2006-05-16 Regular MeetingKODIAK ISLAND BOROUGH
BOARD OF EQUALIZATION MEETING
May 16, 2006, 7:30 p.m.
Assembly Chambers
A meeting of the Board of Equalization was held on May 16, 2006 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.
Present were Board members Karenia Hackett, Cheryl McNeil, Jim Nagan, Louise Stutes, and Cassandra Juenger.
Absent was Board member Tim Hurley. Staff present were Borough Assessor Tom Anderson, Borough Clerk Judi
Nielsen, and Assistant Clerk Jessica Basuel.
BOARD ORGANIZATION
MCNEIL moved to nominate Jim Nagan as chair, seconded by STUTES
Board member Nagan accepted the nomination.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY
APPROVAL OF AGENDA
NAGAN moved to approve the agenda, seconded by STUTES
VOICE VOTE ON MO TIONTO APPRO VE THE A GENDA CARRIED UNANIMOUSLY
ITEMS OF BUSINESS
A. Hearings
DOCKET #1 - Appeal withdrawn
DOCKET #2 — Appeal No. 2006-01 - Koncor Forest Products Co. vs. Kodiak Island Boroueh
Coyne VanderJack was sworn in by Clerk Nielsen.
VanderJack, representative for Koncor Forest Products Co. appealed the Borough's assessment and outlined the
three specific terms: 1) overburden, which is the layer above the road that turns into mud and is removed prior to
building the road; 2) sub grade, the layer of material that is removed for preparation for a running surface; and 3)
surfacing material is spread to smooth the road so that equipments can run on it. He said the rocks on Afognak were
very soft so heavy equipment crushes the rocks into mud and the roads were built not to last beyond the life of the
project.
Anderson was sworn in by Clerk Nielsen. Assessor Anderson provided pictures to the board.
Mr. VanderJack felt the assessment unfairly represented cost and conditions because the Marshall system was used
and his system of valuation was based on bluebook and greenbook formulas and applying a cost for Alaska. The
roads building are built to last to the life of the project. He said the roads are very old and worn out and serious
resurfacing was needed. The road should be put to bed, which means pulling the bridges, the old wom out culverts,
and crowning the roads, etc. He felt the assessment unfairly represented cost and conditions because the Marshall
system was different from contract.
Kodiak Island Borough BOE Minutes
May 16, 2006 Page 1
In response to various questions, Mr. VanderJack said the roads had another twenty years of life. The value of the
road was the cost to build or maintain the road. The roads were old. The component costs included wages, FICA,
worker's insurance, workers comp, overtime, and basic rate for the workers on the ground as well as supervisor were
included in the cost, and equipment, operating costs, shop costs, parts, supplies, tires, fuel, culverts, as well as
bridges were also included in the per mile rates.
In response to Anderson, Mr. VanderJack said the cost of the bridges did not include design or engineering.
Anderson asked if someone surveyed the proposed route for the roads and spent time to determine how the bridges
had to be placed. VanderJack said the engineer.
Anderson said at the earlier testimony, VanderJack mentioned the engineering cost was not included in the cost
estimate. VanderJack said the engineering time was calculated by applying 25% of the engineer's time spent on the
road system. Walking and flagging the road was left out of the appraisal.
Anderson said he relied on documents or evidence he had submitted. He had used Marshall valuation to estimate
the replacement cost of the roads. The estimate covered every type of improvement including labor and materials.
The roads had to be maintained within guidelines of the Alaska Forest Resources and Practices Act in that the
landing is considered part of a road.
VanderJack said he felt the Assessor was not using the right approach to the assessment.
Chair Nagan said the board shall determine whether the assessment is proper. The only grounds for adjustment are
proof of unequal, excessive, or improper valuation based on facts stated in the written appeal or proved at the
hearing.
If the assessment is held, no motion is necessary. A motion is only needed if a Board member feels the assessments
should be adjusted. Granting an appeal or part thereof shall require the concurring vote of at least three members of
the board.
The Board shall issue finding of fact and conclusions of law clearly stating the grounds upon which the Board relied
in reaching its decision.
STUTES', motion to lower the assessed value died for lack of a second.
There was no motion forthcoming; therefore, the Board upheld the Assessor's determination.
The Chair ended the appeal hearing by staring 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 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."
DOCKET #3 — Appeal No. 2006-06 — Whitestone Logging, Inc. (Personal Property)
Anderson said he reached agreement with the appellant and the appeal was withdrawn.
DOCKET #4 — Appeal No. 2006-04 — Venture Pacific. LLC vs. KIB — Appeal withdrawn
DOCKET #5 — Appeal Withdrawn
DOCKET #6 — Appeal Withdrawn
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Kodiak Island Borough BOE Minutes
May 16, 2006 Page 2
DOCKET #7 — Appeal No. 2006-08 - Kodiak Associates vs. Kodiak Island Borough
Anderson said he received a call this day from the appellant's representative Chris Robinson who indicated that the
notice of the hearing was not received until this date. Mr. Robinson requested that the Board reschedule the hearing
to another date.
Nielsen said the notice was mailed timely and so the Board could continue with the hearing if that was their
decision. Nielsen gave the oath to Mr. Robinson.
Mr. Robinson explained that the notice was not received until this date and he had not had an opportunity to prepare
for the hearing.
STUTES, moved to postpone Docket #7, Appeal No. 2006-08 to Tuesday, May 23, seconded by HACKETT
VOICE VOTE ON MOTION CARRIED FOUR TO ONE. MS JUENGER OPPOSED.
DOCKET #8 — Appeal No. 2006-07 — Dan Rohrer
Anderson said Mr. Rohrer spoke to Assistant Clerk Basuel and had decided not to contest the assessor's valuation.
Anderson read from Mr. Rohrer's letter that his property was assessed at $45,000 where other comparable lots were
assessed at $35,000.
There was no motion forthcoming; therefore, the Board upheld the Assessor's determination.
The Chair ended 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 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."
GENERAL COMMENTS AND QUESTIONS
There was general discussion to research placing time limits on appeal presentations.
ADJOURNMENT
HACKETT moved to adjourn the meeting, seconded by McNEIL
VOICE VOTE ONMOTION CARRIED UNANIMOUSLY
With no further business to come before the Board, the meeting was adjourned at 9:25 p.m.
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Jim Nagan, Chair
Judith A. Nielsen, C C
Borough Clerk
Approved:
Kodiak Island Borough BOE Minutes
May 16, 2006 Page 3