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FY2020-14 Resoultion No. FY2020-14 Identifying Federal Program Priorities And A Capital Improvement Program For Federal Fiscal Year 2020 and 20211 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 Introduced by: Manager Powers Drafted by: Special Projects Support Introduced on: 11/07/2019 Adopted on: 11/07/2019 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2020-14 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING FEDERAL PROGRAM PRIORITIES AND A CAPITAL IMPROVEMENT PROGRAM FOR FEDERAL FISCAL YEAR 2020 & 2021 WHEREAS, the Alaska Congressional Delegation has requested the views of the Kodiak Island Borough on which federal programs and projects should be considered priorities, in no particular order, 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 and projects are as follows: 1. Groundfish Surveys: The Kodiak Island Borough remains concerned over reduced groundfish trawl surveys in the Gulf of Alaska. Groundfish are very important to Kodiak fisheries, representing 60 percent of all our landings. These surveys provide data on groundfish species abundance which is then used to set fishing quotas. Inadequate data creates the possibility of reduced quotas as fisheries managers seek to control fishing effort on a precautionary basis. The National Marine Fisheries Service (NMFS) has been seeking to reduce the number of vessel surveys — both those using Federal fishery research vessels as well as private chartered vessels -- from five to four. The Borough submitted a FY 2020 Federal request to the Delegation seeking five annual surveys — both public and private. The FY 2020 Senate Commerce, Justice, Science Appropriations Bill, which funds the National Marine Fisheries Service, includes report language that states — "The Committee notes that any reduction in fisheries survey coverage is unacceptable, especially in areas where the distribution of fish stocks are changing due to climate change. Therefore, an additional $2,000,000 above the fiscal year 2019 enacted level is provided for NMFS to maintain historical levels of fisheries survey coverage in fiscal year 2020. At this funding level the Committee expects NMFS to contract no less than five vessels for Alaskan bottom trawl surveys and cooperative research..." The Borough urges that the House -Senate Conference adopt this language during negotiations on a final FY 2020 bill and support its inclusion in the FY 2021 appropriations bills when they are developed next year. 2. Gulf of Alaska Pacific Cod Fisheries Disaster: The Pacific Cod fishery is important to Kodiak. Our fishermen and processors suffered significant losses in this fishery in 2018 due to the unfortunate effects on the species of the "warm blob" in North Pacific waters. The Secretary of Commerce formally approved the Governor's fishery Kodiak Island Borough, Alaska Resolution No. FY2020-14 Page 1 of 5 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 disaster request this fall for the Pacific Cod fishery in the Gulf of Alaska. The next step is for the U.S. Department of Commerce to allocate prior appropriated funds to the Gulf Pacific Cod Disaster and for the State of Alaska to prepare a spend plan that that addresses the different sectors of the fishery impacted by the disaster. We request that the Delegation communicate to the Secretary of Commerce the urgent need to allocate sufficient funding and promptly approve a State of Alaska spend plan. 3. Alaska Pink Salmon Disaster Funding: After a long and delayed process, funds for the AK pink salmon disaster in 2016 are about to be distributed to eligible fishermen and processors. $31.8 million will go to fishermen (including captain/crew); $17.7 million to processors (15 percent set aside for processing workers) and $3.6 million to research and mitigate the cause of the disaster. The State's spend plan also calls for $2.4 million to go to local coastal governments for foregone fish taxes as a result of the reduced landings of pink salmon that year. The Department of Commerce and Office of Management & Budget (OMB) initially rejected that portion of the State's spend plan, claiming that the funding had to be used by local governments for a dedicated activity connected to the fishery such as shoreside infrastructure. The Pacific States Marine Fisheries Commission, the grant applicant and funding distributor delegated by NOAH, has submitted a second application for the $2.4 million. It takes into account the suggestions made by the Department and OMB and is now under review. We urge that the Delegation continue to press for approval of this portion of the spend plan. 