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2015-04-16 Regular Meeting Kodiak Island Borough Assembly Regular Meeting Agenda Thursday, April 16, 2015, 7:30 p.m., Assembly Chambers Page 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine and non- controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 5. *APPROVAL OF MINUTES 4 - 9 A. Regular Meeting of March 19, 2015. March 29, 2015 Regular Meeting Minutes.pdf 6. AWARDS AND PRESENTATIONS A. Employee of the Quarter Award B. Longevity Awards • Dave Conrad, Constructor Inspector/Engineer— Five Years • Sheila Smith, Secretary III —Ten Years • Jessica Kilborn, Deputy Clerk —Ten Years • Martha Barnett, Interpretive Specialist/Receptionist— Five Years • Eddie Arellano, Maintenance Mechanic— Five Years 10 - 17 C. Kodiak High School Project Update and Presentation on Change Order tgi Process. KHS Project Status Update.pdf 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments 8. COMMITTEE REPORTS Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free(855) 492-9202 and Local 486-3231. . Page 1 of 92 9. PUBLIC HEARING 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS 13. NEW BUSINESS 13.A. Contracts 18 - 25 1. Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. Contract No. FY2006-37A Clerk's Contract - Pdf 26 - 35 2. Approval of Amendment B to Contract No. FY2013-14 To Extend the Borough Manager's Contract and Provide Direction to Staff To Begin Advertising and Proceed Forward in Searching for a New Borough Manager. Borough Manager's Contract Amendment B - Pdf • 13.B. Resolutions • 13.C. Ordinances for Introduction 36 - 71 1. Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.35 Real Property Tax. Ordinance No. FY2015-10 Title 3 Amendments - Foreclosure- Pdf 72 - 78 2. Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax. Ordinance FY2015-11 - Pdf 13.D. Other Items 14. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) • 15. ASSEMBLY MEMBERS' COMMENTS 16. ADJOURNMENT 17. INFORMATIONAL MATERIALS (No Action Required) 17.A. Minutes of Other Meetings 79 - 82 1. Service Area No. 1 Board RM, March 10, 2015. Meeting Minutes of Other Boards.pdf Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers: Toll Free(855)492-9202 and Local 486-3231. Page 2 of 92 17.B. Reports 83 - 92 1. Manager Reports on Projects Including Change Orders, Other Projects, and Wilson Engineering Monthly Progress Report for November 2014 and January 2015. November 2014 - Change Order, Other Projects, and Wilson Enqineerinq.pdf January 2015- Change Order, Other Projects, and Wilson Enqineerinq.pdf Meeting broadcast live over radio station KMXT 100.1 FM. Citizens' Comments and Public Hearing Numbers:Toll Free(855)492-9202 and Local 486-3231. Page 3 of 92 AGENDA ITEM #5.A. KODIAK ISLAND BOROUGH Assembly Regular Meeting March 19, 2015 A regular meeting of the Kodiak Island Borough Assembly was held on March 19, 2015, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. Assembly Member Dan Rohrer provided the invocation. Mayor Friend led the Pledge of Allegiance. Present were Mayor Jerrol Friend, Assembly members Aaron Griffin, Chris Lynch, Frank Peterson, Dan Rohrer, and Rebecca Skinner. Also present were Borough Manager Bud Cassidy, Borough Assessor Bill Roberts, Borough Clerk Nova Javier, and Deputy Clerk Jessica Kilborn. GRIFFIN moved to excuse Assembly members Carol Austerman and Larry LeDoux who were absent due to personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA ROHRER moved to approve the agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS Monte Hawver, Brother Francis Shelter Executive Director, gave a presentation on homelessness in Kodiak. Borough Assessor Bill Roberts provided an Assessing Department update to the Assembly. CITIZENS' COMMENTS Kyle Crow thanked the Assembly for its efforts toward the community and expressed concerns on the status of the code revision project. Joann Shaker urged the Assembly to review the fireworks ordinance and consider prohibiting fireworks on Mill Bay beach. Kodiak Island Borough Assembly Regular Meeting Minutes March 19, 2015 Page 1 of 6 Regular Meeting of March 19, 2015. Page 4 of 92 AGENDA ITEM #5.A. Ken Reinke, Threshold Services Executive Director, provided an update on recycling efforts in the community, thanked local contributors for their support of Threshold, its crew, and its services, and he invited the Assembly to visit the remodeled facility. Dennis Summons commended Assembly members and Borough staff for being welcoming to the public. COMMITTEE REPORTS Assembly member Lynch reported on the Kodiak Fisheries Work Group (KFWG) meeting held on Wednesday, March 18. She announced that KFWG was organizing a forum for a community position on bycatch management and was soliciting for community comments which were due April 3. The next KFWG meeting was scheduled on Wednesday, April 8 at 8:30 a.m. in the Borough Conference Room. PUBLIC HEARING None. BOROUGH MANAGER'S REPORT Manager Cassidy reported on the following: • He, Mayor Friend, and members of the Assembly would be traveling to Juneau to attend the Legislative Reception and also meet with Lt. Governor Mallott and the Legislature on - various topics including fisheries bycatch, the Tustumena ferry replacement vessel, the decline in state revenue, and the State PERS program. • He provided an update on the Markham v. Board of Equalization legal case. Mr. Markham filed an appeal to the Supreme Court. • Manager Cassidy noted in Senate Bill 64 that Kodiak projects had been grandfathered in and would be eligible for the 70%reimbursement. MESSAGES FROM THE BOROUGH MAYOR Mayor Friend announced that he, members of the Assembly, and the Borough Manager would be traveling March 24 thru March 27 to attend the Kodiak Community Legislative Reception in Juneau. He expressed appreciation on behalf of the Borough and City to the following contributors who helped sponsor the event: Ouzinkie Native Corporation, Afognak Native Corporation, Koniag, Inc., Golden Alaska Excavating, Alaska Pacific Seafoods, International Seafoods of Alaska, Ocean Beauty Seafoods, Pacific Seafoods, Trident Seafoods, Sunaq Tribe —Kodiak Island Wildsource, and Mr. Tuck Bonney. UNFINISHED BUSINESS None. Kodiak Island Borough Assembly Regular Meeting Minutes March 19, 2015 Page 2 of 6 Regular Meeting of March 19, 2015. Page 5 of 92 AGENDA ITEM #5.A. NEW BUSINESS • Contracts • 1. Contract No. FY2015-25 Anton Larsen Bay Dock Installation. ROHRER moved to authorize the Manager to execute Contract No. FY2015-25 to Pacific Pile and Marine L.P. of Seattle, WA for the Anton Larsen Bay Dock Installation in an amount not to exceed$944,294. The contract was for installation of new pilings, floats, gangway, and bulkhead for a new dock at Anton Larsen Bay as shown in the documents produced by Jensen Yorba Lott (JYL) and PND Engineers. The existing dock was built in 1985 to support the Terror Lake Hydroelectric Project and was upgraded by the Borough in 1995 with new piles and other improvements. It was well past its useful life and had been in need of replacement for some time. In March 2014, JYL and Borough staff held public meetings in Kodiak, Port Lions, and Ouzinkie to present conceptual design options and accept public comments. The conceptual design options were also posted on the Borough website, along with a form to provide comments. Based on the comments received, JYL and PND designed a 120-foot long by 12-foot wide dock; the existing dock was 60-feet long by 10-feet wide. A contract for fabrication of the dock and gangway was awarded in December 2014, and fabrication was currently underway. An invitation to bid for the installation portion of the project • was issued on January 9, 2015, and bids were due and opened on February 24, 2015. Only one bid was received,from Pacific Pile and Marine in the amount of$944,294. The project was funded by a combination of state and federal grants. The Borough received a $2,000,000 Designated Legislative Grant and a $80,000 Denali Foundation grant, to which the Borough provided $20,000 in matching funds,for a total project budget of$2,100,000. A copy of the current budget was provided. It was hoped that the work would be completed in spring 2015, before heavy use of the dock commenced during the summer months. However, the bidders interested in the installation contract expressed concern that the timeline was too aggressive, therefore the installation was scheduled to start no earlier than September 15, 2015, with all in-water work to be completed by October 31, 2015. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Griffin, Lynch, Peterson, Rohrer, and Skinner. 2. Contract No. FY2015-27 Lake Orbin Culvert Replacement Project Phase II. LYNCH moved to authorize the Manager to execute Contract No. FY2015-27 to Brechan Construction, LLC of Kodiak, AK for the Lake Orbin Culvert Replacement Project Phase II in an amount not to exceed $86,250. Kodiak Island Borough Assembly Regular Meeting Minutes • March 19, 2015 Page 3 of 6 Regular Meeting of March 19, 2015. Page 6 of 92 AGENDA ITEM #5.A. The project was a collaborative effort between the Borough and Kodiak Soil and Water Conservation District(KSWCD). In July 2014, the Borough collaborated with KSWCD to replace a culvert leading from Lake Orbin to the Russian River in the Womens Bay Service Area, in order to aid fish passage. The current project was to replace an existing culvert from Lake Orbin at Bells Flats Road and an alternate bid to replace an existing culvert from Lake Orbin at Lake Orbin Drive,within the same service area. An Invitation to Bid was issued on February 20, 2015, and bids were due and opened on March 9, 2015. One bid was received and after reviewing the bid, staff determined that Brechan Construction, LLC of Kodiak was the lowest responsive bidder. A copy of the bid tabulation was provided. The proposed contract included the base bid and the alternate, both of which were within the project budget. KSWCD was providing the funds for the project and had received funding from multiple sources, primarily U.S. Fish and Wildlife Service. The work was scheduled for April 2015 depending on water levels,with all work to be completed by May 30, 2015. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Peterson, Rohrer, Skinner, and Griffin. Resolutions None. Ordinances for Introduction None. Other Items 1. Appointment to the Providence Kodiak Island Medical Community Advisory Board (Jerome Selby). LYNCH moved to voice non-objection to the appointment of Mr. Jerome Selby to the Providence Kodiak Medical Community Advisory Board for a term to expire December 2017. Per Contract No. 1997-07A: An advisory board meeting the requirements of 7AAC 13.030(a) will be appointed by Providence. One Assembly member shall be appointed by Providence as a full voting member of the advisory board, and Providence shall give the borough the opportunity for review and comment before appointments to the advisory board are made". Mr. Cecil Ranney resigned from the board and Providence presented Mr. Jerome Selby's name for consideration by the Borough Assembly for comment and approval. Per the contract provision cited above, the Assembly was given the opportunity to comment before the appointments to the advisory board were made. Kodiak Island Borough Assembly Regular Meeting Minutes March 19, 2015 Page 4 of 6 Regular Meeting of March 19, 2015. Page 7 of 92 AGENDA ITEM #5.A. ROLL CALL VOTE ON MOTION CARRIED UNANIMOULY: Peterson, Rohrer, Skinner, Griffin, and Lynch. • 2. Authorization for a Letter of Support Regarding the Services at the National Weather Service Office in Kodiak. PETERSON moved to authorize the Mayor to sign a letter of support regarding the services at the National Weather Service Office in Kodiak. There was an understanding that the National Weather Service (NWS) was considering reducing staff and hours at the Alaska Weather Service Office in Kodiak. A part of the plan included a complete closure between late afternoon and midnight at which time the Anchorage office would handle all the calls. The Assembly wished to address the proposed closure and, in addition, addressed the much needed upgrades needed at the Kodiak Office. It was reported that throughout the past 12 months approximately 18,000 calls had been received by the Kodiak Office from a wide range of users, including Raven Aviation. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Rohrer, Skinner, Griffin, Lynch, and Peterson. CITIZENS' COMMENTS • • None. ASSEMBLY MEMBERS'COMMENTS Assembly member Skinner spoke to the Fisheries forum scheduled in April and asked that the KFWG provide an opportunity for those who would be attending the North Pacific Fishery Management Council meetings during that week, to provide comment. Assembly member Rohrer inquired if an economic analysis funding source was budgeted for the KFWG. Assembly member and KFWG Co-Chairperson Lynch indicated that it had been approved at an Assembly/City Council joint work session. Assembly member Rohrer also requested that the Borough's financial reports be provided to the Assembly in a more concise format. He spoke to concerns regarding the Long Term Care Center bonds. Assembly member Lynch thanked Mr. Hawver for the report on homelessness in Kodiak, thanked Assessor Roberts for his report and the training opportunity he gave his staff. She thanked Mr. Reinke for the report on Threshold Services, and encouraged more non-profit organizations provide reports to the Assembly. She requested that the current fireworks ordinance be brought forward at an upcoming meeting for the Assembly to review. Kodiak Island Borough • Assembly Regular Meeting Minutes March 19, 2015 Page 5 of 6 Regular Meeting of March 19, 2015. Page 8 of 92 AGENDA ITEM #5.A. Announcements The Assembly work session scheduled for Thursday, March 26 was rescheduled to Tuesday, March 31 at 7:30 p.m. in the Borough Conference Room. The next regular meeting was scheduled on Thursday,April 2 at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT GRIFFIN moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Griffin, Lynch, Peterson, and Rohrer. The meeting adjourned at 8:50 p.m. KODIAK ISLAND BOROUGH ATTEST: Jerrol Friend, Mayor Nova M. Javier, MMC, Borough Clerk Approved on: • • Kodiak Island Borough Assembly Regular Meeting Minutes March 19,2015 Page 6 of 6 Regular Meeting of March 19, 2015. Page 9 of 92 0 a d Kodiak High School Addition and Renovation 0 a co pp! ! •,.i +JL7^ t -r ,. . 1 s ax A '' ° i gyp` � ,}' 1-11- � _.';-, ,� Kodiak Island Borough Assembly Regular Meeting m April 16, 2015 o N m AGENDA ITEM #6.C. \\.\__ I a r%ji f;#, , r j J I 71 7 Se •• . K 1 -- T - !II 1J A i .f 1 II II pi- o ivies , C!O , rte r' 1• a !9_� - o zr. '' : MI . ii _ , 71 --f. 11.1 - I: :N - �I o i, i c) Kodiak High School Project Update and Presentation on Change... Page 11 of 92 0 0. CT) CD co 0 Project Budget CD 0 * Description Budget. 0. CD CM by Consultant $ - , - „I 335 155 . a -c; Design $ 6,739,369 CD . t ..4.7 CcinititetiOn JL$ 66757 750 5 ■ 2 Equipment $ 2,000,000 (-) Administration FS I 300 0001 -- Art 667,578 Contingency $ t.14,679,157 12. - TOTAL 80,479,009 (D 0 o CD rri I> 2 x 0 n ti F Co I. S Project Budget 0 cx � � �� . m Description Budget SO. _ I ,_ Construction structtion Budge �_I CM by Consultant $ 1,335,155 Watterson y Design $ 6,739,369 Construction 62,257,750 i - - - - -- - ' Upper Mill Bay ° Construction - �[ .$ v 66;757,7501 Parking Lot $ 1,100,000 a.0 i Equipment $ 2,000,000 Permits $ 150,000 Administration [ $ 1,300,0001 Utilities $ 80,000 ttg m Art $ 667,578 Other $ 170,000 ■ Construction Contingency ry $ 1,679,157 Contingency ngenq y $ 3,000,000 a TOTAL $ 80,479,009 a o Z o o a 0 N m D2 t 4t PI n 0 0 n CT) F I CD S en Change Order Process 8. CD a ■ Project changes occur in two ways: either the KIB design team identifies a necessary change g due to code requirements or their ongoing review of design drawings, shop drawings, and CD contractor submittals, or the contractor identifies as issue with existing conditions or the design drawings that they feel will increase their cost and/or schedule. co ■ With both types of change the contractor will provide a detailed cost proposal which is carefully reviewed by the KIB project management team and design consultants for accuracy 0 o in labor,material,equipment rates,and compliance with the contract documents. ■0 These costs are often negotiated and if discrepancies are found the cost is returned to the CO contractor for corrections. ■ If the cost or scope of work is deemed either part of the contract or unnecessary,the cost is not approved. mCD If the cost is valid and reasonable the contractor is given a change order that modifies the ycontract total. m D 3 0 0 0. x Change Value Summary Owner Requested Changes 156 Total Submitted: $1409304 Contractor Requested Changes 160 a. Negotiated H Total Changes 316 $202,563 to 12% • Changes Not Approved 19 Value $543,809 Changes Reduced 90 Value $202,563 Not Total Value of-Reduced/Not A roved Chan es $746,372 a 1'u� PP g Approved $863,113g1,1 $543,809 n3 34% -- - Approved Changes 297 Value $863,132 -v C) m o 2 o 0 n CD m D4 0) o� p 0 a a d co Contract / Contingency Summary CD c Watterson Contract $62,257,750 Ft; Approved Changes to Date $863,132 0. Change in Contract 1.38% Typical for Similar Projects 7.50% ' a Original Construction Contingency $3,000,000 Approved Changes to Date $863,132 Current Construction Contingency $2,136,868 %-of Contingency Used 29% % of Project Complete 77% m N ,. O m co a n m D5 AGENDA ITEM #6.C. Kodiak High School Project Update and Presentation on Change... Page 17 of 92 AGENDA ITEM #13.A.1. KODIAK ISLAND BOROUGH a$_. - AGENDA STATEMENT eJ e��p:f'} APRIL 16, 2015 •: t'= ASSEMBLY REGULAR MEETING TITLE: Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. ORIGINATOR: Dan Rohrer • • FISCAL IMPACT: FUNDS AVAILABLE: • Account Number: Amount Budgeted: SUMMARY STATEMENT: • A summary of the negotiation is reflected in the attached memo from Deputy Presiding Officer Dan Rohrer. . The Kodiak Island Borough Assembly employed the services of the Kodiak Island Borough Clerk on April 27, 2006.The Clerk is an at-will employee who serves at the pleasure of the Assembly. • With the recent completion and adoption of the FoX Lawson Study and during the 2014 . : Clerk's evaluation, it was agreed on by the Clerk and the Assembly to renegotiate the existing contract. A subcommittee of the Assembly composing of Assembly members Rohrer, Lynch and Griffin was formed. The negotiation occurred on February 23, 2015. RECOMMENDED MOTION: Move to approve Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. • • Kodiak Island Borough Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 18 of 92 AGENDA ITEM #13.A.1. Date:April 5,2015 Memo To: Mayor Friend and Assembly Members From: Daniel Rohrer,Deputy Presiding Officer RE: Borough Clerk's Contract Renegotiation Summary The purpose of this memo is to provide the history of Assembly Members Rohrer,Lynch,and Griffin's negotiation with the Borough Clerk in regards to changes to the Borough Clerk's contract. The Borough Clerk is an at-will employee who serves at the pleasure of the Assembly and has an individual contract with the Borough Assembly for services. After the Fox Lawson study was completed,the Borough Clerk's salary package was adjusted upward. At that time,the Clerk expressed concerned that the contract needed to be reviewed and that some components of the study pushed the Clerk's wage above comparable positions in the Borough.During the 2014 Clerk's evaluation,it was agreed on by the Clerk and Assembly to renegotiate the existing contract.A subcommittee of Assembly members was formed to renegotiate the Clerk's contract.Considering this background information,the subcommittee met with the Clerk on Monday,February 23,2015 to review the contract and look at recommendations to present to the full Assembly for approval. One underlying theme you will see is the goal of bringing the Clerk's contract more in line with the Manager's contract and/or the Personnel.Manual. Additionally,you will see areas of give and lake. For ease of review,I will start at the beginning of the contract and reference recommended changes as they arise and not in the order of reductions or increases. 1. Section 2.A. Termination of Employment and Severance Pay a. Changed severance pay from two months to three months'salary. This change was a move towards consistency with the Manager's contract. 2. Section 4. Salary and Benefits. a. Clerk's pay adjusted from Step Q down to a Step M(see attached Salary Schedules)and removed the provision for automatic step increases from the contract. •The Clerk received a one-time Special Merit increase in April of 2009. The current contract allows for annual step increases regardless of the level. All other employees'salaries stop at Step M. Over time;the Clerk's contract raised the wage to a Step Q which actually takes the contract off of the scale. •The recommendation is to bring the Clerk's salary more in line with the salary range reflected in Fox Lawson Study. b. Annual leave can be accrued up to 800 hours and can be cashed out at twice the level of the stated levels in the Personnel Manual as long as at least 80 hours of annual leave are used and 80 hours are left on the books at all times. Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 19 of 92 AGENDA ITEM #13.A.1. c. Longevity pay is added back into the list of additional benefits which includes sick leave, health insurance,life insurance,and contributions to the Alaska Public Employees Retirement System. This will create consistency with the Personnel Manual. 3. It was agreed upon during the negotiation that the effective date for these changes is on the Clerk's anniversary date of June 3,2015. These changes reflect a significant reduction in the Clerk's wages with minor increases to fringe benefits like severance pay and accrued leave. This reduction is not intended to reflect negatively on the Clerk's job performance but in fact reflects the integrity of our Clerk and the desire to not be paid above market ranges for the job performed. I appreciate our Clerk's willingness to recognize this issue and more importantly her willingness to remedy the situation. yectfully, rife— Daniel Rohrer Deputy Presiding Officer Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 20 of 92 AGENDA ITEM #13.A.1. CONTRACT NO. FY 2006-37A AMENDING CONTRACT NO. FY2006-37 EMPLOYMENT AGREEMENT BETWEEN THE KODIAK ISLAND BOROUGH AND NOVA M. JAVIER, MMC, BOROUGH CLERK THIS AGREEMENT is made and entered into this th of April,2015,between the KODIAK ISLAND BOROUGH(hereinafter BOROUGH)and Nova M.Javier,MMC, (hereinafter CLERK). WHEREAS, the BOROUGH employed the services of Nova M. Javier, MMC, as CLERK of the KODIAK ISLAND BOROUGH on June 3,2006;and WHEREAS, the BOROUGH and CLERK desire to amend certain procedures, benefits, and requirements regarding the employment of CLERK by BOROUGH;and WHEREAS, Assembly members Griffin, Lynch, and Rohrer met with the CLERK on Monday,February 23,2015,and renegotiated this contract. NOW,THEREFORE,BOROUGH and CLERK agree to the following terms and conditions: Section 1.Duties and Nature of Employment A) BOROUGH hereby agrees to employ CLERK, and CLERK agrees to be employed by BOROUGH, in the position of Borough Clerk.CLERK is an at-will employee who serves at the pleasure of the Borough Assembly. CLERK is an administrative and/or executive • employee of the legislative branch of borough government, and therefore CLERK is not entitled to receive overtime compensation. B) The CLERK shall perform all duties and functions assigned to CLERK by law,and such other duties and functions as the Borough Assembly shall from time to time prescribe. C) The CLERK is an exempt BOROUGH employee and shall be responsible to the BOROUGH MANAGER in all matters pertaining to established Borough Personnel Policies and Procedures, Rules, and Regulations. This does not change the current reporting structure or any of the CLERKS current duties. Section 2.Termination of Employment and Severance Pay A) The Borough Assembly may terminate the CLERK at any time,for any reason or for no reason,by delivering to the Clerk written notice of termination.In the event of termination other than for good cause, the BOROUGH shall pay to CLERK a severance pay an amount equal to twe three months'salary. However,if the CLERK is terminated for good cause, BOROUGH shall not pay severance pay to CLERK. For this purpose the term "good cause"shall mean: 1) A willful breach,disregard,or habitual neglect of duties assigned to the Clerk by law or by the Assembly. 2) Any conduct of Clerk bringing public embarrassment or ridicule to the Borough. 3) Any misconduct of Clerk involving an act of moral turpitude or illegality. Employment Agreement—Borough Clerk Page 1 of 4 Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 21 of 92 ■ AGENDA ITEM #13.A.1. B) CLERK may resign her employment as Borough Clerk at any time,for any reason or for no reason, by delivering to the Borough Assembly notice of resignation at least thirty days prior to the effective date of resignation. If the CLERK resigns, the BOROUGH shall not pay severance pay to the CLERK. Section 3 Conditions of Employment CLERK shall receive the salary and benefits, and shall work under the terms and conditions, specified below during the period from Juno 3,2006 2015, until either CLERK or BOROUGH want to renegotiate contract, unless CLERK'S employment is terminated during that period as provided in Section 2 above. Section 4.Salary and Benefits BOROUGH agrees to pay CLERK for her services rendered pursuant hereto an annual salary of range 23.0, ctcp C, E81, Step M in accordance with the Kodiak Island Borough Personnel Rules and Regulations, payable in installments at the same time as other employees of the BOROUGH are paid. CLERK'S performance shall be reviewed every year after the effective date of this agreement. CLERK'S salary shall increase according to the provisions established for regular Borough employees by the Personnel Rules and Regulations. • -_ •• .- , ._ _. _ G4eck-desigaatiea-Upon satisfactory review, the Assembly may increase said salary and/or other benefits of the CLERK in such amounts and to such an extent as the • Borough Assembly may determine is applicable. Annual leave can be accrued from year to year with a maximum accrual limit of one hundred (100)days(800 hours).The CLERK may cash-in up to 160 hours of her annual leave in excess of 80 hours. Such cash-out shall be permitted once in a calendar year. In the event of a serious emergency,the CLERK may cash-out any accrued annual leave in excess of 80 hours.The CLERK must take at least eight(80) hours of leave annually. Annual leave use of more than five (5) days shall be noticed to the Assembly at least two(2)weeks in advance,except in an emergency. Longevity pay, sick leave, health insurance, ife insurance, and contributions to the Alaska Public Employees Retirement System will be provided to the CLERK in accordance with the Kodiak Island Borough Personnel Rules and Regulations as provided for all other employees. Upon separation, accrued annual leave shall be paid to CLERK h accordance with the Kodiak Island Borough Personnel Rules and Regulations. Section 55.Duesand Subscriptions BOROUGH agrees to budget and to pay the dues of CLERK for membership in professional and civic organizations and subscriptions of CLERK necessary for her continuation and full participation in national, state, and local associations and organizations necessary and desirable for her continued professional participation, growth, and advancement, and for the good of the BOROUGH. • Employment Agreement—Borough Clerk Page 2 of 4 Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... ' Page 22 of 92 AGENDA ITEM #13.A.1. Section 6.Professional Development A) BOROUGH hereby agrees to budget and to pay the travel and subsistence expenses of CLERK for professional and official travel, meetings, and occasions adequate to continue the professional development of CLERK and to adequately pursue necessary official and other functions for BOROUGH, including but not united to, the htemational hstitute of Municipal Clerks, the Alaska Municipal League, and the Alaska Association of Municipal Clerks, and any other meeting which the Assembly shall designate. C) BOROUGH also agrees to budget and to pay for the travel and subsistence expenses of CLERK for short courses, institutes, and seminars that are necessary for her professional development and for the good of BOROUGH as approved by Assembly. 0) BOROUGH also agrees to budget and to pay for reimbursement of 100% of the tuition expense, books,and lab fees not to exceed 51500 per fiscal year towards the completion of the CLERK'S associate degree. E) CLERK shall not be subjected to Section 903 Special Training Agreement regarding the forfeiture of accumulated leave and/or salary I terminated employment prior to working one year after completion of an approved training program (defined as any training or schooling for which the Borough pays$1,000 or more including cost of the training program plus travel). Section 7 Indemnification BOROUGH agrees to defend, save and hold harmless, and indemnify CLERK against any tort claim, professional ability claim, or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission by CLERK arising out of the course and scope of her employment; provided, however, that the aforementioned obligation of the BOROUGH shall not extend to claims based on the following acts of misconduct: A) A willful breach, disregard or habitual neglect of duties requested of CLERK by the Borough Assembly formally communicated to CLERK or required to be performed by CLERK hereunder or under the ordinances of the Kodiak Island Borough and the lews of the United States and the State of Alaska;or B) My conduct of the CLERK bringing public embarrassment or ridicule to the Borough; C) My misconduct of the CLERK involving an act of moral turpitude or of illegality. BOROUGH will defend, compromise or settle any such claim or suit and pay the amount of any settlement orjudgment rendered thereon. Employment Agreement—Borough Clerk Page 3 of 4 Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 23 of 92 AGENDA ITEM #13.A.1. • Section 8.General Provisions A) The text herein shall constitute the entire Agreement between the parties. B) This Agreement shall be binding upon and inure to the benefit of the heirs-at-law and executors of CLERK. C) This Agreement, subject to the provisions of Section 2 hereof, shall become effective commencing June 3, 2896 2015, and extend until either the CLERK or ASSEMBLY wants to renegotiate the contract. D) f any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF the parties have executed this Agreement on this th day of April, 2015. KODIAK ISLAND BOROUGH(BOROUGH) CLERK Jerrol Friend,Borough Mayor Nova M.Javier,MMC Date: Date: Employment Agreement—Borough Clerk Page 4 of 4 Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodi... Page 24 of 92 C) 0 J 0 2 0 11 N o )-s w Kodiak Island Borough Schedule at Pay Rates Salary Study • • 0 Mar INNOiS ru 105% s [ 1 u e 1 0 X 0 • 0 O RI Acsi -was 6.'N a 763 914]6 05. 2 Aar* 101.16 =AU IOa.I21 ILIAC 11643 rim IR.lU 110 LUAU lain trait—) a Mvlr ono or carr 44tIII 0.7174 45.14 113737 Or 52413 Or SLUM 11am ern. a1105 4641 Ala6 OY7 n O J_ 02 0 Z O The amendment proposes to reduce the current payrate of the Clerk from Step 0 to Step 24. This is a reduction of 518.473 yearly pay(from 5143.692/per year to 5125.219)or a reduction of 58.89 of the hourly rate. O 0 - W w V 0 O 6 C) m 0 Ore We nosey l.mll m N 3 AGENDA ITEM #13.A.2. KODIAK ISLAND BOROUGH AGENDA STATEMENT tyt «°e /J's�• APRIL 16,2015 '' g' J; ASSEMBLY REGULAR MEETING TITLE: Approval of Amendment B to Contract No. FY2013-14 To Extend the Borough Manager's Contract and Provide Direction to Staff To Begin Advertising and Proceed Forward in Searching for a New Borough Manager. ORIGINATOR: Bud Cassidy FISCAL IMPACT: FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: The Managers three year employment contract expires January 16,2016. During his two year evaluation held on April 2,2015, he announced that he would not seek another 3 year term and provided the Assembly with 9 months'notice of his retirement.The Manager also communicated interest in a short term extension of his employment contract beyond the January 16, 2016 date if needed, in an effort to provide overlap and transition to the new incoming manager. Such an extension; however,would not exceed June 30, 2016.Should there be interest in an extension of the manager's contract beyond the January 16,2016 date, it is proposed that this extension,at a minimum,continue until April 30,201.6. Further extensions, if necessary,will be at the will of the Assembly and continue on a month to month basis for the months of May and June 2016. Should the managers contract be extended beyond the January 16,2016 date, it will be done so with no increase in pay and an accumulation of sick and vacation leave in accordance with the borough personnel manual.With the departure of the Manager, it is important to begin advertising and the formal search for his replacement. RECOMMENDED MOTION: Move to approve amendment B to Contract No. FY2013-14 extending the Borough Manager's Contract to May 30, 2016 and also provide direction to staff to begin advertising and proceed forward in searching for a new Borough Manager. Kodiak Island Borough Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 26 of 92 AGENDA ITEM #13.A.2. Q,ait ool ti)o. #\10,2013-14 EMPLOYMENT CONTRACT THIS AGREEMENT is made and entered into this 17th day of January, 2013, between the Kodiak Island Borough Assembly(hereinafter Borough)and Charles E. 'Bud'Cassidy, Jr., (hereinafter Manager). WHEREAS, Borough wishes to employ the services of Charles E.'Bud'Cassidy,Jr.,as Manager of the Kodiak Island Borough;and WHEREAS, Borough and Manager desire to provide for certain procedures, benefits, and requirements regarding the employment of Manager by Borough;and WHEREAS,Manager wishes to accept employment as Manager of said Borough;and NOW,THEREFORE,Borough and Manager agree to the following terms and conditions: Section 1: Duties and Nature of Employment A. Borough hereby agrees to employ Manager, and Manager agrees to be employed by Borough,in the position of Borough Manager.Manager is an at-will employee who serves at the pleasure of the Borough Assembly. Manager, as an administrative and/or executive employee of the legislative branch of Borough government, is entitled to all fringe benefits provided to any other Borough administrative and/or executive employee, and, therefore, Manager is not entitled to receive overtime compensation. B. Manager shall perform all duties and functions assigned to Manager by law,and such other legally permissible and proper duties and functions as the Borough Assembly shall from time to time prescribe. Section 2:Contract Term and Notice Requirements. While this is an at-will employment contract, both parties anticipate that it shall be in effect for three (3)years, January 17, 2013, through January 16, 2016,with a ninety(90)day notice, by either party,to renew or not renew said contract by mutual consent. Borough Manager Employment Contract Page 1 of 5 Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 27 of 92 AGENDA ITEM #13.A.2. Section 3: Salary and Benefits. A. Borough agrees to pay Manager for his services, payable in installments at the same time as other employees of the Borough, at the initial rate of One Hundred Twenty- Five and 00/100 Dollars($125,000)annually. B. Manager's performance shall be reviewed, in executive session, six (6) months after the effective date of the agreement and the Manager's salary will be adjusted to One Hundred Thirty Thousand and 00/100 Dollars ($130,000) annually upon mutual review and determination of satisfactory job performance. C. Manager's performance shall be reviewed, in executive session, twelve (12) months after the effective date of the agreement and the Manager's annual salary will be adjusted to One Hundred Thirty-Five Thousand and 00/100 Dollars($135,000)annually upon mutual review and determination of satisfactory job performance. D. Manager's performance shall be reviewed, in executive session, twenty-four (24) months after the effective date of the agreement and the Manager's annual salary will be adjusted to One Hundred Forty Thousand and 00/100 Dollars ($140,000)annually upon mutual review and determination of satisfactory job performance. E. Subsequent performance reviews shall take place in executive session at the request of the Assembly or Manager, but no less than annually on or before the Manager's anniversary date. • F. Manager shall accrue annual leave of thirty(30)days annually with thirty(30)days provided in advance upon the start date of this contract and each anniversary date for the life of the contract. Annual leave can be accrued from year to year with a maximum accrual limit of one hundred(100)days(800 hours)and no limit on cash out but the Manager must take at least eighty(80)hours of leave annually. Annual leave use of more than five(5)days shall be noticed to the assembly at least two(2)weeks in advance,except in an emergency. G. Sick leave, health insurance, life insurance, disability insurance, workers' compensation insurance,jury duty, holidays,and contributions to the Alaska Public Employees Retirement System will be provided to Manager in accordance with the Kodiak Island Borough Personnel Manual, as provided for all other employees except that the Borough shall pay 100%of the cost of health insurance for Manager and his family. Borough will pay for annual physical if not covered by health insurance. H. Except to the extent specifically referenced to in this Agreement, provisions of the Kodiak Island Borough Personnel Manual are not applicable to Manager's personnel status as a Borough employee. I. Borough will provide an automobile for Manager's business use only, including commuting to/from work. Borough will provide gas,oil,maintenance,and liability insurance. Borough Manager Employment Contract Page 2 of 5 Approval of Amendment B to Contract No. FY2013-14 To Extend... Page 28 of 92 AGENDA ITEM #13.A.2. Section 4:Separation of Employment and Severance Pay. A. The Borough Assembly may terminate Manager at any time, for any reason or for no reason, by delivering to Manager written notice of termination. 1. Termination for other than good cause: a. In the event of termination other than for good cause, Borough shall pay to Manager as severance pay an amount equal to six (6) month's salary plus one additional month for each year of service to the Borough as Manager. Manager shall also be compensated for all accrued annual leave. In lieu of severance pay in the event of termination for other than good cause, Manager may exercise the option provided in paragraph 4.A.1.b immediately below. b. In the event of termination for other than good cause during the three(3)year term of this contract,unless otherwise agreed,Manager retains the right to fill any available position within the borough for which he is qualified. 2. Termination for good cause: a. In the event Manager is terminated for good cause, Borough shall not pay severance pay to Manager; however, Manager shall be compensated for all accrued annual leave. b. In the event of termination of Manager for good cause during the three (3) year term of this contract, Manager retains the right to fill any available position within the Borough for which he is qualified. B. Manager may voluntarily resign his employment as Borough Manager at any time, for any reason or for no reason,by delivering to the Borough Assembly notice of resignation at least (90) days prior to the effective date of resignation, unless the parties agree otherwise. If Manager voluntarily resigns, Borough will not be obligated to pay severance pay to Manager.Manager retains the right to fill any available position within the Borough for which he is qualified. C. For the purpose of this section,the term'good cause'shall mean: 1. A willful breach,disregard,or gross neglect of the duties assigned to the Manager by law or by the Borough Assembly, or incompetence,which is defined as the inability or the intentional failure to perform the manager's duties in a satisfactory manner. However, termination for incompetence will require written notice and reasonable time allowed,along with appropriate resources provided,to affect a remedy. 2. Any conduct of Manager bringing public embarrassment or ridicule to the Borough. 3. Any conduct of Manager involving a conviction for any act of moral turpitude or illegality defined as a felony or a misdemeanor that tends to reflect dishonesty. Borough Manager Employment Contract Page 3 of 5 Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 29 of 92 AGENDA ITEM #13.A.2. Section 5:Conditions of Employment. Manager shall receive the salary and benefits, and shall work under the terms and conditions, specified in this document during the three year term of this contract with a ninety (90) day notice by either party to renew or not renew by mutual consent after that time. Section 6:Dues and Subscriptions. Borough agrees to budget and to pay the dues of Manager for membership in professional and civic organizations and subscriptions of Manager necessary for his continuation and full participation in national, state, and local associations and organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the Borough,as budgeted/approved by the Borough Assembly. Section 7:Professional Development. A. Borough hereby agrees to budget and pay the travel and subsistence expenses of Manager for professional and official travel, meetings, and occasions adequate to continue the professional development of Manager and to adequately pursue necessary official and other functions for Borough, including, but not limited to, the Alaska Municipal. Managers Association(AMMA)and the International City/County Management Association(ICMA). B. Manager,while traveling out of town on official business, will be reimbursed for reasonable expenses by Borough. Borough will provide for and/or reimburse Manager for transportation costs and other costs incidental to such travel, and of a normal.and necessary nature.Such • expenses would include: hotel rooms, auto rental, taxi fare, and telephone. This section applies to short courses, institutes, and seminars that are necessary for his professional development and for the good of Borough, as budgeted by the Borough Assembly along with all other Borough related travel. Section 8:Indemnification. A. Borough agrees to defend,save and hold harmless,and indemnify Manager against any tort claim, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission by Manager arising out of the course and scope of his employment; provided, however, that the aforementioned obligation of Borough shall not extend to claims based on the following acts of misconduct: 1. A willful breach, disregard, or gross neglect of duties requested of Manager by the Borough Assembly formally communicated to Manager or required to be performed by Manager hereunder or under the ordinances of the Kodiak Island Borough and the laws of the United States of America and the State of Alaska; 2. Any conduct of Manager bringing public embarrassment or ridicule to Borough;or 3. Any conduct of Manager involving a conviction for any act of moral turpitude or illegality defined as any felony involving moral turpitude or a crime, which reflects dishonesty. Borough Manager Employment Contract Page 4 of 5 Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 30 of 92 AGENDA ITEM #13.A.2. B. Borough will defend, compromise, or settle any such claim or suit and pay the amount of settlement or judgment rendered thereon. Section 9:General Provisions. A. This Agreement shall constitute the entire agreement between the parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs-at-law and executors of Manager. C. This Agreement shall be in effect for three (3) years or until Manager resigns or is terminated under the provisions of Section 4,above. D. If any provision, or any portion thereof, contained in this agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this agreement or any portion thereof,shall be deemed severable, shall not be affected,and shall remain in full force and effect. Section 10: No Reduction of Benefits;Good Faith and Fair Dealing. A. Borough shall not at any time during the term of employment with this agreement reduce the salary,compensation,or other financial benefits to Manager. B. All contract provisions shall be subject to good faith and fair dealing. IN WITNESS WHEREOF,the parties have executed this Agreement effective the 17"day of January,2013. KODIAK ISLAND BOROUGH BOROUGH MANAGER JEROME SELBY,Borough M or Charles E."Bud"Cassidy,Jr. Dated k/f`/-q ,9�/7� ,2013 Date: /!ag �r,1,2013 •92-44-4-4-"--"N O CIS/CA 4 se L1 Borough Manager Employment Contract Page 5 of 5 Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 31 of 92 AGENDA ITEM #13.A.2. AMENDMENT NO.1 AMENDMENT NO.1 to the EMPLOYMENT CONTRACT between the Kodiak Island Borough and Charles E."Bud"Cassidy,Jr.entered into on the 17°day of January,2013 is hereby amended as follows: WHEREAS, the KODIAK ISLAND BOROUGH with offices at Kodiak, Alaska, hereinafter called "Borough,"and CHARLES E. CASSIDY JR.who resides at Kodiak,Alaska,hereinafter called"Manager" entered into an EMPLOYMENT CONTRACT for services as the Borough Manager of the Kodiak Island Borough on January 17,2013;and WHEREAS,the continuation of the existing EMPLOYMENT CONTRACT is desirous to both the Borough and Manager. NOW, THEREFORE, in consideration of mutual exchange of the promises of the parties, the parties agree to amend the EMPLOYMENT CONTRACT to reflect an increase in salary approved at the regular meeting of the Kodiak Island Borough Assembly on July 17,2014.Said changes are as follows: • Section 3.Salary and Benefits Section 3C.of the EMPLOYMENT CONTRACT is hereby amended to increase Manager's annual salary to$155,000 retroactive to January 1,2014. Section 3D.of the EMPLOYMENT CONTRACT is hereby deleted. EXCEPT AS PROVIDED HEREIN,all other terms and conditions of the AGREEMENT dated January 17,2013 remain the same. KODIAK ISLAND BOROUGH(BOROUGH) BOROUGH MANAGER(MANGER) of Friend Charles E.Cassidy,Jr. Mayor Manager // Date: //7/,5' Date: /Au/7s • • Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 32 of 92 AGENDA ITEM #13.A.2. AMENDMENT B TO CONTRACT NO.FY2013-14 AMENDMENT'B'to the EMPLOYMENT CONTRACT(Borough Contract FY2013-14)between the Kodiak Island Borough and Charles E."Bud"Cassidy,Jr.dated the 17th day of January,2013 is hereby amended as follows: WHEREAS,the KODIAK ISLAND BOROUGH with offices at Kodiak,Alaska,hereinafter called "Borough;and CHARLES E.CASSIDY JR who resides at Kodiak,Alaska,hereinafter called"Manager" entered into an EMPLOYMENT CONTRACT for services as the Borough Manager of the Kodiak Island Borough on January 17,2013;and WHEREAS,the continuation of the existing EMPLOYMENT CONTRACT is desirous to both the Borough and Manager. NOW,THEREFORE,in consideration of mutual exchange of the promises of the parties,the parties agree to amend the EMPLOYMENT CONTRACT to reflect an increase in contract term and accrual of annual leave.approved at the Regular Meeting of the Kodiak Island Borough's on April 16,2015.Said changes are as follows: Section 2:Contract Term and Notice Requirements Section 2 of the EMPLOYMENT CONTRACT is hereby amended to extend the term of this contract from January 16,2016 through April 30,2016 and thereafter may be extended on a month to month base for the months of May 2016 and June 2016 based on the discretion of the Borough Assemlby. Section 3:Salary and Benefits Section 3 of the EMPLOYEMENT CONTRACT is hereby amended to change the first sentence of section F to read: F.Manager shall accrue annual leave in the manner consistent with Chapter 7-LEAVE,Section 701 of the KIB Personnel Code. • EXCEPT AS PROVIDED HEREIN,all other terms and conditions of the AGREEMENT dated January 17,2013 remain the same. KODIAK ISLAND BOROUGH(BOROUGH) BOROUGH MANAGER(MANAGER) Jerrol Friend Charles E.Cassidy,Jr. Mayor Manager Date: Date: Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 33 of 92 AGENDA ITEM #13.A.2. • • � t¢t Kodiak Island Borough •,45 iiqq Office of the Borough Clerk J'A' V,'v�-,1 710 Mill Bay Road Kodiak,Alaska 99615 �. • - Phone(907)486-9323 Fax(907)486-9392 i DATE: April 7,2015 MEMO TO: Mayor and Assembly - FROM: Nova Javier,MMC,Borough Clerk �M( RE: Hiring Manager Process This is to provide a historical background regarding the process that was followed in 2012 when the Assembly a borough manager. APRIL MANAGER HIRING PROCESS IN 2012 6 MONTHS TIMEFRAME April 12,2012 Advertised in the following: D Kodiak Job Service • Kodiak Daily Mirror D Anchorage Daily News • Alaska Municipal League/Fax Alert > National Association of Counties • ICMA International City/County Management Association > Jobs Available • May 25,2012 Deadline to submit applications(seven weeks) May 29,2012 Initial Screening of applications June 4,2012 Recruitment packets/Rating sheets distributed to Assembly June 11,2012 Full review of finalists/narrow numbers of finalists for interview June 15,2012 Follow up questionnaire sent out to first round/cut of applicants June 26,2012 Answers returned by first round/cut of applicants June 28,29,and July 2 Skype interviews conducted _ _... _ T-_---. u....u.. • Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 34 of 92 AGENDA ITEM #13.A.2. July 3,2012 Skype interviews rated July 19,2012 Decided on finalists and Interview schedules July 19 to August 7 Background Checks September 12-14 Flew in six applicants to Kodiak for final interview,provided Airfare,Hotel,and Per Diem Mayor Selby and Assembly member Stephens negotiated with the successful applicant October 18,2012 Scheduled the approval of the Manager's Contract on the agenda with a start date of December 18.Candidate retracted his application and direction was given to clerk to reopen recruitment for the Borough Manager's position. MANAGER HIRING PROCESS IN 2012 3 MONTHS T1MEFRAME October 25 Advertised in the following: > Kodiak Job Service • Kodiak Daily Mirror • Anchorage Daily News Alaska Municipal League/Fax Alert National Association of Counties • ICMA International City/County Management Association > Jobs Available November 21 Deadline to submit applications,10 appBcations received December 13,2012 During a special meeting of the Assembly,direction was given to start negotiations with the Bud Cassidy as the new Borough Manager. January 17,2013 Approval of Contract No.FY2013-14 with Bud Cassidy • Approval of Amendment B to Contract No. FY2013-14 To Extend ... Page 35 of 92 AGENDA ITEM #13.C.1. KODIAK ISLAND BOROUGH AGENDA STATEMENT 14,s APRIL 16, 2015 Alb,a ?",;1 j ASSEMBLY REGULAR MEETING • TITLE: Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.35 Real Property Tax. ORIGINATOR: Dora Cross FISCAL IMPACT: No FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: This ordinance will align foreclosure sections of borough code with state statues and repeal others in favor of established state statue processes. It will also clarify delivery requirements for tax payments. This ordinance will also clarify the definition of mobile home, and, when the mobile home resides on rented property, it will assign the identity of responsible parties for ownership updates to the borough in order to facilitate tax collections. It also reaffirms that delinquent taxes on mobile homes can be collected by a personal action suit against the owner. This ordinance will specify any Board of Equilization appeals are to be filed in the third judicial district. This ordinance will also update any staff titles mentioned in code sections 3.35.010-3.35.160 (i.e.Treasurer to Finance Director). RECOMMENDED MOTION: Move to adopt Ordinance No. FY2015-10 in first reading to advance to public hearing at the next regular meeting of the Assembly. Kodiak Island Borough . . Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 36 of 92 AGENDA ITEM #13.C.1. Introduced by: Borough Manager Requested by: Finance Director 1 Dratted by: Revenue Accountant 2 Introduced: 04116/2015 Public Hearing: 3 Adopted: 4 5 KODIAK ISLAND BOROUGH. 6 ORDINANCE NO. FY2015-10 7 8 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 9 BOROUGH AMENDING VARIOUS SECTIONS IN TITLE 3 REVENUE 10 AND FINANCE CHAPTER 3.35 REAL PROPERTY TAX 11 12 WHEREAS, the Borough assesses, taxes and forecloses on property pursuant to 13 borough code and state statute, and this ordinance will align this section of borough code 14 with the state;and 15 16 WHEREAS, it would clarify the definition of mobile home and the responsibility of 17 persons subject to taxation;and 18 19 WHEREAS, it would assign the identity of the party responsible for annual ownership 20 updates of mobile homes residing on rented property;and 21 22 WHEREAS, it would clarify the Judicial District to which Board of Equalization appeals 23 are to be made;and 24 25 WHEREAS, it would clarify the delivery requirements for timely and delinquent tax 26 payments;and 27 28 WHEREAS, it would repeal foreclosure codes in favor of establishing the foreclosure 29 process as defined by Alaska State Statutes. 30 31 NOW,THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 32 BOROUGH that: 33 34 Section 1: This ordinance is of a general and permanent nature and shall become a 35 part of the Kodiak Island Borough Code of Ordinances. 36 37 Section 2: That the list of sections set forth at Title 3 Revenue and Finance, Chapter 38 3.35 Real Property Tax,is hereby amended as follows: 39 40 CHAPTER 3.35 41 REAL PROPERTY TAX 42 Sections: 43 3.35.010 State law adopted NO CHANGES 44 3.35.020 Property subject to tax. 45 3.35.030 Real and personal property exempted from taxation NO CHANGES 46 3.35.040 Method of assessment. 47 3.35.050 Board of equalization. Kodiak Island Borough.Alaska Ordinance No.FY2015-10 Page 1 0117 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 37 of 92 AGENDA ITEM #13.C.1. 48 3.35.060 Final and supplemental assessment rolls. NO CHANGES 49 3.35.070 Addresses—Responsibility of persons subject to taxation. 50 3.35.080 Repealed. NO CHANGES 51 3.35.085 Method of determining the assessed value of property that qualifies for a 52 low-income housing tax credit under 26 USC 42. NO CHANGES 53 3.35.090 Property tax billing. 54 3.35.100 Correction of errors. 55 3.35.110 City taxes. NO CHANGES 56 3.35.120 Tax due dates and delinquency. 57 3.35.130 Exceptions. NO CHANGES 58 3.35.140 Late payments—Penalty and interest. 59 3.35.150 Enforcement of tax liens on real property. 60 3.35.160 . Foreclosure. 61 3.35.170 Publication of the foreclosure list. 64 ..-:. .. . : .: : : :. :.. : : ':• •: :: . 65 . 66 3.36.220 Enforcement by personal action. 67 e -- :-. - : :.- •. 68 3.36.240 Effect of redemption. 70 71 72 Section 3: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 73 3.35.020 Property subject to tax is hereby amended as follows: 74 75 3.35.020 Property subject to tax 76 A. All real and personal property situated within the borough that is not exempt under the 77 laws of the State of Alaska, the Alaska Constitution, or the ordinances of this borough, is 78 subject to taxation at a rate not to exceed three percent of its full and true value in money 79 as assessed on the first day of January of the assessment year. 80 1. There is no limitation on taxes to pay bonds. 81 B. A private leasehold, contract,preferential use agreement, or other interest in any real 82 or personal property that is exempt from taxation pursuant to state or federal law, or for 83 any other reason,remains taxable to the extent of the private interest. (AS 29.45.030(A)). 84 C. The following definitions shall apply to this section unless otherwise expressly 85 indicated: 86 1. "Personal property" includes all property, whether corporeal or incorporeal, that 87 is not specifically included in this section's definition of "real property," and 88 includes mobile homes, trailers, house trailers, trailer coaches, and camper 89 trailers, so long as they are not attached to the land or connected to water,gas, 90 electric, or sewage facilities, and are not registered with the State of Alaska 91 Department of Motor Vehicles as rolling stock. 92 2. "Real property" includes not only the land itself, whether laid out in lots or 93 otherwise, but also all buildings. structures, improvements, fixtures of any kind Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 2 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... • Page 38 of 92 AGENDA ITEM #13.C.1. 94 thereon, and also any possessory rights and privileges belonging to or in any 95 way appertaining thereto. The word 'tract"includes all lands, pieces, or parcels 96 of land which may be separately assessed, together with fixtures and 97 improvements thereon. 'Real property" also includes mobile homes, trailers, 98 house trailers, double-wide-type mobile or modular homes, trailer coaches and 99 similar property,which are used or intended to be used for residential, office, or 100 commercial purposes, and are attached to the land or connected to water,gas, 101 electric, or sewage facilities, except for those mobile homes and house trailers 102 which are held for sale by persons engaged in the business of selling mobile 103 homes. [Ord. FY2014-10 §3, 2014; Ord. 84-16-0 §1, 1984; prior code Ch. 3 104 subch. 1 §2. Formerly§3.20.020]. 105 3. "Mobile homes," more specifically classified as "manufactured housing" 106 are all forms of prefabricated housing that is largely assembled in 107 factories and then transported to sites of use.The definition of the term in 108 the United States is regulated by federal law(Code of Federal Regulations, 109 24 CFR 3280), paraphrased here: Manufactured homes are built as 110 dwelling units of at least 320 square feet(30 m2) in size with a permanent 111 chassis to assure the initial and continued transportability of the home. 112 The requirement to have a wheeled chassis permanently attached 113 differentiates "manufactured housing" from other types of prefabricated 114 homes,such as modular homes. For purposes of this code a mobile home 115 or manufactured home is a dwelling structure built on a steel chassis and 116 fitted with wheels that is intended to be hauled to a usually permanent site: 117 118 Section 4: Title 3 Revenue and Finance Chapter 3.35 Real Properly Tax and Chapter 119 3.35.040 Method of assessment is hereby amended as follows: 120 121 3.35.040 Method of assessment 122 A. All taxable property must be assessed at its full and true value as of the first day of 123 January of the assessment year. The full and true value is the estimated price that the 124 property would bring in an open market sale between a willing seller and a willing buyer 125 both conversant with the property, under the then-prevailing market conditions and with 126 prevailing general price levels.The assessor shall strive to make all assessments fair and 127 equitable. Taxable interests in otherwise non-taxable property, both real and personal, 128 shall be taxed based on the lessee's possessory interest in the property. 129 1. Real property shall be assessed to the owner of record as shown on the 130 records of the Kodiak district recorder;provided, however,that any other person 131 having an interest in the property may be listed on the assessment records with 132 the owner. The person in whose name any property is listed as owner thereof • 133 shall be conclusively presumed to be the legal owner of record for tax purposes. 134 If the owner of the land is unknown,such land may be assessed to the unknown 135 owner or unknown owners. No assessment shall be invalidated by a mistake, 136 omission or error in the matter of the owner of real property assessed, if the 137 property is correctly described, and it shall be the responsibility of the owners of 138 the property to keep the assessor property informed as to their current address 139 and no assessment shall be invalidated on the basis of improper notice if it is Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 3 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 39 of 92 AGENDA ITEM #13.C.1. 140 shown that the notice of value has been sent to the last known address of the 141 owner of record. 142 2. Personal property shall be assessed to the last reported owner of record as 143 contained in borough records. No assessment shall be invalidated by a mistake 144 or omission or error regarding ownership of personal property. It is the 145 responsibility of the owners of personal property to keep the assessor properly 146 informed as to the current status of their business, whether active or inactive 147 and their current mailing address. 148 3. On or before February 1st of each year, the owners of mobile home parks 149 or other properties upon which are situated one or more mobile homes 150 that do not belong to the owner of the underlying land,shall submit to the 151 borough assessor a report that identifies the owner of record for each 152 mobile home located on their property, as well as the mailing addresses 153 and other contact information for those owners. If this information Is not 154 received by the assessor by February 1, all mobile homes, structures and 155 fixtures situated on the land shall be assessed to the land owner unless 156 the borough otherwise confirms ownership by another owner of record. 157 3-4. The assessor may list real property located in any subdivision by lot and block 158 or tract description, and unsubdivided property according to the land office, 159 section and township survey description, or by giving the boundaries thereof, or 160 by reference to the book and page of the records of the Kodiak district recorder 161 where the description may be found, or by designation of tax lot number • 162 referring to a public record kept by the assessor of descriptions of real property, 163 or in such other manner as to cause the description to be capable of being 164 made certain. Initial letter, abbreviations, fractions and exponents to designate 165 the township, range, section or part of a section, or the number of any lot or 166 block or part thereof, or any distance, course, bearing, or direction may be 167 employed in any such description of real property. 168 45. A private interest in public property is taxable. When any real or personal 169 property which would otherwise be exempt from taxation because of ownership 170 or control by a federal, state, or municipal government, or by some other tax 171 exempt entity is leased, loaned, or otherwise made available to and used by.a 172 private person, such person's interest therein shall be taxed in the same manner 173 as taxes assessed to owners of real property, except that taxes assessed under 174 this subsection shall be a lien only on the interest in the property of such person. 175 Private leaseholds,contracts or other interest in land, or property owned or held 176 by the United States, the state, or other political subdivisions and other tax 177 exempt entities shall be taxable to the extent of the value of the possessory 178 interest. 179 6,6. The assessor,either personally,or through any designated assistant, shall,after • 180 identifying themselves, have the right to enter upon and inspect the premises of 181 any person at reasonable times for the purpose of making an examination, 182 evaluation or assessment of the real property. The assessor or the assessor's 183 agent shall have access to and may examine all property records relevant to its 184 valuation, including but not limited to income and expense statements, rent rolls, 185 leases, pertinent income tax forms, and sale closing documents. Any person Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 4 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 40 of 92 AGENDA ITEM #13.C.1. 186 shall,upon request,furnish to the assessor or designated assistant every facility 187 and assistance for the purpose of such examination,evaluation,or assessment. 188 6,7. The borough shall keep confidential all proprietary records received by the 189 assessor's office, for which there exists a reasonable expectation of 190 confidentiality. Such records may include tax returns, rent rolls, income and 191 expense statements, sales and finance information, and other financial 192 information that is not readily accessible by some other means. 193 B. Contents of Assessment Roll. The assessor shall complete the listing of the annual 194 assessment roll of all real and personal property within the corporate limits of the borough 195 before the last day of February of that assessment year. The assessor shall prepare an 196 annual assessment roll upon which shall be entered the following particulars: 197 1. The names and last known addresses of all persons with property liable to 198 assessment and taxation; 199 2. A description of all taxable property;and 200 3. The assessed value of all taxable property. 201 C. Notice,Publication,and Correction of Assessment Roll. 202 1. The assessor shall give to every person named in the assessment roll a notice 203 of assessment showing the assessed value of his property. On the assessment 204 notice shall be printed a brief summary of the information for the taxpayer;of the 205 dates when the taxes are payable, delinquent and subject to interest and 206 penalty; final dates for appeal of the assessment to the board of equalization; 207 dates when the board will sit for equalization purposes;and any other particulars • 208 specified by the borough assembly. The assessment notice shall be directed to 209 the person to whom it is to be given and shall be sufficiently given if it is mailed 210 by first-class mail addressed to,or is delivered at, his address as last known by 211 the assessor. If the address is not known to the assessor, the notice may be 212 addressed to the person at the post office nearest to the place where the 213 property is situated.The date on which the notice is mailed shall be deemed to 214 be the date on which the notice is given for purposes of this chapter. 215 2. When valuation notices have been mailed, the assessor shall cause notice that 216 the assessment rolls have been completed to be published in a newspaper of 217 general circulation, published in the borough at least once each week for two 218 successive weeks. If no newspaper of general circulation is published in the 219 - borough, the assessor shall have the notice posted at two public places for a 220 period of two weeks. The notice shall state when and where the equalization 221 hearings will be held. 222 3. The assessor may correct an error or supply an omission in the assessment roll 223 at any time before the sitting of the board of equalization. It shall be the duty of 224 every person who receives a notice of assessment to advise the borough 225 assessor of any error or omission in the assessment of the person's property,so 226 that the borough assessor may correct any errors in the assessment roll. 227 4. Period of Review. The borough assessor or designees may perform reviews of 228 assessed values within 30 days of the date that assessment notices have been 229 mailed. 230 a. A property owner may appeal an assessment of their property to the 231 assessor or designees and upon providing credible information or Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 5 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 41 of 92 • AGENDA ITEM #13.C.1. 232 upon a more in depth inspection and analysis of the property at the 233 owner's request the assessor may adjust the assessment 234 appropriately if found to be in error. 235 b. The property owner may appeal the assessor's valuation to the board 236 of equalization, using forms provided by the borough, within the 237 original 30-day time frame from the mailing of the original notice. The 238 assessor review will not suspend or delay the final date of written 239 appeal to the board of equalization. [Ord. FY2014-10 §5, 2014; Ord. 240 82-33-0, 1982; Ord. 81-47-0, 1981; Ord. 71-4-0, 1971; prior code 241 Ch. 3 subch. 1 §4A. Formerly§3.20.040]. 242 243 Section 5: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 244 3.35.050 Board of equalization is hereby amended as follows: 245 246 3.35.050 Board of equalization 247 A. Membership,Qualification, Duties,Terms. 248 1. Members. The board of equalization shall be composed of five persons, not 249 assembly members, appointed by the assembly.At least one alternate member 250 shall be appointed. 251 2. Qualifications. Members and alternate members should be appointed on the 252 - basis of their expertise in real and personal property appraisal, the real estate 253 market, the personal property market, and other fields related to their functions 254 as board members. Each member shall be a qualified voter of the borough and 255 shall remain a resident of the borough while in office. Borough employees may 256 be appointed to serve on the board of equalization unless they are employed by 257 the finance or assessing departments. 258 3. Duties.The board may determine equalizations on properties brought before the 259 board by appellants. It shall only hear appeals for relief from an alleged error in 260 valuation on properties before the board by an appellant. 261 4. Terms of Office. Upon confirmation, members and alternate members shall 262 serve for three years or until their successors are appointed and confirmed. Of 263 the members initially appointed, two shall serve three-year terms, two shall 264 serve two-year terms, and one shall serve a one-year term. 265 5. Hearing Dates.The board shall commence hearings on the first Monday in May, 266 unless otherwise changed by resolution. Hearings will continue from day to day 267 as established by the board and the borough clerk until all properly filed appeals 268 have been'heard. 269 B. Chairperson. The board annually shall elect a member to serve as its chairperson. 270 The chairperson may call meetings of the board, shall exercise such control over 271 meetings as to ensure the fair and orderly resolution of appeals, shall make rulings 272 on the admissibility of evidence, and shall conduct the proceedings of the board in 273 conformity with this chapter.A vice-chairperson shall also be selected to serve in the 274 chairperson's absence. If both are absent, the members present shall select a 275 person to preside. 276 C. Appeals to the Board. Kodiak Island Borough,Alaska Ordinance No FY2015-10 Page 6 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 42 of 92 AGENDA ITEM #13"C.1. 277 1. A person whose name appears on the assessment roll, or the authorized 278 representative of that person, may appeal to the board for relief for an alleged 279 error in valuation not adjusted by the assessor to the taxpayer's satisfaction. 280 The authorized representative shall be named by the property owner in writing 281 to the assessor and board of equalization at the time of filing or no later than 282 three days in advance of hearing. The time requirement for providing a 283 representative in writing may be waived at the determination of the board during 284 the hearing if good cause is shown that may include, but not limited to, the 285 following: stranded from Kodiak due to inclement weather, serious medical 286 condition,serious family emergency,or death in the family. 287 2. The appellant shall,within 30 calendar days after the date of mailing of notice of 288 assessment, submit to the assessor a written appeal specifying grounds for 289 such appeal. The board shall prescribe the form in which written notices of 290 appeal shall be made. Otherwise,the right of appeal ceases unless the board of 291 equalization finds that the taxpayer was unable to comply within the 30-day 292 appeal period and grants a hearing to the appellant. 293 3. The assessor shall notify the appellant by mail,and email if provided, of the time 294 and place for the hearing and assign a docket number of appeal. 295 4. If parties to whom notice was mailed as provided herein fail to appear,the board 296 may proceed with the hearing in their absence. All parties, their authorized 297 representatives,and witnesses must appear in person at the hearing. 298 5. The assessor shall prepare for use by the board of equalization a summary of 299 assessment data relating to each assessment that is appealed. This summary 300 shall be provided to the board and made available to the appellant at least 10 301 calendar days before the hearing. Summary of assessment data for late-filed 302 appeals granted by the board will be provided as soon as practicable. 303 6. A city in the borough may appeal an assessment to the borough board of 304 equalization in the same manner as a taxpayer.Within five days after receipt of 305 the appeal, the assessor shall notify the person whose property assessment is 306 being appealed by the city. 307 7. A property owner who seeks to appeal the assessor's valuation, after the 30-day 308 filing period has closed, shall file a letter with the assessor stating the reasons 309 why the property owner was unable to comply with the 30-day appeal period. 310 The deadline to file a late-file request is on April 15th of the current assessment 311 year. Should April 15th fall on a Saturday or Sunday, late filers shall have until 312 4:30 p.m.on the first Monday following to file their request. 313 314 On the next business day following the deadline to file a late-file request or as 315 soon as is practicable, the board shall consider each letter and shall only 316 consider reasons the appellant was unable to comply with the 30-day appeal 317 period.It shall not consider evidence regarding property valuation.The appellant 318 may not make an oral presentation at the hearing. The determination shall be 319 based on the letter and supporting documents. The board shall interpret the 320 term "unable to comply" as meaning that a property owner must demonstrate 321 compelling reasons or circumstances which would prevent a reasonable person Kodiak Island Borough.Alaska Ordinance No.FY2015-10 Page 7 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 43 of 92 AGENDA ITEM #13.C.1. 322 under the circumstances from filing an appeal in a timely manner during the 30- 323 day appeal period. 324 325 If the late-file request is granted, the property owner shall have five calendar 326 days from the decision of the board to file an appeal and submit to the 327 assessor's office all documentary evidence in their possession which they wish 328 to be considered and which is relevant to the resolution of the appeal. If the late- 329 file request is denied,the assessor shall notify the property owner of the board's 330 decision in writing. 331 D. Quorum and Voting. 332 1. 'Quorum.A quorum shall consist of four members. . 333 2. Voting. The granting of any appeal or part thereof shall require the concurring 334 vote of at least three board members. Any appeal or part thereof which is not 335 granted by the board shall be considered denied. 336 E. Hearings, Procedures. 337 1. Record. The clerk is the ex officio clerk of the board and shall prepare the 338 board's minutes. The clerk shall keep electronic recordings of the board's 339 hearings per the borough retention schedule. The board of equalization 340 summary certification will constitute the board's minutes. 341 2. Counsel. All parties may be represented by counsel during hearings before the 342 board. On procedural matters, the borough attorney may offer legal counsel to 343 the board in the course of its proceedings. Upon the recommendation of the 344 • borough attorney,the board may retain legal counsel from another attorney for a 345 particular matter. 346 3. Appeal Number. Every appeal shall be assigned a docket number which, along 347 with the name of the appellant,shall be read into the record before the hearings 348 on the appeal may commence. 349 4: Burden of Proof. The burden of proof rests with the appellant, who must 350 convince the board by clear and convincing evidence that the assessment was 351 unequal, excessive, improper, or undervalued based on the facts stated in a 352 written appeal or proven at the appeal hearing in accordance with subsections. 353 (E)(5) and (7) of this section. If the valuation is found to be too low, the board 354 may raise the assessment.The borough shall make available to the appellant all 355 reasonably pertinent documents requested'for presentation of the appeal, 356 including but not limited to documents presented or requested by the board of 357 equalization for presentation of the appeal in accordance with subsection (C)(5) 358 of this section. 359 5. Rules of Evidence. Evidence shall only be presented by the appellant and the 360 assessor or their authorized representative. The board shall not be restricted by 361 the formal rules of evidence; however, the chairperson may exclude evidence 362 irrelevant to the issues appealed. Hearsay evidence may be considered, 363 provided there are adequate guarantees of its trustworthiness and that it is more 364 probative on the point for which it is offered than any other evidence which the 365 • proponent can procure by reasonable efforts. The appellant must submit to the 366 assessor's office by April 15th all documentary evidence in their possession 367 which they wish to be considered and which is relevant to the resolution of the Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 8 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 44 of 92 AGENDA ITEM #13.C.1. 368 appeal. Should April 15th fall on a Saturday or Sunday, appellants shall have 369 until 4:30 p.m.on the first Monday following to submit their evidence. 370 371 This evidence includes but is not limited to purchase and closing documents, 372 appraisal reports, brokers' opinion of value, engineers' reports, estimates to 373 repair, rent rolls, leases, and income and expense information. The board of 374 equalization may in its discretion decline to accept documents offered at the 375 hearing which should have been provided by April 15th. In exercising this 376 discretion, the board shall consider the relevance and probative value of the 377 documents which are under consideration, accepting those documents which in 378 all fairness are necessary to a fair resolution of the appeal. Prior to the board 379 meeting, the appellant and assessor may agree to an extension of time for the 380 production of evidence. 381 6. Order of Presentation.The order of presentation is as follows: 382 a. The appellant shall present evidence and argument not to exceed 383 five minutes. 384 b. Following the appellant, the assessor shall present the borough's 385 evidence and argument not to exceed five minutes. 386 c. The appellant may make a rebuttal presentation directed solely to 387 the issues raised by the assessor not to exceed two minutes. 388 d. The assessor may address the rebuttal by the appellant not to 389 exceed two minutes. 390 Each party shall be allowed a total of five minutes to present evidence and make 391 oral argument. The time limits allotted include presentations from either the 392 appellant's or assessor's authorized representatives, counsels, or witnesses. 393 Additional time may be permitted by the board depending on the complexity of 394 the case. The members of the board may ask questions, through the 395 chairperson, of either the appellant or the assessor, authorized representatives, 396 counsels, or witnesses at any time during the hearing. After both the appellant 397 and the assessor have made their presentations, each may question the other 398 through the chairperson.The chairperson may end the questioning and call for a 399 motion from the other members. 400 7. Witnesses, Exhibits and Other Evidence. The appellant and the assessor may 401 offer the oral testimony of witnesses and documentary evidence during the 402 hearing. At the request of the appellant, evidence submitted pursuant to 403 subsection (E)(5) of this section relating to the assessed valuation of property 404 used in an income-producing commercial enterprise shall be confidential. The 405 assessor and the appellant may stipulate to facts to be presented to the board, 406 provided the assessor has received credible and reliable evidence to establish 407 the facts. 408 409 The only exhibits that shall be admitted into the record at the hearing are those 410 exhibits provided pursuant to subsection (E)(5) of this section. However, at the 411 hearing, parties may use demonstrative or illustrative exhibits; provided, that all 412 such exhibits are duplicates of exhibits or information provided to the board 413 pursuant to subsection (E)(5) of this section. Additionally, witnesses may write Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 9 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 45 of 92 AGENDA ITEM #13.C.1. 414 on a board while orally testifying to illustrate their testimony. The limitation on 415 the use of exhibits in this section shall not preclude the parties from presenting 416 oral testimony at the hearing. 417 8. Decisions. • 418 a. The assessor may recommend changes to the existing value during 419 the hearing. 420 b. After the appellant and assessor have presented their cases, the 421 hearing shall be closed by the chairperson, and no further evidence 422 • shall be offered or considered in deliberations unless a member of 423 the board of equalization asks for additional information from either 424 party. Both parties shall be given an equal opportunity to respond to 425 any such requests for additional information. 426 c. The board may decide the appeal after the presentations, or it may 427 defer a decision no later than 30 days after the hearing date. Final 428 board action shall be taken by motions that set out specific findings 429 of fact at the meeting and shall not be reconsidered, amended, or 430 rescinded by the board. Only one motion may be on the floor at a 431 •time, and the board shall vote on the motions until its findings are 432 established. The vote must be taken and entered in the permanent 433 record of the proceedings.The motions available for the board are: 434 i. Motion to uphold the assessor's valuation. 435 ii. Motion to reduce the assessment. 436 iii. Motion to increase the assessment. 437 iv. Motion to dismiss the appeal. 438 v. Motion to defer the decision. 439 vi. Or any other motion set out in Alaska Statutes and 440 regulations governing board of equalization appeals. 441 d. No later than 30 days following the hearing,the board shall render a 442 written decision which includes findings of fact based on evidence 443 presented at the hearing clearly stating the grounds upon which the 444 panel relied to reach its decision and advising all parties of their right 445 to appeal the decision to superior court. 446 9. Certification. The board shall certify its actions to the assessor within seven 447 days following its adjournment. 448 F. Further Appeals.Any appeal of a decision of the board shall be made to the Ssuperior 449 Ceourt, Third Judicial District, State of Alaska. No appeal of a board's decision to the 450 superior court may be taken unless the action is filed and the borough attorney is served 451 with notice of such appeal within 30 days following the board's written decision. [Ord. 452 FY2014-10§6,2014; Ord. FY2012-04§4,2011; Ord. FY2011-12§2,2011;Ord.98-03§2, 453 1998;Ord.78-21-0§1, 1978.Formerly§3.20.050). 454 455 Section 6: Title 3 Revenue and Finance, Chapter 3.35 Real Property Tax and Chapter 456 3.35.070, Addresses — Responsibility of persons subject to taxation, is 457 hereby amended as follows: 458 459 3.35.070 Addresses—Responsibility of persons subject to taxation Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 10 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 46 of 92' AGENDA ITEM #13.C.1. 460 It shall be the responsibility of every person who owns or controls real or personal property 461 subject to tax by the municipality to file with the office of the assessor the address where 462 he will receive notices, bills, or other correspondence regarding taxation. No person shall 463 be excused from paying taxes or penalties thereon for the reason that he did not receive a 464 tax notice, bill, or any other correspondence due to an improper mailing of assessment 465 notice, billings, or other correspondence. The owners of mobile homes located within 466 mobile home parks, or on land not owned by the mobile home owner, are not 467 exempted from the requirements of this section, notwithstanding the provisions set 468 forth at section 3.35.040(A)(3). (Ord. FY2014-10 §7, 2014; Ord. 78-21-0 §4, 1978. 469 Formerly§3.20.062]. 470 471 Section 7: Title 3 Revenue and Finance, Chapter 3.35 Real Property Tax and Chapter 472 3.35.090, Property tax billing, is hereby amended as follows: 473 474 3.35.090 Property tax billing 475 The treasurer finance director, upon receipt of the certified assessment roll and with the 476 millage rate established by the assembly, will cause to produce property tax bills for all 477 property owners of record.These tax bills will be mailed to the most recent address on file. 478 [Ord.FY2014-10§8,2014;Ord.82-7-0, 1982. Formerly§3.20.085]. 479 480 Section 8: Title 3 Revenue and Finance,Chapter 3.35 Real Property Tax and Chapter 481 3.35.100,Correction of errors,is hereby amended as follows: 482 483 3.35.100 Correction of errors 484 A. Correction of Error in Billing of Penalty and Interest. When it is shown to the chief 485 fisca4-effiser finance director that a taxpayer has been billed erroneously for tax, tax 486 penalty, or interest because of administrative error by the borough, the chief-fiscal-officer 487 finance director may adjust the tax bill accordingly. 488 B. Correction of Errors in Assessment.The assessor may correct errors or omissions in 489 the roll before the board of equalization hearing.No changes to the roll can be made once 490 the board has certified their actions except: 491 1. The assessor may correct a manifest clerical error in the assessment roll at any 492 time.A manifest clerical error is a typographical, computational, or other similar 493 error readily apparent from the assessment notice, tax statement or other 494 borough tax and assessment records and made by a borough employee in the 495 performance of typing, record keeping, filing or other similar duties. A manifest 496 clerical error does not require extrinsic evidence to make it clear. 497 2. The assessor may correct an omission of the roll as described in KIBC 498 3.35.060(C)at any time. 499 C. All rights provided by this chapter, including but not limited to rights to appeal and 500 times for making payments, shall be reserved to the person receiving a corrected 501 assessment or tax bill as of the time the new assessment or billing is mailed. [Ord. 502 FY2014-10§10,2014;Ord.82-7-0, 1982;Ord.78-21-0§3, 1978.Formerly§3.20.086]. 503 504 Section 9: Title 3 Revenue and Finance Chapter 3.35 Rea/Property Tax and Chapter 505 3.35.120 Tax due dates and delinquency is hereby amended as follows: Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 11 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 47 of 92 AGENDA ITEM #13.C.1. • 506 507 135.120 Tax due dates and delinquency 508 Taxes are due when billed. If payment is by a single payment, such payment must be 509 physically received in the borough finance office on or before fifteen day of October in 510 • the year in which taxes are levied, or postmarked by the United States Postal Service 511 Office(USPOS), not metered machines, = = • .• .• . . -. ..- : by the 512 due date. Taxes levied in any given year may be paid in two equal installments. If the 513 taxpayer elects this option, then the first half is delinquent unless it is de#vered-te 514 physically received by the borough office or postmarked by the USPOS, not metered 515 machines,prior te-midnight on or before the fifteenth day of August in the year in which the 516 taxes are levied. The second half of the taxes thus levied is delinquent unless it is 517 delivered-te physically received by the borough finance office or postmarked by the 518 USPOS, not metered machines, prier-4e-midnight on or before the fifteenth day of 519 November in the year in which the taxes are levied. If the annual levy is made on or after 520 the first day of June, the borough assembly may by resolution establish a later 521 delinquency date. Taxes normally become delinquent after the dates mentioned in this 522 section. [Ord. 99-02§2, 1999;Ord.88-30-0, §2, 1987;Ord. 84-24-0, 1984;Ord.82-33-0, 523 1982. Formerly§3.20.088]. 524 525 Section 10: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 526 3.35.140 Late payments - Penalty and interest is hereby amended as 527 follows: 528 529 3.35.140 Late payments-Penalty and interest 530 -If the first payment is not paid when due, the entire tax becomes delinquent and subject to 531 a penalty of 10 percent of the entire tax and interest shall accrue on the unpaid principal 532 balance, excluding the penalty, at the rate of 12 percent per year. If the first payment is 533 paid when due but the second payment is not paid when due, the unpaid balance of the 534 tax becomes delinquent and subject to a penalty of 10 percent of the unpaid balance, and 535 interest shall accrue on the unpaid principal balance, excluding the penalty, at the rate of 536 12 percent per year. Partial payments shall be applied first to accrued penalties, then to 537 interest, then to principal. Notwithstanding the acceptance of partial payment, the unpaid 538 balance remains delinquent and the lien therefore enforceable in accordance with law. For 539 the purposes of this section, a payment is paid when due only if it is physically received in 540 the borough finance office by the due date or is postmarked by the US120 United States 541 Postal Service, •. ••- - -: ••--•'•--, : •••••• on or before the due date. 542 Payments received after the due date that bear a postmark generated by a metered 543 machine that is not in the possession and control of the United States Postal 544 Service shall be deemed delinquent. [Ord. 99-02 §2, 1999; Ord. 93-36 §2. 1993; Ord. 545 86-25-0. 1986;Ord.82-33-0, 1982:Ord. 80-22-0§1, 1980. Formerly§3.20.090). 546 547 Section 11: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 548 3.35.150 Enforcement of tax liens on real property is hereby amended as 549 follows: 550 551 3.35.150 Enforcement of tax liens on real property Kodiak Island Borough,Alaska Ordinance No. FY2015-10 Page 12 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 48 of 92 • AGENDA ITEM #13.C.1. 552 A. Real Property Tax, Lien, Date.Taxes on real property are a prior and paramount lien 553 on the property upon which the taxes are levied. The lien includes any penalty or interest 554 which may accrue from the delinquency date.The lien attaches on the first day of the tax 555 and/or assessment year in which the taxes are levied. 556 8. If the tax on real property is not paid when due,the assembly borough may enforce a 557 lien on the tax by the sale of the property assessed after foreclosure in the special 558 proceedings provided for by the Alaska Statutes, by order of the superior court of the 559 district where the property assessed is located,,with the exception that delinquent real 560 property taxes for mobile homes that are located on land that is not owned by the 561 mobile home's owner of record may be enforced by a personal action against the 562 delinquent taxpayer brought in the district or superior court, in addition to other 563 remedies available to enforce the lien. 564 C. If the tax on a leasehold interest in a tax exempt property is not paid when due, the 565 borough may enforce the tax by a personal action against the delinquent taxpayer brought 566 in the magistrate or superior court, in addition to other remedies available to enforce the 567 lien.[Ord.84-1-0§1, 1984;prior code Ch.3 subch. 1 §9. Formerly§3.20.100]. 568 569 Section 12: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 570 3.35.160 . Foreclosure, is hereby 571 amended as follows: 572 573 3.35.160 Foreclosure 577 .. ..... . . .. ... .....:.. .. .. _ . _ .. . .. : ..-_. 578 property, a description of aeh property ac it app ars on the latest tax roll, the year or 579 :... . _ - : ._ ...:• .. -..... . • - — - - 582 and tho corporate a al that it is a true and coroct roll of tho delinquent taxes of tho 586 §10.Formerly§3.20.110). - -587 A. The borough shall prepare an annual foreclosure list pursuant to A.S.29.45.330. 588 B. The provisions of A.S.29.45.330 through 29.45.490 apply to borough delinquent 589 property tax foreclosures. 590 C. The borough shall not foreclose against property that it knows has been 591 determined by a federal, state or local agency to be contaminated or found to 592 contain hazardous materials subject to regulation by a federal, state or local 593 government The borough may proceed with a personal action against the 594 delinquent taxpayer to collect the tax,costs,penalty and Interest. 595 596 Section 13: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 597 3.35.170 Publication of the foreclosure list is hereby repealed: Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 13 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 49 of 92 AGENDA ITEM #13.C.1. • • • 598 600 •: .:.., : ,. . : - :. :• : 606 •- •: • : - : : ...• .:... ..: : 607 . _. : e, .: . - ---- _. - --- . ... a :. - _. . - -.:. 608 609 Section 14: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 610 3.35.180 Notice of foreclosure proceeding is hereby repealed: • 611 612 _ :. . . • - . :. :. . - •_•'•: 613 A. On the day designated in the notice provided herein, a certified copy of the 615 _:_•. • e : :. :.. : : :.::. .:- _•_ er : - 616 •- -. :. . .• -: .:.:: .. . .. :: ---- . :-. :: : . 617 •:• .•. :: ••.:- :• • -- - ••- - . .•e — . 618 • 619 : •- : :. :.. : ... -- .. _ ,- . .. 620 : ::-• :... : . .. _.. ._ - :. .. 621 , .,.. - .., . .. ':'•, •: 622 : ::-. •- .••:.• : - .. . . -: :• - 623 . .- . -. •- - . .:.,- :-'•: ,.: . .. :: , ,. _ _ 624 .-- , - .. .. ---- -' •' .: : :. :.. : . - . 625 e• „: : ,. -_ -•e • :: : ._ -.• _ •: .. ._:. 626 •: e:_ .. , : :. :.. : . .-- .:• . : 629 •, '-- :-.. •- : :::- -., 630 _ _ .'• • : ::-- '•- .5-, .- - 631 • •-, • • -, . _ _ -. . - .. . - •- •_ - .- --- e, . . - 633 634 Section 15: Title 3 Revenue and Finance Chapter 3.35•Real Property Tax and Chapter 635 3.35.190 Clearing delinquencies before sale is hereby repealed: 636 637 638 A. If the treasurer rocoivos delinquent tax p'•ynonts at least one wool,before the filing of - 640 and the-petition- 641 a. •- '•: .: ..: '.. ':• : ,,_ •: : : - _•: .: : : .. 642 ,: -,. -. :. .: . c., ,,: .: ' - -: „-- -•, ' ,- .. . ::,. 643 .•. - -- .:. . . : - - ._ : . •: . Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 14 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 50 of 92 AGENDA ITEM #13.C.1. 644 .. ..... .. .. . .. :-"•:.-• - -. - --- 646 647 Section 16: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 648 3.35.200 Notice of foreclosure list to lien holder is hereby repealed: 649 652 -. . - -:.-. •: . - : - .. , 653 ,_ ,. _. .. ..... ... ... ... 654 ._ :-•.:- .. .. .:: .:. . .. : .... .. ..... . .. .. - 655 expiration of the lien. Notice.need not be given after expiration of the lien unless a further 659 •- -__. - .... .... .. ... _ _, .. ._ "_. ., ,_ ._ .. _ 660 .. .. .: " •: : _ _ . , .... _ ._ 661 : -• : : :::• ., - _ , . ,_._c .- .. 663 - : ::-•"- ".. .:-, - . ., ... -: . . 664 properties.[Ord.82 7 O, 1082;prior code Ch.3 subch. 1 §14.Formerly§3.20.150]. 665 666 Section 17: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 667 3.35.210 Apportionment of costs is hereby repealed: 668 669 671 each property on the foreclosure list. Tho intent of this fee is to covor all costs of 672 publication and foreclocure.[Ord.03 36§3, 1003;Prior code Ch.3 subch. 1 §15.Formerly 673 §3.20.160]. 674 675 Section 18: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 676 3.35.220 Enforcement by personal action is hereby repealed: 677 678 . .. , .-..:. , ,:._ . . '-• 682 :: :-,. .. ..:_ .: -- -. : :,-.. - :.-, : . :-•. .: _•: 683 685 - - -- -- er _• t :e . : . . •: e.•.:. :. •- _ .. .. _. , 686 1008;Ord.00 38§2, 1000. Formerly§3.20.165]. 687 688 Section 19: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 689 3.35.230 Foreclosure proceedings is hereby repealed: Kodiak Island Borough.Alaska Ordinance No.FY2015-10 Page 15 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 51 of 92 AGENDA ITEM #13.C.1. 690 691 692 ., :: ,.:• <. _ '._ _;_ .. _ - 695 pcepe#y7 .. . 696 698 •- sn •- • : . ;:..-. -.: :.- .. 700 : ::-• : : _ 701 amender 702 703 • :- ee:•.:. ; •: -: :_e• .•:: •: , , . :•. , •- • . . :. .•. 704 .: , : ;; ; ; ___ ;•• -- r , , e.. 709 ._ .••:.• .:: .. n-.-. .•: ::_ -- ':-: 711 ..- 714 -. :. •- : ------- - ------ .: - ._ '.::••:• .•: 716 717 Section 20: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 718 3.35.240 Effect of redemption is hereby repealed: 719 720 721 722 :: :.:• .::..:. -- , _ . -- : ::... .. - 724 -.: :. : • . :• .: ..: ., ; ;;.. _ .. - ._ 725 ; .. - •- - -- - . - 727 .••:.• ; ._ ,.' :._ .. . , :. .•. _. -. 728 •. .:... _ . -._ ._. _ •- - _ -::..; 729 .. .. . .. 730 :-. : : •: _:... - . ; ;,...; .. 731 ; ; _;;..,. •: : :. ,.. ; , - _ e .. . . 732 - _.e.• .. •. 733 734 Section 21: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 735 3.35.250 Notice of expiration of redemption is hereby repealed: Kodiak Island Borough,Alaska Ordinance No.FY2015-10 Page 16 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 52 of 92 AGENDA ITEM #13.C.1. 736 737 738 • : _ •. _ ::-... .•_ 739 ... . '-' - -• -' -- - - - -• - : .. - .•• '- - - . . . ...... .. .. •.. . . .. .. . 743 748 .. .:: _.. : .. : .:.' , •_ •- r:• : - : - .1 ,. . 749 .-: •: :_ , , . .. • . _ _. _ .: •, e•:. : e. ? . ..e - • , . 751 -- 752 Section 22: Title 3 Revenue and Finance Chapter 3.35 Real Property Tax and Chapter 753 3.35.260 Deed to borough is hereby repealed: 754 755 757 •- - -a: ... a- -- .. .. .: ._,. . •- -• a •- _ . ...... • 758 --- - - 760 --. . ....- . .. 761 762 Section 23: This ordinance will take effect upon adoption. 763 764 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 765 THIS DAY OF 2015 766 767 768 KODIAK ISLAND BOROUGH 769 770 771 772 Jerrol Friend, Borough Mayor 773 ATTEST: 774 775 776 777 Nova M.Javier,MMC, Borough Clerk 778 779 Kodiak Island Borough.Alaska Ordinance No.FY2015-10 Page 17 of 17 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 53 of 92 AGENDA ITEM #13.C.1. Alaska Statutes: Title 29 Municipal Government • 2014 Updates from the 28th Legislature 2"d Session: January-April 2014 OF Th r. : 4:4u;��. scbm, Yl -� tom^±. t� tev 41 .c ALAS Sean Parnell,Governor State of Alaska Susan K. Bell,Commissioner Department of Commerce,Community,and Economic Development Lawrence Blood,Acting Director Division of Community and Regional Affairs Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 54 of 92 AGENDA ITEM #13.C.1. Sec.29.45330. ALASKA STATUTES See.2945.350. action against the delinquent taxpayer brought in the district or superior court,in addition to other remedies available to enforce the lien.(§ 12 ch 74 SLA 1985) Sec.29.45330.Foreclosure list. (a)A municipality shall (I)annually present a petition for judgment and a certified copy of the foreclosure list for the previous years delinquent taxes in the superior court for judgment: (2)publish the foreclosure list for four consecutive weeks in a newspaper of general circulation distributed in the municipality or.if there is no newspaper of general circulation distributed in the municipality,post the list at three public places for at least 30 days: (3)within 10 days after the first publication or posting.mail to the last known owner of each property as the owners name and address appear on the list a notice advising of the foreclosure proceeding in which a petition for judgment of foreclosure has been filed and describing the property and the amount due as stated on the list. (b)The list must be arranged in alphabetical order as to the last name and shall include (I)the last known owner: (2)the property description as stated on the assessment roll: (3)years and amounts of delinquency; (4)penalty and interest due: (5)a statement that the list is available for public inspection at the clerk's office: (6)a statement that the list has been presented to the superior court with a petition for judgment and decree. (c)Completion of the requirements of(a)of this section constitutes and has the same force and effect as the filing of an individual and separate complaint and service of summons to foreclose a lien against each property described on the foreclosure list. (§ 12 ch 74 SLA 1985) Sec.29.45340.Clearing delinquencies. During the publication or posting of the foreclosure list and up to the time of transfer to the municipality a person may pay the taxes.together with the penalty. interest,and costs.The collector shall note payment on the foreclosure list.(§ 12 ch 74 SLA 1985) Sec.29.45350.List to lien holder. A holder of a mortgage or other lien on real property may request the clerk to send by certified mail notice of a foreclosure list that includes the real property.(§ 12 ch 74 SLA 1985) 158 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 55 of 92 AGENDA ITEM #13.C.1. Sec.29.45.360. . ALASKA STATUTES Sec 2945400. Sec.29.45.360.General foreclosure. A municipality shall bring one general foreclosure proceeding in rem against the properties included in the foreclosure list.If the owner is unknown,the property is proceeded against as belonging to"unknown owner." (§ 12 ch 74 SLA 1985) Sec.29.45.370.Answer and objection. A person having an interest in a lot on the foreclosure list may file an answer within 30 days after the date of last publication.specifying the person's objection.The court shall make its decision in summary proceedings.The foreclosure list is prima facie evidence that the assessment and levy of the tax is valid and that the tax is unpaid.(§ 12 ch 74 SLA 1985) Sec.29.45.380.Judgment. The court shall in a proper case give judgment and decree that the tax liens be foreclosed.It is a several judgment against each lot and a lien on each lot.(§ 12 ch 74 SLA 1985) Sec.29.45.390.Transfer and appeal. (a)Foreclosed properties are transferred to the municipality for the lien amount. When answers are filed the court may enter judgment against and order the transfer to the municipality of all other properties on the list pending determination of the matters in controversy.The court shall hear and determine the issues raised by the complaint and answers in the same manner and under the same rules as it hears and determines other actions. (b)The court clerk shall deliver a certified copy'of the judgment and decree to the municipal clerk.The certified judgment and decree constitutes a transfer to the municipality. (c)The judgment and decree stops objections to it that could have been presented before judgment and decree.Appeal from a judgment and decree of foreclosure,or from a final order in the proceeding,may be taken in a manner provided for appeals in civil actions.(§ 12 ch 74 SLA 1985) • Sec.29.45.400.Redemption period. Properties transferred to the municipality are held by the municipality for at least one year.During the redemption period a party having an interest in the property may redeem it by paying the lien amount plus penalties,interest,and costs, including all costs incurred under AS 29.45.440(a).Property redeemed is subject to all accrued taxes, assessments,liens.and claims as though it had continued in private ownership.Only the• amount applicable under thejudgment and decree must be paid in order to redeem the property.(§ 12 ch 74 SLA 1985) 159 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 56 of 92 AGENDA ITEM #13.C.1. Sec.29.45.410. ALASKA STATUTES Sec.2945.440. Sec.29.45.410.Effect. Receipt of redemption money by the municipality releases the judgment obtained under AS 29.45.380.The clerk or the clerk's designee shall record the redemption and issue a certificate containing a property description.the redemption amount and the dates of judgment and decree of foreclosure.The clerk or the clerk's designee shall collect the recording fee at the time of redemption and shall file the certificate with the record as part of the judgment roll.(§ 12 ch 74 SLA 1985) Sec.29.45.420.Additional liens. If a property included in a foreclosure list is removed after payment of delinquencies or redemption by another lienholder. the payment represented by receipt for payment constitutes an additional lien on the property.collectible by the lienholder in the same manner as the original lien.(§ 12 ch 74 SLA 1985) Sec.29.45.430.Possession during redemption period. Foreclosure does not affect the former owner's right to possession during the redemption period.If waste is committed by the former owner or by anyone acting under the permission or control of the former owner.the municipality may declare an immediate forfeiture of the right to possession.(§ 12 ch 74 SLA 1985) • Sec.29.45.440. Expiration. (a)At least 30 days before the expiration of redemption period the clerk or the clerk's designee shall publish a redemption period expiration notice.The notice must contain the date ofjudgment,the date of expiration of the period of redemption.and a warning that all properties ordered sold under the judgment.unless redeemed,shall be deeded to the municipality immediately on expiration of the period of redemption and that event'right or interest of a person in the properties will be forfeited forever to the municipality.The notice appears once a week for four consecutive weeks in a newspaper of general circulation distributed in the municipality.If there is no newspaper of general circulation distributed in the municipality,the notice is posted in three public places for at least four consecutive weeks.The clerk shall send a copy of the notice by certified mail to each record owner of property against which a judgment of foreclosure has been taken and,if the assessed value of the property is more than 510,000.to all holders of mortgages or other liens of record on the property.The notice shall be mailed within five days after the first publication.The mailing shall be sufficient if mailed to the property owner and to the holder of a mortgage or recorded lien at the last address of record. (b)The right of redemption expires 30 days after the date of the first notice publication. (c)Costs incurred in the determination of holders of mortgages and other liens of record and costs of notice publication incurred by a municipality under(a)of this section are a lien on the property and may be recovered by the municipality.(§ 12 ch 74 SLA 1985) 160 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 57 of 92 AGENDA ITEM #13.C.1. Sec.29.45.450. ALASKA STxrun:S Sec.29.45470. Sec.29.45.450.Deed to borough or city. (a)Unredeemed propertyin the area of the borough outside all cities is deeded to the borough by the clerk of the court. Unredeemed property in a city is deeded to the city subject to the payment by the city of unpaid borough taxes and costs of foreclosure levied against the property before foreclosure.The deed shall be recorded in the recording district in which the property is located. (b)Conveyance gives the municipality clear title,except for prior recorded tax liens of the United States and the state. (c)If unredeemed property lies in a city and if the city has no immediate public use for the property but the borough does have an immediate public use,the city shall deed the property to the borough.I f unredeemed property lies in the borough outside all cities and if the borough does not have an immediate public use for the property but a city does have an immediate public use.the borough shall deed the property to the city. (d)A deed is not invalid for irregularities,omissions,or defects in the proceedings under this chapter unless the former owner has been misled so as to be injured.Two years after the date of the deed,its validity is conclusively presumed and a claim of the former owner or other person having an interest in the property is forever barred.(§ 12 ch 74 SLA 1985) Sec.29.45.460.Disposition and sale of foreclosed property. (a)The municipality shall determine by ordinance whether foreclosed property deeded to the municipality shall be retained for a public purpose.The ordinance must contain the legal description of the property,the address or a general description of the property sufficient to provide the public with notice of its location,and the name of the last record owner of the property as the name appears on the assessment rolls. (b)Tax-foreclosed property conveyed to a municipality'by tax foreclosure and not required for a public purpose may be sold. Before the sale of tax-foreclosed property held for a public purpose,the municipality,by ordinance,shall determine that a public need • does not exist.The ordinance must contain the information required under(a)of this section. (c)The clerk or the clerk's designee shall send a copy of the published notice of hearing of an ordinance to consider a determination required under(a)or(b)of this section by'certified mail to the former record owner of the property that is the subject of the ordinance.The notice shall be mailed within live days after its first publication and shall be sufficient if mailed to the last record owner of'the property as the name appears on the assessment rolls of the municipality. (d)The provisions of(c)of this section do not apply with respect to property that has been held by the municipality fora period of more than 10 years after the close of the redemption period.(§ 12 ch 74 SLA 1985) Sec.29.45.470.Repurchase by record owner. (a)The record owner at the time of tax foreclosure of'property acquired by a municipality,or the assigns of that record owner,may,within 10 years and before the sale or contract of sale of the tax-foreclosed property by the municipality,repurchase t61 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 58 of 92 AGENDA ITEM #13.C.1. Sec.29.45.480. ALASKA STATUTES Sec.29.45490. the property.The municipality shall sell the property for the full amount applicable to the property under the judgment and decree plus (I)interest not to exceed 15 percent a year from the date of entry of the judgment of foreclosure to the date of repurchase: (2)delinquent taxes assessed and levied as though it had continued in private ownership: (3)costs of foreclosure and sale incurred by the municipality:and (4)costs of maintaining and managing the property incurred by the municipality including insurance,repairs.association dues,and management fees.that exceed amounts received by the municipality for the use of the property. (b)After adoption of an ordinance providing for the retention of tax-foreclosed property by the municipality for a public purpose.the right of the former record owner to repurchase the property ceases.(§ 12 ch 74 SLA 1985:am § 1 ch 192 SLA 1990) Effect of amendments. The 1990 amendment rewrote the second sentence of subsection(a). Sec.29.45.480.Proceeds of tax sale. (a)On sale of foreclosed real or personal property the municipality shall divide the proceeds less cost of collection,between the borough and the city having unpaid taxes against the property.The division is in proportion to the respective municipal taxes against the property at the time of foreclosure. (b)If tax-foreclosed real property that has been held by a municipality for less than 10 years after the close of the redemption period and never designated for a public purpose is sold at a tax-foreclosure sale,the former record owner is entitled to the portion of the proceeds of the sale that exceeds the amount of unpaid taxes.the amount equal to taxes that would have been assessed and levied after foreclosure if the property had continued in private ownership.penalty.interest.and costs to the municipality of foreclosing and selling the property.and costs to the municipality of maintaining and managing the property that exceed amounts received by the municipality for the use of the property.If the proceeds of the sale of tax-foreclosed property exceed the total of unpaid and delinquent taxes.penalty,interest and costs.the municipality shall provide the former owner of the property written notice advising of the amount of the excess and the manner in which a claim for the balance of the proceeds may be submitted.Notice is sufficient under this subsection if mailed to the former record owner at the last address of record of the former record owner.On presentation of a proper claim,the municipality shall remit the excess to the former record owner.A claim for the excess filed after six months of date of sale is forever barred.(§ 12 ch 74 SLA 1985;am §2 ch 192 SLA 1990) Effect of amendments. The 1990 amendment,in subsection(b),added all of the language of the first sentence beginning'and costs to the municipality,' Sec.29.45.490. Payment of taxes upon public utilization. If a municipality takes title to tax-foreclosed property for a public purpose.the municipality shall satisfy unpaid taxes and assessments against the property held by other municipalities,with accrued interest but without penalty.If the amount required to satisfy 162 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 59 of 92 AGENDA ITEM #13.C.1. Sec.29.45.500. ALASKA STATUTES Sec.2945.560. the unpaid taxes and assessments exceeds the assessed value of the property,the municipality shall pay the other municipalities the assessed value,which shall be divided between the other municipalities in proportion to their respective taxes and assessments against the property at the time of foreclosure.(§ 12 ch 74 SLA 1985) Sec.29.45300.Refund of taxes. (a)If a taxpayer pays taxes under protest,the taxpayer may bring suit in the superior court against the municipality for recovery of the taxes.If judgment for recovery is given against the municipality,or, if in the absence of suit,it becomes obvious to the governing body that judgment for recovery of the taxes would be obtained if legal proceedings were brought,the municipality shall refund the amount of the taxes to the taxpayer with interest at eight percent from the date of payment plus costs. (b)If.in payment of taxes legally imposed,a remittance by a taxpayer through error or otherwise exceeds the amount due,and the municipality,on audit of the account in question,is satisfied that this is the case,the municipality shall refund the excess to the taxpayer with interest at eight percent from the date of payment.A claim for refund filed one year after the due date of the tax is forever barred. (c)The governing body may correct manifest clerical errors at any time.(§ 12 ch 74 SLA 1985) Article 3.City Property Tax. Section 550. Cities outside boroughs 600. Combining property tax with 560. Cities inside boroughs incorporation of a second class city 580. Differential tax zones 590. Limited property taxing power for second class cities Sec.29.45.550.Cities outside boroughs. Home rule and first class cities outside boroughs may assess,levy,and collect a property tax.A property tax if levied must be assessed,levied,and collected as provided by AS 29.45.010—29.45.500.(§ 12 ch 74 SLA 1985) Sec.29.45.560.Cities inside boroughs. Home rule and first class cities inside boroughs may levy a property tax.A property tax,if levied,is subject to AS 29.45.010—29.45.050,29.45.090—29.45.100. 29.45.250,29.45.400—29.45.440 and 29.45.460—29.45.500.The council shall by June I5 of each year present to the assembly a statement of the city's rate of levy unless a different date is agreed upon by the borough and city.(§ 12 ch 74 SLA 1985) 163 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 60 of 92 AGENDA ITEM #13.C.1. • • LEVESQUE LAW GROUP, LLC 3380 C Street.Suite 202 Anchorage.Alaska 99503 Phone: (907)261-8935 Sac (206)309-0667 Email joe @levesquelawgroup.com MEMORANDUM OPINION TO: Bill Roberts Kodiak Island Borough Assessor - FROM: Joseph N.Levesque Borough Attorney Cr DATE: April 4, 2015 RE: Proposed Revisions to KIBC Chapter 3.35 The Kodiak Island Borough ("Borough") has requested an opinion regarding the legal sufficiency of certain proposed amendments to Chapter 3.35 of the Kodiak Island Borough Code ("KIBC"). In addition to significantly simplifying the KIBC provisions governing its tax foreclosure process, the proposed amendments create the rebuttable presumption that mobile homes are owned by the owner of the land upon which they are situated, and grant the Borough broad discretion to choose an appropriate method for enforcing tax liens against mobile homes. Notably, the proposed amendments also prohibit the Borough from foreclosing upon property that is "determined...to be contaminated or found to contain hazardous materials,' and authorize it in those instances to instead seek enforcement of delinquent taxes by means of civil action.' General Summary and Overview As this Memorandum explains, the proposed amendments relating to the Borough's general foreclosure procedures appear to accurately describe, and thus provide legally sufficient notice to taxpayers regarding the Borough's procedures. Although this set of proposed amendments, if enacted, would likely be valid and 'Borough staff have also proposed minor amendments to several other sections of Chapter 3.35. Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 61 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLG April 4,2015 Page 12 enforceable,the Borough should nonetheless consider drafting detailed policies that more clearly establish its foreclosure practices, to ensure that its process is consistent for all similarly-situated property owners within the Borough. Other proposed amendments would require the Borough to enforce real property tax liens against mobile homes that are attached to land that is also owned by the owner of the mobile home through the foreclosure process. In contrast, the proposed amendments provide that delinquent taxes assessed against mobile homes that are attached to land that is not owned by the owner of the mobile home could be collected either by means of foreclosure, or by judicial action. Because this enforcement scheme is specifically authorized by Alaska law, this proposed revision, if enacted, would also likely be valid and enforceable. However, the Borough should develop and incorporate such standards into its detailed foreclosure policies. Additionally,one proposed amendment would require the"owners of mobile home parks or any other properties to which are attached one or more mobile homes that do not belong to the owner of the underlying land" to submit a report to the Borough that provides the names and contact information for the owners of those mobile homes. In the absence of information showing that a mobile home does not belong to the owner of the land upon which it is situated, it would be assessed to the land owner. Because the proposed amendment is probably consistent with.the general rule that real property is assessed to the record owner, it would likely be valid and enforceable if enacted. Finally, proposed KIBC 3.35.160(C) would prohibit the Borough from foreclosing upon property that has been determined to be "contaminated or found to contain hazardous materials...." Instead, the proposed section provides that the Borough may instead seek to collect any delinquent tax with respect to such properties by means of judicial action. While this amendment would restrict the Borough's ability to foreclose against all such properties, if enacted it would likely be valid and enforceable. Proposed Revisions to the Borough's.Foreclosure Ordinances KIBC 3.35.160 through 3.35.260 currently set forth a detailed description of the Borough's foreclosure process:Borough staff has proposed amendments that would remove sections 3.35.170 through 3.35.260 in their entirety, and would revise section _ 3.35.160 to provide a simplified summary of the Borough's authority to enforce delinquent real property tax obligations through the foreclosure procedures prescribed by Alaska Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 62 of 92 • AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLC April 4,2015 Page 13 law.2 It does not appear that the removal of KIBC 3.35.170 through 3.35.260 would conflict with any provision of Alaska law or local ordinance.Although the Alaska Statutes governing the municipal tax foreclosure process do require that certain steps must themselves be authorized by ordinance,3 they do not mandate that municipalities must adopt code provisions that set forth specific details to taxpayers regarding the municipality's foreclosure procedures.Similarly,the KIBC contains no provision requiring that the Borough's foreclosure procedures be explicitly set forth. In addition, it does not appear that-the Alaska Supreme Court has ever interpreted the Alaska Statutes as requiring that municipalities do so. Further, the proposed revisions provide actual notice to the Borough's taxpayers that delinquent real property taxes will be enforced through foreclosure`that the Borough has adopted the foreclosure procedures prescribed by Alaska law, and incorporate the applicable Alaska Statutes by express references Importantly, other second-class boroughs in Alaska have elected to adopt general foreclosure provisions in lieu of detailed descriptions of the borough's foreclosure process 6 Because the proposed amendments would remove the current, more comprehensive description of the Borough's foreclosure process. it should ensure that it has in place a set of policies and procedures to govern and guide its annual foreclosures. Not only would this ensure that foreclosures are processed uniformly as to all property owners, it would serve to insulate the Borough against challenges by taxpayers that assert disparate treatment, and could potentially give rise to due process and other constitutional claims. Both the Matanuska-Susitna Borough and the Fairbanks North Star Borough appear to have drafted and implemented such policy guides, which I have attached to this Memorandum for your reference. It is important to note that, if adopted, the proposed revisions to KIBC 3.35.160- .260 would relieve the Borough from several specific foreclosure procedures imposed by 2 Municipal tax foreclosures are authorized and governed by AS 29.45.320-.490. J For example.AS 29.45.460 provides that,prior to selling a tax-foreclosed property that has been deeded to and held by a municipality for more than 10 years,the governing body must first determine by ordinance whether it'shall be retained for a public purpose'or'that apublic need does not exist? 'Proposed KIBC 3.35.160(A)provides that,'The borough shall prepare an annual foreclosure list pursuant to A.S.29.45.330? s Proposed KIBC 3.35.160(6)provides that,'The provisions of A.S.29.45.330 through A.S.29.45 490 apply to borough delinquent property tax foreclosures' 6 See Matanuska-Susitna Borough Code 3.15.250. Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 63 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLC April 4,2015 Page 14 ordinance, but not otherwise required by Alaska law. For example,the current version of KIBC 3.35.160 requires that the Borough "make up a roll in duplicate of all real property subject to foreclosure," while state statute ostensibly requires that only one foreclosure list be prepared? KIBC 3.35.160 also currently provides that the Assembly must direct Borough staff to prepare the foreclosure list,while the proposed revision would authorize Borough staff to do so without formal directive.The Borough would no longer be required to comply with several other various procedures.8 The Enforcement of Real Property Taxes With Respect to Mobile Homes • The Borough currently considers most mobile homes to be real property for taxation purposes.a The second notable set of revisions that Borough staff has proposed would essentially assign an enforcement procedure for the collection of real property taxes with respect to mobile homes depending upon whether there is a unity of ownership between the mobile home and the land to which it is attached. According to the proposed revisions, if there is unity of ownership between the mobile home and the land, real property taxes would be enforced through foreclosure.10 When that unity does not exist, the proposed revisions would permit the Borough to recover unpaid taxes through civil action against the taxpayer, "in addition to other remedies available to enforce the lien."" It appears clear that the Borough is permitted to enforce real property taxes for mobile homes through civil actions. Although Alaska law generally requires that "municipalit[ies]shall enforce delinquent real property tax liens by annual foreclosure," it expressly provides that real property taxes assessed with respect to mobile homes may be enforced "by.a personal action against the delinquent taxpayer brought in the district or superior court."12 Similarly, the Borough is likely permitted to foreclose upon a mobile 'A.S.29.45.330(a)(1). These include,but are by no means limited to,the requirements that:(1)the Assembly direct Borough staff to publish the annual notice of foreclosure(KIBC 3.35.170):(2)that the first date of publication of the notice must be on the same date that the foreclosure list and petition of foreclosure are submitted to the superior court(KIBC 3.35.180(A));(3)that the Assembly direct Borough staff to post the notice in three public places if required(KIBC 3.35.180(B));and,(4)that the notice must also be posted at the front door of the post office(KIBC 3.35.180(8)). KIBC 3.35.020(0)(2). 10 See Proposed KIBC 3.35.150(B). '1 Id 12 A.S.29.45.320. Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 64 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLC April 4,2015 Page IS home even absent a unity of ownership with the land upon which it is situated.13 Alaska law expressly authorizes the collection of real property taxes for mobile homes by means of personal action against the taxpayer, and the proposed amendment to KIBC 135.150(6)clearly and unambiguously notifies taxpayers that the Borough has elected to do so when there exists no unity of ownership between a mobile home and the land to which it is attached.Therefore,the proposed amendment to KIBC 3.35.150(B), if adopted,would likely be valid and enforceable. The Responsibilities of Mobile Home Park Owners The Borough has also proposed an amendment to KIBC 3.35.040(A),which would add a new subsection 3.That proposed amendment would create a new requirement for the owners of mobile home parks, as well as the owners of any other land to which any mobile home not owned by the landowner is attached. Pursuant to proposed KIBC 3.35.040(A)(3), and owners would be required to submit an annual report to the Borough that identifies the mobile homes that do not belong to the landowner, and provides the Borough with the names and addresses of the true owners, if known. The proposed amendment provides that, unless the Borough can attribute ownership to another, mobile homes will be presumed to be the property of owner of the land to which they are attached,and assessed accordingly. This proposed amendment is similar to a provision of the Matanuska-Susitna Borough Code ("MSBC"), which requires those who lease, rent, or permit individuals to locate a mobile home on their property to provide the borough with the names and mailing address of the mobile home's owners,upon the assessor's request."However,proposed KIBC 3.35.040(A)(3)is different in two primary respects. First, unlike the MSBC,it places the burden on the landowner to annually report the names and contact information for the owners of mobile homes. Second, it explicitly provides that, if the landowner fails to do so, each mobile home for which the Borough is unable to identify an alternate owner of record will be presumed as belonging to the landowner,and will be assessed as such. Nonetheless, if enacted, proposed KIBC 3.35.040(A)(3) would probably be valid '3 See Cool Homes v.Fairbanks North Star Borough.860 P.2d 1248,1254-1255(Alaska 1993)(holding that the Borough was permitted to foreclose on houses affixed to land,despite the fact that there was no unity of ownership.). "See Matanuska-Susitna Borough Code 3.15.160(6). Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 65 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLC • April 4,2015 Page 16 and enforceable. As a preliminary matter, it does not appear to conflict with Alaska's statutes that govern municipal taxation, or the Borough's own ordinances. Further,requiring land owners to provide mobile home ownership information may be the only reasonable method of determining that ownership for taxation purposes. Alaska law provides that"Real property is assessed to the record owner."15 The record owner for real property is typically confirmed by reviewing the information regarding transfers of ownership interests in real property obtained from the district recorder's office.16 Although Alaska law provides that most mobile homes that are attached to land or to public utilities are by default considered real property for municipal tax purposes,17 ownership cannot be reasonably confirmed using district recorder information when they are attached to land that the owner has leased, rented, or obtained permission to use. Additionally, even if a landowner is assessed real property tax that includes assessments for mobile homes that the landowner does not own, several safeguards ensure that the assessment may be corrected. First, the proposed amendment makes it clear that the Borough will only employ the presumption of ownership if it is unable to otherwise confirm that a mobile home belongs to another owner of record.18 The Borough • Assessor has interpreted this provision as permitting landowners to rebut the proposed section's presumption of ownership by either identifying a mobile home's last known owner of record. Landowners may also simply explain that the mobile home does not belong to the landowner, and that the landowner is unsure of the true owner's identity, in which case the property may be assessed to"unknown."19 Finally, the KIBC creates several opportunities for landowners to contest tax assessments that they believe to be in error. KIBC 3.35.100 provides that the Borough may adjust tax bills when they are shown to be erroneous any time before the Board of Equalization certifies the assessment roll. KIBC 3.35.050(C)provides that a taxpayer who believes that an assessment is erroneous may also appeal it to the Board of Equalization. Thus,notwithstanding the affirmative obligation that would be imposed by proposed KIBC 3.35.040(A)(3), and the presumption of ownership arising from the Borough's failure to confirm that a mobile home has another owner of record, landowners would have ample opportunity to explain their non-ownership,and to accordingly have their tax bills adjusted "A.S.29.45.150(b). 16 Id. A.S.29.45.070. 15 See Proposed KIBC 3.35.040(A)(3). 19 KIBC 3.35.040(A)(1). Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 66 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP, LLC April 4,2015 Page 17 • to remove any erroneous assessments. Prohibition Against Foreclosing Upon.Contaminated Properties Another notable proposed amendment prohibits the Borough from foreclosing tax liens against certain property known to be contaminated. Proposed KIBC 3.35.160(C) provides: The borough shall not foreclose against property that it knows has been determined by a federal,state,or local agency to be contaminated or found to contain hazardous materials subject to regulation by a federal, state or local government.The borough may proceed with a personal action against the delinquent taxpayer to collect the tax, costs,penalty and interest. It is important to note that,if enacted in its current form,the proposed amendment would absolutely prevent the Borough from foreclosing upon any property that it knows has been deemed contaminated. It would not appear to affect the Borough's ownership of property that it learns is contaminated only after taking ownership through foreclosure. The proposed amendment appears to be intended to insulate the Borough from the financial burden of insuring and maintaining contaminated properties during the period of ownership,especially if the contamination prevents their sale. However,this provision would not permit the Borough to foreclose on a known contaminated property even if the costs of insuring,maintaining and rehabilitating the property would be outweighed by the potential economic or public benefit to the Borough. • Conclusion Borough staff has proposed several amendments to Chapter 3.35 of the KIBC. While most are minor, four sets of proposed amendments are notable. The first of these would remove sections 3.35.170-.260 in their entirety, and replace KIBC 3.35.160 with a brief summary of the Borough's foreclosure process,which incorporates the requirements of the applicable Alaska Statutes by reference. The adoption of this amendment would significantly modified certain foreclosure procedures that the Borough has codified, but which are not required by Alaska law.As this Memorandum explains,these amendments, if adopted, would likely be valid and legally enforceable. However, because they would remove from the Code more detailed descriptions of the Borough's foreclosure process, the Borough should ensure that it has in place comprehensive policies and procedures to Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 67 of 92 AGENDA ITEM #13.C.1. LEVESQUE LAW GROUP,LLC April 4,2015 Page 8 govern and guide the execution of its annual foreclosures. Another amendment would permit the Borough to enforce real property taxes that are assessed with respect to mobile homes that are attached to land not owned by the taxpayer by means of judicial action. Because this enforcement method is expressly authorized by statute, the amendment, if adopted,would likely be valid and enforceable. The third notable amendment would require landowners who permit mobile homes owned by others to be attached to their property to submit an annual report to the Borough. That report would identify those mobile homes not owned by the landowner, and provide the Borough with the name, address, and other contact information for the mobile home's owner of record, if that information is known. Proposed KIBC 3.35.040(A)(3)further provides that,if the Borough does not receive that information,and the Assessor is unable to confirm ownership by another, the mobile homes will be assessed to the owner of the land to which they are attached. Requiring this information from such landowners may be the only reasonable means of confirming ownership of mobile homes that are situated on land that is not also owned by the mobile home's owner. Further, there exists ample opportunity for a landowner who does not submit the required report, and is assessed real property taxes for mobile homes that are owned by others, to appeal the assessment. Consequently, this proposed amendment, if adopted, would also likely be valid and enforceable. Finally,a proposed amendment to KIBC 3.35.160(C)would absolutely prohibit the Borough from foreclosing upon properties that it knows to be contaminated, or to contain hazardous materials. The proposed amendment would serve to insulate the Borough against the costs of insuring, maintaining, and potentially rehabilitating such properties after acquiring them. However, as currently written the prohibition is absolute, even in those instances in which the potential economic or public benefit of acquiring the property is outweighed by the Borough's costs of carrying and remedying the contamination. Ordinance No. FY2015-10 Amending Various Sections in-Title 3.:. Page 68 of 92 • AGENDA ITEM #13.C.1. KODIAK ISLAND BOROUGH Foreclosure Procedures/Tracking Responsibility I Item Completion Authority Finance I Prepares preliminary procedure tracking for TYXXXX Foreclosure process. Finance A foreclosure and publication fee shall be added to each property on the Foreclosure List. A proportionate share of the costs of publication and KIB 3.35.160 foreclosure shall be paid in clearing delinquencies.If delinquent tax AS 29.45.340 payments,together with penalties,interest,and costs,are received before AS 29.45.440 filing the Foreclosure List and Petition with the Superior Court,those properties shall be removed from the list and the draft Petition. Finance/ Notice of the foreclosure proceedings and filing of Petition for Judgment with Published: Attorney the Superior Court shall be given by four(4)weekly publications in the official newspaper designated by the Assembly. Wk 1 KIB 3.35.160 Proposed Publication Dates: Week 1 Wk 2 AS.29.45.330 Week 2 Wk 3 Week 3 Wk 4 Week 4 Attorney On the day designated in the Notice published,a certified copy of the Filed with the Foreclosure List together with a Petition for Judgment of Foreclosure shall court KIB 3.35.160 be presented to the Superior Court. AS 29.45.360 Proposed Date: Signed by Court: Finance The Treasurer shall,within 10 days after the first date of publication in the Mailed: newspaper,mail to each person to whom a tract is assessed,at his last KIB 3.35.160 known address,a notice describing the property and the amount due as ' AS 29.45.330 stated in the Petition for Judgment. Proposed Date: Finance ' Treasurer shall send written notice by registered mail to any lien holder who has made a request for notice of a foreclosure list. KIB 3.35.160 Proposed Date: AS 29.45.350 Any person having an interest in a lot on the Foreclosure List may file an answer within 30 days after the date of last publication. KIB 3.35.160 Proposed Last date to file Objections: AS 29.45.370 Attorney A Motion for Transfer of Property to Borough is filed with the Superior Court, Done: along with an Affidavit of Mailing and Publication(by Finance Director) KIB 3.35.160 certifying to mailing Notices of Foreclosure to property owners and Proof of AS 29.45.390 Publication,attaching Proofs of Publication from newspaper. Also prepare and file a proposed Order and Judgment for the Court's signature. Proposed Date: Court The Superior Court shall enter Judgment of Foreclosure(begin one year KIB 3.35.160 redemption period) AS 29.45.380 Estimated Date: Finance Obtain Certified Copy of Judgment of Foreclosure from Superior Court. Send Certified Judgment of Foreclosure to District Recording Office,with KIB 3.35.160 original recorded Judgment to be returned to Attomey. AS 29.45.390 BEGINNING OF ONE-YEAR REDEMPTION PERIOD Date: KIB 3.35.160 Begins from date of Court's Entry of Judgment AS 29.45.400 (Estimated Date: ) Finance Issue Certificates of Redemption to those who redeem properties under As Needed KIB 3.35.160 Judgment of Foreclosure. Have Certificates Recorded at District Recording AS 29.45.410 Office. Page it Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 69 of 92 AGENDA ITEM #13.C.1. KODIAK ISLAND BOROUGH Foreclosure Procedures/Tracking Responsibility - Item Completion • Authority - - - • Finance Order title search for delinquent properties not yet redeemed.Add cost to KIB 3.35.160 properties. AS 29.45.400 Proposed Date: • Finance Publish Notice of Expiration of Redemption Period in newspaper for four(4) Published: consecutive weeks.(Must be commenced no sooner than 30 days from end KIB 3.35.160 of Redemption period(estimated to be ) Wk 1 AS 29.45.440 Proposed Publication Dates: Week 1 Wk 2 Week2 Wk 3 Week 3 Wk 4 Week 4 Finance Mail certified letters to property owners and interested parties(i.e.,lien holders)providing a copy of the notice published within 5 days of first KIB 3.35.160 publication date. AS 29.45.440 Proposed Date: END OF ONE-YEAR REDEMPTION PERIOD (Estimated Date: Finance/Land Inform Land Resource Manager of unredeemed properties and create Resource Manager subproject numbers for expense tracking. Land Resource Manager should perform inspection of properties anticipated to be deeded. Identify any properties with abatement issues',properties currently occupied;properties that may serve a community purpose; properties that may be contaminated;identify properties of any general concern if deeded to the Borough. Finance/Borough The manager may remove property from the foreclosure list where Manager/Attorney contamination is found,when financial benefits of foreclosure are exceeded by the costs of foreclosure and liabilities of the ownership of the property KIB 3.35.160 involved. The Borough shall then collect taxes due,plus penalties,costs S interest by a personal action against the landowner. Removal from the Foreclosure List must be made before execution of a deed to the Borough. Proposed Date: Attorney File with Superior Court Satisfaction of Judgment for any properties KIB 3.35.160 redeemed to correct Court record. AS 29.45.440 Attorney Prepare and file with Superior Court Motion for Issuance of Clerk's Deed, Done: along with supporting Affidavit of Mailing and Publication signed by KIB 3.35.160 Treasurer/Finance Director(attaching Affidavits of Publication from AS 29.45.450 newspaper),and proposed Order for Issuance of Clerk's Deed and proposed Clerk's Deed. Proposed Date: Attorney Once Clerk's Deed is issued by Superior Court,send Certified Copy to be Done: KIS 3.35.160 Recorded at District Recorder's Office • AS 29.45.450 Finance Notify Assessing and arrange for KIB designation on Clerk's Deeded properties in PACS • Page 12 Ordinance No. FY2015-10 Amending Various Sections in Title 3... • Page 70 of 92 AGENDA ITEM #13.C.1. KODIAK ISLAND BOROUGH Foreclosure Procedures/Tracking Responsibility Item Completion Authority • Finance/Engineering Suggested precautions and risk management to be taken on properties and Fadlities/Land deeded to the Borough: Resource Manger 1. Extend liability insurance to cover properties deeded to Borough 2. Wnterize&Board Up any abandoned properties with appropriate notice posted as Foreclosed Property owned by the Borough. 3. Establish a policy of'no return'once the property has been abandoned. 4. Make determination on handling of properties currently occupied, such as liability for utilities,etc. Borough Manager/ Consider if wish to hold the properties for 2 year period or 10 year period. FinanceJLand Resource Manger Determine how to dispose of properties deeded to the Borough: 1) Select any properties to be kept by Borough for public or community KIB 3.35.160 purpose; AS 29.45.450(d) 2) Select any properties to be condemned; AS 29.45.460(d) 3) Select properties to be sold at foreclosure sale; 4) Select properties to hold in foreclosure inventory. Finance Prepare Ordinance for Assembly action on properties to be retained for KIB 3.35.160 public purpose and to be sold. AS 29.45.460 Finance Send certified letter to former record property owner a copy of published notice of hearing of an ordinance to consider how to dispose of property KIB 3.35.160 Within 5 days of 1°publication of notice of hearing(on Ordinance) AS 29.45.460 Proposed Date: (Notice not required when property has been held more than 10 years after the close of Redemption period.) • 1 Page 13 Ordinance No. FY2015-10 Amending Various Sections in Title 3... Page 71 of 92 AGENDA ITEM #13.C.2. • KODIAK ISLAND BOROUGH f1.d77 : AGENDA STATEMENT t :<„ i./°i5 APRIL 16, 2015 „ ,,,r y_, _i ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax. ORIGINATOR: Bill Roberts FISCAL IMPACT: No FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: Boats and vessels with an overall length longer than 20 feet, measured bow to stern, and used for commercial purposes are currently taxed at a rate of$1 per foot. One purpose of this tax was to track vessels for future ad valorem taxation. In addition to the vessel personal property tax, the Borough collects both raw fish tax and severance tax from the fishing fleet. • The tax rate of$1 per foot in tax does not provide enough funds to make the administration and maintenance of these personal property accounts cost effective for the borough. RECOMMENDED MOTION: Move to adopt Ordinance FY2015-11 in first reading to advance to public hearing at the next regular meeting of the Assembly. Kodiak Island Borough Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 72 of 92 AGENDA ITEM #13.C.2. 1 Introduced by: Borough Assembly Requested by. Borough Manager 2 Dratted by: Borough Assessor 3 Introduced: 04/16/2015 4 Pubic Hearing: 5 Adopted: 6 KODIAK ISLAND BOROUGH 7 ORDINANCE NO. FY2015-11 8 9 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH AMENDING VARIOUS SECTIONS IN TITLE 3 II REVENUE AND FINANCE CHAPTER 3.40 PERSONAL 12 PROPERTY TAX 13 14 WHEREAS, AS 29.45.050(b)(2) allows a municipality to classify as to type and exempt or 15 partially exempt some or all types of personal property from ad valorem taxes;and 16 17 WHEREAS, KIBC 3.40.070 was written with the intention of taxing boats and vessels at a 18 rate determined annually by the assembly during the budget adoption process for boats with 19 an overall length longer than 20 feet, measured bow to stern, rather than on an ad valorem 20 basis;and 21 22 WHEREAS, the current tax rate on boats and vessels is 51 per foot with boats that are 23 equal to or less than 20 feet long exempt from tax;and 24 25 WHEREAS, the current tax rate of 51 per foot does not provide enough funds to make the 26 administration and maintenance of these accounts cost effective for the borough;and 27 28 WHEREAS, the borough collects both raw fish tax and severance tax from the fishing fleet; 29 and 30 31 WHEREAS, it is the intent of the Kodiak Island Borough Assembly to exempt boats and 32 vessels used for commercial purposes from property tax. 33 34 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 35 BOROUGH THAT: 36 37 Section 1: This ordinance is of a general and permanent nature and shall become a part of 38 the Kodiak Island Borough Code of Ordinances. 39 40 Section 2: Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax is hereby ' 41 amended as follows: 42 43 44 Kodiak Island Borough,Alaska Ordinance No.FY2015-11 Page 1 of 6 Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 73 of 92 AGENDA ITEM #13.C.2. 45 Sections: 46 • 3.40.010 Property subject to taxation. 47 3.40.020 Exemptions. 48 3.40.030 Assessment return. 49 3.40.040 Tax situs of personal property. 50 3.40.050 Liability for and collection of personal property taxes. 51 3.40.060 Penalties and interest. 52 - - -- - - --- - --- 53 3.40.08070 Classification of aircraft. 54 55 ' For statutory provisions granting the power to assess and collect taxes, see AS 29.35.170; 56 for provisions governing municipal assessment and taxation generally,see AS 29.45. 57 58 Prior legislation: Code 1974 §§ 3.24.060, 3.24.070, 3.24.080 and 3.24.090 and Ords. 83-53- 59 0,84-25-0,96-21 and 2007-16. 60 61 3.40.010 Property subject to taxation. 62 A.Tangible personal property with a tax situs within the borough is subject to taxation,except 63 where otherwise exempted by borough ordinance or state statute.Tangible personal property 64 includes all personal property including, but not limited to, furniture, furnishings, fixtures, 65 machinery,equipment used by a business,stock animals,watercraft,aircraft,tools,dies,jigs, 66 • patterns and stock used in trade (including inventories, supplies, materials in process, and 67 other similar items). 68 B. All private interests in personal property which is otherwise exempt due to ownership by 69 the federal government, state, borough,other state municipal subdivision or other tax-exempt 70 entity is taxable under this code to the extent of that interest. (Ord. FY2014-10 §11, 2014; 71 Ord.FY2011-07§2,2010]. 72 • 73 3.40.020 Exemptions. 74 A. Individual personal property utilized solely and exclusively for personal, nonbusiness, 75 noncommercial, nonagricultural and nonincome producing uses or purposes is exempt from 76 taxation under this chapter. This includes aircraft, boats and vessels used for nonbusiness, 77 nonagricultural,noncommercial and nonincome producing purposes. 78 B.A taxpayer who files a timely business property return with the assessor shall be exempted 79 the first$20,000 of assessed value of business personal property. For a taxpayer with more 80 than one business personal property tax account, the$20,000 exemption shall be distributed 81 pro rata among all of the taxpayer accounts,based on the proportion of the assessed value in 82 each account to the total assessed value of that taxpayer's business personal property. 83 C. Pursuant to AS 29.45.050(b)(2),the inventories of businesses possessing a valid business 84 license from the state of Alaska are exempt from the tax imposed by this chapter. As used 85 herein, "inventories"means personal property in the hands of a retail or wholesale merchant 86 held for sale or personal property held in the form of raw materials or component parts for the 87 manufacture or production of goods. Kodiak Island.Borough,Alaska Ordinance No. FY2015-11 Page 2 of Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 74 of 92 AGENDA ITEM #13.C.2. 88 D. Pursuant to AS 29.45.050(b)(2), boats and vessels used for commercial purposes 89 such as commercial fishing, charter boat fishing, or freight hauling, and fishing gear 90 (i.e., nets, seines, crab pots, long lines, trawls) and any or all associated paraphernalia 91 utilized for commercial fishing is exempt from property tax. [Ord. FY2014-10 §12, 2014; 92 amended during 7/11 supplement;Ord.FY2011-07§2,2010). 93 94 3.40.030 Assessment return. 95 A. Every person with ownership in taxable personal property shall submit to the borough 96 assessor a personal property return of any property owned by him, or in which he has an 97 interest, and of the property held or controlled by him in a representative capacity, in the 98 manner prescribed,which return shall be based on property values existing as of the first day 99 of January of the year for which the return is made. The person making the return in every 100 case shall state an address to which all notices required to be given to him under this section 101 may be mailed or delivered.The return shall show the nature;quantity; description, including 102 date of manufacture; amount; value; purchase price, new or used; depreciable basis; and 103 current condition of all personal property, the place where the property is situated, and said 104 return shall be in such form and include such additional information as the assessor may 105 prescribe, and shall be signed and verified under oath by the person liable, or his or its 106 authorized agent or representative. 107 B. Said return shall be filed on or before the fifteenth day of January of each tax year, unless 108 the property owner requests, and the assessor approves, an extension that may not exceed 109 30 days.The extension must be requested prior to the January 15th due date. 110 C.The borough assessor may, by notice in writing to any person by whom a return has been III made, require from him a further return containing additional details and more explicit 112 particulars and,upon receipt of the notice,that person shall comply fully with its requirements 113 within 30 days. 114 D. In the event of any person failing, refusing, or neglecting to make or file said personal 115 property return of property owned by him, as required herein, the assessor shall make an 116 assessment which shall be as fair and equitable as he is able to make from the best 117 information in his possession concerning said property and this assessment shall be prima 118 fade evidence for all legal purposes and any related proceedings. (AS 29.45.130(a)) [Ord. 119 FY2014-10§13, 2014; Ord. FY2011-07 §2, 2010; Ord. FY2011-05§2, 2010; Ord. 92-25§2, 120 1992;prior code Ch.3 subch_2§1.Formerly§3.40.010.Code 1974§3.24.0101. 121 122 3.40.040 Tax situs of personal property. 123 A.The tax situs of personal property is presumed to be the Kodiak Island Borough if: 124 1. It is located within the borough on January 1st of the assessment year, and has been 125 located in the borough for more than a temporary period in the year prior to January;or 126 2. It is normally located within the borough, even though it is outside the borough on 127 January 1st of the assessment year, if it is located outside the borough for only a 128 temporary period of time during the year prior to January 1st of the assessment year;or 129 3. It is not located in the borough on January 1st, but has been kept or used within the 130 borough for any 60 days during the year preceding the January 1st assessment date;or Kodiak Island Borough,Alaska Ordinance No.FY2015-11 Page 3 of 6 Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 75 of 92 AGENDA ITEM #13.C.2. 131 4. It normally is returned to the borough between uses elsewhere, and is not located in 132 any one place for more than a temporary period. 133 B. For purposes of this code,"temporary period"is defined as 60 days. [Ord.FY2014-10§14, 134 2014; Ord. FY2011-07 §2, 2010; Ord. 85-12-0 §1, 1985. Formerly §3.40.015. Code 1974 135 §3.24.015]. 136 137 3.40.050 Liability for and collection of personal property taxes. 138 A. The owner of personal property assessed is personally liable for the amount of taxes 139 assessed against the property. The tax, together with penalty and interest, may be collected 140 in a personal action brought in the name of the borough. 141 B. If the tax on personal property is not paid when due, the borough may, in addition to other 142 remedies available, enforce the tax lien by distraint and sale of the property after first making 143 demand of the person assessed for the amount of the tax, penalty, and interest.The demand 144 shall be in writing addressed to the person whose name appears on the last assessment roll 145 as the owner of the property, describing the personal property assessed and the amount of 146 the tax,penalty,and interest and demanding that the total be paid within 10 days after service 147 of the demand personally or by registered mail. 148 C. If the tax has not been paid after the expiration of 10 days from service of demand, the 149 clerk may issue a warrant directing a peace officer to seize the personal property for which 150 the tax was levied and to sell it at public auction after at least 15 days' notice of the sale by 151 posting and publication. If the proceeds from the property sold are not sufficient to satisfy the • 152 tax, penalty, interest and costs of sale, the warrant may authorize the seizure of other • 153 personal property sufficient to satisfy the tax, penalty,interest,and costs of sale. 154 D. The borough has the right to seek payment of any unpaid portion of the tax, penalty and 155 interest by all methods available under law. [Ord. FY2014-10§15, 2014;Ord. FY2011-07§2, 156 2010; Ord. 74-12-0§1, 1974; prior code Ch. 3 subch. 2§2. Formerly§3.40.020. Code 1974 157 §3.24.020]. 158 159 3.40.060 Penalties and interest. 160 A.A person who files a completed return after the filing deadline, but before the mailing of the 161 assessment notices shall,in addition to other penalties provided by law,be liable for a penalty 162 of five percent of the tax assessed against said personal property for that tax year. 163 B.A person who,either for himself or as agent for another,or as'agent,officer, or manager of 164 a corporation,fails to file a return as required by this code prior to February 28th of the current 165 assessment year shall be fined a penalty in the amount of$300.00. 166 C. A person who, either on his own behalf, as agent for another, or as the agent, officer, or 167 manager of a corporation, knowingly makes a false statement, return or list required by this 168 section relating to the amount, kind, or value of personal property subject to taxation by the 169 borough with intent to avoid or evade the assessment on taxation of the property,or part of it, 170 is guilty of a violation of this chapter, and this action is punishable by a fine of$1,000. (AS 171 29.45.140).[Ord.FY2014-10§16,2014;Ord. FY2011-07§2,2010;Ord.93-36§4, 1993;Ord. 172 92-25 §2, 1992; Ord. 74-8-0 §3, 1974; Ord. 69-4-0 §1, 1969; Ord. 67-11-0 §1, 1967; prior 173 code Ch.3 subch.2§3.Formerly§3.40.030.Code 1974§3.24.030). 174 Kodiak Island Borough,Alaska Ordinance No.-FY2015-11 Page 4 of 6 Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 76 of 92 AGENDA ITEM #13.C.2. 175 3.40.070 Cla . 177 - -''- :: . .. . .. . .. .......: ..•.. •: ...-.... : 179 -- - - • - - - .. . . .. . _ - - , .. . . . . . .. . . . . . . 180 . . .. . .. . . . .. . -. •... _... 181 §31 .2�^'131r 182 183 3.40.08070 Classification of aircraft. 184 A. Pursuant to AS 29.45.050(b)(2), for purposes of taxation, commercial aircraft that have 185 been issued an N number by the Federal Aviation Administration ("FAA') by January 1st of 186 the tax year and are less than 12,500 pounds takeoff weight shall be totally exempted from ad 187 valorem taxes and shall be taxed at the rate determined annually by the assembly during the 188 budget adoption process. 189 B.The owner of record of an aircraft that has been dismantled,destroyed or crashed and the 190 FAA N number has been retained by the aircraft's owner of record may submit to the 191 assessor proof of condition that would allow for taxation of that aircraft, if approved by the 192 assessor, at a rate determined by the assembly during the budget adoption process.Aircraft 193 for which such registration or licensing has lapsed or that has not passed the annual 194 inspection required by the FAA shall not qualify on this basis alone for ad valorem taxation 195 unless it has been dismantled,destroyed or crashed. 196 C.Commercial aircraft with a gross takeoff weight of more than 12,500 pounds shall be taxed 197 on an ad valorem basis and in accordance with the Kodiak Island Borough landing schedule 198 formula.The KIB landing schedule formula provides for the prorated calculation of scheduled 199 aircraft by dividing the total hours in a year into the total time aircraft operated by a scheduled 200 carrier are in the Kodiak Island Borough, and multiplying the result by the assessed value of 201 each aircraft. 202 O.Definitions.For purposes of this section: 203 'Aircraft'means any engine powered contrivance invented, used, or designed to navigate,or 204 fly in,the air and that is capable of being manned and is required by the FAA to be registered 205 and certified in order to be manned. 206 'Commercial aircraft'means any aircraft transporting passengers and/or cargo or is employed 207 for fish spotting, agricultural, aquacultural or other purposes for some payment, or other 208 consideration,including money or services rendered. 209 'Crashed' means aircraft for which only parts remain that, due to their condition, can no 210 longer be assembled to create any contrivable aircraft. This shall be evidenced by an FAA 211 accident report and/or copy of an insurance claim that determines the aircraft to be a total 212 loss. 213 'Destroyed'means aircraft that have been damaged by age,weather, neglect and/or external 214 influences outside the owner's control, and only unusable parts remain that, due to their 215 condition, can no longer be assembled to create any contrivable aircraft. This shall be 216 evidenced by photographs and a physical inspection by the borough assessing staff appraiser 217 if deemed necessary by the borough assessor. Kodiak Island Borough,Alaska Ordinance No.FY2015-11 Page 5 of 6 Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 77 of 92 AGENDA ITEM #13.C.2. • 218 `Dismantled" means aircraft that have been voluntarily disassembled and only parts remain 219 that can no longer be assembled to create any contrivable aircraft. Evidence such as 220 photographs and a physical inspection by the borough assessing staff appraiser shall be 221 provided or allowed if deemed necessary by the borough assessor. 222 E. An aircraft owner may appeal the determination of the borough assessor under 223 subsections B and C of this section using the same procedures for appeal of real and 224 personal property assessments as set out in KIBC 3.35.040(C)(3) and 3.35.050(C). [Ord. 225 FY2011-07§2,20101. 226 227 Section 3: This ordinance shall take effect on January 1,2016. 228 229 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 230 THIS DAY OF 2015 231 KODIAK ISLAND BOROUGH 232 233 234 235 Jerrol Friend,Borough Mayor 236 237 ATTEST: 238 239 240 241 Nova M.Javier,MMC, Borough Clerk Kodiak Island Borough,Alaska Ordinance No,FY2015-11 Page 6 of 6 Ordinance No. FY2015-11 Amending Various Sections in Title 3... Page 78 of 92 AGENDA ITEM #17.A.1. Service Area No. 1 Board RECEIVED Regular Meeting March 10,2015 7:00 p.m. APR 6 2015 Kodiak Island Borough Conference Room 1. CALL TO ORDER BOROUGH CLERK'S OFFICE KODIAK,ALASKA Chair Scott Arndt called the meeting to order at 7:01 p.m. 2. ROLL CALL Board Secretary Jenny Clay conducted a roll call and present were Chair Scott Arndt, Board Members Paul Hansen, Curtis Howell, Dennis Symmons and Mike Sirofchuk. A quorum was established. Board members Natasha Hayden and Bill Mann arrived late. 3. APPROVAL OF AGENDA HANSEN MOVED to approve agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 4. APPROVAL OF PREVIOUS MINUTES—Regular Meeting May 29,2014 HANSEN MOVED to approve the minutes of May 29,2014. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 5. ACKNOWLEDGE RECEIPT OF THE FINANCIAL REPORT Chair Arndt pointed out specific line items in the Financial Report to the board for clarification. SYMMONS MOVED to Acknowledge Receipt of the Financial Report. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 6. VISITOR COMMENTS Jeremy Williamson of AIMS Maintenance spoke that they did not clear right a ways after July of last year until this winter. 7. CHAIR'S REPORT None 8. OLD BUSINESS A. Update On continued clearing of Road Right A Way Chair Arndt reported to the Board the various streets in which they did some ditching, cleared the right of ways, and replaced culverts. They are 80% complete with the project throughout the Service Area No. I. He presented letters from KEA and Bob Himes of Fire Protection I 1 Service Area No.1 March 10,2015 Service Area No. 1 Board RM, March 10, 2015. Page 79 of 92 AGENDA ITEM #17.A.1. • M Commending Service Aiea No.1 and Chair Arndt for the clearing of the right a ways. Safety was one of many reasons this was a necessary task. I 9.NEW BUSINESS i A.-Purchase of:Calcium Chloride ' Chair Amdt;explained to the board that this used for dust control on the roads in the summer. Round Butte Products was the only bidder who responded with a quote of$12,350. SYMMONS MOVED to approve the purchase of 20 Tons of Calcium Chloride for $12,350. Board Discussion ensued. ROLL CALL VOTE ON MOTION CARRIED 7 to O. B. Survey Purchase Order Addition of$12,000 to finish the fiscal year Chair Arndt explained the billing on St. Denny Surveying regarding the original Purchase Order #2015-2 in the amount of$23,000.The survey work exceeded the purchase order plus there was additional survey work to be completed by June 30'2015. He requested an additional $12,000 to complete project. Board discussion ensued. SYMMONS MOVED to approve a purchase order to St. Denny Surveying for$12,000 to finish the fiscal year. Board discussion ensued. ROLL CALL VOTE ON MOTION CARRIED 7 TO O. • C. Review Draft FY2016 Budget for Public Hearing on March 24,2015 Chair Arndt discussed FY2016 Budget Worksheet Report items with the board. SYMMONS MOTIONED to move the budget forward to the Public Hearing on March 24,2015. ROLL CALL VOTE ON MOTION CARRIED 7 TO O. D. Spruce Haven Request for Road Service Dr. Bob Johnson requested that Spruce Haven Lane be maintained by Service Area No.I. Chair Arndt informed Dr. Bob the road had to be upgraded to Borough standards. Dr. Bob asked for the request to be brought before the Service Area I Board. Chair Arndt requested Community • Development investigate and provide information to be given to Dr. Bob and other.property owners of Spruce Haven Lane. Craig Johnson of the Homeowners Association was contacted and made aware of the requirements in order for the Service Area I to maintain the road. Craig Johnson asked to have the request withdrawn. E. Election of Officers Chair Arndt opened nominations for Chair of Service Area No. I. SYMMONS MOTIONED to nominated Scott Arndt for Service Area No. I Chair. There were no other nominations and Chair Arndt closed the nominations. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 2 Service Area No.1 March 10.2015 Service Area No. 1 Board RM, March 10, 2015. Page 80 of 92 AGENDA ITEM #17.A.1. Chair Amdt opened nominations for Vice Chair. SIROFCHUK MOTIONED to nominate Dennis Symmons for Vice Chair. There were no other nominations and Chair Arndt closed nominations. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 10. VISITOR COMMENTS None 11.BOARD COMMENTS C. Howell—None M. Sirofchuk— It was nice to be on the board and thanked Chair Arndt for the explanation on the budget. B. Mann — He reiterated what Sirofchuk said and would review the budget to get caught up on things. D. Symmons — Thanked Sirofchuk and Mann for stepping up to make Service Area No. I a complete board. N. Hayden—She tried to communicate with the board in the past couple of months by e-mail and received only one reply from Sirofchuk. She would like a better exchange of information which would be appropriate and appreciated. P. Hansen — Welcomed Sirofchuk and Mann to the board. He did receive a phone call from a resident on Woodland Drive concerned about whether their tree would be cut down. S. Arndt - Received a call from a resident on Kraft Way, a new subdivision, needed a driveway permit which means a culvert would need to be put in. Street was so narrow a grader could not get in there. He would bring to attention of Community Development Department. He also planned work on Mallard Way putting in culverts and Woodland Drive for cutting trees. 12.MEETING SCHEDULE Next Meeting scheduled was for a Public Hearing on FY2016 Budget on March 24, 2015 at 7:00 PM in the Kodiak Island Borough Conference Room. Both Curtis Howell and Bill Mann were excused for that meeting due to other obligations. 13.ADJOURNMENT HANSEN MOVED to adjourn the meeting. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 3 Service Area Na.1 March 10,2015 Service Area No. 1 Board RM, March 10, 2015. • Page 81 of 92 AGENDA ITEM #17.A.1. Meeting was adjourned at 8:23 p.m. (! T _ Date:% iat' Engineering/Facilities Approved : c rr Date: 3-2.y-;'.S Scott Arndt,Chair Service Area No. I • 4 Service Area No.1 March 10,2015 Service Area No. 1 Board RM, March 10, 2015. Page 82 of 92 AGENDA ITEM #17.B.1. Kodiak Island Borough . ** *.9' it r Engineering& Facilities Department an ` P'ilf/ Projects Office `tp.�'�� 710 Mill Bay Road r 't r«,. ;: t Kodiak,Alaska 99615 Phone(907)486-9210 Fax(907)486-9347 To: Bud Cassidy,Borough Manager Cc: Bob Tucker,E/F Director From: Matt Gandel,Project Manager/Inspector RE: Change Orders for Period Ending November 30,2014 Below is a summary of approved change orders for capital projects for November 2014: Lateral Landfill Expansion Phase 3 ASRC SKW Eskimos—Contract 2014-24 Change Order#1—$34,188.00 1. Change duct material from galvanized to stainless steel-$2,324.00 2. 12"Culvert Extension to daylight over slope-$2,968.00 3. Replace specified pump with a pump that can be controlled by VFD. Total cost split 50/50 with contractor and owner-53,582.00 4. Add four new type G light fixtures at exits-$6,574.00 5. Additional detailing to handrails needed due to engineering revisions made per DNC 006 & RFI 65-$4,230.00 6. Modification to add additional cobbles to the spillway-$6,464.00 7. Add base flashing-$7,069.00 8. Additional concrete per DCN 006-$977.00 Change orders—November 2014 Manager Reports on Projects Including Change Orders, Other P... Page 83 of 92 AGENDA ITEM #17.B.1. .40 i? °- - Kodiak Island Borough = 0.4,7")¢ s, Engineering& Facilities Department Projects Office C?k-' 710 Mill Bay Road Kodiak,Alaska 99615 Phone(907)486-9210 Fax(907)486-9347 TO: Mayor and Assembly FROM: Matt Gandel,Project Manager/Inspector CC: Bud Cassidy,Borough Manager Bob Tucker,E/F Director RE: Projects Status Report for Period Ending November 30, 2014 LANDFILL LATERAL EXPANSION Brechan Enterprises is the contractor for Phase II of the Landfill Lateral Expansion project,constructing a new fully-lined landfill cell with leachate collection system. Substantial Completion for Phase II was achieved in late September 2014.The only remaining activities for Phase II are some minor items that will be completed in spring 2015. ASRC 5KW Eskimos, Inc. is the contractor for Phase III, construction of a new leachate treatment plant. The building foundation and concrete block walls have been completed,and ASRC is continuing with the slab on grade around the building, forming and pouring the remaining water holding structures, and pouring concrete walkways around the water holding structures. Erection of the prefabricated metal building is pending final grading and concrete flatwork. The Phase III contract calls for substantial completion by May 31,2015.ASRC has requested a 12-week extension to that completion date.KIB staff has not yet responded to this request which is still being reviewed for potential impacts to the project cost and landfill operations. i 1 a"-. - I. r l J;4S.-l : ,f{PVIh 9 ' � ` y1A as 1 �' ' •' rg q� kilns am, Phase 111 Work ANTON LARSEN BAY DOCK KIB has received Alaska Legislature and Denali Commission grants to provide upgrades and expansion of the existing floating dock facilities at Anton Larsen Bay. Jensen Yorba Lott and PND Engineers have completed 95% design, and it was reviewed and approved by the Architectural/Engineering Review Board (ARB) on October 28, 2014. The original design was for one sixty-foot-long dock section and an alternate bid for a second sixty-foot-long section. However, because cost estimates indicate that it will be within the budget and because it makes more sense from an engineering standpoint, the current Manager Reports on Projects Including Change Orders, Other P... Page 84 of 92 AGENDA ITEM #17.8.1. design is for two forty-foot-long dock sections,with an alternate bid for a third forty-foot-long section. The procurement of the dock will also be bid separately from the installation, to avoid paying markup cost on the manufacturing of the dock.An invitation to bid for procurement of the dock was issued on November 17, 2014, and bids are due December 3, 2014. The fabrication contract requires delivery of the dock to Kodiak by April 6, 2015. An invitation to bid for installation is scheduled to be issued in February 2015,and construction planned for spring 2015. FOUR SCHOOL GENERATORS KIB received an Alaska Legislature grant in 2011 for installation of generators at several Borough schools, including Karluk, Old Harbor, Port Lions, and North Star Elementary. Wolverine Supply of Wasilla is the contractor for this project, and started construction on October 22, 2014. The new generator pad and underground electrical have been completed at North Star at Port Lions. The site work and underground electrical for Old Harbor and Karluk, and arrival of all four generators are scheduled for December 2014. Contract documents call for Port Lions and North Star Elementary to be complete by January 2015,and Karluk and Old Harbor by July 2015. WOMENS BAY EMERGENCY SHELTER KIB has received grants from the Alaska Legislature and U.S. Department of Housing and Urban Development (HUD)for design and construction of an emergency shelter attached to the Womens Bay Fire Hall. Jensen Yorba Lott (JYL) completed design of a 3,500 square foot addition including a 1,000 square foot day room for community events and activities,double-wide apparatus bay to serve two fire engines, toilet room, and storage rooms.The project was put out for bid on October 8, 2014, and bids were opened on November 25, 2014. Four bids were received, and staff will be asking for Assembly • approval of a construction contract at the regular meeting on December 18, 2014. Construction is scheduled for spring 2015. FIRE PROTECTION AREA NO.1 EMERGENCY GENERATOR KIB received a Designated Legislative Grant in 2012 to provide an emergency power generator and switch gear at the Bayside Fire Station. In addition, the Fire Protection Area No. 1 Board agreed to provide funds to help complete the project. The project was bid in July 2014 but only one bid was received and substantially exceeded the project budget. The Fire Protection Area No. 1 Board has requested Projects Office staff put together a bid package for a reduced scope, and this is currently underway. BALER BUILDING REPAIRS The Baler Building at the landfill is in need of several minor repairs (new overhead doors, new access platforms and railings),and some larger repairs(new roof,repair of concrete floor).Jensen Yorba Lott is working on schematic design of all the required items and will provide an itemized cost estimate so KIB staff can coordinate the repairs with available budget. At this time the highest priority items are replacing the roof and repairing the concrete floor. LONG TERM CARE FACILITY The Long Term Care Facility(now Providence Chiniak Bay Elder House)was completed in January 2014, approximately $3.3 million under budget. Providence has been operating the facility since February 2014, and has requested some modifications to the building mechanical systems and added tree clearing and landscaping. These changes totaled approximately $390,000, and will be completed by Davis Constructors and Engineers through their contract for construction of the building. Thanks to savings accrued during the subcontractor buyout phase of construction,there is still approximately$1.5 million remaining on the Davis contract,so this work will be completed as a $0 change order under the Project Status Report—November 2014 Page 2 Manager Reports on Projects Including Change Orders, Other P... Page 85 of 92 AGENDA ITEM #17.B.1. total approved contract amount. Installation of a new guardrail along the access road is complete, and tree clearing is currently underway. The mechanical upgrades are scheduled for December 2014, and final landscaping will be completed in spring 2015. 