Tourism

A national animal rights organization is recognizing Juneau’s Gastineau Guiding Co. for rescuing a drowning deer last week. PETA, the People for Ethical Treatment of Animals, is sending the tour company a framed Compassionate Business Award.

Marissa Price works with PETA’s college outreach team in California, and she says the organization’s corporate affairs department hands out about 30 of these awards each year.

Price says she’s not sure how the organization heard of the rescue, but PETA generally keeps its finger on the pulse of animal-focused issues.

“Luckily, there are constantly things like this happening that we can award,” Price says, “and we just look at if a company has really gone out of their way to show compassion toward animals.”

The tour company says they found out about the award Wednesday morning, and were surprised and happy about the amount of attention the rescue’s received.

PETA is sending them a framed certificate and vegan chocolate bars.

Dozens turned out to hear the message of Gov. Bill Walker who visited Homer on Tuesday to talk with residents about the state’s looming budget crisis.

As he described the enormity of the $4 billion state deficit, Walker didn’t mince words. He began by quoting David Teal, Alaska’s Legislative Fiscal Analyst.

“He said, ‘Alaska is in the midst of the greatest fiscal crisis in state history’. And he was right.” Walker said.

Walker emphasized that the deficit is an issue for every Alaskan.

“I tend not to broadbrush the legislature,” he said. “Really it comes down to individual legislators. There were those that came to the table with suggestions and ideas and those that said as though it was just my problem. I’m not sure the deficit became just my problem.”

Until the state balances its checkbook, so to speak, state leaders can’t address projects that would build a more sustainable economy, the governor said.

“It’s a matter of looking at Alaska differently than we’ve had to for the last 30 years,” Walker said. “We’ve been riding the coattails of resource development and that’s not working anymore.”

In order to create new industries in Alaska, people have to start thinking differently, he said. For the governor, reducing the cost of energy is critical.

“I just think there’s so much more that we could do on renewable energy,” Walker said. “We should be on the cutting edge of renewable resources in Alaska because we have the most options and the biggest need. If we reduce the cost of energy, the economy looks very very different.”

Enjoyed talking with Rotary Club of Homer Downtown & Homer-Kachemak Bay Rotary about putting Alaska first. pic.twitter.com/NBCup23XNr

— Governor Bill Walker (@AkGovBillWalker) August 3, 2016

But as he explained to Rotary Club members later in the day at Land’s End Resort, he understands the discipline required to balance the state budget may cost him.

“It takes somebody who’s not looking at a political career to make these decisions and make the decisions for the vision and the future of Alaska,” he said. “Not necessarily for my political career, which I don’t think I’m gonna have one.”

Those who turned out to hear him speak seem to support his plans to get the state back on track.

Maynard Gross says the fixes the governor is proposing makes sense.

“I think an income tax is clearly the best way to go because that least affects the folks at the lower end of the economic spectrum,” Gross said.

Will Files praised the governor’s unifying message.

“We have come to think of ourselves as Democrats or Republicans and we take that to the finest point possible. If we would listen to the governor and suggest we all become Alaskans, working together for a common goal, I’m willing to be on that team,” said Files.

Daisy Lee Bitters was impressed with the governor’s outreach efforts.

“I’m so pleased to see that the governor when he comes to a community he covers so many groups. Like with being at the senior center and then the city council and then the Rotary Club,” said Bitters.

The governor is traveling around the state to talk with Alaskans about the budget crisis. He plans to continue visiting with residents and local leaders in the coming months.

A Skagway Borough Assembly member and businessman convicted of failing to file his income taxes is being ordered to spend just over a year in prison.

Dan Henry, operator of the Skagway Fish Co., will spend a year on supervised release after he gets out. He must repay $600,064 to the federal government for unpaid income taxes. Henry, 61, was sentenced in U.S. District Court in Juneau on Monday on four misdemeanor charges of willful failure to file income tax returns. The charges are only for Henry’s conduct between 2009 and 2012, although prosecutors say he admitted to relevant conduct dating back to 2004.

In a written statement to the court, Henry blamed heavy drinking for gambling away all of the money he set aside for the 2005 season’s start of the Skagway Fish Co. and subsequent payment of taxes. He wrote that he put off filing his income tax returns as he repeatedly returned to Las Vegas with the hope of winning his money back. But the losses simply compounded over the years. He said alcoholism led to his dismissal from early jobs at the Chicago Board of Trade and a DUI conviction.

