cbj docks and harbors board · iv. approval of august 18th, 2016 regular board meeting minutes ....

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CBJ DOCKS AND HARBORS BOARD REGULAR MEETING AGENDA For Thursday, October 27th, 2016

I. Call to Order (5:00 p.m. in the CBJ Assembly Chambers) II. Roll (John Bush, Weston Eiler, Bob Janes, David Lowell, Robert Mosher, David Seng, David

Summers, Budd Simpson, and Tom Donek) III. Approval of Agenda

MOTION: TO APPROVE THE AGENDA AS PRESENTED. IV. Approval of September 22nd, 2016 Regular Board Meeting Minutes V. Public Participation on Non-Agenda Items (not to exceed five minutes per person, or twenty

minutes total time). VI. Consent Agenda

A. Public Requests for Consent Agenda Changes B. Board Members Requests for Consent Agenda Changes C. Items for Action

1. An Assembly Resolution in support for full funding of the Alaska Muncipal Harbor Facility Grant RECOMMENDATION: THAT THE ASSEMBLY APPROVE A RESOLUTION IN SUPPORT OF FULL FUNDING ($18,160,055) FOR THE STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2018 STATE CAPITAL BUDGET. 2. An Assembly Resolution in support of proposed changes to Alaska Statutes Chapter 30.30 and 05.25 regarding management and prevention of derelict vessels RECOMMENDATION: THAT THE ASSEMBLY APPROVE A RESOLUTION IN SUPPORT OF PROPOSED CHANGES TO ALASKA STATUTES CHAPTER 30.30 AND 05.25 IMPROVING THE MANAGEMENT AND PREVENTION OF DERELICT VESSELS. 3. A Docks & Harbors Resolution in support of changes to the 2017 National Electrical Code RECOMMENDATION: RESOLUTION IN SUPPORT OF THE STATE OF ALASKA ADOPTING THE FOLLOWING FINE PRINT NOTE TO THE 2017 NATIONAL ELECTRICAL CODE ARTICLE 555.3: “FPN: The 30mA requirement can be applied to all feeder circuits or all branch circuits in lieu of the main overcurrent protection device.

MOTION: TO APPROVE THE CONSENT AGENDA AS PRESENTED.

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CBJ DOCKS AND HARBORS BOARD REGULAR MEETING AGENDA (CONTINUED) For Thursday, October 27th, 2016

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VII. Unfinished Business - None VIII. New Business

1. An Assembly Resolution in support of the addition of port and harbor employees to be covered under Alaska Statute AS 12.55.135. Presentation by the Port Director Board Questions Public Comment Board Discussion/Action MOTION: THAT THE ASSEMBLY APPROVE A RESOLUTION IN SUPPORT OF THE ADDITION OF PORT AND HARBOR EMPLOYEES TO THE LIST OF EMPLOYEES COVERED BY AS 12.55.135. 2. Removal of the Marine Park Lightering Float Presentation by the Port Director Board Questions Public Comment Board Discussion/Action MOTION: AS A PRECAUTION TO FACILITATE THE SAFETY OF WORKING SEAPLANES, THE EXISTING MARINE PARK LIGHTERING FLOAT SHALL BE REMOVED PRIOR TO THE COMMENCEMENT OF THE 2017 CRUISE SHIP SEASON. 3. Alaska Glacier Seafood (AGS) – Lease Amendment Presentation by the Port Director Board Questions Public Comment Board Discussion/Action MOTION: TO APPROVE A LEASE AMENDMENT WITH ALASKA GLACIER SEAFOOD TO ALLOW INGRESS AND EGRESS ACROSS THE CBJ AUKE BAY LOADING FACILITY.

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4. Angoon Trading Company, Inc – New Lease ATS 1670, Tract A Presentation by the Port Director Board Questions Public Comment Board Discussion/Action MOTION: TO RECOMMEND APPROVAL BY THE ASSEMBLY FOR A 1.46 ACRE LEASE WITH ANGOON TRADING COMPANY FOR ATS 1670 (Track A) AT A RATE OF $6,359.80 PER YEAR.

IX. Items for Information/Discussion 1. Resident Liveaboard Regulations Presentation by the Harbormaster Board Discussion/Public Comment 2. 2004 Long Range Waterfront Plan Review

Presentation by Port Engineer Board Discussion/Public Comment 3. Archipelago Property Acquisition

Presentation by Port Director Board Discussion/Public Comment 4. Docks & Harbors Customer Satisfaction Survey Presentation by Port Director Board Discussion/Public Comment

X. Committee and Member Reports 1. Harbor Fee Review Committee Meeting- Wednesday, October 5th, 2016 2. Operations/Planning Committee Meeting- Wednesday, October 19th, 2016 3. Finance Committee Meeting- Thursday, October 20th, 2016 4. Docks Fee Review Committee Meeting- Thursday, October 20th, 2016 5. Member Reports

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XI. Port Engineer’s Report XII. Harbormaster’s Report XIII. Port Director’s Report XIV. Assembly Liaison Report XV. Board Administrative Matters

a. Harbor Fee Review Committee Meeting- Wednesday, November 2nd, 2016 at 12:00pm

b. Ops/Planning Committee Meeting – Wednesday, November 9th, 2016 at 5:00pm

c. Finance Committee Meeting – Thursday, November 10th, 2016 at 5:00pm CANCELLED

e. Docks Fee Review Committee Meeting- Thursday, November 10th, 2016 at 5:00pm

d. Board Meeting – Thursday, November 17th, 2016 at 5:00pm XVI. Executive Session

a. For the purpose of property acquisition discussion XVII. Adjournment

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CBJ Docks and Harbors Board REGULAR BOARD MEETING MINUTES For Thursday, September 22nd, 2016

I. Call to Order.

Mr. Donek called the Regular Board Meeting to order at 5:03 p.m. in the CBJ Assembly Chambers.

II. Roll Call.

The following members were present: Weston Eiler, Bob Janes, David Lowell, Robert Mosher, David Seng, David Summers, Budd Simpson, and Tom Donek.

Absent: John Bush

Also present were the following: Carl Uchytil – Port Director, David Borg- Harbormaster, and Matthew Creswell – Senior Harbor Officer

III. Approval of Agenda – No Changes

MOTION By MR. SIMPSON: TO APPROVE THE AGENDA AS PRESENTED AND ASK FOR UNANIMOUS CONSENT.

Motion passed with no objection

IV. Approval of August 18th, 2016 Regular Board Meeting Minutes.

Hearing no objection, the August 18th, 2016 Regular Board Meeting Minutes were approved as presented.

V. Public Participation on Non-Agenda Items

John Covington, Juneau, AK

Mr. Covington sited a Russian Proverb that said “a man’s eye’s should be torn out if he can only see the past”. He said Joseph Stalin said “men must be bloodied in combat therefore their true character shall arise out of the ashes”. He said “the reason he is here is he tried to reason with you guys and you laughed at me”. I don’t think there is a damn thing funny about what is going on at the Harbors. How you people are acting like bullies and dictators. You have the regulations but they are not applied the same to everybody. You pick and choose. Show favoritism to one and be a bully to another by chasing him out because he has problems. If you are going to apply the law, apply it to everyone fairly. I’ve tried to resolve my issues with both the Harbormaster Dave and the Port Director Carl. They advised me to come here and bid my complaints. Then they both laughed at me. Why did they laugh at me? Because they knew it would be a waste of time and effort, or you Board staff really don’t desire to hear any complaints. You aren’t going to make any changes to the ways you have already agreed to. You just want to sit back and draw a government payroll check. Them laughing at me told me the truth more than any words could have been spoken. For the general public to think that they can come before you people is a deception and you Board staff simply laugh at the public. That’s why both the Port Director and the Harbormaster laughed at me. They’re a reflection of you. This is why I am hiring a lawyer to take you before a court of law to sue you for discrimination and harassment. Your actions speak it

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would be a waste of time to reason with you outside the court of law. You people live in the past. You don’t desire to make changes that will bring about prosperity for everybody. All you are interested in is receiving your pay check on Friday. You people are worthless. The only thing you are good for is destroying everybody else’s life. You act this way because you think that you are securing your job position. Your arrogance has brought destruction on everybody connected to the Harbors. You love to oppress, therefore, I shall oppress you in court. You hate to show mercy when it was in your power to do good, therefore, I shall not show mercy upon you when I bring you to a court of law. I’m instructing my lawyer to get the ACLU involved in this court case. Because of your wickedness toward myself, you have caused me to lose a boat that is valued at $100,000. Pain and suffering I have endured shall be rewarded in court. If you want to settle this outside the court of law, than have your lawyer contact me. If not, then continue to boast with your wickedness and almighty god shall pass judgement on you. I had to go to prayer, I am a man of god, I prayed to the lord god Jesus everyday. I had to go to prayer because I was so stinking upset at the way I was treated. Disrespectful, arrogance, laughing at me. I came before you trying to solve a problem and you laugh at me. There ain’t nothing funny, why are these people here. If you don’t have competence to do your job, why are you here? A lot of you really are here just to get a paycheck. You really don’t care. But you know what, the lord god Jesus listened to my complaint and guess what guys, he didn’t laugh at me. He told me to try to reason with you. You have the boats in three different categories, and it’s not according to the law the statutes you have written down because I have studied it. It is according to how you feel about a certain individual. Them boats over there, well they have to go do a figure eight three times a year, these house boat’s over here, we don’t really care. There is a man named Jack Adams that has a regular boat with no engines and you told him he doesn’t have to have engines, and he doesn’t have to go do a figure eight. Why, because he has a little boy? So what. The Statues in these laws was set down for everybody to be fair. But you don’t want to apply them. You act like a bunch of dictator bullies. I’m not talking to you guys (the Board), I’m talking to these two I’ve already dealt with (pointed to the Port Director and Harbormaster). Shame on you. You are grown men. You need to act like it. God expects better of us. He put you in leadership to lead the community.

Mr. Donek said Mr. Covington’s 5 minutes are up.

William Heumann, Juneau, AK

He said he owns the building called the People’s Wharf at 432 S. Franklin St. on the waterside next to the visitor center and behind the Cruise Ship Terminal. He said he is interested in leasing the water land behind his building. It is an area encompassed by the Docks, but undeveloped. The portion he is interest in is directly behind his building and approximately 2,000 sq/ft. He said he would like to develop it to work in conjunction with his building. One thought was for restaurant seating in conjunction with the space behind his building. One of the reasons for doing this is for more activity at the end of his building but also on the seawalk between his building and the library. The reason for that is there is very little foot traffic based on his observations on that portion of the seawalk. The portion of the seawalk that goes from the Princess dock to the tram is very well used but not the portion between his building and the library. One of the primary purpose of constructing the seawalk was to reduce congestion on Franklin Street because it was thought of as a dangerous situation. If it hasn’t been successful up to this point, he said he is taking steps on his

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part to develop that portion so it would draw more interest in that area of the dock and would be the first of development between his building and the Library. He said he just wanted to introduce this concept to give some thought to it and he said he will continue to work with staff to applying for this area.

