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HomeMy WebLinkAboutRegional Development Strategy and Area Plan for Southeast Alaska Southeast Conference June 1996REGIONAL DEVELOPMENT STRATEGY AND AREA PLAN FOR SOUTHEAST ALASKA SOUTHEAST CONFERENCE The Alaska Regional Development Organization and USDA Resource Conservation and Development Council for Southeast Alaska June 1996 Interim Revised TABLE OF CONTENTS MNIDRODU GIO Nitccsserecscsnecscsnscrsarssstssscneneentaveacassensasseecsssvesensusnessessraventeresatertenceesttesrererceseee?) I-1 PIGAINNIN GARPROA ©Hnrececteccestescascnccnsesseacsnssacenccosnscancassssstessrseeversresvereserteececsenserseesteseere H-1 DESCRIPTION OF THE REGION nitccoscsescscssscssscnsossocscstovscacocnsercorsssteccveresecserecesasaresecscess Iil-1 STRUASIONFAINA TOV SIS fecccscenceseressecsesscsesnszcesnsescnsvonsececnsnsencorsnsnsarecesterresnceeseencsenereeseetese?) Iv-1 PROBLEMS/AND OPPORTUNITIES \ccscscocesssescaccecsesccosesesesescesecesesesesacecsessseseressesestseseses7s V-1 GOALS, OBJECTIVES, AND STRATEGIRG.........ccccsscsoressssssoserececessnsesosesecesosessesosesesoses VI-1 IMiSSiOM SscccccscesccscesccaccacerccaccetoscestasectoceeaccatecsusenscosestescostontasensecceneenecccesesessesttseaseTssTseeseTsT VI-1 Goal 1 - Community Development .........sccsssscsssessssessssecsseesssecesnecsssecsnecssseessneessseesaneessse VI-2 Objectives] = Enfrastrtcturres:...c..ccccsccceccsesssocsrscscsestsvecesescscesecssecevessaceccsscccsecsscvectesore VI-2 Objective’? = (Quality Of Lifer -c-c.c-ccccocceccessccscccoseesscssscscscsestssesccstacssescevecsessessesccecsess> VI-3 Goal 2=Pre-Economic Developme itt <<:scc-.scsceses-c-escesesencescscaseesussocssecsesesessaseccasestesesensas VI-4 Objective 1- Organizational Development.............scscssssecsssesescessssessesssesssesseeceseaees VI-4 Objective Zi Mocall Support ceccccecccesccccscecsecascececeacecasecenteaccacesnccoteseroccesseecseseesceessesces VI-5 Objective Si- Workforce Development.<:cccccceccescecscsssceasecceacescesceccescescasecscasesececeosess> VI-5 Goal;3/-Ecomomic Development cccce-cccocescncessssacensecrecesceccsncecsasocecascassceneuenssescsocrscereesess VI-6 Objective 1 - Resource development and Conservation VI-6 Objective 2 - Tourism Development ...............:0+0++ VI-7 Objective 2 - Business and Industrial Development...............scsccsseseereereeneeneeeeneeees VI-7 Goal 4 - Organizational Development... . VI-8 Objective 1 - Communications............ VI-8 Objective 2 - Effectiveness and Efficiency... VI-9 Objective 3 - Development Planning ............sssescsssseseersseeeeneeeseceensenenessseneasesnarsenseee VI-9 APPENDICES Appendix A - Adoption Resolution .........ssssssssssessssssssrsecsssssssssssesnesesnenessensanenenseneneensnsensees A-1 Appendix B - Agreement........ssscscssssessesensesessseessseescsssnsssensersncansnenssncacssencnsensnsensnsenencnnensenens B-1 Appendix C - Regional Development Needs .............+sssesse+e+ C-1 Appendix D - Local Development Needs.........ssssssssssesessereeees .D-1 Appendix E - Recent Activities and Accomplishments .. E-1 Appendix F - RC&D Special Provisions ...........+ssssssssesssseesesssseseneeseeeencnsencnceenenseneneenensenenness F-1 SECTION I INTRODUCTION Mission - The mission of Southeast Conference is to work to develop strong economies, healthy communities, and a quality environment in southeast Alaska. The goals, objectives, and strategies presented here support performance of that mission. Tasks to be performed in executing the re- gional development strategies contained in this document will be found in Southeast Conference’s Annual Work Plan. Background - Much has changed in southeast Alaska in recent years. Population has increased. Total employment has also grown, while total payroll has declined. The timber component of southeast Alaska’s economy has contracted greatly; the fisheries component seems to be facing a similar future. Tourism continues strong growth in the face of indicators that suggest a leveling- off may be experienced soon, mining is poised for healthy expansion once permitting hurdles have been overcome, and health care seems to be emerging as a growth industry. These and other trends present the people and communities of southeast Alaska varying chal- lenges and opportunities. Juneau’s population and employment continue healthy growth, and pri- vate sector jobs now outnumber government employment; Sitka is only beginning to feel the full effects of the APC pulp mill closure; Wrangell is still reeling from closure of the saw mill there. With the temporary shut-down of its processing plant and cold storage, Pelican is the first small fishing community to join the ranks of timber towns that have lost their primary employer. Com- munities on Prince of Wales Island continue growing slowly, while people in Ketchikan are afraid their economic mainstay, Ketchikan Pulp Corporation’s pulp and saw mills, may be the next to close. Native organizations work to preserve and strengthen their valuable culture and traditions and subsistence lifestyle, countering the centrifugal forces at work in society at large. Many mu- nicipalities in southeast Alaska face an uncertain future with respect to their ability and capacity to create and sustain the services on which the social health of their communities rely. And, sustain- ing the quality of life and environmental quality those who live in southeast Alaska value is, in the face of economic contractions and social dislocations, a daunting task. These circumstances present Southeast Conference and its members ever-changing opportunities and challenges in executing the regional development strategies included here. This document is three in one. First, it is Southeast Conference’s strategic plan. Second, it is the Regional Development Strategy (RDS) required by Alaska Regional Development Organization (ARDOR) Regulations. Third, it is the Area Plan required by USDA Resources Conservation and Development (RC&D) Council Regulations. This document is reviewed and revised annually. The Conference’s goals, objectives, and strategies are open to public comment at any time. Comments and suggestions should be directed to Southeast Conference headquarters in Juneau. I-1 SECTION II PLANNING APPROACH Planning Environment - This revision to Southeast Conference’s Regional Development Strat- egy and Area Plan for southeast Alaska is a significant step, but only an interim step taken during the early stages of significant programmatic and administrative change. It can be expected that this document will change significantly again over the next several revision cycles. Programmatic and administrative changes only now beginning to unfold are described below. Alaska Regional Development Organization (ARDOR) regulations have long required that AR- DORs prepare and maintain a regional development strategy (RDS). Heretofore the regulations have not been very specific about what a development strategy should contain. Now, pending changes would require that ARDOR work plans, and by implication the regional development strategies from which they derive, encompass a specific set of development activities. This re- vised RDS shifts focus from strategies targeted on individual sectors of the region’s economy to strategies targeted on regional development treated as an integrated whole. On 1 July, 1996, responsibility for oversight of the ARDOR Program shifted from the Department of Commerce and Economic Development (DCED) to the Department of Community and Re- gional Affairs (DCRA). It is expected this transfer will result in ARDORs that have not given much attention to community development, as distinct from economic development, to bring community development into their portfolio of interests. Now, ARDORs will be expected to work closely with DCRA field personnel and will likely take on some of their responsibilities. This revised RDS adds community and pre-economic development elements to its strategies for economic development in southeast Alaska. It can be expected that even more emphasis on these elements will be seen in future revisions. Also on 1 July, the source of funding for the ARDOR Program changed from the DCED Operat- ing Budget to funds transferred to DCRA by the Alaska Industrial and Export Authority (AIDEA). One result of this change is that ARDORs will be expected to take on new responsi- bilities for AIDEA outreach and coordination, and to include industrial and export development in their portfolios. This revised RDS includes both elements. It can be expected that even more emphasis on these elements will be observed in future revisions. Finally, early in Conference Fiscal Year 1997 the USDA Resource Conservation and Develop- ment (RC&D) Council Coordinator for southeast Alaska reported aboard. Implementation of this program brings Southeast Conference a new perspective on resource development, utilization, and conservation in the region, and additional capacity to forward local and regional development efforts. This RDS is an interim document in large measure because one of the Coordinator’s first tasks will be to review and expand it to conform to Natural Resources Conservation and Devel- opment Service (NRCS) Area Plan requirements. II-1 Planning Structure - One consequence of these programmatic and administrative changes is that Southeast Conference’s focus is shifting from purely economic needs to a much broader view of regional development challenges and opportunities. The structure adopted in this RDS for laying out development goals, objectives, and strategies reflects that shift. Sources and mandates for the planning structure found in Section VI are described below. The ARDOR Association consists of Board members and Executive Directors from all ARDORs. Recently, the Association developed an instrument for evaluating ARDOR program effectiveness and administrative performance. To test the instrument’s validity, all ARDORs evaluated them- selves in 1995 using it. The Department of Commerce and Economic Development contracted with the University of Alaska’s Institute for Social and Economic Research to assist the Associa- tion in assessing the instrument’s validity and determining how better assessments might be per- formed in the futuse. One result of this effort was that the Department originated changes to ARDOR regulations with respect to the planning structure used in regional development plans to help make assessing program effectiveness more meaningful. That planning structure is based on the strategic planning model. Strategic planning is one of the most-discussed approaches to development being talked about today. A study by the University of Nebraska described it as the process that best integrates factors that ultimately determine suc- cess or failure in local and regional development, factors such as identification of local needs and resources, adaptation to external constraints, nurturing of local leadership, partnership and col- laboration among public, private, and non-profit organizations, and sustained effort over many years, perhaps even decades. In setting goals and objectives and selecting strategies for attaining those goals and objectives, a framework is needed. A strategic planning framework similar to the one developed by the University of Nebraska, and similar to the one that will be adopted in ARDOR Regulations, is the framework used in Section VI. Planning Process - When Southeast Conference was designated the Resource Conservation and Development Council for Southeast Alaska, one of the first tasks the Council undertook was to determine how planning requirements set by the Board of Directors, the Department of Com- merce and Economic Development, and the Natural Resources Conservation Service might be satisfied in a single integrated strategic plan and annual budget and work plan. A recommended process for preparing a regional development strategy was one product of that task. That process is described below: Establish Mission and Vision - formulated during FY-95 and approved by the Board of Direc- tors for use in developing this revision, these two elements are the fundamentals of any strategic planning effort. Analyze the Situation - conduct an environmental scan of the environment external and internal to southeast Alaska. For this RDS revision, this resulted in the economic analysis described in Section IV. Because of the broader focus the Conference will take in the future, social and envi- ronmental analysis will be added to this RDS at the next revision. In future revisions, the primary tools used to update economic, social, and environmental situation analyses will be special ana- lytical studies and surveys of organizations and individuals throughout southeast Alaska. II-2 Identify Problems - identify, document, and prioritize problems, seeking input from a broad cross-section of the public. Problem identification for this RDS revision was accomplished through review of resolutions adopted by Conference members during their 1995 Annual Meeting in Whitehorse, review of municipal planning documents and legislative priorities, brainstorming sessions during the 1995 Annual Membership Conference, and an informal survey of municipal administrators. Because the geography of southeast Alaska makes regional public meetings im- practical, in the future the Conference will rely on the public participation processes of munici- palities and chambers of commerce and on surveys of organizations and individuals throughout Southeast. Identify Opportunities - identifying, documenting, and prioritizing opportunities for this RDS revision was accomplished, and will be accomplished in the future, in the same manner as for Problem Identification. Establish Goal and Objectives - examine the situation, problems, opportunities, and priorities, select situations to be influenced, problems to be solved, and opportunities to be capitalized on, then set goals that describe the end sought and specific objectives that describe what is to be ac- complished. Formulate Development Strategies - formulate one or more strategies, general statements of actions to be taken, for each objective. Develop Action Plans - prepare Annual Work Plans and Budgets that execute strategies con- tained in this RDS. Evaluate Results - frequently omitted from strategic management process is evaluation of re- sults. As execution of this RDS unfolds, Southeast Conference will evaluate results both by ex- amining general indicators of economic strength, community health, and environmental quality, and by specific results measured against results projected in Annual Work Plans. Review and Approval - Much of the content of this RDS is based on goals, objectives, and ac- tion plans prepared by municipalities and other entities in local plans prepared for their own pur- poses. Nevertheless, a formal review and approval process has been used. Steps in that process are. Board Approval - in May 1996, the Board of Directors approved the RDS for submission to Conference members. Pre-Adoption Review - in June, the RDS was sent to all municipalities and chambers of com- merce in southeast Alaska for review and comment. While comments were due in June, and while several municipalities responded, comments from anyone are welcome at any time. Adoption - after further revision in response to pre-adoption review comments, the RDS was submitted to Conference membership for discussion during their annual Membership Conference and formal adoption during their Annual Meeting. 11-3 SECTION III DESCRIPTION OF THE REGION Topography - The southeastern Alaskan archipelago is a 500-mile-long band of land on the western edge of the North American continent. Nestled between rugged coastal mountains and rocky beaches, Canada lies to the east, the waters of the Pacific to the west. Boundaries negoti- ated by man run northwest of Yakutat in the north, southeast along the ridge crest, and across the waters of Dixon Entrance in the south. Southeast Alaska is large, encompassing about 29,000 square miles. Coastal mountains rise to typical elevations of 1,500 to 8,000 feet. Within a few miles of the coast, particularly in the northern part, most are covered with ice and snow. The archipelago measures 120 miles east to west at its widest point and has 11,000 miles of shoreline. Tidal waters ebb and flow among a labyrinth of more than a thousand islands, many of them small. But one island, Prince of Wales, is the third largest in the United States. Only Kodiak and Hawaii are larger. Climate - The climate is maritime, with cool summers, moderate winters, and considerable rain and snow. Many people are surprised to learn that winter temperatures are often higher than those in the northern contiguous United States. Typical winter temperatures range from the teens to mid forties; typical summer temperatures range between the mid-forties and mid-sixties. An average of 100 inches of rain falls on the region each year, but averages tell only part of the story. Local topography tends to be very important. Ketchikan in the south receives 154 inches per year, while Skagway in the north gets only 26 inches. Downtown Juneau gets 92 inches: ten miles away at the airport the average is 54. The region's weather often produces startling con- trasts. From the Observatory Lounge of an Alaska Ferry on a misty day, the clouds appear to dip into the sea and the region becomes a land of restful shades of gray. From a small plane on a sun spangled day, however, the contrast between the blue of the sea and green of the forest seem too vivid and sharp to be real. Resources - Dense forests of spruce and hemlock cover the land to elevations of 2,500 to 3,000 feet. Many streams dissect mainland and island forests. Fjords cut deeply into the land, and steep-sided valleys tell a story of past glaciation. But glaciation is not all in the past. From the massive icefield which straddles the international boundary between Alaska and Canada, active glaciers still snake into valleys and color rivers milky white with finely pulverized rock. The region is highly mineralized. Gold, silver, lead, and zinc underlie the Juneau Gold Belt from Sumdum in the south to Berner's Bay in the north. Copper, limestone, and marble were mined on Prince of Wales Island early in this century. A world class molybdenum deposit lies near the sur- face at Quartz Hill, about 45 air miles east of Ketchikan. Other valuable deposits are located, and are being developed, across the border in Canada. III-1 Within the waters of southeast Alaska can be found more than 300 upland species of mammals and birds, 18 species of marine mammal, 37 freshwater or anadromous fish, and 36 marine inver- tebrates. People - In 1995, about 75,000 people lived in southeast Alaska, distributed unevenly, and gov- erned by a patchwork of cities and boroughs. About 40 percent lived in Juneau, the State capital. Another 45 percent lived in what have been classified as “other urban areas” in the region. The remainder, about 15 percent, lived in rural areas - See 1. The region’s ethnic mix has changed dramatically since the first census in 1880. Then, the census taker, Ivan Petroff counted 6,437 Tlingits, 788 Haida, 293 whites and 230 Creoles in the region, for a total of 7,748. By the 1990 Census, the mix had changed dramatically - see Table 2. TABLE 2 - SOUTHEAST ALASKA ETHNIC MIX U. S. Government 1990 Census TOTAL White American Indian, Eskimo, and Aleut Black Asian and Pacific Islanders Other and Unknown Races Hispanic Government - Communities in southeast Alaska are governed by a mix of government forms. Juneau and Sitka are Unified Home Rule Municipalities, a form much like the combination of a county and a city. Both encompass large areas. Juneau covers 3,080 square miles and Sitka, at 4,849 square miles, is the largest city in the United States. In contrast, Ketchikan is physically inside the Ketchikan Gateway Borough, but city and borough governments are separate, not un- like cities within counties in the lower 48. Also, there are small unincorporated communities like Elfin Cove, which lie inside the Unorganized Borough, parts of the state outside the boundaries of an established borough. The Alaska Legislature governs the Unorganized Borough. Infrastructure - "When we look at Alaska we are impressed by one salient feature, and that is the remarkable distances which exist between the isolated settlements," said census taker Petroff. "It is not at first apparent, but it grows on the traveler until he is profoundly moved at the expendi- ture of physical labor, patience, and skill required to traverse any considerable district of that country." Although modern transportation and communications have linked communities since Petroff’s day, isolation, great distances, and the absence of roads between communities, remains a salient feature of the region, a feature that people from outside southeast Alaska have trouble ac- cepting. "You mean you can't drive there?" they ask in amazement. For people who live here, it is easy to understand the importance of water and air transportation. III-2 TABLE 1 - SOUTHEAST ALASKA POPULATION Alaska Department of Labor 1995 Estimates for Southeast Communities by Census Area CENSUS AREA COMMUNITIES TYPE GOVERNMENT | POPULATION Juneau City-Borough Unified Home Rule 29,228 Ketchikan Gateway Borough 2nd Class Borough Ketchikan Home Rule City 8,557 Saxman 2nd Class City 394 Outside above cities 6,131 | Total for census area 15,082 Sitka Borough Unified Home Rule 9,194 Wrangell/Petersburg Petersburg Home Rule City . 3,350 Kupreanof 2nd Class City 24 Wrangell Home Rule City 2,758 Kake Ist Class City 696 Port Alexander 2nd Class City 98 Rowan Bay Unincorporated 55 Outside above communities Total for census area 7,303 Prince of Wales/ Outer Ketchikan Craig Ist Class City 1,946 Klawock Ist Class City 759 Hydaburg Ist Class City 406 Thorne Bay 2nd Class City 650 Coffman Cove 2nd Class City 254 Kasaan . 2nd Class City 41 Edna Bay Unincorporated 79 Hollis Unincorporated 106 Whale Pass Unincorporated 92 Naukati Bay Unincorporated 147 Labouchere Bay Unincorporated 9 Point Baker Unincorporated 62 Polk Inlet Unincorporated 69 Port Alice Unincorporated 22 Port Protection Unincorporated 64 Hyder Unincorporated Metlakatla Federal Reservation Myers Chuck Unincorporated 35 Outside above communities Total for census area Haines Borough 3rd Class Borough Haines Ist Class City Covenant Life Unincorporated Lutak Unincorporated Mosquito Lake Unincorporated Outside above communities Total for census area Skagway/Hoonalh/ Angoon Skagway Ist Class City Hoonah Ist Class City Game Creek Unincorporated Whitestone Camp Unincorporated Angon 2nd Class City Klukwan Unincorporated Gustavus Unincorporated Tenakee Springs 2nd Class City Pelican Ist Class City Cube Cove Unincorporated Elfin Cove Unincorporated Hobart Bay Unincorporated Outside above communities Totals for census area Yakutat Borough Yakutat Home Rule Borough Totals for Region TII-3 Until 1940, maritime transportation was the only way to get goods and people into and out of the state. And, while roads connect Haines and Skagway in the north to the rest of Alaska and while a road connects Hyder in the south to British Columbia, even these communities rely heavily on air and water transportation to deliver goods and people. In between, no roads link the other 39 communities in southeast Alaska to either the outside or to each other. Even today, southeast Alaska is linked primarily by maritime traffic. Six ferries operated by the Alaska Marine Highway System ply southeast Alaskan waters and connect many communities, but with widely varying frequencies. Bulk items still come into and leave the region by barge year round. Increasingly, however, high value and perishable items move in and out by air. Hydroelectric power is important in the region. Frequent rainfall and runoff from accumulated ice and snow charge 42,500 miles of streams and 260,000 acres of lakes and ponds. The majority of the population, but the minority of communities, are served by hydroelectric power. Those com- munities not served by hydroelectric power pay high rates for diesel generation. Historically, rates in many of the smaller communities have been subsidized by the state government. Cruise ships visit key ports seasonally, bringing visitors on whom southeast Alaska’s economy increasingly relies. Today - 1996 - tourism traffic has increased to the point where both transpor- tation infrastructure and destination attractions are beginning to feel significant pressure. IIl-4 SECTION IV SITUATION ANALYSIS Introduction - This Section opens with a brief description of southeast Alaska’s development between discovery and statehood. Then, to begin ferreting out challenges and opportunities to be found in the region’s current economic situation, it presents a more detailed description of devel- opments in the region’s economy over the last 10 to 15 years. One consequence of the recent and pending programmatic and administrative changes described in Section II is that in future RDS revisions an analysis of the social and environmental situation in the region will be added to this economic situation analysis. From Discovery to Statehood - When discovered by Vitus Bering in 1741, southeast Alaska was populated by aboriginal peoples, predominantly Tlingits but with a small enclave of Haidas on Prince of Wales Island. These native peoples hunted deer, caught fish, collected clams and mus- sels, and harvested berries and other edible plants. The relatively moderate climate enabled the Tlingit and Haida to thrive, and the abundance of the land and waters afforded them the resources needed to develop strong and artistic cultures. The fur trade and expanding European