Earlier this month, Anchorage Mayor Dave Bronson’s administration admitted it let a $50,000 contract balloon to a $5 million bill without required Assembly approval. Turns out, it’s not the first time members of the Bronson administration let Roger Hickel Contracting, Inc. run up a huge bill, leaving taxpayers holding the bag.
Assembly meeting audio and records show that in 2013, Municipal Manager Amy Demboski and Chief of Staff Adam Trombley – both on the Anchorage Assembly at the time – urged their fellow Assembly members to approve a change order that would allow Hickel to be paid more than what was originally authorized.
Audio from Nov. 05, 2013 and Nov. 19, 2013 Assembly meetings document discussions revolving around the fact that Roger Hickel Contracting had moved forward with $3 million worth of work on an Anchorage Municipal Light and Power project, before ML&P management brought the $4.9 million change order to the assembly for approval.
Demboski stated that the “contractor notified ML&P that there was going to be at least a $3 million overrun. ML&P knew that and did not tell the Assembly.”
The Municipal Manager at the time, George Vakalis, explained further: “The contractor was given the go-ahead to continue on (by ML&P). There was (sic) certainly things that should not have occurred. Specifically during the notification process of the assembly, to get permission early on, to raise the upper limit of the charge order limitation. That did not occur. And we’ve made that very clear. Very, very, clear, that that did not occur and it should have occurred.”
While Demboski notes the Assembly was kept in the dark, she and Trombley also argued that Hickel was acting in good faith.
Much of the conversation centered on the legal ramifications, with Municipal Attorney Dennis Wheeler saying the contract price had been agreed on between two parties – the contractor and ML&P – and could not be changed unless it was shown “there is some material mistake of fact.”
“We are putting a big exposure for the municipality out there that we are going to end up paying anyway, so I’m not willing to risk more taxpayer money when I look at these facts in front of me, and I think we owe it,” Demboski said. “So I will be voting to approve this change order.”
“Wouldn’t it be more beneficial for them to just take it to court, and then we can pay their attorney’s fees, our attorney’s fees and any interest that we are due to them?” Adam Trombley added.
Having gone through this before, it seems odd that Demoboski and Trombley, as well as the contractor, could not have foreseen this coming and worked to avoid it this time around.
Records show that on Dec. 3, 2013 the change order was approved.
