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HomeMy WebLinkAbout03022011 PACAB PacketPort and Commerce Advisory Board Regular Meeting March 2, 2011 Council Chambers Noon SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeti March 2, 2011 12:OOPM COUNCIL CHAMBERS Ron Long, Chair Board Member Term Expires 07/2011 Bruce Jaffa Board Member Term Expires 07/2012 Deborah Altermatt Board Member Term Expires 07/2013 Daniel Oliver Board Member Term Expires 07/2012 Daryl Schaefermeyer Board Member Term Expires 07/2012 Robert Buck Board Member Term Expires 07/2012 Bob Linville Board Member Term Expires 07/2011 Phillip Oates City Manager Kari Anderson Harbor Master Suzi Towsley Executive Liaison 1. 2. 3. 4. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. AKRR Representative- Louis Bencardino B. Harbormaster Report —Kari Anderson 5. Citizens' comments on any subject except those items scheduled for public hearing. [Those who have signed in will be given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this agenda item.] 6. Approval of agenda and consent agenda [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a Board Member so requests. In the event of such a request, the item is returned to the Regular Agenda.] City of Seward, Alaska PACAB Agenda January S, 2011 Page 1 7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS — A. City of Seward State capital funding request information........... .........Page 3 8. UNFINISHED BUSINESS 9. NEW BUSINESS A. Set topic March 16 work session topic as " discuss updates to the SMIC Development plan......................................P 2 ..................................................... age 3 B. February 2, 2011 Regular Meeting minutes.......... ........Page 24 .......................... 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required) - A. Sikuliaq Community Presentation Flyer.......... ............................ ... • . age 28 B. WTC "Passport to profit" article .............. g 29 11. BOARD COMMENTS 12. CITIZEN COMMENTS [S minutes per individual - Each individual has one opportunity to speak.] 13. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS' COMMENTS 14. ADJOURNMENT Guy o] Neward, Alaska PACAB Agenda January S, 2011 Page 2 Recipient Purpose Seward 1. Moving The Home Ports Of The CDQ Fishing Fleets From Seattle to Alaska Seward 2_ Cruise Ship Head Tax For Building A New Water Storage Tank (Reappropriation) Seward Marine Center, SFOS, UAF 3. Mooring Dolphins And Dock Improvements At Seward Marine Center Seward 4. Cruise Ship Head Tax For Improving Restrooms In The Seward Harbor Area Seward 5. Electrical Interconnect And Reliability Improvements Seward Senior Citizens Inc. 6. Kitchen Expansion Project 2011 Seward 7. Cruise Ship Head Tax For Extending The ADA Accessible Boardwalk Alaska SeaLife Center 8. Court Yard Sail And Awnings Seward 9. Upgrading The Alutiq Pride Shellfish Hatchery And Expanding Shellfish Aquaculture In Alaska Alaska SeaLife Center 10. Design Ted Stevens Gallery And Arctic Species Exhibit At Alaska SeaLife Center Seward 11. Cruise Ship Head Tax For Improving The Cruise Ship Pedestrian Corridor In Seward Seward 12. Repair and Replace Electric Transmission Line Labor & Workforce Dev 13. Alaska Vocational Technical Center Capital Projects Amount 400,000 1,992,000 2,000,000 225,000 4,000,000 125,000 25,000 470,000 150,000 250,000 500,000 1,500,000 1,200,000 Project Title: Seward - Moving The Home Ports Of The CDQ Fishing Fleets From Seattle to Alaska TPS Number: 56209 Priority: 1 Agency: Commerce, Community and Economic Development Grants to Municipalities (AS 37.05.315) Grant Recipient: Seward FY2012 State Funding Request: $400,000 Future Funding May Be Requested Brief Project Description: Economic Analysis, Survey, Geotechnical Investigation, Preliminary Engineering, and Permitting to establish the home port for the CDQ fishing fleets at Seward, Alaska Funding Plan: Total Project Cost: $405,000 Funding Already Secured: ($5,000) FY2012 State Funding Request: ($400,000) Project Deficit: $0 Explanation of Other Funds: Since 1982, the City of Seward has obtained approximately $35.72 million in Federal or State grants, appropriations, and City bonds to construct a basin, ship lift, and ship repair facility at the Seward Marine Industrial Center. This funding significantly reduces the cost of contructing the infrastructure to begin home porting the CDQ fishing fleets in Alaska. The City of Seward also invested $5 thousand this year to conduct the initial engineer and economic scoping analysis. Detailed Project Description and Justification: After receiving a request from Coastal Villages Region Fund (CVRF is one of six CDQ Groups) to assess the possibility of relocating their home port from Seattle to Seward, Alaska, the City of Seward obtained the services of PND Engineers, Inc. and Northern Economics to conduct a scoping analysis. Their analysis provides an estimate of the cost of an Economic Analysis, Survey, Geotechnical Investigation, Preliminary Engineering, and Permitting to be $400,000. These actions would be completed during the period July 15, 2011 and September 15, 2011 and establish the basis for bonding or other grants and appropriations to construct the home port infrastructure that would ultimately meet the needs of all CDQ Groups. Since 1982, the City of Seward has obtained approximately $35.72 million in Federal or State grants, appropriations, and City bonds to construct a basin, ship lift, and ship repair facility at the Seward Marine Industrial Center. The Center is within the city limits on the eastern shore of Resurrection Bay. This infrastructure provides an essential foundation to meet the requirements for home porting the CDQ fishing fleets is Alaska. If this infrastructure were not available the estimated cost of approximately $33.7 million to provide the infrastructure for home porting CVRF in Alaska would would be twice that amount. Moving the home port of the Coastal Villages Region Fund (CVRF) fishing fleet from Seattle to Alaska is a historic opportunity. This is a longstanding goal of many prominent Alaskans that began with the Magnuson -Stevens Act of 1976 and the Community Development Quota (CDQ) Program that began in December of 1992. The vision of the recent Senator Ted Stevens and others saw the Magnuson -Stevens Act of 1976 and subsequent amendments to the Act as opportunities first to Americanize the fishing fleet in Alaska, secondly to provide fishing quotas to the communities surrounding prime fishing areas, thirdly to reinvest profits to produce jobs and grow the industry, and finally to Alaskanize the Alaska fishing fleet. In considering moving the CVRF home port from Seattle to Alaska, the CVRF Board of Directors and staff established the following essential requirements: 8:48 AM 2/11/2011 -- deep water year-round ice -free port -- sufficient space and depth of water to construct a half -mile of dock for mooring, loading, and servicing deep draft and other marine vessels -- sufficient land upland to construct warehouses and offices -- existing ship repair and maritime support facilities -- existing maritime training and licensing facilities -- road, rail, and air access In examining ports across Alaska, only the City of Seward on Resurrection Bay met all their requirements. It is a deep water year-round ice -free port. It has the space on the water and upland to construct the half -mile of dockage to meet current needs, and room to expand in the future to meet the needs of the remaining 5 CDQ groups. It is the home of AVTEC where maritime crews receive training, licensing, and recertification of maritime skills. It has a major ship repair facility, Seward Ship's Dry Dock that has the capability of lifting and repairing the largest 341 foot CVRF fishing vessel. It has a 250-ton travel lift and upland storage and maintenance space for smaller vessels at the Seward Marine Industrial Center. It has an existing maritime and fishing industry. It has road, rail, and air access and close proximity to Anchorage. Project Timeline: Project Kick -Off July 15, 2011 Survey Layout September 15, 2011 Geotechnical Report October 31, 2011 Draft Economic Report December 1, 2011 Permits Prepared and Submitted September 15, 2011 Final Economic Report February 1, 2012 Preliminary Engineer Report February 1, 2012 Entity Reponsible for the Ongoing Operation and Maintenance of this Project: City of Seward Grant Recipient Contact Information: Name: Phillip Oates Address: 410 Adams Street (P.O. Box 167) Seward, AK 99664 Phone Number: (907)224-4047 Email: poates@cityofseward.net This project has been through a public review process at the local level and it is a community priority. 8:48 AM 2/11/2011 ,tv elo s ,PORK FISH Noq';- February 7, 2011 Coastal Villapes Reaion Fund 71 1 11 Sheet, Suite 200. Anchorage, Alaska 99501 . Phone 907,278.5151 . Fax 907,278.5150 The Honorable Willard E. Dunham P.O. Box 167 Seward, AK 99664 Dear Mayor Dunham, We have a historic opportunity at hand — moving the home port of the Coastal Villages Region Fund (CVRF) fishing fleet from Seattle to Alaska. This is a longstanding goal of many prominent Alaskans that began with the Magnuson -Stevens Act of 1976 and the Community Development Quota (CDQ) Program that began in December of 1992. The vision of the recent Senator Ted Stevens and others saw the Magnuson -Stevens Act of 1976 and subsequent amendments to the Act as opportunities first to Americanize the fishing fleet in Alaska, secondly to provide fishing quotas to the communities surrounding prime fishing areas, thirdly to reinvest profits to produce jobs and grow the industry, and finally to Alaskanize the Alaska fishing fleet. It is conceivable that the move of CRVF to Alaska would encourage the other 5 CDQ Groups to relocate their home ports to Alaska as well. Please allow me a moment to introduce you to the CDQ Program. The CDQ program allocates a portion of the Bering Sea and Aleutian Island harvest amounts to CDQ groups, including pollock, halibut, Pacific cod, crab and bycatch species. The CDQ program was granted perpetuity status during the 1996 reauthorization of the Magnuson -Stevens Act. Our Coastal Villages Region Fund has become the largest of the CDQ groups. We may be the largest Alaskan owned and Alaska based Seafood Company in Alaska's 100+ year history of commercial fisheries. CVRF is owned by 9,400 native Alaskans from the beautiful west coast of our great state. We are projected to generate about $100 million in seafood sales in 2011. In the 1990s when the Federal government allocated most of the Bering Sea to Seattle and Japanese companies it gave Coastal Villages 2% of the fish. Over the last decade we have gone from zero to nearly a quarter of a billion dollar balance sheet. And we have become the largest private - sector employer in the Kuskokwim Region. CVRF offers fishing and processing jobs for more than 1,000 of our residents each year. We offer scholarships and summer jobs to our youth. We have become the largest Alaska based harvester and processor of seafood in the Bering Sea. Coastal Villages provides hope, fish, and work. To provide the regional jobs Coastal Villages owns and operates a fleet of large fishing and processing vessels in the Bering Sea. With success our Bering Sea fleet has become quite big — it costs $2 million to fill up the fuel tanks of our fishing fleet one time; we pay the crew more than $10 million each year; we have more than 250 crew members including skippers who make more than $300 thousand each year and entry level jobs that pay more than $50 thousand each year; we spend between $5 million and $10 million each year on maintenance; we spend approximately $20M annually in Seattle for moorage, vendor support, and maintenance; and we spend approximately $2M per year to fly crews to and from Alaska and Seattle. This is money that should be spent in Alaska, not in Seattle. There are no harbors on the Alaska road system big enough to moor our entire fleet of vehicles. We need half a mile of dock space to park our vessels; we need 20,000 square feet of warehouse; we need 5,000 square feet of office space; we need 5 to 10 acres of fenced yard each year for equipment and staging; we need vendors to repair propellers and vessels, weld and paint, service electronics, mend fishing gear, repair the 50 diesel engines aboard our vessels, provide packaging for seafood products, provide fuel, provide Marine safety training, provide groceries and provisions. In other words we need in Alaska all those things that Seattle vendors have been providing for the last 50 years for the fishing industry. We need your help to Alaskanize the Bering Sea fisheries. Coastal Villages has 100% ownership of 8 deep draft vessels ranging in length from 113 feet to 341 feet and 10 other tenders, longliners, and a tug. In partnership with another CDQ group, the Norton Sound Economic Development Corporation, we acquired another crab vessel and 5 pollock trawlers just last week. We will continue to buy more of the Seattle based Alaska fishing vessels in the future because the Federal CDQ Program requires all 6 CDQ Groups to reinvest in the Bering Sea. It is inevitable that our recently acquired fleet will gravitate north to its owner for the