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1991-04-18 Regular MeetingA regular meeting of the Kodiak Island Borough Assembly was held April 18, 1991, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Hay Road. The meeting was called to order at 7:32 p.m. The invocation was given by Paster Don McCullough of the Church of the Nazarene followed by the Pledge of Allegiance. There were present: ROLL CALL Jack McFarland, Presiding Betty Fitzjearl Gordon Gould Suzanne Hancock Mike Milligan Mary Monroe Gary Stevens comprising a quorum of the assembly; and Linda Freed, Acting Mayor Gaye J. Vaughan, Borough Clerk APPROVAL OF AGENDA APPROVAL OF AGENDA STEVENS, moved to approve agenda seconded by GOULD as submitted. MOTION CARRIED APPROVAL OF MINUTES None. AWARDS AND PRESENTATION A. Student of the Month STUDENT OF THE MONTH Acting Mayor Linda Freed presented the Student of the Month award to Tanya Marie Peterson, Senior at Akhiok School. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing None. B. Items Other Than Those Appearing on the Agenda None. Regular Assembly Meeting April 18, 1991 KODIAK ISLAND BOROUGH Regular Assembly Meeting April 18, 1991 Unanimous Voice Vote KIBS104329 REGULAR MEETING APPROVAL OF MINUTES AWARDS AND PRESENTATIONS CITIZENS' COMMENTS Volume XIV Page 85 COMMITTEE REPORTS COMMITTEE REPORTS Wayne Coleman, Planning & Zoning Commission representative, said others would be speaking on specific actions and offered to answer questions. Gordon Gould, Hospital Advisory Board representative, introduced Ed Meyers, Kodiak Island Hospital Administrator, who expressed interest in attending future Assembly meetings and looked forward to a productive relationship with the Borough. Mary Monroe, Mental Health Advisory Board representative, said the Board had reviewed the Department's budget and would soon be prepared to discuss it with the Assembly. Mike Milligan, attended the Alaska Municipal League in Juneau. He encouraged the public to offer input to the legislature on important issues. Suzanne Hancock, Alaska Municipal League Land Use Committee representative, explained they dealt with the mental health trust lands, the hospital bill, raw fish tax, and some issues that may help the school district. PUBLIC HEARI PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies had been made available to the public. A. Ordinance No. 91 -02 Amending KIB 2.21 Regarding ORDINANCE the the Deputy Borough Clerk. Presented for consideration was Ordinance No. 91 -02 which would amend Kodiak Island Borough Code 2.21 regarding the Deputy Clerk position. This ordinance was presented in first reading on April 4, 1991. moved to adopt Ordinance No. 90 -02. FITZJEARL, seconded by Monroe Clerk Vaughan gave a report by explaining the introduced the request of _ ordinance was �..��.+..�� -�,- Assemblymembers Fitzjearl and Monroe. The ordinance would clarify the deputy clerk's position as a member of the legislative staff and would give clear authority for the deputy to assume the powers and duties of the clerk in her absence and take direction from the Assembly. The presiding officer called for public testimony, Regular Assembly Meeting April 18, 1991 KIBS10 Volume X:V Page 86 there being none, the Assembly reconvened. Assemblymember Stevens felt it was logical to organize the Clerk's Office this way and encouraged adoption of the ordinance. VOTE ON MOTION TO ADOPT Ayes: Noes: None Fitzjearl, Gould, Hancock, Milligan, Monroe, Stevens, McFarland MOTION CARRIED Unanimous voice vote B. Resolution No. 91 -13 Approving the FY 92 School RESOLUTION District Budget and Determining the Total Amount NO. 91 -13 of Funds to be Made Available from Local Sources. Presented for consideration, Resolution No. 91 -13 adopts the Kodiak Island School District's FY 92 budget in the amount of $16,720,000 with a total local appropriation of $3,697,500. STEVENS, moved to adopt seconded by GOULD Resolution No. 91 -13. John Witteveen, KIBSD Superintendent, was asked to provide the staff report. John Witteveen pointed out there was an increase in the local contribution because