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1987-01-06 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting January 6, 1987 A regular meeting of the Kodiak Island Borough Assembly was held January 6, 1987, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 6:33 p.m. (A verbatim record is on file in the Clerk's office) The invocation was given by the Reverend Mark Houglum, St Paul's Lutheran Church, followed by the Pledge of Allegiance. There were present: Lorne White, Presiding Eric Blankenburg Jack McFarland Absent: Ann Barker (Excused) Alan Austerman Ken Gregg 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 - STEVENS, seconded by GREGG WITHOUT OBJECTION, SO ORDERED GREGG, seconded by MCFARLAND WITHOUT OBJECTION, SO ORDERED CONSENT AGENDA A. RESOLUTIONS moved to amend the agenda by adding Appointment to Monashka Bay Service Area Advisory Board to "Committee Reports"; and Resolutions 87-06-R and 87-07-R under "New Business." moved to approve the agenda as amended. 1. Resolution No. 87-01-R Proposing The Creation In The Governor's Office Of A Fisheries Development Policy Coordinator Position. 2. Resolution No. 87-02-R Declaring Certain Borough Land Surplus For Municipal Purposes And Authorizing The Exchange Of Lands For The Larsen Bay School Classroom Addition. B. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 87-01-0 Rezoning Portions Of U.S. Surveys 3467, 3468 and 3469, Comprising All Lands Surrounding The Kodiak Municipal Airport That Are Currently Zoned PL--Public Use Lands. 2. Ordinance No. 87-02-0 Amending Ordinance No 86-21-0, Levying Taxes On All Taxable Real And Personal Property Within The Borough For The Expenses And Liabilities Of The Borough For The Fiscal Year Commencing On The First Day Of July, 1986, And Ending On the Thirtieth Day Of June, 1987. REGULAR MEETING ROLL CALL APPROVAL OF AGENDA CONSENT AGENDA RESOLUTION NO. 87-01-R RESOLUTION NO. 87-02-R ORDINANCE NO. 87-01-0 ORDINANCE NO. 87-02-0 3. Ordinance No. 87-03-0 Delineating The Period Of Time That Appropriations Are Available For Encumbrance And Eventual Expenditures. C. COMMUNICATIONS TO THE ASSEMBLY 1. K.I.B. Annual Audit Report D. APPROVAL OF MINUTES 1. K.I.B. Assembly Regular Meeting of December 11, 1986 2. K.I.B. Assembly Special Meeting of December 18, 1986 E. MINUTES OF OTHER MEETINGS 1. K.I.B. School District Regular Meeting of December 8, 1986 2. K.I.B. Planning and Zoning Commission Regular Meeting of November 19, 1986 MCFARLAND, seconded by STEVENS WITHOUT OBJECTION, SO ORDERED CITIZEN'S COMMENTS moved to approve consent agenda. Mayor Selby presented the Employee of the Month Award to Dan Millard, Construction Inspector in the Engineering Department. Steve Rennell stated he was representing the Planning and Zoning Commission and would be available to answer questions. Steve Rennell speaking as the owner of a neutered male dog said that he approved of the animal control ordinance and the fees schedule and hoped it was a success. A. Appointment to South Central Health Planning and Devel- opment, Inc. Board of Directors. MCFARLAND, seconded by VOTE ON MOTION MOTION CARRIED moved to appoint Linda Williams to the South Central Health Planning and Development, Inc. Board of Directors. Unanimous voice vote B. Appointment to Monashka Bay Service Area Advisory Board BLANKENBURG, seconded by AUSTERMAN VOTE ON MOTION MOTION CARRIED moved to appoint William Swearingin to the Monashka Bay Service Area Advisory Board. Unanimous voice vote CONSENT AGENDA ORDINANCE NO. 87-03-0 COMMUNICATONS TO THE ASSEMBLY APPROVAL OF MINUTES MINUTES OF OTHER MEETINGS CITIZEN'S COMMENTS EMPLOYEE OF THE MONTH AWARD COMMITTEE REPORTS APPOINTMENT TO SOUTH CENTRAL HEALTH PLANNING AND DEVELOPMENT, INC. BOARD OF DIRECTORS APPOINTMENT TO MONASHKA BAY SERVICE AREA ADVISORY BOARD K.I.B. Regular Assembly Meeting 2 January 6, 1987 ff 7 PUBLIC HEARING A. 