Unalaska, AK – At last week's city council meeting, a question was raised about a potential conflict of interest between city council members and a proposal from Horizon Lines to take over operations of the city docks. Two council members work with the International Longshoreman and Warehouse Union, which provides labor for Horizon Lines. The city attorney, Brooks Chandler, wrote in a letter that if the proposal comes before the council again, those council members need to declare how they might be financially impacted by a new contract with Horizon. City manager Chris Hladick says once this is disclosed, the city attorney will determine if the council members can participate in a vote on the matter or even in the discussion.

For example, "specifically to this Horizon agreement, if you ended up getting more work - i.e. more pay - then it would be a conflict of interests," said Hladick.

Council members with potential conflicts would have to disclose their relationships with Horizon Lines and the ILWU as well as information about the numbers of hours they work and how that could be affected. The attorney developed a financial disclosure form to help city officers declare their interests.

According to city ordinance, no city officer who has direct or even indirect financial interest in any contract between the city and another entity may participate in the making of the contract. They can't participate if an immediate family member has an interest either. Hladick said the new financial disclosure forms will help determine if a conflict exists.

"I think we added indirect benefits a few years ago but we never really provided the clarification of how you determine what an indirect benefit is, so I think this will help."

But Hladick said the importance of conflict of interest declaration goes beyond simply following the laws - it's also a matter of preserving the public trust.

"It may not be a legal issue but it may be one perception,' he said. "So, typically, what should happen is right when an issue is laid on the table at a council meeting, a member would say, I'd just like to disclose that I am an employee of the person that would get this contract,; etc."

That is not what happened at the last council meeting. Until potential conflicts are declared to the city and reviewed by the attorney, it is unclear if members of the ILWU who serve on the city council will be able to vote on the upcoming review and renewal of Horizon Lines' preferential use agreement with the city. That contract expires next April.