HomeMy WebLinkAboutRes2019-091 Sponsored by: Meszaros
CITY OF SEWARD,ALASKA
RESOLUTION 2019-091
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,URGING THE ALASKA LEGISLATURE AND GOVERNOR TO
FULLY FUND THE MUNICIPAL HARBOR FACILITY GRANT PROGRAM
IN THE FY 2021 STATE CAPITAL BUDGET
WHEREAS, in 1999, the State of Alaska transferred ownership of harbors to the
communities; and
WHEREAS, it is estimated that the backlog of projects necessary to repair and replace these
former State-owned harbors has increased to over$100,000,000; and
WHEREAS, the municipalities of the City of Cordova,City and Borough of Sitka,City of
Ketchikan,City of Homer,City of Edna Bay,City of Kake,City and Borough of Juneau,and the City
of Anchorage have offered to contribute$12,145,312 in local match funding for FY2021 towards
eight harbor projects of significant importance locally as required in the Harbor Facility Grant
Program; and
WHEREAS,for each harbor facility grant application,these municipalities have committed
to invest 100%of the design and permitting costs and 50%of the construction cost; and
WHEREAS,other communities have supported Seward with resolutions to the state to fund
the Facility Grant Program; and
WHEREAS,during the last eleven years the Municipal Harbor Facility Grant Program has
only been fully funded twice.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The Seward City Council hereby directs the City Manager to urge the Alaska
Legislature and Governor to fully fund the Harbor Facility Matching Grant Program in the amount of
$12,145,312 in the FY2021 State Capital Budget in order to ensure enhanced safety and economic
prosperity among Alaskan coastal communities.
Section 2. This resolution shall take effect on January 1, 2020.
CITY OF SEWARD, ALASKA
RESOLUTION 2019-091
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th
day of October, 2019.
THE CITY OF SEWARD, ALASKA
Chris erry, Mayor
AYES: Osenga, Seese, McClure, Lane, Baclaan, Terry
NOES: None
ABSENT: Butts
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MC
City Clerk
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Council Agenda Statement
Meeting Date: October 28, 2019
To: Seward City Council
Through: Scott Meszaros, City Manager
From: Norm Regis, Harbormaster
Agenda Item: A resolution urging the State Legislature and Governor to fully fund
the Municipal Harbor Facility Grant Program in the FY 2021 State
Capital Budget
BACKGROUND &JUSTIFICATION:
The City of Seward received funding in 2016 from the Harbor Facility Grant program with support
from other communities that have not requested funds. The City of Seward would like to support
other communities.
The grant program was started because the State of Alaska transferred the responsibility for its
state owned harbors to local municipalities, but many harbors needed new capital investment. It
is currently estimated that the backlog of projects necessary to repair and replace these former
State owned harbors has increased to over$100,000,000.
For FY 2021 many municipalities have grant applications pending with a total cost to the state of
$12,145,312. The grant program has only been fully funded twice.
The grant program is the City's best means to replace its docks and keep customer rate increases
to a minimum, with renewing our support to keep this grant funded each year would benefit other
communities and the City of Seward for future harbor improvements.
DOT Grant Program
The Municipal Harbor Facility Grant Program is managed by DOT&PF. The program provides
50150 matching funds to eligible applicants. The program was created in 2006, but not funded
until 2007. The legislature supplied funding in subsequent years (but not in 2009). The money
can only be used for construction ready projects, not for planning or engineering. This grant
program is funded on an annual basis at the discretion of the Alaska Legislature and consists of
two tiers, Tier I and 11. With State revenues projected to decline over the next few years, funding
for the municipal Harbor Facility Grant Program will be a bigger challenge for the Legislature.
INTENT:
To urge the state legislature and Governor to fully fund the state Municipal Harbor Facility Grant
Program in the amount of$12,145,312.
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CONSISTENCY CHECKLIST: Yes No N/A
._____.. ______W-_W________W-__________W-___________W-_____W-_______W ry ...........
2030 Seward Comprehensive Plan (page 16): Maintain a thriving port
1. of Seward through harbor improvements, infrastructure expansion, X
and imp_lementation of mana ement lans.
._________________________9_______P.__________________________________________ _ ..-_______-. ..
2. City of Seward Strategic Plan (page 7): Complete the renovation of X
the Seward Boat Harbor
3. Other: X
FISCAL NOTE: There is no fiscal note for this Agenda Statement and Resolution; this is to
support other communities with the same needs as the Cit ,a, " ° ward.
Approved by Finance Department: a
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2019-091 authorizing the City Administration and lobbyist to urge
the state legislature and Governor to fully fund the Harbor Matching Grant program in the
amount of $12,145,312.
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Alaska Association of Harbormasters
and
Port Administrators,
RESOLUTION NO. 2019-1
A RESOLUTION OF'THE ALASKA ASSOCIATION OF HARBORMASTERS, AND
PORT ADMINISTRATORS IN SUPPORT OF FULL FUNDING ($12,145,312) FOR THE
STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE
FY 2021 STATE CAPITAL BUDGET.
