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1997-10-02 Regular MeetingA regular meeting of the Kodiak Island Borough Assembly was held October 2, 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 Pastor David Nelson of St. Paul's Lutheran Church, followed by the Pledge of Allegiance. There were present: Wayne Stevens, Presiding Tom Abell Tuck Bonney Bob Johnson Mike Milligan Gary Stevens absent: Robin Heinrichs comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC /AAE, Clerk Tina Seelinger, Records Manager Linda Freed, Community Development Director Assemblymember Heinrichs was attending a fire conference in Anchorage and asked to be excused. STEVENS, seconded by MILLIGAN VOTE ON MOTION MOTION CARRIED Unanimous voice vote Regular Assembly Meeting October 2, 1997 KODIAK ISLAND BOROUGH Regular Assembly Meeting October 2, 1997 moved to excuse Assemblymember Heinrichs. REGULAR MEETING ROLL CALL Volume XXIII Page 113 APPROVAL OF AGENDA AND CONSENT AGENDA JOHNSON, seconded by MILLIGAN VOTE ON MOTION TO APPROVE MOTION CARRIED APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS B. Proclamations C. Other Awards Regular Assembly Meeting October 2, 1997 moved to approve the agenda and consent agenda. Assemblymember G. Stevens requested that Ordinance No. 97 -10A be removed from the Consent Agenda. Clerk Smith read the item for consideration under Consent Agenda by title. Unanimous voice vote A. Employee of the Month. Mayor Jerome Selby presented the Employee of the Month Award to Jennifer Dannewitz, finance department cashier. Mayor Selby read the proclamation declaring October 1997 as Domestic Violence Awareness Month. Kathryn Martin of the Kodiak Womens Resource and Crisis Center accepted the proclamation. The proclamation applauding the United States Coast Guard's service to the Kodiak Island Community was read by Mayor Selby. Mayor Selby presented Level I Assessor /Appraiser certificates to Lila Koplin and Tina Seelinger and a Level II Assessor /Appraiser certificate to Martin Lydick. APPROVAL OF AGENDA AND CONSENT AGENDA APPROVAL OF MINUTES AWARDS AND PRESENTATIONS STUDENT OF THE MONTH PROCLAMATIONS OTHER AWARDS Volume XXIII Page 114 CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing And General Comments. Gilbert Morein wanted property taxes reduced and suggested the next Town Meeting be on all issues, not just education. Phil Cline, Providence Kodiak Island Medical Center administrator, told about the strategic planning process whereby a steering committee would aid in addressing where the hospital should be in the first part of the 21st century. The health care foundation was disseminating a needs assessment survey. In terms of financial performance, August revenues exceeded and expenditures were less than budgeted. A six percent net profit was budgeted; however, it was at eight percent. Responding to Assemblymember G. Stevens, he explained that the profits would aid the Borough's funding of depreciation. Mayor Selby added that since the hospital fund was an enterprise fund, monies were retained in that fund. He acknowledged an indirect savings because payments on the bond debt service would release an equivalent amount of monies in the general fund for other items. In response to Assemblymember Johnson, Mr. Cline acknowledged that even though it was not easy to prepare the document to transfer the Mental Health Center to the hospital, he was confident that the transfer would be finalized by January 1, per the verbal agreement. He had met with the Mental Health Center staff and was pleased with the discussion. Responding to Assemblymember Bonney, Mr. Cline said the recruitment of key positions was aggressive. Mayor Selby explained the joint recruitment process. There were ten candidates for the Clinician I position that filled the school district staff for the balance of the year. This was actually the first week the Center was short - handed. Recruitment was in Regular Assembly Meeting October 2, 1997 CITIZENS' COMMENTS Volume XXIII Page 115 progress for the Clinician III position that would be vacated in three weeks. While moving as quickly as possible on hiring, the psychiatrist was covering. COMMITTEE REPORTS Assemblymember Bonney referred to the memo from Jack Walsh, school district director of special services, expressing concerns on the mental health service at the schools. Assemblymember Bonney felt it was important to continue programs for students. Assemblymember Johnson reported the attendance at the Town Meeting was 163. The final report would be a valuable document in support of the education endowment fund, utilizing earnings from the permanent fund, and a state income tax. 