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1990-07-31 Regular MeetingC I SERVICE DISTRICT NO. 1 BOARD OF SUPERVISORS MINUTES July 31, 1990 - 7:30 p.m. Conference Room I. CALL TO ORDER AND ROLL CALL The meeting was called to order at 7:35 p.m. by Jim Fisk, Vice Chairman, in the absence of the Chairman. Roll Call was taken. MEMBERS PRESENT Scott Arndt Okie Chandler Jim Fisk Vern Berns MEMBERS ABSENT Jim Berg Tony Perez Earl Smith STAFF PRESENT Ray Camardella Kaye McClain Quorum established. The members absent were excused. II. AUDIENCE COMMENTS None. III. APPROVAL OF AGENDA The agenda was approved by consensus. IV. APPROVAL OF MINUTES A motion was made by Mr. Arndt, seconded by Mr. Berns, to approve the minutes of the meeting of July 3, 1990. Motion carried by unanimous vote. V. PUBLIC HEARING A Public Hearing was held on the transfer of Service District No. 1 Sewer and Water Improvements to the City of Kodiak. A recap of the history of Service District # 1 Water and Sewer was given by Mr. Fisk and Mr. Arndt. Mr. Fisk said in the past the Kodiak Island Borough has been discussing with the City of Kodiak the possible acquisition of the sewer and water. The City initiated an Ordinance, some time ago, to increase the water and sewer rates in the Service District. An agreement on lower rates were agreed upon. The Borough has been meeting with the City to discuss the City's acquisition of the water and sewer improvements. It was noted that $15,000,000 in grants monies have been spent during the 10 years of operation. Mr. Arndt stressed the importance of public input in the decision making process. Mr. Camardella cited the growth of the Service District # 1 hook-ups (750) as being one of the reasons the transfer is being considered. He noted the rate of hook-ups of city services is considerably less. He stated the maintenance is contracted out with the water and sewerage treatment being done by the city. Economically, it ends up that after experiencing growth like this area has, contracting out the entire business may not be the most economic or in the public interest. . Mr. Berns inquired as to the bargaining powers which would be retained by the Service District people. Mr. Arndt expressed they would have the same rights as those persons already receiving services from the city as residents. Mr. Arndt moved the adoption of the Agreement of Transfer for Service District # 1 Water and Sewer Improvements.. The motion was seconded by Mr. Berns. Audience comments were requested. Tom Hendel, property owner on Puffin Drive, stated the transfer appears to be a good idea. He said he was in favor of it. He asked about Item number six (6), Fund Balance, of the agreement. He asked how much was in the fund at present. It was explained there is approximately $800,000 in the account with pending projects which will ultimately expend the entire amount within Service District No. 1 boundaries. Chris Kinter, a resident of Seabreeze Circle, said "Transfer". Roy Fry, Mission Road, stated he was opposed to the transfer because he doesn't know enough about it to form an opinion. He felt there should be more open discussion of the pros and cons of the issue. Mr. Arndt moved to table his motion of adoption to the next meeting. The motion carried unanimously. VI. OLD BUSINESS None. VII. NEW BUSINESS Mr. Camardella recapped the history of the water problem at Spruce Cape Trailer Court, 2483 Spruce Cape Rd. He indicated the entire case file was at the disposal of the board and that they had received copies of several pertinent documents. He said the Assembly had referred the matter to the Service District for a recommendation. Chris Billings spoke outlining his perception of the problem. He stated he had been a property owner on the Island since 1970. He purchased the trailer court from Mr.Powell and plastic line had been installed prior to his purchase. In 1983 there was a break in the water line and he hired Quality Plumbing and Heating to do the repair work. They replaced the plastic line with copper line and reported the work completed. In 1987 he was told he had a water leak and again contacted Quality Plumbing and Heating and they said they would take care of it. In January Quality Plumbing and Heating told Mr. Billings r rd the problem was not in his lines. He found later it was. Brechan Enterprises was hired and repaired the leak. Mr. Billings stated he, his tenants and his wife, Ruth, have paid $53,000 in ten years to the Borough. Mr. Arndt asked Mr. Billings what he would consider to be a fair settlement on the unpaid balance ($10,000+) of the water bill. Mr. Billings responded, "Half, without interest." Mr. Chandler commented the Borough let it drag on and they were negligent. He indicated he would be willing to let each pay half of the bill. Mr. Berns asked if Mr. Billings had tried to reach the former owners of Quality Plumbing and Heating. Mr. Billings stated he had no knowledge of the whereabouts of the former owner. Mr. Arndt moved that the Billings' be allowed to pay half of their delinquent water bill. Mr. Chandler seconded the motion. Mr. Fisk indicated he had found the former owner of Quality Plumbing and Heating, Tom Terry, of Hansville, and offered the phone number to Mr. Billings. The motion was voted on and resulted in a tie vote. Mr. Arndt filed a Notice of Reconsideration, seconded by Mr. Chandler. The case will be considered again at the next meeting of the Service District. VII. AUDIENCE COMMENTS Tom Hendel said he wanted to make the Board of Supervisors aware of interest in paving some streets in Woodland Acres. Some of the residents are planning on passing a petition requesting paving. The petition will pass if agreeing property owners equal at least 50% of the valuation. Chris Kinter commented he was disgusted with the way the Service Board operated. He said they have done a lousy job on the roads and the tax increase hasn't helped a bit. VIII.BOARD MEMBER COMMENTS Mr. Chandler stated the city might take over the roads too, if the sewer and water was turned over to the city. He said to put the issue on the ballot. Mr. Arndt said the group was elected to intelligently look at the facts and not make snap judgements. Mr. Berns had no comments. Mr. Fisk stated we need public testimony and input on the water and sewer turn -over. He indicated all members of the Service District Board would welcome comments from residents of the area, in person or by phone, if they will be unable to attend the Public Hearing. IX. ADJOURNMENT Mr. Fisk adjourned the meeting at 8:35 p.m. Approved by: 2 y-YD Submitted by: