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1997-04-17 Regular MeetingKODIAX ISLAND BOROUGH Regular Assembly Meeting April 17, 1997 A regular meeting of the Kodiak Island Borough Assembly was held April 17, 1997 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 Envoy Craig Fanning of the Salvation Army, followed by the Pledge of Allegiance. There were present: Robin Heinrichs, Presiding Tom Abell Bob Johnson Mike Milligan Gary Stevens Wayne Stevens absent: Tuck Bonney comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC /AAE, Clerk Judi Nielsen, Deputy Clerk Assemblymember in the family. G. STEVENS, seconded by W. VOTE ON MOTION MOTION CARRIED APPROVAL OF AGENDA JOHNSON, seconded by MILLIGAN Regular Assembly Meeting April 17, 1997 Bonney was out of town due to a death moved to excuse STEVENS Assemblymember Bonney. TO EXCUSE Unanimous voice vote moved to approve the agenda. REGULAR MEETING ROLL CALL APPROVAL OF AGENDA Volume XXII Page 175 JOHNSON seconded by W. STEVENS VOTE ON MOTION TO AMEND MOTION CARRIED VOTE ON MOTION TO APPROVE AS AMENDED MOTION CARRIED APPROVAL OF MINUTES A. K.I.B. Assembly Meeting W. STEVENS, seconded by G. STEVENS Regular Assembly Meeting April 17, 1997 moved to amend the agenda to add as item 12.B.2. Resolution No. 96 -10C Amending Resolution No. 96 -10 Establishing Fees of the Kodiak Island Borough to Waiver Fees for Disposal of Junk Vehicles During Spring Clean -up. Unanimous voice vote Unanimous voice vote of March 20, 1997. moved to approve the minutes of March 20, 1997. VOTE ON MOTION TO APPROVE MOTION CARRIED Unanimous AWARDS AND PRESENTATIONS A. Student of the Month Mayor Selby presented the Student of the Month Award to Natasha Panamarioff, a senior at Ouzinkie School. B. Proclamations Mayor Selby proclaimed April 24, 1997 National Take Our Daughters to Work Day, encouraging all citizens to support this event by mentoring our daughters and showing them the impressive contributions that women leaders in Kodiak were making in our work places and community every day. Cheryl Bolger, Take Our Daughters to Work Day Borough coordinator, accepted the proclamation. She thanked Mayor Selby and the Assembly for their support. APPROVAL OF MINUTES AWARDS AND PRESENTATIONS STUDENT OF THE MONTH PROCLAMATIONS TAKE OUR DAUGHTERS TO WORK DAY Volume :COI Page 176 Mayor Selby proclaimed May 4 -10 Municipal Clerks Week MUNICIPAL CLERKS in honor of our Borough Clerk, Donna Smith, and her WEEK staff and in appreciation to all Municipal Clerks for the vital services they perform and their exemplary dedication to the communities they represent. Clerk Smith accepted the proclamation. She thanked Deputy Clerk Nielsen for serving as the clerk in her absence. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing Dale Soughers asked the Assembly to implement the well -done school district budget that he felt was easy to read and understand. Gilbert Morein spoke against the proposed rocket launch complex. He felt the government would not inform the community if there was an accident. He opposed property tax increases and thought parents should pay tuition for their children. B. Items Other Than Those Appearing on the Agenda None. COMMITTEE REPORTS Assemblymember W. Stevens, Hospital Advisory Board chair, reported that the management transition from LHS to Providence was just four days away. The hospital would change from a fiscal year budget to a calendar year budget. PUBLIC REARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. 1. Resolution No. 97 -18 Approving the Fiscal Year RESOLUTION 1998 Kodiak Island Borough School District NO. 97 -18 Budget and Determining the Total Amount of Funds to be Made Available From Local Sources. Presented for consideration was Resolution No. 97 -18 that, if adopted, accepted the fiscal year 1998 Kodiak Island Borough School District budget and authorized the appropriation of funds in the Kodiak Island Borough fiscal year 1998 budget. Regular Assembly Meeting April 17, 1997 CITIZENS' COMMENTS COMMITTEE REPORTS PUBLIC HEARING Volume XXII Page 177 G. STEVENS, moved to adopt seconded by MILLIGAN Resolution No. 97 -18. Mayor Selby reported this was the most important meeting for the 1998 fiscal year. The budget philosophy was to get the work done with the funds available. He presented a resolution that would fully fund educational needs in the Kodiak Island Borough. JOHNSON, seconded by MILLIGAN moved to amend Resolution No. 97 -18 in Section 3 by adding $389,000 to the $21,828,264. Assemblymember Johnson outlined his reason for the amendment was the adversarial situation and the Assembly's goal for long -term funding. The school district Long -Term Funding Task Force (LTFTF) was established, and the school district was asked for a proactive budget. He felt the public should have an opportunity to discuss the budget as presented by the school district. Assemblymember G. Stevens questioned when the Assembly would go to public hearing. In response to Presiding Officer Heinrichs, Clerk Smith said public hearing at this time would be on the amendment. Presiding Officer Heinrichs related that would change the nature of the public hearing. JOHNSON, seconded by MILLIGAN VOTE ON MOTION TO SUSPEND Ayes: Noes: None Regular Assembly Meeting April 17, 1997 moved to suspend discussion on the motion to amend Resolution No. 97 -18 until after the public hearing and allow for discussion of both the motion and the amendment. Assemblymember Milligan said the amendment created a different figure than that originally proposed in the resolution. Abell, Johnson, Milligan, G. Stevens, W. Stevens, Heinrichs Volume )01 11 Page 178 Absent: Bonney MOTION CARRIED Unanimous After a five minute