same reason that many of the vessels still go south to their Seattle owners and for the same reason that before the Americanization of our fisheries that began in 1976 the vessels used to go home to cities in Asia. In considering moving our home port from Seattle to Alaska, our Board of Directors and staff established a set of criteria that are essential to our success. We identified the following requirements: deep water year-round ice -free port sufficient space and depth of water to construct a half -mile of dock for mooring, loading, and servicing our deep draft and other vessels sufficient land upland to construct warehouses and offices existing ship repair and maritime support facilities existing maritime training and licensing facilities road, rail, and air access In examining ports across Alaska, we concluded that Seward on Resurrection Bay meets all our requirements. It is a deep water year-round ice -free port. It has the space on the water and upland to construct the half -mile of dockage to meet our needs, and room to expand in the future to meet the needs of others that will surely migrate north, including the other 5 CDQ groups. It is the home of AVTEC where our residents receive training, licensing, and recertification of maritime skills. It has a major ship repair facility, Seward Ship's Dry Dock that has the capability of lifting and repairing our largest 341 foot fishing vessel. It has a 250-ton travel lift and upland storage and maintenance space for our smaller vessels at the Seward Marine Industrial Center. It has an 2 existing maritime and fishing industry. It has road, rail, and air access and close proximity to Anchorage. By working together we can accelerate this process of Alaskanizing the part of the Alaskan fishing fleet active in the Bering Sea. We look forward to working with you to achieve this historic opportunity. Quyana, John O. Mark, President Coastal Villages Region Fund 00 1:NGINFI"RS, INC::. February 9, 2011 Mr. Phillip Oates City Manager City of Seward PO Box 167 Anchorage, Alaska 99664 Subject: SMIC Basin Concept Design and Economics Study Dear Mr. Oates: 111015 As requested by the City of Seward, PND Engineers, Inc. (PND) has performed a scoping analysis for a proposed boat harbor located at the Seward Marine Industrial Center (SMIC). The proposed boat harbor would be developed as a commercial craft facility with the primary tenant being the CDQ fleet. Vessels would be in the range of 40 feet through 350 feet. The CDQ fleet is seeking to home port in Alaska, and Seward is ideally situated to support this fleet. Seward's infrastructure can provide the necessary support and the SMIC area provides the necessary real estate for development. By utilizing and improving the existing infrastructure in Seward, the benefits of the project will include: • Growth of the overall Alaskan economy • Provision of more Alaskan jobs • Protecting Alaskan resources • Providing a means to further enable the development of the private sector in Alaska • Keep Alaskan owned vessels in Alaska Attached Figure 1 depicts conceptual layouts of the proposed facility and represents the initial configuration for data collection and design. It is likely that the configuration shown will be modified as the design is developed and the fleet characteristics become better understood. The facility has also been shown in phases to allow development as demand grows. Phase 1 would develop the existing SMIC basin into a calm water harbor and maintenance facility. It is believed that this concept would accommodate 30 vessels or more, depending upon length, with moorage on the unprotected (north) side of the proposed dock for vessels over 300 feet. Phase 2 is shown north of the current SMIC basin and could be built as a protected harbor accommodating approximately 60 vessels, depending upon size. Phase 3 would represent a final phase that could be developed if and when the Phase 2 area became fully utilized. Other potential locations may also serve the needs of Phase 3 and could also be examined, but the location shown is presented for concept level consideration. In order to progress development of this proposed facility, the first step in the process would involve economic analysis, field data collection and preliminary design. The economic analysis would be performed to identify economic benefits of the proposed project and to identify the optimum project scope based upon the economics. Through the economic analysis, the concept in Figure 1 will be Page 1 of 3 1506 West 3611' avenue • ANCHORAGE, ALASKA 99503 • Phone 907.561.1011 • Fax 907.563.4220 Page 2 February 9. 2011 SMIC Basin Concept Design and Economic Study modified and tailored to best fit the demand and provide optimum benefits. The estimated cost of this economic analysis is $85,000. Parallel with the economic analysis, a field data collection program will be conducted to advance the engineering design effort. Geotechnical information will be gathered to support cost estimates of project components and to be used throughout project development. Survey information will also be gathered to support the project, consisting of bathymetric and uplands data. For the initial project development, the bathymetric survey is proposed to be performed manually, while uplands data will be gathered using LIDAR. The LIDAR data is believed to be sufficient for initial design and can be supplemented with ground survey where more precision is found to be required as the project advances. LIDAR will provide a more cost effective method of obtaining uplands topographic data over the large area proposed for the project. PND has researched available data as a portion of this work scope. A good amount of geotechnical data has been developed in the vicinity of SMIC and will greatly reduce the required amount of additional data that would need to be gathered. Survey data, particularly bathymetric data, is limited however and would need to be gathered in whole to support the proposed project. Geotechnical work will be performed primarily to support development of Phase 1 only, while survey data will be gathered over the entire project site to be used throughout development. The estimated cost of the geotechnical program is $135,000, while the survey data gathering is estimated to require $60,000. Preliminary engineering design will be performed in conjunction with the economic study and in support of project permitting. In order to develop the data necessary for permitting, the design will need to be advanced to a preliminary level. Permitting of the project represents possibly the critical path as related to overall