Assembly Report for July 24, 2007

ASSEMBLY CONSIDERS TAX BREAKS TO REBUILD SHIP CREEK POWER PLANT: A derelict power plant built in Ship Creek some fifty years ago may see new life if a local developer wins a tax break from the Anchorage Assembly he claims is necessary to "jump start" renovation of the building. Marc Marlow, doing business as Kapp development, proposes to invest some $20M to rebuild the old power and steam plant located at Ship Creek , install new gas turbines to produce heat and electricity, and sell energy to all comers, including ML&P and Chugach Electric Association (CEA).

The Anchorage Assembly was asked on Tuesday night to consider a ten year tax exemption on the property together with an additional five year tax deferral, both of which Marlow says are necessary to make the project economically viable. From financial records he submitted to the City, Marlow says the city will ultimately recoup all of its original "investment" in tax breaks and then receive considerably more in higher tax revenues from the improved property than it would receive if the property were simply left in its current, deteriorated state. Chief Fiscal Officer Jeff Sinz told Assembly members Marlow had not supplied sufficient financial information about the project upon which he could make a recommendation on the tax relief requested.

After hearing from Marlow and a handful of people who testified on the matter, the Assembly .voted to allow any member to present a resolution addressing Marlow’s application and, on receipt of that resolution, schedule a further public hearing on the project.
The proposed plant will produce 120 MW of electrical power and steam using natural gas. By comparison, the city’s ML&P generates sone 330 MW within municipal boundaries.

NOISE ORDINANCE REVISIONS IN THE WORKS: Several months of work by the Department of Health and Human Services resulted in comprehensive revisions to the city’s noise ordinance proposed Tuesday night. AO 2007-105 as presented, would make a number of technical and substantive changes to the city’s noise ordinance, found at Chapter 15.70 of the Anchorage Municipal code. A public hearing is set for November 6, 2007.The ordinance will be referred to a special committee appointed by Dan Coffey and Debbie Ossiander for consideration before it goes before the Assembly for action. Noisemakers such as construction companies, rock concert promoters and those who complain about noise such as residents and pedistrians should contact the clerk’s office (343-4311) for copies of the ordinance and analyze potential impacts the new legislation might have on noise in Anchorage.

UPDATE ON ASSEMBLY CHAMBERS MAKEOVER: Apparently spurred into action by reports in the Tesche Report on July 17th and a lead story in the Daily News yesterday, Assembly "leaders" yesterday quickly transferred $125,000 from an obscure, unrestricted account in order to fund the first phase of a $450,000 makeover of the Assembly chambers.

Yesterday’s action by Assembly chair Dan Coffey and city clerk Barbara Gruenstein allows the pair to upgrade the Assembly chambers sound and lighting systems and computer equipment without Assembly discussion in public or its formal approval. Gruenstein was unable to point to any specific document or motion approved by a majority of the Assembly approving chambers upgrade.

Until yesterday, the $125,000 languished in account 3942, a highly unusual "unrestricted" account under the Assembly Department with no identified use or purpose. Apparently the fund has, from time to time, been used by the Assembly chair to pay unbudgeted projects expenses without oversight or approval by other members of the Assembly. According to Chief Fiscal Officer Jeff Sinz, comparable "unrestricted accounts" from which other municipal agency heads can pay unbudgeted expenses without oversight by the mayor or the Assembly, do not exist.
Transfer of the money out of Account 3942 may moot public discussion of alternative uses for the money. The money may now have been spent. During Assembly debate on October 31, 2006 before adoption of the 2007 general government budget, the majority rejected a motion by Assembly member Tesche to use funds that ultimately went into fund 0000 for Anchorage Police recruiting.