Loading...
1997-11-25 Regular MeetingA regular meeting of the Kodiak Island Borough Assembly was held November 25, 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 Father Paul Smith of St. James Episcopal Church, followed by the Pledge of Allegiance. There were present: Gary Stevens, Presiding Tom Abell Robin Heinrichs absent: Tuck Bonney KODIAK ISLAND BOROUGH Regular Assembly Meeting November 25, 1997 Scott Arndt Wayne Stevens Bob Johnson comprising a quorum of the Assembly; and Jerome Selby, Mayor Tina Seelinger, Records Manager Linda Freed, Community Development Assemblymembers Bonney and Johnson were on vacation and asked to be excused. HEINRICHS, seconded by ARNDT VOTE ON MOTION TO EXCUSE MOTION CARRIED APPROVAL OF AGENDA HEINRICHS, seconded by W. STEVENS agenda. Regular Assembly Meeting November 25, 1997 Director out -of -town moved to excuse Assemblymembers Bonney and Johnson. Unanimous voice vote moved to approve the REGULAR MEETING ROLL CALL APPROVAL OF AGENDA Volume XXIII Page 169 VOTE ON MOTION TO APPROVE MOTION CARRIED APPROVAL OF MINUTES Kodiak Island Borough Assembly meeting of November 6, 1997. W. STEVENS, seconded by HEINRICHS Assemblymember Abell noted that his name was misspelled in the minutes. The minutes would reflect the correction. VOTE ON MOTION TO APPROVE MOTION CARRIED AWARDS AND PRESENTATIONS A. Student of the Month Mayor Jerome Selby presented the Student of the Month Award to Jennifer Clampffer, a senior at Larsen Bay School, and to Ken Doctolero, a senior at the Kodiak Area Wide School. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing and General Comments. Gilbert Morein said the Town Meeting was a waste of money. He wanted taxes cut, and he supported consolidation. COMMITTEE REPORTS Phil Cline, Providence Kodiak Island Medical Center administrator, said the $77,000 loss in October was not unexpected in light of the peaks and valleys in rural health care facilities. Revenues were down Regular Assembly Meeting November 25, 1997 Unanimous voice vote moved to approve the minutes of November 6, 1997. AS CORRECTED Unanimous voice vote APPROVAL OF MINUTES AWARDS AND PRESENTATIONS STUDENT OF THE MONTH CITIZENS' COMMENTS COMMITTEE REPORTS Volume XXIII Page 170 because two surgeons were absent and costs were higher than normal due to one -time expenses. The hospital remained ahead of budget and that trend was expected to continue. He said the four month strategic planning process was drawing to a close, and he thanked Mayor Selby, Assemblymember Heinrichs, and Assemblymember W. Stevens for participating. Invitations were forthcoming for the open house on December 17 in the remodeled specialty clinic. Assemblymember W. Stevens spoke of Mr. Buckley's article on the joint Kodiak Chamber of Commerce, National Marine Fisheries Service, and Alaska Science and Technology Foundation project to promote Alpha Laval fish processing equipment. He reported that Fish Expo was well attended and upbeat. He expected changes in the fishing industry and fisheries research in Kodiak would bode well for the community. Assemblymember Heinrichs reported on the Alaska Municipal League (AML) Conference in Ketchikan where he attended a public hearing on proposed revisions to the education foundation formula that he felt would not bode well for Kodiak. The leadership and deferred maintenance seminars were informative. Former Governor Hickel proposed a Community Dividend Program that would potentially benefit Kodiak. He attended the Resource Development Council meeting in Anchorage where he heard presentations on spruce bark beetles, liquefied natural gas, the Indian country lawsuit, the permanent fund, and inshore/ offshore issues. Assemblymember Abell attended AML. He felt the Kodiak school system faired well compared to other districts in the state. At a tourism workshop, he learned that Yakutat had problems with fishermen bringing alcohol into a dry village. Discussion focused on the need to keep Alaska environmentally clean and to respect residents and their property. Assemblymember Arndt attended the AML Newly Elected Officials seminar where he had an opportunity to meet Regular Assembly Meeting November 25, 1997 Volume XXIII Page 171 representatives from different communities in the state and discuss similar problems. Presiding Officer Stevens also attended the Resource Development Council meeting. Attendees included leaders of corporations and major resource development companies. Discussion also focused on mining, fisheries, oil, and, most importantly, how subsistence would impact Kodiak's future. PUBLIC HEARING None. MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby attended the AML Mayors Conference where there was discussion with Southeast representatives on a resolution disbursing the Four Dam Pool projects to communities. He attended the AML Board meeting where several resolutions were submitted. He chaired the AML Investment Pool Board meeting and reported that $129 million was invested in the Pool in October. The overall interest return on the Pool for the past year was .5 to .75 percent higher than the open market. The Pool was based on: 1) preservation of the principal; 2) liquidity; and 3) receiving a high rate of return. The $50,000 contributed to AML operation costs over two years was reduced prior to computing the rate of return to municipalities. Senator John Torgerson and Office of Management and Budget representative Annalee McConnel met with Southwest and Southeast representatives to discuss the ferry system. Mayor Selby hoped the meeting would help avoid a conflict between the legislature and administration on management of the system. Senator Torgerson was convinced that it was important to retain all nine ferries. Of the 17 resolutions adopted at AML, 10 were introduced from Kodiak. Representatives on the four policy sections were able to defend and ensure that the resolutions moved to the general session on the last day of the conference. Regular Assembly Meeting November 25, 1997 PUBLIC HEARING Volume XXIII Page 172 He attended the AML /Joint Insurance Association (JIA) annual meeting and noted that Karleton Short, Borough Finance Director, received a risk management award for attaining a positive track record for the Borough's injury and loss control. That would mean a refund of premiums in the future. Annalee McConnell briefed him on the governor's budget and asked for support on specific items. At the August AML Board meeting, he introduced the concept of a three percent increase in the school foundation formula. Lt. Governor Ulmer attended the meeting, and he was able to discuss with her the ramifications of an increase. The Municipality of Anchorage had a $40 million tax increase over a few years, the Kenai Peninsula had a $20 million tax increase over six years, and Kodiak had a $3 million tax increase last year. These increases were specifically related to education and reduced state funding. Governor Knowles' budget would include an inflationary increase for the school foundation formula that was supported by some legislators. He was pleased that the Deferred Maintenance Task Force legislation was completed at the insistence of the AML and the Conference of Mayors. Last year deferred maintenance was ignored, and he suggested it become a statewide issue. Two news conferences and the first annual State of the Municipalities report on Gavel to Gavel focused on deferred maintenance. The Task Force proposed to spend $1.5 billion dollars over the next six years to address deferred maintenance in Alaska. He attended the state parks' work session in Kodiak where the park priorities and the planning process were discussed. Good points were noted about the needs in the Borough including Fort Abercrombie, Buskin River, and Shuyak Island parks. Chiniak, Termination Point, and Long Island lands were being negotiated by the Trustee Council for state parks. The state Transportation Improvement Program Document was complete. Otmeloi Road would be funded in one year, and the road past Pasagshak should be addressed Regular Assembly Meeting November 25, 1997 Volume XXIII Page 173 next summer. Selief Lane received more points, but the date had not changed. St. Paul Harbor repairs was second in the state at $4.5 million and should be one of the first projects funded. Other projects to receive a total of $55 million were the St. Herman inner harbor, dock repairs, the Port Lions spur breakwater, and Larsen Bay and Ouzinkie harbors. The Community Assistance Program Document outlining the substantial work staff provided to the villages was complete and would be updated annually. Mayor Selby would introduce a resolution to submit a grant application on behalf of Karluk for a new clinic. The Borough would apply for the grant; however, Karluk would be responsible for maintenance of the facility through a cooperative agreement. The annual CIP List that included village, city of Kodiak, and Borough projects was distributed to the governor and some legislators. The Permanent Fund summary was distributed, and he said it was interesting to speak with the individuals originally involved in establishing the Fund because most felt it had