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08/03/2017 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting August 3, 2017 A regular meeting of the Kodiak Island Borough Assembly was held on August 3, 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 Sergeant Major Dave Blacketer 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, Dennis Symmons, Dave Townsend, and Matthew Van Daele. Also present were Borough Manager Michael Powers, Borough Clerk Nova Javier, and Assistant Clerk Karen Siador. APPROVAL OF AGENDA AND CONSENT AGENDA VAN DAELE moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES The regular meeting minutes of May 18, 2017 were approved under the consent agenda. CITIZENS' COMMENTS Bill Roberts expressed his concerns about Resolution No. FY2018-09 specifying this would place the responsibility on municipalities rather than urging the State to address the issue. He was not opposed to the Resolution, he was just not happy that it was being dumped back on the Municipalities. Michael Johnson expressed his concerns about the proposed excise tax on cigarettes and other tobacco products. As a business owner of the only dedicated Vape shop in Kodiak, he stated that the proposed Ordinance unfairly and disproportionately affects his small business. He also stated that although there were visible similarities, from health perspective, vaping and smoking were not the same at all. Vaping was 95% safer than smoking cigarettes. From an economic stand point, the inclusion of vapor nicotine products could have a devastating impact on his business while no increased revenue for the Borough. If his shop closes, there would be no revenue generated for the Borough, no sales tax revenue for the City and people would lose jobs. He recognized the Borough's need to generate Revenue, but he was opposed to any tax that singles out vapors and punishes them for choosing an alternative safer smoking method. Judi Kidder commented about increase of City garbage bill and the Borough's dumpster bill. She noticed an increase of $11/ month from her July bill and she received the first notice after it took effect the first notice she had gotten after it took effect. She felt that the Borough's dumpster service was a bit unfair. She noted landfill needed signage because you can easily pass by it. She felt the Borough should inform the public of what was going on with the increase. Gary Lester expressed his concerns and opposed the tobacco tax increase. He stated that taxation should affect all residents equally not smokers. He stated with regard to the E911 surcharges, that it should affect everyone as well and the Assembly should think about what was fair and equitable for everyone. Kodiak Island Borough Assembly Regular Meeting Minutes Auaust 3. 2017 Paae 1 of 9 AWARDS AND PRESENTATIONS None. COMMITTEE REPORTS Assembly member Townsend had attended an Architectural Review Board Meeting on August 02, 2017 and discussed undergrounds storage tanks. They had approved 65% completion drawings for paving, removal and replacement of underground tanks for some elementary schools. They were looking into ways of making it cost effective as possible. As of that time they were in the design phase. PUBLIC HEARING Ordinance No. FY 2018-04 Amending KIBC Title 3 Revenue And Finance To Add Chapter 3.80 Excise Tax On Cigarettes And Other Tobacco Products. VAN DAELE moved to adopt Ordinance No. FY 2018-04. Due to 2018 budget constraints and recent cuts in Federal and State funding, it was necessary for the Borough to expand its tax base. After researching all possible options, a tax on cigarettes and other tobacco products was the most palpable option. The Borough exercised its authority granted to it by Alaska Statutes AS29.35.010 to levy a tax. SKINNER moved to amend Ordinance No. FY2018-04, lines 130 to 134 to read: Any nicotine product that is used in a vaporization device such as e -cigarettes, e -cigars, e -pipes, or any other product name used to provide nicotine vapors. The vaporization device is not subject to this tax if it is not sold packaged together with a nicotine product. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Crow, LeDoux, Skinner, Smiley, Symmons, Townsend, and Van Daele. SKINNER moved to amend line 179 of Ordinance No. FY2018-04 to change the levy of excise tax for each cigarette from $0.10 to $0.05. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: LeDoux, Skinner, Smiley, Symmons, Townsend, Van Daele, and Crow. SKINNER moved to amend line 187, from September 1, 2017 to October 1, 2017. ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Skinner, Smiley, Symmons, Townsend, Van Daele, Crow, and LeDoux. VAN DAELE moved to amend line 589 to change the effective date from September 1, 2017 to October 1, 2017. VAN DAELE moved to amend his amendment to include the effective date on line 181 as well as line 589. VOICE VOTE ON MOTION TO AMEND THE AMENDMENT CARRIED UNANIMOUSLY. ROLL CALL VOTE ON MOTION TO AMEND AS AMENDED CARRIED SIX TO ONE: Smiley, Symmons, Townsend, Van Daele, Crow, and LeDoux (Ayes); Skinner (No). Kodiak Island Borough Assembly Regular Meeting Minutes Auaust 3. 2017 Paae 2 of 8 TOWNSEND moved to amend by moving lines 130-134 under the exemptions. ROLL CALL VOTE ON MOTION TO AMEND CARRIED SIX TO ONE: Symmons, Townsend, Van Daele, Crow, LeDoux, and Smiley (Ayes); Skinner (No). Mayor Rohrer opened the public hearing. Tanya Kitka had been researching in regards to this topic because they were looking into buying the vape shop in town. She noted some common misconception about vaping. She stated that a 45% tax for a wholesale wasn't sustainable a small business. If the Borough was looking for ways to raise money, the Borough should raise tax on everything not just excise taxes on nicotine -related products. She was glad that the Assembly was carefully considering it before passing the Ordinance. Matthew Sauerland stated that he started smoking cigarettes when he came up to Alaska. It was really hard to quit smoking until the vape shop started the previous year. He started vaping in December and quit smoking overnight. He said that if this tax passed, the Borough would be punishing all smokers who were trying to quit and were looking into vaping as an option. He noted that if anything, vaping should be looked at a good thing because it encourages people to improve their lives. Betty MacTavish spoke about the origin of SB15 and elaborated on the statistics of E -cigarettes. She suggested that the Assembly raise the tax to $2 a pack. Judi Kidder stated that she was affected greatly by second hand smoke. She noted that anything that could help get rid of smoking would be beneficial for a lot of people who have serious issues with cigarette smoke. She added that vaping doesn't affect her just like a traditional cigarette would and did not think it was in the same class of product. Mayor Rohrer closed the public hearing. SKINNER moved to postpone Ordinance No. FY2018-04 to September 07 regular meeting and hold a public hearing. CROW withdrew the motion to postpone Ordinance No. FY2018-04. VOICE VOTE ON THE MOTION TOWNSEND moved to amend line 185 from 45% to 25% ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Townsend, Van Daele, Crow, LeDoux, Skinner, Smiley, and Symmons. ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED CARRIED FIVE TO TWO: Van Daele, Crow, LeDoux, Smiley, and Townsend (Ayes); Skinner and Symmons (Noes). BOROUGH MANAGER'S REPORT Manager Powers briefly reported on the following: • The opening of Chiniak for firewood gathering and issuing an RFP for the Chiniak slash and logs for commercial purposes. Kodiak Island Borough Assembly Regular Meeting Minutes August 3. 2017 Paae 3 of 8 Met with Kodiak College regarding their interest in the apartments currently leased to the University Of Alaska. Met with City over several topics. Sent out nearly $200,000 to the State's Department of Education for payments related to last year's bond refinancing. MESSAGES FROM THE BOROUGH MAYOR Mayor Rohrer announced the following: • Election cycle had opened up and acceptance of nominating petitions started as of August 1st. • Next week's work session would focus on land usage issues, chicken ordinance, small lots subdivisions, and other items. UNFINISHED BUSINESS 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 The motion was already on the floor which was to adopt Resolution No. FY2018-05. This resolution was postponed from the July 20, 2017 meeting. The Kodiak Island Borough imposed and collected a 911 surcharge from local telephone