demand sparked the explorations that resulted in the Rus- sian discovery of Alaska. Not only were new lands found, but two new furbearers, the fur seal and the sea otter, were also discovered. The latter would become the driving force behind the Russian presence in Alaska. The Russians first based their fur harvest operations on Kodiak Island, but in 1800 Alexander Baranov expanded by establishing a fort near the present site of Sitka. When sea otters were har- vested to near-extinction, Russian attention then shifted then to land mammals like mink and bea- ver. But the glory years ended with the demise of the sea otter and it would not be long before the Russians would leave Alaska. During this phase of settlement, however, other industries were born. Timber was harvested for construction of boats and dwellings. Fish were caught and salted. Most of this activity was in support of Russian outposts, but some fish, timber and even ice were exported to California, Hawaii, and Mexico. From the time of Alaska’s transfer from Russia to the United States in 1867 until World War II, development in southeast Alaska was strongly tied to two industries, fishing and mining. Over 2,000 barrels of salt fish, worth $16,000, were packed in Alaska in 1868, the first year after transfer. The first fish cannery in Alaska, the Klawock Cannery, came into operation in 1878. More than 1,829 workers were employed in salmon canning in southeast Alaska by 1897. Be- tween 1880 and 1940 the population of the region increased from 7,748 to 25,241. Gold was discovered near Sumdum and Windham Bay in 1870 and Joe Juneau and Richard Harris found gold in Silver Bow Basin behind the present city of Juneau in 1880. The result was an in- flux of fortune seekers into the Juneau Gold Belt, which stretches from Berner's Bay in the north IV-1 to Windham Bay in the south. Although early mines started as placer operations, more sophisti- cated means were soon employed to separate the metal from its ore. As early as 1885, the Alaska Mill and Mining Company (in 1889 to become the Treadwell Mine) operated a 120 stamp mill in Douglas. By 1887 another 120 stamps had been added, making the mill the largest in the world under one roof. The Gold Rush of 1898 brought throngs of gold seekers through the region and established the communities of Haines and Skagway. Most of the "stampeders" continued north to the Klondike and beyond as gold was discovered in Fairbanks and Nome. Haines and Skagway remain to this day as gateways to northern resources. Hardrock mining in the Juneau area continued to grow as the Perseverance Mine came on line in 1915 and the Alaska Juneau Mine went into production in 1917. Although the Treadwell com- plex on Douglas Island was closed by 1922, the peak years of the Alaska Juneau Mine were yet to come. Between 1928 and 1941 more than $3 million dollars in gold, silver and lead were recov- ered annually. In 1942, production began to decline and the mine closed in 1944. Fishing continued to grow after the turn of the century. Development of processing machinery eliminated much of the hand labor in butchering, cleaning, and trimming fish. By 1914, the value of Alaska packed canned salmon was more than that of Puget Sound, the Columbia River, the Sacramento River, British Columbia, and Siberia combined. But by World War II the salmon fishery was in decline. Volumes of salmon had peaked in 1936 with 8.5 million cases of salmon. The industry would continue to decline until after Statehood in 1959. So, during and after World War IJ, in the years leading up to statehood the twin engines of south- east Alaska’s economy were winding down. Still, as they had since discovery and settlement, a large segment of southeast Alaska’s population continued to subsist on fish, wildlife, and edible plants. The Recent Past - Not only was demand for timber high in war-ravaged Japan, but the federal government saw the need to create new industry in the Territory of Alaska. The federal govern- ment, as the US Forest Service, consciously decided to develop a timber industry in southeast Alaska. A thriving timber industry was expected to fill the economic void left by declining fishing and mining. The Tongass National Forest had been created in 1908. At 16.9 million acres, the Tongass was, and is today, the largest of our nation’s National Forests. Until 1954, the volume of timber har- vested on the Tongass varied from near zero to about 100 million board feet (MMBF) per year. Harvest increased significantly with signature of fifty-year timber contracts and construction of pulp mills in Ketchikan and Sitka, sawmills in Wrangell, Juneau and Petersburg, and remote log- ging camps throughout the region to support the harvest. With Statehood in 1959, aggressive diversification of southeast Alaska’s economy began. Gov- ernment pumped money into the economy, both directly through federal and state payrolls and indirectly through public works projects. Timber continued to thrive. Today’s growing visitor industry was born with the first jet aircraft landing in Juneau in 1962 and creation of the Alaska Marine Highway System in 1963. Discovery of huge oil and gas deposits in 1968 in Prudhoe IV-2 Bay, coupled with plans for a pipeline to deliver the resource to markets, signaled prosperity ahead. In 1968 came good news for the moribund mining industry when Congress lifted the $35 ceiling on gold. And creation of the Exclusive Economic Zone in 1977 marked Americanization of the fishing industry as the resource was wrested from foreigners. Population and Employment - Southeast Alaska’s population increased about 157 percent over the first half of this century. Over the past ten years, the region gained 12,000 residents, an aver- age annual growth rate of 1.5 percent, a reasonable, manageable rate of growth. See Figure 1. Figure 1 Southeast Alaska Population: 1984 - 1995 ‘Source: U.S. Bureau of Economic Analysis Over the same period, 5,600 new jobs were created, a rate of 1.6 percent on average, also a healthy, manageable rate of growth. See Figure 2 and Table 3. The service sector of southeast Alaska’s economy grew faster than the average from 1990-1994. Retail trade added 1,000 jobs during the period, and employment in finance, insurance, and real estate increased about 21 per- cent. More recently, amusement and recreation services have experienced the highest growth rates, and health services added most jobs. Figure 2 Southeast Alaska Employment: 1984 - 1994 ‘Source: McDowell Group, based on Alaska Department of Labor data. IV-3 CENSUS AREA TABLE 3 - SOUTHEAST ALASKA EMPLOYMENT Source: 1990 U.S. Census COMMUNITIES TYPE GOVERNMENT Juneau City-Borough Ketchikan Gateway Borough Sitka Borough Wrangell/Petersburg Ketchikan Saxman Outside above cities Total for census area Petersburg Kupreanof Wrangell Kake Port Alexander Rowan Bay Outside above communities Total for census area Unified Home Rule 2nd Class Borough Home Rule City 2nd Class City Unified Home Rule Home Rule City 2nd Class City Home Rule City Ist Class City 2nd Class City Unincorporated Prince of Wales/ Outer Ketchikan Craig Klawock Hydaburg Thorne Bay Coffman Cove Kasaan Edna Bay Hollis Whale Pass Naukati Bay Labouchere Bay Point Baker Polk Inlet Port Alice Port Protection Hyder Metlakatla Myers Chuck Outside above communities Total for census area Ist Class City Ist Class City Ist Class City 2nd Class City 2nd Class City 2nd Class City Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Unincorporated Federal Reservation Unincorporated Haines Borough Skagway/Hoonah/Angoon Haines Covenant Life Lutak Mosquito Lake Outside above communities Total for census area Skagway Hoonah Game Creek Whitestone Camp Angon Klukwan Gustavus Tenakee Springs Pelican Cube Cove Elfin Cove Hobart Bay Outside above communities Totals for census area 3rd Class Borough Ist Class City Unincorporated Unincorporated Unincorporated Ist Class City Ist Class City Unincorporated Unincorporated 2nd Class City Unincorporated Unincorporated 2nd Class City Ist Class City Unincorporated Unincorporated Unincorporated Yakutat Borough Yakutat Home Rule Borough Totals for Region IV-4 But late in the period, annual job growth slowed to 0.5 percent on average, and the resource components of southeast Alaska’s economy are feeling the stress of change. Timber, fishing and government are cutting back while tourism, trade, and services expand. Health services are ex- pected to continue growing to meet the needs of an aging population, with further expansion into rural areas, and with a shift to home health care. Tourism should continue at high levels for at least the next two years. Overall, government employment will continue to decline with further cuts at the state and federal levels. Coming years should see slower growth with continued con- solidation and expansion as businesses strive to remain competitive. Since 1990, southeast Alaska has lost ground in terms of real payroll. See Figure 3. Personal in- come was bolstered by transfer payments - payments such as welfare, unemployment insurance. A disquieting trend was the increase in the percentage of personal income due to this infusion of governmental funds. Figure 3 Southeast Alaska Payroll: 1984 - 1994 Real and Nominal ‘Source: McDowell Group, based on Alaska Department of Labor data. Real Payroll adjusted to Anchorage CPI (U) (1994 base year). Below we will focus on each of the five major sectors of southeast Alaska’s private sector econ- omy. The intent is to trace development and diversification since Statehood and provide a picture of the current situation and prospects. This is a tricky proposition at best because, just as in much of its history, the economy of southeast Alaska appears to be in flux. Regardless of whether the reader subscribes to the theory of “boom and bust” or whether the reader believes more funda- mental changes are at work, the astute reader should interpret "current status" to mean Spring of 1996. Fishing - Peak years for the southeast Alaska salmon fishery between 1935 and 1940 saw harvest of up to 50 million fish. Thereafter, the numbers dropped to about 20 million in 1950 and about 6 million in 1975. With State takeover of fisheries management at statehood, passage of the Mag- nusen Fisheries Conservation and Management Act in 1977, limited entry into the salmon fishery in 1975, and Americanization of groundfish resources in 1988, harvest numbers have rebounded dramatically. More than 217 million pounds of salmon were harvested in 1995, an all-time high. But the future of southeast Alaska’s fishing economy is by no means clear. The region’s three big ports, Sitka, Petersburg and Ketchikan, processed 240 million pounds of product in 1993, up from 135 million pounds in 1984. Employment has grown; in 1994 there were 1,400 direct jobs and $30 million in payroll in the industry. But dramatic recovery of fish stocks has not brought unmitigated success for those who make their living in the industry. Tonnage on the world market was twice in 1995 what it had been in 1987. And, while 1995 was a record year for volume of salmon harvested, prices were down significantly from 1987 and 1988. Also, about 4 million pounds of halibut of the total quota of 48.6 million pounds were left uncaught under the newly-instituted IFQ system. In 1996, owners of Pelican Seafoods announced their intent to close the cold storage facility in Pelican because of poor salmon markets. One of the reasons given for not proceeding was the IFQ system and the uncertainty of getting the volumes of fish needed. At present, there is a high degree of uncertainty with respect to the future of the fishing industry in southeast Alaska because of judicial intrusion into fisheries management, the impacts of IFQ’s on small quota holders, en- dangered species issues, and salmon. While some optimism of recovery ahead is evident in Spring 1996, only time will tell whether optimism is warranted. Timber - The economy of southeast Alaska rode into the early statehood years on the back of a healthy and rapidly growing timber industry. Harvest from the Tongass National Forest would peak at 600 million board feet (MMBF) in 1974, even as new developments were in the wings. Congress passed the Alaska Native Claims Settlement Act, or ANCSA, in 1971. This Act set the stage for transfer of about 560 thousand acres of Tongass land to Southeast Alaska Native Cor- porations - Sealaska, the regional corporation, Shee Atika and Goldbelt, the urban corporations in Sitka and Juneau, and ten village corporations scattered through the region. The impact of these land transfers became apparent between 1978 and 1982, when the dollar’s rise against the Japa- nese yen resulted in increased demand for timber in the Far East. Taking advantage of this win- dow of opportunity, native corporations harvested at a rapid rate and exported round logs directly to Pacific