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MINUTE ITEM

21

REVOCAT~ON OF AUTHORIZATI.ON TO ISSUE PERMIT

01/17/90 w 20041 Pelkofer Louie ·

Calendar Item 21. attached. was pulled from the acjerula· 1>d:or ·Eo the meeting.

Attachment: Calendar Item 21.

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A 17

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CALENDAR ITEM

01/17/90 w 2004~1 Pelkofer Louie

REVOCATION OF AUTHORIZATION TO ISSUE PERMIT

APPLICANT: Segamb, Inc. 700 Ygnacio Valley Road Suite 350 Walnut Creek, California 94596

Segamb, Inc. applied for a permit to salvage the sunken. ship the 11 City of Rio de Janeiro", which lies in San Francisco Bay. The Commission, at the meeting of February 6, 1989, on staff's recommendation, authorized the issuance of the permit for survey and mapping purposes, and retrieval of an object or objects sufficient to positively identify the shipwreck, subject to Applicant's paymen~.of the necessary fees, filing ·of a bond, and obtaining insuran~e,. Additionally, Applicant was required to submit a plan of Jt~ survey objectives, since the "City of Rio de Janeiro 11 is a· h~)s.toric shipwreck· listed on the National Register of Historic ~laces.

Pursuant to P.R.C. Section 6309(h):

"Permits may be revoked by the Commission, after notice to the permitholder, at any time the Commission finds th~t the permitholder has failed to comply with the terms of the permit qr any law or regulation governing the permitted activity. An application for a permit may be denied by the Commission when it finds that the applicant has fai1ed to provide, for a period of 60 days, infotmation sp~cifically requested by the Commission which is nece•sary to compl~te the application."

Applicant was advised by letters of January 31, February 17, and May 12, 1989, of the requirements with which (he had to comply prior to the actual issuance of the perm~t.

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CALENDAR ITEM NO. 2 r(CONT'D)

Applicant was further advised by the letter of July 25th that staff would request revocation of the authorization if no action ~as taken within sixty (60) days. Applicant took no action to comply within the allotted period. Just prior to the Commis~ion's October meeting, Applicant contacted staff and requested additional tirrie. Staff agreed to Applicant's rl:!quest and the matter was taken off calendar. Applicant was granted until December 31, 1989 to submit the necessary information~ Applicant was agnin advised on October 18, 1989 of the information. ryeeded by staff prior to the issuance of .the permit.

AB 884: N/A

OTHER PERTINENT INFORMATION:

EXHIBITS:

1. Pursuant to the Commission's delegation· of authority and the State CEQA Guidelines (14 Cal. Code Regs. 15061), the staff has determined that this ·activity . is exempt from the require~ents .of the CEQA as a statutorily exempt project. The prqject is exempt because CEQA does not apply t~ projects which a public agenty rejects or disapproves.

Authority: P.R.C. 21080(b) (5) and ~4 Cal. Code Regs. 15270.

A. Letter of January 31, 1989 B. Letter of February 17, 1989 c. Letter of May 12, 1989 D. Letter of July 2S, 1969 E. Letter of October 18, 1989 F. Letter of November 16, 1989

IT rs RECOMMENDED THAT THE COMMISSION:

1. FIND THAT THIS ~~TIVITY rs EXEMPT FROM CEQA PURSUANT TO 14 CAL CODE REGS. 15270 BECAUSE CEQA DOES ·NOT APPLY 'TO PROJECTS WHICH A PUBLIC AGENCY RE3ECTS· OR DISAPPROVES.

2. REVOKE rrs· AUTHORIZATION TO ISSUE A SALVAGE PERMIT AS DESCRIBED HEREIN TO SEGAMB, INC.

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y•'<LENDAR.PAGE 1 3 1 I ~ .:vllNUTE PAG.E__;.;. 1 7 Q :-: ~:·w·...;.;..__.~·~·--·~o~·

File Ref.: W2004~

Mr. Gus Cafcalas Segamb, Inc.

....

700 Ygnacio Valley Road, Suite r5o Walnut Creek. Ca. 94596

Dear Mr. -Cafcalas,

By now you should haYe received notice of the Conuni:s:sion':s February S meeting. I have enclosed an extra copy of the agenda for your use. I still have not rec&ived a response to my December 12 letter, copy also enclosed.

