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HomeMy WebLinkAbout11092015 City Council Work Session Notes - Harbor Crane & Grid Funding WORK SESSION NOTES ON -4DY CM 6rid+ th Xiap Purpose: Present: [-lot I tariA nn Council Members Present: Bardar6� cc/I/ CA � � '�`J / Ca Sct 1c4,'?aa1 S u Present,: G� , Lu��1d e � � , ►,3vaf s, nit-Ciptrej Called by: /' I Time: (,P:00 [n kY\, Date: ��-7/5 'i" DU?p,A 5 bLiC ' 61/1 i n nG1i45 9 401u - - cia, ,tij Cot, tfroviAs - twAftik, ClaytwOr- - - In(46c10urCt I just called the Homer harbor and asked. Here's the procedure: 0 First you go into a harbor office and watch a half hour video on the operation of the crane. After completing that you get certificate that allows you to sign up for the card.. The card costs $52 per year to keep, as well as $75 per hour billed in 15 minute increments for usage. A liability release has to be signed. You get two cards issued to you when you sign up. We have used other fishermen's cards ourselves and paid for the use on the dock. Its not that hard, and it never set us back whatever time of day we needed it. I would prefer no card system at all like Cordova, but that might not work in Seward. Homers system works OK. I have never heard of an accident serious enough to get in the news from any harbor in the State. Liability releases are routine with card based systems. Every other town on the coast can handle it without problems. -I think-we-can-too: 3uW %IA° li-Y)N ' 9 RECEIVED 015 NC / 0 9 2015 ....� r`..: OFFICE vF THE CITY CLERK '7,- . "Idsi-• ri E‘.'3 • ; r ; ;.;), tC; •'; •• i • • .• -.;% T-0) I •-! "":3 ` 'k . • f:`• je' -kkk r`3 ,:),\A" -• i;'.0k ".; ,'yr- •; ,0 r-,3 :;1.0 r"•-?;:;,• `.; ••• • ; F.! : '21: • . fl :10:-":" ' ;.; •;:..:10 • ; ; '•' ' s ' •3 ;3 00.0, WGkV\? Sponsored by: PACAB CITY OF SEWARD,ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2015-003 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD,ALASKA,RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A FIVE TON CRANE LOCATED ON I-DOCK AND TO PURSUE FUNDING SOURCES TO COMPLETE THIS PROJECT WHEREAS,in many harbors,public cranes are used by vessel owners to load and unload gear and fish; and WHEREAS,the Seward Small Boat Harbor currently has no public cranes; and WHEREAS, construction of a public crane is on the 2015 City Legislative priorities as approved by City Council Resolution 2014-087; and WHEREAS, a fixed crane offers a safer and more flexible alternative than using boom trucks; and WHEREAS,a preliminary design report was received from Moffatt&Nichol and PACAB discussed and determined that a five ton crane located on I-dock is the best location and size for Seward Harbor users; and WHEREAS,there is currently no funding source available for this project; and WHEREAS, a funding source is required for this project to proceed. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD,ALASKA that: Section 1. The Port and Commerce Advisory Board recommends the City Council approve purchase/construction of a five ton crane located on I-Dock. Section 2. The Port and Commerce Advisory Board recommends the City Council pursue funding sources to complete this project. PASSED AND APPROVED by the Port and Commerce Advisory Board this 4th day of November, 2015. THE CITY OF SEWARD,ALASKA CITY OF SEWARD,ALASKA RESOLUTION 2015-003 IS> �QQ Darryl Schaefermeyer,Vice-Chair AYES:Linville, Oliver,Andrews, Hughes, Schaefermeyer NOES: ABSENT: Jaffa ABSTAIN: VACANT: One ATTEST: Johanna Kinney, CMC City Clerk (City Seal) � r r NOV 092015 iten� I ^ U 19/11 OFFICE of THE 1`�n�'�(2� 1 q CITY CLE ��II�T�if/ IVI Sewar: ._._. • - e Proposal Timeline: 2003-2015 hb 2003-2005: Extensive harbor renovation funded by the State of Alaska began with the transfer of harbor ownership to the City. Tryck Nyman Hayes held seven public meetings in Seward plus a couple in Anchorage, and designed the approved renovations. The Seward meetings were well attended. Cranes, grids, wooden docks, and alterations to the dock layout drawings presented were expressed at every meeting to no avail. None of those suggestions were•incorporated into either following meeting's plan, or the eventual project. Conclusion: The Seward meetings were just for show. The plan and final project went ahead without discernable local input. Some money could have been saved by eliminating the public meetings since they had no effect on the outcome anyway. The crane, among other things, did not make it into the plan. 2006-2015: Major harbor expansion with addition of Z dock, E dock contract completed, D dock contract completed, ABC&S docks in progress. March, 2009: PACAB resolution 2009-002 recommends by unanimous vote that Council approve the North Harbor Development Recommendations which include investigating feasibility and economic development value of installing a 5 ton crane near the new 50 ton Travelift dock. • Summer, 2013: After several years on the priority list