service providers. The surcharge was assessed on a monthly basis on each telephone line for the Kodiak road system. The surcharge was paid to the borough and the borough passed all of the fees to the City of Kodiak to operate and maintain the local enhanced 911 system. The surcharge had been $.75 per month per telephone line since 1995. The City had requested an increase in the surcharge from $.75 to $2.00. VAN DAELE disclosed that he had been hired by the City of Kodiak, but he felt that he does not have any conflict of interest. Mayor Rohrer ruled that Assembly member Van Daele did not have any conflict of interest. CROW appealed from the decision of the Chair. ROLL CALL VOTE ON APPEALING THE RULING THREE TO THREE: LeDoux, Smiley, and Townsend (Ayes); Crow, Skinner, and Symmons (Noes). The Mayor's ruling was sustained. CROW moved to amend the Resolution from $2.00 to $1.50. ROLL CALL VOTE ON MOTION TO AMEND FAILED THREE TO FOUR: Skinner, Symmons, and Crow (Ayes); LeDoux, Smiley, Townsend, and Van Daele (Noes). ROLL CALL VOTE ON THE MOTION CARRIED SIX TO ONE: LeDoux, Skinner, Smiley, Townsend, Van Daele, and Crow (Ayes); Symmons (No). NEW BUSINESS Contracts None. Resolutions Resolution No. FY2018-02A Amending Resolution No. FY2018-02 Schedule Of Fees Kodiak Island Borough Assembly Regular Meeting Minutes August 3. 2017 Pace 4 of 8 Of The Kodiak Island Borough LEDOUX moved to adopt Resolution No. FY2018-02A. This fee schedule change was requested by the Assembly which would waive any application fees for accessory dwelling units. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Smiley, Symmons, Townsend, Van Daele, Crow, and Ledoux. 2. Resolution No. FY2018-08 Authorizing The Assessor To Assess The Spruce Cape Homes Low -Income HousingTax Credit (LIHTC) Project Based On Restricted Rents. SKINNER moved to adopt Resolution No. FY2018-08. The growing need for safe, affordable, quality housing in Kodiak had prompted Spruce Cape Homes, Swell, LLC. to pursue the construction of a 50 unit project that was implemented in two phases with the assistance of low-income housing tax credits. These tax credits helped fund the initial investment for construction. The request from the project owners was that the Kodiak Island Borough assess the project based on actual rents and not by market rents. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Smiley, Symmons, Townsend, Van Daele, Crow, Ledoux, and Skinner. 3. Resolution No. FY2018-09 Requesting That The Legislature Repeal The Senior Citizens/Disabled Veteran's Property Tax Exemption (AS 29.45.030(9)), Excluding The Value From The Determination Under AS 14.17.510, Giving Control To Local Governments For Those Fiscal Decisions. CROW moved to adopt Resolution No. FY2018-09. This resolution was requested by Assembly member Kyle Crow at the July 27 work session. This resolution requested that the Alaska Municipal League urge the legislature to repeal the Senior Citizen's/Disabled Veteran's Property Tax Exemption (AS 29.45.030(g)), excluding the value from the determination under AS 14.17.510, giving control to local governments for those fiscal decisions Upon adoption, this Resolution was submitted to the membership of the Alaska Municipal League for consideration and adoption. ROLL CALL VOTE ON THE MOTION CARRIED FIVE TO TWO: Symmons, Crow, LeDoux, Skinner, and Smiley (Ayes); Townsend and Van Daele (Noes). Ordinances for Introduction 1. Ordinance No. FY2018-05 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of Lot 1A, Block 3, Tract A, Larsen Bay Subdivision from Residential to Mixed Commercial/Waterfront/Residential (P&Z Case No. 17-025). LEDOUX moved to advance Ordinance No. FY2018-05 to public hearing at the next regular meeting of the Assembly. Kodiak Island Borough Assembly Regular Meeting Minutes Auoust 3. 