LEASE
COMMITTEE UNAPPROVED
SPECIAL
MEETING MINUTES
MAY
18, 2009
Session
09-04 a Special Meeting of the Lease Committee was called to order on May 18,
2009 at 4:40 pm by Chair Shelly Erickson at the Homer City Hall Cowles Council
Chambers located at 491 E. Pioneer Avenue, Homer,
PRESENT:
SHELLY ERICKSON, ECONOMIC
DEVELOPMENT ADVISORY COMMISSION
PHILIP ALDERFER, PUBLIC
AT LARGE
BRYAN HAWKINS,
RICK ABBOUD,
REGINA HARVILLE, FINANCE
DIRECTOR
ABSENT: JOHN VELSKO,
STAFF:
DEPUTY
Approval of the Agenda
The agenda was approved by consensus of the Committee.
Public Comments Regarding Items on the Agenda
There were no further
comments.
Reconsideration
There were no items for reconsideration.
Approval of the Minutes
There were no
minutes to approve.
VISITORS
None.
STAFF Report/COUNCIL/Committee Reports
None.
Public Hearing
None.
Pending Business
A. Lease
Policy - Review of Recommended Changes from Economic
Development Advisory
Commission and the Port and Harbor Advisory
Commission and the
Lease Committee
a.
Homer City Code Chapter 18.08
b.
City Policy and Procedures
c.
Master City Ground Lease Document
d.
Letter from Wells Fargo Bank, Dated
May 6, 2009 Re: City Lease Policy and
Sample Lease
Chair Erickson requested this information to be included on the agenda so
the Committee can review what work has been done by the Economic Development
Commission (EDC) and the Port and Harbor Commission (PH). She proceeded to give
a brief summary noting that items in red were proposed deletions, green were
proposed additions, and purple indicated items not completed during the review.
She informed the Committee that there is a joint worksession planned with PH
and the EDC scheduled for June 1, 2009 at 6:00 p.m. She invited the
Committeemembers to attend.
Mr. Alderfer requested clarification on what will happen after the joint
worksession. He wanted to know who gets it last before recommendations to Council.
He recommended a few of the proposed deletions should stay, maybe in another
form. He added that he was unable to attend the worksession. Chair Erickson
requested Mr. Alderfer submit his questions and comments in writing for the
worksession.
City Manager Wrede declared he would have a number of comments before
this is submitted to Council. He will weigh in after review is completed by the
EDC and PH. He reiterated that the focus of this committee should not be on
re-writing the boiler lease or the code. They should point out areas that there
are problems and why and leave it to the City Attorney and Administration to
work out.
Chair Erickson responded that it was not the intention of the EDC to add
more work to City employees. It is the intention to perform the footwork for
the City and then submit to the attorney for comment. She stated that Kevin
Hogan would be the presiding chair for the worksession.
A brief discussion was held regarding the direction taken by the EDC and
the PH during the upcoming worksession and if guidance from administration would
be appropriate during that worksession. The final draft documents from the EDC
and PH will be submitted to the Lease Committee.
Mr. Alderfer recommended that Chair Erickson express to the EDC and the PH
working group that from the city’s position they are looking for a broad review,
not a re-write. He further stated that he would only be comfortable making
recommendation to Council after review by the City Attorney and the City
Manager.
Chair Erickson expressed that the intention of the EDC is to clear up
some areas to make it more clear, concise, and user friendly. The main goal is
to appear easier to do business with the City.
There was no further discussion.
NEW BusinesS
A. Lease
Proposals Received for Request for Proposal due May 8, 2009
a. Request for Proposal Issued
b. RFP Log
b. Proposal from Seldovia Village Tribe
ALDERFER/HAWKINS - MOVED TO DISCUSS.
There was no discussion.
VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Committeemembers reviewed the proposal
response from Seldovia Village Tribe (SVT) for Lot 21.
Mr. Hawkins noted they did not include
anything for the passenger access, and did not include overslope development.
There was concern regarding the proposed 6-foot by 20-foot shelter.
Mr. Alderfer stated to the Committee that his
company has been working with SVT for a number of years. They do not have a
contract on this particular project but on another project, that is part of
this project. He does not feel he has a conflict of interest.
ABBOUD/HARVILLE – MOVED THAT MR. ALDERFER
HAS A CONFLICT OF INTEREST.
A brief discussion ensued regarding the
possible conflict of interest. Mr. Alderfer explained that the relationship
currently established between his company and SVT is indirectly related to the
project. There was further discussion on the potential gain from future
projects related to this current project.
VOTE. YES. ABBOUD, ERICKSON, HARVILLE,
HAWKINS.
Motion carried.
Mr. Alderfer left the table.
