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1994-06-02 Special MeetingAbsent: GOULD, seconded by MONROE VOTE ON MOTION TO EXCUSE MOTION CARRIED EXECUTIVE SESSION MONROE, seconded by GOULD A is KODIAK ISLAND BOROUGH Special Assembly Meeting June 2, 1994 A special meeting of the Kodiak Island Borough Assembly was held June 2, 1994 in the Conference Room of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 12:05 p.m. There were present: Alan Austerman, Presiding John Burt Gordon Gould Suzanne Hancock Mary Monroe Jack McFarland Mike Milligan comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC, Clerk Assemblymember McFarland was out -of -town and asked to be excused. Assemblymember unable to be excused from work and asked excused. on business Milligan was to be moved to excuse Assemblymembers Milligan and McFarland. Unanimous voice vote moved to recess to executive session to consider insurance proposals in accordance with Kodiak Island Borough Code 3.16.110.E. Assemblymember Monroe anticipated no action as a result of the executive session. REGULAR MEETING ROLL CALL EXECUTIVE SESSION Special Assembly Meeting Volume XVIII June 2, 1994 Page 154 VOTE ON MOTION TO RECESS ATTEST: /tide s Borough Clerk Approved: 06/16/94 3 Ayes: Burt, Gould, Hancock, Monroe, Burt, Austerman Noes: None Absent: McFarland, Milligan MOTION CARRIED Unanimous At 12:07 p.m. the Assembly recessed into executive session. At 1:03 p.m. Deputy Presiding Officer Austerman reconvened the regular meeting. moved to adjourn. ADJOURNMENT MONROE, seconded by GOULD VOTE ON MOTION TO ADJOURN MOTION CARRIED Unanimous voice vote There being no further business to come before the Assembly, the meeting adjourn -. t 1:04 p.m. Officer Special Assembly Meeting volume XVIII June 2, 1994 Page 155 There were present: Jack McFarland Alan Austerman Gordon Gould Mary Monroe Suzanne Hancock MONROE, seconded by MILLIGAN VOTE ON MOTION TO AMEND Ayes: APPROVAL OF AGENDA AND CONSENT AGENDA .:a KODIAK ISLAND BOROUGH Regular Assembly Meeting June 2, 1994 A regular meeting of the Kodiak Island Borough Assembly was held June 2, 1994 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:31 p.m. The invocation was given by Envoy Craig Fanning of the Salvation'Army, followed by the Pledge of Allegiance. Presiding John Burt Mike Milligan (arrived 8:32 p.m.).' comprising a quorum of the Assembly; and Jerome Selby, Mayor Donna Smith CMC, Clerk Karl Short, Finance Director Linda Freed, Community Development Director Judi Nielsen, Deputy Clerk AUSTERMAN, moved to approve seconded by MONROE the agenda and consent agenda. moved to amend the agenda by moving Item 9. Public Hearing to follow Item 12. New Business. It was explained that Assemblymember Hancock was attending the 8th grade graduation of her son and requested the public hearing portion of the agenda be held at the end of the meeting when she would be present. Austerman, Burt, Gould, Milligan, Monroe, McFarland REGULAR MEETING ROLL CALL APPROVAL OF AGENDA AND CONSENT AGENDA Regular Assembly Meeting Volume XVIII June 2, 1994 Page 156 Noes: Absent: MOTION CARRIED.. None Hancock Unanimous Clerk Smith read the items for consideration under "Consent Agenda ". VOTE ON MOTION TO APPROVE AS AMENDED Ayes: Noes: Absent: MOTION CARRIED APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS A. Employee of the Month Burt, Gould, Milligan, Monroe, Austerman, McFarland None Hancock Unanimous Mayor Jerome Selby presented the Employee of the Month Award to John Mach, baler operator I /maintenance in the Engineering /Facilities Department. B. Proclamations Mayor Selby proclaimed June 12 - 18, 1994 Filipino- American Heritage Week, urging all citizens to participate in the festivities celebrating the rich heritage and traditions of the Philippine Islands. Jessie Vizcocho, Barangay Lions Club president, accepted the proclamation. Mayor Selby proclaimed June 14, 1994 Flag Day, urging the community to join with the annual "Pause for the Pledge" ceremony at Fort McHenry by reciting the Pledge of Allegiance at 7:00 p.m. EDT on Flag Day. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing Mike Rasmussen telephoned to speak to the upgrade of the sewage treatment plant. He felt Borough Regular Assembly Meeting June 2, 1994 APPROVAL OF MINUTES AWARDS AND PRESENTATIONc EMPLOYEE 01 �E MONTH PROCLAMATIONS FILIPINO - AMERICAN HERITAGE WEEK FLAG DAY CITIZENS' COMMENTS Volume XVIII Page 157 residents were overcharged for sewer service and questioned the amount of federal and state monies received for plant construction. He urged the Assembly to stand up to City demands. Presiding Officer McFarland understood that the figure on the amount of funds received was available. Mr. Rasmussen stated it was not equitable to allow residents to be financially abused. Kellie Law, Kodiak Public Broadcasting Corporation general manager, spoke to Resolution No. 94 -1 She said the $.10 per square foot lease increase and the addition of common areas impacted KMXT's operating budget by $5,500 per year. She felt it was a hefty increase all at once. B. Items Other Than Those Appearing on the Agenda Jessie Vizcocho, Barangay Lions Club president, shared a brief background of the migration of Filipino people into the United States and the important contributions of immigrants that he felt were taken for granted. He said each culture brought skills, accomplishments and food tastes. He accepted the proclamation with a feeling of pride. COMMITTEE REPORTS Assemblymember Milligan attended the Mental Health Center Advisory Board meeting where discussion centered around hiring a psychiatrist. He reported that the Board adopted a resolution supporting the hire and there was community concern, so he anticipated continued discussion. He said it was important for the community to understand the need for the position. Assemblymember Monroe, Kodiak College Council representative, reported that the Council made downward revisions to the budget because of cuts in state funding. She announced that some administration offices were open but classes were dismissed for the summer. COMMITTEE REPORTS MESSAGES FROM MESSAGES FROM THE BOROUGH MAYOR MAYOR Mayor Selby reported that the Minerals Management Service Lower Cook Inlet Lease Sale 149 was updated to not include any portion of the Shelikof Straits. He anticipated additional visits to communities adjoining the proposed property in coming months, including Kodiak, because the Barren Islands were within the Borough. He said the draft Environmental Impact Statement was scheduled to be available to the Regular Assembly Meeting Volume XVIII June 2, 1994 Page 158 public in November 1994, workshops would be held for three weeks, public hearing in December 1994 or January 1995, and the sale scheduled for spring 1995. He stated there was an indication that Governor Hickel intended to veto the reappropriation of funds for municipal assistance and revenue sharing. He said there was concern that the Governor would reduce the House Bill 441 appropriation, which was the main budget bill, and thereby increase the original cuts of 10 percent in excess of 15 percent. At Presiding Officer McFarland's questions regarding the impact of the Tri- Borough Position Paper on the Environmental Impact Statement, Mayor Selby stated that a letter of appreciation was received for the Paper but it was unknown if items would be specifically addressed in the Statement. He clarified that the Statement was basically re- written and if items addressed in the Paper were not included, there was an opportunity to spekk during public comment to ensure that issues were addressed. 1 2 1 When Assemblymember Milligan questioned whether it was appropriate for the public to respond to cuts in municipal assistance and revenue sharing, Mayor Selby urged the public to write encouraging Governor Hickel to sign the appropriation as presented. OLD BUBINEBB None. NEW BUBINEBB A. BID AWARDS 1. Contract No. 94 -05 High School Alterations, Phase IV -A GOULD, moved to award seconded by MILLIGAN Contract No. 94 -05 to Jay -Brant General Contractors of Homer, Alaska in an amount not to exceed $597,000. Mayor Selby explained that of the three bids received, Jay -Brant General Contractors was the low bidder. He recommended moving forward with the project. Assemblymember Austerman asked for an explanation of the two bids received from Jay -Brant General OLD BUSINESS NEW BUSINESS BID AWARDS CONTRACT NO. 94 -05 Regular Assembly Meeting Volume XVIII June 2, 1994 Page 159 Contractors. Mayor Selby explained that the second bid, faxed to the Borough the day of the bid opening, was the official bid. At Assemblymember Gould's concern that the recommended bid was considerably lower than other bids, Mayor Selby stated that the bid was reconfirmed and reliable. Assemblymember Austerman understood that Jay -Brant General Contractors completed phase I adequately. Mayor Selby stated the company was formidable and there was no concern that the project would not be completed satisfactorily. He clarified that the reconfirmation of the bid alleviated any apprehension, that something in the bid was missing. VOTE ON MOTION TO AWARD Ayes: Noes: None Absent: Hancock MOTION CARRIED Unanimous 2. Contract No. 94 -06 Insurance for Kodiak CONTRACT Island Borough, Kodiak Island Borough NO. 94 -06 School District, and Kodiak Island Hospital and Care Center for Fiscal Year 1995. MONROE, seconded by AUSTERMAN R