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2004-10-28 Work SessionASSEMBLY WORK SESSION October 28, 2004 - 7:30 p.m. Borough Conference Room CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION I . Kodiak Island Borough School District Board of Education 2. KIB /KIBSD Ad Hoc Committee Report on In -Kind Services/ 3. Community Development Department Update - Michelle Stearns Na /9r Zo 4. Strategic Planning Schedule P ACKET VI tae MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS AGENDA Items for future Assembly work session discussion: Car Crusher Facilities Fund Gravel - Transfer Stations - Garbage in General { Management Review of Borough Operations I� Meeting with P &Z - Mobile Home Ordinance Changes - Appeal Ordinance Changes iV'f Noise O ' li � ool � 5 U ON LEAVE Wells - October 28- November 5 Bonney - October 29 - November 7 ANIL, - Fairbanks Williams/Nielsen November 7 -10 Raney /Selby - November 9 -12 ASSEMBLY WORK SESSION October 28, 2004 - 7:30 p.m. Borough Conference Room Present were Mayor Jerome Selby, Assemblymembers Tom Abell, Tuck Bonney, Pat Branson, Cecil Ranney, and Barbara Williams. Absent were Mike Anderson, Nancy Wells. Staff present were Pat Carlson, Manager; Judi Nielsen, Borough Clerk; and Laura Casey, Assistant Clerk. The meeting was called to order at 7:30 p.m. CITIZENS' COMMENTS - None ITEMS FOR DISCUSSION Kodiak Island Borough School District Superintendent, Betty Walters reported on the growth of enrollment for the Kindergarten classes. She said they district is trying to hire a bilingual teacher for the High School. Mayor Selby said a bonding project schedual needed to be made with the school district and have them advise us of the priority. He would like to have several people work on a design team for the imput from the school district. Assemblymember Abell asked if funding could be requested from other sources, for example, KANA and Tribal Councils to help give Old Harbor and Ouzinkie the gyms they want without impacting the Borough tax payers. In response to Assemblymember Williams, Manager Carlson said there was a five year time frame for completion and that staff would be hired in Engineering/Facilities. In reponse to a letter requesting for more classrooms, Betty Walters said all the classrooms are being used and the Special Education Classes along with specialty classes, like music, etc. are no long available. She said the community turned down the ability to get state funding. Board of Education member Scott Williams concurred with Assemblymember Bonney, that the public said no to the addition of Northstar, but you have to look at the needs of the children. They need more space either in the school or have a portable school. Assemblymember Branson requested more documentation on where the needs are, and would like to visit the schools to see the problems, then inform the public of the needs. Board of Education member Roy Brown said the letter was to stimulate the conversation of possibly getting one to two classrooms. Assemblymember Abell wished the school board would have brought this to their attention earlier. Manager Selby said to have Bob Tucker, along with another person, look at the set up of the classrooms to make sure everything is being utilitzed to its fullest ability. He wanted to revisit at the November 30` meeting the In Kind Committee Report, this would allow the Assembly to review the report. Assemlbymember Heinrichs asked the Assembly and School Board to adopt a joint resolution including the Committee report. Mayor Selby said there would be discussion on the committee report and what would be in the resolution on the November 16` work session. He said the school district can do the same, then Manager Carlson and Betty Walters can create the resolution to have for consideration at the November 30 work session. • Community Development Department Update Community Development Director, Michelle Steams was invited to the table to update the Assembly on the projects that have been taking place over the last few years. Michelle would be leaving the Borough in the next few weeks. The Assembly thanked Michelle for the work summary. Manager Carlson said Duane Dvorak would be the intrim Director. Mayor Selby asked if there was a possiblitity of contracting Ms. Stearns to complete some of the pending projects. Assemblymember Branson asked for an update. • Strategic Planning Schedule Consensus of the Assembly was to conduct the Strategic Planning on November 19 -20 at the Kodiak Fisheries Research Center and if needed have a meeting later for any follow up items. • Gulf Rationalization Manager Carlson suggested the Assembly pass a resolution clarifing the Borough's position. Mayor Selby asked Manager Carlson to put together a resolution that states the fish caught in Kodiak waters by Kodiak fisherman be processed in Kodiak for adoption on November Assemblymember Ranney asked for options of the gulf rationalization so they would know what they would like to support or not support. Mayor Selby said he would meet with Mayor Floyd of the City of Kodiak to discuss their postion. Manager Carlson said a joint resolution with the City of Kodiak would be very beneficial. At 8:55 pm there was a 5 minute recess. PACKET REVIEW Ordinance No. FY 2005 -08 Authorizing the Borough to Issue General Obligation School Bonds, 2004 Series B in the Principal Amount of Not to Exceed $11,050,000 to Provide Funds for School and Related Capital Improvements in the Borough and to Pay Costs of Issuing the Bonds, Fixing Certain Details of Such Bonds, Authorizing Their Sale, and Providing for Related Matters. Manager Carlson said this would allow the Bonds to be sold in November and closed in December. • Election of Deputy Presiding Officer. Assemblymember Bonney said he would not be at the regular meeting, but would like to be nominated. Contract No. 2004 -57 Mission Lake Tide Gate Project. Manager Carlson said this was a place holder and that it may need to be removed from the agenda or postponed at the regular meeting. • Ordinance No. 2004 -10A Amending Ordinance No. 2004 -10 to Reflect Amendments. Assembymember Branson asked the amount to hire ? be faxed to the Assembly. MANAGER'S COMMENTS Manager Carlson asked the Assembly if they would like the Fire Protection Area No. 1 Board to submitt their complete project for approval or can the Board move forward with budgeting money every year for projects as long as they follow the bidding process. Consensus of the Assembly was that as long as the budget was approved and they followed the bidding process, it would not be necessary to bring before the Assembly as a formal action. He spoke with the School District and they would to release the relationship with the KHC boat, as they would be using Fish & Games boat the Kittewake.. Mayor Selby said the Borough should not keep the unused boat and pay $10,000 in insurance each year. He proposed the vessel be surplussed and sold. Jeff Stephen said he would clarify the use with Betty Walters and have her report to Manager Carlson. He said the Shared Fisheries Tax has the end date of November 1 s' and the Borough would be moving forward with the long form. It will come before you in a Resolution.. He said Mayor Nestic of Old Harbor had requested the funds be distributed back to the communities that need it. He welcomed Cassandra Juenger as the Revenue Accountant. In response to Assemblymember