Insurance company denies $2.3 million claim for Mat-Su port repairs
The borough last week learned its
The borough got the bad news in a letter from
Chubb and another insurance company covering the port denied the claim because the damage apparently started when the dock was built 16 years ago, Van Dongen said.
"I understand an insurance policy doesn't cover that," he said during an interview Wednesday, adding that the borough is contesting the decision but he wasn't optimistic.
If final, the denial could mark the latest financial hit at Port MacKenzie, which brings in little revenue but has cost millions in a cash-strapped borough that already faces other potential expenses linked to the never-used ferry Susitna, sold last year to the
The Mat-Su dock is the same unusual design -- Open Cell Sheet Pile construction -- that was used in a botched
The Mat-Su port, still waiting on a stalled rail extension managers tout as a future economic driver, is considerably quieter than
The beleaguered barge dock handled 32 vessels in the summer of 2015 -- the most since it was built in 1999 -- but only nine were barges. Just one barge called last summer, as the port contended not only with dock repairs but problems with an anti-corrosion system.
Van Dongen said the port is expecting more traffic this summer from an
The damage at the center of the insurance claim likely stems from a Y-shaped steel piling that hit an obstruction -- like a rock -- when it was driven into the mud of
Over the years, the crack expanded, but the extent of the problem didn't surface until a rapidly expanding sinkhole emerged.
To repair the problem, the
The repairs were finished by the end of
"And then five months later, in October, we had a failure of the repair," he said.
The first sheet pile connected to a tail wall tore right up the center, from its base nearly to the top, he said.
Crews stabilized the dock and winter ice is holding it fast, Van Dongen said. He doesn't know what caused the sheet pile to tear, though there was a relatively small earthquake that day.
The borough is expected to put long-term repairs out for bid next month.
If the insurance claim is ultimately denied, the borough still has more than
The Assembly would have to approve any additional funds.
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