Discussion continued on the aspects of the
proposal submitted by SVT.
Mr. Abboud commented that a motion might be
needed at this time requesting additional information. City Manager Wrede noted
that there are guidelines established to rate a proposal that has been
received.
Chair Erickson requested guidance on the
process for scoring proposals since this was her first time involved in the RFP
process. City Manager Wrede cited possible questions to ask. He added some
historical information regarding the ferry project over the years and how it
has evolved.
Mrs. Harville commented that this was a
great idea and would support recommending it after management addressed the
ramp details, moorage, and the dollar amount for the square footage. She felt
that it was a great economic opportunity for the City and continue moving
forward on it.
Mr. Abboud concurred.
Chair Erickson had some concerns regarding
the shelter. She liked the idea overall. She did not know if the price per
square foot was fair, even if the City will own it in the end. She did not feel
the passenger shelter was adequate.
City Manager Wrede noted for the committee
members that he will have to look into a possible liability issues regarding
ownership and public use or access.
Mr. Hawkins observed that this proposal was
a placeholder, and was not as thorough as it should be. He noted that they
would be receiving a grant to assist funding construction.
It was determined additional information was
needed on the following before recommendation could be given:
HARVILLE/ABBOUD - MOVED TO REQUEST THAT
STAFF GATHER FURTHER INFORMATION FROM PROPOSER REGARDING CONCERNS ABOUT ramp design, CONSTRUCTION, location AND
PLACEMENT ON LOT; PROPOSED MOORAGE FEES; PROPOSED LAND LEASE FEES; PROPOSED
PASSENGER SHELTER; POSSIBLE LIABILITY ISSUES; APPLICATION OF OVERSLOPE
DEVELOPMENT AND JOB CREATION.
There was no further discussion.
VOTE. YES. NON-OBJECTION. UNANIMOUS COSNENT.
Motion carried.
Mr. Alderfer returned to the table.
B. Lease
Expiration Calendar
Mr. Hawkins explained this will be included
in every packet to make the members aware of what leases are coming up for
renewal. It will be used as a tool to monitor the leases.
There was a brief discussion on the short-term
leases for Ocean Beauty and Snug Harbor. They did not respond to the RFP. The
City is outside of the policy by allowing them to go month to month. There is
no recommendation from PH. It is the best use of the property and both
companies provide valuable services to the industries there. The City has no issues
with them.
Mr. Alderfer inquired if an atypical lease
could be approved. He would like to have the support and recommendation from
Port and Harbor Advisory Commission regarding issuing a formal month-to-month
lease. He would like to know their concerns over non-conventional leases.
City Manager Wrede explained what is being
done to comply with the Lease Policies.
Discussions were held regarding setting up to
a 3-year lease for this property. Mr. Abboud addressed the questions about
possible building code issues.
ALDERFER/HARVILLE - MOVED TO REQUEST
RECOMMENDATION AND SUPPORT FROM THE PORT AND HARBOR ADVISORY COMMISSION
REGARDING APPROVAL OF ATYPICAL LEASES FOR LOT 13B TO FIT THE CURRENT ECONOMIC MODEL
FOR THE INDUSTRY.
There was further discussion on the actions
that have been taken to allow Ocean Beauty and Snug Harbor that has not actually
violated the Lease Policy, but may have violated the spirit of the policy. Short-term
value is there having these businesses, but there is additional value in long-term
leases for the City. This approved recommendation would also require change to
the current policy and research into current safety and building code issues.
VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
There was no further discussion.
Informational Materials
A. Memo to City Council and City Manger
dated April 22, 2009 Re:
Approving Lease from
Kachemak Port Services.
The City
Administration is still in negotiation with the Kachemak Port Services (KPS).
There was no further
discussion.
None.
COMMENTS OF THE
None.
Comments from the coUNCILMEMBER (If one is appointed.)
None.
COMMENTS OF THE CHAIR
Chair Erickson questioned whether another special meeting was required
before the regular meeting in July to revisit the SVT proposal. It was
determined that it would take the time remaining before the July meeting to
address all the concerns listed. No special meeting was required.
She appreciated everyone’s work.
comments of the committee
Mr. Alderfer appreciated the efforts of the
EDC and the PH on the Lease Policy language. He apologized for not being able
to attend the worksession on June 1st; he looks forward to seeing
the final work product and hearing the comments from the City Manager and City
Attorney on those changes.
Mr. Hawkins, Mr. Abboud and Mrs. Harville
had no comments.
There being no further business to
come before the Committee, Chair Erickson adjourned the meeting at 5:53
p.m. The next Regular Meeting is scheduled for July 9, 2009 at 3:00 pm in
the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer,
Renee Krause,
Deputy City Clerk I
Approved: