PLEDAC EDAP: Marine and Maritime Industry 1
Marine & Maritime Industry
EDAP Subcommittee
April 12, 2011
1. Purpose and Process
a. At the first meeting, Assembly Member John Harrington and Borough Planning Director Tom Williams presented the purpose of the meeting.
[KGB -- INSERT WRITTEN STATEMENT OF PURPOSE]
b. A 4/11/2011 instruction via email regarding Assembly consideration of projects, “proposals need to be a part of the Maritime Industry group submission, that the Borough is not taking individual projects.”
[KGB -- INSERT COMPREHENSIVE TIMELINE FOR THIS PROCESS]
2. Narrative – [KGB PLANNING DEPARTMENT – INSERT NARRATIVE]
3. Infrastructure Projects to Implement
a. Rainforest Island Ferry Service – passenger and freight service – a basic industry
i. Needs:
1. Letters of support from industry and government customers
ii. Floating pier in Hyder; $500,000 connects to rapidly deployable floating ports and harbor structures (floating port structures for manufacture in Ketchikan).
iii. Contact Person: Kent Miller
iv. Synergy with other Ketchikan industries
1. Visitor industry and Marine Transportation – increase traffic to Ketchikan
2. Shipbuilding and repair – refurbishments and upgrades of an OSV to ferry service; approximate value $700,000.
b. AmphibAlaska - design and marketing assistance - $200,000 Contact person Bob Burke
c. MTVA Hybrid Training Tug
i. Complete detail design - $260,000 to be complete and delivered in 12 months
ii. Design, build, and operate a $17 million training vessel in Ketchikan – this project will provide ship construction opportunities and on-going, on-board training of pilots to able bodied seaman for operating hybrid, Z-Drive tugs. Students would come from Alaska, North America, International locations
d. Shipyard Improvement Program - Steel Shop
i. The next phase of shipyard improvement program is the construction of the Steel Shop at an estimated cost $12.1 million. This project has an approved FONSI and detail design is complete for ½ of the facility. The project is ready to commence construction on phase 1 concurrent woth final design on phase 2 with total project complete in 2 years upon award of contract.
ii. Borough actions – support federal and state grants and/or appropriations. Provide $125,000 matching funds. Contact person; Doug Ward
e. Rapidly Deployable, Affordable Ports and Harbor Structures: Concept Design
i. Demand – local, regional, Arctic and global demand for modularized floating port assets for underserved coastal and river communities, resource and energy development projects, disaster relief, supply, resupply
ii. Needs – Market study, Finance plan, design, prototype, production.
iii. Borough actions – provide matching funds in the amount of $150,000 to other federal or state grants or appropriations to complete market study and concept design. Contact person Doug Ward
f. Floating, off shore wind generator.
i. The Wind Turbine Company out of Bellevue, WA is seeking funding and a location to manufacture and assemble floating wind generators to serve small communities in Alaska. Applications have been made to AEA, NOAA SBIR, and Department of Energy for concept and feasibility design, economic analysis, detail design and construction of the prototype.
ii. Borough Actions: provide $125,000 match to grant applications; facilitate establishing manufacturing and assembly in Ketchikan. Contact person: Doug Ward
g. Ports and Harbors Projects
i. Ward Cove – boat launch ramp
ii. Saxman Public Harbor – match funds for planning/design -- $350,000 (Contact Jason Custer for detailed proposal)
iii. Drive down ramp to float
iv. Continue to solicit ports and harbor projects from all existing or potential Ketchikan sites, owners, or operators.
v. Saxman Seaport Terminal – matching funds for new warehouse roof and yard improvements -- $1,000,000 (Contact Jason Custer for detailed proposal)
vi. Drive down dock to net float w/ crane at Bar Harbor
1. The Maritime Focus Group supports implementation of this capacity. See Fisheries Focus Group for action recommendation.
4. Borough actions
a. Identify KTNs marine economy – who are the customers, what do they need to be competitive
i. Identify marine and maritime activities and opportunities in other regional industry sectors; mining, fisheries, mariculture, timber, energy, visitor, oil and gas.
ii. Commence Ketchikan maritime cluster analysis and mapping; cost $150,000 (develop scope and request for proposals from qualified vendors). Project completion 12 months.
iii. Inventory Borough resources capable of supporting this initiative; i.e. GIS, mapping, permitting, zoning, list of business, etc.
