HomeMy WebLinkAbout02072007 PACAB Packet
SEWARD PORT AND COMMERCE ADVISORY BOARD
Regular Meeting
February 7, 2007
NOON
COUNCIL CHAMBERS
Deborah Altermatt
Chair
Term Expires 2007
1.
CALL TO ORDER
2.
PLEDGE OF ALLEGIANCE
Karl Van Buskirk
Vice Chair
Term Expires 2007
3.
ROLL CALL
Vacant
Board Member
Term Expires 2009
4.
SPECIAL ORDERS, PRESENTATIONS AND
REPORTS
Darryl Schaefermeyer
Board Member
Term Expires 2009
A. ARRC Representative Louis Bencardino
B. Chamber Director Laura Cloward
Ron Long
Board Member
Term Expires 2008
C. KPBIEDD - City Councilmember Valdatta
Mike Banas
Board Member
Term Expires 2008
D. Board Member Butts- update from the 2007 Tidal Energy
Conference
E. Administrative Report
Theresa Butts
Board Member
Term Expires 2009
5. Citizens' comments on any subject except those items
scheduled for public hearing. [Those who have signed in will be
given the first opportunity to speak. Time is limited to 2 minutes
per speaker and 30 minutes total time for this agenda item.]
Maron Yoder
Interim City Manager
Scott A. Ransom
Harbonnaster
6. Approval of agenda and consent agenda [Approval of
Consent Agenda passes all routine items indicated by asterisk
Christy Terry
Executive Liaison
7. UNFINISHED BUSINESS
A. Project Status List- On-Going... ... ... .. . .... .Page 3
City of Seward, Alaska
February 7, 2007
PACAB Agenda
Page 1
8. NEW BUSINESS-
A. Resolution 2007-01, providing a recommendation to Council to amend
the City of Seward's 2007 Annual Budget by removing the Cargo
Fee... ... ... ... ... .,. ... ... ... ... .., ... .., ... ... ... ... ... ... ... ... ... .......Page 4
B. Discuss Chamber's request for P ACAB to examine policy
recommendations on: event access to public property, limits on
insurance requirements and streamlining the permitting
practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 6
C. Set Andy Baker's Lowell Creek Hydro Proposal as work session topic
for February 17th... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 7
*D. Approve January 3, 2006 Regular Meeting Minutes... ........... ..Page 8
9. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS
(No action required)-
A. Anchorage Daily News articles on Ketchikan-based company's 'E-craft'
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 18
B. Anchorage Daily News articles on Point MacKenzie prison
site.......................................................................... ...................... Page 25
10. BOARD COMMENTS
11. CITIZENS' COMMENTS [5 minutes per individual- Each individual has one
opportunity to speak.]
12. BOARD AND ADMINISTRATION RESPONSE TO CITIZENS'
COMMENT
13 ADJOURNMENT
City of Seward, Alaska
February 7, 2007
P A CAB Agenda
Page 2
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Sponsored by: Board
CITY OF SEWARD, ALASKA
PORT AND COMMERCE ADVISORY BOARD
RESOLUTION 2007-01
RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD,
PROVIDING A RECOMMENDATION TO COUNCIL TO AMEND THE
CITY OF SEWARD'S 2007 ANNUAL BUDGET BY REMOVING THE
CARGO FEE
WHEREAS, there are current on-going negotiations to bring new enterprises and/or uses to
the Alaska Railroad Dock~ and
WHEREAS, to impose a fee in the midst of these discussion could be counter productive~
and
WHEREAS, new enterprises bring additional employment, which brings additional purchases
of utilities and payment of sales taxes to the City~ and
WHEREAS, additional employment also brings coaches, mentors and volunteers into the
Community~ and
WHEREAS, growth in Seward's economy benefits everyone~ and
WHEREAS, government and nonprofit institutions mitigate impacts to infrastructure in a
variety of ways~ and
WHEREAS, government and nonprofit institutions provide enormous economic and quality
of life impacts to the Community~ and
WHEREAS, the City of Seward should look for economic incentives to get more business
into Seward rather then enact potential disincentives.
NOW, THEREFORE, BE IT RESOLVED by the Seward Port and Commerce Advisory
Board that:
Section 1. The Board recommends Council amend the City of Seward's 2007 Budget by
removing the Cargo Fee.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the Port and Commerce Advisory Board this 7th day of
February 2007.
y
MEMORANDUM
Date:
February 7, 2007
To:
Port and Commerce Advisory Board
Through:
Scott Ransom, Harbor Master
From:
Christy Terry, Executive Liaison
Subject:
Resolution 2007-01, providing a recommendation to Council to amend the City of
Seward's 2007 Annual Budget by removing the Cargo Fee
At the January 3,2007 Port and Commerce Advisory Board Regular Meeting the Board directed
Administration to bring forward a Resolution compiled of the Board's recommendations
regarding the Cargo Fee.
The Board will observe the Resolution is written using a positive motion rather then being
written in a negative form against the Cargo Fee. In order to simplify the process, Robert's
Rules advocates using positive words to express a negative motion. Otherwise, members will
need to vote "yes" on an issue that they disagree with, and this becomes very confusing. The
Resolution is not written in support of the Cargo Fee because, although it's not a violation of
Robert's Rules to do so, motions should be phrased in such a way that the maker of the motion
agrees with them. This is important since the member who makes the motion is restricted from
speaking against his or her motion during debate (although that person can vote against the
motion).
RECOMMENDATION:
If the Board wishes to take action on this item, a motion is in order:
"I move to approve Resolution 2007-01."
5
Seward~com
1{.a.s't..l, ~n ...r.s ~~...~.
~
Seward Chamber of Commer~e
Conference and Visitors Bureau
I
December 20, 2006
Port and Commerce Advisory Board
City of Seward, Alaska
Dear Chair Altermatt and P ACAB Members,
On behalf of the Chamber Marketing Committee, I would like to ask for your assistance,
Recent discussions at our Committee meetings, as well as discussion~ held by the Wednesday morning
group, have broached the concept of encouraging broad community e~ents, or themed weekends,
throughout the year. These events, when built into an overall economic development strategy, can
enhance Seward's year-round economy by focusing attention on alterjoative, off-season activities. Such
events add more diversity to our economic base - supplementing mmjine industry, fisheries, education,
and seasonal tourism with weekends intended to highlight Seward to other Alaskans and encourage
participation by locals.
