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2007-11-15 Regular MeetingKodiak Island Borough Assembly Regular Meeting Agenda Thursday, November 15, 2007, 7:30 p.m., Assembly Chambers 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed with an asterisk ( *) are considered to be routine and non - controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 5. APPROVAL OF MINUTES — None 6. AWARDS AND PRESENTATIONS A. Student of the Month — November 2007 CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments 8. COMMITTEE REPORTS 9. PUBLIC HEARING 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS A. Ordinance No. FY2008 -09 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.17 Rules of the Assembly, Section 2.17.020 General Rules to Allow Attendance and Participation at Meetings by Members of the Assembly by Teleconference. B. Ordinance No. FY2008 -08 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.04 Public Finance - Management and Accounting Section 3.04.020 Permissible Investments Section 3.04.022 Collateral Requirements Section 3.04.051 Facilities Fund by Changing the Types of Instruments the Borough Can Invest in Changing the Investments Allowed in the Facilities Fund, and Changing Disbursements from the Facilities Fund from a Percent of Interest Earned to a Percent of Market Value (POMV.) Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 12. Citizens' Comments L and Public Hearing Numbers: Toll Free (800) 478 -5736 and Local 486 -3231. Page 1 of 2 ■ 13. NEW BUSINESS A. Contracts B. Resolutions C. Ordinances for Introduction 1. Ordinance No. FY2008 -11 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel Chapter 2.16 Borough Assembly Section 2.16.060 Declaring and Filling Vacancies, and Chapter 2.17 Rules of the Assembly Section 2.17.070C Ordinances, Resolutions, and Motions. D. Other Items — None. 14. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 15. ASSEMBLY MEMBERS' COMMENTS 16. ADJOURNMENT 17. INFORMATIONAL MATERIALS (No Action Required) A. Minutes of Other Meetings 1. Monashka Bay Road Service Area Regular Meeting — August 9, 2007 2. Planning and Zoning Commission — September 19, 2007 B. Reports Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 12. Citizens' Comments and Public Hearing Numbers: Toll Free (800) 478 -5736 and Local 486 -3231. Page 2 of 2 Kodiak Island Borough Assembly Regular Meeting Guidelines November 15, 2007, 7:30 p.m., Assembly Chambers 1. INVOCATION Captain John Quinn of the Salvation Army. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Recommended motion: Move to specifically excuse any Assembly members that are absent. KIBC 2.16.070.... the Chair shall cause the record to reflect the absence of the member, the REASON for the absence, and whether the absence is excused by the Assembly. VOICE VOTE ON MOTION 4. APPROVAL OF AGENDA Recommended motion: Move to approve the agenda. VOICE VOTE ON MOTION TO APPROVE THE AGENDA. 5. APPROVAL OF MINUTES — None. 6. AWARDS AND PRESENTATIONS A. Student of the Month for November 2007— Mayor Selby 7. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) A. Agenda Items not scheduled for public hearing and general comments. Read phone numbers: Local is 486 -3231 and Toll Free is 1- 800 - 478 -5736. Please ask speakers to sign in and state their name for the record. 8. COMMITTEE REPORTS 9. PUBLIC HEARING — None. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR Kodiak Island Borough Assembly Guidelines November 15, 2007 Page 1 12. UNFINISHED BUSINESS A. Ordinance No. FY2008 -09 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.17 Rules of the Assembly, Section 2.17.020 General Rules to Allow Attendance and Participation at Meetings by Members of the Assembly by Teleconference. Recommended motion: Move to adopt Ordinance No. FY2008 -09 in first reading to advance to public hearing on December 6, 2007. Staff Report — Manager Gifford Assembly discussion and amendments may be offered at this time. ROLL CALL VOTE ON MOTION. B. Ordinance No. FY2008 -08 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.04 Public Finance - Management and Accounting Section 3.04.020 Permissible Investments Section 3.04.022 Collateral Requirements Section 3.04.051 Facilities Fund by Changing the Types of Instruments the Borough Can Invest in Changing the Investments Allowed in the Facilities Fund, and Changing Disbursements from the Facilities Fund from a Percent of Interest Earned to a Percent of Market Value (POMV.) Motion to adopt Ordinance No. FY2008 -08 is on the floor — meeting October 4, 2007. Staff Report — Manager Gifford Assembly discussion and amendments may be offered at this time. (Clerk's Note: Optional amendment to Section E is attached on ROLL CALL VOTE ON MOTION. 