Memorandum 10-07 Home Run Oil Proposal

MEMORANDUM 10-07

TO: LEASE COMMITTEE
FROM: PORT AND HARBOR ADVISORY COMMISSION
DATE: NOVEMBER 10, 2009
SUBJ: HOME RUN OIL PROPOSAL

BACKGROUND:

The Lease Committee requested that the Port and Harbor Advisory Commission review and make a recommendation regarding the lease proposal from Home Run Oil for a fuel tank farm on Lot 13. This was on the Agenda under new Business A at the Port & Harbor Advisory Commission October 29, 2009 meeting.
Below are the excerpts from the unapproved minutes,

NEW BUSINESS
A. Lease Proposal Home Run Oil
a. Letter received as attachment via Email dated October 2, 2009
Port & Harbor Director Hawkins distributed information regarding the land allocation of Lot 13.
Points noted and comments were:
- Lot 13 has never been let out for Request for Proposal (RFP)
- Which area of Lot 13, tank location, and proximity to Deep Water Dock
- Physical review of selected location and additional recommendation from Commissioner Wedin
- Total quantity of fuel with both tank farms located in one spot.
- Ability to monitor spillage adequately for each separate entity.
- Current requirements for monitoring spills.
- Using the recommended lot is not favorable to the proposer due to the irregular shape and setbacks.
- The non-usage of the existing fuel dock.
- The chosen lot must have the land allocation description changed in order to be used for this project.
- The need for an additional supplier and competition on the Spit.
A brief discussion ensued regarding the recommendation requested of the Port & Harbor Advisory Commission from the Lease Committee on the tentative proposal from Home Run Oil.

WEDIN. - MOVED TO RECOMMEND PRESERVING THAT AREA AS A STAGING AREA DUE TO THE VALUE OF THAT LOT BEING IN SUCH CLOSE PROXIMITY TO THE DEEP WATER DOCK IT SHOULD BE RETAINED FOR THAT PURPOSE.

There was no second to the motion. A brief discussion followed on the Deep Water Dock and future expansion phases, but it will be too far in the future to benefit the proposed location.

VELSKO/HARTLEY - MOVED TO RECOMMEND HOME RUN OIL DEVELOP THE PROPOSAL AROUND LOT 8D1, CURRENTLY ALLOCATED FOR TRUCK STAGING AND IF THAT APPEARS TO BE UNFEASIBLE TO RECOMMEND THE WESTERN PORTION OF LOT 13, NOT TO EXCEED FORTY PERCENT OF THE LOT.

Discussion regarding the proposer of the motion to be Commissioner Wedin or Velsko and that it was not a concern could be a friendly amendment. (The original motion died for lack of a second.) Further discourse on the recommended area would also allow for expansion. The convenience of one lot over another; the argument was presented on the difference of one type of staging over another. There were no drawings of the proposed project and the current drawings are very conceptual at this time.
Commissioner Hartley called for the question.

VOTE. YES. VELSKO, ZIMMERMAN, HARTLEY, ULMER, WEDIN.
Motion carried.

RECOMMENDATION:

The Port & Harbor Advisory Commission recommend Homer Run Oil develop their proposal around Lot 8D1, but if that appears unfeasible they recommend the western portion of Lot 13, not to exceed 40% of the Lot.