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2023-01-19 Regular MeetingKodiak Island Borough Assembly Regular Meeting Agenda Assembly Chambers Thursday, January 19, 2023, 6:30 p.m. This meeting is open to the public and will be broadcast on KMXT 100.1 FM and on the Borough's YouTube Channel. Meeting packets are available onlin e. Please subscribe to get meeting notifications when meeting packets are published. Page 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. STATEMENT OF LAND ACKNOWLEDGEMENT We are gathered on the traditional homeland of the Sugpiaq/Alutiiq people and we acknowledge the 10 tribes of the Kodiak Alutiiq Region. We recognize the Alutiiq culture that enriches our community to this day. 4. ROLL CALL 5. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed marked with an asterisk (*) are considered to be routine and non-controversial items by the Assembly and will be approved by one motion. 6. *APPROVAL OF MINUTES A. January 5, 2023, Regular Meeting 2023-01-05 RM Minutes 3 - 12 7. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202 This section is for general comments and for agenda items NOT scheduled for public hearing. 8. AWARDS AND PRESENTATIONS 9. COMMITTEE REPORTS 10. PUBLIC HEARING A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska Agenda Item Report - Pdf 13 - 49 Page 0 of 77 11. BOROUGH MANAGER’S REPORT 12. MESSAGES FROM THE BOROUGH MAYOR 13. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS 14. CONSIDERATION OF CALENDAR - NEW BUSINESS 14.A. CONTRACTS 14.B. RESOLUTIONS 14.C. ORDINANCES FOR INTRODUCTION 14.D. OTHER ITEMS 1. Confirmation Of Mayoral And Assembly Appointments To The Different Boards, Committees, and Commissions Agenda Item Report - Pdf 50 - 72 2. Good Cause Determination For A Senior Citizen Exemption, Applicant: Mr. Kyle Crow Agenda Item Report - Pdf 73 15. CITIZENS' COMMENTS. 1-907-486-3231 or Toll Free 1-855-492-9202. (Limited To Three Minutes Per Speaker) 16. ASSEMBLY MEMBERS’ COMMENTS 17. EXECUTIVE SESSION A. Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive Agenda Item Report - Pdf 74 - 75 18. ADJOURNMENT 19. INFORMATIONAL MATERIALS 19.A. MINUTES OF OTHER MEETINGS 19.B. REPORTS 1. Records Destruction Report January Records Destruction Report 76 - 77 ________________________________________________________________________ This meeting is open to the public and will be broadcast on KMXT 100.1 FM and on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202. Page 1 of 77 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 1 of 10 Kodiak Island Borough Assembly Regular Meeting January 5, 2023 A regular meeting of the Kodiak Island Borough Assembly was held on January 5, 2023, in the Borough Assembly Chambers. The meeting was called to order at 6:30 p.m. Staff present were Interim Borough Manager David Conrad, Borough Clerk Nova Javier, and Assistant Clerk Irene Arellano. 1. INVOCATION The invocation was given by Major David Davis of the Salvation Army. 2. PLEDGE OF ALLEGIANCE Mayor Williams led the Pledge of Allegiance. 3. STATEMENT OF LAND ACKNOWLEDGEMENT Mayor Williams We are gathered on the traditional homeland of the Sugpiaq/Alutiiq people and we acknowledge the 10 tribes of the Kodiak Alutiiq Region. We recognize the Alutiiq culture that enriches our community to this day. 4. ROLL CALL Present were Mayor Aimee Williams, Assembly members Scott Arndt, Joseph Delgado, Jared Griffin, Larry LeDoux, Scott Smiley, Geoffrey Smith, and James Turner. 5. APPROVAL OF AGENDA AND CONSENT AGENDA ARNDT moved to approve the agenda and the consent agenda. SMILEY moved to amend the agenda by removing Agenda Item 14.C.2 Ordinance No. FY2023-13 Amending Kodiak Island Borough Title 17 Zoning, Chapter 180 Signs, Section 17.180.010 Signs, Description and Intent to Require Zoning Compliance Permits for Certain Signs off the agenda. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Arndt, Delgado, Griffin, LeDoux, Smiley, Smith, and Turner. VOICE VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY. 6. *APPROVAL OF MINUTES (Approved under consent agenda) A. Regular Meeting Minutes of December 1, 2022, and Special Meeting Minutes of December 15, 2022 7. CITIZENS' COMMENTS The following spoke under citizen’s comments: • Alan Schmitt • David Conrad AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 3 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 2 of 10 8. AWARDS AND PRESENTATIONS A. Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award Mayor Williams highlighted the award received by the Kodiak Island Borough as a recognition for its outstanding budget content and presentation. The GFOA's Distinguished Budget Presentation Award represents a significant achievement. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation. B. Certificate Of Recognition For Budget Preparation In connection to the Distinguished Budget Presentation Award granted to the Kodiak Island Borough, a Certificate of Recognition for Budget Presentation is also presented to the Finance Department who was primarily responsible for having achieved the award. Mayor Williams presented the certificate of recognition to Finance Director Dora Cross. 9. COMMITTEE REPORTS - None 10. PUBLIC HEARING 1. Ordinance No. FY2023-12 Amending Kodiak Island Borough Title 15 Buildings And Construction, Chapter 40 Building And Lot Numbering, Section 15.40.080 Procedure For Addressing Newly Created Lots SMILEY moved to adopt Ordinance No. FY2023-12. KIBC Code 15.40.080 (D) currently calls for lots to be addressed at the time of the preliminary plat. KIBC 15.40.080- Procedure. A. Kodiak Island Borough GIS is responsible for assigning addresses and maintaining address information. B. Addresses will be implemented within 30 days upon receipt of an E911 address application, along with any other required or relevant information. C. E911 address application shall be made available on the borough website and/or in borough offices. D. Addresses for newly created lots will be assigned during the preliminary plat review process. Community Development would like to change this portion of procedure to state that the address would be assigned either after a driveway permit has been issued, a permit for construction has been issued or upon a request from the owner after a plat has been recorded, whichever comes first. AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 4 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 3 of 10 Items considered for this change: 1. If an abbreviated plat was approved or a preliminary plat was filed, and the subdivision was approved through the Planning and Zoning Commission, the owner of the property would have 2 years (24 months) to record a final plat, per KIBC 16.50.010- Final plat procedure. "A. The final plat shall comply with the requirements of this chapter and shall be submitted to the community development department director within 24 months of preliminary plat approval." 2. At the time of preliminary approval by the Planning and Zoning Commission, there can be a multitude of conditions that would need to be addressed before a final plat could be recorded, which could effect the addressing of lots. 3. More times than one would think, plats are left unrecorded after the 24 month period and have to be resubmitted. Typically, this is due to changes that were found that needed to occur prior to recoding. This often effects addressing, causing lots to be addressed multiple times. Many times, plats are not submitted for final review/recording. 4. Many owners take advantage of the abbreviated plat option KIB offers. This option has been used many times for the same lot, which caused for the same parcels to be readdressed multiple times in a short time period. All of the above instances cause erroneous address notifications to be sent to multiple agencies, including Police Public Safety Answering Point (PSAP), City of Kodiak Police Department, Alaska State Troopers, City of Kodiak, Women's Bay, and Bayside Fire departments and could effect E911 addressing, which could cause errors in emergency situations. Community Development believes this code change makes more sense for addressing properties, so that properties don't have to be addressed multiple times, correct information is given one time, and this gives clear direction to GIS for addressing (additionally the GIS position in CDD is vacant at this time.) Mayor Williams closed the regular meeting and opened the public hearing. Hearing and seeing none, Mayor Williams closed the public hearing and reconvened the regular meeting. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Delgado, Griffin, LeDoux, Smiley, Smith, Turner, and Arndt 11. BOROUGH MANAGER’S REPORT Dave Conrad, Interim Borough Manager, reported on the following: • Joint Use Agreement Meeting – The KIB staff is in contact with two independent pool contractor/consulting firms to potentially hire to perform a site visit. The costs are anticipated to be in the $10,000 to $15,000 range. Both firms are willing to work with the KIB to prepare a report that can be turned into an RFP if required. AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 5 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 4 of 10 Manager’s Department • Manager Recruitment - Copies of manager applicant evaluations are being returned. Tabulation will occur next week. Results will be forwarded to the assembly members for future direction. • LATCF Funds - Completed and signed for the U.S. Department of the Treasury Local Assistance and Tribal Consistency Fund for the obligation of $4,787,173.04 this week. A confirmation email has been received reporting the acceptance of the application and award. • KIB Facility - Lease discussions have begun with the City of Kodiak specific to the 710 Mill Bay Road Facility. • 717 Egan Way Lease - Proposer has submitted a request for consideration of alterations to the lease. These are being reviewed and conversations will be held next week. • Larsen Bay School - The Manager’s staff is planning to travel to Larsen Bay to inspect and provide a repair list for items that were identified and not repaired prior to the signatures being finalized on the facility transfer to the Larsen Bay Tribal Council. Engineering and Facilities Department • The Landfill will be closed January 16 to the public for Martin Luther King Jr. Holiday. • Vehicle Procurement Proposal - Small vehicle RFP has been completed and reviewed by the attorney. The request will be published on the KIB website tomorrow and in the Anchorage Daily News next week. Anchorage auto dealers will be contacted regarding this advertisement and bid opportunity. Pick-up truck RFP will be prepared and completed for advertising next week. • Auto Repairs - The auto maintenance and repair contract bid opening was held on Wednesday, November 21. One responsive successful bid was received. The assembly is scheduled to vote on this item tonight. • KFRC Carpet Replacement - This project is completed. Substantial completion paperwork has been signed. Awaiting final approval to bill for the work. • KFRC Fume Hood Upgrade – This project is functionally completed. Work required is for the calibration and balancing of the fume hood systems. Awaiting scheduling from the contractor. • Landfill Rock Project – Brechan Construction has discontinued work for the winter. Anticipate an April restart. 8,423.2 cubic yards Stockpile #1(drain rock), 15,267.7 cubic yards Stockpile #3(3 inch minus cover) completed to date. Bank yards remaining 32,733 cubic yards remaining. • Leachate Treatment Plant – The delivery of the metal building package is completed. Awaiting final structural calculations for submission and review prior to permit being issued. Contractor proposed start date is mid-January. • Bayside Classroom Addition – A request has been made for the preliminary estimate to install a commercial sprinkler in the existing classroom and proposed addition has been requested. This evaluation will be used to update the estimated cost for the design that will be chosen for recommendation by the Fire Service Area #1 Board. • OSHA Voluntary Compliance Visit – Awaiting information regarding a planned site visit by OSHA Voluntary Compliance the week of January 23rd. Finance/IT Department AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 6 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 5 of 10 • FY2024 Budget Preparation – Packets have been forwarded to the Service Area Boards and Staff for the preparation of the upcoming budget discussions. Boards are scheduling upcoming required meetings. • PATS Software – Property Assessment and Taxation Software - RFP is being advertised with a bid date of February 28, 2023. • The Popular Report has been submitted to the GFOA. Preparing to send to the printer and copies will be distributed upon receipt. • The department is short-staffed due to illness and vacations. Dora will be out on medical leave for three weeks beginning January 9, 2023. • Annual Financial Statement has been prepared and is out to the printer. Copies will be distributed upon receipt. • Staff has been informed that additional Opioid Settlement Funds have been identified and will require approval in April 2023. Assessing Department • Property Valuation – Property review and inspection for valuation will be completed next week in the city. List of Pending Items for Discussion • City of Kodiak - E911 System and compensation o Borough Building Remodel or Upgrades o Joint support and participation in the development of the CIP List (Federal emphasis) • Disposition of Closed School Facilities – Allowable Scope for Current Staff • Continued update of the Personnel Manual • ARPA Funding Reporting is continuing • Grant Application and Local Match Funding – Approval for application prior to expending staff time. • Leases – City of Kodiak Borough Building Lease, Teen Court, Red Cross, Fairgrounds, KISA, Chiniak Library, and Long-Term Care Center • Major Maintenance Funding for Facilities • Disposition of Mental Health Buildings – Bid received • Solid Waste Collection Contract Modifications • Service Area Contracts • Annual Contracts • Additional Methods to Reward Employees in Personnel Manual • Vehicle Replacement • Funding opportunities for road repairs and improvements 12. MESSAGES FROM THE BOROUGH MAYOR Mayor Williams wished everyone a Happy New Year and congratulated the Finance Department for their hard work. She also noted that the Borough Clerk sent out a form for the Assembly member to fill-out when requesting agenda items to be added on the agenda. Paper copies were also provided on the dais. The Consolidation Committee has a meeting coming up and she reminded those on the committee to get in contact with the Chairperson Griffin to make a quorum to get the Consolidation Committee update report approved. 13. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS - None AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 7 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 6 of 10 14. CONSIDERATION OF CALENDAR - NEW BUSINESS 14.A. CONTRACTS 1. Contract No. FY2020-08B Amending Contract No. FY2020-08 By Adjusting The Fee To The Lobbying Services Agreement With Hickey & Associates SMILEY moved to authorize the manager to execute Contract No. FY2020-08B by adjusting the fee to the lobbying services agreement with Hickey & Associates. Contract No. FY2020-08 concludes at the end of the 2023 calendar year. In 2022, Mr. Hickey voluntarily offered to reduce his annual cost from $45,000 per contract year to $40,000 understanding the financial burdens being placed on the Kodiak Island Borough due to various funding changes. Other than in 2022, the annual contract fee has been $45,000 since 2015. Mr. Hickey is respectfully requesting consideration to restore the annual payment to $45,000 for the remaining year of the existing contract. Mr. Hickey voluntarily requested and offered to have a rate reduction. This indicates his agility to analyze the financial burdens of his clients and adjust appropriately. Mr. Hickey performs valuable services for the Kodiak Island Borough and has done so consistently for a number of years. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Griffin, LeDoux, Smiley, Smith, Turner, Arndt, and Delgado. 2. Contract No. FY2023-17 Approval Of Two-Year Contract With RTS Auto For Auto Repairs And Tire Services SMILEY moved to authorize the Manager to award Contract No. FY2023-17 with RTS Auto for a two-year term with three additional one-year extension options for auto repairs and tire services. The Engineering and Facilities Department (E&F) is tasked with maintaining the vehicles the Borough owns. The previous annual contract ended when the contractor closed its shop approximately the middle of June 2022. When the E&F staff found out about the closure, they prepared a bid and it was published on May 17, 2022, August 17, 2022, and again on October 31, 2022, all of which received no responses. E&F staff prepared a new bid and published it on Monday, December 5, 2022. There was one submission. After review of the submission, E&F determined that RTS Auto is a responsible bidder and; therefore, the best choice to award the bid to. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: LeDoux, Smiley, Smith, Turner, Arndt, Delgado, and Griffin. 14.B. RESOLUTIONS AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 8 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 7 of 10 1. Resolution No. FY2023-18 Adopting An Alternative Allocation Method For The FY23 Shared Fisheries Business Tax Program And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In FMA 13: Kodiak Area SMILEY moved to adopt Resolution No. FY2023-18. The State of Alaska, Department of Commerce, Community and Economic Development's Shared Fisheries Business Tax Program was created in 1990 to help municipalities impacted by the effects of the rapidly expanding offshore fish processing industry by collecting a tax from fish processors and sharing the collected taxes with affected municipalities. Applications must be submitted annually by municipalities to receive an allocation from the program. This year the deadline is February 15, 2023. The Kodiak Island Borough, along with the other municipalities in the FMA 13: Kodiak Area, have agreed to use an alternative allocation method instead of the standard allocation method. For the FY2023 Shared Fisheries Business Tax applications, the agreed to alternative allocation method calculation for FMA 13: Kodiak is: • 50% of the allocation is shared equally between all municipalities in the area • the remaining 50% of the allocation is shared on a per capita basis • Kodiak Island Borough's population is reduced by the population of the cities of Akhiok, Kodiak, Larsen Bay, Old Harbor, Ouzinkie and Port Lions The total calculated allocation to the Kodiak Area FMA is $247,414.10 (based on FY22 data). The Borough's calculated share of Business taxes is $81,109 and Landing Tax is $1,964, for a total of $83,074. In FY22, the Borough received a total of $49,523. This resolution, indicating the assembly has approved the Alternative Allocation Method, is a required attachment to the FY2023 Shared Fisheries Business Tax Program application. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Smiley, Smith, Turner, Arndt, Delgado, Griffin, and LeDoux 14.C. ORDINANCES FOR INTRODUCTION 1. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska SMILEY moved to advance Ordinance No. FY2023-02B to public hearing at the next regular meeting of the Assembly on January 19, 2023. Beginning in 2017, the Governor’s budgets reduced or eliminated appropriations for the School Construction Debt Reimbursement Program. AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 9 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 8 of 10 Reimbursement Reductions: • 2017 reduced by 25% or $1,015,079 • 2018 reduced by 0% • 2019 reduced by 0% • 2020 reduced by 50% or $2,712,401 • 2021 reduced by 100% or $5,336,799 • 2022 reduced by 63% or $3,249,012 Since reductions to the reimbursement program were made after the Borough adopted their budget, taking the reductions into consideration when calculating the annual mill rates was not possible. To fill the gap in funding, other funds had to make up the difference so our debt service payments could be made. Funds contributing money to the Debt Service fund to make bond payments: • General Fund $5,319,272 • KIBSD (Education Support) $1,632,815 • Facilities Fund $2,213,366 • Renewal & Replacement $1,574,487 At the close of FY2022, the State of Alaska approved CCS HB 281 which appropriated an additional $220 million of funding to the School Construction Debt Reimbursement Program. This appropriation was enough to reach back and fully fund the unpaid reimbursements from 2017, 2020, 2021 and 2022 and in late August the Borough received $12,313,291 of that funding. In recognition of the receipt of those makeup reimbursement funds, this ordinance seeks to repay the funds that contributed money to cover the shortfall in the Debt Service fund and retain the current fund status as an IRS approved Bona Fide Debt Service Fund. One of the contributors to the shortfall, KIBSD, is not eligible to receive a direct reimbursement since a payment to them would violate the State's rules for local support and could count against them for future federal and state funding. So, as an alternative, staff is recommending that the $1,632,815 they contributed be split between the needed school roof repairs on East Elementary and North Star Elementary ($816,407.50 to each). Since the remaining $1,573,351 reimbursement we received exceed the contributions from other funds (some years the mill rate was increased with the expectation that less than full reimbursement funding would occur thereby reducing the need for other contributions), staff is recommending that amount be allocated as follows: • $700,000 to the East Elementary School Roof Repair project, and • $700,000 to the North Star Elementary Roof and Skylight Repair project, and • $173,351 be allowed to stay in the Debt Service fund (estimated fund balance at year-end $230,364 which is within IRS balance tolerances). AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 10 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 9 of 10 ARNDT moved to amend Ordinance No. FY2023-02B by returning $560,000 to the renewal and replacement fund. ROLL CALL VOTE ON MOTION TO AMEND FAILED FIVE TO TWO VOTES: (Noes) Smith, Turner, Delgado, LeDoux, and Smiley; (Ayes) Arndt and Griffin ROLL CALL VOTE ON THE MAIN MOTION CARRIED UNANIMOUSLY: Turner, Arndt, Delgado, Griffin, LeDoux, Smiley, and Smith 14.D. OTHER ITEMS 1. Declaring A Seat Vacant On The Womens Bay Service Area Board (Mr. Jacob Castonguay) SMILEY moved to accept the resignation of Mr. Jacob Castonguay from the Womens Bay Service Area Board effective December 2, 2022. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Arndt, Delgado, Griffin, LeDoux, Smiley, Smith, and Turner 15. CITIZENS' COMMENTS - None 16. ASSEMBLY MEMBERS’ COMMENTS • Assembly Member Turner had no comment. • Assembly Member Griffin wished everyone a Happy New Year. • Assembly Member Smith had no comment. • Assembly Member Arndt had no comment. • Assembly Member LeDoux had no comment. • Assembly Member Smiley noted that he also had similar sewage issues at his home. He agreed with Interim Manager Conrad on how well the City employees remedied the situation. 17. EXECUTIVE SESSION 1 Assembly To Discuss The Next Steps To Take On The Manager Hire Which May Include Discussion Of The Borough Manager Applicants SMILEY moved to convene into executive session to discuss the next steps to take on the manager hire which may include discussion of the borough manager applicants under the authority of KIBC 2.30.030(f)(1)(c) for the purpose of discussing matters which may tend to prejudice the reputation or character of a person, who has been notified of the potential executive session. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Delgado, Griffin, LeDoux, Smiley, Smith, Turner, and Arndt SMILEY moved to invite the Mayor and Assembly members into executive session. AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 11 of 76 Kodiak Island Borough January 5, 2023 Assembly Regular Meeting Minutes Page 10 of 10 VOICE VOTE ON MOTION CARRIED UNANIMOUSLY After the vote, Mayor Williams recessed the special meeting and convened the executive session at 7:06 p.m. Upon returning from the executive session, Mayor Williams reconvened the special meeting at 7:30 p.m. and announced that no action was taken as a result of the executive session. 18. ADJOURNMENT WILLIAMS moved to adjourn the meeting at 7:30 p.m. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY KODIAK ISLAND BOROUGH ATTEST: Aimee Williams, Borough Mayor Nova M. Javier, MMC, Borough Clerk AGENDA ITEM #6.A. January 5, 2023, Regular Meeting Page 12 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough SUBJECT: Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska ORIGINATOR: Dora Cross, Finance Director RECOMMENDATION: Move to adopt Ordinance No. FY2023-02B. DISCUSSION: Update (12/29/22 Work Session Requests) Assembly requested the $3,032,815 allocated to the two school roofing projects be re-allocated to the Renewal & Replacement fund ($2,472,815) and the Borough Vehicle Replacement project ($560,000). Original Beginning in 2017, the Governor’s budgets reduced or eliminated appropriations for the School Construction Debt Reimbursement Program. Reimbursement Reductions: • 2017 reduced by 25% or $1,015,079 • 2018 reduced by 0% • 2019 reduced by 0% • 2020 reduced by 50% or $2,712,401 • 2021 reduced by 100% or $5,336,799 • 2022 reduced by 63% or $3,249,012 Since reductions to the reimbursement program were made after the Borough adopted their budget, taking the reductions into consideration when calculating the annual mill rates was not possible. To fill the gap in funding, other funds had to make up the difference so our debt service payments could be made. Funds contributing money to the Debt Service fund to make bond payments: • General Fund $5,319,272 • KIBSD (Education Support) $1,632,815 • Facilities Fund $2,213,366 • Renewal & Replacement $1,574,487 At the close of FY2022, the State of Alaska approved CCS HB 281 which appropriated an additional $220 million of funding to the School Construction Debt Reimbursement Program. This appropriation was enough to reach back and fully fund the unpaid reimbursements from AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 13 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough 2017, 2020, 2021 and 2022 and in late August the Borough received $12,313,291 of that funding. In recognition of the receipt of those makeup reimbursement funds, this ordinance seeks to repay the funds that contributed money to cover the shortfall in the Debt Service fund and retain the current fund status as an IRS approved Bona Fide Debt Service Fund. One of the contributors to the shortfall, KIBSD, is not eligible to receive a direct reimbursement since a payment to them would violate the State's rules for local support and could count against them for future federal and state funding. So, as an alternative, staff is recommending that the $1,632,815 they contributed be split between the needed school roof repairs on East Elementary and North Star Elementary ($816,407.50 to each). Since the remaining $1,573,351 reimbursement we received exceed the contributions from other funds (some years the mill rate was increased with the expectation that less than full reimbursement funding would occur thereby reducing the need for other contributions), staff is recommending that amount be allocated as follows: • $700,000 to the East Elementary School Roof Repair project, and • $700,000 to the North Star Elementary Roof and Skylight Repair project, and • $173,351 be allowed to stay in the Debt Service fund (estimated fund balance at year- end $230,364 which is within IRS balance tolerances). ALTERNATIVES: FISCAL IMPACT: Net effect of Ordinance: General Fund - increased by $5,319,272 Facilities Fund - increased by $2,213,366 Debt Service Fund - increased by $173,351 Borough Vehicle Replacement project - increased by $560,000 Renewal & Replacement Fund - increased by $1,574,487 $4,047,302 East Elementary Roof Repair Project - increased by $1,516,407 North Star Roof and Skylight Repair Project - increased by $1,516,408 OTHER INFORMATION: AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 14 of 76 Ordinance No. FY2023-02B Page 1 of 2 KODIAK ISLAND BOROUGH 1 ORDINANCE NO. FY2023-02B 2 3 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING 4 ORDINANCE NO. FY2023-02, FISCAL YEAR 2023 BUDGET, BY AMENDING BUDGETS AND 5 APPROPRIATIONS TO ACCOUNT FOR THE ADDITIONAL SCHOOL BOND DEBT 6 REIMBURSEMENT PAYMENTS RECEIVED FROM THE STATE OF ALASKA. 7 8 WHEREAS, the Governor’s budgets for fiscal years 2017, 2020, 2021 and 2022 did not fully 9 fund the School Debt Reimbursements Program; and 10 11 WHEREAS, State of Alaska CCS HB 281 appropriated $220 million in FY2023 to fund the 12 School Debt Reimbursement Program at full reimbursement for those years previously funded at 13 less than full reimbursements; and 14 15 WHEREAS, the Kodiak Island Borough received $12,313,291 of reimbursement funding as a 16 result of the additional appropriation, attached as Appendix A, and will reimburse $9,107,125 back 17 to the General Fund, the Facilities Fund and the Renewal & Replacement Fund to repay their 18 contributions to the Debt Service fund which enabled the Borough to make the required debt 19 service payments; and 20 21 WHEREAS, of the remaining $3,206,166 of non-reimbursable money contributed to the Debt 22 Service fund, $173,351 will be retained within the Debt Service fund and $1,516,407 will be 23 allocated to the East Elementary School Roof Repair project and $1,516,408 will be allocated to 24 the North Star Elementary Roof and Skylight Repair project , $560,000 will be allocated to the 25 Borough Vehicle Replacement project, and $2,472,815 will be allocated to the Renewal & 26 Replacement Fund. 27 28 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 29 BOROUGH that: 30 31 Section 1: This ordinance is not of a general and permanent nature and shall not become a part 32 of the Kodiak Island Borough Code of Ordinances. 33 34 Section 2: The following budget amendments are made and supplemental appropriations and 35 transfers are approved. 36 37 Fund-Department/Project # Amount of Budget Increase, Additional Appropriation & Transfer Amounts 100 General Fund $5,319,272 276 Facilities Fund $2,213,366 300 Debt Service $173,351 Version 2 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 15 of 76 Ordinance No. FY2023-02B Page 2 of 2 469 East Elementary Roof Repair/ #22004 $1,516,407 469 North Star Elementary Roof & Skylight Repair / #23002 $1,516,408 415 Borough Vehicle Replacement /#23003 $560,000 469 Renewal & Replacement $4,047,302 $1,574,487 38 39 Effective Date: This ordinance takes effect upon adoption. 40 41 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 42 THIS _____ DAY OF_________________, 2023 43 44 KODIAK ISLAND BOROUGH 45 46 ATTEST: 47 ___________________________ 48 Aimee Williams, Mayor ______________________________ 49 Nova M. Javier, MMC, Borough Clerk 50 Introduced by: Manager 51 First reading: 52 Second reading/public hearing: 53 54 VOTES: 55 Ayes: 56 Noes: 57 58 59 60 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 16 of 76 Transfered to Debt Service From:201720182019202020212022TotalsGeneral Fund (Note 1)635,113$ (492,936)$ (142,177)$ 3,016,076$ 2,303,196$ 5,319,272$ Education Support (Note 2)1,632,815$ 1,632,815$ Facilities Fund 151,858$ 65,105$ 338,982$ 830,105$ 827,316$ 2,213,366$ Renewal & Replacement1,574,487$ 1,574,487$ 786,971$ (427,831)$ 196,805$ 2,462,920$ 5,417,879$ 2,303,196$ 10,739,940$ Note 1: The 2017 loan from the General Fund was paid back with an additional Debt Service mill rate increase in 2018 and 2019. Note 2: Contribution from School District is not allowed to be returned without voilating State maximum local funding limits.HB 281 State Reimbursements of School Construction Debt Payments:Year ReimbursedFY2017 1,015,079$ FY2020 2,712,401$ FY2021 5,336,799$ FY2022 3,249,012$ Total Received 12,313,291$ Ordinance FY23‐02B Appropriation of Reimbursements:OriginalVersion 2General Fund 5,319,272$ 5,319,272$ Facilities Fund 2,213,366$ 2,213,366$ Retained by Debt Service 173,351$ 173,351$ East Elementary Roof project 1,516,407$ ‐$ North Star Roof & Skylight project 1,516,408$ ‐$ Borough Vehicle Replacement project‐$ 560,000$ Renewal & Replacement 1,574,487$ 4,047,302$ Total Disbursed 12,313,291$ 12,313,291$ Kodiak Island BoroughDebt Service Fund Transfer Activity, State Reimbursement Payments and Payment Appropriations APPENDIX A Version 2G:\Bonded Debt\Debt Reimbursement\Distribution for FY2017‐2022 additional SOA reimbursements.xlsxAGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 17 of 76 Ordinance No. FY2023-02B Page 1 of 2 KODIAK ISLAND BOROUGH 1 ORDINANCE NO. FY2023-02B 2 3 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING 4 ORDINANCE NO. FY2023-02, FISCAL YEAR 2023 BUDGET, BY AMENDING BUDGETS AND 5 APPROPRIATIONS TO ACCOUNT FOR THE ADDITIONAL SCHOOL BOND DEBT 6 REIMBURSEMENT PAYMENTS RECEIVED FROM THE STATE OF ALASKA. 7 8 WHEREAS, the Governor’s budgets for fiscal years 2017, 2020, 2021 and 2022 did not fully 9 fund the School Debt Reimbursements Program; and 10 11 WHEREAS, State of Alaska CCS HB 281 appropriated $220 million in FY2023 to fund the 12 School Debt Reimbursement Program at full reimbursement for those years previously funded at 13 less than full reimbursements; and 14 15 WHEREAS, the Kodiak Island Borough received $12,313,291 of reimbursement funding as a 16 result of the additional appropriation, attached as Appendix A, and will reimburse $9,107,125 back 17 to the General Fund, the Facilities Fund and the Renewal & Replacement Fund to repay their 18 contributions to the Debt Service fund which enabled the Borough to make the required debt 19 service payments; and 20 21 WHEREAS, of the remaining $3,206,166 of non-reimbursable money contributed to the Debt 22 Service fund, $173,351 will be retained within the Debt Service fund and $1,516,407 will be 23 allocated to the East Elementary School Roof Repair project and $1,516,408 will be allocated to 24 the North Star Elementary Roof and Skylight Repair project. 25 26 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 27 BOROUGH that: 28 29 Section 1: This ordinance is not of a general and permanent nature and shall not become a part 30 of the Kodiak Island Borough Code of Ordinances. 31 32 Section 2: The following budget amendments are made and supplemental appropriations and 33 transfers are approved. 34 35 Fund-Department/Project # Amount of Budget Increase, Additional Appropriation & Transfer Amounts 100 General Fund $5,319,272 276 Facilities Fund $2,213,366 300 Debt Service $173,351 469 East Elementary Roof Repair/ #22004 $1,516,407 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 18 of 76 Ordinance No. FY2023-02B Page 2 of 2 469 North Star Elementary Roof & Skylight Repair / #23002 $1,516,408 469 Renewal & Replacement $1,574,487 36 37 Effective Date: This ordinance takes effect upon adoption. 38 39 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 40 THIS _____ DAY OF_________________, 2023 41 42 KODIAK ISLAND BOROUGH 43 44 ATTEST: 45 ___________________________ 46 Aimee Williams, Mayor ______________________________ 47 Nova M. Javier, MMC, Borough Clerk 48 Introduced by: Manager 49 First reading: 50 Second reading/public hearing: 51 52 VOTES: 53 Ayes: 54 Noes: 55 56 57 58 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 19 of 76 APPENDIX A Transfered to Debt Service From:2017 2018 2019 2020 2021 2022 Totals General Fund (Note 1)635,113$ (492,936)$ (142,177)$ 3,016,076$ 2,303,196$ 5,319,272$ Education Support (Note 2)1,632,815$ 1,632,815$ Facilities Fund 151,858$ 65,105$ 338,982$ 830,105$ 827,316$ 2,213,366$ Renewal & Replacement 1,574,487$ 1,574,487$ 786,971$ (427,831)$ 196,805$ 2,462,920$ 5,417,879$ 2,303,196$ 10,739,940$ Note 1: The 2017 loan from the General Fund was paid back with an additional Debt Service mill rate increase in 2018 and 2019. Note 2: Contribution from School District is not allowed to be returned without voilating State maximum local funding limits. HB 281 State Reimbursements of School Construction Debt Payments: Year Reimbursed FY2017 1,015,079$ FY2020 2,712,401$ FY2021 5,336,799$ FY2022 3,249,012$ Total Received 12,313,291$ Ordinance FY23-02B Appropriation of Reimbursements: General Fund 5,319,272$ Facilities Fund 2,213,366$ Renewal & Replacement 1,574,487$ East Elementary Roof project 1,516,407$ North Star Roof & Skylight project 1,516,408$ Retained by Debt Service 173,351$ Total Disbursed 12,313,291$ Kodiak Island Borough Debt Service Fund Transfer Activity, State Reimbursement Payments and Payment Appropriations G:\Bonded Debt\Debt Reimbursement\Distribution for FY2017-2022 additional SOA reimbursements.xlsx AGENDA ITEM #10.A.Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 20 of 76 Updated 11/17/22 dlc 11/16/2022 Cash Balance 10,412,858$ Bond Principal, Interest and Arbitrage Expenses Due 7,572,618$ Less Bond Principal, Interest and Arbitrage Expenses Paid 4,808,728 (2,763,890) (Remaining Expenses for January ‐ June) Estimated Nine Months of MVRT Revenue 558,000 558,000 (Nine months of new rate collections average $62k per month) Expected State of Alaska (SOA) Debt Reimbursement Revenue 5,151,462 (At 100% reimbursement rate) Less Received SOA Debt Reimbursement Revenue 988,126 4,163,336 (Remaining amount expected from SOA) Ordinance FY2023‐02B Distributions (12,139,940) Estimated 06/30/23 Ending Cash Balance 230,364$ (Reserve Policy Required Balance is $275,000) NOTES/COMMENTS: MVRT: The MVRT rate increase passed by the assembly in December of 2020 and went into effect January of 2022. Kodiak Island Borough FY23 Estimated Debt Service Fund Year End Cash Balance We receive MVRT revenues about 45 days after the SOA collects them; i.e., revenues collected by the State in December are not paid to us until February. AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 21 of 76 De?nition of a bona ?de debt service fund (1993 IRS Regulations): 0 Is used primarily to achieve a proper matching of revenues with principal and interest payments within each bond year;and 0 Is depleted at least once each bond year,except for a reasonable carryover amount not to exceed the greater of: -the earnings on the fund for the immediate preceding bond year;or -one-twelfth of the principal and interest payments on the issue for the immediately preceding bond year. 0 Example:The bond year end is 8/1.Issue pays interest on 2/1 and 8/1 and principal on 8/1.Tax receipts are directly deposited in the Debt Service Fund from 3/1 through 6/30.Last bond year’s principal and interest payments totaled $1.2M. One-twelfth of $1.2M =$100K.Earnings on the fund last year totaled $70K.The balance in the Debt Service Fund on 8/2 of the new year is $150K.The Debt Service Fund is overfunded since the balance on the day after the bond year end was in excess of one-twelfth of last bond *If the servicefundisn_()tbona?de ( overfun ded), ACSwillneedtheinvestmentdata -for the servic e fundforthecomputation period (s). 59 75 S.Quebe c St.#205ICentennial,Colorado80111I800.672.9993|www.rebatebycs.com ARBI TRA GE COM PLIA NCE $ PEClAL ISTSl§ B o n a Fid e DebtServiceFund B O V D COM PLIA NCE SERVICES AGENDA ITEM #10.A.Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 22 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 23 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 24 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 25 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 26 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 27 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 28 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 29 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 30 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 31 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 32 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 33 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 34 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 35 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 36 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 37 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 38 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 39 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 40 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 41 of 76 AGENDA ITEM #10.A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 42 of 76 AGENDA ITEM #10.A. 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Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Am...Page 49 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough SUBJECT: Confirmation Of Mayoral And Assembly Appointments To The Different Boards, Committees, and Commissions ORIGINATOR: Irene Arellano, Assistant Clerk RECOMMENDATION: Move to confirm the following appointments: • Mayoral appointment of Mr. Jascha Zbitnoff to the Architectural/Engineering Review Board Building Code Board of Appeals seat for a term to expire December 2025 • Assembly appointment of Mr. Lee Robbins to the Board Of Equalization seat for a term to expire December 2024 • Assembly appointment of Mr. Robert Tucker to the Board Of Equalization seat for a term to expire December 2025 • Mayoral appointment of Mr. Brian Himelboom to the Parks and Rec Committee for a term to expire December 2025 • Mayoral appointment of Mr. Kent Cross to the Planning and Zoning Commission City seat for a term to expire December 2025 • Mayoral appointment of Ms. Teresa Pruitt to the Solid Waste Advisory Board seat for a term to expire December 2025 • Mayoral appointment of Mr. Lawrence Van Daele to the Solid Waste Advisory Board seat for a term to expire December 2025 DISCUSSION: The Clerk's Office advertised the impending vacancies per Borough code. Applications were received from the following: Architectural/Engineering Review Board - Three (Three-Year Term) • Jascha Zbitnoff Board Of Equalization - Three (Three-Year Terms) • Mr. Lee Robbins • Mr. Robert Tucker Parks And Recreation Committee - Three (Three-Year Term) • Mr. Brian Himelboom Planning and Zoning Commission - Three (Three-Year Term) • Mr. Kent Cross (This is a City Seat and recommendation was received from the City of Kodiak) Solid Waste Advisoy Board- Three (Three-Year Terms) • Ms. Teresa Pruitt • Lawrence Van Daele ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 50 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough 2.100.030 Appointments. Members of boards, committees, and commissions, except for members of the board of adjustment, members of the board of equalization, and elected service area board members, are ap pointed by the mayor and confirmed by the assembly unless otherwise specifically provided elsewhere in this code. An appointment not confirmed by the assembly shall not become effective. The mayor shall appoint a new applicant until an appointment is confirmed by the assembly. AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 51 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 52 of 76 Rev. by NJ On: 01/09/2023 NAME TERM CONTACT NO. EMAIL 1 Jerrol Friend (Chair) 1950 Mill Bay Rd. 2023 (907)539-1975 (907)486-9308/1975 Jerrol@friendcontractors.com 2 Jon Melin 2011 Mill Bay Road #2 2024 (907)539-1589 Jon.premier@alaska.net 3 Tyler Swanson 473 Curlew Way 2023 (907)512-5568 (907)481-1636 tys@kiha.org 4 Jascha Zbitnoff PO Box 9012 2025 (907)942-3215 jascha@brechan.com 5 2023 6 2024 7 2025 NON-VOTING EX-OFFICIOS 1 Dave Conrad Interim Borough Manager or Designee (907)486-9310 dconrad@kodiakak.us 2 Scott Arndt Assembly member (907)791-3745 (907)481-3745 Call instead of email 3 Cindy Mika School District Superintendent or Designee Cindy.mika@kibsd.org 4 Duncan Fields School Board Representative (907)317-5959 (907)486-6393 (907)486-8835 Dfields8925@gmail.com STAFF Dave Conrad E&F Director (907)486-9310 dconrad@kodiakak.us LEGISLATION: Kodiak Island Borough Code 2.125 Architectural/Engineering Review Board Kodiak Island Borough Code 15.45 Building Code Board of Appeals By Laws Adopted and Ratified on September 2, 2010 AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 53 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 54 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 55 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 56 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 57 of 76 Rev. by NJ On: 01/09/2023 NAME TERM CONTACT NO. EMAIL 1 Mark Anderson (Chair) 1124 Stellar Way 2024 (907) 481-1020 Mark.anderson@nrim.com 2 Bryan Ferris 3408 Harlequin Court 2023 (907) 654-2813 bferris@alaska.net 3 Lee Robbins PO Box 1426 2024 (907) 539-8866 Lcrobbins13@hotmail.com 4 Robert Tucker PO Box 524 2025 (907) 539-1051 Btucker61@hotmail.com 5 2023 ALTERNATES 1 Jascha Zbitnoff PO Box 9012 2023 (907) 486-3215 (907) 942-3215 jascha@brechan.com 2 2025 STAFF: KIBC 3.35.050 (E) The clerk is the ex officio clerk of the board. Nova M. Javier, MMC Borough Clerk (907) 486-9310 njavier@kodiakak.us LEGISLATION: Kodiak Island Borough Code 2.100.030 Appointments – members are appointed by the Assembly Kodiak Island Borough Code 3.35.050 (A) Membership – five regular members and two alternates Kodiak Island Borough Code 3.35.050 (D)(1) Quorum consists of four members Kodiak Island Borough Code 3.35.050 (D)(2) Voting – requires concurring vote of three members AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 58 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 59 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 60 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 61 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 62 of 76 Rev. by NJ On: 01/09/2023 NAME TERM ENDS CONTACT NO. EMAIL 1 Brian Himelbloom PO Box 1866 2025 (907)512-7070 (907)486-0822/1529 kayakadq@gmail.com 2 Ben Millstein 11188 Kalsin Dr. 2023 (907)942-3083 (907)486-2537 bmills@ak.net 3 Benjamin Vincent 418 Caroll Way #C8 2024 (907)406-0270 Btvincent2@gmail.com 4 2023 5 2023 6 2024 7 2024 EX OFFICIOS NON VOTING (KIBC 2.12.010) SEAT APPOINTEE CONTACT NO. EMAIL 1 Assembly Member Larry LeDoux PO Box 1042 (907)486-4966 Larry.ledoux@kibassembly.org 2 Plannning and Zoning Commissioner Cort Neff PO Box 8592 (907)512-7272 Cort.neff@kibplanning.org Christopher Paulson (Alternate) 1118 Steller Way (907)539-1973 Christopher.paulson@kibplanning.org 3 City Parks & Rec Director Corey Gronn 315 Maple Ave (907)654-7559 cgronn@city.kodiak.ak.us 4 State Park Ranger Ben Shryock 1400 Abercrombie Dr (907)486-6339 Benjamin.shryock@alaska.gov 5 School Rep STAFF: Seema Garoutte CDD Director (907)486-9350 sgaroutte@kodiakak.us Associate Planner Bronwyn Currie CDD Secretary (907)486-9363 Bcurrie@kodiakak.us LEGISLATION: Kodiak Island Borough Code 2.120, Parks and Recreation Committee AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 63 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 64 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 65 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 66 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 67 of 76 Rev. by NJ On: 01/09/2023 NAME (4 BOROUGH SEATS) TERM ENDS CONTACT NO. EMAIL 1 Linnea Johnson 3695 Puffin Circle 2024 (907) 299-7119 Linnea.johnson@kibplanning.org 2 Cort Neff PO Box 8592 2024 (907) 512-7272 (907) 486-6248 Cort.neff@kibplanning.org 3 Paul VanDyke PO Box 1391 2023 (907) 942-2904 Paul.vandyke@kibplanning.org 4 2025 NAME (3 CITY SEATS) TERM ENDS CONTACT NO. EMAIL 5 Kent Cross PO Box 3164 2025 (907) 942-3189 Kent.cross@kibplanning.org 6 Christopher Paulson 1118 Seller Way 2024 (907) 539-1973 Christopher.paulson@kibplanning.org 7 Alan Schmitt 3295 Woody Way Lp 2023 (907) 942-0435 (907) 486-5314 Alan.schmitt@kibplanning.org Community Development Department Staff: Seema Garoutte Interim CDD Director (907) 486-9363 sgaroutte@kodiakak.us James Dixon, Code Enforcement Officer (907) 486-9364 jdixon@kodiakak.us Bronwyn Currie CDD Secretary/Parliamentarian (907) 486-9363 bcurrie@kodiakak.us LEGISLATION: Kodiak Island Borough Code 2.105, Planning and Zoning Commission Adopted By-laws, Ratified date: April 17, 2017 AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 68 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 69 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 70 of 76 AGENDA ITEM #14.D.1.Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 71 of 76 Rev. by NJ On: 01/09/2023 NAME TERM ENDS CONTACT NO. EMAIL At-Large Seats 1 Kerry Irons PO Box 1522 2024 (907)942-0186 (907)486-5193 kerryirons@gmail.com 2 Teresa Pruitt PO Box 8609 2025 (907)942-3453 (907)486-7008 vihzuns@gmail.com 3 Lawrence Van Daele 3401 Antone Way 2025 (907)654-8822 kodiaklarry@gmail.com 4 Andie Wall (Chair) 1719 Selief Lane 2023 (907)654-1443 Andie.w.wall@gmail.com 5 2025 2 Designated Seats 6 Construction Business Representative Douglas Hogen 3099 Spruce Cape Rd 2024 (907)539-5407 (907)486-4407 dlhogen@gmail.com 7 Retail Business Representative Robert Williams 1523 Mission Rd # 3 2024 (907)854-7106 Rpwilliams1979@yahoo.com NAME (Ex Officios, Non-Voting) TERM ENDS CONTACT NO. EMAIL 1 Assembly Representative Scott Smiley PO Box 1522 October 2023 (907)942-0184 Scott.smiley@kibassembly.org 2 KIB Staff Representative Dave Conrad (907)486-9357 dconrad@kodiakak.us 3 USCG Representative Jennifer N. Nutt Environmental Division Chief (907)487-5494 Jennifer.n.nutt@uscg.mil 4 City of Kodiak Representative Corey Gronn 315 Maple Ave. (907)654-7559 (907)486-8670 cgronn@city.kodiak.ak.us 5 KHS Student Council Rep STAFF: Engineering and Facilities Department E&F Director Dave Conrad (907)486-9357 dconrad@kodiakak.us E&F Secretary Patricia Valerio (907)486-9343 pvalerio@kodiakak.us LEGISLATION: Kodiak Island Borough Code 2.145, Solid Waste Advisory Board By-laws adopted and ratified on June 2, 2010 AGENDA ITEM #14.D.1. Confirmation Of Mayoral And Assembly Appointments To The Different Board...Page 72 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough SUBJECT: Good Cause Determination For A Senior Citizen Exemption, Applicant: Mr. Kyle Crow ORIGINATOR: Seema Garoutte, Assessor/Interim CDD Director RECOMMENDATION: Move that the Senior Citizen Exemption be granted for showing good cause as stated in KIBC 3.35.030 D and direct the Assessor to accept the application as timely filed for Kyle Crow for the property located at 430 Main Street, Port Lions, AK. 99550. A yes vote will approve the application OR Move to uphold the Assessor's decision for lack of good cause shown as stated in KIBC 3.35.030 D for Kyle Crow for the property located at 430 Main Street, Port Lions, AK. 99550. A yes vote will deny the application. DISCUSSION: Applicant requested a good cause hearing be brought before the KIB Assembly to determine if he had good cause for filing a late application for Senior Exemption. A letter of notification was mailed by the KIB Assessors Office on December 1 6, 2022 to advise the applicant of the ability to give public testimony for their appeal. KIBC 3.35.030 Real and personal property exempted from taxation. D. In the event that a claimant fails to apply for a senior exemption as provided by AS 29.45.030(e) by January 15th of the assessment year for which the exemption is sought, the borough assembly for good cause shown may waive the claimant’s failure to make timely application for the exemption for that year and if the assembly finds good cause for the failure to make a timely filing the borough assessor shall accept the application, as if timely filed, subject to the provisions contained in AS 29.45.030(e). 