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1987-06-03 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting June 3, 1987 A special meeting of the Kodiak Island Borough Assembly was held SPECIAL MEETING June 3, 1987, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:02 p.m. (A verbatim record is on file in the Clerk's office) There were present: Lorne White, Presiding Ann Barker ROLL CALL Alan Austerman Eric Blankenburg Ken Gregg Jack McFarland Wayne Stevens comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Gaye Vaughan, Borough Clerk Shirley Berns, Deputy Borough Clerk PUBLIC HEARING PUBLIC HEARING A. Ordinance No. 87-13-0 Levying Taxes On All Taxable Real And ORDINANCE Personal Property Within The Borough For The Expenses And NO. 87-13-0 Liabilities Of The Borough For The Fiscal Year Commencing On The First Day Of July 1987 And Ending On The Thirtieth Day Of June 1988. BARKER, seconded by AUSTERMAN seconded by MCFARLAND moved to adopt Ordinance No. 87-13-0. moved to amend by substitution. The presiding officer noted that substitution would reinstate the cuts made by the assembly in May. The presiding officer called for public testimony. Gary Stevens, President of the K.I.B. School Board, stated the Board was requesting $2,200,000 in operating funds and the borough had budgeted $1,985,000. He said that during work sessions, he felt the assembly had committed themselves to the $2,200,000 figure and the school district had balanced their budget accordingly. He urged the assembly to fully fund the $2,200,000 and explained that the school district could then replace many of the losses they had suffered last year in staff- ing. He said they had public input in developing their budget and were responding to the concerns of their constituency. He went on to explain the reasons for the full funding request. Dennis Murray, member of the K.I.B. School Board, thought the assembly was making the right move by showing the full participa- tion of the borough (including insurance) in the amount of fund- ing in the school district budget. He urged full funding of the school district budget. Jeanine Keplinger, member of the Association of Retarded Citizens, said that due to the number of students enrolled in Special Edu- cation and the great variety of students' needs, additional Special Education classes will be needed next year and she asked for full funding of the school district budget. Julie Cain Hill thought it was important that public education be given the number one priority in Kodiak and said it was necessary to fund the school district budget at the full amount requested. She said her Special Education class was one that had been impacted by additional students thereby making learning and teaching more difficult. 16 Kodiak Island Borough Special Assembly Meeting Lorna Arndt asked why the school district budget showed an PUBLIC HEARING increase over last year. She went on to say there were forty students in a classroom when she went to school and she learned. ORDINANCE She didn't think it was up to the taxpayer to pay for extra NO. 87-13-0 teachers so there would be fewer children in the classroom. (continued) Nancy Holzshu, mother of three children and a speech pathologist in the school district, gave reasons for the need for additional funding to teach handicapped students. Rosanne Carlson, mother of a child involved in the resource pro- gram at East Elementary School, said she noticed how the cuts in the program had effected her child and requested full funding to replace services previously cut. Paul Gradquist spoke in favor of supporting the budget at full funding and was in favor of increasing the mill rate to do it. Jean Barker suggested people visit the schools to see how crowded the classrooms really are. Dave Chatfield opposed an increase in the mil rate for the extra school district funding. He suggested the possibility of self- insurance for the school district to cut insurance costs. Martha McKinney spoke in favor of full funding for the school district budget. Laurie Madsen, member of the Budget Review Committee, called from Bell's Flats and asked the assembly to support the school budget. She didn't want the mil rate raised and favored a sales tax to spread the cost over the entire area. Wally Johnson said the need was not so much to raise more money as it was to redistribute present funds. He offered his ideas on balancing the budget and thought the formation of a budget task force comprised of members from the community who had expertise