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2016-10-27 Work SessionPage 3 4-76 rr�g1� Kodiak Island Borough Assembly Work Session Thursday, October 27, 2016 Immediately Following The 6:30 p.m. Special Meeting 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. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) �T el:[111n" 9TA M, a. Budget Discussion With Senator Gary Stevens Budget Discussion - Pdf b. Review of the Alaska Municipal League Strategy Packet and Resolutions 2017 AML Leqislative Packet and Resolutions - Pdf C. Discussion Regarding The MOA For Building Inspection And A Permitting Services With The City Of Kodiak Building Code Memo 10.27.16 - Pdf 3. PACKET REVIEW PUBLIC HEARING Ordinance No. FY2017-16 Amending Sections of Kodiak Island Borough Code Title 18 Borough Real Property, Chapter 18.20 Real Property Disposal - In General To Address Certain Methods and Means of Borough Land Disposal Process. NEW BUSINESS Reorganization Of The Kodiak Island Borough Assembly And Election Of The Deputy Presiding Officer. RESOLUTIONS Resolution No. FY2017-19 Requesting The Alaska Legislature And Governor Walker To Not Impose Any More Cuts To The ADFG Budget And Particularly To The Division Of Commercial Fisheries Budget And Any Tax Revenue Generated From New Or Increased State Taxes On The Commercial Seafood Industry Be Used To Fill The Funding Gap For ADFG And Pay For Continuing Effective Management Of Alaska's Commercial Fisheries. Resolution No. FY2017-20 Authorizing The Bayside Fire Department To Submit An Application To The Assistance To Firefighters Grant (AFG) Program. Visit our website at www.facebook.com/Kodiakislandborough www kodiakak us 91 0 @KodiakBorough Page 1 of 79 OTHER ITEMS Approval of the Kodiak Island Borough Assembly 2017 Meeting Schedule. Assembly Approval Of An Assembly Candidate To The Alaska Municipal League Board of Directors District 10 Seat. 4. MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Visit our website at www.facebook.com/Kodiakislandborough@KodiakBorough www.kodiakak.us Page 2 of 79 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 27, 2016 ASSEMBLY WORK SESSION TITLE: Budget Discussion With Senator Gary Stevens ORIGINATOR: Nova Javier FISCAL IMPACT: FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: This is to discuss the State Fiscal Budget with Senator Stevens and the impacts to Kodiak. Representative Louise Stutes met with the Assembly on July 28. PURPOSE, ACTION, OR RECOMMENDED MOTION: Budget discusions. Kodiak Island Borough Page 3 of 79 Budget Discussion With Senator Gary Stevens AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH AGENDA STATEMENT ,% OCTOBER 27, 2016 ASSEMBLY WORK SESSION A- TITLE: Review of the Alaska Municipal League Strategy Packet and Resolutions ORIGINATOR: Nova Javier FISCAL IMPACT: FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: The Kodiak Island Borough is a member of the Alaska Municipal League and sends delegates to attend the annual conference each year. An important part of the Annual Local Government Conference is to discuss and approve the AML Legislative Priorities, Position Statements and adopt Resolutions on key legislative issues. The process is completed at the 66th Annual Business Meeting on Friday, November 18th at 9:00 a.m. where the membership will review and adopt the 2017 documents. Although multiple delegates are sent and could be in attendance during the annual business meeting, the Kodiak Island Borough is entitled to only one vote. In the past, the Mayor served as the voting delegate for the Borough. If he is unable to attend the business meeting, discussion is important so that the person who will be voting on behalf of the Borough knows the official position of the majority of the Assembly. The presiding officer during the work session will ask the Assembly to express any concerns to any of the items in the packet. This will be the opportunity for the members to express their thoughts. PURPOSE, ACTION, OR RECOMMENDED MOTION: Assembly to determine official position on the different information provided. Assembly to discuss who will serve as the voting delegate on behalf of the Borough during the AML annual business meeting. Kodiak Island Borough Page 4 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 5 of 79 Review of the Alaska Municipal League Strategy Packet and Re... Alaska Municipal League 66t1 Annual Local Government Conference Legislative Strategy Packet Resolution Procedures & Guidelines Draft 2017 State & Federal Priorities Draft 2017 AML Resolutions Position Statement Guidelines Draft 2017 Position Statements Resolutions Supporting Changes to Position Statements (none submitted) Page 5 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 6 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 7 of 79 Review of the Alaska Municipal League Strategy Packet and Re... ALASKA MUNICIPAL LEAGUE AML RESOLUTIONS PROCEDURE A resolution is a statement of the Alaska Municipal League's intent to support a specific action on a significant issue affecting municipalities. Resolutions are introduced, debated and adopted by the AML members each you at the Annual Local Government Conference. To be considered during the conference, resolutions most conform to the following policy, procedural and format guidelines which were adopted by the AML Board in August, 2007. Resolutions should be received in the AML office electronically, by mail, or fax no later than October 7, 2016. RESOLUTION GUIDELINES 1. Resolutions shall concern shared policy and program needs, issues, or problems ofAlaska municipalities and shall state the problem and action sought. A. Resolutions may not conflict with any adopted AML positions. B. Resolutions that allow conflict between one community against another will be eliminated. C. Resolutions will be revised to make a general application instead of one seeking to benefit a specific community only; especially if the benefit to that one community would be at the expense of another community (i.e. support relocating a state office from city to city). D. Resolutions with the same topic will be combined. 2. Resolutions shall be restricted to action -specific issues and issues of some immediacy and shall be sent to the Governor, Legislature, State Agency, President and/or the Congress. 3. Resolutions differ from priorities in that: A. Resolutions shall address specific issues rather than general policy. B. Resolutions may address regional issues as well as statewide concerns. C. Resolutions shall be in effect for only one year. They are intended to address timely issues such as current legislative proposals. HOW TO SUBMIT A RESOLUTION 1. Only councils and assemblies of member municipalities, affiliated municipal associations, affiliated regional municipal organizations (comprised of municipal officials), the AML Board and the Alaska Conference of Mayors are eligible to submit resolutions for consideration. Each resolution submitted must have been approved by a formal action of the sponsoring body. 2. Resolutions should bemailed, faxedoremailedbyOctober7,2016tobe included inthedelegate packets fin -consideration during the conference. Resolutions must follow format guidelines. Copies of the resolutions will be made available to the delegates in their registration packets. 3. Resolutions not submitted by October 7 may be offered to the Resolution Committee on November 16th at 5:00 p.m., for consideration during the conference. However, the sponsor of any resolution presented directly to the Resolution Committee most have the support of representatives of five (5) member municipalities in attendance at the conference and be in proper format In addition, if the Resolution Committee accepts the late resolution, the sponsor must make copies available for the business meeting on Friday, November 18, 2016. 4. Resolutions will be reviewed, debated and acted upon by the AML Membership at the Annual Conference Business Meeting. Sponsorsofpmperly submitted resolutions will he given an opportunity to discuss and support their resolutions at the meeting. 5. The First Vice -President shall serve as Chatrof the Resolutions Committee and shall appoint eight (8) additional elected and appointed municipal officials from the AML Board. Alaska Municipal League One Sealaska Plaza, Suite 200, Juneau, Alaska 99801 a Ps907586.1325 a R907A6354110 a www.ok.l.org Page 7 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 8 of 79 Review of the Alaska Municipal League Strategy Packet and Re... 6. The Resolutions Committee shall debate and act upon each resolution for final recommendation to the membership. The Resolutions Committee shall approve, amend, or reject each resolution submitted, note its action, and, if the resolution is approved, send it to the business meeting for consideration. If a resolution is rejected, the committee shall prepare a brief written justification of its action and forward that information to the business meeting. 7. A resolution rejected by the Resolution Committee may be brought to the floor of the business meeting at the appropriate time, only if it is signed by respresentatives from twenty (20) member municipalities. No new resolutions may be submitted to the business meeting without first going to the Resolution Committee. RESOLUTIONS FORMAT The resolution must be in the proper formal. The name of the sponsoring member municipality or association and the date of submission must be indicated on the bottom of the resolution. Each resolution must include the statement, "This resolution was approved for submission to the Alaska Municipal League membership by the governing body of (name of Municipality or association) on (date)" in the lower left-hand comes. Resolutions can be emailed to kathic a^akml ore or submitted via disk or data stick. Each resolution submitted must indicate that it is a "Resolution of the Alaska Municipal League, Resolution 92017-xx and have a title, beginning, "A Resolution ..." that describes the issue and intent of the resolution. Throughout the text, the resolution should indicate that the League is taking the position advocated, not a given municipality or organization. At least one "Whereas" clause should identify the policies in the AML Position Statement that the resolution addresses (i.e., expands or supplements), if applicable. Alaska Municipal League One Seolaska Plaza, S.R. 100, Juneau, Alaska 99801 • 8907386.1315 • FA07A63.5480 www.okml.or0 Page 8 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. ALASKA MUNICIPAL LEAGUE RESOLUTION #2017- A RESOLUTION WHEREAS, ;and WHEREAS, ;and WHEREAS, ;and WHEREAS, ;and ouhy NOW, THEREFORE BE IT RESOLVED THAT the Alaska Municipal League PASSED AND APPROVED BY THE ALASKA MUNICIPAL LEAGUE ON THE DAY OF , 2016. Signed: President, Alaska Municipal League Attest: Executive Director, Alaska Municipal League Submitted by: Date Submitted: Contact Name: Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 9 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 10 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 11 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaske Plaza, Suite 200 • Juneau, Alaska 99801 Tel(907)586-1325 • Fax(907)463-5480 • w .akml.org ALASKA MUNICIPAL LEAGUE DRAFT FY 2017 STATEWIDE PRIORITIES • LEGISLATIVE ADOPTION OF A SUSTAINABLE BUDGET PLAN The Alaska Municipal League supports a Legislative adoption of a sustainable budget plan that does not rely primarily on cuts, but on new sources of revenues. We feel that the leaders of our State must immediately adopt changes that stop the bleeding that we are currently experiencing. Despite the cuts experienced this last year by local governments, municipalities must continue to provide basic and essential services. The Alaska Municipal League stands behind their updated FY 2017 Sustainability Plan and encourages the Legislature to quickly take action. As more responsibilities are passed down to the "political subdivisions" of the state, municipalities must be given the tools to provide for themselves. ' • REVENUE SHARING (COMMUNITY ASSISTANCE) The Alaska Municipal League realizes that the State is in a fiscal crisis. We have attempted to work with the Legislature through the decrease of Revenue Sharing by half. We cannot agree to the ending of Revenue Sharing, however. As our Revenue Sharing goes down and as the State continues to cost shift to municipalities, many local governments will find themselves in the position of closing their doors. The current $30 million is a small part of the yearly state budget. With the recent loss of Timber Receipts and the potential loss of PILT, a sustainable and predictable allocation is necessary for municipal budget purposes. This money allows for the provision of basic local services and as a means to keep taxes down. • PERSTfRS The Alaska Municipal League recently fought back a proposal by the Alaska State Legislature that would have seen municipalities acquire a larger percentage of the PERS/TRS unfunded liability. The PERS/TRS system is the legal and moral responsibility of the State, as it is THEIR program. Municipalities simply pay an amount set by the State in order to be participants in the plan. We do not provide retirement benefits; we do not have a say in any of the fiduciary decisions. AML and its member municipalities will hold fast to the previously agreed upon 22% of salary towards the pay down of the unfunded liability. Member of the National League of Cities and the Natioral Association of Counties Page 11 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 12 of 79 Review of the Alaska Municipal League Strategy Packet and Re... FluOne Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel(907)586-1325 • Fax(907)463-5480 • w .akml org ALASKA MUNICIPAL LEAGUE Draft FY 2017 FEDERAL PRIORITIES • SUPPORT PILT AND SRS The Alaska Municipal League supports restoring full mandatory funding for the Payments in Lieu of Taxes (PILT) program, which compensates municipalities for tax-exempt federal land within their boundaries. The Alaska Municipal League also supports extending the Secure Rural Schools (SRS) program as a transitional funding mechanism until the federal government fully implements a sustainable long-term forest management program with adequate revenue sharing for forest counties and school. • PROTECT MUNICIPAL BONDS The Alaska Municipal League supports preserving the federal deductibility of local property and income taxes and the tax-exempt status of municipal bonds that provide critical funding for public facilities, infrastructure and development. Provisions like the tax exemption for municipal bond interest have been part of the federal tax code for over 100 years, helping finance trillions of dollars in public works projects. • PRESERVE MUNICIPAL INTERESTS IN "WATERS OF THE U.S." REGULATIONS The Alaska Municipal League believes that local streets, gutters and human -made ditches should be excluded from the definition of "Waters of the U.S.," under the federal Clean Water Act. The Alaska Municipal League calls on Congress to require the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers to withdraw the new rule and rewrite it in consultation and collaboration with state and local governments. • PROMOTE LOCAL GOVERNMENT PRIORITIES IN SURFACE TRANSPORTATION