2019-09-26 Work Session
Kodiak Island Borough
Assembly Work Session
Thursday, September 26, 2019, 6:30 p.m.
School District 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
meeting.
Page
1. COMMENTS (Limited to Three Minutes per Speaker)
2. AGENDA ITEMS
3 - 7 a. Discussion Regarding Use of Fund Balance To Install Three New
Light Poles In The Woodland Acres Lighting Service Area
Output Document (AS - 1031) - Pdf
8 - 12 b. Mill Levy Ordinance
Agenda Statement Ordinance No. FY2020-08
Ordinance No. FY 2020-08 Amending Tax Levy Procedures
13 - 47 c. Antone Larson Bay/Sharatin Bay Project Update - Great Lands
Trust
Anton Larsen Bay Project Information Handout
Anton Larsen Bay Work Session Presentation
3. MANAGER COMMENTS
4.
5. PACKET REVIEW
Items may be added during the work session for inclusion on the Regular Meeting agenda. The
item title needs to be provided/developed at the work session in enough detail to give assembly
and public reasonable notice.
PUBLIC HEARING
Ordinance No. FY2019-20 Amending Chapters 17.160 KIBC
(Accessory Buildings and Accessory Dwelling Units)
Ordinance No. FY2020-04 An Ordinance Of The Assembly Of The
Visit our website at
www.facebook.com/Kodiakislandborough @KodiakBorough
www.kodiakak.us
Page 1 of 47
Kodiak Island Borough Amending Kodiak Island Borough Code Title 3
Revenue And Finance, Chapter 3.35 Real Property Tax, Section
3.35.030 Real And Personal Property Exempted From Taxation.
Ordinance FY2020-06 to amend KIBC 17.10.030 Comprehensive Plan
to include the City of Kodiak Near Island Development Plan - Concept A,
Minimum Development.
NEW BUSINESS
CONTRACTS
Contract FY2020-07 Approval of 1-Year Contract with Matson
Navigation Company of Alaska, Inc. for Metals Processing and Hauling
RESOLUTIONS
Resolution No. FY2020-11 Granting A Nonexclusive Easement For
Access, Both To Ingress And Egress, For Vehicular And Pedestrian
Traffic
ORDINANCES FOR INTRODUCTION
Ordinance No. FY2020-01A Amending Ordinance No. FY2020-01,
Fiscal Year 2020 Budget, By Amending Budgets To Account For
Various Revenues That Are Over Budget, Providing For Additional
Expenditures And Moving Funds Between Projects.
Ordinance FY2020-08 Amending Kodiak Island Borough Code Of
Ordinances Title 3 Revenue And Finance Chapter 3.25 Appropriation
And Levy Section 3.25.010 Ordinance Enactment, And Section 3.25.020
Tax Levy Form, and Providing For An Effective Date
Ordinance FY2020-10 Amending Kodiak Island Borough Code of
Ordinances Title 3 Revenue And Finance Chapter 3.05 Fiscal Policy
Section 3.05.080 Reserve Policies
OTHER ITEMS
Support Letter For Funding From Exxon Valdez Oil Spill (EVOS) Trustee
Council For Antone Larson Bay/Sharatin Bay Project - Great Lands
Trust
6. ASSEMBLY MEMBERS COMMENTS
7.
Visit our website at
www.facebook.com/Kodiakislandborough @KodiakBorough
www.kodiakak.us
Page 2 of 47
AGENDA ITEM #2.a.
KODIAK ISLAND BOROUGH
STAFF REPORT
SEPTEMBER 26, 2019
ASSEMBLY WORK SESSION
SUBJECT: Discussion Regarding Use of Fund Balance To Install Three New Light Poles
In The Woodland Acres Lighting Service Area
ORIGINATOR: Dora Cross
RECOMMENDATION:
DISCUSSION:
Since the Woodland Acres Lighting Service Areas does not have an active board, staff is
requesting direction regarding a request from Mr. Scott Ardnt, Service Area #1 Board Chair,
to use approximately $15,000 of the Services Area's fund balance to install three new lighting
poles. Cost estimates and map of locations are included.
ALTERNATIVES:
FISCAL IMPACT:
OTHER INFORMATION:
Kodiak Island Borough
Page 3 of 47
Discussion Regarding Use of Fund Balance To Install Three New Light Pole...
AGENDA ITEM #2.a.
Page 4 of 47
Discussion Regarding Use of Fund Balance To Install Three New Light Pole...
AGENDA ITEM #2.a.
Page 5 of 47
Discussion Regarding Use of Fund Balance To Install Three New Light Pole...
AGENDA ITEM #2.a.
Page 6 of 47
Discussion Regarding Use of Fund Balance To Install Three New Light Pole...
AGENDA ITEM #2.a.
Page 7 of 47
Discussion Regarding Use of Fund Balance To Install Three New Light Pole...
AGENDA ITEM #2.b.
KODIAK ISLAND BOROUGH
STAFF REPORT
OCTOBER 3, 2019
ASSEMBLY REGULAR MEETING
SUBJECT:Ordinance FY2020-08 Amending Kodiak Island Borough Code Of Ordinances
Title 3 Revenue And Finance Chapter 3.25 Appropriation And Levy Section
3.25.010 Ordinance Enactment, And Section 3.25.020 Tax Levy Form, and
Providing For An Effective Date
ORIGINATOR:Dora Cross
RECOMMENDATION:
Move to advance Ordinance FY2020-08 to public hearing.
DISCUSSION:
Staff Comments:
The current provisions in Kodiak Island Borough Code 3.25.010 call for an annual
appropriation and tax levy ordinance. Our practice has been to approve the tax levy by
ordinance. The process for levying taxes and setting the annual mill rate in state lawcalls for
the adoption by resolution.
Borough Attorney Comments
If the majority of the Assembly wants to keep using the process they have been using (i.e.
setting the mill rate in the budget ordinance and appropriating the funds in that ordinance)
then no change to the code is required. They can continue to use that method as long as
they want, so long as they are aware of and accept the risks associated with doing so.
The risk which the Borough would be assuming is that a taxpayer could challenge the validity
of the mill levy arguing that the levy was invalid due to non-compliance with statutory
procedures. AS 29.45.010(c) provides that: “\[i\]f a tax is levied on real property or personal
property the tax must be assessed, levied, and collected as provided in this chapter.” This
means that in order to levy the tax a municipality must follow the requirements of Chapter
29.45.
Among those requirements is AS 29.45.240, which provides in part:
“(a) The power granted to a municipality to assess, levy and collect a property tax shall be
exercised by means of an ordinance. The rate of levy, the date of equalization, and the date
when taxes become delinquent shall be fixed by resolution.”
The language is pretty clear in saying that the rate of levy isset annually by resolution. If the
Assembly continues the practice of using the budget and appropriation ordinance to set the
levy then it is not complying with the terms of this statute. As such, a taxpayer could
challenge the levy arguing that the Borough did not follow the proper procedures. There may
also be a concern as to whether the Borough is setting the date of equalization and date
when taxes become delinquent in compliance with AS 29.45.240(a).
While such a challenge may not be successful, whether to assume that risk should be an
informed decision. It is not a clear cut case, and there is a substantial likelihood that we
Kodiak Island Borough
Page 8 of 47
Mill Levy Ordinance
AGENDA ITEM #2.b.
KODIAK ISLAND BOROUGH
STAFF REPORT
OCTOBER 3, 2019
ASSEMBLY REGULAR MEETING
would be able to defend against a challenge asserting that setting the rate of property tax levy
by ordinance invalidates the tax.
AS 29.45.240 sets out tax procedures. As a procedural statute a court would look at whether
this use is mandatory or directory.
"Whether a party must strictly comply with a procedural rule, regulation, or statute turns on
whether the language of the law is mandatory or directory. If a statute is mandatory, strict
compliance is required; if it is directory, substantial compliance is acceptable absent
significant prejudice to the other party. A statute is considered directory if (1) its wording is
affirmative rather than prohibitive; (2) the legislative intent was to create "guidelines for the
orderly conduct of public business"; and (3) "serious, practical consequences" would result if it
were considered mandatory."
South Anchorage Concerned Coalition, Inc. v. Municipality of Anchorage Bd. of
Adjustment, 172 P.3d 768, 771-772 ( Alaska 2007)
In the context of the mill levy, in Yakutat v. Ryman, 654 P. 2d 785 (Alaska 1982) the Alaska
Supreme Court held that a taxing procedure like setting the mill levy was directory, and
substantial compliance would be sufficient. Thus, the statute calls for a resolution, but if we
do it by an ordinance which substantially complies with the statue I believe a court would
uphold that the levy against a challenge.
A related consideration is the consistency in practice with the language of the code. If we do
not follow the code language a taxpayer could challenge the property tax levy arguing that it
was not done in compliance with the code. Where the code irreconcilably conflicts with the
statutes we can defend that action arguing that the conflicting code provision is preempted,
but the better course is to have the code, statute and practice all consistent.
I feel responsible to recommend that we bring the code, and the practice, in line with the
statute, and to identify the risk should we not do so. However, the decision of whether to do
so is up to the policy makers.
Discussion:
From a staff perspective, we see several options: Continue with the existing practice, modify
the code to provide for the two hearings, but use a resolution to comply with state law, or
lastly comply with state law. Pragmatically, any of these courses ofaction are relatively
simply to carry out, the concern here is to make sure that the intent of the Assembly on this
policy issue is captured and implemented.
ALTERNATIVES:
Keep codes that conflict with codes for the State of Alaska.
Kodiak Island Borough
Page 9 of 47
Mill Levy Ordinance
AGENDA ITEM #2.b.
KODIAK ISLAND BOROUGH
STAFF REPORT
OCTOBER 3, 2019
ASSEMBLY REGULAR MEETING
FISCAL IMPACT:
NA
OTHER INFORMATION:
Kodiak Island Borough
Page 10 of 47
Mill Levy Ordinance
AGENDA ITEM #2.b.
2 Introduced by:Borough Manager
3 Drafted by:Finance Director
4 Introduced on:
5 Public Hearing Date:
6 Adopted on:
7
8 KODIAK ISLAND BOROUGH
9 ORDINANCENO. FY2020-08
:
21 AN ORDINANCEOF THE ASSEMBLY OF THE KODIAK ISLANDBOROUGHAMENDING
22 KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE
23 CHAPTER 3.25APPROPRIATION AND LEVY SECTION 3.25.010ORDINACE ENACTMENT,
24 AND SECTION 3.25.020TAX LEVY FORM, AND PROVIDING FOR AN EFFECTIVE DATE
25
26 WHEREAS,AS 29.45.240(a) requires that an ordinance be used to levy the taxes; and
27
28 WHEREAS,AS 29.45.240(a) provides that the rate of levy, date of equalization and date when
29 taxes become delinquent shall be fixed by resolution; and
2:
31 WHEREAS,AS 29.45.240(b) requires that the levy be set by June 15, and the bills be sent out
32 by July 1; and
33
34 WHEREAS,The current provisions in Kodiak Island Borough Code 3.25.010call for an annual
35 appropriation and tax levy ordinance. The Assembly finds that the process for levying taxes and
36 setting the annual mill rate would be more consistent with AS 29.45.240 if the process in the
37 Kodiak Island Borough Code were amended to mirror the process in AS 29.45.240.
38
39
3:NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
41 BOROUGH THAT:
42
43 Section 1:This ordinance is of permanent nature and shall become a part of the Kodiak Island
44 Borough Code of Ordinances.
45
46 Section 2:That section 3.25.010 of the Kodiak Island Borough Code of Ordinances is amended
47 to read as follows:
48
49 3.25.010Ordinance Enactment.
4:
51 The assembly shall enact anbudget and appropriation and tax levyordinance appropriating
52 funds for the expenses and liabilities of the borough each year and levying a tax to defray all
53 expenses and liabilities of the borough for the purposes as specified against all taxable property
54 in the borough each year.
55
56
Kodiak Island Borough, AlaskaOrdinance No. FY2020-08
Deletion –Red, StrikeoutPage 1of 2
Page 11 of 47
Insertion –Bold, Blue, UnderlinedVersion 1
Mill Levy Ordinance
AGENDA ITEM #2.b.
57 Section 3:That section 3.25.020 of the Kodiak Island Borough Code of Ordinances is amended
58 to read as follows:
59 3.25.020 Tax levy form.
5:A. Levy.A tax for the above sums of money, or as much thereof as may be authorized by law,to
61 defray all expenses and liabilities of the borough be and the sameis hereby levied for the
62 purposes as specifiedagainst all taxable property in the borough.Inaccordance with AS
63 29.45.240(a),the rate of levy shall be determined annually as provided in subsection B of
64 this section. for the fiscal year commencing on the first day of July, (year), and ending on the
65 thirtieth day of June, (year).
66 B. Rate. The rate of levy, the date of equalization, and the date when taxes become
67 delinquent shall be fixedby resolution. The rate shall be determined annually before June
68 15. Prior to adoption, the resolution setting the rate of levy shall be introduced and set for
69 a public hearing at a subsequent meeting following the procedures in KIBC 2.30.070(B)for
6:enactment of an ordinance.
71
72
73 Effective Date:This ordinance takes effect upon adoption.
74
75 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
76 THIS __________ DAY OF _______________,2019.
77
78 KODIAK ISLAND BOROUGHATTEST:
79
7:
81______________________________________________________
82 Daniel A. Rohrer,MayorTara Welinsky,Clerk
83
84 VOTES:
85 Ayes:
86 Noes:
Kodiak Island Borough, AlaskaOrdinance No. FY2020-08
Deletion –Red, StrikeoutPage 2of 2
Page 12 of 47
Insertion –Bold, Blue, UnderlinedVersion 1
Mill Levy Ordinance
AGENDA ITEM #2.c.
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Page 13 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Photo: Sharatin Bay/ Three Pillar Point terminus of Anton
Larsen Bay ATV Trail.
Photo: Anton Larsen Bay.
Photo: Anton Larsen Bay ATV Trail, note bridge and geoblock
matting installed by Kodiak residents.
Photo: Anton Larsen Bay boat launch parking.
Page 14 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Photo: Ridgeline and lake between Anton Larsen Bay and
Sharatin Bay. Sharatin Bay is in the background.
Photo: Anton Larsen Bay road, head of Anton Larsen Bay.
The Anton Larsen Bay road provides access to the property
from multiple trail heads, ATV and hiking trails, and boat
launches.
Photo: Sharatin Mountain Trail from Anton Larsen Bay.
Photo: Coastal forest on the subject property.
Page 15 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Photo: Anton Larsen Bay.
Photo: Sharatin Bay.
Photo: Anton Larsen Bay.
Photo: Sharatin Bay 16’x20’ public use cabin.
Photo: Recently upgraded boat launch in Anton Larsen Bay.
