08/20/2020 Regular MeetingKODIAK ISLAND BOROUGH
Assembly Regular Meeting
August 20, 2020
A regular meeting of the Kodiak Island Borough Assembly was held on August 20, 2020 in the
Assembly Chambers of the Kodiak Island Borough, 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 Roberts led the Pledge
of Allegiance.
Present were Mayor Bill Roberts, Assembly members Scott Arndt, Julie Kavanaugh, Andy Schroeder,
Rebecca Skinner, Duane Dvorak, and James Turner. Also present were Borough Manager Michael
Powers, Borough Clerk Alise Rice, and Temporary Clerk Marice Ashford.
DVORAK moved to excuse Assembly member Symmons who was absent due to work related matter
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA AND CONSENT AGENDA
All items listed with an asterisk (*) are considered to be routine and non -controversial by the Assembly.
KAVANAUGH moved to approve the agenda and consent agenda.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
None.
CITIZENS' COMMENTS
The following spoke under citizens' comments:
• Vilma Vining
• Rebecca Ligtenburg
• Charles Barber
• Jacelyn Keys
• Ker Hall
• Shay long
• Aimee Williams
• Paul Lumsden
• Erin Welty
AWARDS AND PRESENTATIONS
• Longevity Awards- Presented by Michael Powers, Borough Manager.
15 Years, Jessica Basuel, Interpretive Spec/Receptionist
15 Years, Dria Bray -Holloway, General Accountant
15 Years, Tom Slagle, Baler Operator II
30 Years, Sharon Blakeslee, Programmer/Analyst
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• FY2020 4th Quarter Budget vs Actual Presentation — Presented by Dora Cross, Finance
Director.
COMMITTEE REPORTS
Assembly Member Dvorak gave an update on the Board of Education expressed gratitude for their
hard work on the back to school plans. Reminded everyone that the schools are going to need
extra substitute teachers this year.
Assembly Member Kavanaugh gave an update on the Consolidation Committee and mentioned
their concerns about the cost/funding for public safety.
PUBLIC HEARING
1. Ordinance No. FY2021-01C Amending Ordinance No. FY2021-01, Fiscal Year 2021
Budget, By Amending Budgets To Account For Federal CARES (Coronavirus Aid,
Relief, And Economic Security) Act Revenues That Are Over Budget, Providing For
Additional Expenditures And Moving Funds Between Projects.
DVORAK moved to adopt Ordinance No. FY2021-01C.
The Borough is eligible to receive up to $5,792,500.90 in Federal CARES Act (Coronavirus Aid,
Relief, and Economic Security) grant funds via the State of Alaska.
The funding occurs in three payments:
• $4,836,892.90 (83.5% of total amount) received on 06/26/2020
• $477,804.00 (8.25% of total amount) will be received after 80% ($3,869,514) of 1 st payment
is expended
• $477,804.00 (8.25% of total amount) will be received after 80% ($382,243) of 2nd payment
is expended
Any money not expended prior to December 31, 2020 must to returned to the State of Alaska.
Although Resolution No. FY2021-07 created an initial, broad spending plan for the total $5.7 million
of CARES Act funding, this ordinance directs staff how to expend the first payment amount of
$4,836,892.90.
• $1.57 million is to be paid to the Kodiak Island Borough School district
• $1.57 million qualifies as expended (once a signed recipient agreement has
been received)
$1.2 million is to be put in a Borough project budget to reimburse the Borough
• As of 7/17/2020 $216,000 qualifies as expended
$500,000 is to be put in the Borough's non-profit budget for future grants
• As of 7/17/2020 $0.00 qualifies as expended
$1,000,000 is be put in a Borough project budget for the KEDC (Kodiak Economic
Development Corporation) grant program
• As of 7/17/2020 $0.00 qualifies as expended
The above budgeted expenditures total $4,270,000.
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The above actual expenditures that would quality as expended toward the $3,869,514 needed to
to receive the second payment (assuming the ordinance passes as is) total $1,786,000:
• $1.57 Million to KIBSD
• $216,000 to KIB (as of 7/1712020)
• $0 Non -Profits (until the recipient distributions are made)
• $0 KEDC (until the recipient distributions are made)
Mayor Roberts opened the public hearing.
Hearing none and seeing none.
Mayor Roberts closed the public hearing.
Clerk's Note: Assembly member Turnerjoined the meeting.
DVORAK moved to amend line 56 section 4 from $500,000 to $1 M and reduce line 61 section 6
from $1,522,500.90 down to $1,022,500.90.
ROLL CALL VOTE ON THE MOTION TO AMEND LINE 56 SECTION 4 AND LINE 61 SECTION
6 CARRIED FOUR TO THREE: Dvorak, Kavanaugh, and Schroeder (AYES); Arndt, Skinner, and
Turner (NOES). Mayor Roberts broke the tie and voted in favor of the motion.
SKINNER moved to amend the amendment, to replace the zeroing out to a $500,000 reduction.
ROLL CALL VOTE ON THE MOTION TO AMEND THE AMENDMENT CARRIED FOUR TO
THREE: Dvorak, Kavanaugh, and Schroeder (AYES); Arndt, Skinner, and Turner (NOES). Mayor
Roberts broke the tie and voted in favor of the motion.
ROLL CALL VOTE ON THE MOTION AS AMENDED CARRIED UNANIMOUSLY: Dvorak,
Kavanaugh, Schroeder, Skinner, Turner, and Arndt.
2. Ordinance No. FY2020-01D 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.
ARDNT moved to adopt Ordinance No. FY2020-01 D.
This ordinance details changes and accounts for additional funding requests that have occurred
during the current fiscal year for items or circumstances that were not known or expected during
the initial creation of the FY2020 Budget.
Funds
Funds are accounts established to collect money that must be used for a specific purpose. The
following funds are being changed with this budget amendment.
Fund 100 General Fund :
Department 125 Information Technology ($100,000 to Capital Project Fund - CAMA/Collection
Software Upgrade)
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Fund 220 Building & Grounds:
Department 237 Chiniak School (transfer $75,000 to Capital Project Fund - Chiniak School Water
System)
Fund 555 - Kodiak Fisheries Research Center (transfer $110,000 to Capital Projects Fund - Fire
Alarm Replacement & Upgrade)
Projects:
Since most projects cover multiple years, the borough does not create annual budgets for them.
Instead, each project budget is created individually when the project itself is created. Throughout
the life of a project, funds may be moved into or out of the project due to additions and
subtractions to changes to the scope work, expenses that come in over/under original estimates,
or funds that remain at the completion of the project. The projects being amended by this budget
amendment are:
Fund 415 - CAMA/Collection Software Upgrade (increasing by $100,000)
Fund 426 - KFRC Fire Alarm Replacement & Upgrade (increasing by $110,000)
Fund 450/455 - Chiniak School Water System (increase by $75,000)
Fund 495/497 - PKIMC redirect funds for the Fire Suppression project and Roof project into new
Fire Alarm Replacement and Upgrade project (net change $0)
Mayor Roberts opened the public hearing.
Hearing none and seeing none.
Mayor Roberts closed the public hearing and reconvened the regular meeting.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Turner, Arndt, Dvorak,
Kavanaugh, and Schroeder.
3. Ordinance No. FY2021-15 Rezoning Lots 1 And 2, Isthmus Bay From RR2 — Rural
Residential Two District To C — Conservation District (P&Z Case No. 20-007).
KAVANAUGH moved to adopt Ordinance No. FY2021-15 Rezoning Lots 1 and 2, Isthmus Bay with
a condition of approval requiring the lot line between Lots 1 and 2 to be modified so that the rezoned
lots meet the C-Conservation District 5 acre minimum lot area requirement before the rezone will
become effective.
