1989-07-11 Regular Meeting�v Kodiak Island Borough
SERVICE DISTRICT N0. 1 BOARD OF
Tuesday, July 11, 1989 - 7:30 p.m.
Borough Conference Room
MINUTES
1. CALL TO ORDER AND ROLL CALL
As the chairman and vice-chairman were absent, Mr. Arndt was
asked to act as chairman by the consensus of the Board. The
meeting was called to order by Mr. Arndt at 7:40 p.m.
MEMBERS PRESENT MEMBERS ABSENT STAFF PRESENT
James Berg Ole Mahle Robert MacFarlane
Earl Smith Jim Fisk Donna Smith
Okey Chandler
Scott Arndt
Tony Perez (arrived at 8:55 p.m.)
Mr. Mahle, whose resignation has been submitted, and Mr. Fisk
were excused from the meeting.
2. AUDIENCE COMMENTS
Dan Millard, 366 Lilly Drive, introduced himself as a resident of
Service District #1. Mr. MacFarlane stated he had asked Mr.
Millard specifically not to be at this meeting. Mr. Millard said
he was attending as a resident of the Service District. Mr.
Arndt gave instructions for it to be noted that Mr. Millard was
attending as a resident of the Service District.
3. APPROVAL OF AGENDA
An apology was given to the Board for the lateness in the
distribution of the Agenda packet.
A motion was made by Mr. Arndt and seconded to accept the agenda.
Motion carried by unanimous voice vote.
4. APPROVAL OF MINUTES
A motion was made by Mr. Berg and seconded to strike Mr. Berg's
name as the maker of the motion on Ordinance No. 862 in the
minutes of the special meeting on June 14, 1989. He did not make
the motion, Mr. Arndt did.
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Motion carried by unanimous vote.
A motion was made by Mr. Berg and seconded to accept the minutes
of June 12, 1989, and the minutes of June 14, 1989 as amended.
Motion carried by unanimous voice vote.
FINANCE REPORT
Mr. Berg is concerned about the depreciation schedule. A member
of the Finance Department has been requested to explain the water
fund (331%) and the sewer fund depreciation.
Mr. Arndt stated there are discrepancies between depreciations.
Funds would have to be quadrupled to cover depreciation.
Mr. MacFarlane asked why the difference between budget and
actual.
Mr. Berg replied that is why we are trying to get Karl Short to
tell us. The Board would like a depreciation schedule.
Mr. MacFarlane said he would ask the question and get an answer
to them.
A motion was made by Mr. Berg and seconded to accept the Finance
Report. Motion carried by unanimous voice vote.
ENGINEERING/FACILITIES STAFF REPORT
Mr. MacFarlane introduced himself as the Department Head for the
newly combined Engineering/Facilities Department. He explained
the Department is a service organization, and he would like to
hear what the Board wants from the Department. He is trying to
get a feel for what the Borough has done for service Districts
and get input. The Assembly has merged the two departments with
the intent of decreasing services provided by that department.
He looks for the services to be provided more efficiently by
providing some that will need to be and some that may not need to
be. He asked for the Board's comments as he gave his report.
Mr. Arndt asked if part of the duties were to go to the Community
Development Department.
Mr. MacFarlane replied that everything that had to do with
subdivisions would be in the Community Development Department.
Mr. Arndt asked if Mr. MacFarlane would be inspecting plats.
Mr. MacFarlane replied that it would be just a cursory dealing
with proposal of standards of utilities and roadways in the
plats.
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% Mr. Arndt said that typically engineering has sent out a copy of
1 the proposed plat to the chairman of the Service District. He is
concerned that the Department also receive the plat.
Mr. MacFarlane said he already had one packet given to him with a
request that he review it. If someone here wants to review,
please stop by the office.
Mr. Arndt said that typically the chairman has received one in
the past. He will check with Linda Freed, Community Development
Department Head. The Service District Board is interested in
hearing any comments that Mr. MacFarlane might have.
Mr. MacFarlane said he needs to become more familiar with
operational duties.
