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2025-02-13 Work SessionKodiak Island Borough Assembly Work Session Assembly Chambers Thursday, February 13, 2025, 6:30 p.m. Work Sessions are informal meetings of the Assembly where members review forthcoming programs of the borough, receive progress reports on current program or projects or receive other similar information from the manager. All discussions and conclusions are informal and there are no official actions taken. The Assembly also review the upcoming regular meeting agenda packet and request and/or receive information from staff. This work session is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Page 1. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202 (Limited To Three Minutes Per Speaker) 2. AGENDA ITEMS a. Discussion On Short Term Rentals 3 - 39 Agenda Item Report - Pdf b. Discussion Of the State And Federal CIP List Resolutions 40 - 57 Agenda Item Report - Pdf C. Discuss The Impacts Of The North Star Elementary School 58 - 63 Closure Agenda Item Report - Pdf 3. PACKET REVIEW The DRAFT regular meeting packet is available online at Kodiak Island Borough - Meetinq Type List (civicweb.net). a. PROCLAMATION • Proclamation Declaring United States Coast Guard "We Applaud You" Day PUBLIC HEARING • State Of Alaska Alcohol And Marijuana Control Office Beverage Dispensary Liquor License Transfer Of Controlling Interest For Bernie's Bar LLC • Assembly Review Of The State Of Alaska Alcohol And Marijuana Control Office Liquor License Transfer Of Ownership From Sook C Yun, DBA Second Floor Restaurant (License No.3293) To Nuniaq Cafe' And Deli And Transfer Of Location From Current Location Of 116 W Page 1 of 115 Rezanof Drive To 113 Lower Millbay Road RESOLUTIONS • Resolution No. FY2025-15, Authorizing The Manager To Accept The 2025 Volunteer Fire Capacity (VFC) Grant For The Fire Protection Area No. 1 (Bayside Volunteer Fire Department) • Resolution No. FY2025-16, Adopting A State Legislative Capital Improvement Projects Priority List for the 2025 Legislative Session • Resolution No. FY2025-17, Identifying Federal Project And Program Priorities For Federal Fiscal Years 2025 And 2026 ORDINANCE FOR INTRODUCTION • Ordinance No. FY2025-02A, Amending Ordinance No. FY2025-02, Fiscal Year 2025 Budget, By Amending Budgets To Account For Various Revenues That Are Over Budget, Providing For Additional Expenditures, And Moving Funds Between Projects OTHER ITEMS • Confirmation Of Mayoral Appointments Of City And Borough Representatives From The Planning And Zoning Commission To The Borough Lands Committee (Ms. Tracy Craig and Ms. Sara Fraser) 4. MANAGER'S COMMENTS a 2025-02-13 Borough Manager's Report 64 - 85 5. CLERK'S COMMENTS a 2025-02-13 Borough Clerk's Report 86 - 108 6. ASSEMBLY MEMBERS' COMMENTS r11111111►VA/_\'to] :vKole] ►TAIt•1a1►11116*1 8. INFORMATIONAL MATERIALS a Meeting Materials 109 - 115 This meeting is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202. Page 2 of 115 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 13, 2025 ASSEMBLY WORK SESSION SUBJECT: Discussion On Short Term Rentals ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: For Discussion only. DISCUSSION: January 30, 2025, Assembly Work Session • The Assembly discussed short term rentals in the Kodiak Island Borough. The proposal, initiated by Assembly Members Dave Johnson and Larry LeDoux, requested staff to draft a resolution that mandates all short-term rentals (STRs) operating in the Kodiak Island Borough to register and obtain a license with the Borough by July 1, 2025. Additionally, no new STRs will be authorized after that date until a licensing system and limit are established by resolution. Following the adoption of this resolution, Assembly Member Johnson requests staff assistance in drafting an ordinance to establish the necessary enforcement mechanisms to ensure the resolution is effectively implemented. The Assembly decided to continue discussion after the February 4, 2025, Joint Work Session with the City of Kodiak Council. February 4, 2025, Joint Work Session with the City • The Assembly and City Council engaged in a discussion regarding short-term rentals, specifically focusing on the licensing and permitting of businesses operating in this sector. Both governing bodies plan to revisit this topic in the near future for further deliberation. Included in this packet, alongside the discussions held during the aforementioned meetings, is a request form for an agenda item submitted by Assembly members Whiteside, Griffin, and Sharratt. The agenda item request seeks to promote dialogue regarding potential draft code modifications aimed at establishing a business license program for Short -Term Rentals within the Kodiak Island Borough. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 3 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 30, 2025 ASSEMBLY WORK SESSION D_1 - (0 1W PACKET PROVIDED AT THE JANUARY 30 WORK SESSION SUBJECT: Discussion On Short -Term Rentals In The Kodiak Island Borough ORIGINATOR: Dave Johnson, Assembly Member RECOMMENDATION: For Assembly discussion. DISCUSSION: This proposal, initiated by Assembly Members Dave Johnson and Larry LeDoux, requests staff to draft a resolution that mandates all short-term rentals (STRs.N one-ti'ing in the Kodiak Island Borough to register and obtain a license with the Borough by Ju", 1, 2025. Additionally, no new STRs will be authorized after that date until a licen�:lny system and limit are established by resolution. Following the adoption of this res(,'larion, Assembly Member Johnson requests staff assistance in drafting an ordinanc,'� to establish the necessary enforcement mechanisms to ensure the resolution is effe.ti, ely implemented. ALTERNATIVES: V P FISCAL IMPACT: J OTHER INFORMATION: KIBC 2.30.100 (G)(1) Request: t(- - Staff Assistance, states the following: During a work session ,r a ieeting, or by submitting a request for services on a form provided by the boroi,zh cl,rk's office, any two or more members of the assembly may request that the man6-.,, , clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the c: -)rk fo, placement on the agenda in accordance with KIBC 2.30.060(C)(4). KIBC 2.30.060 (C)(4) 4. Agenda items prepared by staff at the request of the mayor or by two or more assembly members under KIBC 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. Alaska Statute 29.25.020 (b)(1) (1) an ordinance may be introduced by a member or committee of the governing body, or by the mayor or manager. Kodiak Island Borough Page 4 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA DATE SUBMITTED: I L1 13I m Requestor: . 46'-S;' Preferred Mtg. Date: Item Description: II II v t o vir� J W5 In Q wr �>1 _z� 5 GUnd `5 G I %e (knzeJ a r t, d REQUEST FOR ASSISTANCE STAFF TO PREPARE AN ORDINANCE OR RESOLUTION Requestor 1: I rAlA Requczto, 2: t` Detailed Description: &ek In ce � LEGAL OPINION REQUEST Requestor 1: _ Requestor 2: Date when you want the opinion by: Detailed Description: See pertinent code sections on the back. 42-(a Revised on: 20240607 nj Page 5 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be placed on the agenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk forplacement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30.100(G.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provi('eo , v the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or at -)rney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda, in a.::.,rdance with section 2.30.060(C)(4). KIBC 2.30.050 (C.4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under section 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 6t' -lays of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear%n a 1,,rticular meeting agenda. KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request foi So -es on a form provided by the borough clerk's office, the mayor and an assembly member may request wr'aGn i,7al opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Up m re :eipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2.30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting U equest for services on a form provided by the borough clerk's office, any two or more members of the assgr-Lly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the rl,t,'s office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: Received date: - raj I �D m Provided a copy to the Manager on: 12/16/2024 60 days deadline: Scheduled on the meeting agenda of: 01/30/2025 Notes: KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borough clerk for inclusion with the agenda item Revised on: 20240607 nj Page 6 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Kodiak Island Borough Lodges Short Term Rentals d° Shuyak Island State Park Remote (Whole Island i Short Term Rentals: 3 Lodges: 29 -` Fire Protection Area 1 Short Term Rentals: 44 ' Lodges:0 Port Lira Short Term Rent: Is: ' it 0 Lodg !s: 1 City Of Kodiak • Short Term Rentals: 69 Bells Flats Lodges: 0 Short Term Rentals: 8 • Lodges:0 Chiniak Short Term Rentals: 3 Larsen Bay* Lodges: 0 Short Term Rentals: 0 Lodges: 6 • South Road System Short Term Rentals: 6 KcdiA Nation; I Lodges: 3 Wikdhfe Refucp- Old Harbor* laska Idanhme ShortTerm Rentals: l National Lodges: 3 'A ilcilife Ref N WE S Esri, HERE, Garmin, FAO, USGS, EPA, NIPS Size of the Symbol is proportional to total Number of $TR's and Lod es Kodiak Island Borough GIs This map is provided for informational www.kodiakak.us Type purposes only and is not intended for (907)-466-9332 * Lodge any legal representation. 0 12.5 25 50 75 100 ShortTerm Rental Miles Page 7 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Locations Of Short Term Rentals in City of Kodiak and Fire Protection Area 1_�... • MAP e • • zap • • paV° $P nrew`�` • • • •. ,.. • • , Lam • • (DIP By m _ • B ; �,ewo o • oG • a • • J, OTPA Pa• • • P • • V� _4 K°d`ak • � � y oo0e o o ° 0 0 0 0 � = 0 `ploodG a yt tsw e\ No,�ar 0ha� sw`a B • } Esri, HERE, Garmin, USGS, METI/NASA, EPA, USDA Short Term Rentals This map is provided for informational Kodiak Island Borough GIS • Within City Limits purposes only and is not intended for www.kodiakak.us Within Fire Protection • any legal representation. (907)-486-9332 Area 1 0 0.25 0.5 1 1.5 2 Miles Page 8 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. 1 Locations Of Short Term Rentals / Lodges is In Bells Flats and on South Road System %Ieu A "Fr � `~ Womens Bay y• Chiniak Bay �• •• KAS14VAROFF MOO)NT HEITMAN Middle I / O Bay r Kalsin Bay J • Isthumus �/ � • Bay 0':T 40 4 ' R 'AwIIrP EA Kd 1 ♦ I�632 m '�Portage �/ •• ' , Bay ' Pasagshak Esn, HERE, Garmin, USGS, METI/NASA, NGA, EPA, USDA low / Bay r This map is provided for informational Kodiak Island Borough GIS Type purposes only and is not intended for www.kodiakak.us any legal representation. (907) -486-9332 41 Lodge • ShortTerm Rental 0 1.25 2.5 5 7.5 10 Miles Page 9 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Kodiak Island Borough GIS 710 Mill Bay Road Kodiak, Alaska 99615 a� Phone (907) 486-9332 E-mail: twest@kodiakak.us Additional Chart for locations of Short Term Rentals and Lodges within Kodiak Island Borough. TOTAL COUNT OF SHORT TERM RENTALS/LODGE ■ Lodges ■ Short Tenn Rentals V ��/J 69 44 G Q P 29 B 6 ' 3 3 3 3 3 0 0 0 0 .= =■ ■ ■ I CNI.SEN BAY OLD 0 BELLS FLATS CITY OFHARBOR PORT LIONS REMOTE SOUTH END FIRE KODIAK OF ROAD PROTECTION SYSTEM AREA 1 South Road S Alin des everything South of the Pasagshak Rd, Chiniak Highway intersection. Fire Pr rea 1 include: Monashka, Spruce Cape, and all areas surrounding the City limits but not includehin the city boundary. Remote: Includes all other non -specified locations on the Island. Page 10 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Hotel Occupancy Levels Shelikof Lodge (2024): 38 rooms December -February: 75-100 guests per month — Vacancy rate —75% March -April: 175-200 guests per month — Vacancy rate —35% May -September: 300-350 guests per month — Vacancy rate —0% October -November: 150-175 guests per month — Vacancy rate —50% Best Western O Information requested Compass Suites Information requested Quality Inn Information requested G ,Q Clerk's note: This information was supplied by CDL, Dirt-tur Chris French. He indicated that he has made multiple inquiries to various entities but has not yet rer_;; -u =-,y responses as of the release of the packet. Should any information be obtained prior to the work sessio,, nex week, the packet will be revised accordingly, or handouts will be disseminated. Q Page 11 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Kodiak Island Borough GIS 710 Mill Bay Road „ Kodiak, Alaska 99615 bUG' o Phone (907) 486-9332 N2 E-mail: twest@kodiakak.us Additional Chart for locations of Short Term Rentals and Lodges within Kodiak Island Borough. TOTAL COUNT OF SHORT TERM RENTALS/LODGES ■ _odges ■ Short Term Rentals 65 29 8 6 6 3 3 t 1 3 3 0 0 0 ■ ' 0 ■ — _ ■ IN ■ ' 0 BELLS FLATS CITY OF CHINIAK LARSEN BAY OLD HARBOR PORT LIONS REMOTE SOUTH END FIRE KODIAK OF ROAD PROTECTION SYSTEM AREA 1 South Road System includes everything South of the Pasagshak Rd, Chiniak Highway intersection. Fire Protection Area I include: Monashka, Spruce Cape, and all areas surrounding the City limits but not included within the city boundary. Remote: Includes all other non -specified locations on the Island. Page 12 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. 41-aq KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA 1 /14/25 DATE SUBMITTED: Requestor: Bo Whiteside, JaredGriffin,RyanSharrah Preferred Mtg. Date: 1/30/25 Item Description: Advance discussion of potential draft code changes to create a business license program for Short Term Rentals in the Kodiak Island Borough. This will be discussion to inform an ordinance for introduction to be submitted at a future date. Draft attached. REQUEST FOR ASSISTANCE STAFF TO PREPARE AN ORDINANCE OR RESOLUTION Requestor 1: Requestor 2: Detailed Description: LEGAL OPINION REQUEST Requestor 1: Requestor 1: Date when you want the opinion by: Detailed Description: See pertinent code sections on the back. Revised on: 20240607 nj Page 13 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. l KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be placed on the aaenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30. 100(G. 1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C) (4). KIBC 2.30.050 (C.4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under section 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor and an assembly member may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2,30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, anV two or more members of the assembly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: Received date: i IJ 123 Provided a copy to the Manager on: S 60 days deadline: 31(5 /L5 Scheduled on the meeting agenda of: S Notes: S?,,v wi4t, 01n'J0.n 14 C(V4 kv Oe—CIAJ -�V sctne�VC2 4�r Ae Ji� /3 u%S. KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borough clerk for inclusion with the agenda item Revised on: 20240607 nj Page 14 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. StFikethFough = deletion [bold text] = addition 17.15.110 Bed and breakfasts, lodges, motels, hotels and vacation homes Prior to the [operating as] a bed and breakfast, lodge, motel, hotel, or vacation home, (a copy of the transient accommodation business license][*KIBC 12.34.567], a copy of the certificate of registration for the transient accommodation tax (KIBC 3.55.080) or, if applicable, the certificate of exemption from that tax (KIBC 3.55.060), must be submitted to the community development department. Upon receipt of the certificate of registration or certificate of exemption, a certificate of zoning (Chapter 17.185 KIBC) shall be issued. [Ord. 2007-08 §2. Formerly §17,03.110]. *New KIBC [ 12.34.567 Transient Accommodation Business License A. A person engaging in a transient accommodation business shall apply to the finance department for a business license. No individual shall engage in the business of providing transient accommodations without obtaining a transient accommodation business license. B. Application for a transient accommodation business license shall be made to the finance department. C. Each application shall be accompanied by: 1. An annual, non-refundable fee of $XX.XX per license; 2. Proof satisfactory that the applicant has received a valid State of Alaska business license; 3. Proof satisfactory that the applicant has received operator's certificate of registration; 4. Proof satisfactory that the applicant has received certification of zoning; 5. Proof satisfactory that the applicant possesses valid commercial insurance to operate a transient accommodation business.] Page 15 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. 3.55.080 Operator's certificate of registration. A. All persons engaged in selling or renting property subject to the tax imposed by this chapter shall tole as applieat+en#e [must obtain a certificate of registration prior to] the date of commencing business in the borough or opening a place of business within the borough. An application for a new business not previously registered to collect sales tax shall be accompanied by a $100.00 deposit, or, in the case of a person who does not maintain a permanent place of business within the borough or who is not a local resident residing within the Kodiak Island Borough, a $200.00 deposit which the registrant may recover by a deduction from the remittance submitted with the first quarterly return filed or, if that return is insufficient, the balance shall be refunded. If applicant has established credit with the borough, the finance director may waive the required deposit. Page 16 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Nova Javier From: Jared Griffin Sent: Tuesday, December 31, 2024 9:04 AM To: Aimee Williams Subject: Fw: Short term rental ordinance - Transient Accommodation Business License Attachments: Transient Accomodation Business License_BW draft.pdf From: Bo Whiteside <bo.whiteside@kibassembly.org> Sent: Sunday, December 8, 2024 6:17 PM To: Jared Griffin<jared.griffin@kibassembly.org>; Ryan Sharratt <ryan.sharratt@kibassembly.org> Subject: Short term rental ordinance -Transient Accommodation Business License Draft language attached. Given we don't have MS office, formatting is wonky in places from saving. I chose not to address occupancy requirements and wanted to focus on creating a licensing program for STRs first. Most of this comes from Seward, although not quite as restrictive. Both Seward and Valdez require a "Life Safety Inspection" prior to issuance of a business license, but I'm not sure we have capacity to add that to the list of requirements. Seward requires a Link to the rental property listing, but I wasn't able to find it in their code and not sure we need to take it that far. Please give it a read and let me know if you have any questions or suggested edits. I'd like to get this in the queue for introduction asap. Thankyou, Bo Page 17 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. JEDC.org 612 W. Willoughby Avenue, Suite A Juneau, AK 99801 IEDCJuneau Economic Phone: (907) 523-2300 Development Council Fax: (907) 463-3929 JEDC Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Research Question Despite increases in Juneau's housing stock relative to our population, why do we continue to experience worsening affordability and availability? There have been 1492 new units added to Juneau's housing stock, while Juneau's population has remained relatively stable in the last 12 years. Where have those units gone? What is the impact, if any, of the short-term rental market on Juneau's housing stock? Summary of Findings There are fewer dwelling units per adult in Juneau than there were 12 years ago. Through an analysis of varying factors in the housing market, short-term rental (STR) market, census data, and national trends, we see that the demand for housing units is rising faster than new units are being added. Multiple factors have contributed to this. Some housing units are being converted into short-term rentals, and the production of new housing units has not kept up with the housing demands of Juneau's population demographic changes. The population of Juneau has increased by 980 people, or 3.13%, from 2010 to 2020, according to census data. Juneau's population has also gotten older, with a larger share of the older population living alone. Census data shows the portion of the population 20 years of age and older increased by 1435 people, or 6.21%, while the youth population has decreased. This has led to an increased demand for housing units, and the housing supply has not kept up with the demand. While both have influenced the housing market, the demographic changes in Juneau's population are a more significant factor in Juneau's housing shortage than conversions to short-term rentals (STRs). Page 18 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Table of Contents Research Question & Summary of Findings.........................................................................................1 General Housing Market Data............................................................................................................3 LocalHousing Stock Data...................................................................................................................6 Addedand Lost Housing Units..................................................................................................................6 Local Demographics and Living Arrangements.........................................................................................8 Salesto Non-Residents...........................................................................................................................11 Ownersof Multiple Units........................................................................................................................12 City Bed Tax Rates and Compliance..................................................................................................13 NationalTrends...............................................................................................................................14 Appendix 1: Selected Data Tables.....................................................................................................16 Appendix2: Other STR Data.............................................................................................................18 Sources............................................................................................................................................22 Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 12 jEDCju,fto ." e C—cil Page 19 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. General Housing Market Data The housing market in Juneau has experienced several changes over the last decade, becoming a more competitive environment. The number of home sales per year has increased, prices have risen, and the homes are spending fewer days listed on the market. Meanwhile, the number of new housing permits issued per year has been inconsistent. Median Price of Homes, 2012-2021 $463,000 $419,900 $430,000 $365,000 $385,000 $379,050 $384,500 $389,000 $338,900 $350,000 $350,000 � $326,000 $258,000 $257,000 $265,000 $279,500 $284,450 $280,000 $294,950 $302,000 c $19 $212,500 $224,000 $232,500 $241,000 $238,000 9,900 $171,500 $167,000 $168,500 $176,250 v 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Single Family Townhome Condominium Figure 1: Median price of homes, 2012-2021 Between 2012 and 2021, the median prices of single-family households, townhomes, and condominiums have risen at similar rates. Prices for each type of home increased between 35% and 39% overall, or 3.9% to 4.3% annually. The US Census defines a townhouse as "side by side housing units that do not meet the definition of single-family houses," particularly homes that share one or more walls with other units. Home Sales Per Year, 2012-2021 o v O U E In Z N ` ■ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Condominium 60 75 66 98 108 110 138 61 120 147 Townhome 49 57 61 84 75 71 72 30 64 89 ■ Single Family 198 220 212 207 269 239 264 131 272 308 Total 307 352 339 389 452 420 474 222 456 544 Figure 2: Home Sales Per Year, 2012-2021 Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 13 jEDCj.,Eto� _ �,d pme C—cil Page 20 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. The number of home sales closed each year grew consistently between 2012 and 2021, except for a significant dip in 2019. 70 Median Days on Market, 2010-2021 60 c 0 50 (a a) 40 ca ` 30 20 ` 10 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Single Family 40 31 32 21 25 23 25 23 27 23 8 5 Townhome 23 45 22 20 20 12 22 17 12 10 4 6 Condominium 60 66 33 21 19 30 36 40 25 13 11 5 Weighted Average 41 40 31 21 23 22 27 26 24 17 8 5 Figure 3: Median Days Listed on Market, 2010-2021 Homes are also selling faster than they were a decade ago. In 2011, homes spent an average of 40 days on the market before selling. By 2013 the average homes were selling in half that time, just 21 days. While sales slowed slightly over the next five years, the average days listed fell between 2018 and 2021. In 2021, homes were spending less than a week on the market before selling. Average Rental Price, 2009-2020 $2,500 a) $2,000 $ l�9 $1 g29 $1801 $1,814 1 3 2 000 $1 g14 $191 $ 0 $1482 $14g6 $1450 $162 $1494 $1,500 �o Q $1,000 $1115 $1134 $1151 $1196 $1240 $12g6 $1,256 $1256 $1338 $1331 $1p99 $1110 $500 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Single Family Residence Apartment Figure 4: Average Rental Price, 2009-2020 Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 14 ��doPm-«—dl Page 21 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Average single-family home rental prices increased by 35% between 2010 and 2020, comparable to the median price increase of single-family homes over a similar period (Figure 1). Apartment rental prices increased 20% from 2010 to 2020. New Housing Permits Issued, 2013-2022 300 on v c o N 250 3 E z 200 150 100 50 , 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Accessory Units 18 14 32 28 11 15 18 15 19 6 Multifamily 70 158 33 181 36 18 126 7 7 8 ■ Single Family Residence 54 43 59 42 41 44 47 38 45 32 Total 142 215 124 251 88 77 191 60 71 46 * Q1 and Q2 only Figure 5: New Housing Permits Issued, 2013-2022 Q2 Data from the City and Borough of Juneau (CBJ) of recent permits issued show a slowdown in the number of multi -family units permitted during the COVID-19 pandemic. Permits issued are a direct indicator of the number of new units that will be built in the next few years. With relatively fewer total units being built, there is no immediate fix to the housing shortage. msgiioResearch Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 5 jEDCj.,fto -" e C—cil Page 22 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Local Housing Stock Data Added and Lost Housing Units While new homes continue to be constructed in Juneau, housing units are also taken out of the local housing stock each year. The construction of new single-family homes remains relatively consistent over the last decade, while new multi -family units rise and fall unevenly year to year. Demolition of housing units and conversion to short-term rentals are two factors that have removed housing units from the residential stock. New Units by Housing Type, 2010-2021 300 252 250 —125- 193 200 156 150 131 100 89 67 77 84 82 64 72 50 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Single Family ■ Multi Family ■ Accessory Apt Manufactured Homes Figure 6: New Units by Housing Type, 2010-2021 (See Appendix 1, Table 1) 1,492 units of housing were built in Juneau from 2010 to 2021. 