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1995-04-20 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting April 20, 1995 A regular meeting of the Kodiak Island Borough Assembly was held April 20, 1995 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 Envoy Craig Fanning of the Salvation Army, followed by the Pledge of Allegiance. There were present: ROLL CALL Mary Monroe, Presiding John Burt Suzanne Hancock Robin Heinrichs Jack McFarland Mike Milligan Gary Stevens comprising a quorum of the Assembly; and Jerome Selby, Mayor Karleton Short, Finance Director Donna Smith CMC, Clerk Judi Nielsen, Deputy Clerk APPROVAL OF AGENDA APPROVAL OF AGENDA STEVENS, moved to approve the seconded by McFARLAND agenda. VOTE ON MOTION TO APPROVE MOTION CARRIED Unanimous voice vote APPROVAL OF MINUTES A. K.I.B. Assembly Meeting of April 6, 1995. McFARLAND, seconded by STEVENS Regular Assembly Meeting April 20, 1995 moved to approve the minutes of April 6, 1995. VOTE ON MOTION TO APPROVE MOTION CARRIED Unanimous voice vote REGULAR MEETING APPROVAL OF MINUTES Volume XX Page 1 AWARDS AND PRESENTATIONS A. Student of the Month Mayor Jerome Selby presented the Student of the Month Award to Melissa Berns, a sophomore at Old Harbor School. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing Geoff Kennedy, Kodiak Public Broadcasting Corporation news director, spoke to Resolution No. 95 -15 that opposed House Bill 247. He understood the Bill required local communities to elect local representatives by geographic district and not at- large. It was his opinion that electing representatives at large was institutional racism. He thought geographic areas tended to have representation in clusters by ethnic groups. He added that electing by geographical area has brought more people of color in. He said Bethel was a small community where ethnic people were not the minority, but if elected at- large, fewer ethnic people would be in office. He asked the Assembly to address this problem and determine whether the Bill would eliminate people of color from holding office; therefore, inhibiting representation in Kodiak of people of color. Wayne Stevens, Airport Advisory Committee chair, reported that the Committee determined the need for improvements to the Coast Guard Base crash harbor ramp and the municipal airport gate and fence. He urged the Assembly to approve funding for the improvements. Will Walton, School Board member, spoke to Resolution No. 95 -15. He said the school district's request was $165,000 less than last year. He anticipated changes in state funding and noted that federal funding continued to decline. He appreciated the Assembly for supporting education. •?r. Bruce Johnson, school superintendent, gave a synopsis of fiscal year 1996 spending and estimated the difference between revenue and expenses was $2,443,882. He noted that federal aid was down by 15 percent and enrollment would stay the same. He was pleased that Northstar Elementary School would open. Regular Assembly Meeting April 20, 1995 AWARDS AND PRESENTATIO. STUDENT OF THE MONTH CITIZENS' COMMENTS Volume XX Page 2 He reported on negotiations with certificated and classified staff. He said there were uncontrollable costs of $104,000 that included employee step increases and the cost of business operation. He said the Board reviewed the budget and decided to reduce projected fiscal year 1996 costs by offering early retirement incentives. He said nine teachers and five classified employees opted for early retirement. He outlined the reduced and increased cost of programs. He felt the school district presented a responsible budget and advocated a reduced spending plan. Pete Probasco encouraged the Assembly to approve the Kodiak High School Phase IV -B 95% drawings. He recalled a meeting where the growing needs of Kodiak High School were discussed and it was determined that completing the remodel in one phase was difficult. He said the phasing process was time consuming but much was accomplished and the reality of what was ultimately envisioned was close at hand. He reviewed Architectural Review Board (ARB) notes, attended meetings, and was impressed at how thorough the Board was. pat Tabora, School Board member, said the proposed budget endorsed by the Budget Review Committee was a prudent request. She thought the budget was faced with uncertainties and she was proud that the school district maintained creative and innovative programs with reduced funds. She voiced her opinion that, although it was a tough choice, education was at stake and education affected all Kodiak children. COMMITTEE REPORTS 7d Myers, Kodiak Island Hospital administrator, presented an update of the hospital. He said the cash position was the best in ten years, with $1 million in the bank and 45 days operating cash. He said there was serious discussion to recruit one of three applicants for the psychiatrist position, however, the search for an orthopedic surgeon was difficult. He said the Health Care Foundation equipment drive was ongoing and SeaLand's offer to ship the equipment free from Seattle