Rim countries. For each of the years 1986-1989, between 300 and 350 MMBF of sawlogs were exported. This increase more than offset decreased harvest from the Tongass, which by 1982 had dropped from its 1974 high of about 600 MMBF to less than 400 MMBF. It should be noted, however, that accelerated export of round logs was not without local economic dislocations. Between 1981 and 1988, total employment in lumber and pulp mills dropped by 29 percent and several the older, inefficient sawmills were abandoned. The industry rebounded in 1989 to 3,516 direct jobs, up 81 percent from the low and up 19 percent from the previous high in 1981, Harvest on private lands peaked in 1989 with harvest of 530 MMBF. Between 1989 and 1994, private harvest declined 60 percent to 215 MMBF, while between 1990 and 1994 harvest on the Tongass declined from 471 MMBF to 276 MMBF. By 1995, these decreases had resulted in loss of 1600 jobs in logging, sawmills, and pulp mills and loss of over $60 million in forest products payroll, not counting indirect and induced payroll losses. In a 1995 presentation to Southeast Conference, The McDowell Group gave a pessimistic outlook for the timber economy and timber- IV-6 dependent communities in southeast Alaska, for two reasons: continued decline in timber harvest from private lands (all timber on private lands will be harvested within the next 8-10 years) and; expected continued decline in timber harvest from the Tongass as the Tongass Land Management Plan is revised in Fall 1996. Mining - The future of the mining industry in the region brightened in 1968 when Congress lifted the $35 per ounce ceiling on the price of gold. As the market price of gold rose, interest in the Juneau Gold Belt was rekindled. In 1974, exploration was proceeding on a 1.3 billion ton molyb- denum deposit at Quartz Hill, about 45 air miles from Ketchikan. US. Borax planned to mine this deposit as late as 1982, but after failing to obtain the key federal permit for mine tailings and waste rock disposal, sold the prospect to Cominco. During most of the 1970's and 80's, zinc and lead concentrates were shipped from mines in the Yukon Territory to Skagway for export via ocean going vessels. By the 1980's, Noranda Mining was obtaining necessary permits to develop a gold-silver-lead-zinc prospect on Green's Creek on Admiralty Island. Talk was in the air about reopening and expanding older mines, including the famous Juneau AJ Mine. In 1981, reported expenditures on minerals exploration were $20.94 million. Expenditures decreased to less than $2.75 million per year by 1986, rose to $5.85 million in 1987 and then to $20.64 in 1988. In 1989, the mine at Greens Creek went. into production. Between 1989 and 1993, when dropping ore prices caused a temporary closure, the mine was the most productive silver mine in the United States. The U.S. Bureau of Mines has identified 148 potentially commercially viable mineral deposits in southeast Alaska with a total gross in-place value of $43.8 billion. Given projects now under de- velopment, 900 jobs could be created in southeast Alaska’s minerals industry over the next few years. As of April 1996, Greens Creek is gearing up to resume full-scale production, after failing to acquire a key permit for mine tailings disposal, Echo Bay Alaska is redesigning a smaller proj- ect and seeking approval for submarine disposal of mine tailings, Coeur Alaska’s Kensington Mine continues toward development, shipment of Canadian ore concentrate through Skagway has resumed, and exploration on Prince of Wales Island continues. Tourism - Sightseers started coming to southeast Alaska soon after purchase from Russia. Com- mercial air traffic started in 1940. The Alcan Highway was constructed during World War II and with its link to Haines through Haines Junction, travelers began to make the challenging trip to Alaska by road. Statehood in 1959 sparked interest in the State. Jet service into Juneau was ini- tiated in 1962 by Pan-American Airlines and the Alaska Marine Highway System inaugurated service between Seattle, Prince Rupert, and southeast Alaska in 1963. Although the ships have changed with time, and although the independent travel component of the industry is growing, most visitors still come to southeast Alaska by ship. Between 1979 and 1989, cruise ship visitation to southeast Alaska increased from 46,000 passengers to over 200,000 and ferry system use increased from about 250,000 passengers to 343,000 passengers. The aver- age annual growth rate of tourist arrivals was above 10 percent in the 1960's and early 1970's, but slowed to 5 percent or less in the late 1970's and early 1980's.” IV-7 In the first half of the nineties tourism was booming. Southeast hosted 500,000 visitors in 1993, up from 300,000 in 1990. Visitors spent $152 million in the region during the summer of 1993, including $138 million by vacation/pleasure visitors. Visitor spending more than doubled since 1990, increasing by about $90 million. Spending within the region included $53 million in Juneau, $30 million in Ketchikan, and $14 million in Sitka. Cruise ship passengers accounted for about 75- 80 percent of the people coming to the region and they accounted for about 60-65 percent of the spending. But there are some storm clouds on the horizon for the cruise industry. In 1994, some ships came into the region at less than capacity and some companies have begun discounting tickets. Both trends could indicate market capacity is being approached. Government - Since Statehood, government has played a huge role in the economy of Alaska. In 1965, one-third of the personal income in Alaska came from federal salaries: the national average was 5.2 percent With Statehood came dramatic increases in federal spending for highways and other infrastructure. On October 2, 1964, President Johnson issued an Executive Order creating the Federal Field Committee for Development Planning in Alaska, recognizing the federal respon- sibility for development. In 1967, the State received $31 million in the Federal Aid Highway Act, $4 million for federal airports, $2.8 million for flood control and navigation projects by the Corps of Engineers. Also in 1967, construction of the Snettisham Hydroelectric project was begun and the Alaska Power Administration was established. The Small Business Administration provided a link between private enterprise and federal money. On August 28, 1967, President Johnson re- ported that $350 million had been spent in Alaska in response to the 1964 earthquake. In 1995, State, federal and local government accounted for over 40 percent of all wages and sala- ries in southeast Alaska. If transfer payments were included, government accounted for 55 per- cent of personal income in Juneau, 32 percent in the "Other Urban" areas, and 41 percent in the rural segment of the region. Since 1984 state government within the region declined by 200 jobs and the federal government by 50 jobs - local government grew by 800 jobs. IV-8 SECTION V PROBLEMS AND OPPORTUNITIES Introduction - This Section lays out significant economic, social, and environmental problems and opportunities confronting the people, communities, and businesses of southeast Alaska. The economy of southeast Alaska, indeed the economy of the entire state, is based on natural re- source utilization. Regardless of whether one subscribes to the “boom or bust” theory of south- east Alaska’s economic performance or whether one believes that more fundamental structural changes are taking place, the Situation Analysis in Section IV suggests several problems and op- portunities for the region’s people and communities. The forest products sector of southeast Alaska’s economy has contracted by more than forty per- cent since 1990. Decisions by the Forest Service could result in a further contraction of between 200 and 700 jobs, ten and thirty percent, taking 1990 as the base year. The problem is potential job loss in the industry; the challenge is to minimize the loss. Other challenges center around re- training and job placement for displaced workers, diversification of local economies through value-added processing, and revenue replacement and cost containment for communities and school districts region-wide. The fisheries sector of the region’s economy faces similar problems and challenges soon. In spite of the State’s exemplary management of southeast Alaska’s fish stocks, international competition and judicial intervention have resulted in low prices and limits on harvest. While many fear that Individual Fishing Quotas (IFQs) may drive smaller operators from the industry, the jury is still out. And, scarce State resources have slowed development of new fisheries in southeast Alaska. The problem once again is potential job loss and job replacement; the challenge is to minimize the loss and create new fisheries. Other challenges center around marketing Alaska seafood nation- ally and internationally, product quality improvement through infrastructure enhancement, and diversification through value-added product development. The outlook is brighter in the minerals sector. Assuming that Greens Creek reopens this year and assuming that the Kensington and Alaska-Juneau projects will be permitted and begin construc- tion in the not-too-distant future, several hundred new jobs could come on line in the immediate future, with a total increase of 900 possible in the long term. The opportunity here is employment for people displaced out of the timber and fishing sectors, the challenge lies in assisting those people in obtaining the necessary skills and in creating an environment where near one hundred percent Alaska hire is possible. The tourism sector offers a mixed bag. While bigger ships are bringing more people to the region, while the independent traveler component continues to grow, and while eco-tours may be the most attractive designation experience, lack of adequate infrastructure continues to be a primary problem. A second problem looming on the horizon is suggested by the fact that individual spending, at least in the cruise ship component, seems to be declining. Further, in many places, V-1 local residents are becoming vocal about the inconvenience that “too many” tourists cause them and are calling for some kind of limits. Finally, local governments, faced with rising costs and de- creasing revenues, have begun thinking about additional visitor or facility use fees. In tourism, the problems are associated with growth. And, while many people view tourism jobs as replacements for timber and fishing jobs, the challenge nevertheless is to find means to accommodate our many visitors, but in a way that minimizes adverse impacts on the lives of people who live here. Local governments face many problems, most associated with demands for continuing or expand- ing community services in the face of declining revenues, not the least a consequence of reduced state revenue sharing and support. The challenge is to find ways to provide better service while reducing the cost of government; the unique opportunity for Southeast Conference is to find ways to provide services on a regional basis to take advantage of economies of scale. The Con- ference’s experience in household hazardous waste is instructive. But the communities of southeast Alaska are confronted with other problems and opportunities that Southeast Conference has only recently begun to focus on. In particular, problems and op- portunities in education, health care, housing, recreation, environmental quality, and the like, may be amenable to regional solutions - certainly individual communities and organizations should be able to look to organizations like Southeast Conference for help in reaching their aspirations. For Southeast Conference, the challenges presented as a result of its expanding focus offer new op- portunities to help develop strong economies, healthy communities, and a quality environment in southeast Alaska. SECTION VI GOALS, OBJECTIVES, AND STRATEGIES Mission - Southeast Conference is a regional membership organization that advances the collective interests of people, communities, and businesses in southeast Alaska. The Con- ference is the Alaska Regional Development Organization and USDA Resource Conserva- tion and Development Council for the region. The Conference’s Mission is to help develop strong economies, healthy communities, and a quality environment in southeast Alaska. Introduction - In executing its regional development mission, Southeast Conference has many goals and objectives. The goals, objectives, and strategies in this Section are derived from the Conference’s former regional development strategy, from Resolutions adopted and brainstorming sessions conducted during the Conference’s 1996 Annual Meeting and Membership Conference in Whitehorse, local development plans provided by municipalities, informal surveys of people, communities and businesses in the region, and formal review and comment on a draft of this RDS by Conference members and non-member municipalities. It must be noted that Southeast Confer- ence does not have the resources needed to execute all of the strategies below simultaneously. Priorities for strategy execution within resource constraints are set by the Board of Directors when they review and approve the Conference’s annual Work Plan and Budget. During their 1996 Membership Conference in Whitehorse, Conference members considered the question: “What role should Southeast Conference play in regional development?” The answers, listed below in somewhat modified and condensed form, are included here to provide an indica- tion of how Southeast Conference will go about executing its strategies for attainment of its goals and objectives. Members said Southeast Conference should: 1 - Support the Governor’s Office. 