project construction schedule and would need to commence as soon as possible to allow the development. It is recommended that engineering and associated permitting focus only on Phase 1 in order to expedite the initial development. Phase 1 generally lies within the existing SMIC boundary and, as such, should be a much easier and quicker scope to permit. However, it may also be desirable to start the permitting process for Phase 2 soon after receiving the Phase 1 permit in order allow sufficient time for development and receipt of these permits. The estimated cost for preliminary engineering and development of permitting documents is $120,000 for Phase 1 only. The estimated cost for permitting does not include the actual permitting effort and it is anticipated that the permitting documents would be submitted upon full approval of the project. The total estimated costs for these initial project expenditures are as follows: Economic Analysis $85,000 Survey $60,000 Geotechnical Investigation $135,000 Phase 1 Preliminary Engineering $110,000 Phase 1 Permitting SM000 TOTAL $400,000 PND has also developed overall Phase 1 project costs in an effort to assist in future planning. The total construction, engineering, permitting and management costs are estimated to be $34 million with detail as provided in the attached estimate. This estimate should be considered relative order of magnitude (ROM) at this time and will be further developed during the initial efforts. Page 3 February 9. 2011 SMIC Basin Concept Design and Economic Study An anticipated schedule for construction of the Phase 1 scope of work would be similar to the followuug: Initial Funding Appropriation and Project Kick -Off Survey Layout Geotechnical Report Draft Economic Report Final Economic Report Permit Documents Prepared and Ready for Submission Obtain Project Funding and Begin Final Design Submit Phase 1 Permit Application Complete Engineering Design Receive Project Bids Award Construction Contract Begin Field Construction Complete Phase 1 Construction July 15, 2011 September 15, 2011 October 31, 2011 December 1, 2011 February 1, 2012 September 15, 2011 January 1, 2013 April 1, 2013 September 15, 2013 October 30, 2013 November 30, 2013 February 15, 2014 December 15, 2014 PND appreciates the opportunity to assist the City of Seward with this exciting project. If you have any questions regarding the attached information, please contact us. Sincerely, PND Engineers, Inc Anchorage�Office John W. Pickering, P.E. Senior Vice President Attachments: Figure 1 --- Existing Conditions Figure 2 — Conceptual Layout ROM Cost Estimate Northern Economics Proposal INV 200 0 200 400 600 FEET SON i�9111 a�.r�ewR'• e.u�. nro.n .. wa e+A, �ir t5na Wct ]Nh A�rnuc t� aaw roa; d n.. Tpn mw+n A. h.o A ka 99%3 © 1 ro'. In M1. in ..wvr i Phonc miss! l011 ENGINEERS, INC. SEWARD SINK BASIN CONCEPTUAL LAYOUT Figure 2 SMIC Expansion Scoping City of Seward 2/9/2011 SMIC Expansion Scoping PND Project # 111015 ROM PROJECT COST ESTIMATES PHASE Item Description Cost Assumptions 1 Mobilization 2 Permeable Wave Barrier $ 2,800,000 13% of items 2 thru 7 $ 9,400,000 3 Float System $ 600,000 4 Repair North Dock & Barge Ramp $ 600,000 5 500' x 60' Dock $ 8,000,000 6 Electrical Upgrades $ 2,000,000 7 Site Improvements $ 1,000,000 8 Engineering and Construction Oversight $ 2,000,000 8% of items 1 thru 7 9 City Project Management $ 2,400,000 10% of items 1 thru 7 10 Contingency $ 4,900,000 20% of items 1 thru 7 Phase I Total ........................................................................................................................................ $ 33,700,000 Notes: 1. Vessel sizes range from 340 ft to 30 ft. 2. Costs presented represent Phase I only. Future phases are not estimated at this time. 3. Costs are ROM and have not been validated with field data. ®� 111015 Seward SMIC PND Est.xls Page 1 of 1 Northern Thank you for contacting us about conducting an economics study to look at the feasibility of developing a facility to homeport the CDQ fleet in Alaska. We have developed an approach to quantify the benefits of this movement of vessels from Puget Sound to the state. Major components of our proposed study include: an evaluation of ports for homeporting the CDQ fleet, economic benefits accruing to the State of Alaska and appropriate local and regional governments, fiscal impacts on the state and local governments, benefits and costs to the CDQ groups, and industries and other infrastructure needed to support a large number of CDQ vessels. Based on the requirements for a homeport location, we believe Seward is the best candidate for the proposed facility. Seward is an ice free port and has highway and rail system connections. It is relatively close to Anchorage and the Ted Stevens International Airport which has direct connections with major communities in the CDQ region of western Alaska and to Seattle. Three operators provide scheduled barge freight service to Seward. Seward also has sufficient uplands space, skilled maritime maintenance workers, and vocational training (through AVTEC) in the community. AVTEC provides training for all of the licenses that are needed for maritime maintenance and operations. We anticipate CDQ groups would require a drive -on dock, work areas, warehousing and office space, and living areas. If located in Seward, the CDQ facility could be located adjacent to the existing infrastructure in the Seward Marine Industrial Center (SMIC), resulting in higher utilization of the SMIC facilities and benefiting from existing infrastructure and services located at SMIC. Additional upland space would be needed for companies providing support service to the vessels. The number of vessels is uncertain at present, but is expected to grow over time due to the requirement that CDQ groups invest at least 80 percent of their income into the fishing industry. The potential Alaska ports should have sufficient land and water areas to accommodate more than one hundred vessels in the future. The economic benefits of homeporting the CDQ fleet in Alaska would primarily be driven by spending on vessel maintenance work and other goods and services in Alaska, rather than in the Puget Sound region, and the large number of jobs available on the vessels and the support industries. It would allow Alaska businesses to compete with providers in Seattle and elsewhere in the Puget Sound region. Annual operations and maintenance expenditures of the larger CDQ vessels can reach hundreds of thousands of dollars and involve a variety of specialty services. We will use 2010 expenditure data from several CDQ groups to evaluate the