VI. Special Order of Business

Mr. Uchytil said he received a nice letter from the Territorial Sportsmen’s Golden North Salmon Derby Committee commending Docks & Harbors staff during the Salmon Derby and for allowing the Statter Harbor launch ramp to be opened. The letter is in the packet.

VII. Consent Agenda

A. Public Requests for Consent Agenda Changes - None B. Board Members Requests for Consent Agenda Changes – None C. Items for Action - None

1. Shayne Thompson (Angoon Trading Co) Lease

RECOMMENDATION: TO APPROVE A NEW TIDELAND LEASE ARRANGEMENT WITH ANGOON TRADING COMPANY, INC. FOR ADL 2852 AND DIRECT THE DRAFTING OF THE LEASE LANGUAGE FOR DOCKS & HARBORS BOARD APPROVAL.

2. Cruise Ship Berth Contract Administration and Inspection Services Proposal-PND Engineers RECOMMENDATION: TO APPROVE A TIME & EXPENSE CONTRACT WITH PND ENGINEERS FOR CONTRACT ADMINISTRATION & INSPECTION SERVICES IN THE AMOUNT OF $995,496 FOR THE FINAL PHASE OF THE NEW CRUISE SHIP DOCKS PROJECT. 3. Special Moorage Rate Consideration – Non-Motorized AGS Barge at Statter Harbor RECOMMENDATION: TO APPROVE A SPECIAL FEE THROUGH MAY 1, 2017 FOR ALASKA GLACIER SEAFOODS TO MOOR A NON-MOTORIZED BARGE ON THE STATTER HARBOR BREAKWATER IN ACCORDANCE 05 CBJAC 15.095 AND DIRECT THE PORT DIRECTOR TO ENSURE PROPER LIABILITY COVERAGE IS MET. MOTION By MR. SIMPSON: MOVE TO APPROVE THE CONSENT AGENDA AS PRESENTED AND ASK UNANIMOUS CONSENT.

Motion passed with no objection.

VIII. Unfinished Business - None

IX. New Business

1. Aurora Harbor Phase II 35% Review Mr. Uchytil said Docks & Harbors received a $2M State Municipal Harbor Grant, and we have $2M in our fund balance that has been set aside for this phase of Aurora Harbor. The $4M will buy us three main floats, E, F, and G, which are the floats that have the boat shelters in Aurora. The project itself will mimic what phase one replaced, electrical, water lines, and fire protection in a

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dry stand pipe system. We will not pursue cable TV or hardwired telephone. This will be a relatively easy project with the exception of dealing with the boat shelters. The boat shelters are privately owned real property. The question is how to move the shelters to guarantee the project is completed on time, with the least amount of angst to the contractor, to the purchasing officer, and shelter owners. Docks & Harbor staff met with PND consultant engineers and developed a plan on how to proceed with demolition and construction of the project. Mr. Uchytil showed the existing layout of the boat shelters and explained that currently the floats have different number of boat shelters. With the new construction, the floats will all be standardized and have the same number of boat shelters making them uniform. Mr. Uchytil also described the process of the demolition. In an attempt to try to make this as easy as possible for all involved, staff is contemplating to invite all the boat shelter owners to get together in April at the Yacht club for an EXPO. This will be the opportunity to explain the process for moving the boat shelters but also bring local contractors, marine contractors, divers, electricians, and electrical engineers to try to encourage boat shelter owners to take this time to do everything they can to harden their boat shelter so that there isn’t damage when the contractor moves them. Staff knows there are some boat shelters that have been maintained better than others. Facilitating bringing everyone together we hope will help everyone. Pictures will be taken before the contractor moves them so there is a record of the condition of the boat shelter before the move and ensuring reasonable care and handling is carried out in this project. He said he is asking the Board to approve the 35% design and proceed to the 65% design.

Board Questions

Mr. Mosher asked what will happen if a boat shelter falls apart in the move process?

Mr. Uchytil said there will be a line item in the contract for demolition services. This will allow for the contractor to bring a salvage company in to do emergency repairs to be able to continue the move of a boat shelter.

Mr. Mosher asked if the boat shelters are insured?

Mr. Donek said his is.

Mr. Uchytil said some shelter owners do have insurance and some don’t. We are in the process of developing new regulations for boat shelter owners and we will have it in place when the move happens. The three things that he is looking at is, National Electrical Code (NEC) requirement and the shelter owners must meet those codes, Insurance, and insure that the Habormaster has access to the boat shelters. Docks & Harbors is at risk as owners of the facility if boat shelter owners are storing large quantities of flammable materials. The insurance clause is also something staff is working on for boat owners. The requirement is to have insurance but it doesn’t specify how much or type. We hope to have the plans and specs bidding in January with an award in March so we can do the EXPO in April.

Mr. Eiler asked if the Boat Shelters have been moved since their construction?

Mr. Donek said he saw one move. He said he is trying to find someone to take his out of the water so he can rehab it on dry land as part of this operation. They weren’t built in place. Mr. Donek said he thought they were built in Lemon Creek and put in the water and floated to their location.

Mr. Mosher commented that they should be mobile in theory.

Mr. Uchytil said the plan is to start this project just after the Salmon Derby next year and finished by January 2018. The boats will not be able to remain in the boat shelter. There will be space found for them in another space in the harbor.

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Public Comment - None Board Discussion/Action

Mr. Donek suggested to have a meeting earlier than April to show the shelter owners what the plan is now, and again in the spring.

Mr. Uchytil said staff has emails for all the shelter owners. All the shelter owners should have received an invite to these two meetings, and we had only two owners show up. Mr. Uchytil said if we do have an earlier meeting, I will show what I showed here tonight.

Mr. Donek said it is worth our time to do the extra meeting. Mr. Donek said as a boat shelter owner, he would recommend starting earlier than after the Salmon Derby. The biggest hazard for the boat shelters is snow load. The shelters will need to be back in place by November 1st. Mr. Uchytil said the concern he has with the moving of the boat shelters is that it is going to affect more than just the shelter owners. He is unsure if there will be enough space to move boats around until after the Salmon Derby. There are a lot of live-aboards that will have to move also.

MOTION By MR.SIMPSON: MOVE TO APPROVE THE AURORA HARBOR (PHASE II) 35% DESIGN DOCUMENT AND PROCEED TO THE 65% DESIGN EFFORT AND ASK UNANIMOUS CONSENT.

Mr. Donek Recused himself.

Motion passed with no objection X. Items for Information/Discussion –

1. DBA and the Main Street Program

Presentation by Evelyn Russo with the Downtown Business Association and also a principle at NorthWind Architects, and Dana Herndon Juneau Economic Development Council.

Ms. Russo said downtown Juneau is on the verge of something great. We are here because two or three years ago, when the Juneau Economic Plan was completed, there was several initiatives in that plan that had to do with downtown. The Downtown Business Association was asked to take the lead in implementing these initiatives. We are a volunteer nine member Board, and we tried to figure out how to do implement the initiatives. Some of the initiatives had to do with revitalization of downtown, increased housing, and things along these lines. When trying to figure out how to do this, we heard about a program called Mainstreet America, which has been successful at revitalizing downtowns across the country. The nine member Board paid for Ms. Russo, Ms. Herndon, and Mr. Romeo to go to a Mainstreet America convention in May. They felt it was a good fit and decided to move forward with the program.

Ms. Herndon said Mainstreet is an economic development program. It’s backed by over 35 years of success in over 2,000 downtowns across the United States. The Mainstreet program is a four point approach, it looks at all the different aspects of a community, brings those together to develop strategies, and plans on how to move forward. The points they take into consideration are design

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(infrastructure), promotion (marketing & events), Economic Vitality (How to promote and increase business in the downtown area), and Organization (is what the DBA would be within this program).

Ms. Russo said what makes Mainstreet unique is that it is not a plan that is trying to fix every single problem. It looks at a specific community, unique features, physical, geographical, economics, and comes up with a transformation strategy. Then they try to find projects across the four points that Ms. Herndon talked about earlier. Some of the projects may be large and some may be small. Ms Russo gave an example of a transformation strategy with a town in South Carolina. At one time, this town’s mainstreet had storefronts with people living upstairs and over the years the people moved away from downtown. When the people moved away from downtown, the stores became office space and the rest became vacant. Their strategy was to get more people to live downtown again. They did some simple things to get people back downtown. They still had a lot of people working downtown, a University, and a Hospital close to downtown. They got all the stores to stay open late at night to get people to shop downtown. They took a dilapidated building and renovated into a hotel to get more people downtown. They started a program that had events after five where they offered lectures, concerts, and a downtown pecan festival. Their strategy was based around the idea of getting people to live downtown. The idea is if you do everything that is strategically coordinated and not cherry picked from a planning document, it will become a tipping point of vibrancy that will get other people to want to fix up their buildings and invest in downtown. We are here specifically because Docks & Harbors has invested a lot in downtown with the 16B and the Seawalk. The waterfront is very important to the character of downtown. Our transformational strategy may have something to do with waterfronts, or something along those lines with the maritime history.

Ms. Herndon talked about some of Mainstreet’s successes. In the past 35 years, over $65B has been reinvested back into the communities that have used the Mainstreet program. Over 126,000 new businesses were started in those communities and over 260,000 buildings were rehabilitated.

Ms. Russo said the Board has engaged with Mainstreet USA and they are sending one of their facilitators to work with us. The facilitator is already starting to work on a market study for Juneau and looking at surveys. She will be in Juneau on November 1st and 2nd to meet with the Community. On November 1st there will be a large community gathering. Earlier in the day she will also be meeting with stakeholders from downtown and some of you may want to participate to help figure out the transformation strategy for Juneau as well as figure out what the possible projects are that we could implement across the points that were discussed earlier. It is important to note that this will not work unless there is a partnership between the government and private business. CBJ is paying for half of the cost to have the facilitator come to Juneau. The DBA is funding the other half. This is meant to be a quick process. It is a 90 day timeline from getting this process started to having some implementable projects that we can work on. Some may be quick and easy, but others may take time. We are here today to ask Docks & Harbors to participate if you can. This will only work if we get all stakeholders across the community to participate to find the right strategy that will work for us. We want all voices to be heard.

Board Discussion/Public Comment –

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CBJ Docks and Harbors Board REGULAR BOARD MEETING MINUTES For Thursday, September 22nd, 2016 Mr. Janes asked about the November meetings?

Ms. Herndon said Ms. Russo will be having a meeting with CBJ officials during the day and the Community meeting is at night on November 1st. November 2nd will be making a work plan from the discussions on November 1st. It will also include setting up certain goals and timelines so we can have some things to show early on in this process but also have longer term strategies to work towards.

