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03/31/2005 Work Session
ASSEMBLY WORK SESSION March 31, 2005 - 7:30 p.m. Borough Conference Room AGENDA CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION E 1 1 . Parks and Recreation Committee Update - Pam Foreman 2. Chamber of Commerce Economic Development Update - Debra King � 3 . Planning and Zoning Commission - Gravel Task Force ot . , V 4. City Annexation of Watershed and Requested Private Property PACKET REVIEW MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS ON LEAVE Wells - March 27 -31 Ranney - April 18 -22 - AML Spring Conference - Juneau Selby - April 18 -22 - AML Conference of Mayors - Juneau Branson - May 1 -13 Bonney - May 10 -22 please print your name 1. A/7674 JekE5 2 nn &VAA iL 0 3 I 3. \' .lx(< (il l \ akt * 4. en-CONEF S.N /CK TVS- 6. �liud¢ 7. G—.L w Low &f y 8. Way itirielie,fi C HUex ?SO,✓ 10.e.A1(o��kwn..��P' 11. 71/2 sTe 12.f gamed f 13.j I-k J) i -TheA 4W ✓ 14. 16 JIULLMJ D vet( 60011( (,‘, _Dow tut., 1 g . COA7 torofki c70 Oaikeuld. 15. KODIAK ISLAND BOROUGH WORK SESSION M EETING Work Session Meeting of: 9 1 105 o . efirts)._4(4•,,c Z 2, An FYI for the Assembly re: City of Akiok Claude Denver of Homeland Security contacted me in mid -March asking about Akiok running out of fuel and what the Borough was doing about it. I contacted Bud Cassidy and he was unaware of any "emergency" situation, too. He contacted Arum Kone of KANA who came in to meet with us, along with Jim Nagan who is facilities /maintenance manager for KANA. KANA was aware that the City has become dysfunctional. The City doors have been locked for at least four months, the water operator is not certified, no employees are being paid. KANA administers the 638 Project Funding for the Tribe and is trying to assist the community to consolidate governments, but did not know how to go about it. We had discussions with Mike Black, Dan Bockhorst and Claude Denver. Dan Bockhorst suggested that the Borough could take over operation of the City and I reminded him we have only certain powers (education and platting/planning) as a 2 „ a Class Borough! Mike Black agreed to share the information DCEED staff has collected and will work with KANA in their exploratory and potential consolidation efforts. Arum is trying to determine the actual amount of debt the City has, which appears substantial (i.e. $250,000 in IRS liens, DNR, fuel bills, EPA/DEC fines, etc.). There has been no billing for electrical for some time. Meantime, Bud contacted Bob Tucker at the School District, and he was aware that the City had a boil water notice up all this school year. The District has provided a distiller big enough to accommodate the school with clean drinking water, as well as teacher housing. He was not aware that the City was about to run out of fuel. He stated that, while the School District has its fuel stored in a City tank, they have never had the City dip into their fuel supply without asking permission. It appears from information gathered, that the City has used the excuse of running out of fuel many times to garner loans and other assistance, but never paid it back. According to Arum at KANA, there are three governments in Akiok, with only 45 winter residents (including children)...certainly not enough residents to run three separate governments. The Borough needs to monitor the number of students at the school which is coming dangerously close to the State's "school closure" level of under 10 students. Nancy Galstad From: LIO Kodiak [Kodiak_LIOCOlegis.state.ak.us] Sent: Wednesday, March 23, 2005 9:53 AM Subject: SB 14 - Municipal Elections FOR IMMEDIATE RELEASE: March 22,2005 Governor Signs Into Law Municipal Elections Bill (Juneau) — Governor Frank H. Murkowski signed into law Senate Bill 14, which gives municipalities the option to either hold special elections for initiatives and referendums or wait until the next regular election. "This bill gives municipalities greater latitude in managing election issues in such a way as to increase voter involvement and decrease the costs to local governments," Murkowski said. "That just makes good sense." Senate Bill 14 removes the requirement of municipalities to hold a special election for initiatives and referendums if no regular election occurs within 75 days after certification. It also clarifies that an initiative or referendum special election cannot be held within 60 days of certification to allow ample time for procedural work. It gives municipalities the option of either holding a vote at the next regular election, holding the vote at an already scheduled special election that is more than 60 days away or ordering a special election. The measure was sponsored by Senate Majority Leader Gary Stevens (R- Kodiak) and was requested by Kenai Peninsula Borough Clerk Linda Murphy. Rep. Paul Seaton (R- Homer) also sponsored similar legislation in the House. The Alaska Municipal League, Fairbanks North Star Borough, Kenai Peninsula Borough, Mat -Su Borough, Ketchikan Gateway Borough, the City of Juneau and several other communities have expressed support for the bill. It is intended to help local governments avoid costly special initiative and referendum elections because these types of elections are expensive and tend to have low voter turnout for a copy of the legislation - http: / /www.legis. state .ak.us /PDF /24 /Bills /SB0014Z.PDF # ## Kodiak LIO (907) 486 -8116 (907) 486 -5264 fax kodiak Ilona legis.state.ak.us 3/23/2005 KODIAK ISLAND BOROUGH CLERK'S OFFICE COPIED TO: ASSEMBLY MAYOR MANA(E% OTHER DEC IME MAR 3 1 2005 J BOROUGH CLERK'S OFFICE White Sands Beach Options 3/3 2,00S" GJ ; After careful review, the KIB Parks and Recreation Committee advises against the inclusion of the White Sand Beach Recreation Area (aka: End of the Road Park) in the proposed City annexation of the watershed lands. The Committee met with Borough staff Bud Cassidy and Duane Dvorak as well as Donn Tracy of ADFG Sport Fish Division at our regular meeting March 22, 2005 to have an initial discussion of the issues surrounding White Sands Beach. Also present at this meeting, in his capacity as an ex- officio member of the Parks and Recreation Committee, was Wayne Biessel of the Kodiak State Parks. A second meeting was held on Tuesday March 29, 2005 with City Manager Linda Freed and Donn Tracy of ADFG Sport Fish Division. While the staff and committee recognize that there are obvious problems surrounding the maintenance and management of the area, the committee believes that it is not in the best interest of the Kodiak Island Borough and its residents to ask the City to annex the White Sands Beach area. The committee feels there are other avenues to explore for maintenance and management of the area and would encourage the Assembly to direct staff and the Committee to further explore those opportunities. Specifically, we recommend that for the summer of 2005 and beginning of FY 2006 the Borough explore entering into a maintenance contract with an entity such as State Parks. There may be an opportunity for some funding partnerships with the Sport Fish Division through their access funds. This would get us through the first year of the anticipated King salmon run at Monashka Creek, allowing both the Borough and Fish and Game to more accurately assess the level of activity in the area with the salmon run. Once that has been established it is our understanding that Fish and Game often partners with other entities to manage areas in which Fish and Game has created or enhanced a sport fishery. We believe that for the summer of 2006 and beyond, there will be an opportunity, through creative partnerships, to have a full blown management plan White Sands Beach. The Parks and Recreation Committee would like to stay actively involved in future discussions involving White Sands Beach. FY 2006 Budget Worksession Calendar April 14, 2005 Worksession General Fund KIBSD Contribution Funding for debt service Mill Rate non - profits April 28, 2005 Worksession Enterprise Funds Solid Waste KFRC E -911 New State bill raising allowable charges May 19, 2005 Regular Facilities Fund Projected earnings Available earnings Fund debt service of General Fund or Hospital Hospital Debt Service Depreciaiton profit vs cash Debt Service Fund Not much to talk about except funding Capital Projects Cost of materials Time Frame Fee Resolution 3/311 egeti - Wis May 12, 2005 Worksession Special Revenue Funds Mill rate increase Monashka Bay requested a .25 mills property tax rate increase KIBSD funding resolution June 2, 2005 Regular Adopt Budget Pass KIBSD funding resolution Pass Fee Resolution Introduce Budget - Power Point When we present a budget we will have both the "Narative Budget" and line item budget. The " Narative Budget" will have goals, objectives, graphs, etc. DATE ITEM BY January 14 2005 Budget Preparation Message Manager January 14 Distribution of budget worksheets to aid departments and service districts in submitting their requests Finance Officer January 14 Distribution of forms to gather input from autonomous not -for- profit organizations Manager February 4 Final day for departmental budget requests to be returned to Manager (via Finance Officer) Department Heads February 18 Revenue forecast (all funds) Finance Officer February-March Work sessions to resolve or justify differences of department budgets Manager/ Finance Officer/ Dept. Heads February 18 Due date for public and not - for - profit agencies budget requests Manager March 31 Receipt of Service District budgets Service Districts April 28 Prior to April 30, submission of proposed budget and budget message for Assembly in a work session (per KIB Code Subsection 3.08.030) to include KIBSD budget Manager April -May Assembly department review Manager/ Dept. heads April 30 Receipt of KIBSD budget (if KIBSD wants their budget incorporated into KIB budget, then by April 1) School District May 19 Introduction of Budget Ordinance (Power Point presentation) Manager May 19 Publication on hearing Clerk June 2 Public hearing and adoption of budget (as required by KIB Code Section 3.8.50) by June 10 Assembly July 1 Budget execution All concerned BUDGET CALENDAR KODIAK ISLAND BOROUGH FISCAL YEAR 2006 The following activity is outlined as essential for the orderly formulation of the fiscal year 2006 Borough budget (July 1, 2005 through June 30, 2006). The Budget Process The budget process begins on the first Friday in January of each year with the budget preparation message by the Borough Manager. At this time, budget worksheets are distributed to the various departments to aid them in preparing their requests. The following week, forms are distributed to solicit input from the villages and from autonomous, not -for- profit organizations. Departmental budget requests must be returned to the Finance Department by the second week in February. Departments must include line item monetary requests and goals and objectives for the upcoming fiscal year. Budget requests by public and not- for- profit organizations must be returned to the Manager's Office no later than the third week in February. The Finance Officer prepares revenue forecasts for all funds by the third week in February. During February and March, work sessions are held between the Manager, Finance Officer, and department heads to resolve or justify the departmental budgets. Service district budgets must be received by March 31 of the year, per Section 4.20.030 of the Borough code. The school district budget must be received by April 30 of the year, per Section 3.08.030 B of the code. The Manager presents his annual budget message during the first week of April. The proposed budget and capital program must be presented to the Borough Assembly in a work session prior to April 30, per section 3.08.030 A of the code. During the months of April and May, the Assembly reviews the budget with the Manager and department heads. In May, the Manager introduces the budget ordinance. There must be a public hearing on the budget on or before June 10 of each year. The Borough Clerk posts the notices of this public hearing. The budget shall be adopted by a favorable vote of a majority of all members of the Assembly no later than June 10 through the adoption of an ordinance setting forth the appropriation levels and the millage rate. The Borough Mayor may veto the ordinance, but his veto may be overridden by two - thirds of all the votes to which the Assembly is entitled on the question. If the Assembly does not adopt the budget by June 10, the budget, as presented by the Manager, shall be deemed to have been finally adopted, per Section 3.08.060 of the code. Budget Amendments According to the Borough Code for Public Finance — Budget, upon adoption of the budget through Assembly passage of the budget ordinance the budget is in effect for the budget year (July 1 — June 30). Amendments to the budget can occur anytime during the fiscal year through the Borough Assembly or administrative action. Generally, the following actions are required at the level of the particular change. 1. All new appropriations are authorized by an appropriation ordinance that amends the annual budget ordinance. 2. A resolution of the Borough Assembly is required to move (appropriate) amounts between departments and projects. Basis of Accounting The term `basis of accounting" is used to describe the timing of recognition that is, when the effects of transactions or events should be recognized. The Kodiak Island Borough uses the same basis for budgeting as accounting. The Comprehensive Annual Report (CAFR) shows the status of the borough's finances on the basis of "generally accepted accounting principles" (GAAP). In all cases this conforms to the way the borough prepares its budget. The CAFR shows fund expenditures and revenues on both a GAAP basis and a budget basis for comparison purposes. The budget of general government type funds (for example, the General Fund, Special Revenue Funds, and Debt Service Fund) is prepared on a modified accrual basis. This means that obligations of the borough are budgeted as expenditures when they are incurred, but revenues are recognized only when they are measurable and available. An exception to this general rule is principal and interest on general long -term debt, which is recognized when due. Prepayment of insurance and similar services extending over more than one year is allocated to the years benefited. The Enterprise Funds (Municipal Solid Waste and Collection, Hospital, Kodiak Fisheries Research Center, and 911 Services) also budget obligations when incurred as expenditures. Revenues are recognized when they are obligated to the borough (for example user fees are recognized as revenues when services are provided). In all funds when goods and services are not received by the end of the year, the encumbrances lapse. Please Sign and Print Name Address PH# Vessel/Occupation ittan 3 - a.1i. T - c ‘..i - `t»ant ` Arb4 v ;1v FN c-,iaQ,r.;NI a OS 0 , jai - ' Uc-I -2 -- 3 3 5-79.1 13rzf 'rc ye t -tv.AP £_2 C,arzrt�c<< r_ ca &L2 Qc–„, 73 /1 WerOvW47 LP k & SA-Ft-ry (acHAr MCa. 0 c.ew24reec v, el* C.Vrv►rsk./ /at' / m rtri id L¢ • A 12 odt+d K i/i�1-2i'7D "oc.oyfl 3:9 11 e 1 7 ,ici TiAorshe :0, r_. k 5 1 '1 fONCk✓1 lc; vinkiorl -/ j' odC N p ., .sr St P- 4- t,0cs 6 -Z `WC -r s s 0� F/ PaI:dQ��vic-� „ 'e;,,,K n P.0 L 109 Ir f 2_ 66 vd . 