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1997-06-05 Regular MeetingRODIAN ISLAND BOROUGH Regular Assembly Meeting June 5, 1997 A regular meeting of the Kodiak Island Borough Assembly was held June 5, 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 Andy Ozols of St. Paul's Lutheran Church, followed by the Pledge of Allegiance. There were present: Robin Heinrichs, Tom Abell Bob Johnson Gary Stevens comprising a quorum of Jerome Selby, Mayor Donna Smith CMC /AAE, Clerk Judi Nielsen, Deputy Clerk APPROVAL OF AGENDA AND CONSENT AGENDA MILLIGAN, seconded by W. STEVENS VOTE ON MOTION TO APPROVE MOTION CARRIED APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS Regular Assembly Meeting June 5, 1997 Presiding Tuck Bonney Mike Milligan Wayne Stevens the Assembly; and moved to approve the agenda and consent agenda. Unanimous voice vote Mayor Jerome Selby presented the Employee of the Month Award to Bud Cassidy, resource management officer in the Mayor's Office. REGULAR MEETING ROLL CALL APPROVAL OF AGENDA AND CONSENT AGENDA APPROVAL OF MINUTES AWARDS AND PRESENTATIONS EMPLOYEE OF THE MONTH Volume XXII Page 237 CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing jean Barber, School Board unhappy that the Assembly meet to discuss Ordinance School Board from five to vote no on the increase. president, said she was and School Board did not No. 97 -08 to increase the seven members. She would Jack McFarland, School Board member, agreed with Ms. Barber. He termed the Assembly arrogant because he felt the ordinance implied assumptions of bigotry on the Board's part. He said few people placed their name on the ballot for school board. Bill Whitaker, Woodland Acres resident, complained that the dust on dirt roads was blinding. He asked the Assembly to look for a remedy to the problem. In response to Assemblymember Milligan, Mayor Selby said residents asked the Service District No. 1 Board to review the problem. The Board's concern was they had no experience with the material used and the state was even testing materials. (;aynell Hatcher, Woodland Acres resident, said her home was between Sean Circle and Puffin Drive and the heavy traffic created tremendous dust. She asked the Assembly to take part in the decision. Scott Arndt, Service District No. 1 Board member, said that at the last meeting the Board authorized the purchase of dust control material. He noted that no residents attended the budget public hearings to voice their concerns. J2pn Tawhead, Sean Circle resident, phoned to express that he wanted dust control. B. Items Other Than Those Appearing on the Agenda None. COMMITTEE REPORTS Assemblymember Johnson reported that the Town Meeting scheduled for September 27 would focus on education. The objective was to discuss education and develop recommendations for the education system in Kodiak. He would continue to provide information. Regular Assembly Meeting June 5, 1997 CITIZENS' COMMENTS COMMITTEE REPORTS Volume Page 238 Assemblymember Milligan reported that Planning and Zoning Commission discussion centered on Beaver Lake overlay and non - conforming issue review. He also reported the salmon prices and their affect on fisherman garnered the most discussion by the Economic Development Committee. 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. 97 -10 Levying Taxes on All Taxable ORDINANCE Real and Personal Property Within the Kodiak NO. 97 -10 Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal Year Commencing on the First Day of July 1997 and Ending on the Thirtieth Day of June 1998. (1998 Fiscal Year Budget) Presented for consideration was Ordinance No. 97 -10 that, if adopted, set the 1998 fiscal year mill levy. JOHNSON, moved to adopt seconded by G. STEVENS Ordinance No. 97 -10. G. STEVENS, seconded by MILLIGAN VOTE ON MOTION TO AMEND Regular Assembly Meeting June 5, 1997 moved to amend Ordinance No. 97 -10 by substitution. MOTION CARRIED Unanimous voice vote Mayor Selby said this was the final presentation of the budget at 9.25 mills. He thoroughly outlined the changes in the substituted version. He appreciated the wise and careful investments of Karl Short, finance director. He noted there was close to $50 million in capital projects. Mayor Selby referred to the summary statement. The statement included the 2.5 mill tax levy increase. He agreed that no one wanted to increase taxes. He said funds from oil revenues were down and most people would like to receive services without paying for them, but either services would be cut or taxes raised. He related to intense discussion and the Assembly's desire to fund education. The $758,000 Volume XXII Page 239 bond debt service for the hospital was approved by 78 percent