Memorandum 18-004 Planning Assistance to States Program Study

Memorandum 18-004

TO:                        Mayor Zak and Homer City Council

THROUGH:        Katie Koester, City Manager

FROM:                 Bryan Hawkins, Port Director/Harbormaster

DATE:                   January 3, 2018

SUBJECT:          Ordinance 18-03 Planning Assistance to States Program Study     

The Homer harbor expansion project dates back to 2004 when the City of Homer first entered into a contract with the U.S. Army Corps of Engineers and the State in a General Investigation Feasibility study. Because the Corps is a Federal agency, there are requirements and conditions that must be met in order for the study to score on a federal level for funding for both design and construction. Ultimately, these projects result in a benefits verses costs (BC) rating. When the City decided to shelve the project in 2009 the estimated BC ratio was .26. At the time, a project needed a +3.0 ratio to be competitive for federal dollars.

City Manager Koester and I met with the Corps in November to discuss the possibilities and options for resuming the harbor expansion study in Homer. After reviewing the previous work that had been done on the project, the Corps recommend that the City of Homer work with them to conduct a Planning Assistance for States (PAS) preliminary study to determine if there have been enough changes to warrant resuming and completing the original General Investigation Study. The cost to Homer will be $50,000 and the Corps will be responsible for the other $50,000 ($100,000 total). The Corps estimates that the PAS study will take between 4 to 6 months to complete, once their federal funding is approved.

After reviewing the original study internally and with the City’s term contract engineering firms, R&M Consulting and HDR, staff believes conditions for construction are more favorable than in 2004, in both the availability of local building materials and increased demand for moorage from the large vessel fleet. The PAS will demonstrate what has changed and improved in Homer since 2004 and where the assumptions made in the first study were off track.  Positive findings from the PAS preliminary study will give confidence to stakeholders that reinstating the General Investigation Study will produce a BC that justifies the investment of federal dollars in Homer.

The economic impact of Harbors are felt locally, regionally and nationally. This study will demonstrate these benefits while at the same time proving how the Large Vessel Harbor can be built for far less money than was predicted in 2004. This relatively modest investment of $50,000 is the best way to get the Large Vessel Harbor Expansion Project recognized as a national project and meet the needs of the fleet and community.

Enc;

Sample Planning Assistance to States Agreement
Port and Harbor Commission Recommendation
Homer Large Vessel Harbor CIP page