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FY2008-36 Agreement Between the Kodiak Island Borough and the Kodiak Chamber of Commerce For Economic Planning and Project Development within the Kodiak Island Borough For FY2009. ~~NO.t-'Y~3(p ECONOMIC DEVELOPMENT PROGRAM AGREEMENT THIS AGREEMENT is entered into by and between the Kodiak Island Borough, Alaska (Borough) and the Kodiak Chamber of Commerce (contractor) for the purpose of setting forth the terms and conditions pursuant to which the contractor shall be contracted to provide economic development activities. Section 1. INTENT OF AGREEMENT. The contractor is hereby contracted to provide an economic development committee and staff to focus on economic development planning and project development in the Kodiak Island Borough. Section 2. SCOPE OF WORK. The contractor will provide staff who will serve on the economic development committee drawn from the Kodiak Island community with representatives from the City of Kodiak, Kodiak Island Borough, Kodiak Island outlying communities, and with the Kodiak Chamber of Commerce. Staff will work with the Committee to accomplish the following tasks identified in the document, such as: a. Actively pursue business opportunities created by the completion of the Kodiak-Kenai Cable Company, LLC fiber optics project. b. Work with the Kodiak Branding and Marketing Committee in their efforts to develop and implement a marketing plan and quality assurance program for Kodiak seafood. c. Continue to facilitate the Kodiak Fisheries Advisory Council and forward recommendations on to the Borough Assembly. d. Work with the National Marine Fisheries Service, University of Alaska Fishery Industrial Technology Center, and local processors to achieve stability and diversification in the fish proce,ssing industry by encouraging secondary and value-added processing, harvesting of under-utilized species, and by maximizing by-product utilization. e. Work with the Kodiak Island Convention and Visitors Bureau to transform the visitor industry into a significant component of the Kodiak Region's economy. Provide results of data to the business community on the project that measures visitor satisfaction of travelers exiting Kodiak Island via the Alaska Marine Highway System. f. Participate on the Kodiak College Advisory Council fostering their goals to provide higher education options and opportunities for Alaskans. g. Work with Kodiak College, the Kodiak Island Borough School District, Kodiak Area Native Association, and other organizations to encourage entrepreneurship and assist small business development h. Continued participation and involvement with Southwest Alaska Municipal Conference in their efforts to bring economic stability to the region. 1. Work with educational institutions, public funding entities and industry to develop a comprehensive economically sustainable fisheries research facility in Kodiak; J. Explore new employment and business opportunities related to the Kodiak Launch Complex; k. Explore ways of enhancing Kodiak's position as a regional transportation hub. 1. Assist in the economic development of Kodiak Region outlying communities. A minimum of four Comprehensive Economic Development Strategy committee meetings will be scheduled during the term of this Agreement for the purpose of maintaining committee input and guiding the efforts ofthe contractor. A report of all activities of the contractor will be submitted to the Borough Manager following each meeting. Section 3. TERM. This agreement will remain in effect July 1, 2008 through June 30, 2009, unless earlier terminated. Either party shall have the right to terminate the agreement without penalty upon one month's written notice to the other. Section 4. COMPENSATION. As compensation for all services rendered under this agreement, contractor shall be paid $43,000.00 by the Kodiak Island Borough. Said compensation shall be paid in equal installments of $10,750.00 on the second Friday of July and October 2008, and January and Apri12009. IN WITNESS WHEREOF the parties have executed this Agreement on this of June 2008. (~ay KODIAK ISLAND BOROUGH Attest: ~r~ KODIAK CHAMBER OF COMMERCE .