01_CKODIAK ISLAND BOROUGH
Assembly RegularMeeting
July 16 2009
regular meeting of the Kodiak Island Borough Assembly was held Thursday July 16 2009 in
the Assembly Chambers of the Kodiak Island Borough BuIlding 710 MIII Bay Road The
meeting was calledto order at 730 p.m
The invocation was given by Sergeant Major Dave Blacketer of theSalvation Army Deputy
Presiding Officer Branson led the Pledge of Allegiance
Present were Deputy Presiding Officer Pat Branson Assembly members Jerrol Friend Judy
Fulp Dave Kaplan Chris Lynch arid LouLse Stutes Staff members present were Manager Rick
Gifford Clerk Nova Javier arid Deputy Clerk Marylynn McFarland
KAPLAN moved to excuse Mayor Selby who was attending the NACO Conference and
Assembly member Jeffrey who was out on personal leave
VOICE VOTE ON MOTION CARRiED UNANIMOUSLY
APPROVAL OF AGENDA ANDCONSENT AGENDA
STUTES moved to approve the agenda and consent agenda
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY
APPROVAL OF MINUTES
None.
AWARDS AND PRESENTATIONS
Manager Gifford presented the Employee of the Quarter Award to Teresa Medina Cashier in
the Finance Department
CITIZENS COMMENTS
Roxanne SalcidoEnvironmental Coordinator for theNative Village of Afognak spoke on the
importance of the recycling program provided by Threshold Services Inc
Emil Norton and Gretchen Saupe spoke in support of the Senior Citizens of Kodiak non-profit
agencies and thanked the Assembly for financial support
Marian Johnsonand Bonnie Dillard spoke in support of recycling in Kodiak
Nick Troxell owner of NicksAuto Wrecking Salvage and Metal Recycling spoke about specific
language in the Recycling Process Request for Proposal RFP
Maroje Jaskovich spoke in support of the Threshold contract andban on fireworks
Majqie Rocheieau spoke in support of the bond ordinances and theThreshold contract
Lisa Polito Mary Forbes Eric EnvaIt Rachel Nummej Jennrfer RichcreelcRhorida MakerLindaHimmelbloomSylviaPanzarellaStephanieLoveandJenniferPolleyspokeinsupportof
theThreshold contract
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 703
KarenYashin spoke in support of recycling non-profits and the Humane Society of Kodiak
Iver Malutin spoke in support of education the bond ordinances and recycling
Melissa Borton Bill .WafkinSteve Doerksen Nick Watkins Jessica Rauwolf4 Clair Brodie Joe
Floyd and Joe Mendoza spoke in support of the bond ordinances
Mike Mulligan spoke in support of recycling and non-proffi organizations
Geneneiva Pearson spoke in support of the bond ordinances recycling and stop light at Birch
and MIII Bay Road
Mel Stephens spoke against the bond ordinances and the indebtedness that they would incur
and questioned thecost estimations and the current school district coffers
Bob Brodie andMaqgie lngve spoke in support of recycling and the bond ordinances
Scott Williams spoke in support of the bond ordinances and addressed the issue of theschool
distjicts cost estimation in that every step possible hadbeen taken to bring the reconstruction
and remodel of the high school to this stage of development
Cheryl McNeil spoke against the Threshold contract questioning thecost ratios
HeatherPeterson voicedher support of recycling and did not support the bond ordinances
Petal Ruch spoke in support of the bond ordinances addressing the multi-functional uses of the
high school building which included an emergency evacuation site
Ellen Simeonoff spoke in defense of the Recycling Services RFP that was submitted by
Threshold Services Inc and spoke in support of the bond ordinances
COMMI1TE REPORTS
Assembly member Kaplan reported that the Parks and Recreation Committee was in
negotiations for theMaster Trails Plan and it should be beforethe assembly for approval in the
very near future
PUBLIC HEARING
Ordinance No FY2009-01 Amending Ordinance No FY2009-01 Fiscal Year 2009 Budget
by Amending Budgets to Account for Various Revenues that are Over Budget Provide for
Additional Expenditures Budget New Projects and Move FundsBetween Projects
FRIEND moved to adopt Ordinance No FY2009-01
Ordinance No FY2009-01 was for the fiscal year end budgetadjustments In theGeneral
