05/15/1969 RMKODIAK ISLAND BOROUGH
ASSEMBLY MEETING - MAY 15, 1969
I CALL TO ORDER
- IV MU ER MINUTES
The meeting was called to order by Acting Presiding Officer Jim Barr at 7,30 P.M.
in the State Office Building, Kodiak, Alaska
II ROLL CALL
Present
Jo iiajdu, Lorough Chairman
Jim Barr, Acting Presiding Officer
Betty Springhill
Don Arndt
Ed Naughton
Absent
Don Bullock, (excused)
Also present: Roy Goodman, City MIanager; J. L. Stansbury, Building Inspector;
Robert DeVol, Sanitarian, John Welch, P &Z Herber and approximately 30 people
in the audience.
III MINUTES OF PREVIOUS MEETING
A. Regular Meeting - May 1, 1969. There being no additions or corrections the
minutes were approved as presented.
A. P &Z - Regular Meeting - May 7th, 1969 - There were no comments
B. School Board - Regular Meeting - May 12th, 1969 The Borough Chairman commented
on Item 3 under Correspondence in that there will be a $70,000 deficit in total
anticipated receipts. The School Board has been requested to review their
1969 -70 Budget with the end result that the Budget will be reduced to cover this
deficit. A new Budget will be forth coming with the Shared Revenue to off set
the local support.
V COMMUNICATIONS AND APPEARANCE REQUESTS
A. Letter from Corp of Engineers re Flood Control Insurance. The letter was read
stating that flood control insurance can be made available to the citizens
of the community if certain criteria are met by the governing body. The Chairman
felt that this was basically a program for areas that are subject to flooding on
a regular basis. The assistance from the Federal government is based on a
local program being established. A memo from the Planning & Zoning Commission
statee that the Commission did not feel that the program was needed in this area.
A letter from Roy Goodman recommended that the Borough ;apply for the Flood Survey
by theiCorps of Engineers. It was suggested that perhaps this should be discussed
at the City Council level. i1r. Naughton moved that this be tabled until a
report was received from the City Council on this proposal, seconded by Mrs.
Springhill. Motion passed by unanimous voice vote.
B. Douglas 1•icGrath Application for Trailer Permit, 2nd Addition Miller Point,
Blk 1, Lot 9. This application is for temporary location until such time as
a permanent residence has been built. The McGraths spoke to the Building
Inspector and Sanit9rian and had obtained an okay on the sewer system and
water system to be used. Upon applying for the permit it was noted that the
area is zoned R -2j although this is not specifically covered in the Code,
individual trailers have generally been thought to be okay only for Unclassified
areas. The McGraths purchased this lot in Miller Point as they are presently
located in ACS Trailer Court and wish to have a place to live while building
a house. Construction has been started on the Septic tank and well which
will be permaneori and used for the residence. It was noted that trailer permits
are issued only a temporary year to year basis anyway and are revocable in
sixty days if anything goes wrong. During the discussion on this several
items were brought out; the fact that there might be objections from the
people in the surrounding area and the fact that this would possibly come up
in the future. However it was pointed out that people need to be encouraged
to build here in Kodiak and make a permanent home. To refuse this permit
would only add to the burden of building and further delay the construction of
a permanent residence. It was thought that by requesting that a bond be posted
to insure the removal of the trailer by a certain date would be the way to
handle this particular situation or others in the future. However, it was
again noted that the permits are temporary anyway and the bond would not be
necessary. The new zoning otdinance should probably make provisions for
individual trailers to be permanently placed in some zones. 1r1r. Fuller noted
that when the lots were sold there was no stipulation as to amount of money
that must be put into a building and same of the trailers look better than the
L.
2EMBLY MEETING - MAY 16; 1969
0
2
houses. in some cases. lirs. iicGrath said that construction has already begun on
the septic tank and the well and that as her husband will be out of town at the
time the ACS Trailer Court will close they would like to be on their own property
by June 1st. The construction will be completed at that time for the well. Mr.
Naughton moved that the Assembly approve the temporary trailer permit on Miller
Point, 2nd Addition, Bik 1, Lot 9 seconded by firs. Springhill. Mr. Barr felt that
there should be a definitet -off date that the trailer would be removed from the
property. The question was called for and the motion . passed with a three to one
vote, as follows: firs. Springhill --- YES; Mt. Arndt - YES; Jir. Naughton -- YES;
Mir. Barr -- NO. It was suggested that Planning & Zoning should discuss this and
establish a policy on trailers being placed in R -2 Zones.