The intent of the applicant is to establish a lodge -style business occupation on the subject lots. The
business would consist of small vacation homes, day -use areas and support facilities such as a
spa and recreation/athletic facilities. In addition to the lots described in this application, the
applicant owns the two lots north of lot 2 and plans to use all four lots for the business. Isthmus
Bay Subdivision Lots 1 & 2 are currently zoned RR2 (Rural Residential Two). Lodges are
not permitted under RR2 (Rural Residential Two) which prohibits lodges and lodge -style
businesses. Lodges and lodge -style business are permitted in C (Conservation) zoning districts.
The rezone of Isthmus Bay Subdivision Lots 1 & 2 from RR2 (Rural Residential Two) to C
(Conservation) would allow the applicant to develop and operate a business that is consistent with
the development goals outlined in the 2008 Kodiak Island Borough Comprehensive Plan Update
and the 1987 Chiniak Comprehensive Plan.
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The rural residential designation of the Comprehensive Plan provides for large lots and residential
development at rural densities. Businesses should be permitted if they can ensure that the rural
character of the area is maintained.
The RR2 (Rural Residential Two) zoning district requires lots to have a minimum area of 2 acres,
C (Conservation) district requires lots to have a minimum area of 5 acres. The minimum area
required for C (Conservation) zoned lands is greater than that required by RR2 (Rural Residential
Two) zoning, so the minimum lot area requirement of the requested exceed that of the current
zoning requirement.
It should be noted that Lot 1 does not meet the C (Conservation) zoning district 5-acre minimum
area requirement, but the combined total area of the two lots is 10.39 acres. If the rezone is
approved, the applicant would need to modify the lot lines to come into compliance. Rural
residential densities would be maintained with the rezone in that RR2 (Rural Residential Two) and
C (Conservation) zoning districts only permit single-family dwellings.
However, a lodge -style business would increase the transient occupancy with the planned
development of small vacation homes, day -use areas and support facilities. Lodging with provisions
for no more than six clients are permitted in the C (Conservation) zoning district. More with a
conditional use permit, if approved. The increased occupancy would increase the demand on onsite
potable water supplies and septic disposal.
Mayor Roberts opened the public hearing.
CITIZENS' COMMENTS
The following spoke under citizens' comments:
• Gerald Friend
Mayor Roberts closed the public hearing and reconvened the regular meeting.
ROLL CALL VOTE ON THE MOTION CARRIED FIVE TO ONE: Turner, Arndt, Kavanaugh,
Schroeder, and Skinner (AYES); Dvorak (NO).
Mayor Roberts recessed the regular meeting at 8:10 p.m.
Mayor Roberts reconvened the regular meeting at 8:20 p.m.
BOROUGH MANAGER'S REPORT
Manager Powers reported on the following:
Met with Interim CEO, Don Hanna to discuss various matters related to Providence Kodiak
Island Medical Center providing care in Kodiak.
Conference Calls with Alaska Municipal League about states response regarding medical
care.
Still have not received anything definitive from Washington DC regarding COVID-19
monies -out and there does not appear to be an immediate momentum to "negotiate' at the
Federal level but could change overnight.
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• All schools returned to normal operations as of August 21, 2020 and will open for in person
curriculum on September 8, 2020. Testing tent will be at Bayside Fire.
• Significant discussion regarding COVID-19 cases. community transmission vs. travel
related cases, off island treatment, and slow/steady case count for the road system/villages.
• Completed first fuel leak remediation at Providence.
• Met with ADEC to discuss the various problems with the Landfill including the Leachate
Treatment Plant and reviewed previous violations, physical aspects of improvements,
funding for additional improvements and the various (4) potential means of addressing our
leachate problems.
MESSAGES FROM THE BOROUGH MAYOR
Mayor Roberts announced that he will be meeting with the City of Kodiak on Wednesday, August 26,
to discuss joint expenses of COVID-19.
UNFINISHED BUSINESS
Ordinance No. FY2021-12 Of the Assembly Of The Kodiak Island Borough
Amending KIBC Title 3 Revenue And Finance, Chapter 3.80 Excise Tax On
Cigarettes And Tobacco Products Section .020 Definitions and Section .030 Excise
Tax On Cigarettes And Tobacco Products.
Clerk's Note: "Motion is on the floor `to postpone Ordinance No. FY2021-12 to the next regular
meeting of the Assembly on August 20, 2020. "'
ARNDT moved to postpone to public hearing at the regular meeting of the assembly on
September 17, 2020.
ORIGINAL
This ordinance was sponsored by Assembly member Symmons during the regular meeting of
June 18, 2020.
The request was to increase the tobacco excise tax for products brought into the borough for
distribution or sale as follows:
• cigarettes from $0.05 to $0.075 per cigarette; and
• other tobacco products from 25% to 37.5% of wholesale price
VERSION 2
During the July 16th regular assembly meeting, staff was directed to include the taxation of
vaping into our code.
During the research process, staff collected the following information:
Tobacco Excise Tax Rates for:
• Juneau Borough - $3/pack and 45% on other tobacco products
• Matanuska- Susitna Borough - 110 mils/cigarette and 55% on other tobacco products
• Anchorage - 124.6 mils/cigarette and 55% on other tobacco products
• Fairbanks - 8% on all tobacco products
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This item was introduced on July 16, 2020 and postponed to the next regular meeting on August
20, 2020.
ROLL CALL VOTE ON THE MOTION TO POSTPONE CARRIED UNANIMOUSLY: Arndt,
Dvorak, Kavanaugh, Schroeder, Skinner, and Turner.
NEW BUSINESS
Contracts
None.
Resolutions
1. Resolution No. FY2021-15 Establishing Criteria For Nonprofit CARES ACT Funds.
SKINNER moved to adopt Resolution No. FY2021-15.
CARES funding was approved by the Federal Government to assist States and Local Jurisdictions
with dealing with the COVID-19 pandemic. The State of Alaska has prepared a process that the
Kodiak Island Borough has engaged to receive and use CARES Act funds in accordance with
Federal Law and policy guidance by the Department of Treasury.
Coronavirus Aid, Relief Economic and Security (CARES) Act funds for Nonprofits will be allocated
in the following manner:
Criteria for Initial Selection:
1. Costs that are necessary expenditures incurred due to COVID-19 public health
emergency.
2. Costs that were not accounted for in the budget most recently approved; as of March 27,
2020.
3. Costs were/will be incurred between March 1, 2020 and December 30, 2020.
After Initial Selection, the Remaining Applicants Be Requested to Provide The
Following:
1. If the organization is a 501-3C
2. If it is registered with the State of Alaska
3. A description of where and to whom the services are offered (if not already in the request)
4 A copy of the current and most recent past budget
5. If the organization has received any other financial aid related to the COVID-19 crisis. If
yes, explain the source, amount, and application of funds.
Furthermore:
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August 20, 2020
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An administration cost of up to 5% is allowed.
An applicant is ineligible if it does not otherwise meet the CARES Act eligibility criteria.
A full report of costs and expenses will be due March 30, 2021. (Adjustments may be made
to this deadline if there are corresponding changes to the CARES Act.)
ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Dvorak, Kavanaugh,
Schroeder, Skinner, Turner, and Arndt.
Ordinances for Introduction
None.
Other Items
1. Assembly Letter Voicing Opposition to the Proposed Aquatic Farmsite Lease for
Trident Seafoods Corporation.
DVORAK moved to approve Assembly Letter Voicing Opposition to the Proposed Aquatic
Farmsite Lease for Trident Seafoods Corporation.
TURNER moved to be excused based on potential conflict of interest.
