Depoe Bay — The Depoe Bay Harbor Commission spent the bulk of its May 2025 meeting on ways to keep the city fuel dock open and reduce the harbor fund deficit, considering four options: a card‑lock system, a user co‑op, a private lease, or bulk purchasing agreements.

Commissioners and harbor staff said the dock’s operation affects local charter businesses, whale‑watch operators and recreational boaters who rely on the harbor for tourism revenue and local jobs. "We're trying to keep the fuel dock open," the commission chair said; the body agreed to have staff produce updated background information and bring the options back for discussion at a joint work session with the City Council scheduled for June 11 at 5 p.m. (no public input).

Why it matters: Harbor users told commissioners that higher dock fees and fuel costs threaten small businesses and local tourism. Several commenters urged the commission to examine whether non‑harbor revenues — such as transient room tax — or other city funding can help cover harbor costs. "The bottom line is: why are we trying to figure out ways for harbor users to come up with this deficit?" said Noiley Aiken, a harbor business owner, referring to what she described as a lack of clarity about the fund shortfall.

Most of the public discussion focused on practical ways to operate the fuel system if the city no longer wants to staff pumps. The commission repeatedly raised the state fire marshal’s rules and Department of Environmental Quality (DEQ) requirements as regulatory constraints. Commissioners and members of the public described a card‑lock system used on land (where fuel dispensers are accessible by credentialed cards) but noted the state fire marshal’s office restricts card‑lock systems to motor vehicles that use highways, creating an ambiguity for marine fueling over water. "The fire state fire marshal's office... they do allow card lock systems, but they're for motor vehicles," Kim, the harbor master, said.

Participants sketched four primary options:
- Card‑lock / credentialed access: Would let credentialed users buy fuel without a city employee at the pump but may require a regulatory waiver or interpretation from the state fire marshal and additional DEQ compliance.
- User co‑op: Charter operators and frequent users could form a cooperative that would lease fueling capability from the city and manage dispensing, training and insurance. Proponents said a co‑op could buy fuel in bulk and pass volume discounts to members.
- Private lease / third‑party operator: The city could lease the fuel facility to a private operator via an RFP and receive lease revenue; commissioners noted lease terms would be set by City Council and require a market price to solicit proposals.
- City bulk purchase agreements: The city could negotiate set‑price purchases for set volumes to stabilize cost, though that exposes the buyer to price risk over the contract period.

Insurance and operating costs were cited as determinative. The commission reviewed an earlier accounting line that listed a $9,000 insurance item; a staff member told the group an updated estimate of the city's portion for fuel‑related insurance would be roughly $1,500 per year. Those figures will be verified in follow‑up materials. Commissioners also discussed whether leasing or outsourcing fueling would reduce the city's labor costs and liability.

Multiple speakers urged clearer financial transparency before asking harbor users to pay more. "We need to get to the bottom of the financials," Noiley Aiken said, arguing that transient room tax and tourist spending support businesses that depend on the harbor.

Next steps: The commission directed staff to prepare updated background material for each option — including likely regulatory requirements (state fire marshal, DEQ), insurance implications, draft lease terms and sample bulk‑purchase scenarios — so harbor users can provide informed feedback at the June 11 work session. Several charter operators volunteered to help gather user input after staff provides the updated materials.

The meeting did not include a vote to change fuel operations or set fees; commissioners framed the work as exploratory and preparatory for the council work session where final direction and any council action would be decided.