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1990-03-06 Regular MeetingKODIAK ISLAND BOROUGH Rescheduled Regular Assembly Meeting March 6, 1990 A rescheduled regular meeting of the Kodiak Island RESCHEDULED Borough Assembly was held on March 6, 1990 in the REGULAR MEETING Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:32 p.m. The Pledge of Allegiance was led by Lorne White, the Presiding Officer. There were present: Lorne White, Presiding Tom Merriman Gary Stevens Absent: Jack McFarland (Excused) Alan Austerman Mary Monroe One seat vacant comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Duane Dvorak, Acting Community Development Director Gaye J. Vaughan, Borough Clerk APPROVAL OF AGENDA MONROE, seconded by STEVENS AUSTERMAN, seconded by MERRIMAN VOTE ON MOTION TO AMEND Ayes: Noes: MOTION FAILED Regular Assembly Meeting March 6, 1090 moved to approve agenda as submitted. moved to amend Old Business to switch Item A and B. Austerman, Merriman, Stevens Monroe, White 3 Ayes, 2 Noes ROLL CALL APPROVAL OF AGENDA Volume XIII Page 56 VOTE ON MAIN MOTION Ayes: Noes: MOTION CARRIED Merriman, Monroe, Stevens, Austerman, White None Unanimous CONSENT AGENDA APPROVAL OF CONSENT AGENDA MERRIMAN, moved to approve seconded by AUSTERMAN consent agenda. MOTION CARRIED Unanimous Voice Vote APPROVAL OF MINUTES APPROVAL OF MINUTES A. Regular Assembly Meeting of February 15, 1990 This item was previously approved under the "Consent Agenda." CITIZENS' COMMENTS CITIZENS' COMMENTS A. Mayor Selby presented the Employee of Month EMPLOYEE OF THE Award to Karleton Short, an accountant in the MONTH Finance Department. B. Agenda Items Not Scheduled For Public Hearing. Bill Bulen, Buskin River Inn Owner, commenting on Resolution No. 90-19, stated how distressed he felt to be in an adversarial position with his elected officials. He asserted that he only wanted the best for Kodiak and thought the assembly should listen to the people before making a decision. Jim Fisk reviewed some of the past history of airlines flying into Kodiak and thought lower air fares were not the issue. He declared the state of Alaska was losing money on the airport and felt if the borough took over the airport that every taxpayer in the borough would be subsidizing it. He suggested the borough assembly communicate with Mark Air representatives. Regular Assembly Meeting Volume XIII March 6. 1090 Page 57 Chris Kinter, referring to Resolution No. 90-19, thought the assembly had not studied the issue as thoroughly as they might have and said the assembly had released only selective information which was favorable and had avoided the unfavorable facts. Mr. Kinter stated that contrary to popular belief, terminal ownership had nothing to do with airline competition and gave examples. Mike Rasmussen remarked that Resolution No. 90-19 reminded him of snake oil. He said there was always somebody who wanted to sell it and always somebody that wanted to buy it. He thought in the final analysis this resolution would not accomplish what the assembly wanted. He said the assembly was wrong by not entering into discussion with the businesses at the airport and wrong in spending taxpayer's money on the airport study. He thought the resolution to buy the airport terminal at any cost was not in the best interest of the people of the Kodiak Island Borough and would cause unnecessary expense, more borough employees, and severe complications to local businesses. He urged the assembly to vote it down. Ginny Austerman read a letter from the Board of Directors of the Kodiak Island Convention and Visitors Bureau supporting the assembly's actions toward improving the service, grounds, and facilities of the K.I.B. state airport. Mike Brechan, local businessman, spoke against reconsideration of accepting the airport management study. He said he had trouble with the concept of the borough competing with private enterprise and did not feel there was enough market in Kodiak to warrant additional competition. He did commend the assembly for facing a problem but thought more could be done through actions with the state. Wayne Stevens, Executive Director of the Kodiak Chamber of Commerce, went on record as supporting the concept of municipal ownership of terminal facilities at the airport. He said that after reconsideration by the CofC Board one provision was added to their endorsement and that was the issue should be placed before the voters. Scott Thompson reiterated his views for objecting to the borough taking over the airport management. Regular Assembly Meeting Volume %III March 6, 1090 Page 58 Dean Parkhurst stated that Mark Air Airlines did not want to get into a political battle with the borough and added that Mark Air was proceeding with a plan for a major remodel of the Kodiak airport facility regardless of the outcome of the adoption of Resolution No. 90-19. Mike Machulski felt Mark Air had a cavalier attitude toward providing services for Kodiak. He stated that he was against government getting into a private enterprise because in his opinion government could not run an enterprise with any kind of a profit. He did not feel the citizens of Kodiak could afford to run any part of the airport operation and voiced objection to the adoption of Resolution No. 90-19. He proposed the question be put to a vote. Stacie Peterson, airport business owner, opposed any additional involvement with borough government and, in particular, objected to the percentage of income that a business owner would be required to pay to support the borough staff. Joe Perrozzi, airport businessman, also opposed government involvement in the private sector and gave examples of the city of Kodiak's problems with the buying and owning property such as Bio Dry, Gibson Cove and Kodiak Western building. Sallie Rodeheaver, owner of Hertz Car and Truck Rental and Park 'N' Lock, opposed adoption of Resolution No. 90-19. Ed Mahoney voiced objection to adoption of Resolution No. 90-19. Nancy Frost urged reconsideration of Resolution No. 90-19 and added that all airline facilities at the airport could use upgrading. She countered earlier statements about a government entity taking over the operation of the airport facility as being a new idea by reading an excerpt from the Kodiak Retailers' Meeting Minutes of April, 1974 where the subject was discussed. She pointed out that all the resolution would do was to enable the borough to take the first step in ascertaining what the actual costs would be or even if the present owners wanted to sell their facilities. She added that the borough staff would have to come before the assembly again for authority to proceed. Regular Assembly Meeting Volume XIII March 6, 1090 Page 59 Eric Stirrup commended the assembly for their foresight in looking at options for the airport acquisition. He said Kodiak had the best economic future in the state and thought the issue should be put on a ballot to let the people decide. Bruce Garrett spoke in favor of adopting Resolution No. 90-12. He thought the citizens of the community were paying in one way or the other for the Alaska Airlines building to sit empty. He said he would support the issue going on the ballot if the assembly did not want to take the responsibility. Steve Rapalus urged the assembly to make a decision on adopting the airport management study tonight as he felt the issue was very complex and would be too confusing if placed on a ballot. Scott Arndt opposed the move to reconsider Resolution No. 90-12. He suggested the assembly should defeat the reconsideration and just acknowledge receipt of the airport management study. He said there were more pressing issues for the Kodiak Island Borough than getting into the airport business such as the upgrade on the high school, building a new elementary school, a new hospital, and the landfill problems. Mr. Lamont thought the borough should not be in airport business. Tom Hendel addressed Resolution No. 90-11 establishing the Pasagshak Road Service Area and said he would be available to answer any questions. He also stated that he had formally withdrawn his name from consideration in filling the vacancy on the assembly in order to pursue a previous commitment to the Kodiak Electric Association. Tom Martin thought it might be a good idea to place the airport management question before the voters so some of the facts and figures could be made known about the rates for the use of the facilities. Ken Daniels voiced his objection to borough government competing with private enterprise. Okev Chandler thought Kodiak Air providing five flights a were going up everyplace. He airlines would come to Kodiak a fancy airport facility. He Resolution No. 90-19. was lucky to have Mark day and thought fares did not feel another just because there was opposed adoption of Regular Assembly Meeting Volume XIII March 6, 1090 Page 60 Gary Peterson voiced opposition to the borough taking over the airport terminal and parking facilities. He said the cost to travelers with the borough operating the airport facilities would go up. Lowie Lowenbero stated that he was opposed to Resolution No. 90-19. He did not see where a fifteen million dollar expenditure would help him as a taxpayer. He said he would rather the assembly take the fifteen million dollars and put it into a project to broaden the tax base in the community so the millage rate could be reduced. Marnie Hancock thought the management of the airport should be put on ballot. She said she would like to see competition and lower fares. COMMITTEE REPORTS Assemblyman Stevens reported the School District Budget Review Committee had been meeting weekly and their recommendation would made shortly. Assemblyman Austerman said he had attended a constituent teleconference with the legislators and reported that the Senate Hess Committee would be in Kodiak on March 9 for a public hearing on the education endowment fund. Also, he attended a P&Z work session and reported the commission was working on Title 16. Since he had been unable to attend meetings, Assemblyman Austerman suggested that Jack McFarland be appointed as assembly representative to the Gear Storage Task Force. Assemblymember Monroe reported that the Mental Health Advisory Board had began the budget process for FY91. Assemblyman White said the K.I.B. Hospital Advisory Board had met and agreed to the transfer of the two million dollars into the new hospital construction fund. Tom Hendel, Planning and Zoning Commission Representative, declared the final draft of Title 16 was finished and should be available to the assembly shortly. allOaIles, WAzF4Z[e: None Regular Assembly Meeting March 6, 1090 COMMITTEE REPORTS PUBLIC HEARING Volume XIII Page 61 MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby requested the assembly to approve a contract with Risk Management Specialists for $14,000 to complete the analysis of K.I.B. risk exposures for various insurance purposes. He added it had been six years since the last analysis had been done. MONROE, moved to approve Risk APPROVAL OF seconded by STEVENS, Management Specialists RISK MANAGEMENT in an amount NTE CONTRACT $14,000 and out of pocket. A discussion followed among the assemblymembers about the frequency of risk analysis. VOTE ON MOTION Ayes: Noes: MOTION CARRIED Merriman, Monroe, Stevens, White Austerman 4 Ayes, 1 No Assemblyman Stevens asked the mayor to look into the matter of self-insurance for the borough with this firm to which the mayor responded he would obtain a quote if the assembly so desired. Presiding Officer White asked if the assembly concurred and no opposition was voiced. Mayor Selby proclaimed the month of March 1990 as Women's History Month in the Kodiak Island Borough and urged that residents of Kodiak Island increase their knowledge and appreciation of the role women play in our lives. He reported the paper recycling program had netted 1,765 pounds of paper to date. He added that the Coast Guard Station was going to participate in the future and noted the program was growing. Mayor Selby reported on his trip to Washington, D.C. and said he focused on the inshore/offshore fishing issues and the allocation of bottom fish in Alaskan waters. Regular Assembly Meeting Volume XIII March 6, 1090 Page 62 He announced that Kit Duke, Deputy Commissioner for the Central Region, Department of Transportation would be in Kodiak on Wednesday and would meet with the assembly and city council for lunch and a tour of the roadways with potholes. The presiding officer called for a five minute recess. The presiding officer reconvened the assembly. OLD BUSINESS OLD BUSINESS A. Appointment of Vacant Assembly Seat. APPOINTMENT TO VACANT ASSEMBLY Presiding Officer White announced the candidates were SEAT Frances Cater, Tony Farmer and Bob Shuttlesworth adding that Tom Hendel had withdrawn his name from consideration. He said the procedure to be used was as follows: A secret ballot would be taken. Results of the vote would be posted following the meeting. The Clerk would distribute, collect, and tally the ballots. The Clerk would announce the results. If no candidate received the required four votes, the candidate with the fewest ballots would be dropped from the list of candidates until there were two remaining candidates and balloting would continue until one candidate was elected. The assembly cast their first ballot which was collected and tallied by the clerk. The results were Cater - 1, Shuttlesworth - 4. Presiding Officer White announced the new assemblymember would be Bob Shuttlesworth and he would be sworn in at the end of the meeting. B. RECONSIDERATION Resolution No. 90-19 Accepting RECONSIDERATION the Kodiak State Airport Terminal Building RESOLUTION Management and Operation Feasibility Study. NO. 90-19 VOTE ON MOTION TO RECONSIDER Ayes: Monroe, Stevens, Austerman, White Noes: Merriman MOTION CARRIED 4 Ayes, 1 No Regular Assembly Meeting Valume %III March 6, 1090 Page 63 Assemblyman Austerman stated he had listened to the public hearing portion of the February 15, 1990 Assembly tapes, and defended the assembly's action because he felt it was right for the assembly when doing long range planning to consider airport management. He thought the issue to be considered was whether government should become involved in private industry. He stated more government did not necessarily mean cheaper government and felt after reading this report that more government would mean more cost. He said he could not support the resolution in its present form and offered suggestions on amendments. STEVENS, seconded by MERRIMAN moved to amend by deleting the portion NOW, THEREFORE, BE IT RESOLVED in its entirety and substituting: NOW, THEREFORE, BE IT RESOLVED that the K.I.B. Assembly acknowledge receipt of the Kodiak State Airport Terminal Building Management and Operation Feasibility Study. Assemblyman Stevens felt there were important issues to be discussed and said a work session was scheduled for March 8, 1990 to discuss issues with Mark Air representatives. Referring to a letter to Mayor Selby from Alaska Airlines vice president, Cliff Argue, he read several pertinent points that Alaska Airlines gave as reasons for opposing the airport management plan. Assemblymember Monroe stressed that she wanted the assembly to have the vision to enhance the economic base of the community and thought a developed airport facility might attract more commercial development. Mayor Selby commented that the ultimate driving interest should be what is best for Kodiak Island's fifteen thousand residents, not just for today, but for the future of the Kodiak Island economy. He said being an island community, the transportation system, to a large extent, would dictate what happened with the economy. He felt Kodiak was a cash surplus route for Mark Air to subsidize other routes in other Regular Assembly Meeting Volume XIII March 6, 1090 Page 64 communities in which Mark Air competed. He stated that he was not convinced that the overall economic growth and health of this community should be left in the hands of one corporation whose primary function was to make a profit. He said the airport management study was complete and laid out some of perimeters about what might happen. In fact, he thought the study raised more questions than it answered. With the proposed amendment, he expressed concern that the signal was being sent that the assembly was not interested in knowing the answers to the questions. Assemblyman Merriman thought the proper thing to do would be to pass the amended motion to accept the report and the assembly could go to the meeting with Mark Air to discuss the areas of concern in good faith. Further discussion followed among the assemblymembers concerning the amendment. VOTE ON MOTION TO AMEND Ayes: Noes: Stevens, Austerman, Merriman, Monroe, White None MOTION CARRIED Unanimous VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: MOTION CARRIED NEW BUSINESS A. BID AWARDS None B. RESOLUTIONS None Regular Assembly Meeting March 6, 1090 Austerman, Merriman, Monroe, Stevens, White None 5 Ayes, 0 Noes zI*I4m-121340016 BID AWARDS RESOLUTIONS Volume XIII Page 65 C. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 90-11 Establishing Pasagshak Road Service Area. AUSTERMAN, moved to pass in first seconded by STEVENS reading Ordinance No. 90-11 and advance to public hearing on April 5, 1990. Assemblyman Austerman was concerned that the assembly was creating a service district without a vote of the people. The borough clerk clarified it has always been required for residents of an area to vote in an election and never property owners. She said there was a petition signed by 30 of 54 property owners. Tom Hendel stated there were 54 parcels of property, with 31 property owners due to multiple ownership. Out of those 31 property owners, he said 27 owners signed in favor of forming a service district, one was not able to be contacted, another one was in favor of the service district but did not want to do anything that cost money, and one was adamantly opposed with another one stating that she would do whatever the one that was opposed did. Assemblyman Merriman voiced concern about the borough's liability if a service district was created and a bridge built. A discussion followed among the assemblymembers about adopting the resolution in first reading and discussing it further at a work session. VOTE ON MOTION TO ADOPT IN FIRST READING Ayes: Noes: MOTION FAILED Stevens, Austerman, White Merriman, Monroe 3 Ayes, 2 Noes ORDINANCES FOR INTRODUCTION Ordinance No. 90-11 Regular Assembly Meeting Volume %III March 6, 1090 Page 66 2. Ordinance No. 90-12 Defining Assembly Ordinance Procedures for Reconsideration and No. 90-12 Rescission. AUSTERMAN, moved to pass in first seconded by MONROE reading Ordinance No. 90-12 and advance to public hearing on April 5, 1990. Assemblyman Merriman objected to paragraph 3 of Section 2 on the timing for the notice of intent to reconsider an ordinance and thought the notice should be given at the meeting where the ordinance was considered. Parliamentary procedures were discussed by assemblymembers. At Assemblymember Monroe's request, the borough clerk explained that the procedure was taken from the Fairbanks North Star Borough code and had been in use by the K.I.B. assembly. She said conflict occurred when standard procedures were taken from Mason's Rules of Order and the local governing body had adopted Robert's Rules of Order since the two sets of rules do not conform. The only change to the present procedure was the requirement that two assemblymembers make the motion instead of one assemblymember, she added. VOTE ON MOTION TO ADOPT IN FIRST READING Ayes: Monroe, Stevens, Austerman, Merriman, White Noes: None MOTION CARRIED Unanimous D. OTHER ITEMS OTHER ITEMS None Regular Assembly Meeting Volume %III March 6, 1090 Page 67 INFORMATIONAL MATERIALS (No Action Required) INFORMATIONAL MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. Bayview Drive Road Service District Advisory Board Meeting of February 6, 1990. B. REPORTS REPORTS 1. Status Report for January - Community Development OTHER C. OTHER 1. Kodiak High School Facilities Study and Educational Specifications Draft. CITIZENS' COMMENTS CITIZENS' COMMENTS Jim Fisk thanked the assembly for selecting Bob Shuttlesworth to fill