Legislature(2023 - 2024)BUTROVICH 205
04/27/2023 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Ports and Harbors of Alaska: Part 2 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 27, 2023
1:35 p.m.
MEMBERS PRESENT
Senator James Kaufman, Chair
Senator David Wilson, Vice Chair
Senator Löki Tobin
Senator Jesse Kiehl
Senator Robert Myers
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: PORTS AND HARBORS OF Alaska, PART 2 BY THE ALASKA
ASSOCIATION OF HARBORMASTERS AND PORT ADMINISTRATORS AND PORT
REPRESENTATIVES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ALVIN OSTERBACK, Mayor
Aleutians East Borough
Sand Point, Alaska
POSITION STATEMENT: Delivered the presentation titled Harbors
and Docks in the Aleutians East Borough.
HELEN HOWARTH, City Manager
Cordova, Alaska
POSITION STATEMENT: Delivered the presentation titled Cordova
Harbor.
JON ERICKSON, Manager
City and Borough of Yakutat
Yakutat, Alaska
POSITION STATEMENT: Delivered the presentation titled City and
Borough of Yakutat Ports and Harbors.
PHILLIP ZAVADIL, Manager
City of St Paul
Saint Paul, Alaska
POSITION STATEMENT: Delivered the presentation titled Saint Paul
Harbor.
MIKE BROWN, Manager
Matanuska-Susitna Borough
Port Makenzie, Alaska
POSITION STATEMENT: Delivered the presentation titled Port
Makenzie.
BRYAN HAWKINS, President
Alaska Association of Harbormasters and Port Administrators
Homer, Alaska
POSITION STATEMENT: Responded to questions about the overview of
Ports and Harbors in Alaska, Part 2.
ACTION NARRATIVE
1:35:21 PM
CHAIR JAMES KAUFMAN called the Senate Transportation Standing
Committee meeting to order at 1:35 p.m. Present at the call to
order were Senators Tobin, Wilson, and Chair Kaufman. Senators
Kiehl and Meyers arrived thereafter.
^OVERVIEW: PORTS AND HARBORS OF ALASKA: PART 2
OVERVIEW: PORTS AND HARBORS OF Alaska: PART 2
1:36:08 PM
CHAIR KAUFMAN announced the consideration of part 2 of the
overview of the ports and harbors of Alaska. He thanked the
Alaska Municipal League for coordinating the various
presentations. He recognized Alvin Osterback, mayor of the
Aleutians East Borough as the first presenter.
1:37:30 PM
ALVIN OSTERBACK, Mayor, Aleutians East Borough Sand Point,
Alaska, delivered the overview titled "Harbors and Docks in the
Aleutians East Borough." He stated that the borough is made up
of six communities; it encompasses 15,000 square miles; and the
tax structure consists of a two percent raw fish tax. Safe
harbors are the backbone of the communities and important to the
well-being of businesses in the region.
1:38:16 PM
MR. OSTERBACK reviewed slide 2, "Sand Point."
Robert E. Galovin Small Boat Harbor
• Owned by the City of Sand Point.
• Berthing space for 170 vessels.
• Fully rehabilitated in 2014: new floats, gangways,
electricity, potable water system & fire suppression
system.
New Harbor:
• Borough owns New Harbor.
• Served by Float B.
• Adequate to handle large & small vessels.
• Next phase: complete Float A.
• Borough received $4.125 State Harbor Facility Grant
and $5.3 PIDP.
• State granted 6-month extension to June 30th to
execute grant agreement.
1:39:35 PM
MR. OSTERBACK reviewed slide 3, "King Cove."
North Harbor:
• Provides moorage for up to 75 fishing boats.
• 26,000 square foot timber float system.
• Designed to withstand 130 mph winds.
• Ice-free year round.
• Owned and operated by the City of King Cove.
Robert "Babe" Newman Harbor
• Moorage for 60' to 150' fishing vessels.
• Accommodates about 50 boats.
• Owned by the City.
1:40:03 PM
MR. OSTERBACK reviewed slide 4, "False Pass."
• Completed boat harbor owned by Borough.
• City maintains & operates.
• Two floats.
• Accommodates 40+ boats from 32' to 120'.
• Borough funded construction of 2 floats.
1:40:31 PM
MR. OSTERBACK reviewed slide 5, "Akutan Harbor."