~~~ Debora King, Executive irector KODIAK CHAMBER OF COMMERCE - - 100 E. Marine Way, Suite 300, Kodiak Alaska 99615 · (907) 486-5557 · FAX: (907) 486-7605 www.kodiak.org · Email: chamber@kodiak.org April 1, 2008 f5) ~ ~ ~ I ,Y ~ ~ ~ APR 1 4 2008 IJj Rick Gifford, Manager Kodiak Island Borough PO Box 1397 Kodiak, AK 99615 KIB MANAGER Dear Rick, Please consider this letter a request for renewal of the contract between the Kodiak Island Borough and the Kodiak Chamber of Commerce for provision of economic development services for fiscal 2009 in the amount of$43,000 per annum. Economic Development Specialist activities - fiscal 2008: · Facilitator of the Kodiak Fisheries Advisory Committee, whose mission is to assist the City and Borough with fisheries related issues. The committee has forwarded several Draft Resolutions to both local governments. It has also given valuable feedback to local representatives of the North Pacific Fisheries Management Council. · Administration of the Alaska Fisheries Marketing Board, Kodiak Island Borough, and Department of Community and Economic Development grants that provide funds for the Kodiak Branding and Marketing Committee to develop and implement a seafood quality assurance program and alternative markets for Kodiak seafood. · Held a Small Business Workshop for entrepreneurs interested in starting a business in the Kodiak Island Borough. · Provide direct assistance to local residents interested in starting a business in Kodiak. · Provision of economic data to local agencies and groups in their efforts to secure grant funding. · Organized quarterly meetings of the Community Economic Development Committee. · Provision of training services to outlying communities - participated in the final meeting to formulate a Community Plan for Ouzinkie and reviewed the draft plan before it was finalized. · Gave a presentation at the Southwest Alaska Municipal Conference as part of a fisheries marketing panel. Dedicated to Kodiak's Economic Future . Facilitated a number of retailer meetings that discussed ways to increase local shopping. The Chamber of Commerce took their suggestions and started the Gold Card promotion. . Participated in two Rural Regional Leadership Forums sponsored by Kodiak Island Housing Authority. It has been a pleasure working with the Kodiak Island Borough in our joint efforts to foster economic growth and development of our community. We look forward to continuing the efforts to promote Kodiak and its growing economy. j~DWJ John Whiddon President Kodiak Chamber of Commerce ECONOMIC DEVELOPMENT SPECIALIST ANNUAL REPORT Kodiak Island Borough May 15, 2008 Comprehensive Economic Development Strateav (CEDS): Each year the CEDS document is updated and reviewed by the CEDS Committee. Once the resolutions are received from the City of Kodiak, Kodiak Island Borough and Kodiak Chamber of Commerce the updated document will be forwarded to US Dept of Commerce EDA. In order for communities to receive federal funding, they are required to include their Capital Improvements Projects list in the CEDS. The Chamber continues to host quarterly CEDS committee meetings. The last CEDS meeting was held in conjunction with the Rural Leadership Forum and we had approximately 30 representatives from the rural communities in attendance. Our most recent topics of discussion included Fuel Cooperatives, Rockfish pilot program, and community planning. Kodiak.ora Website Revision - Plans are underway for a major revision to the kodiak.org website. Consideration is being given to provide web advertising opportunities to members of both the Chamber and the Kodiak Island Convention and Visitors Bureau. Since January 2008 we are averaging over 2000 visits per day to the website. Southwest Alaska Municipal Conference: Deb King continues to serve on the Southwest Alaska Municipal Conference (SWAMC) board of directors. The staff, in conjunction with Northern Economics, has completed the Seafood Harvesting Labor Data Project. The project is designed to develop a 5- year database of seafood harvesting labor data for state and federal waters. Future projects include the Southwest Alaska Rural Energy Project, Project for Environmental Preservation in Southwest Alaska, and Seafood Supply Chain Analysis. I gave a presentation at the SWAMC annual conference that focused on regional seafood marketing. Kodiak Brandina and Marketina Committee: Work continues with the Kodiak Branding and Marketing Committee and the "Star of Kodiak" Quality Assurance Program. We received funding from the Alaska Fisheries Marketing Board and from the Kodiak Island Borough to continue the program. The Star of Kodiak video produced by Kodiak Resource Development has been used to promote the program and