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1996-12-19 Regular MeetingKODIAK ISLAND BOROUGH Regular Assembly Meeting December 19, 1996 A regular meeting of the Kodiak Island Borough Assembly was held December 19, 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 Pastor Earl Clark of the Community Baptist Church, followed by the Pledge of Allegiance. There were present: A. Robin Heinrichs, Tom Abell Bob Johnson Gary Stevens comprising a quorum of the Assembly; and Jerome M. Selby, Mayor Donna F. Smith, CMC /AAE, Clerk Linda Freed, Community Development Director APPROVAL OF AGENDA W. STEVENS, seconded by BONNEY VOTE ON MOTION TO APPROVE MOTION CARRIED APPROVAL OF MINUTES K.I.B. Assembly Meetings of November 7 and 26, 1996. BONNEY, seconded by W. STEVENS VOTE ON MOTION TO APPROVE MOTION CARRIED Regular Assembly Meeting December 19, 1996 Presiding Tuck Bonney Mike Milligan Wayne Stevens moved to approve the agenda. Unanimous voice vote moved to approve the minutes of November 7 and 26, 1996. Unanimous voice vote REGULAR MEETING ROLL CALL APPROVAL OF AGENDA APPROVAL OF MINUTES Volume XXII Page 66 AWARDS AND AWARDS AND PRESENTATIONS PRESENTATIONS A. Student of the Month STUDENT OF MONTH Mayor Jerome Selby presented the Student of the Month Award to Jennifer Clampffer, a junior at Larsen Bay School. CITIZENS' COMMENTS A. Agenda Items Not Scheduled For Public Hearing Gilbert S. Morelli spoke against a property tax increase as he favored a sales tax that was fair for everyone, not just home or business owners. He asked how acquisition of the Mark Air Terminal would affect everyone in the community. Cbris Kinter remembered when a resolution on the Mark Air Terminal failed. He was emphatic in not wanting to pay for the terminal. He wanted government to see there was a limit to overextending. There was a property tax increase last year, and he knew a mill rate increase, sales tax, and bed tax were discussed. He felt the Borough should stop trying to save the economy and, therefore, did not support the project. Mike Brechan did not favor the terminal project last year nor this year because it was a bad investment. He thought the terminal should be auctioned and not purchased and renovated by the Borough. He felt the worth of the terminal would not be determined until a bankruptcy auction. B. Items Other Than Those Appearing on the Agenda None. COMMITTEE REPORTS COMMITTEE REPORTS Assemblymamber W. Stevens reported that the Hospital Advisory Board was meeting with a candidate for the administrator position. It was hoped that an administrator would be hired within sixty days. Assemblvmember Milligan, Planning & Zoning Commission representative, reported that at the December 18 meeting the Commission postponed consideration of the proposed Leisnoi Log Transfer Facility. Fishing and logging industry representatives were in attendance. He noted that in the case of an appeal, only those who testified previously would be allowed to testify at the appeal. Also, the Commission would forward a Regular Assembly Meeting December 19, 1996 CITIZENS' COMMENTS Vo1unit. .:II Page 67 recommendation to the Assembly that one of the 1991- 1994 tax foreclosed parcels be retained by the Borough for public use, and that the other 13 parcels be placed on the list for the next Borough land sale. Assemblymember Abell reported the School District K -8 Housing Committee would hold an additional meeting before presenting their findings at a community meeting in January. PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. 1. Ordinance No. 96 -10B Amending Ordinance ORDINANCE No. 96 -10 Fiscal Year Budget for 1996 to Reflect NO. 96 -10B Mid -year Adjustments. Presented for consideration was Ordinance No. 96 -10B that, if adopted, amended the original budget deemed necessary as fiscal year 1997 approaches mid year. MILLIGAN, moved to adopt seconded by W. STEVENS Ordinance No. 96 -10B. MILLIGAN, seconded by JOHNSON VOTE ON MOTION TO AMEND BY SUBSTITUTION Ayes: Noes: MOTION CARRIED G. STEVENS, seconded by W. STEVENS Regular Assembly Meeting December 19, 1996 moved to amend Ordinance No. 96 -10B by substitution. The substituted version was available to the public. Mayor Selby explained the amendments to the budget by line item review. He recommended an additional amendment to add $20,000 for the BMX Track and increase interest income by $20,000. Abell, Bonney, Johnson, Milligan, G. Stevens, W. Stevens, Heinrichs None Unanimous moved to amend Ordinance No. 96 -10B by adding the BMX Track at $20,000 as