1. A waiver may only be granted for the year in which an application is filed. A delay in filing an application shall be presumed to lack good cause for the delay and may be denied unless the assembly finds good cause for the delay as defined in subsection (D)(2) of this section. 2. Good cause” shall mean extraordinary circumstances beyond the control of the applicant, including but not limited to a medical condition or disability, impaired mental capacity, family emergency, death in the family, or similar serious condition or event that substantially impaired the applicant’s ability to file a timely application. “Good cause” shall not mean late filing due to the applicant’s inadvertence, oversight, or lack of knowledge regarding the filing requirements or deadline, financial hardship, or failure to pick up or read mail or to make arrangements for an appropriate and responsible person to pick up or read mail. The assembly is determining if good cause was shown. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: AGENDA ITEM #14.D.2. Good Cause Determination For A Senior Citizen Exemption, Applicant: Mr. ...Page 73 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough SUBJECT: Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive ORIGINATOR: Dave Conrad, Interim Borough Manager RECOMMENDATION: Move to convene into executive session under the authority of KIBC. 2.30.030 (F)(1)(b) and (h) to discuss the Borough negotiating position regarding the terms for lease of property at 717 E. Rezanof Drive, a matter the immediate knowledge of which would tend to adversely affect the finances of the Borough. Move to invite the Mayor and Assembly, except for Assembly Member Turner, the Manager, and the Clerk into Executive Session. DISCUSSION: The Borough issued a Request for Proposals (RFP) for the lease of Borough property at 717 E Rezanof Drive. There was only one respondent. The Borough RFP included a sample lease and invited proposers to identify any modifications they request to the proposed lease terms. The respondent proposed some modifications to the proposed lease. The Borough staff seek Assembly direction in negotiations over the terms which are acceptable to the Borough for the lease, which is a disposal of an interest in property. KIBC 2.30.030 (F)(1)(h) authorizes discussion of the terms for disposal of an interest in land to take place in executive session. KIBC 2.30.030 (F)(1)(b) authorizes discussion of the matters in executive session if the open discussion may tend to adversely affect the finances of the Borough. It is recommended that the discussion take place in executive session in order to keep the Borough’s position regarding the lease rent it is willing to accept, and the relative strength of the parties’ bargaining positions, confidential from the proposer until a tentative agreement subject to the Assembly approval is reached. If and when final terms are tentatively agreed upon by the parties the negotiated terms would be made public prior to Assembly approval of the lease. ALTERNATIVES: If the Assembly conducts the discussion open session it may impair the Borough’s bargaining leverage. FISCAL IMPACT: None. OTHER INFORMATION: KIB Code Title 2 Administration and Personnel Chapter 2.30 Rules of the Assembly F. Executive Sessions. The assembly may meet in executive session, at the call of the mayor, deputy presiding officer, or any four members of the assembly, only during a regular AGENDA ITEM #17.A. Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive Page 74 of 76 KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 19, 2023 ASSEMBLY REGULAR MEETING Kodiak Island Borough or special meeting, to privately discuss matters of confidential concern to the well-being of the borough government. b. Any matter the immediate public knowledge of which would tend to affect adversely the finances of the Borough; h. Land acquisition or disposal. AGENDA ITEM #17.A. Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive Page 75 of 76 RECORDS DESTRUCTION REPORT Department Record Series Total Retention Created Destroy Series & Description Records Location ELECTIONS EL-03 Certification + 3 months FY2018 FY2018 ELECTIONS - OPERATIONAL 2018 Precinct Registers 2018 Machine Tapes 2018 Election Officials Records Clerk’s Office ELECTIONS EL-03 Certification + 3 months FY2019 FY2019 ELECTIONS – OPERATIONAL 2019 Precinct Registers 2019 Questioned Registers 2019 Voter Roll 2019 Tally Books Ballot Testing Machine Tapes Clerk’s Office ELECTIONS EL-03 Certification + 3 months FY2020 FY2020 ELECTIONS – OPERATIONAL 2020 Precinct Registers 2020 Special Needs Register Clerk’s Office ELECTIONS EL-0E Certification +3 months FY2021 FY2021 2021 Ballot Testing Machine Tapes Clerk’s Office Kodiak Island Borough Assembly Regular Meeting Guidelines Assembly Chambers Thursday, January 19, 2023, 6:30 p.m. 1. INVOCATION MAJOR DAVE DAVIS OF THE SALVATION ARMY. 2. PLEDGE OF ALLEGIANCE MAYOR WILLIAMS 3. STATEMENT OF LAND ACKNOWLEDGEMENT MAYOR WILLIAMS We are gathered on the traditional homeland of the Sugpiag/Alutiiq people and we acknowledge the 10 tribes of the Kodiak Alutiiq Region. We recognize the Alutiiq culture that enriches our community to this day. 4. ROLL CALL KIBC 2.25.070... the chair shall cause the record to reflect the absence of the member, the reason for the absence, and whether the absence is excused by the assembly. 5. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed marked with an asterisk (*) are considered to be routine and non- controversial items by the Assembly and will be approved by one motion. Recommended motion: Move to approve the agenda and consent agenda. VOICE VOTE ON MOTION 6. *APPROVAL OF MINUTES A. Regular Meeting Minutes of January 5, 2023 7. CITIZENS' COMMENTS Agenda items not scheduled for public hearing and general comments. Read the phone numbers: Local is 907-486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. Sign in and state their name for the record 2. Turn on the microphone before speaking 3. Address all remarks to the assembly as a body and not to any member thereof 4. If calling in — turn off any listening devices to prevent feedback B. AWARDS AND PRESENTATIONS 9. COMMITTEE REPORTS Page 1 of 6 10. PUBLIC HEARING A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska Recommended motion: Move to adopt Ordinance No. FY2023-02B. Staff Report — Sue Zimmerman, Fiscal Analyst Open public hearing. Read phone numbers: 907-486-3231, Toll Free 1-855-492-9202. Please ask speakers to: 1. Sign in and state their name for the record 2. Turn on the microphone before speaking 3. Address all remarks to the assembly as a body and not to any member thereof 4. If calling in — turn off any listening devices to prevent feedback Close the public hearing. Assembly discussion. ROLL CALL VOTE ON THE MOTION. 11. BOROUGH MANAGER'S REPORT Dave Conrad, Interim Borough Manager 12. MESSAGES FROM THE BOROUGH MAYOR 13. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS 14, CONSIDERATION OF CALENDAR - NEW BUSINESS 14.A. CONTRACTS 14.B. RESOLUTIONS 14.C. ORDINANCES FOR INTRODUCTION 14.D. OTHER ITEMS Page 2 of 6 1. Confirmation Of Mayoral And Assembly Appointments To The Different Boards, Committees, and Commissions Recommended Motion: Move to confirm the following appointments: • Mayoral appointment of Mr. Jascha Zbitnoff to the Architectural/Engineering Review Board Building Code Board of Appeals seat for a term to expire December 2025 • Assembly appointment of Mr. Lee Robbins to the Board Of Equalization seat for a term to expire December 2024 • Assembly appointment of Mr. Robert Tucker to the Board Of Equalization seat for a term to expire December 2025 • Mayoral appointment of Mr. Brian Himelboom to the Parks and Rec Committee for a term to expire December 2025 • Mayoral appointment of Mr. Kent Cross to the Planning and Zoning Commission City seat for a term to expire December 2025 • Mayoral appointment of Ms. Teresa Pruitt to the Solid Waste Advisory Board seat for a term to expire December 2025 • Mayoral appointment of Mr. Lawrence Van Daele to the Solid Waste Advisory Board seat for a term to expire December 2025 Assembly discussion. ROLL CALL VOTE ON THE MOTION. 2, Good Cause Determination For A Senior Citizen Exemption, Applicant: Mr. Kyle Crow Mayor Williams to announce: I would like to recess the regular meeting and convene a quasi -adjudicatory hearing for Good Cause Determinations for a Senior Citizen Exemption, Applicant: Mr. Kyle Crow. The appellant may call in by dialing 907-486-3231; Toll Free is 1-855-492-9202 to present his appeal and rebuttal. We will follow the procedure in KIBC 3.35.050, and the order of presentation is as follows: 1. Appellant - 5 minutes - ask the Clerk to administer oath. 2. Assessor - 5 minutes 3. Appellant rebuttal - 2 minutes 4. Assessor address rebuttal - 2 minutes Page 3 of 6 Recommended motion: Move that the Senior Citizen Exemption be granted for showing good cause as stated in KIBC 3.35.030 D and direct the Assessor to accept the application as timely filed for Kyle Crow for the property located at 430 Main Street, Port Lions, AK. 99550. A yes vote will approve the application. Me: Move to uphold the Assessor's decision for lack of good cause shown as stated in KIBC 3.35.030 D for Kyle Crow for the property located at 430 Main Street, Port Lions, AK. 99550. A yes vote will deny the application. Assembly discussion. Assembly members may ask questions, through the chairperson, of either the appellant or the assessor at any time during the hearing. The chairperson may end the questioning and call for a motion from the other members. ROLL CALL VOTE ON THE MOTION. The chair will end the appeal hearing by stating the following: "According to Appellate Rule 602, the Appellant or the Assessor has the right of appeal to the Superior Court of the State of Alaska from our final decision. Should you wish to exercise your right of appeal, you must do so by notifying the Borough attorney and initiating the process within 30 days from the date of our written decision. Failure to do so will forever bar you from any appeal of this decision. " Mayor will adjourn the quasi -adjudicatory hearing and reconvene the regular meeting. 