recess at 8:10 p.m., to correct technical transmitting difficulties, Presiding Officer Heinrichs reconvened the regular meeting. Presiding Officer Heinrichs opened the public hearing. J)iana Buffington, Alaskans For Tax Reform, read from her letter opposing any tax increase. She felt students were poorly educated and there was faculty waste. She said salaries were seventy percent of the budget that increased annually. Joe Baylor phoned in opposition to the increase. Gilbert Morein opposed the increase. Jake Jacobsen spoke against any increase. He felt the tax burden fell to property owners and there was a need to broaden the tax base. He saw escalating wages that were not comparable with the private sector. He was bothered that government could raise his taxes. Renee Long phoned to say she favored the tax increase. She saw students as future leaders in need of every opportunity for a good education. She challenged anyone to provide quality education to a classroom of 30 students. Don Fox supported the budget in full. More money was needed for education and this was a time to rearrange priorities if funds were lacking. Without aides, disruptive students caused a loss of instructional continuity. He supported a mill increase but preferred looking for other funding sources. petty O'Dell was not opposed to funding education; however, she was concerned about a mill increase. She suggested a resolution in support of tapping the permanent fund or enacting a state income tax. She urged residents to participate in the legislative process. Betty Walters, school district superintendent, said the budget addressed the needs of the schools. She urged the Assembly to approve the budget with the $389,000 additional request of the board. Regular Assembly Meeting April 17, 1997 Volume .` XIi Page 179 patrick Hickey, school district business manager, outlined the need for a fund balance that was acceptable within the audit process. jack McFarland spoke in favor of an increase. He felt teachers were not overpaid. Education created economic well -being in Kodiak because students were the leaders of the future. Mel Levan, Kodiak Borough Education Association president, felt education created productive citizens. Norm Wooten, School Board member, urged the Assembly to consider the entire local contribution. He was concerned about using the fund balance. Bin Burton phoned. He agreed with comments about the permanent fund or a state income tax. Many out of state residents earned Alaska wages and paid state taxes elsewhere. He questioned the $9,000 per student cost of education. He wanted quality education, but only property owners paid the cost. Dale Snughers supported the school district budget without a mill increase. He saw Borough finances affected by the hospital. The community funded the hospital, but state funds were not received as promised, and now the community had to pay more. He referenced Ordinance No. 97 -04 to appropriate funds to the Near Island Research Facility (NIRF). Mayor Selby explained that the debt service on the hospital was exactly what the public approved during election. The appropriation for the NIRF was an investment that created funding back to the Borough. Ron Gibbs phoned to say a mill rate increase would not cause him to relocate, but poor education would. His permanent fund could be used to fund education. patty Holmea wanted innovative ideas to meet community needs. She said it was alarming that the Borough would lose five employees. She was concerned that the school district had funds sitting in the bank. Jerry Holt saw no correlation between the amount of money spent and the quality of education. In ten years property assessments increased 129 percent and a 4 mill increase raised that to 320 percent. He wanted other sources of funding. He saw cannery workers who did not pay taxes because they did not own property. Regular Assembly Meeting April 17, 1997 Volume XXII Page 180 Dick Rohrer said he paid taxes on a significant amount of property. He cautioned that property values and assessments had decreased. More money would not guarantee better education. Parental support at home and in school was the key to success. p�tn Stine" was pro- education. Her children received an education that would create productive community members. Claudia Anderson phoned to say she wanted education funded. She supported strong vocational, science, and computer training. She did not want 35 students in math and English classes. Mike Green wanted quality education at a lower cost. He contended that property owners carried the burden, and he could not afford a mill increase. Dr. Walter Johnson said children were either smart or not because of parenting. He felt the problem was the hospital because the community paid in lieu of state funds that were never received. Mary Jane Randolph phoned. She said aides helped children retain an interest in learning. She said anyone interested could donate their permanent fund. John Rauwolf wanted children to be educated and teachers to be supported. However, there was potential economic impact to a community that could be heading into a recessionary period. He wanted other funding sources reviewed. Kristen Stahl - Johnson said government and school district employees did not feel the economic impact as small business owners and fishermen did. Her children were educated well in a private school at a third of the public education cost. She charged that the Assembly meeting in executive session to discuss negotiations and teacher salaries was not legal. Assemblymember G. Stevens responded that Ms. Stahl - Johnson's charge that the Assembly met in executive session to discuss the teachers' contract