02/20/1969 RMr)
KODIAK INLAND EOROUGH
ASSEMBLY MEETING - FEBRUARY 20th, 1969
I CALL TO ORDER
II ROLL CALL
IV OTHER MINUTES
The meeting was called to order by Presiding Officer Don Bullock, at 7 :34 P.A..
in the Courtroom of the New State Office Building, Kodiak, Alaska.
Present
Don Bullock, Presiding Officer
Mrs. Jo Hajdu
Mrs. Betty Springhill
Don Arndt
Jim Barr
III T ZINU'1ES OF PREVIOUS MEETINGS
A. Planning & Zoning, February 12, 1969 - There were no continents.
B. School Board, Regular Meeting, February 10th, 1969 - There were no comments.
Also Present
Sara Best, Borough Chairman
Roy Goodman, City Manager
Jim Stansbury, Building Inspector
Howard Keiser, Gen. Sanitarian
Sally Hendrix, Clerk /Treasurer
Approximately 70 people in the
Audience
A. Regular Meeting, February 6, 1969- There being no additions or corrections
the minutes were approved as presented.
B. Special Meeting with School Board, February 17, 1969 - approved as presented
V CORRESPONDENCE AND APPEARANCE REQUESTS
A. Requests for Tax Deferme:. °e from Walter Shuravloff and Katherine Chichenoff
Mr. Best stated he had reviewed the files presented and both applications
comply with the terms of the Ordinance for Tax Deferments. Mrs. Springhill
moved to grant tax deferments for Walter Shuravloff and Katherine Chichemiff,
seconded by Mr. Barr. The Motion passed by unanimous roll cal vote.
B. Letter from Port Lions Advisory School Board re Borough Boundary Changes,
stating that the Board was in support of Mrs. Jo Hajdu's study and felt the
boundaries should remain as they are and that they oppose any cut -back.
C. Certificate Awards - Tabled until later in the meeting.
D. Copy of Letter from Ed Crittenden to Ivor Schott re East Elementary School
Addition, that the plans and specifications are complete and need only to
be assembled and printed for bidding. This was discussed at the joint meet-
ing of the Assembly and School Board and decided that the plans should be
submitted for review by the Assembly and School Board before any bidding is
done.
E. Letter from Mr. Schott re Closure of ACS Trailer Court, stating the School
Board was requesting that the City Council and the Borough Assembly consider
measures to clear the Trailer Court for use early in the 1969 -70 fiscal year.
Mr. Best stated that the people there are on a thirty -day move out notice
and the Borough will know 30 to 60 days in advance of the move -out date. Mrs.
Hajdu suggested that the people be given sixty days notice. It was pointed
out that the City Council had passed a resolution requesting that the move -
out date be August 1st, 1969, and Mr. Resoff suggested that the Borough
coordinate with the City for this date. It was the expressed opinion of
several people in the audience that the ACS trailer court was a public
nuisance and was beginning to be more of a junk yard with garbage flying
around and many vacant trailers on the lots. Mr. Stansbury stated that
many people own their own land and are in the process of building a residence
and would be moving soon. It was pointed out that it would be difficult for
these people to move in the middle of winter and by setting September as the
trove -out time before school starts this would give the people an opportunity
to find a new 1. .tion fo their trailers. Mrs. Hajdu noted that a
this court w _ o., c o_ revenues for the I Street Playground and
by depriving ourselves of this revenue it will increase the tax burden on
others. Mr. Resoff replied that this court was established to relieve the
housing shortage and the City or Borough should not depend on this source of
revenue for the Playground or Schools. It was pointed out that the Sanitarian
should look into garbage situation and take steps to see that it is cleaned up.
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ASSEMBLY METING -° FEBRUARY 20th, 1969 Page 2
Mr. Resoff stated that there is no Ordinance in the City to allow Trailer
Courts and therefore the City has gone on record for the vacation of the
Court by August 1, 1969. Airs. Springhill moved that the Borough Assembly
concur with the Kodiak Island Borough School Board and City Council to set
August 1, 1969 as Closure date on the ACS Trailer Park, seconded by Mts. Hajdu,
and she stated that if this is the City's desire to deprive themselves of
this source of revenue they should not be deprived of this opportunity. The
question was called for and the voting was as follows: Mr. Bullock - YES;
Mrs. Springhill - YES. firs. Hajdu - YES; mr. Arndt - NO; Mr. Barr - No: the
motion passed by three to two roll call vote.