The Chamber has attempted to launch these kinds of events, and whi~e July 4th is very successful, much of
that success is tied to our Mount Marathon Race™ component, rathet than our ability to create a unique
weekend experience. Of our other attempts, the Winter Ice Festival i~ the most recent example of an
event weekend that is no longer held due to a lack of community support, Even our attempts to grow the
Holiday Train Weekend into a larger economic opportunity for the c~mmunity have met with local
resistance. Our efforts have highlighted the fact that to be successful~ a broad community event must be
community driven, with private enterprise leading the effort. Most $portantly, though, any collaborative
efforts must be backed by strong supporting policies from the Chamber and City.
I would like to request that from a policy direction, P ACAB assist private enterprise in developing off-
season weekend events by recommending City policies or code chan~es as necessary to encourage and
assist the growth of these events. Examples include access to public tproperty for such events, limits on
insurance requirements, and streamlined permitting practices. With l>ACAB's policy recommendations,
we hope that City Council will recognize their ability to foster event wowth in Seward, which will
encourage increased off-season spending and help grow the public ~les and bed tax revenue.
In an era where public budgets are more and more of a challenge an~ private enterprise feels the pressure
of a seasonal economy, we have the ability to improve our situation iIf we simply adopt policies and
community practices that encourage the entrepreneurial efforts whic~ ultimately benefit us all.
Thank you for your consideration,
~,L~
Laura Cloward
(0
PO Box 749, Seward, Alaska 99664
907-224-8051
chamber@seward.net
MEMORANDUM
Date:
February 7, 2007
r~~s~~
~ ~~~'\
-~
~...
~iAS\4Y;
To:
Port and Commerce Advisory Board
Through:
Scott Ransom, Harbor Master
From:
Christy Terry, Executive Liaison
Subject:
February 21, 2007 Work Session
Mr. Andy Baker, Y ourCleanEnergy, LLC, has requested permission to present a follow-up
proposal to the Port and Commerce Advisory Board on February 21, 2007 beginning at noon.
He is interested in presenting a 30-40 minute power point presentation followed by a 30-20
minute question and answer session.
RECOMMENDATION:
If the Board wishes to take action on this item, a motion is in order:
"I move to set PACAB's February 21, 2007 Regular Work Session topic as, Andy Baker -
Lowell Creek Hydro Project Proposal."
7
City of Seward, Alaska
January 3, 2007
Port ~nd Commerce Advisory Board Minutes
i Volume 3, Page 230
CALL TO ORDER
The regular January 3, 2006 meeting of the Seward Port and Commerce Advisory Board was
called to order at 12:07 pm by Board Member Long.
PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Board Member Schaefermeyer.
There were present:
Karl Van Buskirk (arrived 12:15), presiding, and
Mike Banas Theresa Butts
Ron Long Darryl Schaefermeyer
Absent:
Deborah Altermatt
Bruce Martin
Comprising a quorum of the Board; and
Louis Bencardino, Alaska Railroad Corporation Representative
Scott Ransom, Harbor Master
Christy Terry, Executive Liaison
Alaska Railroad Corporation (ARRC) Representative Louis Bencardino
Bencardino updated the Board on the meeting held between ARRC, Hyundai and Usibelli
Coal Mine Inc. He stated the first day of the meeting involved the long term employees and their
discussion of equipment and concerns. Bencardino stated the second day of meeting involved the
entire group. He shared with the Board that Usibelli planned for employee jobs and benefits to
remain the same. Bencardino stated he was currently working with Hyundai to obtain information on
maintenance and operations in order to provide continuity with the transfer to U sibelli. He stated
ARRC was moving forward with obtaining permits for the expansion of their freight dock.
Bencardino explained the development aspects of the new dock. He stated Mayor Shafer was
scheduled to meet with Tote Inc. while she was in Seattle. Bencardino approved of Seward's
encouragement for companies to move their operations into Seward. He shared the Chamber of
Commerce's Economic Development group had discussed ways to increase winter activities.
Bencardino explained the concept to allow snowmobile enthusiasts to park their vehicles and trailers
in the City's north parking lot and ride out oftown on the bike trails to snowmobiling locations. He
noted this would encourage more tourists to spend money on food, gas and lodging in the City.
Bencardino stated another idea involved having the first day of the Salmon Derby as 'women only. '
The Economic Development group thought this would encourage whole families to come for the
Derby and provide additional bed tax.
Long thanked Bencardino for the update. He disclosed to the Board that Agrium's Blue Sky
Project would not pursue the Chulitna Field, but would use Usibelli coal. Long shared that Agrium's
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City a/Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 23 1
initial plan was to rail the coal through Anchorage to the plant, but stressed the need for Seward to
demonstrate it would be more economical to rail the coal to Seward and barge the coal around the
comer.
Bencardino stated he was talking with someone from Kenai about barges loaded with cOal.
He revealed that in the course oftheir discussion the plant was mentioned. Bencardino informed the
individual that made the inquiry that there would be no problem with the concept.
Long noted ifUsibelli was now the supplier and the operator, then moving the coal through
Seward was more economically feasible. He discussed the additional overall benefits of the project.
Bencardino agreed, noting if the coal was moved through Anchorage a whole new facility
would need to be built, they would have to fight Anchorage tides and deal with additional logistical
problems in the winter.
In response to Schaefermeyer, Long stated 2 million metric tons of coal per year was
estimated for the project.
Bencardino stated ARRC would be able to increase train traffic and keep local employees
working.
Van Buskirk requested a presentation from Agrium in February.
Long stated ARRC was holding a Community Outreach Meeting next week.
Bencardino stated the Seward Starts Here Sports and Recreation Show would be held in
conjunction with the Polar Bear Jump on January 19th and 20th at the Railroad terminal.