Abell, Manager Carlson said it would be very complex to contract Community Development Director Michelle Steams. It would take time for the new Director to learn the projects. Mayor Selby asked Manager Carlson to bring forward a recommendation. CLERK'S COMMENTS Clerk Nielsen reminded the Assembly the Election was Tuesday, November 2 " and the Clerk's Office had over 300 absenttee voters. She said arrangements had been mady for Mayor Selby, Assemblymembers Ranney and Williams., along with herself to AML in Fairbanks, AK and tickets would be in their mail at the November 4' regular meeting. MAYOR'S COMMENTS Mayor Selby received consensus to write a letter of support for the Salvation Army Kodiak Corps and Community Center's grant application for Transitional Housing for Recovering Substance Abusers. ASSEMBLYMEMBER COMMENTS Assemblymember Ranney welcomed Mayor Selby and Assemblymember Williams. Assemblymember Abell asked the Borough or the School District did not approach KANA or any of the other Trible Councils to help fund the bond projects in Old Harbor or Ouzinkie. Mayor Selby said that was a possibility, but would need to have an architect hired to be able to give KANA and the Trible Councils an exact cost. While waiting for the RFP to hire the Architect, we could have discussion with the villages. Assemblymember Abell aslo welcomed Mayor Selby and Assemblymember Williams. Assemblymember Branson noted it had been a while since the Assembly had met with the Planning and Zoning Cnmmicsinn She we Selb Mayor y, s a O s e m bl ymem b er Wa - — � " J ... muwuva�a avaaav�a ,r auicutm. Assemblymember Bonney welcomed Mayor Selby and Assemblymember Williams and was looking forward to the upcoming year. Assemblymember Williams welcomed Mayor Selby and was happy to be here. She was excited to get alot accomplished. Mayor Selby adjourned the work session at 9:35 pm Please print your name 1. c LU&2, 2. 404- 3. En 1 4. i-H- Lc) ( p � 5. e p .S 20 w KODIAK ISLAND BOROUGH WORK SESSION MEETING Work Session Meeting of: ' )C+Ohe( G 2 , 1 13. 14. 15. ASSEMBLY WORK SESSION October 28, 2004 - 7:30 p.m. Borough Conference Room AGENDA CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION 1. Kodiak Island Borough School District Board of Education 2. KIB /KIBSD Ad Hoc Committee Report on In -Kind Services 3. Community Development Department Update - Michelle Steams 4. Strategic Planning Schedule 5. Gulf Rationalization PACKET REVIEW MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS Items for future Assembly work session discussion: Airport Car Crusher Facilities Fund Gravel Landfill - Transfer Stations - Garbage rn eneral Management Review of Borough Operations Meeting with P &Z - Mobile Home Ordinance Changes - Appeal Ordinance Changes Noise Ordinance ON LEAVE Wells - October 28- November 5 Rnnn - flrtnher 79 - Nnvemher 7 AML - Fairbanks Williams/Nielsen November 7 -10 Ranney /Selby - November 9 -12 28- 16- 17- 18- 23- 25- 30- 3- 6- 11- 12- 13- 17- 19- 20- 25- 27- 7:30 pm 7:30 pm 7:00 pm ELECTION 7:30 pm TRAVEL 7:00 pm 7:30 pm CLOSED 10:00 am 7:00 pm 7:30 pm 7:30 pm 7:30 pm 7:00 pm 7:30 pm CLOSED 7:30 pm 2- 1:30 pm 7:30 pm 6- 7:00 pm 8- 7:30 pm 9- 7:30 pm 14- 7:00 pm 7:30 pm 15- 7:30 pm 16- 7:30 pm 20- 7:00 pm 24- CLOSED 28- 7:00 pm 30- 7:30 pm 31- CLOSED 7:00 pm 7:30 pm 7:00 pm 7:30 pm 7:30 pm 7:30 pm 7.111 pm CLOSED 7:00 pm 7:30 pm 7:30 pm 7:00 pm 7:30 pm AJJCIV1fL1' CALCJVUAI( October 2004 Assembly Work Session - CR City Council Regular Meeting - AC November 2004 Board of Education Work Session - SD /CR General Election Assembly Regular Meeting - AC AML Meetings - Fairbanks Parks and Recreation Committee Meeting - CR Planning and Zoning Commission Work Session - CR Borough Offices Closed in Observance of Veteran's Day City Council Work Session - SD /CR Board of Education Regular Meeting - AC Assembly Work Session - CR Planning and Zoning Commission Regular Meeting - AC Assembly Regular Meeting - AC Parks and Recreation Committee Meeting - CR City Council Work Session - AC Borough Offices Closed in Observance of Thanksgiving Day Assembly Work Session - CR December 2004 Local Emergency Planning Committee - AC Assembly Regular Meeting - AC Board of Education Work Session - SD /CR Planning and Zoning Commission Work Session - CR Assembly Work Session - CR Parks and Recreation Committee Meeting - CR City Council Regular Meeting - AC Planning and Zoning Commission Regular Meeting - AC Assembly Regular Meeting - AC Board of Education Regular Meeting - AC Borough Offices Closed in Observance of Christmas Parks and Recreation Committee Meeting - CR Assembly Work Session - CR Borough Offices Closed in Observance of the New Year January 2005 Board of Education Work Session - SD /CR Assembly Regular Meeting - AC Parks and Recreation Committee Meeting - CR City Council Work Session - SD /CR Planning and Zoning Commission Work Session - CR Assembly Work Session - CR City f nnneil Regular Meeting - AC Borough Offices Closed in Observance of Martin Luther King Day Board of Education Regular Meeting - AC Planning and Zoning Commission Regular Meeting - AC Assembly Regular Meeting - AC Parks and Recreation Committee Meeting - CR Assembly Work Session - CR KODIAK ISLAND BOROUGH ORDINANCE NO. 2004 -03 Introduced by: Requested by: Drafted by: Manager Introduced: Public Hearing: Adopted: Manager Carlson Assembly Carlson /Bond Attorney 03/09/2004 03/18/2004 03/18/2004 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,765,000 TO FINANCE THE PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL AND RELATED CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION KODIAK MIDDLE SCHOOL CONCRETE REPAIR; LARSEN BAY SCHOOL FLOOR REPAIR; KODIAK HIGH SCHOOL ASBESTOS REMOVAL, FLOOR COVERING AND POOL SPACE RECLAMATION; DISTRICT WIDE FLOOR COVERING REPLACEMENT; AND EVACUATION CENTER EARTHQUAKE EVALUATION; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE APRIL 20, 2004 SPECIAL BOROUGH ELECTION WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the 2002 special session; and WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service on the eligible portion of bonds issued by the Borough to pay costs of school construction, additions to schools, and major rehabilitation projects and education - related facilities; and WHEREAS, under the provisions of AS 29.47.190 a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, The Borough views the school and related capital improvements authorized herein as necessary and beneficial to the community. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: Section 2: Section 3: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances. It is hereby determined to be for a public purpose and in the public interest of the Kodiak Island Borough (the "Borough") to incur general obligation bonded indebtedness in an amount not to exceed Two Million Seven Hundred Sixty Five Thousand Dollars ($2,765,000) for the purpose of paying the cost of planning, designing and constructing school and related capital improvements in the Borough. The Borough is authorized to borrow the sum of Two Million Seven Hundred Sixty Five Thousand Dollars ($2,765,000) to finance the capital improvements described in Section 4. and the borrowing shall h evidenced by the issuance of general obligation bonds of the Borough; provided that bonds may not be issued for a project, other than the Evacuation Center earthquake evaluation, unless the project is eligible for debt service reimbursement of at least sixty percent (60%) by the State of Alaska. The full faith and credit of the Borough are pledged for payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due. Kodiak Island Borough, Alaska Ordinance No. 2004 -03 Page 1 of 3 Section 4: The Borough shall submit the following proposition to the qualified voters of the Borough at the April 20, 2004 special Borough election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved. Project Estimated Cost Kodiak Middle School concrete repair $ 237,918 Larsen Bay School floor repair $ 339,883 Kodiak High School asbestos removal and floor covering replacement $ 304,704 Kodiak High School pool space reclamation $ 650,788 District -wide floor covering replacement $ 728,708 Evacuation Center earthquake evaluation $ 500,000 Bonds may not be issued to pay costs of a project, other than the Evacuation Center earthquake evaluation, unless the project is eligible for debt service reimbursement from the State of Alaska. The approximate amount of taxes on $100,000 of assessed real and personal property value (based on total 2004 assessed valuation) required to pay 100% of the debt service for the projects above is $30.85 per year, and to pay the Borough share of debt service for the projects with full State debt service reimbursement is $15.67 per year. The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. 2004 -03) Section 5: The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate and next to a square provided for making the ballot for voting by hand or machine: Section 6: PROPOSITION NO. 1 GENERAL OBLIGATION BONDS FOR SAFETY — REPAIR PROJECTS Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Two Million Seven Hundred Sixty Five Thousand dollars ($2,765,000) to finance the planning, design and construction of school and related capital improvements in the Borough, including without limitation projects described below? PROPOSITION NO. 1 YES 0 NO 0 Sections 2 and 3 of this ordinance shall become effective only if the proposition described i.. S A i ,nrl r.., a majority of the n, ml:finrl vnt vntinn nn uw.,nuo.a ,,, Section approved ., ., �jo . , ..... y .. . - .... . - . . .. the proposition at the April 20, Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. Kodiak Island Borough, Alaska Ordinance No. 2004 -03 Page 2 of 3 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS EIGHTEENTH DAY OF MARCH, 2004 ATTEST: Gabrielle LeDoux, Borougff Mayor Judith A. Nielsen, CMC, Borough Clerk KODIAK ISLAND BOROUGH Kodiak Island Borough, Alaska Ordinance No. 2004-03 Page 3 of PROPOSITION NO. 1 - SAFETY - REPAIR PROJECTS PROJECT DESCRIPTIONS 1. Kodiak Middle School Concrete Repair. The scope of work for this project is to repair all spalling concrete around the Middle School entrances. This would repair several thousand square feet of concrete walkways, which are in very poor condition, along with repair to a concrete retaining wall and ramp. The concrete has been written up in several insurance reports as a hazardous condition. Estimated Cost $237,918 State reimbursement of 60% $142,751 Net Borough Debt Estimate $ 95,167 2. Larsen Bay School Floor Repair. The scope of work for this project would include the analysis and correction of the central portion of the school building that has been subject to differential settling causing the floors to buckle down the middle of the building, which has affected the kitchen, cafeteria, bathrooms and the gym. The project would in- clude repairs to the flooring inside the building and damaged sheet rock and other items. Estimated Cost $339,883 State reimbursement of 60% $203,930 Net Borough Debt Estimate $135,953 3. Kodiak High School Asbestos Removal and Floor Covering Replacement. This project consists of the removal of 27,500 square feet of Asbestos Floor tile in Kodiak High School classroom and vocational wing. The asbestos for the most part is under the old carpeting in the building and would need to be re- moved along with the Asbestos. The cove base around the perimeters of the rooms would need to be removed as well because the old mastic that was used contained Asbestos, Then 27,500 square feet of carpeting or tile would need to be purchased and installed where the asbestos and old carpeting were removed. This estimated project cost includes both the Asbestos Removal and Carpet or tile purchase and installation. Estimated Cost $304,704 State reimbursement of 60% $182,822 Net Borough Debt Estimate $121,882 4. Kodiak High School Pool Space Reclamation. This project is contingent on the passage of Proposition 4 for a new aquatic fa- cility, which will vacate the old pool facility at the Kodiak High School. The scope includes the estimated cost to remove the old pool improvements and to fill in the pool cavity. Also, floor coverings and wall repairs are assumed in order to create usable space for the High School athletic programs. Estimated Cost $650,788 State reimbursement of 60% $390,473 Net Borough Debt Estimate $260,315 5. District - Wide Floor Covering Replacement. This project would include flooring replacement of virtually all the buildings in the district estimated at 292,500 square feet. The district has been specifying 28 -oz Action -Back carpeting or a commercial grade resilient tile for all of our schools. It would include both the removal of the old flooring and installation of new coverings in all or portions of the following buildings: Auditorium, East Elementary, Kodiak High School, Kodiak Middle School, Main Elementary, Peterson Elementary, North Star Elementary, Akhiok School, Chiniak School, Karluk School, Larsen Bay School, Old Harbor School, Ouzinkie School, Port Lions School. Estimated Cost $728,708 State reimbursement of 60% $437,225 Net Borough Debt Estimate $291,483 6. Evacuation Center Earthquake Evaluation. This project would review the as — built plans for all Kodiak.Island Borough Schools to determine their structural adequacy to withstand major earthquakes in Kodiak. Many of Kodiak's school buildings were built before stringent earth- quake codes. Kodiak is in a world -class seismic area and the potential magni- tude of local earthquakes could cause serious damage to school buildings put- ting students, educators and administrators in harms way. This project will iden- tify the adequacy of the existing buildings and suggest potential solutions. If the budget allows, additional work will be permitted in those facilities that serve as evacuation centers and are deemed a potential hazard including but not lim- ited to seismic review and structural adequacy. The project is not eligible for State debt reimbursement. Estimated Total Cost $500,000 State debt reimbursement $ -0- Net Borough Debt Estimate $500,000 KODIAK ISLAND BOROUGH ORDINANCE NO. 2004 -04 Introduced by: Manager Carlson Requested by Assembly Drafted by: Manager Carlson /Bond Attorney Introduced: 03/09/2004 Public Headng: 03/18/2004 Adopted: 03/18/2004 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,185,000 TO FINANCE THE PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL AND RELATED CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION KODIAK HIGH SCHOOL HEATING AND VENTILATION UPGRADES; EAST SCHOOL HEATING AND VENTILATION UPGRADES; KODIAK HIGH SCHOOL EXTERIOR INSULATION AND WINDOW REPLACEMENT; KODIAK HIGH SCHOOL AND MIDDLE SCHOOL ROOF REPAIRS; OLD HARBOR GYMNOC -ED RENOVATION; OUZINKIE GYM RENOVATION; AND LEARNING CENTER RENOVATION; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE APRIL 20, 2004 SPECIAL BOROUGH ELECTION WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the 2002 special session; and WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse the Borough for severity percent (70%) of debt service on bonds issued by the Borough to pay costs of the Old Harbor Gym /Voc -Ed renovation and Ouzinkie Gym renovation, and not less than sixty percent (60 %) of debt service on the eligible portion of bonds issued by the Borough to pay costs of other school construction, additions to schools, and major rehabilitation projects and education - related facilities; and WHEREAS, under the provisions of AS 29.47.190 a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, The Borough views the school and related capital improvements authorized herein as necessary and beneficial to the community. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances. Section 2: It is hereby determined to be for a public purpose and in the public interest of the Kodiak Island Borough (the "Borough") to incur general obligation bonded indebtedness in an amount not to exceed Seven Million One Hundred Eighty Five Thousand Dollars ($7,185,000) for the purpose of paying the cost of planning, designing and constructing school and related capital improvements in the Borough. Section 3: The Borough is authorized to borrow the sum of Seven Million One Hundred Eighty Five Thousand Dollars ($7,185,000) to finance the capital improvements described in Section 4, and the borrowing shall be evidenced by the issuance of general obligation bonds of the Borough; provided that bonds may not be issued for the Old Harbor Gym /Voc -Ed renovation and Ouzinkie Gym renovation unless those projects are eligible for debt service reimbursement of at least seventy percent (70 %) by the State of Alaska, and bonds may not be issued for any other project unless the Kodiak Island Borough, Alaska Ordinance No. 2004 -04 Page 1 of 3 project is eligible for debt service reimbursement of at least sixty percent (60 %) by the State of Alaska. The full faith and credit of the Borough are pledged for payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due. Section 4: The Borough shall submit the following proposition to the qualified voters of the Borough at the April 20, 2004 special Borough election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved. PROPOSITION NO. 2 GENERAL OBLIGATION BONDS FOR ENERGY /RENOVATION PROJECTS Section 5: Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Seven Million One Hundred Eighty Five Thousand Dollars ($7,185,000) to finance the planning, design and construction of school and related capital improvements in the Borough, including without limitation the projects described below? Project Kodiak High School heating and ventilation upgrades East School heating and ventilation upgrades Kodiak High School exterior insulation and window replacement Kodiak High School and Middle School roof repair Old Harbor Gym /Voc -Ed renovation Ouzinkie Gym renovation Learning Center renovation Bonds may not be issued to pay costs of a project unless the project is eligible for debt service reimbursement by the State of Alaska. The approximate amount of taxes on $ 100,000 of assessed real and personal property value (based on total 2004 assessed valuation) required to pay 100% of the debt service for the projects above is $80.16 per year, and to pay the Borough share of debt service for the projects with full State debt service reimbursement is $27.46 per year. The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. 2004 -04) The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate and next to a square provided for making the ballot for voting by hand or machine: PROPOSITION NO. 2 YES D NO D Estimated Cost $ 250,000 $ 520,000 $ 596,020 S 523,504 $2,251,315 $1,858,255 *1,182,336 Kodiak Island Borough, Alaska Ordinance No. 2004 -04 Page 2 of 3 Section 6: ATTEST: Sections 2 and 3 of this ordinance shall become effective only if the proposition described in Section 4 is approved by a majority of the qualified voters voting on the proposition at the April 20, 2004 special Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS EIGHTEENTH DAY OF MARCH, 2004 Judith A. Nielsen, C, Borough Clerk KODIAK ISLAND BOROUGH Aeit Gabrielle LeDoux, orough Mayor Kodiak Island Borough, Alaska Ordinance No. 2004-04 Page 3 of 3 PROPOSITION NO. 2 - ENERGY/RENOVATION PROJECTS PROJECT DESCRIPTIONS 1. Kodiak High School Heating and Ventilation Upgrades. The scope of work for this project consists of removing the old heating and ven- tilation controls which are antiquated and for which we can no longer purchase parts and installing new DDC controls. Most of the field units are still operable and can be maintained due to parts availability but some will need to be re- placed because some are not compatible with the new control system. The new DDC controls are of the same brand that we are installing in schools district wide. Estimated Cost $250,000 State reimbursement of 60% $150,000 Net Borough Debt Estimate $100,000 2. East School Heating and Ventilation Upgrades. The scope of work for this project would replace the cabinet unit ventilators with new air handling units outside of the classrooms. The air handlers would most likely be installed in rooftop penthouse. The scope of work would also install the districts standardized controls for all heating and ventilating units throughout the 39,842 square foot building. Due to the age of the cabinet unit ventilators it is almost impossible to get repair parts for them and in the near future it will be impossible. Upgraded heating controls in the building will save a substantial amount of money on fuel bills and give us the ability to do night and holiday setbacks automatically, for additional savings. Estimated Cost $520,000 State reimbursement of 60% $312,000 Net Borough Debt Estimate $208,000 3. Kodiak High School Exterior Insulation and Window Replacement. The scope of work for this project would include the installation of exterior thermal insulation (approx. 21,000 square feet) to the building and thermal windows where they do not presently exist (Approx. 1,800 square feet) on the classroom annex to the Kodiak High School complex. Installing the thermal insulation system and the thermal pane windows will have substantial savings in fuel and electricity throughout the school, along with reduced costs for paint- ing. Estimated Cost $596,020 State reimbursement of 60% $357,612 Net Borough Debt Estimate $238,408 4. Kodiak High School and Middle School Roof Repair. The scope of work for this project consists of the upgrade of 170,843 square feet of roofing covering in the rest of the High School Auditorium and Middle School Complex. The upgrading would give the roofs an entire overlay of new rubber giving the roofs a complete new life cycle. Estimated Cost $523,504 State reimbursement of 60% $314,102 Net Borough Debt Estimate $209,402 5. Old Harbor Gym/Voc -Ed Renovation. The scope of work for this project is to provide exterior and interior upgrades to the school's existing gym and voc -ed area in order to extend the life and useful- ness of this facility. This portion is the school gym, the industrial arts shop, the welding shop and the associated boy's and girl's restrooms. The upgrades are as follows: 1) Replacing the pitched roof. 2) New exterior doors. 