was absolutely not true. Pat Holmea wanted full funding. He agreed that years ago there were 30 students per class, but the family unit was complete and that was not the case now. He injured his hand and was happy to have the hospital emergency room. He agreed that he would stay if taxes were increased, but not if education was poor. He saw a school district with dedicated staff. Regular Assembly Meeting April 17, 1997 Volume XXII Page 181 Carol Jenner phoned. She wanted good education, but made less than the average teacher and could not pay more taxes. She thought to reduce administration costs or look to a state tax or the permanent fund. Bill Murdock served on the Long -Term Funding Task Force. He felt the community paid for quality education. He saw state funding reduced. He supported the school district budget. He felt education was under funded in the past. Mary Jane Longrich phoned in support. She saw classes with too many children and argued that quality education could not be compared to money. Roger Reddekopp questioned if residents could afford a mill increase. He spoke of many who were opposed. He suggested halting work on the recreation complex until a tax was in place to support education. Torna Arndt phoned to say more teachers were not needed. She earned less than the lowest paid teacher. She only wanted the librarian hired. She suggested making three Borough positions into two. She suggested parents pay $200 per year per student. She wanted the permanent fund left alone. Julie Cain Hill, teacher, supported the budget. She said the Task Force recommendations were not followed and suggested reviewing alternative methods of funding education. Sandra West phoned. Her children were in classes with 30 well- behaved, alert, and motivated students. Many parents were not involved, and increased taxes meant parents worked more and were less involved. She felt strong families created strong children. Joe Floyd, retired teacher and School Board member, wondered what the cost would be if students were not educated. He saw reduced state funding. He said the School Board was responsible to educate students to enhance the quality of life. He saw the hospital as a wonderful facility. Teachers were not overpaid. Tavis navidson, Kodiak High School student, phoned. He supported the budget and teachers as a vital part of education. Teachers spent many hours after school as club advisors and to help students in need. He felt he received a high quality education. Marro Revis phoned in opposition to a mill increase as it would also affect the raw fish tax. Regular Assembly Meeting April 17, 1997 Volume X III Page 182 Scott Arndt disagreed with the way the school district budget was handled. He saw the school district making cuts when the Borough had not. He thought one mill was for the school district and one mill was for the Borough. After a ten minute recess at 10:21 p.m., Presiding Officer Heinrichs reconvened the regular meeting. Marty Monroe asked to donate his time to Scott Arndt. Presiding Officer Heinrichs ruled that out of order. pat Fox was supportive because her son had great teachers. She contended that private schools could chose their students. Jean Barber, school board member, said the schools needed the money. She noted that aides worked with specific students, not all students. Clarence Selig supported the budget to ensure that children received quality education. Chris Helmer school district Budget Development Committee member, said the budget was prepared by those elected to take care of education business. This allowed eliminated programs to be reinstated. He contended that teachers were not overpaid and spoke of combat -zone lunch periods at the middle school. Mark Majdic opposed bonuses and increased wages but did not oppose funding quality education. He saw the economy declining. He wanted negotiations in a public process. Woody Koninq, Chiniak School Advisory Committee member and Task Force member, said it was vital to fully fund education. He appreciated the School Board's proactive choice to include previously cut programs. He was concerned about Kodiak's economy and wanted other funding sources sought. peggy Rauwnlf did not mind funding education, but not just property owners should pay for education. She appreciated teachers' knowledge, but contended that a masters degree was not needed to teach children English. J1ee Russell, land developer, said a mill increase would be a heavy hit because he had 15 -20 properties. He felt Kodiak had fantastic teachers but everyone had to cut -back if the community was to survive. Regular Assembly Meeting April 17, 1997 Volume XIS Page 183 Jay Warren phoned. He said everyone had to cut back for the community to survive. Presiding Officer Heinrichs closed the public hearing at 10:58 p.m. and reconvened the regular meeting. Assemblymember Abell favored the amendment for the first year of a five -year plan. He saw the fishing industry struggling to survive. In response to Assemblymember W. Stevens, Mayor Selby said that without the amendment, there would be a two mill increase in the entire Borough budget. He added that the contribution to the school district and capital projects were 70 percent of the budget. At further questions, Mayor Selby outlined that there was a $300,000 difference between the September budget and the current budget. Assemblymember G. Stevens remembered that Mayor Selby expressed concern that salary scale adjustments changed and there were operating cost adjustments of $75,000. Patrick Hickey related that salaries were listed in generalities because salaries changed through attrition. The numbers in the budget were the same as in October