Sitka Harbor Department

Master Plan Part 1 Infrastructure Part 2 Financial Plan developed in 2012 PND Engineers assessed all infrastructure managed by the Harbor Department and determined the remaining service life Project costs were determined in 2012 dollars A Capital Improvement Project Plan was developed Northern Economics and CBS Finance Director developed the financial model on how to fund replacement All recommendations were based upon moorage rate increases

Brain Storming PHC Many work sessions were held with the goal of reducing the recommended rates. Certain infrastructure was taken out of the Master Plan e.g. tender docks. (tourism revenue to fund) Grant assumptions. CBS would have an 80% success rate receiving grants for the projects which currently fit within the Harbor Grant program. (currently $28,000,000)

MOORAGE RATES 1990 thru 2015 (per foot per year)

A 40’ vessel paid $912.00 per year from 2006 thru 2012 CBS MastER PLAN 2012-$1,267.20 2013 no increase 2014-$1,382.40 2015-$1,435.20 2012-$1,267.20 2013-$1,617.60 2014-$1,968.00 2015-$2,318.40

Preparing for tomorrow The transient float will be replaced by March 15th of 2016. The State of Alaska funded ~ ½ the construction project costs ($2.7 million) through the Municipal Harbor Grant Program. The next scheduled project is Crescent Harbor Phase 1 (timber floats). We have applied twice and have come in 3rd place for funding both times. Overall funding from this program in FY17 does not look good. Options: Reduce the $28 million in assumed grant funding (80% success rate)? This would require not replacing certain infrastructure. Reevaluate the moorage rates? A new financial model with moorage rate increases would need to be developed, to sustain infrastructure outlined in the Master Plan.

Harbor Decommission worst case scenario develop an “exit plan” It will take several years to relocate vessels from one harbor to another