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1997-06-19 Regular MeetingA regular meeting of the Kodiak Island Borough Assembly was held June 19, 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. KODIAK ISLAND BOROUGH Regular Assembly Meeting June 19, 1997 The invocation was given by Pastor David Nelson of St. Paul's Lutheran Church, followed by the Pledge of Allegiance. There were present: Robin Heinrichs, Presiding Tom Abell Tuck Bonney Mike Milligan Gary Stevens Wayne Stevens absent: Bob Johnson comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC /AAE, Clerk Judi Nielsen, Deputy Clerk Assemblymember Johnson was out of town and asked to be excused. G. STEVENS, moved to excuse seconded by W. STEVENS VOTE ON MOTION TO EXCUSE MOTION CARRIED APPROVAL OP AGENDA W. STEVENS, seconded by MILLIGAN G. STEVENS, seconded by W. STEVENS Regular Assembly Meeting June 19, 1997 Assemblymember Johnson. Unanimous voice vote moved to approve the agenda. moved to amend the agenda by removing item 12.A.3. Contract No. 97 - 29 Lobbying Services Before the Alaska State Legislature and Administration and to REGULAR MEETING ROLL CALL APPROVAL OF AGENDA Volume XXIJ Page 263 renumber items accordingly. Assemblymember G. Stevens had no objection to contracting with the current lobbyist; however, he felt it was important to work with the City council for a joint effort on lobbying. Presiding Officer Heinrichs said the council would hold discussion on the subject on June 21. In response to Assemblymember Milligan, Mayor Selby said he did not envision a problem because the current contract would expire on June 30, allowing time for rescheduling to July 3. VOTE ON MOTION TO AMEND MOTION CARRIED W. STEVENS, seconded by MILLIGAN G. STEVENS, seconded by W. STEVENS VOTE ON MOTION TO APPROVE MOTION CARRIED AWARDS AND PRESENTATIONS None. Regular Assembly Meeting June 19, 1997 Unanimous voice vote moved to amend the agenda by adding Contract No. 97 -33 Fire Protection Agreement for the Kodiak Island Borough Airport Fire Protection District as the final item under 12.A. Contracts. VOTE ON MOTION TO AMEND MOTION CARRIED Unanimous voice vote VOTE ON MOTION TO APPROVE AS AMENDED MOTION CARRIED Unanimous voice vote APPROVAL OF MINUTES APPROVAL OF MINUTES A. K.I.B. Assembly Meeting of May 1 and Special Meeting of May 6, 1997. moved to approve the minutes of May 1 and May 6, 1997. Unanimous voice vote AWARDS AND PRESENTATION Volume JOOI Page 264 CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing. Diana R'ffingtnn, Alaskans for Tax Reform representative, reported that there were over 700 signatures on the leverage petition. There was still anger and frustration about taxes. A group was formed with a common goal of controlling taxes. Jean Barber, Womens Bay Service Area resident, noted that A -K Construction and Dave Conrad, service area chair, worked together to provide wonderful Bells Flats roads. David Glamann phoned. He thought the majority of the Assembly was not seriously listening to the public's concern on tax issues and the rocket launch facility, to name a few. He asked how much of the tax increase was going to the school district. Mayor Selby replied that basically the entire increase was attributable to the school district, because the funding received from the Borough increased more that 2.5 mills although the mill levy did not. B. Items Other Than Those Appearing on the Agenda phis Cline, hospital administrator, reported that the federal and state surveyor's inspection of the long- term care unit administration resulted in a glowing report. He thanked the Garden Club for improving the grounds with their expertise and volunteered labor. The hospital was eleven months through the fiscal year and continued to be successful. There were two months showing losses -- February and October. He anticipated complete occupancy of the old building in September, following the asbestos removal. Frank Peterson phoned to inquire about the local, state, and federal revenue sources and expenditures for the villages. Mayor Selby asked him to pick up a copy of the budget at the Borough building. He said there was $10.6 million in the general fund of tax revenues from all sources, with $40 -50 million in all funds. Since the Borough's expenses were island -wide, it would take time to break out the villages' share. The education expenditure was about $22.5 million and that was broken out by schools. Regular Assembly Meeting June 19, 1997 CITIZENS' COMMENTS Volume XXII Page 265 COMMITTEE REPORTS Assemblymember Milligan said the Hospital Advisory Board's main topic was INTALA -- regulations for hospitals to accept all patients in an emergency- -and the impact on local hospitals. He thanked Marie Rice and Leroy Blondin for their personal time spent on the landscaping. He noted the entrance to the hospital was at the second floor level. Assemblymember W. Stevens attended meetings in Anchorage as representative to the Providence Service Area Board (a board of directors for all Providence holdings in Alaska). The process was interesting and lengthy. He was glad to bring Kodiak's perspective to the Board. He would continue to bring updates. Assemblymember G. Stevens reported that the Planning and Zoning Commission's major issue, the decision on the Anton Larson Bay gravel pit, was postponed. He believed the Commission's decision would be appealed. PUBLIC HEARING PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. 