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1997-07-17 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting July 17, 1997 A re•ular meeting of the Kodiak Island Borough • Assembly was he • u y , 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 Tuck Bonney Bob Johnson (arrived 7:34 p.m. Mike Milligan (arrived 7:34 p.m.) Wayne Stevens absent: Gary Stevens comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC /AAE, Clerk Judi Nielsen CMC, Deputy Clerk Linda Freed, Community Development Director Assemblymember Gary Stevens was out of town and asked to be excused. W. STEVENS, seconded by ABELL VOTE ON MOTION TO EXCUSE MOTION CARRIED APPROVAL OF AGENDA W. STEVENS, seconded by BONNEY VOTE ON MOTION TO APPROVE MOTION CARRIED Unanimous voice vote Regular Assembly Meeting July 17, 1997 moved to excuse Assemblymembers Gary Stevens, Mike Milligan, and Bob Johnson. Unanimous voice vote moved to approve the agenda. REGULAR MEETING ROLL CALL APPROVAL OF AGENDA Volume XXIII Page 15 Assemblymembers Johnson and Milligan arrived at 7:34 p.m. APPROVAL OF MINUTES A. K.I.B. Assembly Regular Meetings of June 5 and 19, and Special Meetings of June 10 and 26, 1997. Assemblymember Milligan said he thought the spelling of Naomi Clouda's name in the June 19 minutes was incorrect. MILLIGAN, seconded by W. STEVENS Regular Assembly Meeting July 17, 1997 moved to approve the minutes of June 5, 10, 19, and 26, 1997. Presiding Officer Heinrichs, referring to the June 5 minutes, said his question about decreasing the mill levy and Mayor Selby's response were not listed on page 13, and his reference to the amendment reducing the budget by 20% on page 14 was incorrect. He said Mayor Selby gave a breakdown of funding for the hospital at the June 19 meeting, and he hoped to have that included on page 5 of the minutes. APPROVAL OF MINUTES The clerk's office would research the questions and the minutes would reflect the necessary corrections. VOTE ON MOTION TO APPROVE MOTION CARRIED Unanimous voice vote AWARDS AND AWARDS AND PRESENTATIONS PRESENTATIONS Mayor Jerome Selby presented a plaque of appreciation for leadership and outstanding service to Wilton T. White. Mr. White expressed deep humility in accepting an award that he felt represented the thousands of people who worked to improve health care in Kodiak. The hospital was a facility the community could be proud of. He wanted to pay respect and compliment the several fine departments, the doctors, and the nursing staff, who were not always recognized for their capabilities. Mayor Selby recognized Judith Nielsen, Deputy Borough Clerk, for fulfilling the certification requirements to attain the title of Certified Municipal Clerk conferred by the International Institute of Municipal Clerks. Volume XXIII Page 16 CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing Diana Buffington said Ordinance No. 97 -14 clearly defined the Assembly's intent to maybe use the sales tax for school operations. At a second meeting of the Alaskans for Tax Reform, it was made known that decreased fishing would decrease severance tax revenues. She said there was no confidence in the Borough government because of overspending, such as the purchase of a $650,000 computer. She suggested the Assembly find ways to reduce the budget. Mayor Selby clarified that the Borough did not purchase a $650,000 computer. Responding to Presiding Officer Heinrichs, Mayor Selby said it was clear in state law that a user tax could not be dedicated. Ernie Schiedler phoned. He was uncomfortable with Resolution No. 97 -29 that would disclose individual Borough employees' salaries. He saw it as pervasive information that invaded the basic right to privacy. He saw no useful purpose in disclosing anything more than the salary ranges. Betty Fitzjearl said taxpayers had a right to know where funds were spent and what the cost represented. She wanted the Assembly to give direction to publish the wages, including comp time, overtime, and benefits. Speaking to Ordinance No. 97 -14, she said she felt a promise that the tax would go to the schools would not be kept. Gilbert Morein agreed with Ms. Buffington's and Ms. Fitzjearl's comments. He wanted services cut. Lila Koplin was disheartened to hear that employees' wages would be published. She felt it would serve no other purpose than to cause discontent. She said the figures were available through the mayor's office. Leslie Watson said overtime and comp time policies should be clearly known, especially if the cost of employees had risen. This could show that maybe another employee should be hired. She did not consider this a witch hunt because public employees were responsible to the public, and the public had a right to know about overtime, comp time, and Borough vehicle use. Regular Assembly Meeting July 17, 1997 CITIZENS' COMMENTS Volume XXIII Page 17 Ken Van Dyke spoke to the one percent sales tax that he could