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HomeMy WebLinkAbout2002-05-06 Harbor Commission PacketKENAI HARBOR COMMISSION MEETING MAY 6, 2002 KENAI COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1- ITEM 2: ITEM 3: ITEM 4: ITEM 5: ITEM 6: ao ITEM 7: ITEM 8: ITEM 9: ITEM 10: CALL TO ORDER/h ROLL CALL AGENDA APPROVAL APPROVAL OF MINUTES_ -- April 8, 2002. PERSONS SCHEDULED TO BE Hg'-AI~D OLD BUSINESS NEW BUSINESS Discussion -- Boating Facility Operating Alternatives REPORTS Director Dock Foreman City Council Liaison COMMISSIONER COMMENTS/OUESTION~ INFORMATION Kenai City Council Action Agendas of April 3 and 17, 2002. 4 / 11 / 02 Homer News article, Bluff Seawall Project on Hold. 4/02 Resource Development Council for Alaska, Inc., Resource Review. 4/10/02 Anchorage Daily News article, Water Samples Show Oil Pollution in Kenai River. ADJOURNMENT KENAI HARBOR COMMISSION MEETING APRIL 8, 2002 KENAI COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1' ITEM 2: ITEM 3' ITEM 4: ITEM 5: ITEM 6' ao ITEM 7: ITEM 8: ITEM 9' ao ITEM 10- CALL TO ORDER/h ROLL CALL AGENDA APPROVAL APPROVAL OF MINUTES-- March 11, 2.002 PERSONS SCHEDULED TO BE H _EAt~ OLD BUSINESS NEW BUSINESS Discussion -- Request to Lower Lease Rate/RS~l Seafoods Discussion -- Council Meeting Action Agendas REPORTS Director Dock Foreman City Council Liaison COMMISSIONER COMMENTS/Q~TION.~ INFORMATION Kenai City Council Action Agendas of March 6 and 20, 2002. ADJOURNMENT KENAI HARBOR COMMISSION' MEETING APRIL 8, 2002 KENAI COUNCIl, CHAMBERS 7:00 P.M. CHAIRMAN TOM THOMPSON, PRESIDING MINUTES ITEM 1' CALL TO ORDER/h ROLL CALL Chairman Thompson called the meeting to order at 7:00 p.m. Kathleen Graves announced she was married on March 13,2002 and her name is now Kathleen Simon. Members Present: Eldridge, Rogers, Simon, Spracher, Thompson, Barrett Members Absent- Foster Others Present: Councilman Bookey, Public Works Director Komelis, Contract Secretary Roper ITEM 2: AGENDA APPROVAL MOTION: Commissioner Eldridge requested that the handouts provided by Komelis prior to the meeting be added under Old Business, Item 5.a. Eldridge MOVED to approve the amended agenda and Commissioner Spracher SECONDED the motion. There were no objections. SO ORDERED. ITEM 3' APPROVAL OF MINUTES- March 11, 2002 MOTION: Commissioner Eldridge MOVED to approve the minutes of January 7, 2002 and Commissioner Rogers SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD - None ITEM 5' OLD BUSINESS Update Discussion -- Kenai Coastal Trail and Bluff Erosion Project/Status Councilman Bookey announced the City just learned the initial funding of $500,000 for the Kenai Coastal Trail and Bluff Erosion project was included in the Energy and Water Development Appropriations Bill for the Corps of Engineers to conduct a study of Kenai River bank stabilization needs. Bookey added, although the City is disappointed the funds were not direct to the City, future funding may be easier to obtain if the Corps determines the need for bank stabilization exists. The Corps has a problem with the current design but will work on modifications to make it more permit worthy Kornelis reported the Corps representative from Anchorage would visit Kenai on April '9th to discuss the project and look at the area. Simon recommended the City have the Corps and Kenai River Center be involved in staff meetings regarding the Kenai Coastal Trail. Simon added, she met with the local Corps person and that would be a good place for the City to start. Komelis reiterated the Corps representative from Anchorage would be onsite on April 9th and it is possible the local person would be involved. Bookey expressed concern ~that Peratrovich, Nottingham & Drage (PND) would not be the low bidder and the City would have to start over. Eldridge recommended all the information compiled by PND be made available to the Corps. Kornelis assured the Commission the City would be involved completely with the project and the information obtained to date will be utilized. Komelis also added the money spent to date is money well spent as the City can now logically explain their desires to the Corps. A lengthy discussion ensued and it was determined the only option at this point was to wait and see what the Corps develops. Bookey noted the Mayor submitted another $500,000 request for federal funds for the project. ITEM 6: NEW BUSINESS ,,, Discussion- Request to Lower Lease Rate/R&J Seafoods. Komelis reported R&J Seafoods submitted a request for a 25% rate reduction on their leases due to the poor fishing seasons. Komelis explained the current leases and the dollar amount of each. Komelis added, the leases expire in September and October of 2002 and after discussions with the City Manager and Finance Director, it was the City's