1•13 Str -1a2 : >#� ,._ 'U rAcem [(2G3rt- -7 e,- i�? sue•- . TV' „ " "' At % /'7 - rs n r r •. _a. ../ cJ , a1ba a aY 4 -1 M --- V r j j bji ;( ; sk) hi 67, c % .c, tin. r r ay W e a SY\ c V r e &'oS ."--orvi-Ri eili_c_ ? k_ i6 Ai t OA i ) ex 1,- 1 17) 3 3 t 1 - - 0oS WE, THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA,_STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Program cz-SS Please Sign and Print Name Community Vessel/Occupation idw,+ Pes-fe,` ,` / �4 I 44)P r rr‘48 a4v will - Tarl r Cer7f. j, ) phia 1r2 _ 4 ..ta at 0 „,a EVI .ark F \ \- KOC1 r A,___' nd� Ci Ler-tan- I . 01 1 a I watt._ / ) C/ ) b Actici...- -)67d-Cett-14 4lti.,224-4:, Q . . a - / d - adA eel LCU- ( /7C vS koCt N{* /vt sy ile_c V Zlegl e arid ,,, -Kc-n -i -s i. S A a .44!4/ /‘1: /1 1 L )('ad - -�.� , -- c f u � " chiN - 56 \ 1—N co (.0 )Iot < ' t ill 0 WE THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program PI + : e Si. n and Print Name Communit VesseUOccu i ation (F et S, g.w.. g- fort J tit:`f �w A-et �, 55 °( � < �: g as4a k. Shcri �� .. Bk re � s(a t�� cry cti I a E v r e hill v ex i2(GL70n1Brl PW fort Seiic 5 . " •' `' f\o e ko0 -ASe -- r - Q.tde,vr - c:51‘ T P-o C9sS W �� rz_ _ /A - c jk. • C v ANQ essel t � c d ,---L_ A' I � I s aA 40411 D SL ;d' K J 1 v J kra - 41(_ K 19 - `nonl< 1 _ 9,4v C r Ci �.— t C •, r a 1 �+Yirrt 0-e. D OG T , hiva 4 ?, 23o y eleb&j r2odtakAictW / 1' / L D WE, THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program WE THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program Please Sign and Print Name &Iitic'.S 5 J ..LS _ t Community [qt ` yr' Vessel/Occupation \ I Z( `_ i t A-(A/ v `) FFF,---�'� v �1J)A� F4' i 1 / II o li . ,U 0. b,, &rn -nail -NA) r c ` ' LQ21td 6-la Ce _.... Ft5 14.E bra A e r`J C Voc9 C1er thhtt d KC'd ak 5 fit ,�ee\ ,S ti '/ N' D. c. J,Ltw� C \9_,L.--) �/ Nati c ti c Cs / t, Clries #°" C6o6 Yi k t / „ l .''.4- t Mad 1 U Msg. . - �r',y/,� Ti1 ,��} � ��� � f r Ac_cou ( -t6-tf 4 M I MARY &Rata ► M. ht's, `n. . III 1 .:4 _ _ _ K eb -14: RClA Q`+ �kTP (4 � ``\0CLC-k LC V�lc.,s: er 1109iC L Gain C -e.06 r L. 'CO Ttrt r et Fete -- l _;, .0 j J....-.t..,-..h. -_ at ■ I'd WE THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program WE THE UNDERSIGNED CONCERNED CITIZENS OT_ OASTAL ALASKA STAND UNITED AGAINST SB 113. This bill ants the abili to the State Board of Fishe and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program 1 Please Si l and Print Name Commumt Vessel/Occu 1 ation r Or nor i/ /Cc, ' Gvoc /Av Acq // C.V /(V/4' i(' 99G0 /( X f- /-si1ti,s &'4 Ir" ,ezt o , 96t 7lc/ ZId ' .o)c,Zl piano A74, Dona/ D owlet- MA- CDon/E-LL I ilk . f%✓ lrioldsi - , :.& CcJ-s r- �. 11) ∎ 3 4 �� Dr, , / / 1 / f,`, is WrVA, f i .-- 1V0/119Ct , / evtr t Fr , - Q R � k6i h • 1 -AXQir MIL/ ZV^` -� Iy y �. 325 02 e <cl po 0•4 yo 515 y C V at A. ri (- Voctia IC r& 156/3o )- 1 c isp,ficf WE, THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue istory based fishing rights in State Waters in the form of a Dedicated Access Privilege Program © X'- tJ O ✓✓1 13Nt Please Sign and Print Na Community /Occupation t 'c u ' /1, eIrntat PIf)e,ke -v ANeh orAye 4k � V Vessel -f r- sIn"; rte °bitte k/fed eil 2;e Ca m. it.. er- 0_ 5i4 e kr _ -- L, vct ..l a. 1t' 2,e,, - _ h •u_ ci,)°14- - F /v c rc 4 A fcska co r�c1 c' 2��- rhea K � A, CU � N -s'r KOOr4 lc_ F Iv (.- KidirA4- 4.rt ICDa:01 C Li lrt- I¢L r90A) WE, THE UNDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST SB 113. This bill grants the ability to the State Board of Fishery and/or CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program tau i `' & k A. ! , i(-- A O D1 a h .i f a; G✓iLtP U(S C 1 l 55 F`/ I . i?f bU¢; I ,c7. --'/' aid .z\ :_W._,' J am.-_. Roc 7fja M Pso j d _ra�- L <v' a U S. -en{ / 4 lc 1` f r, t K/ 7 'L. WE„ THE UNDERSIGNED CC)NCERNEI) c1 i:!LENS O_ AGAINST SB 113. This bill grants the ability to the State history based fishing rights in State Waters in the form of a — Please Sign and Print Name 1 1 ‘ r kceytk Fraik !-}urpt,rey5 C' j (�.NHlCO rte. 4 06.v-raft a ('ommunits — \ essel /Occupation F COASTAL ALASKA. STAND UNITED Board of Fishery and /or CFEC to issue Dedicated Access Privilege Program ir e S1( t _ -.. 5N ; L/ Sit. >=�Eec ,fir 1 F U/ s,- 111V ve55e -1 o. , t- ,,, file b uOtiL 2 _ , fi No �`�" WE THE t INDERSIGNED CONCERNED CITIZENS OF COASTAL ALASKA, STAND UNITED AGAINST S13 113. This hill grants the ability to the State Board of Fishery andlor CFEC to issue history based fishing rights in State Waters in the form of a Dedicated Access Privilege Program Please Sig_n and Print Name i Community 41 Vessel/Occu ation _____1 — Cri a_ LC ctcc c1_,-tt,d7 , ' c<4 ( 7 1 V- _.--' 0 f ti, it / A- _L - L--t (4- i 1 1 1 L c r" 1._ L.:1.. LL-7 c I 1— ... i , I l 1 i 1 ; I 44 4 / , _ Ir .-- ( , ), / t ,...■ \ •ii HAA \ --' 1' H +1 I 4 t aillb— 4 r 1 f 't / i IC , .-' it . t" It f- 1 1111 ' 11-1- 44 - L/ / i ''''';‘,.? -•Lif ' k i.... i , : . t H lc / r . ..._ 1 I L1- -‘, 5 ,4 1 ,:47 p4. I C S ) 11 - 71 9)a/2-- Ca. I / 0 66adcl tVitt NAME (PRINT) ADDRESS SIGNATURE qi foie `/ MVEC /T4 f,1,1)\• ri S KocI iC 9 / 4 " ' f 7 S , 1l4Z/.i 4 ?,✓ 1 '4 , . . -' n } ) t L f y� - Y:. 7 � � _____ . J I :.- A f 1 -k'I .V ,A i, ';t, { X /v=im' 3 R "VI F'1 Iiiil . �.r��,^,e--t:. _ Cil ' Wu 111 JY .GF- 't �n..� 'K 3r— /f < �.. 1 >or✓Y�') 7 �� , - --A /v0 16 #1,1 .OX .Po t3... 4 - 01 AK , g 4 ow INEIMPfii %tii111114l ,1 / DK/JE. i Inre ¢rt Tr r //..L1 . • yy���l�L(��17 ,�1i ie2' rj ':s l.ow.F AiwxxS k-c szicNX . Co Si flbi4 - (/��I . . = / `Titus Lt)el0 d Act � ' 0 s -7.� a u s --c :,,,) al 11 '1 ri i � � an z : .: . G ( ' h. 9 N AI I , I i S� 1L # Xi-e f :77 1" ' 0 4. in , i,�p 1 ►�M'!G� /iorMi3._ 'Aka S 4-c1/44--c � i . 1 , , -,c- 'Diu,- !, r F , IA ' Isn� r cj CFlr r1r.n -'id'J , ;.:?, i% l`, r^1""K war s-b // ..vi >ti/ W'' - A fU � I '1 i `7 � A ��/1 �r �2 7 ��k S47r:�su i. U;?I' � �� � � 1 J' . ' fif. - i� . f iet l%!� � . J ' Lere _ ■ . PETITION TO STOP GULF OF ALASKA GROUND FISH RATIONALIZATION WE THE UNDERSIGNED ASK THE NORTH PACIFIC FISHERIES MANAGEMENT COUNCIL TO STOP IMPLEMENTATION OF ANY FURTHER RATIONALIZATION PROGRAMS INTO THE GULF OF ALASKA FISHERIES. 2• Main Identity From: "Shawn Dochtermann" <drdrmannihotmail.com> To: <ptuttle@pacseafood.com >; <charliep ©gctnet> Cc: <kimberly wallace ®legis.state.ak.us> Sent: Wednesday, March 16, 2005 9:37 PM Subject: SB113 Addressing the issues of the GOA rationalization. Page 1 of 3 Senate Resources Committee, legislators, and citizens of the State of Alaska, It is well known that the state wants to rationalize the state water fisheries before the feds finish their own rationiliazation of the GOA. The parallel fish should be allocated from the federal water so we don't have to spend a bunch of money to create a new program which won't facilitate a rationilization of the state water fisheries. If DAP were introduced a major portion of the state water quota would be placed into the hands of possibly 50 persons . This sounds like the lobbyism for the trawl fleet is strong and convincing. My question is when is enough enough? In regards to the discussion of the state water groundfish rationiliaztion. At the present time there is not a race to fish in the pot and jig fisheries. Those that participate in these competitive fisheries execute them in a safe and reasonable manner. We can't prosecute these fisheries in rough weather as it is not safe or productive. I personally watched the trawl fleet leave the night after the last hearing was initiated. The trawl fleet was leaving into 25 ft. seas. They're the ones with the race to fish. Here are the number of vessels that were engaged in the groundfish fisheries within in the past 8 years. The pot and jig fleet have 53 and 106 harvesters in the Kodiak area at the present time. The all -time high of registered vessels was 81 (1999)and 146(2000) respectively. The trawl fleet in Kodiak and AK Peninsula has shrunk from 85 vessel in 1998 to a present 43 in 2005. Actually there has been a decrease in effort. If there is a decease in effort why would there be a need to rationalize fisheries that are limiting themselves economically. Maximization of the economic values of fish only applies to the trawl caught fish. The quality of pot and jig caught fish is at it's all time high. The trawl caught fish are of lesser quality and value, so why should they even fish in the state waters. The issue of value added products has no backing. The surimi ,fishsticks, and fillets produced are the values added products already in the market place. The pot and jig fishery have almost no bycatch, and 3/17/2005 Page 2 of 3 what is brought aboard is returned alive. The trawl fishery has a history of enormous amounts of bycatch. I have trawled and personally witnessed the waste and dumping of dead bycatch. There will be great economic distress to all the coastal communities if dedicated access privileges are endorsed. At the present time most of the communities are justing getting back on their feet after the rationilization of halibut and black cod. Anytime you take a public resource and make it a private industry many jobs are lost and the trickle down effect is substantial. Limited entry has worked for all the fisheries that it has been attached to in the past. Why can't the criteria for limited entry be changed , so it is proactive to a an overcapitilization of a fishery? The global market place for consistent supply and quality in the marketplace already exist and are at the their maximum effeciency in groundfish in GOA. Limited entry with the tools already in the BOFs' pocket are all that are necessary to keep these fisheries in check. How will this dedicated access privilege benefit the resource? Also the users and communities dependent on these resources? If you take a pie and you give 5 people a piece rather than 20:then you are making it economically more difficult for the other 15 plus the businesses that are supported by them. This legislation give the BOF the power to allocate the resource and hurt the economies of the communities. Yes, we do need to be concerned with biological and resources of these fisheries. The next concern should be the people that are engaged and affected by the fisheries, such as fisherman, processors, support businesses, and all others in the coastal communities. It's my belief that the people are the state and their concerns come first before state government. Remember that the government is there to protect and serve. I feel that in this case they are halting our abilities as fisherman to engage in harvesting a public resource. The state would be taking ownership of a public resources and it making it a private industry within a state government. Doesn't that sound wrong to you? It sure does to me. The best way to fix this problem is to administer limited entry to the pot and jig fisheries and put the trawlers outside 3 miles. Limited entry would be open access, so all that participants fish until the TAC is caught. There is another issues that need to be resolved and that is the BOF. The board of fish should be 13 elected officials from the demographics of the state fish and game commercial and subsistance areas. That would make it less likey for 3/17/2005 With the gravest concerns, Shawn C. Dochtermann Kodiak, Alaska Page 3 of 3 special interests groups to be involved in issues pertaining to commercial fisheries. I believe that the BOF doesn't always do what is in the best interest of the people of this state. There is far too much corruption in lobbyism and all the little guys like me are tired of fighting big corporations and associations that stand to win in the political processes of this state government with regards to state waters rationilization and all other aspects of our lives. 