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04/18/2021 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting Teleconference February 4, 2021 A regular meeting of the Kodiak Island Borough Assembly was held on February 4, 2021 via teleconference. 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 via teleconference was Mayor Bill Roberts as were Assembly members Scott Arndt, Duane Dvorak, Geoffrey Smith, Dennis Symmons, James Turner, and Aimee Williams. Also present were Borough Manager Michael Powers, Borough Clerk Alise Rice, and Assistant Clerk Mitchell Davidson. ATTENDANCE BY ROLL CALL: Arndt, Dvorak, Smith, Symmons, Turner, and Williams. WILLIAMS moved to excuse Assembly member Kavanaugh who was temporarily absent due to technical difficulties. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA DVORAK moved to approve the agenda. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Arndt, Dvorak, Symmons, Turner, and Williams. APPROVAL OF MINUTES • None CITIZENS' COMMENTS The following spoke under citizens comments: • Dan Rohrer • Sam Rohrer • Kurt Froening AWARDS AND PRESENTATIONS • None COMMITTEE REPORTS: • Assembly member Williams reported on the Solid Waste Advisory Board. Clerk's Note: Assembly member Kavanaugh joined the meeting at 6:44 PM. Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 1 of 9 PUBLIC HEARING 1. Ordinance No. FY2021-01G Amending Ordinance No. FY2021-01, FY2021 Budget, Providing For Additional Expenditures. DVORAK moved to adopt Ordinance No. 2021-01 G. During the Assembly's January 7, 2021 regular meeting, it was requested that staff prepare a budget amendment to match the grant funds Womens Bay Community Council received from the Kodiak Community Foundation for playground improvements to the Sargent Creek Park. Mayor Roberts opened the public hearing. Seeing and hearing none, Mayor Roberts closed the public hearing and reconvened the regular meeting. TURNER moved to amend line 25 to "take the money out of the parks and recreation budget, to the fund balance to make a nonprofit distribution of $1,000 to Womens Bay Community Council." ROLL CALL VOTE ON THE AMENDMENT CARRIED UNANIMOUSLY: Smith, Symmons, Turner, Williams, Arndt, Dvorak and Kavanaugh. ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Dvorak, Kavanaugh, Smith, Symmons, Turner, Williams, and Arndt. BOROUGH MANAGER'S REPORT • Covid19 ESC met and discussed the Pandemic Response plan, the various conditions, levels, and responses to try to better tune our situation on Kodiak. Discussed emergency declaration, the State situation, upcoming vaccinations doses, saturation of the current eligible demographics for vaccinations, and related issues. • Met with AML/State-The State Emergency Declaration by the Governor ends February 14. The Legislature must act since they are in session but will not do so before the 14th. At the state level, that means everything becomes "requests" not "orders". At the local level our declaration continues, and we may need to modify it once the State's ceases. • Stimulus III Was in contact with the Borough's lobbyist and is following the "budget then reconciliation" path the stimulus proposal is taking. As was the case with previous stimulus legislation, various components may or may not survive. Estimated timetable for delivery to the President is mid -March. • Held meetings with staff to review departmental needs, budgets, and staffing. Preparing background budget information for budget books, timelines, related and necessary documents. Received preliminary request for funding from the School District. • Met with staff to review various capital projects, timelines, process, and related issues. • Met with providence CEO, Maintenance Supervisor and Financial Officer for the first of our monthly meetings for facility issues at the Hospital and Long -Term Care. Provided history of the relationship, recent issues, and status of capital projects. Spent a considerable amount of time discussing how to improve our working relationship and responses to "health care" audits and inspections vis a vis our public process as well as tenant driven improvements. Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 2 of 9 • Discussed various issues related to solid waste: Contract Amendment with Alaska Waste, improvements around the landfill site (rock development, equipment/garage, LTP issues and resolutions); roll off locations and policing of same. • Attended Agenda Setting for the Joint Borough -City work session and Agenda Setting for the Borough. MESSAGES FROM THE BOROUGH MAYOR • Reminded Assembly members to complete the Borough Clerk's 6-month evaluation forms. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS • None 1. Amendment No. 1 Amending Contract No. FY2019-25 Residential And Commercial Solid Waste Collection And Recycling Services. Clerk's Note: the motions on the floor are as follows: amend the amendment to read: move to dissolve the contract; amend the main motion to read: move to authorize the Borough Manager to execute Amendment No. 1, Amending Contract No. FY2019-25 with Waste Connections of Alaska, inc., dba Alaska Waste for residential and commercial solid waste collection and recycling services; move to approve Amendment No. 1 Amending Contract No. FY2019-25. This item was postponed from the Regular Meeting of December 3, 2020, and introduced at the December 17, 2020 Regular Meeting. At the meeting of the 17t" a motion to dissolve the contract was made. Amendment No. 1 was then postponed to the January 7th Regular Meeting. At the meeting of the 7th this item was postponed to the February 4th Regular Meeting. Update for February 4, 2021, Regular Meeting: Following postponement of this agenda item at the December 17, 2020, Regular Meeting, the Assembly created a Solid Waste Contract Subcommittee to meet with staff and work out the details of the amendment. The Subcommittee held four meetings between December 2020 and January 2021, and the attached amendment was approved by the Subcommittee, and the Assembly voted to release it to the public on January 21, 2021. The biggest changes from previous versions of the amendment and the version approved by the Subcommittee are the rates for residential and commercial customers. Previous Agenda Information from December 3, 2020, Regular Meeting: On May 2, 2019, the Assembly approved a contract with Waste Connections of Alaska, Inc,. dba Alaska Waste for solid waste collection services from FY2021 to FY2027. Alaska Waste began collecting solid waste under the new contract on July 1, 2020. Following commencement of the contract it soon became clear that there were some inconsistencies, contradictions, and ambiguities that needed to be clarified for proper administration of the contract. Over the last several months KIB staff has had numerous meetings with Alaska Waste to negotiate a resolution to these issues, and has presented updates to the Assembly at several executive sessions. The attached amendment is the result of those meetings and discussions. The major changes in the amendment include creation and description of a roll cart rate for commercial customers, clarification of the clean-up fee charged to residential customers, and incorporation of the current rates for residential and commercial customers into the contract. Below is a detailed description of the changes included in each section of the attached amendment: Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 3 of 9 1. The original contract stated that those wishing to "self -haul" their solid waste would be charged at a rate commensurate to a 32, 64, or 96 gallon roll cart. Under the new contract the only available roll cart size is 95 gallons. This section of the amendment clarifies that those who "self -haul" will be charged either the residential or commercial roll cart rate, whichever is applicable. 2. This section includes a description of the commercial roll cart and the parameters for which a customer would be eligible for the commercial roll cart or required to have a larger dumpster. If requested, commercial customers will be provided one 95-gallon roll cart — if they require more capacity they will have to upgrade to a 2 yard dumpster (smallest size available). 3. This section fixes some incorrectly labeled sections of the original contract. 4. The rates in the original contract were those that were included in the Request for Proposal (RFP), however, the contract allows for rate adjustment at the beginning of each fiscal year. Following the formula in the contract Alaska Waste made those adjustments and began charging the updated rates on July 1, 2020. This section of the amendment will formalize those rates as part of the contract. (The calculation of the rate adjustment is shown below.) This updated table also adds the rate for commercial roll cart and pickup of additional solid waste that does not fit in a commercial roll cart. The commercial roll cart rate has been set at $65.37 per month ($14.00 more than the residential rate). 5. The original contract included a $5.00 fee for "residential roll -off or dumpster clean-up costs" but there was not good definition or description of who would be charged the fee or under what circumstances. After negotiation with Alaska Waste it was agreed that they will track the number of clean-ups required, charge $5.00 for every clean-up, then divide the total for a year by the total number of customers and and charge every customer the applicable fee. The fee that will be charged on January 1, 2021 is $4.83 per customer. 6. This section adds a fee of $40.44 per yard for pickup of additional waste that does not fit in a commercial dumpster. 7. Similar to section 4 of the amendment, this section includes the updated rates for commercial dumpster service. This table also replaces an incorrect table in the original contract that showed a rate for an every other week pickup. The every other week pickup is not an option for commercial customers. The minimum pickup is once per week. 8. Similar to section 4 of the amendment, this section includes the updated rates for roll -off service. 9. Similar to section 4 of the amendment, this section includes the updated rates for cardboard recycling service. 10. The original contract stated that the rate adjustment made each year would be in comparison to the Landfill Disposal Fee in effect in April 2018. All parties agree that this date was a holdover from a previous issuance of the RFP, and that October 2018 is a more appropriate date since those are the rates that were in affect when the proposals were received. 