HomeMy WebLinkAbout110718 PACAB PacketCity of Seward
Port and Commerce Advisory
Regular Board Meeting
Harbormaster of the Year Award Winners
Jean Barrett (Dillingham) & Norm Regis (Seward)
November 7, 2018
SEWARD PORT
1 COMMERCE 1�
4
ADVISORY BOARD
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NOVEMBER 7, 2018 12:00 PM Council Chambers
REGULAR MEETING
Christy Terry
1.
CALL TO ORDER
Chair
Term Expires 2019
2.
PLEDGE OF ALLEGIANCE
Bruce Jaffa
Vice Chair
3.
ROLL CALL
Term Expires 2021
Carl Hughes
4.
Citizens' comments on any subject except those items
Board Member
scheduled for public hearing. [Those who have signed in
Term Expires 2020
will be given the first opportunity to speak Time is limited
to 2 minutes per speaker and 30 minutes total time for this
Colby Lawrence
agenda item.]
Board Member
Term Expires 2019
5.
Approval of agenda and consent agenda [Approval of
Laura Schneider
Consent Agenda passes all routine items indicated by
Board Member
asterisk (*). Consent Agenda items are not considered
Term Expires 2020
separately unless a Board Member so requests. In the
Linda Paquette
event of such a request, the item is returned to the Regular
Board Member
Agenda.]
Term Expires 2021
6.
SPECIAL ORDERS, PRESENTATIONS AND
Erin Lemas
REPORTS
Board Member
Term Expires 2021
A. JAG presentation — Operations Update
Jeff Bridges
B. AKRR - Christy Terry
Interim City Manager
C. Chamber Report - Cindy Clock
D. Harbormaster Report — Matt Chase
Brennan Hickok
Assistant City Manager
E. Administration — Brennan Hickok
Norm Regis
Harbor Master
GeNeil Flaherty
Executive Liaison
City of Seward, Alaska PACAB Agenda
November 7, 2018 Page 1
1191
7. UNFINISHED BUSINESS — None.
8. NEW BUSINESS
*A. Approval of the May 2, and October 3, 2018 Minutes
B. Discussion and Recommendations on City, Federal, State and Local Priorities.
C. Annual Review SMIC Development Plan to track accomplishments, changes
and omissions.
D. Set November Work Session.
E. 2019 PACAB Report Schedule to City Council
F. Vessel Property Tax updates
G. Sewer and Water Utilities updates
H. Discuss December Regular Meeting schedule
9. INFORMATIONAL ITEMS AND REPORTS
A. Letter from Interim City Manager
B. PACAB Goals calendar 2018
10. BOARD COMMENTS
11. CITIZEN COMMENTS [5minutes per individual — Each individual has one
opportunity to speak]
12. BOARD AND ADMINISTRATIVE RESPONSE TO CITIZEN'S COMMENTS
13. ADJOURNMENT
City of Seward, Alaska
November 7, 2018
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PACAB Agenda
Page 2
RAILROAD
November 7, 2018
Port and Commerce Advisory Board Port of Seward
City of Seward TEL 907.265.2209
Report to the Port and Commerce Advisory Board
October Vessel Traffic -
17 large vessels including Fuel and Freight Barges; Research and Fishing Vessels; Landing
Crafts and Tugs
3 long term dockings due to scheduled maintenance and repairs
October Events held at the Cruise Ship Terminal-
* Seward Music and Arts Festival October 5-7, 2018
* Alaska Association of Harbormasters and Port Administrators Conference Banquet held at the
Terminal on October 10, 2018
* Pioneers of Alaska Annual Conference October 17-20, 2018
* City of Seward Community Halloween Carnival October 31, 2108
Upcoming Events at the Cruise Ship Terminal -
Kenai Crewsers Rowing Club hosting the 2018 Seward Holiday Arts and Crafts Fair November 30
and December 1.
• Working with City of Seward to set final weekly dates for Archery.
• Seward Safety Ball February 23, 2018
• Marathon Wrestling Tournament March 1 and 2, 2018.
Other Items -
Piling repair contract issued to Global Diving. This is our annual Cruise Ship Dock maintenance
to extend its useful life that will begin as soon as materials arrive.
•
ARRC/City of Seward partnership with ARRC covering the transportation and fillings costs
moving gravel from the Lowell Creek Tunnel outfall. We continue to fill our large area at the north
end of the Seward Terminal Reserve just west of the airport. This is mutually beneficial to both
parties to help with the City's mitigation at the bridge and ARRC's development of additional
commercial property.
Boat Storage area permitted to Exit Marine at the Seward Coal Loading Facility property just east
of the City's North Harbor.
Freight Train scheduled for the second week in November. This train was originally scheduled for
October but delayed due to track damage/issues due to flooding event.
ChristyTerry, CPE
Seward Port Manager
ter c akrr.com
907.265.2209 office 1907.422.7071 mobile
mailing: PO Box 95, Seward, AK 99664-0095
physical: 913 Port Avenue, Seward, Alaska
web: www.AlaskaRailroad.com
A,L-Ah..�'X-r
RAILROAD
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Report to PACAB NOVEMBER 7, 2018
Seward Chamber of Commerce, CVB, C/ndy Clock
NEW MEMBERS IN OCTOBER:
Altman, Rogers & Co. Chugach Adventures (Ari Stiassny, Girdwood — rafting)
The Seward Chamber Board of Directors is advocating for these issues:
-Letter of Support for DOT Grant — Bridge Replacement
-Seasonal Traffic Light at Port & Seward Highway — pedestrian crossing
-Additional Free Shuttle seating for 2019 due to increased Port O'Call ships
-The Community Watch Grant Application (which was sent to Chief Clemons and City Manager Bridges)
The Seward Music & Arts Festival was hugely successful with the first ever SMAF Train, thanks to Cliff Krug.
If you didn't make it over there — you really missed out! The hopes for 2019 are that the train will spend two
nights in Seward.
I attended the Alaska State Chamber Conference in Fairbanks Oct 23 — 25. `Renaissance" in North Slope
drilling due to opening up of more land and new technologies. The Alaska Chamber is looking at association
group insurance to reduce costs for members. Since the Seward Chamber is a member of the Alaska Chamber
— those insurance options would be available to our membership. More on this to follow.
All items for the Nov 18-20 Pacific Marine Expo have been shipped via Carlile. We present at the show as the
Port of Seward with Christy Terry, Terry Federer, Norm Regis and Brennan Hickok will also attend.
The Chamber Board appointed Geri Nipp, GM of KFT to replace Ron Wille and complete his term of two years.
Chamber members will see a slate of candidates to approve for the other Board seats coming to you via
Constant Contact.
Seward will host an event as part of Alaska Start -Up Week on November 15"' at the Community LibraryN a
panel discussion "Taking the First Step" from 6:00 — 7:30 pm.
Chamber Lunch Schedule—
Nov 9 — Dan Sullivan, US Senator (Is a larger venue needed?)
Dec 14 — Amy Hankins — Seward Bike Park
Jan 11— Cindy Clock State of the Chamber, Annual Mtg
Jan 25 — Jen Ransom, Student Success Liaison
Feb 8 — Mayor Pierce, Borough Update & EcDev
Feb 22 - Alicia Chryss, Seaview
Sade the Date! January 25a' Community Awards
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PACAB HARBOR
Conducted construction meetings with Hamilton Construction and R&M for the Breakwater project
on 10-18-18, 10-25-18, 11-1-18 and 11-08-18.
2. The 330 ton will require a two day shutdown when the paving company shows up. (Still have not
showed up)
3. The new fisherman float is in place, electrical and water are being installed.
4. The fenders have been installed at the North Dock, Hamilton Construction is finishing with the
fender tie-ins to the dock.
5. The harbor has 4 sites that will supply year round water, the end of F -float, the beginning of Z -float,
the T -dock and on the upland trestle of F -float for local citizens.
6. Conducted construction meetings with PND and Hamilton Construction on 10-16-18,10-23-18, 10-
30-18 and 11-06-18 for the South Harbor Launch Ramp
7. The South Harbor Launch Ramp is closed for the construction phase; the completion date is May
2019.
8. The South harbor launch ramp utility phase is almost complete, waiting on one utility to finish their
tie in.
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City of Seward, Alaska Port and Commerce Advisory Board Minutes
May 2, 2018 Volume 3, Page 342
CALL TO ORDER
The May 2, 2018 regular meeting of the Port and Commerce Advisory Board was called
to order at 12:15 PM by Chair Darryl Schaefermeyer.
OPENING CEREMONY
Andrews led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Darryl Schaefermeyer presiding, and
Christy Terry Carl Hughes Laura Schneider Brooke Andrews
Also Present
Norm Regis, Harbormaster
GeNeil Flaherty, Executive Liaison
Absent
Bruce Jaffa Colby Lawrence
Ron Long
SPECIAL ORDERS, PRESEN'T'ATIONS AND RETORTS
Alaska Railroad Report -- Christy Terry
Chamber of Commerce Report — Cindy Clock
Harbormaster Report — Norm Regis
Administration Report — Ron Long (Absent)
CITIZEN'S comMENTS ON ANY SUBJECT EXCEPT won ITEMS SCHEDULED
FOR PUBLIC HEARING
NONE
INFORMATIONAL ITEMS, REPORTS, AND PRESEN'T'ATIONS
1. Alaska Railroad Monthly Report — Given Electronically
2. Chamber of Commerce Report — Given Electronically
3. Harbor Monthly Report — Given Electronically
4. Administration Report —
City of Seward, Alaska Port and Commerce Advisory Board !Minutes
May 2, 2018 Volume 3, Page 343
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Terry/Schneider)
Motion Passed
Motion (Schneider/Andrews)
Motion Passed
UNFMSHED BUSINESS- NONlE
NEW BUSINESS -
Motion (Terry/Andrews)
Motion Passed
Motion (Terry/Andrews)
Motion Passed
OTHER NIEW BUSINESS
Approval of Agenda and Consent Agenda
Unanimous
Add the approval of April 4 meeting
minutes to the Consent Agenda.
Unanimous
Move for the approval of resolution to
Council regarding Andy Baker and the
Lowell Canyon Hydro Project
Unanimous
Vote and approve on summer Hiatus May
16 through end of August with the caveat
that if anything comes up especially
regarding Andy Baker and the Lowell
Canyon Hydro Project or with the
water/sewer tariffs that a special PACAB
meeting be scheduled.
Unanimous
Discuss and set the PACAB goals Calendar for the remainder of 2018.
Board Comments:
Schneider thanked everyone for supporting the SMIC launch off and for coming out for the
event.
Hughes thought that Friday night of the event was absolutely amazing and it was well done.
Good job and congratulations.
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City of Seward, Alaska Port and Commerce Advisory Board Minutes
May 1, 1018 Volume 3, Page 344
Terry thanked Chairman Schaefermeyer for his years of service. It is great that the private
sector partnerships with the Chamber, the City and the support form the PACAB body were able
to come together for the SMIC relaunch and it was a great turn -out.
Regis also thanked everyone for their support and involvement with the SMIC event. Also
thanked Schaefermeyer for all of his years of service. He mentioned how Scott Ransom was
impressed with all of the work that had been done at SMIC.
Schaefermeyer thanked everyone for all of their work and keep up the good work and he
mention that we have a great board. He is looking forward to what is to come. He also thanked
Cindy Clock and told everyone that we have a great Chamber of Commerce and appreciates their
support.
CI'T'IZEN C®NEKENTS - NONE
BOARD AND ADMMSTRATIVE RESPONSE TO CITIZENS' C® NTS — NONE
ADJOURNMENT
Meeting was adjourned at 1:26
GeNeil Flaherty
Executive Liaison
(City Seal)
Daryl Schaefermeyer
Chair
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City OSeward, Alaska Port and Commerce Advisory Board Minutes
October 3, 2018 Volume 3, Page 345
CALL TO ORDER
The October 3, 2018 regular meeting of the Port and Commerce Advisory Board was
called to order at 12:06 by Vice Chair Christy Teary
PLEDGE OF ALLEGIANCE
Regis led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Christy Terry (vice chair), and
Carl Hughes Laura Schneider Bruce Jaffa Colby Lawrence Carl Hughes
Also Present
Norm Regis, Harbormaster
GeNeil Flaherty, Executive Liaison
Brennan Hickok, Assistant City Manager
Jeff Bridges, Interim City Manager _
CITIZEN'S COMMENTS ON ANY SUBJECT EXCEPT 'THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
QIII "
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Hughes/Lawrence) Approval of Agenda and Consent Agenda
Motion Passed Unanimous
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Alaska Railroad Report — Christy Terry
Chamber of Commerce Report — Cindy Clock
Harbormaster Report — Norm Regis
Administration Report — Brennan Hickok
PUBLIC HEARINGS
NONE
UNFINISHED BUSINESS
NONE
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City of Seward, Alaska Port and Commerce Advisory Board Minutes
October 3, 2018 Volume 3, Page 341a
NEW BUSINESS -
Motion (Jaffa/Schneider) Nomination of Chair
Jaffa moved to nominate Terry as chair and
close the nomination. Schneider seconded
the motion.
Motion Passed Unanimous
Motion ('I`erry/hughes) Nomination of Vice Chair
Terry nominated Jaffa for vice Chair and
Hughes seconded the motion.
Motion Passed
Unanimous
Airport Improvement Plan
There was discussion regarding the Airport
Improvement Plan and it was decided to
continue the discussion at a later date.
Coast Guard housing
No information was available at this
meeting. It was decided to move to a later
date when more information will be
available.
SMIC uplands update
Regis stated that the yard is almost full and
the ongoing work is almost completed. He
also stated that the crane is commissioned
and any interested party that wants to use it
can go to the Harbormaster's office to take
the test for how to operate it, which is
required.
Motion (Terry/Jaffa)
Work session for October
Tour of SMIC at Noon on October 17th.
Motion Passed Unanimous
Discussion of PACAB calendar
OTHER NEW BUSINESS
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City of Seward, Alaska Port and Commerce Advisory Board Minutes
October 3, 2018 Volume 3, Page 347
Board Comments:
Schneider stated it was good to be back and congratulations to the chair.
Hughes concurred with Schneider and is looking forward to the upcoming months.
Lawrence also concurred with Schneider and Hughes.
Jaffa thanked the body for the vote of himself as Vice Chair and thanked Terry for her time and
congratulated her as Chair.
Terry stated she was working with the Harbor for the Harbormaster's Conference. Invited all to
come Tuesday night during the conference for the vender's fair. She asked administration to try
and get JAG to the November meeting for an update. Also brought up the 2 empty board spots
and would like an update. She mentioned that at the next Council meeting RES 2018-081
regarding the Lowell Canyon Hydra Study would be on the agenda and encouraged board
members to go to the meeting. She stated that looks forward to being the chair.
CITIZEN COAUdENTS
Matt Chase asked about the Blue Pipeline Initiative and if it will interfere with the ARCADIS
plan.
BOARD ANIS ADAMUSTRATIVE RESPONSE TO CITIZENS' COMMENTS
Terry stated that she didn't think that the 2 entities would be in conflict.
Jaffa asked for clarification on what the Blue Pipeline is.
Schneider explained the it is a group that focuses on Ocean based businesses and a `Blue
Economy." Justin Sternberg is an advisor in Seward and will be helping others with their
businesses. It doesn't focus on SMIC.
Bridges congratulated the Chair.
Hickok brought up the Council will be reviewing City, State and Legislative 2019 priorities at
the November 26a' Council meeting. Suggested that the board review and possible add to it.
Especially the Airport Improvements.
ADJfOURNN ENT
Meeting was adjourned at 1:28 p.m.
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City of Seward, Alaska
Port and Commerce Advisory Board Minutes
October3, 2018 Volume 3, Page 345
GeNeil Flaherty
Executive Liaison
(City Seal)
Christy Terry
Chair
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SEWARD MARINE INDUSTRIAL CENTER
DEVELOPMENT PLAN
Prepared by
Seward harbormaster and Community Development Department
in Cooperation with the
Seward Port and Commerce Advisory Board
Adopted by Resolution 2018-00
on January 3, 2018
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TABLE OF CONTENTS
INTRODUCTION........................................................................................................................1
THEPLAN...................................................................................................................................1
BASIC MARINE INFRASTRUCTURE.................................................................................. 3
Basin.................................................................................................................................. 3
Docks................................................................................................................................. 3
ShipliftOperations........................................................................................................... 4
Uplands.............................................................................................................................4
MANAGEMENT.........................................................................................................................5
LANDUSE................................................................................................................................... 5
Platting.............................................................................................................................5
LandValues...................................................................................................................... 5
LandUses.......................................................................................................................... 6
Parksand Recreation...................................................................................................... 6
MARKETING.............................................................................................................................. 6
TRANSPORTATION.................................................................................................................. 7
Roads................................................................................................................................. 7
Parking.............................................................................................................................. 7
Airport..............................................................................................................................7
PUBLIC FACILITIES AND SERVICES.................................................................................. 7
PublicFacilities................................................................................................................ 7
PublicSafety..................................................................................................................... 8
PublicUtilities.................................................................................................................. 8
ENVIRONMENT AND WASTE MANAGEMENT................................................................ 8
EnvironmentalConcerns................................................................................................ 8
WasteManagement......................................................................................................... 9
APPEARANCE............................................................................................................................ 9
Landscapingand Beautification..................................................................................... 9
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SIGNS, ZONING, BUILDING.................................................................................................10
Signs................................................................................................................................10
Zoning.............................................................................................................................10
Buildings.........................................................................................................................10
PLANIMPLEMENTATION...................................................................................................10
Adoptinga Plan..............................................................................................................11
Usethe Plan....................................................................................................................11
APPENDIX..................................................................................................................................11
Exhibit A - Site Map: Fourth of July Creek Valley........................ .............................12
Exhibit B - Preliminary Subdivision Layout...............................................................13
Exhibit C - Project Overview: 1980 Project Description...........................................14
Exhibit D - ARCADIS 2016 Site Plan...........................................................................15
ExhibitE - Lease Sites....................................................................................................16
Exhibit F - Utility Layout
1. Power Utilities.........................................................................................17
2. Sewer Utilities..........................................................................................18
3. Water Utilities.........................................................................................19
H
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SEWARD MARINE INDUSTRIAL CENTER
DEVELOPMENT PLAN
INTRODUCTION During the mid -1970'x, the City began developing a plan to create
an industrial complex at the Fourth of July Creek area to service the maritime industry. The
City annexed the valley in 1977, acquired lands through the Alaska Statehood Act Municipal
Entitlement, and completed the 1979 Fourth of July Creek Industrial Development
Feasibility Study. That study identified four examples of industries that would be more likely
than others to locate in the Fourth of July Creek area: fisheries, shipyard, petrochemical
processing, and heavy industry such as ore refining and bulk freight handling.
