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1989-05-18 Regular MeetingAbsent: KODIAK ISLAND SOROD® Regular Assembly Meeting May 18, 1989 A regular meeting of the Kodiak Island Borough Assembly was held May 18, 1989 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:41 p.m. (A verbatim record is on file in the Clerk's office) The invocation was given by Pastor Douglas Edwards of the Frontier Baptist Church, followed by the Pledge of Allegiance. There were present: ROLL CALL Lorne White, Presiding Ann Barker John Parker Wayne Stevens Alan Austernan (Excused) Jack McFarland (Excused) Tom Merriman (Excused) comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Shirley Berns, Deputy Borough Clerk APPROVAL OP AGENDA BARKER, moved to withdraw Resolution seconded by STEVENS No. 89 -34 -R from agenda. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote PARKER, moved to approve agenda as seconded by STEVENS amended. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote CONSENT AGENDA The items on the consent agenda were read aloud by the Deputy Borough Clerk. STEVENS, moved to approve consent seconded by BARKER agenda. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote APPROVAL Or MOWER A. A.I.B. Assembly Regular Meeting of May 4, 1989. This item was previously approved under the "Consent Agenda." CITIZENS' camera Mel Stevens, attorney for Brechan Enterprises, spoke briefly on Resolution 89 -32 -R and asked the assembly to read his memorandum dated May 15, 1989 regarding authorizing the assignment of the material sales contracts in Womens Bay. He requested the assembly to table the resolution and to hold a public hearing since the matter would determine the rights to extract gravel from forty acres of borough property for the next 13 -18 years. He voiced his opinion that there were defaults under the present contract. KIBS103863 REGULAR MEETING APPROVAL OF AGENDA CONSENT AGENDA APPROVAL OF MINUTES May 18, 1989 Page 79 CITIZENS' COMMENTS KIBS10 Kodiak Island Borough Regular Assembly Meeting Minutes CITIZENS' COWEN= (continued) CITIZENS' COMMENTS John Zbitnoff, area manager for Felton Construction Company, distributed copies of a letter regarding their gravel lease in Womene Bay. He stated that Felton Construction Company had been actively involved in construction projects in Kodiak since 1970 and had competitively sold sand, gravel, and concrete from the Bells Flats operation since the leases were assigned in 1982. He said when the leases were given in 1982 there were two bids for two separate parcels. He pointed out that Felton Construction had invested a great deal of money in the development of the tracts in Bells Flats and had met the requirements of the sales contract. He added the sale and transfer of this lease by Felton Construction would be a way for the company to recapture a portion of that investment. If the resolution were to be tabled, he asked the assembly to extend the default dates for a reasonable amount of time after the assembly acted on the lease transfer to enable Felton the time necessary to make certain the leases transferred properly. Mike Brechan, representing Brechan Enterprises, said he respected Mr. Zbitnoff's position but felt that he had not been in Kodiak throughout the development of this situation. He questioned the validity of Mr. Zbitnoff's statement concerning the depth of excavation. From his standpoint, he said that he felt Felton Construction Company was in default of their lease provisions and had failed to comply with the intent of the organization and development plan for the area. He thought it was in the best interest of the borough to readvertise the leases to insure the terms of the original plan were met. In view of the infractions by Felton Construction, he thought there would be no guarantee that things would change if the leases were transferred. Don Gonzales, vice - president of Aleutian Materials, Inc., stated his company had purchased the rights and leases from Felton Construction Company. He thought the essence of the leases were to create completion and pointed out the only objections to the transfer of the leases was from the competing company. He felt the only reason the assembly might withhold consent on transferring these leases was if Aleutian Materials, Inc. could not perform the contract adequately. He presented a brief history about his company. John Zbitnoff disagreed with a statement by Mr. Brechan and referred to a letter from Eckland Surveying addressing the depth of the gravel pit in Bells Flats. Also, he pointed out there were violations of the materials sales contract by both companies. He said his response to these deficiencies were contained in the letter distributed to the assembly earlier in the meeting. Mel Stevens stated the transfer of these leases should have been advertised. He thought it made more sense for the assembly to obtain a report on the status of the material sales contract from the staff and then to set a date for a public hearing. Mike Brechan said the borough should take another look at the leases and the Bells Flats site and requested a public hearing. COMMITTEE =POETS COMMITTEE REPORTS Mary Lou Knudsen, representing the Planning and Zoning Commission, said the PAZ agenda for the month of May had been slow. PUBLIC NMBIac Ordinance No. 89 -15 -0 Establishing An Emergency Fund To ORDINANCE Accumulate Costs Of The Oil Spill Disaster And Appropriating NO. 89 -15 -0 Oil Spill Cleanup Grant Funds Received From The State Of Alaska and Exxon Shipping Company. PARKER, moved to adopt Ordinance seconded by STEVENS No. 89 -15 -0. PUBLIC HEARING May 18, 1989 Page 80 KIBS103865 Kodiak Island Borough Regular Assembly Meeting Minutes The presiding officer called for public testimony; there being PUBLIC HEARING none, the assembly was reconvened. Assemblyman Parker felt the ordinance was a house keeping matter ORDINANCE and foresaw no problems with passing it. NO. 89 -15 -0 At the request of Presiding Officer White, Mayor Selby reported on the expenditures of the Exxon Funds and said the mechanism seemed to be work effectively. VOTE ON MOTION Ayes: Barker, Parker, Stevens, White None Unanimous Noes: MOTION CARRIED MESSAGES FROM TEE DEMME MAYOR Mayor Selby announced the nineteen K.I.B. school building asbestos plans which were required to be submitted to the state of Alaska had been accepted and approved. To date, he said the Kodiak Island Borough was the only borough to have all plans accepted, and these plans had received rave reviews for completeness and quality of plan. He attributed these reviews to the fact that the staff had done a good job. He reported the Old Harbor School contained asbestos which had to be removed and said there was money in the budget to cover the cost of removing it. When Interior Secretary Lujan and Congressman Young were in Kodiak, he noted that a resolution had been delivered to them requesting that oil lease sale A114 in the Gulf of Alaska be delayed. He said it was announced yesterday this sale was being delayed indefinitely until assessment of the Prince William Sound oil spill could be completed. More good news reported by Mayor Selby was that the borough had received an insurance rebate check amounting to $106,395 and attributed it to holding regular safety meetings with the staff and having an accident free staff in both the school district and the borough. He offered commendations to the staff in both organizations. He reported on a meeting which he attended in Anchorage with the mayors from other oil- impacted communities. He said the Exxon officials had not signed the municipal agreement regarding the advance funds issue and the straight time. It had been discov- ered that there had been considerable variance in the way in which different communities were being treated by Exxon. The intent of the agreement was to arrive at a common base of inter- action between Exxon and the communities, he added. Mayor Selby said there had been discussion about long term effect compensa- tion for communities, fisherman, etc. and more work was needed. OLD BOSI10<66 A. Kodiak High School Lockers Bid Award. STEVENS, seconded by BARKER • moved to remove from table Kodiak High School Lockers Bid Award. Assemblyman Parker reminded the assembly that they had asked the staff to advertise this bid and that procedure had not been followed. He thought it would be appropriate for the assembly to defeat the award and require staff to follow procedures as outlined in borough ordinances. May 18, 1989 Page 81 MESSAGES FROM MAYOR OLD BUSINESS HIGH SCHOOL LOCKERS BID AWARD Kodiak Island Borough Regular Assembly Meeting Minutes VOTE ON MOTION Ayes: Noes: None MOTION FAILED Unanimous STEVENS moved to reject all bids and seconded by PARKER authorize staff to rebid. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote NEVI BUSINESS NEW BUSINESS BID AWARDS BID AWARDS None RESOLUTIONS RESOLUTIONS 1. Resolution No. 89 -30 -R Requesting Congress Reject The RESOLUTION Plan Presented By The National Weather Service. NO. 89 -30 -R This item was approved under "Consent Agenda." Resolution No. 89 -31 -R Authorizing An Extension Of A RESOLUTION Lease For Dry Dump Operations. NO. 89 -31 -R BARKER, moved to adopt Resolution seconded by STEVENS No. 89 -31 -R. At Assemblyman Steven's request, Mayor Selby explained a three year extension to the lease at Smokey's dump was being proposed. He said the Kodiak Auto Wrecking and Salvage Company had acquired a car crusher and had been shipping crushed cars off island on a regular basis. It has been estimated that it would take approx- imately three years to finish crushing all the vehicles on site, hence, the request for this extension. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote The presiding officer called for a fifteen minute recess. The presiding officer reconvened the assembly. 3. Resolution No. 89 -32 -R Authorizing The Assignment Of A RESOLUTION Materials Sales Contract In Womens Bay. NO. 89 - - BARKER, moved to adopt Resolution seconded by STEVENS No. 89 -32 -R. Assemblymember Barker explained that since quite a bit of material was given to the assembly tonight and since there was a short assembly, she would move to table this resolution. BARKER, seconded by STEVENS May 18, 1989 Page 92 KIBS10 Parker, Stevens, Barker, White moved to table Resolution No. 89 -32 -R to June 1, 1989 meeting and extend the May 31th deadline to cure the Bond Default until June 2, 1989. OLD BUSINESS HIGH SCHOOL LOCKERS BID AWARD (continued: Kodiak Island Borough Regular Assembly Meeting Minutes VOTE ON MOTION TO TABLE RESOLUTIONS Ayes: Stevens, Barker, Parker, RESOLUTION Noes: MOTION CARRIED PARKER, seconded by STEVENS VOTE ON MOTION KIBS103867 White NO. 89 -32 -R (continued) None Unanimous moved the resource staff be directed to inform all parties who are land gravel extraction lease holders of any current or alleged violations, and to report back to the assembly prior to the next meeting. MOTION CARRIED Unanimous Voice Vote Resolution No. 89 -33 -R Supporting The Administration RESOLUTION In The Class Action Suit Against Exxon. NO. 89 -33 -R Presiding Officer White read Resolution No. 89 -33 -R in its entirety. STEVENS, moved to adopt Resolution seconded by BARKER No. 89 -33 -R. At Assemblyman Steven's request, Mayor Selby explained that the class action suit was filed with the idea of getting the municipalities which have been impacted by the oil spill identified by the courts as a "class" which means several parties in a similar position as a result of the oil spill. The other main thing this suit would accomplish, he said, would be to put the borough attorneys into the selection process with the court. These attorneys would eventually end up actually managing the multiply law suits that will result from the Exxon Valdez oil spill, he declared Matt Jamin, borough attorney, said the mayor had presented a fairly good summary of the position the attorneys had been asked to espouse which was primarily protective. He stated more recently some other municipalities had joined with the borough and asked his firm to monitor their interests in connection with litigation. He added the borough had taken the position that it was one way to resolve disputes with Exxon. The primarily focus that the attorneys had been asked to adopt was to try to resolve the disputes they have through the claims process out of court. He added that it was important to be involved in the litigation form because a number of decisions in large toxic waste torts or class actions have been made fairly early in the litigation. VOTE ON MOTION Ayes: Barker, Stevens, White Noes: Parker MOTION FAILED 3 Ayes, 1 No May 18, 1989 Page 83 Kodiak Island Borough Regular Assembly Meeting Minutes This item was previously withdrawn from the agenda. C. ORDINANCES FOR INTRODUCTION None D. OTHER ITEMS 1. Authorization to Advertise For RFP For Animal Control Contract. STEVENS, seconded by BARKER VOTE ON MOTION Resolution No. 89 -34 -R Authorizing The Sale Of RESOLUTIONS $10,000,000 Principal Amount Of General Obligation Refunding Bonds, 1989 Series A, To Refund The Out- standing Balance Of The Kodiak Island Borough General RESOLUTION , Obligation School Refunding Bonds 1989, Series A; NO. 89 -34 -r Authorizing A Preliminary Official Statement, An Official Statement, An Indenture, A Reimbursement Agreement, A Remarketing Agreement And A Contract Of Purchase With Respect To The Bonds; And Determining Related Matters. moved to authorize staff to advertise for RFP for Animal Control Services for a three year period - July 1, 1989 through June 30, 1992. Assemblyman Stevens requested the staff to request three different levels for providing service. One at present level type of service (on call type basis); and one at the opposite end of the spectrum with full seven days a week type service; and a third level of service somewhere in between which would include a middle of the road approach such as 3 -4 days a week of actual monitoring or seven half days of routine patrol. He asked to have the costs associated with these three different levels of service be included in the request of proposals. Assemblyman Parker expressed his concern over the borough being tied to a three year contract and would like to see a two year contract. He thought the community's needs could change over three years. Mayor Selby pointed out that the contract could be modified if necessary. Ayes: Parker, Stevens, Barker, White Noes: None MOTION CARRIED Unanimous INFORMATIOAAL NMTmRIAIS (No action required) INFORMATIONAL MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER 1. Service District No.1 Board of Supervisors Regular MEETINGS Meeting Minutes of March 14, 1989 and Special Meeting of March 28, 1989. 2. K.I.B. Planning and Zoning Commission Regular Meeting of April 19, 1989. 3. Gear Storage Task Force Minutes of April 19, 1989. 4. Architectural Review Board/K.I.B. Assembly/K.I.B. Hospital Advisory Board Minutes Of April 14, 1989. REPORTS 1. K.I.B. Financial Report for April, 1989. 2. March Status Report - Community Development OTHER May 18, 1989 KIBS103868 ORDINANCES FOR INTRODUCTION OTHER ITEMS AUTHORIZATION TO ADVERTISE FOR RFP - ANIMAL CONTROL REPORTS OTHER Page 84 Kodiak Island Borough Regular Assembly Meeting Minutes CITIA®8' COMOINTS CITIZENS' COMMENTS John Zbitnoff requested the assembly to extend the time limit of default to June 10, 1989 to allow Felton Construction time to move on the action adopted by the assembly at its June 1 regular meeting. Mayor Selby thought there would be no problem because if an extension were needed following the action of the assembly at the June 1 meeting, the recommendation could be made at that time. He thought there was flexibility in the motion as it stood. Don Gonzales asked the extension of time be placed in the motion now and explained the reasons for his request. A discussion followed among Mr. Gonzales, the mayor, and the assembly about the need for the extension of time Mike Brechan thought the issue involved was whether or not the Felton Construction Company had performed and whether the assembly should turn around and allow another firm to promise to perform. He hoped the borough would be fair and stated that Felton Construction did indeed compete with Brechan Enterprises, but they did not play with the same set of rules as Brechan Enterprises did or at least felt the same obligation and commitment. He suggested the assembly could take a better position by advertising the leases and making it the obligation of the new producer to correct the deficiencies. ASSEMBLYMEN'S COMAS ASSEMBLYMEN'S COMMENTS Presiding Officer White noted that he was the only member who was on the assembly at the time when the gravel lease contract were signed. He said a lot of thought had gone into the condi- tions for putting the stipulations in the contract, and he hoped the staff could keep up with them. He thought it would be better to readvertise to get some competitive pricing because the value of the resource had increased. He announced there would be an assembly work session at 7:30 p.m. on Thursday, May 25, 1989 in the borough Conference Room, and the next regular assembly meeting would be held on Thursday, June 1, 1989 at 7:30 p.m. AD.RAISIBIENY ADJOURNMENT There being no further business to come before the assembly, the meeting adjourned at 9:00 p.m. ATTEST: 1 f Officer Officer Borough Cleat -'ems May 18, 1989 Page 85 KIBS103869