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 One To B--Business. (Rezanof Drive East) GREGG, seconded by MCFARLAND moved to adopt Ordinance No. 86-51-0. The presiding officer called for public testimony. Lorna Arndt questioned why just three lots were being considered for rezoning when in the past, seven lots were considered too few for rezoning. She felt this rezoning would be "spot zoning." She thought borough industrial property should be sold for busi- ness purposes before rezoning private property to "Business." Shirley Berns, resident on Cliffside Road, spoke against the ordinance. She felt the noise and traffic which would be gener- ated by businesses on the property would be objectionable in an area that is primarily residential and in close proximity to Abercrombie State Park. The presiding officer closed the public hearing and reconvened the assembly. Assemblyman Austerman questioned Linda Freed regarding business zoning in the surrounding area and whether this could be consid- ered "spot zoning." Assemblyman Stevens asked if the rezoning was being done to bring the lots into compliance with the code. Linda Freed responded with a definition of "spot zoning" and also said at the present time all the lots have legal non -conforming uses on them under rural residential district. In response to questions, Steve Rennell explained that the commission felt these lots were appropriate for business lots because they are away from the curve in the road, had good access to the main road and had been leveled. VOTE ON MOTION Ayes: Austerman, Gregg, Stevens Noes: Blankenburg, McFarland, White MOTION FAILED 3 Ayes, 3 Noes B. Ordinance No. 86-53-0 Calling For A Special Election And Placing The Question Of The Adoption Of A Sales Tax On The Ballot. STEVENS, seconded by GREGG VOTE ON MOTION TO REMOVE FROM TABLE Ayes: Noes: MOTION CARRIED moved to remove from the table Ordinance No. 86-53-0. Blankenburg, Gregg, McFarland, Stevens, Austerman, White None Unanimous PUBLIC HEARING ORDINANCE NO. 86-51-0 ORDINANCE NO. 86-53-0 K.I.B. Regular Assembly Meeting 3 January 6, 1987 VOTE ON MOTION TO ADOPT PUBLIC HEARING AUSTERMAN, moved to adopt Ordinance seconded by MCFARLAND No. 86-53-0. ORDINANCE NO. 86-53-0 The presiding officer called for public testimony. (continued) Dennis Murray read the first WHEREAS in the ordinance regarding the borough tax system being based entirely on the assessment of real and personal property tax and questioned the accuracy of the statement. He stated the borough received a substantial amount of money from the raw fish tax and wondered about the honestly to the voters in suggesting that real property tax was the only alternative for raising tax revenues. He thought the introduc- tion of a sales tax might be premature since the budget was balanced this year and the size of the revenue shortfall for FY88 budget is still unknown. He felt the sales tax question was such an important question that it should be voted on during the general election rather than a special election. Wally Johnson stated he was not against taxes but he wanted to know how his money was going to be spent. He agreed with Mr. Murray regarding the timing of the election. He asked the assem- bly if they had looked to see where they could cut or save before instigating a sales tax. Randy Covey thought the sales tax was a little premature and was in favor of waiting to see how big the deficit was going to be before holding an election. Lorna Arndt said that instead of raising taxes, the borough should concentrate on cutting costs. Regarding the telephone poll in which the majority of respondents said they preferred a sales tax to an increase in the mill rate, she said mostly city residents were called and a true poll should have been taken door-to-door. Okey Chandler voiced objection to the sales tax and thought there should be a ten percent reduction in operating expenses of the borough. He thought consolidation of the city and borough would save money. Sid Cozart spoke against the one cent sale tax at this time because the borough didn't