resulted in significant dollar savings. He reported that the hospital applied for a physical medicine grant from the Federal Rural Health Office. He said the grant was established ten years ago as a result of losing rural hospitals at the rate of ten per year. He said the grant encompassed a number of services but Regular Assembly Meeting April 20, 1995 COMMITTEE REPORTS Volume XX Page 3 basically established patient programs for case management of workers compensation programs including physical therapy and orthopedics. He said there was a break -down of services in the hospital budget package. He said there was a need to review workers compensation issues. Assemblymember McFarland was pleased with Prochaska & Associates' involvement in the hospital project and the possibility of moving faster than anticipated. He said it was exciting in that Kodiak residents would be proud of the final product because Prochaska was concerned with community needs. Assemblymember Heinrichs participated in a Coastal Zone Management Council teleconference regarding a tramway built at the ferry dock in Juneau. He said it was reminiscent of his Planning and Zoning Commissioner days. Assemblymember Stevens, ARB representative, attended his first meeting of the Board. He said Board members asked tough questions, studied the hospital and high school drawings carefully, and he anticipated an outstanding end - product. He appreciated the detail - oriented Board members. Presiding Officer Monroe reported that the Assembly traveled to Karluk and Larsen Bay for a work session. She said it was an opportunity to learn about their needs on pertinent water and school issues, and she enjoyed meeting the residents. 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 -10G Amending Ordinance ORDINANCE No. 94 -10 Fiscal Year 1995 Budget. (Day Care NO. 94 -10G Assistance Grant) Presented for consideration was Ordinance No. 94 -10G that, if adopted, amended the budget by accepting $816 for the Day Care Assistance Program. MILLIGAN, moved to adopt seconded by STEVENS Ordinance No. 94 -10G. Mayor Selby said the ordinance accepted $816 for the Day Care Assistance administrator to attend meetings. Regular Assembly Meeting April 20, 1995 Volume XX Page 4 Presiding Officer Monroe called for public testimony; hearing and seeing none, she reconvened the regular meeting. There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Burt, Hancock, Heinrichs, McFarland, Milligan, Stevens, Monroe Noes: None MOTION CARRIED Unanimous B. Ordinance No. 95 -03 Amending Kodiak Island ORDINANCE Borough Code of Ordinances Title 2 Chapter 2.45 NO. 95 -03 Architectural /Engineering Review Board. Presented for consideration was Ordinance No. 95 -03 that, if adopted, reduced the number of board members from nine to seven and specified voting members. MILLIGAN, moved to adopt seconded by McFARLAND Ordinance No. 95 -03. Mayor Selby said the ordinance restructured the board by reducing the number of voting members. He gave a background on changes in the intent of the Board and noted the importance of contributing Board members. Presiding Officer Monroe opened the public hearing. ,lean Barber, School Board member, agreed that the School Board representative not be a voting member. Assemblymember McFarland felt the reduced membership eliminated the problem of securing a quorum, did not preclude people interested in attending meetings, and maintained technical requirements. Presiding Officer Monroe closed the public hearing and reconvened the regular meeting. 'VOTE ON MOTION TO ADOPT Ayes: Regular Assembly Meeting April 20, 1995 Hancock, Heinrichs, McFarland, Milligan, Stevens, Burt, Monroe Volume XX Page 5 Noes: None MOTION CARRIED Unanimous C. Resolution No. 95 -06 Supporting the Lifting of RESOLUTION the Export Ban on Alaska North Slope (ANS) Oil, NO. 95 -06 Under Certain Conditions. Presented for consideration was Resolution No. 95 -06 that, if adopted, endorsed lifting the export ban of Alaska North Slope crude oil as long as Congress required shipping on United States tankers, the establishment of modern spill response depots in Kodiak, and continued support of citizen advisory councils in both Prince William Sound and Cook Inlet. The motion to adopt Resolution No. 95 -06 was before the Assembly. Mayor Selby said the issue was before Congress and the resolution provided valuable input. He noted it was important because Kodiak was currently on the list of those adamantly opposed to lifting the ban. He reported that Linda Freed, Community Development Department director, met with the Governor's staff. He understood that President Clinton was theoretically in favor of lifting the ban. He said approximately 60 percent of domestic oil was imported and it was costly to transport. He said it was a complex issue that impacted the national economy because it was a large part of the balance of trade. Assemblymember Milligan clarified that the ban was in place and this resolution supported lifting the ban with conditions. Presiding Officer Monroe opened the public hearing. Kristin Stahl - Johnson, Cook