Please return both copies of. the executed pe:cmit, memorandum· of agreenient and land description as soon ~s possible w~th _ ~ignatu.res notarized. The revi~ed Page 1 of the HOA.sent to you January 12 should be substituted into the MQA. Also provid~ a copy of the coi.·po!'ate .re:Solution authoriziri:g the execution on behal·f of. Segamb. and a check in the amount of· $1,025.

~ As explained in my December 12 letter, you will also need to

send th~ f~llowing information:

Encs.

l. List of ~pocific rese~rch questions ~o be answered f:om implementation of the project.

2. Evidence of Segarnb's financial ability t.o complete ·the project being permitted and lis~ of investors~

3. Evidence.of a~rangements.with, a pr~essiona1 cpnservation facility t.o conserve any artifact which. 'may lJe brought up . . Please 6al1 me it-(916)322-7823 if you have any ~uestions.

Sincerely,

~lo~~ I

B~t.t::i.~ Louie

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EXH1f31T - ;:t- !CALENDAR PAGE· ___ ._.1~3~2~-' . . - '171 jMINUTE PAGE---~~---~ ... ~------------

FebnJary 17. 1989

lo'ile Ref: PRC 7280.1

Mr. Gus Cafcalas !:cgi!mb, 1 nc . 100 Ycnacio Valley Road, Suite 350 Wa lnul Ct·c1~k, California 94596· 3822

Dear Gus:

Subject: Salvage Permit for City of Rio de Janeiro

.. This corrCSJlOndence will advise you that on ~·ebruary 6. 1989 0

the Slate Lands Con-;;aission authorized issuance of the above permit. The c2ocument will be signed on behalf of the Cammission, and yo~r copy will be tt'ansmitted to you. However, before we may take this action, you are requested lo.provide:

l. A surely bond in the amount of $10,900 executed on the attached Fot'rll 59.10 (or other collateral as explainad in Form 59.7).

2. A certificate of insurance stalihg there is liability insurance presenlly in affect for the activity un.der permit with a combined single limit coverage of not less than $1,000,000 p~r occurrence for A. bodily injury and property damage. · ~

The following assurances (a) through Ce) are required to be expressly stated on or attached to the certificate of insurance:

a) That. the State of California, ils offic~rs, agents, employees, and servants are included as additional insureds, but ·only insof.ar _as tbQ. operaU.ons -under this permit are conc!erned.

b) That the insurer will not cancel the insured's coverage without 30 days prior written notice to the State.

C) That the poiicy specifically identifies the permit by number·. PRC 7280. l.

d) 'That the Slate will not be responsible for any premiums o~ other assessments on the p~licy.

e) Thal the insurance coverage provided by th~ insured (Permit:tec) is primary and noncontributing.

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3. Pro<>f of financial responsibility, capability, ants solv'ency to complete the mapping and identification work au~horize~ ~by ~he permit, including a list of invest.ors and bu~get. · ·· · ··' ··

4. Check in the amount of $1,025 for the year's rent.

5. Resolution authorizing signatur~ by William Gibson on bebmlf of'

Se~mub.

Once l receive the above infat"'lcillion, 1 will iiave lhe p~t'tl\it executed on behalf ~£ the Stale.

";,l'!e . permit· ~~quires that y,ou provide us, _wit~ ~~~denc0 of an arrangemer.t. wilh a professionalcotfser\1~t:S.on.;.ncili:ty -to 4:0nset·ve'··any object which 1n2Y be brought up. Prior ~o the retrieval. of any object, you. will need to provide us with evidence of such an arrangement.

Also, enclosed are survey objectives outlining infot-mation tte ·would need to recommend approval of Phase 2 ~f your project - the actual recovery o{ ·it~ms ·f1·om the shipwreck. 'Ihc alternatives under each operalicm are listed in order o( preference with Altetnativc 1 providing the best information. Alternatives 2 and 3 may not provide sufficient infot-raalion and may result. in del1111s in oblaining furt.h~r approval~; the~e have been J.}.sted in the event Alternative 'l is not possible due to technical reason.s. If you have thought of other -methods wnich would accomplish the same objectives, we wou~d be glad lo discuss them. with

you. . You may want t.o consult. with your marine archeologist. r~gard.ing the

encJ.osed su1·ve.y objectives~ When you ti.ave decided on a course of act.ion, please notify us of your plans and schedule. 'I would strongly suggest a meeting with us to go over your proposed survey plans. You will also need to notify us ll\irly days in advance of the con:meucement of any opct'at.ions so we .can .:mai<e arrangements to have a State monitor onboard. · ~ --- ·- .. - .. -

l look forward to hearing from you soon.