In response to Schaefermeyer, Bencardino stated the roll-on/roll-offT ote ship would dock in
Seward approximately every week or week and a half He stated the cargo would go by rail and
barge out of Seward. Bencardino stated more marine activity had occurred in Seward. In further
response to Schaefermeyer, Bencardino stated the longshoremen would have additional work.
Long stated Seward had not fully obtained the Tote ship.
Bencardino agreed and stated the cargo fee discussion could jeopardize the project.
Kenai Peninsula Borough Economic Development District (KPB/EDD) - City Councilmember
Bob Valdatta (Council Member Willard Dunham spoke in Valdatta's place.)
Dunham stated his interest in the snowmobile concept Bencardino outlined. Dunham
discussed possible destinations and code revisions. He agreed that Seward was the logical location to
move coal through. Dunham suggested PACAB invite Usibelli to Seward to talk about the project.
He stated the next Council Agenda would include discussion about sending a representative to the
Tidal Energy Conference in Ketchikan. Dunham stated this was an important issue for Seward. He
q
City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 232
stated the peninsula had the capability to produce 160 Megawatts more then we could deliver.
Dunham noted the Clerk was making copies of a Seattle Time's article about the problem's Seattle is
having with the Cruise Industry.
Administrative Report
Harbormaster Scott Ransom reported on the following items:
. Introduced new Interim City Manager Marvin Yoder.
. Constructional start on the South Harbor would begin on January 8th; this included
possible dirt work depending on ground conditions.
. The South Harbor Restroom bids would be opened next week and would be on
Council's January 2200 Agenda for approval.
. There was Exxon Valdez EVOS money available and the Harbor Department would
submit project requests, these included a project involving water quality evaluation.
Interim City Manager Marvin Yoder noted there was a Council Work Session scheduled for
January 8th at 6:30 pm to discuss A VTEC's request to lease or purchase property in SMIC for their
fire training center. Yoder stressed the importance of the Board's review of the SMIC Development
Plan as a tool to alleviate the expenses surrounding SMIC.
Citizens' comments on any subject except those items scheduled for public hearing. [Those
who have signed in will be given the first opportunity to speak. Time is limited to 2 minutes per
speaker and 30 minutes total time for this agenda item.] - None.
Approval of agenda and consent agenda
Motion (LonglBanas)
Approve the Agenda
Butts added under New Business E., "Discussion for participation in the 2007 Tidal Energy
Conference in Ketchikan."
Motion Passed as Amended
Unanimous
The following items were approved under the Consent Agenda:
December 6, 2006 Regular Meeting Minutes were approved.
Goals and Priorities - On-Going
Butts suggested P ACAB decide how the list should be handled.
Schaefermeyer stated there were inappropriate items on the list. He advocated identifying two
or three priorities to advance and follow their progress. Schaefermeyer suggested keeping the list,
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City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 233
but as a Board, identifY the top three priorities. He stated that meeting once per month the Board
could not do justice to a long list of projects.
Long stated most of the items on the list were broad with dozens of subtopics. He suggested
utilizing the list as a status report rather then a project list. Long stated that the list before the Board
did not necessitate Board action on each item. He stated the items on the list should be kept on the
list for tracking purposes, but should be addressed as needed. Long suggested the list should be
titled: 'status list.'
Van Buskirk noted he was able to move a number of items to the long term section. He
reiterated the items on the list were definitely items of interest, but were not all action items.
Long asserted the Board did not need to address the list at each meeting. He noted the list
needed to exist to keep the Board aware of the items.
Schaefermeyer agreed the Board needed to be kept current on how the items were
progressing. He used Fish Restoration as an important example. Schaefermeyer agreed that each
item was important for the Board to monitor.
Van Buskirk summarized the discussion and suggested three items add to the list: ARRC's
expanded freight dock and operations, relationship with Usibelli Coal Mine Inc. and 2007 Tidal
Energy Conference in Ketchikan. He reiterated that the title of the list was a misnomer.
Motion (LonglBanas)
Change the name of the list to 'Project
Status List.'
Butts asked if the list should be used to organize items such as Council Work Sessions and
Board Members responded in the affirmative.
Motion (Van BuskirklButts)
Strike the column titles, 'Current Projects,
Within six months or less, revisit date, long-
term projects, over six months, and revisit
date. '
Motion Passed
Unanimous
Motion Passed
Unanimous
By general consensus the Board added the following items: ARRC Tote Ship, ARRC Coal
Facility and City of Seward Cargo Fee Discussion.
NEW BUSINESS-
Cargo Fee
\ \
City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3. Page 234
Long reminded the Board that they had requested Council allow the Cargo Fee. discussion
broadened. He noted Council had agreed to their request, but clearly excluded fish. Long stated
there were many projects for Seward to lose rather then gain if fees were bluntly implemented. He
specified Tote Inc. could choose Valdez over Seward for their shipping needs because Valdez already
had a roll-on/roll-off dock and it was cheaper to ship goods through Valdez and truck them to the
North Slope then it was to ship goods through Seward, load them on the railroad to Fairbanks and
then truck them from there. Long clarified that if Seward could make an attractive enough deal for
Tote to ship goods through Seward and save money on their shipments going westward, then Seward
would make a more attractive package. He stressed that if a Cargo Fee was created in Seward it
would make Valdez the more attractive port. Long noted earlier in the meeting many positives were
mentioned for Agrium's Kenai Blue Sky coal gasification project moving coal through Seward, and
Long worried a Cargo Fee would add a major negative. He stated there were three high dollar
Agrium Plants in the Kenai Peninsula that paid almost half of all the property taxes in the Borough,
and if those plants were jeopardized by any City within the Borough or the Borough itself, the
ramifications would be Seward could see a rise in their property taxes. Long clarified that making the
coal more expensive, Seward would make the Blue Sky project less feasible.
Van Buskirk stated Agrium also had an impact with the jobs provided in the community.
Long stated the Cargo Fee discussion was raised by some to mitigate impacts to Seward's
infrastructure and there were other ways to recover those costs. He stated a great example to offset
impacts was ARRC's offer, which he hoped was still available, to construct the Mariner's Landing
project. Long stated ARRC was willing to invest around a million dollars to develop that facility and
Long felt this would be equitable mitigation for any impacts created by cargo to Seward's
infrastructure. Long felt there were many other options to mitigate impacts to infrastructure that
wouldn't perpetuate the myth that, "Seward was a hard place to do business."