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 -20 Amending Kodiak Island ORDINANCE Borough Code of Ordinances Title 2 NO. 97 -20 Administration and Personnel Chapter 2.45 Architectural /Engineering Review Board to Reflect Changes to Responsibilities. Presented for consideration was Ordinance No. 97 -20 that, if adopted, amended the Kodiak Island Borough Code to enhance the value of the Architectural/ Engineering Review Board by clarifying the Board's responsibilities. JOHNSON, moved to adopt seconded by MILLIGAN Ordinance No. 97 -20. Mayor Selby explained that the recommendations of the Architectural Review Board were oriented toward inspection of completed facilities to learn what was done well and what could be done better. He applauded the efforts of the Board that resulted in better buildings. Regular Assembly Meeting October 2, 1997 COMMITTEE REPORTS Volume XXIII Page 116 As the Assembly's representative to the Board, Assemblymember G. Stevens was impressed with the expertise of the Board members in that they were truly experts in their fields and with volunteers who wanted to do even more. Assemblymember Johnson recognized their collective expertise. Deputy Presiding Officer W. Stevens opened the public hearing; hearing and seeing none, the public hearing was closed. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: Heinrichs MOTION CARRIED Unanimous Abell, Bonney, Johnson, Milligan, G. Stevens, W. Stevens MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby noted the official change in the name of the Near Island Research Facility (NIRF) to the Kodiak Fisheries Research Center to better define the location and use of the facility. Receipt of $3,000,000 from the University of Alaska was forthcoming, and the $4,000,000 Exxon Valdez oil spill payment was received. The Kodiak Island Health Care Commitment to Caring Foundation provided a check for $80,000. He commended those who made pledges for equipment and followed through with payment of the pledges. The monies would be used for payment on the $1,000,000 equipment loan to be paid off as pledges came in. The State was billed for the final $50,000 of the $125,000 Murdock Charitable Trust. Regular Assembly Meeting October 2, 1997 Volume XXIII Page 117 The construction crew anticipated being through at the hospital in two weeks. The final energy savings equipment was on order delay. It was estimated it would take $50,000 to remove the asbestos from the old boiler room. He anticipated surplus monies at the end of construction. The Southwest Alaska Transportation Committee was moving forward for a comprehensive transportation plan for southwest Alaska and would ask for input and ideas. The State -Wide Transportation Improvement Program (STIP) list was available. Otmeloi Way did not score as a very high priority and the Selief Lane project was delayed to the year 2001. The "S" curve at Pasagshak was on the program to receive funding next year. There would be continued review with the committee. The transfer of the gravel parcels in Womens Bay to the Borough was requested of the U.S. Coast Guard. He met with Fish & Wildlife staff about the Bear Refuge trail system to form a steering planning committee. An additional $25,000 was received to complete a part of the Island Creek trail behind Safeway. The committee was also planning for a trail from the end of Monashka Bay to Anton Larson Bay. Information was received that the Fish & Wildlife revenue sharing funds would be paid retroactive through 1998 at $300,000 per year. The payment -in- lieu -of -taxes program (PILT) was nationally increased, resulting in approximately $30- 40,000 additional for the Borough. Funding for a customs agent in Kodiak was approved