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HomeMy WebLinkAboutRES2023-019 Re-establish Ferry Terminal CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2023-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING AND REQUESTING THE CITY OF SEWARD BE RE-ESTABLISHED AS AN ACTIVE PORT FOR THE ALASKA MARINE HIGHWAY SYSTEM WHEREAS, the 2030 Seward Comprehensive Plan, Goal 2.2.12.6, is to support establishment of Alaska Marine Highway System (AMHS) service; and WHEREAS,the 2016 Alaska Department of Transportation Study conducted by the McDowell Group found that the "state-run ferry system generates a return of more than $2 to the state for every $1 invested"; and WHEREAS, by state statute, Seward is the service port for Alaska Marine Highway Vessels that service the region; and WHEREAS, the restoration of Seward as an AMHS active port would have positive social and economic impacts for both Seward and connecting communities through increased access and commerce; and WHEREAS, the United States Coast Guard connections between Seward, Kodiak, Valdez, and Cordova would be strengthened; and WHEREAS, it would create a transportation system redundancy that would be vital in case of infrastructure failure or natural disaster in the region; and WHEREAS, Seward is expected to have a new Chugachmiut Regional Health Center completed in the coming years which will provide services to various communities and tribal members in South Central Alaska; and WHEREAS, resumption of ferry services would enhance accessibility to this new clinic and additional heath and safety needs; and WHEREAS,the re-establishment of Seward as an active port would overall be beneficial to Seward,the South Central Region, and the State of Alaska as a whole. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby supports and requests that the City of Seward be re-established as an active port of the Alaska Marine Highway System. CITY OF SEWARD,ALASKA RESOLUTION 2023-019 Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. THE CITY OF SEWARD,ALASKA c Ch.re Sue McClure,Mayor AYES: Osenga, Finch, DeMoss, Calhoon, Wells, McClure NOES: None ABSENT: Barnwell ABSTAIN: None ATTEST: /Ord / A 'AI1. . :renda J. :allo /MMC City Clerk iumyu Of StiP* (City ppo 'T''•. s G ,c° R4r�=° e w • SEAL • � City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2023-019: Supporting and Requesting the City of Seward Be Re- Established as an Active Port of the Alaska Marine Highway System Background and justification: Seward lost Alaska Marine Highway System (AMHS) service in the fall of 2005.The economic study commissioned by the City Council in 2004 and was released in 2005, showed the loss negatively impacted Seward by $1.8 million annually. Returning AMHS Service to Seward would have a significant positive impact on Seward,the Region, and State. According to the ADOT 2016 Economic Impacts of the Alaska Marine Highway System study conducted by the McDowell Group: • The state-run ferry system generates a return of more than $2 to the state for every $1 invested • The AMHS spent$84 million with over 500 Alaska businesses in 2014 operations and capital expenditures • In 2014, the AMHS carried 319,000 passengers, 108,000 vehicles, and almost 4,000 container vans of freight • Two-thirds of AMHS users are Alaska residents • AMHS is a major transporter for the Alaska Seafood Industry The 2030 Seward Comprehensive Plan 2.2.12.6 states: Support establishment of Alaska Marine Highway System service. Positive impacts: • There continues to be traveler and tourist demand for AMHS out of Seward as evidenced by the amount of calls the Chamber of Commerce receives each year regarding availability and schedules. • It would increase the capacity and reach of the Alaska Rail Road for passengers, vehicles, and freight both incoming and outgoing. • It would create access redundancy for Seward in the case of a catastrophic event such as an avalanche or an earthquake that would disrupt the highway access. • By Alaska State Statute, AMHS vessels are to be repaired in Seward. The return of service would ensure business continues. • It would create stronger ties for the Coast Guard Communities between Kodiak, Valdez, Cordova, and Seward with the incoming Fast Response Cutter and updated base coming to Seward in 2024. • With the Chugachmiut Clinic being built in the coming years, it would create another way to access the clinic for our rural community partners. • It would increase work for local Longshoremen and create more local jobs for both direct and indirect services. 166 Other potential impacts include: • Lower costs of freight for local businesses • Increase business for support services (fuel, supplies) • Increase business for our seafood processors (seafood freight is currently being run on the AMHS to Whittier and Homer) • Increase non-summer visitor traffic of Alaska residents to Seward • Reduced travel costs for student athletics in the Region • Create business and increase commerce opportunities between Seward and other AMHS communities • Open opportunities for more federal funding Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 2.2.12.6 Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund (✓): General SMIC N Electric Wastewater Boat Harbor ParkingWater Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review RxYes Attorney Signature: Not applicable Comments: 167 Administration Recommendation eApprove Resolution Other: 168