Will Historic Coast Guard Ship Escape Scrap Heap?

Image from Coast Guard Cutter Storis 

Originally published by Vallejo Times-Herald, Jessica A. York - November 1, 2013

A storied former U.S. Coast Guard vessel sent from Suisun Bay's "mothball fleet" to Mexico for scrapping last week has raised concerns over the 71-year-old ship's final stop.

Environmental concerns related to ships in the federal government's Suisun Bay Reserve Fleet have been an ongoing issue for years, often boiling down to a battle between federal officials and environmental agencies.

The latest scuffle includes an emerging third party -- historical preservationists vying to rescue some of those ships from metal scrapping.

Last week, one such battle came to a head. Officials working for years to convince federal officials to hand over the retired U.S. Coast Guard ice cutter Storis to a nonprofit to serve as a museum ship were shocked first when the vessel was auctioned off by the federal General Services Administration this summer, then towed to Mexico last week. A spokeswoman for the General Services Administration did not return a call seeking comment on the issue Thursday.

At the urging of interested parties, the Environmental Protection Agency has launched an investigation into whether the Storis may contain toxin levels illegally high for foreign export, officials confirmed Wednesday.

The Storis -- used for decades for law enforcement, search and rescue and fisheries work in Alaska -- was sold to San Diego-based U.S. Metals Recovery LLC on June 28 for $70,100. There was an initial requirement that the vessel be removed from the Suisun Bay Reserve "Mothball" Fleet by July 12.

"On Oct. 21, EPA received information that the STORIS was potentially being exported by U.S. Metals Recovery to Mexico for scrapping and that the ship could contain polychlorinated biphenyls (PCBs) in concentrations greater than or equal to 50 parts per million," a spokesperson for the Environmental Protection Agency Region 9 wrote in an emailed statement. "EPA immediately began investigating to determine if the vessel contained PCBs, and if so, at what level. This investigation remains ongoing."

The ship has called the federally managed Suisun Bay fleet "home" since its 2007 retirement from the Coast Guard. A spokeswoman for fleet manager U.S. Maritime Administration referred questions about the ship's departure for Texas to the Coast Guard. Coast Guard officials locally and in Washington, D.C. were still looking into a reporter's questions on the issue Thursday.

Jon Ottman, a Michigan marine historian and consultant working with the STORIS Museum and Education Center officials, raised concerns that U.S. Metals Recovery seems to have no physical presence -- website, office phone or physical location -- over which to bring complaints about the out-of-country delivery.

He added that a man associated with the U.S. Metals Recovery and the sale, Mark Jurisich, allegedly asked nonprofit STORIS Museum officials for $250,000 to sell the vessel instead of scrapping it. Efforts to reach Jurisich were unsuccessful.

Prior to the auction in June, volunteers looking to preserve the Storis initially planned to bring the vessel to Juneau, Alaska, where it had spent so much of its career, and to become a museum ship and train young Sea Cadets. Later, an effort from Toledo, Ohio -- where the vessel was built -- took the lead. Also in the running for the ship were the California Ships to Reefs group, looking to have the vessel sunk and used as an artificial reef when word that the bidding process did not result in a buyer reaching the a minimum-set bid price.

The Storis "made history in 1957 when it led two other Coast Guard cutters through icy waters near the North Pole and into the Atlantic Ocean," and "became the first American vessel to circumnavigate the North American continent," according to Bay Area News Group articles written about the ship upon its retirement.

In 2012, the Storis was listed on the National Register of Historic Places with the help of a nomination penned by Ottman. The nomination notes that the Storis is one of the last remaining vessels that participated in the World War II Greenland Patrols.

For more information on the Storis, visit www.storismuseum.org.

Contact staff writer Jessica A. York at (707) 553-6834 or jyork@timesheraldonline.com. Follow her on Twitter @JYVallejo.

General Services Administration Sale of Historic Coast Guard Cutter Storis A Disgrace

Dr. John Bryan - Co-owner of US Metals Recovery, LLC.

You really have to hand it to the GSA - General Services Administration, for some of the people they choose to do business with in their online auctions. Take the former Coast Guard Cutter Storis, for example. A retired cutter listed on the National Registry of Historic Places after an impressive 64-year service record which includes being the first vessel to circumnavigate the north American Continent.

In June of 2013, the GSA put the Storis up for auction with a minimum reserve price of $100,000. On June 27, 2013 when the auction closed, there had been two bids submitted with the highest bid being $70,100, far less than the reserve. The GSA bent their own rules and accepted the bid of $70,100, submitted by US Metals Recovery, LLC. of San Diego. 

Company records have revealed that US Metals is barely two years old but, extensive research has not found a phone number listed for the company. There has been no records found that lists a physical address for the business. 

Records list the companies co-owners as Mark Jurisich and Dr. John R. Bryan, both of San Diego.

The California Secretary of State shows the LLC's status as:   Franchise Tax Board (FTB) Suspended/Forfeited

The GSA's terms for the buyer of the ship stated that the merchandise was to be removed within 10-business days from the date of the sale. The removal date was grossly ignored by not only Jurisich but, the GSA as well when a total of 120 days passed before Jurisich sent a tug to pick her up.