and they had changed since then. Some utility costs were estimated; but if there were additional funds in a line item, the funds would stay there until the end of the year. When Presiding Officer Heinrichs noted discrepancies in the figures in the narrative and the budget, Mr. Hickey said there were discrepancies as the $389,000 was added by the school board. He noted that with additional funds, foundation funding and impact aid increased and line item figures changed. He asked the Assembly to look specifically to the budget. Assemblymember G. Stevens wanted to determine what the community could afford. The crisis was brought on internally, not by state decreases or student increases. Voters had failed to institute any sales taxes in the past, and he foresaw a movement to cap the mill rate, which would make it difficult to balance the budget. He spoke against the amendment. At 11:30 p.m. per Borough code, a motion was needed to extend the time of the meeting. Regular Assembly Meeting April 17, 1997 Volume X III Page 184 JOHNSON, moved to extend the seconded by MILLIGAN meeting to midnight. VOTE ON MOTION TO EXTEND MOTION CARRIED Unanimous voice vote Assemblymember Milligan read from a letter from Bruce and Cheryl McNeil relating to the average child and lost programs. He supported the budget and was honored to substitute teach at the schools. In response to Assemblymember W. Stevens, Mayor Selby said using a portion of the school district fund balance would allow the Borough to fully fund fiscal year 1998. He did not support maintaining $2 million in the fund balance and then raise taxes by 4 mills. The school district should come back to the Assembly for needed additional funding rather than drawing from a fund with no public notice. He proposed reducing the fund balance slowly to $500,000. He wanted the school district to start a process of reducing their budget. School district employees should be a part of the solution. More voluntary help was needed. He commended the school district for their budget cutting but more was needed. Assemblymember Johnson said public hearing comments in favor and opposed were equal. He noted that a sales tax on the ballot failed twice. Assemblymember W. Stevens saw a challenge to find a way to allow people to teach without a teaching certificate. In response to Presiding Officer Heinrichs, Superintendent Walters said English as a second language was a new program that was not previously needed, and special education aides were funded through a federal grant for unanticipated needs. At midnight, per Borough code, a motion was necessary to extend the time of the meeting. MILLIGAN, seconded by JOHNSON VOTE ON MOTION TO EXTEND MOTION CARRIED Unanimous voice vote Regular Assembly Meeting April 17, 1997 moved to extend the the meeting to 12:30 a.m. Volume XXII Page 185 There was no further discussion on the budget amendment. VOTE ON MOTION TO AMEND Ayes: Johnson, Milligan, W. Stevens, Abell, Noes: G. Stevens, Heinrichs Absent: Bonney MOTION CARRIED 4 Ayes, 2 Noes Assemblymember Milligan saw English as a second language as very valuable. He wanted to compare teacher wages to other areas in Alaska. Assemblymember Johnson felt the Assembly recognized Kodiak's education needs. The future Town Meeting would focus on education and involve citizens. In response to Assemblymember G. Stevens, Mayor Selby said the budget had a 2.5 mill increase. If part of the fund balance was not used for the school district, the mill rate would increase to 3.75. VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: None Absent: Bonney MOTION CARRIED Unanimous 2. Ordinance No. 97 -04 Authorizing an Investment of ORDINANCE an Amount in the Kodiak Island Borough NO. 97 -04 Facilities Fund in the Lease of the Near Island Research Facility, Appropriating the Sum of $8,000,000 From the Facilities Fund for Such Investment, Appropriating Certain Ground Rent Under the Lease of the Near Island Research Facility to the Facilities Fund, and Providing for Related Matters. Presented for consideration was Ordinance No. 97 -04 that, if adopted, authorized the mayor, finance director, borough clerk, or other authorized person to execute documents, opinions, or other papers necessary to implement the intent of the ordinance. Regular Assembly Meeting April 17, 1997 Milligan, G. Stevens W. Stevens, Abell, Johnson, Heinrichs Volume 7001 Page 186 W. STEVENS, moved to adopt seconded by G. STEVENS Ordinance No. 97 -04. Mayor Selby said this was an investment of $8 million to purchase revenue bonds to complete construction of the Near Island Research Facility (NIRF). The advantage was the Borough would save money by not selling the bonds to another entity. Once interest was earned there would be funds to maintain Borough facilities. In response to Assemblymember Milligan, Mayor Selby said the funds would stay in the NIRF fund. Presiding Officer Heinrichs called for public testimony. Jack McFarland was concerned that the Assembly was circumventing the public by using the funds. He said it was not right to spend the corpus that was intended for maintenance of Borough facilities. Scott Arndt felt good questions were raised. He suggested postponing the ordinance for further review. Presiding Officer Heinrichs closed the public hearing. In response to Assemblymember Milligan, Mayor Selby said the GSA lease was not subject to annual appropriations. The lease would be paid from a fund already established. Mayor Selby added that this would sell $8 million of fully marketable revenue bonds and make an investment at approximately six percent interest. In response to Assemblymember W. Stevens, Mayor Selby said the corpus would not be spent but