05/21/2015 Regular Meeting KODIAK ISLAND BOROUGH
Assembly Regular Meeting
May 21, 2015
A regular meeting of the Kodiak Island Borough Assembly was held on May 21, 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.
The invocation was given by Major Michael Bates of the Salvation Army. Mayor Friend led the
Pledge of Allegiance.
Present were Mayor Jerrol Friend, Assembly members Carol Austerman, Aaron Griffin, Larry
LeDoux, Chris Lynch, Dan Rohrer, and Rebecca Skinner. Also present were Borough Manager
Bud Cassidy, Finance Director Karl Short, Deputy Clerk Jessica Kilborn, and Assistant Clerk
Angela MacKenzie.
ROHRER moved to excuse Assembly member Frank Peterson who was absent due to personal
leave.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA AND CONSENT AGENDA
LEDOUX moved to approve the agenda and consent agenda.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
Regular meeting minutes of April 2 and April 16, 2015; and special meeting minutes of April 23
and April 30, 2015 were approved under the consent agenda.
AWARDS AND PRESENTATIONS
Discover Kodiak Executive Director Chastity McCarthy gave an update to the Assembly.
Finance Director Karl Short gave the FY2016 budget presentation.
CITIZENS' COMMENTS
Judi Kidder, Jean Barber, Kyle Crow, Barbara Cobban, David Masinter, Teresa Storch, Costas
Giannopoulos, and Timothy Shapland spoke on the closure of Jackson's Mobile Home Park and
the implications to the residents being displaced and offered suggestions.
Dick Rohrer commented on the FY2016 budget.
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Kyle Crow, Scott Arndt, and Mel Stephens spoke in opposition to Resolution No. FY2015-22
opposing Navy Training exercises in the Gulf of Alaska in June 2015.
Mel Stephens spoke in opposition to the approval of Amendment B to Contract No. FY2013-14
to extend the Borough Manager's Contract.
Theresa Peterson, Julie Bonnev, and Alexus Kwachka spoke to the Chinook Salmon letter
versions and offered suggestions for the emergency rule.
COMMITTEE REPORTS
Assembly member Lynch spoke to the Kodiak Fisheries Work Group Community forum that
took place May 12, and announced the follow up meeting was scheduled for Wednesday, May
27, 2015.
PUBLIC HEARING
A. 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.
ROHRER moved to adopt Resolution No. FY2016-01.
KIBC 3.15.0306 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.
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.
The Kodiak Island Borough School District had requested a local contribution of$10,905,600. At
a mill rate of 8.25 mills the estimated property tax revenues for education would be
$10,320,000.
Mayor Friend opened the public hearing.
Jean Barber suggested reevaluating the budget due to declining student enrollment.
Judi Kidder encouraged cautious spending.
Mayor Friend closed the public hearing.
GRIFFIN moved to amend Resolution No. FY2016-01 to 8.85 mils/ $10,620,000 direct
contribution and in-kind services plus vehicle tax for a total estimate of$10,912,000.
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Assembly member Griffin expressed concerns for the students and faculty having programs and
services cut due to lack of funding and that the need for higher funding was necessary.
ROLL CALL VOTE ON MOTION TO AMEND FAILED FOUR TO TWO: Austerman, LeDoux,
Rohrer, and Skinner(Noes); Griffin and Lynch (Ayes).
ROLL CALL VOTE ON MAIN MOTION CARRIED FIVE TO ONE: LeDoux, Lynch, Rohrer,
Skinner, and Austerman (Ayes); Griffin (No).
B. 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.
ROHRER moved to adopt Ordinance No. FY2015-01 B.
