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1993-11-18 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting November 18, 1993 A regular meeting of the Kodiak Island Borough Assembly was held November 18, 1993 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. The invocation was given by Reverend Earl Clark of the Community Baptist Church, followed by the Pledge of Allegiance. There were present: ROLL CALL Jack McFarland, Presiding Alan Austerman John Burt Gordon Gould Suzanne Hancock Mike Milligan absent: Mary Monroe comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC, Clerk Linda Freed, Community Development Department Karlton Short, Finance Director Judi Nielsen, Deputy Clerk Assemblymember Monroe was out -of -town on vacation and asked to be excused. GOULD, moved to excuse seconded by AUSTERMAN Assemblymember Monroe. VOTE ON MOTION TO EXCUSE Unanimous APPROVAL OF AGENDA GOULD, moved to approve seconded by AUSTERMAN the agenda as submitted. VOTE ON MOTION TO APPROVE Ayes: Austerman, Burt, Gould, Hancock, Milligan, McFarland Noes: None REGULAR MEETING APPROVAL OF AGENDA Regular Assembly Meeting Volume XVII November 18, 1993 Page 137 Absent: MOTION CARRIED APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS A. Student of the Month CITIZENS' COMMENTS Monroe Unanimous Mayor Jerome Selby presented the Student of the Month Award to Lane Schmelzenbach, a senior at Kodiak High School. Mayor Selby presented the Outstanding Contribution Award from the Alaska Municipal League to Patrick Carlson, Borough Assessor. Mr. Carlson thanked the Assembly and Mayor Selby for providing clear guidance. A. Agenda Items Not Scheduled For Public Hearing Dell Jackson, owner of Jackson's Mobile Home Park, spoke to Ordinance No. 93 -63 and thanked the Assembly and Planning and Zoning Commission for the process. He questioned the 3,000 square foot minimum lot size and 50 percent maximum lot coverage requirements. He felt a second look at the ordinance was in order. Presiding Officer McFarland advised that Mr. Jackson's question would be answered during discussion on the ordinance. B. Items Other Than Those Appearing on the Agenda Karlton Short, Finance Director, thanked Clerk Smith and staff for assistance in preparing the bonds ordinance and resolution. Pam Foreman, Kodiak Island Hospital representative, spoke for Edmon Myers, hospital administrator. She reported that the hospital's updated financial report evidenced a $150,000 gain during the past year. She said, however, that low collections were anticipated from November through January so revenue and expenses would be watched closely. She said negotiations with the orthopedic surgeon were progressing and anticipated an early January 1994 hire. She expected the hospital to be integrated into the Borough's APPROVAL OF MINUTES AWARDS AND PRESENTATIONS STUDENT OF THE MONTH CITIZENS' COMMENTS Regular Assembly Meeting Volume xvIl November 18, 1993 Page 138 A computer accounting system by July, 1994. In closing, she reported that the hospital and the Mental Health Center were working jointly with the state to establish three or four mental health treatment beds at the hospital. At the request of Assemblymember Gould, Ms. Foreman reported that the annual medicare /medicaid survey conducted by the state in September, 1993 revealed level A and level B deficiencies at the care center. She was pleased to state that the subsequent survey documented the deficiencies were corrected and the care center passed with a clean bill of health. Ms. Foreman explained to Assemblymember Burt that the hospital currently operated in the black. Assemblymember Milligan asked for a comparison of financial patterns to previous years. Ms. Foreman stated it was a strange year and reiterated the necessity to watch from November to January to hold on to a positive bottom line. Assemblymember Austerman understood that all orthopedic equipment was previously sold and asked for a replacement cost. He asked if the contract with the orthopedic surgeon was negotiated as an employee of the hospital or self - employed. Ms. Foreman understood the orthopedic surgeon was self - employed but guaranteed a minimum income over a two -year period. She said the surgeon reimbursed the hospital for billings and office space. She was unable to answer questions regarding equipment. Assemblymember Austerman clarified his request for the list of the equipment sold, even that donated, and the cost for replacement. Ms. Foreman hoped to have the requested information to the Assembly at the next work session as well as the guaranteed salary of the orthopedic surgeon if negotiations were complete. COMMITTEE REPORTS Assemblymember Gould, Hospital Advisory Board representative, appreciated Ms. Foreman's report. He added that items in Ms. Foreman's report were discussed at an advisory board meeting. Assemblymember Milligan attended the