with staffing from the U.S. Customs Office in Anchorage as needed. The U.S. Coast Guard appropriations bill containing the Hangar 3 repairs was stalled. Regular Assembly Meeting October 2, 1997 Volume XXIII Page 118 The raw fish tax was $170,000 less than what was estimated in the budget. The Outer Continental Shelf (OCS) revenue sharing bill was being pursued with a recommendation that the bill be introduced to Congress for additional monies to Kodiak for the lease sale in Cook Inlet. There was a request to transfer the National Marine Fisheries Service (NMFS) Utilization Review Program to the Alaska Center. Twenty percent of the $160,000,000 Dinkum Sands settlement monies on north slope oil was dedicated to marine research. A letter was sent to Gail Phillips and Mike Miller, State legislators, based on the Alaska Municipal League and Alaska Conference of Mayors request for a three percent cost -of- living adjustment to the foundation formula and an appointment of a task force to pursue fashioning a foundation formula that delivers high quality programs cost - effectively. He thanked the 163 who attended the Town Meeting on education. He thought execellent ideas were brought forward for the Borough and school district to consider. Responding to Assemblymember Milligan, Mayor Selby expected a $250- 300,000 surplus in the hospital construction account. The close -out plans for the gravel pits was included in the leases. In response to Assemblymember G. Stevens, Mayor Selby explained the "S" curve was past the Pasagshak beach. It was thought to take out the "S" for a lessor grade and less sharp curves. UNFINISHED BUSINESS A. Reconsideration of Resolution No. 97 -42 Retaining Legal Counsel for the Kodiak Island Borough. Regular Assembly Meeting October 2, 1997 UNFINISHED BUSINESS RESOLUTION NO. 97 -42 Volume XXIII Page 119 Presented for reconsideration was Resolution No. 97 -42 that retained the law firm of Jamin, Ebell, Schmitt and Mason to represent the Kodiak Island Borough in matters of law for a reimbursement rate of $150 per hour unless otherwise specified. MILLIGAN, seconded by JOHNSON Assemblymember Milligan noted, for the record, that he voted on the prevailing side. He considered two points critical to reconsideration: 1) the action could affect the Exxon Valdez oil spill cases; and 2) counsel on federal cases from this firm that was not available elsewhere on Kodiak Island. Assemblymember Bonney disagreed as it had nothing to do with the Exxon Valdez oil spill settlement. He felt strongly that if it was business as usual, the Assembly was not doing their jobs. He pointed out that since this issue was not viewed for ten years, adding another three would be thirteen years. But, he supported the motion as there may be other results coming from the action. VOTE ON MOTION TO RECONSIDER Ayes: Noes: None Absent: Heinrichs MOTION CARRIED Unanimous The motion to adopt Resolution No. 97 -42 Retaining Legal Counsel for the Kodiak Island Borough was before the Assembly for consideration. Regular Assembly Meeting October 2, 1997 moved to reconsider the vote on Resolution No. 97 -42 retaining legal counsel for the Kodiak Island Borough. Bonney, Johnson, Milligan, G. Stevens, Abell, W. Stevens Volume XXIII Page 120 BONNEY, seconded by MILLIGAN moved to amend Resolution No. 97 -42 by substituting in the fourth NOW, THEREFORE, BE IT FURTHER RESOLVED that the agreement be valid for "three years, ending September 30, 2000" for "one year, ending September 30, 1998 "; and to add as a fourth NOW, THEREFORE, BE IT FURTHER RESOLVED the wording: "NOW, THEREFORE, BE IT FURTHER RESOLVED by the Assembly of the Kodiak Island Borough that the assembly shall meet with legal counsel on six month intervals to discuss legal matters, and at such other times that a particular legal issue needs discussion." Assemblymember Milligan felt this amendment reflected more accurately the consensus the Assembly sought because legal fees were an item in the budget every year. Assemblymember G. Stevens was willing to support the amendment although day -to -day contact for the attorney was with the mayor's office. He was still concerned that this had not been reviewed for ten years and