13. NEW BUSINESS A. CONTRACTS — None. B. RESOLUTIONS — None. C. ORDINANCES FOR INTRODUCTION .) 1. Ordinance No. FY2008 -11 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.16 Borough Assembly, Section 2.16.060 Declaring and Filling Vacancies, and Chapter 2.17 Rules of the Assembly, Section 2.17.070 C Ordinances, Resolutions, and Motions. Kodiak Island Borough Assembly Guidelines November 15, 2007 Page 2 Recommended motion: Move to adopt Ordinance No. FY2008 -11 in first reading to advance to public hearing on December 6, 2007. Staff Report — Manager Gifford Assembly discussion and amendments may be offered at this time. ROLL CALL VOTE ON MOTION. D. OTHER ITEMS — None. 14. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) Read phone numbers: Local is 486 -3231 and Toll Free is 1- 800 - 478 -5736. Please ask speakers to sign in and state their name for the record. 15. ASSEMBLY MEMBER COMMENTS Announcements — Mayor Selby. A Special Meeting of the Assembly is scheduled on Tuesday, November 20, 2007 at 7:30 p.m. in the Borough Assembly Chambers. The next Assembly work session will be held Thursday, November 29, 2007 at 7:30 p.m. in the Borough Conference Room and the Regular Assembly Meeting will be on Thursday, December 6, 2007 at 7:30 p.m. in the Borough Assembly Chambers. Borough offices will be closed Thursday, November 22 and Friday, November 23, 2007 in observation of the Thanksgiving Holiday. 16. ADJOURNMENT Recommended motion: Move to adjourn the meeting. ROLL CALL VOTE ON MOTION Kodiak Island Borough Assembly Guidelines November 15, 2007 Page 3 BY: SECOND: �! 7 f' iki , n BY: 1 f) SECOND: - o �, ,„,,,, ,,,,), � BY: ,5j j j SECOND: 10 r 0cep F - 6 1 1 I BY: s f SECOND: LS 4' BY: ` ��"""" SECOND: As0 E-67 Yes / No Mr. Abell Yes r No Mr. Abell Yes No Mr. Abell Yes / No Mr. Abell Yes No Mr. Abell ' Ms. Branson / Ms. Branson Ms. Branson Ms. Branson.,'- / Ms. Branson Mr. Friend / Mr. Friend Mr. Friend Mr. Friend / Mr. Friend* Ms. Jeffrey / Ms. Jeffrey ..' Ms. Jeffrey Ms. Jeffrey ✓ Ms. Jeffrey Ms. Lynch / Ms. Lynch Ms. Lynch Ms. Lynch / Ms. Lynch Mr. Oswalt / Mr. Oswalt Mr. Oswalt Mr. Oswalt / Mr. Oswalt Ms. Stutes / Ms. Stutes Ms. Stutes Ms. Stutes / Ms. Stutes DOES ANYONE WISH TO CHANGE THEIR VOTE ? --- TOTAL TOTAL TOTAL TOTAL TOTAL Inc In case of a tie In case of a tie In case of a tie In case of a tie Mayor Selby / Mayor Selby Mayor Selby Mayor Selby 7 O Mayor Selby Regular !/ Special Convened: i t 0 CI /assembly /roll call sheet �kd C62+r dd L dEi ✓II �Gi -c4 Lc?- KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Date: /feat y- 4i' / ✓, C)' ' Adjourned: 0 N fD 0 su 0 N a 0 0 • of 0 0 3 m 0 rP 0 r -i 0 3 3 3 3 3 3 3 ao I t mimeo c to 7 O d 7 O d fD f 3 3 3 3 3 3 r m ,* S .G Q' 0 i 3 3 1 ID ID 0. ID 0- W V1 0 d H 0 3 S m rD 3333 a- m ID z 0 Z r 0 z D N CO M . A O v n LA W 0 q tz- vs 'xi 0 z ID Oq c D CU 0 C)9 Mayor Selby 1 In case of a tie TOTAL Mr. Abell Ms. Branson Mr. Friend Ms. Jeffrey Ms. Lynch Mr. Osway Ms. Stute of W m .< A •• 0 Z '1) \ IMMIMPAIN Yes co o Ms. Stutes Mr. Oswalt 11111 Ms. Lynch Ms. Jeffrey Mr. Friend Ms. Branson Mr. Abell No Mayor Selby In case of a tie 1 TOTAL v co m ..< A •• 0 Z v IES A Yes 1 No Mayor Selby In case of a tie 1 TOTAL Ms. Stutes Mr. Oswalt Ms. Lynch Ms. Jeffrey Mr. Friend Ms. Branson Mr. Abell v+ co m A •• 0 Z P HAN Yes No Mayor Selby In case of a tie TOTAL Ms. Stutes Mr. Oswalt Ms. Lynch Ms. Jeffrey Mr. Friend Ms. Branson Mr. Abell N W A • 0 Z v Yes No 1 Mayor Selby In case of a tie TOTAL I Ms. Stutes Mr. Oswalt 1 Ms. Lynch Ms. Jeffrey Mr. Friend Ms. Branson Mr. Abell v+ W m _< A •• 0 Z P Yes No Cl 0 (D 0 KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Regular Meeting of : D @f[mt Please j rintJ your name KODIAK ISLAND BOROUGH ASSEMBLY MEETING Please (,• your name WHEREAS, currently there is no provision in the Borough Code for assembly members to participate in assembly meetings by teleconference; and WHEREAS, Alaska Statutes 44.62.310 provides that attendance and participation at meetings by members of the governmental body may be by teleconferencing; and NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Title 2 Administration and Personnel Chapter 2.17 Rules of the Assembly Section 2.17.020 General Rules is hereby amended as follows: 2.17.020 General rules. A. Public