01/02/2014 Regular Meeting KODIAK ISLAND BOROUGH
Assembly Regular Meeting
January 2, 2014
[11 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, January 2,
2014, 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 Michael Bates of the Salvation Army. Mayor Friend led the
Pledge of Allegiance.
0 Present were Mayor Jerrol Friend, Assembly members Carol Austerman, Tuck Bonney, Aaron
Griffin, Dave Kaplan, Chris Lynch, Frank Peterson, Jr., and Mel Stephens. Staff members
present were Borough Manager Bud Cassidy, Clerk Nova Javier, and Assistant Clerk Angela
MacKenzie.
APPROVAL OF AGENDA AND CONSENT AGENDA
KAPLAN moved to approve the agenda and consent agenda.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
Regular Meeting Minutes of December 5 and December 19, 2013, were approved under the
consent agenda.
f l AWARDS AND PRESENTATIONS
Mayor Friend presented the Student of the Month Awards for December 2013 to Wade
Bartleson, a junior at Port Lions School and David Reft, a junior at Karluk School.
CITIZENS' COMMENTS
Lorne White and Terry Haines spoke on the Chirikof Island cattle and the public meeting that
was scheduled for Tuesday, January 7 and Wednesday, January 8, 2014.
Chastity Starrett, Executive Director Discover Kodiak, spoke in support of Amendment No. 1 to
Contract No. FY2014-02.
COMMITTEE REPORTS
Assembly member Kaplan reported on Director Barbara Bolson's retirement from the Kodiak
College.
Assembly member Lynch reported that the Kodiak Fisheries Work Group was still accepting
responses to the Fisheries Analyst RFP. The next meeting was scheduled for Monday, January
Q6 at 8:30 in the Borough Conference Room and the Board of Fish meeting was scheduled for
�J Tuesday, January 7, 2014 at 8:30 a.m. at the Kodiak Harbor Convention Center.
PUBLIC HEARING
1. Ordinance No. FY2014-10 Amending Various Sections in Title 3 Revenue and Finance
Chapter 3.35 Real Property Tax and Chapter 3.40 Personal Property Tax.
BONNEY moved to adopt Ordinance No. FY2014-10.
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The proposed updates to Title 3.35 and 3.40, Real and Personal Property Tax added
procedures to be followed for exemptions that were not laid out in the current Title. The update
would also add language that added enforcement to the possessory interest tax and clearly 1
stated the intent and legal standing to enforce such a tax. The update also better defined Situs
for personal property, added penalties for not filing required assessment returns and generally
added clarification to areas of the original code that was vague.
Mayor Friend opened the public hearing. Seeing and hearing none, Mayor Friend closed the
public hearing.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Austerman, Bonney, Griffin, Kaplan,
Lynch, and Peterson (Ayes); Stephens (No). (-
2. Ordinance No. FY2014-01B Amending Ordinance No. FY2014-01 by Amending Budgets to °✓
Account for Various Revenues that Are Over Budget, Provide for Additional Expenditures,
and Move Funds Between Projects.
PETERSON moved to adopt Ordinance No. FY2014-01B.
The ordinance would adjust the FY2014 budget as follows:
• Bayside Fire Department needed to move $115,100 to Fund 450 to fully fund the
emergency generator project and these funds were available in the Bayside Fire
Department's Fund Balance;
• several projects in Fund 469 needed to be combined for better project management;
• total project amount of $1,356,438 for the Kodiak Fisheries Research Center (KFRC)
Ventilation Modifications project would need to be made available from the KFRC
retained earnings of which NOAA would be reimbursing the Borough $831,327 upon
project completion;
• combined the Chiniak School Underground Storage Tank Removal and Replacement
project with the Chiniak School Soil Remediation project; and
• combined several Borough Building renewal and replacement projects; and
• budgets needed to be developed for FY2014 Renewal and Replacement projects in
Fund 469 (Borough Building Rehabilitation, Port Lions School Exterior Painting, Middle
School paving, and Auditorium Foyer and Hall flooring)
Mayor Friend opened the public hearing. Seeing and hearing none, Mayor Friend closed the
public hearing.
ROLL CALL VOTE ON MOTION CARRIED FIVE TO TWO: Griffin, Kaplan, Lynch, Peterson,
and Austerman (Ayes); Bonney and Stephens (Noes).
BOROUGH MANAGER'S REPORT
Manager Cassidy reported on the following:
• The second batch of responses to the Fisheries Analyst RFP were being collected; the
first batch of responses to the Fisheries Analyst RFP were rejected.
• Received the Certificate of Occupancy for the Long Term Care Facility which meant
Providence would start paying their lease fees and associated costs. The project came
in under budget and could be ready for patients by February.
• Working on the FY2015 budget and strategic plan; the next subjects to be covered were:
Health Care, Landfill, and Parks and Recreation.
