06/26/07 Special MeetingKODIAK ISLAND BOROUGH
Special Assembly Meeting
June 26, 2007
A Special meeting of the Kodiak Island Borough Assembly was held June 26, 2007 in the Borough
Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was
called to order at 7:30 p.m.
Present were Mayor Jerome Selby, Assembly members Tom Abell, Pat Branson, Jerrol Friend, Sue
Jeffrey, Chris Lynch, and Reed Oswalt. Staff members present were Manager Rick Gifford, E &F
Director Woody Koning, CDD Director Bud Cassidy, Clerk Nova Javier, and Deputy Clerk Marylynn
McFarland.
CITIZENS' COMMENTS
None.
CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING
A. PUBLIC HEARING
1. Resolution No. FY2007 -40 Authorizing the Approval of a Short -term Lease and Material
Sales Agreement with Brechan Enterprises, Inc. for Tracts B1, B2, B3, and B4 -A, Bells Flats
Alaska Subdivision.
JEFFREY moved to adopt Ordinance No. FY2007 -40, seconded by BRANSON.
Manager Gifford reported on the status of the current lease and noted direction was given to him by
the Assembly per Resolution FY2007 -39 to negotiate a short term lease of one year with Brechan
Inc. to lease the B Tracts. He negotiated a lease which included the following:
• Lease rate of $24,000 per year, increase of $4,000 from $20,000 per year
• Royalty at the current rate of $1.25 per cubic yard
• Payment of severance taxes
• Performance and operation standards as outlined in Exhibit B of the agreement
This short term lease would allow staff to develop its analysis of the fair market value for the
leasehold interest and allow Brechan Enterprise, Inc. to review, develop, and negotiate a lease rate
for the long -term contract.
Mayor Selby opened the public hearing.
Nick Troxell spoke, during citizens' comments, in support of Resolution No. FY2007 -40.
Tom Schwantes encouraged the Assembly to address dust control, reclamation, 200 foot buffer
zone along any existing roadway, and reserving the ponds in the current area for future hatchery.
Brian Young expressed his concern about the dust created from the Brechan gravel pit.
Lila Schwantes asked the Assembly to address dust control in the lease.
Marie Rice advocated for buffer zones along existing roadways.
Mayor Selby closed the public hearing.
Kodiak Island Borough Assembly Minutes
June 26. 2007 Pane 403
LYNCH moved to amend the existing agreement, seconded by JEFFREY as follows:
• Exhibit B, Item No. 3 to read "BEI shall use prudent efforts to minimize the noise levels to
meet ADEC regulatory requirements during its operations on the premises.
• Section i, Paragraph A to read "Loaded trucks shall use Bells Flats Road and Sargent Creek
Road while traveling between Chiniak Highway and the premises (deleted Middle Bay Drive.)
• Section i, Paragraph J to read "Dust Control. In periods of dry weather when the haul roads
become dusty, BEI shall work with the Womens Bay Service Area to reduce the dust created
by means of lignicite, calcium chloride, and /or water.
Assembly member Lynch explained this would clarify the wording of the lease. In response to
Assembly member Abell, she explained Alaska Department of Environmental Conservation (ADEC)
currently enforces the regulations regarding the noise levels. There was discussion about the
deletion of Middle Bay Drive since it was in the old lease agreement.
Mike Martin, Brechan Enterprises, Inc. Representative, noted it was status quo for them to avoid
Middle Bay Drive and would not have much of an impact deleting it from Section i, Paragraph A.
ABELL moved to amend Section i, Paragraph A to add a sentence to read "Middle Bay Drive shall
be used for Service District work, emergencies, and private deliveries only ", seconded by FRIEND.
ROLL CALL VOTE ON MOTION TO AMEND THE AMENDMENT CARRIED UNANIMOUSLY: Abell,
Branson, Friend, Jeffrey, Lynch, Oswalt
ROLL CALL VOTE ON MOTION TO AMEND AS AMENDED CARRIED UNANIMOUSLY: Branson,
Friend, Jeffrey, Lynch, Oswalt, Abell
ROLL CALL VOTE ON THE MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend,
Jeffrey, Lynch, Oswalt, Abell, Branson
B. Contract No. FY2007 -50 Phase I of the Seismic Upgrades to the Kodiak Middle School.
BRANSON moved to authorize the manager to execute Contract No. FY2007 -50 with Brechan
Enterprises, Inc. of Kodiak in an amount not to exceed $2,340,000, seconded by ABELL.
