2015-02-26 Work Session Kodiak Island Borough
Assembly Work Session
Thursday, February 26, 2015, 7:30 p.m., Borough Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting
agenda packet and seek or receive information from staff.Although additional items not listed on the work session agenda
are discussed when introduced by the Mayor,Assembly,or staff,no formal action is taken at work sessions and items that
require formal Assembly action are placed on regular Assembly meeting agenda.Citizen's comments at work sessions
are NOT considered part of the official record.Citizen's comments intended for the"official record-should be made at a
regular Assembly meeting.
Page
1. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
2. AGENDA ITEMS
3 - 6 a. High School Siding Credit Negotiations
centria blistered panel memo.pdf
Siding Pictures SAM 1751 & 1746.pdf
7 - 14 b. FY2016 Revenue Forecast
FY2016 Revenue Proiections.pdf
15 - 19 c. Natives of Kodiak Letter of Support
• CA NOK Letter of Support Buskin Beach Propertv.pdf •
NOK support letter city.pdf
NOK Legislation Intro.pdf
NOK Request of support.pdf
3. PACKET REVIEW
NEW BUSINESS
RESOLUTIONS
Resolution No. FY2015-21 Adopting the Kodiak Island Borough Strategic Plan
for the Years 2015-2020.
*Resolution No. FY2015-20 Approving the Village of Karluk and its Native
Village Council to Participate in the FY2016 Community Revenue Sharing
Program
OTHER ITEMS
Approval of Additional Expenditures Associated with Purchase Order No.
2015-00000002 for Survey Work in Service Area No. 1.
Approval of Additional Expenditures Associated with Purchase Order No.
2015-00000023 Survey Work for the Landfill Subdivision Tract.
*Confirmation of the Mayoral Appointment to the Planning and Zoning
Commission (Greg Spalinger).
*Confirmation of the Mayoral Appointment to the Architectural/Engineering
Review Board (Steven Neff).
*Confirmation of the Mayoral Appointment to the Parks and Recreation
Committee (Dale Stratton).
Page 1 of 19
4. MANAGER'S COMMENTS
5. CLERK'S COMMENTS
6. MAYOR'S COMMENTS
7. ASSEMBLY MEMBERS COMMENTS
Page 2 of 19
•
AGENDA ITEM #2.a.
Jensen I I
Yorba I I
Lott
Inc. • I MEMORANDUM
Serving Alaska Since 1935
Date: February 23,2015
To: Bruce Walter, KIB HS Project Manager
From: Tony Yorba
RE: Centria Wall Panel issue final determination draft
CC: Matt Gandel
This memo is intended to describe discussion and recommended agreement on
how to proceed with the installation of insulated metal wall panels at the
Kodiak High School.
It has been noticed that under certain light conditions and from certain angles,
shallow deformations are visible in the grey wall panels installed on the west
• wall of the recently occupied 4 story tower.The deformations are caused by:
Expanding insulation (called end humps),and blisters. End hump occurs
during wall fabrication when the self expanding insulation placed inside the
metal wall panel expands to a slightly greater depth than other areas of the
panel,usually measured in hundredths of an inch,and usually occurring at one
end of the panel. The end humps are normally not noticeable,and are not
controlled by specification or industry standard. The manufacturer does have
standards and the end humps appear largely within their standards.End humps
occur in both the yellow panels and the grey panels,but are visible only in
certain grey panels.
Blisters are caused by the panels off gassing,causing internal pressure within
the panel which swells the panel surface. The orientation of the wall,the panel
color and the combination of the end humps and blisters have made some of the
panel deformations more visible under certain conditions.
None of these conditions affect the structural integrity, weather performance or
color integrity of the panels, nor will the condition worsen with time. However,
Centria,the panel manufacturer,recognizes that KIB project management and
the design team were not satisfied with the condition without some sort of
additional measures being taken. Area B panel installation is currently being
held pending the resolution of the issue.
ARCHITECTURE•INTERIOR DESIGN•CONSTRUCTION MANAGEMENT
522 WEST 10TH STREET JUNEAU,ALASKA 99801
(907)586-1070 FAX(907)586-3959
www.jensenyorbalott.com
PAGE 1
Page 3 of 19
High School Siding Credit Negotiations
AGENDA ITEM #2.a.
