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1986-12-11 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting December 11, 1986 A regular meeting of the Kodiak Island Borough Assembly was held December 11, 1986, 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. (A verbatim record is on file in the Clerk's office) The pledge of allegiance was led by Presiding Officer White. There were present: Lorne White, Presiding Alan Austerman Ann Barker Eric Blankenburg Ken Gregg Jack McFarland Wayne Stevens comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Linda Freed, Community Development Director Gaye Vaughan, Borough Clerk Shirley Berns, Deputy Borough Clerk APPROVAL OF AGENDA GREGG, seconded by BARKER WITHOUT OBJECTION, SO ORDERED CONSENT AGENDA moved to amend the agenda by adding SD#1 memo under "Committee Reports"; Garbage Collection Bid under "Bid Awards"; and Resolution 86-91-R under "New Business". At the request of Assemblyman Gregg, Ordinance No. 86-53-0 was removed from the Consent Agenda. Resolution No. 86-89-R was removed at the request of the presiding officer. These items were consider in their normal sequence at "New Business." REGULAR MEETING ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA A. RESOLUTIONS 1. -Resolution No. 86-84-R Accepting Monies From The Kodiak RESOLUTION Island Housing Authority. NO. 86-84-R 2. Resolution No. 86-85-R Requesting The U.S. Immigration RESOLUTION And Naturalization Service To Provide Testing In Kodiak. NO. 86-85-R 3. Resolution No. 86-87-R Urging Governor Cowper To Ap- RESOLUTION point Richard Rohrer To The Alaska Game Board. NO. 86-87-R B. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 86-51-0 Rezoning Lot 3B, Block 2, And Lots 1 and 2, Block 3, Miller Point Alaska Subdivision From RR1 (Rural Residential) To Business. 2. Ordinance No. 86-52-0 Amending Kodiak Island Borough Chapter 8.20 Solid Waste Collection and Disposal. C. COMMUNICATIONS TO THE ASSEMBLY 1. K.I.B. Assembly Meeting Dates for 1987. 2. K.I.B Financial Report for November, 1986. 3. K.I.B. School District Financial Report for October, 1986. ORDINANCE NO. 86-51-0 ORDINANCE NO. 86-52-0 COMMUNICATIONS TO THE ASSEMBLY �22 Kodiak Island Borough Regular Assembly Meeting December 11, 1986 D. APPROVAL OF MINUTES 1. K.I.B. Assembly Regular Meeting of November 6, 1986. E. MINUTES OF OTHER MEETINGS CONSENT AGENDA .APPROVAL OF MINUTES MINUTES OF 1. K.I.B. School District Regular Meeting of October 27, 1986. OTHER MEETINGS K.I.B. School District Regular Meeting of November 24, 1986. 2. K.I.B. Mental Health Center Advisory Board of September 29, 1986. 3. Womens Bay Comprehensive Planning'Committee Third Meet- ing of June 3, 1986. 4. K.I.B. Planning And Zoning Commission Regular Meeting of October 15, 1986. GREGG, moved to adopt consent MCFARLAND agenda as amended. VOTE ON MOTION 6. CITIZEN'S COMMENTS Unanimous voice vote Mayor Selby presented the Employee of the Month Award to Shirley Berns, Deputy Borough Clerk. Scott Arndt, chairman of Service District #1, reported on the December 8, 1986 special service district meeting where clarifi- cation was made concerning a request to relocate the Bay Circle utility lines in order to eliminate the removal of trees in front of the Busch property. He stated that the additional cost for relocating the water and sewer lines would be approximately $30,000 with an additional $6,000 for moving the KEA vault and power lines. He said these costs were discussed with Mr. Busch and Mr. Klemzak (the petitioners) and they were asked to pay for the costs themselves. Since the petitioners did not feel they could cover these costs; the service district board voted on paying the costs and the motion failed; so the board's recommen- dation was to leave the utilities as designed. Another matter of concern, he said, was the awarding of Schedule V on Project No. 85-2 (Woodland Arces Sewer and Water Project) at the November 6, 1986 assembly meeting. He reiterated the board's recommendations to the assembly regarding paying a portion of the cost of the sewage treatment plant screens and also the alterna- tive whereby the two sewer lift stations at the end of Mill Bay would be eliminated. He stated that the board had taken another vote and has requested the awarding of Schedule V be rescinded. Earl Smith, member of Service District #1, stated his opinion that the responsibility for installing Schedule V did not rest with the service district. He said it was a matter between the City of Kodiak and Rasmussen Trailer Court. He also felt that awarding Schedule V would not alleviate the service district's responsibility in the sewer treatment plant problem. A discussion followed between the assemblymembers and Mr. Smith. F Sid Omlid spoke against the adoption of Resolution 86-86-R sup- porting the development of the Kodiak Regional Aquaculture Asso- ciation. He objected to the borough assembly recommending that he spend his money to enhance the community and the fishing industry without expending some funding on their part. He ob- jected to the make up of the