of the voters. Assembly resolution had determined that $416,780 was an appropriate level of funding for non - profits. Fixed operational costs such as rent, audit, utilities locked up $8 million of a $10.5 million budget. The remainder was for central operations of the Borough, such as $249,060 for the Mental Health Center, $40,460 for parks, personnel salaries, contracts, and support services. He commended Borough staff for reducing the operating budget by 12 percent. Without that, the total mill rate would be at 11.5 mills instead of 9.25. No other entity cut their budget as well. Kodiak's population had increased and demands for services increased. He reminded the Assembly of the awards received by Karl Short, finance director, for smart money management. The Borough has never relied on oil revenue sources. The budget was based on the Assembly's goals and objectives, public input at the educational level, and how to pay for services. The Ketchikan Gateway Borough, with a population 700 higher than Kodiak, with an assessed value of $2 million more, had twice as many assessing and data processing staff as well as a 13.5 mill levy, a 2 percent sales tax, and a 4 percent bed tax to do what the Kodiak Island Borough does. He commended Borough employees for their quality work with a single digit mill levy. Since 1991 there had not been a general fund mill increase, although education costs had increased by almost 3.55 mills. Of the 25,000 local governments in the United States, the Kodiak Island Borough was in the top five percent in terms of cost effective deliverance of services. In response to Assemblymember Milligan, Mayor Selby said a mill was approximately $790,000. He projected severance tax revenues of $1,730,000 - -1/3 from logging and 2/3 from fishing. Presiding Officer Heinrichs opened the public hearing. Jake Jacobson opposed the mill rate increase. He spoke of shortfalls at the Mental Health Center and a need to review the school district budget to cut costs. He said there was a petition to not impose any new taxes and place any tax increase on the ballot that was signed by over 600 residents. Regular Assembly Meeting June 5, 1997 Volume 7c __ Page 240 Diana Buffington, Alaskans For Tax Reform spokesperson, opposed the increase. She spoke to the petition circulated requesting no new taxes and a 60 percent voter approval to increase taxes. Don Fields, Mental Health Center clinician, asked for continued funding for the Center. He suggested positions vacated by retirements should not be filled until completion of an organizational analysis. Evelyn Wiszinpkas, Mental Health Center clinical psychologist, supported continued funding of the Center and the organizational analysis. She said the Center was top heavy in administration. Staff had recommended changes that were ignored, so her only recourse was to speak publicly. Ben Ardinter opposed any tax increase. He asked about funds received from the Shuyak Island land sale and what funds were used for the Near Island Research Facility (NIRF), because he saw funds set aside for maintenance, not education. Jack McFarland said the budget problems were caused by more than just the school district budget. He encouraged the Assembly to look to the School District Long Term Funding Task Force (LTFTF) recommendation to work with an endowment fund. The LTFTF saw the need for a one mill increase per year. He suggested the Assembly have an independent audit of the hospital because the hospital and the NIRF money was meant for schools. He thought the Assembly was out of control when they spent $8.9 million at midnight for the FITC. He asked the Assembly to look at different revenue sources or go to the public with a sincere tax plan. He wanted the mill increase held at 1.5 mills because the school district did not receive that much. He said the school district was sacrificing and that spending 1999 funds in 1998 was deficit spending. Mel Stephens opposed the tax increase. There was no significant population increase so higher taxes could not be attributed to that. He saw a 54 percent tax increase over ten years but services had not increased 54 percent. He saw the level of frustration in the community higher than ever before and felt the Assembly's choice was an alternative budget with a zero increase. Regular Assembly Meeting June 5, 1997 Volume XXII Page 241 Tom Doolelt opposed any increase. The welfare of the fishing community was at risk. He wanted to retire in Kodiak, but prices were high. He wanted a state income tax reinstated. Kim Patterson phoned. As a Borough employee, she would be layed off from her position on July 1. She had requested reduced hours and knew of others who had requested the