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2021-10-07 Regular MeetingKodiak Island Borough Assembly Regular Meeting Bayside Volunteer Fire Department - 4606 East Rezanof Drive October 7, 20216:30 p.m. The invocation was given by Major David Davis of the Salvation Army. Mayor Roberts led the Pledge of Allegiance. Present were Mayor Bill Roberts, Assembly members Joseph Delgado, Jared Griffin, Geoffrey Smith, James Turner, and Aimee Williams. Present via teleconference was Assembly member Scott Arndt. Also present were Borough Manager Dave Conrad, Borough Clerk Alise Rice, and Deputy Clerk Lina Cruz. 1. 2. 3. 4. 5. Invocation Pledge of Allegiance Roll Call Approval of Agenda and Consent Agenda ARNDT moved to approve the agenda. VOICE VOTE ON THE MOTION CARRIED UNANIMOUSLY. Approval of Minutes 6. Citizens' Comments 7. Awards and Presentations 8. Committee Reports 9. Public Hearing 10. Borough Manager's Report Interim Borough Manager, Dave Conrad reported on the following: • ARPA Funding - On October 1, 2021, the Kodiak Island Borough was notified by the US Treasury Department that the KIB application for American Rescue Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 1 of 10 Plan Act of 2021 — Treasury's Coronavirus State and Local Fiscal Recovery Funds was determined to be complete and accurate. Based on the allocation methodology the Department of Treasury processed the amount of $1,262,354.50 as the current eligible amount for the KIB request. These funds have been received and verified by the Finance Department. Staff is currently reviewing the requirements to expend these funds to comply with the act and will be presenting a list of suggested expenditures soon to the assembly for consideration and direction. • Other Funding — Staff will continue to look for additional funding both state and federal as it is announced. • Staff Work Requests — In order to ensure proper documentation and track information requests for the mayor and assembly members, I am requesting that all items be run through me and that these are made in writing. (Email or developed form) As manager it is my job to ensure that timely, accurate research is being provided. The delivery timeframe will be based on current work load of the department and that requests are being made by more than a single assembly member. • Providence Kodiak Island Health Center and Kodiak Community Health Center — Recently KIB staff have met with these two entities to discuss the adaptations required to respond to the recent pandemic and changing health care needs at the medical center location. Regular conversation and discussion of concepts results in better relationships. It is the goal of staff to continue to regularly meet to share issues in a more real time setting to better react to the ever-changing needs of all the entities involved. Current discussions have been associated with the possible expansion and adaptation of the facility to the newly adapted health care needs and standards. Finalization of the Long-term Care Lease, cost share and responsibility for the two identified fuel spills on this property, progress of the retaining wall, replacement of the generator day tanks, replacement and upgrade of the chillers associated with the HVAC. • Saltery Cove — An MOU with Island Trails is being prepared for discussion and signature. Original agreement documents signed by the KIB, and ADF&G did not include the entity that will be performing the actual work. Staff is working on understanding all associate requirements and commitments that the grant authorization requires. • CDD Interim Director — This item is before you tonight as the code requires the manager to have the consent of the assembly to consider a single employee to act as a director for two departments. Currently in discussion to hire a consultant so the KIB can retain platting authority and avoid any transfer of this authority to the State Department of Natural Resources. • KIBSD — Meetings are scheduled for later this week and next to discuss maintenance priorities with KIBSD. CIP list is vast, and this team will strive to prioritize the top projects currently before us regarding school maintenance and repairs. Committee results will be compiled and forwarded for review prior to the planned joint meeting. • Solid Waste Issues — In discussions with Alaska Waste regarding billing and lack of payment by rate payers, hazardous driving/service to narrow hill areas. Reinforcement of latches on dumpsters to keep bears out. Costs and manhours are being analyzed by staff for the labor being spent on large item pickup and trash from dumpsters left open and bears getting in. Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 2 of 10 U, • Manger Recruitment — The manager recruitment has been assigned to a single staff member. This staff member is out of state in training this week. Packets will be prepared and provided upon return. • Upcoming Items — KFRC presentation, Landfill updates, Service Area Contracts, E911, Personnel Manual Review and request for update. 11. Messages from the Borough Mayor Mayor Roberts reported on the following: • The ongoing COVID cases in Kodiak. • Congratulated the elected officials following the October 5, 2021, Election. • The intention to delve deeply into the KIB budget this coming year. • He stated that the assembly would address the budget department -by - department. He also stated the importance of funding Restoration and Renovation for borough facilities. 