02/07/2013 Regular Meeting KODIAK ISLAND BOROUGH
Assembly Regular Meeting
February 7, 2013
A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, February 7, 2013,
in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting
was called to order at 7:30 p.m.
The invocation was given by Major John Quinn of the Salvation Army. Mayor Selby led the Pledge
of Allegiance.
Present were Mayor Jerome Selby, Assembly members Carol Austerman, Tuck Bonney, Aaron
Griffin, Dave Kaplan, Chris Lynch, Mel Stephens, and Louise Stutes. Staff members present were
Borough Manager Bud Cassidy, Community Development Acting Director Duane Dvorak, Finance
Director Karl Short, Solid Waste Manager /Environmental Specialist Mike Patterson, Clerk Nova
Javier, and Assistant Clerk Jessica Kilborn.
APPROVAL OF AGENDA AND CONSENT AGENDA
KAPLAN moved to approve the agenda and consent agenda.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
Special Meeting minutes of December 27, 2012 and Regular Meeting minutes of January 3, 2013,
were approved under the consent agenda.
AWARDS AND PRESENTATIONS
Mayor Selby presented Student of the Month Awards for December 2012 to Emma Nelson, a Junior
at Port Lions School and for January 2013 to Denise De Lota, a Junior at Kodiak High School.
Mayor Selby proclaimed the month of February 2013 as National Teen Dating Violence Awareness
and Prevention Month.
CITIZENS' COMMENTS
Jennifer Richcreek, Margaret Hall, Carolyn Floyd, Margaret Roberts, Judy Fine, Ivar Malutin, Sarah
Thayer, Marlys Cozart, Sue Jeffrey, Mark Olsen, Ron Acarrequi, Paul Zimmer, Alan Wolf, Pat
Branson, Elaine Loomis - Olsen, Scott Arndt, and Jennifer Eubank spoke in support of the Long -
Term Care Center.
Dan Rohrer and Scott Arndt spoke on concerns regarding Resolution No. FY2013 -11.
Iver Malutin announced his resignation from the Prince William Sound Citizens Regional Advisory
Council and thanked the Mayor and Assembly for allowing him to serve on the Council. He spoke
on his service on the Alaska Commission on Aging.
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Caroline Storm, with Architects Alaska, provided clarification on the status of documents relating to
the Long -Term Care Center.
COMMITTEE REPORTS
Providence Kodiak Island Medical Center (PKIMC) Executive Director, Don Rush gave an
operational report of PKIMC. Mr. Rush also addressed the Long -Term Care Center project,
PUBLIC HEARING
A. Ordinance No. FY2013 -13 Rezoning Lot 1 U.S. Survey 3945 and the Remainder of ADL 44355
From a Combination of PL- Public Use Zoning District and C- Conservation Zoning District To (-
Industrial Zoning District (Case 13 -012).
AUSTERMAN moved to adopt Ordinance No. FY2013 -13.
Lot 1 of United States Survey 3945 and the remainder of ADL 44355 was a 202.51 acre tract
currently utilized as the community's solid waste processing and disposal site. The current use was
granted an "exception" to the Borough Zoning Ordinance on April 24, 1968. As such, the use and
structure(s) were regulated as a non - conformity per KIBC 17.140.090. As a nonconforming,
nonresidential use, the current facility and use would not be able to accommodate the expansion
and modernization required in order to comply with the new regulatory environment.
The Planning and Zoning Commission held a public hearing on this request and found the request
consistent with the goals and objectives of the 2008 Kodiak Island Borough Comprehensive Plan
Update. KIBC 17.205.55(6) also required the Assembly to be notified by the Commission of its
actions and its findings.
39 Public hearing notices were mailed out; responses were provided to the Assembly. The
Monashka Bay Road Service Area Board was also advised of the public hearing.
Chaz Glagolich, Tom Lance, and Darlene Turner, Monashka Bay Road Service Area Board
members, spoke in opposition of Ordinance No, FY2013 -13 as presented and noted concerns of
Monashka Bay residents.
Tom Anthony, Douglas Pengilly, Martha McKinney, Paul Zimmer, Amanda Bowers, Molly
McKinney - Miller, and Jean Dixon spoke in opposition of Ordinance No. FY2013 -13 as presented
and urged the Assembly to consider the recommendations of the Monashka Bay Road Service
Area Board.
