Loading...
BELLS FLATS TR B-3 OF TR B - Land Disposal (2)KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT CASE FILE CHECKLIST Case .File No. Assigned ?&—c)10 Date Application Received Type of Application lazik6 t..90,,Q61Wuz. Date Site Plan Received Date Fee Paid 4tifg] Receipt Number £1&1 Amount 5J0-01 Person Accepting Appl. NK)M Use Z for Zoning, Variances and Exceptions CUP for Conditional Use Permit LL for Land Leases V for Violations 0 for all Other cases Name of Applicant Mailing Address 1Q75 Phone ...kakuikk Name of Legal Owner. Mailing Address- "g6e" M/40 Phone (0-673(0 Legal description �f Property: Lot(s) (..ri-a.ut- 6-3 Block Subdivision 6ats ads Square Footage or Acreage of Property is 13-3 -- R0.50 6-4 - 4p-3D, P & Z Public Hearing Date-al Q o 17 F.4-0//1/444dez Public Notices Mailed on ilt4)&3L How Many? 21 Applicant Notified of P & Z Action on 049, ieF4eZ) /rAfilel* Date Date Date Date Action Summary Approved Denied Tabled ist Reading //Mk) 2////fr P & z 0/14fkitWIl IMP Assembly Ordinance No. Date 2nd Reading Ordinance Effective Date 6.81 KODIAK ISLAND BOROUGH' March 19, 1982 Mr. Michael Brechan Brechan Enterprises Box 1275 Kodiak, Alaska 99615 Dear Mike, Telephones 486-5736 - 486-5737 — Box 1246 KODIAK, ALASKA 99615 Please be advised that the Planning and Zoning Commission at its March 17, 1982 meeting, accepted the withdrawl of your request to purchase or lease Tracts B-3 and B-4A, Bells Flats Alaska Subdivision, as presented by Mr. Walt Ebell. The Commission also recommended a Material Sales Contract Out- line to the Borough Assembly. A copy of the "outline" is enclosed for your information. The Borough Assembly will be considering the Material Sales Contract at its April 1, 1982 meeting. Should you have any questions on these matters please do not hesitate to contact us at 486-5736. Sincerely, William A. Walton Community Development Department Director CC: Walt Ebell Case File 82-00 K File 793 WAW/jmj r 'i fth Draft 3 -16 -82 OUTLINE FOR A MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and , hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. The Owner, in accordance with Title 18, Real Property, of Borough Code, hereby grants to Contractor the right to enter upon land described as , containing acres, for the purposes of extracting, remanufacturing, and removing gravel resources only. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel and all equipment and machinery required and associated with extraction. 3. Gravel remanlifacturinq. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete and all"equip- ment and machinery required and associated with remanufacturing. 4. Term. The term of this contract is for the twenty (20) year period beginning on , 1982 and ending on , 2002, or until the gravel resource is extracted, whichever occurs first. The Contractor may, if in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or B. Lack of gravel which is economically feasible to extract. Notice of request for early termination shall be accomplished not less than ninety (90) days prior to contract anniversary date and in accordance with the provisions of Section 28 herein. 5. Option to Renew. This contract can be renewed for one five (5) year option. Said option to renew can be exercised by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ and resulted from completitive public bidding on , 1982. 7. Royalty Rate. The. Owner hereby establishes a royalty rate of'$0.50 per cubic yard for materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish, on an annual basis, a minimum unit price for materials to be sold. 8. Volume Determination. In accordance with. Section 18.60.040 of Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The 1 Contractor's measurements will be submitted to the Owner on aw annual basis and not less than thirty (30) days prior to the anniversary date of this con- tract. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B-1, B-2, B-3 and B-4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A hereto. 10. Performance Standards. The following performance standards shall be met by the Contractor: a. Buffer Area. A buffer area two hunderd (200) feet in width shall extend from all platted property lines or the banks of the Russian River to the edge of the gravel extraction area or as shown on Exhibit A hereto. Not more than one hundred (100) feet of the buffer area may be cleared of brush and trees. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2:1) side slopes or flatter shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d.. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty-five (25) feet. e. Brush Removal. All brush shall be removed from not less than two thirds (2/3) of the property described in Section 1 above before any gravel is extracted. No brush shall be placed in the excavated area. f. Trees. No trees, stumps or parts of trees shall be placed in the excavated area. g. Access. Ingress and egress shall be limited to one point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10:00 p.m. daily. 12. Haul Road. For the'purposes of this contract the designated haul road is to and from Tracts B-1, B-2, B-3 and B-4A on Middle Bay Drive to Bells Flats Road to Sargent Creek Road to Chiniak Road. Also included in the designated haul road is that portion of Uyak Drive fronting on Block 3, Tract A, Bells Flats Alaska Subdivision. 13. Speed Limit. Truck speed on the designated haul road shall be limited to twenty-five (25) miles per hour. 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall be grounds for default. 15. License. Contractor shall possess a valid State of Alaska contractors license. Failure to possess said license shall be grounds for default. 16. Insurance Required. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept enforce, for the mutal benefit of Owner and Contractor, comprehensive broad form general public liability insurance against claims and liability for personal injury, death or property, damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death to any one person, at lease $1,000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this lease shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer, waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after ten (10) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt of them, or with certificates evidencing the insurance. Before commencement of the contract, Contractor shall furnish Owner with binders represent- ing all insurance require by this contract. If Contractor fails or refuses to procure or to maintain insurance as required by this contract or fails or refuses to furnish Owner with required proof that the insurance has been procured and is enforce and paid for, Owner may, at Owner's election and without notice, procure and maintain such insurance. The premiums paid by Owner shall be treated as an added fee due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day of'the month following the date on which the premiums were paid. Owner shall give prompt notice of the payment of such premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to, construct or otherwise make new improvements on any part of all of the premises and to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or in part, and to modify or change to contour or grade, or-both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements. Within ninety (90) days after expiration of this contract, Contractor shall at his expense remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Borough and may be sold at auction, leased as part of the premises, or..otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against all liability and loss of any type arising out of work performed on the premises by Contractor, together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, settling, defending and otherwise protecting against such claims. The Notice requirements of Section 28 herein apply to the Owner. 22. Maintenance. Throughout the term, Contractor shall at his sole cost and expense, maintain the premises and improvments in good condition and repair, and in accordance with all applicable laws, rules, ordinances, orders and regulations of Federal, State, Municipal and other governmental agencies and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free access to the premises at all reasonable times for the purpose of examination or inspecting the'conditions thereof in order to exercise any right or power reserved to Owner under the terms and provisions of this contract. 24. Default. Each of the following events shall be a default by contractor and a breach of this contract: a. Abandonment or surrender of the premises, or failure to pay when due any installment of the annual use fee or any other sum .required by this contract to be paid by the Contractor, or to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor of attachment execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operations on the premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency. If the alleged default is non-payment of annual use fee, royalty rate or other sums to be paid by Contractor under this contract, Contractor shall have ten (10) days after notice is given to cure the default. For any other default, Contractor shall promptly and dilligently, after the notice, commence curing the default and shall have thirty (30) days after notice is given to complete the cure. 25. Owner's Remedies on Default: If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the permises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good ,condition, and Owner may re-enter and take possession of the premises and all remaining'improvements and eject all parties in possession or eject some and not others or eject none. b. If this agreement is referred by Owner to any attorney upon any default by Contractor, Contractor shall pay Owner'the latter's'reasonable attorney fees, regardless of whether or not any suit or action is commenced. ' 26. Non - Waiver. No:.failure on the part of the Owner to enforce any covenant or provisions herein contained, nor any waiver of any right hereunder by the Owner, unless in writing, shall discharge or invalidate such covenants or affect the rights of the Owner to enforce same in the event of any subsequent breach or default. The receipt by Owner of payments as provided herein or any other sum of money or the termination, in any manner, of the term herein stipulated, or giving by the Owner of any notice hereunder to effect such termiation, shall not reinstate, continue, or extend the resultant term herein stipulated, or destroy, or in any manner impair the efficiency of any such notice of termination as may have been given hereunder by the Owner to the Contractor prior to the receipt of any such sum of money or other consideration, unless expressed in writing and signed by the Owner. 27. Construction. The obligations of.the undersigned parties are joint and several, and wherever the context herof so admits or requires,.the singular shall include the plural. The covenants, terms and conditions of this agreement shall extend to and be binding upon and inure to the benefit of the heirs, executors, adminstrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail addressed as follows: Owner Contractor or to such other persons or addresses as Owner or Contractor may from time to time designate in writing. 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare a mutually acceptable substitute provisions for any provision stricken from this contract due to illegality and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provisions shall remain in full force and effect as though the stricken provisions had never appeared in this contract. Each provison of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for. the State of Alaska at Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties-may amend this contract only by written agreement, which shall be attached as an appendix hereto. In Witness Whereof the parties have executed this contract on 1982. OWNER: Kodiak Island Borough By: TENANT: By: STATE OF ALASKA ) SS THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the day of 198 , at Kodiak, Alaska, , whom I know, appeared before me and acknowledged that he executed the fore- going instrument for and on behalf of the KODIAK ISLAND BOROUGH; that he is the of KODIAK ISLAND BOROUGH and is authorized to so execute, and that he knew the contents thereof and acknowledged the same to be his act. IN WITNESSWHEREOF, I hereto set my hand and seal. Notary Public in and for Alaska MY COMMISSION EXPIRES: STATE-OF ALASKA ) SS -THIRD JUDICIAL DISTRICT ) On this day of , 198 , before me, the undersigned Notary Public in and for the State of Alaska, personally appeared , tenant, known to me and to me known to be the person whose name is subscribed to the within instrument and that he/she executed the same for the pur- poses therein contained. IN WITNESS WHEREOF, I hereto set my hand and seal. Notary Public in and for Alaska MY COMMISSION EXPIRES: • KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION MINUTES March 17, 1982, regular meeting Page 6 ,Mr. Walt Ebell Representing Brechan Enterprises. Brechan Enterprises is willing t withdraw their application to lease or purchase Tracts B -3-and B -4A, if the Materi Contract Outline is forwarded on to:the Manager for his consideration and then forwarded to the Assembly. -Mrs. Crowe called a5 minute recess at 10:15 p.m.. The meeting was called back to order at 10:20 p.m. Mr. Ramaglia provisions to maintain haul road, and who is to maintain it? Discussion between the Commission members on who should: maintain the haul road. . Mr. Gudenau let the Borough Assembly decide who is going to pay for the maintenanc of the road. Discussion on amendments to Resolution 82 -009. Mr. Gudenau read Resolution 82 -009 with the amendments. Mr. Gudenau moved to approve Resolution 82 -009 with amendments. Seconded by Mr. .Ball. Motion PASSED by unanimous roll call vote. Mrs. Crowe the next item is the Material Sales Contract. Outline. Lengthy discusstion between the Commission members, Walt Ebell, Jim Cobis, Bruce Maass .and_Gl.en Mathis on changes .to. be made to the_ contract outline. Mr. Hill moved to make the following change to the Material Sales Contract Outline Page 1, Section 1 = delete the word "only" at the end of the sentence and add the words "from this parcel only ". Seconded by Mr.'Ball. Motion PASSED by unanimous . roll call vote. Mr. Ball moved to make the following changes to' the Material Sales Contract Outlin (1). Page 1, Section 4 - in the third line, add the word "useable" between "the" an "gravel resource" so the end of the sentence reads. "until the useable gravel re- source is extracted, whichever occurs first" and (2) Page 4, Section 24 - add subsection e. which reads "Failure to occupy or perform according to the terms of this contract for a twelve (12) month period constitutes a default." Seconded by Mr. Hill. Motion PASSED by unanimous roll call vote. -- Mr. Ramaglia moved to make the following change to the Material Sales Contract: Page 2, Section 11 - change the sentence to read "hours' of operation shall be limited to 6:00 a.m. to 8:00 p.m., Monday through Saturday." Seconded by Mrs. Strickert. Motion PASSED with a 4 -2 vote with Mrs. Crowe and Mr. Ball voting NO and Mr. Hill, Mr. Ramaglia, Mrs. Strickert and Mr. Gudenau voting YES. Mr. Ball moved to make the following change-to the Material Sales Contract: Page 2, Section 12 - add a sentence on the end of the existing sentence which - reads "haul road will remain open and be maintained during the term of the contrac Seconded by Mr. Hill. Motion PASSED with a 5-1 vote, Mrs. Strickert voted NO and - -Mr: Ball, Mrs. Crowe, Mr. Hill, Mr. Ramaglia and Mr. Gudenau voted YES. Mrs. Strickert moved to approve the Material Sales Contract Outline with the .amendments stated and pass it on to the Borough Assembly for their April meeting. Seconded by Mr. Ball. Motion PASSED by unanimous roll.zall vote. 11. CONSIDERATION -OF CASE Z -81 =010. Kodiak Island Housing Authority Site plan review. (Kodiak Island Housing Authority) Mrs. Crowe summarized the three (3) handouts provided by the Community Development Department and the Engineering Department. Mr. Ebell explained that.money was set aside for the Kodiak Island Housing Author- ity's fair share of improvements to Woody Circle. The money will only be set aside for 15 years. Discussion on what happens to the money after the 15 years are up. Mr. Ebell explained the proposed site plan. Mr. Hill moved to approve the site plan for the Kodiak Island Housing Authority's project on Tracts B and h, Kadiak Alaska Subdivision, as all of the conditions. - have been met. Seconded by Mr. Gudenau. Motion PASSED by unanimous roll call vote. KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION MINUTES March 17, 1982, regular meeting Page 5 Discussion on practical access to the lots in question. Mr. Ramaglia the Engineer recommends that more work be done on Lilly Way. Discussion on providing access to lots being subdivided. Mrs. Strickert moved to grant preliminary approval to Tract I, USS 1396, and lots 1 through 5, block 4, lots 8 through 15, block 5 and lot 1 and 2, block 6, Elderberry Heights Subdivision. Seconded by Mr. Hill. Motion PASSED by unanimous roll call vote. Mr. Grothe statedthat he made it clear to Mr. Crowe that either all of this be approved or it be returned with corrections to be made. -Mr. Gudenau can this be reconsidered now? Mr. Walton yes. _Mr. Ball moved to reconsider the preliminary subdivision of the unsubdivided port- ion of USS 1396, creating blocks 4, 5, 6 and 7, Elderberry Heights Subdivision. Seconded by Mr. Hill. Mrs. Crowe reconsider it now? Mr. Ball yes! Motion PASSED with a 4 -2 vote with Mrs. Crowe and Mrs. Strickert voting NO and Mr. Ball, Mr. Hill, Mr. Gudenau and Mr. Ramaglia voting YES. Lenghty discussion between the Commission members and Mr. Grothe on what the lot configurations are going to be. Mr. Walton a portion of State Law states that the Commission can approve or dis- approve the plat submitted or return it to the applicant for modification or correction. More disucssion on lot configuration and changing the lot configuration of Tract I so that the lines are straight. Mr. Hill can we grant preliminary subdivision approval, then Mr. Grothe can retur! this to us with all of the stipulations met. Mr. Hill moved to grant preliminary approval of the unsubdivided portion of USS 1396, creating blocks 4, 5, 6, and 7, Elderberry Heights Subdivision into 32 lots with the following stipulation: that the southeast boundary of Tract I be straighh- ened. Seconded by Mr. Gudenau. Motion PASSED by unanimous roll call vote. Discussion on whether or not a replat needs to be done on these small land trans- fers. 9. PUBLIC HEARING ON CASE S -82 -006. (Preliminary)vacation of lots 4B, 4C and 4D, blo( 2, Bells Flats Alaska Subdivision; and replat to lots 4B -1, 4B -2, 4B -3 and 4B -4, block 2, Bells Flats Alaska Subdivision. (William G. Williams) Mrs. Crowe closed the regular meeting and opened the public hearing, hearing no comments Mrs. Crowe closed the public hearing and reopened the regular meeting. Mr. Gudenau moved to grant a preliminary vacation of lots 4B, 4C, md 40, block 2, Bells Flats Alaska Subdivision and replat to lots 4B -1, 4B -2, 4B -3 and 4B -4, block 2, Bells Flats Alaska Subdivision. Seconded by Mrs. Strickert. Motion FAILED by unanimous roll call vote. REASONS FOR DENIAL: 1. Lot 4B -3 does not meet the average lot width of 120 feet; and 2. None of the new lot lines run radially with the right -of -way for Birch Circle as required by Code Section 16.20.050(B). 10. CONSIDERATION OF CASE 82 -009. A request for sale or lease of Tracts B -3 and B -4A Bells Flats Alaska Subdivision, USS 2539. (Brechan Enterprises) STAFF REPORT: Mr. Walton presented the staff report based on a memorandum prepar by the unneunity Development Department. - KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION RESOLUTION NO. 82-009 A RESOLUTION OF THE PLANNING AND ZONING COMMISSION ON THE REMOVAL OF GRAVEL RESOURCES FROM BOROUGH OWNED LAND. WHEREAS, various groups and interests have been studying methods of removing gravel resources from Borough owned land for several years; and WHEREAS, Chapter 18 of Borough Code provides for Material Sales Contracts as a means of gravel extraction while preserving the Borough's inter- ests in the land involved; and WHEREAS, much recent effort has been expended to create a realistic material sales contract outline which takes into account concerns expressed by citizens, contractors and public officials at numerous public meetings; and WHEREAS, the Planning and Zoning Commission has considered at length the problems involved with gravel extraction activities on Borough owned! land and specifically for the B Tracts in Bells Flats Alaska Subdivision. . � NOW, THEREFORE, BE IT RESOLVED that the Planning and Zoning '� Commission recommends to the Borough Assembly that the preferred method of re- [ ` moving materials from Borough owned land is through the Material Sales Contracts provided by Chapter 18.60 of Borough Code. BE IT FURTHER RESOLVED that said contracts for the B Tracts in ' ! Bells Flats Alaska Subdivision be based on the Material Sales Contract Outline `and be offered through public bidding, with the following conditions: 1. Bid basis is an annual use fee beginning at $5,000 per year per tract with Said Use Fee being in addition to any royalty rate; • �� 2. No more than two tracts can be obtained by his � ' heirs, executors, administrators or assigns, firms, partnerships or corporations; ` 3. A performance bond, contractor's license and liability insurance ` policy are required to be a bidder; and � .. � � ' ' �� 4. Prior improvements to the land involved should be reuugn ied { i � `: ,. and a value N6ced thereon. :.- _ � � ' |' D[lT����t� the ���se�y�si����ll� || ing: | � � 1. Improvements to , oncoming vehicles; and | ,' 2. Designating the royalty rate to be paid to the ' Bells Flats Road Service District for dust control and maintenance of the , designated haul roads. ATTEST: BY: RESOLVED THIS DAY OF , 1982. Planning Secretary KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION Planning Commission Chairman , '� s- KODIAK ISLAND BOROUGH M E M O R A N D U M --Item 10 DATE: March 16, 1982 TO: Planning and Zoning Commission //''//Y�— FROM: Community Development Department AWvv14 SUBJ: Additional information for March 17, 1982 meeting RE: Case 82-009. Request for lease or sale of Tracts B -3 and B -4A, Bells Flats Alaska Subdivision. (Brechan Enterprises) Attached please find a revised draft of a material sales contract outline for the B Tracts and a resolution which can be used to for- ward the contract and attendant concerns to the Borough Manager and .Assembly. If the Commission recommends a material sales contract as the pre- ferred method for removal of gravel from the B- Tracts, the following scenario is anticipated: 1. Commission resolution and draft contract forwarded to Borough Manager by staff; 2. Assembly resolution and draft contract placed before Assembly by the Manager for April 1st meeting; 3. Assembly authorization to Manager to procedd with contract finalization and preparation of bid documents; 4. Bidding for material sales contracts; and 5. Awarding of contracts to successful bidders. Also attached for your information is a recent letter from Dale Tubbs on royalty rates. Fifth Draft 3 -16 -82 OUTLINE FOR A MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and , hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. The Owner, in accordance with Title 18, Real Property, of Borough Code, hereby grants to Contractor the right to enter upon land described as containing acres, for the purposes of extracting, remanufacturing, and removing gravel resources only. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel and all equipment and machinery required and associated with extraction. 3. Gravel remanufacturinq. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete and all equip- ment and machinery required and associated with remanufacturing. 4. Term. The term of this contract is for the twenty (20) year period beginning on , 1982 and ending on , 2002, or until the gravel resource is extracted, whichever occurs first. The Contractor may, if in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or B. Lack of gravel which is economically feasible to extract. Notice of request for early termination shall be accomplished not less than ninety (90) days prior to contract anniversary date and in accordance with the provisions of Section 28 herein. 5. Option to Renew. This contract can be renewed for one five (5) year option. Said option to renew can be exercised by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ and resulted from completitive public bidding on , 1982. 7. Royalty Rate. The Owner hereby establishes a royalty rate of $0.50 per cubic yard for:;materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish, on an annual basis, a minimum unit price for materials to be sold. 8. Volume Determination. In accordance with Section 18.60.040 of Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The 1 ) Contractors measurements will be submitted to the Owner on aniannual basis and not less than thirty (30) days prior to the anniversary date of this con- tract. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B-1, B-2, B-3 and B-4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A hereto. 10. Performance Standards. The following performance standards shall be met by the Contractor: a. Buffer Area. A buffer area two hunderd (200) feet in width shall extend from all platted property lines or the banks of the Russian River to the edge of the gravel extraction area or as shown on Exhibit A hereto. Not more than one hundred (100) feet of the buffer area may be cleared of brush and trees. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2:1) side slopes or flatter shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty-five (25) feet. e. Brush Removal. All brush shall be removed from not less than two thirds (2/3) of the property described in Section 1 above before any gravel is extracted. No brush shall be placed in the excavated area. f. Trees. No trees, stumps or parts of trees shall be placed in the excavated area. g. Access. Ingress and egress shall be limited to one-point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10:00 p.m. daily. 12. Haul Road. For the purposes of this contract the designated haul road is to and from Tracts B-1, B-2, B-3 and B-4A on Middle Bay Drive to Bells Flats Road to Sargent Creek Road to Chiniak Road. Also included in the designated haul road is that portion of Uyak Drive fronting on Block 3, Tract A, Bells Flats Alaska Subdivision. 13. Speed Limit. Truck speed on the designated haul road shall be limited to twenty-five (25) miles per hour. 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall be grounds for default. 15. License. Contractor shall possess a valid State of Alaska contractors license. 'Failure to possess said license shall be grounds for default. 16. Insurance Required. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept ienforce, for the mutal benefit of Owner and Contractor, comprehensive broad form general public liability insurance against claims and liability for personal injury, death or property damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death to any one person, at lease $1000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this lease shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer., waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after ten (10) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt of them, or with certificates evidencing the insurance. Before commencement of the contract, Contractor shall furnish Owner with binders represent- ing all insurance require by this contract. If Contractor fails or refuses to procure or to maintain insurance as required by this contract or fails or refuses to furnish Owner with required proof that the insurance has been procured and is `enforce and paid for, Owner may, at Owner's election and without notice, procure and maintain such insurance. The premiums paid by. Owner shall be treated as an added fee due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day writhe month following the date on which the premiums were paid. Owner shall give prompt notice of the payment of such premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to, construct or otherwise make new improvements on any part of all of the premises and to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or in part, and to modify or change to contour or grade, or both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements. Within ninety (90) days after expiration of this contract, Contractor shall at his expense remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Borough and may be sold at auction, leased as part of the premises, or otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against all liability and loss of any type arising out of work performed on the premises by Contractor, together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, . settling, defending and otherwise protecting against such 3 (I_) claims. T4 Notice requirements of Section 28 herein apply to the Owner. 22. Maintenance. Throughout the term, Contractor shall at his sole cost and expense, maintain the premises and improvments in good condition and repair, and in accordance with all applicable laws, rules, ordinances, orders and regulations of Federal, State, Municipal and other governmental agencies and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free_access to the premises at all reasonable times for the purpose of examination or inspecting the conditions thereof in order to exercise any right or power reserved to Owner under the terms and provisions of this contract. 24. Default. Each Of the following events shall be a default by contractor and a breach of this contract: a. Abandonment or surrender of the premises, or failure to pay when due any installment of the annual use fee or any other sum required by this contract to be paid by the Contractor, or to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor of attachment, execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operations on the premises for any reason, including but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution, or arrangement on account of or to prevent bankruptcy or insolvency. If the alleged default is non-payment of annual use fee, royalty rate or other sums to be paid by Contractor under this contract, Contractor shall have ten (10) days after notice is given to cure the default. For any other default, Contractor shall promptly and dilligently, after the notice, commence curing the default and shall have thirty (30) days after notice is given to complete the cure. 25. Owner's Remedies on Default. If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the permises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good condition, and Owner may re-enter and take possession of the premises and all remaining improvements and eject all parties in possession or eject some and not others or eject none. b. If this agreement is referred by Owner to any attorney upon any default by Contractor, Contractor shall pay Owner the latter's reasonable attorney fees, regardless of whether or not any suit or action is commenced. 