same and were denied. She suggested looking at each departments' travel and training budgets. Betty Walfars, superintendent of schools, said few people came forward to serve on the LTFTF. The LTFTF held public meetings from July to October last year, and the budget process began in November 1996. There was a continued effort to have people serve on committees. Roger Reddekooq opposed a tax increase of 2.5 mills. He commended superintendent Walters who did not have an assistant. He suggested reviewing teachers' contracts earlier in the year. He approved of increasing the school board to seven members. He felt teachers were not over paid because costs in Kodiak were high. Roger Rlackett saw this as a 37 percent increase that he opposed. As a Monashka Bay resident, he had no paved roads, no side - walks, no garbage service, no local police service, and only partial fire service. He wanted good education provided. He suggested cutting Borough staff, consultants, and legal costs. Carolyn Heitman phoned. She opposed the tax increase. She said the voters voted for a hospital addition, not a new hospital. She contended that taxpayers were in bondage to the Borough and had no say regarding the NIRF and that Peterson Elementary School funds went to the hospital. Although Mayor Selby responded to her questions about Peterson Elementary School funding, Ms. Heitman continued to blame all the problems on the hospital. Mayor Selby responded that the approved budget for the remodel of the old hospital was approximately $3.3 million. The total for everything, including design, was about $23 million dollars. Regular Assembly Meeting June 5, 1997 Volume Page 242 Ms. Heitman wanted any increases to fund education and not the general fund. Betty Fitzjearl phoned. She opposed any increase because residents could not afford the increase. She saw many who were angry and frustrated and a need to trim extras. Sid Pruitt. Jr. was opposed to the mill increase that would cost him $500, which was one week's salary. He saw a need to cap spending, especially at the school district, since Kodiak did not have a constant cash flow. He said Kodiak had a Cadillac school system when a Chevrolet would do. He felt the Borough had expanded too far with the hospital and the NIRF. He saw no need to increase the number of members on the school board. Ginny Sargent phoned. She opposed any increase. Her biggest gripe was the school in Chiniak. She said the school board should look at what was going on in the village schools. She felt residents could not afford the increase. Cheryl McNeil supported the increase as she appreciated and was willing to pay for the services received and the education provided to children. She paid $2,100 less in property tax than what her sister in Fairbanks paid for the same valuation of property. She felt the petition being circulated was an emotional appeal to an uninformed response. George Rieth phoned in opposition. Kiela Pickett phoned in opposition. Scott Arndt opposed the mill increase. He pointed out the problems in the budget as he perceived them. It was his opinion the choice was to amend the budget and reduce the increase. He felt that deficit spending at the school district would create the need for a mill rate increase next year. He said a one mill increase would fund the schools. tctrna Arndt phoned in opposition. She said property taxes were bleeding the residents, and the Assembly voted against the wishes of the residents. J1acey Berns, LTFTF member, approved of the increase because she saw teaching positions and classroom aide positions cut. The cost of education was rising, but Regular Assembly Meeting June 5, 1997 Volume XXII Page 243 the revenue base was declining because of reduced fisheries. She wanted to streamline costs but still provide quality education. Dave Campfield, Ouzinkie volunteer fire department and village response team member, phoned. He supported Mental Health Center services. He heard viable complaints about high taxes, but the services were needed. He heard that educators were overpaid, but he felt the Borough paid for quality education. Robin Killeen bought a home in Woodland Acres that was within her budget. A 2.5 mill levy increase would increase her taxes to 13 percent and that was over her budget. She was not sure of the need for the NIRF and urged the Assembly to look at priorities. MG Mun Crawford phoned. She said fishing was poor, and she felt residents could not afford an increase. Pave Sundberq opposed the increase. As a Monashka Bay resident, he did not receive nor want services. More money was spent but his lifestyle was not improved. Mike Anderson phoned in opposition. He felt the burden was not spread fairly. With