aquaculture association board of directors and lack of a plan or priority list to solve the problems of the fishery. He said he favored the concept of the association but he did not believe that the time was right for it. Mickey Nutall spoke in opposition to Resolution 86-86-R and con- curred with Mr. Omlid's opinions. In addition, he had major concerns about taxing himself for money that will go to the state general fund with no guarantee that the money will come back to Kodiak district. He said he was in favor of enhancement and favors paying for it but thought the borough assembly should look 2 CITIZEN'S COMMENTS I3Y Kodiak Island Borough Regular Assembly Meeting December 11, 1986 Mickey Nuttall (continued) into taxing the fisherman. He felt he would have a stronger voice on a local level. Nick Troxell, president of the Kodiak Regional Aquaculture Asso- ciation, asked the assembly to look at other associations within the state and notice that their borough supported them. He said other associations have done a good job and he was certain the local association would. Mr. Troxell answered questions of the assembly. 7. COMMITTEE REPORTS CITIZEN'S COMMENTS COMMITTEE REPORTS A. Appointments to the K.I.B. Planning and Zoning Commission. AUSTERMAN, moved to concur with Mayor's APPOINTMENTS TO seconded by MCFARLAND appointment of Tom Bendel P & Z BOARD as a borough represent- ative and Robin Heinrichs as a city representative to the P & Z Commission. VOTE ON MOTION MOTION CARRIED Unanimous voice vote B. Appointments to K.I.B. Boards and Commissions. BARKER, moved to appoint to Boards seconded by GREGG and Commissions the follow- ing listed individuals. Personnel Board Walter Sapp (2-yr) "'— Carol Smothers (2-yr) Mary McFarland (1-yr) Hospital Advisory William Hogan (3-yr) Wilton White (3-yr) Mental Health Margaret Lackman Maureen Eberhardt Parks & Recreation Susan J. Klemzak (3-yr) Lisa T. Dunn (2-yr) Maureen Butler (3-yr) Board of Equalization Kyle Taylor (3-yr) Norman Sutliff (3-yr) Building Board of Appeals (3-yr) Roger Lackman (3-yr) (3-yr) Robin Heinrichs (3-yr) Joann Hall (2-yr) Architectural Review Robin Heinrichs (3-yr) Joann Hall (3-yr) VOTE ON MOTION Ayes: Noes: MOTION CARRIED Economic Development Alvin Burch (3-yr) Kari Kornfeind (1-yr) Tim Ward (1-yr) Leon David (3-yr) Yvonne Zharoff (3-yr) Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous The president officer asked if the assembly desired to take action with regard to rescinding the award of Schedule V to Felton Construction and the Bay Circle utility relocation. AUSTERMAN, seconded by MCFARLAND moved to rescind the assembly's previous action awarding Schedule V of Project No. 85-2 to Felton Construction. APPOINTMENTS TO K.I.B. BOARDS AND COMMISSIONS 3 13s' Kodiak Island Borough Regular Assembly Meeting December 11, 1986 Assemblyman Gregg stated he would like to work out another way of funding the project rather than having it come from the service district account. A discussion on funding followed between the assembly and the mayor. VOTE ON MOTION Ayes: None Noes: Barker, Blankenburg, Gregg, McFarland, Stevens, Austerman, White MOTION FAILED Unanimous AUSTERMAN, moved to instruct the seconded by GREGG contractor to proceed with the original plans regarding the Busch property. VOTE ON MOTION COMMITTEE REPORTS (continued) Ayes: Blankenburg, Gregg, McFarland, Stevens Austerman Noes: Barker, White MOTION CARRIED 5 Ayes, 2 Noes 8. PUBLIC HEARING PUBLIC HEARING A. Resolution No. 86-88-R Establishing Fees For Licensing, RESOLUTION Impounding, Boarding, Redeeming, And Disposing Of Animals. NO. 86-88-R AUSTERMAN, seconded by GREGG moved to adopt Resolution No. 86-88-R. The presiding officer called for public testimony. Lorna Arndt spoke against Resolution 86-88-R especially the licensing fees. Horace Simmons spoke against the $75.00 fee to be levied for unneutered male dogs. The presiding officer closed the public hearing and reconvened the assembly. VOTE ON MOTION TO ADOPT Ayes: Gregg, Stevens, Austerman, Barker, Blankenburg, White Noes: McFarland MOTION CARRIED 6 Ayes, 1 No B. Ordinance No. 86-44-0 Establishing A Sewer Connection ORDINANCE Fee. NO. 86-44-0 GREGG, seconded by GREGG moved to adopt Ordinance No. 86-44-0. The presiding officer called for public testimony. Scott Arndt, chairman of Service District No.l, requested the assembly to table this ordinance. He said this ordinance only pertained to sewer and the service district would prefer an ordinance that covered both water and sewer. 4 Lk Kodiak Island Borough Regular Assembly Meeting December 11, 1986 The presiding officer closed the public hearing and reconvened the assembly. BARKER, seconded by MCFARLAND VOTE ON MOTION TO TABLE Ayes: Noes: MOTION CARRIED C. Ordinance No. 86-45-0 To Subdivision Of Land. BARKER, seconded by BLANKENBURG moved to table Ordinance No. 86-44-0. McFarland, Stevens, Austerman, Barker, Blankenburg, Gregg, White None Unanimous Establishing Various Fees Related moved to adopt Ordinance No. 86-45-0. The presiding officer called for public testimony. Scott Arndt asked to have several sections of the ordinance clarified. The presiding officer closed the public hearing and reconvened the assembly. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Stevens, Austerman, Barker, Blankenburg, Gregg, McFarland, White None Unanimous The presiding officer called for a ten minute recess. The presiding officer reconvened the public hearing. D. Ordinance No. 86-46-0 Rezoning A One -Acre Portion Of Lot 1, U.S. Survey 3471 From RR1--Rural Residential One To B--Business. (Chiniak Post Office) GREGG, seconded by STEVENS moved to adopt Ordinance No. 86-46-0. The presiding officer called for public testimony. Cliff Stone, member of the Chiniak Community Forum, noted in the comprehensive plan for Chiniak this area is shown as "business" and urged adoption of the ordinance. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous E. Ordinance No. 86-47-0 Authorizing Expenditure Of State Grant Funds By The Facilities Department To Construct A Public Safety Building In Karluk. AUSTERMAN, moved to adopt Ordinance seconded by BARKER No. 86-47-0. PUBLIC NEARING ORDINANCE NO. 86-44-0 (continued) ORDINANCE NO. 86-45-0 ORDINANCE NO. 86-46-0 ORDINANCE NO. 86-47-0 5 127 Kodiak Island Borough Regular Assembly Meeting December 11, 1986 The presiding officer called for public testimony. PUBLIC HEARING Allen Panamaroff, president of IRA Council in Karluk, said the ORDINANCE council had requested all state grants for Karluk be handled NO. 86-47-0 through the borough. The council desired a force type accounting (continued) system where as many people in the village as possible are employed. He said under this type of system, the maximum amount of building could be built while stimulating the local economy. Tom Peterson, Department of Regional and Community Affairs, said the department had some concerns that any other alternative than the ones identified in the ordinance may subject the funding to the possibilities of not securing the development of a facility and of delay and loss of funds to the community. Jerry Gudenau, local contractor, questioned the borough's capa- bilities of organizing of design, construction, and management of the funds and, also, whether this facility could be built for $100,000. He agreed as much of the work force as possible should come from the village. He felt the building should go out for competitive bid. Horace Simmons concurred with Mr. Gudenau's statements and felt the borough could best serve in a supervisory role rather than an active one. Lorna Arndt asked if the inspection and administrative fees on the Karluk facility would be charged against the funds. Jack Wick, vice mayor of Larsen Bay, pointed out there was a ten percent fee charged for design and management in the ordinance. Frank Carlson, member of city council of Larsen Bay, said the j� village had done several projects with the borough under the same Il circumstances with excellent results. Jim Fisk, F and W Construction, agreed with the local hire but he was against the borough getting into the construction business. He asked if the borough would have a bid bond and a performance bond to guarantee the project would be completed. Jay Johnston concurred with Mr. Fisk's statements. He felt there was enough contracting capability on the island to handle the project and felt the system worked best with checks and balances. George Reith opposed the ordinance and agreed with the previous statements. Scott Arndt questioned the wage scale to be paid on the project and foresaw problems if the borough did the project on a forced account basis. He said there was not a fixed price on the project and wondered what would happen if there were costs overruns. Cliff Stone thought the project should be out to competitive bid and would save money in the long run. Frank Carlson stated a grant of this size could not be put out to bid because of the cost to a contractor in getting his equipment and manpower to the location. He said the only way that Larsen Bay could get several of their projects completed was to use force accounting. The presiding officer closed the public hearing and reconvened the assembly. A discussion followed between the assemblymembers and the mayor. Assemblyman Austerman asked what would happen if the project could not be completed with the money available. Mayor Selby responded that the Kodiak Island Borough would pick up the dif- ference or else the building would not be completed. In response as to where the additional money would come from, Mayor Selby said that Karluk grant funds and other state construction monies 6 13� Kodiak Island Borough Regular Assembly Meeting December 11, 1986 have been in the bank drawing interest for some time and since this interest money was dedicated by state law to be applied towards some type of state capital projects, it could be used. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous CLERK'S NOTE: Assemblyman Austerman filed a Notice of Reconsid- eration of Ordinance No. 86-47-0 and it was placed on the agenda of the Special Assembly Meeting of December 18, 1986. F. Ordinance No. 86-48-0 Authorizing Expenditure Of Bond Funds By The Facilities Department To Construct The Additions To The Schools At Larsen Bay, Port Lions, and Old Harbor. BARKER, seconded by MCFARLAND moved to adopt Ordinance No. 86-48-0. The presiding officer called for public testimony. Charles Christensen, mayor of Larsen Bay, stressed the local hire clause in the ordinance. He said that past state funded projects in Larsen Bay have been built using local labor and have passed — all the required inspections. He used the Larsen Bay Senior and Teen Center which was completed for $345,000 as an example. He said the only outside help used was an electrical contractor. Elizabeth Nelson, Port Lions resident, spoke in favor of the ordinance. She said if the borough built the school addition that Davis Bacon wages would not have to be paid thereby allowing more money for the school building. Teresa Calhoon, Port Lions resident, spoke in favor of the ordi- nance. She said she had faith in the mayor and in the borough to do a good job. Kathy Nelson, Port Lions resident, agreed with the foregoing statements. Scott Arndt, local contractor, said he had a problem with the borough getting into the construction business when building contractors all over the state were going broke. He stated the idea behind going to bid at a fixed price was to protect every- body involved. Robbie Hoedel, caller from Port Lions, urged support of the ordi- nance. He pointed out when you have force account construction you eliminate the mobilization cost which is built into an open contract. Robert Nelson, mayor of Port Lions, asked the assembly to adopt the ordinance and noted a petition containing the names of 108 residents of Port Lions who also support it. He named three projects completed in Port Lions using forced accounting and local hire where they got more done for the money. In building the addition to the city offices, he said, the grant was for $100,000 and the addition was completed for $78,000 with $22,000 returned to the state. Scott Thompson thought the success of forced accounting was because the village was "at risk" for the money. He didn't feel that the borough would have the control to see that the funds were spend at the budget specified. PUBLIC HEARING ORDINANCE NO. 86-47-0 (continued) ORDINANCE NO. 86-48-0 7 12? Kodiak Island Borough Regular Assembly Meeting December 11, 1986 Dave Wakefield, resident of Port Lions, reiterated the reasons given by other supporters of the ordinance and said this ordi- nance was an innovative way to get the most square footage for the dollars. He urged assembly support of the ordinance. Jack Wick, Larsen Bay city council member, urged support for the ordinance and said his main concern was for local hire as there was about eighty percent unemployment in Larsen Bay. He stated when a contractor got a bid for a project, he hired only licensed workers and since no one was licensed in the village, several people might be hired to haul materials up from the beach and that was the extent of the local hire. He pointed out that with forced accounting if the ship doesn't arrive on time or the weather is bad, the people don't go to work. He said with a contractor when this occurs the workers stand around and get paid. Jim Fisk said he had a problem with the borough getting into the construction business; and he also felt it was wrong for the people in the villages to work for $15.00 an hour when the con- tractors are compelled to pay $30.00 an hour. David Easter, Larsen Bay city council member, called to say that village members were concerned about getting the maximum amount of building for the dollar. He said projects started could be completed and money saved for the taxpayer. He urged assembly support of the ordinance. Jay Johnston expressed a concern that if the borough engaged in three different construction projects three different sets of equipment and tools would be needed. He also thought that the facilities office was not properly staffed for such a major project and said additional staff would have to be hired. He j� brought up the need for liability insurance and repeated other Lconcerns expressed earlier against the ordinance. George Reith stated that the business of the borough was govern- ment and shouldn't be contracting. Frank Carlson, Larsen Bay resident, agreed with Messrs Wakefield, Easter, Wick, and Christensen statements. He used the electrical distribution system which came in under budget as an example of the use of forced accounting. Lorna Arndt stated one of the callers from Larsen Bay was a con- tractor and suggested he be allowed to bid on the project. The presiding officer closed the public hearing and reconvened the assembly. Assemblyman Stevens empathized with the villagers' concerns. He said that as a nine year resident of Barrow he had seen borough managed construction projects get out of control and he would hate to see the Kodiak Island Borough get involved in construc- tion management or the construction business with the inherent problems that