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1994-01-25 Regular MeetingThere were present: Jack McFarland, Alan Austerman Gordon Gould Mike Milligan comprising a quorum APPROVAL OF AGENDA VOTE ON MOTION TO APPROVE Ayes: Noes: MOTION CARRIED APPROVAL OF MINUTES A. MONROE, seconded by MILLIGAN Regular Assembly Meeting January 25, 1994 KODIAK ISLAND BOROUGH Regular Assembly Meeting January 25, 1994 A regular meeting of the Kodiak Island Borough Assembly was held January 25, 1994 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:35 p.m. The invocation was given by Envoy Craig Fanning of the Salvation Army, followed by the Pledge of Allegiance. Presiding John Burt Suzanne Hancock Mary Monroe of the Assembly; and Jerome Selby, Mayor Donna Smith CMC, Clerk Duane Dvorak, Community Development Department Judi Nielsen, Deputy Clerk MONROE, moved to approve seconded by MILLIGAN agenda. Austerman, Burt, Gould, Hancock, Milligan, Monroe, McFarland None Unanimous K.I.B. Assembly Meeting of January 6, 1994. moved to approve minutes of January 6, 1994. REGULAR MEETING .ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES Volume i..::I P3 ;e '.8 VOTE ON MOTION TO APPROVE Ayes: CITIZENS' COMMENTS A 1 4 Burt, Gould, Hancock, Milligan, Monroe, Austerman, McFarland Noes: None AWARDS AND PRESENTATIONS MOTION CARRIED Unanimous AWARDS AND PRESENTATION A. Student of the Month Mayor Jerome Selby presented the Student of the Month Award to K. C. Mackie, a sophomore at Kodiak High School. A. Agenda Items Not Scheduled For Public Hearing Pat Branson, Senior Citizens of Kodiak director, spoke in favor of Ordinance No. 94 -03 because it exempted community purpose organizations from paying personal property tax. She understood that the senior citizens of Kodiak personal property tax was $7,000 and that with decreased local and state funding, payment of taxes cut into senior programs. She felt the Senior Citizens organization contributed to community efforts by enhancing the social welfare, safety and economy of Kodiak. Giovanni Tallino, Kodiak Island Sportsmans Association (KISA) president, favored adoption of Ordinance No. 94 -03. He felt KISA provided recreational and educational opportunities to the community, and he estimated that 2,000 man hours were dedicated to educate people in the safe use of firearms. He contended that KISA would cease to exist if taxed. Rexeen Olson phoned to speak in favor of Ordinance No. 94 -03. She felt that all organizations listed in the ordinance provided service to the community and it was important to assist their continued operation. Charles Elliott favored adoption of Ordinance No. 94 -03 because KISA was a not - for - profit organization that sponsored the junior fishing derby and rifle and pistol competitions and provided fire arm safety instruction. He emphasized that KISA was run by volunteers. Regular Assembly Meeting January 25, 1994 CITIZENS' COMMENTS t STUDENT OF THE MONTH Volume XVIII Page 19 B. None. COMMITTEE REPORTS Items Other Than Those Appearing on the Agenda Assemblymember Milligan attended the Mental Health Center Advisory Board meeting where several issues were discussed including acquiring a psychiatrist for Kodiak. He felt the Board was motivated. Assemblymember Austerman explained that he would attend his first Hospital Advisory Board meeting due to the fact that one meeting was cancelled and he was out of town for the subsequent meeting. He attended Borough /employee union negotiation meetings and was impressed with the caliber of people attending. He was pleased to be a part of the negotiations and hoped for resolution of the issues in a timely manner. Assemblymember Burt stated the Planning and Zoning Commission had several issues upcoming and there was a need to appoint additional Commissioners because of the lack of A quorum at the last meeting. COMMITTEE REPORTS Pik PUBLIC NEARING 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. 94 -01 Rezoning Lots 1 - 6, ORDINANCE Lakeside Subdivision From I-- industrial To LI -- NO. 94 -01 Light Industrial. Presented for consideration was Ordinance No. 94 -01 which, if adopted, rezoned property adjacent to the Kodiak Municipal Airport consistent with development trends in the area. AUSTERMAN, moved to adopt seconded by MONROE Ordinance No. 94 -01. Mayor Selby explained that the City of Kodiak requested the rezone that was in conformance with the comprehensive plan. Presiding Officer McFarland called for public . testimony; hearing and seeing none, he reconvened the regular meeting. Regular Assembly Meeting Volume XVIII January 25, 1994 Page 20 Assemblymember Austerman, for the benefit of the listening audience, explained that the property was adjacent to the municipal airport. He understood that the City of Kodiak intended to build a public