2016-03-31 Work Session Kodiak Island Borough
Assembly Work Session
Thursday, March 31, 2016, 6:30 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 - 20 a., A-1 Timber Consultants Presentation
2016-03-28 Chiniak Saly . e a est ograis I
KIB Timber SgIvage Proosal from -1 Timber
1 - Dvorak Memo PSA for Insgegfion andQuality
Assurance Services
b. GSA Lease Discussion with GSA and NOAA Representatives
and Staff
21 - 64 C. Budget Discussion
2016-03-31 Budqet Update
3., PACKET REVIEW
a. NEW BUSINESS
CONTRACTS
Contract No. FY2016-44 Employment Contract Between the
Kodiak Island Borough Assembly and Mr. Michael Powers as
Borough Manager.
RESOLUTIONS
Resolution No. FY2016-33 Approving A Lease Agreement
Between the Kodiak Island Borough and the General Services
Administration for a Portion of the Kodiak Fisheries Research
Center.
4, MANAGER'S COMMENTS
Visit our website,a
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Page 1 of 65
5. CLERK'S COMMENTS
6. MAYOR'S COMMENTS
7. ASSEMBLY MEMBERS COMMENTS
8. FUTURE DISCUSSION ITEMS
5 a. 2015-12-15 Ise Io List
Visit our website at
n Llg t� @KodiakBorough
W10inAll �(.Ddl4kak,IUS 91.... .. . 0 Page 2 of 65
/ N
AGENDA ITEM #2.a.
1
NorthWlnd Forest Consultants,LLC
PO Box 134
Chehalis,WA 98532
In s_ t
3/28/2016
Duane Dvorak
Resource Management Officer
Kodiak Island Borough Manger's Office
710 Mill Bay Road Room 118
Kodiak,Alaska 9 615
Mr.Dvorak;
Attached is the Appraisal for the Twin Creek Fire Salvage satisfying the
contract no. 201 n the Kodiak Island Borough and NorthWind
Forest Consultants LLC.
e Staley4Prent caner n
North ind Forest Consultants LLC
Page 3 of 65
-1 Timber Consultants Presentation
AGENDA I .
TWIN CREEK FIRE
SALVAGE SALE APPRAISAL
Xasffak!eland Dash
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Prepared the Kodiak Islaord g2MM tm
NwUjNffljjroijj nam,%cariiGnuil am,u,.c
ChIVIN014s,WA 98532,
Mr.Joe Staley,Forester and President,Northind Forest Consultants,LLC
Page 4 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
Introduction
On March v',2016,the Kodiak Island Borough contracted with Northwind Forest Consultants LLC to
provide an appraisal that establishes the potential net revenue to the Borough from the salvage of fire
damaged timber found on property owned by the Borough using standard appraisal practices.
Sco
in
The scope for this appraisal was to establish;total net volume,log market,total harvest cost,
administration cost and potential gross revenue from the salvaging of timber damaged by the Twin
Creek Fire on property owned y the Borough(scope attached).
Ami2agdR90
The property subject to this report is found on Kodiak Island in section(s)31 and 3 ,township 29 south,
range 18 west and section(s)5 and 6,township 30 south,range 18 west,Seward Meridian and is
approximately 14 air miles southeast of the City of Kodiak.The property contains approximately 900
gross acres of burnt timber based on GIS Identification.
The general macro aspect of this property Is north facing,with some micro aspects of east and west
facing slopes due on terrain.The genera I topography consists of gentle slopes varying between 5 to 1
percent on the north half of the property and three ridges of complex slopes found on the south half of
the property.These ridges have varying slopes of between 5 to 40 percent.The steepest terrain Is found
in the southeast corner of the props
There are fire significant drainages found on the property and are defined by the ridges.Portions of
these drainages are known or believed to be anadromous but additional investigation may be justified.
The timber found on the subject property would best be described as a homogenous mature Sitka
Spruce stand with an average diameter at breast height(D H'of 23 Inches and an estimated average
age of 150 years.
There was significant stand defect and wind damage observed during this assessment.The stand defect
appeared to be fire and due to the age of the trees.The fire had the effect of accentuating this
defect in most cases.The wind damage observed was more recent and was due to the fire weakening of
the tree bole and roots.
_AAggraLsal Method
Our appraisal is based on the Conversion Return method of asset analysis as described in the Society of
American Foresters-Forestry Handbook.In essence the timber owner is converting their timber asset
Into cash or other tangible value.The return value is called the Stumpage Value and is described s the
residual value remaining for payment to the timber owner after all costs for Production have been
subtracted from the Market Sale Price.This return value is eenerallY generalexpressed in dollars per thousand
board feet(MBF).The key components of an appraisal are the Market Sales Price,Total Volume being
Page 5 f 65
-1 TiMber Consultants Presentation
AGENDA ITEM #2.a.
said,and Total Production Costs.The accuracy of these components is strongly influenced by the
experience and knowledge of the appraiser and the base assumptions.
Market Sales is
The Market Sales Price is based on data from reliable sources of market information obtained by the
appraiser from various sources.The base assumptions for the sale of timber from the salvage sale are;
the timber will be sold on a scale basis and the marketing will be on a camp run basis.
The scale will be determined by an independent third party scaling company using Industry standard
practices for determining each logs net volume using Scribner Decimal- log scale.They will certify the
volume to be sold for all parties Involved.
The current practice for marketing in Kodiak is,logs are sold on a Camp Run Basis. at this means is an
average price per thousand board feet(MBF)is establish and this price is applied to all certified volume
removed from the sale,regardless of log size or quality.The volume to be removed from the sale Is
assumed to be all merchantable logs with a top diameter of 6'and a minimum length of 16'plus 10"of
trim. The log must pass Phyto-sanitary requirements and have less than 10%defect as determined by
scaling rules.
For the purpose of this appraisal it was determined that the current average camp run price in Kodiak is
$BW/MBF.This average price Is based on historical markets in conjunction with forecast of future
market potential.
Total Volume
To establish the total estimated volume to be sold,we needed to determine the average volume per
acre and the estimated total acres available for Salvage.The following describes this process.
Volume ngr Acre
We selected seven Lelsnol Harvest Units that were completed and directly adjacent to the KI B Salvage
Sale. These harvest units as selected were of similar age and stand Composition as the stands found on
the salvage area. Using the cut out data supplied by Leisnoi,we identified the total net acres harvested
for each it and the total volume scaled for each unit. With this data we could determine the net
volume per acre harvested from each unit. Of these seven units,we eliminated from the calculation the
highest and the lowest volume per acre to minimize the variation and used the remaining five harvest
units to obtain a weighted average by acreage for net volume removed from the adjacent unit. The
result of this calculation was the average net volume per acre of 26AMBF for all harvest units. This
volume per acre was harvest from an undamaged forest,and we determined through research by
Preston and Holmest at the volume should be discount to account for potential loss of volume due
to the effects of fire on salvaged timber. The damage as determined by the Fire Damage study to be
extensive,we discounted the volume by 10%resulting in a net volume per acre of 23.75MBF. This is net
volume per acre that will be applied to the net acres available for salvage to determine the total volume
for the salvage sale.
Page 6 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
Cut Out Data Analysis of Leisnoi Harvest Units Adjacent KIB Chiniak Timbered Parcel
Unit Total UnotVol. SIS Acres Non-forested Acres Met_Acres dol Ac.
2010-14 710.97 MBF 32.81 32.81 21,669 BF
2012-35 935.80 MBF 37-57 1.18 36.39 25.716MBF
2012-36 1,23142 MBF 59.50 59.50 20.713MBF
x'25;11 37 643-59 MBF 43.501 43115(l) 141795MIlff:
2013-08 564-59 MBF 20.20 20.20 27.950MBF
2013-02 4,121.74 MBF 145.60 7.90 137.70 29333MBF
"71013,,04 19,569 53 IM012 122.59 3215 535.33
mi:2 1r17011114@:
Totals 17,777.64 MBF 619.44 28.7MBF Ave.
26.4 MBF weighted ave.
23-75 MBF per acre
(adjusted for fire effect)
1111"Sam11les not used inc6cullation in,wder to, 111 tile Salnp�le'
Acres gtDeter mins ion
To calculate the acreage available for salvage we turned to Arc GIs to map thea s.The basis used for
this mapping was ortho-rectified satellite imagery(Chiniak—S
SPOT 2015-09-22)that was captured an
September 22nd,2015 just after the Twin Creek Fire.This satelliteimagebest represented the property
area that was affected by the fire.By applying known location data of property lines,streams,riparian
management areas,existing roads and other attributes,it was possible to digitize the areas available for
salvage that were within the property boundaries and excluded riparian management areas.Once the
digitizing was complete Arc GIs calculated the area found in the digitized polygons.We also used Arc GIs
to establish probable road locations based on the identified salvage areas.The result of this process
determined that there is approximately 781 acres available for salvage(see harvest plan map).
From these two processes we estimate there is approximately 18,548.75 MBF(781 acres X 23.75 mbf
per acre)available for salvage.