project 146 under Capital Projects, increase Interest Earnings under Capital PUBLIC HEARING Volume XXII Page 68 In response to Assemblymember Milligan, Mayor Selby said four contractors would donate time and equipment to reduce the cost of the BMX Track project. Also, waste materials removed from the NIRF construction project would be used at the track, thereby helping reduce the cost of the project. The city of Kodiak voiced a willingness to participate. The insurance offered by the BMX Track Association was deemed adequate by the Borough's insurance carrier. VOTE ON MOTION TO AMEND Ayes: Noes: None MOTION CARRIED Unanimous VOTE ON MOTION TO ADOPT AS AMENDED Ayes: Noes: None Regular Assembly Meeting December 19, 1996 Projects by $20,000, and adjust the revised budget totals to reflect the amendments. Bonney, Johnson, Milligan, G. Stevens, W. Stevens, Abell, Heinrichs Presiding Officer Heinrichs called for public testimony; hearing and seeing none, he reconvened the regular meeting. At questions raised, Mayor Selby said the leases for NIRF space would be in place before authorization to sell the revenue bonds and start construction. Construction was expected to start in May. Johnson, Milligan, G. Stevens, W. Stevens, Abell, Bonney, Heinrichs MOTION CARRIED Unanimous 2. Ordinance No. 96 -22 Rezoning a 64.19 Acre Parcel ORDINANCE Within U.S. Survey 4657 ( Akhiok Watershed) from NO. 96 -22 R1- Single Family Residential To W- Watershed. Presented for consideration was Ordinance No. 96 -22 that, if adopted, rezoned the property surrounding the existing dam, water tank, and water lines in the Akhiok watershed to define and protect the watershed. Volume_ .i Page 69 JOHNSON, moved to adopt seconded by G. STEVENS Ordinance No. 96 -22. Mayor Selby noted the rezone was in response to the Assembly's request to rezone all of the village watersheds to create a buffer area to define and protect the water supply. Presiding Officer Heinrichs opened the public hearing. He said 27 public hearing notices were mailed with none returned. Seeing and hearing no public testimony; he reconvened the regular meeting. There was no discussion by the Assembly. VOTE ON MOTION TO ADOPT Ayes: Noes: None MOTION CARRIED Unanimous Milligan, G. Stevens, W. Stevens, Abell, Bonney, Johnson, Heinrichs 3. Ordinance No. 96 -23 Amending Kodiak Island ORDINANCE Borough Code of Ordinances Title 17 Zoning NO. 96 -23 Chapter 17.100 Appeals to the Board of Adjustment to Reflect the Assembly as the Board of Adjustment for the Kodiak Island Borough. Presented for consideration was Ordinance No. 96 -23 that, if adopted, amended the code to designate the assembly as the Board of Adjustment for the entire Kodiak Island Borough, in response to the Kodiak City Council's repeal of their Board of Adjustment procedures to no longer accept authority to act as a Board. of Adjustment within the city limits. JOHNSON, moved to adopt seconded by MILLIGAN Ordinance No. 96 -23. Mayor Selby said the code change designated the assembly as the Board of Adjustment for the entire Kodiak Island Borough as a result of recent actions by the city of Kodiak's council because they did not participate in the zoning process. Presiding Officer Heinrichs called for public testimony; hearing and seeing none, he reconvened the regular meeting. Regular Assembly Meeting December 19, 1996 Volume XXII Page 70 Assemblymember Johnson said that zoning was a Borough responsibility and the change seem appropriate. VOTE ON MOTION TO ADOPT Ayes: Noes: None MOTION CARRIED Unanimous OLD BUSINESS None. NEW BUSINESS A. AWARDS None. Regular Assembly Meeting December 19, 1996 G. Stevens, W. Stevens, Abell, Bonney, Johnson, Milligan, Heinrichs MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM MAYOR Mayor Selby announced that the Borough received a Silver Award from AML /JIA for continued efforts in loss control. He thanked volunteers who worked to make the BMX Track a reality. He acknowledged Tim and Kelly Haines for bringing the need to the forefront and for volunteering. The project was very positive for young people to ride under supervision. He defined education as the most important and the most expensive at $20 million. Discussion was needed to improve the quality of education, yet control costs. An education summit was scheduled in Kodiak on February 13. Topics would be quality in international competition, specifically math and science, and how families, students, and the community can work together and exchange ideas to enhance education and ways to pay