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HomeMy WebLinkAboutRES2023-114 Urging Alaska Legislature on Harbor Facility Grant Sponsored OF SEWARD,ALASKA by: Sorensen RESOLUTION 2023-114 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 2025 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$500,000,000; and WHEREAS, the municipalities of Sitka and Juneau have committed to contribute half of their project cost in local match funding for FY2025 towards 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 fifteen 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 City Manager be directed to urge the Alaska Legislature and Governor to fully fund the Harbor Facility Matching Grant Program in the amount of$7,644,677 in the FY2025 State Capital Budget in order to ensure enhanced safety and economic prosperity among Alaskan coastal communities. Section 2. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th day of October 2023. CITY OF SEWARD, ALASKA RESOLUTION 2023-114 111 THE CITY OF SEWARD, ALASKA at/MA.'011,,pc— Sue McClure, Mayor AYES: Barnwell, Finch, Wells, Calhoon, Osenga, McClure NOES: None ABSENT: DeMoss ABSTAIN: None ATTEST: Jod' Kurtz Acting City Clerk ,ot i l hilt,,,* • F SFk•.•. ( ,otP9,p • - ......) . ''•.� PS.•'� ''' OF A1-l•.tilitio�• City Council Agenda Statement Meeting Date: October 9, 2023 To: City Council Through: Kat Sorenson, City Manager From: Norm Regis, Harbormaster Subject: Resolution 2023-114: Urging the Alaska Legislature and Governor to fully fund the municipal Harbor Facility Grant Program in the FY 2025 State Capital Budget. Background and 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 $500,000,000. For FY 2025 many municipalities have grant applications pending with a total cost to the state of $7,644,677. The grant program has only been fully funded twice. The grant program is the City's best means to replace its docks and keep customer rate increases to a minimum, with renewing our support to keep this grant funded each year would benefit other communities and the City of Seward for future harbor improvements. DOT Grant Program: The Municipal Harbor Facility Grant Program is managed by DOT&PF. The program provides 50/50 matching funds to eligible applicants. The program was created in 2006 but was not funded until 2007. The legislature supplied funding in subsequent years(but not in 2009). The money can only be used for construction-ready projects,not for planning or engineering. This grant program is funded on an annual basis at the discretion of the Alaska Legislature and consists of two tiers, Tier I and II. With State revenues projected to decline over the next few years, funding for the municipal Harbor Facility Grant Program will be a bigger challenge for the Legislature. 50 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.5.1 Maintain a thriving port of Seward through harbor improvements, infrastructure expansion, and implementation of management plans. Strategic Plan: Complete the renovation of the Seward Boat Harbor Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted X Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance $ Finance Director Signature: Attorney Review Yes Attorney Signature: X Not applicable Comments: Administration Recommendation XeAdopt AM Other: 51