would be invested to earn more interest. At 12:30 a.m., per Borough code, a motion was necessary to extend the time of the meeting. MILLIGAN, moved to extend the seconded by W. STEVENS meeting to 12:40 a.m. Assemblymember G. Stevens felt the Assembly was not doing the public justice by making decisions so late at night. Regular Assembly Meeting April 17, 1997 Volume X XII Page 187 VOTE ON MOTION TO EXTEND MOTION CARRIED Voice vote All but Assemblymember G. Stevens responded affirmatively. In response to Assemblymember Johnson, Mayor Selby said the interest return would be better so more funds would be available for facilities maintenance. VOTE ON MOTION TO ADOPT Ayes: W. Stevens, Johnson, Milligan, Heinrichs Noes: G. Stevens, Abell Absent: Bonney MOTION CARRIED 4 Ayes, 2 Noes JOHNSON, seconded by MILLIGAN moved to extend the meeting until those people present speak under citizens comments. VOTE ON MOTION TO EXTEND MOTION CARRIED Unanimous voice vote CITIZENS' COMMENTS Superintendent Walters thanked the Assembly for considering the school district budget resolution. Jack McFarland said the Assembly basically gave the school district what it was in deficits. He was concerned about the use of $8,000,000 for the Near Island Research Facility. Mayor Selby outlined that the GSA lease would cover the cost of the building. Mr. McFarland contended that the Borough was revenue bonding. Scott Arndt said the Assembly had not addressed the need for a two mill increase next year. He saw a serious problem with the drastic increases in school district needs. Regular Assembly Meeting April 17, 1997 Volume XXII Page 188 patrick Hickey thanked the Assembly for their attention to a budget that he would continue to refine. Betty Fitzjearl said she owned one of the ten parcels affected by Ordinance No. 97 -07. She was in favor of the ordinance to exempt those parcels abutting a state -owned road. The Womens Bay Service Area Board recommended approval of the ordinance. Scott Arndt said his property in Service District No. 1 also abutted a state -owned road and he would appreciate the same treatment. Presiding Officer Heinrichs announced the assembly would meet in a joint Assembly /Council public meeting with the Alaska Aerospace Development Corporation on the rocket launch facility on Tuesday, April 22, at 7:00 p.m. in the assembly chambers, a work session Thursday, April 24 at 7:30 p.m. in the borough conference room and a regular meeting on Thursday, May 1 at 7:30 p.m. in the assembly chambers. At 12:59 a.m. on April 18, 1997, Presiding Officer Heinrichs recessed the meeting to Saturday, April 19, 1997, at noon in the assembly chambers. At noon on Saturday, April 19, 1997, Presiding Officer Heinrichs reconvened the Assembly meeting of April 17, 1997. For the record, he noted all members were present that were present at the April 17, 1997 meeting. PUBLIC HEARING 3. Ordinance No. 97 -05 Amending Kodiak Island Borough Code of Ordinances Title 15 Buildings and Construction to Conform With Changes in the Uniform Building Code Published by the International Conference of Building Officials and to Standardize the Kodiak Island Borough and the City of Kodiak Building Codes. Presented for consideration was Ordinance No. 97 -05 that, if adopted, adopted building codes identical to that of the City of Kodiak as identical codes are of great benefit to builders, property owners, and staff. JOHNSON, moved to adopt seconded by MILLIGAN Ordinance No. 97 -05. Regular Assembly Meeting April 17, 1997 MEETING RECESSED MEETING RECONVENED PUBLIC HEARING ORDINANCE NO. 97 -05 Volume XX1I Page 189 Mayor Selby explained that the Joint Building Code Review Committee reviewed and recommended the changes to the buildings and construction code. Presiding Officer Heinrichs called for public testimony; hearing and seeing none, he reconvened the regular meeting. Assemblymember Milligan noted that the ordinance deleted more language than what was added. He felt most builders would appreciate the recommended deletions. Responding to Assemblymember Stevens, Clerk Smith said the City of Kodiak had not completed their process but that the effective dates were the same. Mayor Selby said the major change was to allow the use of local spruce lumber for construction. Assemblymember Heinrichs explained that spruce lumber was based on percentage reduction. Subsequently, the committee called a forester to conduct grading tests, and the numbers in the ordinance were based on the results of the tests. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: Bonney MOTION CARRIED Unanimous Regular Assembly Meeting April 17, 1997 W. Stevens, Abell, Johnson, Milligan, G. Stevens, Heinrichs 4. Ordinance No. 97 -06 Rezoning Tract A and Lot 7, ORDINANCE Industrial Park Subdivision From I-- Industrial NO. 97 -06 TQ RB -- Retail Business. (2522 and 2620 Selief Lane) Presented for consideration was Ordinance No. 97 -06 that, if adopted, rezoned property consistent with the Lakeside Subdivision /Safeway Subarea Plan. W. STEVENS, moved to adopt seconded by MILLIGAN Ordinance No. 97 -06. Mayor Selby said this would rezone properties located between the new Borough ballfield complex and Safeway shopping center. The Planning & Zoning Commission Volume XXII Page 190 and staff recommended the rezone from industrial to retail business. Presiding Officer Heinrichs called for public testimony; hearing and seeing none, he reconvened the regular meeting. Assemblymember Heinrichs previously spoke with staff and he understood that retail business zoning more closely conformed with the area plan. VOTE ON MOTION TO ADOPT Ayes: Abell, Johnson, Milligan, G. Stevens, W. Stevens, Heinrichs Absent: Bonney Noes: None