Unalaska, AK – The city council voted on Tuesday to bring the port tariff increase back for a public hearing and a second reading - this puts the ordinance one step closer to passing. The ordinance increases port tariffs and wharfage fees by 4.8 percent per year for the next three years. The tariffs and fees have not changed in over 10 years and the increase was recommended in a study by Northern Economics. Currently, the ports department is in the red. At the end of fiscal year 2009, the ports had a net operating loss of $267,338 dollars.

When the tariff increase first came up for a vote over the summer, the council voted it down with three votes against and two votes for it. Council member Roger Rowland was fishing and did not vote. This time, Rowland is in town and ordinance opponent Skip Southworth has been voted off the council and replaced by Zac Schasteen, who supports the increase. During Tuesday night's vote, the council moved it to second reading with a vote of 4 to 2.

Council member Dennis Robinson remains opposed to parts of the ordinance. He said an increase in wharfage fees would cause a trickle down of price increases through Horizon Lines to all of their customers who do not have formalized contracts.

"The trickle down is going to directly affect the citizens here. It's not going to affect the processors. It's not going affect the large folks with negotiated rates. It will affect the citizens," Robinson said.

Robinson argued that Horizon will not be able to increase their rates for some of the larger customers, so they will have to make up that loss in other ways by increasing rates for everyone else. Horizon Lines general manager Bruce McConnell spoke at the meeting against the tariff increase but did not say this specifically.

Mayor Shirley Marquardt said that increase is so slight that most people should not feel it. Other council members agreed and said that the increase needs to begin now, gradually, instead of when the ports have more troubles.

Robinson and council member Dick Peck also said that the increase would not be necessary if the city changes the way it deals with interest income from the enterprise funds. Since 1984 the interest income from each fund is fed into the general fund to support the overall operations of the city.

The council will vote on the tariff increase again at the Nov. 24th meeting.