2021-11-09 Work Session
Watch meetings live, online at www.kodiakak.us
Citizen Comment: 486-3231 or 855-492-9202
Kodiak Island Borough
Assembly Work Session
School District Conference Room
Tuesday, November 9, 2021, 6:30 p.m.
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming
regular meeting agenda packet and seek or receive information from staff.
Although additional items not listed on the work session agenda are discussed when in troduced by the
Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly
action are placed on regular Assembly meeting agenda.
Citizen’s comments at work sessions are NOT considered part of the official record. Citizen’s comments
intended for the “official record” should be made at a regular Assembly meeting.
Page
1. Citizens' comments. 1-907-486-3231 or Toll Free 1-855-492-9202.
(Limited To Three Minutes Per Speaker)
2. Agenda items.
a.
Presentation By State Lobbyist, Mark Hickey, Hickey &
Associates
3 - 4
b.
Discussion On American Rescue Plan Act (ARPA) Funds
American Rescue Plan Act of 2021 Handout
c.
Discussion On State Capital Improvement List
5 - 6
d.
Brief Overview Of Borough Investments
Finance Department Handout
3. Manager's Comments
7 - 8
a.
Managers Report, November 9, 2021
4. Clerk's Comments.
5. Packet Review for the Regular Meeting of November 18, 2021
Page 1 of 8
Watch meetings live, online at www.kodiakak.us
Citizen Comment: 486-3231 or 855-492-9202
Items may be added during the work session for inclusion on the Regular
Meeting agenda. The item title needs to be provided/developed at the work
session in enough detail to give assembly and public reasonable notice.
Awards and presentations.
•
•
Public hearing.
•
•
Consideration of the calendar - Unfinished Business.
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Consideration of the calendar - New Business.
Contracts.
•
Resolutions.
• Resolution No. FY2022-11 Adopting A State Legislative Capital
Improvement Projects Priority List For The 2022 Legislative
Session.
Ordinances for introduction.
•
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Other items.
• Planning And Zoning Commission Case No. S21-008 Approval Of
Vacation Of Access And Utility Easement And Replat Of The Utility
Easement, Lot 4A, Lake Shore Estates.
•
6. Assembly Member' Comments.
7. Mayor Comments.
Page 2 of 8
1
Kodiak Island Borough
OFFICE of the MANAGER
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9301 Fax (907) 486-9390
TO: Kodiak Island Borough Assembly, Mayor Roberts
FROM: David Conrad, Interim Borough Manager
RE: American Rescue Plan Act of 2021 (ARPA) 11/9/2021
ARPA provides $350 billion in additional funding for state and local governments.
The funding is provided through the U.S. Treasury, referred to in the Act as “Coronavirus State
and Local Fiscal Recovery Fund (“CSLFRF”), and is included in Subtitle M, section 9901 of the
Act.
The local funding portion is approximately $130 billion, equally divided between cities and
counties. Localities will receive the funds in two tranches – the first, after the U.S. Treasury
certifies the proceeds to each jurisdiction and the second, one year later. Funding must be spent
by the end of calendar year 2024.
ARPA funds are non-recurring so their use should be applied primarily to non-recurring
expenditures.
Replenishing reserves used to offset revenue declines during the pandemic should be given high
priority to rebuild financial flexibility/stability and restore fiscal resiliency.
Investment in critical infrastructure is a particularly well-suited use of ARPA funds because it is
a non-recurring expenditure that can be targeted to strategically important long- term assets that
provide benefits over many years. However, care should be taken to assess any on-going
operating costs that may be associated with the project.
Adequate time should be taken to carefully consider all alternatives for the prudent use of ARPA
funding prior to committing the resources to ensure the best use of the temporary funding.
AGENDA ITEM #2.b.
Discussion On American Rescue Plan Act (ARPA) Funds
Page 3 of 8
2
Based on the Government Finance Officers Association (GFOA) ARPA Revenue Replacement
Calculator - using the required FYE 6/30/2019 as a base – the calculated 18-month reduction of
revenue through 12/31/2020 is $7,444,700. In round terms, the reductions can be attributed as
follows:
• $5,000,000 no school bond
• $935,000 less in severance taxes
• $403,0000 less in interest earnings
• $440,000 less in Solid Waste Revenues
Staff suggested uses for the first tranche –
$ 500,000 - General Fund - Replace lost revenues
$ 300,000 - Hospital Memorandum of Agreement – Design and Planning
$ 100,000 - Tourism – Provides for 2 years of regular expenses
$ 100,000 - Chiniak School Well – Evaluate new vs. old - Review, design, drill well, new
system.
$ 150,000 – Landfill Storm Water Infiltration and Collection Improvement
$ 100,000 – Peterson Roof and HVAC Design - 95%
$ 1,250,000
KIB received the first tranche on October 4, 2021, and we received $1,262,354.50. Funds are
being distributed in two tranches with the second tranche being released 1 year after
disbursement of the first tranche.
AGENDA ITEM #2.b.
Discussion On American Rescue Plan Act (ARPA) Funds
Page 4 of 8
Memorandum
Kodiak Island Borough
Finance Department
TO:
THROUGH:
Mayor and Members of the Assembly
Dave Conrad, Interim Manager
FROM: Dora Cross, Finance Director
SUBJECT: Investments
DATE: November 9, 2021
We have two different types of investment needs (long-term and short-term) and our code
provides for short-term options. Long-term investments needs would be the Facilities Fund
(which the duration of investments is usually greater than three years with few or no liquidity
requirements) and short-term investment needs would be for operational funds (which duration
of investments is usually less than three years with a focus on laddered liquidity).
