02/21/2008 Regular MeetingKODIAK ISLAND BOROUGH
Assembly Regular Meeting Minutes
February 21, 2008
A regular meeting of the Kodiak Island Borough Assembly was held February 21, 2008 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.
The invocation was given by Captain John Quinn of the Salvation Army.
Present were Mayor Jerome Selby, Assembly members Pat Branson, Jerrol Friend, Sue Jeffrey,
Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Clerk Nova
Javier, and Deputy Clerk Marylynn McFarland.
Assembly members Abell and Oswalt were out on personal leave.
BRANSON moved to excuse Assembly members Abell and Oswalt, seconded by FRIEND.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA AND CONSENT AGENDA
JEFFREY moved to approve the agenda and consent agenda, seconded by BRANSON.
FRIEND moved to amend the agenda by removing Employee of the Year and Longevity
Awards, seconded by BRANSON.
VOICE VOTE ON MOTION TO AMEND THE AGENDA CARRIED UNANIMOUSLY.
VOICE VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS
AMENDED CARRIED UNANIMOUSLY.
The following items were approved under consent agenda:
• Regular Meeting Minutes of November 15, 2007, December 6, 2007, December 20,
2007, and January 17, 2008; and Special Meeting Minutes of December 27, 2007and
January 10, 2008.
• Resolution No. FY2008 -25 Requesting State Funding of Research Into the Cause of
Birth Defects in Sitka Blacktail Deer in the Kodiak Archipelago and How to Address the
Problem.
• Resolution No. FY2008 -26 Establishing Citizens Board of Equalization Dates for the
Year 2008.
• Resolution No. FY2008 -27 Designating the Individual Who Will Serve as the
Administrative Official During the Absence of the Kodiak Island Borough Manager.
• Introduction of Ordinance No. FY2008 -15 Amending Kodiak Island Borough Code of
Ordinances Sections 2.39.070 Declaring and Filling Vacancies in Title 2; Section
4.15.040 Vacancies in Title 4; and Section 2.43.02 Appointment, Terms, and Procedures
in Title 2.
• Introduction of Ordinance No. FY2008 -16 Amending Kodiak Island Borough Code of
Ordinances Title 5 Business Licenses and Regulations Chapter 5.01 Liquor Licenses
Section 5.01.030 New License and Transfer Procedure.
• Introduction of Ordinance No. FY2008 -17 Amending Title 2 Administration and
Personnel Chapter 2.15 Borough Mayor Section 2.15.020 Qualification and Election of
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February 21, 2008 Page 514
Borough Mayor and Chapter 2.16 Borough Assembly Section 2.16.020 Term, Section
2.16.050 Oath Deputy Presiding Officer and Creating Section 2.16.030 Assembly Oath
of Office.
• Hiring of Maintenance Coordinator at Salary Range 20, Step H.
AWARDS AND PRESENTATIONS
Mayor Selby presented the January Student of the Month Award to Sean Moe, a Senior at
Larsen Bay School and the February Student of the Month Award to James Wood, a Senior at
Kodiak High School.
CITIZENS' COMMENTS
Jan Pennington, Chairperson of the Kodiak Island Convention and Visitors Bureau, gave an
update on the current activities of the Bureau. She introduced the new Executive Director, Janet
Buckingham.
Giovanni Tallino, Tom Emerson, Rick Ellingson, Tom Dooley, and Jake Jacobson spoke in
support of Resolution No. FY2008 -25.
Nick Szabo spoke in favor of Resolution No. FY2008 -24.
Margaret Bosworth thanked the Assembly for the matching funds for the North Star PTA's street
lighting project.
COMMITTEE REPORTS
Don Rush, PKIMC Hospital Administrator, reported on the current activities at the hospital.
Assembly member Stutes who serves on the Providence Kodiak Island Counseling Center
Advisory Board gave an update on the PKI Counseling Center activities.
Assembly member Lynch, Assembly representative on the Solid Waste Advisory Board, gave
an update on the SWAB activities.
