Legislature(2011 - 2012)BUTROVICH 205
04/12/2011 03:00 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB197 | |
| HJR27 | |
| HJR17 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HJR 17 | TELECONFERENCED | |
| + | HB 197 | TELECONFERENCED | |
| + | HJR 27 | TELECONFERENCED | |
HJR 27-RELOCATE COASTAL VILLAGES REGION FUND
3:19:01 PM
CHAIR OLSON announced the consideration of HJR 27.
3:19:14 PM
REPRESENTATIVE PAUL SEATON, sponsor of HJR 27, said this
resolution supports "Alaskanizing" the fishing fleet, including
the large vessels that operate in the Bering Sea and within one
of the six Community Development Quota (CDQ) groups. These CDQ
groups were established to give communities along the Bering Sea
access to the fisheries resource. The Coastal Villages Region
Fund (CVRF) is the largest CDQ group with a 341 foot Bering Sea
Pollack trawler, four 100 plus foot crab boats, seven 100 plus
foot ground fish vessels as well as smaller tenders and other
vessels. The homeport for this fleet has been Seattle, but CVRF
made a decision to find a homeport in Alaska. The City of Seward
has what the fleet needs including an ice-free port, upland
space for development, the Alaska Vocational Technical Center
(AVTEC) training facility, and a large vessel lift facility. HJR
27 supports the return of this private industry to Alaska and
hopefully it will bring economic development to from Seward to
Anchorage.
REPRESENTATIVE SEATON noted that the packets contain numerous
expressions of support for the resolution and bringing private
industry jobs to Alaska.
3:22:19 PM
CHAIR OLSON asked why the CVRF initially made the decision to
homeport in Seattle.
REPRESENTATIVE SEATON replied Seattle had long all the necessary
facilities in one place, including road and rail access and
sufficient dock space. In anticipation of becoming the homeport
for the CVRF fleet, Seward did a preliminary analysis to make
sure it had sufficient dock space. In addition, the capital
budget allocates $400,000 to do a more detailed economic study.
CHAIR OLSON asked if he had an idea of what it might cost the
community of Seward to be able to handle these large vessels.
REPRESENTATIVE SEATON replied the detailed facility design will
give the economic analysis.
CHAIR OLSON asked who will maintain this large facility.
REPRESENTATIVE SEATON replied it will probably be the City of
Seward.
3:25:15 PM
CHAIR OLSON asked if the City of Seward would look to the state
for operating capital if it had trouble maintaining the
facility.
REPRESENTATIVE SEATON said he hopes the facility will be built
to a standard such that major maintenance wouldn't be necessary
for 15-20 years.
CHAIR OLSON asked what adverse effects the large vessels and
increased traffic will have on the smaller vessels.
REPRESENTATIVE SEATON replied that shouldn't be a problem; the
large vessels will be located on the east side of the bay across
from Seward. At this point there is no intention to place these
large vessels inside the municipal boat harbor. He added that he
doesn't foresee a traffic problem.
CHAIR OLSON asked if he'd sought comment from the local CDQ
group.
REPRESENTATIVE SEATON answered yes. He offered to provide a copy
of the video presentation CVRF made. This will be a great
economic development for not just Seward but also the Kenai
Peninsula to Anchorage.
CHAIR OLSON asked when the actual move will take place.
REPRESENTATIVE SEATON replied 2014 is the timeline.
3:27:38 PM
SENATOR WAGONER asked how much of its own money the CDQ will
invest and if that would be enough to ensure that CVRF will stay
in Seward.
REPRENTATIVE SEATON replied that's a question for the CDQ but
there has been talk about contractual obligations to use the
facilities over time.
3:28:43 PM
PHILLIP OATES, Manager, City of Seward, informed the committee
that the CDQ groups were formed as a result of the Magnuson-
Stevens Act. The vision in the '70s was first to Americanize the
foreign-dominated fishing fleets. Second, it was to give some of
the fishing quota to the communities that surround the prime
fishing areas of the Bering Sea. Third, it was to allow those
communities and development groups to reinvest their earnings
into the fishing industry through training and education.
Finally, the vision was to "Alaskanize" the fishing fleets. That
is the current focus.