Marilyn Guilmet urged the Assembly to continue composting operations at the landfill and spoke to
the concerns of the Monashka Bay residents regarding the safety of the community.
Community Development Acting Director Dvorak spoke to the areas that would be included in the
rezone.
GRIFFIN moved to postpone Ordinance No. FY2013 -13 to the next regular meeting of the
Assembly.
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ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED SIX TO ONE: Austerman, Bonney,
Griffin, Kaplan, Lynch, and Stutes (Ayes); Stephens (No).
B. Ordinance No. FY2013 -14 Rezoning of Tract A Lot 2 Block 17 Ouzinkie Townsite Subdivision
From R1- Single Family Residential Zoning District To UNC -Urban Neighborhood Commercial
District (Case 13 -008).
KAPLAN moved to adopt Ordinance No. FY2013 -14.
Tract A Lot 2 Block 17 Ouzinkie Townsite Subdivision was an 8,000 square foot vacant residential
lot. Owned by the City of Ouzinkie, the lot exhibited the attributes that made it a desirable candidate
for the placement of a telecommunications systems relay facility.
Acting upon the imperative for upgrading the community's telecommunications connectivity, the City
entered into a lease with the service provider, and only later realized the conflict between zoning
and use. The City acted pre - emptively to pass a local resolution which recognized the contribution
of the facility to the community's telecommunications requirements, and requested a rezone to a
zoning district that accommodated the use.
The Planning and Zoning Commission held a public hearing on this request and found the request
was consistent with the goals and objectives of the 2008 Kodiak Island Borough Comprehensive
Plan Update.
18 public hearing notices were mailed out; responses were provided to the Assembly.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Bonney, Griffin, Kaplan, Lynch,
Stephens, Stutes, and Austerman.
C. State of Alaska Alcoholic Beverage Control Board Liquor License Application for Transfer of
Ownership, Transfer of Location, and Name Change (Licensee /Applicant: Kodiak Inn, Inc.,
D.B.A. Kodiak Harbor Convention Center).
GRIFFIN moved to voice non - protest to the State of Alaska Alcoholic Beverage Control Board for
the Kodiak Harbor Convention Center's request for transfer of license ownership, location, and
name change. Licensee /Applicant: Kodiak Inn, Inc., D.B.A. Kodiak Harbor Convention Center.
This application for liquor license transfer was to transfer license ownership, location, and name
change to the Kodiak Harbor Convention Center. The Clerk's office followed the procedure in KIBC
5.01.030 New license and transfer procedure. Public hearing notices were mailed to 177
landowners.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Griffin, Kaplan, Lynch, Stephens,
Stutes, Austerman, and Bonney.
D. Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing Regarding the Issuance by
• the Borough of its Long -Term Care Center Revenue Bonds.
This TEFRA Public Hearing was for the purpose of considering the issuance by the Borough of its
Long -Term Care (LTC) Center Revenue Bonds in the principal amount of not to exceed
$20,000,000. The principal and interest on these bonds was expected to be exempt from federal
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February 7, 2013 Page 1159
income tax pursuant to the Internal Revenue Code of 1986, as amended. These bonds were known
as private activity bonds that allowed the LTC facility to be operated by a private entity
(Providence).
The TEFRA Public Hearing provided an opportunity for the public to speak on publically issued
bonds prior to the bonds being issued. This hearing was properly noticed 14 days prior to the
hearing and was required to identify the location of the public hearing and the time it would be
heard by the public body. The process was to open the public hearing and identify for the record
each of the parties that chose to speak. The meeting was to be recorded and closed when all had
spoken. No action by the Assembly was needed on this public hearing.
Dan Rohrer spoke on the risk of issuing a revenue bond.
Pat Branson spoke on the method of payment for long -term care.
Don Rush spoke on the cost incurred for issuing the revenue bonds.
•
BOROUGH MANAGER'S REPORT
Manager Cassidy reported on the following:
• Met with the City of Kodiak and the City was interested in producing Class A compost at the
landfill. There would be future meetings to discuss the overall costs of the operation.
• There would be no Borough taxing of the Kulluk Drill Rig, although the Borough Assessor
was still pursuing the matter.
• The School Board was currently approving art pieces for the Kodiak High School Addition
and Renovation Project. The decision would be made at the next School Board meeting and
the recommendation would be presented to the Assembly for approval.
MESSAGES FROM THE BOROUGH MAYOR
None.
UNFINISHED BUSINESS
None.
Mayor Selby recessed the meeting at 10:10 p.m.; the meeting was reconvened at 10:20 p.m.
NEW BUSINESS
Contracts
1. Contract No. FY2013 -17 Approval of Professional Services Agreement for Project Management
for the Kodiak High School Addition and Renovation Project.
AUSTERMAN moved to authorize the Manager to execute Contract No. FY2013 -17 with Wilson
Engineering, Inc. of Juneau, Alaska for Project Management Services for the Kodiak High School
Addition and Renovation project in an amount not to exceed $326,650.
Kodiak Island Borough solicited proposals to provide Project Management Services for the Kodiak
High School Addition and Renovation in accordance with KIB Code 3.30.070. Five proposals were
received and three firms were invited to make a live presentation. The proposals and presentations
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were scored by staff, and Wilson Engineering, Inc. was selected for negotiations. Staff negotiated
scope, price, and schedule with Wilson Engineering, Inc. which resulted in the contract.
The contract amount was not to exceed $326,650 based on an estimate of hourly rates, number of
hours expected to be worked, and reimbursable expenses. The contract submitted for approval was
for the time period through December 31, 2013. Assuming both parties agreed, it was staffs
intention to renew the contract for 2014 and 2015 through completion of the KHS Addition and
Renovation project. There were adequate funds in the budget to perform this scope of work.
Wilson Engineering, Inc. would provide day -to -day management of the project, including monitoring
the schedule and budget, contractor work, and coordination of the activities of the construction team
(Contractor, NE, KIBSD, etc.). They would work in close coordination with Engineering /Facilities
(E/F) staff and provide regular project updates to the Assembly. A detailed scope of work was
provided as an exhibit to the contract.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stephens, Stutes,
Austerman, Bonney, and Griffin.
2. Contract No. FY2011 -21 #3 Amending Contract No. FY2011 -21 Architectural Design Services
for the Kodiak High School Renovation Project to Provide for an Onsite Observer.
BONNEY moved to authorize the Manager to approve Contract No. FY2011 -21 #3 amending
Contract No. FY2011 -21 to provide for an onsite observer in an amount not to exceed $500,000
and paid on an actual hours worked basis.
The Architectural /Engineering firm for the Kodiak High School Addition and Renovation project,
Jensen Yorba Lott (JYL), proposed to provide an Onsite Observer. The Onsite Observer would
continuously review and verify the quality, quantity, and accuracy of the Contractor's work providing
daily reports to the Project Manager (PM), as well as coordinate activities with the PM and
construction team members. JYL proposed to retain Bill Clay of Kodiak, Alaska for the position. Mr.
Clay had substantial experience working in the Kodiak construction industry, and would bring the
skills and knowledge necessary to provide a significant benefit to the project. Further information
was contained in memos provided by E/F Director Woody Koning and Tony Yorba.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stephens, Stutes, Austerman,
Bonney, Griffin, and Kaplan.
3. Contract No. FY2013 -11 Providing General Contractor /Construction Manager Services for the
Kodiak Long -Term Care Center and Authorizing a Partial Notice to Proceed for the Site
Cleaning Portion of the Contract.
BONNEY moved to authorize the Manager to execute Contract No. FY2013 -11 with Davis
Constructors and Engineers, Inc. of Anchorage, Alaska for General Contractor /Construction
Manager Services for the Kodiak Long -Term Care Center and accept the Guaranteed Maximum
Price in an amount not to exceed $15,374,346 based on funding availability and further moved to
authorize a Partial Notice to Proceed for the site clearing portion of the contract in an amount not to
exceed $550,000.
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Kodiak Island Borough solicited proposals to provide General Contractor /Construction Manager
(GC /CM) services for the Long -Term Care Center in accordance with KIB Code 3.30.070. Five
proposals were received and reviewed by the Architectural /Engineering Review Board and staff at
public meetings. The proposals were scored and Davis Constructors and Engineers, Inc. was
selected for negotiations. Staff negotiated scope, schedule, and price with Davis Constructors
which resulted in the contract.
