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Home My WebLink About05052010 PACAB PacketPort and Commerce Advisory Board Regular Meetin May S, 2010 Regular Meeting City Council Chambers Beginning at 12:30 pm SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting May 5, 2010,12:30PM COUNCIL CHAMBERS Ron Long, Chair Board Member Term Expires 2011 Theresa Butts, Board Member Term Expires 2012 Deborah Altermatt Board Member Term Expires 2010 Daniel Oliver Board Member Term Expires 2010 Daryl Schaefermeyer Board Member Term Expires 2012 Robert Buck Board Member Term Expires 2012 Paul Tougas Board Member Term Expires 2011 Phillip Oates City Manager Kari Anderson Harbor Master Suzi Towsley Executive Liaison 1. 2. 3. 4. CND 1Ii] 1Cox$) 7 U-3 0 PLEDGE OF ALLEGIANCE ROLL CALL SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. ARRC Representative Louis Bencardino B. Chamber Report -Laura Cloward, Executive Director C. Harbormaster Report —Jim Lewis for Kari Anderson D. Community Development Report- Christy Terry 5. Citizens' comments on any subject except those items scheduled for public hearing. [Those who have signed in will be given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this agenda item.] 6. Approval of agenda and consent agenda [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a Board Member so requests. In the event of such a request, the item is returned to the Regular Agenda.] City of Seward, Alaska PA CAB Agenda May S, 2010 Page 1 7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS — A. Monthly PACAB Budget Report ...........................................................Page 3 8. UNFINISHED BUSINESS A. Setting a joint work session with Planning and Zoning Commission for May 11, 2010 to discuss Plans for development of the South Harbor Uplands ......................Page 4 9. NEW BUSINESS A. Resolution 2010-03, Recommending PACAB Priorities for 2010 for Council Approval.....................................................................................Page 33 B. Discussion and Comments on the establishment of Seward as a U.S. Customs port of entryand status as a foreign trade zone.................................................Page 36 C. Resolution 2010-04, Recommending PACAB Revisions to Seward City Code Chapter 7, Harbor Code.............................................................................Page 53 * D. Approval of April 7, 2010 Regular Meeting minutes..................................Page 59 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required)- 11. BOARD COMMENTS 13. CITIZEN COMMENTS [S minutes per individual - Each individual has one opportunity to speak.] 14. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS'COMMENTS 15. ADJOURNMENT PACAB Agenda Page 2 City of Seward, Alaska May 5, 2010 2 Co PACAB MONTHLY BUDGET REVIEW 2010 Budget to date w/expenditure Advertising $' 250.00 $ 250.00 Subscription & Dues -$850.00 $' 750.00 $ (140.00) Funds will be transferred from another account Travel & Subsistence $ 450.00 $ 289.00 to cover this short fall Education & Training $: 400.00 $ 400.00 Insurance $ 400.00 $ 400.00 Supplies $ 990.00 $ 990.00 Postage & Fees $: 210.00 $ 210.00 Misc $ - Totals $' 3,450.00 $2,399.00 Expenditures per month 2010 Description Jan-10 $40.00 WTC Luncheon Feb-10 $161.00 WTC travel remibursement Apr- 10T, $850.00 WTC membership Port and Commerce Advisory Board Agenda Statement Date: May 5, 2010 To: Port and Commerce Advisory Board From: Suzi Towsley, Executive Liaison Subject: Setting a work session for May 11, 2010 to discuss the South Harbor Uplands with Planning and Zoning and City Council Back round and Justification: During the April 7, 2010 Regular Meeting of PACAB a work session to discuss the South Harbor Uplands was mentioned during the Administrative report. This work session has been scheduled through the City Clerks office in conjunction with the Planning and Zoning Commission. City Council will also be invited. The date of the work session has been set for May 11, 2010 at 6:30 in the Fire Station training room. This work session will replace PACAB's regularly scheduled work session on May 19, 2010. Recommendation PACAB should make a motion for PACAB board members to attend this work session. 4 WOHLFORTH, JOHNSON, BRECHT, CARTLEDGE & BROOKING A PROFESSIONAL. CORPORATION ERIC A. AUTEN JULIUS J. BRECHT CHERYL RAWLS BROOKING ATTORNEYS AT LAW CYNTHIA L. CARTLEDGE MICHAEL GATTI 990 WEST STH AVENUE, SUITE 000 ROBERT M. JOHNSON BRADLEY E. MEYEN ANCHORAGE, ALASKA 99501.2045 ERIC E. W OHLFORTH CONFIDENTIAUATTORNEY-CLIENT PRIVILEGED This Is a PRIVILEGED COMMUNICATION In respect to a confidential matter between attorney and client, Is not subject to subpoena, and cannot be received in evidence in a court action. However, we suggest that you retain this material under your personal control rather than in general flies. MEMORANDUM TO: Scott Ransom, Harbormaste FROM: Brad Meyen, City Attome DATE: July 28, 2005 SUBJECT: Small Boat Harbor South Breakwater and Filled Land; Our File No. 4337.4102 TELEPHONE S07.276.6401 FACSIMILE 907.276,5093 WESSITE www.wvjb.com This memorandum provides general comments on the land ownership status for the south breakwater ('Breakwater") and adjacent filled land and discusses limitations on their use. Nothing contained in this memorandum may be considered an admission of fact by the City of Seward ("City") concerning title to the filled land, and it shall not be used for or considered a title opinion. Title insurance and a land survey should be obtained prior to making significant improvements on the filled land. Hereinafter "Corps" is used to referto the United States government in general and when the federal government is acting through the Department of the Army. Summary Under the June 2003 Project Cooperation Agreement between the Department of Army and the City of Seward for Construction of the Harbor Improvements (the "Agreement"), dredged -and excavated material was deposited behind the newly extended Breakwater creating approximately 3.5 acres of filled land described bythe Corps as "BOD 1:0ocA43371001 %General 20051M2Ransom re Harbor Breakwater wpd 5 Scott Ransom, Harbormaster Re: Small Boat Harbor Breakwater Fill Area Our File No. 4337.4102 July 28, 2005 Page 2 Disposal Area 1." You have asked who owns and controls the Breakwater and the filled land created by the deposit of dredged materials by the Corps and what use may be made of the Breakwater and the filled land in particular, given the May 25, 2005 "Memorandum For Record" prepared by the Corps which, upon signing by the City, will indicate the City's acceptance of BOD Disposal Area 1.1 CGNFIi LL:,,oi.11-IL Based on the assumptions described below, we believe the area containing the Breakwater and filled land to be owned by the City but remains subject to the federal doctrine of navigational servitude ("Navigational Servitude"). We strongly recommend that the area containing the Breakwater and filled land be surveyed and a preliminary commitment for title insurance obtained based on that survey before any significant improvements are made by the City on the filled land. The City may make limited use of the filled land subject to applicable land use restrictions, City ordinances, and other governmental regulations. However, for the reasons described below, this filled land should not be considered available for sale or lease. The Breakwater is a separate general navigation feature that continues to be operated and maintained by the Corps under the Agreement, and use of the Breakwater must be coordinated with the Corps. Discussion In regard to coastal lands generally, the State of Alaska received tide and submerged lands at Statehood under the Equal Footing Doctrine and the Submerged Lands Act. The State then transferred some of these lands to its political subdivisions. For the most part, uplands, tidelands, and submerged lands in Alaska are subjectto the Alaska Land Act, AS 38.05. It appears that the City received title to the tidelands and submerged lands beneath the general harbor area through the Tidelands Preference Right Act and a state grant of ATS 174.2 This general area also appears to be covered by Tract No. 100 reconveyed to the City by the Corps in 1999.3 COl�IFIDENTInL I The City has not signed this document pending completion of a topographical survey by the Corps. Discussion on use of the filled land assumes the City will eventually sign this document accepting the Corps work resulting in the filled land. 2 ATS 174 was conveyed to the City as a preference right pursuant to Tidelands Patent No. 232 under AS 38.05.320 which is now AS 38.05.820. 3 The survey is important because the Breakwater and filled land appear to be close to the southwest boundary of Tract No. 100. A title report dated September 5, 2000 by First American Title Insurance Company indicates thatthe land generaliywithin the Seward small boat harbor is owned bythe City (excepting the Alaska Railroad properties). The locations and boundaries of the Breakwater and filled land should be determined by a survey: A title report, based on a current survey, would confirm title. IADocs)43371 001 %General 20051M2Ransom re Harbor Breakwatermpti N. Scott Ransom, Harbormaster Re: Small Boat Harbor Breakwater Fill Area Our File No. 4337.4102 July 28, 2005 Page 3 CL'NFIDEhTIAL The 1964 earthquake and subsequent seismic waves completely destroyed the Seward small boat harbor, and reconstruction of the harbor was authorized by the River and Harbor Act of 1964. The submerged lands comprising the harbor were conveyed by the City to the Corps in August 1965 as part of the harbor reconstruction process. The adjacent uplands owned by the City were not conveyed. CONFIDENTIAL During the 1993 North Pacific Division Command Inspection, the Corps determined that for local cooperation projects such as the post earthquake harbor reconstruction in Seward, the local government sponsor (the City in this case) need not actually convey its real property interests to the United States; rather, the local government sponsor need only certify that it has adequate land holdings and that it will make the lands available to the federal government for such projects. Because it was determined that no authority existed for the Corps to acquire title to the submerged lands for the post earthquake reconstruction project, the underlying property which the City conveyed to the Corps in 1965 was reconveyed to the City by two quitclaim deeds executed on September 23, 1999 (deeds covered Tract No. 100 and Tract Nos. 101E and 102E). These deeds were recorded February8, 2000. It therefore appears, and we assume for purposes of this memorandum, that the City owns the tidelands and submerged lands under the Breakwater and the filled land. That ownership and use of the areas are subject to the following: 1. Navigational Servitude. CONFIDENTIAT. Since the City owns the adjacent uplands, it would have rights of a littoral landowner. A littoral landowner (particularly if the owner also holds title to the adjacent submerged lands) generally has the littoral right to wharf out or create filled areas, subject to proper permitting requirements. However, this right is subordinate to Navigational Servitude. Navigational Servitude is a federal right to use tide and submerged lands for. navigational purposes, which, if not exercised bythe federal government, may be exercised by the state or apolitical subdivision. Navigational Servitude is a dominant servitude which extends to all lands below the ordinary highwater mark and is grounded in the power of the federal government to regulate commerce. Where it applies, Navigational Servitude continues regardless of ownership of tide and submerged lands, and under this doctrine the federal government may, at any time, construct levees and breakwaters, dredge channels, deposit dredged materials, and make other improvements to aid