safety facility that combined city police, state troopers and jail. At questions raised by Assemblymember Burt, Mayor Selby replied that rezoning the property did not affect the operation of the airport and that, in fact, it was actually a down zone that reduced potential conflicts between industrial use and future airport use. At Assemblymember Burt's additional question, Mayor Selby stated the property would act as a buffer zone. Presiding Officer McFarland recalled a meeting two years ago with the Planning and Zoning Commission and City representative where zoning of neighboring property was discussed. VOTE ON MOTION TO ADOPT Ayes: n Noes: None MOTION CARRIED Unanimous Gould, Hancock, Milligan, Monroe, Austerman, Burt, McFarland B. Ordinance No. 94 -02 Amending Kodiak Island ORDINANCE Borough Code 17.12.040 Conditional Uses of the NO. 94 -02 NU- Natural Use Zoning District to Add Parks, Including Related Equipment, Facilities, and Structures, as Conditional Uses in This Zoning District. Presented for consideration was Ordinance No. 94 -02 which, if adopted, amended Kodiak Island Borough Code to define conditional use parks and recreational support structures in the natural use zoning district. GOULD, moved to adopt seconded by MONROE Ordinance No. 94 -02. Mayor Selby explained that the ordinance clarified the code section that dealt with definition of recreational support structures. Regular Assembly Meeting Volume XVIII January 25, 1994 Page 21 Presiding Officer McFarland called for public testimony; hearing and seeing none, he reconvened the regular meeting. There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Noes: None MOTION CARRIED Unanimous 5 7 Hancock, Milligan, Monroe, Austerman, Burt, Gould, McFarland MESSAGES PROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby reported that staff was working on the fiscal year 1995 budget, and he anticipated submission to the Assembly in April, 1994. He attended the Alaska Municipal League (AML) Conference in Juneau. He did not anticipate a good budget experience due to the fact that Governor Hickel asked the legislature to cut municipal assistance revenue sharing by 50 percent, which equated to approximately a $50,000 reduction in revenues to the Borough. He did not expect the 50 percent cut to go through but noted the range could be 20 -25 percent. At AML he met with Margaret Lowe, Health and Social Services Commissioner, and received confirmation of support to remodel the hospital. He said the final answer on all projects was funding and funding was questionable. He reported that John Sandor, Department of Environmental Conservation Commissioner, expressed support for expansion of the City wastewater treatment plant but that also was dependent on funding. He was encouraged that legislators had a good knowledge of Kodiak projects and were supportive about completing the projects if funds were available. He attended Southwest Alaska Municipal Conference (SWAMC) meetings in Anchorage. He reported on discussion with Carl Rosier, Commissioner of Fish and Game, about concerns of the creation of a fifth ADF &G region tying into the North Pacific Fisheries Management Council. He said continued reductions in the field, particularly in Kodiak, resulted in fewer manned weir sites. Regular Assembly Meeting Volume XVIII January 25, 1994 Page 22 He said that Borough lobbyist, Brad Gilman, indicated the Magnusen Act would not go into effect until 1995. He was unsure of the status of the Marine Mammals Protection Act because an environmental sub -group contested document language and made an issue with the committee chair. He expected an extension of current fishing industry exemptions to allow the Act to move through Congress. He reported there were several major fishery issues at the federal level and on the need to renew the inshore /offshore allocation that expired January 1995. He congratulated Presiding Officer McFarland as the newly - elected president of SWAMC. He said the Mental Health Center Advisory Board was reviewing the psychiatrist analysis, and he expected a recommendation to the Assembly within two months. He was notified that the state municipal grant for the current fiscal year was approved and was designated to go to Phase IV of the Kodiak High School remodel. He said the grant of $353,000 would be before the Assembly in the form of a budget amendment. He said the Shuyak Island land sale was progressing, and the State Department of Natural Resources responded well to concerns of the Borough's ownership of Shuyak. He indicated it was fortunate that all but a small section on the north side of Shuyak Island was patented to the State of Alaska and eliminated potential title requirements. He was pleased that the state was willing to work with the Borough to eliminate