26. Non - Waiver.— No:.fai'1ure on the part of the Owner to enforce any covenant P Y or provisions herein contained, nor any waiver of any right hereunder by the Owner, unless in writing, shall discharge or invalidate such covenants or affect the rights of the Owner to enforce same in the event of any subsequent breach or default. The receipt by Owner of payments as provided herein, or any other sum of money or the termination, in any manner, of the term herein stipulated, or giving by the Owner of any notice hereunder to effect such termiation, shall not reinstate, continue, or extend the resultant term herein stipulated, or destroy, or in any manner impair the efficiency of any such notice of termination as may have been given hereunder by the Owner to the Contractor prior to the receipt of any such sum of money or other consideration, unless expressed in writing and signed by the Owner. 27. Construction. The obligations ofithe undersigned parties are joint and several, and wherever the context herof so admits or requires, the singular shall include the plural. The covenants., terms and conditions of this agreement shall extend to and be binding upon and inure to the benefit of the heirs, executors, adminstrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail addressed as follows: Owner Contractor or to such other persons or addresses as Owner or Contractor may from time to time designate in writing. 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare.a mutually acceptable substitute provisions for any provision stricken from this contract due...to illegality and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provisions shall remain in,full force and effect as though the stricken provisions had never appeared in this contract. Each provison of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for the State of Alaska at Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. In Witness Whereof the parties have executed this contract on 1982. OWNER: Kodiak Island Borough By: TENANT: By: STATE OF ALASKA SS THIRD JUDICIAL DISTRICT ) THIS IS-TO CERTIFY that on the day of 198 , at Kodiak, Alaska, , whom I know, appeared before me -and acknowledged that he executed the fore- going instrument for and on behalf of the KODIAK ISLAND BOROUGH; that he is the of KODIAK ISLAND BOROUGH and is authorized to so execute, and that he knew the contents thereof and acknowledged the same to be his act. IN WITNESS,WHEREOF, I hereto set my hand and seal. Notary Public in and for Alaska MY COMMISSION EXPIRES: STATE OF ALASKA SS THIRD JUDICIAL DISTRICT ) On this day of , 198 , before me, the undersigned Notary Public in and for the State of Alaska, personally appeared , tenant, known to me and to me known to be the person whose name is subscribed to the within instrument and that he /she executed the same for the pur- poses therein contained. IN WITNESS WHEREOF, I hereto set my hand and seal. Notary Public in and for Alaska MY COMMISSION EXPIRES: KODIAK ISLAND BOROUGH MEMORANDUM DATE: March 10, 1982 TO: Planning and Zoning Commission FROM: Community Development Department J&;..ev/fa‘nere. SUBJ: Case 82-009. Request for lease or sale of Tracts B-3 and B-4A, Bells Flats Alaska Subdivision. (Brechan Enterprises) HISTORY This item was tabled at the Commission's January 20th and February 17th, 1982 meetings. Information items in your binders from these twe previous meetings are as follows: 1. February 18, 1982 staff report; 2. February 8, 1982 letter from John Felton's Attorney; 3. January 20, 1982 staff report addendum; 4. January 13, 1982 staff report; 5. December 23, 1981 letter from Dale Tubbs; 6. November 16, 1981 letter from Borough Manager to Walt Ebell; 7. August 3, 1981 staff report; 8. July 27, 1981 memo to Borough Manager on leases; 9. June 9, 1981 memo from Marcia Enos to Director; 10. January 13, 1981 memo to Commission from Borough Engineer; 11. October 17, 1978 letter from Dale Tubbs; and 12. Other background items. OPTIONS The options available to the Commission are to recommend leasing of Tracts B-3 and B-4A; to recommend sale of the parcels; or to reject lease or sale and recommend another course of action. LEASES The parcels can be leased according to Chapter 18 of Borough Code. The two tracts in question are in fact presently being leased by Brechan Enterprises on a month-to-month basis pending the outcome of the case before you. Problems involved with leases include; a five (5) year time limit; a public offering if a value of more than $500 is involved; and the Borough Code prohibits the removal of materials by a leaseholder. Again, land is leased and materials are sold. Case 82-009 Page 2 SALE u • The parcels involved can be sold. A public offering is required in addition to numerous other code stipulations. Sale appears to be the least desireable option at this time if assuring competition is a valid concern and Borough control is desired to ensure a specific pattern of development. ANOTHER ALTERNATIVE The most viable alternative for the production of gravel on Tracts B-3 and B-4A is through a material sales contract. Such sales are authorized by Chapter 18.60 of Borough Code and have been since 1978. The procedure involved is simple. The Commission needs to recommend to the Assembly that a material sales contract be used to remove the gravel resource and accompany that suggestion with a plan for the area in question. PLAN With the adoption of the Womens Bay Community Plan by the Assembly on March 4th, a plan for development of all of the B Tracts is in place. That plan basically provides for the removal of gravel from Industrial Zoned land and the creation of a lake within a 200 foot •buffer area consisting of a greenbelt and a future rural residential area. CONTRACT A sample contract is attached to this staff report for the Commission's information. It is the result of numerous "gravel committee" meet- ings which considered information from the Womens Bay Community, The Bureau of Land Management, the Alaska Department of Transportation, and the Borough. The contract is by no means a final document but:At is a starting point. According to Section 18.60.010 of Borough Code "All materials to which the Borough holds title may be sold pursuant to •contract approved by the Assembly. The Manager shall recommend to the Assembly a form of contract, including limitations, conditions and terms of sale." RECOMMENDATION Staff recommends that the request to lease or purchase Tracts B-3 and B-4A, Bells Flats Alaska Subdivision, be denied. Staff further recommends that the gravel resources on Tracts B-1, B-2, B-3 and B-4A be removed under material sales contracts, as authorized by Chapter 18.60 of Borough Code, and in accordance with the adopted Womens Bay Community Plan. KODIAK ISLAND BOROUGH.. February 19, 1982 Mr. Michael Brechan Brechan Enterprises Box 1275 Kodiak, Alaska 99615 Dear Mike, Telephones 486-5736 - 486-5737 — Box 1246 KODIAK, ALASKA 99615 Please be advised that the Borough Planning and Zoning Commission, at its February_17, 1982 meeting, tabled your request to lease or purchase Tracts B-3 and B-4A, Bells Flats Alaska Subdivision for one more month. Should you have any questions do not hesitate to call. 'Sincerely, William A. Walton Community Development Department. Director CC: Walt Ebell Dale Tubbs K-793. Case 82-009 WAW/jmj 1. KODIAK ISLAND BOROUGH PLANNIN; `_! ZONING COMMISSION MINUTES February 17, 1982, regular me: 1 1j10'Page 6 Mrs. Crowe as mentioned before, 1 think staff needs to define greenbelt. Mr. Ball in regard to the 300 foot greenbelt I would like you to make a comment. Mr. Walton traditionally a greenbelt stops at the property line. Mr. Ball could we say 300 feet or to the present property line, which ever is'great- er. Mr. Ramaglia who controls the land labeled State of Alaska? Mr. Walton it has been tentatively approved to the Borough, but the State can go in and take out gravel when they want to. Discussion between Mr. Ramaglia and Mr. Walton on if tentative approval will limit the State in using the land. Mrs. Crowe delete anything that deals with Map #2 at this time, need a new boundary description, 5% park and 3% municipal I would like to see it listed as a general guideline to be considered when a subdivision takes place. Under future land use - it says the B Tracts are recommended for gravel extraction, the creation of a lake and the end land use to be rural residential. Does it need to be stated that we are assuming that means that at such time all practical extraction of gravel has taken place as determined by the Borough? Mr. Walton yes, it should say that. Mr. Ramaglia 5% land for parks in a subdivision does this mean all subdivisions or just the larger ones. Mrs. Crowe maybe we can delete this about parks and we can discuss it when we look at Map #2. Mr. Hill we should add that all gravel will be removed from the B Tracts before any other gravel extraction tracts are to be opened. Discussion on this statement between the Commission members. Mr. Maass could you repeat your statement Mrs. Crowe on the time frame on the gravel lease. Mrs. Crowe 1 state until all practical gravel extraction was completed no other pits are to be opened. Mr. Maass could you withdraw that statement and change it to read, "until the covenants of the gravel lease deed are met." Mrs. Crowe okay. Bill Williams greenbelt problem. We do not want to infringe on a persons property. The four (4) tracts or lots zoned industrial should be designated now not later. How is the plan to be submitted? Discussion between the Commission and Mr. Williams on how the plan is to be submitted to the Assembly. Mrs. Crowe closed the public hearing and reopened the regular meeting. Discussion on the changes to be made to the text of the plan and the map. Mr. Hill moved to approve the 1•Iomens Bay Community Plan, map #1 and the change of lots 1 and 4, block 5, Tract A, Bells Flats Alaska Subdivision to a park and lots 2 and 3, block 5, Tract A, Bells Flats Alaska Subdivision leave industrial and the text changes as follows: 1) clarify "greenbelt ", 2) change one (1) acre to 40,000 square feet in the chapter on Community Philosophy and 3 add wording stating that all gravel will be removed from the B Tracts before other material sites are opened on Borough owned land and this plan be incorporated into the overall Borough Comprehensive Plan. Seconded by Mr. Gudenau. Motion PASSED by unanimous roll call vote. 8. CONSIDERATION OF CASE 82 -009. A request for sale or lease of Tracts 8 -3 and B -4A, Bells Flats Alaska Subdivision, USS 2539. (Brechan Enterprises) KODIAK ISLAND BOROUGH PLANNIN_ -- ` ZONING COMMISSION MINUTES February 17, 1982, regular me ,,,Page 7 Mrs. Crowe we put this on our agenda in hopes to getting all of the problems ironed out. A committee was appointed which consists of Mrs. Crowe, Mr. Ball, Mr. Beaty and Mr. Arndt to address specific questions. Would like to see us prove to let Brechan lease the land on a month to month basis and hopefully we can bring this up in March. Mr. Richardson is this monopoly going to continue? Mrs. Crowe we will try to reach an agreement by March. Discussion between the Commission members on what the Assembly wants to see on the gravel leases. Mr. Ball moved to set this item aside until March 17, 1982 with the following stipulation, that the committee will have a recommendation for the Assembly. Seconded by Mr. Hill. Motion PASSED by unanimous voice vote. Mrs. Crowe Mr. Walton will you call the committee members for a lunch meeting on February 22, 1982. I would also like to have a joint work session with the Borough Assembly on this topic possibly March 11th only item on the agenda. 9. PUBLIC HEARING ON CASE 82 -015. Public hearing on a controlled livestock grazing district. (Community Development Department) STAFF REPORT: Mr. Walton presented the staff report based on a memorandum prepared by the Community Development Department which recommended approval. Mr. Ball has anyone checked into the grazing leases in this area? Mr. Walton Mr. Fields is the primary person involved with some Bells Flats individuals also involved. Discussion between Commission members and staff as to why this has come up. Mr. Gudenau what action can you take if a cow comes on your lot? Mr. Walton you can not shoot the animal, but you can impound the animal and the owner must bail them out and if the owner does not bail the animal out it can go up for public auction. Mrs. Crowe closed the regular meeting and opened the public hearing. Elmer Sorenson Executive Officer for the Coast Guard and representing Captain Schauffer. Read a letter from Captain Schauffer. We are for the district. Mrs. Strickert how big are the Buskin and Holiday Beach areas? Mr. Sorenson I do not have that information with me. Discussion between the Commission members and Mr. Sorenson on the Holiday Beach involvement. Cathy Bishop Principal at Peterson Elementary, concerned about cattle on the play- ground, would like to see something done to protect the children. Pat Lods would like to see something done about the cattle as they really like to eat gardens. Mary Mathis Read a letter from Womens Bay Community Council, stating there was a petition attached that you should have as a hand out. The Community is in favor of the district. Read a letter from herself and is in favor of the district. Bruce Maass explained that he has put up a fence to keep the cattle out but it did not work. Jim Wright Operations Officer at the Airstation, support the district would like to help protect those who fly. John Witteveen Assistant Superindent of Schools, in support of the district and safety of the children. Lou Garrett Acting Airport Manager, support the district. m., K/OLAK ISLAND BOROUGH MEMORANDUM TO: Planning and Zoning Commission FROM: Community Development Department 4.e1(4447194') SUBJ: Information for February 17. 