Fund theMiscellaneous line item in the revenue section of the General Fund was increased by
$67000.Tho use of fund balance in the General Fund was decreased by $69000 The School
District SupportDepartment was decreased by $84000 Transfersout was increased by
$272000$62000was for increasedcosts in the School Buildings Department in the Building
andGroundsFundand $210000was for hospital parking In the Building andGroundsFund
School Buildings Department expenditures were expected to exceed the budget by $70000
new department entitled School Building Major Maintenance was created and budgeted at
$12000 The Wornens Bay Road Service District expenditures exceeded its budget by $6006
The Bay View Road Service District expenditures exceeded its budgetby $4670
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 704
The Borough needed to amend the debtservice budget to account for the refunding of the 1998bondissueTheBoroughclosedcertaincompletedprojectsattheendofFY2009andthis
ordinance moved the unexpended funds to other projects The Borough canceiled certain
projects and this ordinance moved the unexpended funds to other projects
The Borough received $2500000 grant to repair and pave theroads in Service District AreaNo$130000 grant for school supplies and equipment $125000 grant from the DenaliCommissionforanislandwidetransportationstudyandexpectedtoreceive$100000 grantfromtheStateofAlaskaDepartmentofTransportationforanislandwidetransportationstudyTheBoroughwasreimbursed$3238143 by the State for the Boroughs Seismic projects the
proceeds of whichwould beused for other Borough projects
Clerks Note Between the introduction and the public hearing there were changes proposed bystaffandItwasnecessarytoamendtheordinancebysubstitution
KAPLAN moved to amend Ordinance No FY2009-01 by substitution
ROLL CALL VOTE ON MOTION TOAMEND CARRIED UNANIMOUSLY Branson Friend
FuIpKaplan Lynch and Stutes
Deputy Presiding Officer Branson opened the public hearing Seeing and hearing none DeputyPresidingOfficerBransondosedthepublichearing
ROLL CALL VOTE ON MOTIONAS AMENDED CARRIED UNANIMOUSLY Friend FuipKaplanLynchStutesandBranson
Ordinance No FY2OIO-02 Amending the Kodiak Island Borough Code of Ordinances Title
Administration and Personnel Chapter 2.40 Records Management Chapter 2.50 BoroughClerkSection2.50.020 Duties and Chapter 2.55 Engineering and Facilities DepartmentSection2.55.010 Engineering and Facilities Department Dfrectcr
STUTES moved to adopt Ordinance No FY2O1O-02
The existing Records Management code was put in place in 1975 with minor changes in 1979and1998StaffdeterminedtheneedtobringitintocompliancewithrecentandexistinglawsandregulationsTheoldKIBC2.25.200 was repealed in its entirety and new Chapter 2.40wasestablishedThenewchapterincludedpoliciesthatreflectedindustrybestpracticesStaffs
research and proposalconsideredAlaska Statutes codes from other municipalities andconsultationwithBoroughstaffandBoroughAttorney
Deputy Presiding Officer Branson opened the public hearing Seeing and hearing none Deputy
Presiding Officer Branson closedthe public hearing
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Fuip Kaplan Lynch StutesBransonandFriend
BOROUGH MANAGERS REPORT
Manager Gifford reported on the following
New pool expected to be completed in August
Bids for Woodland Acres paving project were due July 21 and would be awarded by July302009
Borough project updates were available on the Kodiak Island Borough website
Kodiak Island Borough Assembly Minutes
July 16 2009
Page 705
He would be out of the office July 24 through August for personal leave and to attend
the Alaska Municipal Leagueconference
MESSAGESFROM THE BOROUGHMAYOR
None
UNFINISHED BUSINESS
None
Deputy Presiding Officer Bransonrecessed the meeting at 850 p.m andreconvened the
meeting at 855 p.m
NEW BUSINESS
Contracts
Contract No FY201009 Providence Kodiak Island Counseling Center Services to KIB
School District for School Year 2009-2010
FRIEND moved to authorize the Manager to execute Contract No FY2OIO-09 with Providence
Kodiak Island Counseling Center of Kodiak Alaska to provide mentalhealth services for the
2009-2010 school year in anamount not to exceed $381350
The Agreement was between the Kodiak Island Borough and ProvidenceKodiak Island
Counseling Center wContractor setting forth theterms and conditions pursuant to the
contractor providing mentalhealthservices for the Kodiak Island Borough schools The
contractor worked with the School District to Identify anddocument mutual understanding of
the programs scope arid requirements with focus on ensuring the greatest amount of quality
service within the budgeted amount of $381350 which was the same amount as last year
ROLL CALL VOTE ON MOTIONCARRIED UNANIMOUSLY Kaplan Lynch Stutes Branson
Friend and Fuip
Contract No FY2OIO-0t Kodiak Island Borough Facilities Fuel Oil Delivery This item was
approved under the consent agenda
The contract would supply and deliver and heating oil to KIB facilities which includedthe
Landfill/Baler Building KIBAdmin Building Chiniak Tsunami Shelter KFRC Laboratory Facffity
and dorms Fire Stations other KIB rental facilities such as the cottage buildings 720Egan
and the Annex Building The benefit of the bid process was to combine the quantity of heating
fuel needed for all KIB facilities with the quantities of fuel needed by the School District and the
Hospital for bulk purchase
The bid packet for heating fuel went out for year option term or year option term
Results came back with one bidder The bid offered margin of 17 cents for one year contract
and16 cents for three year contract Because the margin for the three-year contract was
lower thanthe one year contract it wasrecommended that KIB enter into contract with Petro
Star for three year contract based on margin of 16 cents above the weeklyaverage of the
posted Seattle OPIS price Thesewere the same terms that theschool district selected when
they approved the heating fuel contract with Petro Star Inc at the last meeting
VENDOR Town Town CH1NIAK
Petro Star Inc year $0.17 $0.17 $0.17
Petro Star Inc year $0.16 $0.16 $0.16
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 706
Contract No FY2O1010 Recycling Contract with ThresholdServjces Inc
KAPLAN moved to authorize the Manager to execute Contract No FY2O1O-10 with Threshold
Services Inc of Kodiak Alaska for time and material contractestimated to be $281450 for
the period of July 2009 through June 30 2010
The Kodiak Island Boroughs landfill enterprise fund was financed through user fees residential
and commercial garbage fees as well as fees charged at the landfill for varying wastes These
funds covered costs for the solid waste collection contract landfill operational disposal costs
and community recycling efforts
Request for Proposal RFP was advertised end the only responder was Threshold Services
Inc The cost proposedby Threshold Inc of $380 per ton exceeded the $150 per tondesired in
the RFP however during negotiation the price.was reduced to $325 per ton The contract was
based on the amount of recyclables shipped off island similar to time and material contractanditwasestimatedthatthecontractwouldtotal$281450 The landfill budget was budgeted at
$130000 for recycling services In order for the landfill budget to cover the balance of this
expense it was estimated that rates would need to be increased.The negotiatedcontract was
for one year July 2009 through June 30 2010 with two one-year options to extend
Assembly member Fulp spoke in support of theThreshold contract and was hopeful that the
garbage rates would not be increased She also wanted to see financial plan fromThreshold
Services Inc where their revenueswould meet their expenses
Assembly member Stutes agreed that recycling was an important servIce iii the community
however she was concerned with the RFP process followed on the contract She spoke tothe
fact thatother bidders-should havebeen able to have the same information as Threshold
Services Inc
STUTES moved to postponeawarding the contract until September 2009 regular meeting in
order that everyone would have the same opportunity to bid
ROLL CALL VOTE ON THE MOTION TO POSTPONE FAILED THREETO THREE Lynch
Branson and Kaplan Noes Friend FuIp and Stutes Ayes
In response to Assembly member Friends question about thecost of services if the contract