if the Exxon Valdez oil spill settlement was not resolved in three years, what happened. Assemblymember Johnson thought the amendment resolved the issues of disagreement. He noted the Assembly received copies of letters to and from the attorneys and have consulted with them. He felt comfortable with a six month review. Regular Assembly Meeting October 2, 1997 Volume XXIII Page 121 Assemblymember Abell emphasized that at no point had the Assembly been dissatisfied with the firm. VOTE ON MOTION TO AMEND Ayes: Noes: None Absent: Heinrichs MOTION CARRIED Unanimous VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: None Absent: Heinrichs MOTION CARRIED Unanimous NEW BUSINESS NEW BUSINESS A. CONTRACTS CONTRACTS 1. Contract No. 95 -17A Addendum for CONTRACT Engineering Services for Vertical NO. 95 -17A Expansion, Wastewater /Leachate Control, Partial Closure, and Lateral Expansion of the Kodiak Island Borough Landfill. MILLIGAN, seconded by BONNEY Mayor Selby said this addendum was to the existing original agreement for the final design and Regular Assembly Meeting October 2, 1997 Johnson, Milligan, G. Stevens, Abell, Bonney, W. Stevens Milligan, G. Stevens, Abell, Bonney, Johnson, W. Stevens moved to approve Contract No. 95 -17A with CH2M Hill in an amount not to exceed $162,900. Volume XXIII Page 122 construction phase of closing out the landfill in accordance with the plan. He credited Ron Riemer, environmental engineer, for using consultants wisely for a savings of $50,000 to the contract price. Responding to Assemblymember Milligan, Mayor Selby said there would be public input on the future landfill footprint. A leachate treatment system to reduce impact on the aquifer system would be installed. VOTE ON MOTION TO APPROVE Ayes: Noes: Absent: MOTION CARRIED B. RESOLUTIONS None. C. ORDINANCES FOR INTRODUCTION G. Stevens, Abell, Bonney, Johnson, Milligan, W. Stevens None Heinrichs Unanimous Ordinance No. 97 -10A Amending Ordinance No. 97- 10 Fiscal Year 1998 Budget to Accept Funds to Create an Enterprise Account for the Kodiak Area Transit System (KATS). Presented for consideration was Ordinance No. 97 -10A that, if adopted, would provide the mechanism for receiving funds, through the establishment of an enterprise account, to initiate a transit system for the Kodiak urban area. Mayor Selby explained that grant applications were submitted to seek the funds that were received. The committee worked with nonprofits and other organizations to fund some form of transportation. The committee was charged to bring back a Regular Assembly Meeting October 2, 1997 RESOLUTIONS ORDINANCES FOR INTRODUCTION ORDINANCE NO. 97 -10A Volume XXIII Page 123 recommendation if it was felt the system would pay for itself. He listed the grants and expenses for a total budget of $382,000. The route would cover Bells Flats to the Monashka Bay area, including the Coast Guard Base. He expected more detail would be forthcoming in two weeks at the public hearing. MILLIGAN, seconded by JOHNSON G. STEVENS, seconded by BONNEY Regular Assembly Meeting October 2, 1997 moved to adopt Ordinance No. 97 -10A in first reading to advance to public hearing on October 16, 1997. Assemblymember Milligan thought the concept was exciting and thanked Linda Freed, Community Development Department Director, and Pat Branson, Director for Senior Citizens of Kodiak, for their efforts to obtain funding resources not normally coming to the Borough for a coordinated transit system of an infrastructure that was already in place. He thought 18 months was a good review period. Assemblymember G. Stevens felt the Assembly faced what could be a potential subsidy as other cities heavily subsidized their transit systems. Although the plan was good, it red - flagged why nonprofits were going out of the transit business. He did not want the Borough to subsidize a transit system. moved to amend Ordinance No. 97 -10A by adding as Section 5 the following: "Passage of this resolution in no way authorizes the Kodiak Island Borough to subsidize a transit system." In speaking to his amendment, Assemblymember G. Stevens felt that this would make it clear that in no way did it obligate the Borough. Volume XXIII Page 124 