1986-12-18 Regular MeetingKODLAK ISLAND BOROUGH
Special Assembly Meeting
December 18, 1986
A regular meeting of the Kodiak Island Borough Assembly was held
December 18, 1986, 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. (A verbatim record is on file in the Clerk's
office)
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
Gaye Vaughan, Borough Clerk
ITEMS OF BUSINESS
A. PUBLIC HEARING
1. Ordinance No. 86-52-0 Amending Kodiak Island Borough
Chapter 8.20 Solid Waste Collection and Disposal.
AUSTERMAN,
seconded by BARKER
moved to adopt Ordinance
No. 86-52-0.
The presiding officer called for public testimony.
Scott Arndt requested an explanation of the changes in the ordi-
nance to which Mayor Selby responded. Mr. Arndt opposed the
"mandatory" portion of the ordinance outside the city limits. He
asked about provisions for individuals with legitimate claims for
exception to solid waste collection and thought there should be
some flexibility built into the ordinance to cover them.
The presiding officer closed the public hearing and reconvened
the assembly.
MCFARLAND,
seconded by
WITHOUT OBJECTION, SO ORDERED
BLANKENBURG,
seconded by GREGG
moved to amend Section
8.20.080(E) by changing
the word "level" to
"accessible".
moved to amend Section
8.20.030 by adding "or it is
determined that duplicate
service would be provided."
Assemblyman Austerman said the term "duplicate service" should be
defined because if residential garbage collection was being
discussed it would be different than garbage collection at the
business level. He gave the example of paying for garbage
collection service at his residence and also at his place of
business. He said garbage was generated at both places and dis-
posal of this garbage should be paid for at both places.
Mayor Selby explained the whole concept of the current billing
structure was based on a flat unit cost based on the number of
residences and/or apartment units in existence in town. He said
this amendment would change the basic economics of the premise of
the rate structure. He said if some individuals were granted
exemptions, the other participants would pay more for their service.
SPECIAL MEETING
ROLL CALL
ITEMS OF BUSINESS
ORDINANCE
NO. 86-52-0
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Kodiak Island Borough December 18, 1986
Special Assembly Meeting
A discussion followed between the assemblymembers and Mayor Selby. ORDINANCE
NO. 86-52-0
VOTE ON MOTION TO AMEND (continued)
Ayes:
Noes:
MOTION FAILED
VOTE ON MOTION TO ADOPT
Ayes:
Noes:
MOTION CARRIED
Blankenburg
Gregg, McFarland, Stevens,
Austerman, Barker, White
1 Aye, 6 Noes
Gregg, McFarland, Stevens,
Austerman, Barker,
Blankenburg, White
None
Unanimous
2. Ordinance No. 86-53-0 Providing For A Special Election ORDINANCE
And Placing The Question Of The Adoption Of A Sales Tax NO. 86-53-0
On The Ballot.
AUSTERMAN,
seconded by BLANKENBURG
moved to adopt Ordinance
No. 86-53-0.
The presiding officer called for public testimony.
Scott Arndt said a five hundred dollar sales tax exemption limit
was not spelled out in the ordinance. He thought if the question
of sales tax was going to be put before the voters, the ordinance
needed to spell out exactly was what happening rather than leav-
ing it a unknown issue. He objected to the fifth "WHEREAS" con-
cerning imposing a portion of the tax burden on tourists because
Kodiak does not have a tourist economy. He said this was an
alternative tax and the borough was looking at tax choices.
Wally Johnson thought this ordinance might be a little premature
if it was being imposed on the basis of a decline in state reve-
nue. He said he wasn't sure there would be a substantial reduc-
tion and the borough should wait to see the amount of the reduc-
tion before adopting this ordinance. He criticized the recent
survey of Kodiak Island residents and the result showing a pref-
erence of a one percent sales tax over a mil increase on property
tax. Also, he suggested the borough designate the tax revenues
for the schools just as the city has designated part of its sales
tax for harbors. He thought there should be a five year cap put
on the ordinance and if the voters wanted to continue it, they
could approve it again.
Dave Wakefield, resident of Port Lions, called to voice opposi-
tion to the ordinance. He wondered if he would be paying a one
percent sales tax on fuel, telephone service, television, etc.
which were purchased in Port Lions. He didn't think the election
should be a mail type election and felt the sales tax would cause
a lot on animosity amongst the voters.
