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HomeMy WebLinkAbout2002-09-09 Harbor Commission SummaryKENAI HARBOR COMMISSION MEETING SEPTEMBER 9~ 2002 KENAI COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1' CALL TO ORDER & ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES -- August 12, 2002 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS ao Discussion -- Boating Facility Operation Alternatives and Budget Review ITEM 6' NEW BUSINESS ITEM 7: REPORTS ao Director Dock Foreman City Council Liaison ITEM 8: COMMISSIONER COMMENTS/q}UESTIONS ITEM 9: INFORMATION ao Kenai City Council Action Agendas of August 7 and 21, 2002. ITEM 10' ADJOURNMENT KENAI HARBOR COMMISSION MEETING SEPTEMBER 9~ 2002 KENAI COUNCIL CHAMBERS 7:00 P.M. CHAIRMAN TOM THOMPSON~ PRESIDING MINUTES ITEM 1: CALL TO ORDER & ROLL CALL Chairman Thompson called the meeting to order at 7:00 p.m. confirmed as follows: Roll was taken and Present: Eldridge, Foster, Barrett, Simon, Spracher, Thompson Absent: Rogers Others Present: Finance Director Larry Semmens, Public Works Director Kornelis, Dock Manager Freden, Dockhand Lyn Disque, and Contract Secretary Roper Public: Randy Meier (R&J Seafoods) Kornelis announced Councilman Bookey would not be at the meeting but he wanted to pass on to the Harbor Commission would have one more meeting before the budget work sessions begin in October. ITEM 2: AGENDA APPROVAL MOTION: Commissioner Barrett MOVED to approve the agenda as presented and Commissioner Eldridge SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MINUTES -- August 12, 2002 MOTION: Commissioner Barrett MOVED to approve the minutes as written and Commissioner Spracher SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS Discussion -- Boating Facility Operation Alternatives and Budget Review Chairman Thompson opened the discussion to the boating facility budget information that was included in the packet. Kornelis provided an explanation of the budget information and drew attention to the funds that were transferred from the General Fund due to shortages in the boating facility budget. Kornelis added, in 2003 the money would come from the fund balance rather than the General Fund. Kornelis also explained the expenditures for dock operations. Commissioner Barrett asked if the parking fees from the dip net fishery could be credited to the Harbor budget. Finance Director Semmens indicated they can but it would require a policy change. Semmens continued, the reason the revenue from the parking fees go to the General Fund is because the fund is responsible for the expenses incurred for the fishery. If there were a policy change to have the monies credited to the harbor budget, then the harbor would have to take responsibility of the expenses. It was noted, revenue for this year was approximately $37,000.00. Commissioner Eldridge asked if the fish tax revenue also went to the General Fund. Semmens confirmed they did because the General Fund paid for the expenses. It was asked if the personal property tax on boats also went to the General Fund and Semmens indicated all property taxes go to the General Fund. It was noted the total revenue from boat personal property taxes was $26,000. Semmens added, $18,000 of that figure was from commercial boats. MOTION: Commissioner Eldridge MOVED to recommend to Council the fish tax revenue and personal property taxes on boats be allocated to the boating facility rather than the General Fund. Commissioner Barrett SECONDED the motion. Commissioner Barrett asked if the parking fees shouldn't be included in the motion and Commissioner Eldridge recommended the two be kept separate. VOTE: There were no objections. SO ORDERED. MOTION: Commissioner Simon MOVED to recommend to Council the revenue from the parking fees be allocated to the boating facility rather than the General Fund. Commissioner Barrett SECONDED the motion. VOTE: There were no objections. SO ORDERED. Commissioner Simon indicated she wasn't pleased with the lack of communication between the Parks and Harbor Commissions and felt a joint meeting should be scheduled to discuss the dip net fishery and the operating costs involved. Simon added, the recreational fishery activity is up and the commercial activity is down so the City should make more provisions to deal with the demand. Simon recommended more effort be made to go after grants and/or go to the State for more funding. HARBOR COMMISSION MINUTES SEPTEMBER 9, 2002 PAGE 2 Kornelis pointed out the Parks Department is very active with the dip net fishery as they provide the staff to collect parking fees, clean the restrooms, empty the trash dumpsters, etc. The Police Department provides an officer. Kornelis