Manager Gifford reported this contract was for work at the Kodiak Middle School for seismic
upgrade, including structural, mechanical, electrical, and architectural work. Project is funded in part
by monies from a FEMA Grant. He noted there would be a rework of drawings for the Phase II of this
project.
CDD Director Cassidy reported, although there was not a signed document regarding the grant, the
funds were actually transferred from the Federal Government to the State. Documentation to
formalize the transfer should be coming soon.
Assembly member Abell explained the two -step process for this contract and the benefits of doing
the project in two phases.
ROLL CALL VOTE ON MOTION CARRRIED UNANIMOUSLY: Jeffrey, Lynch, Oswalt, Abell,
Branson, Friend
Kodiak Island Borough Assembly Minutes
June 26. 2007 Paae 404
C. Mayoral Appointments to the Solid Waste Advisory Board.
BRANSON moved to confirm the Mayoral appointments of Bill Hinkle and Marion Owen for the
three -year terms to expire 2010; Freya Holm and Richard Pillans for the two -year terms to expire
2009; and Barry Altenhoff for a one -year term to expire 2008, seconded by JEFFREY.
Mayor Selby thanked the sixteen applicants to this board. It was a tough choice for him to select only
five applications. He encouraged the other eleven to participate as their input would be valuable to
this board.
Clerk Javier noted that the board was formed to assist in identifying creative and workable solutions
to ongoing and emerging issues in solid waste management.
Assembly member Abell would vote against the appointment of Mr. Hinkle since he would be
retiring. Mayor Selby noted he spoke with Mr. Hinkle and expressed his intent to stay in Kodiak for
his retirement for at least a year and may be longer.
Assembly member Oswalt would like to see this postponed and discussed at a future work session.
Assembly member Jeffrey would vote in favor to get the board moving.
ROLL CALL VOTE ON MOTION CARRIED FOUR TO TWO: Branson, Friend, Jeffrey, Lynch (Ayes);
Abell, Oswalt (Noes)
ASSEMBLY MEMBER COMMENTS
Assembly member Friend was glad to see the appointments on the Solid Waste Advisory Board.
Assembly member Abell was glad to see the happy ending on the fishing incident with the Pruitt
family.
Assembly member Branson thanked the community members who supported the Pruitt family. She
was glad to see the efforts being put into forming a paving advisory committee to get the roads
paved in Kodiak.
Assembly member Jeffrey agreed that the dust problem in Kodiak needed to be addressed for
health and safety reasons.
Assembly member Oswalt noted that the Service Area Board should work closely with the contracts
regarding the maintenance of the roads. He was in favor of all roads being paved in Kodiak.
Assembly member Lynch hoped the extra royalty fees from the new agreement with Brechan would
increase the Womens Bay Service Area budget by $20,000 and hoped part of it could be used
toward addressing the dust issues.
EXECUTIVE SESSION
A. Borough Manager's Performance Evaluation.
BRANSON moved to convene into executive session to discuss the Borough Manager's
performance evaluation, a subject that qualifies for executive session as a matter that may tend to
prejudice his reputation or character, seconded by JEFFREY.
Kodiak Island Borough Assembly Minutes
.June? 2f 2007 Pana
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Abell, Branson, Friend, Jeffrey, Lynch,
Oswalt
Mayor Selby invited all Assembly members and Manager Gifford to participate in the executive
session. He recessed the regular meeting and called for a ten minute break at 8:30 p.m. and
convened the executive session at 8:40 p.m.
Mayor Selby reconvened the Special Meeting at 9:30 p.m.
BRANSON moved to increase Manager Rick Gifford's salary by 3% with a $3,000 bonus retroactive
to his anniversary date of Mary 24, 2007, seconded by ABELL.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Jeffrey, Lynch,
Oswalt, Abell
ADJOURNMENT
FRIEND moved to adjourn the meeting, seconded by BRANSON.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY; Friend, Jeffrey, Lynch, Oswalt, Abell,
Branson
The meeting adjourned at 9:30 p.m.
ATTEST:
Nova M. Javier, MC, Bo •ugh Clerk
KODIAK ISLAND BOROUGH
Jer me M. Selby, M
Approved: August 2, 2007
Kodiak Island Borough Assembly Minutes
June 26, 2007 Paae 406