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HomeMy WebLinkAboutRes2019-091 Sponsored by: Meszaros CITY OF SEWARD,ALASKA RESOLUTION 2019-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,URGING THE ALASKA LEGISLATURE AND GOVERNOR TO FULLY FUND THE MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2021 STATE CAPITAL BUDGET WHEREAS, in 1999, the State of Alaska transferred ownership of harbors to the communities; and WHEREAS, it is estimated that the backlog of projects necessary to repair and replace these former State-owned harbors has increased to over$100,000,000; and WHEREAS, the municipalities of the City of Cordova,City and Borough of Sitka,City of Ketchikan,City of Homer,City of Edna Bay,City of Kake,City and Borough of Juneau,and the City of Anchorage have offered to contribute$12,145,312 in local match funding for FY2021 towards eight harbor projects of significant importance locally as required in the Harbor Facility Grant Program; and WHEREAS,for each harbor facility grant application,these municipalities have committed to invest 100%of the design and permitting costs and 50%of the construction cost; and WHEREAS,other communities have supported Seward with resolutions to the state to fund the Facility Grant Program; and WHEREAS,during the last eleven years the Municipal Harbor Facility Grant Program has only been fully funded twice. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council hereby directs the City Manager to urge the Alaska Legislature and Governor to fully fund the Harbor Facility Matching Grant Program in the amount of $12,145,312 in the FY2021 State Capital Budget in order to ensure enhanced safety and economic prosperity among Alaskan coastal communities. Section 2. This resolution shall take effect on January 1, 2020. CITY OF SEWARD, ALASKA RESOLUTION 2019-091 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of October, 2019. THE CITY OF SEWARD, ALASKA Chris erry, Mayor AYES: Osenga, Seese, McClure, Lane, Baclaan, Terry NOES: None ABSENT: Butts ABSTAIN: None ATTEST: Brenda J. Ballou, MC City Clerk (City Se e•••ssa.r..,e , �O. ..nL 4e e� �d I• SEAL ® w w • 'ti�rF OF Pk- ��®o ##a a sc:, .a10.1.. Council Agenda Statement Meeting Date: October 28, 2019 To: Seward City Council Through: Scott Meszaros, City Manager From: Norm Regis, Harbormaster Agenda Item: A resolution urging the State Legislature and Governor to fully fund the Municipal Harbor Facility Grant Program in the FY 2021 State Capital Budget BACKGROUND &JUSTIFICATION: The City of Seward received funding in 2016 from the Harbor Facility Grant program with support from other communities that have not requested funds. The City of Seward would like to support other communities. The grant program was started because the State of Alaska transferred the responsibility for its state owned harbors to local municipalities, but many harbors needed new capital investment. It is currently estimated that the backlog of projects necessary to repair and replace these former State owned harbors has increased to over$100,000,000. For FY 2021 many municipalities have grant applications pending with a total cost to the state of $12,145,312. The grant program has only been fully funded twice. The grant program is the City's best means to replace its docks and keep customer rate increases to a minimum, with renewing our support to keep this grant funded each year would benefit other communities and the City of Seward for future harbor improvements. DOT Grant Program The Municipal Harbor Facility Grant Program is managed by DOT&PF. The program provides 50150 matching funds to eligible applicants. The program was created in 2006, but not funded until 2007. The legislature supplied funding in subsequent years (but not in 2009). The money can only be used for construction ready projects, not for planning or engineering. This grant program is funded on an annual basis at the discretion of the Alaska Legislature and consists of two tiers, Tier I and 11. With State revenues projected to decline over the next few years, funding for the municipal Harbor Facility Grant Program will be a bigger challenge for the Legislature. INTENT: To urge the state legislature and Governor to fully fund the state Municipal Harbor Facility Grant Program in the amount of$12,145,312. 75 CONSISTENCY CHECKLIST: Yes No N/A ._____.. ______W-_W________W-__________W-___________W-_____W-_______W ry ........... 2030 Seward Comprehensive Plan (page 16): Maintain a thriving port 1. of Seward through harbor improvements, infrastructure expansion, X and imp_lementation of mana ement lans. ._________________________9_______P.__________________________________________ _ ..-_______-. .. 2. City of Seward Strategic Plan (page 7): Complete the renovation of X the Seward Boat Harbor 3. Other: X FISCAL NOTE: There is no fiscal note for this Agenda Statement and Resolution; this is to support other communities with the same needs as the Cit ,a, " ° ward. Approved by Finance Department: a ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approve Resolution 2019-091 authorizing the City Administration and lobbyist to urge the state legislature and Governor to fully fund the Harbor Matching Grant program in the amount of $12,145,312. 