MESSAGES FROM THE BOROUGH MAYOR
Mayor Friend expressed gratitude to all during his absence.
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January 2, 2014 Page 1306
UNFINISHED BUSINESS
None.
NEW BUSINESS
Contracts
1. Contract No. 1997-13A Kodiak Fisheries Research Center (KFRC) Supplemental Lease
Agreement No. 5 with GSA.
GRIFFIN moved to authorize the manager to execute Contract No. 1997-13(A) with GSA for the
Kodiak Fisheries Research Center Supplemental Lease Agreement No. 5 in the amount not to
0 exceed $525,111.
KIB currently had a lease with the United States Government for space occupied by NOAA at
the Kodiak Fisheries Research Facility (KFRC). The Supplemental Lease Agreement No. 5 was
the process by which the GSA agreed to reimburse KIB for a portion of the KFRC Ventilation
Modifications project. The scope of the project included modifications to the building ventilation
and electrical systems and installation of lighting controls that would enhance and extend the life
of the building systems and increase the energy efficiency of the facility.
GSA had secured funding to complete construction of the project and it was anticipated that KIB
would be reimbursed upon completion of the project. However the bids received for construction
exceeded the available funding. The low bid for construction was $974,000 which included
design, administration, and contingency. The total project budget was currently $1,165,111.
GSA had $640,000 in funding which would be made available through the lease amendment.
KIB would fund the balance of $525,111 for the project out of the KFRC Depreciation (Cash
Account) which currently had approximately $4,000,000. Approval of the Supplemental Lease
Agreement was necessary to authorize GSA to reimburse KIB for $640,000 of project costs.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Griffin, Kaplan, Lynch, Peterson,
Austerman, and Bonney (Ayes); Stephens (No).
2. Contract No. FY2014-21 Construction Administration Services for Kodiak Fisheries
Research Center Ventilation Modifications Project.
LYNCH moved to authorize the manager to execute Contract No. FY2014-21 with PDC, Inc., a
Professional Services Agreement for Construction Administration Services for the KFRC
Ventilation Modification Project in an amount not to exceed $39,928.
PDC, Inc. previously completed the engineering and design for the KFRC Ventilation
Modifications project and the agreement would provide for construction administration services
during construction. Construction administration services included answering contractor
questions, reviewing contractor submittals, shop drawings, and providing periodic and final
inspections to ensure the work complies with the design.
0 ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Kaplan, Lynch, Peterson, Austerman,
Bonney, and Griffin (Ayes); Stephens (No).
3. Contract No. FY2014-22 Kodiak Fisheries Research Center Ventilation Modifications
Project.
lKAPLAN moved to authorize the manager to execute Contract No. FY2014-22 with Wolverine
Supply, Inc. of Wasilla, Alaska for the KFRC Ventilation Modifications Project in an amount not
to exceed $974,000.
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The contract was for the KFRC Ventilation Modifications project as shown in the construction
documents prepared by PDC, Inc. The project was anticipated to be paid for by GSA through a
lease amendment for the NOAA occupied space at the KFRC. An Invitation to Bid for the project ,
was issued on April 19, 2013, and bids were opened on April 30, 2013. Two bids were received,
both of which exceeded the available GSA funding. KIB and GSA had been in discussions to
determine how to provide funding for the project. The total project budgeted was $1,165,111,
including construction, design, and administration. GSA had $640,000 in available funding, and
KIB would provide $525,111 to complete the project.
Wolverine Supply, Inc. was the low bidder for the project with a bid of $974,000, and agreed to
hold the bid price through December 31, 201i Staff reviewed the bid and supporting
documentation, and recommended approval of the construction contract.
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Lynch, Peterson, Austerman,
Bonney, Griffin, and Kaplan (Ayes); Stephens (No).
4. Contract No. FY2009-11C Collective Bargaining Agreement with the International
Brotherhood of Electrical Workers Local 1547.
PETERSON moved to authorize the manager to execute Contract No. FY2009-11C with the
International Brotherhood of Electrical Workers, Local Union 1547 and to adjust the Borough
Salary Schedule to reflect the COLA for all Borough employees (union and non-union) effective
January 1, 2014 and for subsequent years as agreed upon in the contract.
The Borough Management team consisted of Borough Manager Bud Cassidy, Finance Director
Karl Short, HR Officer/Executive Assistant Lauri Whiddon, and Grants Writer/Special Projects
Support Meagan Christiansen. The IBEW team consisted of Debra Blanchard, IBEW Local 1547 ( l
Business Representative, and Shop Stewards Bill Bissett and Jeff Johnson. Negotiations ��JI
occurred because the terms of the existing IBEW contract expired December 31, 2013.
