2017-09-28 Work Session
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www.kodiakak.us www.facebook.com/Kodiakislandborough @KodiakBorough
Kodiak Island Borough
Assembly Work Session
Thursday, September 28, 2017, 6:30 p.m.
School District Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular
meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work
session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work
sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen’s
comments at work sessions are NOT considered part of the official record. Citizen’s comments intended for the “official
record” should be made at a regular Assembly meeting.
Page
1. CITIZENS’ COMMENTS (Limited to Three Minutes per Speaker)
2. AGENDA ITEMS
3 - 4
a.
Legislative Update - Borough Lobbyist Mark Hickey
Sept 2017 KIB Report
5 - 11
b.
State Capital Improvement Projects Items and Process
Resolution No. FY2017-13 FY17 State CIP
PZ FY2018-01 CIP
12 - 19
c.
Federal Capital Improvement Project Items and Process
Resolution No. FY2017-38 Federal Program and CIP List
Federal Program Priorities DRAFT RESOLUTION
d.
Discussion About The Need For An Ordinance For Comp Plan
Amendments
3. PACKET REVIEW
PUBLIC HEARING
Ordinance No. FY2018-08 Amending The KIB Future Land Use Map
By Changing The Future Land Use Designation of Lot 26A, U.S. Survey
3098 From Urban Residential To Commercial (P&Z Case 17-028).
Ordinance No. FY2018-09 Rezoning Lot 26A, U.S. Survey 3098 From
R1-Single-Family Residential District to B-Business District (P&Z Case
No. 17-029).
CONTRACTS
Contract No. FY2018-11 Professional Services Agreement For U.S.
EPA Brownfield Grant Implementation Between The Kodiak Island
Borough And Stantec Consulting Services Inc.
Page 1 of 19
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RESOLUTIONS
Resolution No. FY2018-10 Accepting The Recommendation Of The
Planning And Zoning Commission By Approving Retention Of Lots 11 -
14, Block 4 and Tract R2, Killarney Hills Subdivision (P&Z Case No. 17 -
011).
OTHER ITEMS
Appointment To The Borough Lands Committee ANCSA
Representative Seat (Mr. David Anderson).
Temporary Appointment Of Assembly Member Scott Smiley To the
Kodiak Fisheries Work Group.
EXECUTIVE SESSION
Real Property Negotiations And Strategies Regarding the Providence
Counseling Center Officers
4. MANAGER’S COMMENTS
5. CLERK’S COMMENTS
6. MAYOR’S COMMENTS
7. ASSEMBLY MEMBERS COMMENTS
8. FUTURE DISCUSSION ITEMS
Assembly Policy Manual
Emergency Management Review
Page 2 of 19
KIB Lobbyist Report 1 September 23, 2017
Hickey & Associates
Planning * Management * Lobbying
Telephone (907) 723-8574 211 Fourth Street; Suite 110; Juneau, AK 99801
E-mail mshickey@gci.net
Memorandum
To: Mayor Dan Rohrer, Borough Assembly &
Manager Michael Powers
From: Mark Hickey, Borough Lobbyist
Date: September 23, 2017
Subject: Lobbyist Report
This memorandum provides a brief status report, including information on the results of the three special
legislative sessions held this year.
Fourth Special Session: On September 22, Governor Walker called the fourth special session of the
30th Alaska State Legislature to begin in Juneau on October 23. Public safety and new revenue are
the stated topics. Specific measures listed on the call are Senate Bill No. 54 to address lingering problems
created by last year’s major crime reform bill (SB 91), and a new proposal to impose a flat wage tax. The
revenue measure creates a new payroll tax of 1.5% of wages earned by Alaskans and non-resident
workers capped at $2,200 (or twice the previous year’s permanent fund dividend – whichever is
higher). Details on this measure can be found at Walker Head Tax Proposal.
Revenue Sharing/Education Funding: The approved FY 2018 budgets contain $38 million for
revenue sharing using the current formula for distribution (which is the same amount provided in
FY 2017). This include the added funding in the recently approved capital budget. Funding of the K-12
education foundation formula also continues at the FY 2017 amount.
M/V Tustumena Replacement Funding: Full funding of $244 million for replacement of the M/V
Tustumena was provided in this year’s capital budget. The new vessel will likely not be in service until
2021 or later.
AMHS Service: The approved Alaska Marine Highway System operating budget for the current
year (FY 2018) is roughly the same as FY 2017 - except for a recently discovered funding glitch that
will require a $23 million supplemental to fix. The M/V Chenega will remain in layup status for FY
2018 and may be sold. The M/V Tustumena came into service in August and is scheduled to run most of
the winter, working the Homer-Kodiak and Chain runs.