navigation. The use of tide or submerged lands by the Corps under Navigational Servitude is not considered a governmental taking and no compensation is required. To waive or abandon this right takes specific action by the federal government. Waiver of Navigational Servitude may not be implied but must be surrendered in unmistakable terms_ United States v. Cherokee Nation of Oklahoma, 480 U.S. 700 (1987). Such a waiver has not occurred in this case. 1:WocsW33710011Genera120051M2Ransom re Harbor Breakwater.wpd 7 Scott Ransom, Harbormaster Re: Small Boat Harbor Breakwater Fill Area Our File No. 4337.4102 July28, 2005 Page 4 2. Construction and Access Under the Agreement. CCidFIi I NTIAL The Corps may supplement its authority to create aids to navigation under Navigational Servitude by seeking local cooperation by agreement to provide necessary lands, easements, or rights -of -way for navigational improvements. In addition to the authority assumed by the Corps under Navigational Servitude, use of the Breakwater and filled land is also covered by the Agreement. The Breakwater is one of the "general navigation features" under the Agreement an an item the Corps has agreed to construct and operate to aid navigation. The City agreed to provide access to the property it owns or controls for federal operation and maintenance of the Breakwater. Notwithstanding the lack of Corps ownership of the tide and submerged lands on which the Breakwater is constructed, both the Agreement and Navigational Servitude give the Corps access to the Breakwater, and the use of the Breakwater must be coordinated with the Corps. As part of the current harbor improvements, the City approved the Agreement providing the Corps access to the land necessary to complete the navigational improvements. The local contributions to the- project included not only access to lands to construct the Breakwater but also for disposal of dredged materials. Under the Agreement, the Corps did not want title to land: "However, nothing contained herein, shall convey to the Government any interest in real property owned or controlled by the Non -Federal Sponsor."4 Furthermore, the actions by the Corps to extend the Breakwater, dredge the channel, and incidently create dry land through the deposit of dredged materials did not give the Corps title to such land or material deposited. The City's acceptance of BOD Disposal Area 1 returns day to day control of the filled land to the City but does not waive Navigational Servitude. With this in mind, the City may otherwise make use of the filled land subject to the caveats contained in this memorandum. 3. Patent Restrictions. C(OF11bti� fiJkL Use of the filled area may also be subject to reservations and exceptions as contained in the U. S. Patent and any other valid existing rights, reservations, easements and use restrictions (including state patent). An updated survey and title report are necessary to determine reservations and exceptions of -record. For example, Tidelands The City is referred to as the Non -Federal Sponsor in the Agreement. 1:113=1433710011Genera120051M211ansom re Harbor 8reakwater.wpd E Scott Ransom, Harbormaster Re: Small Boat Harbor Breakwater Fill Area Our File No. 4337.4102 July 28, 2005 Page 5 Patent No. 232 expressly reserves to the State of Alaska all mineral rights and is subject to the restriction that no one can take herring spawn in the waters or over the tidelands conveyed nor can anyone on the property engage in the sale, barter or exchange of the herring spawn for profit except that herring spawn can be used by state residents for personal consumption or "barter or exchange for the necessities of life, pursuant to AS 16.10.140-170 as amended." 4. Miscellaneous Federal and City Restrictions. ColiFIDEIJTIAL / Absent other restrictions by law or agreement, the City, does have power to operate the harbor as a public facility in a manner consistent with Navigational Servitude. Charter § 4.10 provides: "The council shall regulate the use and development of all waters and submerged lands which are subject to the jurisdiction of the city.". Howeverhiease no e tilled ia cl.) I he Ha mprovements Final Interim —l I I Feasty eport, Volume 2j 'September 1998, indicates that the area is in the high risk seismic hazard area and that there may be restrictions on the use of federal funds in such areas for certain new construction. ;.Any use of the filled land must also comply with Seward City Code ("SCC") 15.25, Floodplain Management. The Breakwater and the filled land appear to be located in the coastal high hazard area under SCC § 15.25.050 D and special restrictions apply to construction in such areas in addition to the general provisions of SCC § 15.25.030. Most notably, the use of fill for the support of buildings within zones VI-V30 on the Flood Insurance Rate Map is prohibited. SCC § 15.25.050 D(4). Other planning and zoning provisions may also apply depending on the proposed use. For example, camping areas must be designated by City Council resolution under SCC § 7.15.010 and SCC § 11.15.100. 5. Geophysical and Other Considerations. COtNTFI0E11TIAL The preceding comments refer to only legal restrictions. The City provided the Corps access to the area now comprising the filled land only for deposit of dredged materials. It was not the intention of the project to create land for any particular purpose and, therefore, the type of dredged materials deposited and the extent of compaction may not meet engineering specifications for construction of improvements. As a practical matter, soil stability should be tested prior to any use and consideration should be given to the cost of any improvements and allocation of risk in the event im rovemen s must be removed to allow additional use of the area by the Carps or navigational maintenance or improvemen s. I:ID=c 433710011General 20051M2Ransom re Harbor Breakwater.wpd E Scott Ransom, Harbormaster Re: Small Boat Harbor Breakwater Fill Area Our File No. 4337.4102 July 28, 2005 Page 6 *** For all these reasons, the Breakwater and filled land should not be considered available for disposition by sale or lease in the same manner as other City lands. And, as noted, even use by the City of the filled land may be limited to uses such as parking and other uses not involving significant structures and any improvements made are subject to removal if the Corps again requires use of the filled land for navigational aid purposes. coium'ENTjUE 1:1Docs1433710011General 20051M2Ransom re Harbor Breakwater_wpd 10 DEPARTMENT OF THE ARMY U.S. ARMY ENGINEER DISTRICT, ALASKA P.O. BOX 6898 ELMENDORF AFB, ALASKA 99606-0898 EPLY TO wtTEPMON OF: District Commander Philip Oates, City Manager SEP 2 ` 20017 City of Seward Ul P.O. Box 167 CITY Of SEWARD Seward, Alaska 99664 CITY MANAGER Dear Mr. Oates: I am writing in response to your request to surrender the Federal government's right to Navigational Servitude on the 3.5 acres of disposal area created by the Seward Harbor Navigational Improvements Project. Regrettably I cannot surrender this right. This is a right embedded in the Constitution that the U.S. Army Corps of Engineers cannot waive. Under the provisions of Navigational Servitude, if future operations by the United States require the removal, relocation, or other alteration of this disposal site, the City of Seward will be required, upon due notice from the Corps of Engineers, to remove, relocate, or alter the structural work, without expense to the United States. No claim shall be made against the United States on account of any such removal or alteration. However, like an encumbered lease, you may make further improvements or conduct other uses for this property as long as you recognize the risk associated should the Federal government exercise its Navigational Servitude authority at a later date. I need to emphasize that the Corps has no responsibility to maintain this disposal area including the rock slope protection on the outside perimeter of the disposal area. Also, the Corps will need access to inspect the former entrance channel and breakwater. That said, at the present time I do not see any circumstance where we would exercise our Navigational Servitude again on this property. —Should--we plan - to -do -so; fhb— City of Seward wou7cT-be - recognized- as either the local cost sharing sponsor or as a stakeholder and be invited to any discussions on any project affecting this area. Please feel free to contact me on this matter. Any technical questions should be directed to Mr. Bo Wierzbicki, Project Manager, at (907) 753-5778. Sincerely, Kevin J. Wilson Colonel, Corps of Engineers District Commander 11 I FN U TRYCK NYMAN HAYES, INC. MEMORANDUM 911 West Eighth Avenue Anchorage, Alaska 99501 907.279.0543 - 800.770.0543 Fax: 907.276.7679 Email: tedt@tnh-inc.com TO: Karl Anderson PAGES: 2 FROM: Kim Nielsen DATE: 8/13/08 SUBJECT: South Harbor Fill Area I understand that the City is interested in moving forward with creating a development plan for the new South Harbor Fill Area and has a few questions regarding engineering foundation considerations and other requirements in this new area. The following is an attempt to answer and briefly explain these concerns as we understand them. 1. Question Regarding Navigational Servitude and the Coros of Engineer's Restrictions on Use: As far as I know there are no restrictions on developing the south fill other than the potential for "Navigational Servitude". This term refers to the Federal Government's right to .claim land within waters of the U.S. in the interest of navigation. Technically the south fill area is still considered "waters of the US" and is subject to Navigational Servitude if for some reason it was ever needed. So, it does apply, but it is a very remote possibility that it would ever be exercised. I believe the Corps sent the City a letter in August of 2007 that addressed their request for the Federal Government to waive Navigation Servitude for the south fill area. The letter said that the Corps cannot waive this; however it is very unlikely that the City would ever be asked to remove any improvements constructed on the fill area. The US Army Corps of Engineers (Corps) designed, built, and paid for a significant portion of the South Fill Area/breakwater. Maintenance of the breakwaters and entrance channel is the Corps' responsibility. The south fill uplands area and other non-federal features are local sponsor responsibility for maintenance. This means that the Corps will need access to the edge of the breakwater on all sides in order to perform maintenance to the armor rock slopes. I talked to Alan Jeffries at the Corps about the 0&M requirements on the breakwater. He consulted with the 0&M branch chief, who indicated that they don't require the City to provide an easement to allow access for land -based maintenance on the breakwater or entrance channel. However, you should clarify whether it is the City or Corps responsibility for maintaining the north and south rods slopes of the fill area. If it is the City's responsibility to maintain those, you may want to consider an easement of sufficient width to facilitate land - based maintenance work. The "boardwalk" shown in TNH's concept plan could be designed to accommodate these loads. The City should contact the Corps and/or the City Attorney to confirm this and any additional requirements or restrictions. However, if restrictions do apply, one outlet you may want to investigate is the federal requirement for beneficial use of dredged material. The federal government encourages beneficial use of dredged material for things such as restored wetlands, fish habitat, and parks, etc. The conceptual development plan for the South Fill Area which includes a portion of the area being used for recreation —with a fishing pier, pavilion, mariner's memorial, etc. More information can be found at http://el.erdc.usace.armv.mil/dots/budm/budm.cfm 