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01/13/2005 Work SessionASSEMBLY WORK SESSION January 13, 2005 - 7:30 p.m. Borough Conference Room AGENDA CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION 1. Update on Landfill Status 2. Strategic Plan 3. Joint Work Session PACKET REVIEW INTERIM MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS ON LEAVE Branson - January 10- February 1 Wells - January 24 -28 Anderson - January 25 -31 Williams - February 2 -14 few ASSEMBLY CALENDAR January 2005 17- CLOSED Borough Offices Closed in Observance of Martin Luther King Day 5:15 pm School Board Budget Work Session - SD /CR 18- 7:30 pm Assembly /City Council Joint Work Session - CR (Kodiak Airport Systems Plan - Fisheries Issues - Joint Legislative Reception - Joint Washington D.C. Lobby Trip - Annexation) 19- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 20- 7:30 pm Assembly Regular Meeting - AC 24 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Regular Meeting - AC 25- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 26- 7:30 pm Planning and Zoning Commission Special Work Session - CR 25 -26 AML Juneau 27- 7:30 pm Assembly Work Session - CR - (Kodiak College Powerpoint Presentation - Legal Review) CANCELED City Council Regular Meeting 27 -29 SWAMC Anchorage 30 5:15 pm School Roard Budget Work Session - SD /CR February 2005 3- 7:30 pm Assembly Regular Meeting - AC 7- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Work Session - SD /CR 8- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 9- Travel Joint Legislative Reception - Juneau 9- 7:30 pm Planning and Zoning Commission Work Session - CR 10- 7:30 pm Assembly Work Session - CR (Personal Property Tax - Investment Policy (Mary Lou Pratt) - Facilities Fund) CANCELED City Council Regular Meeting 16- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 17- 7:30 pm Assembly Regular Meeting - AC 21- CLOSED Borough Offices Closed in Observance of Presidents' Day 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Regular Meeting - AC 22- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR 24- 7:30 pm Assembly Work Session - CR (Fee Schedule) 7:30 pm City Council Regular Meeting - AC 28- 5:15 pm School Board Budget Work Session - SD /CR March 2005 3- 1:30 pm Local Emergency Planning Committee - AC 7:30 pm Assembly Regular Meeting - AC 7- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Work Session - SD /CR 8- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 9- 7:30 pm Planning and Zoning Commission Work Session - CR 11 -15 Travel Washington D.C. Lobby Trip 10- 7:30 pm Assembly Work Session - CR CANCELED City Council Regular Meeting 16- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 17- 7:30 pm Assembly Regular Meeting - AC 21- 5:15 pm School Board Budget Work Session - SD /CR 22- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR 24- 7:30 pm City Council Regular Meeting - AC KODIAK ISLAND BOROUGH WORK SESSION MEETING ' 2 Work Session Meeting of: \tIkJ' lin 1-� , 65 Please print your name J 1. n 3 ( wept_ icy 4. auki IHrk(iP.(, 5. `f e7 / 6. /<e / //(4 � t 7. 8rio,r M, X 8. 9. 10. 11. 12. 13. 14. 15. North Star PTA Officers: President - Isa Stihl Wirz - 486 -4864 Vice President - Alice LeVan - 486 -2253 Secretary - Meri Holden - 486 -4305 Treasurer - Deb Kirk - 486 -5433 722 Mill Bay Road Kodiak, Alaska 99615 NORTH STAR ROAD SAFETY RESOLUTION pE©Ern JAN 5 2005 WHEREAS the North Star community is comprised of over 300 students and their families, and the school serves the entire community for a variety of functions; and WHEREAS the roads approaching North Star Elementary are under the various jurisdictions of the State of Alaska (Otmeloi Road), Service District 1 and the Kodiak Island Borough (KIB) (Lilly Drive, Antone Way, and Mallard Way), and the Kodiak Island Borough School, District (KIBSD)(parking lot and access roads); and WHEREAS the lighting, signage, and safety controls are inadequate on the above mentioned roads, and are by definition "Hazardous "; and WHEREAS there is no separated bike or pedestrian trails /paths linking North Star Elementary to the Rezanof Bike Path, and therefore, to the rest of the City and Borough; and WHEREAS the width of all the roads currently require children to play "chicken" with cars traveling at high speeds and expose them to a dangerous "luge -like" curve where Antone Way and Lilly Drive meet; and WHEREAS North Star Elementary is slated to be an Earthquake and Tsunami Shelter; THEREFORE BE IT RESOLVED that the North Star PTA recommends implementation of Pedestrian and Bike access designed to insure the safety of children and the community members accessing North Star Elementary School; and BE IT FURTHER RESOLVED a separated Bike Path be constructed on Otmeloi in 2005 to connect the entire Otmeloi corridor to Rezanof Drive with funds to include but not limited to the 2005 Omnibus Bill monies slated for Kodiak trails and roads; and BE IT FURTHER RESOLVED a comprehensive road traffic engineering and planning study be implemented to identify solutions to the Antone /Lilly /Otmeloi traffic patterns as they relate to North Star to include but not limited to the $25,000 dollars currently set aside in the KIB budget; and BE IT FURTHER RESOLVED that the KIBSD, Service District 1, and KIB work to improve the signage and lighting on all roads to include School Zone speed signs and flashing lights, appropriate one -way signs in the parking area and on Mallard Way; and BE IT FINALLY RESOLVED that a Task Force be established, consisting of two KIB Assembly members, two Service District 1 members, two KIBSD members, and two North Star parents, to examine and implement comprehensive solutions to design and insure the safety of North Star children. KODIAK ISLAND BOROUGH Submitted by: North Star PTA, December 14, 2004. CLERK'S OFFICE / COPIF� TO: 1, ASSEMBLY 1 MAYOR MANAGER �— OTHER_ Status of NOV Issued on August 10, 2004 from ADEC Solid Waste Program 1/13/05 1. Failure to cover solid waste daily under 18 AAC 60340(a): ADEC Corrective Action Required: Photographic evidence within one day of receipt of NOV. ➢ MB Action: Completed 2. Failure to contain or control leachate seeps at the boundary under 18 AAC 60.225(b)(3) ADEC Corrective Action Required: Complete repairs /corrective action. Submit plan for corrective action within 10 days of receipt of this NOV and complete corrective action within 30 days of receipt of Dept. approval of proposed plan. ➢ MB Action: A corrective action plan was submitted to ADEC within the required timeframe and was approved. However, an extension to this time frame was needed so an extension was requested. ADEC denied the extension request and to date no further communication has come from ADEC regarding potential penalties. An RFP has been developed and is currently being advertised. Bidding for this project ends on January 24, 2005. 3. Failure to control explosive gases under 18 AAC 60.350 ADEC Corrective Action Required: Conduct gas monitoring and submit monitoring results to the Department with three days of receipt of this notice. Continue the gas monitoring program in accordance with July 2000 KIB Landfill Monitoring Plan, and submit quarterly result to the Department within three (3) days of each monitoring event. ➢ MB Action: Completed 4. Failure to meet water - monitoring requirements under 18 AAC 60.810 and 60.830. ADEC Corrective Action Required: Conduct the October 2004 water - monitoring event and submit your report within 60 days of receiving the report back from the laboratory. Reporting must be in accordance with the permit and state solid waste regulations. Monitoring must be conducted in accordance with the July 2000 KIB Landfill Monitoring Plan. In addition, proper reporting for previous sampling events, including 2001, 2002, 2003 and April 2004 must be submitted in accordance with the permit and state solid waste regulations. All reports must be submitted by December 31, 2004.. ➢ MB Action Upon receipt of ADEC's clarification of proper reporting it was determined that the water laboratory under contract would not be able to provide what ADEC required. A request for an extension was submitted at the same time as the extension request for the leachate treatment system and was also denied. Consulting firms capable of conducting the work were contacted and are awaiting final KIB signatures to conduct the work. It is expected that this work will be complete by the end of February or early March. 5. Failure to meet financial assurance requirements under 18 AAC 60.398 ADEC Corrective Action Required: Submit proper financial assurance documentation to the Department within ten (10) business days of the receipt of this Notice. ➢ MB Action: Completed 6. Failure to install and maintain facility entrance sign under Permit #9125 -BA008 ADEC Corrective Action Required: Install proper signage at the facility entrance as outlined in Section II of Permit #9125 -BAOO8 and submit photographic proof of the sign to the Department within five (5) business days of receipt of notice. ➢ MB Action: Completed Page 1 of 1 1/13/2005 Borough Manager Recruitment Process As applicants respond to the advertisements, we are asking them where they heard about the job vacancy so we will gain a better understanding of which advertisements are most effective. Upon initial inquiry, we then send a Borough approved job description, a KIB application, and information on Kodiak Island from KICVB, and a municipal information page (patterned after the AML Municipal Directory), along with a cover letter. Selection Process Timeline Application Deadline Feb. 11 Initial screening of applications Bud & Nancy week of Feb. 14 Committee (Pat, Tuck, Barbara, Nancy) review & screening Feb. 22 — Mar. 04 (narrow down to 3 -5 finalists) Committee consensus on interview process to be utilized Full Assembly review of finalists Work Session, Mar. 10 (potential further narrowing of number of finalists for interview) Full Assembly interviews of finalists Mar. 11 -25 Make final selection, make offer, negotiate salary, benefits and contract terms Before end of March! ** *The above suggested schedule is ambitious, and allows for scheduling and travel conflicts of Committee and finalists. As we get closer to the time for Committee review and screening we may be able to shorten the timeline. Our goal is to have selection, offer, acceptance and contract/salary /benefits /expenses negotiated by the end of March. Status of NOV Issued on August 10, 2004 from ADEC Solid Waste Program 1/13/05 1. Failure to cover solid waste daily under 18 AAC 60340(a): ADEC Corrective Action Required: Photographic evidence within one day of receipt of NOV. ➢ MB Action: Completed 2. Failure to contain or control leachate seeps at the boundary under 18 AAC 60.225(b)(3) ADEC Corrective Action Required: Complete repairs /corrective action. Submit plan for corrective action within 10 days of receipt of this NOV and complete corrective action within 30 days of receipt of Dept. approval of proposed plan. ➢ MB Action: A corrective action plan was submitted to ADEC within the required timeframe and was approved. However, an extension to this time frame was needed so an extension was requested. ADEC denied the extension request and to date no further communication has come from ADEC regarding potential penalties. An RFP has been developed and is currently being advertised. Bidding for this project ends on January 24, 2005. 3. Failure to control explosive gases under 18 AAC 60.350 ADEC Corrective Action Required: Conduct gas monitoring and submit monitoring results to the Department with three days of receipt of this notice. Continue the gas monitoring program in accordance with July 2000 KIB Landfill Monitoring Plan, and submit quarterly result to the Department within three (3) days of each monitoring event. ➢ MB Action: Completed 4. Failure to meet water - monitoring requirements under 18 AAC 60.810 and 60.830. ADEC Corrective Action Required: Conduct the October 2004 water - monitoring event and submit your report within 60 days of receiving the report back from the laboratory. Reporting must be in accordance with the permit and state solid waste regulations. Monitoring must be conducted in accordance with the July 2000 KIB Landfill Monitoring Plan. In addition, proper reporting for previous sampling events, including 2001, 2002, 2003 and April 2004 must be submitted in accordance with the permit and state solid waste regulations. All reports must be submitted by December 31, 2004. ➢ MB Action Upon receipt of ADEC's clarification of proper reporting it was determined that the water laboratory under contract would not be able to provide what ADEC required. A request for an extension was submitted at the same time as the extension request for the leachate treatment system and was also denied. Consulting firms capable of conducting the work were contacted and are awaiting final KIB signatures to conduct the work. It is expected that this work will be complete by the end of February or early March. 5. Failure to meet financial assurance requirements under 18 AAC 60.398 ADEC Corrective Action Required: Submit proper financial assurance documentation to the Department within ten (10) business days of the receipt of this Notice. ➢ MB Action: Completed 6. Failure to install and maintain facility entrance sign under Permit #9125 -BA008 ADEC Corrective Action Required: Install proper signage at the facility entrance as outlined in Section II of Permit #9125 -BAOO8 and submit photographic proof of the sign to the Department within five (5) business days of receipt of notice. ➢ MB Action: Completed Page 1 of 1 1/13/2005 DATE: TO: FROM: RE: KODIAK ISLAND BOROUGH Engineering & Facilities 710 Mill Bay Road Kodiak, AK 99615 (907) 486 -9348 (p) (907) 486 -9394 (f) tmi tchell@kib.co.kodiakak.us MEMORANDUM January 3, 2005 Bud Cassidy, Director of Engineering and Facilities Tracy L. Mitchell, Environmental Specialistk1V' Alan R. Torres, Baler/Landfill Supervisor C17 Purchase of New/Used Dozer or Repairs to Existing 1984 D -7 Dozer The landfill's D -7 Caterpillar has the responsibility to perform a number of tasks. It has the primary duties of stabilizing and developing slopes, compacting the construction/demolition waste, pushing up the rock pile used for cover material, spreading daily cover material over the municipal waste, pushing the metal pile, maintaining /building roads and ramps, ice removal and when the baler is down it is used to compact the municipal waste fill operations. The D7 is a 1984 machine that was purchased used in 1989 for $128,830 and became fully amortized in December 1998. In anticipation of selling it in 2001 a substantial amount of work was conducted on the machine, including sandblasting and a paint job. The costs for this work, as well as the repairs conducted over the years, is $85,913.66. Therefore the total costs to date for the D7 come to $214,743.66. The D7 has been in disrepair for sometime and needs significant repair work done to it in order to make it safe to work with and capable to perform the tasks that are required of it. The work includes mechanisms that the baler staff will be unable to repair. In the recent past the local vendors have told the KIB that they are either unable or unwilling to conduct repair work on the landfill's heavy equipment. As a result a quote was obtained from NC Machinery in Anchorage and it is estimated that the repair work will cost $106,856.22. It is expected that the D7 will have to be transported to Anchorage for the work to be conducted. The transportation costs via ferry and truck will cost approximately $3,176. This makes the estimated total cost to repair $110,032.22 and the total costs to date $324,775.88 for the D7. Inquiries have been made regarding the cost to purchase a new D -6 Caterpillar with a waste handling package. A dozer with a waste handling package is better suited to the demands of landfill work and has guards in place to prevent damage that occurs with the compaction of construction /demolition materials. The cost estimate also includes a ripper for the machine that will allow for the landfill staff to scarify road surfaces in the winter months. The cost estimate for this machine, FOB Kodiak, is $330,000. An inquiry was also made regarding a used machine. It should be noted that the availability of used CAT dozers with waste handling packages is very limited. However, there is a used CAT D8R machine that will become available in the