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FY2025-17 Identifying Federal Project And Program Priorities For Federal Fiscal Years 2025 And 20261 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 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: 1. 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. Herman Harbor Infrastructure Replacement. (Phase 1 - $10,000,000). St. Herman Harbor (SHH) was built by the State of Alaska in 1982 and has been a vital facility for Kodiak's large and diverse commercial fishing, logistics, and subsistence 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 local, other Alaskan communities and the West Coast. With the exception of a few minor upgrades over the years, and annual maintenance the original float system is beyond its useful life and is in need of replacement. The proposed project would result in the reconstruction of St. Herman Harbor with the replacement of most of its float system in two phases. Currently, the harbor has been losing use of multiple floats per year due to aging and the saltwater elements, and increased storm activity, both in frequency and severity. Any float loss results in 2 vessel berths along with the revenue generated for the harbor. This rate of failure has increased exponentially in recent 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 pilings, broken concrete decking, rotting walers and bullrails, and an outdated electrical system. These floats contain non -compliant electrical pedestals, failed fire suppression lines, no blackwater services and inconsistent potable water availability. 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 harbor replacement is scheduled in two Resolution No. FY2025-17 Page 1 of 6 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 phases, with the City funding of $1,900,000 to begin the project. Total estimated cost is at $73-99 million. In the fall of 2024, the City was awarded a $11,250,000 grant from MARAD's Port Infrastructure Development Program to be used for phase one of the project. Phase one will see construction of a new "O" float with critically needed large vessel (100-foot plus) berthing, and a drive down dock capability. Initially, this float will be used to provide necessary berthing to facilitate the rebuild. Phase one is estimated at between $23-33 million. In 2023, Turnagain Marine Construction was awarded a competitive contract to complete preliminary design and environmental permitting for the harbor reconstruction with an estimated completion of early 2026. We would like to thank the Alaska Congressional Delegation for its support for this project with the Dept. of Transportation and MARAD. Pending in FY 2025 appropriations is $10 million in Congressionally Directed Spending in the Senate Transportation -Housing Urban Development Appropriations Bill for the St. Herman Harbor project. We would like to thank Senator Murkowski for requesting these funds. The funds would be used to fund additional design and construction costs for Phase 1. The City of Kodiak is requesting that the $10 million in Congressionally Directed Spending be retained in the final FY 2025 appropriations bill, or if not rolled over into FY 2026. • 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. Additionally, given the increasing threat of extreme weather events and the importance of federal disaster support, the continued presence of FEMA is crucial to ensuring long-term resilience for neighborhoods affected by flood -related damage. 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. I 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. Access to reliable high-speed broadband is not only critical for economic development but also 0 essential for emergency preparedness and disaster response. FEMA, for instance, relies on robust communication networks to provide real-time disaster alerts, coordinate emergency Resolution No. FY2025-17 Page 2 of 6 I L 89 services and support community resilience in the face of earthquakes, tsunamis, and other 90 natural disasters that affect the Kodiak Island Borough. Deployment of high-speed broadband 91 to rural areas continued in FY 2025 through a mix of Federal programs provided through the 92 American Rescue Plan Act, the Bipartisan Infrastructure Law and regular annual Federal 93 appropriations. The primary sources of funding have been or will be through NTIA's Tribal 94 Broadband Program; USDA's Telecommunications Infrastructure Loan Program & 95 Community Connect Grant Program; and the State Broadband Grants Program created by 96 the Bipartisan Infrastructure Law. We support continued rollout of these programs in FY 2026 97 and any broadband applications/projects submitted that would expand or improve service to 98 our Island communities. 99 100 3. Groundfish Surveys: Our Federal resolutions over the years have consistently called for 101 maintenance of effort of Federal groundfish trawl surveys in Alaska. This maintenance of effort 102 is needed as part of the Federal science and data -driven fishery management process to 103 establish sustainable groundfish quotas. It has been supported by the Alaska Congressional 104 Delegation for which we are appreciative. This baseline is for six surveys, one of which is 105 dedicated to movement of fish out of historical survey areas. That funding directive is included 106 in the Senate's FY 2025 appropriations bill funding NOAA. We respectfully request that six 107 Alaska groundfish trawl surveys be continued and funded in the final FY 2025 appropriations 108 bill, and for the FY 2026 funding cycle as well. 109 110 5. Russian Seafood Import Ban: The dumping of seafood products by Russia into the U.S. 111 and international markets has driven down the price of Alaska seafood and hurt Alaska 112 harvesters, processors and fisheries -dependent communities like Kodiak. In March of 2023, 113 the Biden Administration issued an executive order to ban direct Russian seafood imports into 114 the U.S. as part of its sanctions for the Russian invasion of Ukraine. Unfortunately, Russia 115 succeeded in bypassing the sanctions by routing its seafood through reprocessing in and 116 export from China to the U.S. To tighten this loophole, in the Biden Administration issued 117 another Executive Order to further ban Russian imports even if it is processed and sold from 118 another country. Lastly, after a group of Alaska fishing interests attended a roundtable meeting 119 organized by Senator Sullivan this summer with the Secretary of Commerce, the Biden 120 Administration raised the issue at the next European Union ministerial to urge E.U. member 121 nations to similarly ban Russian seafood imports. The E.U. issued a communique after the 122 meeting indicated that it would examine the issue in greater depth. We thank the Delegation 123 for earlier introducing legislation to ban these dumping efforts and for pressing the Biden 124 Administration to take action and urge that continuity of effort extended into the new Trump 125 Administration. Over the coming year, we encourage the Delegation to remain vigilant to 126 ensure that Russia does not find other ways to bypass the ban through re-routing seafood 127 through other third -party countries. 