AMHS Reform Project: This week I attend the Southeast Conference Annual Meeting held in Haines. A
major focus of these proceedings focused on the draft second phase report on the AMHS Reform Initiative.
The draft report and other documents can be found at AMHS Reform Project. Comments are due October
6. Most of the discussion focused on how to fix the FY 2018 funding shortfall (noted above), forward
funding, and submitting legislation to make AMHS a public corporation.
AGENDA ITEM #2.a.
Legislative Update - Borough Lobbyist Mark Hickey
Page 3 of 19
KIB Lobbyist Report 2 September 23, 2017
Oil Tax Credit Reform/2017 PFD Payment: The 30th Alaska State Legislature passed legislation (HB
111) to eliminate the state system of cash payments to oil companies, turning the credits into deductions
against future tax liabilities. Work is continuing to address other oil tax reforms in 2018. The PF dividend
was set by the legislature at $1,100 per person for this year.
New Revenue Measures/PF Restructuring: While the House passed a state income tax bill this session
(HB 115), the Senate turned it down by a vote of 4 to 15. Neither body passed the governor’s proposal to
triple the state’s motor fuel taxes. Both bodies passed versions of the proposal to restructure the Alaska
Permanent Fund (SB 26), but no further action was taken on this measure during the extended and special
sessions.
Walker/Mallott Seek Re-Election: On August 21, Governor Bill Walker and Lt. Governor Byron
Mallott filed to seek re-election as independents. Former Senator Charlie Huggins (R-Wasilla) recently
announced his intent to run as a Republican. Former U.S. Senator Mark Begich (D-Anchorage) is exploring
the possibility on the Democrat side.
Please let me know if there are any questions.
AGENDA ITEM #2.a.
Legislative Update - Borough Lobbyist Mark Hickey
Page 4 of 19
Kodiak Island Borough Resolution No. FY2017-13
Page 1 of 4
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KODIAK ISLAND BOROUGH 9
RESOLUTION NO. FY2017-13 10
11
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND 12
BOROUGH ADOPTING A STATE LEGISLATIVE CAPITAL 13
IMPROVEMENT PROJECTS PRIORITY LIST FOR THE 2017 14
LEGISLATIVE SESSION 15
16
WHEREAS, the Kodiak Island Borough represents approximately 14,000 residents of the 17
Kodiak Island Archipelago living in six incorporated cities and one community governed by 18
a tribal council government; and 19
20
WHEREAS, a Borough–wide capital improvement program has been adopted by the 21
Kodiak Island Borough Planning & Zoning Commission which identifies major needs of the 22
island community for the next five years; and 23
24
WHEREAS, the Kodiak Island Borough Assembly has identified major projects to submit 25
to the Alaska Governor and State Legislative Delegation for funding consideration; 26
27
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK 28
ISLAND BOROUGH THAT: 29
30
Section 1: The Kodiak Island Borough’s State Legislative capital improvement project 31
priorities for the 2017 legislative session are as follows: 32
33
1. M/V Tustumena Replacement Vessel Construction 34
Estimated Project Cost $238,000,000 35
36
The M/V Tustumena was built in 1964 and serves the communities of South Central, 37
Kodiak Island and Southwest Alaska. It is one of two ocean class vessels in the Alaska 38
Marine Highway System (AMHS) fleet. Because of its size and design, it is the only AMHS 39
vessel that is capable of serving all 13 ports of call between Homer and Unalaska. 40
Retiring and replacing the M/V Tustumena with a vessel that is equally, if not more, 41
versatile and seaworthy will provide reliable marine transportation service well into the 42
future for the communities, residents and businesses in South Central, Kodiak Island and 43
Southwest Alaska (from the Alaska Marine Highway System website). 44
45
The M/V Tustumena is an essential service to the communities of Kodiak Island. As such, 46
the Kodiak Island Borough is requesting that the legislature concur with the funding plan 47
for the construction of the replacement vessel as described in the 2016-2019 STIP 48
Amendment 1. 49
50
51
Introduced by: Borough Manager
Requested by: Borough Assembly
Drafted by: Special Projects Support
Introduced: 10/06/2016
Postponed: 10/06/2016
Postponed: 10/20/2016
Amended: 10/27/2016
Adopted: 10/27/2016
AGENDA ITEM #2.b.
State Capital Improvement Projects Items and Process
Page 5 of 19
Kodiak Island Borough Resolution No. FY2017-13
Page 2 of 4
2. Safe Pathways to Schools 52
53
A. Safe Pedestrian Access to Kodiak Schools 54
Estimated Project Cost $1,300,000 55
State Funding Request $1,300,000 56
57
Poor visibility of crosswalks in school zones is a safety hazard! Local weather and 58
traffic degrade the paint on crosswalks; and pedestrians waiting to cross are often 59
difficult to see due to the long season of dark days, inclement weather, and busy traffic 60
at popular intersections. 61
62
Rezanof Drive is a state owned roadway and is the main road through the City of 63
Kodiak. Pedestrians needing to cross this road to access schools that include Kodiak 64
Middle School, Main Elementary School, East Elementary School and Kodiak College 65
must wait for a break in traffic or for motorists to notice their intent to cross and stop to 66
allow the crossing. The Kodiak Island Borough is requesting funding for AKDOT to 67
purchase and install lighted automated crosswalks at intersections of Rezanof Drive 68
and Powell Street, and Rezanof Drive and Benny Benson Street to increase 69
pedestrian safety near schools located along Rezanof Drive. 70
71
72
B. Safe Pathways to North Star Elementary School 73
Estimated Project Cost $1,500,000 74
State Funding Request $1,500,000 75
76
Northstar Elementary School is located on a hill amongst several residential 77
neighborhoods. Many roads connecting those neighborhoods around the school are 78
narrow, steep, and winding dirt roads without sidewalks or separated pathways to 79
keep pedestrians safe from vehicular traffic. The Kodiak Safe Routes to Schools Plan 80
(2013) describes a need for separated pathways or trails to connect the residential 81
neighborhoods to the school. 82
83
C. East Elementary Traffic Flow Improvements 84
Estimated Project Cost $2,000,000 85
State Funding Request $2,000,000 86
87
There is a safety issue in the East Elementary School parking lot. The school was 88
constructed in 1966 with a substantial addition in 1988. The facility now totals 39,842 89
square feet with twenty-five teaching stations. Since the expansion, increased traffic 90
flows have created dangerous vehicle/student hazards when students are entering 91
and leaving school. Reconfiguration of the parking area will reduce risks by providing 92
for a safer separation of pedestrians, small vehicle traffic and bus loading/unloading. 93
The project will require an increase in the total area of the parking lot to allow 94
adequate parking to support increased building usage and occupant load. 95
96
AGENDA ITEM #2.b.
State Capital Improvement Projects Items and Process
Page 6 of 19
Kodiak Island Borough Resolution No. FY2017-13
Page 3 of 4
3. Drainage Improvements to the Chiniak Highway at Sargent Creek 97
Estimated Project Cost $54,000 98
State Funding Request $54,000 99
100
Heavy rains along with high tides consistently cause Sargent Creek to flood and diverge 101
from its channel. This causes flooding at the intersection of the Chiniak Highway and 102
Sargent Creek Road. Recent heavy rain events have necessitated intermittent closure of 103
the intersection due to water on the roadway deep enough to disable vehicle engines. 104
This intersection is the only roadway in and out of Bells Flats subdivision. The flooding 105
occurring here impedes safe travel and often leaves motorists stranded and unable to 106
reach homes or critical services located in town. 107
108
This request is to provide the DOT in Kodiak funding to construct spot improvements for 109
bank stabilization, armoring, and rechanneling as needed to keep the Sargent Creek in its 110
channel and stop the flooding of the roadway. 111
112
4. Anton Larsen Bay Road Extension to Ice Free Water 113
Estimated Project Cost $8,450,000 114
Funding Acquired 450,000 115
State Funding Request $8,000,000 116
117
An extension of the Anton Larsen Bay Road to ice free waters will provide year around 118
access to communities located in the Kupreanof Strait as well as those who use the 119
island’s west side for commercial and recreational purposes. Many times during the year 120
travel by vessel to and from Kodiak is treacherous. Extending the road to ice free waters 121
makes traveling safer, and provides safer access to critical services located in the City of 122
Kodiak including hospitals and businesses. This route was identified in the Kodiak 123
Transportation Plan as an important upland facility. 124
125
The Ouzinkie Native Corporation subsidiary, Spruce Island Development Corporation 126
(SIDCO) received a $450,000 legislative grant for planning and design to construct two 127
miles of gravel road extending the Anton Larsen Road and to construct a parking area and 128
boat launch ramp at the road’s termination, a beach near Crag Point. 129
130
Funding is requested to the Department of Transportation and Public Facilities for 131
construction of this road as it is an extension of an existing state roadway. The land 132
owner, Ouzinkie Native Corporation, has agreed to donate ownership of the road right-of-133
way to the State when construction funding is obtained. 134
135
136
5. Monashka Bay Water and Sewer Project: Feasibility, Planning and Design 137
Estimated Project Cost $500,000 138
State Funding Request $500,000 139
140
There are 256 residential parcels that lie outside the reach of the existing sanitary sewer 141
and public water utilities in the Monashka Bay area. The soil and topography in this area 142
are not ideal for septic systems and many are failing. The construction of a wastewater 143
treatment facility at the Kodiak landfill provides an option for future expansion that could 144
include sanitary sewer treatment for the residents of this area. Water in this neighborhood 145
is provided by wells, cisterns and frequently by tank from a distant public source. Water 146
quality and quantity are questionable in the Monashka Bay neighborhood. Extension of 147
water service from the City of Kodiak will be needed. A feasibility study, planning and 148
design is the first step in providing water and sewer services to the residents of the 149
Monashka Bay area. 150
151
AGENDA ITEM #2.b.
State Capital Improvement Projects Items and Process
Page 7 of 19
Kodiak Island Borough Resolution No. FY2017-13
Page 4 of 4
152
6. Traffic Safety Lighting between Kodiak City Limits and Benny Benson State 153
Airport 154
Estimated Project Cost $5,500,000 155
State funding request: $5,500,000 156
157
This request is to provide funding to the Department of Transportation for planning and 158
design, and development of a plan of prioritized phased construction for the installation of 159
street lighting along Rezanof Drive between the City of Kodiak and the Benny Benson 160
State Airport. This section of roadway is approximately five miles of dark two lane road 161
with an average speed limit of 45 miles per hour. It is a heavily travelled stretch of road 162
used by those going to and from the state airport, working on the United States Coast 163
Guard Base and commuting between outlying communities and the City of Kodiak. 164
165
Section 2: The Kodiak Island Borough administration is hereby instructed to advise 166
our State of Alaska Governor and Legislative Delegation of the Capital Improvement 167
Projects Priority List adopted by the Kodiak Island Borough Assembly. 168
169
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 170
THIS TWENTY SEVENTH DAY OF OCTOBER, 2016 171
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AGENDA ITEM #2.b.
State Capital Improvement Projects Items and Process
Page 8 of 19
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Kodiak Island Borough, Alaska Resolution No. FY2017-38
Page 1 of 3
Introduced by: Manager Powers 1
Drafted by: Special Projects Support 2
Introduced on: 05/04/2017 3
Adopted on: 05/04/2017 4
5
KODIAK ISLAND BOROUGH 6
RESOLUTION NO. FY2017-38 7
8
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING 9
FEDERAL PROGRAM PRIORITIES FOR FEDERAL FISCAL YEAR 2018 10
11
WHEREAS, the Alaska Congressional Delegation has requested the views of the Kodiak 12
Island Borough on which federal programs should be considered priorities for rural Alaskan 13
communities and their residents.; and 14
15
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 16
BOROUGH that the Kodiak Island Borough’s views and recommendations on priority federal 17
programs are as follows: 18
19
1. Groundfish Surveys: The North Pacific Fishery Management Council has raised 20
concerns with the National Oceanic and Atmospheric Administration about what appears to be a 21
reduction in the number, the spatial extent and the consistency of the winter and summer 22
groundfish surveys occurring in the Gulf of Alaska. The diminution in these surveys will 23
eventually negatively affect Kodiak fishermen and processors should the North Pacific Fisheries 24
Management Council add additional precautionary buffers to what already exists in the 25
establishment of annual groundfish quotas due to insufficient stock assessment data. A 26
reduction in federal groundfish quotas for pollock, cod, and rockfish would result in lost 27
economic opportunities for Kodiak residents and lower raw fish tax receipts over time. The 28
Kodiak Island Borough recommends that the Alaska Delegation support the Surveys & 29
Monitoring activity at the Fiscal Year 2016 appropriated level. 30
31
2. Homeporting Coast Guard Vessels: The Kodiak Island Borough would like to 32
emphasize that Kodiak remains the ideal location for the deployment of National Response 33
Cutters and Offshore Patrol Cutters, and the clustering of Fast Response Cutters. Kodiak sits at 34
the crossroads of one of the largest fisheries in the world as well as some of the busiest 35
shipping lanes in U.S. waters. Kodiak offers unmatched geographic advantage for timely 36
mission response and deployment to the myriad of marine incidents in the Alaska area of 37
operation. The Borough recognizes that Kodiak Island also presents unique mission support 38
challenges such as a constraint on housing and mooring facilities. The Borough stands ready to 39
work with the Coast Guard in whatever way possible to keep this location ideal for capital asset 40
placement. The Borough supports the President’s Budget Request for Coast Guard vessel 41
construction. We request that the Delegation actively monitor the Coast Guard’s planning 42
process for future deployment of new assets in the Arctic and promote Kodiak as a homeport for 43
these new vessel classes. 44
45
AGENDA ITEM #2.c.
Federal Capital Improvement Project Items and Process
Page 12 of 19
Kodiak Island Borough, Alaska Resolution No. FY2017-38
Page 2 of 3
3. Payment-In-Lieu-of-Taxes: There are over 2.8 million acres removed by the Federal 46
Government from taxation within the boundaries of the Kodiak Island Borough. This is land that 47
would otherwise be available to the private sector to develop, creating jobs for the residents of 48
Kodiak and the rural Kodiak Island communities. This in turn would create tax revenues for the 49
Kodiak Island Borough. PILT was enacted by Congress to help offset the loss of revenues to 50
municipal entities caused by federal land withdrawals within local government boundaries. The 51
KIB uses these funds to provide basic social services, including medical facilities, emergency 52
fire and rescue services, roads, and schools. The Kodiak Island Borough supports full funding of 53
PILT at $452 million. 54
55
4. Refuge Revenue Sharing: The National Wildlife Refuge Fund is a critical source of 56
replacement revenue to communities like ours that have the presence of a large Federal wildlife 57
refuge within their boundaries. That presence removes substantial amounts of property from the 58
local property tax base. The share we receive from the Fund is based on a formula that partially 59
compensates us for our tax losses due to the existence of the Kodiak National Wildlife Refuge. 60
The Refuge is over 1.9 million acres in size and therefore has permanently removed from 61
private ownership, development and taxation over half the property on the island. The Kodiak 62
Island Borough is seeking the Alaska Delegation’s assistance in providing level funding for this 63
program. 64
65
5. EPA’s Fishing Vessel Discharge Rule: EPA has promulgated two rules to require 66
commercial fishermen to obtain Clean Water Act incidental discharge permits as a condition for 67
operating both small and large fishing vessels. The permits would cover ballast water, fish hold 68
water, anchor chain mud, deck wash/runoff, bilge pump discharge, gray or “stick” water, 69
laundry, shower, and galley sink water. The permits require burdensome reporting, monitoring, 70
inspections and compliance activities – all subject to heavy fines and citizen lawsuits under the 71
Clean Water Act for what seems to be minimal environmental protection. The Congress has 72
imposed a three year moratorium preventing EPA from implementing the Small Vessel General 73
Permit Rule and the Vessel General Permit Rule. Efforts are underway within the Congress to 74
make the moratorium permanent. The Kodiak Island Borough is requesting that the Alaska 75
Delegation actively support a permanent moratorium. 76
77
6. Karluk Lake Enrichment Project: The Karluk Lake system, on the west side of Kodiak 78
Island, is the largest producer of sockeye salmon in the Kodiak area, and supports a large 79
portion of the area's commercial and subsistence sockeye fisheries. Since 2007, returns of adult 80
sockeye to the Karluk system were extremely poor for a number of years. In order to bring the 81
Karluk Lake ecosystem back to its earlier, higher level of production, the Kodiak Regional 82
Aquaculture Association (KRAA) proposed to apply nutrients over the course of up to five years. 83
This lake enrichment project follows established protocols for rehabilitating sockeye salmon 84
rearing environments. Since Karluk Lake is within the Kodiak National Wildlife Refuge and a 85
pre-statehood withdrawal, however, the Fish and Wildlife Service decided to perform a 86
compatibility review and an environmental assessment. This process took over three years. 87
Despite strong support from the Alaska Congressional Delegation and local residents and 88
groups, the FWS completed its environmental assessment in January and selected the No 89
Action alternative. The agency did not issue a compatibility decision, stating that sockeye 90
salmon stocks within the Karluk system are within their historic levels. 91
AGENDA ITEM #2.c.