1. Ordinance No. 96 -10C Amending Ordinance ORDINANCE No. 96 -10 Fiscal Year Budget for 1997 to Reflect NO. 96 -10C 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. W. STEVENS, moved to adopt seconded by BONNEY Ordinance No. 96 -10C. W. STEVENS, seconded by G. STEVENS VOTE ON MOTION TO AMEND Ayes: Noes: Absent: Regular Assembly Meeting June 19, 1997 moved to amend Ordinance No. 96 -10C by substitution. Abell, Bonney, Milligan, G. Stevens, W. Stevens, Heinrichs None Johnson COMMITTEE REPORTS Volume XXII Page 266 MOTION CARRIED- Unanimous Assemblymember Milligan asked Mayor Selby about the process for last year's budget. Mayor Selby said a year ago the budget was adopted for the current fiscal year. As with any budget, it was based on the best projections. The normal process was to prepare the budget and then present to the Assembly any mid -year budget adjustments and a final budget adjustment near the end of the year. Adjustments during the year were usually grant receipts. He defined the budget adjustment amounts. In response to Assemblymember Bonney, Mayor Selby said the total amount spent on the hospital remodel, after the adjustment in the ordinance was approved, would be $23,486,578. The remodel was estimated at $2 million but actual cost was $3 million with asbestos abatement and other add -ons. The original bond was $9.5 million in 1993; presently, there was almost four years of debt service with about $8 million remaining. Interim financing of $2 million from debt service was repaid by the $2 million for hospital construction in the Providence lease agreement. The $1 million remaining would be in the hospital enterprise fund for hospital repairs and equipment replacement. The hospital was fully funded with a $3.9 million energy loan that would be paid with proceeds from the Providence lease. There was $2.8 million from the old major maintenance fund and $1.5 million from the enterprise fund that would be used for the hospital construction. The only money that was not hospital money was the $2.8 million from the maintenance fund. The $2.8 million was transferred, by approval of the assembly, only after assurance that Shuyak Island had been sold for $36,000,000. The $1.5 million in the enterprise fund would not be there if the hospital was not a reality. Although Assemblymember Bonney felt the $1.5 million could be used anyway the Assembly desired, Mayor Selby said all enterprise funds were committed to the fund that generated it; therefore, hospital enterprise funds could only be used for the hospital. Mayor Selby explained that Fund 410 contained the explanation of the hospital project. Presiding Officer Heinrichs opened the public hearing. Scott Arndt thought that with $1.2 million in the hospital fund, there was no need to transfer $730,000 Regular Assembly Meeting June 19, 1997 Volume XXII Page 267 for bonded indebtedness as the fund needed to be spent down. He was not convinced that $1.5 million to Fund 425 from Fund 540 would complete the work on the hospital. He questioned when the public would see the total cost for the hospital. Jean Barber also wanted to know how the hospital was funded. David rlamman phoned. He understood the 2.5 mill levy increase was for the school district; however, now he was hearing that 1 mill was for the school district and 1.5 mills was for the hospital. Mayor Selby assured him that the 2.5 mill levy increase was required to fund the school district. Presiding Officer Heinrichs closed the public hearing. Assemblymember Milligan gave a history of revenues for the hospital construction addition /remodel. He felt hospital revenues should not be used elsewhere in the community, because the hospital expenditures were technology related. Responding to Assemblymember Bonney, Mayor Selby reiterated that enterprise funds were self- supporting funds and any revenues from the funds had to be used within the funds. Enterprise funds could not be transferred to the general fund. Mayor Selby reiterated that $21.5 would be spent on the hospital construction project. Responding to Assemblymember Abell, Mayor Selby said there would be a split with Providence on the first $600,000 of revenue in excess of expenses. That would first occur in the fiscal year 1999 budget. Assemblymember Milligan agreed with Assemblymember Abell's statement that retiring bonds would be a savings to the taxpayer and mentioned that paying the energy loan would be an expenditure reduction. He remembered that foundation formula funds would have been lost if the North Star Elementary School general bond had not been approved by the voters. He said there was no advantage to carry debt on the hospital. He pointed out the revenues from the lease of the hospital. Mayor Selby reiterated that funds were structured to not raise taxes within the next five years. If the fund balance was spent, there would be no interest Regular Assembly Meeting June 19, 1997 Volume 70C11 Page 268 earnings income. When the bonds were sold, the commitment was to set aside one year's worth of minimum payment funds in the event of a bad year. Ratings need to be kept high to get low interest rating on bond debt. The discussion disappointed Assemblymember Bonney; he felt it was viable to cut spending before raising taxes. Assemblymember G. Stevens clarified that this was not a new budget, but a final amendment to the previous year's budget. VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous Bonney, Milligan G. Stevens, W. Stevens, Abell, Heinrichs After a ten minute recess at 9:07 p.m., Presiding Officer Heinrichs reconvened the meeting. 