desire to keep the rate the same. Eldridge thought consideration should be given to the 25% rate reduction due to the poor fishing industry. Simon agreed a reduction was necessary but thought a counter offer of 15% should be made. Councilman Bookey stated there were a couple of issues to consider when discussing this request; first, the City's budget is in serious trouble and the doCk in particular, as revenues were down by $70,000 last year; second, the City has to be careful with allowing the rate reductions, especially for an operator who resides outside the City of Kenai. HA~OR COMMISSION MEETING APRIL 8, 2002 PAGE 2 Spracher thought a five percent (5%) rate reduction could be made in an effort to show some compassion to the situation. MOTION Commissioner Simon MOVED the City reduce the R&J Seafoods lease rate by vie percent in recognition of the poor conditions of the fishing industry and Commissioner Spracher SECONDED the motion. Simon stated she interviewed users on the dock and the chief gripe is that the City charges too much. Bookey explained the dock doesn't generate enough revenue to keep operating and at this time, the General Fund is subsidizing dock operations. Discussion continued on the cost of operating the dock. AMENDMENT TO MOTION: Commissioner Simon MOVED to amend the main motion that the City reduce R//td Seafoods lease rate by ten percent {10%) in recognition of the poor conditions of the fishing industry and Commissioner Spracher SECONDED the motion. Discussion took place on the difference with both a five and ten percent reduction to the leases. WITHDRAWAL OF MOTIONS: After discussing further the reduction, Simon withdrew both motions w/th the second's concurrence. Discussion -- Council Meeting Action Agendas Councilman Bookey stated there were some Commissions who do not want the Council action agendas included in the meeting packets and asked if Harbor would like to see them continue. The general consensus was the Harbor Commission would like to see the agendas included. ITEM 7: REPORTS 7-a. Director-- Komelis reported the road to the dock was plowed but the gate was locked and anyone requiring access could get the key from City Hall. Simon asked if one is allowed to walk out to the dock and Komelis replied, it was allowable. Dock Foreman -- No report. 7-c. City Council Liaison -- Councilman Bookey reported that budgets work sessions were scheduled for April 9, 10 and 16th and will be held in Council Chambers. Bookey added, the City Council meeting agendas are posted on the City's website as well as department quarterly income and expense reports. HARBOR COMMISSION MEETING APRIL 8, 2002 PAGE 3 ITEM 9: COMMISSIONER COMMENTS/QUESTIONS Commissioner Spracher suggested the City look at how Long Beach, California handles dock revenue. Commissioner Barrett stated he was pleased to be serving on the Harbor Commission. ITEM 10: II, FORMATION 10-a. Kenai City Council Action Agendas of March 6 and 20, 2002. ITEM 11: ADJOURNMENT MOTION: Commissioner Spracher MOVED to adjourn. ORDERED. There were no objections. SO The meeting adjourned at 8:20 p.m. Minutes recorded and transcribed by: Barbara Roper, Contract Secretary HARBOR COMMISSION MEETING APRIL 8, 2002 PAGE 4 MEMORANDUM CITY OF KENAI "oa ,4 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ TO' FROM: DATE: SUBJECT: Harbor Commission Keith Kornelis, Public Works Manage~~-'-~_ April 29, 2002 Boating Facility- Operating Methods The City Council would like the Harbor Commission to discuss and make recommendations on alternative ways to operate the Boating Facility. 1. Complete privatization of the facility or contract out the entire facility. 2. Contract out everything on the concrete dock including the cranes and fueling operations. The City would continue to operate the launch ramps, launch floats, restrooms, water well, sewer system. 3. Close the entire facility. 4. Other alternatives. Things to consider: Yearly testing and certifications for well and drinking water, septic system, fuel lines, hydraulic pressuro tests, cranes, scales, fuel measurements, and others. At both the concrete dock and floats between launch ramps, steel piles need to be set by crane, which we contract out. Mud needs to be removed on launch ramps and each pile. City contracts backhoe to dig mud out along ramps. · Water system needs recharging each year. Restrooms need to be winterized and summerized. They require services 3 or 4 times each day. · Money needs to be collected many times per day from boat launch fee. Attached is the FY 2003 Proposed Operating Budget. Please note that there is $70,000 transferred into the Boating Facility Account from the General Fund to cover expenses. KK/jet DEPARTMENT NARRATIVE , BOATING FACILITY FUND - BOATING FACILITY This department is supervised by the Public Works Manager. This department consists of a dock manager and a dock hand. These are summer-time positions. The dock manager works six months in this department and six months in the street department. This department is responsible for the operation, maintenance, and repair of a large municipally-owned boating facility. This department of Public Works is responsible for the operation of the Kenai Boating Facility and coordination between fish processors with leases, independent fish processors, public users, commercial, recreation, and dip net fishermen, and others. They operate a variety of maintenance and operational equipment including cranes, pumps, high pressure washers, graders, front-end loaders, backhoes, and sewage vacuum trucks. They clean, se~ice, and make repairs. They assign the use and collect money for the waste oil disposal, septic disposal, showers, trash, and boat launching at romps. They also grade mad surfaces and parking lots allowing for slopes and drainage. They are responsible to dispense and collect money for petroleum products, and other items for sale at the dock office - gas, diesel, detergent, hydraulic oil, oil, etc. They maintain and operate the rest rooms and showers, operate power tools, operate and maintain the VHF and CB radios and communications system, repair lighting system, perform ca.entry, plumbing, welding, concrete, hauling, and other maintenance work as assigned. They must have considerable knowledge of Coast Guard, ADEC, OSHA, and other state and foderal rules and regulations connected with operating a public boating facility. 132 City Of Kenai Fiscal Year 2003 Operating Budget Fund. 070.60 Boating Facility Description REVENUES Rents anti Leases, Wharfage Petroleum Sales Boat Ramp Fees Transfer from General Fund Miscellaneous Total Revenues EXPENSES Net Income (loss) Add credit from Depreciation Contribution to (from) Fund Balance Projected lapse (3%) Adjusted (Deficit)/Surplus Beginning Fund Balance Ending Fund Balance Original FY2000 FY2001 FY2002 Amended Ac_.~ Acma_l Budqet Budaot 23,500 $ 23,500 $ 23,500 $ 23,500 2,714 4,461 2,500 2,500 35,313 27,396 35,000 35,000 30,609 27,829 30,000 30,000 75,000 71,000 70,000 70,000 3,074_ 2,318_ 1,500 1,500 170,210_ 156,504 162,500 162,500 193,17_4 ...... 117,296 150,748 151,600 (22,964) 39,208 11,752 10,900 '38,296 . 15,332 39,208 11,752 10,900 FY 2002 23,500 3,7O0 27,000 30,000 66,000 1,500 151,700 151.600 100 100 Administration Reemmmended FY2Q03 23,5OO 3,0OO 35,0OO 30,0OO 70,000 1,5OO 163,000 165,169 (2,169) (2,169) 4,522 4,548 4,548 4,955 16,274 15,448 4,648 2,786 47,152 51,8oo $ (100,496_) ....15,83_7 30,878 47,152 , , $ (85,164~)$ 55,045 $ 47,152 $ 62,600 _ 51,80O 54,586 133 City Of Kenai Fiscal Year 2003 Operating Budget Fund: 070- Boating Facility Fund Department: 60 - Boating Facility Account Num. bar 0100 02O0 O250 O300 0400 O450 0500 06O0 o700 080O 0900 2021 2022 2024 2025 2026 4531 4532 4533 4534 4535 4536 4537 4538 4539 4540 4541 4666 4667 4999 5041 5045 5047 8061 8062 8063 8064 9090 DeSedDtlon Salaries and Benefits Salaries Overtime Holiday Pay Leave Medicare Social Security PERS Unemployment Insurance Workers CompensaUon Health & Life Insurance Supplemental Retirement Total Salaries & Benefim Original 12J3112001 FY2001 Budget Ameaded Ac_._c.c.c.c.c.c.cj~ I:Y200,~ Budaet $ 37,806 $ 36,902 $ 36,902 4,058 6,000 6,000 (101) 1,749 1,749 600 647 647 968 907 907 536 743 743 2,614 2,372 2,372 2,625 1,047 1,047 3,570 4,131 4,131 973 750 75O $ $3,649 S 55,248 $ 55.248 Maintenance and Operations Office Supplies 68 400 400 Operating & Repair Supplies 21,812 45,000 45,012 Small Tools/Minor Equipment 4,861 1,000 .1,00O Snack Bar Supplies . . . Computer Software . . . Professional Services 150 200 200 Communications 341 800 800 Travel & Transportation 944 3,000 3,000 Advertising 32 500 500 Printing & Binding - 1,800 1,800 Insurance 5,900 6,000 6,000 Utilities 3,910 6,000 6,000 Repair & Maintenance 4,953 11,000 11,840 Rentals 1,831 1,800 1,800 Equip. Fund Pmts .... Postage . . . Books . . . Dues & Publications 125 150 1 50 Contingency . . . Miscellaneous 322 350 350 Depreciation . . . Grants to Agencies . . . Total Maint. and Operations $ Cauital Outlay & Tranfem Land · Buildings Improvements Machinery & Equipment Transfers Out Total Capital Outlay aq.d Transfers Department Total: 45,249 $ 78,000 $ 78,852 18,400 17,500 17,500 18,400 $ 17,500 $ 17,500 117,298 $ 150,748 $ 151,600 Administration ReGommondod Difference from FYi02 orig. 37,038 $ 136 6,000 - ., . 2,117 368 655 8 165 (742) 1,062 319 314 (2,058) 1,258 211 7,710 3,579 1,000 250 $ 57,319 400 45,000 1,000 . 20O 80O 3,000 500 1,800 5,700 6,000 28,700 2,000 o . 15O . 50O . 