MOTION CARRIED Unanimous 5. Ordinance No. 97 -07 Amending Kodiak Island ORDINANCE Borough Code of Ordinances Title 4 Service Areas NO. 97 -07 Chapter 4.50 Womens Bay Service Area to Add Chapter 4.50.015 Service Exemptions to Reflect an Exemption For State Road Access for Parcels Not Receiving Any Benefit from Road Construction and Maintenance. Presented for consideration was Ordinance No. 97 -07 that, if adopted, amended Borough code to reflect an exemption for Womens Bay Service Area properties not receiving benefit from road construction and maintenance. G. STEVENS, moved to adopt seconded by MILLIGAN Ordinance No. 97 -07. Mayor Selby said the ten parcels facing the Chiniak/ Rezanof West state highway had no access to any service area road as the service area was behind them. The Womens Bay Service Area Board acknowledged that no service was provided. He defined the service area structure in Title 29 of Alaska Statutes. Since grading and maintaining the state road was not provided by the service area, the parcels should not be taxed. He said the parcels would remain in the fire service area because they received that service. He noted that the Board recommended the exemption. Mayor Selby responded affirmatively to Assemblymember Johnson's presumption that the owners of those Regular Assembly Meeting April 17, 1997 Volume XXII Page 191 properties would not be any more likely to use the service area road system in Bells Flats than those living in the city of Kodiak. Presiding Officer Heinrichs opened the public hearing. Dave conrad, Womens Bay Service Area Board chair, encouraged passage of the ordinance. He said it was not an easy decision because of the many factors and the realization that a precedent could be set. He was available for questions. In response to questions, he said the property owners were community members and business owners, but since the tax was a direct service tax, the recommendation was proper. Jim Rippey, one of the property owners, expressed his opinion that taxation without representation was wrong as well as paying for a service that was not received. He encouraged passage. He knew of numerous new homes being built that would increase property values, including the property the Borough was proposing to sell, that would off -set the loss of taxing the commercial property. Betty Fitzjearl said the ordinance was not done in a hurry. She talked with the city council and was told they were working on annexation of that area. Seeing and hearing no further testimony, Presiding Officer Heinrichs closed the public hearing and reconvened the regular meeting. Assemblymember Stevens thought the exemption made sense because it was a direct service tax. He knew it was setting a precedent. He asked Mayor Selby to elaborate on discussions within other service areas. Mayor Selby's view was to consider issues on a case by case basis before making a decision. Due to the many interconnecting roads in Service District No. 1, the process needed to be worked through carefully. He intended to start the process in Service District No. 1 but not to rush because of this ordinance. Service District No. 1 previously included water /sewer services, and the reason for keeping that tax base had changed. At Assemblymember Milligan's question about service areas and education in Title 29, Mayor Selby said education was an area wide power the Borough accepted as mandatory, driven by general mill levy. Tax Regular Assembly Meeting April 17, 1997 Volume XXII Page 192 assessment and planning and zoning were also powers designated to boroughs by state statutes. All other powers can be non -area wide driven by a service. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: Bonney MOTION CARRIED Unanimous MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Johnson, Milligan, G. Stevens, W. Stevens, Abell, Heinrichs Mayor Selby reported that the Shuyak Park bill would be on the floor of the House next week with the recommendation to pass. The biggest hurdles were cleared, and he believed the bill could be on the governor's desk within 10 -15 days. The House accepted the Senate bill with no amendments. Discussion with Senator Mackie indicated the seafood inspector position in Kodiak would not be eliminated upon retirement of the current inspector. He also believed the State would continue solid waste regulations through the state Environmental Protection Agency, not through federal regulations. On Monday, April 21, 1997, the Kodiak Island Hospital lease with Providence would be effective. An open house was scheduled for May 12, 1997. The GSA lease for NOAA would be the vehicle to transfer the $3 million buy -down for cost reimbursement on the Near Island Research Facility. The first $3 million of the funding package would be spent for construction starting in May. Responding to comments during the public hearing on the school district budget, he clarified the only impact on the mill levy for the hospital was the $780,000 pay -down on the bond indebtedness that was stated when the bonds were voted on. It was actually less than anticipated, for less than one mill of tax levy. He enumerated the $18 million revenues for the construction costs as being $9.5 million in bonds, $4 million energy loan being paid by hospital revenues, $500,000 from the state of Alaska, interest earnings on bonds and capital project funds, and $2.8 million borough funds transferred from the major maintenance Regular Assembly Meeting April 17, 1997 Volume XXH Page 193 fund designed to use on hospital construction. The $2.8 million was replaced with $36 million for interest earnings in excess of $3 million to maintain facilities. He thought this was good for the