2. Removal of Marine Park Lightering Float

Mr. Uchytil said on page 40 in the packet is a letter from Wings Airways with a concern about the Marine Park Lightering Float. They believe with the positioning of the new Alaska Steamship Dock, it is going to adversely impact the safety of the seaplanes coming into their fuel float. Wing’s is requesting Docks & Harbors remove the lightering float. Mr. Uchytil said he never had any intentions of removing the lightering float until such improvements were made at Marine Park or the extension of the seawalk precipitated its removal. This is a new request. There will be some community members that will not look fondly on this request if it is to move forward. Mr. Uchytil said his recommendation is to remove it. With the Aviation community coming to a meeting and staking their professional expertise that it is unsafe, it is hard to tell them to reconsider. Mr. Uchytil said he did sit with Ms. Johnson and recommended changing the angle, and they still feel it will impinge on the safety of their aircraft. Last night at the OPS/Planning meeting they recommended to bring the request back to the OPS/Planning next month and be an action item to remove it or not. Mr. Uchytil did talk to the Parks & Rec director and he said he would defer all judgment to Docks & Harbors.

Board Discussion/Public Comments- None

Mr. Eiler asked how was this thought out with the 16B construction?

Mr. Uchtyil said Wings had always thought that the construction with 16B would coincide with the extension of the seawalk. The seawalk extension in front of Merchants Wharf was challenging so now they are working from outward in with no definitive schedule for when the new seawalk will be planned and executed in front of Merchants Wharf.

Mr. Eiler asked if staff has a cost estimate for removal of the lightering float?

Mr. Uchytil said Manson is close to that area so it may not be very costly.

Mr. Eiler asked what other companies are using that float?

Mr. Uchytil said the plan was when the seawalk was installed, everything would move down. Wings would move down along Merchants Wharf to displace the area that the high end yachts tie up now. That was the big picture plan for when the seawalk was constructed. The expectation was the expenditure to accommodate that would be rolled into the seawalk extension. I have met with the owner of Adventure Bound and informed him of the request from Wings Airways and told him there are no guarantees this request will happen but it was incumbent of me to take it to the Board and say this is a safety concern. The work around will be the new Port Field Office(PFO) Lightering Float, and this would be the logical place for Adventure Bound to go. The owner of

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Adventure Bound said this will add a 1,000’ to his customers. Zipline uses the Marine Park Lightering Float randomly but consideration could be to move them also to the PFO Lightering Float.

Mr. Eiler asked if Wings position was that the entire float plane dock as currently configured is unusable with the new berth or just the part closest to Marine Park.

Mr. Uchytil said they run five planes, he is unsure if the entire facility is unusable. He said he has not asked that question.

Mr. Donek said this will come back to OPS/Planning next month.

2. Fee Review Meeting Schedule

Mr. Uchytil asked when the Board wants to start meeting to work on the next segments of the comprehensive fee reviews. He recommended to determine a good meeting time to start this process again.

Board Discussion/Public Comments

Mr. Donek said the Docks Fee Review Chair is Mr. Bush, committee members are Mr. Seng, Mr. Summers, and Mr. Eiler. The Harbors Fee Review Chair is Mr. Simpson, committee members are Mr. Janes, Mr. Lowell, and Mr. Mosher.

Mr. Donek recommended to start the meetings in October.

Mr. Simpson said that was the intent to start the meeting again in October.

Mr. Donek said the previous meeting times were at noon on Wednesdays for the Harbor Fee Reviews and the Docks Fee Review was following the Finance Meetings. Mr. Donek directed Mr. Uchytil to set up the meetings for October.

Mr. Uchytil verified that the Board wants to meet once a month for Harbors Fee Review at Noon on Wednesdays. He asked when in the month did the members want to meet on a Wednesday.

Mr. Simpson recommended to meet on the first Wednesday of the month at noon.

Mr. Uchytil asked when to set up the Docks Fee Review? This meeting used to follow the Finance meeting, but we haven’t been having those meetings. This would be a good month to have the Finance Meeting to go over the FY16 budget final numbers and have the Docks Fee Review after that.

Mr. Donek asked if Mr. Eiler was good with having a Finance Meeting in October?

Mr. Eiler said yes.

Mr. Uchytil confirmed that October 5th will be the Harbor Fee Review and October 20th after the Finance Meeting will be the Docks Fee Review. He said the Docks Fee Review will start with the loading zone fees and the Harbor Fee Review will start with the live-aboard fees.

XI. Committee and Member Reports

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1. Operations/Planning Committee Meeting- Wednesday, September 21st, 2016 Mr. Simpson reported all that was discussed at the OPS/Planning meeting yesterday was discussed here tonight.

2. Finance Committee Meeting- Thursday, September 22nd - Cancelled

3. Member Reports – None

XII. Port Engineers Report- Mr. Gillette’s report was in the packet

Mr. Gillette was absent.

Mr. Uchytil said there is continued progress on the Statter Harbor launch ramp. The proposed final completion date to be November 1st. Staff will hold the contractor responsible for liquidated damages. Docks & Harbors position is the contracted completion date was July 18th and substantial completion was not achieved until later in September. There is signification work left, the covered pavilion, the kiosk, and the guard rail. Staff is holding back the final payment until everything is complete. Up to this point staff is pleased with the work that has been accomplished. The trees along the road have been relocated.

Trucano is mobilized and working on the floats at Douglas Harbor.

Staff is still working on an update on the land use master plan from bridge park to Norway point. There will be a public meeting regarding the update.

Manson mobilized yesterday with a request for early entry, however as a result staff needed to relocate two cruise ship docking locations. The dockings that were going to be on the CT dock were moved to the Franklin Dock. There are some Waterfront Vendor Permit owners that are not happy with this. Mr. Uchytil said he will contact them tomorrow. Essentially staff is trying to give Manson every opportunity to complete the project on time or even ahead of time.

Mr. Simpson asked why Seawalk and Whale Park is listed on Docks & Harbor Port Engineers Report. It is my impression this is not Docks & Harbors project.

Mr. Uchytil said he is unsure why it is on this list.

Mr. Summers wanted to make sure Docks & Harbors is not cavalier about moving the cruise ship locations. For a small business that has barely reached profitability toward the end of the season having a cruise ship change could have a significant impact on a small business. It might seem this is a part of the great good and be a windfall down the road, it doesn’t pay the light bill for a small business. It is also important to recognize that when a cruise ship is moved from a CBJ dock to a private dock, we don’t get the revenue for that docking.

Mr. Uchytil said we are working on consideration from Manson for asking for the relocation of the cruise ships.

XIII. Harbormaster’s Report

Mr. Borg reported;

• Staff is working on the damage to the north end of Aurora Harbor from the F/V Norgale. Docks & Harbors received an estimate for repairs from PND for $80,000. At this point,

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we are going to repair some of the walers to a safe condition. F/V Norgale has left the community.

• The Senior Harbor Officer, Matt Creswell and himself went to an innovation academy last week sponsored by CBJ. They were provided with tools to look at their operations or how they are doing business, and ways to improve and capitalize on other cities that have done that in different areas. One area he is looking at is how staff registers boats. The current process can take up to 30 minutes to get a boat registered, and there may be a better way for this process. Another area is online moorage payments. Mr. Creswell is also going to look at the Port Field Office operations to try to improve those operations.

• The seasonal’s last day is October 2nd. There will be a final barbecue for the staff at noon on September 30th. We had a great season with Mr. Creswell filling the Senior Harbor Officer position.

• The Wilderness Explorer will utilize the PFO float over the winter. This will be generating revenue over the winter where we wouldn’t normally use that space. They have indicated they plan on using this space in future winters as well.

• I mentioned at the last meeting that I have issued letters to some vessel owners they need to demonstrate their vessel runs. A couple of the letters that went out were to vessel owners that their vessels have not ran as far back as our records go. The individual that was here today received one of those letters and that was why he was here. The Port Director and myself did have a meeting with him several weeks ago, however, the meeting did not go as he said.

• Staff is also getting the winter equipment ready to go.

Mr. Eiler asked how many boats Mr. Covington owns?

Mr. Borg said he has three boats. His vessel the Nicole was one that hadn’t run in a long time. I am going systematically through about 39 vessels that have been identified as not moving for many years. Part of the problem with these vessels is there is a ton of growth on the bottom and the boats don’t maneuver when they have all that growth.

Mr. Eiler asked why his vessel was repossessed?

Mr. Borg said his boat was not repossessed but issued a letter referencing title 85 that states vessels need to show they are capable of maneuvering.

Mr. Eiler said he likes the sound of what came out of the innovation summit, he said he heard at an earlier board meeting that seasonal staff were attending customer service training. Maybe in the future we could have a presentation from staff with a dash board in terms of where we are now and where we would like to go directionally. Whether it is payments or staff training? Where are we at currently in terms of customer service?

XIV. Port Director’s Report

Mr. Uchytil reported;

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• Addressing Mr. Covington’s complaint under non-agenda items. At no time was he treated with disrespect. Nobody laughed at him. He left the meeting indicating he intended to sell his boat. That was the last conversation the Harbormaster and I had with him. Making sure a vessel can operate and maneuver is part of cleaning up the Harbor. His boat hasn’t moved since 2010. We have to start somewhere and we are trying to systematically send a letter to vessel owners reminding them that their vessel needs to run to be able to qualify to stay in the Harbor. This is the direction we are trying to go and this is going to be hard. I know Mr. Covington contacted the Empire. The requirement is not that hard and we have harbors to maintain for moorage for vessels of transportation and not wet storage. The Harbors has all these unmovable vessels from decades of not enforcing the regulation. We are staying the course to clean up the harbors and the requirement to stay in the harbor is that a vessel is operational.

• Statter Harbor Phase III update is we are pursuing the use of head tax for this phase. We have been working diligently to convince the City Attorney that it is an appropriate use. The Port Director believes he has proven that there is an impact to the locals and fishermen in Statter Harbor from the 60,000 charter visitors. Staff is moving forward with collecting soil samples for the dredging for this phase. This will move to the Assembly next to reallocate $4.6M from the FY17 16B CIP project to the Statter Harbor Phase III project.

• Next week I will be attending the AAHPA in Dutch Harbor and then go to the ASCE conference in Portland.

• Mr. Uchytil said he was at the Chamber Meeting today and the candidates were asked about the empowered Boards. One candidate remarked that the Docks & Harbors Board needed to be reined in. Mr. Uchytil said he asked for further information for that comment and the candidate said he has heard from commercial fisherman that the issue with Statter Harbor is the whale watching boats and the fees have gone up 250%. This just shows that there are still elements in the community that believe we are not a transparent organization that really is looking out for the best interests of the community.

• There was a nice event today to recognize the one millionth cruise ship visitor to Juneau.

Mr. Eiler recommended to talk to other members of the AAHPA to see if any other Harbors are dealing with boat shelters. He also asked if there has been any development regarding the Lumberman?

Mr. Uchytil said he did get an email saying he intended to relocate off CBJ property. He will take him for his word and assume he is pursuing other options. Steve Hamilton is the other owner of the anchored out vessels and he has indicated he is working on moving and will need until April to remove his flotilla and staff will work with him. Mr. Uchytil said we need to hold our patrons to a higher standard than what we have. People want to believe this is Alaska in the 1950’s. Things change and it is not okay to pump sewage directly in the water. An Example, we have taken water samples on two occasions in our harbors and in Aurora Harbor one of the fecal coliform test was 700 bacteria per one hundred milliliters of water which is seven times higher than what is allowed for swimming at beaches. Addressing the sanitation issues in the Harbor is part of moving toward

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the clean harbor initiative. Docks & Harbors wants to have a safe secure facility with recycling capabilities, and people using the harbors for their intended purposes.

