07/06/1995 RMKODIAR ISLAND BOROUGH
Regular Assembly Meeting
July 6, 1995
A regular meeting of the Kodiak Island Borough
Assembly was held July 6, 1995 in the Assembly
Chambers of the Kodiak Island Borough Building,
710 Mill Bay Road. The meeting was called to order
at 7:30 p.m.
Presiding Officer Monroe led the Pledge of
Allegiance.
There were present:
Mary Monroe, Presiding
John Burt
Jack McFarland
Gary Stevens
Regular Assembly Meeting
July 6, 1995
Robin Heinrichs
Mike Milligan
absent:
Suzanne Hancock
comprising a quorum of the Assembly; and
Jerome Selby, Mayor
Donna Smith CMC, Clerk
Assemblymember Hancock was out on vacation and asked
to be excused.
McFARLAND, moved to excuse
seconded by MILLIGAN Assemblymember Hancock.
VOTE ON MOTION TO EXCUSE
MOTION CARRIED Unanimous voice vote
APPROVAL OP AGENDA
HEINRICHS, moved to approve the
seconded by McFARLAND agenda.
VOTE ON MOTION TO APPROVE
MOTION CARRIED Unanimous voice vote
REGULAR MEETING
ROLL CALL
APPROVAL OF
AGENDA
Volume XX
Page 104
APPROVAL OF MINUTES
A. K.I.B. Assembly Meetings
1995.
MILLIGAN,
seconded by STEVENS
VOTE ON MOTION TO APPROVE
MOTION CARRIED
AWARDS AND PRESENTATIONS
A. Employee of the Month
of June 1 and June 15,
moved to approve the
minutes of June 1 and
June 15, 1995.
Unanimous voice vote
Mayor Jerome Selby presented the Employee of the
Month Award to Carri Satterthwaite, clerk /cashier at
the Mental Health Center.
CITIZENS' COMMENTS
A. Agenda Items Not Scheduled For Public Hearing
None.
B. Items Other Than Those Appearing on the Agenda
None.
COMMITTEE REPORTS
Jeff Knauf, Planning and Zoning Commissioner, was
available to answer questions.
Assemblymember Heinrichs participated in a Coastal
Zone Management Council teleconference regarding the
Mt. Roberts Tramway in Juneau to conclude review of a
petition to present to the court system.
Presiding Officer Monroe, Kodiak College Council
representative, reported that the Council did not
meet during the summer months.
Assemblymember Burt reported that the group fighting
Individual Fishing Quotas (IFQ's) met and discussed
possible travel to Juneau or Washington D.C. He felt
the group had good support and he hoped for continued
support because the fight was costly.
Regular Assembly Meeting
July 6, 1995
APPROVAL OF
MINUTES
AWARDS AND
PRESENTATIONS
EMPLOYEE OF THE
MONTH
CITIZENS'
COMMENTS
COMMITTEE
REPORTS
Volume XX
Page 105
PUBLIC HEARING
All ordinances and resolutions presented at this
meeting were introduced by title only and copies made
available to the public.
A. Alcoholic Beverage Control Board Application for
a Restaurant Designation Permit at the Shaman
Grill, 3420 Rezanof Drive East. Applicants:
Tom and Mary Anne Hendel.
MILLIGAN,
seconded by McFARLAND
VOTE ON MOTION
Ayes:
Noes:
Absent:
MOTION CARRIED
Regular Assembly Meeting
July 6, 1995
moved to voice non -
objection to the ABC
Board application for a
restaurant designation
permit to allow access
of persons under 21
years of age on the
licensed premises for
the purpose of dining
and persons under the
age of 19 for
employment at the
Shaman Grill, 3420
Rezanof Drive East.
Mayor Selby said the application was before the
Assembly to hear public comment.
Presiding Officer Monroe announced that 216 public
hearing notices were mailed; 2 returned voicing non -
objection. She called for public testimony; hearing
and seeing none, she reconvened the regular meeting.
Burt, Heinrichs,
McFarland, Milligan,
Stevens, Monroe
None
Hancock
Unanimous
B. Ordinance No. 94 -10I Amending Ordinance
No. 95 -10 Fiscal Year 1995 Budget to Reflect
Year -end Adjustments.
Presented for consideration was Ordinance No. 94 -10I
that, if adopted, amended the fiscal year 1995 budget
to reflect year -end adjustments.
PUBLIC HEARING
ABC BOARD
APPLICATION FOR
RESTAURANT
DESIGNATION
ORDINANCE
NO. 94 -10I
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Page 106
STEVENS, moved to adopt
seconded by McFARLAND Ordinance No. 94 -10I.
Mayor Selby reported that $80,000 of excess severance
tax was received and would be used to help defray
legal expenses. He outlined that $13,000 was
transferred from the Assessing Department to cover
data processing costs; $8,500 was transferred from
general administration to education to reflect the
actual audit costs for the next year; $5,000 was
transferred from Borough buildings and grounds to the
schools for an insurance adjustment that reflected
actual costs; $60,000 each was transferred from the
water and sewer funds to cover the Otmeloi contract;
and $80,000 was set aside for future replacement of
the 400 computer system.
McFARLAND,
seconded by STEVENS
moved to amend
Ordinance No. 94 -10I by
substitution.
Presiding Officer Monroe called for public testimony;
hearing and seeing none, she reconvened the regular
meeting.
In response to Assemblymember Burt, Mayor Selby said
the majority of the severance tax increase was from
logging but some was from fish revenues. He noted
that the original estimate of severance tax was
conservative. He added that the $80,000 was a
charge -back to the Data Processing Department for
actual time spent on computers.
At questions raised by Assemblymember Milligan, Mayor
Selby said the original estimate for legal services
was optimistic and the Shuyak Island sale had a big
impact on the total costs. He agreed that some
Boroughs had a staff attorney but noted that with
expenses of less than $300,000 a year, it was not
wise to hire a staff attorney. He added that the
Borough was able to hire expertise from different
attorneys that one individual attorney could not
offer.
Assemblymember McFarland contended that funds
garnered through negotiations outweighed legal fees.
Presiding Officer Monroe agreed noting that an
attorney on staff would require office space, staff
support and benefits.
Assemblymember Heinrichs asked for clarification
about the $80,000 charge -back to the Data Processing
Department. Mayor Selby explained that the funds
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 107
would fully fund the depreciation account when added
to the $40,000 funded at the beginning of the year
for a total of $120,000.
VOTE ON MOTION TO AMEND BY SUBSTITUTION
Ayes:
Noes: None
Absent: Hancock
MOTION CARRIED Unanimous
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes:
Noes: None
Absent: Hancock
MOTION CARRIED Unanimous
HEINRICHS,
seconded by MILLIGAN
Regular Assembly Meeting
July 6, 1995
Heinrichs, McFarland,
Milligan, Stevens,
Burt, Monroe
McFarland, Milligan,
Stevens, Burt,
Heinrichs, Monroe
C. Ordinance No. 95 -05 Determining the Disposition ORDINANCE
of Tax Foreclosed Properties for 1991, 1992, and NO. 95 -05
Previous Years.
Presented for consideration was Ordinance No. 95 -05
that, if adopted, determined the disposition of tax
foreclosed properties for 1991, 1992 and previous
years with terms of the sale or trade subject to
approval by resolution of the assembly.
HEINRICHS, moved to adopt
seconded by MILLIGAN Ordinance No. 95 -05.
Mayor Selby enumerated the parcels for public sale
and those identified as original Kodiak National
Wildlife Refuge lands. He said the Refuge parcels
were acquired by the Koniag Native Corporation,
subsequently deeded to the Larsen Bay Tribal Council,
and then conveyed to share holders. He suggested
that those parcels be sold back to the Refuge. He
noted that parcels without public purpose would be
sold at public auction.
moved to amend
Ordinance No. 95 -05 by
substitution.
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Page 108
Presiding Officer Monroe opened the public hearing.
Assemblymember Milligan asked about the substituted
version. Mayor Selby explained that four parcels
were removed because the owners paid the taxes owed.
Mike Rrechan referred to a parcel owned by a relative
whose estate had not been settled. He opposed a sale
to the Refuge because he felt over half of the state
was owned by government. He was of the opinion that
government should buy land at public auction. He
felt that negotiating with the federal government
violated the free enterprise system.
Presiding Officer Monroe closed the public hearing
and reconvened the regular meeting.
Assemblymember Burt advocated government selling land
rather than acquiring land.
BURT, moved to amend
seconded by MILLIGAN Ordinance No. 95 -05 by
replacing the first two
sentences in Section 4
with the words: "All
land would be sold at
public auction ".
Presiding Officer Monroe questioned the legality of
the amendment. Mayor Selby said it was appropriate
to delete sections two and four, and add to section
three the words: "the properties are not required for
any public purpose and shall be sold at the next
public land offering ".
