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2015-05-14 Work Session Kodiak Island Borough Assembly Regular Work Session Thursday, May 14, 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 6 a. Draft Letter to the North Pacific Fisheries Management Council Requesting an Emergency Rule. NPFMC u t for r_- n E i ., f Clarification r Heather c 7 - 9 b. Resolution No. FY2016-01 Establishing the Minimum Tax Levy and the Minimum Amount of Funds to be Made Available From Local Sources for the Kodiak Island Borough School District for the Fiscal Year Beginning July 1, 2015 and Ending June 30, 2016. Resolution 1 - 1 School District Budget.pd€ C. Budget Review of the General Fund, Capital Projects Fund, Special Revenue Fund, Debt Service Fund, and Enterprise Funds. , PACKET REVIEW a. PUBLIC HEARING Resolution No. PY2016-01 Establishing the Minimum Tax Levy and the Minimum Amount of Funds to be Made Available From Local Sources for the Kodiak Island Borough School District for the Fiscal Year Beginning July 1, 2015 and Ending June 30, 2016. Ordinance No. FY2015-01 B Amending Ordinance No. FY2015- 01 Fiscal Year 2015 Budget by Amending Budgets to Account for Various Revenues That Are Over Budget, Accept Grants, and Provide for Additional Expenditures. State of Alaska Alcoholic Beverage Control Board for a Liquor License Transfer of Ownership for Island Hotels, LLC dba Chart Page 1 of 9 Room#600. State of Alaska Alcohol Beverage Control Board Liquor License Transfer of Ownership for island Hotels, LLC dba Kodiak Harbor Convention Center#3480. UNFINISHED BUSINESS Approval of Amendment B to Contract No. FY2013-14 To Extend the Borough Manager's Contract. Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.35 Real Property Tax. Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance Chapter 3.40 Personal Property Tax. NEW BUSINESS ORDINANCES FOR INTRODUCTION Ordinance No. FY2016-01 Levying Taxes on All Taxable Real and Personal Property Within the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal Year Commending on the First Day of July 2015 and Ending on the Thirtieth Day of June 2016 (Fiscal Year 2016 Budget). OTHER ITEMS Authorization for a Letter to the North Pacific Fisheries Management Council Requesting an Emergency Rule. Discussion of a Letter or Resolution of the Borough Assembly Opposing the GOA Navy Training Off the Coast of Kodiak. Confirmation of Mayoral Appointments to the Joint Building Code Review Committee (Bill Barton and Scott Arndt). *Declaring a Seat on the Architectural/Engineering Review Board Vacant (Gregg Hacker). *Declaring Seats on the Fire Protection Area No. 1 Board Vacant (Jim Pickett and Kiela Pickett). *Declaring a City Seat on the Planning and Zoning Commission Vacant (Patricia Olsen). 4. MANAGER'S COMMENTS 5. CLERK'S COMMENTS 6. MAYOR'S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Page 2 of 9 AGENDA ITEM #2.a. liar Kodiak Island Borough tr. Office of the Borough Mayor 710 Mill Bay Road Kodiak, AK 99615 Phone (907) 486-9310 Fax(907) 486-9391 — Email:jerrol friend&ibassembly-org websile: wwny.kaxdiaakak.us May 26,2015 Chairman Dan Hull North Pacific Fishery Management Council 605 West 4's,Suite 306 Anchorage,AK 99501-2252 RE:Chinook salmon PSC closure for the GOA CV non-pollock non-rockfish trawl sector Dear Mr.Hull, The GOA non-pollock non-rockfish CV sector fisheries closed on May 3 due to the newly implemented regulation,Amendment 97,which imposes a 2,700 Chinook salmon hard cap on these fisheries. According to the EA/RIR/IRFA for the Chinook Salmon Prohibited Species Catch in the GOA non-pollock trawl fisheries that supported the decision implementing this limit,"the impact of the earliest closure(mid-April)to the CV sector is estimated to be 22,000 mt of harvest,$28.5 million in first wholesale revenue"' The only community to be affected by the present closure is the community of Kodiak, since the Kodiak fleet is the only non-pollock trawl catcher vessel fleet that operates after May in the Gulf of Alaska.'The economic loss of the closure will be substantial and will directly impact the community of Kodiak. In considering the effect of the loss to Kodiak, it should be noted that the only shoreside impact in the analysis estimate is the harvester's and processor's loss.The economic base of Kodiak is largely dependent on fishery support industries,including local water,sewer,and electric utilities,fuel suppliers, shippers,vessel maintenance facilities,and harbor facilities to name a few. The losses to the community are greatly underestimated by the analysis because it fails to consider the dependence of these support industries on these trawl fisheries. Even assuming a small multiplier,it is clear that the community will suffer greatly from the losses associated with suspending the fleet's fishing. While dollar estimates of losses would give some idea of the magnitude of the immediate losses that will be suffered by the closure,they cannot begin to capture the true effect of the closure on the community.The near year-round operation of the trawl fleet fills critical gaps in economic activity that arise because of the seasonality of other fisheries, such as the salmon,fixed gear groundfish and herring fisheries.The activity generated by the trawl fleet allows the community to maintain many year round residents that might Page 3 of 9 Draft Letter to the North Pacific Fisheries Management Counc... AGENDA ITEM #2.a. North Pacific Fishery Management Council May 22,2015 Page 2 otherwise occupy a transient workforce.Maintaining this segment of the population is important to the social fabric of the community.Clearly,the losses to Kodiak from the closure will be substantial and irrevocable. The social repercussions of these types of losses are extremely detrimental to a community and its residents. We respectively request that National Oceans and Atmospheric Administration(NOAA) work with the Secretary of Commerce to promulgate emergency regulations that would make additional Chinook salmon available to the non-pollock non-rockfish GOA catcher vessel fisheries so that these fisheries can be open for the remainder of 2015.The proposed action to allocate additional Chinook salmon to the fishery is a reasonable response to a circumstance where inaction will result in substantial and irrevocable harm to these fisheries and the community of Kodiak. In considering this action,the Council should consider that the scientific data has improved since the Council's action establishing the cap.The primary motivation for the Council's action was speculation that the Chinook salmon taken in the trawl fisheries were wild salmon from Alaskan stocks of concern.Recent salmon genetic data suggest that 97%of the fish caught as bycatch in the trawl fisheries are from Southeast,British Columbia,and the Pacific Northwest where the stocks consist mostly of hatchery fish and that wild Alaskan stocks are virtually unaffected by this bycatch. We also ask that the Council immediately task its staff with the development of a discussion paper to examine this issue.The paper should first explore whether the foundation of the Council's action(i.e.,the protection of Alaska salmon stocks)is a reasonable basis for the limit.The paper should also examine the breadth and scope of effects of the closure on the Kodiak-based trawl fishery,dependent industries,and the Kodiak community. Finally,we ask that the Council expedite the development of the GOA trawl bycatch management program that is presently scheduled for the Council's October meeting.That action is critical to allowing fishery participants to achieve the Council's bycatch management objectives while maintaining balanced and sustainable fisheries and healthy harvesting and processing sectors. We encourage timely Council progress in advancing a cooperative management program to provide tools for the fleet to address bycatch restrictions. Sincerely, OFFICE OF THE MAYOR ]enrol Friend 'ham;�ti+�v-%s.reizu lations.ens%,ig!documentbetail;D--NOAH-NMpS-2013-0077-0011 page 25 Page 4 of 9 Draft Letter to the North Pacific Fisheries Management Counc... AGENDA ITEM #2.a. From: Heather McCarty To: Nava lay CC: Julie Bonney;Blll Roberts:Chris Lvndv John Whiddon Subjwt Re:One leper to NPFMC Date: Monday,May 11,2015 4:30:39 PM Thanks,Nova. To be clear,the letter was not presented to the KFWG,so does not come with a recommendation,but the FWG did have a discussion about two of the three basic points in the letter.Those two were l)transferring,or rolling over,available salmon bycatch into the closed fishery so it could be prosecuted,and 2)the importance of moving forward with the"tools" package at the Council to help avoid such problems in the future. On the first point,at the