Gould, Milligan, Monroe, Austerman, Burt, McFarland moved to award Contract No. 94 -06 to Alaska Municipal League Joint Insurance Association. Mayor Selby stated that three bids were received. He deferred to Karl Short, Borough Finance Director, to answer questions. Director Short explained that the Borough, in conjunction with Advanced Risk Management Techniques, Inc. (ARM -Tech, Inc.), a risk management consulting firm, prepared requests -for- proposals for a three year contract. He met with Jocelyn Zwiefelhofer, Kodiak Island Borough School District business manager, and Mary Munk, Kodiak Island Hospital and Care Center financial service administrator, to review the bids. He said that of the five companies approached, one failed to follow the conceptual Regular Assembly Meeting Volume XVIII June 2, 1994 Page 160 proposal, and after interviews were conducted, the field was narrowed to three companies. He felt that each company was reliable and would serve the Borough adequately but there was a large cost differential and the Alaska Municipal League Joint Insurance Association (AML /JI -A) was the lowest bidder. He Introduced Steve Kahn, ARM -Tech, Inc. representative. Assemblymember Milligan wondered what happened when a government entity was under - insured. Mr. Kahn illustrated that if coverage was $600,000, and a claim was $500,000, the Borough was liable for the additional $100,000. Assemblymember Gould was concerned about the financial responsibility of each company. Mr. Kahn explained that the rating applied to determine the quality and management ability of each company concluded that all three companies were financially sound. He said pools operated throughout the United States and that the AML /JIA pool anticipated coverage of all losses plus a cushion. Mayor Selby clarified that compared to the previous year, including the hospital, the savings were $275,000. At questions raised by Assemblymember Gould, Mr. Kahn recommended that the Borough stay with the same company for three to five years. Assemblymember Austerman understood that, of the three bidders, one was a local carrier and, although supporting local businesses was a factor, the decision was economically based on the difference in the bids. Assemblymember Gould understood that Sweeney Insurance included coverage that the other two did not. Mr. Kahn explained that all bids were different. He said, as an example, that AML /JIA did not cover sexual harassment or wrongful termination but coverage could be purchased, which he recommended reviewing. At Presiding Officer McFarland's question, Mayor Selby explained that only employment practices were not covered by AML /JIA and the added premium cost was $15,000. At questions raised by Assemblymember Monroe, Mayor Selby explained that, as was the case with any company, yearly adjustments to the annual premium was dependent upon claims. Regular Assembly Meeting Volume XVIII June 2, 1994 Page 161 Presiding Officer McFarland understood that dividends were returned to pool members if the pool prospered and asked what the time -frame was. Mr. Kahn stated that 1994 -95 dividends would be received in 1996 -97. Assemblymember Milligan asked Mayor Selby if a loss log was maintained. Mayor Selby explained there were always loss expenses that determined the rating and premium to build a record of loss history. Assemblymember Milligan questioned the effect of pools on the economy. Mr. Kahn explained that the AML pool was formed in the 1970s because insurance carriers cancelled insurance for government entities. He clarified, however, that insurance carriers currently provided insurance to government entities. VOTE ON MOTION TO AWARD Ayes: 5 Milligan, Monroe, Austerman,•Burt, Gould, McFarland Noes: None Absent: Hancock MOTION CARRIED Unanimous B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 94 -15A Amending Resolution RESOLUTION No. 94 -15 Increasing the Rental Rate for NO. 94 -15A Office Space in the Kodiak Island Borough Building. Presented for consideration was Resolution No. 94 -15A which, if adopted, adjusted the square footage per entity to incorporate common space. GOULD, moved to adopt seconded by MILLIGAN Resolution No. 94 -15A. Mayor Selby explained that the process of determining actual square footage usage per entity was more refined with the AUTOCAD system. He clarified that lease holders were not previously charged for common areas and square footage figures were adjusted to include common areas. Assemblymember Burt was curious why the increase was over a three -year period and was concerned about the disparity between government and the private sector. Mayor Selby explained that additional funds of Regular Assembly Meeting Volume