3) Replacing the interior partitions in the shop areas, replacing the interior partitions of the restrooms and all restroom accessories including flooring and showers. 4) Replacing plumbing, heating and ventilating systems, providing new con- trols and a sprinkler system. 5) Add an estimated 2,212 square feet of bleacher, storage, and shop space. The existing structure has exceeded the system life expectancy for most portions of the project especially the roof. A renovation project in 1994 ad- dressed upgrading the siding at this facility; this project would improve the re- maining exterior amenities. The current building interior is outdated and dilapi- dated. The shop areas are outdated in regards to equipment and space; this modification would provide a more useful facility. Replacement of mechanical and electrical systems will also increase the efficiency in operating this facility. This project is pre- approved by the State for 70% debt reimbursement. Estimated Cost $2,251,315 State reimbursement of 70% $1,575,921 Net Borough Debt Estimate $ 675,395 6. Ouzinkie Gym Renovation. The scope of work for this project is to provide exterior and interior upgrades to the existing 3,555 square feet of Gym space in order to extend the life and use- fulness of this facility. The upgrades include the following: 1) Replacing the pitched roof. 2) Replacing the exterior siding and windows. 3) Replacing the interior partitions of the girls and boys restrooms and all rest - room accessories. 4) All flooring (Carpeting and or Tile). 5) Replacing plumbing. 6) Heating and ventilating systems and controls. 7) Add an estimated 1,836 square feet of gym and storage area. The existing structure has exceeded the system life expectancy for most portions of this work, especially the roof and exterior wall systems. The current building has developed considerable damage to the siding and studs due to moisture penetration. The extent of this deterioration is beginning to affect ad- jacent portions of the school. Replacement of mechanical and electrical sys- tems will also increase the efficiency of operating this facility. This project is pre - approved by the State for 70% debt reimbursement. Estimated Cost $1,858,255 State reimbursement of 70% $1,300,779 Net Borough Debt Estimate $ 557,477 7. Learning Center Renovation. The scope of work for this project would include the total renovation of this 8614 square foot building. At the present time this building houses the Districts Learning Center /Correspondence Study Programs along with the Districts Business Department. This building was originally built as a cafeteria and has not been renovated since it was built in 1968. The roof was replaced last year with a new PVC roof and a small portion of the ventilation system was upgraded several years ago to use the two back rooms as classrooms, however heating these rooms in the winter is challenging at times. The renovation would include the following: I) New ventilation and heating units. 2) New heating and ventilation controls. 3) New lighting fixtures (the present ones are inadequate and do not meet D. E.C. Codes.) 4) New fire Alarm and Sprinkler system. (This is now mandatory for all schools) 5) Due to the age of this building and the present use of the building the main electrical distribution system would also need to be replaced. 6) New classrooms and new partitions in the Business Department end of the building. 7) New windows and the addition of more windows as needed for the egress/ lighting of the classrooms. 8) New restroom facilities that are adequate to the number of users in the building to include new fixtures and partitions. 9) New flooring throughout the building, either carpeting or resilient tiles de- pending on the use of the area. This project is anticipated to receive 60% debt reimbursement from the State. Estimated Cost State reimbursement of 60% Net Borough Debt Estimate $1,182,336 $ 709,402 $ 472,934 Introduced by: Manager Carlson Requested by: Assembly Drafted by: Borough Clerk/Bond Attomey Introduced: 08/19/2004 Public Hearing: 09/02/2004 Amended: 09/02/2004 Adopted: 09/02/2004 KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2005 -04 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $6,210,000 TO FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF SCHOOL AND RELATED CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION A NEW SCHOOL POOL 6 -LANE, 1 DIVING BOARD; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 5, 2004 REGULAR BOROUGH ELECTION WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the 2002 special session; and WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse the Borough for not less than sixty percent (60%) of debt service on the eligible portion of bonds authorized by the qualified voters of the Borough on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education - related facilities; and WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, the Borough views the school and related capital improvements authorized herein as necessary and beneficial to the community; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances. Section 2: It is hereby determined to be for a public purpose and in the public interest of the Kodiak Island Borough (the "Borough ") to incur general obligation bonded indebtedness in an amount not to exceed Six Million Two Hundred Ten Thousand Dollars ($6,210,000) for the purpose of paying the cost of planning, designing, and constructing school and related capital improvements in the Borough. Section 3: The Borough is authorized to borrow the sum of Six Million Two Hundred Ten Thousand Dollars ($6,210,000) to finance the capital improvements described in Section 4, and the borrowing shall be evidenced by the issuance of general obligation bonds of the Borough; provided that bonds may not be issued for any project unless the project is eligible for debt service reimbursement of at least sixty percent (60 %) by the State of Alaska. The full faith and credit of the Borough are pledged for payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due. Section 4: The Borough shall submit the following proposition to the qualified voters of the Borough at the October 5, 2004 regular Borough election: The proposition must receive an affirmative . vote from a majority of the qualified voters voting on the question to be approved. Kodiak Island Borough, Alaska Ordinance No. FY2005 -04 Page I of 2 Section 5: Section 6: PROPOSITION N0.1 GENERAL OBLIGATION BONDS FOR NEW SCHOOL POOL 6-LANE, 1 DIVING BOARD Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Six Million Two Hundred Ten Thousand Dollars ($6,210,000) to finance the planning, design, and construction of school and related capital improvements in the Borough, including without limitation the projects described below? Project Estimated Cost New School Pool 6 -lane, 1 diving board $6,210,000 Bonds may not be issued to pay costs of a project unless the project is eligible for debt service reimbursement by the State of Alaska. The approximate amount of taxes on $100 'of assessed real and personal property value (based on total 2004 assessed valuation) required to pay 100% of the debt service for the project above is $ 66.62 per year, and to pay the Borough share of debt service for the project with full State debt service reimbursement