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1996-03-07 Regular MeetingMcFARLAND, seconded by MILLIGAN VOTE ON MOTION TO EXCUSE MOTION CARRIED APPROVAL OP AGENDA Regular Assembly Meeting March 7, 1996 RODIAZ ISLAND BOROUGH Regular Assembly Meeting March 7, 1996 A regular meeting of the Kodiak Island Borough Assembly was held March 7, 1996 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 Steve Avery, Deacon at St. James the Fisherman Episcopal Church, followed by the Pledge of Allegiance. There were present: ROLL CALL Robin Heinrichs, Presiding John Burt Suzanne Hancock Jack McFarland Mike Milligan absent: Bob Johnson Gary Stevens comprising a quorum of the Assembly; and Jerome Selby, Mayor Judi Nielsen, Deputy Clerk Karieton Short, Director of Finance moved to excuse Assemblymembers Johnson and Stevens. Unanimous voice vote McFARLAND, moved to approve seconded by MILLIGAN the agenda. VOTE ON MOTION TO APPROVE MOTION CARRIED APPROVAL OP MINUTES None. Unanimous voice vote REGULAR MEETING APPROVAL OF AGENDA APPROVAL OF MINUTES Volume }CQ Page 60 AWARDS AND PRESENTATIONS A. Employee of the Month Mayor Jerome Selby presented the Employee of the Month Award to Jim Woitel, drafting technician in the Community Development Department. B. Budget Award Mayor Jerome Selby presented the Government Finance Officers Association Distinguished Budget Presentation Award for Fiscal Year 1996 To Karleton Short, Finance Director. Director Short commended Finance Department employees, Mayor Selby, and the Assembly for working together as a team. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing None. B. Items Other Than Those Appearing on the Agenda Chris Kinter spoke to his concerns for taxpayers debt and wondered how much the Borough owed. He knew that funds were expected from other entities, but felt the Borough was ultimately responsible. He said the Near Island Facility (NIRF) and the new hospital were a great debt and the cost to renovate the existing hospital was unknown. He received a letter from Representative Alan Austerman that indicated a state deficit of 5 mils. He wondered where the funds would come from when aid decreased and debt was still owed. COMMITTEE REPORTS Assemblymember Hancock reported good attendance at the first meeting of the Solid Waste Task Force. She said initially it seemed a monumental task that could create enough paperwork to fill the landfill. She expected a recommendation from the group. PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. A. Resolution No. 96 -03 Authorizing the Mayor to Negotiate the Acquisition of the MarkAir Terminal Building. Regular Assembly Meeting March 7, 1996 AWARDS AND PRESENTATIOF EMPLOYEE OF 'a.iE MONTH BUDGET AWARD CITIZENS' COMMENTS COMMITTEE REPORTS PUBLIC HEARING RESOLUTION NO. 96 -03 Volume XXI Page 61 Presented for consideration was Resolution No. 96 -03 that, if adopted, authorized the mayor to negotiate with the bankruptcy court and the Alaska Industrial Development and Export Authority (AIDA) for the acquisition of the MarkAir terminal building and lease of the lot where the terminal is located. The motion to adopt Resolution No. 96 -03 was before the Assembly. McFARLAND, seconded by MILLIGAN Regular Assembly Meeting March 7, 1996 moved to amend Resolution No. 96 -03 by adding Section 1 to read: "That prior to the return of the acquisition to the assembly, the mayor will meet with the Airport Advisory Committee, in executive session if necessary. The Airport Advisory Committee will then hold a public hearing. The Airport Advisory Committee will then give formal recommendation to the assembly. "; Section 2 to read: "Prior to the final public hearing of the assembly, a site visit of the MarkAir terminal building will be allowed for the assembly. "; Section 3 to read: "The assembly will hold a public hearing in which the final decision of whether or not to purchase the MarkAir terminal building will be made." Assemblymember McFarland felt more discussion was needed. In response to Assemblymember Burt, Mayor Selby said boards and committees follow the same guidelines as the Assembly and executive sessions were permitted. Assemblymember Milligan supported the amendment but did not support acquisition negotiations. He felt Volume XXI Page 62 citizen comments were split evenly and it was bad timing for the Borough. He wanted to see the Borough's debt total with the new school and the hospital. He saw interest in the youth and felt that residents would prefer to have an ice skating rink. VOTE ON MOTION TO AMEND Ayes: Regular Assembly Meeting March 7, 1996 