At its Tuesday night meeting, the Borough Assembly continued to keep up on its various utility priorities.
In his regular update, city manager Jeff Jabusch reported most paving projects around town have been completed, including the barge ramp lot. Surfacing work at Wood Street is still on schedule, with new curbing being set in place. Work on that project is expected to wrap up in mid-October.
For the water treatment plant, Public Works Department staff are working on a plan to clean out the sand in its filtration units. An emergency shortage of water occurred in July after the slow sand filtration failed to process enough water to meet demand. Work would be undertaken during the winter, at a time when demand tends to be at its low point.
“We’re hoping that does a lot of good,” said Jabusch.
The city is also in talks with local seafood processors, which are adopting measures to reduce treated water usage significantly. Before the improvements, the two companies accounted for about half of the city’s overall demand during their peak processing season.
Already conducting a pilot plant study to find a more efficient replacement for the city’s treatment system, CRW Engineering has been additionally tasked with preparing a preliminary engineering report required by the United States Department of Agriculture for the funding assistance building a new treatment system would require.
Jabusch explained part of the funding would be in the form of a loan, whose amount would be determined by the city’s ability to repay. The remaining balance would be in the form of a grant.
First reading of an ordinance enabling the city to issue a sewer revenue bond in the amount of $91,000 was approved. If approved on second reading September 27, the bond will enable the city to finance its share of costs for acquiring and installing improvements to its sewer pump stations.
In April the project was contracted out for $821,000, with an additional procurement approved for $186,380. With engineering and parts total costs are expected at around $970,000.
The lion’s share of the funding is coming from the Alaska Department of Commerce, Community and Economic Development, sourced from the Department of Housing and Urban Development (HUD) block grant funding. This will cover 75 percent of the total costs, with Wrangell responsible for the rest.
For its match, the city turned to the United States Department of Agriculture for further funding, which comes in the form of a $68,000 grant and the $91,000, 40-year loan. Together that brings the city’s share of the costs down to approximately $78,000. Jabusch explained a grant from USDA’s Rural Development financing the bulk of the project was contingent on issuance of the bond.
The Assembly passed on second reading ordinances amending Municipal Code sections on absentee voting by mail and cemetery fees. Regarding the fees, member Mark Mitchell brought forward his concerns that the proposed rise would make it more difficult for long-time residents to afford a burial plot.
“I think we’re already getting taxed to death, and this one we’re getting taxed after death,” he commented.
Clerk Kim Lane explained the city’s cemeteries were already close to running out of space. A number of residents already had reserved plots and service arrangements, but for what space was yet available she said the fee rise would cover administrative costs.
There were sources of grant assistance available for families unable to afford the costs of a plot or service, she added, such as that facilitated by Ketchikan Mortuary.
Assembly members passed the proposal 4-1, with Mitchell opposed.
In other business, at the request of Assembly member Becky Rooney, a special workshop to discuss the removal of accumulated scrap metal will be arranged, with a date to be set.
“I brought this up because a have a concern about derelict vehicles and derelict boats,” she explained. Speaking with counterparts in Sitka and other communities, Rooney suggested Wrangell had some options for handling the disposal of the island’s various scrap.
Wrangell’s disposal yard has lately accumulated a considerable amount of scrap, from junked cars and trailers to old refrigerators, barrels, freezers and generators.
“It’s getting to the point where it’s dangerous,” Jabusch commented.
He pointed out he had heard Juneau-based Channel Construction would be sending a barge up for some work in the near future, and was inquiring whether it would be willing or able to load up any of the city’s excess metal. In past years, the company has removed scrap from the island, recouping the cost through the material’s value.
“I don’t know if that’s the case this time,” Jabusch added.
“Let’s get rid of everything we can,” Mitchell said. “Just getting someone to come and take it is the problem.”
In another discussion, at the request of Assembly member Julie Decker the possibility of supporting a statewide tax on internet sales was fielded. The concept is one of a cache of revenue raising ideas being considered by the Alaska Legislature, including a more general statewide sales tax, institution of an income tax, and hikes on tobacco, alcohol and fuel taxes.
“I just wanted to float (the idea) and see if people think it’s a good idea, or a bad idea,” Decker explained.
With the Legislature likely to take more direct action on the budget after November’s elections, she felt it might be prudent to offer support for a tax which could be of benefit to local commerce.
“Whether we like or hate taxes, they’re all going to be discussed at the next session,” Decker said. “I was thinking an internet sales tax is one of those things that might put local businesses on a more even playing field.”
She contrasted this with another option being considered imposing a statewide sales tax, which would be stacked on top of municipal sales taxes. For Wrangell, which already has one of the highest sales tax rates in the state, the additional levy could pose a problem for local consumers.
Other Assembly members were not receptive to the idea.
“I’m adamantly against even going there,” said Mitchell. “I don’t think as a borough we need to support any tax.”
Rooney wondered whether a tax on internet sales would be considered a statewide sales tax, and if that might jeopardize the relationship Alaska shoppers have with Washington, which allows them to make tax-exempt purchases in the state.
“I try to buy local as much as you can,” she added. “But there are some things that you can’t get here.”
A revised version of the city’s contractor list was presented for approval. Since the August 23 meeting Jabusch said definitions clarifying what makes a contractor “local” or what makes a service provider a contractor were added.
Assembly members approved on first reading a resolution exempting residents of outlying areas – such as Meyers Chuck and Farm Island – from the municipal building permit fee structure. Also approved was conveyance of property to Laurie Brown by quit claim deed in the amount of $34,000. The property is at Lot 5, Block 38 of the Wrangell Townsite, and was offered over-the-counter on a first-come, first-serve basis.
With the election coming up on October 4, one additional candidate has put herself up, with Patty Gilbert submitting as a write-in on the ballot for on of the two available Assembly seats. Currently one other spot on the ballot is vacant, for Port Commission. Candidates for five other positions are currently running unopposed. Those interested in putting themselves on the ballot for any open seats as a write-in candidate are advised to speak with the clerk at City Hall.
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