We looked at removing and replacing the most apparent panels,but two issues
dissuade us from that approach. The first and most important is that the panels
as installed are proving to be very weather resistive,with no leaks reported at
all. It will be very difficult to remove and replace those panels and be assured
that the same weather integrity will be achieved. There are so many layers of
overlapping materials used to ensure there are redundant waterproofing
systems,they likely cannot be maintained if we remove and replace part of the
panels. The other matter is that since it is largely an aesthetic matter,that the
repair/replacement measures may still result in panels that are slightly out of
alignment or otherwise not a significant improvement over the panels already
successfully installed.
In recognition of the end humps and blisters in the Centria panels installed at
Area A,and out of concern that similar issues will be present in the panels to be
installed at Area B,Centria and KIB project management,with the assistance of
the design team,have tentatively arrived at the following solution:
1. Proceed with installation of panels at Area B.
2. KIB accepts a$100,000 credit from Centria for the panels for area A and B that
meet the Centria factory criteria for end hump,but which still have a hump
visible in some light.
3. Instead of removing and replacing blistered panels already installed in area
A, the cost of removing and replacing these panels will be credited to the KIB.
The cost was agreed at$20,000.
4. Extend the standard manufacturer materials and workmanship warranty
from 5 years to 7 years total.
5. Extend the manufacturer standard finish warranty from 20 years to 25 years
total.
6. Recognize that if blistered panels occur at Area B, we will negotiate an
additional credit.
In short,the panel manufacturer agrees to extend the panel warranty and
provide a credit to KIB of$120,000 for the panels installed, with the recognition
that we will look to them for additional compensation if blistered panels are
discovered in Area B.
We believe that this is a fair and equitable solution to this matter. The bulges in
the panel surfaces are only visible under certain light and view orientations and
even at that do not significantly detract from the building appearance.
We recommend approving this solution.
•
ARCHITECTURE•INTERIOR DESIGN•CONSTRUCTION MANAGEMENT
522 WEST 1091 STREET JUNEAU,ALASKA 99801
(907)5864070 FAX(907)586-3959
w ww.jensenyorbalottcom
PAGE 2
Page 4 of 19
High School Siding Credit Negotiations
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AGENDA ITEM #2.b.
FY2016
KIB Revenue Forecast
r per r
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Prepared by: Dora Cross, Revenue Accountant
Karleton Short, Finance Director
Page 7 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
Summary
We feel that F1'2016 revenues will remain consistent with 1.1'2015 revenues.
Local Revenue Sources: Property values should remain stable. The fishing industry is doing well and shows
no sign of decline. We anticipate logging activities will stay at its current level for at least 1 to 2 more years.
We expect building permits and other local sources of revenues to be flat and similar to previous years.
Interest rates continue to be quite low and we do not see any indications that they will rise in the near future.
State Revenue Sources: State revenue sharing could decline if legislation does not appropriate additional
monies. We expect revenue collections by the State for fisheries tax to be consistent with prior years.
Federal Revenue Sources: Although FY2016 I'll:f has not been funded,we expect Federal revenue sharing
to be similar to prior years.
While they are not directly related to Borough revenues,deposits in our local banks and unemployment are
two indicators of the local economy. Deposits held by Kodiak banks continue to rise while Unemployment in
the Borough has been decreasing the last 10 years. Both of these are indicators of a strong local economy.
Deposits in Local Banks
300,000,000
250,000,000
200,000,000 x'-
150,000,000
100,000,000 1111 x0,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Unemployment last 10 Years
9
5 a 8 _ l'un•
4 MI MI NI MI IN
1II � . i . � � I
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Page 8 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
LOCAL REVENUE SOURCES •
Property Taxes
In 2010 the Borough's Assessing department began a re-appraisal program with the goal of reviewing road
system properties even'three years and remote properties every five years.Currently, 100%of road system
properties and 99%of remote properties have been re-appraised.Since the beginning of the re-appraisal
program,the total taxable real and personal property values have increased.
Real and Personal Property Values
FY2016 Estimated
1,200,030,000 -- t
1,000,000,000 d I
800,030,000
1 I G I I I I .- I ••
600,000,000
1` I 14 I r. I
400,000,000 '
200,000,000 tir Ilc I j i• I P I ' "WI i� I�
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
•Real Property •Personal Property
The real estate market remains strong in the Borough. The FY2015 taxable amount was S1,172,671,825.
The Borough Assessor estimates that the assessed value of the Borough will increase 1%in F1'2016 to
S 1,188,559,500.
If We do not change the FY2015 mill rate(10.75 mills)the projected increase in assessed values for F12016
will result in an additional S175,000 in property tax revenue.