not afford. When he ran out of money, he did not continue to spend. He asked the Assembly to look hard at the expenditures. In response to Assemblymember Milligan, Mayor Selby confirmed that some Borough employees were layed -off. Ginny Sargent phoned. She found it hard to swallow the new bed tax last year, the property tax increase this year, and now a new one percent sales tax. She felt food items should be exempt from taxation. Clay Koplin asked the Assembly to postpone the resolution to publish employees' salaries. He felt it was mean - spirited, and the non - positive outcome would be that employee morale would suffer. Postponement would allow review by the Personnel Advisory Board. He had served on the Board and members were frustrated when the Board was not consulted. Lorna Arndt felt employees' salaries should be public information because taxes paid their wages. She opposed the one percent sales tax. Craig Zimmer phoned. He felt the Assembly should spend their time more wisely than discussing the need to publish wages. He saw a need to curb rising taxes. Jennie Day Peterson, IBEW business representative, said it was a negative experience when the salaries of the Municipality of Anchorage employees were published and the information was used on a fraudulent credit application. She saw employee experience factored in when developing a budget. Lee Russell phoned. He spoke with a loan officer who was concerned about business in the community. He said he was unable to sell his properties that were listed below appraisal, and this was not the time to raise taxes. There was the perception that Borough employees were elitist because they were paid higher than others in the community. Chris Helms was happy to see Mr. White recognized. He spoke against publishing salaries because it would not serve as a budget tool. The community should work together for a positive gain. He wanted the Assembly to look for a solution to pay for services. Regular Assembly Meeting July 17, 1997 Volume XXIII Page 18 Frank Peterson, formerly of Old Harbor, Akhiok, Larsen bay, and now a Kodiak resident, heard his property tax had increased, but he felt Kodiak's economy could not support more taxes. He wanted the Assembly to work with the resources at hand. He saw no problem with publishing Borough employees' wages. Jack Hill phoned. He opposed the one percent sales tax because he could not afford more taxes. Taxes held residents hostage, and the fishermen did not know that severance taxes were raised. He supported the disclosure of salaries. He wanted to know if the Near Island Research Facility (NIRF) was over - budget. He saw the permanent fund check as a gift for people to spend as they wanted. Kodiak was on a downhill slide and building to way beyond residents' means. Phil Cline, hospital administrator, said the old hospital renovation was drawing to a close and some functions were moved. Asbestos removal continued. There was a slight loss of $28,000 in June. The loss was budgeted because low activity was anticipated; however, it was significantly less than budgeted. Responding to Assemblymember W. Stevens, Mr. Cline said the fiscal year 97 audit revealed that the hospital had a gain of $900,000. Paul Van Dyke, Borough employee, phoned. He was not ashamed of his wage. Salaries were budgeted and accounted in the annual report. He said trade journals indicated that he could earn 10 -15 percent more elsewhere. Also, public employees were hired, not elected. Diana Buffington asked who would pay for the $3 million overrun on the NIRF. Although Mayor Selby had planned to speak to this issue, he said there was not a $3 million overrun on the NIRF. He said a construction contingency was included in the $14.8 million guaranteed maximum price contract. Jake Jacobson phoned. He felt he had a right to know employees' salaries. He saw the one percent sales tax as more equitable than an increase in the mill rate because the tax base would expand to everyone doing business in the Borough. He hoped it would be dedicated to schools. He felt elected officials should be financially responsible. Regular Assembly Meeting July 17, 1997 Volume XXIII Page 19 In response to Betty Fitzjearl, Mayor Selby said the federal government paid seven percent interest to the Kodiak Island Borough because the funding for the payment of the bond was driven by the lease, and the lease payment included Lhe principlc and interest He added that there was a savings of approximately $300,000 issuance cost, and $1.2 million of interest earnings reverted to the facilities fund for Borough buildings. Ms. Fitzjearl said her previous request for employee records was refused. Responding to her comments, Mayor Selby said it was not required that the Engineering & Facilities Department director be an engineer. Jake Jacobson phoned. Fascinated by the bonding for the NIRF, he asked Mayor Selby to clearly outline the bonding