The Haines Borough Assembly on Tuesday trimmed proposed rate increases for using Lutak Dock.

Business representatives had met with borough manager Mark Earnest to share their concerns about the ordinance, which could have increased wharfage to $7.50 per ton for general cargo, up from $2; and the rate for explosives and other hazardous cargo to $20, from $8.

"We have worked over the last two weeks on this, and I think we’re closer," said real estate agent Glenda Gilbert.

The assembly Tuesday advanced the ordinance to a third public hearing, set for April 12.

The ordinance now has a rate schedule from 2011 to 2015. The rate for general cargo would go from $3.50 to $5.15 per ton in that period, and "explosives/hazardous waste" would increase from $8 to $11.70 per ton.

Member Jerry Lapp said the rates were similar to what was discussed at a borough finance committee meeting the previous week.

"It would be a small increase and then 10 percent (increases), I believe it is, for five years, which is very small, and then there was also talk about putting this into an enterprise fund, so it would be its own fund," Lapp said.

Dockage rates, currently with a sliding scale from 80 cents per foot for vessels 149 feet or fewer to $2.40 per foot for those 700 feet and above, also would have set increases through 2015, starting with a flat fee of $2.50 per foot per 24-hour period. The rate would be $3.65 by the fifth year.

Gravel, which had held steady at 20 cents per ton in an earlier draft, would have a 5-cent increase each year.

"When we do have an enterprise fund, we’ll be able to use these rates to improve the facilities, to upgrade them, to possibly expand them, to try to attract additional commerce into the community, which will generate additional revenue," Earnest said. "I don’t think that the rates that are being proposed are going to make or break anyone."

Ned Rozbicki, president of the Haines Chamber of Commerce, spoke at Tuesday’s meeting and said he still had issues with the ordinance.

"What this really is, is this is an increased tax, and it’s mostly on the shoulders of the year-round residents here," he said.

Don Reid, vice president of operations for Alaska Marine Lines, in an e-mail to Earnest said "eventually these costs get passed on to our customers."

"I can certainly understand the reasons you are looking at this given the high cost of marine facilities and general low freight volume that you have to pay for operating and maintaining this facility," Reid said in the e-mail.

He recommended the general cargo, explosives and hazardous waste, and dockage rates that were listed for 2011 in the amended ordinance.

"The rates that I am suggesting are a little higher than most other communities in Southeast Alaska but don’t get you so far out there that you are two or three times higher than other communities," Reid said.

Earnest on Tuesday said the numbers should be put in context.

"The revenue off the Lutak Dock, the tariff there, is about 1-2 percent of the total freight bill, and if you put it into per pound, we’re talking about an increase of $1.50 for ton, which is less than one-tenth of a cent per pound," he said.

Assembly member Steve Vick said the borough shouldn’t defer maintenance on the dock.

"If we continue on the path we’re going, the longer we wait, the more it’s going to cost," he said. "The upgrades have to happen; unfortunately, a rate increase, I think, has to happen. We’ve got to catch up to the times and make this an economical asset to the community."

Earnest said the changes would increase revenues to around $100,000 in the first year, up from approximately $60,000. He estimated the revenue would be $155,000 in 2015, and said the borough is aiming to attract more commerce across the dock.

"It would be totally counterproductive to have rates that are not competitive for that effort," Earnest said. "We have a great sensitivity to this issue, so we’re trying to find that appropriate level that doesn’t cause harm."