• Boat Harbor is near completion.
• Will be able to accommodate 58 vessels for up to
165'.
• Served by Float A.
• Needs funding to design and build a second float.
• Once complete, will accommodate 58 vessels up to
165' in length & 2 vessels up to 125' in length.
• Project depends on State's Harbor Grant Program to
finalize.
1:41:16 PM
MR. OSTERBACK reviewed slide 6, "Nelson Lagoon Dock."
• Borough owns dock: 35' X 150'.
• In 2021, $1.6 million in repairs conducted.
• Installed piles an anodes, overhauls to existing steel
fender system.
• Completion of dock's topside.
• Dock has 2-ton crane mounted on north side, forklifts and
loader.
• Boat ramp: 21' X 157' used for small boats and skiffs.
• Travel lift accommodates boats 50' in length and 14' in
width, up to 40 tons.
• One set of finger piers on each side of dock; can operate
in most weather & currents.
1:42:13 PM
MR. OSTERBACK reviewed slide 7, "Cold Bay Dock."
• Cold Bay Dock is 45 years old.
• Serves as major marine hub in Aleutians for
conventional and containerized general cargo,
petroleum products; landing for passengers via
fishing boats and Tustumena Ferry.
• Public dock: 60' wide by 360' long.
• Borough owns dock.
• Has Dock Management Agreement with City of Cold
Bay to maintain and operate it.
• Projected to have 10-year life span.
• Borough conducted a Feasibility Study.
• Determined major structural elements in poor
condition; show ongoing deterioration.
• Eventually, function & capability will be reduced
and no longer be serviceable.
• Borough currently working with AML and State on
PIDP grant application for design, permitting &
construction of new dock.
• This is a critical need for community & the
region.
1:43:31 PM
MR. OSTERBACK moved to slide 8, "Challenges:" and paraphrased
the following:
• Communities are remote: accessible only by plane or
boat.
• Harsh & unpredictable weather: gale force winds,
dense fog.
• Travel to our communities is expensive.
• Cancellations cause added costs for contractors.
• Other hurdles: inflation, rising interest rates,
supply chain issues.
• Despite challenges, proud of accomplishments.
• Will overcome obstacles to provide necessary
infrastructure.
1:44:08 PM
MR. OSTERBACK moved to slide 9, "Importance of Infrastructure"
and paraphrased the following:
• Commercial fisheries are the lifeblood of our local
communities.
• Cannot grow and attract businesses without
operational boat harbors and docks
• This infrastructure is needed to create healthy
communities.
• Communities of Aleutians East Borough rely heavily
on State for expertise and to provide matching grant
funds for all our projects.
• Appreciate State's help.
• Hope to continue improving infrastructure.
• Important for local economies as well as that of the
State.
1:44:40 PM
MR. OSTERBACK paraphrased slide 10, "Importance of State &
Federal Funding."
The Borough has applied on many occasions for State of
Alaska Harbor Facility Grant funds. Last year, the
Borough was pleased to receive $4.125 million in State
Harbor Municipal Grant funding for Sand Point's New
Harbor. Those monies were used as matching funds for
the $5.3 million in Port Infrastructure Development
Program financing the Borough received for this
project. The State of Alaska Harbor Facility grants
have been an integral funding source for Borough
harbor projects. Those funds will continue to be
essential for future projects.
Federal funds are also crucial. Numerous grant
opportunities are currently available.
SENATOR TOBIN provide context for the size of the 360 foot Cold
Bay Dock by pointed out that it is longer than a football field.
1:45:56 PM
CHAIR KAUFMAN asked Mr. Osterback to describe the borough's
project management structure and the use of contractors to
provide oversight.
MR. OSTERBACK responded that the borough has a strong mayor
government whereby the mayor and borough administrator work
closely with the engineering firm that provides oversight of the
project.
CHAIR KAUFMAN recapped the answer.
MR. OSTERBACK agreed with the recap. He said it's worth the
money to hire engineers to be project managers to provide
oversight and protect the borough's interests.
1:47:00 PM
SENATOR MYERS joined the committee.
CHAIR KAUFMAN asked if he had any closing comments.
MR. OSTERBACK said he appreciates the opportunity to ensure that
the state understand the importance of harbors.
1:49:13 PM
CHAIR KAUFMAN recognized Helen Howarth, City Manager of Cordova
as the next presenter.