698 (47%) of the new units were part of multi -family residences, including those in condominium and apartment buildings. The number of new multi -family units fluctuates significantly between years, with seven added in 2011 and 178 added in 2016. This pattern is not unexpected, as a single multi -family complex may include dozens of units that are completed at the same time. 525 (35%) of the new units were single-family residences. New construction has been consistent since 2013, with 38 to 58 new units added each year. Accessory apartments and manufactured homes make up a small portion of the new housing stock, with 200 (13%) units and 69 (4.6%) built since 2010, respectively. The construction of manufactured homes has nearly disappeared since 2015, with five or fewer units added per year. Meanwhile, accessory units have become increasingly common since 2015, averaging 19 new units per year, compared to 13 units per year prior to 2015. New accessory apartments and manufactured homes both remain low, despite intentional actions adopted by CBJ to promote them, such as an accessory apartment incentive grant and a mobile home loan program. msgiioResearch Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 16 jEDCju,fto -" e C—cil Page 23 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Range of Housing Units Lost, 2010-2021 120 100 102 90 80 82 60 70 71 52 65 57 40 44 45 46 j40 i i i i I 33 34 37 38 31 28 32 20 011 : 22 i19 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Demolished I Minimum STR Conversions Figure 7: Housing Units Demolished and New STRs Registered, 2010-2021 (See Appendix 1, Table 2) 181 units of housing were demolished between 2010 and 2021, an average of 15 units per year. This is comparable to 12% of the new units built over the same period. The number of STRs in Juneau has grown in the last decade, according to data collected by the STR monitoring firm, Harmari. Since 2010, 616 units of housing in Juneau have been used as a STR at some point. 484 rentals were entire homes, and 132 were within shared -home. At least 301 of these units were actively being used as STRs in 2021. The number of converted STRs listed above is estimated based on the total number of STRs and the percentage of new STR listings created each year from data provided by Harmari. They reported Juneau having a total of 616 STRs, as well as a breakout by percentage for new STR listings created each year. As it is unknown if all 616 STRs are still active, 616 is used as the maximum number of converted units, and the 301 STR units known to be active are used as the minimum number, creating a range of 301 to 616. While the net housing stock has increased in total, it has not always kept pace with the conversion to STRs. In 2018 there were more housing units converted to STRs than new units built. Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 17 )EDCi —Economic i.P n C ncii Page 24 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. New Housing Units vs Range of New STRs and Lost Units 300 250 200 206 194 180 170 150 155 122 128 100 78 45 50 58 61 47 r 36 51 41 40 34 13 30 15 0 24 -20 -50 — -100 — -150 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 � New Units � Minimum STR Conversions with Error Range for Maximum � Demolished Maximum Net Change --*--Minimum Net Change Figure 8: Net Change in Housing Units, 2010-2021 Local Demographics and Living Arrangements The demand for housing in Juneau has changed over the last decade. Juneau's population has increased slightly since 2010, and the portion of residents 20 years of age or older has increased. The number of Juneau residents living alone has also increased, especially among residents 65 years and older. Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 18 )EDCi —Economic i.P—C ncii Page 25 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Juneau's Population by Age, 2010-2020 35000 31275 32255 30000 24533 25000 23098 20000 15000 10000 5000 0 Population Population 20+ ■ 2010 ■ 2020 Figure 9: Juneau's Population by Age, 2010-2020 Juneau's aging population may be another factor leading to an increased demand for housing. While the population increased by 980 people (3.13%) from 2010 to 2020 (US Census), the average resident age also increased. The number of residents 20 years of age and older increased by 1,435 people (6.21%) while the youth population decreased by 455 (-5.6%). Number of Residents Living Alone by Age, 2015-2020 2500 2189 2328 2255 2232 1984 1975 - 2000 1462 1500 1105 1010 1000 706- -693 745 483 368 359 356 330 425 500 0 2015 2016 2017 2018 2019 2020 18 to 34 years - 35 to 64 years 65 years and over Figure 10: Number of people living alone by age group From 2015 to 2020, an increased number of Juneau residents reported living alone (ACS, 2015-2020). A recent national trend has pointed to young adults delaying moving out of their family homes during the COVID-19 pandemic, which caused a downturn and then a surge in demand for apartment rentals (see the National Trends section below). However, Juneau has experienced a different trend. The number of b l Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 19 J ew i<—ic JED [.P «—cii Page 26 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. individuals ages 18 to 64 living alone shifted somewhat over this period, but the number of individuals aged 65 and older living alone more than doubled from 2015 to 2020. 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Percent of Age Group Living Alone, 2015-2020 33.9 % 26.5% 27.8% 22.7% 21.0% 20.6% /0 17.2% 16.8% 17.1% 14.3% 14.2% 6.4% o 5.0% 4.8% 4.8% 4.5% 5.8/0 2015 2016 2017 2018 2019 2020 18 to 34 years - 35 to 64 years - 65 years and over Figure 11: Percentage of each age group living alone Not only are more older residents living alone, but they are also making up a greater portion of Juneau's population. This is the direct reverse of national trends reported for 2020 and 2021, which attribute the growth to the younger generation. In 2020, the total population in Juneau of 18 to 34-year-olds was 7,347, the population for 35 to 64-year-olds was 13,084, and the population for age 65 and older was 4,312. Units of Housing per Adult Population (Age 20+) 0.7000 0.6980 0.6967 0.6950 0.6900 0.6850 0.6800 0.6750 k )EDC- Economic n 10p cn CH 0.6961 0.6858 2010 2020 -Units per Adult Population given maximum conversion (616 new STRs) -Units per Adult Population given minimum conversion (301 new STRs) Figure 12: Units of Housing per Adult, 2010-2020 Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 10 Page 27 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Data on the number of households varies by several hundred per year, so total population data is more precise when calculating the effects of STRs or demographic changes of people living independently. Between 2010 and 2020, the population over 19 years old increased from 23,098 to 24,533. The number of units, accounting for demolished units, increased from 16,165 to 17,348. However, the number of STRs is difficult to measure. There were 616 total known STRs in Juneau, but only 301 were shown to be active in the past year. Using these two numbers as the range of total STRs, the number of STRs between 2010 and 2020 increased from 43 to 256 or 87 to 524. Using the two different estimates of units converted to STRs and taking them out of the total number of units gives us a high and low estimate for the decrease in the available units to population ratio. The high estimate is a decrease from 69.6 to 68.6, meaning Juneau lost 1.5% of its available housing due to both STRs and an aging population. Using the low estimate is a decrease from 69.8 to 69.7 or a decrease of only 0.19% of the available housing. Sales to Non -Residents A portion of Juneau's residential property is owned by individuals and businesses outside of the community. Using the mailing address of property owners registered in the City and Borough of Juneau's assessor's database, we estimated the number of residential units owned by local and non -local individuals. Note that this is an estimate of local and non -local ownership. Property owners who primarily reside outside of Juneau and businesses with locations outside of Juneau may be registered with their Juneau address. This did not differentiate between the owner being an individual or business. Locally vs. Non -Locally Owned Residential Property Units, 2022 ■ Owner's Address is In Juneau or Douglas Owner's Address is Outside of Juneau and Douglas Figure 13: Residential Units Owned by Juneau Residents and Non -Juneau Residents, 2022 (See also: Appendix 1, table 4) 1,698 residential units are registered under a mailing address outside of Juneau, 14% of the total units. Apartment units were the second most likely to be owned by an entity outside of Juneau, as 35% of the 1,764 units were registered under an out-of-town address. Only cabins had a higher out-of-town ownership rate, at 36%. MsgiioResearch Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 11 jEDCj.,Eto� _ Page 28 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Owners of Multiple Units Most Juneau homeowners own a single unit of housing. Beyond that, only a handful of organizations own a significant number of units. Four owners are listed as having over 100 units, with the rest below 70 units. These are Alaska Housing Development Corp at 112, Alaska Housing Finance Corp at 119, Mendenhall -Juneau Apartments LLC at 125, and Tlingit Haida Regional Housing Authority at 127. The rest are private individuals. Frequency of Number of Residential Units Owned 9000 8000 7705 v 7000 3 6000 0 5000 0 v 4000 E 3000 z 2000 1173 1000 ■ 126 92 108 31 0 — 1 2 3 4 5 to 20 Over 20 Number of Residential Units Owned Figure 14: Frequency of Number of Residential Units Owned Very few non -local individuals and businesses owned more than one unit, with only one company not affiliated with the State of Alaska owning more than ten units. Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Pagel 12 jEDCju,fto -" Page 29 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. City Bed Tax Rates and Compliance As of April 2022, 170 STR businesses were registered with CBJ, well below the number of STRs currently advertised. This is the number of businesses registered, not the number of units they may have. Comparing this to the estimate of units owned by each operator shown in figure 23, as well as the high and low estimates for total STRs operating between 301 and 616, the city has an estimated compliance rate of STR operators between 35% and 72%. Number of Registered STRs, 2018-2022 180 170 170 160 159 154 157 147 / 150 00-1 140 130 2018 2019 2020 2021 *2022 —# of Registered STRs Figure 15: Number of STR businesses registered with the city *STR data for 2022 was collected in April The total city tax rate for STRs is 14%. That is the total of the 5% sales tax and an additional 9% bed tax. The bed tax was increased in 2020 from 7%. Four years of bed and sales tax were provided by CBJ which shows a dip in revenue in both during the pandemic. However, the revenue from hotels is currently much higher, averaging $2,517,505 per year between 2018 and 2021, while STR revenue averaged $343,386. If the STR registration compliance rate is at only 35%, the city could see an additional average annual revenue of $637,716 if STR tax compliance was strictly enforced, totaling $981,102 in taxes annually. Given the maximum estimated number of STRs and average revenue from the past four years, the city could see nearly $1,000,000 in tax revenue if the total number of STRs comes into compliance. Total Tax Revenue from Hotels and STRs $3,500,000 $2 g46,640 $3,084,021 $3,000,000 $2,710,853 $2,500,000 — $2,000,000 $1,500,000 $1,000,000 $1,428,506 $327,017 $367,607 $480,972 $500,000 $197,947 $0 2018 2019 2020 2021 Total Revenue from Hotels —Total Revenue from STRs Figure 16: Hotel and STR tax revenue Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 13 jEDCa, Economic oe�d PMe Co di Page 30 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. National Trends STRs and housing issues are a concern nationally. According to the Harvard Joint Center for Housing Studies, rental prices for apartments and single-family homes have risen drastically since 2020, with significant jumps in the past year. Apartment rent prices are up 11.6%, while single-family home prices are up 12.4% between the first quarters of 2021 and 2022. Data from Apartment List online rental marketplace shows the 2021 change in median rent to be an increase of 17.6%. For comparison, they report an increase of 3.4% in 2018, an increase of 2.3% in 2019, and a decrease of -1.5% in 2020. So far, their tracking shows an increase of 6.7% in rental rates through July 2022. While this is below the increase during the same months in 2021, it has already exceeded the annual increase of the previous three years. Annual Change in Median Rent in US, 2018 — Present +zo 0 T 2021: +17.6 % L 0 7 +1596 C 0 N c +10 % to -C 2022:+6.7% YTD 3 +5°% O 2018: +3.4% 2019: +2.3% Y C 0% Of 2020:-1.6% -5% J F M A M J J A S O N D Source: Apartment List Rent Estimates Apartment 0 List Available: httpsJAw-apartmentlist.com/research/category/data-rent-estimates Figure 17: National trends for apartment rental rates from Apartment List (from https.,Ilwww.apartmentlist.com/research/nationa/-rent-dato) Apartment List stated several factors contributing to the increase in rental costs. Increased construction costs, such as materials and labor, have increased the prices of new properties. Many Americans changed their living arrangements since 2020, possibly in response to the COVID-19 pandemic. In 2020, the count of total households dropped by 2.5 million during the middle of the year. However, by the end of 2020, the count of households returned to pre-COVID levels and then continued to grow by another 2 million in 2021. Apartment List attributes this to young adults moving back into their family homes in response to the COVID-19 pandemic. Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 14 ��doPm-C—cil Page 31 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Total Number of Households in the US, 2018-2022 133 132 y 0 t 131 m w 0 = 130 0 0 129 i 128 127 JFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJ 2018 2019 2020 2021 2022 Source: US Census Bureau, Current Population Survey. Accessed via IPUMS-CPS. Apartment 0 List Figure 18: National trends for apartment rental rates from Apartment List (from https://www. apartmentlist. com/research/more-than-two-million-households-dissolved-d uring-pandemic) The number of single -person households grew significantly after 2020. Apartment List cites census data showing single -person households making up 61% of the 2.5 million households lost in 2020 and 82% of the 4.5 million households gained since this dip. Many young adults followed this move -in, move -out pattern. Apartment List shows 400,000 from Gen Z, people born between 1997 and 2012, moving from single person living arrangements into family households between March and May 2020. Nearly 1 million individuals in this age group then moved from family households to living alone by 2021. The number of non -family households, such as groups of roommates, dropped during the COVID-19 pandemic, and this number has not significantly recovered. Tying Together National and Local Trends Census data for Juneau shows that 2015 through 2020 saw an increase in the number of older adults living alone. If this trend continues into 2022, and Juneau experiences the national trend of younger adults needing housing at an increasing rate since 2020, these groups will be in direct competition for single person living spaces. An insufficient housing supply has led to a competitive housing market in Juneau, contributing to increased costs for individuals renting and buying homes. Recent trends indicate that these issues will continue to impact Juneau in years to come. While it is easy or convenient to point to a single source causing the tightening of the housing market as the pandemic winds down, the STIR market is only one factor among many causing these issues. The construction of new housing has not kept up with the increase in the adult population. Behavioral changes around independent living for young adults and the growing 65 and older population are other factors straining the housing market. Each of these factors may require different actions to ensure that Juneau is an accessible and affordable place to live for everyone in our community. Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 15 jEDCju,fto -" e C—cil Page 32 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Appendix 1: Selected Data Tables Table 1: New Housing Units by Type, 2010-2021 New Units Single- Family Multi- Family Accessory Apt Manufactured Homes 2010 89 44 21 11 13 2011 67 39 11 12 5 2012 77 28 35 10 4 2013 156 54 70 18 14 2014 225 43 158 14 10 2015 131 58 37 31 5 2016 252 45 178 25 4 2017 84 40 30 12 2 2018 82 44 18 15 5 2019 193 47 126 18 2 2020 64 38 7 15 4 2021 72 45 7 19 1 Total 1 1492 525 698 1 200 69 Table 2: Housing Units Lost, 2010 to 2021 Demolished Estimated Minimum Units Converted to STRs Estimated Maximum Units Converted to STRs 2010 10 1 1 2011 11 11 22 2012 13 6 13 2013 24 10 20 2014 17 14 28 2015 50 20 40 2016 11 35 71 2017 4 33 67 2018 4 48 98 2019 13 25 52 2020 16 12 24 2021 8 24 49 Total 181 239 485 Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 16 ew Econ )EDC �o�n«omicn.nd I Page 33 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Table 3: Residential Properties by Owner's Mailing Address PPTY Use Code Total Owner's Owner's Percentage Type Properties Address is In Address is Estimate of Juneau or Outside of Locally Owned Douglas Juneau and Properties Douglas 1 Residential 5017 4582 435 91% 2 Duplex 302 257 45 85% 3 Triplex 44 37 7 84% 4 Fourplex 111 90 21 81% 5 Residence 791 721 70 91% w/Apartment 6 0 Lot Line 865 827 38 96% 7 Townhouse 192 182 10 95% 8 Condo 1284 1065 219 83% 9 Cabin 187 135 52 72% 10 MH & Land 229 206 23 90% 12 MH In Park 196 170 26 87% 18 Apartment 101 81 20 80% Total 9319 8353 966 90% Table 4: Residential Units by Owner's Mailing Address PPTY Use Code Total Owner's Owner's Percentage Type Units Address is In Address is Estimate of Juneau or Outside of Locally Owned Douglas Juneau and Units Douglas 1 Residential 4975 4546 429 91% 2 Duplex 594 503 91 85% 3 Triplex 129 108 21 84% 4 Fourplex 422 340 82 81% 5 Residence 1453 1322 131 91% w/Apartment 6 0 Lot Line 872 834 38 96% 7 Townhouse 193 183 10 95% 8 Condo 1172 979 193 84% 9 Cabin 55 35 20 64% 10 MH & Land 221 201 20 91% 12 MH In Park 377 329 48 87% 18 Apartment 1764 1149 615 65% Total 12227 10529 1698 86% Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 1 17 .Pme JEDCtzlE�Z-tC «oU,C,, Page 34 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Appendix 2: Other STR Data Additional data points were presented by Harmari showing an estimate of the STIR market in Juneau. The following charts in this section are made from the data they provided. STRs Listed by Website 400 365 350 300 250 200 150 126 100 62 50 21 ■ 0 Airbnb HomeAway/VRBO+ FlipKey/TripAdvisor+ Booking,Craigslist, Affiliates Affiliates Other Figure 19: STRs listed per website Harmari reported a total of 365 Airbnbs and 126 VRBOs. Initial data from GovOS reports Airbnb has 350 listings, and VRBO has 131. This is close to what Harmari reports, but not an exact match. This may be due to different time periods sampled with Harmari doing a farther look back. It is also unknown exactly how many are listed on both or other services. The rest of the data is presented as a percentage of the total number of STRs reported, which is 616. Percent of Ads Created 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Pre 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2010 -Percent of Ads Created Figure 20: Percent of new ads created Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 118 I— [con k jEDC.1.P Co d1 Page 35 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. The number of ads created shows a spike before the pandemic and then a dip that has since recovered. This data was used to calculate the number of STRs created each year in Figure 7. STR Housing Type 3.9% 0.6% ■ House ■ Condo ■ Other ■ Commercial ■ Tiny Homes Figure 21: STR by type Room Type 1.6% ■ Entire home/apt ■ Private Room ■ Shared Room Figure 22: Room types Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 119 )EDCi —Economic i.P—C ncii Page 36 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Number of Properties by Owner 0.70% 2% \ 3.40% ■1 2 3 4 5+ Figure 23: Properties by owner Online Activity 3.30% ■ Active ■ Inactive ■ Intermitittent Figure 24: Active Advertisements Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 20 )EDCoi —Economic 10p oC—Cil Page 37 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Number of Bedrooms 2.30% 1.30%r 1.30% � I I 5 ■0 12.50% ■ 1 ■2 ■3 ■4 W21.6 ■5 ■ 6+ Figure 25: Number of Bedrooms Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 21 i ew Economic JEDCo io no�nndi Page 38 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.a. Sources 1. Apartment List Research Team. Apartment List National Rent Report, August 30, 2022. https://www.apartmentlist.com/research/national-rent-data 2. Ciambor, Scott. Housing Action Plan Update, June 6, 2022 to CBJ Chair Maria Gladziszewski and Committee of the Whole. https://packet.cb*ak.org/DisplaVAgendaPDF.ashx?MeetinglD=1754 3. Ciambor, Scott. Housing Pressure, June 6, 2022 to CBJ Chair Maria Gladziszewski and Committee of the Whole. https://packet.cbaak.org/DisplavAgendaPDF.ashx?MeetinglD=1754 4. City and Borough of Juneau. City Assessor's Public Database. Accessed August 25, 2022. https://property.wuneau.org/ 5. Harmari. Dashboard Report for Juneau, Alaska. July 12, 2022. 6. Juneau Economic Development Council. Juneau and Southeast Alaska Indicators and Outlook Report, December 2021. https://www.eedc.org/research-library-reports-studies-by-iedc/ 7. Juneau Economic Development Council. Juneau Housing Needs Assessment, November 2012. https://www. *edc.org/sites/defau It/files/2012%2OJ u neau%2OHousi ng%2ONeeds%2OAssessment %20v%2011%2020%2012. pdf 8. US Census Bureau, 2020. Living Arrangements of Adults 18 years and Over by Age (B09021), 2015-2020 American Community Survey 5-year estimates. Accessed August 22, 2022. 9. US Census Bureau, 2020. Juneau City and Borough, Alaska. Accessed August 25, 2022. https://www.census.gov/quickfacts/fact/table/iuneaucityandboroughalaska/PST045221 10. Warnock, Rob. More Than 2 million Households Dissolved (then Reappeared) During the Pandemic, July 19, 2022. https://www.apartmentlist.com/research/more-than-two-million- households-dissolved-during-pandemic Research Note: Juneau Housing Stock and Short -Term Rentals August 2022 Page 122 )EDC— Economic ['P—C... cil Page 39 of 115 Discussion On Short Term Rentals AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 13, 2025 ASSEMBLY WORK SESSION SUBJECT: Discussion Of the State And Federal CIP List Resolutions ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: DISCUSSION: To support lobbying efforts at the state and federal levels, the Kodiak Island Borough Assembly creates two lists of projects that inform the state and federal delegations of the needs of the Kodiak Island Borough. The signed resolution of state level list is entered into Capital Project Submission and Information System, CAPSIS and shared with KIB's State of Alaska delegation. The signed resolution for the federal list is forwarded to the federal lobbyist, Mr. Sebastian O'Kelly who then distributes the list to KIB's federal delegation. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Discussion Of the State And Federal CIP List Resolutions Page 40 of 115 AGENDA ITEM #2.b. 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 42 43 44 45 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2025-16 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ADOPTING A STATE LEGISLATIVE CAPITAL IMPROVEMENT PROJECTS PRIORITY LIST FOR THE 2025 LEGISLATIVE SESSION WHEREAS, the Kodiak Island Borough represents approximately 12,721 residents of the Kodiak Island Archipelago living in six incorporated cities and one community governed by a tribal council government per the Alaska Department of Labor and Work Force Development; and WHEREAS, a Borough —wide capital improvement program has been adopted by the Kodiak Island Borough Planning and Zoning Commission which identifies major needs of the island community for the next five years; and WHEREAS, the Kodiak Island Borough Assembly has reviewed the borough -wide capital improvement program adopted by the Planning and Zoning Commission and identified major projects to submit to the Alaska Governor, State Legislative Delegation, and Federal Legislative Delegation for funding consideration. NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: The Kodiak Island Borough's State Legislative capital improvement project priorities (unranked) for the 2025 legislative session are as follows: • Kodiak Wastewater Treatment Plant Facility Estimated Project Cost $1,900,000 Funding Acquired $100,000 Needed Funds $1,800,000 The City of Kodiak provides water and sewer services to the Kodiak Island Borough residences and businesses that are located adjacent to City of Kodiak boundaries. The City of Kodiak treatment plant operates under an Alaskan Department of Environmental Conservation (ADEC) APDES permits. The first phase of a larger project to upgrade the City of Kodiak Wastewater Treatment Plant to evaluate the facility for immediate system's needs. The last major maintenance upgrades to the facility was in 1999. The condition and evaluation assessment included all major components within the plant interior and exterior, the outbuildings and three aeration basins; including all mechanical equipment needs. Alaska Pollutant Discharge Elimination System (APDES) permitting requirements were included during this assessment. Included in the facility rebuild assessment is the supervisory control and data acquisition (SCADA) system to interface with the 34 sewer lift station pumps and waste treatment at the facility. This facility, with its labyrinth of connecting sewer lines, directly serves 2667 City of Kodiak and Kodiak Borough households including commercial businesses. The treatment plant also serves the U.S. Kodiak Coast Guard Base and the Resolution No. FY2025-16 Page 1 of 7 Page 41 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 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 85 86 87 88 89 90 Pacific Spaceport Complex indirectly with our certified laboratory testing and waste disposal; not to mention NOAA vessels, the Alaska Marine Highway vessels and the expanding cruise ship industry stopovers in our Kodiak Harbors. The Kodiak Island Borough supports the City of Kodiak request for Federal funding in the amount of $1.9M to begin design efforts leading to the construction of this critical infrastructure Wastewater Treatment Plant project that will support the wastewater needs of the community for the next twenty years. St. Herman Harbor Infrastructure Replacement Estimated Project Cost: Phase I & II $16,000,000 Phase III & IV $40,000,000 Funding Acquired $ 1,800,000 Needed State Funds $ 5,000,000 The City of Kodiak is the owner of the two largest harbors in the Kodiak Island Borough, one of those harbors, 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 over 40 years. The State of Alaska turned over all state-owned facilities in St. Herman Harbor to the City of Kodiak in 1999. The facility provides safe moorage for more than 400 vessels from all over Alaska and the West Coast. Except for a few minor upgrades over the years, the original float system is beyond its useful life and is in critical 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 saltwater 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 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. These floats contain electrical pedestals, fire suppression water lines, safety ladders and supply water. 