ITEM TITLE:
Kelsey Dock Mooring Recovery and Long-Term Improvements
SUBMITTED BY: Jeremy Talbott, Ports and Harbors Director
FISCAL NOTES:
Expenditure Required: 0
Unencumbered Balance: 0
Funding Source: 0
RECOMMENDATION:
Staff recommend that the Commission review and discuss:
1. The current Kelsey Dock mooring limitations and the status of the funded temporary operational solution.
2. The continued successful use of Kelsey Dock by existing cruise customers under the current operating configuration.
3. The need for engineering and development of a permanent west-end mooring solution that protects existing cruise operations while evaluating opportunities to safely accommodate larger vessels at the downtown terminal.
4. Whether the Kelsey Dock permanent mooring project should be forwarded as a stand-alone priority recommendation to the City Council or incorporated into the Commission's broader Port and Harbor capital project priorities.
5. The relative priority of Kelsey Dock compared with the VCT water/fire system, Small Boat Harbor boat ramps, Harbormaster office, and other identified deferred-maintenance and capital projects.
6. How the Commission's recommendations should support the City Council's direction to develop a five-year capital project list focused on deferred maintenance and priority projects.
SUMMARY STATEMENT:
Discussion
Commissioners Colleen Stephens and Alan Steed requested that the Commission discuss the loss of west-end mooring capability at Kelsey Dock and consider recommending that the City Council prioritize the project.
The west mooring dolphin failed in 2024 and was subsequently removed. The City installed a temporary upland bollard on State Ferry property under a temporary land-use permit. However, the distance and configuration may prevent some vessels from using the bollard through their normal mooring-line arrangement.
Commissioner Stephens raised concerns regarding safe vessel operations, vessel-master confidence, and the potential loss of future cruise calls. She requested that the City coordinate with pilots, stevedores, staff, and Commission representatives to develop an immediate operational plan, preliminary budget, engineering approach, and long-term solution.
To date, all cruise ships that regularly used Kelsey Dock prior to the west mooring dolphin failure have continued to successfully call on and moor at Kelsey Dock while staff and stakeholders work through the permanent solution. No existing cruise customer has discontinued use of the terminal because of the current mooring configuration.
For the short-term solution, staff have been working with Samson Rope on a proposed facility-side mooring system consisting of:
• Four approximately 115-foot synthetic mooring lines, with three deployed and one maintained as a spare.
• Messenger lines for retrieving and controlling the facility lines.
• Properly sized and rated soft shackles connecting the vessel's mooring-line eyes to the facility lines.
• Procedures for tie-up, vessel departure, inspection, storage, and safe handling.
The majority of the temporary mooring system is already in place and funded. The remaining mooring lines and associated operational equipment are funded and primarily require coordination with the pilots, stevedores, vessel operators, cruise lines, and other stakeholders who will perform or oversee the mooring operations.
Ryan Sontag advised that North Star's crew should be able to work with the proposed procedure. Staff will continue coordinating the final operational details, inspection requirements, safe-work procedures, and stakeholder acceptance during the off-season in preparation for potential use during the 2027 cruise season.
The attached photographs provide additional context and show the failed west-end mooring structure, the temporary upland bollard now installed, and the proposed temporary mooring-line workaround.
The temporary system does not replace the need for a permanent west-end mooring solution. Long-term planning should first ensure that Kelsey Dock can continue to safely and reliably serve the cruise vessels that currently use the facility. At the same time, the City should work with the Alaska Marine Highway System, marine pilots, cruise operators, stakeholders, and qualified engineers to evaluate a permanent configuration that preserves ferry operations while expanding the dock's ability to safely accommodate larger passenger vessels.
A permanent solution should therefore be viewed as both an infrastructure need and an economic-development opportunity. Properly planned improvements could restore long-term mooring resiliency for existing customers while improving Valdez's ability to attract larger cruise vessels to the downtown waterfront.
Accommodating additional vessels at Kelsey Dock may also provide a safety benefit by reducing the number of larger cruise vessels operating under dynamic positioning offshore near the entrances to the Small Boat Harbor and Valdez Marine Terminal waterfront areas.
Commission Priority Discussion
Staff recommends that the Commission also consider how the Kelsey Dock permanent mooring project should be prioritized in relation to other major Port and Harbor capital needs.
The Commission may wish to discuss whether the Kelsey Dock project should be advanced as a stand-alone recommendation to the City Council, or whether it should be incorporated into the Commission's broader capital project priority recommendations with Kelsey Dock placed near the top of the list.
This discussion occurs within a broader City effort to address deferred maintenance and capital needs. The City Council has identified deferred maintenance and projects as its number one goal and has directed City Administration to develop a five-year capital project list. Council has also provided direction allowing departmental annual budgets to increase, where appropriate, to address smaller deferred-maintenance needs that do not require separate major capital projects.
Several significant Port and Harbor projects are competing for available funding and project-management capacity:
• Valdez Container Terminal Water and Fire System Improvements. This project presents a significant life-safety and operational-continuity concern. Staff has had to coordinate closely with the United States Coast Guard and Valdez Fire Department to avoid potential restrictions or closure of the terminal to hazardous materials and dangerous cargo. Dangerous cargo requirements affect routine freight movements, including vehicles transported as Class 9 dangerous goods.
• Kelsey Dock Permanent Mooring Improvements. Restoration of reliable west-end mooring capability is important for existing cruise, ferry, and other large-vessel operations. A properly engineered long-term solution may also provide an opportunity to accommodate larger cruise vessels, increase the competitiveness of the downtown waterfront, and reduce conflicts associated with larger cruise vessels operating offshore near Harbor entrances.
• Small Boat Harbor Boat Ramp Improvements. The boat ramps remain an identified Commission and public priority and support both commercial and recreational waterfront activity.
• Harbormaster Office Replacement/Improvements. The Harbormaster office has also been identified as a Commission and public priority because of its condition and its central role in Harbor operations and public service.
This discussion would allow the Commission to consider life safety, regulatory risk, operational continuity, economic impact, public demand, project readiness, available funding, and long-term infrastructure value when determining its recommendation to the City Council.
Fiscal Impact
The majority of the temporary Kelsey Dock mooring system is already funded. Remaining costs associated with the lines and operational equipment have funding identified and are not expected to require a major new capital appropriation. Staff's remaining work is primarily operational coordination and implementation.
Engineering and construction costs for a permanent west-end mooring solution have not yet been developed and will require additional engineering, cost estimating, and identification of available City, State, federal, or grant funding.
The combined Port and Harbor reserves are currently approximately $10 million, subject to final financial reconciliation and existing commitments. Traditionally, the City has utilized available Port and Harbor reserve funds for Port and Harbor capital projects and, as appropriate, provided additional support through the General Fund.
Port and Harbor projects also compete Citywide for available funding and project-management capacity. The Commission's prioritization is therefore important in helping City Administration and the City Council determine which projects should advance within the City's developing five-year capital program.
The City previously applied for federal Port Infrastructure Development Program funding during the 2025-2026 grant cycle. The application was unsuccessful, with notice received in spring 2026. Staff will continue to evaluate federal, State, and other grant opportunities as they become available.
Available reserves are significant but are not sufficient to address every identified Port and Harbor capital need at once. Prioritization should therefore consider both the urgency of individual projects and the City's ability to realistically fund, design, and manage them.
Staff Direction
Based on the Commission's direction, staff will prepare a formal recommendation and proposed motion for consideration at the next Commission meeting. If adopted, the recommendation will be forwarded to the City Council and incorporated, as appropriate, into the City's developing five-year capital project planning process.