The foundation for the project was a shipbuilding facility proposed by the Danish firm
Burmeister -Wain to meet the high demand for new vessels in the king crab fisheries. With
the crash of the fish stock in 1980, the project evolved into a mix of ship repair facilities,
general cargo, fisheries processing, and other industrial uses. The project today is essentially
as described in the 1980 Century -Quadra report entitled Fourth of July Creek Industrial
Marine Park Project Description and shown on Figure 2 - Project Overview and Figure 3 -
Site Plan (Appendix Exhibits C & D).
Upon completion of a comprehensive 1981 Environmental Impact Assessment, the City
embarked on a multi-year construction project that ultimately invested the majority of the
City's share of the port bonds and State oil revenues in an access road, the relocation of
Fourth of July Creek, a retaining dike, basin, breakwater, and shiplift. With a State grant,
new investment work has been done to the North Dock and a new floating dock for a total
investment of approximately $65 million.
Access, utilities and land availability helped spawn development of the sawmill and the
prison within the boundaries of the Fourth of July Creek valley complex. The shiplift has
been operational since 1985, and a building was erected to cover large barges and vessels,
new break room, and machine shop buildings. Development activity continues to occur in
the area known as the Seward Marine Industrial Center (SMIC).
THE PLAN
GOAL An action -oriented document to guide the City and private enterprise in
completing the development of a vibrant and successful marine industrial
center
The Seward Marine Industrial Center Development Plan is a direct outgrowth of the
community's desire to enhance, encourage, and promote an atmosphere favorable for
additional private sector economic development at the Seward Marine Industrial Center.
For the purpose of this plan, the Seward Marine Industrial Center is considered to include
the 128.5 acres immediately adjacent to the harbor basin, south of Spring Creek and west of
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the prison property (Tract A and Tract B, Johnson—Swift Subdivision, USS No.1651, Parcel
ID 14533004 [Appendix Exhibits A and B]).
The Seward Marine Industrial Center Development Plan becomes a component of the City
of Seward Comprehensive Plan. Whereas the comprehensive plan contains both advisory
and binding elements, this Plan contains only advisory elements comprised of goals, issues,
and actions. The binding element of the comprehensive plan is the Land Use Plan which is
a legal document that must be adhered to and can be revised only by ordinance.
As part of the process of finalizing the Plan, the City solicited initial suggestions from various
public boards and commissions and interested groups such as the Seward Chamber of
Commerce. The draft Plan was presented to the public at advertised public hearings and
through review by the aforementioned groups. The issues raised and recommendations
made by those individuals and organizations are reflected in this document. The original
Plan was approved by the Seward City Council in 1995. It was then updated in 2008 and
reviewed in 2011. The most recent update was completed in 2018.
An effective plan is one which is implemented. The City of Seward has a track record of
accomplishing actions outlined in its plans. Recommendations from previous plans that have
been accomplished within the SMIC area include:
Syncrolift with upland rail system
315 ton Travelift
• Bulk fuel facility
• 430' North Dock
• Fisheries dock and plant improvements
• New DEC approved outfall
• Electrical substation
• Primary electrical service
• 34 individual power stalls, water, and sewer systems
• Secondary sewer treatment plant
• Preliminary real estate subdivision plat
• Some fill and cargo laydown area
• Some utility improvements including area lighting
• Campground improvements
• Some real estate development (leases and sales)
New 400 and 800 Amp service located at the North Dock
• Rubble mound breakwater
Wash down pad
The following items have been funded but not yet accomplished (should be completed by
summer 2018):
10 -ton crane
315' floating dock (Fisherman's Float)
• Building for wash down pad
• Fenders on North Dock
u Widening of the 315 ton Travelift and Travelift pit
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BASIC MARINE INFRASTRUCTURE
GOAL Continuation of Upland Development
The Basin envisioned by the 1980 Century -Quadra concept was enclosed, protected and
dredged to -21 feet mean lower low water (MLLW) to accommodate medium -draft vessels
for ship repair, cargo off loading, and general moorage. The basin has been dredged to design
with -25 foot berths adjacent to the Shiplift Dock and the North Dock. The basin is protected
by a rip rap breakwater along the east shoreline, by a filled sheet pile cell breakwater along
the south and southwest, and by sheet piling along a section of the North Dock. It is still open
to the bay along the west and northwest sides.
Unlike a rock rip rap breakwater, the gravel -filled interconnecting sheet pile cellular
cofferdams making up the South Breakwater require regular maintenance to prevent
failure.
1. Monitor and repair South Breakwater anodes as needed.
Docks described in the 1980 Century -Quadra concept included an inner dock along the
north basin shoreline, deep -water sheet pile cell breakwater and dock enclosing the basin, a
ship repair dock, a boat ramp, and other miscellaneous docks. A ship repair dock, small fish
processing dock, barge ramp, and medium draft cargo dock have been constructed and are
in operation.
There is a growing demand for additional General -Purpose Moorage dock space.
1. Construct a north -south dock approximately 315' to increase moorage within the
basin (under construction at this time).
The North Dock will be upgraded with new fendering and a 10 -ton crane, during the
fall/winter of 2017 and winter/spring of 2018.
2. Surface the North Dock and staging areas with concrete, asphalt, crushed rock, or
Roto -Mill (crushed asphalt) including the installation of drainage pipes.
The Barge Ramp has never been completed and there is a concern about its need.
3. If the Barge Ramp is deemed unnecessary, delete it to create additional dock face.
4. Maintain the Fisheries Dock per lease agreement.
The 315 ton Travelift Dock is being widened to accommodate the newly widened Travelift.
Estimated completion is spring 2018.
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The Shiplift Dock is maintained per a Maintenance and Operating (M&O) agreement with
the Syncrolift lessee.
5. Repair or replace Syncrolift dock ladders, bumpering system and corrosion control
of the pipe piling in the splash zone by application of a protective coating.
6. Monitor maintenance of the Shiplift Dock per M&O agreement for the useful life of
the facility.
Shiplift Operations are divided between the mobile 315 ton Travelift and the 5000 long
ton Syncrolift platform. The Syncrolift was an integral part of the original SMIC concept
plan. The Travelift was purchased and put into operation by the City in 1990 and upgraded
to a 315 ton Travelift in 2015 to fill the demand for lifting vessels too small to economically
use the Syncrolift platform but too large for the City's 50 ton Travelift.
A number of improvements relative to the 315 ton Travelift operation have been identified.
1. Expand existing water and electrical systems in the boat storage area.
2. Encourage the development of full-service work stations for major maintenance/
construction projects on vessels in order to limit the degree of maintenance allowed
in the storage area.
3. Provide additional restrooms as needed.
The Syncrolift, although owned by the City, is operated by a contractor through a
Maintenance and Operating Agreement.
The Uplands forming SMIC were for the most part created from the material dredged
during the formation of the basin. The original design called for a grade of 18 feet above
MLLW. The roads are to grade, but some of the land is below desired grade. Drainage
ditches were placed along Delphin and Olga Streets and the north property line to divert
water runoff in the summer. During winter, ditches and culverts freeze causing runoff to
pool in the lower areas behind roads.
1. Provide engineer -designed drainage.
2. Fill and grade the storage area to the correct elevation for the continued
improvement of drainage.
3. Add to Article 18 of all new leases, under Maintenance, "Do not push snow into
ditches."
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MANAGEMENT
GOAL A management level that is responsive to the needs of its customers and users,
adequately serves the public's needs, protects the City's investment, and
ensures public safety
Security and concerns related to potential environmental pollution grow as the number of
boats, cargo, and equipment on-site increases. Sufficient revenues are necessary for effective
on-site management and security of this public facility.
I. Seek a rate of return from the use of public facilities, land assets, and equipment that
will adequately cover deferred maintenance and replacement costs.
a. Examine electric rate method of calculating charges to users
b. Examine credit card rate method of calculating charges to users
2. Continue to review the Upland Boat Work Policy and Best Management Practices to
ensure compliance with the Clean Water Act and Local, State, and Federal laws and
regulations where they apply.
3. Ensure that the facility and uses are consistent with the requirements of the Maritime
Security Act of 2002 33.CFR 104.105 and maintain the Facility Use Plan.
LAND USE
GOAL Sound, maximized, and coordinated development of private and public
uplands and facilities in support of the needs of the users and visitors
Platting The City has formulated a subdivision of SMIC and the Fourth of July Creek
Valley. The subdivision plat dedicates roads and provides as -built utility and access
easements. It creates legal lots for existing leases and leaves the majority of the SMIC area
in blocks.
1. Maintain an accurate map through survey and plat amendments for all current and
future leases.
Land Values In order to provide adequate public services and maintenance at SMIC, it is
important that the City receive a fair market value—the current rate is 8% annually of the
appraised value—for the use of its limited land assets.
1. Adjust the annual rental payment every rive years. The adjusted annual rental
payment shall be the appraised fair market rental value of the leased land at the
highest and best use of the leased land.
5
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2. Increase the annual rental payment every year in an amount that reflects the
increase, if any, in the cost of living for the previous year as stated in the Consumer
Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100
("CPI"), as published by the United States Department of Labor, Bureau of Labor
Statistics.
Land Uses SMIC is zoned Industrial. The Seward Zoning Code, Table 15.10.225 Land
Uses Allowed, establishes what uses are allowed within that district. Uses allowed within the
SMIC should focus on strengthening and enhancing the area as a center for marine and other
compatible industries.
1. Review Table 15.10.225 to ensure the uses listed are compatible with the overall
intent of the SMIC area.
Parks and Recreation Under State statutes, the City is required to provide public access
along Spring Creek, Fourth of July Creek, and Resurrection Bay. Although the area is
principally industrial, limited recreation opportunities can be made available without
interfering with surrounding industrial uses. .
1. Maintain access from Nash Road to the mouth of Spring Creek and provide a
camping area, and include signage of the access route.
2. Maintain separation between the campground and industrial uses. A chain link fence
will be installed to separate the North Dock from the Campground.
MARKETING
GOAL A comprehensive marketing program primarily targeting fisheries, ship
repair, and marine transportation industries along with a healthy and
complementary mix of commercial support businesses
Current City marketing efforts include: attendance at trade shows, overseas trade missions,
brochures, and advertising.
1. Maintain a sign along Nash Road and central to the SMIC area showing what lands
are available for lease (Appendix Exhibit E).
2. Maintain a fair market value base line from which leases will be negotiated.
3. Continue to encourage multiple users.
4. Evaluate utility rates to encourage more usage while ensuring a fair return to the
public utility system.
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5. Continue to support the Seward Chamber of Commerce as the marketing arm of the
City of Seward.
TRANSPORTATION
GOAL An adequate transportation infrastructure that will serve the needs of the
industrial complex, allow for growth, and attract new business to the
community
Roads Nash Road provides the only ground access to SMIC and the Fourth of July Creek
area. To adequately serve SMIC and attract new industries, it is of the utmost importance to
maintain and improve the public road system to the highest standard economically possible.
1. Postpone paving interior SMIC streets until site and utility developments are
completed.
Although Parking has not been a problem in the past, as more activity develops it will
become imperative that vehicles park in designated areas off public roads and away from
equipment activity.
1. Ensure that all lease sites include adequate area to comply with parking
requirements set forth in the zoning code, and that lessees provide on-site parking
for employees and customers.
2. Maintain signage in parking areas in support of the public docks.
Although not directly associated with SMIC, having a well-maintained Airport is an
important transportation link for the delivery of parts, goods, and services to the industrial
center businesses.
1. Continue to work with the Alaska Department of Transportation and Public
Facilities to improve airport facilities and protect it from river flooding and erosion.
PUBLIC FACILITIES AND SERVICES
GOAL A full range of public facilities and services adequate to provide a safe and
comfortable work environment for users and visitors
Public Facilities are currently limited from available to non -available.
1. Include construction of an additional public restroom/shower facility in the City's
Capital Project Plan.
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2. Improve paving, fill, fencing, and storm water drainage collection and treatment
infrastructure as development occurs.
Public Safety The distance from town limits police coverage to an occasional patrol and
also increases fire response time. Although a pumper/ladder truck is located in the harbor
storage building, there are no scheduled trained fire department personnel on-site to operate
them. The fire truck is staged on-site and ready for volunteer personnel.
1. Evaluate each new development as to its impact on fire and police services.
2. Complete water system to loop all lines or upsize all cross -feeder lines and provide
additional fire hydrants as needed.
3. Identify and reserve a site for a fire station to serve the Fourth of July Valley area.
4. Include a separate fire station in Capital Project Plan, to accommodate more
and/or larger equipment and supplies to support increased industrial development.
Possibly include a joint small office for Seward Police.
5. Explore possible cooperative arrangements with Spring Creek Correctional Facility
staff to provide initial fire or other public safety needs.
Public Utilities such as primary water, sewer, and electrical service systems have not been
extended throughout the undeveloped SIVIIC areas (Appendix Exhibits F143). The cost of
extending these utilities creates a disincentive to the establishment of smaller businesses.
1. Improve the water and electrical systems in areas associated with the 315 ton
Travelift to accommodate increased public use.
2. Include in City capital planning the extension of electrical, sewer, and water
throughout the industrial area.
3. Support updating Seward City Code to facilitate utility extension development.
4. Continue to place all electric utilities below ground.
ENVIRONMENT AND WASTE MANAGEMENT
GOAL A high level of environmental regulatory compliance and a clean work
environment
Environmental Concerns The objective of the City is to maintain a clean work
environment and to protect the land, water, and air to the highest degree possible without
making the area prohibitive for the type of activities associated with industrial areas.
8
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1. Require compliance with all rules and regulations of the Environmental Protection
Agency and the Alaska Department of Environmental Conservation.
2. Maintain policies and procedures for monitoring and ensuring vessel storage/ repair
site clean-up.
3. Maintain and distribute use guidelines to lessees, operators, and users of the area for
ship repair—including minor repairs, sand blasting, and painting.
Waste Management is integral to managing a successful industrial area where large
amounts of waste are generated. Separation of steel, wood, and general garbage is required
at the Kenai Peninsula Borough (KPB) solid waste facility. It is illegal to dump used oil in
solid waste containers.
1. Continue implementation and improvements of a program to control the separation,
collection, recycling, and disposal of waste generated at the industrial center in
accordance with established environmental policies and regulations/ requirements of
the KPH solid waste facility.
2. Continue to improve used oil collection procedures and disposal facilities to meet the
demands of user groups and to ensure a clean environment.
3. Improve methods to monitor waste material disposal to control and reduce the costs
associated with the collection of solid and liquid waste materials.
4. Maintain a Storm Water Pollution Prevention Plan (SWPPP).
APPEARANCE
GOAL A high standard of aesthetic appearance and cleanliness through landscaping,
litter control efforts, and development of public amenities that are in keeping
with the industrial maritime theme of the area
Landscaping and Beautification Industrial areas do not have to be barren and devoid
of natural aesthetics. An atmosphere that is pleasant and attractive to users and visitors alike
can be cultivated through thoughtful planning and landscaping efforts.
1. Where possible, reduce scrap metal storage, trash, and other materials that may be
considered offensive to the casual observer.
2. Ensure that all businesses comply with City codes regarding the collection and
disposal of trash.
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24191
SIGNS, ZONING, BUILDING
GOAL A high level of public and private compliance with Seward City Code
Signs Adequate public signing is important to provide directions, identify streets, point out
public facilities, and post rules and regulations for visitors. Private signing identifies places
of business.
1. Review public signing to ensure that it is adequate to the needs of the public and the
City.
2. Ensure private signing meets Seward City Code.
3. Maintain a sign along Nash Road identifying and welcoming visitors to the Seward
Marine Industrial Center.