his construction business, he paid a tremendous amount of property taxes. He heard good comments and agreed that most of the money went to the hospital. Also, he said, the NIRF site work was twice as much as anticipated. He could not see the economy improving and did not want to shoulder more than his share of the burden. He encouraged other alternatives for revenues. Presiding Officer Heinrichs closed the public hearing at 9:48 p.m. for a ten minute recess. Following the recess, Presiding Officer Heinrichs re- opened the public hearing. Lee Russell phoned. He circulated the petition and almost without exception everyone wanted to sign it. He was also in construction and paid high taxes. He appreciated the Assembly's time and vote. Jeanne Grnthe phoned in opposition to the 2.5 mill increase. She did not want to leave Kodiak and did not oppose some tax increase because education and Regular Assembly Meeting June 5, 1997 Volume A. _ Page 244 the hospital were important. She was concerned about future tax increases. Many of her friends moved because they could not afford to live in Kodiak. Jack Hill phoned in opposition. The population was maxed, therefore the burden would be on individuals the town depended on. Tom Siegrist phoned. He felt it was a hefty tax increase, and there was a need to cut costs. Tver Malntin telephoned to commend the Assembly for a fine job on a tough decision. Dell_s rksmn phoned. He said this was a 37 percent increase that was too high at one time and suggested slowly increasing taxes to allow people time to adjust. Phil Fprri Sr. phoned. He remembered when there was a head tax to fund schools, and he felt that was a good idea that would remove some of the burden on property owners. Presiding Officer Heinrichs closed the public hearing. Assemblymember Johnson felt there were misconceptions about the NIRF and the hospital. Presiding Officer Heinrichs asked the Mayor to clarify special funds and the extent the mill rate was affected by the hospital, NIRF, and dust abatement. Mayor Selby was appalled because neither the NIRF nor the hospital were dependent upon tax revenues. Included in the mill levy was the $780,000 bond payment on the $9.5 million hospital bond approved by the voters. The $700,000 energy loan at the hospital did not affect the mill levy as it was an expense in the lease with Providence. There was $2 million in revenue from the Providence lease with the surplus going into a reserve fund for maintenance and repairs. It was clear in the lease with Providence that repairs over $10,000 were the Borough's responsibility and anything under $10,000 was Providence's responsibility. He said no general fund monies were used to build the hospital and all contracts had Assembly approval. The Mayor had no authority to move money without Assembly approval. Regular Assembly Meeting June 5, 1997 Volume XXR Page 245 He said if the NIRF was not built, the mill levy would not be impacted. He considered the NIRF a key element for the economic base of the community because without the NIRF, there would be no fisheries research in Kodiak. If the NIRF was not built, the $6 million received from the sale of Shuyak Island would be returned to the EXXON Valdez Council. The facilities fund would have a corpus of $4 million this year with the payment on the $14 million sale of Shuyak Island. Of the $200,000 interest earnings, 15% would be placed in the corpus and 85% for capital projects. The fund was invested in the purchase of revenue bonds at a 7% interest rate. Of the $20.7 million construction expense for NIRF, $3 million was from the state, $465,000 and an additional $3 million from the federal government, $6 million from the sale of Shuyak Island revenue bonds, and interest earnings. In addition, $200,000 each year for building maintenance would be set aside from tenant revenues. At no time would there be a cost to residents and no impact to the mill levy. The NIRF would be a significant economic base. Mayor Selby said the Borough landfill had a 30 year life expectancy. Funds were received from the state for leachate control and fees paid for operations. All special revenue funds were self- supporting by fees with a small fund balance for unexpected expenses. There was no cost to the general fund where the mill levy was deposited. Responding to Assemblymember Milligan, Mayor Selby explained the total sum of the property and severance tax income was $7.54 million. Although boats were assessed at $230 million, there was a minimum tax placed on boats because a severance tax was more equitable in that fish catches were taxed. Assemblymember Milligan contended the severance tax was a good tax. The severance tax was the only