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2017-05-18 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting May 18, 2017 A regular meeting of the Kodiak Island Borough Assembly was held on May 18, 2017, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 6:30 p.m. The invocation was given by Major David Davis the Salvation Army. Mayor Rohrer led the Pledge of Allegiance. Present were Mayor Dan Rohrer, Assembly members Kyle Crow, Larry LeDoux, Rebecca Skinner, Scott Smiley, Dennis Symmons, Dave Townsend, and Matthew Van Daele. Also present were Borough Manager Michael Powers, Deputy Clerk Laurie Pardoe and CDD Secretary III Sheila Smith. APPROVAL OF AGENDA AND CONSENT AGENDA LEDOUX moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES The regular meeting minutes of March 23, 2017 and May 4, 2017 and special meeting minutes of May 4, 2017 were approved under the consent agenda. CITIZENS' COMMENTS Beth Dunlop asked the Assembly to spend as much as feasibly possible on the school district. She expressed concern that budget cuts could impact programs, staff, classroom size, and student performance. She noted that quality schools help to attract professionals to the Kodiak community. Ian Whiddon spoke in opposition to a fish box tax and explained the difficulties it could pose for fish processors, charter operators, and the tourist industry. Chris Fiala spoke in opposition to a fish box tax. He elaborated on potential difficulties for his charter business and the effects on his customers and the overall growth of the charter industry in Kodiak. Chastity McCarthy spoke regarding the tourism fund. She encouraged the Assembly to continue funding tourism and keep the community diverse. She reported on the activities of the airport visitor's center, cruise lines, and conventions and their effects on bed tax revenue. She promised that the funds were being put to good use on vetted projects that were worth funding. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 1 of 10 Jacob Mock spoke as a resident of Fairbanks borough visiting Kodiak for a fishing trip. He spoke in opposition to a fish box tax, explained the expenses of his trip, and was unsure if he would choose an alternative destination for his next trip. John Abel spoke in opposition to a fish box tax and talked of the difficulties of running a charter boat in Kodiak. He was concerned about losing his clientele and the future of the tourist industry in Kodiak. Gary Salter spoke in opposition to a fish box tax and feared it would be a slow death for charter operators. He mentioned that changes in regulations and raised fees at the state level were already a concern for his business. He has lost thousands of dollars in cancelations from his customers already this year. Judi Kidder echoed the comments of the charter operators. She explained that the Kodiak Association of Charter Operators (KACO) promotes the charter and tourism industries while benefiting the community through programs that take local kids fishing. She asked the Assembly to support and promote the industry rather than tax it. Scott Arndt asked that the Resolution for school district and the Fee Resolution to go before public hearings next year. He spoke regarding changes he would like the Assembly to make to various fees on the resolution. AWARDS AND PRESENTATIONS Mayor Rohrer proclaimed May 21 Through May 27, 2017 as safe boating week urging everyone who boats to "Wear It" and practice safe boating habits. The proclamation was presented to Nicole Clark, Auxiliarist. COMMITTEE REPORTS Chief Rue reported that the Bayside Fire Department had received a grant from the forestry service which was used to purchase tools which were received and had already been put to good use. Assembly member Symmons asked Assembly member Van Daele to report on the Solid Waste Advisory Board (SWAB) meeting. Assembly member Van Daele had attended the SWAB meeting on Assembly member Symmons behalf. The three primary discussion items were plastic bags, glass, and a review of the annual Community Cleanup Day. A draft ordinance concerning plastic bags would be introduced for public comment at the next SWAB meeting. They discussed potential issues with developing a glass recycling facility which included a location to put the apparatus. Community Cleanup Day went very well despite rainy weather. He invited the public to attend the next SWAB meeting on June 5. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 2 of 10 Assembly member Crow announced that the next Kodiak Fisheries Workgroup meeting would be held on June 21. PUBLIC HEARING Ordinance No. FY2017-15 Establishing A Long -Term Care Center Enterprise Fund. LEDOUX moved to adopt Ordinance No. FY2017-15. Both the hospital facility and the long-term care center revenues and expenses were accounted for within the same Hospital Facilities enterprise fund. This ordinance would make a separate enterprise fund for the long-term care center. This separation would increase the financial transparency of the different operations. Mayor Rohrer opened the public hearing. Seeing and hearing none, Mayor Rohrer closed the public hearing. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Crow, LeDoux, Skinner, Smiley, Symmons, Townsend, and Van Daele. 