Very tt"UlY yo~rs,

f)fl • )

"H- V -1',. _.. ' '-! (. l 1 I) f"'l! U-\._

BETrlt K. LOUIE Land Agant ( 916) 322.:. 7823

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SURVEY OBJECTIVES FOR THE RIO

The survey objectives have bee~ divided into th~ee operations: <1> Identification, <2> Exterior Search for Entry and <3> Interior Search for Targets. These operations "can be performed separately or simultaneously. The method to accomplish the survey objectives <e.g. ROV vs. diver> will be left up ~o the Permittee, although some obJ•ctives may be m~ra difficult ~o Obtain Hith certafn methods.

U1~der each operation" alternative>:; have been preser1ted in order of preference. For e~:ample, if the Permittee were to accomplish the objectives i·n Al ternC:lti ve l unc.'ior. each -operation, State Lands Comndssion staff woU.~d· probably have lfttle difficulty in recommer1di ng approva:\ for the ne>:t ph.a~e ~of the project. actual retrieval of objects.

If, for technical reasons, the !Penmittee must fall back on the obj~ctives in Alternative 2 und~r these operations, there is a rit>k of delay in obt'aining f-urtfier permits. Similarly, the objectives in Alternative 3 are feast preferable and carry the ,. greatest risJ~ of delay in further e1pprovals. Hcwever these alternatives are listed to provide the Permittee with flexibility if t~chn1cally necessary. The·Per~ittee should understand the l•~tter altern.:.tives may not provide a~equate information' for approval of the secqnd phase.

OPERATION: IDENTIFICATION

Alternative 1 <Most Preferable> An object, photograph or Video of a clearly named object in obvi.ous association l>lith the wreck site. Examples of object~ meetinq tho critecia '"JO.ul d be tao~•, --.?t_er.n ,_ 07:. _pi.l ct house namepl aies, named ~ \esavi ng gear, or named passen~er service .qear.

Alternative 2 <Less Pre.fer-ab! e> - If Alternative 1 cannot be obtained, then numbered or patterned objects th~t tan clearly and positively be uniquely associ~ted with the Ri~, such a~ pilothouse equipment \compasses, telegraphs, wheels, etc.> '"'ould be the ne>:t acceptable su!;istitute. Engine room equipment or pat terned passenger service i terns mii\y al.so provide evidence. However, these would all r~quire external doc:umentati on ·l:o prove them unique to thi a· vessel o

Alternative 3 <Least 0

Preierable> The last alternative would be a photomonta9e or maps with a sufficient number of lde~tification keys to assure SLC st~ff that the ~•ssel found is the Rio. Points to match include straight stem, cruiser stern;- single stack '.1just forwelrd of amidships, d~ckhouse divided aft, ventil~t6r grouping around stack, or low pilothouse just abaft th~ foremnst. At least four, and

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pr~ferably five, of these positively identified. s:hara~t~ristics should be

·-.,. .......... ~- .. -.. -· Alterhativ·e 1 <Most Preferable> Photomont.age. or yideo 'sho~1i ng. 6.t"a'rboard side of deckhouse struc:ture from stack aft to main salon entrance. The condition of Pureer•s cabin and door should be clearly indicated, as well ~s the immediately SLlrroundi ng decJ, C\re?a, i llC} Udi ng ~Ctll.al Or potential blockages.

Aak:.~nati.ve:. · 2: <J-es's. · Pre:,:e"rabl e) ·~ - Sk~'tch - ma:p_ ._.,;J;o:·iin_g f"ur.s'ei-"· ~- .. c".~b.i :...- an9 entra_nce . w·i t.h. aJ ternat.e .entry .points i hdi c:ated and·- poteh'!;i a_l probi ems wi t:h each en"try point sl-.01·111. Position of .-1reckage and description of necess~ry removal techniques must be .sho"m on the map. l•Jrftten br recorded narrative should ac~ompany map to clearly ~~scr,ibe actue\l condi ti ans on the w·recJCs surface.