know the amount of the shortfall. He wanted to know everything up front before agreeing to generate money with a sale tax. He would like to see a freeze on all spending for items not on the present budget. The presiding officer closed the public hearing and reconvened the assembly. Assemblyman Gregg agreed with most of the testimony and said if those people who pay taxes are willing to accept the risk and the certainty that the mill rate is going to have to go up for a year while we wait to implement this in October, then so be it. Assemblyman Blankenburg agreed with Mr. Gregg and said there was no question that there will be a revenue shortfall. Assemblyman McFarland stated he thought that instigating a sales tax now would be putting the cart before the horse. Assemblyman Stevens said that after listening to testimony that residents would be willing to make up the shortfall on the short term with property tax, he would change his position until the revenue deficit was known. Assemblyman Austerman said he voted against the sales tax at the first reading and he was glad to see the rest of the assembly come around to his way of thinking. K.I.B. Regular Assembly Meeting 4 January 6, 1987 Mayor Selby pointed out that there would be no need for a sales tax in October because the budget would have been balanced by then. He said the assembly was forgetting the folks who responded that they would prefer to see a sales tax over a mill rate in- crease; and he said he was a little puzzled why the assembly was wiser than the public in knowing how the public would vote as far as their preference for the method of taxation for the community. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION FAILED None Gregg, McFarland, Stevens, Austerman, Blankenburg, White Unanimous Mayor Selby review the January meeting schedule. OLD BUSS A. Ordinance No. 86-44-0 Establishing A Sewer Connection Fee. BLANKENBURG, moved to remove from the seconded by STEVENS table Ordinance No. 86-44-0. VOTE ON MOTION TO REMOVE FROM THE TABLE Ayes: Noes: MOTION CARRIED McFarland, Stevens, Austerman, Blankenburg, Gregg, White None Unanimous Dan Millard, representing the Engineering Department on behalf of Service District No. 1, said the service district requested this ordinance be tabled until a meeting could be held with the City of Kodiak to adequately address this matter. seconded by AUSTERMAN VOTE ON MOTION TO TABLE Ayes: Noes: MOTION CARRIED NEW BUSINESS A. BID AWARDS 1. Animal Control Contract BLANKENBURG, seconded by STEVENS moved to table Ordinance No. 86-44-0 until the April Assembly Meeting. Stevens, Austerman, Blankenburg, Gregg, McFarland, White None Unanimous PUBLIC HEARING ORDINANCE NO. 86-53-0 (continued) MESSAGES FROM BOROUGH MAYOR OLD BUSINESS ORDINANCE NO. 86-44-0 NEW BUSINESS BID AWARDS ANIMAL CONTROL CONTRACT moved to authorize the mayor to enter into negotiations with Randall and Carol Covey for contractual Animal Control Services and further authorize the mayor to execute Animal Control Services Contract with Randall and Carol Covey. K.I.B. Regular Assembly Meeting 5 January 6, 1987 I6% At the request of the presiding officer, Mayor Selby gave a brief NEW BUSINESS synopsis of the contract for the audience. Assemblyman Austerman stated $25,000 had been budgeted for this BID AWARDS contract and this bid was $76,000. (continued) Mayor Selby said the contractors were willing to negotiate and ANIMAL CONTROL the first six months of the contract will fit within the $25,000 CONTRACT that was budgeted. Assemblyman Austerman requested that a statement about the $25,000 be added to the motion so it would be tied to the budget. He said the proposal listed $21,480 annually for a building to house the animals and he thought at that rate maybe the borough should look into building a facility because it wouldn't take too long to amortize the cost of a building. AUSTERMAN, amend the motion to include seconded by MCFARLAND NOT TO EXCEED $25,000. VOTE ON