By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly Tuesday night put the finishing touches on a request for proposals seeking private sector offers on building a boat haulout at the Gary Paxton Industrial Park.
The 60-day advertising period for proposals will put consideration of offers some time around the first of April. The city’s long-stated goal is to have the facility in operation before the Sitka’s privately owned marine haulout shuts down in the spring.
The Assembly gave unanimous approval to the RFP and to an amendment stating that offers to lease the 6.8 acres of city land for the haulout would be given greater weight than the option of purchasing the land.
Other items
In other business, the Assembly approved a grant application for a communications repeater it Mud Bay on Kruzof Island; voted to write off uncollectible debts related to Sitka Community Hospital before it was sold to SEARHC; introduced an ordinance appropriating $30,000 for expenses related to the sale of the hospital; and granted the sales tax appeal of a homeowner affected by the 2015 Kramer Ave. landslide.
Boat Haulout
Assembly member Thor Christianson read the two amendments to the request for proposals developed by a committee over the two weeks since its passage RFP was postponed.
“I think the biggest change is it’s saying that even if you want to buy it, you’re going to have to lease it first,” Christianson said. “We expect any ownership plans to include a lease first, so we can get a chance to see them in action beforehand and we would maintain some control there. I honestly doubt we’re going to see very many people lining up to buy land because we made it very clear we prefer a lease option. But if we do, we really want to see it leased, then purchased.”
Kevin Mosher said he was pleased to see options for both a land purchase and a lease in the proposal, since it didn’t appear the RFP would tie anyone’s hands and met the Assembly’s goal to “cast a wide net.”
The vote marks another step in a yearlong process to build a new haulout, a vital need in a fishing community. After the RFP is released, prospective individuals and businesses will have up to 60 days to respond. Halibut Point Marine will shut down its haulout this spring to use the property for its visitor-related business, a cruise ship dock.
The Rates and Fees Bid section of the RFP says higher lease or purchase price offers will receive a higher score in the judging of offers. Points will be awarded on other such factors as qualifications of the builder, the concept plan, the operations plan, and ability of the bidder to meet the project schedule.
Shipwright Jeremy Serka expressed skepticism that the RFP would lead to something that the community and the user groups want.
“It’ll be amazing if we can get something that actually works,” he said. He added today that he still plans to submit a response to the RFP, and is concerned that it will be more difficult to get bank financing without potential ownership of the land.
Another local group of fishermen also is planning to respond to the RFP. A letter to the Assembly from Jeff Farvour, a member of the group, stressed the importance of the city’s retaining ownership; that the equipment meet the needs of the fleet and other users; and that the city foster stability and growth for marine trades.
From the public, Richard Wein said the city may not get the outcome it desires under this RFP. He clarified today that he believes the city should retain control of the project, pursue low-cost development loans, and make sure a washdown is not “aspirational” – but required – in the RFP.
“We need to accept the reality there are minimum things they need to do to get this thing to work,” he said.
Friske Appeal
The Assembly granted an appeal to Andrew and Becky Friske, to allow them to apply for a sales tax refund for construction materials in the construction of their home at 420 Kramer Avenue.
The refund had to do with a city tax benefit, which refunds the sales tax paid on building materials if a house is completed within two years of the issuance of a building permit.
The Friskes applied for their building permit June 3, 2015. Construction was underway on August 17, 2015, when a portion of the house was destroyed in the Kramer Avenue landslide. Landslide-related problems delayed completion and occupation of the house until after the two-years allowed for the tax refund.
City staff explained in a memo and at the meeting that the city code doesn’t give them leeway to acknowledge the extenuating circumstances.
The Assembly was supportive of the Friskes’ request.
The motion approved unanimously was to grant the appeal “as equitable circumstances and reasons exist which warrant a determination that the Friske application for a sales tax refund is timely.”
The request will now be reviewed by sales tax staff with final approval going to Finance Director Melissa Haley.
“From my perspective, this is a perfect example of why you can appeal to the Assembly,” Mayor Steven Eisenbeisz said. “There are extenuating circumstances that come up that no one anticipated in which code does not offer staff the leniency to handle it. So this appeal did come forward.”
He thanked city staff for bringing the issue forward.
Other Items
Other items approved included:
-- introduction of an ordinance to spend $30,000 for professional services related to the potential sale of the old Sitka Community Hospital land and buildings, which may include surveys and site inspections. SEARHC has asked to purchase the hospital site and adjacent land owned by the city. SEARHC currently owns adjacent properties on Halibut Point Road, where it plans to build a 40-unit apartment building and clinic space. The professional services ordinance will be up for final reading on Feb. 9.
- approved writing off certain unpaid accounts with Sitka Community Hospital that are deemed uncollectible or not in the best interests of the city to continue to collect. The item was considered by the Assembly in executive session at the Jan. 12 meeting. Although no figure was given for the total amount to be written off, City Attorney Brian Hanson said today it would be available later this week.
-- a liquor license renewal for Pizza Express.
-- a resolution for an application for a $75,000 grant from the Department of Homeland Security to purchase and install a communications repeater at Mud Bay. Police Chief Robert Baty cited the need to fill the communications “holes” on the road system, which now includes the nine additional miles to Katlian Bay. “This repeater will cover all of the emergency response agencies in Sitka (police, fire EMS and search and rescue),” he said in a memo.
