Unalaska, AK – The City Council narrowly voted down an increase to the Port of Dutch Harbor tariff and fee schedules at their Tuesday night meeting. The two proposed ordinances would increase the port tariffs and the port facility fee schedules by 4.8 percent per year for the next three years. City staff said the increase was necessary to offset some of the $130,000 net operating losses and the $1.5 million revenue loss from last year. The change was suggested in a port study done by Northern Economics. Both ordinances failed 3 to 2. No members of the public spoke in favor or against.

Councilmember Skip Southworth said he voted against the ordinances because it would be too hard on people and businesses during the economic recession.

"When there's prosperity, then we can do it," he said. "But until then, we need to help our fishermen as much as possible. We don't' want them to go under."

He said the best way to increase revenues for the port is to increase business. He and councilmember Dennis Robinson said the one solution lies in attracting cargo business away from trampers and into containers on the dock.

"You know, Dennis and I both talked about trampers. They come in here, they drop there hook, they load up 4,000 tons and off they go. Well if that 4,000 tons went into containers, that's 200 containers at $100 a container that the city would have made. That right there is $20,000 bucks."

Southworth also said the city needs to seriously consider the proposal by Horizon Lines to take over operations of the city docks and attract business that way. Neither Southworth nor Robinson provided specific plans for attracting tramper business to the city facilities. Southworth said he would bring forth the Horizon Lines proposal again at the next meeting, on July 28th. The July 7th meeting was cancelled because of council travel.

Councilmember Dick Peck voted against the increase because he said the city already has enough money $13 million in the ports enterprise fund. City Manager Chris Hladick pointed out that the money is already allocated for certain projects and by not adjusting the tariffs, the port enterprise fund may not have enough in it to complete all of the facility maintenance projects that are planned for the next few years.

Mayor pro-tem Katherine McGlashin agreed with Hladick's concerns and said she wondered what project would have to be cut. She said she wanted specific revenue building ideas from the council members.

"You know the three council members who voted against it will have to figure out a better avenue to go to. And last night I asked, 'Well what are your ideas?' and Mr. Robinson said, 'Trampers.' That was his idea. And I wanted more details, but none were given," she said.

Neither Mayor Shirley Marquardt nor councilmember Roger Rowland were present at this week's meeting.