FWG meeting,Julie,you talked about rolling over salmon from the rockfish fishery as well as asking for emergency action to allow rollover from Pollock.This letter is more general,so leaves it open as to where the added salmon bycatch allowance might come from. Also,this letter suggests that the Council should undertake a discussion paper,essentially starting a new process to take a look at the size of the chinook bycatch cap because of the preponderance of hatchery chinook in the bycatch,according to the genetic reports.The FWG did not discuss this,so I think the case should be made to the Borough Assembly. On the second point,the encouragement to the Council to move forward with GTBM,the FWG certainly has discussed this a number of times,and the City and Borough put it into their most recent letter to the Council--albeit a ways back! The only sticking point there might be that the letter asks specifically for cooperative management,which is choosing a path. I'm not sure how the Assembly will deal with this. 1 am happy to help by doing a summary of the previous position,or you could just provide the old letter. Best,Heather On May 11,2015,at 8:10 AM,Nova Javier wrote: Hello, Attached is the formatted letter, I corrected the wording to"be open for the remainder of 2016"as requested. I will remove the Draft Letter to the Observer Advisory Committee for Monitoring Improvement and keep the Draft Letter to the North Pacific Fisheries Management Council Requesting an Emergency Rule on the agenda. Thank you, Nova M5 Nova M.Javier,MMC Borough Clerk Page 5 of 9 Draft Letter to the North Pacific Fisheries Management Counc... AGENDA ITEM #2.a. 710 Mill B Road Kodiak,AK 99615 Office Number:(1307)486-9310 P01115111 IT RECORD'S DISU OSL11113111:Tim„,eiinad aind iiesplainses lai Ch iIs ennall 3111T SlUb*t tali) primmons III the Allal:11ka Statutier,and umu ay[:u p im:ude avaldbll)lIe to the Ipm.biiliz ulpioini III ecl III uesl. <NPFMC Request for Emergency Rule Revised.doc> Page 6 of 9 Draft Letter to the North Pacific Fisheries Management Counc... AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH AGENDA STATEMENT " MAY 21,2015 ASSEMBLY REGULAR MEETING TITLE: Resolution No. FY2016-01 Establishing The Minimum Tax Levy And The Minimum Amount Of Funds To Be Made Available From Local Sources For The Kodiak Island Borough School District For The Fiscal Year Beginning July 1, 2015 And Ending June 30,2016. ORIGINATOR: Meagan Christiansen FISCAL IMPACT: Yes 10,320,000 FUNDS AVAILABLE: Yes Account Number: various Amount Budgeted: 10,320,000 SUMMARY STATEMENT: KIBC 3.15.030B provides that the school district shall submit to the manager the proposed budget and local support requirements for the school by the 30th of April.The School Board submitted their Budget on April 23,2015. Alaska Statutes 14.14.060c provides that if the assembly does not,within 30 days,furnish the School Board with a statement(resolution)of the sum to be made available,the amount requested in the School Board budget is automatically approved. Per Borough Code,the Assembly determines the total amount of money to be made available from local sources for school purposes and shall furnish the School Board with a statement (resolution)of the sum to be made available. KIBC 3.15.050 provides that by June 10 the Assembly shall appropriate the amount to be made available from local sources for that purpose in the Borough budget. KIBC 3.35.060E provides that the property tax levy for school and municipal purposes shall be separately made and fixed. KIBC 3.60.020 provides that all motor vehicle registration taxes will be allocated to the area wide school system. The Kodiak Island Borough School District has requested a local contribution of$10,905,600. At a mill rate of 8.25 mills the estimated property tax revenues for education will be $10,320,000. RECOMMENDED MOTION: Move to adopt Resolution No. FY2016-01. Kodiak Island Borough Page 7 of 9 Resolution No. FY2016-01 Establishing the Minimum Tax Levy a... AGENDA ITEM #2.b. 1 Introduced by; Borough Manager 2 Requested by: Sdwd Distdd Board Drafted by: Rnance Diredor 3 Introduced on 0512112015 4 PubNc Headng: 0512112015 5 Adopted on: 6 7 KODIAK ISLAND BOROUGH 8 RESOLUTION NO.FY2016-01 9 30 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND 11 BOROUGH ESTABLISHING THE MINIMUM AMOUNT OF FUNDS TO BE 12 MADE AVAILABLE