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HomeMy WebLinkAbout1999-04-12 Harbor Commission SummaryKENAI HARBOR COMMISSION MEETING APRIL 12, 1999 KENAI COUNCIL CHAMBERS 7:00 P.M. CHAIRMAN WILL JAHRIG AGENDA ITEM 1' CALL TO ORDER/k ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVA~ OF MINUTES -- MARCH 8, 1999. ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5- ao ITEM 6: REPORTS Director Dock Foreman OLD BUSINESS a. Discussion-- Kenai Coastal Trail b. Discussion -- Cunningham Park c. Discussion-- South Spruce/Beaching Parking Project ITEM 7: NEW BUSINESS ITEM 8' COMMISSIONERS' COMMENTS/0UESTIONS ITEM 9: ao ITEM 10' INFORMATION Kenai City Council Action Agendas of March 3 and 17, 1999. 3 / 9 / 99 Amy George, Kenai National Wildlife Refuge letter regarding possible funding for proposed boardwalk extension. ADJOURNMENT REGULAR MEETING OF THE CITY OF KENAI HARBOR COMMISSION APRIL 12, 1999- 7:00 P.M. KENAI CITY HALL CHAIRMAN WILL JAHRIG, PRESIDING 1. CALL TO ORDER AND ROLL CALL Chairman Jahrig called the meeting to order at 7'00 p.m. Members Present- Werner-Quade, Clay, Thompson, Eldridge, Jahrig, Spracher Members Absent: McCune Also Present: Councilman James Bookey, III, Public Works Manager Keith Kornelis, Contract Secretary Victoria Askin 2. APPROVAL OF AGENDA MOTION: SPRACHER MOVED TO APPROVE THE AGENDA WITH ADDITIONAL INFORMATION PROVIDED BY KORNELIS. MOTION SECONDED BY CLAY. THE AGENDA WAS APPROVED AS WRITTEN. 3. APPROVAL OF MINUTF~ Regular Meeting of March 8, 1999 MOTION: WERNER-i~UADE MOVED TO APPROVE THE MINUTES OF MARCH 8, 1999 AND ASKED FOR UNANIMOUS CONSENT. MOTION SECONDED BY ELDRIDGE. MINUTES WERE APPROVED AS WRITTEN. 4. PERSONS SCHEDULED TO BE HEARD Paul Dale, Snug Harbor Seafoods Dale distributed a letter requesting the Commission entertain the possibility of a non-exclusive lease on a first come, first serve basis on City Crane # 1. As noted in the letter, Dale pointed out they were not the successful bidders at the April 12, 1999 Crane Lease Bid Opening and KENAI HARBOR COMMISSION MEETING MINUTES APRIL 12, 1999 PAGE 1 was interested in focusing on Crane # 1 as a backup to the lease they already maintain on Crane #2. Dale further justified his position by stating the city of Kenai only made $70 on Crane # 1 last year and considering this type of lease would ensure another $8,000 in City coffers. Snug Harbor Seafoods would operate the crane so City personnel would not be required for operation. Jahrig asked what the rates were for the two cranes currently leased. Kornelis answered there is a minimum bid at$15,000 for Station No. 2, with an additional .0375/lb. levied once the minimum bid poundage amount is surpassed. Considerable discussion ensued regarding lease rates, fire lane access, and the fact Snug Harbor Seafood was not requesting additional office space, parking/staging areas or footage. Dock Foreman "Swede" Freden was asked his opinion. Freden stated he didn't have a problem with the crane being released for bid but if the City was expected to operate it, additional personnel would be required. The only use of the crane last year was by Western Geophysical. If Snug Harbor Seafood employees were going to operate the crane when in use, he saw no problems. Freden added, the problems currently being encountered at the dock include fueling at the dock, transferring commercial fish in totes to trucks on the loading ramp, or hand-pitching fish from the boats to a truck in the middle of the night. Boats also use the loading ramp to load and unload at no cost. He added, he felt the City was losing a lot of revenue. Additional discussion regarding liability, problems with using Crane # 1, fresh fish market fishermen using the Dock, sport fishermen using Crane # 1, and legal ramifications of awarding a third contract was held. This lengthy discussion concluded with a motion from Commissioner Eldridge. MOTION: ELDRIDGE MOVED THE COMMISSION RECOMMEND TO THE CITY COUNCIL AND ADMINISTRATION THEY CONDUCT A LEGAL REVIEW OF THE OPTIONS FOR A NON-EXCLUSIVE LEASE CONTRACT FOR THE USE OF CRANE NO. 1 FOR ONE YEAR TO ONE OF THE OTHER STATION LESSEES. IF IT CANNOT BE GIVEN TO EXISTING LESSEE, THEN PUT IT OUT TO BID WITH AN $8~000 MINIMUM. THOMPSON SECONDED. MOTION PASSED. Discussion concluded noting there was not enough time for this matter to come back to the Harbor Commission, so the Commission wanted administration to act on the matter and take it directly to council. KENAI HARBOR COMMISSION MEETING MINUTES APRIL 12, 1999 PAGE 2 ® REPORTS a® Director's Report Kornelis reported the biggest issue was the Crane Lease Bid Opening and remaining items were in Old Business. b. Dock Foreman Freden reported the Dock had been plowed out and was ready to go. Jahrig asked when the bays would be opened. Freden answered when it dries out and activity starts. He added, there was still snow running down the launch ramp and appeared it would be another two weeks. He will be checking under the dock at a low tide to make sure there was no damage with the excessive ice experienced this year. OLD BUSINESS a. Kenai Coastal Trail Kornelis reported he met with Nottingham regarding the next step of their proposal which