added, the State also provides financial assistance each year for various items such as the kiosk, port-a- potty maintenance, and the four-wheelers that allow the officers to police the dip net areas. Commissioner Barrett asked if the City could request funds as a federal economically depressed area. Kornelis replied, the City would not qualify due to the number of residents with high-income levels. Simon stated Senator Ted Stevens was successful in obtaining money to help the fishermen in the state regroup, perhaps the City should contact the congressional office representative to see if some of those funds could be obtained for Kenai. Chairman Thompson stated, while reviewing the expenditures versus revenue, it appeared that the dock did okay. Kornelis noted there were a lot of expenses that are not shown because of the budget year (July 1st to June 30th); there are many other expenses needing to be paid in the spring. Thompson asked if there were any dock lease payments not yet collected. Kornelis noted the payment for the two leases had been paid. The amount paid was $23,500.00. Discussion took place on the current leases and what would happen should the City decide to lease the dock. Kornelis stated that was a real problem and the current lessee has commitments to buy and sell fish and would need a solid lease term for planning purposes. It was noted the current lessee is not interested in a one- year lease. Discussion continued on the following topics: · Commissioner Eldridge stated he wanted the facility to remain available for the public and was not interested in a long-term lease should the City take that route. Eldridge felt the term of the leases should be kept at three to five years. · Eldridge thought the City should go out with an RFP to lease the boating facility to determine whether or not there is any interest. Eldridge added, the RFP should be for the dock and cranes only and the ramps should remain the responsibility of the City. Eldridge continued, it appeared the most expense on the dock comes from staffing it and that would be eliminated should someone come forth wanting to take over. Several liability and safety questions were raised and discussed. Commissioner Simon thought this was becoming a privatization issue for the dock and didn't think anyone would actually bid the work and pay the City for something that has not generated a lot of revenue. Commissioner Barrett asked about the feasibility of adding additional ramps and lanes at the dock. Kornelis replied, it was very unlikely and grants had been applied for in the past. A lengthy discussion ensued regarding the current congestion at the dock and possible solutions to the problem. HARBOR COMMISSION MINUTES SEPTEMBER 9, 2002 PAGE 3 · Commissioner Simon suggested a motion to support the feasibility of adding two additional ramps at the dock be made. It was noted this was reviewed previously and many problems were encountered with the Corps and lack of property in the area. Commissioner Simon withdrew her motion. Commissioner Simon suggested Dragnet Fisheries be contacted to see if they would provide some of their property to accommodate an expansion of the parking lot. · Commissioner Barrett asked if aerial maps of the dock area could be made available to provide a better idea of how an expansion could be made. Kornelis answered maps would be made available. Commissioner Eldridge thought there were other groups within the community who might be interested in the Dragnet property, the Arts Council being one. Perhaps the City could joint venture with one of them to obtain a portion of the property to accommodate an expansion. · Commissioner Simon asked about generating interest to use the dock for other purposes such as timber. It was noted the dock is not designed to accommodate the barges that would be needed to haul timbers. Commissioner Simon suggested if a date was set to shut the dock down it might be the motivation needed to come up with a solution. Closing the dock was an option that was suggested but not discussed in detail. Randy Meier, R&J Seafoods -- Indicated he is interested in continuing the lease but not on a year-to-year basis as his business requires more time, but not a 25-year lease. Meier asked, if the dock was privatized, what would be required from the lessee with regard to maintenance, etc. Meier stated he didn't think anyone would come forward to take over the dock. Semmens stated, if the dock was privatized the company would not provide the same level of service the City provided. Semmens added, a company may be able to run the dock at a breakeven point or actually pay the City if the level of service was established