Assembly member Jeffrey, Kodiak Fisheries Advisory Committee Assembly representative,
reported on the KFAC activities.
PUBLIC HEARING
A. Ordinance No. FY2008 -13 Amending Title 2 Administration and Personnel, Chapter
2.17 Borough Assembly, Section 2.17.070 Ordinances, Resolutions, and Motions to
Clarify Request for Ordinances and Legal Opinions Processes.
FRIEND moved to adopt Ordinance No. FY2008 -13, seconded by BRANSON.
Clerk Javier reported that this Ordinance addresses a change on who should prepare
ordinances and clarifies that all written legal opinions, relating to borough business, should go
through the manager's or clerk's office. Assembly member Abell also expressed to the Clerk
that he would like the Assembly to consider amending the ordinance before the Assembly to
read: "During a work session or a meeting, any two (2) or more members of the assembly may
request written legal opinions, relating to borough business, from the attorney through the
manager's or the clerk's office."
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February 21, 2008 Page 515
JEFFREY moved to amend the proposed ordinance with the additional wording as suggested
by Assembly member Abell, seconded by BRANSON.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Branson, Friend,
Jeffrey, Lynch, and Stutes.
Mayor Selby opened the public hearing. Hearing and seeing none, Mayor Selby closed the
public hearing.
ROLL CALL VOTE ON MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend, Jeffrey,
Lynch, Stutes, and Branson.
B. Ordinance No. FY2008 -14 Amending Title 2 Administration and Personnel, Chapter
2.17 Borough Assembly, Section 2.17.070 Ordinances, Resolutions, and Motions to
Provide a Procedure for Revisiting Failed Ordinances, Resolutions, and Motions.
JEFFREY moved to adopt Ordinance No. FY2008 -14, seconded by FRIEND.
Clerk Javier reported that this ordinance deals with motions that could present a challenge to
the Assembly by re- visiting failed motions that reach the same outcome meeting after meeting.
Three options were provided to the Assembly.
Mayor Selby opened the public hearing. Hearing and seeing none, Mayor Selby closed the
public hearing.
JEFFREY to amend Ordinance No. FY2008 -14 by substituting with option B, seconded by
STUTES.
BRANSON moved to further amend Ordinance No. FY2008 -14 by striking out "substantially ", in
Section N, seconded by JEFFREY.
ROLL CALL VOTE ON THE SECOND AMENDMENT CARRIED FOUR TO ONE: Jeffrey,
Lynch, Branson and Friend (Ayes); Stutes (No).
ROLL CALL VOTE ON THE FIRST AMENDMENT AS AMENDED CARRIED UNANIMOUSLY:
Lynch, Stutes, Branson, Friend, and Jeffrey.
ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Stutes,
Branson, Friend, Jeffrey, and Lynch.
C. State of Alaska Alcoholic Beverage Control Board Request for Transfer of Ownership
of Northland Ranch Resort Liquor License, Beverage Dispensary License #1955 to
Olds River Inn.
FRIEND moved to voice non - protest to the State of Alaska Alcoholic Beverage Control Board
Transfer of Ownership of Northland Ranch Resort's Liquor License, Beverage Dispensary
License #1955, from Omar Stratman to Circle B, LLC., seconded by BRANSON.
Clerk Javier reported that the Assembly was required after public hearing to determine by
motion if a protest to the application was to be lodged with the Alcoholic Beverage Control
Board. She reported that there were no trouble reports and no Borough interest can be
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February 21, 2008 Page 516
protected by protesting the transfer. Eight public hearing notices were mailed; one was returned
favoring the transfer.
Mayor Selby opened the public hearing. Hearing and seeing none, Mayor Selby closed the
public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Jeffrey, Lynch,
and Stutes.