Inlet Regional Citizens' Advisory Council (CIRCAC) representative, clarified that CIRCAC had not stated a position for or against lifting the ban. She said she would not speak for or against lifting the ban but asked the Assembly to consider the facts surrounding the issue. She said British Petroleum (BP) was the only company that requested to ship oil from the Trans Alaska Pipeline System (TAPS) to overseas and because it was not a U.S. corporation, BP had an economic advantage. She thought lifting the ban could cause an economic disadvantage to Americans. She said BP was not a U.S. corporation and could not own tankers so under the Jones Act they lease their vessels. She reported Regular Assembly Meeting April 20, 1995 Volume XX Page 6 that the Eastern Lion spill in the Port of Valdez was caused by a crack in the oil containment hold while the vessel was chartered to BP. She said it was difficult to determine who was liable for the spill because vessel owners and transporters were hard to identify. She said that under Alaska law, only shippers and owners were responsible. She had concern about wording in the last whereas of the resolution pertaining to prevention and response. She said Alyeska was required by State law to respond to oil spills but Kodiak was left out of specific requirements. She noted that prevention was left out of the resolution and that was the most important issue. She said CIRCAC completed an internationally acknowledged study on how to control tankers in wind and rain conditions. She said the study supported the need for tractor tugs and BP had a stalling tactic in that it's risk assessment study was five to six years down the road. She said many of the vessels were very old and the pastern Lion incident was small but could have been bigger. She felt 80 percent of oil spills were caused by human error. She thought the community should review the current situation and recognize that Kodiak was not adequately protected. Assemblymember Milligan understood the $2 -4 was based on a belief that a lot of oil was going through the Panama Canal. He asked Ms. Stahl- Johnson if it was an argument of semantics in that Alyeska was supposed to cover oil spills. Ms. Stahl- Johnson replied that Alyeska was responsible for oil but once it was outside Prince William Sound, Alyeska claimed they were not responsible. She reported that the Alaska Department of Environmental Conservation (DEC) could not advise who was responsible for the Barren Islands and Kodiak district. At Assemblymember Milligan's question of inserting the word adequately between not and recovery, Ms. Stahl- Johnson said that would be appropriate. At the request of Assemblymember McFarland, Director Freed said the meeting with the Governor and Lt. 'Governor to identify environmental issues surrounding lifting the ban was attended by a large cross - section of people. She said Charles Logsdon of the Department of Revenue clearly supported lifting the ban because Alaska was singled -out as a state not allowed to exercise free trade. She said items of Regular Assembly Meeting April 20, 1995 Volume XX Page 7 concern were identified as transportation, ballast, pipeline, vapor recovery, quality of tankers, spill response and the impact of spill response. She said it was clear that the only company interested in transporting oil was BP because they did not have to comply with regulations. She said it was the consensus of the group to review lifting the ban and the process in which it was lifted. She was preparing three resolutions to present to the Assembly for on the tanker ban position paper, budget package for oil spill response in Kodiak and coastal management plan for Lease Sale 149. When Assemblymember McFarland suggested reactivating the Outer Continental Shelf (OCS) Committee, Director Freed indicated members felt recommendations should be made at a grass -roots level. At further questions, Director Freed said she did not speak with federal representatives but indications at the meeting were that delaying was not a problem. She said it was apparent that the ban would not be lifted unless vessels were flagged as U.S. vessels. Presiding Officer Monroe closed the public hearing and reconvened the regular meeting. Assemblymember Milligan felt it was a controversial issue but a more tenuous situation was that the yearly profit margin for BP of approximately $1 million could be a source of revenue for Alaska from the sale of oil to Japan. He thought timeliness was important because the issue would be before Congress in May. Assemblymember McFarland felt the issue was beyond the expertise of the Assembly. He respected Assemblymember Milligan's knowledge as a past member of CIRCAC but he was concerned with the message the Assembly was sending. He was concerned about Kodiak but felt there were several issues that needed to be resolved in a specific order. He thought there were problems with the resolution and he was not prepared to make intelligent amendments. He was concerned that it would not meet the needs of the community and without input from a