is $ 26.65 per year. • The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. FY2005 -04) The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate next to an oval provided for marking the ballot for voting by hand or machine: PROPOSITION NO. 1 YES o NO o Sections 2 and 3 of this ordinance shall become effective only if the proposition described in Section 4 is approved by a majority of the qualified voters voting on the proposition at the October 5, 2004 regular Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SECOND DAY OF SEPTEMBER 2004 KODIAK ISLAND BOROUGH ATTEST: Gabrielle LeDoux, Borough Nyayor a udith A. Nielsen, C orough Clerk KoJ Ink Island Borough, Alaska Ordinance No. FY2005 -04 Page 2 of 2 PROJECT DESCRIPTION This bond would construct a new 18,000 square foot facility in the area of the Kodiak High School and Kodiak Middle School campus, conceptually behind the vocational wing of the Kodiak High School. The pool will not only serve the school district needs but also offer therapy, exercise, and a healthy recreation opportunity for members of the communities with at least the following features: 1. Six lanes 2. Twenty-five yard pool with a diving board 3. A separate shallow area for handicapped access to the pool and special education services 4. Locker and family changing rooms, storage, and mechanical rooms 5. An attached multi -use teaching space convertible to a 200 spectator seating area 6. Ability to hold regional swim meets or other large water events that are currently held in other places across the state 7. Expandable for future additions as needs change in the communities Estimated Cost $6,210,000 State Reimbursement of 60% $3,726,000 Net Borough Debt Estimates $2,484,000 KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2005 -05 Introduced by: Manager Carlson Requested by: Assembly Drafted by: Borough Clerk/Bond Attorney Introduced: 09/19/2004 Public Hearing: 09/02/2004 Amended: 09/02/2004 Adopted: 09/02/2004 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $4,190,000 TO FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF SCHOOL AND RELATED CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION THE KODIAK HIGH SCHOOL VOC ED /CLASSROOM RECLAMATION; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 5, 2004 REGULAR BOROUGH ELECTION WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the 2002 special session; and WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service on the eligible portion of bonds authorized by the qualified voters of the Borough on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education - related facilities; and WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, the Borough views the school and related capital improvements authorized herein as necessary and beneficial to the community; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances. Section 2: It is hereby determined to be for a public purpose and in the public interest of the Kodiak Island Borough (the "Borough ") to incur general obligation bonded indebtedness in an amount not to exceed Four Million One Hundred Ninety Thousand Dollars ($4,190,000) for the purpose of paying the cost of planning, designing, and constructing school and related capital improvements in the Borough. Section 3: Section 4: The Borough is authorized to borrow the sum of Four Million One Hundred Ninety Thousand Dollars ($4,190,000) to finance the capital improvements described in Section 4, and the borrowing shall be evidenced by the issuance of general obligation bonds of the Borough; provided that bonds may not be issued for any project unless the project is eligible for debt service reimbursement of at least sixty percent (60 %) by the State of Alaska. The full faith and credit of the Borough are pledged for payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due. The Borough shall submit the following proposition to the qualified voters of the Borough at the October 5, 2004 regular Borough election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved. Kodiak Island Borough, Alaska Ordinance No. FY2005-05 Page I of 2 Section 5: Section 6: Al IcoI. PROPOSITION NO. 2 GENERAL OBLIGATION BONDS FOR KODIAK HIGH SCHOOL VOC ED /CLASSROOM RECLAMATION Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Four Million One Hundred Ninety Thousand Dollars ($4,190,000) to finance the planning, design, and construction of school and related capital improvements in the Borough, including without limitation the projects described below? Pro'ect Estimated Cost Kodiak High School Voc Ed /Classroom Reclamation $4,190,000 Bonds may not be issued to pay costs of a project unless the project is eligible for debt service reimbursement by the State of Alaska. The approximate amount of taxes on $100,000 of assessed real and personal property value (based on total 2004 assessed valuation) required to pay 100% of the debt service for the project above is $ 44.95 per year, and to pay the Borough share of debt service for the project with full State debt service reimbursement is $17.98 per year. The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. FY2005 -05) The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate next to an oval provided for marking the ballot for voting by hand or machine: PROPOSITION NO. 2 YES 0 NO o Sections 2 and 3 of this ordinance shall become effective only if the proposition described in Section 4 is approved by a majority of the qualified voters voting on the proposition at the October 5, 2004 regular Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SECOND DAY OF SEPTEMBER 2004 KODIAK ISLAND BOROUGH 7/76 u dith A. Nielsen, MC, Borough Clerk 1 or f;a h rialla 1 Prloux. ouah Mavor Kodiak Island Borough Alaska Ordinance No. FY2005.05 Page 2 of 2 PROJECT DESCRIPTION The scope of work for this project is to reclaim what used to be our Vocational Shop spaces as career pathway curricula areas. This wing has the high ceilings and ventilation needed for these types of career pathway classrooms. The scope of work for the renovation has been adjusted to reflect conmumity input and a previous bond proposed to the voters. This work would include replacing partitions, flooring, ceilings, and paint; and providing new heating controls and replacing lighting and power devices. New computer outlets and a public address/ intercom system are also required in the existing reclaimed vocational area. This bond would include square footage for this facility with at least the following features: 1. Remodeled space of 21,000 square feet of remodeled space to accommodate the implementation of the career pathways plan 2. Additional space of 6500 square feet to include shop space, vocational education classroom, graphic design lab, night use entrance for the gym and commercial foods classroom. This renovation would allow for expanded curricula that could be adjusted on a semester by semester basis based on the interests of the students and their families as well as the needs of Kodiak Island communities. The School District intends to offer a career technology pathway accessible to town and village students to prepare all interested students for work in communities across Kodiak Island. Continued voc /tech education designed in cooperation with Kodiak College would provide post secondary opportunities in the same facilities for those adults interested. Estimated Cost State Reimbursement of 60% Net Borough