Alaska Municipal League (AML) Conference in Kenai. He said legislators were met by protestors picketing the Open Meetings Act. He reported that KIB Resolution No. 93 -35 was adopted at AML and KIB Resolution No. 93 -36 COMMITTEE REPORTS Regular Assembly Meeting Volume XVII November 18, 1993 Page 139 was not. Because of the involved process, he appreciated Mayor Selby's tenacity in submitting resolutions. He said it was good to meet with legislators, commissioners, and governor candidates. He felt the Kenai community was independent and economically diverse and was pleased the conference was held in a small community. Presiding Officer McFarland explained that elected officials and community leaders from throughout the state attended the conference. He said discussion was fruitful in that concerns of other communities were shared regarding building another ocean -going ferry, unfunded federal and state mandates, municipal assistance and revenue sharing, and AML platforms to be considered by legislators. He felt the high participation was due to the fact the convention was held in a different community and members were interested in visiting other areas in Alaska. PUBLIC HEARING PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. A. Ordinance No. 93 -65 Providing for the Issuance ORDINANCE of General Obligation Bonds of the Kodiak Island NO. 93 -65 Borough in the Aggregate Principal Amount of $19,200,000 to Pay the Costs of Hospital and School Capital Improvements in the Borough, Fixing Certain Details of Such Bonds, Providing for the Form and Manner of Their Sale, and Pledging the Full Faith and Credit of the Borough to the Payment Thereof. Presented for consideration was Ordinance No. 93 -65 which, if adopted, authorized the issuance and sale of not to exceed $19,200,000 aggregate principal of general obligation bonds of the Borough to be sold to provide funds to pay a portion of the capital costs of the School Projects and Hospital Project, to pay the costs of issuance of the bonds, including the bond insurance premium, if any, and to fix certain details of the bonds. AUSTERMAN, moved to adopt seconded by MILLIGAN Ordinance No. 93 -65. Mayor Selby explained the ordinance authorized the sale of $19,200,000 of bonds and the companion Resolution-No. 93 -38 approved the sale. He commended Karl Short, Finance Director, for preparing the bond package and negotiating the cost of the bond sale at Regular Assembly Meeting Volume XVII November 18, 1993 Page 140 $42,000 less than the proposed cost. In addition, he said the interest rate fell five basis points and decreased the payback by the community by $28,000. He distributed a chart prepared by Director Short that defined the trend in interest rates for the past ten years. Presiding Officer McFarland opened the public hearing. John Witteveen, Superintendent of Schools, urged the Assembly to adopt Ordinance No. 93 -65. He affirmed that 73 percent of the voters supported the bond issue because they recognized overcrowded classroom conditions and the need to expand and build a new elementary school. He appreciated the work of those involved in securing the project approved for 70 percent reimbursement from the state. Presiding Officer McFarland closed the public hearing and reconvened the regular meeting. At questions raised by Assemblymember Burt, Mayor Selby explained that all costs of the sale were incorporated into the $19,200,000. The $19,200,000 would be invested and interest gained would be placed in the bond pay -back fund. Mayor Selby responded to Assemblymember Burt's question about reimbursement for the hospital by the state by saying he was advised by Shelby Stastny, State Office of Management and Budget director, that the $4 million requested for fiscal year 1995 was in the governor's draft budget but it was not guaranteed to be there when presented to the legislature. He anticipated receiving the final decision in January or February 1994 when the budget was presented. Assemblymember Milligan asked for an outline of the bond selling procedure. Mayor Selby responded that after sale of the bonds the funds were invested in accordance with the Kodiak Island Borough investment policy until projects began. He said that Director Short had a good rapport with investment companies that resulted in average earnings around four percent. Mayor Selby said interest earnings were the first source to pay the debt service and if insufficient, funds were taken from the general fund and set the mil rate. There was general discussion regarding pay back of the bonds. It was explained the tax rate to pay back the bonds was the assessment rate the Assembly sets each year. The interest earnings would be the source Regular Assembly Meeting Volume XVII November 18, 1993 Page 141 for paying back the funds; if insufficient, the source was general funds. Mil rate increases were impacted by how much