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09/02/1999 RMA regular meeting of the Kodiak Island Borough Assembly was held September 2, 1999 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 Paster Todd Pitney of Kodiak Community Baptist Church, followed by the Pledge of Allegiance. There were present: Ayes: Mayor: Gary L. Stevens Assemblymembers: Tom Abell Scott Arndt Tuck Bonney Pat Branson comprising a quorum of the Assembly; and Linda Freed, Acting Manager Judi Nielsen, CMC, Clerk Patti Kirkpatrick, Deputy Clerk APPROVAL OF AGENDA HEINRICHS, seconded by ARNDT ARNDT, seconded by BRANSON VOTE ON MOTION TO AMEND Noes: MOTION CARRIED Regular Assembly Meeting September 2, 1999 None KODIAK ISLAND BOROUGH Regular Assembly Meeting September 2, 1999 Robin Heinrichs Wayne Stevens Greg Spalinger moved to approve the agenda. moved to amend the agenda to add item number 16 Executive Session, A. Matters Pertaining to Manager Hire. Abell, Arndt, Bonney, Branson, Heinrichs, Spalinger, Stevens Unanimous REGULAR MEETING ROLL CALL APPROVAL OF AGENDA Volume XXV Page 196 VOTE ON MOTION TO APPROVE AS AMENDED MOTION CARRIED APPROVAL OF MINUTES A. Kodiak Island Borough Assembly regular meeting of August 5, and special meetings of August 12 and August 16, 1999. HEINRICHS, seconded by ARNDT VOTE ON MOTION TO APPROVE MOTION CARRIED AWARDS AND PRESENTATIONS A. Employee of the Month Manager Freed presented the Employee of the Month Award to Bob Scholze, associate planner in the Community Development Department. CITIZENS' COMMENTS Unanimous voice vote Unanimous voice vote moved to approve the regular minutes of August 5, August 12, and August 16, 1999. A. Agenda Items Not Scheduled For Public Hearing and General Comments. None. COMMITTEE REPORTS Assemblymember Branson attended the Kodiak College Council meeting and learned that the college pursuing implementing a vocational training program. PUBLIC HEARING All ordinances and resolutions presented at this meeting were introduced by title only and copies made available to the public. A. Ordinance No. 99 -08 Placing a Ballot Measure Before the Voters at the October 5, 1999 Regular Municipal Election That, if Passed by the Voters, Would Allow the Kodiak Island Regular Assembly Meeting September 2, 1999 APPROVAL OF MINUTES AWARDS AND PRESENTATIONS EMPLOYEE OF THE MONTH CITIZENS' COMMENTS COMMITTEE REPORTS PUBLIC HEARING ORDINANCE NO. 99 -08 Volume XXV Page 197 Borough to Levy and Collect a Consumer's Sales Tax Not Exceeding One Percent (1 %) of the Sales Price on all Retail Sales, on all Rents, and on all Services Made Within the Confines of the Kodiak Island Borough and The Revenues Derived Therefrom May Be Used for the Kodiak Area Transit System (KATS) Operations. BONNEY, moved to adopt seconded by BRANSON Ordinance No. 99 -08. Manager Freed provided a brief background on the ordinance. She referred to the attorney's opinion regarding implementation of a sales tax. Mayor Stevens opened the public hearing. Mike Milligan was upset to hear that the Alaska Municipal League (AML) supported a yes vote to reduce the permanent fund dividend (PFD). Although many Alaskans opposed taxes, he favored the proposed sales tax as a compromise the community could understand. Mayor Stevens was not aware that AML supported the PFD ballot question. John Parker opposed a sales tax because it would be costly to administer. He said the Kodiak Area Transit System (KATS) had failed to prove itself in eighteen months and taxpayers should not fund a system that was not fully utilized. Michael Rasmussen phoned to say that the voters voted for a tax cap two years ago and did not want to pay more taxes. He said the feasibility study failed to show KATS was a problem venture until the funding was gone. He saw KATS as a new form of welfare. Roger Reddekopp was opposed to KATS and to the sales tax because he saw no limitation on where the funds would be spent. John Marshall phoned to say he felt any new tax would burden the taxpayers of Kodiak. Sara Thayer opposed