figures and publish them in the newspaper. He felt the information would benefit the community. Mayor Selby said the sale and investment of the bonds were formulated and compiled by Tom Klinkert, bond attorney, and Dan Kaplin, financial advisor. Chris Helms attended an assembly work session where long -range planning was discussed. He appreciated the Assembly for listening to everyone regardless of their positions on issues. B. Items Other Than Those Appearing on the Agenda None. COMMITTEE REPORTS Assemblymember Milligan attended the Hospital Advisory Board Meeting. He appreciated the Kodiak Gardening Club member's efforts to create beautiful landscaping at the hospital. At his question, Mayor Selby said he would remit the total cost for asbestos abatement at the hospital to the Assembly. After an eight minute recess at 8:52 p.m., Presiding Officer Heinrichs reconvened the regular meeting. W. STEVENS, seconded by JOHNSON VOTE ON MOTION MOTION CARRIED Regular Assembly Meeting July 17, 1997 moved to suspend the rules to take action on item 12.B.1 Resolution No. 97 -29. Unanimous voice vote COMMITTEE REPORTS Volume XXIII Page 20 12. NEW BUSINESS B. RESOLUTIONS ID .. _ • - 1 eso u i• Hospital on Kodiak Island, Alaska the Wilton T. White Hospital. Presented for consideration was Resolution No. 97 -27 that, if adopted, recognized the many years of dedicated service and leadership to the communities on Kodiak Island by naming the hospital on Kodiak Island the Wilton T. White Hospital. W. STEVENS, moved to adopt seconded by MILLIGAN Resolution No. 97 -27. Mayor Selby said it was his great pleasure to present the resolution. He read from the resolution. Assemblymember Milligan said this was a good reflection of Assemblymember G. Stevens' diligence in championing this resolution. Assemblymember Abell worked for Mr. White as the owner of the Kodiak Auto Center 30 years ago. He had utilized Mr. White's services through the years and thanked him. Assemblymember W. Stevens had the pleasure of working with Mr. White on the Hospital Advisory Board. He saw Mr. White's ideas as instrumental in Kodiak's future with a new facility and an addition to the old facility. He agreed with the need to plan for the future to ensure that the hospital remain adequate. Assemblymember Johnson had known Mr. White for sixty years and felt he truly deserved the honor. He never dreamed when he knew Mr. White as a teenager that he would become what he was today. VOTE ON MOTION TO ADOPT Ayes: Abell, Bonney, Johnson, Milligan, W. Stevens, Heinrichs Noes: None Absent: G. Stevens MOTION CARRIED Unanimous Mr. White said he sincerely appreciated the gesture. Regular Assembly Meeting July 17, 1997 RESOLUTION NO. 97 -27 Volume XXIII Page 21 Responding to Assemblymember W. Stevens, Mayor Selby asked Mr. White if he would be available in the future for the unveiling of the hospital sign. Mr. White said he would. 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 -09 Repealing and Re- enacting ORDINANCE Kodiak Island Borough Code of Ordinances Chapter NO. 97 -09 17.36 Existing Nonconforming Uses and Structures. Presented for consideration was Ordinance No. 97 -09 that, if adopted, amended KIBC 17.36 to provide for a reduced level of regulations for residential nonconformities. JOHNSON, moved to adopt seconded by W. STEVENS Ordinance No. 97 -09. Mayor Selby said the Planning and Zoning Commission reviewed this for over a year, and the provisions were changed after public input. He said the Commission's recommendation was to adopt the changes. Presiding Officer Heinrichs called for public testimony; hearing and seeing none, he reconvened the regular meeting. Assemblymember Johnson felt the revision would be more useable. VOTE ON MOTION TO ADOPT Ayes: Bonney, Johnson, Milligan, W. Stevens, Abell, Heinrichs Noes: None Absent: G. Stevens MOTION CARRIED Unanimous B. Ordinance No. 97 -11 Repealing Kodiak Island ORDINANCE Borough Code of Ordinances Chapter 2.19 NO. 97 -11 Financial Responsibility. Presented for consideration was Ordinance No. 97 -11 that, if adopted, repealed KIBC 2.19 repealing Regular Assembly Meeting July 17, 1997 Volume XXIII Page 22 removal of an elected official or board, commission, or committee member from office for a delinquent account with the Borough. W. STEVENS, moved to adopt seconded by MILLIGAN Ordinance No. 97 -11. Mayor Selby said the provision was there prior to 1994; however, the assembly had never enforced the law and wanted to eliminate it. Presiding Officer Heinrichs opened the public hearing. Diana Buffington said public servants should be financially responsible and those individuals who did not pay their taxes should not vote on taxes. Dorothy Weeks phoned. She wanted everyone to pay their taxes. She was not in favor of repealing financial responsibility. Although Betty Fitzjearl understood that individuals could be re- elected to office, she felt this provided