way to tax the crew on boats because most owners usually took the tax "off the top ". His concern was the perception about the education budget because the mill levy tracked consistently with the local contribution to schools. Mayor Selby continued to respond to inquiries by Assemblymember Milligan. Bond ratings would probably not be maintained if the savings account was drawn down. The only fund that can be used for education Regular Assembly Meeting June 5, 1997 Volume A., Page 246 was the genera-1 fund as special revenue funds can not be used to reduce the mill levy. He alerted the assembly two years ago when the fund balance was drawn down to fund education that increases in the mill levy would be necessary. Assemblymember Abell could not support a mill levy increase of 2.5. He understood the Borough staff was dong a good job but the population had not increased, retail sales were down, and the severance tax decreased business's profits. He knew the Borough had a savings account that should be used before raising the mill levy. Mayor Selby said the savings could be spent but that would postpone the inevitable need for mill levy increases in the following years. He explained how the facilities fund would aid in funding capital projects and maintenance. Assemblymember Bonney supported the school district budget. Teachers were fair to the community during negotiations. He opposed the Borough and Mental Health Center budgets. He did not agree that the Borough lost five positions. He saw a $620,000 loss at the Mental Health Center that the community could not pay for. He would not support a bureaucracy that allowed a $620,000 loss in one year. He questioned how higher taxes could be justified when some did not have enough money to feed their children. He saw no effort to decrease spending. Assemblymember Johnson favored the motion. He appreciated receiving services and contended that taxes in Kodiak were lower than anywhere else in the United States. Mandated services included education, planning and zoning, assessment, and area -wide services adopted by the community. This increase was a bare minimum and was necessary due to a decline of $25,640 in municipal assistance and $19,859 in revenue sharing from the state, increases in the cost of living, taxes that were not raised in the last three years, and the school district's compromise on support services and maintenance over the last ten years in order to pay salaries and program services. He has been in Kodiak since 1938 and has seen it grow continually. During the boom, opportunists were more interested in what they could make than building a community, taking their earned money with them when they left. The boom ended and much has changed. People now want to make Kodiak their home. Many Regular Assembly Meeting June 5, 1997 Volume XX I Page 247 people become volunteers to make Kodiak a better place. Community services, school and health care systems have grown. Pride in Kodiak means paying a little more to maintain the services built over the years. The level of services need maintaining to make up for the losses in the state and help the school district replace services forced to cut. Kodiak was worth it. In response to Assemblymember Milligan, Mayor Selby explained the funding for the school district in that the additional funds needed over last year's funds was $1,924,640, that equaled to 2.5 mills. Mayor Selby said there was a reasonable chance of no increase next year but that was dependent on the legislature. After that, it would depend on the school district budget. There might be a different foundation formula which would change everything. Proposed in the budget for the Mental Health Center was $249,000. Mayor Selby said the Borough received a $2 million cash payment when the hospital was transferred to Providence. The funds were placed in the construction fund. He agreed with Assemblymember Milligan that a $20,000,000 hospital had been built with a one mill bond sale. Assemblymember W. Stevens saw many state budget cuts and no increases in the foundation formula. He saw a need to fundamentally change the way education was delivered and control the rising cost of education. ABELL, seconded by MILLIGAN moved to amend Ordinance No. 97 -10 by reducing the 2.5 mill levy increase to a 1.25 mill levy increase for a total of 8 mills. Assemblymember Abell explained the amendment was an incentive for government to reduce expenditures. Assemblymember G. Stevens said it was clear that 2.5 mills could not be taken solely from the Borough budget so he supported an increase of 1.25 mills. Assemblymember Milligan contended that the budget would not balance with a 1.25 mill levy increase. Regular