2017 Pace 5 of 8 This Comprehensive Plan Future Land Use Designation change request and subsequent rezone request (P&Z Case No. 17-026) were the result of a substantiated complaint regarding the operation of a commercial lodge on R1 -Single-family Residential zoned Lots 1A, 2, 3, and 4, Block 3, Tract A, Larsen Bay Subdivision (a prohibited use in that zoning district). A commercial lodge (Kodiak Legends Lodge) had operated on lot 1A since 1998. Since 2009, related lodge activities had been expanded onto adjacent Lots 2, 3, and 4. The applicant desired to continue the existing lodge operation. To legally do so, the subject lots were rezoned from R1 -Single-family Residential to B -Business. Although B -Business zoning was consistent with various objectives of the adopted Comprehensive Plan, it was not consistent with the Residential Future Land Use Designation assigned to the lots. Accordingly, that designation was changed to a designation that was consistent with B -Business zoning. The requested Mixed Commercial/Waterfront/Residential designation was consistent with B -Business zoning. The Planning and Zoning Commission held a public hearing on this request at their April 19, 2017 regular meeting. The Commission, after hearing public comment opposing the amendment, voted to postpone the request to the June 21, 2017 regular meeting. The intent of the postponement was to allow sufficient time for additional input from the City of Larsen bay and residents. In an effort to solicit additional public input, the June 21, 2017 public hearing was advertised to all listed Larsen Bay property owners. After that public hearing, the Commission, voted unanimously to divide the request by separating the proposed 2008 Comprehensive Plan amendment for Lot 1A from Lots 2, 3, and 4. The question was divided to accommodate addressing the long standing lodge use separately from the more recently expanded lodge related activities. The Commission then voted unanimously to recommend that the Assembly approve the 2008 Comprehensive Plan amendment for lot 1A and postponed the proposed amendment for Lots 2, 3, and 4 to their April 19, 2018 regular meeting The intent of the postponement was to allow sufficient time for further input on the more recently established lodge related activities taking place on those lots and to accommodate a review of the City of Larsen Bay annex to the 2008 Comprehensive Plan as it pertains to the establishment of new lodges in that community. Accordingly, the ordinance before the Assembly only applied to Lot 1A. ROLL CALL VOTE ON MOTION CARRIED FIVE TO TWO: Townsend, Van Daele, LeDoux, Skinner, Smiley (Ayes); Crow and Symmons (Noes). 2. Ordinance No. FY2018-06 Rezoning Lot 1A, Block 3, Tract A, Larsen Bay Subdivision From R1 -Single -Family Residential District To B -Business District (P&Z Case No. 17- 026). LEDOUX moved to advance Ordinance No. FY2018-06 to public hearing at the next regular meeting of the Assembly. This rezone request followed a 2008 Comprehensive Plan amendment request for the same parcels (Lots 1A, 2, 3, and 4, Block 3, Tract A, Larsen Bay Subdivision, P&Z Case No. 17-026, KIB Ordinance No. FY2018-05). As was the case with the associated Comprehensive Plan amendment request (P&Z Case No. 17-026), the Planning and Zoning Commission initially postponed the rezone request. The request was later divided by separating the proposed rezone of Lot 1A from lots 2, 3, and 4. The Commission then unanimously voted to recommend that the Assembly approve the rezone of Kodiak Island Borough Assembly Regular Meeting Minutes Auoust 3. 2017 Paae 6 of 8 Lot 1A and postponed the proposed rezone of Lots 2, 3, and 4 to their April 19, 2018 regular meeting. The intent of the postponement was to allow sufficient time for further public input on the request as it applies to those lots and to accommodate a review of the City of Larsen Bay annex to the 2008 Comprehensive Plan to address the establishment of new lodges in that community. Accordingly, the ordinance before the Assembly only applied to Lot 1A. ROLL CALL VOTE ON MOTION CARRIED FIVE TO TWO: Van Daele, LeDoux, Skinner, Smiley, and Townsend (Ayes); Crow and Symmons (Noes). 