1:49:42 PM
HELEN HOWARTH, City Manager, Cordova, Alaska, began the
presentation about Cordova Harbor on slide 2, "Background."
• BUILT AND MAINTAINED BY STATE OF ALASKA UNTIL 2003
WHEN OWNERSHIP TURNED OVER TO THE CITY
• SOUTH HARBOR BUILT IN 1983
• NORTH HARBOR UPGRADED IN 2006
• 711 SLIPS
• SINGLE BASIN HARBOR WITH TWO MOORAGE AREAS: NORTH
HARBOR AND SOUTH HARBOR
• VESSELS ARE BETWEEN 18 AND 80 FT AND PRIMARILY
INVOLVED IN COMMERCIAL FISHING INDUSTRY
1:50:42 PM
MS. HOWARTH reviewed the bullets on slide 3, "General
Information." She relayed that a 2016 condition assessment found
the harbor in poor to serious condition with 37 of the mooring
stalls either missing or damaged to the point that they're
unusable.
• 711 SLIPS
• SINGLE BASIN HARBOR WITH TWO MOORAGE AREAS: NORTH
HARBOR AND SOUTH HARBOR
• VESSELS ARE BETWEEN 18 AND 80 FT AND PRIMARILY
INVOLVED IN THE COMMERCIAL FISHING INDUSTRY
• SHIPYARD WITH 150 TON TRAVELIFT AND LARGE VESSEL
STORAGE
• TWO SMALL VESSEL STORAGE LOTS
• 400 FOOT OCEAN DOCK, 300 FOOT CITY DOCK
• THREE 1500LB LIFT RATED HOISTS
• TWO VESSEL LAUNCH RAMPS
MS. HOWARTH moved to slide 4, "Operational Uses." She described
the Cordova Harbor as a working harbor. It hosts one of the
largest fishing fleets in the state and is the core of the
Copper River and Prince William Sound fishing fleet; it houses
five seafood processors; it is a cargo hub; all bulk fuel comes
through the harbor; tourism and recreation are emerging
industries but still quite small; state and federal agencies
regularly use the harbor.
1:52:59 PM
MS. HOWARTH continued to slide 5, "Challenges and Opportunities"
and spoke the following points:
CHALLENGES
• CONSTANT MAINTENANCE
• STORM AND WEATHER-RELATED IMPACTS
OPPORTUNITIES
• ECO-CRUISE INDUSTRY VISITS IN CORDOVA
• YEAR-ROUND FISHERIES AND MARICULTURE
1:54:28 PM
MS. HOWARTH spoke to slide 6, "South Harbor Rebuild 9/23-6/24."
She highlighted that the city had a design build contract with
Turnagain Marine Construction and a third-party manager that has
extensive port and harbor development experience to help guide
the project.
• REPLACE ENTIRE SOUTH HARBOR FLOAT SYSTEM FOR
PERMANENT AND TRANSIENT MOORAGE
• NEW DRIVE-DOWN TRANSFER BRIDGE AND SERVICE FLOAT
(DRIVE-DOWN DOCK)
• NEW SOUTH HARBOR BULKHEAD
• SOUTH HARBOR PARKING IMPROVEMENTS AND PEDESTRIAN
WALKWAY
1:55:24 PM
MS. HOWARTH discussed slide 7, "South Harbor Project Funding."
CONTRACT $39.6M (REDUCED SCOPE NEGOTIATED)
FY2 2 PROJECT COST: $32M
PANDEMIC IMPACTED FY2 3 PROJECT COST: $46M
FUNDING SECURED: $35.6M
$20M USDOT RAISE [Rebuilding American Infrastructure
with Sustainability and Equity] GRANT, $5M STATE TIER
1 GRANT, $3M LEGISLATIVE (FY22), CITY BOND $5M, CLEAN
WATER LOAN $2M, PINK SALMON DISASTER $670K
SHORTFALL: $4M
ONGOING CITY EFFORTS TO RAISE BALANCE
MS. HOWARTH said she wanted the committee to be aware that a
$360 million administrative fee was assessed on the $5 million
state tier 1 grant and that unexpected costs like that hurt
because the budget was built around the $5 million award.
1:57:54 PM
MS. HOWARTH moved to slide 8, "North Harbor Uplands and
Transportation Improvements."