IMPLEMENTATION The Alaska Municipal League will work to ensure that the new surface transportation law is implemented to reflect municipal priorities, including allocating more funding for locally owned infrastructure, increasing local decision making authority, prioritizing investments that increase safety, as well as continuing to urge Congress to resolve the long-term solvency of the Highway Trust Fund. Member of the National League of Cities and the National Association of counties Page 12 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 13 of 79 Review of the Alaska Municipal League Strategy Packet and Re... FluOne Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w akml.org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-01 4 5 A RESOLUTION URGING THE ALASKA LEGISLATURE TO ADOPT A 6 SUSTAINABLE BUDGET PLAN FOR FYI AND BEYOND; TO CAREFULLY 7 CONCENTRATE ON INCREASED REVENUES RATHER THAN JUST CUTS; AND 8 TO GIVE SERIOUS CONSIDERATION TO THE SUSTAINABILITY PLAN 9 SUBMITTED BY THE ALASKA MUNICIPAL LEAGUE 10 I I WHEREAS, due to the continued plunge in the price of oil, coupled with the decreased 12 amount of oil flowing through the pipeline, the State of Alaska continues to find itself in a 13 huge budget deficit situation for FY18; and 14 15 WHEREAS, the Legislature alleviated some of the problem through a number of cuts to 16 government provisions and services; and 17 18 WHEREAS, the Legislature also basically cut down the capital budget to necessities only; 19 and 20 21 WHEREAS, cutting across the board alone will not solve our fiscal challenge and will only 22 serve to push our state into an economic recession; and 23 24 WHEREAS, there is no longer sufficient balances in the Constitutional Budget Reserve 25 to cover next years' projected budget deficit, which will for the first time, likely require the 26 use of the Permanent Fund Earnings Reserve to help fund state government operations; 27 and 28 29 WHEREAS, municipal Revenue Sharing has been reduced by 50%; an additional $2.5 30 billion in PERS liability costs have been shifted to municipalities; school debt 31 reimbursement has been significantly reduced; airport funding, community jails, road 32 maintenance, the capital budget, and infrastructure support has been reduced or 33 eliminated; and it appears that other cost shifts are on the horizon; and 34 35 WHEREAS, Alaska's local governments have also lost Secure Funding for Rural Schools 36 (Timber Receipts) and might yet be faced with the depletion of federal Payment in Lieu 37 of Taxes funding (PILT); and 38 39 WHEREAS, In February of 2015, the President of AML created an ad hoc committee to 40 address this issue from the perspective of local government; and 41 Member of the National League of cities and the National Association of counties Page 13 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 14 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I WHEREAS, this committee is cognizant of the fact that municipalities must have a 2 sustainable commitment from the Legislature in order for municipalities to remain 3 sustainable; and 4 5 WHEREAS, despite a fiscal challenge, municipalities must continue to provide basic and 6 essential services; and 7 8 WHEREAS, with these fads in mind, and taking into consideration what happened last 9 session, the Sustainability Committee has revisited their Sustainability Plan from the 10 perspective of Alaska's local governments; and 11 12 WHEREAS, AML believes that the leaders of our state should immediately adopt changes 13 in the manner with which the State of Alaska raises revenues, while continuing to watch 14 for situations of obvious government waste or redundancy; and 15 16 WHEREAS, AML believes that the lack of new state revenues, as part of a balanced fiscal 17 plan, will force additional state budget cuts to programs such as the municipal school debt 18 reimbursement program, PERS/TRS state on -behalf payments for municipalities, state 19 funding for the BSA education formula, as well as other current state functions that will 20 "roll downhill," becoming the responsibility of municipal governments to fund; and 21 22 WHEREAS, at the same time, Alaska's local governments realize that the state and 23 federal government will no longer be able to fund local government as in the past; and 24 25 WHEREAS, as more responsibilities are passed down to the subdivisions of the state 26 during this fiscal challenge, local governments must be given the "tools" to make this work 27 as well as possible. 28 29 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League urges the 30 Alaska Legislature to adopt a sustainable budget plan for FY18 and beyond; to carefully 31 concentrate on increased revenues rather than just cuts; and to give serious 32 consideration to the Sustainability Plan submitted by the Alaska Municipal League. AML 33 also calls upon every member municipality to actively engage with the Legislature and 34 the Administration during the Legislative process throughout the entire session of the 30v 35 Alaska State Legislature 36 37 PASSED AND APPROVED by the Alaska Municipal League on this 18' day of 38 November, 2016. 39 40 41 Signed: 42 Clay Walker, President, Alaska Municipal League Page 14 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 15 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 3 October 12, 2016 I 2 3 4 Attest: 5 Kathie Wasserman, Executive Director, Alaska Municipal League 6 7 8 9 to II Submitted by: AML Board of Directors Date Submitted: 09/16 Contact Name: Kathie Wasserman Contact Phone #: 586-1325 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: 12 13 14 Page 15 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 16 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 17 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 vnwi.akml.org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-02 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE OPPOSING A STATE 6 SALES TAX 7 8 WHEREAS, the Alaska Municipal League recognizes the State of Alaska is in a severe 9 financial crisis and long-term solutions must be found; and 10 I I WHEREAS, there is a need for reduced spending and increased revenue by the State of 12 Alaska; and 13 14 WHEREAS, one proposal calls for a state sales tax; and 15 16 WHEREAS, the Governor had previously submitted legislation that, if adopted, would 17 have created a state sales tax; and 18 19 WHEREAS, the majority of Alaskan municipalities rely primarily on a sales tax (110 out 20 of 164); and 21 22 WHEREAS, an additional state sales tax would be an enormous burden upon the people 23 of Alaska, especially those in rural communities; and 24 25 WHEREAS, an additional state sales tax would inhibitthe ability of Alaska's municipalities 26 to raise needed revenue for local services; and 27 28 WHEREAS, there appear to be other revenue proposals that the State of Alaska could 29 adopt that would have less negative impact on municipalities and the people of Alaska. 30 31 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League opposes the 32 creation of a state sales and use tax. 33 34 PASSED AND APPROVED by the Alaska Municipal League on this 18'^ day of 35 November, 2016. 36 37 38 39 Signed: 40 Clay Walker, President, Alaska Municipal League 41 42 Member of the National League of Cities and the National Association of Counties Page 17 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 18 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I 2 Attest: 3 Kathie Wasserman, Executive Director, Alaska Municipal League 4 5 6 7 8 9 10 11 12 Submitted by: Cit} of Bethel Date Submitted: 08/16 Contact Name: Mayor Rick Robb Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 18 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 19 of 79 Review of the Alaska Municipal League Strategy Packet and Re... e .Z10One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 akml.org 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-03 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING PUBLIC 6 EMPLOYEES RETIREMENT SYSTEM REFORM 7 8 WHEREAS, most of Alaska's municipalities contribute to the Public Employee Retirement 9 System (PERS); and 10 I I WHEREAS, included in SB 125 in 2008, was language requiring municipalities to pay for 12 a termination study and ensuring costs upon the termination of a "department, group or 13 classification" of employees; and 14 15 WHEREAS, also included in SB 125, was language requiring municipalities to pay a 16 penalty when and if their salary base went below the 2008 salary base; and 17 18 WHEREAS, termination study costs must be paid to the state actuarial company plus the 19 past service cost for those positions for the next 30 years; and 20 21 WHEREAS, if the municipal total base salary falls below what it was in 2008, charges will 22 be assessed on that drop; and 23 24 WHEREAS, in light of the financial situation, municipalities will most likely have to lay off 25 more people than usual; resulting in higher costs; and 26 27 WHEREAS, the State of Alaska will also be facing more layoffs than usual and the state 28 has exempted themselves from these costs; and 29 30 WHEREAS, these rules severely limit the ability of municipalities from being agile with 31 regards to their workforce and tends to prohibit wise financial choices; and 32 33 WHEREAS, these rules also severely limit municipalities from creating new needed 34 departments, groups or classifications for fear of future termination study costs; and 35 36 WHEREAS, municipalities require agility and adaptability in the workforce to meet our 37 changing needs; and 38 39 WHEREAS, with our current state fiscal crisis, municipalities may need to make 40 reductions or increases in the workforce, including entire departments, groups or 41 classifications of employees; and 42 Memberof the National League of Cities and the National Association of Counties Page 19 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 20 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports 2 reform in the Public Employees Retirement System (PERS). These reforms might include 3 eliminating termination studies or requiring the State to also pay termination study costs 4 for reducing or eliminating departments, groups or classifications of employees. 5 6 PASSED AND APPROVED by the Alaska Municipal League on this 18th day of 7 November, 2016. 8 9 10 II Signed: 12 Clay Walker, President, Alaska Municipal League 13 14 15 16 Attest: 17 Kathie Wasserman, Executive Director, Alaska Municipal League 18 19 20 21 22 23 24 25 26 Submitted by: City of Bethel Date Submitted: 08/16 Contact Name: Mayor Rick Robb Contact Phone # Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 20 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2. b. Page 21 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 www.akml.org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-04 4 5 A RESOLUTION SUPPORTING LEGISLATION ADOPTING REAL PROPERTY 6 SALES DISCLOSURE IN ALASKA 7 8 WHEREAS, the Alaska Association of Assessing Officers (AAAO) overall goal is to 9 promote the fair and equitable distribution of the property tax burden which funds local 10 governments; and 11 12 WHEREAS, the goals of AAAO include education of government officials and the public 13 on the assessment process and the importance of achieving fair and equitable values of 14 real property within all taxing jurisdictions in the State of Alaska; and 15 16 WHEREAS, as Assessor is required, per AS 29.45.110, to assess all property at full and 17 true value as of January 1 of the assessment year. The full and true value is the estimated 18 price that the property would bring in an open market and underthe then prevailing market 19 conditions in a sale between a willing seller and a willing buyer both conversant with the 20 property and with prevailing general price levels; and 21 22 WHEREAS, while the legal mandate for assessment at full and true value exists, the sales 23 data that is necessary to determine full and true value is not readily available due to the 24 lack of sales disclosure in the State of Alaska; and 25 26 WHEREAS, the Legislative Research Services Division reported in 2014 that Alaska is 27 one of six states for which sales disclosure for property exchanges are not disclosed; and 28 29 WHEREAS, sales disclosure would assist in the fair distribution of the tax burden to all 30 taxpayers and would enhance the accuracy and the timeliness of assessments; and 31 32 WHEREAS, sales disclosure would enhance the ability of assessment professionals to 33 meet the full and true value mandate and would also aid the public in obtaining information 34 in order to interact within local real estate markets; and 35 36 WHEREAS, the lack of sales data in some jurisdictions limits the ability to fairly distribute 37 the tax burden and also to fund local services; and 38 39 WHEREAS, sales disclosure would enable property owners to gather data to provide 40 support for legally entitled property tax appeal under Alaska Statute 29.45.190. 41 Member of the National League of Cities and the National Association of Counties Page 21 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 22 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League urges the 2 Alaska State Legislature to enact legislation requiring disclosure of all real property sales 3 in the State of Alaska. 4 5 PASSED AND APPROVED by the Alaska Municipal League on this 18'" day of 6 November, 2016. 