checks and balances in that informed voters elected individuals to represent them. Dave Sundberg phoned. He wanted everyone to be financially responsible. Leslie Watson said anyone running for office should be made aware of the law. Clay Koplin felt the requirement was restricted to certain individuals. Since he did not see the law enforced, he supported repealing. Lorna Arndt saw the requirement as needed. Jake Jacobson phoned. He felt those owing taxes should not vote on taxes. There was a distrust of government and this should be retained and enforced. Chris Jensen said the Assembly was in place to make decisions that affected the residents of Kodiak. Presiding Officer Heinrichs closed the public hearing and reconvened the regular meeting. Assemblymember W. Stevens said the law was not enforced, and the process was not specific. The law affected the assembly and all boards and commissions. He wanted an effective process for removal. Regular Assembly Meeting July 17, 1997 Volume XXIII Page 23 Assemblymember Johnson wanted everyone treated equally. embl member Abell saw people on hard times to pay their bills. He thoug t proo o to pay delinquent bills should be considered. Many volunteered their time for committees. He saw a need to clarify the requirement because the Assembly was responsible for enforcement. Presiding Officer Heinrichs sided with those speaking for retention, but he felt it was ironic that even though the names of chronic offenders were published, they were still re- elected to office. Assemblymember W. Stevens asked if the Assembly would enforce the law or make exceptions when the inability to pay was explained. Voters had the right to re- elect individuals to the vacant seats. Assemblymember Johnson saw the public's point of view expressed when re- electing someone who was not financially responsible. Assemblymember Abell wanted voters to be informed. Clerk Smith noted that the right to run for office could not be denied. Assemblymember W. Stevens saw no control on the issue because individuals could be re- elected. Assemblymember Johnson said it was difficult to find people to run for office and enforcing the law would increase the difficulty. Assemblymember Milligan had a delinquent garbage bill, but the $58,000 lien on his property ensured that the Borough would be paid. He noted that many on the list were single parents. He was paid a stipend, but there was no compensation for lobbying for Kodiak at the state level by assemblymembers. He said the assembly would decide who would fill the vacant seats, not the voters. People get behind from time to time, but volunteers should be treated well to ensure that community needs were met. unable - Presiding Officer Heinrichs closed the pubic hearing and reconvened the regular meeting. VOTE ON MOTION TO ADOPT Ayes: Johnson, Milligan, W. Stevens Regular Assembly Meeting July 17, 1997 Noes: Abell, Bonney, Heinrichs Absent: G. Stevens MOTION FAILED 3 Ayes, 3 Noes C. Ordinance No. 97 -12 Placing the Question of ORDINANCE Extending the Womens Bay Service Area on the NO. 97 -12 October 7, 1997 Ballot. Presented for consideration was Ordinance No. 97 -12 that, if adopted, placed the question of extending the Womens Bay Service Area to include the Russian River Estates Subdivision on the ballot. W. STEVENS, moved to adopt seconded by BONNEY Ordinance No. 97 -12. Mayor Selby said residents of Russian River Estates petitioned to be annexed into the Womens Bay Service Area. This would provide fire protection and road service. The Board recommended placing this on the ballot for the fall election. Presiding Officer Heinrichs opened the public hearing. Dave Conrad, Womens Bay Service Area Board chair, had submitted Board minutes that addressed the financial responsibility for upgrading the roads. He favored the ordinance but noted there were still some unanswered questions. He was available for questions. Jamie Godwin, Russian River Estates resident, noted the need to upgrade the substandard roads. Stakes were placed in her driveway but there was no plat easement. She did not know her property was outside of the service area when she purchased it, and she wanted to be included. Presiding Officer Heinrichs closed the public hearing and reconvened the regular meeting. Assemblymember W. Stevens saw several questions regarding the process of developing the roads. At his request, Mayor Selby said that after the Commission reviewed the subdivision and the final plat approval, the facilities director agreed that the roads met subdivision requirements. The Board had determined that the roads do not meet Borough standards. Regular Assembly Meeting July 17, 1997 Volume XXIII Page 25 Assemblymember Abell said he drove a concrete truck into the subdivision and turned it around. He felt the roads would be improved in time. In response to Assemblymember Johnson, Mayor Selby said the estimated cost was $15,000, but