Mr. Mosher commended staff for following through with this uncomfortable effort and he supports this.

Mr. Donek said the Lumberman was on the OPS/Planning agenda last night and he didn’t show up. He has indicated he is going to move so there is no action needed.

Mr. Uchytil said addressing Mr. Heuman’s request to move forward with the lease property outside his building. There is some legal issues that need to be followed with proper notification. Next month I will be asking the Board if they would like to consider the open water space outboard of the People’s Wharf if we want to make that available for retail opportunities. He asked the Board to walk that area and decide if that is what they would like to do with this space.

Mr. Janes asked if this is the direction Docks & Harbors wants to go, and will the deck over be paid by the lessee based on our standards?

Mr. Uchytil said if the Board agreed collectively this could be opened up. Next there would be some kind of public offering of this property. Mr. Heuman believes he should have right of first refusal for this land under accretion rights. Mr. Uchytil said he doesn’t believe Mr. Heuman has accretion rights. There would be a public offering in a RFP or sealed bid and the lessee would build to CBJ standards. Also, staff has been asking for Marine Passenger Fees every year to build bathrooms in this area. Docks & Harbors plumbed the visitor center with plumbing that would accommodate for a bathroom. If the Board were to open this up for the public to bid on, there could be a requirement for the selected lessee to provide bathrooms. This would be similar to the arrangements with the Mt. Roberts Tram allowing public restrooms for the visitors.

XV. Assembly Liaison Report - None

XVI. Board Administrative Matters

Harbor Fee Review – Wednesday October 5th at noon

a. Ops/Planning Committee Meeting – Wednesday, October 19th, 2016 at 5:00pm

b. Finance Committee Meeting –Thursday, October 20th, 2016 at 5:00pm Docks Fee Review – Thursday October 20th following the Finance Committee Meeting.

c. Board Meeting – Thursday, October 27th, 2016 at 5:00pm

XVII. Executive Session

Discussion of Personnel Matters relating to the Port Director’s Evaluation

MOTION By MR. SUMMERS: TO ENTER INTO EXECUTIVE SESSION TO DISCUSS PERSONNEL MATTERS RELATING TO THE PORT DIRECTOR’S EVALUATION AT 6:40 P.M. AND ASK UNANIMOUS CONSENT. The Board returned from Executive Session at 6:58 p.m.

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CBJ Docks and Harbors Board REGULAR BOARD MEETING MINUTES For Thursday, September 22nd, 2016 XVIII. Adjournment - The regular Board Meeting adjourned at 6:58 p.m.

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A RESOLUTION IN SUPPORT OF FULL FUNDING ($18,160,055) FOR THE STATE

OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2018

STATE CAPITAL BUDGET.

Whereas, the Assembly of the City & Borough of Juneau recognizes the majority of the public

boat harbors in Alaska where constructed by the State during the 1960s and 1970s; and

Whereas, these harbor facilities represent critical transportation links and are the transportation

hubs for waterfront commerce and economic development in Alaskan coastal communities; and

Whereas, these harbor facilities are ports of refuge and areas for protection for ocean-going

vessels and fishermen throughout the State of Alaska, especially in coastal Alaskan

communities; and

Whereas, the State of Alaska over the past nearly 30 years has transferred ownership of most of

these State owned harbors, many of which were at or near the end of their service life at the time

of transfer, to local municipalities; and

Whereas, the municipalities took over this important responsibility even though they knew that

these same harbor facilities were in poor condition at the time of transfer due to the state’s failure

to keep up with deferred maintenance; and

Whereas, consequently, when local municipal harbormasters formulated their annual harbor

facility budgets, they inherited a major financial burden that their local municipal governments

could not afford; and

Whereas, in response to this financial burden, the Governor and the Alaska Legislature passed

legislation in 2006, supported by the Alaska Association of Harbormasters and Port

Administrators, to create the Municipal Harbor Facility Grant program, AS 29.60.800; and

Whereas, the Assembly of the City & Borough of Juneau, is pleased with the Department of

Transportation and Public Facilities administrative process to review, score and rank applicants

to the Municipal Harbor Facility Grant Program, since state funds may be limited; and

Whereas, for each harbor facility grant application, these municipalities have committed to

invest 100% of the design and permitting costs and 50% of the construction cost; and

Whereas, the municipalities of the City of Kake, the City of Ketchikan, the City and Borough of

Sitka, the Municipality of Skagway, the City of Valdez, and the City and Borough of Wrangell have

offered to contribute $18,160,055 in local match funding for FY2018 towards seven harbor projects

of significant importance locally as required in the Harbor Facility Grant Program; and

Whereas, completion of these harbor facility projects is all dependent on the 50% match from

the State of Alaska’s Municipal Harbor Facility Grant Program; and

Whereas, during the last ten years the Municipal Harbor Facility Grant Program has only been

fully funded twice; and

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Whereas, during the last ten years the backlog of projects necessary to repair and replace these

former State owned harbors has increased to over $100,000,000.

Now therefore be it resolved that the Assembly of the City & Borough of Juneau urges full

funding in the amount of $18,160,055 by the Governor and the Alaska Legislature for the State of

Alaska’s Municipal Harbor Facility Grant Program in the FY 2018 State Capital Budget in order

to ensure enhanced safety and economic prosperity among Alaskan coastal communities.

Passed and approved by a duly constituted quorum of the Assembly of the City & Borough of

Juneau on this 28th day of November, 2016.

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A RESOLUTION IN SUPPORT OF PROPOSED CHANGES TO ALASKA STATUTES

CHAPTER 30.30 AND 05.25 IMPROVING THE MANAGEMENT AND PREVENTION

OF DERELICT VESSELS.

Whereas, hundreds of derelict vessels currently litter Alaska’s coastline and harbors and these

numbers will increase every year unless action is taken to address aging fleets and changing

commercial fisheries; and

Whereas, in the past year alone there have been numerous derelict vessel situations that have

cost the state, municipalities, and the federal government considerable expense, including two

ex-Navy tugs in Adak, abandoned barges in Steamboat Slough near Bethel, and the tug

Challenger that sunk off Juneau; and

Whereas, the Assembly of the City & Borough of Juneau recognizes the widespread costs and

the environmental and navigational risks for both municipalities and the state associated with

derelict vessels; and

Whereas, neighboring states have dramatically strengthened their derelict vessel prevention laws

in the past five years to better prevent, track and manage derelict vessels, including raising fees

to support state management of derelict vessels and requiring vessel insurance; and

Whereas, in 1990 the Alaska legislature passed a resolution acknowledging the need to better

understand and address the existing and growing problem of derelict vessels around the state;

and

Whereas, the State of Alaska has outdated statutes regarding derelict vessels which lack the

ability to track vessel owners, agency enforcement authority, statewide coordination of response,

funding or vessel insurance requirements; and

Whereas, in 2013 the Alaska Association of Harbormasters and Port Administrators supported

the creation of the ad-hoc derelict vessel task force which includes representatives from state and

federal agencies as well as the Alaska Association of Harbormasters and Port Administrators,

regional tribal representatives, federal and state legislative offices, and private industry; and

Whereas, over nine full-day meetings, the task force developed thoughtful, robust and

meaningful proposed changes that will help all stakeholders around the state, including harbor

facilities, better address and prevent derelict vessels; and

Whereas, this will help our members protect harbor infrastructure, keep valuable moorage space

in our harbors available, and will prevent unsustainable economic, environmental and

navigational hazards; and

Whereas, the proposed changes will improve communication and coordination between

Alaska’s harbors and state and federal agencies, directly leading to decreased costs associated

with managing derelict vessels.

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Now therefore be it resolved that Assembly of the City & Borough of Juneau fully supports the

passage by the state legislature of all proposed revisions in Alaska Statutes 30.30 and 05.25.



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Port of Juneau

City & Borough of Juneau • Docks & Harbors

155 S. Seward Street • Juneau, AK 99801 (907) 586-0292 Phone • (907) 586-0295 Fax

A RESOLUTION IN SUPPORT OF THE STATE OF ALASKA ADOPTING THE

FOLLOWING FINE PRINT NOTE TO THE 2017 NATIONAL ELECTRICAL CODE

ARTICLE 555.3: “FPN: The 30mA requirement can be applied to all feeder circuits or all branch

circuits in lieu of the main overcurrent protection device.”

Whereas, The 2017 Edition of the National Electrical Code, Article 555.3 requires 30mA ground fault

protection at the overcurrent devices feeding a marina, boatyard, commercial and noncommercial

docking facilities; and

Whereas, The City & Borough of Juneau Docks & Harbors Board acknowledges the real world reality

that many boats may have small amounts of ground current that are well below the trip level of 30mA

(0.030 amps) , however, when added together at the main circuit breaker may exceed the 30mA code

requirement and thus shut down the entire harbor electrical system; and

Whereas, The Alaska Association of Harbormasters and Port Administrators recognizes that it is

necessary to detect electrical ground current at its source and therefore to disconnect power at the source

of the problem instead of disconnecting power to the entire harbor and in doing so creating other safety

and operation problems.

Now therefore be it resolved that the Board of Directors of the City & Borough of Juneau fully supports

the passage by the state legislature to adopt the following find print note to the 2017 National Electrical

Code Article 555.3: “FPN: The 30mA requirement can be applied to all feeder circuits or all branch

circuits in lieu of the main overcurrent protection device.”. Passed and approved by a duly constituted

quorum of the Docks & Harbors Board of the City & Borough of Juneau on this 27th day of October,

2016.

________________________________

Thomas Donek, P.E.

CBJ Docks & Harbors Board Chairman

Attest:

________________________________

Teena Larson

Administrative Officer

CBJ Docks & Harbors

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A RESOLUTION IN SUPPORT OF THE ADDITION OF PORT AND HARBOR

EMPLOYEES TO THE LIST OF EMPLOYEES COVERED BY AS 12.55.135.

Whereas, State of Alaska statute AS 12.55.135. Sentences of Imprisonment for Misdemeanors

establishes minimum terms of imprisonment for defendants convicted of assaulting or harassing

uniformed or otherwise clearly identified peace officers, fire fighters, correctional employees,

emergency medical technicians, paramedics, ambulance attendants or other emergency

responders or medical professionals; and

Whereas, port and harbor employees in communities throughout the State of Alaska routinely

perform enforcement and emergency response duties commensurate with those performed by

peace officers, fire fighters, correctional employees, emergency medical technicians, paramedics,

ambulance attendants or other emergency responders or medical professionals; and

Whereas, defendants convicted of assaulting or harassing port and harbor employees in several

recent cases have received sentences well below the minimums established in AS 12.55.135 for

defendants convicted of assaulting or harassing uniformed or otherwise clearly identified peace

officers, fire fighters, correctional employees, emergency medical technicians, paramedics,

ambulance attendants or other emergency responders or medical professionals; and

Whereas, the Assembly of the City & Borough of Juneau desires to strengthen the deterrent to

unlawfully assault or harass port and harbor employees throughout the State of Alaska.