4. Maintain a sign denoting lands for lease with contact information.
5. Support north and southbound directional signage to SMIC at the corner of the
Seward Highway and Nash road.
Zonins code development requirements regulate open space for fire prevention/fighting,
air and light.
1. Recognize that current zoning codes could limit necessary and appropriate
development.
2. Support variance requests for height and set -back requirements as approved by the
Planning and Zoning Commission.
Buildings constructed to code are important to ensure safe working conditions and to add
to the community tax base. The City has adopted building, fire, mechanical, electrical, and
plumbing codes.
1. Ensure that all structures, permanent or temporary, are constructed to adopted
building and fire code standards.
PLAN IMPLEMENTATION
GOAL Adoption of the plan by resolution of the City Council and implementation by
all identified participants
1b
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For the City of Seward to realize the benefits of the SMIC Development Plan and thereby
ensure sound growth and development, actions must be taken not only by the City of Seward
but by many other players within the community and the Borough, State, and Federal
Governments.
Following are specific actions which are necessary to ensure the successful implementation
of this Plan:
Adowtine a Plan shows commitment and establishes policy. Council should, by resolution,
adopt the Plan based upon recommendations of the Port and Commerce Advisory Board
and the Planning and Zoning Commission.
Use the Plan to guide the City of Seward in the appropriate quality growth and
development of the SMIC. Consistent with its original intent, the Plan will remain flexible.
While it is intended that all actions presented in this Plan will be implemented, it is
recognized that changing conditions in the future may necessitate modifications of planned
actions or the introduction of additional actions to satisfy local needs. The City recognizes
the critical role of plans as key program documents to guide the community's capital
budgeting process.
It is recommended that the SMIC Development Plan be reviewed annually and updated
within five years, or more often as needed. An annual review will help track
accomplishments, changes, and inadvertent omissions.
APPENDIX (The attachments must be updated and kept current.)
Exhibit A - Site Map: Fourth of July Creek Valley
Exhibit B - Preliminary Subdivision Layout
Exhibit C - Project Overview: 1980 Project Description
Exhibit D - ARCADIS 2016 Site Plan
Exhibit E - Lease Sites
Exhibit F - Utility Layout
1. Power Utilities
2. Sewer Utilities
3. Water Utilities
11
26191
Exhibit A - Site Map: Fourth of July Creek Valley
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Exhibit B - Preliminary Subdivision Layout
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Exhibit D - ARCADIS 2016 Site Plan
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Exhibit E - Lease Sites
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UPLANDS DEVELOPMENT STUDY
October 2016
a& SMAC '04IDEk ARCADIV
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35191
ver smic
SEWARD MARINE INDUSTRIAL CENTER EXPANSION
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
2. INTRODUCTION
3. SMIC EXISTING SITE AND CONDITIONS
3.1 LOCATION
3.2 FACILITY
4. SMIC UPLANDS AND CURRENT USERS/PRIVATE BUSINESSES
4.1 UPLANDS
4.2 CURRENT TENANTS/BUSINESSES AND THEIR OPERATIONS
5. SMIC DEVELOPMENT PERSPECTIVES OF CURRENT USERS AND PROSPECTIVE TENANTS
5.1 SMIC'S SWOT ASSESSMENT
5. 1.1 STRENGTHS
5.1.2 WEAKNESSES
5.1.3 OPPORTUNITIES
5.1.4 THREATS
6. SMIC UPLANDS DEVELOPMENT POTENTIAL
6.1 DEVELOPMENT GOALS
6.2 UPLAND DEVELOPMENT AREAS
6.3 INITIAL DEVELOPMENT AREA AND POTENTIAL DEVELOPMENT OPTIONS
6.4 OTHER DEVELOPMENT OPTIONS CONSIDERED
7. POTENTIAL MARKET AND CAPACITY ASSESSEMENT
7.1 VESSEL M&R AND FABRICATION SERVICE MARKET OVERVIEW
7.2 SMIC CAPACITY AND PROJECTION OF POTENTIAL DEMAND/ACTIVITIES
7.3 MARINE M&R AND FABRICATION CENTER- A DEVELOPMENT OPTION
7.4 SMIC CURRENT AND POTENTIAL OPERATING REVENUE
36191
4
8
9
9
10
N
14
16
16
16
17
17
18
18
18
20
21
22
22
24
28
29
7.4.1 2014 OPERATING REVENUE
7.4.2 POTENTIAL OPERATING REVENUE
7.5 CAPITAL IMPROVEMENTS AND OPERATING EXPENSES
29
30
31
B. MANAGEMENT IMPLICATIONS AND POLICY CONSIDERATIONS 33
8.1 LEASING POLICIES 33
8.2 LAND USE AND ZONING CODE 34
8.3 FISCAL. AND MANAGEMENT POLICIES 35
8.4 PROMOTION AND MARKETING OF SMIC 35
9. CONCLUSION 36
9.1 IMPLEMENTATION OF RECOMMENDATIONS 38
10. REFERENCES
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39
a& SMIC
SEWARO MARINE INEX IS INIAL CENTER EXPANSION
FIGURES
Figure 1: SMIC Work Session Graphic Summary (Jan. 22, 2016)
Figure 2: Aerial View of SMIC and Resurrection Bay
Figure 3: Existing SMIC Maritime Facilities
Figure 4: SMIC Expansion -Phase 1: New Breakwater Structure
Figure 5: Current Users/Private Businesses at SMIC
Figure 6: SMIC Development Area
Figure 7: Number of TraveLift Movements to Haul -out and Launch Vessels
Figure 8: SMIC Conceptual M&R and Fabrication Build -Out
TABLES
Table 1: Interview Results
Table 2: Home Port Fleets at Alaska Harbors
Table 3: Land Utilization Based on the 330 -Ton TraveLift
Table 4: SMIC's 2014 Operating Revenue
Table 5: Initial Development Area Conceptual Build -out - Potential Operating Revenue
Table 6: SMIC Improvement Projects and Cost Estimates
EXHIBITS
Exhibit 1 — SMIC Strategic Work Session Summary, January 22, 2016
Exhibit 2 — SMIC Harbor Improvements Phase 1- Site Plan
Exhibit 3 — Figure A- SMIC Uplands Development Area
Exhibit 4 Figure B- Current Parcel Lease Status
Exhibit 5 — Conceptual M&R Buildout
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>� SMIC
SEWARD MARINE INDUSTRIAL CENTER EXPANSION
SMIC UPLANDS DEVELOPMENT
OVERVIEW OF POTENTIAL DEVELOPMENT OPTIONS
1:11. EXECUTIVE SUMMARY
Since the early 1980's, the City of Seward and State of Alaska have invested in the Seward Marine Industrial
Center (SMIC) and its supporting infrastructure with the mutual goal of establishing a marine industrial
services facility and spurring economic development. A number of private firms, governmental agencies, and
educational institutions have leased or purchased parcels at SMIC and have invested in a range of marine
vessel maintenance and repair (M&R), fabrication, logistics services facilities and operations, and maritime
vocational training programs. SMIC's location enjoys ice free, deep water navigation and provides connectivity
with the highway network serving the southcentral and the interior population centers of the state, as well as
access to the Alaska Railroad terminus in Seward and the
airport facilities in Seward and Anchorage. Full utilization of
SMIC's waterside and landside facilities has been hampered
by unsafe operating conditions for vessels in the marine basin
caused by the swell and wake action circumventing the
existing partial breakwater structure. Construction is now
underway on an extension of the breakwater structure that will
enhance the operational safety of the SMIC marine basin,
making the facility more attractive and useful to the fleet of
commercial and recreational vessels operating in Alaskan
waters. With the new breakwater scheduled to be completed
by April 2017, SMIC will be able to realize the economic
development benefits of the public and private sector
investments made to date in the facility and positioned to
attract a range of new development opportunities.
In early 2015, through a cost sharing agreement, the City of
Seward and the Alaska Industrial Development and Export
Authority's (AIDEA) Project Development and Asset
Management Team commissioned this study. The objective
of this study is to evaluate the development potential of
SMIC's upland area and marine facilities given the pending
completion of the new breakwater structure. Through a
El
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Recommendations
• Establish Advisory Committee
to oversee/guide SMIC
development
• Improve SMIC facility to meet
needs of current and future
users; encourage private
investment
• Promote and market SMIC's
facilities, strategic location in
Alaska
• Encourage partnerships with
UA, AVTEC and industry
partners to support workforce
development
• Consider zoning modifications
as SMIC develops to include
housing, retail and other uses
SMIC
SEWARo MARINEM LMut LENT6c EX7MMM.
review of previous studies and reports, and a series of interviews with current and potential users, as well as a
work session with maritime industry operators and commercial service providers, this study sought to identify
companies, organizations and individuals interested in expanding their operations at SMIC or in developing
new businesses or other activities at the facility. These reviews and interviews resulted in a number of viable
development opportunities being identified for SMIC, and a workshop convened with a broad range of SMIC
stakeholders --including industrial, financial, economic, real, estate and educational subject matter experts,
discussed additional long-term development opportunities for SMIC and the City of Seward. Although no
particular option emerged as the single best development opportunity for SMIC, a number of SMIC's existing
attributes, such as the existing vessel lift capabilities and available work and storage areas, suggest that SMIC
will be able to attract a greater number of vessels to the facility for the range of services provided. This
increased utilization of the SMIC maritime basin will in turn attract additional commercial and educational
investments in maritime related activities to the facility, spurring upland development. Accordingly,
development policies of the City should be flexible and seek to encourage public and private sector
investments that complement and build on the existing infrastructure and services provided.
Interviews with current tenants and prospective users did identify a number of near-term development
opportunities for the SMIC uplands area and explored a range of mid- to long-term development possibilities.
Neat -term development options mentioned by current tenants and users encouraged the continued
development of the Seward Shipyard and M&R operations, and supported an expansion of existing marine
education and vocational training facilities at SMIC. These developments would build directly on the existing
infrastructure, operations and training programs at SMIC and could potentially achieve a fuller utilization of
SMIC's work and storage areas and equipment capacities. This would help the City to meet its immediate
revenue goals for the facility while accommodating the needs and interests of the current tenants and
prospective users.
The stakeholder work session considered additional long-term development opportunities for SMIC, ranging
from an expansion of education and training facilities to introducing housing accommodations for students
conducting marine research or pursuing vocational training, or for workers engaged in commercial vessel
services. Together with the user interviews, the work session helped to emphasize several strengths, or
competitive advantages, of SMIC—such as proximity to population centers, existing vessel haul -out capacity,
available land for additional businesses and development, and access to educational programs and a trained
labor force. In addition, participants in the study confirmed a list of near-term capital improvements to address
some of the weaknesses attributed to SMIC, including inadequate public facilities and service amenities, a lack
of sheltered workspaces, and damaged docking structures. Figure 1 is a visual graphical representation
summarizing the work session's ideas and emphasizing the importance of collaboration. A larger version of
the graphic is found at the end of Exhibit 1, SMIC Strategic Work Session Summary.
k,
40191
v1 -rt rW... ... 46
Figure 1. SMIC Work Session Graphic Summary (7an. ?, 2016)
In recent years, the City TraveLift has operated at roughly 25% of its available capacity, and the work and
storage areas of SMIC could accommodate a greater number of vessels. The vessel lift capacity of the
SyncroLift (5,000 -ton) and the TraveLift (330 -ton) provide a particular value to vessels of 50' or greater
operating in the Alaskan fleet. Vessels of 50' or more in length comprise roughly 25% of the active fleet, and
recent regulatory changes will encourage operators to keep older vessels in operation. All of this suggests that
SMIC has an opportunity to attract a greater number of the larger vessels now operating in Alaska for the
range of M&R and fabrication services available at the facility.
Building on the public and private infrastructure and M&R operations in-place, the City can increase utilization
of the SMIC facility by attracting a greater number of the larger vessels. This increased activity would, in tum,
encourage a further expansion of the M&R, fabrication, and other marine related businesses, and, with an
enhanced usability of the North and East docks, demand for logistics services dockage would increase. Full
utilization of the existing SMIC capacities would also allow the City to achieve sustainable economic operation
of the SMIC facility and attract further development of the upland area, and set the foundation for an
expansion of the maritime research, education and vocational training activities at SMIC and in Seward.
To derive an estimate of the potential revenue a greater utilization of the vessel lift capacity and upland area
of SMIC would generate, a potential build -out of the parcels available for development focusing on M&R and
fabrication operations was prepared. This exercise shows that full utilization of the existing capacities at SMIC
would generate sufficient annual revenues to achieve sustainable economic activities and foster additional
economic development opportunities, such as an expansion of the maritime research, education, and
vocational training facilities. Revenues to SMIC and to the City could be further enhanced with the
introduction of retail commercial activities, such as hoteling accommodations, convenience shopping, and
food and restaurant services that generate tax receipts to the City.
6
�:■Yr im SMIC
SEMW RQUAM MLWMIAL GEWMP, E%MMON
Through the interviews and work session, a number of suggestions were put forward encouraging the City to
take a more pro -active role in shaping and advancing the development of SMIC. These suggestions included
the continued expansion of M&R and fabrication operations as well as maritime education and training
activities, and highlighted a number of operational practices and administrative policy options available to the
City. The implementation of these suggestions would represent a more active management of the facility by
the City, and work to attract a greater share of the growing demand for commercial vessel services to SMIC,
thereby promoting a fuller utilization of the existing infrastructure and facilities.
As expressed by current and potential users and the broader set of SMIC stakeholders, the following
recommendations are made for the City to consider in advancing the development of SMIC as a marine
industrial services and educational and research center, and in accommodating the interests of both the public
and private sector:
a City of Seward should consider establishing an active governance structure to include an Advisory
Committee representing businesses, industry ' experts, stakeholders and user groups charged with
overseeing and guiding the City's interest in the future development and promotion of SMIC
v Address current deficiencies and advance facility improvements at SMIC to meet the needs of current
tenants and users, and to encourage private sector investment and developments
a The City of Seward and broader community should collectively promote and market the advantages
of SMIC, emphasizing the advantages that the port facilities of Seward offer in terms of location and
connectivity to the state's urban centers, rail facilities, and cargo capacities of the Anchorage airport
o Encourage the development of partnerships between the University of Alaska, AVTEC, and industry
partners to create a workforce development/new product incubation facility at SMIC to provide
maritimc vocational training and education as well as research opportunities through the University,
• Consider zoning modifications permitting the inclusion of housing, convenience shopping and food
services at SMIC as the area becomes further developed.
This study found solid support among current and prospective users of
SMIC for the continuing improvement and development of the facility.
The existing infrastructure and available services, together with
completion of the new breakwater structure, represent value assets and
provide a stable foundation for the further development of SMIC. With
these assets in place, SMIC has the capacity to accommodate more users
of the Seward shipyard, vessel haul -out equipment, and dockage spaces
and upland areas. These favorable circumstances afford the City with a
number of possible options to efficiently manage the facility, promote a
greater utilization of the existing assets, and encourage the continued
development of the facility.
42191
The current breakwater
construction will enhance
SMIC basin operational
safety, and enhance use of
SMIC to commercial and
recreational vessels
traveling in Alaska's
waters.
7
lhl RODUCTION
A new breakwater structure for SMIC is scheduled to be completed by April 2017. This new structure will
improve the operational safety and efficiency of the SMIC marine basin, vessel dockage and moorage, and
haul -out services. Along with these waterside navigational and operational improvements, the City hopes to
encourage a greater use of the SMIC facilities and advance development of the upland area. This study
considers opportunities for additional upland development and the expansion of commercial, governmental
and educational activities at SMIC, and presents recommendations for the City to consider as a means to
improve the overall operating efficiency, revenue potential, and continuing development of the SMIC
facilities.
Over the past three decades, the City and state of Alaska have invested in SMIC infrastructure and facilities
with the goal of attracting marine industrial and commercial services, maritime -related job training and
research opportunities, and additional economic development opportunities. The new breakwater structure
will enhance the competitive advantages that SMIC offers to Alaskan mariners in terms of year round, ice -
free waterfront access; large dry-dock and haul -out capacities; available work area and storage space; and direct
connectivity to the state's transportation networks and urban population centers. As an example, SMIC
provides ready access to the world's busiest air cargo facility, the Anchorage International Airport.
To date, existing infrastructure and equipment improvements at SMIC have attracted a range of commercial,
educational and governmental users. These existing users have expressed a commitment to expanding their
operations at SMIC. In addition, it is anticipated that the safety and operational improvements associated with
the new breakwater will attract additional users and new developments to SMIC, along with an expansion of
existing operations, the development of additional maritime industrial services, and growth of educational
facilities and programs.
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43191
iWeir ifr SMIC 4
S AKS mw NE INULGTR14L cumRwAmsoN
IMIC EXISTING SI -- AN CONDIT 10-.'J S
3.1 LOCATION
SMIC is located on approximately 200 acres of land on the eastern side of Resurrection Bay in Seward,
Alaska. The Initial Development Area of SMIC, which is the focus of this study, consists of 82 acres. A
six -mile, two-lane roadway provides direct access from SMIC to the Seward airport, the Alaska Railroad,
Alaska's highway network, and the Anchorage International Airport. Seward is one of Alaska's two ice -
free, medium draft harbors with all-weather air, rail, and road access to Southcentral and Interior Alaska.
