In its first relatively short meeting since concluding its budget process earlier this month, the Borough Assembly nonetheless found time to wade into some sizable items Tuesday.
Members approved moving ahead with a contract offer to Tamico RnR JV for float replacement and general renovation at Shoemaker Bay Harbor, in the amount of $8,355,240. (see related story)
Additionally, a professional services agreement with PND Engineers to the tune of $731,328 for administration and inspection of the project was approved. A project contingency allocation of $417,762 was also given the go-ahead.
City Manager Lisa Von Bargen noted that the city traditionally would bundle such contingencies – pots of money earmarked for
potential design modifications, cost overruns and other unforeseeable expenses forsizable projects – with the main appropriation. However, she felt that practice tends to create a false impression of
actual project costs, so she decided to keep the contingency as a separate item.
With the engineering contract, five-percent contingency, and other costs
for upland utilities during the design phase, the full cost of the Shoemaker project should near $9.6 million. Funding available for the
project was $9.98 million, while earlier estimates had assumed a total cost nearing
$11 million. The likely savings means the city should be able to afford the project without having to undertake any bonding. A revised funding package will be presented to assembly members at a future meeting reflecting this change.
Members also approved an amendment to the city’s nonbinding letter of intent and confidentiality agreement made with SouthEast Alaska Regional Health Consortium, which is moving ahead with an acquisition plan for Wrangell Medical Center. Originally signed back in March, the amendment extends the agreement between the city and SEARHC beyond its expiration date of June 30.
At the moment, both parties are conducting due diligence on an asset purchase agreement, which would pass ownership of the municipal hospital to SEARHC by September 1. If seen through successfully, the organization would invest in a new medical facility, one sharing a campus with the Alaska Island Community Services clinic on Wood Street, another recent acquisition.
Though the budget for the fiscal year starting Sunday was already passed at a previous meeting, assembly members informally revisited one vexing item, namely WMC’s budget. The item projected an approximate deficit of $800,000 for the year.
“I’m very disappointed in myself for voting to pass the hospital budget,” remarked member Stephen Prysunka.
In particular, he felt that little discussion had been allocated to that budget, also noting hospital administrators had been absent when it was presented. While theirs was not the only staff not on hand when department budgets were up for consideration during the process, Prysunka conveyed his disappointment that there had been no opportunity for asking questions.
Mayor David Jack echoed that thought, saying “That’s very difficult to us here, and it’s showing a great deal of disrespect to us thinking we’re just going to rubber stamp it.”
As the SEARHC acquisition moves ahead, Prysunka requested that Von Bargen take closer oversight over major procurements or personnel changes that may occur at the hospital, since both parties were moving ahead with a certain set of assumptions.
“Things need to remain as unchanged as possible at this point,” she agreed.
In other borough business, Von Bargen noted a large reduction in outstanding property tax payments after running a foreclosure list in the newspaper last week. Prior to publication, she said there were 236 outstanding payments due on 163 parcels since 2013. Within less than a week, that number had been reduced to 96 payments on 63 parcels.
“That’s a significant drop,” she commented.
The list will continue to run through the July 12 issue, after which the city can begin the formal foreclosure process.
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