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FY2021-28 A Resolution Of The Assembly Of The Kodiak Island Borough Identifying Federal Program Priorities And A Capital Improvement Program For Federal Fiscal Year 2020 & 2021.1 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 Introduced by: Borough Manager's Office Thru The Mayor Drafted by: Borough Manager Introduced on: 01/21/2021 Adopted on: 01/21/2021 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2021-28 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING FEDERAL PROGRAM PRIORITIES AND A CAPITAL IMPROVEMENT PROGRAM FOR FEDERAL FISCAL YEAR 2021 & 2022. 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. COVID-19 Relief Funding — State, Local & Tribal Government (SALT) Assistance: The $908 billion in additional COVID-19 relief recently enacted included favorable funding for small businesses, vaccine distribution, individuals, the unemployed the fishing industry and other affected groups. Unfortunately, it did not provide additional SALT relief included in earlier drafts of the legislation such as the bi-partisan Senate -House working group's proposed $160 billion in funding. Previously, the Borough was able to make productive use of the SALT relief contained in the CARES Act, partnering with the City to establish a program for assistance to Kodiak's small businesses and non -profits, many of whom failed to qualify for Paycheck Protection Program funding or whose PPP awards fell short of their financial needs. The new Administration is expected to submit legislation that will include a substantial amount of SALT relief. Additional funds would support continuation of the Borough/City small business/non-profit relief program; fill shortfalls in the Borough's budget due to declines in revenue as a result of the economic impact of the pandemic in 2020 and anticipated in 2021. This includes losses as a result in the decline in tourism this past year. Additional SALT relief would assist the Borough in education costs incurred by the pandemic that may not be covered by the education -specific funding in the $908 billion package, including school bonding expenses and other school operational and program expenses. We urge the Delegation to support SALT relief as part of the next COVID-19 legislative package and to provide maximum flexibility on how those funds might be used. Kodiak Island Borough, Alaska Resolution No. FY2021-28 Page 1 44 45 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 2. Groundfish Surveys: The Kodiak Island Borough continues to remain concerned about the possibility of reduced groundfish trawl surveys in the Gulf of Alaska. We appreciate the Alaska Congressional Delegation's support to maintain this coverage these past two years and for favorably considering the Borough's prior year requests. 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 Commerce, Justice, Science Appropriations Title, which funds the National Marine Fisheries Service (NMFS), of the FY 2021 Omnibus Appropriations Bill includes a directive to NMFS to contract for no less than six Alaska bottom trawl groundfish surveys, with one survey to capture fish movements out of historical survey areas to account for climate change -related migration. The Borough request that this directive and number of surveys be carried forward in the FY 2022 appropriations bill for NMFS. 3. Gulf of Alaska Pacific Cod Fisheries Disaster: After a long and delayed process, funds for the Gulf Pacific cod in 2018 are nearing readiness for distribution to eligible fishermen and processors. Applications will be provided and processed by the Pacific States Marine Fisheries Commission once the State's final expenditure plan has been approved. Pacific Cod remains a very important fishery for Kodiak fishermen and processors. We appreciate the Delegation's support for the relief during various stages of the decision- making and funding process and ask for continued monitoring to ensure its full and timely distribution. 4. North Pacific Observer Program: Observers are an important part of managing the halibut and groundfish fisheries in the Gulf of Alaska. Kodiak 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 but there has been a shortfall in funding to cover observer costs in recent years. Last year Congress provided $1 million to supplement the partial coverage program. For FY 2021, the Omnibus Appropriations Bill includes report language with additional funding to the program to be used to offset observer costs normally paid for by harvesters in fisheries that are undertaking a transition to electronic monitoring and reporting. The report also encourages NMFS to identify and implement efficiencies that would mitigate the cost burden shouldered by small vessel operators in the fixed -gear fleet. The Borough supports incorporating these provisions as well as $2 million in supplemental funding, consistent with the amount we requested last year, for the program in the FY 2022 appropriations bill. 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. We welcome the investments the Coast Guard has sought, and Congress funded with strong Delegation support to pursue environmental remediation, Kodiak Island Borough, Alaska Resolution No. FY2021-28 Page 2 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 housing and shoreside infrastructure projects to ready the Base for the new class of vessels being built. This includes infrastructure funding for the homeporting of two new Fast Response Cutters and an Offshore Patrol Cutter at Kodiak. With the enactment of the FY 2021 Omnibus Appropriations Bill, the construction of the first two Polar Security Cutters (PSC) has been funded, with the first PSC expected to be completed in 2024. The FY 2021 National Defense Authorization Act (NDAA) authorizes a total of six PSCs, with current Coast Guard plans to purchase three heavy class breakers and three medium class breakers. After the Russians entered the U.S. EEZ this summer during one of their war exercises and threatened U.S. fishing vessels, we have heard that the Coast Guard is considering leasing two ice breakers for North Pacific deployment until the PSCs come online so we can have a stronger presence to protect against future Russian incursions. We encourage the Delegation to support at least temporarily homeporting those vessels in Kodiak if the Coast Guard moves forward with the leases. Overall, we appreciate the Delegation's support for the Base as a future homeport for the new vessel classes and urge continued advocacy as future Coast Guard decisions are made. 6. Payment -In -Lieu -of -Taxes (PILT): The Borough submitted FY 2021 Federal requests with the Alaska Congressional Delegation last this year for continued funding of PILT as we have done in years past and seek to do so again for FY 2022. We appreciate that the program was fully funded in the FY 2021 Omnibus Appropriations Bill. This is a very important revenue source to the Borough, given that there are over 2.8 million acres removed by the Federal Government from taxation within our boundaries. 