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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Ports and Harbor Commission Work Session on Rates and Fees – February 18, 2026

Meeting Portal — Wednesday, February 18, 2026

BodyValdez, Alaska

SessionMeeting Portal

DateWednesday, February 18, 2026

StatusFILED

Video Record

0:00 / 1:21:28

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:00

She hasn't been doing it since she got Louise, I don't think.

0:02

Oh, all right.

0:04

Is everyone good to start?

0:08

We have three.

0:09

So we can call ourselves to order for the work session.

0:14

February 18th at 6 p.m.

0:15

Here we are.

0:18

I'm guessing, Sarah, do you want us to go through this with the discussion item is um I mean naming rates?

0:27

Do you want us to go just shoot questions into you or do you want to I would say shoot quite if you guys have read through it, then just shoot questions at me.

0:35

Um if not, then we can go through it red line by red line, or we can strike through Zar.

0:41

How would you prefer?

0:41

Do you want to go through red line by red line or that might be best?

0:46

Keep in mind this recommendation is your recommendation.

0:49

Staff's just trying to give you a starting place.

0:52

Okay.

0:53

Okay, so I did refer in red line.

0:55

Review.

0:56

Okay.

0:56

Yep.

0:57

So obviously bullet points on the agenda statement.

1:01

Um charging mortgage for saints gifts if they are not stored on deck of the boat.

1:10

Uh Homer is currently doing that.

1:13

Um I know people that were from Homer that came here last summer were not in favor of that, and we're super happy that we were not charging for it.

1:21

However, I also know when, especially on Adoc when they're tied.

1:28

Parallel behind them.

1:29

Instead of horizontal, it's it's a pain for the the tour boats to get out and around them.

1:35

Or even tenders moving, yeah, and trying to turn.

1:37

So ultimately, you know, part of this was brought up too because we have 20 foot slips that are sitting empty.

1:43

So either you pay for it or buy a 20-foot slip and just store it over there and it's it's out of the way, and you don't have to worry about it.

1:51

Uh again, these are these are just throwing it out there.

1:57

Um we do have uh for Jeremy's recommendation is instead of going back and doing a three-year thing every three years, is just have a blanket.

2:08

There's gonna be an increase.

2:10

It could be anywhere from one.

2:12

Uh this last three year go-around, we did from one to five percent, but moving forward starting in 2028, we put from one to ten percent based on whatever the market's doing.

2:23

Uh I would just do the CPI.

2:25

Whatever the I don't think five percent is gonna get you.

2:30

City manager and I have actually talked about it a little bit.

2:33

Um we think we agree with you a little bit that your rates are right at a point where if you keep raising them, you're gonna start losing more customers.

2:44

And so I do think you need to have a CPI in there.

2:47

There was a long time when the port and the harbor weren't raising their rates for many, many, many, many years, and like the airport, and so we put those two percent increases in there just to try to keep up.

2:58

But the harbor's been raising and raising or easing, so don't let me make that recommendation, but I do think you need to have something in there for CPI over time.

3:09

My my only note is I mean, one to ten percent is a really it that's huge.

3:13

Well, it's also doesn't allow anyone to plan.

3:15

I mean, it could be one percent one year and then the next year it's gonna be nine, and the next year it's gonna be and so if you're trying to decide if you can afford the boat to moor it and or expenses to operate your business, you don't it's a huge range.

3:28

So um, I don't know if you know anchor CPI plus one percent.

3:32

I I is there a formula that would be more like someone would be, oh, I can predict that each year.

3:37

My question is I guess if this if there is no CPI increase and we stay status quo and then we're back in the red because we're not being able to cover our own expenses.

3:46

That's we can lower this back down to five percent, or just put one to five percent annually or based on CPI.

3:55

CPI or not CPI not to exceed.

3:59

I mean anyone and I would clarify which CPI you're using.

4:04

Um that way someone can actually look it up.

4:07

So is it is it anchorage plus one percent?

4:09

Is it I mean whatever the calculation is.

4:12

The city uses to calculate R.

4:15

Yeah.

4:15

So our acreage plus, yeah.

4:18

And and I think that's fair.

4:20

I like I said, I just if we're gonna want to make sure that we're keep doing this annually instead of having to come back every single year and say, oh, we're changing rates, oh, we're changing rates.

4:29

I mean, unless it's something extravagant, like a brand new fee or something.

4:34

Yeah, I mean, I would I would my suggestion my note was just something that's tangible and that anyone can look up, and if we want to do a not to exceed, that's fine as well.

Discussion Breakdown — Share of Meeting

Harbor Management█████████████████████████████████████████████73%

Technology and Innovation█████8%

Budget Equity Analysis████6%

Public Safety██4%

Fines and Penalties██4%

Recreational Vehicle Regulation█2%

Public Engagement█2%

Legal█1%

Summary of Proceedings

Ports and Harbor Commission Work Session on Rates and Fees – February 18, 2026

The Ports and Harbor Commission held a work session on February 18, 2026, at 6:00 PM in the Council Chambers to discuss a recommendation to the Commission on naming rates and fees for use of facilities in the Valdez Harbors and to repeal Resolution No. 24-51. Commissioners and staff reviewed proposed changes line by line, debated various fee structures, and agreed to hold another discussion before a formal vote.

Discussion Items

Skiff Storage Fees: Staff proposed charging for skiffs not stored on the vessel's deck, citing safety and space issues. A commissioner noted that Homer charges for such storage and that Valdez currently does not. The discussion included concerns about parallel vs. horizontal mooring and the availability of 20-foot slips for skiff storage.
Annual Rate Increases: The commission debated a proposed blanket annual increase of 1-10% starting in 2028. Concerns were raised about unpredictability for customers. Staff suggested using CPI (Anchorage CPI + 1%) with a not-to-exceed cap. The city manager noted rates are at a point where further increases may lose customers. The group leaned toward a CPI-based formula to allow planning.
Timing of Rate Changes: Discussion centered on aligning rate changes with the budget cycle (August) and publishing rates by September 1 for a January 1 effective date, giving customers a six-month planning window. The possibility of making rate increases automatic via resolution was considered to avoid annual council approval.
Tour Dock Moorage: Staff proposed a separate 1% annual increase for tour dock moorage, but commissioners argued it should follow the same CPI-based increase as other rates. The tour dock already has higher per-foot rates and commercial passenger fees.
Transient Slip Rentals: Staff proposed using a formula: monthly transient = 1/60th of annual rate, daily = 1/5th of monthly. This mirrors Kodiak's approach and would adjust automatically with annual increases.
Auxiliary Vessels (Skiffs, Kayaks, Paddleboards): Staff proposed including kayaks and paddleboards in skiff storage fees. There was debate over charging by square footage vs. vessel length. The term "vessel" was suggested to cover all watercraft.
Upland Storage and Parking: Winter storage rates proposed to increase from $2 to $3 (first increase in 20 years). Long-term parking (over 7 days) would be charged. A proposal to charge for any vehicle with a trailer (section H) sparked discussion about enforcement challenges and potential revenue vs. labor costs. Commissioners considered rolling parking costs into launch fees or slip fees. Enforcing trailer parking at the tour dock lot was debated; some favored a no-trailer policy during summer. Homer Harbor advised against implementing parking fees unless absolutely necessary due to high labor demands.
Upland Overnight Camping: Proposed rate of $40/night from October 15 to April 15, with an additional $15/day for power. The commission noted that RV parks are available in summer and that unauthorized camping would be fined.
Travel Lift Fees: Staff proposed flat fees: $350 for vessels up to 40 feet, $450 over 40 feet, replacing incremental per-foot charges. Commissioners noted this is still lower than other West Coast and Alaska boatyards.
Lift Operator Hours: Start time moved from 9 AM to 10 AM to allow for daily inspections.
Grid, Crane, and Fish Pump Fees: First-time card fee of $50 (previously free), replacement cards $20. Labor rates for HAZWOPER-trained staff would be higher. A $50/day fee for leaving a pump on a vessel overnight was added.
Dump Station and Bilge Pump: Dump station use by appointment at $10 plus labor during winter. Bilge pump-out fee proposed to incentivize pumping before haul-out; some commissioners suggested making it mandatory.
Move List Fee: Proposed $100 fee for slip change requests, similar to Homer's practice.
Electrical Service Fee: A fee of $148 (based on Newport, Oregon rates) for troubleshooting electrical issues, noting that most issues are vessel-related. The new GFCI systems are causing increased staff time.
Pressure Washer Rental: $50 rental fee proposed; staff clarified it is a service, not competition with local businesses. A waiver or agreement may be required for insurance purposes.
Launch Ramp Fees: Daily fee proposed to increase from $10 to $15, seasonal from $75 to $100.
Fines and Miscellaneous Fees: Failure to register vessel: $500 fine (city code limit). Failure to provide insurance: proposed $5/day (Cordova charges $50/day but prorates). Denied moorage: $300/day (mimicking Kodiak). Vessel disposal: cost plus 25%. Impound fee: proposed $500/day plus labor. A bad check fee of $35 was reinstated. Collection fee: not to exceed $500 or 100% of past due amount, whichever is less.
Maintenance and Washdown Pads: Storage rate for pads simplified; vessels on pad for over 3 months face double fee unless actively working (harbormaster discretion).
Fish Fillet Station Fees: Increases proposed through 2028 to offset replacement costs; commissioners noted users should police the area to avoid further increases.
Other Items: Environmental fee maintained at $750/year for SWPPP permit. The commission discussed requiring bilge pumping before haul-out, possibly in the lift agreement. Staff noted that the resolution currently says "January 1 to December 31, 2026" and will be updated to 2027.

