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Home My WebLink AboutRES2025-013 Harbor Facility Grant SupportSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-013 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING FULL FUNDING FOR THE STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY26 STATE CAPITAL BUDGET WHEREAS, the majority of the public boat harbors in Alaska were constructed by the State during the 1960s and 1970s; and WHEREAS, in 1999 the State of Alaska transferred ownership of harbors to their respective communities; and WHEREAS, many of these harbors were at or near the end of their service life; and WHEREAS, a survey done by the Alaska Municipal League of Alaska's ports and harbors found that from the respondents, the backlog of projects necessary to repair and replace former Sate -owned harbors has increased to at least $500,000,000; and WHEREAS, these harbor facilities represent critical transportation links and are the transportation hubs for waterfront commerce and economic development in Alaska coastal communities; and 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 29.60.800); and WHEREAS, for each harbor facility grant of plication, these municipalities have committed to invest 100% of the design and permitting 'costs and 50% of the construction cost; and WHEREAS, during the last fifteen years the Municipal Harbor Facility Grant Program has only been fully funded twice; and WHEREAS, the municipalities of Unalaska, Sitka, and Juneau have committed to contribute half of their project cost in local match funding for FY25 towards harbor projects of significant importance locally as required in Harbor Facility Grant Program; and WHEREAS, other communities have supported Seward with resolutions to the state to fund the Facility Grant Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward supports full funding for the State of Alaska Municipal CITY OF SEWARD, ALASKA RESOLUTION 2025-013 Page 2 of 2 Harbor Facility Grant Program in the amount of $5,740,408 in the FY2026 State Capital Budget to ensure enhanced safety and economic prosperity among Alaskan coastal communities. Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of January 2025. THE CITY OF SEWARD, ALASKA <Mfi`rwCl_iuK Sue McClure, Mayor AYES: Barnwell, Finch, Crites, Osenga, Wells, Warner, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) •`'� F �SE{v''• • SEAL �.- ; - ••%ATE OF P\ 's•%% 1 1 1 City Council Agenda Statement Meeting Date: January 27, 2025 To: City Council Through: Kat Sorensen, City Manager From: Tony Sieminski, Harbormaster Subject: Resolution 2025-013: Supporting Full Funding for the State of Alaska Municipal Harbor Facility Grant Program in the FY26 State Capital Budget Background and justification: The City of Seward received funding most recently in 2022 from the Harbor Facility Grant program. The City of Seward valued the support from other communities and would like to support them as they request funds. The grant program was started in response after the State of Alaska transferred 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 $500,000,000. For FY 2026 many municipalities have grant applications pending with a total cost to the state of $5,740,408. 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 50/50 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 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. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Create a thriving port of Seward through harbor improvements, infrastructure expansion, and implementation of management plans. Strategic Plan: Complete the renovation of the Seward Boat Harbor 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: Has no fiscal impact X Funds are: Budgeted Line item(s): Not budgeted Not applicable X $ $ $ Affected Fund: General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 5 y 4u X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Adopt Resolution Other: