01_FKODIAK ISLAND BOROUGH
Assembly Regular Meeting
August 2009
regular meeting of the Kodiak Island Borough Assembly was held on ThursdayAugust2009intheAssemblyChambersoftheKodiakIslandBoroughBuilding710MIIIBayRoadThe
meeting was called to order at 730 p.m
The invocation was given by Captain John Quinn of the Salvation Army Mayor Selby led thePledgeofAllegiance
Present were MayorJerome Selby Assembly members Pat Branson Jerrol Friend Judy FuipDaveKaplanChrisLynchandLouiseStutesStaffmemberspresentwereManagerRick
Gifford Community Development Director Bud Cassidy Engineering and Facilities Director
Woody Koning Finance Director Karl Short Deputy Clerk Marylynn McFarland and Assistant
Clerk Jessica Kilbom
BRANSON moved to excuse Assembly member Jeffrey who was out on personal leave
VOICE VOTE ON MOTIONCARRIED UNANIMOUSLY
APPROVALOF AGENDA AND CONSENT AGENDA
BRANSON moved to approve the agenda and consent agenda
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY
APPROVAL OFMINUTES
Regular Meeting Minutes of June 2009 and July 2009 and Special Meeting Minutes ofJune252009andJuly2009wereapprovedundertheconsentagenda
AWARDSAND PRESENTATIONS
CITIZENS COMMENTS
Pam Foreman Parks and Recreation Committee ViceChair spoke in favor of Contract FY2O1O13
COMMITTEE REPORTS
Assembly member Stutes reported on the Providence Kodiak Island Counseling Center
Advisory Council meeting
Assembly member Kaplan reported on the activities of the Parks and Recreation Committee
Assembly member Branson reported That the Providence Alaska Region Board will hold boardandcommunitymeetingonTuesdaySeptember222009
PUBLIC HEARING
Ordinance No FY2O1O-03 Authorizing the Borough to issue General Obligation Bonds in
the Principal Amount of not to Exceed $76310000 to Finance the Planning Design and
Construction of School and Related Capital Improvements in the Borough Including Without
Lirnftatjan the Reconstruction and Renovation of the Kodiak HighSchool and to Submitthe
Question of the Issuance of Such Bonds to the Qualified Voters of the Borough at the
October 2009 Regular Borough Election
Kodiak Island Borough Assembly Minutes
August 2009 Page 712
KAPLAN moved to adopt Ordinance No FY2O1O-03
Mayor Selby noted thatsubstituted version of Ordinance No FY2O1O-03 which included
corrections that were made at the last Assembly work session was provided to the Assembly
The Kodiak Jsland Borough School District KIBSD desired to renovate the Kodiak High School
and construct additional facility space EdUcational requirements had changed since Kodiak
High School was originally constructed in 1966 as regional educationcenter The instructional
space available for Kodiak High School did not support the instructional programs which were
needed to preparehigh schoolstudents for success in theworld marketplace
The state debt service reimbursement planprovided that the State of Alaskawould reimburse
the Borough for not less than 60%of debtservice on the eligible portion of bonds authorized by
the qualified voters of the Boroughbetween October 2006and November 302010 to pay
costs of school construction additions to schools and major rehabilitation projects Total
principal and interest costs would be $120465845 after state reimbursement of approximately60%the total cost to the Borough Wouldbe $48186338 and could require mill rate increase
of 264 mills KIBSDs educationalmission was severely compromised by facility limitations at
the high school
KIBSD Superintendent McDonald provided the Assembly with additionalinformation regarding
the ordinance He spokeon the needs of thestudents and the community to meet theeducation
requirements provided at the high school facility
FRIEND moved to amend Ordinance No FY2OIO-03 by substitution
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY Fulp Kaplan Lynch
Stutes Brarison and Friend
Mayor Selby opened the public hearing
Bob Brodie Carson Schick Arne SchickAngela Eastman Jesse Laird Solveig Christenson
Peggy Tuttle Nick Watkins andRoger Estelle spoke in favorof Ordinance No FY2O1O-03and
commentedon the health safety and education concerns facing KHS students
Isa Stihi Wirz and Charlie Davidson urged the Assembly to support Ordinance No FY2O1O-03
Mary Forbes spoke in support of Ordinance No FY2O1O-03and commended KHS students for
speaking to the Assembly in support of the ordinance
Mayor Selby closedthe public hearing
Assembly members Branson Kaplan and Stutes commended the communitys involvement in
support of Ordinance FY2O1D-03
ROLL CALL VOTE ON MAIN MOTIONAS AMENDED CARRIEDUNANIMOUSLY Friend
Fuip Kaplan Lynch Stutes and Branson
Kodiak Island Borough Assembly Minutes
August 2009 Page 713
Ordinance No FY2O1O-04 Authorizing the Borough to tssue General Obligation Bonds inthePrincipalAmountofNottoExceed$12500000 to Finance the Planning Design1 and
Construction of Renewals and Replacements of Borough Facilities and to Submit theQuestionoftheIssuanceofSuchBondstotheQualifiedVotersoftheBoroughattheOctober2009RegularBoroughEIection
KAPLAN moved to adopt Ordinance No FY2O1O-04
The Borough currently owned over $200000000 worth of buildings as reflected on the valueslistedontheinsuranceschedulesThenumberdidnotincludethecostofthelandorsiteimprovementsPartofthecostofownershipwastorenewandlorreplacepartsofthese
buildings The prceeds of the bond $12500000 equaled 6.25%of the current value of the
buildings It was in thebest interest of the Borough to keep the buildings properly maintainedanddeferredmaintenancewouldcostmoreinthelongrunApproximately73%of the buildingswereschoolbuildingswhichqualifiedfor70%debtreimbursement from theState of AlaskaTotalprincipalandinterestcostswouldbe$19841337 after state reimbursement of
approximately 51%the total cost to the Borough would be $10138923 and could require mill
rate increase of .53 mills
Engineering and Facilities Director Koning provided additional information regarding OrdinanceNoFY2OIO-04
Mayor Selby opened the public hearing
Bob Brodie spoke in support of Ordinance No FY2O1 0-04
SolveigChristenson requested clarification be provided to voters about the specificsof eachbondordinancesothatitwasunderstoodthattheordinancesweretwodistinctissues
Mayor Selby closed the public hearing
Mayor Selby noted that there were no overlaps of either the two ordinances or thefunds thatwouldbepassedbyvotersanddirectedstafftoprovideinformationtothepublicshowingprobableratethatthebondswouldbesoldat
Assembly members spoke in favor of clarification of the two ordinances so the public would
clearly understandthe two ordinances were separate issues
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Kaplan Lynch Stutes BransonFriendaridFuip
BOROUGH MANAGERS REPORT
Manager Gifford reported the following
Reported on the results of the Junk Vehicle Disposal program
Provided an update on the construction projects
Recommended cancelling the work session of August 13and the regular meeting of
August 20 due to lack of items for the agenda Consensus of the Assembly was given
Assembly member Friend asked that information be provided to property owners of theWoodlandAcresSubdivisionregardingdevelopmentissuesduetothepavingofthesubdivisionsroads
Kodiak Island Borough Assembly Minutes
August 2009
Page 714
MESSAGES FROM THE BOROUGHMAYOR
Mayor Selby reported on his attendance at theNational Association of Counties NAC0 Annual
Conference Proposed resolutions and platform changes presented at the conference were
made availableto the Clerks office Mayor Selbyprovided explanation an the proposed
changes to the Clean Waters Act which would affectfuture developmentnear creeks and
streams in the Kodiak area He also reported that there would be local legislative delegation
that would be traveling to Washington D.C to meet with the Borough lobbyists and Alaska
congressionaldelegation
UNFINISHED BUSINESS
None
NEW BUSINESS
Contracts
Amending theMotion Previously Adopted at the July 16 2009 RegularMeeting on ContractNoFY2Q1O-01 Kodiak Island Borough Facilities Fuel Oil Delivery
BRANSON moved to amend the motion adopted at the July 16 2009 regular meeting
authorizing the manager to execute Contract No FY2OIO-01 with Petro Star inc of Kodiak
Alaska for three year contract based on margin FROM $J above the weekly average of
the posted Seattle OPJS price TO above the weekly average of the posted Seattle OPIS
price
Contract No FY2O1O-01 was approved by the Assembly on July 16 2009 under the consent
agenda What was reflected on the agenda statement summary was correct however the
motion that was indicated in the original agenda statement was incorrect andneeded to be
corrected for the record
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Lynch Stutes Branson Friend
FuIp and Kaplan
13 Contract No FY2O1O-13 Kodiak Road System Trails MasterPlan
KAPLAN moved to authorize the manager to execute Contract No FY2OIO-13 withAIta
Planning and Design of Portland Oregon for the Kodiak Road System Trails Plan in the amount
not to exceed $128013
Assembly member Lynch declared conflict of interest regarding thecontract becauseshe was
part of the design team Mayor Selby ruled in favorof the declaration andasked AssemblymemberLynchtostepdownfromthedais
Parks and Recreation Committee members worked through the process of selecting
contractor to perform the Road System Trails MasterPlan Nine planning firms responded to the
Boroughs Request for Proposals RFP Three firms were short listed and travelled to Kodiak
to participate in an interview process where they were rated and ranked After the interview
process the Committee chose ALTA Planning and Design to perform the work ALTA had
strong background of trails planning and included on its team was Mr Mall Hastie who had
developed successful public participation program and project website for theKlB
Comprehensive Plan that was completed duringpast years
Funds for the planning project would include primary funding through the Community
Development Departmentbudget and State of Alaska ClAP grant of $23500 which included
another $80000 to improve or harden various trails with what wasknown as geo-block It
Kodiak Island Borough Assembly Minutes
August 2009 Page 715
was noted that much of the preliminary workhadbeen performed by the Borough which wouldreducetheultimatepriceofthecontract
ROLL CALL VOTE ON MOTION CARRIED UNANiMOUSLy Stutes Branson Friend FuIpendKaplan
Contract No FY2OI 0-14 KodiakSchools Mechanical Electrical and Plumbing EquipmentSeismicUpgrades
BRANSON moved to authorize the manager to execute Contract No FY2O1O-14 with ParkhurstMechanicalLICfortheKodiakAreaSchoolsMechanicalElectricalandPlumbingSeismicUpgradesinanamountnottoexceed$127340
The contract was for the KodiakArea Schools Mechanica Electrical and Plumbing SeismicUpgradesasshownonconstructiondocumentspreparedbyJensenYorbaLollIncTheprojectwastobefundedinpartbyFEMAHMGPGrantintheamountof$132249 and other fundsweretobedeterminedBidswerereceivedinresponsetoKIBsInvitationtoBiddatedJune262009ParkhurstMechanicalLLCwasthelowbidderfortheproject
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Branson Friend FuIpKaplanLynchandStutes
Resolutions
None
Ordinances for Introduction
Ordinance No FY2O1O-tJ5 Amending Kodiak Island Borough Code Title Revenue andFinanceChapter3.05 Fiscal Policy Section 3.05.030 Debt Policies
KAPLAN moved to adopt Ordinance No FY2O1 0-05 in first reading to advance to public hearingatthenextregularAssemblymeeting
The ordinance would update the debt policies of the Borough The Borough had veryconservativedebtpolicyandinmanywaysitmadesensetonothaveitsorestrictiveThereasonsforthiswere
The State of Alaska generally reimbursed the Borough for 60 to 70%of its debt
Under the Governmental Accounting StandardsBoard GASB theState reimbursementwasnotconsideredinthenetbondeddebtcalculationbutwasveryrealcommodityGeneralFundexpendituresmadeup-a very small percentage of total Borough revenuesThefinancialstabilityoftheBoroughwasfurtherenhancedbytheFacilitiesFundwhich
did not exist when the policies were originally adopted
The ordinance would change thenetdebt as percentage of the estimatedmarket value of
taxable property from live percent to fifteen percent The International City/County ManagementAssociationICMAinitspublicationEva/uating Financial Condition recommended that
governments net debtshould not exceed10 percent and what was left out of theformula was
the large amount of State reimbursement for the Boroughs debt
The ordinance would remove the paragraph stating The ratio of debtservice expenditures as
percent of governmental fund expendituresshouldnot exceed20 percear Generally the ratiowasfordebtserviceexpenditurescomparedtogovernmentalrevenuesThegeneralfundinthe
Borough was very small part of its total operations
Kodiak Island Borough Assembly Minutes
August 2009 Page 716
ROLL CALL VOTE ON MOTION CARRIED FIVE TO ONE Friend Fuip Kaplan Lynch and
Branson Ayes Stutes No
Other ttems
Declaring Seat on the Solid Waste Advisory Board Vacant This item was approved under
the consent agenda
Mr Rick Pillans verbally advisedthe Clerks Office on July 14 2009 of his resignation from the
Solid Waste Advisory Board The Assembly accepted with regret the resignation of Mr Pillans
for term to expire December 31 2009 fromthe Solid Waste Advisory Board and directed the
Borough Clerk to advertise the vacancy per Borough Code
Assembly Approval of Vacation in Accordance With KIBC 16.40 and KIBC 16.60 to Allow
10-Foot Wide Utility Easement Over Lot 1A US Survey 3466 Originally Created by Plat
80-22 and the Vacation of Portion of Driveway and Utility Easement Located Over
Portionof the Same Lot Case S09-021
BRANSON moved to approve the vacation of 10-foot wide utility easement over Lot IA U.S
Survey 3466 orIginally created by Plat 80-22 and the vacation of portion of driveway and
utility easement located over portionofthe same lot
The petitioner requested the vacation of 10-foot utility easement located on portion of land
that was acquired fromthe Borough in 2008 The easement was located in an area where the
petitioner was planning to build residential addition In addition portion of the driveway and
utility easement was to be vacated which was no longer necessary to serve the petitioners lot
since they had acquired the portion of landfromthe Borough on which the portion of easement
was located
The Planning and Zoning Commission at its July 15 2009 regular meeting agreed with the
request to vacate the easementsand recommended approval to the Assembly based on the
condition of approval that thevacation would be reviewed and approved by the Assembly prior
to the granting of final plat approval
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY Fuip Kaplan Lynch Stutes
Brarison and Friend
Declaring Seat on theService Area No Board Vacant This item was approved under
the consent agenda
Ms Sharon Lea Adinolfi submitted letter of resignation from theService Area No Board on
July 242009 for term to expire October 2011The Assembly accepted with regret the
resignation of Ms Adinolfi for term to expire October 2011 from theService Area No Board
and directed the Borough Clerk to advertise the vacancy per Borough Code
CITIZENS COMMENTS
Pam Foreman thanked the Assembly for approving Contract No FY2O1 0-13
ASSEMBLY MEMBER COMMENTS
Assembly member Lynch had no comment
Assembly member Stutes thanked The public for testifying on issues that were presented to the
Assembly and commended thestudents who spoke in support of Ordinance No FY2O1 0-03
Kodiak Island Borough Assembly Minutes
August 2009 Page 717
Assembly member Friend spokeon the new street lighting onRezanof Drive and thanked allwhoparticipatJintheprojectandthankedthestudentsandpublicfortestifyingonOrdinanceNoFY2010-03
Assembly member Kaplanwished everyone great weekend
Assembly member Fuip spoke on local reunions that were being held thanked CDD DirectorCassidyforactingastheAdministrativeOfficialintheabsenceoftheManagerthankedManagerGiffordforsubmiftingthelettertotheStateurgingre-painting of the Near IslandbridgeandthankedAssessorTomAndersonforhishardworkastheBoroughAssessorandwishedhimwellinKenai
Assembly member Branson was impressed with the progress of the construction projectsexpressedinterestinthepossibilityoftheLegislatureoverridingtheGovernorsvetoonthe$28milliondollarstimulusmoneyandalertedcommunifymembersaged65andolderthatthereweresupportsystemsinplacetohelpcoverthe$70/month tax exemption rate increasemandatedbythestate
Announcemen
Mayor Selby announced that the Assemblywould hold special meeting on Tuesday August182009at730p.m in the Borough Assembly Chambers
The Assembly would meet in work session on Thursday August 27 2009 at 730 p.m in theBoroughConferenceRoomThenextregularmeetingwasscheduledonThursdaySeptember2009at730p.m in the Borough Assembly Chambers
Mayor Selby urged the public to attend luncheon and to participate in dscusslo with theUniversityofAlaskaFairbanksChancelloronThursdayAugust202008at12p.m at theKodiakInn
ADJOURNMENT
BRANSON moved to adjournthe meeting
ROU CALL VOTE ON MOTION CARRIED UNANIMOUSLY Kaplan Lynch Stutes BransonFriendandFuip
The meetingadjourned at 905 p.m
KODIAK ISLAND BOROUGH
A1TEST
Nbva Javier1 Approved October 15 2009
Kodiak Island Borough Assembly MinutesAugust2009
Page 718