XVIII June 2, 1994 Page 162 $100,000 per year were needed to recoup operating expenses and phasing the increase was easier on the lease holder. Assemblymembers Austerman and Gould were curious because they felt the cost per square foot was higher in the Borough building than in the private sector. Mayor Selby explained that the Borough building was heavily used and fully functional and variables in some private office space did not include electric, janitorial service, etc. Presiding Officer McFarland clarified that the $1.10 per square foot was previously approved and the question before the Assembly was the square footage. Assemblymember Monroe contended that Americans With Disabilities Act requirements added to Borough building operating costs. Assemblymember Hancock arrived at 8:32 pain. AUSTERMAN, seconded by MILLIGAN VOTE ON MOTION TO POSTPONE Ayes: Noes: MOTION CARRIED C. Presented which, if of $3,312 coveralls ORDINANCES FOR INTRODUCTION 1. 3 moved to postpone Resolution No. 94 -15A to June 16, 1994. Monroe, Austerman, Burt, Hancock, Milligan, McFarland Gould 6 Ayes, 1 No Ordinance No. 93 -10H Amending Ordinance No. 93 -10 Fiscal Year 1994 Budget Accepting State Grant Funds For Womens Bay Volunteer Fire Department. for consideration was Ordinance No. 93 -10H adopted, accepted grant funds in the amount for the purchase of radios, boots, and a floating pump. This item was advanced to public hearing on June 16, 1994 under "Consent Agenda ". 2. Ordinance No. 93 -10I Amending Ordinance No. 93 -10 Fiscal Year 1994 Budget Accepting Additional Day Care Assistance Grant Funds. ORDINANCES FOR INTRODUCTION ORDINANCE NO. 93 -10H ORDINANCE NO. 93 -10I Regular Assembly Meeting Volume XVIII June 2, 1994 Page 163 Presented for consideration was Ordinance No. 93 -10I which, if adopted, accepted grant funds in the amount of $59,780. This item was advanced to public hearing on June 16, 1994 under "Consent Agenda ". D. OTHER ITEMS 1. Resignation of Parks and Recreation Committee Member. MONROE, moved to accept, with seconded by MILLIGAN regret, the resignation of Parks and Recreation, Committee member Melissa Robinson, and direct the clerk to advertise the vacancy per borough code. Presiding Officer McFarland, Parks and Recreation Committee representative, appreciated Ms. Robinson's diligence while serving on the Committee. VOTE ON MOTION TO ACCEPT Ayes: Noes: fl None MOTION CARRIED Unanimous 2. Confirmation of Planning and Zoning Commissioner. Mayor Selby stated he was unable to contact the applicants and requested that the Assembly postpone the appointment to the next regular meeting. AUSTERMAN, seconded by MILLIGAN VOTE ON MOTION TO POSTPONE Ayes: Austerman, Burt, Gould, Hancock, Milligan, Monroe, McFarland moved to postpone confirmation of the Mayor's appointment of a Planning and Zoning Commissioner to June 16, 1994. Burt, Gould, Hancock, Milligan, Monroe, Austerman, McFarland OTHER ITEMS RESIGNATION OF PARKS AND RECREATION COMMITTEE MEMBER PLANNING AND ZONING COMMISSIONER CONFIRMATION Regular Assembly Meeting Volume XVIII June 2, 1994 Page 164 Noes: MOTION CARRIED AUSTERMAN, seconded by MILLIGAN VOTE ON MOTION TO APPOINT Ayes: Noes: AUSTERMAN, seconded by MILLIGAN None Unanimous 3. Appointment to Parks and Recreation Committee. Assemblymember Austerman stated that Mr. Walser, a Chiniak resident, was very active in the community. Gould, Hancock, Milligan, Mbnroe, Austerman, Burt, McFarland None MOTION CARRIED Unanimous moved to appoint Vincent A. Walser to a two -year seat on the Parks and Recreation Committee to expire December 31, 1995. 4. Resignation of Hospital Advisory Board Member. moved to accept, with regret, the resignation of Kodiak Island Hospital and Health Facility Advisory Board member Ben Ardinger, and direct the clerk to advertise the vacancy per borough code. Assemblymember Austerman thanked Mr. Ardinger for serving on the Board. Mayor Selby stated that Mr. Ardinger served on the Board with distinction for eight years and thanked him on behalf of the community. Assemblymember Milligan thanked Mr. Ardinger for working with the Board through volatile times and appreciated that he resigned during a period of stability. PARKS AND RECREATION COMMITTEE MEMBER APPOINTMENT RESIGNATION OF HOSPITAL ADVISORY BOARD MEMBER Regular Assembly Meeting Volume XVIII June 2, 1994 Page 165 Ayes: • VOTE ON MOTION TO ACCEPT Assemblymember Gould, as Assembly representative to the Board for three years, appreciated Mr. Ardinger's strong debate about health care and respected his humanitarian view in providing hospital care to the community. Presiding Officer McFarland appreciated that Board members were diligent and dedicated. Noes: None MOTION CARRIED Unanimous 1 Hancock, Milligan, Monroe, Austerman, Burt, Gould, McFarland After a ten minute recess at 8:45 p.m., Presiding Officer McFarland reconvened the regular meeting. 