The borough assembly has set a public hearing for June 25 on an ordinance that would require boat owners to show proof of marine insurance or pay a monthly surcharge on their moorage fees.
If approved by the assembly, the insurance requirements likely would not be applied until next year, Borough Manager Mason Villarma said in an interview June 12.
The port commission has recommended the assembly require marine insurance to protect the borough from damages caused by boat fires and to ensure payment of any cleanup or salvage expenses.
The assembly at its June 11 meeting amended the proposed ordinance to reduce the minimum liability insurance coverage to $100,000 from the $300,000 minimum proposed by staff.
The assembly also amended the ordinance to require coverage for all vessels. The original proposed ordinance only required coverage for vessels more than 29 feet in length.
The ordinance does not specify the monthly fee for boat owners who choose not to buy insurance; it leaves the amount up to the assembly to decide at a later date after a public hearing.
Funds collected by the per-vessel-foot surcharge would be set aside for dealing with salvage costs and derelict vessels.
After collecting the surcharge for a couple of years, the borough could have enough money in the account that the fee could be suspended, Villarma said.
The assembly vote to reduce the insurance requirement from $300,000 to $100,000 and advance the ordinance to a public hearing for June 25 came after almost an hour of debate at the June 11 meeting.
Mayor Patty Gilbert recognized it’s a tough time financially for many people in Wrangell, and expressed the desire not to add costs unless absolutely necessary.
Assembly Member David Powell said he was worried about pricing people out of mooring in the harbors, especially considering Wrangell’s declining population.
Assembly Member Bob Dalrymple, however, said the Port and Harbors Department has been struggling with the cost of derelict vessels, and the insurance requirement could help reduce that risk.
Harbormaster Steve Miller estimated the borough has spent between $50,000 and $100,000 over the past 10 years on vessel salvage and derelict vessel removal. Last year, a sinking cost around $80,000 to deal with, he said, though the U.S. Coast Guard covered most of the expense of that cleanup.
In addition to the insurance-or-fee provision, the ordinance also would require an annual maneuverability assessment — watched by harbors staff — to ensure that all vessels can be moved out past the breakwater in the event of a fire.
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