2. Question Regarding Geotechnical Considerations for Building Foundations at the South Fill Area: It is known that the South Fill Area consists of dredge spoils which were placed during the US Army Corps of Engineers' breakwater project (2005). Because this was essentially a dredged material disposal area, Engineering Surveying Landscape Architecture 12 911 West Eighth Avenue IFN Anchorage, Alaska 99501 907-279.0543 - 800.770.0543 Fax: 907.276.7679 TAYCK NYMAN HAYES, INC. Email: tedt@tnh-inc.com the Corps did not conduct any compaction of the material as it was being placed. The material, primarily sand, was pumped into the area and dewatered on its own without any special measures taken. We understand that there is some concern within the City that this fill will continue to settle over the years and that adequate compaction may not be achieved during construction. As part of the design of the South Harbor access trestle, road, utilities, and restroom facilities, TNH, Inc. subcontracted geotechnical engineers from Shannon & Wilson, Inc. (S&W) in 2006 to conduct a subsurface geotechnical investigation including four soil borings at several locations in the new fill area. Their foundation design recommendations were followed in the design of these facilities. Note that it has been over 3 years since placement of the fill and 2 years since this investigation was conducted. Most natural settlement and compaction of new fill areas are generally expected to occur over 2-3 years. We do not expect significant additional natural settlement of the existing granular fill. During the 2006 geotechnical investigation, the soil borings encountered 17.5 to 20.5 feet of granular fill overlying native silty sand. The relative density ranged from loose to medium dense with moisture contents between 3 and 12%. Below the fill, the borings encountered loose to dense, clean to slightly silty sand with moisture contents between 18 to 22%. Water was encountered in the borings between 15 and 21 feet below ground surface. These levels are expected to change as tidal changes are experienced. The design of building foundations must consider the bearing support capabilities of the soils as well as the expected settlements and the effects of seasonal frost action. The 2006 borings indicated that the interlayered slightly silty, gravelly, sandy soils that were encountered in the area of the restroom facility were already relatively compact. It is likely that because the dredged sediments used to create this fill area were saturated with water when they were placed, a significant amount of compaction occurred very quickly. S&W's recommendations indicated that the existing medium dense fill would provide adequate support for the restroom facility. The restroom facility was designed accordingly using adequately sized continuous strip footings and a concrete floor slab. We do recommend a new geotechnical investigation prior to design/construction of new building foundation(s), to obtain information specific to the area and cater the foundation design appropriately. 3. Question Regarding a Reguirement for Pile Foundations: I recall that this question came up previously when we were permitting the South Harbor Restroom facility with the City of Seward. The City indicated that the City code follows FEMA requirements regarding flood zones. There is a City code that references construction in "Coastal high hazard areas" which are located in a flood hazard area per FEMA. These areas have special flood hazards associated with high velocity waters from tidal surges. These are usually areas located below the high water mark and are related to FEMA's flood hazard insurance maps which identify these areas. The problem is the new fill area did not exist when the flood map was created —this area was navigable ocean at the time the map was last updated and therefore it was included in the flood hazard zone. Obviously, a structure build over the water must be on piling. So, the confusion about the requirement for piling foundation in flood hazard areas results from this outdated map designation. Again, from a geotechnical/engineering standpoint a pile foundation is not required for any structure constructed sufficiently above the recorded extreme high tide line of 15- ft elevation (MLLW) in this area. In this case, it is recommended that the City allow for a variance. However, there may be a need within the City to get the FEMA maps updated to adequately reflect the flood designation for the south fill area and other new fill areas around the harbor. (Note that the new south fill area is at the same elevation as the former breakwaters, which are not designated as flood zones in the old flood map). Engineering Surveying Landscape Architecture 13 4 i L'�Wrfll . 311vis 1A 4AIAf: 0309&-Uol�nC�� Nc?c9GnnU'-dIL- 1.�,[R VCR: 0-TEr CA 16 xo� fell if .1 Too b it y . s - s y I .R r r' 7r f°T Y pbrp � 3 o W�ui �n 3 nu M-\03096.006 SOUTH HARBOR UPLANDS\0400 DRAWINGS\401 WORKING DRAWINGS\03096.006 8 � : PLAN.DWG, Revised 11/19/2008 12,0528 PM i CD a.-0' 2 x 8 CONT. 2x6 CONT. X4 POST ® 8'-0" O.C. 2X4 RAIL CONT, X8 CURB CONT. IX TREX—TYPE DECKING RESSURE TREATED 2X JOISTS ® 12" ADJUS ABL GLULAM BEAM CAD O.C. GALV. 16'-0" O.C. STEEL SONO TUBE BRACKET FOUNDATION 1 BOARDWALK 1 1 SCALE:3/8"=1'-0" 2x8 CONT. 2x6 CONT. 4 POST ® 8'-0" O.C. 2X4 RAIL CONT. FX4 X8 CURB CONT. TREX—TYPE DECKING RESSURE TREATED 2X JOISTS ® 12" O.C. ADJUSTABLE GLULAM BEAM GALV. 16'-0" O.C. STEEL SONO TUBE Crry OF SEWARD BRACKET FOUNDATION SEWARD SOUTH HARBOR BOARDWALK SEWARD SOUTH HARBOR w—e 2 BOARDWALK @OVERLOOK BOARDWALK SECTIONS SEWARD, ALASKA 1 1 SCALE:3/8"=1'-0" ` SCALE IN FEET ft M = ors FIGURE 2 are „-,e-moe mr: woae.aas euwva¢K tt GiY OF SEWMD E SEWARD, A ASNA a SOUTH HARBOR UPLANDS FILL AREA CONCEPTUAL DEVELOPMENT PLAN . wasovr Axmmuc �1D TWO OPTIONSs TAYCK LAYMAN NAB W— gn..�, d.�.�.._�,.�. N N 3 3 m 3 --- S001H HARBOR si taT 1 1 L---q BLOCK 8 I i 6S' m x m° I LO r 2 I N C i � z S -T- I f 66�r, I OCEANNEw I sum Bo' I I BLOCK 7 I I I I I VAN BUREN ST. I 80, e� NOTES 1 These parcels ore subject to the City Of Seward"s inning 15 I ' 1 I and land use regulations. to 2 No permanent structure may be constructed or placed 1 — J 11� I within a utility easement which would interfere with the BLOCK 6 J 16 ability of a Utility to u e the easement. Is'. I SMALL BOA -RBOR If —7—F--j I l9 1 1] I 12 �3 v J A TS 174 Seword Boat Horbor "� I 1 � t • II1 �.F2•m.MA3 M4 — ,�z}� ±sue+ 77 777T .._kT SS? `BSc � • \ M i f a. i ------- - - — - - -- - - - - - .s -7 j v 1F r `�--'----------'----'----'----'� �" ----- - y/ _ J- ____ ________ _ ____ LOT 17A J I — J I � \ BLOCK 6 7 ' ` 'S• 9.63 Ac._ yC <f�KF f < AAj�Bf AOO/BON I r• &OCK a 2 C�, 1aDa L _ JiL'�JI BLOCK 6 I IA.1. \ F� I 1 I 1 � \I 11 G �\ m L-:� 60' I BLOCK 7\ SURVEYORS CER77FICATE I hereby certify that; I am properly registered and licensed to practice land surveying in the State of Alaska, this plat represents a survey mode by me or under my direct supervision, the monuments shown hereon actually exist as described, and a,, dimensions and other details are correct to the normal standards or practice of land surveyors in the State of Alaska. Date = �+ptE......... 4C♦6 i {Lri J ♦♦ . .......4h ..% ♦� •.........................................1.... ^" Wm. Nicholas Cline � �= Co' vd r ♦�`ESSOMx� �r UPLANDS LINE TABLE LINE DISTANCE LI S 85.58' L2 S 2R37' L3 N M44J5.A40C 6744' L4 N 15.82' L5 S 14.90 16 S35.90' WASTEWATER DISPOSAL 33 �,.. ,._ 3 T 35-1- 36' Pions forwastewater disposal, that meet regulatory i' requirements are on file of the Deportment of TIN TIS ii 4 Environmental Conservation. tAbt°j� m 4 '3 This 2 1 �. Xr h Plot Re 5.rrection Bay Id f? C r 9 10 i 11 VICINITY MAP 1 "=1 MILE A TS 174 Resurrection Boy CURVE DATA CURVE RAD/US DELTA LENGTH CHORD BfARlNG CI 21700� I65354" 64.00' :77' NO876'Sg"E We hereby certify that we are the owners of the real property shown and described hereon and that we hereby adopt this plan of subdivision, and grant all easements by our free consent. City Manager City of Seward P.O. Box 167 Seward, AK 99664 NOTARYS ACKNOWLEDGEMENT FOR.' SUBSCRIBED AND SWORN TO BEFORE ME THIS DAY OF ,20 - NOTARY FOR ALASKA MY COMMISSION EXPIRES PLAT APPROVAL This plat was opproved by the Kenai Peninsula Borough Planning Commission at the meeting of. Borough Official LEGEND 40 Found Monument PRELIMINARY PLAT ® B Found PK & Al.il Found RB Cap SEWARD SMALL BOAT HARBOR O Set RB & Pt Cap SOUTH HARBOR ADDITION • Found Rector A RESUBDIVISION OP Uplands Parcel Boundary LOT 17, BLOCK 6 SEWARD SMALL BOAT HARBOR ---- Tidelands Parcel Boundary PLAT NUMBER 2000-19 ^--�-�-�---- Vacated Property Lines LOTS 8 THROUGH 20, BLOCK 8, LAUSN£R ADD1770M ----------- Existing Easments PLAT NUMBER 2 ----------- Proposed Easement AND A PORTION OF ALASKA TIDELANDS SURVEY 174 —: Sanitary Sewer PLAT NUMBER 39 — waterline LOCATED IN THE SW 114 SECTION 3 -m—m- Storm Drain TIS, R1W, SEWARD MERIDIAN, ALASKA —•— Underground Electric KENAI PENINSULA BOROUGH --- Overhead Utility lines CITY OF SEWARD ® Sewer Manhole SEWARD RECORDING DIS7RICT I Water V.W- Box 1K Fire Hydrant CLINE AND ASSOCIATES Ili Storm Drain Manhole LAND SURVEYORS - e-- Power Poles Guy Anchor 416 4th AVENUE PO BOX 2703 SEWARD, AK 99664 m Electric Facilities (907) 224-7324 FAX (907) 224-6088 DA 7E: 12 JI12008 SCALE: 1" = 100' DRAWN. WC FD. BK.: D8-07 DRAWING NO.: 08-46PP72009- a Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE CONCEPT OF THE MARINERS MEMORIAL FOR THE SMALL BOAT HARBOR WHEREAS, many historic settlers of Resurrection Bay arrived by boat; and WHEREAS, the first pioneer settlers of Seward arrived by steamship from Seattle; and WHEREAS, Seward's position as an ice -free seaport in south-central Alaska has directly influenced our history and economy; and WHEREAS, Seward currently does not have a memorial honoring those who have risked hazardous sea voyages in the course of building our community and others who lost their lives in our local waters; and WHEREAS, the fishing industry has been a mainstay of the community for more than a century; and WHEREAS, memorial plaques commemorating local mariners do not have a dedicated memorial for display; and WHEREAS, the Mariners Memorial would provide a good venue for Seward's annual Blessing of the Fleet and other marine -oriented ceremonies, and WHEREAS, a Mariners Memorial will serve as a monument to our maritime history; and WHEREAS, a donation in March 2004 of $1000 (one thousand dollars) by the Kenai Fjords Yacht Club has started a Mariners Memorial Fund through the 2003 Seward Centennial non-profit account; and WHEREAS, resolutions of support for the concept of the Mariners Memorial have been passed by the Port and Commerce Advisory Board, the Seward Historic Preservation Commission and the Seward Planning and Zoning Commission; and WHEREAS, additional donations and grants to fund the design, construction, and maintenance of a Mariners Memorial will continue to be sought by local organizations and individuals. 