15. CITIZENS' COMMENTS Read the phone numbers: Local is 907-486-3231; Toll Free is 1-855-492-9202 Please ask speakers to: 1. Sign in and state their name for the record 2. Turn on the microphone before speaking 3. Address all remarks to the assembly as a body and not to any member thereof 4. If calling in — turn off any listening devices to prevent feedback Page 4 of 6 16 17 ASSEMBLY MEMBERS' COMMENTS MAYOR WILLIAMS: The next Assembly work session is scheduled for Thursday, January 26, 2023, at 6:30 p.m. in Borough Assembly Chambers. The next regular meeting is scheduled for Thursday, February 2, 2023, at 6:30 p.m. in the Borough Assembly Chambers. EXECUTIVE SESSION A. Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive Clerk's note: Any member who has a conflict of interest should disclose and ask for the Mayor's ruling. Example: Madame mayor, 1 would like to declare a conflict of interest because 1 request your ruling regarding my declaration. Mayor. 1 rule that Assembly member has a conflict of interest and should be excused from the meeting. The individual excused may step down from the dais and leave the meeting room Recommended motion: move to convene into executive session under the authority of KIBC. 2.30.030 (F)(1)(b) and (h) to discuss the Borough negotiating position regarding the terms for lease of property at 717 E. Rezanof Drive, a matter the immediate knowledge of which would tend to adversely affect the finances of the Borough. Assembly discussion. ROLL CALL VOTE ON MOTION Recommended motion: move to invite the Mayor and Assembly, except for Assembly Member Turner, the Manager, and the Clerk into Executive Session. VOICE VOTE ON MOTION After the vote, Mayor Williams recesses the special meeting and convenes the executive session. Upon returning from the executive session, Mayor Williams reconvenes the special meeting and announces -or- • No action is to be taken as a result of the executive session. Page 5 of 6 • The Assembly may make a motion if necessary. The Assembly must state the motion and vote outside of executive session. ROLL CALL VOTE ON ANY MOTION THAT MAY HAVE RESULTED FROM THE EXECUTIVE SESSION. 18. ADJOURNMENT Recommended motion: Move to adjourn the meeting. VOICE VOTE ON MOTION KIBC 2.30.030 A.... Meetings shall adjourn at 10:30 p.m. unless the time is extended by a maiority_ of the votes to which the assembly is entitled. No meeting shall be extended beyond 11 p.m., unless extended by a two-thirds vote of the assembly, except the meeting shall be extended to set the time and place for resumption of the meeting. Page 6of6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Version 2 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2023-02B AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING ORDINANCE NO. FY2023-02, FISCAL YEAR 2023 BUDGET, BY AMENDING BUDGETS AND APPROPRIATIONS TO ACCOUNT FOR THE ADDITIONAL SCHOOL BOND DEBT REIMBURSEMENT PAYMENTS RECEIVED FROM THE STATE OF ALASKA. WHEREAS, the Governor's budgets for fiscal years 2017, 2020, 2021 and 2022 did not fully fund the School Debt Reimbursements Program; and WHEREAS, State of Alaska CCS HB 281 appropriated $220 million in FY2023 to fund the School Debt Reimbursement Program at full reimbursement for those years previously funded at less than full reimbursements; and WHEREAS, the Kodiak Island Borough received $12,313,291 of reimbursement funding as a result of the additional appropriation, attached as Appendix A, and will reimburse $9,107,125 back to the General Fund, the Facilities Fund and the Renewal & Replacement Fund to repay their contributions to the Debt Service fund which enabled the Borough to make the required debt service payments; and WHEREAS, of the remaining $3,206,166 of non -reimbursable money contributed to the Debt Service fund, $173,351 will be retained within the Debt Service fund and $1.516.407 w4l ha 1 lecated to t h e F oci E Lerme m+,3 9(-,h o9l Roof RepaO prc�eGl and $1.5 4 ra. A 99 Wj 11 be allaGalee; to €I +t Repair projecrt , $560,000 will be allocated to the Borough Vehicle Replacement project, and $2,472,815 will be allocated to the Renewal & Replacement Fund. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances Section 2: The following budget amendments are made and supplemental appropriations and transfers are approved. Fund-Department/Project # 100 General Fund 276 Facilities Fund 300 Debt Service Amount of Budget Increase, Additional Appropriation & Transfer Amounts $5,319,272 $2,213,366 $173,351 Ordinance No. FY2023-02B Page 1 of 2 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 ARO East Elementwy Roof Repaii:l 4:2 ]nnA $47 4 ,"� $4,546,408 Repaii: i #238O2 495 Borough Vehicle Replacement 1#23003 $560,000 469 Renewal & Replacement $4,047,302-$4-,574,497 Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2023 KODIAK ISLAND BOROUGH Aimee Williams, Mayor Introduced by: Manager First reading: 09/05/2023 Second reading/public hearing: 01/19/2023 VOTES: Ayes: Noes: Ordinance No. FY2023-02B ATTEST: Nova M. Javier, MMC, Borough Clerk Page 2 of 2 APPENDIX A Version 2 Kodiak Island Borough Debt Service Fund Transfer Activity, State Reimbursement Payments and Payment Appropriations Transfered to Debt Service From: 2017 2018 2019 2020 2021 2022 General Fund (Note 1) $ 635,113 $ (492,936) $ (142,177) $ 3,016,076 $ 2,303,196 Education Support (Note 2) $ 1,632,815 Facilities Fund $ 151,858 $ 65,105 $ 338,982 $ 830,105 $ 827,316 Renewal & Replacement $ 1,574,487 $ 786,971 $ (427,831) $ 196,805 $ 2,462,920 $ 5,417,879 $ 2,303,196 Note 1: The 2017 loan from the General Fund was paid back with an additional Debt Service mill rate increase in 2018 and 2019. Note 2: Contribution from School District is not allowed to be returned without voilating State maximum local funding limits. HB 281 State Reimbursements of School Construction Debt Pavments: Year Reimbursed Original FY2017 $ 1,015,079 FY2020 $ 2,712,401 FY2021 $ 5,336,799 FY2022 $ 3,249,012 Retained by Debt Service Total Received $ 12,313,291 Ordinance FY23-02B Appropriation of Reimbursements: Totals $ 5,319,272 $ 1,632,815 $ 2,213,366 $ 1,574,487 Original Version 2 General Fund $ 5,319,272 $ 5,319,272 Facilities Fund $ 2,213,366 $ 2,213,366 Retained by Debt Service $ 173,351 $ 173,351 East Elementary Roof project $ 1,516,407 $ - North Star Roof & Skylight project $ 1,516,408 $ - Borough Vehicle Replacement project $ - $ 560,000 Renewal & Replacement $ 1,574,487 $ 4,047,302 Total Disbursed $ 12,313,291 $ 12,313,291 Totals $ 5,319,272 $ 1,632,815 $ 2,213,366 $ 1,574,487 Regular /Special g KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Convened: Recessed: Reconvened: Date Adjourned: BY: BY: Vpr SECOND: SECOND: F Od BY: SS SECOND: S b BY: SECOND BY: SECOND:owl', YES NOift YES NO YES NO YES NO YES NO Mr. Arndt Mr. Arndt Mr. Arndt ✓ Mr. Arndt I/ Mr. Arndt Mr. Delgado Mr. Delgado Mr. Delgado Mr. Delgado Mr. Delgado Mr. Griffin Mr. Griffin Mr. Griffin Mr. Griffin Mr. Griffin Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Ledoux v Mr. Ledoux Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smith 1.,7 Mr. Smith Mr. Smith Mr. Smith Mr. Smith Mr. Turner Mr. Turner Mr. Turner Mr. Turner Mr. Turner WOULD ANYONE LIKE TO CHANGE THEIR VOTE? WOULD ANYONE LIKE TO CHANGE THEIR VOTE? TOTAL: TOTAL: TOTAL: f TOTAL: TOTAL:v The mayor may n vote except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor Williams V Mayor Williams Mayor Williams I I Mayor Williams I I IMayor Williams T- * Motions required for 213 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules, limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. Regular Special Convened: KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Date: I� vb Recessed: Reconvened: U Adjourned: 0'4qfAl BY: C C� SECOND: i/ L� • :1 BY: r SECOND:4� BY: ` I SECOND: V1 1. V ` BY: SECOND: BY: SECOND: YESNO YES NO YES NO YES NO YES NO Mr. Arndt V, Mr. Arndt Mr. Arndt Mr. Arndt Mr. Arndt Mr. Delgada Mr. Delgado �' Mr. Delgado Mr. Delgado Mr. Delgado Mr. Griffin V Mr. Griffin Mr. Griffin Mr. Griffin Mr. Griffin Mr. Ledoux' Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smith Mr. Smith Mr. Smith Mr. Smith Mr. Smith Mr. Turner Mr. Tur r. Turner Mr. Turner WOULD ANYONE LIKE TO CHANQE THEIR VOTE? WOULD ANYONE LIKE TO CHANGE THEIR VOTE? TOTAL: I r)TOTAL: U TOTAL: TOTAL: TOTAL: The mayor may not vote except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor Williams Mayor Williams Mayor Williams Mayor Williams Mayor Williams • Motions required for 213 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules. limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. As 29.45.030. Required Exemptions. (e) The real property owned and occupied as the primary residence and permanent place of abode by a (1) resident 65 years of age or older; (2) disabled veteran; or (3) resident at least 60 years old who is the widow or widower of a person who qualified for an exemption under (1) or (2) of this subsection, is exempt from taxation on the first $150,000 of the assessed value of the real property. A municipality may, in case of hardship, provide for exemption beyond the first $150,000 of assessed value in accordance with regulations of the department. Only one exemption may be granted for the same property and, if two or more persons are eligible for an exemption for the same property, the parties shall decide between or among themselves who is to receive the benefit of the exemption. Real property may not be exempted under this subsection if the assessor determines, after notice and hearing to the parties, that the property was conveyed to the applicant primarily for the purpose of obtaining the exemption. The determination of the assessor may be appealed under AS 44.62.560 - 44.62.570. (f) To be eligible for an exemption under (e) of this section for a year, a municipality may by ordinance require that an individual also meet requirements under one of the following paragraphs: (1) the individual shall be eligible for a permanent fund dividend under AS 43.23.405 for that same year or for the immediately preceding year; or (2) if the individual has not applied or does not apply for one or both of the permanent fund dividends, the individual would have been eligible for one of the permanent fund dividends identified in (1) of this subsection had the individual applied. An exemption may not be granted under (e) of