community in that the only impact on the mill levy would continue to be the $780,000 per year until the $9.5 million bonds were paid, not the entire $18 million for construction. By doing this, the $36 million for maintenance would not be used although there was authorization to use a portion of debt service on a year by year basis after interest monies and maintenance demands were calculated. A quality medical facility was now available without added burden to taxpayers. Responding to Assemblymember Milligan, Mayor Selby said the bonds were sold at a 3.5 percent interest rate. The $36 million was a result of the Shuyak Island land sale payments over a seven year period. After the final payment in four years, there would be a fully functional major maintenance fund. Interest earnings were available yearly from the fund with $166,000 available for the fiscal year 1998 budget. The fund was inflation proofed with 15 percent of the yearly interest earnings deposited in the corpus of the fund. Maintenance expenses from the general fund should cease in a couple of years. Facilities maintenance at $500,000 in the fiscal year 1998 budget funds a preventative maintenance program for $100 million of facility assets. The demand for maintenance had risen because some of the buildings were 10 -12 years old, requiring preventative maintenance for a 40 -50 year facility life. OLD BUSINESS None. NEW BUSINESS Presented for consideration was Resolution No. 97 -10 that, if adopted, established the fees for the 1998 fiscal year. Regular Assembly Meeting April 17, 1997 OLD BUSINESS NEW BUSINESS A. CONTRACTS CONTRACTS None. B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 97 -10 Establishing Fees of RESOLUTION the Kodiak Island Borough for Fiscal Year NO. 97 -10 1998. Volume XXII Page 194 JOHNSON, moved to adopt seconded by G. STEVENS Resolution No. 97 -10. Mayor Selby enumerated the changes in the garbage fees and the sliding fee scale for the Mental Health Center as the only fees to change. In response to Assemblymember Heinrichs, Mayor Selby explained the increase in fees at the Mental Health Center affected those with a higher income for increased revenues of $30- 40,000. Solid waste fees generated about $1 million towards the costs at the landfill. The next largest source of revenue from fees was $30,000 in building permit fees. Assemblymember G. Stevens was shocked at the large $250,000 subsidy to the Mental Health Center for this year. He understood people need mental health care and the reasons for the discounts but was struggling with the $250,000 Borough general fund subsidy. Assemblymember Milligan agreed with Assemblymember G. Stevens' valid points. He wondered how much the estimated fees would impact the Mental Health Center subsidy for next fiscal year. Mayor Selby said the anticipated adjustment should increase actual payments into the Center by $30,000 for the 1998 fiscal year. It was agreed the goal was for the Mental Health Center to pay its own way while not denying services for low income patients. He agreed the Center should not be subsidized with general funds. He would elaborate on the particulars at the work session scheduled for April 24, 1997. Also, what happened to patients in reference to the schedule to reach an ideal balance would be examined. Responding to Assemblymember Abell, Mayor Selby explained the Mental Health Center originally was funded through grants at about three times what was funded now. Reduced grants and new regulations for multiple contributors reduced funding. Assemblymember Stevens pointed out that the subsidy was for those earning less than $50,000 annually. VOTE ON MOTION TO ADOPT Ayes: Noes: None Regular Assembly Meeting April 17, 1997 Milligan, G. Stevens, W. Stevens, Abell, Johnson, Heinrichs Volume XXII Page 195 1 Absent: Bonney MOTION CARRIED Unanimous 2. Resolution No. 96 -10C Amending Resolution No. 96 -10 Establishing Fees of the Kodiak Island Borough to Waiver Fees for Disposal of Junk Vehicles During Spring Clean -up. Presented for consideration was Resolution No. 96 -10C that, if adopted, provided recycle opportunities for junk vehicles during spring cleanup. Mayor Selby noted that about 200 vehicles were junked in a two week period during spring cleanup. It was nice to have junk vehicles removed from the roads. This year the vehicles would be inventoried to schedule landfill disposal to ease the shipping schedule from the community. The Community Development Department staff would set the date for pick up of the vehicle. Assemblymember W. Stevens expressed appreciation from the Chamber of Commerce for the Borough's efforts to help clean up the community. W. STEVENS, moved to adopt seconded by MILLIGAN Resolution No. 96 -10C. VOTE ON MOTION TO ADOPT Ayes: Noes: Absent: MOTION CARRIED C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS G. Stevens, W. Stevens, Abell, Johnson, Milligan, Heinrichs None Bonney Unanimous 1. Appointments to Road System Fire Protection Area Task Force. Presiding Officer Heinrichs said the task force was pursued as a result of discussions during goals and objectives. Regular Assembly Meeting April 17, 1997 RESOLUTION NO. 96 -10C ORDINANCES FOR INTRODUCTION OTHER ITEMS APPOINTMENT TO ROAD SYSTEM FIRE PROTECTION AREA TASK FORCE Volume XXII Page 196 He requested confirmation of the Assembly for the following appointments to the Road System Fire Protection Area Task Force: City Council - Charles Davidson City Fire Department - Dennis Williamson Womens Bay Fire Department - Dave Conrad Bayside Fire Department - Earl Smith Chiniak - Woody Koning Assembly - Wayne Stevens Hospital - Phil Cline Coast Guard - Lt. Cmdr. Mark Frost Insurance Industry - Ed Randolph JOHNSON, seconded by MILLIGAN VOTE ON MOTION TO CONFIRM Ayes: Noes: Absent: MOTION CARRIED INFORMATIONAL MATERIALS (No action required) A. MINUTES OF OTHER MEETINGS 1. Womens Bay Service Area Board Regular Meeting of February 10 and Special Meeting of March 3, 1997. 