Negotiations commenced during the summer and were completed with a vote of the IBEW
membership approving the contract. The contract negotiated had a term of three years and
would run through December 2016. The only outstanding issue to complete the process was
approval by the Borough Assembly.
In addition to modifying parts of the existing contract (Borough Contract No. FY2009-11) there
were yearly cost of living (COLA) increases that were agreed upon. Each COLA would be
effective January 1, of each year. The COLA amounts negotiated were: 2014 - 1.75%, 2015-
2.0%, and 2016 - 2.0 %. The COLA was not based on the Anchorage CPI as in past years.
The items negotiated and agreed upon were outlined and provided in the packet.
LYNCH moved to postpone Contract No. FY2009-11C until further negotiations with IBEW had
been completed.
ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Peterson,
Stephens, Austerman, Bonney, Griffin, Kaplan, and Lynch.
5. Amendment No. 1 to Contract No. FY2014-02 between the Kodiak Island Borough and the
Kodiak Island Convention and Visitors Bureau for Destination Marketing and Tourism
Development Services for FY2014.
BONNEY moved to authorize the manager to execute Amendment No. 1 to Contract FY2014-
02A with the Kodiak Island Convention and Visitors Bureau for Destination Marketing and J
Tourism Development Services on an international level for an additional amount not to exceed
$18,000.
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January 2, 2014 Page 1308
The Kodiak Island Convention and Visitors Bureau (Discover Kodiak), in a letter dated August
16th 2013, requested $18,000 in addition to its FY2014 contracted amount of $75,000, to be
used to market Kodiak Island on an international level as part of its Destination Marketing and
Ji Tourism Program. Representatives (board members and the Executive Director) of Discover
Kodiak also spoke at an Assembly Work Session on September 26, 2013 to support the
request.
The Kodiak Island Convention and Visitors Bureau had provided destination marketing and
tourism development for the Kodiak Island Borough for several years through its Marketing
Committee. Funded support from the Borough and the City of Kodiak had been used to support
the KICVB. The Borough funds supported the program from the Borough's bed tax revenue.
AUSTERMAN moved to amend Amendment No. 1 to Contract No. FY2014-02 by decreasing
the amount to $8500 to cover the Berlin trip only.
ROLL CALL VOTE ON MOTION TO AMEND FAILED FOUR TO THREE: Bonney, Kaplan,
Lynch, and Peterson (Noes); Stephens, Austerman, and Griffin (Ayes).
ROLL CALL VOTE ON MOTION FAILED SIX TO ONE: Austerman, Bonney, Griffin, Kaplan,
Lynch, and Stephens (Noes); Peterson (Aye).
Resolutions
1. Resolution No. FY2014-21 Accepting the Recommendation of the Planning and Zoning
Commission by Approving the Disposal of a Portion of Block 16, Port Lions Subdivision First
Addition, Comprising Approximately 1.51 Acres of Borough Land, for Less Than Fair Market
Value (P&Z Case 14-009, Native Village of Port Lions).
II KAPLAN moved to adopt Resolution No. FY2014-21.
The applicant in Planning and Zoning Commission Case No. 14-009 had applied for a disposal
of Borough lands, for less than market value, for the purpose of consolidating ownership of the
building and the underlying real estate. The applicant wished to make improvements to the
building facility, but was hesitant to commit financial resources to the project without ownership
of the underlying real estate. There was no adopted plan guidance indicating a need for the
lands reviewed in the case to be retained as a portion of the Port Lions School Reserve. The
Kodiak Island Borough School District had not identified a need for the lands reviewed in the
case to be retained as a portion of the Port Lions School Reserve.
The Commission held a public hearing on the request and found the request was consistent
with the goals and objectives of the 2008 Kodiak Island Borough Comprehensive Plan Update.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Bonney, Griffin, Kaplan, Lynch,
Peterson, Stephens, and Austerman.
2. Resolution No. FY2014-22 Adopting a; 2014 Kodiak Island Borough Communities State
Legislative Capital Improvement Projects Priority List.
LYNCH moved to adopt Resolution No. FY2014-22.
As a regional government, the Kodiak Island Borough represented the communities of the
1 Kodiak Island Archipelago. Those communities included the City of Kodiak, City of Akhiok, City
of Larsen Bay, City of Old Harbor, City of Ouzinkie, City of Port Lions, and the community of
Karluk. In those communities were improvements and infrastructure that included docks,
airports, community utilities, and facilities.
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January 2, 2014 Page 1309
The projects needed to be identified and prioritized by each community and forwarded to the
Kodiak Island Borough for inclusion in a 2014 State Legislative Capital Improvement Projects
Priority List to be sent to the governor and state legislative delegation.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Griffin, Kaplan, Lynch, Peterson, I
Stephens, Austerman, and Bonney.