When Assemblymember Burt said he was concerned about
who would determine what was public, Mayor Selby said
he was not debating the motion but suggesting
appropriate wording.
BURT,
MILLIGAN
BURT,
seconded by MILLIGAN
Regular Assembly Meeting
July 6, 1995
motion withdrawn
concurrence of second
moved to amend
Ordinance No. 95 -05 by
deleting sections two
and four, and replacing
the first sentence in
section three with the
words: "these
properties are not
required for any public
purpose and they shall
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Page 109
be sold at the next
public land offering ".
At questions raised by Assemblymember Stevens, Mayor
Selby said the terms of sale to the Refuge would be
at the appraised full market value with the proceeds
remanded to the previous property owner. He added
that property sold at public auction went to the
highest bidder with a minimum bid determined by the
amount of taxes owed. In that scenario, he said,
there was the potential that the previous property
owner would not receive any funds.
Assemblymember Burt wanted property owners to build
structures and set a tax base for fresh tax revenue.
At the request of the Assembly, Jeff Knauf, Planning
and Zoning Commissioner, reported that he traveled to
Larsen Bay and spoke with property owners. He felt
the Assembly recently sent a strong message about
paying taxes because four property owners paid their
taxes. He did not feel it was in the people's best
interest to take their land just because they live a
subsistence life style without a measurable economy.
He thought the Assembly would find land sold to the
Refuge would be locked -up in the future with access
to hunting and beach areas restricted. He spoke with
Jay Ballenger, Refuge manager. He thought to
postpone the question because it was a remote area
that required a higher level of review.
Assemblymember Burt queried if Commissioner Knauf was
suggesting extending or forgiving the taxes because
there were rules and regulations in place and the
need was to treat everyone the same. Commissioner
Knauf said there was an obligation to pay taxes when
due but he felt the property owners did not have a
grasp of the tax process and a wake -up call was
needed. He thought once government took control of
the property, the property would never be returned to
the people. He felt access across private property
was easier than across government property.
Assemblymember Milligan did not share Commissioner
Knauf's perception that property owners were unaware
of the tax process. He spoke with residents and
understood that property owners attempted to secure
loans but were denied because of clouded titles.
When Assemblymember Milligan asked if privatizing
land would limit access, Commissioner Knauf said
absolutely not in that access was easier if property
was private, Native corporation, borough or city
owned than if federal owned.
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 1 10
In response to Assemblymember McFarland, Commissioner
Knauf said he felt the level of management in the
Refuge would remain high regardless of the number of
cabins or people recreating on adjacent privately
owned property. He noted that a special use permit
from the Refuge was needed to conduct any type of
commercial operation on Refuge land.
Assemblymember McFarland said it appeared that some
parcels had important habitat and were directly
necessary to the Refuge. He thought the valuable
property that enhanced the quality of life on Kodiak
would be lost.
Commissioner Knauf said insufficient information was
available for the Commission to make a decision. He
agreed that some of the property may be necessary but
he felt the Commission had not exhausted all
mechanisms to make a recommendation. He spoke with
Bud Cassidy, Resource Management Officer, and
understood the issue was to set policy, but policy
was not addressed.
Assemblymember Milligan spoke with Mr. Ballenger and
understood the Refuge could not approach property
owners prior to foreclosure because of clouded
titles. He did not see the public gaining more
access by privatizing land.
VOTE ON MOTION TO AMEND
Ayes: Burt
Noes: Milligan, Stevens,
Heinrichs, McFarland,
Monroe
Absent: Hancock
MOTION FAILED 1 Aye, 5 Noes
VOTE ON MOTION TO AMEND BY SUBSTITUTION
Ayes:
Noes: None
Absent: Hancock
MOTION CARRIED Unanimous
Regular Assembly Meeting
July 6, 1995
Stevens, Burt,
Heinrichs, McFarland,
Milligan, Monroe
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Page 111
McFarland,
seconded by STEVENS
Regular Assembly Meeting
July 6, 1995
moved to amend
Ordinance No. 95 -05 by
replacing the word:
"should" with the word:
" may" in the 10th and
12th whereas; deleting
the 9th whereas;
deleting sections two
and three; renumbering
section four to section
two; and adding section
three with the words:
"That prior to any sale
of property, whether
negotiated or other,
the list of properties
will revert back to the
Planning and Zoning
Commission for a formal
recommendation on a
site - specific basis to
determine the nature of
the property with
respect to addressing
the value to the Kodiak
Island Borough, the
Refuge, and the general
public ".
Assemblymember McFarland felt the need to stop the
piracy that occurred when property owners sold
property for the tax due. He wanted to protect the
Borough and residents and suggested the Commission
review the information and make a recommendation.
Assemblymember Burt felt that property held in
private hands was an important part of democracy.
In response to Assemblymember Stevens, Mayor Selby
said the clouded titles resulted when Larsen Bay
Village Corporation and Koniag Corporation merged.
He said a reversion clause dictated that when the
merger was dissolved the property would revert back
to Larsen_Bay Village Corporation. He noted that the
reversion clause was eliminated in the foreclosure
process. He added that without section 2, the piracy
would not be stopped and the last whereas was
significant because the two groups of parcels were
identified. He suggested adding Assemblymember
McFarland's amendment as section 5.
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Page 112
Assemblymember McFarland felt it was prematurely
depicting certain properties and changing the word
"shall" to "may" underlined his intent to allow the
properties to exist as they were.
Mayor Selby agreed -that changing the word in the
whereas stated the intent of the Assembly but the
word "shall" was needed in section 2 because it
specifically directed staff. He added that
delineating the two types of parcels protected them
from piracy.
Assemblymember Heinrichs agreed with Mayor Selby that
the public designation was protection. He thought a
recommendation from the Commission was needed.
McFARLAND,
STEVENS
McFARLAND
seconded by STEVENS
HEINRICHS,
seconded by MILLIGAN
Regular Assembly Meeting
July 6, 1995
motion withdrawn
concurrence of second
moved to amend
Ordinance No. 95 -05 by
replacing the word:
"should" with the word:
"may" in the 10th and
12th whereas and adding
section 5 with the
words: "Prior to any
sale of property,
whether negotiated or
other, the list of
properties will be
reverted back to the
Planning and Zoning
Commission and a formal
recommendation will be
made by the Planning
and Zoning Commission
on a site specific
basis where the nature
of the property, with
respect to the value to
the Kodiak Island
Borough, the Refuge, or
the general public,
will be addressed ".
moved to amend
Ordinance No. 95 -05 in
section 2 to delete the
word: "and" and adding
after "KNWR" the words:
"or for the eventual
acquisition by the
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Page 113
Assemblymember Heinrichs felt the amendment clarified
that it was not a foregone conclusion that the
property would go to the Refuge.
VOTE ON MOTION TO AMEND AS AMENDED
Ayes:
Noes: None
Absent: Hancock
MOTION CARRIED Unanimous
VOTE ON MOTION TO AMEND
Assemblymember Heinrichs felt that once the review
was complete, those properties determined not of
public interest could be sold to general public.
Assemblymember Burt was curious how the Commission
would determine values.
Presiding Officer Monroe thought the Coastal
Comprehensive Plan would provide insight.
Assemblymember McFarland felt the determination was
up to the Commission. He thought it was obvious that
a parcel with a small boat harbor that was used by
many people was valuable. He said it was important
to continue pushing for criteria for measuring.
VOTE ON MOTION TO AMEND AS AMENDED
Ayes:
United States Fish and
Wildlife Service ".
Burt, Heinrichs,
McFarland, Milligan,
Stevens, Monroe
Heinrichs, McFarland,
Milligan, Stevens,
Monroe
Noes: Burt
Absent: Hancock
MOTION CARRIED 5 Ayes, 1 No
Assemblymember Milligan felt it was fashionable to
knock government but history dictated the need for
public lands. He supported preserving the Refuge by
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 114
changing management if there were problems. He felt
the public was better served by maintaining public
property.
Assemblymember Burt thought a basic ingredient of
democracy was private land ownership.
Assemblymember Stevens felt debate was good and a
consensus was achieved that more time was needed, the
Commission would review the property, the piracy
would be curbed, and all recommendations submitted to
the Assembly.
Assemblymember McFarland said piracy occurred when
property was purchased for the taxes owed when it was
worth more. He felt the Assembly was protecting
property owners, the Refuge and the Borough.
Presiding Officer Monroe knew the foreclosure process
was difficult. She felt this was due process,
however, because property owners were counselled on
the obligation of property ownership.
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes:
Regular Assembly Meeting
July 6, 1995
McFarland, Milligan,
Stevens, Heinrichs,
Monroe
Noes: Burt
Absent: Hancock
MOTION CARRIED 5 Ayes, 1 No
After a five minute recess at 9:20 p.m., Presiding
Officer Monroe reconvened the regular meeting.
MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM
MAYOR
Mayor Selby reported that the rewrite of the Oil
Pollution Act of 1990 (OPA90) that removed the $150
million insurance requirement passed the House and
was in the Senate. He said Senator Stevens staff
expected success for all of Alaska.
He announced that the Arctic National Wildlife Refuge
was termed the Arctic Oil Reserve for Congressional
discussion on approving oil and gas exploration on
the North Slope of Alaska.
He referred to an update from Brad Gilman, Washington
D.C. lobbyist, that outlined the status of the
reauthorization of the Magnuson Act, Payment in Lieu
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Page 115
of Tax, the Endangered Species Act, NOAA Facility,
Shuyak Island land sale and Outer Continental Shelf
revenue sharing back to municipalities.
He noted that Mr. Gilman would work with Trevor
McCade of Senator Stevens staff on the $150 million
(0PA90) insurance requirement. He said Mr. Gilman
was interested in questions and concerns from the
Assembly.
He reported that the House committee chairman wanted
to reduce the Payment in Lieu of Tax appropriation
$10 million from last year, but Mr. Gilman's efforts
brought a $10 million increase. He thought the
Borough would do well in the Senate where there was a
$15 million increase that was on tract with that
authorized by Congress last year.
He appreciated the fourth of July fireworks display
and commended the Kodiak Elks Club, City of Kodiak,
Kodiak Rotary Club and individuals in the community
who contributed.
He acknowledged recent deaths in the community and
sent condolences to the family and friends of Mike
McSwane, Chris Canfield, Island Air pilot, Doug
Cooper and Danny Jackson and Rod Parsons, U.S.
Coastguardsmen, and Justin Reeve and Scott Piper,
U. S. Navy personnel.
UNFINISHED BUSINESS
None.
NEW BUSINESS
A. CONTRACTS
1. Contract No. 95 -30 Otmeloi Way Water and
Sewer Improvements.
Service District No. 1
Scott Arndt, chairman,
MILLIGAN,
seconded by McFARLAND
Mayor Selby said the contract was controversial but
relatively straight forward in that the decision was
whether to include bid schedule IV that upgraded the
Regular Assembly Meeting
July 6, 1995
Board members present were
Roy Aguirre and Jim Fisk.
moved to award Contract
No. 95 -30 to A -K
Construction of Kodiak
for bid schedules I, II
and III in an amount
not to exceed $591,665.
OLD BUSINESS
NEW BUSINESS
CONTRACTS
CONTRACT
NO. 95 -30
Volume XX
Page 116
water line from Rezanof Drive to Mallard Way from
eight -inch to ten -inch pipe. He said there was
confusion with the Monashka Bay Water /Wastewater
Study based on the assumption of a ten -inch line
beginning at Peninsula Drive via Otmeloi to Rezanof
and back around behind Abercrombie Park. He referred
to a map in the chambers that indicated where it was
recommended the ten -inch line be installed. He said
staff recommended a ten -inch line back to the Mallard
Way intersection with four eight -inch lines feeding
into the ten -inch line when the Monashka Bay system
was developed. He said there was some discussion
that a ten -inch line would provide insurance in the
event of heavier use in the area.
In response to Assemblymember Burt, Mayor Selby
explained that the Study indicated a ten -inch line
was needed based on the assumption that use would
remain primarily residential with very little
commercial development.
When Assemblymember Heinrichs said he understood the
1991 Monashka Bay Water /Wastewater Study called for a
ten -inch line from the upper reservoir to loop the
system, Mayor Selby responded affirmatively.
At questions raised by Assemblymember Heinrichs,
Mayor Selby said the ten -inch line was required for
looping the system.
Assemblymember McFarland understood staff recommended
an eight -inch line but the thought was to replace the
eight -inch line from Mallard Way with ten -inch line
in the future. Mayor Selby clarified that the Study
for Monashka Bay indicated the need to install a ten -
inch line from Peninsula Drive and staff suggested
reviewing the possibility of upgrading to ten -inch
line at the Mallard Way intersection.
At questions from Assemblymember McFarland, Mayor
Selby clarified that staff thought a ten -inch line up
Otmeloi Way would have limited value depending on
future use in Monashka Bay.
Assemblymember McFarland thought the upgrade between
Mallard Way and Peninsula Drive would be needed at
some point and wondered about rejecting the bids and
go out to bid again. Mayor Selby said the eight -inch
line from Mallard Way to Peninsula Drive was adequate
and he felt it made sense to install a ten -inch line
when the Monashka Bay system was installed.
Assemblymember McFarland agreed but felt future
upgrades would be more costly.