3/17/2005 Mark Wade 5103 Chuckanut Drive Bow, Washington 98232 (360) 766 7123 F/V Falcon I am strongly opposed to Senate Bill 113. I have been fishing for thirty three years in Alaskan waters and I think dedicated access is absolutely the worst idea to come along. I would rather see a limited entry type system, but before anything happens we need public meetings and comments from conununities that the Board of Fish wants to rule. Kristopher Blessum 2506 East Leonora Mesa, Arizona 85213 (360) 333 9862 F/V Falcon I am opposed to State Bill 113. Victor Buchanan PO Box 4114 Kodiak, Alaska 99615 (907) 486 2051 F/V Chisik Island, F/V Jade Alaska, F/V Decca Dawn I oppose Sate Bill 113. I have been a fisherman for thirty eight years and I have watched the beginning of the limited entry program. I had to fight to stay in the fisheries as a kid. Then, the IFQ program came along. The state fisheries were set up for a lot of people who could not get IFQ's or didn't have them. It was the last fishery that our children would be able to get into without a banker. I also feel that the state waters should be managed by the state. If there are too many people in it, then maybe there should be a moratorium put on the fleet rather than IFQ's and limited entry. Main Identity Page 1 of 2 From: "Shawn Dochtermann" <drdrmann@hotmail.com> To: < senator thomas wagner@iegis.state.ak.us >; < senator ralph seekins @legis.state.ak.us >; <senator_ben stevens@Iegis.state.ak.us>; < senator fred_dyson ©legis.state.ak.us>; <senator bent stedman @legis.state.ak.us >; < senator_ gretchenjuess ©legis.state.alcus >; < senator- gaiy_stevens©legis.state.ak.us >; <representative_gabrielle Iedoux@legis.state.ak.us> Cc: <govemor flank murkowski ©Igov.state.ak.us >; <islandl ©ptialaska.net>; <ptuttleCpacseafood.com> Sent: Tuesday, March 08, 2005 3:55 AM Subject: SB113 personal opinion I've been a fisherman and lived in Kodiak for 28 years. I own a small vessel and depend on the jig groundfish fishery to stay economically solvent. At the present time with open access I can survive. If you rationilize the state waters you will be making me and many others go bankrupt. I'm totally against the whole idea of SB 113. There are no guidelines for the AK BOF or CFEC. If this blank check was handed over to them they will have the powers to manipulate the state water fisheries as they please. When 4 votes is all takes to change my life I don't like it. None of the members of BOF are even fisherman. In fact, I think the BOF (is a load deck) are for their special interest groups and don't follow the true concerns of the fisherman and its communities. In the future these leasable IFQs rights might end up in the hands of an elite few,such as the processors,special interest groups(aka draggers). I would like all state water fisheries left open access, as most participants are Alaskans, but I realize that limited entry with a snapshot of todays picture is the safest bet otherwise. I feel that the fisheries will limit themselves. Take a look at salmon and tanner crab in the kodiak area, not all the limited entry permits are being utilized. If the legislator would do the math they would figure out that to implement and run a plan for quota shares that it would cost more than the value of the fish at the dock. This kind of boondoggle will only put more stress on the small vessel owners of Alaska. Public hearing must be taken so that any individual in every coastal community can share his opinion. What about the impact on the coastal communities? If this bill passes the economy of Kodiak and other communities will drop like a rock. Don't you realize that the small boat fleets are the ones keeping our communities alive financially. Once again special interest groups are trying to bully us into a new realm of privitization. Why is it that we as fisherman have the smallest voice in the creation of fisheries legislation. It seems no matter what we say you never really listen and try to work with 3/15/2005 us. As far as I am concerned this state government is working against the little guy. Until you recognize that we would need to be a big part of this unnecessary rationization we will keep fighting for our rights for open access. With keen observation, Shawn C. Dochtermann PO Box 3886 Kodiak,AK 907 - 486 -8777 drdrmann @hotmail.com Page 2 of 2 3/15/2005 Testimony to the Senate Resource Committee — SB 113 March 16, 2005 My name is Theresa Peterson and I am here to testify on behalf of myself and my family in opposition to SB 113. While my overall concerns with this bill are very similar to many of our local fishermen, concerned citizens and business owners alike, let me share the concerns of how this may impact one coastal family, my own. My husband was born and raised on Douglas Island. He started commercial fishing when he was 12, se getting with his brother on the South end of Kodiak Island in the summer and continues to this day. We met out long lining in the Bering Sea in 1985 and a couple years later pooled our crew shares, bought our own boat and thought we had it made as seining salmon around Kodiak Island in 1988 was our first season. Well as those of us who invested in salmon know we had some tough years ahead financially but we diversified to other fisheries, continued crewing on larger vessels with IFQ's and generally did whatever we could to stay afloat. One of the moves was to invest in pots and participate in the federal p cod season which- always -took place inside 3 miles due to the constraints of a 42 foot vessel in the winter. While our history isn't very strong in that smaller vessels don't generally produce much p cod during rough winter seasons, his ability to fish was also curtailed when one season was lost to take care of his father after surgery and part of another was lost to the death of his mother and the need to return to Douglas for awhile. If this is to be a historical based program then we need to be made aware long before any tools are given to the Board of fish as to what the qualifying years will be, who the participants are and an idea as to what they may receive. Tho we need take a look at what's left over for the small boat fleet. As Lisa Murkowski said, and I quote, "We must all work to protect Alaska fisheries from unfair attacks that seek to weaken our ability to manage our stocks for the benefit of Alaskans and the nation. Fishing is the heart of Alaska's way of life and if I have it my way, that heart will beat even stronger in 2005." Well our hearts are beating here in Kodiak all right, to the level of an anxiety attack for the most part. Many of us may not have much history but we are Alaskans. Shouldn't we be protected? This bill seeks to skirt around the intent of the constitution in granting unequal access rights and an inequitable distribution of a public resource. We do not want to have any part with a program that strips the opportunity to get into fishing for future generations. I quote Governor Murkowski "Alaskans deserve to be heard at all levels of the debate over fisheries management." Well there's a very diverse group of people that have been speaking out here in Kodiak against this bill. I sure hope someone is listening. Governor Murkowski goes on to say "This bill protects Alaska's interest. If our groundfish fisheries in state waters are going to be developed to maximize the state's interest, and the interests of the fisheries' participants, passage of SB 113 is necessary." Well I just illustrated above that this bill will not protect, but will marginalize our level of participation in the fishery, not to mention the fact that we would be willing to give our history up rather than go down this road. I believe the state has proven itself well the ability to protect the states fisheries and there are plenty of tools in place to protect Alaska's interest and that of coastal fishermen from the impact of the federal program. I will not attempt to go into these due go to time constraint and the obvious myriad of complexities, all of which I believe can be solved without SB 113 and its dedicated access privilege program. We cannot discount the face of the water front now, in 2005. We have a diversified small boat fleet that has come to depend on this groundfish resource, most of whom are Kodiak fishing families. Will we be thrown a crumb? If the only ones in the industryrsupport this bill have something to gain and the bulk of the fleet, even those with something to gain, along with businesses and active concerned citizens unite together against it shouldn't that tell us all something? It's time to take a look at who this will benefit before anyone gets the keys to the car. Thank - you Pro's and Con's of SB 113 Pro Proponents say they need the BOF and or the CFEC to have the ability implement IFQ's in state managed groundfish to prevent a race for fish inside state waters when federal managers rationalize federal managed groundfish fishery's. Con Opponents say that currently there is no race for fish in the jig and pot fishery and that the only race for fish is in the trawl fishery. Opponents also say that there are other ways to prevent the race for fish. Trip limits, gear restrictions, time and area closers, staggered seasons between state and federal fisheries Pro Proponents say that during the parallel fisheries when fish are harvested in state waters that the federal managers can't allocate that history so the state needs to mirror the federal program so they can get their history. Con. Opponents say that SB 113 has no standards or guild lines that address the philosophy of the state. Opponents also say that one way to solve the issue of fish caught in state waters during the parallel fisheries is to give them their history but not allow them to harvest inside state waters after rationalization is implemented. Note: Currently under the state managed Sablefish fisheries if you are a holder of federal issued IFQ's for sablefish and you harvest in side state waters it comes off your federal IFQ's. Not until you harvest all your federal IFQ's can you participate in the open access state sablefish fisheries Pro Proponents say that in some areas the fishery is prosecuted for the most part in state waters. And that with out the ability to harvest inside state waters in would make it difficult if not impossible to harvest their IFQ's Pro Proponents say that they support the BOF process and that the BOF process will include all stakeholders. Con Opponents say that with the passage of SB 113 the dynamics of the BOF process will change. It will be over run with the political powerful and the independent fisherman will be the loser. Pro. There are losers and winners in fish politics and the philosophy of the state is Stone Age. Proponents say that the development of SB 113 has been done in an open public process and that the opponents are "uninformed hysterical obstructionist' that are unwilling to accept innovated management plans to meet the global world. Con If it weren't for the conservation and allocation philosophy of the state coastal communities and fishing families would fall (further) the way of the family farm. Con Say that there is a race to rationalize all groundfish in the GOA because of the current discussion about national standards for IFQ's that will/could address the adverse effects that have occurred with the implementation of halibut and sablefish IFQ's i.e. absentee ownership, leasing, huge reduction in crew member and skipper wages. If they implement IFQ's in the federal and state groundfish fisheries before standards they will be granted grand fathered rights and will not be affected by any new IFQ's standards. Pro It's just for groundfish Con If the state changes its philosophy and the intent of the limited entry act that salmon and other fisheries will be next. 2 \ » «lL [1.1 :mom y ktived « 2 + § a Qar f at dortaaultr re lrt \ y am / n , ∎+?» only tienhfit the "% \» \ \\ ( +( \_ 2 pi F o \ A � : B Win- % / :Qt :y\ w64 > IL \ :$ itig Aa w4+ nt 4.' %1 t 001 z 2004 2005 Isle+ q4 a1 ng 5 2 i q>:1 re Vie X17, a ;I - I , 14,-1 d ,r i}ri bU 447 20 f., 3as, y pj`t , 4 i ;,.. evervttung - that .lives in the net's pass. The- ( g force t ehlnd th ederal .Ind state figs ! i' .fi 4111 ie. the tTn I t � 2r ' t 'C ,' ellul lil }i 11.14 the nun 3‘ ,1 r< cal ` e • A iruuuai tauuu the r r.+u' le 1 rtftire(tjenl program. The trawl I,i get a Onavaoteed share of• Ih aciountloshiaaionoc, 4t1 4.1[ 0.1 lt ir dll ficeoaiing pl I t Wiz a ;l Srr oA∎ ii tlt. The yi,ti,utiti ttiolFtiti 4h n ' >,111 he uiare If , Y'f3" r5 t!Lv'�.ut� m'4llu `IUal_ pal Ii� .. itnl Itr d haI I n txr nhn1 41,t1(.' ■ I na�t glin -]"f�IJ i e f al 0 uS VLn.i I r } I In 4 mt t e e. rev o.O y +M 0' IC' IrtldI'nr11,1. l3erf b n10hr bI 11 ` h0 {CI R :�iht l=t( }L Lfz> tlf awl 1 IF rt :rh. • rt(iq�,/,I ll •ftn ly ' "I rt , i Y 24 9 } kU Jhab lrI]7! PI„ C� iil nl I} �l tllh it c61 t t it iusc' +1c1, I ,'iltic 1:L, y. [II .tIr 4rIot It Yg:hue oh part of the Legislature to pass this bill or even - ive it serious consid In ;infer for CtiR iGl •kingipi1ftIQS Sd41i0litilt11 t ipfl.. }ton Inlr ilkfdit[vg Jti 0§4.01,14! *kat - ?Aj • ede.t.11 .nul -state h 11 ir1N.4LtZATION process must he ',1OI' UI U! MIL o LI i< <aid and done, and10 hill and ratiohilliunion , •hould qo thronib the oatpeli11 e: v1111 hr Lt 1 t�c • I ve us ' ,witb ,inothef gill {M 1 krl Sty suggetiimi is fI t4,dm `f f creaSO' or the ,rite %rifer a hEy 44 ,. rfi the TA ( ,Ad an:eient I 4: r r e trawl eft of drrFv't r ht g" t' 0 A . 'Ib 1x 1 +pr 1°��� of ef ,of the'` yuotll oitie'4f*glt'k et the ' Ftatthii codlp th rsr4" t h c'{''i r`i Y r � ' ter Kt - r] t{F Res llalf�r Ea,., ' .. � , : +ii v • Let's take a real walk of the dock..: and talk about Senate Bill 113. SB 113 is about changing the state of Alaska's public policy on who qualifies for the ability to use a %resource. S13 113 is about the Alaska Board of Fish receiving the authority to allocate ground fish and the right to 'choose to whom the fish will be given: This bill, if passed, is about trading equal access to our re- sources, for leased unequal ac- cess. If there is a hitch in the 49 GIS df Ada Attie l fiou,� t; is ere]' arall;l ground 4 fishery eet- itllnt to lhters =. onsTi iitiol bf the ,late of Alagleattia threes etlu#f ac- cess to its resourges fo all Alaskans' Therefore IFQs are unconstitatiotint. TeFedertl Parallel t s stadiVoreceire no history ,* the game of ra- tionalization 4 itiaiifdsh has, miles. ' ks.will leave them without ownershlf i'iglits like their cotiglerp3i7s,ftshing %just outside of three math $B 11,13 attempts to reconcile tRis With a leased access privilege called Deditsatetl Acces 'rivilige (DAP)land is dedicated access privilege, This is constitutional because its a privilege and can be revoked without com- pensation, So fat. OK? Under the state constitution, it is not OK to grant access rights to anyone other than in dividuals. SB 113 gives the au thority to give access rights to "persons or vessel owners' - (Line 10; Page - 2.).The word persons under the legal defi- nition means any entity ... this could be an -individual, assn ciation, corporation, group, etc. This is where the change in public policy and the pingement to the constitution starts. No lon`g'er, will indi- vidual fisherman be the card holders ... businesses and cor- por a :.. svibli #fadto GUEST OPINION By Ron & Julie Kavanaugh cess for subsistence ... There- fore we allowed the federal government to take control of our subsistence rights. Now, it seems when monetary uet j 4i we can stir `problern ." SB 113 creates unequal access *llgcitting history_ based n privileges" (non-per DAP is as close as the state has come to IFQs without a constitutional amendment. Un- equal access will lead to con- solidation of the fishing fleet. Our communities will suffer economically. 'his MI is written to ben- efit a few and encourage the continuation of Orulf Rational- ization. As a Federal Parallel Fisher, we do not feel SB 113 will give us the benefit /secu- rity that is promised. This program will marginalize small boat fishermen. It will encourage selling out (con- solidation) and -;lead to coop- eratives due to marginalizatioti. As aFederal Parallel Fisher, we prefer to be given' our IFQs ill the Federal Program and fish them outside three miles. Thereby, we would not be compromising the state's constitution. The-Kavanaughs have fern Kodiak ` residents for, 36: and 22$ years respectively. Their fishing' history goes back to 1976. Ron has participated in a diverse group of fisheries throughout the years. He ac- tively rdns'the family boat and is on the water eight to 10`. 