(907) 443-6619 Fax (907) 443-5473 AGENDA NOME PORT

City Manager Tom Moran Port Director Joy Baker

Harbormaster Lucas Stotts

Nome Port Commission

Jim West, Jr., Chairman Charlie Lean, Vice Chairman

Doug Johnson Mike Sloan

Seat D Vacant Megan Alvanna-Stimpfle - Secretary

Tony Cox

102 Division St. P.O. Box 281 Nome, Alaska 99762

(907) 443-6619 Fax (907) 443-5473

AGENDA NOME PORT COMMISSION

MARCH 31, 2016 REGULAR MEETING ~ 7:00 PM

COUNCIL CHAMBERS

I. ROLL CALL

II. APPROVAL OF AGENDA III. APPROVAL OF MINUTES

02.18.16 Regular Meeting - handout

IV. CITIZENS COMMENTS

V. COMMUNICATIONS

Feb 2016 AK Business Monthly Arctic Port Story

02.22.16 Letter - Lean/Baker to RADM Glang re: Marine Survey Work

02.29.16 Letter - City to FEMA re: 2nd Appeal Delay Cape Emergency Repairs

03.02.16 Letter - FEMA to City re: Resolution of PW17 Appeal on Cape Jetty

03.03.16 Letter RADM Glang to Lean/Baker re: Marine Survey Work

03.03.16 Murkowski News Release Arctic Port Discussion in Capitol Hearing

VI. CITY MANAGER REPORT

03.25.16 City Manager Report VII. HARBORMASTER REPORT

1st QTR Report Port/Harbor Operations - handout

VIII. PORT DIRECTOR REPORT/PROJECTS UPDATE

03.24.16 Port Director/Projects Status Report

IX. OLD BUSINESS

X. NEW BUSINESS

Mid Dock Ramp Retrofit Design Sketch

Port & Harbor Project Prioritization Recommendations

XI. CITIZENS COMMENTS

XII. COMMISSIONER COMMENTS XIII. NEXT REGULAR MEETING

April 21, 2016 - 5:30 pm

XIV. ADJOURNMENT

24 Alaska Business Monthly | February 2016 www.akbizmag.com

Call of the Arctic Ports

TRANSPORTATION

Call of the Arctic Ports

Nome and Port Clarence emerge as contendersBy J. Pennelope Goforth

A warming climate with a decreasing ice pack and an increasing transit season are making commercial ship-ping, tourist travel, and resource explora-tion a reality in the previously frozen Arctic Ocean. A network of Arctic ports across the top of Alaska to support the increasing ship-ping and commercial activity seems a natural progression resulting from the opening of the Northwest Passage and increased use of the Northern Route. But the region is an unforgiv-ing one with none of the safety nets of modern

times, especially in the US and Canadian Arc-tic where only the Inuit have made themselves at home. Alaskas Arctic encompasses a coast-line over 3,500 miles longthe distance from Key West, Florida, to St. Johns, Newfound-land. According to the US Arctic Research Commission, the Arctic Boundary as de-fined by the Arctic Research and Policy Act includes all United States and foreign territory north fo the Arctic Circle and all United States territory north and west of the boundary formed by the Porcupine,

Yukon, and Kuskokwim rivers; all contigu-ous seas, including the Arctic Ocean and the Beaufort, Bering, and Chukchi seas; and the Aleutian chain, which boundary is demarcated by the Contiguous Zone limit of twenty-four nautical miles.

Geographically, with few exceptions, the Arctic coast of Alaska is a shallow slope ex-tending out to the Arctic Ocean. Bounded by two seasthe Chukchi Sea west of Point Barrow to the Bering Strait and the Beaufort Sea east of Point Barrow and off Alaskas

ABM February 2016 4 Digital Edition.indd 24 1/20/2016 2:57:57 PM

www.akbizmag.com February 2016 | Alaska Business Monthly 25

North Coast. The low lands bordering the Beaufort Sea are called the Arctic Coastal Plain: a vast flat area of deep permafrost peppered with shallow lakes mostly at, or below, sea level. The prevailing winds from the northwest constantly push the bottom silt and the ice pack back toward the land. This geography is well suited to the three oil developments that dot the offshore shal-lows on the artificial gravel islands and causeways that support production and operations at Endicott Island, Northstar, and Oooguruk. The conditions along the Beaufort coast across the northern edge of Alaska would require massive dredging and filling to craft a deep-water port. As such, periodic summer sealifts consist of