funds were transferred from the general fund. It was estimated that one mil for the hospital bond and one -third mil for the school bond was needed. Mayor Selby was confident there would not be a 1/3 mil rate increase but the actual increase was unknown. He would know in six months what the mil levy would be but could not predict the levy for the next twenty years. Assemblymember Austerman found remodeling the hospital more palatable than building a new hospital on a new site and noted the need for good medical services. Assemblymember Hancock felt it was necessary to continue to push for the 70 percent reimbursement. Assemblymember Milligan agreed with the comments of Assemblymember Austerman and felt the hospital renovation was a well thought -out phased approach that utilized an existing asset. Presiding Officer McFarland had no reservations and encouraged the Assembly to understand future hospital design funding needs. VOTE ON MOTION TO ADOPT Ayes: Noes: Absent: MOTION CARRIED B. Ordinance No. 93 -66 Amending Kodiak Island ORDINANCE Borough Code Chapter 17.13 C -- Conservation NO. 93 -66 Zoning District, Chapter 17.06 Definitions, and Chapter 17.67 Conditional Use Permits. Presented for consideration was Ordinance No. 93 -66 which, if adopted, amended Kodiak Island Borough Code to balance density of development, resource protection and economic development. AUSTERMAN, seconded by MILLIGAN Mayor Selby deferred to Austerman, Burt, Gould, Hancock, Milligan, Monroe, McFarland None Monroe Unanimous moved to adopt Ordinance No. 93 -66. Linda Freed, Community Regular Assembly Meeting Volume XVII November 18, 1993 Page 142 1 Development Department Director, for a staff report. Director Freed addressed both Ordinance No. 93 -66 and Ordinance No. 93 -67, reporting that staff was directed to work with the Planning and Zoning Commission to develop revisions to the conservation district and rural development district as a result of the number of rural development rezone requests in remote areas. She said this fourth draft presented by the Commission was developed after strong input by individuals and organizations in the community. She summarized changes to the conservation district that were generally less restrictive than the provisions in the current rural development district. She noted that the Borough attorney reviewed the regulations and recommended minor word changes. Presiding Officer McFarland opened the public hearing. Clarence Selig, Koniag, Inc. shareholder and board member, read a letter stating that the amended conservation zoning district was appropriate to Koniag's future land use requests. He said Koniag, Inc. felt a need to look at proposed amendments to rural development and conservation zoning districts to identify beneficial and detrimental effects on projected land use. He reported Koniag, Inc. had four rezone requests postponed and requested that, as a large land owner, fair and equal treatment of present and future land requests was needed. He noted that Presiding Officer McFarland stated that conditional use permits would be processed at the Planning and Zoning Commission level, thus removing the possibility of any political or special interest actions. He said Koniag, Inc. wished to work closely with the Borough in future applications for land use requests, site planning, and conditional use permits. Tony Drabek, Natives of Kodiak, Inc. representative, stated that Natives of Kodiak owned approximately 22,000 acres of conservation zoned property on Afognak Island that was managed by Koncor Forest Products Company. He announced that Natives of Kodiak, Inc. supported amendments to the conservation and rural development zoning districts and respectfully urged adoption of the ordinances. Ann Barker, setnet operator on the south end of Kodiak, spoke with Linda Freed and understood the revisions brought her non - conforming site into conformance with code. She felt that commercial setnet operations were acceptable development in remote areas and asked why the need for postponement. She asked whether the Jon Issacs and Associates study Regular Assembly Meeting Volume XVII November 18, 1993 Page 143 5 would change the intent of the language for setnet sites. In responding to Ms. Barker, Assemblymember Gould felt that setnet sites were operated illegally for years and hoped for language in the code that would not open the flood gates for other lodges and more intense use. He felt the Jon Isaacs and Associates study would have an impact on lodges and conditions for issuing conditional use permits. He felt that conditional use permits should be part of a zoning request that should be decided at the elected official level and not by the Planning and Zoning Commission. He announced it was his intention to request postponement until the completion of the study, but he did not see setnet sites changing. Ms. Barker felt it was