HomeMy WebLinkAboutRes2011-020 Sponsored by: Oates
him CITY OF SEWARD, ALASKA
RESOLUTION 2011 -020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING THE RELOCATION OF THE COASTAL
VILLAGES REGION FUND FISHING FLEET FROM SEATTLE TO A NEW
HOME -PORT AT SEWARD, ALASKA
WHEREAS, the State of Alaska worked tirelessly within the framework of the Magnuson -
Stevens Fishery Conservation and Management Act to transition from a federal fishery dominated by
foreign fishing vessels to a fishery fully utilized by Americans; and
WHEREAS, the State of Alaska worked in partnership with the Alaska Congressional
Delegation in the 1990s to promote the Community Development Quota (CDQ) initiative in the
Bering Sea that provided residents of the villages ringing the Bering Sea fisheries a stake in the
fishing industry; and
WHEREAS, many past leaders of Alaska have had a long- standing goal of Alaskanizing
ownership of the fishing fleets serving the CDQ Groups and home porting those fleets in Alaska;
and
Lim WHEREAS, the Coastal Villages Region Fund, one of six CDQ Groups and the largest
Alaskan owned and Alaska based Seafood Company in Alaska's 100 year history of commercial
fisheries, has 100% sole ownership of its fishing fleet, or ownership in partnership with another
CDG Group; and
WHEREAS, Coastal Villages Region Fund is projected to have $75 million in seafood sales
in 2011; and
WHEREAS, the Coastal Villages Region Fund has become so big and successful that it
costs $2 million to fill up the fuel tanks of their fishing fleet one time; they spend approximately $20
million annually in Seattle for moorage, vendor support, and maintenance; and they spend
approximately $2 million per year to fly crews to and from Alaska and Seattle; and
WHEREAS, this is money that could be spent in Alaska, not in Seattle; and
WHEREAS, the legislation establishing the CDQ Groups requires their earnings to be
reinvested in the Bering Sea area, thus necessitating other ownership of their supporting
infrastructure outside the Bering Sea area; and
WHEREAS, there are no locations within the Bering Sea area that meet the home porting
requirements of the large fishing and processing vessels owned by Coastal Villages Region Fund;
,.. and
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -020
WHEREAS, the Coastal Villages Region Fund desires to relocate its home port from Seattle
to a port in Alaska that has the following characteristics: (1) year -round ice -free deep water port; (2)
road, rail, and air access; (3) available space on the water and upland for development; (4) major ship
repair capabilities; and (5) maritime training and licensing; and
WHEREAS, after a statewide review the Coastal Villages Region Fund has determined that
the City of Seward is the only community in Alaska that meets all their requirements; and
WHEREAS, the President and Board of Directors of the Coastal Villages Region Fund have
proposed that Seward become the homeport for its growing fishing and processing fleet; and
WHEREAS, Coastal Villages Region Fund requires half a mile of dock space to park their
fishing vessels; 20,000 square feet of warehouse; 5,000 square feet of office space; and 5 to 10 acres
of fenced yard for equipment and staging; and
WHEREAS, the movement of the Coastal Villages Region Fund to Alaska will encourage
and facilitate the movement of the remaining 5 CDQ Groups to Alaska; and
WHEREAS, the home porting of the largest CDQ Group in Seward will begin the transition
eri of hiring Alaskans vendors to repair propellers and vessels, weld and paint, service electronics, mend
fishing gear, repair diesel engines, supply packaging, provide fuel and groceries, and provide marine
safety training; and
WHEREAS, with the relocation of the home port to Seward the dollars earned by Coastal
Villages Region Fund in the Bering Sea fisheries will thus ripple through the greater Alaskan
economy; and
WHEREAS, the Alaska District of the United States Army Corps of Engineers has found
that the relocation of the Coastal Villages Region Fund fishing fleet to Seward is economic; and
WHEREAS, the infrastructure for home porting the Coastal Villages Region Fund fishing
fleet in Seward will build upon some $70 million in existing infrastructure at the Seward Marine
Industrial Center (SMIC) that was built in the 1980s; and
WHEREAS, the City of Seward has paid for the initial engineering analysis to home port the
Coastal Villages Region Fund in Seward; and
WHEREAS, $400 thousand has been requested in the FY2012State of Alaska Capital
Budget to complete the economic analysis, engineering design, and geotechnical report and
preparation of permit documents for home porting the Coastal Villages Region Fund; and
WHEREAS, construction of the infrastructure to support home porting Coastal Villages
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -020
Region Fund in Seward could be completed by December 15, 2014; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City of Seward is fully supportive of moving the home port of the Coastal
Villages Region Fund fishing fleet from Seattle to Alaska.
Section 2. By working together with public and private partners we will begin to accomplish
the historic opportunity of Alaskanizing the Bering Sea fishing fleet.
Section 3. The existing infrastructure at the Seward Marine Industrial Center (SMIC)
provides a foundation for economically constructing the on -water and upland infrastructure that is
necessary to home port the Coastal Villages Region Fund in Seward, Alaska.
