HomeMy WebLinkAbout1989-04-24 Council Packet - Special Meeting, Oil SpillKenai City Council
Special Council Meeting
April 24, 1989
Economic Impact Study of Oil Spill
Modifications to Dairy -Queen Lease
1791-1991
CITY OF KENAI
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210 FIDALGO KENAI, ALASKA 99611
TELEPHONE 283 - 7535
FAX 907-283-3014
NOTICE OF SPECIAL MEETING
AMENDMENT OF WORK SESSION NOTICE
The Kenai City Council will be holding a special meeting on
Monday, April 24, 1989 at 6:30 PM in the Council chambers.
To be discussed:
1. Transfer Area of Responsibility for Economic
Impact Study of Oil Spill from Council to Economic
Development District and Rescind Funding Request
2. Discussion of Modifications to Dairy -Queen
Contract
Immediately following the special meeting, Council will
conduct a work session.
To be discussed:
1989-90 Budget
The public is invited to attend and participate.
Janet Ruotsala, CMC
City Clerk
DATED: April 21, 1989
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April 22, 1989
OIL SPILL
ECONOMIC IMPACT AND MITIGATION
Situation:
Many Federal, State, Local Government and private enterprise entities
are involved in oil spill activities chiefly of a physical nature.
No known study of Economic Impact and Mitigation plans exists for the
Borough and the Cities therein.
The oil spill is effecting as individuals and as a group. What is need-
ed is a quick, focused study of the economic effects on us as individuals and
as a group. This is essential to assess comprehensive damage and in order to
make rational decisions for future mitigating measures.
The means at hand to perform the study and develop mitigating suggestions
within a 20 day period appear to be;
A. City of Kenai plan approved by Council April 29, 1989 with
expectations for completion by mid -May at a cost of $9500.
B. Kenai Borough designation of $50,000, Exxon funds, by order
of Mayor to Economic Development District. Purpose is study
economic effects and make mitigating recommednatins for
entire Borough and Cities.
C. Federal EDA Emergency Planning money, on matching basis amount
and timing indeterminate.
D. U of Alaska, Institute of Social and Economic Research long
range impact study. Size and timing indeterminate.
Page -1-
FOR CONSIDERATION
By Borough Mayor, City of Kenai Mayor and Council, EDD and Kenai
Economic Development Commission.
A. Exxon money is for all citizens of Borough so it should be
used and City of Kenai monies negated.
B. Economic Development District should take lead, be Contracting
Agent, disburse funds and be financially accountable to Borough.
C. Divide effort into function:
1. First function should be study of impact - suggest
8OZ or $40,000.
2. Second Function should be development of mitigating
recommendation 20% or $10,000.
First Function should take place first with Second Function
following and blending as appropriate.
D. First Function -Impact Study, needs single leadership, a Con-
sultant/Co-ordinator, familiar with Borough who must obtain
and assimilate advice and direction from:
1. EDD, EDC Boards and staffs
2. Industry associations
3. Other sources
First Function must make use of short term intensive efforst of
research specialists familiar with Borough responsible for focused
report, delivered and presented quickly.
E. Second Function -Recommended Mitigation, should be an ongoing re-
sponsibility of EDD. Perceived future funding such as EDA, ISER,
State, etc. should go to EDD.
Page -2-
SCOPE OF STUDY
CO`NERCIAL FISHERY
INTRODUCTORY COMMENT - obtain best estimates of anticipations for 1989
Commercial Fish Season and past Historical data blend into a model year.
Develop scenarios if Commercial Fishery 1989 model year is impacted by
decline of various percentages 107„ 20Z, 50i or total loss.
Study would express in data and narrative form damaging effects on
Borough and cities. Study would also attempt to scope benefits of oil
spill clean up efforts.
I. Borough and A. Using various scenarios, provide estimates
By City of effect on:
1. Fish tax
2. Sales tax
B. Personal property value of fishing fleet
C. Real property value of processors
D. Uncover any hidden economic/financial costs
II. Communitv A. Projections for:
1. General business community
2. Directly related fishery businesses
B. Permanent fishery labor force
1. Overall numbers
2. Wage levels
C. Transient labor force
(same as B above)
III. Recommendations
to Borough and
Cities A
B
C
Oil spill economic activities needing closest
scrutiny to determine vital effects.