12. Consideration of Calendar - Unfinished Business 13. Consideration of Calendar - New Business 13.A. Contracts Contract No. FY2022-07 Approval Of One Year Contract With Matson Navigation Company Of Alaska, Inc. For Metals Processing And Hauling. ARNDT moved to approve Contract No. FY2022-07 with Matson Navigation Company for metals processing and hauling. The Engineering & Facilities Department received the notice to renew our contract with Matson Navigation Company on September 13, 2021. Matson is the sole source company for this contract, they are the only shipping company in Kodiak that has the means to handle this regular large metals shipment. Matson provides the required open top containers for the consolidation and shipment of ferrous recycle metals. Matson's rate for metals shipping is calculated per cubic yard (CY). The current contract FY2021-10 the charge is $3.00 per CY. Under the proposed new contract FY2022-07 the charge is $3.08 per CY. During the current contract term, the KIB Landfill shipped 9,756 CY (13 containers), for a total cost of $29,269.96. E/F staff has estimated the total shipped to be 15,000 CY at $3.08 per CY, for a total of $46,200. This estimate includes charges for any damages that may occur to the open top container. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Arndt, Delgado, Griffin, Smith, Turner, and Williams. Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 3 of 10 2. Contract No. FY2022-09 With Jacobs Engineering For Design, Bidding Support, And Services During Construction For The Leachate Treatment Plant Upgrades Project. _J ARNDT moved to authorize the Interim Borough Manager to execute Contract No. FY2022-09 with Jacobs Engineering in an amount not to exceed $190,500. This is a contract with Jacobs Engineering for additional design services, bid phase support, and services during construction for the Leachate Treatment Plant Upgrades project. The goal of this project is to install a pretreatment system for the Leachate Treatment Plant (LTP) to address persistent calcification issues. This will include a metal building addition to the existing facility and installation of new process equipment. The Assembly previously approved Contract FY2022-01 with Jacobs to provide 80% and 100% design submittals for this project. This contract includes the following: • Additional Design Costs - The cost for design exceeded original estimates due to the compressed timeline required to meet Alaska Department of Environmental Conservation requirements, and additional design efforts required to increase the size of the building addition. • Bid Phase Support - During the bid process Jacobs will provide responses to bidders questions and prepare addendum as necessary. • Services During Construction - During the construction process Jacobs will review engineering submittals, respond to Request for Information from the construction contractor, and perform periodic site visits and inspections. These services will be billed on a time and materials basis. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Delgado, Griffin, Smith, Turner, Williams, and Arndt. 13.B. Resolutions Resolution No. FY2022-10 Agreeing To The Terms Of The Alaska Opioid Settlements Negotiated By The State Of Alaska And Approving The Participation In The Alaska Opioid Settlement Agreements By The Kodiak Island Borough. DELGADO moved to adopt Resolution No. FY2022-10 Agreeing To The Terms Of The Alaska Opioid Settlements Negotiated By The State Of Alaska And Approving The Participation In The Alaska Opioid Settlement Agreements By The Kodiak Island Borough. Summary of State/Subdivision Agreements with Johnson & Johnson and 3 Major Pharmaceutical Distributors BACKGROUND: Opioid overdose deaths are rising dramatically, and resources are desperately needed to address the epidemic. Since late 2019, the opioid addiction crisis in the US has resurged with a vengeance. During 2020, 93,000 Americans have Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 4 of 10 died from opioid overdoses — the most ever in a single year, and more than have ever died in a single year in the US from either car crashes or gun violence. For several years, states and local governments have been investigating and litigating against many companies to hold accountable those responsible, change pharmaceutical industry practices for the better, and recover much- needed funds to address the crisis. A broad coalition of states and subdivisions have now reached final agreements with four of these companies: one agreement is with opioid manufacturer Johnson & Johnson and the other is with the three major pharmaceutical distributors — AmerisourceBergen, Cardinal Health, and McKesson. These agreements resolve legal claims against those companies stemming from actions that fueled the opioid addiction epidemic, The agreements will be effectuated through consent orders entered in each participating state. Other companies are not covered by these agreements and remain under active investigation and litigation. FINANCIAL TERMS: The agreements with the distributors and Johnson & Johnson provide for payments totaling $26 billion, with more than $23.9 billion available to fund efforts to stem the crisis. The funding will be distributed to states according to the allocation agreement reached among states. Subdivisions can only participate in the agreement if their state participates. Distribution within states can be handled either through an intrastate agreement between the state and its subdivisions or through the default arrangement set forth in the agreements with the companies. States and local governments must use the funding to support any of a wide variety of strategies to fight the opioid crisis. There are also provisions for the companies to compensate attorneys who have pursued opioid litigation on behalf of states and local governments. Because of the unprecedented nature of this nationwide litigation — involving thousands of separate cases and tens of thousands of potential governmental claimants – there are several provisions calibrated to incentivize maximum participation by state and local governments and to incentivize early participation. They include the division of payments into base and bonuses, with bonuses based on participation levels. There are also suspension, offset, and look -back provisions that are intended to deter future opioid litigation against the companies by state and local governments, now that they have agreed to a $26 billion global nationwide settlement. These deterrents are substantially lessened