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1989-01-03 Regular MeetingKodiak Island Borough I}'o SERVICE DISTRICT NO. 1 BOARD OF SUPERVISORS Regular Meeting - January 3, 1989 MINUTES 1. CALL TO ORDER AND ROLL CALL The meeting was called to order at 7:40 p.m. in the Borough Conference Room by Mr. Jim Fisk, Chairman. Members Present Jim Fisk, Chairman Tony Perez, Vice -Chairman Scott Arndt James Berg Okey Chandler Earl Smith Norman Wooten Members Absent - None. Staff Present Dave Crowe, Borough Engineer Dan Millard, Constr. Inspector Ann Moen, Secretary Also present were Mr. and Mrs. Mike Steelman, and Okey Chandler's attorney Charles A. Winegarden, to participate in the discussion of Agenda Item No. 4, Chandler/Steelman Water and Sewer Services. 2. AUDIENCE COMMENTS AND REQUESTS - None. 3. APPROVAL OF MINUTES — DECEMBER 6, 1988 The following corrections to the draft minutes were adopted by consent: Page 2 - Third paragraph from bottom of page: correct last two lines to read: additions would cost. Mr. Crowe replied with, "perhaps $80,000 (on a $3,000,000 project including utilities and roads)." Page 4 - Second paragraph from bottom of page: correct last two lines to read: the Service District has to sand parts of some state - maintained roads just to get to Service District roads [ ] to sand them. The December 6, 1988 minutes, as corrected, were approved by unanimous consent of the Board. 4. CHANDLER/STEELMAN WATER AND SEWER SERVICES: Appearance Request from Charles A. Winegarden, Attorney at Law, for Mr. Okey Chandler 0975 Subdivision of Lot 2, U. S. Survey 3099) Mr. Fisk stated his ruling that the following guidelines will be followed during the presentations and discussion of this agenda item: first, a motion must be made and -1- KODIAK ISLAND BOROUGH N C L Service District No. 1 Board of Supervisors January 3, 1989 Meeting Minutes - Page 2 and seconded and passed to remove from the table the September 13, 1988 motion to rescind the Board's May 3, 1988 action in this matter. [The May 3, 1988 action approved the installation of water and sewer services for Lots 2A and 213, U. S. Survey 3099, "at the edge of the Spruce Cape Road right-of-way at the beginning of the utility easement shown on the plat of the subdivision of Lot 2, U. S. Survey 3099, Plat 75-4.11] Mr. Fisk continued that, in order, will be (1) Mr. and Mrs. Steelman's request; (2) Staff's presentation; and (3) Mr. Winegarden's presentation (on behalf of Okey Chandler). Mr. Fisk continued, that there will be only two chances for each board member to ask questions, and that Mr. Chandler must step down from the Board because of a conflict of interest. Mr. Arndt moved, and Mr. Perez seconded the motion, to remove from the table the Board's September 13, 1988 motion to rescind its May 3, 1988 action in this matter. The motion passed 6-0 by voice vote, Mr. Chandler abstaining. (1) Mrs. Steelman read aloud to the Board the Steelman's March 30, 1988 letter —requesting that water and sewer services be installed according to Borough Code within the easement through Lot 2C to Lots 2A and 2B, without cost to themselves. In response. to Mr. Fisk's questions, Mr. and Mrs. Steelman stated that they had been informed in 1975 that all requirements had been met, and that the temporary lines installed by Mr. Chandler outside the platted easement would have to be moved over to the location shown [on the drawing attached to Rolland A. Jones' memo dated February 3, 19751 and the installation would have to be corrected by Mr. Chandler. (2) Dave Crowe, Borough Engineer, stated that staff did not make any recommendations in this matter, but just presented the facts. There is nothing in the subdivision case file between the February 6, 1975 approval by the Assembly, and the Borough Clerk's June 9, 1975 letter to Mr. Chandler notifying him that the plat had been filed. Dan Millard, Construction Inspector, stated that when this matter first came up, he asked Rolland Jones if he had inspected the water and sewer installation for this subdivision. Mr. Jones replied that he had not, but that he often didn't —relying on what the subdivider told him about the installation. Mr. Crowe pointed out that Board members have in their packets, in the Chandler subdivision case file, a letter dated January 28, 1975 to Rolland Jones asking him for a written report "that the water and sewer facilities are available to the property lines of Lot 2, as required by our Borough Code," required before the plat can be recorded. Mr. Jones' February 3 written report states that "Utilities will have to be extended as shown (or equal) on the attached plat." [He has drawn in utility locations on a copy of the plat.] The plat was recorded March 18, 1975. -2- KODIAK ISLAND BOROUGH Service District No. 1 Board of Supervisors January 3, 1989 Meeting Minutes - Page 3 Mr. Crowe replied to a question from Mr. Berg, that "yes, since private property can't be crossed with services for other lots, a main line would have to be put up there by the subdivider if this property were to be subdivided today." (3) Mr. Winegarden made