BOROUGH MANAGER'S REPORT
Manager Gifford reported the legislative session had passed its 30 -day mark. He proposed a
letter should be drafted and sent in support of House Bill 373, an act extending the school bond
debt reimbursement. The site work on the pool project will begin on February 23. He also
provided updates on KMS Seismic Upgrade, Ouzinkie Gym, CHC, and other bid packages. The
Finance Department will be mailing out a financial overview publication. The March 6 regular
meeting was cancelled by the Assembly and asked for consensus to cancel the February 28
work session.
MESSAGES FROM THE BOROUGH MAYOR
Mayor Selby announced that the census update reflected the number of people living in Kodiak
was 13,574. He reported on the discussions at the February 19 joint Borough and City work
session. He looked forward to working with the City at the joint legislative reception.
UNFINISHED BUSINESS — None.
NEW BUSINESS
A. Contracts
1. Contract No. FY2005 -09A Amending Contract No. FY2005 -09 Employment
Contract Between the Kodiak Island Borough Assembly and Rick Gifford as
Manager.
BRANSON moved to approve Contract No. FY2005 -09A Amendment #1 to Contract FY2005 -09
between the Kodiak Island Borough and Rick L. Gifford, Borough Manager, seconded by
STUTES.
Manager Gifford reported that his present contract was a three (3) year contract through the end
of business on May 23, 2008. Section 2A of the contract provides for a ninety (90) day written
notice, by either party, to renew or not renew said contract by mutual consent after the three (3)
years. He had attached a memo indicating his desire to renew the contract. The proposed
amendment would extend the contract until terminated by either party subject to Section 4 of the
Contract which basically provides for a ninety (90) day written notice by either party.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Jeffrey, Lynch, Stutes,
and Branson.
B. Resolutions
1. Resolution No. FY2008 -03C Amending Resolution No. FY2008 -03 to Appoint to
the Lodge /Charter Boat Operator Seat and Vacate the Large Trawl Vessel Seat
on the Kodiak Fishery Advisory Committee (KFAC).
JEFFREY moved to adopt Resolution No. FY2008 -03C, seconded by BRANSON.
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February 21, 2008 Page 517
Manager Gifford reported that Mr. Jim Hamilton, an initial member of the Committee, served in
the "large trawl" seat. He has requested that he be appointed to the Lodge /Charter Boat
Operator seat. This action was approved by the City Council at their January 24, 2008 Regular
Meeting which opened up the large trawl seat on the committee for appointment.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Lynch, Stutes, Branson,
and Friend.
2. Resolution No. FY2008 -24 Authorizing the Payment of Legal Fees to the Law
Firm of Clapp, Peterson, Van Flein, Tiemessen and Thorsness, LLC for Legal
Services Related to the Stephens vs. KIB Lawsuit.
Assembly member Stutes declared a conflict of interest. Mayor Selby ruled there was a conflict.
FRIEND moved to adopt Resolution No. FY2008 -24, seconded by BRANSON.
Manager Gifford reported that this resolution would authorize the Manager to pay incurred and
future legal fees to the law firm of Clapp, Peterson, Van Flein, Tiemessen and Thorsness, LLC
for legal services related to the Stephens vs. KIB lawsuit.
Discussion ensued whether the fees should be paid.
ROLL CALL VOTE ON MOTION FAILED UNANIMOUSLY: Lynch, Branson, Jeffrey, and Friend.
Assembly member Friend changed his vote to no.
ROLL CALL
and Lynch.
3. Resolution No. FY2008 -28 Providing Safe Access by Pedestrian Trails to North
Star Elementary School and Supporting the Necessary Local Match to a Federal
Earmark.
FRIEND moved to adopt Resolution No. FY2008 -28, seconded by BRANSON.
Manager Gifford reported that the Assembly travelled to Washington D.0 in 2004 and secured
money to construct trails to North Star Elementary School. This resolution does two things: 1) It
identifies the Assembly's continued commitment in supporting safe walking and biking routes to
North Star School; and 2) it also supports matching the Federal Earmark with a required local
contribution of $110,331 (9.03 %). This with the real federal contribution of $1,111,500 (reduced
due to what were called recessions) brings the total project to $1,221,831.
VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Jeffrey,
4. Resolution No. FY2008 -29 Authorizing the Execution of a Supplemental
Memorandum of Agreement and of a Lease With Providence Health System
Alaska and Kodiak Island Health Care Foundation for the Kodiak Community
Health Center.
BRANSON moved to adopt Resolution No. FY2008 -29, seconded by FRIEND.
Manager Gifford reported the Kodiak Island Borough had been working with Providence and the
Kodiak Island Health Care Foundation (KIHCF) to provide facility space for the Kodiak
Community Health Center (KCHC). By means of a Memorandum of Agreement (MOU)
originally executed in March 2004, KIB confirmed its support to this project. Prior to awarding
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February 21, 2008 Page 518
the construction contract, it was appropriate to renew the MOU by means of a Supplemental
Memorandum of Understanding (SMOU), which reflects the changes in the nature of the project
since the MOU was originally executed. It was also appropriate to approve a lease which will be
the "definitive agreement by the parties" with the term of the lease to begin on the date that a
certificate of occupancy was issued for the new building.
The essential terms and conditions of the attached lease was a twenty -five (25) year lease with
an option to extend an additional twenty -five years upon mutual written agreement. The annual
lease would be $120 per year which was negotiated based on the fact that the KIHCF has
raised most of the funds to construct the building and has agreed through the lease to be
responsible for all maintenance and repairs to the building during the lease.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Jeffrey, Lynch,
and Stutes.
C. Ordinances for Introduction
1. Ordinance No. FY2008 -01 C Amending Ordinance No. FY2008 -01 Fiscal Year
2008 Budget by Moving Money Between Funds, Amending Budgets to Provide for
Additional Expenditures and Budgeting for Several Grants.
STUTES moved to adopt Ordinance No. FY2008 -01 C in first reading to advance to public
hearing at the next regular meeting, seconded by BRANSON.
Manager Gifford reported this Ordinance was necessary to:
• Increase the Borough's general fund revenues and expenditures
• Increase the MIS department budget
• Add $5,500 to the budget for North Star School lighting.
• Budget a contribution of $110,331 to fulfill the matching requirements of the Federal
North Star Trails Grant ($1,221,831).
• Move $27,640 in excess funding for building insurance back to the Facilities Fund.
• Establish a project for the Peterson Elementary School Seismic Project and the State
grant that funds it.
• Provide $50,000 for preliminary work on the High School Gym Seismic Project.
• Establish the Kodiak Middle School (KMS) Seismic Upgrade, Phase II project and
budgets $2,700,000 to complete the budget.
• Establish the Ouzinkie Sprinkler System and budgets $330,000 to complete the project.
• Establish the Ouzinkie Generator Replacement and budgets $88,000 to complete the
project.
• Increase the budget for anticipated interest earnings.
• Transfer $390,000 from the Hospital Enterprise fund to Fund 495, Hospital Capital
Projects.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Jeffrey, Lynch, Stutes,
and Branson.
D. Other Items
1. Assembly Appointment to the Womens Bay Service Area Board.
BRANSON moved to appoint Dave Conrad for a term to expire 2009 and Jessica Horn for a
term to expire 2010 on the Womens Bay Service Area Board, seconded by JEFFREY.
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February 21, 2008 Page 519
Clerk Javier reported that there were two seats open on the Womens Bay Service Area Board
to expire 2009 and 2010. The three applicants were: David "Dave" Conrad, Robyn Haight, and
Jessica Horn. The Board met on Tuesday, February 5 and recommended the appointments of
Dave Conrad to the seat to expire 2009 and Jessica Horn for the seat to expire 2010.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Lynch, Stutes, Branson,
and Friend.
2. Mayoral Appointments to Planning and Zoning Commission.
JEFFREY moved to confirm the Mayoral appointment of Erin Harrington to a City seat for a term
to expire December 31, 2008 on the Planning and Zoning Commission, seconded by
BRANSON.
