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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