2. Ordinance No. FY2017-29 Amending Sections Of The Kodiak Island Borough Code Title 18 Borough Real Property, Chapter 18.20 Real Property Disposal - In General To Address Certain Methods And Means Of Borough Land Disposal Process. SKINNER moved to adopt Ordinance No. FY2017-29. The Borough Lands Committee proposed expanding and clarifying existing code language in KIBC Title 18 Borough Real Property. The code sections addressed here would permit a competitive disposal process to solicit design proposals for borough owned land that is backed by private sector investment interest. This would have the benefit of allowing the community to get the kind of development that is needed or expressed in adopted comprehensive plan guidance without having to become its own developer. It would also reduce or eliminate the need for the borough to invest large sums of cash into a project that could take years to come to fruition. Mayor Rohrer opened the public hearing. Scott Arndt commented that the Lands Committee proposed that lines 59-61 be deleted because they were repetitive of lines 54-56. He also asked the Assembly to amend lines 109- 110 and change the number of days to 90 to 120 days. Mayor Rohrer closed the public hearing. VAN DAELE moved to amend by deletion lines 59-61. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: LeDoux, Skinner, Smiley, Symmons, Townsend, Van Daele, and Crow. VAN DAELE moved to amend by substituting "30 to 90 days" to "30 to 120 days" on line 109. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 3 of 10 ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Skinner, Smiley, Symmons, Townsend, Van Daele, Crow, and LeDoux. ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: Smiley, Symmons, Townsend, Van Daele, Crow, LeDoux, and Skinner. 3. Ordinance No. FY2017-30 Amending Sections Of Kodiak Island Borough Code Title 18 Borough Real Property, Chapter 18.20 Real Property Disposal — In General, To Address Certain Payment And Notice Requirements. LEDOUX moved to adopt Ordinance No. FY2017-30. The Borough Lands Committee proposed to improve and streamline the borough land disposal process. In addition, they had endeavored to conform the language of KIBC 18.20, Real Property Disposal - In General, with the applicable language in KIBC 18.30, Sale of Borough Land. Mayor Rohrer opened the public hearing. Hearing and seeing none, he closed the public hearing. CROW moved to amend lines 64-81 with the following language: 8.20.140 Public notice. Notice of disposal of borough land by competitive bidding or proposals, or at public auction, shall be provided to achieve the best possible sale price or advantage for the Borough. At a minimum, each land sale shall be marketed and advertised via newspaper and radio announcements, the Kodiak Island Borough Web Site, and public postings for at least two consecutive (2) months prior to the sale. Additional notice may be given by any means determined to be reasonable by the manager or the assembly (including commercial real estate listings, "For Sale" signs and/or banners, flagging, and other high visibility advertising and markings at the property.) The written notice must include a brief description of the land, its size and general location, the proposed use, term, minimum offer, limitations, and special considerations, if any, and time and place set for the auction or bid opening. The land status file of the parcel shall be made available to any individual upon request. All prospective and interested parties shall be urged to personally examine the parcels prior to the sale. There shall be no representation or warranty concerning the condition of the property, the presence or absence of any environmental pollution, or the suitability of the property for any particular use. SKINNER moved to postpone Ordinance No. FY2017-30 to the August 17 regular meeting of the Assembly. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Symmons, Townsend, Van Daele, Crow, LeDoux, Skinner, and Smiley. 4. Ordinance No. FY2017-31 Rezone Of U.S. Survey 672 From R1 -Single -Family Residential District To kIndustrial District (P&Z Case 17-017). Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 4 of 10 SKINNER moved to adopt Ordinance No. FY2017-31. U.S. Survey 672 was the site of the Icicle Seafoods Inc. processing facility in Larsen Bay. The seafood processing use was established on the property in the early 1900s and predated the site's R1 -Single -Family Residential District zoning designation, which came by blanket Ordinance No. 77-19-0. The plant had been in continuous operation for over 100 years and had proven compatible with the character of the community and surrounding land uses. Thirty-six public hearing notices were mailed out on May 5, 2017 and none were returned. Mayor Rohrer opened the public hearing. Scott Arndt, P&ZC Chair, noted that this was the last few remote canneries. He recommended adoption of this ordinance. Mayor Rohrer closed the public hearing. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Townsend, Van Daele, Crow, LeDoux, Skinner, Smiley, and Symmons. BOROUGH MANAGER'S REPORT Manager Powers briefly reported on the following: • Governor Walker calling a special session since the budget is not yet adopted • Meeting with people wanting to start businesses in Kodiak • Attended the Chamber of Commerce Board of Directors meeting • Hospital lease will be introduced on June 15 for adoption MESSAGES FROM THE BOROUGH MAYOR Mayor Rohrer announced the following: • May 22 from 10 to 3 p.m. will be the follow up meeting on the Opioids • In contact with Representative Stutes and her staff. They are planning to invite Legislators to visit Kodiak on August 20, 2017 UNFINISHED BUSINESS None. NEW BUSINESS Contracts None. Resolutions 1. Resolution No. FY2018-01 Establishing The Amount Of Funds To Be Made Available From Local Sources For The Kodiak Island Borough School District For The Fiscal Year Beginning July 1, 2017 And Ending June 30, 2018 Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 5 of 10 SKINNER moved to adopt Resolution No. FY2018-01. LEDOUX declared a conflict of interest and recused himself from voting. Per Borough Code, the Assembly should determine the total amount of money to be made available from local sources for school purposes and should furnish the School Board with a statement (resolution) of the sum to be made available. KIBC 3.15.050 provided that by June 10 the Assembly should appropriate the amount to be made available from local sources for that purpose in the Borough budget. KIBC 3.35.060E provided that the property tax levy for school and municipal purposes should be separately made and fixed. KIBC 3.60.020 provided that all motor vehicle registration taxes would be allocated to the area wide school system. At an estimated mill rate of 6.95 mills the estimated property tax revenues for education will be $9,124,500 plus motor vehicle tax in the amount of $253,000 for a total allocation of $9,377,500. ROLL CALL VOTE ON MOTION CARRIED SIX TO ZERO: Van Daele, Crow, Skinner, Smiley, Symmons, and Townsend. 2. Resolution No. FY2018-02 Reestablishing The Fees For The Kodiak Island Borough SKINNER moved to adopt Resolution No. FY2018-02. SKINNER moved to postpone Resolution No. FY2018-02 to the next regular meeting of the Assembly. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Crow, LeDoux, Skinner, Smiley, Symmons, Townsend, and Van Daele. Ordinances for Introduction 1. Ordinance No. FY2018-01 Levying Taxes On All Taxable Real And Personal Property Within The Kodiak Island Borough For All The Expenses And Liabilities Of The Kodiak Island Borough For The Fiscal Year Commencing On The First Day Of July 2017 And Ending On The Thirtieth Day Of June 2018 (Fiscal Year 2018 Budget). SKINNER moved to adopt Ordinance No. FY2018-01 in first reading to advance to public hearing at the next regular meeting of the Assembly. SKINNER moved to amend Ordinance No. FY2018-01 to reflect the wishes of the Assembly to not raise the mill rate specifically on lines 42-46 as follows: A. Kodiak Island Borough General Fund 0.62 mills B. Education Support Fund 6.80 mills C. Debt Service Fund 2.03 mills D. Renewal and Replacement Fund 1.30 mills Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 6 of 10 Total Area wide: 10.75 mills ROLL CALL VOTE ON MOTION TO AMEND CARRIED FIVE TO TWO: LeDoux, Skinner, Symmons, Townsend, and Crow (Ayes); Smiley and Van Daele (Noes). ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: Skinner, Smiley, Symmons, Townsend, Van Daele, Crow, and LeDoux. Other Items 1. Confirmation Of The Mayoral Appointments To The Kodiak Workforce Regional Advisory Council. SKINNER moved to confirm the mayoral appointments of Ms. Zawacki to the Human Resource Services seat and Mr. Plantz to the Business Management and IT seat on the Kodiak Workforce Regional Advisory Council for terms to expire December 2019. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Smiley, Symmons Townsend, Van Daele, Crow, LeDoux, and Skinner. CITIZENS' COMMENTS Judi Kidder, Jeff Stewart, and Scott Arndt commented on the budget. Michael Powers commented motor vehicle registration tax is allocated to school district and can be amended. Staff's recommendation is to do so. ASSEMBLY MEMBERS' COMMENTS Assembly member Symmons was thankful for comments presented by charter boat operators at the meeting. He urged people who do not attend Assembly meetings to call assembly members and share their ideas. Assembly member LeDoux expounded on the challenges of creating a tighter borough budget while considering a community that is hurting financially. He felt the public needed to know how hard the Assembly had worked to avoid a tax increase while balancing the services the community wanted and what they could actually pay for. Assembly member Crow thanked the charter operators for their informative comments concerning a fish box tax. He suggested that the SWAB could get contractors involved in glass recycling to keep it out of the landfill. He expressed interest in learning more about people who want to start businesses in Kodiak. He thanked the manager and finance director for their work in constructing the budget and appreciated that it was not easy task. He spoke concerning the resilience of Alaskans and his confidence that the community would pull through. Kodiak may need to find new revenue sources to withstand the financial surprises and fishery disasters. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 7 of 10 Assembly member Skinner noted that the assembly had previously decided to pull the fish box tax proposal for fiscal year 2018. It was helpful to hear public comment from people who would be impacted by new tax or fee proposals. She would be interested to hear more from the charter operator group about how they think local government could support in their segment of the industry. She appreciated that the school district budget request took into consideration what borough could afford and she recognized that they worked hard to come up with the reduced number. She expressed gratitude to the public for attending or listening to the meeting on the radio. She requested an attorney opinion regarding borough authority to restrict or ban plastic bags within city limits. She also would like to inquire about the city's authority to opt out of such a ban. She stated that the Assembly worked hard to keep budget tight and keep the mill rate level. Due to debt reimbursement, she noted that the Assembly would likely need to increase the mill rate in 2019 unless circumstances change, costs shift, or services are reduced. Assembly member Smiley voiced concern about deferred maintenance issues and felt it was necessary to address them. He expressed concern that the community was hurting from taxation. He understood concerns expressed by the charter industry and that they were being hit from all sides. He noted that local government was also being hit due to the inaction of state and federal governments. He noted that local government does not have the option to put off paying their bills or pass them to a lower level of government. He had attended most of the school board budget sessions and was thrilled they were able to find ways to cut $900,000. He noted that the budget discussions had been painful but the Assembly understood their responsibility to pay the bills and to keep costs low for the community. He believed that the community would have to face a mill rate increase in 2019 due to more cuts from the state legislature. Assembly member Van Daele encouraged members of the public to reach out to the assembly and share their thoughts. He noted that the local newspaper had been doing a great job advertising the Assembly's contact information. He encouraged members of the public to call the Assembly members directly if they could not attend meetings. Assembly member Townsend remarked that there were a lot of comments on the budget. He thanked Manager Powers, Finance Director Cross, and staff for the amount of work they put into the budget. He noted that the assembly had worked hard to keep the mill rate level and had to make difficult choices. The Assembly is exploring ideas to increase revenue but is not necessarily ready to implement them. He expressed that it would benefit the mill rate if more people were to buy property and live in Kodiak. Announcements Mayor Rohrer announced that the next Assembly work session would be held on Thursday, May 25 at 6:30 p.m. followed by an Assembly special meeting at 9:30 p.m. in the borough conference room and the next Assembly regular meeting was scheduled for Thursday, June 1 at 6:30 p.m. in the borough assembly chambers. He announced the borough offices would be closed on Monday, May 29 in observance of Memorial Day. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 8 of 10 EXECUTIVE SESSION Discussion Regarding a Settlement Agreement Proposed by the Alaska Occupational Safety and Health Division. Manager Powers stated that this executive session was no longer necessary. He suggested that the Assembly convene into executive session regarding Strategies In Negotiating The Hospital Lease first and convene the executive session regarding the University Of Alaska Fisheries Lease Of Apartments On Near Island last. 2. Strategies In Negotiating The Hospital Lease. LEDOUX moved to convene into executive session to discuss Strategies in Negotiating the Hospital Lease, a subject matter that the immediate public knowledge of which would tend to affect adversely the finances of the Borough. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Symmons Townsend, Van Daele, Crow, LeDoux, Skinner, and Smiley. LEDOUX moved to invite the Borough Mayor, Assembly members, Manager, Finance Director, and Clerk's Office Staff into executive session. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. After the vote, Mayor Rohrer recessed the regular meeting and convened the executive session. Upon returning from the executive session, Mayor Rohrer reconvened the regular meeting and announced that no action is to be taken as a result of the executive session. 3. University Of Alaska Fisheries Lease Of Apartments On Near Island. SKINNER moved to convene into executive session to discuss University Of Alaska fisheries lease of apartments on Near Island, a subject matter that the immediate public knowledge of which would tend to affect adversely the finances of the Borough. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Townsend, Van Daele, Crow, LeDoux, Skinner, Smiley, and Symmons. SKINNER moved to invite the Borough Mayor, Assembly members, Manager, Engineering and Facilities Director, and Clerk's Office Staff into executive session. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. After the vote, Mayor Rohrer recessed the regular meeting and convened the executive session. Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 9 of 10 Upon returning from the executive session, Mayor Rohrer reconvened the regular meeting and announced that no action is to be taken as a result of the executive session and direction had been given to the manager on how to proceed with regards to a potential lease. ADJOURNMENT CROW moved to adjourn the meeting. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. The meeting was adjourned at 9:10 p.m. KODIAK-�� BOROVqH Daniel A. Rohrer, Mayor Approved on: August 3, 2017 Kodiak Island Borough Assembly Regular Meeting Minutes May 18, 2017 Page 10 of 10