2. Ordinance No. 97 -08 Increasing the Kodiak Island ORDINANCE School District Board of Education from Five to NO. 97 -08 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, moved to adopt seconded by W. STEVENS Ordinance No. 97 -08. Mayor Selby said Assemblymembers Milligan and W. Stevens introduced the ordinance. He added that state statutes allowed the process for the Assembly to increase the number of members on the school board with the concurrence of the school board. Assemblymember Milligan said the timing of the budget process was dictated by state statutes. This year the Assembly received the budget late and that left a Regular Assembly Meeting June 19, 1997 Volume XXII Page 269 difficult decision to the last minute. This would allow people the opportunity to run for the school board to spread the power and workload over more members. Also, four members would be required to make a decision. A broader range of people would serve and ultimately give more power to the taxpayers. Assemblymember Abell had voted against advancing the ordinance to public hearing; but since then, he had not heard anyone speak against the seven member board. Presiding Officer Heinrichs opened the public hearing. Jeff Peterson, Old Harbor resident, phoned. He thought it was a great idea that would not increase costs but would help broaden the view of the board. He hoped to have representatives from the villages to bring the village perspective to the board. Dorinda Kewan, Port Lions Advisory School Board member, supported the ordinance. She felt village representation was long- overdue, because villages were remote and education standards were different. She felt the ordinance should reference all of the Kodiak Island Borough. She thanked the Assembly for funding the new Port Lions School basketball court that was well used and greatly appreciated. Diana Buffington phoned. She did not believe an increase would create cultural diversity; however, two additional members would allow two more minds to review the budget and find avenues to cut expenses. Denise May, Port Lions resident, attended the meeting in person to stress the importance of the increase. This gave rural people the opportunity to run for the board. She felt that rural representation should be mandatory because their budgets were different than Kodiak school budgets. Lisa Thomsen, Port Lions Advisory School Board member, agreed the expansion was long- overdue and would create a stronger Board. She wanted one seat designated for a rural representative. She said villages had unique education challenges that only village residents understood. Torna Arndt phoned. She saw no need for a seven member board that would increase expenses. She saw many people living in low -cost housing and not paying Regular Assembly Meeting June 19, 1997 Volume XXII Page 270 taxes. Also, the Native Association did not pay taxes. Travel for a village representative would be high and cost the taxpayers. She felt board members should be property owners. Cheryl i,ukin, Port Lions resident, said that as a non - Native and a property owner, she wanted to increase the board to seven to allow village representation. Even if the villages were not included, a seven member board allowed a broader decision - making body. She referenced School Board member Norm Wooten and hoped for more members with great ideas for the schools. Betty Odell, Chiniak School Advisory Board member, phoned. She said the Board was in favor of the increase because Chiniak residents would have an opportunity to serve. She agreed with the comments of the village residents. Denise May said this was not just a rural issue. Jean Barber, School Board member, still opposed the increase. She felt the assembly should have more input in the budget process. She agreed that the budget was late this year but hoped it would be on time next year. She understood the desire for village representation; however, that would open the need for Coast Guard, Filipino, Black, and Taiwanese representation, and there was a point where that had to stop. The school board worked well together for the children. Mary Glamann, City resident, phoned. She did not care what race served on the board. She wanted children to be the leaders of tomorrow. An unidentified caller was not asking for representation for a minority. Not everyone paid Borough taxes but they did pay federal income tax. Naomi K7ouda, Old Harbor resident, phoned. She felt it was not right for Ms. Barber to turn it into a racial issue; people deserved more than that type of statement. Natives were the original inhabitants and should have representation on the school board. Scott Arndt agreed with the increase. He said the school district budget was $2 million originally and now there were more students and the budget was at $22 million. The Service District No. 1 Board had increased from five to seven because of increased population. He spoke against designating seats