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Assembly weighs using commercial-passenger-vessel fees for covered waiting area at Oscar Dock
Summary
The borough staff briefed the assembly on a city proposal to use commercial-passenger-vessel (CPV) fee funds toward a covered structure and building at Oscar Dock; assembly members asked for more design and funding details before committing money.
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Kodiak Island Borough staff asked the assembly on April 10 whether the borough should consider using commercial-passenger-vessel (CPV) fee revenues to help fund a covered waiting area and structural improvements at Oscar Dock in St. Paul Harbor.
The city of Kodiak is advancing a design—reported as about 35% complete—for a steel building and covered overhead at the floating dock that would give cruise-ship passengers shelter while they wait to board excursions. Community Development staff described the CPV fund as restricted: the state’s CPV payments go to the first six Alaska ports visited by a cruise ship, and the fee revenue is split roughly half to the city and half to the borough for projects that “improve the cruise-ship experience while in port,” per the staff summary.
The borough’s CPV account balance was reported as $121,608.22 as of April 4. Staff said the city estimates for the Oscar Dock improvements varied: a March 27 memo referenced a $1.3 million estimate (with the city at 35% design) and a later handout listed $1,837,000. The city has identified about $1,000,000 in potential revenue sources but does not have full funding to start the project this year.
Assemblymembers asked whether the proposed structure could provide secondary community benefits beyond cruise passengers. Amy, the borough manager, said the structure had been designed with net-mending and harbor maintenance uses in mind: “Fixing nets. It is designed actually, to be a net mending area,” she told the assembly. Members also discussed whether the borough’s limited CPV funds should be saved for other projects and whether the borough should request a role in the design process if funds are provided.
Assemblymember Bo asked for clarity on prior CPV spending in Kodiak; staff said the borough previously contributed just over $240,000 to the Portland Loo (public restroom) installation and that the CPV tax only started flowing to Kodiak in 2019, so few prior projects have used the fund. Several members said they could support participation in the project only if the borough is allowed input on design and if the city provides clearer cost and reliability information; members noted issues with existing port restrooms that have been intermittently out of service.
No action was taken at the work session. Staff recommended returning the proposal when the city’s design is further developed and funding sources are clearer; several assemblymembers asked that, if the borough provides funds, staff participate in design at a meaningful level and that staff explore other potential uses of the CPV balance while the project remains unfunded for at least one to two years.

