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FY2022-20 Identifying Federal Program Priorities And A Capital Improvement Program For Federal Fiscal Year 2022 & 20231 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: Borough Manager's Office thru the Mayor Drafted by: Special Projects Support Introduced on: 02/17/2022 Adopted on: 02/17/2022 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2022-20 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IDENTIFYING FEDERAL PROGRAM PRIORITIES AND A CAPITAL IMPROVEMENT PROGRAM FOR FEDERAL FISCAL YEAR 2022 & 2023 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. 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. FY 2023 Community Project/Congressionally Directed Spending Requests: The Borough submits the following FY 2023 community project/Congressionally directed spending requests, consistent with guidance issued by the House and Senate Appropriations Committees. These requests do not include all of our capital projects but have been selected where there is consistency with relevant appropriations accounts/programs that allow for directed project funding under the Committees' rules. • M/V Tustumena Replacement: Ferry service is critical to our island communities. The State has placed replacement of the aged Tustumena on the STIP and we await development of a design by DOT/PF. We were pleased to learn that the Infrastructure Investment & Jobs Act included $342 million to the Federal Dept. of Transportation for its ferry program. Should additional Federal funds be needed for the new ferry and are requested by the State, we urge the Delegation to support the request. We also urge the Delegation to closely monitor the Dept. of Transportation's implementation of the new $200 million annual ferry operating subsidy program to see that AMHS receives its fair share and appropriately dedicates the funding to improving service to Kodiak. • Safe Pathways to North Star Elementary School: North Star Elementary School is located on a hill in an area and that is accessed through largely narrow dirt roads without sidewalks. Children walking to school as well as other pedestrians are at safety risk from vehicular traffic. The Kodiak Safe Routes To School Plan, completed in 2013, identified the need and importance of creating pedestrian pathways or trails Kodiak Island Borough, Alaska Resolution No. FY2022-20 Page 1 of 6 46 to link residential neighborhoods to the school. This project would provide such 47 pathways along Anton Drive and Lily Way to the school. We are requesting $1.5 48 million for the project. 49 50 City of Port Lions Water & Sewer Distribution Project: The current water and 51 distribution system in Port Lions is over 25 years old. In addition to showing signs of 52 its age, the system was not properly installed in the first place. It has been in need 53 continual maintenance and repair since its beginning, necessitating frequent 54 emergency repairs that often exceed the City's sewer and water operating budget. 55 Replacement of the failing system would cost $2.5 million, the amount the Borough 56 requests in funding. 57 58 City of Larsen Bay Water Distribution Line: The City's water distribution system is 59 aged and has many leaks, resulting in an estimated loss of 40,000 gallons of water a 60 day. The water plant operates 24/7 as result and in the summer has difficulty keeping 61 up with the community's water usage despite all of the identifiable leaks having been 62 repaired. Rather than continuing to wastewater and resources operating and repairing 63 the system, the best solution is the replacement of the water distribution line at a cost 64 of $1.7 million, the amount the Borough requests in funds for FY 2023. 65 66 Anton Larsen Bay Road Extension Project: The Kodiak Island Borough has 67 submitted this project as a Federal request to the Delegation the last few years and 68 resubmits it for FY 2023. An extension of the Anton Larsen Bay Road to ice free 69 waters will provide year around access to those communities located in the Kupreanof 70 Strait as well as those who use the island's west side for commercial and recreational 71 purposes. Extending the road to ice free waters makes traveling safer, providing 72 access to critical services located in the City of Kodiak, including hospitals and 73 businesses. Both the Ouzinkie Native Corporation through its subsidiary, the Spruce 74 Island Development Corporation, and the Sun'aq Tribe of Kodiak have agreed to 75 partner on the project. Its total project cost is $10.45 million, of which we are 76 requesting $10 million. 77 78 2. COVID-19 Relief Funding — State, Local & Tribal Government (SALT) Assistance: 79 The various COVID relief bills enacted in 2020 and 2021 have been very helpful to the 80 Borough in order to maintain operations during the pandemic through direct assistance 81 provided under the CARES Act and the American Rescue Plan Act. We support the 82 additional funding flexibility in the use of these monies as well as extension of spending 83 deadlines as called for by NACO and other organizations representing local governments. 84 The direct relief provided to our schools helped with virtual learning and other COVID 85 protection measures for our students. We worked with the City to set up the Kodiak 86 Economic Development Corporation that used COVID relief funds to support our small 87 businesses and non -profits who had difficulty accessing Payroll Protection Program 88 funding. Should the pandemic's impact extend further into 2022, we urge the Delegation 89 to support either additional relief funding or the reprogramming of previous funds that have Kodiak Island Borough, Alaska Resolution No. FY2022-20 Page 2 of 6 F1 'I I 90 gone unused that would support local government efforts to combat COVID's unfortunate 91 health and economic effects on our communities. 