. Delahay two reasons. One. he has two years left on his permit to complete construction. The best time for doing the work according to Mr. Roper is when the ground is frozen and he can get heavy equipment on that ground. He dosen't want to delay until after the first of April which this option would require him to do. He also wants to raise financing to go ahead with the project and wouldn't be able to do it with the option. He said he was ready to sell right now to the City under the general terms that were included. But he said $25,000 won't do anything but cause tax complications this year. Mr. Delahay told him the City wouldn't be interested until there were engineering tests to see if the subsoil conditions were right for a harbor. Mr. Roper said he didn't object to the City going on the property and at Mr. Delahay's request he said he would give the City written consent to go on there, without payment for the purpose of test holes and engineering survey. He didn't want any engineering reports made public that would destroy his chances of financing. If the results are not favorable he wanted them to be kept secret. If the engineering was satisfactory he didn't want to wait eight months to see if the City could get funding for the harbor from the Legislature. In another sentence he didn't mind waiting as long as it was all closed at once. Mr. Delahay was not sure what Mr. Roper would do if we got the engineering study and the study showed this was the best place for a harbor and we offered him $250,000 without waiting for the funding from the Legislature. There is some thought, if this was the spot for the harbor his price may go up. It was Mr. Delahay's understanding the engineering is to go out for three different locations and we don't have any option or purchase agreement on the other two locations. Whoever's place you select they are apt to feel it is pretty valuable. At this point we have nothing with Mr. Roper. Mr. Baldwin called Mr. Delahay and told him he has terminated his association with Mr. Roper because he understood he had the authority to make a deal along these lines and Mr. Roper pulled the rug out from under his feet. If we want to go ahead with the engineering we could accept his offer and get an engineering report then if this is the prime spot then make him an offer. If we don't get the funding this Legislative session or possibly the next one we might not get this type of funding from the State. If ever we build a harbor in this spot you will have to deal with Mr. Roper at one time or another. If he does get enough of a hole there to satisfy the Corps of Engineers for the permit and keep making his lease payments he might be there for the rest of his life. I believe the City Council will eventually have to take action on this and will need the input of this Commission. Mr. Davis asked if the Commission could withhold engineering reports? Mr. Delahay reported it is in the Supreme Court right now. It is something that might hurt the City financially. It would be a case for executive sessions for the reports might depend on how the situation with the Clarion case comes out, we might have to turn-them over. There is a difference in not revealing a report and not broadcasting it. Mr. Delahay thought any bank that is going to lend him money is going to be sure it's feasible first. If the City goes ahead they will at least know where to put the harbor if they get the financing. Mr. Delahay stated if the funds are available from that $643,000 grant to secure land, now might be the time to secure it~. If you buy another tract of land it will make a point to the Legislators that you are firm in this intent. Commissioner Ackerly asked Mr. Delahay if there was a way to foreclose for failure to perform? Mr. Delahay stated at this point he felt that the City would have a very good chance on cancelling Mr. Roper's lease on Tract B, because he agreed to begin construction within two years on a dock and warehouse. Nothing has been done and the time expired in July. The subsequent lease was for a small boat harbor and he did start something that might be sufficient to show "beginning construction." It may be questionable. Mr. Roper would have a defense to that, in that, he says the efforts show the study to build a harbor and State financing and COE study have destroyed his chances of financing to the project. He may have this defense on either lease. At this point the City would like to have from him the assignment of the COE permits. If you do cancel the one lease you can bet you are not going to get anything from the other one. We can buy the property from him or wait and miss this Legislative session or the next one. Councilman Wagoner asked if the permits were assigned to the City would there be an extension granted? Mr. Delahay replied there were two permits. The second, on Tract C, overroad the time allocation on Tract B. He only has one effective permit which is on Tract C. The COE is content that Mr. Roper is doing everything in his power in their schedule. Chairman Peterkin explained the COE stated as long as Mr. Roper has the permits and they haven't expired, there will not be any more permits issued in the mouth of that River. Chairman Peterkin thought if the permits were transferred there would be an extension granted because it would be assigned to a municipality. They would have to be realigned with what the City has in mind, and extended. He asked Mr. Delahay if the City desired to let Mr. Roper run to the end with the COE permits and lose those permits, what action would the City take? Mr. Delahay stated that would terminate anything that can be