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1989-06-01 Regular Meeting=DIAS LELAND mown Regular Assembly Meeting June 1, 1989 A regular meeting of the Kodiak Island Borough Assembly was held June 1, 1989, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 3:35 p.m. (A verbatim record is on file in the Clerk's office) The Pledge of Allegiance was led by Lorne White. There were present: ROLL CALL Lorne White, Presiding Ann Barker Wayne Stevens APPROVAL OP AGENDA STEVENS, seconded by MERRIMAN MOTION CARRIED Alan Austerman Tom Merriman Absent: Jack McFarland (Excused) John Parker (Excused) comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Linda Freed, Community Development Director Shirley Berns, Deputy Borough Clerk moved to approve agenda as submitted. Unanimous Voice Vote COST ACA APPROVAL OF CONSENT AGENDA The items on the consent agenda were read aloud by the Presiding Officer. STEVENS, moved to approve consent seconded by BARKER agenda as submitted. MOTION CARRIED Unanimous Voice Vote APPROVAL OP MINUTES A. K.L.B. Assembly Regular Meeting of May 18, 1989. This item was previously approved under the "Consent Agenda." CITIZENS' COMMENTS Mayor Selby presented the Employee of the Month award to Shirley Berns, Deputy Borough Clerk. Jim Fisk, chairman of Service District No. 1, voiced his opinion that the borough should not disposal of borough land for less than fair market value to the city of Kodiak in view of the city's recent unfair increase of water and sewer rates to Service District No. 1. Referring to the Materials Sales Contract assignment, he asked the assembly to remember that Felton Construction played a necessary role in Kodiak by providing competition in the gravel and concrete business. He requested the assembly give Felton a vote of confidence by assigning the contract to Aleutian Materials, Inc. Mel Stephens, Brechan Enterprises attorney, referring to his June 1, 1989 memorandum to the assembly noted that he had attempted to clarify some of the issues which he thought the assembly should consider when deciding on the transfer of the Material Sales Contract. He felt the assembly should not be June 1, 1989 Page 86 REGULAR MEETING APPROVAL OF AGENDA APPROVAL OF MINUTES KIBS103870 CITIZENS' COMMENTS KIBS103871 Kodiak Island Borough Regular Assembly Meeting Minutes rushed into an ill- informed decision. He urged the assembly to CITIZENS' COMMENTS stop and demand answers to a number of questions. He thought (continued) these serious questions should be addressed in a thorough and detailed staff report. Noting Resource Manager Cassidy's memo- randum, his opinion that there were some violations on the Felton Material Sales Contract tracts was confirmed. He thought these violations should be cleared up before any assignment was made. He did not feel the issue of competition in the sand and gravel business was relevant. Jack Sedwick, Aleutian Materials, Inc. attorney, using a tenant and landlord analogy stated that in transferring this Materials Sales Contract to Aleutian Materials, Inc. the borough would have two parties who would be beholden to rectify of any existing problems on the tracts. He stated that Aleutian Materials had already addressed of many of the problems. He said the borough was giving up nothing by assigning this contract to Aleutian Materials Inc. because that company would then be responsible for cleaning up the lease and proceeded to explain about surety indemnification. He stated that any time there was a market in which competition was Limited, there was a potential for monopoly profits and this would occur in Kodiak if the assembly did not approve the assignment. Don Gonzales, vice president of Aleutian Materials, gave a brief background summary of the four share holders in Aleutian Materials, Inc. to illustrate their competency to operate a sand and gravel company. He pointed out that the company had spent $10,000 in the last month to clean up the lease tract just to demonstrate good faith. Dan Millard expressed his concern over the changes being made in Title 16 (Ordinance No. 89- 18 -0). He felt the cart was being placed before the horse by incorporating the engineering and facilities departments as a common line item in the budget before the ordinance was adopted. He commented that one change was to convey the borough engineer's review process to the mayor with the intent of streamlining the subdivision process. This would introduce two departments to the process which did not sound efficient to him. He felt the checks and balances system might be askew toward the administrative side. After pointing out several other proposed changes, he noted there had been no communication about these changes between the engineering- depart- ment and the mayor office. Tom Arminsky, permitting and right -of -way agent for the Alaska Power Authority, spoke