next month. It is 5 years old, has 12,000 hours and includes the waste handling package and ripper for approximately $220,000. Shipping costs will have to be added to this amount. While this number is a rough estimate it provides aballpark cost. It is recommended that either a new /used piece of equipment be purchased via the bid process or a formal bid be advertised to repair the current D -7 Caterpillar. It is imperative to move forward on this because baler staff is unable to effectively carry out the duties that require the dozer — all of which are critical to the operations at the landfill. PARTS for D -7 Dozer 12/19/91 $ 352.72 PARTS for D -7 Dozer 1/17/92 $ 260.37 PARTS for D -7 Dozer 1/23/92 $ 6,75 Dozer Ripper Tooth 2/11/93 $ 84.89 BATTERY for Dozer 2/18/94 $ 186.81 PARTS FOR DOZER 9/29/94 $ 71.32 PARTS FOR DOZER 9/30/94 $ 233.24 TRACK GUARD ASSEMBLY 11/04/94 $ 214.54 OIL CAP ASSEMBLY 11/08/94 $ • 11.21 PARTS FOR DOZER 11/14/94 $ 5,224.48 MUFFLER For D7 1/30/95 $ 184.73 REPAIR OF HYDRAULIC Hoses 7/19/95 $ 1,000.00 REPAIR OF DOZER 8/02/95 $ ' 383.25 PARTS & FILTERS FOR Dozer 10/06/95 $ 904.56 DOZER REPAIR 11/14/95 $ 6,710.00 DOZER REPAIR 11/14/95 $ 3,022.87 TROUBLESHOOT ENGINE 1/23/96 $ 289.75 OIL CAP 3/20/96 $ 15.33 R & M ON CAT D76 3/29/96 $ 1,138.04 R & M ON CAT D76 3/29/96 $ 750.00 PUSH ARM BRACKET 4/13/96 $ 819.15 BEARING FOR D -7 4/20/96 $ 89.73 CREDIT -NUTS & BOLTS 10/24/96 26.28 - SHOES /BOLTS /COTTER PINS 12/19/96 $ 208.86 ROLLER/SCREWS/WASHERS 2/06/97 $ 453.80 REPAIR OF D -7 DOZER 6/18/97 $ 38,086.36 BATTERIES FOR D7 DOZER 7/03/97 $ 399.78 DOZER PARTS FOR BALER 1/09/98 $ 381.96 TO VOID CHECK # 27708 1/09/98 381.96 - DOZER PARTS FOR BALER 1/09/98 $ 381.96 BODY ASSEMBLY /D 7 DOZER 2/04/98 $ 271.68 ESTIMATED FREIGHT 2/05/98 $ 29.75 TEETH FOR BUCKET LOADER 6/10/98 $ 262.08 R/M D -7 DOZER $ 323.51 R/M DOZER @ BALER 10/30/98 $ 11,030.48 HYDRO CYLINDER 11/13/98 $ 1,217.02 R/M D -7 DOZER 12/08/98 $ 149.00 PARTS FOR D -7 DOZER 11/06/99 $ 386.79 R/M W-20 C and D7 /Baler 3/24/01 $ 2,365.50 SANDBLAST /PAINT D -7 Dozer 3/31/01 $ 2,996.00 PARTS /D -7 CAT 4/19/01 $ 235.09 7M4710- BELTS /D -7 DOZER 7/19/02 $ 77.46 DOZER PARTS /LANDFILL 7/24/02 $ 253.52 SHIPPING-DOC ANC278632B 8/07/02 $ 14.30 ELEMENT /GASKETS 9/06/02 $ 68.98 D7 IDLER REBUILT W /BLOCKS 4/09/03 $ 1200.00 REPLACE Front Idler Dozer 4/12/03 $ 1,480.00 PARTS -D7 DOZER/LANDFILL 6/21/03 $ 107.01 SEAL KIT /NUT 7/29/03 $ 183.04 CAT HEATER 12/19/03 $ 46,65 RIPPER TEETH, ETC 6/05/04 $ 35939 TVL TO ADQ- DIAGNOSE CAT 7/29/04 $ 989.95 $ 85,913.66 D7G Dozer Rock Bucket 1 001 - b91 01/27/89 10/14/92 5265.45 1 00'0 7 o o'n. 7 V0 NM .. M 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 ad,f j ;uamdmba #';aaV'I`JI rparidairawl Purchase Date Cost anwA atuelsS1 ii O p _ N M M M M M M M M d d p p 0 0 0 F 4 0 0 0 0 0 0 0 0 1 'n 10 10 vl (n 10 10 'n IO Vn 'O ' n 'n to hhhhrrrrrrh r r rrrrrrrrr r(: nrrrrr O O N O o N o O N N O O O O O O o O O O 0 N C o 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N M M M M M (' M M M M M M M M M M Ci M M M M M M M M M M M M M O` O` O\ O` O O O O ,-- N N N N M M M M d' 1 V 'O 00 00 00 00 O\ Q O\ 0' 0 O O` 0\ 0 0' 0' 01 0' T O' O, - 0 00 .--+ •. O O - -, - -i 0 0- ........ . .-+ ,-4\- O O ,\-- - 0 0 -- . - M M M M M M M M M M M M M` M M-. M M` M m M-.'- M M M' 0 C� M 0 0 a M 0 (� O O (4 M '.0 0, (� M T (� M '0 0' a M T O 0 0 -- 0 0 0 — 0 0 0 O ,-. 0 0 0 -, 0 0 0 ,-, O O O --- O H 7 W w v .., ,--, i-. 1 , a Fully Amortized 12/31/1998 I D -7 Cat 01/27/89 00'0£8`8Zi Ioo 1 00'0£8`821 10 12,883.00 I adAi luamdmbs ?urchase Date I lso I anPPA a2un fec Depreciable Va1u' tn:zruouty AtrcaA ?Jr] er t 0 0 w d d .0 O vl 0 N M T cn 0 0 r O N M O 0 " 0 v) r N M a r N N M N h r O N M 01 r O N M T 0 a 0 h r O N M 0" a 'n r O N m 0o en 0' (0 0 r tel N M 00 r O N M 00 '0 0 N O N M 00 0' a O 00 00 00 N — 0 0 O 4K O 8 O M 00 N 0' en 0 O C M 00 00 N a, a O C M 00 00 N O 0 0 0 N O 0 0 8 O m 00 00 N .. O 0 m 0 O G M 00 00 N 0 .. a 0 O m 00 N .. 0 O M oo O O 00 00 N O O 0 O O M 00 00 N O a O a 00 00 N O 0 8 00 00 00 .ti O tea 0 O C m 00 00 N 0 0 O M 00 00 N N O O O M 00 00 N m en 0 8 M N O 0 N 0 0 0 Q c O N 0 O E C O N 2 0) IV. EXPECTED USEFUL LIFE OF SOLID WASTE MANAGEMENT COMPONENTS The expected life of the components of the solid waste management system, including proposed closure date of landfill. The major components of the landfill are: 1. Baler Building - Expected life is 50 years (1987 to 2037). 2. Baler - Harris Press - expected life is 20 years (1987 to 2007). A major overhaul is being performed in Spring 1997. 3. Hazardous Materials Building - Expected life is 15 years (1995 to 2010). 4. 2000 Case Loader - Expected life is 10 years (planned replacement in FY 2010). (Cost $190,968) 5. 1989 Caterpillar D &G Dozer - Expected life is 10 years (planned replacement in FY 99). 6. 1991 Bale Dump Truck - Expected life is 10 years (1991 to 2001) . 7. Scale - Expected life is 15 years (1995 to 2010). 8. Flattener (Metals Crusher) - Expected life is 10 years (1992 to 2002). 9. 1993 Case Uniloader - Expected life is 10 years (1993 to 2003). 10. 1994 Dump Truck to haul cover material - Expected life is 10 years (1994 to 2004). 11. Existing landfill footprint - Expected life is 6 to 10 additional years, depending on final design of the vertical expansion and future waste volumes. 12. Incinerator - Expected life is 15 years (1994 to 2009). 13. Used Oil Heater - Expected life is 15 years (1993 to 2007). 13611 Cat "' Nines 3306 Glass Power 133 kW 179 HP flywheel Power 123 kW 165 HP 11- H1atle Capacity* 11.2 nt 14.3 yd' • Seini U -glade tor b611 '3m 3306 1134 kW 247 HP 171 kW 230 HP 16.Om' 22.0 yd' ngH 3406C 245 kW 320 HP 220 kW 305 HP 24.7 in' 32.4 ytl' 09H 3400E 330 kW 441 HP 302 kW 05 HP 33.5 in 43.8 yd MOH 3412E 457 kW 613 HP 425kW 570 HP 40.0 in' 63.9 yd' D6R, DM, D8R, D9R, D10R Waste Handler Specifically designed for waste handling and landfill debris environments. Waste Handling Guards Guards for the radiator, engine compartment, crankcase (belly), and tilt cylinder lines provide protection for critical machine components under harsh waste handling environments. pg• Caterpillar® Waste Handling Track -Type Tractors offer a variety of options to meet the demands of specific waste handling needs. The field proven, specially designed modifications will work in the severest of landfill conditions. 2 Waste Handling Guards Debris protection guards for the idler seals, pivot shaft seals, and final drive seals help prevent damage to the seals and reduces downtime and costly repairs. pg.5 Debris Resistant Features A variety of debris environment features are included with the Waste Handling Arrangement to reduce plugging, extend service life, and enhance productivity. pg. 6 Required Attachments These attachments are required and must be ordered with the basic waste disposal arrangement. These include engine enclosures, hydraulic and fuel tank guards, ROPS cab, and cylinder mounted lights. pg. 7 Recommended Options These options are highly recommended to complement the waste disposal arrangement and ensure peak performance. These options, including landfill blades, striker bars, and specially designed track shoes help increase productivity, prevent spilling, and reduce refuse packing. A laminated thermal shield, trash core AMOCS radiator, FlexxairerM fan, and SY- KLONE turbine precleaner prevent plugging and reduce heat and debris build -up. pg. 8 - Waste Handling Arrangement Extensive guarding helps protect critical machine components, body panels and the radiator from being damaged by debris. Minimizing build -up helps prevent component damage. Hinged radiator guard protects the cooling system. It comes equipped with two quick release "T" handles for the center - opening guard, allowing easy access to the radiator for cleaning. Covers protect the handles from damage. Special hinge latches retain the guard in the open or closed positions. Crankcase (belly) guards serve a dual purpose. They help prevent contact damage to vital power train components, and help keep debris out of the power train compartments. Note: The D8 features a guard that can be hydraulically raised and lowered. 