95,750 12,100 12,100 165.169 2,071 (300) 7,700 2O0 o 1 50 17,750 (5,400) (5,400) 14,421 Perelntloe _ 0.37% 0.00% 0.00% 21.04% 1.24% -81.81 % 42.93% -86.76% 20.15% 86.64% 33.33% 3.75% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% -5.00% 0.00% 60.91% 11.11% 0.00% 0.00% 0.00% 0.00% 0.00% 42.86% 0.00% 0.00% 22.76% 0.00% 0.00% 0.00% 0.00% -30.86% -30.86% 9.57% 134, FUND: A/C # 2021 2O22 2O24 4531 4532 4533 4534 4535 4536 4537 4538 4539 4667 5041 9090 CITY OF KENAI FY 2003 BUDGET Boating Facility DESCRIPTION Office Supplies Operating and Repair SuD~31ies Fuel, lubricants, oil absorbent boom, cleaning supplies, safety equipment, miscellaneous supplies S.,m. all Tools and Minor Equipment Miscellaneous P...,,r,0fessional Services Water tests Communication , Transportation Harbormaster Conf., safety classes Advertising P,ri,nting and Bindin.q Pdnt launch envelopes, copy machine rental Insurance Utilities Repair and Maintenance Hydro testing, backhoe with operator, crane, inspections Replace buried pipe for pilings Rentals Port-a-potties & other Dues and Publications Harbormaster dues 'Miscellaneous Transfers to Other Funds Central Administrative costs (G/F) 12,000 16,700 DEPT: Boating Facility ADMINISTRATION RECOMMENDED 400 45,000 1,000 20O 800 3,000 500 1,80O 5,7OO 6,000 28,700 2,000 150 5OO 12,100 Keith Kornelis III ~rom: Keith Kornelis ~ent: Monday, April 29, 2002 9:38 AM To: Linda Snow Subject: Kenai Coastal Trail Linda, I received a telephone call from Ken Turner and Pat Fitzgerald, Corps of Engineers, about the Kenai Coastal Trail. They were on a speakerphone. Their comments' * They met with their contracting folks about getting PND as contractors for the project. * There is no way to go directly with PND as contractor. * It is best to go with Tryck, Nyman, & Hayes, TNH, who could hire ?ND as subcontractors. * Going through Portland would be a long shot and they would have to go with Montgomery Watson / Inca who could subcontract to ?ND (If they wanted to). * This is not a unique project so it cannot be considered as a sole source. Sole source would be if over 80% of the design has been completed. * The Corps Hydraulic Designers have concerns about the present design slope and run off. * They will talk to TNH about hiring PND as a Subcontractor * They are working on scope of work. It will include an alternate method analysis. It will also include 4 areas. 1.) Technical aspects - ~easibility and how difficult it will be to build. 2.) Benefits of the 2roject. 3.) Cost of the project. 4.) Consistency with environmental concerns. The Corps will send us a copy of the outline of the scope of work for us to review. They will also call TNH about selecting ?ND as subcontractors on this project. I asked them to notify us before a firm, other than ?ND, is selected. Keith Kornelis kornelis@ci, kenai, ak. us AGENDA KENAI CITY COUNCIL- REGULAR MEETING APRIL 3, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http' //www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: ITEM C: o , SCHEDULED PUBLIC COMMENTS (10 minutes) PUBLIC HEARINGS Liquor License Renewal- PROTEST Eaglechief, Inc., d/b/a- Katmai Motel Restaurant & Lounge -- Beverage Dispensary Liquor License Removal of Objection to Continued Operation and Renewal Spencer W. Ha_n, d/b/a New Peking Restaurant ITEM D: o 2. 3. 4. 5. 6. 7. ITEM E: COMMISSION/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report MINUTES *Regular Meeting of March 20, 2002. ITEM F: CORRF~PONDENCE ITEM G: OLD BUSINESS ITEM H: . NEW BUSINESS ,,, Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 1951-2002 -- Increasing Estimated Revenues and Appropriations by $12,200 in the Terminal Enterprise Fund for Roof Repair. ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney ,3. City Clerk ITEM K: DISCUSSION 1. Citizens (five minutes) 2. Council F. OiECUT1VE SESSION- None Scheduled ITEM L: ADJOURNMENT AGENDA KENAI 'CITY COUNCIL- REGULAR MEETING APRIL 17, 2002 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *Ail items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one mOtion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCttEDULED PUBLIC COMMENTS (10 minutes) o Philppa Sonnichsen/h KPHA Pee Wee C Hockey Team -- Season Update James Shill, E~ Director/Central Peninsula Counseling Services -- Proposed Residential Treatment Center for Adolescents. ITEM C: PUBLIC HEARINGS Ordinance No. 1951-2002 -- Increasing Estimated Revenues and Appropriations by $12,200 in the Terminal Enterprise Fund for Roof Repair. , Ordinance No. 1952-2002 -- Increasing Estimated Revenues and Appropriations by $15,600 in the Council on Aging-Title III Fund. Motion for Introduction Motion for Second Reading (Requires a Unanimous Vote) Motion for Adoption Resolution No. 2002-17 -- Awarding the Bid to Kenai Chrysler Center for a 2002 Police Patrol Car for the Total Amount of $21,606. , Resolution No. 2002-18 -- Pursuant to KMC 22.05.045, Setting the l~.te of Interest to be Included in Notes Taken on Sale of City Lands. , . . , 10. ITEM D- , 2. 