Unalaska City Manager Bil Homka said he will keep the island’s ports director on administrative leave, after presenting her with a notice of termination on July 9. The notice was the topic of a special City Council meeting Friday afternoon.
The meeting drew a crowd to City Hall where more than 30 locals filled the chambers and about a dozen joined in via Zoom to hear a public discussion about Homka’s notice of termination of Peggy McLaughlin, Unalaska’s longtime director of ports and harbors.
Homka told council members Friday that despite her 13 years as director, he had lost confidence in her ability to fulfill the role.
“Her performance demonstrated a pattern of deficiencies that negatively impacted the city's operations, credibility and ability to deliver essential services,” Homka said.
He said she had neglected port facility maintenance, failed to provide effective corporate communication and public relations, and showed a counterproductive attitude and a lack of leadership.
McLaughlin could have accepted Homka’s request for resignation. Instead, she declined the opportunity and chose to have a public discussion about the matter.
“Accepting a resignation under these circumstances would only fuel speculation and leave unanswered questions about the status of some of the city's most valuable assets,” McLaughlin said at the meeting.
She also retained legal counsel through the Northern Justice Project — an Anchorage civil rights firm that represents Alaskans in lawsuits against governments and corporations — and presented council with a 17-page letter arguing her case, saying most of Homka’s claims are false or misleading.
Attorney Goriune Dudukgian spoke on McLaughlin’s behalf at Friday’s meeting.
“I've been practicing law for a very long time, and I would say that this is probably the most egregious and pretextual termination I've ever seen,” Dudukgian told the council.
He urged council members to slow down, not take action at the meeting and consider the content of their letter.
“Which not only responds to the allegations that Mr. Homka has brought forward, but also sets forth multiple incidents of workplace misconduct that was perpetrated by Mr. Homka — not only versus our client, Miss McLaughlin — but other employees of the city,” he said.
In the letter, McLaughlin’s attorneys claim that she had “been subjected to a pattern of racially biased, sexually charged, or belittling commentary about other employees, council members, and community members.”
The letter alleges several examples of Homka’s misconduct, including a “grossly inappropriate comment” about McLaughlin’s appearance in a pink cowl neck sweater.
Her counsel threatened a forthcoming lawsuit against the city if she is fired.
Not many details of the letter were discussed at the 30-minute meeting. The council had the choice to either move further with the notice of termination or set an executive session to discuss the notice. The council voted unanimously for the latter.
While it is ultimately the city manager’s decision whether or not to fire McLaughlin, the council can provide feedback and guidance.
Mayor Vince Tutiakoff Sr. said they will set a date for the meeting as soon as possible, following discussion with the city council.
Neither party responded to an immediate request for comment.