critical that setnet sites not be limited to small city size lots. She said the need was for set backs that take marine nature into consideration. DeWitt Fields operated setnet sites on a ten -year lease with the state, with headquarters located on patented land. Bill Barker, setnet operator on the south end of Kodiak, was involved throughout the process and appreciated input to the Planning and Zoning Commission. He said the Alaska Native Claims Settlement Act set the 100' X 80' setnet lot size and it was virtually impossible to meet set backs and still run a viable business under the old regulations. He stated his lot and building location were in violation and changes to the code were sufficient to bring him into compliance. Tony Drabek was curious if the Jon Isaacs and Associates study would satisfy concerns regarding development of lodges and a quantitative measure of the capacity of each bay to which Presiding Officer McFarland replied no. Mr. Drabek contended the ordinance was crafted after intense work on the part of the Planning and Zoning Commission and saw no reason to postpone. Presiding officer McFarland closed the public hearing and reconvened the regular meeting. Assemblymember Milligan agreed there was considerable input and felt that each concern would be addressed on a case -by -case basis. He felt the study may not be a tool to solve all issues. Regular Assembly Meeting Volume XVII November 18, 1993 Page 144 Assemblymember Austerman agreed the study did not answer all questions but provided a background for decision making. He hoped for a methodology to determine cumulative affect on small islands and bays prior to actual damage taking place. Assemblymember Gould was concerned that future information indicating a need to rezone would cause the Borough financial burden. In response to Assemblymember Gould's questions, Director Freed read from the attorney's opinion stating the enactment of less restrictive zoning regulations which encourage development today could make it more difficult for the Assembly to enact more restrictive regulations in the future. In response to a request from Ms. Barker, Director Freed gave an outline of scheduled meetings for coastal management program revisions. She encouraged public participation because without input, studies were of little value. Assemblymember Gould continued by saying it was premature to adopt the ordinance at this time when the Borough was spending monies to gather information as a guide. GOULD, seconded by MILLIGAN A s moved to postpone Ordinance No. 93 -66 to the completion of Jon Isaacs & Associates study of the Kodiak Island Borough Coastal Management Plan and its incorporation into the Kodiak Island Borough Comprehensive Plan. Assemblymember Milligan appreciated discussion but felt the study was given an inordinate amount of weight. Assemblymember Gould felt that zoning districts were being liberalized and contended that granting conditional use permits gave the Planning and Zoning Commission too much power. He felt the Borough had the opportunity to be on the cutting edge of sensible planning instead of allowing the Island to be planned by greed. Assemblymember Hancock opposed postponement and contended that those who work, live, and recreate in an area determined growth. Regular Assembly Meeting Volume XVII November 18, 1993 Page 145 Assemblymember Austerman rebuffed Assemblymember Gould's remarks by saying the present rural development zoning was created but could not be enforced. He reiterated that enforcement should be planned before creating new regulations. Assemblymember Milligan felt the conditional use permit process limited abuse. Presiding Officer McFarland suggested adopting the ordinance because Jon Issacs needed some focus for the study from the Assembly. He added that the study would be tool to measure land use and conditional use permits. He pointed out that if an issue became controversial at the Planning and Zoning Commission level, it would come before the Assembly. VOTE ON MOTION TO POSTPONE Ayes: Gould Noes: Burt, Hancock, Milligan, Austerman, McFarland Absent: Monroe MOTION FAILED 1 Aye, 5 Noes VOTE ON MOTION TO ADOPT Ayes: Gould, Hancock, Milligan, Austermah, Burt, McFarland Noes: None Absent: Monroe MOTION CARRIED Unanimous After a ten minute recess at 9:03 p.m., Presiding Officer McFarland reconvened the regular meeting. C. Ordinance No. 93 -67 Amending Kodiak Island Borough Code Chapter 17.14 Rural Development District. Presented for consideration was Ordinance No. 93 -67 which, if adopted, amended Kodiak Island Borough Code to balance density of development, resource protection and economic development. Regular Assembly Meeting November 18, 1993 ORDINANCE NO. 93 -67 P44. .46 VOTE ON MOTION TO ADOPT Ayes: 9 GOULD, moved to adopt seconded by AUSTERMAN Ordinance No. 93 -67. Linda Freed, Community Development Department Director, explained