7 8 9 10 Signed: 11 Clay Walker, President, Alaska Municipal League 12 13 14 15 Attest 16 Kathie Wasserman, Executive Director, Alaska Municipal League 17 18 19 20 21 22 23 24 25 Submitted by: Alaska Association of Assessing Officers 26 27 Date Submitted: 08/16 28 Contact Name: Marty McGee Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 22 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 23 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www,akmlorg 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-05 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE STRONGLY 6 ENCOURAGING AN AMENDMENT TO AS 39.35.625 TO ELIMINATE 7 DISCRIMINTORY IMPACTS ON SMALLER COMMUNITIES AND TO STOP THE 8 SHIFT OF STATE EMPLOYEES PAST SERVICE COSTS TO OTHER EMPLOYERS 9 10 WHEREAS, the Alaska State Legislature, in adopting SB 125 in 2008, adopted a Flat rate 11 of 22% of salary to be paid by all of Alaska's PERS employers to help fund current costs 12 and the unfunded liability of the PERS system; and 13 14 WHEREAS, the Legislature, in crafting SB 125, struggled to come up with a fair and 15 equitable solution to a problem that most of them did not create. Further, in crafting SB 16 125, legislators never envisioned, intended, nor did they want to create any inequitable 17 financial damage to any PERS member employer, nor negatively interfere with the current 18 or future delivery of any member's services or programs because of SB 125; and 19 20 WHEREAS, the Legislature adopted AS 39.35.625 to ensure that employers participating 21 in PERS as of 2008 continued to pay their fair share of the unfunded liability which existed 22 as of that date. This statute set a salary floor for payments at the 2008 salary level, and 23 required continued payments for eliminated positions where the employer terminated 24 participation of a department, group, or other classification of employees in PERS after 25 2008. The obligation to make payments for eliminated positions has not been applied to 26 the State as an employer; and 27 28 WHEREAS, the Alaska Department of Administration adopted regulations, including 2 29 AAC 35.235 in order to implement this statute: 30 2 AAC 35.235 — Calculation of termination costs states: 31 "(a) An employer that proposes to terminate coverage of a department, group, or 32 other classification of employees under AS 39.35.615 or 39.35.957, or terminate 33 participation of the employer under AS 39.35.620 or 39.35.958, must have a 34 termination study completed by the plan actuary to determine the actuarial cost to 35 the employer for future benefits due employees whose coverage is terminated;" 36 and 37 "(b) In addition to the costs calculated in (a) ..... the employer under AS 39.35.620 38 or 39.35.958, is required to pay to the plan until the past service liability of the plan 39 is extinguished, an amount calculated by applying the current past service rate 40 adopted by the ARM Board, to salaries of the terminated employees as required 41 by AS 39.35.625 (a). This payment shall be made each payroll period or the 42 employer may enter into a payment plan acceptable to the administration for each Member of the National League of Cities and the National Association of Counties Page 23 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 24 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 fiscal year. The obligation under this section to conduct a termination study and 2 make payments for eliminated positions has not been applied to the State as an 3 employer; and 4 5 WHEREAS, the State of Alaska has reduced its workforce by 6.4% (1,700 employees) in 6 the past 2 fiscal years and is likely to further reduce its workforce. When those reductions 7 are made without the State as an employer being responsible for the lost contributions to 8 the past service cost rate represented by those positions in the same manner as other 9 PERS employers, the effect is to shift a portion of the State's liability as an employer to 10 other employers;tand Il 12 WHEREAS, equitable and consistent application of the State's termination law does not 13 seem to be occurring, nor likely can it ever occur given the uniqueness of all PERS 14 employers' positions. A law like this that has such a material financial impact on PERS 15 employers should at a minimum be able to be fairly, equitably, and consistently applied 16 to all PERS employers, yet the Division of Retirement and Benefits has taken the position 17 that the State, with half of the PERS salary base, is exempt from termination studies and 18 their financial impacts; and 19 20 WHEREAS, there is an inescapably inequitable impact to small PERS employers. This 21 State law, or its application by the Department of Administration, creates a clear and 22 unconscionable inequitable impact on small PERS employers, versus larger PERS 23 employers. A large employer with 20 employees in a classification such as police officer, 24 may eliminate 10 positions with no liability, while a community with one police officer 25 incurs liability if they eliminate the one position, despite the more significant loss to the 26 PERS system from the layoffs in the larger community. Many smaller communities only 27 have "one" employee for a program or service. If the community loses a grant, or is simply 28 faced with budget constraints and has to eliminate a position, for example a public works 29 director or animal protection officer, the employer would be required to have a termination 30 study done, then pay all of the related costs because a "group" was cut; and 31 32 WHEREAS, the application of this regulation does not take into account shifts in municipal 33 services which may move employees and salary amounts from one area to another. In 34 other words, the ability for entities to adjust their programs and services to meet their 35 constituent's needs is negatively impacted. If an employer needs to cut in Area A, and 36 add in Area B, that employer could find itself paying the Past Service Cost (PSC) rate 37 times the salary(s) it is no longer paying in Area A because it shifted its employees to 38 Area B where there is more need, whether driven by local need or a mandate; and 16.4% of the State's FY2014 employer contributions to the past service unfunded liability amounts to over $6 million. Removing these contributions from the unfunded liability payments increases the overall liability, Increases the share of that liability to be reported as a debt of other participating employers, increases the risk of future shortfalls, and could cause further delays in paying off the unfunded liability. Page 24 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 25 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 3 October 12, 2016 1 2 WHEREAS, the Alaska Municipal League believes that the Legislature did not intend that 3 simple changes in the mix of municipal services and shifting employee duties would 4 trigger a significant employer liability for past service cost payments; and 5 6 WHEREAS, over time, more and more resources may go toward paying for positions that 7 no longer exist, than go to the delivery of services such as fire protection, law 8 enforcement, teaching, recreational services, landfill services, and the list goes on from 9 here. Once an employer starts shifting employee resources from one area of 10 responsibility to another, it starts a negative downward spiraling in the ability to fund other I I programs and services; and 12 13 WHEREAS, an employer generally will pay more toward the unfunded obligation every 14 pay period on positions that no longer exist than they will for existing paid positions. This 15 is true because the rate set by statute is capped at 22%. The 22% first covers the current 16 normal cost rate and the difference is applied to the unfunded obligation. The Past 17 Service Rate is not capped and is equal to the portion of the 22% which is paid towards 18 the past service liability plus the amount over 22% which is paid by the State as on -behalf 19 payments; and 20 21 WHEREAS, termination studies nullify the intent of SB 125, that employers pay the exact 22 same rate. It is dear that one result of these termination studies is that different 23 employers will in fact be paying different net rates and therefore, there will not be a single 24 uniform contribution rate for PERS employers. The adoption of SB 125 was based on the 25 acknowledgement that the State does not have a single -agent, multiple employer PERS 26 system, but rather a consolidated un -equitable cost share system. The intent of SB 125 27 was that all employers would pay the same exact rate. That cannot happen when each 28 employer pays a different termination cost amount or pays none at all. 29 30 WHEREAS, if a PERS employer reduces its employees count because it made a decision 31 to alter or suspend one of its programs or services, per 2 AAC 35.235, PERS will send 32 the employer three bills. The first bill will be for the cost of doing a termination study. The 33 second bill will be what the study says is owed the system due to the employee changes 34 made. The third bill, the biggest one, requires the employer to pay the PSC rate on each 35 position's salary that PERS determines has been removed from PERS by voluntary 36 request of the employer or should be removed from PERS (whether voluntarily or 37 involuntarily in response to direction from PERS) due to the change in staffing. The 38 employer will be required to pay the PSC on the salary(s) of the positions (s) PERS 39 determines has been removed (as indicated), until the unfunded obligation is paid off, 40 perhaps 23 years from now. These three bills cumulatively can run from hundreds of 41 thousands of dollars to several millions of dollars; and 42 Page 25 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 26 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 4 October 12, 2016 1 WHEREAS, the future financial stability of PERS employers, and their ability to efficiently 2 and effectively manage the delivery of their programs and services is being directly 3 impacted and undermined by this application of AS 39.35.625 and 2 AAC 35.235; and 4 5 WHEREAS, the negative consequences, the additional charges and the payments that 6 result from the termination language, were never contemplated, or intended by the 7 legislature and are destructive; and 8 9 WHEREAS, the Alaska Municipal League requests that AS 39.35.625, which requires 10 termination studies and past service liability payments for positions whose participation I I in PERS is terminated, and any other similar statutes or regulations, should be either 12 repealed or modified to apply to all employers, including the State, and to apply in a non - 13 discriminatory manner to reductions in the employer's work force. 14 15 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League strongly 16 encourages an amendment be made to AS 39.35.625 to eliminate discriminatory impacts 17 on smaller communities and treat all PERS employers, including the State, the some by 18 applying the past service cost burdens in a non-discriminatory manner to reductions in 19 the employer's workforce. 20 21 PASSED AND APPROVED by the Alaska Municipal League on this 18' day of 22 November, 2016. 23 24 25 26 Signed: 27 Clay Walker, President, Alaska Municipal League 28 29 30 31 Attest 32 Kathie Wasserman, Executive Director, Alaska Municipal League 33 34 35 36 37 38 39 40 Page 26 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 27 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 5 October 12, 2016 Submitted by: Ketchikan Gateway Borough Date Submitted: 09/16 2 3 Contact Name: Scott Brandt -Erichsen Contact Phone #: 4 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 27 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 28 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 29 of 79 Review of the Alaska Municipal League Strategy Packet and Re... FlurILIUM One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel(907)586-1325 • Fax (g07) 463-5480 • vrxw.akml.org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-06 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE OPPOSING ANY 6 LEGISLATION WHICH WOULD INCREASE THE BURDEN ON PERS AND TRS 7 EMPLOYERS BEYOND THE CURREN EMPLOYER CONTRIBUTION LIMITS OF 8 22% FOR PERS AND 12.56% FOR TRS 9 10 WHEREAS, the State of Alaska established the Public Employee Retirement System 11 (PERS) in 1961 and since that time has: 12 1. Had sole administrative control of the plan; and 13 2. Selected, contracted with and has been the sole contact with PERS actuaries; 14 and 15 3. Had sole access to oversight for, and responsibility for actuarial methods and 16 assumptions for PERS; and 17 4. Had sole control over the investment of all PERS assets; and 18 5. Set the rates for, billed for, and collected on all PERS contributions, and 19 20 WHEREAS, the State caused the shifting of employees from cities to boroughs as it 21 formed mandatory boroughs in 1963 and 1964; and 22 23 WHEREAS, the State has managed the investment income since 1969 and has credited 24 investment income to employee accounts solely from the current employer's active 25 account, versus directly; and 26 27 WHEREAS, the State administratively created the Retirement Reserve Account (RRA) in 28 1971, although it was not authorized by statute until 1974; and 29 30 WHEREAS, the State began paying retiree benefits with "blended" employer dollars in 31 1971 and absorbed the RRA shortfall balance in 1972; and 32 33 WHEREAS, although member employers were told, and believed, from 1961 until 34 approximately 2006, that individual employer retirement accounts and activity were kept 35 and tracked separately by the State since 1971, the State has blended, reallocated and 36 comingled employer contributions such that no single employer's contributions can be 37 accounted for accurately; and 38 39 WHEREAS, the comingled nature of the funds creates a statewide system such that one 40 employer's actions affect other employer's liabilities; and 41 42 WHEREAS, the State did not administer PERS in accordance with its own laws; and Member of the National League of Cities and the National Association of Counties Page 29 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 30 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I 2 WHEREAS, the State established the "shared consolidated (blended) normal cost" rate 3 in 1977; and 4 5 WHEREAS, the State started allocating income to the RRA in 1984; and 6 7 WHEREAS, in 1994, the State stopped transferring employer contributions to the RRA 8 as employees retired; and 9 10 WHEREAS, the State controlled the timing of employee "appointment" to retirement and 1 I the subsequent employee account transfers to the RRA; and 12 13 WHEREAS, the State reallocated each employers' and employees' RRA contributed 14 assets, based upon RRA liabilities; and 15 16 WHEREAS, the State determined each employers' unfunded obligation after reallocating 17 the employer's assets; and 18 19 WHEREAS, the State, prior to 2006, set the employer's past service cost rates, based 20 upon reallocated asset results; and 21 22 WHEREAS, the State, before 2006, set and paid prior normal cost rates that were lower 23 than they should have been; and 24 25 WHEREAS, the State, from July 1, 1999 up until as recently as 2006, paid refunds from 26 employee accounts, yet booked payments as though they were coming from the RRA; 27 and 28 29 WHEREAS, the State, from July 1, 1999 up until as recently as 2006, sent direct 30 employee accounts, yet booked payments as though they were coming from the RRA; 31 and 32 33 WHEREAS, the State has pervasive authority over public education in Alaska, a 34 responsibility which it shares with no other unit of govemment; and 35 36 WHEREAS, in the exercise of its pervasive authority over public education, the State 37 established a Teachers Retirement System (TRS) and statutorily requires that all 38 teachers in public schools be included in that system; and 39 40 WHEREAS, the State has prescribed the terms of the TRS system and program since 41 the beginning and has exercised exclusive control over the operation, investment and 42 administration of that system in much the same manner as it has the PERS system; and Page 30 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2. b. Page 31 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 3 October 12, 2016 1 2 WHEREAS, the State does not allow any local school district the discretion to decline to 3 have teachers employed in those districts participate in TRS; and 4 5 WHEREAS, the State has, as with PERS, comingled each district's contributions to TRS 6 and set rates at inadequate levels such that there is no method to accurately allocate the 7 unfunded liability for TRS pension or health benefits to any particular school district; and 8 9 WHEREAS, in recognition of the State's responsibility for the majority of the unfunded 10 pension and health benefit liability, in 2008 the State amended its statutes regarding 11 employer contributions to PERS and TRS, placing a cap on employer contributions to 12 PERS at 22% of payroll and on TRS contributions at 12.56% of payroll, with the State 13 accepting responsibility for any costs in excess of this amount. This action substantially 14 reduced the reported individual liability of many communities, and increased the allocation 15 of liability to others. The reallocation of responsibility was acquiesced in by PERS 16 employers and the State in recognition that it was in the best interests of all to settle the 17 allocation of liability and provide certainty of set rates for all employers; and 18 19 WHEREAS, in connection with the 2008 legislative change, the Legislature 20 acknowledged State responsibility for the unfunded liability in the TRS system and 21 accepted responsibility, subject to annual appropriation, for payments required to satisfy 22 the TRS and PERS contribution rates required to amortize the unfunded pension liability 23 over 25 years; and 24 25 WHEREAS, during the 2016 regular legislative session, the second Regular Session of 26 the 29"' Legislature, bills were introduced which would have increased the employer 27 contribution rates for PERS and TRS employers from the rates set in 2008 in accordance 28 with the resolution of the problem the State had in accurately allocating liability to 29 individual employers; and 30 31 WHEREAS, the Alaska Municipal League believes that apart from being unfair, any 32 increase from the employer contribution rates sets in 2008 would risk unraveling the 33 resolution of the liability allocation reached in 2008, and could motivate PERS employers 34 to seek to enforce their rights to limit their individual employer liability. Such action would 35 likely cost the State and all employers more in the long run due to the overwhelming costs 36 of sorting out individual employer responsibilities. 