for it. Mayor Selby wished everyone a merry Christmas and a healthy and prosperous new year. Responding to Assemblymember Milligan, Mayor Selby said that some windows at the Mental Health Center building were changed out to make egress appropriate. At Assemblymember Johnson's inquiry, Mayor Selby said AML /JIA risk assessments helped prevent accidents. OLD BUSINESS NEW BUSINESS CONTRACTS Volume hail Page 71 B. RESOLUTIONS RESOLUTIONS 1. Resolution No. 96 -37 Authorizing the Mayor RESOLUTION to Negotiate the Acquisition of the MarkAir NO. 96 -37 Terminal Building. Presented for consideration was Resolution No. 96 -37 that, if adopted, authorized the mayor to negotiate with the bankruptcy court and the Alaska Industrial Development Authority to determine an acceptable value for acquisition of the MarkAir terminal building and lease of the lot under the building. W. STEVENS, moved to adopt seconded by MILLIGAN Resolution No. 96 -37. Mayor Selby said the resolution was again before the Assembly at the request of the Airport Advisory Committee. The building was unoccupied for one year and private enterprise had not come forward to purchase it. Borough acquisition of the building seemed to partner with private enterprise to open new avenues of revenue. He stressed that adopting the resolution authorized a determination of price only. The decision to acquire the building would be made by the Assembly based on the computations for renovations and whether lease of space in the building would be financially feasible. Assemblymember G. Stevens considered this an appropriate step to begin the process. He emphasized this was not an agreement to purchase the building. There would be a public hearing before that decision was made. He noted the price of airfare was increasing and competition was healthy. Assemblymember W. Stevens said the Airport Advisory Committee could not make a recommendation for purchase without a purchase price. When Assemblymember Milligan asked about insurance coverage, connecting terminals, consolidating buildings, and possible leases of the space, Mayor Selby said the scenario was the same as previously. Assemblymember W. Stevens, Airport Advisory Committee chair, said the Committee showed interest in the airport facility for years. Government provides infrastructure for enterprise facilities such as docks, and air traffic should receive the same. The Committee would recommend purchasing the terminal only if it could pay for itself. The Coast Guard was Regular Assembly Meeting December 19, 1996 Volume XXII Page 72 interested in divesting the land to the state. There was the option of creating a total public transportation system in and out of the community. Responding to Assemblymember G. Stevens, Mayor Selby related the work that needed to be done during negotiations before submitting it to the Assembly. Assemblymember Bonney contended that entering into negotiations showed an intent to purchase. He had researched previous documents and felt the community was against the purchase. He was concerned about leasing space to Pen Air when they had no scheduled service from Anchorage to Kodiak. He felt there were other things needed and not the Mark Air Terminal. Assemblymember Milligan needed a compelling reason to not accept advisory board recommendations. He was not convinced the Borough should purchase the building but supported the resolution to investigate. Assemblymember Abell complimented Assemblymember Bonney on his comments but supported the resolution to determine if the project should be pursued. VOTE ON MOTION TO ADOPT Ayes: Noes: MOTION CARRIED 6 ayes; 1 no C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS 1. Appointment of Ex- officio Member to Airport Advisory Committee. W. STEVENS, seconded by MILLIGAN VOTE ON MOTION TO APPOINT MOTION CARRIED Unanimous voice vote Regular Assembly Meeting December 19, 1996 W. Stevens, Abell, Johnson, Milligan, G. Stevens, Heinrichs Bonney moved to appoint U.S. Coast Guard Commander Drew Dilks to an ex- officio seat on the Airport Advisory Committee. ORDINANCES FOR INTRODUCTION OTHER ITEMS APPOINTMENT TO AIRPORT ADVISORY COMMITTEE Volume AXE Page 73 2. Kodiak Island Borough Assembly Meeting Schedule for 1997. G. Stevens, seconded by MILLIGAN Goals and objectives work sessions had been scheduled for January 18 and 25 to set goals for the upcoming year and to submit recommendations to staff. VOTE ON MOTION TO APPROVE moved to approve the assembly meeting schedule for 1997 as presented. MOTION CARRIED Unanimous