3. 4. 5. 6. 7. ITEM E: , ITEM F: ITEM G: ITEM H: , Resolution No. 2002-19 -- Awarding the Bid to Peninsula Roofing, Inc. for Kenai Municipal Airport Roof Repairs 2002 for the Total Amount of $57,126, Which Includes the Basic Bid and Additive Alternate. . . Resolution No. 2002-20 -- Awarding the Bid to Alaska Pipe and Supply for Kena/ARFF/SRE Facility Breathing Air System for the Total Amount of $30,403.28. Resolution No. 2002-21 -- Awarding a Contract to NC Machinery Co. for a Caterpillar 14H Motor Grader for the Total Amount of $273,394. *Transfer of Liquor License -- Kenm Golf Course Cafe, Inc., d/b/a Kenai Golf Course Cafe -- Restaurant/Eating Place to Gary E. & Susan L. Schnelting, d/b/a, The Hole-N-One. *Application for Restaurant Designation Permit -- Gary E. Schnelting & Susan L. Schnelting, d/b/a The Hole-N-One. COMMISSION/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce MINUT~ *Regular Meeting of April 3, 2002. CORRESPO~ENCE oLD BUSXNESS NEW BUSINF~S Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 1953-2002 -- Increasing Estimated Revenues & Appropriations by $3,000 in the Senior Citizen's Tire III Grant Fund for a Grant From the State of Alaska and Transferring Grant Match Money from the Borough Grant Fund. o Approval-- Kenai Golf Course Restaurant a. Cancellation of Lease and Consent to.,.Cancellation of Lease (Kenai. Golf Course Cafe, Inc. and Richard Morgan) b. Sublease Agreement and Consent to Sublease Agreement (The Morgan Family Limited Partnership and Gary E. and Susan L. Schnelting}. .. Approval-- Special Use Permit/Kenai Airport Fuel Services Approval-- Kenai Watershed Forum Memorandum of Agreement Discussion -- Schedule Board of Adjustment Hearing/Appeal of Planning & Zoning Commission Denial of PZ02-15 Variance Permit for an Oversized Sign at 9711 Kenai Spur Highway-- Challenger Learning Center of Alaska. Discussion -- RS~ Seafoods/Request for Reduction in Lease Rates Discussion -- Local Improvement District -- Pillars Subdivision/Report to Council. ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- Personnel Matters ITEM L: ADJOURKMENT :0 I M PACT FAR INLAND -FISHING ACTIVITIES BY CAPTAIN BOB PAWLOWSKI ~ew regulations for Essential Fish Habitat (EFH), promulgated by National Marine Fisheries Service (NMFS), have greatly expanded the agency's jurisdiction from traditional fishery management in coastal areas to non-fishing activities far inland. Timber, oil and gas, mining, home con- erUCtion and local community infrastructure velopment are likely to be impacted by the new regulations which extend the scope and burdens of EFH designations and consulta- tions authorized by Magnuson-Stevens Fishery Conservation and Management Act (FMCA). Under the regulations, many non- fishing activities occurring in a watershed used by species managed by NMFS and regional fishery management councils are now open to comment by the agency if those activities could potentially impact EFH. NMFS is following an open-ended definition that describes all fish habitat as essential, versus following a classical management approach that is based on fishery assessment, as required by the Councils. Essential Fish Habitat is a term introduced in the FMCA in the early 1990s to allow com- ment on activities affecting the spawning and nurturing areas of anadromous and estuarine species managed by the Councils. Coastal development, population pressures, and non- point source pollution in Lower 48 coastal waters were impacting recruitment of herring, winter and summer flounder, striped bass, ~.dfish, and salmon. With these resources being over-fished, it was apparent that NMFS could not rebuild the fisheries by controlling harvest, but needed to influence activities that impacted recruitment. It was a cause with merit as fisheries declined. However, EFH has evolved to New EFH regulations will s[reatly expand National Marine Fisheries Service jurisdiction from traditional fishery man- a~ement in coastal areas to non-fishin~ activities far inland. encompass the complete watershed associated with managed species. Under the new regulation, EFH means those waters and sub- strates necessary to sustain fish for spawning, breeding, feeding, or growth to maturity. EFH is further supported by broad parame- ters on the terms "waters, .... substrates" and "necessary," enabling EFH to encompass the full life history of a species in an ecosystem approach. It also includes special areas called "Habitat Areas of Particular Concern," a designation above "Essential." Under this new regulation, NMFS , is to guide