committee the Assembly would be 'stymied. He felt the need to put things in order and postpone the resolution to a reasonable time to allow review by a committee. He noted the lack of response to public hearing notices from village mayors or fishing groups. Regular Assembly Meeting April 20, 1995 Volume XX Page 8 At questions raised by Assemblymember Stevens, Mayor Selby said he understood time was limited because it was out of the Senate committee and Senator Murkowski intended to place it on the floor in May and Representative Young had held the first committee hearing. He agreed with Assemblymember Milligan's assessment that it would be before Congress in May and that input was needed at the committee level. At Assemblymember Burt's inquiry, Mayor Selby said he had not received correspondence from Soldotna and Kenai and was not aware that those communities were taking part. He thought Kodiak had more of a vested interest because of results outside the Hinchinbrook Entrance. He said the main concern was inside Prince William Sound and he did not see that lifting the ban would change the impact to Kodiak. He said good things had happened since the Fxxon Valdez oil spill in that the risk of spills was reduced. Assemblymember Hancock felt it would be economically advantageous to the State if the ban was lifted. She thought activating a committee to prepare a report was not conducive because the need was to clarify Kodiak's position. Assemblymember Milligan agreed with Assemblymember Hancock. MILLIGAN, seconded by HANCOCK Noes: None MOTION CARRIED Unanimous Regular Assembly Meeting April 20, 1995 moved to amend Resolution No. 95 -06 by adding the word: "adequately" between the words "not" and "covered" in the final WHEREAS. Assemblymember McFarland felt it was a mistake to adopt the resolution even with the amendment. VOTE ON MOTION TO AMEND Ayes: Heinrichs, McFarland, Milligan, Stevens, Burt, Hancock, Monroe Volume XX Page 9 McFARLAND, seconded by BURT VOTE ON MOTION TO POSTPONE Regular Assembly Meeting April 20, 1995 moved to postpone Resolution No. 95 -06 for six weeks and ask the presiding officer to ensure that the OCS Committee is reactivated to review and critique and prepare an analysis and recommendation to be distributed to mayors and fisheries groups. Assemblymember McFarland respected Senator Murkowski but asked the Assembly to put the issue in perspective. Assemblymember Milligan felt that if the issue occurred specifically at the request of Senator Murkowski, then caution was appropriate but he did not feel that was the case. He said the school district budget was tied to the price of oil and affected our daily lives. He did not oppose postponement but thought six weeks was too long. Assemblymember Heinrichs wanted to see a report on the abstract environmental concerns, economic impact to the State, and a list of concerns for Kodiak. Assemblymember Stevens felt it was economically important because it appeared the State would receive roughly $140 million from the transportation of oil. Ayes: McFarland, Burt, Heinrichs Noes: Milligan, Stevens, Hancock, Monroe MOTION FAILED 3 Ayes, 4 Noes MILLIGAN, moved to postpone seconded by STEVENS Resolution No. 95 -06 to the May 4, 1995 regular meeting. Assemblymember Hancock agreed with postponing the resolution so a committee could address the issues and provide additional information. Volume XX Page 10 At the request of the Assembly, Mayor Selby said staff would research the issue and gather information. Presiding Officer Monroe felt it was a difficult issue and agreed research was needed. VOTE ON MOTION TO POSTPONE Ayes: Milligan, Stevens, Burt, Hancock, Heinrichs, McFarland, Monroe Noes: None MOTION CARRIED Unanimous After a ten minute recess at 9:21, Presiding Officer Monroe reconvened the regular meeting. MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby announced that the annual spring clean -up sponsored by the Chamber of Commerce was Saturday, May 6. He said that from May 6 - 20, scrap metals and junk vehicles would be accepted at the landfill free of charge to residential customers and at 50 percent off for commercial and industrial businesses. He -said the landfill was open from 10:00 a.m. to 4:00 p.m. daily and asked residents to separate household waste from hazardous waste, to roll -up their sleeves, and help clean -up the Island. He referred to a graph and gave a synopsis of the budget with expenditures at $70 million. He outlined the hospital budget, school district budget, Borough general fund, service district budgets and capital improvement projects that included the hospital, Northstar Elementary School, Ouzinkie School and Kodiak High School. He said the school district was the largest recipient. He outlined revenue from property taxes, severance tax, and the federal government which he said had decreased because of the payment -in -lieu of tax program. He said the cost of Borough operation had been steady and declining and outlined specific department operations. He projected the fiscal year 1997 budget would be reduced to $8.5 million due to