in favor of Resolution No. 89 -39 -R disposing of borough land for less than fair market value to the Alaska Power Authority. Jim Fisk presented a wreath made of Veteran's buddy poppies to the assembly and said these poppies would be for sale by the Senior Citizens during June. He also notified the assembly about the increase in water and sewer rates by the city of Kodiak to Service District No. 1. He favored seeking legal proceedings against the city over these rate increases. Okey Chandler expressed his displeasure with the water and sewer rate increases by the city of Kodiak. Mel Stevens noted one of his clients was the city of Kodiak and he did not think it would be wise to start litigation over the water and sewer rate increases. He also noted there were resolu- tions on the agenda to pass land to a number of different people at less than fair market value. He said there was a clause which the city placed in similar resolutions to prevent the recipients of this land from reselling it at a later date for a profit. June 1, 1989 Page 87 KIBS103872 Kodiak Island Borough Regular Assembly Meeting Minutes Jim Graham, formerly with Felton Construction and construction owner, spoke in support of the transfer of the Material Sales Contract to Aleutian Materials, Inc. He thought it would be in the public's interest to have more than one gravel supplier in the area. Gene Ervin, president of Senior Citizens Board of Directors, thanked the assembly for their support during the past year. He said the center was requesting 820,000 for FY90, and this money would be used as a match for Title 3 grants from the state for meals and transportation services as well as to match for Title 5 grants for seniors to learn new job skills. comer= REPORTS COMMITTEE REPORTS Mary Lou Knudsen, Planning and Zoning representative, read a letter from the PAZ Commission offering comments in dealing with the proposed new direction in Title 16 (Ordinance No. 89- 18-0). The Commission stated to remove all references to a borough engineer in Title 16 and reassign these responsibilities to the borough mayor would not improve the subdivision process. Jim Fisk, chairman of Service District No. 1, reported that Mike Anderson had been granted another thirty day extension to his contract to finish the utility installation on Puffin Drive. He also noted there were twelve new starts in Service District No. 1 this summer. Alan Austerman, chairman of the Gear Storage Task Force, said the final draft with the task force's recommendations was in their packets for review and acceptance of the report would be made June 15, 1989. P®LIC MEWING PUBLIC HEARING A. Ordinance No. 89 -13-0 Levying Taxes On All Taxable Real And ORDINANCE Personal Property Within The Borough FOr The Expenses and NO. 89 -13-0 Liabilities Of The Borough For The Fiscal Year Commencing On The First Day Of July 1989 And Ending On The Thirtieth Day Of June 1990. MERRIMAN, moved to adopt Ordinance seconded by AUSTERMAN No. 89 -13 -0. The presiding officer called for public testimony. Alan Schmitt, member of Alaska Legal Services Corporation Board of Directors, supported the request for 813,850 in revenue sharing funds and thanked the assembly for their contributions in the past. He said the money was needed and local dollars went a long way to assure the continuity of an office in Kodiak. Marion Johnson, Director of the Kodiak Historical Society, said the society had requested $12,000 to help operate the Baranof Museum and the Erskine House. She stated the museum was a major tourist attraction and if tourism was to grow in Kodiak the museum must be open. She reported on the activities during 1988 -89. Jerry Wilson, Director of the Kodiak Arts Council, reported that he just returned from Anchorage where all the community arts agencies in the state were called for a pier panel review. He said'the Kodiak Arts Council received the highest ratings and was termed the most effective community arts agency in the state of Alaska. He attributed the council's development to the stable and continuous support from the city and borough and asked that this support be continued. June 1, 1989 Page 88 CITIZENS'CCMMENTS (continued) KIBS103873 Kodiak Island Borough Regular Assembly Meeting Minutes Douglas Dawson, vice president of the Kodiak Baptist Mission PUBLIC HEARING Board, thanked the assembly for their past support. He said the mission had served the youth of Alaska for 95 years primarily as ORDINANCE an orphanage. The emphasis was now changing direction and he NO. 89 -13 -0 explained the new program "Wings" which was initiated through the (continued help of the Kodiak Council on Alcoholism to aid young people with drug problems and rehabilitation. He asked the assembly to consider favorably the Mission's request. Diedre Bailey, Director of Resource and Program Development for