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® TiMber Consultants Presentation
AGENDA ITEM #2.a.
productionLroduction Costs
Todevelop the production costs necessary to deliver the estimated total volume to market we used a
Cost of Owning and Operating analysis for each cost center identified In the appraisal summary.The
results of that analysis are as follows®
i8-1u �_ ._-- R
/
SPECIE MBF $/MBF TOTAL
__.0
LARS
PITKA CE
18"548.75
ftr�°I�IAII. 68aarena^iOuyn"gar"�
_ wAMali I'islt
iC557"u .' /INTIR
LOGGING t"O"fAI I,aiijl'.LA,RS
y S.ail
HAUL F 171 3,2510,2197"416
y7'S10ar21u7.4lti
F $ 612.150,
R O1,1591,2916"68
ROAD USE FEE
MBF 5,235 $ 971,1027AM)
LOGGING TOTA
�.,, 92,74175
��� yh
SSI.)R'ir YARD MOF_. �...,
IISI" .. $ 25.00
SHIP IILCIAlDING
II'II _ :Il .,tklyiJiii IIBi q'
YCr L ON 11,0, lq' I lyy 1p
(5,493,546 411
SIH 1111)%PIN
MBF �"I„�I. yy
5i.ly"V;Ip15S�"yy"Ilml'I"�I4N7 °t 5w954ar14tl.7151
.f f" IL I-51IIII CHINA lEy _ _ � L'��i��y� � 2194,554 3,5
MBI Ilsltly,r7yw
Iar'7ar 'yy�; �y
2,096,750,,7L)
KIS A10111MINISTRA-Floiq
MBI 5i tyfl w7°43 75
y�y 11 U II,I,E V II M'Lb El: _
_ 4ar Nyrl�"ni3 �YLanoui "�!kly
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Page 8 of 65
®1 Timber Consultants Presentation
AGENDA ITEM #2.a.
I Ion
�Sased on this appraisal and the appropriate base assumptions,the potential net revenue the Aorough
may expect from the salvage of the fire damaged timber found on their property as described in this
report is Jla24,007.00dollars.
Res tt I ubmi e a
i
Jo talev,President of N hwV1,nd Forest Consultants LLC
Enclosures; Harvest Flan Map
Copy of Scope of Work
Page 9 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
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Page 10 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
u
NorthWirld Forest Consultants,LL
PO Box 1346
Chehalis,WA 98532
Duane Dvorak
Resource Management Officer
Kodiak Wand Borough Manager's Office
710 I lli Bay Road Room..l a
Kocddakk AUS.99615
ISE:Scope for Twin Croak Fire Appraisal Propao0
Using curt out dunforrnatdoru on _7 WKS logged adlacent to the Borough
timber my t.aainod to oatab9aatn the net volume per acs and apply it.to tNnu.aures
available to harvest on Borough Land,
Using current and Past rmarket data eatatppi,atr the Gxoss Dollar Value of
the W ntnor salle.
LD90ng to inokrde da`odidn ,'yart rig Processing,,ioaadin dtaurdin gout,bared
and atoipt deaaudii t �_,
-Road buildirtyg to include I dalltn u b rada„rocking surface culverts
aril stream crossings.
Rock gait development and'reclamation. Reclamation does not induurde
Contour establishment
Slash d1spoml,to include Ming the Wash and SeParatIng tido darnwootd,
when accessible to hauling,,from tdna slosh..
-Reclaiming dasi rnatard roads as required irewud by the Borough.
.Reforestation:
-Cost Per acre and total acres to plant-
-cost or StockIng surveys for 2 years
AdMU31wQn_Q=
Contractor
FrOM this data for a standard appraisal l a basis for a Per MBF rate wlill be e?stabhsh
for Potential Pa.yra eril.on the coat woluuirne to be removed.,
Post root to oe&rid 24k .ot1.
Joe Slialey
NorthWind Forest Consultants
Page 11 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
Consultants, Inc.
�PO Box 8��15
Hadiak, Ailf 9961S
(fflicie�a J90 1) 436.8733 e Fax- i90'171 1487 150,36 * e wriall: tmiiiiia:ii�thabornut
March 29, 2016
PROPOSAL TO KODLIK ISLAND BOROUGH
FOR NE GO TA TED SA L E OF
TW17V CREEKS FIRE SAL VA GE TIMBER
A—1 Timber Consultants("A-1")is pleased to provide a detailed description of its
proposal to purchase Kodiak Island Borough CXD3")timber damaged by the 2015 Twin
Creeks Fire in a salvage timber sale.AS 38.05.117 describes a salvage sale as one for
"timber stands that will lose substantial economic value because of... fire,if not
salvaged within two years."
The proposal is for a"stumpage"sale in which A-1 purchases the standing and down
timber on KIB land and pays the KIB for all merchantable logs based on a net Scribner
scaled volume as determined by an independent third party.A-I will make payments to
the KIB every two weeks based on the scaled volume as the timber is harvested.
