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FY2023-21 Identifying Federal Project And Program Priorities For Federal Fiscal Year 2024r L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2023-21 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING FEDERAL PROJECT AND PROGRAM PRIORITIES FOR FEDERAL FISCAL YEAR 2024 WHEREAS, the Alaska Congressional Delegation has requested the views of the Kodiak Island Borough on which Federal projects and programs should be considered priorities, in no particular order, for rural Alaskan communities and their residents. NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: The Borough submits the following FY 2024 community project/Congressionally directed spending requests, consistent with guidance issued by the House and Senate Appropriations Committees. 1. Kodiak Island Hospital Addition $54,390,000 The oldest wing of the Kodiak Island Borough owned hospital facility has been assessed and found to be structurally deficient to withstand the impacts of a significant local earthquake. Due to the age of this portion of the facility, a variety of building support systems are failing and require replacement as well. The cost benefit analysis does not result in favor of retrofitting this section of the building. This project proposes to demolish the 3,200 square foot old hospital wing and construct in its place a three-story addition that meets current seismic standards and allows the local hospital facility to meet the needs and regulatory requirements of current and future medical care for the island community of 13,000 people. 2. St. Herman Harbor Infrastructure Replacement. (Phase I & II) $18,000,000 St. Herman Harbor (SHH) was built by the State of Alaska in 1982 and has been a vital facility for Kodiak's large and diverse commercial fishing fleet for 40 years. The facility provides safe moorage for over 400 vessels from all over Alaska and the West Coast. With the exception of a few minor upgrades over the years, the original float system is beyond its useful life and is in need of replacement. The proposed project would result in the reconstruction of St. Herman Harbor with the replacement of most of its float system in four phases. Currently, the harbor has been losing one dock per year due to aging and the elements. A dock loss results in 2 vessel berths along with the revenue generated for the harbor. This rate of failure is likely to increase in future years as the existing docks further deteriorate. The latest inspection Resolution No. FY2023-21 Version 2 Page 1 of 5 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 report shows many portions of the facility are in very poor condition. The forty -year-old float systems suffer from failing concrete, rotting walers and bull rails, and an outdated electrical system. In 2022, the City contracted with PND Engineers, Inc. (PND) to prepare a St. Herman Harbor Planning and Scoping Report that includes concept harbor layouts, cost estimates and construction phasing recommendations. The Kodiak Island Borough is supporting the City of Kodiak's request for $18 million to complete the first two phases. Modernizing and expanding our port infrastructure is critical to remaining competitive in maintaining our status as an important commercial fishing community. Waterfront facilities and marine infrastructure are a critical element to the City of Kodiak and the State of Alaska, supporting a large portion of the City's commerce, industry, transportation, and recreational needs. AND FURTHER BE IT RESOLVED that: The Kodiak Island Borough's views and recommendations on priority Federal programs for FY 2024 are as follows: 1. Broadband Service to Rural Areas: Establishing or improving broadband service to the Borough's rural island communities has been a high Federal priority for us for many years. Deployment of high-speed broadband to rural areas such as Kodiak is now in the implementation phase from a base of funding provided through the American Rescue Plan Act, the Bipartisan Infrastructure Law and regular annual Federal appropriations. The primary sources of funding have been or will be through NTIA's Tribal Broadband Program; USDA's Telecommunications Infrastructure Loan Program & Community Connect Grant Program; and the new State Broadband Grants Program created by the Bipartisan Infrastructure Law. One of the Borough's communities — Port Lions — was recently a beneficiary of these funds, receiving $29 million for its Broadband Infrastructure Deployment project to install fiber optic cable connecting almost 1,000 households and businesses. We continue to monitor GCI's fiber optic cable project — which includes the Port Lions effort and connectivity to other Island communities -- to bring high speed internet service to Kodiak and through much of the Aleutian Island chain. "Middle" and "last" mile investments also remain important to our villages so they can access higher speed broadband. Should the Borough in cooperation with a local internet service provider pursue funding at a later date with USDA's or NTIA's programs, we would request Delegation support for our application. 2. Groundfish Surveys: Our Federal resolution last year called for maintenance of effort of Federal groundfish trawl surveys in Alaska. This would be six surveys, one of which is dedicated to movement of fish out of historical survey areas. The FY 2023 Omnibus Appropriations Bill funds and directs that number of surveys. Groundfish are critical to Resolution No. FY2023-21 Version 2 Page 2 of 5 �1 85 Kodiak fisheries, accounting for 60 percent of all our landings. Inadequate data creates 86 the possibility of reduced quotas as fisheries managers seek to control fishing effort on a 87 precautionary basis. We appreciate the Alaska Congressional Delegation's support to 88 maintain this coverage in recent years and for favorably considering the Borough's prior 89 year requests. We respectfully request that six Alaska groundflsh trawl surveys be 90 continued and funded for FY 2024. 91 92 3. Fisheries Disaster Relief: Congress has just enacted fisheries disaster relief reform 93 legislation -- the Fishery Resource Disasters Improvement Act -- that would bring greater 94 transparency and deadlines to the steps in the disaster relief determination, funding, State 95 expenditure plan development and relief distribution process. The bill also includes 96 provisions that qualify local government loss of raw fish tax revenues as eligible for 97 reimbursement from future Federal fisheries disaster relief funding. This provision is not 98 mandatory and would require the State of Alaska to include foregone fish taxes as part of 99 its fisheries disaster relief expenditure plans submitted to NOAA. Separately, the FY 2023 100 Omnibus Appropriations Bill includes $300 million for fisheries disaster relief. The Borough 101 thanks the Delegation for its support of fisheries disaster relief reform and funding. We 102 further urge that the Delegation advocate with NOAA that of the $300 million in 103 appropriations the full amount be allocated for Alaska crab disasters consistent with the 104 Governor's disaster relief requests. 