done on the property. Councilman Wagoner mentioned he had talked to Bill Hudson and he said there wasn't going to be any House Bill 60 if the Governor and his people can stop it. They do want to channel money into streets, water and sewer, and all forms of transportation. Mr. Delahay said if Mr. Roper gets financing or a partner or something that would service a dock that would satisfy the COE he could keep on operating. Councilman Wagoner suggested getting hand. written commitments. Commissioner Williams addressed the engineering. He stated once the engineering package is complete it will improve our position in requesting extensions from the COE. It will improve our position with DOT if necessary and it will improve our position with the Legislators in asking for direct funding if that is the way we go in this session. If Mr. Roper is willing to let the City proceed with that project at no cost, Commissioner Williams thought that is the route to take. It was his belief that Mr. Roper would not be able to obtain the financing for this project. Mr. Delahay referred to the possibility of Mr. Roper taking a partner or partners. Commissioner Williams thought what the engineering reports are going to do is look at planning the entire concept and it will be beyond the scope of what he intends to borrow the money for. Once we have assimilated the necessary engineering data. and it is on paper, if anyone attempts any improvements on that property they can be held to contract, on stipulation that this is the way it must be constructed. At s~rte time in the future, services will be required such as roads, water and sewer, fueling, etc. Mr. Delahay spoke on the two phases of the engineering. One phase would be test boring and drilling. He suggested finding the proper area for the harbor and not go ahead with the plan on the harbor until we get the land. Commissioner Dragseth asked Mr. Delahay if Mr. Roper said what price he would take right now? Mr. Delahay thought he would take $250,000 right now. Commissioner Dragseth stated all three sites are public owned and the other sites may be worth more. He thought the City should give it to him. Commissioner Williams felt since Mr. Roper has verbally agreed to allow us to go ahead with the engineering, he was in favor of going ahead with the engineering right now. At this time we have never arrived at any firm decision or working partnership with Mr. Roper. Mr. Roper must fasten his signature to a document guaranteeing that property and get a time period in which we have to pay that money. Mayor O'Reilly left approximately at this time. Mr. Delahay stated he didn't know what authority Colonel Nunn has reference transferring a permit, modify a permit, or changing a site. Commissioner Williams asked the City Attorney about Mr. Dean's lien. Mr. Delahay said there would be no problem there. MOTION Commissioner Williams moved, seconded by Commissioner Dragseth, the Harbor Commission recommend to the City Council that they purchase back the leases from Mr. Roper, for the sum of $250,000 and that they approve the contract as prepared by the City Attorney to implement such purchase. The purchase of property is to include all right, title, and interest in the leases and the transfer of the Corps of Engineers Permits. There was a roll call vote and the motion passed unanimously. F. 1. Mr. Davis reported he was asked to check with the City Attorney on the question of the Harbor Commission promoting the harbor by printed cards, etc. He didn't see any problems with that with the possible exception of the Alaska Public Officials Commission's (APOC) restrictions. It is the same situation on the solicitation of monies. Mr. Davis checked with the Finance Director on the escrow account and he didn't see any problems there because there would be options that would be under a contractual agreement that you would purchase an option on a slip for a specific number of dollars and specific time. Chairman Peterkin explained the situation to Commissioner Davidson. The intent is to show something to the Legislators. Mr. Davis said he contacted John Tolley in response to additional questions the Commission had about the grant money which he indicated it could be broken down into phases. He stated he would like something in writing. Mr. Davis reported he can start contacting persons and groups on the support list and bring them up to date. Mr. Davis reported he mentioned with Mr. Delahay the discussion with the Corps of Engineers. The Kenai Wetlands Working Group is moving forward. There is a work session with that group scheduled with the City Council at 6:00 on the 17th, one hour before their regular meeting. Murray Walsh will be there and the participating agencies in the KWWG will be invited. The groups that will be doing the three studies, the hydrological done by the Division of Geological and Geophysical Survey of the State, the water quality study which will be under contract to a consulting firm, the proposal will be reviewed, the habitat study which Fish and Wildlife Service and Fish and Game is doing. Mr. Davis had a call from Loren Leman and he indicated it's too late to do a sedimentation sampling which they had hoped to do in association with their site selection research, due to the weather and ice. Chairman Peterkin asked if there hadn't been ample sedimentation samples taken in the past. He gave the example of the 1978 Corps of Engineers study. Mr. Davis referred to the OCM letter written December 25 which was included in the packet. Since the last election there are new members on the Alaska Coastal Management Council, which establishes and reviews