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HomeMy WebLinkAboutRES2025-112 Support for Harbor Facility GrantSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-112 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 FY27 STATE CAPITAL BUDGET IN THE AMOUNT OF $18,186,535 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 these 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 State-owned harbors has increased to at least $500,000,000; 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 application, these municipalities have committed to invest 100% of the design and permitting Costs and 50% in construction cost; and WHEREAS, during the last fifteen years the Municipal Harbor Facility Grant Program has only been fully funded twice; and WHEREAS, we have been the fortunate recipient of these funds, and it is now our desire to support other communities that have supported Seward with resolutions to the State to fund the Harbor 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 Harbor Facility Grant Program in the amount of $18,186,535 in the FY2027 State Capital Budget to ensure enhanced safety and economic prosperity among coastal Alaskan communities. Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 17th day of November 2025. CITY OF SEWARD, ALASKA RESOLUTION 2025-112 Page 2 of 2 THE CITY OF SEWARD, ALASKA dwwctLL4. Sue McClure, Mayor AYES: Barnwell, Crites, Osenga, Calhoon, Draper, McClure NOES: None ABSENT: Warner ABSTAIN: None Kris Peck City Clerk (City Seal) 1 1 1 City Council Agenda Statement Meeting Date: November 17, 2025 To: City Council Through: Kat Sorensen, City Manager From: Tony Seiminski, Harbormaster Subject: Resolution 2025-112: Supporting Full Funding for the State of Alaska Municipal Harbor Facility Grant Program in the FY27 State Capital Budget in the Amount of $18,186,535 Background and justification: The City of Seward has received funding most recently in 2022 from the Harbor Facility Grant Program. The City of Seward appreciated the support given by other communities and would like to offer support in their request for funding. The grant program was started in response after the State of Alaska transferred responsibility for its state-owned harbors to the local respective municipalities, but many harbors were at the end of their useful life and in need of capital investment. A survey done by the Alaska Municipal League of Ports and Harbors estimated the repair or replacement of the former state-owned harbors has increased to at least $500,000,000. For FY27 many municipalities have grant applications pending with a total cost to the State of $18,186,535. The grant program has only been fully funded twice since 2006. The grant program is the City's best means to replace its dock and keep customer rate increases to a minimum. Renewing our support to keep this grant funded each year would benefit other communities and the City of Seward for future harbor improvements. The Grant program was established to provide financial assistance to municipal or regional housing authority owned harbor facilities. The Alaska Legislature passed legislation in 2006 that established a new 50/50 matching grant program call the Harbor Facility Grant Program. This grant program is funded on an annual basis at the discretion of the Alaska Legislature an consists of two tiers, Tier I and II. The first tier has priority and consists of major maintenance and repair of a harbor facility that was previously owned by the state and now is locally owned. The second tier consists of all other harbor facilities and those harbor facilities which have already received a Tier I grant. A harbor facility may only receive one Tier I grant but is eligible for multiple Tier II grants. 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. Complete the renovation of the Seward Boat Harbor Reference Alaska Statute 29.60.800 Strategic Plan: Other: rtification 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 Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool X X Available Fund Balance X Yes SMIC Parking Other Electric Water Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Administration Recommendation X Adopt Resolution Other: