FY2018-12 Identifying Federal Program Priorities And A Capital Improvement Program For Federal Fiscal Year 20181
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Introduced by: Manager Powers
Drafted by: Special Projects Support
Introduced on: 11/02/2017
Amended: 11/02/2017
Adopted on:11/02/2017
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2018-12
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING
FEDERAL PROGRAM PRIORITIES AND A CAPITAL IMPROVEMENT PROGRAM FOR
FEDERAL FISCAL YEAR 2018
WHEREAS, the Alaska Congressional Delegation has requested the views of the Kodiak Island
Borough on which federal programs should be considered priorities for rural Alaskan communities
and their residents.; and
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 are as follows:
1. Groundfish Surveys: The Kodiak Island Borough recommends that the Alaska
Delegation support the Fisheries Data Collections, Surveys and Assessments line item at the
Fiscal Year 2017 appropriated level of $164 million and maintain oversight of NMFS's survey
activity in the Gulf of Alaska to ensure continued and regular winter and summer groundfish
surveys. Groundfish Surveys in the Gulf of Alaska are funded through a line item in NMFS's
budget called Fisheries Data Collections, Surveys and Assessments. The President's FY 2018
budget request recommends a 6 percent reduction in funding for this account. This line item
funds critical data collection, fish stock assessments and longstanding fishery surveys nationally.
For Alaska, the surveys include the Alaska crab fisheries; Gulf of Alaska and Bering Sea pollock
and groundfish, rockfish, halibut, and sablefish. The North Pacific Fishery Management Council
and NMFS rely upon these fishery surveys to determine annual catch limits and monitor the health
of these stocks. Last year, we faced the prospect of NMFS considering a reduction in the number,
the spatial extent and the consistency of the winter and summer groundfish surveys occurring in
the Gulf of Alaska. Over time, a reduction in these surveys could have negatively affected Kodiak
fishermen and processors through cutbacks in annual groundfish quotas due to insufficient stock
assessment data.
2. Homeporting Coast Guard Vessels: The Kodiak Island Borough would like to
emphasize that Kodiak remains the ideal location for the deployment of National Response
Cutters and Offshore Patrol Cutters, and the clustering of Fast Response Cutters. Kodiak sits at
the crossroads of one of the largest fisheries in the world as well as some of the busiest shipping
lanes in U.S. waters. Kodiak offers unmatched geographic advantage for timely mission response
and deployment to the myriad of marine incidents in the Alaska area of operation. The Borough
recognizes that Kodiak Island also presents unique mission support challenges such as a
Kodiak Island Borough, Alaska
Resolution No. FY2018-12
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constraint on housing and mooring facilities. Earlier this year, the Coast Guard provided Congress
information on its latest vessel acquisitions and deployment plans in the region. It has assigned
two Offshore Patrol Cutters (360 ft.) to the Kodiak Coast Guard Base, with delivery expected to
be in the 2022-23 timeframe. The agency intends to deploy and homeport six 154' Fast Response
Cutters (FRC) in the Gulf of Alaska to be used for search & rescue, coastal patrol, drug
interdiction, and fishery enforcement, with the first two vessels already assigned. The Coast
Guard has not yet made a homeport decision on the remaining four FRCs, but a decision is likely
by the end of this year. The Kodiak Coast Guard Base is a candidate for homeporting two FRCs.
We request that the Delegation continue to actively monitor the Coast Guard's planning process
for future deployment of new assets in the Arctic and promote Kodiak as a homeport for these
new vessel classes.
The Kodiak Island Borough stands ready to work with the Coast Guard in whatever way possible
to keep this location ideal for capital asset placement and to obtain federal impact aid funding to
support a greater Coast Guard presence in Kodiak.
3. Pink Salmon Disaster Assistance: The Borough strongly supports efforts by the Alaska
Delegation to secure Federal fishery disaster assistance due to the major decline in pink salmon
harvest and abundance last year. The Governor of Alaska has submitted a disaster request to
the Delegation and the Secretary of Commerce earlier this year formally declared a fishery
disaster in accordance with the procedures of the Magnusson -Stevens Fishery Management And
Conservation Act. Pink salmon are an important commercial species for Kodiak fishermen and
processors. A recent analysis by ADF&G shows that average ex -vessel value annual landings
were $16.8 million for the Kodiak Management Area in the five harvest years prior to 2016, with
a high of $28.8 million in 2012. In 2016, landings value dropped to $3.2 million, an 81 percent
decline and one of the largest decreases in the State. This request affirms a separate resolution
considered and passed by the Borough in February.