a sales tax funding KATS. William Hogan phoned to say he felt increased taxes would hurt those living on a fixed income. Regular Assembly Meeting September 2, 1999 Volume XXV Page 198 Mel Stevens said that with declining state funds, local government had fund existing services; however, he opposed government funding new services like KATS. Ben Ardinger phoned to say he felt a sales tax would encourage the community to shop out of town via catalogs. He wanted KATS to pay for itself. Cathy Cordry supported KATS as an admirable cause. She asked if there would be a tax cap similar to the city's. She was concerned that the Assembly was dedicating funds. Mayor Stevens said the funds would be placed in the general fund and potentially used to support KATS. Tom Quick phoned in to ask how the school district paid for bus service. He thought KATS could provide school bus service and resolve the issue. Woody Koniq said KATS was an important part of the community's infrastructure. He questioned the seasonal sales tax because of the accountability; however, as a taxpayer, he would support KATS. Isaac Milligan said many students living in Bell's Flats relied on KATS to travel to town to participate in athletics. He suggested fares be increased to help support the system. Karla Griffiths, KATS petition volunteer, felt there was community support for KATS. She said KATS benefited the elderly, families with one vehicle, and students. She noted that whenever she rode the bus, there were two to twelve riders each time. Clerk Nielsen read into the record a letter received from Philip Chiaravalle, Jr. opposing the ordinance. Mayor Stevens closed the public hearing and reconvened the regular meeting. Assemblymember Bonney was opposed to raising taxes; but, he felt obligated to pursue funding for KATS. He thought to reduce the tax and collect throughout the year to resolve accounting problems. He wanted basic services like education and non - profits funded first. He hoped for an ordinance with exemptions similar to the city's. He felt this was a fair way for the community to pay for a service they wanted. Regular Assembly Meeting September 2, 1999 Volume XXV Page 199 BONNEY, seconded by BRANSON Assemblymember Bonney felt one - quarter of one percent would provide enough funds for KATS to operate and if additional funds were needed, they could go back before the voters. He wanted a check and balance system for KATS. Assemblymember Branson appreciated Mel Stevens' comments on funding for the community. She noted the Assembly did not fully fund education and stressed the importance for the Assembly to review future budget problems and to have the foresight to place the ordinance on the ballot for the voters to decide. Assemblymember Abell opposed the ordinance. Assemblymember Arndt opposed the sales tax. He said the Borough did not fund the KATS pilot project; however, the Borough provided funds until grant funds were received. He was concerned that one - quarter percent might not be enough. Assemblymember Branson thanked Assemblymember Bonney for bringing the ordinance forward. She pointed out that placing the question on the ballot allowed the voters to make the decision. Assemblymember Stevens felt a one percent tax was easier to collect. He wanted to place the question on the ballot. ROLL CALL VOTE ON AMENDMENT Ayes: Noes: MOTION FAILED 3 Ayes, 4 Noes Assemblymember Stevens said first this was a property tax petition and then a sales tax question. He appreciated the vigorous debate and felt the community was learning how local government worked. Regular Assembly Meeting September 2, 1999 moved to amend Ordinance No. 99 -08 by replacing the words: "one percent" with the words: "one- quarter of one percent ". Bonney, Branson, Abell Arndt, Heinrichs, Spalinger, Stevens Volume XXV Page 200 Assemblymember Spalinger felt Kodiak did not need a transit system. Assemblymember Branson strongly favored allowing the voters to decide. Assemblymember Bonney felt the one percent sales tax collected