92 93 3. Broadband Service To Rural Areas: Establishing or improving broadband service to the 94 Borough's rural island communities continues to be a high Federal priority for us. We 95 have been following with great interest GCI's fiber optic cable project to bring high speed 96 internet service to Kodiak and through much of the Aleutian Island chain. "Middle" and 97 "last" mile investments are of particular interest to our villages so they can access higher 98 speed broadband. We welcome the funding for NTIA's Tribal Broadband Program as well 99 as USDA's Telecommunications Infrastructure Loan Program & Community Connect 100 Grant Program, with the recently enacted Infrastructure Investment and Jobs Act doubling 101 funding for the NTIA Program in FY 2022 as well as creating the new State Broadband 102 Grants Program. We look forward to seeing how this funding is deployed through Alaska's 103 rural communities. Should the Borough in cooperation with a local internet service 104 provider pursue funding at a later date with USDA's or NTIA's programs, we would request 105 Delegation support for our application. 106 107 4. Groundfish Surveys: The Kodiak Island Borough continues to be concerned about the 108 possibility of reduced groundfish trawl surveys in the Gulf of Alaska, a concern further 109 exacerbated by the effects of the pandemic on fisheries survey work over the last two 110 years. Groundfish are critical to Kodiak fisheries, accounting for 60 percent of all our 111 landings. Survey data on groundfish species abundance is used to set fishing quotas. 112 Inadequate data creates the possibility of reduced quotas as fisheries managers seek to 113 control fishing effort on a precautionary basis. We appreciate the Alaska Congressional 114 Delegation's support to maintain this coverage on recent years and for favorably 115 considering the Borough's prior year requests. The FY 2021 Omnibus Appropriations Bill 116 included a directive to NMFS to contract for no less than six Alaska bottom trawl groundfish 117 surveys, with one survey to capture fish movements out of historical survey areas to 118 account for climate change -related migration. The pending Senate FY 2022 Commerce - 119 Justice -Science Appropriations Bill carries forward the same requirements for this year. 120 The Borough requests that this directive and number of surveys be included in the final 121 FY 2022 Appropriations Bill and carried forward in the FY 2023 appropriations process. 122 123 5. Fisheries Disaster Relief: The Borough thanks the Delegation for its support for fisheries 124 disaster relief through two rounds of funding in COVID relief legislation as well as for the 125 2018 Pacific Cod disaster. We remain concerned over the time and the many steps it 126 takes for relief to be distributed. The Senate has passed fisheries disaster relief reform 127 legislation -- S. 2923, the Fishery Resource Disasters Improvement Act -- that would bring 128 some greater transparency and deadlines to the steps in the disaster relief determination, 129 funding, expenditure plan development and relief distribution process. The bill also 130 includes provisions that qualify local government loss of raw fish tax revenues as eligible 131 for reimbursement from future Federal fisheries disaster relief funding. We urge its 132 enactment as well as support for any future Federal relief funding should Kodiak's 133 fishermen, processors and other businesses be negatively impacted by a fisheries 134 disaster. Kodiak Island Borough, Alaska Resolution No. FY2022-20 Page 3of6 135 136 6. North Pacific Observer Program: Observers are an important part of managing the 137 halibut and groundfish fisheries in the Gulf of Alaska. Kodiak benefits from a well-run and 138 adequately funded observer program through expanded economic opportunities for its 139 groundfish and halibut fleet and processing sector. Gulf of Alaska fishery participants pay 140 into the North Pacific Observer Fund to cover the costs of "partial coverage" for Gulf fishing 141 sectors but there has been a shortfall in funding to cover observer costs in recent years. 142 The Borough in past years has requested a $2 million supplement to the program along 143 with language pressing NMFS to make modifications to the program to reduce its burden 144 on smaller vessel operators in the fixed gear fleet. For FY 2021, Congress provided an 145 additional $1 million to supplement program funding. The pending Senate FY 2022 146 Commerce -Justice -Science Appropriations Bill includes another supplement of $1 million 147 above the FY 2021 level with direction that the funds "offset observer costs normally paid 148 for by harvesters in fisheries that are under -taking a transition to EM/ER" (sic electronic 149 monitoring and reporting). The Borough supports rolling forward this legislative language 150 as well as $2 million in supplemental funding for the program in the FY 2023 appropriations 151 bill. 152 153 7. U.S. Coast Guard Base -- Kodiak: Continued infrastructure development at the USCG 154 Base in Kodiak along with Coast Guard vessel homeporting expansion plans remain a 155 high priority for the Kodiak Island Borough. We were very pleased to learn that as part of 156 the Bipartisan Infrastructure Law, Congress provided the Coast Guard with an additional 157 $429 million for infrastructure improvements. Of that amount, $170 million is designated 158 for our base, with $40 million to go to Phase IV base housing and $130 million for Phase 159 1 recapitalization of the fuel services pier to accommodate the Coast Guard's new vessels. 