Henry also wrote that he worked hard, long hours to build up the restaurant over the years. But there is no one else to replace him and fill his multiple roles at the business. He ends his letter by apologizing for his conduct and acknowledging that he must make restitution as soon as possible.

Last February, Henry pleaded guilty as part of an agreement reached between prosecutors and his attorney over nearly two years of negotiations.

Defense attorney Robert Bundy had asked that Henry be sentenced to eight months in prison while prosecutors wanted him to spend two years behind bars and pay a $50,000 fine. Bundy also noted Henry’s 15 years of service with the Skagway City Council and Skagway Borough Assembly that included the position of Finance Committee chairman. Other community members also submitted statements and a video of support noting Henry’s community involvement on education, senior and veterans issues.

Assistant U.S. Attorney Jack Schmidt noted in a sentencing memorandum that Henry “was not overly sophisticated in avoiding his tax responsibilities,” but he did file fraudulent financial disclosure reports with the Alaska Public Offices Commission that claimed no self-employment income over $1,000 for 2010 to 2012. His case with the commission is still open. Schmidt also noted that Henry received checks and deposits that were structured in order to hide his income.

U.S. District Court Judge Timothy Burgess on Monday ordered Henry to a year in prison for each of three charges to be served concurrently. For the fourth charge, Henry will spend a day in prison to be served consecutively to the other terms.

Henry must report to a federal prison facility by Nov. 1.  His current term on the Skagway Borough Assembly ends in October 2017.

Rookie state legislator Rep. Dan Ortiz, who represents District 36, visited Wrangell last weekend for Bearfest to meet with constituents.

Ortiz is up for re-election in November and said Wrangell residents have expressed concern about the $3.5 billion state budget deficit, the ferry system and a restructuring of the permanent fund.

Ortiz said he’s heard plenty of concern from Wrangell residents over the state’s fiscal future.

”And frankly, they want to know what it is that the legislature is going to do about that situation,” Ortiz said.

The legislature didn’t take much action after two special sessions, he said, mainly on Gov. Bill Walker’s fiscal plan, including a restructuring of the permanent fund.

“Some are quite fearful the permanent fund dividend will disappear,” he said.

Walker vetoed half of the money for this year’s dividend along with several other vetoes to education and road projects. Walker also delayed payments for oil and gas tax credits. Ortiz said the governor’s decision wasn’t easy, but he supports a restructuring of the permanent fund.

“So what I’m saying is and what the governor’s office and financial experts are saying is eventually that dividend will not be there for the people of Alaska,” Ortiz said. “When I say eventually, I’m not saying distant, I’m talking three to four years.”

An income tax also is an option that needs to be thoroughly looked at, Ortiz said.

“In fairness to the governor, he’s definitely not a tax-and-spend guy,” he said. “But, he’s looking at the reality that said we’ve cut the budget and yet, even as much as we’ve cut it, we still have about a $3 billion to $3.5 billion deficit. We can’t just continue to have that, and we’ve got to come up with new revenue.”

Ortiz doesn’t support all of Walker’s fiscal plan, particularly a 3 percent state sales tax. He said that increase might deter “buying local” in communities such as Wrangell with a 7 percent sales tax.

Southeast Alaska has seen dramatic cuts to the ferry system over the last few years. Oritz sits on the transportation committee and said he understands businesses’ concerns that rely on the system.

Wrangell could see 22 fewer sailings October through April compared with last year. Leslie Cummings, who owns Grand View Bed and Breakfast in Wrangell, told KSTK in an earlier interview that she receives roughly half of her business from marine highway travelers.

Ortiz said an increase in sailings isn’t likely, but hopes to make the system’s budget stable.

“Really what I would be hopeful for is if we can stop the bleeding, if you will, and basically keep the ferry system on its current operating level, at least for the short term,” he said. “In doing so, creating certainty for businesses, certainty for travelers on the ferry system which I think is important for the overall health of the ferry system.”

Although the state’s fiscal future is uncertain, Ortiz said there were some positives to come out of this year’s session. He said Senate Bill 32, which allows the state to open more of its timber lands to sawmills, was one of the key legislative wins for Southeast. The other is a tax on cruise ship passengers that helps fund refurbishing port facilities. He said that was on the chopping block but was restored.

Ortiz faces two opponents in November, Republican Bob Sivertsen and Constitution party member Ken Shaw.

Ortiz is an independent but caucuses with the Democrats.