the Councils and the Secretary of Commerce in identify- ing and describing EFH in Fishery Management Plans (FMP); identi~- ing adverse effects on EFH; and identi- fying actions to conserve and enhance EFH. NMFS is also developing a (Continued to Pa~e 8) Alaskans Launch Full-Court Press to Get ANWR Vote As the debate on Capitol Hill intensifies on a national energy bill, Alaskans turned up the heat to convince the Senate to include ANWR as a centerpiece of the legislation. "As we approach this key vote on the Energy Policy Act of 2002, we urge you to carefully weigh the facts," Governor Knowles and Lt. Governor Fran Ulmer wrote in a letter to every Senator which argued that "careful development and effective protection of resources can coexist" in ANWR. The Knowles-Ulmer letter noted that America sorely needs the oil and gas from both ANWR and a natural gas pipeline project and that the state administration would not (Continued to pag'e 5) RDC in Juneau 3 Alaska Exports q Minerals Report q EPA's lani speaks 5 RDC News Di~est 6 industry Overview 7 EFH 8 Le:~islative Fly-in 9 President's Message 10 ~NERGY POLICY MAY COME DOWN TO CONFERENCE COMMITTEE (Continued from paffe .1.) , , , ~olerate any attempt to trade one for the other. Meanwhile, Senator Frank Murkowski has met with President Bush and has been heavily lobbying virtually every undecided Senator on the issue. Arctic Power has launched a full- court press at those. Senators and RDC has urged its members and their contacts in the Lower 48 to pull out all the stops to convince them to in- clude ANWR in the energy policy. As of mid-March, pro- drilling forces were still working to achieve the 60 votes necessary in the Senate to vote ANWR into the energy bill. Senate Leader Tom Daschle has promised to filibuster any attempt to put ANWR into the package. Should the Senate pass an energy bill, with or with- out ANWR, it will go to a conference committee to be reconciled with the House energy bill, which passed in August 2001. That bill, HR 4, recognizes both ANWR and conservation as major elements of a comprehen- sive energy policy aimed at reducing America's de- pendence on foreign oil. In the event that ANWR is not included in the Senate package, the final stand and last chance for Alaska will come in the conference committee, an ad hoc panel composed of House and Senate confer- ees convened to resolve differences on major and controversial legislation. House conferees are expected to uphold the. 907) 276-0700 111 i ,, i componeiiiS'"0f'HR 4 when negotiating with the.~c0n- ferees from the Senate. A compromise product negotiated by the commit- tee would then return to each chamber for approval or disapproval. The House will have more members in the con- ference committee and is expected to fight hard to keep ANWR. "The White House can play a significant role in the conference committee process, and we expect that President Bush will weigh in heavily in support of retaining the House lan- guage,'' said Kim Duke, Executive Director of Arctic Power. "The President understands the national security implica- tions of our increasing dependence on foreign oil and fully supports in- creased domestic produc- tion. He knows we need to keep the jobs and money we export every day as we buy oil from Saudi Arabia, Iraq and others." In the event that the Senate passes an energy policy without ANWR,. Duke urged ANWR pro- ponents to encourage President Bush to work the conference committee hard. If ANWR fails to make the Senate bill, please call, write or fax the White House and tell the President you want to see the energy bill come out of conference committee with language to open the Coastal Plain of ANWR to oil and gas development. April 2002 Resource Review ULMER ADDRESSES RDC Lt. Governor Fran Ulmer spoke before RDC March qth. She suff:~ested a comprehensive audit to resolve permittinff issues. .?' o I'1 MI.M MURKOWSKi'S WASHINGTON REPORT HITS NUMEROUS ISSUES Senator Frank Murkowski outlined important state and federal issues when he spoke before RDC February gist. EPA's IANI WANTS ToP ALASKA PRIORITIES John Iani, the newly- appointed administrator of the EPA's Region 10, encour- aged Alaska industry to establish real priori- ties for EPA to address rather than a laundry list o£ numerous proiects. "Give us your real priori- ties, nor 40 proiects but those you really want done and we'll try to see that they happen," Iani told a packed ~ RDC breakfast forum in 'February.. Iani reaffirmed his goal of streamlining the permitting process and delegating authority over environmental issues to state programs. He spoke favorably of partnering with Alaska's Department of Environmental Conservation and suggested industry work to keep its good relationship with the state. "Trying