160 These investments combined with other previously funded infrastructure, housing and 161 environmental remediation projects will result in substantial upgrades to the base's 162 capabilities and readiness. In addition to the Offshore Patrol Cutter and two Fast 163 Response Cutters, we are thankful for the Delegation's advocacy with the Coast Guard 164 for Kodiak to be a possible homeport for one of the six new Polar Security Cutters (PSCs). 165 In the interim, should the Coast Guard execute leases for foreign ice breakers while the 166 PSCs are under construction, we would encourage Kodiak be considered as a homeport, 167 even if temporary. Furthermore, we are supportive of S. 3272 — the Arctic Focus Act — 168 introduced by Senator Sullivan that includes language requiring the homeporting on one 169 PSC in Alaska by 2030. Overall, we appreciate the Delegation's support for the Base as 170 a homeport for the new vessel classes and urge continued advocacy as future Coast 171 Guard decisions are made. 172 173 8. Payment -In -Lieu -of -Taxes (PILT): PILT is a very important revenue source to the 174 Borough, given that there are over 2.8 million acres removed by the Federal Government 175 from local taxation within our boundaries. This is land that would otherwise be available 176 to the private sector to develop, creating jobs for the residents of Kodiak and the rural 177 Kodiak Island communities. PILT funds supplement Borough resources to provide basic 178 social services, including medical facilities, emergency fire and rescue services, roads, 179 and schools to our island communities. We understand that the pending FY 2022 Senate Kodiak Island Borough, Alaska Resolution No. FY2022-20 Page 4 of 6 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 and House Interior Appropriations Bills include full funding for PILT. We thank the Delegation for its long-standing support for PILT and urge continued support for full funding in the FY 2023 appropriations process. 9. National Wildlife Refuge Fund ("Refuge Revenue Sharing"): 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. Both the Trump and Obama Administrations sought to zero out its funding. The Biden Administration in its FY 2022 budget request also sought to terminate appropriations for the program. Fortunately, the pending FY 2022 Senate and House Interior Appropriations Bills include level funding for the program. The Kodiak Island Borough opposes the termination of appropriations for this important program. The Borough thanks the Delegation for its on-going support, and seeks continued level funding in FY 2023. 10. Essential Air Service (EAS): The Borough's communities are highly reliant on the EAS program, its support to air carriers and its requirements for island community service. We are appreciative of the additional relief funding Congress provided to EAS during the pandemic to make up for reduced passenger air travel on the island. Without this relief funding along with regular annual funding for the program, the Borough would lose or have vastly reduced air service to our island communities. The pending FY 2022 Seante and House Transportation, and Housing and Urban Development, and Related Agencies Appropriations Bills fully fund EAS. We support continued funding for EAS in FY 2023 along with any supplemental funding should it be needed due to further pandemic impacts on EAS carriers. 11. U.S. Navy Arctic Presence: The Borough appreciates the Delegation's sustained effort at urging and directing the Department of Defense (including the Navy) to further examine the Arctic's strategic interest to the U.S. This includes follow up by the Navy after its release last year of its report — A Blue Arctic. We understand that changes in U.S. strategic posture and investment in the Arctic is a long-term issue and will require further analysis and study before decisions can be made about a more sustained or permanent Navy presence in the region. A positive step this past year was DoD's selection of a Senior Advisor for Arctic Security Affairs as well as the establishment of the Ted Stevens Center for Arctic Security Studies in Alaska. We also saw the issuance of the 2021 National Intelligence Estimate, with its finding that military activities in the Arctic by other countries, including non -Arctic nations such as China, are likely to increase. As has been included in our past Resolutions, 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. 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 seeks to continue to keep Kodiak "front and center" with the Delegation and Department of Defense as Arctic plans develop. Kodiak Island Borough, Alaska Resolution No. FY2022-20 Page 5 of 6 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 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 other Federal program priorities adopted by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SEVENTEENTH DAY OF FEBRUARY 2022. KODIAK ISLAND BOROUGH �Vlpr� WJ6 llil�Lt/Y Aimee Williams, Deputy Presiding Officer VOTES: Ayes: Delgado, Smiley, Smith, Turner, and Arndt Noes: Kodiak Island Borough, Alaska ATTEST: Lina Cruz, Borough Deputy Clerk Resolution No. FY2022-20 Page 6 of 6 D