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HomeMy WebLinkAboutMinutes 03/28/1978 473 CITY COUNCIL MEETING Port Angeles, Washington March 28, 1978 I CALL TO ORDER I The special meeting was called to order by Mayor Haguewood at 7:30 P.M. The purpose of this meeting is to discuss current litigation in an Executive Session, consideration of a lease with the Port of Port Angeles for a small boat moorage facility east of the Municipal pier site, reconsideration of proposed leases for the Oak Street Pier, preliminary consideration of a comprehensive program under the HUD Small cities Block Grant Program, dis- cussion of the BLM informal public hearing on the EIS for the Northern Tier Pipeline proposal, and consideration of purchasing three lots for Civic Field parking. II ROLL CALL Members Present: Mayor Haguewood, Councilmen Anderson, Boardman, Buck, Duncan, Hordyk, Wray. Members Absent: None. Staff Present: Manager Whorton, Attorney Walrath, Deputy Clerk Caso. D. Frizzell, P, Carr, D. Flodstrom, R. Orton, J. Honnold. Guests Present: L. Sunny, H. Emerson, R. Helgeson, J. Steinman. III SUSPENDED IV LEGISLATION I 1. EXECUTIVE SESSION TO DISCUSS LITIGATION Mayor Haguewood, the Council members, Manager Whorton and Attorney Walrath left the Council Chambers to meet in Executive Session in Manager Whorton's office to discuss current litigation. 2. PORT OF PORT ANGELES PROPOSED HARBOR AREA LEASE Manager Whorton reported to the Council concerning the Port of Port Angeles leasehold interest in the Department of Natural Resources Harbor Area Lease No. 1552, the City's desire to acquire the Harbor Area Lease for the con- struction of the Municipal Pier, and a subsequent future lease of a portion of said harbor area from the City to the Port for a small boat moorage facility east of the municipal pier site. I According to Manager Whorton, the port Commissioners have executed an "Agree- ment to Lease" whereinihe Port agrees to execute an "Assignment of DNR Harbor Area Lease No. 1~52" to the City and the City agrees to sub-lease to the Port a portion of said DNR Harbor Area No. 1552 Lease. with Council approval of the "Agreement to Lease" the Port will execute the "Assignment" and the City will be in a position to approach DNR for all the Harbor Area 1552 on a 30 year lease. The City and the Port would then enter into a sub-lease arrangement whereby the Port would lease an area east of the proposed pier with the length of the sublease to he concurrent with the City's lease with DNR. ,There would be no restrictions on the use of the sub-leased area except for industrial uses that would be, incompatible with a municipal pier. The sub-lease to the Port would guarentee a 50 foot minimum water access between the tip of the pier and the next Harbor Lease area to the east. Hopefully the City can approach DNR on Friday, March 30, 1978 and discuss getting a letter of commitment from DNR. Manager Whorton also briefly outlined the history of the DNR Harbor Area Lease No. 1552 and explained that with acquisition of an assignment from the port the City would deal directly with the Department of Natural Resources. 414 CITY COUNCIL MEETING March 28, 1978 IV LEGISLATION 2. Cont. After a brief discussion on this matter with Manager Whorton, Councilman Buck moved the Council approve the City entering into a Lease Agreement with the Port of Port Angeles. The motion was seconded by Councilman Hordyk. During discussion on the motion, Manager Whorton explained the "length of the sub-lease" provision with the Port and the rental arrangements. On call for the question, the motion was passed by the Council. I 3. PROPOSED LEASE - OAK STREET PIER During the March 6, 1978 Council meeting the Council authorized staff to enter into negotiations with the Port concerning the Oak Street property for a term of a one year lease on that property for the purpose of processing and handling seafood products. During tonight's meeting, Mayor Haguewood read a portion of a letter from Tom Neal, Manager of the Port of Port Angeles, advising the Council that the Port wishes to withdraw its request to lease the facility at the foot of Oak Street. The Port Commission feels, Mr. Neal stated, that it would be impractical for the Port to act as middle-man in the leasing and sub- leasing of the Oak Street pier because of the withdrawal of interest by one of the potential tenants and the limited period for which the facility would be available. Following a brief discussion between Councilman Buck and Manager Whorton con- cerning"the Port's concern over the one-year lease deadline, the Council spoke with Mr. E. Vail, whose plans to operate a seafood processing facility on the pier have now been complicated by the Ports withdrawal. Mr. vail informed the Council that he has adequate funds to build a processing plant, and wishes to lease the oak Street property from May, when General Construction is scheduled to vacate the pier, to December. I The Council discussed this matter at length with Mr. Vail, Manager Whorton, and Planner Carr. Subjects disucssed included Mr. Vail's requirements, the zoning classification of this area, the type of permit Mr. Vail will need for his operation to be located in this zone, and the possibility of leaving the area vacant in view of the plans for the Municipal Pier. The discussion concluded with Mayor Haguewood suggesting Mr. Vail submit his request in writing to the Council for consideration at the next regular Council meeting. 