that the revised rural development zoning district allowed commercial guiding and outfitting activities and related structures for no more than 15 clients. She said the revision lessened set back requirements consistent with conservation district, allowing development closer to marine waters. Presiding Officer McFarland opened the public hearing. Clarence Selig, Koniag Inc. shareholder and board member, referenced his previous position. Presiding Officer McFarland closed the public hearing and reconvened the regular meeting. Assemblymember Austerman favored adoption to allow time to research the legal aspect of abolishing rural development on properties previously rezoned. Assemblymember Gould noted his previous comments because he believed adoption of the ordinance was premature. Hancock, Milligan, Austerman, Burt, McFarland Noes: Gould Absent: Monroe MOTION CARRIED 5 Ayes, 1 No D. Ordinance No. 93 -68 Rezoning Land in the Port Lions Watershed From C -- Conservation To W -- Watershed. (Sections 11 and 12, of T27S, R23W, and S -1/4 Section 34 and S -1/4 Section 35 of T26S, R23W, Seward Meridian Total 1,600 Acres) Presented for consideration was Ordinance No. 93 -68 which, if adopted, rezoned land in the Port Lions watershed to protect and regulate the municipal water supply and prohibit all other land uses not compatible with maintenance of the watershed. ORDINANCE NO. 93 -68 Regular Assembly Meeting Volume XVII November 18, 1993 Page 147 0 AUSTERMAN, moved to adopt Ordinance No. 93 -68. seconded by MILLIGAN Mayor Selby explained that key sections of the watershed were not included in the original zoning. He said the City of Port Lions requested the rezone, which was approved by the Planning and Zoning Commission. Presiding Officer McFarland called for public testimony; hearing and seeing none, he reconvened the regular meeting. There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Hancock, Milligan, Austerman, Burt, Gould, McFarland Noes: None Absent: Monroe MOTION CARRIED Unanimous E. Ordinance No. 93 -10D Amending Ordinance No. 93 -10 Fiscal Year 1994 Budget to Accept a $350,000 Grant from the State of Alaska Department of Health and Social Services, Division of Administrative Services, for Building Renovation of the Mental Health Center Community Support Services Facility. Presented for consideration was Ordinance No. 93 -10D which, if adopted, accepted State of Alaska, Department of Health and Social Services, funds to provide Mental Health Center facilities renovation. AUSTERMAN, moved to adopt seconded by MILLIGAN Ordinance No. 93 -10D. Mayor Selby explained the grant was slated for renovation of the mental health dormitory. He said the renovation, originally projected at $900,000, was started in the 1980's and the grant allowed completion of some of the originally projected work. He anticipated a continued useful life of the building at 15 -20 years. Presiding Officer McFarland called for public testimony; hearing and seeing none, he reconvened the regular meeting. ORDINANCE NO. 93 -10D Regular Assembly Meeting Volume XVII November 18, 1993 Page 148 Assemblymember Austerman did not favor continued funding for renovation but felt use of state funds was more palatable. There was general discussion regarding the amount of funds expended per unit and Americans With Disabilities Act requirements. Assemblymember Milligan was uneasy about putting additional money into the building but felt the clients were part of the community and that was a healthy and positive aspect of the structure of the community. VOTE ON MOTION TO ADOPT Ayes: Milligan, Gould, Hancock, McFarland Noes: Austerman, Burt Absent: Monroe MOTION CARRIED 4 Ayes, 2 Noes MESSAGES PROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby reported on meetings held during the Alaska Municipal League conference and commended Assemblymembers who attended on a job well done. He said all agenda resolutions, changes to the policy statement and other important items were adopted. He said the new ocean -going ferry took extra effort and was pleased it was accomplished. He said that as funding tightened, it was important for Alaskans to unify and move forward together to maintain what has been won. He reported that the AML investment pool return was 30 million and surpassed all but one short term mutual fund in the country. He reported that the decision to designate ten percent of Exxon Valdez Settlement funds to Kodiak Parks was remanded by the Department of Natural Resources. He said there would be a candidate process and with reasonable criteria Kodiak could do better than ten percent. OLD BUSINESS OLD BUSINESS A. Ordinance No. 93 -63 Repealing and Re- enacting ORDINANCE Kodiak Island Borough Code Chapter 17.26 Mobile NO. 93 -63 Home Parks. Regular Assembly Meeting Volume XVII November 18, 1993 Page 149 Presented for consideration was Ordinance No. 93 -63 