• STABILIZE AND PROTECT FREIGHT CORRIDOR (BREAKWATER AVE)
• INCREASE FREIGHT CORRIDOR SAFETY AND REDUCE CONGESTION
• PROVIDE SAFE AND EFFICIENT FUELING FACILITY FOR MARINE
VESSELS
BUDGET: $26.9M
FUNDING: Pending US DOT PIDP Grant
CHAIR KAUFMAN thanked her for the presentation.
2:00:10 PM
CHAIR KAUFMAN recognized Jon Erickson, Manager of the City and
Borough of Yakutat, as the next presenter.
2:00:19 PM
JON ERICKSON, Manager, City and Borough of Yakutat, Yakutat,
Alaska, delivered the presentation titled City and Borough of
Yakutat Ports and Harbors. He reported that he had been the
manager for nine years and had worked to upgrade Yakutat's ports
throughout his tenure.
2:01:15 PM
At ease while Chair Kaufman handed the gavel to Vice-Chair
Wilson.
2:02:55 PM
VICE-CHAIR WILSON reconvened the meeting and asked Mr. Erickson
to proceed.
MR. ERICKSON began the presentation by describing the port of
Yakutat's three main facilities as outlined on slides 2, 3, and
4.
Small Boat Harbor: The state built this boat harbor in 1960 and
gave it to the city in approximately 2002. The harbor
accommodates small fishing vessels and boats.
Multi-Purpose Dock: The city built this sheet pile dock in 2015
to receive fuel and cargo. This dock receives fuel and freight
barges and provides transient moorage for larger commercial
fishing and other vessels that utilize the small float and
walkway. He noted that Allen Marine meets cruise ships and takes
passengers on private tours. The city enjoys some of this
revenue.
Ocean Cape Dock: This city-owned dock has been in operation
since the early 1900s. It is rented to the local fish processor
that primarily ships fresh fish on Alaska Airlines. It
accommodates large ocean vessels because the Multi-Purpose Dock
is too short to dock larger ferries, barges, and cruise ships.
He noted that the Alaska Marine Highway ferry Kennecott is not
running this year so the city won't have a ferry all summer.
Also, the Mental Health Trust has plans to open a garnet/gold
mine in nearby Icy Bay.
2:05:00 PM
SENATOR KIEHL joined the committee.
2:08:06 PM
MR. ERICKSON moved to slide 4, "Port Challenges" and spoke to
the following points:
ECONOMIC GROWTH STALLED
Multi-Purpose Dock expansion needed to handle larger
ships such as cruise ships. The state has offered to
fund.
FUNDING LIMITED
The state awarded a $3.6M grant for Small Boat Harbor,
but must be used by June 30, 2023 or it will be lost.
SAFETY CONCERNS
Small Boat Harbor has deteriorated to the point it is
unsafe to use. It is not ADA compliant and the fire
suppression system is out of order.
2:12:22 PM
MR. ERICKSON advanced to slide 5, "Port Planned Projects." He
discussed the following points:
MULTI-PURPOSE DOCK
The State of Alaska has offered to fund the extension
of the Multi-Purpose Dock, which is expected to cost
$17 M. This is potentially the site of the new ferry
dock.
SMALL BOAT HARBOR
The state provided $3.6M to replace the Small Boat
Harbor. Yakutat applied for the DOT RAISE and Port
Infrastructure Development Program (PIDP) grants for
the additional funding needed to complete this
project, which is $8.9M. The total project cost is
$12,630,824.
2:14:54 PM
SENATOR TOBIN summarized her understanding of the funding for
the Small Boat Harbor. The state provided $3.6 million and the
additional funding that's needed must go to bond. The concern is
that the $3.6 million may no longer be available by the time the
additional funding has been secured.
MR. ERICKSON agreed with the summary and then provided more
granularity to show that the revenue shortfall amounts to $8.9
million
2:16:16 PM
SENATOR TOBIN said she understood the concern and posited that
the committee and individual members would follow up and help
anyway they could.
VICE-CHAIR WILSON asked whether the small rock right outside the
Small Boat Harbor been addressed.
MR. ERICKSON responded that boaters are safe if they hold to the
right of the small island that's just outside the harbor.
There's trouble for boaters who choose to go left.
VICE-CHAIR WILSON thanked Mr. Erickson for the presentation.