4 Tilt cylinder line guards help protect hydraulic lines from contact damage, while maintaining hose flexibility. Chassis guards help protect the engine compartment by deflecting debris from rising upward along the chassis. Pivot shaft seal guards help prevent debris from entering and damaging the Duo -Cone seals as well as the bolts on the pivot shaft seal retainers. Note: The D6R does not have a pivot shaft. Final drive seal guards help prevent wire, nylon strapping, etc., from wrapping around and damaging the Duo -Cone seals. The outer guard is now stationary, thicker, and has increased hardness, all of which help prevent excessive wear from debris. Idler seal guards help keep wire, fishing line, strapping, etc., from wrapping around and damaging the Duo -Cone seals. • This design offers superior protection to the seal. Debris would have to make four 90 degree turns, penetrate the packing material, and then make two additional 90 degree turns. 5 Debris Resistant Features Additional landfill modifications enhance productivity and help prevent damage. Rear, tank mounted lights are relocated on the ROPS which removes the lights from the concentrated debris environment to help protect them from damage. Combinations vary depending on each model. C ST S Heavy duty steps and handles are manufactured from plate steel and solid rod to withstand the rigors of landfill operation. 6 Front lights are mounted on top of the bulldozer lift cylinders allowing them to project light over the trash rack and keep the lights above the concentrated debris environment for longer service life. High - capacity alternator provides additional power required for electrical accessories such as supplemental lights and communications and entertainment radios. Note: 75 amp alternator (D6R, D7R, D8R, D9R)4 . 100 amp alternator (DIOR) Raised prescreener helps reduce the likelihood of airborne paper or plastics plugging the air intake. It provides a larger air inlet. Required !Attachments These 'options must be ordered in addition to the basic waste disposal arrangement. Engine enclosures consist of perforated hood and side panels. The enclosures help prevent airborne materials from entering the engine compartment and help reduce radiator plugging which can cause cooling system problems. Supplemental cylinder mounted lights (two front) are repositioned from the fenders opening to the top of the cylinders. The fender openings are covered with plates to prevent debris from entering. Note: This option is available on the D8R, D9R, and DIOR. Hydraulic and fuel tank guard helps protect implement hydraulic oil tank, battery box and fuel tank. • Plates are included to cover the light openings after they are repositioned on top of cylinders and ROPS. Other Required Attachments Per Model: • ROPS cab for all models. • DIOR rear power train guards • DIOR striker bar with cwt or drawbar. • D7R extreme service crankcase guards. • D7R lights (6) . • D6R extreme service crankcase guards • O6R lights (4) Recommended Options Several additional options are recommended to assist in matching your site requirements. Caterpillar landfill blades increase the dozing capacity in trash and helps prevent material from spilling over the blade and entering the radiator. Wear plates are available, and are recommended when working in highly abrasive materials. Front striker bars are angled design to prevent debris from riding up the track and damaging the fenders or fuel and hydraulic tanks. • The striker bar mounts are included in the basic waste handling arrangement. This allows the striker bars to be easily mounted if they are not initially ordered. Trapezoidal track shoes reduce refuse packing within the track and reduces track chain tightening and accelerated pin and bushing wear. The trapezoidal holes relieve packing by allowing the sprocket to punch out dirt and debris. Rear striker bars incorporate a rigid drawbar and a housing with large access doors for storage on machines not equipped with rippers. For machines with rippers, striker bars mount on ripper frame. Note: DIOR has rear counter - weights instead of a housing with doors. SY- KLONE® turbine air precleaner removes large particulates from the incoming air before they reach the air filter and extends filter life two to four times. The turbine inside creates a vortex with the incoming air to eject particulates. This unit converts the standard, single -stage air cleaner to a two -stage system. This option includes a screen and a dash - mounted air cleaner indicator. Radiator )AMOCS) utilizes an exclusive two pass cooling system and increased cooling surface area to provide significantly more cooling capacity than conventional systems. A trash core radiator is available with six fins per inch, replacing the standard nine fins per inch. Note: DIOR has nine fins per inch only. Laminated thermal shields cover the exhaust stack inside the compartment, hot -side of the turbocharger, and the exhaust manifold. These shields reduce surface temperatures well below the flash point of most common combustibles encountered. FlexxaireTm tan engine control system automatically reverses fan pitch at preset intervals to purge debris from the radiator and engine compartment. The operator also can manually purge the fan at any time. The thermostatically controlled fan provides optimum engine operating temperature. IlUGU111111G11LIUU UF1t1U1IO Features for peak performance. ROPS- mounted air conditioner condenser and fans are relocated from the engine compartment to the ROPS. ■ Moving the condenser and fans away from the radiator reduces the concentration of debris and plugging. This relocation also increases the calculated cooling capacity of the machine for operation in higher temperatures. Note: The ROPS- mounted position raises the height of the D8R, D9R, and DI OR an additional 30.5 cm (12 inches). Adjustable armrests help improve operator comfort for shift -long productivity. No tools required. ROPS - mounted air conditioner condenser and fans for the D6R and D7R are mounted to the back of the ROPS to maintain overall machine height. Black painted hood, cylinders, and back of blade reduces glare from lights while operating at night and also while operating in direct sunlight. Hydraulic rippers are available as single or multi -shank to penetrate tough material fast and rip thoroughly. 10 Status of NOV Issued on August 10, 2004 from ADEC Solid Waste Program 1/13/05 1. Failure to cover solid waste daily under 18 AAC 60340(a): ADEC Corrective Action Required: Photographic evidence within one day of receipt of NOV. ➢ MB Action: Completed 2. Failure to contain or control leachate seeps at the boundary under 18 AAC 60.225(b)(3) ADEC Corrective Action Required: Complete repairs /corrective action. Submit plan for corrective action within 10 days of receipt of this NOV and complete corrective action within 30 days of receipt of Dept. approval of proposed plan. ➢ MB Action: A corrective action plan was submitted to ADEC within the required timeframe and was approved. However, an extension to this time frame was needed so an extension was requested. ADEC denied the extension request and to date no further communication has come from ADEC regarding potential penalties. An RFP has been developed and is currently being advertised. Bidding for this project ends on January 24, 2005. 3. Failure to control explosive gases under 18 AAC 60.350 ADEC Corrective Action Required: Conduct gas monitoring and submit monitoring results to the Department with three days of receipt of this notice. Continue the gas monitoring program in accordance with July 2000 KIB Landfill Monitoring Plan, and submit quarterly result to the Department within three (3) days of each monitoring event. ➢ MB Action: Completed 4. Failure to meet water- monitoring requirements under 18 AAC 60.810 and 60.830. ADEC Corrective Action Required: Conduct the October 2004 water - monitoring event and submit your report within 60 days of receiving the report back from the laboratory. Reporting must be in accordance with the permit and state solid waste regulations. Monitoring must be conducted in accordance with the July 2000 KIB Landfill Monitoring Plan. In addition, proper reporting for previous sampling events, including 2001, 2002, 2003 and April 2004 must be submitted in accordance with the permit and state solid waste regulations. All reports must be submitted by December 31, 2004. ➢ MB Action Upon receipt of ADEC's clarification of proper reporting it was determined that the water laboratory under contract would not be able to provide what ADEC required. A request for an extension was submitted at the same time as the extension request for the leachate treatment system and was also denied. Consulting firms capable of conducting the work were contacted and are awaiting final KIB signatures to conduct the work. It is expected that this work will be complete by the end of February or early March. 