The URL can be used to link to this page

Home My WebLink AboutRes2013-075 Sponsored by: Hunt 6.• CITY OF SEWARD, ALASKA RESOLUTION 2013-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,SUPPORTING THE SEWARD MARINE INDUSTRIAL CENTER EXPANSION PROJECT AT SEWARD, ALASKA WHEREAS,the Seward Marine Industrial Center's(SMIC)existing infrastructure,250-ton Marine TraveLift, 5,000-ton Synchrolift,and significant upland acreage offer ample space for vessel repairs, marine support services, cargo storage, staging, and future development; and WHEREAS,the SMIC basin is not adequately protected from ocean swells and boat wake action rendering SMIC's moorage structures unusable most of the year,negatively impacting the use and development of the entire facility,and causing damage to vessels and dock facilities due to the current undesirable wave environment; and WHEREAS, there is lack of safe moorage in Seward for large commercial vessels. Tugs, barges, and many other vessels often must anchor or "jog" within Resurrection Bay awaiting moorage. Many potential users are forced to bypass Seward altogether; and WHEREAS, Seward's central location is ideal for the provision of critical ship repair,fuel, moorage, and service facilities to vessels traveling through South Central and Western Alaska and up to the Arctic; and WHEREAS, increased petroleum exploration in the Beaufort and Chukchi Seas has led to increased supplies shipment and vessel over-wintering in Seward; and WHEREAS, the AVTEC Maritime Program has increased its training of Alaskans for marine industry jobs statewide, noting the value of the SMIC breakwater for future statewide economic growth, increased workforce development and employment opportunities training; and WHEREAS, the new UAF School of Fisheries and Ocean Sciences Research Vessel (RN Sikuliaq) will homeport in Seward. The Sikuliaq will support oceanographic and fisheries-related research in the Arctic. The SMIC breakwater would provide a protected basin for moorage and necessary maintenance for this vessel; and WHEREAS, Seward Ship's Drydock anticipates doubling its current employment to 100 jobs, other private industries have expressed interest in leasing industrial space at SMIC once the basin improvements are complete; and a protected basin at SMIC with adequate moorage and uplands development will better support existing and new businesses and provide a stable economic base with year-round jobs; and 11. WHEREAS, CDQ entities are actively exploring relocating their fleets back to Alaska. CITY OF SEWARD, ALASKA RESOLUTION 2013-075 _I Annual spending for maintenance of the largest entity's vessels is between five and ten million dollars($5,000,000-$10,000,000).Nearly twenty million dollars($20,000,000)is spent annually on moorage and vendor support. An additional two million dollars ($2,000,000) is estimated for crew airfare to reach vessels currently located outside of Alaska. Relocation of Alaska's CDQ fishing fleet close to the fishing grounds will create jobs and bring that revenue back to Alaska for Alaskans; and WHEREAS, the State of Alaska has appropriated twenty million four hundred thousand dollars ($20,400,000) for this work and the City is requesting the final seven million nine hundred thousand($7,900,000)required to complete the Phase 1 breakwater extension.The breakwater has a standalone value and utility to support harbor moorage and uplands development. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward fully supports requesting the final seven million nine hundred thousand ($7,900,000) from the State of Alaska in FY2015 to complete the Phase 1 breakwater extension. Section 2. This resolution shall take effect immediately upon adoption.p P PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14`"day of October, 2013. THE CITY OF SEWARD, ALASKA DDa Seawa , ayor AYES: Valdatta, Bardarson, Keil, Casagranda, Terry, Seaward NOES: None ABSENT: Shafer ABSTAIN: None ATTEST: ��OF SEh�gA, Johanna Kinney, CMC •, pity Clerk :V� .••p...... . City Seal) ;•? o\ 1: •ri • i SEAL ; . , --- •; . •a;/EOF PAP. '.•I.,......s" Council Agenda Statement r of sets. Meeting Date: October 14, 2013 a Through: City Manager Jim Hunt Agenda Item: Support for Seward Marine Industrial Center Expansion—Phase 1 Breakwater Funding Request BACKGROUND & JUSTIFICATION: Development of Seward Marine Industrial Center (SMIC) began in the early 1980s to serve as an industrial center and shipyard for commercial and fishing vessels. While existing infrastructure and lift facilities provide essential marine repair and support services,the basin does not have adequate protection from ocean swells and boat wake action. As a result,moorage at SMIC is unusable much of the year. A breakwater enclosing the basin at the western perimeter is essential to accomplishing the original goal of providing a safe harbor and moorage for large commercial vessels in Seward. Demand for additional moorage and laydown yard space in Seward continues to increase. The SMIC Expansion project will provide essential marine services to support oil and gas exploration and development, increased Arctic marine traffic,Alaska Railroad trans-shipment,UA research,AVTEC job training, possible home-porting of Coastal Villages Region Fund (CVRF) and/or other CDQ Fishing Fleets to Alaska, and other uses. Completion of the breakwater structure for the SMIC basin offers independent utility to the City of Seward as the project protects the $30 million investment the City has made in the existing SMIC facilities, ensures safer operations and moorage within the basin, and expands opportunities for future basin improvements and private development of the extensive upland acreage. The City of Seward has requested funding to complete the breakwater structures and basin development in its 2009 application for US DOT TIGER grant funding and with the 2012 and 2013 State Legislature. The City has received$20,400,000 from the State of Alaska and needs$7,900,000 in additional funding to complete the breakwater construction. Construction of the breakwater structures can occur in a single construction season, once approval to proceed is secured. INTENT: State the City's intent to request $7.9 million in State of Alaska funding that will: (1) Establish breakwater structures for the SMIC basin to accommodate increased statewide demand for large vessel moorage and support services;(2)Preserve the City's existing investment in dockage facilities and services; (3) Reduce damage repair costs and annual maintenance expenses for the facility; (4) Encourage economic development for the community and region and facilitate private sector participation in future improvements. 13� CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Page 16"Improve and expand port facilities to attract more maritime trade. Complete development of SMIC as a revenue source with year-round employment 1. X opportunities." Page 13, "Approve resolutions of support for endeavors and projects of various organizations and individuals which benefit the community." Strategic Plan (document source here): Page 5 "Attract New Industry" 2 X Page 7 " 3. Other (list): SMIC Development Plan: Entirely X FISCAL NOTE: The City of Seward has received $20.4 million in funding to begin Phase I of the SMIC what breakwater extension project, and this request for an additional $7.9 million will enable completion of Phase I of this project. Approved by Finance Department: krit,5_ ATTORNEY REVIEW: Yes No X RECOMMENDATION: the City Council approve Resolution 2013- supporting the request to the State of Alaska for the final seven million nine hundred thousand ($7,900,000) in FY2015 to complete the Phase 1 breakwater extension. c't)