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01/19/2023 Regular MeetingKODIAK ISLAND BOROUGH Assembly Regular Meeting January 19, 2023 A regular meeting of the Kodiak Island Borough Assembly was held on January 19, 2023, in the Borough Assembly Chambers. The meeting was called to order at 6:30 p.m. Staff present were Interim Borough Manager David Conrad, Borough Clerk Nova Javier, and Deputy Clerk Lina Cruz. 1. INVOCATION The invocation was given by Major David Davis of the Salvation Army. 2. PLEDGE OF ALLEGIANCE Mayor Williams led the Pledge of Allegiance. 3. STATEMENT OF LAND ACKNOWLEDGEMENT Mayor Williams announced that we are gathered on the traditional homeland of the Sugpiaq/Alutiiq people, and we acknowledge the 10 tribes of the Kodiak Alutiiq Region. We recognize the Alutiiq culture that enriches our community to this day. 4. ROLL CALL Present were Mayor Aimee Williams, Assembly members Scott Arndt, Joseph Delgado, Jared Griffin, Larry LeDoux, Scott Smiley, Geoffrey Smith, and James Turner. 5. APPROVAL OF AGENDA AND CONSENT AGENDA ARNDT moved to approve the agenda and the consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. 6. *APPROVAL OF MINUTES (Approved under consent agenda) A. Regular Meeting Minutes of January 5, 2023 7. CITIZENS' COMMENTS The following spoke under citizen's comments: • Cort Neff 8. AWARDS AND PRESENTATIONS — None 9. COMMITTEE REPORTS • Assembly Member Smith spoke on his attendance to the Providence Health System Service Area monthly meeting where they discussed a strategic plan and received updates from various departments. • Assembly Member Griffin spoke on the Consolidation Committee meeting that was held on Monday, January 16 During the meeting, they adopted a resolution Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 1 of 9 10 that advocated continuation of the Committee as well as requesting formal participation from the City of Kodiak. PUBLIC HEARING A. Ordinance No. FY2023-02B Of The Assembly Of The Kodiak Island Borough Amending Ordinance No. FY2023-02, Fiscal Year 2023 Budget, By Amending Budgets And Appropriations To Account For The Additional School Bond Debt Reimbursement Payments Received From The State Of Alaska SMILEY moved to adopt Ordinance No. FY2023-02B. Update 12/29/22 Work Session Requests) Assembly requested the $3,032,815 allocated to the two school roofing projects be re -allocated to the Renewal & Replacement fund ($2,472,815) and the Borough Vehicle Replacement project ($560,000). Original Beginning in 2017, the Governor's budgets reduced or eliminated appropriations for the School Construction Debt Reimbursement Program. Reimbursement Reductions: • 2017 reduced by 25% or $1,015,079 • 2018 reduced by 0% • 2019 reduced by 0% • 2020 reduced by 50% or $2,712,401 • 2021 reduced by 100% or $5,336,799 • 2022 reduced by 63% or $3,249,012 Since reductions to the reimbursement program were made after the Borough adopted their budget, taking the reductions into consideration when calculating the annual mill rates was not possible. To fill the gap in funding, other funds had to make up the difference so our debt service payments could be made. Funds contributing money to the Debt Service fund to make bond payments: • General Fund $5,319,272 • KIBSD (Education Support) $1,632,815 • Facilities Fund $2,213,366 • Renewal & Replacement $1,574,487 At the close of FY2022, the State of Alaska approved CCS HB 281 which appropriated an additional $220 million of funding to the School Construction Debt Reimbursement Program. This appropriation was enough to reach back and fully fund the unpaid reimbursements from 2017, 2020, 2021 and 2022 and in late August the Borough received $12,313,291 of that funding. In recognition of the receipt of those makeup reimbursement funds, this ordinance seeks to repay the funds that contributed money to cover the shortfall in the Debt Service fund and retain the current fund status as an IRS approved Bona Fide Debt Service Fund. 0 Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 2 of 9 One of the contributors to the shortfall, KIBSD, is not eligible to receive a direct reimbursement since a payment to them would violate the State's rules for local support and could count against them for future federal and state funding. So, as an alternative, staff is recommending that the $1,632,815 they contributed be split between the needed school roof repairs on East Elementary and North Star Elementary ($816,407.50 to each). Since the remaining $1,573,351 reimbursement we received exceed the contributions from other funds (some years the mill rate was increased with the expectation that less than full reimbursement funding would occur thereby reducing the need for other contributions), staff is recommending that amount be allocated as follows: • $700,000 to the East Elementary School Roof Repair project, and • $700,000 to the North Star Elementary Roof and Skylight Repair project, and • $173,351 be allowed to stay in the Debt Service fund (estimated fund balance at year-end $230,364 which is within IRS balance tolerances). Mayor Williams closed the regular meeting and opened the public hearing. Hearing and seeing none, Mayor Williams closed the public hearing and reconvened the regular meeting. ARNDT moved to amend Ordinance No. FY2023-02B by moving $560,000 from borough vehicle replacement project into the General Fund. ROLL CALL VOTE ON THE MOTION TO AMEND CARRIED FOUR TO THREE: Arndt, Delgado, Griffin, and Turner (AYES); Ledoux, Smiley, and Smith (NOES). ROLL CALL VOTE ON THE MOTION AS AMENDED CARRIED SIX TO ONE: Delgado, Griffin, Ledoux, Smiley, Turner, and Arndt (AYES); Smith (NO). 