Could hiring an independent lawyer and a project manager help clear up issues with the Lutak Dock project? Haines’ elected officials think so. KHNS’s Max Graham has the story.
The Haines Borough Assembly voted Tuesday to hire an Anchorage-based law firm to review questions about the Lutak Dock project and the borough’s contract with Turnagain Marine Construction, including a review of an invoice for $2.8 million that the contractor submitted last month to the surprise of local officials.
Assembly members also directed borough staff to solicit bids for a project manager, citing concern over a lack of leadership and borough representation in discussions with contractors on the project.
The new lawyer would not replace the borough attorney, Charles Cacciola, but instead would be intended to provide a new perspective specifically on the project record dating back to September 2022, when the borough entered into its first contract with Turnagain.
It’s not clear how much the hires would cost. The borough already has a $200,000 contract with engineering firm R&M Consultants to advise on the project. That includes services like project management, design, and permitting review.
Assembly member Natalie Dawson, who made the motions, said hiring another lawyer is worth it given the “substantive amount of money that’s involved” and that a project manager would serve as an advocate for the borough, keeping close tabs on the project as it progresses.
“I do think it might be helpful to have additional legal counsel in this case — especially, and no offense Charles, but someone that’s unattached to the prior decision-making that can look at this with fresh eyes.”
Mayor Tom Morphet supported the moves, arguing that spending on help now could save the borough from accruing more costs later. “The mo’ lawyers, the mo’ better at this point,” he said.
Dawson moved to hire JDO Law, one of the firms that separately applied earlier this year to replace Cacciola’s firm — Chandler, Falconer, Munson & Cacciola — whose contract expires later this year. (JDO’s office manager did not respond to a request for comment.)
Both motions — to hire JDO and to put out a request for proposals for a project manager — passed 4-2. Assembly members Debra Schnabel and Gabe Thomas opposed the motions.
“I think we need to be a little more specific about what we want out of hiring another attorney,” Schnabel said. “In my opinion the bill issue seems to be very well understood by Mr. Cacciola. I don’t see a lot of issues in his approach to getting ourselves on the right foot regarding the invoicing.”
Cacciola advised the assembly last night to reject Turnagain’s invoice and ask for a revised schedule of values, which is an itemized list of work that a contractor can be expected to do under a contract. After brief public remarks, he spoke to assembly members and borough manager Annette Kreitzer during an hour-long executive session.
Cacciola said that construction contractors often request progress payments but that Turnagain originally asked the borough on April 8 for payment that’s “totally unconnected to any work performed.”
According to Cacciola, the firm fixed that issue in an updated invoice on April 16, but still seemingly charged for work that was not part of the firm’s contract with the borough. The April 16 bill includes more than $1 million for design and $500,000 for project management, among other costs.
If Turnagain needed to do work beyond the scope of the contract, Cacciola said the firm would need to ask the assembly to approve an amended schedule of values before sending an invoice.
In an email to KHNS, borough manager Kreitzer said the costs reflected on Turnagain’s April 16 bill did not need preauthorization by the U.S. Department of Transportation’s Maritime Administration and could be reimbursed under the provisions of the $20 million federal grant that the borough was awarded for the project. Assembly members had raised concern that the costs, if the borough is indeed liable for them, would not be covered by the grant.
In other news, the assembly voted to table an ordinance that would require companies to containerize all ore shipped out of Haines, a move that would have emulated Skagway, which adopted a similar proposal hoping to cut down on pollution. Officials voted to create an ad hoc committee to review the ordinance and consult with the Chilkat Valley’s two tribal governments.
The assembly also voted to add $75,000 to a draft budget for the upcoming fiscal year to bring the Freeride World Tour to Haines for the next two or three winters. That’s an international extreme skiing and snowboarding competition that was held in Haines from 2015 through 2017.
Haines Borough tourism director Rebecca Hylton said the $75,000 doesn’t need to be cash; it could be in the form of services or sponsorships. “I’m torn on it, honestly,” she said. “Fiscally I don’t feel like it might be the most responsible thing to do just because I value Haines and the product we have here, and I would love to welcome this event and organization to town, but I don’t feel like we should be paying them.”