the sale of Shuyak Island. He said that did not take into account decreases in State funding and that was at risk. He Regular Assembly Meeting April 20, 1995 Volume XX Page 11 announced that department heads would meet with the Assembly at the May 11 work session and non - profits at the May 16 joint assembly /council work session. At questions raised by Assemblymember Burt, Mayor Selby said the Borough carpenter was hired strictly for capital projects and once projects were complete, the position was eliminated. He said it was a cost - savings to hire a carpenter rather than hire under contractual arrangement. He clarified that the carpenter position was the only Borough position of that nature. When Assemblymember Milligan asked for a worse -case scenario, Mayor Selby said that since a ten percent reduction in revenue assistance and revenue sharing was anticipated, although the Senate anticipated a five percent reduction, the budget presented a worse - case scenario. At Assemblymember Burt's inquiry, Mayor Selby explained that by tightening belts and working smarter with resources, Borough operating costs were reduced. OLD BUSINESS OLD BUSINESS None. NEW BUSINESS NEW BUSINESS A. BID AWARDS BID AWARDS 1. Contract No. 95 -10 Audit Services for the CONTRACT Kodiak Island Borough, Kodiak Island NO. 95 -10 Borough School District, and Kodiak Island Hospital and Care Center. STEVENS, seconded by McFARLAND Regular Assembly Meeting April 20, 1995 moved to award Contract No. 95 -10 for audit services to Deloitte & Touche LLP At the request of Mayor Selby, Karl Short, Borough Finance Director, stated that although both firms presented good proposals, Deloitte & Touche LLP was more management oriented. At the request of the Assembly, Director Short outlined that the Borough contracted with Price Waterhouse for three years and when Price Waterhouse left Alaska, Deloitte & Touche LLP retained the Volume XX Page 12 accounts and many of the the Borough for the past 12 -year Borough employee recommendation to retain firm was an asset to the achievement certificates rate on the bond sales. teamwork approach. At questions raised by Assemblymember Burt, Director Short said the firm's main function was to audit the Borough but also assisted in management information. VOTE ON MOTION TO AWARD Ayes: Noes: MOTION CARRIED Unanimous B. RESOLUTIONS Regular Assembly Meeting April 20, 1995 employees and contracted to two years. He said he was a and this was the first the same firm. He said the Borough in receiving high and securing a high interest He said the firm had a Stevens, Burt, Hancock, Heinrichs, McFarland, Milligan, Monroe None 1. Resolution No. 95 -15 Approving the Fiscal Year 1996 Kodiak Island Borough School District Budget and Determining the Total Amount of Funds to be Made Available From Local Sources. Presented for consideration was Resolution No. 95 -15 that, if adopted, accepted the fiscal year 1996 Kodiak Island Borough School District budget in the amount of $20,100,650 and instructed staff to ensure that the local appropriation was included in the fiscal year 1996 Kodiak Island Borough budget. MILLIGAN, moved to adopt seconded by McFARLAND Resolution No. 95 -15. Mayor Selby said the school district presented a fiscal year 1996 budget of $20,100,650 with a total local appropriation of $4,150,000. He noted that State statutes required approval by April 30. At questions raised by Assemblymember Milligan, Mayor Selby said the local appropriation for next fiscal year did not affect the mil rate because the budget was balanced with the general fund balance. He said the fund balance should be kept at $2 million and there was an anticipated increase to $7 million to RESOLUTIONS RESOLUTION NO. 95 -15 Volume XX Page 13 the end of the year so a mil increase was not expected. Assemblymember Milligan regarded that past Superintendent Witteveen provided a diverse range of teachers and nurturing process that was the profile of the teaching staff. He said Superintendent Johnson provided a new profile in that experienced teachers were retiring and new teachers hired. Dr. Bruce Johnson, Superintendent of Schools, was asked to respond to questions. Dr. Johnson compared Kodiak with other school districts in that the average salary was $50,000 per year, most had Masters Degrees and 54 hours towards Bachelors Degrees, which, meant Kodiak had better qualified teachers at no increased cost. Dr. Johnson added that the cost to the school district for retirement was 11 to 12 percent and overall benefits were 18 - 19 percent, with classified employee costs at 20 percent. He said the school district went out to bid with a broker for health insurance and he was encouraged that benefits were negotiated with Blue Cross to maintain current benefits at no increased cost. He said the emphasis was on maintaining wellness. At Assemblymember Burt's inquiry, Dr. Johnson said federal funding was decreasing but he did not anticipate eventual zero funding. When Assemblymember Burt reiterated his concern at an inevitable increase in the mil rate, Dr. Johnson concurred but