Memorandum 18-121 Alaska Scrap & Recycling LLC Short Term Lease

Memorandum 18-121

TO:                        MAYOR CASTNER AND HOMER CITY COUNCIL

FROM:                 PORT AND HARBOR ADVISORY COMMISSION

THRU:                  KATIE KOESTER, CITY MANAGER

DATE:                   OCTOBER 17, 2018

SUBJECT:          ALASKA SCRAP & RECYCLING, LLC LEASE APPLICATION

The Port and Harbor Advisory Commission held a Special Meeting on October 15, 2018 to consider a short-term lease application for Alaska Scrap and Recycling, LLC.

City staff reported to the commission on the positive history the Port and Harbor has had with Alaska Scrap.  In the past they have had several short-term lease contracts with the City and contractual obligations in all cases were satisfactorily met.  Staff further noted that this lease creates additional income, while still allowing the harbor flexibility and ability to utilize the remaining majority of the secured storage area for other needs.

The excerpt from the special meeting minutes:

NEW BUSINESS

A.    Alaska Scrap Short-term Lease Application

Chair Zimmerman opened the floor for discussion on the Alaska Scrap and Recycling application for a new, five year lease.  He then deferred to Port Director/Harbormaster Hawkins to offer insight on the proposed lease.  Mr. Hawkins provided background information on the Alaska Scrap & Recycling, including:

Port and Harbor’s familiar, good-working history with Alaska Scrap and how they’ve benefitted the City in the past;
How the business has expanded;
Their attempts with shipping out of other ports, and concluding that shipping out of Homer works better logistically.

Mr. Hawkins reviewed the notable terms of the lease and specified that the business will be paying standard wharfage and dockage fees.  Questions and discussions ensued on the lease details, specifically the rates/pricing and the term/renewal policy.  City staff provided an overview on how the old lease policies worked for short-term leases versus how they work now.

ZEISET/ULMER MOVED TO RECOMMEND TO CITY COUNCIL TO APPROVE A NEW 5-YEAR LEASE FOR ALASKA SCRAP & RECYCLING ON A PORTION OF LOT 12, HOMER SPIT SUBDIVISION NO. 5, AND TO AUTHORIZE THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

There was brief discussion on whether a roll-call vote was necessary; Deputy City Clerk Tussey offered clarification on voting options.

VOTE. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Recommendation:

Approve a new 5-year lease for Alaska Scrap and Recycling on a portion of Lot 12, Homer Spit Subdivision No. 5, and to authorize the City Manager to execute the appropriate documents.