Assembly Meeting June 5, 1997 Volume _ Page 248 Assemblymember G. Stevens said it was difficult to attempt to balance the budget at a public meeting and suggested a special meeting where Mayor Selby would present a balanced budget with a 1.25 mill levy increase. Assemblymember Johnson spoke against the amendment. He felt a 2.5 mill levy increase was barely adequate. Presiding Officer Heinrichs was concerned about the length of the agenda and the lateness of the hour. At 11:20 p.m. per Borough code, a motion was needed to extend the time of the meeting. W. STEVENS, seconded by G. STEVENS VOTE ON MOTION TO EXTEND moved to extend the the meeting to midnight. MOTION CARRIED Unanimous voice vote Assemblymember Bonney saw no attempt to cut the budget. Residents could not be asked for money they did not have. He disagreed that five positions were eliminated. Responding to Presiding Officer Heinrichs, Mayor Selby said the attorney's opinion was clear that the school district funding was locked in by resolution at $8.5 million. With a total budget of $10.5 million, that meant the approximately $1 million reduction would be taken from the remaining $2 million that funded Borough operations. Mayor Selby said the number of Borough employees, excluding Mental Health Center employees, were cut from 34 to 32. Assemblymember Milligan felt some would like to see government employees suffer. He spoke against the amendment as he felt the Borough was managed well. Assemblymember Johnson agreed that a mill increase would be painful; however, he knew Kodiak's mill rate was lower than most areas. He hoped for strong attendance at the Town Meeting that would focus on education. He opposed the amendment. Regular Assembly Meeting June 5, 1997 Volume XXR Page 249 VOTE ON MOTION TO AMEND Ayes: Abell, Bonney, G. Stevens Noes: Johnson, Milligan, W. Stevens, Heinrichs MOTION FAILED 3 Ayes, 4 Noes Assemblymember Milligan heard good points made. He thanked Assemblymembers Abell and Bonney for their input. The Borough was well managed as was evident with the finance awards received. The hospital would keep the community strong. The total revenues to be received was unknown, so the economy would go through highs and lows. He thought Providence should manage the Mental Health Center. He felt the NIRF was beneficial to fishermen and the community. G. STEVENS, seconded by MILLIGAN Regular Assembly Meeting June 5, 1997 moved to amend the Kodiak Island Borough budget by reducing the total mills from 9.25 to 8.75. Assemblymember G. Stevens explained this was an attempt to reduce the budget. Assemblymember Bonney felt the budget had a lot of pork. The industry that supported the community was hurt because of the message that the Assembly was not concerned about the economic plight of fishermen. He saw no attempt to reduce the budget. Assemblymember Johnson saw no pork in the budget. The Mental Health Center would be subsidized, but the hospital was once subsidized and now made money. He realized the need for changes at the Center. Assemblymember Abell supported the amendment because it was a reduction. In response to Presiding Officer Heinrichs, Mayor Selby said .5 mills equated to approximately $400,000 of the general fund. This amendment would reduce the $2 million Borough operations budget by approximately 20 %. There was general discussion that when fishing was poor, the severance tax was lower. Mayor Selby said Volume X..0 Page 250 the fund balance and /or expenses would be reduced with this amendment. VOTE ON MOTION TO AMEND Ayes: Noes: VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED Assemblymember Bonney institute a tax cap. MESSAGES FROM THE BOROUGH MAYOR Regular Assembly Meeting June 5, 1997 Bonney, G. Stevens, Abell Johnson, Milligan, W. Stevens, Heinrichs MOTION FAILED 3 Ayes, 4 Noes Assemblymember Bonney said the Assembly was out of touch with Kodiak, and the budget was unjust. Assemblymember Abell said the school district was asked to reduce expenses but the Borough had not reduced expenses. It was not right to raise taxes when funds were in a savings account. Johnson, Milligan, W. Stevens, Heinrichs G. Stevens, Abell, Bonney 4 Ayes, 3 Noes said he would actively seek to Mayor Selby said it was tentatively scheduled for the Assembly to travel to Afognak Island on July 25. He said test sites were bored for the NIRF. This was part of the McCarthy SDL contract. A rock wall was moved because it was not stable and there was a need for an extension. In response to Assemblymember Abell, Mayor Selby said the cost of the rock extension would come out of the original contract with McCarthy. He received a thank you from Bill Jones because the Alaska room at the library was