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 117
Assemblymember Heinrichs was uncomfortable with
approving schedule IV if it would not be used. When
he said he felt schedule IV was confusing, Mayor
Selby agreed and clarified that the original bid
documents called for schedules I, II and III, with
schedule IV issued as an addendum. He said there was
some merit to install ten -inch line but he questioned
whether the expenditure of additional funds was
appropriate.
In response to Assemblymember Burt, Mayor Selby said
water could be drawn from the reservoir but the water
was untreated.
At the request of Assemblymember McFarland, Presiding-
Officer Monroe called for a two minute recess.
At 10:16 p.m. Presiding Officer Monroe reconvened the
regular meeting.
Assemblymember McFarland felt it was a legal issue
and direction was needed.
Assemblymember Burt asked to hear from Service
District No. 1 Board members.
Presiding Officer Monroe noted that people were
invited to comment at the beginning of meeting and
written material was submitted. She asked the
Assembly for their consideration.
Assemblymember Heinrichs wanted background on the
Board's discussion.
Assemblymember McFarland agreed and asked for a
timeframe. Mayor Selby said September 30 was the
deadline for completion of the sewer, November 1 for
construction and May 1996 for finish work. He added
that a two week delay could potentially cause an
impact because North Star Elementary School was due
on line by December 1. He said there was a way to
secure water but not sewer.
Assemblymember Milligan said a study would be
beneficial but the Assembly would have difficulty
digesting it in two weeks. He felt there was
sufficient information to make a decision.
Assemblymember Burt did not like voting with critical
timing and thought the bids should have been out on
the street sooner.
Assemblymember Heinrichs wanted to hear about the
deliberations of the Board.
Regular Assembly Meeting
July 6, 1995
Volume xx
Page 118
Mayor Selby said the Borough attorney recommended the
Assembly disregard deliberation and recommendation of
the Board due to a potential conflict of interest.
He noted the second option was to return the
information to the
When Scott Arndt interjected to say the Board wished
they had the same information received by the
Assembly, Presiding Officer Monroe asked him to be
quiet.
Assemblymember Heinrichs said he just read the
opinion and he felt the attorney clearly recommended
disregarding the recommendation of the Board.
Presiding Officer Monroe suggested scheduling a
special meeting to take the matter under advisement.
McFARLAND,
seconded by BURT
moved to postpone
Contract No. 95 -30 to a
special meeting on
Thursday, July 13, 1995
at noon in the borough
conference room with
recommendation that the
contract be remanded
back to the Service
District No. 1 Board
for reconsideration and
that Scott Arndt
abstain from the
decision making process
at the Service District
No. 1 Board level on
this issue.
When Assemblymember Burt asked about legal problems,
Mayor Selby said returning the question to the Board
was the alternate suggested by the attorney.
Assemblymember Stevens was uncomfortable that the
conflict of interest information was not available to
the public. He felt the Assembly danced around the
issue and that made the Assembly look dithering.
Assemblymember McFarland felt the need was for the
Board to review the engineering estimates and take
the time to do the project right.
In response to Presiding Officer Monroe, Mayor Selby
said it was an unfortunate situation in that both
contracting firms were reliable and the issue of ten -
inch line versus eight -inch line would determine
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 119
which contractor received the bid. He felt it was a
procedural matter that the Board should review and
submit their recommendation to the Assembly.
VOTE ON MOTION TO POSTPONE
Ayes:
VOTE ON MOTION TO AWARD
Ayes:
Noes: None
Regular Assembly Meeting
July 6, 1995
Stevens, Burt,
Heinrichs, McFarland,
Monroe
Noes: Milligan
Absent: Hancock
MOTION CARRIED 5 Ayes, 1 No
2. Contract No. 95 -31 Kodiak Island Borough CONTRACT
Middle School Exterior Finish Retrofit. NO. 95 -31
MILLIGAN, moved to award Contract
seconded by McFARLAND No. 95 -31 to Eastern
Exterior of Fairbanks
in an amount not to
exceed $190,000.
Mayor Selby said lead -based paint was discovered on
the Kodiak Middle School while preparing to paint.
He said the engineering analysis determined that
encapsulation was more cost effective than removal.
Assemblymember Heinrichs wondered what was eliminated
when the price was negotiated down from 209,000.
Mayor Selby said nothing was eliminated that was
critical in terms of building integrity. He said the
need was to ensure that the exterior was leak proof
and that encapsulating requirements were met. He
noted that $175,000 was budgeted so $15,000 was to be
transferred from Kodiak High School parking lots
resurfacing funds. He said the lots would be patched
this year and then a budget adjustment before the
Assembly next year to transfer $15,000 to complete
the resurfacing project.