128 129 6. Fisheries Disaster Relief: Congress has enacted fisheries disaster relief reform legislation 130 -- the Fishery Resource Disasters Improvement Act -- that qualifies local government loss of 131 raw fish tax revenues as eligible for reimbursement from future Federal fisheries disaster relief 132 funding. This provision is not mandatory and would require the State of Alaska to include Resolution No. FY2025-17 Page 3 of 6 133 foregone fish taxes as part of its fisheries disaster relief expenditure plans submitted to NOAA. 134 We request the Delegation continue to support adequate appropriations for recent and future 135 approved disaster declarations impacting Kodiak's fisheries. FEMA, too, has been a key 136 partner in disaster recovery for supply chain disruptions and infrastructure damage following 137 extreme weather events in the US, so we ask for support for the availability of FEMA resources 138 when needed to help local fishermen and seafood -dependent communities to recover from 139 federally declared disasters. We thank the Delegation for its support of $300 million in fisheries 140 disaster relief included in the recently enacted Continuing Resolution. 141 142 7. North Pacific Observer Program: Observers are an important part of managing the halibut 143 and groundfish fisheries in the Gulf of Alaska. Gulf of Alaska fishery participants pay into the 144 North Pacific Observer Fund to cover the costs of "partial coverage" for Gulf fishing sectors 145 but there has been a shortfall in funding to cover observer costs in recent years. While 146 Congress did not include the increase in funding for the program that the Borough requested 147 in the FY 2025 appropriations bills, it did include instructions to mitigate the cost impacts on 148 the small vessel fixed gear fleet while the fishery undergoes the transition to electronic 149 monitoring and reporting. We request that an additional $2 million in funding be provided in 150 FY 2026 above base funding along with carryover of language concerning the cost -burdens 151 on the fleet. 152 153 8. U.S. Coast Guard Base -- Kodiak: In recent years, the Coast Guard and Congress has 154 dedicated significant funding for base infrastructure projects, including housing and shoreside 155 infrastructure, to be ready for homeporting the two new each Offshore Patrol and Fast 156 Response Cutters. We very much appreciate the Coast Guard's and Delegation's strong 157 support for these projects and the cutters' homeporting in Kodiak. The Borough is also very 158 interested in Kodiak being a homeport for a new Polar Security Cutter(s) — the Coast Guard's 159 next generation icebreaker -- but we recognize that water depth in Womens Bay cannot 160 support such a deep draft vessel. The Borough supports other locations for a possible 161 icebreaker including an effort by the City to seek Army Corps of Engineers construction of a 162 breakwater and future deep draft dock off Near Island. We urge the Delegation to support that 163 project and be an advocate for Kodiak as a future homeport for a PSC(s). We recognize that 164 there are cost increases and delays in the PSC program, which is not unusual in new major 165 Federal procurements, but appreciate the Delegation's continued support for PSC funding. 166 Lastly, the Senate version of the FY 2025 National Defense Authorization Act (NDAA) again 167 included a provision that would have included the Coast Guard in the Defense Community 168 Infrastructure Program, thus making local infrastructure projects like renovating our 169 elementary school eligible for DCIP funding, but unfortunately the provision was again 170 dropped from the final bill due to opposition from the House Armed Services Committees over 171 use of DOD funding for projects from another Department. We urge the Delegation to revive 172 the effort for FY 2026, either as part of the FY 2026 NDAA, or creation of a stand-alone Coast 173 Guard project dedicated program as part of the biennial Coast Guard Authorization Bill. 174 175 9. Payment -In -Lieu -of -Taxes (PILT): PILT is a very important revenue source to the Borough, 176 given that there are over 2.8 million acres removed by the Federal Government from local I I Resolution No. FY2025-17 Page 4 of 6 r 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 taxation within our boundaries. This is land that would otherwise be available to the private sector to develop, creating jobs for the residents of Kodiak and our rural Kodiak Island communities. PILT funds supplement Borough resources to provide basic social services, including medical facilities, emergency fire and rescue services, roads, and schools to our island communities. These services are often called upon during federally declared disasters, where FEMA plays a crucial role in coordinating relief efforts. The pending FY 2025 appropriations bills provide full funding for PILT. We thank the Delegation for its long-standing support for PILT and urge continued support for full funding in FY 2026. 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. FEMA, for instance, has historically depended on EAS-supported carriers to transport disaster response teams, medical supplies, and emergency relief resources. 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. Resolution No. FY2025-17 Page 5 of 6 221 222 223 224 225 226 227 228 229 230 231 232 233 234 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTIETH DAY OF FEBRUARY, 2025 KODIAK ISLAND BOROUGH A CD i ll9 7 Scott Arndt, Mayor VOTES: Ayes: Johnson, LeDoux, Smiley, and Whiteside Absent: Ames, Griffin, and Sharratt M. Javier, MMC, Clerk Resolution No. FY2025-17 Page 6 of 6