barriers to ensure a smooth transaction. He expected the authorization for the federal appraisal was before the Exxon Valdez Trustee Council on January 21, 1994 and did not anticipate the Council delaying authorizations. He expected receipt of the appraisal figure in four to five months with the next step being negotiations. He continued that the Planning and Zoning Commission reviewed and recommended the sale. Assemblymember Burt asked if there was a potential problem in receiving state funds for the new elementary school, to which Mayor Selby responded the 70% funding commitment was made and will be in fiscal year 1995 budget. Volume XVIII Regular Assembly Meeting Page 23 January 25, 1994 OLD BUSINESS None. NEW BUSINESS A. BID AWARDS GOULD, seconded by MILLIGAN 1 1. Contract No. 94 -02 Architectural/ CONTRACT Engineering Services for Ouzinkie School NO. 94 -02 Remodel /Addition. moved to award Contract No. 94 -02 to Kumin Associates, Inc. of Anchorage, Alaska in an amount not to exceed $144,000. Mayor Selby reported that the Architectural Review Board reviewed the proposals and had oral presentations from the top three firms. He said the Board recommended awarding the contract to Kumin Associates, Inc. Assemblymember Burt found that $144,000, which was 12 percent of the entire contract, was an incredible percentage to pay. He asked if each architectural firm gave a price submittal. Mayor Selby stated there was no price submittal because it was a negotiated contract. He said the industry standard for architectural fees was ten to twelve percent. He stated that twelve percent was the absolute cap and the intent was to negotiate the price at less than $144,000. At further questions raised by Assemblymember Burt, Mayor Selby explained that the contract authorized the start of negotiations. He reiterated that he was committed to present the final contract at less than $144,000 for the final scope of work. Assemblymember Burt felt contract should be awarded after negotiations. At questions raised by Assemblymember Austerman, Mayor Selby explained that the industry standard was eight to ten percent for new construction and ten to twelve percent for remodels. OLD BUSINESS NEW BUSINESS BID AWARDS Regular Assembly Meeting Volume XVIII January 25, 1994 Page 24 VOTE ON MOTION TO AWARD Ayes: Noes: Burt MOTION CARRIED 6 Ayes, 1 No 2. Contract No. 94 -03 Architectural/ CONTRACT Engineering Services for Northstar NO. 94 -03 Elementary School. MONROE, seconded by MILLIGAN Regular Assembly Meeting January 25, 1994 Milligan, Monroe, Austerman, Gould, Hancock, McFarland moved to award Contract No. 94 -03 to Architects Alaska of Anchorage, Alaska in an amount not to exceed $8,500,000. Mayor Selby said the Architectural Review Board reviewed the proposals and had oral presentations from the top three firms. He said the Board recommended awarding the contract to Architects Alaska. He noted that the recommended cap was ten percent because it was new construction. He said the contract was for the engineers to make a preliminary site review for presentation to the Assembly prior to authorizing design drawings. Assemblymember Milligan summarized, and Mayor Selby concurred, that the Borough was not locked into a specific site by approving the contract. Assemblymember Burt noted that Americans with Disabilities Act (ADA) costs were extra and wondered if the $8.5 million included those costs. Mayor Selby explained that ADA requirements were designed into the building and included in the $8.5 million. Assemblymember Austerman was not opposed to schools but did not favor spending money on a poor site. He said that Architectural Review Board chairman Ron Chase spoke to the Assembly at the last work session and expressed concern at the topography of the site and the potential need for additional funds to complete the project. Assemblymember Austerman understood there was a need to pump sewage and_ engineer a storm drain to run water away from the site. He contended the site was marginal and thought it unwise to pay engineers to report how much Volume XVIII Page 25 additional would have to be spent. He argued that the old hospital site was adequate for a school and suggested the potential to put a second story on East Elementary School. Assemblymember Gould favored awarding the contract. He recognized that the site was difficult but felt an assessment to identify problems and indicate costs was the mechanism to gain information to make an intelligent decision. Assemblymember Hancock was on the School Board when approximately eight sites were reviewed and eliminated. She was willing to take the next step to garner sufficient information to make an informed decision. Assemblymember Monroe understood Architectural Review Board concerns but contended that there was