of the decline in the State -level contribution. He asked for the Assembly's support in order to maintain the same level of programs. He added there were no increases in staff positions and no reductions in staff positions; the primary increase was in fuel, health insurance, teacher and employee retirement systems. He explained the local contributions required by State law. He was available to answer further questions. The Presiding Officer closed the regular meeting and opened the public hearing. Cheryl McNeil, President of Kodiak Island Borough School Board, encouraged support for the school district's local appropriation. Norm Wooten, member of the School Board, expressed pride in the fiscal responsibility of the school Regular Assembly Meeting April 18. 1991 KIBS1043 district and the quality of education provided to the students. He asked the Assembly to favorably consider the request for local contribution. Bill Oliver urged support of the local appropriation request. The Presiding Officer closed the public hearing and reconvened the regular meeting. Assemblymember Hancock had reservations in appropriating more dollars this year as it meant a two mill increase in the property tax. Assemblymember Gould thought there had to be sacrifices to maintain the educational system at its present level and was willing for an increase in the mill rate to six mills. GOULD, seconded by STEVENS Tin Regular Assembly Meeting April 18. 1991 moved to amend by adding the words "a maximum local appropriation of six mills real property tax or S3,000,000, whichever is greater for new local appropriation" and deleting the building maintenance, insurance and other direct costs. Assemblymember Gould explained his amendment would eliminate the building maintenance, insurance and other direct costs from the resolution to open discussion on different levels of coverage for these costs. Assemblymembers discussed the proposed amendment with staff. VOTE ON MOTION TO AMEND Ayes: Gould Hancock. Milligan, Monroe, Stevens, Fitzjearl, McFarland MOTION FAILED 1 Ayes, 6 Noes KIBS104332 Volume XIV Page 88 FITZJEARL seconded by GOULD moved to amend by setting the Borough contribution to the Kodiak Island Borough School District according to AS 14.17.025(A)(1) which reads "local contributions to a city or borough school district shall include at least the lesser of (1) the equivalent of a four mill tax levy on the full and true value of the taxable real and personal property in the district as of January 1 of the second preceding physical year as determined by the Department of Community and Regional Affairs under AS 14.17.140 and AS 29.24.110 ". Assemblymember Fitzjearl explained that if this amendment passed, the legal requirement of accepting the school district budget was met. Assemblymembers discussed the amendment. VOTE ON MOTION TO AMEND Ayes: Hancock, Fitzjearl Noes: Milligan, Monroe, Stevens, Gould, McFarland MOTION FAILED 2 Ayes, 5 Noes The Assemblymembers continued discussion on the main motion to adopt the resolution. MONROE, seconded by FITZJEARL Assemblymembers discussed the ramifications of reducing the budget by this amendment. Regular Assembly Meeting April 18. 1991 moved to amend the S3 fignra to 82,800,000 for a total of S3,497,500. KIBS1043 Volume /CV Page di Presiding Officer McFarland passed the gavel to Deputy Presiding Officer Stevens in order to speak to the issue. Assemblymember McFarland felt education should be a high priority and fully funded. He pointed out there had been no tax increases in three years at the cost of reductions to fund balances. He urged the Assembly to support the budget as presented. VOTE ON MOTION TO AMEND Ayes: Noes: MOTION FAILED GOULD, seconded by MILLIGAN Monroe, Fitzjearl, Hancock Milligan, Stevens Gould, McFarland 3 Ayes, 4 Noes moved to postpone Resolution No. 91 -13 to April 30th and the Superintendent to provide alternatives and consequences. Assemblymember Gould said his motion for postponement would allow time to discuss the probability of approval of a three -year tax plan. Assemblymembers discussed the consequences of postponement. VOTE ON MOTION TO POSTPONE Ayes: Noes: Monroe, Gould McFarland, Fitzjearl, Hancock, Milligan, Stevens MOTION FAILED 2 Ayes, 5 Noes Assemblymembers discussed with Mr. Witteveen a possible amendment to the resolution to remove the maintenance and insurance items in order to treat the appropiation of funding Regular Assembly Meeting April 18. 1991 f aA „rata nn as one budget. KIBS104334 Vol.'e X_'V Page 90 GOULD, seconded by FITZJEARL Assemblymember Gould explained his motion would allow for more discussion on the variable costs. Assemblymember McFarland wondered if building maintenance and insurance were costs the Assembly had no control over and whether they could be argued in another scenario. Assemblymembers discussed the amendment. The Deputy Presiding Officer called a ten minute recess. VOTE ON MOTION TO AMEND Ayes: Noes: MOTION FAILS Assemblymembers motion. McFARLAND, seconded by MILLIGAN VOTE ON MOTION TO AMEND Regular Assembly Meeting April 18, 1991 moved to amend by deleting $200,000 building maintenance and decreasing $497,500 to 5371,000 to change total local appropriation to $3,371,000. Gould, Stevens, McFarland Fitzjearl, Hancock, Milligan, Monroe 3 Ayes, 4 Noes continued discussion on the main moved to amend by deleting the building maintenance, insurance and other direct costs paid by the Borough for a total local appropriation to equal $3,000,000. Assemblymember McFarland hoped the deleted items could be reflected in a later budget, and the decision needed wvuid be only on the funding of education. Mr. Witteveen concurred with Assemblymembers that the amendment would not have an immediate impact on the State funding. Ayes: Gould, Milligan, McFarland, Stevens KIBS104335 Volume XIV Page 91 Noes: MOTION CARRIED Assemblymembers No. 91 -13 which appropriation. MONROE, seconded by FITZJEARL Assemblymember Monroe felt this year was the year that all areas of the budget needed trimming. Deputy Presiding Officer Stevens interrupted to announce the appellants in the Board of Adjustment appeals had left due to the lateness of the meeting. The Assembly unanimously agreed to postponing the Board of Adjustment hearings to May 2, 1991. Assemblymembers continued discussing the amendment. VOTE ON MOTION TO AMEND Ayes: Monroe, Fitzjearl, Hancock Noes: Milligan, McFarland, Gould, Stevens MOTION FAILED 3 Ayes, 4 Noes VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: MOTION CARRIED 6 Ayes, 1 No Deputy Presiding Officer Stevens returned the gavel to Presiding Officer McFarland. BOARD OF ADJUSTMENT An appeal by Richard R. Madson of the Planning and Zoning Commission's decision ordering the discontinuation of an unlawful use of land (outdoor storage constituting a junkyard) in an RR- 1- -Rural Residential One Zoning District and removal of all Regular Assembly Meeting April 18. 1991 Hancock, Monroe, Fitzjearl 4 Ayes, 3 Noes discussed amended Resolution showed a 33,000,000 local moved to amend the local appropriation to 32,900,000. Milligan, Monroe, McFarland, Fitzjearl, Gould, Stevens Hancock KIBS104336 ;age 9. junk vehicles (un- registered, inoperable vehicles, trailers, parts and scrap salvage) within (60) days on Lot 58, Block 3, Bells Flats Alaska Subdivision; 782 Sargent Creek Road and denial of a request for an exception from Section 17.17.020 (Permitted Uses) of the Borough Code to permit junk vehicles (un- registered, inoperable vehicles, trailers, parts and scrap salvage) on a lot in the RR1 -Rural residential One Zoning District. (Applicant: Richard R. Madson) An appeal by James A. Crane and Logan Porter -Crane of the Planning and Zoning Commission's denial of a request for an exception from Section 17.17.020 (Permitted Uses) of the Borough Code to permit the continued use of a second, non - permitted single - family dwelling unit on a lot in the RR- 1- -Rural Residential Zoning District located on Lot 3, Block 3, Island Vista Subdivision, 2105 Harbor Way. (Applicant: James A. Crane and Logan Porter- Crane) CLERK'S NOTE: As noted on page 92, the above mentioned appeals were postponed until May 2, 1991. MESSAGES FROM THE BOROUGH MAYOR Acting Mayor Freed had no messages. OLD BUSINESS None. NEW BUSINESS A. BID AWARDS None. B. RESOLUTIONS 1. Resolution No. 91 -14 Authorizing the Execution of Amendments to the Reimbursement Agreement and Letter of Credit Related to the Borough's General Obligation Variable Rate Demand Bonds, 1986 Series A; and Providing for Related Matters. Resolution No. 91 -14, if adopted, would amend the letter of credit on the 1986 bond issue with Barclays Bank by extending the letter of confirmation from its current June 11, 1991, expiration date. Regular Assembly Meeting April 18, 1991 MESSAGES FROM MAYOR OLD BUSINESS NEW BUSINESS BID AWARDS RESOLUTIONS RESOLUTION NO. 91 -14 KIBS 1043 Volume XIV Page 93 At the Presiding Officer's request, Finance Director Karleton Short introduced Dan Caplan who worked on the original bond issue. Mr. Caplan explained the 1986 bonds were at a five -year guaranteed variable rate by Barclays Bank. He said the guarantee was expiring and Barclays Bank offered to renew the guarantee for another year. MONROE, moved to adopt seconded by FITZJEARL Resolution No. 91 -14. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Unanimous 2. Resolution No. 91 -15 Supporting an increase RESOLUTION in the Level of Funding Proposed by the NO. 91 -15 Governor for Kodiak College and the Fishery Industrial Technology Center. Presented for consideration was Resolution No. 91 -15, which supported an increase in the level of funding proposed by the Governor so that important educational programs would not be diminished. GOULD, moved to adopt seconded by MILLIGAN Resolution No. 91 -15. VOTE ON MOTION TO ADOPT Monroe, Stevens, Milligan, Fitzjearl, Gould, Hancock, McFarland None MOTION CARRIED Unanimous voice vote 3. Resolution No. 91 -16 Opposing Oil and Gas Leasing in the Cook Inlet Planning Area. Presented for which opposed Planning Area Acting Mayor Freed indicated the Borough has consistently been opposed to off -shore leasing in this area for twelve years given the high relative value of the resources for fisheries and habitat and the projected low value for recoverable oil and gas reserves. Regular Assembly Meeting April 18. 1991 consideration was Resolution No. 91 -16, oil and gas leasing in the Cook Inlet by the Mineral Management Service, ye.te. -4 nr KIBS104338 RESOLUTION NO. 91 -16 Volume XIV Page 94 Assemblymember Milligan thanked Ms. Freed for the hard work which was important to the local community. GOULD, moved to adopt seconded by MILLIGAN Resolution No. 91 -16. VOTE ON MOTION TO ADOPT MOTION CARRIED C. ORDINANCES FOR INTRODUCTION Unanimous voice vote 1. Ordinance No. 91 -03 Adopting a Severance Tax Upon Natural Resource Extraction. Presented for fist reading, Ordinance 91 -03 would levy a tax on the business of extracting minerals, fish, rock, sand, gravel, and timber. GOULD, moved to advance seconded by STEVENS Ordinance 91 -03 to public hearing on May 2, 1991. Assemblymember Fitzjearl felt it was premature to pass tax ordinances before the Assembly had opportunity to review the budget as a group and determine the amount of revenue required; therefore, postpone the ordinance. Linda Freed, Acting Mayor, urged the Assembly to introduce the ordinance even though it would not be adopted until further budget review. The public would see it was being considered as an option and could provide input at public hearings. Clerk Vaughan explained that the ordinance could be rescheduled, postponed, or tabled to a later date at the second reading. In response to Assemblymember Fitzjearl's question on figures within the ordinance, Acting Mayor Freed explained that figures were not needed since the mill rate adopted in the budget process would be applied through the ordinance. Pat Carlson, Borough Assessor, explained that the tax on sand and gravel was more complicated than the others, but by working with the industries, problems could be alleviated when setting up the tax. The fish tax collected at the processor and forms for tax on timber would be prepared for both parties. Regular Assembly Meeting April 18. 