C. Request from City of Kodiak for Title to Lot 3, U.S. Survey 3467 and Portion of
U. S. Survey 3469. The letter from the City was a result of a letter received from
State Division of Lands inquiring if the Borough had any objections to the transfer
of the title to the City. The City's letter stated that there was a municipal
facility on land not belonging to the City and the City felt that the land should
also belong to the City. It was stated that when the Boroughs interest is given
up it should be clear that any costs incurred for repairs or upkeep would not
revert back to the Borough. Mr. Barr brought up the question of the access road
into Island Lake and also Kodiak Superior Disposal Company. Further noted that
the present right-of-way has not been open for seven years as it was re- aligned
to present situation. Mr. Gcodman stated that there is a responsibility to provide
access but the City does not want to designate at this time a definite right -of -way.
Mrs. Springhill moved that the Borough voice no objection to the City of Kodiak
obtaining title to Lot 3 of U. S. Survey 3467 and a portion of U. S. Survey 3469,
secondedl by Mt. Naughton. Mr. Arndt suggested that more study be done on the
road acr.ess and Mr. Barr suggested that perhaps a condition could be set that the
access would bo equivalent to aRwidy provided. Mrs. Springhill amended her
motion to read: "Providing access'to the existing access is provided," with the
approval of Mr. Naughton. Li otion carried by unanimous voice vote.
1969
D. Nick Wolkoff, Request fora Tax Deferment, Townsite Addition, Lot 4, Block 1.
The forms are in order and the rec does comply with the Ordinance 68 -29 -0.
Mrs. Springhill moved to grant theq.6x deferment for Nick Wolkoff, Townsite Addition,
Lot 4, Bik 1, seconded by ir. Naughton. It was explained for the benefit of the
people in the audience that the taxes on the property wpxe not forgiven but only
deferred and that the heirs would - pay the back taxes. This'is to allow the senior
citizen a place to live without worry of taxes. Mr. Naughton asked if everything
had been done to make the people applying for the deferment aware of exactly what
was being done. It was noted that the people have been informed of all aspects
of this deferment. The question was called for and the motion passed by unanimous
roll call vote.
VI PUBLIC HEARINGS - NONE
VII P &Z I'fl ES - NONE
VIII OLD BUSINESS
A. Legal Opinion from Roy Madsen re Purchase of Land for "I` Street Playground.
The opinion was read stating that first and second -class boroughs have the power
to acquire and dispose of real and personal property in the manner provided for
first-class cities under AS 29.10.132 and Section 07.15.030 provides that first -
class and second -class boroughs may incur indebtedness in the same manner and to the
same extent as first -class cities. Further that although the purchase of lands by
the Borough is not required to be by ordinance it would appear that from the actions
of the Assembly and the adoption of this ordinance, the purchase of the lots for
the "I" Street Playground would be a valid and binding obligation of the Borough.
The Borough Chairman requested the Assembly to designate what fund this money
should be charged to, if not the ACS Trailer Fund then what fund? Mts. Springhill
again stated the City's pcaition in objecting to the use of ACS Funds for the
purchase of these lots as it should come from the land sales. idr. Barr stated
that the ist payments could be taken from the ACS Funds and the remainder from
another source next year. It was noted that the money is presently in a savings
account drawing interest. Mrs. Suryan stated that she had gotten an opinion from
Mr. Vogt and would have this in writing to the fact that the purchase of the lots
was illegal. By taking this money from another source it would only mean that
some other project would suffer. She further stated that one does not purchase
land or an item of any kind in the hopes that the Assembly would pass it after the
fact. She further felt that this project of the "I' Street Playground was rather
dubious in the first place. Mrs. Suryan further stated that there should be some
way of keeping this fry happening again. It was noted that the actual money
spent is $13,900; there was actually an exchange of checks as the taxes on the
land xlere paid by the Cessnas and Pratts. i4r. Schoon mentioned that this land
had originally been designated for a track and athletic field and as it stood
Assembly meeting -- May 15th, 1969 3
there was not enough land for the track field so the land was useless until more
land could be purchased. This had been discussed time after time by the Recreation
and Park Advisory Board and the Borough had been advised to purchase the land, it
has just taken this long to accomplish this. Rev. Childs noted that this was true
the track and athletic field and that the concept of the playground came along in
the middle somewhere. Firs. Suryan stated that the only way to change things
would be to have a congressional investigation or a law suit.