'trittintlittutr =the year. Julie. a,� 05 32 a 7 • `� 5. N C 17 tr 8 VI e� ° ry 0 ;� 25. ° mT_ 50, g. azp.co CD ` y M ¢ p w Y" rAi ,&,6 to f0 O [ 1 s g .0 - g P ifEt c � �^ � , to w m a w _' agl Thursday, March 10, 2005 Rationalization bill takes hits By oaxe�sia By JAN DANELSKI Mirror Writer More than 50 people from the Kodiak fishing community gath- ered at the Legislative Information Office Wednesday afternoon for the first hearing on Senate Bill 113. The bill outlines a program for developing designated access privileges in Gulf of Alaska groundfish fisheries inside three miles, giving state managers the authority to move forward with a state - waters rationalization plan as federal managers develop their plan. At stake is how the state will grant access to fish and recognize fishing history inside three miles. Small boat fishermen testified against the current form of SB 113, sighting vague .language and in- sufficient time for coastal commu- nities to study and testify on the legislation. Several urged regional meetings on inshore groundfish ra- tionalization and more involve - ment by small, independent fish - ermen. Small -boat owner and fish - erman Donnie Lawheadsaid he's wary becaulsejtat'one little phrase in a law can change lives forever. Supporters say the legislation was developed by the Alaska Rationalization • Continued from Page 1. in federal waters. _But small -boat fishermen domi- nated testimony citing many prob- lems with SB 113. "It potentially gives history to vessels, not the operator," fish- erman Alexus Kwachka said. This- will lead to consolidation and job loss for coastal commu- nities, he said. As an example, Kwachka cited a rise in absentee ownership in the Chignik salmon cooperative where, he said, some permit holders have found ways to continue fishing their gear in other areas while holding a place in the Chignik operation.., Chuck Thompson, representing the local jig association, opposed SB 113 for being too broad and granting too many undefined pow - ers to the BOF and CFEC. On a personal level, Thompson said there has to be entry-level op- portunity for economic stability of our coastal communities. "I don't believe in personal ownership." Local fisherman Tim Gossett said he is afraid SB 113 gives the BOF too much power and the wording is too ambiguous. "I want the opportunity to compete with my fellow fishermen," Gossett said. Kodiak businessman Lonnie White thinks the dedicated access privilege program outlined in SB • Board of Fisheries (BOF) over the last year and a half. They say SB 113 is a tool allowing the BOF, in cooperation with the Commercial Fisheries Entry Commission (CFEC), to work with representa- tives of the various groundfish fisheries to develop rationalization plans. Bruce Twomley with the CFEC urged approval of the bill because it is strictly limited to GOA groundfish and it provides for ex- tensive public comment. Further- more, it is there (as a tool) only if the BOF and C1•±C want to use it, he said. 113 will become an ownership privilege. This goes against the wording and the spirit of the Alaska Constitution, he said. In Kodiak, 15 testified against SB 113 and one testified in sup- port Mike Milligan from Kodiak was at the Juneau hearing and tes- tified against several specific parts of the bill. At one point he asked Sue Aspiund, fisheries policy special assistant with the Alaska Department of Fish and Game, also urged passing of the bill. Steve Drage, vice president of the Alaska Draggers Association which represents 30 trawl ves- sels, said his group supports the bill. Trawlers who took their fish inside .three miles were partici- pating in a federal fishery .with federal regulations, even though it occurred in state waters, Drage said. What they want is parity between their state fishing his- tory and the history they earned > See RATIONALIZATION, Page 5 KEEPING A CLOSE WATCH — Lou Dochterman, Donna Jones and many others from the Kodiak fishing community crowded the legislative office Wednesday to testify or just monitor the t hearing of Senate Bill 113 via teleconference. Sen. Gary evens attended the session in Juneau and Rep. LeDoux oined the local audience in Kodiak. (Jan Danelski photo) the committee to legally define the term "persons" as it is used in the bill. "Persons" is an all- inclusive term including corporations and partnerships as well as individu- als the committee responded. Sen. Gary Stevens from Kodiak also attended the hearing in Ju- neau and Rep. Gabrielle LeDoux joined the group in the legislative office in Kodiak. Kodiak, Alaska Vol. 65, No. 42 Officials weigh in on SB 113 BR would give agencies authority to form ration /ization plan By JAN DANELSKI Mirror Writer As the North Pacific Fishery Management Council pieces to- gether alternatives for rationaliz- ing the groundfish industry in the Gulf of Alaska, local attention focuses on Senate Bill 113,4.- moo- d. If passed, the bill would give the Alaska Board of Fisheries (BOF) and the Commercial Fish- eries Entry Commission (CFhC) authority to develop a rational- ization plan for groundfish fish- eries in state waters. Last year a similar bill died when the Legislature ran out of time. "We expect this to pass," Sen. Bew4te wns said in a phone in- terview Tuesday. "Therein- tit'sti- s, l s er goarenater'ea bgt`d, ,1t ° k 'managers- support it — it's an issue thrtheen de- Iiberral `r`ottrnice ears." Thnstratnatatrioamome in „ar- allel-with fcderal-planneranpro- teet'ffisherntepa, aid. Julie Kavanaugh, a member of a committee of fishermen, spoke at a joint work session last night with the City Council and Bor- ough Assembly encouraging them not to back the bill with a resolution' to the Legislature. Kavanaugh explained her con- cerns with SB 113 in an earlier phone interview. "It was introduced because the BOF wants the authority to give fishing privileges to entities other than , +, t ” She said. „S rrt:'- al , ve the -tools they ' need'toramose groundfish fishing in std wa- tees; awy snt nresariS $ear type and ve ni size t ha ve roM `0 fl air a Kavanaugh said. "Senate Bill 113 changes the management plan for Alaska fisheries. It gives the state awe- some ability to dictate who has fishing privileges. This bill is profound. It's the most important thing to happen to fish policy since limited entry," she said. > See SENATE BILL, Page 5 .. 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V rte.. - f '-S d N k . fi O "w 0 3) p = co O rye , v, ° G. �. ` • iv w c; 0 0 h _°. ; ' c a t a • o y ECONOMIC DEVELOPMENT SPECIALIST REPORT Kodiak Island Borough March 31, 2005 3(3 w RESEED — Self- employment Workshops — I have been working with the Division of Vocational Rehabilitation and Thresholds, Inc. on providing employment training for folks with disabilities. Last year we had three one -week training sessions for the twelve clients with disabilities participating in the RESEED program. Mini - Funding Summit — Last May, the Chamber, in conjunction with the United States Department of Agriculture brought a group of federal and state agencies to Kodiak to discuss funding sources available. Approximately 60 people representing a large number of the local non - profits attended the summit. Economic Geography of Kodiak Region: We have completed a study with Northern Economics that evaluates the role Kodiak has in the state economy with emphasis on tax revenues generated and the dollars being spent both within the region and throughout the state. Comprehensive Economic Development Strategy (CEDS): Completed the update to the CEDS plan for 2004 and the annual report that was submitted to Dept of Commerce, Economic Development Administration. We continue to host quarterly CEDS committee meetings. Kodiak.orq Website Revision — Together with Pam Foreman, KICVB and Janelle Peterson - Get On Net the Website has undergone another major revision. Over the last three months we are averaging about 920 hits per day. ALMA Project: Last year the Chamber signed a $5,000 contract with St. Mary's ALMA group to perform a business gap analysis to determine what goods and services are not readily available or are in limited supply in the Kodiak community. We conducted 8 workshops and received input from 102 local residents. Together with Kodiak College and the University of Alaska we were tasked with identifying employment opportunities for the Latina population in our community. I presented the findings of the project to the business community last October and made a presentation on this project to a Community Economic Development planning workshop in Anchorage in November and to the SWAMC Annual Conference in January. Southwest Alaska Municipal Conference: I continue to participate as a board member for SWAMC. Last year one of our major projects included the Quality of Life Index for the southwest region. The project is undergoing some revisions and upon its completion I will publish the findings for Kodiak. B usiness Incubator Project: As part of an offshoot of the ALMA project, the Chamber, along with a group of interested organizations is looking at the feasibility of a business incubator in our community. A business incubator encourages entrepreneurship, supports the development of new ventures and fosters greater business diversification in the community by sharing facilities, comprehensive support services and mentorship. Presently the group is looking at funding sources to cover the costs of the feasibility study. Foreign Trade Zone Activation — An annual report was submitted to the National Association of Foreign Trade Zones. We worked with Vern Chase, Alaska- Northwest Development Services and Lynden Transport on the preparation of a FTZ operations manual, a requirement for site activation. The manual was completed and submitted to the NAFTZ. As of November 26 2004 the FTZ site #232 at Pier II has been officially activated. Large Vessel/Travel Lift Survey: Completed a survey that quantifies the economic impact of large vessel owners on our community and their need for a large -scale ship lift. Worked with the City of Kodiak on the grant application for funds to cover the project. Completed a survey of businesses that may be impacted by such a project to determine their level of interest and support. Fiber Optic Project: Over the last year I have met with a number of folks involved with the project, including those working on the seafloor study from Monashka Bay to Narrow Cape, and cable and equipment suppliers. We recently hosted a luncheon forum to bring the community up to date on what's happening with the project. The project is expected to be operational by late 2005. Kodiak Municipal Airport: I was invited to participate on the technical advisory committee to study the Kodiak Municipal Airports Systems Plan. The committee is looking at the project goals and safety issues associated with the airports. The committee has been tasked with providing general guidance on the development of alternatives for future airport improvements. Foreign Visitors: Last July, I assisted with two groups of visitors to the Island. A producer and his cameraman from Korea were interested in filming various aspects of the salmon industry as well as getting shots of the island. Later in the month, three fish buyers from Hong Kong were in town to make contacts with processors and learn about our products and quality control systems. In September a delegation from Iceland was in Kodiak to learn about our fisheries and to make industry contacts. Earlier this month, fish buyers from Taiwan visited Kodiak to make contacts with folks in the local seafood industry. Arrangements were made for them to meet one -on -one with seafood processors and to tour three processing plants. Kodiak Branding and Marketing Committee: Works continues with the KBMC. Last year we finished a project that was funded through DCED for $130,000. Recently we received funding of $80,000 from the DCCED /USDA Regional Salmon Marketing Mini- Grant program for funds to cover continued marketing efforts of pink and coho salmon. Thank you to the Kodiak Island Borough for their contribution of $20,000 that will cover costs of an employee to develop a quality assurance program. Tourism AMHS Project: Working with Quentin Fong, Fisheries Industrial Technology Center and Pam Foreman, Kodiak Island Convention and Visitors Bureau on a project that will measure visitor satisfaction of passengers exiting the island via the ferry system. Funding for the project has been secured from the Alaska Marine Highway System and the Marine Advisory Program, University of Alaska Fairbanks. Kodiak College Advisory Council: I was invited to sit on this council and have agreed to a 2 -year seat. We have been working on bylaw development and have been involved with recruitment of the College Director. I participate on the Community Outreach /Public Relations sub - committee of the council. CHANGES IN THE AREA ECONOMY SEAFOOD 450,000,000 - 400,000,000 - 350,000,000 - 300,000,000 - 250,000,000 - 200,000,000 - 150,000,000 - 100,000,000 - 50,000,000 - Conmercial Seafood Harvest Value & Volume Port of Kodiak 1990 - 2003 O N W O N CO n CO 0) 0 N 10 01 CO T Of 03 Of 03 0 O) O O O 0 0 0) 0) W 0) 03 01 03 W 0) O N N N N Source: Ak. Dept. of Fish and Game Kodiak remains one of the top three fishing ports in the USA in terms of value and volume of fish landed. In 2003, 274.4 million pounds were landed at a value of $82.9 million compared to 2002 when 252.5 million pounds of fish were landed with a value of $62.1. Although groundfish landings are expected to increase over the next two or three years, prospects continue to appear competitive for Alaska's salmon industry because of the large supply of farmed salmon in the world salmon markets. The expansion of the farmed salmon market has led to a decrease in the value of salmon permits and a lesser demand for the more expensive "wild" grown product. Kodiak's Top Employers - 2003 Name 2003 Employment 1 Kodiak Island Borough School District 435 2 North Pacific Processors Inc. (APS) 264 3 Trident Seafood Group 200 4 Providence Kodiak Island Medical Center 190 5 City of Kodiak 159 6 Wal -Mart Associates 147 7 Kodiak Area Native Association 132 7 Ocean Beauty Seafoods 132 9 Western Alaska Fisheries 125 10 Homeland Security 123 11 Safeway Inc. 119 12 University of Alaska Anchorage 84 13 Kodiak Inn Inc 82 14 AK Department of Fish and Game 77 15 Brechan Enterprises Inc. 74 15 Global Seafoods 74 15 International Seafoods 74 18 Ki Enterprises (McDonald's) 72 19 Kodiak Electric Association 47 19 AK Fresh Seafood Inc. 47 19 Ben A. Thomas Inc. Alaska Division 47 20 Kodiak Island Housing Authority 43 EMPLOYMENT Kodiak's average annual unemployment rate in 2004 increased to 9.7% from 9.5% reported in 2003. The number of jobs remained virtually the same at an average of 6,073 as did the size of the active work force at approximately 6,724. The unemployment rates for 2004 went from a low of 5.7% in July to a high of 16.5 % during December. These wide fluctuations in employment continue to be a challenge for the community. Notes: USCG and commercial fishermen are not included Cost of Living Several studies exist for the purpose of comparing the cost of living between cities in Alaska and around the country. Because of differences in methodologies used to determine cost of living statistics, each survey shows a different result when comparing costs between locations. 