the vacant seat on the assembly and thought he would be a good assemblymember. Nancy Frost inquired about the time of the work session when the assembly planned to meet with Mark Air officials. Tom Handel stated he would not have been disappointed if Ordinance No. 90-11 had been voted down after the second reading, but he was very disappointed when the assembly voted it down in the first reading. He thought the action prevented both sides of the issue from being aired. He urged the assembly to file a notice for reconsideration so public testimony could be heard. Scott Arndt, a property owner in the Pasagahak area, thought six property owners had voiced objection to the formation of a service district. Mr. Arndt thought "self help" was more appropriate in this situation. Scott Thompson inquired if the Charter Commission could only make decisions about consolidation of the two governments. Assemblyman Stevens responded to Mr. Thompson's inquiry by saying that Consolidation was the only form of government that would allow the villages to remain as second class cities. He requested the Regular Assembly Meeting Volume XIII March 6. 1090 Page 68 borough clerk to explain the various options for reorganizing municipal governments which she did. Ms. Vaughan explained that both the city of Kodiak and the Kodiak Island Borough governments as currently structured would crease to exist and the new government would be a Home Rule Municipality if the citizens voted for consolidation. Further discussion followed between Mr. Thompson and assemblymembers. Tom Hendel requested the assembly to reconsider Ordinance No. 90-11 and asked the borough clerk to give the assemblymembers copies of the Pasagshak Service Area petition which showed 27 property owners signing in favor of forming a service district. The borough clerk administered the Oath of Office to the newly elected assemblyman, Bob Shuttlesworth. ASSEMBLYMEN'S COMMENTS Assemblyman Merriman congratulated Bob Shuttlesworth on his appointment to the assembly. He felt the assembly did the proper thing in initiating the study on the airport. With the airport management study out of the way, he said the meeting with Mark Air representatives could be held in a manner of trust. Assemblyman Stevens urged the assembly to reconsider the Pasagshak Road Service Area issue as he thought it deserved a public hearing. Regarding Consoli- dation, he noted that fifteen members of the community had seen fit to place their names in nomination for the Charter Commission. Reading their names, he said they were all intelligent, qualified, capable people and applauded their willing to serve on this long-term commission. He thanked Cecil Ranney of the Kodiak Mirror for writing a concise, logical, common sense editorial concerning Consoli- dation and read the article for the audience. He said it would go against the will of the people who voted two to one in favor of exploring Consolidation if the matter was short stopped by various ploys. He responded to comments made against him by City Councilman Gilbert about circulating petitions for candidates. Regular Assembly Meeting March 6, 1090 ASSEMBLYMEN'S COMMENTS Volume XIII Page 69 Assemblymember Monroe welcome Bob Shuttlesworth to the assembly. She felt the assembly had not tackled the airport issue and planned to work on it in the future. Bob Shuttlesworth thanked the assembly for their vote of confidence. He said he wanted to work for the betterment of the community and felt it was his duty to serve on the assembly. He said his telephone was open to calls from the people he represented. Assemblyman Austerman welcomed Assemblyman Shuttlesworth aboard. He thanked the fifteen people who submitted petitions to be on the Charter Commission and said it was commendable that they wanted to devote that amount of time to it. He felt more information about the Charter Commission should be made available to the public. He also thanked those citizens who testified at the public hearing tonight. He expressed his concerns about bonding a fifteen million airport project when there were other projects in the community that needed funding. Presiding Officer White commented on the Kodiak High School Facilities Draft report and thought it had grown in scope since the assembly first discussed the remodel. He announced that weather permitting, the assembly would be traveling to Ouzinkie and Port Lions on Thursday, March 8 to meet with the respective city councils. He said the next assembly work session would be Thursday, March 8 at 7:30 p.m. and the next regular meeting would be Thursday, March 15 at 7:30 p.m. In conjunction with the Charter Commission candidates, he mentioned there were no names of village residents on the list and he expressed his wish that someone would apply from the villages. Regular Assembly Meeting Volume XIII March 6, 1090 Page 70 ADJOURNMENT ADJOURNMENT There being no further business to come before the assembly, the meeting adjourned at 10:17 p.m. esiding Officer ATTEST: Bbrou h Clerk Regular Assembly Meeting Volume XIII March 6. 1090 Page 71