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. 94 -08 Amending Kodiak Island ORDINANCE Borough Code Title 17 Zoning to Include BHO -- NO. 94 -08 Boarding House Overlay Zoning District and SRO- - Single Resident Occupancy Development Standards. Presented for consideration was Ordinance No. 94 -08 which, if adopted, amended Title 17 Zoning to establish regulations for a Boarding House Overlay Zoning District and Single Resident Occupancy Development Standards to address the need for safe, affordable housing. MONROE, moved to adopt seconded by AUSTERMAN Ordinance No. 94 -08. Mayor Selby explained that, as a result of complaints about illegal boarding houses in residential areas, the Planning and Zoning Commission developed regulations that addressed the need for safe, affordable housing. He said a public hearing was held before the Commission and the regulations encouraged boarding house operators to conform with borough code. Regular Assembly Meeting Volume XVIII June 2, 1994 Page 166 Presiding Officer McFarland called for public testimony; hearing and seeing none, he reconvened the regular meeting. At questions raised by Assemblymember Austerman, Mayor Selby deferred to Linda Freed, Community Development Director. Director Freed stated the Commission recommended a strategy to implement enforcement and fees to bring boarding house operators into compliance. She said enforcement was difficult because, although structures met a required size, the number of residents was difficult to regulate because code allowed people related by blood or marriage. She said the Commission recommended increased enforcement rather than enforcement on a complaint basis. At Assemblymember Austerman's question as to whether an enforcement cost analysis was completed, Director Freed said there was no estimate of legal or court costs. Presiding Officer McFarland questioned the strategy and asked for information that included costs so the Assembly could review a complete package. Director Freed stated the Commission stopped short of preparing a cost analysis because the ordinance may not be adopted. Presiding Officer McFarland was concerned that the ordinance would be adopted at face value and subsequently find enforcement costs prohibitive. Director Freed said the Commission recommended more active enforcement to bring buildings up to minimal standards to safeguard public health and safety. Assemblymember Burt felt the rezone would not solve the problem because the problem would move somewhere else. He asked for closer Assembly review in work session. Assemblymember Austerman felt the concept of BHO in the R -1 zoning district was spot zoning. At further questions, Director Freed explained the intent was for the BHO zone to function as a zoning district overlay in an underlying zoning district. She clarified it was not the intent to overlay individual properties but look at an area that would be appropriate before going through a formal rezone procedure with public hearing before the Commission and the Assembly. She said once the BHO zoning was approved, an individual unit could not be converted to a boarding house unless a conditional use permit Regular Assembly Meeting Volume XVIII June 2, 1994 Page 167 Ayes: i AUSTERMAN, seconded by MILLIGAN VOTE ON MOTION TO POSTPONE Noes: Monroe was granted by the Commission after public hearing. She said appeal rights were available for those who were aggrieved by the Commission's decision. Assemblymember_Austerman asked how many boarding houses were in"the - Aleutian homes area and the procedure on applying for BHO zoning. Director Freed explained that a property owner could apply and the BHO zoning could be initiated by the Commission or the Assembly. She said Commission discussion centered around the impact of spot zoning and clarified that the Commission and Assembly had the ability to change the boundaries in a rezone. Assemblymember Gould felt the ordinance was not a solution to the problem but a tool to recognize a problem identified by the building inspectors. He said it placed a law on the books that was not specific. Assemblymember Austerman had concern about the effect of the enforcement recommendations and suggested additional Commission and Assembly review was warranted. Assemblymember Monroe appreciated the difficult decision but contended that considerable effort was expended to advertise and hold public hearings. Assemblymember Hancock did not want verbiage in the code that was not enforceable. Presiding Officer McFarland respected the Commission's recommendation