The budget adjustment accounted for the following:
• State PERS on behalf of revenues and expenditures
• Moved the Renewal and Replacement fund loans from the Facilities Fund to the Hospital
Enterprise Fund
• Moved $764,149 from the Hospital Fund to the Facilities Fund paying off that inter-fund
loan
• Accepted two grants
• Approved spending $200,000 of the Womens Bay Fire Department's fund balance on
the Womens Bay Fire Hall addition
• Increased the Borough Attorney's budget by $47,500 due to unanticipated litigation
expenses
ROHRER moved to amend Ordinance No, FY2015-01 B by substitution.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: LeDoux, Lynch,,
Rohrer, Skinner, Austerman, and Griffin.
Mayor Friend opened the public hearing.
Scott Arndt spoke to the use of the Hospital Enterprise Fund.
Mel Stephens and Judi Kidder spoke to the loan from the Hospital Enterprise Fund and offered
other options.
Mel Stephens also addressed the Attorney's budget.
Mayor Friend closed the public hearing.
Assembly member Rohrer clarified the use of the Hospital Enterprise Fund.
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ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Lynch,
Rohrer, Skinner, Austerman, Griffin, and LeDoux.
C. State of Alaska Alcoholic Beverage Control Board for a Liquor License Transfer of
Ownership and Restaurant Designation Permit for Island Hotels, LLC dba Chart Room
#600.
LEDOUX moved to voice non-protest to the State of Alaska Alcohol Beverage Control Board for
a Liquor License Transfer of Ownership and Restaurant Designation Permit for Island Hotels„
LLC dba Chart Room #600.
The application was for a liquor license transfer of ownership and restaurant designation permit
for the Chart Room. The Clerk's office followed the procedure in KIBC 5.01.030 New license
and transfer procedure.
Note: Public hearing notices were mailed to 177 landowners on May 4, 2015. One public
hearing response was received and provided to the Assembly.
Mayor friend opened the public hearing.
Scott Arndt spoke in favor of the transfer.
Mayor friend closed the public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Rohrer, Skinner, Austerman,
Griffin, LeDoux, and Lynch.
D. State of Alaska Alcohol Beverage Control Board Liquor License Transfer of Ownership for
Island Hotels, LLC dba Kodiak Harbor Convention Center#3480.
LYNCH moved to voice non-protest to the State of Alaska Alcohol Beverage Control Board for a
liquor license transfer of ownership for Island Hotels, LLC dba Kodiak Harbor Convention
Center#3480.
The application was for a liquor license transfer of ownership for the Kodiak Harbor Convention
Center. The Clerk's office followed the procedure in KIBC 5.01.030 New license and transfer
procedure.
Note: Public hearing notices were mailed to 145 landowners on May 4, 2015. There were no
public hearing responses received.
Mayor Friend opened the public hearing.
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David Masinter spoke to the inadequate parking surrounding the activities that happen at the
Kodiak Harbor Convention Center but did not oppose the transfer.
Mayor Friend closed the public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Austerman, Griffin,
LeDoux, Lynch, and Rohrer.
BOROUGH MANAGER'S REPORT
Manager Cassidy reported on the following:
• Met with the Executive Director of the Alaska Industrial Development and Export
Authority on where the Borough may be able to use his services
• Stopped the request for an attorney's opinion, staff inadvertently sent the request before
receiving support from a second assembly member
MESSAGES FROM THE BOROUGH MAYOR
None.
UNFINISHED BUSINESS
1. Approval of Amendment B to Contract No. FY2013-14 To Extend the Borough Manager's
Contract.
The motion before the Assembly was to approve amendment B to Contract No. FY2013-14
extending the Borough Manager's Contract to May 30, 2016.
The Managers three year employment contract expired January 16, 2016. During his two year
evaluation held on April 2, 2015, he announced that he would not seek another three year term
and provided the Assembly with nine 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 the extension, at a minimum, continue until April 30, 2016. Further extensions, if
necessary, would 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 Manager's contract be extended beyond the January
16, 2016 date, it would 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 was important to begin advertising and the formal search for his replacement.
The item was postponed from the April 16th regular meeting. The original motion before the
Assembly was 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. The Assembly ended up dividing the
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motion and postponed the approval of the contract to the regular meeting of May 21, 2015.