The Borough Assessor does not feel that there will be a slump in property values in the foreseeable future.
Other Local Sources
Other local sources of revenues include:
1. Non Ad valorem taxes-these taxes are boats and aircraft. We are budgeting S50,000 for F\'2016.
2. Miscellaneous—these are items such as sale of maps,surplus items and jury duty.
Severance Tax on Seafood
The economy of the Borough is driven by fishing. The Borough benefits from a diverse fishing fleet.
The major types of commercial fisheries are:
• Trawl caught fish: these are fish such as cod,pollock,sole,etc.that are harvested by draggers.
• Halibut,sable fish,cod,pollock etc. that are caught by long lining.
• Salmon that are caught by seining and gillnetting.
• Crab and cod that are caught by pot.
Other fisheries include species such as scallops,sea cucumbers and urchins,etc.
Page 9 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
LOCAL REVENUE SOURCES (coned)
Severance Tax on Seafood (coned)
The Borough receives revenues from the fishing industry two different ways:severance tax for seafood
delivered to the dock and processed in the Borough,and the shared revenue from the State of Alaska as
Fisheries Business'lax. The Borough assesses a severance tax which is the same as the area wide mill rata In
FY2015 this rate was 10.75%.
Severance Tax on Seafood
FY2015 and 2016 Estimated
2,000,000 / w
•
lsoo,000
1,000,000
500,000 F
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
•
The Borough collected 51,715,495 in severance tax on landed seafood in FY2014 and has collected 5894,423
in the first two quarters of FY2015.
At this time we recommend budgeting 51,700,000 for Borough severance taxes on seafood.
Severance Tax on Timber
The Borough's severance tax on Umber had been steadily increasing since F1-2009. There are two large
logging operations in the Borough,one on Afognak Island and one on the Kodiak Island road system.
Severance Taxes on Logging
FY 2015 and FY2016 Estimated
120,030 /
100,030
80,003 111 '
60,000
20,000 is 111 1 1 1' 1 1 1
20,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
At this time,we believe that severance taxes on logging will remain fairly constant for the next I to 2 years.
Page 10 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
LOCAL REVENUE SOURCES (cont'di
Building Permits
Building permit revenues have been fairly level since F\2011. We are budgeting permit revenues to remain
flat in F12016.
Building Permit Revenue
FY2015 and FY2016 estimated
80,000
60,000 f
40,000
20,000 I: ill U I;
RA a a RA
RA RA RA RA Interest Earnings
The Borough can receive more in interest earning by purchasing treasuries and agencies for longer terms,
however we must be careful because interest rates may go up significantly in the not too distant future. While
we have some investments with longer maturities,most are fairly short term.
The Borough invests most of its funds in agencies. These generally follow the treasury rate. The following
chart shows the interest rates for treasuries at February 23,2015.
US Treasury Rates
3.00% _
2.50% 1
2.00% ' . x
130% "1. —
1.00% is
0.50% t0 , I
0.0o% ^�
�c`r_op c`,cs ayac eah et ea eab et et et
��o b/p \ tia a 1a a you p'\ Boa
We expect that interest earnings will remain low through at least FY2015 and probably through I71'2016. We
are budgeting interest earnings very conservatively.
Page 11 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
STATE REVENUE SOURCES
Community Revenue Sharing
State Community Revenue Sharing
2016 Estimated
1,200,000
1,000,000 t
800,030 iiw'ru : , •
600000 0 f '1 ` . ` ` . i s
400,0 0 0 . . ■ II I ;� . 1 ;. -.
/ ■ ■ in ■ ■ ■ ;■ ■ ■
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
We anticipate that the Borough will receive less than we did in FY2015. We received 5724,731 in FY2015
and are budgeting 5667,277 for FY2016.
If legislation decides to not appropriate additional monies into the Community Revenue Sharing Fund,
payments will decline by 33%in FY2017,55%in FY2018 and no funding will be available in FY2019.
Fisheries Business Tax
One half of the revenue collected by the State for fisheries tax is remitted to the Borough.'Ilse Bi in ugh's
receives revenue from the State for the Fisheries Business Tax(formerly Raw Fish'fax). This revenue
correlates strongly with the Borough tax on seafood.Revenue collected and passed on by the State is
generally one year behind.
State Fisheries Business Tax
FY2016 Estimated
2,000,000
1,533,000 , '
111111r _ :I i�.