meetings: All official meetings of the assembly shall be open to the public. The journal of proceedings shall be open to public inspection. B. Quorum: Four (4) members of the assembly shall constitute a quorum. be- followed. KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2008 -09 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 2 ADMINISTRATION AND PERSONNEL CHAPTER 2.17 RULES OF THEASSEMBL SECTION 2.17.020 GENERAL RULES TO PROVIDE FOR TELECONFERENCING DURING ASSEMBLY MEETINGS Introduced by: Assembly member Oswalt Requested by: Assembly member Oswalt Drafted by: Borough Clerk Introduced: 10/08/2007 Postponed: 11/15/2007 Public Hearing: 12/06/2007 Adopted: C. Absences: No member of the assembly may absent himself from any regular or special meeting of the assembly except for good cause. An assembly member who is unable to attend a meeting shall advise the clerk or the mayor of the contemplated absence and the reason for that absence. During the course of the meeting from which the member is absent, the chair shall cause the record to reflect the absence of the member and whether the absence is excused by the assembly. D. Teleconferencing: Attendance and participation of members of the assembly at assembly meetings may be by teleconference. 1. Telephonic participation by assembly members is authorized during assembly meetings when an assembly member is physically absent from Kodiak or is physically incapacitated. Kodiak Island Borough, Alaska Ordinance No. FY2008 -09 Page 1 of 2 2. The assembly member shall inform the assembly of his or her wish to participate by teleconference at a meeting or twenty four (24) hour notice shall be given to the clerk prior to the teleconference. 3. An assembly member participating by teleconference shall only be allowed if the meeting is held with a quorum of members physically present. 4. An assembly member participating by teleconference shall be deemed to be present at the assembly meeting and shall have the same right to participate in discussion and to vote on any matter as if physically present at the assembly meeting. The vote shall be conducted in such a manner that the public may know the vote of each person entitled to vote. All votes shall be taken by roll call vote. 5. An assembly member participating by teleconference shall not be charged for any telephone costs associated with the teleconference participation. 6. Participation from outside of Alaska is permitted. 7. If there is an unexpected severance of connection, a brief recess may be called to reestablish connection. If such efforts are unsuccessful, the action of the Assembly shall not be invalidated on which the teleconferenced member could have voted. 8. Reasonable efforts shall be made to ensure agenda packets and other materials are available to the members or at the teleconference location. Publication on the website prior to the day of the meetings may substitute for hard copies. E. Rules of order: "Roberts Rules of Order Current Edition" shall govern the proceedings of the assembly in all cases, unless they are in conflict with these rules. When such a conflict exists, this ordinance prevails. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2007 ATTEST: Jerome M. Selby, Borough Mayor Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Kodiak Island Borough, Alaska Ordinance No. FY2008 - 09 Page 2 of 2 KODIAK ISLAND BOROUGH AGENDA STATEMENT NOVEMBER 15, 2007 REGULAR MEETING TITLE: Ordinance No. FY2008 -08 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.04 Public Finance - Management and Accounting Section 3.04.020 Permissible Investments Section 3.04.022 Collateral Requirements Section 3.04.051 Facilities Fund by Changing the Types of Instruments the Borough Can Invest in Changing the Investments Allowed in the Facilities Fund, and Changing Disbursements from the Facilities Fund from a Percent of Interest Earned to a Percent of Market Value (POMV.) SUMMARY: This ordinance allows the cash and investments of the Facilities Fund to be managed and invested by an external money manager. This ordinance also allows these funds to be invested in more instruments than currently allowed. Generally, over a longer period of time, the return on investments is higher when they are invested in higher risk instruments. This ordinance would let the Borough maximize interest earnings on funds held by the Facilities Fund. This ordinance would also distribute the interest earning of the Facilities Fund based on a five - year average instead of