not achieved what was planned to achieve. He received a final report from Washington, D.C. lobbyist Brad Gilman. The retroactive Refuge revenue sharing payments of approximately $600,000 would be included in the mid -year budget. The Payment -in -Lieu -of -Tax was signed into law and the Borough would receive funds. The new Katmai Park Coastal District headquartered in Kodiak was adopted by law and $100,000 was allocated for development and for link- up with the Kodiak Fisheries Research Facility offices. Other items listed in the report were the Deserver Program, American Fisheries Act, fisheries appropriations, and statewide subsistence concerns. He was drafting a resolution establishing the Kodiak Human Resources Investment Council, a coordinated effort of 18 months by the self - sufficiency team and state and federal agencies to establish a welfare to Regular Assembly Meeting November 25, 1997 Volume XXIII Page 174 work and welfare to school program. He expected to apply for grant funds to administer the program from Kodiak rather than from Kenai or Anchorage. Mike Milligan reported that he traveled to Cape Canaveral, Florida where he witnessed a launch and toured a launch facility similar to the proposed facility for Kodiak. Witnessing the launch was an emotional experience, and he spoke with fishermen about the impact of launches and most were positive. He also had an opportunity to visit Patrick Air Force Base and Cape Kennedy, home of the shuttle launch. He said there was incredible wildlife and vegetation around the perimeter of the facility. OLD BUSINESS None. NEW BUSINESS A. CONTRACTS 1. Contract No. 97 -66 Agreement with Sisters CONTRACT of Providence of Washington, dba Providence NO. 97 -66 Health Systems of Alaska, for the purpose of Setting Forth Terms and Conditions Pursuant to Providing Mental Health Services. W. STEVENS, seconded by HEINRICHS Regular Assembly Meeting November 25, 1997 moved to approve Contract No. 97 -66 with Sisters of Providence of Washington, dba Providence Health Systems of Alaska. Mayor Selby said this was the final item to complete the transfer of the Mental Health Center to Providence. Staff received termination notices and of those who applied for positions with Providence, all but three received offers of employment effective January 2, which was the target transfer date. OLD BUSINESS NEW BUSINESS CONTRACTS Volume XXIII Page 175 This contract would purchase school mental health services and complete the state contracted mental health services for the current fiscal year ending June 30, 1998 as well as the following fiscal year ending June 30, 1999. The Borough would remain the grantee through the current fiscal year and contract to Providence. Next year Providence would receive the grant directly. This time period allowed Providence the opportunity to work with the school district to develop and deliver a high quality school program that would be evaluated for effectiveness. Assemblymember Arndt was concerned that the school year ended June, 1998 but the contact was effective through June, 1999. Mayor Selby said this gave Providence an opportunity to plan and implement the program. Assemblymember Arndt wondered if there would be a need for more than the $33,300 per month. Mayor Selby said there would be program changes but the funds needed should not change. Providence originally asked for three years but agreed to 18 months. At Assemblymember Arndt's further question, Mayor Selby said he expected to meet with the school district and Providence soon to identify the short - term needs to be addressed on January 2. Assemblymember W. Stevens, Hospital Advisory Board chair, participated in negotiations to transition the hospital to Providence. He felt that with changes in health care programs, the Borough could face potential liabilities, and this enabled health care professionals to manage the program. In response to Assemblymember Heinrichs, Mayor Selby said this would retain the grant and subcontract to Providence to provide the service for the remainder of the fiscal year. Next year, Providence would apply for the grant. Assemblymember Heinrichs asked if a cost higher than $33,300 would dilute profit sharing to the Borough. Regular Assembly Meeting November 25, 1997 Volume XXIII Page 176 Mayor Selby said the program would have separate accounting. He said the $33,300 cost was based on current services and was unlikely to be exceeded; however, if more funds were needed, there would be discussion between the Assembly, school district, and Providence. He looked forward to reviewing the services provided by Providence. Responding to Presiding Officer G. Stevens, Mayor Selby said services were provided through the summer. At Presiding Officer G. Stevens' inquiry, Mr. Cline said the desire was for a long -term relationship to ensure program stability and success in providing services. VOTE ON MOTION TO APPROVE Ayes: Regular Assembly Meeting November 25, 1997 Abell, Arndt, Heinrichs, W. Stevens, G. Stevens Noes: None Absent: Bonney, Johnson MOTION CARRIED Unanimous B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 97 -45 Urging Governor RESOLUTION Knowles and the Alaska State Legislature to NO. 97 -45 Assist on the Sale of the Four -Dam Pool Hydroelectric Projects to the cities of Ketchikan, Wrangell, and Petersburg, the Kodiak Electric Association, and the Copper Valley Electric Association. Presented for consideration was Resolution No. 97 -45 that, if adopted, urged the governor and state legislature to allow specific utilities to secure ownership of four -dam pool hydroelectric projects. HEINRICHS, moved to adopt seconded by W. STEVENS Resolution No. 97 -45. Volume XXIII Page 177 Mayor Selby said Kodiak Electric Association (KEA) requested the resolution. He deferred to Ed Kozak, KEA manager. Mr. Kozak gave a brief history of the Terror Lake Project. KEA initially reviewed the project in the 1960's and prepared the engineering studies and feasibility analysis but was unable to secure construction funds. In the 1970's the state took over the Four Dam Pool projects including Terror Lake. The state was responsible for certain repairs but funds for repairs were not available, and the utilities filed a lawsuit in 1985. The lawsuit settled out of court, and the state agreed to allow self -help funds to be used for repairs. Negotiations proceeded for two years, and a purchase price of $104 million, with a potential additional payment of $50 million, was offered. The state had not acted on the still -valid offer. Mr. Kozak added that the KEA Board, the Kodiak Chamber of Commerce, and the City of Kodiak passed resolutions in support. It was desirable for the communities to own the projects because a survey clearly identified that KEA members supported local ownership, and the KEA Board saw local ownership and control as the best way to reduce rates. VOTE ON MOTION TO ADOPT Ayes: Noes: None Absent: Bonney, Johnson MOTION CARRIED Unanimous 2. Resolution No. 97 -46 Accepting a Grant from RESOLUTION the Department of Environmental NO. 97 -46 Conservation for the Vertical Expansion of the Kodiak Island Borough Landfill. Regular Assembly Meeting November 25, 1997 Arndt, Heinrichs, W. Stevens, Abell, G. Stevens Volume XXIII Page 178 Presented for consideration was Resolution No. 97 -46 that, if adopted, accepted landfill expansion grant funds in an amount not to exceed $1,000,000. W. STEVENS, moved to adopt seconded by HEINRICHS Resolution No. 97 -46. Mayor Selby said this was a dollar for dollar match grant for the Borough landfill closeout, leachate treatment, and expansion. This was a 30 -year plan for continued use of the site, but he anticipated the site to be useable for 50 -70 years. VOTE ON MOTION TO ADOPT Ayes: Noes: Absent: MOTION CARRIED C. ORDINANCES FOR INTRODUCTION ARNDT, seconded by W. STEVENS Regular Assembly Meeting November 25, 1997 Heinrichs, W. Stevens, Abell, Arndt, G. Stevens None Bonney, Johnson Unanimous voice vote 1. Ordinance No. 97 -22 Reverting from a Mayor Plan of Government to a Manager Plan of Government. Presented for consideration was Ordinance No. 97 -22 that, if adopted, adopted the manager plan of government to establish the position of manager as the chief administrator of the Kodiak Island Borough to execute the laws and ordinances and administer Borough government in accordance with the directions and policies established by the Borough Assembly. moved to adopt Ordinance No. 97 -22 in first reading to advance to public hearing on December 4, 1997. ORDINANCES FOR INTRODUCTION ORDINANCE NO. 97 -22 Volume XXIII Page 179 Mayor Selby explained that state statutes required the Assembly to adopt the manager form of government within 60 days of the election. There was no discussion by the Assembly. VOTE ON MOTION TO ADVANCE Ayes: W. Stevens, Abell, Arndt, Heinrichs, G. Stevens Noes: Absent: MOTION CARRIED D. OTHER ITEMS HEINRICHS, seconded by W. STEVENS VOTE ON MOTION Ayes: Noes: Absent: Regular Assembly Meeting November 25, 1997 None Bonney, Johnson Unanimous voice vote Presiding Officer G. Stevens said the Assembly would meet in Goals and Objectives in January to set direction to accomplish the transition. 