Unalaska, AK – Yesterday evening, city council hashed out a number of issues related to the future of the ports and harbors department.

Ports director Alvin Osterback addressed the council for approximately an hour, and he discussed the status of the ports enterprise fund, best management practices for the Carl E. Moses small boat harbor, and the new harbor's plans for operations and oil spill response.

At a budget meeting on April 9, Osterback said that the department was expecting a shortfall of over $1 million. However, after revising the budget, Osterback anticipates that the fund could see a profit of approximately $112,000. He says that he expects APL to continue to do some business with the city and he says that adjustments to the tariff and fee schedules would also bring in additional revenue. He says that the initial forecast for the shortfall came from problems doing the accounting.

"I made a couple of mistakes. I had started working on a couple of different items in the budget and I thought I had entered them in as adjustments, and basically I got off working on another project and I didn't do it," says Osterback. "My apologies for that."

Some members of the council were pleased by this news, but there was also some skepticism about this turnaround from Mayor Shirley Marquardt, who later asked to see the revised numbers.

Osterback also walked the council through the proposed best management practices for the new small boat harbor, which are meant to limit the risk of oil and pollutants entering the water and harming animals like the Steller eiders. While members of council agreed that keeping the harbor in compliance with the Clean Water Act was important, there was some concern about one of the policies prohibiting the release of bilge water into the harbor. Council member Roger Rowland did not believe this to be practical.

The discussion and proposed adoption of best management practices was ultimately tabled for a later council meeting after this subject continued to provoke dissent.

After getting the ports and harbor update, the council also heard a presentation on the powerhouse. City Manager Chris Hladick recommended that the city enter into a contract with Electric Power Constructors for the installation of a third generator at the powerhouse at a cost of $4.4 million dollars.

While council unanimously approved a resolution allowing this contract, council member Dennis Robinson did express some concerns about going with a sole-source contract. Marquardt stressed that sole-sourcing was a rare practice for the city.

After the work session, council approved a few items of legislation. A resolution that confirmed Karie Wilson to the PCR advisory committee passed unanimously. After some discussion, a resolution that would eliminate PILT - or payment in lieu of taxes - in part for the purpose of simplifying accounting also passed on a unanimous vote.

One resolution related to state redistricting was tabled until later meetings.

Council wrapped up by meeting in executive session to discuss issues related to the Department of Justice.

All council members were present.