caculating the amount to be distributed on an annual basis. This Ordinance also includes some housekeeping changes to bring this code section up to date with current practice. FISCAL NOTES: Account No.: Amount Budgeted: Expenditure Required: APPROVAL FOR AGENDA: 4 RECOMMENDED MOTION: Move to a ITEM NO. 12.8' Liset the el)ocsAilsk4, Inc. 907 248 8472 eDo KCrdcsdldskd -net Surf your files... hke you sur(the Internet o2©a —0 F Vo/e' /1/4/07 Alle'LL // 5/0 KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2008 -08 Introduced by Manager Gifford Requested by Borough Assembly Drafted by: Finance Director Introduced: 09/20/2007 Public hearing: 10/04/2007 Postponed: 11/15/2007 Adopted AN ORDINANCE OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE CHAPTER 3.04 PUBLIC FINANCE — MANAGEMENT AND ACCOUNTING SECTION 3.04.020 PERMISSIBLE INVESTMENTS SECTION 3.04.022 COLLATERAL REQUIREMENTS SECTION 3.04.051 FACILITIES FUND BY CHANGING THE TYPES OF INSTRUMENTS THE BOROUGH CAN INVEST IN CHANGING THE INVESTMENTS ALLOWED IN THE FACILITIES FUND, AND CHANGING DISBURSEMENTS FROM THE FACILITIES FUND FROM A PERCENT OF INTEREST EARNED TO A PERCENT OF MARKET VALUE (POMV) WHEREAS, the Borough Code pertaining to investments has become dated; and WHEREAS, the list of allowed investments could be more clearly defined; and WHEREAS, collateral is not available on all investment types, only repurchase agreements and certificates of deposit; and WHEREAS, because the principal amount of the investments held in the facilities fund is not used for daily operations, investments can be held for a longer term and can have larger swings in value; and WHEREAS, generally, over a long period of time equities (stocks) show a greater return than government securities; and WHEREAS, because of GASB 31, the value of the Borough investments change on our general ledger even though it will not change over the life of an investment; and WHEREAS, because of these changes in value, both up and down, it is better to use a percent of market value method to distribute earning of the fund than a percent of previous years' earnings; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Title 3 Revenue and Finance Chapter 3.04 Public Finance — Management and Accounting Section 3.04.020 Permissible Investments is hereby amended as follows: Chapter 3.04 PUBLIC FINANCE — MANAGEMENT AND ACCOUNTING Sections: 3.04.010 General treasury management. 3.04.015 Authority. 3.04.020 Permissible investments. 3.04.021 Terms defined. 3.04.023 Collateral safekeeping. 3.04.026 Diversification of investments. 3.04.027 Investment records. Kodiak Island Borough, Alaska Ordinance No. FY2008 -08 Page 1 of 5 3.04.030 Deposit of school money. 3.04.040 Basis of accounting. 3.04.050 Funds. 3.04.051 Facilities fund. 3.04.052 Education fund. 3.04.053 Fern Fuller fund. 3.04.056 Land sale fund. 3.04.056 Penalties. 3.04.057 General fixed assets. 3.04.060 Distribution of funds. 3.04.065 Review of service fees. 3.04.070 Post audit. 3.04.020 Permissible investments. The treasurer finance director shall invest money only in the following types of security instruments: A. Bonds, notes, or other obligations, direct or otherwise, of the United States Government; B. Bonds and other evidence of indebtedness of the state of Alaska, or any municipality, or political subdivision of the state of Alaska; C. Savings accounts, certificates of deposit, banker's acceptances, repurchase agreements, and such other legal security instruments; or D. The Alaska Municipal League Investment Pool, Inc. made in accordance with the terms of that Pool's "Common Investment Agreement ". Section 3: Title 3 Revenue and Finance Chapter 3.04 Public Finance — Management and Accounting Section 3.04.022 Collateral requirements is hereby deleted as follows: insured. Collateral will be required to thc extent that thc investment amount cxeced3 the Iimit3 A. State and municipal Required for bond3 and notc3: 100% of Dcpo3it 2. Federally guaranteed i33UC3 100% of markct 3. Other 3tatcs (Boa rating or bcttcr) 120% of markct 1. Direct obligations 100% of markct 2. federal agency i33UCS 100% of markct 3. Fcdcrally guarantee 100% of market project notes other 100% of markct (Ord. 82 15 O(A) (part), 1982). Section 4: Title 3 Revenue and Finance Chapter 3.04 Public Finance — Management and Accounting Section 3.04.051 Facilities Fund is hereby amended as follows: 3.04.051 Facilities Fund. A. The facilities fund is established as a separate special revenue fund which is distinct from all