Arctic Boundary as defined by the Arctic Research and Policy Act (ARPA)

All United States and foreign territory north of the Arctic Circle and all United States territory north and west of the boundary formed by the Porcupine, Yukon, and Kuskokwim rivers; all contiguous seas, including the Arctic Ocean and the Beaufort, Bering and Chukchi Seas; and the Aleutian chain (The Aleutian chain boundary is demarcated by the Contiguous zone limit of 24-nautical miles).

Acknowledgement: Funding for the map was provided by the National Science Foundation throught the Arctic Research Mapping Application (armap.org) and Contract #0520837 to CH2M Hill for the Interagency Arctic Research Policy Committee(IARPC). Map author: Allison Gaylord, Nuna Technologies. May 27, 2009.MAP: United States Arctic Research Commission

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tug and barge delivery to shallow docks.The coast from Barrow south offers op-

tions with sheltered bays on the Seward Pen-insula and deeper waters around the islands in the Bering Sea. But along the Chukchi Sea, ice-free from mid-July through September, the potential for a deep-water sheltered port declines. Point Franklin, Wainwright, Point Lay, and Point Hope, all in close proximity to the Chukchi Sea OCS oil and gas leases that have all been cancelled by the federal gov-ernment, are capable of shallow to medium-draft vessels in somewhat sheltered bays that offer potential for logistics support rather than a deep-draft major port facility.

Southeast of Cape Lisburne, and twenty-six miles south of Point Hope, Cape Thompson is under consideration primarily as a potential terminal shipping extraction minerals and gas and potentially as a Coast Guard hub. In 1957, Cape Thompson was selected as the site for an artificial deep-water port to be created by detonating a series of five nuclear bombs, one to create the harbor and four to create a channel connecting the harbor to the deeper ocean. Improbable as that seems today, Proj-ect Chariot was the first project conceived for the US Atomic Energy Commissions Plow-share Program, which was engaged in find-ing peaceful uses for the power of the atomic

bomb. In 1959 the Commission was ordered by Congress to conduct bioenvironmental studies and produce an environmental re-port, now considered the first Environmen-tal Impact Statement. Project Chariot, for which planning began in 1958 and studies were conducted from 1959 through 1962, was scrapped in 1962 due to public outcry.

Farther south is a shallow-draft portpart of the DeLong Mountain Transportation Sys-tem, twelve miles south of Kivalina. The port, ore concentrate conveyor and storage facil-ity, and road system was financed through bonds by the Alaska Industrial Development and Export Authority to encourage devel-opment of the Red Dog mine, a partnership between NANA Regional Corporation and Teck. Tolls and fees have repaid the invest-ment over the years with annual dividends from the public-private partnership.

As a new era emerges with the opening of the Northwest Passage and the expan-sion of the Northern Route over Russia, pressure for Alaska Arctic port capacity is on. Defining the key elements needed by a port to serve Arctic maritime transporta-tion and shipping needs has been the topic of several conferences and numerous stud-ies over the past decade.

Serious Port Planning EffortsThe focus on Arctic ports was a part of a larger economic development effort by the state. Building the Arctic Marine Infrastruc-ture was one of the three main themes of the Arctic Marine Shipping Assessment (2005-09) by Lawson W. Brigham, PhD Professor, University of Alaska Fairbanks. Enhancing Arctic marine safety and protecting Arctic people and the environment are the other two goals of the assessment. The first Alaska Re-gional Ports Conference was convened in 2008 with local, state, and federal agencies; private transportation businesses; and tribal entities to discuss the issues impacting Alaskas ports and harbors. The US Army Corps of Engineers and Alaska Department of Transportation and Public Facilities (ADOT&PF) jointly com-missioned a study to establish the baseline information needed for a statewide ports and harbors plan. Two years later the second con-ference further refined the aims and policies, identifying the Arctic as one of eight statewide regions, with Barrow as a hub to provide a fo-cal point for regional investment.

In 2010, the Alaska State Legislature es-tablished the Alaska Northern Waters Task Force to identify Arctic issues requiring state participation and support. The task force convened a number of town halls and eventually listed eleven sites for consid-eration as potential deep-draft port sites. It turned out to be vast and complex task spawning further study by the Arctic Policy

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Commission, set up in 2012. Among the is-sues this group identified was the need for a northern ports assessment. Recognizing the potential for increased resource explo-ration and development that would require massive infrastructure investment (among many other attendant issues such as ef-ficient energy generation, construction, maintaining healthy communities, food security, etc.), the commission proposed an Alaska Arctic Policy. That policy called for increased development of mineral and oil and gas resources in the Arctic.

In 2013, the joint US Army Corps of En-gineers (USACE) and ADOT&PF three-year report, the Alaska Deep-Draft Arctic Port System Study, added three more sites, inves-tigating the potential of a total of fourteen. The possible sites for a deepwater port were St. Paul Island, St. Lawrence Island, Nome, Port Clarence/Teller, Kotzebue/Cape Blossom, Me-koryuk, Cape Thompson, Wainwright, Point Franklin, Barrow, Prudhoe Bay, Mary Sachs Entrance, Bethel, and Cape Darby. Based on evaluation criteria such as natural depth of water and navigational accessibility, proxim-ity to economic development (oil, gas, mining, fishing), and intermodal connections, that list was shortened to four likely candidates: Nome, Port Clarence, Cape Darby, and Barrow.

In advance of the US chairmanship of the

Arctic Council, the federal governments at-tention was directed to the Arctic through two pieces of legislation introduced by Senator Lisa Murkowski and Congressman Don Young. Neither the Arctic Deep Water Sea Port Act of 2009 nor the one initiated in 2010 got any traction, but they did get the discussion going on the need for US action in the Arctic and especially the need for icebreakers. The Distant Early Warning sys-tem, known as the DEW Line, was the last significant activity the federal government sanctioned in the Arctic region, built from 1954 through 1957 during the Cold War.

The 2013 National Strategy for the Arc-tic Region sets forth the US governments strategic priorities for the Arctic region. This strategy is intended to position the United States to respond effectively to chal-lenges and emerging opportunities arising from significant increases in Arctic activity due to the diminishment of sea ice and the emergence of a new Arctic environment. It defines US national security interests in the Arctic region and identifies prioritized lines of effort, building upon existing ini-tiatives by Federal, state, local, and tribal authorities; the private sector; and inter-national partners and aims to focus efforts where opportunities exist and action is needed. On the federal level, the Depart-

ment of Defense, the National Oceanic and Atmospheric Administration, the US Coast Guard, and the US Arctic Research Com-mission would all benefit from a deep-draft Arctic port, although none of the agencies individually can fund such a project.

The Ideal Arctic PortPorts used to grow organically: located at a strategic marine location like a deep water bay or harbor with connections to roads and cities where commerce could be conducted at a profit for transporting people and commod-ities. Its a law of physics that marine trans-portation requires less energy (cost) than any land-based transportation. Nearly every vi-able city in the world sprang from a port on a body of water. Both of these facts figure heav-ily into the situation in the Alaska Arctic.

In addition to the traditional primary functions of a maritime facilitymoving people and commodities in and out of the regionAlaska Arctic ports are expected to provide support for oil spill response, national security, and search and rescue. Challenges of building and operating ports in the Alaska Arctic are formidable. Plus, they must have the capacity to eventually service the full gamut of marine vessels: cruise ships, ferries, tank and cargo barges, fuel and commodity tankers, cargo carriers,

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tugs, fishing boats and factory trawlers, fed-eral research vessels, Coast Guard icebreak-ers and patrol vessels, Alaska Department of Fish and Game vessels, and oil spill response ships and barges, among others. (It should be noted that one of the huge expenses Shell encountered in their bid for an Arctic oil discovery was the contracting the operation and maintenance of a fleet nearly thirty ves-sels to support their drilling efforts.)