before the dock was leased. Discussion took place on the other users on the dock and Dock Manager Freden indicated it was very sporadic at best. Freden added, a tie-up fee could be another source of revenue for the City, however, it would be difficult to monitor but it could be done. Commissioner Eldridge asked if there would be a reduction in expenses if the time of operation were limited outside the dip net season. Freden stated he didn't think there would be much of a savings as the start-up and shutdown procedures needed to be handled properly to eliminate any further maintenance costs. He added, he thought the only area that could provide a cutback would be to shorten the season by closing the dock in mid-August after the commercial fishing season. Chairman Thompson thought a more thorough breakdown of costs at the dock should be made available in order to better determine what option would be best for leasing the dock. He added, consideration needed to be given to the liabilities involved by privatizing the dock to include regulatory responsibilities on and offshore. HARBOR COMMISSION MINUTES SEPTEMBER 9, 2002 PAGE 4 Commissioner Simon thought an analysis should be made of how the dip net fishery would be affected if the dock were privatized. It was noted this would be a negotiable issue. Commissioner Barrett asked if the legal department could provide something for the next meeting that would outline the legal exposure at the dock. Kornelis stated he would discuss this with the City Attorney. Discussion took place on the expenditures of the dock and Meier asked if he could contact Kornelis to discuss the actual cost involved in running the dock. Kornelis indicated that information could be made available. Chairman Thompson summarized the options as follows' · Continue dock operations "as is" with current leases. · Lease the dock out to private industry and keep the ramps as a City responsibility. · Close the dock. · Revenue from the fish tax, property tax, and parking fees from the dip net fishery be allocated to the harbor budget rather than the General Fund. · Shorten the period of operation. · Consider expansion via access to Dragnet or the Nature Conservatory properties. Chairman Thompson summarized the information required by the Harbor Commission for further discussion at their next meeting so firm recommendations could be made to the City Council as' Provide a more thorough cost of dip net fishery expenses. Obtain a legal opinion regarding the responsibility of the City and a contractor should the dock be privatized, keeping in mind the regulatory issues. Contact with Dragnet or the Nature Conservatory regarding expansion of the dock for ramps, turn-around lanes and parking. · Commissioner Simon will meet with Kornelis to review potential grants, provide aerial maps of the dock area, and if possible, identify the property owners in the area. Provide the meeting packet as early as possible before the next meeting for review purposes. · Have the boating facility current fee structure as an agenda item for the next meeting. ITEM 6: NEW BUSINESS -- None ITEM 7: REPORTS Director-- Kornelis reported the following: HARBOR COMMISSION MINUTES SEPTEMBER 9, 2002 PAGE 5 The letter to Mayor Williams complimenting the dock operation was included in the packet. 7-b. Dock Foreman- Freden reported the following: · There are two thank-you letters included in the packet that were sent to individuals who donated life jackets to the "Kids Don't Float" program at the dock. Freden reported the lifejackets originally provided were never returned so these generous donations allowed the program to continue. Freden noted several other docks throughout the State with the "Kids Don't Float" program lost lifejackets as well. In preparation for winter, the dock should be completely shut down by the end of the week. · Suggested the City should consider a tie-up fee at the dock. Commissioner Simon expressed appreciation for the fine job the staff does at the dock. 7-c. City Council Liaison -- No report ITEM 8: COMMISSIONER COMMENTS/QUESTIONS Foster -- Asked the status of the Coastal Trail and Kornelis answered that there has been no further action or communication since his last report. Eldridge -- Thought it was a good productive meeting and thanked Finance Director Semmens for his input. ITEM 9: INFORMATION Kenai City Council Action AEendas of AuEust 7 and 21, 2002. ITEM 10: ADJOURNMENT MOTION: Commissioner Eldridge MOVED to adjourn and Commissioner Barrett SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at 10:00 p.m. Minutes prepared and transcribe by: Barbara L. Roper;C6ntract Secretary HARBOR COMMISSION MINUTES SEPTEMBER 9, 2002 PAGE 6