The city of Anchorage has reached a settlement with one of the parties in an ongoing lawsuit over the botched Port of Anchorage expansion, a $5.5 million payout that officials hope is a first step in recovering many millions more. Documents submitted to the Anchorage Assembly earlier this month describe the settlement between the city and MKB Constructors, which worked as a subcontractor on the expansion project with Quality Asphalt Paving Inc. The Washington-based company was mainly responsible for driving steel sheet piles into the floor of Cook Inlet to create the base of what was to be an expanded, upgraded port.