other funds. The fund consists of all proceeds received from the sale of Shuyak Island property to the Exxon Valdez Oil Spill Trustee Council. All income from the fund shall be deposited to the fund. The assembly may, by ordinance, make additional appropriations to the fund at any time. Any additional funds added to the fund, aside of Shuyak Island proceeds, shall become part of the fund as a whole and subject to the Kodiak Island Borough, Alaska Ordinance No. FY2008 -08 Page 2 of 5 regulations of the facilities fund. B. : : a .: The invektment purpose of the facilities fund is growth through prudent investment of fund assets. Notwithstanding the objectives of the borough policy for the investment of its operating and other funds set out in 3.04.020, the investment of the facilities fund assets shall be made to maintain safety of principal while maximizing total return. Investments shall be diversified to minimize the risk of loss resulting from a concentration of investments in a specific maturity, issuer, class of security, financial institution or, with respect to equity investments, in a specific company, industry or investment sector. Fund assets may only be invested in the instruments and securities set out in the following: 1, United States Treasury obligations including bills, notes, bonds, and other debt obligations issued by the United States Treasury, and backed by the full faith and credit of the U.S. Government. 2. Securities issued or guaranteed by agencies and instrumentalities of the U.S. Government, but not explicitly backed by the full faith and credit of the U.S. Government. 3. Securities issued or guaranteed by municipalities in the United States, rated in one of the three highest rating categories by nationally recognized statistical rating organization (NRSRO). 4. Corporate debt securities rated investment grade. 5. Asset - Backed securities rated investment grade. 6. Yankee debt (that is, U.S. dollar denominated obligations issued in the U.S. capital markets by foreign issuers) rated investment grade. 7. Mortgage- Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO) comprising. a) Agency MBS investments issued by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, or the Government National Mortgage Association. b) CMO investments securitized by agency MBS issued by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, or the Governmental National Mortgage Association; provided that permissible CMO investments include only sequential class CMO's or tvpe I planned amortization class CMO's. 8. Money market mutual funds regulated by the Securities and Exchange Commission which comply with rule 2(a)7 and whose underlying portfolio consists of investment grade securities; and the Alaska Municipal League Investment Pool, Inc. 9. A mutual fund, which is designed to replicate the Standard and Poor's 500 Index or an ETF (Exchange Traded Funds) with the same purpose. C. Allocation of investments. The borough may have all or part of the Facilities Fund investments managed by an external money manager. 1. By external money managers. Allowable Minimum Percentage Percentage Requirements of Issuer of portfolio UST 100% 0 - 100% Agencies 100% 0 - 100% Bonds BBB 10% 0 - 25% BA's A 2% 0 - 25% Repo's A 5% 0 - 25% CD's A 5% 0 - 10% Mutual Funds 10 - 25% AMLIP 0 - 50% Kodiak Island Borough, Alaska Ordinance No. FY2008 -08 Page 3 of 5 CD's over $ 100,000 must be collateralized at 102% Mutual Funds must meet all of the above requirements. 2. By finance director or designee: The finance director or designee can invest in any of the above except for mutual funds. D. The following are prohibited transactions: 1. Purchase of non - dollar securities. 2. Purchase of private placement securities. 3. Short sale of securities (the sale and settlement of a security not currently owned and a formal agreement to borrow the security to facilitate the settlement of the short sale) 4. Purchases of futures, forwards or options. 