In their port development checklist, the Marine Exchange of Alaska identified the key elements needed to establish a port: suf-ficiently deep waters; adequately charted wa-ters; aids to navigation; and access to pilots, tugs, and functioning infrastructure on docks such as cranes, staging, and trucking. Arctic Marine Shipping Assessment of 2009 listed similar points on planning for Arctic ports: existence of intermodal transportation (air, rail, and road); emergency, search and rescue, and pollution response access; staging capac-ity for marine activity (offshore development, fishing, research, traffic); accessibility of civil services (law enforcement, security); and sup-port services such as marine repairs, commu-nications, stores, chandleries, etc.

Two years into the Alaska Deep-Draft Arc-tic Port System Study two sites emerged as the most feasible: Nome and Port Clarence, neither of which is actually in the Arctic.

Currently classified as a medium-draft port, Nomes vessel traffic has increased ten-fold over the past twenty-five years, accord-ing to the study, from thirty docked vessels in 1988 to 304 in 2011. Nome is positioned close to various economic development ac-tivity (fisheries, mining operations, oil and gas drilling); it is a solid year-round commu-nity with an airport, a hospital, and whole-sale and retail services. Still there are pros and cons: it is about 130 miles south of the center of the Bering Straits and it does ice up in the winter. But it is closer than search and rescue capacity at Kodiak or Dutch Harbor.

Port Clarence, located on a spit in Port Clarence bay just a few miles from the cen-ter of the Bering Strait, is the former site of a LORAN-C station administered by the US Coast Guard. Fewer than thirty people now live in the village a few miles from Teller, which is connected by road to Nome and has a small airfield. With a depth of about thirty-five feet and an approach channel that has forty feet of clearance, little to no dredging would be required, which means less cost to develop the port facility.

Three major decisions in 2015 affected the likelihood of actually developing an Arctic port in Western Alaska. By 2015 the USACE/ADOT&PF study settled on Nome despite the expense of dredging. That same

year Bering Straits Native Corporation an-nounced they were partnering with Crow-ley Maritime Corporation on a deep-water port development plan for the Port Clar-ence site. Royal Dutch Shell announced in late September 2015 that it ceased further exploration activity in offshore Alaska for the foreseeable future citing the Burger J well result, the high costs associated with the project, and the challenging and unpre-dictable federal regulatory environment in offshore Alaska. In the wake of that an-nouncement the USACE/ADOT&PF study was put on hold for at least twelve months.

Despite the seeming setbacks, funding mechanisms for Arctic port development took a giant leap forward as several Alaska Native corporations and private equity firms moved ahead with their plans to finance the needed infrastructure. The Golden Days scenario of the USACE/ADOT&PF study of high demand and active collaboration leading to productive development with a healthy social, cultural, environmental, and economic future could still materialize.

Investments Fund DreamsIn the summer of 2015 representatives of Arctic Slope Regional Corporation, NANA Regional Corporation, and Bering Straits Native Corporation announced the estab-



lishment of the Iuit Arctic Business Al-liance. Its purpose is to ensure that local people have a voice in economic develop-mentinfrastructure, transportation, ener-gywhile sustaining cultural stewardship. Iuit Arctic Business Alliance members own a total of 9.3 million acres of Arctic sur-face and subsurface real estate and represent more than 31,900 Alaska Native sharehold-ers. Global interests continue to focus on the Arctic, and we, Iuit, have always worked together to ensure our collective destiny re-mains in the hands our people, said Bering Straits Native Corporation President and CEO Gail Schubert in a press release. The Iuit Arctic Business Alliance is the conduit to ensure we lead this effort. The inclusion of local residents in the planning of Arctic infrastructure and its resultant benefits have been a primary goal.

Pt Capital, an Alaska based private equity firm run by former Lieutenant Governor Mead Treadwell, president, and former Beth-el Mayor Hugh Short, chairman and CEO, re-cently announced they had raised $125 mil-lion in an Arctic investment fund. In a recent press release the firm stated, The fund is fo-cused exclusively on the emerging market of the Arctic. The fund intends to invest in and grow companies in Alaska, Canada, Green-land, and Iceland in a broad set of industries.