150 1 140 130 - 120 - 110 100 - 90 - 80 130.8 Comparative Cost of Living 3rd Quarter 2004 ACCRA Survey 122.5 128.4 134.5 100 Kodiak Anchorage Fairbanks Juneau Nat'l Ave. In the American Chamber of Commerce Researchers Association (ACCRA) cost of living study, a standardized list of 59 items is priced during a fixed period of time. The average price data for each reporting city is then converted into an index number which is used for comparative purposes. The data compares approximately 300 urban areas. It does not take into account local tax burden or income levels, and is only intended as a comparison of prices relative to a national average. Four Alaskan cities are included in the most recently published ACCRA study: Anchorage, Juneau, Fairbanks, and Kodiak. POPULATION According to the Alaska Department of Labor, the estimated 2004 population of the Kodiak Island Borough is 13,466, going down slightly from the estimated 2003 population of 13,811. However, population has remained virtually steady since 1996 when the estimated population was 14,058. 20,000 15,000 10,000 ilitiki . _ - .[1111 o p , 47" �e �9q , Ce ,�9 ,�Cb , , , ,i 1 , � d' i' 0 X 9" ,t ti 0� ry ° ° ry , � fi' Source: AK Dept of Community & Econorric Development Kodiak Island Borough Population School population has remained virtually steady over the last 2 years (2661) with a slight increase in population in the village schools. BANK DEPOSITS Bank deposits have remained virtually steady from last year at approximately $128 million. This includes deposits from Kodiak's three commercial banks. Because this is a "snapshot" taken on June 30th of each year, it may not accurately reflect the economic situation brought about by the variability of the salmon season. SALES Gross sales receipts increased 1%, going from just over $304 million in 2003 to over $308 million in 2004. Gross sales have increased by 13% since 2002. Retail sales to consumers increased 10% going from approximately $113 million in 2003 to $125 million in 2004. HOUSING Kodiak's housing market continues to be very tight (approximately 1% vacancy rate) given the low interest rates available. In 2004, rental vacancy rates in Kodiak dropped over 2% from the same time in 2003. Median contract rents for three bedroom apartments increased 2.5 %, from $1,316 in 2003, to $1,350 in 2004. PROPERTY VALUES Property assessments have increased from last year due to new construction and other property just now becoming taxable. A consistent pattern of reappraisals, and the standardization and increased quality of both the real and personal property rolls has continued. Taxable value of real and personal property for FY2004 is $808,291,775, an increase of $47,839,918 (6 %) over FY2003's value of $760,451,857. 3I3iJ2oo6 WiS prepared by Kodiak Chamber of Commerce Revised 1st Quarter 2005 funded in part by City of Kodiak and Kodiak Island Borough TABLE OF CONTENTS TABLE OF CONTENTS 1 COMMUNITY PROFILE 2 THE SETTING 2 CLIMATE 2 LOCAL BUSINESS PROFILE 3 PORT OF KODIAK 3 MARINE FACILITIES 4 TRANSPORTATION 5 COMMUNICATIONS 6 EDUCATION 6 ECONOMY 7 UTILITIES 8 FUEL DISTRIBUTION 9 GOVERNMENT SERVICES 9 TAX ASSESSMENTS 10 HEALTH CARE 11 LAND OWNERSHIP /DEVELOPMENT POTENTIAL 12 HOUSING 12 COMMUNITY LIFESTYLE 12 VILLAGES 14 ECONOMIC INDICATORS 15 POPULATION 15 LABOR FORCE 17 EMPLOYMENT 17 INCOME PO COST OF LIVING 21 RETAIL SALES 22 BANK DEPOSITS 22 SEAFOOD INDUSTRY 23 VISITOR INDUSTRY 25 TIMBER INDUSTRY 25 AEROSPACE INDUSTRY 26 INTERNATIONAL TRADE 27 AIRPORT OPERATIONS 97 CONSTRUCTION INDUSTRY 28 CONTACT INFORMATION 29 Revised 1st quarter 2005 1 COMMUNITY PROFILE THE SETTING Kodiak Island is the largest island in Alaska and the second largest in the United States. It is part of the Kodiak Island Archipelago, a group of islands that stretch roughly 177 miles along the Katmai Coast in the Gulf of Alaska, about 200 miles south of Anchorage. The sixteen major and countless smaller islands that make up the group encompass nearly 5,000 square miles, roughly the size of Connecticut. Its location in the Gulf of Alaska and North Pacific Ocean places Kodiak near some of the richest fishing grounds in the world. In 2000, Kodiak ranked as the number three commercial fishing port in the United States in terms of value of seafood landed. More than one -third of the jobs in Kodiak is directly involved in the fishing industry, in either the harvesting or processing sectors. The City of Kodiak is at the northeast tip of the island, 50 minutes by air from Anchorage and three - and -a -half hours from Seattle. The city is the economic, transportation and governmental center of the area. It is located within the Kodiak Island Borough, which encompasses all of the island group, as well as portions of the Katmai Coast. The Alaska State Ferry, MN Tustumena, connects Kodiak with Port Lions and communities on the Kenai Peninsula including Homer, Seward, Seldovia, Valdez, and Cordova. It also makes occasional trips to Dutch Harbor, stopping at Chignik, Sand Point, King Cove, False Pass, Akutan, Unalaska and Cold Bay. The Port of Kodiak is "homeport" to more than 700 commercial fishing vessels. Not only is Kodiak the state's largest fishing port, it is also home to some of Alaska's largest trawl, longline, and crab vessels. Nearly 120 vessels based in Kodiak are at least 80 feet long. CLIMATE Kodiak Island residents enjoy generally mild coastal weather patterns with moderate precipitation and occasional high winds. Weather Statistics Average annual rainfall Average annual snowfall Prevailing wind direction Mean hourly wind speed Source: National Weather Service Revised 1st quarter 2005 67.6 inches 77.5 inches Northwest 10.7 mph Average and Record Temperatures (in Fahrenheit) record low mean January -8 29.9 July 37 54.4 October 10 40.7 Source: National Weather Service 2 record high 54 82 62 LOCAL BUSINESS PROFILE The retail and service business sectors in the City of Kodiak are fully developed. A wide range of support services is readily available for the fishing and visitor industries, which are main sources of income in the community. Local residents and visitors have a good selection of merchandise to fill their needs. Kodiak retailers are committed to quality, service and customer satisfaction. Most statewide financial institutions have branch offices in Kodiak. Three auto dealers offer a wide selection of new and used automobiles. There are 274 guestrooms available for conventioneers, with several restaurants, meeting rooms and banquet facilities. PORT OF KODIAK The Port of Kodiak is home to Alaska's largest and most diversified fishing fleet. It has more than 650 boat slips and three commercial piers that can handle vessels up to 1,000 feet. Kodiak is consistently ranked as one of the top commercial fishing ports in the country. Kodiak is also a vital link in the regional transportation network. As the hub of the Gulf of Alaska container logistics system, Kodiak serves Southwestern Alaska communities with consumer goods and provides outbound access to world fish markets. Regularly scheduled container ships operate between Kodiak and the Pacific Northwest, and between Kodiak and the Far East. Kodiak is a key link for Alaskan Coastal communities. Revised 1st quarter 2005 3 MARINE FACILITIES The City of Kodiak provides public dock facilities. Additionally, waterfront processors have extensive private docking facilities. The Harbor staff consists of 13 full time employees. It provides 24 -hour security for 2,884 commercial vessels, 882 multi - purpose & pleasure craft and 286 auxiliary skiffs. Horizon Lines provide contract stevedoring services for commercial cargo. Municipal Marine facilities include: Pier I /Ferry Dock: 204'x 28' Use: mooring, loading and unloading Services: Water, bulk fuel Pier II /City Dock: 925'x 64' Depth 38' at MLLW; tides range approximately 10 feet Use: loading /unloading of commercial freight and fishing gear Services Bulk fuel, water, covered warehouse. Pier III /Container Terminal: 490'x 64' (880' Bollard to Bollard); depth at MLLW 38 feet Use: Container services for general cargo and fishing boats Services: Water, gantry crane (30 long tons). Small vessel moorage includes: Two harbors with 650 stalls; maximum vessel length, 150'. Tidal Grid #1 232' Gravel Grid 125' Two general purpose docks inside boat harbor. Mooring Buoys: St. Herman Harbor in Dog Bay Tariffs, rules and regulations applying to the use of docks and related facilities are available from the Harbormaster at (907) 486 -8080. Commercial Marine Facilities: LASH Marine Terminal, in Womens Bay, provides service to several freight carriers, freight forwarders and consolidators, construction contractors and Kodiak's diverse fishing fleet. Seaport Terminal Services Inc., a subsidiary of LASH Corporation, operates the terminal and provides all necessary support services. The terminal presently has over 1,200 feet of dock space available. The terminal also has warehousing, yard storage, and crane services with 40 to 150 ton cranes, four to 40 ton forklifts, trucking, waste disposal, and water. Fuel is also available through delivery from Kodiak's local distributors. Seaport maintains three mooring buoys within the "designated anchorage" in Womens Bay. Each buoy has a 15,000 -Ib. anchor and 180 feet of 2 -3/4 inch stud link chain. With swivels located top, bottom and midwater, they provide maximum moorage capabilities for large vessels and barges. Revised 1st quarter 2005 4 There is a 130' X 40' tide grid at the terminal. Vessel haul -out and storage are available for most vessels up to 50' in length. LASH Corporation is presently developing Seaview Industrial Park next to the Terminal with property for sale or long -term lease. LASH Corporation, a marine contractor, is also willing to "Build to Suit" for those businesses joining the Seaview Industrial Park family. Fuller's Boat Yard in Kodiak has installed a Marine Travel Launch Slip that holds vessels up to 150 tons. This greatly enhances Kodiak's abilities to provide ship repair services Additionally, Fuller's has outdoor, dry storage for 75 boats and four 3,000 -PSI pressure washers. It also provides wood, fiberglass, and aluminum repair services TRANSPORTATION Air Services: ERA Aviation and Alaska Airlines provide regular scheduled service. Charter services are also available. The Kodiak State Airport has three paved runways: 7,500, 5,400 and 5,000 feet, with FAA contract tower services. Municipal Airport, located less than a mile from downtown Kodiak, has a 2,500' paved runway. Island Air Services provides scheduled air taxi flights to and from the municipal airport. Although uncontrolled, the control tower at Kodiak State Airport provides traffic advisories. Float Plane Facilities: Next to Municipal Airport, Lilly Lake is the city's freshwater floatplane facility. A public saltwater floatplane facility is at Trident Basin Seaplane Base on the east side of Near Island. There are three ramps with spaces for 14 floatplanes. The landing area is approximately 4,400 feet long. Bus/Taxi /Car Rental: Bus - A coordinated transit system (KATS) operated by the Kodiak Senior Center has limited public schedules providing service between Bells Flats and Bayside, including the airport, town and USCG base. Fare: $2.00. Cab - approx. $15 airport to town. Auto Rentals - 4 companies Highways: The major highway in the Kodiak Island area follows the coastline from Cape Chiniak north, through the City of Kodiak, to Monashka Bay. Rail: None Trucking: Alaska Transfer & Storage, Horizon Lines of Alaska, Kodiak Transfer, and Southern Alaska Forwarding, AAA Moving and Storage. Water: The Alaska Marine Highway System provides passenger, vehicle and cargo service with the MN Tustumena. It connects Kodiak to the mainland road system via Homer, Seward, Seldovia, Valdez, and Cordova. The MN Kennicott , Alaska's newest ferry, takes over the route during the Tusty's annual repairs. The ferry makes occasional trips to Dutch Harbor, stopping at Chignik, Sand Point, King Cove, False Pass, Akutan, Unalaska and Cold Bay. This service is Revised 1st quarter 2005 5 seasonal, running from May through October. Contact the Alaska Marine Highway System for more information: 1- 800 - 526 -6731 or 907 - 486 -3800. Cargo carriers include Horizon Lines, American President Lines, Western Pioneer Shipping Services, Samson Tug & Barge; others make periodic visits. COMMUNICATIONS Postal Service: Kodiak is served by a local main post office. Kodiak Safeway and Alaska Commercial Company offers contract postal stations. Other branches are located at the U.S. Coast Guard Base, in the villages and in the community of Chiniak. Door -to -door delivery is available to the business community within the city. Residential areas have neighborhood delivery and collection boxes. Television: The Alaska Rural Communications System is broadcast to most local residences on channel 15. GCI Cable serves approximately 3,000 subscribers from Monashka Bay to the Coast Guard Base. Island Communications serves residents in the Womens Bay community and Ouzinkie. Public Broadcasting KMXT (Alaska 1) is broadcast on cable channel nine as well as over the air. Internet: Dial up Internet service is provided by AT &T Alascom, Kodiak Electric Association (KEA) /Chugach Electric Association, and Alaska Communications Systems (ACS). Hypemet service is provided by General Communication Incorporation (GCI). Radio: Kodiak has two commercial and two non - commercial stations. Commercial stations include KVOK -560AM ( "country") and KRXX -101.1 FM ( "adult hits ). The local public broadcasting station is KMXT -100.1 FM. Moody Broadcasting Network is available at 107.1 -FM ( "inspirational "). Newspapers: The Kodiak Daily Mirror is a local newspaper, published five days per week. Other state and national news publications are also available. EDUCATION Kodiak Island Borough School District: Kodiak's public school district has a 2004 -2005 student enrollment of 2,661 kindergarten through grade twelve students, including 210 students in the rural schools. The district currently has schools in the seven outlying areas of Port Lions, Larsen Bay, Akhiok, Ouzinkie, Old Harbor, Danger Bay and Chiniak. In and near the City of Kodiak are four elementary schools serving grades kindergarten through sixth: East Elementary is on the comer of Rezanof Drive and Benny Benson, Peterson Elementary is located on the United States Coast Guard Base, Main Elementary is on Powell Avenue near Kodiak Middle School and North Star Elementary is in Monashka Bay on Mallard Way. Revised 1st quarter 2005 6 Kodiak Middle School serves grades seven and eight, Kodiak High School serves grades nine through twelve, and an alternative school, housed off - campus, serves students in grades nine through twelve. Kodiak is committed to a strong basic skills program. The school district focuses on the teaching and leaming of reading, writing and mathematics. Kodiak Middle School, in addition to regular classrooms, also offers a large library, student commons, gymnasium, and specialized classrooms for technology, computers, business and living skills. Kodiak High School offers a sound academic program in math, science, social studies, and language arts. A community -based career education alternative program is also available as an alternative education plan. The high school facility contains general and specialized classrooms, a library, gymnasium, swimming pool and a community performing arts auditorium. Kodiak College: The local campus of the University of Alaska, Anchorage, includes general classrooms, a vocational building and a Campus Center which houses learning labs in computers, math, English and Adult Basic Education. Students may eam two -year degrees including Associate of Arts degree and Associate of Applied Science degrees in General Business, Office Management and Technology, Nursing, and Technology. A 30- credit certificate program is available in Office Management and Technology. Kodiak College also supports University of Alaska distance education programs. Approximately 50 full -time students and 800 part-time students attend Kodiak College each semester. Fisheries Industrial Technology Center: FITC is a unit of the University of Alaska Fairbanks School of Fisheries and Ocean Sciences In addition to its graduate program, the center conducts training in the areas of fisheries and food science. FITC scientists also do research in fish harvesting technology, seafood science and processing technology. Kodiak Fisheries Research Center: KFRC is a $20 million research facility committed to the preservation, enhancement and management of North Pacific marine ecosystems and resources. The KFRC provides labs and office facilities to the National Marine Fisheries Service, State of Alaska Department of Fish and Game and the University of Alaska. The facility houses open seawater laboratories for fisheries, shellfish and sea mammal research. In 2000, the architects and planners of the facility were awarded the 2000 American Institute of Architects Northwest and Pacific Regional Design Award for the design of the Kodiak Fisheries Research Center. St. Herman's Theological Seminary: Prepares students of the Russian Orthodox faith to be church leaders. ECONOMY Kodiak's role as a center for transportation, govemmental offices, timber, and tourism complements its role as one of the Nation's largest producers of seafood. The City of Kodiak has the largest and most diversified fishing port in Alaska and is consistently ranked in the top three largest fishing ports in the U.S. in terms of value landed. Revised 1st quarter 2005 7 Landings to the Port of Kodiak in 2003 were 274.4 million pounds, with a wholesale value of $82.9 million. Halibut is the largest segment of Kodiak fisheries in terms of wholesale value, accounting for over 27% of the total value. Salmon, the next largest fishery, accounts for about 21 %, pacific cod 20% and sabelfish 10 %. Shellfish accounts for about 8 %. Area residents hold 1,158 commercial fishing permits. Approximately 650 people are employed by the harvesting sector of the local fishing industry. Kodiak's processing plants employed approximately 1,147 people and have a combined payroll of over $36 million. UTILITIES The City of Kodiak is the supplier of water and sewer services in and around the City. Outlying residents rely on private wells and septic systems. Water Rates: Commercial - Flat rate /metered Single- family dwelling (inside city) - $25.30 per month Single- family dwelling (outside city) - $30.35 Source: Monashka & Pillar Res. Main Size 4-24 inches Sewer Rates: Commercial - $32.20 per month /unit Single- family dwelling (inside city) - $32.20 per month Single- family dwelling (outside city) - $38.60 Main Size - 4-30 inches Treatment- Secondary Cap.: 4.7 million gal /day Electric: Provided by Kodiak Electric Association, a co -op. Residential User: Customer Charge: $ 7.50 /mo. All kWh $ 0.1380 Commercial Rate: Customer Charge: $15.00 $ 0.1498 first 300 kWh $ 0.1285 over 300 kWh Large Power Users: Customer Charge: $50.00 All kWh @ $ 5.67 Fi 2n,n00 kWh $ n.127 Over 20,000 kWh $ 0 .1138 Processor Rate: Customer Charge: $50.00 All kWh $ 0.1323 Alaska Communications Systems (ACS) is the local access telephone, communications and Internet provider in Kodiak. AT &T Alascom and General Communications Inc. (GCI) provide long distance service. Internet access is provided by AT& T Alascom, GCI, and Kodiak Electric Revised 1st quarter 2005 8 Association (KEA) /Chugach Electric Association, Inc. Aksala Electronics, Kodiak Radio, Radar Alaska, Kodiak Wireless and Bristol Bay Cellular offer Kodiak wireless cellular telephones, radio communication equipment and systems. The Kodiak Island Borough operates the landfill and baler facility. Residents within the City have home pickup service. Borough residents have neighborhood dumpsters. Kodiak Sanitation, a private contractor, provides refuse collection services. The Kodiak Island Borough also operates a recycling program. FUEL DISTRIBUTION Two companies, Thompson Transfer and Kodiak Oil Sales, make home & business heating -fuel deliveries. Marine fuels are available from Petro Marine and North Pacific Fuel. (NPF also has fresh water, year- round). Petro Marine sells aviation fuel. Petro Marine and NPF handle bulk sales of automobile fuels. GOVERNMENT SERVICES The City of Kodiak is a Home Rule City with an elected Mayor and Council, which employees a City Manager. The City of Kodiak and Alaska State Troopers provide police protection for the island residents. The City of Kodiak, Bayside Fire Department and Womens Bay Fire Department provide fire protection. There are 11 fire fighters on the City staff in addition to 25 -plus volunteers. The City maintains a public library and ten developed public parks. The Kodak Island Borough, (KIB) is a Second Class Borough with an elected Mayor and Assembly. The borough manager guides day -to -day operations. The KIB has 16 recreational facilities spread over 229 acres, and a boat launch at Anton Larsen Bay. The City of Kodiak and the KIB jointly provide building inspection services, animal control officers and facilities. The State of Alaska maintains three State Parks on the road system, which are favorite recreation spots. These are Ft. Abercrombie, Buskin River and Pasagshak. The State also provides a wide range of public service agencies in the Kodiak area including: Fish & Game Health and Social Services Employment Center Legislative Information District Attorney Public Defender Ombudsman Vocational Rehabilitation Department of Corrections Adult Probation & Parole Public Safety Environmental Conservation Alaska State Court System Revised 1st quarter 2005 9 Real Property 10.25 mills 2.00 mills Personal Property 10.25 mills none Sales Tax None 6 % Transient Room Tax 5 % 5 % Community & Regional Affairs National Guard SW District Parks Division Transportation & Public Facilities Additionally in Kodiak, the University of Alaska has offices for the Fisheries Industrial Technology Center and Marine Advisory Program. The federal government has several local offices in Kodiak including the National Marine Fisheries Service, National Weather Service, Kodiak National Wildlife Refuge and Katmai National Park and Preserve. TAX ASSESSMENTS Property tax is the largest source of revenue for the Kodiak Island Borough. In Fiscal Year 2003, the Borough collected about $8.1 million in real & personal property taxes. The 2004 assessed value of residential, commercial and personal property in the Kodiak Island Borough is $770 million. In FY -2003 the Borough also collected $702,065 in severance taxes, primarily from the commercial fishing and timber industries Currently, the Kodiak Island Borough's basic mill rate in 9.25 mills; however, for service districts outside the City of Kodiak there are additional mills assessed for road, lighting and fire services The maximum property tax rate in the Borough is 12.5 mills. Senior citizens and disabled veterans are exempt from paying property tax in the state of Alaska. In Fiscal Year 2003, the total value of exemptions for senior citizens and disabled veterans in Kodiak was $325,604. Tax Kodiak Island Borou h City of Kodiak Revised 1st quarter 2005 10 Juneau Ketchikan Kenai Mat -Su Anchorage Fairbanks HEALTH CARE Real Property Tax Rates - Fiscal Year 2004 12.00 12.80 Kodiak 13.75 10.25 12.45 11.80 16.18 15.22 6.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Source: AK Division of Community Advocacy Mill Rate 20.30 • Highest Rate • Lowest Rate 30.63 The City of Kodiak generates much of its operating revenue from sales taxes collected within the city limits. The cap on the amount of tax collected is $45 per transaction. In FY 2004, the City collected $7.3 million in sales tax and $117,202 in transient room taxes (hotels and B & Bs). The City also assesses tariffs on goods transferred over the municipal docks, which are used for harbor maintenance and improvements. In FY 2004, $314,931 in wharfage fees was generated at Piers I, II & III. Providence Kodiak Island Medical Center is owned by the Kodiak Island Borough and operated -- under a lease- management agreement — by Providence Health System of Alaska. The borough recently completed a major renovation and expansion of the hospital. In 1999, the Providence Kodiak Island Medical Center received accreditation from the Joint Commission on Accreditation of Healthcare Organizations (JACHO). Community health care providers include physicians, chiropractors, dentists, optometrists, pharmacists, registered nurses, public health care nurses, physician assistants, respiratory, speech and physical therapists. The Kodiak Area Native Association contracts with the Alaska Area Native Health Service and Indian Health Service to provide health care services to Native Americans in Kodiak and outlying villages. Revised 1st quarter 2005 11 LAND OWNERSHIP /DEVELOPMENT POTENTIAL The Kodiak Island Borough has 4,800,000 acres within its boundaries. Ownership of this upland area is constantly changing. The approximate acreage is: HOUSING Federal: 3,400,000 acres Native Corp: 675,000 State: 639,000 Local Gov: 70,000 Private: 16,000 Less than 1% is in private (Non- Native Corporation) ownership. The City of Kodiak owns 280 acres of land on Near Island, accessible by bridge from downtown Kodiak. It is the site of the Fisheries Industrial Technology Center of the University of Alaska - Fairbanks. This is also the location of the Kodiak Fisheries Research Center, a multi- agency research complex, owned and operated by the Kodiak Island Borough. The Alaska Aerospace Development Corporation (AADC), a public corporation of the State of Alaska recently launched its third rocket from the commercial spaceport on Kodiak Island. Two more launches are scheduled during 2001. The Kodiak Launch Complex (KLC) site is located on 3,100 acres of state -owned land at Narrow Cape, about 30 miles south of Kodiak. The area is an ideal location for launching small satellites into polar, high inclination and Molniya orbits. The State of Alaska, U.S. govemment and private aerospace companies are supporting the development. In 2000 there were an estimated 4,489 housing units, (including mobile homes and Coast Guard base housing), in the Kodiak Area. The average number of persons per household is estimated to be 2.97. Several fish processors operate bunkhouses for their workers, some of which offer cafeteria services Several local real estate firms offer the newcomer assistance with their housing needs. COMMUNITY LIFESTYLE There are over 17 active churches representing many denominations in Kodiak. These include: Russian Orthodox Roman Catholic Baptist Evangelical Episcopal Pentecostal Jesus Christ of Latter -Day Saints Lutheran Assembly of God Revised 1st quarter 2005 Unification Church Seventh Day Adventist Hebron Presbyterian Church of Christ Scientist Jehovah's Witness 12 Many Kodiak residents express their generous nature by participating in the many service and nonprofit organizations in the area. These include: American Legion American Red Cross Elks Club Filipino - American Assn. 4H Kiwanis Kodiak Council on Alcoholism Kodiak Crimestoppers Lions Pioneers of Alaska Rotary Salvation Army Senior Citizens of Kodiak Soroptomist International Special Olympics Veterans of Foreign Wars Young Life Youth Scouting Programs Recreation: Both local residents and visitors enjoy outdoor activities year- round. Topping the list are hunting, fishing, hiking and camping. Guides, lodges and air taxi services help individuals take advantage of what the area has to offer. Adult and Youth sporting activities are organized seasonally for volleyball, basketball, baseball and softball. Kodiak has a ten -lane bowling alley, a 300 -seat movie theater and a teen center with two racquetball courts. There are figure toning salons and a Nautilus Fitness Center. Residents also have access to the high school swimming pool and school gymnasiums for recreational activities. The U.S. Coast Guard base also offers a ten -lane bowling alley and a 398 -seat movie theater. There is a gymnasium that includes a full size basketball court, an Olympic size swimming pool and a fitness work out facility. There are several outdoor basketball courts, barbecue areas and many parks. Additionally, there are a sled /ski chalet and a nine -hole golf course, managed by the Coast Guard, but available to community residents. Annual events for community fun and celebration are the Crab Festival in May, Bear Country Music Festival in July and the State Fair & Rodeo in September. The Kodiak Arts Council sponsors several concerts and stage plays for community enjoyment. Several local nightspots feature live bands and dance music. Revised 1st quarter 2005 13 VILLAGES Kodiak Village Profiles Akhiok 56 YES Population Air Strip Boat Harbor Cold Storage Community Hall Community Septic Community Store Electric Service Ferry Service Library Medical Clinic Public Safety Officer Scheduled Air Service School(s) Seafood Processing Second -class City YES Telephone Service YES YES Tribal Council YES YES U.S. Postal Service YES YES Visitor Lodging YES Notes: (1) Intermittent - floating processor. YES YES YES YES YES YES YES YES Karluk 26 YES YES YES YES YES YES YES Larsen Bay 96 YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES Old Harbor 196 YES YES YES YES YES YES YES YES YES YES YES (1) YES YES YES YES YES Revised 1st quarter 2005 14 Ouzinkie Port Lions 187 238 YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES YES Kodiak Island Borough Population 20,000 15,000 10,000 5,000 00 1 Source: AK 4 , 000 01, OO w 00 1. O O 9 0° 0 0 5 °' O a , 0 0 0 O° 0 00 Dept of Commonly & Econonic Development 0 0.. 