amount of money spent by these fleets on each type of service. This information will be used to extrapolate the needs of the entire CDQ fleet if it were to homeport in Alaska. Using annual expenditure data, we will evaluate the economic impact on the state and local governments for the port that best fits the homeport criteria identified by the CDQ groups using IMPLAN input-output modeling software. In addition to the economic benefits to the state and region, the state and local governments could also see increased corporate income taxes, sales taxes, real and personal property taxes, and moorage revenues as a result of the additional economic activity. Some CDQ groups may prefer to lease uplands and dock space for longer periods of time and recommendations for a preferential use agreement will be included as well as potential lease revenues. The cost of providing some public services could also increase, with the biggest cost perhaps being due to an increased presence of port and harbor staff at a facility. Our study will look at the tax systems in place in the local government(s) where the port is located and estimate the fiscal effects of additional revenues and expenses associated with activity at a new facility. 1"80 H 51n�et, St>ite 2>10 [0:907 274.5600 [ mail: rr7aii� rrcxc.corr.ccam Am ho rajp, AK 99501 Fax:90, 274,560'1 wwkv.rtc rtherr7�ccxtrrruc�.c<xrt From the perspective of CDQ groups, homeporting vessels in Alaska could provide substantial cost and time savings from not having to move the vessels to and from their fishing grounds and the Puget Sound region. In addition, CDQ groups could save millions in airfare costs by dramatically reducing travel between Seattle and Alaska for vessel crews and management. Puget Sound's support industry benefits from efficiencies of scale, however, so the cost of goods and services at a new facility in Alaska would likely be higher. The cost premium would shrink as more vessels homeport in Alaska, though some goods and services will likely only be available in Puget Sound. We will conduct a benefit -cost analysis from the perspective of the CDQ groups to evaluate their interest in the facility. At present, many of the services used by CDQ groups in the Puget Sound region are not available in Alaska or are of insufficient size to serve the number of vessels that could homeport in -state. A fourth major component of our study will be an industry cluster study that looks at the types of services used by the fishing industry. Ballard's waterfront is a good example of the range of services offered in close proximity to haul out and work facilities. An initial challenge in attracting businesses to serve vessels will be the seasonality and operational capacity of a facility, since the work done on the CDQ vessels would occur at limited times during the year, during the off-season. Use of these services by other fishing vessels may help to alleviate the seasonality, since the shipyard does operate year-round. Other types of vessels, such as research, nonprofit, or private vessels, may also have an interest in using or relocating to the facility. Northern Economics has done a number of studies in Seward that will help to inform its work on this study. Recently, Northern Economics completed a planning study for future investment in SMIC for the City of Seward, and was part of the PND Engineers team in developing a TIGER grant application for SMIC improvements. Northern Economics also conducted some of the original studies for the SMIC and the synchrolift in the 1980s and early 1990s. The economic analysis for the CDQ Homeporting study will cost $85,000 to complete. Assuming a start date in early July 2011, we can submit a draft report on December 1, 2011. Norther nEconomics Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE CITY OF SEWARD'S CALENDAR YEAR 2011 STATE LEGISLATIVE PRIORITIES WHEREAS, the City annually compiles a list of projects or issues that are identified as top state legislative priorities: and WHEREAS, the list of projects is compiled and distributed to the State of Alaska Legislature, Kenai Peninsula Borough, and City of Seward lobbyist; and WHEREAS, this resolution validates projects, prioritizes needs, and focuses the efforts of City Administration in its lobbying efforts; and WHEREAS, the passage of this resolution occurs through a public process; and WHEREAS, all projects on this list are consistent with the City Comprehensive and Strategic Plans; and WHEREAS, this resolution is an amendment of the City of Seward 2011 State Legislative Priorities established in Resolution 2010-102. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The following list of legislative projects is hereby declared to be the official amended legislative priority list of the City of Seward for the 2011 State of Alaska legislative session: 1. STATE FUNDED PROJECTS A. PUBLIC FACILITIES (1) $125 thousand for kitchen expansion and renovations in the Seward Senior Center (the Senior Center will provide a matching S90 thousand to complete this project) (2) $2.5 million for constructing a 100' x 80' metal building to replace and relocate our existing public works shop (the City will provide land for the new building) (3) $2 million for expanding the Providence Seward Hospital Medical Clinic, moving the CT scanner into the facility, increasing backup generator capacity, and improving space for primary health care (the City provides $500 thousand annually for hospital financing of capital improvements) CITY OF SEWARD, ALASKA RESOLUTION 2011-006 B. PORT, HARBOR, AND INDUSTRIAL AREA (1) S400 thousand to conduct a preliminary engineering study and economic analysis for building and establishing the home port infrastructure that will support relocation of the fishing fleets owned and operated by the six Community Development Quota Groups (CDQ Groups) from the State of Washington to Alaska (2) $16 million for extending the Seward Marine Industrial Center basin breakwater to improve and increase ship moorage and loading capacity, ship repair capabilities. seafood processing operations. and barge landings (3) $100.5 thousand for engineering and design to replace failing infrastructure in the Seward Small Boat harbor including A, B, C, and S Floats 4 (4) $800 thousand for the Municipal Harbor Matching Grant Program to support replacing "D" Float in the Seward Small Boat Harbor (the City of Seward will provide an $800 thousand match to complete this $1.6 million project) (5) $575 thousand for building a Handicap Accessible Fish Cleaning Station in the Northeast I,aunch Ramp Arca of the Seward Small Boat Ilarbor (6) $250 thousand