has already been experienced in Barrow. Assemblymember Barker asked for clarification of the construction rschedule. She stated that one of the reasons for the East Ele- mentary addition being put out to bid was because it was a three million dollar project and the combination of these projects totaled five million and she felt the scale was a little large. Mayor Selby responded to the comment by saying it was basically a policy question to be decided by the assembly. He assured the assembly that whichever method they chose to build the additions, the staff would see the very best school was built for the dollars available. Assemblyman Gregg said he had voted for the previous ordinance because an earlier assembly had already made a commitment to let Karluk build its own public safety building. He said he felt PUBLIC HEARING ORDINANCE NO. 86-48-0 (continued) ;7 L/1 Kodiak Island Borough Regular Assembly Meeting December 11, 1986 responsible to all the voters in Kodiak for the bond money and the risk involved on such a large project as this one was a little more than he could handle. Assemblyman Austerman said the assembly had not received enough information on how the project will come together - who will be hired, how many employees will be hired, tool costs, etc. He said as an elected official he didn't feel he should blindly give his approval to spend a large sum of money without more justifi- cation. He stated with the "open endedness" of this ordinance, he could not vote "yes" to adopt it. Assemblyman McFarland agreed with some of the comments about the "open endedness" of the ordinance and said not enough information had been provided to the assembly to make a sound decision. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION FAILED None Blankenburg, Gregg, McFarland, Stevens, Austerman, Barker, White 0 Ayes, 7 Noes The presiding officer called for a recess until 10:05 p.m. The presiding officer reconvened the public hearing. G. Ordinance No. 86-49-0 Amending Kodiak Island Borough Code Section 3.16 Contract, Purchase and Sale Procedure. AUSTERMAN, seconded by BLANKENBURG moved to adopt Ordinance No. 86-49-0. The presiding officer called for public testimony. Lorna Arndt asked for clarification as to what was new in the ordinance. She felt the ordinance should read "the borough assembly" rather than the "borough mayor" may solicit bids for purchases and she thought all purchases in excess of five hundred dollars but less than ten thousand dollars should be advertised in the newspaper. Mayor Selby clarified the ordinance for Mrs. Arndt. The presiding officer closed the public hearing and reconvened the assembly. VOTE ON MOTION Ayes: Noes: MOTION CARRIED 9. MESSAGES FROM THE BOROUGH MAYOR Gregg, McFarland, Stevens, Austerman, Barker, Blankenburg, White None Unanimous Mayor Selby reminded the assembly of the special assembly meeting on December 18, 1986 with the following items on the agenda - garbage powers ordinance, sales tax ordinance, landfill close out contract, and awarding the baler water lines bid. He also pointed out that the January assembly meeting will be held on Tuesday, January 6, 1987 due to the New Years holiday. He reported on his testimony before the North Pacific Management Council on the pollock allocation. PUBLIC HEARING ORDINANCE NO. 86-48-0 (continued) ORDINANCE NO. 86-49-0 MESSAGES FROM MAYOR 9 ILI( Kodiak Island Borough December 11, 1986 Regular Assembly Meeting As a result of the vote on Ordinance 86-48-0, he requested the MESSAGES FROM authority to advertise request for proposals for architectural MAYOR services for design of the Larsen Bay, Old Harbor, and Port Lions schools. BARKER, moved to authorize the Mayor AUTHORIZE RFP FOR seconded by BLANKENBURG to advertise request for ARCHITECTURAL proposals for architectural SERVICES FOR services for design for SCHOOLS Larsen Bay, Old Harbor, and Port Lions schools. Ayes: McFarland, Stevens, Austerman, Barker, Blankenburg, Gregg, White Noes: None MOTION CARRIED Unanimous 10. OLD BUSINESS OLD BUSINESS None 11. NEW BUSINESS NEW BUSINESS A. BID AWARDS 1.) East Elementary Architectural Contract Award to EAST ELEMENTARY Selberg Associates, Inc. ARCHITECTURAL AWARD AUSTERMAN, moved to award the East seconded by BLANKENBURG Elementary Architectural Contract to Selberg and Associates in an amount NTE $175,000. VOTE ON MOTION Ayes: Stevens, Austerman, Barker, Blankenburg, Gregg, McFarland, White Noes: None MOTION CARRIED Unanimous 2.) Women's Bay Service Area Road Maintenance Contract WOMEN'S BAY Award. SERVICE AREA ROAD MAINTENAN BLANKENBURG, moved to award the Women's CONTRACT AWARD seconded by BARKER Bay Service Area Road Maintenance Contract to Brechan, Inc. VOTE ON MOTION Ayes: Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White Noes: None MOTION CARRIED Unanimous 10 jv� Kodiak Island Borough Regular Assembly Meeting December 11, 1986 3.) Service District No. 1 Road Maintenance Contract Award. BARKER, moved to award Service seconded by GREGG District #1 Road Maintenance Contract to Island Sand and Gravel. VOTE ON MOTION