Now therefore be it resolved that Assembly of the City & Borough of Juneau supports the

addition of port and harbor employees to the list of employees covered by State of Alaska statute

AS 12.55.135. Sentences of Imprisonment for Misdemeanors, which establishes minimum terms

of imprisonment for defendants convicted of assaulting or harassing uniformed or otherwise

clearly identified peace officers, fire fighters, correctional employees, emergency medical

technicians, paramedics, ambulance attendants or other emergency responders or medical

professionals.



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* 2 Marine Way, Suite 175 * Juneau * AK * 99801 * * Ph. 907-586-6275 * FAX 907-586-6276*

* www.WingsAirways.com *

September 16th, 2016 Dear Carl Uchytil and the Docks & Harbors Board: Wings Airways would like to share our grave operational safety concerns once 16B is in place if the Marine Park lightering dock were to remain. It was our misunderstanding that the float would be removed with the construction of 16B, but now recognize that is slated to remain intact. Float plane docking at the Juneau Seadrome requires maneuvering aircraft in response to seas, currents, and winds. The new configuration with the ship berth being moved seaward results in an unsafe and unworkable site due to adverse approach angle and insufficient space to safely maneuver the aircraft should adverse conditions develop on final approach to the dock. Given our operating parameters, almost all dockings require turning the planes to the west (toward Douglas Island) on final approach to the dock. The position of the lightering dock combined with a ship berthed at the Alaska Steam Dock currently make this a tight, but safely doable movement for our pilots and aircraft. The controlling factor is the approach angle which is currently made at close to 90 degrees to our dock face. This allows the pilot to safely abort the approach to the dock should adverse conditions develop. However, when the new berth is completed the approach angle to our docks will be such to require over a 180 degree turn to the dock on final approach. This movement cannot be safely attempted except under the most perfect conditions (sea, currents, and wind). In order to safely operate our aircraft for our pilots, our guests, and the adjacent public we need adequate maneuvering space. Once we realized our error in understanding we studied the variables through mockups and actual aircraft maneuvering drills and feel confident the current situation would have dire consequences for our aircraft. Wings Airways is the current user of the Juneau Seadrome, which has been an active float plane base since the 1920’s. We have made considerable investment in both shore facilities and aircraft to become a more professional and community friendly float plane operator on the Juneau waterfront (Wings Airways even used low interest financing from the CBJ to help upgrade our fleet to modern turbine engines). We are proud to be a part of this community and want to do our part to enhance the downtown experience. Please note we are willing to work with special events such as the Maritime Festival and Celebration to allow temporary use of our dock facilities.

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- 2 -

In the interest of continuing the 100 year tradition of safe and efficient seaplane commerce on the Juneau waterfront we request the removal of the Marine Park lightering dock. Thank you in advance for your consideration and support, Holly Johnson & the Wings Airways/Taku Lodge Ownership Team President Wings Airways Inc. 2 Marine Way, Suite 175 Juneau, AK 99801 [email protected] 907-586-6275

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mailto:[email protected]

Port of Juneau

City & Borough of Juneau • Docks & Harbors 155 S. Seward Street • Juneau, AK 99801

(907) 586-0292 Phone • (907) 586-0295 Fax

From: Carl Uchytil, P.E. Port Director

To: Assembly Lands Committee

Thru: Docks & Harbors Board

Date: October 27th, 2016

Re: ANGOON TRADING COMPANY – TIDELAND LEASE

1. CBJ Docks & Harbors proposes entering into a new 35-year tideland lease with Angoon Trading Company for Alaska Tidelands Survey No. 1670, Tract A, containing 1.46 acres (63,598 sf) along Channel Drive. The existing 55-year lease (ADL 2852/ATS 54) was executed between the State of Alaska and Channel Flying Service/Parker Tug & Barge on November 28th, 1961. On February 8th, 2001, the State of Alaska transferred management of ATS 54 to CBJ Docks & Harbors. The ATS 54 was replatted to ATS 1670, according to plat 2015-1 filed in the Juneau Recording District on January 9th, 2015. Horan & Company appraised ATS 1670, Tract A at $0.10/sf with an effective date of August 13th, 2015. Channel Flying Service assigned its right, title and interest to Angoon Trading Company on August 31st, 2016.

2. The lease assignment to Angoon Trading Company enables the new lease to be offered under 53.20.100 - Preference privilege.

3. The Docks & Harbors Board recommended the Assembly approve a new 35-year lease with Angoon Trading Company for $6359.90 per year at its September 29th, 2016 regular Board meeting. The attached lease language has been reviewed by CBJ Law. It is recommended the lease language be approved by the Docks & Harbors Board and the Assembly Lands Committee. If the lease language is approved a non-code ordinance will be introduced at the November 7th, 2016 Assembly meeting.

#

Encl: (1) Proposed Lease (2) Horan & Company Appraisal

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Lease Agreement for ATS 1670 Page 1 of 13

After Recording Please Return to: City and Borough of Juneau Attn: Carl Uchytil, P.E., Port Director 155 S. Seward Street Juneau, AK 99801

LEASE FOR ATS 1670

PART 1. PARTIES. This lease is between the City and Borough of Juneau, Alaska, a municipal corporation in the State of Alaska, hereafter “CBJ” or “City” and Angoon Trading Company, Inc., a corporation organized under the laws of the State of Alaska (with its principal place of business in Angoon, Alaska), a, hereafter “Lessee.” PART II. LEASE ADMINISTRATION. All communications about this lease shall be directed as follows, and any reliance on a communication with a person other than that listed below is at the party’s own risk. CBJ: Lessee: City and Borough of Juneau Angoon Trading Company, Inc.

Attn: Carl Uchytil, P.E. Attn: Shayne Thompson 155 S. Seward Street P.O. Box 10

Juneau, AK 99801 Angoon, AK 99820 Phone: (907) 586-0292 Phone: 907-788-3111 Fax: (907) 586-0295 Email: [email protected]

PART III. LEASE DESCRIPTION. The following appendices are attached hereto and are considered to be part of this lease agreement as well as anything incorporated by reference or attached to those appendices. Appendix A: Property Description & Additional Lease Provisions Appendix B: Lease Provisions Required by CBJ Chapter 53.20 Appendix C: Standard Provisions If in conflict, the order of precedence shall be: this document, Appendix A, B, and then C.

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PART IV. PRIOR LEASE AGREEMENTS SUPERSEDED. This lease agreement supersedes and replaces any lease agreement for Alaska Tidelands Survey No. 54/ADL 2852, entered into between the State of Alaska and a predecessor lessee on November 28, 1961, and any amendments to, or assignments of, that lease agreement. PART V. LEASE EXECUTION. CBJ and Lessee agree and sign below. This lease is not effective until signed by the CBJ. Lessee: Date: _______________________ By: _______________________ Shayne Thompson

President and Director, Angoon Trading Company, Inc. LESSEE ACKNOWLEDGMENT STATE OF ALASKA ) ) ss: FIRST JUDICIAL DISTRICT ) This is to certify that on the ____ day of ___________________, 201__, before the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared Shayne Thompson, President and Director, of Angoon Trading Company, Inc., to me known to be the identical individuals described in and who executed the foregoing instrument for and on behalf of said corporation, as Lessee, which executed the above and foregoing instrument; who on oath stated that s/he was duly authorized to execute said instrument; who acknowledged to me that s/he signed the same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in the certificate first above written. ___________________________________ Notary Public in and for the State of Alaska My Commission Expires: ______________

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CBJ: Date: ____________________________________ By: ____________________________________ Carl Uchytil

CBJ Port Director CBJ ACKNOWLEDGMENT STATE OF ALASKA ) ) ss: FIRST JUDICIAL DISTRICT ) This is to certify that on the ____ day of ___________________, 2016, before the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared Carl Uchytil, to me known to be the Port Director of the City and Borough of Juneau, Alaska, a municipal corporation which executed the above foregoing instrument, who on oath stated that he was duly authorized to executive said instrument on behalf of said corporation; who acknowledged to that that he signed the same freely and voluntarily on behalf of said corporation for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in the certificate first above written. ___________________________________ Notary Public in and for the State of Alaska My Commission Expires: ______________ Risk Management Review: ______________________________________, Risk Manager Approved as to Form: ______________________________________, Law Department

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APPENDIX A: PROPERTY DESCRIPTION & ADDITIONAL LEASE PROVISIONS

1. DESCRIPTION OF PROPERTY The property subject to this lease is generally referred to as “the Leased Premises” or “the Property.” The Leased Premises subject to this lease is also known as Angoon Trading Company Inc. The Leased Premises are described as follows:

Alaska Tidelands Survey No. 1670, Tract A, according to the plat 2015-1 filed in the Juneau Recording District on January 9th, 2015 containing 1.46 acres, more or less.

The Leased Premises, depicted on Plat 2015-1 are subject to any legally enforceable encumbrances. A copy of Plat 2015-1 is attached as Exhibit A. There is a 12’ x 9’ electrical easement in the northwest corner of the property also depicted on Plat 2015-1. 2. AUTHORITY This lease is entered into pursuant to the authority of CBJ Code Section 85.02.060(a)(5) and CBJ Chapter 53.20; and CBJ Ordinance No. 2016-____, adopted by the City and Borough of Juneau Assembly on ____________, 2016 and effective 30 days thereafter. 3. TERM The parties agree that it was their intent to enter into this lease arrangement for the 35 year period starting November 27, 2016. Accordingly, the parties agree and intend that this lease shall be interpreted as having the effective date be retroactive to November 27, 2016. The parties agree and consent to being bound by the terms of this agreement as if it had been entered into as of November 27, 2016. The term of the lease is 35 years and shall remain in effect until November 27, 2051, unless sooner terminated. 4. LEASE PAYMENTS AND ADJUSTMENTS

a) The annual rent for each year for the first five years of the lease, November 27, 2016 – November 26, 2021, shall be $6,359.80. Lessee has the option to pay the CBJ a monthly payment of five hundred and twenty-nine dollars and ninety-nine cents ($529.99). Payments shall be made to City and Borough of Juneau, 155 S. Seward Street Juneau, AK 99801 and reference D&H Lease ATS 1670 Tract A.

b) Lessee shall pay CBJ without demand, deduction or offset the monthly rental in advance or on the first (1st) day of each month during the Lease. Payments for any partial month at the beginning or end of the Lease term shall be prorated.

c) CBJ’s acceptance of less than the full amount of any payment due from Lessee shall not

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be deemed an accord and satisfaction or compromise of such payment unless CBJ specifically consents in writing to payment of such lesser sum as an accord and satisfaction or compromise of the amount which CBJ claims.

d) Beginning with the first year after the initial five-year period of the term, November 27th, 2021, the Port Director will re-evaluate and adjust the annual lease payment for the Leased Premises for the next five-year period of this lease, and then every five years thereafter, pursuant to Appendix B, Section 3(b) of this lease, CBJ 53.20.190(2), CBJ 85.02.060(a)(5), and the Docks and Harbors lease administration regulations, 05 CBJAC Chapter 50. The new annual lease payment amount shall be paid retroactively to the beginning of that lease payment adjustment period. Lessee shall pay all appraisal costs associated with re-evaluating and making adjustments to the annual lease payment.