24 CITY OF SEWARD, ALASKA RESOLUTION 2006-49 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seward, Alaska that: Section I. The Council of the City of Seward, Alaska supports the concept of a Mariners Memorial for the Seward Small Boat Harbor. Secdon 2. The design, construction, and maintenance of the memorial will be funded by grants and donations to the Mariners' Memorial Fund. Section 3. This resolution shall take effect immediately upon its adoption PASSED AND APPROVED by the Council of the City of Seward, Alaska this Sth day of May, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: Dunham, Valdatta, Lorenz, Thomas, Schafer, Bardarson, Shafer NOES: None ABSENT: None ABSTAIN: None ATTEST: henna Dollerhide "Actin,&,I;jLvClerk O 1 1 25 Council Agenda Statement Meeting Date: May 8, 2006 Through: Clark Corbridge, City Manager From: Malcolm Brown, Planner Agenda Item: Supporting the concept of the Mariners Memorial for the Seward Small Boat Harbor BACKGROUND & JUSTIFICATION: The Kenai Fjords Yacht Club has submitted a request of support for the concept of a Mariners Memorial for the Seward Small Boat Harbor. This has been an ongoing project for several years. Numerous civic and social organizations throughout the community support the Mariners Memorial. Letters of support, including the Port and Commerce Advisory Board, Resolution 2004-07 the Historic Preservation Commission, Resolution 2006-01 and the Planning and Zoning Commission 2006-10 are included in the packet for review. A Mariner's Memorial Fund has been established at the First National Bank. Local organizations and individuals will continue to pursue additional donations and grants to fund the design, construction and maintenance of the Mariner's Memorial. FISCAL NOTE This activity does not require appropriation of any funds. Approved by Finance Department RECOMMENDATION: Council approve Resolution 2006-XX, supporting the concept of the Mariners Memorial for the Seward Small Boat Harbor. 26 CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2004-07 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE DESIGNATION OF A PORTION OF THE NEW SOUTH HARBOR UPLANDS ADDITION AS THE SITE FOR A MARINERS' MEMORIAL WHEREAS, Seward's history and economy are tied to its position as a seaport; and WHEREAS, Seward has no memorial representing the many locals who dedicated their lives to service at sea, and others who lost their lives in our local waters; and WHEREAS, survivors of local mariners have had memorial plaques made but have no where designated to display them; and WHEREAS, Seward has no good venue for its annual Blessing of the Fleet and other marine -oriented ceremonies; and WHEREAS, a mariners' memorial could also serve as a reminder of our maritime history and the importance of safe boating practices; and WHEREAS, the local Kenai Fjords Yacht Club donated $1000 (one -thousand dollars) in March 2004 to start a Mariner' Memorial Fund through the 2003 Seward Centennial non-profit account; and WHEREAS, other donations and grants would be sought by local residents and organizations to fund the design, construction, and maintenance of the mariner's memorial. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA, THAT: Section 1. The Port and Commerce Advisory Board supports designating a portion of the new south harbor uplands addition for the location of a mariners' memorial. Section 2. The mariners' memorial would be funded by the Mariners' Memorial Fund. Section 3. Other donations and grants would be sought to fund the design, construction, and maintenance of the mariners' memorial. Section 4. This resolution shall take affect immediately upon its adoption. 27 CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2004-07 PASSED AND APPROVED by the Port and Commerce Advisory Board of Seward, Alaska, this I st day of September 2004. PORT AND COMMERCE ADVISORY BOARD DEBORAH ALTERMATT, CHAIR AYES : Altermatt, Lechner, Tougas, Van Buskirk, Jordan, Waliezer, Whitman, NOES: None ABSENT Mercer ABSTAIN: None ATTEST: �s�;,n�aeorue�a, Yity Seal) 00 1 : 1 • N Sponsored by: Staff CITY OF SEWARD, ALASKA HISTORIC PRESERVATION COMMISSION RESOLUTION 2006-01 A RESOLUTION OF THE SEWARD HISTORIC PRESERVATION COMMISSION, SUPPORTING THE CONCEPT OF THE MARINERS MEMORIAL FOR THE SEWARD SMALL BOAT HARBOR WHEREAS, the first ship built in Alaska is believed to have been built in the Resurrection Bay area; and WHEREAS, the historic settlers of Resurrection Bay all arrived by boat; and WHEREAS, the first American pioneer settlers of Seward arrived by steamship; and WHEREAS, Seward's history and economy has continued to be directly influenced by its position as an ice -free seaport in south central Alaska; and WHEREAS, Seward does not have a memorial honoring those who have risked hazardous sea voyages in the course of building our community and others who lost their lives in our local waters; and WHEREAS, the fishing industry has been a main stay of the community for more than a century; and WHEREAS, memorial plaques commemorating local mariners currently do not have a dedicated memorial for display; and WHEREAS, Seward needs a good venue for its annual Blessing of the Fleet and other marine -oriented ceremonies, and WHEREAS, a Mariners Memorial will serve as a monument to our maritime history; and WHEREAS, the Kenai Fjords Yacht Club donated $1000 (one thousand dollars) in March 2004 to start a Mariners' Memorial Fund through the 2003 Seward Centennial non-profit account; and WHEREAS, local organizations and individuals will pursue additional donations and grants to fund the design, construction, and maintenance of a mariners' memorial; 29 Seward Historic Preservation Commission Resolution 2006-01 Page 2 NOW, THEREFORE, BE IT RESOLVED by the Seward Historic Preservation Commission that: Section 1. The Historic Preservation Commission supports the concept of a Mariners Memorial for the Seward Small Boat Harbor. Section 2. The design, construction, and maintenance of the memorial will be funded by grants and donations to the Mariners' Memorial Fund. Section 3. This resolution shall take effect immediately upon its adoption PASSED AND APPROVED by the Seward Historic Preservation Commission this 15'' day of February 2006. THE CITY OF SEWARD, ALASKA om Swann, Vice -Chair AYES: Park, Rowell, Walker -Hettinger, Swann NOES: None ABSENT: Huber, Carpenter, Kovac ABSTAIN: None ATTEST: de Lewis, MC C Clerk, (City Seal) ,� 1 S 1 � ° Sponsored by: Applicant CITY OF SEWARD, ALASKA PLANNING AND ZONING COMMISSION RESOLUTION 2006-10 A RESOLUTION OF THE SEWARD PLANNING AND ZONING COMMISSION, SUPPORTING THE CONCEPT OF THE MARINERS MEMORIAL FOR THE SMALL BOAT HARBOR WHEREAS, many historic settlers of Resurrection Bay arrived by boat; and WHEREAS, the first pioneer settlers of Seward arrived by steamship from Seattle; and WHEREAS, Seward's position as an ice -free seaport in south-central Alaska has directly influenced our history and economy; and WHEREAS, Seward currently does not have a memorial honoring those who have risked hazardous sea voyages in the course of building our community and others who lost their lives in our local waters; and WHEREAS, the fishing industry has been a mainstay of the community for more than a century; and WHEREAS, memorial plaques commemorating local mariners do not have a dedicated memorial for display; and WHEREAS, the Mariners Memorial would provide a good venue for Seward's annual Blessing of the Fleet and other marine -oriented ceremonies, and WHEREAS, a Mariners Memorial will serve as a monument to our maritime history; and WHEREAS, a donation in March 2004 of $1000 (one thousand dollars) by the Kenai Fjords Yacht Club has started a Mariners' Memorial Fund through the 2003 Seward Centennial non-profit account; and WHEREAS, additional donations and grants to fund the design, construction, and maintenance of a mariners' memorial will continue to be sought by local organizations and individuals. NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning Commission that: 31 Seward Planning and Zoning Commission Resolution No. 2006-10 Page 2 Section 1. The Planning and Zoning Commission supports the concept of a Mariners Memorial for the Seward Small Boat Harbor. Section 2. The design, construction, and maintenance of the memorial will be funded by grants and donations to the Mariners' Memorial Fund. Section 3. This resolution shall take effect immediately upon its adoption PASSED AND APPROVED by the Seward Planning and Zoning Commission this 4th day of April, 2006. THE CITY OF SEWARD, ALASKA M� 'anna Keil, Chai AYES: Strobel, Roach', Hohl, Anderson, Clark, Smith NOES: None ABSENT: Keil ABSTAIN: None ATTEST: *Cityy k 1� N ♦;♦ i Viy P� ��is JrC ®: SEAL cr i� ��rPt.eatia:+�. 32 Port and Commerce Advisory Board Agenda Statement Meeting Date: May 5, 2010 To: Port and Commerce Advisory Board Through: Ron Long, Chair From: Suzi Towsley, Executive Liaison Agenda Item: Annual PACAB priorities April 2010-April 2011 BACKGROUND & JUSTIFICATION: Annually the Port and Commerce Advisory Board (PACAB) establishes their priorities. Some of these priorities are continuing action items form 2009 to 2010. The Board reviewed these priorities during a joint work session with City Council on March 9, 2010. During PACAB's regular meeting on May 5, 2010 the board approved and updated the priorities listed in the resolution. RECOMMENDATION: The Port and Commerce Advisory Board should approve and forward Resolution 2010-03 to City Council establishing the annual PACAB priorities from April 2010-April 2011. 33 Sponsored by: Administration CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2010-03 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL APPROVAL OF PACAB PRORITIES FROM APRIL 2010 TO APRIL 2011 WHEREAS, PACAB's responsibilities are listed in SCC § 2.30.325 Powers and Duties; and WHEREAS, at the May 5, 2010 meeting PACAB discussed and reviewed their priority list; and WHEREAS, PACAB and Seward City Council held a March 9, 2010 joint work session to review and update the current priority list; and WHEREAS, at their May 5, 2010 Regular Meeting PACAB reviewed and recommended adoption of the 2010 priority list. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA that: Section 1. The following list of priorities hereby be adopted; PRIORITIES: (1) Review and make recommendations for changes to SCC Chapter §7.10 (2) Review and make recommendations for changes to the Port & Harbor Tariff Regulations (3) Review and update the 1993 Small Boat Harbor Management Plan (4) Review Harbor and SMIC Enterprise Fund Budgets for 2011 (5) Provide recommendations for Land Use Policies, and evaluate Lease vs Sale of City Property (6) Provide ideas for expanding port activity including "loss leaders" scenarios (7) Review Harbor Policy for Vessel Repair & Maintenance Activities (8) Recommend Federal and State Priorities (9) Review City Budget and input priorities for council consideration (10) Review SMIC Development Plan and Upland Boat Work Policies 34 Seward Port and Commerce Advisory Board Resolution 2010-03 Page 2 Section 2. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of Seward, Alaska, this 51h day of May, 2010. AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Jean Lewis City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Ron Long, Chair 35 Port and Commerce Advisory Board Agenda Statement Meeting Date: May 5, 2010 To: Port and Commerce Advisory Board l� From: Community Development Director Christy Terry f I Agenda Item: Foreign Trade Zone discussion BACKGROUND & JUSTIFICATION: One of PACAB's many important responsibilities is to make recommendations to the city council concerning the design and coordination of projects to promote and develop transportation, trade, energy and commerce throughout Seward. Members of the public have been encouraging the Administration to evaluate and pursue the possibility to establish Seward as a U.S. Customs Port of Entry and obtain status as a Foreign Trade Zone. The administration would like an initial recommendation from PACAB if to engage in fact finding to bring a recommendation forward to the Board on the economic potential, costs and logistics of either obtaining the Foreign Trade Zone or Subzone designation. Additionally, it would be helpful for the Board to discuss how they would like to engage in the process i.e. work session, presentation, members/staff fact finding. Seward has supported both the Kenai Peninsula's and the Municipality of Anchorage's applications for the designation to include the City of Seward. Those resolutions are attached. The Borough did not obtain this status, but the Port of Anchorage is designed as a Foreign Trade Zone. Also attached you will find the basic application process and basic benefits of the Foreign Trade Zone Program. CONSISTENCY CHECKLIST: Where applicable, this motion is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: NA FISCAL NOTE: There is no fiscal impact at this application process there will be costs associated. should the designation be obtained. RECOMMENDATION: ime. If the City eventually chooses to pursue the There is also the potential for additional revenue Provide recommendations to City Administration on how/if to proceed with additional efforts on the Foreign Trade Zone designation process. �cW Article 3. Port and Commerce Advisory Board 2.30.310. Established. (a) The port and commerce advisory board is hereby created, consisting of seven residents of the City of Seward or surrounding areas, and who shall be appointed by the council. If there is more than one applicant for the position, the council shall appoint by ballot voting. (b) A chairman of the board shall be selected annually by the appointed members. (c) The city manager will appoint a city employee to serve as an ex officio member of the board who shall have the privilege of the floor but not the right to vote. (Ord. 512, 1982; Ord. 553, § 1, 2, 1986; Ord. 93-23; Ord. 2000-13, § 2, 2000; Ord. No. 2006-02, § 1, 3- 28-2006) 2.30.315. Terms of office; filling vacancies. (a) Members of the port and commerce advisory board shall be appointed for a term of three years; provided, that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed for each year. (b) The council may appoint any qualified person to fill a vacancy of any member of the board provided that the appointment shall be for the unexpired term of the vacancy. (c) Following a member's absence from three consecutive regular meetings of the board, the remaining board members shall decide whether the board member should be retained or whether to request council appointment of a new member. (d) Members shall not be paid for services on the board or participation in board activities without prior approval of the city council. (Ord. 512, 1982; Ord. 93-23; Ord. 2000-13, § 2, 2000) 2.30.320. Meetings and quorum. (a) The board will meet at a time and place to be designated by the board. (b) Four members of the board shall constitute a quorum for the transaction of business except that, in the absence of a quorum, any number less than a quorum may adjourn the meeting to a later date. The affirmative votes of at least a majority of those board members present shall be required for any action. (c) All meetings and records of the board shall be open to the public. The board shall keep minutes of proceedings showing the vote of each member upon each question and shall keep records of any actions, all of which shall be immediately filed in the office of the city clerk and shall be a public record. (Ord. 512, 1982; Ord. 553, § 4, 1986; Ord. 93-23; Ord. No. 2006-02, § 2, 3-28-2006) 2.30.325. Powers and duties. (a) It shall be the responsibility of the port and commerce advisory board to: (1) Report annually to the city council at the first council meeting of the new fiscal year and at any other time as may be requested by the city council. The annual report shall include, at the minimum, a report on the prior year's activities, a list of any anticipated requests for appropriations for the year's planned activities and a recommendation regarding the continuation of the board; (2) Make.recommendations to the city council concerningthe design and coordination. of projects, to promote and develop transportation, trade, energy and commerce throughout Seward; (3) Provide input to the city council on policy and procedural matters involving the establishment and continuance of commercial activity, improving the quality of life and protecting the public's best interest; (4) Advise the city council on matters involving the establishment of support services towards the objectives outlined in subsections 2.30.325(a)(2) and 2.30.325(a)(3); (5) Perform other duties as requested by the city council. (b) The board shall have no authority to expend or commit city funds without first obtaining approval by and any necessary appropriations from the city council. (Ord. 512, 1982; Ord. 553, § 5, 6, 1986; Ord. 93-23; Ord. 2008-008, § 1, 2008) 37 Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION 99-145 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEW ARD, ALASKA, SUPPORTING AN APPLICATION BY THE KENAI PENINSULA BOROUGH FOR A U.S. CUSTOMS PORT OF ENTRY AND STATUS AS A FOREIGN TRADE ZONE WHEREAS, trade with foreign countries is becoming increasingly important in order to compete in the emerging global economy; and WHEREAS, the establishment of a U.S. Customs port of entry and a duty free foreign trade zone can be valuable economic development tools for communities wanting to compete in the global marketplace; and WHEREAS, many benefits to communities and businesses can be derived from the existence of a foreign trade zone, such as creation of new industries, new jobs and new tax revenues by reducing, delaying or eliminating customs duties, and providing a marketing tool for airports, seaports, and harbors; and WHEREAS, the Kenai Peninsula Borough has expressed an interest in obtaining additional information and possibly establishing a Customs port of entry and foreign trade zone within the Kenai Peninsula; and WHEREAS, the application process for a port of entry and foreign trade zone is in itself a feasibility study as the proposed zone must be justified to the U.S. Customs office; and WHEREAS, the proposed foreign trade zone would include areas within the Cities of Homer, Kenai, Seward, Soldotna and the Kenai Peninsula Borough since these communities have been initially identified as communities receiving the greatest benefit from the establishment of a foreign trade zone; and WHEREAS, the Kenai Peninsula Borough has proposed to pay the initial costs of preparing and submitting an application, estimated to be $45,000; and WHEREAS, the costs for establishing and maintaining a customs office and foreign trade zone within the Kenai Peninsula Borough would be shared among municipalities and companies utilizing the foreign trade zone; and 38 CITY OF SEWARD, ALASKA RESOLUTION NO.99-145 WHEREAS, such cost allocation shall be agreed upon by the participating municipalities prior to receipt of the official foreign trade zone grant of authority and official Customs port of entry status, approximately 20-24 months after the process begins; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. That the City Council supports the efforts of the Kenai Peninsula Borough in its application for establishment of a U.S. Customs port of entry and status as a foreign trade zone on the Kenai Peninsula. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 11 day of October, 1999. THE CITY OF SEWARD, ALASKA 0 Lowell R. Satin, ayor AYES: Blatchford, Callahan, Gage, King, Orr, Shafer, Satin NOES: None ABSENT: None ABSTAIN: None ATTEST: Patrick Reilly City Clerk (City Seal) ��`�- OF S�ejiy♦i�. %� Gr •• T� 0 •�•�wQ h --w" � i It \� -i • OF 39 • • Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 90_157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RATIFYING THE KENAI PENINSULA CAUCUS 1991 STATEMENT OF LEGISLATIVE POSITIONS WHEREAS, on October 20, 1990, the Kenai Peninsula Caucus approved its 1991 Statement of Legislative Positions; and WHEREAS, all member organizations have been asked to ratify this document; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Kenai Peninsula Caucus 1991 Statement of Legislative Positions, a copy of which is attached and incorporated herein by reference, is hereby ratified. Section 2. This resolution shall take effect after adoption by the Caucus of a position on health care issues equivalent to those adopted by the Alaska Municipal League. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th day of December, 1990. THE CITY OF SEWARD, ALASKA William C. Noll, Mayor AYES: Dunham, Hilton, Meehan, Noll and Sieminski NOES: None ABSENT: Burgess and Krasnansky ABSTAIN: None ATTEST: APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska TdAda Murp y, CMC Fred B. Arvidson City erk City Attorney (City Seal) 40 1991 Legislative Positions ►* Kenai Peninsula Caucus E . FOREIGN TRADE ZONE • The Caucus urges the Borough Economic Development District to initiate such actions as may be necessary to explore the feasibility of a Foreign Trade Zone within the Kenai Peninsula Borough. PART IX TORT REFORM • • The Caucus supports legislation which would enact these tort reforms: 1. Limiting Attorneys, Contingency Fees; 2. Changing the "Collateral Source Rule" so that a plaintiff could not recover twice for the same damages; and, 3. Establishing a cap of $250,000 on non -economic awards, such as those for punitive damages and "pain and suffering". Ratification Draft 11 October 20, 1990 ni( 41 Sponsored by: Schaefermeyer iCITY OF SEWARD, ALASKA RESOLUTION NO. 88-021 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, COMMITTING TO SUPPORT A KENAI PENINSULA AREA WIDE CUSTOMS PORT OF ENTRY OFFICE WHEREAS, the city of Seward has been working since 1984 to acquire customs port of entry status in an effort to hold down costs for visiting ships; and WHEREAS, the only option remaining open at this time is a Title 19 U.S. Code Section 58b reimbursable customs office under the auspices of the Kenai Peninsula Borough and located at the Kenai Municipal Airport; and WHEREAS, the location of a reimbursable customs port office at Kenai has positive benefits for Seward and the peninsula as a first step toward a full customs port of entry status and ultimately for a foreign trade zone or subzone in the future; and WHEREAS, the port of Seward has the largest percentage • of port traffic within the Borough and has agreed to finance up to 40% of the cost of a reimbursable customs office; and WHEREAS, these uses all have positive benefits in keeping the cost of doing business in the Port of Seward competitive with other ports. NOW, THEJ.2EFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The city of Seward supports the applica- tion by the Kenai Peninsula Borough for a Title 19 US Code Section 58b reimbursable customs office at the Kenai Municipal Airport. Section 2. Upon approval by the federal government and at such time as the Borough is billed, the city of Seward will provide up to 40% of the cost of said customs services costs not to exceed thirty thousand ($30,000) the first year and twenty thousand ($20,000) per year thereafter. Section 3. This resolution shall take effect immedi- ately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 22 day of February , 19 88 -1- 42 0 1J • CITY OF SEWARD, ALASKA RESOLUTION NO. 88-021 THE CITY OF SEWARD, ALASKA r HARF GIESELER, MAYOR AYES: DUNHAM, GIESELER, HILTON, NOLL , O'BRIEN & SIMUTIS NOES: NONE ABSENT: MEEHAN ABSTAIN: NONE ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN, Attorneys for the City of Seward, AK i da/S. urphy, CMC Fred B. Arvidson City Clerk City Attorney (City Seal) -2- 43 CITY OF SE kM, ALASKA • RESOLUTION NO. 86-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF S3QARD, ALASKA, SUPPORTING THE DESIGNATION OF THE PORT OF ANCHORAGE AS A FOREIGN TRADE ZONE WITH THE PORT OF SEWARD AS A SUBZONE WHEREAS, the Municipality of Anchorage is in the process of preparing application to the Foreign Trade Zones Board requesting that the port of Anchorage be designated as a foreign trade zone; and WHEREAS, the City of Seward is supportive of and will cooper- ate with the Municipality of Anchorage in its bid for foreign trade zone status; and WHEREAS, the Municipality of ANchorage has agreed to allow the inclusion of Seward as a subzone of Anchorage in its application for foreign trade zone status; and WHEREAS, it is recognized that while Anchorage is the popu- lation and consumer center for Alaska, Seward has been a traditional • bulk/breakbulk transportation and marine repair center for Alaska; and WHEREAS, subzone status for Seward would be mutually compli- mentary to both ports in that the marketability of the Seward Marine Industrial Center and the Alaska Railroad's Seward Terminal and dock would be greatly enhanced, and Anchorage's proposed foreign trade zone flexibility would be greatly increased by the addition of Seward's large land tracts with deep water and rail/highway transportation links to Anchorage; and WHEREAS, the success of a joint effort through a foreign trade zone in Anchorage and a subzone in Seward has the potential of develop- ing businesses which will create much needed jobs for both communities; and WHEREAS, Seward and Anchorage have already established close ties with Japan, Korea and other Pacific Rim countries, making such an arrangement economically beneficial to Anchorage, Seward, Alaska and the United States; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City of Seward pledges its active support to the Municipality of Anchorage in its application for foreign trade zone • status. -1- 44 0 0 CITY OF SEWARD, ALASKA RESOLUTION NO. _86_47 • Section 2. The City of Seward hereby requests consideration for subzone status under the Municipality of Anchorage application to the Foreign Trade Zones Board. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 9th day of June , 19 86 . THE CITY OF SEWARD, ALASKA AYES: Booher, Gieseler, Gillespie, Hilton, Meehan, Scholl & Simutis NOES: None ABSENT: None ABSTAIN: None • ATTEST: APPROVED TO FORM: • HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska 7,4c d Fred B. Arvidscn, City Attorney _2_ 45 Foreign Trade Zone Corporation Page 1 of 5 Print this. Page _ The Application Process When a community determines that a Foreign -Trade Zone project is needed and can be feasibly established and operated, then it must address the Foreign -Trade Zone application process. Prior to preparing the application, several questions should have already been answered: . Who will serve as the Zone Grantee? The Grantee is typically a public corporation. The proposed Grantee must qualify to serve as a Grantee under state enabling legislation concerning Foreign -Trade Zones, and, should be an organization that represents a broad segment of the community's economic interests. . Which site or sites will serve as the community's General Purpose Zone? The General Purpose Zone can be comprised of several non-contiguous sites. Industrial park areas with companies who are confirmed to be prospective users normally receive the highest priority. Sites set aside for industrial and commercial development are also often included. If sites are owned by parties other than the Grantee or other public entities, care must be taken to assure that all parties understand the potential benefits and obligations. Zone status does not confer additional value on real estate. • Who will oversee and finance the operation of the Zone project? Will it be the Grantee or some private organization? In either case, the prospective Grantee must be able to demonstrate how will public utility principles be applied in the management and use of the Zone project. The application itself consists of a letter of transmittal, an executive summary and five exhibits. These elements are outlined below with some parenthetical tips or commentary where pertinent. Letter of Transmittal . Must be currently dated and signed by officer of Grantee organization Executive Summary Briefly describes: . Type of organization making the application and its legal authority to do so . Type of Zone authority requested (In the case of a new Zone project, this should be stated. Also, state whether the Zone project is being established under the "entitlement" provision, or if it is being established as an additional Zone project within a given port of entry.) . Proposed Zone site, or sites, and the larger project of which the Zone is a part . Project background (Briefly explain the impetus for establishing the project.) . Relationship of the Zone project to the community's economic development plans 46 http://www.foreign-trade-zone.com/link07p.htm 2/10/2010 Foreign Trade Zone Corporation Page 2 of 5 . Plans for operating and financing the Zone project Exhibits Exhibit 1 -- Authority to Apply • Certified copy of state enabling legislation (Contact your Secretary of State or the Clerk of your State Legislature.) • Copy of pertinent sections of Grantee's charter or organization papers • Certified copy of Grantee resolution authorizing execution of the Letter of Transmittal and submission of the application Exhibit 2 -- Site Description • Description of Zone project with list of existing Zone sites . Proposed site or sites with appropriate legal descriptions; addresses and indications as to the legal jurisdiction of site or sites (if multiple sites, label each, i.e. "Site 1," "Site 2," etc.) • Description of the larger project of which the Zone is a part • Statement regarding adjacency to a Customs port of entry • Description of facilities and services available at the site or sites • Description of existing or proposed site qualifications (zoning, etc.) • Description of current or proposed activities • Description of transportation services and facilities • Possibilities for expansion Exhibit 3 -- Operation and financing • Site ownership and applicant's right of use (or, alternatively, indications that the owner or owners will make the site available for zone use) • Operational plan • Security • Customs automation • Plans for financing capital and operating costs • Estimated time schedule for construction and activation Exhibit 4 -- Economic Justification 47 http://www.foreign-trade-zone.com/link07p.htm 2/10/2010 Foreign Trade Zone Corporation Page 3 of 5 . Overview of community's economic goals and objectives (Discuss the community's overall economic plans. Describe the role that the Zone project plays in those plans.) . Economic profile of the community (Discuss the community's dominant economic sectors in terms of percentage of employment or income. Discuss the area's economic resources, its problems, and imbalances. Provide a description of the area's unemployment rates, foreign trade statistics. Describe the area's port facilities and/or its transportation networks.) . Provide justification for the Zone project (Describe existing need, if you have identified it. Describe the Zone project's overall goals and objectives.) . Description of each proposed site Type of site Services/facilities available or planned Proposed Zone activity Specific indication of interest . Specific justification for each proposed site Location Type of site Types of services, facilities, and parcels available Types of Zone uses that could be available Specific proposed Zone users (include surveys, letters of interest if available) Environmental Impact (each site) Status of local zoning and land use permits/issues o Will the use of FTZ procedures significantly change the physical aspects of the site, or change existing or proposed operations? o Is FTZ status or the use of FTZ procedures a requirement or precondition for construction or activity at the site? o Statement that applicant is aware that FTZ status would not exempt any site or party (e.g. operators or users) from any federal, state or local environmental requirements Manufacturing o Statement as to whether any specific manufacturing authority is to be requested in the application o If manufacturing authority is being requested o Separate discussion of proposed manufacturing operations o Detailed information on proposed activity is required (See Exhibit 4 on the "Subzone Applications" web page.) Exhibit 5 -- Maps . Local map indicating location of Zone site or sites Detailed street map o Detailed drawing of Zone sites showing Zone boundaries in red with dimensions and metes and bounds http://www.foreign-trade-zone.com/link07p.htm 48 2/10/2010 Foreign Trade Zone Corporation Page 4 of 5 . State map showing the Zone's location relative to the state's transportation networks . Geodetic (or equivalent) map of each proposed site If the Zone project is to be established as an additional Zone project adjacent to a particular port of entry, an application fee of $3,200 is required. If the Zone project is to be established under the entitlement provision, no fee is required. Review and Processing by the Foreign -Trade Zones Board In order to be approved by the Foreign -Trade Zones Board, an application goes through the following review and process: Submission and Prefiling Review Upon receipt of the application the Foreign -Trade Zones Board staff reviews it for sufficiency. If the application is deficient, it will be returned to the applicant within 20 days. If the application is found to be sufficient, then the Board formally files the application, assigns it a docket number, and notifies the applicant. This normally occurs within 45 days of submission. Formal Filing The Foreign -Trade Zones Board publishes public notice of the application in the Federal Register and assigns an examiner (an internal staff member) to the case. Public Comment Filing in the Federal Register triggers the public comment period. During the public comment period (normally 60 to 90 days) interested parties may submit comments to the Board in support of, or in opposition to, the application. Rebuttal If negative comments are received, then the applicant has up to 15 days after the close of the public comment period during which it may submit rebuttal comments to the Board. (Sometimes public comment periods may be extended in order to allow the various parties to reach a common understanding regarding the issues surrounding the application.) Public Hearing The Board arranges for a public hearing, usually in the community where the proposed Zone project is to be established. Public notice as to the time and place of the public hearing are required. Case Review The application is reviewed by the Foreign -Trade Zones Board examiner within the Department of Commerce, and by a representative of the Treasury Department, usually the office of the U.S. Customs Service having jurisdiction over the area to be served- by the proposed Zone project. Examiner's Report and Recommendation The examiner's report (comments of the Department of Commerce staff and local office of U.S. Customs) is prepared and submitted to the Executive Secretary of the Foreign -Trade Zones Board. This normally occurs within 120 days of the close of the public comment period. 