but felt there was a need to fully understand the impact. He remembered that the impact of rural development zoning was not fully understood and the process was difficult. moved to postpone Ordinance No. 94 -08 to July 21, 1994. Milligan, Austerman, Burt, Gould, Hancock, McFarland MOTION CARRIED 6 Ayes, 1 No Regular Assembly Meeting Volume XVIII June 2, 1994 Page 168 B. Ordinance No. 94 -10 Levying Taxes on All Taxable ORDINANCE Real and Personal Property within the Borough NO. 94 -10 for the Expenses and Liabilities of the Borough for the Fiscal Year Commencing on the First Day of July 1994 and Ending on the Thirtieth Day of June 1995. (1995 Fiscal Year Budget) Presented for consideration was Ordinance No. 94 -10 which, if adopted, appropriated the level of all funds of the Kodiak Island Borough and established the mil rates of the Borough and service districts. AUSTERMAN, moved to adopt seconded by MILLIGAN Ordinance No. 94 -10. Mayor Selby recommended that the Assembly amend the ordinance by substitution prior to public hearing because the amended version balanced the budget. GOULD, seconded by MILLIGAN moved to amend Ordinance Nb. 94 -10 by substitution. Assemblymember Austerman advocated maintaining a one mil increase. Assemblymember Burt opposed more than a one mil increase and felt the need for fiscal responsibility. Assemblymember Hancock opposed more than a one mil increase. She understood that reduced raw fish tax was anticipated but contended that previous year -end adjustments exhibited more revenue than expected in the reserve fund. Assemblymember Milligan argued that the 1.25 mil increase serviced the bond indebtedness and questioned the ramifications if the debt service was not covered. He clarified that the increase raised the mil rate to 6.75 and the Assembly had not considered the budget lightly. He felt solid resources were coming through the community, and the 1.25 mil increase was reasonable considering the 1.3 mil needed to cover the bonds. Mayor Selby explained that the substituted version alleviated the need to amend the budget on a line -by- line basis. Assemblymember Gould figured that the additional .25 mils on a $100,000 home equated to $25.00 additional tax per year and was not inappropriate. Regular Assembly Meeting June 2, 1994 Volume XVIII Page 169 Ayes: 1 4 Assemblymember Hancock understood that the substituted version was clearer but questioned the concept of increasing taxes. Assemblymember_Austerman was concerned that the substituted version was not presented at 1 mil as previously amended. Assemblymember Gould reiterated that the substituted version balanced the budget. VOTE ON MOTION TO AMEND BY SUBSTITUTION Monroe, Austerman, Gould, Milligan, McFarland Noes: Burt, Hancock MOTION CARRIED 5 Ayes, 2 Noes Presiding Officer McFarland opened the public hearing. Chris Blackburn. Jim Blackburn and John Houser represented the Clean Lakes for Kodiak organization. Ms. Blackburn informed the Assembly that the Soil Conservation District received a grant from the Soil and Water Conservation Service to clean Potato Patch Lake as a model project on how to clean urban lakes. She stated the grant paid for an employee and technical assistance to prepare a work plan to improve the Lake. She explained that part of the employee's job was to assist in writing grants for additional federal and state funds. She said the question arose as to who would supervise the employee because the Soil Conservation District did not have an office. It was thought that the Borough would welcome an employee at no cost to the Borough. She said the long -range intent was to move the position to the Soil Conservation District. At questions raised by Assemblymember Austerman, Mayor Selby stated a three -way agreement between the Soil and Water Conservation Service, the Soil Conservation District and the Borough delineated the Borough to provide office space and employee supervision by the Borough Environmental Engineer. He explained that $14,000 was for salary and $10,000 was for administrative fees at no cost to the Borough. He said it was a three -month position that hopefully would be extended. Regular Assembly Meeting Volume XVIII June 2, 1994 Paae 170 ! Bud Cassidy, Clean Lakes for Kodiak member, phoned to state that the group was informed by the Soil and Water Conservation Service that grant funds were available to clean lakes. He said there was a $130,000 grant from the federal government, and the need was for the Borough to provide office space, recording, and accounting services. He felt it was an appropriate role for government as government built the infrastructure of the community. He said the goal was to clean all Kodiak lakes. At Assemblymember