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HomeMy WebLinkAbout1997-04-07 Harbor Commission SummaryKENAI HARBOR COMMISSION AGENDA April 7, 1997 Kenai City Hall 7:00 p.m. Chairman Will Jahrig ., m ., 1 ,. Sm 1 al 1 ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES- March 3, 1997 PERSONS SCHEDULED TO BE HEARD None OLD BUSINESS a. Boat Storage Lease NEW BUSINESS a. Dock Rate Schedule INFORMATION a. Kenai River Comprehensive Management Plan - Draft (hand-out) b. Marine Fuel Tax COMMISSION COMMENTS & QUESTIONS a. City Council Agendas ADJOURNMENT Harbor Commission ***Minutes*** April 7, t997- 7:00 p.m. City Council Chambers Chairman Will Jahrig = CALL TO ORDER AND ROLL CAL~ Members Present' Will Jahrig, Tom Thompson, Ray McCubbins, George Spracher Members Absent: Jeannie Munn, Barry Eldridge, Mike McCune Also Present: Keith Kornelis, Paul Dale, Jim Bookey, Debby Fahnholz a APPROVAL OF AGENDA Commissioner Spracher MOVED to approve the agenda as amended. Commissioner Thompson SECONDED the motion. Motion approved. 3. APPROVAL OF MINUTES Commissioner Thompson MOVED to approve the minutes as written. Commissioner Spracher SECONDED the motion. The minutes were approved as written. = PERSONS SCHEDULED TO BI= HFARD None. = OLD BUSINESS Boat Storage Lease- Keith Kornelis reported that BLM gave the property to Kenai with restrictions. He reported that BLM did not feel the city could lease the property to a retail business without voiding the lease. He reported the property was given to the city of Kenai with the restriction that it be used for boat launching facilities only. Councilman Bookey asked if there were any other restrictions on the property. Kornelis responded that it was for small boat landing use only. He thought that the BLM's concern Harbor Commission April 7, 1997 Page 1 was that any revenues generated would have to go back into the facility and not into City funds. Commissioner Thompson asked if BLM has a stipulation that addresses funds that are generated. Kornelis stated that yes, any funds generated would have to go back into the facility and must be approved by BLM. Councilman Bookey asked if BLM had this restriction on all the tidewater areas. Kornelis stated he didn't think so. Commissioner Jahrig suggested finding out how to set the lease rate. Kornelis responded that he would check with the City Attorney. Commissioner Thompson MOVED to proceed with the BLM process. Commissioner Spracher seconded the motion. The motion passed unanimously. Commissioner Jahrig suggested that Councilman Bookey let Council know and research any other restrictions on BLM's rights. Councilman Bookey agreed to let Council know the Commission's recommendation. Sm NEW BUSINESS Dock Rate Schedule - Commissioner Jahrig asked about the boat launch ramp fees. Kornelis stated that they have never dealt with a per minute charge in the past. He stated the City Manager and the Finance Director have suggested raising the launch fee to $10. Councilman Bookey felt that since the facility is losing money that they should get more in line with the private sector. Commissioner Jahrig suggested raising the fuel cost rate. Councilman Bookey stated that Council is going to be cutting budgets everywhere and felt that since there is an opportunity to generate some needed funds a get costs more in line with the private sector, they should seriously consider doing so. Commissioner Jahrig asked how many gallons of fuel they sold at the city dock last year. Kornelis stated about 30,000 gallons, mostly diesel. Councilman Bookey stated that they sold $56,900 in fuel last year. Councilman Bookey stated he would not support a launch fee of $10, but would support a $7 launch fee. He suggested as an alternative they could charge $10 for the peak season and then drop the fee back to $5 or $7 for the rest of the season. Commissioner Thompson asked if the cost of the season pass should be raised. Councilman Bookey responded that if one fee is adjusted, then the other will also need to be adjusted. Harbor Commission April 7, 1997 Page 2 Commissioner Jahrig suggested issuing a cannery pass. Commissioner Thompson felt that could get misused. Kornelis stated that the canneries sometimes lease trailers and have people pull their boats. Councilman Bookey stated that since the facility is running at a loss, they need to consider increasing the profit or the budget can get cut anyway. Then they may have to run on the generated revenue only. Kornelis stated that according to the code the City Manager sets the fuel rates. He stated they