Schaefermeyer stated it was impossible for Seward to tax itself into prosperity. He compared
the current malaise to Seward's atmosphere in the late 1970's before the oil prosperity years assisted
Seward to turn around its poor economic condition. Schaefermeyer stressed the need for Seward to
pursue more economic opportunities. He noted economic opportunities would not develop if the
myth was perpetuated that it was, "too expensive to live and do business in Seward." Schaefermeyer
cautioned the Council to heed the economic impact of jobs to our community and noted a few jobs in
our small community made a big difference. He sensed a downward economic spiral if Seward didn't
act to provide additional employment through commerce and activity. Schaefermeyer noted ARRC
was working on projects to build the community back and expressed his concern that the Cargo Fee
was a negative factor at a time when the Community could ill afford it. He stated that the notion that
not - for-profits did not pay their way was overblown, and clarified that these organizations employed
many people whose salaries stayed in the community. Schaefermeyer recognized there were valid
economic pressures on Seward's local government, but noted careful consideration needed to be
given to the possible negative ramifications of any tax or fee. He noted the increase to Seward's sales
tax lessened visitors from Anchorage. Schaefermeyer advocated the long term view of keeping
Seward's economy vibrant and alive. He stated Seward continued to benefit from increased growth
in sales tax. Schaefermeyer concurred with Long's comments and seconded the idea that this Cargo
Fee discussion occurred at an inopportune time. He stated PACAB should help Council develop
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City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 235
economic solutions other then what was being proposed. Schaefermeyer stated implementation of the
Cargo Fee would 'kill the goose the laid the golden egg.'
Butts stated these concerns had to be communicated to Council. She suggested in addition to
explaining why PACAB felt the Cargo Feel timing of the Cargo Fee was a bad idea, PACAB or
Administration could quantify the benefits received from the not-for-profit organizations in Seward.
Butts suggested an emphasis be. placed on the positive benefits to the community during the
wintertime. She felt Seward did not have the infrastructure needed during the winter months.
Banas agreed that based on the current projects being developed in Seward, a Cargo Fee
being implemented would 'shoot Seward in the foot.' He felt the issue needed to be tabled for at
least 6 to 8 months.
In response to Van Buskirk, Long stated there was an assumption that for every impact there
had to be an equal and opposite offset. He asserted the correlation was not that direct. Long stated
that some impacts were quality oflife benefits that could not be factored economically. He noted that
each job created brought Little League Coaches, mentors and volunteers into the Community, but
that these benefits were difficult to attach a dollar amount to. Long stated the base assumption for
the Cargo Fee discussion needed to be examined. He clarified distinctions needed to be made
between impacts the community would accept, would not accept or would conditionally accept.
Long felt a discussion based on how the City and the not-for-profit agencies could help each other
needed to first take place, before the City should consider a fee or tax.
Vice Chair Van Buskirk suspended the rules to allow ARRC Representative Louis Bencardino
the opportunity to address the Board.
Bencardino stated ARRC provided many benefits to Seward including free or low cost use of
the Dale Lindsay Railroad Terminal. He noted ARRC paid large electricity and fuel bills for their
facility and also provided gravel to the Harbor when needed. Bencardino stated the Cargo Fee was
being discussed at a bad time.
Long noted the City couldn't first complain that Seward needed to have more industry and
then complain about the impacts to infrastructure.
Van Buskirk noted the City discouraged development by asking for their portion first.
Long stated he would meet next week with ARRC about their community outreach program.
He noted the Holiday Train didn't make money for ARRC initially, but it did benefit local merchants.
Bencardino stated ARRC was also providing marketing that benefited Seward.
VanBuskirk confirmed Bencardino' s statement.
Butts stated Bencardino shared information that illustrated the benefits ARRC provided for
Seward. She surmised ARRC's Public Relations Department might provide Seward with this
,:!;J
City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 236
information highlighted. Butts stated this might also encourage ARRC to develop additional projects
to highlight.
Long stated ARRC produced a quarterly flyer and felt it could be possible for ARRC to
provide information specific to Seward. He stated it was less about the specific dollar needed from
the fee and more about how policies were developed. Long stated the worst policies were developed
when someone had a grudge and also a financial need. He cited the former battle to make the Army
Recreation Camp conform to Planning and Zoning laws. Long clarified how the City approached the
organizations would be crucial and felt any attempts to tax cargo would start a legal battle.
Van Buskirk summarized the consensus of the Board that the perceived emergency of the
City's financial need did not necessitate a need for a tax.
Butts stated that considering the enormous economic and quality of life impact that the
government and nonprofit institutions provide for the City, P ACAB did not want to further burden
them with a fee.
Van Buskirk stated that the benefit of having a weekly Tote ship with additional jobs greatly
out weighted any fee that could possibly kill the deal.
Long state there wasn't a time restriction and requested Administration provide bullet points
in a resolution to discuss at the next Port and Commerce Advisory Board meeting.
VanBuskirk reiterated that rumors had a crippling effect on economies.
Set Seward Marine Industrial Center Development Plan Update as Work Session topic for
January 17,2006
By general consensus, the Port and Commerce Advisory Board set the Seward marine
Industrial Center Development Plan Update as the Work Session topic for January 17, 2006.
Long requested copies of the Development Plan be distributed prior to the meeting.
Schaefermeyer noted he had a possible conflict with the date.
Long suggested Members provide written comments if they were unable to be in attendance.
Discuss Annual Report to Council
Long expressed his confidence in Altermatt.
Van Buskirk asked the Board to email Altermatt if they had any comments.
Participation in Alaska' First Tidal Energy Conference in Ketchikan on January 23rd and 24th,
2007.
\l1
City of Seward. Alaska
January 3. 2007
Port and Commerce Advisory Board Minutes
Volume 3. Page 237
Butts placed this on the agenda because she felt the conference would be extremely valuable
for Seward's ability to move forward with their examination of alternative energy sources. She stated
she wanted to attend the Conference if the City felt it would be beneficial, and advocated for her
attendance noting she was very thorough.