in various areas would be wise. Janel Keplinger noted the changes in education over the years and the need for the classroom to reflect these changes. Carolyn Floyd, President of Kodiak Community College, spoke in favor of funding the Kodiak Community College non-credit program which is the Adult Basic Education Program. Ginny Shank concurred with Mrs. Floyd's statements with regard to funding KCC non-credit programs. Jim Cobis spoke in favor of funding the non-profit organizations because he thought they reflected the active people in the community who work to help others. Scott Arndt thought the borough was expanding into areas such as Economic Development and Animal Control and getting away from the basics such as education. He favored the 3.75 mil rate on taxes and suggested the borough look at another form of revenue such as sales tax. Marion Johnson, Director of the Baranov Museum, urged funding for the museum saying it is a major tourist attraction in the community. Janet Thompson, resident of Port Lions, asked for support of the libraries in the villages and submitted letters and a budget report from Port Lions Library. Carla Kewan, resident of Port Lions, spoke in favor of funding the Port Lions Library. June 3, 1967 Page 2 Kodiak Island Borough Special Assembly Meeting Millie Sugita, Kodiak Public Health Center, requested funding for PUBLIC HEARING the center and said the money was used to pay for their telephone which was direly needed since the reduction of one nurse from ORDINANCE their staff. NO. 87-13-0 (continued) Bob Johnson, President of the Kodiak Arts Council, spoke in favor of fully supporting the Kodiak Arts Council. He said the council represented thirteen member groups and he didn't object paying taxes to support the programs. Ginny Shank gave a report of the Kodiak Arts Council activities for the past year. Meri Holden asked for support of the Kodiak Arts Council funding and said the various groups offered opportunities to members of the community. She read a poem on the budget and favored increasing taxes if necessary. Rita Stevens gave a personal point of view on the importance of arts in the community and emphasized that the arts improve the quality of life. She urged support of funding for the Kodiak Arts Council. Kari Kornfield, Director of the Kodiak Island Convention and Visitors Bureau, stated that money put into the Bureau was an investment in Kodiak's economy and she urged continued funding. J. S. Lee spoke in favor the economic development effort by the borough and stressed the need for it to continue. Jim Rao, President of the Board of Directors of the Kodiak Coun- cil on Alcoholism, explained how the funds appropriated for the council would be utilized. He stressed that rehabilitation ulti- mately saved money. Gordon Gould spoke in favor of the animal control program, Small World, KCA, Baranov Museum, library, public radio, the arts, col- lege, tourism, junk removal program and said that he would be willing be pay more taxes for these services. Becky Miller, representative of the American Red Cross, urged continued funding of the local chapter and listed the services provided by them. Jim Ramaglia, representing the Kodiak City Council, urged contin- ued funding of the Kodiak Public Library. Leslie Zeloof, Alaska Legal Services, said there had been a thirty percent funding reduction on the state and federal level to their program and they need local support to show their services are necessary. She presented a resolution from the Kodiak Bar Asso- ciation urging support. Ethan VanEck, representing the Kodiak Area Native Association, stated their appreciation of the funding provided by the borough. Janice Brackland, Chairman of Santa to the Villages Program, r expressed appreciation for the support their group received each year. Bob Pederson, spoke in support of the Kodiak Public Broadcasting Association and said he would favor a sales tax to fund it. Yvonne Zharoff, member of the Economic Development Commission, urged support of the Economic Development Department. Nancy Dupree, member of the Economic Development Commission, stressed the need for staff support in economic development and urged continued support for that department. June 3, 1987 Page 3 Kodiak Island Borough Special Assembly Meeting Andy Cristaldi, member of the Economic Development Commission, PUBLIC HEARING said economic development was an investment and a long term pro- cess. He said it was vitally important for a private developer ORDINANCE to have the cooperation from the local government which was a NO. 87-13-0 function of an economic development office and he urged support (continued) the office. Nancy Mane requested support of Small World Day Care Center. Jeanne Volker, Director of the Kodiak Baptist Mission, stated the need for continued financial support to maintain their present services. Doug Dawson, board member of the Kodiak Baptist Mission, ex- plained the changes in the institution over the years and the need for additional staffing with more expertise and experience. He urged continued support for the Mission as well as funding for the Arts Council, Historical Society, apd the library. Mary Monroe spoke in favor of funding non-profit organizations especially Small World and was willing to pay more taxes in order to do so. Jim Belamaci, area coordinator for Kodiak Area Special Olympics, thanked the assembly for the continued support of this organiza- tion and said he would be willing to pay more taxes to fund non-profit organizations. Okey Chandler favored the funding of Small World but was against funding of the other non-profit organizations. Bruce Barrett, representing ADF&G Commercial Fisheries, spoke in favor of the funding to rehabilitate the salmon fish run at Akalura. Susan Braine, General Manager of KMXT, stated public broadcasting had suffered cuts from state funding with a proportionate decrease in federal funding and she requested a wavier of rent in lieu of awarding a grant. She said KMXT would be willing to pay the utilities. Roseanna Carlson, member of the Board of Directors of the Kodiak Women's Resource Center, spoke in favor of supporting of the center and also the Senior Citizens Center. Dale Soughers thought the sales tax proposal should be put on the ballot for a vote of the people. Stan Kaneshiro, spoke in favor of funding the Kodiak Island Con- vention and Visitors Center. Duane Freeman, representing the Kodiak Island Chamber of Commerce Litter Committee, thanked the assembly for support. Wilton White complimented the assembly for the manner in which they made copies of the budget available to the public. Dennis Murray urged funding for the Senior Citizens Center. He said taxes didn't need to be raised due to the downturn in funding because the borough carries a large fund balance that could be tapped. He proposed the fund balance be spent on eco- nomic development or developing roads but didn't think it should be left in a contingency fund. Randy Covey spoke in favor of the animal control ordinance because the service was being used. Elaine Hunter outlined the importance of quality day care as provided by Small World Child Care Center and thanked the assembly for their funding. She said she was willing to pay taxes to support the resources and services in the community. June 3, 1987 Page 4 Z Iq Kodiak Island Borough Special Assembly Meeting Jerry Holt didn't want to see taxes raised to support the various PUBLIC HEARING non-profit organizations, however, he thought the borough should support economic development in the area of fisheries because it ORDINANCE built the tax base. NO. 87-13-0 (continued) Lorna Arndt would like to see the funding for non-profit organ- izations stopped and the money used toward lowering the taxes. The presiding officer called for a ten minute recess. The presiding officer reconvened the assembly. Mary Lou Knudsen spoke in favor of funding for Head Start. Okay Chandler thought the borough should support KMXT because it operates Channel 9 which provides television to people who couldn't otherwise afford it. Jim Cobis, Chairman of the Parks and Recreation Committee, said the Parks' number one accomplishment was the summer youth employ- ment program and the money funded would be used toward this pro- gram. Also, he spoke in favor of the animal control ordinance. George Godfrey commented he was not paying enough taxes when compared to other places he has lived. He said this community supported both the body and the soul of the inhabitants and thought it was important to support the non-profit organizations which supported the soul. Mayor Selby noted for the record that letters had been received from G. B. Starr-Bresette, Secretary of the Board of Directors, Kodiak Council on Alcoholism, the Kodiak Regional Aquaculture Association, a petition from the Port Lions school students in support of the community library, and a letter from Georgia Kramer in support of the Port Lions Library. The presiding officer closed the public hearing and reconvened the assembly. VOTE ON MOTION