a presentation on behalf of Mr. Chandler, presenting City of Kodiak drawings of water and sewer locations superimposed on an aerial photograph of the property, and gave a history of water and sewer installations and upgrades in the area. He stated Mr. Chandler had sold the lots in 1975 for $15,000—which he couldn't have done if manholes had been required. There were no questions for Mr. Winegarden, and, following a ten-minute break, the Board reconvened at 9:13 p.m. Mr. Arndt said he believes that there was a "total screw -up" by both the developer and Borough staff at the time (1975). Mr. Chandler came in for a subdivision, Rolland Jones shows the required sewer and water, and that's not the way the utilities were put in. Mr. Chandler chose to provide services off his existing services and, while the Code didn't say the utilities had to be in the easement — just that services be provided —that was clearly not the intent of the Planning and i oning Commission at the time. The Borough accepted the installation by allowing he plat to be recorded, and in doing so "screwed up." The Assembly will say the nstallation was made before the Service District existed, so now it's a Service District problem. Either way the Board decides, Service District No. 1 will loEe. Technically, this is not a main line and so the Service District should not put it in. The Steelmans are victims —Mr. Chandler knew exactly what he was doing. The point should be made to the Borough Assembly that this situation is the Borough Assembly's problem, not the Service District No. 1 Board's problem. Mr. Perez agrees that two parties are at fault —Mr. Chandler and the Borough Assembly. This subdivision exists, and we should have asked for grant monies to correct the problem. But the burden shouldn't be on Steelmans. Mr. Wooten agrees that Steelmans shouldn't have to pay ... but who should? Either the Service District or the Assembly will have to bite the bullet... Mr. Smith isn't certain it's a main line which, if it were, we should fix. He assumes that anyone voting "yea" is "defining" this as a main line rather than a service line. He will vote "nay" and, if his side prevails, Mr. Chandler can appeal the decision to the Borough Assembly —which will require Service District No. 1 to pay for the installation. Mr. Berg believes staff made a mistake in 1975, that Steelmans shouldn't have to pay, and that policy implementation and the formation of the Service District came too late. F Mr. Fisk stated the Steelmans purchased the property expecting to receive water and [1� sewer, and have asked the Board to correct the installation so they can access it, or clean it out and repair it. Our priorities should be to provide the owners of -3- KODIAK ISLAND BOROUGH Service District No. 1 Board of Supervisors January 3, 1989 Meeting Minutes - Page 9 Lots 2A and 2B their own water and sewer services. He agrees with Mr. Wooten, Mr. Perez, and Mr. Berg, that we'll have to "bite the bullet," and he believes that the Board needs to act tonight. He appreciates all the materials staff and others have presented, and will have to vote "yea." Mr. Arndt moved, and Mr. Perez seconded the motion, to rescind the Board's May 3, 1988 action approving the installation of water and sewer services for Lots 2A and 2B, U. S. Survey 3099, "at the edge of the Spruce Cape Road right- of-way at the beginning of the utility easement shown on the plat of the subdivision of Lot 2, U. S. Survey 3099, Plat 75-4 " The motion passed on a 5-1 roll call vote, Mr. Smith voting "nay" and Mr. Chandler abstaining. Mr. Berg moved, and Mr. Wooten seconded the motion, to provide water and sewer services to Lots 2A and 2B utilizing the platted utility easement. The motion passed on a 5-1 roll call vote, Mr. Smith voting "nay" and Mr. Chandler abstaining. Mr. Crowe suggested that the Board adopt formal "Findings of Fact" for its action, so its action doesn't appear to the Borough Assembly to be a change of policy. By consensus, Board members agreed to adopt "Findings of Fact" at the next meeting, stating their reasons for voting as they did. Mr. Arndt: The developer, Mr. Chandler, "screwed up" and the Borough "screwed up in not following the intent of the Planning and Zoning Commission —which was to provide utilities to Lots 2A and 2B through the easement. The developer cut corners by taking utilities for these lots off his house services. The Borough is primarily at fault for approving the filing of the subdivision plat. The Assembly would say that now that we have a Service District, the. Service District should pay. But he does not agree that the line going under Mr. Chandler's house to provide service to the upper lots is a main line; it is not. Mr. Perez: This action is to correct gross errors of the past. Our policy of our last action in this matter (May 3) was consistent, and tonight's action is inconsistent with Board policy, but it provides relief to Steelmans. This is apparently the only action that will remedy the problem. Mr. Wooten: This is a Borough -approved subdivision, but the Service District — though