In response to Assemblymember Burt, Mayor Selby said
cosmetic features, not integrity, were eliminated.
Stevens, Burt,
Heinrichs, McFarland,
Milligan, Monroe
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Page 120
Absent: Hancock
MOTION CARRIED Unanimous
3. Contract No. 95 -32 Kodiak Island Borough CONTRACT
Baler Building Exterior Lighting NO. 95 -32
Improvements and Hazardous Material Storage
Building Electrical Hook -up.
MILLIGAN,
seconded by McFARLAND
moved to award Contract
No. 95 -32 to Templeton
Electric of Kodiak in
an amount not to exceed
$14,970.
Mayor Selby said completing the electrical wiring
would allow the Borough to legally store household
hazardous waste until the annual pickup.
At questions from Assemblymember McFarland, Mayor
Selby said funds were budgeted in the original
building project.
VOTE ON MOTION TO AWARD
Ayes:
Noes: None
Absent: Hancock
MOTION CARRIED Unanimous
4. Contract No. 95 -33 Kodiak Island Borough CONTRACT
Hazardous Waste Collection and Disposal NO. 95 -33
Program.
MILLIGAN,
seconded by STEVENS
Regular Assembly Meeting
July 6, 1995
Burt, Heinrichs,
McFarland, Milligan,
Stevens, Monroe
moved to award Contract
No. 95 -33 to Philip HHW
Services, Inc. of
Anchorage in an amount
not to exceed $37,350.
Mayor Selby said the annual contract was for removal
of household hazardous waste from the Island.
In response to Presiding Officer Monroe, Mayor Selby
said there were also plans to remove waste from the
villages but the problem was how to transport the
waste legally. He noted that Port Lions legally
transported waste through the state ferry system.
Volume XX
Page 121
VOTE ON MOTION TO AWARD
Ayes:
Noes:
Absent:
MOTION CARRIED
STEVENS,
seconded by McFARLAND
VOTE ON MOTION TO AWARD
Ayes:
5. Contract No. 95 -34 Service District No. 1 CONTRACT
Road Maintenance and Repair, Grading, Snow NO. 95 -34
Removal and Sanding.
Noes:
Absent:
MOTION CARRIED
B. RESOLUTIONS
McFARLAND,
seconded by HEINRICHS
Mayor Selby explained that
Regular Assembly Meeting
July 6, 1995
Heinrichs, McFarland,
Milligan, Stevens,
Burt, Monroe
None
Hancock
Unanimous
moved to award Contract
No. 95 -34 to Island
Sand & Gravel, Inc. of
Kodiak.
Mayor Selby said the Service District No. 1 Board
recommended awarding the annual road maintenance
contract to Island Sand & Gravel.
McFarland, Milligan,
Stevens, Burt,
Heinrichs, Monroe
None
Hancock
Unanimous
1. Resolution No. 95 -29 Authorizing the
Acquisition of Private Land for Utility
Easement Purposes. (Across Lot 11, U.S.
Survey 3464)
Presented for consideration was Resolution No. 95 -29
that, if adopted, authorized the mayor to acquire, by
fair market value, a utility easement across Lot 11,
U.S. Survey 3464 needed to tie into existing public
utilities.
moved to adopt
Resolution No. 95 -29.
the easement was needed to
RESOLUTIONS
RESOLUTION
NO. 95 -29
Volume XX
Page 122
hook -up North Star Elementary School to existing
public utilities located on private property. He
said the owner, Jim Fisk, was offered fair market
value for the easement but indicated he would donate
the easement to the Borough.
The Assembly thanked Mr. Fisk for his generosity.
VOTE ON MOTION TO ADOPT
Ayes: Milligan, Stevens,
Burt, Heinrichs,
McFarland, Monroe
Noes:
Absent:
MOTION CARRIED
C. ORDINANCES FOR INTRODUCTION
None.
D. OTHER
None.
INFORMATIONAL MATERIALS (No action required)
A.
B.
MINUTES OF OTHER MEETINGS
MINUTES OF OTHER
1. Planning and Zoning Commission Regular MEETINGS
Meeting of May 17, 1995.
2. Kodiak Island Borough Mental Health Center
Advisory Board Regular Meeting of May 22,
1995.
REPORTS
C. OTHER
None.