49 http://www.foreign-trade-zone.com/link07p.htm 2/10/2010 Foreign Trade Zone Corporation Page 5 of 5 If the report is unfavorable, then the applicant will be notified (within 5 days of the report's submission) and the applicant will be given 30 days in which to respond with addition evidence to justify the application's approval. If the report is favorable, then the application is sent to the Treasury Department and to the office of the Assistant Secretary of Commerce for Import Administration for final review. Final Action Upon review and approval within the Departments of Commerce and Treasury, the Foreign -Trade Zones Board issues a Board Order and publishes the decision in the Federal Register and notifies the applicant of the application's approval. Typically, applications that do not involve manufacturing under Zone procedures take from 10 to 12 months for processing and review. Applications that involve manufacturing under Zone procedures typically take 12 months or longer; however, applications that involve FTZ manufacturing authority that meet so-called "fast -track review" procedures may be processed more quickly. to top http://www.foreign-trade-zone.com/link07p.htm 50 2/10/2010 Foreign Trade Zone Corporation Page 1 of 2 Print this Page Why Manufacturing and Processing Companies use Foreign -Trade Zones All of the benefits the Foreign -Trade Zones program can offer manufacturers and processors located in the United States are too numerous to list here. But, there a few main benefits that account for most of the companies that use the Zones program. Those benefits are listed below: Relief from inverted tariffs —In certain instances, there are tariff (import duty) relationships that actually penalize companies for making their product in the United States. This occurs when a component item or raw material carries a higher duty rate than the finished product. Hence, the importer of the finished product pays a lower duty rate than a manufacturer of the same product in the United States. This gives the importer an unfair and unintended advantage over the domestic manufacturer. The Foreign -Trade Zones program levels the playing field in these circumstances. FOR EXAMPLE: A Foreign -Trade Zone user imports a motor (which carries a 4% duty rate) and uses it in the manufacture of a vacuum cleaner (which is free of duty). When the vacuum cleaner leaves the FTZ and enters the commerce of the U.S., the duty rate on the motor drops from the 4% motor rate to the free vacuum cleaner rate. By participating in the Zones program, the vacuum cleaner manufacturer has virtually eliminated duty on this component, and therefore reduced the component cost by 4%. Duty exemption on re -exports —Without a zone, if a manufacturer or processor imports a component or raw material into the United States, it is required to pay the import tax (duty) at the time the component or raw material enters the country. However, a Foreign -Trade Zone is considered to be outside the commerce of the United States and the U.S. Customs territory. So, when foreign merchandise is brought into a Foreign -Trade Zone, no Customs duty is owed until the merchandise leaves the zone and enters the commerce of the United States. Only then is the merchandise considered imported and the duty paid. If the imported merchandise is exported back out of the country, no Customs duty is ever due. Duty elimination on waste, scrap, and yield loss —Again, without a zone, an importer pays the Customs duty owed as material is brought into the United States. This is because the material is considered imported at this point. If the processor or manufacturer is conducting its operations within a zone environment, the merchandise is not considered imported, and therefore no duty is owed until it leaves the zone for shipment into the United States. To demonstrate how this would benefit a company that has scrap, waste, or yield loss from an imported component, lets look at a chemical processing plant. FOR EXAMPLE: A chemical plant manufacturing hydroxywidgitpropolyne, which carries a 15% duty rate, uses the raw material oxyovertaxophene, which also carries a 15% duty rate, for one of its raw materials. Part of the production process consists of bringing the imported oxyovertaxophene to extreme temperatures. During this process 30% of the oxyovertaxophene is lost as heat. If a processing company not in the Zones program imports $10,000,000 per year of oxyovertaxophene, it will pay $1,500,000 in duty as the raw http://www.foreign-trade-zone.com/link02p.htm 51 2/10/2010 Foreign Trade Zone Corporation Page 2 of 2 material enters the United States. If the same company utilizes the zones program, it does not pay duty on the oxyovertaxophene until it leaves the zone and is imported into the United States. The zone user brings the oxyovertaxophene into the zone with no duty owed. It then processes the oxyovertaxophene into hydroxywidgitpropolyne. Remember, during this process 30% of the raw material is lost due to waste factors, so the $10,000,000 in oxyovertaxophene is now worth only $7,000,000. Assuming all of the end product is sold into the United States, the 15% Customs duty totals only $1,050,000. This represents a savings of $450,000. While at first glance it might look like the Zones program is simply benefiting an importer, it is important to remember that its competitors making the same product overseas already have the benefit of not having to pay on the yield loss in the production of their hydroxywidgitpropolyne. Duty Deferral —Again, since Foreign -Trade Zones are outside the Customs territory of the United States, goods are not imported until they leave the zone. Therefore, Customs duty is deferred until merchandise is imported from a Foreign -Trade Zone into the United States. So, instead of companies having substantial monies tied up in Customs duties on their inventory, they have use of that money for other purposes. There are many other substantial benefits that the Zones program has to offer manufacturers in the United States, but the benefits listed are the key benefits that attract most companies to the Zones program. More and more companies look globally when deciding to locate or expand a new manufacturing or processing facility. When these companies make these location and expansion decisions, they do take into account all costs of manufacturing in a certain country. Unfortunately, there are unintended import tax penalties for many companies located in, or considering locating in, the United States. The Foreign -Trade Zones program plays an important role in providing a level playing field when investment and production decisions are made. While the U.S. government might incur a reduction in Customs duty revenue by the use of the Zones program, it more than makes up for it by the income tax it gains from the jobs created or retained. In addition, local governments benefit from sales and property taxes. The Foreign -Trade Zones program has proven to be a successful trade program by consistently creating and retaining jobs and capital investment in the United States. to top 52 http://www.foreign-trade-zone.com/link02p.htm 2/10/2010 Port and Commerce Advisory Board Agenda Statement Date: May 5, 2010 To: Port and Commerce Advisory Board From: Suzi Towsley, Executive Liaison Subject: Resolution 2010-04, Recommending PACAB Revisions to Seward City Code Chapter 7, Harbor Code for City Council Adoption Background and Justification: Seward's Port and Commerce Advisory Board began revising Chapter 7, Public Property, Section 10. Harbor and Port Facilities, of the § Seward City Code in May 2009. Many hours of work have been devoted to this task. A memo is added offering legal framework for shaping these revisions. City Council has scheduled two works sessions to review both PACAB's and administration's recommendations; May 27, 2010 at 7pm and June 21, 2010 at 7pm, both in Council Chambers. Recommendation When revisions are complete PACAB should make a motion and vote on Resolution 2010-04, Recommending PACAB Revisions to Seward City Code Chapter 7, Harbor Code for City Council Adoption. 53 Wohlforth j Johnson s Brecht Cartledge Brooking Julius J. Brecht Cheryl Rawls Brooking ATTORNEYS AT LAW Cynthia L. Cartledge Michael Gatti 900 WEST 5TH AVENUE, SUITE 600 Clyde W. Hutchins Jr. Robert M. Johnson ANCHORAGE, ALASKA 99501.2048 Leila R. Kimbrell Eric E. Wohlforth MEMORANDUM TO: Phillip Oates, City Manager FROM: Cheryl Brooking, City Attorney DATE: May 3, 2010 SUBJECT: Proposed Amendments to Harbor Ordinances SCC 7.10; Our File No. 4337.4102 Telephone 907.276.6401 Facsimile 907.276.5093 Websits www.akatty.com This memorandum is provided at your request to address certain legal concerns related to proposed amendments to SCC 7.10. At this time, a copy of PACAB's proposed ordinances are not yet available for review, but I reviewed the administration's recommended changes and spoke with the Harbormaster and the Deputy Harbormaster as conversations have progressed with PACAB over the past few months. There are several legal principals relevant to suggestions regarding increasing the number of slips that can be held by a qualified vessel owner and proposals to allow assignment or subleasing of slips. When the City acquired title to the harbor from the State of Alaska, part of the agreement was a commitment from the City to manage the harbor for "public use.i' This prohibits the City from discriminating between types of users, whether commercial, non- commercial, by type of vessel or in any other manner. Court decisions distinguish the meaning of "public use" from the meaning of "public benefit" or "public purpose." Section 3 of the Transfer Agreement between the City and the State included the following language: "The [City] will administer, maintain, and operate the harbor as a public facility for the use and benefit of the public on a fair and equitable basis." The Bill of Sale dated February 25, 1999 said that the State transferred the harbor to the City "for continued use as a public facility." I:\Docs\43374102\Memo re SCC 7.10.wpd 54 Phillip Oates, City Manager Re: Proposed Amendments to SCC 7.10; Our File No. 4337.4102 May 3, 2010 Page 2 There are a series of cases throughout the United States supporting the public use requirement in a variety of contexts, such as harbors, public parks, public beaches and the like. (Cape Cod S.S. Co. V. Provincetown, 3 N.E. 2d 244 (Mass. 1936), exclusive right to use portion of public wharf and landing held invalid.) Attempts at favoring particular users or providing additional rights to certain users are uniformly struck down by the courts based on constitutional equal protection rights. The use of a slip in the Seward harbor is a privilege, and does not convey any rights to a particular slip or any ownership rights in that slip.2 A slip is assigned to the holder of a qualified interest in a particular vessel. If a corporate "person" is to be allowed to hold a slip, special restrictions would be needed to ensure the slip is relinquished upon a change in corporate ownership. A proposal that would essentially allow a corporation to hold a slip in perpetuity is prohibited because, among other reasons, it would place a public resource in private hands and would improperly allow transfer of the slip upon transferring shares of the corporation. It is my understanding that some people would like to be able to transfer a slip when a vessel is transferred. Because this is a public harbor required to be operated for the use and benefit of the public on a fear and equitable basis, the City cannot allow assignments and subleasing of slips. In addition, it has been suggested that the Code should be amended to allow a person to have up to fifteen slips (currently three) while there are names on the wait list.3 This raises concerns on several levels. There is an existing wait list and people have been on the list for many years paying their fees to the City with the understanding that when a slip becomes available, they would have the opportunity to enter into a moorage agreement. In effect, such persons have a contractual option or expectation. These individuals have paid through 2010 for that right. To avoid litigation, this type of amendment, if made, should not be effective while the persons currently on the wait list have such rights, or at least until the end of 2010. Also, please be advised that if the Code is changed, such change will not validate improper slip assignments that occurred in the past. The City could face liability if it knew of such assignments and did not enforce its wait list requirements. 