2001-05-20 Regular MeetingKODIAK ISLAND BOROUGH
BOARD OF EQUALIZATION METING
May 20, 20017:30 p.m.
Assembly Chambers
A meeting of the Kodiak Island Borough Board of Equalization was held on May 20, 2001, in the
Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting
was called to order at 7:30 p.m.
ROLL CALL
There were present:
Tim Hurley
Michael Machulsky
Cheryl McNeil
Carrie Morton
Jim Nagan
Absent:
Jim Carmichael
comprising a quorum of the Board; and
Geoff Mould, Borough Appraiser
Judi Nielsen, Borough Clerk
Nova Javier, Deputy Clerk
BOARD ORGANIZATION
NAGAN,
seconded by MORTON
VOTE ON MOTION
MOTION CARRIED
APPROVAL OF AGENDA
HURLEY,
seconded by NAGAN
VOTE ON MOTION
MOTION CARRIED
moved to nominate Cheryl McNeil as chair.
Unanimous voice vote
moved to approve the agenda.
Unanimous voice vote
ITEMS OF BUSINESS
A. Approval of Minutes of the 2000 Board of Equalization.
HURLEY,
seconded by NAGAN
VOTE ON MOTION
MOTION CARRIED
moved to approve the minutes as submitted.
Unanimous voice vote
Board of Equalization Meeting May 30, 2001
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B. Hearings
Appraiser Mould was sworn in by Clerk Nielsen. Appraiser Mould introduced the case.
Docket No. 1: Appeal No. 2001-01
Kodiak Fishmeal Company vs. Citizens of the Kodiak Island Borough
Appraiser Mould noted that the Appellant would not be present at the meeting. He explained
that the appeal was based on the May 15, 2000 property appraisal prepared by Moss Adams
Advisory Services of Seattle. It was important to note that the entire appraisal was predicated on
a critical assumption, stated on page two of the transmittal letter: " This appraisal specifically
assumes that subject real property is not utilized as a fishmeal processing plant, but is vacant and
available for any use."
Appraiser Mould also said the Moss Adams report utilized a 56% external obsolescence factor in
regard to the Steller sea lion ruling adversely impacting the groundfish fishery. He felt that the
future of the sea lion controversy was unknown and to accept the argument made by the appellant
and reduce the real property value would not be fair or equitable to taxpayers throughout the
Borough.
In response to Boardmember Hurley, Appraiser Mould said the real and personal property was
assessed using the same methodology as that used to assess other processing plants within the
Borough.
Appraiser Mould felt an adjustment to the personal property improvements assessed value from
$2,238, 200 to $2,031,300 was appropriate.
MACHULSKY, moved to adjust the personal property improvements
seconded by HURLEY assessed value from $2,238, 200 to $2,031,300.
VOTE ON MOTION TO ADJUST
Ayes: Hurley, Machulsky, McNeil, Morton, Nagan
Noes: None
MOTION CARRIED Unanimous
FINDINGS -OF -FACT: The chair ended the appeal hearing by stating the following:
"According to Appellate Rule 602, you, the appellant, or the Assessor has the right of appeal to
the Superior Court of the State of Alaska from our 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 today. Failure to do so will forever bar you from any appeal of this case."
Board of Equalization Meeting
May 30, 2001
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Docket No. 2: Appeal No. 2001-02
Thomas and Laura Kelly vs. Citizens of the Kodiak Island Boroueh
Mr. Thomas Kelly, appellant, was sworn in by Clerk Nielsen. He introduced the case.
Mr. Kelly said his original estimated market value on the appeal form was inaccurate and advised
that the amount should be changed from $193,000 to $185,000. He used his own labor and knew
the exact cost of building the home; therefore, an estimate should not be used. He urged the
Board to recognize his valuation as the full and true value of his property because that was the
total cost to purchase the land and construct the home. He was concerned that the land was
purchased for $29,500 and the assessor's appraisal within the same year increased to $32,500.
Boardmember Hurley considered that Mr. Kelly was looking at the total cost of the land and the
cost to construct the home as opposed to the fair market value or what the home could be sold
for.
In response to Boardmember McNeil, Mr. Kelly said the appraisal for the bank loan was not
relevant.
Boardmember Morton understood that Mr. Kelly used his own labor to build the home; however,
she realized that similar properties in the area were valued over $200,000.
Appraiser Mould said Mr. Kelly extended sewer and water to the property and incurred site
preparation costs for construction that created a modest increase so the land was valued at
$32,500. The property was originally assessed at $208,300 based on an average quality grade.
However, with the correct average/good quality grade classification the property should be
assessed at $227,800. The assessor determined to stay with the original assessed value because
there was some construction incompleteness when assessed.
Appraiser Mould asked the Board and Mr. Kelly to review the four comparables and noted the
cost per square foot for each home. He felt that adjusting the value to $193,000 would be an
injustice to other property owners. The contractors profit had to be accounted for and the home
would certainly sell for more than $193,000
FINDINGS -OF -FACT: No motion was forthcoming; the assessment was upheld. The chair
ended the appeal hearing by stating the following: "According to Appellate Rule 602, you, the
appellant, or the Assessor has the right of appeal to the Superior Court of the State of Alaska
from our 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 today. Failure to do so will
forever bar you from any appeal of this case."
In response to a request for a recess, Clerk Nielsen cautioned the Board not to discuss the issues
before the Board during recess. After a ten minute recess at 8:45 p.m., the Board was
reconvened.
Board of Equalization Meeting May 30, 2001
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REQUEST FOR BOARD APPROVAL OF APPEAL LATE FILING BY XEROX.
Appraiser Mould distributed copies of a faxed document to the Board and to the clerk's staff. He
said no one was present to represent the appellant.
FINDINGS -OF -FACT: No motion was forthcoming; the Board determined that Xerox was
able to comply with the appeal filing deadline.
GENERAL COMMENTS AND QUESTIONS
Per Kodiak Island Borough Code 3.20.050(E)(9) Certification: The Board shall certify its
actions to the assessor within seven days following its adjournment.
ADJOURNMENT
With no further business to come before the Board, the meeting was adjourned at 9:12 p.m.
Board of Equalization Meeting May 30, 2001
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