this section except upon written application for the exemption. Each municipality shall, by ordinance, establish procedures and deadlines for filing the application. The governing body of the municipality for good cause shown may waive the claimant's failure to make timely application for exemption and authorize the assessor to accept the application as if timely filed. If an application is filed within the required time and is approved by the assessor, the assessor shall allow an exemption in accordance with the provisions of (e) of this section. If the application for exemption is approved after taxes have been paid, the amount of tax that the claimant has already paid for the property exempted shall be refunded to the claimant. The assessor shall require proof in the form the assessor considers necessary of the right to and amount of an exemption claimed under (e) of this section, and shall require a disabled veteran claiming an exemption under (e) of this section to provide evidence of the disability rating. The assessor may require proof under this subsection at any time. KIBC 3.35.030 Real and personal property exempted from taxation. D. In the event that a claimant fails to apply for a senior exemption as provided by AS9 4S.03f1(e) by January 15th of the assessment year for which the exemption is sought, the borough assessor for good cause shown may waive the claimant's failure to make timely application for the exemption for that year and shall accept the application, as if timely filed, subject to the provisions contained in AS 9.45.030(e). 1. A waiver may only be granted for the year in which an application is filed. 2. "Good cause" shall mean extraordinary circumstances beyond the control of the applicant, including but not limited to a medical condition or disability, impaired mental capacity, family emergency, death in the family, or similar serious condition or event that substantially impaired the applicant's ability to file a timely application, "Good cause" shall not mean late filing due to the applicant's inadvertence, oversight, or lack of knowledge regarding the filing requirements or deadline, financial hardship or failure to pick up or read mail or to make arrangements for an appropriate and responsible person to pick up or read mail. Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (90-.') 486-9301 Fax (907) 486-9390 TO: Kodiak Island Borough Assembly, Mayor Williams FROM: David Conrad, Interim Borough Manager RE: Managers Report, January 19, 2023 Manager's Department Manager Recruitment -- Interviews are scheduled for January 3151 and February I` City Borough Joint Work Session held last night. LATCF Funds - U.S. Department of the Treasury Local Assistance and Tribal Consistency Fund - The staff is monitoring the accounts for the first tranche deposits. Nothing has been deposited as of today's date. The eligible amount is $4,787,173.04. Staff anticipates half of the funds to be deposited within a week. KIB Facility - Lease discussions have begun with the City of Kodiak specific to the 710 Mill Bay Road Facility. Awaiting contact from the city staff for a follow up meeting. 717 Eagan Way Lease - Proposed lease negotiated during the past two weeks will be discussed in Executive Session this evening for assembly consideration. The KIB attorney has reviewed the final draft. Larsen Bay School Staff has not received signed facility transfer documents back from the Larsen Bay Tribal Council. Staff has attempted to contact the residents that had been provided documents, but no reply has been received. Staff will attempt contact again. Staff is planning to travel to Larsen Bay to inspect and provide a repair list for items that were identified and not repaired prior to the signatures being finalized on the facility transfer to the Larsen Bay Tribal Council. Engineering and Facilities - OSHA Voluntary Compliance Visit — OSHA staff due in next week. Meeting scheduled to start at the Baler on January 31s` at 9:00am. Focus will be on the Baler and Leachate Treatment Facility. Architect Visit - Corey Wall of Jenson, Yorba, Wall will be in town in February. Plans are to present information on the Peterson School Roof Replacement and several other projects during the February 9`" Work Session. Arrangements for interior tours of the schools have been made during his stay. Vehicle Procurement Proposal - Small vehicle RFP has been advertised and vendors have been alerted to the advertisements. The proposals are due January 30, 2023. Pick-up truck RFP is being finalized for review and advertisement. KFRC Carpet Replacement — Final billing and acceptance of the job has been completed. Staff is awaiting a discussion with the GSA representative that deals with the specific lease for this facility for further discussion regarding carpet replacement in the library leased space. KFRC Fume Hood Upgrade — This project is functionally completed. Balancer and Control Contractor will be on site January 30, 31, 2023 for final calibration and adjustment of the Variable Frequency Drive. Leachate Treatment Plant Contractor has reevaluated winter construction period. Anticipate mid to late March prior to the beginning of the assembly of the building package. Awaiting final structural calculations for submission and review prior to permit being issued. Bayside Classroom Addition — Staff has been informed that the initial designs prepared by the architect have been rejected. The board is looking for a larger addition size. Awaiting preliminary estimate for the installation of the commercial sprinkler in the existing classroom and proposed addition has been requested. Fire Protect Area #1 Pick Up — The existing red E.T pick-up has been serviced and 4WD is being tested and confirmed. Red truck will be loaned to Bayside for the Chief Officer response vehicle due to the poor mechanical condition of the existing white response vehicle. OSHA Voluntary Compliance Visit OSHA staff will be in town January 24`x' through January 27`h. Pre inspection walk throughs are being conducted. Finance Department/ IT - FY2024 Budget Preparation - Packets have been forwarded to the Service Area Boards and Staff for the preparation of the upcoming budget discussions. Boards are scheduling upcoming required meetings. PATS Software - Property Assessment and Taxation Software - RFP is being advertised with a bid date of February 28, 2023. Popular Report - Final report has been received and has been distributed to the assembly for review. The department continues to be short staffed due to vacation and medical treatment. Annual Financial Statement copies have been provided to the assembly. Copies of the report will be made available on line for the public. Staff has been informed that additional Opioid Settlement Funds have been identified and will require approval in April 2023. Assessing Department - Property Valuation Property review and inspection for valuation has been completed. Staff is entering data for preparation of the value of the tax role update. KANA Suit - Court dates are January 30th - February 3`d. List of Pending Items for Discussion City of Kodiak - E911 System and compensation o Borough Building Remodel or Upgrades Joint support and participation in the development of the CIP List (Federal emphasis) Disposition of Closed School Facilities Allowable Scope for Current Staff Continued update of the Personnel Manual ARPA Funding Reporting is continuing. Grant Application and Local Match Funding Approval for application prior to expending staff time. Leases - City of Kodiak Borough Building Lease, Teen Court, Red Cross, Fairgrounds, KISA, Chiniak Library, Long Term Care Major Maintenance Funding for Facilities Disposition of Mental Health Buildings Bid received Solid Waste Collection Contract Modifications Service Area Contracts Annual Contracts Additional Methods to Reward Employees in Personnel Manual Vehicle Replacement Funding opportunities for road repairs and improvements. KODIAK ISLAND BOROUGH Meeting Type: 410ac Mcuknq Date: 01 -?q- Z02-3 Please PRINT your name legibly Please PRINT your name legibly C � r�- View our website: www.kodiakak.us Visit our Facebook page: www.facebook.com/KodiakIslandBorough Follow us on Twitter: @KodiakBorough Kodiak Island Borough Assembly Newsletter Vol. FY2023, No. 22 January 20, 2023 At Its Regular Meeting Of January 19, 2023, The Kodiak Island Borough Assembly Took The Following Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On February 2, 2023, At 6:30 P.M. In The Borough Assembly Chambers. AMENDED/ADOPTED Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska CONFIRMED The Mayoral And Assembly Appointments To The Different Boards, Committees, And Commissions As Follows: • Mayoral Appointment Of Mr. Jascha Zbitnoff To The Architectural/Engineering Review Board Building Code Board Of Appeals Seat For A Term To Expire December 2025 • Assembly Appointment Of Mr. Lee Robbins To The Board Of Equalization Seat For A Term To Expire December 2024 • Assembly Appointment Of Mr. Robert Tucker To The Board Of Equalization Seat For A Term To Expire December 2025 • Mayoral Appointment Of Mr. Brian Himelboom To The Parks And Rec Committee For A Term To Expire December 2025 • Mayoral Appointment Of Mr. Kent Cross To The Planning And Zoning Commission City Seat For A Term To Expire December 2025 • Mayoral Appointment Of Ms. Teresa Pruitt To The Solid Waste Advisory Board Seat For A Term To Expire December 2025 • Mayoral Appointment Of Mr. Lawrence Van Daele To The Solid Waste Advisory Board Seat For A Term To Expire December 2025 UPHELD The Assessor's Decision For Lack Of Good Cause Shown As Stated In KIBC 3.35.030 D For Kyle Crow For The Property Located At 430 Main Street, Port Lions, AK. 99550 CONVENED INTO EXECUTIVE SESSION Under The Authority Of KIBC. 2.30.030 (F)(1)(B) And (H) To Discuss The Borough Negotiating Position Regarding The Terms For Lease Of Property At 717 E. Rezanof Drive, A Matter The Immediate Knowledge Of Which Would Tend To Adversely Affect The Finances Of The Borough INVITED The Mayor and Assembly, except for Assembly Member Turner, the Manager, and the Clerks into Executive Session. ANNOUNCED That No Action Was Taken As A Result Of The Executive Session. A Special Meeting Was Called On Thursday January 26, 2023, So The Contract That Pertains To This Lease Can Be Discussed Publicly