FROM LOCAL SOURCES FOR THE KODIAK ISLAND 13 BOROUGH SCHOOL DISTRICT FOR THE FISCAL YEAR BEGINNING 14 JULY 1,2015 AND ENDING JUNE 30,2016 15 16 WHEREAS, Kodiak Island Borough Code of Ordinances 3.15.030E provides that the 17 Kodiak Island Borough Board of Education shall submit the proposed budget and local 18 support requirements for the schools by April 30;and 19 20 WHEREAS, the Kodiak Island Borough Board of Education submitted their proposed 21 budget and local support requirements for the schools on April 30;and 22 23 WHEREAS, within thirty days after receipt of the school district budget,the assembly shall 24 determine the amount of funds to be made available from local sources for school purposes 25 and shall furnish the Board of Education with a statement of the sum to be made available; 26 and 27 28 WHEREAS, the Board of Education has submitted their FY2016 budget at $46,923,938 29 which Includes a request for local funding(Kodiak Island Borough)of$10,905,600. 30 31 WHEREAS, the amount of funds to be appropriated from local sources for school purposes 32 will be Incorporated Into Ordinance No. FY2016-01, the Borough's fiscal year 2016 33 appropriation and tax levy ordinance;and 34 35 WHEREAS, FY2016 motor vehicle registration taxes are estimated at$280,000;and 36 37 WHEREAS, $140,000 can be transferred into the Education Support Fund from the 38 Facilities Fund for School Building insurance;and 39 40 WHEREAS,the Fiscal Year 2016 assessed value is estimated at$1,200,000,000(one billion, 41 two hundred million);and 42 WHEREAS, at an assessed value of$1,200,000,000(one billion,two hundred million)and a 43 mill rate of 8.25 mills the education support fund will receive$9,900,000 In real and personal 44 property tax revenues;and Kodiak Island Borough,Alaska Resolution No.FY2016-01 Page 1 of 2 Page 8of9 Resolution No. FY2016-01 Establishing the Minimum Tax Levy a... AGENDA ITEM #2.b. 45 WHEREAS, the School District appropriation stated in this resolution may be adjusted as 46 part of the Borough budget process. 47 48 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 49 BOROUGH that the minimum amount to be made available to the Kodiak island Borough 5o School District from local sources for the fiscal year ending June 30, 2016 is set at 51 $10,320,000 for bath the direct appropriation and In kind services. 52 53 NOW,THEREFORE,BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK 54 ISLAND BOROUGH that a mill levy of at least 8.25 mills for education support will be set for 55 the fiscal year ending June 30,2016. 56 57 NOW,THEREFORE,BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK 58 ISLAND BOROUGH that a determination regarding additional funding may be made available 59 to the Kodiak Island Borough School District based upon federal, state, and local funding 60 available for the fiscal year ending June 30,2016. 61 fit NOW,THEREFORE,BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK 63 ISLAND BOROUGH any in-kind service expenditures over the budgeted amounts will have to 64 be absorbed by the Kodiak Island Borough School District. 65 66 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 67 THIS DAY OF MAY,2015 68 69 KODIAK ISLAND BOROUGH 70 71 72 73 Jerrol Friend,Borough Mayor 74 75 ATTEST: 76 77 78 79 Nova M.Javier,MMC,Borough Clerk Kodiak Island Borough,Alaska Resolution No.FY2016-01 Page 2 of 2 Page 9 of 9 Resolution No. FY2016-01 Establishing the Minimum Tax Levy a.... Back ground of the KFWG meeting and the draft letter under consideration by the Kodiak Island Borough The Trawl industry informed the Kodiak Fishery Work Group (KFWG) at their May Oh meeting of the recent non-pollock non-rockfish catcher vessel sector closure on May 3`d that shut down the flatfish and cod fishery for the Gulf of Alaska catcher vessel trawl sector for the remainder of the year. Julie Bonney gave a status report to the work group about the closure and potential options to mitigate the economic impacts to the industry and the community, both short to and long term. During her presentation she noted that the trawl industry hadn't met yet to develop a position about what the "ask" should be to the community governments. She also noted that the Agency was still waiting for some recent observer data to enter the system so the final Chinook salmon numbers were not yet available to understand what the Chinook