2019-12-11 Joint Work Session
CITY COUNCIL - BOROUGH ASSEMBLY
JOINT WORK SESSION AGENDA
Wednesday, December 11, 2019
Multi-Purpose Room at the Library
7:30 p.m.
(City Chairing)
Joint work sessions are informal meetings of the Borough Assembly and City Council
where elected officials discuss issues that affect both Borough and City governments
and residents. Although additional items not listed on the joint work session agenda
are sometimes discussed when introduced by elected officials, staff, or members of
the public, no formal action is taken at joint work sessions and items that require
formal action are placed on a regular Borough Assembly and/or City Council meeting
agenda. Public comments at work sessions are NOT considered part of the official
record. Public comments intended for the “official record” should be made at a regular
Borough Assembly or City Council meeting.
Page
1. Public Comments
2. Agenda Items
2 - 4
A.
Salmon Work Group Update and Review of a Draft Letter to
Submit to the Board of Fish for the Kodiak Finfish Meeting To Be
Held in January
DRAFT Letter to Board of Fish
5 - 22
B.
Pink Salmon Disaster Funding Update
Pink Salmon Disaster Funding Update
FAQs For GOA Pink Salmon Disaster
23 - 25
C.
Discuss Use of Kodiak Island Borough and City of Kodiak Cruise
Ship Tax Dollars to Build/Fix the Public Restrooms in the
Downtown Area.
DRAFT Kodiak CPV Profile
2019-12-02 KIB CPV 5 Year Info
D.
Consolidation Update
E.
Annexation Update
3. Next Meeting Schedule
4. Future Discussion Items
Page 1 of 25
December ___, 2019 Chairman Reed Morisky Alaska Board of Fisheries Members Boards Support Section P.O. Box 115526 Juneau, AK 99811-5526 (Letter can be emailed to dfg.bof.comments@alaska.gov) Dear Chairman Morisky: The City of Kodiak looks forward to hosting the Alaska Board of Fisheries here in Kodiak for your January 11-14 Kodiak finfish meeting. Kodiak is a commercial fishing town. We exist as a community because of our fisheries and our economy continues to be based, in large part, on commercial and recreational fishing. Especially important to Kodiak is the salmon fleet’s enormous economic contribution which often provides more than $40,000,000 per year to our community. The massive fishery management changes advocated by proposals 58-64 regarding the Cape Igvak Management Plan and proposals 65, 66 and 37 regarding changes to Kodiak sockeye management could reduce annual Kodiak salmon revenues by more than 1/3. Approving any one or more of these proposals will cause significant economic harm as well as social and cultural upheaval to Kodiak’s harvesters, processors, processing workers, businesses, schools, villages and the entire community.
Consequently, The City of Kodiak strongly opposes Alaska Board of Fisheries
Approval of proposals 58,59.60,61,62,63,64,65,66 and 37!
The Cape Igvak Management Plan has been in place since 1977. The 1977 Alaska Board of Fisheries struck a compromise between Kodiak fishermen that had fished in the area for many years and Chignik fishermen that were focused on catching local stocks by mostly fishing in Chignik lagoon. Unlike many fishery allocations plans that award a strict percentage of the run to competing users, the Cape Igvak management plan specifically guarantees Chignik fishermen a set amount of catch before Kodiak fishermen can fish at Cape Igvak. The plan further limits Kodiak fishermen to a percentage of the overall Chignik run. Consequently, the structure of the Cape Igvak management plan ensures resource conservation in years of low abundance (2018 &19) by altogether prohibiting Kodiak fishermen from fishing at Cape Igvak. In years of greater abundance, Chignik fishermen are awarded a minimum of 300,000 sockeye or approximately 2.5 million dollars in value (@$35,00 per active vessel) before Kodiak fishermen can fish Cape Igvak. The economic and conservation safety net for Chignik illustrates that the Cape
DRAFT
AGENDA ITEM #2.A.
Salmon Work Group Update and Review of a Draft Letter to Submit to the B...