to take out DEC would be a bad move," Iani warned. "The EPA is the 800- pound gorilla that would step in and I'm here to tell you that you don't want a guy in a blue suit from Seattle trying to tell you what to do." Iani, who was raised in Kodiak, listed Alaska oil and gas projects as among Region 1 O's top three priorities. Page 5 ESSENTIAL FISH HABITAT IS NOT NECESSARILY ESSENTIAL (Continued from Page 1) Supplemental Environmental Impact Statement (SEIS) to define the impact of EFH in FMPs. Until the impact of EFH is defined in the SEIS and EFH is included in the management plans, non- binding recommendations from NMFS will influence decisions of other agencies having oversight on a project. Those agencies must either use NMFS recommendations in permitting a project or explain why they disagree. Once EFH is approved as part of a FMP, recommenda- tions become binding. To proVide recommenda- tions, NMFS is interpreting and posting "life history" data for managed species. The maps for Alaska, posted at www. fakr. noaa. gov/maps/, help define the fishery habi- tat, but do not necessarily exemplify how essential that habitat is. Of particular note is the map of salmon, show- ing the predominance of watersheds throughout Alaska. With over 3,000 rivers in Alaska, that is a sig- nificant burden to objectively determine the difference between fish habitat and essential fish habitat and the potential of actions to adversely affect the fishery. What can be done with the new regulations? First, it is imperative to recognize the Council process is allocation- dominant. Rights to harvest imanaged fishery resources are decided in each meeting. Given that EFH has to be in- cluded as part of an FMP, it is essential that non-fishery in- Page 8 terests join in the Council process and help define the extent of EFH for relevant FMPs (e.g. salmon). Secondly, it is important for vested interests to help support science in the man- agement decision of what is EFI--I and not allow decisions based on limited data. NMFS has managed the fisheries effectively in Alaska through resource assessment and con- servation. It has a proven record in the fishery, but needs good science to make good decisions. EFH should support fishery management and conservation, but not preservation, as seen by law- suits associated with Marine Mammal Protection Act or Endangered Species Act listings. Third, Alaskans need to work with their congressional delegation which has worked diligently to ensure the sustainability of our fisheries. Alaskans share a common interest in seeing their land and natural resources respon- sibly developed while sus- taining the state's vital fisheries and local economies. Alaska is a great state with much potential. Let us not block that potential by meas- ures that are not supported with good science and are too broad-brushed to be truly "essential." Captain Bob Pawlowski serves With over 3,000 rivers in Alaska, NMFS will be challenged to objectively deter- mine the difference between fish habitat and essential fish habitat, as well as the potential of actions to adversely affect the fishery. LAWSUIT FILED AGAINST EFH RULE on the RDC Board of Directors . implement the role through a Supplemental Environmental Impact and is Alaska Program Manager Statement that will guide fishery management plans for Alaska. for Thales Geosolutions (Pacific), Last year RDC urged NMFS to identify and describe EFH Inc. Bob is surveying fishery through specific criteria that limits its extent to offshore marine or habitats in Alaskan waters, estuarine environments that are truly essential, for fish. Three counties in two Northwest states and several industry associations have filed a lawsuit against the U.S. Department of Commerce challenging the Final Rule issued earlier this year by the National Marine Fisheries Service (NMFS) on Essential Fish Habitat (EFH). The Alaska Forest Association, the National Association of Home Builders and several counties in Idaho and Washington, say the government did not adequately consider the adverse effects of the rule on non-fishing entities and that it will result in ex- cessive costs, delays and restrictions on land use and development activities that are near any waters capable of sustaining fish. The nde will directly affect any industry in Alaska operating on land containing rivers, streams and wetlands that are subject to broad EFH designations. Industry activities are heavily regulated by federal and state laws. But the new rule, once implemented, will bring additional oversight by NMFS of non-fishing activities far inland and previously outside its jurisdicti6n. Projects potentially impacting EFH will be re- quired to undergo consultations with NMFS, which in turn will issue recommendations