Responding to the question about why the CVRF vessels have been
homeported in Seattle, he explained that the location of the
homeport is an owner's decision and the CDQ groups initially
didn't own their vessels. The Coastal Villages Region Fund is
the most successful of the six CDQ groups in terms of vessel
ownership and as owner they made the decision to leave Seattle
and homeport in Alaska. Mr. Oates opined that this is probably
happening sooner than those initial visionaries thought it
would.
Responding to the question about cost, Mr. Oates said the City
of Seward has paid for the initial engineering concept and
economic analysis and has received input from the U.S. Army
Corps of Engineers. The project appears to be economic. The
$400,000 capital appropriation is to complete both the
engineering concept and economic analysis before committing more
money to the project. At this point the rough estimate of the
cost is approximately $34 million. That builds on the existing
$70 million infrastructure on the east side of Resurrection Bay.
He noted that there are two additional phases to the project if
the remaining five CDQ groups move to Alaska. The City of Seward
would maintain the infrastructure, just as it does now for the
existing industrial area. Revenue is currently generated from
land leases and the lease with Seward Ship's Drydock & Ship's
Chandlery. The Coastal Villages Region Fund would have skin in
the game through binding contracts sufficient to secure the
bonding for the project. Funding for the project could be a
combination of state GEO bonding, revenue bonding through
contracts with CVRF and others, or public/private financing. The
Coastal Villages Region Fund can't build the infrastructure
itself because the Magnuson-Stevens Act mandates it spend
earnings in the Bering Sea area or the vessels that fish in
those areas. CVRF can be a tenant.
3:32:58 PM
SENATOR MENARD joined the committee.
MR. OATES said CVRF found that only Seward met all its needs.
The initiative to move came from the president of the board of
the Coastal Villages Region Fund and the board produced a DVD
that does a good job of articulating their reasons for moving.
He noted that every year CVRF spends approximately $2 million to
fly crewmembers to and from Seattle, about $20 million in
moorage and maintenance in Seattle, and $2 million to fill the
fleet's fuel tanks just one time so there are business and
economic reasons for the move. He agreed with Representative
Seaton that the fleet wouldn't interfere with smaller vessel
traffic in Seward because the facility is on the other side of
Resurrection Bay. The timeline is December 2014.
3:35:16 PM
CHAIR OLSON asked if the City of Seward had considered bonding
for the capital project.
MR. OATES replied revenue bonding would be one approach for
funding the project.
SENATOR WAGONER asked if there is any opportunity for funding
through the U.S. Army Corps of Engineers ("Corps").
MR. OATES replied the initial phase can be done at the state
level, but the Corps might need to be involved in the permitting
and funding stream in phases 2 and 3. The initial phase is
economic and will be sufficient to establish both land and water
infrastructure. Finally, he said, many of the Coastal Villages
Region Fund crew members already come to Seward for the AVTEC
training and are familiar with the area.
3:37:57 PM
SENATOR WAGONER asked if the Seward shipyard was currently under
lease.
MR. OATES replied it's under lease to the private company Seward
Ship's Drydock & Ship's Chandlery. That ship repair facility
does major work on Coast Guard and other vessels, which provides
another reason for coastal villages to come to this area.
SENATOR WAGONER asked if the entire acreage was leased or if
there was a place for other vendors to locate.
MR. OATES replied there's plenty of expansion room for all user
groups; some of the available land is municipal and some is in
private ownership.
SENATOR KOOKESH reminded the committee that this is only a
resolution.
3:40:04 PM
NEIL RODRIGUEZ, Coastal Villages Region Fund (CVRF) said CVRF
already uses the Seward facility as a dry dock for some of its
vessels, but they aren't there on a full-time basis. One thing
to take into consideration, he said, is that CVRF has been
growing at a rapid rate and it has partnerships in other CDQ
groups.
MR. RODRIGUES noted that a number of regional residents do
maintenance on CVRF boats and it's an overwhelming trip for
Western Alaska residents to travel to and from Seattle. Sending
these workers to Seward would help the city and keep the work in
Alaska.
CHAIR OLSON asked Representative Seaton if he would like to make
any closing comments.
REPRESENTATIVE SEATON said the City of Seward bonded to build
the Spring Creek Prison, which is another indication that the
business community will find the municipality approachable when
a long-term project makes sense.
3:43:36 PM
SENATOR KOOKESH moved to report HJR 27 from the committee with
individual recommendations and attached fiscal note(s).
CHAIR OLSON announced that without objection, HJR 27 moved from
the Senate Community and Regional Affairs Standing Committee.
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