Unalaska pulls $10.6 million from general fund after harbor bids beat 2023 estimates

Unalaska will cover a $10.6 million funding gap on its Robert Storrs Small Boat Harbor rebuild out of the general fund, without taking on debt, after construction bids came in well above the engineers' 2023 estimate. The city council passed Ordinance 2026-17 on Sept. 8, appropriating and transferring $10,616,349 from the General Fund to the Ports and Harbors Capital Project Fund for the A and B float replacement. The council also passed Resolution 2026-55 that day, authorizing a $21,941,662 contract with Western Marine Construction Inc.

PND Engineers put the overall project budget at roughly $14 million in August and December 2023, before final design, with updates expected. The low bid, opened Aug. 4, came in at $21,941,662; the total recommended construction budget, including a 10% contingency of $2,194,166, is $25,251,261.

Interim finance director Jim Sharpe wrote in the ordinance memo that current project funding was $14,634,912.60 and that an additional $10,616,348.40 was needed to fully fund the construction budget. Staff said the city can pay from cash on hand but flagged a limit: "it is questionable as to whether the General Fund could fully fund another project of this size without obtaining some form of debt."

Port Director Scott Brown had advised against redesigning to cost less, telling the council Aug. 25 that a redesign would add engineering cost and delay and return to bidding with no assurance of fitting the budget. Council introduced it that night 5 to 0 without discussion. Minutes for the Sept. 8 adoption are not posted.

A second harbor amendment passed that night. Ordinance 2026-18 increased construction services for the Entrance Channel Dredging Capital Project by $1,931,103, drawing $1,594,898 from the General Fund and $336,205 from the 1% Sales Tax Fund.

Western Marine Construction must reach substantial completion by July 1, 2028, and final completion by Aug. 1, 2028. It replaces 71 slips across 1,232 linear feet of floats for vessels up to 60 feet, relied on by the commercial fleet and maritime businesses.

The city applied Aug. 19 for $5 million from the state Harbor Facility Grant Program and is pursuing up to $1 million from the Denali Commission's Rural Transportation Match and Gap Funding Assistance Program. Neither has been awarded, and neither is counted in available project funding.