Roy Deebel, Finance Director for the city of Kodiak, speaking for
the Kodiak City Council gave a few suggestions for changing the
ordinance. He suggested changing the third paragraph under Section
2 to read "shall be coordinated with the cities and villages
within the Kodiak Island Borough" and on the ballot question,
second line after "sales" - add rents, and services.
Joe Perrozzi, Kodiak City Councilman, warned the assembly of some
of the pitfalls they might encounter in implementing the tax. He
agreed with those who had said that tourists would pay less of
the tax than the ordinance implied.
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Kodiak Island Borough December 18, 1986
Special Assembly Meeting
The presiding officer closed the public hearing and reconvened ORDINANCE
the assembly. NO. 86-53-0
(continued)
Assemblyman Stevens summarized the contents of three letters from
local businessmen regarding the ordinance and suggesting a sunset
clause, time limit, and a cap of five hundred dollars on the tax.
GREGG, moved to amend Ordinance
seconded by AUSTERMAN No. 86-53-0 as follows:
In the fourth WHEREAS, amend to read "finance education and school
bond debt retirement in a way that spreads the tax burden across
the entire populace"; Delete the fifth WHEREAS; and change the
fourth paragraph under Section 2 to read " shall be coordinated
with the cities and villages".
Assemblyman Stevens stated he saw the need to make changes to the
ordinance and suggested the assembly table it until the January
meeting.
Assemblyman Gregg agreed that it should be tabled but said that
his amendments should be incorporated into the ordinance first.
He also, would like to table the ordinance until April or May
when the state revenue picture would be clearer.
Mayor Selby commented that if the proposition was going to be put
on the ballot on February 17th, the enabling ordinance should be
up for first reading at the February 5th assembly meeting so the
voters would know what it contained prior to the election. Also,
he said a FY88 budget could not be written until they knew what
their revenue sources would be.
Assemblyman McFarland agreed with earlier testimony with regard
to a time limit, the limits of five hundred dollars, the amount
of money to be generated by the one percent sales tax, and
earmarking the ordinance for a specific concern.
VOTE ON MOTION TO AMEND
Ayes:
Noes:
MOTION CARRIED
Stevens, Austerman, Barker,
Blankenburg, Gregg,
McFarland, White
None
Unanimous
In response to Assemblymember Barker's request, the borough clerk
explained the benefits of an election by mail.
BARKER,
seconded by MCFARLAND
VOTE ON MOTION TO TABLE
Ayes:
Noes:
MOTION CARRIED
moved to table Ordinance
No. 86-53-0.
Stevens, Austerman, Barker,
Blankenburg, Gregg,
McFarland, White
None
Unanimous
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Kodiak Island Borough
Special Assembly Meeting
December 18, 1986
B. OTHER ITEMS
1. Bid Award - Baler Facility Water Line
AUSTERMAN, moved to award the Baler
seconded by GREGG Facility Water Line to
Anderson Construction in an
amount NTE $142,430.
BARKER,
seconded by AUSTERMAN
WITHOUT OBJECTION, SO ORDERED
VOTE ON MOTION TO AWARD
Ayes:
Noes:
moved to amend the bid award
to include the wording "the
irregularity be waived."
Austerman, Barker,
Blankenburg, Gregg,
McFarland, Stevens, White
None
MOTION CARRIED Unanimous
2. Bid Award - Landfill Close Out
MCFARLAND,
seconded by AUSTERMAN
moved to award to Frontier
Construction - Schedule
A,B,C, and E in an amount
NTE $257,000.
'— Mayor Selby explained the substantial difference in cost between
the engineer's estimate (Schedule B - $311,300 and Schedule D -
$456,000) and Frontier Construction low bid (Schedule B - $178,000
and Schedule D - $311,000) at the request of Assemblyman
Blankenburg. He said the difference had been pointed out to
Frontier Construction officials and since the company was already
mobilized on the island, the mobilization cost would be eliminated
and they felt they could do the project for the figures given.
VOTE ON MOTION TO AWARD
Ayes:
Noes:
MOTION CARRIED
Barker, Blankenburg, Gregg,
McFarland, Stevens,
Austerman, White
None
Unanimous
3. Notice of Intent to Reconsider Ordinance No. 86-47-0
Authorizing Expenditure Of State Grant Funds By The
Facilities Department To Construct A Public Safety
Building In Karluk.