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 supports the City of Kodiak request of $16 million to complete the first two phases. Phases III & IV estimated project development cost is approximately $40,000,000. Modernizing and expanding the 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. Resolution No. FY2025-16 Page 2 of 7 Page 42 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 III 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 Service Area Roads Improvements and Paving Estimated Project Cost $6,000,000 Local Funds $1,200,000 Needed Funds $4,800,000 This project addresses the on -going need to improve portions of the roads in the Kodiak Island Borough's Road service areas: Service Area No. 1, Womens Bay Service Area, Bay View Road Service Area, and Monashka Bay Road Service Area. These roads connect residential neighborhoods with the greater Kodiak community. Paving projects will address main thoroughfares or busy neighborhood roads. Improvements to major drainage courses, installation of guard rails, and other identified road improvement needs may also be addressed with this funding. Priorities for expenditure of these funds are determined by the road service area boards. Local contributions to road improvements may be funded through local improvement districts where those in the district are taxed a proportion of the project cost. • Hospital Facility Sterilizer and Boiler Replacement Estimated Project Cost $10,000,000 Funding Acquired $0 Needed Funds $10,000,000 The Kodiak Island Borough owned hospital facility boilers and associated system components are aging along with the facility. The system components that have been identified for major repair or replacement include the oil -fired boilers, chiller unit, reverse osmosis water system, steam generation equipment and sterilization equipment are in consideration. The oil -fired boilers provide the major hydronic heating component for several associated systems at the hospital facility. They include the production of facility heat, hot water and the hot water component for conversion to steam via a steam generator that is distributed to the sterilizers required for the hospital operations. The sterilizer equipment has been maintained at an operational level. Due to the age of the existing equipment, increased frequent failures associated with the steam generator and sterilization equipment has affected the operational capacity of the hospital to the point where operating room availability is managed at times with the functional capacity of the facility to ensure properly sterilized equipment. All of the system components need to be evaluated for replacement timeframes as and of the individual component failures may lead to services being suspended at the hospital facility. • City of Larsen Bay Reservoir Spill Way Estimated Project Cost $1,200,000 Funding Acquired $0 Needed Funds $1,200,000 The water reservoir spill way in the community of Larsen Bay is eroding and is nearing failure. This reservoir provides drinking water and hydroelectric power to the residents in the second - Resolution No. FY2025-16 Page 3 of 7 Page 43 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 class city on Kodiak Island's west side. The Kodiak Island Borough supports the second-class City of Larsen Bay's request for funding assistance. • City of Port Lions Fire Station Insulation Estimated Project Cost $35,000 Funding Acquired $0 Needed Funds $35,000 The fire station in the second-class City of Port Lions is not insulation which necessitates that the fire truck be left empty of water during the winter months when temperatures drop below freezing and limits the time and ability to respond to a fire related emergency. The City of Port Lions requests funds for purchase and installation of building insulation materials. • Kodiak Island Borough Fire and Rescue: Phase 1 Design and Engineering Re: Fire Station Renovation and Expansion FY25 Estimated Project Cost $312,000 The proposed project shall include the following in Phase 1: Full design and engineer workup to include shovel ready plan set and accompanying specification documents. The scope of the project may include renovation of certain existing areas of the original 1983 fire station building and training facility addition. The scope may further include expanding the footprint and square footage of the original 1983 fire station building to include additional space capable of sustaining the current response and service delivery model in keeping with an established 30 year strategic/fiscal plan. The expansion shall include additional square footage to the rear of the existing kitchen, lavatory, and mechanical space and second floor living space. The expansion may include space designed to support additional/upgraded lavatories and shower facilities along with sleeping accommodations for volunteer duty officers/firefighters and additional living and storage space to the second floor. Necessary code compliance work to the existing structure shall be included in this project scope. • Kodiak Community Health Center Expansion Estimated Total Project Cost $25,850,000 Funding acquired $8,317,901 Estimated Design Cost $1,200,000 Needed Funds $1,200,000 The Kodiak Community Health Center (KCHC) is currently housed within the Kodiak Island Borough owned hospital facility and co -located with Providence Kodiak Island Medical Center. KCHC is in need of increasing the clinic space and is planning an expansion project. Due to various changes in the community in the past five years, patient and provider counts have increased and pushed this organization to the maximum of their space limitations. Additionally, an increase in patient population is expected to coincide with a local US Coast Guard base increase in employees and their families in the next few years. Resolution No. FY2025-16 Page 4 of 7 Page 44 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 180 With appropriate funding KCHC proposes to expand and improve the clinic space and 181 continue to provide needed services in the Kodiak community. KCHC has acquired funding in 182 the amount of $8.3 million toward this project, however design activities are not eligible within 183 this funding. KCHC is seeking design funds in order to move forward with the project and will 184 continue fund raising efforts for the balance needed. 185 186 City of Old Harbor Septic Tank Replacement 187 Estimated Project Cost $100,000 188 Funding Acquired $0 189 Needed Funds $100,000 190 191 The Kodiak Island Borough supports the City of Old Harbor's request for funding to Install a 192 sewer septic tank in downtown Old Harbor which is a second-class city within the Kodiak 193 Island Borough. 194 195 Community of Karluk Water Tank Installation 196 Estimated Project Cost $250,000 197 Local Funds $0 198 Needed Funds $250,000 199 200 The water holding tank in the community of Karluk has been condemned by the DEC. The 201 Karluk IRA Tribal Council has a new water tank sitting in the Native Village of Karluk. The 202 Kodiak Island Borough supports this request for funds to install the water tank for the water 203 distribution to this community that lies within the Kodiak Island Borough. 204 205 City of Larsen Bay Equipment Repairs and Maintenance 206 Estimated Project Cost $157,000 207 208 The City of Larsen Bay's existing equipment are all needing major parts and pieces maintained 209 and/or replaced. The City currently has a 1996 Caterpillar 12G Grader, a 2001 Caterpillar416 210 backhoe-Ioader4WD, and a 2001 Caterpillar D-4 Dozer. These pieces of equipment are vital 211 to the Community for water lines, power lines, road repairs, and maintenance, and is needed 212 to keep our city going. 213 214 Women's Bay Service District: South Russian Creek Road Repaving FY25 215 Estimated Project Cost $1,842,301.30 216 217 The roadway was originally paved circa 1985 using mostly federal financing under the 218 Intermodal Service Transportation Efficiency Act. Since that time the roadway has been 219 maintained by the Womens Bay Service District with taxes collected from the residents for 220 that purpose. The Service District mill rate is currently 2.5 mils which is the highest of all 221 service districts. The current budget has barely been sufficient to keep roads cleared of snow 222 and ice and also maintain the 12 miles of road in the district. Over the years the maintenance 223 for the South Russian Creek Road paved area has increased as the asphalt has deteriorated 224 and at this time maintenance attempts are becoming futile and exponentially more expensive. 225 The estimate from Brechan Construction, LLC to repave the roadway is $1,842,301.30. If the 226 road is repaved, it would reduce the overall maintenance costs and allow the service district 227 to re -allocate money to other needed projects. Resolution No. FY2025-16 Page 5 of 7 Page 45 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 228 229 City of Port Lions Water Distribution System Replacement 230 Estimated Project Cost $8,000,000 231 Funding Acquired $0.00 232 Needed Funds $8,000,000 233 234 The original water and sewer distribution system for our community was built after the 1964 235 Good Friday earthquake and tsunami forced the displaced residents of Afognak to relocate in 236 what is now known as Port Lions. In 1964, a new system was installed. However, the 237 contractor did not complete the job correctly. Many homes were not connected to the new 238 system and many homes were connected incorrectly. The now connected system is 239 considered aged out because it is over twenty-five years old. The City of Port Lions Public 240 Works crew constantly has a list of leaks and blockages to repair. In some places the system 241 is beyond repair. They are consistently over budget for water and sewer utility due to the 242 unexpected expense of purchasing parts and paying their crew to repair and replace section 243 of the distribution system. The outdated system drastically hinders community expansion 244 efforts. The City of Port Lions is working closely with the Alaska Native Tribal Health 245 Consortium (ANTHC) for replacement project to be included in their funding pipeline as soon 246 as possible. 247 248 City of Larsen Bay: Water Distribution Lines 249 Estimated Project Cost $7,000,000 250 251 The City of Larsen Bay has a problem of leaks in the distribution system. They have a loss of 252 40,000 gallons of water every 24 hours, 7 days a week. They have fixed all the leaks they 253 could find. In the summer, they have a hard time keeping up with the water usage. 254 255 City of Larsen Bay: Upgrade City Hall 256 Estimated Project Cost $700,000 257 258 The City Hall building houses the Senior Center, Teen Center, Library, City Market, and City 259 offices. The building was originally built in 1985 and need numerous repairs. The kitchen in 260 the Senior Center is outdated, and cabinets are falling off. The entire building needs to be 261 rewired, replace light switches, outlets, flooring, windows, and doors. The roof needs repairs 262 and is unstable due to water damage. The inside and outside needs to be completely 263 repainted. The restrooms need to be updated and redesigned. All new plumbing needs to be 264 installed. 265 266 Native Village of Karluk: Karluk Community Food Security Project FY25 267 Estimated Project Cost $139,444 268 269 The community of Karluk is requesting to construct two community greenhouses on land 270 owned by the tribe. The project is clear and significant priority for Karluk as food is limited. 271 Global warming is changing the ocean environment and impacting subsistence. Food is flown 272 to the community by small plane that are often delayed by weather and the cost is prohibitively 273 high and the food is mostly shelf stable, meaning highly processed and not the appropriate 274 food for the tribe. Karluk does not have gasoline for sale so the cost of subsistence has 275 become prohibitively high and harvesting subsistence fish and game by ATV or boat is nearly 276 impossible. 277 278 The Covid-19 pandemic emphasized the importance of food sovereignty for this remote 279 community. During the pandemic, supply chains were interrupted and the price for many Resolution No. FY2025-16 Page 6 of 7 Page 46 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 goods increased greatly. As remote as they are with high costs already, interruptions to supply chains and increased prices were nearly impossible for the village to handle. Because of this, they have renewed their efforts to grow fresh vegetables and fruits as they work to provide consistent and traditional food for the village. The proposed project is to purchase and construct two community greenhouses on land owned by the tribe. The proposed site is Karluk Subdivision Tract C, Plat Number 78-16. The tribe will be responsible for the upkeep and maintenance of the greenhouses. The greenhouses will be constructed with guidance from the Alaska Energy Authority Biomass - Heated Greenhouses: A Handbook for Alaskan Schools and Community Organizations and the University of Alaska Fairbanks Master Gardener program; a Master Gardener assisted Karluk with the development of this proposal. The two greenhouses will be 25' x 48' x 12.5, made with heavy-duty galvanized steel frame and 10 mm double -wall polycarbonate panels, 2 doors and 2double-door gates (one on each end), and an arched design allows wind, snow and hail to slide off. The greenhouse will support a snow load of 480 kg/m (98 pso and is wind -resistant up to 24m/s for high stability. The greenhouse is an expandable design. The greenhouses will use a biomass boiler to heat the interior of the greenhouse each spring when they begin planting. This project will also include the purchase of shelving and supplies including soil, fertilizer, water equipment, pots and stakes. The cost of freight to Karluk from Wasilla and the cost to assemble the greenhouse is also included in the cost estimate. Greenhouses are priced $29,500 each and the boilers are priced at $8432 each. Shelving and supplies is estimated at $3,000. The total cost of materials is $78,864. Freight is estimated at 50% ($39,432) and a contingency is included of 15% to offset any increase in cost ($11,830). Total material cost is estimated at $130,126. The cost of assembling the greenhouse is estimated at 80 hours for three laborers at $35 per hour ($8,400) plus fringe at 10.93% ($918). The total project cost is $139,444. The greenhouse will provide access to fresh healthy food which is at this time either unavailable or prohibitively expensive and will improve the quality of life for all the residents of Karluk. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2025 KODIAK ISLAND BOROUGH Scott Arndt, Borough Mayor VOTES: Ayes: No: Resolution No. FY2025-16 ATTEST: Nova M. Javier, MMC, Borough Clerk Page 7 of 7 Page 47 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 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 42 43 44 45 46 47 48 49 Introduced by: Bronwyn Currie Requested by: P&Z Commission Drafted by: Bronwyn Currie Introduced on: 7/10/2024 Adopted on: 9/18/2024 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2025-01 A RESOLUTION OF THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION RECOMMENDING A CAPITAL IMPROVEMENT PROJECTS PRIORITY LIST FOR FY 2025-29 WHEREAS, the Kodiak Island Borough represents approximately 12,721 residents of the Kodiak Island Archipelago living in six incorporated cities and one community governed by a tribal council government per the Alaska Department of Labor and Work Force Developmnet; and WHEREAS, a Borough -wide capital improvement program is adopted annually by the Kodiak Island Borough Assembly with recommendations from the Planning & Zoning Commission. This list identifies the major needs of the island community for the next five years; and WHEREAS, THE Kodiak island Borough identifies priority projects to be submitted to the Alaska State legislative delegation and the Federal legislative delegation when applying for grants; NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Planning and Zoning Commission recommends the following capital improvement projects, in order of priority, for adoption into the Kodiak Island Borough FY 2025-2029 CIP list of Capital Projects: 1. Kodiak Wastewater Treatment Plant Facility Estimated Project Cost $1,900,000 Funding Acquired $100,000 Needed Funds $1,800,000 The City of Kodiak provides water and sewer services to Kodiak Island Borough residences and business that are located adjacent to City of Kodiak boundaries. The City of Kodiak Treatment Plant operates under an Alaskan Department of Environmental Conservation (ADEC) APDES permits. The first phase of a larger project to upgrade the City of Kodiak Wastewater Treatment Plant was to evaluate the facility for immediate system's needs. The last major maintenance upgrades to the facility was in 1999. The condition and evaluation assessment included all major components within the plant interior and exterior, the outbuildings and three aeration basins; including all mechanical equipment needs. Alaska Pollutant Discharge Elimination System (APDES) permitting requirements were included during this assessment. Included in the facility rebuild assessment is the supervisory control and data acquisition (SCADA) system to interface Kodiak Island Borough, Alaska Resolution No. FY2025-01 Page 1 of 6 Page 48 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 50 with the 34 sewer lift station pumps and waste treatment at the facility. This facility with its 51 labyrinth of connecting sewer lines, directly serves 2667 City of Kodiak and Kodiak 52 Borough households including commercial businesses. The Treatment Plant also serves 53 the U.S. Kodiak Coast Guard Base and the Pacific Spaceport Complex indirectly with our 54 certified laboratory testing and waste disposal; not to mention NOAA vessels, the Alaska 55 Marine Highway vessels and the expanding cruise ship industry stopovers in our Kodiak 56 Harbors. 57 The Kodiak Island Borough supports the City of Kodiak request for Federal funding in the 58 amount of $1.9M to begin design efforts leading to the construction of this critical 59 infrastructure Wastewater Treatment Plant project that will support the wastewater needs 60 of the Community for the next twenty years. 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 2. St. Herman Harbor Infrastructure Replacement Estimated Project Cost: • Phase I & II $16,000,000 • Phase III & IV $40,000,000 • Funding Acquired $1,800,000 • Needed State Funds $5,000,000 The City of Kodiak is the owner of the two largest harbors in the Kodiak Island Borough, one of those harbors, 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 over 40 years. The State of Alaska turned over all state-owned facilities in St. Harman Harbor to the City of Kodiak in 1999. The facility provides safe moorage for more than 400 vessels from all over Alaska and the West Coast. Except for a few minor upgrades overthe years, the original float system is beyond its useful life and is in critical need of replacement. The proposed project would result in the reconstruction of St. Harman 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 saltwater 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 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. These floats contain electrical pedestals, fire suppression water lines, safety ladders and supply water. In 2022, the City contracted with PND Engineers, Inc. (PND) to prepare a St. Harmon Harbor Planning and Scoping Report that includes concept harbor layouts, cost estimates and construction phasing recommendations. The Kodiak Island Borough supports the City of Kodiak request of $16 million to complete the first two phases. Phases III & IV estimated project development cost is approximately $40,000,000. Modernizing and expanding the 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. 3. Service Area No. 1 Road Improvements and Paving Estimated Project Cost $6,000,000 Local Funds $1,200,000 Needed Funds $4,800,000 This project addresses the on -going need to improve portions of the roads in the Kodiak Island Borough's Road services areas: Service Area No. 1, Service Area, Bay View Road Service Area, and Monashka Bay Road Service Area. These roads connect residential neighborhoods with the greater Kodiak Community. Kodiak Island Borough, Alaska Resolution No. FY2025-01 Page 2 of 6 Page 49 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 102 Paving projects will address main thoroughfares or busy neighborhood roads. 103 Improvements to major drainage courses, installation of guard rails, and other identified 104 road improvement needs may also be addressed with this funding. 105 Priorities for expenditure of these funds are determined by the road service area boards. 106 Local contributions to road improvements may be funded through local improvement 107 districts where those in the district are taxed a proportion of the project cost. 108 109 4. Hospital Facility Sterilizer and Boiler Replacement 110 Estimated Project Cost: $10,000,000 111 • Funding Acquired $0.00 112 • Needed Funds $10,000,000 113 The Kodiak Island Borough owned hospital facility boilers and associated system 114 components are aging along with the facility. The system components that been identified 1.15 for major repair or replacement include the oil -fired boilers, chiller unit, reverse osmosis 116 water system, steam generation equipment and sterilization equipment are in 117 consideration. The oil -fired boilers provide the major hydronic heating component for 118 several associated systems at the hospital facility. They include the production of facility 119 heat, hot water and the hot water component for conversion to steam via a steam 120 generator that is distributed to the sterilizers required for the hospital operations. The 121 sterilizer equipment has been maintained at an operational level. Due to the age of the 122 existing equipment, increased frequent failures associated with the steam generator and 123 sterilization equipment has affected the operational capacity of the hospital to the point 124 where operating room availability is managed at times with the functional capacity of the facility to 125 ensure property sterilized equipment. All of the system components need to be evaluated for 126 replacement timeframes as and of the individual component failures may lead to services being 127 suspended at the hospital facility. 128 12-9 5. City of Larsen Bay Reservoir Spill Way 130 Estimated Project Cost $1,200,000 131 Funding Acquired $0.00 132 Needed Funds $1,200,000 133 The water reservoir spill way in the community of Larsen Bay is eroding and is nearing 134 failure. This reservoir provides drinking water and hydroelectric power to the residents in 135 the second-class city on Kodiak Island's west side. The Kodiak Island Borough supports 136 the second-class City of Larsen Bay's request for funding assistance. 137 138 6. City of Port Lions Fire Station Insulation 139 Estimated Project Cost $36,000 140 Funding Acquired $0.00 141 Needed Funds $36,000 142 The fire station in the second-class City of Port Lions is not insulated which necessitates 143 that the fire truck be left empty of water during the winter months when temperatures drop 144 below freezing and limits the time and ability to response to a fire related emergency. The 145 City of Port Lions requests funds for purchase and installation of building insulation 146 materials. 147 148 7. Kodiak Island Borough Fire & Rescue: Phase 1 Design & Engineering RE: Fire 149 Station Renovation & Expansion FY25 150 Estimated Project Cost $312,000.00 151 The proposed project shall include the following in Phase 1. Full design and engineer 152 workup to include shovel ready plan set and accompanying specification documents. The 153 scope of the project may include renovation of certain existing areas of the original 1983 154 fire station building and training facility addition. The scope may further include expanding 155 the footprint and square footage of the original 1983 fire station building to include 156 additional space capable of sustaining the current response and service delivery model in Kodiak Island Borough, Alaska Resolution No. FY2025-01 Page 3of6 Page 50 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 157 keeping with an established 30 year strategic/fiscal plan. The expansion shall include 158 additional square footage to the rear of the existing kitchen, lavatory, & mechanical space 159 and second floor living space. The expansion may include space designed to support 160 additional/upgraded lavatories & shower facilities along with sleeping accommodations for 161 volunteer duty officers/firefighters & additional living and storage space to the second floor. 162 Necessary code compliance work to the existing structure shall be included in this project 163 scope. 164 165 8. Kodiak Community Health Center Expansion 166 Estimated Total Project Cost $25.850,000 167 Funding Acquired $8,317,901 168 Estimated Design Cost $1,200,000 169 Needed Funds $1,200,000 170 The Kodiak Community Health Center (KCHC) is currently housed within the Kodiak Island 171 Borough owned hospital facility and co -located with Providence Kodiak Island Medical 172 Center. KCHC is in need of increasing the clinic space and is planning an expansion 173 project. Due to various changes in the community in the past five years, patient and 174 provider counts have increased and pushed this organization to the maximum of their 175 space limitations. Additionally, an increased in -patient population is expected to coincide 176 with a local US Coast Guard base increase in employees and their families in the next few 177 years. 178 With appropriate funding KCHC proposes to expand and improve the clinic space and 179 continue to provide needed services in the Kodiak Community. KCHC has acquired 180 funding in the amount of $8.3 million toward this project, however design activities are not 181 eligible within this funding. KCHC is seeking design funds in order to move forward with the 182 project and will continue fund raising efforts for the balance needed. 183 184 9. City of Old Harbor Septic Tank Replacement 185 Estimated Project Cost $100,000 186 Funding Acquired $0.00 187 Needed Funds $100,000 188 The Kodiak Island Borough supports the City of Old Harbor's request for funding to install a 189 sewer septic tank in downtown OId Harbor which is a second-class city within the Kodiak 190 Island Borough. 191 192 10. Community of Karluk Water Tank Installation 193 Estimated Project Cost $250,000 194 Local Funds $0.00 195 Needed Funds $250,000 196 The water holding tank in the community of Karluk has been condemned by the DEC. The 197 Karluk IRA Tribal Council has a new water tank sitting in the Native Village of Karluk. The 198 Kodiak Island Borough supports this request for funds to install the water tank for the water 199 distribution to this community that lies within the Kodiak Island Borough. 