4. North Pacific Observer Program: Observers are an important part of managing the halibut and groundfish fisheries in the Gulf of Alaska. Over 400 observers work in the program on board fishing vessels as well as at processing plants to gather data used in managing these fisheries in a sustainable way. Kodiak generally benefits from a well-run and adequately funded observer program through expanded economic opportunities for its groundfish and halibut fleet and processing sector. Gulf of Alaska fishery participants pay into the North Pacific Observer Fund to cover the costs of .,partial coverage' for Gulf fishing sectors. Partial coverage has been in decline due to the dramatic increase in observer coverage costs. The FY 2020 Senate Commerce, Justice, Science Appropriations Bill includes $1 million to supplement the partial coverage program. The Borough urges the House -Senate Appropriation Conference to include this increase in a final FY 2020 bill. We also support $2 million in supplemental funding for the program in the FY 2021 appropriations bill next year. 5. Homeporting U.S. Coast Guard Vessels And Kodiak Base Infrastructure Improvements: Continued infrastructure development at the USCG Base in Kodiak along with Coast Guard vessel homeporting expansion plans remain a high priority for the Kodiak Island Borough. The Base is an excellent location for vessels from all of the new major Coast Guard vessel classes, including Polar Security Cutters (PSC), National Security Cutters (NSC), Offshore Patrol Cutters (OPC), and Fast Response Cutters (FRC). The construction of the first new Polar Security Cutter has been funded and contract awarded, with the FY 2020 House Department of Homeland Security Kodiak Island Borough, Alaska Resolution No. FY2020-14 Page 2 of 5 91 (DHS) Appropriations Bill providing a down payment for the construction of the second 92 vessel. The first PSC is expected to be completed in 2023. For the FRC program, 93 funding in the FY 2020 House DHS Appropriations Bill would be adequate for 94 construction of five more vessels; the Senate would fund four craft. The Coast Guard 95 has announced that two FRCs will be homeported in Kodiak. Funding in the House bill 96 for the NSC program would go toward the long lead-time materials for construction of 97 a 12'h NSC. Both bills would fund construction of a 3'' OPC and provide long lead- 98 time materials for construction of two more vessels in this class. For FY 2020 and 99 subsequent out-years, significant investments are planned for the Kodiak Base's 100 shoreside infrastructure (including housing) as well as environmental remediation in 101 order to be ready for the new vessel classes. This includes -- $25 million for 102 infrastructure improvements to support both FRC and OPC homeporting, with 103 estimates for OPC homeporting spending projected at $63 million through FY 2024; 104 $32 million in housing upgrades; and $31 million for environmental remediation. We 105 welcome these investments and the Coast Guard's commitment to the Base. We 106 appreciate the Delegation's support for the Base as a future homeport for the new 107 vessel classes and urge continued advocacy as future Coast Guard decisions are 108 made. 109 110 6. Payment-In-Lieu-of-Taxes (PILT): The Borough submitted FY 2020 Federal 111 requests with the Alaska Congressional Delegation earlier this year for continued 112 funding of PILT as we have done in years past and seek to do so for FY 2021. This 113 is a very important revenue source to the Borough, given that there are over 2.8 million 114 acres removed by the Federal Government from taxation within the boundaries of the 115 Kodiak Island Borough. This is land that would otherwise be available to the private 116 sector to develop, creating jobs for the residents of Kodiak and the rural Kodiak Island 117 communities. PILT funds supplement Borough resources to provide basic social 118 services, including medical facilities, emergency fire and rescue services, roads, and 119 schools to our island communities. Both the House and Senate FY 2020 Interior 120 Appropriations Bills include full funding for the PILT program. The Borough supports 121 enactment of the legislation, continued funding in FY 2021 and thanks the Delegation 122 for its support of the program. 123 124 7. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): The Kodiak Island 125 Borough opposes the termination of appropriations for this program. While not as 126 significant as PILT, the National Wildlife Refuge Fund is a critical source of 127 replacement revenue to communities like ours that have the presence of a large 128 Federal wildlife refuge within their boundaries. The President's FY 2020 budget 129 request again proposes to eliminate Federal appropriations for this important program. 130 The Borough submitted FY 2020 Federal requests with the Alaska Congressional 131 Delegation earlier this year to maintain funding for the program. We understand that 132 both the House and Senate FY 2020 Interior Appropriations Bills include level funding 133 for the program. The Borough supports enactment of the legislation, thanks the 134 Delegation for continued support of the program, and seeks continued funding for it in 135 FY 2021. Kodiak Island Borough, Alaska Resolution No. FY2020-14 Page 3 of 5 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 8. Essential Air Service (EAS) & Air Traffic Control Privatization: The FAA reauthorization bill extends the EAS program for five years and rejected efforts to privatize our nation's Air Traffic Control system. While the debate on the latter issue has settled for the moment, annual EAS funding still remains a concern. The Administration is seeking just under a 30 percent cut to EAS in its FY 2020 budget request. Without full funding of the EAS program, we would lose or have vastly reduced air service to our island communities. Earlier this year, the Borough submitted an FY 2020 Federal request for level funding of $175 million for EAS. Level funding is provided in the FY 2020 House Transportation -Housing Appropriations Bill, while its Senate counterpart contains a 7 percent cut. The Borough favors the House number during House -Senate negotiations on a final bill. The Borough also supports level funding for FY 2021. 9. U.S. Navy Arctic Presence: Selection of Kodiak as a potential Navy base or staging area as the U.S. expands its security presence in the Arctic is a long-term goal for the Borough. The Borough seeks to continue to keep Kodiak "on the radar screen" with the Delegation and Department of Defense as future Arctic plans develop. There is adequate land at our Coast Guard Base as well as a deep water port at Womens Bay that could support the Navy's presence. The Borough appreciates the continuing engagement of the Delegation on this issue. 10. Anton Larsen Bay Road Extension Project: The Kodiak Island Borough has submitted this project as a Federal request to the Delegation the last few years in hopes that Congress will resume the practice of Congressionally directed spending, otherwise known as earmarks. While both the House and Senate have opted not to resume the practice this year, the Borough is submitting this project as a Federal request in case there is a shift in policy in the future. 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. Both the Ouzinkie Native Corporation through its subsidiary, the Spruce Island Development Corporation, and the Sun'aq Tribe of Kodiak have agreed to partner on the project. Its total project cost is $8 million. 11. Broadband Service To Rural Areas: The Borough reiterates the importance of improving broadband service to our rural island communities. The poor internet service experienced by many of our communities has a negative impact on the delivery of important public services as well as commerce. The Borough understands that the Federal Communications Commission's (FCC) Alaska Plan provides the necessary funding from the Connect America Fund for significant investments by Alaska telecom providers in rural broadband. These investments will help bring improve Internet service speed and coverage to the more remote parts of the State by 2025. The key to our villages receiving broadband service will be the carriers making necessary Kodiak Island Borough, Alaska Resolution No. FY2020-14 Page 4 of 5 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 "middle" and "last" mile investments on the Island. We continue to urge the Alaska Delegation to encourage telecom providers in our region to make those investments as part of implementation of the FCC Alaska Plan. The USDA has grant/loan programs (Telecommunications Infrastructure Loan Program & Community Connect Grant Program) that could fund "last mile" broadband infrastructure programs once the Alaska Plan begins to move forward. The Borough, in cooperation with a local internet provider, could then submit a funding application with USDA's program. If so, we would seek Delegation support for our application. 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 THISSEVENTH DAY OF NOVEMBER, 2019. KODIAOPD OROUGH ATTEST: -� tee, Mayor Bill oberts Ta a Welinsky, Clerk VOTES: Ayes: Turner, Arndt, Dvorak, Schroeder, Skinner Absent: Symmons Kodiak Island Borough, Alaska Resolution No. FY2020-14 Page 5 of 5