In response to Schaefermeyer, Butts noted Chris Sauer of Ocean Renewable Power Company,
LLC (ORPC) was not on the draft agenda. She stated she would contact Mr. Sauer to insure he was
aware of the conference.
In response to budget inquiries, Ransom noted there was $1,800 in the P ACAB' s travel and
subsistence budget. Ransom clarified that this amount was based on sending one Board Member to
Fish Expo and trips to Anchorage to attend the World Trade Center luncheon.
Butts noted that the City Council at their next Regular Meeting would be discussing sending
someone. She suggested encouraging the City to send someone out of the Council budget instead of
using P ACAB' s travel fund.
Banas stated that regardless of where the funds were obtained, it would be beneficial for the
City to send a representative.
Motion (Schaefermeyer/Banas)
Authorize Board Member Butts to attend
Alaska's First Tidal Energy Conference as
the Port and Commerce Advisory Board
representative.
Butts clarified she was somewhat unwilling to use a majority of P ACAB' s travel funds and
suggested waiting till Council addressed the item. She thanked the Board for their willingness to spend
their travel budget on this important item.
Long clarified with Ransom that $1800 was designated specifically to P ACAB for Travel and
Subsistence.
Yoder stated the financial details could be finalized after the issue was addressed by Council and
stated P ACAB' s recommendation would be provided to them.
Motion Passed
Unanimous
CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required)-
ARRC- Army Corps of Engineers Application of Permit (dock extension)
VanBuskirk noted the improved infrastructure.
City Council Fire Training Center Work Session Notice
--
\ \-"
; .....,I
City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minutes
Volume 3, Page 238
Board Members noted this was scheduled prior to the Council Meeting.
Japanese Creek Floodplain Letter from Floodplain Management Program Coordinator Christy
Miller
Long stated that subsequent to this letter a joint Work Session was held between the Seward
Bear Creek Flood Service Area Board and the Seward Planning and Zoning Commission. He noted
the bodies were working on Floodplain permitting issues and together had good forward motion.
In response to VanBuskirk, Long noted the issues outlined by Christy Miller were being
addressed by the two bodies.
BOARD COMMENTS -
Butts supported Bencardino's suggestion about snowmobilers parking inside the City and
traveling via the bike path out of town, but she stated the concept presented some hazards and
dangers that needed to be mitigated.
In response to Schaefermeyer, VanBuskirk stated it was against the law to operate a motor
vehicle on a bike path.
Schaefermeyer and Butts observed that within City Limits the bike trails were groomed.
Long stated the side of the Highway without the bike trail could be used.
Butts noted the individuals not obeying safety rules would be the individuals causing
problems. She stated those individuals needed to be managed.
Long referred to Chamber Director Laura Cloward's request to PACAB to address City
Insurance Requirements. He was reluctant to add this item to the status list, but noted he would bring
this issue up at a future meeting.
Schaefermeyer stated he wanted the Chamber Director to provide further clarification on the
Chamber's request.
Long stated he would be willing to help clarify the request. He stated there was continuing
discussion at last night's Assembly meeting regarding the implementation date of the 'per person per
date tax' on Recreational Sales. Long stated he was 'conflicted out' of the issue, but the Assembly
changed the implementation date to April 1, 2007. He noted the need for further discussion on how
recreational sales were defined.
Van Buskirk stated that when he lived at Mile 5 he witnessed first hand the danger of
snowmobilers on the Seward Highway. He noted the bike path was a boon to the Community for
bikers and cross county skiers. Van Buskirk spoke against allowing motor vehicles on the bike paths
)0
City of Seward, Alaska
January 3, 2007
Port and Commerce Advisory Board Minules
Volume 3, Page 239
that were not designed for that use. He stated this idea was inviting a huge disaster, but supported
the establishment of a private lot for snowmobile parking or a private ferrying system to allow the
snowmobilers to access Lost Lake or Exit Glacier. Van Buskirk supported the comments made
earlier in the meeting that Seward could not 'tax itself into prosperity' and that Seward neede<;i to
bring industry into the Community to obtain the secondary benefits provided. He stated industrial
expansion should not be stifled by only viewing industry benefits as an increase to the tax base.
CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to
speak.] None.
Bencardino appreciated the Board's deliberations on the Cargo Fee and advocated Tote Inc.' s
moving freight through Seward.
BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS- None.
Adjournment
Meeting adjourned at 1 :53 pm.
Christy Terry
Executive Liaison
Karl Van Buskirk
Vice Chair
(City Seal)
\l
adn.com I money: Make it fancy, like ship itself
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Anchorage Daily News
Make it fancy, like ship itself
E-CRAFT: Knik Arm ferry will be built using new and adapted processes.
By SCOTT BOWLEN
Ketchikan Da'
published: January 17, 2007)
KETCHIKAN -- Alaska Ship & Drydock is getting ready to start construction of a unique ship next
month.
The Ketchikan-based company has been developing and testing new, cutting-edge manufacturing
processes and equipment for the project, according to ASD representatives.
"How we're going to fabricate this ship represents advanced manufacturing capacity that's being
built in Ketchikan as a result of having the 'E-craft,' " ASD project manager Doug Ward told a
Ketchikan Chamber of Commerce luncheon audience recently.
The E-craft -- now officially named the MV Susitna -- is an experimental prototype being
constructed on behalf of the U.S. Office of Naval Research. ONR will be testing the design's
capabilities for high-speed, high-capacity operations in nearly all sea states, including shallow
water.
The 195-foot catamaran-style ship will have a movable center deck that can be raised and lowered
depending on the ship's load and on sea conditions. The ship will be able to operate in three
modes: high-speed catamaran; a "small-water-area-twin-hull" mode for heavy loads, medium
speeds and good seakeeping; and a monohull mode for shallow water operations and beach
landings.
In addition to being the first-ever ship to have a movable center section, the Susitna will be the
world's first catamaran with ice-breaking capabilities, said Alan Coffin, ASD's Susitna project
manager.