5. Failure to meet financial assurance requirements under 18 AAC 60.398 ADEC Corrective Action Required: Submit proper financial assurance documentation to the Department within ten (10) business days of the receipt of this Notice. ➢ MB Action: Completed 6. Failure to install and maintain facility entrance sign under Permit #9125 -BA008 ADEC Corrective Action Required: Install proper signage at the facility entrance as outlined in Section II of Permit #9125 -BAOO8 and submit photographic proof of the sign to the Department within five (5) business days of receipt of notice. ➢ MB Action: Completed Page 1 of 1 1/13/2005 October 8, 2004 To the Board of Directors of Alaska Municipal League ELGEE REHFELD MERTZ, LIE CERTIFIED PUBLIC ACCOUNTANTS 9309 Glacier Highway, Suite B -200 • Juneau, Alaska 99801 907.789 -3178 • FAX 907 789.7128 • www.ermcpa.com nEcErn 1 IA JAN 1 1 2005 I J RPROUGH CLERK'S OFFICE We have audited the financial statements of Alaska Municipal League as of and for the year ended June 30, 2004, and have issued our report thereon dated October 8, 2004. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in our engagement letter dated June 1, 2004, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement and are fairly presented in accordance with U.S. generally accepted accounting standards. Because an audit is designed to provide reasonable, but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. As part of our audit, we considered the internal control of Alaska Municipal League. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance conceming such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of Alaska Municipal League's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the organization are described in Note 1 to the financial statements. We noted no transactions entered into by Alaska Municipal League during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We noted no accounting estimates that were both sensitive and significant. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on Alaska Municipal League's financial reporting process (that is, cause future financial statements to be materially misstated). In our judgment, none of the adjustments we proposed, whether recorded or unrecorded by the League either individually or in the aggregate, indicate matters that could have a significant effect on the League's financial reporting process. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our lmowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the organization's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. This information is intended solely for the use of the Board of Directors and management of Alaska Municipal League, is not intended to be, and should not be used by anyone other than these specified parties. Sincerely, ALASKA MUNICIPAL LEAGUE Internal Control and Operating Comments October 8, 2004 October 8, 2004 Board of Directors Alaska Municipal League, Inc. Juneau, Alaska: Sincerely, ELGEE REHFELD MERTZ, ac CERTIFIED PUBLIC ACCOUNTANTS 9309 Glacier Highway, Suite B -200 • Juneau, Alaska 99801 907.789 -3178 • FAX 907.789.7128 • www.ermcpa.com In planning and performing our audit of the financial statements of Alaska Municipal League, Inc. (the League), we considered its internal controls in order to determine our auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide assurance on internal controls. We have not considered the internal controls since the date of our report. However, during our audit we noted certain matters that are opportunities for strengthening internal controls and operating efficiency. We also reviewed the status of the prior year comments. The memorandum that accompanies this letter summarizes our comments and suggestions regarding those matters. This letter does not affect our report dated October 8, 2004, on the financial statements of the League. We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestions with appropriate members of management, and will be pleased to discuss them in further detail at your convenience, or otherwise assist in their implementation. CURRENT YEAR INTERNAL CONTROL AND OPERATING COMMENTS AND RECOMMENDATIONS Document Minutes of Board Meetings Review and Approval During our review of Board of Director meeting minutes we noted that minutes from prior meetings are not being reviewed and approved at subsequent meetings. Meeting minutes are corporate record and it is important that assertions made and items discussed during Board meetings are approved by the Board. We recommend that the Board of Directors approve the minutes of all Board meetings by documenting their approval in subsequent meetings minutes. Document Board Review of Financial Information in Minutes We noted that financial information was provided to the Board for their review prior to each meeting. However, there was no indication in the minutes that this information was presented or reviewed during the meeting. We think the presentation and review of financial information by the Board is a prudent practice. We recommend that financial information be presented and reviewed during monthly board meetings. This review should be documented in the minutes with a statement to the effect that "Month and year - to -date operating results were presented to the Board and discussion relating to those results ensued." Cross - training We noted that the Business Manager has control of many responsibilities essential for the smooth and efficient operation of AML. Executive skill and knowledge of critical areas should not be centralized in any single employee, because this substantially increases the potential risk of loss in the event of that employee's incapacity or leaving the employment of the organization. We strongly recommend that AML insure continuity of its operations through the cross training of duties in these critical areas. Providing cross training allows for employees to back up one another and can be a very effective means to accomplish this objective. We recommend that a cross training of responsibilities to appropriate employees and otherwise ensuring that there is a sufficient "back up knowledge base" in other employees will greatly benefit AML in the event of a loss of a single critical employee. STATUS OF PRIOR YEAR INTERNAL CONTROL AND OPERATING COMMENTS Develop Accounting Policies and Procedures Manual Prior comment We recommended that Venus Zink develop a written manual that outlines the procedures for day -to- day accounting operations and policies. Status Management has resolved this issue. Payroll File Documentation Prior comment We recommended that all personnel files be reviewed for a completed I -9 form. Status Management has resolved this issue. Establish Asset Capitalization Threshold Prior comment We recommended that the League establish a capitalization threshold to at least $2,500. Status Management has resolved this issue. Board Meetings Prior comment We recommended that the Board of Directors approve the minutes of all Board meetings and copies of approved minutes be maintained in an accessible location. Status Comment repeated. See Board Meetings comment above. Document Board Review of Financial Information in Minutes Prior comment We recommended that financial information be presented and reviewed during monthly board meetings. Status Comment repeated. See Document Board Review of Financial Information in Minutes comment above. Update Signature Cards Prior comment We recommended that signature cards for all AML bank accounts be updated and that the former Director of Member Services be removed as a check signor. Status Management has resolved this issue. ALASKA