Federal Capital Improvement Project Items and Process
Page 13 of 19
Kodiak Island Borough, Alaska Resolution No. FY2017-38
Page 3 of 3
While the Karluk Lake sockeye returns have improved since 2007, there remains a possibility 92
that run trends can reverse and create hardship for local fisheries. The KRAA has been 93
informed by FWS that the Environmental Assessment action alternative could be reconsidered if 94
lake conditions deteriorate and the sockeye returns collapse again. The agency decided, 95
however, not to make a compatibility determination. This is the key policy decision surrounding 96
the proposal to add nutrients to Karluk Lake in the event of a collapse. Revisiting the issue 97
could take two or more years if FWS has to engage in both an EA and compatibility review, 98
thereby hampering KRAA’s ability to respond quickly to changes in the productivity of the lake 99
system. The Kodiak Island Borough therefore is requesting support from the Alaska 100
Congressional Delegation to advocate for a compatibility decision to resolve the policy question 101
in advance of any sudden change in circumstances. 102
103
7. Rural Air Service & FAA Reauthorization Legislation – The Borough is strongly 104
opposed to provisions in House legislation -- H.R. 4441, the Aviation Innovation, Reform, and 105
Reauthorization Act – that would seek to cut funding and “reform” the Essential Air Service 106
(EAS) Program as well as privatize the Federal government’s air traffic control operations. H.R. 107
4441 would cut EAS funding by 1/3rd and give the Secretary of Transportation unilateral 108
authority to waive designation of EAS to a community if he/she determines it to be in the “public 109
interest.” EAS is critical to maintaining rural air service to the Borough’s communities. 110
Reductions in funding or waivers threaten the continuation of such service to those communities 111
or would substantially raise its cost. Privatization of air traffic control operations through the 112
creation of a new corporate entity would subject rural airport NAVAIDs, personnel, and safety 113
equipment to a business model, cost-benefit test which is unlikely to fare well compared to 114
busier, more urban or major hub airports. Furthermore, the new corporate entity has the 115
flexibility to raise air carrier and cargo user fees and could price rural air service providers out of 116
the market which it might choose to do if those airports are determined to be “not profitable.” 117
The Borough urges the Delegation to oppose these provisions and the legislation in its current 118
form. 119
120
BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 121
that the Kodiak Island Borough administration is hereby instructed to advise Congress and the 122
appropriate agencies of the United States Federal Government of these priorities adopted by 123
the Kodiak Island Borough Assembly. 124
125
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 126
THIS FOURTH DAY OF MAY, 2017. 127
128
129
VOTES: 130
Ayes: Crow, Skinner, Smiley, Symmons, Townsend, Van Daele 131
Absent: LeDoux 132
AGENDA ITEM #2.c.
Federal Capital Improvement Project Items and Process
Page 14 of 19
Kodiak Island Borough, Alaska Resolution No. FY2018-12
Page 1 of 5
Introduced by: Manager Powers 1
Drafted by: Special Projects Support 2
Introduced on: 3
Adopted on: 4
5
KODIAK ISLAND BOROUGH 6
RESOLUTION NO. FY2018-12 7
8
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING 9
FEDERAL PROGRAM PRIORITIES AND A CAPITAL IMPROVEMENT PROGRAM FOR 10
FEDERAL FISCAL YEAR 2018 11
12
WHEREAS, the Alaska Congressional Delegation has requested the views of the Kodiak 13
Island Borough on which federal programs should be considered priorities for rural Alaskan 14
communities and their residents.; and 15
16
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 17
BOROUGH that the Kodiak Island Borough’s views and recommendations on priority federal 18
programs are as follows: 19
20
1. Groundfish Surveys: Groundfish Surveys in the Gulf of Alaska are funded through a 21
line item in NMFS’s budget called Fisheries Data Collections, Surveys and Assessments. The 22
President’s FY 2018 budget request recommends a 6 percent reduction in funding for this 23
account. This line item funds critical data collection, fish stock assessments and longstanding 24
fishery surveys nationally. For Alaska, the surveys include the Alaska crab fisheries; Gulf of 25
Alaska and Bering Sea pollock and groundfish, rockfish, halibut, and sablefish. The North 26
Pacific Fishery Management Council and NMFS rely upon these fishery surveys to determine 27
annual catch limits and monitor the health of these stocks. Last year, we faced the prospect of 28
NMFS considering a reduction in the number, the spatial extent and the consistency of the 29
winter and summer groundfish surveys occurring in the Gulf of Alaska. Over time, a reduction in 30
these surveys could have negatively affected Kodiak fishermen and processors through 31
cutbacks in annual groundfish quotas due to insufficient stock assessment data. The Kodiak 32
Island Borough recommends that the Alaska Delegation support the Fisheries Data Collections, 33
Surveys and Assessments line item at the Fiscal Year 2017 appropriated level of $164 million 34
and to maintain oversight of NMFS’s survey activity in the Gulf of Alaska to ensure continued 35
and regular winter and summer groundfish surveys. 36
37
2. Homeporting Coast Guard Vessels: The Kodiak Island Borough would like to 38
emphasize that Kodiak remains the ideal location for the deployment of National Response 39
Cutters and Offshore Patrol Cutters, and the clustering of Fast Response Cutters. Kodiak sits at 40
the crossroads of one of the largest fisheries in the world as well as some of the busiest 41