Kodiak wild salmon at numerous events. Last summer the program sponsored the 1st Salmon of the Season Celebration, a reception for a film crew from China, and attended the Global Food Alaska Expo in Soldotna. Recent Star of Kodiak events include Bill Barker's educational tour of the upper Midwest and sending a delegation to a meeting of the food purchasers of Casinos in the Pacific Northwest. The committee is currently working on a Salmon Celebration in the Pacific Northwest that will focus on the sustainability of Kodiak's fisheries. Small Business Workshop: On April 21-23 I held a small business workshop with support from Kodiak College. The workshop received very favorable reviews from the 12 participants in attendance. Some of the topics covered included writing a business plan, financing your business, city sales tax, advertising, and small business accounting. We look forward to offering this workshop every two to three years to help foster the entrepreneurial spirit in Kodiak. Retail Meetinas: Since last July I have held approximately 10 meetings with local retailers. From these meetings we instituted a shop local campaign. The highlight of the campaign was the Kodiak Gold Card, which a customer purchases and is then eligible for discounts. We currently have over 30 businesses participating in the program. Comfish Committee: I have attended a number of Comfish Committee meetings. The event has experienced lower participation from businesses, fishermen and the general public over the past number of years. The committee is tasked with finding ways to make the event more relevant to the needs of today's fishermen and become break-even at the same time. Kodiak Colleae Advisory Council: Deb King continues to participate as the president of the Kodiak College Local Advisory Council, which meets on a monthly basis. The Local Advisory Council participated in the development of the College Facilities Master Plan, Showcase for Excellence and Commencement. Input from the group helps shape the focus and strategy of the College. Kodiak Fisheries Advisory Committee: I have facilitated 12 meetings of the Kodiak Fisheries Advisory Committee, a joint committee of the City of Kodiak and Kodiak Island Borough. The committee is made up of 18 appointed seats from all sectors of the fishing fleet and local community. The committee discusses issues facing the fisheries and possible effects they may have on the community. Over the past year the committee has forwarded draft resolutions on the need for a labor database for crewmen, a resolution urging crewmen be included in the NPFMC BSAI Crab discussions, and are currently working on a resolution asking for federal funding of the observer program. The committee continues to be a valuable venue for the exchange of information and ideas between the different sectors of Kodiak's fishing community. CHANGES IN THE AREA ECONOMY SEAFOOD (2007 Data Available in late June) 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 Commercial Seafood Harvest Value & Volume Port of Kodiak 1990 - 2006 I-+- Totallbs. (mil.) -- Total $ (mil.) I A.. .. /~\ /~.. .-' .... \ "II V ....-. K ~-/ a: ;; 0) 0) ... ... N 0) 0) ... .., 0) 0) ... ~ ~ ~ ~ ~ 0) Q 0) 0) 0) 0) 0) 0) Q 0) 0) 0) 0) 0) 0) Q r r r r ~ ~ N ... N Q Q Q Q N N .., ~ Q Q Q Q N N ~ Q Q N ~ Q Q N Kodiak is consistently one of the top three fishing ports in the United States. The 2006 ex-vessel value of all fish coming into Kodiak was $106.2 million, up from $95.2 million in 2005, and volume in 2006 was 380.9 million pounds, up from 366.3 million pounds the year before. Although whitefish prices are very strong on the world market and the weak dollar has made our products very competitive overseas the rising costs of fuel may nullify any benefit the local fleet would have seen from the increases. 