Page 2 of 25
Igvak management plan was not based on some respective strength of the sockeye runs the two areas. If it were, the plan would have tracked the minimum Chignik guarantee to an assessment of the strength of the Chignik run. In summary the Cape Igvak Management Plan already balances economic equities between Kodiak and Chignik and establishes a shared conservation burden. United Cook Inlet Drift Association’s (UCIDA) proposals, 65 and 66, would make wholesale and unwarranted changes to Kodiak’s salmon harvests in multiple areas around Kodiak, setting caps to limit sockeye harvests by week and by area in addition to area closures. Their proposed “harvest caps” are unsupported by harvest data or biology. In addition the caps focused exclusively on sockeye salmon would disrupt a carefully balanced Kodiak management system for pink, chum and coho salmon.
The Kodiak salmon fishery has existed for 135 years, since 1882. Kodiak’s salmon harvesting sector is made up of seine and set gillnet participants—many of which are native Alaskan or 3 and 4th generation fishermen. The Kodiak season lasts for almost four months and changes focus from early run sockeye to pinks and chums and then to coho as they arrive with a transition to late run sockeye. Management of the fishery is focused on all species of local stocks with an emphasis on early encounter by allowing fishing on the capes and capture of high-quality Kodiak salmon for maximum market value. Recent genetic information has provided more detail regarding the randomness and unpredictability of Cook Inlet sockeye in the Kodiak area but it does not show consistent catches of Cook Inlet origin sockeye in any one area or time frame. Moreover, the genetic study confirmed that Kodiak’s catches of Cook Inlet stocks are not above estimates made by the Alaska Department of Fish and Game in the early 1990’s. Large area closures and the “caps” proposed in proposals 65 and 66 will lower fish quality, force derby style fisheries in “near river” areas and reallocate between seine fishermen and set-net fishermen based on a low probability that Cook Inlet stocks would be in a specific section of the Kodiak management area during a specific time frame. The City of Kodiak encourages the Board to carefully apply your Mixed Stock Fisheries Policy as well as your Allocation Criteria to the afore mentioned proposals. As the Mixed Stock Fisheries Policy states regarding the Cape Igvak Management plan. “Most mixed stock fisheries are long standing and have been scrutinized many times by past Boards. Consequently, existing regulatory management plans are understood to incorporate conservation burden and allocation.” The Board’s 7 Allocation Criteria also tip in favor of maintaining the status quo. Kodiak’s commercial salmon harvests are well established without any new or expanding fisheries. The management plans for Kodiak’s salmon fishery have remained essentially unchanged for almost 30 years – back to when Kodiak’s “conservation corridor” was established by the N. Shelikof management plan.
AGENDA ITEM #2.A.
Salmon Work Group Update and Review of a Draft Letter to Submit to the B...
Page 3 of 25
Kodiak enjoys a large resident salmon fishing fleet and the salmon fleet accounts, in most years, for more than 1/3 of Kodiak’s overall fishing income. As representatives of the City of Kodiak we often face proposals and advocates wanting CHANGE to a particular City program, project of policy. Sometimes change in needed and justified by the facts and circumstances. However, we’ve also experienced that when a program or policy is long established and working well, change can have unintended consequences and cause unnecessary harm. We believe this is the situation the Alaska Board of Fisheries faces with regard to proposals 58-66 & 37. Change to Kodiak’s salmon management plans is not justified by the facts and circumstances surrounding the issues and it will result in unintended consequences and unnecessary harm. Therefore, STATUS QUO, is the decision the Board should make. If you have any questions regarding the City of Kodiak’s strong opposition to proposals 58-66 and proposal 37 please do not hesitate to contact me. Very truly yours, Pat Branson, Mayor
AGENDA ITEM #2.A.
Salmon Work Group Update and Review of a Draft Letter to Submit to the B...
