Skagway Assembly tables PIDP matching-funds resolution, approves KPFF permit work pending Yukon reimbursement

The Skagway Assembly on Aug. 21 referred a resolution that would commit municipal matching funds for a federal Port Infrastructure Development Program (PIDP) grant to the Ports & Harbors Advisory Board and approved engineering work to move the marine services platform (MSP) project into permitting.

City staff told the assembly the resolution before it shows a 25% municipal match in the draft and that the packet includes updated cost estimates; staff noted the packet figure for a 25% match is $12,370,922. The assembly voted to postpone final action on the resolution and asked Ports & Harbors to vet design questions before the Sept. 4 meeting so the municipality can still meet the Sept. 10 application deadline.

The assembly separately approved a scope-and-fee proposal from engineering firm KPFF for environmental-permitting work for the MSP at a not-to-exceed cost of $120,037, contingent on a transfer payment agreement with the Government of Yukon to reimburse Skagway for those costs. City staff said the permitting process typically takes 18–24 months, that the application needs roughly 35% design documentation, and that there will be additional public input opportunities as the plans are refined.

In describing the project, the city manager said the MSP design would include a fixed multipurpose concrete dock to handle heavy cargo, relocation of a fuel header to the north side of the dock, demolition of an existing timber dock, uplands improvements (including removal of an underground conveyor trench and creating cargo storage space), and a nonfixed roll-on/roll-off ramp that could be repositioned as needed. Staff said the design aims for flexibility but cautioned that the municipal dollar commitment established by a resolution would limit later changes that increase total cost.

The Government of Yukon’s Minister of Economic Development addressed the assembly during the KPFF discussion and said Yukon supports advancing permitting and intends to reimburse Skagway for permitting-phase expenses if an intergovernmental cooperation agreement is finalized. The minister characterized the MSP as a shared strategic priority that would support freight, fuel handling and regional economies.

Assemblymember Hansen urged additional vetting by Ports & Harbors before finalizing the resolution and moved that the assembly refer the matching-funds resolution for review; the motion to refer passed by roll call. The KPFF scope-and-fee approval passed by roll call later in the meeting.

The manager and staff noted that, if the PIDP award is not made, the assembly would not be bound to construct the project; the motion to approve KPFF work was described as an effort to keep the project “shovel-ready” if federal funds are awarded. The application deadline for the PIDP grant is Sept. 10.

What happens next: the matching-funds resolution will receive Ports & Harbors review and the assembly will reconsider it at its next meeting, while KPFF may begin permitting work once a transfer payment agreement is executed.