Wrangell Sentinel -

In what was Mayor Jeremy Maxand’s last regular meeting as an elected official in Wrangell, the Borough Assembly met in open session on Tuesday, Sept. 25.

In his biweekly report to the Assembly, Borough Manager Tim Rooney updated the group on the lawsuit between the borough and former Wrangell Medical Center CEO Noel Rea.

“On Monday, September 17, 2012 the City and Borough of Wrangell filed a motion and memorandum for order for return of laptop computer and iPad to (allow) for forensic examination,” the report stated. The motion and memorandum were attached for the review of the assembly members.

Rooney also reported on a recent ruling by the Federal Energy Regulatory Commission that goes against a proposed permit for a hydroelectric project.

“On September 20, 2012, the Federal Energy Regulatory Commission provided a ruling yet again denying Cascade Creek's application for a third preliminary permit for the Cascade Creek Hydroelectric Project No. 12495,” Rooney’s report states. “FERC had issued its original decision in January of 2012 and that decision was appealed by Cascade Creek in February of 2012.

According to Rooney, the order issued on September 20, 2012 denies the appeal for a rehearing – and staff will review the decision with Borough Attorney Bob Blasco in order to discuss possible options moving forward regarding the return of the $250,000 investment of taxpayer dollars made by the borough in January 2009.

The proposed SEAPA takeover of the Tyee hydroelectric facility will be listed on the Sept. 25 assembly agenda for the purpose of scheduling a workshop to review and discuss the findings of a report that recommends the severance of an operational contract with Thomas Bay Power Authority.

Rooney also informed the assembly about the quickly approaching wrap-up of the Front Street renovation project.

“The Downtown Revitalization Project is rapidly nearing completion,” Rooney stated. “The final inspection walkthrough of the project has been scheduled for Tuesday, October 2, 2012 beginning at 10:30 a.m.”

The initiative to lower Wrangell’s sales tax rate was also addressed in the report to assembly members.

“(The) sponsors, Mr. Ernie Christian and Ms. Rhonda Dawson have picked up the petition booklets from the Borough Clerk's office. Both Mr. Christian and Ms. Dawson have 90 days from the date the petition booklets were issued in which to obtain 94 signatures of registered voters for the petition to be voted on by Wrangell citizens. If the signatures are obtained and verified, the petition would be voted on by voters at the next regular borough election to be held on October 1, 2013,” the report states.

According to Rooney, city staff received confirmation this week that Keith Perkins with USDA will now be the point person for anything related to moving forward on the WMC renovation project. Perkins represents the USDA's Rural Development Office and works out of Sitka and has extensive USDA project experience, working on several different federally funded projects.

“At the request of Mr. Perkins, I provided notification that the City and Borough of Wrangell desired to terminate the existing loan application so that USDA could de-obligate the ARRA financing that has been obligated for the WMC project,” Rooney stated.

The borough is set to begin working with Perkins on a new loan application utilizing non-ARRA financing in the near future.

The borough is also in the process of preparing to sell off surplus equipment not being used any longer in the municipality.

“(Jeff) Jabusch is currently in the process of developing a list of surplus equipment that is no longer needed for disposal. Once finalized, the list of items along with a description of each with a minimum bid will be placed in the newspaper for public advertisement,” Rooney stated.

In other business, the assembly approved a capital outlay of $45,000 for the Lynch Street paving project.

“As discussed in both the August 24, 2012 and September 7, 2012 Borough Manager's Reports, staff was in the process of developing cost estimates to address paving concerns on Lynch Street,” Rooney stated. “Currently, the plan is to pave it with six inches of concrete to match the work already performed on Brueger Street and the north end of Campbell Drive. Under this scenario, the city would purchase the concrete and perform the excavation and preparation for concrete installation.

During the “persons to be heard” section of the agenda, resident Bill Knecht spoke up in favor of the positive direction he said he saw at the most recent Wrangell Medical Center Board of Directors meeting – but raised an issue, along with Assembly member David Jack, that might relate to a violation of Alaska’s Open Meetings Act.

The board, during their Sept. 19 meeting, took a guided tour of the facility – though out of the presence of the public in attendance.

“I thought it was very inappropriate that the board walked off and left the public sitting there,” Knecht said. “I’m sure, though, that it’s just a learning curve.”

Dr. Greg Salard also spoke during the session and, aside from advocating for his reinstatement and privileging at WMC, implored the assembly to inquire why the law firm of Garvey, Shubert and Barer – and particularly attorneys Roger Hillman and Stephen Rose – were still involved in ongoing work for the hospital regarding an insurance issue.

Both attorneys were involved in offering advice to the former, recalled WMC board.

“I have a problem with these attorneys working for the hospital in any capacity,” Salard said.

Maxand told Salard he would ensure an investigation into the matter.

“I think the borough attorney, through ordinance, has the power to essentially deny or authorize counsel to the hospital board and administrator,” Maxand said before assuring Salard that the assembly would look into the attorney’s further work for the hospital.

The next meeting of the assembly will be a special meeting on Oct. 8 at 5:30 p.m. to certify the results of the Oct. 2 general election.