200 201 11. City of Larsen Bay: Equipment Repairs and Maintenance 202 Estimated Project Cost $157,000.00 203 The City of Larsen Bay's existing equipment are all needing major parts and pieces 204 maintained and/or replaced. The City currently has a 1996 Caterpillar 12G Grader, a 2001 205 Caterpillar 416 backhoe-loader 4WD, and a 2001 Caterpillar D-4 Dozer. These pieces of 206 equipment are vital to the Community for water lines, power lines, road repairs, and 207 maintenance, and is needed to keep our city going. 208 209 12. Women's Bay Service District: South Russian Creek Road Repaving FY25 210 Estimated Project Cost $1,842,301.30 211 The roadway was originally paved circa 1985 using mostly federal financing under the Kodiak Island Borough, Alaska Resolution No. FY2025-01 Page 4of6 Page 51 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 212 Intermodal Service Transportation Efficiency Act. Since that time the roadway has been 213 maintained by the Womens Bay Service District with taxes collected from the residents for 214 that purpose. The Service District mill rate is currently 2.5 mils which is the highest of all 215 service districts. The current budget has barely been sufficient to keep roads cleared of 216 snow and ice and also maintain the 12 miles of road in the district. Over the years the 217 maintenance for the South Russian Creek Road paved area has increased as the asphalt 218 has deteriorated and at this time maintenance attempts are becoming futile and 219 exponentially more expensive. The estimate from Brechans Construction, LLC to repave 220 the Roadway is $1,842,301.30 (see attached estimate). If the road is repaved, it would 221 reduce the overall maintenance costs and allow the service district to re -allocate money to 222 other needed projects. 223 224 13. City of Port Lions Water Distribution System Replacement 225 Estimated Project Cost $8,000,000 226 Funding Acquired $0.00 227 Needed Funds $8,000,000 228 The original water and sewer distribution system for our community was built after the 1964 229 Good Friday earthquake and tsunami forced the displaced residents of Afognak to relocate 230 in what is now known as Port Lions. In 1964 a new system was installed. However, the 231 contractor did not complete the job correctly. Many homes were not connected to the new 232 system and many homes were connected incorrectly. The now connected system is 233 considered aged out because it is over twenty-five (25) years old. The City of Port Lions 234 Public Works crew constantly has a list of leaks and blockages to repair. In some places 235 the system is beyond repair. We are consistently over budget for our water and sewer 236 utility due to the unexpected expense of purchasing parts and paying our crew to repair 237 and replace section of the distribution system. The outdated system drastically hinders 238 community expansion efforts. The City of Port Lions are working closely with the Alaska 239 Native Tribal Health Consortium (ANTHC) for replacement project to be included in their 240 funding pipeline as soon as passible. 241 242 14. City of Larsen Bay: Water Distribution Lines 243 Estimated Project Cost $7,000,000.00 244 The City of Larsen Bay has a problem of leaks in the distribution system. We have a loss of 245 40,000 gallons of water every 24 hours, 7 days a week. We have fixed all the leaks we 246 could find. In the summer we have a hard time keeping up with the water usage. 247 248 15. City of Larsen Bay: Upgrade City Hall 249 Estimated Project Cost $700,000 250 The City Hall building houses the Senior Center, Teen Center, Library, City Market, and 251 City offices. The building was originally built in 1985 and need numerous repairs. The 252 kitchen in the Senior Center is outdated, and cabinets are falling off. The entire building 253 needs to be rewired, replace light switches, outlets, flooring, windows, and doors. The roof 254 needs repairs and is unstable due to water damage. The inside and outside needs to be 255 completely repainted. The restrooms need to be updated and redesigned. All new 256 plumbing needs to be installed. 257 258 16. Native Village of Karluk: Karluk Community Food Security Project FY25 259 Estimated Project Cost $139,444.00 260 The community of Karluk is requesting to construct two community greenhouses on land 261 owned by the tribe (map attached). The project is clear and significant priority for Karluk as 262 food is limited. Global warming is changing the ocean environment and impacting 263 subsistence. Food is flown to the community by small plane that are often delayed by 264 weather and the cost is prohibitively high and the food is mostly shelf stable, meaning 265 highly processed and not the appropriate food for our tribe. Karluk does not have gasoline 266 for sale so the cost of subsistence has become prohibitively high and harvesting Kodiak Island Borough, Alaska Resolution No. FY2025-01 Page 5 of 6 Page 52 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 267 subsistence fish and game by ATV or boat is nearly impossible. The Covid-19 pandemic 268 emphasized the importance of food sovereignty for our remote community. During the 269 pandemic, supply chains were interrupted and the price for many goods increased greatly. 270 As remote as we are with high costs already, interruptions to supply chains and increased 271 prices were nearly impossible for our village to handle. Because of this, we have renewed 272 our efforts to grow fresh vegetables and fruits as we work to provide consistent and 273 traditional food for our village. The proposed project is to purchase and construct two 274 community greenhouses on land owned by the trib. The proposed site is Karluk 275 Subdivision Tract C, Plat Number 78-16. The tribe will be responsible for the upkeep and 276 maintenance of the greenhouses. The greenhouses will be constructed with guidance from 277 the Alaska Energy Authority Biomass -Heated Greenhouses: A Handbook for Alaskan 278 Schools and Community Organizations and the University of Alaska Fairbanks Master 279 Gardener program; a Master Gardener assisted Karluk with the development of this 280 proposal. The two greenhouses will be 25' x 48' x 12.5', made with heavy-duty galvanized 281 steel frame and 10 mm double -wall polycarbonate panels, 2 doors and 2double-door gates 282 (one on each end), and an arched design allows wind, snow and hail to slide off. The 283 greenhouse will support a snow load of 480 kg/m (98 psf) and is wind -resistant up to 24m/s 284 for high stability. The greenhouse is an expandable design. The greenhouses will use a 285 biomass boiler to heat the interior of the greenhouse each spring when we begin planting. 286 The project will also include the purchase of shelving and supplies including soil, fertilizer, 287 water equipment, pots and stakes. The cost of freight to Karluk from Wasilla and the cost 288 to assemble the greenhouse is also included in the cost estimate. Greenhouses are prices 289 $29,500 each and the boilers are priced at $8432 each. Shelving and supplies is estimated 290 at $3,000. The total cost of materials is $78,864. Freight is estimated at 50% ($39,432) and 291 a contingency is included of 15% to offset any increase in cost ($11,830). 292 Total material cost is estimated at $130,126. The cost of assembling the greenhouse is 293 estimated at 80 hours for three laborers at $35 per hour ($8,400) plus fringe at 10.93% 294 ($918). The total project cost is $139,444. A resolution, a map outlining the location of the 295 site, and quotes are attached. The greenhouse will provide access to fresh healthy food 296 which is at this time either unavailable or prohibitively expensive and will improve the 297 quality of life for all the residents of Karluk. 298 299 300 ADOPTED BY THE PLANNING AND ZONING COMMISSION OF THE KODIAK ISLAND 301 BOROUGH 302 THE 18TH DAY OF SEPTEMBER 2024 303 304 305 306 307 ATTEST: 308 309 310 311 Bronwyn Currie, Permit Technician Kodiak Island Borough, Alaska KODIAK ISLAND BOROUGH Lgg=�n_� Christopher Paulson, Chair Resolution No. FY2025-01 Page 6 of 6 Discussion Of the State And Federal CIP List Resolutions Page 53 of 115 AGENDA ITEM #2.b. 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 42 43 44 45 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2025-17 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING FEDERAL PROJECT AND PROGRAM PRIORITIES FOR FEDERAL FISCAL YEARS 2025 AND 2026 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 Kodiak Island Borough's views and recommendations on priority Federal programs and projects for FY 2026 are as follows: FY 2026 Community Project/Congressionally Directed Spending Requests: The Borough submits the following FY 2026 community project/Congressionally directed spending requests, consistent with guidance issued by the House and Senate Appropriations Committees. • St Hermans Harbor Infrastructure Replacement: St. Hermans Harbor has been a vital harbor 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. Unfortunately, its float system is aged, decrepit, and starting to fail. The City applied for MARAD Port Infrastructure Development Program (PIDP) grant funding for Phase One of the float system replacement project and was awarded funding this past year in the amount of $11.2 million. We thank the Alaska Delegation for its letter of support for the application to the Secretary of Transportation. Pending in FY 2025 Senate appropriations is $10 million in Congressionally Directed Spending (CDS) for the project. We thank Senator Murkowski for requesting these funds and urge their inclusion in the final FY 2025 appropriations bill. These CDS funds combined with the PIDP grant will enable significant progress in the rebuild and upgrade of St. Hermans Harbor. • Russian River Erosion Control Project: Over a number of years, the Russian River has experienced significant erosion due to flooding, shifts in and bifurcation of river channels, and increased sedimentation. This erosion in areas has reached the point where it is damaging and will further damage public and private property in the Bells Flats neighborhood in the Borough. This threat extends to homes, public and private land that borders the Russian River, and a public road which is the only road access into and out of a neighborhood. The Borough needs the Corps' expertise to develop both short and long-term solutions to mitigate this threat to this important and vital community on Kodiak Island. The Corps has informed us that this early study work would cost $200,000 through its Flood Plain Management Services Program. The Borough has indicated its interest with a formal request letter to the Corps; the next step in the process is to request CDS funding from Congress. Resolution No. FY2025-17 Page 1 of 4 Page 54 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 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 85 86 87 88 89 90 91 2. Broadband Service To Rural Areas: Establishing or improving broadband service to the Borough's rural communities has been a high Federal priority for us for many years. Deployment of high-speed broadband to rural areas continued in FY 2025 through a mix of Federal programs 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 State Broadband Grants Program created by the Bipartisan Infrastructure Law. We support continued rollout of these programs in FY 2026 and any broadband applications/projects submitted that would expand or improve service to our Island communities. 3. Groundfish Surveys: Our Federal resolutions over the years have consistently called for maintenance of effort of Federal groundfish trawl surveys in Alaska. This maintenance of effort is needed as part of the Federal science and data -driven fishery management process to establish sustainable groundfish quotas. It has been supported by the Alaska Congressional Delegation for which we are appreciative. This baseline is for six surveys, one of which is dedicated to movement of fish out of historical survey areas. That funding directive is included in the Senate's FY 2025 appropriations bill funding NOAA. We respectfully request that six Alaska groundfish trawl surveys be continued and funded in the final FY 2025 appropriations bill, and for the FY 2026 funding cycle as well. 5. Russian Seafood Import Ban: The dumping of seafood products by Russia into the U.S. and international markets has driven down the price of Alaska seafood and hurt Alaska harvesters, processors and fisheries -dependent communities like Kodiak. In March of 2023, the Biden Administration issued an executive order to ban direct Russian seafood imports into the U.S. as part of its sanctions for the Russian invasion of Ukraine. Unfortunately, Russia succeeded in bypassing the sanctions by routing its seafood through reprocessing in and export from China to the U.S. To tighten this loophole, in the Biden Administration issued another Executive Order to further ban Russian imports even if it is processed and sold from another country. Lastly, after a group of Alaska fishing interests attended a roundtable meeting organized by Senator Sullivan this summer with the Secretary of Commerce, the Biden Administration raised the issue at the next European Union ministerial to urge E.U. member nations to similarly ban Russian seafood imports. The E.U. issued a communique after the meeting indicated that it would examine the issue in greater depth. We thank the Delegation for earlier introducing legislation to ban these dumping efforts and for pressing the Biden Administration to take action and urge that continuity of effort extended into the new Trump Administration. Over the coming year, we encourage the Delegation to remain vigilant to ensure that Russia does not find other ways to bypass the ban through re-routing seafood through other third -party countries. 6. Fisheries Disaster Relief: Congress has enacted fisheries disaster relief reform legislation -- the Fishery Resource Disasters Improvement Act -- that qualifies local government loss of raw fish tax revenues as eligible for reimbursement from future Federal fisheries disaster relief funding. This provision is not mandatory and would require the State of Alaska to include foregone fish taxes as part of its fisheries disaster relief expenditure plans submitted to NOAA. We request the Delegation continue to support adequate appropriations for recent and future Resolution No. FY2025-17 Page 2 of 4 Page 55 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 92 approved disaster declarations impacting Kodiak's fisheries. We thank the Delegation for its 93 support of $300 million in fisheries disaster relief included in the recently enacted Continuing 94 Resolution. 95 96 7. North Pacific Observer Program: Observers are an important part of managing the halibut 97 and groundfish fisheries in the Gulf of Alaska. Gulf of Alaska fishery participants pay into the 98 North Pacific Observer Fund to cover the costs of "partial coverage" for Gulf fishing sectors 99 but there has been a shortfall in funding to cover observer costs in recent years. While 100 Congress did not include the increase in funding for the program that the Borough requested 101 in the FY 2025 appropriations bills, it did include instructions to mitigate the cost impacts on 102 the small vessel fixed gear fleet while the fishery undergoes the transition to electronic 103 monitoring and reporting. We request that an additional $2 million in funding be provided in 104 FY 2026 above base funding along with carryover of language concerning the cost -burdens 105 on the fleet. 106 107 8. U.S. Coast Guard Base -- Kodiak: In recent years, the Coast Guard and Congress has 108 dedicated significant funding for base infrastructure projects, including housing and shoreside 109 infrastructure, to be ready for homeporting the two new each Offshore Patrol and Fast 110 Response Cutters. We very much appreciate the Coast Guard's and Delegation's strong 111 support for these projects and the cutters' homeporting in Kodiak. The Borough is also very 112 interested in Kodiak being a homeport for a new Polar Security Cutter(s) — the Coast Guard's 113 next generation icebreaker -- but we recognize that water depth in Womens Bay cannot 114 support such a deep draft vessel. The Borough supports other locations for a possible 115 icebreaker including an effort by the City to seek Army Corps of Engineers construction of a 116 breakwater and future deep draft dock off Near Island. We urge the Delegation to support that 117 project and be an advocate for Kodiak as a future homeport for a PSC(s). We recognize that 118 there are cost increases and delays in the PSC program, which is not unusual in new major 119 Federal procurements, but appreciate the Delegation's continued support for PSC funding. 120 Lastly, the Senate version of the FY 2025 National Defense Authorization Act (NDAA) again 121 included a provision that would have included the Coast Guard in the Defense Community 122 Infrastructure Program, thus making local infrastructure projects like renovating our 123 elementary school eligible for DCIP funding, but unfortunately the provision was again 124 dropped from the final bill due to opposition from the House Armed Services Committees over 125 use of DOD funding for projects from another Department. We urge the Delegation to revive 126 the effort for FY 2026, either as part of the FY 2026 NDAA, or creation of a stand-alone Coast 127 Guard project dedicated program as part of the biennial Coast Guard Authorization Bill. 128 129 9. Payment -In -Lieu -of -Taxes (PILT): PILT is a very important revenue source to the Borough, 130 given that there are over 2.8 million acres removed by the Federal Government from local 131 taxation within our boundaries. This is land that would otherwise be available to the private 132 sector to develop, creating jobs for the residents of Kodiak and our rural Kodiak Island 133 communities. PILT funds supplement Borough resources to provide basic social services, 134 including medical facilities, emergency fire and rescue services, roads, and schools to our 135 island communities. The pending FY 2025 appropriations bills provide full funding for PILT. 136 We thank the Delegation for its long-standing support for PILT and urge continued support for 137 full funding in FY 2026. Resolution No. FY2025-17 Page 3 of 4 Page 56 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2.b. 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 10. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): While not as significant as PILT, the National Wildlife Refuge Fund is a critical source of replacement revenue to communities like ours that have the presence of a large Federal wildlife refuge within their boundaries. The Obama, Trump, and Biden Administrations have all sought to terminate appropriations for the Fund but thankfully Congress has rejected these requests, including level funding for the Fund in the pending FY 2025 appropriations bills. The Kodiak Island Borough opposes the termination of appropriations for this important program. The Borough thanks the Delegation for its on -going support and seeks continued level funding in FY 2026. 11. Essential Air Service (EAS): The Borough's communities are highly reliant on the EAS program, its support to air carriers and its requirements for island community service that otherwise wouldn't exist or would be provided at much higher rates. In 2024, Congress passed a five-year reauthorization of the FAA, including a five-year extension of EAS. We thank the AK Congressional Delegation for its support of this important legislation and historical support for EAS. The Borough wants to reiterate the need for that support in annual appropriations for the program and requests full funding in FY 2026. 12. U.S. Military Arctic Presence: The Borough appreciates the Delegation's sustained effort at urging and directing the Department of Defense to further examine the Arctic's strategic interest to the U.S. Russia and China continue to aggressively push their security interests in the region as evidenced in recent years by the joint convoys of their military vessels that entered the U.S. EEZ in the Bering Sea as well as aggressive Russian flight incursions into Alaska -area air space. 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 DAY OF , 2025. KODIAK ISLAND BOROUGH Scott Arndt, Borough Mayor VOTES: Ayes: Noes: Resolution No. FY2025-17 ATTEST: Nova M. Javier, MMC, Borough Clerk Page 4 of 4 Page 57 of 115 Discussion Of the State And Federal CIP List Resolutions AGENDA ITEM #2. c. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 13, 2025 ASSEMBLY WORK SESSION SUBJECT: Discuss The Impacts Of The North Star Elementary School Closure ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: DISCUSSION: On Wednesday, January 22, 2025, the Kodiak Island Borough School District voted to consolidate North Star Elementary into Main Elementary and East Elementary. There are two projects needing to be addressed due to this vote: 1. Jensen Yorba Wall's design plans for the North Star Elementary roof 2. The inclusion of the sidewalk portion of the Otmeloi Road project (Safe Routes to Schools) ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: The Superintendent is meeting with KIBSD Administrative staff on Thursday, February 13, 2025, to discuss the timeline of removing KIBSD belongings from the North Star building. There is an additional KIBSD Board of Education special meeting and work session scheduled on February13, 2025. Kodiak Island Borough Discuss The Impacts Of The North Star Elementary School Closure Page 58 of 115 AGENDA ITEM #2.c. From: Miller, Kirk D (DOT) Sent: Friday, February 7, 2025 4:38 PM To: dconrad@kodiakak.us Cc: Brown, James L (DOT) <james.brown@alaska.gov> Subject: RE: North Star Elementary Dave, As you are aware, we have been struggling on Otmeloi project scope and funding limitations as preliminary engineering work has progressed. I have stepped in here to help resolve. Reference attached memo which reflects our latest engineering cost work which we have broken into three sections (Rez Drive to Mallard, Mallard and Mallard to Monashka). We definitely have a budget problem and have been looking at scope options to reduce cost. Our current programmed construction funding limit is $7.8 million. We have two choices, find more federal or state funding or reduce the scope of this project. Additional state funding is likely out of the question at our level and our federal programs are currently maximized to the limits with other pressing statewide needs. The attached memo reflects original scope intentions with respect to pedestrian amenities (separated sidewalk) from Rez to Mallard and Mallard. The remainder of Otmeloi from Mallard to Monashka reflects a reduced width/cost option consisting of 5' paved shoulders on both sides. It seems to us that pedestrian use warranting wider or separated pedestrian walkways in this section of Otmeloi are of lesser need than the portion from Rez Drive to the school. If funding were not an issue, we would not have proposed this change and would have maintained the original scope. We recognize that the original MOA (executed in 2021) includes Mallard. However, considering the recent school closure and this road is not within DOT&PF inventory, we are asking whether we can completely eliminate reconstruction of Mallard at this time. We would be willing to design and bid Mallard as an additive alternate. Could the Borough supply funding for the reconstruction of Mallard? If Mallard is eliminated, the total cost is still on the order of $10 million or a deficit of $2.2 million. We may be able to cover this amount or may need to look at further value engineering options to reduce the cost under $8 million. Whether we will be successful in increasing the budget for this project is highly uncertain at this time but we will make those attempts. The current cost estimate work includes an estimating contingency of 20% but does not reflect inflation to 2027 or 2028 when this project would likely be physically constructed. We could be in further budget deficit unless construction prices stabilize or go down. In any event, I think we need a meeting with the Borough to further discuss options to move forward. We would obviously wish to focus on Otmeloi and still facilitate the road ownership and operation transfer per the original MOA. Please feel free to share this information with Borough management, etc. and/or let us know a date or time at which we can meet and confer. Thank you for your continued attention and assistance on this project. This one has proven to be difficult to get to the finish line for some time! Kirk Miller, PE SE Preconstruction Engineer State of Alaska, DOT&PF/SouthcoastRegion Page 59 of 115 Discuss The Impacts Of The North Star Elementary School Closure AGENDA ITEM #2.c. 6860 Glacier Highway Juneau, AK 99801 Ph: (907) 465-1215 Fax: (907) 465-4414 ki rk. m i Ile r(da la s ka.gov Page 60 of 115 Discuss The Impacts Of The North Star Elementary School Closure AGENDA ITEM #2.c. F#41 KINNLEY ENGINEERING,TO: James Brown, P.E. Design Group Chief If Project Manager FROM: Garrett Thatcher, P.E. Will Webb P.E., PTOE Randy Kinney, P.E., PTOE DATE: February 6, 2025 SUBJECT: Pre -Environmental Review - Alternative 8 Summary Kodiak: Otmeloi Way Reconstruction, Z687130000 1.0 Purpose MEMORANDUM The proposed Kodiak: Otmeloi Way Reconstruction Project involves reconstructing Otmeloi Way and 560-feet of Mallard Way adjacent to North Star Elementary School. Kinney Engineering was asked to evaluate alternative design concepts to save cost on the project. This memo details scope and cost considerations for Alternative 8 which was evaluated as part of the cost savings effort. 