Austerman's confusion at the amount of funds received, Mayor Selby explained that the Soil and Water Conservation Service received a federal grant of $130,000 of which $24,000 was earmarked to clean Potato Patch Lake. Omar Stratmau, Kodiak Soil Conservation District vice - chairman, explained that the Soil and Water Conservation Service was administered by the U.S. Department of Agriculture. He added that'the Soil Conservation District was formed after the tidal wave and was agricultural in nature. He said the grant was under U.S. Law 566 and only two were received in Alaska. He said there was a potential for the employee to become a District employee. Dr. Keith Hediaer telephoned to state he liked the idea of creative solutions and problem solving. He felt it was a good idea to clean lakes but contended there was a need to be responsible to future generations and not create dirtier lakes. He felt it was a good idea because less expensive solutions were needed. He said it was important to focus on what was good for the people, not only what was good for the government. Dane Carros telephoned to question the fact that public comment was not taken prior to the vote to amend Ordinance No. 94 -10 by substitution. He recommended holding spending down, but if an increase was needed, limit the increase to 1 mil. John Houser, Potato Patch Lake resident, explained that the effort to clean the Lake was strictly volunteer, and the Borough was not responsible for funding. Curt Law, Ismailov Street resident, asked if the one mil increase specifically impacted the 1995 budget. Presiding Officer McFarland deferred to Mayor Selby who explained that it established a mil rate for fiscal year 1995 but impacted the true cost of Regular Assembly Meeting Volume XVIII June 2, 1994 Page 171 government for this year and the next two years. He said the 1.25 increase enabled the Borough to hold ground. Ed Mahoney telephoned to question what percent the 1.25 mil increase was and Mayor Selby explained that it represented a 20 percent increase. Mr. Mahoney objected to the increase. Presiding Officer McFarland clarified that 1.33 mils was needed for the bond indebtedness alone and that a decrease in operation funds reduced the increase to 1.25 mils. Petrina Peterson telephoned to speak against the 1.25 . mil increase and asked if other resources were available. Mayor Selby explained that state and federal funding were reduced, therefore, the Borough had to be self- sufficient. He said that during the budget process, options such as boat taxation and a Borough -wide sales tax were considered. He noted that the Borough had a severance tax. Assemblymember Milligan stated a mil increase was preferential to maintain funds in the fund balance. Assemblymember Burt felt that raising taxes was not the only way to balance the budget. Assemblymember Hancock concurred. Cheryl McNeil telephoned to state her opinion that voters approved the bonds and understood the need for additional funding and .a tax increase. She contended that since the bond debt was 1.33 mils, the increase of 1.25 mils was a bargain. Don Pozun telephoned opposing any increase. He asserted that property values, water and sewer fees and city sales tax were increased, and it was time to stop. Presiding Officer McFarland closed the public hearing and reconvened the regular meeting. Assemblymember Monroe felt the budget was carefully considered and favored the 1.25 mil increase. Assemblymember Milligan pointed out that, without the school bond, money was lost because of the foundation formula equation. He argued that a 1.25 mil increase on substantial items was conservative. He felt Kodiak was a dynamic community that continued to grow. Regular Assembly Meeting Volume XVIII June 2, 1994 Page 172 4 Assemblymember Burt felt that a healthy, viable government was needed but money meant nothing without the ability to buy. Assemblymember Austerman considered that community economic growth, government and private sector costs were increasing. He said there was a need to adopt a concept to reduce costs. He said the public would be satisfied if adequate services were received and costs reduced. Assemblymember Hancock felt the curse of government was the ability to tax and when taxes continued to increase there was no incentive to reduce costs. She contended it was necessary to spend carefully to maintain a healthy community. Assemblymember Burt felt the Clean Lakes Project was fitting because it placed money in the hands of the people, and he appreciated Borough support. Assemblymember Gould felt that government was all of the people and considered the need of the overall operation and health of the Borough. Presiding Officer McFarland noted the Assembly was obligated to look to the future to provide services, economic development and trade to the community. He was comfortable with a solid budget. Mayor Selby added that the bond debt represented a 1.25 mil increase that equated to a 400,000 reduction in revenue and a $500,000 reduction in operating costs. Assemblymember Austerman appreciated Mayor Selby's comments but contended there was a need to lower expenses. AUSTERMAN, seconded by HANCOCK Regular Assembly Meeting June 2, 1994 moved to amend Ordinance No. 94 -10 by eliminating $14,000 for airport snow removal, reducing the $50,000 lobbyist fee to $17,000 to cover the D. C. lobbyist and not the Juneau lobbyist, reduce legal services by $46,000 and use $100,000 of the fund balance for the needed increase. Volume XVIII Page 173 VOTE ON MOTION TO AMEND Ayes: Burt MOTION FAILED 1 Aye, 6 Noes BURT, seconded by AUSTERMAN VOTE ON MOTION TO AMEND Noes: Austerman, Gould, Hancock, Milligan, Monroe, McFarland moved to amend Ordinance No. 94 -10 by eliminating airport snow removal, reducing the $50,000 lobbyist fee to $17,000 to cover the D. C. lobbyist only reduce legal services by $46,000 and reduce the mil rate increase to one mil.'' Ayes: Burt, Hancock, Austerman Noes: Gould, Milligan, Monroe, McFarland MOTION FAILED 3 Ayes, 4 Noes VOTE ON MOTION TO ADOPT AS AMENDED BY SUBSTITUTION Ayes: Gould, Milligan, Monroe, McFarland Noes: Hancock, Austerman, Burt MOTION CARRIED 4 Ayes, 3 Noes INFORMATIONAL MATERIALS (No action required) A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. Womens Bay Service Area Special Board Meetings of March 14 and April 25, 1994. 2. Planning and Zoning Commission Meeting of April 20, 1994. 3. Mental Health Center Advisory Board Meetings of March 21 and April 20, 1994. INFORMATIONAL MATERIALS Regular Assembly Meeting Volume XVIII June 2, 1994 Page 174 B. REPORTS REPORTS 1. Kodiak Island Borough School District Revenue Report for April 1994. 2. Mental Health Center Director's Report for May 1994. C. OTHER OTHER 1. Chiniak Community Meeting Notes of May 15, 1994. CITIZENS COMMENTS Monte Hawver, St. Brother Francis Shelter director, thanked the Assembly for supporting the Shelter and other non - profit organizations. John Witteveen, Superintendent of Schools, thanked the Assembly for supporting the school district. Assemblymember Austerman thanked Superintendent Witteveen for his professional management style and for working with the Assembly towards a viable budget. ASSEMBLYMEMR t ASSENBLYMENBER COMMENTS COMMENTS Assemblymember Hancock attended the eighth grade graduation ceremony and felt it was appropriate to go from that event to this process because keynote speaker, Randy Bush, spoke of the 8th grade class, who as 6th graders, learned the process of problem solving and facing government when they pooled resources to purchase a 6th grade class bench that benefited future 6th grade classes. She said the speech assisted her because, although the Assembly was not in total accord, they worked together for the future of the community. Assemblymember Gould concurred with the comments of Assemblymember Hancock. Assemblymember Milligan was pleased with the successful Crab Festival but felt it was important to remember the real holiday, which was Memorial Day and the 50th anniversary of D -Day, as a celebration of those who served the country in war. He remembered Jackie Kennedy Onassis as a significant woman in American history. Assemblymember Austerman thanked Mr. Ardinger for his dedicated and valuable service to the Hospital Advisory Board. He urged all to be careful during CITIZENS' COMMENTS Regular Assembly Meeting Volume XVIII June 2, 1994 Page 175 the upcoming halibut opener. He congratulated the 8th grade graduating class. He thanked Mr. Vizcocho for his appropriate speech and expressed sorrow for the recent loss of two Filipino community members. He thanked the Assembly for their indulgence on budget discussions. Presiding Officer McFarland announced the Kodiak island Borough Assembly would meet in a work session June 9, 1994 at 7:30 p.m. in the borough conference room and a regular meeting June 16, 1994 at 7:30 p.m. in the assembly chambers. Presiding Officer McFarland thanked those who called to speak to the budget ordinance. He announced that seats on the Borough Assembly were coming vacant and welcomed those interested to run for office. AUSTERMAN, moved to adjourn. ADJOURNMENT seconded by MONROE VOTE ON MOTION TO ADJOURN MOTION CARRIED There being no further business to come before the Assembly, the meeting adjourned at 11:19 p.m. ATTEST: orough e orough Clerk Approved 07/07/94 Regular Assembly Meeting June 2, 1994 Unanimous voice vote Volume XVIII Page 176