Burt, Hancock, McFarland, Milligan, Heinrichs Noes: None Absent: Johnson, Stevens MOTION CARRIED Unanimous Deputy Presiding Officer Heinrichs opened the public hearing. Assemblymember Hancock asked for a staff report. Mayor Selby said Pen Air and Northern Air Cargo were interested in using the facility and Pen Air had a solid track record. He said the desire was to connect the two terminals and Alaska Airlines and ERA Aviation were in favor of that. He said purchasing the building with a loan from AIDA was less costly than bonding. He did not anticipate a need for additional Borough employees and the building would be under the Borough's insurance umbrella at a minimal cost. He received calls from large private enterprise groups that did not have funds to purchase the building. In response to Deputy Presiding Officer Heinrichs, Mayor Selby said the upstairs area had to be demolished and rebuilt, the downstairs needed minimal work, and the connection between the two terminals was needed. At questions raised by Assemblymember McFarland, Mayor Selby said the loan would come directly from AIDA and cash would be built into the fund to cover future repairs and maintenance. At Assemblymember Milligan's inquiry, Mayor Selby said funds would not be overstretched. He felt the competition with private enterprise was not the building but the airlines. He felt there was an opportunity to control ticket prices and, with 85,000 passengers yearly, the savings could be substantial. Volume XXI Page 63 Assemblymember Milligan noted that bonds were sold for Northstar Elementary School and the new hospital and he thought residents would be less enthusiastic about future projects if the building was purchased. Mayor Selby said there would be no tax impact because the building would be self supporting. He said the bonds for the NIRF were covered by a lease from the federal government. He did not see an impact to a skating rink in the future. Deputy Presiding Officer Heinrichs opened the public hearing. Chris Kinter said only Pen Air wanted to lease the building but Northern Air Cargo, who contracted with Pen Air, could not use the building without extensive remodeling. He thought ERA and Alaska Airlines supported the acquisition because of the access to facilities and rental cars. He said AIDA had a record of financing "white elephants ". He thought employees would be needed and it was no different if services were contracted out. He said reduced airfares meant less shopping in Kodiak. He said the Borough's enterprise funds caused tax increases. He noted that three employees at the dump increased to six and the temporary carpenter was now a full time employee. Ken Gordon spoke against the resolution because he felt Pen Air would not compete. He said the Borough was growing too fast and taking on too much debt. Vicki Kennedt telephoned to say that the building was in bad condition and she was opposed to the resolution. Wayne — Stevens, Airport Advisory Committee chair and Kodiak Chamber of Commerce Executive Director, said the building would be part of the infrastructure and negotiation was the only way to determine economic feasibility. He felt that leases would cover costs and taxes would not increase. He noted that Pen Air did not own the building they currently occupied. He surveyed Chamber members and three - fourths of those who responded favored bonding for the terminal. He said the number of airline passengers doubled in the past ten years and he thought more airline carriers would bring more travelers to Kodiak. Stacy Peterson phoned. She said she bid three times with AIDA to purchase the terminal but with the Borough involved, they could not compete. She did not want the Borough to be a landlord. Regular Assembly Meeting March 7, 1996 Volume XXI Page 64 Doug ratchely phoned. He said the terminal had great potential as a port -of- entry. He thought growth was needed and it was a mistake not to buy the terminal. In response to Assemblymember Milligan, Mr. Stevens said the hospital was a $65 million dollar a year industry that added to the economy. He felt lower air fares would bring more people to the community and hotels were begging for more people. He felt shopping opportunities were limitless with catalogs and computers. Mark Majdic phoned. He said he liked the feel of a small community. He thought the Borough was living beyond its means. He noted there were five half empty flights a day to Anchorage. Mr. Stevens remembered in years past when people said the sky was falling but the community continued to grow and thrive. He saw a trend for growth. Alex Peterson phoned. He