for paving and improving drainage in the northeast parking lot of the Seward Small Boat Harbor (7) $1.5 million for storm water discharge infrastructure that includes a security fence around the city vessel storage area at the Seward Marine Industrial Center (8) $1.7 million for doubling the capacity of the ship lift (syncrolift) and improving dock capabilities at the Seward Marine Industrial Center (9) $25 thousand to upgrade the Harbor Security Camera System (10) $4.5 million for completing sheet piling and adding moorage along the north side of the Sevvard Small Boat Ilarbor C. ELECTRIC ( I ) $4 million for completing the standby generator complex for the Seward Electric Utility as a match for $6 million in City revenue bond fielding (this will allow the City of Seward to contribute power generation remotely to the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — system for emergencies and back-up; this project includes moving 2 each 2.5 MW generators into the newly constructed.?cncrator plant building; completing the installation of automated generator controls through a Supervisory Control and Data Acquisition — SCADA — system: and constructing an emergency operations building for immediate response, maintenance, and warehousing) (2) $1.5 million to repair and replace one mile of transmission line into the Fort Raymond Substation with 115kV compatible equipment (this is a project supported by the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — because the current condition of the transmission line exceeds the estimated life expectancy of 50-years) CITY OF SEWARD, ALASKA RESOLUTION 2011-006 (3) $17 million for upgrading the transmission line to 115KV in Seward (and upgrading transformers and other equipment for the higher voltage) to reduce lint loss while area improving efficiency and reliability of power distribution throughout the service (4) $300 thousand for installing automatic electrical metering equipment to improve customer service, outage management, and load management (the City will provide a 100%match of $300 thousand to complete the project) (5) $85 thousand for establishing improvements to redundant capabilities for providino electrical power during emergencies, such as a tsunami, to the downtown and hospital area of Seward (the City will provide. a 100% match of S85 thousand for the project) (6) $5 million from the Rail -belt inter -tic funds for upgrading transmission lines between Anchorage and Seward (7) $60 thousand for studying the feasibility of a hydro electric plant to produce renewable energy in Seward D. ROADS, STREETS, AND ADA ACCESIBILITY (1) 5100 thousand for improving City ADA accessibility (2) 5225 million for Seward Community Roads . for repaving 1 nb road surfaces, reconstructing sidewalks, and improving roadway drainage systems (3) $2.496 million for design, engineering, construction, and protection from coastal erosion for the Lowell Point Road in the City of Seward (this road provides the sole land access to critical public infrastructure, state parks, and a Kenai Peninsula Borough residential housing area) 2. CRUISE SHIP HEAD TAX OR CRUISE SHIP GAMBLING TAX (1) Reappropriate $1.992 million from Designated Legislative Grant # 10-DC-024, Dredging Cruise Ship Berthing Basin rlpproaehes, for building a new water storage tank and distribution system that will establish the excess capacity to provide water and improved fire protection to cruise ships (this $1.992 million of funding is a 44% match for the 54.5 million water storage project -- the $2.508 million in additional fielding for the project is from low interest loans that will be obtained by the City — the City has already spent approximately $130 thousand in a 35% design of the project and $394 thousand in ARRA stimulus fundingn eoexpansion of the water distribution system that will accommodate the new storage tank) (2) $225 thousand to improve public restrooms in the Seward Small Boat Harbor (these restrooms are used extensively by cruise ship crew members and passengers) CITY OF SEWARD, ALASKA RESOLUTION 2011-006 (3) $25 thousand to extend the ADA accessible boardwalk from Port Avenue to the Holiday Inn Express (this is a primary pedestrian route for cruise ship members and passengers) (4) $500 thousand for improving the cruise ship pedestrian corridor between the Alaska Railroad Terminal and Cruise Ship Terminal (5) $21.5 thousand to construct an ADA accessible boardwalk for cruise ship passengers in the new upland area of the Seward Small Boat Harbor (the City will provide S50 thousand to this project) (6) $1.6 million for dock appurtenances at the Cruise Ship Terminal of the Alaska Railroad (these appurtenances include berthing camels for $390 thousand, baggage conveyor slot for $ 350 thousand, seasonal covered walkway for $360 thousand, installation of a second mooring bollard to accommodate a second cruise ship for $100 thousand.. extension of dock security lighting for $200 thousand, repair of piles with severe corrosion for $100 thousand, and repair of the cathodic protection system for $100 thousand) (7) $275 thousand to prevent erosion that threatens a U.S. Coast Guard communication tower for transmitting emergency Coni_munieations to cruise ships and other vessels (8) $2 million i-or constructing a 100' by 80' metal building to house emergency response equipment and shelter supplies at the Fort Raymond Satellite Fire Station (this location will allow or speed response to emergencies at the Cruise Ship Dock during those periods when other response is prevented by earthquakes or tsunamis) 3. STATEWIDE PROJECTS (1) $2 million for dock improvements and dredging at the Seward Marine Center to prepare for the RJV Sikuliaq (2) $150 thousand to continue renovating the Alutiiq Pride Shellfish Hatchery and expand. shellfish aquaculture in Alaska. (3) $265 thousand for a new Fire Alarm Control Panel for the Alaska SeaLife Centel- (4) $250 thousand for engineering and architectural design of an Arctic marine research and public education habitat at the Alaska SeaLife Center (5) $470 thousand for construction of a new courtyard sail cover at the Alaska SeaLife Center to protect cruise ship passengers and other visitors from inclement weather (6) $155 thousand in the Department of Corrections Operating Budget to add an emergency wastewater bypass (witli valves and piping) to keep the Spring Creek Correctional Facility sewage system operational in the event of a system failure (7) Full finding of the Governor's Capital Budget for AVTEC that includes $1 million for deferred maintenance and $210 thousand for the Maritime Simulator (8) Full funding of the Governor's Operating Budget for AVTEC that includes $250 thousand for deferred maintenance. $48 thousand for the Maritime Designated Duty En-ineer Training Program; and $226.8 thousand for the RN Program CITY OF SEWARD, ALASKA RESOLUTION 2011-006 4. BENEFICIAL LEGISLATION (1) Extension of the Education Tax Credit to the Alaska SeaLife Center (2) Legislative support for increased cash infusion into PERSiTRS retirement system in order to offset unfunded retirement system liabilities, to make future contribution rates more affordable for the State and local _overnments (3) Appropriation for upgrading Seward Hj*CT (MP 15-25.5) in the STIP (4) Appropriation for upgrading Seward Highway (MP 25.5-36) in the STIP (5) Appropriation for upgrading the Sterling Highway (MP 45-60) in the STIP (6) Construction of a highway exit off the Seward Highway in the vicinity of MP 6 for better and safer vehicle access to Camelot and Salmon Creek subdivisions (7) Support for continuing Medicaid programs and capital cost reimbursement at not less than current year funding levels (8) Return of service to Seward by the State Ferry Tustumena (9) Alternative Energy Programs that eiicourage and fund participation by the City and its electrical utility customers (10) Support of legislation forming an Alaska Invasive Species Council to help coordinate proactive action that prevents detrimental invasive species from bein introduced into Alaska g Section 2. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2011-006 PASSED AND APPROVED by the City Council of the City of Seward., Alaska, this 25"' day of January, 2011. THE CITY,,OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: Valdatta, Barclarson, Smith. Ked. Shafer, Casagranda, Dunham NOES: None ABSENT.- None ABSTAIN: None ATTEST: Gnu /' lohanna Kinii—ev I —Jcity Clerk. CMC Port and Commerce Advisory Board Agenda Statement Date: March 2, 2011 To: Port and Commerce Advisory Board From: Suzi Towsley, Executive Liaison Subject: Setting the work session topic for March 16, 2011 Background and Justification: Administration recommends that PACAB set the March 16, 2011 work session topic as discuss updates to the SMIC Development plan. City of Seward, Alaska February 2, 2011 CALL TO ORDER Port and Commerce Advisory Board Minutes Volume 3, Page The regular February 2, 2011 meeting of the Seward Port and Commerce Advisory Board was called to order at 12:06 p.m. by Chair Long. PLEDGE OF ALLEGIANCE TO THE FLAG led by Vice Chair Altermatt. ROLL CALL There were present: Chair Long presiding, and Board Members: Bruce Jaffa Darryl Schaefermeyer Dan Oliver (joined the meeting in Debra Alterman comprising a quorum of the Board Excused: Bob Linville Rob Buck Also were present: Kari Andes AKRR, Louis Beri ii3Cdino Suzi 'T6 ley,, PACAB Liaison at 12: S, AND REPORTS - Alaska Railroad Report • Crowley had -changed the name of the old NorCon warehouse or Sampson Building to the "freight building." • Sea TAC was expected twWebringing freight for Spenard Builders. • Alaska Logistics hadbeen'shut down for the winter for a few months. Were expected to pick back up in March. • Alaska Railroad open house was taking place on Friday the 41" and meetings all day. PACAB board members were invited to attend. • Railroad was possibly getting a mounted glass enclosed Kodiak grizzly for display in the terminal. • A field trip had visited on the 1 S` and the group was well received, and it was a great trip. Jaffa asked about the fieldtrip and organization of it. Quorum was lost. Schaefermeyer took a call and left the room briefly. City of Seward, Alaska February 2, 2011 Port and Commerce Advisory Board Minutes Volume, Page Schaefermeyer returns, quorum was regained and meeting resumed. Harbormaster Report • The 2011 Polar Bear jump was a success, the Harbormaster thanked all the volunteers and next year's event will take place January 20-22, 2012. • The City was working with a company to scrap and sell all the abandon Vessels in the SMIC yard. • Shoreside petroleum delivered 420,000 gallons of fuel across the north dock to their holding tank in January. • The Harbor had processed 18 slip transfer requests and had the wait list. • A new Assistant City Manager/Community Deve Weston. She would likely be at the March PACAB • A fire had taken place January 29`h. Two vessels we and the Seward Fire Chief was injured in the respon Fire and the Harbor Crew for containment and mfii • The Harbormaster was asked is there was yet an ap available this year. The Harbormaster said annroxin Chair asked if there was a comparison„ replied that she would look this up and bi number was about the same as last year. Dan Oliver joined the meeting. Approval of agenda and,consen Motion (Altermatt/Jaffa) [I] Compliments to & on of possible fire of this number aiidj this information ips to individuals on been hired, Michelle injured in eth fire Wire, Bear Creek iow many slipsTwould become being 32 foot and smaller. The ious years. The harbormaster �11,next meeting. She believed the Approve the Agenda and Consent Agenda Ad ition of `February work session topic" under new business Information aid ,Reports Ron Long gave a brief, report on his January 19 visit to the World Trade Center Forum in Anchorage. The overview was that,Alaska was pulling out of the recession faster than other states. All 5 Gas pipeline proposals were present which Long thought interesting. Jaffa remarked that he too had attended an economicforum in Anchorage and that it was, on the whole, positive. UNFINISHED BUISNESS Z float plan for spacing and configuration was discussed. Plan was discussed and possible funding strategy. The projected configuration and development plan was reviewed. The wait list was reviewed and discussed and compared to Z float Future Slip Design and likely availability. Oliver asked if the Alaska Coastal Region Fund was requesting the space being planned for. The harbormaster replied that this growth would free up space in the small boat harbor however she City of Seward, Alaska Port and Commerce Advisory Board Minutes February 2, 2011 Volume, Page believed they were, for the most part, looking at SMIC. Long asked about funding options and possible cost saving methods like perhaps waiting to build up Y/R float as it might be considered less desirable and my not cover its own cost. Revenue was discussed and the possibility of bonding out the expense. The board asked after the bond payback schedule and projected revenues from harbor operations. Passenger fee revenues were discussed as far as current bonds are concerned. Layered bonding was discussed. The harbormaster expressed that the preliminary