F. Letter from Mr. Schott re Insurance on Akhiok School, giving the invoice listing
and the J. B. International Change Orders. The amount of $195,495.23 includes
the change order not approved as yet. The question was raised as to whether
or not the Borough should pay for changes to bring the building up to Code
which existed at the time the building was ordered. It was noted that some of
these changes were made at the Borough's request. The contract is with J. B.
International's people to do the work and not the builders of the building.
The sum o.` $16,762 includes all the change orders. A claim is being filed
with the builders for certain items,as our contract was for FOB Kodiak. It
was noted that the contractor has been paid in part and it was suggested that
10% be held back until the school building is completed. Mrs. Hajdu moved that
the change orders as listed be approved, seconded by Hrs. Springhill. Mr. Barr
noted that for some reason the invoices do not add up to the contractor's
bill. The motion passed by unanimous roll call vote.
A. Certificate Awards- Mr. Best noted that during the past years several people
have served on committees as Chairman and have spent a good deal of time and
effort to perpetuate the Uorough and the City of Kodiak. Some have not received
even a token of thanks a . it was felt these people should be recognized.
Certificates of Appreciation were presented to i'7r. Dick Berg, Chairman of
Economic Development and Planning Committee; Mrs. Longmire, P & Z Commission,
who is at present in the hospital; Mr. Robert($Qoks, Chairman of Ordinance
Committee and Rev. Childs, Chairman of the Hospital Board and the Parks and
Recreation Study Committee.
VI PUBLIC HEARINGS
A. Ordinance 69 -4 -0 Establishing `Iinimum Penalty and Interest on Tax Payments
for Late Personal Property Filings, stating that any penalty involved amounting
to less than $1.00 (one dollar) will be established as a bill for $1.00 (one
dollar). Mr. Barr moved for adoption of Ordinance 69 -4 -0 in the second reading,
seconded by Airs. Hajdu. The meeting was recessed and the Public Hearing opened.
There were no comments on this Ordinance; the Public Hearing was closed and
the meeting reconvened. The question was called for and the motion passed by
unanimous roll call vote.
VII PLANNING & ZONING ITEMS
A. Resolution 69 -8 -R Approving Vacation and Replat of Urban Renewal Project, ASHA,
(Case 210 -A). The Resolution was read. firs. Hajdu asked if passage of this
would mean that something is going to be filedso that a legal description is
available for filing for title insurance. It was noted that this will clear
up many items and set forth a legal description of the area on one plat.
Mrs. Springhill moved for adoption of Resolution 69 -8 -R approving vacation and
replat of the Urban Renewal Project, seconded by Mrs. Hajdu. The motion passed
by unanimous roll call vote, with Mr. Barr abstaining due to a financial interest.
B. Recommendation from P &Z that Code NOT be Amended to Include Use Variance read
stating that this would be another instance of spot zoning and recommended that
the Code NOT be amended to include a USE Variance. bars. Hajdu said she would
like to go the other direction, but since the P &Z Commission deals with this
everyday she would go along with their recorrnendation. sir. Barr moved that
the P &Z Recommendation to NOT provide for a Use variance be accepted, seconded
by Mr. Arndt. The nption passed by unanimous voice vote.
C. Discussion of Proposed Junk Yard Ordinance ..bit. Best stated that there have
been some changes made in the original proposed ordinance and every Assembly
member has received copies of the original. It was noted that as soon as a
semi - -final draft is made up copies will be submitted to the Assembly before
an Ordinance is drawn up. Copies will also go to the City and to the Borough
Attorney.
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ASSEMBLY MEETING -° FEBRUARY 20th, 19G9 Page 3
VIII OLD BUSINESS
A. Letter from Harold Ward, Kodiak Beautification Committee re Borough
Contribution Toward Christmas Decorations, setting forth the amount needed
from the Borough. Hr. Best stated that he had noticed in many other Cities
that lights were used at Christmas time and that the City of Kodiak had
none. At that time he had expressed the thought the the Borough would possibly
be willing to help support such a lighting program if someone would start it.
This has been done, the lights have been purchased and are stored at KEA for
future use Mrs. Hajdu agreed but felt it should be put in the budget for
next year It was noted that, there is money in the contingency► fund for such
items that come up but were not placed in the budget. Mrs. Hajdu moved that
the bill be paid from the contingency fund, seconded byjRis,
Springhill. The notion passed by four to one vote, with iir. Barr votesig NO.