a need to evaluate the site and find solutions to problems. Presiding Officer McFarland appreciated Board representation at the Assembly work session because the interaction made for a two part proposal. He felt it was important to look at excavation factors, Oak including ball park placement, drainage and sewage problems. He felt it was necessary to evaluate the site to determine potential design problems and possible added property needs. He stressed that growth in the area indicated a need for another elementary school. He was unsure if East Elementary School had capacity for another story but contended that playgrounds and the parking area were insufficient for increased population. Assemblymember Burt felt it would be dangerous for children to walk to school in winter. He said the School Board indicated schools should be built for no more than 500, but Northstar Elementary School was designed to only accommodate 350. VOTE ON MOTION TO AWARD Ayes: Monroe, Gould, Hancock, Milligan, McFarland Noes: Austerman, Burt MOTION CARRIED 5 Ayes, 2 Noes _ Regular Assembly Meeting Volume XVIII January 25, 1994 Page 26 B. RESOLUTIONS 1. Resolution No. 94 -04 Urging the Alaska Aerospace Development Corporation to Designate Cape Chiniak, Kodiak Island as the Alaska Launch Facility Site. Presented for consideration was Resolution No. 94 -04 which, if adopted, urged the Alaska Aerospace Development Corporation to designate Cape Chiniak as the preferred site for placement of the Alaska orbital launch facility. GOULD, moved to adopt seconded by MILLIGAN Resolution No. 94 -04. Mayor Selby explained that Cape Chiniak was one of three sites considered for the Alaska launch facility. He said the Board would make a decision next week, and he felt that the facility brought outstanding opportunity to the community. He said that Leisnoi, Inc. had tax concerns and Pat Carlson, Borough assessor, was preparing an analysis of specific tax responsibilities. He said that section three of the resolution considered a reduction in tax but it was not a commitment, only an intent to consider. He said the intent was to launch communication satellites and assured the Assembly that no nuclear or military type satellites would be launched. He felt it was a possible economic boost and educational for school children. At questions raised by Presiding Officer McFarland, Mayor Selby invited the Leisnoi, Inc. representative to speak. Dvan Conaway, president and C/O of Leisnoi, Inc., read a policy statement that outlined specific obstacles to be overcome, including zoning and property tax consequences, if Cape Chiniak was selected. She felt the benefits to Kodiak were exciting and hoped for improved relationship between local government and Native corporations. She said there was an opportunity for additional revenue without risking Kodiak's beauty and environmental balance. At questions raised by Assemblymember Burt, Mayor Selby explained that three sites of less than five acres were needed - -one for the launch pad, one for the observation building and a third for a warehouse/ rocket assembly working area. He anticipated ten to twenty permanent staff positions with increased staffing when actual launches took place. RESOLUTIONS opok RESOLUTION NO. 94 -04 Volume %VIII Regular Assembly Meeting Page 27 January 25, 1994 .1 Assemblymember Burt was concerned with the volatility of solid fuel and asked for information on the plan for shipping the material to Kodiak. Mayor Selby stated the Cape Chiniak site was exceptional because it had an old runway that had upgrade potential and was close to shipping channels. He anticipated transportation of most fuel by ship but did not have specifics on propellants to be used. Ms. Conaway responded to Assemblymember Burt's concerns about the property in that the memorandum of agreement limited the total launch area to 150 -250 acres. She said the agreement stated that no toxins were to be used and assured the Assembly that Leisnoi, Inc. was covered by insurance. Assemblymember Gould asked if Assemblymember Austerman had a conflict of interest because he was a shareholder in Leisnoi, Inc. Assemblymember Austerman felt there was no conflict of interest because there was no immediate financial gain. Presiding Officer McFarland felt the resolution only supported considering the site. He added that if the site were chosen, a conflict of interest may arise during discussion of tax exemption. He ruled no conflict of interest. Assemblymember Gould felt that, as a stockholder, Assemblymember Austerman stood to gain financially. He accepted the rule of the chair but wanted the record to show that discussion took place. Charles Hamerle phoned to report that a proposed launch site in Hawaii was voted down because of environmental concerns. He understood