MOTION TO AMEND Ayes: Blankenburg, Gregg, McFarland, Stevens, Austerman, White Noes: None MOTION CARRIED Unanimous VOTE ON MOTION TO AWARD Ayes: Austerman, Blankenburg, Gregg, McFarland, Stevens, White Noes: None MOTION CARRIED Unanimous 2. Plumbing Bids PLUMBING BIDS STEVENS, moved to reject bid received seconded by AUSTERMAN for plumbing contract as non -responsive. VOTE ON MOTION TO REJECT Ayes: Austerman, Blankenburg, Gregg, McFarland, Stevens, White Noes: None 14OTI0N CARRIED Unanimous The presiding officer called for a ten minute recess. The presiding officer reconvened the assembly meeting. B. RESOLUTIONS 1. Resolution No. 87-04-R Approving A Change Order To RESOLUTION Bucon, Inc. Contract Number 186 (Baler Facility). NO. 87-04-R STEVENS, moved to adopt Resolution seconded by GREGG No. 87-04-R approving a change order to Bucon, Inc. Contract Number 186 in the amount NTE $182,040. K.I.B. Regular Assembly Meeting 6 January 6, 1987 10 Assemblyman Blankenburg commented that when people said it NEW BUSINESS wouldn't cost much money to move the baler facility, this cost was just the tip of the iceberg. RESOLUTION NO. 87-04-R A discussion regarding the contents of the contract followed (continued) between the assemblymembers and the mayor. Assemblyman Austerman felt that competitive bids should have been solicited rather than awarding all items under one contract. Responding to a question from Assemblyman Austerman, Mayor Selby said that by passing this resolution the assembly was agreeing to spend the $109.000 for additional work to be done with the approval of the assembly. VOTE ON MOTION TO ADOPT Ayes: Gregg, Stevens, Blankenburg, White Noes: McFarland, Austerman MOTION CARRIED 4 Ayes, 2 Noes 2. Resolution No. 87-05-R Approving An Increase Amending RESOLUTION Contract No. 135 With Arctic Engineers, Inc. NO. 87-05-R STEVENS, moved to adopt Resolution seconded by GREGG No. 87-05-R approving an increase amending Contract Number 135 with Arctic Engineers, Inc. in an amount NTE $76,445. VOTE ON MOTION TO ADOPT Ayes: McFarland, Stevens, Blankenburg, Gregg, White Noes: Austerman MOTION CARRIED 5 Ayes, 1 No 3. Resolution No. 87-03-R Declaring Certain Baler Equipment RESOLUTION Surplus And Directing It To Be Sold. NO. 87-03-R GREGG, moved to adopt Resolution seconded by MCFARLAND No. 87-03-R. In response to questions, Mayor Selby said the minimum acceptable bid on each item of equipment would recover the cost of the of the equipment. VOTE ON MOTION TO ADOPT Ayes: Stevens, Austerman, Blankenburg, Gregg, McFarland, White Noes: Noes 4. Resolution No. 87-06-R Authorizing Transfer And Expendi- RESOLUTION iture Of Previously Appropriated Sums For Projects. NO. 87-06-R MCFARLAND, seconded by AUSTERMAN moved to adopt Resolution No. 87-06-R. K.I.B. Regular Assembly Meeting 7 January 6, 1987 � Qa VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Austerman, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous 5. Resolution No. 87-07-R Opposing Recordation Of Trade Name "Alaskan Seafood Company." BLANKENBURG, moved to adopt Resolution seconded by AUSTERMAN No. 87-07-R. Mayor Selby explained the Economic Development Committee had brought to the borough's attention that a company in Chandler, Arizona was proposing to purchase frozen seafood from Mexico and market it under the trade name of "Alaskan Seafood Company." He said this resolution will be sent to the Commissioner of Customs (regulatory agency) asking them to reject the application of any corporation proposing use of a trade name suggesting Alaskan Seafood products, unless such products are, in fact, of Alaskan origin and U.S. manufacture. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED C. ORDINANCES FOR Blankenburg, Gregg, McFarland, Stevens, Austerman, White None Unanimous 1. Ordinance No. 87-04-0 Amending The Kodiak Island Borough Code By Adding Chapter 3.26 - Sales Tax. AUSTERMAN, seconded by GREGG moved to adopt Ordinance No. 87-04-0 at first reading. VOTE ON MOTION TO ADOPT IN FIRST READING Ayes: None Noes: Gregg, McFarland, Stevens, Austerman, Blankenburg, White MOTION FAILED Unanimous 2. Ordinance No. 87-05-0 Amending K.I.B. Code Section 3.16.070, Exceptions To Bidding Requirements. AUSTERMAN, moved to adopt Ordinance seconded by STEVENS No. 87-05-0 at first reading. VOTE ON MOTION TO ADOPT IN FIRST READING Ayes: Noes: MOTION CARRIED McFarland, Stevens, Austerman, Blankenburg, Gregg, White None Unanimous NEW BUSINESS RESOLUTION NO. 87-06-R (continued) RESOLUTION NO. 87-07-R ORDINANCES FOR INTRODUCTION ORDINANCE NO. 87-04-0 ORDINANCE NO. 87-05-0 K.I.B. Regular Assembly Meeting (7 January 6, 1987 63 D. OTHER ITEMS NEW BUSINESS None CITIZENS' COtP1ENTS CITIZENS' COMMENTS Kari Kornfeind, Director of the Kodiak Island Convention and Visitors Bureau, presented the Kodiak Island Borough Assembly and Mayor with a certificate of appreciation in recognition of con- tributions and efforts in support of Kodiak Island's Visitor Industry. She said the bureau appreciated the borough's open door policy and willingness to work with them. ASSEMBLYMEN'S COMMENTS ASSEMBLYMEN'S COMMENTS Assemblyman Blankenburg inquired if construction of the baler facility was on schedule. Mayor Selby said the baler facility had not been on schedule and that was the reason for the $10,000 deduct on contract number 135 with Arctic Engineers in an effort to get back on schedule. He said he didn't think it would meet the March 1, 1987 completion date but felt it wouldn't be a problem with the Department of Environmental Conservation. A representative from DEC would be in Kodiak on Wednesday and the situation would be discuss, he said. Assemblyman Austerman said during the work session earlier in the day the impound fees and licensing fees for animals were dis- cussed at length. He stated that after hearing arguments he had changed his mind and feels that $75.00 might be a little high for the licensing fee of dogs. He thought the subject should be taken up at a work session. Assemblyman Gregg said he didn't say anything during the rezoning l public hearing but felt that if a six acre parcel adjacent to the main highway was not suitable to be zoned "Business", he wondered what would be suitable. He didn't think the arguments against the rezoning were adequate to defeat it. He thought the poten- tial use of the land should be look into and not the present use of the land. He didn't think "Business" zoning should be considered as something onerous. Assemblyman Stevens reiterated his concerns on the sales tax question. He thought the community was fooling itself if it believed the borough was not facing a severe budget crunch. He said there would be some tough going ahead in the next few months putting together a budget. He predicted a severe increase in the mil rate and thought the people should be aware of it. He said they just voted down an opportunity to collect an additional $800,000 in revenue and certainly the argument that the borough was getting ahead of itself by anticipating a shortfall may be valid but sometimes that is called foresight. Assemblyman McFarland thought the licensing fees on the animals should be reviewed and the fees brought into more realistic figures. He also thought there would be a budget deficit and suggested that alternative methods of funding be looked into such as raw fish tax. Assemblyman White said in not passing the sales tax ordinance, the borough and school district budgets were going to have to be boiled down. He stated he has never been in favor of raising property taxes in the community but in light of the budget deficit it was going to be difficult to stick to it. He thought maybe personal property taxes might have to be looked at also. K.I.B. Regular Assembly Meeting 9 January 6, 1987 10 There being no further business to come before the assembly, the meeting adjourned at 8:39 p.m. P'fe ding Officer ATTEST: Bbrough`,�;e ADJOURNMENT K.I.B. Regular Assembly Meeting 10 January 6, 1987