Key Outcomes

No formal vote was taken; the work session was for discussion only.
The commission agreed to hold one more discussion session on the proposed rates and fees before bringing a formal recommendation to the full Ports and Harbor Commission.
Staff will prepare revenue projections based on the proposed changes for the next discussion.
The commission emphasized the importance of providing public notice and opportunity for comment before adoption. A quasi-public hearing at a future discussion item was suggested.
Staff will consult with legal counsel on several items, including the distinction between fines and fees, city code limits on fines, and the legality of automatic CPI-based increases without council approval each year.
The commission directed staff to develop a schedule that would publish rate changes by September 1 for a January 1 effective date, providing customers with a six-month planning window.

Meeting Transcript

She hasn't been doing it since she got Louise, I don't think. Oh, all right. Is everyone good to start? We have three. So we can call ourselves to order for the work session. February 18th at 6 p.m. Here we are. I'm guessing, Sarah, do you want us to go through this with the discussion item is um I mean naming rates? Do you want us to go just shoot questions into you or do you want to I would say shoot quite if you guys have read through it, then just shoot questions at me. Um if not, then we can go through it red line by red line, or we can strike through Zar. How would you prefer? Do you want to go through red line by red line or that might be best? Keep in mind this recommendation is your recommendation. Staff's just trying to give you a starting place. Okay. Okay, so I did refer in red line. Review. Okay. Yep. So obviously bullet points on the agenda statement. Um charging mortgage for saints gifts if they are not stored on deck of the boat. Uh Homer is currently doing that. Um I know people that were from Homer that came here last summer were not in favor of that, and we're super happy that we were not charging for it. However, I also know when, especially on Adoc when they're tied. Parallel behind them. Instead of horizontal, it's it's a pain for the the tour boats to get out and around them. Or even tenders moving, yeah, and trying to turn. So ultimately, you know, part of this was brought up too because we have 20 foot slips that are sitting empty. So either you pay for it or buy a 20-foot slip and just store it over there and it's it's out of the way, and you don't have to worry about it. Uh again, these are these are just throwing it out there. Um we do have uh for Jeremy's recommendation is instead of going back and doing a three-year thing every three years, is just have a blanket. There's gonna be an increase. It could be anywhere from one. Uh this last three year go-around, we did from one to five percent, but moving forward starting in 2028, we put from one to ten percent based on whatever the market's doing. Uh I would just do the CPI. Whatever the I don't think five percent is gonna get you. City manager and I have actually talked about it a little bit. Um we think we agree with you a little bit that your rates are right at a point where if you keep raising them, you're gonna start losing more customers. And so I do think you need to have a CPI in there. There was a long time when the port and the harbor weren't raising their rates for many, many, many, many years, and like the airport, and so we put those two percent increases in there just to try to keep up. But the harbor's been raising and raising or easing, so don't let me make that recommendation, but I do think you need to have something in there for CPI over time. My my only note is I mean, one to ten percent is a really it that's huge. Well, it's also doesn't allow anyone to plan. I mean, it could be one percent one year and then the next year it's gonna be nine, and the next year it's gonna be and so if you're trying to decide if you can afford the boat to moor it and or expenses to operate your business, you don't it's a huge range. So um, I don't know if you know anchor CPI plus one percent. I I is there a formula that would be more like someone would be, oh, I can predict that each year. My question is I guess if this if there is no CPI increase and we stay status quo and then we're back in the red because we're not being able to cover our own expenses. That's we can lower this back down to five percent, or just put one to five percent annually or based on CPI. CPI or not CPI not to exceed. I mean anyone and I would clarify which CPI you're using.

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