because the need was for people to run for office at Regular Assembly Meeting June 19, 1997 Volume XIS Page 271 large. He served on the assembly with Port Lions residents and felt the benefits outweighed the increased costs. Presiding Officer Heinrichs closed the public hearing and reconvened the regular meeting. Assemblymember G. Stevens heard from many who favored the increase, and he saw no reason to object. He said anyone could run for school board or assembly. He was not sure if the increase would bring in village or minority representation. He hoped that all who spoke in favor would run for school board. G. Stevens explained that districting would not fulfill the representation the speakers wanted. Elected officials representing all of the Borough worked best. The issue was increasing the number on the school board. He thought the effort was worth a try but emphasized that one has to run to be represented. Assemblymember Milligan agreed. MILLIGAN, seconded by W. STEVENS VOTE ON MOTION TO AMEND Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous Assemblymember W. Stevens felt previous participation in school board or assembly races was not an indication of future races, particularly with tax issues. Assemblymember Abell felt that Natives were served island -wide. He hoped to enhance voter involvement. Assemblymember G. Stevens outlined that the school board had to concur with the increase. He did not see property tax as a precursor to voter rights. Regular Assembly Meeting Volume )O II Page 272 June 19, 1997 moved to amend Ordinance No. 97 -08 by replacing all references to the word "Kodiak" with the words "Kodiak Island Borough ". Milligan, G. Stevens, W. Stevens, Abell, Bonney, Heinrichs VOTE ON MOTION -TO ADOPT AS AMENDED Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous G. Stevens, W. Stevens, Abell, Bonney, Milligan, Heinrichs MESSAGES FROM MESSAGES PROM THE BOROUGH MAYOR MAYOR Mayor Selby thanked and commended the Garden Club for the significant project of landscaping the hospital. The vice -chair of the Outer Continental Shelf Committee would review the impact of funds coming back to local governments. The full policy committee drafted language expected to be introduced in January for the 1998 Congressional session. Lease Sale 149 of Cook Inlet properties was close to Kodiak and could be a potential new revenue source. The national figure of disbursement was fifty percent, so $3 million of the $5.5 million could go to the producing states. The Alaskan Congress approved of it. The Red Cross building was revamped for non - profit organization's use. Kodiak Red Cross, Kodiak Youth Services Network, and Kodiak Special Olympics would share the space and pay utility and operational costs. North Pacific Fisheries Management Council members were in Kodiak for a meeting. In- shore /off -shore allocation reauthorization and halibut charter issues would be island -wide impacts. He hoped for a quick resolution to the salmon strike as fishing was critical to the community. He referred to a previous caller that the Borough worked to provide assistance programs to the villages. Many services were provided that were potentially not recognized. He noted that Bud Cassidy, resource management officer, had worked significantly on the Ouzinkie breakwater permitting. He said Clerk Smith provided annual election training to village clerks. Regular Assembly Meeting June 19, 1997 Volume XXQ Page 273 OLD BUSINESS OLD BUSINESS Presiding Officer Heinrichs recessed the regular meeting and convened the Board of Adjustment on the appeal of a denial for a conditional use permit for a log transfer facility near the mouth of Myrtle Creek in Kalsin Bay. G. STEVENS, seconded by MILLIGAN "1. 17.67.05 A. That the value, spirit, surrounding area. Regular Assembly Meeting June 19, 1997 * * * * * * * * A. Board of Adjustment Findings of Fact Supporting the Denial of an Appeal of a Planning & Zoning Commission Decision to Deny a Conditional Use Permit to Permit a Log Transfer Facility, Including In- water Transfer of Logs, in the C- Conservation Zoning District Generally Located Within Section 6, T30S, R20W, Near the Mouth of Myrtle Creek in Kalsin Bay, Including Recommendation of Project Inconsistency with the Kodiak Island Borough Coastal Management Program. (Applicant: Leisnoi Incorporated) (Appellant: Leisnoi Incorporated) CONDITIONAL USE PERMIT moved to adopt the findings of fact supporting the May 6, 1997 Board of Adjustment denial of an appeal from Leisnoi, Incorporated of a Planning and Zoning Commission's decision to deny a conditional use permit for a log transfer facility near the mouth of Myrtle Creek in Kalsin Bay, including a recommendation of project inconsistency with the Kodiak Island Borough Coastal Management Program. Assemblymembers G. Stevens, Bonney, Milligan, G. Stevens and Abell read individual paragraphs of the findings. the conditional use will preserve character and integrity of the BOARD OF ADJUSTMENT LEISNOI INC. Volume XXR Page 274 There was overwhelming public testimony in opposition to the proposed LTF at the Planning and Zoning Commission public hearings. This testimony, for the most part, by residents of the area and users of Raisin Bay, indicates that there would be significant conflicts with traditional commercial and subsistence fisheries in Raisin