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2015-01-15 Work Session Kodiak Island Borough Assembly Work Session Thursday, January 15, 2015, 7:30 p.m., Borough Assembly Chambers Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff.Although additional items not listed on the work session agenda are discussed when introduced by the Mayor,Assembly,or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record.Citizen's comments intended for the"official record"should be made at a regular Assembly meeting. Page 1. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 3 - 16 a. Karluk Lake Nutrient Enrichment Preliminary Environmental Assessment and Section 810 Evaluation- Tina Fairbanks, KRAA Executive Director KRAA Presentation to the Assembly.pdf 17 - 28 b. Future Land Sale Update - Bob Scholze, Resource Management Officer Resource Management Presentation.pdf Recon Salonie Creek Materials Investigation.pdf 29 - 38 c. Assessor's Discussion on Optional Exemptions and Current tgli Exemptions AS 29.45.050 Optional Exemptions and Exclusions.pdf Required Property Tax Exemptions received at the meetinq.pdf 39 -40 d. Washington DC Lobbying Dates and Attendees and Other Upcoming Assembly Travel DC Possible Lobbying Dates.pdf 2015 DC Travel Info.pdf 3. PACKET REVIEW PUBLIC HEARING Ordinance No. FY2015-09 Rezoning Lot 1, Alagnak Acres Subdivision from R2-Two-Family Residential Zoning District to B-Business Zoning District (P&Z Case No. 15-007). NEW BUSINESS RESOLUTIONS Resolution No. FY2015-16 Adopting the Priorities of the Kodiak Area Coordinated Transportation Plan. Page 1 of 40 OTHER ITEMS *Confirmation of the Mayoral Appointment to the Solid Waste Advisory Board (Jennifer Culbertson). *Confirmation of the Mayoral Appointment to the Architectural/Engineering Review Board (Kelsea Kearns). 4. MANAGER'S COMMENTS 5. CLERK'S COMMENTS 6. MAYOR'S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Page 2 of 40 AGENDA ITEM #2.a. ,mss KOIJIAK KODIAK REGIONAL AQUACULTURE ASSOCIATION i.AQUACm:mxt � 104 Center Avenue,Suite 2,05 amu. Kodiak,AK 99615 Phone:907-486-6555 / Fax:907-486-4105 www.kraa.org January 12,201.5 Bud Cassidy Borough Manager 710 Mill Bay Road Room 125 Kodiak,AK 99615 Dear Mr.Cassidy, The Kodiak Regional Aquaculture Association(KRAA)has requested to provide the Assembly with an update at the upcoming work session on the Environmental Assessment for the proposed Karluk Lake Nutrient Enrichment project. The USFWS released the Public Draft EA,"Karluk Lake Nutrient Enrichment,Preliminary Draft Environmental Assessment and Section 810 Evaluation"on December 4, 2014. This also began the 60-day public Comment Period,which closes February I.2015. As you know,the effort to forward this project has been on-going since late 2008 following the run failure of early run sockeye salmon at Karluk Lake on the Westside of Kodiak. It took almost two years, amidst subsequent poor returns to Karluk in 2009 and 2010,to gather data and gain an assessment of Karluk returns and potential rehabilitation. KRAA engaged the resources of ADF&G and contracted with outside experts to provide an assessment of the lake environment. Then,in the fall of 2011,the USFWS agreed to engage the National Environmental Policy Act process to provide an Environmental Assessment for Nutrient Enrichment.Also in the fall of 2011,the KIB passed resolution FY 2011-22 in support of nutrient enrichment. KRAA submitted a proposal to the US Fish&Wildlife,Kodiak National Wild life Refuge(USFWS)in February of 2012. During the rest of 2012,KRAA lobbied the USFWS to move forward with the EA process,and finally gained their agreement to an abbreviated schedule. Here the KIB leant their support with a letter to Dan Ashe,Director of the USFWS.The Final EA,decision documents and Compatibility Determination were slated to be complete by June of 2013. Following numerous delays and staffing changes at the local,KNWR,and regional,USFWS,level,the draft EA has finally been released—nearly 20 months behind schedule. However,the release of this draft does not signify the end of the process. Public support is more important at this stage than ever. KRAA would request of the Assembly their continued support through public comment on this EA designating that the desired outcome is a Finding of No Significant Impact(PONS I)for the proposed action of nutrient enrichment of Karluk Lake. Furthermore,KRAA would encourage the Assembly and public to support finding that nutrient enrichment constitutes a compatible use and is consistent with refuge purposes as evidenced in the KNWR Comprehensive Conservation Plan and detailed in the attached memo from.KRAA Production&Operations Manager,Trenten Dodson. Each piece(FDNB], Page 3 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Decision Documents,and Compatibility Determination)of the ongoing EA process is important to the final outcome of the NEPA process as a whole. In addition to the content suggested above,KRAA would like to encourage public comment on the content of the Draft EA. Further detailed in the attached memorandum is information citing the problematic way in which the EA characterizes the proposal put forward by KRAA as an enhancement project rather than a rehabilitation project. The text of the EA document indicates that KRAA has stated intent to increase productivity and returns beyond historic levels. In fact,the stated purpose of the project as detailed in the February,2012 proposal is: "The purpose of the proposed nutrient enrichment program is to restore the Karluk ecosystem and sockeye salmon productivity to self-sustaining levels observed prior to their recent decline." Furthermore,in the opening synopsis of the proposal,the text clearly states the following: "This nutrient enrichment proposal describes a restoration, rather than an enhancement project. Once healthy returns of sockeye salmon and appropriate levels of marine derived nutrients are re-established, current regulatory flexibility and renewed attention to the importance of maintaining adult sockeye escapements within appropriate ranges should be sufficient to sustain highly productive runs into the future." Finally,it should be remembered that,at the time this proposal was submitted,the Karluk early run sockeye escapement had not achieved the lower limit of the escapement goal for four consecutive years (2008-2011). The efforts described to increase productivity at the primary level of the lake and to positively affect future adult returns was based on the fact that Karluk was not achieving early run escapement and was providing very little harvest opportunity. Some of the defining characteristics of the proposal submitted by KRAA are the high level of monitoring and data collection KRAA proposes as well as numerous"decision points"that allow for adjustments to nutrient levels and/or the curtailment of nutrient applications should the data indicate that goals for nutrients,chlorophyll,or other indicators have been achieved. The scientific modeling for theoretical nutrient levels resulting from the proposed enrichment program provide further support that the program proposed by KRAA would not be likely to achieve nutrient concentrations greater than those which have occurred in Karluk Lake in the past(EA Section 4.3.3,Table 9,p.72;Appendix D,Table D-1). Furthermore,the proposal includes provisions for annual reports and meetings with ADF&G and USFWS to discuss collected data,productivity and decisions on whether nutrient enrichment is an appropriate action given prevailing conditions—all provisions that support restoration goals rather than enhancement. An enhancement project,on the other hand,would be conducted for the purpose of increased production beyond historic levels and would be designed to take place annually,independent of most environmental factors. Though there is further problematic content in the text of the Draft Preliminary EA,which KRAA will address in its own comments,it should be noted that Chapter 5 of the EA,which addresses Cumulative Effects,concludes that for the Refuge resources outlined in the EA,"the Karluk Lake Nutrient Enrichment project would not have a significant cumulative adverse effect." Additionally,the Section 810 Evaluation required by the Alaska National Interest Land Conservation Act(ANILCA)further concluded there would be"no anticipated adverse effects to access to or competition for subsistence resources from(nutrient enrichment)." Page 4 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. The last two years have seen improved sockeye runs and harvest to Karluk. This has been a relief to Westside fishermen and to those of us who watch to see if Karluk escapement goals will be met— fishermen included. Fishermen do not survive on an unhealthy system or poor returns,and it is in the interest of the resource for all users from bears to subsistence fishermen to tourists and eagles and foxes to commercial fishermen that KRAA proposes to take action to support the health and productivity of Karluk Lake and Karluk sockeye. For the years of 2008-2011,Karluk did not meet early run sockeye escapement goals. Those years of underescapement likely reduced pressure on the system by producing smaller numbers of juvenile sockeye salmon to compete for food,but they also brought fewer nutrients back into the system. Now, after meeting or exceeding sockeye escapement goals for three years,there is a possibility that much larger numbers of juvenile fish could be in competition for food at a time when the lower levels of nutrients from lower escapements are affecting the rearing environment. In the years since 2008,KRAA has continued to collect data and analyze the changing conditions at Karluk Lake. Three years of adequate escapement and two years of improved commercial catch are not evidence that Karluk is not in need of continued stewardship or that nutrient enrichment is not a tool that may yet benefit the system if and when the food resources of Karluk Lake are not capable of supporting a robust juvenile population. Current data indicates that even if permitted,there is a possibility KRAA would not apply nutrients to Karluk Lake in 2015.However,KRAA will continue to pursue lake nutrient enrichment as a restoration activity to be approved by the refuge. Without it,we could see the conditions that led to the failures of 2008-2011 are repeated along with the devastating effects on local fishermen, the community and the economy. In closing,KRAA would like to thank the Kodiak Island Borough Assembly and staff for the sustained interest and tremendous support provided to date. I would take the opportunity to emphasize once again that this process is ongoing,and the need for continued support and public comment is critical not just to the achievement of goals stated by KRAA but to the long term productivity and health of runs at Karluk and our community as a whole. Sincerely, Tina Fairbanks Executive Director Kodiak Regional Aquaculture Association Page 5 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. 14A I Karluk Lake Nutrient Enrichment: Fact Sheet KODIAK REGIONAL AQUACULTURE ASSOCIATION KRAA is one of several nonprofit Regional Aquaculture Associations in Alaska that were formed through State legislation to allow local Alaskans a voice in planning salmon production, enhancement and rehabilitation Led by a volunteer Board of Directors, KRAA works cooperatively with ADF&G to research and monitor Kodiak salmon productivity. Each Regional Aquaculture Association is guided by a Comprehensive Salmon Plan designed to meet the production goals of the region. Through this document, it is KRAA's mission to increase salmon abundance through enhancement projects and rehabilitation of weak salmon runs, and to implement or provide habitat protection or improvement. KRAA represents all Kodiak subsistence, sport and commercial fishermen. KARLUK LAKE NUTRIENT ENRICHMENT PROPOSAL& ENVIRONMENTAL ASSESSMENT • In response to run failures in Karluk early run sockeye salmon from 2008-2011, KRAA submitted to the US Fish & Wildlife Service, Kodiak National Wildlife Refuge a proposal to add nutrients to Karluk Lake in order to support the food base for juvenile sockeye salmon. • The intent of the proposed project was to support the system at the base level, thereby supporting early growth and survival of juvenile salmon with the intended effect of potentially increasing adult returns that would allow for achievement of escapement goals as well as commercial, sport and subsistence harvest. • The project was conceived to be temporary in nature and includes extensive monitoring of productivity through multiple aquatic variables and salmon life stages. • Each year's data is reviewed in-season, post and pre-season to determine whether nutrient enrichment would be a recommended approach for system health. • Nutrient enrichment could be halted at any time if the data indicate it is unnecessary or would be of no benefit. • "Karluk Lake Nutrient Enrichment Environmental Assessment and Section 810 Evaluation"has been released for public comment. • All comments are due no later than Sunday, February 1, 2015 • Public comment supporting a Finding of No Significant Impact for Nutrient Enrichment as proposed in the Karluk Lake Nutrient Enrichment EA as well as a decision and compatibility determination selecting this rehabilitative method as the preferred alternative is critical to KRAA's ability to support the productivity of Karluk Lake, Karluk sockeye salmon,and the community that depends on it. KARLUK RUN FAILURES • From 2008-2011, Karluk runs failed to meet escapement goals, and there was limited fishing opportunity(harvest). 2013 and 2014 have provided improved harvest levels, and escapement goals have been met or exceeded. • 1987-2007 Karluk provided an average harvest level of 620,922 fish (baseline harvest level, excludes 1989). Page 6 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. o 2008-2011 the average harvest level decreased to 90,238 fish—an 85% reduction in harvest levels from the previous 20 year period. o 2009-2011, the reduction was even more extreme: 53,205 fish harvested on average—more than 90% decrease from baseline levels. • The 1987-2007 period of productivity was likely the combined result of rehabilitation and enhancement efforts along with improved productivity island-wide for that period. • The poor returns and harvests that initiated the rehabilitation and enhancement efforts in the 1980s were comparable to or better than those of the current period(2008-2011). • Karluk returns drive fishing time for Karluk and related districts. SCIENCE AND RESEARCH BEHIND KARLUK RUN FAILURES • Large escapements (1999-2003) produced large numbers of offspring. Those juvenile fish cropped down (overgrazed) the food sources in Karluk Lake and nutrients (in limited supply)couldn't replenish those food sources fast enough. o The Lake reached a state of diminished productivity from which it could not recover rapidly. o Juvenile salmon were in competition for a limited amount of food, which lead to poor growth and poor survival. • In 2006 ADF&G recorded the smallest smolt on record for Karluk Lake— small smolt have less chance of surviving in the ocean than do large smolt. o The 2006 year class of smolt began returning from the ocean as adults in 2008. • Karluk nutrient levels (nitrogen, phosphorous and chlorophyll a) drive productivity of other food and prey organisms in the lake. Current data indicate phosphorous is at one of the lowest levels on record. • However, zooplankton levels are high in Karluk Lake—most likely due to a lack of predation (zooplankton is the predominant food source for Karluk sockeye salmon) in recent years. • Escapement goals for both early and late run sockeye were met or exceeded from 2012- 2014. Though the data indicate good rearing conditions, phosphorous levels are low. o Monitoring is now critical as rearing conditions could deteriorate in a competitive environment without sufficient nutrients to bolster the food supply. o Nutrient enrichment, as a tool to restore and support the rearing environment at Karluk Lake, could be the difference between continued productivity and the potential failure to meet future escapements and provide for harvest in coming years. NUTRIENT ENRICHMENT: A RESPONSE TO KARLUK RUN FAILURES • Nutrient enrichment is the controlled addition of nitrogen and phosphorous into, in this case, Karluk Lake. o Nutrient enrichment is safe and effective. o In more than 30 years of research and application, there are no instances in which enrichment has had a lasting negative impact on a lake or watershed,and only one instance of a short term algal bloom of an "undesired"species. • Nutrient enrichment is a rehabilitation technique previously used in Karluk Lake (1986- 1990). o The project contributed to a 20-year period of run success and productivity. Page 7 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. • The nutrient enrichment program proposed by KRAA (2012) takes into account advances in our understanding of nutrient cycling in lakes. o It is modeled to parallel the seasonal cycle of nutrients and nutrient demands in the Lake and designed not to exceed normal parameters or historical levels of nutrients. o The program proposed by KRAA monitors nutrient levels and manages seasonal nutrient applications in an adaptive manner designed not to exceed the proven potential of Karluk Lake. o Bolstering nutrient levels can contribute to greater productivity at all trophic levels (nutrients, phytoplankton, zooplankton, juvenile sockeye growth and survival), in the Lake and, ultimately, greater adult returns. o The nutrients we propose to apply are in the same form as those delivered through natural means. o Nutrient applications are generally proposed for a period of 5-8 years in sockeye systems, due to the sockeye salmon life cycle, but may be halted at any time. • Nutrient enrichment is not an immediate solution: Nutrients applied now would take at least 4-7 years before the effects are realized in adult salmon returning to Karluk Lake. • Nutrient enrichment cannot increase the number of juvenile salmon entering the Lake each year. The goal of nutrient enrichment is to provide the best possible rearing environment for juveniles, which, in turn, will increase their growth and chances of survival. KARLUK RUN FAILURES,THE COMMUNITY AND THE ECONOMY • In conclusion, short term improvements to Karluk escapements and return do not negate the relevance of a potential nutrient enrichment project. The ability to apply nutrients under appropriate circumstances still needs to be achieved. • Karluk Runs hold cultural and historic values of immeasurable importance. o Archaeological sites date back more than 1,000 years. o Karluk sockeye subsistence is still a major factor for the Village of Karluk. • Karluk run failures not only restrict commercial fishing opportunity, they also restrict, and in some cases eliminate, subsistence and sport fishing opportunity. • Fishing restrictions due to poor Karluk returns from 2008-2012 resulted in a cumulative loss of more than $53 million to commercial fishermen. • Greatest impact on set-netters in Karluk and related areas. • An improved harvest in 2014 contributed approximately $15 million in exvessel value to commercial fishermen. • A restored and functioning Karluk sockeye salmon resource is estimated to produce $45.8 million annually in economic output and generate the equivalent of 255 jobs for the Kodiak economy. • The total annual effect of Karluk and related fisheries on the US economy is estimated to be $145.6 million and 1,088 jobs—when functioning at the baseline harvest level established for 1987-2007. Page 8 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. KODIRK KODIAK REGIONAL AQUACULTURE ASSOCIATION REGIONAL AQUACULTURE -ASSOCIATION.-= PRODUCTION AND OPERATIONS MEMORANDUM A TO: KRAA Board of Directors DATE: January 9,2015 FROM: 'l'renten Dodson, P&O Manager SUBJECT: Karluk Enrichment EA The following memo discusses two critical assumptions asserted by the US Fish and Wildlife Service in the Karluk Lake Nutrient Enrichment Preliminary Environmental Assessment and 810 Evaluation (EA). 1) Intent: KRAA's proposed action is an enhancement project not a restoration project 2) Escapement: Increased returns resultant from the project will not increase escapement INTENT Kodiak Regional Aquaculture Association's proposal to introduce nutrients to Karluk Lake was conceived in response to the failure of the early component of the Karluk sockeye return in 2008-2011. The proposal was submitted as a means to reestablish a productive juvenile salmon rearing environment that would, in turn, increase survival and propagate larger returns of sockeye salmon. The increased numbers of sockeye salmon would facilitate a more consistent introduction of marine derived nutrients (MDN) in to Karluk Lake through equally consistent escapement numbers. The project was restorative in nature and designed to be short-term and thereby allow the increase in MDN to replace the need for nutrient enrichment. In fact, page one of KRAA's proposal states: This nutrient enrichment proposal describes a restoration, rather than an enhancement, project. Once healthy returns of sockeye salmon and appropriate levels of marine-derived nutrients are reestablished, current regulatory flexibility and renewed attention to the importance of maintaining adult sockeye escapements within appropriate ranges should be sufficient to sustain highly productive runs into the future. From the beginning of the USFWS document, KRAA's intent is mischaracterized. Section 1.3.1 states: KRAA 1 § Page 9 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Karluk Nutrient Enrichment LA January 9,2015 KRAA's intent in increasing plankton productivity is to increase adult sockeye salmon populations that would be available for harvest by commercial, sport, and subsistence fishermen. KRAA's stated intent of providing nutrients to Karluk Lake was to"help restore the runs of adult sockeye salmon to the Karluk Lake system to previously high, natural levels of production." Further, in section 1.5.3.2 the EA cites the Kodiak Refuge CCP Management Policies and Guidelines on Fishery Restoration and Fishery Enhancement, but omits the last paragraph for Fishery Restoration. The actual definition for restoration in the CCP is: 2.2.11.10 Fishery Restoration Fishery restoration is any management action that increases fishery resources to allow full use of available habitat or to reach a population level based on historical biologic data.Although the goal of restoration is self-sustaining populations,situations may exist in which some form offishery management or facilities could continue indefinitely. Where fishery resources have been severely adversely affected, the Refuge will work with the State of Alaska,local tribes and other partners to restore habitats and populations to appropriate, sustainable conditions. Restoration emphasis will focus on strategies that are the least intrusive to the ecosystem and that do not compromise the viability or genetic characteristics of the depleted population. This may include regulatory adjustments and/or evaluations of escapement goals. ADF&G in cooperation with the Kodiak Regional Aquaculture Association and the Refuge, has undertaken several restoration projects on Kodiak Refuge, including temporary actions such as-the fertilization of Karluk Lake to restore zooplankton productivity for sockeye salmon and a temporary incubation facility in the upper Thumb River(Karluk drainage) to restore sockeye productivity. The Refuge will continue to support similar restoration actions provided they are compatible with the Refuge purposes and the Refuge System mission. The act of providing nutrients as a means of restoration is further supported in the table on 2-85 of the CCP: Fishery Restoration Actions taken to restore fish access to spawning and rearing habitat or actions taken to restore populations to historic levels;includes harvest management,escapement goals, habitat restoration,stocking,egg incubation,and lake fertilization. Temporary actions such as the fertilization of Karluk Lake to restore zooplankton productivity for sockeye salmon is[sic]a prime example of fishery restoration. Fishery Enhancement Activities applied to a fish stock to supplement numbers of harvestable fish to a level beyond what could be naturally produced based on a determination or reasonable estimate of historic levels. The Spiridon Lake Sockeye Enhancement Project is a prime example of fisheries enhancement. KRAA 2 Page 10 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Karluk Nutrient Enrichment FA January 9,2015 While it should be recognized that nutrient enrichment can be used as an enhancement tool, the nutrient enrichment project as KRAA has proposed, is indeed restorative and not enhancement. The proposed project is very much like the fertilization project mentioned in both 2.2.11.10 and 2.85 of the CCP. The purpose of the KRAA project is to "restore populations" and to "reach a population level based on historical biologic data", but not to "supplement numbers of harvestable fish to a level beyond that which could be naturally produced". There is no justification or statement as to why the USFWS has chosen to characterize the proposed KRAA project as enhancement. In fact, the distinction of enhancement appears to cause further required actions specified in the EA under section 4.8.2. 4.8.2.Alternative B(Proposed Action;Lake Nutrient Enrichment) The Proposed Action, nutrient enhancement of Karluk Lake as described, falls under the definition of "fishery enhancement" as defined by the Kodiak Refuge CCP Management Policies and Guidelines [USFWS 2008: Section 2.2.11.11] as it would fertilize rearing habitat and is intended to supplement numbers of harvestable fish to a level beyond that which could be naturally produced bused on a determination or reasonable estimate of historic levels. All of the proposed project area falls within the Minimal Management Refuge Land Management Category, where habitats should be allowed to change and function through natural processes; therefore, a change in management category to Moderate Managementin which changes to the natural environment that are temporary or permanent but small in scale and that do not disrupt natural processes may result—would be required through an amendment to the refuge's CCP. It is unclear that the same measures would need to be taken if the project was categorized as a restoration project,but it is worth inquiry. ESCAPEMENT While the 2.2.11.10 of CCP cites the previous nutrient enrichment program as a means of restoration, the EA suggests there is no information or conclusive data to show that the program worked. Further, the No Action alternative (4.2.2) suggests that"Wild salmon runs fluctuate" and "It appears that sockeye runs are trending upward". In 3.4.1 the EA states: Overall, the 2012 to 2014 numbers mark a substantial difference from those recorded between 2008 and 2011 (see Figures 7 and 8). Considering the adult and juvenile population patterns since 1985, this recent increase was not attributed to stocking and fertilization effort but rather to natural system variability. However,it is stated in a few paragraphs prior that: In fact, 'over-escapement'occurred in 13 years between 1993 and 2007. More recently, 2001 to 2014 Karluk Lake early-run escapements were above the 10 year average(2004- 2013;Fuerst 2014)and exceeded the lower BEG in 10 of those years. KRAA r 3 s d Page 11 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Karluk Nutrient Enrichment EA January 9,2015 And while KRAA posits that the lower runs in 2008 and 2011 could be a result of a reduction in nutrients,the EA previously stated in: However,ADF&G attributes the decreased runs to over escapement between 1985 and 2007, which resulted in large numbers of juveniles that overgrazed and reduced the number of zooplankton available to subsequent broods(Foster 2014). It appears that the EA, or at least the information provided in the EA, suggest that ADF&G feels that over escapement likely caused the decline at Karluk and that this is a natural occurrence in wild salmon populations. Unfortunately, Karluk escapement is, or at least should be, regulated by management and management strategies. However, the EA states in 4.4.6 that The literature indicates that commercial harvest is a primary driver of escapement... and that A current concern is that commercial fishing has reduced the level of MDN. These assertions are confounding since the reasoning for the downward trend in Karluk Lake is stated as over escapement. Which would suggest that commercial fishing did not overharvest salmon returning to Karluk Lake and thereby reduce the number of fish available for MDN, but rather, a large number fish produced too many fry for the Karluk rearing environment to support and therefore reduced the number and/or the health of emigrating juveniles was diminished. In turn, the number of resultant adults returning to the system was reduced and as a result MDN was reduced. These assumptions and the arguments against,as outlined in this memo, are representative of numerous other assumptions and statements made in the EA document that clearly demonstrate bias in the document's construction. It had been KRAA's expectation that the document would provide objective review of the proposed action and alternatives. Various statements, assumptions and conclusions in the document are not supported by citation, evidence, or logically stated deductive reasoning. Furthermore, the implications of characterizing this proposed restoration project as an enhancement project carries implications that are alluded to in vague and non-specific manner. KRAA's official response to the public review draft will, by necessity,be detailed and lengthy. KRAA ;q.'_..;...,'`,n` Page 12 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Island 4, AtU aoa Kodiak Island Borough City of Kodiak 710 Mill Bay Road, Rm. 101 710 Mill Bay Road, Rm. 216 Kodiak,AK 99615 Kodiak, AK 99615 907.486.9310 907.486.8636 November 26, 2012 Mr. Dan Ashe, Director U.S. Fish and Wildlife Service Department of the Interior 1849 C Street NW, Room 3331 Washington, D.C.20240-0001 Dear Director Ashe: The communities of Kodiak Island comprise some of the most active and diverse fishing communities in the country. As such, we depend upon continued productivity of fish and shellfish stocks in the region, and we have particular interest in how our government land management and fishery regulatory agencies conduct their business. As you know, the Karluk River system has seen dramatically reduced sockeye salmon returns in the recent decade and the Kodiak Regional Aquaculture Association (KRAA) has put forth a detailed and well-thought out proposal to enrich the nutrient base of Karluk Lake in order to propel the system into a higher and sustainable level of production. After several years of urging and public pressure, the U.S. Fish and Wildlife Service (USFWS) is finally reviewing KRAA's Karluk Lake Enrichment Proposal for compatibility with the stated purposes of the Kodiak Island National Wildlife Refuge, within which Karluk Lake is situated. However, the USFWS has extended several times the anticipated amount of time it will take to complete the Compatibility Determination (CD), let alone a subsequent environmental assessment. We ask your assistance. Local refuge staff, the Alaska regional staff in Anchorage, as well as any staff involved at the headquarters level need to proceed expeditiously in completion of the CD. Moreover, we recommend a positive finding, especially since similar nutrient enrichment projects have been found compatible with the purposes of the Kodiak NWR in the past. Page 13 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. Director Ashe November 26,2012 Page 2 of 2 We will appreciate your prompt consideration of our request. Sincerely, 111111h , sit erome Selby, Mayor Pat Branson, Mayor Kodiak Island Borough City of Kodiak C: Kevin Brennan, Executive Director, KRAA Cora Campbell, Commissioner, ADF&G Geoff Haskett, Acting Deputy Director for Policy, USFWS The Honorable Lisa Murkowski, US Senate The Honorable Mark Begich, US Senate The Honorable Don Young, US House of Representatives The Honorable Sean Parnell, Governor, State of Alaska Page 14 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. 1 Introduced by: Borough Assembly 2 Requested by: Kodiak Region Aquaculture 3 Association Drafted by: Kodiak Region Aquaculture 4 Association 5 Introduced on: 03/03/2011 6 Adapted on: 03/03/2011 7 8 KODIAK ISLAND BOROUGH 9 RESOLUTION NO. FY 2011-22 10 11 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 12 SUPPORTING THE IMPLEMENTATION OF LAKE FERTILIZATION OF KARLUK, 13 FRAZER, AND SPIRIDON LAKES BY THE KODIAK REGIONAL 14 AQUACULTURE ASSOCIATION AS A SALMON REHABILITATION AND 15 ENHANCEMENT METHOD 16 17 WHEREAS, the Kodiak Management Area salmon fishermen and the Kodiak Island 18 Borough have benefited greatly from salmon enhancement and rehabilitation programs; and 19 20 WHEREAS, the Alaska Department of Fish and Game has a Lake Fertilization Policy built 21 upon strong scientific research and intended to protect wild salmon populations and habitat; 22 and 23 24 WHEREAS, there is a strong body of scientific literature recognizing lake fertilization as an 25 effective method of improving sockeye salmon habitat and production; and 26 27 WHEREAS, lake fertilization has been successfully implemented by the Alaska 28 Department of Fish and Game and the Kodiak Regional Aquaculture Association to 29 rehabilitate and enhance sockeye salmon production of multiple Kodiak Archipelago Lakes 30 in the past; and 31 32 WHEREAS, lake fertilization projects have contributed to sustainable fisheries and 33 economic development that directly benefits Kodiak sport, subsistence, and commercial 34 fishermen, seafood processors, and the Borough government, which receives raw fish tax 35 revenues; and 36 37 WHEREAS, a number of Kodiak Archipelago lakes which have historically been major 38 sockeye salmon producers are currently in a depressed state of production; and 39 40 WHEREAS, among those depressed systems, Karluk, Frazer, and Spiridon lakes have 41 been identified as having strong potential for substantially increased sockeye salmon 42 production if lake fertilization projects are initiated; and 43 44 WHEREAS, the depressed sockeye production of these lakes has a devastating effect on 45 Kodiak's west side and south end salmon fisheries and negative impact on the Borough 46 economy and the five villages in the area;and 47 Kodiak Island Borough Resolution No. FY2011-22 Page 1 of 2 Page 15 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... AGENDA ITEM #2.a. 48 WHEREAS, through the Kodiak Regional Aquaculture Association, Kodiak Management 49 Area salmon fishermen have committed significant funding to lake fertilization to restore 50 these fisheries; and 51 52 WHEREAS, the Borough has a history of providing support and funding for fisheries 53 development, and specifically for fertilization of Karluk and Frazer lakes;and 54 55 WHEREAS, local government support is a key factor in the State Legislature's 56 consideration of support and potential funding for local projects; and 57 58 NOW, THEREFORE BE IT RESOLVED, THAT THE ASSEMBLY OF THE KODIAK 59 ISLAND BOROUGH supports lake fertilization as a salmon rehabilitation and enhancement 60 method and supports the implementation of take fertilization of Karluk, Frazer, and Spiridon 61 lakes by the Kodiak Regional Aquaculture Association as soon as possible; and 62 63 BE IT FURTHER RESOLVED, THAT THE ASSEMBLY OF THE KODIAK ISLAND 64 BOROUGH is committed to educating the community about the need, the benefits, and the 65 safety of lake fertilization projects and will submit letters of support for these projects.to 66 State and Federal legislators and appropriate governmental agencies; and 67 68 BE IT FURTHER RESOLVED, THAT THE ASSEMBLY OF THE KODIAK ISLAND 69 BOROUGH supports the efforts of Kodiak Regional Aquaculture Association to obtain from 70 the U.S. Department of Interior a NEPA waiver, categorical exclusion, or statutory exemption 71 for the proposed projects, or otherwise facilitate an expedited review and permitting process, 72 so that lake fertilization can be implemented as early as May 2011;and 73 74 BE IT FURTHER RESOLVED, THAT THE ASSEMBLY OF THE KODIAK ISLAND 75 BOROUGH will allocate matching funds of up to $50,000 to Kodiak Regional Aquaculture 76 Association lake fertilization projects.and will seek to procure additional funding for these 77 projects from the State of Alaska. 78 79 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 80 THIS THIRD DAY OF MARCH, 2011 81 • 82 . : KODIAK ISLAND BOROUGH 83 84 • • 86 ATTEST: Je me M. Seth :emit'Mak 87 88 89 90 Nova M. Javier, MM , Borough Clerk Kodiak Island Borough Resolution No. FY2011-22 • Page 2 of 2 Page 16 of 40 Karluk Lake Nutrient Enrichment Preliminary Environmental As... m G C w Kodiak Island Borough Potential Land Disposal Area - East Monashka Bay Road Overview O. e.}' ,u .3iT k., &.�??..t' y ice;:h ,flit*-y w ,�}tt": I Q S xa Ct 1 "3` -',----,...k4:-,,`a "-'• -q+�Y�'}' +5 �"x"` \xi 'z3 r 1-''"` '- -;-..�` i °> ' c „� , R 'S` a '' } 4. t M#3%1.41- m ��c`x sr -, 'a?k.i CD ` a +MILLER PTr'.. ,..M "". q .'"•''.1:....4;..;14.1"".t a W Ivry { �e- 5TR* 1 tt ""'^b �y Z :-...,";•'; '\ O "-...i.‘,;.ip$t . B ,moi m4F�L,dVr® :� .1...': - " `-'t4'g '5yp1 Cncr "�NaGs?9 ry .te vime.r,PV -i`avji��S . t "'.-: -;.;..v, a 8 AtitO d. (D r �� edA�d®i�y�®gr �®� ®�®®�•p."+! 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" \'��llje44; x .. ,i Rt��`}}}. „`,��" `. �+4�°(�4r f a� it ti.,(, ,-X n 2 p)< tF7,:.3. it t r1 `V 110 1/4 14 §l ' '4..'+".y. `,"1a 'sit . .e +t r: .1 t "t +Fx "4tt4;t 1 -�-- t t �. i '1�� .� . a a t� 'R �� a.,Rt� r.+",d sINp of .{° e!L rr o'c. � ` 4"-1-.0i-,4-t4,. � a. .'th� • t y ,gg:t'',t "'ai'4 y,', r,5 2.-• '' • { . t I$ I A t 1 1v 1 3 wx 4 /"1. .1,•!;,e• i 5'i +q:o- 5v 'x tg, t' e,,'S t; P a ''�,. k,. 3,4 $$, r ,�^ vx 4 !" t ''3rt"". ' ' s '3 x .. "P''y..$5"' x x Vk.T4 t 't = i122 p ;T �§ a"' tS y .��t F'iy �n 'dk� ..y,G 1p. �C(4 �y i'�X'�'} � 5�4t • Page 25 of 40 Future Land Sale Update- Bob Scholze, Resource Management 0... AGENDA ITEM #2.b. • RECON Rowland Engineering ansuiwUS 991 West/vac Mmvq•Pelmn,A6,Ie99645 907.7467630 9073553006 SI•nne@,eonticen Kodiak Island Borough March 4,2011 710 Mill Bay Road Kodiak,Alaska 99615 Attn.: Robert Scholze,Resource Management Officer Re: Kodiak Island Borough,Salonie Creek Materials Investigation. Proposed Steps Toward Development Mr.Scholze: At your request,RECON LLC has compiled a list of suggested steps for the development of the Salonie Creek gravel deposits. This proposed development strategy is based on RECON's knowledge of the deposit and limited direction supplied by the Kodiak Island Borough. It is expected that this strategy outline may change after public and landowner input. Initial testing of the Salonie Creek gravels has shown that the deposits located should make a suitable replacement for gravels currently mined from Bell Flats. In addition RECON believes there is a sufficient quantity of gravel to justify commercial extraction. Based on this,RECON recommends the following steps: I. Compile all local relevant geographic and survey data. This ideally includes recent high resolution air photos,DEM/DTM data if available, and local property plats. This may require purchase of data from third parties. RECON assumes the majority of this work can be completed by the KIB GIS department. 2. Draft a proposed project outline, including an initial access road description and definition of individual resource area property boundaries. 3. Canvas local/non-local contractors to determine interest and gather input. 4. Complete further delineation of the deposit. This effort would include 4-8 drill holes, 8-14 additional test pits and 5-10 additional samples tested. This information would be used to develop a better quantity and quality determination. Page 1 of 2 Page 26 of 40 Future Land Sale Update - Bob Scholze, Resource Management 0... AGENDA ITEM #2.b. 1 i RECON� Rowland Engineering Consultancy 481 Wen Alcor Avenue, Al+i4n 99645 907.7463670 9073553006 n0•waverer&xr 5. Contact governmental agencies to assess permitting issues, specifically regarding stream crossings. 6. Design/engineer access road. 7. Finalize land subdivision, including new road easement. Zone resource parcels for industrial development or resource extraction. 8. Put lots on the market for sale and/or lease. If leased, terms would include stipulations regarding payment,permitting,bonding,and operation of the sites, 9. Obtain permits for road construction and site development. To be done by the site developer with oversight by KIB. 10.Construct access road and develop sites. Access road may be constructed by either KIB or the developer depending on the nature of the agreement. Although this list was developed in a roughly linear order, it should be noted that many of these steps may be perused in a parallel fashion. For instance, KIB could begin working with the permitting agencies at the same time that further testing of the site is ongoing. RECON appreciates the opportunity to work with the Kodiak Island Borough on this project. For any questions, please contact Isaac Rowland at (907) 322-5545 or isaacPreconlic.net. 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'!i.�f~ :- • 4111..04,-(4/ r 1''W i"4"R'x 1 . +t'R 'F 4-4,s{d'�t'-, t F.'•s rCcS'my^}yy� i(g!�'�tr r-,(-1'rk(�.yf }; i uyt^�p yJ¢d�/' �1,+y,*��r by-".*byr '�":1e5 �f 'J q-;.+�"ry�d � I A f 'd Y k f nal �� ll,tltti r"Qll`.� 3 tfA '�+' "3„. 3 r i S } iF T i , . i ;�. 4f( 'Win' At ,j IL 51.0. ! i k r i S2r°j.Jf ydki+'a W § fy 7 -{ .�9 .:it" '11'1444(.4:44.04.:4-04`j'h t°4r- 'Auk' 't S ,'ftft li -,4 v t = •:•!'.'17. j +"�r.{rit {..i�, fir 1.714tm, i ar• ] 1` : ..j E r .01.04.'14;e:'it'a't r. y a• s' w ��}'";a�r .f'H. v t P Ja �'"7 c04",h*�• i , ,----',"21.41.:7()N.ref s` Cti .0 4414. • t.,41.t4 4 4.4 41`��' st 4,S „ ,. ttne1 i Y'�-St i"'A 'S. an r tx 4 v ri, r'• ti #• r f�1 .Agp *. " r :nom. M y N G"31�Yfl i /''t i..'i w.-4"4//21:,e :**tong*" Iv' t{s, p'Sa 9//.:'r}:,e .1i i i J, xi .In err '4 ,t S , "Pit 7,,a,r�.. �u+a 3 ps, ,ttytM 44 yp* t y jfa ft F tyv t " c ,. , -". ; ttely. Salonie Creek Gravel Planning - Routes to I Test Pit Sites P1,0 w110 -73 lr.�i 1.11eNn wed leo m..Tel Pis -PYn11111M ass S;�L'+l.rl'2I ~s � iV:P XY4YY4eJ Yn,p1� ' - �' r`5/ ^• .::'ar:alury. 0 105 '].A 500.sal Page 28 of 40 Future Land Sale Update - Bob Scholze, Resource Management 0... AGENDA ITEM #2.c. ' Sec.29.45.050. ALASKA STATUTES Sec.29.45.050, 1." 6 I Sec.29.45.050.Optional exemptions and exclusions. (a)A municipality may exclude or exempt or partially exempt residential property ; _` from taxation byordinance ratified bythe voters at an election. An exclusion or 4<;; �,:• F r exemption authorized by this subsection maybe applied with respect to taxes levied in a • t service area to fund the special services.An exclusion or exemption authorized by this ': subsection may not exceed the assessed value of$50,000 for any one residence except i that a municipality may,by ordinance, annually adjust their voter-authorized exemption `t by the amount calculated by the State Assessor to reflect the increase, if any,in the annual average cost of living,using the U.S.Department of Labor CPI-U for Anchorage. d (b)A municipality may by ordinance ) 6 (1)classify and exempt from taxation 4 n (A)the property of an organization not organized for business or profit-making purposes and used exclusively for community purposes if the income derived from rental of that property does not exceed the actual cost to the owner of the I Mu� use by the renter; ' ` (B)historic sites,buildings,and monuments; (C)land of a nonprofit organization used for agricultural purposes if rights to subdivide the land are conveyed to the state and the conveyance includes a covenant restricting use of the land to agricultural purposes only;rights conveyed to the state under this subparagraph may be conveyed by the state only in accordance with AS 38.05.069(c); (D)all or any portion of private ownership interests in property + that,based upon a written agreement with the University of Alaska,is used exclusively for student housing for the University of Alaska;property may be exempted from taxation under this subparagraph for no longer than 30 years unless the exemption is r, ,l specifically extended by ordinance adopted within the six months before the expiration of r that period; (E) a residential renewable energy system that is used to develop ;s means of energy production using energy sources other than fossil or nuclear fuel, j ,„4 including windmills and water and solar energy devices located in the municipality; I (2)classify as to type and exempt or partially exempt some or all types of personal property from ad valorem taxes. ,'4 (c)The provisions of(a)of this section notwithstanding, ,1 (1)a borough may,by ordinance,adjust its property tax structure in whole 3. 33 k or in part to the property tax structure of a city in the borough, including but not limited to,excluding personal property from taxation,establishing exemptions,and extending the ; ok redemption period; x> VI i (2)a home rule or first class city has the same power to grant exemptions *4 or exclude property from borough taxes that it has as to city taxes if t` (A)the exemptions or exclusions have been adopted as to city t11 taxes;and n (B)the city appropriates to the borough sufficient money to equal `k..-141 revenues lost by the borough because of the exemptions or exclusions,the amount to be determined annually by the assembly; 3 to ;1 ). 8 c 1�t tx e °<M Page 29 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. , Sec.29.45.050. ALASKA STATUTES Sec.29.45.050. (3)a city in a borough may,by ordinance,adjust its property tax structure ., in whole or in part to the property tax structure of the borough,including but not limited to exempting or partially exempting property from taxation. ";'? (d)Exemptions or exclusions from property tax that have been granted by a home rule municipality in addition to exemptions authorized or required by law,and that are in effect on September 10, 1972,and not later withdrawn,are not affected by this chapter. -r.'>•is (e)A municipality may by ordinance classify and exempt or partially exempt i;' -' from taxation privately owned land,wet land and water areas for which a scenic, ' conservation,or public recreation use easement is granted to a governmental body. To be eligible for a tax exemption,or partial exemption,the easement must be in perpetuity. ' i The easement is automatically terminated before an eminent domain taking of fee simple Pr, title or less than fee simple title to the property,so that the property owner is compensated at a rate that does not reflect the easement grant.The municipality may t-; provide by ordinance that,if the area subject to the easement is sold,leased,or otherwise • disposed of for uses incompatible with the easement or if the easement is conveyed to the "` owner of the property,the owner must pay to the municipality all or a portion of the l!`` amount of the tax exempted,with interest. I'r (I)A municipality may by ordinance exempt from taxation all or part of the increase in assessed value of improvements to real property if an increase in assessed 1i" value is directly attributable to alteration of the natural features of the land,or new ' -;I-1 maintenance,repair,or renovation of an existing structure,and if the alteration, I` ,-rt:. maintenance,repair,or renovation,when completed,enhances the exterior appearance or t f aesthetic quality of the land or structure.An exemption may not be allowed under this subsection for the construction of an improvement to a structure if the principal purpose of the improvement is to increase the amount of space for occupancy or nonresidential i ! _ use in the structure or for the alteration of land as a consequence of construction activity. !' ' An exemption provided in this subsection may continue for up to four years from the date the improvement is completed,or from the date of approval for the exemption by the r t s4 local assessor,whichever is later. 1 ' (g)A municipality may by ordinance exempt from taxation all or part of the ll; increase in assessed value of improvements to a single-family dwelling if the principal purpose of the improvement is to increase the amount of space for occupancy.An i � exemption provided in this subsection may continue for up to two years from the date the 'i improvement is completed,or from the date of approval of an application for the i exemption by the local assessor,whichever is later. • rr I (h)A municipality may by ordinance partially or wholly exempt land from a tax for fire protection service and fire protection facilities and may levy the tax only on ' ! f improvements,including personal property affixed to the improvements. (i)A municipality may by ordinance approved by the voters exempt from taxation the assessed value that exceeds$150,000 of real property owned and occupied as a permanent place of abode by a resident who is (1)65 years of age or older; (2)a disabled veteran,including a person who was disabled in the line of duty while serving in the Alaska Territorial Guard;or ! (3)at least 60 years old and a widow or widower of a person who qualified for an exemption under(1)or(2)of this subsection. I 139 Page 30 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. • 4'tye it lee Sec.29.45.050. ALASKA STATUTES Sec.29.45.050. i' w 4 141 b 0)A municipality may by ordinance approved by the voters exempt real or ''"'S '1 property in a taxing unit used in processing timber after it has been delivered to r '•. the processing site from up to 75 percent of the rate of taxes levied on other property in - �T that taxing unit.An ordinance adopted under this subsection may not provide for an N3, t exemption that exceeds five years in duration. In this subsection "taxing unit"means a x,74 tk kk i municipality and includes t !' g; (1)a service area in a unified municipality or borough; 14 ::, i (2)the entire area outside cities in a borough;and ! t (3)a differential tax zone in a city. tail j. (k)A municipality may by ordinance approved by the voters exempt from 4'70..4.! 0 taxation pollution control facilities that meet requirements of the United States , �i Environmental Protection Agency or the Department of Environmental Conservation.An s 7a ordinance adopted under this subsection may not provide for an exemption that exceeds $A i five years in duration. 1l .*a (I)A municipality may by ordinance exempt from taxation an interest,other than I} record ownership, in real property of an individual residing in the property if the property " a has been developed,improved,or acquired with federal funds for low-income housing at; and is owned or managed as low-income housing by the Alaska Housing Finance $` r Corporation under AS 18.55.100— 18.55.960 or by a regional housing authority formed r' i under AS 18.55.996. However,the corporation may make payments to the municipality y; ; or political subdivision for improvements,services,and facilities furnished by it for the ry,"; :,,, li benefit of a housing project,and this subsection does not prohibit a municipality from receiving those payments or any payments in lieu of taxes authorized under federal law. ' till,' 4'17 (m)A municipality may by ordinance partially or totally exempt all or some types • '' li of economic development property from taxation for up to five years.The municipality ° "•4` t p may provide for renewal of the exemption under conditions established in the ordinance. ' i ' However,under a renewal,a municipality that is a school district may only exempt all or \"444.4 "• t a portion of the amount of taxes that exceeds the amount levied on other property for the Ii school district. A municipality may by ordinance permit deferral of payment of taxes on i,i 0 all or some types of economic development property for up to five years.The municipality may provide for renewal of the deferral under conditions established in the ' $ir4i,• ordinance.A municipality may adopt an ordinance under this subsection only if,before it • I , is adopted,copies of the proposed ordinance made available at a public hearing on it contain written notice that the ordinance, if adopted,may be repealed by the voters ,,t «x M. through referendum.An ordinance adopted under this subsection must include specific r '�¢F!J 7 eligibility requirements and require a written application for each exemption or deferral. `: In this subsection"economic development property"means real or personal property, II, including developed property conveyed under 43 U.S.C. 1601 et seq. (Alaska Native ; ht. Claims Settlement Act),that .T.) I k"ii' (I)has not previously been taxed as real or personal property by the municipality; 1r (2)is used in a trade or business in a way that • mill- (A)creates employment in the municipality; ,,f', (B)generates sales outside of the municipality of goods or services "r '1' produced in the municipality;or f .3 ; . tl, ▪ i lo 4 `':,li 140 .,• Page 31 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. y Sec. 29.45,050. ALASKA STATUTES Sec.29.45.050. Ji i (C)materially reduces the importation of goods or services from outside the municipality; and I (3)has not been used in the same trade or business in another municipality for at least six months before the application for deferral or exemption is filed;this paragraph does not apply if the property was used in the same trade or business in an area • that has been annexed to the municipality within six months before the application for ' deferral or exemption is filed;this paragraph does not apply to inventories. (n)A municipality may by ordinance classify as to type inventories intended for export outside the state and partially or totally exempt all or some types of those inventories from taxation,The ordinance may provide for different levels of exemption ' for different classifications of inventories.An ordinance adopted under this subsection must include specific eligibility requirements and require a written application,which shall be a public document,for each exemption. (o)A municipality may by ordinance partially or totally exempt all or some types of deteriorated property from taxation for up to ID years beginning on or any time after the day substantial rehabilitation,renovation,demolition,removal,or replacement of any structure on the property begins. A municipality may by ordinance permit deferral of : payment of taxes on all or some types of deteriorated property for up to five years ; 1 beginning on or any time after the day substantial rehabilitation,renovation,demolition, removal or replacement of any structure on the property begins.However,if the entire ownership of property for which a deferral has been granted is transferred,all tax I payments deferred under this subsection are immediately due and the deferral ends. I : Otherwise,deferred tax payments become due as specified by the municipality at the time I; the deferral is granted. The amount deferred each year is a lien on that property for that year.Only one exemption and only one deferral may be granted to the same property I ! under this subsection,and,if an exemption and a deferral are granted to the same property,both may not be in effect on the same portion of the property during the same I time.An ordinance adopted under this subsection must include specific eligibility requirements and require a written application for each exemption or deferral.An I application for a deferral must specify when payment of taxes for each year of deferral will become due,together with an explanation of the reasons for each proposed date for consideration by the municipality. In this subsection, "deteriorated property" means real property that is commercial property not used for residential purposes or that is multi-unit residential property with at least eight residential units,and that meets one of the following requirements: (1)within the last five years,has been the subject of an order by a government agency requiring environmental remediation of the property or requiring the i property to be vacated,condenined,or demolished by reason of noncompliance with ii laws,ordinances,or regulations; (2)has a structure on it not less than 15 years of age that has undergone ` ( substantial rehabilitation,renovation,demolition,removal,or replacement,subject to any conditions prescribed in the ordinance;or (3)is located in a deteriorating or deteriorated area with boundaries that have been determined by the municipality. (p)A municipality may by ordinance partially or totally exempt from taxation a private leasehold,contract,or other interest held by or through an applicant or proposed I' , 141 11' Page 32 of 40 Assessor's Discussion on Optional Exemptions and Current Exe,.. AGENDA ITEM #2.c. mr",r,974, �p a. Sec.29.45.050. ALASKA STATUTES Sea 29.45.050 applicant in any property,assets,project,or development project owned by the Alaska :8114 ' Industrial Development and Export Authority under AS 44.88. Nothing in this f"`xy subsection prohibits a municipality from entering into an agreement and receiving t payments in lieu of taxes authorized under AS 44.88.140(b). (q)A municipality may by ordinance partially or totally exempt from taxation land from which timber is harvested that is infested by insects or at risk of being infested by insects due to an infestation in the area in which the land is located.A municipality i _I; may provide that an exemption for land under this subsection applies only to increases in 'I 'I assessed value that result from the timber harvest. A municipality may by ordinance t i Ppartially or totally exempt from taxation improvements to real property,including V°i, d personal property affixed to the improvements, if the improvements are A aai (I)located on land from which timber is harvested that is infested by it!I insects or at risk of being infested by insects due to an infestation in the area in which the A41° i( land is located;and tn � (2)used for or necessary to the harvest of the timber that is infested by ' insects or in danger of insect infestation. i+ (r)A municipality may by ordinance exempt from taxation an amount not to '' exceed$10,000 of the assessed value of real property owned and occupied as a t permanent place of abode by a resident who provides in the municipality volunteer(1) "Ill fire fighting services and is certified as a fire fighter by the Department of Public Safety, 3 rt 1 or(2)emergency medical services and is certified under AS 18.08.082. If two or more kItti individuals are eligible for an exemption for the same property,not more than two 04 exemptions may be granted. ti, (s)A municipality may by ordinance partially or wholly exempt from taxation the tr i real property owned and occupied as a permanent place of abode by a resident who is the 4 i' widow or widower of a member of the armed forces of the United States injured serving kb; on active duty while eligible for hostile fire or imminent danger pay who dies because of 1 1, the injury or complications related to the injury or its treatment. The ordinance must ;^i.+ ' include requirements for determining eligibility for the exemption and a procedure for !p is, applying for the exemption. a I (t)A municipality may by ordinance approved by the voters partially or totally exempt M� from taxation a farm structure used exclusively for farming activity,or purposes directly 14llV', related to farming activity,if the farm structure is owned or leased by a person that is it I ,tl actively engaged in farming and that derives at least 10 percent of the person's yearly e;, gross income from farming activity,and the structure is used for (1)the growing, storage,or processing of grains,fruits,vegetables,or other crops i intended for human consumption and produced by the owner's or lessee's farming 1 ' activity; (2)the storage or processing of gij 3s (A)feed for livestock,poultry,or other animals used in the owner's or lessee's farming activity; ($)milk or milk products produced by the owner's or lessee's farming activity;or IN a, (3)stabling or milking the owner's or lessee's dairy animals. , 11 (u)In this section,"fanning activity"means raising and harvesting crops;feeding, breeding,and managing livestock;dairying;or any combination of those activities. 142 Page 33 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. SCC.29.45.050. ALASKA STATUTES Sec.29A5.050, i (v)A municipality may by ordinance exempt or partially exempt from taxation for up to 10 years property in a military facility zone that creates or supports industry, development,or educational or training opportunities beneficial to a facility. An ordinance adopted under this subsection must include specific eligibility requirements i and require a written application for each exemption. In this subsection,"facility"and "military facility zone"have the meaning given in AS.26.30.900. (w)A municipality may by ordinance classify and exempt or partially exempt from taxation all or a portion of privately owned real property rented or leased for use as a • charter school established under AS 14,03.250 I • , (§ 12 ch 74 SLA 1985;am § l ch 103 SLA 1985;am §5 ch 70 SLA 1986;am§ 1 ch 151 SLA 1988;am§2 ch 73 SLA 1989;am § 1 ch 98 SLA 1989;am § 15 ch 93 SLA 1991; t; am§ 107 ch 4 FSSLA 1992;am§ 1 ch 66 SLA 1993;am§ 1 ch 7 SLA 1994;am § 1 ch 65 SLA 1994;am§ 1 ch 40 SLA 1995;am§ 1 ch 70 SLA 1998;am§ 1,2 ch 8 SLA 1999;am§4 ch 117 SLA 2000;am § I ch 664 SLA 2002;am § 1 ch 54 SLA 2002;am §§ j r 2,3,4,5 ch 140 SLA 2004;am§ 40 ch 56 SLA 2005;am §§2,4 ch 44 SLA 2006;am§ 1 ch 89 SLA 2008;am § 10 ch 83 SLA 2010;am§ 1 2012 Primary Election Ballot .j' Measure 1;am§ I ch 66 SLA 13;am § 1 ch 57 SLA 14;am§35 ch 15 SLA 14) 1i f Effect of amendments. The 2014 amendment added subsections(v)effective October 5, 2014 and(w)effective July 1,2014.The 2013 amendment,effective September 26,2013, added subsections(t)and(u)for a ten year period. Subsections(t)and(u)will be repealed • ' September 26,2023. The 2012 amendment,effective December 1,2012,amended subsection (a)by voter initiative.The amendment changed the maximum value of residential property tax j a municipality can exempt,from 520,000 to$50,000 by ordinance and voter ratification.The " ; amendment also permits the municipality to annually adjust the exemption to reflect inflation i } as measured by the consumer price index(CPI-U)for Anchorage.The 2010 amendment, effective June 17,2010, added subparagraph(E)to subsection(b). The 2008 amendment I i; added subsection(s). The 2006 amendment effective August 23,2006,amended subsection I( • (o)to requite payment of deferred taxes upon transfer of'entire'ownership of a tax deferred l 1 , E property;added"Otherwise,deferred tax payments become due as specified by the I ! municipality at the time the deferral is granted";added"An application for a deferral must ,{ " specify when payment of taxes for each year of deferral will become due,together with art 4 explanation of the reasons for each proposed date for consideration by the municipality";and ,1 ,, repealed the delayed repeal clause as amended. The 2005 amendment effective June 25,2005 amended subsection(m)to modify the ANCSA citation. The 2004 amendments effective June 1 ? 30,2004 amended subsection(a)to address exemptions in a service area to fund special services and raised the exemption from$10,000 to$20,000;amended subsection(o)to extend1(1 ! ' the exemption for deteriorated property from 5 years to 10 years,extended the exemption to . include demolition or removal,expanded the definition of deteriorated property. The first (i-; 2002 amendment,effective January I,2003,added subsection(r). The second 2002 amendment,effective June 30,2002,added the subsection(q)and provided that it is si b retroactive to January 1,2001.The 2000 amendment,effective July I,2000,added subsection ( 1 i ; (p).The 1999 amendment,effective July 1,1999,made substantive changes to subsection(o). ! 4' The 1998 amendment,effective July I, 1998,added subsection(o).The 1995 amendment, .r1 ,i " , effective August 23,1995,rewrote subsection(b).The first 1994 amendment,effective July 5, " 1 Vit., 1994,added paragraphs(b)(6)-(b)(9)and made a related stylistic change.The second 1994 ..) 1 s. amendment,effective August 23, 1994,added former subparagraph(b)(2)(D).The 1993 1 amendment,effective September 22, 1993,in subsection(n),deleted the former second and �> 1 third sentences.The 1992 amendment,effective July I, 1992,rewrote subsection(I).The 1991 it amendment,effective September 30,1991,inserted"including a person who was disabled in ;. ( w. the line of duty while serving in the Alaska Territorial Guard"in paragraph(i)(2).The first f! , ; 1 1 .. i i` 143 t'. Page 34of40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. Sec.29.45.051. ALASKA STATUTES Sec.29.45.052. 1989 amendment,effective May 31, 1989,in subsection(e),deleted"However"from the CI beginning of the third sentence and added the present last sentence,The second 1989 amendment,effective September 10,1989,added subsections(m)and(n).The 1988 'ryI -. amendment,effective January I, 1989,added subsection(1). ,#i ', ec. 9.45.051.Tax deferral for certain subdivided property. i h (a) A municipality may by ordinance permit deferral of payment of taxes on all ; {' or a portion of the increase in assessed value directly attributable to ' ' (1) the subdivision of a single parcel of property into three or more , parcels;and ' , (2) any improvements made to the property necessitated by its subdivision. f• ' (b) A deferral from taxation allowed under(a)of this section shall be limited to a ' maximum period of five years, A municipality may by ordinance provide for the deferral of payment of taxes permitted under(a)of this section to be of a shorter duration. ' ` (c) Subject to(b)of this section,a municipality may also by ordinance provide ; that (1) the deferral is terminated when (A) a lot in the subdivision is sold;or i;')•' (B) a residential or commercial building is built on a lot in the ,; subdivision;or `4 '4 (2) the deferral continues for the unsold lots in the subdivision after (A) a lot in the subdivision is sold;or "4�l (B) a residential or commercial building is constructed on a lot in a}i' the subdivision.(§22 ch 64 SLA 2012) 'i ;;4'. 3 . Effective dales.Section 22,ch.64,SLA 2012,which enacted this section,took effect on July I, . in ` 2012. .