the Kodiak Area Native Association, thanked the assembly for supporting the EMT program, the dorm program, and the KANA village clinics. She reviewed the EMT accomplishments during the past year and said the assembly's support would be greatly appreciated. Bill Herman, Kodiak Council on Alcoholism, stated KCA programs continued to be heavily utilized by borough residents. He said new cases referred from the court system to KCA had increased 42 percent between 1987 to 1988. He explained KCA programs and added local funds were needed in addition to the state funding. Kelly Law, general manager of public radio station KMKT, explained KMXT's grant request was $4,500 above last year's request in order to fund the translator system (Channel 9) to the villages. She reminded the assembly that when local or state funding was cut that reciprocal Federal funds were also cut. Barbara Rudio, city of Kodiak Public Library, said the library has offered the same quality library service to residents who live outside the city limits as they offer to residents of the city. In three different patron library surveys, results have shown that almost half of the people who visit the library each week live outside the city limits. She said the city would like the assembly to double or triple the amount usually given so the borough could come more into line with the number of borough residents using the library. Millie Sugita, Kodiak Health Center manager, requested support from the assembly to help pay for the center's telephone bills. She said an increase had been requested this year because the state would no longer accept "collect calls." She said the center gave immunizations to the majority of the children in Kodiak. The presiding officer called for a ten minute recess. The presiding officer reconvene the assembly. Mary Ann Wiedman, Kodiak Chapter of the American Red Cross, thanked the assembly for their gracious support during the last few years. She reported the Kodiak Red Cross chapter provided training to the residents of the community in first aid, CPR, water safety, swimming and small and major disaster relief. She said the local chapter would appreciate the assembly's support. Joan Galt, Director of Kodiak Respite Care, explained the Kodiak respite care was a grant program of the Association of Retarded Citizens that provided temporary in -home care for local families with developmentally, disabled, physically, or emotionally handicapped children. She added the primary purpose was to give parents breaks from their continuous responsibilities associated with caring for handicapped children. Any borough funds provided were used exclusively to give direct provider service and do not include any overhead expenses. The presiding officer closed the public testimony and reconvened the assembly. MERRIMAN, moved to amend Ordinance seconded by STEVENS No. 89 -13-0 by substitution. June 1, 1989 Page 89 KIBS103874 Kodiak Island Borough Regular Assembly Meeting Minutes VOTE ON MOTION TO MEND BY SUBSTITUTION PUBLIC HEARING Ayes: Austerman, Barker, Merriman, ORDINANCE Stevens, White NO. 89 -13-0 (continued) Noes: None MOTION CARRIED Unanimous Mayor Selby requested the assembly to amend the budget under B. Trust and Agency Funds to add $5,000 from the fund balance to Building Major Maintenance (027) as a revenue source; and under Expenditures, change "Allocated Projects" from $75,000 to $80,000 and designate for "Old Harbor School." He said this would assign the money to the Old Harbor School for repairs to the gymnasium in the old part of the school while the contractors were still in Old Harbor finishing up the new school. He explained that a major beam under the building had cracked and created a hole in the floor of the vocational education section of the school. The balance of the funds would be used to upgrade the exterior of the building (paint) to protect the investment in the structure. This money would not take care of all the problems with the gymnasium, he emphasized. STEVENS, seconded by BARKER Assemblyman Austerman said if the borough spent $80,000 on the Old Harbor School now and all the problems had not been addressed, he wondered about what amount of money would be needed to do an adequate job. He asked if the repairs were going to be piecemeal without knowing where it would lead. Mayor Selby pointed out that the problems with both the Port Lions School gymnasium which burned down and the Old Harbor School had been identified several years ago. He said there were substantial problems in the way the buildings were constructed which would not prevent water from seeping in behind the exterior wall boards and running under the buildings. In addition, Mayor Selby said. in Old Harbor there was a problem with a stream that flowed underground under the edge of the school building which caused water