1.033000 I , 1 ,
500,000 i , 1 , ill
4v~OO^��(§) COOO F\�Cif �ryoti'' 0O'I,���O,Y3�,�O,r OP's"s"�ry0%
We are budgeting income from this source conservatively based on the same reasons for keeping our
severance tax revenue estimates conservative.
At this time we are going to budget S 1,500,000 for the Borough's share of the raw fish tax.
Page 12 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIR Revenue Forecast
FEDERAL REVENUE SOURCES
Payment in Lieu of Taxes (PILT)
PI I:P are payments to local governments that help offset losses in property taxes due to non-taxable lands
within their boundaries.The Borough may receive PUT f payments other state and local sources,however
only the Federal PILT funding is material.
Federal PILT
FY2015 and FY2016 Estimated
2,000,000
1,500,000
1,000,000 — III— iii
IE
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Now: The PILT program was not fully funded until FY2009. The In12009 payment included funds
that should have been paid in Fl 2.008 which resulted in a large amount that was paid in FY2009.
The Federal PILT(Payment in Lieu of Tax)payment has not been funded for FY2016.Since this program
has been fully funded since 2009,we are anticipating full funding for F]2016.
National Wildlife Refuge Revenue Sharing
The Borough receives revenue from the Federal Government to offset the economic effects of owning land
in the Borough.
Federal Shared Revenue
FY2015 and FY2016 Estimated
400,000
300,000 ' ,
200,000 0 , ,ii ,_`
100.0000 $ ,- , ,� , , , , , I �/
These revenues have been fairly flat since F 201 land we anticipate no significant changes for FY2016.
Page 13 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.b.
FY2016 KIB Revenue Forecast
CONCLUSION
We project the economy of the Borough will remain stable along with our revenue sources. Although
interest earnings have been in a state of decline for several years,the Borough has not relied on this revenue
source.
The General Fund has a fund balance large enough to make up for any significant decreases in one or nu ire
revenue sou rtes.
The NI m ugh can build its FY2016 budget on the assumption that revenues will remain strong.
Page 14 of 19
FY2016 Revenue Forecast
AGENDA ITEM #2.c.
Kodiak Island Borough
• �r '� Office of the Borough Mayor
710 Mill Bay Road
Kodiak,Alaska 99615
girl r _ Phone (907) 486-9310 Fax (907) 486-9391
n;w.kodiakak.us / clerks@kodiakak.us
February 25, 2015
The Honorable Dan Sullivan
B40A Dirksen Senate Office Building
Washington, DC 20510
Dear Senator Sullivan,
It is our understanding that Natives of Kodiak(NOK) is seeking introduction of legislation asking
the federal government to compensate the corporation for the diminished value of Alaska Native
Claims Settlement Act (ANCSA) lands due to permanent environmental contamination by the
United State Army. Please consider this letter as our endorsement of this request.
At issue is 743 acres of ANCSA-conveyed land referred to as the Buskin Beach property, part of
a small portion of land NOK received near the City of Kodiak. At the time of its conveyance, the
federal government did not disclose significant contamination to the Buskin Beach property by
the Army during World War II, when the site was used as an asphalt and metal disposal area,
underground storage tank site, and grease pit. Efforts by NOK and the U.S. Army Corps of
Engineers to clean the contaminated land were stopped when it was determined the property
would never be fully remediated, making it economically infeasible to develop the land.
Natives of Kodiak offers a compelling argument in favor of federal compensation for their lost
economic opportunity on the Buskin Beach property. I urge your consideration of their request
for legislation to rectify this situation.
Thank you for your consideration of this letter.
Sincerely,
KODIAK ISLAND BOROUGH
Jerrol Friend
Borough Mayor
Page 15 of 19 •
Natives of Kodiak Letter of Support
AGENDA ITEM #2.c.
From: Marlar.Debra
To: Nova Javier
Cc: fi'Kl Cassidy tessira Kilbonl
Subject: NOK support letter
Date: Tuesday,February 24,2015 8:41:58 PM
FYI,
The Council discussed NOK's request for a letter of support for funds to compensate for the contamination left by
the federal government.The council voiced support of sending a letter that mirrors Senator Stevens'letter.The
City's letter will not include any additional information.
Deb
Sent from my iPad
• Page 16 of 19
Natives of Kodiak Letter of Support •
AGENDA ITEM #2.c.