The GC /CM construction method differed from the traditional Design- Bid -Build approach in several
important areas. With GC /CM, a contractor would be selected based on a combination of cost and
qualifications rather than low bid. The Contractor would be brought in during the design phase and
provide value engineering and cost estimating services. Once the design was completed, the
Contractor would provide a Guaranteed Maximum Price (GMP) to complete the work.
For this project, a purchase order in the amount of $25,000 was issued to Davis Constructors as
compensation for the pre- design services. That design was currently 95% complete and the
Contractor had submitted its GMP, which totaled $15,374,346. Barring any owner- directed scope
changes, the amount represented the maximum construction cost for the project. Any savings
resulting from cost underruns would be returned to the Borough.
In addition to approving the GC /CM contract and accepting the GMP, staff was requesting approval
of issuance of a Partial Notice to Proceed in the amount of $550,000 for the Contractor to perform
site clearing work. In order to meet the project completion date of March 31, 2014, site clearing
needed to begin immediately. There were adequate funds in the current approved budget to
perform the scope of work. Once the Certificate of Need was approved and the Revenue Bonds
had been sold, the balance of the GMP would be submitted for authorization of Final Notice to
Proceed.
ROLL CALL VOTE ON MOTION CARRIED FIVE TO TWO: Austerman, Bonney, Griffin, Kaplan,
and Lynch (Ayes); Stutes and Stephens (Noes).
Resolutions
1. Resolution No. FY2013 -22 Adopting the Kodiak Island Borough Strategic Plan for the Years
2013 -2017.
AUSTERMAN moved to adopt Resolution No. FY2013 -22.
The Assembly held a strategic planning session on January 15, 2013, and the session culminated
in the preparation of Resolution No. FY2013 -22.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Stutes, Austerman, Bonney, Griffin,
Kaplan, and Lynch (Ayes); Stephens (No).
2. Resolution No. FY2013 -23 Establishing the Date for the Citizens Board of Equalization Hearings
for the Year 2013 and Establishing the Date When Taxes Become Delinquent. This item was
approved under the consent agenda.
Alaska Statutes 29.45.240 Establishment of levy and determination of rate. (a) The power granted
to a municipality to assess, levy, and collect a property tax shall be exercised by means of an
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February 7, 2013 Page 1162
ordinance. The rate of levy, the date of equalization, and the date when taxes become delinquent
shall be fixed by resolution.
The rate of levy was required to be set by the Assembly after certification of the roll and final budget
approval. KIBC 3.35.050(A.5) Board of Equalization stated that the board of equalization would
commence hearings on the first Monday in May, unless otherwise changed by resolution. The
resolution confirmed that the Board would meet on Monday, May 6 and Tuesday May 7. Hearings
would continue from day to day as established by the Board of Equalization and the Borough Clerk
until all properly filed appeals had been heard. The resolution also reflected that the date taxes
were due, October 15, 2013, unless the taxpayer elected to pay the taxes in two equal installments,
then the first half was due on August 15, 2013, and the second half was due on November 15,
2013.
3. Resolution No. FY2013 -11 Authorizing a Lease With Providence Health and Services for the
Operation of a Long -Term Care Facility.
BONNEY moved to adopt Resolution No. FY2013 -11.
The Assembly was asked to approve a lease of a proposed building and land to Providence to
operate a Long -Term Care (LTC) facility. Approval of the lease was just one of the critical
milestones that the Assembly would be deciding on to move the project forward. The 20 -year lease
agreement was structured so that all the expenses associated with the sale of up to $20,000,000 of
revenue bonds to build the LTC facility (as well as cover the other expenses associated with the
project (design, staff time, etc.)) were recaptured through the lease payments made to the Borough
by Providence; the monthly lease payment amount would cover the Borough's annual debt
payments on the bonds. Providence would be solely responsible for the day -to -day operation
expenses of the facility.