problems beneath the building. He reminded the assembly of an earlier discussion about the cost of correcting these problems at a cost of approximately $500,000. This repair work would be a part of that cost but still would not address the total reworking of the support system where dry rot was occurring. Assemblyman Austerman said he did not want to leave the impression that he did not want to repair the schools, but he was concerned about doing it on the spur of the moment. Other options for having the repair work done were discussed between the assemblymembers and the mayor. VOTE ON MOTION TO AMEND Ayes: • Noes: MOTION CARRIED BARKER, seconded by STEVENS moved to amend Ordinance No. 89 -13-0 under Trust and Agency Funds, Item 1 - Building Major Maintenance to add $5,000 under "Revenue" and allocate $80,000 to Old Harbor School under "Expenditures." Barker, Merriman, Stevens, Austerman, White None Unanimous moved to amend to add $5,000 to Line 010 - 143 - 510 -01 -11 - Borough Mayor to raise the Mayor's salary to $68,000. Jana 1, 1989 Page 90 Kodiak Island Borough Regular Assembly Meeting Minutes Assemblymember Barker explained her reason for requesting an increase to the mayor's salary was in considering his level of responsibility in comparison to other communities of Kodiak's size and scope, other communities have a far higher pay scale for the mayor. She said even in our own community, administrative positions in the school district and Mental Health Center were higher than the salary suggested for the mayor. Assemblyman Austerman said he did not agree with the salaries being paid by the other groups so he would have to vote against the motion. Assemblyman Merriman agreed with Assemblymember Barker that the mayor's salary was definitely below the others, but he thought to increase it by the suggested amount was significant and felt it should be done in stages. Also, he agreed with Assemblyman Austerman about the salaries of the other individuals who the mayor's salary was compared. He said he would have to vote against it. Assemblyman Stevens supported the motion and pointed out that the director of the Mental Health Center who reports to and through the mayor was making 510,000 more than the mayor and the Engineering /Facilities department head was at the same level as the mayor. He stated that it did not send the right signals to the individuals who work for you to have management staff payed less than the department heads who they managed. He did not feel the increase amount was inappropriate or excessive. VOTE ON MOTION TO AMEN Ayes: Noes: Stevens, Barker Merriman, Austerman, White MOTION FAILED 2 Ayes, 3 Noes Assemblyman Stevens said a question had been raised about the wisdom of consolidating the Facilities and Engineering Depart- ments. Referring. to a letter dated June 1, 1989 from the PlZ Commission expressing their concerns, he asked the mayor to comment from a management standpoint. In response, Mayor Selby said from a management standpoint, he did not think either option was functional. He thought the issue for the assembly was the philosophical one and said the PsZ Commission's letter nailed the philosophical issue right on the head. He said the issue was whether the borough was going to continue to provide an in -house engineering review and service to the public for a two hundred dollar fee; or was the borough going to push that service outside the borough into public sector. He said the indication he understood was that assembly thought this service was more appropriately done by private enterprise and not done at taxpayer expense. In response to Assemblyman Merriman's inquiry about the borough's liability, Mayor Selby stated if the borough was doing the final review on a subdivision that the borough was accepting some amount of liability. Discussion followed between the assembly, the mayor, and Linda Freed over the combining of the two departments. BARKER, moved to amend to add 52,000 seconded by STEVENS to Line 010 - 143 - 510 -01 -11 to make Mayor's salary 565,000. Assemblyman Austerman said he could not vote for this increase in salary based upon his convictions but added this was not a reflection on the mayor's ability. June 1, 1989 K1BS10 PUBLIC HEARING ORDINANCE NO. 89 -13-C (continued, Page 91 KIBS103876 Kodiak Ieland Borough Regular Assembly Meeting Minutes VOTE ON MOTION TO AMEND Ayes: Noes: Au8terman MOTION CARRIED 4 Ayes, 1 No VOTE ON MOTION TO ADOPT Ayes: Stevens, Barker, Merriman, White Austerman, Merriman, Stevens, White Noes: Barker MOTION CARRIED 4 Ayes, 1 No MESSAGES FROM 198 BOROUGH MAYOR Mayor Selby reported on the "Oiled" Mayor's meeting in Anchorage and thought there was some motion toward completing the agreement between the mayors and Exxon over the oil spill reimbursement. He said he had been working with local processors to prepare for the June meeting of the North Pacific Fisheries Council with regard to the pollock (bottomfish) issues. The idea was to submit a formal proposal on the shore base preference and have it adopted so it could be in place by next year. Also, the concept of having the Alaska Congressional delegation change the Magnusen Act to specifically specify shore base preference had been discussed. Also, Mayor Selby stated the K.I.B. Hospital had requested the borough serve as a conduit for purchasing some computer equipment. The purchase exceeded the $5,000 purchasing authority granted to the mayor and, therefore, assembly's approval is required. The hospital will remit the amount to the borough and the cost saving to the hospital will be close to $10,000. STEVENS, moved to authorize the mayor AUTHORIZE APPROVAL seconded by BARKER to approve purchase orders OF PURCHASE OF HOSPI 9609 and 9610 to purchase MICROCOMPUTER SYSTEM microcomputer system for the hospital in an amount NTE $11,055. The monies are to be expended from the K.I.B. hospital account. VOTE ON MOTION Ayes: Noes: MOTION CARRIED OLD ROSINESS Resolution No. 89 -32 -R Authorizing The Assignment Of A Materials Sales Contract In Womene Bay. MERRIMAN seconded by AUSTERMAN moved to remove from table Resolution No. 89 -32 -R. VOTE ON MOTION TO REMOVE FROM TABLE MOTION CARRIED Austerman, Barker, Merriman, Stevens, White None Unanimous Unanimous Voice Vote Assemblyman Austerman asked to have the performance bond procedure clarified. June 1, 1989 Page 92 PUBLIC HEARING ORDINANCE NO. 89 -13-0 (continued) MESSAGES FROM MAYOR OLD BUSINESS RESOLUTION NO. 89 -32 -R KIBS103877 Kodiak Island Borough Regular Assembly Meeting Minutes At the mayor's request, Tom Klinker explained the purpose of a OLD BUSINESS surety bond and the bond process. RESOLUTION Assemblyman Austerman still had reservations over transferring NO. 89 -32 -R the assignment of the gravel lease and wanted to have an (continued) attorney's opinion. He said there appeared to be two issues - one being the default and whether the assembly had the authoriza- tion to cancel the lease and rebid it, and the other issue being whether the borough should actively enforce the leases in place. He said if the borough was to adopt ordinances and have laws that these laws needed to be enforced. A discussion followed between the assemblymembers about the clean up of the tracts and the enforcement of the lease requirements. MERRIMAN, seconded by STEVENS VOTE ON MOTION TO TABLE Ayes: moved to table Resolution No. 89 -32 -R to June 15, 1989 regular assembly meeting and grant Felton Construction a thirty day extension to cure bonding default. Barker, Merriman, Stevens, Austerman, White Noes: None MOTION CARRIED Unanimous MEM BUSINESS NEW BUSINESS A. BID AWARDS BID AWARDS None B. RESOLUTIONS RESOLUTIONS Resolution No. 89 -34 -R Relating To The Issuance And RESOLUTION Sale Of 510,000,000 Of 1989 General Obligation School NO. 89 -34 -R Refunding Bonds Authorized By Ordinance No. 89 -11 -0; Fixing The Date, Terms, Maturities And Interest Rates For Said Bonds, Providing For The Use And Application Of The Proceeds Of Said Bonds; Providing For The Redemption Of Certain Outstanding Bonds Of The Borough; Authorizing The Execution Of An Escrow Agreement; And Approving The Execution Of A Bond Purchase Contract. MERRIMAN, moved to adopt Resolution seconded by STEVENS No. 89 -34 -R. Mayor Selby introduced Tom Klinker, legal counsel for the bond sale, and Sterling Gallagher, John Nuveen and Company. Tom Klinker, wohlforth, Argetsinger, Johnson s Brecht - K.I.B. Bond Counsel, explained that on April 6, 1989 the assembly approved Ordinance No. 89 -11-0 which authorized the refunding of the 1980 school bonds for the purpose of effecting debt service savings for the borough. He said Resolution 89 -34 -R fixed the specific terms of the bonds, interest rates, maturities, etc. as determined by the marketing of the bonds within the last couple of days.. Sterling Gallagher, vice - president of John Nuveen and Company, explained this bond issue came into existence as a result of the careful reading of the state reimbursement statutes. It was determined that the borough was eligible to move one of K.I.S. bond issues from a two -year lag payment to a current one by refunding it. In doing this the borough will pick up $2,000,000 in cash over the next two years (1990 -91) which would have been received in 2001 -02. This was the real result of the bond issue June 1, 1989 Page 93 Kodiak Island Borough Regular Assembly Meeting Minutes he remarked, and creates a net present value savings to the community of $1,000,000 on a $10,000,000 bond issue; so it is a significant savings. He explained the recent events which affected the bond sale and the disclosure on the bond issue. The market has improved, he stated, and the debt service saving straight will be $240,000 plus the use of $2,000,000. He felt the borough hit the market with its bond issue at just about the right time. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED STEVENS, seconded by MERRIMAN At presiding officer White's request cost savings to the borough over the VOTE ON MOTION TO ADOPT Ayes: Noes: AUSTERMAN, seconded by MERRIMAN VOTE ON MOTION TO ADOPT MOTION CARRIED STEVENS, Ayes: Noes: June 1, 1989 None MOTION CARRIES Unanimous KIBS103878 Merriman, Stevens, Austerman, Barker, White None Unanimous 2. Resolution No. 89 -35 -R Electing To Participate In The RESOLUTION Retirement Incentive Program (RIP), Chapter 26, SLA 1986, And Authorizing The Mayor To Enter Into An N0. 89 -35 -R Agreement With The Administrator Of The Public Employee's Retirement System (PERS) To Fund The Cost Of Participation In The RIP. moved to adopt Resolution No. 89 -35 -R. , Mayor Selby explained the next three years. Stevens, Austerman, Barker, Merriman, White None MOTION CARRIED Unanimous Resolution No. 89 -36 -R Designating The Mayor And /or The Finance Director As Acting Clerks For The Purpose Of The Closing Of The $10,000,000 School Bond Sale. moved to adopt Resolution No. 89 -36 -R. NEW BUSINESS RESOLUTION NO. 89 -34 -R (continued) RESOLUTION NO. 89 -36 -R Unanimous Voice Vote 4. Resolution No. 89 -37 -R Effecting Certain Budget Changes RESOLUTION In Capital Projects. NO. 89 -37 -R moved to adopt Resolution seconded by MERRIMAN No. 89 -37 -R. Mayor Selby explained this was a housekeeping resolution to move $35,000 to East Elementary to close out construction projects, and also, to close out Lilly Drive Phase II and identify a separate project called Sharatin Road /Perenosa Drive to receive the balance of the grant funds which were not expended. This action will set up a line item and split up the money on paper but does not authorize constructing the road. VOTE ON MOTION TO ADOPT Austerman, Barker, Merriman, Stevens, White Page 94 Kodiak Island Borough Regular Assembly Meeting Minutes 5. Resolution No. 89 -38 -R Authorizing The Disposal Of Borough Land For Less Than Fair Market Value To The City Of Kodiak For Public Purposes. AUSTERMAN, moved to adopt Resolution seconded by STEVENS No. 89 -38 -R. At Assemblyman Stevens' request, Mayor Selby explained this resolution transfers land at the municipal airport on Lilly Lake which is owned by the borough to the city of Kodiak. VOTE ON MOTION TO ADOPT MOTION CARRIED Unanimous Voice Vote 6. Resolution No. 89 -39 -R Authorizing The Disposal Of Borough Land For Less Than Fair Market Value To The Alaska Power Authority For Public Purposes. BARKER, moved to adopt Resolution seconded by STEVENS No. 89 -39 -R. Mayor Selby clarified that the borough sold property to the Alaska Power Authority for the powerhouse at the Terror Lake hydro project. During the surveying process, it was discovered that buildings adjacent to the powerhouse were on borough land and this resolution would transfer that land to APA. Assemblyman Merriman referring to comments made earlier by Mel Stephens about land being resold by the receiving party at a considerable profit, said he would like to add a condition that the land reverted back to the borough if it was not use for stipulated purposes. MERRIMAN, seconded by STEVENS VOTE ON MOTION TO AMEND MOTION CARRIED VOTE ON MOTION TO ADOPT AS AMENDED move to amend Resolution No. 89 -39 -R to insert a condition to read: "If it is determined by the borough that the easement described within the the resolution is not used for electrical power purposes, said easement shall be revoked by the borough." Unanimous Voice Vote MOTION CARRIED Unanimous Voice Vote 7. Resolution No. 89 -40 -R Authorizing The Disposal Of Borough Land For Less Than Fair Market Value To The Kodiak Electric Association For Public Purposes. MERRIMAN, moved to adopt Resolution seconded by STEVENS No. 89 -40 -R. Mayor Selby explained this land disposal would transfer the use of land in the Bells Flats area to KEA so they could run an overhead line across Russian Creek. He said KEA had experienced problems with the underwater line washing out when the Russian River changed course. KEA proposed to install the electric poles, run the lines overhead, and then return the lines underground on both sides of the river. June 1, 1989 Page 95 KIBS103879 NEW BUSINESS RESOLUTION NO. 89 -38 -R' RESOLUTION NO. 89 -39 -R RESOLUTION NO. 89 -40 -R VOTE ON MOTION TO AMEND MOTION CARRIED AUSTERMAN, seconded by MERRIMAN VOTE ON MOTION TO AMEND MOTION CARRIED VOTE ON MOTION TO ADOPT AS AMENDED MOTION CARRIED BARKER, seconded by MERRIMAN VOTE ON MOTION Ayes: Noes: Kodiak Island Borough Regular Assembly Meeting Minutes STEVENS, seconded by MERRIMAN MOTION CARRIED MERRIMAN, June 1, 1989 KIBS103880 Resolution No. 89 -41 -R To Level Changes For The Day The FY1989 Budget. moved to adopt Resolution No. 89 -41 -R. Another housekeeping item according to Mayor Selby. The Borough received grant funds in the amount $54,330 more than originally budgeted for the Day Care Assistance Program and this resolution would revise the total grant figure received to 6239,330 from the state of Alaska. MERRIMAN, seconded by STEVENS No. 89 -43 -R. moved to amend to add a condition to allow overhead lines only for the purpose of crossing the stream bed and at that point which the powerline was outside the stream bed, the line would go back underground which would be consistent with the electrical system in the neighborhood. Unanimous Voice Vote moved to amend to add a condition about land reverting to borough if the easement was not used for electrical power purposes. Unanimous Voice Vote Unanimous Voice Vote Effect Certain Department Care Assistance Program In Barker, Merriman, Stevens, Austerman, White None Unanimous 9. Resolution No. 89 -42 -R To Effect Certain Department Level Changes For The Mental Health Department In The FY1989 Budget. moved to adopt Resolution seconded by BARKER No. 89 -42 -R. Again, Mayor Selby explained this housekeeping item was to make some changes which occurred during the year to prepare for audit. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote 10. Resolution No. 89 -43 -R Authorizing A One -Time (Single -Year) Reduction To Property Taxes. moved to adopt Resolution Page 96 NEW BUSINESS RESOLUTION NO. 89 -40 -R (continued) RESOLUTION NO. 89 -41 -R RESOLUTION N0. 89 -42 -R RESOLUTION NO. 89 -43 -R Kodiak Island Borough Regular Assembly Meeting Minutes VOTE ON MOTION MOTION CARRIED ORDINANCES FOR INTRODUCTION STEVENS, seconded by MERRIMAN Noes: MOTION CARRIED BARKER, seconded by STEVENS VOTE ON MOTION MOTION CARRIED MERRIMAN, seconded by AUSTERMAN June 1, 1989 Unan mous Voice Vote 1. Ordinance No. 89 -16-0 Rezoning Portions Of Tract A, U. S. Survey 4872, Larsen Bay Townsite, FROM R -1 -- Single - Family Residential TO PL-- Public Use Land. This item was previously approved in first reading under the "Consent Agenda." 2. Ordinance No. 89 -17 -0 Amending Kodiak Island Borough Code Section 8.20.030, Solid Waste Collection And Disposal Required. moved to adopt Ordinance No. 89 -17 -0 in first reading. Assemblyman Stevens explained this ordinance was a code change dealing specifically to prevent off -site burning of construction and other waste materials. A discussion followed about the provisions in the ordinance for obtaining permits for burning between the assemblymembers. VOTE ON MOTION Ayes: Merriman, Stevens, Austerman, Barker, White Norte Unanimous 3. Ordinance No. 89 -18 -0 Amending Title 16, Subdivisions moved to adopt Ordinance NO. 89 -18-0 in first reading. Unanimous Voice Vote 4. Ordinance No. 89 -19 -0 Amending Kodiak Island Borough Code Chapter 2.22, Borough Engineering And Chapter 2.34, Facilities Department moved to adopt in first reading Ordinance No. 89 -19 -0. Assemblyman Austerman stated he had a bit of a problem discerning what the ordinance stated. Be said he felt strongly about the initial concept and felt this is what the assembly wanted, but he hoped before the second reading that the assembly could get into a good hard discussion about the consolidation of departments and make any necessary changes to assure the concept works. VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote The presiding officer called for a ten minute recess. KIBS103881 NEW BUSINESS RESOLUTION NO. 89 -43 -R (continued` ORDINANCES FUA INTRODUCTION ORDINANCE NO. 89 -16-0 ORDINANCE NO. 89 -17-0 ORDINANCE NO. 89 -18 -0 ORDINANCE NO. 89 -19-0 Page 97 Kodiak Island Borough Regular Assembly Meeting Minutes The presiding officer reconvened the assembly. Ordinance No. 89 -20-0 Accepting and Adopting the Compensation Study Recommended by the Personnel Advisory Board. BARKER, moved to adopt Ordinance seconded by STEVENS No. 89 -20-0 in first reading. At Assemblyman Austerman's request, Mayor Selby explained the ordinance adopted the compensation study that the Personnel Advisory Board spent the greater portion of two years looking at internal relationships of salaries to try to make them as equitable as possible within the K.I.B. structure. He explained the rating system used to determine the duties and responsibilities for each position. Mayor Selby clarified several items for the assembly. VOTE ON MOTION MOTION CARRIED D. OTHER ITEMS MERRIMAN, seconded by BARKER VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote 2. Certification of K.I.B. Taxable Property for Tax Year 1989. MERRIMAN, seconded by STEVENS VOTE ON MOTION MOTION CARRIED AUSTERMAN, seconded by BARKER Noes: MOTION CARRIED June 1, 1989 KIBS103882 Unanimous Voice Vote Mike Anderson - Request for Reimbursement of Road Maintenance Costs (Woodland Acres Subdivision, Seventh Addition Utilities