Multiple boats helped rescue 18 people from the Dolphin Jet Boat Tours whale-watching vessel, Big Red, which struck a rock and sank Sunday.

The Coast Guard received a distress call that the tour boat was taking on water at 12:17 p.m. Sunday.

Douglas Ward, the owner of Dolphin tours, said he was shocked by the accident and was grateful everyone made it off the boat safely.

The Big Red’s captain was fired, Ward said.

Mike Clasby, a naturalist with Dolphin tours, said he and the Big Red’s captain were bringing 16 tourists back to Juneau after a tour.

They were between Shelter Island and Aaron Island, passing the southern tip of Aaron Island in Favorite Channel. The boat struck an uncharted rock, according to Coast Guard spokeswoman Lauren Steenson, petty officer 3rd class.

He said the sinking couldn’t have taken more than five to six minutes.

“I was facing the stern of the boat and looking at the passengers and all of the sudden there was this horrific bang,” Clasby said. “I thought we hit a whale. Then I realized that it was a little more than that because I ended up on the floor of the boat.”

Clasby first checked on the passengers and the captain, he said. Then went to see whether the engine compartment was damaged.

“I said, ‘OK, I’ll be right back,’ and I went back and opened the stern (door), and popped open the starboard hatch, and there was water coming in the engine compartment,” he said.

With water coming on too fast, Clasby thought about deploying the life raft but said he instead decided it was more important to get everyone in life vests first.

“The captain and I went towards the back, and then (water) was really coming onboard,” Clasby said. “We made a plan that he was going to try and get the life raft, which was now underwater actually, released.”

That’s when he said they saw a boat.

“I yelled, and yelled, and screamed, and he was waving, and I was waving and all of the sudden this boat called Sea Ya waved back and turned towards us,” Clasby said.

The Sea Ya was the first vessel to reach the Big Red. The Juneau harbormaster’s office said the boat measured about 30 feet long. Clasby said it wasn’t big enough, but they still managed to fit almost everyone aboard.

“Then all the sudden the boat (Big Red) sank,” Clasby said. “It was taking that much water on. There was four of us that didn’t make it onto the Sea Ya, we were hanging on the edge. And the captain, who was the last one off of our boat, had a life jacket and he drifted away, unfortunately, which turned out to be OK.”

Clasby and remaining passengers made it aboard the Sea Ya, he said. The captain later was retrieved from the water.

The St. Herman, Allen Marine Tour’s boat, collected the Big Red’s passengers and returned them to shore.

Capital City Fire/Rescue reported all of the tour boat’s passengers and crew refused medical treatment, including one person who suffered a knee injury.

Editor’s note: We’ve published an expanded and recast version of this story here.

Update

Capital City Fire and Rescue reported all of the tour boat’s passengers and crew refused medical treatment, including one person whose knee was injured.

Original story | 7:06 p.m.

Two boats rescued the passengers of a whale watching vessel that sank Sunday.

U.S. Coast Guard PO3 Lauren Steenson said the tour boat Big Red reported it was taking on water early in the afternoon.

“Coast Guard Watchstanders issued an urgent marine information broadcast and there were a couple (of) good Samaritans that responded,” Steenson said.

The Sea Ya, the first vessel to reach the Big Red, took most of the 16 passengers and two crew members aboard. Later, an Allen Marine Tours vessel, the St. Herman, came on scene.

“But once the St. Herman got there, all 18 people were recovered from the water and the other boat and transported to Allen Marine Dock,” Steenson said.

The passengers and crew reached shore about two hours after they called for help. Steenson wasn’t certain what condition they were in. She said one person had a knee injury.

Steenson said the Coast Guard rarely sees vessels sink in the Juneau area, but they do see an increase in calls for vessels taking on water during the summer months.

“Especially during those months we definitely like to stress the importance of having all your safety gear up to date and having life vests for each person on board and functioning communication equipment,” Steenson said.

Lt. Jennifer Ferreira, Coast Guard Sector Juneau command duty officer said in a press release, all of the Big Red’s passengers were given life vests.

The Big Red was operated by Dolphin Jet Boat Tours. The company didn’t immediately respond to attempted requests for comment.

The cause of the boat sinking is under investigation.

This is a developing story.

Correction: An earlier version of this story had misspelled the good Samaritan vessel’s name. It’s the Sea Ya, not the See You. Also, the Coast Guard spokesperson’s assertion that four people waited in the water has been deleted because an eyewitness had a contradictory account.