that nuclear powered satellites were not considered for Kodiak but there were other concerns. Assemblymember Austerman held the philosophy that a reasonable tax exemption to new business expanded the economic base but felt the need to look closely. He said if there was a large profit potential, tax exemption was not necessary and suggested tax exemption with a sunset date. Assemblymember Milligan fully supported the launch facility and contended that the community in the future would thank Leisnoi, Inc. for pioneering the effort. He said Kodiak was competing in a world market and this was the first private launch facility in the United States. He understood no military -type Regular Assembly Meeting Volume XVIII January 25, 1994 Page 28 Noes: None VOTE ON MOTION TO ADOPT Ayes: GOULD, seconded by MONROE satellites, only communication satellites, would be launched, and Alaska offered a closer target distance to the polar orbit. He commended Leisnoi, Inc. for bringing the opportunity to Kodiak. Assemblymember Austerman apologized for not declaring his potential conflict of interest and stated he would be more careful in the future. Austerman, Burt, Gould, Hancock, Milligan, Monroe, McFarland MOTION CARRIED Unanimous After a ten minute recess at 8:43 p.m., Presiding Officer McFarland reconvened the regular meeting. ORDINANCES FOR C. ORDINANCES FOR INTRODUCTION INTRODUCTION 1. Ordinance No. 94 -03 Creating an Exemption ORDINA"CE From Property Taxes for Community Purpose NO -; 3 Organizations. Presented in first reading was Ordinance No. 94 -03 which, if adopted, exempted from property taxes organizations not qualified for property tax exemption under current state statutes. moved to advance Ordinance No. 94 -03 to public hearing on February 3, 1994. Mayor Selby explained that state statutes always required the Borough to send tax bills to organizations not categorized as religious, educational or charitable, and the new state assessor required compliance with the statute. He said the five organizations in the ordinance were community interest organizations and noted that the Assembly previously exempted the Kodiak State fair grounds. Assemblymember Austerman, as the Kodiak Island Convention and visitors Bureau executive director, explained that the exemption caused a $41.00 savings for the Bureau. He asked for a ruling on conflict of interest. Volume XVIII Regular Assembly Meeting Page 29 January 25, 1994 Assemblymember Gould announced that his wife was the Senior Citizens Center director and asked for a ruling on conflict of interest. Presiding Officer McFarland ruled no conflict of interest because the vote was to advance the ordinance to public hearing. He said conflict of interest would be reviewed prior to voting to adopt the ordinance. He ruled no conflict of interest. Assemblymember Burt announced he was a member of KISA. Assemblymembers Austerman and Monroe agreed that the organizations deserved tax exempt status. VOTE ON MOTION TO ADVANCE Ayes: ' 7 Burt, Gould, Hancock, Milligan, Monroe, Austerman, McFarland Noes: None MOTION CARRIED Unanimous il D. OTHER ITEMS 1. Confirmation of Planning and Zoning Commissioners. MONROE, moved to confirm seconded by AUSTERMAN Mayor's appointments of Renato B. Asuncion to the one -year Borough seat, Bruce Barrett to the three -year Borough seat and Jeff Knauf to the three -year City seat on the Planning and Zoning Commission. Assemblymember Gould was concerned that the Planning and Zoning commission was concentrated with developers. He felt developers point of view was good if taken from the perspective of implementing the comprehensive plan with zoning. He asked Mr. Knauf to take his statement into consideration when making decisions. Assemblymember Hancock felt that initially all commission members and elected officials had their own agenda but once serving they look at good of the community. She personally contacted people concerned OTHEr } EMS CONFIRMATION OF PLANNING & ZONING COMMISSIONERS Regular Assembly Meeting Volume XVIII January 25, 1994 Page 30 with environmental issues and asked them to participate. She was grateful that three people applied because the position was time consuming and demanding. She asked the public to remember that the Borough desperately sought people to fill vacancies, and if people wanted representation, to apply and make a commitment. Assemblymember Austerman thanked the applicants and agreed there was a great commitment of time. He said that if he were starting over, he would begin at the Commission level to build a background on zoning laws and understand more clearly the job of the Assembly. Presiding Officer McFarland thanked those appointed and those currently serving on the Commission. He asked Commissioners to ask questions and utilize staff. He said