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Council hears options to shore up harbor funds after ferry loss; RFP, safety repairs and parking fees on agenda
Summary
At a March 23, 2026 work session, city administration said harbor revenue fell after the Seldovia Bay Ferry left, recommended $18,000 for dock safety repairs and proposed using deferred Jack Law Bay revenue for a dock replacement; council members suggested pay showers, a washateria and parking fees to attract traffic.
City Manager Heidi told the council March 23 that the city's small-boat harbor and municipal dock funds have tightened after the loss of ferry service and that staff have identified near-term repairs and options to boost revenue.
Heidi said port-fee receipts fell from roughly $25,000 in prior years to a $10,000 projection after the Seldovia Bay Ferry stopped service, and she noted an anticipated FY26 port-fee balance of $19,470 and a projected FY27 ending balance of about $4,370 under current assumptions. "The port fee has gone down... with the loss of the Seldovia Bay Ferry in the harbor," she said.
To address immediate safety needs, Heidi recommended an $18,000 appropriation (from an unassigned major maintenance and repair fund) to repair or replace four dock safety ladders and improve six platforms, plus line-item materials including about $7,100 for finger-hinge pins and $10,000 toward boiler and deck work if grants do not materialize.
The administration also proposed transferring $140,000 from the Jack Law Bay dock deferred-revenue account into the harbor fund to support the Jack Law Bay Dock replacement project; Heidi said RFP responses and grant tranches (she cited potential Denali Commission and PIDP funding) will determine whether the full amount is needed.
Council members offered ways to attract traffic and revenue: one suggested installing pay showers or a small public washateria to increase overnight stays and make the harbor more attractive to tour operators; another urged working with the tribe and IHS grant programs for funding. "Showers would are kind of essential," one council participant said, urging modest amenities to keep visitors in town longer.
Members also discussed parking-transient moorage fees and enforcement options (honor-box systems, numbered stalls and a drop box), with Heidi saying the code allows charges but historically the city has deferred fees until the dock is replaced. She offered to present fee-schedule scenarios for council review.
Heidi said the harbor has reserve accounts and that staff will continue pursuing grants and RFP work; no formal action was taken at the session. Council asked staff to return with detailed figures and proposed fee models when the capital-project packet and fee-schedule draft are ready.