Proposed government activities resulting from
spill
Attempt to identify long range effects
Page -3-
SCOPE OF STUDY
TOURISM
I. Identify by types of business
A. Hotels, Motels, Lodges
B. Restaurants
C. Transportation
II. Determine In-State/Out-of-State clients
A. Percentage of resident clients to non-resident
B. Gross dollar volumes
III. Sales Tares paid
IV. A. Anticipated year
B. Actual impacts to date
C. Estimated impacts
V. Changes in labor force
A. By number of employees
B. Wage rates
VI. Other items such as new construction, remodeling, etc.,
effected by spill impact.
VII. Recommendations to
A. Borough and City Governments
B. State Tourism Agencies
C. Private Industries involved
Page -4-
SCOPE OF STUDY
EFFECTS OF CLEAN UP EFFORTS
I. Listing of all organizations, government and private,
involved locally regardless of where based.
II. A. Changes in labor force
B. Current activities of employment centers,
Union hall hirings and other sources
III. Changes in salary and wage levels
Future plans of both governmental and private business
organizations involved in clean-up
V. Known effects on
A. Services
B. Equipment supplies
C. Hotels, Lodges, Restaurants
D. Transportation companies
Page -5-
SCOPE OF STUDY
ALL OTHER ECONOMIC ACTIVITIES
I. Utilities
II. Banks
III. Professions
IV. Housing Market
V. Wholesalers
V1. Retail Trades
VII. Governmental Services
Page -6-
POLICY AND PROCEDURE
!_TTTTIG'T TUFQ
I. EDD Board to be primary responsible administrator
II. Consultant/Co-ordinator serves at pleasure of EDD Board and is
directly responsible only to Board. Estimated time of service not
to exceed 4 weeks. Besides EDD personnel, all other personnel
contracted for in effort, serve at pleasure of Consultant/Co-
ordinator.
III. Present EDD staff continue ongoing duties on a diminishing scale,
co-operate as asked in work effort and focus as possible time and
on Function Two, Mitigation Recommendations, as this activity will
be more ongoing.
IV. All consultant and additional staff be employed as casual personnel
by contract with EDD Board. EDD not responsible for taxes or
beneifts.
V. All disubrsements be approved by Executive Director of EDD but must
originate from Consultant.
VI. Temporary quarters, secretarial service, phones and files be sought
or obtained immediately.
VII. All materials, reports, data and equipment are property of the EDD.
VIII. Changes in Budget increasing/decreasing "Personnel and Assistants"
require EDD Board approval. All other budget transfers can be made
by concurrence of EDD Director and Consultant and memo explaining
such shall go to EDD Board.
IX. Kenai School District will be asked to supply:
A. Office space and meeting rooms
B. Desks, chairs, filing cabinets, etc.
C. Other relevant supplies and materials
Page -7-
METHODOLOGY
I. For Function One - Impact Studv
A. Commercial Fishery - Broaden work effort of Doug
Coughenower to include all areas of Borough
B. Tourism - contact Eric McDowell who has done Kenai
Peninsula tourist studies. If available offer scope
of study as refined to be accomplished quickly.
Guidance by Sherri
C. Effects of Clean-up efforts - suggestions from Board
Guidance by Jim Carter
D. Other Economic Activities - suggestions from Board
Guidance by Stan Stedman
E. Other Sources of Talent:
1. Frank McIlhargey 5. Sam Best
2. Don Thomas 6. George Ford
3. Jim Butler 7. Barry Thompson
4. Pat O'Connell 8. Leon Quesnel
II. For Function Two - Mitigation Recommendations
A. Consultant/Co-ordinator and EDD Executive Director meet
with Mayors, elected officials, business leaders after
some general estimates of impact have been ascertained.
Brief them and ask for suggestions.
B. Contact ISER, EDA specialists in this field State Department
of Commerce staff
Page -8-
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