entails preliminary design with a reasonably good survey showing more information, such as property lines, topography and a much better cost estimate concerning quantities and unit prices for doing the work. He added, the goal is to get a package together to be used for presentations to the U.S. Congressional Delegation and State Legislature in seeking funds. He went on to explain specific points such as additional access points, raising the elevation of the trail in critical areas, grading of slope in steep areas, and breakwater to protect dunes at Alaska Avenue was needed. Kornelis further discussed increased funding possibilities with the now T-21 funds. He noted, the state was getting more money and there a Trails Program was being offered. Kornelis added, he was looking forward to receiving a preliminary design proposal by the next Commission meeting. be Cunningham Park Kornelis distributed the City of Kenai Resolution No. 99-13 showed the starred (*) activities being approved which included the boardwalk and ADA access at Cunningham Park. Kenai River Sportfishing and State Parks was reviewing work already begun and are very happy with the progress. KENAI HARBOR COMMISSION MEETING MINUTES APRIL 12, 1999 PAGE 3 Bookey noted he felt the three projects approved by the Kenai River Sportfishing Association to complete were the most important ones and would provide a much nicer park for the public to use. South Spruce/Beaching Parking Project Kornelis directed the Commission to the drawing in the added packet and briefly reviewed the proposed parking area at the bottom of South Spruce. He noted, the package would be bid on April 14 at 10'00 a.m. The existing piling would be removed and then replaced when the parking area is completed. The City will relocate the fence at the top to put in fill and two existing trails will be rerouted. Damaged wetlands will be restored and the existing culvert will be cut back even with the existing fence. Kornelis noted, the project was estimated to cost $99,000. The parking lot should be triple its original size. Bookey noted the parking lot may become paid parking during the summer and maintain its 12-hour maximum stay to help offset the cost of the parking lot. 7. NEW BUSINESS -- None. So COMMISSIONERS' COMMENTS / QUESTIONS Commissioner Jahrig asked the Snug Harbor letter be included in the packet for the next meeting so the Commission has a copy. Councilman Bookey reported April 26 is the City's first budget meeting. He noted, the Legislature had decided to take all of the Municipal Assistance/Revenue Sharing out of their budget which amounts to about $500,000 for the City of Kenai. Depending on the Senate's decision, half of those funds may be replaced, or none at all. If all the money is lost, the City would have a deficit of approximately $1 million. Council has been discussing what can be done but wouldn't decide until after the Senate makes their decision. ® 10. INFORMATION ao Kenai City Council Action Agendas of March 3 and 17, 1999. 3 / 9 / 99 Amy George, Kenai National Wildlife Refuge letter regarding possible funding for proposed boardwalk extension. ADJOURNMENT ELDRIDGE MOVED TO ADJOURN. MOTION SECONDED BY CLAY. MEETING ADJOURNED AT 8:25 P.M. KENAI HARBOR COMMISSION MEETING MINUTES APRIL 12, 1999 PAGE 4 Respectfully submitted, Victoria Askin Contract Secretary KENAI HARBOR COMMISSION MEETING MINUTES APRIL 12, 1999 PAGE 5 ctt bof Seafoods, Inc. Box 701 Kenai, Alaska 99611 907-283-6122 Fax 907-283-6127 Kenai Harbor Commission Members April, 12, 1999 As you may. have been apprised, Snug Harbor Seafoods was not the successful bidder at today's dock bid opening for Crane Station #3. Snug Harbor will need to seek alternative unloading arrangements in order to meet our anticipated volume. We are now more keenly interested in discussing a non-exclusive wharfage arrangemem for City Crane # 1. The difficulty in utilizing the City Crane 'with the existing arrangements, from our perspective, is that we cannot staff and set up an appropriate off loading system of a nature that will accommodate our volume. We would also note that your total wharfage income for the last season was down significantly from prior years. In addition R&J Seafoods, the successful bidder for Station #2, .was often the only seafood user of the City Crane. Therefore, we believe that a non-exclusive wharfage lease for Crane #1 would yield a significantly larger total wharfage income for the City, and minimally affect likely users of the City Crane at traditional rates. Therefore we propose: o Snug Harbor Seafoods will lease Crane #1 on a non-exclusive wharfage basis for the 1999 Salmon season under terms and conditions similar to those in place for Cranes #2 & #3. Non-exclusive use shall mean first come first served, as determined by the Harbor Master. 2. The wharfage lease shall be $8000 plus .0375/1b. for poundage in excess of 213,333 lbs. We believe this arrangemem would meet our needs and those of the successful bidder while still providing reasonable public access to a commercial crane. We are hopeful you can agree to this concept in principle and direct your staff to finalize a contract. Sincerely, Paul Dale