Kodiak Shipyard rates will soon rise, but they likely will not skyrocket next year as originally planned.

The city’s ports and harbors advisory board has changed its recommendation on a plan to bring the Kodiak Shipyard back into the black.

In a Tuesday meeting, the board voted 6-0 to have the shipyard, which has been operating with a deficit since it opened in 2009, increase rates by 20 percent each year for a three-year period.

The board’s original plan would increase rates 40 percent next year and 20 percent the following year to make up the deficit more quickly.

Some board members, citing input from the Kodiak City Council, thought the drastic immediate increase would deter boat owners from using the Kodiak Shipyard.

“The thing with the 20-20-20 was to soften the impact of a rate increase so as not to chase away market shares,” said board member Skip Bolton. “To try to pull in boats while not chasing boats away. It’s easier to tolerate with that approach.”

The board presented its 40-20 plan to the Kodiak City Council last month but reconsidered after reviewing the council’s feedback and receiving further input.

“They (city councilmen) are more concerned about a plan that’s going to work for the long haul versus a plan for getting operating expenses in the black,” said board member Tim Abena. “To me, it makes sense to slow down this rate increase schedule for various reasons.”

The board will keep the 40-20 option on the table as a second choice.

The board will present its new preferred plan to the city council March 26, and it hopes to get an updated resolution in front of the council at its regular meeting March 28.

In other business, crewmen from the U.S. Coast Guard cutter SPAR presented the results of a review of Kodiak’s waterways.

The survey included St. Paul Harbor, St. Herman Harbor and Womens Bay. The review is conducted nationwide, and Kodiak surveys are updated every five years. Results are used to plan improvements paid for through the Coast Guard's budget.

Based on the survey, SPAR’s crew is recommending the buoys at the St. Paul Harbor entrance channel and the Womens Bay entrance channel be lighted. That recommendation now goes to Coast Guard District 17 headquarters in Juneau.

Contact Mirror writer Nicole Klauss at nklauss@kodiakdailymirror.com.

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