MUNICIPAL LEAGUE, INC. Management's Discussion and Analysis and Finanical Statements Management's Discussion and Analysis Financial Statements Auditors' Report Statements of Net Assets Statements of Revenues, Expenses and Changes in Net Assets Statements of Cash Flows Notes to Financial Statements Table of Contents Page I -III 1 2 3 4 5 -9 ALASKA MUNICPAL LEAGUE, INC. Management's Discussion and Analysis The Alaska Municipal League (League) is a voluntary, nonprofit, nonpartisan, statewide organization of over 137 cities, boroughs, and unified municipalities in Alaska. The League is committed to maintaining and supporting Alaska's local governments and local government leaders. The League provides technical assistance training, legislative advocacy and information to its members. Mission • Represent the unified voice of Alaska's municipalities to successfully influence favorable federal and state legislation, programs and policies; • Build consensus and partnerships with organizations and the public to solve Alaska's challenges; and • Provide training and joint services to strengthen Alaska local government. Financial Highlights The League's total assets at June 30, 2004 were $1,474,717, which is an increase of $1,324 or .6% over June 30, 2003. The assets of the League exceeded its liabilities at the close of the fiscal year by $1,442,884 (reported as net assets), a decrease in net assets of $7 or .07% over June 30, 2003. The League's operating revenue was $805,864 during the fiscal year 2004. The League's operating expense was $817,759 during fiscal year 2004. Overview of the Financial Statements The League is a member -owned government corporation and is accounted for as an enterprise fund. As such, the League's financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied on an accrual basis. Under the accrual method of accounting, the same method used by private sector businesses, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred. The three basic financial statements of the League are as follows: Statements of Net Assets - This statement presents information regarding the League's assets, liabilities and net assets. Net assets represent the total amount of assets less the total of liabilities. The Statements classify assets, liabilities and net assets as current, non - current and restricted. Statements of Revenues, Expenses and Changes in Net Assets — This statement presents the League's interest income, costs of funds, operating expenses and changes in net assets for the fiscal year. Statements of Cash Flows — This statement presents cash flows from operations, non - capital financing, capital, and investing activities. The League presents its cash flow statements using the direct method of reporting operating cash flows. -I- Assets: Current assets Noncurrent assets Total assets Liabilities: Current liabilities Total liabilities Operating revenue Operating expenses Non - operating revenue Change in Net Assets Net assets- beginning Net assets- ending ALASKA MUNICPAL LEAGUE, INC. Management's Discussion and Analysis Financial Analysis The following condensed financial information was derived from the League's statements and reflects the League's changes during the fiscal year: 2004 $ 1,473,393 1,324 1,474,717 31,833 31,833 Net assets: Unrestricted net assets $ 1,441,884 1,442,891 (.07 %) 2004 $ 805,864 (817,759) 11,888 (7) 1,442,891 $ 1,442,884 Percentage 2003 Change 1,461,848 .8% 4,552 (71 %) 1,466,400 .6% 2003 741,677 (754,170) 74,393 61,900 1,380,991 $ 1,442,891 23,509 35% 23,509 35% Percentage Change 9% 8% (84 %) 100% 4% financial The League experienced another solid operating year. There was an increase in associate members, and more timely collection of member dues, which also decreased, accounts receivable for the year. Operating expenses increased proportionately to operating revenues resulting in a $7 decrease in net assets for 2004. League Activities and Conditions Affecting Financial Position During 2004 the League maintained it's strong financial position by increasing its membership and employing careful spending habits while maximizing revenues. The League has investments valuing over $1,000,000, which provides financial stability, as well as a source of revenue. The solid financial performance helped to continue the League's commitment to maintaining and supporting Alaska's local governments and local government leaders. Another reason for maintaining a strong fiscal position is the League's long term State of Alaska Public Employees Retirement Program (PERS) liability. Like all cities, boroughs, and school districts, the League currently faces a long term PERS liability. This liability currently totals over $1,000,000. -II- ALASKA MUNICPAL LEAGUE, INC. Management's Discussion and Analysis Contacting the League's Financial Management This financial report is designed to provide our members with a general overview of the League's finances and to demonstrate the League's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Executive Director of the League at (907) 586 -1325. -III- To the Board of Directors of Alaska Municipal League, Inc. Juneau, Alaska ELGEE REHFELD MERTZ, LIE CERTIFIED PUBLIC ACCOUNTANTS 9309 Glacier Highway, Suite B -200 • Juneau, Alaska 99801 907.789 -3178 • FAX 907.789.7128 • www.ermcpa.com INDEPENDENT AUDITORS' REPORT We have audited the accompanying basic financial statements of Alaska Municipal League, Inc. (the League) as of and for the years ended June 30, 2004 and 2003, as listed in the table of contents. These financial statements are the responsibility of the League's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the League as of June 30, 2004 and 2003, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1 to the financial statements, the League adopted the provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements — and Management Discussion and Analysis for State and Local Governments, in fiscal year 2004 effective July 1, 2003. The Management's Discussion and Analysis on pages I -III, is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. October 8, 2004 ALASKA MUNICIPAL LEAGUE, INC. STATEMENT OF NET ASSETS June 30, 2004 and 2003 2004 2003 ASSETS Current Assets Cash and cash equivalents $ 266,522 $ 307,380 Short-term investments 1,051,144 996,642 Accounts receivable - related party 150,136 100,000 Accounts receivable 2,022 54,257 Prepaid expenses 3,569 3,569 Total Current Assets 1,473,393 1,461,848 Noncurrent Assets Capital assets: Equipment, net 1,324 4,552 Total Assets LIABILITIES AND NET ASSETS Current Liabilities Accounts payable 5,712 2,240 Payroll liabilities 20,540 21,269 Deferred revenue 5,581 Total Current Liabilities 31,833 23,509 NET ASSETS Unrestricted 1,474,717 1,466,400 $ 1,442,884 $ 1,442,891 The accompanying notes to financial statements are an integral part of these statements. ALASKA MUNICIPAL LEAGUE, INC. STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS Years Ended June 30, 2004 and 2003 2004 2003 OPERATING REVENUES Membership dues $ 377,627 $ 346,854 AMLIP income 141,381 102,509 Service programs 100,000 100,000 Conference 86,193 86,304 Contract income 34,900 32,400 Associate dues 22,649 10,100 Publications and printing 17,661 19,735 Miscellaneous 14,119 31,506 NACO/PEBSCO income 6,779 5,869 AML -JIA service income 4,555 6,400 Total Operating Revenue 805,864 741,677 OPERATING EXPENSES Wages 271,922 285,686 Employee benefits 129,488 137,196 Conference 74,189 91,102 Professional services and contracts 57,919 38,265 Travel and per diem 47,110 37,002 Bad debt expense 44,291 4,630 Publications and printing 25,576 20,854 Telephone and utilities 24,841 26,157 Dues 24,637 18,108 Payroll taxes 23,124 24,402 Office rent 22,255 20,262 Other 21,694 8,693 Equipment rental 15,181 12,013 Office supplies 10,949 8,259 Denali Commission 10,000 Postage 7,828 9,994 Insurance 3,527 4,630 Depreciation 3,228 5,095 Training 1,822 Total Operating Expenses 817,759 754,170 Operating Expenses (11,895) (12,493) NONOPERATING REVENUE Interest income 11,888 14,139 Denali Commission income 60,254 Total Nonoperating Revenues 11,888 74,393 Change in Net Assets (7) 61,900 Beginning Net Assets 1,442,891 1,380,991 Ending Net Assets $ 1,442,884 $ 1,442,891 The accompanying notes to