Section 4. The initiative to construct the home port facilities for Coastal Villages Region
Fund at the Seward Marine Industrial Area (SMIC) of Seward is fully consistent with provisions in
the Seward City Code, City Charter, Comprehensive Plan, Strategic Plan, and Land -Use Plans.
Section 5. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29 day of
March, 2011.
THE CITY OF SEWARD, ALASKA
J an Bardarson, Vice Mayor
AYES: Valdatta, Shafer, Casagranda, Bardarson
NOES: None
ABSENT: Smith, Keil, Dunham
ABSTAIN: None
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -020
ATTEST:
Jo anna Kinn7CMC
• ty Clerk
(City Seal)
o OF sal
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Council Agenda Statement
Meeting Date: March 29, 2011
of SEk
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To: City Council u ( ,
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From: Phillip Oates, City Manager gtgsKP
Agenda Item: Relocation of the Coastal Villages Region Fund
fishing fleet from Seattle to a new home -port at
Seward, Alaska
BACKGROUND & JUSTIFICATION:
Alaska has been working since Statehood to fully develop its coastal marine resources. In 1976
the Congress expanded sovereign jurisdiction over the conservation and management of fish
stocks to 200 miles. The State of Alaska worked tirelessly within the framework of the
Magnuson- Stevens Fishery Conservation and Management Act to transition from a federal
fishery dominated by foreign fishing vessels to a fishery fully utilized by Americans.
The State of Alaska worked in partnership with the Alaska Congressional Delegation in the
1990s to develop the CDQ program in the Bering Sea. This program provided the residents of
villages ringing the Bering Sea fisheries a stake in the industry. The CDQ community
participation in the fishing industry has taken firm root to include increasing ownership of the
fishing and processing fleets. The next phase is bringing more economic value from this
participation to Alaska by relocating the home ports of the CDQ fishing fleets from Seattle to
Alaska. Since none of the harbors in the Bering Sea area meet the requirements for home porting
the CDQ Groups in Alaska, other Alaskan locations must be found.
After a statewide search, the President and Board of Directors of the Coastal Villages Region
Fund (CVRF), the largest of the six CDQ Groups, have proposed that Seward become the
homeport for its growing fishing and processing fleet. They found that the City of Seward is the
only location in Alaska that meets all CVRF requirements that include a (1) year -round ice -free
deep water port; (2) road, rail, and air access; (3) available space on the water and upland for
development; (4) major ship repair capabilities; and (5) maritime training and licensing through
AVTEC.
The infrastructure for home porting the Coastal Villages Region Fund fishing fleet in Seward
will build upon some $70 million in existing infrastructure at the Seward Marine Industrial
Center (SMIC) that was built in the 1980s. This infrastructure and the advantages of the harbor
and upland areas in Seward will allow successful and profitable re- location of the CVRF fleet
from Seattle to Seward.
The relocation of the largest CDQ Group to Alaska will begin the transition of hiring Alaskan
vendors to repair propellers and vessels, weld and paint, service electronics, mend fishing gear,
repair diesel engines, supply packaging, provide fuel and groceries, and provide marine safety
training. The dollars earned by Coastal Villages in the Bering Sea fisheries will thus ripple
through the greater Alaskan economy. The hurdles to this initiative are the lack of adequate dock
space and uplands in an Alaskan port community, on the road system, to handle the substantial
J
needs of this growing enterprise.
In a preliminary study, the United States Army Corps of Engineers has already found that the
project is economic. Now, a comprehensive economic analysis, full engineering design,
geotechnical report, permit documents, and final project cost estimates are needed to move this
project forward. A request to the legislature has been submitted by the City of Seward that $400
thousand be included in the FY 2012 State Capital Budget to accomplish these steps. If full
funding of the project is available at completion of these steps, construction of the project and
movement of the home port of CVRF to Seward could be completed by December 15, 2014.
This initiative may also act as the catalyst for the consideration by other CDQ groups to
homeport in Alaska. Such a move would result in tens of millions of dollars in new annual
income for Alaskan vendors, more revenues for the State of Alaska, and local job creation.
INTENT: (1) Establish a permanent record of the reasons Coastal Villages Region Fund desires to
move the home port of its fishing fleet from Seattle to Seward, Alaska; (2) Document the public
process and support of the City Council for establishing the infrastructure for relocating the Coastal
Villages Region Fund fishing fleet in Seward; (3) Strengthen the efforts to obtain the public and
private support, partners, and funding to accomplish the historic opportunity to begin Alaskanizing
the Bering Sea fishing fleet.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures or Other Plans or Policies:
FISCAL NOTE:
Approved by Finance Department: OW-
ATTORNEY REVIEW: Yes No X
r
RECOMMENDATION: the City Council should unanimously approve Resolution 2011 -O that
establishes full and complete support of relocating the Coastal Villages Region Fund fishing fleet
from Seattle to a new home -port at Seward, Alaska.
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JJ