TO AMEND MOTION CARRIED Unanimous voice vote GREGG, moved to table Ordinance seconded by BARKER No. 87-13-0 until the end of the meeting. VOTE ON MOTION TO TABLE MOTION CARRIED Unanimous Voice Vote B. Ordinance No. 87-19-0 Increasing Personal Property Tax On ORDINANCE Boats And Vessels. NO. 87-19-0 BLANKENBURG, moved to adopt Ordinance seconded by STEVENS No. 87-19-0. The presiding officer called for public testimony. Dennis Murray spoke in opposition to the ordinance because of the problems it would create between the City of Kodiak and the bor- ough regarding intergovernmental revenues. He said the fishing industry supported local government through the raw fish tax. Jim Ramaglia pointed out the arrangement between the City of Kodiak and borough where an agreement was made for the borough to eliminate the tax on boats and the city to eliminate the tax on util- ities. He said fisheries made Kodiak "go" and he didn't think the boat owners should be taxed on their boats. He said if boat owners chose to relocate their home port because of the boat tax that other businesses in Kodiak would be effected. June 3, 1987 Page 5 �,V Kodiak Island Borough Special Assembly Meeting Lorna Arndt thought the borough should make a deal with the city PUBLIC HEARING not to add another cent of sales tax if the borough would not pass a boat tax. ORDINANCE NO. 87-19-0 Lou Iani said Kodiak was a fishing community and he did not want (continued) a message sent that the community was not concerned or supportive of the fishing community. Mayor Selby noted for the record that letters from David and Wanda Jentry, Robert L. Krueger, Chris Blackburn, James M. Miller, and Al Burch of the Alaska Draggers Association had been received opposing the boat tax. The presiding officer closed the public hearing and reconvened the assembly. Assemblyman Stevens explained his reasons for proposing a boat tax. Mayor Selby urged the assembly to vote against a boat tax because he said the biggest problem in dealing with the North Pacific Management Council during the last six months was having enough boats available to delivery the pollock to the canneries in Kodiak. The lack of boats showed low utilization by domestic boats as opposed to joint venture operations and he said this was the wrong tax at this time. VOTE ON MOTION TO ADOPT Ayes: None Noes: Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White MOTION FAILED Unanimous C. Ordinance No. 87-18-0 Suspending Section 406, Step ORDINANCE Increases, Of The Personnel Rules and Regulations. NO. 87-18-0 GREGG, moved to adopt Ordinance seconded by AUSTERMAN No. 87-18-0. The presiding officer called for public testimony; there being none the assembly was reconvened. VOTE ON MOTION TO ADOPT Ayes: Blankenburg, Austerman, White Noes: Barker, Gregg, McFarland, Stevens MOTION FAILED 3 Ayes, 4 Noes D. Ordinance No. 87-20-0 Placing The Question Of The Adoption Of A Sales Tax On The October 7, 1987 Regular Election Ballot. AUSTERMAN, moved to adopt Ordinance seconded by STEVENS No. 87-20-0. The president officer called for public testimony. Jim Cobis thought the sales tax would be a more equable way of distributing the tax burden across the whole spectrum and urged the assembly to publicize the pros and cons of the ordinance prior to the election. Jim Ramalgia suggested the fifth WHEREAS pertaining to tourists be deleted because there are not enough tourists visiting the area to significantly effect the tax. June 3, 1987 Page 6 ,a�I Kodiak Island Borough Special Assembly Meeting Dennis Murray spoke in opposition to the ordinance because he thought the borough could make better utilization of its current resources rather than instituting a sales tax. He objected to the fourth WHEREAS regarding the financing of non-profit organ- izations. He said a sales tax was a regressive tax and would be paid by those with the least ability to pay. The presiding officer closed the public hearing and reconvened the assembly. Assemblyman Gregg concurred with Mr. Murray regarding the fourth WHEREAS and explained his intent in putting the sales tax on the ballot was to earmark funds for the school district and debt service retirement. GREGG, seconded by STEVENS VOTE ON MOTION TO AMEND Ayes: Noes: MOTION CARRIED STEVENS, seconded by MCFARLAND VOTE ON MOTION TO AMEND MOTION CARRIED GREGG, seconded by MCFARLAND moved to amend the fourth WHEREAS to finance the School District and school debt retirement. Blankenburg, Gregg, McFarland, Stevens, Austerman, Barker, White None Unanimous moved to