1. Identify and publicize inventory of Ketchikan municipal services supporting marine industries.
b. Assist in development of marketing material for Ketchikan’s maritime industry cluster, including ports and harbors, marine industrial support vendors and contrators, marine vessel operators, industrial waterfront owners and ship and boat builders and repairers.
i. Borough Action; provide $75,000 to assemble and publish on-line information.
c. Link Workforce Investment initiatives to Economic Development projects and initiatives
d. Supporting creation of a Southeast Alaska Regional Advisory Council (SERAC) to the Alaska Workforce Investment Board (AWIB) through formation of a Maritime Regional Workforce Funding Partnership with the National Fund for Workforce Solutions –
i. Host a workshop with (AWIB) WREP Committee and staff with National Fund Staff and SERAC participants $25,000 plus In-Kind and industry match and support in spring of 2011
ii. provide a resolution for same – ASAP.
e. Finance
i. Create a Maritime Enterprise Fund for financing marine infrastructure projects
ii. Study use of Tax Exempt Bonds for financing marine maritime projects
iii. Study formation of Alaska Port Authority – support legislation authorizing ability to levy taxes
iv. Retire bond issue for sequestered fish tax
1. Fish tax can support $14 mn worth of projects (see fisheries)
f. Review, update and implement Central Gravina Island Area Plan
g. Review, update, and implement Waterfront Comprehensive Plan
i. Establish appropriate zoning to facilitate commercial and industrial waterfront uses
ii. Acknowledge value of public owned tidelands
h. Review and participate in Alaska Regional Ports and Harbor study and initiatives
i. Participate in initiative and update Ketchikan ports and harbors availability and needs as identified in 2010 Report
i. Coastal Zone Management –
i. Support maintaining the program as it is now- Ketchikan does not support community veto powers (check for correct wording).
j. Maintain an authoritative library of socio-economic, environmental, business, cultural, and software resources (ex: IMPLAN) for grant applications, consultants, and private enterprises
i. Consultants charge all Ketchikan projects for this analysis during project scoping, NEPA, grant applications, and end up duplicating research and rewriting about Ketchikan. This will reduce duplication of efforts, and decrease front-end project costs.
k. Host an online site for access to a library of marine/maritime studies, plans, projects and project information.
i. Establish on-line industry sector collaboration capacity
l. Identify and encourage effective public private partnerships for marine infrastructure development and operation where private investment cannot tolerate all risk.
m. Identify market opportunities and competitive advantages of trade through Port of Prince Rupert.
i. Provide report of findings from April trade mission to Prince Rupert
ii. Support City of Saxman Southeast Alaska Transshipment Feasibility Study
n. Establish free trade zones in Ketchikan
i. Identify potential sites and applicants
o. Identify intermodal and rail links to domestic and foreign markets
i. Saxman rail barge loading, Ward Cove, Gravina, others
ii. Pursue City of Saxman Southeast Alaska Freight Transshipment Feasibility Study
p. Support marketing of Ketchikan’s ports, harbors and marine industries
i. Marine and Port Technology Conference in Ketchikan – Fall of 2011 or Spring of 2012 – work with KVA.
q. Notify local businesses of public contracting and procurement opportunities in work scopes
i. Encourage outside contractors to hire and buy local through adoption of municipal HUBZone contracting opportunity program.
ii. Examine government procurement processes, and consider modifications to facilitate increased local hiring and buying.
r. Support creation and adoption of a statewide Marine/Maritime Policy and recognition of Marine/Maritime as priority industry sector through resolution.
s. Research emerging manufacturing processes (ex: additive manufacturing) and best practices. Complete feasibility study comparing costs, benefits, and competitive advantages of adaptation/implementation for Ketchikan’s shipbuilding/maritime technology industry.
t. Support expansion and recruitment of marine industry supply chain vendors and subcontractors in Ketchikan; structural steel, marine electronics; etc.
u. Develop and implement strategies to attract more maritime industry professionals to live and homeport in the Ketchikan area (Sea Scouts program, harbor development, investments in maritime workforce, recruitment program).
v. Maritime Response Vessel (MRV). – Contact: Andrew Spokely
i. Assist in the development of a community need profile, with an emphasis on the community role of the use of the vessel.
