01/02/1969 RMr)
ADJUSTMENTS FOR THE ASSEMBLY MEETING OF 1/2/69
1/2/69
Adj. No. Name Amount Reason
P68 -31 Elsenbast, Carl & Marilyn - $12.94 Filed for bankruptcy.
KODIAK ISLAND BOROUGH
ASSEMBLY MEETING - JANUARY 2, 1969
I CALL TO ORDER
The meeting was called to order at 7:30 P.M. by the Presiding Officer
Don Bullock in the Courtroom of the New State Office Building, Kodiak, Alaska.
II ROLL CALL
Present
Dan Bullock, Presiding Officer
Mrs. Jo Hajdu
Mrs. Betty Springhill
Don Arndt
Jim Barr
Also present: Mr. Roy. Ian, Attornays Jim Building Inspector,
Mr. Ray Burt, Mr. Curt Lyons, Mr. Wilton White, Mrs. Lorna Arndt and about
five people in the audience.
III /MUMS OP PREVIOUS MEETING
A. Regular Meeting_- December 19, 1968 - No corrections or additions being
stated the minutes were approved as presented.
IV Ovum mums
A. Work Session - December 16, 1968: Corrections are as noted:
Add the underlined words to Paragraph 7, Item A - Page 1 --
"Mrs. Hajdu pointed out that the 2% .' Sales Tax was voted down.
Altho , Ci Council has .: = sed an ..0 otai. 2% Ci { �S. Sales Tax the City
as a .. t ,1 ty 10 1,11 Q S. L i L . • 1� �{C. it . - a .... idea
to put the 2% Borough Sales Tax to support the schools on the Ballot again.
If so advertising should be done well in advance.
B HOE minutes - December 19, 1968 - The minutes were droved as presented.
V COFFESPONCENCE AND APPEARANCE REQUESTS
A. Roy Madsen re John Cole Claim: Mr. Madsen appeared at the Assembly's
request to give his opinion as to the Borough's liability in the Cole Claim.
The background of the case was reviewed. Mr. Cole's attorney has written
suggesting that a settlement of $1,000 could be reached at this time as
Mr. Cole is out of the State and does not plan to return until sometime in
June. Mr. Cole has claimed that the Borough did not give him the agreed
upon notice of 90 days prior to terminating his contract. He was also
asking for the vehicle allowance that was not paid for the three months of
March, April and May of $175 per month. This amounted to a total of $4,125
plus attorney fees and court costs. W. Madsen stated that the first offer
received from Mr. Clouse was to settle for $2,500 which was half of the
original suit in November, 1966. The Borough refused this settlement and
a later letter suggested a settlement of $1500. In March, 1967, Mr. Dave
Ruskin stated he thought he could persuade the Borough to pay $400 or $500.
Mr. Madsen stated he had talked with Mr. Clouse in Anchorage about trying
to get this settled and now a letter has been received with a suggested
settlement of $1,000. It has oome down to the point where any settlement
would have a nuisance value and Mr. Clouse has left the door open for a
compromise. Mr. Madsen was of the opinion that it is sometimes better to
pay a small amount instead of gambling on a larger cost because of a
principle. It is possible that the amount of $500 would be acceptable to
Mr. Clouse and his client. Mrs. Springhill asked if there was anything in
writing concerning this and was informed that a statement has been received
frost Mr. Powell concerning a mutual agreement between Mr. Cole and Mr. Powell
that a 90-day notice was to be given in the event of termination of employ-
mint. This was a verbal agreement and there is nothing in writing. Mrs.
Springhill asked if this agreement would be binding to the next Borough
Chairman. It was stated that being a elective office the new Chairman
cannot be bound by the preceding Chairman's agreement. The Borough Chair-
man did continue Mr. Cole's employment for five months after the Chairman's
election and then did summarily dismiss him. It was stated that the
Borough Chairman should find out what the policies of his predecessor had
been and in the event he changed those policies the employees should be so
notified. Mr. White stated that he had discussed the general outline of
the workings of the Borough with Mt. P+rowell and he had no knowledge of the
ASSE ,Y PamETING - JANUARY 2, 1969
Page 2
Agreement as stated by Mr. Cole. He felt that had this been a part of
the contract Mr. Cole would have discussed it with him prior to termination
and as a matter of fact slid not mention this until about a week or so after
termination. It was stated that in June of 1966 the Borough Assembly up-
held the Chairman's decision to release Mr. Cole and Mr. Cole filed suit
in September of 1966. Mr. White noted that Mr. Cole is requesting a
vehicle allowance of $175 per month for the use of his private vehicle.
Mr. Cole was advised that the Borough had indicated interest in purchasing
its own vehicle and he was given 30 -day notice of termination of this
part of the agreement. This termination notice was not in writing as the
original agreement had not been a written one.
Mrs. Hajdu agreed with Mr. Madsen that this did have some nuisance value and
moved that the Assembly offer a compromise settlement in the amount of $500.
The motion died for lack of a second. Mr. Barr thought a compromise offer
had been made by Mr. Ruskin, tut it was pointed out that this was merely a
reply to a letter from Mr. Clouse. It was felt that as this agreement was
not in writing it could not be ccr.Lidered valid, 'however Mr. Madsen pointed
out that verbal agreements are accepted everyday in many court cases. The
reasons for termination of the employment were discussed: dishonesty,
neglect of job assignment, conduct in the community causing embarassment
to the management of the Borough and infidelity to the point of nullifying
a persons effectiveness. It was felt by Mr. White that all these points
were pertinent. Mr. White stated that while on a supposed hunting trip
Mr. Cole was actually on a six -day assessing trip to None. He did feel
that the Borough Assembly could not be held responsible for an agreement
that was discussed over coffee. Jir. Barr sioved that the Borough Attorney
answer Mr. Clouse's letter stating that the Borough Assembly does not wish
to accept their proposal and that if they so desire the Attorney will
at to • t us to accept a c. •romise as •- the •revious letter of
Dave Ruskin. Seconded by Mr. Arndt. Mr. Arndt asked what approximate
costs would be of a court trial. Mr. Madsen could not say but assumed it
would be a jury trial and could possibly last six days, a minimum of
$1500. He also stated that if two parties can settle a dispute between
themselves without going to court there is more to be gained than going
through a full scale court suit. It was noted that 75% of cases filed
are settled by compromise out of court. The question was called for and
the motion passed by a unanimous roll call vote.
B. Letter from Dave Cluchey re Fire at Akhiok, Mike Farsovitch's Claim
Mr. Madsen's opinion had been requested in this case as to the Borough's
legal liability concerning the burning of Mr. Farsovitch's house at the time
the School was damaged. Mr. Madsen stated in his opinion normally there
would be no legal responsibility where one person's property is destroyed
due to fire on another's property. However certain factors could exist
where there might be a responsibility. Unconfirmed facts came to Mr. Madsen's
attention after the fire that previously there had been a fire in the gen-
erator room and that the floor was oil- soaked. These facts unconfirmed
but it was pointed out that if they were true then there � be a legal
responsibility if these discrepancies were known and not remedied. It was
noted that Mr. Schott had written to the insurance company for information
concerning liability coverage and as yet no answer has been received. There
can be no action taken at this time until that information is forthcoming.
Mrs. Hajdu asked if there was an act of negligence will the insurance
cover this and it was pointed out that there must be negligence to have
liability and the word "negligence" is the crux to the whole thing.
C. REPLAY of Old City Dock, Parcels A -E: This item was to have been on the
agenda for December, however ^,r. Madsen advised the Borough and Mr. Barr
that he would not prepare the resolution because there were some items
not taken care of on the plat. There were some areas that should be in-
cluded in the plat. Since the discrepancies were pointed out, it was
suggested that this should be referred back to the client and the engineer
for correction.
D. Letter from Division of Lands re Land Selection: The letter was read stating
that in order to comply with the Borough Act as passed April 12, 1963,
Section 07.10.150, A. S., which states a borough may select lands within
five years after the date of availability of State lands, a letter should
be sent and placed on file so stating. This letter was mailed on
December 30, 1968, so stating that the Borough wished to select all lands
available to the Borough as of December 31, 1968.
1
ASSEMBLY P .RTING - JANUARY 2, 1969
VI PUBLIC HEARINGS -- NONE
VII PLANNING & ZONING ITEMS - -- NONE
VIII OLD BUSINESS - - -- NONE
DC NEW BUSINESS
Page 3
D. W. Ray Burt and Mr. Curt Lyons re Kadiak Subdivision: Mr. Burt was repre-
senting the Frontier Baptist Church, a newly established Church in the
process of looking over suitable lands for purchase and on which to build
a new church. The Church would like to purchase the Southwest corner
directly across from the East Elementary School, two and a half or three
acres would be needed. Mr. Burt asked where the Borough stood on the
Trident Program and was informed that the land has been offered and no
one has accepted it as yet. It was noted that this small amount could not
be taken out and further noted that possibly four units would have to be
put up for auction. A resolution has been passed obligating the use of this
land for the Trident Program. It was felt that perhaps with Mr. Hickle
going into the Department of Interior that we may have a better chance of
seeing something done on this program. With other lands available in
!4onashka and other areas the Assembly would be reluctant to put these lots
on the market. It was recommended that the Borough proceed along these
lines, that we are considering an auction and set some future date as it
will take considerable time to advertise. It was also suggested that a
letter be sent to Mr. Hickle, Secretary of the Interior telling him that
there has been interest in the land and the community unity needs the taxes but
the Assembly hesitates to do anything that might jeopardize the Trident
Program it it is still being considered. mh,C shoulri go through Planning
& Zo • u u • I ., -.. - .. t • .• done. Mr. Best stated that is
a growing interest in this land and we might be looking toward making the
land available in the event that the Trident Program does not desire the
land. All that is necessary for an auction is a current appraisal within
90 days of the auction. It would be possible to get a reply back from
irr. Hickle before taking any action. - ter should also go
to e • n Oce. •• a . Mr. Lyons sta
Church was organized on December 4, 1967 and suitable land for the location
of the Church has been sought for sane time. Most of the other lots,
Mr. Hubbard's and some owned by the Catholic Church are way too high.