Page 4 of 25
'NG@M‘1SFOO
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 5 of 25
al
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 6 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 7 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 8 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 9 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 10 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 11 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 12 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 13 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 14 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 15 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 16 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 17 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 18 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 19 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 20 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 21 of 25
AGENDA ITEM #2.B.
Pink Salmon Disaster Funding Update
Page 22 of 25
February 2020 City of Kodiak
CITY OF KODIAK
Home Rule City
2018 Population: 5,942
FY 2010 to FY 2019 CPV Excise Tax Revenue: $257,389
PROFILE
The City of Kodiak, located on Kodiak Island, is
Alaska's largest island and the second largest island in
the United States. Known as the Emerald Isle, Kodiak’s
verdant landscape and abundant outdoor opportunities
make it a popular choice for nature enthusiasts.
Commercial fishing accounts for about one-third of the
local economy; Kodiak has Alaska's largest and most
diversified fishing fleet including 700 home-ported
commercial fishing vessels and 500 transient vessels.
Kodiak is a renowned sport fishing destination that
offers access to all five species of salmon, along with
halibut, rockfish, cod, and trout.
Kodiak received 156 cruise ship port calls and more
than 146,913 cruise passengers between 2010 and 2019.
Cruise visitation peaked at 25,935 passengers during
2019. Cruise ships made 29 port calls and brought
25,935 visitors to Kodiak during 2019.
Kodiak Cruise Ship Visitors
2010 to 2019
Calendar Year Ship Calls Passengers
2010 21 19,372
2011 15 14,715
2012 12 11,551
2013 7 3,231
2014 10 8,809
2015 12 13,559
2016 15 15,208
2017 20 15,082
2018 15 19,451
2019 29 25,935
Total 156 146,913
Source: Cruise Line Agencies of Alaska.
PROJECTED NEEDS OF COMMUNITY
The City of Kodiak owns Pier 2, a multi-purpose, deep-
draft dock, that serves cruise ships. When the city
receives CPV Excise Tax revenue, it is deposited into a
Cargo Enterprise Fund. The harbormaster and
Discover Kodiak director recommend cruise ship
facility needs to community leaders. Approved projects
relating to cruise passenger movement, dock security,
and safety are funded from the Cargo Enterprise Fund.
The city plans to build a covered
reception/security/restroom facility to accommodate
passengers at Pier 2, but the project is currently
unfunded.
Priority Projects for CPV Revenue
Category Description
Port facilities
Port-related projects to improve safety,
security, and usability of the cruise ship
terminal
Port facilities Planning, designing, and building a public
restroom for Pier 2
Source: City of Kodiak.
CPV REVENUE DISTRIBUTION
When eligible ports of call, such as the City of Kodiak,
are cities located in a borough, the city and the borough
each receive $2.50 of each $5 passenger fee. Between
FY2010 and FY2019, the City of Kodiak’s portion of
CPV revenue was $257,389. The highest distribution
amount was $42,752 received in FY2019.
CPV Revenue Distribution
FY2010 to FY2019
Fiscal Year Amount Passenger
s1
2010 $25,487 10,195
2011 $15,762 6,305
2012 $32,622 13,049
2013 $23,473 9,389
2014 $4,600 1,840
2015 $13,925 5,570
2016 $30,255 12,102
2017 $30,888 12,355
2018 $37,625 15,050
2019 $42,752 17,100
Total $257,389 102,955
Source: Alaska Department of Revenue, Tax Division.
1Only includes passengers that pay the CPV Excise Tax. Fiscal year
disbursements are based on passenger numbers during the prior
calendar year.
AGENDA ITEM #2.C.
Discuss Use of Kodiak Island Borough and City of Kodiak Cruise Ship Tax ...
Page 23 of 25
February 2020 City of Kodiak
LEGISLATIVE GRANTS
In addition to receiving shared CPV tax revenue, the
City of Kodiak has received nearly $3 million since
FY2009 in legislative appropriations from the
Commercial Vessel Passenger Tax Account to provide
cruise passengers with safe walking access from the
dock to downtown. The pedestrian pathway was scaled
back from original plans due to unforeseen
construction complications. The most critical and
expensive portion of the planned project was
completed in October 2013. The remainder of the
pathway, reception, and restroom project requires
additional funding.