ii. Assist with the development and initial implementation of marketing the concept to rural Alaska communities.
w. Winter home port for Bering Sea and Gulf Fleets in Ketchikan. – Contact: Andrew Spokely
i. Development of market model.
x. Modular Float Concept – Marketing. Contact: (?)
y. 18 Megawatt wind farm at Dotson point. – Contact: Andrew Spokely
i. Wind study tower.
ii. Design and develop integration with current hydro systems.
z. Mariculture assessment of existing Ward Cove facilities. – Contact: Andrew Spokely
i. Infrastructure needs.
aa. Regional harbor facilities assessment.
i. Joint venture between Ketchikan Ship Yard, Ketchikan City Harbor, Ward Cove Industries, City of Saxman, and other entities.
ab. Supplemental marine support industries study. Contact: Andrew Spokely
i. What does a marine fleet need from a home port?
ac. Connell Lake hydro proof of concept and feasibility study. Contact: Andrew Spokely
ad. Industry led mine training for workforce development. Contact: Andrew Spokely
ae. Bio diesel pilot plant. Contact: Andrew Spokely
5. Project Selection Criteria
a. Catalogue of agency and grant criteria
i. What workforce improvements are needed to support the project during long term operations? What are the legacy jobs?
ii. Create a catalogue of agency investment criteria for local grant writers and to use as a baseline for selection of KTN investment criteria. Seek common acceptance in local planning and decision making bodies.
iii. Decision makers need defensible and measurable criteria for project selection.
iv. Development plans, policies must be nimble enough to adjust to emergent opportunities.
v. How will investment be leveraged with new public and private investment, value added activities in KTN, new employment, etc.?
vi. What actions or steps are required for project implementation?
1. See FTA Project Manual for project steps
vii. Different projects will require varying levels of support or needs and economic returns– state what they are.
viii. Does the project have an industry sponsor(s) or participant(s)? Who are they, and what is the industry role?
ix. Identify project customers and a finance plan. (Public funding may be a part of the finance plan.)
x. Is the project a Basic Industry? Does it bring in money from outside KTN, both investment and/or spending?
xi. Is the project market driven?
xii. Will the project impact market price in local, distant, or foreign markets?
xiii. How does the project tie Ketchikan to the global market?
1. Encourage markets that improve competitiveness through increased productivity and local value-added activities.
xiv. What are the indirect and induced impacts? (Multiplier effect.) To what extent are payroll dollars subject to recirculation within the community? Priority should be given to projects that will increase Ketchikan’s direct and induced employment and purchasing multipliers as calculated in IMPLAN.
xv. Does the project create, foster, or take advantage of innovation?
xvi. How many jobs are created? How do rates of pay compare to median household income (MHI) or per capita income (PCI) levels for the community, the region, Alaska, and the US?
xvii. Describe the interrelation between economic, social, and environmental benefits.
xviii. If possible, provide benefit-cost or cost-effectiveness analysis. Determine a benefit-cost ratio for the investment. Consider adherence to current federal BCA guidelines and discount rates. (OMB Circular A-94).
xix. Provide documentation of anticipated project costs.
xx. Identify all project beneficiaries. Does the applicant provide letters of commitment from participating businesses/agencies?
xxi. Identify long-term maintenance and operations costs. Is there a maintenance plan and/or resolution in place?
xxii. Is the project financially self-sustaining? If so, elaborate. (Provide sustainability plan, business plan, etc.)
xxiii. Will this project require subsequent investments? If so, identify additional investment needed, and funding sources.
xxiv. Describe the extent to which the project is “cross-sectoral.” How does the project impact and support other industries?
xxv. How does the project enhance or build upon existing local/regional strengths and successes?
6. Alignment with Established Criteria: Group noted that projects should demonstrate alignment with established priorities and that Borough EDAP should be linked to other local, regional, state, and federal planning initiatives:
i. CEDS – 5 year update
ii. JEDC/USDA Maritime Action Plan
iii. Ketchikan Legislative Liaison requests
iv. Projects supported by resolutions
v. State DOT and USACE port and harbor needs lists
vi. Alaska Partnership for Economic Development – Alaska Forward
7. Next Meeting Date
a. Friday noon - place to be announced.
PLEDAC EDAP: Marine and Maritime Industry 1