12/06/19781 1 S 7
KODIAK ISLAND BOROUGH SPECIAL ASSEMBLY MEETING - DECEMBER 6, 1978
(A Verbatim Record is on File in the Clerk's Office)
I CALL TO ORDER
The meeting was called to order by Mrs. Wallin, Mayor, at
6:30 P.M. in the Assembly Meeting ::oom.
II ROLL CALL
Present Absent
Hr. Wi liam L. Fearn Dr. MiMichael Emmick (excused)
Mr. Arnold T. Hansen
Mr. Edward Jack
Mrs. Sandra Kavanaugh
Mr. Dan Ogg
Hr. James Peotter
Hrs. Betty J. Wallin, Mayor
A quorum was established.
III ITEMS OF BUSINESS
1. Public :searing: Ordinance 478 -28 -0 Providing for Repeal
of the /.d Valorem Tax on Personal Property. [ors. Kavanaugh
moved for acceptence of Ordinance W78 -28 -0. Seconded by Hr.
Ogg. Mayor Wallin closed the meeting and opened the public
hearing. There were no comments for the ordinance.
Jeff Collins; Stated that a substitute tax should be taken up
first before acting on the repeal of the ad valorem tax.
Mayor Wallin closed the public hearing; reconvened the regular
meeting. ars. Kavanaugh moved that Ordinance 478 -28 -0 be
tabled until the regular meeting, December 7th. Seconded by
Ur. Peotter. Motion carried 4 -2 with Ur. Hansen and Mr. Ogg
casting NO votes.
2. Public Hearing: Resolution °78 -71 -2 Authorizing a
Referendum for the Establishment of a Raw Resources Sales Tax.
: Kavanaugh moved for adoption of Resolution #78-71-R.
Seconded by Mr. Hansen. Mayor Wallin closed the meeting and
opened the public hearing.
Mr. Hansen asked if the borough had the authority to collect
anything but a sales tax. Counsel had stated they could
collect' only sales tax.
Okey chandler: Spoke in favor of the resolution. Feels this
is a very good alternate to the personal property tax and that
it would also apply to gravel, lumber and anything that comes
from the earth.
Alvin Burch, Alaska Shrimp Trawlers: Spoke against the
reso ution. Stated that in Dutch Harbor a few of the canneries
pay the tax, but in most instances the boats pay it. Feels
this is a direct tax against the fisherman and is not equitable.
Bill Alwert, Buccaneer: Spoke against the resolution.
Mayor Wallin pointed out that the Kodiak Island Borough would
not derive any taxes from any oil that might be found here.
Mr. Denslow stated that the raw resource tax is a sales tax.
Sue Painter: Spoke against the resolution.
Oral Burch, Dawn and Dusk: Spoke against the resolution.
Oscar D son: Spoke against the resolution. Would like to
see Lan or storage and docks built.
Peggy Cross, Captain Joe: Would be willing to pay raw resource
tax if the fishermen were exempted from all other taxes.
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KIB ASSEMBLY SPECIAL MEETI1G- DECEMBER 3, 1978 PAGE 2
Mayor Wallin closed the public hearing' reconvened the meeting.
Mr. Jack stated he could not vote for the raw resource tax.
Mrs. Kavanaugh moved to table Resolution #78-71-R to the
regular meeting, 1ecember 7th. Seconded by Mr. Fearn. Motion
failed 3 -3 with Mr. Hansen, Mr. Jack and :r. Ong casting NO
votes. tir. Peotter stated thereare a number of misconceptions.
The only way this tax could be levied would be the result of
the borough residents passing this by vote. He explained the
reasoning for Ordinance X78 -28 -0 and Resolution 78 -71 -R.
Mr. Dyson stated he is against this going to a vote because
it would split the community and cause hard feelings. Mayor
Wallin suggested waiting with this issue until the budget for
the coming year is completed.
Bill Berestoff: Stated he is against the resolution; he cannot
stand anot er tax.
firs. Kavanaugh moved to table Resolution 578 -71 -R. Seconded
by Mr. Peotter. Motion carried 4 -2 with Mr. Hansen and r'r.
Ogg casting :dO votes. Mrs. Kavanaugh moved to table the
motion in order to bring back on the table the first tablet
motion. '.'ayow Wallin called a recess at 7:35 P.M. Meeting
reconvened at 7:45 P.M.
Mrs. Kavanaugh moved to reconsider the motion to table
Ordinance X73 -28 -0 until December 7th meeting. Seconced by
Mr. Jack. Motion carried by unanimous roll call vote. gr. Ogg
felt this is an unfair tax. Original motion on Ordinance
1178 -28 -0 failed 1 -5 with Mr. Fearn. Mr. Fansen, Pr. Jack, Mrs.
Kavanaugh and Mr. Peotter casting JO votes
Mrs. Kavanaugh moved to remove from the table Resolution
#78-71-R. Seconded by Mr. Hansen. ''otion carried by unanimous
roll call vote. Mr. Peotter asked if the borough could have
the power to levy a sales tax if it were not implemented.
Mr. Denslow stated he felt there is technically a point of
law here as to the borough retaining the ability to impose
a two percent sales tax at a future date. Original motion on
Resolution 578 -71 -P failed 1 -5 with 'M:r. Fearn, Mr. Hansen,
Mr. Jack, Mrs. Kavanaugh and Mr. Ogg casting 90 votes.
IV ADJOURNMENT
The meeting was adjourned by Mayor Wallin at 8:00 P.H.
ATTEST:
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