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FY2014-13 Requesting the Governor to Budget Ferry Vessel Replacement in the FY2015 Budget 1 Introduced by: Manager Cassidy 2 Requested by: Borough Assembly 3 Assembly Drafted by: Special Projects Support 4 Christiansen 5 Introduced on: 09/19/2013 6 Adopted on: 09/19/2013 7 KODIAK ISLAND BOROUGH 8 RESOLUTION NO. FY2014-13 9 10 A RESOLUTION OF THE KODIAK ISLAND BOROUGH 11 ASSEMBLY REQUESTING THE GOVERNOR TO INCLUDE IN 12 HIS FY2015 CAPITAL BUDGET A DEPOSIT OF $100 MILLION 13 INTO THE VESSEL REPLACEMENT FUND FOR THE PURPOSE 14 OF CONTRUCTING A NEW OCEAN-GOING VESSEL TO 15 REPLACE THE MN TUSTUMENA 16 17 WHEREAS, the MN Tustumena was built in 1964, is approaching its 50'" year of 18 service, and has had a hard life servicing the Kodiak and Aleutian communities for the 19 past several decades; and 20 21 WHEREAS, the MN Tustumena provides year-round service to the Kodiak area, and 22 journeys out the Aleutian chain ten times each year, providing a critical transportation 23 and tourism link that affects the economies of each community served by this vessel; 24 and 25 26 WHEREAS, the rough and exposed waters of the Aleutians can accelerate the 27 deterioration of any vessel servicing the region; and 28 29 WHEREAS, recent vessel aging problems and repair delays are well documented 30 and have created significant, recurring service disruptions and outages in the region; 31 and 32 33 WHEREAS, the MN Tustumena is at the top of the queue in the AMHS Vessel 34 Replacement Fund, and the legislature appropriated $10 million from this fund in 2013 35 for the design of a new ocean-going vessel to replace the MN Tustumena; and 36 37 WHEREAS, the Alaska Department of Transportation and Public Facilities has begun 38 the design process and estimates that it will take 18 months to complete; and 39 40 WHEREAS, the department estimates construction of the new vessel could cost as 41 much as $210 million; and 42 43 WHEREAS, since it will take another two to three years to construct the new vessel 44 and ready it for service, it is imperative to develop and implement a strategy to ensure 45 construction funding is in place by 2015 to allow an immediate start of vessel 46 construction. Kodiak Island Borough Resolution No. P12014-13 Page 1 of 2 47 48 NOW, THEREFORE BE IT RESOLVED, BY THE ASSEMBLY OF THE KODIAK 49 ISLAND BOROUGH, that the Kodiak Island Borough hereby requests that Governor 50 Parnell include in his FY2015 capital budget a deposit of $100 million into the Vessel 51 Replacement Fund for the purpose of constructing a new ocean-going vessel to replace 52 the MN Tustumena; and 53 54 BE IT FURTHER RESOLVED that the Kodiak Island Borough requests Governor 55 Parnell plan to include in his FY2016 capital budget another deposit into the Vessel 56 Replacement Fund to provide the remaining amount of funding needed to construct a 57 new ocean going-vessel to replace the MN Tustumena. 58 59 60 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 61 THIS NINETEENTH DAY OF SEPTEMBER, 2013 62 63 KODIAK ISLAND BOROUGH 64 65 66 1 Mit _ 67 ATTEST: Ja time M. Selby, :brou h Mayo 68 69 70 rillAryit 71 Nova M. Javier, MC, Bv'ough Clerk Kodiak Island Borough Resolution No. FY2014-13 Page 2 of 2