Direction was given to staff to proceed forward in searching for a Borough Manager,
Manager Cassidy provided a revised Amendment B which further amended extension date to
June 30, 2016 and to accept the changes to the contract terms.
AUSTERMAN moved to further amend Amendment B to Contract No. FY2013-14 to change the
extension date to June 30, 2016 and accept the changes to the contract terms as presented.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED FIVE TO ONE: Austerman, Griffin,
LeDoux, Lynch, and Rohrer(Ayes); Skinner (No).
ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED FIVE TO ONE: Griffin,
LeDoux, Lynch, Rohrer, and Austerman (Ayes); Skinner(No).
2. Ordinance No. FY2015-10 Amending Various Sections in Title 3 Revenue and Finance
Chapter 3.35 Real Property Tax.
The motion before the Assembly was to adopt Ordinance No. FY2015-10. This ordinance was
postponed from the May 7, regular meeting.
Clerk's Note: A second substituted version of Ordinance No. FY2015-10 was presented at the
May 14 work session and was necessary to hold a public hearing on the second version.
The ordinance would align foreclosure sections of the Borough code, specifically 3.35.160
Foreclosures (renamed), with Alaska State Statues and repeal others, 3.35.170 Publication of
the foreclosure list through 3.35.260 Deed to borough, in favor of the established State Statues
processes. It would also clarify delivery requirements for tax payments.
The proposed ordinance would also clarify the definition of"mobile home", and, when the mobile
home resided on rented property, it would be assigned the identity of responsible parties for
ownership updates to the Borough in order to facilitate tax collections. It also reaffirmed that
delinquent taxes on mobile homes could be collected by a personal action suit against the
owner.
The ordinance would specify any Board of Equalization appeals were to be filed in the Third
Judicial District, Kodiak, Alaska. The ordinance would also update any staff titles from Treasurer
to Finance Director that were mentioned within Borough Code sections 3.35.010-3.35.160.
On May 7, 2015, the ordinance was postponed to the next regular meeting of the Assembly. A
revised substituted version was attached in the packet proposing removal of the wording in
Lines 155-158 that stated the following words "if this information is not received by the assessor
by February 1, all mobile homes, structures and fixtures situated on the land shall be assessed
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to the land owner unless the borough otherwise confirms ownership by another owner of
record."
LYNCH moved to amend Ordinance No. FY2015-10 by Substitution No. 2 and advance
Ordinance No. FY2015-10 to public hearing at the next regular meeting of the Assembly.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: LeDoux, Lynch, Rohrer, Skinner,
Austerman, and Griffin.
3. Ordinance No. FY2015-11 Amending Various Sections in Title 3 Revenue and Finance
Chapter 3.40 Personal Property Tax.
The motion before the Assembly was to adopt Ordinance No. FY2015-11. This ordinance was
postponed from the May 7, regular meeting.
Boats and vessels with an overall length longer than 20 feet, measured bow to stern and used
for commercial purposes, were currently taxed at a rate of $1 per foot. One purpose of the 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 did not provide enough funds to make the administration and
maintenance of these personal property accounts cost effective for the Borough, therefore it
was the Assessor's recommendation to remove section 3.40.070 Classibcation of boats and
vessels from the Borough Code.
AUSTERMAN moved to postpone Ordinance No. FY2015-11 to the regular Assembly meeting
of August 20, 2015.
ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Lynch, Rohrer,
Skinner, Austerman, Griffin, and LeDoux.
NEW BUSINESS
Contracts
None.
Resolutions
1. Resolution No. FY2015-22 Opposing Navy Training Exercises in the Gulf of Alaska in June
2015.
LYNCH moved to adopt Resolution No. FY2015-22.
The item was requested by Assembly member Lynch to start discussion whether the Assembly
wished to submit a letter or resolution regarding the GOA Navy Training off the coast of Kodiak.