throughout the year was not in line with the original intent to fund KATS. Mayor Stevens said if the voters approved the ballot measure, the Assembly would have many options available to them. Assemblymember Bonney was concerned about the use of the excess revenue generated by the one percent sales tax. He favored a special election to raise funds for services like education and non - profits. In response to Assemblymember Arndt, Manager Freed said 2,600 passengers in one month was low for summer months. Assemblymember Arndt said the current budget was balanced; however, he felt that, historically, the Assembly had spent beyond their means. He saw more budget cuts next year due to declining state revenues. He felt the current tax burden was adequate and opposed increasing taxes. He did not feel the Assembly was doing their job in providing basic services. Assemblymember Heinrichs wanted the voters to decide. He noted that the sales tax would provide relief to property owners. Assemblymember Abell reiterated that the feasibility study indicated the system would support itself. He was disappointed that the Assembly was not advised that public transportation could not subsidize itself. VOTE ON MOTION TO ADOPT Ayes: Branson, Heinrichs, Stevens Noes: Bonney, Spalinger, Abell, Arndt Regular Assembly Meeting September 2, 1999 Volume XXV Page 201 MOTION FAILED 3 Ayes, 4 Noes MESSAGES FROM THE INTERIM MANAGER MESSAGES FROM INTERIM MANAGER Manager Freed reported on problems with the Akhiok teacherage. She said the Alaska Housing Authority repair and make the teacherage livable. In response to Assemblymember Arndt, Manager Freed noted the teacherage had been a concern for some time. She said the doors and windows needed to be replaced. She said this was before the assembly for their review in case repairs were more than $5,000. She said the funds were available in the budget. Assemblymember Arndt was disappointed that Akhiok waited until the start of the school year to repair the teacherage. MESSAGES FROM THE BOROUGH MAYOR MESSAGES FROM THE MAYOR Mayor Stevens noted that the five manager applicants were in Kodiak last week and met the Assembly, staff, and the community. He thanked the clerk's office for their help and hard work during the hiring process. OLD BUSINESS OLD BUSINESS A. Ordinance No. 99 -05 Amending Title 17 Zoning ORDINANCE of the Kodiak Island Borough Code of NO. 99 -05 Ordinances by Amending Section 17.02.030 Comprehensive Plan to Incorporate the Pasagshak /Narrow Cape Area Plan (June 1999). ARNDT, seconded by BONNEY ROLL CALL VOTE ON MOTION TO POSTPONE Noes: MOTION CARRIED Regular Assembly Meeting September 2, 1999 None moved to postpone Ordinance No. 99 -05 to October 7, 1999. Assemblymember Arndt said it was agreed at the work session to postpone the ordinance to allow discussion of the Plan in detail with Manager Freed. Ayes: Branson, Heinrichs, Spalinger, Stevens, Abell, Arndt, Bonney Unanimous Volume XXV Page 202 NEW BUSINESS NEW BUSINESS A. CONTRACTS CONTRACTS 1. Contract No. 99 -38 Refrigeration Unit Processing at the Kodiak Island Borough Landfill for the Period of September 1999 to June 2001. STEVENS, seconded by ARNDT Manager Freed said state regulations required that Freon be removed by a certified professional. She recommended approval of the contract as there were many refrigerators at the landfill awaiting disposal. ROLL CALL VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous B. RESOLUTIONS None. C. ORDINANCES FOR INTRODUCTION None. D. OTHER ITEMS Regular Assembly Meeting September 2, 1999 moved to award Contract No. 99 -38 with Kodiak Refrigeration at the rate of $52 per hour. Heinrichs, Spalinger, Stevens, Abell, Arndt, Bonney, Branson RESOLUTIONS ORDINANCES FOR INTRODUCTION OTHER ITEMS 1. Confirmation of Mayoral Appointments to APPOINTMENTS TO the Providence Kodiak Island Mental THE PROVIDENCE Health Center Advisory Board. KODIAK ISLAND MENTAL HEALTH STEVENS, moved to confirm the CENTER ADVISORY seconded by ARNDT mayoral appointment