07/20/2017 Regular MeetingKODIAK ISLAND BOROUGH
Assembly Regular Meeting
July 20, 2017
A regular meeting of the Kodiak Island Borough Assembly was held on July 20, 2017, in the
Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting
was called to order at 6:30 p.m.
The invocation was given by Major David Davis of the Salvation Army. Mayor Rohrer led the
Pledge of Allegiance.
Present were Mayor Dan Rohrer, Assembly members Kyle Crow, Larry LeDoux, Rebecca
Skinner, Scott Smiley, and Dennis Symmons. Also present were Borough Manager Michael
Powers, Borough Clerk Nova Javier, Deputy Clerk Laurie Pardoe, and Assistant Clerk Karen
Siador.
LEDOUX moved to excuse Assembly member Townsend and Van Daele who were absent
due to personal leave.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA AND CONSENT AGENDA
LEDOUX moved to approve the agenda and consent agenda.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
The regular meeting minutes of June 1 and June 15, 2017; and special meeting minutes of May
25 and June 21, 2017 were approved under the consent agenda.
CITIZENS' COMMENTS
Judi Kidder commented on the following issues: engineering requirement, large parcels not on
water and sewer that are being developed, and the inability to put up a storage unit on a
property where there is no primary dwelling.
Betty MacTavish was disappointed that the Borough did not tap into the resources she provided
in the past. She further commented on Ordinance No. FY2018-04.
Gary Lester also commented on Ordinance No. FY2018-04.
Lind Freed was present to answer any questions regarding the KFDA Appointments.
Lorna Arndt commented regarding the garbage contracts and the 911 Resolution.
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AWARDS AND PRESENTATIONS
Manager Powers presented a 15 -year longevity award to Teresa Medina, Cashier, in the
Finance Department.
The assembly received an Individual Disaster Preparedness Presentation from Associate
Planner/ ENF Jack Maker.
COMMITTEE REPORTS
Assembly member Skinner reported on the current activities of the Parks and Recreation
Committee. The Committee recently held a joint work session with the City Parks and Rec
Committee and will soon work together updating the comprehensive plan.
Assembly member LeDoux reported on the KWRAC meeting he recently attended.
PUBLIC HEARING
Ordinance No. FY2017-01B Amending Ordinance No. FY2017-01, Fiscal Year 2017
Budget, By Amending Budgets To Account For Various Revenues That Are Over
Budget, Providing For Additional Expenditures And Moving Funds Between Projects.
SKINNER moved to adopt Ordinance No. FY2017-01 B.
The budget adjustments accounted for the following:
• Increase Fund 100 - General Fund Use of Fund Balance to reimburse Fund 234 - LEPC
$18,337.65 for unreimbursed expenses from 2004-2016.
• Increase Fund 210 — Land Sales revenues by $307,400 for the sale of Borough fixed
assets (land) during Land Sale #19.
• Increase Fund 220 - Building and Grounds Use of Fund Balance by $336,370 and
transfer funds to Fund 469 - Renewal and Replacement Projects project #17005 Main
Elementary Walkway.
• Increase Fund 252 — Womens Bay Fire Department Use of Fund Balance by $50,000;
$40,000 to complete the generator installation and $10,000 for purchase of new turnout
gear.
• Increase Fund 254 - KIB Airport Fire District Use of Fund Balance by $30,000 for 3rd
party fire hydrant installation and repairs.
• Increase Fund 276 — Facility Fund Use of Fund Balance by $297,584; $286,454 to Fund
300 Debt Service to help defray the Governor's Veto (25% reduction to State School
Debt Reimbursements) and to reduce the subsequent loan from the Fund 100 - General
Fund, and $11,130 to Fund 469 - Renewal and Replacement Projects project # 17005
Main Elementary Walkway.
• Fund 426 - Capital Projects: reduce budget for project #12015 KFRC Energy Project,
return $19,179.97 of excess funds to Fund 555 - KFRC (Kodiak Fisheries Research
Center) and close project.
• Fund 450 - Capital Projects: reduce budget for project #12016 Fire Protection Area #1
Emergency Generator, return $57,492.57 of unused funds to Fund 250 - Fire Protection
Area #1 and close project.
• Fund 469 - Renewal and Replacement Projects #11004 Akhiok Teacherage: reduce
budget by $14.65 and move funds to Fund 450 - Capital Projects project #12009 Chiniak
Warning Sirens to pay for expenditures that exceeded the budget and close project.
• Fund 469 - Renewal and Replacement Projects project #11004 Akhiok Teacherage:
reduce budget by $1,866.75 and move funds to Fund 450 - Capital Projects project #
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12011 Emergency Generator to pay for expenditures that exceeded the budget and
close project.