it was important to hear concerns because the Commission was a vital link in the pulse of the community regarding economic development and property planning. He agreed that there was a need for balance on controversial issues. He contended it was important to reach a quality product. VOTE ON MOTION TO CONFIRM Ayes: Noes: MOTION CARRIED 2. Appointment of Board and Committee Members. GOULD, seconded by MILLIGAN Presiding Officer McFarland commended those who applied. He said the committee was in turmoil and hoped for resolution soon. VOTE ON MOTION TO APPOINT Ayes: Regular Assembly Meeting January 25, 1994 Gould, Hancock, Milligan, Monroe, Austerman, Burt, McFarland None Unanimous moved to appoint Michael J. Machulsky, Wayne Stevens and Scott C. Schleiffer to three - year seats on the Airport Advisory Committee. Hancock, Milligan, Monroe, Austerman, Burt, Gould, McFarland APPOINTMENT OF BOARD AND COMMITTEE MEMBERS r AIRPORT ADVISORY COMMITTEE Volume XVIII Page 31 1 a Noes: None MOTION CARRIED AUSTERMAN, seconded by MONROE There was no discussion by the Assembly. VOTE ON MOTION TO APPOINT Unanimous moved to appoint James E. Carmichael to OF EQUALIZATION a three -year seat on the Citizens Board of Equalization. Ayes: Milligan, Monroe, Austerman, Burt, Gould, Hancock, McFarland Noes: None MOTION CARRIED Unanimous MILLIGAN, moved to appoint PARKS AND seconded by MONROE Melissa Robinson and RECREATION Forest Blau to three- COMMITTEE year seats on the Parks and Recreation Committee. At questions raised by Assemblymember Burt, it was pointed out that Forest Blau was an incumbent and was unavailable for interview due to being out -of -town. Assemblymember Austerman understood that the Assembly decided to interview all applicants prior to appointment. Presiding Officer McFarland explained the procedural precedent was to interview those applicants without a track record. He did not object to appointing an incumbent. Assemblymember Gould worked with Mr. Blau on the Parks and Recreation Committee over the years and believed he was interviewed prior to his first appointment. At his statement that the intent to interview was mindful of new Assemblymembers, Assemblymember_Burt voiced no objection to appointing Mr. Blau. CITIZENS BOARD Regular Assembly Meeting Volume XVIII January 25, 1994 Page 32 VOTE ON MOTION TO APPOINT Ayes: Noes: MOTION CARRIED GOULD, seconded by MILLIGAN HANCOCK, seconded by MILLIGAN There was no discussion by the Assembly. VOTE ON MOTION TO AMEND Noes: Noes: MOTION CARRIED AUSTERMAN, seconded by MILLIGAN Monroe, Austerman, Burt, Gould, Hancock, Milligan, McFarland None Unanimous moved to appoint PERSONNEL Clay R. Koplin to a ADVISORY BOARD three -year seat on the Personnel Advisory Board. Assemblymember Hancock noted that Craig Fanning, also an applicant, was an incumbent on the Personnel Advisory Board. moved to amend to appoint Craig Fanning to a three -year seat on the Personnel Advisory Board. Ayes: Austerman, Burt, Gould, Hancock, Milligan, Monroe, McFarland None MOTION CARRIED Unanimous VOTE ON MOTION TO APPOINT Ayes: Burt, Gould, Hancock, Milligan, Monroe, Austerman, McFarland None Unanimous moved to appoint _ Robert M. Hatcher to a three -year seat on the Woodland Acres Street Light Service Area Board. } WOODLAND ACRES STREET LIGHT BOARD Regular Assembly Meeting Volume XVIII January 25, 1994 Page 33 O There was no discussion by the Assembly. VOTE ON MOTION TO APPOINT Ayes: Noes: Gould, Hancock, Milligan, Monroe, Austerman, Burt, McFarland None MOTION CARRIED Unanimous 1. Kodiak Island Borough School District Special Meeting of January 3, 1994. 2. Architectural Review Board Meeting of December 29, 1993 and January 4, 1994. IATERIALSONAL required) INFORMATIONAL MATERIALS (No action MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS B. REPORTS REPORTS 1. Community Development Department October, November, and December 1993 Status Reports. C. OTHER None. CITIZENS' COMMENTS None. ASSEMBLYMEMBER COMMENTS Assemblymember Hancock attended AML where she heard a gloomy budget report but returned optimistic because Kodiak projects were known. She said it was important to be diligent through the budget process to ensure funding for the hospital and wastewater treatment plant projects. She said the governor spoke of government marching in partnership with communities. She stressed that with continued effort Kodiak had an opportunity to garner funds. Assemblymember Gould thanked those who applied for boards and commissions. He congratulated K.C. Mackie as student of the month and said it was good to have energetic students that strived for excellence. OTHER CITIZENS' COMMENTS Regular Assembly Meeting Volume XVIII January 25, 1994 Page 34 7 ! t! Assemblymember Burt was pleased that Leisnoi, Inc. continued a policy of moderation