planning would then be followed by exploring funding avenues. Chair Long echoed the sentiment clarifying that a quantitative analysis was key, a finance plan ; ,long with the preliminary designs. Information was requested on the cost side an tdf the potential benefit as well. A formal recommendation or actionable item from PACA,$ was therefore delayed. Item 9 New Business Resolution 2011-01 Motion (Jaffa/Schaefermeyer) General Discussion of the Resolution Motion (Long/Jaffa) Motion to amend re Amendment Motion passed unanimously as amended. Resolution 2011-02 RESOLUTION OF T'HE�,, PORT AND CQMMERCE ADVISOkVA.r ''BOARD, S P)'ORT, NG AND RECOMMENDING A PUT�TERSHIP BETWEEN THE CITY OF SEWARD AND THE ALASKA DEPARTMENT OF FISH & GAME FOR FISH ENCA CEMENT PROGRAMS "WHEREAS, pens would provide twee &2 positive benefits: J Reduce predation, 2) increase survival 3) Improve imprinting on fish, 4) concentrate return location, 5) provide for additional growth prior to release. Staff from the Alaska Sealife Center or Seward Harbor could be responsible for daily feeding of these fish until their release; and RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD, TO RECOMMEND THE CITY OF SEWARD PROPOSAL SUBMISSION TO THE EXXON VALDEZ OIL SPILL TRUSTEE COUNCIL FOR A VESSEL WASH City of Seward, Alaska February 2, 2011 Motion (Schaefermeyer/Oliver) Motion passed unanimously Motion (Jaffa/Oliver) Passed via unanimous consent Motion (Schaefermeyer/Oliver) Passed Via Unanimous Consent ADJOURNMENT The meeting was adjourned at 1:57 Suzi Towsley Executive Liaison (Cit Port and Commerce Advisory Board Minutes Volume, Page DOWN PAD FOR THE SEWARD MARINE INDUSTRIAL CENTER Approve Januar '5,, 2011regular meeting minutes. Ron Long Community Presentati,011 RNS I" k u I It"a q The Sikuliaq, pronounced {see-KOO-lee-auk} is the Alaska Region Research Vessel and will be a 26o-foot oceanographic research ship capable of bringing scientists to the ice -choked waters of Alaska and the polar regions. When complete, the vessel will be one of the most advanced university research vessels in the world and will be able to break ice up to 2.5 feet thick. Currently under construction at Marinette Marine Corporation, the Sikuliaq will be ready for operations in early 2014 and will be home ported at the University of Alaska Fairbanks Seward Marine Center. When: 10-March 2011 Where: K.M. Rae Building 125 3rd Avenue Time: 6:00 pm pizza/salad available 6:30-7:15 Presentation Presented By: Daniel Oliver 7:15-8: oo Q&A UAF-SMC ARRV Project Manager Pass ort Profit WORLD TRADE CENTER P ALASKA China's Growth Benefits Alaska Alaska's `China Era' Continues To Prosper By Greg Wolf For the past three decades, the Chinese economy has been growing at a sizzling rate, averaging 10% per year. For 2011, the latest International Monetary Fund forecast calls for China's economy to grow at 9.6%. Not bad when you consider the same forecast sees the U.S. economy growing at just 2.6%. The rapid expansion of the Middle Kingdom's economy, now the second largest in the world, has certainly benefited Alaska's export industries. China currently ranks as the state's second largest trading partner. Alaskan exports to China have risen from $103 million in 2000 to as high as $733 million in 2008. Reflecting the impact of the Great Recession (2008-2009), exports to China fell to $586 million in 2009. However, in 2010, the value of export shipments to China has rebounded strongly: for the period of January through October, exports totaled $859 million, a whopping 54% over the same period in the previous year. When the final numbers are in for the full year, 2010 will easily be a record -setting year for Alaskan exports to China approximately $950 million. We are projecting Seafood is the largest export category, representing 56% of the state's total exports to China. Some of the seafood shipped to China is for local consumption, and another portion is processed and then re-exported to other countries. Minerals, primarily zinc and lead concentrates, is the second largest category at 34%, followed by forest products and fishmeal. As we have suggested on a number of occasions, we see commercial ties between Alaska and China evolving and expanding. Clearly, China is already a significant and important buyer of Alaska's exports. This we expect to continue for the foreseeable future. But also, in the years ahead, we anticipate that Chinese companies will become investors in major natural resource development projects in Alaska. There is considerable interest by Chinese companies in Alaska's vast energy and mineral reserves. As they have done in many other jurisdictions where these resources are abundant, we expect Chinese companies to establish joint ventures or other equity involvement in such development projects. Chinese cargo airlines have become an important customer at the Ted Stevens Anchorage International Airport. There are currently five mainland cargo airlines operating through Anchorage, as well as one Hong Kong - based carrier. World Trade Center Alaska (WTCAK) has made China a major area of focus for our work. Since 2005, for example, we have conducted six Alaska -China Business Conferences in Anchorage. During the same time period, we have led two trade missions of private and public sector officials to China. In addition, we have published a number of reports to keep Alaskans informed about trade opportunities with China and have hosted receptions for visiting Chinese dignitaries enabling them to meet informally with Alaskan business and government leaders. To find out more about Alaska's growing trade ties with China, and how your company can participate, contact WTCAK. Alaska's Exports to China by Commodity (January - October, 2010) 5% 4% 1% J1 ■ Seafood ■ Minerals ■ Forest 34% Products Fish Meal 56% Other Source: U.S. Census Bureau, Governor's Office of International Trade World Trade Center Alaska 431 W. Seventh Avenue, Suite 108 Anchorage, Alaska 99501 Phone: (907) 278-7233 Fax: (907) 278-2982 March 2011 March 2011 April SuMo TuWe Th Fr Sa SuMo TuWe Th Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9101112 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 29 30 Monday Tuesday Wednesday Thursday Friday Feb 28 Mar 1 2 3 4 7:30pm P&Z Meeting 12:00pm PABAB v 00 N v 7 8 9 10 11 7:00pm CC WS; Budge 11:30am Seward Co>,�p� r� 14 15 16 17 18 7:00pm City Council M 6:30pm P&Z Work Ses 12:00pm PACAB Work S 9:00am Social Security 6:30pm Historic Preser 00 v 21 22 23 24 25 N r-I N fD 28 29 30 31 Apr 1 Seward'sDay; OfF es 6:00pm CC WS 7:00pm City Council M a Q 00 N N Nanci Richey 1 2/25/2011 10:53 AM 2/25/2011 10:53 AM