Ayes: Barker, Blankenburg, Gregg, McFarland, Stevens, Austerman, White Noes: None MOTION CARRIED Unanimous 4.) Municipal Facilities Snow Removal, Sanding, and Grading Contract Award. STEVENS, moved to award Municipal seconded by Facilities Snow Removal, Sanding and Grading to Island Sand and Gravel. VOTE ON MOTION Ayes: Blankenburg, Gregg, McFarland, Stevens, Austerman, Barker, White Noes: None MOTION CARRIED Unanimous 5.) Bay View Drive Sight Distance Improvement. BARKER, moved to award Bay View second by GREGG Drive Sight Distance Improvement to Brechan, Inc. in an amount NTC $9,950. VOTE ON MOTION Ayes: Gregg, McFarland, Stevens, Austerman, Barker, Blankenburg, White Noes: None MOTION CARRIED Unanimous 6.) Solid Waste Collection Contract Award BARKER, moved to award the Solid seconded by STEVENS Waste Collection Contract to Kodiak Sanitation, Inc. for the sum shown on the attached bid form. VOTE ON MOTION Ayes: Noes: MOTION CARRIED McFarland, Stevens, Austerman, Barker, Blankenburg, Gregg, White None Unanimous NEW BUSINESS SERVICE DISTRICT NO. 1 ROAD MAINTENANCE CONTRAC AWARD MUNICIPAL FACILITIES SNOW SNOW REMOVAL, SAND, & GRADING CONTRACT AWARD BAY VIEW DRIVE SIGHT DISTANCE IMPROVEMENT SOLID WASTE COLLECTION CONTRACT AWARD 11 i `i3 Kodiak Island Borough Regular Assembly Meeting December 11, 1986 B. RESOLUTIONS 1.) Resolution No. 86-86-R Supporting The Development Of The Kodiak Regional Aquaculture Association. AUSTERMAN, seconded by BLANKENBURG moved to adopt Resolution No. 86-86-R Assemblymember Barker stated she was in favor of the aquaculture association and she liked what she saw around the state, however, she doesn't like what she sees in Kodiak. She said there was a lot of money involved and there wasn't a lot of information or enough accountability built into the plan to instill confidence. She doesn't feel the aquaculture association is in good hands and until the problems are addressed she can't give it her support. Assemblymember McFarland didn't think there was enough informa- tion compiled and also felt the fishermen haven't reach a decision as to whether they wanted the association or not. He thought the assembly might be putting the horse before the cart. Assemblyman Austerman said everyone who spoke regarding this resolution said it would be a good thing if it was properly put together. AUSTERMAN, seconded by VOTE ON MOTION TO AMEND Ayes: Noes: MOTION CARRIED moved to amend by changing "the" before Kodiak Regional Aquaculture Association to "a" and delete "whose name is the Kodiak Regional Aquaculture Association" in the last paragraph. Stevens, Austerman, Gregg, White Barker, Blankenburg, McFarland, 4 Ayes, 3 Noes Assemblymember Barker pointed out that the third "Whereas" refers to the Kodiak Regional Aquaculture Association and if the resolu- tion is to be a neutral support, this wording needs to be removed also. BARKER, seconded by AUSTERMAN VOTE ON MOTION TO AMEND Ayes: Noes: MOTION CARRIED VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: MOTION CARRIED moved to remove "the KRAA" in the third WHEREAS and insert "a regional aquacultural association". Austerman, Blankenburg, Gregg, McFarland, Stevens, White Barker 6 Ayes, 1 No Austerman, Gregg, Stevens, White Barker, Blankenburg, McFarland 4 Ayes, 3 Noes NEW BUSINESS RESOLUTION NO. 86-86-R 12 /n Kodiak Island Borough Regular Assembly Meeting December 11, 1986 2.) Resolution No. 86-90-R Electing To Participate In The Retirement Incentive Program (RIP), Chapter 26, SLA 1986, And Authorizing Jerome M. Selby To Enter Into An Agreement With The Administrator Of The Public Employee's Retirement System (PERS) To Fund The Cost Of Participation In The RIP. MCFARLAND, seconded by STEVENS moved to adopt Resolution 86-90-R. At the request of the presiding officer, Mayor Selby explained the cost saving benefits to the borough if all five employees who are eligible to retire take advantage of the program. Assemblyman Austerman said he had opposed the RIP since the state started it. He felt that when the top posts were eliminated, everybody took a step up to fill those positions and the only person replaced was the lowest person on the totem pole. He didn't think the savings would be enough to warrant getting involved. VOTE ON MOTION TO ADOPT Ayes: Barker, McFarland, Stevens Noes: Blankenburg, Gregg, Austerman, White MOTION FAILED 3 Ayes, 4 Noes 3.) Resolution No. 86-91-R Urging Federal Funding for the Design and Construction Of A Permanent Breakwater At St. Herman (Dog Bay) Harbor. AUSTERMAN, seconded by STEVENS VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED moved to adopt Resolution No. 86-91-R. Blankenburg, Gregg, McFarland, Stevens, Austerman, Barker, White None Unanimous 4.) Resolution No. 86-89-R Authorizing Inter -fund Borrowing For The Bay View Road Service Area. BARKER, seconded by AUSTERMAN moved to adopt Resolution No. 86-89-R. In response to where the money would come from, Mayor Selby said it would come out of the general fund and be recovered on July 1, 1987. Mr. White reminded the assembly that this had been done for the Three Sisters Road area and he understood that it had never been repaid. The mayor thought it had been repaid but would double check the matter. Assemblyman Gregg said he would like to do this on a loan basis rather than a grant. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Gregg, McFarland, Stevens, Austerman, Barker, Blankenburg, White None Unanimous NEW BUSINESS RESOLUTION NO. 86-90-R RESOLUTION NO. 86-91-R RESOLUTION NO. 86-89-R 13 I Y:` Kodiak Island Borough Regular Assembly Meeting December 11, 1986 C. ORDINANCES FOR INTRODUCTION 1.) Ordinance No. 86-53-0 Providing For A Special Election And Placing The Question Of The Adoption Of A Sales Tax On The Ballot. GREGG, moved to adopt Ordinance No. seconded by STEVENS 86-53-0 at first reading. GREGG, moved to amend Ordinance No. seconded by AUSTERMAN 86-53-0, Section 2 as follows: Section 2. The following proposition shall be submitted to the qualified voters of the Kodiak Island Borough: It is the intent of the Kodiak Island Borough Assembly and Mayor that the Kodiak Island Borough adopt sales tax powers as follows: The sales tax amount shall be one percent (18) borough wide. Within the city limits of any city within the borough the tax will be in addition to any sales tax imposed by that city. The Kodiak Island Borough Assembly is empowered to enact such ordinances as necessary to implement and administer the collection of the tax, with the restric- tion that the tax amount may not be increased without further voter approval. Sales tax ordinances and collection policies shall be coordinated with the City of Kodiak so that no unnec- essary collection or reporting hardship is placed on local businesses. Shall the Kodiak Island Borough adopt sales tax powers and levy a sales tax equal to one percent (le) of sales and services provided in the Borough? VOTE ON MOTION TO AMEND Ayes: Noes: MOTION TO AMEND CARRIED Yes No McFarland, Stevens, Austerman, Barker, Blankenburg, Gregg, White None Unanimous At the request of the presiding officer, Mayor Selby explained the sales tax ordinance came up as a result of a telephone poll which was conducted in the community. He said with the revenue short fall expected for next year there will be a need to bring in more taxes of some sort; and in the telephone poll seventy- seven percent of the people favored a one percent sales tax in- stead of a two mill property tax levy increase. Assemblyman Austerman said he was not in favor of the ordinance. He said it was an assumption that the borough was going to need extra funds and he wasn't convinced that the borough and school budgets couldn't be tighten up more. He asked if if was possible to adopt the powers without implementing the collection to which Mayor Selby responded "yes." ORDINANCES FOR INTRODUCTION ORDINANCE NO. 66-53-0 14 Kodiak Island Borough Regular Assembly Meeting December 11, 1986 VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: MOTION CARRIED D. OTHER ITEMS Stevens, Barker, Blankenburg, Gregg, McFarland, White Austerman 6 Ayes, 1 No 1.) Approval of Kodiak Island Hospital Budget. BARKER, seconded by BLANKENBURG VOTE ON MOTION Ayes: Noes: MOTION CARRIED moved to approve the Kodiak Island Hospital Budget. Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous 2.) Agreement With Randy Foltz For Drafting Services. seconded by GREGG moved to enter into an agreement with Randy Foltz for drafting services. '—' Assemblymember Barker questioned the need for Mr. Foltz' services since the way the school additions were being constructed had been changed. Mayor Selby explained his services were needed to finish up the design drawings for the Karluk project. Assemblyman Blankenburg asked about payments made in Article 4 of the agreement to which Mayor Selby explained the payments were an advance against wages earned. Mayor Selby responded to other questions from the assembly. VOTE ON MOTION Ayes: Noes: MOTION CARRIED 12. CITIZENS' COMMENTS Barker, Blankenburg, Gregg, McFarland, Stevens, White Austerman 6 Ayes, 1 No Scott Arndt asked for an explanation for the four pieces of equipment owned by the borough and if their purchase went out to bid. At the request of the presiding officer, Mayor Selby explained the equipment was purchased to be used at the baling facility and it went out to bid in Anchorage through Frontier Construction as a "change order." The equipment was shipped down on a barge in route to Akhiok. The equipment was listed in the specifications of the contract by the engineers with a cost estimate of $280,000 and this equipment cost $106,000. Mr. Arndt felt that the only piece of equipment that would work well at the baler facility was the bobcat and thought the other pieces were under size for the job. NEW BUSINESS ORDINANCE NO. 86-53-0 (continued) OTHER ITEMS APPROVAL OF HOSPITAL BUDGET AGREEMENT WITH RANDY FOLTZ FOR DRAFTING SERVICES CITIZEN'S COMMENTS 15 Kodiak Island Borough December 11, 1986 Regular Assembly Meeting Dennis Murray commented on the approval of the hospital budget CITIZENS' COMMENTS and asked for clarification on one