4. HOD SMALL CITIES BLOCK GRANT PROGRAM Manager Whorton explained to the Council that this program is designed pri- marily for the low and moderate income families, and pointed out that due to the grant deadline, the only project which could be done is rehabilitiation work on the present low-income housing in this area. Councilman Buck then explained the program further, stating that arrangements have been made with Jefferson County to be the lead agency in this program since the applicant must be a general purpose government; clallam County will join on behalf of the Housing Authority which will be doing the re- furbishing work on the housing units, and Community Action will be funding the pre-application. Councilman Buck further stated that the Interlocal Agreements are currently being drafted and will be brought before the Council for adoption if the City decides to support the grant program. Councilman Anderson then moved the Council support Jefferson and Clallam I County in the Block Grant Program. The motion was seconded by Councilman Buck and carried. 5. BLM INFORMAL PUBLIC HEARING The Bureau of Land Management held an informal public hearing on March 8, 1978 in which Manager Whorton and Attorney Walrath presented a statement on potential impacts of an oilport on the Port Angeles area. At tonight's meeting Manager Whorton requested comments and suggestions from the Council on the statement. CITY COUNCIL MEETING March 28, 1978 475 IV LEGISLATION 5. Cont. I Councilman Duncan then requested that the following issues be made known to BLM: that Port Angeles and the Straits of Juan De Fuca be included in any vessel traffic safety and clean-up legislation that will be written; that a map of the Northern Tier proposal be shown at the Council meeting which Mr. Fuller, representing Northern Tier, will be attending; that BLM be asked to consider Hyder, Alaska as an alternate pipeline site; that BLM be questioned as to air quality violations - will Northern Tier be required to shut down its operations and, if not, what action will be required to bring air quality back to normal; will the local mills be required to shut down operations if the air quality is violated; the problems in water supply, waste water, and solid waste disposal which Northern Tier's proposal will bring. Councilman Duncan concluded by stating that the City should miss no opportunity to restate the City's position on the proposed pipeline. 6. CIVIC FIELD PARKING: PURCHASE OF LOTS Manager Whorton briefly explained the city's plans for purchase of six lots located at the corner of Second and Race Streets for parking ar Civic Field. The property in question, presently owned by Mr. Ronald G. King, includes two houses and one apartment building, both of which can be moved to other City lots and resold. The financial terms, Mr. Whorton continued, shall be $95,000 for the lots plus improvements; an initial payment of $40,000 shall be made at the time of closing and the remainder to be paid in four equal annual installments of $13,750 plus interest. I The Council then discussed the purchase of the lots and the moving of the structures presently on them with Manager Whorton and Parks Director Frizzell. During the discussion Mr. Frizzell pointed out that there may be a slight problem in moving the apartment house since the City presently owns no property in a multi-family zone. Manager Whorton also pointed out at this time that no interest rate was discussed with Mr. King, and requested authori- zation to negotiate with Mr. Xing on this matter. Councilman Hordyk then moved the Council purchase the property at Second and Race Streets under the terms outlined' by Mr. Whorton and negotiate with Mr. King on an interest rate. The motion was seconded by Councilman Anderson. During discussion on the motion, the Council was questioned by Mr. Jerry steinman regarding the moving of the apartment house to a multi-family zone. On call for the question the motion was passed by the Council with Council- man Wray voting "NO." V - VII SUSPENDED VIII ADJOURNMENT The meeting adjourned at 9:45 P.M. ,I /;;~~ e-I?vv~ City Clerk ~~"ufj~~ Mayor .... II' , :;: ~~t':cn8ai=~''O '-01'. . -' ______-__ ~ Cl .r:. 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