Figure ?: Aerial View of SMIC and Resurrection Bay
44191
3.2 FACILITY
The City began development of SMIC
in the early 1980's to serve as an
industrial center and shipyard for
commercial and recreational vessels.
As shown in Figure 3, SMIC facilities
currently include a partially enclosed
marine basin; docking structures; a
shipyard and marine vessel haul -out
equipment; vessel maintenance and
repair (M&R) services; and upland
areas for vessel repairs, storage space,
and material laydown, as well as land
area available for future development.
The facility operates year round, and is
unique in providing direct highway
and railway access to and from the
urban population center in Anchorage
and other communities along the
Alaska rail belt up to Fairbanks.
Figure 3: E"sting SWC Manhwe Facilities
depth in the SMIC b '" `
Water asin is r_.
maintained at -25' mean -lower -low- -r- ,,' if Y '" ' ` ¢►=-ter ~_ =. _
J•• �., .! r= ,���.�:w-�--===-=r� ',
water (MLLW) alongside the North
Dock, and at -21' draft in the maim
basin. SMIC can accommodate 's '4
- ..�w.v. err.! •""' 1 ; +:
medium draft vessels for cargo off- I r
loading, fueling and moorage
alongside the North Dock. The south' ', - r . ',. w' i,• s
face of this dock is 430' long, and the
west face is 114. The East Dock is 132'
long along the sheet pile bulkhead
facing west, and four steel/lumber urs:
dolphins provide mooring space north
•;
of the bulkhead along the unfinished
length of the East Dock to the North
Dock. The City -owned TraveLift Fagure 4: SMI'C Expansion -Phase I: New Breakwater Structure
facility, located immediately south of the East Dock, has two 119' long, 8' wide concrete piers set 32' apart to
accommodate operations of the new 330 -ton TraveLift, which is capable of lifting most vessels up to 167'
10
45191
.. fr..-_"
P��'�_•� . !.+ -�h; , ; _ r
.ray
�
•
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�!
}�yr� .rte ^.�.-•. d�
}' fold > '�„d,._ •' �„-
.,r`'
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depth in the SMIC b '" `
Water asin is r_.
maintained at -25' mean -lower -low- -r- ,,' if Y '" ' ` ¢►=-ter ~_ =. _
J•• �., .! r= ,���.�:w-�--===-=r� ',
water (MLLW) alongside the North
Dock, and at -21' draft in the maim
basin. SMIC can accommodate 's '4
- ..�w.v. err.! •""' 1 ; +:
medium draft vessels for cargo off- I r
loading, fueling and moorage
alongside the North Dock. The south' ', - r . ',. w' i,• s
face of this dock is 430' long, and the
west face is 114. The East Dock is 132'
long along the sheet pile bulkhead
facing west, and four steel/lumber urs:
dolphins provide mooring space north
•;
of the bulkhead along the unfinished
length of the East Dock to the North
Dock. The City -owned TraveLift Fagure 4: SMI'C Expansion -Phase I: New Breakwater Structure
facility, located immediately south of the East Dock, has two 119' long, 8' wide concrete piers set 32' apart to
accommodate operations of the new 330 -ton TraveLift, which is capable of lifting most vessels up to 167'
10
45191
*EW SMIC
SMARO MARWE INCLL TRlgt, CUfM 9XMMOI4
long (as per Travelift vendor specifications) and transporting vessels to the uplands area for maintenance,
repairs or storage. Vigor Industrial currently manages the Seward Dry Dock facility under a long-term
management contract with the City, and operates the 5000 -ton Synchrolift located on the south end of the
basin, which can haul out vessels up to 350' in length and 80' of beam. The existing breakwater is constructed
of self -standing sheet pile cofferdam cells and smaller connecting cells, and extends 750' to the west of the
shoreline before turning north for a length of 275'. In 2014, the City successfully secured additional funding
to improve the navigational infrastructure at SMIC and is constructing a new 1,009' rubble mound breakwater.
The new rubble mound breakwater structure will extend the northerly end of the existing breakwater structure,
as shown in Figure 4. In addition to the construction of a new breakwater, the City has invested in providing
power (electricity), communications, potable water and sewer/storm drainage services to the leased parcels at
SMIC.
Construction of the rubble mound breakwater at SMIC commenced in 2015 and is scheduled for completion
by April 2017. Completion of the breakwater will provide the SMIC basin with improved protection from
swell and wake action, thereby improving the functionality and capacity of the SMIC harbor for maritime
operations.
I( UPL.Af JDS- AND CL RREh1T USERS/PENNATE BIISINESSES
4.1 UPLANDS
The upland parcels at SMIC are zoned for Industrial use under the City's Zoning Code. In addition to the
Industrial uses identified in the code, the City provides recreational parking (seasonal), and public access
to campground areas established along Spring Creek, Fourth o£July Creek and Resurrection Bay.
Along with the marine structures, haul -out equipment, and transportation infrastructure noted above, the
City has developed the following structures and services in the upland area:
Harbor Master office and a storage building for spare parts and equipment;
• Vessel wash -down pad & wastewater collection facility;
• A storm water collection system within the sbipyard complex operated by Vigor;
• Master Electrical Substation,
• A sewer system serving SMIC and the surrounding area with sufficient capacity to accommodate
anticipated growth;
• Electricity, potable water and sewer systems up to boundary of the developed areas;
• High mast and area lighting; and
Internal roadway and traffic circulation, with the road segments south of Jellison Avenue as service roads,
not open to the public.
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4.2 CURRENT TENANTS/BUSINESSES AND THEIR OPERATIONS
As shown in Figure 4 (excluding the 65.6 -acre parcel now owned by the State of Alaska Department of
Corrections), the central upland area of SMIC comprises 32 parcels of various sizes covering
approximately 92.2 acres, of which 56.6 acres are either leased or in use, including 1.2 acres which are
privately owned—leaving 35.6 acres available for lease and development. Currently, the City Boat Yard
occupies 11.85 acres and other common use areas occupy about 11.68 acres, including internal roads and
the wash -down area. M&R service operations, supply and logistics service providers, educational
institutions and other governmental agencies occupy about 45 acres, with 34 acres currently generating
revenue for SMIC of roughly $156,000 in land rents and leases, and $107,500 in storage fees, in 2014.
About eleven (11) acres are not currently generating annual revenue payments, including parcels used by
AVTEC (7.58 ac.), the U.S. Coast Guard (USGC, 0.03ac.), and 1.94 acres housing the main power
substation north of the Jellison Avenue,
Figure S: Current Users/Private Businesses at SMIC
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Mor SMIC
Wwmm MARINE MLETWAL CE WM EMPAMON
SMIC's current tenants and users are listed below, and the parcels they either lease or own are identified
in Figure 5.
• Vigor Industrial — operates the Seward dry dock and shipyard at SMIC, and is a leader in
shipbuilding, ship repair, refit, fabrication and other industrial services in Alaska and the Pacific
Northwest. (hW:[Lvigor.net/facilities Z=ward i
• Alaska Vocational Technical Center (AVTEC) — provides technical and vocational skill
training in a wide variety of industrial and technological fields. AVIEC's Maritime Training Center's
mission is to provide Alaskans with skills and technical knowledge to enable them to be productive in
the continually evolving maritime industry. In Seward, AVTEC has a Full Mission Bridge Maritime
Simulator that provides realistic vessel operations training. This is the only bridge simulator in AK and
one of only a few facilities of this type in the U.S. (htt2s: / /avtec.edu/department/alaska-marihMe-
trainin -center;
o Raibow Fiberglass & Boat Repair — provides winter storage, vessel shrink wrap, structural and
cosmetic repairs for boats and marine vessels, as well as marine material supplies and parts for
M&R/fabrication services at SMIC. aksbdc. r client- rofiles raibow-fiber 1 s -boat-
re air-llc
• Alaska Logistics LLC (AKL) — provides barge transportation of materials and equipment from
Seattle to Western Alaska, with transportation and logistics services handled at the ARRC dock facility.
At their SMIC facility, AKL performs M&R services on their vessels and equipment and stores
materials and equipment.=:/Lwww.alaska=lggistics.com/`portSLwaxd.html
• Polar Equipment Inc. — processes fresh/frozen packaged fish, seafood, shellfish, aquatic
invertebrates, and aquatic plants. Polar's processing plant is on the East Dock-
*
ock• GCI Communications Corp Tower — GCI is a statewide telecommunications service provider.
The GCI facility houses communication equipment to transmit signals in the immediate vicinity.
• Global Tower Assets, LLC — local telecommunications service provider. Their SMIC parcel
houses a communication tower.
• USCG — maintains a small communication tower near the dry-dock.
• Harmon Properties, LLC — Real estate development company provides building & storage
units of various sizes used for enclosed -space boat -work and as storage units.
• Communication North - Supply and repair store for boat electrical and communication
equipment and materials, located on a company owned OS -acre parcel.
• Petro 49 & Shoreside Petroleum Inc. — Fuel and lubricant supplier and distributor. At
SMIC, Shoreside Petroleum has a 15,000 -barrel capacity tank storage on a company-owned
0.7 -acre parcel.(htt2://www.shoresidel2etroleum.com/)
Tenants typically hold 5 -pear leases with the City, with options to extend, and two tenants have recently
signed 99 -year leases.
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To assess the extent to which improved uaatitime operational safety and functionality in the marine basin
would encourage current upland businesses to expand their operations and help attract new users and
businesses to SMIC, a series of one-on-one interviews were conducted with current users and representatives
of a select set of maritime related industries and commercial service providers likely to be interested in using
the SMIC basin, docking facilities and upland area. Interviews were also conducted with a number of
companies and organizations with fleet operations in Alaskan waters and that require periodic and
seasonal haul-out for inspections, M&R services, and storage space.
'Existing i+iearmerm _ Mid-tern, , term- i Asa Back-up
ilserslBwinnap �_ Interest Interest intarest_---_-�� Facility
I i>ce,.ex Mme tw.od. Pl.rine r upimdC ! iM.rins uq. & N ineUpian"
I FurleAiaska
2 ;Dutch Shell
3 : Edison Chouest Offshore
4 Fairweather LLCM--
• . •_ _..__ ...
5 SaltchuldFO551TCMAndersonTyg
& Barge
6 £ Crawler Marine Services F x x
7 Petro 4915hoieside Petroleum tt
8 ` Alaska Raboad corporation -Seward I
9 Alaska Marine LinesiLyndenTransport -- —
10 : Alaska Logistics LLC - - _ x X x x
1 I University of Alaska Fairbanks - R1V x x I x
Sikuhaq
12 Fairweather Science LLC
y i
13 Alaska Institute of1echnaka - x x x 4
AVTEc I
14 Vigor Industrial -Seward Shipyard x x
i 15 F Motive Power Marine Inc. .-- _ x
Table 9: Interziesv Results
The companies and organizations interviewed represented a range of potential users likely to be interested in
the mix of M&R, marine vocational training, and logistic support services available at SMIC, along with the
transportation and logistics connections available in Seward. Interviews were designed to gauge the interest
of these entities in either expanding existing or introducing new types of operations and services at
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SEWAx MARINE iaous7FNL CENTER UffiN OM
SMIC, as well as to gain a direct assessment of SMIC's relative competitiveness and any required
improvements. Table 1 provides a summary of the companies and organizations interviewed along with an
initial indication of each organization's interest in using SMIC in the near-, mid-, and long-term.
This series of independent interviews indicated that, overall, there is broad support among current and
prospective businesses and organizations for further development of the SMIC facilities. Those with vessel
fleet operations appreciate the value of Vigor operating the shipyard and believe there will be opportunities
for their companies to make more use of SMIC with the completion of the breakwater and implementation
of additional services and facilities that improve the operating efficiency, safety and economic growth of
SMIC.
The M&R and vessel fabrication entities participating in the interviews indicated a strong and immediate
interest in expanding their operations at SMIC. Maritime shipping and logistics entities, along with educational
and research institutions, and the USCG, showed continuing or longer term interests. Participants in the
interviews saw the established maritime service industry in Seward—together with the vessel lift capacity and
shipyard facility, M&R services, and available upland area at SMIC—as constituting the competitive
advantages Seward has over other regional harbors. There are presently two common user haul-out/M&R
operations at SMIC—the Vigor Shipyard and the City Boat Yard. Vigor provides M&R services for larger
vessels and operators (using the Syncrolift), whereas the City Boat Yard focuses on vessels of sizes that can
be handled by the City TraveLift. With these established local businesses, participants generally envisioned a
development approach for SMIC focusing on an expansion of marine M&R services, and vessel fabrication
and modification. Consequently, the notion of prioritizing maritime shipping and logistics at SMIC was
relatively less favored, especially by those participants with well-established operations using the intermodal
rail access available at the Alaska Railroad (ARRC) dock facilities. Nevertheless, these maritime and logistics
providers did recognize a good potential for the SMIC facility to support their business over the long-term
and on a contingent basis, and encouraged the City and ARRC to coordinate developments between their
respective facilities so as to provide a full range of complementary maritime services in Seward. Such a
coordinated development approach was also viewed as favorable by the Oil & Gas companies interviewed, as
they perceive some potential uses of SMIC for tender vessels, oil rigs and equipment laydown as eventually
determined by Oil & Gas industrial demand.
These expressions of interest and intended investments provide a set of likely expansion opportunities to
existing services and the addition of new operations at SMIC, as well as a basis for prioritizing capital
improvements and operating practices so as to encourage and sustain the competitiveness of the facility and
to best utilize and leverage the City's in-place assets. The capital improvements identified by the interview
participants and provided by the City are detailed in section 7.5.
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5.1 SMIC'S SWOT ASSESMENT
The interviews and work session held with SMIC stakeholders helped to highlight certain competitive
strengths SMIC offers to the majority of the Alaskan fleet, particularly for the vessels classified from 50'
to 200'+ in length. For vessels of this size in the Alaskan fleet, the haul -out capabilities of the TraveLift
and SyncroLift, together with the available workspace and upland storage area, represent a unique value
proposition. From the interviews and previous documents, the following strengths, weaknesses,
opportunities and threats (SWOT) of SMIC, as an ongoing operation, where identified.
5.1.1 Strengths
• Geographic location affords mariners with a year-round ice -free harbor
■ New breakwater structure will provide for safer maritime operations and mooring
• Immediate landside access to Alaska's state highway network and the ARRC railhead
• Proximity to regional population centers providing access to a broad range of economic activities
and resources, including the fourth busiest cargo airport in the world and University of Alaska
campuses
• Central location for the Alaskan fleet, near the Gulf of Alaska
• Available land for lease and development
■ Proximity to trade routes
• Provides haul -out capacities with the 330T TraveLift and 5000T SyncroLift--advantageous for
50' to 200'+ vessels
• Boatyard and storage area capacities allow owners to perform work on their vessels
■ Available shipyard and dry-dock capacities
a Available Marine Industrial Support (MIS) services are comparable with the range of MIS services
in Homer or Kodiak
• Alaska's Institute of Technology (AVTEq provides M&R vocational training at SMIC
• The Seward Marine Center; Alaska SeaTJ Center; and University of Alaska's Alaska Region
Research Vessel (ARRV/Sikuliaq) provide Arctic research capabilities out of Seward
5.1.2 Weaknesses
Electric power, water and sewer utilities partially extended through upland area
• Public restroom facilities inadequate
• Inadequate moorage and dockage space
• Existing dockage damaged, fendering system broken
• Working dock area limited
• No on-site pump -out station
• Upland experiences poor drainage, spot flooding and icing
• Sheltered/enclosed work area not available in City Boat Yard
• Basin working area limited
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SEWARo MARINE INDUML CUfMFL EXPAMON
• Administrative (paperwork) and insurance provisions can be onerous for users
• Work area not secured (no fencing or security camera CCPV)
• Derelict vessels in boat yard
• Shortage of housing and high cost of living in Seward
• Lack of winter activities in Seward
5.1.3 Opportunities
• Land available for a range of developments, including residential and educational uses
• Existing businesses interested in expanding operations
• Aging commercial fleet will require more M&R and modification work
• Shipyard subcontracts with local M&R businesses
• Collaboration with shipyard to provide an on-site training facility for AV EC vocational training
programs
• Prospective users interested in using SMIC: Crowley, Furie, Inlet Fish
• USCG replacing patrol vessels with Sentinel class cutter, M&R now performed at USCG facility
in Ketchikan, but new fleet requires larger scale facilities
• Increase use of docking and moorage likely with completion of breakwater structure
Use of North Dock cargo loading likely to increase with completion of breakwater structure;
though this requires repair/replacement of damaged fenders.