item. He said he appreciated the hospital operating in the black. Also, he appreciated the assembly's vote on the retirement question because he thought the state needed to reduce the work force whereas that was not the case with the borough. He said the rural school construction ordinance was a complex issue and he didn't envy the assembly trying to make a good decision. He thought the borough would do well with the selection of Selberg and Associates to the architectural work at East Elementary as Selberg served as the architect on the senior citizens building and did a good job. Lorna Arndt commented on the sales tax ordinance and didn't think people would want a one percent tax increase. Regarding the garbage collection ordinance, she asked if the borough was going to give property owners thirty days notice before the billing starts because some landlords will need time to pass the cost along to their tenants. She questioned the purchase of the equipment for the baler facility. AUSTERMAN, moved to extend the meeting seconded by BLANKENBURG until midnight. MOTION CARRIED Unanimous Voice Vote 13. ASSEMBLYMEN'S COMMENTS ASSEMBLYMEN'S COMMENTS Assemblyman Blankenburg felt the community was going in the right direction regarding fisheries and local allocations. Assemblyman Austerman thought the assembly should follow through with a letter in support of the Chiniak Community Forum's letters to the state regarding the maintenance of the highway. r� Assemblyman Gregg said it was called to his attention that borough past due tax bills said nothing of penalties and still had an eight percent per year or two-thirds of a percent per month interest. He gave an example of payment being made calculated on what was on the tax bill and then received a bill for penalties. He said what was on the tax bill should take precedence over what is on the ordinance. He would like a legal opinion on the matter and a report from the finance department on the number of persons in that situation and cost to the borough to go by the tax bills. Mayor Selby said there was no question that the ordinance took precedence and the decision to use the present tax bill was in order to prevent throwing out 30,000 preprinted tax bills. He said a sticker could be used next year to cover the top of the printing. Assemblyman Stevens felt that rather than purchasing stickers, the borough computer could be programmed to add descriptive working on the billing about the change in interest rate and penalties. Assemblyman McFarland said he appreciated the public input into work sessions and assembly meetings. He wanted the people from the villages who came to voice their opinions to know they l haven't gone unheard. He said the assembly would strive to find an equitable solution. Assemblyman White noted it had been decided at a work session that the borough would not own the equipment purchased for the baler. He reported on the lobbing seminar that he attended in Fairbanks and said it was very rich and worthwhile. He discussed the Selief Lane Task Force and said Assemblyman Stevens had agreed to chair the task force. The task force was to be com- prised of individuals from the city and borough to assist in solving the water drainage problem in the area, he noted. 16 /Li Kodiak Island Borough Regular Assembly Meeting December 11, 1986 BARKER, seconded by STEVENS MOTION CARRIED moved to appoint to the proposed Selief Lane Task Force: Wayne Stevens, Alan Austerman, ADF&G Habitat Representative, Jack Freise, Jim Ramaglia, Bud Cassidy, Dave Crowe, Herman Beukers to serve until June, 1987 Unanimous Assemblyman White queried the mayor about FY88 budget development. MCFARLAND, seconded by AUSTERMAN MOTION CARRIED moved to extend meeting past midnight. Unanimous Assemblyman White wondered about pulling back the industrial land that was on the last land sale to look at the possibility of rezoning it. He also said it was his recollection that the school projects were going to be done one at a time to see how they came together. When the three schools were presented all together, it gave him a different choice, he stated. He said that he would like to tackle one project using forced accounting and local hire just to see how it worked. He asked the mayor if there would be a big cost savings to the borough if all three school projects were handled at once to which the mayor replied there would be considerable cost savings if the projects were contracted out. He said a contractor would probably bid on all three projects and move the crews through the villages like a wave action. The most cost effective method would be to bid all three projects as one contract, however, he said he preferred to bid them as three separate projects. Assemblyman White reminded the audience that the January assembly meeting will be held on Tuesday, January 6, 1987. 14. ADJOURNMENT There being no further business to come before the assembly, the meeting adjourned at 12:09 a.m. A, L ,d P s ding Officer ATTEST: V-& C c- B roug rk ASSEMBLYMEN'S COMMENTS APPOINTMENT OF SELIEF LANE TASK FORCE 0