all Coastal Management programs in the State and sets up bylaws. The members of the Council are recommendedto the Governor for selection for the Council. Mr. Davis reported John Crawford, Assemblymen from Seldovia is replacing Don Gilman as the new Borough representative. Mayor O'Reilly is the alternate. They will be at the meeting in Juneau on the 9th and 10th, which is a special orientation meeting. There is also room for interested parties. Mr. Davis stated he would like to attend that meeting since in the contract he was directed to participate and represent the City and the Borough's Coastal Management Program. Mayor O'Reilly can only attend the 9th. Mr. Davis reported his contract ran out last Wednesday and will be and will be up to the Council. Since in the grant there is a retroactive clause he would prefer to work under the terms of that contract. If no contract is signed, Mr. Davis said he would like to be reimbursed for work done under the terms of that agreement instead of an additional extension of the old contract. Commissioner Williams asked for clarification that at the present time he was not receiving any compensation for his work? He thought the Commission should advise City Council that an immediate remedy to the situation needs to be forth coming. Mr. Delahay stated the Council was made aware at the last work session but there was nothing they could do at that time. Mr. Davis reported he wanted to call Mark Stephens about the contract. Under the inclusion in the contract it states we are going to work on the small boat harbor design and construction with the $500,000 appropriated from the State. Mr. Davis was going to check with Mark Stephens if we have to work on them, even if though it is an inclusion. Commissioner Williams suggested Mr. Davis withhold the call until after the City Council's reaction to purchase those sites. Chairman Peterkin asked Mr. Davis to get a complete list of the Borough, State and Federal agencies not connected with the small boat harbor, that Mr. Davis dealt with. He wished to show the list to the City Council. Mr. Davis reported he is still working on the feasibility study to submit to Dept. of Transportation to release the 1974 Bond Monies. He is compiling quite a list of studies to show support and public necessity. Depending on the time frame, it needs to be completed and submitted and for tenative approval to go for final draft from the Harbor Commission. He thought it would be at least 30 days with alot of intensive work on it. There will be some need to go to subconsultants like Wince-Corthell to get cost breakdown for sewer and water and for the engineering design work. There will be a need for additional monies spent. He couldn't speculate how much. He stated he would work on that and come with a list of things that need to be completed. Mr. Delahay spoke about the cards. He stated the Commission must have something in the budget for printing and binding to get cards made. If there isn't money there, a resolution from the Finance Director can transfer funds. As long as we're not going to bonding or doing anything of that nature, he couldn't see any reason why that would conflict an laws, you are not trying to influence voters. Referring to the sale of options, first Mr. Delahay was adVerse to giving any money back to them. He felt $25.00 is little enough. He didn't get the point the only reason you would give it back is if the harbor didn't materialize. He wondered if $25.00 is enough to show.any real interest to the Legislators. They are apt to think that is penny ante. He felt they should have to exercise their option within 30-60 days after being offered a slip. $100.00 to $200.00 would show interest. It should not be transferable under any circumstances. Commissioner Williams said he would go along with it being non-transferable. He was in favor of the amount being $100.00 if it would apply towards the first year's lease. He believed Tom Wagoner's idea of the $25.00 came about from the waiting list in Homer where they have a $25.00 surcharge to maintain the list. Mr. Delahay left the meeting at this time. G. 2. Commissioner Ackerly showed the Commission possibilities for business cards, and they were reviewed. He mentioned it cost $10.00 to have these done. Chairman Peterkin asked if the Commission was ready to make a decision. The consensus was to see more l ogo's. There was further discussion. G. 3. There was discussion on alternate financing through DOT. Mr. Davis noted he made a mistake when he indicated Mr. Tolley's project list for 1982. It should be 1983. Commissioner Williams thought Mr. Davis should tell him we need $20,000,000 at December 1980 figures with contingency for inflation. G. 4. Chairman Peterkin asked if the Commission should give Gary Davis direction on the engineering to CH2M Hill? Commissioner Ackerly suggested a special meeting. Mr. Davis stated as far as his efforts, it was just a phone call. The rest would be up to Mr. Delahay. Chairman Peterkin stated the Commission would have to itemize and identify the extent done on each item. Chairman Peterkin said he would wait until after the City Council meting. Mr. Davis reiterated on the meeting with KWWG on the 17th. He said Council has indicated alot of interest. Commissioner Williams said he would not be available from the 12th through the 16th. Commissioner Dragseth wouldn't be here. Commissioner's Isaacs and Ackerly thought they would be able to make it. With no further business, the meeting adjourned at 9:50 p.m. Respectfully submitted, ............ Kim Howard .... ~ Administrative Assistant APPROVED BY: ? Rob~ rt ~e~r~'in, ~~i rman