A diversified group of global investors and Arctic indigenous-owned businesses have invested in the fund. Treadwell said there are currently more than $100 million worth of Arctic infrastructure projects seeking funding. These include port facilities requir-ing massive construction like breakwaters and causeways, docks, wharves, railroads, roads, warehouses, and offices. Upgrades to airports and existing roads and other exist-ing facilities are also part of the great trans-formation envisioned by proponents.

Pt Capital connects regional stakehold-ers, indigenous businesses, and global inves-tors. Due to the teams Arctic investment ex-perience, we believe that we are positioned to provide attractive returns, said Hugh Short. Were proud to have leveraged local and global investment to bring needed capi-tal to this part of the world. Short envisions a transformation of the Arctic: oil wells and mines, new roads and pipelines, with ports serving commercial vessels transiting the Arctic Ocean rather than using the Panama Canal, shortening by thousands of miles the distance between east and west.

Guggenheim, a New York- and Chicago-based firm that manages more than $210 billion in stocks, bonds, real estate, and infrastructure such as pipelines and elec-trical equipment, sees value in Arctic proj-

ects such as new deep-water ports and toll roads whose fees will rise as trade grows, said Scott Minerd, a managing partner at Guggenheim. At the Alaskan Arctic Sum-mit in Anchorage last summer Minerd said that his company is compiling an inventory of all planned and discussed infrastructure projects for potential investors represent-ing trillions of dollars in investment oppor-tunities. He said the firm plans to reveal the database of projects and their respec-tive estimated costs in early 2016.

Wild cards still loom on the horizon for the proposed network of Alaska Arctic ports. The warming climate presents opportunities for the growth of existing harbors and potential ports, it also means geographic change. The village of Kivalina and other Arctic and sub-arctic Alaska villages are being washed away by rising sea levels. Will investors and insurers be assured of a return on their investments in such an unstable climate? Will the state and the federal government be persuaded to step up to provide the necessary civil services? The new frontier of the Arctic promises great wealth along with great risk. R

Alaskan author J. Pennelope Goforth is home ported in Anchorage.


Mr. Charles Lean, Port Commission Vice-Chair Ms. Joy Baker, Port Director City of Nome P.O. Box 281 Nome, Alaska 99762

Dear Mr. Lean and Ms. Baker:

UNITED STATES DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration NATIONAL OCEAN SERVICE Office of Coast Survey

Srlver Spring, Maryland 20910-3282

MAR 0 3 2016

Thank you for your acknowledgement of our recent surveys to acquire modern bathymetry data in the proposed Port Access Route from Unimak Pass through the Bering Strait. While these surveys were not full-on hydrographic surveys, the bathymetry will significantly inform improvements to our nautical charts. I would also like to express my appreciation for hosting NOAA ships Rainier and Fairweather this past summer while they were conducting these

surveys. With limited facilities to support operations in the Arctic, access to the port of Nome is vital for efficient operations.

Limited ship resources for data acquisition in Alaska make it critical for Coast Survey to focus

our efforts on the most significant needs, and we appreciate your suggestion regarding the shipping lane north of Saint Lawrence Island to King Island. Lieutenant Timothy Smith is our navigation manager for Alaska, and he will contact you shortly to further understand your requirements.

I would also like to invite you to attend a stakeholder meeting that Coast Survey has organized in

Anchorage. The Alaska autical Charting Workshop is scheduled for March 22, from 8:30 to 5:00, at 222 West 8th Ave. Please let Lieutenant Smith know if you are interested in joining us that day. He can be reached at 907-271-3327, or by email at [email protected].

Thank you again for your support. The port of Nome has been an important stop for Coast Survey, dating back to the very early years of Arctic charting, and we look forward to your

future support of our NOAA vessels .

Sincerely,

:1::,:a,!!a'l, Director

@ Prin1ct.l on Rcqclct.l P;ipcr

From: Boyle, Garrett (Murkowski)To: Joy Baker; Larry MarkleySubject: FW: Murkowski Stresses Need for Deep Water Port in the ArcticDate: Wednesday, March 02, 2016 4:24:49 PMAttachments: Letter to President Obama.pdf

image002.png

Wanted to make sure you folks saw this. We are still poking them.