2:17:46 PM
VICE-CHAIR WILSON recognized Phillip Zavadil, Manager of the
City of Saint Paul as the next presenter.
2:18:00 PM
PHILLIP ZAVADIL, City Manager, City of St Paul, Saint Paul,
Alaska, delivered the presentation titled Saint Paul Harbor
Saint Paul Island, Alaska. He related that the harbor was built
to transition from the commercial fur seal economy to fishing.
Historically, nearly 50 percent of the Bering Sea snow crab was
delivered to and processed at Saint Paul. He noted that this
fishery was in transition.
2:18:41 PM
MR. ZAVADIL began the presentation on slide 2, "Harbor
Background."
• First breakwater constructed in 1983. Failed
following year during storm
• New 750' long breakwater constructed in 1987
• Current breakwater completed in 1989
• 1,800' long main breakwater
• 970' long detached breakwater
• 8 to 10 acres of harbor space
• Depths 18' to 25'
• Entrance channel is 300' wide
• In 2009 the Small Boat Harbor was completed
2:19:56 PM
MR. ZAVADIL continued to slide 3, "Facility Background."
• City South Dock - 200'
• City North Dock - 100'
• City Piers
• TDX/Trident Dock - 294'
• West Landing
• Tribal Dock (SBH) 60'
• Floating Docks (SBH)
• Harbor Office
He noted that the City South Dock accommodates most of the heavy
cranes, fuel barges, and other construction barges. The Icicle
Seafoods barge was on the West Landing dock during the heyday of
crab. That landing was destroyed by Hurricane Merbok.
2:21:30 PM
MR. ZAVADIL reviewed slide 4, "Use of Harbor."
• Fishing vessels
• Fuel barges
• Essential goods for the community
• Passengers from cruise ships, lighter in via small
boat
• Construction barges
• Port of refuge
• Medical incidents
• Research vessels
2:22:41 PM
MR. ZAVADIL spoke to the points on slide 5, "Challenges."
• No crab season
• Wave climate, changing conditions due to climate
change
• Funding and match requirements
• Harbor office constantly damaged by storms
• Depth does not allow larger ships to enter
2:23:41 PM
MR. ZAVADIL described the points on slide 6, "Opportunities."
• Increased tourism and cruise ships
• Support for Arctic research and research vessels
• National security interests
• Increased Coast Guard presence
2:25:06 PM
MR. ZAVADIL discussed the points on slide 7, "Ongoing and
Planned Projects."
• USACOE [US Army Corps of Engineers] Maintenance
Project in 2024
• Phase 1 - Facility Improvements
• Phase 2 - Expand Breakwater and Revise Entrance
Channel
• Phase 3 Relocate Exit to Salt Lagoon, Expand
Uplands and Inner Harbor
2:26:17 PM
At ease
2:27:20 PM
VICE-CHAIR WILSON reconvened the meeting. He mentioned visiting
the Coast Guard station and asked whether it was still fully-
staffed.
MR. ZAVADIL stated that the building was renovated after it
burned in 2020 but it's not currently staffed. The plan is to
use it seasonally, and renovate the facility at the airport to
store the helicopter and to use as a forward operating base for
search and rescue.
2:28:15 PM
MR. ZAVADIL moved to slide 7, "Phase 1A" and discussed the
following:
• Engineered fender system for City South Dock instead
of tires
• Installation of larger mooring bollards
• Installation of 5 berthing dolphins north of South
Dock
• New harbor office (relocate to small boat harbor)
2:29:32 PM
MR. ZAVADIL moved to slide 8, "Funding Applied for to Date" and
described the following points:
• USDOT RAISE [Rebuilding American Infrastructure with
Sustainability and Equity] Submitted for Phase 1A
Construction, Planning for North Dock Remove and
Replacement, Planning for Harbor Road
• USDOT PIDP [Port Infrastructure Development Program]
Applied for in 2021 and 2022 but not received.
Applying for in 2023 for Phase 1A
• EDA [Economic Development Administration] Received
for Small Boat Harbor Utility Improvements
• FEMA [Federal Emergency Management Agency] PSGP
[Port Security Grant Program] Applied for port
security plan
2:30:58 PM
SENATOR MYERS asked whether the Saint Paul Harbor was ice-free
year round.