AUSTERMAN,
seconded by GREGG
VOTE ON MOTION TO RECONSIDER
Ayes:
Noes:
MOTION CARRIED
AUSTERMAN,
seconded by STEVENS
moved to reconsider
Ordinance No. 86-47-0.
Barker, Blankenburg, Gregg,
McFarland, Stevens,
Austerman, White
None
Unanimous
moved to amend Ordinance
No. 86-47-0 to change the
"BE IT FURTHER ORDAINED"
paragraph to read as follows:
OTHER ITEMS
BALER FACILITY
WATER LINE BID
AWARD
LANDFILL CLOSE OUT
BID AWARD
ORDINANCE
NO. 86-47-0
4
Kodiak Island Borough
Special Assembly Meeting
December 18, 1986
BE IT FURTHER ORDAINED THAT, the mayor is authorized to
make the purchases required to complete the work described herein,
after securing at least two local Kodiak Island quotations where
available, for each purchase. A financial statement of this
project will be provided the Kodiak Island Borough Assembly at
least once per month. Any and all expenditures over the $100,000
state grant will have to be approved by the Kodiak Island Borough
Assembly.
Assemblyman Austerman stated in retrospect that he felt uncom-
fortable passing the ordinance because there were no controls
over the expenditures. In view of the discussion that the
borough would be liable to complete the building if the $100,000
state grant money wasn't enough money, he said, there would be
more control by adding this amendment.
VOTE ON MOTION TO AMEND
Ayes: Blankenburg, Gregg,
McFarland, Stevens,
Austerman, Barker, White
Noes: None
MOTION CARRIED Unanimous
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes: Gregg, McFarland, Stevens,
Austerman, Barker,
Blankenburg, White
Noes: None
MOTION CARRIED Unanimous
4. Tree Clearance
Assemblyman White said several years ago he made a motion from
the floor that when trees had to be cleared on borough projects,
one of the options would be that wood users have a chance at the
wood for household heat. Now, he said, there was some
disagreement with that policy within the engineering staff and
land management staff as to the disposal of the trees. The staff
felt that the money received for the trees should go back into
the project or that the trees could be better used for all the
public. He would like to clear up the matter so the staff would
know the assembly's feelings.
BLANKENBURG, moved that trees which are
seconded by STEVENS removed from borough
projects be offered to
the public as first
alternative.
Assemblyman Gregg said trees were a natural resource and he felt
burning was not the best use of the resource. He thought the
trees would have a more lasting effect if converted to lumber.
Assemblyman Austerman stated that his home was heated entirely
with wood thereby saving oil.
Assemblyman Blankenburg's concern was that on a project when
trees were cut, they were usually replaced with a building and
the project would be held up waiting for someone to come with a
chain saw to clear them away. He thought there would be addi-
tional cost involved in paying someone to move the trees out of
the way of the contractor and the time factor was important.
ORDINANCE
NO. 86-47-0
(continued)
TREE CLEARANCE
5
Kodiak Island Borough
Special Assembly Meeting
December 18, 1986
In response to questions, Mayor Selby said that trees were made TREE CLEARANCE
available to the public about a year ago at the dump site. In (continued)
making all project trees available to the public, he said, costs
would be added to contracts in two ways. First of all, the trees
are now used as a resource and sold to pay for the cost of their
removal and this removal cost would have to added to the
contract. Also, land would have to be rented to store the cut
trees to get them out of the way of the contractor. He said some
trees have been turned into lumber and used to build the small
shelters in borough parks which was a cost saving to the borough.
Scott Arndt, Service District No. 1 chairman, concurred with
Mayor Selby's statements regarding the method of disposal of
borough project trees. He said he understood Assemblyman White's
concern but stated it was not practical oftentimes especially on
water and sewer projects where electric wires strung in the trees
were involved. He said there a liability issue to be considered
also.
Tom Miller thought it might be more equitable to all citizens of
the borough to have the trees turned into lumber and have the
lumber offset the cost of the project.
VOTE ON MOTION
Ayes: Austerman, White
Noes: McFarland, Stevens, Barker,
Blankenburg, Gregg
MOTION FAILED 2 Ayes, 5 Noes
There being no further business to come before the assembly, the ADJOURNMENT
meeting adjourned at 9:02 p.m.
C, G�
P s'ding Officer
ATTEST:
B rough 1
0
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