GULF SHORES, Ala. – A settlement may have been reached with BP, but expect to see workers contracted by BP on the beaches into next year.

The $6.5 million settlement was announced by Mayor Robert Craft at Monday’s council meeting. It covers and completes all claims by the city against oil giant for all lost tax revenue related to the 2010 spill.

“We’re glad to have that behind us and ready to move forward,” Craft said.

Just as Craft was beginning to announce the settlement, City Administrator Steve Garman’s phone began to ring.

“If that’s BP,” the mayor deadpanned, “I’m already done.”

The money is in addition to the $4.8 million for lost revenue received as compensation for lost revenues in 2010.

“The settlement does not include any beach cleanup,” Craft said. “They’ll still be responsible for that. But it does include settlement for any of our past tax losses related to the oil spill.

“BP is continuing and will continue to pick up tar balls along the beach throughout the rest of this year and into 2013 as long as needed. If a hurricane comes in and washes that stuff inshore, it’s still their responsibility to clean up.”

If there are new incidents from another oil spill or the well that caused this spill begins hemorrhaging oil again, BP will be liable again.

“Any new spill is a new event which includes any additional leakage from the existing well which the settlement does not cover,” Craft said. “One of our biggest concerns in this whole process has been the tar mats and how they will relate to the beaches in the event of a storm. We know they are out there and we know we are headed into the storm season.”

If there is a new incident and the beach has to be closed, then BP will be responsible for the city’s lost revenue from lodging and sales taxes.

Craft said most likely the $6.5 million will be set aside as a reserve to use in the future.

“We are looking at, with the finance committee’s help, the possibility of some insurance program for business interruption insurance to cover us through that time or a self-insurance program to hold this money aside and make sure that we are covered in that event,” he said.

A settlement for the 2011 fiscal year was not necessary as Gulf Shores and Orange Beach each experience record-setting tourist seasons. Craft said early 2012 numbers are robust as well.

“All indications right now are we are going to have a great follow up to what was a record year in 2011,” he said. “And 2012 looks good. All of our spring reservations are really good. Our summer reservations are good and the rate is better than it’s been, ever. At least so far.

“Obviously income to the community is going to be enhanced if we don’t have to discount rates and we can continue to get people to come here. We feel like the future’s bright.”

Business and individual claims by private citizens will not be affected by this settlement.

“It’s just related to tax losses,” Craft said.