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2009-08-06 Regular MeetingA regular meeting of the Kodiak Island Borough Assembly was held on Thursday, August 6, 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 Captain John Quinn of the Salvation Army. Mayor Selby led the Pledge of Allegiance. Present were Mayor Jerome Selby, Assembly members Pat Branson, Jerrol Friend, Judy Fulp, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Community Development Director Bud Cassidy, Engineering and Facilities Director Woody Koning, Finance Director Karl Short, Deputy Clerk Marylynn McFarland, and Assistant Clerk Jessica Kilborn. BRANSON moved to excuse Assembly member Jeffrey who was out on personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA AND CONSENT AGENDA BRANSON moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES A. Regular Meeting Minutes of June 4, 2009 and July 2, 2009, and Special Meeting Minutes of June 25, 2009 and July 9, 2009 were approved under the consent agenda. AWARDS AND PRESENTATIONS KODIAK ISLAND BOROUGH Assembly Regular Meeting August 6, 2009 CITIZENS' COMMENTS Pam Foreman, Parks and Recreation Committee Vice -Chair spoke in favor of Contract FY2010- 13. COMMITTEE REPORTS Assembly member Stutes reported on the Providence Kodiak Island Counseling Center Advisory Council meeting. Assembly member Kaplan reported on the activities of the Parks and Recreation Committee. Assembly member Branson reported that the Providence Alaska Region Board will hold a board and community meeting on Tuesday, September 22, 2009. PUBLIC HEARING A. 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. Kodiak Island Borough Assembly Minutes August 6, 2009 Page 712 KAPLAN moved to adopt Ordinance No. FY2010 -03. Mayor Selby noted that a substituted version of Ordinance No. FY2010 -03 which included corrections that were made at the last Assembly work session was provided to the Assembly. The Kodiak Island Borough School District (KIBSD) desired to renovate the Kodiak 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 in the world marketplace. The state debt service reimbursement plan provided that the State of Alaska would reimburse the Borough for not less 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. Total principal and interest costs would be $120,465,845, after state reimbursement of approximately 60% the total cost to the Borough would be $48,186,338 and could require a mill rate increase of 2.64 mills. KIBSD's educational mission was severely compromised by facility limitations at the high school. KIBSD Superintendent McDonald provided the Assembly with additional information regarding the ordinance. He spoke on the needs of the students and the community to meet the education requirements provided at the high school facility. FRIEND moved to amend Ordinance No. FY2010 -03 by substitution. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Fulp, Kaplan, Lynch, Stutes, Branson, and Friend. Mayor Selby opened the public hearing. Bob Brodie, Carson Schick, Arne Schick, Angela Eastman, Jesse Laird, Solveiq Christenson, Peggy Tuttle, Nick Watkins, and Roger Estelle spoke in favor of Ordinance No. FY2010 -03 and commented on the health, safety, and education concerns facing KHS students. Isa Stihl Wirz and Charlie Davidson urged the Assembly to support Ordinance No. FY2010 -03. Mary Forbes spoke in support of Ordinance No. FY2010 -03 and commended KHS students for speaking to the Assembly in support of the ordinance. Mayor Selby closed the public hearing. Assembly members Branson, Kaplan, and Stutes commended the community's involvement in support of Ordinance FY2010 -03. ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend, Fulp, Kaplan, Lynch, Stutes, and Branson. Kodiak Island Borough Assembly Minutes August 6, 2009 Page 713 B. 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. KAPLAN moved to adopt Ordinance No. FY2010 -04. 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. Part of the cost of ownership was to renew and /or replace parts of these buildings. The proceeds of the bond ($12,500,000) equaled 6.25% of the current value of the buildings. It was in the best interest of the Borough to keep the buildings properly maintained and deferred maintenance would cost more in the long run. Approximately 73% of the buildings were school buildings which qualified for a 70% debt reimbursement from the State of Alaska. Total principal and interest costs would be $19,841,337, after state reimbursement of approximately 51% the total cost to the Borough would be $10,138,923 and could require a mill rate increase of .53 mills. Engineering and Facilities Director Koning provided additional information regarding Ordinance No. FY2010 -04. Mayor Selby opened the public hearing. Bob Brodie spoke in support of Ordinance No. FY2010 -04. Solveiq Christenson requested clarification be provided to voters about the specifics of each bond ordinance so that it was understood that the ordinances were two distinct issues. Mayor Selby closed the public hearing. Mayor Selby noted that there were no overlaps of either the two ordinances or the funds that would be passed by voters and directed staff to provide information to the public showing a probable rate that the bonds would be sold at. Assembly members spoke in favor of clarification of the two ordinances so the public would clearly understand the two ordinances were separate issues. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Branson, Friend, and Fulp. BOROUGH MANAGER'S REPORT Manager Gifford reported the following: • Reported on the results of the Junk Vehicle Disposal program. • Provided an update on the construction projects. • Recommended cancelling the work session of August 13 and the regular meeting of August 20 due to a lack of items for the agenda. Consensus of the Assembly was given. Assembly member Friend asked that information be provided to property owners of the Woodland Acres Subdivision regarding development issues due to the paving of the subdivisions roads. Kodiak Island Borough Assembly Minutes August 6, 2009 Page 714 MESSAGES FROM THE BOROUGH MAYOR Mayor Selby reported on his attendance at the National Association of Counties (NACo) Annual Conference. Proposed resolutions and platform changes presented at the conference were made available to the Clerk's office. Mayor Selby provided explanation on the proposed changes to the Clean Waters Act which would affect future development near creeks and streams in the Kodiak area. He also reported that there would be a local legislative delegation that would be traveling to Washington D.C. to meet with the Borough lobbyists and Alaska congressional delegation. UNFINISHED BUSINESS None. NEW BUSINESS Contracts A. Amending the Motion Previously Adopted at the July 16, 2009 Regular Meeting on Contract No. FY2010 -01 Kodiak Island Borough Facilities Fuel Oil Delivery. BRANSON moved to amend the motion adopted at the July 16, 2009 regular meeting authorizing the manager to execute Contract No. FY2010 -01 with Petro Star, Inc of Kodiak, Alaska for a three year contract based on a margin FROM $.16 above the weekly average of the posted Seattle OPIS price TO $.25 above the weekly average of the posted Seattle OPIS price. Contract No. FY2010 -01 was approved by the Assembly on July 16, 2009 under the consent agenda. What was reflected on the agenda statement summary was correct; however, the motion that was indicated in the original agenda statement was incorrect and needed to be corrected for the record. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Branson, Friend, Fulp, and Kaplan. B. Contract No. FY2010 -13 Kodiak Road System Trails Master Plan. KAPLAN moved to authorize the manager to execute Contract No. FY2010 -13 with Alta Planning and Design of Portland, Oregon for the Kodiak Road System Trails Plan in the amount not to exceed $128,013. Assembly member Lynch declared a conflict of interest regarding the contract because she was part of the design team. Mayor Selby ruled in favor of the declaration and asked Assembly member Lynch to step down from the dais. Parks and Recreation Committee members worked through the process of selecting a contractor to perform the Road System Trails Master Plan. Nine planning firms responded to the Borough's Request for Proposals (RFP). Three firms were "short listed" and travelled to Kodiak to participate in an interview process, where they were rated and ranked. After the interview process the Committee chose ALTA Planning and Design to perform the work. ALTA had a strong background of trails planning, and included on its team was Mr. Matt Hastie who had developed a successful public participation program and project website for the KIB Comprehensive Plan that was completed during past years. Funds for the planning project would include primary funding through the Community Development Department budget and a State of Alaska CIAP grant of $23,500 which included another $80,000 to "improve" or "harden" various trails with what was known as geo- block. It Kodiak Island Borough Assembly Minutes August 6, 2009 Page 715 was noted that much of the preliminary work had been performed by the Borough which would reduce the ultimate price of the contract. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Fulp, and Kaplan. C. Contract No. FY2010 -14 Kodiak Schools Mechanical Electrical and Plumbing Equipment Seismic Upgrades. BRANSON moved to authorize the manager to execute Contract No. FY2010 -14 with Parkhurst Mechanical, LLC for the Kodiak Area Schools Mechanical, Electrical, and Plumbing Seismic Upgrades in an amount not to exceed $127,340. The contract was for the Kodiak Area Schools Mechanical, Electrical, and Plumbing Seismic Upgrades as shown on construction documents prepared by Jensen Yorba Lott, Inc. The project was to be funded in part by a FEMA HMGP Grant in the amount of $132,249 and other funds were to be determined. Bids were received in response to KIB's Invitation to Bid dated June 26, 2009. Parkhurst Mechanical, LLC. was the low bidder for the project. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Fulp, Kaplan, Lynch, and Stutes. Resolutions None. Ordinances for Introduction A. Ordinance No. FY2010 -05 Amending Kodiak Island Borough Code Title 3 Revenue and Finance Chapter 3.05 Fiscal Policy Section 3.05.030 Debt Policies. KAPLAN moved to adopt Ordinance No. FY2010 -05 in first reading to advance to public hearing at the next regular Assembly meeting. The ordinance would update the debt policies of the Borough. The Borough had a very conservative debt policy and in many ways it made sense to not have it so restrictive. The reasons for this were: 1. The State of Alaska generally reimbursed the Borough for 60 to 70% of its debt. 2. Under the Governmental Accounting Standards Board (GASB) the State reimbursement was not considered in the net bonded debt calculation but was a very real commodity. 3. General Fund expenditures made up a very small percentage of total Borough revenues. 4. The financial stability of the Borough was further enhanced by the Facilities Fund which did not exist when the policies were originally adopted. The ordinance would change the net debt as a percentage of the estimated market value of taxable property from five percent to fifteen percent. The International City /County Management Association (ICMA) in its publication "Evaluating Financial Condition" recommended that a government's net debt should not exceed 10 percent and what was left out of the formula was the large amount of State reimbursement for the Borough's debt. The ordinance would remove the paragraph stating: "The ratio of debt service expenditures as a percent of governmental fund expenditures should not exceed 20 percent ". Generally the ratio was for debt service expenditures compared to governmental revenues. The general fund in the Borough was a very small part of its total operations. Kodiak Island Borough Assembly Minutes August 6, 2009 Page 716 ROLL CALL VOTE ON MOTION CARRIED FIVE TO ONE: Friend, Fulp, Kaplan, Lynch, and Branson (Ayes); Stutes (No). Other Items A. Declaring a Seat on the Solid Waste Advisory Board Vacant. This item was approved under the consent agenda. Mr. Rick Pillans verbally advised the Clerk's Office on July 14, 2009 of his resignation from the Solid Waste Advisory Board. The Assembly accepted, with regret, the resignation of Mr. Pillans for a term to expire December 31, 2009 from the Solid Waste Advisory Board and directed the Borough Clerk to advertise the vacancy per Borough Code. B. Assembly Approval of a Vacation in Accordance With KIBC 16.40 and KIBC 16.60 to Allow a 10 -Foot Wide Utility Easement Over Lot 1A, U.S. Survey 3466 (Originally Created by Plat 80 -22) and the Vacation of a Portion of a Driveway and Utility Easement Located Over a Portion of the Same Lot. (Case S09 -021) BRANSON moved to approve the vacation of a 10 -foot wide utility easement over Lot 1A, U.S. Survey 3466 (originally created by Plat 80 -22) and the vacation of a portion of a driveway and utility easement located over a portion of the same lot. The petitioner requested the vacation of a 10 -foot utility easement located on a portion of land that was acquired from the Borough in 2008. The easement was located in an area where the petitioner was planning to build a residential addition. In addition, a portion of the driveway and utility easement was to be vacated which was no longer necessary to serve the petitioner's lot since they had acquired the portion of land from the Borough on which the portion of easement was located. The Planning and Zoning Commission at its July 15, 2009 regular meeting agreed with the request to vacate the easements and recommended approval to the Assembly based on the condition of approval that the vacation would be reviewed and approved by the Assembly prior to the granting of final plat approval. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Kaplan, Lynch, Stutes, Branson, and Friend. C. Declaring a Seat on the Service Area No. 1 Board Vacant. This item was approved under the consent agenda. Ms. Sharon Lea Adinolfi submitted a letter of resignation from the Service Area No. 1 Board on July 24, 2009, for a term to expire October 2011. The Assembly accepted, with regret, the resignation of Ms. Adinolfi for a term to expire October 2011 from the Service Area No. 1 Board and directed the Borough Clerk to advertise the vacancy per Borough Code. CITIZENS' COMMENTS Pam Foreman thanked the Assembly for approving Contract No. FY2010 -13. ASSEMBLY MEMBER COMMENTS Assembly member Lynch had no comment. Assembly member Stutes thanked the public for testifying on issues that were presented to the Assembly and commended the students who spoke in support of Ordinance No. FY2010 -03. Kodiak Island Borough Assembly Minutes August 6, 2009 Page 717 Assembly member Friend spoke on the new street lighting on Rezanof Drive and thanked all who participated in the project, and thanked the students and public for testifying on Ordinance No. FY2010 -03. Assembly member Kaplan wished everyone a great weekend. Assembly member Fulp spoke on local reunions that were being held, thanked CDD Director Cassidy for acting as the Administrative Official in the absence of the Manager, thanked Manager Gifford for submitting the letter to the State urging re- painting of the Near Island bridge, and thanked Assessor Tom Anderson for his hard work as the Borough Assessor and wished him well in Kenai. Assembly member Branson was impressed with the progress of the construction projects, expressed interest in the possibility of the Legislature overriding the Governor's veto on the $28 million dollar stimulus money, and alerted community members aged 65 and older that there were support systems in place to help cover the $70 /month tax exemption rate increase mandated by the state. Announcements Mayor Selby announced that the Assembly would hold a special meeting on Tuesday, August 18, 2009 at 7:30 p.m. in the Borough Assembly Chambers. The Assembly would meet in a work session on Thursday, August 27, 2009 at 7:30 p.m. in the Borough Conference Room. The next regular meeting was scheduled on Thursday, September 3, 2009 at 7:30 p.m. in the Borough Assembly Chambers. Mayor Selby urged the public to attend a luncheon and to participate in discussion with the University of Alaska Fairbanks Chancellor on Thursday, August 20, 2008 at 12 p.m. at the Kodiak Inn. ADJOURNMENT BRANSON moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Branson, Friend, and Fulp. The meeting adjourned at 9:05 p.m. ATTEST: ova M. Javier, MMC, Bo ough Clerk Kodiak Island Borough August 6, 2009 KODIAK ISLAND BOROUGH J'rome M. Selby, Mayor Approved: October 15, 2009 Assembly Minutes Page 718