Mr. Lyons further stated that although they would very much like to have
the land in Kadiak Subdivision they would not of course want to jeopardize
the Trident Program. It was decided that a letter would be sent to Mr. Hickle
with a copy to the Oceanographic Comittee as to the status of the program
at this date.
A. Approval of Judges for January 14th Election: Mrs. Lorna Arndt,
Mrs. Loveis Jackson and Mrs. Bea Nachtweih. Mrs. Hajdu moved for approval
of Mrs. Arndt, Mrs. Jackson and Mrs. Nachtweih as judges, seconded by Mr.
Barr. It was noted that nothing has appeared in the paper concerning the
cost of the fire district and it was suggested that perhaps a newsletter
would be needed. Mrs. Hajdu stated it should be clear to the people
voting that they are voting as to whether or not they want fire protection.
Mr. Best stated he would be putting something in the paper very shortly
concerning the cost of the fire district. The question was called for
and the motion passed by unanimous roll call vote.
B. Approval of Expenditures and Vouchers for December. It was noted that some
items have been over - extended however, the ttal capital expense will
probably remain the same. Dues for the Municipal League was noted to be
six -month payment. It was suggested that the villages should be notified
that they are eligible for representation. Noted that under insurance for
the fire truck a misquote was received and it will have to be adjusted when
the correct cost has been received. The data has not been received for
setting up a Water District Budget as yet. The bills have not been turned
in, however it was noted that the cost should be known even if the bills
have not been submitted in order to set a general outline. There were no
other cents.
C. Approval of Tax Adjustment P68 - 31: Mrs. Hajdu moved for accepting the
Tax Adjustment P68 -31 as recommended by the Assessor. Seconded by Mrs.
Springhill. Motion passed by a unanimous roll call vote.
ASSEI]BLY MEETING - JANUARY 2, 1969
X
CHAIRMAN'S REPORT
XI ASSEMBLY CON E JTS
Page 4
A. Letter from Department of Highways re 13 -acre Land Requirement. The
letter was read stating the Department of Highways no longer had any
need for the 13-acre plot in Bell's Flats.
B. Fire District Budget: This was distributed at the last Assembly Meeting
for consideration and comments by the Assembly. It was noted that the
telephone calls have gone over slightly and the changes as noted previously
on the insurance will be made, however this will not change the rill Rate
as it will stay about the same. Mrs. Hajdu asked if this had been taken
to the Advisory Conrittee and if so what were their recommendations. It
was noted that two members of the Committee are out of town and therefore
their opinions and recommendations have not Leen received but will be
considered at the time they are received. It was suggested that the
contingency fund be increased so that.the tothl budget will be about $15,000.
C. Municipal League: A letter received from Mr. Don Berry was read concerning
the study of the League's 1969 Legislative program and requesting help in
the priority list of items. Ar. Best asked that the members of the Assembly
look over the priority list and submit their suggestions to him and he in
turn will send these along with his own suggestions to Mr. Berry.
D. Alaska Travel and Trade Fair, Los Angeles, California, March 7 -15, 1969.
Mr. Best stated that if the question is ever brought up as to why the
Borough is not participating in this Fair it is to be noted that the
Borough does not have this power to expend money in this way.
E. Central Treasury: Some years ago it was suggested that the Borough go
to a centralized treasury so that all funds are in a central account. It
was felt that previously the Borough Staff was not ready for this undertaking
however, this is not the case at present and it is time to follow the
recommendations and go into a central treasury. Par. Best stated that he
has asked rlr. Madsen to draw up an ordinance as necessary under the Statutes.
AX Mr. Barr re School Board - Assembly Guidelines: -1r. Barr stated that there
are two items he would like to take up with the Assembly during an informal
work session. After discussing this with the Assembly, the matter would
be taken up with fr. Schott and the School Board for a further work session.
This item would be the setting up of Guidelines to help the School Board
and Assembly as far as responsibilities of each go.