76 Alaska Association of Harbormasters and Port Administrators, RESOLUTION NO. 2019-1 A RESOLUTION OF'THE ALASKA ASSOCIATION OF HARBORMASTERS, AND PORT ADMINISTRATORS IN SUPPORT OF FULL FUNDING ($12,145,312) FOR THE STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2021 STATE CAPITAL BUDGET. Whereas, the Alaska Association of Harbormasters and Port Administrators recognizes the majority of the public boat harbors in Alaska where constructed by the State during the 1960�s and 1970s; and Whereas, these harbor facilities represent critical transportation links and are the transportation hubs for,waterfront commerce and economic development in Alaskan coastal communities; and Whereas, these harbor facilities are ports of refuge and areas for protection for ocean-going vessels and fishermen throughout the State of Alaska,especially in coastal Alaskan communities; and Whereas, the State of Alaska over the past nearly 30 years has transferred ownership of most of these State-owned harbors, many of which were at or near the end of their service life at the time of transfer, to local municipalities; and Whereas, the municipalities took over this important responsibility even though they knew that these same harbor facilities were in poor condition at the time oftransfer due to the state's failure to keep up with deferred maintenance; and Whereas,consequently, when local municipal harbormasters formulated their annual harbor facility budgets, they inherited a major financial burden that their local municipal governments could not afford; and 77 Whereas, in response to this financial burden,the Governor and the Alaska Legislature passed legislation in 2006, supported by the Alaska Association of Harbormasters and Port Administrators,to create the Municipal Harbor Facility Grant program, AS 29.6,0.800; and Whereas,the Alaska Association of Harbormasters and Port Administrators, is pleased with the Department of Transportation and Public Facilities administrative process to review, score and rank applicants to the Municipal Harbor Facility Grant Program, since state funds may be limited; and Whereas, for each harbor facility grant application,these municipalities have committed to invest 100% of the design and permitting costs and 50%,of the construction cost; and Whereas, the municipalities of the City of Cordova,City and Borough of Sitka, City of Ketchikan, City of Homer, City of Edna Bay, City of Kake, City and Borough of Juneau,and the Municipality of Anchorage have offered to contribute $12,145,312 in local match funding for FY2021 towards seven harbor projects of significant importance locally as required in the Harbor Facility Grant Program; and Whereas,completion of these harbor facility projects is all dependent on the 50%match from the State of Alaska's Municipal Harbor Facility Grant Program; and Whereas, during,the last ten years the Municipal Harbor Facility Grant Program has only been fully funded twice; and Whereas,during the:last ten years the backlog of projects necessary to repair and replace these former State-owned harbors has increased to over$100,000,000. Now therefore be it resolved that the Membership of the Alaska Association of Harbormasters and Port Administrators urges full funding in the amount of$12,145,312 by the Governor and the Alaska Legislature for the State!of Alaska's Municipal Harbor Facility Grant Program in the FY 2021 State Capital Budget in order to ensure enhanced safety and economic prosperity among Alaskan coastal communities. Passed and approved by a duly constituted quorum of the Alaska Association of Harbormasters and Port Administrators on this 3rd day of October,2019. WATTEST• adUchytilrsident Rachel Urd, Executive Secretary 78 ----------------------------------------------------------------------- AAHPA Alaska Association of Harbormasters & Port Administrators 602 Shellfish Ave Homer, AK 99603 Phone: (907)299-9000 July 19, 2019 Dear Governor Dunleavy and Members of the Alaska Legislature, The Alaska Association of Harbormasters and Port Administrators respectfully disagrees with the line-item veto in the Capital Budget of$1.6M for the FY20 Municipal Harbor Matching Grant Program. In February, our Board of Directors met with Governor Dunleavy and many legislators from around the state, and we were encouraged by your support of Alaska's port and harbor infrastructure and your understanding of the 'skin in the game' by municipalities as part of this program. Every state dollar is matched 1:1 with local funds to execute these critical infrastructure upgrades in Alaska's harbors. Five municipalities applied for FY20 Harbor Matching Grant funds, together able to commit$7.4M in local funds for a total of$14M+ in potential capital harbor projects across the state. These projects not only recapitalize critical harbor infrastructure, but they infuse funds into the local economics, engaging the many vendors providing engineering, fabrication, and construction support to make them happen. In the legislature's FY20 Capital budget, $1.6M was re-allocated to the Harbor Matching Grant program from other harbor facility projects completed under the harbor facility grant program in the communities of Nome, Seldovia, and Sitka. The comments for the veto line-item state that, "Funding for projects that are complete should lapse and new capital projects should be established." With all due respect, the AAHPA would remind the Governor and the Legislature that the Harbor Facility Grant program does exactly that - it establishes needed capital projects for harbor facilities across the state that meet a multitude of strict guidelines, are competitively scored by ADOT, and that have 1:1 funding support from the community. We strongly believe that funding should be responsibly re-allocated back to the Harbor Facility Grant program to fund the highest scoring project(s) for FY20 through the State's established and very effective system. The AAHPA Board of Directors and I are always at your service to provide assistance and insight into the infrastructure needs of Alaska's ports and harbors, and their impact and importance statewide. Sincerely, Carl U?hyt'il,'rP President Alaska Association of Harbormasters & Port Administrators 79