B. Resolution 69 -9 -R Rescinding Building Requirements for Miller Point First and
Second Addition Subd., and Kadiak First Addiction Subd. Mts. Springhill moved
for the adoption of Resolution 69 -9 -R rescinding the building requirements
for Miller Point, 1st and 2nd Adcn., and Kadiak First Addn., seconded by
Mrs. Hajdu. Mr. Barr stated that he was opposed to this actin when it was
first taken but does feel that since the lots were sold under this condition.,
once sold they should stay that way. It was questioned as to whether or not
the people owning lots in this area have expressed an opinion. No one has
come forward on this however Ht. Jackson stated he had purchased lots from
BETS with a similar condition and he had complied with this condition and felt -
that others should be required to do the same. As other sales were not conducted
with these conditions it was felt that this restriction should be removed at
this time. Ht. Resoff stated he felt that the Borough should be given every
opportunity to correct any mistakes made in the past. The question was called
for and the motion pass 'by a three to two roll call vote, as follows
mt. Barr - NO; Mr. Bullock - NO; firs. Springhill - YES; Mrs. Hajdu - YES;
ir. Arndt - YES.
C. Resolution 69 - -6 -R Ratifying Results of Special Election on Fire Protection
District No. 1, resolution was read by title only. At. Barr moved for the
adoption of Resolution 69=" -R , seconded by Mrs. Hajdu. The motion passed
by unanimous roll call vote.
D. Resolution 69 -7 -R Ratifying Results of Special Election on Water Service
Area No. 1, read by title only. Mr. Arndt moved for adoption of Resolution
69 -7 -R, seconded by Mrs. Hajdu. The motion passed by unanimous roll call vote.
E. Approval of Expenditure Report and Vouchers for January, 1969. The questions
brought up have been answered and the Assembly concurred with the Vouchers
presented.
IX NEW BUSINESS
A. General Discussion re Personal Property Taxes - Mr. Goodman was requested
to give some background information on this - in 1961 the voters elected to
have a 1% sales tax in lieu of a city personal property tax and in 1964 -65
the Borough was created and the City Council allocated by motion 1% of the
sales tax for payment to the Borough for the taxes that the Borough placed
on personal property within the City Limits. At present the Borough is
collecting from the City more than the 1% sales tax that was voted in 1961,
4.86 of the real property tax mills goes through the City to the Borough.
It has been proposed that the City will not charge personal property taxes,
however the city will not pay the personal property tax that the Borough
would levy within the City Limits. Everyone whether inside the City limits
or outside would have to pay the same rate on personal property taxes,7.84
Mills for 1968. The City would be able to lower the mill rate inside the
City limits in an amount equivalent to the 1% collected from the sales tax.
The City is interested in having the fishing boats exempt from Personal
Property Taxes throughout the Borough; canneries and cannery products, oil
supplies and stock on shelves - it was felt that taxing inventory items will
cause the stock to deplete and all inventory items, gas, oil and all saleable
items should not be taxed. Mrs. Hajdu stated that the tax burden will change
and real property owners will have to bear the burden of the taxes. The budget
will still have to be vet and by removing the taxes on certain property the
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ASST Tail E PI - FEBRUARY 20, 1969 Page 4
real property taxes are going to increase rather than decrease. It was
suggested that the City of Kodiak support the obtaining of a Borough sales
tax of 1% to replace lost revenue so that the tax burden does not fall on the
shoulders of the real property owners. The people want a new school and this
sales tax would help to pay for it. It would not be fair to exempt a certain
group or organization and not all of the people from a personal property tax.
It was pointed out that 50% of the boats are non - resident and you can not
tax them. The boats that bring in the revenue should be encouraged to cane
in here and not tax them and force them out as they are the only industry
generating new money in this town.
The opinions of the Fishermen in the audience were that other boats from
Seattle fish here and take the product from the area but are not taxed, so
therefore it is unfair to tax the fishermen that fish here and do spend money
in Kodiak. They also stated that they are being taxed right out of business,
there is only so much fish in the ocean and felt taxing should be State wide
and then the monies could come back to the Qinmunity.
Mr. Best stated that under the present system the real property inside the
City is taxed for additional revenue not generated by the 1% sales tax. If
the change is put through the citizens within the City of Kodiak are going
to be faced with an additional $102,000 of real property taxes. Mr. Goodman
said if the people are taxed directly more *people will contribute such as
those in Aleutian Homes, the telephone company, KEA, etc., and the City is
not deriving the revenue from the sales tax to cover the amount due the
Borough. If the people are taxed directly it would be easier to explain
the tax structure. Mr. Cannon mentioned here that as long as there is
duplication in goverrmer > we will have more taxes and more problems.