11. BOROUGH MANAGER'S REPORT Dave Conrad, Interim Borough Manager, reported on the following: Manaage§ Department • Manager Recruitment — Interviews are scheduled for January 31 and February 1 • City — Borough Joint Work Session held last night. • LATCF Funds — U.S. Department of the Treasury Local Assistance and Tribal Consistency Fund - The staff is monitoring the accounts for the first tranche deposits. Nothing has been deposited as of today's date. The eligible amount is $4,787,173.04. Staff anticipates half of the funds to be deposited within a week. KIB Facility - Lease discussions have begun with the City of Kodiak specific to the 710 Mill Bay Road Facility. Awaiting contact from the city staff for a follow up meeting. • 717 Eagan Way Lease — Proposed lease negotiated during the past two weeks will be discussed in Executive Session this evening for Assembly consideration. The KIB attorney has reviewed the final draft. • Larsen Bay School — Staff has not received signed facility transfer documents back from the Larsen Bay Tribal Council. Staff has attempted to contact the residents that had been provided documents, but no reply has been received. Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 3 of 9 Staff will attempt contact again. Staff is planning to travel to Larsen Bay to inspect and provide a repair list for items that were identified and not repaired prior to the signatures being finalized on the facility transfer to the Larsen Bay Tribal Council. Enaineering and Facilities • OSHA Voluntary Compliance Visit — OSHA staff due in next week. Meeting scheduled to start at the Baler on January 31st at 9:00am. Focus will be on the Baler and Leachate Treatment Facility. • Architect Visit - Corey Wall of Jenson, Yorba, Wall will be in town in February. Plans are to present information on the Peterson School Roof Replacement and several other projects during the February 9th Work Session. Arrangements for interior tours of the schools have been made during his stay. • Vehicle Procurement Proposal - Small vehicle RFP has been advertised and vendors have been alerted to the advertisements. The proposals are due January 30, 2023. • Pick-up truck RFP is being finalized for review and advertisement. • KFRC Carpet Replacement — Final billing and acceptance of the job has been completed. Staff is awaiting a discussion with the GSA representative that deals with the specific lease for this facility for further discussion regarding carpet replacement in the library leased space. • KFRC Fume Hood Upgrade — This project is functionally completed. Balancer and Control Contractor will be on site January 30, 31, 2023 for final calibration and adjustment of the Variable Frequency Drive. • Leachate Treatment Plant — Contractor has reevaluated winter construction period. Anticipate mid to late March prior to the beginning of the assembly of the building package. Awaiting final structural calculations for submission and review prior to permit being issued. • Bayside Classroom Addition — Staff has been informed that the initial designs prepared by the architect have been rejected. The board is looking for a larger addition size. Awaiting preliminary estimate for the installation of the commercial sprinkler in the existing classroom and proposed addition has been requested. • Fire Protect Area #1 Pick Up — The existing red E/F pick-up has been serviced and 4WD is being tested and confirmed. Red truck will be loaned to Bayside for the Chief Officer response vehicle due to the poor mechanical condition of the existing white response vehicle. • OSHA Voluntary Compliance Visit -- OSHA staff will be in town January 24th through January 27th. Pre inspection walk throughs are being conducted. Finance Department/ IT • FY2024 Budget Preparation — Packets have been forwarded to the Service Area Boards and Staff for the preparation of the upcoming budget discussions. Boards are scheduling upcoming required meetings. • PATS Software — Property Assessment and Taxation Software - RFP is being advertised with a bid date of February 28, 2023. • Popular Report - Final report has been received and has been distributed to the assembly for review. • The department continues to be short staffed due to vacation and medical treatment. • Annual Financial Statement copies have been provided to the assembly. Copies of the report will be made available online for the public. Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 4 of 9 • Staff has been informed that additional Opioid Settlement Funds have been identified and will require approval in April 2023. Assessing Department • Property Valuation — Property review and inspection for valuation has been completed. Staff is entering data for preparation of the value of the tax role update. • KANA Suit — Court dates are January 30th - February 3rd. List of Pending Items for Discussion • City of Kodiak - E911 System and compensation o Borough Building Remodel or Upgrades o Joint support and participation in the development of the CIP List (Federal emphasis) • Disposition of Closed School Facilities — Allowable Scope for Current Staff Continued update of the Personnel Manual • ARPA Funding Reporting is continuing. • Grant Application and Local Match Funding — Approval for application prior to expending staff time. • Leases — City of Kodiak Borough Building Lease, Teen Court, Red Cross, Fairgrounds, KISA, Chiniak Library, Long Term Care • Major Maintenance Funding for Facilities • Disposition of Mental Health Buildings — Bid received • Solid Waste Collection Contract Modifications Service Area Contracts • Annual Contracts • Additional Methods to Reward Employees in Personnel Manual • Vehicle Replacement Funding opportunities for road repairs and improvements. 12. MESSAGES FROM THE BOROUGH MAYOR Mayor Williams thanked everyone who attended the Joint Work Session with the City of Kodiak held on Wednesday January 18. She hoped that both bodies will be able to meet on a quarterly basis in the future. She reminded citizens that the Alaska Marine Highway is now accepting public comments. Lastly, she acknowledged and thanked everyone who has reached out to express concerns regarding the Tanner Crab Fisheries. 13. CONSIDERATION OF CALENDAR - UNFINISHED BUSINESS — None 14. CONSIDERATION OF CALENDAR - NEW BUSINESS — None 14.A. CONTRACTS —None 14.B. RESOLUTIONS —None 14.C. ORDINANCES FOR INTRODUCTION — None 14.D. OTHER ITEMS Kodiak Island Borough January 19, 2023 Assembly Regular Meeting Minutes Page 5 of 9 Confirmation Of Mayoral And Assembly Appointments To The Different Boards, Committees, and Commissions ARNDT moved to confirm the following appointments: • Mayoral appointment of Mr. Jascha Zbitnoff to the Architectural/Engineering Review Board Building Code Board of Appeals seat for a term to expire December 2025 • Assembly appointment of Mr. Lee Robbins to the Board Of Equalization seat for a term to expire December 2024 • Assembly appointment of Mr. Robert Tucker to the Board Of Equalization seat for a term to expire December 2025 • Mayoral appointment of Mr. Brian Himelbloom to the Parks and Rec Committee for a term to expire December 2025 • Mayoral appointment of Mr. Kent Cross to the Planning and Zoning Commission City seat for a term to expire December 2025 • Mayoral appointment of Ms. Teresa Pruitt to the Solid Waste Advisory Board seat for a term to expire December 2025 • Mayoral appointment of Mr. Lawrence Van Daele to the Solid Waste Advisory Board seat for a term to expire December 2025 The Clerk's Office advertised the impending vacancies per Borough code. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Griffin, Ledoux, Smiley, Smith, Turner, Arndt, and Delgado. 2. Good Cause Determination For A Senior Citizen Exemption, Applicant: Mr. Kyle Crow 0 Mayor Williams recessed the regular meeting and convened the quasi - adjudicatory hearing. SMILEY moved to uphold the Assessor's decision for lack of good cause shown as stated in KIBC 3.35.030 D for Kyle Crow for the property located at 430 Main Street, Port Lions, AK. 99550. Applicant requested a good cause hearing be brought before the KIB Assembly to determine if he had good cause for filing a late application for Senior Exemption. The hearing procedure in KIBC 3.35.050 was followed. The appellant was able to call in for the hearing. A letter of notification was mailed by the KIB Assessors Office on December 16, 2022, to advise the applicant of the ability to give public testimony for their appeal. KIBC 3.35.030 Real and personal property exempted from taxation. D. In the event that a claimant fails to apply for a senior exemption as provided by AS 29.45.030(e) by January 15th of the assessment year for which the exemption is sought, the borough assembly for good cause shown may waive the claimant's failure to make timely application for the exemption for that year and if the assembly finds good cause for the failure to make a timely fling the Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 6 of 9 borough assessor shall accept the application, as if timely filed, subject to the provisions contained in AS 29.45.030(e). 1. A waiver may only be granted for the year in which an application is filed. A delay in filing an application shall be presumed to lack good cause for the delay and may be denied unless the assembly finds good cause for the delay as defined in subsection (D)(2) of this section. 