Unalaska, AK – The city council voted Tuesday to fund a slightly scaled-back version of the new small boat harbor.

Since the February 23 council meeting the proposed price of the Carl E. Moses boat harbor had risen $4.6 million, from $39 million to $43.7 million, because of rising costs of materials and land acquisition. That price included the inner harbor, contingency funds and road and uplands construction. It also included funds for additions to the base bid selected by the entire council at previous meetings such as $1.8 million for a drive down dock to help boats load and offload gear and $2.4 million to extend the C-float and make room for larger boats.

In order to pass the amended budget and build the boat harbor with the additions, four of the five present council members had to vote for it. However, council members Dick Peck and Dennis Robinson both objected to the increasing cost of the project. They said that using money from the bank, especially if it is designated as part of the rainy day fund, will cause problems in the future.

"As I said, I think it's fiscally irresponsible to tap into that money and to use it thinking we haven't used it in 10 years, why do we need to keep it?" said Robinson.

He said that though he supports the boat harbor, it won't bring in much money because the design is out of date. "We're depleting our cash reserves for a facility that's based on a population of vessels that's no longer floating on the water here."

Robinson and the rest of the council have been looking at and modifying the design since December.

Robinson and Peck both argued that using money from the bank for this project will eventually require higher property taxes to replenish it. However, according to staff financial reviews, the city would only have to raise the mil rate if they bond to pay for the harbor and have to pay back bond interest.

City Manager Chris Hladick argued that over the 40-year life of the harbor, $4.6 million would not make a large difference and once the inner harbor is built, it will be very hard to modify.

Community member Alyssa McDonald told the council that the benefits of the harbor may not be felt through city revenues, but they will be felt by all of the business in the support sector. She said the city will feel an indirect positive impact.

After a long debate filled with parliamentary technicalities, the council voted to pass the smaller version of the budget that did not include the drive down dock or the extended C-float. Council member Katherine McGlashan said it was the only way to get the project moving.

"I thought it was a good debate, but it was a long debate for $4.6 million because if we go back to the options and if we do those options later we're going to have to look at costs for the mobilization and demobilization of the freight, the steel, the trucks and everything. You also have to look at the steel prices, which are going to go up, too. So you're arguing over $4.6 million, which went round and round and ended up with a compromise just getting the steel, the base coming in. I'm happy with that and when we have a full council, bring in the other options and see how that goes."

Her theory is that if the additions to the base bid are brought forward again when the full council is present, those additions might pass. However, steel prices could rise again between now and April causing another increase in price.

The budget amendment that passed also included an additional $1.76 million to fund the community center expansion. That project will cost the city $3.96 million total.

Additionally, the council voted to accept a grant of $3.7 million to build a new 8-plex housing unit for health professionals, public safety workers, teachers, and other public employees. The city will contribute $1.7 million toward the project that will replace six of the city's dilapidated trailers. Hladick said the new housing should help attract new employees to the community.