5. AUTHORIZED USE OF PREMISES Lessee is authorized to use the Leased Premises for a warehouse, product distribution facility, and barge landing. Should Lessee wish to further develope the Leased Premises, Lessee shall be required to obtain approval of its development plans from the CBJ Docks and Harbors Board prior to any further development of the Leased Premises or improvements. Lessee shall be responsible for obtaining all necessary permits and approvals for Lessee’s development of the Leased Premises. 6. TAXES Lessee is hereby on notice that this lease may make all or a portion of the Leased Premises taxable. Lessee shall pay all taxes, assessments, liens and license fees levied, assessed or imposed by any authority having the direct or indirect power to tax or assess any such liens, by reason of Lessee’s use of the Leased Premises. 7. UTILITIES AND SERVICES If the Lessee wants utilities or services provided to the Leased Premises, the Lessee shall furnish and pay, at Lessee’s sole expense, the desired utilities and services (including but not limited to power, water, waste water, trash, janitorial, telephone, internet, and cable). 8. INSURANCE Lessee shall provide a certification of proper insurance coverage to the CBJ. Lessee has secured and agrees to keep and maintain in full force and effect, at its own expense, the insurance approved by CBJ Risk Management as outlined below. All insurance required under this contract shall name the CBJ as an additional insured, except with respect to Workers Compensation policies. At least 30 days prior to the cancellation, non-renewal or reduction in the amount of coverage, Lessee shall provide written notice to the CBJ’s Risk Management. The Lessee’s insurance shall be primary and any insurance maintained by the CBJ shall be non-contributory. Failure of CBJ to demand such certificate or other evidence of full compliance with these insurance requirements or failure of CBJ to identify a deficiency from evidence that is provided shall not be construed as a waiver of the obligation of the Contractor to maintain the insurance required by this contract.

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Commercial General Liability Insurance. Lessee shall maintain in full force and effect, at its own expense, at all times during this lease, commercial general liability insurance in the amounts of $1,000,000 per occurrence and $2,000,000 general aggregate. The insurance policy shall name CBJ as an “Additional Insured” and shall require that the insurance company give prior written notice consistent with the terms of the policy, to the CBJ’s Risk Management Officer prior to any cancellation, non-renewal, or reduction in the amount of coverage. If the Lessee maintains higher limits than shown below, the CBJ shall be entitled to coverage for the higher limits maintained by the Lessee.

Comprehensive Automobile Liability Insurance. The coverage shall include all owned, hired, and non-owned vehicles to a one million dollar ($1,000,000.00) combined single limit coverage. The CBJ shall be named as additional insured on this policy. Workers Compensation Insurance. As required by Alaska Statute (AS 23.30), the Lessee must maintain Workers Compensation Insurance to protect the Lessee from any claims or damages for any personal injury or death which may arise from services performed on the Leased Premises. This requirement applies to the Lessee’s firm, any subcontractors or assignees, and anyone directly or indirectly employed to perform work by the Lessee on the Leased Premises. The Lessee must notify the CBJ as well as the State Division of Workers Compensation immediately when changes in the Lessee’s business operation affect the Lessee’s insurance status. Statutory limits apply to Workers Compensation Insurance. The policy must include employer’s liability coverage of one hundred thousand dollars ($100,000.00) per injury and illness, and five hundred thousand dollars ($500,000.00) policy limits. Lessee also agrees to provide evidence of Longshore and Harbor Worker’s Insurance and Jones Act coverage if applicable to the Lessee’s use of the Leased Premises. The policy shall be endorsed to waive subrogation rights against the CBJ.

Property Insurance. Lessee acknowledges that CBJ carries no fire or other casualty insurance on the Lease Premises or improvements located thereon belonging to Lessee, and that it is the Lessee’s obligation to obtain adequate insurance for protection of Lessee’s buildings, fixtures, or other improvements, or personal property located on the Leased Premises, and adequate insurance to cover debris removal.

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APPENDIX B: LEASE PROVISIONS REQUIRED BY CBJ CHAPTER 53.20 and CBJ CHAPTER 50

1. RESPONSIBILITY TO PROPERLY LOCATE ON LEASED PREMISES. As required by CBJ 53.20.160, it shall be the responsibility of Lessee to properly locate Lessee’s improvements on the Lease Premises and failure to so locate shall render Lessee’s liable as provided by law. 2. APPROVAL OF OTHER AUTHORITIES. As required by CBJ 53.20.180, the issuance by CBJ of leases, including this lease, under the provisions of CBJ Title 53 does not relieve Lessees of responsibility for obtaining licenses, permits, or approvals as may be required by CBJ or by duly authorized state or federal agencies. 3. TERMS AND CONDITIONS OF LEASES REQUIRED BY CBJ 53.20.190. As required by CBJ 53.20.190, the following terms and conditions govern all leases and are incorporated into this lease unless modified by the Assembly by ordinance or resolution for this specific lease. Modifications of the provisions of this Appendix B applicable to this specific lease, if any, must specifically modify such provisions and be supported by the relevant ordinance or resolution to be effective. (a) Lease Utilization. The Leased Premises shall be utilized only for purposes within the scope of the application and the terms of the lease, and in conformity with the provisions of CBJ code, and applicable state and federal laws and regulations. Utilization or development of the Leased Premises for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. (b) Adjustment of Rental. Lessee agrees to a review and adjustment of the annual rental payment by the Port Director not less often than every fifth year of the lease term beginning with the rental due after completion of each review period. Any changes or adjustments shall be based primarily upon the values of comparable land in the same or similar areas; such evaluations shall also include all improvements, placed upon or made to the land, to which the CBJ has right or title, excluding landfill placed upon the land by Lessee, except that the value of any improvements credited against rentals shall be included in the value.

(i) Delays in setting rents. Delays in setting or adjusting lease rents due

to the appraisal process shall not change the effective date of the lease rent change. In the case of renewals, the new rent shall apply retroactively to the date the lease expired. In the case of rent adjustments during a lease, the new rent shall apply retroactively to the date of rent adjustment as set out in the lease. (ii) Adjustment Dispute Resolution. Should the Lessee disagree with the lease rent adjustment proposed by the Port Director, the Lessee shall pay for an appraisal and have the appraisal undertaken in accordance with the requirements set out in 05 CBJAC 50.050. In the event the Docks and Harbors Board disagrees with an appraisal, and the Board cannot

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reach an agreement with the lessee on the lease rent adjustment, the Board shall pay for an additional appraisal and have the appraisal undertaken in accordance with the requirements set out in 05 CBJAC 50.050. The Board shall establish the lease rent adjustment based on this additional appraisal. In the event the Lessee disagrees with the lease rent adjustment, the lessee may appeal to the Assembly. The decision of the Assembly shall be final. (c) Subleasing. Lessee may sublease Leased Premises or any part thereof leased to Lessee hereunder; provided, that the proposed sub-lessee shall first apply to CBJ for a permit therefore; and further provided, that the improvements on the Leased Premises are the substantial reason for the sublease. Leases not having improvements thereon shall not be sublet. Subleases shall be in writing and be subject to the terms and conditions of the original lease; all terms, conditions, and covenants of the underlying lease that may be made to apply to the sublease are hereby incorporated into the sublease. (d) Assignment. Lessee may assign its rights and obligations under this lease; provided that the proposed assignment shall be approved by CBJ prior to any assignment. The assignee shall be subject to all of the provisions of the lease. All terms, conditions, and covenants of the underlying lease that may be made applicable to the assignment are hereby incorporated into the assignment. (e) Modification. The lease may be modified only by an agreement in writing signed by all parties in interest or their successor in interest. (f) Cancellation and Forfeiture. (i) The lease, if in good standing, may be cancelled in whole or in part, at any time, upon mutual written agreement by Lessee and CBJ. (ii) CBJ may cancel the lease if it is used for any unlawful purpose. (iii) If Lessee shall default in the performance or observance of any of the lease terms, covenants or stipulations thereto, or of the regulations now or hereafter in force, or service of written notice by City without remedy by Lessee of the conditions warranting default, CBJ may subject Lessee to appropriate legal action including, but not limited to, forfeiture of the lease. No improvements may be removed by Lessee or other person during any time Lessee is in default. (iv) Failure to make substantial use of the land, consistent with the proposed use, within one year shall in the discretion of CBJ with approval of the Assembly constitute grounds for default. (g) Notice or Demand. Any notice or demand, which under terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing, and be given or made by registered or certified mail, addressed to the other party at the address of record.

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However, either party may designate in writing such new or other address to which the notice or demand shall thereafter be so given, made or mailed. A notice given hereunder shall be deemed delivered when deposited in a United States general or branch post office enclosed in a registered or certified mail prepaid wrapper or envelope addressed as hereinbefore provided. (h) Rights of Mortgage or Lienholder. In the event of cancellation or forfeiture of a lease for cause, the holder of a properly recorded mortgage, conditional assignment or collateral assignment will have the option to acquire the lease for the unexpired term thereof, subject to the same terms and conditions as in the original lease. (i) Entry and Reentry. In the event that the lease should be terminated as hereinbefore provided, or by summary proceedings or otherwise, or in the event that the demised lands, or any part thereof, should be abandoned by Lessee during the term, CBJ or its agents, servants, or representative, may, immediately or any time thereafter, reenter and resume possession of lands or such thereof, and remove all personals and property there from either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No reentry by CBJ shall be deemed an acceptance of a surrender of the lease. (j) Lease. In the event that the lease should be terminated as herein provided, or by summary proceedings, or otherwise, CBJ may offer the lands for lease or other appropriate disposal pursuant to the provisions of CBJ code. (k) Forfeiture of Rental. In the event that the lease should be terminated because of any breach by Lessee, as herein provided, the annual rental payment last made by Lessee shall be forfeited and retained by CBJ as partial or total damages for the breach. (l) Written Waiver. The receipt of rent by CBJ with knowledge of any breach of the lease by Lessee or of any default on the part of Lessee in observance or performance of any of the conditions or covenants of the lease, shall not be deemed a waiver of any provision of the Lease. No failure on the part of the CBJ to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by CBJ unless in writing, shall discharge or invalidate such covenants or provisions or affect the right of CBJ to enforce the same in the event of any subsequent breach or default. The receipt, by CBJ, of any rent or any other sum of money after the termination, in any manner, of the term demised, or after the giving by CBJ of any notice thereunder to effect such termination, shall not reinstate, continue, or extend the resultant term therein demised, or destroy, or in any manner impair the efficacy of any such notice or termination as may have been given thereunder by CBJ to Lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by CBJ. (m) Expiration of Lease. Unless the lease is renewed or sooner terminated as provided herein, Lessee shall peaceably and quietly leave, surrender and yield up to the City all of the leased land on the last day of the term of the lease.

