2013-05-06 Regular Meeting Minutes - Includes Certification of Board of Equalization Actions, May 6 and May 14, 2013KODIAK ISLAND BOROUGH
Citizens Board of Equalization Meeting
May 6, 2013
A regular meeting of the Kodiak Island Borough Citizens Board of Equalization was held on May 6,
2013, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The
meeting was called to order at 7:30 p.m.
Present were Mark Anderson, Cheryl McNeil, Carrie Morton, John Parker, and Dan Rohrer. Staff
members present were Borough Assessor Bill Roberts, Borough Clerk Nova Javier, and Assistant
Clerk Jessica Kilborn. Board members and Assessor Roberts were sworn in by Clerk Javier.
ROHRER moved to excuse Board member Mahoney who was absent due to personal leave.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
NOMINATIONS
A. Chairperson of the Board
ANDERSON moved to nominate Carrie Morton as chairperson.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
B. Vice -Chairperson of the Board
PARKER moved to nominate Mark Anderson as vice -chairperson.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA
MORTON moved to approve the agenda of May 6, 2013.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
A. Special Meeting Minutes of September 17, 2012.
PARKER moved to approve the special meeting minutes of September 17, 2012, as submitted.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 1
ITEMS OF BUSINESS
Hearings Scheduled
Docket #2013-01, Appeal No. 2013-04, Appellant: A-1 Timber Consultants, Inc.; Authorized
Representative: Tom Loushin
Assessor Roberts reported this item was no longer being appealed. The original appeal from Tom
Loushin of A-1 Timber Consultants asserted that logging equipment is typically depreciated on a 6-
10 year schedule due to its heavy use. In the time between the appeal and the board meeting
Assessing Staff completed extensive research and found that typically, for assessment purposes,
logging equipment is depreciated on a 6-10 year schedule. Marshall Valuation Service, a national
cost index for equipment and buildings uses a seven year schedule. The logging equipment was
revalued using the Marshall Valuation seven-year schedule and a new assessed value for A-1
Timber was determined at $2,241,100, for logging and heavy equipment. The revised valuation was
acceptable to Mr. Loushin.
The Board accepted the final valuation at $2,241,100.
Docket #2013-03, Appeal No. 2013-06A (Senior Tax Exemption Eligibility), Appellant: Gerald
Markham
The matter of Mr. Markham's eligibility for senior tax exemption was brought before the Board.
Under Alaska Administrative Code section 3 AAC 135.110, which that the decision by the Assessor
concerning a senior exception can be appealed to the Board of Equalization. The Board discussed
the senior tax exemption eligibility of Mr. Markham. In his testimony Assessor Roberts stated that
he had denied Mr. Markham's exemption as he did not meet the criteria of being in the State of
Alaska for the required 185 days and he had not presented sufficient data in his letters to determine
that his absences met the requirements as contained in AS 43.23.008. Mr. Roberts indicated that
he had notified Mr. Markham that he needed more information to support the claim that the
absences meet the code criteria. The Assessor recommended that the board remand the appeal
back to him awaiting further information from Mr. Markham on this matter. In their discussion the
board noted that according to Mr. Markham's own account he did not meet the 185 day residency
requirement and agreed that his letters did not support his assertion that the absences met the
required codes for acceptable absences. They further noted that Mr. Markham, in an email dated
May 6, 2013, indicated he was not going to provide any further documentation concerning his
absences.
PARKER moved to uphold the decision of the Assessor denying the senior tax exemption of Mr.
Markham.
VOICE VOTE ON MOTION CARRIED FOUR TO ONE: Anderson, McNeil, Morton, and Parker
(Ayes); Rohrer (No).
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 2
FINDINGS OF FACT:
The Board upheld the decision of the Assessor denying Mr. Markham's senior tax eligibility for the
reasons that:
• the Appellant did not provide compelling information proving eligibility of senior tax
exemption,
• the Assessor requested additional information in support of the senior tax exemption and in
a May 6`h email the Appellant refused to provide such documentation, and
• the number of days the Appellant actually resided in the State of Alaska during 2012 were
insufficient for eligibility, which was plainly stated in Mr. Markham's letters to the board.
CONCURRENCE WITH FINDINGS/CONCLUSIONS OF LAW: In Favor — Unanimous; Opposed -
None.
Chairperson Morton ended the appeal hearing by stating the following:
"According to Appellate Rule 602, the Appellant or the Assessor has the right of appeal to the
Superior Court of the State of Alaska from our final decision. Should you wish to exercise your right
of appeal, you must do so by notifying the Borough attorney and initiating the process within 30
days from the date of our written decision. Failure to do so will forever bar you from any appeal of
this decision."
Docket #2013-03, Appeal No. 2013-06A, Appellant: Gerald Markham; Authorized
Representative: Kevin Arndt
ROHRER moved to allow Mr. Kevin Arndt to represent Mr. Markham as was requested via an email
on May 6, 2013.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
Mr. Kevin Arndt was sworn in by Clerk Javier.
