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2011-05-19 Regular Meeting KODIAK ISLAND BOROUGH Assembly Regular Meeting May 19, 2011 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, May 19, 2011, 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. Captain John Quinn of the Salvation Army provided the invocation. Deputy Presiding Officer Friend led the Pledge of Allegiance. Present were Deputy Presiding Officer Jerrol Friend, Assembly members Carol Austerman, Judy Fulp, Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Finance Director Karl Short, Engineering and Facilities Director Woody Koning, Clerk Nova Javier, and Assistant Clerk Jessica Kilborn. KAPLAN moved to excuse Mayor Selby who was attending a Western Interstate Region Conference. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA AND CONSENT AGENDA AUSTERMAN moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES A. Regular Meeting Minutes of April 7 and April 21, 2011, were approved under the consent agenda. AWARDS AND PRESENTATIONS Deputy Presiding Officer Friend presented the Student of the Month Awards for April 2011 to Andrea Rita Barragan, a senior at Danger Bay School and for May 2011 to Rose Ann Arcilla, a junior at Kodiak High School. Manager Gifford presented the Employee of the Quarter Award to Teresa Medina, Cashier, in the Finance Department. Kodiak Chamber of Commerce Executive Director Trevor Brown provided an annual report and an economic development update. Kodiak Island Convention and Visitors Bureau (KICVB) Executive Director Janet Buckingham provided a presentation on the services of the KICVB. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 909 CITIZENS' COMMENTS Bob Stanford and Dake Schmidt spoke in support of tourism funding and thanked KICVB staff for their hard work on behalf of the community. COMMITTEE REPORTS Assembly member Stutes reported on the Southwest Alaska Municipal Conference (SWAMC) Board meeting that was held on Thursday, May 19, 2011. Assembly member Jeffrey announced that the Kodiak Fisheries Advisory Council (KFAC) would hold a meeting on Friday, May 20, 2011, at the Kodiak College. PUBLIC HEARING A. Resolution No. FY2012 -01 Establishing the Minimum Amount of Funds to be Made Available From Local Sources for the Kodiak Island Borough School District (KIBSD) for the Fiscal Year Beginning July 1, 2011 and Ending June 30, 2012. KAPLAN moved to adopt Resolution No. FY2012 -01. KIBC 3.15.030(B) provided that the school district shall submit to the manager the proposed budget and local support requirements by the 30` of April. The School Board submitted their budget on April 29, 2011. Alaska Statutes 14.14.060C provided that if the Assembly did not, within 30 days, furnish the School Board with a statement (resolution) of the sum to be made available, the amount requested in the School Board budget would be automatically approved. Per Borough Code, the Assembly determined the total amount of money to be made available from local sources for school purposes. KIBC 3.15.050 provided that by June 10 the Assembly would appropriate the amount to be made available from local sources for that purpose in the Borough budget. KIBC 3.35.060(E) provided that the property tax levy for school and municipal purposes would be separately made and fixed and KIBC 3.60.020 provided that all motor vehicle registration • taxes would be allocated to the area wide school system. Deputy Presiding Officer Friend opened the public hearing. Aaron Griffin, Lisa Johnson, Marilyn Davidson, Fran March, Mitchell Davidson, Nancy Moon, Bill Watkins, Lucas Gerlitz, John Cannon, Rose Ann Arcilla, Tasha Pederson, Kimberly Cumbert, Rosevonne Sala, Puni Timu, Gene Gill, Carl Burnside, Margaret Bosworth, Paul Gill, Chris Otto, Jennie de la Fuente, Carolyn Craig, Sharon Blakeslee, Cassie Olin, Cathy Wilson, Ben Kervickslauger, Melissa Gorton, KIBSD Superintendent Stewart McDonald, Petal Ruch, Robert Otto, Ron Bryant, Mary Forbes, Michael Remy, Deborah Kirk, Kindra Barry, Kim Dorner, Hannah Dunbar, Nique de la Fuente, Suzanne Repoza, Angie Chervenak, KIBSD Finance Director Luke Fulp, Katie Oliver, Nancy Castro, Phil Johnson, and Elizabeth Dano spoke in opposition of amending Resolution No. FY2012 -01 and supported full funding for the KIBSD to continue education efforts, sports, and activities. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 910 Lorna Arndt spoke in support of using Alaska Permanent Fund Dividends to fund education. Mel Stephens spoke in support of amending Resolution No. FY2012 -01. Deputy Presiding Officer Friend closed the public hearing and recessed the regular meeting at 9:50 p.m. The regular meeting was reconvened at 10 p.m. JEFFREY moved to amend Resolution No. FY2012 -01 to fund the School District budget up to $9 million. ROLL CALL VOTE ON MOTION TO AMEND FAILED SIX TO ONE: Austerman, Friend, Fulp, Kaplan, Lynch, and Stutes (Noes); Jeffrey (Aye). ROLL CALL VOTE ON MAIN MOTION CARRIED SIX TO ONE: Friend, Jeffrey, Kaplan, Lynch, Stutes, and Austerman (Ayes); Fulp (No). B. Ordinance No. FY2011 -16 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.45 Severance Tax Section 3.45.020 Resources Subject to Tax and Section 3.45.010 Definitions. AUSTERMAN moved to adopt Ordinance No. FY2011 -16. This ordinance would change the severance tax rate from the current mill rate to a fixed percentage. Instead of spreading severance tax revenues across all area -wide funds that levied a property tax, all proceeds would go to the general fund. Under the current regulations, the severance tax rate would have to be increased any time an area -wide service would be started if it was going to be financed with property taxes. With the current Borough accounting system, allocating severance taxes to more than one fund would be extremely difficult. This also clarified that the severance tax rate would not be set when the annual budget was adopted. AUSTERMAN moved to amend Ordinance No. FY2011 -16 by substitution. ROLL CALL VOTE ON MOTION TO AMEND CARRIED SIX TO ONE: Jeffrey, Kaplan, Lynch, Stutes, Austerman, and Friend (Ayes); Fulp (No). Deputy Presiding Officer Friend opened the public hearing. Mel Stephens spoke in opposition of Ordinance No. FY2011 -16. Aaron Griffin asked for clarification regarding the severance tax and the levied mill rate and spoke in support of Ordinance No. FY2011 -16. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 911 Deputy Presiding Officer Friend closed the public hearing. KAPLAN moved to postpone Ordinance No. FY2011 -16 to the next regular meeting of the Assembly. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED SIX TO ONE: Jeffrey, Kaplan, Lynch, Stutes, Austerman, Friend (Ayes); Fulp (No). BOROUGH MANAGER'S REPORT Manager Gifford reported on the following: • Success of the Spring Clean -up Event on May 7, 2011. • Borough and City Staff meeting with Alaska Department of Transportation (ADOT) Director to discuss various Kodiak DOT projects of interest to the public. • State Legislative session update. • Coastal Management Program was not extended and grant funding would be reduced. Concerns were expressed on how this would affect the smaller communities. Assembly members discussed the possibilities of the Borough's and SWAMC's involvement in the process. MESSAGES FROM THE BOROUGH MAYOR (Deputy Presiding Officer) None. UNFINISHED BUSINESS None. NEW BUSINESS Contracts None. Resolutions None. Ordinances for Introduction 1. Ordinance No. FY2011 -01A Amending Ordinance No. 2011 -01 Fiscal Year 2011 Budget by Amending Budgets to Account for Various Revenues that are Over and Under Budget, Provide for Additional Expenditures, Budget New Projects, Accept Grants, and Move Funds Between Projects. JEFFREY moved to adopt Ordinance No. FY2011 -01A in first reading to advance to public hearing at the next regular meeting of the Assembly. This ordinance: • Reduced the budget for real and personal property tax revenues which will be $134,000 less than the original budget. • Increased the severance tax revenue by $250,000. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 912 • Reduced the raw fish tax budget by $173,615 due to lower than expected revenues. • Reduced the General Fund budget for interest earnings by $200,000 due to poor market conditions. • Increased the General Fund budget by $522,059 due to an Exxon Valdez settlement. • Increased the General Fund fixed asset revenue line item by $6,047 due to the sale of fixed assets that were not budgeted. • Increased the budget for attorney services by $40,000. • Increased the Health and Sanitation department by $18,315 and decreased the Culture and Recreation Department by the same amount. • Reduced the contribution to libraries by $6,000. • Increased the General Fund transfer to Fund 290 special projects by $147,372 (Code Update $95,000 and Road System Trails Plan $75,000). • Increased the surveys account in the Land Sales Fund by $33,000. • Increased the Building and Grounds Fund MHC Apartment department by $8,427. • Reduced the Coastal Management Department by $12,000. • Reduced the Local Emergency Planning Committee grant by $6,825. • Increased the Building and Grounds Fund School Building Major Repairs by $30,000. • Reduced the Facilities Fund transfer to the Debt Service Fund by $26,000. • Increased Project 03119 by $165,000, New Swimming Pool, to cover the costs of artwork and additional construction. • Accepted and budgeted a grant increase of $218,374 in the State Seismic Reimbursement Project. • Accepted and budgeted a $462,000 grant for the KMS Seismic Upgrade. • Adjusted the expenditure budget in Funds 450 and 469 due to overages in some projects and savings in others per the attached schedule. • Budgeted a loan of $2,612,000 for landfill improvements (project 07013). • Budgeted for an additional $917,197 in grants in Fund 450. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Austerman, Friend, Fulp, and Jeffrey. 2. Ordinance No. FY2012 -01 Levying Taxes on All Taxable Real and Personal Property Within the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal year Commencing on the First Day of July 2011 and Ending on the Thirtieth Day of June 2012 (Fiscal Year 2012 Budget). KAPLAN moved to adopt Ordinance No. FY2012 -01 in first reading to advance to public hearing at the next regular meeting of the Assembly. This ordinance included funds to be spent in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, and Enterprise Funds. This ordinance also levied a tax on the real and personal property within the Borough. Finance Director Short and Engineering and Facilities Director Koning provided additional information regarding the proposed budget. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 913 JEFFREY moved to extend the meeting time until midnight. ROLL CALL VOTE ON MOTION TO EXTEND THE TIME OF THE MEETING CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend, Fulp, Jeffrey, and Kaplan. ROLL CALL VOTE ON MAIN MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend, Fulp, Jeffrey, and Kaplan. Other Items 1. Declaring a Seat on the Womens Bay Service Area Board Vacant. JEFFREY moved to accept, with regret, the resignation of Ms. Amanda Henderson from the Womens Bay Service Area Board for a term to expire October 2013, and direct the Borough Clerk to advertise the vacancy per Borough Code. On April 26, 2011, Ms. Amanda Henderson submitted a notice of resignation from the Womens Bay Service Area Board for a term to expire October 2013. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Austerman, Friend, Fulp, Jeffrey, Kaplan, and Lynch. 2. State of Alaska Alcoholic Beverage Control Board Application for Restaurant Designation Permit for Angelo's, 2625 Mill Bay Road, Kodiak, AK, Lic. No. 3458 (Licensee: Anna Maria Kaloumenou). JEFFREY moved to approve the State of Alaska Alcoholic Beverage Control Board Application for a Restaurant Designation Permit for Angelo's, 2625 Mill Bay Road, Kodiak, AK, Lic. No. 3458 (Licensee: Anna Maria Kaloumenou). Angelo's Restaurant filed a Restaurant Designation Application with the Alcoholic Beverage Control (ABC) Board that would allow persons under the age of 19 to enter licensed premises for the purpose of non - alcoholic related employment or dining, pursuant to 15 AAC 104.715 -795 and AS 04.16.049. AAC, Title 13, Chapter 104- 725(e) stipulated that an application for a new restaurant designation must be approved by the local governing body having jurisdiction over the area in which the licensed premises exists. Therefore, the ABC Board forwarded the application to the Borough for Assembly approval. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Fulp, Jeffrey, Kaplan, Lynch, and Stutes. CITIZENS' COMMENTS Mel Stephens spoke on the KIBSD's and Assembly's budget process. Stewart McDonald, KIBSD Superintendent, spoke on the KIBSD's funding requests. Kodiak Island Borough Assembly Minutes May 19, 2011 Page 914 ASSEMBLY MEMBER COMMENTS Assembly member Lynch announced that a Trails Plan meeting was scheduled on June 1, 2011, in the Kodiak High School Commons and that comments on the plan were being accepted. Assembly member Kaplan thanked Finance Director Short and Engineering and Facilities Director Koning for their efforts on the proposed FY2012 budget. Assembly member Fulp thanked the community for participating in the clean -up day and spoke on the value of education. Assembly members Austerman, Stutes, and Friend expressed appreciation for the public testimony that was presented at the meeting. Announcements The Assembly would hold work sessions on Thursday, May 26, 2011, at 6 p.m. in the Borough Conference Room and on Friday, May 27, 2011, at 6 p.m. in the Borough Conference Room. The next regular meeting of the Assembly was scheduled on Thursday, June 2, 2011, at 7 :30 p.m. in the Borough Assembly Chambers. The Borough Offices would be closed on Monday, May 30, 2011, in observance of the Memorial Day Holiday. ADJOURNMENT JEFFREY moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Austerman. The meeting was adjourned at 11:42 p.m. KODIAK ISLAND BOROUGH - Lt ATTEST: ATTEST: J-.ome M. Selby, Mayor inn \ , '- nAA/ Nova M. Javier, NMM Borough Clerk Approved: July 7, 2011 Kodiak Island Borough Assembly Minutes May 19, 2011 Page 915