2.0 Alternative 8 Description Scope: Alternative 8: This alternative brings both Otmeloi Way and Mallard Way to "new construction" standards including the construction of new asphalt paved driving surface. The alternative also corrects various drainage issues along both corridors to protect the new paved surface. A 5-ft wide raised sidewalk is proposed for the south side of Otmeloi Way between Rezanoff Drive and Mallard Way. West of Mallard Way the sidewalk is omitted in favor of wider 5-ft shoulders which extend to Monashka Bay Road. Mallard Way includes 9-ft paved driving lanes and 2-ft paved shoulders. Approximately 160-If of attached raised sidewalk is provided along Mallard Way between Otmeloi Way and Northstar Elementary's on -site sidewalk. Typical sections for each segment are provided below: 3' GRAVEL 5' 0.5' GRAVEL SMOULDER 10' LANE 10' LANE s' 2' SIDEWALK SMOULDER ` EXISTING GROUND PROII urouT POINT �21 2% 1.5 � 3' ti, \ ///-. S ' � 5 3. '. , � SEE SECTION T ROLLED FILL J CURB k GUTTER OTMEL01 WAY - RAISED SIDEWALK REZANOPE DRIVE TO MALLARD WAY Page 61 of 115 Discuss The Impacts Of The North Star Elementary School Closure AGENDA ITEM #2. c. Cost Reduction Alternatives Kodiak: Otmeloi Way Reconstruction 2' s' To' LANE � t0UNE 5' 2' EXISTING GROUND ' PROFILE lAYOVT POINT ` FINISHED GRADE 4:1 \ 2Xy OTMEL01 WAY — 5' SHOULDERS MALLARD WAY TO MONASNRA BAY ROAD 5' EXISTING GROUND--,,, - _ - - 2% 1 / i i i � ROLLED CURB h GUTTER MALLARD WAY — W/ RAISED SIDEWALK MALLARD WAY TO NORTHSTAR ELEMENTARY GUARDRAIL - 2' FINISHED GRADE 21 2y Ex1571NG GROUND � - - - - - - - _ _ 1;\ 4:T / MALLARD WAY — W/O SIDEWALK NORTHSTAR ELEMENTARY TO END OF PROJECT Page 2 Page 62 of 115 Discuss The Impacts Of The North Star Elementary School Closure AGENDA ITEM #2.c. Cost Reduction Alternatives Kodiak: Otmeloi Way Reconstruction Cost: A Summary of cost by road segment is provided below: Page 3 Alternative 8 Summary Construction Segment "O" Otmeloi Way "O" Otmeloi Way "M" Mallard Way Limits Rezanoff Dr. to Mallard Way Mallard Way to Monashka Bay Rd Original Whole Project Typical Raised Sidewalk 10, & 5' 9' & 2' Cost Summary Total Base Construction Cost $ 2,800,000 $ 2,954,000 $ 604,494 $ 6,358,494 Construction Engineering(22.3%) $ 625,000 $ 659,000 $ 135,000 $ 1,419,000 Utility Relocation $ 352,700 $ 482,800 $ - $ 835,500 ICAP (6.35%) $ 240,000 $ 261,000 $ 47,000 $ 548,000 Conti nge n cy (20%) $ 804,000 $ 872,000 $ 158,000 $ 1,834,000 Sub -Total $ 4,822,000 $ 5,229,000 $ 945,000 $ 10,996,000 Page 63 of 115 Discuss The Impacts Of The North Star Elementary School Closure AGENDA ITEM #4.a. Kodiak Island Borough /'I OFFICE of the MANAGER y 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9301 TO: Kodiak Island Borough Assembly FROM: Aimee Williams, Borough Manager RE: Manager's Report, February 13, 2025 Manager's Department Russian Riverbank Stabilization KIB is continuing to work with residents and the National Resources Conservation Service to address concerns along the riverbank. There is an emergency program that helps folks out who have had major land loss due to a major weather event. The homeowner would have to have KIB sponsor them, and their report of loss would have to be filed within sixty days. Administrative Official Assessor Seema Garoutte will be the Administrative Official for the February 20'h and March 6th regular meetings. PWSRCAC Met with representatives from Kodiak and Prince William Sound Regional Citizens Advisory Council to develop a methodology to bring SERVS public outreach training in Kodiak. Kodiak does not have the type of passenger vessels that other communities have and so alternate solutions must be developed. Charitable Attended a meeting about the interpretation of Alaska State code and the use of the word "charitable". Both lawyers and assessors spoke to how the the word was defined in their jurisdictions. STR and Accommodations Tax Both Finance and Community Development are working on updating literature for the public to have about short term rentals and registering and remitting accommodations tax. AGENDA ITEM #4.a. HB60 Received an update from AML to go over HB 60. This is a bill which would require school districts and municipality owned hospitals to purchase their agricultural goods and seafood from local (Alaskan) sources. The summary from AML is attached and has been shared with the Superintendent. Projects Organization E&F staff worked with Jensen Yorba Wall this week to list and prioritize projects that are both currently being worked on and will be worked on in the upcoming years. Staff organized projects by: • The current level of design for each project • JYW s level of involvement in the design process • The engineering firm primarily responsible for the design • The anticipated design year • The proposed bid year • The potential construction year • ROMs for any of the projects that you have already been tasked with providing a cost estimate Additionally, for projects that have outstanding proposals, the projects are organized by: • JYW s anticipated level of involvement in the design process • The anticipated engineering firm or firms primarily responsible for the design • The anticipated design year Current Recruitments • Temporary Laborer • Full-time laborer Finance Department 2024 Foreclosure Process The Annual Notice of Foreclosure list will be distributed in the local newspaper once a week for four weeks beginning February 21 S'. Please contact the finance department for an updated payoff amount. Property Assessment and Taxation Implementation Project Staff is back to regularly scheduled meetings with the Tyler Implementation team. Main focus is still with the Assessing department and the project is currently 21 % complete. Go -live date is still expected to be June 25, 2025. Electronic Timesheet Implementation Project Staff is working with the vendor to set up business rules and processes. Go -live date is expected to be mid -April, depending on IT's workload and staffs training availability. AGENDA ITEM #4.a. Community Development Multi -Jurisdiction Multi -Hazard Mitigation Plan Update The final draft of the plan document is scheduled for a review by the Borough Assembly at its work session on February 27, 2025, and regular meeting on March 6, 2025. The final draft of the plan document may be accessed at the following link: https://www.kodiakak.us/DocumentCenterNiew/l 2587/KI B-MJ M H M P-December-2024- v3 Planning & Zoning Commission The Commission met on February 12, 2025, for a work session, which focused on a review of the agenda for the regular meeting scheduled for February 19, 2025. The regular meeting agenda will focus on welcoming new members, voting for the chairperson and vice -chairperson, and recommending to the mayor those members that would like to participate in the Borough Lands Committee and the Borough Parks and Recreation Committee. Assessing Senior Citizen / Disable Veteran exemptions A total of 33 Seniors and 4 Disabled Veterans did not file for 2025. Of those, 6 Senior Citizens and one Disabled Veteran (new file) have provided us with late file applications. 1 Disabled Veteran pulled his exemption this week after determining that he is staying in Florida and wants to claim residency there. We thank him for his service and honesty! Village travel dates for SC/DV exemptions Assessing and KANA will be presenting to the Assembly on February 27tn Values Assessing has not seen a leveling or decrease in values for properties. Sales continue to increase compared to assessed values. Notice of Values will be mailed on February 26, 2025. Appeal period begins February 27, 2025, and runs through March 28, 2025. Alaska Taxable reports the Kodiak Island Borough's assessed rates to be at 79% of the market value. The regulation is to stay above 80% of the market value. IT updated Assessing test database and we began testing values on Feb. 12tn. Testing will run until Feb. 18tn to send Notice of Values to the printer Feb. 19tn Tyler Conversion • Assessing continues to run queries for cleanup and is preparing for file transfer as well as verifying the data in the new system. Assessing has also been tasked with coordinating both Tyler IT and KIB IT for information on where the information lives in our PACS system and where Tyler needs to pull from. • The Apex sketch test is scheduled for the end of January, as of February 12, Tyler has not requested information from Assessing for this portion of the implementation. Assessing's goal is to be able to hand over all the sketches AGENDA ITEM #4.a. before Tyler's testing begins. To date, Assessing has sketched over 4700 properties into the new software, of the just over 5000 properties with improvements. * (yes, staff will be getting a pizza party for completing this huge task manually!) Several issues with the Harris software have popped up during our cleanup. Assessing has 5 open tickets with Harris as of 02/05/2025. 3 of the tickets had to be updated manually by staff because of the NOV process we are going through and no response from Harris on any of the 5 tickets. Engineering and Facilities Multi -Facility Elevator Modernization RFP EF Staff have advertised a Request for Proposals for the Multi -Facility Elevator Modernization Project, which includes the two elevators at PKIMC and one elevator at the Kodiak Middle School. The proposal was sent to the ARB Board for evaluation and is being presented to the Assembly for consideration of approval at the March 6th Regular Meeting. Borough Building Borough building abatement associated with the roof drain piping has been scheduled for 2/14-2/16. Roof drain will be repaired by plumbers and staff after clearance. Borough Building Boiler Installation No updates on this project happened this week. Project continues with the pipe insulation being completed. KIB continues to have difficulty in communicating with the contractor. The heat has been consistent and adequate to date throughout the facility. Mental Health Buildings • The contractor has begun hazardous material sampling and anticipates mobilizing the last week of February and begin demolition the first week of March. • The PCB testing requirements will be an additive cost to this project. • All non -hazardous material will be removed for disposal at the KIB Landfill. KFRC A quote has been obtained for the replacement of the failed seawater pump. Once approved, there will be an 18-20 week lead time on materials. A proposal was requested from Long Technologies for the verification and possible installation of existing gauges, monitors, and flow meters to improve remote monitoring. The replacement of the existing ozone decontamination system will be advertised soon. Staff has discussed with the manager and are reviewing the package with the engineering consultant prior to advertising to ensure completeness. 4 AGENDA ITEM #4.a. No movement on these GSA items: Awaiting GSA revised contract amount for required water testing. No return contact has been received. The due date for sampling and receipt of data will be extended to reflect the delay. Staff continues to wait for a request for additional electrical circuits have been priced for GSA consideration to accommodate additional chillers for NOAA. Project to be funded on the next fiscal year's budget. Landfill • Baler building tipping floor caulking was applied on 2/8. This project is considered complete and will transition to close-out. • Staff is continuing to investigate the Compliance Order by Consent (COBC) associated with the storm water violations. A well installation RFB was drafted to gather data to inform the cause of the storm water violations. Unfortunately, there were no bidders for the project. Staff is currently working to update the RFB and readvertise. • Staff has applied for AML FY2026 Heavy Equipment Request. There is a 25% match required. • Staff is finishing up the RFP for the Regional Solid Waste Management Plan. Leachate Treatment Plant • Staff is currently working on the installation of the new membranes. • Univar Solutions visited the site to conduct flocculant testing on the waste activated sludge (Process is to get the solids out of the system so they don't buildup) for belt filter press operations. • Ongoing discussions with the engineer, plant manufacturer, and ADEC are focused on improving water quality discharge. KIBSD High School Roof - KIB staff notified KIB E&F staff of multiple roof leaks. KIB staff have initiated a warranty claim and will coordinate the repair efforts with a certified installer. Peterson School Roof — (no change) KIB staff is awaiting a final determination for the final repair of the flashing that failed. Anticipate the warranty work will not be completed until spring. Roof has not had any additional leaks reported. Karluk School UST - ADEC would like a further characterization and delineation to provide more information on the extent of soil contamination and to demonstrate whether groundwater. Staff has reached out to the contracted firm that has previous experience with this site. Service Areas • Follow up meetings with the AKDOL (Department of Labor) will be held on 2/25 to ensure the new contracts are compliant with Wage and Hour regulations. AGENDA ITEM #4.a. • The KIB RSA modifications to the State of Alaska DOT SSHC were sent to the RSA Board Members for review and comment from 2/3-2/7. No comments were made and KIB will post the RSA Specification on the KIB website for use as reference. Information Technology (Changes from the last reporting period are in bold) Policy Development - • IT Network documentation development. • Disaster Recovery Policy development • GIS documentation development State and Local Cyber Security Grant Program (SLCGP) - • Submitted two RFPs for the 2023 Grant awards to KIB to the Grants office in Juneau for approval 1. Immutable Backup and Tape Library upgrade 2. KIB firewall and switch upgrade project Security - • The IT department is developing an approval workflow in our helpdesk software to streamline and document the process for approving user access requests, including the creation and modification of user accounts, email access, and other IT -related permissions. This has been completed and is waiting for the HR representative to return from vacation to train and deploy. • Installed Sophos AV on Women's Bay Fire Department Responder PC Hardware - • Asset tag inventory - 85% completed • IT is working with E&F on redesigning display and camera layout in the KIB Conference room. This has been completed. Network - • IT is working with E&F to deploy wireless network coverage at KFRC in the pump house and the tower filter room. • Also including two new iPads with cellular internet coverage • IT is configuring an iPad for a new Planning and Zoning member • Working on switch configuration backup and configuration repository. GitHub vs another internal solution Administration - • Testing and deploying Windows 11 major update to KIB systems Pushed out Microsoft Service pack 24H2 to all workstations, monitoring progress. AGENDA ITEM #4.a. Software — • Working to patch and update Paradigm WeighPay software. o Completed • Met with Apex Timeclock software staff for deployment work o Ongoing meetings - two a week • Laserfiche: Mitchell is working with Lina Cruz and clerks on workflow updates in Laserfiche o Template is completed • IT is meeting weekly with TylerTech data staff to assist with the PACS migration o Meet with them Weekly, work is ongoing • Updated Human Machine Interface (HMI) pc Rockwell Software at Leachate Treatment Plant to version 15 GIS - • Working on GIS departmental Documentation and policies • Working on migrating on premise map imagery to the ESRI cloud, which would reduce KIB on premise requirements for hosting online KIB maps. • Finished updating Python scripts to version 3.0 used for data uploads to web imagery. • Created maps for the Borough Mayor. • Created maps for the Public by request. Reminders for Budget Discussions for FY26 1. Non-profit use of opioid settlement funds 2. Accommodations tax— Breakdown / Amount in Fund / Regulations about using those funds 3. Consideration of adding more to the junk vehicle removal line item AGENDA ITEM #4.a. NEWS RELEAS] LISA MURKOWSKI UNITED STATES SENATOR ALASKA FOR IMMEDIATE RELEASE February 13, 2025 Contact: Joe Plesha (206.302.8317) Senator Murkowski Announces Extended Deadline for FY26 Appropriations Requests Washington, DC — Today, U.S Senator Lisa Murkowski (R-AK) announced an extended deadline for appropriations requests from Alaskans for programmatic and Congressional Directed Spending for the Fiscal Year 2026 (FY26). The appropriations request portal on her website opened on January 3, 2025, and will now remain open until Friday, February 28, 2025, at 11:59 AKST. CLICK HERE FOR INFORMATION ON SENATOR MURKOWSKI'S FY26 APPROPRIATIONS REQUEST PROCESS Murkowski is making the Appropriations Request Form for FY26 available on her website for interested Alaskans The FY26 appropriations process includes opportunities to request both programmatic funding and Congressionally Directed Spending (CDS), which allows Alaskans to identify and receive federal assistance for their local and state -specific needs. The CDS process accounts for no more than one percent of federal discretionary spending and does not increase overall spending levels. Without this process, many of the federal funds now headed for Alaska would go to other states based on decisions made by unelected bureaucrats in federal departments and agencies, rather than being negotiated and determined by publicly -elected representatives. The annual appropriations process is lengthy, with uncertain timing, and there is no guarantee that CDS requests will be included in federal spending bills. Due to nuanced eligibility criteria and limited available funds, many requests will not move forward, and not all projects chosen to advance will ultimately receive funding The federal budget is currently funded through March 14, 2025, creating uncertainty for FY25 requests that have been included in the Senate's FY25 appropriations bills. If you submitted a project for FY25 that has been included in one of the FY25 appropriations bills, we recommend you reapply for FY26. Prior submissions do not automatically carry over and must be resubmitted for consideration This will ensure that your project will remain in consideration as Congress works to finalize the FY25 appropriations process and turns to FY26. Submitted proposals will be considered by the Senate Appropriations Subcommittees on a bipartisan basis through established criteria. To apply, you must be Alaskan and your project must be in Alaska. The deadline for requests is Friday, February 28, 2025, at 11:59 PM AKST. AGENDA ITEM #4.a. a Kodiak Soil and Water Conservation District 301 Research Ct. Rm. 245, Kodiak, Alaska 99615 Phone: 907-486-5574 Dave Conrad Engineering and Facilities Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 7 February 2025 Invasive species activities conducted by Kodiak Soil and Water Conservation District on Kodiak Island Borough Properties in 2024 KSWCD coordinates with Kodiak Archipelago Cooperative Species Management Area (CISMA) partners and other public and private land managers to incorporate IPM, Early Detection Rapid Response, and Best Management Practices. The Kodiak Island Borough (KIB) is a signatory of the CISMA Memorandum of Understanding and we look forward to continuing our partnership. In 2024, Kodiak Soil and Water Conservation District (KSWCD) conducted surveys, outreach, education, and control of invasive species on properties owned or managed by the Kodiak Island Borough (KIB) as outlined in our Integrated Pest Management (IPM) plan. This past field season, KSWCD mapped orange hawkweed, meadow hawkweed, tansy ragwort, creeping thistle, reed canarygrass, common tansy, and bird's -foot trefoil on KIB-owned lands. KSWCD field crew visited KIB sites from Monashka Bay to Women's Bay. KSWCD has completed all mandatory pesticide use reporting for the 2024 field season and submitted invasive species data to the Alaska Exotic Plants Information Clearinghouse (AKEPIC) for mapping. Approximately 60 personnel hours were spent surveying and treating invasive species on KIB lands in 2024. Additional time was spent planning, compiling and reporting invasive species and pesticide use data. The following maps and associated narrative highlight some locations of invasive species activities conducted in 2024. KSWCD will continue to monitor and treat sites based on our funding abilities and prioritization of each species and site. Highly invasive species and critical control points will be prioritized for actions. In 2024, KSWCD conducted invasive plant surveys and control on KIB properties as outlined in the Integrated Pest Management (IPM) plan. The sites visited in 2024 include: 1. White Sands Beach Area 2. Pillar Creek Beach 3. North Star Elementary 4. Katmai Drive/Sharatin Road 5. Chiniak Bay Elder House 6. Kodiak High School Peterson Elementary 8. Fairgrounds 9. Lake Orbin 10. Bells Flats Tansy Ragwort Site 11. Salonie Creek Range Road Page 1 of 12 Page 72 of 115 e N Bells Flats z e e White Sands Beach ei e 0 a 4 0 01 . r."�Near Island Invasive species sites visited by Kodiak Soil & Water Conservation District, 2024 AGENDA ITEM #4.a. 1. White Sands Beach Area Above: Mapped invasive species locations near the end of Monashka Bay Road, some of which may no longer be present. KSWCD received a report of Orange hawkweed, Hieracium auriantacum (red crosses) and Bull thistle, Cirsium vulgare (purple asterisks) near the Monashka Reservoir in 2023, but KSWCD has not yet surveyed this area. There are few bull thistle reports north of the City of Kodiak on the road system. We recommend removing any bull thistle that emerges, which may involve digging up first year plants or cutting and bagging flower heads of second -year plants to prevent seed spread. Bull thistle plants only live 2 years but their seeds can survive for many years. We recommend herbicide treatment of the orange hawkweed to prevent spread. Orange hawkweed patches in the DOT rights -of -way on the above map were treated under an Alaska Department of Transportation and Public Facilities (DOT&PF) IPM plan and are not included in this report. Page 3 of 12 Page 74 of 115 AGENDA ITEM #4.a. John Wayne Clearing White Sands Beach 2. Pillar Creek Beach Field crews treated orange hawkweed, Hieracium auriantacum infestations with herbicide in the "John Wayne" clearing on KIB lands. John Wayne Clearing appears to be used as a shooting area. Only a few plants were found and treated in 2024, but KSWCD recommends continued monitoring of the site because of its frequent human use and proximity to un-infested natural areas. Left: KSWCD field crew treat orange hawkweed at the John Wayne Clearing, 06/17/2024. Left: Orange hawkweed near White Sands Beach before control, 07/21/2023. Orange hawkweed was found at White Sands Beach for the first time and treated in 2023. Plants were growing at the edge of the tree line, above the high tide line and beach sand. No orange hawkweed was found at this location in 2024, despite several site checks. This site should be considered a high priority site for management due to its proximity to several popular trailheads that have no known orange hawkweed infestations. Left: Orange hawkweed locations near Pillar Creek Beach. Orange crosses represent historical locations, and yellow diamonds represent orange hawkweed found in 2024. Page 75 of 115 AGENDA ITEM #4.a. 3. North Star Elementary Left: Field crew flagging orange hawkweed near Pillar Creek Beach before treatment, 07/22/2024. Orange hawkweed was found growing among the native vegetation near Pillar Creek Beach. Field crew treated all orange hawkweed found in the vicinity. Each year of consecutive treatment, the amount of orange hawkweed has reduced. The herbicide KSWCD uses for orange hawkweed does not kill seeds, and follow-up treatments are usually required for several years until the seed bank dissipates. Left: the purple star represents the creeping thistle location. In 2022, a local resident reported creeping thistle, Cirsium arvense, at this location. Creeping thistle is one of the highest ranked invasive species in Kodiak. Only two plants were found, but it was too late in the season for treatment by our field crew. No creeping thistle was found at this site in 2024. Page 5 of 12 Page 76 of 115 AGENDA ITEM #4.a. 4. Katmai Drive/Sharatin Road Above: Blue diamonds represent meadow hawkweed plants found in 2024. Note: due to imperfect map projections, some points may be a few feet from their true location. Meadow hawkweed is only known from one location on the Kodiak Archipelago: roadsides around the Katmai Drive and Sharatin Road intersection. KSWCD chemically treated all meadow hawkweed plants found in this area in 2024. Each year, the amount of herbicide used to treat this infestation reduces thanks to consistent surveys, flower picking, and treatments. One new patch was found North of the Katmai Drive intersection that was hidden in the alders, and is represented in the map above. KSWCD conducted outreach to home owners in this area to encourage control and reporting if this plant is present on private properties. We do not recommend brushing or mowing the alders and other roadside plants in this area when plants are flowering or seeding, as it may spread seeds and plant materials. Some plants may be obscured by other vegetation even when blooming, so please notify KSWCD of any roadside maintenance in this area prior to conducting work at the site and we may be available to survey and manage plants prior to activities. Plants look very similar to orange hawkweed, though flowers are yellow instead of orange and the plants are often slightly larger. S. Chiniak Bay Elder House Bird's -foot Trefoil, Lotus uliginosus, was found growing under a planted tree at the Providence Chiniak Bay Elder House (elder house) in 2022. KSWCD has documented this species at one other location on the archipelago. These are the only two known occurrences of this species in Alaska and therefore their environmental effects are unknown. It is a close relative of another highly invasive species, Lotus corniculatus. KSWCD received permission to dig it up and removed it in June 2024. The elder house previously had an infestation of creeping thistle in Page 77 of 115 AGENDA ITEM #4.a. one of the gardens. KSWCD spot -treated the plants with herbicide and no creeping thistle has been found at the site in over five years. Left: Field crew pulling a solid mat of Lotus uliginosus at the elder house, 6/6/2024. Right: Field crew pulling creeping thistle in the garden outside of Kodiak High School, 6/6/2024. 6. Kodiak High School KSWCD field crew pulled creeping thistle located in a garden outside of Kodiak High School. Creeping thistle roots can spread as far as 15 feet, and plants can regrow from root fragments. Because of this, pulling is generally not an effective method to eradicate this species, but this infestation is located in a small bed surrounded by concrete, making it more manageable than most creeping thistle infestations. 7. Peterson Elementary Invasive species are pervasive in the large garden in front of the building and also in the small, recently removed garden below the Peterson Elementary sign. Both oxeye daisy and reed canarygrass are present, and both of these species are considered highly invasive in Alaska. For future gardening projects, we recommend anyone planting around the schools to avoid planting aggressive or invasive plants. Some online references such as Alaska Exotic Plants Information Clearinghouse invasive species list (available online) may be helpful, and KSWCD also has an informational poster with Kodiak -friendly garden plants and what not to plant. 8. Fairgrounds KSWCD crew conducted surveys at the fairgrounds on 06/25/2024. This is a high -priority survey site each year as it has the potential for invasive species to be introduced as hay and feed contaminants. The fairgrounds once had a creeping thistle infestation that KSWCD treated and eradicated, and no creeping thistle has been found at the site since 2012. Tall and creeping buttercup are both present at the fairgrounds and impacting grazing. Both species are toxic to livestock, but are too widespread for KSWCD to manage on the road system. In past years there was an infestation of orange hawkweed in one of the back pastures but users have not accepted assistance from KSWCD. That site was not surveyed in 2024 and we do not know its Page 7 of 12 Page 78 of 115 AGENDA ITEM #4.a. current status. This should be a high priority for control by KRSF and/or KIB due to its location near subsistence and agriculture lands that could be impacted by invasive species. Left: Creeping thistle at the fairgrounds, 8/1/2004. Right: Former creeping thistle site, 6/25/2024. 9. Lake Orbin KSWCD crew chemically treated reed canarygrass, Phalaris arunindacea, near the Lake Orbin outlet most recently in 2022. Reed canarygrass is a highly invasive grass that can alter stream hydrology and affect fish habitat. The site was surveyed but not treated in 2024, with only a few plants found near the culvert. KSWCD field crews removed seed heads in 2023 and 2024. 