contended it would remain fair and equitable to all residents. Assemblymember Burt was concerned about IFQ's and potential mil increase in three years. Dr. Johnson conditioned that the State paid large funds for education in the past and that might change in the future. Assemblymember Stevens was concerned that senior teachers were replaced with less experienced teachers to reduce costs. At his question, Dr. Johnson outlined that funds were allocated to honor annual step increases. He added that it was policy to hire the best teachers available. Assemblymember Heinrichs served on the Budget Review Committee and appreciated the school district's concentrated effort to present an understandable budget. He was impressed that Dr. Johnson provided Regular Assembly Meeting April 20, 1995 Volume XX Page 14 information to the Committee timely and made reductions that enhanced efficiency but did not cut programs. He considered, however, that increasing the budget without increasing taxes in effect decreased the Borough's savings account. He was nervous about maintaining that type of spending without raising the mil rate. He reviewed the capital improvement projects and the pessimistic news from the Capitol and felt the Borough was entering a precarious position of continued use of the Borough's savings account. HEINRICHS, moved to amend seconded by HANCOCK Resolution No. 95 -15 by reducing the total local appropriation from $4,150,000 to $3,975,000. Assemblymember Heinrichs clarified his motion in that reducing the appropriation maintained funds in the budget for Northstar Elementary School. He anticipated a dramatic decrease in federal funding and thought the Assembly should be cautious. Assemblymember Burt reiterated his contention that there was a potential need to increase the mil rate. He noted complaints about the assessed value of property and thought there was a serious problem. Assemblymember Hancock felt it was a question of being prudent for the future. She said Alaska had the largest number of children under the age of five so the need was to look to the future of education. She anticipated cuts in federal funding and felt the Borough should trim spending. Assemblymember Milligan was concerned with education funding and thought it a worthwhile investment. He felt Assemblymember Heinrichs amendment was a compromise. He was concerned about the change in the trend of education nationally. Assemblymember McFarland supported the amendment. He thought concerns were raised and addressed, and he supported a solid budget fund balance. He felt there was a problem with enticing senior teachers to retire because qualified teachers and assets to students were lost. He contended there were no frills at any of the schools. Regular Assembly Meeting April 20, 1995 Volume XX Page 15 Presiding Officer Monroe appreciated the candid effort of school administration. She said the Borough made a commitment to voters that taxes would not raise for three years. Although she was concerned that if the legislature decreased the foundation formula and the budget would need to be adjusted, she would support the amendment. VOTE ON MOTION TO AMEND Ayes: Noes: None MOTION CARRIED Unanimous Burt, Hancock, Heinrichs, McFarland, Milligan, Stevens, Monroe McFARLAND, moved to amend seconded by MILLIGAN Resolution No. 95 -15 by increasing the local contribution $25,000. Assemblymember McFarland explained his amendment in that he anticipate other phased construction and he thought the Assembly was responsible to fund maintenance and operation. At questions raised by Presiding Officer Monroe, Mayor Selby said the High School Phase IV -B was fully funded and the need was to fund maintenance and heating costs. Assemblymember Stevens remembered that the Assembly had no line -item power and the school district controlled the expenditure of funds. Assemblymember Burt considered there would be a two mil increase if the budget was approved as presented. Assemblymember Milligan felt that discussion was not appropriate to the amendment discussion. VOTE ON MOTION TO AMEND Ayes: Noes: Regular Assembly Meeting April 20, 1995 McFarland, Milligan, Monroe Hancock, Heinrichs, Stevens, Burt Volume XX Page 16 MOTION FAILED 3 Ayes, 4 Noes Assemblymember Milligan said it was hard to predict the future of fishing but he thought some aspects would improve. At questions raised by Assemblymember Milligan, Mayor Selby said the sale of Shuyak Island would not impact fiscal year 1996 but he anticipated there would be $500,000 available in fiscal year 1997 and roughly $6- 700,000 available in fiscal year 1998. He said funds could be set aside for maintenance of school facilities, remodel expenses and bonded indebtedness. He said the funds would provide a cushion and free -up funds in the general fund balance. Assemblymember Burt asked the Assembly to keep in mind that the funds from the sale of Shuyak Island were a one time receipt. He said funds should be used to lower taxes, and if used for school maintenance, lower property taxes should be reflected. Presiding Officer Monroe felt the