CPV-Related Legislative Grants
Fiscal Year Project Amount
2009 Cruise Ship/Pier II Master
Plan $250,000
2010
Pedestrian Improvements
Between Cruise Ship Dock
(Pier II) and Downtown
$700,000
2012 Pedestrian Pathway $384,000
2012 Pier and Downtown
Pedestrian Improvements $1,600,000
Total $2,934,000
Sources: Alaska Division of Community and Regional Affairs and Alaska
State Legislature, Division of Legislative Audit, Audit 04-30083-16.
CPV REVENUE EXPENDITURES
Wide variations in the number of ship calls dramatically
impact the amount of CPV revenue that the City of
Kodiak receives. In general, the revenues
are used for ship and passenger services. The City of
Kodiak has pursued funds through the CPV tax
appropriation process for infrastructure improvement
projects relating to cruise ships.
CPV Revenue Expenditures
FY2007 to FY2016
Category Description Expenditures
Other CPV
Services
Direct services for ships
and passengers including
docking and cargo; safety,
security, and traffic
management; and dockside
utilities
$176,005
Total $176,005
Sources: City of Kodiak and Alaska State Legislature, Division of
Legislative Audit, Audit 04-30083-16.
RELATED INFORMATION
Dowl HKM. 2012. Development Concept Plan for
Shelikof Street/Jack Hinkel Way to Marine Way.
PND Engineers, Inc. 2010. City of Kodiak
Waterfront Master Plan.
CONTACT
Kelly Mayes
Finance Director
City of Kodiak
907-486-8659
kmayes@city.kodiak.ak.us
AGENDA ITEM #2.C.
Discuss Use of Kodiak Island Borough and City of Kodiak Cruise Ship Tax ...
Page 24 of 25
From: Dora Cross <dcross@kodiakak.us>
Sent: Monday, December 2, 2019 3:08 PM
To: Javier, Nova <njavier@city.kodiak.ak.us>
Cc: Michael Powers <mpowers@kodiakak.us>
Subject: RE: Cruise Ship Tax
EXTERNAL EMAIL: ******* If sender is unknown or email is unexpected, do not click on
attachments/links.*******.
Kodiak Island Borough
Commercial Passenger Vessel Tax Revenue
FY2015-FY2019
FY2015 $13,925
FY2016 $30,255
FY2017 $30,888
FY2018 $37,625
FY2019 $42,753
Dora Cross
Finance Director
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
907.486.9320
PUBLIC RECORDS DISCLOSURE: This email and responses to this email are subject to
provisions of the Alaska Statutes and may be made available to the public upon request.
From: Michael Powers <mpowers@kodiakak.us>
Sent: Monday, December 2, 2019 2:46 PM
To: Dora Cross <dcross@kodiakak.us>
Subject: Cruise Ship Tax
Dora
Can you send Nova the 5 year history of Cruise Ship Tax Revenue the Borough has received please?
Thanks
Michael Powers
Borough Manager
Kodiak Island Borough
AGENDA ITEM #2.C.
Discuss Use of Kodiak Island Borough and City of Kodiak Cruise Ship Tax ...
Page 25 of 25
Appendix to Kodiak Island Borough Comments
December 19, 2019
Kodiak Island Bo.roug.
oHce ofthe Borough Mayor
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9310 Fax (907) 486-9391
Chairman Reed Morisky
Alaska Board of Fisheries Members Submitted via Online Comments
Boards Support Section
P.O. Box 115526
Juneau, AK 99811-5526
Re: Opposition to Proposals 58-66 and 37
Dear Chairman Morisky:
The Kodiak Island Borough (Borough) opposes Proposals 58-66 and 37, which will be considered
at the upcoming January, 2020 Alaska Board of Fisheries (Board) meeting in Kodiak. The
Borough encompasses the Kodiak Management Area as defined by the Alaska Department of Fish
and Game, and includes the Kodiak Archipelago and the Alaska Peninsula from Cape Douglas
west to Cape Igvak. Commercial fishing in State and Federal waters around Kodiak is a major
economic driver for the Borough, and fisheries tax revenues comprise a significant portion of the
Borough's revenues on an annual basis.