10. Bells Flats Tansy Ragwort Above: Tansy ragwort (yellow symbols) was discovered on KIB-owned parcels in Bells Flats in 2022. Page 79 of 115 AGENDA ITEM #4.a. Tansy Ragwort, Senecio jacobaea, is a highly invasive species that can sicken or kill livestock, pets, and people if consumed. Honey or milk can be contaminated if bees or other livestock utilize these plants. It may also cause skin irritation when handled. KSWCD considers it one of our highest priority species for control. Previous to 2022, only two tansy ragwort sites (approximately 4 plants) had been confirmed (and eradicated) on the archipelago. An infestation of tansy ragwort was found in Bells Flats in 2022. In 2023, a volunteer found and bagged some scattered plants across the road near the pond. No tansy ragwort was found near the pond or the dumpster site in 2024, but field crews did find plants in the gravel pile vicinity once again. KSWCD pulled and bagged all tansy ragwort plants found. Only one flowering plant was found in 2024, but many smaller plants were found at the site. Tansy ragwort plants can produce many thousands of seeds each, and these sites are contaminated with their seeds. Do not use or move this gravel. Continued diligence will be necessary for several years to ensure eradication. However, because it has been found at few sites on Kodiak, KSWCD believes that complete eradication is possible if we can contain it to these known sites while we work to remove it. However, KSWCD and KIB will need to work together to identify the potential source of the infestation and to prevent further spread. Left: Field crew member holds the only mature tansy ragwort plant found at the Bells Flats KIB property in 2024, 10/3/2024. Right: most of the plants found in 2024 were concentrated behind the gravel pit, 10/3/2024. Page 80 of 115 AGENDA ITEM #4.a. 11. Salonie Creek Range Road Above: Current and historic orange hawkweed plant locations on the Salonie Creek Range road. Orange hawkweed plants were treated on the Salonie Creek Range Road in 2023 and 2024. Plants were at the edges of the gravel road. This road is surrounded by wildlife habitat with few invasive species known in this area, making it a high priority for control. Thanks to diligent surveying and treatment in 2023, few plants were found in 2024. A new infestation was found alongside the rifle range after the plants had already gone to seed. Due to the size and density of the infestation, it has Above: Orange hawkweed at Salonie Creek Range, 9/2/2024. likely been present for at least a couple years. This site has never been treated with herbicide, but we recommend treatment due to its proximity to vulnerable habitat and un-infested natural areas. Chiniak No formal surveys were conducted at the Chiniak school or on other KIB Chiniak lands in 2024. rage iv of 12 Page 81 of 115 AGENDA ITEM #4.a. Other High -Risk Sites Some other KIB sites are of special concern due to their high risk of invasion and also high - quality habitat for native species and subsistence harvest. Some of these sites are listed below. Monashka Bay Road has several sites where plants and brush materials are illegally dumped. KSWCD has monitored and controlled these sites when high priority species are found. Beyond the roadsides on KIB lands, the Monashka Bay area consists of mostly wildlife habitat, subsistence, and recreation areas. Monashka Mountain Trail has plenty of suitable habitat for orange hawkweed and other invasive species. Orange hawkweed is present along DOT rights -of -way near the trailhead but we have not conducted any surveys of the trail itself. Termination Point Trail: KIB manages the Leisnoi property containing this trail system. The trails have not been formally surveyed, but KSWCD field crews recreate on those trails during the field season and have never found orange hawkweed on the trails. The oceanside trails with greater sunlight exposure are at a risk of orange hawkweed spread from hikers and animals. Jack & Lee Lakes were not formally surveyed during the 2024 field season. No orange hawkweed has been found by KSWCD or reported to our office on these trails, but it is present on an adjacent private property and has a high risk of spreading to the trails. Heitman Mountain trail and Kashevaroff Mountain trail have also never been formally surveyed by KSCWD crews. These trails both have a high level of native plant diversity and both have abundant suitable habitat for invasive species. A patch of common tansy was found at the Kashevaroff Mountain parking area and reported to KSWCD several years ago. KSWCD treated the infestation and it has not been found in recent years. The Kodiak Fisheries Research Center (KFRC) parking lot and adjacent areas have orange hawkweed and fall dandelion, Leontodon autumnalis (a lower -ranked invasive species). The field crew treated orange hawkweed in the parking area vicinity in 2024. The KFRC building is the location of the KSWCD office as well as offices for Kodiak Regional Aquaculture Association and National Oceanic and Atmospheric Administration, and many employees from these organizations conduct field work and travel to remote places. Controlling invasive species around the KFRC building is a high priority due to the chance that seeds can be transported on vehicles, boots, and gear to vulnerable sites. Recommendations Bull thistle, oxeye daisy, and orange hawkweed continue to be prevalent in areas of the Kodiak Island Borough, and KSWCD lacks the capacity to conduct comprehensive control of these species within areas of large infestations such as within city limits. Best management practices recommend bull thistle plants be pulled or cut down and bagged whenever possible and oxeye daisy be pulled when in loose dirt or treated with herbicide. Orange hawkweed should be Page 11 of 12 Page 82 of 115 AGENDA ITEM #4.a. treated with an appropriate herbicide, as mowing can potentially spread it. Picking flowerheads helps reduce the spread of the seeds but it will not kill the plants. The Bells Flats tansy ragwort site and the Katmai Drive/Sharatin Road meadow hawkweed site both have high potential for complete eradication of those species, but also have the potential to spread if not controlled or if materials are moved from those sites. Please contact KSWCD prior to brushing, mowing, or moving dirt or plant materials from these areas so we may offer guidance on how to mitigate the spread of these invasive plants and offer our assistance when possible. Approximately 60 personnel hours were spent on -the -ground surveying and treating invasive species on KIB lands in 2024. Additional time was spent planning, compiling and reporting invasive species and pesticide use data for an estimated total cost of $2,500. Previously we have received grant funding to provide these services, but funds from those grants will likely be reduced in 2025. KSWCD would welcome any assistance to help our invasive species management activities. Although KSWCD has received funding from the Kodiak Island Borough non-profit program, activities are limited to those listed in the RFP, including education. We utilized some of those funds for invasive species outreach, but that funding cannot be utilized for invasive species control activities. Please contact me if you have any questions or would like additional information. Thank you, Masumi Palhof Programs Assistant masumi@kodiaksoilandwater.org kodiaksoilandwater@email.com Page 12 of 12 Page 83 of 115 AGENDA ITEM #4.a. ALASKA • MUNICIPAL �. • �. LEAGUE y ONE SEALASKA PLAZA, SUITE 200 - JUNEAU, ALASKA 99801 TEL (907) 586-1325 • FAX (907) 463-5480 • WWW.AKML.ORG Municipal Impact Statement for HB 60: Municipal and State Procurement Preferences Overview House Bill 60 proposes a mandate that public institutions, such as municipally -owned hospitals, jails, and other state -funded entities, prioritize the procurement of Alaska -grown agricultural and seafood products. While the bill aims to support local agricultural producers, it has significant implications for municipal operations, fiscal policy, and economic competitiveness. Impacted Communities The bill primarily affects municipalities that operate public institutions reliant on food procurement, including: • Municipal hospitals and assisted living facilities (including Kenai Peninsula Borough, Kodiak Island Borough, City of Valdez, Petersburg Borough, City & Borough of Juneau) • Correctional facilities operated by or in partnership with municipalities (City & Borough of Sitka, Petersburg Borough, Haines Borough, City & Borough of Wrangell, Bristol Bay Borough, City of Homer, City of Craig, City of Valdez, City of Unalaska, North Slope Borough, City of Cordova, City of Kotzebue, City of Kodiak) • Public schools and educational institutions (if included under procurement guidelines) • Senior centers and public meal programs These entities would need to restructure their procurement practices to comply with the bill's requirements, potentially leading to increased costs and administrative burdens. Current Use and Available Data • There is limited publicly available data on the current percentage of Alaska -grown products in municipal procurement. An assessment of institutional food purchasing trends would be necessary to understand how much this would shift purchasing patterns. • State and municipal food procurement is generally structured around cost efficiency and contract competitiveness. Any shift toward mandated local purchasing should be accompanied by an impact analysis on overall costs and availability. Effect on Agricultural Production There is no clear data indicating that mandating procurement of Alaska -grown food will directly lead to increased agricultural production. • Agricultural expansion depends on factors such as market conditions, infrastructure, labor availability, and climatic constraints. Without investments in agricultural capacity and food distribution infrastructure, this policy alone may not lead to increased local supply. • If demand increases faster than supply, it could drive up food prices, affecting municipal budgets. Fiscal and Economic Considerations • The bill relies on existing funding rather than allocating new resources. This means: Page 84 of 115 AGENDA ITEM #4.a. Institutions would have to redirect existing budgets to comply with new procurement mandates, potentially cutting funds from other programs. If local options are more expensive, municipalities and state -funded entities may see increased costs without additional revenue sources. Without additional state funding, municipalities may face pressure to raise local taxes or reallocate resources from other critical services. • Market Competition & Free Market Considerations The bill could disrupt open market principles by mandating price -setting rather than incentivizing cost reduction or efficiency. Without competitive pricing mechanisms, innovation in local food production may be stifled. Local producers may struggle to scale up efficiently, reducing their ability to compete in a broader market. Unfunded Mandate & Compliance Challenges • This legislation represents an unfunded mandate for municipalities that operate affected facilities. • Compliance costs could include: o Administrative burden of adjusting procurement policies and tracking local purchases. o Potential increased costs if local food is priced higher than current suppliers. o Limited availability of certain products due to Alaska's short growing season and distribution challenges, requiring exemptions or workarounds. Conclusion HB 60 introduces a well-intentioned policy to support Alaska's agricultural sector but does so without a clear funding mechanism, economic impact analysis, or market expansion strategy. The bill: • Imposes new costs on municipalities operating public institutions without additional financial support. • Potentially increases food prices for institutions, reducing funds available for other municipal services. • Creates compliance challenges due to supply chain limitations. • Risks reducing market competitiveness by setting procurement requirements rather than incentivizing affordable local production. To mitigate negative impacts, further study is recommended, including: 1. A fiscal impact assessment on municipalities and affected institutions. 2. An analysis of Alaska's agricultural production capacity to meet new demand. 3. Consideration of financial support mechanisms for affected institutions to absorb potential cost increases. Without these considerations, HB 60 may inadvertently burden local governments while failing to deliver meaningful agricultural expansion. Page 85 of 115 AGENDA ITEM #5.a. FEBRUARY 13, 2025 MISCELLANEOUS ✓ Worked on researching for a code change regarding remote particpation for meetings ✓ A friendly reminder that the APOC Financial Disclosure are due by March 15. It's important to file on time to avoid any penalties for late submissions. RECORDS UPDATE ✓ As of today, we've successfully processed 26 records requests for FY2025. ✓ A records disposal report is tentatively scheduled to be presented to the Assembly in March or April 2025. ✓ Our online code is current, and paper supplements were distributed to those who requested printed copies as of February 7, 2025. ✓ We have distributed the notice of expiring contracts for Calendar Year 2025. LIQUOR LICENSES Pending Liquor License Renewals: 1. Brewery Manufacturer License — Kodiak Island Brewing Company LLC DBA Kodiak Island Brewing Company. Response due on April 8, 2025. 2. Distillery Manufacturer License — Kodiak Island Brewing Company LLC DBA Kodiak Island Still. Response due on April 8, 2025. 3. Package Store License -- Bells Flats Little Store LLC DBA Bells Flats Little Store. Response due on April 12, 2025. Pending Liquor License Transfers: 1. Beverage Dispensary License — Bernie's Bar LLC DBA Bernie's Bar transfer of Controlling Interest. Response due on March 17, 2025. 2. Restaurant or Eating Place — Nuniaq LLC DBA Nuniaq Cafe & Deli transfer of ownership and location. Response due on March 9, 2025. We have been following closely the various activities related to REPL licenses #2611 and 3293. To help you navigate the overlapping and confusing activities, we have put together the infographic documents for you to consider as you form your thoughts and decisions moving forward. BOARDS AND COMMITTEES ✓ The Clerk's Office staff is staffing the Planning and Zoning Commission meetings this month. ✓ Staffing the Kodiak Fisheries Work Group and Borough Lands Committee ✓ Administration of oaths to recently appointed officials ✓ Preparations for the Board of Equalization Appeal process is underway. • BOE meeting is scheduled on Monday, May 5 • Training to the Board of Equalization is tentatively scheduled on April 24. • Board of Equalization filing of appeals to the Clerk's Office will start on February 27 until March 28. ASSEMBLY AGENDA ITEM REQUESTS ✓ See tracking spreadsheet attached. Page 1 of 3 Page 86 of 115 AGENDA ITEM #5.6. FEBRUARY 13, 2025 ELECTIONS April 1 —Absentee by mail request forms will be available. July — Nominating petitions will be made available August 1-15 — Filing period will open August — Deadline for placing ballot propositions and questions before the voters. October 2 — Local Election Seats that are coming up Mayoral Seat Assembly Seats — Jared Griffin and Larry LeDoux School Board Seat — Jim Pryor BUDGETS ✓ Legislative Budget as of January 30 is at 62% ✓ Clerk's Office Budget as of January 30 is at 57% ✓ Met with the Borough manager today to discuss the upcoming FY2026 legislative and clerk budgets ✓ Communicating with Service Area Boards for noticing and advertisements of Service Area Budget Public Hearings TRAVEL AND LEAVE ✓ The Southwest Alaska Municipal Conference will be held in Anchorage in March. ✓ We have made travel arrangements for the Mayor to attend NACO conference, lobbying efforts in DC, and AML legislative conference in Juneau. ✓ Please keep me in the loop if you are planning to take time off so we can predetermine quorum for upcoming meetings. Reporting Absences KI BC 2.25.070 No member of the Assembly may absent himself from any regular or special meetings of the assembly except for good cause. An assembly member who is unable to attend a meeting SHALL ADVISE THE CLERK OR THE MAYOR of the contemplated absence. NOTICE OF VACANCIES ✓ Boards, Committees, and Commissions • Citizens Board of Equalization - 1 Alternate Seat • Kodiak Fisheries Development Association - Borough Appointees - Crab Harvester - 1 Seat (Impending application: Gabriel Prout) • Parks and Recreation Committee - 1 Seat • Solid Waste Advisory Board - 1 Retail Business Representative Seat ✓ Service Area Boards • Bayview Road Service Area Board - 1 Seat Page 2 of 3 Page 87 of 115 AGENDA ITEM #5.a. • Fire Protection Area No. 1 Board - 1 Seat (Impending application: Craig Dagen) • Monashka Bay Road Service Area Board - 3 Seats • Woodland Acres Streetlight Service Area Board - 3 Seats • Womens Bay Service Area Board - 1 Seat UPCOMING MEETINGS ✓ February 13, Work Session ✓ February 20, Regular Meeting ✓ February 27, Work Session ✓ March 5, Regular Meeting ✓ March 12, Joint Work Session with the School Board ✓ March 13, Work Session MISCELLAN OUS EVENTS/CALENDAR Dates Events Location 2025 February 18-20 2025 AML Winter Legislative Conference Juneau February 2025 Federal Lobbying For Assembly Discussion February 21 Coast Guard Appreciation Dinner Golden Anchor February 28 — March 4 2025 NACo Legislative Conference Washington, D.C. March 2025 Southwest Alaska Municipal Conference Anchorage April 2025 AML Spring Conference Anchorage May 1-2 Prince William Sound RCAC Board Meeting Valdez May 21-23 NACo WIR Conference Rapid City, S.D. Jul 11-14 2025 NACo Annual Conference & Exposition Philadelphia, PA September 18-19 AML Summer Board meeting Cordova December 8-12 AML Winter Conference/NEO Training Anchorage Page 3 of 3 Page 88 of 115 AGENDA ITEM #5.a. AGENDA ITEM REQUEST (AIR) FORMS TRACKING LIST e , No. Description Requested Submitt 60-day Completed Comments by ed on deadline on 3 Opening Borough Owned Sharratt 07120123 NA 04111124 ws Will continue to come up Lands To Auction/Lands as a discussion item. Discussion 5 Limiting Airbnb Rentals As Sharratt 08110123 N/A 2129124 ws Discussed on 0212912024 Long -Term Housing 11114124 ws Assembly discussed AD Solutions on 10131124, side discussion was on how they should discuss on how proceed with NA Airbnb's/short term rentals 6 Transfer Stations & Sharratt 2129124 2129124 ws SWAB should look at this. Requirements For Make it current and bring Recycling back recommendation See also AIR #29 7 Land Enhancement To Sharratt 08/17/23 N/A Local Buyers 13 Proposed Code Revisions Sharratt 02101124 N/A 02108124 ws Direction given to defer To KIBC 2.125.030 And this to the ARB/Emailed to KIBC 2.125.040 E&F on 02109124; Follow- Architectural/Engineering up email sent on 10131124 Review Board ws 17 Liquor License Code Arndt 06/25/24 Waived PENDING: Ordinance drafted by Revision Sharratt by Mayor Sometime in Attorney. Held due to the April protests we filed to ABC Board. Wanting to see the whole process. 21 Real And Personal Turner 09/19/24 11108124 10131124 ws Dave Johnson will present Property Code Change, Ames new ideas. Get this KIBC 3.35.030 A.6 scheduled again at another work session. 26 Require all short -term Johnson 12113124 02111125 01109125 ws Also discussed at the rentals operating in the LeDoux 01130125 ws 01109125 ws. Scheduled K/B to register +license 02104125 again for discussion at the with the Borough no later jws 01130 ws. July 1, 2025. No STRs will 02/13/25 ws Additional discussion to be authorized after that occured on 02104 JWS. Schedule for follow-up date until a licensing + discussion on Feb 13. limit is established by resolution. _ 01114124 PENDING Added to Feb 13 INS 27 Advance discussion of Whiteside 03115125 potential draft code Griffin 02113125 changes to create a Sharratt Combined business license program with #26, for Short Term Rentals will be (STRs) in the Kodiak discussed Island Borough. This will on 02113125 NA — requests were submitted before the adoption of new code which established a 60-day deadline Page 89 of 115 Updated: 01/31/25 by nj AGENDA ITEM #5.a. be discussion to inform an ordinance for introduction to be submitted at a future date. 30 Ordinance to allow remote Johnson participation in meetings Sharratt Whiteside 02106125 1 04107125 1 0317 No. Description Requeste Submitte 60 day Completed Comments d by d on deadline on 1 Debate Time Limits Turner 07120123 NA 12121123 Ordinance adopted and 01104124 then vetoed 01118124 by the Mayor 2 KIBC 3.35.030(D) Turner 07120123 Waiver May Only Be Granted ForA Year 4 Change Of Agenda - Turner 08/03/23 NA 12/21/23 Per Mayor- leave format Citizens Comments - as -is In Room/On Phone 8 Hospital Facilities Griffin 08/21/23 NA 2129124 Repair And Renewal 9 Manager's Spending Griffin 08/21/23 NA 01118124 rm Ordinance No. FY2024-13 Authority Adopted Adopted — Amt changed from 25K to 50K 10 Service Area Griffin 08/21/23 NA 11107124 rm Not presenting contract to Maintenance & Snow Assembly. Staff will take a Removal Contracts different direction. 11 Remove Development Smiley 10119123 NA Of C/P From P&Z 12 Discussion Of Sharratt/ 11109123 NA 12/14/23 ws Changing The Whiteside Transient And All - Inclusive Package Accommodations Tax From Five Percent To Twelve Percent 14 Investment Strategy Griffin 06106124 _ Waived 09112124 Finance Director Preferred Meeting 01130125 ws presented on 1130125. Will Date: 09112124 intro ordinance for short term investments. Schedule long term investments in the future. 15 Land Disposal For Whiteside 06111124 08110124 07111124 ws Residential Development 16 2/3 Vote - Ordinance Arndt 05/25/24 08124124 08101124 rm Adopted on 09104124 Amendment Turner 19 LEGAL OPINION Arndt 07129124 NA 08101124 Related to nonprofit Conflict Of Interest Turner I funding NA— requests were submitted before the adoption of new code which established a 60-day deadlinePage 90 of 115 Updated: 01/31/25 by nj AGENDA ITEM #5.a. 20 Letter To AMCO Turner 08115124 10115124 08/29/24 ws Assembly approved a Revoking 09/05/24 rm letter to send to ABC Peking/Sizzler License Board 18 Policy Decisions On Sharratt 07125124 09/23/24 09/26/24 ws Direction was given to The Old Mental Health 10131124 ws proceed with option 1 Buildings 22 Amend Code To Whiteside/ 10115124 12114124 11114124 ws Failed to advance to public Require Sharratt hearing on 11121124 rm. Reconsideration Filers To Provide Reasons At The Time Of Filing 24 Amend 3.30.100 To Sharratt 11/26/24 01125125 01109125 Ryan Sharratt was not Remove "...plus project present during Work contingency equal to Session. This item was ten percent" moved to Jan 9 WS per Mayor and Assembly request. Assembly requested history of KIBC 3.30.100 Discussed having a procurement officer. Suggested creation of a subcommittee to work on rocurement code. 25 Code Change Sharratt 12101124 01130125 01130125 ws Direction given for CDD to Accountability for work on this with the abandoned Vehicles, Borough attorney. KIBC 10.10.010 Ordinance to follow. 28 LEGAL OPINION Griffin 11121124 N/A 11122124 Distributed Legal Opinion Opinion on exparte Sharratt to Mayor and Assembly communication 29 Discuss to consider Whiteside 02107125 04108125 Responded to BO re: feasibility of a solid Sharratt Agenda Item Request #6 waste transfer station Referred to SWAB NA — requests were submitted before the adoption of new code which established a 60-day deadline Page 91 of 115 Updated: 01/31/25 by nj AGENDA ITEM #5.a. IIC7_106y9:We] X6 y:il W_10101 told ?_111010\ViT/114:34:3: 1907Mal : II:1a ASSEMBLY ON FEBRUARY 20, 2025 REPL #3293 Second Floor Restaurant License renewal for years 2024-2025 is currently on hold. • November 21, 2024, the Assembly voiced protest to continued operation of REPL #3293 and directed the Clerk to notify the licensee of their right to defend their license at the next meeting • December 19, 2024, the Assembly provided an opportunity for the licensee to be heard. Assembly voiced protest to the continued operation of this license and requested for the revocation of the license. • December 31, 2024, the Borough received the renewal notice for the Years 2024-2025. This notice from AMCO is a year late. • January 8, 2025, the Borough received the transfer of ownership and location notice from Ms. Yun to Nuniaq Cafe and Deli/116 W. Rezanof to 113 Lower Mill Bay Rd. • January 16, 2025, the Borough Assembly voiced objection to the renewal for the years 2024-2025. • February 4, 2025, the ABC Board postponed the protest to the continued operatio. and the renewal to a meeting no earlier than March 1. They also postponed the transfer of ownership and location because of the impending protest of the City of Kodiak to the untimely renewal of this license (see letter attached). • February 20, 2025, the assembly will review the transfer of ownership and location from Ms. Yun to Nuniaq Cafe and Deli/116 W. Rezanof to 113 Lower Mill Bay Rd. The Borough needs to respond to the ABC Board Notice by March 9, 2025. If the ABC board overrules the Borough's protests (any of the previous Assembly actions above including a possible protest of the transfer of ownership), the Kodiak Island Borough Assembly may exercise its appeal rights. By taking another action, the Assembly may give direction to request a hearing on the ABC Board's decisions. Page 1 of 3 Page 92 of 115 AGENDA ITEM #5.a. REPL #3293 Second Floor Restaurant Date Timeline Borough Actions/City of Kodiak Actions February 17, AMCO Notice of renewal received for year 2020-2021 2020 March 15, AMCO only sent the renewal notice to the City of Kodiak. The Borough wasn't 2022 included in the email, even though the cover letter mentions that both the Borough and the City should have received it. Due to the lack of notice, the KIB missed the opportunity to investigate REPL 3293 for the license period 2022-2023. November 21, Assembly voiced protest to continued operation of REPL #3293 and directed the 2024 Clerk to notify the licensee of their right to defend their license at the next meeting November 22, KIB Clerk contact licensee by phone, email, and postal mail for opportunity to 2024 defend license December 4, Ms. Yun and daughter Stephani discussed process with Clerk in person 2024 December 15, Deputy Clerk spoke with licensee about participating during 12/17 ws and 12/19 rm 2024 December 19, Assembly voiced protest to the continued operation of this license and directed the 2024 Borough Clerk to advise ABC Board of this objection and requested for the revocation of the license December 31, The Borough received the renewal notice for the Years 2024-2025. This notice from 2024 AMCO is a year late. The renewal notice included waivers of operation notices for Years 2022 and 2023. The licensee is late for filing a waiver for the year 2024. The waiver was due on November 1, 2024, that waiver needs to go to the ABC Board for consideration. January 6, Sent a letter to licensee regarding her right to defend the renewal application before 2025 the Assembly. January 8, The Borough received the transfer of ownership and location notice from Ms. Yun to 2024 Nuniaq Cafe and Deli/116 W. Rezanof to 113 Lower Mill Bay Rd. January 16, The Assembly voiced objection to the renewal. 2025 January 17, The Clerk's Office notified AMCO of the Assembly's objection to the renewal. 2025 January 23, The City of Kodiak considered the renewal of this license during their regular 2025 meeting of January 23, 2025, and postponed action to a January 30, 2025, special meeting. January 30, The City held a special meeting and voiced a protest to license #3293. They 2025 authorized a letter written by the City attorney (see attached). February 4, The ABC Board scheduled the following on their agenda: 2025 Protest of continued operations • Protest of renewal • Transfer of ownership and location All of these items were postponed to a meeting no earlier than March 1, 2025. February 13, The City of Kodiak will hold a public hearing on the transfer of this license. 