Per-passenger fee increase for charter vessels proposed by Docks and Harbors

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Whale watching operators say costs should be more equitably shared, residents say current situation at Statter isn’t equitable to residents

By Ellie Ruel

Juneau Independent

Over 30 vessel operators and noncommercial Statter Harbor users filled the Mendenhall Valley Public Library meeting room earlier this month to weigh in on a proposed 266% increase to per-passenger fees levied on commercial boats.

Chartered vessels currently pay $2.05 per passenger to use Statter Harbor. Port Director Carl Uchytil said based on capital project and staffing needs the proposed increase would make the fee $7.50. Uchytil said that’s based on analysis of other tourism destination passenger fees, citing proposed Mendenhall Glacier fee increases.

In an Aug. 18 memo to the board, Uchytil noted while Docks and Harbors is financially sound, projections for fiscal year 2027 place the department’s enterprise fund at a final balance of $1.2 million, possibly lower than ever before.

“Recent Board direction has identified expansion of the North Douglas Launch Ramp facility, replacement of the Statter Harbor breakwater, recapitalization of the Aurora Harbor Office Building, Douglas Harbor uplands improvements, purchase of the UAS property between Harris/Aurora Harbors and Statter Phase IV as needed capital improvement projects in excess of tens of millions of dollars,” the memo states.

A project replacing the Statter Harbor breakwater is underway and is anticipated to cost $100 million, Uchytil said. Docks and Harbors will likely need to cover $20 million as a local match.

“To get $10 million for revenue bonds for this breakwater, we need to sell $10 million revenue bonds, and we need to generate $1 million of new revenue for 15 years,” Uchytil said.

Docks & Harbors has collected $3,349,539 in revenue from passenger-for-hire fees since they were established in 2005, according to the agenda packet from the hearing.

Operators from the Southeast Alaska Whale Watchers Association (SEAWWA) presented a case against the increase, saying it would unfairly harm local businesses.

“These unpredicted price increases, such as the proposed 266% rate increase, will come directly out of local family businesses' bottom line,” said Robie Janes, general manager of Gastineau Guiding. “The emerging markets in Southeast Alaska are getting a growing market share of shore excursions outside of Juneau. So our competitive pricing is extremely important.”

Janes said SEAWWA proposes reevaluating the rate hike, or adjusting it to be progressive and compatible with multi-year pricing contracts with cruise companies. He also said capital improvement funding should be separated from operational costs.

“This plan that is being proposed right now targets a single user group for capital improvement projects that benefits all users in Statter Harbor,” he said. “We agree to pay their fair share to support harbor operations, but at a 266% increase, it's just not fair or equitable in all of our opinions.”

Before opening the meeting to public testimony, Docks and Harbors Board Chair Shem Sooter said the enterprise is looking for other areas to trim, and won’t rely solely on the fee increase to fund Statter Harbor.

“We're not just targeting whale watchers. We're going to take a look at all the commercial fees in order to start funding what we recapitalize the breakwater, recapitalize the existing float system. You folks are unique, and that your business is going to end here shortly for the season,” he said. “We're not just looking at how we can raise rates; we're looking at how we can trim some fat, how we can be a little bit more efficient.”

Residents and whale watch operators listen during a Docks and Harbors hearing on a proposed passenger-for-hire fee increase on Sept. 8, 2026. (Ellie Ruel / Juneau Independent)

Some Auke Bay residents said the quality-of-life impact on locals justifies the increase. Others testified about heavy wakes from whale watching boats dangerously rocking their skiffs, and congestion and noise issues near the harbor.

“I see a brand new multimillion-dollar dock built for whale boats. I see bathrooms built for whale boats. I see a parking lot built for whale boats. I see captains parking for whale boats. When you talk about equitable, it's not equitable,” said Jim Parise. “I don't know what the right number is, but it doesn't make sense to me that the industry that is taking most advantage of Statter Harbor shouldn’t pay for it.”

Louis Jergens, co-owner of Juneau Lighthouse Tours, said he understands infrastructure needs but hopes for a solution that is more fair.

“There are going to be ripple effects between other harbors and it's going to impact other operators differently depending on how reliant they are on Statter,” Jergens said. “Couldn't come up with an example that was relevant to what we're talking about with one user group taking up the slack that isn't fairly applied to everybody.”

SEAWWA said most of the companies operating out of Juneau have agreed to policies against crowding whales, speeding in a way that creates a heavy wake, and causing dock congestion in the regular loading zone.

“We are working continuously on figuring out wakes out there,” said Serene Hutchinson, an owner of Juneau Tours. “There are a lot of boats in general, not just whale watching. So this is a work in progress.”

Sooter said the proposal will have to be further discussed before formally moving forward.

“The purpose of tonight's meeting was to decide if it was worth moving forward, and I believe it is worth moving forward after listening to everyone,” he said. ”I'm going to suggest that we put it on the ops committee for this next coming meeting, and we're going to keep this in front of us.”

The next Docks & Harbors Operations and Planning Committee meeting is scheduled for Oct. 14.

• Contact Ellie Ruel at ellie.ruel@juneauindependent.com.