ROLL CALL VOTE ON MOTION CARRIED THREE TO TWO: Skinner, Dvorak, and Schroeder
(AYES); Arndt and Kavanaugh (NOES). Turner (Excused).
Clerks Note: Clerk ruled the vote incorrectly the motion failed. For a motion to carry it must
have a minimum of 4 votes. Votes from excused members do not count in the vote tally, the
Clerk incorrectly tallied the vote to the prevailing side.
KAVANAUGH requested to be excused based on potential conflict of interest.
Mayor Roberts ruled in favor of the request and excused Kavanaugh from voting.
ROLL CALL VOTE ON MAIN MOTION CARRIED FIVE TO ONE: Schroeder, Skinner, and
Dvorak (AYES); Arndt (NO) Turner and Kavanaugh (Excused)
Clerk's Note: Clerk ruled the vote incorrectly the motion failed. Votes from excused members
do not count in the vote tally. Votes were tallied on the incorrect side.
KIBC 2.30.070(F) Voting.
1. All assembly members present shall vote unless the assembly for special reason permits a member to abstain,
except no assembly member may vote on a question in which he has a substantial financial interest. All motions
to excuse a member shall be made before the call of"ayes" and "noes" is commenced, and any member requesting
to be excused from voting may make a brief statement of the reasons for making such a request, and the vote
shall be taken without further debate.
2. If a member refuses to vote, the clerk shall record a vote for the prevailing side. The "prevailing side" is the side
that carried the question and is described as follows:
a. If the question passed, having received the affirmative votes of the quorum, that is the prevailing side; or
b. If the question failed, having not received the affirmative votes of the quorum, that is the prevailing side.
Kodiak Island Borough
August 20, 2020
Assembly Regular Meeting Minutes
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VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
The meeting adjourned at 9:25 p.m.
KODIAK ISLAND DUG
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Kodiak Island Borough
August 20, 2020
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Assembly Regular Meeting Minutes
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CITIZENS' COMMENTS
None.
ASSEMBLY MEMBERS' COMMENTS
• Assembly Member Schroeder expressed gratitude to the Assembly for excusing his
absence at the previous meeting and mentioned he may be absent in September.
• Assembly Member Skinner had no comment.
• Assembly Member Kavanaugh had no comment.
• Assembly Member Turner thanked the Assembly for excusing his absences due to his
heavy workload at this time.
• Assembly Member Arndt had no comment.
• Assembly Member Dvorak had no comment.
ANNOUNCEMENTS
The next Work Session of the Assembly is scheduled for Thursday August 27, 2020 at 6:30
p.m. in the School District Conference Room.
The next Regular Meeting of the Assembly is scheduled for Thursday, September 3, 2020 at
6:30 p.m. in the Borough Chambers.
EXECUTIVE SESSION
1. Solid Waste Contract - Conference with Legal Counsel.
SKINNER moved to convene into executive session under the authority of KIBC 2.30.030
(F)(1)(a) to discuss Solid Waste Contract No. FY2019-25, a matter in which immediate public
knowledge of could affect adversely the finances of the Borough and receive legal advice from
the Borough's counsel.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Skinner, Turner, Arndt, Dvorak,
Kavanaugh, and Schroeder.
SKINNER moved to invite the Mayor, Assembly, Borough Manager, Michael Powers,
Engineering and Facilities Director, Dave Conrad, Project Manager, Matt Gandel, Borough
Clerk, Alise Rice, and Borough Attorney, Scott Brant -Erickson via teleconference, into Executive
Session.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
After the vote, Mayor Roberts recessed the regular meeting and convened into executive
session.
Upon returning from the executive session, Mayor Roberts reconvened the regular meeting and
gave direction to staff and Borough Attorney to draft a letter addressing concerns about Solid
Waste Contract No. FY2019-25.
ADJOURNMENT
ARNDT moved to adjourn the meeting.
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