Bay caused by the navigation and anchoring of log ships as well as by the near -shore operation of the log transfer facility. Letters from the Kodiak Fish and Game Advisory Committee dated November 23, 1996, from the Northwest Setnetters Association dated December 1, 1996, and from the Kodiak Seiners Association dated January 8, 1997 all strongly oppose the proposed project citing use conflicts resulting from interference with existing fisheries and concern that fishermen could be displaced from traditional fishing grounds for salmon, herring and dungeness crab. These letters also express concern about damage that might be caused to the environment and fish habitat by bark dispersal, by introduction of foreign marine organisms through ballast water discharge, by severe weather from the open northeast causing logs to disperse or otherwise impact the shallow ocean floor, and by pollutants from upland operations inadvertently or accidentally discharged into the Bay. At the public hearing in Chiniak on January 15, 1997 the thirty (30) local residents in attendance expressed unanimous opposition to the proposal based on the potential negative impacts and use conflicts (even with conditions imposed) which would change the value, spirit, character, and integrity of the Chiniak and Raisin Bay area they have come to know and identify with through years of long term residency. 17.67.05 B. That the conditional use fulfills all other requirements of this chapter pertaining to the conditional use in question. KIBC 17.67.010 allows for consideration of conditional use permits (CUP's) with the provision that conditions and safeguards can be applied to ensure compatibility with permitted principal uses and with the surrounding area in general. In this case, the concern about interference with established fisheries of log ship navigation into and out of Raisin Bay and of log raft transport between the facility and the anchored ship, to which considerable public testimony has attested, raises considerable Regular Assembly Meeting June 19, 1997 Volume )O1II Page 275 doubt about the ability of the LTF to be compatible with existing uses in the Bay. Compatibility is also brought into question by the possibility of ballast discharge from log ships from the Far East introducing non - indigenous micro- organisms into the Bay. The potential for ballast discharge to have harmful ecological effects on a marine environment has been documented in the Great Lakes as well as in Australia. The applicant has acknowledged limitations on any attempt to monitor and enforce a recommended condition that might specifically prohibit discharge of ballast water into Raisin Bay. RIBC Section 17.14.090.2 (Special District Regulations) addressing conditional uses in the 0- Conservation zoning district requires approved conditional uses to conform to specific performance standards including, in upland habitat, retention of natural vegetation coverage and drainage patterns and prevention of excessive runoff and erosion. Understanding that this project proposes to recontour the uplands to the extent that the natural existing slope of the upland site would be reversed from west to east, it is difficult to see how natural vegetation coverage will be retained and natural drainage patterns preserved. 17.67.05 C. That granting the conditional use permit will not be harmful to the public health, safety, convenience and comfort. Even though the applicant has made concessions and modifications to the project proposal since it was first introduced, navigation of a log ship in Raisin Bay and the transport of log rafts from the facility to the anchored ship, even periodically, will disrupt traditional commercial, subsistence and recreational fishing activity and therefore be harmful to the public convenience and comfort. To whatever extent movement of log ships may damage or disrupt fishing gear or boats used or stored in the Bay, public convenience and comfort, and to some extent, possibly health and safety, is compromised. If weather and tides breech the containment boom during operations, or a major storm event at high tide submerges the uplands, logs will be adrift in the Bay, potentially creating a safety concern for marine navigation and concern for recreation use and habitat value of the beaches. State regulations (6 AAC 80.130.c.10) addressing habitats requires that "...offshore areas must be Regular Assembly Meeting June 19, 1997 Volume XXII Page 276 managed as a fisheries conservation zone so as to maintain or enhance the state's sport, commercial, and subsistence fishery..." The Kodiak Island Borough Coastal Management Program ( KIBCMP), under Resource Enhancement and Protection, requires that "...maintenance and enhancement of fish, wildlife, and vegetative resources shall be a priority of the Kodiak Island Borough." (p.5 -14) The operation of a log transfer facility in Kaisin Bay, historically established as a vital commercial and subsistence fisheries habitat, is not consistent, to the extent that it conflicts with existing uses and with the objectives inherent in these directives that seek to ensure the public's access to a healthy fishery. 