was awarded for one month Manager Gliford reported that hehad signing authority up to
$25000 and depending upon volume he would see how long that amount would last
Assembly member Lynch disclosed her position as President of the Board of Threshold
Services lnc She outlined how Threshold responded to the RFP She explained in detail how
the Borough followedthe code for the REP
Assembly member Kaplan spoke in support of the Thresholdcontract and summarized
comments from letter received from Linda Kowan in Port Lions stating that their tribal council
was dependent on the recycling of Threshold Services Inc and their environmental efforts
would suffer greatly without their services
Assembly member Branson explained the difference between an RFP and Request for Bid
She explained that the Thresholdcontract was for year and advised other recyclingbusinessesinterestedtostaytuneforfuturedevelopmentsInresponsetoAssemblymember
Bransons question of what would happen if thecontract was not renewed Manager Gifford
reported that Borough funding would not be available andhe did not know how long it would
take for someone else to take on recycling program
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 707
ROLL CALL VOTE ON MAiN MOTION CARRIED UNANIMOUSLY Stutes Branson Friend
Fuip Kaplan and Lynch Assembly member Stutes changed hervote to the prevailing side
Resolutions
Resolution No FY2O1O-03 Approving Fiscal Year 2010 Kodiak Island Borough Non-Profit
Funding
LYNCH moved to adapt Resolution No FY2O10-0
Resolution No FY2OIO-03 was the framework in which the Assembly distributed the Borough
funds set aside in the Fiscal Year 2010 budget to various non-profit agencies
Assembly member Friend spoke in support of non-profits
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Stutes Branson Friend Fuip
Kaplan and Lynch
Resolution No FY2O1O05 Appointing Members to the Kodiak Fisheries Development
AssociationThis item was approved under the consent agenda
The Kodiak island Borough and City of Kodiak jointly designated the Kodiak Fisheries
Development Association KFDA as the eligible crab community entity ECCE The by-laws of
the KFDA provided for appointment ofDirectorsto the Board by the Kodiak Island Borough
Assembly and the Kodiak City Council The by-laws statethat appointments take place
annually at July meetings of the Assembly and City Council and that Directors have staggered
three year terms of aflice
The following individuals are appointed as Directorsof the Kodiak Fisheries Development
Association with the noted terms
City Appointees
CrabProcessor Rep Mike Woodruff 7/10 appointment
Crab Harvester Rep Jeff Stephan 7/11 reappointment
Joint Appointees
Stosh Anderson 7/10 joint appointment
Donna Jones 7/08 joint appointment
Lame Welch 7108 joint appointment
Borough Appointees
CrabProcessor Rep Tuck Bonney 7/12 reappointment
Crab Harvester Rep Jerry Bongen 7/12 reappointment
Resolution No FY2O1O-02A Amending Resolution No FY2OIO-02 Amending the Fees of
the Kodiak Island Borough
KAPLAN moved to adopt Resolution No FY2O1O-02A
The Assembly requestedproposal for metals recycling in Kodiak and until contract was
awarded the Assembly wished to amend page 11 of the FY2O1O fee schedule as follows
8a Metals $275.00/ton
8b Vehicles up to 7000 pounds $475.00 per vehicle
The intent of the resolution was to put Request for Proposal out to evaluatecosts of recycling
metals
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 708
Assembly members FuIp Stutes and Branson spoke in support of the resolution
Assembly member Lynchspoke against the resolution
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Brenson Friend FuIp KaplanandStutesAyesLynchNo
Ordinances for Introduction
Ordinance No FY2OIQ-03 Authorizing the Borough to Issue General Obilgation Bonds in
the Principal Amount of not to Exceed $76310000 to FInance the PlanningDesign and
Construction of School and Related Capital Improvements in the Borough Including Without
Limitation the Reconstruction and Renovation of the Kodiak High School and to Submit the
Question of the Issuance of Such Bonds to the Qualified Voters of the Borough at the