Mr. Arndt said the chairman is responsible for calling out the
road maintenance crews. The chairman will respond to the public
on road conditions. The chairman also determines the course of
action. The sewer and water have been cleared by the chairman
and handled by the engineer. The problem is investigated for a
determination of how it is to be handled. The driveway permits
are handled with the State on an individual basis --the Borough is
not involved. Water and sewer are handled differently.
Mr. Arndt stated he had objections to the Sharatin Road project
and the Carroll Way project being combined. He feels it will
restrict the bidding.
Mr. MacFarlane said he would go to Mayor Selby and voice
objection from the Board.
Mr. Arndt said that a work order basis has been used with Mike
Brechan.
Mr. MacFarlane explained the Department's serial letter process
and that it will be used now.
Mr. Arndt said they are willing to try that.
Mr. MacFarlane said that it is a more formal way of doing work
orders compared to a field order memo. Mr. MacFarlane went on to
say that the duties of Dan Millard, Construction Inspector, would
no longer include going to the plant to get the contractor's
crews shaped up.
Mr. Arndt said Island Sand and Gravel's contract expires at the
end of the year. The Chairman usually calls Island Sand and
Gravel to grade and maintain the roads. He stated the Board is
not interested in the cul-de-sacs on Lakeview Drive and Sawmill
Circle (Agenda Item VII.D.1). He explained the Service District
provides three services: sewer, water, and roads. The
cul-de-sacs do not fall within that.
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Mr. MacFarlane suggested an amendment to the contract be made so
that it could be funded out of another source.
Mr. Arndt replied that he did not see any problem with that, but
it would need to be prioritized. Snow removal priorities are
rotated.
Mr. Chandler suggested they get into the Monashka District.
Mr. MacFarlane said the Borough Attorney, Joel Bolger, is
examining the general conditions of the contract to standardize
conditions for capital projects.
Consolidation of the Borough and City were discussed. Reports of
the consolidation committee had been handed out to the Board
members at a previous meeting. A motion was made by Mr. Chandler
to approve consolidation and form service districts. Motion died
for lack of a second.
7. OLD BUSINESS
A. City Utility Rate Increase:
Mr. Chandler asked if the Borough was about to come to an
agreement with the City.
Mr. Berg explained that what it does is challenge the Board's
points in their response to the City ordinance. He gave a brief
summary of Dan Millard's report. He felt page 9 and page 11 of
that report were the most beneficial to read at this time.
Mr. Chandler could see no reason why the Board should be robbed
blind.
Mr. Arndt said that at the last meeting, the Mayor gave direction
that we would pay as like indicated, and not what the City
charges. The only thing we might need from staff is the reading
of the meters.
Mr. MacFarlane said that apparently they are not available to be
read. The City has locked them.
Mr. Arndt said the meter rate is what had been paid on.
Mr. MacFarlane stated he would go to Mayor Selby and ask him.
(Mr. Perez arrived at 8:55 p.m.)
Mr. Arndt said the future of the Service District is at stake
over the rates. If the City cannot accept what is reasonable, it
is annexation rather than consolidation. He went on to explain
that the charge rate by the Service District is on a mil rating.
As the Service District is growing, the make-up is changing.
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rMr. Berg asked if he had any proposal to make.
Mr. Arndt replied that we need to see if the letter has been
sent.
Mr. Perez answered no. He had checked on that yesterday.
The Board instructed Mr. MacFarlane to request Mayor Selby to
forward the Service District's concerns.
Mr. Arndt said it will have to come up again next month. A
motion had been passed previously to send the letter.
Mr. Berg asked if another letter is needed to be sent to Mayor
Selby stating the Board is more adamant than ever for the Borough
to take a stand.
Mr. Arndt suggested the chairman go back in and talk to the
Mayor.
Mr. MacFarlane said he could certainly talk to him about it.
Mr. Arndt said the next process will be receiving the June
billing.
Mr. Perez stated that the Assembly, on the whole, was concerned.
Mr. Arndt said Mayor Selby had told him he would direct the
staff.
Instructions were given to Mr. MacFarlane to make sure the bill
is not paid.
