Loading...
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 Volume XX 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. Volume XX 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 Volume XX 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 Volume XX 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. Volume XX 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 Volume XX 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 Volume XX 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 Volume XX 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