Clerk Javier reported the there was one vacant city seat to expire 2008 on the Planning and
Zoning commission. The applicants were: Deborah Darminio, Erin Harrington, and Monte "Wes"
Nedrow. The City Council reviewed the applications on January 19 and they recommended the
appointment of Erin Harrington to the vacant seat.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Branson, Friend,
and Jeffrey.
3. Declaring a Seat on the Board of Equalization Vacant.
JEFFREY moved to declare the seat held by Louise Stutes on the Board of Equalization vacant,
seconded by BRANSON.
Clerk Javier reported that Alaska Statutes allow an Assembly member to seat on the Board of
Equalization (BOE.) Borough Code; however, was more restrictive so Louise Stutes' seat on the
BOE needs to be declared vacant.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Jeffrey,
and Lynch.
4. Resignation and Confirmation of Mayoral Appointment to the Prince Williams
Sound Region Citizens' Advisory Council (PWSRCAC.)
FRIEND moved to accept, with regret, the resignation of Mr. Jim Nestic and moved to confirm
the mayoral appointment of Mr. Iver Malutin on the Prince William Sound Citizens' Advisory
Council for a seat to expire 2009, seconded by STUTES.
Clerk Javier stated that Mr. Jim Nestic had submitted a letter of resignation. Mr. Nestic had
served on the Board since 1999 as the Kodiak Village Mayors Association representative. Mr.
Nestic recommended Mr. Iver Malutin to serve as his replacement. An application was received
from Mr. Malutin expressing his interest to serve on the board.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Jeffrey, Lynch,
and Stutes.
CITIZENS' COMMENTS - None
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February 21, 2008 Page 520
ASSEMBLY MEMBER COMMENTS
Assembly member Lynch congratulated Sean Moe and James Wood. She also thanked Don
Rush on the accomplishments of the Providence Kodiak Island Medical Center. She reminded
service area residents to educate themselves on the services they are entitled to.
Assembly member Stutes congratulated Sean Moe and James Wood. She also thanked Don
Rush. Assembly member Stutes commented on the attorney fees and her entitlement to
representation. She stated she was directed by the Borough Attorney to find representation.
Assembly member Jeffrey gave a report on the SWAMC's annual meeting. She offered to repay
2/3 of her Assembly stipend for the month of December in an effort to help in the resolution of
the lawsuit.
Assembly member Friend expressed his appreciation for the services of Providence Kodiak
Island Medical Center. He thanked Superintendent Larry LeDoux for his presentation to the
Assembly regarding the High School facility. He would like an update regarding the Chiniak
garbage billing. He would like to see a closure concerning the KIB vs. Stephens's lawsuit.
Assembly member Branson congratulated Sean Moe and James Wood. She looked forward to
further discussions and getting the lawsuit over.
Mayor Selby suggested meeting with Borough Attorney Matt Jamin, in an executive session,
when he returns from Washington D.C.
Announcements
Mayor Selby announced that the Assembly work session scheduled on Thursday, February 28,
2008 and the regular meeting scheduled on Thursday, March 6, 2008 have been cancelled. He
along with members of the Assembly, and the Manager would be travelling to Juneau on March
4 -6 to meet with legislators and attend the Joint Kodiak Island Borough /City of Kodiak
Legislative Reception. Mayor Selby reported that the Boards, Committees, and Commissions
Reception would be held Friday, February 22 from 7 to 9 p.m. at the Kodiak Fisheries Research
Center. All board members, committee members, and commissioners and their guests were
invited to attend.
ADJOURNMENT
STUTES moved to adjourn the meeting, seconded by BRANSON.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Jeffrey, Lynch, Stutes,
and Branson.
The meeting adjourned at 9:30 p.m.
ATTEST:
No a M. Javier, C j , Borough Clerk
Kodiak Island Borough
February 21, 2008
KODIAK ISLAND BOROUGH
ome M. Selby, =ayo�,
Approved: March 20, 2008
Assembly Minutes
Page 521