Council moves forward on financial issues


Wednesday, March 23 2011
Unalaska, AK – Last night city council adopted a resolution that would make adjustments to the accounting classification of the general fund, and it advanced an ordinance that would make some changes to the current budget.
But the most contentious item discussed last night wasn't on the agenda. Before the council moved into the work session, council member Dennis Robinson brought up a recent EPA penalty levied against UniSea. The seafood company was fined nearly $2 million for an ammonia leak that was not reported in a timely fashion.
"That kind of stuff is not acceptable, and we need to be sure to point that out," said Robinson.
An investigation by the Environmental Protection Agency and the Alaska Department of Environmental Conservation determined that UniSea had discharged ammonia, propylene glycol, crab waste, and other pollutants into Iliuliuk Harbor without a permit from 2005 to 2008 - a violation of the Clean Water Act. So far, the federal government has not found that the discharge caused any environmental damage or endangered the health of area residents. Since the discharge, UniSea has also spent $1.6 million upgrading its refrigeration system to prevent future leaks. Mayor Shirley Marquardt stressed that UniSea has worked to rectify the problem and has maintained a solid safety and environmental record throughout its operational history in Unalaska.
"This is something that I do not believe at all was done maliciously or because they didn't care about the environment," said Marquardt. "I think it was truly an accident."
Westward engineer Chris Spengler also spoke on UniSea's behalf.
"What happened could have happened to anyone with an ammonia refrigeration system," he said, adding that no one was hurt.
Following the community input portion of the meeting, council then heard three presentations. City Manager Chris Hladick gave an update on legislative action happening in Washington and Juneau. Council also listened to a presentation on the state of the wellness program, which creates fitness incentives for city employees by providing free access to the PCR for regular users. Council member Dick Peck, Zac Schasteen, and Dave Gregory all complimented the program. Peck also asked for information on how the program affected health insurances premiums for city employees. Lastly, council heard a presentation on Governmental Accounting Standards Board Statement #54 by finance director Tonya Miller.
Both items on the consent agenda were approved. The City of Unalaska was given the go-ahead to sell surplus personal property, including office supplies, electronics, and gym equipment. The surplus sale is scheduled for April 9. The appointment of Chris Spengler to the city's planning commission was also confirmed.
Council also addressed four items of new business. First, council unanimously approved a resolution that amended Comprehensive Plan 2020 to include language concerning junk vehicles. The language concerns a $100 vehicle tax that will be levied to help cover the cost of removing junk vehicles from the island. Then, council voted 5-0 in favor of a resolution that would classify fund balances in both the general fund and the 1% sales taxes special revenue fund, as discussed in Miller's earlier presentation. An ordinance that would create a budget amendment for housekeeping on a number of capital projects - including the upgrade of sewer lift station panels - moved forward to second reading and public hearing. The ordinance does not request new funding, and council voted for it 5-0.
City council wrapped up in executive session for an update on recent actions by the Environmental Protection Agency from city attorney Brooks Chandler.
Council member Roger Rowland's absence was excused.