to state and federal agencies having authority over the activity. The North Pacific Fisheries Management Council is preparing to April 2002 Resource Review www. akrdc.org RD(:::: Focus IN JUNEAU 15 ON PERMITTING AND REGULATORY ARENA As we have throughout the past several legislative sessions, RDC remains focused on the regulatory and permitting arena. This session three different issues, each with important technical ramifications to re- .. source development in Alaska, have risen to the top of the RDC agenda: Alaska Coastal Management Program (ACMP) reform, temporary water-use authorizations, and best avail- able technology for oil spill prevention and response. Four different bills have been intro- duced to address these issues. Collectively they represent a significant commitment to sound, streamlined regulations that protect the environment while providing for responsible economic development. FirSt is reform of the ACMP. Two bills have been intro- duced to address this issue: SB308, by Senator Gene Therriault, and HB439, by the House Oil and Gas Committee. Together these bills remove the program's redun- dant and ineffective petition process, allow for the consistency review of a potential gas line project on the North Slope to be phased-in and restrict coastal districts from adopting state statutes by reference into their local plans. Each of these measures serves to provide industry with reg- ulatory certainty and more predictable timelines. Neither bill compromises the ability of the public or a coastal district to participate in the consistency review process. Both pieces of legislation have wide spread industry support and are not op- posed by the Department o£ Governmental Coordination. RDC has also worked closely with the Department of Natural Resources (DNR) over the past two years to promote clear statutory authority for temporary water-use authoriza- tions. The House Resources Committee introduced HB420 this session allowing DNR to administer the temporary water-use program as they have for the past twenty years. DNR, in conjunction with the Department of Environmental Conservation (DEC) and the Department o£ Fish and Game, issues a temporary water-use authorization only after careful consideration o£ its potential impact to fish and wildlife resources and the environment. This program is an important tool in streamlining the process for state approval o£ water use. Construction projects all across the state and ice road construct;(,,~ o~ the North Slope are the most common users of temporary water-use authoriza- tions. Without this tool, busi- nesses would be required to receive a formally adjudicated water right from DNR for nearly every use of state water- a process sure to unnecessarily delay projects across the state. On .February 1, 2002, the Alaska Supreme Court ruled that two provisions governing best available technology (BAT) deter- minations were contrary to the Court's interpretation of the Legislature's intent in enacting Alaska's oil spill prevention and response legislation. Without clear legislative support for the regulations governing BAT and C-Plans, companies seek- ing new plan approvals will face significant delays and uncer- tainties, and DEC will be forced to allocate valuable resources to another rulemaking process. The Senate Resources Committee introduced SB343 as a di-. rect response to the question raised by the Alaska Supreme Court regarding the Legislature's intent with respect to BAT requirements in C-Plans. The bill provides DEC with the flexibility necessary to fairly apply BAT requirements over Alaska's diverse environmental and operational conditions while maintaining Alaska's cutting-edge spill prevention and response regulations. RDC has worked closely with the Alaska Oil & Gas Association to move this bill forward. RDC is committed to working toward a reasonable; science-based middle ground between environmental protection and economic development. This philosophy is particularly relevant in regard to Alaska's regulatory regime. Without clear, streamlined, predictable environmental regulations, we can not expect to attract private-sector investment, nor can we expect to enhance economic development opportunities in Alaska. Finding the right balance between economic development and environmental protection is a constantly evolving process. In Alaska this balancing act is often on the center stage of our public policy debates. The Legislature's proposed actions to reform the ACMP program, to support DNR's temporary water-use program, and to validate DEC's best available tech- nology regulations are all important steps in keeping environ- mental protection and economic development in proportion. 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