"There's not another ship in the world, commercial or military, that does the same things as this
one," Ward said.
Although the Susitna's design is being tested for military applications, this specific ship will be used
as a ferry by the Matanuska-Susitna Borough, mostly across a 2.6-mile stretch of Knik Arm
between Anchorage and Point MacKenzie.
The E-craft concept was developed by Lockheed Martin. The final design is being done by the
Seattle-based naval architecture firm of Guido Perla & Associates.
Since the formal keel-laying ceremony in August, ASD has been busy developing its manufacturing
processes for the Susitna project -- and installing and adapting some innovative new equipment at
the state-owned shipyard.
"We're automating'as much as we can," Coffin said. "It's new technology for the shipyard. It's good
for the workers in the long term. ... A little bit better working conditions, a little bit better
\~
http://www.adn.com/money lv-printer/story /8568707p-8462289c.html
1/17/2007
adn.com I money: Make it fancy, like ship itself
t'age L or j
equipment to work with."
Basically, ASD will be building a series of approximately 36-foot, 1S-ton individual modules that
later will be connected to form the vessel's hull.
ASD's new gear for building the modules includes a table with 14 hydraulic cylinders capable of
bending and holding the steel components of a module panel in place for welding.
The usual way of building a panel would be to bend each piece to be used for the panel separately
before welding, said Ward.
"(But) in this case, we're holding all the pieces together at one time and then using the hydraulics
to force the curvature into the panel and then welding though on that," Ward said. "So that's
automating a lot of the labor that would normally be associated with building curved panels."
Some of the welding will be automated as well. A new dual-head welding machine will be able to
weld a 20-foot beam in about five minutes, Coffin said.
"You just turn it loose and tell it where you want it to weld, and it can weld both sides (of the
beam) at one time," Coffin said.
Each module will take shape on a massive "mandrel assembly."
This apparatus has a 40-foot positioner arm extending hOrizontally from a machine that can rotate
the module-laden arm.
"We'll be able to rotate the module around so it's in the best position for the workers, both for the
quality and for the workers' ergonomics," Coffin said.
Some of the new equipment is unique to the shipyard, and shipyard staff have modified some
pieces for specific tasks and greater efficiency.
"It's nice to have people at the shipyard here that are innovative," Coffin said. "In a small
community like Ketchikan, you need to be innovative. You can't just run down to the store and buy
a new welding machine."
He praised the skill levels of ASD's workforce, which, he said, is all local at this time.
"We're doing a lot of things here that are considered leading-edge technology," Coffin said. "The
knowledge base we have here in Ketchikan is good. Surprisingly good."
Ward said ASD has averaged about 100 employees during the past two years and anticipates
holding steady at between 80 and 120 workers for the next two years.
As skilled as it is, ASD's workforce is not "entirely qualified" for the Susitna project yet.
ASD is developing a new work-description process that will result in a workforce education program
for training current and new workers, according to Ward.
"We're analyzing how we do the work and what the key tasks are," Ward said, adding that the
information will be used to develop "education modules" for worker training.
"We're developing Ketchikan-specific career paths for specific work descriptions we're developing
/9
http://www.adn.com/money lv-printer/story /8568707p-8462289c.html
1/17/2007
adn.com I money: Make it fancy, like ship itself
Page:'; ot:.;
right now," he said.
ASD will announce more details of the worker education program within the next few months, he
said.
"It will be as innovative as the E-craft," he said.
The Susitna project and workforce development aren't the only major tasks facing ASD. The
company also is maintaining its ship repair and maintenance business at the shipyard, which is
undergoing the start of approximately $50 million in capital improvements.
Ward briefly addressed the complexity of juggling the various tasks.
"Our challenge is to build an innovative ship using innovative production processes in a shipyard
that isn't built yet," Ward told the chamber of commerce audience. "By the way, also we don't have
an entirely qualified workforce yet. So not only are we building a shipyard, but we're building a
workforce at the same time."
Regarding the Susitna, ASD has completed one prototype module to help develop its systems,
methodology and equipment for the project, according to Coffin.
Work on modules for the actual ship is expected to begin in February, he said. The Susitna project,
which will include a significant number of sea trials locally, is anticipated to be complete in late
2008.
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1/17/2007
adn.com I alasKa WIfe: New Stllp to De cranea In J\..etCnIKan
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New ship to be crafted in
Ketchikan
By S .
p
,- j' Daily News
Published: January 12, 2007
Last f"lodified: January 12, 2007 at 11:06 PM
KETCHIKAN, Alaska (AP) - Alaska Ship &
Drydock is getting ready to start construction of
a unique ship next month.
The Ketchikan-based company has been
developing and testing new, cutting-edge
manufacturing processes and equipment for the
project, according to ASD representatives,
"How we're going to fabricate this ship represents
advanced manufacturing capacity that's being
built in Ketchikan as a result of having the 'E-
craft,'" ASD Project Manager Doug Ward told a
Ketchikan Chamber of Commerce luncheon
audience Wednesday.
The E-craft - now officially named the MV Susitna
- is an experimental prototype being constructed
on behalf of the U.S, Office of Naval Research.
ONR will be testing the design's capabilities for
high-speed, high-capacity operations in nearly all
sea states, including shallow water.
The 195-foot, catamaran-style ship will have a
movable center deck that can be raised and
lowered depending on the ship's load and sea
conditions. The ship will be able to operate in
three modes: high-speed catamaran; a "small-
water-area-twin-hull" mode for heavy loads,
more
Kodiak Tanner crab quota lower
Legislature convenes 2007 session
Rural dental training program opens in JJ
Unalaska shelves wind power research
More alaska wire stories
leed Alasll.. 8fQ4
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~\
http://www.adn.com/news/alaska/ap _ alaska/story/8558190p-8451712c.html
1/16/2007
adn.com I alaska WIfe: New shIp to be craned In KetchlKan
medium speeds and good seakeeping; and a
monohull mode for shallow water operations and
beach landings.
In addition to being the first-ever ship to have a
movable center section, the Susitna will be the
world's first catamaran with ice-breaking
capabilities, said Alan Coffin, ASD's Susitna
project manager.