complete. MESSAGES FROM MAYOR Volume 7DIII Page 251 He would continue to chair the Impact Assistance Committee. In response to Assemblymember Milligan, Mayor Selby said it was possible that Alaskan canned pink salmon could be used in foreign aid packages to North Korea. Senator Stevens was working on the project. OLD BUSINESS None. NEW BUSINESS OLD BUSINESS NEW BUSINESS A. AWARDS AWARDS 1. Contract No. 97 -25 Kodiak Island Borough CONTRACT School District Special Services Offices/ NO. 97 -25 Kodiak Island Borough Building HVAC System. G. STEVENS, moved to award Contract seconded by W. STEVENS No. 97 -25 to Hermanson Corporation of Kent, Washington in an amount not to exceed $15,800. Mayor Selby said the space was formerly used by KMXT. The space would be remodeled for the school district special services, where a HVAC system was necessary. Assemblymember G. Stevens noted the low bid. VOTE ON MOTION TO AWARD Ayes: Milligan, G. Stevens W. Stevens, Abell, Bonney, Johnson, Heinrichs Noes: None MOTION CARRIED Unanimous B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 97 -22 Urging Governor RESOLUTION Knowles to Appoint Two Members of the NO. 97 -22 Kodiak Business Community to the Alaska Aerospace Development Corporation Board of Directors. Regular Assembly Meeting June 5, 1997 Volume )1.2. ,i Page 252 Presented for consideration was Resolution No. 97 -22 that, if adopted, urged Governor Knowles to appoint at least two members of the Kodiak business community, from the list submitted by the Kodiak Chamber of Commerce, to the Alaska Aerospace Development Corporation Board of Directors. Resolution 97 -22 was adopted under "Consent Agenda ". C. ORDINANCES FOR INTRODUCTION 1. Ordinance No. 96 -10C Amending Ordinance No. 96 -10 Fiscal Year Budget for 1997 to Reflect Year -end Adjustments. Presented for consideration was Ordinance No. 96 -10C that, if adopted, amended the fiscal year 1997 budget to accept funds for the Child Care Assistance Program, the Mental Health Center, and the Coastal Management Program. Ordinance No. 96 -10C was forwarded to public hearing on June 19, 1997 under "Consent Agenda ". 2. Ordinance No. 97 -08 Increasing the Kodiak Island School District Board of Education from Five to Seven Members and Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel to Add Chapter 2.50 Board of Education. Presented for consideration was Ordinance No. 97 -08 that, if adopted, increased the Kodiak Island Borough School Board to seven members, with the concurrence of the School Board, and amended KIBC Title 2 to add chapter 2.50 Board of Education. MILLIGAN, seconded by JOHNSON moved to adopt Ordinance No. 97 -08 in first reading to advance to public hearing on June 19, 1997. Mayor Selby deferred to Assemblymember Milligan as the author of the ordinance. Assemblymember Milligan explained that the School Board would have to concur with the increase. He felt a seven member board would serve the community well by allowing more community members to serve. Regular Assembly Meeting June 5, 1997 ORDINANCES FOR INTRODUCTION ORDINANCE NO. 96 -10C ORDINANCE NO 96 -08 Volume JOOI Page 253 Assemblymember Abell would not support the ordinance. Assemblymember G. Stevens saw no compelling reason to increase the school board. He felt there was no way to ensure minority representation. Assemblymember Bonney agreed with Assemblymember Abell. Assemblymember W. Stevens said school board member Joe Floyd was at a previous meeting where this was discussed. He wanted the community to have an opportunity to speak at the public hearing. Assemblymember Johnson felt it was good to increase public input and to potentially give minorities an opportunity to serve. VOTE ON MOTION TO ADVANCE Ayes: Noes: 1. W. STEVENS, seconded by MILLIGAN Regular Assembly Meeting June 5, 1997 W. Stevens, Johnson, Milligan, Heinrichs G. Stevens, Abell, Bonney MOTION CARRIED 4 Ayes, 3 Noes At 11:59 p.m. per Borough code, a motion was needed to extend the time of the meeting. W. STEVENS, moved to extend the seconded by JOHNSON meeting to 12:30 p.m. VOTE ON MOTION MOTION CARRIED Voice vote D. OTHER ITEMS Appointments to the Kodiak Launch Complex Local Advisory Committee. moved to ratify the appointments of: Kathleen Burton, Meldonna Cody, Gabrielle LeDoux, Tom Hendel, Mike Machulsky, Earl Mickelsen, Elizabeth Odell, Arthur OTHER ITEMS APPOINTMENTS TO KODIAK LAUNCH COMPLEX LOCAL ADVISORY COMMITTEE Volume X.... Page 254 Mayor Selby thanked the 30 individuals who submitted their names. Pat Ladner, AADC Executive Director, provided information on the individuals. Mayor Selby saw the chance for others to be involved in the future. In response to Assemblymember G. Stevens, Mayor Selby said there were no specific agency seats. Assemblymember Milligan understood the Committee was advisory and had no bylaws. In response to Assemblymember G. Stevens, Mayor Selby said the Assembly and City Council representatives were ad hoc members who would relay information to the Assembly and Council. VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous Schultz, Paula Stinson, Everett Stone, and Jim Van Atta to the Kodiak Launch Complex Advisory Committee. W. Stevens, Abell, Bonney, Johnson, Milligan, G. Stevens, Heinrichs INFORMATIONAL INFORMATIONAL MATERIALS (No action required) MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. MIS Steering Committee Regular Meeting of April 9, 1997. 