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(n) Renewal Preference. Any renewal preference granted to Lessee is a privilege, and is neither a right nor bargained for consideration. The lease renewal procedure and renewal preference shall be that provided by ordinance in effect on the date the application for renewal is received by the designated official. (o) Removal or Reversion of Improvement upon Termination of Lease. Improvements owned by Lessee shall within sixty calendar days after the termination of the lease be removed by Lessee; provided, such removal will not cause injury or damage to the lands or improvements demised; and further provided, that CBJ may extend the time for removing such improvements in cases where hardship is proven. Improvements owned by Lessee may, with the consent of CBJ, be sold to the succeeding Lessee. All periods of time granted Lessee to remove improvements is subject to Lessee’s paying the CBJ pro rata lease rentals for the period. (i) If any improvements and/or chattels not owned by CBJ and having an appraised value in excess of five thousand dollars as determined by the assessor are not removed within the time allowed, such improvements and/or chattels on the lands, after deducting for CBJ rents due and owning and expenses incurred in making such sale. Such rights to proceeds of the sale shall expire one year from the date of such sale. If no bids acceptable to the Port Director are received, title to such improvements and/or chattels shall vest in CBJ. (ii) If any improvements and/or chattels having an appraised value of five thousand dollars or less, as determined by the assessor, are not removed within the time allowed, such improvements and/or chattels shall revert to, and absolute title shall vest in, CBJ. (p) Rental for Improvements or Chattels not Removed. Any improvements and/or chattels belonging to Lessee or placed on the lease during Lessee’s tenure with or without his permission and remaining upon the premises after the termination date of the lease shall entitle CBJ to charge Lessee a reasonable rent therefor. (q) Compliance with Regulations Code. Lessee shall comply with all regulations, rules, and the code of the City and Borough of Juneau, and with all state and federal regulations, rules and laws as the code or any such rules, regulations or laws may affect the activity upon or associated with the leased land. (r) Condition of Premises. Lessee shall keep the premises of the lease in neat, clean, sanitary and safe condition and shall take all reasonable precautions to prevent, and take all necessary action to suppress destruction or uncontrolled grass, brush or other fire on the leased lands. Lessee shall not undertake any activity that causes or increases a sloughing off or loss of surface materials of the leased land. (s) Inspection. Lessee shall allow an authorized representative of CBJ to enter the lease land for inspection at any reasonable time.

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(t) Use of Material. Lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoils, or any other materials valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used, if its use is first approved by the CBJ. (u) Rights-of-Way. CBJ expressly reserves the right to grant easements or rights-of-way across leased land if it is determined in the best interest of the CBJ to do so. If CBJ grants an easement or right-of-way across the leased land, Lessee shall be entitled to damages for all Lessee-owned improvements or crops destroyed or damaged. Damages shall be limited to improvements and crops only, and loss shall be determined by fair market value. Annual rentals may be adjusted to compensate Lessee for loss of use. (v) Warranty. CBJ does not warrant by its classification or leasing of land that the land is ideally suited for the use authorized under the classification or lease and no guaranty is given or implied that it shall be profitable to employ land to said use. (w) Lease Rental Credit. When authorized in writing by CBJ prior to the commencement of any work, Lessee may be granted credit against current or future rent; provided the work accomplished on or off the leased area results in increased valuation of the leased or other city and borough-owned lands. The authorization may stipulate type of work, standards of construction and the maximum allowable credit for the specific project. Title to improvements or chattels credited against rent under this section shall vest immediately and be in CBJ and shall not be removed by Lessee upon termination of the lease.

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APPENDIX C: STANDARD PROVISIONS (1) Holding Over. If Lessee holds over beyond the expiration of the term of this lease and the term has not been extended or renewed in writing, such holding over will be a tenancy from month-to-month only. (2) Interest on Late Payments. Should any installment of rent or other charges provided for under the terms of this lease not be paid when due, the same shall bear interest at the rate established by ordinance for late payments or at the rate of 12 percent per annum, if no rate has been set by ordinance. (3) Taxes, Assessments, and Liens. During the term of this lease, Lessee shall pay, in addition to the rents, all taxes, assessments, rates, charges, and utility bills for the Leased Premises and Lessee shall promptly pay or otherwise cause to be discharged, any claim resulting or likely to result in a lien, against the Leased Premises or the improvements placed thereon. (4) Easements. Lessee shall place no building or structure over any portion of the Leased Premises where the same has been set aside or reserved for easements. (5) Encumbrance of Parcel. Lessee shall not encumber or cloud CBJ’s title to the Leased Premises or enter into any lease, easement, or other obligation of CBJ’s title without the prior written consent of the CBJ; and any such act or omission, without the prior written consent of CBJ, shall be void against CBJ and may be considered a breach of this lease. (6) Valid Existing Rights. This lease is entered into and made subject to all existing rights, including easements, rights-of-way, reservations, or other interests in land in existence, on the date of execution of this lease. (7) State Discrimination Laws. Lessee agrees, in using and operating the Leased Premises, to comply with applicable sections of Alaska law prohibiting discrimination, particularly Title 18 of the Alaska Statutes, Chapter 80, Article 4 (Discriminatory Practices Prohibited). In the event of Lessee’s failure to comply any of the above non-discrimination covenants, CBJ shall have the right to terminate the lease. (8) Unsafe Use. Lessee shall not do anything in or upon the Leased Premises, nor bring or keep anything therein, which will unreasonably increase or tend to increase the risk of fire or cause a safety hazard to persons or obstruct or interfere with the rights of any other tenant(s) or in any way injure or annoy them or which violates or causes violation of any applicable health, fire, environmental or other regulation by any level of government. (9) Hold Harmless. Lessee agrees to defend, indemnify, and save CBJ, its employees, volunteers, consultants, and insurers, with respect to any action, claim, or lawsuit arising out of or related to the use and occupancy of the Leased Premises by Lessee. This agreement to defend, indemnify, and hold harmless is without limitation as to the amount of fees, costs, expense, or

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damages resulting from settlement, judgment or verdict, and includes the award of any costs and attorneys fees even if in excess of Alaska Civil Rules 79 or 82. This indemnification agreement applies to the fullest extent permitted by law and is in full force and effect whenever and wherever any action, claim, or lawsuit is initiated, filed, or otherwise brought against CBJ relating to this lease. The obligations of Lessee arise immediately upon actual or constructive notice of any action, claim, or lawsuit. CBJ shall notify Lessee in a timely manner of the need for indemnification, but such notice is not a condition precedent to Lessee’s obligations and may be waived where the Lessee has actual notice. (10) Successors. This lease shall be binding on the successors, administrators, executors, heirs, and assigns of Lessee and CBJ. (11) Choice of Law; Venue. This lease shall be governed by the law of the State of Alaska. Venue shall be in the State of Alaska, First Judicial District at Juneau.

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APPRAISAL REPORT MARKET RENT

OF ATS 54

LOCATED IN GASTINEAU CHANNEL,

AT 2601 CHANNEL DRIVE

JUNEAU, ALASKA

PREPARED FOR: City and Borough of Juneau Docks and Harbors

155 S. Seward Street

Juneau, Alaska 99801

PREPARED BY: Charles Horan, MAI

Joshua Horan, Real Estate Appraiser

Horan & Company, LLC

403 Lincoln Street, Suite 210

Sitka, Alaska 99835

EFFECTIVE DATE: August 13, 2015

REPORT DATE: September 18, 2015

OUR FILE NO.: 15-075

CHANNEL FLYING LEASE, WAREHOUSE AND CHANNEL DRIVE PHOTO RIGHT (081315_12270)

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HORAN & COMPANY REAL ESTATE APPRAISERS/CONSULTANTS

CHARLES E. HORAN, MAI / WILLIAM G. FERGUSON, JOSHUA C. HORAN, SHEILA M. KRAMER

403 LINCOLN STREET , SU ITE 210, SITKA , ALASKA 99835 PHONE NUMBER: (907)747-6666 FAX NUMBER (907)747-7417 [email protected]

15-075 - ATS 54, Channel Flying Lease Update 2 | P a g e

September 18, 2015

Carl Uchytil, P.E., Port Director

City and Borough of Juneau Docks and Harbors

155 S. Seward Street

Juneau, Alaska 99801 VIA Email: [email protected]

Re: Appraisal Report Market Rent of ATS 54, Tract A, Plat 2015-1 (formerly plat 2001-4)

Gastineau Channel, at 2601 Channel Drive, Juneau, Alaska, Our File 15-075

Dear Mr. Uchytil,

We have contacted the lessee, inspected the property and made a market analysis of the

tidelands and waterfront real estate market to determine the market rent for the above

referenced Tidelands Lease. Based on this analysis, the estimated annual market rent value, as

of the valuation date of August 13, 2015 is as follows:

ATS 54

1.46 acres or 63,598 SF @ $0.10/SF = $6,359.80/year

Your attention is invited to the remainder of this report which sets forth the Assumptions and

Limiting Conditions and Certification of Appraisal in the addenda, and the most pertinent data

considered in estimating the market rent of the subject property. This appraisal report is

intended to comply with the rules and regulations as set forth by the Uniform Standards of

Professional Appraisal Practice (USPAP) and the City and Borough of Juneau’s Appraisal

instructions.

If you have any questions or comments, please feel free to contact us at your convenience.

Sincerely,

Charles E. Horan, MAI Joshua Horan, Real Estate Appraiser

Horan & Company, LLC

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Exhibit A (1 of 2)

50

Exhibit A (2 of 2)

51

25

Total

As of September 29th, 2016

165

Current Number of Liveaboard Vessels in Juneau Harbors

Aurora Harris Douglas Statter

88 30 22

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05 CBJAC 20.050 - Residence surcharge.

(a) Definition. A fee assessed to the owner of a vessel when the vessel is used by any person as a

residence, dwelling, or abode for three or more calendar days in any calendar month, unless

(1) The owner pays daily moorage in accordance with 05 CBJAC 20.030 for all days in the calendar

month during which the vessel is used for three or more days as a residence, dwelling, or abode; or

(2) The Harbormaster in writing authorizes the owner to use the vessel as a residence, dwelling, or

abode for more than three calendar days in any calendar month, provided such authorization may be

given only for short term, temporary use of the vessel as a residence, dwelling, or abode of not more

than seven days in the calendar month for which the authorization is given.

(b) For any vessel identified as a live aboard boat, proof shall be required that at least one of the

persons residing aboard the vessel is the legal registered owner. Acceptable forms of proof

include a copy of the current State vessel registration or U. S. Coast Guard documentation

certificate. Requests for waivers to the requirements of this section shall be submitted in writing

to the Harbormaster for consideration on a case by case basis.