2 - Facilitate public and private access to natural resources and land. 3 - Support and assist in execution of economic, social, and environmental improvement proj- ects that benefit both the region and the communities within it. 4 - Promote and assist in increasing local hire, employment of people and businesses who live and operate in southeast Alaska year-round. 5 - Promote and encourage a stable regulatory environment at local, state, and federal levels. 6 - Focus first on infrastructure development and enhancement as a necessary precondition to effective economic, community, and environmental development. 7- Foster formation of public-private partnerships to engage in local and regional economic, social, and environmental development. 8 - Coordinate among all interest groups in southeast Alaska, regardless of their position with respect to individual issues, to reduce conflict and facilitate cooperation in resolving issues of importance to the region’s people, communities, and businesses. 9 - Foster a high degree of environmental stewardship in the region. GOAL 1 - COMMUNITY DEVELOPMENT - Support and assist communities and bor- oughs in their efforts to improve communities and the region as a good place to live and do business. Objective 1 - Infrastructure - Support and assist in development, maintenance, and en- hancement of physical infrastructure throughout southeast Alaska. Strategy - Because marine transportation is the lifeblood of southeast Alaska’s economic and social well-being, give priority attention to the Alaska Marine Highway System. Prepare an information package that identifies priority System operation and maintenance needs, provide it to federal, state, and local governments well in advance of the legislative season, and follow up on actions taken with decisionmakers as appropriate. Monitor and support System man- agement’s efforts to obtain adequate funds for System operations and maintenance. Strategy - Through an active Transportation Committee, involve Conference members and other communities served by the Marine Highway System in advising and assisting System management in formulating operating plans and schedules that best meet the needs of com- munities in southeast Alaska within constraints imposed by resources available. Strategy - Encourage and support development of independent System capacity additions to the Marine Highway System, e.g. the Prince of Wales Island Independent Ferry Project and Goldbelt Corporation’s project for high speed ferry service in the north end of the region. Strategy - Prepare an information package that identifies priority highway construction and maintenance needs in southeast Alaska, provide it to federal, state, and local governments well in advance of the legislative season, and follow up on actions taken with as appropriate. Strategy - Prepare an information package that identifies priority airport improvement and maintenance needs in southeast Alaska, provide it to federal, state, and local governments well in advance of the legislative season, and follow up on actions taken with as appropriate. Strategy - Facilitate Conference member’s and other communities cooperation and participa- tion with the Department of Transportation and Public Facilities in preparing a comprehensive plan for regional intermodal transportation system development. In parallel, prepare and ad- vocate a vision of what the surface transportation system in southeast Alaska should look like in 20-30 years and suggest an approach for transition from what is now to what should be in the future. Strategy - In the interest of postponing the need to construct new power generating facilities, encourage and assist local utilities in developing and implementing energy conservation pro- grams in their service areas. Strategy - Support and assist communities generating high-cost electric power using diesels to develop plans for shifting to renewable energy generation sources such as hydroelectric or other emerging technologies such as piezoelectric. Strategy - Support and assist public and private efforts to create a regional power distribution grid that links local power generation facilities, brings in power from outside, and lowers the cost of power to consumers. Strategy - Determine how Southeast Conference might best contribute to ensuring an ade- quate supply of affordable housing throughout southeast Alaska. Strategy - On request, provide local government units support and assistance in improving their operating and administrative efficiency and effectiveness. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local comrhunity. Objective 2 - Quality of Life - Support and assist in development, maintenance, and en- hancement of health care, education, community services, and environmental quality throughout southeast Alaska. Strategy - Work with Providence Hospital in Anchorage, Bartlett Memorial Hospital in Jun- eau, and other providers in southeast Alaska in reducing the cost of effective health care de- livery through application of telemedicine technology throughout southeast Alaska. Strategy - Through referral to appropriate organizations and agencies, assist small businesses in obtaining affordable health care plans for their employees. Strategy - Develop programs for educating the public about local and regional economic, so- cial, and environmental concerns by developing information through appropriate analysis and by disseminating that information through study reports, newsletters, and articles for mass media publication. Strategy - Develop educational programs for use in schools that provide information about what where natural resources come from and what they are used for, the consequences for people and for the environment of using such resources, and how resources can be conserved and the environment protected without putting people and communities at a disadvantage. Strategy - Develop a public information program about the benefits of recycling and sponsor a regional “Green Star” program to identify businesses and industries that protect the envi- ronment and use resources wisely. Strategy - Support and assist in development and enhancement of recreational opportunities for both permanent residents of southeast Alaska and visitors. Strategy - Through an active Environment Committee, work with federal, state, and local regulatory agencies to help craft environmental regulations that maintain a quality environ- ment in southeast Alaska at a cost smaller and rural communities can afford. Strategy - On behalf of member communities and in partnership with the Department of Envi- ronmental Conservation, plan and execute a Household and Small Quantity Hazardous Waste Collection Program. Strategy - On behalf of member communities and in partnership with the Department of Envi- ronmental Conservation, investigate establishing and operating a regional solid waste man- agement program and facility. Strategy - Support and assist municipalities in developing, improving, and maintaining effec- tive and efficient systems for providing their citizens healthy drinking water and for handling waste water in a safe and effective manner. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local community. GOAL 2 - PRE-ECONOMIC DEVELOPMENT - To support and assist communities and boroughs in preparing themselves to perform economic development activities; to assist the region in preparing for regional economic development efforts. Objective 1 - Organizational Development - Encourage and assist development of leader- ship and organizations to participate in and perform local and regional economic and community development. VI-4 Strategy - Through an active Economic Development Committee, encourage and assist in bringing together people and communities to form local and regional partnerships to cooper- ate in economic and community development planning. Strategy - Expand staff's capability to teach visioning, strategic planning, and economic re- newal, its ability to assist communities and businesses in planning such efforts, and its compe- tence in facilitating groups that choose to undertake such efforts. Strategy - Develop a network of practitioners who live in southeast Alaska and coordinate referrals to them for communities and businesses who desire assistance in community, pre- development, and economic development endeavors. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local community. Objective 2 - Local Support - Encourage and assist in ensuring that financial resources needed for community and economic development are available. Strategy - Maintain a list of capital project needs, projects; disseminate the list to potential sources of financial and technical assistance and facilitate provision of assistance project spon- sors request. Strategy - Assist communities and businesses in identifying appropriate federal and state sources of financial and technical assistance and in preparing requests for such assistance. Strategy - Work with organizations such as the Alaska State Chamber of Commerce and the Municipal League in an effort to stabilize municipal revenue sharing, thereby helping stabilize local taxes and resources available to fund local services. Strategy - Through referral to appropriate organizations and agencies, such as the Southeast Alaska Small Business Development Center operated by the Juneau Economic development Council, assist businesses in accessing small business revolving loan and intermediate relender programs. Objective 3 - Workforce Development - Encourage and assist in developing the workforce needed in southeast Alaska. Strategy - Coordinate and facilitate training and technical assistance for small businesses and small business development throughout the region. Strategy - Encourage federal, state, and private agencies to conduct training and certification programs in the region to encourage participation by people in the region and lower the cost of that participation. Strategy - Identify job training needs of new business and industry in the region and work with them to develop programs that would provide the training required. Strategy - Identify skills possessed by workers displaced from shrinking components of the region’s economy that can be transferred to other industries; support and assist in developing and delivering the training they need to make the transition. Strategy - Encourage business and industry to implement “local hire” for both individuals and contractors; support and assist in developing and delivering programs and training that in- crease employment for people who live in the region. Strategy - Support long term economic and community development by monitoring and ad- vocating quality elementary, secondary, and post-secondary education programs and voca- tional and technical training that meets the needs of southeast Alaska’s people and communi- ties. Strategy - Encourage transfer of federal, state, and borough lands into private hands. GOAL 3 - ECONOMIC DEVELOPMENT - Support and assist planning and execution of local and regional economic development projects. Objective 1 - Resource Development and Conservation - Encourage and assist in respon- sible resource development, exploitation, and conservation. Strategy - In the interest of strong economies in timber-dependent communities, independ- ently participate in the Tongass Land Management planning process by analyzing Forest Service documents, summarizing their contents in special reports, and disseminating report information to anyone who requests it. Strategy - Diversify and strengthen the timber economy by identifying and helping those in the industry identify and exploit opportunities for alternate and value-added use of timber re- sources. Strategy - Advocate forest management practices that consider the needs of all forest users and that do no avoidable economic or social harm to the people and communities of southeast Alaska. Strategy - In the interest of