not at fault —will have to correct the problem. Mr. Smith: No. He would like to point out that if the Borough erred, the Borough's errors and omissions insurance should pay for remedying the situation, not the Service District. This is a service line, not a main line, and the Service District should not be paying for it. Mr. Berg: A reluctant "yes." Mr. Winegarden's comparison of this case with the Magnusen case had nothing to do with his decision, nor did the cost of the lots. Prior staff made a mistake in 1975, the developer.cut corners, and this is not a main line. Steelmans need to get what they paid for. The Borough needs legal assistance to require the developer to pay for making the installation he should have made in 1975. -4- KODIAK ISLAND BOROUGH Service District No. 1 Board of Supervisors January 3, 1989 Meeting Minutes - Page 5 Mr. Fisk: Yes, based upon the information in subdivision case file 294B (Chandler). He sees staff and engineer's mistakes and a lack of adequate record -keeping in the Borough. Subdivisions are required to have utility access, and he feels the developer provided adequate utility access. The Service District needs to bite the bullet and apply for funds to upgrade the system. 5. PROJECT NO. 86-1 DESIGN CHANGES Mr. Fisk ruled that Mr. Perez and Mr. Arndt step down from the Board during its deliberation of this item because, as property owners of lots to be served, a conflict of interest exists. Mr. Crowe presented proposed design changes on drawings, showing the extension of the Sharatine line 100 feet plus an additional 100 feet; extension of the Perenosa line 200 feet; and another extension of the Perenosa line 90 feet and 160 feet. If these changes meet the Board's intent, he asked the Board to adopt them. These changes will eliminate one fire hydrant. There is approximately $450,000 remaining in funds to work with, but part of that has been earmarked for other upgrades. Mr. Berg moved, and Mr. Smith seconded the motion, to adopt the design changes as presented tonight by Mr. Crowe. The motion passed 5-0 by roll can vote, with Mr. Perez and Mr. Arndt abstaining. 6. PROJECT NO. 86-2 PROPOSED DESIGN Mr. Crowe explained that the problem area is just below Mr. Chandler's: Spruce Cape Road, Lots 3 and 4 before 4B, U. S. Survey 3099. The service for Lot 4B (Boyer's) goes across the westerly lot. Mr. Arndt suggested that the service be extended along Spruce Cape Road to go directly to Lot 413, north from the road, with a six-inch line across Spruce Cape Road and a six-inch line in each direction. Mr. Crowe's estimate of the cost is $95,000 for Mission Subdivision, $63,000 here, plus $65,000 for the Chandler/Steelman upgrade, plus another $10,000 to extend the line 100 feet along the road. (These figures exclude service to Norm Sutliff's at Mr. Sutliff's insistence.) Mr. Arndt stated there are three or four fire hydrants on Spruce Cape Road that are too close to the road. Mr. Crowe suggested that the Service District let the state move them when the state upgrades the road. Mr. Arndt replied that their locations represent a hazard, and people are pushing for sidewalks. Mr. Fisk said he would look at the situation and have it on the next agenda. Mr. Arndt moved, and Mr. Berg seconded the motion, to approve Mr. Crowe's recommendations, and to extend the line 100 feet down Spruce Cape Road. The motion passed by unanimous roll call vote. -5- KODIAK ISLAND BOROUGH Service District No. 1 Board of Supervisors January 3, 1989 Meeting Minutes - Page 6 7. UTILITY REQUEST PROCEDURE Mr. Millard requested that the Board adopt a "Utility Request Procedure" for clarification with respect to who obtains the permits, and in consideration of the new State utilities and right-of-way procedures. Mr. Fisk wants staff to use a check -off list without customers going directly to the Service District's contractor for work. Mr. Crowe explained the benefit to the customer of avoiding the ten percent Borough administrative fee if the Borough processes the request and bills the customer, stating that existing procedure requires coordination with Engineering Department staff if a customer is to deal directly with the contractor. Mr. Arndt likes the way the existing procedure has worked. He'd like to review the proposed "Utility Request Procedure" and consider it next month. Mr. Arndt moved, and Mr. Berg seconded the motion, to acknowledge receipt of the proposed "Utility Request Procedure, Service District No. 1" form. The motion passed by unanimous voice vote. 8. INFORMATIONAL ITEMS/STAFF REPORTS Mr. Millard handed out his December 22, 1988 letter to Mr. Dave Nease of Kodiak Electric Association. The Board acknowledged receipt, by consensus. 9. BOARD MEMBER COMMENTS Mr. Perez feels that the Board accomplished quite a bit tonight. Mr. Chandler reported he had received a couple of letters requesting that the Service District provide service to include "Caution —Children" signs where they are needed. 10. ADJOURNMENT With no further business to be conducted, Mr. Fisk declared the meeting adjourned, at 10:43 p.m. Approved:_ Secretary