From: Petersen, Karina (Murkowski) On Behalf Of Press Office (Murkowski)Sent: Wednesday, March 02, 2016 7:22 PMSubject: Murkowski Stresses Need for Deep Water Port in the Arctic

FOR IMMEDIATE RELEASE Contact: Karina Petersen 907.350.5102March 2, 2016 or Jenna Mason 202.224.8069

Murkowski Stresses Need for Deep Water Port in the ArcticYou Cant Be An Arctic Participant Without A System of Ports

WASHINGTON, D.C. Today U.S. Senator Lisa Murkowski (R-AK) pressed Assistant Secretary of the Army for Civil Works, Jo-Ellen Darcy, on the need for a deep water port in the Arctic region. During an Energy and Water Development Appropriations Subcommittee hearing focusing on the U.S. Army Corps of Engineers budget request, Murkowski challenged officials for not funding the proposed port project in Nome, Alaska. Murkowski asked, When the President was up in Alaska in September, he announced the need for a deep water port that would be north of Dutch Harbor. Given the Presidents support for this, why have we not included construction funding going forward in this next fiscal year? Assistant Secretary Darcy responded, Since that time and since the Presidents visit, we are now going to look at further scoping of that study, because it was limited to just some economics involving oil and gas, but there are other things that can be included in this. For instance, the Port of Nome may be considered a port of national significance in addition to the fact that it could possibly house the Coast Guards icebreaker in the future as well as other benefits that could be gotten from that.
mailto:[email protected]:[email protected]:[email protected]

(Click image to watch video of Murkowski questioning Army Corps of Engineers on status of Nome port study.)

Murkowski said that while she supports increasing the potential scope of the Nome port study, she raised concerns that the Nome study was dependent on just one project.

I do find it really quite surprising that the assessment for a port could have been built upon one project without recognition of the expanded role, the activities in the region. This is one of those areas where when you talk to the people, whether they are in Nome or anywhere south of that they say, the Arctic is more than just oil and gas exploration. Its more than just Shell up north. It is about having infrastructure to accommodate a dawning reality that its almost as if a new ocean has been discovered at the top of the globe, Murkowski said. Background: After beginning an initial study into the feasibility of expanding the Port of Nome, the Army Corps of Engineers put a pause on the study in October 2015 after Shell pulled out of the Arctic. In response, the Alaska Congressional Delegation sent a letter (attached) to President Obama, expressing strong concerns about the fate of the proposed deep water port in Nome and explaining the need for a deep water Arctic port. Murkowski is chairman of the Senate Energy and Natural Resources Committee and the Interior Appropriations Subcommittee.

###

Note: Please do not reply to this email. This mailbox is unattended. For further information, please contact Senator Murkowskis press office at 202-224-9301 or 202-224-8069. Visit our website at

http://murkowski.senate.gov

https://www.youtube.com/watch?v=tH6NxM8yWUUhttp://www.knom.org/wp/blog/2015/10/26/u-s-army-corps-of-engineers-puts-nomes-port-expansion-on-12-month-hold/http://www.murkowski.senate.gov/public/index.cfm/pressreleases?ContentRecord_id=C6D0DDEC-B0CB-4F2F-BD97-FA5A29863066http://www.murkowski.senate.gov/public/index.cfm/pressreleases?ContentRecord_id=C6D0DDEC-B0CB-4F2F-BD97-FA5A29863066http://murkowski.senate.gov/

Memo To: Tom Moran City Manager

From: Joy L. Baker Port Director

CC: Mayor & Nome Common Council

Nome Port Commission

Date: 3/23/2016

Re: Port & Harbor Report/Projects Update March 2016

The following provides a status update on active issues and projects pertaining to the Port & Harbor. Information in italics represents no status change from previous report. Administrative: Staff actively pursuing A/R collections through vessel/equipment impounds, resulting in a 66% collection rate between closing 2015 balance of $149K to less than $50K today. Efforts continue on the remaining accounts with impound hearings scheduled for the end of March. Planning has begun for F17 budgetary forecasts as far as staffing needs, annual maintenance work as well operational equipment and supplies. The Port Commission is scheduled to hold a work session for March 31, 2016 to discuss prioritization of pending Port & Harbor projects, both large and small, based on needs/costs.