strong economies in fisheries-dependent communities, monitor state and federal fisheries management, research, and enforcement; advocate fisheries poli- cies, practices, and public and private investments that work to the advantage of fishing peo- ple and communities. VI1-6 Strategy - Prepare an information package that identifies regional needs in fisheries manage- ment, research, and enforcement, provide it to federal, state, and local governments well in advance of the legislative season, and follow up on actions taken with decisionmakers as ap- propriate. Strategy - Diversify and strengthen the fisheries economy by identifying and helping fishers and processors identify and exploit opportunities for alternate and value-added use of fisheries resources. Strategy - In the interest of assisting communities that have the opportunity to strengthen and diversity their economies through minerals exploitation, monitor exploration activities throughout the region and periodically publish information on current activities and opportu- nities. Strategy - Monitor progress of minerals development project currently underway; ensure that costs and benefits to both local communities and the region as a whole are communicated to and considered by officials who must make decisions about whether project should be allowed to proceed. Strategy - In cases where minerals development projects seem bogged down by unnecessary bureaucratic red tape and delay, facilitate as necessary to help get the process moving smoothly again. Strategy - Develop and maintain an automated inventory of exploitable natural resources. Objective 2 - Tourism Development - Encourage and assist in encourage responsible de- velopment of local and regional tourism. Strategy - Support and assist cooperation among local visitor and convention bureaus, and with the Southeast Alaska Tourism Council, to promote southeast Alaska as a quality visitor destination. Strategy - Perform an assessment of local and regional tourism infrastructure development needs and projects; participate with state agencies in formulating strategic plans for infra- structure development and enhancement. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local community. Objective 3- Business and Industrial Development - Assist in continuation of existing businesses and development of new enterprises. Strategy - Support the efforts of the Small Business Development Center, the Alaska Busi- ness Development Center, the Alaska Industrial And Export Authority, and the State of Alaska by conducting outreach activities and making referrals among those agencies and communities and businesses in southeast Alaska. Strategy - Promote southeast Alaska as a good place to live and do business; assist individual communities in business and industrial recruiting as appropriate. Strategy - Develop the capability to assist businesses and industry in the region in penetrating foreign markets. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local community. GOAL 4 - ORGANIZATIONAL DEVELOPMENT - To expand and strengthen Southeast Conference’s ability to advance the economic, social, and environmental interest of the southeast Alaska’s people, communities, and businesses. Objective 1 - Communications - Increase communications with Conference members and other people, communities, and businesses about economic, social, and environmental conditions, events, and possibilities in the region. Strategy - Publish a Southeast Conference News/etter that includes information about com- munity development, pre-economic development, and economic development trends, chal- lenges, and opportunities in the region. Strategy - In conjunction with the Newsletter, periodically poll Conference members and other people, communities, and businesses to elicit their views on emerging regional eco- nomic, social, and environmental trends and their desires with respect to positions the Confer- ence should adopt on such matters. Strategy - Sponsor or cosponsor conferences and seminars designed to provide information people, communities, and businesses in southeast Alaska need to be fully informed about matters that might affect them; sponsor or co-sponsor workshops on natural resources devel- opment, utilization, and conservation, community, pre-economic, and economic development, and business and industrial development. Strategy - To facilitate face-to-face exchange of information and increase membership en- gagement in Conference activities, hold a yearly Membership Conference and Annual Meet- ing; publish an Annual Report that describes the Conference’s activities and accomplishments. Objective 2 - Efficiency and Effectiveness - Strengthen and streamline Conference or- ganization and operations to minimize overhead and maximize service to members and to the region. Strategy - Establish policies and standard operating procedures for Conference strategic and operational planning, financial management, personnel management, and administration. Strategy - Increase financial independence by recruiting new members, identifying new sources of revenue, and moving to become independent of contracts and grants as sources of funds to cover day-to-day operating expenses; consider implementing cost-recovery for services provided; consider establishing a for-profit arm of the Conference to establish a sound, stable income base. Strategy - Periodically evaluate the Executive Director’s performance, the Board’s perform- ance, and the Conference’s performance and accomplishments. Objective 3 - Development Planning - Prepare and maintain a single integrated Regional Development Strategy, Budget, and Work Plan for Southeast Conference. Strategy - Under the RC&D umbrella, travel to communities, locate groups of individuals who wish to undertake local development projects, help them organize and get started, ar- range for technical assistance as needed, and facilitate their efforts to a successful conclusion. Strategy - Under the ARDOR umbrella, identify and advocate development projects that have regional impacts and offer economic, social, and environmental benefits beyond the confines of the local community. Strategy - Develop a process for proposing and accepting, and a methodology for evaluating and prioritizing, local and regional economic and community development projects. Strategy - Develop and maintain database that describe communities and businesses in south- east Alaska and that contain economic, social, and environmental data and indicators about those communities and businesses. Strategy - To support preparation and revision of the Regional Development Strategy’s Situation Analysis, conduct scans of the external and internal environment and prepare analy- ses of the current and desired future economic, social, and environmental situation. Strategy - Develop techniques for directly involving people, communities, and businesses from throughout southeast Alaska in analyzing and identifying economic, social, and environ- mental challenges and opportunities and in setting goals, establishing objectives, and formulat- ing strategies. VI-10 APPENDIX A ADOPTION RESOLUTION A-1 ae SOUTHEAST CONFERENCE vidio * Tel. (907) 463-3445 FAX (907) 463-5670 124 West 5th Street Juneau. Alaska 99801 A RESOLUTION ADOPTING AN INTERIM REGIONAL DEVELOPMENT STRATEGY FOR SOUTHEAST ALASKA (Resolution 95-27) WHEREAS As the Alaska Regional Development Organization (ARDOR) for south- east Alaska, Southeast Conference is required to prepare and maintain a Regional Development Strategy (RDS), and; WHEREAS As the USDA Resource Conservation and Development (RC&D) Council for Southeast Alaska, Southeast Conference is required to prepare and maintain an Area Plan, and; WHEREAS The Board of Directors, wishing to avoid a proliferation of potentially conflicting regional development plans, requires preparation of a single in- tegrated plan that meets both ARDOR and RC&D requirements, and; WHEREAS Recent and pending changes in oversight and funding of the ARDOR Pro- gram, pending changes in ARDOR regulations, and pending arrival of new RC&D resources create a situation where past plans are obsolete, and; WHEREAS These same recent and pending changes create a situation where it is un- clear what Southeast Conference as a regional development organization will be expected to focus on and emphasize in the future, and; WHEREAS Notwithstanding the foregoing, Southeast Conference’s ARDOR contract for FY-96 requires preparation of a revised RDS by 1 July 1996, and; WHEREAS Staff has prepared an interim RDS based on resolutions adopted and brainstorming conducted during the Conference’s Membership Conference in 1995 in Whitehorse, on a review of municipal planning documents, on a more recent analysis of the situation in southeast Alaska’s economy, and on an even more recent informal survey of development needs in southeast Alaskan communities. “Working Pe? All Alaska” RESOLUTION 95-27 2 May 31, 1996 NOW THEREFORE BE IT RESOLVED THAT: Witness: Attest: 1 - The Southeast Conference Board of Directors adopts the Southeast Conference Interim Regional Development Strategy (IRDS) for Southeast Alaska dated June 1996, to stand as the Conference’s interim strategy until expectations with respect to the Conference’s future focus and emphasis in regional development become more clear. 2 - The Southeast Conference Board of Directors directs staff to send the IRDS to member municipalities, member chambers of commerce, and other non-member municipalities for their review and input. 3 - The Southeast Conference Board of Directors directs staff to revise the IRDS on the basis of comments received, to submit the revised RDS to the Board for approval, and to deliver the approved RDS to Conference mem- bers for formal adoption during their Annual Meeting in Juneau. 4 - The Southeast Conference Board of Directors directs staff to seek state and federal guidance with respect to what will be expected of Southeast Conference in terms or focus and emphasis in regional development once programmatic and administrative changes now underway have been com- pleted, and to initiate further revision of the RDS as necessary. (itl, Nek ackinnon, President Date: 5\? lac Berne C. Miller, Executive Director APPENDIX B AGREEMENTS Agreement - Southeast Conference agrees its resource conservation and development program will be conducted in compliance with the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, the Rehabilitation Act of 1973, the Education Amendments of 1972, the Age Dis- crimination Act of 1975 and in accordance with regulations published by the Secretary of Agricul- ture which provide that no person in the United States shall, on the grounds of race, color, na- tional origin, age, sex, religion, martial status, or handicap disability be excluded from participa- tion in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that receives federal financial or technical assistance form the Department of Agricul- ture of any agency thereof. Southeast Conference also agrees that signing this document constitutes agreeing to comply with federal laws concerning restrictions on lobbying, a drug free workplace, and responsibilities for non-procurement, suspension, disbarment, and state review. Southeast Conference hereby adopts this Regional Development Strategy as its Resource Conser- vation and Development Area Plan for southeast Alaska and agrees to effectively and efficiently use resources provided by the Department of Agriculture to realize the goals and strategies found herein. SOUTHEAST CONFERENCE Date: @ | eels L Mackinnon, President Southeast Conference ¢ Yel ) of Date: \zzhe Linda Snow, Secretary Southeast Conference NATURAL RESOURCES CONSERVATION SERVICE Date: é q b Schmidt, Acting ull Conservationist B-1 APPENDIX C REGIONAL DEVELOPMENT NEEDS Introduction - This Appendix lists significant community, pre-economic, and economic develop- ment projects Southeast Conference members believe offer economic, social, and environmental benefits to the region as a whole and which the Conference can and should, under the ARDOR umbrella, advocate, support, and assist in bringing to completion. The descriptions contained in this Appendix were provided by project proponents. Conference members are welcome to pro- pose additions or deletions at any time. (Note - content of this Appendix is still under develop- ment) Community Development Projects - improving the community’s infrastructure and enhancing the community as a place to live and to do business by planning and executing transportation, en- ergy, housing, education, health care, recreation, community services, and environmental quality improvement projects. Prince of Wales Independent Ferry Project - to improve ferry service between Prince of Wales Island, Ketchikan, and Wrangell/Petersburg and incidentally increase total ferry service capacity in southeast Alaska by forming