Attached to the packet was a resolution adopted by the City of Cordova. Mr. Tom Lance was
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present to address the assembly regarding the matter. At the May 14 work session of the
Assembly, it was decided to add a resolution to the meeting packet of May 21 for approval.
A brief power point presentation opposing the Navy testing was presented by Emily Stolarcyk,
Program Manager for Eyak Preservation Council,
ROLL CALL VOTE ON MOTION CARRIED FOUR TO TWO: Rohrer, Skinner, Austerman, and
Lynch (Ayes)„ Griffin and LeDoux (Noes).
Ordinances for Introduction
1. 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).
ROHRER moved to adopt Ordinance No. FY2016-01 in first reading to advance to public
hearing at the next regular meeting of the Assembly:
The ordinance budgets for FY2016 Revenues and Expenditures for the General Fund, Special
Revenue Funds, Debt Service Funds, and Enterprise Funds. The ordinance also adds multi-
year projects to the capital project funds.
The ordinance sets FY2016 mill rates and sets the tax rates for commercial aircraft.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Austerman, Griffin,
LeDoux, Lunch, Rohrer.
Other items
1. Authorization for a Letter to the North Pacific Fishery Management Council Requesting an
Emergency Rule.
LYNCH moved to grant authorization for the Mayor to sign the letter (version # 3) regarding
Chinook Salmon bycatch to the North Pacific Fishery Management Council requesting an
emergency rule with the following corrections: line three change 'Will" to "may"; add we
respectfully request and move first two sentences from paragraph four up to the first paragraph;
last paragraph add "action is critical" to end of first sentence.
At the Kodiak Fisheries Work Group meeting of May 6, 2015, the work group recommended that
Ms. Julie Bonney and Fishery Analyst Heather McCarthy draft two letters to present to the City
Council and Borough Assembly. These letters were:
• Observer Advisory Committee for Monitoring Improvement
• North Pacific Fishery Management Council Requesting an Emergency Rule
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Assembly member Skinner submitted a revised version of the letter which was attached to the
packet.
There were three versions of the letter in the packet, Ms. Julie Bonney's letter, Assembly
member Skinner's letter, and Assembly member Lynch's letter.
SKINNER moved to amend by moving the intent of the letter to the first paragraph from letter
version one to the top of letter version three.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Austerman, Griffin,
LeDoux, Lynch, Rohrer, and Skinner.
ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Griffin,
LeDoux, Lynch, Rohrer, Skinner, and Austerman.
2. Confirmation of Mayoral Appointments to the Joint Building Code Review Committee (Bill
Barton and Scott Arndt).
LEDOUX moved to confirm the Mayoral appointments of Bill Barton for a seat to expire 2015
and Scott Arndt for a seat to expire 2016 on the Joint Building Code Review Committee.
The Mayor and Assembly wished to resurrect the Joint Building Code Review Committee. Since
most of the seats had expired on the Committee, it was necessary to appoint new members.
The Clerk emailed the Arch itecturallEngineering Review Board Members and the following
responded by the deadline of Friday, May 8.
• Robert"Bill" Barton
• Scott Arndt
The seats were appointed by the Mayor and confirmed by the Assembly. The composition of the
Committee would be comprised of two representatives from the Borough and an Assembly
member (Dan Rohrer) and two City representatives and a City Council member. In the past,
there were three appointments from the City plus a Council member. City Clerk Marlar noted
that the Council agreed that both the Borough and City should only have two regular
representatives on the Committee.
Based on the historical documentation provided, the Borough representatives were appointed
from the Architectural/Engineering Review Board.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: LeDoux, Lynch, Rohrer, Skinner,
Austerman, and Griffin.
3. Declaring a Seat on the Architectural/Engineering Review Board Vacant (Gregg Hacker).
This item was approved under the consent agenda.