Assemblymember Milligan spoke against the amendment. He read a letter from Margaret Hall relating that the transit system provided independence for senior citizens. He felt it was a worthy expenditure of tax dollars. Assemblymember Bonney was of the opinion that the amendment put all on notice that there was no obligation felt to fund the transit system if it needed additional funding. It sent a message to the nonprofits and the community that the assembly was being careful with tax dollars. Assemblymember Johnson felt the amendment did not say the Borough could not fund the system. Linda Freed, Community Development Department director, was asked to respond to questions of the Assembly. Responding to Assemblymember Johnson, she said she worked with nonprofits in the community that had existing transportation systems, and they indicated they would work with the Borough for funding for this system rather than spend more dollars for separate systems. Assemblymember Johnson reiterated that it was pass - through funding but did not prevent the Borough from subsidizing if needed. Assemblymember Abell pointed out that this language from Resolution No. 97 -42 sent the message that the Assembly did not want more Borough expenses. VOTE ON MOTION TO AMEND Ayes: Abell, Bonney, G. Stevens Noes: Johnson, Milligan, W. Stevens Absent: Heinrichs MOTION FAILED 3 Ayes, 3 Noes Regular Assembly Meeting October 2, 1997 Volume XXIII Page 125 Assemblymember Milligan pointed out the motion was to forward the ordinance to public hearing, at which time amendments could be considered. He hoped all people concerned, pro or con, would come forward with input. Assemblymember G. Stevens could not support a motion that implied the Borough would subsidize. He felt strongly there needed to be a caveat. He was offended that it was implied he was showing dishonor or disrespect to senior citizens because he did not intend that. Assemblymember Johnson did not see an inference that the Borough intended to support financially the system in the future. He pointed out that any venture had risks. Assemblymember Bonney was cautious about possible use of tax money to subsidize but realized that there was an 18 month trial period. Assemblymember Milligan again mentioned the services being decreased for senior citizens and the need to decide whether or not to support them. Subsidizing the system with tax monies needed studying because the main beneficiaries would be senior citizens and children. Assemblymember Johnson added that cannery workers and others who walked to work would also benefit. Assemblymember Bonney said that although he supported the amendment, he thought the message was clear now and put all on notice that the Borough did not intend to subsidize the transit system. Assemblymember Abell emphasized the need to pass the ordinance on to public hearing. VOTE ON MOTION Ayes: Regular Assembly Meeting October 2, 1997 Bonney, Johnson, Milligan, Abell, W. Stevens Volume XXIII Page 126 Noes: Abstain: Absent: MOTION CARRIED It was noted for the record that Assemblymember G. Stevens' abstention was recorded on the prevailing side. 2. Ordinance No. 97 -21 Rezoning a Thirty -eight Acre Portion of Lot 34, U.S. Survey 2539 From RR1 -Rural Residential To C- Conservation. (Generally Located at Bruhn Point in Womens Bay) Presented for consideration was Ordinance No. 97 -21 that, if adopted, would reverse a 1986 Commission and Assembly action that rezoned the property from C- Conservation to RR1 -Rural Residential. The suitability for the potential density level permitted by RR1 zoning was felt to be marginal. Ordinance No. 97 -21 was advanced to public hearing on October 16, 1997 under "Consent Agenda ". D. OTHER ITEMS 1. October 7, 1997 Regular Municipal Election Workers. G. STEVENS, seconded by MILLIGAN Clerk Smith read the list of volunteer election workers for the municipal election. VOTE ON MOTION MOTION CARRIED Unanimous voice vote Regular Assembly Meeting October 2, 1997 None G. Stevens Heinrichs Unanimous moved to approve the election workers list as submitted by the Borough clerk. ORDINANCE NO. 97 -21 OTHER ITEMS ELECTION WORKERS Volume XXIII Page 127 INFORMATIONAL MATERIALS (No action required) A. B. MINUTES OF OTHER MEETINGS 1. Kodiak Island Borough Mental Health Center Advisory Board Meeting of August 11, 1997. 