B. Consolidation:
Acknowledged receipt.
C. Sewer and water:
The Board's objection had already been voiced. Mr. MacFarlane
was instructed to make note that the projects are (1) not
related, (2) able to be done quickly, and (3) the number of
bidders will be eliminated by the costs.
A motion was made by Mr. Berg and seconded to not combine the
projects of water and sewer on Sharatin Way and Carroll Way.
Motion carried by roll call vote. Mr. Perez was the dissenting
vote.
D. Annexation•
Discussion about the fact that it has been brought before the
Service District Board three times and each time it has been
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rejected because there are only
road grading. What is proposed
service.
three services offered, not just
is just annexation of the road
A motion was made by Mr. Berg and seconded to annex Lakeview
Drive and Sawmill Circle cul-de-sacs. Motion failed by unanimous
roll call vote.
Mr. Smith stated, just for clarification, that he did not think
it could be annexed without a vote of the people.
E. System additions:
Mr. MacFarlane explained that these should have been part of the
staff report. The Woodland Acres 6th Addition improvement
start-up and contract is under investigation by staff. A
discussion ensured regarding a memo dated January 12, 1989,
regarding Mr. Rauwolf. Mr. MacFarlane was instructed to report
back to the Board.
(The Board recessed for an eight minute break.)
8. NEW BUSINESS
A. Utility service with the City of Kodiak contract:
Acknowledged receipt.
B. Maintenance contracts:
This agenda item had already been discussed.
C. Resignation of Otto (Ole) Mahle from SD 111 Board:
After discussion, it was the position of the Board to wait until
after the filing date in October when a new member could be
appointed at that time.
A motion was made by Mr. Berg and seconded to accept Mr. Mahle's
resignation. Motion carried by unanimous voice vote.
D.I. Request for annexation to SD ill from Abercrombie State Park
and Ram Site:
A motion was made by Mr. Chandler to table the request for
annexation by Abercrombie State Park and Ram Site. The motion
died for lack of a second.
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D.2. Request for annexation to SD #1 from the Natives of Kodiak
of the Spruce Cape properties:
Mr. Arndt said he had brought to the attention of Tony Drabeck
that he would have to request annexation in order to get
services.
Mr. MacFarlane said it is not unreasonable to ask for a
preliminary plat.
After further discussion, it was felt it is important to take
action at this time and put it on the ballot for October. The
fire protection would have to be provided by the fire district.
Mr. Millard said he though it would be appropriate to annex the
areas as a future tax base, that there are not too many areas
that would be compatible with our systems.
Mr. MacFarlane objected to Mr. Millard's remarks.
Mr. Arndt recognized Mr. Millard as a member of the District and
the audience and instructed the secretary to make note of Mr.
MacFarlane's objection.
Mr. Millard continued that the urgency that he believes is being
stressed is the deadline for that which is acknowledge for finals
to be put on that, and that he believed that is what they are
looking at for the October election.
A motion was made by Mr. Berg and seconded to place the Natives
of Kodiak's request on the ballot. Motion carried by unanimous
voice vote.
9. ADDITIONAL AUDIENCE COMMENTS
Prow"
10. FACILITIES COORDINATOR'S COMMENTS
None.
11. BOARD MEMBERS' COMMENTS
Mr. Arndt stated, for the record, during recess a letter that Mr.
Crowe wrote outlining distribution of funds and presented at the
last noon meeting was discussed. Mr. MacFarlane had been asked
to do a follow-up. What is done with sewer and water will be an
additive alternate in looping that system. Direction has been
given to the new staff to look into that.
Mr. Berg asked Mr. MacFarlane if it is his intention to
participate in all meetings.
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12.
Mr. MacFarlane replied that he would be for the next few
meetings.
Mr. Berg said he appreciates staff involvement.
Mr. Chandler said he thought the Service District is big enough
and did not think park business should be brought into it. He
was told that it had died on the table.
Meeting adjourned at 9:40 p.m.
Minutes signed by:
Scott Arndt, Acting Chairman Date
Donna Smith, Secretary Date
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