Mrs. Springhill voiced the thought that the main thing now is that the children
do not have a place to play and at the rate things are going will not have by this
summer It was noted that all that is needed to start the playground or athletic
field are plans. Rev. Childs noted that tentative schematic plans have been submitted
and all that is needed is for the school board to work on these plans. Mr. Sargent
suggested that as the new highway will be going through soon perhaps some of the
fill material can be obtained from the highway department and used to improve the
lots. Someone pointed out that there is land between the vocational school and
Mill Bay Road that could perhaps be obtained for a playground. After further discussion
on the source of the money to pay for the lots and the collection of the funds,
Mr. Arndt moved that the Borough use the money from the ACS fund to pay the $13,900
and that the Borough Chairman be instructed to tueget :arcofint to replace
that:fund in next..year's budget, seconded by Jr. Naughton. The remaining Payments
on this land will be a 1969 -70 budget item and the Assembly can designate where
these payments will come from when setting up the 1969 -70 budget. The question
was called for and the motion passed three to one with the ro1].call vote as
follows: i it . Arndt - YES; Mt. Naughton - YES; Mrs. Springhill - NO; Mt. . Barr - YES.
It was suggested that perhaps the City Council should be contacted -1 0 see if these
funds will be used for the planning stage of the field. The next step is the
planning and we should know in advance if the City Council has any c5i5jections.
A letter will be written requesting this information.
�• Le9a1 Opinion re Purchase of Borough Fire Truck. The opinion received from the
Borough Attorney was read which stated that t Borough Assembly had the authority
to create a fire protection diG1rice by emergency ordinance and therefore its
action in aut1 .4ing the indebtedness for the purchase of the fire truck cannot
now be questioned. However, rather than authorizing this borrowing of the money
by resolution this should have been done by ordinance and therefore an ordinance
ratifying this should be adopted. Mr. Arndt moved that the Borough Chairman have
the Borough Attorney draw up an ordinance ratifying this resolution borrowing money,
seconded by Mrs. Springhill, passed by unanimous voice vote.
C. Bell's Flats Land Sale. The Land is ready to be sold and the Assembly's desire
in this matter was requested, whether to proceed with the sale or to delay it. Mr.
Best had written a letter to I -ir. Boyko which proposed that a certain amount of the
land be set aside for the native claims or held in reserve . This has been discussed
with harry Carter and he thought this was a good idea but did not want to enter into
a formal agreement prior to official settlement of the land claims. It was also
suggested that perhaps 1/5 of the receipts could be held in reserve rather than lots.
I.7r. Bresie again stated that he had written letters concerning the selling of the
land prior to the land claims and he would write again to Washington, D. C., as it
was his understanding that no land could be sold until; the claims were settled and
further that no warranty deed could be obtained. However, it was pointed out
that warranty deeds are not given by the State only Quit -Claim deeds which means
that the State gives up any claim that it might have to the land. After much discussion
on the method of the sale of the land, Mr. Arndt moved that the State Division of
Land be directed to put this land up for sale and that 20% of the proceeds be placed
in escrow funds, seconded by Firs. Springhill. The motion passed by three to one
vote with the roll call vote as follows: Mr. Arndt - YES; firs. Springhill - YES;
Mr. Naughton NO; Mr. Barr - YES; Mir. Large asked if the appraisals have been
received as yet and requested that a copy be mailed to him when they are in the
Borough Office. Copies will also be sent to Hr. Setter; iir. Brasie and others
that are interested in the area.
D. Staff Quarters: A review of the last meetings was made and noted that the
Assembly had voted to proceed with negotiating with Mr. Schoon if he had received
his certificate of registration by this meeting. It was noted that a telegram had
been received giving Mr. Schoon's registration #69 -70 -0806. The Borough Chairman
recommended that the Assembly authorize a lump sum for the hospital and have the
Hospital Board, Grey Nuns and Borough Chairman meet and negotiate on the plans.
Ntgfc Springhill moved that the Borough Chairman negotiate a contract , maximum
figure of $60,000 with Derald Schoen for the Staff Quarters and that the contract
be brought back to the Borough Assembly for its approval at a Special Meeting,
seconded by Mr. Naughton, motion passed by unanimous roll call vote.