a port authority on Prince of Wales Island and constructing and op- erating two Ferris. Sponsored by the City of Craig. Cost is about $xxM. Creates xx new jobs. Goldbelt Independent ferry Project - TBD Emergency Landing Strip, East Side Price of Wales Island - to improve air transportation services to POW Island during periods when the airport at Kalwock is inaccessible due to weather. Spon- sored by City of Thorne Bay. Cost is approximately $60K. Creates no direct jobs. Boat Grid, Thorne Bay Boat Harbor - to provide boat maintenance and repair facilities in Thorne Bay, completing the small boat harbor construction project begun in 1988. Sponsored by the City of Thorne Bay. Cost is approximately $275K. Creates no direct jobs. (Note - follow-on plans include construction of a stationary platform lift, a large boat hoist and on-shore storage, and moorage expansions.) Cmuise Ship Lightering Facility - to provide adequate facilities for supporting the visitor industry. Sponsored by the City and Borough of Sitka. Cost is approximately $1.0M. Creates ???direct jobs. Skagway Port Development - TBD Thompson Harbor Expansion - to improve support for the fishing fleet based in Sitka be improv- ing the breakwater and expanding mooring facilities. Sponsored by the City and Borough of Sitka. Cost is approximately $3.1M. Creates ???direct jobs. C-1 Wrangell Harbor - to provide facilities needed to support fishing and tourism businesses in Wrangell. Sponsored by City of Wrangell. Cost is about $16.0M. Creates ??? new jobs. A re- lated project for a boat lift and haulout facility at a cost of about $1.0M would open many new business opportunities. Sitka-Baranof Warm Springs Road - to improve Alaska Marine Highway System service fre- quency and convenience for the City and Borough of Sitka and incidentally increase overall ca- pacity of the System by construction a road between Sitka and Baranof Warm Springs and relo- cating the Marine Highway System terminal to Baranof Warm Springs. Sponsored by the City and Borough of Sitka. Cost is approximately $???M. Creates ???direct jobs. University of Alaska Southeast, Sitka Campus - to meet the needs of the rural sanitation program by completing construction of classroom and laboratory facilities. Sponsored by the City and Borough of Sitka. Cost is approximately $1.5M. Creates ???direct jobs. Renovate Sitka High School and Baranof Elementary School -. Sponsored by the City and Bor- ough of Sitka. Cost is approximately $14.9M. Creates ???direct jobs. Public Safety Academy Dormitories and Classrooms - to upgrade Academy facilities to meet cur- rent and project future demands on the facility. Sponsored by City and Borough of Sitka. Cost is approximately $1.8M. Creates ???direct jobs. Sitka Solid Waste Disposal - relocation of existing facilities beginning in the year 2000. Spon- sored by the City and Borough of Sitka. Cost is approximately 7.0M. Creates ???direct jobs. Ketchikan Solid Waste Disposal - Ketchikan currently ships solid waste to the Lower 48 by barge. A search for local options is desired. Household Hazardous Waste Collection - a regional partnership among communities, Southeast Conference, Prince William Sound Economic Development Council, the department of Environ- mental Conservation, and the Marine Highway System operates a program to collect and disposal of household ands small quantity hazardous wastes in communities in southeast Alaska and Prince William Sound. Regional Solid Waste Management - several communities in southeast Alaska either have now in the future will face difficulties in handling solid waste disposal. This project, sponsored by South- east Conference, will examine possible regional solutions to the problem. Pre-Economic Development - preparing communities for economic development by facilitating creation of local development organizations, leadership, and cooperation, by establishing sources of financing and other resources, by developing the local workforce, and by enhancing the com- munity’s attitude and image. Economic Development - supporting existing enterprises, attracting new enterprises from “outside”, and creaing new enterprises at home. Ketchikan Aquarium Project - to enhance Ketchikan a visitor destination and to create new em- ployment, construct a world class aquarium in Ketchikan. Sponsored by Ketchikan Aquarium, Incorporated. Cost is about $M. Created 15-25 new jobs. Lewis Reef Industrial Park - to make more land available in Ketchikan for industrial and business use by construction a boat harbor and associated upland facilities adjacent to Ketchikan Airport. Sponsored by the Ketchikan Gateway Borough. Cost is approximately ???7M. Creates ??? direct jobs. Granite Creek Industrial Park - to make more land available in Sitka for industrial and business use by construction a boat harbor and associated upland facilities adjacent to Ketchikan Airport. Sponsored by the Sitka City and Borough. Cost is approximately ????M. Creates ??? direct jobs. APPENDIX D LOCAL DEVELOPMENT NEEDS Introduction - This Appendix lists projects Southeast Conference members want completed in their local communities and which the Conference can and may, under the RC&D umbrella, assist communities in completing. The descriptions contained in this Appendix were provided by proj- ect proponents. Conference members are welcome to propose additions or deletions at any time. Community Development Projects - improving the community’s infrastructure and enhancing the community as a place to live and to do business by planning and executing transportation, en- ergy, housing, education, health care, recreation, community services, and environmental quality improvement projects. (Under development) Pre-Economic Development - preparing communities for economic development by facilitating creation of local development organizations, leadership, and cooperation, by establishing sources of financing and other resources, by developing the local workforce, and by enhancing the com- munity’s attitude and image. (Under development) Economic Development - supporting existing enterprises, attracting new enterprises from “outside”, and creaing new enterprises at home. (Under development) D-1 APPENDIX E RECENT ACTIVITIES AND ACCOMPLISHMENTS Introduction - The State Tasks Alaska Regional Development Organizations (ARDORs) with working to create jobs in the private sector, maintaining an office accessible to the public, collect- ing and disseminating information about the region’s communities and economy, and coordinating with state and federal agencies in public-private partnerships. Deciding what any individual AR- DOR will work on and how it will meet the State’s mandates is the responsibility of the AR- DOR’s Board of Directors. The Board’s decisions are reflected in the Work Plan and Budget that are a part of each ARDOR’s annual contract with the State. The State provides each ARDOR an operating grant that, when matched with other funds, enable it to seek the ends enumerated above by executing tasks in its approved Work Plan. The fundamental goal of the ARDOR program is creation of new jobs in the private sector. Some ARDORs have a contract with the State to operate the Small Business Development Center (SBDC) for their region, others do not. Those that do put much effort into helping start up and sustain the small businesses that provide more than half of the jobs - and new jobs - in the State. Those ARDORs that do not operate SBDCs work on creating jobs at one step removed by pro- moting local and regional projects that offer the potential for increased employment that result from strengthening and diversifying local and regional economies. ARDORs that run SBDCs can “count” jobs created; ARDORs that do not, can not. The State awarded the contract for operation of the Southeast Alaska Small Business Develop- ment Center to the Juneau Economic Development Council (JEDC). While Southeast Conference avoids duplicating the efforts of JEDC, the Conference and its members support JEDC in provid- ing small business development services and support throughout the region. In its Federal Fiscal Year 1995 statistics, JEDC/SBDC claimed 106 jobs created and 46 jobs retained. Although Southeast Conference does not seek credit for those results, the Conference contributed to them through active support of the SBDC Program. Because Southeast Conference does not operate the Southeast Alaska SBDC, the Conference fo- cuses on larger regional projects and interests that will strengthen and diversify the region’s econ- omy, thereby increasing the economy’s capacity to create and retain private sector jobs. In addi- tion, because of the significant contraction in the timber component of southeast Alaska’s econ- omy in recent years and the equally significant contraction in the fisheries component that trends suggest is likely in the immediate future, the Conference’s Board has elected to focus on working to ensure that existing jobs don’t disappear unnecessarily. The kinds of regional projects and in- terests Southeast Conference has worked on over the past few years are summarized below. Transportation - Continued long-standing coordination with Alaska Marine Highways System management to preserve and expand system service, capacity, and convenience. In a recent meeting with senior DOT&PF officials, renewed the Conference’s commitment to acting as the E-1 medium for ensuring extensive and effective public and community involvement in system sched- ule development. The Conference reviewed several proposals for independent ferry construction and port authority creation to add to system capacity. Proponents of one such project, the Prince of Wales Inde- pendent Ferry Project, have said their project would not have gotten as far as it has, nor as smoothly, without active Conference participation and backing. In a recent meeting with the DOT&PF Commissioner, the Conference committed to membership in the group he intends to establish to exercise oversight over the long range, multi-modal re- gional transportation strategy and plan he intended to develop. Telecommunications - Southeast Conference recently joined with a group of Southeast hospitals to look into initiating a distant delivery telemedicine project in southeast Alaska. Technologically similar to video teleconferencing, the project offers similar benefits, a reduction in medical costs resulting from unnecessary evacuation transportation. Community Services - For the past three years, the Conference has managed a region-wide household hazardous waste collection and disposal program in partnership with the Department of Environmental Conservation and the local communities. Recently the program has been expanded to include several communities in Prince William Sound. In collecting and disposing of hazardous wastes for communities, the Conference’s program helps keep hazardous substances out of the environment and helps communities handle such wastes at reduced cost. The Conference recently initiated a new project to investigate whether regional management of other solid waste might prove advantageous to our communities. As the State budget continues to decline, Southeast Conference will look for services our people and communities need but which government can no longer perform. Welfare reform and reduc- tions in job training programs offer opportunities for the Conference to provide services, either under contract to the State or on a fee for services basis. This area offers fertile ground for the Conference to become less dependent on state and federal grants for operating funds. Capacity-building - Since 1982 Southeast Conference has undertaken helping local communities with “economic renewal.” Teaming with the Rocky Mountain Institute, the Conference first pro- vided training in citizen-initiated needs assessment, project selection, and project implementation processes. Next, the Conference helped several communities start the process, notably Sitka, Haines, and Prince of Wales Island. Finally, the Conference has been authorized by the Institute to offer process facilitation services. Late last year, over several months the Conference facili- tated the effort in Skagway, helping their Economic Development Commission initiate and com- plete the community-based process; several project the people of Skagway selected have already bee completed. Southeast Conference presented an economic renewal process seminar during the Alaska Munici- pal League Local Government Conference in Valdez last winter, and looks forward to assisting communities outside southeast Alaska in the future. Southeast Conference assisted the City and Borough of Juneau’s tourism effort by facilitating a community meeting designed to elicit tourism impacts and benefits. The Conference will soon initiate a survey of tourism infrastructure project needed and underway in Southeast for input to a