which, if adopted, amended Kodiak Island Borough Code to simplify regulations applicable to mobile home parks and ensure consistency with other sections of Title 17 in that mobile home parks were developed and maintained to provide a safe, sanitary, affordable housing option for Kodiak Island Borough residents. The motion to adopt Ordinance No. 93 -63 was before the Assembly. Linda Freed, Community Development Department Director, was asked to answer questions previously raised by Dell Jackson. Director Freed stated the 3,000 square foot minimum lot size and 50 percent maximum lot coverage were in the code since 1984. She said the Commission felt the requirements were appropriate to set standards and provide adequate housing. Director Freed responded to Assemblymember Burt's questions in that Rasmussen's Trailer Court was designed to meet the 1984 requirements and provided 20 percent storage and a playground area. She explained that if several mobile homes were removed from a park and when a home was destroyed by more than 50 percent of the replacement value, the owner was required to conform to new regulations. HANCOCK, seconded by AUSTERMAN moved to amend by deleting Section 17.26.110. Assemblymember Hancock agreed with comments of Mr. Perez at the November 4, 1993 Assembly meeting that six foot sight obscuring fencing around mobile home parks was unwarranted. Assemblymember Gould felt that the Commission's recommendation was well thought -out and agreed with the requirements. He noted that shrubbery and trees provided adequate fencing. Director Freed clarified that the Commission felt the current code was vague because it stated the Commission may require a wall or hedge. She said the changes gave specifics and a clear guideline. VOTE ON MOTION TO AMEND Ayes: Austerman, Burt, Hancock Regular Assembly Meeting Volume XVII November 18, 1993 Page 150 Absent: MOTION FAILED AUSTERMAN, seconded by HANCOCK Noes: Gould, Milligan, McFarland Monroe 3 Ayes, 3 Noes moved to amend Section 17.26.110 by deleting the existing wording in that section and replacing the wording with the old section which says that the Commission may require that a fence, wall or hedge be established and maintained between a mobile home park and any other lot if there is enough public comment to warrant such. Assemblymember Gould felt the intent of the Commission was clarification. He contended that screening deterred diminished property values. Assemblymember Austerman felt the screening requirement discriminated against a specific class of property owner. Assemblymember Hancock agreed with Assemblymember Austerman and felt that screening requirements should be determined on an individual basis. VOTE ON MOTION TO AMEND Ayes: Burt, Hancock, Milligan, Austerman Noes: Gould, McFarland Absent: Monroe MOTION CARRIED 4 Ayes, 2 Noes VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Regular Assembly Meeting November 18, 1993 Gould, Hancock, Milligan, Austerman, Burt, McFarland Noes: Absent: MOTION CARRIED NEW BUSINESS A. BID AWARDS 1. AUSTERMAN, seconded by MILLIGAN VOTE ON MOTION TO AWARD Ayes: Noes: Absent: MOTION CARRIED 1 2. Contract No. Installation MILLIGAN, seconded by AUSTERMAN None Monroe Unanimous Contract No. 93 -02 -A Peterson Elementary School Rehabilitation Architectural/ Engineering Services. moved to approve Contract No. 93 -02 -A with GDM, Inc. in an amount not to exceed $122,327.10. Mayor Selby stated this amendment to the original contract was for radon mitigation, asbestos abatement monitoring, removal of underground storage tank, lead and copper testing of water and drainage problems. He explained the funds were covered by the original $4.2 million appropriated. Gould, Hancock, Milligan, Austerman, Burt, McFarland None Monroe Unanimous 93 -54 Tsunami Siren , Karluk, Akhiok, Larsen Bay. moved to award Contract No. 93 -54 to Gallagher Electric of Palmer, Alaska in an amount not to exceed $7,060. Mayor Selby reported that two bids were received and Gallagher Electric was the low bidder. He said the Borough was fortunate in that costs were saved because Mr. Gallagher had traveled to Kodiak to hunt. NEW BUSINESS BID AWARDS CONTRACT NO. 93 -02 -A CONTRACT NO. 93 -54 Regular Assembly Meeting Volume XVII November 18, 1993 Page 152 There was no discussion by the Assembly. VOTE ON MOTION TO AWARD Ayes: Noes: None Absent: Monroe MOTION CARRIED Unanimous Hancock, Milligan, Austerman, Burt, Gould, McFarland 3. Contract No. 93 -60 Communication Equipment CONTRACT to Integrate the Kodiak Island Hospital & NO. 93 -60 Care Center with Kodiak Island Borough Computer Services. MILLIGAN, moved to award seconded by AUSTERMAN Contract No. 93 -60 to JMJ Corporation of Tukwilea, Washington in an amount not to exceed $17,529 and Frontier Micro Systems of Kodiak, Alaska in an amount not to exceed $12,023. Mayor Selby explained the intent was to integrate the hospital into