1982 meeting Case 82-009. Request for the lease or sale of Tracts B-3 and B-4A, Bells Flats Alaska Subdivisipn- (Brechan Enterprises). HISTORY Brechan Enterprises entered into borrow site leases for Tracts B-3 and B-4 in February of 1977. The leases provided for four(4) one year renewals with the last renewal period expiring on February 9,1982. At the Borough Assembly meeting on November 9, 1981 the leases were extended on a month to month basis pending re- solution of the gravel extraction issue. The Commission tabled Case 82-009, at its January 20, 1982 meet- ing, for a period of one month, to allow time for Brechan Enter- prises to complete its development plan submittal and allow time for the completion of the Womens Bay Community Plan. B TRACTS PLAN The so called "B Tracts Plan" is in reality an integral part of the Womens Bay Community Plan and has been since October 1981. The majority of the participants involved with the gravel extrac- tion problem now agree with the following: 1. Remove the gravel resource from Tracts B-1, B-2, B-3, and B-4A; 2. Create a lake through the gravel extraction process; and 3. The "end use" of the property will be Rural Residential. The points of disagreement which remain are as follows: 1. Whether the land should be sold, leased or retained by the Borough; 2. Whether the land should be rezoned; and 3. The form of the future residential area. Memorandum page 2 Case 82-009 CONFLICT #1 - Whether the land should be sold, leased, or retained by the Borough. The gravel resource on the B Tracts is reportedly the item of everyone's desire. The Borough can accomplish extraction • of the gravel under the provisions of Chapter 18.60 of Borough Code - Material Sales. There is no need to lease the land because the Material sale contract provides for occupancy of the land to remove the gravel, a royalty rate, a payment schedule, ap- proval of a mining plan, etc. Further, if the land remains in the public's hands the future use of the property for residential purposes can be assured. A government is much easier to in- fluence than a private corporation. CONFLICT #2 - Whether the land should be rezoned. The land is presently zoned I-Industial and gravel extraction is a permitted use. By indicating on the Womens Bay Community Plan that the future use of the B Tracts is residential, the first step and a requirement for future rezoning is completed. A proposal to rezone the parcels. from Industrial to Conservation did not meet with favor at the Assembly last summer. Neither did a proposal to rezone to Rural Residential with an exception for gravel removal. CONFLICT #3 - The form of the future residential area. The original proposal for the B Tracts included a lake, residential lots surrounding same, and a road on the perimeter of the property. There is concern that residential lots are not practical on the Russian River side of the property. The concern is over possible water pollution from sewage disposl systems in an area with a man made lake on one side, a River on the other, and a high water table. Little enthusiasm has been generated about the prospect of a road ringing the area. Further, at least one gravel contractor has expressed doubts about sufficient land being available on the River side of the property to provide for both gravel extraction and future housing. The Womens Bay Community Plan proposes extraction of gravel, the creation of a lake, and future residential land use on the Middle Bay Drive side of the Tracts. GRAVEL REMOVAL CONTRACT A gravel removal contract can be tailored to serve the needs of a contractor while preserving Borough land and protecting the needs of the residents of Womens Bay. The following items have been proposed by the Womens Bay Community Council for consideration by the Borough: Memorandum page 3 case 82-L,004 1. Extract gravel as fast as possible; 2. Reserve gravel source for the use of the Service Districts with the Districts to pay the same royalty rate as other contrac- tors; 3. Establish an alternate truck route, or road maintenance compensation rate, or paving and a speed limit; 4. Include State Fish and Game review of area in Considerations; 5. Establish a time frame for removal, depth of extraction, and areas of extraction; 6. Require development plans, reviewed annually, which includes: a.. Buffer area b. Green belt c. Stockpiling of overburden in buffer area d. No removal of trees in buffer area e. Hours of operation, 7 to 7?, no Sundays f. Register all equipment left more than 24 hours on the site with the Borough g. Gravel extraction equipment only on the site. 7. Yearly performance audits by the Borough. HOW TO DO IT? The interests of the Borough, the Womens Bay Community, and the contractors can best be served by the Borough retaining owner- ship of the B Tracts and permitting gravel extraction via con- tract and an established royalty rate. This course of action has been recommended several times in the past by Dale Tubbs and the staff. To quote from Mr. Tubbs latest letter the Borough has reached"a fish or cut bait situation". RECOMMENDATION Staff recommends that Tracts B-3 and B-4A, Bells Fiats Alaska Subdivision, not be declared surplus to Borough needs and their ownership he retained by the Borough. Staff further recommends that gravel removal contracts be offered for Tracts B-1, B-2, B-3, and B-4A on a competitive bid basis for the royalty rate to be paid to the Borough. Staff also recommends that development plans be required in accordance with performance standards contained in the contract and the plans be reviewed and approved by the Planning Commission. Memorandum page 4 case 82-009 The process recommended would work like this: 1. Contract for gravel removal prepared by staff, reviewed by Commission, approved by Assembly; 2. Bid competition for parcels based on royalty rates; 3. Successful bidders submit required development plans: 4. Development plans reviewed by Commission, Approved by Assembly: and 5. Begin gravel extraction. The time involved from step 1 to step 5 would be approximately three months or less. ADLO:2234 -1 April '66 BUREAU OF LAND MANAGKMENT TERMS & CONDITIONS FOR RIGHTS -OF -WAY & MATERIAL SITES 1. The grantee or permittee shall comply with State and Federal laws appli- cable to the project for which the right -of -way or material site is approved, and to the lands which are included in the right -of -way or material'site and lawful existing regulations thereunder. 2. The grantee or permittee shall protect all public land survey monuments, w'._ness corners, reference monuments and bearing trees against destruction,. c)1 tera *_ion, or damage during his operations. If any. monuments or corners are destroyed, obliterated, or damaged by his operations, he shall, at his ex ?ense, hire a registered surveyor pursuant to applicable State law and Bureau of Land Management procedures to. -re- establish the monuments and corners.. Instructions and guidance on such procedures may be obtained from the Chief of the Cadastral Engineering Office, 555 Cordova Street, Anchorage, Alaska. A r,-,alty is provided for the unauthorized alteration or removal of any govern - me'• survey monument or marked trees by Section 57 of the Criminal Code of 19'2 (35 Stat. 1088, 1099; 18 U.S.C. Sec. 111). . i . The grantee or permittee shall not deface, injure, cut or remove trees !.-or, lands outside the right -of -way or material site unieas so authorized by Bureau of Land Management. 4, The grantee or permittee shall be liable for damages caused by equipment or operations to any trees or landscape feature on the public land outside the right -of -way or material site area. Restoration or other corrective measures will be required by the Bureau. 5. When necessary to cut and remove treea from a right -of -way or material " site, they shall be cut no higher than 12 inches above the ground and the limbs and branches removed. (a) All_logs or combustible material not utilized by.the permittee will be disposed of in a manner approved, in advance and in writing, by the authorized officer. (b' Burning of combustible material is authorized and may be done at the discretion of the permittee. However, full responsibility for preventing the escape of fires rests with the permittee. Any fire trepass action which might arise from the escape of pe-mittee'e fires will be in accordance to chapter 138, State of Alaska Fire Control Act. (c) Combustible material may be buried in lieu of burning. Burial site and method of burial must have the advance approval of the authorized officer. The Anchorage Fire Control Dispatcher will be contacted prior to commencing of burning activities. He may be reached by phone at 277 -0587. ADLO 2234 -1 • • 6. All operations will be conducted in such a manner as'to prevent the S erosion.of the land, pollution of the water resources and damage to the watershed and all things done necessary to prevent or reduce to the fullest extent the acarring•of the lands. • 7. The right -of -way, will be so developed and used that natural scenic • values are preserved. This includes, but is not limited Wrevegetation of cuts and fills with grass, trees or other appropriate cover, and /or utilization of other accepted screening to maintain and enhance the. esthetic value in scenic areas. Where.material sites are located adjacent to a road right -of -way, an area of 150 feet shall be left reasonably undis- turbed, or shall. be satisfactorily restored, to serve as a scenic zone to screen the pit area. 8. No commercial billboards or signs will be erected within the right -of- way, except with written approval of the Bureau of Land Management: 9. The character of streams, lakes, ponds and water holes shall not be modified except by advance approval in writing from the authorized officer. 10. The banks of all gravel pits shall be sloped to a grade of at least 3 to i.s pit installations shall be removed and the area restored to a condi- t or satisfactory to the authorized officer. 11. Berm piles within the right -of -way or material site area, or area e acent thereto., arc' not permitted. Where bulldozing is necessary for conEtruction or maintenance, the area shall be leveled before completion. 12. Any roads, trails, fences or other timprovements damaged shall be • ^aired. or replaced in a manner satisfactory to the authorized officer. For any breach of these stipulations the grantee or permittee will fully liable and accountable to the Bureau of Land Management. 14. The grantee covenants and agrees that it will comply with the provi- sion of Title V.I of the Civil Rights Act of 1964, and that it will not, for the period during which the property conveyed by this instrument is use for the purposes designated in this grant, or for another purpose inl :Iving the provisions of similar services or benefits, engage in any discriminatory actions prohibited by 43,CFR 17.3, to the end that no person in ~•1e ''sited States shall-, on the grounds of race, color, or national ort- g;.r be excluded from participation in, be denied the benefits of, or othe-- • be subjected to discrimination under the program for which the grantee received ?ederal financial assistance by this grant. This assurance shall ob:,i.Sate the grantee, or in the case of transfer of the property granted here :al, any transferee, for the period. of this grant, • ADLO: 2234-1 • 15. The grantee further agrees that it will not transfer the property conveyed by this instrument for the purpose designated in the grant or for another purpose involving the provision of similar services or bene- fits, unless and until the transferee gives similar written assurance to the authorized officer, Bureau of Land Management, that it will.comply with the provisions of Paragraph 14 hereof. • 16. The grantee agrees that the right is.reServed to the Department of the Interior-to declare the terms of this grant terminated in whole or in part and to revest in the United States full title to the property conveyed bereln, in the event of a breach of the non-discrimination provisions contained in paragraph 14 hereof during the term of this right-of-way. 17. The grantee agrees that as long as the property conveyed hereby lz used for the purpose designated in this grant or for another purpose involving the provision of similar services or benefits, the obligation to comply with the provisions of Title VI of the Civil Rights Act of 1964 :Ehal1 constitute a covenant running with the land for the term of this A. The grantee agrees that in the event of a violation or failure to comply with the requirements imposed by paragraph 14, the United Statee ray .oeek judicial enforcement of such requirements. 19. The assurances and covenants required by paragraphs 14 through 18 above shall not apply to ultimate beneficiaries under the program for which this grant is made. "Ultimate beneficiaries" are identified in 43 CFR 17.12(h) (1965 edition). • 20. The grentee 'agrees that it will, upon request of the Secretary of the InteriorVor hie delegate, post and maintain on the pioperty conveyed by this docUMent signs and posters bearing a.legend concerning the applicabi- lity of Title VI.of the Civil Rights Act of 1964 to the area or facility granted. 3 SEATTLE OFFICE 1900 WASHINGTON BUILDING / SEATTLE,WASHINGTON 98)004 TELEPHONE: 206- 682 -87jO TELECOPIER: 206- 682 -87 CABLE "PERKINS SEATTL DOM TELEX:32 -0319 INT'L TELEX:471123 PE S, COIF, STONE, OLSEN & WILLIAMS 55789 ;b 420 "L" STREET .,:\ SUITE 301 %' 7 f HORAGE, ALASKA 99501 ` 07 TELEPHONE: 907-279-8561 ,, ELECOPIER:907- 276 -3108 ((per 11 PLET E REPLY TO ANCHORAGE OFFICE W ,V JFebruary 8, 1982 Mr. Wil Walton Community Development Director Kodiak Island Borough P. 0. Box 1246 Kodiak, Alaska 99615 A he WASHINGTON, D.C.OFFICE 1110 VERMONT AVENUE,N. W. WASHINGTON, D•C. 20009 TELEPHONE: 202 -887 -9030 Kocf lok Island ®or w h Kodiak, Alm fECRivED FFB 101982 a r' 1011f'1,211121814t PM #19 Re: Gravel Pit.Deveiopment . of.Tracts B =l;-2; 3-and.4 -A, Bells Flats,-Alaska Sudivision Dear Wil: On behalf of Felton Construction Company, we take this opportunity to set forth our suggestions for development of a gravel pit in the above- referenced area. We understand that there is the general recognition that Tracts B -1 through 4 -A of the Bells Flats, Alaska Subdivision are virtually the only appropriate and viable area for new gravel pit development in the Kodiak area. In light of the planned construction in and around Kodiak, it is essential that this pit be developed in an economically efficient manner. We also suggest that it is essential that this area be developed to ensure adequate competition so that the gravel prices will remain reasonable for all potential users. As you know, Felton has a long and continuing interest in development of Tract B -1. Based upon expressed representations and assurances of the Kodiak Island Borough Planning and Zoning Commission in 1978, Felton has already invested approximately $93,000 to develop this site. In so doing, Felton has made every effort to prepare the pit to maximize its usefulness, minimize the adverse impact upon nearby property owners, and ensure that after excavation is completed the pit can be util- ized as a valuable recreational area for all Kodiak Island Borough residents. Although we have presented our specific suggestions to you orally, we set forth a few of them in writing. Should you wish further detail, please do not hesitate to contact either John Felton or myself. , Mr. Wil Walton February 8, 1982 Page 2 1. It is essential that Tracts B -1 through 4 -A be developed in a uniform and consistent manner so that the end result will be one properly developed and use- able man -made lake. If not developed in a uniform consistent manner, the result will be useless (and possibly dangerous) ponds and the waste of valuable gravel material. There are already obvious examples of the wrong way to develop pits in this area. 2. Any contract between the Borough and gravel pit devel- opers should require that the brush from each tract should be cleared from at least two - thirds of the entire tract before any gravel extraction begins. Excavation should then begin from the far end of the pit (from the access road) approximately a foot above the high water mark and progress toward the front of the pit. The pit should then be developed with the use of a dragline or a large backhoe to excavate the next twenty feet. If prepared appropriately in this manner, the end result will be a pond which will be ideal for recreational use. 3. All developers should be required to construct a berm around each pit in a coordinated manner to eliminate noise, to obstruct vision, to provide a dam between the pit and the adjacent river, and to provide a means of access around the pond when excavation has been completed. 4. Hauling should be limited to the periods between 7:00 a.m. and 7:00 p.m. Monday through Saturday. No hauling should be permitted on Sunday. This will effect a balance between the needs for operation of the pit and protection of local residents. The speed limit on all roads in the area should be maintained at no more than twenty -five miles per hour. 5. As we believe is provided in the State Gravel Pit Con- tracts, a copy of which we presume you have now obtained, all developers should be required to dress the sites to a uniform grade when all materials have been excavated. Furthermore, no waste material should be allowed to be dumped back into the lake bed. All property between each of the parcels should be strip- ped and leveled back to a final grade to ensure that they join in an appropriate manner. - Mr. Wil Walton February 8, 1982 Page 4 the pit to ensure the future development of the pit, the gravel was taken at the front. This not only makes development of the pit more costly, but, if permitted to continue, will substan- tially decrease the total amount of gravel that can be obtained. Since gravel is at a premium on Kodiak, such uncon- trolled development is clearly unwarranted and counter- productive. Felton had been assured that it would be advised whenever Tract B -1 was to be utilized for the purposes of extraction of gravel. Given Felton's interests in the tract, we are con- cerned that this continue to be the case. In last year's inci- dent, Felton received no such notification. We are hopeful that this problem will be resolved by a coordinated resolution of the development of all of the subject tracts and that Felton's interest will be recognized by the Borough. Should you have any questions with respect to this particular issue, please let us know. As we have indicated both to you and to the Planning and Zoning Commission, everyone at Felton Construction is eager to work with the Borough to develop a program which protects the Borough, ensures an economic development of this area, and recognizes the appropriate interests of all parties affected. While we cannot, and understandably will not, ignore Felton's own interests, we believe that those interests can be protected in a manner which is also to the benefit of the Borough. Thank you for your cooperation and assistance. Very truly yours, PERKINS, COIE, STONE, OLSEN & WILLIAMS By WDB:cac cc: John Felton Rio W. D. Bennett KODIAK ISLAND. BOROUGH January 22, 1982 Mr. Michael Brechan Brechan Enterprises Box 1275 Kodiak, Alaska 99615 Dear Mike, Telephones 486-5736 - 486-5737 — Box 1246 KODIAK, ALASKA 99615 Please be advised that the Kodiak Island Borough Planning and Zoning Commission tabled, for one month, your request to lease or purchase Tracts B-3 and B-4A, Bells Flats Alaska Subdivision, at its January 20, 1982 meeting. Should you have any questions on this matter do not hesitate to contact us at 486-5736. Sincerely, William A. Walton Community Development Department Director CC: Walt Ebell Dale Tubbs K-793 Case 82-009 WAW/jmj i'v.i•ry -yx- • KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION MINUTES January 20, 1982, regular meeting Page 5 Mrs. Crowe closed the public hearing and reopened the regular meeting. Mr. Ball we should wait for the other parcels of land in this area. Mr. Hill I would rather see Mr. Newland withdraw his request than us turn it down. Mr. Walton it would be to Mr. Newlands benefit if you table it or turn it down as his name will stay on the list as being interested in the land, and if there was a sale he would get a registered letter informing him of it. Mr. Ball we should make a definite decision on this case. Mr. Briggs moved to grant a request to lease USS 1701 and USS 1738 on Shuyak Island. Seconded. by Mrs. Strickert. Motion FAILED by unanimous roll call vote. 5. PUBLIC HEARING ON CASE 82 -008. A request for sale or lease of Borough Selection #195, a portion of Section 34, T19S, R2OW, S.M. on Shuyak Island. (Robert Bowers) STAFF REPORT: Mr. Walton presented the staff'report prepared by the Community Development Department which recommended denial as the Borough does not own the land. Mrs. Crowe closed the regular meeting and opened the public hearing. Hearing no com- ments Mrs. Crowe closed the public hearing and reopened the regular meeting. Mr. Ramaglia moved to deny a request for lease or sale of Borough Selection #195, a portion of Section 34, T19S, R20W, S.M: on Shuyak Island as the Borough does not own the land. Seconded by Mrs. Strickert. Motion PASSED by unanimous roll call vote. 6. PUBLIC HEARING ON CASE 82 -009. A request for lease or sale of Tracts B -3 and B -4A, Bells Flats Alaska Subdivision, USS 2539. (Brechan Enterprises), STAFF REPORT: Mr. Walton presented the staff report based on a memorandum prepared by the Community Development Department which recommended the request be tabled for one month. Mrs. Crowe closed the regular meeting and opened the public hearing. Jim Prior opposed to lease or sale of this land if it is going to be used for gravel extraction. (Owner of lots 3B and 3C, Bells Flats) Bill Bennett attorney for Felton Construction Co., discussed the Company's previous leasing of Tract B -1 and gave a lengthly history on the leasing of the lot, problems encountered and suggestions for future gravel extraction. Discussion on the Development plan for the "B Tracts" Mr. Bealey representative of the Women's Bay Community. We are working on a community Y P Y Y• 9 Y plan for the Bells Flats area. We understand the need for gravel extraction. Mrs. Crowe why wasn't the Community Plan at the December meeting like it was promised? Mr. Bealey the reason it was not at the Commission's December meeting was because the Borough Engineer was not able to get us the legal description so we were held up for six (6) weeks. Mrs. Crowe thank you. Mr. Richardson represents North Pacific Construction, would like to be able to buy one of these parcels as Brechan is the only place to get gravel. The lots should be sold to anyone who can afford it not just to Brechan. Mr. Felton Felton Construction Co., things are really beginning to look up. Also to- night I was enlightened on the fact that just because you have a lease that doe not mean you can extract gravel. Discussion between the Commission members and Mr. Felton on the correct procedures to use for gravel extraction and putting up a bond for the gravel extraction. Mrs. Crowe closed the public hearing and reopened the regular meeting. Mrs. Strickert moved to table a request for lease or sale of Tracts B -3 and B -4A, Bell Flats Alaska Subdivision, USS 2539 for a period of 30 days (February 17, 1982 meeting) Seconded by Mr. Ramaglia. Motion PASSED by unanimous roll call vote. KODIAK ISLAND BOROUGH • PLANNING AND ZONING COMMISSION MINUTES January 20, 1982, regular meeting Page 6 Mrs. Crowe there will be a joint work session on gravel extraction around February 10, 1982. When the date is established if you would like to be notified you can call the Planning Department or sign the sheet of paper being passed around and Joanne or Will will call you to let you know the meeting date for sure. Mr. Hill called for a recess at 9:50 p.m. Mrs. Crowe called the meeting back to order at 10:00 p.m. PUBLIC HEARING -ON -CASE 82- 003.—Public hearing on the 1982 -1986 Kodiak Island Borough' Capital Improvement Program. (Community Development Department) Mrs. Crowe explained the Commission's feelings on the plan as they were not involved in the process of compiling the information. Mr. Hill was there an apology? Mrs. Crowe I will let Mr. Shealy speak for himself. Mr. Shealy the Borough Code states that the Commission review the CIP, it doe not say that the Commission has to prepare it, hold a public hearing or anything just review it I suggest that the portion of the code that states the CIP be approved 90 days prior to the, budget year be changed to, be approved 90 days prior to the calendar year. Apolo- gized for the misunderstanding in the preparation of the CIP. Mrs. Crowe we would just like to be kept informed so we can make better judgements. I think that better communication has come out of this. At this time I will direct staff to make the appropriate ordinance changes and have it to us at our February meeting. Mrs. Crowe closed the regular meeting and opened the public hearing. Mr. Walton presented a brief summary of each section of the CIP. Mrs. Crowe closed the public hearing and reopened the regular meeting. Mrs. Strickert Kodiak Island Borough roads #12 is it on there to try to gravel it or what? Mr. Shealy we now have the survey, we are in the process of getting an appraisal. Mrs. Crowe I would like to see the Baranof Park Tract resurfaced in the years (82 -83) and divide the 500 thousand dollars between the City, Borough and School District. Discussion on the Jr. High School alarm system. Mr. Briggs moved to send to the Borough Assembly for approval the 1982 -1986 Kodiak Island Borough Capital Improvements Program. Seconded by Mrs: Strickert. Motion PASSED by unanimous voice vote. - 8. PUBLIC HEARING ON CASE 82 -004. Public hearing on the Kodiak Island Borough Hospital Plan, December 1981. (Community Development Department) Mr. VanWeringen Hospital Administrator. Arrived in Kodiak in January 1981. Presented the plan and discussed it in great detail. Discussion on complaints the Commission members have with the Hospital, and some other types of changes they would like'to see. Discussion on outstanding debts at the Hospital and who pays for them. Mr. Hill moved to grant approval of the Kodiak Island Hospital Plan, December 1981 and pass it on to the Borough Assembly for approval. Seconded by Mrs. Strickert. Motion PASSED by unanimous voice vote. 9. PUBLIC HEARING ON CASE 82 -007. Public hearing on revisions to the definitions section of Title 17. (community Development Department.) Tabled as it was not finished. KODIAK ISLAND.,BOROUGH MEMORANDUM DATE: January 20, 1982 TO: Planning and Zoning Commission FROM: Community Development Department SUBJ: Staff report addendum for January 20, 1982 meeting RE: Case 82-009. Request for the sale or lease of Tracts B-3 and B-4A, Bells Flats Alaska Subdivision. (Brechan Enterprises) At the Commission's January 13, 1982 work session, Mike Brechan and Walt Ebell presented the Code required "Develop- ment Plan" for the purchase or lease of Tracts B-3 and B-4A. Section 18.20.090 of Borough Code lists the minimum require- ments for a development plan. Several of the required documents have yet to be submitted. RECOMMENDATION Staff recommends that Case 82-009 be tabled for one (1) month to allow Brechan Enterprises additional time to submit the remainder of the development plan and to provide additional time for the preparation of the Women's Bay Community Plan. • 'KODIAK ISLAND, BOROUGH MEMORANDUM DATE: January 13, 1982 TO: Planning and Zohing Commission FROM: Community Development Department RA' SUBJ: Staff report for January 20, 1982 meeting RE: Case 82-009. Request for the sale or lease of Tracts B-3 and B-4A, Bells Flats Alaska Subdivision (Brechan Enterprises). 37 PUBLIC HEARING NOTICES MAILED ON JANUARY 4, 1982. REQUEST Brechan Enterprises requests the lease or sale of Tracts B-3 and B-4A, Bells Flats Alaska Subdivision. HISTORY Brechan Enterprises entered into borrow site leases for parcels B-3 and B-4 in February 1977 which provided for four (4) one year renewals. The last one year renewal period expires on February 9, 1982. On October 17, 1978, Dale Tubbs offered the following comments concerning land use planning in the Bells Flats Area: "A determination must be made as to what should happen to Tract B,should it result in a series of water bodies or should a sufficient depth of gravel be retained throughout to provide other utilities to the area? If gravel is promoted, should another road be constructed to take the truck traffic off of the residential streets? Investigations should look into the possiblity of fishery rehabilitation by making ponds. A green belt should be considered along Russian Creek." In May of 1981 the Borough Assembly requested that the Planning Commission consider the lease or sale of Tracts 8-1, 8-2, 8-3 and B-4A. Part of the Assembly's request arose from the sub- division which was accomplished by staff to divide Tract B into five (5) parcels. At the same time Tract B-5A was proposed for rezoning from Industrial to Conservation to preserve it as a park and open space area. The subdivision and rezoning were approved. The matter of leasing or selling the B Tract parcels was tabled by the Commission at its June and July' 1981 meetings. At the August 19, 1981 meeting the Commission Case 82-009 Page 2 January 13, 1Si64,-/ recommended leasing of the property. The recommendation was forwarded to the Assembly, deleted from its September agenda and tabled at its October 1, 1981 meeting. Additionally, the Commission has been working on a B Tract plan for several years and the Women's Bay Community has been accomplishing a plan for the Bells Flats/Russian Creek area. Lastly, the Borough Assembly, at its December 3, 1981 meeting, authorized the extension of the leases on B-3 and B-4A on a month-to-month basis, pending a final resolution of the B Tract issue. LAND CONSULTANT Mr. Tubbs has offered another of his "pearls of wisdom" in a letter dated December 23, 1981. He continues to point out that the Borough needs to resolve the B Tract problems. He also reminds everyone of a fact continually overlooked by the Borough and those parties involved with leases, and we quote "a lease does not authorize the removal of materials from the site (section 18.40.090)... The contract terms to removed, account for, and pay for the gravel will still require the terms of a gravel sale contract". As stated in our August 3, 1981 staff report to you The point to remember is that land is leased - gravel is sold." WOMENS BAY COMMUNITY PLAN The proposed Plan for the Womens Bay Community recommends the creation of a lake on Tracts B-1, B-2, B-3 and B-4A. It also suggests that one acre residential lots be the ultimate land use on the Middle Bay Drive/Bells Flats Road side of the pro- perty. No residential land use or additional roads are proposed for the river side of the. property. Staff supports this land use proposal as being most appropriate and one that can be accomplished. Now, how to do it? PROPOSAL The Commission recommended to the Assembly that Tracts B-1, B-2, B-3 and B-4A be leased rather than sold. It appears that a more realistic approach would be for the Borough to avoid any disposal of the property and accomplish the desired end result through gravel removal contracts which are tied to approved development plans from the party desiring to extract the resource. Leasing or selling the land may not result in the end product proposed by the Womens Bay Community Plan. DEVELOPMENT PLAN Brechan Enterprises stated in its application to purchase or lease Tracts B-3 and B-4A that a development plan would be available in January. At the time this report was written- the development plan was not available. 