Improvements) move to reimburse Mike Anderson the costs of Road Maintenance. move to certify the K.I.B. Taxable Property for Tax Year 1989. Unanimous Voice Vote Request Approval for an Amendment to Mills, John, And Rigdon, Architects' Contract on the new K.I.B. Hospital. moved to approve an amend- ment to Mills, John, and Rigdon, Architects' contract for completion of the architectural contract on the new K.I.B. Hospital in an amount NTE $58,033. VOTE ON MOTION Ayes: Stevens, Austerman, Barker, Merriman, White None Unanimous Page 98 NEW BUSINESS ORDINANCE NO. 89 -20-0 OTHER ITEMS REQUEST FOR ROAD MAINTENANCE COSTS REIMBURSEMENT - MIKE ANDERSON CERTIFICATION OF K.I.B. TAXABLE PROPERTY - 1989 MILLS JOHN, AND RIGDON, ARCHITECTS CONTRACT AMENDMENT Kodiak Island Borough Regular Assembly Meeting Minutes 4. Request for Authorization to Advertise For Bid Construction of Sharatin Road and Carroll Way, Kodiak Alaska Subdivision, First Addition. MERRIMAN, seconded by AUSTERMAN Assemblyman Aueterman inquired if the wetlands permits should be in place before advertising of bids to construct the road. Mayor Selby responded that if some insurmountable wetlands problems arose that the borough could reject any and all bide VOTE ON MOTION MOTION CARRIED Unanimous Voice Vote 5. Authorization to Approve Solicitations of Proposals for the Improvements in the K.I.B. Apartments. BARKER, seconded by STEVENS At presiding officer White's request, Mayor Selby explained the plan for improvements to the borough apartment complex. He said if a major upgrade were to be done the cost would be $700,000. The state legislature reappropriated $130,000 from the funds from the Kodiak heliport construction and this money will be used for the improvements. VOTE ON MOTION MOTION CARRIED INTONnInYL IYMW8 (No action required) A. MINUTES OF OTHER MEETINGS 1. K.I.B. Mental Health Center Advisory Board Regular Meeting of March 28, 1989. K.I.B. School District Special Meeting of May 8, 1989 and Regular Meeting of April 24, 1989. K.I.S. Planning and Zoning Commission Regular Meeting of May 17, 1989. CITIZENS COMERS Jim Fisk declared in approving Mike Anderson's request for reim- bursement of road maintenance costs over the Service District No. 1 objections, the assembly had set an example that would be very damaging. He said the service district had guidelines which they followed when making decisions. He circulated photographs of the Puffin Drive project and explained the background surrounding the dispute with Mr. Anderson and the Puffin Drive project. He asked the assembly to reconsider their decision. AUSTERMAN, seconded by STEVENS VOTE ON MOTION MOTION CARRIED June 1, 1989 KIBS103883 moved to authorize the advertisement for bid on construction of Sharatin Road and Carroll Way. moved to authorize for written bids for improvements in the K.I.B. Apartments. Unanimous Voice Vote move to extend assembly meeting to 11:45 p.m. Unanimous Voice Vote NEW BUSINESS AUTHORIZE ADVERTISE- MENT FOR sir CONSTRUCTI( SHARATIN RO.. AUTHORIZE RFP IMPROVEMENTS K.I.B. APARTMENTS INFORMATIONAL MATERIALS MINUTES OF OT'J R MEETINGS CITIZENS' COMMENTS Page 99 Kodiak Island Borough Regular Assembly Meeting Minutes ASSEMBLYMEN C.TS Assemblyman Aueterman requested a discussion with Mr. Cassidy at the June 8, 1989 work session about the Materials Sales Contract in Womene Bay on what the contract actually was, what it entailed, and what type of action the assembly wants to give to staff to clean up the leases. He would also like an interruption of the wording in the lease contract. He requested a date be set to discuss the changes being made to Title 16 so he might gain a better understanding of these changes. Assemblyman Stevens explained that sometime back the assembly had the opportunity to meet with the employees of the borough and during the meeting the employees expressed concerns about a number of issues. Subsequent to this meeting the assembly passed a resolution indicating the assembly's intent to met with the employees to resolve these concerns. He said it was the assembly's intent to hold a meeting with the employees on Monday, June 5, 1989 from 10:00 a.m. to noon. Presiding Officer White commented the reason that he voted for the Retirement Incentive Program this time was because he felt it would be inconsistent to have offered it to earlier employees and not offer it this time. He declared one of the assembly's goals was to keep a consistent mill levy which has been done. He reviewed changes in the borough's budget which reflected the changes being made in borough staff. He announced several meetings of the assembly. AWOWdIEME There being no further business to come before the assembly, the meeting adjourned at 11:45 p.m. ATTEST: Bo ough,�C lFfk\IC1-42-tf:::::7-- June 1, 1989 KIBS 103884 Presiding Officer Page 100 ASSEMBLYMEN'S COMMENTS ADJOURNMENT