2025 Page 2 of 3 Page 93 of 115 AGENDA ITEM #5.a. Additional Information on REPL #3293 Alaska Business License AS 43.70.020(a) a business license is required for the privilege of engaging in a business in the State of Alaska. • November 19, 2016, to December 31, 2020, Licensed • January 21, 2021, to September 16, 2021, Gap, None Issued • September 17, 2021, to December 31, 2022, Licensed • January 1, 2022, to present, None issued License# Business Name Q1397791 SECOND FLOOR RESTAURANT ........................... 1045076 SECOND FLOOR RESTAURANT 1023833 SECOND FLOOR RESTAURANT Waiver of Operation Application AS O4.11.330 (a3) Owner Name city SUNG WON KIM KODIAK SOOK C YUN KODIAK SOOK C YUN KODIAK Status Expired Expired Expired The applicant has not operated the licensed premises for at least 240 hours during each of the two preceding calendar years, unless the board determines that the licenses premises are under construction or cannot be operated through no fault of the applicant. 3 AAC 304.170 (a) Except as provided in this section, the board will deny an application for renewal of a license if the licensed premises were not operated for the time required by AS O4.11.330(a)(3) or (d). (e) The board will, in its discretion, deny a third or subsequent consecutive application for waiver unless the licensee clearly shows that the licensed premises were not operated because the premises were condemned or substantially destroyed by any cause. If the premises identified on an applicant's license are not leased or owned by the licensee, the third or subsequent application will, in the board's discretion, be denied. Additionally, a third or subsequent consecutive application for waiver that does not identify a licensed premises location will, in the board's discretion, be denied. Waivers of Operation 2015 Licensed renewed in 2016 under ABC consent agenda, unable to determine if waiver was filed 2016 & Licensed renewed on April 3, 2018, under ABC consent agenda, no records 2017 indicate that waivers were filed 2018 & License was renewed March 31, 2020, under ABC consent agenda, no 2019 records indicate waivers were filed. 2020 & Wavier granted as a result of the pandemic 2021 2022 Waiver #1, submitted late to AMCO on December 29, 2024 2023 Waiver #2, submitted late to AMCO on December 29, 2024 2024 Waiver #3, None submitted as of February 12, 2025. The date to submit a waiver application to avoid a late fee for 2024 was on November 1, 2024. *All third or subsequent waiver applications must go before the ABC Board for consideration. Page 3 of 3 Page 94 of 115 AQENDA JTEM #5. a. D Office of the Mayor and City ounc 710 Mill Bay Road, Room 111, Kodiak, Alaska 99615 January 30, 2025 Hon. Dana Walukiewicz Alcoholic Beverage Control Board 550 West 7th Avenue, Suite 1600 Anchorage, Alaska 99501 Re: REPL # 3293 Renewal Protest Dear Board Chair Walukiewicz: The City Council of the City of Kodiak protests the untimely renewal of REPL # 3293. This protest is submitted pursuant to 3 AAC 305.085 and KCC 5.12.030. A draft of this letter was sent to the applicant on January 24, 2025 with notice that the council would hear the matter at its January 30, 2025 meeting and that the applicant would be heard as to the matter. REPL # 3293 BACKGROUND Second Floor Restaurant's sales tax reports show that License No. 3293 has not been in consistent, active use for over ten years.' State of Alaska Business License # 1045076 for Second Floor Restaurant was issued on 11/19/2016 and expired on 12/31/2020. State of Alaska Business License # 2139779 for Second Floor Restaurant was issued on 9/17/2021 and expired on 12/31/2022. No subsequent business license has been issued for Second Floor Restaurant. The application for renewal of REPL # 3293 for 2022 & 2023 was on the board's agenda for its April 12, 2022 meeting and was apparently approved as part of the delegated consent agenda. However, City records indicate that the license was not actively exercised for at least 240 hours during each of the two calendar years preceding that renewal application. Moreover, operation of the Second Floor Restaurant between January 1, 2021 and September 16, 2021 would have been unlawfu1.2 The City is unable to determine whether the applicant disclosed the lack of active use of REPL # 3293 when applying for renewal for 2022 & 2023. As the matter of the renewal was resolved by the board's delegated consent agenda, the City is unable to determine if the board found that failure to actively exercise REPL # 3293 in 2020 and 2021 was excused on the basis that the licensed premises were under construction or could not be operated through no fault of the applicant.' The 1 Kodiak City Code 3.08.220 limits the City's ability to disclose sales tax information. While disclosure is likely authorized on the basis that this protest is a proceeding of the city involving taxes due under the sales tax chapter, the City, out of caution, is presently withholding disclosure of Second Floor Restaurant's sales tax returns. The City will promptly provide copies to the board if the business owner consents. The City notes that the board could require the applicant to provide the board with copies of its City of Kodiak sales tax returns pursuant to 3 AAC 305.120. 2 See AS 42.70.020. 3 See AS O4.11.330(a)(3). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 95 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 2 of 14 City can only assume that operation waivers for 2020 and 2021 were granted as a result of the pandemic. However, available information indicates that REPL # 3293 could not have been actively exercised for 240 hours in the preceding years required for the license to have been renewed in 2016, 2018, and 2020. The 2020 renewal of REPL # 3293 was on the delegated consent agenda at the board's March 31, 2020 meeting. The meeting records do not indicate that the applicant sought operational waivers for 2018 or 2019, whereas the board's agenda shows that it considered waivers of minimum operating requirements for other applicants. The 2018 renewal of REPL # 3293 was on the delegated consent agenda at the board's April 3, 2018 meeting. The meeting records do not indicate that the applicant sought operational waivers for 2016 or 2017, whereas the board's agenda shows that it considered waivers of minimum operating requirements for other applicants. Finally, the City was unable to determine if the applicant sought waivers of minimum operating requirements for 2015 when it presumably applied for renewal of REPL # 3293 in 2016. Assuming the information available to the City regarding active exercise of REPL # 3293 is more or less accurate, the board would have had to have found that failure to actively exercise the license for each of the years preceding the 2016, 2018, and 2022 renewals was for reasons beyond the applicant's control. Based on review of the board's meeting documents, it is doubtful that the board made such findings. Moreover, it is doubtful that the board could have made such findings because the board would have to have found that factors beyond the applicant's control excused more than seven years of failing to actively exercise the license. What circumstances beyond a licensee's control that would prevent active exercise of a license for most of a decade? A licensee has the burden of proving that the license was actively exercised.' Information available to the City indicates that REPL # 3293 has not been actively exercised as required by AS 04.11.330(a)(3) for over a decade. If the applicant represented that the license had been actively exercised as required by AS O4.11.330(a)(3) when seeking renewal in 2016, 2018, 2020, and 2022, those representations are at odds with representations the applicant made to the City. The applicant admits that the license was not exercised in 2022 and 2023. It is clear that it was not exercised in 2024, prior to or following the license's expiration on February 28, 2024. And it is also clear that the applicant would not actively exercise the license for most, if any, of 2025 were REPL # 3293 reissued and renewed. LEGAL PRINCIPLES Kodiak City Code 5.12.030. License Application Review. ' 3 AAC 305.120(I). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 96 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 3 of 14 (c) After receiving the administration report and public comment, the council, by motion, may take one of the following actions on the matter of the application: (3) Protest. Upon determining the existence of one or more of the grounds contained in subsection (d) of this section, the council may direct the clerk to cause a protest to be filed with the Alcohol Beverage Control Board. (d) Any application for an alcoholic beverage license may be protested for one or more of the following reasons: (8) Any factor identified by state statute or regulation as an appropriate grounds for protest; (9) Any other factor the council determines is generally relevant or is relevant to the particular application. 3 AAC 305.085. Local governing body protest. (a) A local governing body may protest an application filed under this chapter. The protest must be in writing, filed with the board, and copied to the applicant, and must include the governing body's reason for the protest. The reasons stated by a local governing body must be logical grounds for opposing the application or continued operation of the license and have a reasonable basis in fact. (e) A local governing body protest may be based upon facts that render the particular application objectionable to the local body or may be based upon a general public policy. If based on a general public policy, the policy must have a reasonable basis in fact, may not be contrary to law, and may not be patently inapplicable to the particular application being protested. The board will not substitute the board's judgment for that of the local governing body on a matter of public policy that has reasonable factual support. "The board will deny an application if ... if the board concludes a protest of a local governing body is not arbitrary, capricious, or unreasonable."' GROUNDS FOR PROTEST The city council protests the application for renewal of REPL # 3293 pursuant to 5.12.030(d)(8) and (9) as explained in more detail below. In summary, renewing this expired license is not in the best interest of the public owing to the former license holder's persistent failure to 5 3 AAC 305.110(f). Telephone (907) 486-86361 Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 97 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 4 of 14 operate the license in accordance with applicable statutes and regulations and general failure to meaningfully operate under REPL # 3293 for many years. Under Alaska Statute 04.11.540, REPL # 3293 expired on February 28, 2024. On or about March 16, 2024, one of the four REPLs authorized for issuance for a premises within the City of Kodiak became available to all interested applicants. The board's regulations do not require repeated renewal, much less reissuance, of unused licenses. Nor do the regulations allow a former license holder to squat on an unused, expired license in lieu of making the limited number of REPL licenses freely and fairly available to any qualified applicant. The City of Kodiak has previously requested that the board authorized additional REPLs for the City of Kodiak. As long as City of Kodiak REPLs are limited to four, the board should not grant the holders of expired licenses a property right in obtaining a license that is not required by the laws that govern such licenses. The City of Kodiak supports making the fourth REPL publicly available to all qualified applicants in accordance with 3 AAC 305.040. A. Untimely renewal of REPL # 3293 is not in the public interest. Second Floor Restaurant did not exercise REPL # 3293 at all in the preceding three years and has not actively exercised the license in a decade. Renewing a license that has not been actively exercised in years and that lacks premises from which to operate the license if renewal is not in the public interest. 1. Renewing a license that does not meaningfully contribute to the City's tax base is bad public policy. Active exercise of REPLs within the City of Kodiak contributes significantly sales tax revenue to the City and is an important part of Kodiak's tourism and hospitality industry. Each year, sales taxes account for 55-70% of the City's general fund revenue. Of the four REPLs authorized for the City of Kodiak, two were held by the instant applicant and have not been actively exercised in the past several years. Based on the preceding two years, an actively exercised REPL within the City results in an average of $85,791.52 in sales tax revenue per license, per year. As the renewal application indicates, REPL # 3293 was not exercised in 2022, 2023, or 2024. Based on the applicant's admitted non-use of the REPL # 3293 in 2022 and 2023 and the business's lack of a mandatory State of Alaska business license since January 1, 2023, the board should reasonably infer that Second Floor Restaurant's sales tax remittances during for 2022, 2023, and 2024 are essentially consistent with the evidence indicating that the business has not actively operated for the past three years. If REPL # 3293 had been actively exercised in 2022, 2023, and 2024 with sales equal to the average Kodiak REPL that is actively exercised, the City would have collected $257,374.56 in sales tax revenue from the licensee during this period. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 98 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 5 of 14 The application and accompanying waivers show that the applicant lacks the capacity, and seemingly the intent, to operate REPL # 3293 in the foreseeable future. The City of Kodiak has lost significant sale tax revenue as a result of the applicant's persistent failure to actively exercise # 3293. Enough is enough. Reissuing and renewing the expired REPL # 3293 so that the applicant can continue to not operate the Second Floor Restaurant (which lacks premises to license) and continue to not contribute to the City's tax base defeats sound public policy. 2. Kodiak deserves an active and bustling hospitality industry. Tourism is a significant component of the local economy and culture. Visitors and residents alike enjoy dining out in Kodiak. The City need not explain to the board the role that beer and wine plays in the restaurant industry. At present, one-half of the REPLs authorized for the City of Kodiak are not actively exercised. REPL # 3293 has been substantially unused for a decade, denying Kodiak's residents and visitors enjoyment of 25% of the REPLs that may be issued within the City. Numerous Kodiak entrepreneurs desire to actively operate a REPL business within the City. The applicant has not used the license for this intended purpose and is not poised to do so. The four REPLs that may be issued for premises within the City of Kodiak need to be used for their intended purpose. That purpose is active use that enables an active, regulated hospitality industry. The purpose of licenses issued pursuant to Alaska Statute Title 4 is expressly not to establish a property interest in the license that can be held without use until the holder finds a suitable buyer to cash out the property interest.' Rather, a license is privilege that can be maintained so long as the licensee exercises the privilege in accordance with the title and applicable regulations. Neither the residents and visitors to the City of Kodiak nor its eager entrepreneurs benefit from one-half of the allowable REPLs going unused. The city council has determined that the public interest and public policy are furthered by an active, lively hospitality industry, which is being stymied by unsatisfied demand for restaurants that serve beer and wine. Reinstating and renewing a license that will continue to be unused by the applicant defeats the public interest. Local entrepreneurs must be given a fair opportunity to maximize the use of the limited number of REPLs. B. An REPL may not be reissued or renewed without a code compliant licensed premises. For City of Kodiak water and sewer utilities, vacant properties pay one half the rate that is applicable if the property is occupied.' Service to 116 E. Rezanof Drive has been charged at the lower vacant rate. The owner of that real property confirmed that Second Floor Restaurant has not 6 AS O4.11.660; see also AS O4.11.690(a). ' See City of Kodiak, Schedule of Fees, Charges and Tariffs, (July 1, 2024), at 14.4.1.26 and 14.5.3.25. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 99 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 6 of 14 held a lease for any portion of it for several years. It is the City's understanding that applicant does not dispute that she does not use, control, or operate premises at 116 E. Rezanof.8 According to statute, "'licensed premises' means any or all designated portions of a building or structure, rooms or enclosures in the building or structure, or real estate leased, used, controlled, or operated by a licensee in the conduct of business for which the licensee is licensed by the board at the specific address for which the license or an endorsement to the license is issued[.]"' For a new license, the applicant must provide "documentation that shows the applicant's right or title to, or interest in, the land and buildings at the location of the business to be licensed[.]"10 A renewal application must identify "any change to proof of possession in the preceding two calendar years"11 and contain "an annotated illustration of the premises designating the areas for storage, service, and consumption of alcoholic beverages.12 It appears that the renewal application fails to satisfy these requirements for a renewal application. 1. The board cannot grant the application because there is no licensed premises that is a bona fide restaurant. Alaska Statute 04.09.120(c) provides that the "board may issue or renew a license under this section only if the (1) board determines that (A) the licensed premises is a bona fide restaurant as defined in AS O4.21.080(b)[.]"13 Because a determination that the licensed premises is a bona fide restaurant necessarily requires a licensed premises, the board cannot issue or renew an REPL without a licensed premises. To renew R/E No. 3293, the board would be required to determine that the licensed premises is a bona fide restaurant. Such a determination is not possible. Thus, the application must be denied. 2. The board should not issue a license absent a code -compliant premises. KCC 5.12.030 authorizes the council to protest when the business operated under the license is in violation of any fire, health, or safety code.14 When adopting this ordinance, the council assumed the board would not issue or renew an REPL when the applicant has no premises from which to operate the license. The assumption was reasonable because the regulations prohibit the board from doing so. 8 See also 3 AAC 305.050(c)(5) (requiring that a renewal application contain "any change to proof of possession in the preceding two calendar years"). 9 AS O4.21.080(b)(22). 10 3 AAC 305.045(c)(5). 113 AAC 305.050(c)(5). 12 AS O4.11.270(a)(1); AS 11.260(a)(3). 13 AS O4.09.120(c) (emphasis added). 14 KCC 5.12.020(d)6). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 100 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 7 of 14 A "license is issued for a specific place which is the licensed premises, and which must be clearly designated in a line drawing accompanying an application.1115 Statute requires that the "licensee shall surrender a current license to the board not later than 10 days after the loss or vacation of the licensed premises.1116 The City is unaware of any statute or regulation that authorizes the board to issue a REPL without a specific place which is the licensed premises. Even if the board could issue or renew an REPL without licensed premises, it would be unreasonable to do so. Fire, building, and other life safety inspections are important components of government regulation. The City of Kodiak cannot inspect non-existent premises to ensure that they are reasonably free from hazards. The City acknowledges that the public cannot be harmed by non- existent premises, but granting a license, which requires local regulations in terms of health, public safety, and taxation, but which is based on a non-existent physical location is not in the public interest. The City of Kodiak objects to the board issuing any license that requires physical premises for the license's operation when the applicant has not shown that the license will be operated from code -compliant premises. C. REPL # 3293 expired without a timely renewal application. An application to renew REPL # 3293 for 2024 and 2025 is presently before the board, several months into 2025. As explained below, this license expired on February 28, 2024.11 It cannot be renewed. Only a new license may be issued to the applicant for 116 Rezanof Drive premises,18 and all qualified persons are equally entitled to apply for any new REPL.19 1. A timely renewal application was not submitted, REPL # 3293 has expired. Applicable statute and regulations are unambiguous that a complete renewal application must be submitted by the deadline.20 Assuming the present application for renewal of REPL # 3293 15 3 AAC 305.630(a). 16 AS O4.11.580(b) (emphasis added). 17 AS O4.11.540 ("If a complete application for renewal has not been filed by February 28 or the required fees and the penalty fees have not been paid by that date, the license, endorsement, or conditional contractor's permit expires at 12:00 midnight February 28..' 18 See AS O4.11.540 ("A new license may not be issued to the holder of an expired license for the same premises except on proof satisfactory to the board of good cause for the failure to file and pay."). 19 See 3 AAC 305.040; see also Alaska Const. Art. I. § 1 ("all persons are equal and entitled to equal rights, opportunities, and protection under the law"). 20 AS O4.11.540 ("If a complete application for renewal has not been filed by February 28 or the required fees and the penalty fees have not been paid by that date, the license, endorsement, or conditional contractor's permit expires at 12:00 midnight February 28."); 3 AAC 305.050 (a) ("an applicant for renewal of an alcoholic beverage license ... must file a completed application ... A complete application must be on a form prescribed by the board and include the information and documentation set out in this section, the application fee, and fees for renewal of licenses and endorsements as set out under 3 AAC 305.145."). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 101 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 8 of 14 is a complete application, it was submitted no earlier than December 29, 2024. The notice given pursuant to AS O4.11.520 confirms that the renewal application was deemed complete on or about December 30, 2024. This is nearly a year after the deadline for submission of a completed renewal application. Because a complete renewal application was not submitted, and the required fees and penalty fees were not paid, by February 28, 2024, the license expired at 12:00 midnight February 28, 2024.21 2. The applicant may not be issued a new license and REPL # 3293 cannot be reinstated. a. The applicant cannot be issued a new license. Alaska Statute 04.11.540 states: "A new license may not be issued to the holder of an expired license for the same premises except on proof satisfactory to the board of good cause for the failure to file and pay." First, the City of Kodiak has not been given notice of an application for a new REPL in Kodiak,22 and it is unaware of any publishing of the notice that would be required for a new license.23 Until a complete application for anew license has been submitted, and the City (and Kodiak Island Borough) are given notice of the application and an opportunity to protest, no new license may issue. Second, if an application for a new REPL had been submitted for 116 Rezanof Drive premises, the applicant would need to demonstrate good cause for failure to file a timely renewal application.24 The City is unaware of good cause that would excuse the applicant's failure to file a timely file a complete renewal application. b. License No. 3293 cannot be reinstated. The board's regulations allow it to consider "a written request to reinstate the license" that expired because the applicant failed to submit a complete renewal application by February 28 of the applicable year."25 Even if the holder of the expired license satisfies the mandatory requirements for reinstatement, reinstatement, when otherwise allowed, is discretionary, not mandatory. However, the "board will deny a request for reinstatement of a license submitted under (a) of [3 AAC 305.055] if:" 21 AS O4.11.540. 22 See AS O4.11.520. 23 See 3 AAC 305.075(a)(2). 24 AS O4.11.540 ("A new license may not be issued to the holder of an expired license for the same premises except on proof satisfactory to the board of good cause for the failure to file and pay."). 2s 3 AAC 305.055. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 102 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 9 of 14 (1) the license became available in accordance with 3 AAC 305.040 and the license was issued to a different applicant, unless the limit of licenses under AS O4.11.400 has not been reached; or (2) the board finds that the applicant's failure to timely file or pay was caused by (D) any other action of the applicant, whether active or tacit, that the board finds constitutes a failure to lawfully operate the business for which the license was issued.z6 If a written request to reinstate REPL No. 3293 has been given to the board, the City is unaware of it. And if such request has been made, the board appears to be prohibited from granting the request. First, and explained in more detail below, the City submits that Alaska's constitution, Title 4, and the administrative regulations require that all persons be given a fair opportunity to apply for the license under the present circumstances, which has not occurred. Second, 3 AAC 305.055(b)(2)(D) precludes discretionary renewal when the applicant's failure to timely renew the license results from the applicant's failure to lawfully operate the business for which the license was issued. That certainly seems to be what has occurred here. The Second Floor Restaurant was not lawfully operated between January 1, 2023 and the present date.27 No other finding is possible.28 The applicant's waiver requests demonstrate that the license was not lawfully exercised in 2022 and 2023. In addition, available information shows that the business lacks premises from which the license could be lawfully operated. If the applicant failed to surrender REPL # 3293 as required by AS O4.11.580(b), it is further evidence that the applicant has failed to lawfully operate the business. Taken as a whole, the record creates a strong inference that the applicant failed to timely file a complete renewal application because the applicant had failed to lawfully operate the business for many years. Simply put, the applicant abandoned lawful operation of the business and for the same reason failed to timely submit a complete renewal application. It appears that the applicant completed the renewal application nearly a year after the deadline for the sole purpose of selling the license.29 26 3 AAC 305.055. 27 See AS 42.70.020. 28 See State of Alaska Business License # 2139779. 