STEPHENS moved to amend Resolution No. FY2013 -11 as follows:
Page 16, Section 30 Termination to strike out the words:
"At any time following the Effective Date, either KIB or Providence may terminate this
Agreement by one year's advance written notice to the other party. This Agreement shall
terminate one year from the date of such notice without further action by either party and
shall be of no further force and effect other than to perform any obligation incurred but not
paid prior to the termination. If Providence is required to perform any duty or provide any
service under the terms of this Agreement that is in conflict with the philosophy, mission, and
values of Providence Heath & Services, Providence may terminate this Agreement upon
one year's prior written notice to KIB. Upon any such termination, Providence shall
surrender possession of the Long -Term Care Center to KB. On the effective date of any
such termination, KIB shall have the option to purchase any such accounts receivable,
inventory, equipment, or supplies at a value agreed to by both parties. In the unlikely event
that Providence terminates this Agreement prior to the expiration of the term of this
Agreement, Providence agrees to assist KIB in locating, selecting, and transitioning a new
prospective tenant to operate the facility. Providence also agrees to cooperate in such a way
as to allow KIB to show the Long -Term Care Center to a prospective tenant and
accommodate the active transition needs of KIB for the actual termination. KIB agrees to
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February 7, 2013 Page 1163
cooperate in such a way as to accommodate Providence's transition needs and the removal
of Providence's assets. The parties further agree that this Agreement shall automatically
terminate upon the expiration or termination (as applicable) of the Hospital Lease."
Page 8, Section 14 Medicare /Medicaid Participation to strike out the words:
"In the event that Providence is excluded from participation in any federally- funded health
care program during the term of this Agreement, or if at any time after the Effective Date of
this Agreement it is determined that Providence is in breach of this Section, this Agreement
shall, as of Effective Date of such exclusion or breach, automatically terminate."
Page 7, Add new Section 7.5 Guarantee of Revenue Bonds to read:
"Providence agrees unconditionally to guarantee all payments of principal and interest to be
made under any Revenue Bonds issued by KIB in connection with construction of the Long -
Term Care Center."
Page 10, Section 18 Maintenance and Repairs to strike out the words:
"Throughout the term of this Agreement, KIB shall provide and pay for any major
maintenance and repairs. Major maintenance and repairs are defined as repairs equal to or
• greater than $25,000. If a repair is greater than or equal to $25,000, KIB shall be
responsible for the full amount of the repair. Providence shall be responsible for all repairs
less than $25,000. If repairs go over the $25,000 limit because maintenance and repairs
were not accomplished by Providence in a timely manner, KB reserves the right to perform
repairs and maintenance and KIB will be reimbursed by Providence for all costs of such
repairs and maintenance."
Page 7, Section 9 Taxes to strike out the words:
"Providence and KIB agree to negotiate in good faith regarding any KIB property taxes
levied or assessed on the premises owned by KIB and leased to Providence, or any
property owned by Providence during the term of this Agreement."
Page 5, Section 7.1 Construction of Facility to strike out the words:
"...by reason of Force Majeure or as a result of delays caused in whole or in part by
Providence..."
Page 18, Section 33 Assignment and Sublease to strike out from subsection F the words:
"...less a pro -rata share of reasonable maintenance, repair, or administrative handling
costs ".
ROLL CALL VOTE ON MOTION TO AMEND FAILED FIVE TO TWO: Austerman, Bonney, Griffin,
Kaplan, and Lynch (Noes); Stephens and Stutes (Ayes).
ROLL CALL VOTE ON MAIN MOTION CARRIED FIVE TO TWO: Austerman, Bonney, Griffin,
Kaplan, and Lynch (Ayes); Stephens and Stutes (Noes).
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4. Resolution No. FY2013-13 Providing for the Issuance of Long-Term Care Center Revenue
Bonds (Providence Kodiak Island Medical Center) in the Principal Amount of Not to Exceed
$20,000,000 for the Purpose of Providing Funds to Finance, Design, Acquire, Construct, and
Equip a Long-Term Care Center in the Borough and to Do All Things Necessarily Incidental
Thereto, Fixing Certain Covenants Regarding the Payment of the Principal of and Interest on
the Bonds; Providing That Additional Long-Term Care Center Revenue Bonds May Be Issued
on a Parity With Such Bonds Upon Compliance With Certain Conditions; Authorizing the
Execution and Delivery of the Necessary Financing Documents in Connection Therewith; and
Providing the Form and Term of the Bonds.
AUSTERMAN moved to adopt Resolution No. FY2013-13.