budgeting process was a large responsibility and the budget could be supported by revenues, not increasing taxes. Assemblymember Burt wondered where funds would come from in the future. At questions raised by Assemblymember Milligan, Dr. Johnson said the Borough's contribution was in the middle of the funding window required by State statutes. Assemblymember McFarland watched the budget process closely and noted the school district had genuine reductions. He felt Kodiak had an excellent educational system and he did not want to see education deteriorate. He agreed with Assemblymember Burt that there was a potential need for a mil increase in the future but that was not necessarily negative. He did not want to see a decline in senior teachers but also felt that new, young teachers could provide a spark. He appreciated the school district's approach. VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Regular Assembly Meeting April 20, 1995 Heinrichs, McFarland, Milligan, Stevens, Hancock, Monroe Volume XX Page 17 Noes: Burt MOTION CARRIED 6 Ayes, 1 No 2. Resolution No. 95 -16 Opposing House Bill RESOLUTION 247 Relating to the Election of Municipal NO. 95 -16 Governing Bodies by Single - Member Districts. Presented for consideration was Resolution No. 95 -16 that, if adopted, opposed the proposed legislation in House Bill 247 to diminish the local option of districting for purposes of electing local officials. McFARLAND, moved to adopt seconded by BURT Resolution No. 95 -16. Mayor Selby said the Bill required single member districts throughout Alaska and he felt single member districts in Kodiak would cluster neighborhoods and disenfranchise the minority population. He noted that 1,200 voters were needed to create a district. He said that, by ballot, voters decided whether to have single member districts or at -large districts and it was important to maintain that option. When Assemblymember Hancock said that securing the necessary number of voters would destroy the solidarity of the villages, Mayor Selby responded affirmatively. Clerk Smith clarified that boundaries were determined by the Department of Justice and all municipalities and first and second class cities were also required to adhere. She said most Kodiak villages had 5 -7 council members and boundaries would have to be stringent. Assemblymember Stevens thought Geoff Kennedy's comments about institutional racism was a jolt. He clarified that the assembly, school board and city council were elected at- large. He clarified that a vote every three years was a step back. He anticipated a problem in that if the assembly, council and school district had their own districts, there was the potential for overlapping and a division of the community. He did not like the thought of institutional racism. Regular Assembly Meeting April 20, 1995 Volume XX Page 18 VOTE ON MOTION TO ADOPT Ayes: Noes: None MOTION CARRIED Unanimous C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS 1. Kodiak High School Alteration Phase IV -B 95% Drawings. McFARLAND, moved to approve the seconded by MILLIGAN Kodiak High School Alteration Phase IV -B 95% Drawings. Mayor Selby explained this was the final phase of a five -year process that encompassed the wrestling room storage area, six classrooms, bathrooms, code upgrades and generator. He said the ARB reviewed the drawings and bids would go out tomorrow if approved. At questions raised by Assemblymember Burt, Mayor Selby said this phase was the last of four phases that increased space to accommodate a 900 student population. He said the only way to expand was through the shop areas and the intended expansion was complete. He added that this phase eliminated the original contract and noted that Phase IV was split to accommodate the budget. Assemblymember McFarland said his questions were answered when he participated in a walking tour of the high school, and he felt the public would benefit from a walking tour. There was general discussion about the intended use of the wrestling room. Assemblymember McFarland said he originally raised concerns about the amount of money spent on the project. He reiterated his suggestion that people take a walking tour if they were concerned about the amount of money spent. Regular Assembly Meeting April 20, 1995 McFarland, Milligan, Stevens, Burt, Hancock, Heinrichs, Monroe ORDINANCES FOR INTRODUCTION OTHER ITEMS KHS ALTERATION PHASE IV -B 95% DRAWINGS Volume XX Page 19 Assemblymember Stevens felt it was a wonderful process that allowed the school board, ARB, the superintendent and assistant superintendent to make recommendations for a exemplary finished product. VOTE ON MOTION TO APPROVE Ayes: Noes: MOTION CARRIED Unanimous McFarland, seconded by MILLIGAN Mayor Selby said the improvements were recommended by the Airport Advisory Committee. At questions raised by Assemblymember Heinrichs, Mayor Selby explained the improvements allowed repair of the deteriorating ramp for easy access. Assemblymember Burt was confused that Borough funds would be spent on Coast Guard projects. He wondered what the Borough would