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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. t ' 1 CI 4 2 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. s 4 2 s.; 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 ri i 7 no 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. j 1 :.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, + 2 4 _ 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.