Proposals 58-66 and 37 would have substantial negative effects on Kodiak's economy and salmon
fisheries, and this set of proposals simply reiterates the same arguments the Board has already
addressed during each board cycle for the past 30 years. Namely, Chignik wants to change history
and take away the Cape Igvak fishery and Cook Inlet wants to exert control over common property
fish hundreds of miles away from Cook Inlet. Kodiak Island Borough strongly recommends that
the Board maintain status quo in regard to both the Cape Igvak and Cook Inlet issues.
Cape Igvak Fishery. It is critical for the Board to consider the long history and context of Kodiak
salmon fishing in the Cape Igvak area, and to maintain consistency with past management
decisions and strategies. The Alaska Board of Fisheries recognizes this importance of historical
use by listing "the history of each personal use, sport and commercial fishery" as the first of its
Allocation Criteria.
Appendix to Kodiak Island Borough Comments
Kodiak fishermen have been fishing throughout the Alaska Peninsula, including Chignik and area
M, since even before the Limited Entry management system was implemented in the early 1970s.
After limited entry Kodiak fishermen continued to
fish on the Alaska Peninsula from Cape Douglas to
Cape Igvak.`
When Chignik fishermen became concerned that
Kodiak's continued activity at Cape Igvak was
impacting their fishery Kodiak and Chignik
stakeholders met in Juneau at the 1977 Alaska
Board of Fisheries meeting and hammered out the cape Vb '
current Cape Igvak Management Plan. The planAr
r:.
balanced Kodiak's historical Cape Igvak fishery 4
with Chignik's need to have economic and
conservation protections. Consequently, the plan
prohibits fishing at Cape Igvak until the Chignik fleet catches a minimum of 300,000 sockeye -
about $2.5 million dollars in value. After the Cape Igvak fishery is opened to Kodiak fishermen,
Kodiak is limited to 15% of the total Chignik run, which approximates prior catch percentages.
The Cape Igvak plan is balanced and fair and has endured with only one minor adjustment for 42
years because it balances protections for Chignik's fishery on one side with recognition of
Kodiak's historical participation on the other. The Kodiak Island Borough does not see any "new
information," new "best available science," any new and expanding fishery or any new
conservation concerns that would justify changing the Cape Igvak fishery. The six Cape Igvak
proposals (58-62 and 65) represent an attempted "fish grab" without justification, and seem to
evidence a misplaced hope that the Board will ignore the history of the Cape lgvak fishery and the
balance of the equities established by the Cape Igvak management plan in 1977.
Cook Inlet. Kodiak salmon fishermen have recognized the presence of what appear to be "non
local" stocks in the Kodiak area for over 100 years, although it has always been impossible to
predict when, where or if non -local fish will show up in any given season. In 1989, during an
unusually calm summer Kodiak salmon fishermen found Cook Inlet bound sockeye out in the
middle of the northern Shelikof Straits and concentrated fishing effort in that area.
In 1990 Alaska Board of Fisheries clarified that (1) the Kodiak fleet, unlike the Cook Inlet drift
fishery, was limited to fishing inside the 3 nautical miles "state waters" line, and (2) that the
activity in the North Shelikof constituted a "new and expanding" fishery. The Board then crafted
the North Shelikof Management Plan which balanced continuation of the historical Kodiak fishery
of local Kodiak stocks with a conservation zone to protect Cook Inlet bound sockeye that might
be in the area. The North Shelikof Management Plan has endured for the past 29 years, with a
single minor adjustment for expanded local stocks opportunities in the S.W. Afognak section.