2. Providence Kodiak Island Medical Center Advisory Board Meeting of August 20, 1997. 3. Kodiak Island Borough School District Board of Education Meeting of August 18, 26, and September 8, 1997. 4. Planning and Zoning Commission Meeting of July 16, 1997. REPORTS 1. Kodiak Island Borough September 1997 Financial Report. 2. Kodiak Island Borough Mental Health Center MHIS Summary Reports for May, June, and July 1997. 3. Kodiak Island Borough Mental Health Center September 1997 Director's Report. C. OTHER 1. KAMI Newsletter September 1997. CITIZENS' COMMENTS Roger Reddekopp felt there was a need to wait to see if the hospital profit continued before they acquire the Mental Health Center. He urged the Assembly to retain the hospital monies instead of paying on bonds that were passed by the people. Pat Branson, Senior Citizens of Kodiak director, worked hard on the effort to bring in $250,000 for the transit system. She did not mean to imply there would be a request for Borough funding after the 18 month trial period. She emphasized the system was to benefit nonprofits in the community. At least if it does not work, the project was given an opportunity. She agreed with Assemblymember G. Stevens when he Regular Assembly Meeting October 2, 1997 INFORMATIONAL MATERIALS MINUTES OF OTHER MEETINGS REPORTS OTHER CITIZENS' COMMENTS Volume XXIII Page 128 said his comments were not to disparage the work done and thought there was more agreement than not, but it would be inappropriate for the Borough to fund the transit system. Doug Letch complimented the responsible party for the fix of potholes on Woodland Drive. ASSEMBLYMEMBER ASSEMBLYMEMBER COMMENTS COMMENTS Assemblymember Abell thanked the Mayor for the update on the Kodiak Fisheries Research Center (KFRC), formerly NIRF, construction. He added that it was discovered that there was water in the fuel of the crane, not vandalism as first thought. Assemblymember Johnson complimented Pat Branson and Linda Freed for the complex program for a public transit system. He thanked those who attended the Town Meeting. He was happy to see the hill behind the KANA medical clinic beautified. Assemblymember G. Stevens recognized Brechan, Enterprises as the party responsible. Responding to Assemblymember Bonney, Mayor Selby reported that the $500,000 received from PILT was placed in the general fund. The KFRC construction contingency fund was comprised of state, federal, and revenue bond receipts. The contingency fund was for site work outside of the normal contract and also as a result of lease commitments through the administrative process when the user requests something not in the original concept. If the Borough chooses to add to the building, that was an additional Borough expenditure. The building was constructed for four tenants. Assemblymember Bonney thought it seemed the Assembly was by- passed with a contingency fund over the guaranteed maximum price (GMP). Mayor Selby explained that all the monies were the tenants' monies that the Borough was managing; consequently, their requests would be honored. Continuing his response, Mayor Selby said the Borough was in the Regular Assembly Meeting October 2, 1997 Volume XXIII Page 129 process of redeveloping the changes relating to the cost overruns to bring forward. Assemblymember Milligan urged everyone to vote on Tuesday, October 7. He noticed the tax rate question would cause the biggest change as each teacher's salary would increase $10,000- $50,000. He wanted to live in a community with good education and was more than willing to pay for it. He elaborated on the bear problem in that it was not just in Kodiak but wildlife across the nation. Deputy Presiding Officer W. Stevens congratulated the employees in the Assessing Department on their awards. There being no further business to come before the ADJOURNMENT Assembly, the meeting adjourned at 9:34 p.m. ATTEST: C DOTIY\- 4 - �`�✓'� �� nna F. Smith, CMC /AAE Borough Clerk Regular Assembly Meeting October 2, 1997 Robin Heinrichs Presiding Officer Approved: 11/06/97 Volume XXIII Page 130