in their logging operation. He spoke of gloom and doom in that all were looking for funds, and he hoped that the budget process reminded people of the expected price of fish because Kodiak was a fishing community. Assemblymember Monroe was pleased to hear from the Leisnoi, Inc. representative and the fact that the Borough assisted the launch facility to move forward. She thanked those who applied for boards and commissions seats. She noted there were vacant seats on the Airport Advisory Committee and asked those interested to contact the borough clerk. Assemblymember Milligan attended AML and agreed there were budget troubles, but he was proud to represent a community that was in tune with the governor's program. He felt the fact that the bonds passed overwhelmingly indicated to legislators Kodiak's willingness to contribute to the partnership. He thanked Leisnoi, Inc. because he felt the launch facility was an exciting project for the community and the country. He congratulated Presiding Officer McFarland as the newly - elected president of SWAMC. He felt he had good comprehension of gulf fishing issues and it was very lucky to have him as president because he would do an excellent job. Assemblymember Austerman congratulated Presiding Officer McFarland and agreed he would do a great job. He considered Kodiak's fishing industry was tied to southwest Alaska and a need to keep the issues alive. Assemblymember Austerman attended AML and met with Health and Social Services Director Margaret Lowe, who was familiar with hospital needs in Kodiak. He noted that she complimented the mental health program in Kodiak and mentioned the need to remodel the Griffin Building. Assemblymember Austerman indicated a need to replace the building. He met with Shelby Stastny, Office of Management and Budget director, who was knowledgeable and supportive of Kodiak's need for a hospital, schools, water, sewer system and jail but who also was unsure of where funds would come from. He met with Department of Fish and Game Commissioner, Carl Rosier, regarding the concept of creating a fifth region. He was concerned that Kodiak personnel would be pulled to man the new office and cause a Regular Assembly Meeting January 25, 1994 r Volume XVIII Page 35 7 reduction in field staff. He agreed that one reason to create a fifth region office in Anchorage was to more closely direct the North Pacific Fisheries Management Council. He said the new director of the Alaska Marine Highway System, Greg Dronkert, administered the final preparation work on the new ocean going ferry that replaced the Tustumena when out of commission. He said Mr. Dronkert indicated that $85 million was set aside for completion but reanalysis was needed to cover costs. He understood there was talk of building a new higher speed vessel to supplement the Tustumena. He net with Pat Ryan, Governor Hickel's Chief of Staff, regarding the four dam pool, the ferry, and road building. He understood that Robin Taylor, Senate majority leader, attempted to move money earmarked for road projects in general and allocate the funds to specific road projects. Assemblymember Austerman contended that the hospital bond passed with the understanding that the state would pay half the cost. He was concerned that the Borough asked for $4 million from the state and the indication was it might not be there. He felt a lot of money was spent to purchase the new hospital site and over $800,000 was spent for the design study that was wasted. He voted in favor of the design and engineering contract for the hospital remodel and addition but, in hindsight, felt he made a mistake. He felt the Assembly was ahead of themselves and asked if there was a way to delay the contract to get a better feeling from the state on funding. In response to Presiding Officer McFarland's query, Mayor Selby stated the contract was signed and Prochaska was in Kodiak presently working on the design. He said the Borough had funds in hand to complete Phase I construction of the new building and completion of critical surgery, emergency, radiology and laboratory areas. He said the intent was to complete the facility by 1995 even without state funds. Presiding Officer McFarland related that the code was specific that rescinding was not appropriate if the contract was signed and let. Regular Assembly Meeting Volume XVIII January 25, 1994 Page 36 1 AUSTERMAN, seconded by BURT moved to ask the ATTORNEY'S attorney to take a look OPINION at the contract and see if there is a way we can postpone it until we can come up with some better figures from the state. Assemblymember Hancock had no problem supporting the motion but felt the phased project offered options. While at AML in Juneau, she spoke with Robin Taylor, Senate majority leader, who was desirous of