receive in return and asked if the money was previously allocated to snow removal. Mayor Selby explained that snow removal was furnished by the State Department of Transportation. He said the new ramp would be included in the 20 -25 year lease. Assemblymember Burt contended the Coast Guard and State were responsible for their projects. VOTE ON MOTION TO APPROVE Ayes: 2. Airport Advisory Committee Expenditure Recommendation for Improvements to the Coast Guard Base Crash Harbor Ramp and for the Municipal Airport Gate and Fence. Regular Assembly Meeting April 20, 1995 Milligan, Stevens, Burt, Hancock, Heinrichs, McFarland, Monroe None moved to approve a $7,000 expenditure for improvements to the Coast Guard Base crash harbor ramp and a $7,000 expenditure for the Municipal Airport gate and fence. Stevens, Hancock, Heinrichs, McFarland, Milligan, Monroe COAST GUARD BASE CRASH HARBOR RAMP AND MUNICIPAL AIRPORT GATE AND FENCE Volume XX Page 20 Noes: Burt MOTION CARRIED 6 Ayes, 1 No 3. Kodiak Island Borough Hospital and Health Facilities Advisory Board Vacancy. STEVENS, seconded by McFARLAND Mayor Selby wished condolences to the family of Bettye Springhill. He felt there was a loss to the community because Ms. Springhill was an ardent hospital advisory board member. Assemblymember Stevens expressed the Assembly's appreciation for her years of service and many contributions. VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous 1. Parks and Recreation Committee Regular Meeting of March 14, 1995. 2. Health and Safety Committee Meeting of April 6, 1995. 1. Kodiak Island Borough School District Regular Meeting of March 27, 1995 Summary Report. 2. Report to Economic Development Committee. Regular Assembly Meeting April 20, 1995 moved to declare a vacancy on the Hospital Advisory Board and direct the clerk to advertise the vacancy per borough code. Burt, Hancock, Heinrichs, McFarland, Milligan, Stevens, Monroe KIH ADVISORY BOARD VACANCY INFORMATIONAL INFORMATIONAL MATERIALS (No action required) MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS B. REPORTS REPORTS Volume XX Page 21 C. OTHER None. CITIZENS' COMMENTS }gym Wooten, School Board member, recognized the statutory responsibility to fund education. He did not always agree with the Assembly but appreciated the time dedicated to the budget. He outlined previous education projects funded by the Assembly and appreciated their support and hoped for continued cooperation to educate children. At 11:30 p.m. per borough code, a motion was in order; to extend the meeting. McFARLAND, seconded by MILLIGAN VOTE ON MOTION TO EXTEND MOTION CARRIED ASSEMBLYMEMBER COMMENTS Regular Assembly Meeting April 20, 1995 moved to extend the meeting to 12:00 midnight. Unanimous voice vote Presiding Officer Monroe announced that the Assembly would meet in a work session in Akhiok and Old Harbor on April 27th. If weather precludes travel to Akhiok and Old Harbor, the work session would be held in the borough conference room at 7:30 p.m. The Assembly will meet in a regular meeting on May 4th at 7:30 p.m. in the assembly chambers. Assemblymember Milligan was glad to be back from vacation. He appreciated Sue Jeffrey's articles on electrical issues in the Kodiak Daily Mirror. Assemblymember Stevens remembered David Jaynes as a well -loved teacher and important part of the Kodiak College community. Assemblymember McFarland congratulated Melissa Berns as the Student of the Month. He appreciated her extraordinary accomplishments and displays of leadership in the community. He congratulated Wayne Stevens as the new chair of the Hospital Advisory Board. He said the Assembly met with the teacher and two others in Karluk and had a work session in Larsen Bay. He announced he would be out next week and OTHER CITIZENS' COMMENTS ASSEMBLYMEMBER COMMENTS Volume XX Page 22 apologized to the residents of Akhiok and Old Harbor because he would not accompany the Assembly to those communities. EZECUTIVE SESSION 1. Legal Issues McFARLAND, seconded by HEINRICHS moved to convene into executive session to discuss legal issues. The Assembly invited Scott Arndt, Service District No. 1 chair, and Earl Smith, Service District No. 1 Board member, to participate in the executive session. VOTE ON MOTION MOTION CARRIED Unanimous voice vote At 11:35 p.m. the Assembly convened into executive session. At 12:00 midnight, Presiding Officer Monroe reconvened the regular meeting. MILLIGAN, moved to extend the seconded by McFARLAND meeting to 1:00 a.m. EXECUTIVE SESSION VOTE ON MOTION TO EXTEND MOTION CARRIED Unanimous voice vote The Presiding Officer reconvened the executive session. At 12:41 a.m. Presiding Officer Monroe reconvened the regular meeting. BURT, moved to adjourn. ADJOURNMENT seconded by McFARLAND VOTE ON MOTION TO ADJOURN MOTION CARRIED Unanimous voice vote Regular Assembly Meeting April 20, 1995 Volume XX Page 23 There being no further business to come before the Assembly, the meeting adjourned at 12:42 a.m. ATTEST: Borough Clerk Approved: 05 /04/95 Regular Assembly Meeting April 20, 1995 Presid' g Off ice ' Volume XX Page 24