Native Riots: Mr. Barr stated the second item he would like to discussed
at an informal work session would be the Native Rights to land particularly
in the Bell°°s Flats area.
B. Mrs. Hajdu re Planning Grant: Mts. Hajdu wished to be advised of the
current status of the planning grant as there had been some concern that
the grant might not be signed in time to meet the deadline. HMr. Best
stated that he had talked to Mr. Crittenden at about 4:00 P.M. this date
and he has most of the documents and will confer with Mr. Schott and ISr.
Norton on Friday, January 3rd. He was aware of the deadline date of
January 17, 1969 and the documents will be ready to sign before that date.
Mrs. Hajdu asked if a portion of the grant must be repaid and was in formed
that this is a loan and iriust repaid when construction is started. It was
questioned if the bonds are never sold or construction started , what then -
it was noted that then we do not repay the money. Mrs. Hajdu stated that
nothing should be done to jeopardize this grant. It was stated that Mr.
Hobbs said the money is ours and the release date on the grant is no
problem.
C. Ars. Springhill re Borough Boundaries: r7rs. Springhill stated that a
resolution has been passed at the City level to reduce the size of the
Borough and pull in the boundaries and it was suggested that the Assembly
draft a resolution accordingly to submit a change in the boundaries. Mrs.
Hajdu asked what studies had Leen done and on what the City based this
action. bars. Springhill stated that the study is experience and general
consensus of opinion that this needs to be done for the welfare of the
area. The City Manager has talked to a new man in Juneau on the Boundary
Commission and he is willing to hear anything on this matter. Mrs. Hajdu
ASSE2BLY ;METING - JANUARY 2, 1969
ATTEST:
Page 5
requested that more information be given and that there should be some
background costs. It was noted that the City did not send copies of
the resolution to either the Borough or to the Villages as should have been
done. It was felt that this resolution was a double- pronged one - in getting
the boundaries of the Borough reduced or to increase the size of the City.
It was also felt that this would be forcing annexation to the sane are
that had previously voted annexation down. Mr. Bullock stated that this
resolution was drafted primarily' to bring the boundaries to within the
road system; Ga the Borough is too large and the monies are being spread
too thin. Mrs. Hajdu stated that she would not be willing to vote for this
resolution because she is a representative of the outlying areas and we
have a situation where the Villages were just sort of dropped on us and we
have done very little for them and another shift would make the problem even
worse. It was also felt that this should be taken care of on the local level
and not take to the Boundary Commission. Although little has been done for
the Villages so far, even less would be accomplished under State or Federal
agencies. It was questioned as to what the Villages felt about this and
mentioned that they should be given a chance to speak out on this question.
It was noted here that there have been several times the Villages have
mentioned that they were better off under BIA than the Borough. However,
the sewer and water lines in some areas that were to be established by the
BIA can still be put in by that agency as the Borough does not have that
power. ilrs. Hajdu felt that since full information is not availle no
action can be taken at this time. Mks. Springhill moved that the Borough
Assembly adopt a resolution requesting the Boundary Commission to reduce
the size of the Borough to within the road i Mr. Bullock stepped
down as Presiding Officer and turned the meeting over to Mr. Barr as Deputy
Presiding Officer. The motion was seconded by Mr. Bullock. The question
was called for and the roll call vote was as follows: Mrs. Springhill
requested Weighted YES (this was contested by 14rs. Hajdu as not in an area
that the Weighted Vote can be used) . Mr. Bullock - Weighted YES; Hr. Barr
NO; Mrs. . Hajdu NO; Mr. Arndt NO. Mr. . Barr ruled that the Assembly was
unable to arrive at a decision and will refer this to our Attorney for a
a decision on the vote. If the weighted vote applies then the resolution
will be drafted; however, if the weighted vote does not apply the resolution
will not be drawn up.
Staff Residence: Mfrs. Springhill asked the status of the reply concerning
cost of the Staff Residence and was informed that no reply has been received
as yet.
D. Nlr. Bullock re Sanitarian: Mr. Bullock asked whether or not official
notice had been given by the Sanitarian of his vacation of his office.
It was noted that a memo was received from Tx. Keiser, a copy of which
was sent to all Assembly members, in which he stated he was seeking the
position that was open in Kenai. This office in Kenai will be vacant score
time in the early Summer. That is all the information at the Borough office
at this time.
E. Hr. Barr re Akhiok School: Mr. Barr asked the status of the Akhiok School
and it was noted that the final inspection is to be January 3rd. Mr. Arndt
stated that before final payment is made it should be taken to the Assembly.'
XII AUDIENCE CONTi -1ENTS - NONE
XIII ADJOURIT -
The meeting was adjourned at 12 :05 A.11.
Sally B. endrix, ClerkiTreasUrer
APPROVED
Boroug Chairman, G.S. Best