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2021-02-18 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting Teleconference February 18, 2021 A regular meeting of the Kodiak Island Borough Assembly was held on February 18, 2021 via teleconference. The meeting was called to order at 6:30 p.m. The invocation was given by Major David Davis of the Salvation Army. Mayor Roberts led the Pledge of Allegiance. Present was Mayor Bill Roberts as were Assembly members Scott Arndt, Duane Dvorak, Geoff Smith, Dennis Symmons, James Turner, and Aimee Williams. Also present were Borough Manager Michael Powers, Borough Clerk Alise Rice, and Assistant Clerk Mitchell Davidson. ATTENDANCE BY ROLL CALL: Arndt, Dvorak, Kavanaugh, Smith, Symmons, Turner, and Williams. APPROVAL OF AGENDA All items listed with an asterisk (*) are considered to be routine and non -controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. ARNDT moved to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY *APPROVAL OF MINUTES • None CITIZENS' COMMENTS The following spoke under citizens comments: • Dan Rohrer • Kurt Froening • John Whiddon AWARDS AND PRESENTATIONS • None COMMITTEE REPORTS: • Assembly member Kavanaugh reported on the Consolidation Committee and encouraged public attendance. Kodiak Island Borough Assembly Regular Meeting Minutes February 18, 2021 Page 1 of 5 PUBLIC HEARING 1. Ordinance No. FY2021-28 Amending Kodiak Island Borough Code Of Ordinances Title 3 Revenue And Finance Chapter 3.25 Appropriation And Levy Section 3.25.030 Maximum Allowable Tax Revenues, Limiting Restrictions To General Fund Property Tax Revenues. ARNDT moved to adopt Ordinance No. FY2021-28 Introduced at the February 4, 2021 regular meeting, and advance to public hearing on February 18, 2021. At the request of the assembly, staff was asked to propose changes to the current maximum allowable tax revenue KI B code section 3.25.030. The purpose of the changes is to make the program less ambiguous, and easier to administer, while focusing on the objective of limiting property tax increases. When the initiative was first adopted there was some difficulty in sorting through the application of the maximum revenue limit as it might apply to non-areawide taxes such as service area taxes, and to excise taxes which are levied only upon certain user groups like transient occupancy taxes, tobacco taxes, marijuana taxes and severance taxes. The initiative was ambiguous in relation to service areas. Additionally, some of the sponsors of the initiative indicated shortly after passage that the primary objective was areawide property taxes, not service area, excise or severance taxes. For service areas, combining service areas in the same pool with areawide funds could adversely impact either or both. The portion of the community paying taxes for service areas is less than the whole, and if their ability to fund desired services were limited by actions of the whole Borough, including residents outside the service area, that could make it difficult to administer service area functions in on orderly manner. The revenue cap has been interpreted to be used to calculate the revenue limit for each service area separately to avoid this issue. However, service areas often have greater fluctuations in tax revenue demands from year to year due to smaller budgets and the magnitude of the impacts if there is a heavy snow year or fluctuation in state funds available. Accordingly, the revenue cap as applied to service areas does not achieve the primary objective of the . initiative sponsors and can create unanticipated administrative issues. Accordingly, the ambiguity regarding service areas under the revenue limitation initiative can be resolved by excluding service area levies from the scope of the ordinance and focusing on areawide funds. With respect to excise taxes such as transient occupancy tax or tobacco tax, those taxes are paid primarily by visitors or user groups and not by all residents in the borough. The pro statement in the voter pamphlet concerning the measure indicated that the concern which motivated the initiative was annual increases in property taxes. Other non -property taxes which are not paid by all residents need not be included to limit the increases available for property taxes. Further, if the maximum revenues combines property tax and other taxes in the same pool, a poor fish year or poor tourism year could shift the burden to property taxes to make up the difference. If the limit is only on property taxes then the rate of property taxes is held to only the natural increases or voter approved increases contemplated in the initiative. Kodiak Island Borough Assembly Regular Meeting Minutes February 18, 2021 Page 2 of 5 Taxes restricted by MATR: Tax T�rpe Now After "'4.....v....,...o,...,.,.v,......,v,o-,.v...,.,,.,.+n.v...•... ,, •...v•.n c..n e..n.v..,..nave.+..nav,...,nev,aur,n..v.,e......v:n..v,...v.,........v,....•Fsv.+.n.,,.•::s.....,.vr..v,..v..r.v,...,.a,.v,..v,,...,..•,.u.,..a,....n„va..a,.av,.,v...v,...,.,v,.o..n.:v,.av,..,rwevs.ev,nc......l tv,.av:. +.....: n....-, ,. . .,. . ,.... .. ..... . , ...1 ,'� Severance yes no Excise yes no Transient Accommodations yes no Property yes - area wide yes - area wide yes - non -area wide no - non -area wide yes - area wide yes - area wide Personal Property Yes - non -area wide no - non -area wide Mayor Roberts opened the public hearing. The following spoke during the public hearing: • None. Seeing and hearing none, Mayor Roberts closed the public hearing and reconvened the regular meeting. ROLL CALL VOTE ON THE MOTION CARRIED FOUR TO THREE: Arndt, Dvorak, Turner, and Williams (AYES); Kavanaugh, Smith, and Symmons (Noes). BOROUGH MANAGER'S REPORT Federal Issues: • Stimulus III -it is moving forward with roughly $2.5M potentially for the Borough, however use of the funds and any restrictions, remain to be worked out. • On an individual level, an expanded child tax credit appears to be favorably received in Congress. State Budget: • Budget -Great presentation by AML on state impacts to local government. Too early to know what will happen on school bond debt. As usual, lots of "we have to cut......" and "our constituents need....." comments being made at this point, we aren't down to the nitty- gritty yet. • Attended an AML call on PERS. As usual, the State is trying to weasel out of their screw up by passing on more of the cost to municipalities. I expect the Mayor at some point will be asked to testify on this item. Kodiak Island Borough Assembly Regular Meeting Minutes February 18, 2021 Page 3 of 5 rnvin-1q. • Transition plan on Covid-19 - currently green with a 50% occupancy limit. • ESC did NOT meet this week (February 15th). • Attended the ECHO (Extension For Community Healthcare Outcomes) and AML call with Dr. Zink and the State team. It appears that additional doses will be coming in plus the federal "retail pharmacy" program will be starting here which means additional doses (not part of "our" allocation). • Fisheries response to the lack of emergency declaration has been to keep doing what they are doing to keep their workforce intact. • There are ongoing concerns about schools and community spread. • There is significant anecdotal evidence to show that people who are symptomatic aren't getting tests which means we have unreported cases and close contacts. Staff / Finance / Recruitment: • Met with staff to review status of existing and proposed projects, provided direction on same. • Worked with staff on budgets for the majority of my time for the past two weeks. • Popular report goes out in the mail next Monday. • Fire Chief Recruitment -Advertisements out this week, discussed operational issues with City. Upcoming: • No off -road system travel planned. MESSAGES FROM THE BOROUGH MAYOR • Reported on a letter from Fish and Game about support for the Buskin Weir. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS CONSIDERATION OF CALENDAR - NEW BUSINESS CONTRACTS RESOLUTIONS ORDINANCES FOR INTRODUCTION OTHER ITEMS 1. Alaska Waste Suggested Amendments To Amendment No. 1 Amending Contract No. FY2019-25 Residential And Commercial Solid Waste Collection And Recycling Services. Kodiak Island Borough Assembly Regular Meeting Minutes February 18, 2021 Page 4 of 5 DVORAK moved to consider the Alaska Waste Suggested Amendments to Amendment No.1 Amending Contract No. FY2019-25. KAVANAUGH moved to convene into Executive Session to discuss a matter which might adversely affect the Borough and the Contractor. Mayor Roberts recessed the meeting at 7:20 p.m. Mayor Roberts reconvened the meeting at 7:25 p.m. KAVANAUGH withdrew the motion to convene into Executive Session. KAVANAUGH moved that the Assembly recess into Executive Session under the authority of KIBC 2.30.030 (f)(1)(b) for the purpose of discussing a possible amendment to amendment No. 1 of contract No. FY2019-25 a matter of which if discussed in open session the immediate knowledge of which would clearly have an adverse financial impact on the Borough. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Dvorak, Kavanaugh, Smith, Symmons, Turner, Williams, Arndt. KAVANAUGH moved to invite the Borough Mayor, the Brough Manager, the Borough Clerk, the Engineering and Facilities Director, and Projects Manager, and the Assembly into Executive Session. ROLL CALL VOTE CARRIED UNANIMOUSLY: Kavanaugh, Smith, Symmons, Williams, Turner, Arndt Dvorak After the vote, Mayor Roberts recessed the regular meeting at 7:30 p.m. and convened the executive session. ADJOURNMENT Mayor adjourned the meeting at 7:50 p.m. Clerk's Note: when exiting Executive Session and attempting to reconvene the Regular Meeting, audio equipment in the Assembly Chambers was found to be inoperable. Unable to continue the meeting with proper access by the public, the Mayor chose to adjourn the meeting without any further discussion or action. KODIAK ISLA ^'BO ` O G r i William Robe sr-,, Mayor AT EST: so Alise .Rice, Borough Clerk Kodiak Island Borough Assembly Regular Meeting Minutes February 18, 2021 Page 5 of 5