In a virtual meeting at the Ted Ferry Civic Center last week, a handful of cruise line representatives and staff from the Cruise Line International Association were projected on a large screen via Zoom for a biannual meeting with the city. Ketchikan City Council members sat at large tables facing each other.
These meetings with the cruise line association started last year to discuss changes or expansions for the visiting cruise lines. They meet in the spring and in the fall.
Some council members aired concerns to the cruise line representatives. Council member Jai Mahtani said he wants the cruise lines to pay more taxes. Right now, they pay a head tax, which is a fee that is paid per passenger, as well as a commercial passenger vessel tax, which is shared among port communities from larger ships. This revenue goes toward port improvements and other infrastructure upgrades.
“I’d like to see cruise companies help us with the reality of what’s on the ground right now to mitigate the concerns, the environmental concerns, the infrastructure concerns, concerns of our citizens, and step up financially,” Mahtani said.
He suggested an increase in head tax, or to have passengers contribute to the city’s utilities, like water and sewer. Whatever the solution, he said, he urges cruise lines to look at options to keep the visitors’ experience positive. He said that, in turn, will help enhance the quality of life for residents.
“We do not want to get to a point where we are congested and the visitor experience is horrible and we start getting reviews that are really negative,” Mahtani said.
The council has recently approved a slew of utility rate increases. Council member Riley Gass echoed Mahtani’s comments on the need for more financial contribution from the cruise lines. He grew up on the island, and said overcrowding in the summers, as well as rising costs, have pushed people out. It’s anecdotal, he said, but people he never thought would leave, have left.
“In order for this whole thing to work, we have to have a strong community year round that people can afford and want to stay in,” Gass said. “Part of that is, like I said earlier, paying for our infrastructure.”
Utility rates are expected to go up over 40% in the next five years. Gass wants cruise lines to carry some of that weight.
“They’re all flushing the toilets. They’re all putting garbage in the cans. Not all, but many of them are getting on ginormous busses that our roads weren’t really built for, which do wear out our roads,” Gass said.
Council member Abby Bradberry brought up recent environmental concerns about the cruise ships polluting Ketchikan’s water. Alaska’s biggest cruise shop operator has reportedly refused to provide state regulators with data about severe water pollution, including in Ketchikan waters. The Cruise Line International Association’s Lanie Downs told her all member lines adhere to strong environmental policies.
City staff has been working with the cruise line association for over a year to establish a memorandum of agreement. Tourism manager Laurie Booyse said that after 11 iterations and several rounds of legal review, all parties seem to finally approve of the document.
The MOA is based on the agreement Juneau has with the cruise line association. That agreement was a product of an expensive legal battle. Booyse said that’s what they’re trying to avoid in Ketchikan.
“It’s just about a way for everyone to say, here are the rules that we are all going to abide by, and now let’s move forward together,” Booyse said.
Most of the agreement is about port and wharfage fees, like an 18-month minimum notice for fee increases. It also establishes when the parties will meet and how they will resolve disputes before pursuing legal action. It –states the agreement will not interfere with the council’s responsibility to govern or make final decisions on fees.
The document is a little over 5 pages long — around half of what it once was, Booyse says — but it’s supposed to serve as something to build on long-term.
“So yeah, it took a long time, and I know some people have complained about that,” Booyse said. “But when you are when you’re creating an agreement that is going to be the basis for your relationship, you certainly don’t want to rush it or make it something that you need to change right away.”
The agreement has an initial term of five years with an automatic five year renewal. It will be presented to the board at their regular May 7 meeting.