1991 ORDINANCES FOR INTRODUCTION ORDINANCE NO. 91 -03 1 IBS 104339 Volume XIV Page 95 Assemblymember Fitzjearl asked why the mill was chosen for the fish tax rather than the percentage tax. Mr. Carlson explained that when drafting the ordinance, it was his feeling that it was preferred to treat it as a mill across the board. It was also pointed out that in order to collect a percentage tax the Borough would have to have sales tax power, which it does not. Mr. Carlson stressed that passing the ordinance in its first reading would give him the opportunity to present it to the industry and work with them. VOTE ON MOTION Ayes: Monroe, Stevens, Gould, Hancock, Milligan, McFarland Noes: Fitzjearl MOTION CARRIED 6 Ayes, 1 No OTHER ITEMS D. OTHER ITEMS 1. Preliminary Design Documents for the Kodiak KODIAK HIGH High School Alteration Project, Phase I. SCHOOL FITZJEARL, moved to adopt the seconded by MILLIGAN preliminary design documents for the Kodiak High School Alteration Project, Phase I. Acting Mayor Freed pointed out that additional minutes from the Architectural Review Board had been provided. She added that the School Board had approved the design and requested the Assembly do the same. She explained the alterations would include health and safety improvements in the lab area, roof repair, and reorganization of space. VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous Regular Assembly Meeting April 18. 1991 KIBS104340 Stevens, Fitzjearl, Gould, Hancock, Milligan, Monroe, McFarland Volume XIV Page 96 STEVENS, moved to approve final seconded by MONROE construction documents for the Old Harbor School Repair Project. Acting Mayor Freed defined this project as a repair of damage -- primarily siding and structural - -and additional work to include an outdoor basketball court, flagpole, and fencing. 2. Final Construction Documents for the Old OLD HARBOR Harbor School Structural Repair Project. SCHOOL VOTE ON MOTION Ayes: Noes: Fitzjearl, Gould, Hancock, Milligan, Monroe, Stevens, McFarland None MOTION CARRIED Unanimous INFORMATIONAL MATERIALS (No action required) A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. Architectural Review Board meetings of December 18, January 15, January 29, 1990, and March 1, 1991. 2. Kodiak Island Borough School District meeting of March 25, 1991. 3. Kodiak Island Hospital Advisory Board meeting of March 13, 1991. 4. Service District No. 1 Advisory Board meetings of February 5 and March 12, 1991. B. REPORTS REPORTS 1. Kodiak Island Borough Financial Report for the Month of March 1991. C. OTHER None. CITIZENS' COMMENTS Scott Thompson believed that the school budget passed was appropriate. Wayne Coleman appreciated the school budget preparation. Regular Assembly Meeting April 18. 1991 KIBS104341 INFORMATIONAL MATERIALS OTHER CITIZENS' COMMENTS raj! Scott Arndt urged postponement of Ordinance No. 91 -03 at the public hearing so that a second public hearing could be scheduled. ASSEMBLYMEN'S COMMENTS ASSEMBLYMEN'S COMMENTS Assemblymember Fitzjearl asked that service area budgets be available in the Borough Clerk's Office per KIBC 4.20.040. Assemblymember Stevens announced that two public hearings on Ordinance No. 91 -03 were planned for May. Assemblymember Monroe spoke on promoting the proposed tax plan by the Borough's public relation firm. Assemblymember Milligan felt the severance tax was a start toward long -range planning. Presiding Officer McFarland wished Assemblymembers Fitzjearl, Monroe, and Milligan happy birthday. He appreciated the difficult decision Assemblymembers made on the school district budget. The Presiding Officer announced the Assembly would meet in work session on Thursday, April 25 at 7:30 p.m. in the Conference Room and the next regular Assembly meeting on Thursday, May 2 at 7:30 p.m. in the Assembly Chambers. Clerk Vaughan encouraged the public to write to Senators for municipal programs funding. There being no further business to come before the assembly, the meeting adjourned at 11:08 p.m. ATTEST: Boroug Clerk Regular Assembly Meting April 18. 1991 KIBS104342 Volume XIV Page 98