After weeks of discussion, Unalaska’s city council rejected a plan to open up bidding for long-term tenants at the municipal dock.

Dozens of longshoremen and employees from Horizon Lines watched last night as councilors debated whether to ask for proposals from other shipping companies that want to secure space at the Unalaska Marine Center.

The measure needed four votes to pass, since councilor Roger Rowland was excused from the meeting. It failed 3-2, with Alejandro “Bong” Tungul and Yudelka Leclere voting no.

By day, Leclere is a manager at the GCI store in Unalaska. She said hundreds of customers have shared concerns about the domestic freight service that Horizon has provided for more than 20 years -- and where it fits in the city’s plans for growth.

"As a business person, if I’m going to expand and do whatever I want, I’m going to take care of the customer that’s already helping me get there," Leclere said. "I’m going to tie that down and look for new ventures."

The Unalaska Marine Center is currently set for renovation to add extra space. Depending on the scope, the project could cost between $41 million and $46 million.

In a presentation to council, ports director Peggy McLaughlin explained that the city should be able to secure about $30 million in bonds. They would be repaid using revenue from the dock.

Mayor Shirley Marquardt said the bond issuers like to see firm commitments -- including long-term contracts with shipping companies.

Horizon Lines used to have a preferential use agreement to serve Unalaska, complete with discounts over the usual tariff. 

Marion Davis, a vice president for Horizon, told the council that there were discussions about setting up a new agreement in 2013. But he said the city’s offer was unreasonable.

"It not only was tariff, but five percent higher than tariff," Davis said. "Now, who would agree to that? It also had a 25 percent penalty in there if our vessel interfered with another vessel."

The negotiations broke off. But Horizon continued delivering groceries and mail to Unalaska each week under what Davis referred to as "a verbal agreement."

Port staff try to set aside time and space at the Unalaska Marine Center to fit Horizon’s sailing schedule. Davis said a preferential use agreement with another shipper could jeopardize that and push Horizon out of the dock.

But councilor Tom Enlow said that concern -- and others he’s heard from the public -- don’t hold water.

“Things like ulterior motives by members of the council and city staff, conspiracy theories to get rid of unionized labor and bring in some foreign shipper and bring in somebody to manage the dock,” Enlow said. “You have to look at the customers who use that dock and the industry that that dock supports, and ask yourself -- are we really going to allow that to happen?”

Enlow is the president of UniSea. He disclosed that the seafood processing company has a contract with Horizon Lines -- and a vested interest in keeping them at the Unalaska Marine Center.

"But I have to put on my community hat and say that this is a public facility that everybody should have an opportunity to use -- or at least express a desire to use in a proposal," Enlow said.

Now that the council has decided not to request proposals, city staff are going back to the drawing board.

In an interview after the meeting, interim city manager Don Moore said he’ll work with the ports department to determine what the next step should be.