Whereas, the Alaska Association of Harbormasters and Port Administrators recognizes the
majority of the public boat harbors in Alaska where constructed by the State during the 1960�s
and 1970s; and
Whereas, these harbor facilities represent critical transportation links and are the transportation
hubs for,waterfront commerce and economic development in Alaskan coastal communities; and
Whereas, these harbor facilities are ports of refuge and areas for protection for ocean-going
vessels and fishermen throughout the State of Alaska,especially in coastal Alaskan
communities; and
Whereas, the State of Alaska over the past nearly 30 years has transferred ownership of most of
these State-owned harbors, many of which were at or near the end of their service life at the time
of transfer, to local municipalities; and
Whereas, the municipalities took over this important responsibility even though they knew that
these same harbor facilities were in poor condition at the time oftransfer due to the state's failure
to keep up with deferred maintenance; and
Whereas,consequently, when local municipal harbormasters formulated their annual harbor
facility budgets, they inherited a major financial burden that their local municipal governments
could not afford; and
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Whereas, in response to this financial burden,the Governor and the Alaska Legislature passed
legislation in 2006, supported by the Alaska Association of Harbormasters and Port
Administrators,to create the Municipal Harbor Facility Grant program, AS 29.6,0.800; and
Whereas,the Alaska Association of Harbormasters and Port Administrators, is pleased with the
Department of Transportation and Public Facilities administrative process to review, score and
rank applicants to the Municipal Harbor Facility Grant Program, since state funds may be
limited; and
Whereas, for each harbor facility grant application,these municipalities have committed to
invest 100% of the design and permitting costs and 50%,of the construction cost; and
Whereas, the municipalities of the City of Cordova,City and Borough of Sitka, City of Ketchikan,
City of Homer, City of Edna Bay, City of Kake, City and Borough of Juneau,and the Municipality of
Anchorage have offered to contribute $12,145,312 in local match funding for FY2021 towards seven
harbor projects of significant importance locally as required in the Harbor Facility Grant Program;
and
Whereas,completion of these harbor facility projects is all dependent on the 50%match from
the State of Alaska's Municipal Harbor Facility Grant Program; and
Whereas, during,the last ten years the Municipal Harbor Facility Grant Program has only been
fully funded twice; and
Whereas,during the:last ten years the backlog of projects necessary to repair and replace these
former State-owned harbors has increased to over$100,000,000.
Now therefore be it resolved that the Membership of the Alaska Association of Harbormasters
and Port Administrators urges full funding in the amount of$12,145,312 by the Governor and the
Alaska Legislature for the State!of Alaska's Municipal Harbor Facility Grant Program in the FY
2021 State Capital Budget in order to ensure enhanced safety and economic prosperity among
Alaskan coastal communities.
Passed and approved by a duly constituted quorum of the Alaska Association of Harbormasters
and Port Administrators on this 3rd day of October,2019.
WATTEST• adUchytilrsident
Rachel Urd, Executive Secretary
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AAHPA
Alaska Association of Harbormasters & Port Administrators
602 Shellfish Ave
Homer, AK 99603
Phone: (907)299-9000
July 19, 2019
Dear Governor Dunleavy and Members of the Alaska Legislature,
The Alaska Association of Harbormasters and Port Administrators respectfully disagrees with the line-item veto
in the Capital Budget of$1.6M for the FY20 Municipal Harbor Matching Grant Program.
In February, our Board of Directors met with Governor Dunleavy and many legislators from around the state,
and we were encouraged by your support of Alaska's port and harbor infrastructure and your understanding of
the 'skin in the game' by municipalities as part of this program. Every state dollar is matched 1:1 with local
funds to execute these critical infrastructure upgrades in Alaska's harbors.
Five municipalities applied for FY20 Harbor Matching Grant funds, together able to commit$7.4M in local
funds for a total of$14M+ in potential capital harbor projects across the state. These projects not only
recapitalize critical harbor infrastructure, but they infuse funds into the local economics, engaging the many
vendors providing engineering, fabrication, and construction support to make them happen.
In the legislature's FY20 Capital budget, $1.6M was re-allocated to the Harbor Matching Grant program from
other harbor facility projects completed under the harbor facility grant program in the communities of Nome,
Seldovia, and Sitka. The comments for the veto line-item state that, "Funding for projects that are complete
should lapse and new capital projects should be established." With all due respect, the AAHPA would remind
the Governor and the Legislature that the Harbor Facility Grant program does exactly that - it establishes
needed capital projects for harbor facilities across the state that meet a multitude of strict guidelines, are
competitively scored by ADOT, and that have 1:1 funding support from the community. We strongly believe
that funding should be responsibly re-allocated back to the Harbor Facility Grant program to fund the highest
scoring project(s) for FY20 through the State's established and very effective system.
The AAHPA Board of Directors and I are always at your service to provide assistance and insight into the
infrastructure needs of Alaska's ports and harbors, and their impact and importance statewide.
Sincerely,
Carl U?hyt'il,'rP
President
Alaska Association of Harbormasters & Port Administrators
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