the exact figure would be determined so voters could make an informed decision. VOTE ON MOTION TO ADOPT Ayes: Regular Assembly Meeting July 17, 1997 Milligan, W. Stevens, Abell, Bonney, Johnson, Heinrichs Noes: None Absent: G. Stevens MOTION CARRIED Unanimous D. Ordinance No. 97 -13 Amending Kodiak Island ORDINANCE Borough Code Of Ordinances Chapter 8.04 Hospital NO. 97 -13 and Health Facilities Advisory Board to Provide for Specific Responsibilities of the Board to be Consistent with the Lease Agreement. Presented for consideration was Ordinance No. 97 -13 that, if adopted, amended KIBC Chapter 8.04 to provide specific responsibilities of the board to be consistent with the lease agreement with Providence. JOHNSON, moved to adopt seconded by W. STEVENS Ordinance No. 97 -13. Mayor Selby said this aligned the charge of the hospital advisory board with the Providence lease contract. The two areas affected were review of the budget and review of personnel matters. Presiding Officer Heinrichs called for public testimony; hearing and seeing none, the regular meeting was reconvened. Assemblymember Milligan informed an individual who complained about hospital fees that the Borough was not in the hospital business but Providence was. Assemblymember Johnson felt this clarified the function of the Board. Assemblymember W. Stevens concurred. As a member of the Board, he felt the changes accurately reflected the contract language. Volume XXIII Page 26 VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: G. Stevens MOTION CARRIED Unanimous MESSAGES FROM MESSAGES FROM THE BOROUGH MAYOR MAYOR Mayor Selby said comp time and personal use of Borough vehicles was prohibited. Out -of -town auditors, contractors, and inspectors used Borough vehicles in lieu of renting cars. He said there was a strict overtime policy. All overtime was approved by the department head, and was within the budget. He reported that McCarthy SDL, the construction management firm for the NIRF, hired subcontractors and during the bidding process it appeared that the project could be $3 million over budget. The figures were reviewed and it was determined that some contractors misunderstood what the bid required. Current status was the project was within budget at $14.8 million with $500,000 in contingency funds, which was not unusual for managed contracts. He applauded Kodiak Garden Club members for their outstanding job of landscaping the hospital grounds. He was proud to live in a community where residents donated valuable time. He was extremely concerned about the fishing industry and would watch it carefully. He sent a letter to Senator Stevens, and the language to include Alaskan canned pink salmon in aid packages to North Korea was at the committee level. He hoped it would have a positive impact on salmon prices. He thanked Assemblymember Milligan for his diligence. He received a letter from Rick Lauber, North Pacific Management Council chair, thanking the Assembly for the reception and a warm welcome during their meetings at the Fishery Industrial Technology Center. Governor Knowles signed the capital project budget. No line items were voided so all projects approved through the legislative session were retained. Regular Assembly Meeting July 17, 1997 W. Stevens, Abell, Bonney, Johnson, Hcinrichs Volume XXIII Page 27 The Karluk cleanup was going well and should be finished by July 18. He referred to a handout that compared the fiscal year 1985 and fiscal year 1993 budgets. AlI--i - tems except fixed costs had increase from 6% to 32 %, whereas inflation increased by 40 %. Education funding, however, increased 306% during the same time. The state had not funded the increased cost of education. He said the community was close to reaching the 6 mill local contribution cap. He wanted everyone to understand what would happen when the cap was reached. When the $350,000 inflationary cost of the salary schedule was implemented next year, seven teachers would have to be laid -off. Other Alaskan communities were laying -off teachers in order to balance their budgets. For every dollar over the cap, a dollar was returned to Juneau to the foundation formula. He did not want the quality of education to suffer. Ketchikan Gateway Borough had 200 more students and spent $4.4 million less than Kodiak on education. He hoped to have options available for meetings with the school board. Although a 9.5 mill increase was projected, the increase was 9.25 mills. Other funding built into the Borough's financial management plan would apply to some future costs. The hospital bond would be paid in three to four years. He was not concerned about having sufficient money when the cap was reached - -the real issue was what would happen when the cap was reached. He read the statewide policy analysis that projected three more years of reduced state funding. This was statewide, not just for Kodiak. It was difficult to