of BOARD Patricia Crowe to a term to expire December 31, 1999, and Pam Foreman to a term to Volume XXV Page 203 ROLL CALL VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous 2. Southern Region Emergency Medical Services Council Board of Directors Nomination. BRANSON, seconded by ARNDT Mayor Stevens noted that Mike Dolph, former fire chief, asked to be reappointed to the Council. There was no discussion by the Assembly. VOTE ON MOTION Unanimous voice vote INFORMATIONAL MATERIALS (No action required) A. B. MINUTES OF OTHER MEETINGS 1. Planning and Zoning Commission Meeting of June 16, 1999. 2. Kodiak Island Borough School District Board of Education Regular Meeting of July 19, and Special Meetings of August 2 and August 5, 1999. REPORTS None. Regular Assembly Meeting September 2, 1999 expire December 31, 2001 on the Providence Kodiak Island Mental Health Center Advisory Board. Spalinger, Stevens, Abell, Arndt, Bonney, Branson, Heinrichs moved to nominate Mike Dolph to a three -year term on the Southern Region Emergency Medical Services Council, Inc. NOMINATION TO THE SOUTHERN REGION EMERGENCY MEDICAL SERVICES COUNCIL, INC. INFORMATIONAL MATERIALS MINUTES OF OTHER MEETINGS REPORTS Volume XXV Page 204 C. OTHER None. CITIZENS' COMMENTS None. ASSEMBLYMEMBER COMMENTS Assemblymember Arndt was bothered by the two contract awards. He said repairs to the Middle school should have been done before school started. He said the Fire Marshall recommended repairs to the old hospital boiler room ten months ago, and he questioned that bid process. Assemblymember Abell reminded the community that the Borough had no interest in the issues surrounding the city's annexation. He was disappointed that the AML supported a yes vote on the PFD ballot measure. Mayor Stevens said the Borough decided to stay out of the annexation issue. He did not attend the last AML conference and was surprised that they supported the PFD ballot measure. Assemblymember Heinrichs congratulated employee of the month Bob Scholze as a competent staff member. He reminded the community that school was in session and to watch for children. Assemblymember Stevens also congratulated Bob Scholze. He appreciated his longevity with the Borough. Assemblymember Stevens said his father was enjoying his visit to Kodiak. Assemblymember Branson also congratulated Bob Scholze. She appreciated his involvement in the community, especially at the Brother Francis Shelter. Assemblymember Spalinger encouraged the community to call with any questions or concerns they might have regarding annexation. Mayor Stevens announced that members of the Assembly would travel to Port Lions on Monday, September 6. The assembly packet review work session of September 9 was rescheduled to Tuesday, September 21 following the joint Regular Assembly Meeting September 2, 1999 OTHER CITIZENS' COMMENTS ASSEMBLYMEMBER COMMENTS Volume XXV Page 205 assembly /council work session at 7:30 p.m. in the Borough conference room. The regular assembly meeting of September 16 was been rescheduled to Thursday September 23, 1999 at 7:30 p.m. in the assembly chambers. He announced that the state's special election would be held Tuesday, September 14, and that absentee voting was available in the clerk's office. 16. EXECUTIVE SESSION STEVENS, seconded by HEINRICHS VOTE ON MOTION Ayes: Noes: None MOTION CARRIED Unanimous At 9:05 p.m. Mayor Stevens recessed the regular meeting into executive session and invited the clerk's staff to attend. At 9:43 p.m., Mayor Stevens reconvened the regular meeting and announced that no action was taken in the executive session. There being no further business to come before the Assembly, the meeting adjourned at 9:44 p ATTEST: 4 J ith A. Nielse B rough Clerk Regular Assembly Meeting September 2, 1999 moved to convene into executive session to discuss matters pertaining to manager hire. Stevens, Abell, Arndt, Bonney, Branson, Heinrichs, Spalinger i3 at r L. Mayor Approved: 10/21/99 EXECUTIVE SESSION ADJOURNMENT Volume XXV Page 206