DEPRECIATION

The Borough has also glossed over the cost of depreciation in connection with the Lutak Dock project, obscuring the issue of whether dock revenue will be sufficient to cover ongoing maintenance. Depreciation is an important measure that accounts for decreases in the value of an asset over time.

Excluding it ignores the degradation of the asset from ongoing use, as well as the eventual cost of replacing it. Lutak Dock’s depreciation expenses over the past 11 years totaled $1.6 million, comprising roughly half of its operational expenses.

Despite its important role in determining net revenue, the Borough has left depreciation out of financial charts and information concerning the Lutak Dock, incorrectly suggesting cash revenue would be sufficient to address longterm maintenance costs. When depreciation is accounted for, the dock's revenues from current users do not cover its projected maintenance costs.

Turnagain's cathodic protection system involves a zinc primer and then coating steel pilings with coal tar epoxy.

COAL TAR EPOXY IS NOT BEST PRACTICE, BUT RATHER THE CHEAPEST OPTION.

TOXINS HAVE BEEN FOUND TO LEACH INTO MARINE WATERS AND ACCUMULATE IN MARINE LIFE.

COAL TAR EPOXY CONTAINS HIGH CONCENTRATIONS OF KNOWN CARCINOGENS AND IS BANNED IN NUMEROUS STATES AND CITIES DUE TO ITS TOXICITY AND HEALTH AND ENVIRONMENTAL RISKS.

(Natural Hazard Designated Areas shown in pale yellow)

LUTAK INLET IS LANDSLIDE-PRONE

Landslides, debris flow, flooding, and sloughing.

LUTAK INLET FAULT

Segment of the Denali

Fault: earthquakes, localized tsunamis to 100' above MLLW or higher

The Lutak Dock, its shoreline, and the slopes above the dock are Natural Hazard Designated Areas.