=.... t tyl Sec.29.45.052.Tax deferral for primary residences. (a)A municipality may by ordinance provide for the deferral of all taxes on ;;,, ' property that is owned, in whole or in part,by an individual ;:1' (I) who occupies and has occupied the property for at least 10 consecutive years as the individual's primary residence; ; (2) whose income is at or below federal poverty guidelines for the state ',..L., set by the United States Department of Health and Human Services. (b) An individual must apply for each year that a deferral is sought and supply r proof of eligibility for the deferral for that year in accordance with requirements set out in '! t, y` the ordinance that authorizes the deferral.Taxes for a year that are deferred do not become payable until ownership of the property is transferred from the individual who y' " obtained the deferral.A municipality that provides for a deferral of property taxes under I C ,, this subsection may not impose interest on the taxes deferred between the time the deferral is granted and the time the taxes become payable,(§ 3 ch 44 SLA 2006) ;' brl 144 ' Page 35 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. • JAN 15 WORKSESSION ON EXEMPTIONS Page 1 of 2 REQUIRED PROPERTY TAX EXEMPTIONS:Title 29 lists all required exemptions and has a myriad of optional exemptions that a municipality may adopt. Required exemptions are: 1) property of a municipality,the state,or feds including all political subdivisions,agencies,or corporations;2)ANCSA lands not developed, native allotments and BIA trust lands.; 3)household furniture and personal effects; 4) property used exclusively for nonprofit religious,charitable, cemetery, hospital,or educational purposes; 5) money on deposit; 6) natural resources in place; 7) Up to $150,000 of assessed value of citizens over 65 or disabled veterans; 8) Property owned by the VFW. OPTIONAL PROPERTY TAX EXEMPTIONS: 1. Community Purpose (currently in our codes for Senior Center, Kodiak State Fairgrounds, Kodiak Jaycees (now Kodiak Rodeo and State Fair), Chamber of Commerce). 2. Some types of Personal Property(Currently in our code) 3. Leasehold interest in Title 18 properties. (Already done for most) 4. Inventories(currently enacted) 5. Widow or Widower under 60 years of age of a deceased senior or disabled vet previously qualified for an exemption. 6. Widow or widower of a person who died as a result of service connected cause while serving as a member of the military. 7. An exemption of more than $150,000 of assessed value in case of hardship.' 8. Up to$50,000 exemption for residential property. 9. Residential renewable energy system. 10.Improvements to real property to enhance the exterior appearance or aesthetic quality of the land or improvements. 11.Land value from special revenue tax for fire protection service district. Parameters of a hardship exemption are to be locally determined. Page 36 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. JAN 15 WORKSESSION ON EXEMPTIONS Page 2 of 2 12.AII or partially exempt senior and disabled veterans above$150,000 13.Economic development property. 14.Deteriorated commercial or multi-family residences. 15.Up to$10,000 of a residence owned and occupied by a volunteer firefighter or emergency medical technician. 16.Some agricultural buildings. 17.Deferral on taxes of a primary residence of resident whose income is below federal poverty guidelines. 18.Tax adjustment for property affected by natural disaster with losses exceeding$1000. CURRENT EXEMPTION VALUES (Not including federal and municipal lands) Value Taxes 2014 Senior and DAV $75,880,178 $ 815,700 2015 Senior and DAV Projection $80,000,000 $ 860,000 2015 Religious Exemptions $27,821,900 $ 299,090 2015 Charitable $10,396,700 $ 111,760 2015 Community Purpose $4,572,300 $ 49,150 2015 Education $3,552,000 $ 38,180 2015 Non-Profit(KEA) $8,806,800 $ 94,670 2015 ANCSA/Native Lands $272,795,100 $2,932,550 2015 Total Exemptions $407,944,800 $4,385,400 Page 37 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.c. -Anchorage commission wants a halt to unfair property tax exemptions Page 1 of 1 Ai k Despatch Nevus Published on Alaska Dispatch(htto://www,adn.com) flame Anchorage commission wants a hall to unfair property tax exemptions Davin Helly m January 14, 2015 An Anchorage advisory commission report released Wednesday recommends reducing or eliminating local property tax exemptions for nonprofits, government agencies and other entities, part of a broad-ranging effort to address what is being described as unfairness in state and city tax codes amid declining oil prices. Hospitals, churches with large real estate holdings, labor organizations and Alaska Native corporations are among those that could be affected if the report's recommendations are ultimately adopted by changing Anchorage and state law.The report,compiled by the city's Budget Advisory Commission, estimates that more than $76 million in assessed property tax valuations is shifted annually to other property taxpayers that don't enjoy the exemptions. "Any tax system must be fair to survive the scrutiny of the public process and make participation a willful action," Shirley Nelson, chair of the commission,wrote in a letter that introduces the report. "This report outlines some of the inequities and problems as to the current property taxpayer subsidization of numerous nonprofit and governmental entities." The report found that state and local statutes are vague on the definition of a nonprofit for purposes of taxation. It described a 2 percent state-mandated tax exemption when an owner installs a sprinkler system as outdated.And it said that exemptions required by state law led to a $46.1 million"unfunded mandate" in 2013, including an exemption for senior citizens and properties owned by the state of Alaska. The report recommends legislative and municipal code changes that would allow Anchorage to collect payments from nonprofits and other exempt entities for essential public services to their properties--police,fire and public works. Such payment-in-lieu-of-taxes agreements, already in place in a limited capacity in Anchorage, could recoup between $40 million and$60 million in annual revenue for the municipality, according to the report. Reducing or eliminating property tax exemptions requires a change to state law.Copies of the budget commission's report were also sent Wednesday to Gov. Bill Walker and the president officers of Alaska Legislature. Nelson noted in her letter that the timing of the report coincides with falling oil prices and the state's uncertain fiscal health. The state's budget shortfall, along with expected reductions in revenue sharing,"have the potential to pass down costs locally,thereby increasing the load on current property taxpayers;she wrote. Source URL:htto:/h ado.com/article/20150114/anchorage-commission-wants-hall-unfair-property-tax-exemptions Links: [1]http://w,w.adn.com]authorldevin-kelly http://www.adn.com/print/article/201501 14/anchorage-commission-wants-halt-unfair-prop... 1/14/2015 Page 38 of 40 Assessor's Discussion on Optional Exemptions and Current Exe... AGENDA ITEM #2.d. From: Bradley Gilman [mailto:mackerel@hsgblaw-dc.com] Sent:Monday,January 12,2015 6:47 AM To:Nova Javier Cc: Bud Cassidy; Rick Marks;'Seb O'Kelly' Subject: RE: KIB Possible Dates for DC Lobbying Nova: Here are the dates for March through May. Let me know if you want June dates as well. We would need only two days. Folks could come early in the week,middle,or the end of the week. March 2-5 March 16-19 March 23-26 April 13-16 April 21-24 April 29-May 1 Brad From:Nova Javier(mailto:njavier@kodiakak.usj Sent:Wednesday,January 07,2015 7:29 PM To: mackerel@hsgblaw-dc.com Cc:Bud Cassidy Subject:KIB Possible Dates for DC Lobbying Importance: High Hi Brad, Happy New Year! If the Assembly decides to go to DC this year to lobby,can you give us possible dates?They are hoping to discuss this on Thursday,January 15. Thank you, Nova Ms. Nova M.Javier, MMC Borough Clerk 710 Mill Bay Road Kodiak,AK 99615 Office Number: (907)486-9310 Page 39 of 40 Washington DC Lobbying Dates and Attendees and Other Upcomin... AGENDA ITEM #2.d. Possible Dates Given for Lobbying: Last Year's Attendees: March 2-5—Conflicts with SWAMC Manager Cassidy March 16-19—Week before Juneau Legislative Mayor Friend Reception Assemblymember Austerman March 23-26—Conflicts with Juneau Legislative Assemblymember Kaplan Reception Non Conflicted Dates: April 13-16;April 21-24;and April 29-May 1 Cost Last Year-$3,629 per attendee Current Assembly Budget Sample Travel Itineraries $33,500 $9,000(expenses to datel Direct Flight To DC $24,500 available Co: Flight Information son by Hops H LOU�.._._.� Mayor's Budget X40 AOC/5:15 pm ANC 605 pm 5640 $14,000 7$,pt<. 138 -C-E-PNC 11.15 Pm ORO 0311am V 324 ORD 11'.35 am DEA 22pn $400(expenses to datel 122101 Zslops 1 seats $13,600 available Multi-flights with overnight in Seattle OTHER UPCOMING TRAVEL - - - --- - - - - - February 24-26, Lobbying,Juneau Flight Information son by sops �� Loyast coa March 4-6,SWAMC Annual Conf.,Anchorage March 25-26, Legislative Rece tion,Juneau slistes 2822' ADO 8 10a ANC 91oam i S409 g P 120 1E-C ANC 1035am SEA 28pn sn 13m 11vE212 153aIl . . Coac Flight Information son or stops "I _: 4 o t-SEA 8'10am DCA 4.12 pm pay4Mfl a1 5112m I Nmi1021 Seats 5285 tb Direct flight Cost-$1269 Overnight in Seattle-$1323+hotel of$178 Return flight for both flights Coa Flight Information son ey 51ops .mvas1 tit 1219 DCA 543am DAD 6:45am $629 139 -t 4 ORD 945 ern MIC 1:23 Pm 49 MIC 330 pm ADO 4)5 pm 14114211 1257061 1532_0 Page 40 of 40 Washington DC Lobbying Dates and Attendees and Other Upcomin... KODIAK ISLAND BOROUGH/SCHOOL DISTRICT BOARD JOINT WORK SESSION /�i5 //,, Joint Work Session of:qfrIti.tvuoSSI 7-0f5 §fir Please PRINT your name Please PRINT yoqurname Y. t, S 4h c k^ .' µ r��rd r��lr �v �F 1„sA,.h. 47 114 < ' .F. \ ry' ' �r�N R