• Coordinated operations/services with ARRC docks and operations to attract large-scale
commercial operations
• Collaboration with University of Alaska to expand education and research facilities at SMIC
• Develop housing for worker and students
• Adjust upland lease terms/rates
+ Increased financial performance with increased land value as development continues
• Adjust fiscal policies
• Zoning Code update
5.1.4 Threats
Administrative overhead placed on potential users
• Maritime regulations limiting investments in expanded Alaska commercial fleet
® Workforce availability and technical training level/capabilities
¢ Weak economic conditions in the state
• Low price of crude oil
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Wli UPIANDS OEilELOPMFNT RECOMMENOATIdN
6.1 DEVELOPMENT GOALS
The City has made significant investments in SMIC as a marine industrial center over the last three
decades. As of pet, however, the full economic development potential of the SMIC facility has not been
realized, owing in large part to the inadequate protection provided to the marine basin with the partial
breakwater structure. The partial breakwater leaves the basin and dock system exposed to swell and ware
action, causing hazardous vessel operating and docking conditions to the extent that damage has occurred
to vessels and the docking systems. This, in turn, has discouraged vessels from using the facility, resulting
in less revenue for SMIC and requiring greater repair and maintenance costs, thereby negatively impacting
the financial performance of SMIC.
Achieving economically sustainable operations and advancing the development of SMIC are primary goals
of the City and State. Building on and leveraging the infrastructure and equipment investments in place
presents the most immediate path forward to increasing the use of SMIC and to realizing the City's
development goals. In addition to the revenues generated for SMIC through the provision of leases and
various services --such as the TraveLift, storage, fuel and power sales, and dockage and wharfage --the
further development of commercial and educational activities at SMIC will generate greater property and
sales tax revenues for the City as land values increase and demand grows for hotel accommodations,
restaurant services and retail sales.
6.2 UPLAND DEVELOPMENT AREAS
As shown in Figure 6, the SMIC upland parcels have been platted and are available for lease and
development_ When leased, the practice has been for the tenant to clear and grub the parcel, grade and
prepare the site in conformance with City Code, and connect to the utilities that the City extends to the
parcel boundary.
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Figure 6: SMIC Development Area
The SMIC Initial Development Area, as defined by the dotted red line shown in Figure 6, includes the
parcels west of Delphin Street and south of Jellison Avenue, as well as the area north of the North Dock
towards the GCI leasehold and public access pathway to the beach. Outside of the Initial Development
Area, possible future development areas include the City -owned parcels to the north of Jellison Avenue,
where the power substation and AV MC facility are located. ne City has transferred a portion of the
65.66 acre parcel immediately east of Delphin Street to the State (through a 1984 agreement with the City)
for a planned expansion of the correction facility. The City retained ownership of the sewer lagoon and
associated infrastructure as well as approximately 15 acres of the site that will be available for future
development. In addition, the City reports that the privately owned parcels to the north of SMIC (of about
170 acres) may potentially be available for purchase or joint development with the City as part of future
SMIC developments.
The tuning of these potential future development areas being available or required for SMIC development
is currently uncertain. As such, to meet the immediate and near-term development needs of SMIC, this
study limits discussion to the Initial Development Area of roughly 82 acres.
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6.3 INITIAL DEVELOPMENT AREA AND POTENTIAL DEVELOPMENT OPTIONS
For the Initial Development Area, with essential infrastructure and services in place and a majority of
parcels either tenanted or housing City operations, one potential near-term development option, or an
"organic growth" approach, was considered. This potential option encourages the continued development
of M&R services and business capabilities at SMIC, and works to meet the City's immediate development
goals of achieving sustainable revenues while being consistent with the expansion and investment plans
expressed by current and potential users. As it sits, with its vessel lifting capacity and available work and
storage areas, SMIC is in a position to attract a greater number of 50' and larger vessels currently active in
Alaskan waters and requiring M&R services or storage. The continued growth of M&R activities at SMIC
is generally anticipated, and the City could consider a number of administrative and fiscal policy options
to hasten or accelerate this growth trend. These proactive options would include a possible third -party
operator of the City Boat Yard as a way to provide for a more focused and efficient management of the
facility, and a coordinated public/private marketing and promotion effort to attract more vessels to SMIC.
Near -tern administrative and fiscal policy options that encourage and support the expansion of M&R
services at SMIC, and that align with the competitive strengths identified for the facility, would help to
build business for the existing M&R operators, leverage in-place investments in the TraveLift and
SyncroLift haul -out capacities, and increase use of the SMIC upland work and storage areas. These options
also help to realize a number of other potential opportunities identified for the facility by accommodating
new users and sustaining the M&R service capabilities available to both Vigor and vessel owners,
supporting AVTEC training options with operators, and expanding educational and housing opportunities
for students and workers. Additionally, these options preserve capital investment decisions and allow a
"build -to -market" pace of capital improvements while keeping other managerial and fiscal policy options
available for consideration, such as administration of SMIC as a special tax district and cooperatively
promoting SMIC with the business community. Most of the identified weaknesses relate to near-term
capital improvement needs, such as the need to extend utilities and improve public facilities and service
amenities. These options allow capital needs to be addressed incrementally along with new private
investments and additional upland leases.
A more focused and proactive management policy would complement or build on organic growth, and
possibly involve some additional capital expenditures by the City. These proactive capital expenditures
could increase the width capacity of the TraveLift, thereby increasing the number of larger vessels capable
of using the TraveUft, and accomplish some pre -development activities for the available parcels, including
completion of a drainage system, extension of utilities and the provision of sheltered or covered work
yard spaces. A gravel landing ramp to accommodate large vessels and barges would also be beneficial.
Bringing in a third -party operator for the City Boat Yard could accomplish many of these improvements
and would provide for a proactive and dedicated management of the facility. 'Mese proactive options can
be seen as an extension of the Organic Growth approach: as the businesses and activities grow
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SEWAM MMMC imDL MiAL CENTER EXFANVON
spontaneously, the attractiveness of operating the City Boat Yard by a third party operator becomes more
viable.
Factors favoring the potential development option for expanding M&R operations at SMIC include:
* SMIC represents an attractive option to vessels of 50' to 200'+, is relatively close to productive
fishing grounds, and has adequate existing capacity to significantly expand its use. In 2014, only
7% of the vessels serviced at SMIC were of 100' and longer, indicating that SMIC has the capacity
to attract more of the larger vessels operating in the Alaskan fleet.
* Vigor incorporates the use of local subcontractors in performing work in their shipyards, and this
available sub -contracting work helps to attract and support smaller scale M&R businesses and
suppliers. With sufficient demand for these local M&R businesses,. additional M&R related
operators would likely seek long-term arrangements in SMIC.
The AVTEC vocational training operations at SMIC are close to the marine M&R and vessel
fabrication operators, which represents a mutually beneficial arrangement. AVTEC benefits by
being situated near the marine industrial vocational and on-the-job training opportunities for their
students that are available with the M&R operators; and the operators, like Vigor, benefit with the
development of a qualified labor force specifically trained to meet their needs.
® The petroleum supply and M&R operators participating in the interviews suggested that they
would work to attract fishing fleet owner -operators as customers, and that it would help their
businesses if fishing fleet operators, like Coastal Villages, could be attracted to SMIC for fuel and
other vessel inspection and M&R services.
In addition, there are a significant number of vessel operators that prefer to self -perform M&R work on
their vessels. Accordingly, vessels able to use the City TraveLift could be attracted to SMIC.
6.4 OTHER DEVELOPMENT OPTIONS CONSIDERED
Interviews with current and potential users included major oil and gas industry participants, namely Shell,
Furie Alaska and Edison Chouest. These discussions considered an alternative development approach
that would see the SMIC facility being developed to serve a primary industry, such as O&G or a
commercial fishing fleet. In this instance, the O&G participants did see some uses or services that could
be provided by SMIC, given the various vessels and pieces of equipment used in their operations. For
example, Furie moored their Spartan 151 rig at SMIC for the 2015 winter season. Dockage remains a key
potential opportunity for the SMIC basin, and with the new class of cutter being deployed by the USCG,
dockage potential and existing lift capacity at SMIC could position SMIC as a viable option for servicing
these new vessels.
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A work session was conducted in January 2016 with a broad range of SMIC stakeholders --including
industrial, financial, economic, real estate and educational subject experts --to identify possible long-term
development opportunities for SMIC. This work session generated lively and thorough discussions
between the City and SMIC users and community members, and the content and course of these
discussions were graphically recorded (Exhibit 1). A number of improvements to the SMIC facility
suggested by the stakeholders are included below along with other improvements that were recommended
in previous studies. Several operational and administrative suggestions are included in the closing section
of this study.
Representatives of UAA and maritime subject matter experts participating in the work session encouraged
the expansion of maritime research, education and vocational training facilities at SMIC and in Seward.
Increasing these activities and providing housing and retail services at SMIC would build demand for
restaurants and other commercial enterprises in Seward, generating greater sales tax revenues for the City
and eventually bolstering property values and taxes.
POTE TIAL MARKET AN D CAPACITY ASSESSMENT
From interviews with current and potential users, and as expressed by stakeholders during the work session,
development options emphasizing the continued growth and expansion of M&R services provided at SMIC
emerged as a potential development approach for the near- to mid-term. This emphasis on expanding existing
M&R operations and attracting additional M&R and fabrication investments at SMIC builds on and leverages
the City's previous investments in infrastructure and utilities at SMIC, including the new breakwater, and is
supported by current and potential users of SMIC.
More importantly, this M&R focused approach works to position SMIC and the City, to capture a larger share
of the growing market for M&R services in Alaska; increases utilization of existing capital assets and overall
revenues generated by the facility; and provides a'framework for the collaborative development and
promotion of SMIC. As reviewed and presented in the following sections, a number of factors indicate that
demand for M&R services by the Alaskan fleet will be increasing, and that the existing haul -out capabilities
and available workspace and storage areas at SMIC have the capacity to capture a larger share of this market:.
To evaluate the viability of continuing the development of the uplands with the expansion of M&R and related
services at SMIC, a potential build -out of the Initial Development Area with M&R operations was prepared.
This potential M&R build -out demonstrates that, given a full utilization of existing capacities, SMIC has the
potential to generate additional annual revenues.
22
7.1 VESSEL M&R AND FABRICATION SERVICES MARKET OVERVIEW
Vessel M&R is an integral part of the shipping and shipbuilding industry. Ship repair facilities provide a
broad range of services, including ship conversions, retrofits and renovations, routine maintenance, major
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damage repairs, and minor equipment replacements. In a recent Maritime Industrial Support (MIS) report,
McDowell (2014) highlights that most of the vessels operating in Alaskan waters were built between 1970
and 1989, and 1,300 vessels were built before 1970, including all of the approximately 400 vessels
exceeding 60' in length. McDowell's database identifies 8,970 vessels (including 1,310 vessels operating in
Alaska but home -ported in other West Coast states) as comprising the Alaskan fleet. Out of the total fleet,
24% (2, 090 vessels) are 50' or greater in length.
Overall McDowell estimated the Alaskan fleet spends approximately $100 million annually for M&R
services. Given the progressive nature of M&R expenditures in relation to the size of a vessel, it is
reasonable to suggest that vessels of 50' or more account for the majority, say 50%, of M&R expenditures,
white representing a quarter of the total fleet. With its annual vessel handling capacity of approximately
350 vessels, SMIC could potentially accommodate 16% of the 50' plus vessels in the fleet, which would
equate to a market potential of over $8 million per year in M&R services.
With the aging fleet, demand for M&R services will increase as operators seek to both improve the
performance and extend the useful life of their vessels. This will be especially so for the operators of
vessels longer than 49' --given that the Coast Guard Authorization Act of 2010 requires new vessels over
49' in length to be surveyed and classified under the regulations, and vessels exceeding 79' to be assigned
a load line. The effect of these regulations will be to increase both the acquisition cost of new vessels and
the operating costs of nearly all commercial fishing vessels, thereby incentivizing the continued use of
older vessels.
In general, conversion and repair work is more profitable for shipyard operators than new construction
work, as reported by the International Labor Organization (ilo.org). Repair contracts, overhaul and
conversion works also help to stabilize the workforce during times of limited new construction, and,
conversely, new construction augments the repair labor workload. At SMIC, the fabrication and repair
services provided by Vigor frequently draw on the M&R capabilities of the other business operating at
SMIC, and the lifting capacity and available work area of the City Boat Yard works to complement the
scale of services offered by Vigor. Accordingly, SMIC represents a particular value to the larger
commercial vessels of the Alaskan fleet, providing ample lifting capacities and a range of M&R services.
Commercial fishing boats, rigs and fleet tender ships, and transportation/ distribution vessels require
frequent inspection and M&R work, and eventually complete overhauls, to maintain efficient and safe
operations. Examples of M&R services requited include:
+ Blasting and repainting the vessel's hull, freeboard, superstructure, interior tanks and work areas
• Major machinery rebuilds and installation (e.g., diesel engines, turbines, generators and pump
stations)
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o System overhauls, maintenance and installation (e.g., flushing, testing and installation of piping
systems)
• New system installation, either adding new equipment or replacing systems that are outdated (e.g.
engine, navigational systems, combat systems, communication systems or updated piping systems)
• Propeller and rudder repairs, modification and alignment
® Creation of new machinery spaces on the vessel (e.g. cut-out of existing steel structure and adding
new walls, stiffeners, vertical supports and webbing).
In many cases, repair services are required due to emergency situations with little warning, occasionally
making vessel repair work a fast moving and unpredictable working environment. For normal repair work,
vessels will typically stand in the shipyard anywhere from 3 days to 2 months, and major repair or
conversion work will often take b months to a year or more.
7.2 SMIC CAPACITY AND PROJECTION OF POTENTIAL DEMAND/ACTIVITIES
At SMIC, the larger vessels in the Alaskan fleet have the option of using Vigor for major repair works or
performing work themselves in the City Boat Yard, and they can use the storage area at SMIC for laying -
up through the off-season, typically from October through March each year.
TraveLift Uses 2014 & 2015
35
30
25
0 20
b
A. 15 --_-
10 "
z �-
o
Jan Feb Mar Apr May June JuIy Aug Sep Oct Nov Dec
2014 1 2015
Figure 7. Number of TraveIsft Movements to Haul -oat and Launeb Vessels
Recent data on the use of the City TraveLift shows a total of 143 one-way lifts in 2014, and 153 lifts in
2015. Figure 7 presents TraveLift data for recent years on a monthly basis, and demonstrates peaking at
the start of the operating season in May and again in September/ October when vessels are arriving at the
end of the season for M&R or storage services at SMIC. The information also shows 2015 lift activity
increased by 6% over the number lifts in 2014.
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The weal number of rccindcd life, was, ge-aEmud F)• -rou hiv 100 v��sr�s, mrigirig iron tip.+' ro E`16' in
length, with a majority of these vessels making repeated visits in 2014 and 2015. Most of the vessels using
the TraveLift (69%) were from 60' to 99', and 24% were less than 60'. The remaining 7% of serviced
vessels were 100' or greater. These lift figures are. only for the City Travel ift and include vessels visiting
SMIC for M&R services or long-term storage, and thereby generating revenues for SMIC. Vessels using
the SyncrolLift, operated by Vigor under lease agreements with the City, are not included. The City does
not receive lift fees for vessels using the SyncroLift; however, the City does receive annual lease payments
from Vigor,
Source Based on the McDowell Group Database (* harbor with dry-dock facility)
Table 2: Home Port Fleets at Alaska Harbors
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As indicated in Table 2, twenty-five (25) vessels between 60' to 99' are currently home -ported in Seward.
Travel ift records show that sixty-eight (68) vessels in this size have recently used SMIC, indicating that
SMIC, with its current lifting capacity and available work area, does attract the larger vessels (60'+) of the
fleet operating in Alaskan waters.
Previous reports (PND, 2009 TIGER Grant) identified that SMIC, due to unsafe wave conditions in the
basin, has had to turn away as many as 30 to 60 vessels requiring repairs. These vessels were from Unalaska,
Kodiak, or Seward, and ranged from 100' to 300' in length. It is recorded that at least half these vessels
had to travel instead to the Puget Sound area for repair work. The travel costs (2005) associated with these
vessels range from a low of $168,400 for 15 vessels to a high of $505,300 for 30 vessels, according to a
U.S. Army Corps of Engineers Continuing Authorities Project Fact Sheet, May 12, 2005
(www.dtyofseward.net/smic). With the completion of the breakwater and for the range of M&R services
available, many of these vessels would again travel to Seward, rather than Puget Sound, thus reducing
vessel operating costs and potentially increasing vessel productivity with more time spent on commercial
activities than on repositioning of the vessel.
SMIC has sufficient existing lift capacity and uplands area to attract a greater number of vessels, especially
larger vessels of 50' to 200'+. For example, the City TraveUft is operated from 8:OOAM to 5:OOPM, 7 days
a week during the summer (April to September), and it maintains similar hours through the winter
(October to May) but closes on Sundays. Given this operating schedule, and accounting for the average
3 -hour service time requited for the different operations performed by the TraveLift to accomplish haul -
outs, block set-up and wash down movements --and using an availability factor of 70% to allow for
maintenance and downtime—the City TraveLift has the capacity to handle roughly 580 vessel lifts a year.
Accordingly, the utilization rate of the TraveLift was roughly 25% in 2014.
As noted earlier, SMIC represents an attractive option to vessels of 50' to 200'+, is proximate to Alaska
fishing grounds, and has adequate existing capacity to significantly expand use. Only 7% of vessels serviced
at SMIC in 2014 were of 100' and longer, suggesting that SMIC has the ability to gain market share within
the existing fleet of larger vessels.