and much discussion at PACAB, Seward Harbormaster Mack Funk contracts with Moffat & Nichol, Charles Balzarini PE,to do a Public Use Crane Preliminary Design Report at a cost to the City of$5400. October-December, 2013: October 2013 Preliminary Design Report received back from Moffat & Nichol with analysis comparing the option of a 5 ton crane on I dock, or a 1.5 ton crane on the Travelift dock. Discussion continues over the next five PACAB meetings on this issue. Public testimony received at PACAB from nine Seward commercial fishermen and one cannery manager. March, 2014: After extensive public process PACAB passes Resolution 2014-1 unanimously calling for a final design of an 8 ton crane to be located on I dock. April-December, 2014: PACAB's Resolution 2014-1 lost in limbo, no action. January, 2015: City Council Resolution 2015-2 modified in language and crane size passes Council initiating a Request for "Proposals, Quotes, or Bids" by the Administration. May, 2015: City Council Resolution 2015-42 passes Council. This resolution authorizes another study;this time between a 5 ton crane on I dock, and a 2.5 ton crane on the Travelift dock; to be done by the same engineer who did the first study, Charles Balzarini PE with Moffat & Nichol costing$9862. S November 4, 2015: With the second design study in hanld, PACAB's Resolution 2015-3 passes unanimously recommending the City Council approve a 5 ton crane project on I dock and to pursue funding sources to complete the project. November 9, 2015: City Council work holds a work session to pursue crane funding sources. 2004-2015: Pink salmon prices rise from .05/lb to .40/Ib. Prince William Sound salmon seine permits are once again fully utilized; with 254 of them active in 2015. Permit prices increase from $14000 each to $200000 each. Yet even with 254 boats purse seining salmon right next door and hiring over 700 crewmembers, Seward's PWS seine fleet declines even further to the point where there are only six PWS seiners registered in the CFEC database with a Seward zipcode. Seward gets some of the deliveries/fish tax, but less than 5%of the jobs/cash. The other 95%goes elsewhere, mostly to our surrounding port towns even though Seward is the closest port to the Southwestern District, the biggest producer in PWS. Refer to "Alaska Preliminary Commercial Salmon Harvest and Exvessel Values" recently published by the ADF&G. The 2015 all species salmon harvest exvessel value to the fleet fishing in PWS was 118 million. Seward fishing families share: less than 5%. We do better than average, but there just aren't very many of us. An increase to a 15%share of the exvessel value would mean an extra 11 million dollars brought back to Seward in crew shares, boat work, and gear. Why has Seward's share olf this industry dwindled to almost nothing? Two reasons: First, higher operational costs; Seward's moorage costs are among the highest statewide combined with the ad valorum t x on vessels which on the larger vessels can more than double the moorage expense. And second, lack of amenities such as public cranes and grids which make Seward much more difficult and at times during the busy summer season, an impossible port to do work in Seward's neighboring ports provide multiple public cranes/grids, and cost much less with either a flat vessel tax or no vessel tax. Seward's portion of Alaska's Fisheries Business Tax brought 4:2 million dollars in revenue into Seward's annual budget process (See Shared Tax Reports at www.tax.alaska.gov) over the last ten years. Little of that has been spent providing the fleet that produces this revenue with the same amenities that all surrounding ports take for granted. Conclusion: Fund the crane over time by dedicating an annual portion of Seward's share of the fish tax to make it happen. Utilizing the costs esti ated in both recent crane design studies, and the past ten years as an estimate of fish tax revenue going forward; a 90/10 split,with 90% of fish tax revenue going into Seward's general fund, and 10% paying the note on the crane,this project would be paid off in less than ten years. All other funding • sources (EVOS,ADF&G Sport Fish, Commercial Passenger Vessel Tax) are restricted with no crane projects allowed, or reduced to little or nothing(State capital budgets). At this point,we have to make it happen ourselves, or as the record outlined above clearly shows; it never will. I Compiled by Bob Linville, November 8, 2015 • I 1 November 4, 2015: With the second design study in hand, PACAB's Resolution 2015-3 passes unanimously recommending the City Council approve a 5 ton crane project on I dock and to pursue funding sources to complete the project. November 9, 2015: City Council work holds a work session to pursue crane funding sources. 