Page 16 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Photo: Sharatin Bay
Photo: Sharatin Bay
Page 17 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Photo: Sharatin Bay
Photo: Sharatin Bay
Page 18 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Page 19 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Proposal
Bay
Director
4995
-
Sharatin
278
-
907
Great Land Trust Great Land Trust
Bay and
dmitchell@greatlandtrust.org
David Mitchell, Conservation
of life and economic health of Alaskans
and stewarding lands and waters essential to the quality
Anton Larsen
Conserving
Page 20 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Page 21 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Long Island
Termination Point
Partnership with Kodiak Island Borough
Partnership with Kodiak Island Borough
Page 22 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Page 23 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Oil Spill
Exxon Valdez
Lower Kenai River Projects
Page 24 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Page 25 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
information
acres owned by Ouzinkie Native
Property
Approximately 23,000 Corporation
•
Page 26 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
information
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
2,000
Property
Authority
Approximately 23,000 CorporationApproximately Health Trust
••
Page 27 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
for species impacted by
information
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
Spill
2,000
Property
Authority
high priority habitat
Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil
•••
Page 28 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
, fishing, hiking, wildlife
for species impacted by
information
hunting
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
–
Spill
2,000
Property
Authority
high priority habitat
Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewing
••••
Page 29 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
trailheads
, fishing, hiking, wildlife
for species impacted by
information
hunting
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
–
Spill
2,000
Property
Authority
high priority habitat
Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails,
ATV Trail, rental cabin,
•••••
Page 30 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
trailheads
land
, fishing, hiking, wildlife
for species impacted by
information
hunting
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
–
Spill
2,000
Property
Authority
high priority habitat
Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails,
ATV Trail, rental cabin, Boat launch is on existing state
••••••
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
impacted
trailheads
land
, fishing, hiking, wildlife
for species impacted by
not be
will
information
hunting
acres owned by Ouzinkie Native
acres owned by the Alaska Mental
–
Spill
2,000
Property
Authority
high priority habitat
Approximately 23,000 CorporationApproximately Health Trust Land has the Exxon Valdez Oil The property receives a high amount of recreational use from the community viewingHiking trails,
ATV Trail, rental cabin, Boat launch is on existing state Proposed road extension
•••••••
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Exxon Valdez Oil Spill Trustee Council
request to
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019
Funding, Ownership and Property Management
•
Page 33 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Resources
Exxon Valdez Oil Spill Trustee Council
request to
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural
Funding, Ownership and Property Management
••
Page 34 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Parks
Resources
Exxon Valdez Oil Spill Trustee Council
request to
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State
Funding, Ownership and Property Management
•••
Page 35 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Parks
Resources
Exxon Valdez Oil Spill Trustee Council
request to
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State
BLM will hold a conservation Easement restricting subdivision, development and certain activities on the property
Funding, Ownership and Property Management
••••
Page 36 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Parks
Resources
Exxon Valdez Oil Spill Trustee Council
request to
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State
BLM will hold a conservation Easement restricting subdivision, development and certain activities on the propertyUSFWS interested in an alternative scenario that transfers 65 acres
of islands to the Alaska Maritime National Wildlife Refuge with a CE held by the State of Alaska DNR
Funding, Ownership and Property Management
•••••
Page 37 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
Parks
Resources
Exxon Valdez Oil Spill Trustee Council
request to
Ouzinkie Native CorporationAlaska Mental Health Trust AuthorityState of Alaska DNRUSDOI Bureau of Land Management
••••
Funding (EVOSTC) will be considered at their annual meeting October 11, 2019Land will be transferred to the State of Alaska Department of Natural Land will be managed by Alaska State
BLM will hold a conservation Easement restricting subdivision, development and certain activities on the propertyUSFWS interested in an alternative scenario that transfers 65 acres
of islands to the Alaska Maritime National Wildlife Refuge with a CE held by the State of Alaska DNRProject is in its initial stages and subject to EVOSTC funding approval and agreement
by all parties:
Funding, Ownership and Property Management
••••••
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
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Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
AGENDA ITEM #2.c.
meeting.
?
Questions
Request for consideration:
this project at the October 3, 2019 Assembly
from Kodiak Island Borough in support of the funding request for
Letter
Page 47 of 47
Antone Larson Bay/Sharatin Bay Project Update - Great Lands Trust
Meeting Type-P, Date: . ...........
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