Dirs. Iajdu stated that according to the minutes she received and the paper,
there would either be a tax reduction or an increase in services. lir. Goodman
replied that the minutes read the mill rate would be reduced equivalent to
the amount that will be saved in not paying the Borough. He also stated that
the Borough mill rate would not increase as much as the City Mill Rate will
decrease. Mr. Bullock stepped down and Nlr. Barr acted as Presiding Officer..
Mr. Bullock moved that the Borough Chairman be instructed to draw up an
Ordinance which would delete the following catagories from the personal
property tax Borough wide; Fishing Boats, inventory and shelf supplies and
consigned goods directly related to seafood business, seconded by Mrs. Springhill
Mr. Barr felt that this proposed change would just cause a tax increase to
the real property owners. lir. Resoff suggested that there should be a re-
alignment between the Borough and City and each should collect their own taxes,
other communities do exempt certain classes of personal property from taxes.
Mr. Best pointed out that the personal property tax is extremely costly and
unfair, it is a difficult tax to administer and to collect. It was the
Borough Chairman's recommendation that the Borough go on ballot for a 2% Sales
Tax area -wide and do away with the personal property tax. This would protect
the boat owners and also the real property owners. This would also help to
reduce the real property tax when the school construction program is started.
and help to reduce the total mill levy to real property owners.
It was the general consensus of opinion that this was the thing to do - but
to abolish the personal property tax without an alternate source of revenue
would never work. Perhaps the 2% Sales Tax could be passed this time if the
people were aware that by passing this the personal property tax would be
abolished. It was pointed out that the last ballot on the sales tax was
voted on by perhaps 800 people and this does not constitute the majority of
the voters in the area. Without the sales tax however, the personal property
tax should be spread out over the majority not just a few people. Mr. Brechan
stated that he was opposed to any increase in the sales tax as it would tend
to drive business away from the local merchants and force the people to buy
more from the mail order houses. Mr. Barr stated that the portion of personal
property that is proposed to be exempt involves supplies, consigned goods,
fishing boats and gear amounting to 57% of the personal property total
evaluation which provides for more than half of the personal property taxes.
It was suggested that a tax study be made between the City and the Borough.
The Businessman's Study Group may hire' a consultant for reviewing costs
but no figures are available as yet.
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:.ASSEMBLY MEETII• G - FEBRUARY 20, 1969 Page 5
The question was called for and the voting was as follows: Mks. Springhill
weighted YES (this weighted vote was challenged and the Statutes were checked)
Mr. Barr as the presiding officer ruled, under AS 07.21.070 D, that the
weighted vote would not apply in this case; Mr. Arndt - NO ; Mrs. Hajdu - NO
Mr. Darr - NO: !ir. Bullock -YES; r`(r. Barr's ruling was challenged and it
was requested that the Borough Attorney be contacted to see if the weighted
vote would apply in this particular case.
Mr. Best suggested that the Assembly consider an alternate course)that of
instigating the 2% sales tax in lieu of the personal property tax - borough
wide. Mr. Barr moved that the Borough request a joint work session with
the City Council to confer on the tax situation, seconded by Mrs. Hajdu.
The motion passed by unanimous voice vote. Mr. Best will meet with the
City Manager to set a time for the joint meeting.
B. Resolution 69-10-R Designating Kodiak Mirror as Publisher for 1969 Foreclosure
Proceedings, resolution was read. Mrs. Springhill moved for the adoption of
Resolution 69 -10 -R, seconded by Mr. Barr. The motion passed by unanimous
roll call vote.
C. Resolution 69-11-R Setting Due Dates for 1968 Supplemental Real Property Taxes
setting forth the following dates: Tuesday, April 15th, 1969, First half Tax
Installment Due; Thursday, May 15, 1969, Delinquent Tax installment Due;
Monday, June 16, 1969, Second half Tax installment Due and Tuesday, July 15,
1969, Delinquent Tax installment Due. Mrs. Springhill moved for the adoption
of Resolution 69- 11 -':, seconded by 'Ir. Barr. The motion passed by unanimous
roll call vote.
D. Resolution 69 -12 -R Setting Date for 1968 Supplemental Real Property BOE, as
April 1, 1969, at 7:30 P.M., in the District Courtroom. of the New State
Office Building, Kodiak, Alaska. Mrs. Springhill moved for the adoption of
Resolution 69 -12 -R, sec ded by Mr. Arndt. The motion was passed by a
unanimous roll call vote.
E. Discussion re Library Funding - This was placed on the agenda at the request
of Rev. Bullock. The City Library needs funds in order to hire extra help
which will keep the library open after school hours in order for students
to use the facilities. The figures were not available as yet as to how much
money would be needed, for what period of time or just exactly what was needed.