0 01' O OA O Oa ECONOMIC INDICATORS POPULATION According to Alaska Department of Labor, the 2004 estimated population of the Kodiak Island Borough is 13,466. Although figures show a decline in 1996, this may be due to the use of a new method of estimating population. Revised 1st quarter 2005 Population - 2004 Estimate City of Kodiak Akhiok Chiniak Larsen Bay Old Harbor Ouzinkie Port Lions Karluk Womens Bay USCG Base Other Areas Total - Borough 6,199 56 51 96 196 187 238 26 666 1,750 4,001 13,466 Source Alaska Department of Labor The City of Kodiak is the seventh largest city in Alaska, in terms of population. It ranks behind Anchorage, Juneau, Fairbanks, Sitka, Ketchikan, and Kenai in that order. Anchorage, Juneau & Sitka are unified Home Rule Municipalities (i.e., unified city /boroughs); Fairbanks, Ketchikan, Kenai, and Kodiak are Home Rule Cities. 15 The Kodiak Island Borough ranks eighth in terms of population, in comparison to other boroughs and unified municipalities. It follows Anchorage, Fairbanks North Star Borough, Matanuska - Susitna Borough, Kenai Peninsula Borough, Juneau City and Borough, Bethel Census Area and Ketchikan Gateway Borough, in that order. Fairbanks, Mat -Su, and Kodiak are 2nd class boroughs; the rest -- as mentioned above -- are Unified Home Rule Municipalities. The median age in the Kodiak Island Borough is 31.6 years. Approximately 32.4% of the population is under 18 years of age, about 1% higher than Alaska overall. Fifty -three percent of the population is male and 47% female. Approximately 18.7% of the Borough's adults, age 25 and older, hold at least a bachelor's degree. The number of adults, 25 years and older, estimated to have at least a high school diploma is 85.3 percent. The Kodiak Island Borough appears to be experiencing a slow- but -long -term shift in racial and ethnic distribution. The 2000 Census Bureau shows a significant increase in both the "Asian /Pacific Islander" and "Hispanic Origin" categories. In 1990, 11.6 percent of the population belonged to the "Asian /Pacific Islander" group. By 2000, this group increased to 17 percent. Conversely, the proportion of "Whites" dropped from 71 percent in 1990 to 59 percent in 2000. The "Native American" and "African American" groups saw very small changes, on the order of 1- percent. The 2000 Census included an additional category to determine race - "two or more races." Asian 8 Pacific Islander 12% Native American 16% 11111111000 Revised 1st quarter 2005 Ethnic Distribution - Kodiak Island Borough Racial Composition Kodiak Island Borough - 1990 African American 1% White 71% Native American 15% Source: Alaska Department of Labor African American Asian a 1% Pacific Islander 17% Racial Composition Kodiak Island Borough - 2000 Other 5% Two or more races 5% allll11111 11111111 1 1000 16 White 59% Under the Census Bureau's classification system, "Hispanic Origin" is not a separate race, but a measure of "ethnicity." People of "Hispanic Origin" can belong to any race. As a result, this group is measured separately. According to the Department of Labor, the number of people of "Hispanic Origin" in Kodiak increased slightly during the last ten years, going from 5 percent to 6.1 percent of the population. LABOR FORCE EMPLOYMENT 10% — 8% — 6% — 4% — 2% — 0% Hispanic Origin 5% 6.% 1990 2000 Source: Alaska De.artment of Labor Because of the State of Alaska's method of collecting employment data, it is difficult to determine the exact size of the Kodiak Island Borough work force. The Alaska Department of Labor's main source of employment data is the state's unemployment insurance program, collected through Employment Security Contributions (ESC). Self- employed workers (fishermen) and Coast Guard employees do not participate in this program, so data is not collected for these two sectors. In 2003, the state estimated the borough's average monthly employment to be 5,240, excluding fish harvesting and Coast Guard. (This figure more accurately depicts the number of full and part- time jobs as opposed to the number of actual workers. Workers who switch jobs or hold more than one job may be counted more than once.) The U.S. Coast Guard and other government entities is the dominant industry, in terms of omnlnvmont with 3RD/ of the. tntal Tha coofnnri inrinctnr (inrinrioc feh han,aetinn e.nd se af oo d processing) is the next largest employment sector, with 25 %. Retail trade /transportation /utilities accounted for about 12 %, financial /information /professional & business 6 %, education /health 5 %, leisure & hospitality 7 %, natural resources /construction 4% and other services 5 %. Kodiak's employment varies throughout the year due to the seasonal nature of the fishing industry. Employment usually peaks during the months of July, August and September when fish Revised 1st quarter 2005 1 harvesting is busiest, and declines in November and December as yearly fishing quotas are reached. For this reason, Kodiak is characterized by large swings in its monthly unemployment rate throughout the year, from as low as 5.5% to as high as 16.5. The average annual unemployment rate for the Kodiak Island Borough in 2004 was 9.7 %. Based on the number of commercial fishing permits held by Kodiak residents and accepted crew ratios, annual commercial fishing employment is estimated to be 650. Additionally, the U.S. Coast Guard directly employs approximately 1,300 (military, civilian, private contractor personnel). Therefore, total employment for the Kodiak Island Borough is estimated to be 7,190. Em • to ment b indust sectors - 2003 Revised 1st quarter 2005 # People Ave. Wage Natural Resources 90 58,303 Construction 183 53,777 Total Manufacturing 1,153 36,074 Seafood Processing 1,147 36,211 Trade, Trans., Util. 826 26,970 Transportation 222 24,479 Retail 517 23,160 Financial Activities 187 36,117 Information 70 26,223 Professional & Business 178 30,831 Education & Health 373 36,037 Leisure & Hospitality 502 14,204 Other Services 380 22,841 Govemment 1,303 36,355 Federat 233 52,067 State 258 40,997 Local 812 30,372 Total: 5,240 $32,389 1 8 Kodiak Island Borough Monthly Bnployment Trends January 1999 to Decem ber 2004 8000 7000 ft woo m 5000 a. - 4000 o 3000 E 2000 z 1000 0 A _ w --- �� ®wak Fnpbyed - - - - 12 Month Average Unemployed el W IT 0 0 0 N N 04 M M el V V V S W W 8 O 8 8 8 O 8 8 8 O 8 8 8 8 8 - 01 01 N N N N 01 04 N 01 N N 04 01 N tar a 1Zf a r a at B W Z YZ W B at source: Alaska Deoartment of Labor harvesting is busiest, and declines in November and December as yearly fishing quotas are reached. For this reason, Kodiak is characterized by large swings in its monthly unemployment rate throughout the year, from as low as 5.5% to as high as 16.5. The average annual unemployment rate for the Kodiak Island Borough in 2004 was 9.7 %. Based on the number of commercial fishing permits held by Kodiak residents and accepted crew ratios, annual commercial fishing employment is estimated to be 650. Additionally, the U.S. Coast Guard directly employs approximately 1,300 (military, civilian, private contractor personnel). Therefore, total employment for the Kodiak Island Borough is estimated to be 7,190. Em • to ment b indust sectors - 2003 Revised 1st quarter 2005 # People Ave. Wage Natural Resources 90 58,303 Construction 183 53,777 Total Manufacturing 1,153 36,074 Seafood Processing 1,147 36,211 Trade, Trans., Util. 826 26,970 Transportation 222 24,479 Retail 517 23,160 Financial Activities 187 36,117 Information 70 26,223 Professional & Business 178 30,831 Education & Health 373 36,037 Leisure & Hospitality 502 14,204 Other Services 380 22,841 Govemment 1,303 36,355 Federat 233 52,067 State 258 40,997 Local 812 30,372 Total: 5,240 $32,389 1 8 The Coast Guard maintains its largest facility in Kodiak. Between the various Coast Guard operating and support commands, there are approximately 1,300 military and civilian personnel (govemment workers) and 1,700 military dependents. The payroll for the uniformed Coast Guard was approximately $50 million in 2003. Coast Guard facility maintenance support and construction contract expenditures total approximately $30 million per year (expenditures vary depending on annual funding and construction contract awards). Uniformed personnel stationed in Kodiak are attached to the following Commands: CGC Storis (WMEC 38) CGC Spar (WLB 206) CGC Alex Haley (WMEC 39) CG Integrated Support Command Kodiak CG Air Station Kodiak Communications Station Kodiak Marine Safety Detachment Kodiak NAVCEN Detachment Kodiak Electronics Support Unit Kodiak Loran Station Kodiak North Pacific Regional Fisheries Training Center CG Investigations Resident Agent Office 17th District Public Affairs Officer, West Revised 1st quarter 2005 19 Kodiak's Top Employers - 2003 Name 2003 Employment 1 Kodiak Island Borough School District 435 2 North Pacific Processors Inc. (APS) 264 3 Trident Seafood Group 200 4 Providence Kodiak Island Medical Center 190 5 City of Kodiak 159 6 Wal -Mart Associates 147 7 Kodiak Area Native Association 132 7 Ocean Beauty Seafoods 132 9 Western Alaska Fisheries 125 10 Homeland Security 123 11 Safeway Inc. 119 12 University of Alaska Anchorage 84 13 Kodiak Inn Inc 82 14 AK Department of Fish and Game 77 15 Brechan Enterprises Inc. 74 15 Global Seafoods 74 15 International Seafoods 74 18 Ki Enterprises (McDonald's) 72 19 Kodiak Electric Association 47 19 AK Fresh Seafood Inc. 47 19 Ben A. Thomas Inc. Alaska Division 47 20 Kodiak Island Housing Authority 43 Excluding the U.S. Coast Guard, here are the top 20 largest employers in the Kodiak Island Borough during 2003: Notes: USCG and commercial fishermen are not included. INCOME In 2003, the Alaska Department of Labor reported the annual average monthly wage for workers L Kodiak Island L q C(l T..4..1 II 2003 $1Crl 7 i'.... I 2003 III lI 1C Kodiak IJIUI Iu Borough was $L,VJJ. Total payroll 111 LVVJ was 41IVJ.1 million. I. 111 GVVJ Kodiak's annual average wage was $32,388 compared to a statewide average of $37,344. Revised 1st quarter 2005 2 0 3500 3000 2500 2000 1500 1000 500 0 COST OF LIVING 150 - 140 - 130 - 120 - 110 - 100 - 90 - 80 Annual Average Monthly Earnings - 2003 Statewide Anchorage Fairbanks Kodiak Bethel Source: Alaska Dept. of Labor does not include Coast Guard or fish harvesting Several studies exist for the purpose of comparing the cost of living between cities in Alaska and around the country. Because of differences in methodologies used to determine cost of living statistics, each survey shows a different result when comparing costs between locations. 130.8 Comparative Cost of Living 3rd Quarter 2004 ACCRA Survey 122.5 128.4 134.5 100 Kodiak Anchorage Fairbanks Juneau Nat'l Ave. In the American Chamber of Commerce Researchers Association (ACCRA) cost of living study, a standardized list of 59 items is priced during a fixed period of time. The average price data for each reporting city is then converted into an index number which is used for comparative purposes. The data compares approximately 300 urban areas. It does not take into account local tax burden or income levels, and is only intended as a comparison of prices relative to a national average. Four Alaskan cities are included in the most recently published ACCRA study: Anchorage, Juneau, Fairbanks, and Kodiak. Revised 1st quarter 2005 21 RETAIL SALES Total retail sales within the city have increased more than 54% since 1993. There is a close correlation between retail sales and the strength of local fisheries. In 1995, after a record - breaking salmon season, retail sales climbed 9 %. In the second half of 1996, when the salmon harvest dropped and fish prices fell, retail sales went down approximately 10- to -12 %. Retail sales have increased significantly since the opening of a local Wal -Mart store in the spring of 1999. $105,000,000 $90,000,000 $75,000,000 $60,000,000 $45,000,000 $30,000,000 $15,000,000 So 111111111111 I 1 11111111111111 11111111111111 y . W' "' `0 `a f.