37 38 NOW, THEREFORE BE IT RESOLVED that he Alaska Municipal League opposes any 39 legislation which would increase the burden on PERS and TRS employers beyond the 40 current employer contribution limits of 22% for PERS and 12.56% for TRS. 41 Page 31 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 32 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 4 October 12, 2016 1 PASSED AND APPROVED by the Alaska Municipal League on this 18' day of 2 November, 2016. 3 4 5 6 Signed: 7 Clay Walker, President, Alaska Municipal League 8 9 10 11 Attest 12 Kathie Wasserman, Executive Director, Alaska Municipal League 13 14 15 16 17 18 19 20 21 Submitted by: Ketchikan Gateway Borough Date Submitted: 09/16 22 23 Contact Name: Scott Brandt -Erichsen Contact Phone #: 24 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 32 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 33 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 11 Tel (907) 586-1325 • Fax (907) 463-5480 • w akmlorg 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-07 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING ISSUANCE 6 OF PENSION OBLIGATION BONDS (POBS) AND OPPOSING ANY LEGISLATION 7 WHICH WOULD INCREASE THE BURDEN ON EMPLOYERS OR DIMINISH THE 8 STATE RESPONSIBILITY FOR ON -BEHALF PAYMENTS OF THE PERS AND TRS 9 UNFUNDED LIABILITY AS A RESULT OF THE ISSUANCE OF PENSION 10 OBLIGATION BONDS 11 12 WHEREAS, in 2008, the Alaska Legislature authorized the issuance of Pension 13 Obligation Bonds (POBs) to fund a portion of the unfunded liability of the Public Employee 14 Retirement System (PERS) and the Teachers Retirement System (TRS); and 15 16 WHEREAS, the State has not yet issued POBs due in part to the available investment 17 climate, but recently the market has been very favorable for issuance of these bonds; and IS 19 WHEREAS, the State is contemplating issuing about $960 million in POBs for TRS and 20 $1 billion or so for PERS (the amount will be tied to the current projected payments of on - 21 behalf funds). The objective of the issue of POBs is to smooth the State's payments of 22 on -behalf pension liability over time, and to gain from the approximately 4.5% gap 23 between bond costs and the plan -applied investment return rate charged; and 24 25 WHEREAS, the POB proceeds are projected to make the TRS program 90% funded and 26 to substantially increase the funding ration of the PERS program; and 27 28 WHEREAS, increases in the PERS and TRS funding rations reduce the risk of increased 29 actuarially required rates to fund the retirement systems and reduce the pressure to shift 30 expenses to municipal employers through increases in employer contribution rates; and 31 32 WHEREAS, the Alaska Municipal League opposes any increase in employer contribution 33 rates to PERS and TRS; and 34 35 WHEREAS, the Governor is not proposing changing the 22% and 12.56% limits on 36 employer contribution rates as a result of the issuance of POBs; and 37 38 WHEREAS, while there is discussion among some legislators about increasing employer 39 contribution rates, there is no legislation currently pending to change employer 40 contribution rates; and 41 Member of the National League of cities and the National Association of counties Page 33 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 34 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 WHEREAS, the financial incentive for the Legislature to increase employer contribution 2 rates as a method of reducing State expenditures is decreased through the use of POBs 3 because POBs are funded separately by bond payments which, while subject to 4 appropriation, must be paid to maintain a favorable State bond rating, and employer 5 contributions will not be a funding source for bond payments. 6 7 NOW, THEREFOR BE IT RESOLVED that the Alaska Municipal League recognizes the 8 potential for Pension Obligation Bonds (POBs) to provide savings to the State, supports 9 the use of POBs to provide a budget savings and bring more stability to payments of the 10 unfunded liability and strongly opposes any increase in the employer contribution limits 11 or reduction in the State's responsibility to make on behalf payments as a result of 12 issuance of POBs. 13 14 PASSED AND APPROVED by the Alaska Municipal League on this 18'^ day of 15 November, 2016. 16 17 18 19 Signed: 20 Clay Walker, President, Alaska Municipal League 21 22 23 24 Attest: 25 Kathie Wasserman, Executive Director, Alaska Municipal League 26 27 28 29 Submitted by: Ketchikan Gateway Borough Date Submitted: 09/16 30 31 Contact Name: Scott Brandt -Erichsen Contact Phone #: 32 33 Implementation Recommendation: 34 Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 34 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 35 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99601 Tel (907) 585-1325 • Fax (907) 463-5480 • w .akml.org 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-08 4 5 A RESOLUTION SUPPORTING PROVISIONS FOR ENHANCED LOCAL CONTROL 6 IN THE ISSUANCE OF ALCOHOL BEVERAGE LICENSES AND PERMITS WITHIN 7 FIRST CLASS AND HOME RULE MUNICIPALITIES 8 9 WHEREAS, the Alaska Municipal League position statement on Local Control is that"... 10 it is imperative that, unless prohibited by law, municipalities closest to the electorate be I I able to provide their constituents with the laws, services, benefits, and taxation that the 12 local populations, through their local elected officials, feel is appropriate."; and 13 14 WHEREAS, Article X of the Alaska State Constitution references the intent of "maximum 15 local self-government"; and 16 17 WHEREAS, the issuance of alcohol beverage licenses and permits within organized 18 municipalities in the state is regulated by Title 4 of the Alaska State Statutes; and 19 20 WHEREAS, under Alaska Statutes Title 4, local municipalities are provided the 21 opportunity to object to the issuance or renewal of alcoholic beverage licenses and 22 permits within their jurisdiction, but otherwise have no authority in the issuance, number 23 or type of licenses or permits; and 24 25 WHEREAS, the recently implemented marijuana regulations provide for "maximum local 26 self-government" by giving local municipalities the authority to determine whether to allow 27 marijuana establishments within its border, and if allowed, the number and types of 28 establishments to be permitted; and 29 30 WHEREAS, the same level of local control is not afforded to municipalities when it comes 31 to regulating alcoholic beverage licenses and permits under Alaska Statutes Title 4; and 32 33 WHEREAS, local control is the preferred method of regulating, controlling and managing 34 socially affected economic issues; and 35 36 WHEREAS, first class and home rule municipalities which have effective law 37 enforcement, land use controls, and health facilities are well-suited to determine the 38 number and types of alcoholic beverage industries within their borders, and the affects 39 and impacts thereof; and 40 41 WHEREAS, providing a mechanism for first Gass and home rule municipalities to 42 participate in determining the appropriate number and types of alcoholic beverage Member of the National League of Cities and the National Association of Counties Page 35 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 36 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 licenses and permits within their community, will provide for more effective regulation of 2 licenses and permits across our vast and diverse state; and 3 4 5 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports 6 amendments to Title 4 of the Alaska State Statutes which would provide for maximum 7 local self-government to include establishing a mechanism for first class and home rule 8 municipalities to participate in determining the appropriate number and types of alcoholic 9 beverage licenses and permits in their communities, especially in those municipalities 10 with local law enforcement, land use controls and sufficient health and human services II resources. 12 13 PASSED AND APPROVED by the Alaska Municipal League on the 18t" day of 14 November, 2016. 15 16 Signed: 17 Clay Walker, President, Alaska Municipal League 18 19 20 Attest: 21 Kathie Wasserman, Executive Director, Alaska Municipal League 22 23 24 Submitted by: City of Soldotna Date Submitted: 09/16 25 26 Contact Name: Mark Dixson Contact Phone#: 27 28 Implementation Recommendation 29 30 Agencies to Contact: 31 32 Funding Required: 33 34 Staff/Board/Membership Action: 35 36 37 38 39 40 41 This resolution was approved for submission to the Alaska Municipal League membership 42 by the Soldotna City Council on September 28, 2016. Page 36 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2. b. Page 37 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • v .akml.org 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-09 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING AN 6 AMENDMENT TO ALASKA STATUTE TO CHANGE THE FIRE SPRINKLER 7 EXEMPTION FROM A MANDATORY EXEMPTION TO AN OPTIONAL EXEMPTION 8 9 WHEREAS, Alaska Statute 29.45.030(1) requires municipalities to provide a property tax 10 exemption of 2% of the assessed value of a structure that has a fire protection system 11 installed, such as sprinklers; and 12 13 WHEREAS, the value of this property tax exemption in 2015 was $815,637; and 14 15 WHEREAS, building codes in many of the larger municipalities require fire sprinkler 16 systems in many buildings; and 17 18 WHEREAS, relocating the fire sprinkler exemption from AS 29.45.030 - Required 19 Exemptions to AS 29.45.050 — Optional Exemptions and Exclusions, allows other 20 municipalities without fire sprinkler requirements in code to offer the exemption as an 21 incentive for safe building practices; and 22 23 WHEREAS, elimination of the mandatory fire sprinkler tax exemption was suggested by 24 the Municipality of Anchorage Budget Advisory Commission. 25 26 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports 27 changing the fire sprinkler statute from a mandatory exemption to an optional exemption. 28 29 PASSED AND APPROVED by the Alaska Municipal League on this 181h day of 30 November, 2016. 31 32 33 34 Signed: 35 Clay Walker, President, Alaska Municipal League 36 37 38 39 Attest: 40 Kathie Wasserman, Executive Director, Alaska Municipal League 41 42 Member of the National League of cities and the National Association of Counties Page 37 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 38 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 Submitted by: Municipality of Anchorage Date Submitted: 09/16 2 3 Contact Name: Rose Foley Contact Phone #: 4 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 38 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 39 of 79 Review of the Alaska Municipal League Strategy Packet and Re... ®� One Sealaska Plaza. Suite 200 • Juneau, Alaska 99001 Tel (907) 580-1325 • Fax (907) 403-5400 • w vakml.org 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-10 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING INCLUSION 6 OF THE PORT OF ANCHORAGE ON A STATEWIDE GENERAL OBLIGATION 7 BOND IN 2018 8 9 WHEREAS, the Port of Anchorage (Port) is Alaska's premier cargo import terminal, 10 handling approximately four million tons of food, building materials, cars, clothing, 11 cement, fuel and other commodities every year, that Alaskans need to live, work and 12 thrive in our state; and 13 14 WHEREAS, the Port is the transport hub that efficiently moves fuel and goods to some 15 200 communities throughout Alaska, military bases and other destinations across the 16 state; and 17 18 WHEREAS, the Port is an economic driver in Alaska, where almost half of the cargo 19 crossing its docks is bound for destina0ons outside of Anchorage, from Homer to Prudhoe 20 Bay, and is a critical piece of national defense infrastructure that helps keep the United 21 States strong; and 22 23 WHEREAS, the port originally opened shortly after statehood in 1961 and is now suffering 24 from corrosion and age and is unlikely to survive another significant earthquake; and 25 26 WHEREAS, the Municipality of Anchorage spends as much as $5 million annually to 27 maintain operational capacity of existing structures, but this does little to enhance the 28 facility's operational efficiency and nothing to assure earthquake survivability; and 29 30 WHEREAS, a Port modernization project will update facilities to improve operational 31 safety and efficiency and accommodate modem shipping operations, as well as improve 32 resiliency to enable facilities to survive earthquakes and Cook Inlet's harsh marine 33 environment for at least 75 years; and 34 35 WHEREAS, there is no practical or affordable alternative to modernizing the Port because 36 the infrastructure cannot be economically duplicated elsewhere due to the current 37 infrastructure's preponderance of private sector investment value, intermodal 38 transportation system connections, proximity of Alaska population centers; and tsunami 39 protection from upper Cook Inlet geography; and 40 41 WHEREAS, the Port modernization project is expected to cost $550 million. The 42 Municipality of Anchorage is asking State officials to include funding for the Port in a Member of the National League of Cites and the National Association of Counties Page 39 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 40 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 statewide obligation bond referendum on the November 2018 ballot to replace the main 2 cargo terminals; and 3 4 WHEREAS, the alternative to State funding would be paid for by shippers through 5 increased cargo tariffs that will be ultimately passed on to State residents through added 6 cost to every gallon of milk, tank of gasoline and every other commodity shipped through 7 the Port. 8 9 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports 10 inclusion of the Anchorage Port modernization project on a statewide general obligation I I bond referendum on the November 2018 ballot. 12 13 PASSED AND APPROVED by the Alaska Municipal League on the 18'" day of 14 November, 2016. 15 16 17 18 Signed: 19 Clay Walker, President, Alaska Municipal League 20 21 22 23 Attest: 24 Kathie Wasserman, Executive Director, Alaska Municipal League 25 26 27 28 29 30 Submitted by: Municipality of Anchorage Date Submitted: 09/16 31 32 Contact Name: Rose Foley Contact Phone #: 33 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 40 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 41 of 79 Review of the Alaska Municipal League Strategy Packet and Re... 1811146 One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w .akml org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-11 4 5 A RESOLUTION IN SUPPORT OF FULL FUNDING FOR THE STATE OF ALASKA 6 MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY 2018 STATE 7 CAPITAL BUDGET. 8 9 WHEREAS, the Alaska Municipal League recognizes the majority of the public boat 10 harbors in Alaska where constructed by the State during the 1960s and 1970s; and 11 12 WHEREAS, these harbor facilities represent critical transportation links and are the 13 transportation hubs for waterfront commerce and economic development in Alaskan 14 coastal communities; and 15 16 WHEREAS, these harbor facilities are ports of refuge and areas for protection for 17 ocean-going vessels and fishermen throughout the State of Alaska, especially in coastal 18 Alaskan communities; and 19 20 WHEREAS, the State of Alaska over the past nearly 30 years has transferred 21 ownership of most of these State owned harbors, many of which were at or near the 22 end of their service life at the time of transfer, to local municipalities; and 23 24 WHEREAS, the municipalities took over this important responsibility even though they 25 knew that these same harbor facilities were in poor condition at the time of transfer due 26 to the state's failure to keep up with deferred maintenance; and 27 28 WHEREAS, consequently, when local municipal harbormasters formulated their annual 29 harbor facility budgets, they inherited a major financial burden that their local municipal 30 governments could not afford; and 31 32 WHEREAS, in response to this financial burden, the Governor and the Alaska 33 Legislature passed legislation in 2006, supported by the Alaska Association of 34 Harbormasters and Part Administrators, to create the Municipal Harbor Facility Grant 35 program, AS 29.60.800; and 36 37 WHEREAS, the Alaska Municipal League is pleased with the Department of 38 Transportation and Public Facilities administrative process to review, score and rank 39 applicants to the Municipal Harbor Facility Grant Program, since state funds may be 40 limited; and 41 Member of the National League of Cities and the National Association of Counties Page 41 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 42 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I WHEREAS, for each harbor facility grant application, these municipalities have 2 committed to invest 100% of the design and permitting costs and 50% of the 3 construction cost; and 4 5 WHEREAS, the municipalities of the City of Kake, the City of Ketchikan, the City and 6 Borough of Sitka, the Municipality of Skagway, the City of Valdez, and the City and 7 Borough of Wrangell have offered to contribute $18,160,055 in local match funding for 8 FY18 towards seven harbor projects of significant importance locally as required in the 9 Harbor Facility Grant Program; and 10 1 I WHEREAS, completion of these harbor facility projects is all dependent on the 50% 12 match from the State of Alaska's Municipal Harbor Facility Grant Program; and 13 14 WHEREAS, during the last ten years the Municipal Harbor Facility Grant Program has 15 only been fully funded twice; and 16 17 WHEREAS, during the last ten years the backlog of projects necessary to repair and 18 replace these former State owned harbors has increased to over $100,000,000. 19 20 NOW, THEREFORE BE IT RESOLVED THAT the Alaska Municipal League urges full 21 funding in the amount of $18,160,055 by the Governor and the Alaska Legislature for 22 the State of Alaska's Municipal Harbor Facility Grant Program in the FY18 State Capital 23 Budget in order to ensure enhanced safety and economic prosperity among Alaskan 24 coastal communities. 25 26 PASSED AND APPROVED by the Alaska Municipal League on this 18� day of 27 November, 2016. 28 29 30 31 Signed: 32 Clay Walker, President, Alaska Municipal League 33 34 35 36 Attest: 37 Kathie Wasserman, Executive Director, Alaska Municipal League Page 42 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 43 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 3 October 12, 2016 I '- Submitted by: Alaska Association of Harbormasters & Port 3 Administrators A Date Submitted: 09/16 Contact Name: Carl Uchytil Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 43 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 44 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 45 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w .akml org I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-12 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE IN SUPPORT OF THE 6 ADDITION OF PORT AND HARBOR EMPLOYEES TO THE LIST OF EMPLOYEES 7 COVERED BY AS 12.55.135. 8 9 WHEREAS, State of Alaska statute AS 12.55.135 Sentences of Imprisonment for 10 Misdemeanors establishes minimum terms of imprisonment for defendants convicted of I I assaulting or harassing uniformed or otherwise clearly identified peace officers, fire 12 righters, correctional employees, emergency medical technicians, paramedics, 13 ambulance attendants or other emergency responders or medical professionals; and 14 15 WHEREAS, port and harbor employees in communities throughout the State of Alaska 16 routinely perform enforcement and emergency response duties commensurate with 17 those performed by peace officers, fire fighters, correctional employees, emergency 18 medical technicians, paramedics, ambulance attendants or other emergency 19 responders or medical professionals; and 20 21 WHEREAS, defendants convicted of assaulting or harassing port and harbor 22 employees in several recent cases have received sentences well below the minimums 23 established in AS 12.55.135 for defendants convicted of assaulting or harassing 24 uniformed or otherwise clearly identified peace officers, fire fighters, correctional 25 employees, emergency medical technicians, paramedics, ambulance attendants or 26 other emergency responders or medical professionals; and 27 28 WHEREAS, the Alaska Municipal League desires to strengthen the deterrent to 29 unlawfully assault or harass port and harbor employees throughout the State of Alaska. 30 31 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports the 32 addition of port and harbor employees to the list of employees covered by State of 33 Alaska statute AS 12.55.135 Sentences of Imprisonment for Misdemeanors, which 34 establishes minimum terms of imprisonment for defendants convicted of assaulting or 35 harassing uniformed or otherwise clearly identified peace officers, fire fighters, 36 correctional employees, emergency medical technicians, paramedics, ambulance 37 attendants or other emergency responders or medical professionals. 38 39 PASSED AND APPROVED by the Alaska Municipal League on this 181h day of 40 November, 2016 41 42 Member of the National League of Cities and the National Association of Counties Page 45 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 46 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I 2 Signed: 3 Clay Walker, President, Alaska Municipal League 4 5 6 7 Attest: 8 Kathie Wasserman, Executive Director, Alaska Municipal League 9 10 11 12 13 14 15 16 17 Submitted by: Alaska Association of Harbor Masters & Pon Administrators Date Submitted: 09/16 Contact Name: Carl Uchyail Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: Page 46 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 47 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 www.akml_erg I ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION# 2017-13 4 5 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE IN SUPPORT OF 6 PROPOSED CHANGES TO ALASKA STATUTES CHAPTER 30.30 AND 05.25 7 IMPROVING THE MANAGEMENT AND PREVENTION OF DERELICT VESSELS. 8 9 WHEREAS, hundreds of derelict vessels currently litter Alaska's coastline and harbors 10 and these numbers will increase every year unless action is taken to address aging I I Fleets and changing commercial fisheries; and 12 13 WHEREAS, in the past year alone there have been numerous derelict vessel situations 14 that have cost the state, municipalities, and the federal government considerable 15 expense, including two ex -Navy tugs in Adak, abandoned barges in Steamboat Slough 16 near Bethel, and the tug Challenger that sunk off Juneau; and 17 18 WHEREAS, the Alaska Municipal League recognizes the widespread costs and the 19 environmental and navigational risks for both municipalities and the state associated 20 with derelict vessels; and 21 22 WHEREAS, neighboring states have dramatically strengthened their derelict vessel 23 prevention laws in the past five years to better prevent, track and manage derelict 24 vessels, including raising fees to support state management of derelict vessels and 25 requiring vessel insurance; and 26 27 WHEREAS, in 1990 the Alaska legislature passed a resolution acknowledging the need 28 to better understand and address the existing and growing problem of derelict vessels 29 around the state; and 30 31 WHEREAS, the State of Alaska has outdated statutes regarding derelict vessels which 32 lack the ability to track vessel owners, agency enforcement authority, statewide 33 coordination of response, funding or vessel insurance requirements; and 34 35 WHEREAS, in 2013 the Alaska Clean Harbors program convened an ad-hoc derelict 36 vessel task force at the urging of the Alaska Association of Harbormasters and Port 37 Administrators which includes representatives from state and federal agencies as well 38 as the Alaska Association of Harbormasters and Port Administrators, regional tribal 39 representatives, federal and state legislative offices, and private industry; and 40 Member of the National League of Cities and the National Association of Counties Page 47 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 48 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 1 WHEREAS, over nine full-day meetings, the task force developed thoughtful, robust 2 and meaningful proposed changes that will help all stakeholders around the state, 3 including harbor facilities, better address and prevent derelict vessels; and 4 5 WHEREAS, these changes will protect municipal harbor infrastructure, keep valuable 6 moorage space in harbors available, and will prevent unsustainable economic, 7 environmental and navigational hazards; and 8 9 WHEREAS, the proposed changes will improve communication and coordination 10 between Alaska's harbors and state and federal agencies, directly leading to decreased 11 costs associated with managing derelict vessels. 12 13 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League fully supports 14 the passage by the state legislature of all proposed revisions in Alaska Statutes 30.30 15 and 05.25. 16 17 PASSED AND APPROVED by the Alaska Municipal League on this 18th day of 18 November, 2016. 19 20 21 22 23 Signed: 24 Clay Walker, President, Alaska Municipal League 25 26 27 28 Attest: 29 Kathie Wasserman, Executive Director, Alaska Municipal League 30 31 32 33 Page 48 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 49 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 3 October 12, 2016 1 2 3 4 5 6 Submitted by: Alaska Association of Harbor Masters & Port Administrators Date Submitted: 09/16 Contact Name: Carl Ucbytil Contact Phone #: Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membembip Action: Page 49 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 50 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2. b. Page 51 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 wvnv.akml_org 1 ALASKA MUNICIPAL LEAGUE 2 3 RESOLUTION #2017-14 4 5 A RESOLUTION IN SUPPORT OF THE STATE OF ALASKA ADOPTING THE 6 FOLLOWING FINE PRINT NOTE TO THE 2017 NATIONAL ELECTRICAL CODE 7 ARTICLE 555.3: "FPN: The 30mA requirement can be applied to all feeder circuits 8 or all branch circuits in lieu of the main overcurrent protection device." 9 10 WHEREAS, the 2017 Edition of the National Electrical Cade, Article 555.3 requires I I 30mA ground fault protection at the overcurrent devices feeding a marina, boatyard, 12 commercial and noncommercial docking facilities; and 13 14 WHEREAS, the Alaska Municipal League acknowledges the real world reality that many 15 boats may have small amounts of ground current that are well below the trip level of 16 30mA (0.030 amps) , however, when added together at the main circuit breaker may 17 exceed the 30mA code requirement and thus shut down the entire harbor electrical 18 system; and 19 20 WHEREAS, the Alaska Municipal League recognizes that it is necessary to detect 21 electrical ground current at its source and therefore to disconnect power at the source of 22 the problem instead of disconnecting power to the entire harbor and in doing so creating 23 other safety and operation problems. 24 25 NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League fully supports 26 the passage by the state legislature of the adoption of the following find print note to the 27 2017 National Electrical Cade Article 555.3: "FPN: The 30mA requirement can be 28 applied to all feeder circuits or all branch circuits in lieu of the main overcurrent 29 protection device.". 30 31 PASSED AND APPROVED by the Alaska Municipal League on this 181h day of 32 November, 2016. 