Causeway: Deep Draft Arctic Port Study: We have been continuing to advocate for movement on the USACEs Arctic Deep Draft Port Study at the federal and state levels, and were pleased to see the Nome project specifically mentioned in the attached excerpts; page 9 of the March 2016 Presidents Progress Report on the Implementation of the National Strategy of the Arctic Region, and page 5 of the Framework (Appendix A). (www.whitehouse.gov) We were equally pleased with the brief exchange between USACE Secretary Darcy and Senator Murkowski on the Nome project during a March 2, 2016 appropriations subcommittee hearing on the USACE budget, with Secretary Darcys response confirming their intent to move forward with rescoping the project to capture benefits that exist outside the economics program. Although the City has not received a written response to the Mayors February 2016 letter to OMB, the rescoping decision is excellent news for Nome and the region. We are in communication with USACE Headquarters and Alaska District to determine timeline and scope of their plan for moving forward. More to come

JLB

3/23/2016 Page 2 Port Director/Projects Status Report

Middle Dock: Project is in freeze status until 2016 breakup occurs, when remaining dredging and small list of punch list items will be completed. The first project planning meeting was held March 16, 2016 to discuss anticipated modifications to the ro-ro ramp to mitigate surface erosion from storm surges.

Inner Harbor: Snake River Floats Phase II & Travel Lift: This project remains in the planning/development phase for discussion. Although a funding source has not yet been identified, efforts continue to seek an appropriate mechanism or partner to develop this highly needed project.

Garco Building Upgrade: Staff looking into affordable ways to make improvements to this unit with new siding/roofing with insulated panels. EEIS ROM estimate was over $500K, which exceeds budgetary limits at this time; therefore, we continue to evaluate options to reduce costs.

Port Industrial Pad: Port Pad Development: Efforts continue to seek out new options for clean fill to develop the new Thornbush Subdivision in an effort to generate additional uplands needed for lay down storage. Cost estimates are being sought from local contractors to determine how to fill this site incrementally as funding is available. Another option would be to use spoils from dredging the Snake River moorage area, also based on funding.

Port Road Improvements: Periodic teleconferences with the ADOT planning team continue to occur to discuss progress on the scope of work/design based on the Citys priorities for this project. Construction is scheduled for FY2018, based on STIP funding.

Snake River Bridge Stage II - Jafet Drive Lighting Improvements: ADOT awarded this project in January 2016, which will resolve lighting and turning radius issues on Jafet Road along the Snake River Bridge. Construction is scheduled to be complete in July 2016.

West Nome Tank Farm (WNTF): The USAF is making reasonable progress on accomplishing specific tasks required by ADEC in order for the property to be officially conveyed to the City. Environmental Baseline and Cadastral Surveys are complete and perimeter fencing installed. The work for the placement of a permeable liner and cap has been awarded and is scheduled to occur in 2016. We are hopeful completion of this work will allow ownership to transfer to the City during FY2017.

External Facilities: Seawall Erosion Repair: Orion Marine will be actively positioning armor rock near the project site from the Causeway beach from late March to early April 2016 per the hauling & stockpiling plan provided in the previous report. Pending ice stability, the hauling may take place across a direct/short route (across the harbor channel mouth) or by road, whichever is best. Once a sufficient quantity of stone has been relocated, this portion of the work will cease, with Orion returning in mid-May to begin the repair work.

Cape Nome: Following FEMAs receipt of the Citys 02.10.16 letter regarding the ongoing delay of the award appeal, FEMA has now taken the necessary action to modify the Project Worksheet 17 based on PNDs Mitigation Repair Plan, which was submitted to FEMA Headquarters for approval and funding obligated. We received an email from Region X (SEA) on Monday, 03.21.16 that indicates the revised PW17 has cleared all necessary reviews and funding has been obligated for the project. We await transmission of the award packet, while engineers finalize plans/specs and bid documents, which are anticipated to be issued by mid-April 2016.

Additional information on any of these projects is available upon request.

Progress Report on the Implementation of the National Strategy for the Arctic Region

9

Dutch Harbor and the southern Alaska Peninsula, Kotzebue Sound, Port Clarence, and

Point Hope.