salmon bycatch was in comparison to the 2,700 fish cap for the sector. Items that were discussed at the work group meeting included concerns about how the bycatch data is generated to manage the fishery—basket samples versus census trip counts, temporal observer deployments within the Os system and observer deployment issues for vessels that deliver to tenders. To restart the fishery, Julie suggested that the governments could potentially ask the Council/NO for an emergency rule to make additional Chinook salmon available to the CV non-pollock non- rockfish cap to support additional fishing opportunity in 2015. The KFWG requested that Heather draft letters to help in both these efforts. To be clear, the proposed letter that is being considered at the KIB work session was not presented to the KFWG, so does not come with a recommendation, but the KFWG did have a discussion about two of the three basic points in the letter. Those two were 1) transferring, or rolling over, available Chinook salmon bycatch into the closed fishery so it could be prosecuted, and 2) the importance of moving forward with the "tools" package at the Council to help avoid such problems in the future. The letter also suggests that the Council should undertake a discussion paper, essentially starting a new process to take a look at the size of the Chinook bycatch cap because of the preponderance of hatchery chinook in the bycatch, according to the genetic reports. The FWG did not discuss this issue. On the first point, rolling over salmon at the FWG meeting, Julie talked about rolling over salmon from the rockfish fishery as well as asking for emergency action to allow rollover of Chinook salmon from potentially the pollock cap. This letter is more general, so leaves it open as to where the added salmon bycatch allowance might come from. It should be noted that Amendment 97 allows Chinook salmon savings to be rolled from the rockfish program (RP) to the CV non-pollock non-rockfish fisheries on October 1. This is not an "ask" to the Council since it is already authorized. Presently, the likelihood that the industry can save the fall trawl non-pollock non-rockfish fishery with RP Chinook salmon savings is highly unlikely due to the present overage of 150200 Chinook in the CV non-pollock non-rockfish sector, the requirement for 150 Chinook to remain available to the RP until Nov 15 when the RP fishery closes and the needed Chinook salmon to support fishing within the RP fisheries from May I to Oct 1 (600 fish if the industry's bycatch rates is the lowest on record within the R.P fishery). The Chinook salmon cap for the RP program is 1,200 fish and between 400 and 500 fish is needed to support fishing by the non-pollock non-rockfish fisheries in October. The total projected usage in comparison to the 1,200 RP cap is 950 fish, not enough rollover(350 fish) to restart the fishery. Thus only way to restart the fishery is to get additional Chinook salmon from a different source. On the second point, the encouragement to the Council to move forward with GTBM, the FWG certainly has discussed this a number of times, and the City and Borough put it into their most recent letter to the Council. According the KIB/City letter sent to the NPFMC on April 1, 2014, "We strongly support the Council's initiate to reduce bycatch and encourage timely Council progress in advancing a cooperative management program as a tool in this effort." T N Z 0 IN ~ C) m fin IT) 0 W 46 4b.' � mA ran u°a Im IM i pA _.. � t x W, � �� uI IM CL F%J ,tom w u- rA m °,411 _.. ..,„ u�a CD 0 m , u j aA� IN h IN 4 RA £ 7 IC IC �dru _ . w Wax iU.0 ..... ».,... ,... A°9 �4 �,d"y' „A i,,� Bit C!1 ' 4 p M g � 4 4 I w" = 4 Y� Rai ��. ��. .,. W... r�. a e m 0 An I N I N dAY C CL cm u qry = ¢ IUA m m.mm. .,.,. w co W •" • A Dj t Cr 44 -4 lu-% I".a 0 .hip i u '14 -4 Mob '"WAS ILO U B@ C) 9 & U'W Olt ... .... ..... R' ... 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C, CUD 0 0 Q�40 0 0 L40 0 0 Cl 44 Uk w ens In '1303 o 06 x LU 0 E 0 C3 ut 69 fs LL E E O In CA do c O X LL E c 2L C%l 6 O C%, KODIAK ISLAND BOROUGH WORK SESSION Work Session of: Please PRINT your name Please PRINT your name . � 4 ,. �. �. jca5�g 0 C) L1e—v-nc—FAd—w-r-- c t° � ., vi o j KODIAK ISLAND BOROUGH WORK SESSION Work Session of: s \�A , -jbkS Please PRINT your name Please PRINT your,name fe 7' /(p &CIO i o�� )7 �,, lie HIM