33 34 35 36 Signed: 37 Clay Walker, President, Alaska Municipal League 38 39 40 41 Attest: 42 Kathie Wasserman, Executive Director, Alaska Municipal League Member of the National League of Cities and the National Association of Counties Page 51 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 52 of 79 Review of the Alaska Municipal League Strategy Packet and Re... • Page 2 October 12, 2016 I 2 3 Submitted bv: Alaska Association of Harbor Masters & Port 4 Administrators 5 Date Submitted: 09/16 6 Contact Name: Carl Uchylil 7 Contact Phone 4: 8 Implementation Recommendation: 9 10 Agencies to Contact: 11 Funding Required: Staff/Board/Membership Action: Page 52 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 53 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (9(17) 586-1325 • Fax (907) 463-5480 • www.akml.org Position Committee Guidelines The AML Position Statement was developed by an AML standing committee composed of the AML President and appointed or elected officials from member municipalities who have expertise in one or more of the following subject areas: • Economic Development • Education • Energy • Finance/Taxation • Public Safely • Resource Management • Transportation Other committee members include: • One At -Large member • AML Executive Director • Sitting board President In order to assure that the position statements remain true to the goal of reflecting the will of our members and the League's philosophy and mission, changes to the position statements will be considered by both the committee and the membership only If endorsed by resolution of a members governing body. Changes begin during the AML Summer Conference in August. A copy of the current AML Position Statement was sent to all member municipalities for review. Changes considered during the AML Summer Conference are included In the DRAFT 2017 Position Statement. The DRAFT 2017 Position Statement is sent to all member municipalities prior to the AML Annual Business meeting in November. For changes to be considered, resolutions supporting the change must be received in the AML office electronically, by mall or fax, no later than October 7, 2016. Resolutions for changes to this document will not be accepted after this date. The Position Committee shall debate and act upon each resolution for final recommendations to the membership during the Position Committee meeting on November 16, 2016. If the Position Committee does not accept the submitted resolution, the governing body may bring It to the floor at the Luncheon General Session an November 17, 2016 for discussion. Those resolutions accepted by the Position Committee shall also be discussed during the Luncheon General Session on November 17, 2016 for Incorporation Into the Position Statement. The amended Position Statement shall be voted on by the full membership at the AML Business Meeting to be held on the morning of November 18, 2016. Note: These resolutions are "separate" from the Action Resolutions that AML adopts to further a specific "issue" during the Legislative or Congressional session. Member of the National League of Cities and the National Association of Counties Page 53 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 54 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 55 of 79 Review of the Alaska Municipal League Strategy Packet and Re... DRAFT 2017 Position Statements One Scalaska Plaza, Suite 200 .Juneau, Alaska 99801 (907) 586-1325 Fax(907)463-5480 aue.akml.ore Kathie R'asserman, Executive Director kathicnakml.org Page 55 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 56 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 57 of 79 Review of the Alaska Municipal League Strategy Packet and Re... Alaska Municipal League Position Statements: LocalControl........................................................................................Page 1 Revenue Sharing..................................................................................Page 2 PERS/TRS Unfunded Liability.................................................................Page 3 FiscalPolicy.........................................................................................Page 4 Education.............................................................................................Page 5 Energy.................................................................................................Page 6 Transportation.......................................................................................Page 7 Fishing.................................................................................................Page 8 PublicSafety .........................................................................................Page 9 Economic Development........................................................................Page 10 Minerals..............................................................................................Page 11 CleanWater.........................................................................................Page 12 Page 57 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 58 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 59 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • vrv.w.akml.org Local Control Article X of the Alaska State Constitution makes mention, throughout, of "maximum local self-government..." The Alaska Supreme Court has used this section to make close calls in favor of municipalities in many court proceedings. While Title 29 lays out the laws underwhich a municipal government must operate, liberal construction is given to municipalities under the State Constitution. Due to the large geographical land mass of Alaska; due to the different cultures that are in place in the many large areas of Alaska; due to the differing array of climates and environment experienced by each area of Alaska; and due to the differing infrastructure, facilities and services provided within each area, it is common knowledge that most "one size fits all" legislation that might attempt to envelop the entire State does not usually work well in Alaska. Therefore, it is imperative that, unless prohibited by law, municipalities closest to the electorate be able to provide their constituents with the laws, services, benefits, and taxation that the local populations, through their local elected officials, feel is appropriate. The Alaska Municipal League has always based their positions upon two guiding principles: Does it allow for maximum local control, and/or does it create an unfunded mandate. Member of the National League of Cities and the National Association of Counties Papa 1 Page 59 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 60 of 79 Review of the Alaska Municipal League Strategy Packet and Re... MOWOne Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w akml.org Revenue Sharing The State's Constitution entrusts state government with managing the state's resources to the maximum benefit of all Alaskans. The Constitution also promotes maximum self -governance at the local level. It is therefore incumbent upon the Governor and Legislature to manage and distribute the wealth of Alaska's resources to local governments each and every year. Predictable, dependable, and direct Revenue Sharing is therefore required for the State to meet its Constitutional obligations. To that end, the State should designate a specific long-term funding source that would perpetually sustain the Municipal Revenue Sharing Program. Member of the National League of Cities and the National Association of Counties Page 2 Page 60 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 61 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w akml.org PERSlrRS Unfunded Liability Management of Alaska's public retirement system has always been the responsibility of State government. Participating municipalities have had no choice but to rely on information provided by the State when making decisions regarding their own contributions to the system. Decades of improper accounting and inaccurate actuarial data provided by the State to municipalities, has now created a huge unfunded pension liability that can no longer be accurately apportioned among all participating employers. The League recognizes that there is municipal responsibility to participate in solving this fiscal problem. However, as the primary responsible party and the only entity with the long-term resources to effectively deal with the magnitude of the issue, the State should incorporate into its long-term fiscal planning strategy a leading position that ensures this ongoing obligation is met, while maintaining close coordination with participating employers to avoid the potential of shifting too great a burden to local governments. The Alaska Municipal League strongly supports reforms that would allow flexibility with regards to the management of the local government workforce (i.e., termination study costs, below -the -floor penalties). Member of the National League of Cities and the National Association of Counties Pape 3 Page 61 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 62 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 a w akml.org Fiscal Policy It is critical for the State to establish long-term financial policy as opposed to short-term reactive approaches that primarily focus on annual revenue/expenditure fluctuations or fiscal austerity. Accumulation of reserves during good years should continue as part of that policy, however draws from reserves during lean years should be more process driven and not as subject to political bartering. When necessary, State budget cuts in one department's program area must be coordinated with complimentary programs in other departments. The same needs to occur between State and local municipal programs. To do otherwise will sacrifice critical service delivery and the health of the economy statewide. The League calls upon the Governor to provide Cabinet level leadership during budget formulation to balance these interrelated effects. At the legislative level the League asks that the Director of Management and Budget works closely with the Director of the Legislative Finance Division to assure that programs remain balanced during the Legislature's budget deliberations. The Legislature must also ensure that State initiatives always include the necessary State resources required for implementation. Unfunded mandates to local governments are tantamount to unilaterally usurping critical local income and priorities. State funding reductions to municipalities, when necessary, should occur over a number of years to provide those municipalities with the reaction time to make adjustments. New revenue sources, if considered, must always consider impacts to existing local government revenue sources first. Local municipal sources already in place must always take primacy over new State revenue schemes. Member of the National League of Cities and the National Association of Counties Page 4 Page 62 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 63 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • t .akml.org Education Funding of Public School Districts: The Alaska Constitution provides that the State shall "establish and maintain a system of public schools." The State established school districts to be the basic unit for the administration of schools. The funding of these school districts is complex and segmented with Federal, State, and local sources. Additionally, State and Federal categorical funds are available to meet special circumstances, which adds to the complexity. " Sudden alterations in funding and dramatic shifts in funding levels cause havoc as the districts try to implement programs. Thus, stability of funding is required for the adequate management of school districts. Funding levels will change; but predictable,hp ased increases (or reductions if necessary) are essential. " Additionally, billions of State and local dollars have been expended on educational infrastructure, sudden reductions in funding inevitably rause the deferral in maintenance of this massive investment. Such deferral of maintenance increases the eventual price tag when minor maintenance issues become critical failures. Local Control: One of the League's guiding principles is local control. AML recognizes that ultimate control of education rests with the State Legislature by constitutional dictate; but also recognizes that every educational mandate by the Legislature can impact other important locally developed programs. Every School District is unique with widely different populations, cultures, lifestyles, educational backgrounds, and expectations. AML therefore challenges the Legislature to maximize local control over education and to provide flexibility for local circumstance wherever possible. Evaluation of School Performance: Evaluation of schools is a process of assessing and reporting a set of key indicators, such as student standardized test results, proficiency rates, graduation rates, drop-out rates, etc. This evaluation process should provide the community with the data on how well the students and district are performing, and to provide the school district with the benchmarks for programmatic improvement. The goal is to continuously improve local educational programs. Almost every new Administration brings a new performance or accountability program, with a different twist, tool, or plan requiring school district action or adaptation. Each alteration has the potential of interfering with the longitudinal evaluation data stream. Thus it is essential that each change be tailored to avoid that disruption. In Alaska, the evaluation process needs to be local, positive, and focused on continually enhancing the local educational performance. Education Programs for Workforce Development: The primary task for Alaska's University System and the vocational technical centers in Alaska is to prepare Alaskans with the skills needed by Alaskan industries and employers. There are, of course, other tasks performed by these educational institutions, but preparing the populace to meet the economic and workforce needs in Alaska needs to be kept as the principal priority. Member of the National League of Cities and the National Association of Counties Papa 5 Page 63 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 64 of 79 Review of the Alaska Municipal League Strategy Packet and Re... FluOne Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w w.akml.org Energy Energy Policy. Alaska's economy depends heavily on increasingly expensive gasoline and diesel fuel for heating, transportation, and electric power. Energy costs in rural areas are generally significantly higher, but vary widely depending on transportation costs, seasonal usage peaks, nearby petroleum development infrastructure, and many other factors. Wind and hydroelectric power are abundant and underdeveloped. Processing and distribution facilities to use some of the oil and gas produced in Alaska are virtually non-existent. There are extensive gas reserves, but no current way to get it to the lower 48 or other markets. Production, transportation, storage, and distribution systems to take advantage of these resources in Alaska must be developed immediately. Alaska's current oil and gas energy policy is complicated and to some extent, driven by the industry and national polifical decisions which are outside Alaskan's control. Support, other than financial, should be provided to encourage new exploration and development of oil and gas resources. Alaska policy needs to emphasize the production, distribution, use and sale of our oil and gas resources to benefit all Alaskans. Alaska's energy policy therefore requires a thorough review with emphasis on the needs of Alaska residents. Permitting and future development of energy resources need to emphasize "Alaska First." Processing facilities and distribution for Alaskans must be a very high priority. Other opportunities, although expensive, abound for the use of alternative energy from the sun, water, wind, and tidal surges. The technology to build and operate facilities utilizing some of Alaska's natural resources to provide biomass for heat and fuel also needs more emphasis. Revenues from a new natural gas pipeline must be made available for local communities and rural residents to draw upon for energy related grants or for low interest rate