Debt Estimate $4,190,000 $2,514,000 $1,676,000 0 0 0 0 0 October 15, 2004 Kodiak Island Borough Pat Carlson, Borough Manager 710 Mill Bay Road Kodiak, Alaska 99615 Dear Pat: The Kodiak Island Borough School District Board of Education would like to meet with Assembly members regarding the need for additional classroom space in the town elementary schools. As Superintendent of Schools, I feel strongly that there is an immediate need for two classrooms as soon as possible, potentially one at North Star Elementary and one at Main Elementary. The Board of Education would like the opportunity to discuss possible solutions to the classroom needs which limit effective student instruction and success for all students. Please contact my office at 486 -9210 to let me know of the Assembly's availability to meet with the Board of Education on this situation. Thank you, Betty Walters Superintendent kee cc: Judi Nielsen, Borough Clerk Kodiak Island Borough Assembly School Board Members Kodiak Island Borough School District 722 Mill Bay Road Kodiak, AK 99615 Office of the Superintendent (907) 486-9228 15) IE CEO WE 11 OCT 1 5 2004 BOROUGH CLERK'S OFFICE KODIAK ISLAND BOROUGH CLERKS OFFICE COPIED TO: v ASSEMBLYV _ YORE _ MANAGERS -R Introduction: Background: KODIAK ISLAND BOROUGH AND KODIAK ISLAND BOROUGH SCHOOL DISTRICT JOINT AD HOC COMMITTEE REPORT ON IN -KIND SERVICES October 18, 2004 During the summer of 2003, the Kodiak Island Borough (KIB) and Kodiak Island Borough School District (KIBSD) commissioned an ad hoc committee of four members to jointly review and formulate draft policy concerning the in -kind contributions that are part of the annual local component of the funding of public education. The committee was made up of Kodiak Island Borough Assembly members Robin Heinrichs and Pat Branson, and Kodiak Board of Education members Norm Wooten and Jeff Stephan. Support staff from the Kodiak Island Borough (KIB) and the Kodiak Island Borough School District (KIBSD) assisted with research and materials. The goal was to establish common rules to govern the application of and accounting for the value associated with these in -kind services. The need for this process arose from past confusion and disagreements over the proper method to determine and account for in -kind services. This was in large part a result of a lack of direction at the State level about how to implement the statutory requirement that the value of in -kind services be a part of a school district's annual report. The controlling statute is AS 14.17.990 (6), which states that local contribution "means appropriations and the value of in -kind services made to a district by the local city or borough." These terms are further defined as "appropriation," which is a combination of money appropriated to a district's school operating fund by the city or borough, and "value of in -kind services" as the value of in -kind services performed for a district by the city or borough as reported in the district's school operating fund. The definitions offer little guidance for the community, since, in many cases, a city or borough may perform services on the school district's behalf that the school district may not wish to include in their annual report. The cost to the community is still there, but the school district may not agree that the value should be counted as part of the local contribution to public education. When communities such as ours reach the funding cap, the proper analysis of and accounting for local funding contributions becomes critical. An understatement of in -kind services may result in the State withholding formula funding from the district. In the case of overstating the amount the State may take a for funding on a dollar- for - dollar basis. The stakes are high for both the Borough and the School District to accurately report the in -kind contributions as part of the local contribution to public. Page 1 of 5 In light of the history associated with the accounting for in -kind services, the Assembly and School Board felt the need to direct the in -kind committee to review the various categories of in -kind services and make recommendations to rationalize this accounting. The committee met numerous times and methodically reviewed and analyzed each of the in -kind categories. The conclusions of the committee are listed as follows: Findings: The committee began by reviewing historic examples of in -kind contributions. The goal was to review the known history and to resolve any issues associated with past practices. The following is an outline of the review: • Insurance Premiums: Accounting for the actual cost of the insurance premiums is fairly straightforward. It is the amount of property and liability insurance the Borough pays for KIBSD buildings, vessel, vehicles and general liability. Since this is directly attributable to the School District's operation, it was agreed that all of these expenses should be accounted as an in -kind contribution. • Mental Health Services: These are provided by the Borough by contract to insure the access of high quality licensed mental health services for the students. Historic areas of concern involved the quality and cost of these services. The committee agreed that there should be accountability provisions within the contract, but that the cost of the contract would be accounted as an in -kind contribution to public education. • Allocation of MIS Expenses: These allocated costs to the KIBSD are for the provision of hardware, software, operational costs and technical support based on the proportion of the total cost for the Borough's MIS department. KIBSD is currently charged around 20% of the total budget. KIB covers the cost of a mainframe, custom KIBSD software and the proportional technical and operational service. Based on past experience, it was agreed that the allocated cost for KIBSD would be the actual costs of direct services, plus a proportional share of the common charges as a percentage of system time (please see "Attachment A" for current allocation), plus the loaded hourly rate for direct staff support. • Audit Expenses: This item is the actual cost of the KIBSD audit required by state statute. The borough provides this as part of a master contract with an auditing firm as part of the duties of running the central treasury. The annual audit is important to insure clear and direct oversight over both KIB and KIBSD operations. The committee agreed that the KIBSD portion of this audit is to be fully applied as an in -kind contribution. Page 2 of 5 • Allocated Costs of Grounds Maintenance: Historically, this category has been limited to expenses associated with snow removal and ice control within KIBSD parking lots. To insure cost efficiencies and safety, the Borough has administered this service under a master contract with a local snow removal contractor. The expenses associated with snow removal and ice control at KIBSD facilities are accounted for separately under the master contract. The committee agreed that the allocated contract expenses for the KIBSD had been appropriate in the past should be treated as an in -kind contribution. • Minor Maintenance: Minor maintenance has not been adequately defined by the State or by the local government. The committee discussed establishment of a threshold dollar value to help define this body of work. The committee agreed that minor maintenance would be that body