"There's not another ship in the world,
commercial or military, that does the same things
as this one," Ward said.
Although the Susitna's design is being tested for
military applications, this specific ship will be used
as a ferry by the Matanuska-Susitna Borough,
mostly across a 2.6-mile stretch of Knik Arm
between Anchorage and Fort McKenzie.
The E-craft: concept was developed by Lockheed
Martin. The final design is being done by the
Seattle-based naval architecture firm of Guido
Perla & Associates.
Since the formal keel-laying ceremony in August,
ASD has been busy developing its manufacturing
processes for the Susitna project - and installing
and adapting some innovative new equipment at
the state-owned shipyard.
"We're automating as much as we can," Coffin
said. "It's new technology for the shipyard. It's
good for the workers in the long term. .., A little
bit better working conditions, a little bit better
equipment to work with."
Basically, ASD will be building a series of
approximately 36-foot, 15-ton individual modules
that later will be connected to form the vessel's
hull.
ASD's new gear for building the modules includes
a table with 14 hydraulic cylinders capable of
bending and holding the steel components of a
module panel in place for welding.
The usual way of building a panel would be to
bend each piece to be used for the panel
separately before welding, said Ward.
"(But) in this case, we're holding all the pieces
together at one time and then using the
hydraulics to force the curvature into the panel
and then welding though on that," Ward said. "So
that's automating a lot of the labor that would
normally associated with building curved panels,"
rage ",or If
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adn.com I alaska WIre: New shIp to be cratted In .K.etchlkan
.t'age j or 4
Some of the welding will be automated also, A
new dual-head welding machine will be able to
weld a 20-foot beam in about five minutes, said
Coffin.
"You just turn it loose and tell it where you want
it to weld, and it can weld both sides (of the
beam) at one time," Coffin said.
Each module will take shape on a massive
"mandrel assembly."
This apparatus has a 40-foot positioner arm
extending horizontally from a machine that can
rotate the module-laden arm.
"We'll be able to rotate the module around so it's
in the best position for the workers, both for the
quality and for the workers' ergonomics," Coffin
said,
Some of the new equipment is unique to the
shipyard, and shipyard staff have modified some
pieces or specific tasks and greater efficiency.
"It's nice to have people at the shipyard here that
are innovative," Coffin said. "In a small
community like Ketchikan, you need to be
innovative. You can't just run down to the store
and buy a new welding machine."
He praised the skill levels of ASD's workforce,
which, he said, is all local at this time.
"We're doing a lot things here that are considered
leading edge technology," Coffin said. "The
knowledge base we have here in Ketchikan is
good. Surprisingly good,"
Ward said ASD has averaged about 100
employees during the past two years, and
anticipates holding steady at between 80 and 120
workers for the next two years,
As skilled as it is, ASD's workforce is not "entirely
qualified" for the Susitna project yet.
ASD is developing a new work-description process
that will result in a workforce education program
for training current and new workers, according...
Ward.
"We're analyzing how we do the work and what
the key tasks are," Ward said, adding that the
information will be used to develop "education
modules" for worker training.
"We're developing Ketchikan-specific career paths
?;!J
http://www.adn.com/news/alaska/ap _ alaska/story/855819Op-8451712c.html
1/16/2007
adn.com I alaska wire: New ship to be crafted in Ketchikan
Page 4 of 4
for specific work descriptions we're developing
right now," he said.
ASD will announce more details of the worker
education program within the next few months,
he said.
"It will be as innovative as the E-craft," he said,
The Susitna project and workforce development
aren't the only major tasks facing ASD at the
moment. The company also is maintaining its ship
repair and maintenance business at the shipyard,
which is undergoing the start of approximately
$50 million in capital improvements.
Ward briefly addressed the complexity of juggling
the various tasks Wednesday.
"Our challenge is to build an innovative ship using
innovative production processes in a shipyard that
isn't built yet," Ward told the chamber of
commerce audience, "By the way, also we don't
have an entirely qualified workforce yet. So we
not only are we building a shipyard, but we're
building a workforce at the same time."
Regarding the Susitna, ASD has completed one
prototype module to help develop its systems,
methodology and equipment for the project,
according to Coffin.
Work on modules for the actual ship is expected
to begin in February, he said, The Susitna project,
which will include a significant amount of sea
trials locally, is anticipated to be complete in late
2008.
Information from: Ketchikan Daily News,
http://www.ketchikandailynews.com
~~
http://www.adn.com/news/alaskafap _ alaskafstory/8558190p-8451712c.html
1/16/2007
adn,com I prison: Neighborhood input sought on prison
r~~.l V.l..L.
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Anchorage Daily News
Neighborhood input sought on prison
POINT MACKENZIE: The Assembly has unanimously picked it as the preferred site.
By RINDI WHITE
Anchorage Daily News
(Published: January 20,2007)
WASILLA -- The Matanuska-Susitna Borough Assembly took steps Tuesday to give Point MacKenzie
residents more say in how a prison might fit into the farming community.
The Assembly that night unanimously chose Point MacKenzie as the preferred site for a new state
prison that would house between 1,200 and 2,251 prisoners.
A decision to move the prison further south on a borough parcel might also make the prison an
easier fit in the community and reduce construction costs, borough officials said Wednesday.
Mat-Su community development director Ron Swanson said soil and well data are being gathered
at the Point MacKenzie site. Whether to actually build on that site hinges primarily on finding a
good well, he said.
"We need to make sure it can produce the quality and the quantity that we need," Swanson said.
Project consultants from Anchorage firm RISE Alaska have said a well must produce at least 110
gallons of water for each prisoner daily, or about 250,000 gallons a day. Test well results are
expected to be available by the end of January.
Earlier this month, soil data results moved the prison footprint from a ridge on the 1,350-acre
borough parcel to a spot closer to Point MacKenzie Road. Project consultants from Anchorage firm
RISE Alaska, in e-mail to state and borough officials working on the project, said soil on the ridge
site was too silty and "less than ideal."