In 2016, NOAAs Office of Coast Survey will acquire survey data in areas around Etolin

Strait, the Southern Alaska Peninsula, and the approaches to the Yukon River, with plans

to return to the North Slope in 2017. The data will be used to assess and update nautical

charts.

In fiscal year (FY) 2015, NOAA updated 1,714 nautical miles of shoreline on Alaskan

nautical charts. This effort is continuing into FY 2016.

NOAA, the United States Geological Survey (USGS) within the Department of the

Interior (DOI), and the State of Alaska are collaborating to advance shoreline and near-

shoreline coastal mapping by using satellite data. This action has been determined to be

critical to monitoring climate change. NOAA is incorporating USGS, State of Alaska,

and other stakeholder input to prioritize locations for FY 2016 satellite imagery-based

shoreline products. In support of ongoing efforts, the June 2016 Coastal Mapping

Summit/Joint Airborne Lidar Bathymetry Technical Center of Excellence Workshop will

include an Alaska-focused coordination meeting to support advancing these efforts.

Evaluate Deepwater Port Capabilities

There currently are no U.S. deep-water harbors north of Dutch Harbor to provide shelter

to vessels in the Arctic region. To address this need, the U.S. Army Corps of Engineers is

evaluating the feasibility of deepening and extending harbor capabilities in Nome, Alaska. As

part of this effort, a draft Environmental Assessment was published in the Federal Register in

February 2015. The planning, funding, and implementation timeline originally called for on-site

operations to tentatively begin in 2020. Shell Oil Companys recent decision not to continue

Arctic oil exploration will require the project to be reevaluated because harboring vessels

involved in offshore oil development was a critical driver in the cost-benefit analysis of the draft

Environmental Assessment.

Monitor Climate Change

NOAA will update and install additional instrumentation on the Arctic coast to monitor

the effects of climate change and enable safe marine operations and transportation. In support of

this Presidential initiative:

In 2016, NOAA will establish a permanent National Water Level Observing Network

station to monitor sea-level rise. Six temporary water-level stations were installed and

removed in 2015 as part of the preparations for the permanent station. NOAA and

partners are working to prioritize locations for water-level sensors in order to close

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Implementation Framework for the National Strategy for the Arctic Region

5

Line of Effort 1: Advance U.S. Security Interests

Protecting the American people, our sovereign territory and rights, and the natural

resources and other interests of the United States remains the highest priority of the Federal

Government. The first line of effort focuses on activities intended to support these priorities:

preparing for increased activity in the maritime domain; sustaining and supporting evolving

aviation requirements; developing communication infrastructure; enhancing domain awareness;

sustaining Federal capability to conduct maritime operations in iceimpacted waters; promoting

freedom of navigation and overflight and other uses of the sea in accordance with international

law; and developing renewable and nonrenewable energy resources.

The National Security Council Staff is the overall coordination lead for this line of effort.

Evolve Arctic Infrastructure and Strategic Capabilities

1.1 Prepare for Increased Activity in the Maritime Domain

Objective: Guide Federal activities related to the construction, maintenance, and improvement of

ports and other infrastructure needed to preserve the mobility and safe navigation of United

States military and civilian vessels throughout the Arctic region.

Next Steps: Create a coordinated approach toward improving and maintaining infrastructure in

support of Federal maritime Arctic activities prioritized in consideration of national security,

navigation safety, and stewardship of national resources. This coordinated approach will include:

1.1.1 Deliver a 10year prioritization framework to coordinate the phased development

of Federal infrastructure identified through a Department and Agency validated needs

assessment by the end of 2016. Lead: Department of Transportation (as Chair of the

Committee on the Marine Transportation System)

1.1.2 Develop recommendations for pursuing Federal publicprivate partnerships in

support of the needs assessment and identified prioritized activities by the end of 2017.

Lead: Department of Transportation (as Chair of the Committee on the Marine

Transportation System)

1.1.3 Evaluate the feasibility of deepening and extending harbor capabilities in Nome,

Alaska, and if the evaluation determines that navigation improvements are appropriate,

begin planning efforts, including developing a construction timeline by 2020. Lead:

Department of Defense (U.S. Army Corps of Engineers)

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Documents

(907) 443-6619 Fax (907) 443-5473 AGENDA NOME PORT