The Twin Creeks Fire burned approximately 900 acres and likely affected 15-20 million
board feet("MMBF")of green,harvestable timber.'Me fire carried through the tree
crowns within much of the 900 acres and most of that timber is now standing dead.The
North Wind assessment shows that a salvage sale is the best option for both economic
and public safety reasons_
Economically,the marketable life of this fire-damaged timber is 12-18 months.'rhe
volume far exceeds what could be used locally on Kodiak Island.For the last several
years,Asia has been the primary market for Kodiak timber. Exporting timber requires
phytosanitary inspection and certification, which confirms that the logs are pest free. By
late-spring of 2017,however,the burnt to are unlikely to pass this inspection. Without
the phytosanitary certificate,the logs have no value.
Price. A-I and KIB will negotiate a price per thousand board feet("MBF")of
merchantable timber based on the North Wind appraisal and A-I's independent analysis.
'Tay as Cut"payments will be made every two weeks based on the independent third-
party scaling reports of the harvested timber.A-] and the KIB will have equal access to
the scaling reports.
Volume Approximately 15-20 F.
I of
Page 12 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
Time Harvesting 15-20 MMBF of standing and down timber will take approximately
one year:by May 31,2017.
A-I'A_R�eso n s i�bi I i ties.
• State Permits.A-1 will prepare Detailed Plans of Operations("DPO')as required
by the Alaska Forest Resources Practices Act("AFRPA")and,with approval from
the KIEB,submit each DPO to the Alaska Department of Natural Resources.
• Roads and Bridges.A-1 will construct roads and bridges for logging operations
and protection of natural resources.The road construction method is called a
"puncheon overlay"in which woody material is laid down and covered with rock
and gravel.The road essentially lays on top the volcanic ash.Constructing roads
and bridges requires developing nearby gravel pits.A-1 will develop and reclaim
gravel pits in the Timber Harvest Area.A-I estimates it will construct
approximately 7 miles of new roads for access to the area.
• Access.A-1 will access the Timber Harvest Area from one access point on KIB
property(east of Silver Beach)and existing roads on Leisnoi property.A-1 will
obtain all necessary permits from the Alaska Department of Transportation and
Leisnoi.
• Stream Crossings.A-1 will construct the AFRPA-required bridges over
anadromous;streams.A-1 currently anticipates constructing one bridge.
• Stream Buffers.A-1 will locate,mark,and maintain all AFRPA-required
anadromous stream buffers(100 feet on public lands, including KIB lands,and 66'
on private lands)as modified pursuant to approved Alaska Department of Fish&
Game("ADF&G")variances.
• Harvesting Operations.A-I's operation is primarily mechanical cutting with
minimal manual cutting.Mechanical processing occurs in the Timber Harvest
Area.Following processing,A-I transports logs from the Timber Harvest Area to
scaling stations and then to storage facilities for export.
• Harvest of Merchantable Timber.A-I will harvest all trees that meet the
merchantability standards for Kodiak timber: (a)measure a minimum of 8 inches
in diameter on the small end,(b)measure a minimum of 16 feet in length,(c)have
a minimum of 30 board feet,(d)meet all requirements for a Phytosanitary
Certificate,and(e)are not used for road sub-grade or bridge construction.
2 of 3
Page 13 of 65
A-1 Timber Consultants Presentation
AGENDA
I . .
• Slash Disposal. Forest products that do not meet the merchantability standard will
be either well-scattered or piled so to minimize occupation of reforestable ground.
Issues to Address.In moving forward with the terms of the negotiated sale,A-1 and the
KIB should analyze and resolve four issues before finalizing a contract:
• Whether reforestation will be through natural regeneration(passive)or by active
planting of saplings.And if the KID wants reforestation by active planting,then
whether A-l wil I perform the reforestation as part of the salvage contract.
• Whether the KIB will allow A-1 to restrict access to the timber harvest area during
the course of its operations,which will increase the safety and efficiency of the
operation.A-1 proposes installing a gate at the single access point on KIB
property cast of Silver Beach.
• Whether the K113 wants A-1 to leave standing trees in certain identified areas of
wildlife habitat within the Timber Harvest Area.
• Whether the KIB wishes to have access to developed gravel pits for futurc use in
highway maintenance after the conclusion of the salvage sale. Given the close
proximity to the Chiniak Highway,the KIB may request that A-1 not reclaim
certain gravel pits.
With authorization from the Kodiak Island Borough Assembly to move forward with
negotiating the terms of a salvage contract,A-I and its counsel are prepared to work with
the KIB's counsel to finalize an agreement that is acceptable to both parties.
Please let us Mow if you have any questions. We Iook forward to working with you on
this important project.
Sincerely,
J
Tom Loushin
President
3 of 3
Page 14 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
�A-R Kodiak Island Borough
rtr,H OFFICE of the MANAGER
A
710 Mill Bay Road,Room 108
Kodiak,Alaska 99615
n.
