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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 i SO 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. `' �i j 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 3 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 I r'r