An Assessment of the Local Government's Capacity to Effectively Manage Alaska's Harbors

Abstract

Port and harbor infrastructure is essential to the State of Alaska’s (State) transportation system and economy. The State constructed the majority of this infrastructure and maintained it on behalf of local communities. Following declining oil revenues in the mid-1980s, the State began the process of transferring harbor facilities to local governments, with many transfers occurring throughout the 1990s and early 2000s. Many of the facilities were at or nearing the end of their useful service life at the time of transfer. This research adopted a Soft Systems Methodology (SSM) approach to determine how the capacity of local governments evolved to sustainably provision operations, maintenance, and improvements of harbor facilities since the transfer of ownership from the State. Additionally, the research defined the barriers local governments face in developing capacity. Results constructed historical information related to the harbor transfer, including harbor conditions, transfer timelines, purchase price, and deferred maintenance funds. Findings suggest that the infrastructure received in poor condition has improved marginally since the transfer and still requires considerable improvements. Key findings indicate that local governments have grown their financial, technical, and institutional capacity to more sustainably manage harbor infrastructure since the transfer, but that the governments face obstacles in becoming fully self-sufficient. Developing sustainable user fees and financing major improvement and replacement projects are major barriers. Local governments additionally face challenges with harbor staffing and technical knowledge-building through both personnel experience and documented operation and maintenance (O&M) plans. Lastly, results indicate that there is a discrepancy in the local and State government perspectives about how to overcome barriers but also mutual understanding that they face similar challenges in managing public infrastructure. The strong, positive relationships between harbor departments and their local governments and users will aid in conversations about closing the gap between what users can afford and what harbors must charge for sustainable operations. Should subsidization of operations be necessary, these relationships are still valuable in developing additional local revenue streams for support of harbor facilities. Strong and positive regional relationships between harbors also provides opportunities to improve regional economic cooperation and development to support local governments. Additionally, harbors are commonly staffed by those with a vested interest in supporting those they serve, whether due to a personal or family background in careers such as commercial fishing or the U.S. Coast Guard. This aids employee understanding of harbor operations and promotes meaningful employment. This research finds that development and execution of O&M plans should be prioritized to better support these staff and assist in valuable knowledge transfer, especially to counteract challenges in staff turnover, recruitment, and training. Local governments find the Alaska Municipal Harbor Facility Grant Program to be incredibly valuable in supporting large and expensive harbor improvement and replacement projects that communities may not otherwise be able to afford. Suggested improvements to this program include an agreement for a minimum annual amount of State program funding; refocused scoring criteria to reflect the need for continued State support; increasing the funding cap amount to reflect the considerable increase in material costs since the program was introduced; and specific attention to supporting smaller or economically disadvantaged communities. Lastly, this research suggests more candid, collaborative conversations between the local and State governments about mutual expectations for self-sustaining governance and support.