Phone(907)486-9304 Fax(907)486-9374
� Email glloJ� � .i����,uu�.uu�i�.u�i
To: Kodiak Island Borough Assembly
Kodiak Island Borough Mayor,Jerrol Friend
Through: Kodiak Island Borough
Bili Roberts,Acting Manager
From: Duane Dvorak,Resource Management Officer
Date: March 29,2016
Re: Professional Services Agreement for Inspection and Quality Assurance services related
to Salvage Harvest on KIB Land.
The KIB assembly is considering a proposal to salvage harvest borough lands that were damaged as a
result of the Twin Creeks Fire. Staff has endeavored to be ready,should the assembly authorize
contract negotiations to move forward,to fully support that effort.
Staff has been advised by the consultant responsible for the appraisal,the Alaska Division of Forestry
and others that it is customary to have a field inspector to periodically review the salvage operations.
This is to ensure compliance with the applicable provisions of the contract with KIB that may be
negotiated between KIB and the chosen salvage harvester. In addition,staff suggests that a subject
matter expert in the area of forest management and related regulations could help staff negotiate the
salvage contract and save the cost of attorney involvement until the fnaI review before presentation to
the assembly.
Attached is a draft professional services contract that would engage Mr. Wade Wahrenbrock,a retired
forester of many years' experience with the State of Alaska Division of Forestry. Mr.Wahrenbrock is
now retired and based in Kenai. He has extensive knowledge of,and expertise in,Kodiak area forest
conditions. The attached contract and proposal are an outline of the type of services that the staff
would hope to obtain from Mr. Wahrenbrock should the timber salvage project move forward.
The total cost for these services is expected to be about$33,000,which staff would propose to break
into two contracts. The initial contract,to be issued under the manager's authority,would be for
salvage contract negotiations only,in an amount Not To Exceed$5,000. At the time a salvage contract
is presented to the assembly,staff would propose to submit a second contract with Mr. Wahrenbrock to
conduct the field inspection work in an amount Not To Exceed$28,000. Staff is proposing these as
sole source agreements,assuming that rationales applicable to a potential salvage contract would
similarly apply to contract for related services necessary to the process. The finding to justify sole
source procurement in this manner is the need to move quickly to ensure the value of the salvage
timber is not lost due to deterioration or insect infestation of the damaged timber. This will preserve
the public's welfare as allowed under KIBC 3.30.070.B.
Page 15 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
OWNER-PROFESSIONAL SERVICES
FEE AGREEMENT
THIS AGREEMENT, made this 1st day of April 2016, between the Kodiak Island Borough, acting by and
through its Borough Manager, party of the first part, and Wade Wahrenbrock, Forest Management
Consultant, a sole proprietor under the laws of the State of Alaska, party of the second part hereinafter
called the Contractor.
WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein
specked and agreed to by the party of the first part, hereby covenants and agrees to provide the
services described in the proposal for Negotiation Services for a Salvage Timber Sale on Kodiak Island
Borough lands near Chiniak, Alaska as authorized in an amount NOT TO EXCEED $5,000.00 based on
sums as described in the fee schedule of the Proposals dated March 25,2016 and March 27,2016,or as
otherwise mutually approved by the parties. Any project exceeding $25,000 will require Assembly
approval.
This contract commences from April 1,2016 through April 21,2016.
The Contractor further covenants and agrees that the entire work shall be done under the administration
and to the complete satisfaction of the Kodiak Island Borough, subject to inspection at all times and in
accordance with the laws of the State of Alaska.
The Contractor further agrees that all of the work and labor shall be done and performed using that
degree of care and skill ordinarily exercised under the same conditions by Forest Management
Professionals practicing in the same field at the same time in the same or similar locality. Professional
services are not subject to, and Contractor cannot provide, any warranty or guarantee, express or
implied, including warranties or guarantees contained in any uniform commercial code.
The Contractor shall indemnify, defend, and hold harmless the Kodiak Island Borough from and against
any claim of, or liability for, negligent acts, errors, and omissions of the Contractor under this Agreement.
The Contractor is not required to indemnify, defend, or hold harmless the Kodiak Island Borough for a
claim of, or liability for, the independent negligent acts, errors, and omissions of the Borough. if there is
a claim of, or liability for, a joint negligent act, error, or omission of the Contractor and the Kodiak Island
Borough, the indemnification, defense, and hold harmless obligation of this provision shall be
apportioned on a comparative fault basis. In this provision, "Contractor" and "Kodiak Island Borough"
include the employees, agents, and contractors who are directly responsible, respectively, to each. In
this provision, "independent negligent acts, errors, and omissions" means negligence other than in the
Borough's selection, administration, monitoring, or controlling of the Contractor, or in approving or
accepting the Contractor's work.