take consideration from the Commission, but the fuel cost changes can be very flexible and they get approved by Council as needed. Paul Dale suggested one way to generate fuel funds could be to have the pumps available more often. Councilman Bookey asked if other people could obtain fuel from facilities like Columbia Packers. ~aul Dale responded that they probably could, but that the packers would probably frown on it. Kornelis responded that people can call for a $30 fee they will go open up the pumps for them. Paul Dale suggested a key lock system. Councilman Bookey responded that there could be liability issue there due to spill possibilities. Commissioner Jahrig was concerned about asking one user group to carry the burden. Councilman Bookey stated that they are currently running at about a $20,000 net loss. He felt that by raising fuel costs slightly and launch fees they could come a long way in closing the gap. He asked the Commission what they were willing, to compromise on the building extension. Commissioner Jahrig stated that he would like to see the extension match what is already there. He stated that it needs to withstand heavy use and less expensive building materials would not hold up to the use. Councilman Bookey asked if there were changes suggested to the structure, what would the Commission feel about putting the addition on hold for another year and see what revenue changes they can generate. He felt maybe they could then get what they want put through. Commissioner Spracher suggested a $10 launch fee. Commissioner Thompson stated he would like to see a $7 fee. Commissioner Jahrig suggested a penny a gallon increase in the fuel costs. Kornelis stated he usually goes with a percentage figure. Councilman Bookey was concerned that they not get lopsided on the fees. Commissioner Jahrig suggested that they just state to Council that the Commission is open to increases and let the Council decide. Paul Dale asked about the dockage rate. Commissioner Jahrig stated he would like to see those foes equal to the others offered on the river. Councilman Bookey agreed that it is a Harbor Commission April 7, 1997 Page 3 concern when the facility is running at a loss. Paul Dale stated there is not another facility that does exactly like the city docks, but the city's costs are less because they don't sort the fish. He felt that would only amount to a penny a pound difference. Councilman Bookey suggested 10 cents a pound would bring them real close to breaking even. Commissioner Jahrig suggested a 3-4 cent a pound increase on Item 1, a percentage increase on fuel costs to 27%, and a $7 launch fee with the seasonal pass to increase to $75. Paul Dale stated it is common practice to charge a fish and non-fish wharfage rate. He was concerned-about raising the non-fish rate. Councilman Bookey felt 3 cents a pound was not even going to break even. He wasn't sure he would agree with 7 cents a pound, but felt a 2-3 cents a pound increase was fair. Commissioner Jahrig then suggested 5 cents a pound for non-fish and 10 cents a pound for fish. Commissioner Thompson MOVED to recommend increasing the wharfage rate to 5 cents a pound for non-fish and to 10 cents a pound for the fish, the boat launch fee to increase to $7 and the seasonal pass fee increase to $75, and the fuel to increase to 27% over cost. Commissioner Spracher SECONDED the motion. The motion passed with a unanimous vote. 7. INFORMATION Kenai River Comprehensive Management Plan - Kornelis passed out a copy of the draft plan and stated it was for informational purposes. aa COMMISSIONER COMMENTS AND Q. UESTIONS Kornelis stated that he had checked into the Coyle Estate property per the Commission's request and found out there was 31.5 acres appraised at $257,000. He stated that about 60 percent was usable with the rest wetlands area. Kornelis reported that stations 2 and 3 dock leases are up for lease this week. He stated the bid was put out as suggested by the Commission for 2 and 4 year leases. Councilman Bookey stated that Council did not hire a new City Manager. He reported they will be going into the budget process beginning on Thursday. He was pleased with the action the Commission had taken because he felt it gives the Council somewhere to go. Harbor Commission April 7, 1997 Page 4 9. ADJOURNMENT The next meeting was scheduled for May 12th. Commissioner Spracher MOVED to adjourn. Commissioner Thompson SECONDED the motion. The meeting was adjourned at 8'20 p.m. Respectfully submitted, Debby J. ~ahnholz Harbor Commission April 7, 1997 Page 5