Alternative 3 <Least Preferable> - lf Pursi:r 's cabin \is tot.ally blocked or damaQed bevond· recoqnition., then Phot()s and/o,... maps c~ intended entries!- and methods of ~m.trv ~u~t: b;e supplied, along with mitigation Plan to minimi~e physical damage to the wreck site.

OPERATION: lNTEi'UOR SEARCH FOR TARGETS

Alternative 1 <Most Preferable> - Photos or videos sho~i'ng condition of Purser·~ office •nd cabin, including ~ny ~sf~~ and sto.wage of silver bars, if any. Include maps; showing proposed routes a-1- tmtry and ~gr-ess, including "any· altern,ate routes. Show the wid~hs of the entry points ahd safes. Sho_w· any identification c;>f s• lver' badi <mint marks, chops, ~t~.>-along with size and num~er of bars ciearly present.

Alternative 2 <Less Preferable> 'Sk~1tch maps indicating. conditions in Purser's office nnd cabih, showing posi~ion and conditi~.n of any safes 'or other recoverables. En·tr'y and exit portals must be marked on map, -along trdth w~dths, and potential obstacles. _

Permittee should notify the State Lands Commission prior to beginning any ~'1orS: on the wreci~ a5 required by Permit PRC 72EJO, as «-Jel 1 as informinq the Commis:Sion of the schedulinq and proposed method of operation. If P~rl!li ttee trn.~ other c:il terr,_.t i ves not listed that l'ilOLtl d ac.:c:1:11no.t 1 sh the same ObJ~ct1ves. they can be d1scu~•ed with Commission ~taff.

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Mr. w. E. Gibson seqamb. inc. 700 Ygnacio Valley Road Walnut Creek. California 94596

Dear Mr. Gibson:

May' 12. 1999

File Ref: PRC 7280.l

This is in response to your letter of April 24, 1989 c

Enclosed is a copy of the permit that was approved. The original will be siqned on hehalf of the State when we receive the insurance. :>ond. and other infouriation reque~ted in my February 17 letter.

Paragraph 28 of the petmit requires Segar.ab to provid~ a $10.000 surety bond o~ other ~ecurity device acceptable to the State tc quarantee perfQruance of the permit terms and conditions. The bond- form we sent was in error. I ,have enclosed a corrected form which needs t~ be signed and returned. , t."

Paragraph 27 of the permit requires Segamb to obtain liability insurance not less than $1;000.000 combined sinqle limit covera9e. ~ne liability insurance is required to protect the State aqairi~t bodily injury and property damage in connection with yout operations under permit. The lhib7ility insurance cannot exclude watercraft liability and such'cov~rage sho1_itd !:d stat.ed on the certificate of insurance. alonq with assur~nces (a) ttu:ouqh {e) contained ~n my previous let1;~_;. You may want to show your insurance aqent our ,,, permit conditions.- If ne oi.- she has -any "questions. they can contact nie df1.i:ectly.

Rec;ard~.n~g Item 3 in my February 17 lettet. ·we would like docurnentatioil such as a ~?Udget showing your esti1nate of ·the cost of this pha.se of ,your project. ir.cludinq estimated costs of survey. mappiilq, ct.nd identification .. ,,,ork. cost of conserving any object which i:~ brouqht. up for ship identification purposes. costs of crew .~~d ~guipment, ate. In connection with these estimated costs. we would like documentation ~howing Seqarnb's ability to pay for theoe, anticipated expenGes, such as a certified financial statement, and· a list of investors.,·· i'f any. The Plain purpose of tnis cequirement is to assure the State that the permittee will be able to complete this phase of the project~ (See Paraqrapb II A of the Memorandum of Agreement. attached to the salvage permit.)

-,

Have you decided on a ,nethod to accomi>.li~_h the -survey objectiv~s discussed in .the outline attached to my February 17 letter? \

....... .. . .... ·Please call me at \916) 322-7FJ23. if' yo_u are still not

cleat about the information we, are asking for. ···

Sincerely •

., . BETTY K •. ·LOUIE .• , • ; Senior ·La!)d1 ·Agent

Enclosures

~c: Kirk Walker L ~~::r ·Pelkofer

7S99l

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·a~'in:'~·:·eoMM?asxon" ·-· · ·· 1&01 13Ta' S'rm.~ . , .. SACIUUmm'O; CALIFORNIA ·95814

Mr. Wu E. Gibson ·segamb, :tnc. 700 Ygnacio Valley Road Walnut creek, CA 94596

Dear.Mr. Gibson,

July 25, 1989

File Ref.: PRC 7280.l ,

.·

Subject: salvage Permit for the City of.Rio de Jan~iro

As a followup to !D~ February 17 and May 12 letters. (c:opies attached, along with b~nd·form) I still have not received the rent and·other necessary documentation.