protect a high quality education system with fiscal restraints. He was working to secure full state funding for 12 more instructional aides for next year. State funds would reduce to fifty percent the second year and to zero the third year. If the aide program was to continue after that time, funds would need to be incorporated in the school district budget. He reported that, in light of recent testimony, Houston, Texas received the Distinguished Budget Presentation Award from the Government Finance Officers Association. OLD BUSINESS None. Regular Assembly Meeting July 17, 1997 OLD BUSINESS Volume XXIII Page 28 NEW BUSINESS NEW BUSINESS A. AWARDS AWARDS Ayes: 1. Contract No. 97 -40 Professional Services CONTRACT for Survey and Staking at the Kodiak Island NO. 97 -40 Borough Landfill /Baler Facility. W. STEVENS, seconded by MILLIGAN Mayor Selby said the work prepared by CH2M Hill for closure at the landfill had been reviewed by the Assembly. These surveys were required for design of the landfill expansion. VOTE ON MOTION TO ADOPT Noes: None Absent: G. Stevens MOTION CARRIED Unanimous JOHNSON, seconded by MILLIGAN Regular Assembly Meeting July 17, 1997 moved to award Contract No. 97 -40 to Ecklund Surveying of Kodiak in an amount not to exceed $8,220. Abell, Bonney, Johnson, Milligan, W. Stevens, Heinrichs Mayor Selby said the Borough would be aggressive with trespassers at the landfill not only because people put the bears at risk of being killed, but also because the topography of the landfill was dangerous. 2. Contract No. 97 -41 End of the Road Park Project. moved to award Contract No. 97 -41 to Brechan Enterprises of Kodiak in an amount not to exceed $103,165. Mayor Selby said this end of the road recreational project at Monashka Bay was funded by the state as a result of the Exxon Valdez settlement. The funds, which were awarded some time ago, were held to partner with the Termination Point project. The project included 40 linear feet of boardwalk, 14,000 square feet of parking lot improvements, parking lot delineation, stairways, signage, fire pit, picnic tables, latrines, and native plant restoration. CONTRACT NO. 97 -41 Volume XXIII Page 29 Assemblymember W. Stevens said the facility was heavy duty and presumably vandal proof. Responding to Assemblymember Milligan, Mayor Selby said parks maintenance funds would be used for upkeep. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: G. Stevens MOTION CARRIED Unanimous Regular Assembly Meeting July 17, 1997 Bonney, Johnson, Milligan, G. Stevens, Abell, Heinrichs B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 97 -27 Naming the Kodiak RESOLUTION Island Hospital the Wilton T. White NO. 97 -27 Hospital. Action on Resolution No. 97 -27 was taken during committee reports. 2. Resolution No. 97 -28 Approving a Lease RESOLUTION Agreement Between the Kodiak Island Borough NO. 97 -28 and the Alaska Department of Fish and Game for a Portion of the Near Island Research Facility. Presented for consideration was Resolution No. 97 -28 that, if adopted, authorized the mayor to execute the lease agreement and all other required documents with the Alaska Department of Fish and Game. W. STEVENS, moved to adopt seconded by BONNEY Resolution No. 97 -28. Mayor Selby said this agreement gave the Alaska Department of Fish and Game access to the sea -water lab section of the building. Assemblymember Milligan asked if the $8,000,000 revenue bond payment was strictly based on the federal lease and what was intended for the cash flow. Mayor Selby said the federal lease paid a bond debt service of approximately $760,000, with an additional $698,000 for operations. This would be just operations for ADF &G since there was no debt service. He added that the bond had a higher rate Volume XXIII Page 30 because it was a taxable bond as required because the federal lease was the payment mechanism. The lease was pledged against the bond with no obligation to the Kodiak Island taxpayers. In response to Assemblymember Milligan, Mayor Selby explained that the $6,000,000 from the Exxon Valdez Trustee Council was part of the Shuyak Island sale proceeds. The Borough used $1,500,000 of prepaid rent as debt service reserve funds drawing interest. The ADF &G and the University of Alaska leases were structured at a lower rate that increased over time. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: G. Stevens MOTION CARRIED Unanimous 3. Resolution No. 97 -29 Clarifying Kodiak Island Borough Policy Relative to Alaska Public Records Law and the Disclosure of Employee's Wage Information. Presented for consideration was Resolution No. 97 -29 that, if adopted, allowed disclosure of the actual salaries of Kodiak Island Borough employees. MILLIGAN, moved to adopt seconded by JOHNSON Resolution No. 97 -29. Mayor Selby did not support the resolution. He said the salaries of the 14 highest paid positions were listed by employee name and position title in the annual report. He saw this as power politics in its worse form because there was no public value. Salaries were included in the borough budget, and the resolution targeted lower paid employees. This served as a distraction during a time of need to pull together to accomplish education. Salary ranges were available and comparable to other salaries in the state. JOHNSON, seconded by ABELL Regular Assembly Meeting July 17, 1997 Johnson, Milligan, W. Stevens, Abell, Bonney, Heinrichs moved to refer Resolution No. 97 -29 to the Personnel Advisory Board. RESOLUTION NO. 97 -29 Volume XXIII Page 31 Assemblymember Bonney said Mayor Selby was wrong, the salary ranges were not a true reflection. He felt he was refused information that he needed. Assemblymember W. Stevens agreed that advisory boards should be included in decisions, but he felt state law was clear that releasing the information was allowed. He was opposed to postponing. Assemblymember Milligan saw postponement as a way for the Assembly to give direction. Assemblymember Johnson contended that the Board should consider personnel and make recommendations. ABELL, seconded by BONNEY VOTE ON MOTION TO AMEND THE AMENDMENT Ayes: Regular Assembly Meeting July 17, 1997 moved amend the amendment by postponing Resolution No. 97 -29 to August 21, 1997. Assemblymember Abell felt this would give the Board the opportunity to meet with the Assembly. In Response to Assemblymember Milligan, Jennie Day Peterson, IBEW business representative, said she felt this was appropriate action. Milligan, Abell, Bonney, Johnson, Heinrichs Noes: W. Stevens Absent: G. Stevens MOTION CARRIED 5 Ayes, 1 No VOTE ON MOTION TO REFER AS AMENDED Ayes: Abell, Johnson, Milligan, Heinrichs Noes: W. Stevens, Bonney Absent: G. Stevens MOTION CARRIED 4 Ayes, 2 Noes ORDINANCES FOR C. ORDINANCES FOR INTRODUCTION INTRODUCTION 1. Ordinance No. 97 -14 Placing a Ballot ORDINANCE Measure Before the Voters at the October 7, NO. 97 -14 Volume XXIII Page 32 JOHNSON, seconded by BONNEY 1997 Regular Municipal Election That, If Passed by the Voters, Would Allow the Kodiak Island Borough to Levy and Collect a Consumer's Sales Tax Not Exceeding One Percent (1 %) of the Sales Price on All Retail Sales, on All Rents, and on All Services Made Within the Confines of the Kodiak Island Borough and the Revenues Derived Therefrom May Be Used For Kodiak Island Borough School Operations. Presented for consideration was Ordinance No. 97 -14 that, if adopted, placed the question of levying and collecting a one percent sales tax on the October 7, 1997 election ballot. moved to advance Ordinance No. 97 -14 in first reading to advance to public hearing on August 7, 1997. Mayor Selby said this was requested by the School District Long Term Funding Task Force that the Assembly appointed. The Task Force recommended placing a one percent sales tax on the ballot so voters would be involved with funding education in the future. This would expand the tax base to include tourists and out -of -state fishermen who did not pay property taxes. He viewed the one percent sales tax as a direct reduction in the mill levy. He anticipated the tax to generate $1,200,000, which equated to 1.5 mills. Assemblymember Johnson said this would place the question on the ballot, and he saw little need for debate because the voters would decide. Education would be discussed at the Town Meeting. It was agreed at the first Town Meeting to support a tax base. Assemblymember Milligan felt merchants would not profit from the tax. Assemblymember Bonney felt it was unfair to blame the school district for all of the budget problems when the problems were throughout the Borough. Responding to Assemblymember Bonney, Mayor Selby said severance tax revenue was driven by the mill levy. He noted that there was no local control over the state's budget. Regular Assembly Meeting July 17, 1997 Volume XXIII Page 33 Mayor Selby could guarantee a maximum of 7.75 mills for next year but the assembly could change that. He knew of five proposals in Juneau to reduce education funding to Kodiak. Assemblymember Abell wanted to advance the ordinance to public hearing. VOTE ON MOTION TO ADVANCE Ayes: Abell, Bonney, Johnson, Milligan, W. Stevens, Heinrichs Noes: None Absent: G. Stevens MOTION CARRIED Unanimous D. OTHER ITEMS OTHER ITEMS None. INFORMATIONAL INFORMATIONAL MATERIALS (No action required) MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. Architectural Review Board Meetings of April 28 and May 9, 1997. 2. Fire Protection Area No. 1 Board Meeting of March 11, 1997. 