Ordinances for Introduction
1. Ordinance No. FY2014-01C Amending Ordinance No. FY2014-01 by Amending the Budgets
for the Landfill Lateral Expansion Project Phase III Due To Increased Project Cost
Estimates. 0
LYNCH moved to adopt Ordinance No. FY2014-01C in first reading to advance to public
hearing at the next regular meeting of the Assembly.
The budget amendment would increase the Landfill Lateral Expansion Project by $3,357,452.
Bids for Landfill Lateral Expansion Phase III Project were opened on Wednesday, December
11, 2013. Based on the bid results the total project cost would increase to $32,000,000. The
additional $3,357,452 project costs would be funded with an amendment to the Alaska Clean
Water Fund loan per Resolution No. FY2014-20, adopted by the Assembly on November 7,
2013. •
ROLL CALL VOTE ON MOTION CARRIED SIX TO ONE: Kaplan, Lynch, Peterson, Austerman,
Bonney, and Griffin (Ayes); Stephens (No).
Other Items
1. Confirmation of the Assembly Appointments to the Citizens Board of Equalization, Mission 1
Lake "Tidegate" Service Area Board, and Personnel Advisory Board.
LYNCH moved to confirm the Assembly appointments of Cheryl McNeil for the alternate seat to
the Citizens Board of Equalization, Marian Johnson on the Mission Lake "Tidegate" Service
Area Board, and Lynn Bash and Tom Lacey on Personnel Advisory Board for three year terms
expiring December 2016.
Original advertising reflected a deadline for applications by Friday, November 15, 2013. Having
not received applications for all the open seats, the deadline was extended to Tuesday,
December 24.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Peterson, Stephens,
Austerman, Bonney, Griffin, and Kaplan.
2. Confirmation of Mayoral Appointments to Various Boards.
LYNCH moved to confirm the Mayoral appointments of Gregg Hacker and Scott Arndt on the
Architectural/Engineering Review Board/Building Code Board of Appeals, John Neff on the
Parks and Recreation Committee, Alan Torres to a borough seat and Patricia Olsen to a city
seat on the Planning and Zoning Commission, and Lenny Roberson to the Solid Waste Advisory
Board for three year terms expiring December 2016.
Original advertising reflected a deadline for applications by Friday, November 15, 2013. Having
not received applications for all the open seats, the deadline was extended to Tuesday, � J
December 24.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Peterson, Stephens, Austerman,
Bonney, Griffin, Kaplan, and Lynch.
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January 2, 2014 Page 1310
3. Appointments to the Providence Kodiak Island Service Area Board.
AUSTERMAN moved to voice non-objection to the reappointments of Alvin Arboleda, Carol
j Juergens, MD, and Ron Acarregui to the Providence Kodiak Island Service Area Board.
Per Contract No. 97-07A: An advisory board meeting the requirements of 7AAC 13.030(a)
would 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.
Providence wished to reappoint Alvin Arboleda, Carol Juergens, MD, and Ron Acarregui to fill
Board vacancies as of January 2014.
Per the Contract Provision cited above, the Borough Assembly was given the opportunity to
comment before the appointments to the advisory board were made.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stephens, Austerman, Bonney,
Griffin, Kaplan, Lynch, and Peterson.
CITIZENS' COMMENTS
None.
ASSEMBLY MEMBERS' COMMENTS
Assembly member Stephens spoke to exercising caution regarding the legality of moving
money from the Facilities Fund into replacement and renewal projects.
_1 Assembly member Bonney requested Finance Director Short to speak in depth on the Facilities
J Fund. He also mentioned the Pollock Quota had increased 45% and spoke on the importance of
recognizing the value of trawling to and in the community.
Assembly members Austerman and Kaplan requested a more in depth report from Finance
Director, Short on the Facilities Fund and from Engineering/Facilities Director Tucker on the
landfill.
Assembly members Kaplan and Lynch congratulated Student of the Month award recipients
Wade Bartleson and David Reft.
Assembly member Peterson expressed gratitude to Director Barbara Bolson of the Kodiak
College.
Assembly member Griffin expressed concern on the rising costs of the landfill and requested a
more detailed report.
0 Announcements
\l The next Assembly work session was scheduled on Thursday, January 9, at 7:30 p.m. in the
Borough Conference Room. The next regular meeting was scheduled on Thursday, January 16
at 7:30 p.m. in the Borough Assembly Chambers.
ADJOURNMENT
( + KAPLAN moved to adjourn the meeting.
IlJ ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Bonney, Griffin,
Kaplan, Lynch, Peterson, and Stephens.
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The meeting was adjourned at 9:06 p.m.
KODIAK BLAND BO: s GH .
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ATTE.T: �]/ 11111 `- J: rol Fries, Mayor _' A i'i/v C
Nova v. Javier, MMC, Bor. gh Clerk Approved on: February 6, 2013
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