2 Case law relating to public use of docks in Alaska goes back to territorial days. In the interest of time and space, I am omitting citations but can provide them upon request. ' I am not aware of any community adopting a 15 slip limit. My initial research is inconclusive in determining whether a court would uphold 15 slips or would find this to be an improper privatization of a public harbor. I:1Docs1433741021Memo re SCC 7.10.wpd 55 Phillip Oates, City Manager Re: Proposed Amendments to SCC 7.10; Our File No. 4337.4102 May 3, 2010 Page 3 As the City Council and PACAB continue to work on Title 7, please keep in mind: • The harbor must be for "public use." This is required by the agreement with the State when the City acquired ownership of the harbor, constitutional equal rights provisions, the federal shipping acts, and State law. • The City must treat all users equally and cannot give preferential rights in the harbor.4 Any analysis needs to focus on equal treatment and opportunity. • Our files contain correspondence and analysis going back to 1993, involving every City Manager and Harbormaster, seeking ways to give day cruisers or specific persons special rights in the harbor. I researched current law to see if anything has changed, and find nothing to change the earlier analysis. • Tax-exempt bonds were issued to fund capital construction in the harbor. As long as bonds remain outstanding, the City cannot transfer any portion of the harbor (by lease or sale or otherwise). If private use of these public facilities causes the bonds to be "private activity" bonds, the IRS may determine the interest on the bonds to be taxable, and such determination could be retroactive to the date the bonds were issued. • Slipholders cannot assign or sublet their slips. If the bonds are defeased, and if the State agreed to lift its "public use" requirement, and if no other restrictions apply, then maybe it could be allowed in the future. (I do not know if there are other agreements, such as grant agreements, that may also require "public use.") One last caveat: In the Kelo case decided by the United States Supreme Court a few years ago, the Court found that taking private property and giving it to a private developer was a "public use" for purposes of eminent domain. In that case, the Court essentially said that public benefit means public use. I have not seen this analysis extended outside of the eminent domain realm, and the Alaska legislature specifically amended State statutes to prohibit this type of taking in Alaska. I cannot predict what the Alaska Supreme Court might say, but based on court decisions in other jurisdictions and the legislative response to Kelo, I would guess that the courts would limit the Kelo interpretation to eminent domain and not extend Kelo to "public use" of parks, streets, or harbors. CAB/tlm 4 Limited preferential use of a public dock is limited to cargo transfers. This narrow exception allows the fuel dock to exist. hDocs143374102\Memo re SCC 7.10.wpd 56 Sponsored by: Port and Commerce Advisory Board CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2010-04 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA, RECOMMENDING CITY COUNCIL ADOPTION OF PACAB's REVISIONS TO SEWARD CITY CODE CHAPTER 7, PUBLIC PROPERTY, HARBOR AND PORT FACILITIES WHEREAS, Seward's Port and Commerce Advisory Board began revising Chapter 7, Public Property, section 10. Harbor and Port Facilities, of the § Seward City Code in May 2009; and WHEREAS, a strong, healthy economy in the Harbor and Harbor related facilities is a integral part of the economy of Seward and a goal of the Port and Commerce Advisory Board; and WHEREAS, discussion of these recommended revisions have taken place at PACAB meetings and work sessions since May 2009; and WHEREAS, the public notification process has been complied with. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA that: Section 1. The Board recommends Council adoption of the attached revisions to § Seward City Code, Chapter 7 Public Property, Section 10, Harbor and Harbor Facilities in their entirety as attached. Section 2. This resolution shall take affect immediately upon its adoption. 57 PORT AND COMMERCE ADVISORY BOARD Ron Long, Chair AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Jean Lewis, City Clerk (City Seal) City of Seward, Alaska Port and Commerce Advisory Board Minutes April 7, 2010 Volume 3, Page CALL TO ORDER The regular April 7, 2010 meeting of the Seward Port and Commerce Advisory Board was called to order at 12:03 p.m. by Vice Chair Butts. PLEDGE OF ALLEGIANCE TO THE FLAG led by Dan Oliver ROLL CALL There were present: Vice Chair Theresa Butts presiding, and Board Members Dan Oliver Darryl Schaefermeyer Rob Buck comprising a quorum of the Board Excused: Ron Long, Deborah Altermatt Absent: Paul Tougas Also were present: Jim Lewis, Deputy Harbormaster Christy Terry, Community Development Laura Cloward, Chamber of Commerce Louis Bencardino, Alaska Rail Road Representative Suzi Towsley,; PACAB Liaison Public: SPECIAL ORDERS, PRESENTATIONS, AND REPORTS - Alaska Railroad Representative, Louis Bencardino reported on the following items: • A barge was waitingto come in when the weather breaks. • There were some Alyeska Oil company personnel in the area doing spill response training. • Shell was in Seward awaiting transfer of cargo. • Alaska logistics would be bringing a vessel up in late April. • West Construction would be coming and bringing in equipment. They would be in Seward in two weeks and possibly tie up in the bay. Bencardino suggested that they stay at the dock and was negotiating with the company on that moorage. Deborah Altermatt had joined the meeting. 59 City of Seward, Alaska Port and Commerce Advisory Board Minutes April 7, 2010 Volume, Page Seward Chamber of Commerce Representative, Laura Cloward Administrative Report - Laura Cloward • The Chamber was sending two representatives to the Great Alaska Sports show. • Ms Cloward will be attending meeting in Seattle next week with the Mayor, City Manager, Ron Long and Deborah Altermatt. While there they to meet with cruise industry reps, also marine transport, Crowley, Totem Ocean express, Alaska logistics, Freezer Longline Association. • There seems to be renewed interest in wintering in the Seward area for larger vessels with a more developed industrial area for the large vessels. Many ships are now wintering in Dutch which can be a problem with weather and them being so far out. Doug Lechner was in Anchorage working to convince those long lining vessels to winter in the Seward for ease of access and improved logistics. • Mount Marathon Applications were being processed. Numbers were strong for 2010. • Cruise ship schedule was set for Seward. There had been a loss of about 30,000 in potential visitors when figured by full berth capacity of arriving ships. Loss is the potential if all ships incoming were full. Harbormaster Report: Deputy Harbormaster, Jim Lewis Regarding questions about double payment; any vessel that had paid would be good to go at either of the docks, harbor and/or SMIC. PACAB's report to Council was scheduled for April 26, 2010. The Harbormasters office had submitted J dock fire lane access paving for the street project list. Lewis encouraged board members to email Carmen at the Public Works Department with their suggestions for other projects to include in this funding. Kenai Mountain/Tumagain Arm Corridor Communities association will manage grant funding and are requesting suggestions for projects. The Harbor suggests that PABAB submit a trail with interpretative signs around the south harbor uplands, as discussed in PACAB's 2008 meetings. Q- Altermatt: Who was paying for the J dock paving? A- Jim- a grant through Public Works Altermatt lauded the efforts of those who lobbied successfully to have J Dock Fire Lane paving included in this round of funding. Community Development Report: Christy Terry • An `Intent to Award' had been issued to First Student to provide transportation from May 16 through September -16, from the Cruise Ship dock to the Rail Road terminal and around town. • Terry encouraged the board to help insure that Seward get it's share of federal funds and representation by participating in the 2010 census. • The FEMA Firm maps had arrived and outlined flood districts in and around Seward. These maps were out for public comment. Terry said that here was an effort ongoing to make them user friendly. Kenai Peninsula had an Economic Development district survey was out on it's website at www.kpedd.org. • Street views of Seward were available on the Google program. .8 City of Seward, Alaska April 7, 2010 Volume, Page Port and Commerce Advisory Board Minutes • The Library Museum Project was at 35% of completion pending funding. • Terry suggested a joint Planning and Zoning work session with PACAB on the topic of South Harbor uplands development and the Mayor agreed. Planning and Zoning would like to have this work session the second Tuesday in May, May 11, 2010 at 6:30. There were no Citizens Comments Approval of agenda and consent agenda; The Agenda was approved, and; The minutes of the March 17, 2010 meeting were removed from the consent agenda. All the above via unanimous consent. Agenda Item 7- INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS A. Board Member Altermatt gave a report on her trip to the World Trace Center Forum Luncheon in January 2010. Altermatt's view was that this remained an important forum for Seward entities and possible economic growth. She encouraged future PACAB involvement. B. Board reviewed the monthly PACAB budget report by administration. Agenda Item 8- OLD BUSINESS- None Agenda Item 9- NEW BUSINESS Item A. Resolution 2010-001, Recommending Council Adoption of the Seward Small Boat Harbor Vessel Maintenance and Repair Policy Motion (Altermatt/Oliver) Resolution 2010-001, Recommending Council Adoption of the Seward Small Boat Harbor Vessel Maintenance and Repair Policy General Discussion of Resolution Motion to Amend (S chaefermeyer/Butts) Amendment Passed Motion Passed Add the words `to a private yard', to read "1. Whenever practical remove vessel from water to a private yard to do maintenance or repairs." Unanimously As Amended Passed Unanimously Agenda Item 9- NEW BUSINESS 61 City of Seward, Alaska April 7, 2010 Volume, Page Port and Commerce Advisory Board Minutes Item B. Discussion of attendance at the Business of Clean Energy Conference, Board Member Buck Volunteered to attend this conference on behalf of PACAB in June 2010 in Anchorage. Motion (Schaefermeyer/Altermatt) PACAB send Rob Buck to the Business of Clean Energy Conference Discussion Motion Passed Unanimous Consent Agenda Item 9- NEW BUSINESS Item C. Discussion of renewal of PACABs annual World Trade Center of Alaska membership. Motion (Altermatt/Buck) Approving renewal of PACABs World Trade Center membership General discussion of budget and where payment of this fee should be appropriated Motion Passed Unanimously Agenda Item 9- NEW BUSINESS Item D. Resolution 2010-02 recommending City Council Adoption of the All -Hazard Mitigation Plan for the City of Seward Motion (Schaefermeyer/Buck) Resolution 2010-02 recommending City Council Adoption of the All -Hazard Mitigation Plan for the City of Seward... General Discussion Amendment (Butts/Buck) ...and consider an amendment of the attached PACAB revision. Add an addendum to the All Hazard Mitigation Plan listing PACAB's recommended changes to include: Volcano Ash as a Hazard, Economic Impact as a Hazard, Global warming and increased Coastal Erosion added to the plan, severe storms offer a more probable threat (via floods) not necessarily the greatest magnitude of threat written into plan, Jap Creek /Japanese Creek made consistent throughout Plan. 62 City of Seward, Alaska April 7, 2010 Amendment Motion Passed Port and Commerce Advisory Board Minutes Volume, Page Passed Unanimously Unanimously as Amended Agenda Item 9- NEW BUSINESS Item E. Minutes from 3-17-10 meeting Motion (Buck/Butts) Approve minutes with corrections Motion Passed Unanimous Consent CITIZEN COMMENTS — Altermatt, mariners' memorial committee has been meeting and project moving forward. Model should be out soon for fundraising and move forward from there. Buck suggested that it might be a good idea to have a spring time carnival or festival, in order to encourage economic activity year round. Dan Oliver stated that he would not be able to attend the April 19th work session... BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS — None ADJOURNMENT The meeting was adjourned at 1:59 Suzanne Towsley Executive Liaison (City Seal) Theresa Butts Vice/Acting Chair 63