the Borough accounting system by July 1, 1994. He said the bid was structured to allow selection at the best price. There was no discussion by the Assembly. VOTE ON MOTION TO AWARD Ayes: Milligan, Austerman, Burt, Gould, Hancock, McFarland Noes: None Absent: Monroe MOTION CARRIED Unanimous B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 93 -38 Relating to the RESOLUTION Issuance and Sale of $9,265,000 of General NO. 93 -38 Obligation Bonds, 1993 Series A, and Regular Assembly Meeting Volume XVII November 18, 1993 Page 153 5 $9,935,000 of General Obligation Bonds, 1994 Series A, Authorized by Ordinance No. 93 -65; Fixing the Date, Terms, Maturities and Interest Rates for Said Bonds; Providing for the use and Application of the Proceeds of Said Bonds; and Approving the Execution of a Contract of Purchase and Related Matters. Presented for consideration was Resolution No. 93 -38 which, if adopted, sets the maturity dates, interest rates, provides for the use of proceeds, approves execution of a purchase contract and other related matters of the bonds sale. MILLIGAN, moved to adopt seconded by AUSTERMAN Resolution No. 93 -38. Mayor Selby said the resolution authorized signing the sales agreement that consummated the prelithinary commitment of all the purchasers to buy the bonds at the rate set. He said the rates were set in the resolution and anticipated an average net yield of 5.45 percent over 20 years. He thanked Finance Director Karl Short and Clerk Donna Smith. There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Austerman, Burt, Gould, Hancock, Milligan, McFarland Noes: None Absent: Monroe MOTION CARRIED Unanimous C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS MILLIGAN, • seconded by GOULD moved to approve Contract No. 93 -61 Memorandum of Agreement ORDINANCES FOR INTRODUCTION OTHER ITEMS 1. Contract No. 93 -61 Counseling and Related CONTRACT Services for the Kodiak Island Borough NO. 93 -61 School District Special Education Program. (KIBSD Memorandum of Agreement No. 934 -39) Regular Assembly Meeting Volume XVII November 18, 1993 Page 154 VOTE ON MOTION TO APPROVE Ayes: MILLIGAN, seconded by BURT VOTE ON MOTION TO APPROVE Ayes: Noes: Absent: 4 None Monroe 5, Noes: None Absent: Monroe MOTION CARRIED Unanimous No. 934 -39 between the Kodiak Island Borough Mental Health Center and the Kodiak Island Borough School District in an amount not to exceed $11,750. Mayor Selby explained this was a continuation of ongoing services. Austerman, Burt, Gould, Hancock, Milligan, McFarland 2. Contract No. 93 -62 Providing Consulting CONTRACT Services to the Salmon Industry Advisory NO. 93 -62 Board. moved to approve Contract No. 93 -62 with Denby Lloyd in an amount not to exceed $8,000. Mayor Selby explained the consultation contract was requested by the salmon fishing industry and their recommended choice was Denby Lloyd. He said the organizational meeting of the board was set to discuss the Cook Inlet intercept problem. He said the contract required a monthly written report. It was understood that Mr. Lloyd would work with advice from the board and a future request for a second consultant with specific expertise was potentially necessary. Gould, Hancock, Milligan, Austerman, Burt, McFarland Regular Assembly Meeting Volume XVII November 18, 1993 Page 155 MOTION CARRIED Unanimous 3. Contract No. 93 -63 Authorizing the Advance CONTRACT of $50,000 of Matching Funds for the Alaska NO. 93 -63 Department of Commerce and Economic Development Matching Grant Program Grant to Develop Value -Added Products from Fishing Offal. AUSTERMAN, moved to approve seconded by MILLIGAN Contract No. 93 -63 with the Kodiak Chamber of Commerce in an amount not to exceed $50,000. Mayor Selby said the request was from the Kodiak Chamber of Commerce. He said assistance from the National Marine Fisheries Service and an in -kind donation from the equipment manufacturer allowed a test case to determine the ability to create high grade fish meal. He said the Borough would be reimbursed at the time the fish meal was sold. Assemblymember Austerman felt the contract was an economic development tool benefiting the community. Assemblymember Burt did not feel it was an appropriate use of Borough money. Dave Woodruff called to express concern that the local processing industry committed $10.5 million to build a new waste reduction plant in Kodiak with the intention of treat all fish waste coming out of Kodiak fish processing plants. He reported that federal mandates required the plant to be operating by 1995. Mayor Selby explained this was a pilot project intended to produce an enhanced product from the new plant. He said it was an opportunity to use high tech equipment to produce a high quality meal product. Assemblymember Austerman understood the process removed more bone and produced a valuable product. When Assemblymember Gould stated he understood value