17.67.05 D. That sufficient setbacks, lot area, buffers or other safeguards are being provided to meet the conditions listed in subsections A through C of this section. The remoteness of the site helps to provide sufficient lot area buffers and setbacks to meet zoning district requirements on the upland area of the project. If an undisturbed sixty -six (66) foot wide buffer strip is required as a condition to be maintained between the log sort /storage yard and Noname Creek, that may ensure that runoff from excavation and fill will not find its way into the creek. However, concern has been expressed about the effectiveness of the buffer to accomplish that, and also about the lack of adequate buffers to preserve visual aesthetics between the Chiniak Highway and what is, essentially, an industrial operation. 2. CONSISTENCY WITH APPLICABLE POLICIES OF THE KIBCMP Fisheries and Seafood Processing 3. Optimum Resource Use -- Maintenance and enhancement of fisheries shall be given priority consideration over shoreline use proposals that might adversely impact fish habitat, migratory routes, and the commercial harvest of fish. The Board of Adjustment finds that consistency with this policy can not be achieved. Testimony has established that log ship navigation in Kaisin Bay and the operation of the transfer facility itself, including transportation of bundled logs from the containment boom area to the anchored ship, will disrupt long established commercial and subsistence fisheries and potentially damage gear as well as habitat. Equally problematic is achieving consistency with 6 AAC 80.130.(c)(1), which further Regular Assembly Meeting June 19, 1997 Volume XXII Page 277 requires that "...offshore areas must be managed as a fisheries conservation zone so as to maintain or enhance the state's sport, commercial, and subsistence fishery. As a result, the Board of Adjustment recommends that the State of Alaska find the proposed Log Transfer Facility inconsistent with the Kodiak Island Borough Coastal Management Program." Assemblymember Milligan said credible testimony was received from both sides. He was glad to close the issue. Presiding Officer Heinrichs questioned whether the last sentence of the first paragraph in 17.67.05C regarding weather and tides was part of the Board of Adjustment's deliberations. Assemblymember W. Stevens heard testimony related to high tides and weather conditions. Assemblymember Milligan agreed. Presiding Officer Heinrichs questioned the second paragraph of 17.67.05B because ballast water discharge was not addressed with regard to other vessels. He would be more comfortable to remove the paragraph. MILLIGAN, seconded by ABELL • Assemblymember Milligan agreed with removing the paragraph; however, he felt that ballast water discharge should be addressed by the community as a possible cause of red tide conditions. VOTE ON MOTION TO AMEND Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous VOTE ON MOTION TO ADOPT AS AMENDED Regular Assembly Meeting June 19, 1997 moved to amend the findings of fact by deleting the second paragraph under 17.67.05B. W. Stevens, Abell, Bonney, Milligan, G. Stevens, Heinrichs Volume XXII Page 278 Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous W. STEVENS, seconded by G. STEVENS There was no discussion by the Assembly. VOTE ON MOTION TO AWARD Noes: None Absent: Johnson MOTION CARRIED Unanimous Regular Assembly Meeting June 19, 1997 Abell, Bonney, Milligan, G. Stevens, W. Stevens, Heinrichs Presiding Officer Heinrichs announced that an appeal could be taken to the Superior Court for the State of Alaska within 30 days from the date on which this decision was mailed or otherwise distributed to the parties. Presiding Officer Heinrichs adjourned the Board of Adjustment and reconvened the regular meeting. NEW BUSINESS NEW BUSINESS A. AWARDS AWARDS 1. Contract No. 97 -27 Service District No. 1 CONTRACT Road Maintenance and Repairs, Snow Removal, NO. 97 -27 and Sanding Project. moved to award Contract No. 97 -27 to A -K Construction of Kodiak for the period of July 1, 1997 through June 30, 1999. Mayor Selby said this was a bi- annual contract for Service District No. 1, and the Board recommended awarding the contract to A -K Construction as the low bidder. Ayes: Bonney, Milligan, G. Stevens, W. Stevens, Abell, Heinrichs Volume XXQ Page 279 W. STEVENS, seconded by BONNEY Mayor Selby said this was a similar contract for borough facilities and school district offices. The low bidder was A -K Construction. In response to Assemblymember G. Stevens, Mayor Selby said the cost was comparable to the Borough's hourly labor costs. VOTE ON MOTION TO AWARD Ayes: 2. Contract No. 97 -28 Kodiak Island Borough CONTRACT Facilities Grading, Snow Removal, and NO. 97 -28 Sanding. Noes: None Absent: Johnson MOTION CARRIED Unanimous 3. Contract No. 97 -29 Lobbying Services Before CONTRACT the Alaska State Legislature and NO. 97 -29 Administration. This item was removed from the agenda. 