71.4Ef, -71...- r 4 1 '.44‘.:.; .Irti S LI Vili'"4 t ,1 � .l i- r 11 ti .• �. : ".•y..- • r L \ l+r f A)1}fl 7 1�. 4 J 7±i ' 1. i '}a. 1:& ,L-11.4 jl — _:-� \ t J "`Q g-- .jam New Guardrail and Tree Clearing Note: A status report on the Kodiak High School Addition and Renovation project is provided separately from Wilson Engineering,Inc. • Project Status Report—November 2014 Page 3 Manager Reports on Projects Including Change Orders, Other P... Page 86 of 92 • AGENDA ITEM #17.B.1. WILSON ENGINEERING MONTHLY PROGRESS REPORT Kodiak High School Renovation Period Ending; November 30,2014 Summary: Phase 4 Tower Substantial Completion was reached this period on November 18th as scheduled.Project design consultants from JLY,PDC and DLR Group arrived in Kodiak on November 17th to commence the Substantial Completion inspection period. Architectural,Mechanical and Electrical Punch lists were developed for Phase 4 Tower,Music room and Area D Mat Room.Also completed in Phase 4 are PE storage and portions of the Sports Fitness Lounge.The Contractor commenced a 20 day punch list correction period scheduled for completion December 10,2014.The current schedule will allow Owner move-in activities to commence next period with student occupancy January 2,2014.Siding continues on the Tower's exterior with completion expected mid-December. Installation of Area B exterior thermal panels started this period and will continue into next period.Area B interior progresses with structural steel seismic upgrades,underground utilities and replacement of ground level concrete removed for the utilities. ••• Work This Period: • Completion of interior finishes •,"11,4` .9 • Exterior siding • Balancing the HVAC systems in Area A Tower — ' - :I,^'a 1 • Vinyl flooring level 1&2 ' a, --�_�. ;' • Area B underground utilities and concrete li , - _ Work Scheduled Next Period: I i • Punch list correction period Corridor A200 • Install fired rated FF&E glazing _ _�-,.- _ • Installation of FF&E ��->_arairs-' • Area B concrete floor replacement , •- -� -�:9 • Owner move into Phase 4 areas ' ` - - i , j Lip i 1 o Schedule Status:Phase 4 schedule modified(proposed r-- r completion Nov 18).Phase 6 completion revised to I -r - iiiiLtp. , r October 1,2015 i _. Scheduled Milestones In Progress RFI's b`I Phase Start Milestone % Complete Last Period 23 t 3 4-5-13 01-16-14 100% This Period 13 4th floor student commons h r� 4 4-5-13 11-18-14 9S.7% Open RFI's 01 5 6-1-14 08-21-14 98% 6 6-1-14 10-01-15 10.3% Total To-Date 471 I - - I 2. aSulli� s+ � d10Q° z - io1.� a. A ue f Zf�L• �. - oa,Jl Bruce Walter,Project Manager . e14.531 3" floor Media Arts Manager Reports on Projects Including Change Orders, Other P... Page 87 of 92 AGENDA ITEM #17.B.1. Kodiak Island Borough ' if ` Engineering& Facilities Department t ✓ , 7 Projects Office r e left 2";"" 710 Mill Bay Road n r _:,,_ ? c Kodiak,Alaska 99615 ": Phone(907)486-9210 Fax(907)486-9347 To: Bud Cassidy,Borough Manager Cc: Bob Tucker,E/F Director From Matt Gandel,Project Manager/Inspector RE: Change Orders for Period Ending January 31,2015 There were no change orders approved for capital projects for January 2015. Change Orders—January 2015 Manager Reports on Projects Including Change Orders, Other P... Page 88 of 92 AGENDA ITEM #17.B.1. Kodiak Island Borough ,,�_ Engineering& Facilities Department �d ° • Projects Office v 710 Mill Bay Road Kodiak,Alaska 99615 Phone(907)486-9210 Fax(907)486-9347 TO: Mayor and Assembly FROM: Matt Gandel,Project Manager/Inspector CC: Bud Cassidy,Borough Manager Bob Tucker,Eli Director RE: Projects Status Report for Period Ending January 31,2015 LANDFILL LATERAL EXPANSION ASRC SKW Eskimos,Inc.is the contractor for Phase III of the Landfill Lateral Expansion, construction of a new leachate treatment plan[. ASRC started in January 2015 erecting the steel framework and exterior metal panels for the new treatment plant building.All the interior concrete water holding structures and slabs are already in place. Once the building is enclosed ASRC will start painting/coating and the extensive mechanical and electrical work required for operation of the plant.The Phase III contract calls for substantial completion by May 31, 2015. ASRC has requested a 12-week extension to that completion date; KIB staff is currently evaluating this request for potential impacts to the project cost and landfill operations. F' =te"._- 1� L 101411! �- 1511 -" �. (�I t i =I TE« 1 { _ I = -, .-r-.4,. 8e - .c- , I "mot" �-- _ • .' Y Treatment Plant Building Panels In Progress ANTON LARSEN BAY DOCK KIB has received Alaska Legislature and Denali Commission grants to provide upgrades and expansion of the existing floating dock facilities at Anton Larsen Bay. Jensen Yorba Lott and PND Engineers have completed design, and an invitation to bid for procurement of the dock was issued on November 17, 2014.Three bids were received, and on December 18, 2014,the Assembly voted to approve a contract for Rainier Welding of Redmond, WA. The fabrication contract is for three 40' long dock sections, meaning the new dock will be twice as long as the existing 60' long dock.The dock is scheduled to arrive in Kodiak by April 6, 2015.An invitation to bid for installation of the new dock was issued on January 9, 2015, and bids are due on February 17, 2015. Several bidders have expressed concern with a tight timeline to get installation completed by mid-May 2015. In response to those concerns and in an effort to encourage reasonable bids,the installation window has been rescheduled for early fall 2015,with all work due to be completed by November 15,2015. Manager Reports on Projects Including Change Orders, Other P... Page 89 of 92 AGENDA ITEM #17.B.1. FOUR SCHOOL GENERATORS KIB received an Alaska Legislature grant in 2011 for installation of generators at several Borough schools, including Karluk, Old Harbor, Port Lions, and North Star Elementary. Wolverine Supply of Wasilla is the contractor for this project,and started construction in October 2014. New generator pads and underground electrical have been completed at North Star, Port Lions, and Old Harbor. All four generators and related equipment were delivered in January 2015, and installation of the generators at North Star and Port Lions is complete. Old Harbor is scheduled for installation in February 2015, with Karluk to follow. KIB and KIBSD staff are currently discussing the best use of the remaining approximately $200,000 in grant funds. There may be opportunities to install a generator at another school,or provide additional equipment to assist with operations of the generators already installed. ! t e � .mow. ryA 2 1 5!" '4hr1 A YE tir 1` wisyn • j .li y - North Star Port Lions WOMENS BAY EMERGENCY SHELTER KIB has received grants from the Alaska Legislature and U.S. Department of Housing and Urban Development (HUD)for design and construction of an emergency shelter attached to the Womens Bay Fire Hall. Jensen Yorba Lott (JYL) completed design of a 3,500 square foot addition including a 1,000 square foot day room for community events and activities,double-wide apparatus bay to serve two fire engines, toilet room, and storage rooms. The project was put out for bid on October 8, 2014, and on December 18, 2014, the Assembly voted to approve a contract for Wolverine Supply of Wasilla. Submittals are currently underway with construction scheduled to start in March 2015. • FIRE PROTECTION AREA NO.1 EMERGENCY GENERATOR KIB received a Designated Legislative Grant in 2012 to provide an emergency power generator and switch gear at the Bayside Fire Station. In addition, the Fire Protection Area No. 1 Board agreed to provide funds to help complete the project. The project was bid in July 2014 but only one bid was received and substantially exceeded the budget.The Fire Protection Area No. 1 Board has requested KIB staff put together a bid package for procurement of the generator only. This is scheduled to be put out for bid in February 2015. BALER BUILDING REPAIRS The Baler Building at the landfill is in need of several minor repairs (new overhead doors, new access platforms and railings), and some larger repairs (new roof, repair of concrete floor). Jensen Yorba Lott has completed schematic design of all the required items and provided an itemized cost estimate so KIB staff can coordinate the repairs with available budget.At this time the highest priority item is repairing the concrete floor,and staff is currently working on an RFP to put out for bid. Project Status Report—January 2015 Page 2 Manager Reports on Projects Including Change Orders, Other P... Page 90 of 92 AGENDA ITEM #17.8.1. LONG TERM CARE FACILITY The Long Term Care Facility(now Providence Chiniak Bay Elder House)was completed in January 2014, approximately $3.3 million under budget. Providence has been operating the facility since February 2014, and has requested some modifications to the building mechanical systems and added tree clearing and landscaping. Installation of a new guardrail along the access road is complete, and tree clearing is almost complete. The mechanical upgrades, including adding mechanical cooling to the building ventilation system, adding a fan at the mechanical mezzanine, and adding ventilation to the Nurse's Office, are underway and scheduled to be complete in February 2015. Final clearing of tree stumps and landscaping will be completed in spring 2015. Note: A status report on the Kodiak High School Addition and Renovation project is provided separately from Wilson Engineering,Inc. • Project Status Report—January 2015 Page 3 Manager Reports on Projects Including Change Orders, Other P... Page 91 of 92 AGENDA ITEM #17.B.1. WILSON ENGINEERING MONTHLY PROGRESS REPORT , r 1 ig " . '•Kodiak High School Renovation. r .+smu°'1. „ „,w, ,.„_,-IPenod Ending; January 31,2015:4 A _„�C��� Summary: . Construction efforts this period focus on the renovation of Area B.This section of the KHS complex houses the Administration Department,Counseling,Special Needs,Foods Lab and the Cafeteria.CEI Construction started demolition of the existing southwest stair tower making way for the addition that connects Area B to the newly completed four story Towner complex. Exterior thermal panels will be completed this period along with foundations for exterior stair towers.On the interior,first floor framing has been completed 50%.Additionally,mechanical and electrical rough-in is progressing behind the framing.The existing roof structure that was previously covering the senior commons has been removed making way for new structural steel second floor and roof systems.The Abatement Contractor is on site actively removing known ACM material.In addition to Area B,Watterson has started work in the Area E Welding Shop. This classroom is located in the old decommissioned boiler room.Work in this room includes concrete demo and underground utilities. Work This Period:• Area B exterior thermal envelope < x,T ;, „ % 3 111591('-•-c'''. 'i 1,- _ • Area B demolition ' 14 J.., 4• Area B level l framing 14, ,pa ; a -•, .,imp, i, • Area B level 1 utility rough-in . ( <' te. } • Welding Shop demo and utilities '^ a 4, ,i Work Scheduled Next Period: ”' f•. +� '' • Area B demolition continues . ''"4,' '� 4' t - • Area B interior framing level 2 Area B Demo southwest stair tower 5 T ii`4- a • Area B utility rough-in level 2 t (`” • Area B level 2 shear walls level 2 s\ --k't ,,.,,. • Area B re-roof ��. ` n '(r¢ r . , VI. d 1 e �- j I Schedule Status:Phase 6 completion revised to p r�te¢))59 a. October 1,2015 ' 1Gll1�9 � rain•„„ t 111!_ 'G�*;�: «; t ,-,Schieduled;Milestones In Progress m'{',..:RFI's �1ir fi'` >"`` c— ;.S+;d'�'-'?' <,,; v=rx. _ Phase Start Milestone % Complete Last Period 16 .+--. _='-- a, - '' '• 3 4-5-13 01-16-14 100% This Period 15 � , Area B demo commons roof structure 4 4-5-13 11 18-14 100% Open RFI's 03 i� n rs I " 5 6-1-14 08 21 14 98% i ? ' D , ' 111111Iy' 6 6-1-14 10-01-15 30.3% Total To Date 513 i ' j t 1 G(G(G(IfCCC"'"' $g,,f .r # . ) ! . _. w`t�`: > ,1 ,ta 13. f. , , 41 f�l; — h Bruce Walter,Project Manager `? $ ` tst cVl1 i1 fi p. .-� Area B framing level 1 Manager Reports on Projects Including Change Orders, Other P... Page 92 of 92 Kodiak Island Borough Assembly Regular Meeting Guidelines April 16, 2015, 7:30 p.m., Borough Assembly Chambers PLEASE ANNOUNCE: Please remember to turn on ringers on your cell phones or put them on vibrate. 1. INVOCATION Major Michael Bates of the Salvation Army. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL KIBC 2.25.070.... the Chair shall cause the record to reflect the absence of the member, the REASON for the absence, and whether the absence is excused by the Assembly. Recommended motion: Move to excuse Assembly member Griffin who is absent due to personal leave. VOICE VOTE ON MOTION. 4. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed with an asterisk (*) are considered to be routine and non-controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda. All items in yellow are consent agenda items.. Summary of Consent Agenda Items: • *Regular Meeting Minutes of March 19, 2015. VOICE VOTE ON MOTION. 5. APPROVAL OF MINUTES A. *Regular Meeting Minutes of March 19, 2015. 6. AWARDS AND PRESENTATIONS A. Employee of the Quarter Award — Manager Cassidy • Ed Arellano, Maintenance Mechanic in the Engineering & Facilities Department B. Longevity Awards— Manager Cassidy • Eddie Arellano, Maintenance Mechanic — Five Years • Martha Barnett, Interpretive Specialist/Receptionist— Five Years • Dave Conrad, Constructor Inspector/Engineer— Five Years • Jessica Kilborn, Deputy Clerk —Ten Years • Sheila Smith, Secretary III —Ten Years Kodiak Island Borough Assembly Guidelines April 16, 2015 Page 1 C. Kodiak High School Project Update and Presentation on Change Order Process — Project Manager Matt Gandel 7. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) A. Agenda Items not scheduled for public hearing and general comments. Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. sign in 2. state their name for the record 3. turn on the microphone before speaking 8. COMMITTEE REPORTS 9. PUBLIC HEARING — None. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS — None. 13. NEW BUSINESS A. Contracts 1. Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. Recommended motion: Move to approve Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. Staff Report — Manager Cassidy Assembly discussion. ROLL CALL VOTE ON MOTION. Continued on next page... Kodiak Island Borough Assembly Guidelines April 16, 2015 Page 2 2. Approval of Amendment B to Contract No. FY2013-14 To Extend the Borough Manager's Contract and Provide Direction to Staff To Begin Advertising and Proceed Forward in Searching for a New Borough Manager. Recommended motion: Move to approve Amendment B to Contract No. FY2013-14 extending the Borough Manager's Employment Contract to May 30, 2016, and also to provide direction to staff to proceed forward in searching for a borough manager. If the Assembly desires to separate the motion into two parts: Move that the motion be divided, and consider separately the motions of: • Approving Amendment B to Contract No. FY2013 extending the Borough Manager's Employment Contract to May 30, 2016; and • Providing direction to staff to proceed forward in searching for a borough manager. VOICE VOTE ON MOTION TO DIVIDE THE QUESTION Mayor Friend announces that the approval of Amendment B to Contract No. FY2013 extending the Borough Manager's Employment Contract to May 30, 2016 is now before the Assembly. Staff Report — Manager Cassidy Assembly discussion. ROLL CALL VOTE ON MOTION. Mayor Friend announces that the motion to provide direction to staff to proceed forward in searching for a borough manager is now before the Assembly. Staff Report— Manager Cassidy Assembly discussion. ROLL CALL VOTE ON MOTION. B. Resolutions— None. Kodiak Island Borough Assembly Guidelines April 16, 2015 Page 3 C. Ordinance for Introduction 1. Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.35 Real Property Tax. Recommended motion: Move to adopt Ordinance No. FY2015-10 in first reading to advance to public hearing at the next regular meeting of the Assembly. Staff Report— Manager Cassidy Assembly discussion and amendments may be made at the time. ROLL CALL VOTE ON MOTION. 2. Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax. Recommended motion: Move to adopt Ordinance No. FY2015-11 in first reading to advance to public hearing at the next regular meeting of the Assembly. Staff Report— Manager Cassidy Assembly discussion and amendments may be made at the time. ROLL CALL VOTE ON MOTION. D. Other Items— None. 14. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) Read phone number: Local is 486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. sign in 2. state their name for the record 3. turn on the microphone before speaking 15. ASSEMBLY MEMBERS' COMMENTS Announcements — Mayor Friend The Assembly will hold a joint work session with the School Board on Thursday, April 23 at 6:30 p.m. in the School District Conference Room. The next Assembly work session will be held on Thursday, April 30 at 7:30 p.m. in the Borough Conference Room. The next regular meeting is scheduled on Thursday, May 7 at 7:30 p.m. in the Borough Assembly Chambers. 16. ADJOURNMENT Recommended motion: Move to adjourn the meeting. ROLL CALL VOTE ON MOTION. Kodiak Island Borough Assembly Guidelines April 16, 2015 Page 4 KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET O Regular /Special Date: 040 1415-11713 Convened: 1; �J�{ 1 ry` Recessed: Reconvened: Adjourned: BY: BY: -F47 BY: n D BY: BY: P SECOND: SECOND: /� n SECONDD: 1�C- L SECOND: 9.g. SECOND: C ( C, v Ala jou MP 721A 1 . yQo117-1'P TAY OUrf Cili6-4Y\), CPW4th 13° YES NO YES" NO YES ! NO YES ','NO YES NO Ms. Austerman V Ms"Austerman Ms. Austerman Ms. Austermatqi ✓ Ms. Austerman ✓ Mr. Griffin •. / ii r a fi a . .. •' c .' '4. ?y... • .. Mr. LeDoux // Mr. LeDoux Mr. LeDoux Mr. LeDoux ✓ Mr. LeDoux 4, V /- Ms. Lynch V Ms. Lynch Ms. Lynch Ms. Lynch V7 Ms. Lynch Mr. Peterson ✓ Mr. Peterson Mr. Peterson Mr. Peterson V Mr. Peterson Mr. Rohrer f Mr. Rohrer Mr. Rohrer Mr. Rohrer ✓ Mr. Rohrer Ms. Skinner ✓ Ms. Skinner Ms. Skinner Ms. Skinner Ms. Skinner V ;CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE?j TOTAL: TOTAL: TOTAL: TOTAL: `-€ 0 TOTAL: � I The mayor may np t vote except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor Friend V Mayor Friend Mayor Friend Mayor Friend Mayor Friend • Motions required for 2/3 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules, limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. a - KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Regular �/ Special Date: l L t I Id✓iJ Convened: II IIRec//essed: Reconvened: Adjourned: BY: BY: I� BY: BY: BY: �f _ OND: SE iJD: grir SECOND: SECOND: SECOND: Ffl CO-14TIM4 1\)0 9.01-5- 14 s Oral �'S -ID O N9Ot l.'n.A M IcIS , . YES ` NO YES NO 1 YES. NO YES 'NO YES NO • Ms. Austerman Ms. Austerman V Ms. Austerman ' V, / Ms. Austerman ✓ Ms. Austerman ✓ f i CS . Mr. Griffin Mr. Mr. LeDoux Mr. LeDoux ✓ Mr. LeDoux ✓ Mr. LeDoux ✓ Mr. LeDoux Ms. Lynch °W Ms. Lynch /, Ms. Lynch ✓ Ms. Lynch ✓ Ms. Lynch ✓ Mr. Peterson Mr. Peterson v Mr. Peterson.t ✓ Mr. Peterson ✓ Mr. Peterson Vz Mr. Rohrer Mr. Rohrer V Mr. Rohrer ✓ Mr. Rohrer Itil ✓ Mr. Rohrer V Ms. Skinner Ms. Skinner ✓ Ms. Skinner t / Ms. Skinner ✓ Ms. Skinner✓ ;CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE?j TOTAL: TOTAL: 4 a only six TOTAL: • C TOTAL: (1, O TOTAL: ' n 0 The mayor may not vote except in the case whe six members of the assembly.a e present and there is a three/three tie vote of the assembly. V Mayor Friend Mayor Friend Mayor Friend Mayor Friend Mayor Friend • Motions required for 2/3 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules, limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. 3 / KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET 0 Regular ttt/// Special Date: O ` � • /�/� • c4 Convened: Recessed: Reconvened: Adjourned: 1 'a`2 1' &V'i t 0 BY: V BY: BY: BY: BY: SECOND: c / SECOND: SECOND: SECOND: SECOND: YES NO YES NO . ,YES NO YES ; NO . i YES NO Ms. Austerrrra ill ✓ Ms. Austerman Ms. Austerman Ms. Austerman Ms. Austerman Mr-N.Or i Griff?r i . l• 'ffi. , e •II Mr 'ffin�� Mr. LeDoux ✓ Mr. LeDoux Mr. LeDoux a Mr. LeDoux - Mr. LeDoux Ms. Lynch / Ms. Lynch Ms. Lynch • Ms. Lynch Ms. Lynch Mr. Peterson V Mr. Peterson Mr. Peterson Mr. Peterson Mr. Peterson Mr. Rohrer Mr. Rohrer Mr. Rohrer Mr. Rohrer Mr. Rohrer Ms. Skinner J Ms. Skinner Ms. Skinner Ms. Skinner Ms. Skinner (CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE? CHANGE OF VOTE?j. TOTAL: (Q 0 TOTAL: TOTAL: TOTAL: TOTAL: The mayor may not vote except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor Friend Mayor Friend Mayor Friend Mayor Friend Mayor Friend • Motions required for 2/3 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules, limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. KODIAK ISLAND BOROUGH Regular Meeting Regular Meeting of: 1,4124.;) / CI 7-0 IS Please PRINT your name Please PRINT your name TAI4L, J 11-PL /dike J since Minutes of this and other assembly meetings as well as copies of agenda items are available at the Borough Clerk’s Office or on the Kodiak Island Borough’s website www.kodiakak.us. The next regular meeting of the Kodiak Island Borough Assembly is scheduled on Thursday, May 7, 2015, at 7:30 p.m. in the Borough Assembly Chambers. At its Regular Meeting of April 16, 2015, Kodiak Island Borough Assembly Took the Following Actions: PRESENTED the Employee of the Quarter Award for the First Quarter of 2015 to Eddie Arellano, Maintenance Mechanic in the Engineering and Facilities Department. PRESENTED Five-Year Longevity Awards to Eddie Arellano, Maintenance Mechanic, Dave Conrad, Construction Inspector/Engineer, and Martha Barnett, Interpretive Specialist/Receptionist in the Engineering and Facilities Department and Presented Ten-Year Longevity Awards to Jessica Kilborn, Deputy Clerk in the Borough Clerk’s Office and Sheila Smith, Secretary III in the Community Development Department. RECEIVED an Update and Presentation on the Kodiak High School Addition and Renovation Project and Change Order Process From Project Manager Matt Gandel. APPROVED Contract No. FY2006-37A Amending Contract No. FY2006-37 Kodiak Island Borough Clerk Employment Agreement. POSTPONED Amendment B to Contract No. FY2013-14 Extending the Borough Manager’s Contract to the Regular Assembly Meeting of May 21, 2015. DIRECTED Staff to Proceed W ith the New Borough Manager Hiring Process. ADOPTED Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.35 Real Property Tax in First Reading to Advance to Public Hearing at the Next Regular Meeting of the Assembly. ADOPTED Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax in First Reading to Advance to Public Hearing at the Next Regular Meeting of the Assembly. Vol. FY2015, No. 20 April 17, 2015 Kodiak Island Borough Assembly Newsletter