2. Kodiak Island Hospital and Care Center Advisory Board Meeting of February 19, 1997. 3. Kodiak Island Borough School District Board of Education Regular Meeting of February 17 and Special Meeting of March 17, 1997. B. REPORTS move to confirm the presiding officer appointments to the Road System Fire Protection Area Task Force. W. Stevens, Abell, Johnson, Milligan, G. Stevens, Heinrichs None Bonney Unanimous 1. Kodiak Island Borough School District Board of Education Summary of March 31, 1997 Meeting. Regular Assembly Meeting April 17, 1997 INFORMATIONAL MATERIALS MINUTES OF OTHER MEETINGS REPORTS Volume XXR Page 197 2. Kodiak Island Borough School District January 1997 and February 1997 Financial Reports. 3. Engineering /Facilities Department March 1997 Project Updates. C. OTHER None. CITIZENS' COMMENTS Dave Conrad asked the Assembly to consider an 11:00 p.m. adjournment time and to reschedule the rest of the meeting at a later date, preferably not at noon the next day. He believed the assembly was a service board for the community and should be as available as possible. Joe Macinckn told of the controversy about the Kodiak Convention and Visitor's Bureau and Wanetta Ayers lobbying for the charter boat industry. Since the lobbying was not in the interest of all Kodiak, he thought the use of Borough and City non - profit funding was inappropriately. Betty Fit7jearl was of the opinion that if citizens believed in something, they should come before the Assembly as a way of keeping the community together. ASSEMBLYMEMBER COMMENTS ASSEMBLYMEMBER COMMENTS Assemblymember Stevens reminded the community of the May 3, 1997 clean up date and asked them to set aside some time to participate. Assemblymember Milligan complimented the chair for his method of conducting business for this meeting on Thursday evening. He agreed the meeting was too long and it was difficult to make important decisions late at night. In response to Assemblymember Milligan, Mayor Selby explained the Borough endorsed the rocket launch facility and the paid lobbyist adhered to the policies of the assembly while lobbying. For a short time, December 1994 through March 1995, the former borough lobbyist was contracted specifically for the rocket launch facility because a new lobbyist was hired that was not familiar with the project. When the new lobbyist was hired elsewhere, the former lobbyist was retained for all Borough interests. Regular Assembly Meeting April 17, 1997 OTHER CITIZENS' COMMENTS Volume XXII Page 198 1 The filing fee for the conditional use permit on the rocket launch complex was paid by resolution of the assembly as was done on a regular basis with village projects. The signature on the application was Pat Ladner's. Assemblymember Milligan was encouraged by the good comments received during the school budget public hearing and was impressed with the detail of issues confronting education. The community should be concerned with the quality of education and state funding. He encouraged the public to keep tracking education policies and to consider running for office. Education affects more than just the economics of our community. He felt a good decision was made and the school district administration was successful in presenting a newly formatted budget. He remembered that last year school board member Jean Barber requested a one teacher increase that was denied and this year the number of teachers were increased by more than one. He hoped the public asked questions of education. Assemblymember Stevens thought the meeting was very good. He suggested to Clerk Smith the goal of scheduling as few agenda items as possible during budget time. He thought there was much repetition and it might be wise to ask speakers to state their position on the issue and not repeat themselves. He noted that because of other evening meetings, the meeting could not recess to an evening meeting. Assemblymember Johnson echoed Assemblymember Milligan's comments. He sincerely hoped all concerned citizens would attend the Town Meeting in September to discuss education issues to find some direction. He thought there was value in hearing everyone's opinion even if some was repetitive. He said that people with health insurance and those without correlated with people who supported the budget and those who did not. Assemblymember Abell thought Mr. Hickey worked well with the mayor and finance director. He was aware the mill levy was now where it was ten years ago. He encouraged the fishing industry to speak to issues. Presiding Officer Heinrichs was surprised to hear discussion in Juneau about providing an endowment fund for maintenance. The Borough should be commended for taking a proactive approach as other communities had not. He announced the Assembly would meet in a joint Regular Assembly Meeting April 17, 1997 Volume /OCR Page 199 Assembly /Council public meeting with AADC on the rocket launch facility on Tuesday, April 22, at 7:00 p.m. in the assembly chambers, a work session Thursday, April 24 at 7:30 p.m. in the borough conference room, and a regular meeting on Thursday, May 1 at 7:30 p.m. in the assembly chambers. There being no further business to come before the ADJOURNMENT Assembly, the meeting adjourned at 1:24 p.m. ATTEST: /N/7flV7 d I ti Donna F. Smith, CMC /AAE Borough Clerk Regular Assembly Meeting April 17, 1997 Robin Heinrichs Presiding Officer Adopted: 05/15/97 Volume ICdI Page 200