BOROUGH ASSEMBLY MEETING - MAY 15, 1969
4 4
IX NEW BUSINESS
A. First Reading Ordinance 69 -8 -0 Amending Borrow Site Ordinance, read by title
only. It was suggested that the Assembly read and pass this in the first reading
and make a thorough study of the proposed amendments before the next reading and
public hearing. A.nbther need to :added-that of requiring bond to be
posted to insure that clean -up will be accomplished. Mr. Ed. Buchwald has been
asked to check into this particular part of the ordinance. Another thing, the
word "bail sites" does not convey the meaning and it should be clarified. A copy
of the new ordinance along with the original ordinance will be mailed to interested
parties. lIrs. Springhill moved for the adoption of Ordinance 69 -8 -0 amending the
Borrow Site Ordinance in the first reading, seconded by Mr. Arndt. Motion passed
by unanimous voice vote.
B. Penalty and Interest Payments. Several letters were written to dOermine how
this was handled in other areas. This is something that is taken care on the local
level and is not governed by the State Statutes. The Borough Assembly adopted the
policy some time ago that the Borough would keep all penalty and interest payments
on delinquent taxes, which would cover the added cost that results from the collection
of these monies. It was recommended by the F ornugh Chairman that a policy should
now be adopted to return to the City pro ra +a ereson taxes collected within the city
limits, and retain the penalty to cover -the added cost. At. Goodman stated that
the City feels that the penalty and interest should bee'split on a pro rata basis since
they felt that there was little additional cost involved in collection of
penalty and interest. The disposal of land on the foreclosure list was also discussed
whether to sell the land or have the City and Borough each have an option to buy
the land. It was pointed out that if the land is sold several items will come off
the top, attorney's fees, court costs and then the remainder could possiblY be
split between the city and Borough. Mrs. Springhill moved that a polio be set
that the Penalty and Interest payments be returned to the City on a pro -rata basis
motion died for lack of a second. Mr. Naughton moved that the Borough policy
be'_ set with regard to the Penalty and Interest Payments that the Interest on
delinquent taxes collected from within the city _limits be returned to 4h--‘-1ty with
the taxes collected from the City on a pro -rata basis but that r.clolty be reserved
in the Borough as the collection agency, seconded by Mr. Arndt, motion passed by_
three to one roll call vote as follows: Mr. Arndt, YES; Mr. Naughton -YES; 141
Barr - YES; Mrs. Springhill - NO: After discussion on how best to handle land
on the foreclosure list and the following points brought out - -�cn may have an
()Won on purchase of the land; if the option is not tai = - I up and the land is
designated for public use both governing bodices cu1d forego taxes on the land.
It was decided that this should } et- ,idica further and placed on the agenda for
June 5th.
C. Selection of Auditor for Fiscal Year 1968 -69. The City in the past has used
different firms for the auditing, however the firm of Hedla, Sherwood and Yerion
has been used by the Borough for the past few years. This firm is familiar with
the books at the Borough and it was suggested that the Borough continue to use this
firm. Mrs. Springhill moved that the Assembly select the Firm of Hedla, Sherwood
and Yerion for the auditors for the fiscal year of 1968 -69, seconded by Mr. Naughton.
Motion passed by Unar.iirc:us voice-vote. It was noted that a letter will be sent
requesting an estimate fcr the work.
F. Ordinance No. 69 -9 -0 Approving Loan to Borough, First Reading, read by title
only. P'Irs. Springhill moved for adoption of Ordinance 69 - - in the first reading
approving loan to the Borough, seconded by Mr. Arndt. Motion passed by unanimous
roll call vote.
F P14.
E. Tax Adjustments; ready numbers. Mrs. Springhill moved for approval of tax
adjustments on FR -68 -4; Fe 68 -34 FP 68 -35 and P68 -49, seconded by Mr. Arndt, motion
passed by unanimous roll call vote.
F. Letter from Ivor Schott re Agreement for Use of Renovated Bldg at Old HarBOR.
The Agreement was read stating that the basic rental fee would be $125 per month
for nine months; further all maintenance cost of the classroom to be borne by the
licensee. Mrs. Springhill moved for approval of the agreement for the use of the
renovated classroom community Building - Old Harbor, seconded by Mr. Naughton,
It was suggested that the Borough Attorney check the agreement to see that it is
a standard agreement. The question was called for and the motion passed by unanimous
roll call vote.