MR. ZAVADIL said no, but it'd been two years since there was
enough ice to prevent vessels from entering the harbor. Winter
storms typically come from the north, but recently more storms
are coming from the south. The entrance to the harbor is
southwest and the harbor has had to be closed several times in
the last 5-6 years due to unsafe conditions.
2:32:21 PM
VICE-CHAIR WILSON asked whether Saint Paul sees very much
tourism from birders.
MR. ZAVADIL replied that Saint Paul Tours primarily focuses on
birders who fly in and then go on tour by bus. Efforts are
ongoing to provide birders more opportunities for tourists to go
out on a vessel to view birds not only on the water but also on
the cliffs. Small cruise ship passengers are primarily focused
on fur seals and the birds on the cliffs near the seal
rookeries. These tours are on the ground from 2-4 hours.
VICE-CHAIR WILSON asked if Saint Paul collaborated with Saint
George.
MR. ZAVADIL responded that collaboration is increasing between
the communities, but he'd like there to be more.
VICE-CHAIR WILSON recognized Mike Brown, Manager of the
Matanuska-Susitna Borough as the next presenter.
2:34:26 PM
CHAIR KAUFMAN took the gavel.
2:34:46 PM
MIKE BROWN, Borough Manager, Matanuska-Susitna Borough, Port
MacKenzie, Alaska, delivered the presentation on Port MacKenzie.
He stated that what characterizes Port MacKenzie is access to
the Upper Cook Inlet. The port will support barges and deep-
draft vessels and it has about 9,000 acres of uplands that are
zoned industrial. The two primary limitations are limited cargo-
handling equipment and a barge dock that is difficult to use. A
challenge is that the port is subject to the tidal and icing
conditions in the Upper Cook Inlet.
2:38:15 PM
MR. BROWN turned to slide 1 of the presentation, "Port MacKenzie
Way Ahead" and reviewed the three objectives.
BUSINESS DEVELOPMENT
1. -Develop Roll-on/Roll-off (Ro-Ro) ramp capability
2. -Develop business that aligns with regional needs
(partner with private sector/company with marine
expertise)
INFRASTRUCTURE IMPROVEMENTS
1. Roll-on/Roll-off (Ro-Ro) ramp
2. Explore Federal funding to improve cargo handling
3. Include private sector partner in design and
construction of new infrastructure
INCENTIVIZE PRIVATE INVESTMENT
1. Potential State corporate tax holiday
2. Tariffs breaks
3. Local tax incentives
2:39:07 PM
MR. BROWN moved to slide 2, "Port MacKenzie What Next?"
Cooperation with Port of Alaska.
Marine energy agreement with Municipality of
Anchorage to explore feasibility of a microgrid at
Port MacKenzie
He noted that efforts were ongoing to find areas where the two
ports can cooperate.
Economic Development Zone
Develop incentives oriented toward inviting private
investment
Maintain existing infrastructure
Completed earthquake repairs and working toward
disposal of select segments of Port conveyor system
Pursue grant opportunity
Develop Federal grant application for improving cargo
handling capability
Improve Port infrastructure
Construct roll-on/roll-off (Ro-Ro) ramp in conjunction
with current EDA grant for pile sleeve protection
Port MacKenzie Rail Extension
Explore use of corridor for multi-modal use:
industrial road or public road
He reported that over the last decade the state had invested
about $184 million in the extension. At this point the effort
has stalled out and the public has not realized any benefit. One
of the port's legislative priorities this year is to change the
conversation to be about multi-modal usage. The concept is to
turn it into a road to provide access to the Parks Highway and
Interior Alaska. He summarized that with some modest
improvements, Port MacKenzie is positioned to provide better
service to local users, create new opportunities, provide
economic opportunities to the Mat-Su, and improve resiliency for
the region.
2:41:55 PM
SENATOR MYERS asked him to expand on his statement about the
challenges that ice and tidal action in the Upper Cook Inlet
present to the port and whether the conditions are markedly
different on the other side at the Port of Alaska in Anchorage
in terms of ship traffic.
MR. BROWN replied that both ports are subject to the same tidal
conditions, but he believes the icing conditions at Port
MacKenzie can be more challenging for navigation than the Port
of Alaska in Anchorage. He opined that the two ports are not in
direct competition. Port MacKenzie was built as a bulk
commodity, resource development export facility, and it would be
beneficial to have some capability to import project cargo and
for other industrial uses. But there is no intention to compete
with the Port of Alaska in Anchorage for the movement of
commerce.