amend by deleting the fifth "WHEREAS." Unanimous Voice Vote moved to amend by deleting the third "WHEREAS." Mayor Selby thought it was a good idea to delete the third WHEREAS in light of the Tax Reform Act of 1987 which changed sales tax from a deductible item to a non -deductible one. VOTE ON MOTION TO AMEND MOTION CARRIED VOTE ON MOTION Ayes: Noes: Affirmative Voice Vote with Assemblyman Blankenburg responding in the negative. Gregg, McFarland, Stevens, Austerman, White Barker, Blankenburg MOTION CARRIED 5 Ayes, 2 Noes E. Resolution No. 87-34-R Authorizing A One -Time (Single -Year) Reduction To Property Taxes. AUSTERMAN, seconded by BARKER move to adopt Resolution No. 87-34-R. The presiding officer called for public testimony; there being none the assembly was reconvened. BARKER, seconded by MCFARLAND VOTE ON MOTION TO TABLE moved to table Resolution No. 87-34-R. PUBLIC HEARING ORDINANCE NO. 87-20-0 (continued) RESOLUTION NO. 87-34-R MOTION CARRIED June 3, 1987 Unanimous Voice Vote a,�.l Page 7 Kodiak Island Borough Special Assembly Meeting Ordinance No. 87-13-0 Levying Taxes On All Taxable Real And ORDINANCE Personal Property Within The Borough For The Expenses And NO. 87-13-0 Liabilities Of The Borough For The Fiscal Year Commencing On The First Day Of July 1987 And Ending On The Thirtieth Day Of June 1988. AUSTERMAN, seconded by BLANKENBURG VOTE ON MOTION TO REMOVE FROM TABLE MOTION CARRIED VOTE ON MOTION TO SUBSTITUTE Ayes: Noes: MOTION CARRIED BLANKENBURG, seconded by STEVENS VOTE ON MOTION TO EXTEND MOTION CARRIED moved to remove from the table Ordinance No. 87-13-0. Unanimous Voice Vote Blankenburg, White McFarland, Stevens, Austerman, Barker, None Unanimous moved to extend meeting until midnight. Unanimous Voice Vote At the request of Assemblyman Austerman, Mayor Selby explained several items in the substituted budget. The presiding officer called for a recess. The presiding officer reconvened the assembly. BARKER, seconded by MCFARLAND VOTE ON MOTION TO EXTEND Ayes: Noes: MOTION CARRIED BARKER, seconded by MCFARLAND VOTE ON MOTION TO RECESS moved to extend assembly meeting until 1:00 a.m. McFarland, Stevens, Austerman, Barker, Blankenburg, Gregg, White None Unanimous moved to recess. MOTION CARRIED Unanimous voice vote The presiding officer reconvened the assembly. AUSTERMAN, seconded by BLANKENBURG moved to amend by reducing the budget as follows: Reduce Animal Control to $30,000; reduce Economic Development to zero and place $50,000 in a Legislative Contingency fund; reduce Coast Guard Fund contribution to zero; reduce Chiniak Community Forum to zero; reduce $34,500 plus fringe benefits from Engineer- ing Department; and reduce $100,000 from Debt Service; add $15,000 to School District, and $8,175 to Clerk's Budget. A discussion followed between the assemblymembers regarding the motion. June 3, 1987 Page 8 ')a, Kodiak Island Borough Special Assembly Meeting VOTE ON MOTION TO AMEND Ayes: Noes: MOTION CARRIED GREGG, seconded by BL VOTE ON MOTION TO AMEND Ayes: Noes: MOTION CARRIED Stevens, Austerman, Blankenburg, Gregg, McFarland, White Barker 6 Ayes, 1 No moved to amend by transferring $2,000 from City of Kodiak Library to Village Libraries. Austerman, Barker, Blankenburg, Gregg, McFarland, Stevens, White None Unanimous ••• �••��• �, moved to extend until seconded by AUSTERMAN 1:30 p.m. VOTE ON MOTION TO EXTEND MOTION CARRIED Unanimous Voice Vote The mayor gave his reasons why several items in the budget were unacceptable to him and a discussion followed between Assembly - members and the Mayor. BARKER, moved to add $34,500 to seconded by STEVENS Engineering Department and $10,000 to Continuing Education. VOTE ON MOTION TO AMEND Ayes: Barker, Blankenburg Noes: Gregg, McFarland, Stevens, Austerman, White MOTION FAILED 2 Ayes, 5 Noes VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Blankenburg, Gregg, McFarland, Stevens, White, Austerman Noes: Barker ,--_ MOTION CARRIED 6 Ayes, 1 No AUSTERMAN, moved to remove from the seconded by BLANKENBURG table Resolution No. 67-34-0. VOTE ON MOTION TO REMOVE FROM TABLE MOTION CARRIED Unanimous Voice Vote BARKER, moved to table Resolution seconded by MCFARLAND No. 87-34-0. VOTE ON MOTION TO TABLE ORDINANCE NO. 87-13-0 (continued) MOTION CARRIED Unanimous Voice Vote June 3, 1987 Page 9 _" Kodiak Island Borough Special Assembly Meeting ADJOURNMENT ADJOURNMENT There being no further business to come before the assembly, the meeting adjourned at 1:12 a.m. C 6tO P 'ding Officer ATTEST: torouOOZIerk June 3, 1987 Page 10 a .j