4. Payment -In -Lieu -of -Taxes (PILT): The President's budget request proposes a 12
percent cut in PILT funding for FY 2018. Kodiak Island Borough opposes this reduction and
supports full funding of PILT at its existing level of $465 million. There are over 2.8 million acres
removed by the Federal Government from taxation within the boundaries of the Kodiak Island
Borough. This is land that would otherwise be available to the private sector to develop, creating
jobs for the residents of Kodiak and the rural Kodiak Island communities. This in turn would create
tax revenues for the Kodiak Island Borough. PILT was enacted by Congress to help offset the
loss of revenues to municipal entities caused by federal land withdrawals within local government
boundaries. The KIB uses these funds to provide basic social services, including medical facilities,
emergency fire and rescue services, roads, and schools.
5. Refuge Revenue Sharing: The Kodiak Island Borough opposes the termination of
funding and is seeking the Alaska Delegation's assistance in providing level funding for this
coming fiscal year. 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. That presence removes substantial amounts of property from the local property tax
base. The share we receive from the Fund is based on a formula that partially compensates us
Kodiak Island Borough, Alaska Resolution No. FY2018-12
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for our tax losses due to the existence of the Kodiak National Wildlife Refuge. The Refuge is over
1.9 million acres in size and therefore has permanently removed from private ownership,
development and taxation over half the property on the island. The President's FY 2018 budget
request proposes to eliminate Federal appropriations for this important program.
6. EPA's Fishing Vessel Discharge Rule: The Kodiak Island Borough is requesting that
the Alaska Delegation actively support a permanent moratorium preventing EPA from
implementing the Small Vessel General Permit Rule and the Vessel General Permit Rule. EPA
has promulgated these two rules to require commercial fishermen to obtain Clean Water Act
incidental discharge permits as a condition for operating both small and large fishing vessels. The
permits would cover ballast water, fish hold water, anchor chain mud, deck wash/runoff, bilge
pump discharge, gray or "stick" water, laundry, shower, and galley sink water. The permits require
burdensome reporting, monitoring, inspections and compliance activities — all subject to heavy
fines and citizen lawsuits under the Clean Water Act for what seems to be minimal environmental
protection. The Congress has imposed a three year moratorium preventing EPA from
implementing the Small Vessel General Permit Rule and the Vessel General Permit Rule. The
moratorium is set to expire on December 1911 later this year. Legislation is pending in the House
and Senate that would make the moratorium permanent.
7. Essential Air Service & Air Traffic Control Privatization: The Borough urges the
Delegation to oppose provisions and legislation that terminate the Essential Air Service Program
and initiate the privatization of Air Traffic Control. The President's FY 2018 budget request
recommends terminating appropriations for the Essential Air Service (EAS) program. Like many
rural communities in Alaska and elsewhere in the nation, providing air service to Kodiak is
expensive. EAS ensures that the Borough's communities receive regular air service. Without it,
air carriers would either raise ticket prices above their already high levels or discontinue service
altogether. We thank the Delegation for its support of EAS over the years and urge the restoration
of EAS funding in the FY 2018 appropriations process. Secondly, we understand that the House
is again considering legislation to reauthorize the FAA that includes formation of a privatized Air
Traffic Control Services Corporation. As we noted in our 2016 Federal priorities resolution,
privatization of air traffic control operations through the creation of a new corporate entity would
subject rural airport NAVAIDs, personnel, and safety equipment to a business model, cost -benefit
test which is unlikely to fare well compared to busier, more urban or major hub airports.
Furthermore, the new corporate entity has the flexibility to raise air carrier and cargo user fees
and could price rural air service providers out of the market which it might choose to do if those
airports are determined to be "not profitable."