regional development planning effort. Economic Recovery - Shortly after the timber processing mill in Sitka and Wrangell closed, bringing economic distress to those communities, Southeast Conference initiated studies to inves- tigate whether other value-added timber, medical, or high tech electronics businesses might be viable replacements. Those efforts were short-lived and have been replaced by larger-scale efforts funded by the federal government. One consultant reported very recently that mid-scale value added timber manufacturing would be viable in Sitka if the Forest Service were willing and able to provide the assured timber feed stock supply that is a perquisite to the idea becoming reality. The Conference is currently reviewing the consultant’s work and will likely join with others in asking the Forest Service to make the necessary commitments. Trends in the fishing industry, exemplified by recent events in Pelican, suggest that recovery and diversification efforts needed in the timber component of southeast Alaska’s economy will soon be needed in the fisheries component as well Economic Preservation - Decisions the Regional Forester makes about management and use of the values and resources of the Tongass National Forest touch the lives of virtually every person, family, and community in southeast Alaska. For that reason, Southeast Conference has been an active participant in the TLMP revision process now underway. In doing so, the Conference is seeking development and presentation for public comment of a wide range of possible alternatives (including presentation of what would be required to restore jobs lost post-TTRA), accompanied by a solid analysis of the economic and social impacts of each alternative considered, so that our people and communities will be fully informed, possessing all the information they need to partici- pate effectively in the process. At the bottom line, the Conference seeks to ensure that no jobs disappear unnecessarily, and that if jobs must disappear as a result of the Regional Forester’s de- cision, that result is clear to all concerned at the time. Economic Development - Southeast Conference is a participant in the Technical Review Team that reviews the work of the EPA contractor preparing a new Environmental Impact Statement for the Alaska-Juneau Mine Project. As in everything else, the Conference seeks to ensure that complete, accurate information about the project, project alternatives, and the economic, social, and environmental consequences of those alternatives on the people and communities of southeast Alaska will be available to the public in a timely way. E-3 APPENDIX F RC&D PROGRAM SPECIAL PROVISIONS (1) Nondiscrimination Statement - This program will be conducted in compliance with the nondiscrimination provisions as contained in Title VI and VII of the Civil Rights Act of 1964 as amended, the Civil Rights Restoration Act of 1987 (Pub. Law 100-259) and other nondiscrimination statutes; namely, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and in accordance with the regulations of the Secretary of Agriculture (7 CFR-15, Subparts A & B) which provide that no person in the United States shall, on the grounds of race, color, national origin, age, sex, religion, marital status, or handicap/disability be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving federal financial and/or technical assistance from the Department of Agriculture or any agency thereof. (2) Member of Congress - No member of, or delegate to, Congress, or resident commissioner after his election or appointment, and either before or after he has qualified, and no officer, agent, or employee of the government shall be admitted to any share or part of this agreement, or any benefit to arise therefrom. The provision herein with respect to the interest or members of, or delegates to, Congress, and resident commissioners shall not be construed to extend to any incorporated company where such agreement is made for the general benefit of such incorporated company. (3) Drug-Free Workplace - By signing this agreement, the non-federal participants are providing the certification set out below. If it is later determined that the participants knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, the NRCS, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. Controlled substance means a controlled substance in Schedules | through V of the Controlled Substances Act (21 U.S.C 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); Conviction means a finding of (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; Criminal drug statute means a Federal or non-Federal criminal statute involving the manufacturing, distribution, dispensing, use, or possession of any controlled substance; Employee means the employee of a grantee directly engaged in the performance of work under a grant, including: (1) All direct charge employees; (2) All indirect charge employees unless their impact or involvement is insignificant to the performance of the grant; and, (3) Temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet matching requirements; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). F-1 Certification: A. The participant(s) certify that it will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition: 2. Establishing an ongoing drug-free awareness program to inform employees about -- (a) The danger of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug-free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and, (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. 3. Making it a requirement that each employee be engaged in the performance of the grant and be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will -- (a) Abide by the terms of the statement, and, (b) Notifying the employee in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction; 5. Notifying the NRCS in writing, within ten (10) calendar days after receiving notice under paragraph (4)(b), from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under paragraph 4(b), with respect to any employee who is so convicted -- (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended, or, (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; F-2 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1-6. 8. Agencies shall keep the original of all disclosure reports in the official files of the agency. B. The participant(s) may provide a list of the site(s) for the performance of work done in connection with a specific project or other agreement. (4) Certificati i i CF (Applicable if this agreement exceeds $100,000) - The non-federal participants certify to the best of their knowledge or belief, that: A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the participants, to any person for influencing or attempting to influence an officer or employee of an agency, Member of Congress, an officer or employer of Congress, or a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The participant(s) shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. (5) ¢ rding D Primary Cov’ i EF A. The non-federal participant(s) certify to the best of their knowledge and belief that it and its principles: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by an Federal department or agency; (2) Have not within a three (3) year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust F-3 statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any offenses enumerated in paragraph A(2) of this certification; and, (4) Have not within a three (3) year period preceding this application/proposal has one or more public transactions (Federal, State or local) terminated for cause or default. B. Where the primary participants are unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this agreement. (6) Assurances and Compliance - As a condition of the grant or cooperative agreement, the recipient assures and certifies that it is in compliance with, and will comply in the course of the agreement with, all applicable laws, regulations, Executive Orders and other generally applicable requirements, including those set out in 7 CFR 3015, 3016, 3017, 3018, and 3051 which hereby are incorporated in this agreement by reference, and such other statutory provisions as are specifically set forth herein. (7) Examination of Records - Gives the NRCS or the Comptroller General, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to this agreement. Retain all records related to this agreement for a period of three years after completion of the terms of this agreement with the applicable OMB Circular. (8) Clean Air and Water Certification (Applicable if this agreement exceeds $100,000, ora facility to be used has been the subject of a conviction under the Clean Air Act (42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act (33 U.S.C. 1319(c)) and is listed by EPA, or is not otherwise exempt.) The participating organization(s) signatory to this agreement certifies as follows: (a) Any facility to be utilized in the performance of this proposed agreement (indicate) is , is not , listed on the Environmental Protection Agency List of Violating Facilities. (b) To promptly notify the State Administrative Officer prior to the signing of this agreement by NRCS, of the receipt of any communication from the Director, Office of Federal Activities, U.S. Environmental Protection Agency, indicating that any facility which is proposed for use for the performance of the agreement is under consideration to be listed on the Environmental Protection Agency List of Violating Facilities. (c) To include substantially this certification, including this subparagraph (c), in every nonexempt subagreement. F-4 CLEAN AIR AND WATER CLAUSE (Applicable only if the agreement exceeds $100,000, or a facility to be used has been the subject of a conviction under the Clean Air Act (42 U.S.C. 1857c-8(c)(1) or the Federal Water Pollution Control Act (33 U.S.C. 1319(c)) and is listed by EPA or the agreement is not otherwise exempt.) A. The participating organization(s) signatory to this agreement agrees as follows: (1) To comply with all the requirements of section 114 of the Clean Air Act as amended (42 U.S.C. 1857, et seq., as amended by Public Law 91-604) and section 308 of the Federal Water Pollution Contro! Act (33 U.S.C. 1251 et seq., as amended by Public Law 92-500), respectively, relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in section 114 and section 308 of the Air Act and the Water Act, respectively, and all regulations and guidelines issued thereunder before the signing of this agreement by NRCS. (2) That no portion of the work required by this agreement will be performed in a facility listed on the Environmental Protection Agency List of Violating Facilities on the date when this agreement was signed by NRCS unless and until the EPA eliminates the name of such facility or facilities from such listing. (3) To use their best efforts to comply with clean air standards and clean water standards at the facilities in which the agreement is being performed. (4) To insert the substance of the provisions of this clause in any nonexempt subagreement, including this subparagraph A.(4). B. The terms used in this clause have the following meanings: (1) The term "Air Act" means the Clean Air Act, as amended (42 U.S.C. 1857 et seq., as amended by Public Law 91-604): (2) The term "Water Act" means Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq., as amended by Public Law 92-500). - (3) The term "clean air standards" means any enforceable rules, regulations, guidelines, standards, limitations, orders, controls, prohibitions, or other requirements which are contained in, issued under, or otherwise adopted pursuant to the Air Act or Executive Order 11738, an applicable implementation plan as described in section 110(d) of the Clean Air Act (42 U.S.C. 1857c-5(d)), and approved implementation procedure or plan under section 111(c) or section 111(d), respectively, of the Air Act (42 U.S.C. 1857c-6(c) or (d)), or an approved implementation procedure under section 112(d) of the Air Act (42 U.S.C. 1857c-7(d)). (4) The term "clean water standards" means any enforceable limitation, control, condition, prohibition, standards, or other requirement which is promulgated pursuant to the Water Act or contained in a permit issued to a discharger by the Environmental Protection Agency or by a State under an approved program, as authorized by section 402 of the Water Act (33 U.S.C. 1342), or by a local government to ensure compliance with pertreatment regulations as required by section 307 of the Water Act (3 U.S.C. 1317). (5) The term "compliance" means compliance with clean air or water standards. Compliance shall also mean compliance with the scheduled or plan ordered or approved by a court of competent jurisdiction, the Environmental Protection Agency or any air or water pollution control issued pursuant thereto. F-5