shipping lanes in U.S. waters. Kodiak offers unmatched geographic advantage for timely 42
mission response and deployment to the myriad of marine incidents in the Alaska area of 43
operation. The Borough recognizes that Kodiak Island also presents unique mission support 44
challenges such as a constraint on housing and mooring facilities. The Borough stands ready to 45
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work with the Coast Guard in whatever way possible to keep this location ideal for capital asset 46
placement. Earlier this year, the Coast Guard provided Congress information on its latest 47
vessels acquisition and deployment plans in the region. It has assigned two Offshore Patrol 48
Cutters (360 ft.) to the Kodiak Coast Guard Base, with delivery expected to be in the 2022-23 49
timeframe. The agency intends to deploy and homeport six 154’ Fast Response Cutters (FRC) 50
in the Gulf of Alaska to be used for search & rescue, coastal patrol, drug interdiction, and fishery 51
enforcement, with the first two vessels already assigned. The Coast Guard has not yet made a 52
homeport decision on the remaining four FRCs, but a decision is likely by the end of this year. 53
The Kodiak Coast Guard Base is a candidate for homeporting two FRCs. We request that the 54
Delegation continue to actively monitor the Coast Guard’s planning process for future 55
deployment of new assets in the Arctic and promote Kodiak as a homeport for these new vessel 56
classes. 57
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3. Pink Salmon Disaster Assistance: The Borough strongly supports efforts by the 59
Alaska Delegation to secure Federal fishery disaster assistance due to the major decline in pink 60
salmon harvest and abundance last year. The Governor of Alaska has submitted a disaster 61
request to the Delegation and the Secretary of Commerce earlier this year formally declared a 62
fishery disaster in accordance with the procedures of the Magnusson-Stevens Fishery 63
Management And Conservation Act. Pink salmon are an important commercial species for 64
Kodiak fishermen and processors. A recent analysis by ADF&G shows that average ex-vessel 65
value annual landings were $16.8 million for the Kodiak Management Area in the five harvest 66
years prior to 2016, with a high of $28.8 million in 2012. In 2016, landings value dropped to 67
$3.2 million, an 81 percent decline and one of the largest decreases in the State. This request 68
affirms a separate resolution considered and passed by the Borough in February. 69
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4. Payment-In-Lieu-of-Taxes (PILT): There are over 2.8 million acres removed by the 71
Federal Government from taxation within the boundaries of the Kodiak Island Borough. This is 72
land that would otherwise be available to the private sector to develop, creating jobs for the 73
residents of Kodiak and the rural Kodiak Island communities. This in turn would create tax 74
revenues for the Kodiak Island Borough. PILT was enacted by Congress to help offset the loss 75
of revenues to municipal entities caused by federal land withdrawals within local government 76
boundaries. The KIB uses these funds to provide basic social services, including medical 77
facilities, emergency fire and rescue services, roads, and schools. The President’s budget 78
request proposes a 12 percent cut in PILT funding for FY 2018. Kodiak Island Borough 79
opposes this reduction and supports full funding of PILT at its existing level of $465 million. 80
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5. Refuge Revenue Sharing: The National Wildlife Refuge Fund is a critical source of 82
replacement revenue to communities like ours that have the presence of a large Federal wildlife 83
refuge within their boundaries. That presence removes substantial amounts of property from the 84
local property tax base. The share we receive from the Fund is based on a formula that partially 85
compensates us for our tax losses due to the existence of the Kodiak National Wildlife Refuge. 86
The Refuge is over 1.9 million acres in size and therefore has permanently removed from 87
private ownership, development and taxation over half the property on the island. The 88
President’s FY 2018 budget request proposes to eliminate Federal appropriations for this 89
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important program. The Kodiak Island Borough opposes this termination of funding and is 90
seeking the Alaska Delegation’s assistance in providing level funding for this coming fiscal year. 91
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6. EPA’s Fishing Vessel Discharge Rule: EPA has promulgated two rules to require 93
commercial fishermen to obtain Clean Water Act incidental discharge permits as a condition for 94
operating both small and large fishing vessels. The permits would cover ballast water, fish hold 95
water, anchor chain mud, deck wash/runoff, bilge pump discharge, gray or “stick” water, 96
laundry, shower, and galley sink water. The permits require burdensome reporting, monitoring, 97
inspections and compliance activities – all subject to heavy fines and citizen lawsuits under the 98
Clean Water Act for what seems to be minimal environmental protection. The Congress has 99
imposed a three year moratorium preventing EPA from implementing the Small Vessel General 100
Permit Rule and the Vessel General Permit Rule. The moratorium is set to expire on December 101
19th later this year. Legislation is pending in the House and Senate that would make the 102
moratorium permanent. The Kodiak Island Borough is requesting that the Alaska Delegation 103
actively support a permanent moratorium. 104
105
7. Karluk Lake Enrichment Project: The Karluk Lake system, on the west side of Kodiak 106