Borough Assembly Meeting - May 15, 1969 5
G. Approval df Architect for High School, Ouzinkie. The School Board would like
to have the Assembly designate the Firm of Crittenden, Cassetta, Wirum and Cannon
as the architects for the new high school and the school at Ouzinkie. Mrs. Springhill
moved for the approval of the fine Crittenden, Cassetta, Wirum and Cannon as
architects for the new high school and Ouzinkie school, seconded by Mr. Arndt,
motion passed by unanimous roll call vote.
X CHAIRMAN'S REPORT
A. Letter from Mr. & Mrs. Harold Pratt re Trailer Court, stating that according to
an improvements agreement signed November 12, 1968, certain improvements were to have
been accomplished by 1 June, 1969. however, to date the Pratts have been unable to
obtain a loan to permit them to improve the court. They were therefore submitting
several alternatives; 1) Sell the court; 2) Close the court and sell the land;
3Y Appeal for an extension and use a step program to be completed within five years
or 4) Set up a cooperative and sell to the tenants who want to stay. Since this
letter arrived at the office too late for copies to be made a short recess was
declared to give the members of the Assembly an opportunity to read the letter.
Meeting was called back to order at 11:50. Mrs. Springhill moved that the Assembly
approve in principle Step #4 as set forth in the letter submitted by Harold and
Bertha Pratt and if there is an alternate and feasible proposal submitted before the
Special Meeting that this should be considered also, seconded by Mr. Naughton.
Mr. Barr abstained from voting as he is drawing plans for the court. Motion carried
with three affirmative votes, one abstaining.
B. 1968 -69 deficit in the School Budget It was noted that recently word has been
received that there would be a deficit in the overall School Budget. Mr. Schott
has been asked to please advise the school board to make the proper cuts in order
to cover this deficit in the new budget. This deficit was due to the fact that less
revenue was received than anticipated; the fact that the enrollment was down by about
125 pupils this year and also the teacher allotment was not cut. A good deal of the
substitute money was used this year as many teachers were ill. This deficit figure
will have to be carried forward on next year's budget. A letter will be sent
to the School Board so that they are aware that this decision comes from the
Borough AsseMYly and not just the office of Mr. Schott. The Board should also be
informed that they should use the shared revenue to cut the local support. These
new figures will be needed no later than May 25th and then a special meeting will
be called for review of the 1969 -70 Borough Budget.
XI ASSFMBLY COM ENTS - NONE
XII AUDIENCE COMMENTS -
A. Cost of Schools - Mr. J. L. Stansbury stated that he has become more and more
concerned with the costs of schools in this area and would like to Aee the Borough
take steps to see that tle;.same situation did not accur as happendd in Akhiok.
It was noted that this situation has been reviewed and it appears that no one
performed very well. Further noted that plans are to be submitted with the possibility
of using the plans for a pre -cut construction. The plans will not be accepted if
the maximum cost is doubled, they will be re -drawn until the cost is brought down
to one that we can handle. It was thought that perhaps a lump sum could be
established N.*ith a percentage of savings over cost. It was pointed out that steel
buildings should possibly be considered. The cost should not be more than $25.00
per square foot on the school building; the residence cost will be about $35.00 per
square foot.
XIII ADJOURNMENT
A. Meeting was adjourned at 12;25 a.m.
A'ri'.EST:
APPROVED:
6 2 76oug airman
FIRE DISTRICT ADJUSTMENTS FOR MAY 15, 1969
ADJUSTMENT NO. NAME AMOUNT REASON
REAL PROPERIY
FR68 -4
PERSONAL PROPERTY
FP68 -34
Matthew, Philip J. -$ 8,47
Naughton, Albert C. -$ 5.80
This parcel should not be
on the tax roll until 1/1/70.
The Borough owned it on the
assessment date - 1/1/69.
This property was moved out of
the fire district in March,
1968, and, therefore, should
not be included in the fire
district tax roll.
FP68 -35 Padilla, Ray & Dolores L. -$ 2.07 An incorrect value was picked
up from the personal property
return for use on the fire
roll.
ADJUSTMENTS FOR MAY 15, 1969
P68 -49 Jackson, T. T. -$$3j % The property included on
this personal property Yeturn
had already been filed on
another return of Mr. Jackson's