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. PILT funds supplement Borough resources to provide basic social services, including medical facilities, emergency fire and rescue services, roads, and schools to our island communities. 7. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): The Kodiak Island Borough opposes the termination of appropriations for this program. The last two Administrations have sought to zero out its funding. The Congress thankfully has rejected these proposed cuts each year, providing level funding for the program in FY 2021. While not as significant as PILT, 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. The Borough thanks the Delegation for on-going support of the program and seeks continued funding for it in FY 2022. 8. Essential Air Service (EAS): The most recent COVID-19 Relief Bill and the CARES Act provided emergency supplemental funding to the EAS Program so that EAS carriers could receive additional support to make up for the loss of passengers this past year due to the pandemic. Without these supplemental payments along with regular annual funding for the program, the Borough would lose or have vastly reduced air service to our island communities. The FY 2021 Omnibus Appropriations Bill fully funds EAS. We support continued funding for EAS in FY 2022 along with any supplemental funding should it be needed due to further pandemic impacts on EAS carriers in 2021. Kodiak Island Borough, Alaska Resolution No. FY2021-28 Page 3 133 9. U.S. Navy Arctic Presence: The Russian war games mentioned earlier, Russian plans 134 for a large ice breaker fleet, as well as China's, as part of its Belt and Road Initiative, the 135 growing importance of the Arctic from a national security perspective, the prospects for an 136 ice-free Northwest Passage as a future maritime trade route, the movement north of fish 137 species important to commercial fishing — all are matters that the Borough has been 138 monitoring. The Navy's just-released report — A Blue Arctic — calls for an increased Navy 139 presence in the region. The document discusses the importance of an increased 140 "regionally postured" focus. While it does not provide specific details, it lays the 141 groundwork for a follow-on report mandated by Congress that is supposed to examine 142 Navy base options in the region and State. That report will be released this year. As has 143 been included in our past Resolutions, selection of Kodiak as a potential Navy base or 144 staging area as the U.S. expands its security presence in the Arctic is a long-term goal for 145 the Borough. The Borough seeks to continue to keep Kodiak "on the radar screen' with 146 the Delegation and Department of Defense as Arctic plans develop. There is adequate 147 land at our Coast Guard Base as well as a deep water port at Womens Bay that could 148 support the Navy's presence. 149 150 10. Anton Larsen Bay Road Extension Project: The Kodiak Island Borough has submitted 151 this project as a Federal request to the Delegation the last few years in hopes that 152 Congress will resume the practice of Congressionally directed spending, otherwise known 153 as earmarks. The House is considering reinstating earmarks this year, so the Borough is 154 submitting this project as a Federal request in case they are adopted in the FY 2022 155 appropriations cycle. An extension of the Anton Larsen Bay Road to ice free waters will 156 provide year around access to those communities located in the Kupreanof Strait as well 157 as those who use the island's west side for commercial and recreational purposes. 158 Extending the road to ice free waters makes traveling safer, providing access to critical 159 services located in the City of Kodiak, including hospitals and businesses. Both the 160 Ouzinkie Native Corporation through its subsidiary, the Spruce Island Development 161 Corporation, and the Sun'aq Tribe of Kodiak have agreed to partner on the project. Its 162 total project cost is $8 million. 163 164 11. Broadband Service to Rural Areas: The Borough reiterates the importance of improving 165 broadband service to our rural island communities. The poor internet service experienced 166 by many of our communities has a negative impact on the delivery of important public 167 services as well as commerce. We support full funding and implementation of the Federal 168 Communications Commission's (FCC) Alaska Plan to encourage significant investments 169 by Alaska telecom providers in rural broadband. These investments will help bring 170 improve Internet service speed and coverage to the more remote parts of the State by 171 2025. The Borough advocates for "middle" and "last" mile investments on the Island which 172 is necessary for our villages to receive internet service. We continue to urge the Alaska 173 Delegation to encourage telecom providers in our region to make those investments as 174 part of implementation of the FCC Alaska Plan. We also support funding for USDA's rural 175 broadband grant/loan programs (Telecommunications Infrastructure Loan Program & 176 Community Connect Grant Program) that could fund "last mile" broadband infrastructure Kodiak Island Borough, Alaska Resolution No. FY2021-28 Page 4 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 programs as the Alaska Plan moves forward. The recent COVID-19 Relief Bill includes $7 billion for broadband deployment, including funding set asides for rural areas and tribes. We are also aware that the new Administration is interested in pursuing further broadband funding as part of comprehensive public infrastructure investment legislation. Should the Borough, in cooperation with a local internet provider, pursue funding at a later date with USDA's programs or other Federal sources, 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 THIS TWENTY FIRST DAY OF FEBRUARY, 2021. KODIAK ISLAND BOROUGH 4i am Roberts, Mayor VOTES: Ayes: Arndt, Dvorak, Kavanaugh, Symmons, Turner, and Williams Noes: Absent: Smith Kodiak Island Borough, Alaska Borough Clerk Resolution No. FY2021-28 Page 5