The resolution allowed the Borough to issue up to $20,000,000 in revenue bonds to finance a new
Long-Term Care Center in Kodiak. The Borough would receive monthly lease payments from the
Providence Kodiak Island Medical Center. These lease payments would cover all costs associated
with the bond issue. The resolution included principal,interest, and issuance costs. The Providence
Kodiak Island Medical Center would receive Medicaid funding to make these payments.
ROLL CALL VOTE ON MOTION CARRIED FIVE TO TWO: Bonney, Griffin, Kaplan, Lynch, and
Austerman (Ayes); Stephens and Stutes(Noes).
5. Resolution No. FY2013-24 Supporting the Alaska Fire Chiefs Association Self Contained
Breathing Apparatus 2013 Legislative Capital Project.
KAPLAN moved to adopt Resolution No. FY2013-24.
The resolution was requested by Bayside Fire Chief Bob Himes in support of the Alaska Fire Chiefs
Association's (AFCA) request for a statewide capital project to upgrade Self Contained Breathing
Apparatus(SCBA)for Fire Stations across the State of Alaska. This was a project of the Alaska Fire
Chiefs Association to make required upgrades of firefighting SCBAs for fire stations across the
state. The Bayside, Kodiak City, and Womens Bay fire stations were participating in the project.
Total cost for Kodiak fire stations to upgrade before July 2013 would be $89,700. The cost of
upgrading to the new required standard after July 2013 would be $286,000.This was put together
as a statewide funding request to assist smaller departments with limited budgets and to be fiscally
prudent.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Griffin, Kaplan, Lynch, Stephens,
Stutes, Austerman, and Bonney.
Ordinances for Introduction
1. Ordinance No. FY2013-09 Amending Kodiak Island Borough Code of Ordinances Title 15
Buildings and Construction Chapter 15.10 Building Codes and Chapter 15.30 Fire Code to
Standardize the Kodiak Island Borough and the City of Kodiak Building Codes.
AUSTERMAN moved to adopt Ordinance No. FY2013-09 in first reading to advance to public
hearing at the next regular meeting of the Assembly.
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The Kodiak Island Borough and the City of Kodiak operate a combined building inspection program
and agreed to coordinate the building codes adopted by each of the local governments in order to
ensure continuity throughout the jurisdiction of the joint program. A joint Borough/City committee
(Joint Building Code Review Committee) met to review the building codes adopted by the Borough
and City, and the Committee recommended that the Borough Assembly and City Council adopt
updated versions of the building and fire codes.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Kaplan, Lynch, Stutes, Austerman,
Bonney, and Griffin (Ayes); Stephens(No).
AUSTERMAN moved to extend the meeting to midnight.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Lynch, Stutes, Austerman, Bonney,
Griffin, and Kaplan (Ayes); Stephens(No).
Other Items
1. Waive and Release All Attorney-Client Privileged Documents With Respect to the Borough's
Contract with Kodiak Construction Services(KCS).
STEPHENS moved to waive any and all privileges of confidentiality, including the attorney-client
privilege, associated with respect to the communications listed on the attached memo and to
release the documents to the public.
GRIFFIN moved to limit debate on the motion.
ROLL CALL VOTE ON MOTION TO LIMIT DEBATE CARRIED FIVE TO TWO: Austerman,
Bonney, Griffin, Kaplan, and Lynch (Ayes); Stephens and Stutes(Noes).
The debate was limited to three minutes per speaker.
The agenda item was requested by Assembly member Stephens for the purpose of waiving any
and all privileges of confidentiality, including the attomey-client privilege, in association with respect
to the communications listed on a submitted memo. The waiver included releasing the documents
to the public.
ROLL CALL VOTE ON MAIN MOTION FAILED FIVE TO TWO: Austerman, Bonney, Griffin,
Kaplan, and Lynch (Noes); Stephens and Stutes (Ayes).
2. Approval of the Planning and Zoning Commission By-Laws Amendment.
AUSTERMAN moved to approve the amendment to the Planning & Zoning Commission By-laws
Article IX Procedure, Section D New Information.
At the Planning & Zoning Commission's November 21, 2012 regular meeting, the Commission
reviewed and approved changes to its by-laws and recommended that they be forwarded to the
Assembly for consideration and approval. The recommended changes were presented as Article IX
Section D New Information.