said Pen Air and Alaska Airlines had a long- standing agreement not to compete on certain destinations and that included Kodiak. Mel Stephens considered the terminal an albatross. He was opposed because he did not want the Borough in the airport business. He felt taxpayers would have to pay the bill when funds were not available. He considered roads part of the infrastructure that were built only when needed. Charles Barber phoned to state his opposition. Deputy Presiding Officer Heinrichs closed the public hearing and reconvened the regular meeting. Assemblymember Hancock was opposed from the start. She referred to an Anchorage newspaper report that the FAA was promoting private control of airline terminals. She felt the Borough was not mandated to provide infrastructure. Assemblymember McFarland felt the Borough should provide infrastructure. As a 40 -year resident, he felt Kodiak was a wonderful community but he did not want it to become stagnant. He said all Borough schools were renovated in the past ten years and Kodiak's mil rate was one of the lowest in the state at 6:75 mils. He stressed that the resolution was only to secure information. Assemblymember Burt was also opposed from the start. He did not want more government control and contended Regular Assembly Meeting March 7, 1996 Volume XXI Page 65 that those who voted for bond issues did not always pay the taxes. Deputy Clerk Nielsen read a letter in opposition from Kelly Wakefield. Assemblymember McFarland read letters in favor from Assemblymember Johnson and Assemblymember Stevens. VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Heinrichs Noes: Burt, Hancock, McFarland, Milligan Absent: Johnson, Stevens MOTION FAILED 1 Aye, 4 Noes Assemblymember McFarland had changed his yes vote to a no vote and stated his intent to reconsider. After a ten minute recess at 9:10 p.m., Deputy Presiding Officer Heinrichs reconvened the regular meeting. MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby received the final draft of the statewide transportation improvement program for 1996 -1998 from the state. He said Selief Lane was in the five -year plan and other projects included were Dead Man's Curve, Otmeloi Way, Rezanof, and Kalsin Hill. He received a letter about library assistance from the City that would be discussed at joint Assembly/ Council work session as part of the capital budget. He reported that the hospital was 50% complete and that Prochaska and Associates were in Kodiak to finalize some work with McCarthy SDL. He said they continued to work toward a good quality product with a problem resolution approach. He said an additional $12 million was introduced by the Senate in Congress and Kodiak may receive extra Payment -in -Lieu of Tax funds. He said Governor Knowles was in town to meet with the public at the American Legion and the Betty Springhill Forum. He said the Forum spoke well of Ms. Springhill's esteem in the community. Regular Assembly Meeting March 7, 1996 Volume XXI Page 66 He appreciated healthy interaction. OLD BUSINESS None. NEW BUSINESS A. AWARDS None. B. RESOLUTIONS Presented for consideration was Resolution No. 95 -10B that, if adopted, met Alaska Public Offices Commission declaration to maintain Conflict of Interest Statements for six years and transferred six boxes of Kodiak Island Hospital records for retention at the hospital. MILLIGAN, moved to adopt seconded by BURT Resolution No. 95 -10B. VOTE ON MOTION TO ADOPT Ayes: McFarland, Milligan, Burt, Hancock, Heinrichs Noes: None Absent: Johnson, Stevens MOTION CARRIED Unanimous Presented for consideration was Resolution No. 95 -07C that if adopted increased the fee for large project quantities totalling 10 tons or greater to $100 to cover actual landfill processing costs. MILLIGAN, moved to adopt seconded by McFARLAND Resolution No. 95 -07C. Regular Assembly Meeting March 7, 1996 OLD BUSINES. NEW BUSINESS CONTRACTS RESOLUTIONS 1. Resolution No. 95 -10B Amending Resolution RESOLUTION No. 95 -01 Adopting a Records Retention NO. 95 -10B Schedule and Central Filing System. 