ITEM TITLE:
#25-22 -Authorizing the Valdez City Manager to Apply for the 2025 Port Infrastructure Development Program (Pidp) Grant in an Amount Not To Exceed $4,000,000
SUBMITTED BY: Jeremy Talbott, Ports and Harbors Director
FISCAL NOTES:
Expenditure Required: $800,000.00
Unencumbered Balance: $800.000.00
Funding Source: 350-0319-58000 Projects Planning Reserve
RECOMMENDATION:
Approve Resolution No. 25-22 authorizing the City Manager to apply for federal funding through the U.S. Department of Transportation’s 2025 Port Infrastructure Development Program (PIDP) in an amount not to exceed $4,000,000, to support design and planning for improvements at the John Thomas Kelsey Dock and Sea Otter Site, and to commit the required local match of 20%.
SUMMARY STATEMENT:
The U.S. Maritime Administration (MARAD) has released a Notice of Funding Opportunity for the 2025 PIDP grant cycle. This competitive federal grant program provides funding to improve the safety, efficiency, and reliability of port infrastructure and intermodal connections. Eligible activities include design and planning for infrastructure that supports goods movement, public port access, vessel operations, and economic development.
The City of Valdez intends to submit a grant application requesting up to $4,000,000 to fund design and engineering work for improvements at two of its publicly owned marine facilities: the John Thomas Kelsey Dock and the Sea Otter Site.
These facilities are central to the City’s long-term strategic plans and are identified as priority infrastructure in the Valdez Comprehensive Waterfront Master Plan, Valdez Strategic Economic Plan, Plan Valdez Comprehensive Plan, and aligns with City Council Priority number four Economic & Workforce Development, Strengthening the local economy and job opportunities. The Council’s 2024 initiatives focus on bolstering the maritime and outdoor recreation sectors, promoting tourism (including improving infrastructure to support visitors), and other business development strategies to diversify and grow Valdez’s economy.
The proposed PIDP-funded project will bring both sites to approximately 35% design completion (shelf-ready) and will include:
• Expansion of berthing and upland capacity at the Kelsey Dock to accommodate larger vessels (cruise ships, Alaska State Ferries, icebreakers, Coast Guard cutters) and facilitate shared use with the Alaska Marine Highway ferry terminal.
• Development of the Sea Otter Site to create an alternative cargo staging and offloading site, improve marine support services, and relieve congestion in the inner harbor-especially during military operations or emergencies that restrict access to the Valdez Container Terminal.
• Upland planning for vessel maintenance, winter storage, and heavy-lift Travelift operations, improving the City’s long-term ability to serve both commercial and government marine users.
The anticipated federal share is up to $4,000,000. PIDP guidelines require a 20% minimum local match, though the City qualifies as a rural and small-port applicant, making it eligible to request a reduced match under federal guidelines. The City’s match commitment may include a combination of cash, state or third-party partner contributions, and eligible in-kind services.
Staff will continue working with engineering consultants and stakeholders to finalize the total project cost and match amount prior to submission. Grant applications are due later this year and must include a formal resolution authorizing the City Manager to apply for and execute related documents.
Staff recommends adoption of Resolution No. 25-22 to authorize the application submittal and demonstrate the City’s commitment to funding obligations. This grant represents a timely opportunity to invest in the future operational resilience of the Port of Valdez while supporting critical sectors such as tourism, cargo, fisheries, and national defense logistics.