ONE HUNDRED and TWENTY DAYS! 

There must have been a valid reason the GSA could allow such a blatant breach of contract but, several calls and emails to the GSA seeking answers all went un-answered.

Perhaps the GSA would have declined to accept the bid from US Metals Recovery had they known that the young company was not an active California business. Perhaps the GSA would have scrutinized the integrity of the bid, the company and the two owners, Mark Jurisich and Dr. John Bryan.

Perhaps the GSA would have opted to reject the bid had they checked court records. If they had looked into it they would have discovered that US Metals Recovery, Jurisich and Bryan had been sued in San Diego County in April of this year. It comes as no surprise that Jurisich ignored the terms of the contract with the GSA because, the Plaintiff filed suit against them for.... Breach of Contract/Warranty. See the court record below.

Case Title:	NEXTGEAR CAPITAL INC VS. U S METALS RECOVERY LLC [IMAGED]
Case Number:	37-2013-00044031-CU-BC-CTL	Case Location:	San Diego
Case Type:	Civil	Date Filed:	04/12/2013
Category:	CU-BCW	Breach of Contract/Warranty

Plaintiff/Petitioner
Last Name or Business Name	First Name	Primary (P)
NEXTGEAR CAPITAL INC		P

Defendant/Respondent
Last Name or Business Name	First Name	Primary (P)
U S METALS RECOVERY LLC		P
U S METALS RECOVERY LLC		P
USMR		P
BRYAN	JOHN RODNEY
JURISICH	MARK ROBERT

Imaged Case

Documents are available for viewing online,

and at all Register of Actions Kiosks

Select [File Location] button above for location details

Microfilm
Microfilm ID	Location	Reel Number	Frame Number
This case has not been microfilmed.

The information below shows the company status with the California Secretary of State.

Business Registration | California (Foreign State)
California Secretary of StateData updated October 29, 2013Business Details

Business Name:	U. S. METALS RECOVERY LLC
Citizenship:	Foreign
State of Incorporation:	NV
Business Type:	Limited Liability Company
Mailing Address:	2102 HANCOCK STE 200 SAN DIEGO, CA 92110
Status:	Franchise Tax Board (FTB) Suspended/Forfeited
Secretary of State ID:	201009110222
Incorporation Date:	02/26/2010
Business Description:	USED CAR DEALER

Amendments

Number of Amendments Filed:	1
Total Pages Filed:	3

Note the business type they are listed under is "Used Car Dealer."
The GSA must have thought they were dealing with upstanding citizens, I would assume. It turns out that Mark R Jurisich was not born in the US and allegedly commented to the Storis preservation group that he did not care about the history behind the ship nor those trying to save it.

Going back a few years in the court records shows what might be considered a pattern of un-professional behavior with one of the owners, John Bryan. Public court records show Bryan as a Defendant in a civil suit for.... Breach of Contract. (see below)

Primary Name  BRYAN,JOHN	Party Type  Secondary or other defendant	Case Number  N10229	Filing Date  Apr 21 1978
Opposing Name  KERN & HEROLD INC	Case Type  Breach of Contract	Case Category  Civil Complaint	Court Code  North County

Court records also show Bryan named as the Defendant in a separate civil suit filed a year later for..... You guessed it, Breach of Contract. (see below)

Primary Name  BRYAN,JOHN	Party Type  Secondary or other defendant	Case Number  430346	Filing Date  Feb 14 1979
Opposing Name  DEIMLING,NORMAN	Case Type  Breach of Contract	Case Category  Civil Complaint	Court Code  San Diego

Had the GSA known what type of people they were dealing with, it would be noble of them to claim that people change and deserve a second chance. Note: Nothing suggests the GSA did anything to obtain any background information on the buyers. Had they looked, surely they would have discovered the civil law suit in 1996 where John Bryan was named as one of the Defendants in a case he was accused of.... FRAUD!  (see below)

Primary Name  BRYAN,JOHN	Party Type  Secondary or other defendant	Case Number  701638	Filing Date  Jul 5 1996
Opposing Name  ALLARD,BENSON L	Case Type  Fraud	Case Category  Civil Complaint	Court Code  San Diego

The GSA really should be commended for bending their own rules with the sale terms for the former Coast Guard Cutter Storis.
While the GSA had the option to turn the cutter over to the non-profit group Storis Museum, who had been working since 2007 with its plans to obtain the ship in order to make it into a museum and training tool for Naval Cadets... They chose to deny the group the chance to secure a piece of American history in favor of bending their own rules to do business with two men with histories of being sued for breach of contract and fraud!

The result of the GSA's choosing to conduct business with criminals has been the literal destruction of the former cutter Storis as it was delivered to Ensenada, Mexico on October 29, 2013 where it was sold for scrap.

To the General Services Administration I can only say... "Thank You! We expect nothing less of you."
(the previous statement was purely sarcasm.)
On a serious note, I will say in all seriousness....

"The GSA's handling of the historic Storis was an absolute disgrace and should be held accountable."