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The proposed clarification was for the purpose of giving staff explicit instruction as to how
information received after the stipulated timeframe for receipt of such information was to be handled
and the section would read, "Staff shall not give to the Commission any new information received
less than fifteen days prior to a regular meeting date. Staff shall inform the Commission of new
information received after the fifteen day deadline. That new information may be considered by the
Commission for action at a future meeting or referred to the staff for study ".
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Bonney, Griffin, Kaplan,
Lynch, Stephens, and Stutes.
3. State of Alaska Alcoholic Beverage Control Board Request for Renewal of Liquor License
Application for the Mecca Lounge. Licensee /Applicant: Mecca Inc. This item was approved
under the consent agenda.
The Clerk's office followed the procedure in KIBC 5.01.020 License renewal procedure. After the
Clerk's office routine investigation, it was determined that there were no reasons for the Borough to
voice non - protest. The Assembly voiced non - protest to the State of Alaska Alcoholic Beverage
Control Board for the renewal application to the Mecca Lounge.
4. Confirmation of Mayoral Appointments to the Architectural /Engineering Review Board and Parks
and Recreation Committee (Robert Barton and Michael Scalzo). This item was approved under
the consent agenda.
There was currently one vacancy on the Architectural /Engineering Review Board for a term to
expire December 2015 and one vacancy on the Parks and Recreation Committee for a term to
expire December 2014. The Clerk's Office received the following applications for the boards:
Architectural /Engineering Review Board /Application Received:
Robert (Bill) Barton, January 4, 2013
Parks and Recreation Committee /Applications Received:
Michael Scalzo, December 12, 2012
Gloria Scalzo, December 12, 2012
Ryan Murdock, January 9, 2013
The Assembly confirmed the Mayoral appointments of Mr. Robert Barton to the
Architectural /Engineering Review Board for a term to expire December 2015 and Mr. Michael
Scalzo to the Parks and Recreation Committee for a term to expire December 2014.
5. Confirmation of the Personnel Advisory Board Appointment (Curtis Law). This item was
approved under the consent agenda.
There was one vacant seat on the Personnel Advisory Board for a term to expire December 2015.
On January 17, 2013, the Clerk's Office received an application from Mr. Curt Law for the vacancy.
The Assembly confirmed the appointment of Mr. Curt Law to the Personnel Advisory Board for a
term to expire December 2015.
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6. Declaring the ADF &G Advisory Committee Seat Vacant and Confirming an Appointment to the
Salmon /Herring Vessels Seat on the Kodiak Fisheries Advisory Committee (Oliver Holm). This
item was approved under the consent agenda.
With the restructuring of the Joint Kodiak Fisheries Advisory Committee (KFAC) in 2011, the
Committee was left with a vacant Salmon /Herring Vessels seat. On January 11, 2013, KFAC
Facilitator Trevor Brown notified the Clerk's Office that Mr. Oliver Holm expressed an interest
vacate the Alaska Department of Fish and Game Advisory Committee representative seat and be
appointed to the Salmon /Herring Vessels seat on the Committee.
The Assembly declared the ADF &G Advisory Committee seat vacant and confirmed the
appointment of Mr. Oliver Holm to the Salmon /Herring Vessels seat on the Joint Kodiak Fisheries
Advisory Committee.
7. Appointment Recommendations to the Providence Kodiak Island Service Area Board (Ranney
and Saupe). This item was approved under the consent agenda.
Per Contract No. 97 -07A: "An advisory board meeting the requirements of 7AAC 13.030(a) will be
appointed by Providence. One assembly member shall be appointed by Providence as a full voting
member of the advisory board, and Providence shall give the borough the opportunity for review
and comment before appointments to the advisory board are made." Assembly member Austerman
was the representative to this Board. Providence wished to reappoint Cecil Ranney and Gretchen
Saupe for three year terms. Per the Contract Provision cited above, the Borough Assembly were
given the opportunity to comment before the appointments to the advisory board are made.
The Assembly recommended the appointment of Mr. Cecil Ranney and Ms. Gretchen Saupe to the
Providence Kodiak Island Service Area Board.
8. Declaring a Seat Vacant on the Planning and Zoning Commission (Brent Watkins). This item
was approved under the consent agenda.