3. Kodiak Island Borough School District Board of Education Meetings of May 27, June 16, and May 27, 1997. B. REPORTS None. C. OTHER 1. Kodiak Island Borough School District Board of Education Special Meetings of June 26 and July 7, 1997 Summary. CITIZENS' COMMENTS Betty Fitzjearl said liquor taxes came back to communities. She said Mayor Selby and staff were always receptive to her requests for information, especially the Borough clerk and her staff. She suggested that the code section on financial responsibility be included in the election pamphlet. Regular Assembly Meeting July 17, 1997 REPORTS OTHER CITIZENS' COMMENTS Volume XXIII Page 34 She felt those in arrears should declare a conflict of interest and not vote on tax issues. In response to her question about state appropriated funds for the hospital, Mayor Selby said the legislature appropriated $5,561,000, of which $4 million was vetoed by the Governor. The remaining funds were received over a period of time since 1983. Diana Buffington phoned to defend her selection of Houston, TX as an example of the Government Finance Officers Association award. She debated computer costs and offered to help cut the budget. She asked the Assembly to remember the hospital when deciding on a sales tax. Tyan Selby phoned to thank Mayor Selby for doing a good job and for having patience with the community. Ken VanDyke said he did not want employee names but wanted to know how funds were spent. He paid 11% tax on his bed and breakfast and wondered if there would be a limit on the sales tax. Mayor Selby said the Borough would generally parallel the city of Kodiak which had a $500 limit. At 11:26 p.m. per Borough code, a motion was needed to extend the time of the meeting. W. STEVENS, moved to extend the seconded by MILLIGAN meeting to 11:45 p.m. VOTE ON MOTION TO EXTEND MOTION CARRIED ASSEMBLYMEMBER COMMENTS Unanimous voice vote When Assemblymember W. Stevens asked for the next step to declare seats vacant, Presiding Officer Heinrichs said he would request an updated list of delinquent individuals for the next work session. Assemblymember W. Stevens said state law was clear that employees' wages were public information. Assemblymember Milligan said liquor business owners held many charitable events. At a recent barbeque, he saw a Rocket Launch Facility representative with three people from the Air Force who were purchasing fish. There was a perception that Launch supporters were military types, but he believed they were people who would support the community by buying fish. Regular Assembly Meeting July 17, 1997 ASSEMBLYMEMBER COMMENTS Volume XXIII Page 35 Assemblymember Bonney said fishing was down, cannery workers had no work, and many were on welfare. He said this was the time to make cuts, not raise taxes. Assemblymember Johnson thanked and complimented the Kodiak Garden Club for volunteering to beautify Kodiak. He appreciated Asselblymember Milligan's efforts to include Alaskan salmon in North Korea aid packages. He said the new group SOTS, Senior Open Talk Session, was comprised of residents who lived in Kodiak since prior to World War II. In those days, residents had wonderful imaginations and celebrated the Christmas season by "masking ". All family members would dress in costumes to hide their identity and attend a ball and dance with everyone. Annie (Malutin) Topang told of a story when her father, Mr. Malutin, returned home from a ball and spoke of a woman he had danced with that was so light on her feet. As he spoke, the woman came through the door. The mask was removed, and it was his son Moses Malutin. He said the Town Meeting would focus on education as education had not been fully funded for several years and was close to the cap. He said there was an effort to involve all cultures. He hoped to receive information from the Institute of Cultural Affairs. He encouraged residents to attend. Assemblymember Abell wondered how dedicated taxes would be controlled. He challenged everyone to be involved in committees. He hoped to see everyone at the music festival. Presiding Officer Heinrichs was pleased to acknowledge the achievements of Wilton White. He congratulated Deputy Clerk Nielsen on attaining her CMC designation. He appreciated Deputy Clerk Nielsen and the efforts of the Clerk's office. He asked staff to prepare an updated list of delinquent accounts for the next work session. He noted the passing of Mary Bolden. He became acquainted with Ms. Bolden when he worked on the Kodiak Senior Center building. He appreciated her greeting everyday that was full of life. Presiding Officer Heinrichs announced that the assembly would meeting in a work session on Thursday, July 31 at 7:30 p.m. in the borough conference room Regular Assembly Meeting July 17, 1997 Volume XXIII Page 36 and a regular meeting on Thursday, August 7 at 7:30 p.m. in the assembly chambers. Members of the Assembly would travel to Afognak Island on Friday, August 1, weather permitting. There being no further business to come before the ADJOURNMENT Assembly, the meeting adjourned at 11:45 p.m. ATTEST: .:ii. ..... �. onna F. Smith, CMCJAAE Borough Clerk Regular Assembly Meeting July 17, 1997 Robin Heinrichs Presiding Officer APPROVED: 08/21/97 Volume XXIII Page 37