'l. ° Case 82 -009 Page 3 January 13, 1982 • Staff will complete this report and offer a recommendation after the development plan has been received and reviewed. BRECHAN ENTERPRISES INC. kIP RI-M 600f1( GENERAL CONTRACTOR MM MM BRECHAN ENTERPRISES, 'INC, GENERAL CONTRACTORS BOX 1275 PHONE (907) 486-3215 KODIAK, ALASKA 99615 January 13, 1982 Planning and Zoning Commission Kodiak Island Borough Box 1246 Kodiak, Ak 99615 Subject: Development Plan for Purchase or Lease of Tracts B-3 & B-4A Bells Flats Alaska, Sub-division Gentlemen: This letter serves as our tentative development plan for_the utilization of Tracts B-3 & B-4A Bells Flats Alaska Sub-division. HISTORY • Brechan Enterprises, Inc. began it's operations on Tracts B-3 & B-4A with a lease in February 1977. We have continu- ally tried to anticipate the needs of the community by pro- viding asphalt, concrete & assorted gravel products. Our products encompass use by the City of Kodiak, Kodiak Island Borough and the State of Alaska, which has benefited all. It is our intent to continue in an orderly method, to _complete extraction of gravel deposits on Tracts B-3 & B-4A. DEVELOPMENT OF-THE BORROW SITE In September 1978 Brechan Enterprises, Inc. commenced clearing and stripping of overburden on Tracts B-3 & B-4A in prepar- ation for extraction of gravel deposits. The existing trees and brush were stock-piled and burned. The overburden and We Are An Equal Opportunity Employer Development Plan Brechan Enterprises, Inc. January 13, 1982 strippings are being stock-piled around the perimeter of the pit. The overburden will be utilized to form a berm around the lake created from the gravel extraction. • The berm will be approximately 3' high x 140' wide with 2:1 slopes adjacent to the lake. To eliminate erosion, the slopes and berm will be seeded on completion. EXCAVATION OF GRAVEL 1. February 1982 - Kodiak Island Borough leases or sells Tracts B-3 & B-4A to Brechan Enterprises, Inc. 2. 1982 - 2000 - - Finish excavation of existing gravel deposits. 3. 2000 - 2001 - Complete back sloping requirements and seeding requirements. 4. 2002 - 2004 - Complete sub-division or recreational area with possible fish hatchery potential. UTILIZATION OF LAND AND FUTUE DEVELOPMENT Should the Borough elect to sell us Tracts B-3 & B-4A our proposed water front residential sub-division would be an attractive addition to the Woman's Bay Community. In the event the Borough feels a lease would better suit their long range objective, a neatly landscaped man-made lake for recreational purposes would greatly enhance the needs of the Woman's Bay Community. The lake could also serve the dual purpose of a holding pond with fish hatchery potenetal as well as a recrea- tional area. *,ta. c Development Plan Brechan Enterprises, Inc. January...:13, 1982 CONCLUSION This development plan is designed to inform the Borough of our intentions-in the event they sell or lease the land to us, and outline it's potential use in the community.. We feel the plan as presented is within the realm of economic and realistic consideration for the area and that we are best qualified to reclaim this area. Therefore, it is in the best interest of the Borough to sell or lease Tracts B-3 & B-4A to Brechan Enterprises, Inc.. We are willing to amend this proposed plan as may le_reqnire*d by the statues or the wishes of the Borough Assembly. We thank you. for cooperation and assistance in this matter. Sincerely yours, BRECHAN ENTERPRISES, INC. e Michael C. Brechan President MCB/lgk DALE P. TUBBS LAND MANAGEMENT CONSULTANT 1234 W. HILLCREST DRIVE ANCHORAGE, ALASKA 99503 TELEPHONE (907) 279-9931 January 11, 1981 Mr. Phil C. Shealy Borough Manager Kodiak Island Borough P. 0. Box 1246 Kodiak, Alaska 99615 eS' 4:1 MAR 1982 RECEIVED Subject: Minimum unit price for gravel material Dear Mr. Shealy: AM pt I 19 i1911,111,21nfiq.1M111 Kodiak Island Borough Kodiak, Alaska, RECEIVED MAR 2 1982 Part .A of Title 18.60.060 in the material sales portion of the Code of Ordinances provides for the Assembly to establish the minimum unit price for material to be sold at annual intervals That time of the year has come. No action was taken on this in 1980 or 1981. The February 6, 1979 Borough Assembly minutes on Page 6, item G, reflects the last action taken. The Assembly should either reconfirm the rates of 50 cents per cubic yard for pit- run gravel and 15 cents per cubic yard for rock to be blasted, or adjust the royalty rates to reflect inflation. Gravel being sold by some of the Regional Native Corporations in remote areas goes for $2.00 per cubic yard when small volumes are involved, and 80 cents to $1.25 per cubic yard for large projects. The gravel sales made by the State for volumes under 25,000 cubic yards have a low of 70 cents. The BLM reports gravel sales at Dutch Harbor going for $1.25 per cubic yard. The 1979 minutes indicate some confusion over the value of blasted rock. Assemblyman Fern was proposing to increase the rate to 25 cents per cubic yard. Blasted rock is worth much more, but rock to be blasted has a very low value. All the money gets tied up in drilling and crushing. There is also a difference in the type of rock to be blasted to obtain the desired grade of material. If ten ton armor rock is needed and the bedrock is fractured so that size rock cannot be recovered, the bedrock has little or no value. For smaller material, it is another matter. At this time, the Bells Flats gravel is the only game in town. No comoetitive offerings exist. It would not be out of line to up the minimum to 75 cents per cubic yard and a more true value would be $1.25. If youaincrease the price high enough, the gravel on Native Corporation"Will begin to fill part of the need. The Borough gravel resource should be offered judiciously. If the State or the Coast Guard are going to have large projects, they should be required to obtain the gravel from their own reserved material sources. January 11, 1981 Mr. Phil C. Shea ,,,, Page Two I would recommend the minimum prices be set at 80 cents per cubic yard for pit -run gravel and 15 cents per cubic yard of area to be blasted for bedrock. These are minimums and higher quality materials could be adjusted accordingly. Sincerely, DALE P. TUBBS DPT : bw KODIAK ISLAND BOROI: Box 1246 Kodiak, Alaska 99613 Kodiak Island Borough Kodiak, Alaska RECEIVED JAN 201982 1 h P ■1.1 11P11.111M0i4itiiii, FIRST CLASS MAIL NOTICE OF PUBLIC C HEAR NG 4111111111[ The Kodiak Island Borough Planning and Zoning Commission has received a petition from BRECHAN ENTERPRISES requesting lease or sale of Tracts 6-3 and B-4, Bells Flats Alaska Subdivision, USS 2539. The Kodiak Island Borough Planning and Zoning Commission will hold a Public Hearing on this matter at 7:30 p.m., Wednesday, January 20, 1982 in the Borough Assembly Chambers, 700 Upper Mill Bay Road, Kodiak. You are being notified because you are either the property owner of the above-referenced lots, or an owner of property within 300 feet of the above-referenced property. This will be Hearing_IIe,fnre_the_P)anning_al.ad-ZrIni.pg Commission_on.this_ Detition,_ and you are invited to appear and voice your opinion. If you cannot attend,'you may submit a written opinion that can be read into the minutes of the Public Hearing. If you would like to comment on the petition proposal, this form may be used for your convenience, and returned to the Planning Department. Further information is available from the Planning Department, telephone 486-5736. KODIAK ISLAND BOROUGH Department of Planning and Community Development Name 411! • 4 ". 4414-- Address 3C7( Legal Description ,44/- / /V&A &ill /AZT Comments ee.Ag. c/7A 4,,C),41,. • 7t -14"14-1 (-) /1,0eee-e/ 6-7444-e-/ Si AQnoncFt1 I .:n,:.;;,;,, Kodiak Island Borough Dept-. of planning and community development 1. am very much opposed to the proposed land lease or sale of Tracts B-3 and B-4, Bells Flats Alaska Subdivision, US 2539.. I feel there are more appropriate areas, for industrial uselland, than in the middle of a residential area in Bells Flats. Because of the growing population of this area,, the location for this industry is very undesirable. The Dust, Noise, and Road Conditions that would incur form this operation would make life in the area very unpleasant. Also the asthetic value of the property would go down considerably. I am well aware that gravel extraction is a necessary thing, however, do feel that there are many other areas which could be used for this reason, that are much more conducive to the people of Bells Flats. o_cica cic idc&e* .c.c Larn0 (0_ &- 3 0,-20 7(s 5 ozo1579. &Q- t/2-e- Ca.c:,>A d2.eowNi aiLeao), jo -LL-0L a,,L2 6/law /Lem/Le-ace), (-1A/(Lict /d.CLu_At_e_ 1600.ite._ ibtAitAktevi-ed_, 1_,aLw aido) ca,(044±16- il/k,cluxt cbKzi L6' /1th_ ciledc-ak .c4)-/P• 9'_26/o //94;? • cA„ tte4, 162,t-Q) 61: = C/Aftd. 6Outa, . ;U4<„1 ,/c_ chtoL&d: d Lt. 2L4) .6261-16, al= cQ..zi 4tk. d.ce-c_,J,Ler2c) (-11(_aloLJ KODIAK ISLAND BOROU Box 1246 Kodiak, Alaska 99615 1131■11MINIKONI■111114 FIRST CLASS MAIL Kodiak Island Borough Kodiak, Alaska RECEIVED JAN 141282 A 14 P M 31 11P1111i;kliMifiqfP HEARING NOTICE OF PUBLIC The Kodiak Island Borough Planning and Zoning Commission has received a petition from BRECHAN ENTERPRISES requesting lease or sale of Tracts B-3 and B-4, Bells Flats Alaska Subdivision, USS 2539. The Kodiak Island Borough Planning and Zoning Commission will hold a Public Hearing on this matter at 7:30 p.m., Wednesday, January 20, 1982 in the Borough Assembly Chambers, 700 Upper Mill Bay Road, Kodiak. You are being notified because you are either the property owner of the above-referenced lots, or an owner of property within 300 feet pf the above-referenced property. This will be the only Public Hearing before the Planning and.Zonino Commission on this petition, _ and you are invited to appear and voice your opinion. If you cannot attend, you may submit a written opinion that can be read into theminutes of the Public Hearing. If you would like to comment on the petition proposal, this form may be used for your convenience, and returned to the Planning Department. Further information is available from the Planning Department, telephone 486-5736. KODIAK ISLAND BOROUGH Department of Planning and Community Development Name iaitt /hp -e. sS611) dress Legal Description CommentsaLK 46 SS-4m s c ce 55 a • 5- I f' December 244198 ALE P. TUBBS MANAGEMENT CONSULTANT DRIVE ANCHORAGE, ALASKA 99503 LEPHONE 19071 279-9931 " r' 11 E LIVED Mr. William A. Walton„ Director ' Community Development Department DEC 2 8 1981 A M - PM •Kodiak Island Borough 70111,011.111P11.1M1141q19 P. 0. Box 1246 Kodiak, Alaska 99615 Subject: K 793 - Purchase Application, Brechan Enterprises, Inc. Dear Will : _ . The application to purchase parcels B-3 and B-4 (unsurveyed) of.TractB1Be11s Flats Alaska Subdivision, brings the Kodiak ' _Island Borough,to-a "fish or cut bait" situation. The material leases Brechan Enterprises, Inc. (Brechan) has held for five years expire in February, 1982. The resolution to continue the leases on 4,month-to-month basis passed by the Borough Assembly. purports .t0 extend the 'leases on the expired contract terms even though the,dordinanCe providing for 25 cent per cubic yard gravel was repealed in 1978. Brechan maintains and provides a vital business to the Kodiak ,:area. The continuation of a gravel supply to it, or any competitor, ' is critical. As long as the Borough, State, and federal governments continue to hold title to all the gravel supplies in the Kodiak area,.industry has little choice in opting for alternative material sites. The Borough has been looking at Tract B of Bells Flats Alaska Subdivision as an approved material source. The extent of excavation and manner has been wrestled with since 1978- with.several ideas but no Money has been appropriated to properly investigate any of the alternatives,. If the Borough is to sell the parcels for 'gravel.eXtraction, your only chance for receiving fair market value is to-determine how much gravel is located therein and include it in-the .sale price. There are 1613 cubic yards of gravel for every acre-foot o.f .grOund. This adds 800 dollars (at 50 cents/cubic yard). per foot of .depth per acre. If you don't know how many yards ' of gravel you are selling, it will be difficult to obtain the market value for the public asset. This will be more true if -no true competitive -Market is developed. The alternative to lease the land is a carry-over from the old gravel lease ordinance terminology. If you are going to lease the land then appraise the site.for its true"market. value and charge an annual rental fee commensurate to industrial land. A December 23, 1981 Mr. William A. Walton Page Two lease does not authorize the removal of materials from the site (Title 18.40.090). The removal of gravel will still require the market value of the gravel to be paid above and beyond the rental value of the land. The contract terms to remove, account for, and pay for the gravel will still require the terms of a gravel sale contract. A lease on industrial land should be worth at least $2,000 per acre per year. Twenty acres would bring in $40,000 plus the royalty rate for the gravel. Title 18.60 provides for material sales where the Borough receives a royalty rate for each cubic yard of gravel removed. There is no need to lease the land because the material sale contract provides for occupancy of the land to remove the gravel, a royalty rate for gravel, a payment schedule, approval of a mining plan, etc. If the mining of gravel is not going to improve the site or return the site to a condition comparable to the original state, then the gravel royalty rate should be increased to compensate for the loss of the site. The site can, for all practical purposes, be lost if it is excavated to one foot below the ground water table or twenty feet below the water table. Brechan states it will submit a development plan in January 1982. Hopefully the plan will address the issue of how much gravel is expected to be recovered and develop the site to a final condition acceptable to the Borough. This could be put on a more competitive plane by requesting all interested parties to study the area for a public offering to be made in 1982. Each interested applicant will then have an equal opportunity to analyze the site. More than 30 days is needed to evaluate the site or sites. The Borough needs to look into disposal of this asset more in the nature of a joint venture. You would advertise for a developer and enter into a contract with the company that proposed the most acceptable plan and royalty rate. I question the need for the P & Z Commission to act on this request if they have already determined this area suitable for gravel removal. I recommended we prepare an offering that goes to the Borough Assembly for final approval, modification or rejection. This will keep the Assembly and Commission from getting involved in the administrative process. Sincerely, DALE P. TUBBS DPT:bw KODIAK ISLAND BOROUGH December 17, 1981 Mr. Dale Tubbs Land Management Consultant 1234 W. Hillcrest Drive Anchorage, Alaska 99615 Dear Dale, Telephones 486-5736 - 486-5737 — Box 1246 KODIAK, ALASKA 99615 Attached please find a request from Brechan Enterprises for the lease or sale of Tracts B-3 and B-4, Bells Flats Alaska Subdivision. We have scheduled this request for the Planning Commission's January 20, 1982 meeting. Your comments on this item would be appreciated. Sincerely, William A. Walton Community Development Department Director CC: Mike Brechan' C. Walter Ebell ;Tile Case File WAW/jmj • HARTIG, RHODES, NORMAN & MAHONEY A PROFESSIONAL CORPORATION_ ATTORNEYS AT LAW SUITE 201 717 K STREET ANCHORAGE. ALASKA 99501 TELEPHONE: 19071 274-3576 TELECOPIER: 1907) 277-4352 TELEX: (090) 25 -404 xi ROBERT L :HARTIG (1928 -1980) :•'�>AMES D. RHODES t" • JOHN K. NORMAN :• °ROBERT J. MAHONEY ,,.i;BERNARO J; DOUGHERTY :f-la.:MICHAEL W. SHARON y ROGER H. BEATY `EDGAR R. LOCKE ::.;.MICHAEL ROBBINS WALTER EBELL SPENCER C. SNEED iY MELVIN M. STEPHENS. 