1. Short-term investments: Leave the operational funds with staff who will continue to
utilize government money-market funds, account earning credits, CD’s and agency bonds
to ladder liquidity to match the cash flow needs of both the Borough and School district.
2. Long-term investments: Do one of four things with the Facility Fund (in order of my
preference):
a. Invest with the State Permanent Fund: There was State legislation proposed in
2019 that would have allowed municipalities the option to invest with them,
however I am not sure what happened to it. I believe this option to be best
because they are already familiar with which investments are allowed by State
law, may have smaller fees if based on percentage of investment, and may allow
us quicker access to large withdrawals due to the overall size of the fund.
b. Wait for AML and AMLIP to expand their investment group services: I spoke
with Nils Andreassen and AML and AMLIP, along with their advisor Alaska
Permanent Capital Management, are working on creating policies which would
offer municipalities investment services focusing on long‐term investments
rather than just the short‐term focus they currently have (see attached
description of AMLIP); they hope to have the option available within a year. We
are already an AMLIP member (they currently hold some of our short‐term
investments) and since they are very familiar with the uniqueness of municipal
and state government rules regarding investing public money, this would be a
great opportunity to have both short‐ and long‐term options for not only the
Facilities fund but also any investable operational cash. As a non‐profit
corporation, I would expect the fees would be based on covering overhead and
not on advertising and growing a profit‐type company.
AGENDA ITEM #2.d.
Brief Overview Of Borough Investments
Page 5 of 8
2
c. Contract and invest with a third-party investment firm: This would
necessitate developing an investment strategy and RFP, and changing our code to
allow the approved investing changes. I would expect higher fees than option ‘a’
and ‘b’, may incur early withdrawal penalties and/or not have quick access to
funds because investments would have to be sold early and, depending on the
contract, may have restrictions as to how much and when investments could be
sold.
d. Keep funds in-house and revise our current Investment Policies: Staff would
recommend changes to the current code to allow for long-term investment
strategies. This option this incurs fewer fees and may not have reserve restrictions
when withdrawing money. However, management of investments does use staff
time, which, with reductions in staff, means there may be missed investment
opportunities.
AGENDA ITEM #2.d.
Brief Overview Of Borough Investments
Page 6 of 8
Kodiak Island Borough
OFFICE of the MANAGER
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9301 Fax (907) 486-9390
TO: Kodiak Island Borough Assembly, Mayor Roberts
FROM: David Conrad, Interim Borough Manager
RE: Managers Report, November 9, 2021
COK/KIB Cooperative Relations Committee – Awaiting additional direction from Assembly
regarding possible cooperative projects. Clarifications and definitions will be changed associated
with the joint MOA for the installation of the Portland Loo’s. (Commercial Passenger Vessel
Tax)
KFRC Chlorination System – Components are on order. Meetings with GSA will continue for
status updates. Requirement to install and verify function by January 2022.
ARPA Funding – Initial assignment of funds discussion scheduled for this meeting. Staff is
working with the Treasury Department to set up required staff functions for reporting. Due dates
for reports have been pushed until the end of November due to website issues.
Saltery Cove – MOU with Island Trails Network (ITN) completed. An archeological site has
been identified that may impact the project. Alternatives are being discussed with the state.
KIBSD – Joint meeting held 11/8 to discuss poor rating of requested funds for R&R Projects.
Staff is focusing on the Chiniak School Water Supply situation, repairs of the Main Elementary
Roof and Peterson Roof / HVAC. A statement of work will be developed to allow for a repair as
soon as possible on this facility.
Solid Waste – Alaska Waste and the KIB are meeting jointly to discuss the adaptations and
possible changes required to improve services to the Solid Waste Contract as it relates to the rate
payers, contractor, and operation of the enterprise fund.
USDA Grant / Loan Application – Submitted and review has begun. Additional information is
being requested by the USDA. After this review the applications and required documents, plans
and administrative documents will be considered for award based on community needs.
AGENDA ITEM #3.a.
Page 7 of 8
State Revolving Funds Loans – The loan application period is currently open until November
30, 2021. At this time the staff is recommending waiting for application until the USDA process
has been completed.
Projects – Three open bids are on the street currently. The Borough and Maintenance Building
Mechanical Upgrades, PKIMC Day Tank Replacement and KFRC Fume Exhaust Upgrade. Site
visits have been conducted. All close 11/16/2021.
Staff anticipates the NorthStar Elementary School Phase II Siding Project final design documents
prior to the end of November.
Manager Recruitment – Staff has prepared a contract for review and comment in tonight’s
work session. Process will continue as directed. Attorney to review contract documents prior to
further action.
Assembly members – Please return all recruitment paperwork to HR – Meagan to include Rating
Sheets, Resume’s, Recruitment paperwork.
Upcoming Items – KFRC Capital Project and Maintenance Management Discussion, Annual
Service Contracts Update and discussion, Service Area Contracts, Personnel Manual Review,
and request for update, KIB passenger and light vehicle condition list and required replacement,
presentation regarding the change of the investment strategies of the KIB, Solid Waste Contract
updates and request for modifications.
AGENDA ITEM #3.a.
Page 8 of 8
KODIAK ISLAND BOROUGH
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JOSEPH DELGADO ATTENDED
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DAMES TURNER
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MAYOR ROBERTS ATTEND ABSENT
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