The availability of the upland area to accommodate M&R and storage activities similarly demonstrates
that SMIC has the capacity to attract more vessels. For parcels representing the 82 acres of the upland
Initial Development Area, 46.4 acres are currently leased or owned, and 35.6 acres are available for lease.
Under current operating practices at SMIC, the Travel ift is used to haul -out and launch vessels, to
position and block vessels, and to straddle carry vessels to and from the water and work or storage spaces.
To gauge the capacity of SMIC's available upland area, in terms of the number of vessels that could be
accommodated per year for M&_R and storage services, an industry benchmark was applied for the number
of workspaces provided per acre for the different vessel sizes, with adjustments made to the working area
required to accommodate operating space requirements for the 330 ton Travel ift with its 47' wide exterior
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dimension. The TraveUft wheels are on casters, which can be rotated to allow the TraveLift to maneuver
sideways. Accordingly, the limiting dimension on maneuverability of the TraveLift, when carrying vessels,
is the length of the vessel. A buffer of ten percent (10%) was added to vessel lengths to account for
additional gear that frequently extends past the bow or transom of vessels, as well as for safe operations.
With these assumptions and adjustments, the estimated land utilization by vessel size is shown in Table 3.
50
18.0
47.0
14.5 .
2.1
3,413
12
60
20.0
470
13.5
2.1
4,221
10
70
22.0
47.0
12.5
2.1
5,072
8
80
24.0
47.0
11.5
2.1
5,964
7
90
25.0
47.0
11.0
2.1
6,804
6
100
26.0
470
10.5
2.1
7,665
5
150
30.0
47.0
12.0
2.1
13,230
3
2D0
33.5 1
47.0
12.0
21
19,110
2
Table 3: Lund Utiktatlon Bared on the 330 -Ton TramL.aft
Recent TraveLift records demonstrate an average annual turnover ratio of 3.5 can be established for
utilization of the working area and storage space, which equates to an average of 48 vessels per acre per
year for 50' vessels; 31 for 60' to 90' vessels; and 13 for 100'+ vessels. The actual number of vessels SMIC
could accommodate each year would depend on the mix of vessel sizes. For example, apportioning the
work and storage area available to vessels ranging in size from 50' to 200', as shown in the conceptual
build out and discussed later in this report, the initial development upland area at SMIC, including the
City Boat Yard, has a sustainable capacity to accommodate roughly 330 to 350 vessels per year, at 80%
utilization and depending on vessel sizes. It should be noted that this capacity estimate is predicated on
an apportionment of the available area between M&R working areas and storage space, and the
apportionment between these uses could vary. Moreover, these calculations factor in sufficient operating
space for the TraveLift to accomplish vessel positioning and blocking functions throughout the SMIC
area: static density capacity could be increased significantly if a smaller lift or trailers were used to position,
block and transport smaller, 50' to 70', vessels to and from work and storage spaces.
In addition to available haul -out and work space and storage capacities, SMIC has demonstrated its
potential to attract vessels for moorage and wharfage services. With repairs to the North Dock and
extension of the East Dock, it is likely that the previous level of usage far moorage and dockage would
be achieved. The East Dock extension could be accomplished by replacing and repositioning the existing
dolphins to accommodate the docking of larger vessels of 100'+ and thereby allowing M&R services to
be provided on docked vessels. The revenues generated by these activities would further contribute to the
economic sustainability of SMIC.
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7.3 MARINE M&R AND FABRICATION CENTER-- A POTENTIAL DEVELOPMENT OPTION
To demonstrate how the SMIC uplands might be further developed with the expansion of M&R and
fabrication services, a potential M&R and fabrication build -out of SMIC was used. This potential build-
out assumes expansion of M&R and fabrication operations, together with Storage Units, and the
incorporation of public amenities and services. This build -out would increase utilization of the City Boat
Yard and lease out all initial development parcels for SMIC. As depicted in Figure 8, M&R and light
fabrication operations would be developed on parcels east of Olga Street, and at the northwest corner of
the Olga and Sorrel intersection. Private storage units are shown occupying the available parcel abutting
the northeast corner of the Olga and Sorrel intersection. Commercial amenities, food service, laundry, and
a convenience store are situated in the beach access corridor in the northern portion of the parcel north
of North Dock and the planned gravel ramp or beach landing area. A two-story building situated on the
1 -acre parcel northeast of Nash and Mustang would provide space for offices, a convenience store, laundry
services, and lavatories and showers. The City Boat Yard is shown at capacity, and the parcels encircling
Vigor's operation are utilized for vessel and equipment storage. The waterfront parcel immediately south
of North Dock is reserved for general dockside access and short-term use as needed to support maritime
operations. Preserving this working wharf area anticipates that a new dock would eventually be
constructed along the east shore to provide additional docking space for vessel loading, as well as for
short-term and in -water M&R service needs. As noted, a structure for food service and public amenities
is provided in the beach access area north of the North Dock, along with parking and landscaping. These
services and amenities would be used by people working at SMIC and by visitors to the beach area.
Ft
ure 8: SMIC Conceptual M&R and .Fabrication Build --Out
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It is assumed that available parcels are leased by new tenants, and that these new tenants develop the
parcels to support and sustain on-going M&R operations, including light fabrication and restoration
services. Accordingly, tenant improvements include a structure for offices and parts or material storage,
and sheltered areas for M&R and fabrication or restoration work. With this build -out, SMIC receives lease
payments for the tenanted parcels, and storage fees and short-term work area rental fees. The City
additionally receives property taxes on the tenant improvements, as well as sales taxes from commercial
transactions. Retail services, including convenience shops and food outlets, are included in the build -out,
generating additional sales tax revenues for the City and supporting higher property values and taxes.
7.4 SMIC CURRENT AND POTENTIAL OPERATING REVENUE
7.4.1 2014 Operating Revenue
In 2014, total operating revenue for SMIC was $469,792.66. SMIC generates revenue from various
activities, including land rents and leasing of the upland parcels; boat lift fees; vessel storage fees; boat
wash down fees; moorage and wharfage; and fueling and labor services. As presented in Table 4, the
majority of revenues are received from Land Rents and Leases (33.2%), Boat Lift Fees (28.5%), and
Storage Fees (22.99/6), which together make up 84.6% of total revenue, with the balance of 15.41/oreceived
from the other revenue sources of SMIC Power Sales, Wash -down Pad Fees, Moorage, Wharfage, Fuel
Pumping Fee, and Labor Services.
Table 4: SMIC's 2014 Operating Revenue
Based on the 2014 operating revenue and statistics, SMIC generated an average of $936 in Boat Lift Fees
and $751 in Storage Fees per vessel lift. The average Land Rents & Leases revenue was $4900/acre, with
the actual per acre lease revenue received for any a particular parcel depending on specific leasing
agreements with the City. A few of the leased parcels do not generate lease payments.
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1
Land Rents & Leases
$156,195
33.2%
2
Boat Lift Fees
$133,949
28.5%
3
Storage Fees
$107,481
22.9%
4
SMIC Power Sales
$45,864
9.8%
5
Wash -down Pad Fees
$7,956
1.7%
6
Moorage Fees
$6,763
1.4%
7
Wharfage Fees
$5,995
1.3%
8
Fuel Pumping Fee
$4,698
1.0%
9
Labor &Services
TOTX bPFRATINGI REVENUE
$892
"s46.9,793
0.2%IF
100-()%'
Table 4: SMIC's 2014 Operating Revenue
Based on the 2014 operating revenue and statistics, SMIC generated an average of $936 in Boat Lift Fees
and $751 in Storage Fees per vessel lift. The average Land Rents & Leases revenue was $4900/acre, with
the actual per acre lease revenue received for any a particular parcel depending on specific leasing
agreements with the City. A few of the leased parcels do not generate lease payments.
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In addition, revenues generated through sales taxes and property taxes at SMIC accrue to the City's general
fund accounts, and not to the SMIC Enterprise Fund. Privately owned structures and improvements
established on leased parcels are taxed on the basis of their assessed value; however, this does not affect
the land lease rate which is based on an assessment of the land value only.
7.4.2 Potential Operating Revenue
To estimate the potential revenue that would be derived with the M&R build -out as one of the
development options of the Initial Development Area parcels, the currently available 35.6 acres are
assumed to be leased out at a constant rate per acre, and the estimated uplands capacity of 330 vessels per
year is assumed to be fully utilized to support M&R and storage services. As discussed earlier, the annual
capacity of the City TraveLift is estimated to be 580 vessel lifts, which is sufficient to support the holding
capacity of the upland area of about 330 vessels a year. Some number of the larger vessels that cannot be
handled by the TraveLift would be hauled out by the Synchtolift, or use the proposed gravel beach ramp
north of the North Dock.
For land rents and leases, the leasing rate for City -owned land is currently 8% of the assessed land value.
According to the City, an unimproved one -acre parcel at SMC is assessed at a value of $75,000, which
would lease for $6,000 per year. Land values are reassessed at five-year intervals, resetting the baseline
leasing rate. Accordingly, land lease rates will be increased as land values in the area improve. In the
revenue estimate, all figures are expressed in constant 2014 dollars and not escalated to account for greater
land valuation or inflation.
With these capacity and revenue rate assumptions, a revenue estimate can be projected for SMIC given
the conceptual M&R build -out. As expressed in constant 2014 dollars, annual revenues at full build out
of the initial development area would be $1,655,688, as shown in Table 5. The revenues shown for Land
Rents & Leases reflect the current lease rate and land value assessment of $75,000 per acre, and Boat Lift
Fees and Storage Fees are estimated at the average lift and storage fee per lift based on 2014 data. The
remaining revenue items comprising 15.49/o of total revenues are extended proportionately by item in
relation to total revenue.
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SO
1
r * • rNCE
Land Rents & Leases
PT UAL i
■
$156,195
$418,746
2
Boat Lift Fees
$133,949
$545,161
3
Storage Fees
$107,481
$437,440
4
SMIC power Sales
$45,864
$161,638
5
Wash -down Pad Fees
$7,956
$28,038
6
Moorage
$6,763
$23,836
7
Wharfage
$5,995
$21,129
8
Fuel Pumping Fee
$4,698
$16,558
9
Labor & Services
$8921.$3,142
.:
Table S:.Initial Development Area Concepival.Barrld-out - Poteniial Operating Revenue
In addition to the potential operating revenue demonstrated in Table 5, with improvements made to the
North and East docks, it is likely that the use of these facilities would increase for logistics and in -water
M&R activities, with the result that revenues from these activities (Wharfage, Fuel Pumping Fee, and
Labor & Services) would increase more than the proportioned amount shown in Table 6. Moreover, to
the extent that this potential demand is realized, the City would have a degree of flexibility to upwardly
adjust the land lease and sales tax rates, as well as the other service fees, applicable at SMIC.
7.5 CAPITAL IMPROVEMENTS AND OPERATING EXPENSES
It is broadly recognized that completion of the breakwater will increase the usefulness of the SNIIC basin
for maritime operations and docking, and help to attract a greater number of vessels to SMIC for M&R
services. A number of current M&R service providers have identified plans to expand their businesses
and operations at SMIC, and a few potential new users were identified in the course of the SMIC user
interviews. These near- to mid-term expansions and potential additional users offer some guidance as to
the infrastructure and service improvements that could be made by the City in coordinating investments
with these private sector businesses and maritime operators.
Previous studies have generated a number of possible capital improvements that could be made at SMIC,
and current and prospective users participating in this current effort confirmed that the following list of
capital improvements would contribute to the expansion of on-going M&R operations and help attract
new private sector investments.
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These possible capital improvements include:
1
Electricallmprovements/Substation
$200,000
2
Electric Infrastructure Improvement
$200,000
3
North Dock Repair
$750,000
4
Drainage System Improvement*
$1,200,000
5
Security and Fencing*
$300,000
6
Restroom Facilities
$36,000
7
Travel-ift Pier & Extension
$300,000
8
Replacement of 4 Dolphins
$1,000,000
9
1 Gravel Ramn
$150,000
*For the City Boat Yard Area
Table 6.• SMIC Improvement Pry, jean anri Cost Estimates
At SMIC there are now two options for hauling out vessels: the Synchrolift can haul -out vessels up to
5,000 tons, 350' in length and 80' in width; and the City TraveLift which can handle vessels up to 330 tons
and 32' in beam. The Synchrolift is operated by Vigor under agreements with the City, and by these
agreements vessels hauled out by the Synchrolift can only be worked on by the Vigor Shipyard.
Some interview participants suggested it would help to expand their businesses if Synchrolift users had
the option to use M&R service providers of their choice, as opposed to having to use Vigor. Moreover,
some participants suggested the City could widen the Travel ift piers to allow vessels with a beam wider
than 32' the option of using either the TraveLift or the Synchrolift. Others suggested the creation of a
gravel ramp to bring up large barges and vessels of certain types by airbags, a practice widely used in many
shipyards. Widening of the TraveLift and installing a gravel barge ramp would provide for additional users
of the upland storage areas and more business for the M&R operations. Providing a range of options to
vessel owners will increase the overall use of SMIC and grow the M&R services and fabrication business
for all the operations at SMIC.
The existing finished grades throughout much of SMIC are uneven, which causes puddling and differential
wear and settling. Improving the current condition of grading and paving has been identified as an
immediate improvement priority by the current tenants, and a desired condition for prospective users.
The capital expenditure (CAPER} estimates for the improvements identified in Table 6 have been
compiled from a number of previous studies and preliminary estimates provided by the City, and as such
represent a rough order of magnitude estimate of possible CAPEX expenditures at this point. In general,
the City intends to extend utilities incrementally with the tenanting of the available parcels, and repair and
improve the docking structures as funding opportunities are identified.
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Operating expenses at SMIC for FY2015 were budgeted at $430,817. With the new breakwater and the
extension of utilities and service systems along with the build -out of the SMIC upland areas, these annual
operating expenses will accordingly increase. Nevertheless, the revenue estimate suggests that SMIC can
readily achieve financial sustainability with the facility operating at available capacities. In addition, as
activities at SMIC increase, the City would have the ability to adjust fiscal policies in order to keep a proper
alignment between revenues and operating expenses.
MANAGE MEC)T t PLICAi IONS AND POLICY CONSIDERATIONS
8.1 LEASING POLICIES
The City's Municipal Code (Chapter 7.05 —Acquisition and Disposal of Real Property) contains provisions
for the disposition of the City's interest in real property, including lease agreements. Code provisions
require that a public hearing be held prior to the disposition of real property, with the essential terms and
conditions of the proposed disposition or lease presented, and that the City Council approve an
authorizing resolution confirming that the essential terms and conditions, and the method of disposition,
are in the public interest. Essential temas and conditions of City leases generally include length of the lease,
rental rate, and development agreements. The amount of rent paid to the City for leased properties is
adjusted to fair market value on July 1 of every fifth year through the term of the lease. Sections of this
Code grandfathered exclusions and provided for exceptions to the fair market adjustment where the
Council finds that the public interest will be served. The Code also authorizes the City Manager to
negotiate short-term leases (not exceeding 120 days) of City property, provided the Council passes a
resolution approving such leases at the next regularly scheduled City Council meeting.
A number of leases are in place at SMIC, and these leases include performance clauses requiring the lessee
to improve and use the land for a business purpose, and not to hold it for speculation. Two of the leases
in place are long-term, 99 -year leases.
A desktop review was conducted of standard leasing policies and terms at a number of West Coast
harbors, including the ports of Anchorage, Ketchikan, Everett, Seattle and Los Angeles. This review
showed that the City's leasing policies were relatively well defined and structured, and were generally
consistent with the governance and lease rate provisions found at other West Coast harbors. Most of the
harbors allowed short -terra leases to be negotiated and implemented by senior management, with longer-
term leases requiring approval by the Council or Board of Directors. Several harbors specifically limit the
extent of long-term leases, such as the port of Anchorage's 55 -year limit and the port of Los Angeles's
30 -year limit. Long-term leases are typically conditioned on the lessee making significant leasehold capital
investments to develop the property and, for any leases extending beyond the statutory term, the Board
or Council would need to find appropriate public benefits. With these reference examples, the 99 -year
lease agreements in place at SMIC would represent exceptionally long lease terms. Leases of exceptional
33
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duration tend to limit the ability of the City to prepare and implement long -ravage master pians, or a specific
area development plan, for the SMIC facility, and, accordingly, should only be approved where the City
Council finds sufficient public benefit.
Under current lease agreements at SMIC, tenants are responsible for the preparation of the leased site and
for raising elevation of a parcel to the level required for their intended structure and operations. Over time
these works by the tenants have progressed in a piecemeal fashion as parcels have been leased out. These
circumstances tend to compromise efficient operations at SMIC, in both the near and long term, and
contribute to the grade differentials at SMIC that cause puddling and icing conditions.
A number of harbors, such as Kotzebue, are implementing rental and storage space rates on the basis of
square area rather than on vessel length. The area rate method tends to increase the applicable rental rates,
and would represent a policy option the City can consider for SMIC. As noted previously, SMIC provides
a unique value proposition to larger vessels with its existing lift capacity, and establishing space rental and
use rates on the basis of area versus overall vessel length would work to increase space rental revenues.