4. Contract No. 97 -30 Womens Bay Road CONTRACT Maintenance and Repairs, Snow Removal, and NO. 97 -30 Sanding Project. W. STEVENS, seconded by BONNEY Mayor Selby said this contract was for the Womens Bay Service Area. A -K Construction was the low bidder and the Board recommended awarding the contract. Regular Assembly Meeting June 19, 1997 moved to award Contract No. 97 -28 to A -K Construction of Kodiak for the period of July 1, 1997 through June 30, 1999. Milligan, G. Stevens W. Stevens, Abell, Bonney, Heinrichs moved to award Contract No. 97 -30 to A -K Construction of Kodiak for the period July 1, 1997 through June 30, 1999. Volume XXQ Page 280 Responding to Presiding Officer Heinrichs, Mayor Selby said the two year contracts were reviewed annually. VOTE ON MOTION TO AWARD Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous Regular Assembly Meeting June 19, 1997 G. Stevens, W. Stevens, Abell, Bonney, Milligan, Heinrichs 5. Contract No. 97 -31 Sargent Creek Erosion CONTRACT and Flood Control Project. NO. 97 -31 BONNEY, moved to award Contract seconded by MILLIGAN No. 97 -31 to A -K Construction of Kodiak in an amount not to exceed $31,250. Mayor Selby said the Borough had to work with the ADF &G to protect the fish run. The erosion was such that the water would eventually run straight to the Womens Bay Fire Hall. He was pleased that the bids were lower than expected. Assemblymember G. Stevens thanked Bud Cassidy for taking he and Assemblymember W. Stevens to the site. He noted that the erosion affected the backyard of several homeowners and wondered if this was paid for with taxpayer's money. He asked how far the Borough would go to assist when a river threatened homeowner's property. Mayor Selby said the real risk was to approximately $1 million of Borough property that included the Womens Bay Fire Hall and the private impact was secondary. General capital project funds would be used. All future situations would be reviewed on a case -by -case basis. When Assemblymember G. Stevens said he wanted to ensure that property owners would remain responsible, Mayor Selby agreed. The Borough would help find reasonable solutions to property owner's problems without spending funds. Volume 3001 Page 281 Assemblymember G. Stevens appreciated Mr. Cassidy's solution and the fact that the Borough would not be obligated to individual property owner's liabilities. VOTE ON MOTION TO AWARD Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous G. STEVENS, seconded by MILLIGAN W. Stevens, Abell, Bonney, Milligan, G. Stevens, Heinrichs 6. Contract No. 97 -32 Economic Development CONTRACT Program Agreement. NO. 97 -32 moved to approve Contract No. 97 -32 with the Kodiak Chamber of Commerce in an amount not to exceed $33,000. Mayor Selby said this was the annual economic development contract with the Kodiak Chamber of Commerce as a joint venture with the City. He appreciated John Pfeifer's efforts toward projecting the economic future of the Borough and noted that one person from each of the six villages would be involved. That was important as the fishing industry was at a low ebb. Assemblymember W. Stevens, as the Chamber's Executive Director, would administer the contract. He did not feel he would receive any economic benefit, but he asked for a conflict of interest ruling. He added that the contract would not affect his salary. Presiding Officer Heinrichs ruled no conflict of interest with the Assembly's concurrence. VOTE ON MOTION TO APPROVE Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous Regular Assembly Meeting June 19, 1997 Abell, Bonney, Milligan, G. Stevens, W. Stevens, Heinrichs Volume XXII Page 282 7. Contract No. 97 -33 Fire Protection CONTRACT Agreement for the Kodiak Island Borough NO. 97 -33 Airport Fire Protection District. W. STEVENS, moved to approve seconded by MILLIGAN Contract No. 97 -33 with the City of Kodiak. Mayor Selby said this would provide direct fire protection to businesses near the airport. He thanked the City of Kodiak for committing as the responder of record. This would ensure that businesses could buy insurance and continue doing business with the Coast Guard. There was no discussion by the Assembly. VOTE ON MOTION TO APPROVE Ayes: Bonney, Milligan, G. Stevens, W. Stevens, Abell, Heinrichs Noes: None Absent: Johnson MOTION CARRIED Unanimous B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 95 -01C Amending Resolution RESOLUTION No. 95 -01 Adopting a Records Retention NO. 96 -01C Schedule and Central Filing System to Reflect Amendments to Various Categories and Retention Schedules. Presented for consideration was Resolution No. 95 -01C that, if adopted, amended Resolution No. 95 -01 regarding records retention schedules. G. STEVENS, moved to adopt seconded by MILLIGAN Resolution No. 95 -01C. Clerk Smith said the records coordinator was working to streamline the records by combining categories in the finance department and the clerk's office and by adding a category for Alaska Statutes. She outlined that some retention was based specifically on Alaska Statutes and not Borough code. Mayor Selby said the records program had been refined over the past ten years and continued to improve. Regular Assembly Meeting June 19, 1997 Volume XXII Page 283 L There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Milligan, G. Stevens, W. Stevens, Abell, Bonney, Heinrichs Noes: None Absent: Johnson MOTION CARRIED Unanimous 2. Resolution No. 97 -24 Urging the United RESOLUTION States Government to Include Alaskan Canned NO. 97 -24 Pink Salmon in Aid Packages to North Korea. Presented for consideration was Resolution No. 97 -24 that, if adopted, urged the United States Government to purchase Alaskan canned pink salmon to include in any food aid packages to North Korea. MILLIGAN, moved to adopt seconded by BONNEY Resolution No. 97 -24. Mayor Selby deferred to Assemblymember Milligan as the sponsor of the resolution. Assemblymember Milligan said Senator Stevens spoke of the desperate near - famine situation in North Korea but an added complication was that North Korea acquired or developed missiles that could reach sections of Alaska and would not be controlled as Iraq missiles were during Desert Storm. The aid packages would be tied to military concessions. Some canneries reacted poorly, but he felt salmon prices were so low that many would not fish this year. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: Johnson MOTION CARRIED Unanimous Regular Assembly Meeting Juno 19, 1997 G. Stevens, W. Stevens, Abell, Bonney, Milligan, Heinrichs Volume XXII Page 284 C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS Ayes: 1. Kodiak Island Borough Mental Health Center Management Review by Providence Health Systems. W. STEVENS, seconded by BONNEY Mayor Selby reported that Providence agreed to provide assistance to the State of Alaska for the management review. This was a commitment to resolve issues at the Mental Health Center. At Assemblymember Milligan's question, Mayor Selby said this was a comprehensive review of the Center's entire operation that would involve management, staff and clients. Mayor Selby added that exit interviews were conducted on all employees that left the service of the Borough. VOTE ON MOTION TO APPROVE Noes: None Absent: Johnson MOTION CARRIED Unanimous Regular Assembly Meeting June 19, 1997 moved to approve the Kodiak Island Borough Mental Health Center management review by Providence Health Systems. W. Stevens, Abell, Bonney, Milligan, G. Stevens, Heinrichs 1. Kodiak Island Borough School District Board Special Meeting of May 27, 1997. 1. Kodiak Island Borough School District Board Special Meeting Summary of May 27, 1997 and Regular Meeting Summary of May 27, 1997. ORDINANCES FOR INTRODUCTION OTHER ITEMS INFORMATIONAL INFORMATIONAL MATERIALS (No action required) MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS B. REPORTS REPORTS Volume Val Page 285 2. Kodiak Island Borough School District April 1997 Financial Report. CITIZENS' COMMENTS Jean Barber, School Board president, agreed that the Board did not deliver the budget to the Assembly on time. The $900,000 two years ago was needed because funds were not received from the state. In another two years, the school district would need an additional $2 million. She wondered why the $900,000 could not be funded from the savings account. She agreed it was good to help the North Koreans; however, she felt that would not stop the missiles. ASSEMBLYMEMBER ASSEMBLYMEMBER COMMENTS COMMENTS Assemblymember W. Stevens appreciated the Assembly's support of the economic development contract. The community litter patrol was fully staffed and busy cleaning highways and beaches with Jeff Hamer coordinating the effort. Residents could call the Chamber for litter pick up. He thanked the Borough for their support. Assemblymember Milligan saw questions as important. He thanked the Assembly for their support of the resolution which he hoped would stabilize the pink salmon market. He announced that Jessica LeGrue received an honorable mention in the Anchorage Daily News creative writing contest. This was Jessica's second honorable mention in two years and that was an honor to the community. Assemblymember Bonney said questions were needed. His research indicated that taxes were not raised to support the hospital. He was denied access to the actual wages paid to Borough employees that he felt should be public. He said the policy was wrong and he would look for a change. He wanted open access as a show that nothing was being hidden. Assemblymember G. Stevens agreed with public access to Borough employee's salaries although he was embarrassed when University of Alaska salaries were published. He wanted an opportunity to discuss the Mental Health Center issue with the Mayor. At his question, Clerk Smith said executive sessions had to be advertised. Following general discussion, an executive session was scheduled after the June 26 work session to discuss Mental Health Center financial issues. Regular Assembly Meeting June 19, 1997 CITIZEN'S COMMENTS Volume XXII Page 286 Assemblymember G. Stevens said he traveled to the potential land sale area at Sargent Creek. In response to inquiries, Mayor Selby said the village population was just over 1,000, so districting would be difficult. Clerk Smith said the redistricting question was on the ballot every ten years after the federal census. Assemblymember Abell changed his vote on the school board ordinance because many residents spoke to him in favor. He suggested people voice their opinions to the School Board. Presiding Officer Heinrichs reminded the community that summer school was in session and to acknowledge school buses. He announced the assembly would meet in a work session Thursday, June 26, at 7:30 pm in the borough conference room and a regular meeting on Thursday, July 3, at 7:30 pm in the assembly chambers. There being no further business to come before the ADJOURNMENT Assembly, the meeting adjourned at 11:30 p.m. ATTEST: / 1 � ./ Donna F. Smith, CMC /AAE Borough Clerk Regular Assembly Meeting June 19, 1997 i. % tin � // La1) , & t/ Robin Heinrichs Presiding Officer Approved: 07/17/97 Volume XXII Page 287