Mr. Arndt stated that the only issues being contested were some inaccuracies with the property
description as contained within the assessment records. He noted that there was no woodstove in
this home, the chain link fenced being assessed to the appellant was actually owned by the City of
Kodiak and should not be assessed to the property owner, and the third floor square footage was
wrong in the records as the steep sloping roof greatly reduced the useable area on this level. When
asked by Mr. Parker if there still was a contention about the land value for this property, Mr. Arndt
said no there was not.
The Assessor indicated that he was willing to adjust the valuation based on the testimony of Mr.
Arndt.
ROHRER moved to recess the meeting to allow the Assessor to recalculate the assessment
valuation based on evidence provided by Mr. Arndt.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 3
Chairperson Morton recessed the meeting at 8:27 p.m.; the meeting was reconvened at 8:34 p.m.
PARKER moved to reduce the assessment valuation to $218,500, based on the recalculation of the
Assessor.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Morton, Parker, Rohrer, McNeil, and
Anderson.
FINDINGS OF FACT:
The Board found that the appellant proved the assessment was excessive based upon:
• a woodstove was calculated into the value of the property which was inoperable,
• chain-link fencing existed on top of a City owned wall which the Board agreed existed on
City property,
• the floor space, specifically on the third story of the residence, was inaccurately represented
at 768 sq. ft., when the proper measurement was 372 sq. ft., and
• the Appellant's authorized representative stated the land valuation was no longer a
contention.
CONCURRENCE WITH FINDINGS/CONCLUSIONS OF LAW: In Favor — Unanimous; Opposed -
None.
Chairperson Morton ended the appeal hearing by stating the following:
"According to Appellate Rule 602, the Appellant or the Assessor has the right of appeal to the
Superior Court of the State of Alaska from our final decision. Should you wish to exercise your right
of appeal, you must do so by notifying the Borough attorney and initiating the process within 30
days from the date of our written decision. Failure to do so will forever bar you from any appeal of
this decision."
Docket #2013-04, Appeal No. 2013-06B, Appellant: Gerald Markham; Authorized
Representative: Kevin Arndt
Mr. Kevin Arndt was sworn in by Clerk Javier.
Mr. Arndt testified that conditions of the property located at 206 Kashevaroff Street were in
contradiction to those that were provided on the property assessment, namely that the attic space
would not be considered livable space due to the lack of a heat source and proper access to the
area. Mr. Arndt confirmed that the square footage of the area was comparable to that provided on
the property assessment. Also, as noted in Mr. Markham's letters, there is no heat source in the
home. The home is heated by underground pipes from the boiler at 211 Mill Bay Road, also owned
by Mr. Markham.
The Assessor agreed that the original valuation could be considered excessive due to the testimony
of Mr. Arndt. Assessor Roberts offered to recalculate the assessed value by valuing the attic areas
as storage area only and making a functional obsolescence adjust for lack of on-site heat source
based on a cost to cure by installing a small space heater (ToyoTM" or Monitor TM oil stove).
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 4
ROHRER moved to recess the meeting to allow the Assessor to recalculate the assessment
valuation based on the evidence provided by Mr. Arndt.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
Chairperson Morton recessed the meeting at 9 p.m.; the meeting was reconvened at 9:10 p.m.
Assessor Roberts provided a recalculated assessment taking into consideration that the attic was
not a livable space, and an adjustment was included for the lack of an on-site heat source for the
home. The final assessment was adjusted to $66,100.
The Board discussed the value asked the Assessor to perform an on-site visit to determine if the
assessment valuation should be decreased based on the testimony of Mr. Arndt as Mr. Arndt
indicated he had not actually inspected the attic of this property.
PARKER moved to direct the Assessor to inspect the properties and report back to the Board on
May 7 at 5:15 p.m.
MCNEIL moved to amend the motion to reconvene the meeting "as soon as Assessor Roberts was
allowed access to the properties to perform an on-site visit but not to exceed seven days".
VOICE VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY.
VOICE VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY.
Docket #2013-05, Appeal No. 2013-06C, Appellant: Gerald Markham; Authorized
Representative: Kevin Arndt
Mr. Arndt testified that conditions of the property located at 215 Mill Bay Road were in contradiction
to those that were provided on the property assessment. He noted that the property did not have a
woodstove as indicated in the record and that it also lacked an on-site heat system, being heated
similar to the property located at 206 Kashevaroff. The Board concurred that the Assessor should
perform an on-site visit of the property to determine if the assessment valuation should be
decreased based on the testimony of Mr. Arndt.
ROHRER moved to postpone Docket #2013-05, Appeal No. 2013-06C to the next meeting of the
Board.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
GENERAL COMMENTS AND QUESTIONS
None.
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 5
ADJOURNMENT
MCNEIL moved to adjourn the meeting.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
The meeting adjourned at 9:20 p.m.
ATTEST:
fam. Qaal-�
Nova M. Javier, MMC, rough Clerk
Chairperson
Approved: May 16, 2013
Clerk's note:
Per KIBC 3.35.050 (E1)
The board of equalization summary certification will constitute the board minutes.
Per KIBC 3.35.050 (E9) Certification.
The board shall certify its actions to the Assessor within seven days following its adjournment.
Kodiak Island Borough Board of Equalization Minutes
May 6, 2013 Page 6