The Borough is aware of the genetic sockeye identification study undertaken in the Kodiak
Management Area from 2014-16. The study merely confirmed what was already known about the
presence of Cook Inlet sockeye in the Kodiak area, and demonstrated amounts vary greatly from
Appendix to Kodiak Island Borough Comments
year to year. In 2014 only a few fish are available; in 2015 larger concentrations appear in some
areas but not in others and in 2016 there are "lighting strikes" at some places but not in the same
places that fish appeared in 2015. Finally, across all three years the amount of Cook Inlet Sockeye
captured in the Kodiak Management Area was within the amounts suggested by the Alaska
Department of Fish and Game during the early 1990s. The 2014-16 genetic study is a new study
but it does not provide new information relative to the presence of Cook Inlet sockeye in the
Kodiak Management area. In short, there is no basis for additional restrictions on Kodiak's salmon
management for local stocks because the presence of Cook Inlet sockeye in the Kodiak
Management Area has already been accounted for in current management.
Allocation decisions are understandably difficult for the Alaska Board of Fisheries. However, in
this case the Cape Igvak and Cook Inlet fisheries each have a long standing allocation plan that
was reviewed by multiple Alaska Boards of Fisheries and there is no indication of new fishing
patterns or significant new information. There is no need or imperative to change Kodiak's salmon
management plans and the Board should maintain the current plans already in place.
Kodiak Island Borough encourages the Board to reject proposals 58-66 and 37.
Very truly yours,
Bill Roberts, Borough Mayor
Appendix to Kodiak Island Borough Comments
9- Cap Igvak marked with red dot on Kodiak Management Area Map
CHIGNIK AND AREA M
PAC= OCEAN
0
V,
Hppenaix to Koolau Islana borougn comments
ALASKA COMMERCIAL FISHERIES
Salmon Management Activities
A listing of the major Alaska salmon fisheries
NORTON & KOTZEBUE SOUNDS
CI lint SALMON
Principal River Systems:
Kobuk, Nowak, Kwiniuk, Kotzebue
and Unalakiert Rivers Sound
YUKON & KUSKOKWIM RIVERS Horton • r
Sound
CitttM a: CHINOOKsAtatoN
Gear: Gillnet
BRISTOL BAY
SOCKS -r, Cat to, CIMML
Ci ttNOOK SAWON
Principal River Systems:
Kvichak, Alagank, Naknek, Egegik,
Upshik, Wood, Igushik, Nushab-ak,
Mulchatna, and Togiak Riven
Gear: Gillnel
ALASKA PENINSULA
SOCKEYE h PINK SALMON
Principal River Systems:
Mestik, link, Sandy, Bear, Nelson
Gear: Purse Seine, Gillnet
WOW AJ80A a"n"ent nr Fish and Game
Yukon T
River
Kuskokwim
River
Bristol Bay
COOK INLET
SOCKEYE, CIIINOOK,
CInnI, & Coup SAt1iON
Principal River Systems:
Susitna, Kenai, Kasilof
Gear. Gillnet
SOUTHEAST & YAKUTAT
Plrn:. Chum, Cnrta, Socm—'
do CI ItNOOK SAtdION
Principal River Systems:
Hundreds of small streams,
Situk, Alsek, Taku, Stikine,
and Unuk Riven
.t
Gear: Purse Seine, Troll, Gillnet
Yakutat
AO
4
tCopper River
rll'�FPRINCE WILLIAM SOUND
s PM CIWM, SOCKEVE h
Jt / Coco sAERiver
Principall River 5ystrms:
I lundreds of small streams
CHIGNIK f KODIAK Gear: Purse Seine, Gillnet
SOCKEtTkPINXSALMON COPPER RIVER
Principal River Systems:
Chigndc, Buskin, Pasagshak, Kariuk, SOCKEYE A CHINOOK SALMON
and Ayakulik Rivers Gear: Gillnet
Gear: Purse Seine, Gillnet