Without limiting the Contractor's indemnification, it is agreed that the Contractor will purchase, at his own
expense and maintain in force at all times during the performance of services under this Agreement, the
following policies of insurance. Failure to maintain insurance may,at the option of the Borough Manager,
be deemed Defective Work and remedied in accordance with the Agreement. Where specified limits are
shown, it is understood that they will be the minimum acceptable limits. If the Contractor's policy
contains higher limits, the Borough shall be entitled to coverage to the extent of such higher limits. As a
condition of award,certificates of insurance must be furnished to the Borough Manager.
These certificates must provide thirty(30)day prior notice to the Borough in the event of cancellation,
non-renewal or a material change in the policy. Proof of insurance is required of the following:
A. Worker's Compensation Insurance if applicable. The Contractor shall provide and maintain,
for all employees of the Contractor engaged in work under this Contract, Worker's
Compensation Insurance as required by AS23.30.045. The Contractor will be responsible for
Page 1 of 2
Page 16 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a
Worker's Compensation Insurance for any subcontractor who provides services under this
Contract. This coverage must include statutory coverage for States in which employees are
engaging in work and employer's liability protection not less than $100,000.00 per person,
$100,000.00 per occurrence.
B. Comprehensive (Commercial) General Liability Insurance with coverage limits not less than
$1,000,000.00 combined single limit per occurrence and annual aggregates where generally
applicable and will include premise operations, independent contractors, products/completed
operations, broad form property damage, blanket contractual and personal injury
endorsements. The Kodiak Island Borough shall be named as an "Additional Insured" under
all liability coverage listed above.
C. Comprehensive Automobile Liability Insurance covering all owned, hired and non-owned
vehicles and with coverage limits not less than $100,000.00 per person, $300,000.00 per
occurrence bodily injury, and$50,000.00 property damage.
The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for
furnishing all the materials and labor which may be required in the prosecution and completion of the
whole work to be done under this Agreement, and in all respects to complete said Agreement to the
satisfaction of the Borough Manager.
It is further distinctly agreed that the said Contractor shall not assign this Agreement, or any part thereof
or any right to any of the monies to be paid him hereunder, nor shall any part of the work be done or
materials fumished under this Agreement.
Payment for services rendered under this Agreement shall be made by the Kodiak Island Borough within
thirty (30) days of the completion/delivery, acceptance by the Kodiak Island Borough and invoicing by
Contractor.
IN WITNESS THEREOF,The Kodiak Island Borough Manager, by authority in him vested, has executed
this contract on behalf of the Kodiak Island Borough, and the said Contractor have hereunto set their
hands and seals,the day and year first above written.
KODIAK ISLAND BOROUGH CONTRACTOR
By By
Duane Dvorak Name:
Resource Management Officer Title:
By
Bill Roberts
Interim Borough Manager
Attest:
By
Nova M. Javier, MMC
Page 2 of 2
Page 17 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM
. .
ECEIVEDD
Duane MkR 77 2016
You asked me to provide an estimate of pAk NNIMEM likely project
involvement with the planned Twin Creek Salvage Timber Sale. You indicated that this estimate
should be divided between fiscal years with Julylst the separation period.
The information below is based upon a number of assumptions which may or may not prove
correct. And please keep in mind that I have not visited the area so I am guessing topography
and logging complexity are similar to other timber harvest operations I have been involved with
around the Chinialk area in the past. The below time frame is based upon the salvage sale being
approved by KIB in the few three weeks and operations taking about 10 months to complete.
And lastly, I have received word that the perspective timber buyer/logging operator has a good
track record and that contract administration will therefore not require significant
administrative effort to address compliance with scope of work standards. So with the above
said,please keep in mind this Is a rough estimate.
Fiscal Year 2016
® 2-4 Hrs--Meetings with KIB to develop contract Scope of Work standards
• 2-4 Hrs—Meetings with Buyer/Logging Buyer/LoggingOperator to negotiate contract agreement
• -3 Hrs--Review of Detailed Plan of Operations document before submission to Alaska
Division of Forestry
• 7-8 Hrs*--April DPO field review with State FPA group/riparian variation request
® 14-1 Hrs*—two May field inspections of contractor logging operations
• 14-16 Hrs*—two June field inspections of contractor logging operations
Fiscal Year 2017
* 14-16 Hrs*—two July field inspections of contractor logging operations
• 7-8 Hrs* each—one field inspection during months of Aug, 2016 thru Jan,2017(42-48
hours total)
• 14-1 Hrs*--two field inspections in Feb,2017 and sale close out
*Field inspection time frame includes one-hour to produce written report documentation back
at the office. Each field inspection will also have transportation and other associated costs of
approximately$650 for each trip.
Page 18 of 65
-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
IECEIVEDO
MAR 2 5 9".515
Duane
MOMPM1111 Oft
Below are cost values I have accumulated with regards to the proposed Kodiak island Borough salvage
timber harvest project.
