At the March 21 Regular Assembly Meeting continued on March 22, the Anchorage Assembly approved (9-2) a resolution laid on the table to authorize Assembly Counsel's Office to pursue actions, including an injunction, to halt an unauthorized payment to Roger Hickel Construction, Inc. for construction of the Navigation Center site at Tudor and Elmore; the Assembly resolution specifies the payment is unauthorized because it is beyond the scope of the approved contract.
On February 24, the Administration issued a memorandum to Assembly Leadership expressing the Administration’s intent to settle claims made by Roger Hickel Contracting, Inc. in the amount of $2.455 million by March 24, 2023.
Assembly Leadership issued a response immediately upon receipt of the memorandum, reminding the Administration of AO 2022-105, adopted two months earlier which requires Assembly approval to authorize payments for, “supplies, services, professional services or construction… provided to or performed for the Municipality without an Assembly approval required by Anchorage Municipal Code section 7.15.040.” AMC 7.15.040 and 7.15.080 have long-required Assembly approval of large-dollar contracts and substantial dollar amount amendments.
Dec 16 | Roger Hickel Contracting, Inc. Invoice Jan 27 | Third Party Invoice Review Feb 24 | Assembly Leadership Letter to Administration
“A deadline is looming," said Vice Chair Christopher Constant. “The way I see it, the Mayor has four options, three are legitimate and one is illegal:
First, the Mayor could do nothing and allow Roger Hickel to sue the Municipality for the Mayor's admitted mistake in authorizing the work to Hickel Construction.
Second, the Mayor could propose a settlement by resolution to the Assembly, in compliance with AO 2022-105.
Third, if the Mayor believes AO 2022-105 is unconstitutional, he could file a challenge to it in court.
And finally, the Mayor could violate Municipal Code and break the law by cutting Roger Hickel Construction, Inc. a check without Assembly approval.
I hope he chooses a legal, legitimate option to carry out this work. In the event that he doesn’t, this gives us a tool to address the illegal option.”
“We want the Administration to see the Assembly as a partner in this work,” said Chair Suzanne LaFrance during the meeting, “but we can’t do that unless the Administration follows the code for the required approval and brings the matter to the Assembly before making any payments to Roger Hickel Construction. This doesn’t prescribe us to pursue legal action but authorizes such action in the event that we need it. I want to do what is fair and right for Roger Hickel Construction and for subcontractors and for the public and for the Municipality. While I realize these actions may appear confrontational, the structure that has been laid out gives us the space to do this right.”