It was noted that this library is used area wide as a certain number of books
are sent to the Villages and when returned others are sent out. The Assembly
could probably go along with this funding if the amount were small, say perhaps
$200 or $250;however,if a larger amount was needed it wculd be necessary to
have a referendum vote to see if the people desire the Borough to have this
power. Mrs. Springhill opposed the Borough assuming any more powers and suggestec
that this be taken care of under the power of education. It was requested that
the Borough Chairman write to the Local Affairs Agency to see if this fits
under the education power. The question of contributions was brought up and
Mr. Fenner replied that contributions would be appreciated but a definite
amount was needed to use for salaries, The volume of usage should be checked
to justify additional hours.
F. Ratification of Appeal Board for Bu.Yding Code - The following men were asked
to serve on an Appeal Board for the Building Code: Jerry Fawcett; Lou Schneider,
Dean Blake, John Welch, Ron Chase and the Building Inspector will serve as
Secretary. sirs. Hajdu moved that the ratification of the members of the Appeal
Board be approved as submitted, seconded by Mr. Barr. The motion passed by
unanimous roll call vote.
G. Tax Adjustments - P68-41. Mrs. Hajdu moved to approve the tax adjustment
P68 -41 as recommended by the Bcroough Assessor, seconded by Mrs. Springhill.
The motion passed by unanimous roll call vote.
X CHAIRMAN'S REPORT
A. Timber Sale: Division of Lands in in the process of revising the timber lease
procedures, which might make the prices lower for smaller sales. "he grazing
leases are also in the process of being revised and would include a reversol�::.ru
clause toward high and better uses. ,r. Barr felt that the cattlezrtri should
have some guarantee that he will have the land long enough to pay for bringing
in feed and establishing a business. It was stated that these revisions are
being worked out so that we do not completely tie up all the land for fifty
years or more in grazing leases,
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ASSEMBLY MEETILG m FEBRUARY 20, 1969 Page 6
C. Letter frcu Mr. Kenneth callback, Chief Land Section, Division of Lands, stating
he had read the letter to the Kodiak Mirror from Mr. Erasie and he was forwarding
information concerning the land in Bell's Flats. The letter further stated
that the Navy released the land on December 16, 1966 and the State had
preference right of selection until March 14, 1967, the State filed on
Dece -ber 21, 1966 and received tentative approval to all except the five
acre entries of. Berg and Valanis on March 9, 1967. Mr. Best noted that he
was waiting to answer Mr. Brasie's questions until further letters were
forthcoming. It was ?pointed out that Mr. Brasie paid $19.60 in taxes last
year, his child is bussed to and from school and he has Base privileges.
XI ASS. JIBLY COT VENTS
A. Mrs. Springhill re Closure of East Elementary School. It was noted that
when the school was closed last week because of frozen water line, the as
builts could not be located and there is no control valve at the top of
cutoff road. It was pointed out that Champion built the water line and
never requested the as builts ;however field notes were prepared and - are available
for Ilse, The line was sold to the City and the files were offered to the City
at the time of the sale.
B. Mr. Barr re Island Lake Water Line -all the bills are now in on this line.
C. Mr. Arndt re Island Lake eater Line - questioned what procedure is needed to
get a permanent water line to Island Lake. It was suggested that a board
be set up of interested people and meet with the EDA man who is due here on
Tuesday. There are books available for study on EDA funds.
XII AUDIENCE COMMENTS
A. T. T. Jackson re Appeal Board asked if a representative of the people should
not serve on this board According to the Code, five members of the
trades involved are to eerve on the board. Mr. Brooks felt that some new
revisions should be made in the uniform building code as it is very stringent
and there is a need for a building code that would fit the situations here
in Kodiak. It. waa noted that this is why the Board of Appeals is being
established. Mr. Arndt felt that revisions are needed as the Board of
Appeals will not do what was suggested.
B. Mr. Breckberg re hospital Construction - had heard rumors that copper pipes
were not being used in the hospital and suggested that a closer look be taken
to insure that this is being done. Mr. Stansbury replied that copper pipes
are being used and that only in the Trinkler system is black iron being used.
XIII ADJOURNMENT
&L ST:
The meeting was adjourned at 11:35
APPROVED:
i
Sally B. Hendrix, Clerk/Treasurer - C S. Best, Borough Chairman
Adjustments for the Assembly Meeting on February 20, 1969
P68 -41 Roy Furfiord:'-
- $90.94
Mr. Furfiord did not
own this trailer until
June 28, 1968, and should
not have filed for 1968.