105 106 4. North Pacific Observer Program: Observers are an important part of managing the 107 halibut and groundfish fisheries in the Gulf of Alaska. Gulf of Alaska fishery participants 108 pay into the North Pacific Observer Fund to cover the costs of "partial coverage" for Gulf 109 fishing sectors but there has been a shortfall in funding to cover observer costs in recent 110 years. The Congress did not include the increase in funding for the program that the 111 Brough requested last year but did include instructions to mitigate the cost impacts on the 112 small vessel fixed gear fleet while the fishery undergoes the transition to electronic 113 monitoring and reporting. We request that an additional $2 million in funding be provided 114 in FY 2024 above base funding along with carryover of language concerning the cost- 115 burdens on the fleet. 116 117 5. U.S. Coast Guard Base -- Kodiak: The FY 2023 Omnibus Appropriations Bill includes 118 $105 million for USCG Base Kodiak for the pier project to be ready for the Offshore Patrol 119 and Fast Response Cutters. These funds are in addition to the $130 million for fuel pier 120 recapitalization and $40 million for Phase IV housing at the base from the Bipartisan 121 Infrastructure Law. This is very good news for the Base and Kodiak as we ready for the 122 eventual of homeporting of two each of the new Fast Response and Offshore Patrol 123 Cutters. In addition to these vessels, the Borough is very interested in Kodiak being a 124 125 homeport for a new icebreaker(s). We recognize the destinations for the existing commercially available ice breaker, assuming its purchase is funded in FY 2024, and the 126 three new heavy icebreakers yet to be built are likely to be Juneau and Seattle, 127 respectively, but we believe Kodiak would be a logical destination for one or more of the Resolution No. FY2023-21 Page 3 of 5 Version 2 128 new medium class icebreakers. The medium class icebreakers are part of the Coast 129 Guard's plans but have yet to be designed and funded. We very much appreciate the 130 Delegation's support for the Base as a homeport for the new vessel classes and urge 131 continued advocacy as future Coast Guard decisions are made, including future 132 icebreaker homeporting. 133 134 6. Payment-In-Lieu-of-Taxes (PILT): PILT is a very important revenue source to the 135 Borough, given that there are over 2.8 million acres removed by the Federal Government 136 from local taxation within our boundaries. This is land that would otherwise be available 137 to the private sector to develop, creating jobs for the residents of Kodiak and our rural 138 Kodiak Island communities. PILT funds supplement Borough resources to provide basic 139 social services, including medical facilities, emergency fire and rescue services, roads, 140 and schools to our island communities. The FY 2023 Omnibus Appropriations Bill provided 141 full funding for PILT. We thank the Delegation for its long-standing support for PILT and 142 urge continued support for full funding in the FY 2024 appropriations process. 143 144 7. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): While not as significant 145 as PILT, the National Wildlife Refuge Fund is a critical source of replacement revenue to 146 communities like ours that have the presence of a large Federal wildlife refuge within their 147 boundaries. Both the Trump and Obama Administrations sought to zero out its funding. 148 The Biden Administration in its FY 2023 budget request also sought to terminate 149 appropriations for the program. Fortunately, Congress rejected the request and included 150 level funding for the program in FY 2023. The Kodiak Island Borough opposes the 151 termination of appropriations for this important program. The Borough thanks the 152 Delegation for its on-going support and seeks continued level funding in FY 2024. 153 154 8. Essential Air Service (EAS): The Borough's communities are highly reliant on the EAS 155 program, its support to air carriers and its requirements for island community service. 156 FAA programs including EAS are due to be reauthorized in this Congress. The debate on 157 FAA reauthorization is typically when Congressional critics of EAS emerge citing the 158 program as a "wasteful corporate subsidy" to the profitable major airlines and seek to 159 either eliminate the program or enact detrimental changes. They overlook the program's 160 support for air routes that are served by smaller carriers or the fact without the EAS 161 subsidy, the major airlines would either terminate service, reduce it, or raise fares. We 162 urge the Delegation to oppose efforts to cut EAS funding or "reform" the program in ways 163 that would harm air serve on our island. 164 165 9. U.S. Military Arctic Presence: The Borough appreciates the Delegation's sustained effort 166 at urging and directing the Department of Defense to further examine the Arctic's strategic 167 interest to the U.S. This past year the Biden Administration released its strategic blueprint 168 and plans (the National Strategy for the Arctic Region) for the Arctic. It has a number of 169 worthy goals and objectives but like predecessor plans from prior administrations lacks 170 details on specific activities and U.S. investments in the Arctic. Meanwhile, Russia and Resolution No. FY2023-21 Page 4 of 5 Version 2 r L 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 China continue to aggressively push their security interests in the region as evidenced last year by the joint convoy of their military vessels that entered the U.S. EEZ in the Bering Sea. As has been included in our past Resolutions, selection of Kodiak as a potential military base or staging area as the U.S. expands its security presence in the Arctic is a long-term goal for the Borough. We understand this is a multi-year effort, but the Borough urges that Kodiak stay under consideration with the Delegation and Department of Defense for future Arctic security investment. BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: the Kodiak Island Borough administration is hereby instructed to advise Congress and the appropriate agencies of the United States Federal Government of the Capital Improvement Program and other Federal program priorities adopted by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SECOND DAY OF FEBRUARY, 2023 KODIAK ISLAND BOROUGH Aimee Williams, Mayor VOTES: Ayes: Delgado, Griffin, Smiley, Smith, Turner No: LeDoux Absent: Arndt Resolution No. FY2023-21 Version 2 ►_j Nova M. Javier, MMC, Bor} Wgh Clerk Page 5of5