Assembly roundup

In its meeting December 13, the City and Borough Assembly approved issuance of a new sewer revenue bond.

Amounting to $91,000, the 40-year bond will finance a portion of the cost to acquire, construct and install additions to two of the borough’s main sewer pump stations. The work includes new piping and control systems for the stations, which together service about 80 percent of the city’s waste.

As of this month, Public Works estimated the city’s sewer system has treated 112,994,910 gallons of wastewater, while maintaining 1.5 employees at the treatment plant. The system maintains 16 main line stations and 24 grinder stations, with a total of 40 different maintenance sites.

Replacement of the two aging stations appeared two years ago as an item of some urgency, as their failure would have been disastrous for the city. The project to replace them was estimated at around $970,000, including parts and engineering. Most of the funding has come from Department of Housing and Urban Development (HUD) block grant funding, routed through the Alaska Department of Commerce, Community and Economic Development.

For its match, Wrangell will pay out $78,000. To make up the difference, the city is receiving a $68,000 grant from the United States Department of Agriculture – Rural Development, contingent on its taking out the $91,000 bond.

The city previously approved the bond on September 27, but the language was insufficient for the transaction. The new ordinance repeals this and issues one meeting USDA’s specifications. Approval of the loan amount had previously been passed by the Assembly last year.

The Assembly also approved the sale of its belt freezer and adjacent lot to Trident Seafoods at the appraised value of $950,000. Before making the decision, member Julie Decker brought up a potential conflict of interest, as she is involved in the seafood industry. As the decision had no direct financial effect on her, Mayor David Jack dismissed the concern.

The freezer building was built a decade ago using some city funds and a state grant. The idea was to enhance local seafood industry with a value-added service. Trident predecessor Wrangell Fisheries first made use of it by lease, which was continued under the current business.

Currently Trident leases the facility for $15,000 a year and the city noted property taxes paid on the lot following the sale would effectively bring in more than that. With other efficiencies in its processes, Trident has made less use of the belt freezer in recent years, and would find a more useful purpose for the lot and building after sale. It presented an offer to the borough to purchase these back in June.

Sale to Trident is allowed by municipal code without a public bid process, as the amount comes to less than $1,000,000,000. Given the opportunity to examine the proposal, the Port Commission, Planning and Zoning Commission, and Economic Development Committee had no objections to the sale.

City staff determined the continued purpose of the grant-funded facility would be continued after the sale, and the granting agency had no objections. Proceeds from the sale would be used for other economic development projects, as directed by the Assembly.