2. Providence Kodiak Island Medical Center Advisory Board Meeting of April 16, 1997. 3. Mental Health Center Advisory Board Meeting of April 28, 1997. 4. Service District No. 1 Board Meeting of March 18, 1997. B. REPORTS REPORTS 1. Kodiak Island Borough May 1997 Financial Report. Regular Assembly Meeting June 5, 1997 Volume 3OCII Page 255 2. Kodiak Island Borough School District March 1997 Financial Report. 3. Mental Health Center Director's Report of May 27, 1997. C. OTHER OTHER 1. Kodiak Island Borough School District Board of Education Regular Meeting of April 28 and Special Meetings of May 5 and May 19, 1997 Summary Reports. CITIZENS' COMMENTS Steve Hobgood phoned. As parent of the school board student body representative, he suggested the Coast Guard representative on the school board be a voting member. Betty Walters thanked the Assembly. She was pleased to hear support for education. Betty Odell phoned to say that permanent fund checks paid for college credits or groceries, so there was no extra money to pay extra taxes. She was disappointed about the decision. Diana Buffington was disappointed with the Assembly. She expected to see angry residents when tax bills were received. Permanent fund checks were used for retirement or college tuition. She said Alaskans for Tax Reform was an education and advocacy group that was a watch dog of the cost of government. mom Dooley appreciated the process. He saw a sleeping giant being awakened and encouraged residents to be involved and make changes. ASSEMBLYMEMBER COMMENTS ASSEMBLYMEMBER COMMENTS Assemblymember W. Stevens did not discount the public testimony. The Assembly had worked on the budget for three months. He encouraged people to be involved on boards and committees. He said the Assembly would rally to support anyone who wanted to serve on the Alaska Aerospace Development Corporation Board. Assemblymember Milligan did not take the budget lightly. He thanked his son Isaac for time not spent with his father. Regular Assembly Meeting June 5, 1997 CITIZENS' COMMENTS Volume ?La Page 256 7 Assemblymember Bonney was ashamed to be a member of the Assembly. He would work with tax reformers to place a question on the ballot. He felt the Assembly had turned their backs on the fishing community and caused a disservice to the community in general. Assemblymember G. Stevens said there was mis- information on the possibility of a tax cap. He spoke with the borough clerk and understood that the Municipality of Anchorage needed a 60 percent voter approval to increase a sales tax, actually three - fifths of the voters, and in Fairbanks they have a tax cap that needed to be renewed every two years that does not require three - fifths of the voters. Assemblymember Abell thought of capping Borough employee's step increases. He wanted to reasonably trim expenses and asked that people be involved. Presiding Officer Heinrichs had been in the uncomfortable position of casting the deciding vote on the budget. He said a prior assembly chose not to increase the mill rate but spending continued, and now it was time to pay the bill. He did not support decreasing services; however, he supported a tax decrease. He related the need to pay attention to the Mental Health Center budget. He felt the Center was an expense that the assembly agreed to take on. Presiding Officer Heinrichs announced the Assembly would meet in a special meeting Tuesday, June 10 at 7:30 p.m. in the assembly chambers, a work session Thursday, June 12 at 7:30 p.m. in the borough conference room, the joint assembly and city council work session on Tuesday, June 17 at 7:30 p.m. in the borough conference room, and a regular meeting on Thursday, June 19 at 7:30 p.m. in the assembly chambers. There being no further business to come before the Assembly, the meeting adjourned at 12:22 a.m. r N, vl Gcev Robin Heinrichs ATTEST: Presiding Officer i/72 KCB — , n h Donna F. Smith, CMC /AAE Borough Clerk Regular Assembly Meeting June 5, 1997 Adapted: 07/17/97 ADJOURNMENT Volume nn Page 757