CITIZENS' COMMENTS
Scott Arndt, Service District No. 1 Board chair,
recommended returning Contract No. 95 -30 to the
Board. He said Engineering /Facilities presented a
Regular Assembly Meeting
July 6, 1995
Kodiak Island Borough
Report.
Kodiak Island Borough
1995 Financial Report
None
Hancock
Unanimous
June 1995 Financial
School District May
ORDINANCES FOR
INTRODUCTION
OTHER
INFORMATIONAL
MATERIALS
REPORTS
OTHER
CITIZENS'
COMMENTS
Volume XX
Page 123
package for the June 27 Board meeting that contained
a copy of the sign -in sheet from the June 23 bid
opening that included Jim Graham of A -K Construction,
Mike Brechan of Brechan Enterprises, Steve Hobgood,
Engineering and Facilities Director, and Connie
Lanahan, Secretary III. He said they also received a
sheet showing that both bidders had four addendums,
the bid guarantee, bid schedule, corporate
acknowledgement, contractors certificate, and Alaska
business license. He said they received a complete
bid and bid tabulation for schedules I, II, III and
IV for both contractors. He noted that during
deliberations one Board member questioned why
schedule IV was not part of the bid packet. He said
the Board reviewed the effect of schedule IV that was
ten -inch line versus the eight -inch line.
Mr. Arndt requested schedule IV. He contended that
all schedules included in the original bid packet and
both bid contractors would verify that. He said the
Board proceeded with deliberations and decided to
include schedule IV for the additional $17,000 and
award the contract to Brechan Enterprises. He then
found that Engineering and Facilities Department
staff recommended A -K Construction as the low bidder
but the next day the recommendation was Brechan
Enterprises. He contended that the Board should have
received all information and the question should be
returned to the Board for a decision. He said his
employment with Brechan ended and he felt he was
accused, judged and sentenced for a conflict of
interest without any questions asked.
,Tim Fisk thanked Bud Cassidy for working with him on
the easement. He said he was glad the Borough took
only a portion because a prior engineer tried to take
the whole thing. He said in Alaska you could take
away a person's land but you could not take their
heart and his heart was in Kodiak. He received a
notice from Washington D.C. that his five -year
project was a reality and he claimed Kodiak as the
home of a patent that would be the biggest thing
since the hula hoop. He noted that Mr. Arndt was on
the Board since inception but innuendos of the vote
were eventually cleared up. He thought the Borough
should direct boards to be positive and have staff
record and prepare minutes so the borough has
accurate records.
Jeff Knauf thanked the Assembly for listening to his
concerns about the foreclosed properties. He looked
forward to reviewing the property and getting back to
the Assembly.
Regular Assembly Meeting
July 6, 1995
Volume XX
Page 124
ASSEMBLYMEMBER COMMENTS ASSEMBLYMEMF
COMMENTS
Assemblymember Milligan said the size of line on
Otmeloi Way was a controversial issue and the
conflict of interest opinion clouded the issue. He
thanked Mr. Fisk and noted that earphones were
available in the chambers for the hearing impaired.
Assemblymember Heinrichs expressed condolences to the
family and friends of those killed in recent
tragedies. He appreciated Coast Guard and fire
department personnel for their recovery efforts.
Assemblymember Burt hoped that private land would
return to private hands.
Assemblymember McFarland expressed condolences to the
family and friends of those recently killed and to
the owner of the air charter service. He felt it was
a high impact on the community. He asked that the
Service District No. 1 Board receive a copy of the
conflict of interest legal opinion. He agreed with
Mr. Arndt that additional review was needed. He
thought a perceived conflict was as damaging as a
true conflict and he felt the legal opinion should be
abided by whether right or wrong to ensure that
decisions were clean and proper.
Presiding Officer Monroe appreciated the Assembly for
their consideration of the issues. She asked that
the Service District No. 1 Board provide their
recommendation at the July 13 special meeting. She
felt it was important to look at issues with an open
mind and good judgement.
She announced that the Assembly would meet in a
special meeting on Thursday, July 13 at noon in the
Borough conference room, a work session on Thursday,
July 13 at 7:30 p.m. in the Borough conference room
and regular meeting on Thursday, July 20 at 7:30 p.m.
in the assembly chambers.
Without objection, Presiding Officer Monroe adjourned ADJOURNMENT
the meeting at 11:05 p.m.
ATTEST:
onna F. Smit , CMC, Borough Clerk
Approved: 08/03/85
Regular Assembly Meeting
July 6, 1995
& .72
Mary A. onroe
Presiding Officer
Volume XX
Page 125