2. Resolution No. 95 -07C Amending Resolution RESOLUTION 95 -07 Establishing Fees of the Kodiak NO. 95 -07C Island Borough. (Adjusting Landfill Metals Disposal Rates) K Volume XXI Page 67 Mayor Selby said the resolution incorporated disposal rates for autos and large quantity metal disposal. In response to Assemblymember Burt, Mayor Selby said fees would be waived during spring clean -up. Assemblymember Hancock announced that the Solid Waste Task Force met every Wednesday. VOTE ON MOTION TO ADOPT Ayes: Noes: Absent: MOTION CARRIED 3. Resolution No. 96 -06 Requesting that the RESOLUTION Governor and Legislature Cease Making NO. 96 -06 Disproportionate Cuts to Existing Municipal Revenues and Programs that Force Higher Local Taxes or Cuts to Basic Local Public Services. Presented for consideration was Resolution No. 96 -06 that, if adopted, requested that the legislature stop passing costs to local government, revise the municipal assistance and revenue sharing programs, and work with municipalities to start long range planning for financial management in the future. McFARLAND, seconded by MILLIGAN Mayor Selby said the need was stop passing costs so logical locally. VOTE ON MOTION TO ADOPT Ayes: Noes: Absent: MOTION CARRIED Regular Assembly Meeting March 7, 1996 Milligan, Burt, Hancock, McFarland, Heinrichs None Johnson, Stevens Unanimous moved to adopt Resolution No. 96 -06. for the legislature to decisions could be made Burt, Hancock, McFarland, Milligan, Heinrichs None Johnson, Stevens Unanimous Volume XXI Page 68 4. Resolution No. 96 -07 Urging the Governor RESOLUTION and Legislature to Adopt House Joint NO. 96 -07 Resolution Number 54 to Develop and Market Alaska North Slope (ANS) Gas. Presented for consideration was Resolution No. 96 -07 that, if adopted, supported development and marketing of Alaska North Slope Gas as an economic opportunity and impact to the State of Alaska. MILLIGAN, moved to adopt seconded by BURT Resolution No. 96 -07. Assemblymember Milligan served on the Cook Inlet Regional Citizens Advisory Council that tracked oil issues. He said the United States was a world power in natural gas because of proven reserves. VOTE ON MOTION TO ADOPT Ayes: Hancock, McFarland, Milligan, Burt, Heinrichs Noes: None Absent: Johnson, Stevens MOTION CARRIED Unanimous C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS None. INFORMATIONAL MATERIALS (No action required) A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS 1. Planning & Zoning Commission regular meeting of January 17, 1996. 2. Hospital Advisory Board meeting of January 10, 1996. 3. Mental Health Center Advisory Board meeting of January 22, 1996, Budget and Program Committee work session notes of Feb. 13, 1966. 4. Emergency Services Organization quarterly meeting of December 7, 1995. Regular Assembly Meeting March 7, 1996 ORDINANCES FOR INTRODUCTION OTHER ITEMS INFORMATIONAL MATERIALS Volume XXl Page 69 B. REPORTS REPORTS 1. Kodiak Community Profile for 1995 developed by the Economic Development Director and the Chamber of Commerce. 2. Mental Health Director's Report February 26, 1966, Clinical Program Director's Report for Jan -Feb 1966, and Business Program for February 1966. C. OTHER None. CITIZENS' COMMENTS None. ASSEMBLYMEMBER COMMENTS Assemblymember Milligan grew up in areas that had ice skating rinks. He said they were outdoor covered facilities and freezing temperatures allowed ice maintenance at a low cost. He heard comments supporting a convention center but felt that might burden the community. He envisioned a facility that associated good times with winter days. Assemblymember McFarland extended condolences to the family of Shirley Lee Andre. He wished Clerk Donna Smith's son Artie a speedy recovery. Deputy Presiding Officer Heinrichs saw good dialog at the joint Assembly /Council /School Board worksession. He felt it beneficial for the Assembly to meet with other Boards. Deputy Presiding Officer Heinrichs announced that the Assembly would meet in work session on Thursday, March 14 at 7:30 p.m. in the Borough conference room and a regular meeting on Thursday, March 21 at 7:30 p.m. in the assembly chambers. EXECUTIVE SESSION McFARLAND, seconded by MILLIGAN VOTE ON MOTION MOTION CARRIED Regular Assembly Meeting March 7, 1996 moved to convene into executive session to discuss legal matters relating to Peterson Elementary School. Unanimous voice vote OTHER CITIZENS' COMMENTS ASSEMBLYMEMBER COMMENTS EXECUTIVE SESSION Volume XXI Page 70 Deputy Presiding Officer Heinrichs announced that no action was anticipated as a result of the executive session. At 9:42 p.m. Deputy Presiding Officer Heinrichs recessed the regular meeting and convened the executive session. At 10:06 p.m. Deputy Presiding Officer Heinrichs reconvened the regular meeting. BURT, seconded by McFARLAND VOTE ON MOTION TO ADJOURN MOTION CARRIED Unanimous voice vote There being no further business to come - the Assembly, the meeting adjourne• at 10:0 ATTEST: Donna F. Smith, CMC /AAE Borough Clerk Approved: 03/21/96 Regular Assembly Meeting March 7, 1996 moved to adjourn. ADJOURNMENT G- y L. P esiding Officer Volume XXI Page 71