loans to help diversify sources and reduce energy costs. Energy Planning. Alaska is one of the most energy rich states in the union, yet the cost of energy throughout the State is far above the national average. Most local governments have identified the cost of energy as a primary detrimental influence affecting quality of life and economic expansion within their communities. As the State moves forward with plans to develop a North Slope LNG pipeline to tidewater, it is critical that strategic planning be started immediately at the State level to identify local energy needs statewide, and to develop a comprehensive plan to use either the natural gas itself, or the revenue from the sale of natural gas, to mitigate the high cost of energy throughout the State. This planning must occur in time to influence the design of any LNG pipeline and/or associated processing/shipping facilities, as to maximize the ability of those facilities to meet the strategic energy needs of the State. Member of the National League of Cities and the National Association of Counties Pape e Page 64 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 65 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w .akml.org Transportation Transportation infrastructure in Alaska includes much more than roads. When we say transportation we mean surface, air, trail, rail and water. All of these modes work together to move people, goods and services throughout our great state. Transportation investment has been studied and proven to be a critical economic driver over and over again. Alaska's transportation infrastructure is pivotal to the state's economy and facilitates access to markets, supplies, and most of all, resources. Improving and investing in Alaska's transportation system will enhance the global competitiveness of Alaska business and economic opportunities for its people. Alaska needs new transportation infrastructure development to provide access to resources, reduce barriers for communities to participate in the economy, allow for safe and efficient transportation for all Alaskans, and to dramatically improve Alaskan's quality of life statewide. It is equally important to ensure the maintenance of our existing infrastructure. Historically, the federal government has been funding 85%-90% of Alaska's transportation infrastructure budget. The Federal Highway Trust Fund is experiencing significant shortfalls, contributing to a decrease in federal funds for Alaska, which is not likely to rebound. The League therefore supports a State Transportation Fund with predictable funding that will provide continuity between Administrations and be applicable to all our modes of transportation. Member of the National League of Cities and the National Association of Counties Pape 7 Page 65 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 66 of 79 Review of the Alaska Municipal League Strategy Packet and Re... i One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel(907)586-1325 . Fax(907)463-5480 • w .akmlmrg Fishing Alaska has over 34,000 miles of coastline on three different seas: Arctic Ocean, Pacific Ocean, and the Bering Sea. Over half of the nation's commercially harvested fish, crab and shrimp come from Alaska, nearly four times more than the next largest seafood producing state. A rich variety of other species, such as sea cucumbers, abalone, sea urchins, herring, etc. also come from Alaskan waters and provides unique export markets. More than eight of Alaska's ports consistently rate in the top 30 U.S. ports in terms of volume or value of seafood delivered. Seafood has been and remains one of Alaska's top export commodities. The vast fishery resources of Alaska are of significant importance to the economies of the state and the nation. Local benefits from these resources are not uniformly spread throughout Alaska, but heavily concentrated in communities along the coast of Alaska. The economies of many Alaskan coastal communities are largely dependent on the fishing industry. Throughout most of the state, there is also a subsistence and recreational need and lifestyle associated with fish resources. These are critically important sectors of our culture and economy that must also be considered in any resource management plan for the industry. Revenues to local communities from fishing vary considerably and are dependent on a number of factors including the overall health and strength of various fisheries, quota allocations, changing management schemes, as well as the locafion of processors and the public and private docks or ports to which the catches are delivered. As state funding declines many of the coastal communities face major challenges to maintain community services provided, in part, to the large seasonal influx of fisherman. It will therefore be almost impossible to maintain these current ports and harbor facilities without some other sources of revenue, including consideration of recreational demand on these facilities. As the fishing industry adjusts to change, the state needs to review its current laws and regulations regarding the collection and distribution of revenues from fishery resources and ensure they are equitably allocated to Alaska's fishing communities. Member of the National League of Cities and the National Association of Counties Peas a Page 66 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 67 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 588-1325 • Fax (907) 483-5480 • w akml.org Public Safety The State provides needed public safety services to areas not covered by local law enforcement agencies (per AS 44.41.020) and assistance to municipal police departments with the enforcement of criminal laws (AS 18.65.090). It is also critical for the State to maintain all necessary training for Village Public Safety Officers (VPSOs) as they provide essential public safety services to communities that otherwise would not have law enforcement. Municipalities often depend on the State, which has the responsibility for search and rescue operations (AS 18.60.120), to conduct search and rescues within their municipalities. The State provides a criminal justice information system that is utilized by State and local law enforcement agencies (AS 44.41.020(b)) and is vital to municipal law enforcement, as it provides information unavailable through any other sources. Further, the State Crime Lab provides basic forensic services to law enforcement agencies free of charge. State and local law enforcement rely on these services for aiding in the investigation and prosecution of crimes and in solving other non -criminal cases. The State has implemented and maintains an interoperable communication system that is used by an increasing number of public safety personnel in the state. This system allows for an increased range of operation and the ability to communicate with other local and state agencies. As long as the cost of these systems continues to be bome by the State, municipalities will continue to find them to be very useful tools. The State operates the Public Safety Academy which trains many law enforcement officers and provides consistency with public safety services statewide. The training for municipal police officers at the academy is generally funded, upon request through the Alaska Police Standards Council (APSC). APSC is also responsible for setting the standards for police officers and for certifying police officers. Some municipalities operate contract holding facilities for in -custody persons. These municipalities rely on funding from the State to operate these facilities. In lieu of this, the Department of Corrections or law enforcement would be required to transport prisoners at an increase in both time and state expense. Emergency Medical Technician certifications and Paramedic licensing (required by AS 18.08.84 and 12 AAC 40.300-390 respectively) represent essential life safety functions of the state that must be continued. The required Division of Forestry training for response to wild land fires is also critically important to ensure the protection of all state lands and threatened nearby infrastructure. Funding for this program should be maintained. Member of the National League of Cities and the National Association of Counties Pape 9 Page 67 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 68 of 79 Review of the Alaska Municipal League Strategy Packet and Re... FlUMMOne Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • v .akml.org Economic Development Economic development permeates all AML position statements. Effective communication between the Governor, the Legislature, and local governments is critical to the success of any strategic long range state or local economic development strategy. Even though government cannot affect all the factors important to economic development, it can have a significant impact through both its traditional role as a public service provider and regulator, and its entrepreneurial role as a dealmaker and business recruiter. Of these two roles, the former is essential — government must provide quality basic services and an efficient regulatory environment if it wishes to create economic development Providing further incentives to businesses are optional; whether it makes sense depends on what government can reasonably offer, the extent to which such offerings are necessary to attract or retain firms, and that the cost of such offerings can be fully funded by the State be entirely a local option. Public policy can affect factors that are important to businesses, primarily through regulations, taxes, and incentives. It is therefore incumbent upon the Governor and Legislature to maintain a long-term commitment to Alaska's future by considering local stability and growth, as well as local community plans to develop and implement a comprehensive State vision for economic growth and diversification. Such a vision then needs to guide all future State policy and budgetary decisions. Member of the National League of Cities and the National Association of Counties Pape 10 Page 68 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 69 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w .akml.org Minerals Alaska's size and complex geology provide immense opportunity for a wide variety of minerals to occur, including coal, gold, copper, silver, molybdenum, zinc, and rare earth minerals. Before statehood, the mineral industry made up about 30% of the economy as compared to about 5% today. Vast untapped mineral reserves still exist. Some of the disadvantages in Alaska are the distances from markets, lack of road systems to move the material, and in some cases, the lack of technology to develop and process the mineral. All these factors raise the cost of production and make it harder for the industry to compete with other parts of the U.S. and the world. Alaska enjoys a unique position in that there are vast untapped minerals for the future. These minerals are available to be developed when needed. Such development should occur while incorporating the best environmental practices to protect the environment Bonds need to be required to protect the resources and people in case of default. AML supports and encourages research efforts, whether public or private, into new and improved methods to overcome Alaska's disadvantages, to negate potential adverse impacts, and to improve mineral recovery. Special emphasis should be aimed at improving discharge quality from mine operations and to reduce the risk of dam failures. The Governor and Legislature need to be active advocates in the responsible development of our mineral resources. Member of the National League of Cities and the National Association of Counties Pepe 11 Page 69 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 70 of 79 Review of the Alaska Municipal League Strategy Packet and Re... One Sealaska Plaza, Suite 200 • Juneau, Alaska 99601 Tel (907) 566-1325 • Fax (907) 463-5460 • w .akml.org Clean Water Alaska's abundance of rivers, lakes, wetlands, snowrields, and glaciers comprise an estimated 40% of the Nation's surface water. There are more than 12,000 rivers in Alaska, and three of those rivers, the Yukon, the Kuskokwim, and the Copper, are among the ten largest rivers in the United States. Alaska has more than 3 million lakes ranging from pond size to 1,000 square miles. Despite Alaska's wealth of water, its water resources are not uniformly distributed geographically or seasonally. Water is highly important to Alaskans, not only for domestic use, but also for the fishing and tourism industries. Alaska needs to assure that policies are in place to protect the quality of its waters, while not inhibiting responsible development, and that those policies are reviewed and updated periodically to assure they include the most up to date and proven science, and are applicable to the unique characteristics of our state. Alaska also needs to take an active role in the trans -boundary protection of rivers and streams. Treaties with Canada on the protection of rivers need to be reviewed to assure they include new technologies and practices. All types of development need to account for the costs of putting the best mitigation practices in effect. Member of the National League of Cities and the National Association of Counties Page 12 Page 70 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 71 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 72 of 79 Review of the Alaska Municipal League Strategy Packet and Re... KODIAK ISLAND BOROUGH AGENDA STATEMENT NOVEMBER 16 ASSEMBLY REGULAR MEETING `— TITLE: Resolution No. FY2017-19 Requesting The Alaska Legislature And Governor Walker To Not Impose Any More Cuts To The ADFG Budget And Particularly To The Division Of Commercial Fisheries Budget And Any Tax Revenue Generated From New Or Increased State Taxes On The Commercial Seafood Industry Be Used To FIII The Funding Gap For ADFG And Pay For Continuing Effective Management Of Alaska's Commercial Fisheries. ORIGINATOR: Nova Javier FISCAL IMPACT: FUNDS AVAILABLE: Account Number. Amount Budgeted: SUMMARY STATEMENT: Sponsors: Assembly members Skinner and Crow This resolution was discussed by the Kodiak Fisheries Work Group. It was also mentioned during the Assembly work session of October 13 and was discussed jointly by the Kodiak Island Borough Assembly and the City of Kodiak Council on October 19. This resolution requests the Alaska Legislature and Governor Walker to not impose any more cuts to the ADFG budget and particularly to the Division of Commercial Fisheries budget and any tax revenue generated from new or increased state taxes on the commercial seafood industry be used to fill the funding gap for ADFG and pay for continuing effective management of Alaska's commercial fisheries. This is going to be submitted to the Alaska Municipal League for its consideration. • It will be offered to the Resolution Committee on Wednesday, November 16 at 5 p.m. • It requires support of representatives of five (5) member municipalities • If the Resolution committee accepts the resolution, copies need to be made available for the AML business meeting on Friday, November 18 • It will be reviewed, debated, and acted upon by the AML membership. • The Borough who is the sponsor will be given an opportunity to discuss and support