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N
On Wednesday, April 29, 2015, Mr. Hacker submitted his resignation from the Architectural
Review Board (ARB) for a seat term to expire December 2016. The Assembly accepted, with
regret, the resignation of Mr. Gregg Hacker from the ARB, and directed the Borough Clerk to
advertise the vacancy per Borough Code.
4. Declaring Seats on the Fire Protection Area No. 1 Board Vacant (Jim Pickett and Kiela
Pickett). This item was approved under the consent agenda.
On Tuesday, April 28, 2015, Mr. and Mrs. Pickett submitted their resignations from the Fire
Protection Area No. 1 Board (FPA1) for seat terms to expire December 2015 and December
2016. The Assembly accepted, with regret, the resignations of Mr. Jim Pickett and Mrs. Kiela
Pickett from the (FPA1), and directed the Borough Clerk to advertise the vacancy per Borough
Code.
5. Declaring a City Seat on the Planning and Zoning Commission Vacant (Patricia Olsen).
This item was approved under the consent agenda.
On Wednesday, May 6, 2015, the Clerk's Office received a letter of resignation from Ms. Patricia
Olsen for a City seat on the Planning and Zoning Commission (P&ZC) for a seat term expiring
December 31, 2016. The Assembly accepted, with regret, the resignation of Ms. Olsen from the
P&ZC, and directed the Borough Clerk to advertise the vacancy per Borough Code.
Applications received for the vacancy would be forwarded to the City Clerk's Office for
recommendation to the Assembly by the Kodiak City Council.
CITIZENS' COMMENTS
Judi Kidder, Teresa Starch, and David Masinter expressed gratitude to the assembly for their
diligence on the difficult issues presented.
Teresa Storch expressed caution on disposal of grass clippings in to the ocean.
David Masinter announced a service for the veterans on Memorial Day at the city cemetery. He
also made comments on yard waste and waste dumping occurring outside of the landfill.
Julie_Bonney expressed gratitude for the authorization of the letter to the North Pacific Fishery
Management Council requesting an emergency rule.
ASSEMBLY MEMBERS' COMMENTS
Assembly member LeDoux spoke to the need for affordable land and housing options for the
community. He thanked Mr. Hacker for his service on the ARB board. Assembly member
LeDoux expressed his view point on Resolution No. FY2015-22. He also spoke to the difficult
position of having to cut School District funding and not knowing what those implications would
be.
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Assembly member Austerman thanked Mr. Hacker(ARB), Mr. and Mrs. Pickett (FPA1), and Ms
Olsen (P&ZC) who had served the community through their respective boards.
Assembly member Rohrer spoke on smaller lot sizes that would allow for trailers or smaller
homes as a viable option for affordable housing. He also commented that the community was
supportive of school district funding and senior tax exemptions but there was a need to be
supportive of all citizens and desired ways to support the whole community.
Assembly member Skinner supported the budget decisions and comments made by Assembly
member LeDoux and Rohrer regarding the school district funding, thanked Mr. Hacker for his
service, supported having discussion on the closure of Jackson's Mobile Home Park to explore
options, and thanked the public for their attendance.
Assembly member Griffin also supported a discussion on the implications of Jackson's Mobile
Home Park closure, suggested reestablishing a housing task force, and seconded to the legal
opinion requested by Assembly member Peterson, and also expressed the need for the Navy to
be able to train appropriately.
Announcements
The Borough Offices would be closed on Monday, May 25 in observance of the Memorial Day
holiday.
The next Assembly work session would be held on Thursday, May 28 at 7:30 p.m. in the
Borough Conference Room. The next regular meeting was scheduled on Thursday, June 4 at
7:30 p.m. in the Borough Assembly Chambers.
ADJOURNMENT
ROHRER moved to adjourn the meeting.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Rohrer, Skinner,
Austerman, Griffin, and LeDoux.
The meeting was adjourned at 11:18 p.m.
KODI�K ISLANb O GH
ATT T: errol Friend, ayor
Nova M. Javier, MMC, Borough lerk Approved on: June 18, 2015
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