SESSION ADDRESS: WTERIM ADDRESS:
Alaska State Capitol Senator Gary Stevens 305 Center Ave,Ste. 1
Juneau,Alaska 9980/-1182 Alaska State Legislature Kodiak,Alaska 99615
(907)4654925 g (907)4864925
Fax:(907)465-3517 Fax:(907)486-5264
Toll Free: 1800821-4925 OF t Tye
I/7 sA
: — —-'
ate:
The Honorable Dan Sullivan
340A Dirksen Senate Office Buildine
Washington,DC 20510
February 4,2015
Dear Senator Sullivan,
It is my understanding Natives of Kodiak's (NOK) is seeking introduction of legislation asking
the federal government to compensate the corporation for the diminished value of Alaska Native
Claims Settlement Act (ANCSA) lands due to permanent environmental contamination by the
United States Army. Please consider this letter my endorsement of this request.
At is issue is 743 acres of ANCSA-conveyed land referred to as the Buskin Beach property,part
of a small portion of land NOK received near the City of Kodiak. At the time of its conveyance,
the federal government did not disclose significant contamination to the Buskin Beach property
by the Army during World War II,when the site was used as an asphalt and metal disposal area,
underground storage tank site, and grease pit. Efforts by NOK and the U.S. Army Corps of
Engineers to clean the contaminated land were stopped when it was determined the property would
never be fully remediated,making it economically infeasible to develop the land.
Natives of Kodiak offers a compelling argument in favor of federal compensation for their lost
economic opportunity on the Buskin Beach property. 1 urge your consideration of their request for
legislation to rectify this situation.
Thank you for your consideration of this letter.
Si
-nator Gary Stevens
Senate District R
Senator.GarySrevens@akleg.gov
Page 17 of 19
Natives of Kodiak Letter of Support
AGENDA ITEM #2.c.
From: Marlar Debra •
To: Nova Javier
Subject: FW:letter of support
Date: Monday,February 23,2015 4:15:59 PM
Here is more email information about NOL's request to the City.
Original Message
From:Dave Anderson[mailto•danderson nokrrt)pmail eo11]
Sent: Wednesday,February 18,2015 9:04 AM
To:Branson,Pat
Subject:RE:letter of support
Before the end of the month.
Original Message
From: 13ranson,Pat[mailto•nbransnnncity kodiak ak its]
Sent:Tuesday,February 17,2015 9:19 PM
To: Dave Anderson
Subject: Re:letter of support •
Thanks David I will bring p to the council and city manager. Did you have a deadline for this?Paat
Sent from my iPad
>On Feb 17,2015,at 2:39 PM,"Dave Anderson"<danderson.nok a gmail.com>wrote:
>
>Mayor Branson,
>We at NOK are looking at developing our property at Swampy Acres,we are looking at housing,a store,hotel and
possible a mini mall.This would bring jobs and economic development to the Kodiak area.When Natives of
Kodiak was given this land through the Alaska Natives Lands Claims Settlement Act,NOK did not know at the
time of all the contamination on the property,what the letter of support would help with is that since we do not have
water are sewer line to our property.We feel the that Federal Government is responsible to make NOK whole by
compensation of the property that we were promised for economic development and being self-sufficient. I hope
this helps.
>'Thanks,
>David
> Original Message
>From: Branson,Pat[mai]to'nbranson @city kodiak ak tic]
>Sent:'Tuesday,February 17,2015 1:32 PM
> Dave Anderson
>Subject:Re:letter of support
>David
>Can you please clarify your request for NOK?
>Sent from my iPad
>On Feb 17,2015,at 10:50 AM,"Dave Anderson"
<danderson.nokngmail.eom<lnailto:danderson nnk<igmail coin>>wrote:
Page 18 of 19
Natives of Kodiak Letter of Support
AGENDA ITEM #2.c.
>Mayor Branson.
>Good morning.Natives of Kodiak is looking for a letter of support from the City of Kodiak,NOK has hired Sarah
Lukin to help get legislation into the Federal arena.Sarah has tasked me to get the letters of support from the City.
We would also request that the letter be addressed to the Alaska Delegation,Senator Sullivan.Senator Murkowski
and Congressman Young.What we would need from the City in support is to focus on jobs,development the land
would create(construction.service industry,etc.)and housing needs within the area.Also the city could recognize
that there s no water there and that the water infrastructure would be necessary to develop the land.Mayor Branson
thank you in advance.
>David Anderson
>Vice President
>Natives of Kodiak
•
Page 19 of 19
Natives of Kodiak Letter of Support
KODIAK ISLAND BOROUGH
WORK SESSION
Work Session of: FPQ rcun�, 26, 20 /5
Please PRINT your name Please PRINT your name
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