(c) No untreated human waste or any substance or material deleterious to fish, plants or animal

life may be discharged from a vessel except in a lawful and approved manner within the confines

of the harbor system. Additionally, live aboard vessels shall be equipped with a permanently

installed, operational, Coast Guard approved, Type I, II or III marine sanitation device. The

harbormaster shall have the right, upon reasonable notice, to inspect the interior of any such

vessel to verify compliance with this requirement. Portable toilets are not considered an installed

toilet facility and do not meet the requirements of this section. The harbormaster may approve

other devices meeting the zero discharge of human waste requirement which are not specifically

labelled as marine sanitation devices. Waste may not be discharged within the harbors except at

one of the City’s sewage pump out stations or legally offloaded to a licensed private sewage

handling contractor or transferred to one of the harbor pump out stations via a portable tank

approved by the Harbormaster. The harbormaster shall have the right to require owners of live

aboard vessels to demonstrate and/or document regular, legal off-loading of waste.

(d) To minimize the impact and ensure harbors remain a maritime hub of transportation as

intended, live aboard vessels shall not exceed 10% stall occupancy with in each harbor. This

10% rule would allow for 45 live aboard vessels in Aurora Harbor, 20 Live aboard vessels in

Douglas Harbor, 20 live aboard vessels in Harris Harbor and 7 in Statter Harbor assigned

moorage. Statter Harbor transient area is not designated as live aboard moorage between 1 May

and 30 September. Owners requesting to be placed in a live aboard status in a harbor that is at

capacity will be placed on a waitlist. Live aboard residents registered as of January1, 2017

will be granted residence until the vessel is no longer registered in the harbor.

(e) Residence surcharge period and duty to report. The residence surcharge will be assessed on a

calendar month basis. The owner of the vessel is responsible for paying the residence surcharge. The

owner of the vessel is responsible for immediately notifying the Harbormaster when their vessel is being

occupied and used, rented, or leased as a place of residence. Once a vessel is used as a residence, the

Docks and Harbors Department will continue to assess the residence surcharge until the owner of the

vessel gives written notice to the Harbormaster that the vessel is no longer used for a residence.

(f) Payment deadline. The owner must pay the residence surcharge in advance before the first day of the

calendar month for which the owner is planning to use the vessel as a residence. An owner that does not

or cannot pay the residence will be assessed a daily moorage fee in accordance with Section [05 CBJAC

20.030] 30 of this regulation in addition to any annual or monthly moorage that may have been paid.

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https://www.municode.com/library/ak/juneau/codes/code_of_ordinances?nodeId=PTIVADCORE_TIT05DOHA_CH20SMBOHAFECH_05_CBJAC_20.030DAMOFE



(g) Residence surcharge. The owner shall pay a residence surcharge of $TBD per calendar month, or portion

thereof, for each vessel used as a residence. For a vessel with more than four residents, the owner shall pay

an additional surcharge of $TBD per calendar month, or portion thereof, for each additional resident. A

resident shall register their pets with the harbor department and be assessed a surcharge of $TBD per calendar month per pet. (Amended 4-11-2005, eff. 4-19-2005; Amended 4-7-2008, eff. 4-15-2008; Amended 3-15-2010, eff. 3-22-

2010)

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Downtown Uplands Expansion October 27th, 2016

Issue: The May 2017 anticipated completion of the new cruise ship berth project will bring greater opportunity to develop Juneau into a world class tourist destination. The dock expansion will align the three major SE Alaskan cruise ship ports (Juneau, Ketchikan & Skagway) to serve like-sized vessels enhancing the industry’s ability to schedule and coordinate operations. The challenges to the Port of Juneau will be to safely and efficiently move cruise ship passengers locally as pedestrians and as tourists destined for excursions outside of the downtown corridor.

Background: CBJ has been engaged in development of infrastructure to improve and enhance its waterfront since the adoption of the 2004 Long Range Waterfront Plan (LRWP). In addition to the expansion of the cruise ship docks, the LRWP has provided a blueprint for significant improvements including the development of uplands coach & bus staging, construction of Customs & Border Protection/Port Field Office Building, construction of a Visitor’s Center and portions of the downtown Seawalk. The completion of the adjacent uplands to the Cruise Ship Terminal (CT) Dock in 2014 provided coach & bus staging efficiencies with a dozen “A Zone” angled parking spaces, four smaller “B Zone” angled parking space and ten pull-through lanes for shuttles and other modes of transport.

Adjacent to the Alaska Steamship (AS) Dock is the “Brickyard” which was constructed in 2004 to support coach and bus staging area at the northern end of Juneau’s cruise ship terminus. The Brickyard is capable of handling approximately a dozen coaches angled parked.

One of the last remaining, developable property in the Juneau downtown is the Archipelago Property which adjoins to the downtown library and Miners Hall. The approximate acreage of the property is 2.5 acres, including tidelands. In the past four years, CBJ has acquired property along the sidewalk, an additional 25 foot swath bisecting the lot and 7267 square feet (0.17 acre) of tidelands. The Archipelago Property owners have offered the sale of the lots since 2009. Archipelago Lot 1 (43,508 sf/1.0 acre – CBJ Assessed Value: $7.14M) and Archipelago Lot 2 (10,305 sf/0.24 acre – CBJ Assessed Value: $2.17M) would be available for CBJ acquisition and development (see attached).

Analysis: The improved capacity at the Alaska Steamship Dock will require additional planning to find pedestrian and vehicular transportation solutions. In prior years, the AS Dock could handle vessels up to 800 feet in length with an upper passenger count of 1500 guests. The new berth will be capable of mooring vessels in excess of 1100 feet which could bring 4500 or more passengers ashore in the future. Even with increased targeted efficiencies with loading and disembarking passengers, transportation means and methods will not carry the anticipated demands of the AS Dock with the existing, limited Brickyard facility. Innovative and creative answers must be coordinated with the transportation and cruise industries.

Organizers of the proposed Juneau Ocean Center have suggested that a downtown circulator bus may provide the efficacy to shuttle tourists from a downtown staging area to a satellite parking lot adjoining the JOC.

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Downtown Uplands Expansion October 27th, 2016

Recommendation: Docks & Harbors staff have advocated for the acquisition of the entire Archipelago Lot since 2012. Docks & Harbors believes the Archipelago Lots, in concert with a refined downtown LRWP, would lead to additional efficiencies for transportation, retail and restaurant establishment opportunities, and for desirable waterfront enjoyment. Sketches for the potential utilization of the Archipelago Lots have been contemplated by Docks & Harbors staff ranging from coach/bus staging to commercial retail development to permanent USS Juneau Memorial to a waterfront food court. Most likely, a concept to leverage these ideas would be palatable to competing interests, such as the tourism and transportation industries, the Juneau public and entrepreneurial investors. To fully develop this unimproved property to its best and highest end state, requires an entity capable of coordinating the private and public interests for the betterment of the community. After several years on the market it appears there is not a private investor willing to move forward with the acquisition of the Archipelago Lots. This provides a unique opportunity for Docks & Harbors to secure the property using Dock Funds and potentially marine passenger funds to develop and improve the safety and efficiency of the uplands supporting the cruise ships and their passengers.

Docks & Harbors recommends the following:

• The Archipelago Property owners be formally notified that CBJ wishes to enter into negotiations for the acquisition of Archipelago Lots 1 & 2.

• That an independent appraisal be conducted on behalf of CBJ for the purchase of the lots. • That the cruise and transportation industry be consulted to determine the best opportunities to

meet the demands the growing tourism. • That a public planning process be conducted to determine what amenities can be added to the

waterfront development while still providing safe and secure access to the cruise ships and their passengers.

Attachments: (1) Aerial View of Archipelago Lots (2) 2012 Sketches of Potential Archipelago Lot Development

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$7.143M

43,500 sf

$2.1719M

10,305 sf

D&H

Archipelago Lots - Size & CBJ Assessed Values

57

PORT ENGINEER'S PROJECT STATUS REPORTGary Gillette, Port Engineer

10/27/2016 Page 1 of 2

Project Status Schedule Contractor NotesBoat Yard at ABLF

Shop and Office Builidngs In Progress MRV Awaiting final drawingsFabric Structure In Progress Clear-Span Delivery in November

Auke Bay Loading Facility - Phase IITIGER Grant Close-Out On-Going Annual equipment reporting

Douglas Harbor ReconstructionPhase III -Material Procurement In Progress Trucano Piles in town, floats arriving weekly

Phase III - Construction In Progress Trucano Trucano is on siteStatter Harbor Launch Ramp

Construction In Progress Miller Past completion dateStatter Tidelands Survey In Progress R&M

Port of Juneau Cruise Berths1% for Art In Progress Garten

Prefabrication and Procurement In Progress MansonSubmittal Review and Fabrication Inspection In Progress PND

North Berth - On-Site Construction Hold 9/21/16-5/7/17 MansonNorth Berth - On-Site Inspection Hold 9/21/16-5/7/17 PND

Vibration Monitoring Services In Progress AS&E Setting up equipment at sitesDNR Tidelands Survey In Progress Evaluating RFPs

Aurora Harbor Re-Build - Phase IProject Close-Out In Progress NCS Awaiting final paperwork

Aurora Harbor Re-Build - Phase IIPreliminary Planning & Design In Progress PND

35% Design Review Approved PNDStatter Master Plan Phase III

Plan Approval Complete Board Concept 3 ApprovedDesign In Progress PND

Conditional Use Permit In Progress Staff Preparing Application DocumentFlood Elevation Exception In Progress Staff Preparing Application Document

Army Corps of Engineers Permit In Progress PNDSurveying, GeoTech, Sampling In Progress PND Awaiting reports

Weather Monitoring System In Progress MXAK Procuring equipment for next phasePeriodic Maintenance (Lucity Program) In Progress Staff Working with MIS for program entry

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PORT ENGINEER'S PROJECT STATUS REPORTGary Gillette, Port Engineer

10/27/2016 Page 2 of 2

Archipelago Property Improvements Hold Staff Awaiting Board DirectionArchipelago Property Procurement Hold Staff Awaiting fundingAmalga Harbor Fish Cleaning Station Hold Staff Re-visit in Jan 2017Cruise Berth Shore Tie Power Study In Progress PND Reviewing final reportAurora Harbor - Dredging on A Float Hold Awaiting fundingAurora Harbor - Annodes on Piling Hold Awaiting fundingMarine Park Sheet Wall Coating Hold Tinnea FY18 Passenger Fees?TIGER 8 Grant App. - Fisheries Terminal Hold Staff Didn't receive grantTaku Harbor Pile Jacking Hold Staff Requesting funding from ADF&GAuke Bay Marine Station Acquisition In Progress Staff Awaiting decision by MARADStatter Breakwater Safety Improvements In Progress PNDPort Security Camera Grant - Phase II In Progress MonroeHarborwide Security Camera Plan In Progress StaffNorway Point to Bridge Master Plan In Progress Corvus Reviewing sketch plans

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cbj docks and harbors board · iv. approval of august 18th, 2016 regular board meeting minutes ....

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