Professional service rate:
At this time,I am still waiting to get final figures for out-of-pocket expenses of a comprehensive general
liability insurance policy. My Insurance agent advises she will have this information by Monday,March
29th. For your reference,she determined that I will not require worker's compensation Insurance since
I will not have any employees involved with this project. The insurance agent talked with an insurance
underwriter and they resolved that my current auto Insurance policy will suffice for this project.
So at this point,I can give a round figure estimate that my hourly costs will run somewhere around$60-
70 per hour.
70perhour. I will'fine tune"this cost amount once I have final insurance policy information.
I will propose that we'start the clock"(so to speak)on field inspections once I arrive at the Kodiak
airport and until return to the airport. I suggest a flat fee of$50 each way for air travel. In cases when I
might need to overnight in Kodiak,I will consider work stoppage once I get back into town. I assume
this fee will apply to conference calls as well as in-person meetings. And this fee will be considered
while producing report information and documents.
Air travel:
There are three different air carriers that travel between Kenai,Anchorage and Kodiak. This includes
Grant Aviation,Ravn and Alaska Airlines. In the case of Rava,they provide flights from Kenai to Kodiak,
but their earliest arrival time Into Kodiak is 11:07 AM. Grant Aviation has a flight out of Kenai at
5:00AM which will provide opportunity to catch either Ravn or Alaska Airlines earlier flight to Kodiak
that arrives at 7:30 AM or 8:30 AM. Unfortunately,in looking through travel dates on Grant's web site,
it appears this early flight to Anchorage Is popular and often booked In advance.
Depending on the combination of air carriers that are used,I am finding that round-trip flight costs
between Kenai and Kodiak are going run approximately$450-$530 per trip.
Other cost factors:
In the event that overnight lodging is required,it appears the winter rates for hotels/motels runs around
$110 and summer rates I am estimating are around$200 per night. I checked into car rental at Kodiak
airport and a 1 Y,day rate is$170. 1 presume that$50 per day is sufficient for meals/per diem.
Page 19 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.a.
With regards to a profewonal seMces contract wahKffi,I M111 propose that V 1pay for afir trave�and offier
costs out-ofpocket and then obtain reimbursement fnr actuM expenditures during the periodic Mhng
cyde fcw finnyservkes.
Please conU..,ict me at 907 262-9033 K you have any quesdons.
Wade W.Wahrenbrock
Page 20 of 65
A-1 Timber Consultants Presentation
AGENDA ITEM #2.c.
Kodiak Island Borough
MEMORANDUM
TO: Honorable Mayor and Assembly Members
of the Kodiak-Island Borough
THROUGH- Bill Roberts,Acting Borouagh Man
FROM: Karlelon 11orl,Finance Director
SUBJECT: FY2017 budget
DATE: March 31.2016
Attached is an updated budget. The major changes are-
]> Rent calculations have been updated for the borough building
2. The GIS position has been moved from the IT Department to the Community
Development Department. The budget for GIS related goods and services has been
moved to the Community Development Department.
1 We have updated the property tax revenues
4. We have updated some salary and benera expenditure budgets.
5. We are updating the area wide property tax will rate allocations to the General Fund,
Education Support Fund,the Debt Service Fund,and the R&R Fund.,
At this time we estimate the assessed values at:
P1
Assessed Value
Real 1,127,690,275
Personal 123,301,984
Total L 125 a.49-2 LZ 59
The Board of Equalization total taxable could be as high as$1.290,000,000 rounded.This is
based on lost minute calculations front Assessing.
This is the mill rate structure used to develop the currcrit proposed budget.,
Mott Budgeted
Real Personal Amounts
General Fund 0.14 257,877 S 17,262 5 175 139
KlBSD 8.00 91021,522 996,416 10,007,936
Debt Service 2.00 2,255,381 246,6D4 2,501,985
R&R 0.61 687,991 75,214 763,205
20-7S U 12267O� 1 M 499i 23 448,16T
.j_ j_.L�
We are proposing a mill rate of.61 mills for the R& R Fund. The R&R Fund needs the
equivalent of.2 mills to nu dce the annual loan payment to the Hospital Fund. The remaining.3
mills can be used for repair and maintenance or Borough Facilities,
Page 21 of 65
Budget Discussion
AGENDA ITEM #2.c.
We Ihave attached line hern budgets for the kne-ral Fund,dr.Education Stippon Fund,and the
Debi,service Fund, Wc have also included a pfqimed debt scrvice schcr.Me for FY 200 using
the Ilast Pr9mae infi.Ximafion from the assessin[g departmem.
2
Page 22 of 65
Budget Discussion
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Budget Discussion
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Budget Discussion
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Budget Discussion
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Budget Discussion
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Budget Discussion
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Page 61 of 65
Budget Discussion
AGENDA ITEM .C.