29 On January 8, 2025, the City receive notice of an application to transfer REPL #3293 to Nuniaq, LLC. Nuniaq Cafe & Deli opened relatively recently and has been an excellent addition to the dining options in downtown Kodiak. The business has sales tax delinquencies, but it has been working with the city to cure those and would likely be a good candidate for an REPL when those issues are resolved. While the City will ultimately be please to see more of the issued but unused Kodiak REPLs put into active use by restaurants such as Nuniaq Cafe & Deli, it would be improper for the board to issue a Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 103 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 10 of 14 3. All interested persons should be given fair opportunity to apply for the available REPL. As the board is aware, demand for restaurant and eating place licenses for Kodiak significantly exceeds the four licenses authorized. With limited exception, the board must deny application when there are not licenses available.ao A license becomes available "30 days after a notice of expiration has been sent to a licensee due to non -renewal of the license and not later than April 15 where the license becomes available based upon the count of the relevant population[.]" Alaska Statute 04.11.550 states: On or before February 15, the director shall mail a notice of expiration to each licensee who has not either (1) filed an application to renew a license, along with any applicable affidavits and all fees due, or (2) notified the director of an intent not to do so. Failure of the director to mail this notice of expiration does not waive the requirement that the application for renewal be filed by February 28. It would be inequitable to deny interested persons a reasonably opportunity to apply for the Kodiak REPL that became available by March 16, 2024.11 license for Second Floor Restaurant solely so that its owner can sell the license. Notably, the transfer application would also relocate the premises. This is not the acquisition of a restaurant that holds a license, but the purchase of an REPL license. Second Floor Restaurant has not actively exercised REPL #3293 in years and has no premises from which to exercise it. Waiving years of failure to actively exercise its license and issuing a license to Second Floor Restaurant solely so that Second Floor can sell that license would blatantly defeat the statutory directive that a license issued under Title 4 "is a personal privilege, not a property interest." The holder of expired REPL #3293 did not exercise the privilege granted and does not intend to. The present application has been made so that a license may be sold. The sole reason to issue Second Floor Restaurant an REPL (and the only plausible argument that it will return to active use) is so that REPL may sell the license. This would purely be a property interest as the applicant does not intent to enjoy the "personal privilege" granted by the license, but to sell the license to another. Granting this application would be granting Second Floor Restaurant a property interest, no more, no less. Aside from turning a personal privilege into a marketable property interest in contravention of AS 04.11.660, issuing Second Floor Restaurant an REPL so that it can convey the license to Nuniaq, LLC unfairly denies other local entrepreneurs an opportunity to apply for the available REPL license. Assuming Nuniaq, LLC resolves its sales tax delinquencies, as it likely will, it would be a good candidate to apply for a new REPL. Nuniaq, LLC and other local restaurateurs should be given equal opportunity to apply for that license. 30 3 AAC 305.040. 313 AAC 305.040(2). The City assumes that the AMCO director sent the expiration notice on or before February 15, 2024 as required by AS O4.11.550. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 104 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 11 of 14 AMCO publishes a list that identifies the number of allowed license types for each community as well as the number of licenses issued.32 It identifies that four REPLs are authorized for Kodiak and that four were issued. This information was accurate as of January 16, 2024. However, an REPL was available in Kodiak no later than March 16, 2024.33 Insofar as the City has been able to determine, no public notice of the availability of an REPL was given. "A license issued under [AS Title 4] is a personal privilege, not a property right.1134 In accord with constitutional mandates of equal protection and equal opportunities,35 the regulatory regime manifests an intent that this privilege is equally available to all qualified persons,36 and to avoid monopolies.37 However, it appears that the current applicant is the only person who had notice that an REPL was available. All other interested persons would reasonably rely upon the license availability list published by AMCO and would have no reason to believe that a license had become available subsequent to publication of the list. As far as the City can determine, the only mechanism by which an interested party other than the holder of the expired license could have learned that REPL # 329 had expired, and therefore a license was available, is by periodically inquiring with AMCO. Yet the holder of the expired license is given written notice that the license has expired and is therefore on notice that a license is available.38 There is no sound reason why the holder of an expired license, who by definition failed to act to retain the privilege granted by the license, should have an advantage over all other persons by receiving notice that a license is available when no other interested parties are given such notice. This is particularly inequitable where published records suggest that no REPL for Kodiak is available. D. Waiver of operation applications for 2022, 2023, and 2024 should be denied. On December 29, 2024, the applicant filed requests for waiver of the requirement that the license be exercised for at least 240 hours for 2022 and for 2023. In summary, the applicant argues that the license could not be actively exercised during these years because the building in which the licensed premises were located changed ownership and the applicant had difficulties with the new landlord. 32https://www.commerce.alaska.gov/web/Portals/9/pub/ABC/otherAlcoholResources/PopLicCountC hart1.16.24.pdf 33 See 3 AAC 305.040(2). The City presumes that the AMCO director mailed the notice required by AS 04.11.540. 34 AS O4.11.660(a). 31 Alaska Const. Art. I. § 1 ("all persons are equal and entitled to equal rights, opportunities, and protection under the law"). 36 See 3 AAC 305.100-.105. 37 AS O4.11.690. 38 AS O4.11.540. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 105 of 115 AGENDA ITEM #&a. Hon. Dana Walukiewicz January 30, 2025 Page 12 of 14 "Under AS O4.11.330(a)(3), the board will determine whether, through no fault of the licensee or because the premises are under construction, the licensed premises could not be operated for the required time during the preceding calendar year"31 The board cannot reasonably find that the expired license was not actively exercised for reasons beyond the applicant's control. First, failure to actively exercise REPL # 3293 for the past decade cannot be explained by transfer of the real property in the summer of 2021.40 The applicant's difficulties with her former landlord in 2022 and 2023 cannot reasonably be said to be the reason the license was not actively exercised when failure to actively exercise the license in 2022 and was the continuation of a failure to actively exercise the license since 2014. Second, the applicant has not shown why the difficulties with the former landlord prevented active exercise of the license for over two years. The applicant has not shown that she used reasonable diligence to actively exercise the license despite the difficulties with the landlord. "A breach of the covenant of quiet enjoyment 'whether the covenant is expressed or implied, occurs if the lessee's enjoyment of the leased land is disturbed in a substantial manner either by the lessor or by the owner of a title paramount.'"41 The conduct alleged of the landlord would violate such covenant and, based on the facts presented by the applicant, appears to be tortious. The applicant fails to identify what efforts she made to remedy the complained of conduct and it appears that judicial redress was not sought.42 Nor has the applicant shown that she made diligent efforts to obtain alternative premises from which to operate the license. Failure to actively exercise the license for some period of time as a result of the landlord's alleged interference is reasonable and beyond the applicant's control. Assuming that the landlord's interference initially prevented active exercise of REPL # 3293 and assuming that it would have been exercised but for this interference (an assumption belied by the record), the applicant could have and should have sought to remedy that interference. The applicant has not shown what, if any, efforts were made to ensure that the license was actively exercised despite the complained of interference. E. The board cannot grant a third, much less a tenth, waiver. The applicant submitted waiver requests for not operating the license for the time required under AS O4.11.330(a)(3) or (d) in 2022 and 2023. But as shown above, the license was not operated for the time required under AS O4.11.330(a)(3) for several of the preceding calendar years, likely 39 3 AAC 305.120(b). 40 See Statutory Warranty Deed, recorded as Document No. 2021-001557-0, Records of the Kodiak Recording District, Third Judicial District, State of Alaska. 41 Berrey v. Jeffcoat, 785 P. 2d 20. 23 (Alaska 1990). 42 CourtView does not show any suit involving the property owner, Second Floor Restaurant, or Sook Yun, nor any case involving Sung W. Kim in the past decade. Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 106 of 115 AGENDA ITEM #5.a. Hon. Dana Walukiewicz January 30, 2025 Page 13 of 14 eight. Additionally, were the expired license reinstated, the applicant would need to request a waiver for 2024 as the license was not actively exercised in 2024. (e) The board may deny a third or subsequent, consecutive application for waiver (1) unless the licensee clearly shows that the licensed premises were not operated, because the premises were condemned or substantially destroyed by any cause; (f) Absent circumstances to the contrary, the board will deny a third or subsequent, consecutive application for waiver in the event of condemnation or destruction of the premises if the premises identified on an applicant's license are not leased or owned by the licensee. Additionally, a third or subsequent consecutive application for waiver that does not identify a licensed premises location will be denied.a3 Whether or not the applicant sought and the board approved applications for waiver for any of 2014, 2015, 2016, 2017, 2018, 2019, 2020, or 2021, the record shows that the applicant had not satisfied AS O4.11.330(a)(3) prior to seeking earlier renewals of REPL # 3293. The applicant should not now benefit from earlier failures to comply with the licensing requirements. Unless the applicant satisfied the burden of showing that REPL # 3293 was actively exercised in 2014, 2015, 2016, 2017, 2018, 2019, 2020, and 2021, the board should treat the requests for waiver for 2022 and 2023 as the ninth and tenth requests for waiver respectively.44 Even if the board disregards the lengthy history of failure to actively exercise the license as required by Alaska statute, it cannot disregard that the license was not actively exercised in 2024 based on the fact that the applicant did not submit a timely renewal application. The applicant, at a minimum, must demonstrate that she satisfies the requirements for a third consecutive waiver — waiver of the failure to actively exercise the license in 2024. The applicant cannot demonstrate that she satisfies the requirements for a third waiver. First, the applicant cannot show that the premises were condemned or substantially destroyed. Even if it were otherwise, the board would be required to deny a third waiver based on condemnation or destruction because the premises identified on an applicant's license are not leased or owned by the licensee.as Finally, "a third or subsequent consecutive application for waiver that does not identify a licensed premises location will be denied."41 The waiver applications dated December 29, 2024 43 3 AAC 305.120. 44 Even if waivers for 2020 and 2021 are not "counted" toward the total as a result of the pandemic, the present waiver requests would need to be the seventh and eighth requests. 45 See 3 AAC 305.120(f). 46 3 AAC 305.120(f) (emphasis added). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 107 of 115 AGENDA ITEM #&a. Hon. Dana Walukiewicz January 30, 2025 Page 14 of 14 nominally identify the premises address as 116 Rezanof Drive. However, 3 AAC 305.120(f) must be interpreted to mean that that the application identifies (i) actual existing premises that (ii) are under the control of the applicant. In addition to other provisions,47 the statutory definition of "licensed premises" demands as much.48 If an applicant could satisfy 3 AAC 305.120(f) by simply identifying any premises, the requirement that the applicant identify a licensed premises location would serve no purpose. The owner of the 116 Rezanof Drive property has informed the City that the applicant does not have a lease to premises at that property. The applicant's waiver applications tend to confirm as much. As the applicant's right to possess the identified premises is doubtful, the applicant should be made to produce evidence showing that the applicant has the right to possess the premises. Absent reasonable proof of the right to possess as 116 Rezanof Drive, the waiver applications should be denied because they do not identify a premises that the applicant has the right to possess. And if the Board were to reissue REPL # 3293, the applicant would necessarily need to immediately request waiver for 2024, which would indisputably be at least the third consecutive waiver, and 305.120(f) mandates that it "will be denied." CONCLUSION The holder of expired REPL #3293 failed to timely submit a complete renewal application, and for good reason: The license has not been actively exercised in many years. Putting aside the many technical defects that preclude the board from reissuing REPL #3293, the spirit of the laws and public policy also militate against reissuing the license. A license issued under Title 4 is not a property interest. It is a privilege that must be actively exercised for the benefit of the public. This has not been true of REPL #3293 for many years and the applicant fails to show that the license would be so exercised were it reissued. REPL #3293 expired. AMCO should give public notice that an REPL for a location in the City of Kodiak is available, providing all local entrepreneurs equal opportunity to obtain the privilege of operating the license. The board can then, in accordance with 3 AAC 305.105, select among the mutually exclusive and competing applications. Sincerely, CITY OF KODIAK 47 E.g., AS O4.11.580; AAC 305.045(c)(5); 3 AAC 305.050(c)(5). 48 AS O4.21.080(b)(22). Telephone (907) 486-8636 / Fax (907) 486-8633 mayor@city.kodiak.ak.us Page 108 of 115 2/13/25, 6:15 PM Text - H.R.7797 - 118th Congress 2023-2024 : Ocean Restoration Research and Development Act CONGR--FSS*GOV Provided by: Rob Lindsey on 02.13.2025 WS H.R.7797 - Ocean Restoration Research and Development Act 118th Congress (2023-2024) Sponsor: Rep. Carter, Earl L. "Buddy" [R-GA-11 (Introduced 03/22/2024) Committees: House - Science, Space, and Technology Latest Action: House - 03/22/2024 Referred to the House Committee on Science, Space, and Technology. (All Actions) Tracker: 8 1Introduced Summary(0) Text(1) Actions(2) Titles(2) Amendments(0) Cosponsors(0) Committees(1) Related Bills(0) ♦)) Listen I ► There is one version of the bill. Text available as: XMUHTML XMUHTML (new window)_(19KB) TXT (13KB), PDF (239KB) O Shown Here: Introduced in House (03/22/2024) 118TH CONGRESS 2H. R. 7797 D SESSION To direct the Secretary of Energy to establish a pilot program on ocean fertilization and restoration research and development, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 22, 2024 Mr. CARTER of Georgia introduced the following bill; which was referred to the Committee on Science, Space, and Technology A BILL To direct the Secretary of Energy to establish a pilot program on ocean fertilization and restoration research and development, and for other purposes. Be it enacted by the Senate and House of'Representatives of'the United States ofAnterica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Ocean Restoration Research and Development Act". Page 109 of 115 https://www.congress.gov/bill/118th-congress/house-bill/7797/text 116 2/13/25, 6:15 PM Text - H.R.7797 - 118th Congress (2023-2024): Ocean Restoration Research and Development Act 1�Cene�ass�M � yore 9 Gu06: a. SEC. 2. FINDINGS; SENSE OF CONGRESS. HVC�� f1 I I C7V� fF (a) FINDINGS. —The Congress finds the following: (1) Rising greenhouse gas concentrations has been linked to a number of adverse environmental conditions and threatens the health of the global environment. (2) Emissions reductions and natural carbon sequestration methods to stabilize and decrease global greenhouse gas concentrations should be pursued. (3) The oceans have the capacity to hold 50 times more carbon than the terrestrial systems and atmosphere. (4) The National Academies has recognized the potential benefits of methodologies that enhance ocean -based carbon dioxide removal (marine CDR) and called for more research to assess their potential to mitigate t11e impacts of climate change. (5) Ocean iron fertilization and other marine CDR techniques hold great potential to efficiently accelerate carbon dioxide removal from the atmosphere. (6) Ocean iron fertilization and replenishment mimics natural processes such as the influx of aeolian dust and volcanic ash that provide iron supplements to iron -limited open oceans. (7) Ocean iron fertilization also stimulates ocean productivity, phytoplankton growth, and fish populations. (8) Several national and international climate strategies include specifications that methods to restore or enhance ocean photosynthesis are accepted as valid and will produce measurable and significant carbon capture and sequestration or storage referred to as a form of blue carbon. (b)SENSE Or CONGRESS. —It is the sense of the Congress that conducting pilot projects for research and development of ocean iron fertilization and other marine CDR techniques is urgent and in the Nation's vital interest to better understand and advance climate restoration and should be a priority for the Secretary. SEC. 3. OCEAN FERTILIZATION RESEARCH AND DEVELOPMENT PILOT PROGRAM. (a) ESTABLISHMENT. —The Secretary of Energy shall establish a pilot program for the research and development of ocean iron fertilization and other marine CDR techniques that have the potential to achieve regional -to -global scale carbon dioxide removal, ocean restoration, enhancement of fisheries, or conservation of marine mare pals. (b) REQUIREMENTS. --The pilot program established under subsection (a) shall include Page 110 of 115 https://www.congress.gov/bill/118th-congress/house-bill/7797/text 2/6 2/13/25, 6:15 PM Text - H.R.7797 - 118th Congress (2023-2024): Ocean Restoration Research and Development Act jC.q[E?UA ' 4�ir�1V�,grf ��, a. (1) an applied research and development incentive program, including monitoring I I C of effects on ecosystems; (2) demonstration projects, including commercial scale by private industry; (3) engineering, design, environmental and economic analysis; (4) an assessment of the efficacy of ocean iron fertilization and other marine CDR replenishment techniques to — (A) absorb and sequester greenhouse gasses and restore marine ecosystems; (B) replicate those practices under varying conditions; and (C) assess secondary environmental impacts and associated verification methodologies; and (5) a data management plan to include access and archive functions to allow for interagency scientific discovery. (c) CONSULTATION. —In carrying out the pilot program established under subsection (a), the Secretary shall consult and collaborate with— (1) the heads of other relevant Federal departments and agencies, including — (A) the Administrator of the National Oceanic and Atmospheric Administration; (B) the Secretary of the Treasury; (C) the Administrator of the Environmental Protection Agency; (D) the Director of the Bureau of Ocean Energy Management; and (E) the Director of the National Science Foundation; (2) institutions of higher education; (3) the National Oceanographic Partnership Program; and (4) representatives from other relevant private and public sector organizations. (d) PROGRAM GOALS AND OBJrCTrv6s.—In consultation with the entities described in subsection (c), the Secretary shall within 1 year of enactment of this Act develop goals and objectives for the pilot program established under subsection (a), taking into consideration— (1) the acceleration of the development of ocean iron fertilization technologies and other marine CDR practices that have transformational ocean restoration, carbon removal, and carbon storage characteristics; Page 111 of 115 https://www.congress.gov/bill/118th-congress/house-bill/7797/text 3/6 2/13/25, 6:15 PM Text - H.R.7797 - 118th Congress (2023-2024): Ocean Restoration Research and Development ActjCar yM I�+�rerv,oF rroro..a. (2) the utilization of, to the maximum extent practicable, environmental data C1V� ii�� collected by — (A) the entities described in subsection (c); (B) the Defense Advanced Research Projects Agency through the Ocean of Things program; (C) the National Aeronautics and Space Administration through the Plankton, Aerosol, Cloud, ocean Ecosystem mission; (D) NOAXs Joint Polar Satellite System and Gcostationary Operational Environmental Satellites, and data available from the National Centers for Environmental Information; (E) the Integrated Ocean Observing System of the National Oceanic and Atmospheric Administration; and (F) the United States Navy, through the Marine Mammal Program; (3) support for sites for safe testing and demonstration; (4) the need to enter into cooperative agreements to carry out and expedite meso- scale demonstration projects; (5) compliance with relevant international laws and treaties, if applicable; (6) any benefits or barriers to the commercial deployment of any such technologies and practices; and (7) the need for adequate data sharing and management protocols among all participants to ensure that the data and information collected from the pilot project is available to the science community and the public. (e) ELIGIBLE. ENTITIES. —In carrying out the pilot program established under subsection (a). the Secretary shall have the authority to contract with private or public entities provided that— (1) the entity has demonstrated experience with ocean iron fertilization, other marine CDR techniques, or expertise in oceanography; (2) at least 51 percent of project costs arc to be provided by sources of funding other than Federal fimds,- and (3) certain data collected from such projects is made available to the Secretary to demonstrate efficacy of ocean iron fertilization or other marine CDR techniques, subject to the protection of all proprietary data. Page 112 of 115 https://www.congress.gov/bill/l18th-congress/house-bill/7797/text 4/6 2/13/25, 6:15 PM Text - H.R.7797 - 118th Congress (2023-2024): Ocean Restoration Research and Development ActjCg9WA I W9M .a- (f) STATE AND TRIBAL INVOLVEMENT. —Ill consultation with the Secretary, States 1V� and Tribes may enter into contracts with private and public entities to advance ocean iron fertilization for carbon sequestration or fisheries restoration. (g) PRIORITIEs.—In carrying out the pilot program established under subsection (a), the Secretary shall, to the maximum extent practicable, prioritize activities that— (1) take place in pelagic waters; (2) will not cause or accelerate harmful algal blooms in coastal waters; and (3) restores ocean primary productivity. (h) REPORT To CONGRESS. —Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing (1) the program goals and objectives adopted under subsection (d); (2) improving and enhancing techniques for ocean iron fertilization and other marine CDR techniques; (3) any results, successes, and related co -benefits to marine mammals and fisheries, and any direct, indirect, and cumulative impacts to the environment carrying out the pilot program established under subsection (a); (4) the potential to undertake large-scale projects and utilize international waters for demonstration projects; (5) applicability of Research and Development tax credits and other means to incentivize private investment: (6) any policies or permitting recommendations for work conducted in United States and international waters; and (7) any other information the Secretary considers relevant. (1) SYMPOSIUM. —Not later than 2 years after the date of enactment of this Act, the Secretary shall convene a symposium, bringing together experts from academia, industry and government to assess the status of deployment, best practices, innovation and technologies, and ongoing research and development related to iron fertilization and other marine CDR techniques for ocean restoration. 0) WAIVER. —Notwithstanding any other provision of law, the Secretary shall have the authority to waive any other legal requirements the Secretary, in the Secretary's sole discretion, determines necessary to ensure expeditious development and implementation of the pilot projects under this section. Any such decision by the Secretary shall be effective upon being published in the Federal Register. Page 113 of 115 https://www.congress.gov/bill/118th-congress/house-bill/7797/text 5/6 2/13/25, 6:15 PM Text- H.R.7797 - 118th Congress (2023-2024): Ocean Restoration Research and Development' &MNtYA I1�bLeryAf-Ifto:a- (k) FEDERAL COURT Rrvlrw. -The district courts of the United States shall have I I C�Y� try exclusive jurisdiction to hear all causes or claims arising from any action undertaken, or any decision made, by the Secretary pursuant to subsection 0). A cause of action or claim may only be brought alleging a violation of the Constitution of the United States. The court shall not have jurisdiction to hear any claim not specified in this subsection. (1) AUTHORIZATION OF APPROPRIATIONS. —There are authorized to be appropriated to carry out this section $33,000,000 for each of fiscal years 2025 through 2030. (m) DEFINITIONS. —In this section: (1) COASTAL WATERS. --The term "coastal waters" means the land and sea areas bordering the shoreline where hypoxic conditions exist or are likely to occur due to excess nutrients. (2) OCEAN RESTORATION. —The term "ocean restoration" includes the research and development of technologies and techniques that support the addition of trace elements or nutrients to the upper layers of the ocean for the purpose of stimulating phytoplankton activity. (3) PELAGIC WATERS. —The term "pelagic waters" means the part of the open sea or ocean other than coastal waters. (4) OCEAN IRON FERTILIZATION. —The tenn `ocean iron fertilization" means introduction of low concentrations of iron to high nutrient, low chlorophyll regions of the ocean surface to stimulate phytoplankton production. (5) MARINE CDR TECHNIQUES. —In addition to ocean iron fertilization, other marine CDR techniques include, but are not limited to, ocean alkalinity enhancement, electrochemical approaches, and kelp and seaweed cultivation. Page 114 of 115 hftps://www.congress.gov/bill/118th-congress/house-bill/7797/text 6/6 AGENDA ITEM #8.a. KODIAK ISLAND BOROUGH Meeting Type: Assembly Work Session Date: Ff b - l 3, =-s Please PRINT your name legibly Phone number OAV-(-e0,P c a(-rn.q `,) • SqS r i Page 115 of 115