in the event certain high levels (tiers) of participation by states and subdivisions are achieved nationally. A state and its subdivisions can secure maximum payments for themselves by achieving full resolution (subject to certain minor exceptions) of the actual and potential opioid -related legal claims by public entities within the state. This can be done through voluntary opt -ins, legislation, judicial action, or any combination of these methods that resolves existing claims and bars future claims. States that are unable to achieve complete resolution can still receive substantial payments by resolving a significant portion of current and future subdivision Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 5 of 10 claims. The partial payment percentages are set forth in sliding scales based on participation levels among subdivisions within a state. The first payments will be received by state and local governments by July 1, 2022 assuming a critical mass of jurisdictions join. Johnson & Johnson's payout will be over 8 years; the distributors will pay their amount over 17 years. The states and local governments will receive 40% of the combined payout within the first 5 years, assuming the maximum bonus is achieved. INJUNCTIVE TERMS: In addition to the financial components, the agreements will also subject the companies to court orders requiring them to make major changes in how prescription opioids are distributed and sold, with far more oversight and accountability throughout that process, including an independent monitor, to help prevent deliveries of opioids to pharmacies where diversion and misuse are occurring. The distributors will also be required to establish and fund a centralized, independent clearinghouse using detailed data analytics to keep close track of opioid distribution throughout the country and raise red flags for suspicious orders. Johnson & Johnson will be prohibited from selling or promoting opioids. SCHEDULE: The deadline for states to sign onto the agreements is August 21, 2021. Subdivisions in participating states will then have through January 2, 2022, to join. The first payments are expected to be received by participating states and subdivisions in April 2022. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Griffin, Smith, Turner, Williams, Arndt, and Delgado. 13.C. Ordinances for introduction 13.D. Other items Presentation And Public Comment On Applying For U.S. Department Of Agriculture Funding For The Leachate Treatment Plant Upgrade And Landfill Stage 3 Closure Projects. Introduction: Engineering & Facilities Staff have met with the United States Department of Agriculture (USDA) to explore the potential for low interest loans and grants to help fund the Leachate Treatment Plant Pretreatment Upgrade and the Landfill Stage 3 Landfill Closure projects. The USDA is currently offering low interest loans at 1.75% over 40 years with the potential of a 45% grant if qualifications are met. These discussions to date have been promising. Funds that have been spent to date (design costs) may qualify as in-kind contribution to any loan or grant funding requirement through these programs. Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 6 of 10 A requirement for this application process is to provide notice to the citizenry of your intent to apply for Federal funds through a published Notice of Intent. In addition, you are required to hold a public information meeting to allow the citizenry an opportunity to become acquainted with the proposed project(s). The applicant must also post a public notice at its principal office and notify USDA of the meeting. An ad was placed in the Kodiak Daily Mirror and notice posted at the Borough Building to satisfy the noticing requirements. The presentation and public hearing at the October 7, 2021, Assembly meeting will satisfy the public information meeting requirement. The two projects relating to this application are the Leachate Treatment Plant Pretreatment Upgrade and Landfill Stage 3 Closure. A description of each project is below and preliminary design drawings for both projects are included as attachments. Leachate Treatment Plant Pretreatment Upgrade: The Kodiak Island Borough (KIB) Leachate Treatment Plant (LTP) has been experiencing scaling of equipment, tanks, and piping throughout the membrane bioreactor process. The scaling has been directly associated with the chemical changes to the leachate since the initial sampling occurred in the period from 2005 through 2008 during the Lateral Expansion design process. The calcium carbonate scaling is directly related to the release of calcium from multiple years of accepting sanitary sludge that was augmented with large quantities of lime for the vector control required for the transport of the sludge product. As part of a multiple phase study to resolve the issues associated with the Landfill and LTP permit requirements, staff has initiated investigation of pretreatment options to remove the scale from the leachate. Laboratory testing and geochemical modelling have shown that the calcium carbonate scaling can be reduced by inducing precipitation to occur before the treatment process through aeration of the leachate in an aeration tank. Aeration will also provide mixing energy to prevent precipitation from falling out of solution and settling as well to provide a more uniform leachate to the treatment process. This project will construct a 50'x32' addition to the existing LTP to house new equipment. A lamella plate clarifier will be inserted into the treatment process to capture the precipitated solids in the leachate. This will be located after aeration tank and before the fine screens. This equipment will help rectify the scaling problem that has been seen throughout the plant. Past sampling also shows that the leachate is phosphorus deficient. This is an important nutrient in the biological treatment process that allows nitrification/denitrification to occur. Pretreatment aeration will change the chemistry of the water and will allow phosphoric acid to remain in a dissolved, bioavailable form. Bench scale testing with leachate and parallel investigation with a water quality model have demonstrated this potential. Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 7 of 10 Initial construction cost estimate based on 30% design was $1,255,335 but that was for a 30'x32' building addition. With the increase in building size the current estimated construction cost is expected to increase roughly 30-40%. Landfill Stage 3 Closure: As part of a multiple phase study to resolve the issues associated with the Landfill and LTP permit requirements, staff has initiated investigation of final closure and interim closure on the sides and top portion of the landfill to minimize the amount of rainwater that converts to leachate. The interim cover section will be installed on approximately 2.6 acres on the current top deck of the existing landfill. When closure is performed the rainwater is converted to stormwater using multiple layers of impermeable liner material, gravels, and plant materials for stability. One inch of rain falling on 1 acre of ground is equal to about 27,154 gallons. By converting the rain to stormwater this will lessen the amount of the leachate that needs to be treated. This should also help with the leachate lagoon overflow issues seen during heavy rain events. This portion of the landfill is at a current height of 250 feet with the maximum height allowance of 270 feet. The current fill plan for the landfill is to eventually develop the unfinished portion of Future Cell #2. Afterthe two designed cells are filled to the point where the municipal solid waste at the top of the landfill would begin reaching the 250 foot elevation level, the interim closure liner material would be removed to allow the fill height to reach the permitted design height of 270 feet. The estimated construction cost based on 30% design is $1,132,331. 2. Confirmation Of Mayoral Appointment To The Solid Waste Advisory Board, Mr. Robert Williams. ARNDT moved to confirm the mayoral appointment of Mr. Robert Williams to the Solid Waste Advisory Board Retail Business Representative seat to expire December 2021. On September 4, 2021, the Clerk's office received Mr. Williams application for the Solid Waste Advisory Board Retail Business Representative seat that expires December 2021. Mr. Williams currently resides at 1522 Mission Rd. No. 3, this qualifies him for a borough seat as his residence is outside of the City of Kodiak city limits. He has resided in the borough for 2 months. He is not currently serving on other Boards, Commission, or Committees. He does not currently belong to or participate in any other organizations. Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 8 of 10 Ij His main reason for applying: "To help focus on one of Walmart's core beliefs which is to lead through sustainable practices and to help make decisions that further that core belief." Pursuant to KIBC 2.100.070 (A.6) and 4.15.070 (A.7) Other than by expiration of the members term, the assembly shall declare a seat vacant when a member of the board misses three consecutively held regular meetings and is not excused. Mr. Williams has indicated that he is available to attend regular board meetings. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Smith, Turner, Williams, Arndt, Delgado, and Griffin. 3. Consent For Assessing Director, Seema Garoutte, To Fill The Vacant Community Development Director Position On An Interim Basis. DELGADO moved to consent for the Acting Interim Borough Manager, Dave Conrad, to appoint Assessing Director, Seema Garoutte, to serve as the interim Community Development Director until June 30, 2022 or until a new director is hired, whichever is first. She will receive a pay increase of two steps during this period effective September 1, 2021. Assessing Director, Seema Garoutte, has been the primary supervisor of the Community Development Department since June 3, 2021. Kodiak Island Borough Code 2.45.040.(B) Borough Manager General Provisions states: "Each department shall be administered by a director appointed by and subject to the direction and supervision of the manager unless provided otherwise by law. With the consent of the assembly, the manager may serve as the director of one or more departments. With the consent of the assembly, the manager may appoint one person as the director of two or more departments." Ms. Garoutte will be compensated at a higher rate of pay for serving as director of two departments. She is currently at Step D, E82 to Step F, E82 effective September 1, 2021. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Turner, Williams, Arndt, Delgado, Griffin, and Smith. 14. Citizens' Comments • David Conrad • Seema Garoutte 15. Assembly Member' Comments Assembly member Williams congratulated newly elected officials. She also encouraged local bear viewers to pull completely off the road and practice safety Kodiak Island Borough Assembly Regular Meeting Minutes October 7, 2021 Page 9 of 10 around the animals. She further expressed her appreciation regarding the completion of the Providence retaining wall renovation. • Assembly member Smith commented on the opportunity for updated accounting software to make the budgeting process easier and more transparent in the coming year. • Assembly member Turner thanked the community for voting. • Assembly member Griffin congratulated the newly elected members of the assembly. • Assembly member Delgado thanked staff for their work in supporting assembly members. He also thanked assembly member Arndt for his willingness to quarantine after his close contact. • Assembly member Arndt congratulated the newly elected members of the assembly. He also thanked the manager for his detailed report. 16. Adjournment Mayor Roberts adjourned the meeting at 9:12 p.m. KODIAK ISLAIO BOROUGH r ATTEST: Bill Roberts, May r Kodiak Island Borough October 7, 2021 Alise L. Rice, Borough Clerl �0 3 'Qt�4S A�1� K Assembly Regular Meeting Minutes Ll Page 10 of 10