We have executed the' permit as of this· date, but will not issue i~ to you until you have supplied the items listed in my February 17 letter.

Please send us· the infQrmation we have asked for as soon as possible s~ that we may issue you the permit. If we do no~ receive all of the .required documentation w!thin sixty days of r..he d~t~ of this letter·, we· will recommend the Commission revoke its authorization. ·

Attachments ~·-

Certified Letter POl 5219554

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s~nc:erely,

Betty R. Louie· (9i6) 322-7ff23'"

·.

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£ X /./iBIT - lJ i CALENDA.R'PAGE-· _ .. 1'"-i"3~9~-'" 178

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Mr. William·E. Gibson segamb, Inc. · 700 Ygnacio Valley Road Walnut Creek, CA 94596

Dear Mr. Gibson,

October 18, 198~·:

. _r:~1~ :~e.f. :·~2·0041. :.

I: :t:i~ve -received y9ur· ·l;etter.-of · Se:pt;embe:i; 28, ;19~~. ·As .Y.OU know from my prior correspondence, 1;:here are ·a number of things, in additipn ·to .insurance and bond, ~hat·we have aske~ for.plµ'~uan~ t? the. t-el.-ms of -the permit. Nothing has ever been received from Segamb. . .

Your letter indicates you are having difficulty obtaining ~iability insurance and ,bonri. If you will send us the 'required insurance certificate and bond as soon as you have a· contractor, but nqt less than 30 day~, be~ore commencement of opera·.tions,. it will be satisfactory. Assur.ances. (a) through (e) specified in my Febrµary 17, 1989 letter -need· -~o_ be stated on the insurari~~ c~~tific~te. ·GOI!llllenc::ement·o~ pnsi~e adt.iviti~s cannot occur witho~t insurance and bond coverage acceptable to the State.

The other items I have asked for should have been obtainable. It has been eight months since the commission·approved the permit but the fees and information I have requested· have never been provided by Segamb.

Again, Segamb has been asked to provide:

l. Check in the amount of $l:, 625·~

2. Resolution authorizing William Gibson to execute the permit on behalf of Segamb.

3. Proof of ~inanacial responsibility, capability and· solvency including.Segamb's most recent certified financial statement, project budget and list of investors, if any.

4. Survey objectives (see my letter of Febru~ry 17, 1989 with its attachment) and project schedule.

Ws will give you additional time to send in the above items If we do not receive this information by December 31, 1989, we

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. "ll.LENOAR PAG.E

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will recommend that the conr.nission revoke its.authorization at its next regularly scheduled meeting. By then, Segamb wil1 have had a nearly a year to find its contractors and investors since ·the commission's original. authorization.

cc: Peter Pelkofer Kirk walker

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sincerely,

Betty Louie sr. Land Agent (916)322-7823

~t\LcNDAR ?AGE ----r--­.. m'1UTE. PAGE;;..·---------

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Dear Mr. Gibson,

- - . - ,. .. - ~ .. •. . ": ~

_ Nove.mb~r i6,,. 1989 - .. -"'" "-"• ... . . .,

._ . :~ ,"r:iJ~. P..ei: ~.: .'i>Rc 72s o .1 \- ~ . . \.... . ~

This is a follow up to my October 18 letter which listed the fees and info~ation we still needed. As-I had.eY.plained over ths phone to Guef ..iafcalas,. we need evidence that you ·are ·activ~ly pursuing the project and that progress is ~eing made to complete it. .

If we have not· receiv·ed the fees and other information requested by the end of Deceniber, we will reschedule the calendar item to c~nsider r~vokinq Seqamb's salvage permit for tlie neit commission meeting.'. It is important that you send 'US thfj. information we' need as soo.n_ '~.?;,possible and keep tis informed, on a regular basis, of the status of the project. We look forward to hearing from you. · /: · •

cc:. Peter Pelkof er Kirk wa~ker- ~-

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sincerely, a ? •

r.>.1,w{ lir~,~ Betty Louie (916)322-::7823

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