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2012-05-03 Regular Meeting KODIAK ISLAND BOROUGH Assembly Regular Meeting May 3, 2012 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, May 3, 2012, in the Assembly Chambers of the Kodiak Island Borough Building, 710 MN Bay Road. The meeting was called to order at 7:30 p.m. The invocation was given by Sergeant Major Dave Blacketer of the Salvation Army. Mayor Selby led the Pledge of Allegiance. Present were Mayor Jerome Selby, Assembly members Carol Austerman, Jerrol Friend, Dave Kaplan, Chris Lynch, Mel Stephens, and Louise Stutes. Staff members present were Manager Rick Gifford, Assessor Bill Roberts, Community Development Director Bud Cassidy, Engineering and Facilities Director Woody Koning, Finance Director Karl Short, Borough Clerk Nova Javier, and Assistant Clerk Jessica Kilborn. KAPLAN moved to excuse Assembly member Bonney who was absent due to personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA FRIEND moved to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS Mayor Selby presented the Student of the Month Award for May 2012 to Leila Pyle, a junior at the Kodiak High School. Mayor Selby proclaimed April 30 through May 5, 2012, as Municipal Clerks Week extending appreciation to Borough Clerk Nova Javier, Deputy Clerk Marylynn McFarland, Assistant Clerk Jessica Kilborn, and to all municipal clerks for the vital services they perform and their exemplary dedication to the community they represent. Mayor Selby proclaimed May 2012 as Older Americans Month in Alaska, and encouraged citizens to take time to engage with older Alaskans, and to acknowledge their ongoing and valuable contributions to our communities. Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1045 CITIZENS' COMMENTS Margaret Hall, Betty Walters, and Jacqueline Madsen spoke in support of the Assembly approving funding for the long -term care facility. Reed Oswalt spoke on landfill issues in relation to his property. Joe Floyd spoke in support of honoring Mr. Ian Fuip, City Parks and Recreation Department Director, by dedicating the new recreational building in Mr. Fulp's name, due to his 40 years of service to the community. Joe Macinko supported an independent overseer /manager for the Kodiak High School Renovation and Remodel project. He disagreed with statements made that the pool project was poorly managed by the Borough. Debra Kirk spoke in support of funding the school district budget to the cap. Shauna Torgerson, Administrator of Bay View Assisted Living Center, spoke in support of the Assembly postponing action on funding the long -term care center in order to consider the proposal made by Bay View. Pat Branson, Executive Director of Senior Citizens of Kodiak and member of Alaska Commission on Aging and National Council on Aging Leadership Council, spoke in support of funding for the long- term care center and spoke against the Bay View complex housing the long -term care center. Margaret Mercer, Nelson Jennings, and Chris Bullert, spoke in support of continued funding for Threshold Recycling Services. COMMITTEE REPORTS None. PUBLIC HEARING 1. Ordinance No. FY2012 -19 Rezoning a Tract of Land Located in Old Harbor From R1- Single Family Residential To I- Industrial (P &Z Case 12 -030, Sage Technologies, LLC). KAPLAN moved to adopt Ordinance No. FY2012 -19. A petition for the rezone of a tract of land in Old Harbor came as a request before the Planning and Zoning Commission. Not only was this the site of a proposed communications tower providing broadband service for community cell phones and internet, this area also included the Old Harbor Landfill. The rezone to I- Industrial would allow the landfill and support activities to expand without coming back to the Commission. Three public hearing notices were mailed out on Monday, April 23; no responses were received. Mayor Selby opened the public hearing. Seeing and hearing none, Mayor Selby closed the public hearing. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Kaplan, Lynch, Stephens, and Stutes. Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1046 2. Ordinance No. FY2012 -20 Amending Title 3 Revenue and Finance, Chapter 3.35 Real Property Tax By Adding Section 3.35.085 Method of Determining the Assessed Value of Property That Qualifies for a Low Income Housing Tax Credit Under 26 USC 42. AUSTERMAN moved to adopt Ordinance No. FY2012 -20. The property located at 2610 Mill Bay Road, known as the Fir Terrace Apartments, requested, in accordance with AS 29.45.110(d), that the Borough exempt the property from the full and true valuation requirement of AS 29.45.110(a) and assess its property based on actual rents. The assessor found that this property did qualify as a Low Income Housing Tax Credit (LIHTC) property under 26 CFR 42 and the qualification date was after January 1, 2001. To make a decision on whether to honor the request or not, according to the State Assessor, the Borough must first adopt an ordinance to review such requests on a parcel by parcel basis. A substituted version of Ordinance No. FY2012 -20 was provided to the Assembly and the public, and reflected changes as suggested by the Borough Attorney. AUSTERMAN moved to amend Ordinance No. FY2012 -20 by substitution. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Friend, Kaplan, Lynch, Stephens, Stutes, and Austerman. Mayor Selby opened the public hearing. Seeing and hearing none, Mayor Selby closed the public hearing. Assessor Roberts explained the purpose of the ordinance. ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED FIVE TO ONE: Kaplan, Lynch, Stutes, Austerman, and Friend (Ayes); Stephens (No). BOROUGH MANAGER'S REPORT Manager Gifford announced the Community Clean -up Day on Saturday, May 5, which was sponsored by various community agencies. The City of Kodiak would handle large item pickups the week of May 7 -11. MESSAGES FROM THE BOROUGH MAYOR Mayor Selby reported on the Kodiak Archipelago Rural Regional Leadership Forum held the week of May 1. UNFINISHED BUSINESS None. Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1047 NEW BUSINESS Contracts 1. Contract No. FY2012 -18 Auditing Services for Kodiak Island Borough and Kodiak Island Borough School District for Fiscal Years 2013 — 2015. KAPLAN moved to authorize the Manager to execute Contract No. FY2012 -18 with Altman, Rogers, & Company for auditing services for the Kodiak Island Borough and Kodiak Island Borough School District for Fiscal Years 2013 -2015 in an amount not to exceed $395,840. The Kodiak Island Borough issued a Request for Proposals (RFP) for the FY2013 -2015 audits. RFPs were due March 30, 2012, and proposals were received from Altman, Rogers, & Company, KPMG, and Mikundra, Cottrel, & Company. The three proposals were reviewed and evaluated by Finance Director Karl Short, General Accountant Dria Bray - Holloway, KIBSD Director of Finance Luke Fulp, and KIBSD Accountant Cassee Olin. Copies of the evaluations were distributed to the Assembly at the work session of April 26, 2012. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stephens, Stutes, Austerman, and Friend. Resolutions 1. Resolution No. FY2012 -29 Authorizing the Assessor to Assess the Fir Terrace Low - Income Housing Tax Credit (LIHTC) Project Based on Restricted Rents. FRIEND moved to adopt Resolution No. FY2012 -29. This was under consideration with the adoption of Ordinance No. FY2012 -20. The property owners of Fir Terrace Apartments located at 2610 Mill Bay Road made a request to be exempt from AS 29.45.110(a) which required the Assessor to assess properties at their full and true value. In accordance with AS 29.45.110(d) properties that were considered LIHTC properties under 26 CFR 42 were to be exempt from full and true valuation and valued on their actual rents without consideration of the tax credit benefit. If the property qualified as a LIHTC property after January 1, 2001, which was the case for the Fir Terrace Apartments, the Assembly could pass an ordinance stating that it would determine on a parcel by parcel basis whether to allow this type of exemption. KIB Code 3.35.085 gives the Assembly this authority. A memorandum regarding the staffs recommendation was provided to the Assembly. If the resolution passed, the property would be valued based on its actual income without any consideration given to the value of the tax credit benefits. If the resolution failed, Fir Terrace Apartments would be assessed at its full and true value. The difference in assessed value, if the ordinance passed, was a [- $1,530,300], which at a mill rate of 10.75 equated to $16,45073 in taxes. ROLL CALL VOTE ON MOTION FAILED FIVE TO ONE: Austerman, Friend, Kaplan, Lynch, and Stutes (Noes); Stephens (Aye). Kodiak island Borough Assembly Minutes • May 3, 2012 Page 1048 2. Resolution No. FY2012 -27 Approving a Contract Extension Agreement to Extend the Collective Bargaining Agreement Between the Kodiak Island Borough and the International Brotherhood of Electrical Workers Local 1547 and Adjusting the Salary Schedule and the COLA as Agreed to in This Contract to Both Union and Non -Union Employees. AUSTERMAN move to adopt Resolution No. FY2012 -27. During the month of April 2012, the Borough management team consisting of Borough Manager Rick Gifford, Finance Director Karl Short, and Grant Writer /Special Projects Support Meagan Christiansen met with International Brotherhood of Electrical Workers Local Union 1547 negotiating team consisting of IBEW Local 1547 Business Representative Debra Blanchard, Shop Stewards Bill Bissett and Jeff Johnson, and Payroll Accounting Technician Marilyn Ordal to discuss the terms of the IBEW contract which expired December 31, 2011. The union members ratified the contract extension on April 13, 2012. In addition to extending the term of the original contract from December 31, 2011 to December 31, 2013, the agreement reflected a three percent (3 %) cost of living allowance (COLA) for employees, effective January 1, 2012 and, effective January 1, 2013, an adjustment of the salary schedule by an increase of 85% of the Anchorage CPI -U, as measured from July 1, 2011 to June 30, 2012. This resolution applied to both union and non -union employees. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stephens, Stutes, Austerman, Friend, and Kaplan. Mayor Selby recessed the meeting at 8:37 p.m.; the meeting was reconvened at 8:43 p.m. Ordinances for Introduction 1. Ordinance No. FY2012 -16 Amending Various Code Sections in Title 7 Electrons. FRIEND moved to adopt Ordinance No. FY2012 -16 in first reading to advance to public hearing at the next meeting of the Assembly. The ordinance clarified that hand counting of ballots would only pertain to precincts where the optical scans or other computer -read or electronic ballot counting equipment were not used, or in elections where write -in votes should be tallied. The ordinance instituted a requirement to file a declaration of candidacy for those who wished to run a write -in campaign. This amendment would incorporate language in the borough code in order to solidify the process in allowing minor variations in the spelling of write -in candidate names to be counted for a candidate. The ordinance would eliminate the unnecessary process of counting write -in votes on election night and it clarified the role of the receiving team. The effective date of this ordinance would be upon notification from the U.S. Department of Justice of non - objection to the Preclearance Request in accordance with Section 5 of the Voting Rights Act of 1965. The ordinance was reviewed by the Borough Attorney and a corrected copy of Ordinance No. FY2012 -16 was provided. ROLL CALL VOTE ON MOTION CARRIED FIVE TO ONE: Stutes, Austerman, Friend, Kaplan, and Lynch (Ayes); Stephens (No). Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1049 Other Items 1. Approval to Proceed to Final Construction Bid Documents for the Long -Term Care Center Project. AUSTERMAN moved to grant approval to proceed to final construction bid documents for the Long - Term Care Center project in an amount not to exceed $481,653. Per requirements set forth under KIBC 3.30.100 Change Orders - Manager Authority and due to the large amount of the proposed change order, staff felt it was appropriate to bring before the Assembly for approval. On June 2, 2011, the Assembly approved Contract No. FY2011 -33 with Architects Alaska for design services and authorized tasks through the Concept Phase of planning and this work was accomplished. In order for the Design Team to proceed with the completion of the design and construction documents phase, an amendment to the original contract was necessary. Architects Alaska, in its original proposal, placed a value of $481,653 for the phase of the work being requested. STUTES moved to postpone the item to the next regular meeting of the Assembly. ROLL CALL VOTE ON MOTION TO POSTPONE FAILED FOUR TO TWO: Austerman, Friend, Kaplan, and Lynch (Noes); Stutes and Stephens (Ayes). ROLL CALL VOTE ON MAIN MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Kaplan, Lynch, Stephens, and Stutes. Clerk's note: Stephens and Stutes changed their votes to the prevailing side. CITIZENS' COMMENTS None. ASSEMBLY MEMBER COMMENTS Assembly member Stutes commended Borough staff for the quick response regarding Mr. Oswalt's property issue. She spoke in favor of a long -term care facility and spoke against the Borough's ownership of said facility. Assembly member Stephens thanked Mr. Rush and Ms. Torgerson for their efforts on the long -term care facility proposals. Assembly members Friend and Kaplan expressed best wishes to Mr. Al Burch. Assembly member Austerman encouraged the community to participate in the Community Clean -up event. Assembly members Austerman, Friend, Kaplan, and Stutes congratulated the student of the month, Leila Pyle. Assembly members Austerman, Friend, Kaplan, and Lynch thanked the Clerk's Office staff for their hard work. Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1050 • AUSTERMAN moved to reconsider Item 13.D.1 Approval to Proceed to Final Construction Bid Documents for the Long Term Care Center Project. ROLL CALL VOTE ON MOTION TO RECONSIDER CARRIED FIVE TO ONE: Austerman, Kaplan, Lynch, Stephens, and Stutes (Ayes); Friend (No). ROLL CALL VOTE ON MOTION TO GRANT APPROVAL TO PROCEED TO FINAL CONSTRUCTION BID DOCUMENTS FOR THE LONG TERM CARE CENTER PROJECT IN AN AMOUNT NOT TO EXCEED $481,653 CARRIED FOUR TO TWO: Friend, Kaplan, Lynch, and Austerman (Ayes); Stephens and Stutes (Noes). Announcements The next Assembly work session would be held on Thursday, May 10 at 7:30 p.m. in the Borough Conference Room. The next regular meeting was scheduled on Thursday, May 17 at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT KAPLAN moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stephens, Stutes, Austerman, and Friend. The meeting was adjourned at 9:35 p.m. KODIAK ISLAND BOROUGH ATTEST: Jersime M. Selby, Mayor_` Nova M. Javier, MMC, `orough Clerk Approved on: June 7, 2012 Kodiak Island Borough Assembly Minutes May 3, 2012 Page 1051