Assembly moves $850K into Port MacKenzie dock contingency reserve

March 20, 2005

DAWN De BUSK/Frontiersman reporter

PALMER - After a lengthy discussion and some clarifications during Tuesday's regularly scheduled meeting, members of the Mat-Su Borough Assembly unanimously approved moving $850,000 from three other fund sources into a contingency reserve for the Port MacKenzie deep-water dock project.

The approved ordinance would provide the financial support for the dock at Port MacKenzie from three other borough sources: $575,000 from the land management fund, $120,000 from the areawide fund balance and $155,000 from the non-areawide fund balance.

Part of the funding will be used to pay for work done on the dock last winter as well as work that must be redone this spring. The cost overruns on the original project totaled $200,000, said Borough Manager John Duffy.

Some of the work, which must be finished this spring, includes repairing cracked welds, installing quick-release hooks and putting gussets in place, Duffy said.

Last summer, $850,000 was approved for port construction. In meetings June 1, 2004 and June 15, 2004, the same ordinance appeared before the Assembly and was passed. At that time, Assembly members were under the impression that the work would be completed in late fall, and that the funding needed would be used in 2004. The ordinance stated that each time money was used, it would first be approved by the Assembly.

Since Port MacKenzie didn't use the contingency fund before Dec. 31, 2004, the money reverted back to the original fund sources from which it was reappropriated, according to Cheyenne Heindel, borough revenue and budget division manager.

The borough did not receive the bill for dock construction until close to the end of the calendar year, Duffy said.

Assembly Member Jim Colver questioned whether it was wise to let the contractor know how much money is set aside for cost overruns.

"I would like to have seen a financial sketch of what was going on (last year)," Colver said.

He also said port construction claims against the borough should be addressed first.

"We need to get claims resolved before spending any more money. This doesn't leave us with a very rosy financial picture. (Let's) settle claims before going out on a limb," Colver said.

There was some discussion as to whether this reappropriation could be tabled until the next meeting.

"We must pay our bills," Borough Attorney Teresa Williams said.

"This is voter-approved and Assembly-approved. Let's get on with it," Assembly Member Jody Simpson said.

Prior to the vote, the Assembly amended the ordinance, saying that the claims must be resolved before the funding is used for future construction.

The assembly also reviewed a motion to appeal a ruling by Palmer Superior Court Judge Beverly Cutler that would bring the matter of a tax-cap initiative before Valley voters. Assembly members unanimously defeated the motion to try to change the court ruling.

"Basically I voted to not pass it because it would interfere with the people's right to speak," said Assembly Member Betty Vehrs, adding that if the Assembly had voted to appeal, the tax-cap initiative would become tied up in court.

"I'm not going to look the public in the eye and deny their right to petition," Assembly Member Jody Simpson said.

In 2004, the sponsor of the tax-cap initiative filed an application and it was denied, said Borough Clerk Michelle M. McGehee.

In other business, the assembly unanimously approved providing $65,000 to fund a new fire truck and its equipment. The money to buy the truck will be moved from the Wasilla-Lakes fire service area fund to the fire service area capital project fund.

The cost of steel has increased by 40 percent, causing the fire engine to be more expensive than originally anticipated.

The borough Assembly also agreed to reappropriate funds to the Animal Care and Regulation Division operating budget so the division could purchase more live animal traps and equipment. The $3,935 needed to fund animal control was moved from the capital projects for 2005 fund.

Also during Tuesday's meeting, the assembly approved the extension of a mainline water and sewer system to serve the Valley's new hospital, Mat-Su Regional Medical Center, and other areas along the route.

Before the motion, Colver excused himself from voting, saying he had a friend who would be working on the project.