of maintenance and /or repair work costing less than $10,000 per occurrence per site. Painting of a classroom in a school would likely be minor maintenance. Painting of the entire interior of a school, or of several schools, would likely exceed the value limitation and be considered as a major repair. It is clear that minor maintenance could quickly become major repair if not addressed in a °timely fashion. This would not be in the best interest of either the KIBSD or the KIB. The committee agreed that an annual maintenance program be developed through collaboration between the KIB Engineering and Facilities Department and the KIBSD Maintenance Department. The joint list resulting from this effort would be prioritized and submitted to both KIB and KIBSD by the end of October to become part of the annual budget process. Minor repairs that are taken from the mutually agreed list of projects for the fiscal year and are funded by the Borough would become part of the in -kind contribution. Major repairs would not be part of the in -kind calculation. • Crossing Guards: The committee agreed to not count this cost within the in -kind contribution and to not view this decision as establishment of any precedent relevant to future disputed services. • Disputed Services The committee discussed where the School District and the Borough might disagree that a provided service should be included within the in -kind contribution as a component of the local funding of public education. The committee determined that a standing committee comprised of members of both bodies should be established to review these issues until a resolution is reached. In addition to a review of the historic examples of in -kind contributions, the committee attempted to address other situations that might impact the in -kind contribution calculation. Of particular interest was the subject of joint use of school facilities. The following is a recap of one example of a joint use of a school facility: • Allocation of Schooi- related Swimming Pool Expenses. The high school swimming pool is used as part of the instructional program. Other members of the community not associated with a school program also use it. The School District maintains that the non - curricular use of the pool should not be funded on the back Page 3 of 5 of the KIBSD budget. Identification of the operational costs associated with each use is difficult since the utility systems for the pool are not separate from the rest of the high school facility. The committee agreed that swimming pool operational expenses associated with school programs and instruction will be funded within the KIBSD budget. Expenses associated with swimming pool operations not related to the instructional program should not be borne by the KIBSD operational budget and should not be part of an in -kind calculation. The committee agreed that the KIB and KIBSD staff should work to determine an equitable allocation of the pool expenses that are not related to instruction use of the pool. Funding for these expenses should be provided outside the KIBSD budget. The KIBSD committee members were asked if the School District believed that other joint use situations should be examined. KIBSD has the ability to charge for other facility usage through the Community Schools program. Therefore, the swimming pool was the only significant example of a joint use that placed a burden upon the School District budget. Summary and Recommendations: It is clear that this process has been good for both the Borough and the School District. Even though informal, it allowed for relatively quick and constructive dialogue with all participants working towards a common goal of reducing confusion and achieving a higher level of predictability for KIBSD funding and the budgets for each entity. The discussion was straightforward, centering on services that are bid or direct cost items like audit or insurance. Allocated costs were more complicated to analyze. The principle issue with allocated costs is the overall fairness of the allocation. Issues like minor maintenance will require continued dialogue and discussion. Nevertheless, a program was set forth to bring some structure to the process of identifying maintenance project timeframes and documentation for inclusion within the annual budgets. In addition to the review and establishment of policy relating to historic and foreseen practices of in -kind contribution accounting, the committee agreed upon several recommendations to the parent governing bodies. • Establish the practice of "calibration" of the annual Borough in -kind contribution. Simply put, this would require an annual audit of the actual in -kind expenditures. The calibration would also require that a percentage of the local contribution to public education be retained to be used in a final reconciliation of the actual in -kind contribution. The actual costs of in -kind services would be compared with the budgeted amounts for the year. If the audit revealed that the Borough had not expended the budgeted amount, the Borough would remit the difference to the School District in cash. If the Borough expended more than the budgeted amount, the Borough would reduce the retained funds by the amount of the over - expenditure. The actual amount of the retained funds would be negotiated between the Borough Manager and the School District Superintendent. In this way, the School District would receive the exact amount of local contribution represented by the Borough budget. This process should eliminate the danger of the State auditing the actual in- kind expenditures and reducing the formula payment as the result of an overstatement or understatement of Page 4 of 5 The committee has done its best to address many of the chronic disputes relating to the accounting for in- kind services that have existed between the Kodiak Island Borough and the KIB School district for many years. The committee not only reached consensus on these issues, but also established a mechanism to deal with future disagreements. The committee was always mindful of the impact these deliberations might have upon the welfare of the Borough's public education program. This is especially important in light of the fact that the Borough has reached the State "cap" on local funding of education. This report is respectfully submitted to the Kodiak Island Borough Assembly and the Kodiak Island Borough School Board for consideration and adoption. We urge the governing bodies to include the provisions of this report within a Letter of Understanding to be adopted by both the KIB and the KIBSD. This Letter of Understanding will establish a procedure for governing the accounting and application of in -kind services. Respectfully submitted, IL 9 Norm Wooten Robi Heinrichs KIBSD KIB local contribution. The reconciliation of the actual in -kind contribution shall be completed by the 30 of July following the close of the fiscal year. • Establish this committee as a standing committee of the two parent organizations. The purpose of the standing committee would be to review future disputes related to in- kind contributions and to act as a forum to resolve other disputes between the parent elected bodies. The committee was of the opinion that the small size of the standing committee would be more conducive to conflict resolution and productive joint tasks. Conclusion: Page 5 of 5 Pat Branson KIB