2. Good cause" shall mean extraordinary circumstances beyond the control of the applicant, including but not limited to a medical condition or disability, impaired mental capacity, family emergency, death in the family, or similar serious condition or event that substantially impaired the applicant's ability to file a timely application. "Good cause" shall not mean late filing due to the applicant's inadvertence, oversight, or lack of knowledge regarding the filing requirements or deadline, financial hardship, or failure to pick up or read mail or to make arrangements for an appropriate and responsible person to pick up or read mail. ROLL CALL VOTE ON THE MOTION CARRIED UNANIMOUSLY: Ledoux, Smiley, Smith, Turner, Arndt, Delgado, and Griffin. Chair Williams announced. according to Appellate Rule 602, the Appellant or the Assessor has the right of appeal to the Superior Court of the State of Alaska from our final decision. Should you wish to exercise your right of appeal, you must do so by notifying the Borough attorney and initiating the process within 30 days from the date of our written decision. Failure to do so will forever bar you from any appeal of this decision. 15. CITIZENS' COMMENTS The following spoke under citizen's comments: Cort Neff 16. ASSEMBLY MEMBERS' COMMENTS • Assembly Member Smiley expressed concern regarding the rocket launches on the island and the rocket fuel being spread. He would like to explore solutions to this problem. • Assembly Member Ledoux had no comment. • Assembly Member Arndt had no comment. • Assembly Member Smith had no comment. • Assembly Member Griffin expressed gratitude towards the members that attended the City and Borough joint work session on Wednesday, January 18. He also encouraged citizen's regardless of expertise to sign up and apply for any vacant Committee or Board they might be interested in. • Assembly Member Delgado had no comment. • Assembly Member Turner had no comment. 17. EXECUTIVE SESSION A. Discussion Of Negotiating Position For Lease of 717 E. Rezanof Drive SMILEY moved to convene into executive session under the authority of KIBC. 2.30.030 (F)(1)(b) and (h) to discuss the Borough negotiating position regarding Kodiak Island Borough Assembly Regular Meeting Minutes January 19, 2023 Page 7 of 9 the terms for lease of property at 717 E. Rezanof Drive, a matter the immediate knowledge of which would tend to adversely affect the finances of the Borough. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Smiley, Smith, Arndt, Delgado, Griffin, and Ledoux. SMILEY moved to invite the Mayor and Assembly, except for Assembly Member Turner, the Manager, and the Clerks into Executive Session. The Borough issued a Request for Proposals (RFP) for the lease of Borough property at 717 E Rezanof Drive. There was only one respondent. The Borough RFP included a sample lease and invited proposers to identify any modifications they request to the proposed lease terms. The respondent proposed some modifications to the proposed lease. The Borough staff seek Assembly direction in negotiations over the terms which are acceptable to the Borough for the lease, which is a disposal of an interest in property. KIBC 2.30.030 (F)(1)(h) authorizes discussion of the terms for disposal of an interest in land to take place in executive session. KIBC 2.30.030 (F)(1)(b) authorizes discussion of the matters in executive session if the open discussion may tend to adversely affect the finances of the Borough. It is recommended that the discussion take place in executive session in order to keep the Borough's position regarding the lease rent it is willing to accept, and the relative strength of the parties' bargaining positions, confidential from the proposer until a tentative agreement subject to the Assembly approval is reached. If and when final terms are tentatively agreed upon by the parties the negotiated terms would be made public prior to Assembly approval of the lease. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY After the vote, Mayor Williams recessed the special meeting and convened the executive session at 7:13 p.m. Upon returning from the executive session, Mayor Williams reconvened the special meeting at 7:45 p.m. and announced that no action was taken as a result of the executive session. A special meeting was called on Thursday, January 26, 2023, so the contract that pertains to this lease can be discussed publicly. A Special Meeting was called on Thursday January 26, 2023, so the contract that pertains to this lease can be discussed publicly. 17. ADJOURNMENT ARNDT moved to adjourn the meeting at 7:47 p.m. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY KODIAK ISLAND BOROUGH Kodiak Island Borough January 19, 2023 ATTEST: Assembly Regular Meeting Minutes Page 8 of 9 J u L .t' f dh,V Aimee Williams, Borough Mayor Nova M. Javier, Borou Clerk Kodiak Island Borough January 19, 2023 Assembly Regular Meeting Minutes Page 9 of 9