3. Ordinance No. FY2018-07 Rezoning Lot 4, Block 19, Tract A, Larsen Bay Subdivision From R1 -Single -Family Residential District To B -Business District (P&Z Case No. 17- 030). VAN DAELE moved to advance Ordinance No. FY2018-07 to public hearing at the next regular meeting of the Assembly. This rezone request was the result of a substantiated complaint regarding the operation of a commercial lodge on an R1 -Single-family Residential zoned lot in the City of Larsen Bay (a prohibited use in that zoning district). A commercial lodge (Foxtail Lodge) had operated on the subject lot since 2000. The applicant desired to continue the lodge operation. To legally do so, the existing lodge was brought into compliance with the requirements of Title 17 (Zoning) of the Borough code by rezoning the lot to a district that permits such use. Lodges had been determined to be a permitted use in B - Business zoning. B -Business zoning was also consistent with the Commercial Future Land Use Designation assigned to the lot and various objectives of the adopted Comprehensive Plan. Accordingly, a rezone to B -Business was requested. The Planning and Zoning Commission held a public hearing on this rezone request at their June 21, 2017 regular meeting. The Commission voted unanimously to recommend that the Assembly approve this rezone. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Crow, LeDoux, Skinner, Smiley, Symmons, Townsend, and Van Daele. Other Items None. CITIZENS' COMMENTS Jane Petrich expressed her concerns regarding the Ordinances No. FY2018-05, FY2018-06, and FY2018-07. She noted that the Larsen Bay City Council, Tribal Council and 25 residents of Larsen Bay expressed their opposition of these rezone requests. The community wanted to be involved in this decision and they requested the Borough's assistance in understanding zoning laws and regulations. Judi Kidder was glad that the Community Development Department was going to follow their expiration dates regarding their conditional permits. She talked about Relay for life and the future land use of Woody Way field which she thought should be developed. Betty MacTavish thanked the Assembly for the progress they had made considering the $1.00 tax on tobacco and other tobacco related products. She had also mentioned that tobacco products that have been purchased online get taxed as well. The agency who sells it will receive a mailed tax bill from the State of Alaska. Kodiak Island Borough Assembly Regular Meeting Minutes Auaust 3. 2017 Paae 7 of 8 ASSEMBLY MEMBERS' COMMENTS Assembly member Crow acknowledged Judi Kidder's comment about the landfill sign and he encouraged the public to run for office for the upcoming municipal election. Assembly member Smiley said that 911 discussions were interesting and he was glad that it passed. He voiced his concern on how the Assembly would work on the nicotine discussion in the future. Assembly member LeDoux stated that he found the discussion about conflict of interest interesting and certainly honest. He felt bad not declaring a conflict of interest when they had passed the budget for mill rates which he had a substantial amount of financial interest on. Assembly member Skinner suggested that conflict of interest would be a good topic in the future for the Assembly. She also encouraged members of the public who were highly interested to be proactive and be a part of the Assembly. She would like the Assembly to explore some facilitated dialogue with Larsen Bay. She noted that the new signs at Mill Bay beach clearly communicated their intended purpose. She also noted that Parks and Recreation Committee was in the process of creating catalogue of what the committee's resources were and spoke regarding Woody Way field development. Assembly member Symmons was grateful for the public, staff and Assembly.This meeting brought up lot of interesting things and he was looking forward to talk to Larsen bay community. Assembly member Van Daele appreciated public comments and feedback from Larsen Bay. Assembly member Townsend encouraged people to run for the assembly and he decided not to run for the upcoming election. Announcements Mayor Rohrer announced that the Assembly would hold a work session on Thursday, August 10, 2017 at 6:30 p.m. in the school district conference room and the next regular meeting was scheduled on Thursday, August 17 at 6:30 p.m. in the Borough assembly chambers. Nominating packets were available in the Clerk's Office for various Assembly, School Board, and Service Area seats. The candidacy filing period would be open from August 1 to August 15. ADJOURNMENT CROW moved to adjourn the meeting. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. The meeting was adjourned at 10:18 p.m. KODIAMD BOROUGH Daniel A. Rohrer, Mayor Approved on: September 7, 2017 Kodiak Island Borough Assembly Regular Meeting Minutes Auaust 3. 2017 Pace 8 of 8