2:43:16 PM
SENATOR WILSON asked what it means to have resiliency for the
region.
MR. BROWN mentioned a natural disaster like an earthquake, and
opined that it would be helpful to have additional ports in the
region that could support the movement of goods and services
should the need arise. Additionally, Point MacKenzie is sparsely
populated and zoned industrial, so it could accommodate certain
industrial uses that aren't suitable near a major population
center.
CHAIR KAUFMAN asked if he was referring to the Port of Alaska in
Anchorage solar panel project when he mentioned the opportunity
to provide power.
MR. BROWN said yes; the Port of Alaska in Anchorage is
spearheading the project and Port MacKenzie is happy to
cooperate and talk about how it could also support the
municipality.
2:45:39 PM
CHAIR KAUFMAN asked if Port MacKenzie was currently handling
cargo.
MR. BROWN replied yes, but it comes and goes with projects;
there's nothing recurring at this point.
2:46:38 PM
CHAIR KAUFMAN recognized Bryan Hawkins, President of the Alaska
Association of Harbormasters and Port Administrators, as the
next presenter.
2:47:04 PM
BRYAN HAWKINS, President, Alaska Association of Harbormasters
and Port Administrators ("Association"), Homer, Alaska, stated
that he did not prepare a presentation, but was available to
answer follow up questions.
2:47:40 PM
SENATOR KIEHL asked if there were best practices or a general
approach for funding harbors.
MR. HAWKINS replied that the standard approach is to set up
harbors as enterprises, so their finances are separate from the
communities that own them. In Homer, the budgets are separate
but the city operates the facility and as harbormaster he's a
city employee. The city pays into the enterprise fund and the
reserves are used to maintain the facility. In the next budget
cycle Homer is setting aside funds that will be used for match
grants.
2:49:23 PM
CHAIR KAUFMAN asked whether the Association has best practices
related to the management of construction processes to ensure
good oversight of projects.
MR. HAWKINS replied that the Association members have been
networking for a number of years and are learning best practices
from each other. It's been a goal and they're seeing solid
projects come together. He
MR. HAWKINS said he'd like to discuss the indirect cost
allocation plan (ICAP) which is the fee that's charged to
communities that receive a State Harbor Municipal Grant. The
program was established to address maintenance needs for the
harbors the state sold to cities and municipalities. His
explanation for Homer is that the city purchased the harbor from
the state in 1999 for $1 and that dollar also bought all the
deferred maintenance. The Harbormaster's Association worked with
the Department of Transportation and Public Facilities (DOTPF)
to address the issue and the solution was the State Harbor
Municipal Grant Program. It has a 50:50 match and a $5 million
cap. The city or municipality has to have all the engineering in
place and have proof that it has the match before the
application can be submitted. For the first 10-15 years, the fee
was about two percent of the total project cost, but in the last
few years, it's been as high as 10 percent. That can amount to a
lot which takes away from the dollars that are available for the
project. He said the Association greatly appreciates and
advocates for the program but doesn't believe the larger ICAP
fee is justified.
2:53:53 PM
CHAIR KAUFMAN said he appreciated the information and committed
to look into the matter further and share his findings with the
committee.
SENATOR WILSON quipped his appreciation for the presentations.
CHAIR KAUFMAN thanked the presenters.
2:55:43 PM
There being no further business to come before the committee,
Chair Kaufman adjourned the Senate Transportation Standing
Committee meeting at 2:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Aleutians East Borough Harbors.pdf |
STRA 4/27/2023 1:30:00 PM |
Ports & Harbors |
| Cordova Harbor.pdf |
STRA 4/27/2023 1:30:00 PM |
Ports & Harbors |
| Yakutat Harbor.pdf |
STRA 4/27/2023 1:30:00 PM |
Ports & Harbors |
| Saint Paul Harbor.pdf |
STRA 4/27/2023 1:30:00 PM |
Ports & Harbors |
| Saint Paul Harbor Backup Doc - Island Harbor Improvement and Expansion Feasibility Study 8.30.2021.pdf |
STRA 4/27/2023 1:30:00 PM |
Backup Document |
| Port Mackenzie in Mat-Su.pdf |
STRA 4/27/2023 1:30:00 PM |
Ports & Harbors |