the resolution at the meeting. PURPOSE, ACTION, OR RECOMMENDED MOTION: Move to adopt Resolution No. FY2017-19. Kodiak Island Borough Page 72 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 73 of 79 Review of the Alaska Municipal League Strategy Packet and Re... 1 lrinxl Nby: MBAssembly 2 Re,Iuesled by. KIB Assembly Members Crux and skinner 3 Droned by Assembly Member 616mer 4 Inlmducetl on: t IM=016 5 Adopled on, 6 KODIAK ISLAND BOROUGH 7 RESOLUTION NO. FY 2017-19 e 9 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH REQUESTING THE ALASKA LEGISLATURE AND 31 GOVERNOR WALKER TO NOT IMPOSE ANY MORE CUTS TO THE 12 ADFG BUDGET AND PARTICULARLY TO THE DIVISION OF 13 COMMERCIAL FISHERIES BUDGET AND ANY TAX REVENUE 14 GENERATED FROM NEW OR INCREASED STATE TAXES ON THE 15 COMMERCIAL SEAFOOD INDUSTRY BE USED TO FILL THE FUNDING 16 GAP FOR ADFG AND PAY FOR CONTINUING EFFECTIVE 17 MANAGEMENT OF ALASKA'S COMMERCIAL FISHERIES 16 WHEREAS, subsistence, sport and commercial harvests of Alaska's fish and game 19 resources are vital to the social, cultural, and economic health of the State of Alaska; and 20 WHEREAS, the Alaska seafood industry is the second largest contributor to Alaska 21 economy; and 22 WHEREAS, the Alaska seafood industry direc0y provides over 60,000 direct jobs and 23 thousands more Indirectly, making it the largest private -sector employer in the state; and 24 WHEREAS, Alaska's commercial seafood Industry pays over $250M annually in taxes and 25 fees which exceeds current Slate commercial fisheries management spending; and 26 WHEREAS, Alaska's seafood industry pays business and landing taxes that directly 27 benefit over 65 communities and boroughs In Alaska and reduces community dependence 29 on State funds; and 29 WHEREAS, the seafood Industry relies on strong State commercial fishery research and 30 management programs in order to provide that economic benefit; and 31 WHEREAS, the Commercial Fisheries Division budget has been reduced by more than 32 20% in the past 2 years, from $50M to $40M which Includes offsets from CFEC funding, and 33 the unrestricted general fund has been reduced by 30%; and 34 WHEREAS, the Alaska Department of Fish and Game (ADFG) is preparing for additional 35 budget cuts of 10-14% in FYI which could result in another $5.7M reduction to the Division 36 of Commercial Fisheries; and 37 WHEREAS, when the Division of Commercial Fisheries budget is reduced, the seafood 39 Industry loses research and resource management programs that are necessary to allow for 39 harvest opportunity; and Kodiak Island Borough Resolution No. FY2017-19 Page 1 of 2 Page 73 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 74 of 79 Review of the Alaska Municipal League Strategy Packet and Re... 40 WHEREAS, Impacts of these budget cuts are already apparent In the recently released 41 Togiak herring fishery 2017 harvest forecast and harvest limits where inadequate funding 42 precluded sampling necessary for scientific modeling used to set harvest limits, resulting in 43 reliance on historical average catch and a 10% harvest reduction for an uncertainty buffer, 44 and 45 WHEREAS, reduced harvest opportunities in any fishery result In fewer jobs, less income 46 and decreased tax revenue for the state of Alaska and coastal communities; and 47 WHEREAS, Governor Walker's previous fiscal plan included raising taxes on the fishing 48 industry, up to 33% In some areas, and the future fiscal plan is as yet unknown. 49 NOW, THEREFORE, BE IT RESOLVED that the Kodiak Island Borough Assembly strongly So requests the Alaska legislature and Governor Walker to not impose any more cuts to the 51 ADFG budget and particularly to the Division of Commercial Fisheries budget; 52 BE IT FURTHER RESOLVED that any tax revenue generated tram new or increased State 53 taxes on the commercial seafood industry be used to fill the funding gap for ADFG and pay 54 for continuing effective management of Alaska's commercial fisheries. 55 BE IT FURTHER RESOLVED that upon adoption, this Resolution shall be submitted to the 56 membership of the Alaska Municipal League for consideration and adoption. 57 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 58 THIS DAY OF 2016 59 60 KODIAK ISLAND BOROUGH 61 62 63 64 Dan Rohrer, Borough Mayor 65 66 ATTEST: 67 68 69 70 Nova M. Javier, MMC, Borough Clerk Kodiak Island Bomugh Resolution No. FY2017-19 Page 2 of 2 Page 74 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 75 of 79 Review of the Alaska Municipal League Strategy Packet and Re... RESOLUTION TO BE SUBMITTED TO AML UPON ADOPTION OF RESOLUTION NO. FY2017-19 ALASKA MUNICIPAL LEAGUE RESOLUTION NO. FY 2017 -XX A RESOLUTION REQUESTING THE ALASKA LEGISLATURE AND GOVERNOR WALKER TO NOT IMPOSE ANY MORE CUTS TO THE ADFG BUDGET AND PARTICULARLY TO THE DIVISION OF COMMERCIAL FISHERIES BUDGET AND ANY TAX REVENUE GENERATED FROM NEW OR INCREASED STATE TAXES ON THE COMMERCIAL SEAFOOD INDUSTRY BE USED TO FILL THE FUNDING GAP FOR ADFG AND PAY FOR CONTINUING EFFECTIVE - MANAGEMENT OF ALASKA'S COMMERCIAL FISHERIES WHEREAS, subsistence, sport and commercial harvests of Alaska's fish and game resources are vital to the social, cultural, and economic health of the Stale of Alaska; and WHEREAS, the Alaska seafood Industry is the second largest contributor to Alaska economy; and WHEREAS, the Alaska seafood industry directly provides over 60,000 direct jabs and thousands more Indirectly, making it the largest private -sector employer in the state; and WHEREAS, Alaska's commercial seafood industry pays over $250M annually in taxes and fees which exceeds current State commercial fisheries management spending; and WHEREAS, Alaska's seafood industry pays business and landing taxes that directly benefit over 65 communities and boroughs in Alaska and reduces community dependence on State funds; and WHEREAS, the seafood Industry relies on strong State commercial fishery research and management programs in order to provide that economic benefit; and WHEREAS, the Commercial Fisheries Division budget has been reduced by more than 20% in the past 2 years, from $50M to $40M which Includes offsets from CFEC funding, and the unrestricted general fund has been reduced by 30%; and WHEREAS, the Alaska Department of Fish and Game (ADFG) Is preparing for additional budget cuts of 10-14% In FYI B which could result In another S5.71M reduction to the Division of Commercial Fisheries; and WHEREAS, when the Division of Commercial Fisheries budget Is reduced, the seafood Industry loses research and resouroe management programs that are necessary to allow for harvest opportunity; and WHEREAS, Impacts of these budget cuts are already apparent in the recently released Togiak herring fishery 2017 harvest forecast and harvest limits where Inadequate funding precluded sampling necessary for scientific modeling used to set harvest limits, resulting in Page 75 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.b. Page 76 of 79 Review of the Alaska Municipal League Strategy Packet and Re... reliance on historical average catch and a 10% harvest reduction for an uncertainty buffer, and WHEREAS, reduced harvest opportunities in any fishery result in fewer jobs, less income and decreased tax revenue for the state of Alaska and coastal communities; and WHEREAS, Governor Walker's previous fiscal plan included raising taxes on the fishing industry, up to 33% in some areas, and the future fiscal plan is as yet unknown. NOW, THEREFORE, BE IT RESOLVED that the Alaska Municipal League strongly requests the Alaska legislature and Governor Walker to not impose any more cuts to the ADFG budget and particularly to the Division of Commercial Fisheries budget. BE IT FURTHER RESOLVED that any lax revenue generated from new or increased State taxes on the commercial seafood industry be used to fill the funding gap for ADFG and pay for continuing effective management of Alaska's commercial fisheries. PASSED AND APPROVED BY THE ALASKA MUNICIPAL LEAGUE ON THE _ DAY OF 12016 Signed: Bob Harcharek, President, Alaska Municipal League Attest: Kathie Wasserman, Executive Director, Alaska Municipal League Submitted by: Kodiak Island Borough Date Submitted: November 4, 2016 Contact name: Assembly member Rebecca Skinner Phone: (907) 512-0467 Contact name: Assembly member Kyle Crow Phone: (907) 736-9263 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Soard/Membership Action: Page 76 of 79 Review of the Alaska Municipal League Strategy Packet and Re... AGENDA ITEM #2.c. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 27. 2016 _ ASSEMBLY WORK SESSION L� TITLE: Discussion Regarding The MOA For Building Inspection And Permitting Services With The City Of Kodiak ORIGINATOR: Sara Mason FISCAL IMPACT: No Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: There are several prospective options the Borough has in moving forward with issues centered around the building code. Three options are presented for discussion, each having impacts on the existing MOA with the City of Kodiak for building inspection and permitting services. PURPOSE, ACTION, OR RECOMMENDED MOTION: Provide staff clear direction on how to proceed in preparing items for action at the next regular meeting. Kodiak Island Borough Page 77 of 79 Discussion Regarding The MOA For Building Inspection And Per... AGENDA ITEM #2.c. Page 78 of 79 Discussion Regarding The MOA For Building Inspection And Per... r Kodiak Island Borough of ' Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 _ Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Memorandum Date: October 26, 2016 To: Borough Mayor and Assembly Ce: Borough Manager From: Community Development Director RE: Building Code Brief This memo is to document three potential paths forward regarding the building code for the Assembly's October 27, 2016 Work Session. Here staff will present three options for the Assembly's consideration. 1) Keeping the 1997 Uniform Building Code and Terminaling the Existing MOA 2) Reverting to the 2012 International Residential Code and Extending the Existing MOA 3) Reverting to the 2012 International Residential Code, Providing an Opt -Out for Single -Family Residential Construction and Extending the Existing MOA 1) Keeping the 1997 International Residential Code and Terminating the Existing MOA The City of Kodiak has indicated its unwillingness to continue administration of the Borough's building code should the Borough opt to keep the 1997 Uniform Building Code. The Borough's implementation of this code creates Insurance concems for the City of Kodiak and requires the building Inspectors to maintain expertise on two complex building code documents. If the Borough wishes to pursue the administration of the 1997 Uniform Building Code, the Assembly will need to authorize the addition of one FTE and associated salary and benefits to administer the building codes of the Borough. The potential cost of this employee, at a Range 21.50, Step C, would be approximately $124.000.',2 Additionally, the Borough would likely have to modify Its general liability insurance policy and would have to obtain deferred status from the State Fire Marshall's office in order to perform Its own life and safety reviews in the same manner as the City of Kodiak. This is an aMosin ately 511,000 inctease in annual eapenditats when tamponed to the cost ofthe c wren building contact agreement, assuming similar actual expenditures to M015 and FY2016. ' This combines a salaryof V,tex nastely S/2,900 and benefits totaling app os:mately S51,1o0_ Page 78 of 79 Discussion Regarding The MOA For Building Inspection And Per... AGENDA ITEM #2.c. Page 79 of 79 Discussion Regarding The MOA For Building Inspection And Per... Under this scenario, individuals wishing to secure funding through entities such as the Alaska Housing Finance Corporation (AHFC) must pay agency approved inspectors to complete inspections before financing can be secured. Currently, no such inspectors reside in Kodiak. The cost of each individual inspection and associated travel for inspectors may cost an individual a significant amount of money in order to secure financing. This is in addition to the Borough's applicable permitting fees. In terms of revenue, the Borough is unlikely to see any significant change, as permit costs would presumably remain the same. 2) Reverting to the 2012 Residential Code and Extending the Existing MOA Reverting back to the 2012 International Residential Code would alleviate the City of Kodiak's concerns regarding insurance liability, as well as their concerns over Building Department staff administering two codes. This option requires updates to the existing MOA and does not require the creation of a full-time building inspector position for the Borough. The financial impact of this option on the Borough is minimal and is likely to include fixed inflation rates to account for increases in salaries in the MOA. The adopted FY2017 budget allocates $145,000 for contracted building official services, though actual expenditures were much lower for FY2015 and FY2016 at approximately $113,000 each year. Permit costs would presumably remain the same. Building to this code would not require additional inspection in order to obtain financing. 3) Reverting to the 2012 International Residential Code, Providing an Opt -Out for Single - Family Residential Construction and Extending the Existing MOA The narrative for option #2 also applies to this option. However, there may be lost revenue on permitting and review fees. In addition to what is described above, this option allows those constructing single-family residential structures to opt out of meeting the 2012 International Residential Code. In this scenario, those who require financing through entities such as AHFC may opt to build to the standards of the 2012 International Residential Code, while owner/builders who do not require financing may opt to forego adhering to the 2012 International Residential Code. Owner/builders who wish to sell their investment at some point may run into issues when selling to a buyer utilizing a banking institution to make the purchase. Lenders often require proof that a Certificate of Occupancy has been issued or that a building permit was issued for the original construction. If this option is pursued, staff strongly recommends that KIB require individuals opting out to complete paperwork stating that they understand the implications or potential ramifications of the decision to opt out of the 2012 International Residential Code. Further, staff recommends that a mechanism be put in place that allows for the revocation of a building permit if an individual makes the decision to opt out after permits have been issued. Further, a new process for obtaining plumbing and electrical permits without the issuance of a building permit will need to be developed. Currently, plumbing and electrical permits are required to connect new construction to the City of Kodiak and the Kodiak Electric Association's utility infrastructure. However, these permits are not currently issued without obtaining a building permit for new construction. Page 79 of 79 Discussion Regarding The MOA For Building Inspection And Per... KODIAK ISLAND BOROUGH WORK SESSION -' 5 pe -OM Me-c+r� Work Session of: 10 Please PRINT your name Please PRINT your name �f �.,C ID l% U4 &,W(uJ