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. EMPLOYMENT Kodiak's average annual unemployment rate in 2007 decreased to 6.0% from 7.7% reported in 2006. The average number of jobs increased from 5712 to 5816 in 2007 and the size of the active work force increased to 6190 from 6167 in 2006. The unemployment rates for 2007 went from a low of 4.6% in August to a high of 9.4 % during December. These wide fluctuations in employment continue to be a challenge for the community. Kodiak's Top Employers - 2007 Name Employment 1 KODIAK IS BORO SCHOOL DIST 462 2 FEDERAL GOVERNMENT * 342 3 INTL SEAFOODS OF AK INC 251 4 TRIDENT SEAFOODS 250 CORPORA TION 5 OCEAN BEAUTY SEAFOODS 222 6 PROVIDENCE HOSPITAL 218 7 NORTH PACIFIC SEAFOODS INC 217 8 STATE GOVERNMENT 194 9 KODIAK CITY OF 159 10 SAFEWAY INC 139 11 WAL-MART ASSOCIATES INC 126 12 KODIAK AREA NATIVE ASSOC 119 13 GLOBAL SEAFOODS NORTH 102 AMERICA LLC 14 UNITED STATES SEAFOODS 81 15 UNIVERSITY OF ALASKA 79 16 MC DONALD'S 60 17 KODIAK SUPPORT SERVICES 59 18 ICICLE SEAFOODS INC 52 19 BRECHAN ENTERPRISES INC 51 20 KODIAK INN INC 47 20 ISLAND FISH CO LLC 47 * The large gain in Federal Employees is due to under reporting by the state in previous years of Federal Employees on the Coast Guard base. Notes: USCG Personnel 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. Comparative Cost of Living 1st Quarter 2008 ACCRA Survey 150 140 130 120 110 100 90 80 133.3 100 Kodiak Anchorage Fairbanks Juneau Nat'l Ave. (Juneau did not report 1st quarter data) In the American Chamber of Commerce Researchers Association (ACCRA) cost of living study, a standardized list of 58 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. Three Alaskan cities are included in the most recently published ACCRA study: Anchorage, Fairbanks, and Kodiak. Juneau has reported sporadically over the years, but didn't report last quarter. POPULA TION According to the Alaska Department of Labor, the estimated 2007 population of the Kodiak Island Borough is 13,568, going up slightly from the estimated 2006 population of 13,506. Population has remained virtually steady since 1997 when the estimated population was 13,648. Kodiak Island Borough Population 1987 - 2007 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 o ~~~~~~~~~~~~~~~~~~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Source: AK Dept of Cornnmity & Ei::onorric Development - - I-- - - - - I-- - - - - I-- - - - - I-- - - - I-- - - - - - - -r , . . . . School population has remained virtually steady over the last 2 years (2650) with a slight increase in population in the village schools. BANK DEPOSITS Bank deposits held steady in 2007 at approximately $141 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 different fishing seasons. SALES Gross sales receipts for the City of Kodiak increased by 6.5%, going from just over $362 million in 2006 to over $385 million in 2007. Retail sales to consumers increased going from approximately $142.6 million in 2006 to $152.4 million in 2007 an increase of 6.9%. City of Kodiak Total Sales Receipts 1st quarter 1994 to 4th quarter 2007 - quarterly receipts -4 quarter average $130,000,000 $120,000,000 $110,000,000 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 . II) CD ..... co CJ) 0 .... N M . II) CD ..... CJ) CJ) CJ) CJ) CJ) CJ) 0 0 0 0 0 0 0 0 ... ... ... ... ... ... .b ... .b ... ... .b ... ... - - - - - - - - - - - D" D" D" D" D" D" D" D" D" D" D" D" D" D" - - - - - - - - - - - - - - III III III III III III III III III III III III III III .... .... .... .... .... .... .... .... .... .... .... .... .... .... 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 FY2008 is $836,447,789 an increase of $27,211,387 (3.3%) over FY200Ts value of $809,236,402. KODIAK ISLAND BOROUGH AGENDA STATEMENT June 5, 2008 REGULAR MEETING ITEM NO: 13.A.2 TITLE: Contract No. FY2008-36 Between the Kodiak Island Borough and the Kodiak Chamber of Commerce For Economic Planning and Project Development within the Kodiak Island Borough. SUMMARY: The Kodiak Island Borough has participated in a community-based economic development program operated by the Kodiak Chamber of Commerce for many years. Funding support from the Borough and the City of Kodiak has been used to establish an economic development specialist position at the Chamber. This position ensures that the Kodiak Island Borough is provided with economic development expertise and support. The position is responsible for meeting planning and reporting requirements established by the Federal Economic Development Administration and for supporting the Kodiak Comprehensive Economic Development Strategy (CEDS) Committee. This contract would renew this relationship for the 2009 fiscal year. The duties to be accomplished for this period are outlined in the attached agreement document. FISCAL NOTES: Account No.: 100-160-448-362 Amount Budgeted: $43,000 Expenditure Required: $43,000 APPROVAL FOR AGENDA ~ c!S- RECOMMENDED MOTION: Move to authorize the manager to execute Contract No. FY2008-36 with Kodiak Chamber of Commerce of Kodiak, Alaska in the amount not to exceed $43,000 for FY2009.