The new spot, on the southwest corner of the borough land, was planned as a gravel pit. Material
there was slated for use paving and widening Point MacKenzie Road, a $15.3 million project that
Mat-Su port director Marc Van Dongen said will begin this year.
Borough officials have asked the state to help them find a new gravel source to replace the pit.
Borough officials have scoped out alternate gravel pits, he said, but they want the state to help find
out how much gravel is available.
"We've asked them to go to two other locations of borough land to do some testing," Swanson
said.
The new spot has clear benefits. RISE project manager Don Simmons, in an e-mail, said a shorter
driveway is needed to reach the new location. Gravelly sand at the site means less dirt needs to be
hauled in to create a stable foundation.
All of that saves money, Swanson said. It could save as much as $2 million off the estimated $37.3
million site development cost.
~,s
httn. / /www_adn.com/news/alaska/matsu/prison/v-printer/story /857 5922p-8468998c.html
2/2/2007
adn.com I prison: Neighborhood input sought on pnson
.I. u..c."" ~ v.... ..,
The new site is also farther away from Goose Bay State Game Refuge, a state-managed area north
of the borough property that is frequently used by hunters and is a migration stopover for as many
as 20,000 geese each year.
Building at the gravel pit will also cut by one-third the number of acres that need to be cleared for
construction. The Mat-Su Assembly on Tuesday approved a 230-acre timber sale at the prison site.
It previously considered a 320-acre timber sale, but that number was scaled back when the prison
site was moved to the gravel pit, Swanson said.
The timber sale is an anomaly. A timber sale moratorium is in effect in the Mat-Su Borough,
pending study of available timber stocks and the development of new timber-harvesting rules. The
Assembly unanimously granted this sale specifically for the prison site construction.
Assemblywoman Cindy Bettine on Tuesday gave community input into the construction process
more weight. She set up framework for an advisory committee of community residents and
property owners who will be involved In design, construction and day-to-day operations at the new
correctional center.
"The intent is to let the Point MacKenzie community know that there will be a community group to
represent them," Bettine said.
The Assembly passed Bettine's proposal unanimously but Swanson said borough and state officials
are still working out exactly who will be on the committee and what power It will have. Swanson
and Borough Manager John Duffy said the community group would have input after the prison
design is on the table.
"We have some concepts of the modular design. (Right now), you don't have anything for the
community to work with. You need to have things drawn up on paper," he said.
Swanson said the Assembly's intent to give the community a real voice Is clear, but input from the
group may be limited by time and other constraints.
"In other words, don't just mouth it -- seriously look at those issues and come up with solutions,"
Swanson said. "You always have to look at the financial side to see if we can make it work or not."
Contact Daily News reporter Rindi White at rwhite@adn.com or 352-6709.
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Anchorage Daily News
Point MacKenzie gets vote for prison
DEBATE: At least 400 new jobs for area, YS. worries about impact on hunting.
By RIND! WHITE
Anchorage Daily News
(Published: January 17, 2007)
WASILLA -- The Matanuska-Susitna Borough Assembly unanimously agreed late Tuesday night that
a l,350-acre site on Alsop Road in Point MacKenzie is the best site for a new prison large enough
to house 1,200 to 2,251 male prisoners.
The choice came near the end of a meeting at which more than 140 people turned out to tell the
Assembly where to put -- or not put -- what will be the state's largest prison.
The site is more than 30 miles from the intersection of the Parks and Glenn highways.
Critics say at more than $37 million in site development costs alone, the Point MacKenzie site is the
most costly and may restrict use by both humans and animals of the nearby Goose Bay State
Game Refuge. Those in favor of the prison site have said the facility, which is expected to cost
about $330 million, will bring 400 to 600 new jobs and improve the economy in an area where
growth has been nearly stagnant.
Point MacKenzie will be the final choice only if project contractors determine suitable water and soil
exist at the site. Employees with Anchorage firm RISE Alaska, a contractor evaluating the prison
site, said well data may be available at the end of January.
A site near Sutton would be the backup choice if the Point MacKenzie tests results are bad.
The Mat-Su Assembly also approved a plan to clear-cut 320 acres of timber in preparation for
prison construction. Borough staff said trees will be cut only if well and soil data is suitable.
Public opinion Tuesday night was split over whether the Assembly should build the planned
medium-security facility at Point MacKenzie. Several Point MacKenzie residents and people with
recreational cabins there asked the Assembly to look elsewhere for a site.
"We might not be here in numbers tonight but I don't know one person who's in favor of this site,"
said Joni Brandt.
A handful of larger Point MacKenzie landowners in the area said the prison would bring needed
economic growth to the community.
"This area will flourish and grow, all because of the prison. Some of this growth will happen quickly
and some will be much slower. This is all a reimbursement for the port and the funds that have
already been spent there," said Vicki Trytten, a Point MacKenzie farmer.
Some at the meeting suggested the Mat-Su Assembly should go back to the drawing board.
"Do you guys have the power to say, maybe there's not a good spot for the prison in the borough
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here? Maybe it's not the right time to make the decision, maybe we should back up a little bit,"
Palmer-area resident Pete Houston said.
"I don't want the citizens of the state to be stuck with a big white elephant," said John Stewart,
also from the Palmer area. "I think you don't have a mandate to pick anything."
Assemblyman Bill Allen agreed with Steward and Houston. He asked the Mat-Su Assembly to delay
the project until a more complete economic study could be done to see how building a prison in
rural Point MacKenzie would change that community.
"This is a large project and it's going to be around for a long timeJ' Allen said. "Unless there's a
benefit to the borough ... maybe we should rethink this thing. I like the idea of 400 to 600
nonrecessionary paychecks coming into this borough, but I want to know what the full meal deal
is."
Assemblyman Tom Kluberton said predicting growth patterns in an area such as rural Point
MacKenzie would be a tricky proposition.
"I think it would be very difficult to predict where people are going to live if they work at this
prison," Kluberton said. "I think we should as a body or an entity focus on the known costs. Beyond
that, I believe economic development will take its course, and I doubt if we can predict that with
any great degree of confidence."
Daily News reporter Rindi White can be reached at-\!
6709.
n,co,-n or in Wasilla at 1-907-352-
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