October 2009 Regular Borough Election
KAPLAN moved to adopt Ordinance No FY2OIO-03 in first reading to advance to public hearing
at the next regular Assemblymeeting
The Kodiak Island Borough School District desired to renovatethe Kodiak Island High School
and construct additional facility space Educational requirements had changed since Kodiak
High School was originally constructed in 1966 as regional education center The instructional
space available for Kodiak High School did not support.the instructional programs which were
needed to preparehigh school students for success
The currentstate debt service reimbursement plan provided that theState of Alaska would
reimbursethe Borough for not less than 60%of debt service on the eligible portionof bonds
authorized by the qualified voters of the Borough between October 2006and November 30
2010 to pay costs of school construction additionsto schools and major rehabilitation projects
Stewart McDonald Supenntendent of the Kodiak Island Borough School District gave
presentation in support of the bond ordinances
Assembly members Stutes Lynch Friend Kaplan and Branson spoke in support of the bond
ordinances in orderthat questions would go beforethe voters They stressed the importance of
educating the voters on the costs
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Friend Fulp Kaplan Lynch
Stutes and Bransori
Ordinance No FY20 10-04 Authorizing the Borough to IssueGeneral Obligation Bonds in
the Principal Amount of not to Exceed $12500000 to Finance the PlanningDesign and
Construction of Renewalsand Replacements of Borough Facilities and to Submit the
Question of the Issuance of Such Bonds to the Qualified Voters of the Borough at the
October 2009 Regular Borough Electkrn
FRIEND moved to adopt Ordinance No FY2O1O-04 in first reading to advance to public hearing
at thenext regular Assemblymeeting
The Borough currently owned over $200000000 worth of buildings as reflected on thevalues
listed on theinsurance schedules The number did not includethecost of theland or site
improvements and part of thecost of ownership was to renew and/or replace parts of the
buildings The proceeds of the bond $125000QQ equaled 6.25%of the current value of the
buildings and would be in thebest interest of the Borough to keep buildings properly
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 709
maintained Approximately 73%of the buildings were school buildings which qualified for 70%
debt reimbursement fromtheState of Alaska
Assembly member Stutes spoke in support of moving the bond ordinances forward and
expressed concern about securing bond for maintenance items
Assembly member Branson noted that renovation In the villages were included in the bond
ordinances and encouraged the public to become familiar with them
ROLL CALL VOTE ON MOTION CARRIEDUNANIMOUSLY Fuip Kaplan Lynch Stutes
Branson and Friend
Other Items
None
CITIZENS COMMENTS
Me Stephens spoke against the bondordinances commenting specifically about the $4.2 million
bond proposition that was passed in 2004 to fundvocationaleducation refurbishing Mr
Stephensspoke against the approval of theThreshold contract warning the Assembly of being
in violation of the Boroughs procurementprocess
ASSEMBLY MEMBERCOMMENTS
Assembly member Stutes Kaplan Lynch and Branson congratulated Teresa Medina for her
receipt of the Employee of theQuarter Award
Assembly member Friend had no comments
Assembly member Fulp was pleased to see the arrival of the cruise ships in Kodiak
Announcements
Deputy Presiding Officer Branson announced that the Assembly would meet in special
meeting andwork session on Thursday July 2009 at 730 p.m in the Borough Conference
Room The next regular meeting was scheduled on ThursdayAugust July 16 2009 at 730
p.m in the Borough Assembly Chambers
ADJOURNMENT
FRIEND moved to adjourn the meeting
ROLL CALL VOTE ON MOTIONCARRIED UNANIMOUSLY Kaplan Lynch Stutes Branson
Friend and FuIp
The meeting adjourned at 950 p.m
KODIAK ISLAND BOROUGH
ATTEST JeromeM Selby Mayor
Approved September 2009
Kodiak Island Borough Assembly Minutes
July 16 2009 Page 710