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Page 62 of 65
Budget Discussion
AGENDA ITEM #2.c.
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Page 63 of 65
Budget Discussion
AGENDA ITEM #2.c.
2017 Projected Debt Service Mill Rate Calculation
Payoff Gross Rate of State Net
Rand Dale rinci al Interest Bond Pmts Reimbursement Reimburs an n s Bond Pmts
2008 2028 370,000 254,960 624,960 60% 374,976 249,984
2011 2031 320,OW 302,550 622,550 70% 435,785 196,765
2012A 2025 455,000 200,300 655,300 blended 450,956 204,344
20128 2025 550,000 244,550 794,550 60% 476,730 317,820
2013 2033 790,000 899,740 1,689,740 70% 1,182,818 506,922
2014 2034 810,000 967,113 1,777,113 70% 1,243,979 533,134
2015A 2026 145,000 77,150 222,150 70% 155,505 66,645
20158 2036 195,000 296,363 491,363 70% 343,954 147,409
2016A 2025 235,000 250,411 485,411 70% 339,788 145,623
20168 2036 30,000 70,969 100,969 70% 70,678 30,291
Est 2017 2026 183,102 101,250 284,352 70% 199,046 85,306
Est 2017 2036 31,876 45,000 76,876 70% 53,813 23,063
ADEC Loan 2020 6,222 382 6,604 0% 0 6,604
4,121,2DO5 3,710,738 $ 7,831,938 5,328,029 2,503,909
Less Facility Fund Interest Contribution 150%of 85%) 0
Less interest income 0
Adjusted net bond payments $ 2,503,909
Projected Real Property Taxable Value $ 1,150,000,000
Projected Personal Property Taxable Value 140,000,000
Total Projected Taxable Property Value $ 1,290,000,000
Mill Divisor 1,000
Mill Value 1,290,000
Debt Portion of Projected Mill Rate ladjusted net pmts/adj mill value) 1.94
anmma2qns:
Estimated 2017 Unsold bonds available for sale:$3,000,000 for 20 years and 2, ,0 for 10 years
Estimated 2017 Unsold bonds are presumed sold and payments begin January 1,2017 at an interest rate of 4.5%
State reimbursement percentage for new bonds sold is 70%
State reimbursement percentage for prior band sold remain at current rates
Facility Fund interest income does not fall below 1%
Taxable real and personal property total values increase by approximately 4%over prior year
ffqnmdkmuzmllimsvr�undanc�ra>svaalrme r�rouoedua
2008A Acquisition and construction of school capital improvements including a new school pool.
2011 High school renovation and renewal project,
2012A Refunded 24 Bond for the planning,design and construction of capital improvements to
the Larsen Bay School,Kodiak Middle School and Kodiak High School.
20126 Refunded 2004B Bond for the planning,design and construction of capital improvements in
the Borough,including a new school pool and Kodiak High School Voc/Ed classroom.
2013 High school renovation and renewal project.
2014 High school renovation and renewal project.
2015A Renewal and replacement for various school buildings,
20158High school renovation and renewal project.
2016A Renewal and replacement for various school buildings.
20168 High Schaal renovation and renewal project.
Page 64 of 65
Budget Discussion
AGENDA ITEM #8.a.
FUTURE DISCUSSION ITEM SUMMARY
KIBSD Budget
Budget Meetings with the City/School District
Review$10M bonded project timeline and status
SD Mental Health Services Provided by the Counseling Center Contracts Upcoming
Fisheries Analyst(2/6/16)
Borough Budget Manger(3/9/16)
Non Profit Funding Process Discussion Animal Control(6/2016)
Town Hall Meeting to Discuss Priorities Hospital(4/2017)
Review Capital Planning(R&R)priority list&funding source Solid Waste(4/2017)
Borough Administration Oversight
Contracting and Procurement Process/Procurement Process Presentation
Review of the Salary Schedule and Overview of the Hiring Process Budget Deadlines
KIB Vacant Positions 1st Budget Review(12/15/15)
Action Plans Manager Budget(by 4/30/16)
Contract with Waste Management KIBSD Budget(by 4/30/16)
Hospital Lease Assembly Approval(by 6/10/16)
Assembly Operations
Teleconferencing Ordinance
Role of Elected Officials During an Incident Command System
Boards,Committees,and Commission Structures/efficacy
Village Presentations at Regular Meetings
Fisheries
FWG Structure and Purpose
Review Fisheries Analyst Contract
Consolidation
Consolidation of Fire Departments
Updated Friday,December 18,2015
Page 65 of 65
KODIAK ISLAND BOROUGH
WORK SESSION
Work Session of:
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KODIAK ISLAND BOROUGH
WORK SESSION
Work Session of: 31S r 11(P
Please PRINT your name Please PRINT your name