- '� CO °° 0) a' e o r r M "' CO CO V vs O' e' 0) o' 0) 0• 0) 0) 0) a 0) co 0 0 memo 0 0 0 0 Cr Q D a D Q 0 a C a S w P o D o D Q Cr o S er m 9 Iro 9 T 9 ; P ins ? w t a 9 o 2 a ? g 9 les 2 I M M H' H) N) 1- M 1 " M I" M I en . M BANK DEPOSITS Total bank deposits have increased by 82% over the 17 -year period from 1987 to 2004. There was a major jump in 1989 as a result of payroll and supply purchases related to the ExxonNaldez oil spill cleanup. The deposits shown do not include funds at Credit Union 1, which has a branch office in downtown Kodiak. All data is gathered through a voluntary reporting program on June 30 of each year. $140,000,000 $130,000,000 $120,000,000 $110,000,000 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 1 1 N- CO 0) 0 r N CO R N (0 t` CO 0) 0 N t h 0 0) 0) 0 0 0 0) 0 0) 0) 0) 0) 0 ) 0 0 0 0 0 0 0 N N N N N Source: Kodiak Island Borough Finance Department Revised 1st quarter 2005 City of Kodiak Total Sales Receipts 1st quarter 1994 to 4th quarter 2004 Bank Deposits - Kodiak Island Borough 1987 -2004 — quarterly receipts — 4 quarter average 22 Seafood Industry Kodiak is the center of fishing activities for the Gulf of Alaska. Its fishery is among the most diverse in the state. Residents participate in at least 27 different fisheries not including the numerous groundfish fisheries, which are lumped together in a single category by the Commercial Fisheries Entry Commission. In addition to being quite diverse, Kodiak's fishing industry is also one of its oldest, dating back to the early 1800s when the Russians built the first salmon cannery in Karluk. Kodiak is consistently one of the top three fishing ports in the United States. The 2003 ex- vessel value of all fish coming into Kodiak was $82.9 million, up from $62.1 million in 2002, and volume in 2003 was 274.4 million pounds, up from 252.5 million pounds the year before. 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 Commercial Seafood Harvest Value & Volume Port of Kodiak 1990 - 2003 Source: At Dept. of Fish and Game o r r CI a n a 0 0 r M 0) W of 0) m a m 01 W 0 0 0 0 0 0) a of 0 w 0) m a) m 0 0 0 0 0 Salmon has traditionally been the mainstay of Kodiak's fisheries. Because of the cyclic nature of the salmon fisheries -- especially pink salmon -- the volume and value of Kodiak's salmon catch varies greatly. Increased competition in world markets has also driven prices to new lows. In 1997, the exvessel value of Kodiak's salmon harvest was $18.8 million compared to $25 million in 1996 and $53 million in 1995. The ex- vessel value of salmon in 2003 was $17.9 million, up from $13.3 million harvested in 2002. Revised 1st quarter 2005 2 3 Fish Landed at the Port of Kodiak 2003 Species Pounds a Exvessel Value Bearing Sea Snow Crab N/A N/A Dungeness Crab 472,573 704,134 Bristol Bay Red King Crab 879,269 4,712,882 Other Crab 540,173 1,299,915 Weathervane Scallops N/A N/A Sea Cucumbers 153,903 210,847 Misc. (shrimp, sea urchins) 118,493 51,764 Octopus 64,875 27,896 Halibut * 7,891,904 22,407,370 Pacific Cod 52,935,977 16,410,153 Sabelfish 2,405,403 8,034,046 Pollock 73,136,066 6,582,246 Flatfish r 14,264,333 747,899 Flathead Sole 2,798,544 251,869 Pacific Ocean Perch 11,507,301 575,365 Rockfish 10,982,826 700,627 Rock Sole 8,123,946 1,137,352 Black Rockfish 83,854 31,865 Salmon 83,646,938 17,890,468 Herring 4,361,882 1,086,270 TOTAL 274,368,260 82,910,951 During recent years, the groundfish fishery (primarily pollock and cod) has become increasingly important to Kodiak's economy. From 1986 through 2003, the wholesale value of this fishery increased from $23.5 million to more than $34 million. In addition to the fish harvesting and processing sectors, there are also several government and educational , i__tiuti-n_ that t_ uuwu�iia t � mau alai operate 11511 ICACaI(al facitllies in Kodiak. The National Marine Fisheries Service Utilization and Research Division, along with the University of Alaska's Fisheries Industrial Technology Center, provide lab services, quality and handling studies, product development assistance and other research efforts. The University of Alaska Marine Advisory Program also has a field office in Kodiak. The Kodiak Fisheries Research Center, owned and operated by the Kodiak Island Borough, is a world -class research institute, open to both state and federal researchers. Revised 1st quarter 2005 Source: Alaska Department of Fish and Game Table Key a represents lbs. of product landed at the port of Kodiak including harvests outside of the Kodiak management area (from Fish Ticket data) f Includes the following species: butter sole, yellowfm sole, starry flounder, Alaska plaice and Greenland turbot g Includes the following rockfish species: northern, thomyhead, yelloweye, rougheye, shortraker, and dusky rockfish * Halibut poundage from NMFS website: http: / /www.fakr.noaa.gov /ram /ifgreports.htm includes all landings in Kodiak regardless of where the fish were harvested 24 VISITOR INDUSTRY Tourism, like many other Kodiak industries, is based on our natural resources Tourists come to Kodiak to view the scenic beauty, hike, camp, visit historical and cultural sites, view and photograph wildlife, and hunt and fish. The visitor industry in Kodiak has remained relatively steady for the past five years. As is true elsewhere in Alaska, Kodiak's visitor industry is seasonal, with approximately 76% of all visitors arriving during the summer months. The total number of visitors to Kodiak is approximately 30,000 (includes intra -state visitors). Kodiak's share of the Southwest Alaska visitor market is approximately 31% year round. According to the Alaska Visitor Statistics Program, visitors to Kodiak and other Southwest Alaska destinations tend to stay longer than the average visitor to the state, and are significantly more likely to be repeat visitors. Additionally, visitors to Southwest Alaska typically spend more than twice as much as the average visitor to other regions in Alaska According to the Alaska Visitor Arrivals and Profile Summer 2001 study, the average per person /per trip expenditures by visitors to Alaska during summer 2001 was $1,258. The majority was spent on tours and recreation. City and Kodiak Island Borough Room Tax and Visitor Spending Year City Room Percent Change Total Yearly Visitor Tax Collected Spending (estimate) 1991 $ 80,007 -15.1% $10,151,710 1992 $ 79,293 - 0.89% $10,089,374 1993 $ 78,542 -0.95% $10,055,084 1994 $ 89,237 +13.6% $10,551,637 1995 $ 94,982 +6.4 $12,177,199 1996 $ 83,911 -11.7% $10,757,856 1997 $ 96,259 +14.7% $12,321,152 1998 $141,064* +31.8% $17,632,996 1999 $153,296* +8.7% $19,162,000 2000 $153,073* -.01% $19,134,125 2001 $156,795* +2.4% $19,599,375 2002 $153,052* -2.4% $19,131,500 2003 $143,160* -6.9% $17,895,000 2004 $173,384* +21.1% $21,673,000 Source' Kodiak Island Convention & Visitors Bureau TIMBER INDUSTRY includes Borough room tax collected The forest products industry has been an important segment of the Kodiak economy. The Sitka ♦ J the Borough ♦ ♦ . J from iri tiai the spruce forested area of uie ouiuuyn continues w expand corn its moral occurrence on e northern islands toward both the South and West. Due to the nature of the relatively young emerging stands, the initial open -grown trees have less natural pruning and subsequently exhibit more knots than would similar trees in mature stands or second growth stands with higher volumes per acre. The stands now in place are relatively short in comparison to the more highly developed stands of Southeast Alaska -130 feet as compared to 200 feet in total height. Second growth stands that develop with natural regeneration following clear- cutting will produce more Revised 1st quarter 2005 25 Year Timber Industry Gross Production Timber Severance Taxes Collected 1992 $23.5 million $126,374 1993 $48.8 million $261,590 1994 $40.1 million $242,324 1995 $44.1 million $347,424 1996 $38.5 million $247,020 1997 $42.3 million $272,035 1998 $19.4 million $179,401 1999 $10.3 million $ 95,690 2000 $9.9 million $112,822 2001 $6.1 million $56,019 2002 N /A* $46,007 2003 N /A* $57,590 2004 N /A* $46,753 recoverable volume per acre and higher sawlog grades in a shorter period of time than the present stands contain. Approximately two- thirds of the timber recovered from the existing stands is grade 2 or better sawlog material while the remainder is grades 3 and 4 sawlogs. Currently, the quantity of timber harvested within the Kodiak Island Borough produces a total direct revenue (not including economic multipliers or secondary business impacts) of $6.1 million. During 2002, the harvesters of this private timber paid a severance tax of $46,007 to the Kodiak Island Borough. Two forest products companies operate within the Kodiak Island Borough, one of which has decreased production dramatically. The reason for the decrease in production is due to the decreased prices in Asia for our timber. * figure not available - less than 3 companies reporting AEROSPACE INDUSTRY The mission of the Alaska Aerospace Development Corporation (AADC) includes establishing and operating, in Alaska, a launch facility promoting aerospace - related economic growth and developing corresponding technologies and support services. The Kodiak Launch Complex (KLC) is the nation's first launch facility not located on federal property and is positioned to meet the challenges and define Alaska's future role in a highly competitive launch industry. The KLC celebrated its first mission November 15, 1998. Orbital Sciences Corporation launched a sub - orbital vehicle for the US Air Force called "ait -1." The second i..l l ita - fro KLC lifted off su�w�ol�� iauiwi� n�n� nw lifted un SeNieiiiuer 15, 1999. The US Air Force atmospheric interceptor technology (ait -2) rocket launched into sub - orbital flight along the West Coast of North America. The US Air Force had developed a program to launch rockets on sub - orbital flights in support of Department of Defense operations. The Quick Reaction Launch Vehicle (QRLV) program made its initial launch from KLC in March 2001. The Kodiak STAR, the first planned orbital launch from the KLC lifted off on September 29, 2001. This launch was a NASA collaborative mission with the Revised 1st quarter 2005 2 6 Department of Defense. The payload consisted of four small satellites launched aboard a Lockheed Martin Athena I launch vehicle. The Strategic Targets Product Office (STOP) launched the Ballistic Missile Defense Organization, Strategic Target System (STARS) from the KLC on November 9, 2001. STARS was designed to deploy a multiple object payload suite in support of sensors that may be used in the U.S. missile defense system. This STARS mission was designated as the West Coast Risk Reduction Flight (WCRRF). WCRRF was designed to be launched from Kodiak and fly along a trajectory at a safe distance off the west coast of the Continental United States to a broad ocean area impact southwest of California. The WCRRF trajectory provides unique test opportunities for missile defense system sensors. According to the Institute of Social and Economic Research (ISER), University of Alaska Anchorage, the economic impact of the September 2001 launch on the Kodiak Island Borough and the state of Alaska was an estimated $4.2 million in sales and $2.6 million in payroll. It created the equivalent of 85 year -round jobs. That effect was felt about equally on Kodiak Island and in Anchorage. These estimates include both the direct effects of the launch and the additional effects of respending within Alaska. ISER estimated that people visiting Kodiak to work on the launch spent an additional $92,000 for recreational and personal expenses. INTERNATIONAL TRADE The Kodiak Island Borough is a major exporter of seafood and timber. Nevertheless, it is very difficult to obtain accurate numbers on the value of exports originating in Kodiak because very little product is exported directly from Kodiak. Most exports go first to another Alaskan or Lower -48 port, and therefore appear in those export figures. If one assumes that roughly 70% of Alaskan seafood is exported (export value of $1.4 billion divided by a total wholesale value of $1.9 billion), then Kodiak probably exports about $100 million in seafood products (wholesale value of $143 - million times 0.7. In 1998 the U.S. Foreign Trade Zones Board approved the Kodiak Island Borough's application for a Foreign Trade Zone (FTZ). The zone will primarily serve Alaska Aerospace Development Corporation's Kodiak Launch Complex, but will also open up many new trade and business opportunities for Kodiak Island. In November 2004 the U.S. Department of Commerce and their Foreign -Trade Zones Board approved the application for the activation of Kodiak Foreign -Trade Zone No. 232, the first facilities to receive designation in Southwest Alaska. AIRPORT OPERATIONS Kodiak State Airport is located approximately four miles southwest of downtown Kodiak. The airport supports air carrier service for Kodiak in addition to serving as a regional hub for several outlying communities. The airport is owned by the U.S. Coast Guard, but leased to the State of Alaska. The Alaska Dept. of Transportation and Public Facilities operates and maintains all public and operational areas. Kodiak State Airport has three active runways, all with separate instrument approaches. The longest runway (7 -25 at 7,548') is the primary air carrier runway. It has an instrument landing system /distance measuring equipment (ILS /DME) approach. SERCO Management Services Inc., under Revised 1st quarter 2005 27 the auspices of the Federal Aviation Administration, operates an air traffic control tower at the airport 15 hours per day. CONSTRUCTION INDUSTRY The construction industry is an important part of Kodiak's economy. Several large construction projects were completed during the last five years, including a new hospital and 35 new units of senior, disabled and low- income housing, the Kodiak Launch Complex, the Kodiak Fisheries Research Center, Wal -Mart, Blockbusters, an ongoing Coast Guard housing project, and several new residential subdivisions. 250 - 200 - 150 100 50 0 W 0) 0 N CO 7 in CO CO 0 CO CO 0) D) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0) 0 0) 0) 0) Source: Kodiak Island Borough Number of Building Permits 1988 - 2004 CV CO et 0 0 O O O N N N N N t Commercial t Residential —a— Total 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 o ro $ Of w Of Source: Kodiak Island Borough Dollar Value of Building Permits 1988 -2004 a a '0 o) Si &) $ —4'— Commercial f Residential —*— Total N fl a o 0 0 0 Revised 1st quarter 2005 2 8 CONTACT INFORMATION For additional community information contact: Kodiak Chamber of Commerce 100 East Marine Way, Suite 300 Kodiak, Alaska 99615 (907) 486-5557 Fax: (907) 486 -7605 chamber @kodiak.orq www.kodiak.orq Kodiak Island Convention and Visitors Bureau 100 East Marine Way, Suite 200 Kodiak, Alaska 99615 (907) 486-4782 Fax (907) 486 -6545 kicvb @ptialaska.net www.kodiak.orq City of Kodiak P.O. Box 1397 Kodiak, AK 99615 (907) 486 -8636 Fax: (907) 486 -8600 Ask @ci ty.kodiak.ak.us www.city.kodiak.ak.us Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 (907) 486-5736 Fax: (907) 486 -9374 info @kib.co.kodiak.ak www.kib.co.kodiak.ak.us Revised 1st quarter 2005 29