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2009-07-16 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting July 16, 2009 A regular meeting of the Kodiak Island Borough Assembly was held Thursday, July 16, 2009 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 Sergeant Major Dave Blacketer of the Salvation Army. Deputy Presiding Officer Branson led the Pledge of Allegiance. Present were Deputy Presiding Officer Pat Branson, Assembly members Jerrol Friend, Judy Fulp, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Clerk Nova Javier, and Deputy Clerk Marylynn McFarland. KAPLAN moved to excuse Mayor Selby who was attending the NACO Conference and Assembly member Jeffrey who was out on personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA AND CONSENT AGENDA STUTES moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS Manager Gifford presented the Employee of the Quarter Award to Teresa Medina, Cashier in the Finance Department. CITIZENS' COMMENTS Roxanne Salcido, Environmental Coordinator for the Native Village of Afognak, spoke on the importance of the recycling program provided by Threshold Services, Inc. Emil Norton and Gretchen Saupe spoke in support of the Senior Citizens of Kodiak, non - profit agencies, and thanked the Assembly for financial support. Marian Johnson and Bonnie Dillard spoke in support of recycling in Kodiak. Nick Troxell, owner of Nick's Auto Wrecking Salvage and Metal Recycling, spoke about specific language in the Recycling Process Request for Proposal (RFP). Margie Jaskovich spoke in support of the Threshold contract and a ban on fireworks. Maggie Rocheleau spoke in support of the bond ordinances and the Threshold contract. Lisa Polito, Mary Forbes, Eric Enqvall, Rachel Nummer, Jennifer Richcreek, Rhonda Maker, Linda Himmelbloom, Sylvia Panzarella, Stephanie Love, and Jennifer Polley spoke in support of the Threshold contract. Kodiak Island Borough Assembly Minutes July 16, 2009 Page 703 Karen Yashin spoke in support of recycling, non - profits, and the Humane Society of Kodiak. Iver Malutin spoke in support of education, the bond ordinances, and recycling. Melissa Borton, Bill Watkins, Steve Doerksen, Nick Watkins, Jessica Rauwolf, Clair Brodie, Joe Floyd and Joe Mendoza spoke in support of the bond ordinances. Mike Milligan spoke in support of recycling and non - profit organizations. Geneneiva Pearson spoke in support of the bond ordinances, recycling, and a stop light at Birch and Mill Bay Road. Mel Stephens spoke against the bond ordinances and the indebtedness that they would incur, and questioned the cost estimations and the current school district coffers. Bob Brodie and Maggie Ingve spoke in support of recycling and the bond ordinances. Scott Williams spoke in support of the bond ordinances and addressed the issue of the school district's cost estimation, in that every step possible had been taken to bring the reconstruction and remodel of the high school to this stage of development. Cheryl McNeil spoke against the Threshold contract questioning the cost ratios. Heather Peterson voiced her support of recycling and did not support the bond ordinances. Petal Ruch spoke in support of the bond ordinances addressing the multi - functional uses of the high school building which included an emergency evacuation site. Ellen Simeonoff spoke in defense of the Recycling Services RFP that was submitted by Threshold Services, Inc. and spoke in support of the bond ordinances. COMMITTEE REPORTS Assembly member Kaplan reported that the Parks and Recreation Committee was in negotiations for the Master Trails Plan and it should be before the assembly for approval in the very near future. PUBLIC HEARING A. Ordinance No. FY2009 -01 E Amending Ordinance No. FY2009 -01 Fiscal Year 2009 Budget by Amending Budgets to Account for Various Revenues that are Over Budget, Provide for Additional Expenditures, Budget New Projects, and Move Funds Between Projects. FRIEND moved to adopt Ordinance No. FY2009 -01 E. Ordinance No. FY2009 -01 E was for the fiscal year end budget adjustments. In the General Fund, the Miscellaneous line item in the revenue section of the General Fund was increased by $67,000.The "use of fund balance" in the General Fund was decreased by $69,000. The School District Support Department was decreased by $84,000. Transfers out was increased by $272,000; $62,000 was for increased costs in the School Buildings Department in the Building and Grounds Fund and $210,000 was for hospital parking. In the Building and Grounds Fund School Buildings Department, expenditures were expected to exceed the budget by $70,000. A new department entitled School Building Major Maintenance was created and budgeted at $12,000. The Womens Bay Road Service District expenditures exceeded it's budget by $6,006. The Bay View Road Service District expenditures exceeded it's budget by $4,670. Kodiak Island Borough Assembly Minutes July 16, 2009 Page 704 The Borough needed to amend the debt service budget to account for the refunding of the 1998 bond issue. The Borough closed certain completed projects at the end of FY2009 and this ordinance moved the unexpended funds to other projects. The Borough cancelled certain projects and this ordinance moved the unexpended funds to other projects. The Borough received a $2,500,000 grant to repair and pave the roads in Service District Area No. 1, a $130,000 grant for school supplies and equipment, a $125,000 grant from the Denali Commission for an island wide transportation study, and expected to receive a $100,000 grant from the State of Alaska Department of Transportation for an island wide transportation study. The Borough was reimbursed $3,236,143 by the State for the Borough's Seismic projects, the proceeds of which would be used for other Borough projects. Clerk's Note: Between the introduction and the public hearing, there were changes proposed by staff and it was necessary to amend the ordinance by substitution. KAPLAN moved to amend Ordinance No. FY2009 -01 E by substitution. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Branson, Friend, Fulp, Kaplan, Lynch, and Stutes. Deputy Presiding Officer Branson opened the public hearing. Seeing and hearing none, Deputy Presiding Officer Branson closed the public hearing. ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend, Fulp, Kaplan, Lynch, Stutes, and Branson. B. Ordinance No. FY2010 -02 Amending the Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.40 Records Management, Chapter 2.50 Borough Clerk, Section 2.50.020 Duties, and Chapter 2.55 Engineering and Facilities Department, Section 2.55.010 Engineering and Facilities Department Director. STUTES moved to adopt Ordinance No. FY2010 -02. The existing Records Management code was put in place in 1975 with minor changes in 1979 and 1998. Staff determined the need to bring it into compliance with recent and existing laws and regulations. The old KIBC 2.25.200 was repealed in its entirety and a new Chapter 2.40 was established. The new chapter included policies that reflected industry best practices. Staffs research and proposal considered Alaska Statutes, codes from other municipalities, and consultation with Borough staff and Borough Attorney. Deputy Presiding Officer Branson opened the public hearing. Seeing and hearing none, Deputy Presiding Officer Branson closed the public hearing. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Kaplan, Lynch, Stutes, Branson, and Friend. BOROUGH MANAGER'S REPORT Manager Gifford reported on the following: • New pool expected to be completed in August. • Bids for Woodland Acres paving project were due July 21 and would be awarded by July 30, 2009. • Borough project updates were available on the Kodiak Island Borough website. Kodiak Island Borough Assembly Minutes July 16, 2009 Page 705 • He would be out of the office July 24 through August 2 for personal leave and to attend the Alaska Municipal League conference. MESSAGES FROM THE BOROUGH MAYOR None. UNFINISHED BUSINESS None. Deputy Presiding Officer Branson recessed the meeting at 8:50 p.m. and reconvened the meeting at 8:55 p.m. NEW BUSINESS Contracts 1. Contract No. FY2010 -09 Providence Kodiak Island Counseling Center Services to KIB School District for School Year 2009 -2010. FRIEND moved to authorize the Manager to execute Contract No. FY2010 -09 with Providence Kodiak Island Counseling Center of Kodiak, Alaska to provide mental health services for the 2009 -2010 school year in an amount not to exceed $381,350. The Agreement was between the Kodiak Island Borough and Providence Kodiak Island Counseling Center ( "Contractor") setting forth the terms and conditions pursuant to the contractor providing mental health services for the Kodiak Island Borough schools. The contractor worked with the School District to identify and document a mutual understanding of the program's scope and requirements with a focus on ensuring the greatest amount of quality service within the budgeted amount of $381,350 which was the same amount as last year. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Branson, Friend, and Fulp. 2. Contract No. FY2010 -01 Kodiak Island Borough Facilities Fuel Oil Delivery. This item was approved under the consent agenda. The contract would supply and deliver #1 and #2 heating oil to KIB facilities which included the Landfill /Baler Building, KIB Admin Building, Chiniak Tsunami Shelter, KFRC Laboratory Facility and dorms, Fire Stations, other KIB rental facilities such as the cottage buildings (720 Egan), and the Annex Building. The benefit of the bid process was to combine the quantity of heating fuel needed for all KIB facilities with the quantities of fuel needed by the School District and the Hospital, for a bulk purchase. The bid packet for heating fuel went out for a 1 year (option A) term or a 3 year (option B) term. Results came back with one bidder. The bid offered a margin of 17 cents for a one year contract and 16 cents for a three year contract. Because the margin for the three -year contract was lower than the one year contract, it was recommended that KIB enter into a contract with Petro Star for a three year contract based on a margin of 16 cents above the weekly average of the posted Seattle OPIS price. These were the same terms that the school district selected when they approved the heating fuel contract with Petro Star, Inc. at the last meeting. VENDOR #1 Town #2 Town CHINIAK Petro Star, Inc. (1 year) $0.17 $0.17 $0.17 Petro Star, Inc. (3 year) $0.16 $0.16 $0.16 Kodiak Island Borough Assembly Minutes July 16, 2009 Page 706 3. Contract No. FY2010 -10 Recycling Contract with Threshold Services Inc. KAPLAN moved to authorize the Manager