11,,-7ROBERT C. BRINK =�10F COUNSEL: Ni;'-'74. KENT EDWARDS KODIAK OFFICE: 202 CENTER AVE.. BOX 503 ,•'� KODIAK. ALASKA 99615 19071 486=3143 C. WALTER EBELL MELVIN M. STEPHENS. II• 99615 • Brechan Enterpr es, Tracts B -3 and B -4 :...Bells Flats Subdivision' Our File No. 599 -K33 ear Mickie: ';...Please find enclosed the application of Brechan Enterprises, Inc. to purchase, or in the alternative lease, the above captioned property. The development, -plan is in the process of being completed and will be submitted in January, 1982. We would request that the matter be placed on the Planning and Zoning Corm. .mission's agenda for its January meeting. Thank you for your cooperation. If you have any questions, please do not hesitate Best regards. CdE:jve Enclosure cc: Brechan Enterprises, Inc. Will Walton (W /encl.) to call me. Very truly yours, HARTIG, RHODES, NORMAN, MAHONEY & EDWARDS By: C. Walter Ebell Kodiak Island Borough Kodiak, Alaska RECEIVED (w /out encl.) DEC 141981 L 1.1 PM 0 }I 1011;1112111213(4t5Lt Mrs j Mickie Borough Clerk Box _1246. Kodiak, Alaska 99615 Brechan :Enterpri:ses, Inc Tracts , B -•3 : and "<B -_ 4 _Bells! 'Flats. S i bdivision - Our File. No 599-K3'5 Dear Mickie . Kodlak Island Borough ;Kodiak; Alaska HEC'.EIVE -D: 1981 t j 1114g 1-i 1.3� 1q1 Please' 'find enclosed the -; applications,of Brechan Enterprises, Inc: to , purchase or in the alternative's. lease the above captioned_ property... -The development plan is in' -the- process of _being, completed and will be submitted in January, 1982: ; We :would. request that _ the'' matter be placed On .the Planning and : Zoning.' Com- mission' "s agenda for • its - January. ;meeting :.,._Thank you,'-for- your.• cooperation. :If "'you have any questions, please ` do not :.hesitate to call me:. 'Best 'regards . • CWE:jve: Enclosure :Very, truly yours-; - -`"HARTIG', RHODES:;- NORMAN, MAHONEY '& 'EDWARDS =Walter: <Ebe cc:. .Brechan',Enterprises , :Inc �: (w/out encl. ') Will . Waton (w /enc1.,) 4111 KODIAK ISLAND BOROUGH 4111 P.O. Box 1246, Kodiak, Ak. 9.9615 Filing Fee $25.00 - Not Refundable Casefile No. I. Application For Borough Land or Interest Therein A. [9 Sale (in thp alter—C. 0 Easement B. C9 Lease native) D. 0 Material (gravel) Name of Applicant (Print) Brechan Enterprises, Inc. Mailing Address P.O. Box 1275, Kodiak, Alaska 99615 Land being applied for is in: Township South, Range Section, U.S. Survey No, or Subdivision: Aliquot Parts, lot & block or metes & bounds: Tract B-3 and 4; Bells Flats, Alaska Subdivision West, S.M. use additional sheet if necessary Proposed use for land or interest therein and time schedule for use or development: Dey.elopment.Plan 741:1. be sent in January use additional sheet if necessary What improvements, if any, are now on the land? no permanent improvements • Who owns the improvements? II. Answer appropriate questions for your type 'of application. A. Sale: Do you have a proposed development plan for the site? yes B. Lease: Do you have a proposed development plan for the site? yes What term of lease is requested? 25 years C. Easement: Attach a map showing route location, R/W widths, lengths and existing adjacent easements. Material: 1. Volume oil material requested n/a 2.* Length of sale requested. n/a . years. 3. Attach map as required in- Material Sale Ordinance 18.60.020. E Timber: Volume of timber requested - n /a' Length of sale requested. n/a years. . F. Use Permit: Attach map showing area. requested. III. I acknowledge this application is merely on expression of interest with no right or priority in the lands applied for. Michael C. Brechan 0 he,/ 40 . 30, November 1981 Signature of Applicant or Date authorized corporate officer. 4 h! Kodlok Is /Qn R kodlOk A eori �' C 74; sko OEC 1 198, 11.12. ..2 A ip KODIAK ISLAND BOROUGH Telephones 486 -5736 - 486 -5737 — Box 1246 KODIAK, ALASKA 99615 November 16, 1981 Mr. Walt Ebel? Hartig, Rhodes, NOnaan and :Mahoney Box 503 Kodiak, Alaska 99615. Re: Kodiak Island Borough Lease Tract B -3 and B-4 .Our File No; 599 -K33 Dear Walt: The Borough Assembly at their regular meeting on November 9, 1981 unanimously agreed to your request–of November 3, 1981 ' to extend the leases on the above captioned. tracts scheduled to expire in February, 1982 on a month -to -month basis as-long as good faith is being exhibited by the applicant in resolving renewal and /or purchase of..the.`subject property. I will-be looking forward to working with you on resolving this matter to the satisfaction of your client. Sincere r Phil C. Shealy Borough Manager CC Will Walton, Planning Director mdd KODIAK ISLAND; BOROUGH MEMORANDUM DATE: August 3, 1981 TO: Planning and Zoning Commission FROM: Community Development Department RILWILeAJ SUBJ: Staff Report RE: Case LL-81-001. Lease or sale of Tracts 8-1, B-2, B-3 and B4-A, Bells Flats Alaska Subdivision. (KIB Assembly) This item has been tabled by the Commission for the past two months. Subsection 18.20.030(A) of the Borough Code states ..."Each dis- posal of borough land is subject to review by the Planning Com-. mission before submission to the Assembly...". The basic question before you is whether or not the Borough should lease or sell the "B Tracts". LEASING If the land is leased it is temporarily in the possession of an- other party, the leaseholder. Land leasing however does not permit the removal of gravel or any other resource on the property. Section 18.40.090 - Use of material - of the Code States "The leasee shall not sell or remove for use off the premises any timber, stove, gravel, peat moss, topsoils, or any other material valuable for building or other commercial purposes ..."The point to remember is that land is leased - gravel is sold. If the "B Tract" land is leased by the Borough that is all that happens - a land lease. How then to remove the mineral resource? Chapter 18.60 addresses Material Sales. Section 18.60.010 states "all materials to which the borough holds title may be sold pur- suant to contract approved by the Assembly. The manager shall recommend to the Assembly a form of contract, including limitations, conditions, and terms of the sale...". This then is the answer to the removal of materials question if a lease is involved - a con- tract with the borough for removal of the resource. Memorandum, page2, Case LL-81-001 (- ) August 3, 1981 SELLING It has been said recently that leasing is preferable to selling because the Borough will have "more control". This may or may not be true and depends totally on better administration of leases by the Borough than has occurred in the past. The sole avenue for control of the activities of a property purchaser would be deed restrictions or covenants. Depending on the type of zoning chosen for the "B Tracts" conditions (performance standards) may or may not be forthcoming as conservation zoning permits gravel extractions while RR zoning needs an exception plus conditions. The most appropriate course of action to follow for the "B Tracts" appears to be leasing the parcels for gravel extraction and enter- ing into a ten (10) year or longer contract for the sale of the materials to the lease holder. This course of action is clouded by the 5 year maximum lease restriction contained in Section 18.40.020, subsection (A). That problem area has been referred back to the Borough Attorney and Borough Land Consultant for additional work and comments. RECOMMENDATION Staff recommends tabling Of-this case for one month to allow time for receipt of the Borough Attorney and Land Consultant's opinions. KODIAK ISLAND BOROUGH MEMORANDUM DATE: July 27, 1981 TO: Philip. Shealy, Manager . FROM: Will Walton, Director of Community Development alillii/aai(-- SUBJ: Ordinance No. 81-37, Negotiated Leases. Per your direction, I have rewritten the subject ordinance several times and researched Title 18 on Borough Real Property. In my opinion (and I'm not yet licensed to practice law in Alaska), the proposed ordinance is not needed. Section 18.60.010 - Materials Available, states, "all materials to which the Borough holds title may be sold pursuant to contract approved by the Assembly. The manager shall recommend to the Assembly a form of contract, includ- ing limitation, conditions and terms of the sale. "Materials" means nonrenewable, natural, extractive resources including, but not limit- ed to, gravel, sand, soil, rock and peat. "Materials" shall be con- sidered real property for the purposes of this title." Concerning the oftemstated one year limit on leases please know that there is no referencein Title 18 to such a limit. Leases can be negotiated for 5, 25; or 55 years, depending on the type of lease involved and the status of the proposed lease holder. FINDINGS. The Borough can sell materials by contract under Section 18.60.010. Said contract could be for any period of time and contain appropriate conditions to maintain the Borough's interests. Proposed Ordinance No. 81-37 is not needed. KODIAK ISLAND BOROUGH TO: FROM: DATE: MEMORANDUM Will Walton, Planning Director Marcia Enos June 9, 1981 Information requested: Bells Flats "B"-:Tracts RECOMMENDATIONS::&-CONSIDERATIONS Basically, the recommendation is to impress upon the Assembly the need for it to take action On the Bells Flats "B" Tract. The main decision, it appears, would be a resolution to declare the "B" tract a particular type of area with a stated future. The "B" tract should be handled as a "development toward residential" piece of land, through one of the following possiblities: 1) made into an ordinance specifying a new type of special zoning, or done by; 2) initiating contract zoning, or, as suggested by the Bells Flats committee; 3) rezoning Bl through B5 as residential-I4ith-publicruse:with a variance allowed until the area is prepared for building, or; 4) some other formal means. Since the Bells Flats community strongly feels that the parcels, B1-B4, should eventually become residentially zoned, yet realize that gravel is needed by and benefits the community of Kodiak, they have suggested that the parcels B1-B4 be designated a residential-with--public-use zone now to protect::the area from pOssible non-compatible industrial uses in the future. Retaining the industrial zoning, they feel, would leave the area open to decisions for uses not leading toward residential use in the future (10-20 yrs.) - when new committees, Assembly members, planning Officials, etc. are making lease agreements with new parties. Who would remember the original intent? And who would go back ten or more years to check up? Dale Tubbs, possibility stated that desires and There still 1) 2) 3) 4) 5) Land Management Consultant ,for the Borough, agrees that'zthe they (the Bells Flats' residents) project is a real:one and the R-1/public use with variance is a way to serve residents' the Borough's concerns (financing, zoning). remaim the problems, however, of - Who gets the variance?; • The "sChedule" of development; Whether a large or small operator would find it economically feasible to extract gravel according to development "rules"; Whether to lease at all (Bells Flats residents are opposed to a sale, particularly if parcels are not rezoned to residential); Whether to demand a particular duration to a lease agreement for use of the land (e.g. minimum term/maximum term?, renewable clause with/without preference to current lessee) or rather to sell gravel, such as 5,000 yds., within a particular framework. Will Walton June 9, 1981 Page 2 6) Whether any stipulations placed on the "B" use prior to "end" use (i.e. to what is planned for the area post- extraction) can or would be enforced, and by whom, and in what manner - and according to ordinance sales (material sales) contract terms and conditions (as stated in ordinance: that lessee conforms to "whatever" is in sales/lease document)? Further Considerations: 1). Develop an end-use date with a good picture of "B" post-gravel period. If this is put in the lease agreement, it alerts lessers to how long they have to extract, "improve", conform to their (approved) develop- ment plan and to "clean up their act" pre-exit. 2) Shorter lease periods than the above-mentioned now-to-end duration (which would be in 10 years if end-use date was set for June 1991) may be allowed and/or desirable. If allowed, a development plan, generated by the P & Z Department or its authorized "agent", should be on record and stipulated in the lease/extraction terms so that , . spot development, for each of the parcels (tracts) and for the overall tract is avoided. Spot extraction could render the land unusable_and lessen the value for future uses. 3) Earmark each parcel (pre-plan) with conservation zones, include these (pre-print) in each parcel's lease, so that the proper screen is assured and the trees (50-100 years old) along the perimeter of the "B" tract are not torn down (as has been done). The trees add to the "pristine" (quote Maass) nature, are desirable as a screen and in a (future) residential area, are located on the outer portions of each parcel..and would add to the value of the land later on. 4) Dale Tubbs recommends separating the lease rate from the royalty rates for gravel parcels. 5) Tailor each lease to unique, individual area - can expect Bl and B4, outer parcels, to differ from B2 and B3, both bounded by other "B" parcels - development plans. 6) Consider who will be able to or would want to lease "B" tracts with development standards: Combining the parcels and requiring phased, orderly development within a specified time period, might well be the "easiest" means to control/monitor con- version to residential use and at the same time, be economically feasible for a gravel operator, BUT a monopoly situation may occur. COULD require gravel owner "to sell to all purchasers at an established rate and to not freeze out any purchasers" (quote by Dale Tubbs, June 9, 1981). PROBLEMS: different gravel:= different rates; supply/ demand theory; anti-Brechan attitude; enforcement; and standard problems, such as measuring/assessing gravel (volume) sold, particularly for different gravel; .1 small operators without access to "B" parcels. 'Will'IWaltdnI.,-.