On January 16, 2013, the Clerk's Office received notification of Mr. Brent Watkins' resignation from
the Planning and Zoning Commission, for a City seat term to expire December 2013.
The Assembly accepted, with regret, the resignation of Mr. Brent Watkins from the Planning and
Zoning Commission for a City seat term to expire December 2013, and directed the Borough Clerk
to advertise the vacancy per Borough Code.
Mayor Selby recessed the regular meeting at 11:33 p.m. and convened the Board of Adjustment.
BOARD OF ADJUSTMENT
A. Findings of Fact for the Board of Adjustment's Decision Reversing in Part the Planning and
Zoning Commission's Decision on Case 13 -006 Denying the Request of a Variance by
Providing for 20 Parking Spaces Designated for Five Retail Parking Spots, Five Container
Parking Spots, and Ten Tandem Parking Spots_on the Pacific Seafood's Lot.
AUSTERMAN moved to adopt the findings of fact as presented.
Kodiak Island Borough Assembly Minutes
February 7, 2013 Page 1168
.Assembly members Lynch and Stephens each declared a conflict; Mayor Selby ruled in favor of the
conflicts and Assembly members Lynch and Stephens stepped down from the dais.
The Board of Adjustment heard its hearing on this case on December 6, 2012 and postponed the
adoption of findings of fact to January 3, 2013. The Assembly finalized its findings of fact at the
work session of December 27, 2012; however failed to adopt the findings at the January 3, 2013
meeting. The Assembly continued to work with the Borough Attorney to finalize the findings of fact.
ROLL CALL VOTE ON MOTION TO ADOPT THE FINDINGS OF FACT AS PRESENTED
CARRIED UNANIMOUSLY: Bonney, Griffin, Kaplan, Stutes, and Austerman.
Chair of the Board Selby announced that a written decision would follow. The date on the written
decision would be used for further appeal.
Chair of the Board Selby announced that Kodiak Island Borough Section 17.225.100 Judicial
Review stated, Any person aggrieved by a final decision of the board of adjustment under this
chapter may appeal the decision to the superior court within 30 days of the decision. An appeal to
superior court shall be heard solely on the record before the board of adjustment or its hearing
examiner and the commission. The appeal procedure shall be governed by the rules set forth in
Part Six of the Rules of Appellate Procedure of the state of Alaska. The findings of the board of
adjustment shall not be reversed if, in light of the whole record, they are supported by substantial
evidence."
Mayor Selby reconvened the regular meeting at 11:34 p.m.
CITIZENS' COMMENTS
Pat Branson, Don Rush, Margaret Roberts, Margaret Hall, and Sue Jeffrey thanked the Assembly
for its support on the three agenda items regarding the Long -Term Care Center.
Chris Wing spoke against the findings of fact as adopted for the Board of Adjustment Appeal.
ASSEMBLY MEMBER COMMENTS
Assembly member Stutes commented on the survey provided by the Kodiak Chamber of
Commerce.
Assembly members Austerman and Griffin expressed gladness that the Long -Term Care Center
agenda items had been approved and thanked the community for its comments.
Assembly members Kaplan and Lynch congratulated the Student of the Month award recipients.
Assembly member Lynch thanked Mr. Rush for his report on PKIMC's operations.
Assembly member Stephens spoke on concerns regarding the waiver of attorney - client privilege
documents.
Kodiak Island Borough Assembly Minutes
February 7, 2013 Page 1169
Announcements
The next Assembly work session was scheduled on Thursday, February 14 at 7:30 p.m. in the
Borough Conference Room. The next regular meeting was scheduled on Thursday, February 21 at
7:30 p.m. in the Borough Assembly Chambers.
The Borough Offices would be closed on Monday, February 18 in observance of President's Day.
ADJOURNMENT
KAPLAN moved to adjourn the meeting.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Griffin, Kaplan, Lynch, Stephens,
Stutes, Austerman, and Bonney.
The meeting was adjourned at 11:53 p.m.
KODIAK ISLAND BOROUGH
ATTEST: Je '.me M. Selby, Mayor
U '
itt0t)
Nova M. Javier, MMC, B rough Clerk Approved on: March 7, 2013
Kodiak Island Borough Assembly Minutes
February 7, 2013 Page 1170