was added to the final product, Presiding Officer McFarland noted that Wayne Stevens, Kodiak Chamber of Commerce Director, nodded in the affirmative. When Mayor Selby left the meeting at 10:27 p.m.; Acting Mayor Linda Freed succeeded him. Regular Assembly Meeting November 18, 1993 vc VOTE ON MOTION TO APPROVE Ayes: VOTE ON MOTION TO APPROVE Ayes: Hancock, Milligan, Austerman, Gould, McFarland Noes: Burt Absent: Monroe MOTION CARRIED Unanimous 4. Contract No. 93 -64 Phase II Borough CONTRACT Building Underground Storage Tank (UST) NO. 93 -64 Removal Project. GOULD, moved to award seconded by AUSTERMAN Contract No. 93 -64 with Island Environmental Services of Kodiak, Alaska in an amount not to exceed $39,832. Acting Mayor Freed explained the emergency contract was caused by the discovery of unexpected oil in the Borough parking lot. She said immediate work was necessary to rectify the situation. Ms. Freed noted that some of the work required by the Department of Environment Conservation could only be done by a certified contractor based in Anchorage. Acting Mayor Freed reported that a long -term correction plan, including drilling downhill from the intake pipe to determine the extent of the soil contamination, was a separate contract forthcoming to the Assembly. Noes: None Absent: Monroe MOTION CARRIED Unanimous Milligan, Austerman, Burt, Gould, Hancock, McFarland Regular Assembly Meeting Volume XVII November 18, 1993 Page 157 5. Hospital Advisory Board Member Resignation. GOULD, seconded by AUSTERMAN Presiding Officer McFarland Ms. Osborne and appreciated commissions. VOTE ON MOTION TO ACCEPT Ayes: Noes: Absent: MOTION CARRIED INFORMATIONAL MATERIALS (No action required) A. B. 1. MINUTES OF OTHER MEETINGS C. OTHER 1. Kodiak Island Hospital Advisory Board Meeting of September 8, 1993. 2. Monashka Bay Road Service District Minutes of October 27, 1993. REPORTS 1. Engineering /Facilities Department November 1993 Project Update. 2. Resource Management Office November 1993 Status Report CITIZENS COMMENT None. moved to accept the resignation of Jane Osborne from the Hospital Advisory Board. extended thanks to all members of boards and Austerman, Burt, Gould, Hancock, Milligan, McFarland None Monroe Unanimous Kodiak Island Hospital & Care Center Advisory Board Resolution No. 93 -03. HOSPITAL ADVISORY Bt,.,xW RESIGNATION INFORMATIONAL MATERIALF MINUTES OF uPHEI MEETINGS REPORTS OTHER CITIZEN COMMENTS Regular Assembly Meeting Volume XVII November 18, 1993 ?a4e 158 ASSEMBLYMEMBER COMMENTS Assemblymember Hancock appreciated the care and concern of staff and the Planning and Zoning Commission. Assemblymember Gould extended special thanks to Betty Fitzjearl for three years as an Assemblymember and said she was missed. He noted his intent to ask for reconsideration of Ordinance No. 93 -66. Assemblymember Milligan appreciated the efforts of the salmon industry and felt the ability to reach a consensus complimented their involvement. Assemblymember Austerman noted prior discussion of a state grant for a cumulative aspect type of study. Acting Mayor Freed explained time was spent modifying the original grant in order to insert the Kodiak Island Borough's interest in the grant. She worked with DNR and Bristol Bay Coastal Resource Area to modify the grant application before it goes to the federal government on December 1, 1993. If approved, funding would be available in 1995. When Assemblymember Austerman questioned the legality of rural development zoning and the possibility of abolishing present rural development zonings, Presiding Officer McFarland suggested the discussion be held during a work session. Assemblymember Austerman noted that the dollar value of oil was down to $13 per barrel. He considered time spent in Juneau to protect what legislative gains was needed. He welcomed the Lions Club convention to Kodiak and acknowledged presence of past assessor Wayne Haerer. Presiding Officer McFarland announced that Clerk Smith would be on vacation November 22 -24, 1993. Presiding Officer McFarland congratulated Pat Carlson, saying it was a proud honor for the Borough to have an assessor who was nominated for the award. He appreciated the Borough's quality staff. Presiding Officer McFarland announced the Kodiak Island Borough Assembly will meet in a work session on Tuesday, November 30, 1993, at 7:30 p.m. in the borough conference room, and a regular meeting on Thursday, December 2, 1993, at 7:30 p.m. in the assembly chambers. ASSEMBLYMEMBER COMMENTS Regular Assembly Meeting Volume XVII November 18, 1993 Page 159 MILLIGAN, seconded by GOULD VOTE ON MOTION TO ADJOURN ATTEST: /'hint 7 , Borough Clerk Corrected & Approved: 12/16/93 moved to adjourn. Unanimous voice vote There being no further business to come befo a the Assembly, the meeting adjou- ed a 10:20 p.mi g Offic ar ADJOURNMENT Regular Assembly Meeting Volume XVII November 18, 1993 Page 160