to execute Contract No. FY2010 -10 with Threshold Services, Inc. of Kodiak, Alaska for a time and material contract estimated to be $281,450 for the period of July 1, 2009 through June 30, 2010. The Kodiak Island Borough's landfill enterprise fund was financed through user fees, residential and commercial garbage fees, as well as fees charged at the landfill for varying wastes. These funds covered costs for the solid waste collection contract, landfill operational disposal costs, and community recycling efforts. A Request for Proposal (RFP) was advertised and the only responder was Threshold Services, Inc. The cost proposed by Threshold Inc. of $380 per ton exceeded the $150 per ton desired in the RFP; however, during negotiation the price was reduced to $325 per ton. The contract was based on the amount of recyclables shipped off island (similar to a time and material contract) and it was estimated that the contract would total $281,450. The landfill budget was budgeted at $130,000 for recycling services. In order for the landfill budget to cover the balance of this expense, it was estimated that rates would need to be increased.The negotiated contract was for one year, July 1, 2009 through June 30, 2010 with two one -year options to extend. Assembly member Fulp spoke in support of the Threshold contract and was hopeful that the garbage rates would not be increased. She also wanted to see a financial plan from Threshold Services, Inc. where their revenues would meet their expenses. Assembly member Stutes agreed that recycling was an important service in the community; however, she was concerned with the RFP process followed on the contract. She spoke to the fact that other bidders- should have been able to have the same information as Threshold Services, Inc. STUTES moved to postpone awarding the contract until September 3, 2009 regular meeting in order that everyone would have the same opportunity to bid. ROLL CALL VOTE ON THE MOTION TO POSTPONE FAILED THREE TO THREE: Lynch, Branson, and Kaplan (Noes); Friend, Fulp, and Stutes (Ayes). In response to Assembly member Friend's question about the cost of services if the contract was awarded for one month, Manager Gifford reported that he had signing authority up to $25,000 and depending upon volume, he would see how long that amount would last. Assembly member Lynch disclosed her position as President of the Board of Threshold Services, Inc. She outlined how Threshold responded to the RFP. She explained in detail how the Borough followed the code for the RFP. Assembly member Kaplan spoke in support of the Threshold contract and summarized comments from a letter received from Linda Kewan in Port Lions stating that their tribal council was dependent on the recycling of Threshold Services, Inc. and their environmental efforts would suffer greatly without their services. Assembly member Branson explained the difference between an RFP and a Request for Bid. She explained that the Threshold contract was for a year and advised other recycling businesses interested to stay tune for future developments. In response to Assembly member Branson's question of what would happen if the contract was not renewed, Manager Gifford reported that Borough funding would not be available and he did not know how long it would take for someone else to take on a recycling program. Kodiak Island Borough Assembly Minutes July 16, 2009 Page 707 ROLL CALL VOTE ON MAIN MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Fulp, Kaplan, and Lynch. Assembly member Stutes changed her vote to the prevailing side. Resolutions 1. Resolution No. FY2010 -03 Approving Fiscal Year 2010 Kodiak Island Borough Non - Profit Funding. LYNCH moved to adopt Resolution No. FY2010 -03. Resolution No. FY2010 -03 was the framework in which the Assembly distributed the Borough funds set aside in the Fiscal Year 2010 budget to various non - profit agencies. Assembly member Friend spoke in support of non - profits. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Fulp, Kaplan, and Lynch. 2. Resolution No. FY2010 -05 Appointing Members to the Kodiak Fisheries Development Association. This item was approved under the consent agenda. The Kodiak Island Borough and City of Kodiak jointly designated the Kodiak Fisheries Development Association (KFDA) as the eligible crab community entity (ECCE). The by -laws of the KFDA provided for appointment of Directors to the Board by the Kodiak Island Borough Assembly and the Kodiak City Council. The by -laws state that appointments take place annually, at July meetings of the Assembly and City Council, and that Directors have staggered three year terms of office. The following individuals are appointed as Directors of the Kodiak Fisheries Development Association, with the noted terms. City Appointees: Crab Processor Rep. - Mike Woodruff (7/10) (appointment) Crab Harvester Rep. - Jeff Stephan (7/11) (reappointment) Joint Appointees: Stosh Anderson (7/10) (joint appointment) Donna Jones (7/08) (joint appointment) Laine Welch (7/08) (joint appointment) Borough Appointees: Crab Processor Rep. — Tuck Bonney (7/12) (reappointment) Crab Harvester Rep. — Jerry Bongen (7/12) (reappointment) 3. Resolution No. FY2010 -02A Amending Resolution No. FY2010 -02 Amending the Fees of the Kodiak Island Borough. KAPLAN moved to adopt Resolution No. FY2010 -02A. The Assembly requested a proposal for metals recycling in Kodiak and until a contract was awarded, the Assembly wished to amend page 11 of the FY2010 fee schedule as follows: 8a. Metals $275.00 /ton 8b. Vehicles up to 7,000 pounds $475.00 per vehicle The intent of the resolution was to put a Request for Proposal out to evaluate costs of recycling metals. Kodiak Island Borough Assembly Minutes July 16, 2009 Page 708 Assembly members Fulp, Stutes, and Branson spoke in support of the resolution Assembly member Lynch spoke against the resolution. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Fulp, Kaplan, and Stutes (Ayes); Lynch (No). Ordinances for Introduction 1. Ordinance No. FY2010 -03 Authorizing the Borough to Issue General Obligation Bonds in the Principal Amount of not to Exceed $76,310,000 to Finance the Planning, Design and Construction of School and Related Capital Improvements in the Borough Including Without Limitation the Reconstruction and Renovation of the Kodiak High School, and to Submit the Question of the Issuance of Such Bonds to the Qualified Voters of the Borough at the October 6, 2009 Regular Borough Election. KAPLAN moved to adopt Ordinance No. FY2010 -03 in first reading to advance to public hearing at the next regular Assembly meeting. The Kodiak Island Borough School District desired to renovate the Kodiak Island High School and construct additional facility space. Educational requirements had changed since Kodiak High School was originally constructed in 1966 as a regional education center. The instructional space available for Kodiak High School did not support the instructional programs which were needed to prepare high school students for success. The current state debt service reimbursement plan provided that the State of Alaska would reimburse the Borough for not Tess than 60% of debt service on the eligible portion of bonds authorized by the qualified voters of the Borough between October 1, 2006 and November 30, 2010, to pay costs of school construction, additions to schools, and major rehabilitation projects. Stewart McDonald, Superintendent of the Kodiak Island Borough School District, gave a presentation in support of the bond ordinances. Assembly members Stutes, Lynch, Friend, Kaplan, and Branson spoke in support of the bond ordinances in order that questions would go before the voters. They stressed the importance of educating the voters on the costs. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Kaplan, Lynch, Stutes, and Branson. 2. Ordinance No. FY2010 -04 Authorizing the Borough to Issue General Obligation Bonds in the Principal Amount of not to Exceed $12,500,000 to Finance the Planning, Design, and Construction of Renewals and Replacements of Borough Facilities; and to Submit the Question of the Issuance of Such Bonds to the Qualified Voters of the Borough at the October 6, 2009 Regular Borough Election. FRIEND moved to adopt Ordinance No. FY2010 -04 in first reading to advance to public hearing at the next regular Assembly meeting. The Borough currently owned over $200,000,000 worth of buildings as reflected on the values listed on the insurance schedules. The number did not include the cost of the land or site improvements and part of the cost of ownership was to renew and /or replace parts of the buildings. The proceeds of the bond ($12,500,000) equaled 6.25% of the current value of the buildings and would be in the best interest of the Borough to keep buildings properly Kodiak Island Borough Assembly Minutes July 16, 2009 Page 709 maintained. Approximately 73% of the buildings were school buildings which qualified for a 70% debt reimbursement from the State of Alaska. Assembly member Stutes spoke in support of moving the bond ordinances forward and expressed a concern about securing a bond for maintenance items. Assembly member Branson noted that renovation in the villages were included in the bond ordinances and encouraged the public to become familiar with them. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Kaplan, Lynch, Stutes, Branson, and Friend. Other Items None. CITIZENS' COMMENTS Mel Stephens spoke against the bond ordinances commenting specifically about the $4.2 million bond proposition that was passed in 2004 to fund vocational education refurbishing. Mr. Stephens spoke against the approval of the Threshold contract, warning the Assembly of being in violation of the Borough's procurement process. ASSEMBLY MEMBER COMMENTS Assembly member Stutes, Kaplan, Lynch, and Branson congratulated Teresa Medina for her receipt of the Employee of the Quarter Award. Assembly member Friend had no comments. Assembly member Fulp was pleased to see the arrival of the cruise ships in Kodiak. Announcements Deputy Presiding Officer Branson announced that the Assembly would meet in a special meeting and work session on Thursday, July 9, 2009 at 7:30 p.m. in the Borough Conference Room. The next regular meeting was scheduled on Thursday, August 6, July 16, 2009 at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT FRIEND moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Branson, Friend, and Fulp. The meeting adjourned at 9:50 p.m. ATTEST: Nova M. Javier, Kodiak Island Borough July 16, 2009 KODIAK ISLAND BOROUGH Je -.ome M. Selby, Mayor // ► C, Borough Clerk Approved: September 3, 2009 Assembly Minutes Page 710