M E M O R A N D U M

TO: Bill Popp, Assembly Vice President

Members of the Kenai Peninsula Borough Assembly

THRU: Mike Navarre, Borough Mayor

FROM: Lisa Parker, Planning Director

DATE: October 27, 1999

SUBJECT: A Resolution Approving Forest Management Sales Reports for Bear Run, Fritz Creek, United, Chakok, and Nikolaevsk Tracts

Prior to disposal of forest resources, the mayor is required, by KPB Code 17.50.035(A), to prepare a forest management sales report (FMSR). The assembly has authority to adopt resolutions under KPB Code 17.50.035(C). Adoption of the subject resolution will authorize timber sales within three tracts of land on East End Road and two tracts on North Fork Road.

Kenai Peninsula Borough adopted a Forest Resource Management Plan (FRMP) in 1986 as required by KPB 17.50.010(C). Prior to the adoption of the FRMP, Kenai Peninsula Borough had timber sales resulting in logging of approximately 600 acres in the Irish Hills/Reflection Lake area. Since the adoption of the FRMP, Kenai Peninsula Borough has had timber sales on 30 acres resulting in about 5 acres logged; however, the project is not yet complete. Reports from State sales proposals, reports to the Kenai Peninsula Spruce Bark Beetle Task Force, and discussions with State foresters indicate more than 90% of spruce trees on borough land are, or will be, seriously damaged by the spruce bark beetle infestation.

Current industry activity indicates a timber market. A contracting timber consultant has suggested $2.50 to $6.00 per ton stumpage royalty for some KPB timber sales on the peninsula. The State held at least five timber sales on the Kenai Peninsula in the last two years. It is reported that timber is being cut on the Happy Timber Sale. Caribou Hills Timber Sale was also successful, and some timber was cut and the project is planned for completion. Other sales have not received bids, including the Jones Timber Sale. In addition to specific timber sales requirements, the timber type and quality on the Jones Timber Sale along with lower timber prices probably discouraged active bidding.

The proposed timber sale involves five tracts totaling 1,507 acres. Three are on East End Road where the public has expressed concerns about fire hazard danger posed by dead or dying timber on Borough land near developed areas and access roads. Bear Run includes 235 acres in the midst of subdivisions; Fritz Creek is 282 acres adjacent to subdivisions and access roads; United has 480 acres close to East End Road. Nikolaevsk represents 190 acres of infested trees on the access road to the village of Nikolaevsk, and Chakok is a remote parcel of 320 acres.

All the sales are lump sum bids and no minimum bid amount is included in the FMSR; however, it is proposed no negative bids will be accepted. Lump sum bidding will preclude timber scaling or weighing requirements. Scale or weight practices are suggested as options to consider for over-the-counter sale proposals if the lump sum bid process is not successful.

Each of the timber sales is more than 40 acres so the Kenai Peninsula Borough and the timber contractor are required to meet minimum requirements of the Alaska Forest Resources & Practices Act commonly known as the Best Management Practices. This Act provides standards designed to protect the environment including water quality, riparian areas, and erosion control. The Act specifies practices for insect control measures, slash disposal and road construction. KPB Code exceeds State requirements for riparian area protection by adding an additional 200 feet to each anadromous stream wherein logging is not allowed unless KPB explicitly allows it after consulting with the Alaska Department of Fish and Game.

Reforestation provisions proposed are natural regeneration enhanced by 25% scarification. KPB Resolution 88-78 updated and amended the FRMP to include:

"Clear-cutting Silvicultural Method - Clear-cutting is a proven method of encouraging natural regeneration of spruce, which has been identified as a preferred species on the Kenai Peninsula. Soil temperatures are increased and nutrient cycling improved. Losses from wind-throw are minimized, and damage to residual trees is avoided. For overmature, decadent stands, the system is especially appropriate from a wood utilization, safety and harvest efficient standpoint."

Proposed harvest method is to apply a method approaching the Clear-cutting Silvicultural Method. At least two stems per acre are to be retained and all dead or dying spruce trees over six inches at diameter breast height (DBH) are to be harvested. All green uninfested spruce trees five inches DBH or smaller and all other tree species will be protected and not harvested.

State Forest Practices Regulation was amended to clarify the process used by the Division of Forestry to exempt landowners from reforestation requirements for insect-killed trees. It appears the sales will qualify for exemption with the possible exception of Nikolaevsk. Unless special provision is made for additional reforestation, Kenai Peninsula Borough will be responsible for replanting if State inspection reveals natural regeneration has not occurred within a specified time frame and the specified level in any area did not qualify for the reforestation requirement exemption.

Wetlands and/or anadromous streams are identified in all sales except for Bear Run. United Timber Sale includes wetlands and therefore is marked for winter logging only. Chakok includes the probability of a stream crossing and therefore is proposed for winter logging. Fritz Creek includes the possibility of crossing Fritz Creek if direct access is not available. The Best Management Practices provides acceptable means of stream crossing. The purchaser has sole responsible for access to the site and may be able to independently negotiate access with landowners.

Meetings with the Kachemak Bay and Anchor Point Advisory Planning Commissions were conducted prior to submitting the FMSR's to the Planning Commission. Comments included special care for logging near streams, extra care for slash to include burning or removal, protecting green trees and repairing road damage. KBAPC also expressed a desire to close or demolish roads so new vehicle access is not created.

The FMSR's were presented to the Planning Commission on September 27, 1999 and approved unanimously with recommended changes to be incorporated. Chakok and United Timber Sales are to be advertised as winter harvest only sales. The Planning Commission noted the FMSR for Nikolaevsk specifies winter logging only. On October 27, notices of the Forest Management Sale Reports were sent to property owners residing within a one-half mile radius of the proposed sites. This included a summarized FMSR and map along with instructions on obtaining a complete FMSR and an opportunity to submit comments by November 12 if they wanted the comments provided for the November 16 Assembly meeting.

The following requirements were suggested along with the staff recommendations. Prospective bidders will be advised of access issues at Chakok and Fritz Creek. Contracts will be accepted at Nikolaevsk only upon determination that the contractor provides a safe transportation plan. All skidding and landing operations within 300 feet of the Anchor River will be closely monitored. Logging within the 100 to 3 00 foot zone of the river at Nikolaevsk will be allowed if the contractor submits a harvest plan acceptable to KPB Coastal Management, KPB Planning Department and Alaska Department of Fish and Game.