financial statements are an integral part of these statements. ALASKA MUNICIPAL LEAGUE, INC. STATEMENTS OF CASH FLOWS Years Ended June 30, 2004 and 2003 2004 2003 CASH FLOWS FROM OPERATING ACTIVITIES Membership and conference $ 516,055 $ 405,165 Other revenues 337,489 302,119 Denali Commission income 60,254 AML -JIA service income (45,581) 6,400 Interest received 11,888 14,139 Cash paid to suppliers and employees (806,207) (747,239) Net Cash Provided by Operating Activities 13,644 40,838 CASH FLOWS FROM INVESTING ACTIVITIES Equipment purchases (2,020) Sale (purchase) of short -term investments (54,502) 36,455 Net Cash Provided by (Used For) Investing Activities (54,502) 34,435 Net Increase (Decrease) In Cash and Cash Equivalents (40,858) 75,273 Cash and Cash Equivalents at Beginning of Year 307,380 232,107 Cash and Cash Equivalents at End of Year $ 266,522 $ 307,380 RECONCILIATION OF CHANGE IN NET ASSETS TO NET CASH PROVIDED 13Y OPERATING ACTIVITIES Change in net assets $ (7) $ 61,900 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 3,228 5,095 (Increase) Decrease in: Accounts receivable 2,099 (27,993) Increase (Decrease) in: Accounts payable 3,472 1,105 Payroll liabilities (729) 731 Deferred revenue 5,581 Net Cash Provided by Operating Activities $ 13,644 $ 40,838 The accompanying notes to financial statements are an integral part of these statements. -4- ALASKA MUNICIPAL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS For the Years Ended June 30, 2004 and 2003 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The League is an incorporated organization with a membership comprised of almost all the municipalities in the State of Alaska. The League's mission is to provide a forum for the purposes of discussion and analyzing problems common to the various municipalities, to represent municipal interests before the state and federal government, and to provide collective services to its members. Basis of Presentation The financial statements of the League have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard - setting body for governmental accounting and financial reporting. Pronouncements of the Financial Accounting Standards Board (FASB) issued after November 30, 1999 are not applied in the preparation of the financial statements in accordance with GASB Statement No. 20. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting standards which, along with subsequent GASB pronouncements (Statements and Interpretations) constitute GAAP for governmental units. The more significant of these accounting policies are described below. The League's funds are accounted for and are considered to be enterprise funds for financial reporting purposes with revenues recognized when earned and expenses when incurred. The League adopted the provisions of Government Accounting Standards Board Statement No. 34, "Basic Financial Statements — and Management's Discussion Analysis — for State and Local Governments" (GASB 34), in fiscal year 2004, effective July 1, 2003. Accordingly, the fiscal year 2003 financial statements have been restated to conform to GASB 34. GASB 34 establishes financial reporting standards for all state and local governments and related entities. For the League, GASB 34 primarily relates to presentation and disclosure requirements and had no impact on fund equity. The impact primarily related to balance sheet presentation of assets and liabilities classified between current and noncurrent and statement of activity presentation of operating and nonoperating revenues and expenses. In addition, the current year financial statements include management's discussion and analysis as required by GASB 34. Basis of Accounting The financial statements of the League have been prepared on the accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Property and Equipment Property and equipment are recorded at cost. Major betterments and renewals are capitalized while repairs and maintenance are expensed. Upon retirement or disposal of property and equipment, the cost of the assets and related accumulated depreciation are removed from the accounts and any gain or loss is included in income. Depreciation is calculated using the straight -line method with a useful life of 3 -5 years. Income Taxes The League's income is non - taxable under Section 115 of the Internal Revenue Code. -5- NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accrued Annual Leave The League's obligation for employees' rights to receive compensation for the future absences of annual leave is recognized as a liability when earned and is based upon an established monthly accrual at the employee's hourly rate of pay. The accrual is adjusted when an employee either uses leave or requests a payment of cash in lieu of actual leave taken. Membership Dues Membership dues are recognized on a cash basis. Cash and Cash Equivalents For financial statement purposes, the League considers all cash, checking accounts, money market funds and certificates of deposit with maturities of less than three months to be cash and cash equivalents. Short-term Investments Including Certificates of Deposit For financial statement purposes, the League considers investments in the AMLIP Investment Pool and certificates of deposit with maturities of ninety days or more to be short-term investments. The carrying value of the AMLIP investment and investments in certificates of deposit approximates fair value. NOTE 2— INVESTMENTS ALASKA MUNICIPAL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS A summary of the League's investments is displayed below by type of instrument. The League's investments in the external investment pool, as described below, are not categorized. The remaining investments fall under GASB's Category 1 (the category of least risk) which includes investments that are insured or registered or for which the securities are held by the League or its agent in the League's name. The Alaska Municipal League Investment Pool (AMLIP) is considered to be an external investment pool. Regulatory oversight of AMLIP is established by Alaska State Statute 37.23, which sets forth the requirements regarding authorized investments and reporting. The League's share of the fair value in AMLIP is determined by the fair value per share of AMLIP's underlying portfolio. As of June 30, 2004, the fair value of League's position in the pool approximates the value of League's pool shares. At June 30, the fair value of investments are as follows: Certificates of deposit External investment pool (AMLIP) 2004 $ 45,705 1 005 549 1.05 2003 996,642 S 996.642 All investments are held in the League's name by a custodial bank that is the agent of the League. -6- NOTE 3- PROPERTY AND EQUIPMENT Equipment Less accumulated depreciation NOTE 4- RETIREMENT PLAN ALASKA MUNICIPAL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS The following is a summary of equipment at June 30: Depreciation expense was $3,228 and $5,095 for the years ended June 30, 2004 and 2003, respectively. Plan Description The League participates in the Alaska Public Employees Retirement System (PERS). The Plan is a defined benefit, agent multiple employer public employee retirement system established and administered by the State of Alaska to provide pension and post - employment healthcare benefits for eligible State and local government employees. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. PERS issues a publicly available stand- alone financial report, the PERS /TRS CAFR, which includes financial statements and required supplementary information for PERS. That report may be obtained by writing the Department of Administration, Division of Retirement and Benefits, P.O. Box 110203, Juneau, Alaska 99811-0203 or by calling (907) 465 -4460. Funding Policy All members employed by the League are required to contribute 6.75% as required by statute. PERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are sufficient to accumulate sufficient assets to pay both pension and postemployment healthcare benefits when due. Employer contribution rates are level percentages of payroll and is determined using the projected unit credit actuarial funding method. The League's current rate is 30.49% of annual covered payroll. Annual Pension cost For the year ended June 30, 2004 and 2003, the League's annual pension cost and contributions made were $82,181 and $95,485 respectively. The amortization method used in the actuarial valuation is the level dollar method. The amortization period is an open, rolling 25 -year period. The actuarial assumptions included: (a) Investment Return - 8.25% per year, compounded annually, net of expenses; (b) Salary scale - increase of 5.5% for the first ten years of employment and 4% per year thereafter; (c) Inflation — total inflation as measured by the Consumer Price Index for urban and clerical workers for Anchorage, assumed to increase 3.5% annually; (d) Contribution refunds - 100% of those employees terminating after age thirty-five with five or more years of service will leave their contributions in the fund and thereby retain their deferred vested benefit. All others who terminate are assumed to have their contributions refunded; and (e) Asset valuation — recognized 20% of the investment gain or loss in each of the current and preceding four years. All assets are valued at market value. Valuation assets cannot be outside a range of 80% to 120% of the fair value of assets. -7- 2004 2003 $ 31,925 $ 31,925 (30,601) (27,373) $ 1,324 ;z 4.552 NOTE 4- RETIREMENT PLAN (Continued) Three -Year Trend Information * Beginning biannually. Period Ending 6/30/02 6/30/03 6/30/04 Required Supplementary Information Actuarial Actuarial Value of Valuation Assets Date (a) Pension Benefit * 6/30/01 510,000 6/30/02 431,000 6/30/03 453,000 ALASKA MUNICIPAL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS Annual Pension Cost (APC) $94,896 95,485 82,181 Post employment Health Care Benefits * 6/30/01 217,000 410,000 6/30/02 262,000 653,000 6/30/03 303,000 790,000 in 2000, the State of Alaska NOTE 5- RELATED PARTY TRANSACTIONS Percentage of APC Contributed -8- 100% 100 100 Net Pension Obligation $ -0- - 0- - 0- Schedule of Funding Progress for the League Actuarial Accrued Unfunded Annual Liability Funded AAL Covered (AAL) Ratio (UAAL) Payroll (b) (a/b) (b -a) (c) 964,000 53 454,000 249,000 1,075,000 40 644,000 284,000 1,182,000 38 729,000 252,000 53 193,000 249,000 40 391,000 284,000 38 487,000 252,000 UALL as a Percentage of Covered Payroll (b -a) /c) 182% 227 289 78% 138 193 PERS elected to prepare Actuarial Valuation Reports The League formed the AML -JIA to provide League member municipalities and school districts an opportunity to participate in a risk management pool for property and casualty liability coverage Since July 1988, AML -JIA has been a separate legal entity. The League receives an institutional fee from AML -JIA in consideration for the League's support in helping to organize the AML -JIA and continued use of the League's name. This fee was $100,000 and $100,000 for the periods ended June 30, 2004 and 2003 respectively, and is equivalent to 1% of AML - JIA's annual core package premium deposits. The Executive Director of the League sits on the Board of Trustees of AML -JIA. The League provides certain administrative support to AML -JIA for a fee, equal to the League's cost of $4,555 and $6,400 for the years ending June 30, 2004 and 2003 respectively. NOTE 5- RELATED PARTY TRANSACTIONS (Continued) In addition, the League provides office space, administrative and other reimbursable charges to AML -JIA for a fee, equal to the League's cost. Expenses paid by AML and reimbursed by AML -JIA, and therefore excluded from the accompanying financial statements, for the years ended June 30, 2004 and 2003 were: Support and Revenues - Reimbursables ALASKA MUNICIPAL LEAGUE, INC. NOTES TO FINANCIAL STATEMENTS 2004 2003 $ 196.533 $ _1_9__5.747 Net reimbursable expenses Employee benefits 169,916 169,005 Office rent 20,781 19.836 Telephone and utilities - 1,962 Postage 464 555 Purchased services 1,526 - Equipment rental 3,381 2,305 Parking 409 1,849 Miscellaneous 56 235 $ 196.53 $_ 195.74"7 NOTE 6- ADVANCE TO ALASKA MUNICIPAL LEAGUE INVESTMENT POOL The League has formed the Alaska Municipal League Investment Pool (AMLIP), available to all municipalities and school districts in the State of Alaska, which is intended to serve as a short -term investment option for all participants. AMLIP's board of directors consists of four members appointed by the League's board of directors, and three members elected by the AMLIP board of directors. The League receives a fee, based on a percent of invested balances, from AMLIP to reimburse the League for use of its name, logo, goodwill, its initial investment in AMLIP, administrative support and other consulting services. Based on AMLIP pool holdings during the years ended June 30, 2004 and 2003, the League was paid $141,381 and $102,509, respectively, by AMLIP under the payment guidelines set forth in the agreement between the League and AMLIP. NOTE 7— DEPOSITORY INSURANCE EXPOSURE The Federal Deposit Insurance Corporation insures deposits for any single depositor up to $100,000 per financial institution. At June 30, 2004 the Company had total cash balances in financial institutions of $273,093. Of this amount, $173,093 is not covered by federal deposit insurance. -9- ASSEMBLY WORK SESSION January 13, 2005 - 7:30 p.m. Borough Conference Room 1 AGENDA 1 CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION 1. Update on Landfill Status 2. Strategic Plan 3. Joint Work Session PACKET REVIEW INTERIM MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS ON LEAVE Branson - January 10- February 1 Wells - January 24 -28 Anderson - January 25 -31 Williams - February 2 -14 ASSEMBLY CALENDAR January 2005 17- CLOSED Borough Offices Closed in Observance of Martin Luther King Day 5:15 pm School Board Budget Work Session - SD /CR 18- 7:30 pm Assembly /City Council Joint Work Session - CR (Kodiak Airport Systems Plan - Fisheries Issues - Joint Legislative Reception - Joint Washington D.C. Lobby Trip - Annexation) 19- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 20- 7:30 pm Assembly Regular Meeting - AC 24 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Regular Meeting - AC 25- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 26- 7:30 pm Planning and Zoning Commission Special Work Session - CR 25 -26 AML Juneau CM td&C LW' 7:30 pm Assembly Work Session - CR - (Kodiak College Powerpoint Presentation - Legal Review) CANCELED City Council Regular Meeting — � p, 27 -29 SWAMC Anchorage 30 5:15 pm School Board Budget Work Session - SD /CR t)oic February 2005 d di- 7:30 pm Assembly Regular Meeting - AC 7- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Work Session - SD /CR 8- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 9- Travel Joint Legislative Reception - Juneau 9- 7:30 pm Planning and Zoning Commission Work Session - CR 10- 7:30 pm Assembly Work Session - CR (Personal Property Tax - Investment Policy (Mary Lou Pratt) - Facilities Fund) CANCELED City Council Regular Meeting 16- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 17- 7:30 pm Assembly Regular Meeting - AC 21- CLOSED Borough Offices Closed in Observance of Presidents' Day 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Regular Meeting - AC 22- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR �} 24- 7:30 pm Assembly Work Session - CR (Fee Schedule) p v e e +A Cat/440 tt, 7:30 pm City Council Regular Meeting - AC 28- 5:15 pm School Board Budget Work Session - SD /CR March 2005 3- 1:30 pm Local Emergency Planning Committee - AC 7:30 pm Assembly Regular Meeting - AC 7- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Work Session - SD /CR 8- 7:00 pm Parks and Recreation Committee Meeting - CR CANCELED City Council Work Session 9- 7:30 pm Planning and Zoning Commission Work Session - CR 11 -15 Travel Washington D.C. Lobby Trip 10- 7:30 pm Assembly Work Session - CR CANCELED City Council Regular Meeting 16- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 17- 7:30 pm Assembly Regular Meeting - AC 21- 5:15 pm School Board Budget Work Session - SD /CR 22- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR 24- 7:30 pm City Council Regular Meeting - AC KODIAK ISLAND BOROUGH WORK SESSION MEETING 1 Work Session Meeting of: 1 t z 1 a.: Li 10 2065 please print your name W 1. ^ 4$ 2. J I w tA./ 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.