ITEM TITLE:
City Manager’s Report 4-20-2021
SUBMITTED BY: Mark Detter, City Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Receive and File.
SUMMARY STATEMENT:
The following developments have occurred in the past two weeks:
• Stratton Edwards with the Capitol Hill Group received notice from Congressman Young’s office that appropriations requests were due the week of April 5th-9th. Mr. Edwards worked with myself and other staff to develop background and cost estimates for two projects:
o The $20 Million sewer force main project (Requested $10 Million Dollars).
o The $10-12 Million small boat harbor reconstruction (Requested $5 Million Dollars).
The requests were also shared with Senator Sullivan and Senator Murkowski’s offices.
• A2A Rail Project - Jon Katchen A2A Rail project leader, former Lt. Governor Mead Treadwell, and engineers from HDR (the consulting engineer performing rail feasibility study) met with staff via G2M on 4/7/21.
Initial results indicate Valdez is a high cost option, but viable alternative for rail. Permitting challenges are also an issue (although other parts of the state appear to have greater challenges related to permitting).
HDR Engineering made some adjustments to the rail path to avoid conflicts with residential neighborhoods, however, even with such adjustments, there is no way to create a rail path without land use compatibility issues.
Further discussion with local groups including Alyeska, CVEA, Petro-Star, and the City will need to occur. A2A has not conducted on-site feasibility in Valdez and plans to make those on-site inquiries in the future (no timeline to date).
A few other observations related to rail:
o The Presidential Permit remains intact, but is subject to review by the Biden Administration.
o The A2A groups believes rail in Alaska is not a single path question or dilemma. Rail can be developed to multiple destinations within the State.
o Currently, rail to Alaska is not in the top criteria for any proposed major infrastructure funding. However, it is possible that shifting Department of Defense strategies could aid the rail development discussion in Alaska.
• In terms of the City of Valdez legislative goals, the State legislative session is progressing positively.
o The closure of the DMV office in Valdez and 5 other cities has been eliminated from the State’s FY 2022 Budget. Some legislators are working to create permanent statutory language that compels State government to maintain offices in Valdez and other locations previously mentioned as candidates for closure. See correspondence from Representative Fields office (provided by Valdez lobbyist Kim Hutchinson).
o The School Bond reimbursement program is on course to be funded in FY2022.
o Municipal fiscal responsibility for misdemeanor prosecutions appears to have no traction in the legislature.
o Marine Highway funding should be consistent with FY2021.
o Representative Rauscher has spoken personally with the DNR Commissioner about the Lowe River Permitting issue.
• The demolition of the Pipeline Club and Land Shark building will be combined into one bid late summer/early fall period.
• Access limitations on South Harbor Drive to the seafood processing plants are under discussion.
• My next two weeks will focus on the Comprehensive Plan joint work session with Valdez Planning Commission, senior housing discussion, and fire operations consultant proposal review.