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HomeMy WebLinkAboutRes2020-095 CITY OF SEWARD,ALASKA Sponsored by: Regis RESOLUTION 2020-095 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, URGING THE ALASKA LEGISLATURE AND GOVERNOR DUNLEAVY TO FULLY FUND THE MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2022 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$500 million; and WHEREAS, the City of Cordova, City of Seward, City of Sand Point, the City and Borough of Juneau, and the City and Borough of Sitka have offered to contribute$14,049,988 in local match funding for FY2022 towards five 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 the City of Seward with resolutions to the state to fund the Facility Grant Program; and WHEREAS, during the last 11 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 City Council hereby urges the Alaska Legislature and Governor Dunleavy to fully fund the Harbor Facility Matching Grant Program in the amount of$14,049,988 in the FY2022 State Capital Budget in order to ensure enhanced safety and economic prosperity among Alaskan coastal communities. Section 2.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of December, 2020. CITY OF SEWARD, ALASKA RESOLUTION 2020-095 TH IT OF S WA ASKA risty Terry, ayo AYES: Osenga, Seese, Baclaan, Casagranda, DeMoss, McClure, NOES: None ABSENT: None ABSTAIN: None ATTEST: renda J. Ballou, C City Clerk (City Seal).••' ... ....,..,,,. y pf SE •. r • SEAL -.•-- s . ti•. F OF, A P,.• Council Agenda Statement Meeting Date: December 14, 2020 From: Norm Regis, Acting City Manager Agenda Item: A resolution urging the State Legislature and Governor to fully fund the Municipal Harbor Facility Grant Program in the FY 2022 State Capital Budget BACKGROUND & TTUSTIFICATION: The City of Seward received funding in 20I6 from the Harbor Facility Grant program with support from other communities that have not requested funds. Now, The City of Seward is the number one tier two applicant for the FY 22 Harbor Facility Grant. The grant program was started because the State of Alaska transferred the responsibility for its state-owned harbors to Iocal 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$500,000,000. For FY 2022, many municipalities have grant applications pending with a total cost to the state of $14,049,988. 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. By renewing our support to keep this grant funded each year, it 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 AIaska Legislature and consists of two tiers, Tier I and II. 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$14,049,988. 115 CONSISTENCY CHECKLIST: Yes No N/A 2030 Seward Comprehensive Plan (page 16): Maintain a thriving port 1. of Seward through harbor improvements, infrastructure expansion, X and implementation of management plans. 2 City of Seward Strategic Plan (page 7): Complete the renovation of X the Seward Boat Harbor 3. Other: FISCAL NOTE: There is no fiscal impact from the passage of this support resolution. Fully funding the grant program will help reduce the use of fund balance for future projects, improvements, and maintenance. Approved by Finance Department; ATTORNEY REVIEW: Yes-No X RECOMMENDATION: Council approve Resolution 2020- , authorizing the City Administration and lobbyist to urge the state legislature and governor to fully fund the 2022 Harbor Matching Grant program in the amount of$14,049,988. 116