2004-2015: Pink salmon prices rise from .05/Ib to .40/Ib. Prince William Sound salmon seine permits are once again fully utilized; with 254 of them active in 2015. Permit prices increase from $14000 each to $200000 each. Yet even with 254 boats purse seining salmon right next door and hiring over 700 crewmembers, Seward's PWS seine fleet declines even. further to the point where there are only six PWS seiners registered in the CFEC database with a Seward zipcode. Seward gets some of the deliveries/fish tax, but less than 5% of the jobs/cash. The other 95%goes elsewhere, mostly to our surrounding port towns even though Seward is the closest port to the Southwestern District, the biggest producer in PWS. Refer to "Alaska Preliminary Commercial Salmon Harvest and Exvessel Values" recently published by the ADF&G. The 2015 all species salmon harvest exvessel value to the fleet fishing in PWS was 118 million. Seward fishing families share: less than 5%. We do better than average, but there just aren't very many of us. An increase to a 15%share of the exvessel value would mean an extra 11 million dollars brought back to Seward in crew shares, boat work, and gear. Why has Seward's share of this industry dwindled to almost nothing? Two reasons: First, higher operational costs; Seward's moorage costs are among the highest statewide combined with the ad valorum tax on vessels which on the larger vessels can more than double the moorage expense. And second, lack of amenities such as public cranes and grids which make Seward much more difficult and at times during the busy summer season, an impossible port to do work in. Seward's neighboring ports provide multiple public cranes/grids, and cost much less with either a flat vessel tax or no vessel tax. Seward's portion of Alaska's Fisheries Business Tax brought 4.2 million dollars in revenue into Seward's annual budget process (See Shared Tax Reports at www.tax.alaska.gov) over the last ten years. Little of that has been spent providing the fleet that produces this revenue with the same amenities that all surrounding ports take for granted. Conclusion: Fund the crane over time by dedicating an annual portion of Seward's share of the fish tax to make it happen. Utilizing the costs estimated in both recent crane design studies, and the past ten years as an estimate of fish tax revenue going forward; a 90/10 split, with 90% of fish tax revenue going into Seward's general fund, and 10% paying the note on the crane,this project would be paid off in less than ten years. All other funding sources (EVOS,ADF&G Sport Fish, Commercial Passenger Vessel Tax) are restricted with no crane projects allowed, or reduced to little or nothing(State capital budgets). At this point,we have to make it happen ourselves, or as the record outlined above clearly shows; it never will. Compiled by Bob Linville, November 8, 2015 Public Crane for Seward Small Boat Harbor Timeline Compiled from Seward Legislative History 11/8/2015 Date Issue PACAB Action Council Action November 4, 2015 PACAB Resolution 2015-3 recommending the City Council to approve a 5 Passed ton crane on I dock and to pursue funding sources to complete the project. unanimously May 11, 2015 CC Res 2015-042 Approving Contract with Moffat and Nichol to further Approved Study the Feasibility of a Public Crane up to 5 Tons in Size at Two Different 4 Ayes Locations in the Small Boat Harbor for the Amount of$9862. 3 Noes January 12, 2015 CC Res 2015-002 Approving Final Design of up to 5 Ton Crane on I Dock, Approved changed to"Request for proposals, quotes,or bids for up to a ton crane on 4 Ayes I dock". 3 Absent December 8, 2014 Res 2014-091 Approving the Small Boat Harbor Plan-4.10 Public Crane"A Approved preliminary design report looked at two possible location and two sizes of 6 Ayes cranes. Further discussion,along with public testimony, resulted in a 1 Absent unanimously passed PACAB Resolution 2014-01, approving design and construction of an 8 ton crane to be located at the end of I Dock.The alternative suggested by the administration was a 1.5 ton crane located on the Travelift Dock.The purpose of either of these projects would be for mariners to load and unload fish and gear." (SBHP, pg. 21) October 14, 2014 PACAB Discussion of Small Boat Harbor Plan 4.10 Public Crane cited Approved (See 12082014 CC Packet) March 19,2014 PACAB Res 2014-01 Recommending CC Approve Final Design of 8 Ton Public Approved Crane on 1 Dock 6 Ayes 1 Absent February 19, 2014 PACAB Special Meeting RES 2014-01 Approve Final Contract for 1.5 Ton Discussion, no Public Crane at the Travel Lift Dock Bulkhead vote September 5, 2012 Res 2012-05 City Legislative Priorities-$150,000 Card Lock Crane at the Approved Travel Lift Dock 4 ayes May 11, 2009 CC Res 2009-042 Approve North Harbor Development Recommendations Approved 4 Ayes 3 Absent March 4, 2009 PACAB Res 2009-002 Council Approve North Harbor Development Approved Recommendations—investigate feasibility and economic development 4 ayes value of installing 5 ton crane near the new 50 ton travel lift dock. 2 absent