Island, is the largest producer of sockeye salmon in the Kodiak area, and supports a large 107
portion of the area's commercial and subsistence sockeye fisheries. Since 2007, returns of adult 108
sockeye to the Karluk system were extremely poor for a number of years. In order to bring the 109
Karluk Lake ecosystem back to its earlier, higher level of production, the Kodiak Regional 110
Aquaculture Association (KRAA) proposed to apply nutrients over the course of up to five years. 111
This lake enrichment project follows established protocols for rehabilitating sockeye salmon 112
rearing environments. Since Karluk Lake is within the Kodiak National Wildlife Refuge and a 113
pre-statehood withdrawal, however, the Fish and Wildlife Service decided to perform a 114
compatibility review and an environmental assessment. This process took over three years. 115
Despite strong support from the Alaska Congressional Delegation and local residents and 116
groups, the FWS completed its environmental assessment in January and selected the No 117
Action alternative. The agency did not issue a compatibility decision, stating that sockeye 118
salmon stocks within the Karluk system are within their historic levels. 119
120
While the Karluk Lake sockeye returns have improved since 2007, there remains a possibility 121
that run trends can reverse and create hardship for local fisheries. The KRAA has been 122
informed by FWS that the Environmental Assessment action alternative could be reconsidered if 123
lake conditions deteriorate and the sockeye returns collapse again. The agency decided, 124
however, not to make a compatibility determination. This is the key policy decision surrounding 125
the proposal to add nutrients to Karluk Lake in the event of a collapse. Revisiting the issue 126
could take two or more years if FWS has to engage in both an EA and compatibility review, 127
thereby hampering KRAA’s ability to respond quickly to changes in the productivity of the lake 128
system. The Kodiak Island Borough therefore is requesting support from the Alaska 129
Congressional Delegation to advocate for a compatibility decision to resolve the policy question 130
in advance of any sudden change in circumstances. 131
132
8. Essential Air Service & Air Traffic Control Privatization – The President’s FY 2018 133
budget request recommends terminating appropriations for the Essential Air Service (EAS) 134
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program. Like many rural communities in Alaska and elsewhere in the nation, providing air 135
service to Kodiak is expensive. EAS ensures that the Borough’s communities receive regular 136
air service. Without it, air carriers would either raise ticket prices above their already high levels 137
or discontinue service altogether. We thank the Delegation for its support of EAS over the years 138
and urge the restoration of EAS funding in the FY 2018 appropriations process. Secondly, we 139
understand that the House is again considering legislation to reauthorize the FAA that includes 140
formation of a privatized Air Traffic Control Services Corporation. As we noted in our 2016 141
Federal priorities resolution, privatization of air traffic control operations through the creation of a 142
new corporate entity would subject rural airport NAVAIDs, personnel, and safety equipment to a 143
business model, cost-benefit test which is unlikely to fare well compared to busier, more urban 144
or major hub airports. Furthermore, the new corporate entity has the flexibility to raise air carrier 145
and cargo user fees and could price rural air service providers out of the market which it might 146
choose to do if those airports are determined to be “not profitable.” The Borough urges the 147
Delegation to oppose these provisions and the legislation in its current form. 148
149
9. Anton Larsen Bay Road Extension -- An extension of the Anton Larsen Bay Road to 150
ice free waters will provide year around access to those communities located in the Kupreanof 151
Strait as well as those who use the island’s west side for commercial and recreational purposes. 152
Extending the road to ice free waters makes traveling safer, providing access to critical services 153
located in the City of Kodiak, including hospitals and businesses. The Ouznikie Native 154
Corporation has agreed through its subsidiary, the Spruce Island Development Corporation, to 155
provide $450,000 toward the project and to donate land to the State for the road’s right of way. 156
The Sun’aq Tribe of Kodiak is separately seeking Federal funding to contribute to the project. 157
Total project cost is $8 million. We understand at some point in this Congress, there will be 158
consideration of an infrastructure investment package. We are submitting this request should 159
there be inclusion of specific projects in the legislation and for the Delegation to highlight the 160
need for adequate funding in the package for rural infrastructure needs. 161
162
BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 163
that the Kodiak Island Borough administration is hereby instructed to advise Congress and the 164
appropriate agencies of the United States Federal Government of the Capital Improvement 165
Program and priorities adopted by the Kodiak Island Borough Assembly. 166
167
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 168
THIS __________ DAY OF _______________, 2017. 169
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KODIAK ISLAND BOROUGH ATTEST: 171
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___________________________ ___________________________ 174
Daniel A. Rohrer, Mayor Nova M. Javier, MMC, Clerk 175
176
VOTES: 177
Ayes: 178
Noes: 179
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KODIAK ISLAND BOROUGH
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