• Fund 469 - Renewal and Replacement Projects: reallocate $45,000 from project #11009
Island Wide UST Removal/Replacement to project #11003 Chiniak Remote UST.
• Fund 469 - Renewal and Replacement Projects: reallocate $1,230,319.33 from #13010
Kodiak Middle School HVAC Controls to project #13006 Borough Building Rehab and
close project .
• Fund 469 - Renewal and Replacement Projects: reallocate $43,183.66 from #12001
North Star Elementary Exterior Repairs to project #13006 Borough Building Rehab and
close project
• Fund 470 - Capital Projects: reallocate $60,000 from project #15003 Roofing
Replacement to project #15010 Playground Replacement.
• Fund 470 - Capital Projects: reallocate $20,000 from project #15003 to project #15008
Flooring Replacement.
• Fund 495 - Capital Projects project #08004 Compu Assisted Appraisal Collection
Program: reduce budget by $41,160.84 and close project.
• Fund 495 - Capital Projects: reduce budget by $4,297,013.83 for project #09010 Long -
Term Care Center and close project.
• Increase Fund 530 - Municipal Solid Waste Collection Use of Fund balance by $20,000
to pay for software and software security upgrades.
• Decrease 540- Hospital Fund Advance to Fund 469 by $2,474,937.62 to pay off the
2015 loan by reducing the budgets and transferring funds from the following projects in
Fund 469 - Renewal and Replacement Projects:
o Project #11002 East Elementary Generator - $62,637.17 and close project
o Project #11004 Akhiok Teacherage - $43,497.60 and close project
o Project #12005 East Elementary & Peterson Flooring - $733,170.21 and close
o Project #12006 KMS Elevator Controls - $51,794.40 and close project
o Project #12007 Larsen Bay School Roof Replacement - $60,037.29 and close
project
o Project #12008 Main Underground Storage Tank - $0.77 and close project
o Project #13007 Port Lions Exterior Painting $35,549.51 and close project
o Project #13010 Kodiak Middle School HVAC Controls $306,935.67
o Project #13011 Peterson HVAC Controls $624,427.00 and close project
o Project #13012 Middle School Paving $415,383.00 and close project
o Project #13013 Auditorium Flooring Foyer & Hall $141,505 and close project
• Move the following FY2016 balance sheet items from Fund 540 - Hospital to fund 545 -
Long -Term Care Center:
o Cash - $2,184,444.00
o Custodial Cash with BNYMellon - $1,346,689.50
o Building - $15,567,986.00
o Accumulated Depreciation - $43,244.00
o Revenue Bonds Principal - $15,880,000.00
o Unamortized Premium on Bonds - $1,365,855.00
o Retained Earnings- $1,812,552.20
• Increase Fund 555 — KFRC (Kodiak Fisheries and Research Center) Use of Fund
Balance by $580,000; $380,000 for additional repair work to the HVAC system,
$100,000 for fire and sprinkler system and $100,000 for pump repairs.
SKINNER moved to amend Ordinance No. FY2017-01 B by substitution.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Crow, LeDoux,
Skinner, Smiley, and Symmons.
Mayor Rohrer opened the public hearing.
Kodiak Island Borough
July 20, 2017
Assembly Regular Meeting Minutes
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Seeing and hearing none, Mayor Rohrer closed the public hearing.
ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: LeDoux, Skinner,
Smiley, Symmons, and Crow.
BOROUGH MANAGER'S REPORT
Manager Powers briefly updated the Assembly on the following:
• Travel to anchorage to meet with AML/JiA for coverage issues.
• MOA for building services with the City of Kodiak
• Working with Kodiak college re lease of apartments on Near Island
• Finance Director is working on the accounting dashboard software
• Strategic planting of new trees in Chiniak and other related issues in Chiniak
• Resource Management Officer was tasked with developing a long-term maintenance
plan
• Staff met with AK DOT with their regional planner and safety engineer, will have a
response from them shortly to address, walked them through KIB CIPs, took second
look for improvements at Powell
• Received 2 proposals for solid waste in response to RFP
MESSAGES FROM THE BOROUGH MAYOR
• Mayor Rohrer announced that Island Trails Network is cleaning up trails. They are
maintaining them to keep them usable at no expense to the Borough.
• Nonprofit process — creating a timeline for a new process
• Facilities fund
UNFINISHED BUSINESS
1. Resolution No. FY2017-39 Disposing By Sale Of A ± 21 Acre Portion of T24S R24W
TL 3301 Onion Bay.
A motion was already on the floor to adopt Resolution No. FY2017-39. This resolution was
postponed from the June 1, 2017 meeting to the July 20, 2017 regular meeting.
LEDOUX moved to postpone Resolution No. FY2017-39 indefinitely.
ROLL CALL VOTE ON MOTION TO POSTPONE FAILED THREE TO TWO: Skinner,
Symmons, and LeDoux (Ayes); Smiley and Crow (Noes).
SKINNER moved to amend Resolution No. FY2017-39 by substitution with Version 2.
SKINNER moved to amend the amendment to strike out "direct negotiation or' on line 45.
ROLL CALL VOTE ON MOTION TO AMEND THE AMENDMENT CARRIED FOUR TO ONE:
Symmons, Crow, LeDoux, and Skinner (Ayes); Smiley (No).
ROLL CALL VOTE ON MOTION TO AMEND AS AMENDED CARRIED FOUR TO ONE:
Symmons, Crow, LeDoux, and Skinner (Ayes); Smiley (No).
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ROLL CALL VOTE ON MOTION AS AMENDED FAILED FOUR TO ONE: Crow, LeDoux,
Smiley, and Symmons (Ayes); Skinner (No).
NEW BUSINESS
Contracts
None.
Resolutions
Resolution No. FY2018-05 Changing The 911 Surcharge On All Local Exchange
Access Lines In The Area From Seventy-five Cents To Two Dollars Per Month
SMILEY moved to adopt Resolution No. FY2018-05.
The Kodiak Island Borough imposes and collects a 911 surcharge from local telephone service
providers. The surcharge is assessed on a monthly basis on each telephone line for the Kodiak
road system. The surcharge is paid to the borough and the borough passes all of the fees to the
City of Kodiak to operate and maintain the local enhanced 911 system. The surcharge has been
$.75 per month per telephone line since 1995. The City has requested an increase in the
surcharge from $.75 to $2.00.
CROW moved to postpone Resolution No. FY2018-05 to the next regular meeting of the
Assembly.
ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: LeDoux,
Skinner, Smiley, Symmons, and Crow.
2. Resolution No. FY2018-07 AML/JIA Three Year Participation Agreement.
SMILEY moved to adopt Resolution No. FY2018-07.
Kodiak Island Borough has retained AMLJIA as our insurance provider since July, 1994. The
Borough has supported board member participation by staff since 1988. Borough staff board
memberships include; Jerome Selby from beginning of AMLJIA in 1988 until his retirement, Rick
Gifford during his employment at the Borough, Karl Short from 1994 through his retirement in
2016. The Assembly has also encouraged the current manager, Michael Powers to apply for a
vacant board seat. Although not mandatory in order to keep AMLJIA as our insurance provider,
signing the attached participation agreement does provide the Borough a 5% discount on our
insurance premium. Had the Borough signed a participation agreement three years ago, the
savings during that time would have been approximately $58,900 or $19,600 per year.
ROLL CALL VOTE ON MOTION CARRIED FOUR TO ONE: Skinner, Smiley, Crow, and
LeDoux (Ayes); Symmons (No).
3. Resolution No. FY2018-06 Appointing Members to the Kodiak Fisheries Development
Association Board of Directors (Linda Freed and Albert Tyler Schmeil).
SMILEY moved to adopt Resolution No. FY2018-06.
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The Kodiak Island Borough and City of Kodiak jointly designated the Kodiak Fisheries
Development Association (KFDA) as the Eligible Crab Community Entity (ECCE). The by-laws
of the KFDA provide for appointment of Directors to the Board by the Kodiak Island Borough
Assembly and the Kodiak City Council for three year terms.
Two of the three "Joint KFDA Director's Seats" expires in July 2017. Ms. Linda Freed and Mr.
Albert Schmeil wish to be reappointed for the seats to expire July 2020.
Note: The City of Kodiak would have to approve the appointments also.
The Clerk's Office advertised for these seats on June 16, 2017 and also posted the vacancies
on the KIB website and on Facebook.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Smiley, Symmons, Crow,
LeDoux, and Skinner.
Ordinances for Introduction
Ordinance No. FY2018-04 Amending KIBC Title 3 Revenue And Finance To Add
Chapter 3.80 Excise Tax On Cigarettes And Other Tobacco Products.
SMILEY moved to adopt Ordinance No. FY2018-04 in first reading to advance to public hearing
at the next meeting of the Assembly.
Due to 2018 budget constraints and recent cuts in Federal and State funding, it has become
necessary for the Borough to expand its tax base. After researching all possible options, a tax
on cigarettes and other tobacco products is the most palpable option. The Borough will exercise
its authority granted to it by Alaska Statutes AS29.35.010 to levy a tax.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Symmons, Crow, LeDoux,
Skinner, and Smiley.
Other Items
Assembly Approval To The Kodiak Fisheries Work Group Invitation Letter To The
Subcommittee On Oceans, Atmosphere, and Fisheries.
LEDOUX moved to approve the Kodiak Fisheries Work Group invitation letter to the
Subcommittee on Oceans, Atmosphere, and Fisheries.
This letter is addressed invites the Subcommittee on Oceans, Atmosphere, and Fisheries to
Kodiak to conduct a listening session on the reauthorization of the Magnuson -Stevens Fishery
Conservation and Management Act (Magnuson -Stevens Act). As one of the leading fishing
ports in the nation, Kodiak is uniquely qualified to present a cohesive view of the many aspects
of the fishing industry to subcommittee members.
This letter is addressed invites the Subcommittee on Oceans, Atmosphere, and Fisheries to
Kodiak to conduct a listening session on the reauthorization of the Magnuson -Stevens Fishery
Conservation and Management Act (Magnuson -Stevens Act). As one of the leading fishing
ports in the nation, Kodiak is uniquely qualified to present a cohesive view of the many aspects
of the fishing industry to subcommittee members.
To approve the Kodiak Fisheries Work Group invitation letter to the Subcommittee on Oceans,
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Atmosphere, and Fisheries.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Crow, LeDoux, Skinner, Smiley,
and Symmons.
2. Support For Fisheries Innovation Fund Project Number 57743, "Chinook Salmon Hot
Spot Reporting, Mapping And Avoidance Program For The Central Gulf Of Alaska
Pollock Fishery."
SMILEY moved to approve the letter of support for the Fisheries Innovation Fund Project
Number 57743.
This letter is in support of Project Number 57743, "Chinook Salmon Hot Spot Reporting,
Mapping and Avoidance Program for the Central Gulf of Alaska Pollock Fishery" which directly
addresses priority number 1 (innovations in bycatch reduction) through the implementation of a
Chinook salmon bycatch and hotspot reporting program similar to the Bering Sea pollock fishery
rolling hotspot closure program (implemented by Sea State, Inc and in place since 2002), but
adapted to the smaller and less sophisticated shore -based Kodiak pollock fleet. This project
also meets the geographical priority "Gulf of Alaska groundfish fisheries".
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: LeDoux, Skinner, Smiley,
Symmons, and Crow.
CITIZENS' COMMENTS
Judi Kidder thanked Manager Powers for his response regarding the engineering issues. She
also commented regarding the facilities fund, firewood permitting in Chiniak, and the proposed
E911 rates.
Betty MacTavish expressed her disappointed regarding how the Assembly is moving forward
with the tobacco taxes.
Linda Freed encouraged the Assembly to give serious consideration on the proposed E911 rate
increase.
ASSEMBLY MEMBERS' COMMENTS
Assembly member LeDoux congratulated Assembly member VanDaele on the birth of his
daughter.
Assembly member Symmons thanked the citizens and staff for attending. He commented on the
Ouzinkie playground, and Al Logging.
Assembly member Smiley was happy the new trees are planted in Chiniak. He complimented
Jack Maker for the interesting presentation regarding the disaster preparedness.
Announcements
Mayor Rohrer announced the Assembly will hold a work session on Thursday, July 27 at 6:30
p.m. in the School District Conference Room and the next regular meeting is scheduled on
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Thursday, August 3 at 6:30 p.m. in the Borough Assembly Chambers. Nominating packets are
available now in the Clerk's Office for various Assembly, School Board, and Service Area Seats.
The filing for office will be from August 1 to August 15.
EXECUTIVE SESSION
1. Offer To Settle A Grievance Brought On Behalf Of The Borough's Union -Represented
Employees, Submitted By The International Brotherhood Of Electrical Workers, Local
1547.
SKINNER moved to convene into executive session to discuss an offer to settle a grievance
brought on behalf of the Borough's union -represented employees, submitted by the International
Brotherhood of Electrical Workers, Local 1547, the immediate public knowledge of which would
adversely impact the Borough's finances.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Smiley, Symmons, Crow,
and LeDoux.
SKINNER moved to invite the Mayor, Assembly, Manager, and Borough Clerk into executive
session.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
After the vote, Mayor Rohrer recessed the regular meeting and convened the executive session.
Upon returning from the executive session, Mayor Rohrer reconvenes the regular meeting and
announced that direction was given to the manager on how to settle the grievance.
ADJOURNMENT
LEDOUX moved to adjourn the meeting at 10:20 p.m.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
I1
KODIAK 8 AND BOR
aniel A. Rohrer, Mayor
Nova M. Javier, MMC, Borlugh Clerk Approved on: September 7, 2017
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