building a hospital in Ketchikan and saw Kodiak as of benefit to that goal. She felt that despite budget constraints in Juneau, there was the opportunity to capture funds and felt that Mayor Selby had fall -back plans. She did not want to paint the Borough into a corner but argued that the phased project could be stopped at any time. Assemblymember Gould agreed with Assemblymember Hancock's comments and stated it was not the time to slow down. He felt the people spoke in favor of the bonds, and it was the Assembly's responsibility to move forward. He agreed that the project was phased to allow completion of critical needs with money from the bonds. He felt that Assemblymember Austerman's attempt to throw in a "monkey wrench" bordered on irresponsibility. Assemblymember Milligan did not favor the motion but did not characterize it as a "monkey wrench ". He felt discussion was worthwhile, given the state's financial status. He stated that strong language in the Alaska Constitution made it easier to depend on the money in the future. He felt it was the Borough's responsibility to get the project to the people and spoke well of staff responsibility and design of a bond that husbanded resources in such a way to be totally independent of state funds. He did not want to construe in any way that discussion should stop. Presiding Officer McFarland was adverse to moving backward. He thought the original hospital site was not properly planned when developed without analysis. He felt the vote in favor of the bonds was overwhelming and did not agree that the community was misled because funds from the state were not totally guaranteed. He contended that design work was needed to show the state that Kodiak was earnest. Volume XVIII Regular Assembly Meeting pa a 37 January 25, 1994 9 1 VOTE ON MOTION Assemblymember Monroe absolutely believed in the sale of the bonds because of the vote of the people. She felt the design of the hospital was phased and appropriate, not grand or expensive. She contended that the capital budget was not final and faith and patience were needed. Assemblymember Austerman felt that no discussion on an important issue bordered on irresponsibility. He agreed with Presiding Officer McFarland that sale of the bonds was what the public wanted but the next step was questionable. He felt that advertising promoting the bonds indicated that the state would fund half of the project. He felt it was credible to show good faith to the legislature but contended that over $1 million to buy property and $800,000 in planning and design was spent and anticipated state funds were not received. He felt the Assembly moved ahead too quickly and thought to slow down to make sure the state gave money before proceeding. He understood the project was phased, but contended that if funds were not received from the state, Kodiak faced another partially completed project. Presiding Officer McFarland respected Assemblymember Austerman's question and had no problem with discussion. He said that funds were in reserve for a fall back plan and felt there was a way to put the package together. He said he did not want to be held hostage by the state for Kodiak projects. Assemblymember Burt was concerned with the bottom dollar. He said the time was to put something off and utilize available money. Ayes: Hancock, Austerman, Burt Noes: Milligan, Monroe, Gould, McFarland MOTION FAILED 3 Ayes, 4 Noes At questions raised by Assemblymember Austerman, Presiding Officer McFarland stated that an assemblymember, with the concurrence of a second, could request an attorney's opinion. Assemblymember Austerman thanked the Assembly for listening. Regular Assembly Meeting Volume XVIII January 25, 1994 Page 38 Borough Clerk Approved: 02)17/94 ATTEST: MILLIGAN, seconded by GOULD VOTE ON MOTION TO ADJOURN MOTION CARRIED 4 ,7 I Presiding Officer McFarland agreed that issues needed discussion. He attended SWAMC and was proud to be elected president. He said he would take the position seriously as a Kodiak representative. For benefit of the listening audience, he gave a synopsis of the workings of SWAMC, including transportation, economic development and fisheries issues. He fully supported Assemblymembers attending SWAMC meetings. He added that SWAMC concentrated regionally on types of problems communities were facing. Presiding Officer McFarland announced the Assembly would meet in work sessions on January 27, 1994 at noon and 7:30 p.m. in the borough conference room, and regular meeting on February 3, 1994 at 7:30 p.m. in the assembly chambers. moved to adjourn. ADJOURNMENT Unanimous voice vote There being no further business to come before the Assembly, the meeting adjourned at 9:55 p.m. nit , ; 44 . ing Officer Regular Assembly Meeting Volume XVIII January 25, 1994 Page 39