11. This section includes updated definitions for commercial roll cart, residential roll cart, and self -haul, to accurately reflect other changes included in the amendment. 12. The previous solid waste contract allowed for monthly rental charges and additional fees to provide lockbars for commercial dumpsters. The current contract does not allow these charges, yet Alaska Waste (who held the previous contract) continued to charge these after the new contract took Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 4 of 9 effect. This section of the amendment will clarify that those charges are not allowed, and that Alaska Waste has refunded those customers who were incorrectly charged. 13. The RFP required proposers to include a breakdown of one of the monthly dumpster rates. When Alaska Waste submitted their proposal the total rate was correct but they transposed some of the amounts on their breakdown (i.e. inserted the Disposal rate portion on the Collection and Administrative line). The correct breakdown is included in this amendment for incorporation into the contract. Residential Rate Adjustment: RFP Rate Adjustment July 1, 2020 Rate (Feb 2019) Disposal and Tonnage under Section 11.03(c)(4) $37.43 $1.22 $38.65 CPI under Section 11.03(c)(1) $9.94 $0.32 $10.26 PPI on fuel under Section 11.03(c)(2) $1.50 � ($0.11) $1.39 Fixed cost and profit under Section 11.03(c)(3)(5) $1.08 No Change $1.08 it TOTAL I�$49.95 � $51.37 The same methodology has been used in the adjustments to commercial dumpster and roll -off rates included in the amendment. DVORAK moved to postpone indefinitely the motion to terminate (to dissolve) the contract. ROLL CALL ON VOTE TO POSTPONE INDEFINITELY THE MOTION TERMINATE (TO DISSOLVE) TO THE CONTRACT FAILED FIVE TO TWO: Kavanaugh, Smith, Symmons, Turner, and Dvorak (NOES); Williams and Arndt (AYES). ROLL CALL VOTE ON THE MAIN MOTION TO TERMINATE (TO DISSOLVE) THE CONTRACT FAILED THREE TO FOUR: Turner, Arndt, and Kavanaugh (AYES); Symmons, Williams, Dvorak, and Smith (NOES). ARNDT moved to postpone to the next regular meeting of the Assembly of February 18t" , 2021. MOTION FAILED: No second. DVORAK moved to substitute the amendment to specify contract amendment version 2.3.2021 ROLL CALL VOTE ON THE MOTION TO POSTPONE FAILED THREE TO FOUR: Smith, Symmons and Arndt, (AYES); Dvorak, Kavanaugh, Turner, and Williams (NOES). ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED CARRIED FOUR TO THREE: Dvorak, Kavanaugh, Smith and Williams, (AYES); Arndt, Symmons, and Turner (NOES). Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 5 of 9 2. Release All Executive Session Confidential Information From Amendment No. 1 Amending Contract No. FY2019-25 Residential And Commercial Solid Waste Collection And Recycling Services To The Public. Clerk's Note: The motions on the floor are as follows: amend the motion to read: move to release the executive session documentation and the attorney's opinions on the Solid Waste Contract for FY2019-25 for release after the vote of the assembly on February 4th; move to release all executive session documents pertaining to the amendment to the Solid Waste Contract, including the attorney's cancelling the contract. Motion on the floor to release information was made after executive session on the January 21, 2021, regular meeting. ROLL CALL VOTE ON THE AMENDMENT FAILED TWO TO FIVE: Turner and Arndt (AYES); Kavanaugh, Smith, Symmons, Williams, and Dvorak (NOES). ROLL CALL VOTE ON THE MAIN MOTION FAILED TWO TO FIVE: Turner and Arndt (AYES); Smith, Symmons, Williams, Dvorak, and Kavanaugh (NOES). CONSIDERATION OF CALENDAR - NEW BUSINESS ® None CONTRACTS. 1. Change Order No. 12 Amending Contract No. FY2019-10 Architectural And Engineering Services Term Contract For Design For The Borough Building Boiler Room Upgrades Project. DVORAK moved to authorize the Borough Manager to execute Change Order No. 12 in an amount not to exceed $90,690. Kodiak Island Borough Code 3.30.100 Change Orders - Manager Authority states that a change order greater than five percent of approved contract amount or $50,000, whichever is lower, requires Assembly approval. This is a change order to the Borough's current term contract with Jensen Yorba Wall (JYW) to include design services for the Borough Building Boiler Room Upgrades project. The scope of work for the project will include replacing the boilers at the Borough Building and Maintenance Building, replacing the Borough Building generator with a new generator to serve both buildings. Also associated mechanical, electrical, and hazardous material abatement work. In March 2020 the Assembly approved change orders to complete 35% design for this project. That work is now complete, and this change order includes proceeding to 100% design, as well as bidding and construction administration services. The goal is to complete design and put the project out for bid in spring 2021 with construction to occur in fall 2021. Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 6 of 9 ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Symmons, Turner, Williams, Arndt, Dvorak, Kavanaugh, and Smith. RESOLUTIONS 1. Resolution No. FY2021-30 Requesting Senators Lisa Murkowski And Dan Sullivan, And Congressman Don Young To Take Actions Exempting Covid-19 Relief Funds From Federal Income Taxation. DVORAK moved to approve Resolution No. FY2021-30. ROLL CALL VOTE ON THE MOTION CARRIED FIVE TO TWO: Turner, Williams, Dvorak, Kavanaugh, and Smith (AYES); Arndt and Symmons (NOES). ORDINANCES FOR INTRODUCTION 1. Ordinance No. FY2021-28 Amending Kodiak Island Borough Code Of Ordinances Title 3 Revenue And Finance Chapter 3.25 Appropriation And Levy Section 3.25.030 Maximum Allowable Tax Revenues, Limiting Restrictions To General Fund Property Tax Revenues. SYMMONS moved to advance Ordinance No. FY2021-28 to public hearing at the next regular meeting of the assembly on February 18, 2021. At the request of the assembly, staff was asked to propose changes to the current maximum allowable tax revenue KIB code section 3.25.030. The purpose of the changes is to make the program less ambiguous, and easier to administer, while focusing on the objective of limiting property tax increases. When the initiative was first adopted there was some difficulty in sorting through the application of the maximum revenue limit as it might apply to non- areawide taxes such as service area taxes, and to excise taxes which are levied only upon certain user groups like transient occupancy taxes, tobacco taxes, marijuana taxes, and severance taxes. The initiative was ambiguous in relation to service areas. Additionally, some of the sponsors of the initiative indicated shortly after passage that the primary objective was areawide property taxes, not service area, excise, or severance taxes. For service areas, combining service areas in the same pool with areawide funds could adversely impact either or both. The portion of the community paying taxes for service areas is less than the whole, and if their ability to fund desired services were limited by actions of the whole Borough, including residents outside the service area, that could make it difficult to administer service area functions in on orderly manner. The revenue cap has been interpreted to be used to calculate the revenue limit for each service area separately to avoid this issue. However, service areas often have greater fluctuations in tax revenue demands from year to year due to smaller budgets and the magnitude of the impacts if there is a heavy snow year or fluctuation in state funds available. Accordingly, the revenue cap as applied to service areas does not achieve the primary objective of the initiative sponsors and can create unanticipated administrative issues. Accordingly, the ambiguity regarding service areas under the revenue limitation initiative can be resolved by excluding service area levies from the scope of the ordinance and focusing on areawide funds. Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 7 of 9 With respect to excise taxes such as transient occupancy tax or tobacco tax, those taxes are paid primarily by visitors or user groups and not by all residents in the borough. The pro statement in the voter pamphlet concerning the measure indicated that the concern which motivated the initiative was annual increases in property taxes. Other non -property taxes which are not paid by all residents need not be included to limit the increases available for property taxes. Further, if the maximum revenues combines property tax and other taxes in the same pool, a poor fish year or poor tourism year could shift the burden to property taxes to make up the difference. If the limit is only on property taxes then the rate of property taxes is held to only the natural increases or voter approved increases contemplated in the initiative. Taxes restricted by MATR: Tax Type Now Severance yes Excise yes Transient Accommodations yes Property yes - area wide yes - non -area wide Personal Property yes - area wide p y yes - non -area wide After no no no yes - area wide no - non -area wide yes - area wide no - non -area wide ROLL CALL VOTE ON THE MOTION CARRIED SIX TO ONE: Williams, Arndt, Dvorak, Smith, Symmons, and Turner (AYES); Kavanaugh (NO). OTHER ITEMS • None. CITIZENS' COMMENTS The following spoke under citizens' comments: • Dan Rohrer • Sam Rohrer ASSEMBLY MEMBER' COMMENTS • Assembly Member Kavanaugh reported on the North Pacific Fisheries Council and the recent Consolidation Committee meeting. The next Consolidation Committee meeting will be held on February 22, 2021. • Assembly Member Smith thanked the public for patience and reported on Covid-19. • Assembly Member Turner remarked on the importance of governmental transparency. • Assembly Member Dvorak reported on his efforts to secure laptops for Assembly member use. • Assembly Member Symmons thanked citizens for their comments. • Assembly Member Williams had no comment. • Assembly Member Arndt had no comment. Kodiak Island Borough Assembly Regular Meeting Minutes February 4, 2021 Page 8 of 9 ADJOURNMENT DVORAK moved to adjourn the meeting. VOICE VOTE ON ADJOURNMENT CARRIED UNANIMOUSLY. The meeting was adjourned at 8:54 p.m. KODIAK ISLAND BOROUGH AT ST: William Roberts, ayor Alise L: Rice, Borough Clerk Kodiak Island Borough February 4, 2021 Assembly Regular Meeting Minutes Page 9 of 9