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Agenda Item
13 22-3236 *Approving the adjusted fees set forth in the attached "Cruise Ship Rate Sheet," to become effective on October 1, 2022, based on accumulative CPI adjustments for August 1, 2019, 2021 and 2022; Approving future annual rate adjustments based on the Consumer Price Index for U.S. City Average, all urban consumers as reported by the Bureau of Labor statistics for the 12 months prior to August 1 of each year.
The 2018 Raftelis study found the City's cruise ship disembarkation & dockage fees were significantly lower than other ports in the region. It is good to see ongoing efforts to correct this. However, due to current inflation, it appears the proposed rate adjustment will actually result in a NET LOSS for the City. The executive summary states "the City will cap the increase at CPI or 2.5% whichever is less." CPI was 5.3% last year and is currently 8.1%. In real dollars, the proposed "increase" will mean greater expenses for the City and greater revenues for the cruise industry. Cruise ships can afford to pay their share, without subsidies from the City. Eliminate the arbitrary cap of 2.5%.
Amazing fees not adjusted from 2004 to 2018. City financial mismanagement? Explanation? Does the increase proposed effective October 1, 2022 recoup increases the City failed to assess/collect for the last three years. Why in the world would the City cap increases to lesser of CPI or 2.5%? Do the owner of Pier B and the Cruise Ship companies cap their revenues? Is the amount of increase in City's costs including employee salaries/benefits subject to 2.5% cap? This is crazy and needs to be addressed. And the cap to benefit the owners of Pier B (who refuse to allow public access to TW Park via Admirals Cut) and the cruise ship companies, some most profitable corporations in the world.
The 2018 Raftelis study found the City's cruise ship disembarkation & dockage fees were significantly lower than other ports in the region. It is good to see ongoing efforts to correct this. However, due to current inflation, it appears the proposed rate adjustment will actually result in a NET LOSS for the City. The executive summary states "the City will cap the increase at CPI or 2.5% whichever is less." CPI was 5.3% last year and is currently 8.1%. In real dollars, the proposed "increase" will mean greater expenses for the City and greater revenues for the cruise industry. Cruise ships can afford to pay their share, without subsidies from the City. Eliminate the arbitrary cap of 2.5%.
Amazing fees not adjusted from 2004 to 2018. City financial mismanagement? Explanation? Does the increase proposed effective October 1, 2022 recoup increases the City failed to assess/collect for the last three years. Why in the world would the City cap increases to lesser of CPI or 2.5%? Do the owner of Pier B and the Cruise Ship companies cap their revenues? Is the amount of increase in City's costs including employee salaries/benefits subject to 2.5% cap? This is crazy and needs to be addressed. And the cap to benefit the owners of Pier B (who refuse to allow public access to TW Park via Admirals Cut) and the cruise ship companies, some most profitable corporations in the world.