8.2 LAND USE AND ZONING CODE
Presently at SMIC all of the parcels forming the Initial Development area are zoned for Industrial (I) use,
and the Future Development parcels are zoned as Resource Management (RM). Under the zoning code,
uses within a designated zone are limited to those enumerated specifically in the code. Industrial uses
include repair, fabrication, storage, and wholesaling and distribution operations, along with other business
uses generally considered to be a nuisance or otherwise incompatible with residential uses. As such, the
existing zoning is consistent with a M&R and fabrication focused build -out incorporating some measure
of commercial and public services.
The City's Comprehensive Plan (CP) recommends an updating of the zoning code to address a number
of non -conforming uses and the pattern of development which has occurred since adoption of the plan.
This update of the zoning code could consider introducing a new zoning designation, such as Employment
Lands, which would allow for the inclusion of a limited number of work/live units as part of the existing
or future M&R structures at SMIC, or the development of work/live condominiums or artists' lofts. The
Employment .bands zoning designation is common in British Columbia, where it is applied to preserve
industrial uses and promote employment in water -fronting communities. Permitting a certain number and
type of residential occupancies at SMIC would work to enliven the overall development and support a
modest growth of commercial services as envisioned in the potential M&R build -out. The zoning code
presently defines a Commercial Building Apartments category which, accommodates a mix of residential
and commercial uses within a building, as well as Watchman or Caretaker dwellings category that allows
accessory dwellings for industrial or commercial uses. Implementing an Employment Lands zoning code
as an overlay district applicable to the existing zoning designations, such as Industrial and Commercial
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5EWARO MARINE INDIZTRWL CENTER EXRRPACIN
zones, would work to establish an Employment Lands zoning ordinance with a minimal impact on existing
zoning codes.
8.3 FISCAL, AND MANAGEMENT POLICIES
The City has the ability to treat SMIC as a special tax district, which allows a degree of flexibility in the
application of city tax schedules. Some prospective businesses mentioned they would explore market
opportunities available at SMIC, and would consider any incentives provided by the City in terms of
development services, management policies, and the regulation of property taxes. Accordingly,
development policies for SMIC could incorporate a graduated scale for property taxes to incentivize
desired property developments.
Vessel operators managing larger fleets of vessels routinely schedule the laying up and servicing of their
vessels well in advance. As these operators represent a stable and long-term potential user of the SMIC
facilities, instituting management practices addressing this scheduling needs of large scale operators would
work to bolster SMIC revenues on an annual and recurring basis. In shaping these management policies,
provisions could be included that secure payment for the use of space reserved in advance in the event
that the vessels do not arrive as scheduled.
To optimize the operational efficiency and attention to user requirements and schedules, the City could
consider contracting with a third party operator of the City Boat Yard. This operator would be encouraged
to increase the overall efficiency of the boat yard and use of the TraveLift, and to invest in improvements
in the facilities to expand the range of services that can be performed on site, such as the building of a
sheltered work area. In addition, a third party operator would be able to proactively market the use of the
boat yard to the Alaskan fleet.
The City's administrative and management policies can affect how well SMIC operations work in
conjunction with the ARRC Dock Facility. The ARRC dock has shipping and logistic advantages, along
with upland areas for logistic support. In terms of dock and upland storage space, SMIC could represent
a complementary option to the ARRC dock for long terns, offseason docking. Discussions between the
City and ARRC should seek to emphasize the compatiblc attributes of the two facilities and work to
minimise cost -based competition where services might overlap.
8.4 PROMOTION AND MARKETING OF SMIC
To hasten the attraction of additional M&R investments and vessels to SMIC, the City could initiate a
proactive campaign to promote and market the investment opportunities and range of M&R services and
educational activities available at SMIC. As noted previously, SMIC, with its large lift capacities and
available working and storage areas, presents a unique value proposition to the Alaskan fleet, and
particularly so for larger vessels. Attracting more vessels would also serve the interests of the existing
35
70191
M&R operations, which suggests that a cooperative and straightforward effort by the City and current
SMIC users to engage and attract the operators of the larger vessels in the Alaskan fleet would be a
worthwhile undertaking.
A campaign focused specifically on engaging the operators of the 2,090 vessels in the Alaskan fleet of 50'
or greater in length is recommended. This number of prospective users can be contacted directly, and, by
engaging these operators to learn of any obstacles to their use of SMIC, any issues can be addressed
directly with the operator or through adjustments in operational practices. The number of established
M&R providers in the Pacific Northwest is also limited, and these operators can be engaged directly to
encourage their investment in SMIC. Similarly, the providers of marine vocational training and educational
opportunities are few in number and can be directly contacted about expanding and coordinating
education and economic development options at SMIC.
The coordinating of promotion and marketing efforts by the City with current users, potential new
businesses, and community interests would be facilitated with the formation of an Advisory Committee,
as recommended by participants in the SMIC work session. In particular, the Advisory Committee would
serve to encourage the ongoing participation of the public, current and future users, project stakeholders,
and new partners in the continuing development of SMIC.
The Advisory Committee would also be beneficial in seeking synergies between the educational and
vocational training facilities at SMIC and in attracting additional research activities and workforce
participation programs.
CONCLUSION
Cumulative investments, including the new breakwater structure, by the City, State, educational and research
institutions, and private sector interests have worked to establish SMIC and Seward as a major marine
industrial. center. Leveraging and building on these in-place assets represents an immediate- to near-term
development approach capable of meeting the City's goals of establishing sustainable commercial activities at
SMIC, and supporting the economic development aims of the State.
Current and prospective users of SMIC see opportunities to expand operations or introduce new marine
industrial and storage activities, and there is demonstrated support for continued M&R and fabrication
development, along with an expansion of marine vocational training and arctic research facilities and activities.
Market conditions and regulatory actions suggest that the need for M&R and fabrication services by the
Alaskan fleet will be increasing, and with its available vessel haul -out capacity and available work and storage
areas, SMIC enjoys a relative competitive advantage to attract more of the Alaskan fleet, and particularly the
larger vessels of greater than 50'.
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SL' 90 PURINE MDUMLAL cmvm ExrmpoN
As an example, a potential build -out of the Initial Development Area focusing on the shipyard and M&R
facilities suggests that, with a greater utilization of the capacities in place, SMIC has the potential to generate
a multiple of its current operating revenues, and the City has a degree of flexibility in terms of operating
practices and fiscal policies to incentivize these developments.
Stakeholders and subject matter experts participating in the work session were encouraged to consider a broad
range of possible future development alternatives for SMIC. Participants at this work session generally
Overall, however, no
single best option for
developing the SMIC
uplands emerged in the
course of this study.
Accordingly, any near-
term public investments
should be consistent
with maintaining
flexibility in development
options and the broader
reiterated the infrastructure and operational concerns raised by the
interview participants, and lent support to the continued growth of M&R
and fabrication operations at SMIC while encouraging an expansion and
energizing of the vocational training and possible Arctic research activities.
The infrastructure improvements made to date, the expressed interests of
current and prospective users to expand operations and to make new
investments, and the observations and suggestions from the broader
stakeholders group support near-term opportunities for M&R and
fabrication operators to expand their operations at SMIC.
Attracting additional users to the facility will improve overall utilization of
the boat yard and upland areas. With the growth of marine industrial
services available at SMIC and a continuing expansion of education and
vocational training activities, the City will be able to invest in capital
improvements and public amenities, thereby promoting further commercial development and a broadening
of the range of marine related services and educational activities available at SMIC.
The following recommendations are put forward by AIDEA's Project Development and Asset Management
team for the City to consider in evaluating options for continuing the SMIC facility development in a manner
consistent with both public and private interests:
City of Seward should consider formalizing an active governance structure to include an Advisory
Committee representing businesses, industry experts, stakeholders and user groups to oversee and
direct the City's interest in the future development and promotion of SMIC
• Address current deficiencies and advance facility improvements at SMIC to meet the needs of current
tenants and users, and to encourage private sector investment and developments
• The City of Seward and broader community should collectively promote and market the advantages
of SMIC, emphasizing the advantages that the port facilities of Seward offer in terms of location and
connectivity to the state's urban centers, rail facilities, and cargo capacities of the Anchorage airport
37
72191
38
• Encourage the development of partnerships between the University of Alaska, AVTEC and industry
partners to create a workforce development/new product incubation facility at SMIC to provide
maritime vocational training and education as well as potential research through the University, and
a Consider zoning modifications permitting the inclusion of housing, convenience shopping and food
services at SMIC as the area becomes further developed.
9.1 IMPLEMENTATION OF RECOMMENDATIONS
To implement some of the recommendations presented above, a series of planning activities would likely
be required, as discussed below.
Suggested Planning Activities
Formally establish a SMIC Advisory Committee chartered by the City Council to oversee development
and management policies for SMIC and to recommend actions to be undertaken by the City. Members of
the committee should be designated by the Council or Mayor and represent a range of business and
community interests.
The Advisory Committee should be supported by a full-time planning staff member of the City. This
planner would be charged with drafting and gaining approval of the committee By -Laws, preparing an
annual work plan, budget and schedule for the Advisory Committee, planning support, preparing
committee meeting agendas, implementing studies and investigations approved by the Advisory
Committee, and maintaining documentation of the committee's activities. This planner support position
could be funded through the SMIC Enterprise Fund.
Key priorities for the SMIC planning support position would be to establish the Advisory Committee and
gain the committee's approval of an annual work plan and budget, possibly including-
Work
ncluding
Work plan elements including a revised condition assessment of the SMIC facilities and confirmation
of capital improvements desired with completion of the new breakwater structure
• Preparation of a Specific Area Plan for SMIC and an update of the Zoning Code to permit a broader
mix of land uses
• Strategies to revise property tax and sales tax schedules reflecting the funding requirements identified
in the Specific Area Plan;
• Identify and pursue funding strategies to implement capital improvements and the Specific Area Plan
• Structuring of a promotion strategy to attract a more of the Alaskan fleet and to solicit new private
sector developments, and
■ Engaging with the University of Alaska and AVTEC to expand education, research and vocational
training activities at SMIC and expanding the use of AVTEC's full bridge simulator as a service
offering by SMIC to commercial vessel and equipment operators.
73191
im SMIC 4
$WARD MARwr wwrwL cuam txmmm
10. REFERENCE
City of Seward, 2014. "Seward Marine Industrial Center (SMIC) Enterprise Fund, Fiscal Year 2014 and 2015."
NEI, June 2012. "Economic Analysis and Financing Strategy for HoLzaeporting Community Development
Quota Vessels in Seward, Alaska."
Economic Development Council of Seattle and King County, November 2013. "Washington State Maritime
Cluster Economic Impact Study."
City of Seward, September 2009. Seward Marine Industrial Center Infrastructure Improvements, American
Recovery & Reinvestment Act (ARRA), Transportation Investment Generating Economic Recovery Surface
Transportation Discretionary Grant Program (TIGER).
McDowell Group, September 2014. "Trends and Opportunities in the Alaska Maritime Industrial Support
Sector."
NEI, April 2009. "Seward Marine Industrial Center Uplands Operations Analysis."
39
74191
GeNeil Flaherty
From:
Sent:
To:
Subject:
Boards & Commissions,
Brenda Ballou
Tuesday, July 31, 201812:06 PM
Brenda Ballou
Boards & Commissions Reporting for 2018
Just a quick reminder for your reporting obligations to council for calendar year 2018—thank you for your service —you
are MUCH appreciated1
Planning & Zoning Commission was directed to provide the following quarterly reports to council for the 2018 calendar
year:
1Q18 — in person report at a council meeting
2Q18 — written report submitted to City Clerk for inclusion in the council packet
3Q18 — in person report at a council meeting
+ 4Q18 — written report submitted to City Clerk for inclusion in the council packet
Port & Commerce Advisory Board was directed to provide the following quarterly reports to council for the 2018 calendar
year:
® 1Q18 — in person report at a council meeting
+ 2Q18—written report submitted to City Clerk for inclusion in the council packet
+ 3Q18 — in person report at a council meeting
• 4Q18 —written report submitted to City Clerk for inclusion in the council packet
Historic Preservation Commission was directed to provide an annual report to council for the 2018 calendar year.
Thanks,
Brenda
BRENDA J. BALLOU, MMC
CITY CLERK
NOTARY PUBLIC
CITY OF SEWARD
PO Box 167
SEWARD, AK 99664
PHONE (907) 224-4045
FAX (907) 224,4038
75191
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1
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Sponsors by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 20170$0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD9
ALASKA, AMENDING THE CITY OF SEWARD'S CALENDAR YEAR
2010 CITY LEGISLATIVE PRIORI'T'IES
WHEREAS, the City annually compiles.a list of projects or issues that are identified as
top legislative priorities; and
WHEREAS, this resolution validates projects, prioritizes needs, and focuses the efforts
of City Administration in its lobbying efforts; and
WHEREAS, the list of projects are compiled and distributed to the State of Alaska
Legislature, Kenai Peninsula Borough, and City of Seward lobbyists; and
WHEREAS, the passage of this resolution occurs through a public process; and
WHEREAS, all projects on this list are consistent with the City Comprehensive and
Strategic Plans.
NOW, THEREEFOIRE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CI'T'Y OF SEWARD, ALASKA, that:
Section 1. This list of city projects is hereby declared to be the official city priority list
for the City of Seward for calendar year 2018:
A. PORT, HARBOR, AND INDUSTRIAL AREA
1. $500,000 to pave the apron and add a wash down pad at the 50 -Ton Travelifl.
2. $1,250,000 for storm water discharge infrastructure and a security fence to surround
the city vessel storage area at the Seward Marine Industrial Center.
3. $1,241,250 for Seward Shipyard Environmental Discharge Controls.
4. $200,000 for engineering and design to replace failing infrastructure in the Seward
Boat Harbor including K and L Floats.
5. $200,000 to extend electrical power to X Float.
6. $500,000 for a 5 -ton crane at or near I Dock.
B. PUBLIC FACILITIES & INFRASTRUCTURE
1. $250,000 for initial design and engineering of a new 100' x 80' metal building to
replace and relocate the existing Public Works Shop (City will provide land for the
new building).
2. $2,000,000 to expand the Providence Seward Medical Center and move the CT
76191
CITY OF SEWA.RD, ALASKA
RESOLUTION 2017080
scanner into the facility, and provide space for primary health care (City provides
$500,000 annually towards capital improvements).
3.
$500,000 for Alaska SeaLife Center major repairs and replacements.
4.
$2 million to replace a failing roof at Alaska SeaLife Center.
5.
$200,000 for design and engineering for an indoor ice skating rink.
6.
$500,000 to envelop and upgrade windows at City Hall.
C. ELECTRIC
1,
$$ million to design and rebuild the electric transmission line from the Seward
Highway to the Seward Marine Industrial Center and upgrade the Spring Creek
substation by securing an alternative feed transformer to add capacity and reduce
system outages, and provide continuous service during maintenance periods.
2.
$1.5 million to repair and replace one mile of transmission line into the Fort
Raymond Substation with I I5kV compatible equipment (This is a project supported
by the Alaska Railbelt Cooperative Transmission and Electric Company (ARCTEC)
because the current condition of the transmission line exceeds the estimated life
expectancy of 50 years).
3.
$2 million to rebuild obsolete and aging infrastructure and add neve infrastructure
within the expanding Camelot Subdivision where development and growth require
the new updated system.
4.
The City is requesting $12 million to upgrade transmission conductors and substation
transformers to improve the system's capacity to I I5kV over existing 69kV capacity.
This would help unify the transmission system for the entire community and expand
the system's capabilities, allowing higher capacity projects into the future.
D. ROAD% STREETS, AND ADA ACCESSIBILITY
1. $300,000 for improving City ADA accessibility.
2. $2.9 million for design, engineering and construction to protect Lowell Point Road
from further coastal erosion. This road is the sole land access to critical public
infrastructure, State Parks trailhead, businesses, and the community of Lowell Point.
E. PUBLIC SAFE'T'Y
1. Up to $250,000 for a needs assessment and conceptual design and engineering for a
replacement Seward Fire Station. The City is experiencing growth on the west side
(fuel farm expansion and homes) and in the Seward Murine Industrial Center (City
will provide a match of land).
2. Up to $250,000 for initial design and engineering of -a Public Safety Building (City
will provide a match of land).
3. $1 million for a new animal shelter that is used by City and Borough citizens. (City
will provide a match of land).
77191
CITY OF SEWARD, ALASKA
RESOLUTION 1017.080
P. BENEFICIAL LEGISLATION
1. Support for feasibility analyses considering pipeline or multi -modal delivery methods
Of making natural gas available to communities not currently along a pipeline
corridor, and using Seward's road/rail/barge connections as demonstration projects.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
1 la' day of December, 2017.
THE CITY ®1F' SEWARD, ALASKA
David Squires, Mayor
AWES: Caisaigranda, Keil, McClure, Slater, Towsley, morn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
41A,-14
dt
13frZ;n_da_ J. Ball
City Clerk
(City
ity Seal) 6G
d
SEAL
1
78191
Agenda Statement
Meeting Date: November 27, 2017
To: City Council
Through: Jim Dunt, City Manager
Agenda Item: Calendar Year 2018 City, State and Federal Priorities
BACKGROUND & ST A
The City annually compiles a list of projects or issues that we identify as our top City, State and
Federal legislative priorities. The list of projects is compiled into a package that is distributed to the
Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative
package), and our lobbyist. The list validates projects and greatly focuses the efforts of the
Administration in our lobbying effort as we seek funding or other resolutions both through the State
of Alaska and Federal sources. This year the three lists include projects that are in the planning
phase and/or may qualify for grants in addition to some projects with which Council is familiar. In
order to quality for most grants, the City must include these projects on the City priority list.
