Assembly passes WMC ordinance, appoints Younce

It was a busy night at City Hall on Tuesday, Aug. 28 as the Borough Assembly met in three sessions to hold a public hearing, certify the Wrangell Medical Center Board of Directors special election results, and to meet in regular session on a number of items.

The public hearing, which began the evening, was to hold a second reading of a proposed ordinance that would clarify oversight of the WMC board and their powers in operating the hospital.

One proposed change would restrict the board to a limit of $25,000 for additions, replacements or repairs to the facility. The change also vests the physical custody and care of the current WMC facility to the assembly, which the board had previously controlled.

The most major change would essentially make the hospital a department of the City and Borough under the charge of the Borough Manager.

“The borough manager shall have governing power over the administrator, except as related to the selection of the administrator … in the same manner as the borough manager has governing power over all other administrative department heads.”

Mayor Jeremy Maxand added clarification to the change after the first reading on Aug. 17.

“Essentially, the hospital is, and always has been a department of the city,” he added. “It just clarifies their status.”

During the hearing, newly minted WMC board member Woody Wilson objected most strenuously to adopting the ordinance in its current form.

Of the 13 proposed sections Wilson referenced in a letter to the assembly, one of the first Wilson dealt with was a requirement concerning the Borough Manager and attorney for the city.

“Throughout the document. I noticed several instances where you are requiring the borough attorney to look at contracts and documents,” Wilson said. “It’s a requirement of the ordinance. That to me seems wasteful. You have a Borough Manager that’s quite capable. My recommendation is that you allow the Borough Manager to use his discretion. If he wants to send something to the attorney, he can do that.”

Wilson also addressed an issue regarding a change in personnel policies,

“Is it the intent of the assembly that employees of the WMC are to become members of the Alaska Personnel Retirement System?,” his letter states. “To be consistent with the borough’s ‘personnel rules and regulations’ this would have to become a reality.”

Wilson also brought up the legality of the requirement that a liaison from the assembly be allowed into WMC board executive sessions.

“It appears, based on the borough’s own ordinance and by the Open Meetings Act of Alaska, inserting an assembly liaison into a WMC executive session is precluded,” the letter states.

Wrangell resident Bob Maxand also weighed in to support the proposed ordinance.

“I think this is a starting point,” Maxand said. “We should pass this. We can tweak it later.”

After the hearing, the assembly moved into special session to certify the results of the Aug. 21 special election for 8 open seats on the WMC board. Borough Clerk Kim Flores then swore in new members Wilson, Judy Allen, Marlene Messmer, Robert Henry, Terri Henson, Bernie Massin, Megan Clark, and Cori Robinson.

After the canvass board met on Aug. 23, Henry and Barbara Conine tied for the seat they ran for with 290 votes each. Under Wrangell Municipal Code section 2.28.160, the winner was determined by a coin toss, which Henry won.

The regular session of the meeting began with a short presentation by Alan Ollivant and Randy Volk, representatives of North American Wood Products of Portland, Ore. The pair is in the region to fill orders and train manufacturers in their processing specifications for wood.

After discussion, the assembly voted 6-0 to pass the proposed ordinance amending Title 3 of the municipal code relating to hospital oversight.

“This is going to give the new board an opportunity to have some free advice and some very clear ways of what their functions and duties are,” member Bill Privett said. “On top of that, it gives them time to sit down and go through the ordinance and make recommendations.”

The assembly also presented former assembly member Mike Symons with a certificate honoring his service to the city. Billie Younce was appointed as a replacement for Symons by a 3-2 vote, with members Don McConachie and Wilma Stokes voting against the appointment. Assembly member David Jack was not present.

In Borough Manager Tim Rooney’s report to the assembly he touched on a number of items currently in the works throughout the city and borough.

The report once again spelled out what Rooney states could be detrimental effects for homeowners in Wrangell if voters approve a proposed sales tax rate reduction to 5.5 percent.

“A third version of an initiative petition has been filed with the Borough Clerk's Office and has been reviewed and found to be in compliance by Mr. Blasco's office for accuracy and conformance,” Rooney stated. “The petition intends to seek Wrangell voter approval of a reduction in sales tax from 7 percent to 5.5 percent at an upcoming election.”

Rooney added that the 7 percent sales tax is estimated to bring in $2,350,000 during fiscal year 2012-13. Reducing the sales tax to 5.5 percent would drop that amount to $1,846,428, a reduction of $503,572.

Currently sales tax is divided with 4 percent going to streets, 28 percent to schools and 68 percent to the borough’s general fund.

“If sales tax is reduced to 5.5 percent, the impact on those funds would be as follows: Streets would receive $20,143 less,” Rooney added. “Currently the City and Borough of Wrangell gives the school a total of $667,799, of which $590,000 is from sales tax. At 5.5 percent, this amount is reduced to $517,000, less the $29,000 for the pool, bringing the amount to $488,000. This would create a shortfall from the amount the City gives the school to $102,000 which would have to be picked up by the general fund.”

Under that scenario, Rooney states that general fund sales tax revenue would go from $1,598,000 to $1,255,571, a reduction of $342,429 – and to balance the general fund, spending would need to be reduced by 8.7 percent.

Rooney also added that the reduction in sales tax would necessitate a higher rate for residents who pay property taxes.

“A reduction in sales tax would inevitably result in increasing the mill rate to the authorized level of 13, if not higher, to cover this shortfall and all of the shortfalls in funding identified above,” Rooney stated.

Wrangell’s mill rate is currently set at 12.75, but a 2010 vote authorized the city to raise the rate to 13, though the borough has declined to do so for the past two years because sales taxes have been sufficient to cover payment on the general obligation bond for the new Evergreen Elementary School playground.

Rooney also informed the assembly that project meetings regarding the WMC renovation project have been stalled and will resume once, “both the new WMC Board is seated and staff has had an opportunity to visit with the USDA to discuss plans to move forward. As presented in the July 20, 2012 Borough Manager's Report, the USDA will be doing nothing regarding the project loan until the new WMC Board is elected and

seated.”

The borough has also applied for two municipal matching grants from the Alaska Department of Environmental Conservation, according to Rooney. One will seek $345,512 to replace equipment that pumps sewage from 80 percent of borough residents to the treatment plant. The second is asking for$99,414 to analyze treatment solutions for improving water filtration and minimize maintenance costs.

Rooney will also be assuming the role of President at the Southeast Conference through Sept. 2013 during the annual conference next month.

In other business, the assembly passed the following:

A resolution authorizing an 8-cent per KWH electrical rate incentive for the new facility construction at Sea Level Seafoods.

Approval of City Tidelines Annual Reassessment for Silver Bay Logging.

Approval of interim management services by Peace Health of Ketchikan for the Wrangell Medical Center.

Cancellation of the Nov. 13 Borough Assembly meeting.