- '. (--, June94.1981.7.:':-. Page--E3, Using existing parcel divisions and stipulating certain development "improvements", such as roads and using only specific transport routes, may not be economically viable for small operations - a large investment (according to Dave Crowe, Dale Tubbs, Mike Brechan, and Felton Construction) is needed initially to "start up" a pit area; if lease term is too short, there may not be any "takers" - the Borough loses on rent, royalties, gravel. Must decide now - perhaps no one decision will be the ideal, •but time is now to make a stab at it. 7) Make lease include conditions to at least develop a road - set a time limit (e.g. within five years for this to be done). Leaving an open ended term, say "at the end of ten years" is not likely to produce desired road (Maass, Tubbs). Need a policy upon which whatever monitor- ing agent is implemented can enforce the end-use development schedule, make recommendations to the P & Z Department in interim periods (regardless of whether leases are single-shot or several short-terms), adjust (update) comprehensive plan in a more trackable manner than done now. 8) NO ONE KNOWS WHAT IS IN THE "B" TRACT (Crowe, Tubbs). UNKNOWNS NEED TO BE KNOWN. - How deep is the gravel? - Is a lake really possible? - If it is, what will its creation do to water table of residents? - If extracted according to the present end-use proposal (residential area, surrounding a lake), what can be done with the "lake" hole if it is found that water flows through arid. does not fill the pit? - How will the Borough assess the value of the gravel - differing conditions may affect value of gravel and degree of difficulty, extracting that gravel, and processing access affects sale value. Borough does not know how deep, what kind, or-where the gravel lies. Neither has it consistently assessed the gravel extracted to date (have accepted without performing verification of figures, Brechan's estimates - Crowe, Tubbs, June 1981). This will not be easy to resolve (Crowe, Tubbs). - Gravel, if measured by weight, is affected by "wetness" (expect gravel from below water); by grade (size), by amount, time stored. - Gravel by volume-- similar concerns. - Gravel by size of "hole" (or part) - not sure of problems here, but expect amount of soil/gravel mix, when in water, etc., imposes measurement problems and review by some assessor. RECOMMENDATION - Proposed by Dale Tubbs Core drill area to see if a lake is feasible, determine depth of gravel (lake) to a reasonable limit (20 feet?) for entire area and formulate development schedule accordingly. Core drilling is expensive, though costs vary greatly, and requires a call to soil consultant for more accurate esti- mates. Dave Crowe suggested $50,000 - $100,000 is not a far-off cost for about 100 test pits, the expected number necessary to cover the topographic "realities" of the Bells Flats "B" tract. - Gives P & Z a more realistic picture of what is possible; - Gives Borough better idea of land/gravel value; - -Gives industry basis for investment decision; ,r‘ - Permits assessment and sale/lease terms indicatOrs; - Settles some of the aboe issues; ,Will Walton June 9, 1981 Page 4 Provides development decision • by - -making data base; - May discover area to really be suited for longer -term "mining ", delaying conversion to residential use; or discover small, or difficult amount of gravel which is not really worth the hassles- incurred to date; or find out it will be better extracted by large (with economies)_operator-; or may discover very uneven nature of topography and need for change in land -use design (and change in development scheme). I believe, from a discussion I'...had with Bruce Maass (at KIB on June 8, 1981), that the Bells Flats residents are all for any informed plan for the "B" tract. If it proves to be unrealistic to make it eventually residential within the next decade, or ever, it is my impression that this would be acceptable - as long as that "decision" arrived at by P & Z and the Assembly is justified - and it is not justified by mere opinions. It can be justi fied by bringing in technical knowledge of the area and fitting this into a plan of action, not reaction. They have a preference for the area to become residential as soon as possible, and for it not to become the "junk heap" that Large's and Deater's (plots) have been (illegally) allowed tobecome. and really they want better planning and management of the area. They do feel the Borough has the potential to be a more responsive body, understand some of the problems involved in enforcing conformance to material sales and zoning regulations, •recognize . the value of continued gravel operations, and basically appear to be open and willing to com- promise. They are seeking to become a second -class city eventually. Right now they would like to become involved in the planning, but do want some expertise involved, too & they are willing to accept what is feasible and durable. KODIAK ISLAND BOROUGH MEMORANDUM DATE: January 13, 1981 TO: Planning and Zoning Commission FROM: Borough Engineer Aff SUBJECT: Bells Flats Gravel Site Development The Borough Attorney has prepared a standard lease which can be used for future gravel leases of the "B" Tracts, and a proposed ordinance change which will allow negotiation of gravel leases. I recommend that the following provisions be inserted in all "B" Tract leases to control: development: 1. Dispose of all brush, trees, and stumps off site; 2. Strip overburden and spread uniformly on land reserved for future building sites; 3. Cross-section area after stripping overburden and submit to Borough Engineer; 4. Excavation side slopes limited to 11/2:1 slope from original ground at property line for future building sites; 5. Access road to be constructed within proposed road right- of-way; 6. Re-cross-section annually and submit to Borough Engineer for computation of quantities. In the case of leases negotiated in the area of .the existing "B-1" and "B-2" Tracts, I recommend that the following provision be added: Excavation will be limited to the depth of the water table. In order for an operator to amortize his development costs, I would recommend that leases be negotiated for a five-year period with renewal rights if the site is being actively operated. k 1 ZL-P-DO / DALE P. TUBBS LAND MANAGEMENT CONSULTANT 2207 SPENARD ROAD, SUITE 204 ANCHORAGE, ALASKA 99503 TELEPHONE (907) 279-9931 October 17, 1978 To: Harry Milligan Planning Director Kodiak Island Borough From: Dale P. Tubbslabearrn Land Management Consultant Subject: Land Use and Disposal Planning - Bells Flats Area The continued use of Tracts A and B of the Bells Flats Alaska Subdivision as gravel extraction areas needs review by the Planning and Zoning Commission. An on-site examination of the tracts was conducted by Robert Marmaduke, borough engineer, and 'myself on August 24, 1978. It is apparent the continued use of the tracts as a gravel supply can leave the borough with some useless acreage. The gravel extraction should be based on an end resulting land use plan that would leave the borough land of value. The examination also revealed instances of unauthor- ized occupancy. To assist the Planning and Zoning Commission in understanding the existing condition, I submit the following observations and possible recommendations: Tract A Bells Flats Alaska Subdivision Parcel P-1. This parcel is occupied by Brechan Enterprises. There has been considerable excavation within the parcel with some holes 20-30 feet below the road grade. The parcel is also occupied by Brechan's hot mix batch plant and other gravel pro- cessing machinery. No plans have been presented as to the final profile for the parcel. It is not known if the operator intends to go deeper or move the batch plant and work the gravel beneath it. Recommendation - Require a final profile for the parcel to result in a continuing useable industrial site. Utlict; hand 1ootgh KOAK, ALA‹A RCEflIEI OCT 1.9 1978 NW PM TA9a9A.11p2a$20814i5a6 Parcel P-2. P-2 consists of two narrow parcels lying between Sargent Creek Road and Navy Tract II. Each parcel averages about 100 feet in width and 800 feet in length. One of the parcels is being used for equipment storage without any apparent authorization. Both parcels are too narrow for extensive development. Recommendation - The two parcels could be cleared for ware- housing use on a lease basis. If Navy Tract II adjoining the parcels to the east is released for borough selection, a replat of the area would give greater utilization. Need for a fire station may also be appropriate in this area. Parcel P-3. This parcel is bounded on the north by Uganik Drive, on the south by Cape Chiniak Road, and is bisected by Russian Creek. It is 500 feet wide and 1,400 feet long. No existing contracts or leases encumber the area. The Russian Creek channel accounts for one-third of the area. The remaining area is level and does not rise much above the flood plain. Recommendation - Subdivide the parcel into a minimum of three units. One of these would be the river with necessary green belt to protect the river environment. The other two units would have access to existing road and would be utilized for a variety of uses. Gravel extraction is not recommended because of their proximity to the creek. Any extraction could affect the river course and would result in turning otherwise good useable area into a lake. Parcel P-4. P-4 has been under lease for gravel extraction. The parcel lies on both sides of Sargent Creek Road and Sargent Creek flows in and along the east boundary. Excavation to date has taken partsof the parcel down to the water table, rendering those portions unuseable. A request has been submitted to the borough to issue a new gravel lease for the parcel. Residential zoning borders the parcel to the north. Recommendation - Determine a final profile for the tract and let a gravel contract to groom the site. Any excess gravel could be removed. After the site is rehabilitated, the resi- dential use could be extended into this tract. Parcel P-5. This parcel: is_ commonly referred to as the navy metal dump. The site is at grade with Russian Creek and should not be used for gravel extraction. Recommendation - This parcel should be subdivided along with .2. Parcel P -3 to protect the river environment. That portion not in the river tract could be made available for commercial or industrial purposes. Parcel P -6. A gravel lease renewal was given for.this parcel in 1978 that expires in April, 1979. Even though the contract has existed for more than a year, no extraction of any conse- quence is apparent. There is past Borough Assembly action removing this parcel from use as a material source. Apparently this was overlooked in renewing the lease. Recommendation - Subdivide the area along with that portion of Parcel P -4 lying north and westerly of Sargent Creek Road as residential and commercial. Residential lands bound this parcel to the north. Parcel P -7. P -7 has been further divided into 7A and 7B. 7B is under a gravel lease. The terrain rises above the road grade and could be lowered to bring it on grade with the road. Only a limited amount of material has been removed. 7A is being used for vehicle and equipment storage without the authorization of a lease or permit. Recommendation - Allow material extraction to bring the site on grade with the road and then change the use to commercial or industrial. Parcel P -8. This parcel has been deeded to the Cattleman's Association. The deed should be reviewed to determine if the use conforms to any restrictions that may exist in the deed. Tract B Bells Flats Alaska Subdivision Tract B has been divided into five separate parcels. The tract is bounded on the north by Russian Creek Road and on the south by Russian Creek. Four of the five parcels have gravel leases on them. The tract is generally level and is part of the old river channel and flood plain. A high water table is apparent in most of the area. Parcel B -1. This parcel was recently leased and as of the day of inspection only a few hundred cubic yards of material have been removed. A gravel lease had existed on the parcel for the previous five years with no activity taking place on it. .3. • • Parcel B -2. -A gravel lease was entered into on June 22, 1976 with the right of 4 one year renewals. No excavation or use was evident on'the.day of = inspection. Parcel B -3. A gravel lease was entered into on February 9, 1977 with the right of 4 one year renewals. No excavation or use was evident on the day of inspection. Parcel B -4. A gravel lease was entered into on February 9, 1977 with the right of 4 one year renewals. Excavation had begun on the site 2 -3 weeks before the inspection. Less than 3 acres had been stripped and the gravel was removed down to the water table (less than 4 feet). Continued excavation on the site had begun by using a backhoe to bail for gravel 8 or 10 feet below the water table. Parcel B -5. This parcel is not under any contract and no use has been made of it. Recommendation - A determination must be made as to what should happen to Tract B. Should it result in a series of water bodies or should a sufficient depth of gravel be retained throughout to provide other utility to the area? If gravel is promoted, should another road be constructed to take the truck traffic off of the residential streets? Investigations should look into the possibility of fishery rehabilitation by making ponds. A green belt should be considered along Russian Creek.- Russian Creek Alaska Subdivision & ASLS 72 -11 A number of tracts in Russian Creek Alaska Subdivision and Alaska State Land Survey 72 -11 are surveyed parcels presently zoned as business and unclassified. Some thought was made at one time to identify a school site in the area. This should be re- evaluated and, if it is still a consideration, the site should be identified. Consideration should also be given for other public facilities such as a fire station, school bus parking, etc. Additional Planning When planning consideration is given to the above mentioned areas, the adjacent surrounding land should be included as influencing factors. Regardless of the final ownership, (borough or native corporation), the pressure to utilize the undeveloped areas will develop. Of immediate concern is the land between the Cape Chiniak .4. • Road and Women's Bay,.Salome Creek area, Russian Creek-river bed area, shown on the zoning map as Department of Highway, but is not, and the area along Sargent Creek west of Bells Flat Alaska Subdivision. cc: Stuary 0. Denslow .5. kItECIO\PI.\\ \\Date\CLe----s .19c'sw‘\\ \■6 \N\ \gseceivedFrom .;\ , NA dress\ ' •.„ • , \n‘,,;:,;‘;‘;' \`• tiM ‘‘.;:\ •••X • ;>, • ‘‘,„ • \ .\\ • s„\: • \ '•`\• , . , • '; • '\`‘X ''W0.1461;VPAiD, CCQJNT' VPEE&. • \ Z\ WP\ ■\e. Het • k\1\P \ \\A \ \V3 .91, r )(/.0 xs-oo 6 o e, aeo ade_oicetted $ a1 6 5 a ,91.4e.01 /kitiA) -P- a-t1 Liettoz= If 7 60 4",e- Sleet - Vc 6 2 " I_ 1e vs.c) t, 3 45g 7 isog 110 A 72 o h d y� { �s . )56 iC ?? ffoe1 /c� 0s� s^qcio°9 (t(5>I`j ‘10C9 • • � ----�'To Kodiak 9.9 Mlles KODIAK ISLAND BOROU Box 1246 Kodiak, Alukx 996U FIRST CLASS MAIL NOTICE OF PUBLIC HEARING The Kodiak Island Borough Planning and Zoning Commission has received a petition from BRECHAN ENTERPRISES requesting lease or sale of Tracts ,B-3 and B-4, Bells Flats Alaska Subdivision, USS 2539. The Kodiak Island Borough Planning and Zoning Commission will hold a Public Hearing on this matter at 7:30 p.m., Wednesday, January 20, 1982 in the Borough Assembly Chambers, 700 Upper Mill Bay Road, Kodiak. You are being notified because you are either the property owner of the above-referenced lots, or an owner of property within 300 feet of the above-referenced property. This will be the only Public Hearing before the Planning and Zoning Commission on this petition, and you are invited to appear and voice your opinion. If you cannot attend, you may submit a written opinion that can be read into the minutes of the Public Hearing. If you would like to comment on the petition proposal, this form may be used for your convenience, and returned to the Planning Department. Further information is available from the Planning Department, telephone 486-5736. KODIAK ISLAND BOROUGH Department of Planning and Community Development Name Address Legal Description Comments C'----.." ..",....,-.4../.7 . i, ■ t• „,.4 ',.‘,..-.-1, ■.. :"......, r..X.. , \ .^-..,--, , .'•-, ..,. / ',-• .s.----,---,---:-, ,- ..,.) '...," •\P'."---,-..1 ,, ,.‘. . . \Y:e;.‘,•frni • • :'*-,-'0\ ) .....;;;„......., 1 / • • --- / • \ • Ikod‘ z'lk 9 \ks ' c1J-s Rgc,3o0901 _ 9.'0D 00o9e0 a _ _ R 900 3009So rR90o3Gyp9So/ R goo�cx,�ga �� 3A k967o 3o /o0 /0 M 0D 3o) oc,3c6 __ _'i0o_30/0031 R.962b30 /0o,3_ 1Q _900.�3o /vo 3 3 R 906 36/ooYO q 00 30-7005-0 k 90o307oo cp o 7 d R9o0 307007© ? - R 4O030700£r0 81 ARoo3o7cy)81 G ! ;44i01.230?00Ea, 21 ! if? 9vo30703 i`900 30 -700F0 to- 07orOo- !IA : w0-370// )1f ; % 9003070// �1c : X9003070// 3 1i 2 ti 003cD7o:ns- 110-3 1 R 00-30-7o eats '9oo3o70117 11. _A-1 goo c/000o/7 i 17f. Ate; X Gov 5'd000 -Q - 90;V000i4o 9000 /oao R9v0 (Ix 103© R 9U0V / © .3l ; : 9aoyoo /0 R 90o 14x /x/v R- 9'ro goo /byi A_ 9oovUO /e90otioo /vzpo R9oo Yea a.) 70 A • • .4 • •• t•••• • • .• •• • • • .•... •• •,• •••• • : • ;4 •.• r• • . • . • ' e• ••••-,e- ,•'' • 1 •kAr7i 6:5-1 lag