8. U.S. Navy Arctic Presence: The Kodiak Island Borough Assembly requests that the
Alaska Congressional Delegation strongly consider Kodiak during any discussion with the
Defense Department regarding the expansion of the Navy into Alaska. The U.S. National Strategy
for the Arctic has been evolving. The current Arctic Roadmap adopted by the Chief of Naval
Operations sets out four strategic objectives: (1) Ensuring sovereignty of the United States'
Arctic region; (2) Providing ready naval forces to respond to crises and contingencies; (3)
Preserving freedom of navigation; and (4) Promoting partnerships within the U.S. government
and its international allies and partners. The Kodiak Island Borough understands that the
Kodiak Island Borough, Alaska Resolution No. FY2018-12
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Department of the Navy is currently conducting a study about whether the achievement of these
objectives merits a greater Naval presence in Alaska. The Borough Assembly believes
achievement of the National Strategy must include a larger Navy presence, including the
establishment of Navy ports -of -call in strategically located Alaskan coastal communities and
possibly a full-time Navy base. Kodiak is ideally situated to serve both as a port -of -call for
logistics movements and Rest -and -Recreation for deployed sailors. Additionally, the Coast
Guard maintains a deep water port at Womens Bay. There is sufficient land adjacent to the
Coast Guard Base which could be used for an expanded full-time Navy presence.
9. Upper Hidden Basin Diversion Power Project — The Kodiak Island Borough requests
support of this local rural electrical power infrastructure project. The Upper Hidden Basin
Diversion project will connect an additional water source to Kodiak Electric Association's existing
Terror Lake Hydroelectric Facility, which is Kodiak's primary source of power. The new diversion
consists of two small diversion dams on two small upland streams. Surface water from the
diversion dam on the eastern stream would flow through a half -mile long underground pipe to the
diversion dam on the western stream. From there, surface water from both diversion dams would
flow by gravity through a 1.2 mile long tunnel under a mountain ridge to Terror Lake. The project
also includes a four mile long spur road off of an existing road to provide access for constructing
and maintaining the new diversion. Once the additional water from the Upper Hidden Basin area
reaches Terror Lake, additional power can be produced with existing equipment already in
operation at the Terror Lake Hydroelectric Project. No changes are needed to the existing Terror
Lake dam, penstock, powerhouse, or transmission line. No new turbines or other equipment will
be needed. The Upper Hidden Basin Diversion will simply optimize this existing power generation
infrastructure, resulting in a more enhanced and efficient use of a local facility.
The Upper Hidden Basin Diversion Project will add 33 million additional kilowatt-hours of energy
to KEA's isolated electric grid. Kodiak's only other alternative to meeting Kodiak's power needs
is with diesel oil. Diesel power costs over four times more than hydropower, is dependent on fuel
barge shipments from outside refineries, and is subject to strict oil storage and air quality
regulations. The supply of water from Upper Hidden Basin Diversion can generate the same
amount of power as 2.2 million gallons of diesel per year and avoid 540 tons of nitrogen oxide
and 25,500 tons of greenhouse gas pollution annually by displacing diesel for power, light, and
heat. Local hydropower is a clean, long-term fixed -cost asset that remains independent of fuel
supply, price volatility or pollution liabilities. Hydropower provides the lowest cost of power in
Kodiak and makes Kodiak energy independent and energy secure.
10. Anton Larsen Bay Road Extension -- The Kodiak Island Borough request support of this
rural road infrastructure project. An extension of the Anton Larsen Bay Road to ice free waters
will provide year around access to those communities located in the Kupreanof Strait as well as
those who use the island's west side for commercial and recreational purposes. Extending the
road to ice free waters makes traveling safer, providing access to critical services located in the
City of Kodiak, including hospitals and businesses. The Ouzinkie Native Corporation has agreed
through its subsidiary, the Spruce Island Development Corporation, to provide $450,000 toward
the project and to donate land to the State for the road's right of way. The Sun'aq Tribe of Kodiak
Kodiak Island Borough, Alaska Resolution No. FY2018-12
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is separately seeking Federal funding to contribute to the project. Total project cost is $8 million.
We understand at some point in this Congress, there will be consideration of an infrastructure
investment package. We are submitting this request should there be inclusion of specific projects
in the legislation and for the Delegation to highlight the need for adequate funding in the package
for rural infrastructure needs.
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 priorities adopted by the Kodiak Island Borough Assembly.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SECOND DAY OF NOVEMBER, 2017.
KODIAK ISLAND BOROUGH
Daniel A. Rohrer, Mayor
ATTEST:
Nova M. Javier, MMC, erk
UNANIMOUS VOTE:
Ayes: Crow, Kavanaugh, Schroeder, Skinner, Smiley, Symmons, Van Daele
Kodiak Island Borough, Alaska
Resolution No. FY2018-12
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