1. Resignation of Monashka Bay Road Service Area Board Member. moved to accept, with regret, the resignation of Dan Ogg from the Monashka Bay Road Service Area and to direct the clerk to advertise the vacancy as per borough code. Abell, Arndt, Heinrichs, W. Stevens, G. Stevens None Bonney, Johnson OTHER ITEMS RESIGNATION OF MONASHKA BAY ROAD SERVICE AREA BOARD MEMBER Volume XXIII Page 180 MOTION CARRIED Unanimous INFORMATIONAL MATERIALS (No action required) A. MINUTES OF OTHER MEETINGS None. B. REPORTS None C. OTHER 1. Economic Development Journal of November, 1997. CITIZENS' COMMENTS None. ASSEMBLYMEMBER COMMENTS Assemblymember Arndt requested a cost breakdown on the integrated computer software package that was purchased, the cost of training, and the amount paid to date. At his inquiry, Mayor Selby said the Borough attorney was preparing a letter to the contractor outlining the deficiencies of the software. Assemblymember Arndt referred to a letter from the Borough attorney regarding bonding for the NIRF project. Mayor Selby said the project was bonded 100 percent for the $14 million contract. The attorney reviewed the bonding at the request of the auditors. After the review process, the subcontractors and the primary contractor bonded, as well as the Borough, at about $80,000 for double bonding on the project. He added that the general contractor covered the bonding for their portion of the project at $2.5 million on the $14 million project. Regular Assembly Meeting November 25, 1997 INFORMATIONAL MATERIALS MINUTES OF OTHER MEETINGS REPORTS OTHER CITIZENS' COMMENTS ASSEMBLYMEMBER COMMENTS Volume XXIII Page 181 The Borough paid $80,000 to bond for $14 million with only $2.5 million recoverable. At the Borough's request, the general contractor bonded at $2.5 million in addition to sub contractors' bonding at 100 percent coverage. Because of state statute bonding requirements, $80,000 was spent for less protection. Assemblymember Arndt questioned cost savings because subcontractors were part of the cost of the building. Mayor Selby said there was no savings because if the subcontractor bonding was dropped, the Borough would be fully liable for any subcontractor who defaulted. Assemblymember Arndt asked if the Borough was only covered once. Mayor Selby responded affirmatively; however, he said the Borough paid twice because the general contractor paid a bond based on a $14 million contract and the Borough had $2.5 million coverage although the premium was based on the $14 million. This was done in compliance with state statutes. Assemblymember Abell had attended his second AML conference, and he felt there was power in numbers. He was pleased to participate in discussions and to share common problems that he felt would benefit Kodiak. Assemblymember Heinrichs noted the ten -year anniversary of the AML /JIA. He felt the reduced premiums alone made the association with the AML /JIA worthwhile because it eliminated the worry of escalating premiums taking municipalities hostage. He felt Thanksgiving was a wonderful time to reflect on the many things for which to be grateful. Assemblymember W. Stevens congratulated Jennifer Clampffer and Ken Doctolero as students of the month. He thanked Mayor Selby and other community members for attending the recent Alaska Marine Highway System public hearing in Kodiak. He noted that Kodiak was originally bypassed for the around - the -state meetings; however, pressure was brought to bear on Representative Hudson to include Kodiak. Regular Assembly Meeting November 25, 1997 Volume XXIII Page 182 Mayor Selby thanked Assemblymember W. Stevens for persuading Representative Hudson to travel to Kodiak. He hoped there was an impact on the group. Presiding Officer G. Stevens announced that the Assembly would meet in a work session Tuesday, December 2, at 7:30 p.m. in the borough conference room and a regular meeting on Thursday, December 4, at 7:30 p.m. in the assembly chambers. Borough offices would be closed Thursday and Friday, November 27 and 28, in observance of the Thanksgiving holiday. He asked the Assembly to return their committee appointment preference list to the Clerk. He noted that the Assembly would meet for Goals and Objectives on January 10 and 17. He wished everyone a happy Thanksgiving. There being no further business to come before the ADJOURNMENT Assembly, the meeting adjourned at 8:55 p.m. ATTEST: o nna F. Smit CMC/AAE F. Smit , CMC /AAE Borough Clerk Regular Assembly Meeting November 25, 1997 c Ga v L. vens Pr siding Officer APPROVED: 12/18/97 Volume XXIII Page 183