II
This list of priorities focuses the efforts of Administration in lobbying efforts to obtain
appropriations, grants, and legislation from the State and Federal sources to improve the City of
Seward. To qualify for most appropriations and grants Seward's City, State and Federal priorities
lists must be approved in a public process by the City Council.
CONSISTENCY CHEC .IST:
Yes
No
N/A
1. I Comprehensive Plan Sections 3. I Economic Development
X
2.
Strategic Plan Entirety
X
3.
Other (list):
X
FISCAL, NOTE: AIA
Approved by Finance Department:
ATTORNEY RE'yIYes No—x— Not Applicable X
RECD TI
Council approve Resolutions 2017-080, 2017-081, and 2017-082, approving the City of
Seward's Calendar Year 2017 City, State and Federal priorities.
79191
CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE CI'T'Y OF SEWARD'S CALENDAR YEAR
2018 STATE LEGISLATIVE PRIORITIES
WHEREAS, the City annually compiles a list of projects or issues that are identified as
top legislative priorities; and
WHEREAS, the list of projects are compiled and distributed to the State of Alaska
Legislature, Kenai Peninsula Borough, and City of Seward lobbyists; and
WHEREAS, this resolution validates projects, prioritizes needs, and focuses the efforts
of City Administration in its lobbying efforts; and
WHEREAS, the passage of this resolution occurs through a public process; and
WHEREAS, all projects on this list are consistent with the City Comprehensive and
Strategic Plans.
NOW, 'THEREFORE, BE 17 MOLYED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. This list of City projects is hereby declared to be the official State priority list
for the City of Seward for calendar year 2018:
A. BENEFICIAL LEGISLATION
1. Legislative support for maintaining the current level of State contributions into the
PERS/TRS Retirement System on behalf of local governments, and for not extending
the amortization period, in order to offset unfunded retirement system liabilities and
to make future contribution rates more affordable for the state and local governments.
2. Support for continuing Medicaid programs and capital cost reimbursement at not less
than current year funding levels.
3. Legislative support for continuing Alaska Energy Authority (AEA) programs that
promote energy efficiency and conservation to help mitigate the costs of heating
homes and businesses not served by natural gas.
4. Legislative support for feasibility analyses considering pipeline or multi -modal
delivery methods of making natural gas available to communities not currently along
a pipeline corridor, and using Seward's road/rail/barge connections as demonstration
$0191
CITY OF SEWARD, ALASKA
RESOLUTION 2017-091
projects.
5. Legislative support for matching City funds towards the non -Federal 5011a cost share
of the U.S. Army Corps of Engineers study required to address the Lowell Canyon
Diversion Tunnel hazard.
6. Continued support for the State Department of Transportation and Public Facilities
Municipal Harbors Grant Program.
E. CAPITAL PROJECTS
Recognizing the current government sector fiscal reality and its potential private sector economic
impacts, the City of Seward is limiting its capital improvement project requests to those where
the State's participation would leverage other significant funding, complete projects already
underway, address projects of immediate life and safety, and enable projects that could be
eligible under a statewide bond package if the State pursues and the voters approve such a plan.
1. $$ million to design and rebuild the electric transmission line from the Seward
Highway to the Seward Marine Industrial Center facility and upgrade the Spring
Creek substation by securing an alternative feed transformer to add capacity and
reduce system outages, and provide continuous service during maintenance periods.
2. $12 million, to upgrade transmission conductors and substation transformers to
improve the system's capacity to 115kV over existing 69 kV capacity. This would
help unify the transmission system for the entire community and expand the system's
capabilities, allowing higher capacity projects into the future.
3. $500,000 for systems maintenance and repairs at the Alaska SeaLife Center.
4. $500,000 for a hull wash water collection and treatment system at the 50 -Ton
Travelift.
5. $2 million to expand the providence Seward Medical Center, move the CT scanner
into the facility, and provide space for primary health care (City provides $500,000
annually towards capital improvements).
6. $1,241,250 for Seward Shipyard Environmental Discharge Controls.
C. CRUISE PASSENGER VESSEL TAX REGIONAL IMPACT FUND OR CRUISE
SMP GAMBLING TAX
1. Appropriating funding for the Alaska Railroad Corporation Seward Marine Terminal
Expansion project supporting both passenger and freight activities.
81191
CITY OF SEWARD, ALASKA
RESOLUTION 2017-681
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
11 �n day of December, 2017,
THE CITY OF SEWARD, ALASKA
David Squires, M or
AXES: Casagmnda, Keil, McClure, Slater, Towsley, Horn, Squires
AIDES: Alone
ABSENT: None
ABSTAIN: None
ATTEST:
.; -�,
. .. .City Clerk
(City Seal)
+OF �3p�Eii-r4"9 �
..
S 'EAL
•
0�1��`�i
1
82191
Agenda. Statement
Meeting Date: November 27, 2017
To: City Council
Through: Jim Hunt, City Manager
Agenda Item: Calendar Year 2018 City, State and Federal Priorities
BACKGROUND & TI IC
The City annually compiles a list of projects or issues that we identify as our top City, State and
Federal legislative priorities. The list of projects is compiled into a package that is distributed to the
Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative
package), and our lobbyist. The list validates projects and greatly focuses the efforts of the
Administration in our lobbying effort as we seek funding or other resolutions both through the State
of Alaska and Federal sources. This year the three lists include projects that are in the planning
phase and/or may qualify for grants in addition to some projects with which Council is familiar. In
order to quality for most grants, the City must include these projects on the City priority list.
gNT
This list of priorities focuses the efforts of Administration in lobbying efforts to obtain
appropriations, giants, and legislation from the State and Federal sources to improve the City of
Seward. To qualify for most appropriations and grants Seward's City, State and Federal priorities
lists must be approved in a public process by the City Council.
C T CY HXCXLIST•
Yes
No
N/A
1.
I Comprehensive Plan Sections 3.1 Economic Development
X
2.
3.
Strategic Plan Entirety
Other (list):
X
X]
FISCAL NOTE*, N/A
Approved by Finance Department:
ATTORNEY REVD Yes No_X_ Not Applicable—X
RECONIIMNDATIUS:
Council approve Resolutions 2017-080,2017-081, and 2017-082, approving the City of
Seward's Calendar Year 2017 City, State and Federal Priorities.
83191
Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017482
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ESTABLISHING THE CITY OF SEWARD'S CALENDAR
YEAR 2018 FEDERAL LEGISLATIVE PRIORITIES
WHEREAS, the City annually compile'S a list of projects or issues that are identified as
top Federal legislative priorities; and
WHEREAS, the list of projects is compiled and distributed to the Kenai Peninsula
Borough, our congressional delegation and City of Seward federal lobbyist; and
WHEREAS, this resolution validates projects, prioritizes needs, and focuses the efforts
of City Administration in its lobbying efforts. and
WHEREAS, the passage of this resolution occurs through a public process; and
WHEREAS, all projects on this list are consistent with the City Comprehensive and
Strategic Plans.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCML OF VHE
CITY OF SEWA, ALASKA, that:
Section 1. The following list of legislative projects is hereby declared to be the official
legislative priority list of the City of Seward for 2018:
A. APPROPRIATIONS AND GRANTS
1. $1.5 million appropriation to the U.S. Arany Corps of Engineers for the City's 50%
cost share for a necessary Lowell Creels Flood Diversion Feasibility Study.
2. $7 mullion for a comprehensive Seward Flood Mitigation Program on the watershed
level by the U.S. Army Corps of Engineers.
3. $2 million to expand the Seward Medical Center, move the CT scanner into the
facility. and provide space for primary health care (City provides $500,000 annually
towards capital improvemcnts).
4. $3 million appropriation for Lowell Point Road storm surge mitigation, bank
stabilization and erosion control projects (from a Section 103 study by the U. S. Army
Corps of Engineers).
5. $1 million appropriation for erosion control projects (from a Section 14 study by the
U.S. Army Coups of Engineers) for the Seward Marine Industrial Center and the
$4191
CITY OF SEWARD, ALASKA
RESOLUTION 2017-082
Alaska Railroad Dock.
6. $2.496 million in the Highway Transportation Dill for design, engineering,
construction and protection form coastal erosion for the Lowell Point Road, the sole
land access to residences, critical infrastructure, and a State Parks trailhead.
7. Appropriating funding for the Alaska Railroad Corporation Seward Marine Terminal
Expansion project supporting both passenger and freight activities.
8. $250,000 for operating the Alaska, live stranding network and responding to marine
mammal and seabird live stranding and mortalities throughout Alaska.
D. AUTHORIZATIONS AND BENEFICIAL LEGISLATION
1. Authorization and appropriation for $1.2 million local government cost share owed
by the City of Seward to the U.S. Army Corps of Engineers, satisfying the total cost
share requirements for Phase 2 of the Seward Harbor Expansion Project (additional
costs were incurred in a second phase of the project to correct a design deficiency by
the U.S. Army Corps of Engineers; the City has paid $869,613.22 for its share of
Phase 1).
2. Authorization language amending the Vater Resources Development Act of 2007
(Public Law 110-114, 121 STAT. 1205) as follows:
a. Amending Section 5032 by: 1.) striking "Tunnel" from the title; 2.) striking
"Long -Term" from subsection (a); 3.) striping "Long -Term" from subsection
(a)(1); and, 4.) striking "Long-Tertn" from subsection (a)(2).
b. Striking subsection (b) in Section 5032 and inserting language directing the
Secretary to conduct a study to determine whether an alternative method of flood
diversion in Lowell Canyon is feasible. Feasibility shall be determined based on
risk reduction rather than cost -benefit analysis. Federal cost -share for the study
shall be the same as the Federal share for the original project.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
27"' day of November. 2017,
1
85191
1
1
1
CITY OF SEWARD, ALASKA
RESOLUTION 2017-002
THE CITY OF SEWARD, ALASKA
David Squires, MOor
AYES: Casagranda, Keil. McClure. Slater, Towsley, Horn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballo , MMC
City Clerk
(City Se 4b ®F•��,
0SEALI
t
pegr��•� OF
B @aaovoaaal%5
$6191
Agenda Statement
Meeting Date: November 27, 2017
To: City Council
Through: Jim Hunt, City Manager
Agenda Item: Calendar Year 2018 City, State and Federal Priorities
The City annually compiles a list of projects or issues that we identify as our top City, State and
Federal legislative priorities. The list of projects is compiled into a package that is distributed to the
Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative
package), and our lobbyist. The list validates projects and greatly focuses the efforts of the
Administration in our lobbying effort as we seek funding or other resolutions both through the State
of Alaska and. Federal sources. This year the three lists include projects that are in the planning
phase and/or may qualify for grants in addition to some projects with which Council is familiar. In
order to quality for most grants, the City must include these projects on the City priority list.
INTENT:
This list of priorities focuses the efforts of Administration in lobbying efforts to obtain
appropriations, grants, and legislation from the. State and Federal sources to improve the City of
Seward. To qualify for most appropriations and grants Seward's City, State and Federal priorities
lists must be approved in a public process by the City Council.
CONSISIE T:
Yes
No
N/A
I.
Comprehensive Plan Sections 3.1 Economic Development
X
2.
Strategic Plan Entirety
X
3.
Other (list):
X
Il'IESC Lc N=: N/A
Approved by Finance Department:
MORNEX RFgYJLW; Yes No X— Not Applicable—x
LILCQ1 MENPATIQN•
Council approve Resolutions 2017-090,2017-081, and 2017-082, approving the City of
Seward's Calendar Year 2017 City, State and Federal Priorities.
M
$7191
1
Sponsored by: Port and Commerce Advisory Board
CITY OF SEWARD, ALASKA
RESOLUTION 2018.006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA ADOPTING THE PORT AND COMMERCE ADVISORY
BOARD PRIORITIES FROM FEBRUARY 2018 TO FEBRUARY 2019
WHEREAS, the Port and Commerce Advisory Board's (PACAB) responsibilities ate
listed in SCC§ 2.30.325 Powers and Duties; and
WHEREAS, City Council and PACAB held a joint work session on March b, 2017 to
review and update the current Priorities List; and
WHEREAS, at their January 3, 2018 Regular Meeting, the Port and Commerce Advisory
Board reviewed and updated their Priorities List, and
WHEREAS, with the passage of PACAB Resolution 2018001, PACAB recommends
Council adoption of the 2018 Priority List.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The following List of Priorities through February, 2019 is hereby approved:
PORT AND!CQM--MERCE ADVISORY BOARD PRIORITIES
1) Review taxes, especially vessel property tax.
2) Review the Harbor Tariff.
3) Work to support industries to Seward including the CDQ fleets and related industries, Oil &
gas related industries, transportation, and commercial fishing.
4) Help lead Seward Marine Industrial Center (SMIC) development.
5) Prioritize Federal and State Priorities for Port & Commerce Initiatives
b) Explore energy alternatives (Wind, Solar, Geothermal and Hydroelectric etc.) and
alternatives to energy (BIO fuel, LNG etc.).
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of Seward, Alaska this 22`x` day of
January, 2018.
88191
CITY OF SEWARID, ALASKA
RESOLUTION 201&006
THE CITY OF SEWAID, ALASKA
IDaAd Squires, W - r
AYES:
Keil, McClure, Slater, Towsley, Horn, Squires
NOES:
Casagranda
ABSENT:
None
ABSTAIN:
None
ATTEST:
(City seal) .•�.��a[s��xe
of S
r
d
";�,e OF fk\
r[p1�tl i� a 1 i�.r
89191
1
1
Chairperson Terry and members of Port and Commerce Advisory Committee
After our meeting on Wednesday I reached out to Barbara Beaton, Project Manager for the
Alaska Department of Transportation. Ms. Beaton is overseeing the Seward Airport
Improvement Project.
Current status is that the plans for the improvements are 70% complete and they are out for
review. The plans include eliminating the current long runway at the airport and moving and
improving the shorter runway. The shorter runway will be extended to 3,300 feet. However, the
project includes securing the property and building the sub base of the runway for 4,000
feet. This includes necessary drainage and flood protection work for the new runway.
The FAA will not extend the runway for the extra length to accommodate the Coast Guard
Aircraft. According to Ms. Beaton the FAA cannot extend runways for DOD aircraft. It is up to
the DOD to provide runways .for their aircraft.
By the end of November, they will be in Seward to hold a public meeting on the Environmental
Impact Statement (EIS). The EIS must be completed before they can produce plans for bidding
and construction.
DOT is looking at April / May time frame to begin construction. The construction will include a
new maintenance building and new sand storage building.
The FAA has provided as much improvements toward a longer runway that they are allowed to
provide given the design aircraft for the airport. The fact that DOT is building the 3,300 for the
weight for larger planes and building the sub base for a 4,000 -foot runway is very
positive. Finding a way to pay for the surfacing of the additional 700 feet is the challenge. The
original project Scoping Report had the extra cost between the 3,300 -foot runway and the 4,000 -
foot runway to be $5,000,000. However, we do know if that $5 million -dollar difference
included the land and the sub base which are now included in the 3,300 -runway project. Getting
a new number for the surfacing of the 700 feet to make it a 4,000 runway would be very
beneficial as we seek funding for the enhanced length.
To be able to design for a larger aircraft, there would need to be 500 flights of the larger aircraft
per year before they change the design aircraft for the airport.
I thanked Ms. Beaton and the Department of Transportation providing as much as they can in
this project for the Seward Airport.
Jeff
90191
PACAB Goals Calendar 2018
Meeting Schedule Regular Meeting Work session
REGULAR MEETING
SUGGESTED AGENDA ITEMS
January 3
•
Review, discuss, approve Annual Report to Council
January 17
•
Energy Alternatives
February 7
•
Energy Alternatives
February 21
•
Energy Alternatives
•
South Harbor Launch Ramp Discussion with PND
March 7
•
Energy Alternatives
•
PACAB 2018 Goals
March 21
•
Review 2018 Meeting Schedule
•
Review Water/Sewer Tariff
April 4
•
Presentation on Lowell Creek Hydroelectric Potential by Andy Baker,
YourCleanEnergy
App 18
•
PACAB 2018 Goals
•
Review 2018 Meeting Schedule
May 2
•
PACAB 2018 Goals
•
Set 2018 Meeting Schedule
May 15 — End of
HIATUS
August
MEET AS NEEDED
September 5
•
Review US Coast Guard Housing and Utilities
•
Look at Seward Airport workgroup
•
Sewer and Water Utilities update
September 19
•
Field Trip to SMIC — moved to OCTOBER
October 3
•
SMIC operations/review the SMIC plan
•
Sewer and Water Utilities update
October 17
•
•
Tour of SMIC
Vessel Property Tax
November 7
•
Sewer and Water Utilities update
•
Review the SMIC/ARCADIS plan
Review US Coast Guard Housing and Utilities
November 21
December 5
•
Discuss and revise Annual Priorities
•
Sewer and Water Utilities update
December 19
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