voice vote INFORMATIONAL INFORMATIONAL MATERIALS (No action required) MATERIALS A. MINUTES OF OTHER MEETINGS MINUTES OF OTHER MEETINGS REPORTS OTHER 1. Service District No. 1 Board Meetings of October 1, 29, and 31, 1996. B. REPORTS None. C. OTHER None. CITIZENS' COMMENTS Ken Lester telephoned to ask asked what "negotiate" on the Mark Air Terminal meant. Presiding Officer Heinrichs explained that negotiations would determine a sales price, and there were a number of steps needed before the actual sales price was determined. Mr. Lester continued by saying the Borough had no business being in the business to subsidize. Assemblymember W. Stevens pointed out there were vacancies on the Airport Advisory Committee and applications would be welcomed. Chris Kinter was under the impression that Providence would run the hospital. He was concerned about the hospital employees' pension fund because the fund had been frozen by the IRS for the last three years. At the request of Presiding Officer Heinrichs, Mayor Selby said he was aware of the IRS situation and was monitoring the situation to protect staff pensions. Regular Assembly Meeting December 19, 1996 APPROVAL OF ASSEMBLY MEETING SCHEDULE CITIZENS' COMMENTS Volume IOC Page 74 The final condition and highest priority with the Providence contract was a good employee benefit package. IRS was not an issue with the LHS contract because the funds were there and invested. The structure of the investment company meeting the pension plan was the issue, not the funds. Assemblymember W. Stevens noted that the Hospital Advisory Board was abreast of the situation. Mr. Kinter said he was not pointing a finger at LHS or the negotiations with Providence but that he felt the situation should be monitored. ABSEMBLYMEMBER COMMENTS ASSEMBLYMEMBER COMMENTS Assemblymember W. Stevens noted the Assembly was discussing school district funding. The public needed to be aware of the cost of education in Kodiak. The School District Long -Term Funding Task Force was appointed to bring forth options. He encouraged people to get involved to develop ways to change the focus on the education process. Assemblymember Milligan wished Jim and Susan Brenner well as they were moving away from Kodiak. He felt education was the most important thing to drive the economy. Although he heard negative comments on the endowment fund, he believed in his amendment. He wished the community members a merry Christmas. Assemblymember G. Stevens felt that Kodiak was an expensive community and all needed to do what they could to defray the cost. He was pleased with the action taken to negotiate, not purchase, the Mark Air Terminal. He intended to move slowly through the public hearing process. Assemblymember Johnson was proud of the community, non - profits, and the education system. He hoped people could be informed on how education money was spent and the options available. He desired that the public help make decisions. He recommended students learn to participate in order to be able to compete. Assemblymember Abell suggested residents serve on boards, commissions, and committees as a way to be heard. He wished all a merry Christmas. Presiding Officer Heinrichs saw Christmas as a time to be with families and at gatherings. Regular Assembly Meeting December 19, 1996 Volume Xr.,� Page 75 Presiding Officer Heinrichs announced the assembly would meet in a work session on Thursday, December 26 at 7:30 p.m. in the borough conference room and a regular meeting on Thursday, January 2, 1997 at 7:30 p.m. in the assembly chambers. 15. EXECUTIVE SESSION ATTEST: Adopted: O1 /16197 A. Bargaining Unit Negotiations. B. Kodiak Island Hospital Management /Lease Negotiations. G. STEVENS, seconded by MILLIGAN VOTE ON MOTION MOTION CARRIED Unanimous voice vote Presiding Officer Heinrichs noted that no action was anticipated following the executive session. At 9:20 p.m., Presiding Officer Heinrichs recessed the regular meeting to convene into executive session. At 10:25 p.m., Presiding Officer Heinrichs adjourned the executive session and reconvened the regular meeting. There being no further business to come before the Assembly, the meeting adjourned at 10:26 p.m. g onna F. Smith, CMC /AAE Borough Clerk Regular Assembly Meeting December 19, 1996 moved to recess the the regular meeting and convene into executive session to discuss bargaining unit negotiations and Kodiak Island Hospital management /lease negotiations. Robin Heinrichs Presiding Officer EXECUTIVE SESSION ADJOURNMENT Volume XXII Page 76