5. Borrowing to leverage the return on investments. Extended settlement of securities purchases executed to facilitate or improve the efficiency of a transaction will not be considered borrowing, provided that sufficient cash equivalent securities or receivables are available to facilitate the extended settlement. In the event a security currently held in the portfolio is downgraded below investment grade the money manager shall provide written notification to the Finance Director and set forth in writing a recommended course of action. The fund may not be appropriated or spent, except as provided in this section. The earnings or pr-ifieiple principal shall at no time run or supplement the running of government except as specified in this section. (Kodiak Fishcrics Research Ccntcr) as an addition to thc Fishcry Industrial Technology Ccntcr complcx on Near Island. by thc assembly in thc fi3cal year following thc year in which thc incomc is earned. The cxccss E. Four percent of the average market value (POMV) as of Dec. 31 of the preceding five Years may be appropriated for the following purposes: 1. maintenance and repair of existing borough facilities, 2. insurance paid by the borough for borough buildings, 3. upgrade and reconstruction of existing facilities, or 4. debt service on general obligation bonds issued for facilities construction - -up to fifty (50) percent of excess may be used for this purpose. F. A portion of the fund may be appropriated for another purpose only upon approval of an ordinance ratified by a two - thirds (2/3) majority of the qualified voters at a regular or special election. G. Selection of money managers. The Finance Director may prepare an RFP to solicit proposals from different money managers to manage a portion or all of the investments of the Facilities Fund. After the proposals are evaluated a recommendation will be made to the Assembly through the Borough Manager. H. Money managers must meet the following minimum criteria: 1. Be a bank, insurance company, investment management company, or investment adviser as defined by the Registered Investment Advisers Act of 1940. 2. Provide historical quarterly performance numbers calculated on a time - weighted basis, based on a composite of all fully discretionary accounts of similar investments style, and reported net and gross of fees. Kodiak Island Borough, Alaska Ordinance No. FY2008 -08 Page 4 of 5 3. Provide detailed information on the history of the firm, key personnel, key clients, fee schedule, and support personnel. This information can be a copy of a recent Request for Proposal (RFP) completed by the money manager. 4. Clearly articulate the investment strategy that will be followed and document that the strategy has been successfully adhered to over time. Selected firms shall have no outstanding legal judgments or past judgments, which may reflect negatively upon the firm. I. Duties and responsibilities of the money manager. The duties and responsibilities of each money manager retained by the borough include the following: 1. Managing the borough assets under its care, custody and /or control in accordance with the objectives and guidelines set forth herein. 2. Exercising investment discretion (including holding cash equivalents as an alternative) within the objectives and guidelines set forth herein. 3. Promptly informing the borough through the finance director in writing regarding all significant and /or material matters and changes pertaining to the investment of Borough assets, including but not limited to: a. Investment strategy b. Portfolio structure c. Tactical approaches d. Ownership e. Organizational structure f. Financial condition g. Professional staff h. Recommendations for guideline changes i. All legal material, SEC and other regulatory agency proceedings affecting the firm 4. Promptly voting all proxies and related actions in a manner consistent with the long- term interests and objectives of the borough set forth herein. The money manager shall keep detailed records of said voting of proxies and related actions and will comply with all regulatory obligations related thereto. 5. Utilize the same care, skill, prudence and due diligence under the circumstances then prevailing that experience, investment professionals acting in a like capacity and fully familiar with such matters would use in like activities for like borough and Endowment Funds with like aims in accordance and compliance with all applicable laws, rules and regulations from local, state, federal and international political entities as it pertains to fiduciary duties and responsibilities. 6. Acknowledge and agree in writing to their fiduciary responsibility to fully comply with all of the objectives and guidelines set forth herein, and as modified in the future. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2007 KODIAK ISLAND BOROUGH ATTEST: Jerome M. Selby, Borough Mayor Nova M. Javier, CMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2008 -08 Page 5 of 5 Ordinance No. FY2008 -08 OPTIONAL AMENDMENT TO SECTION E: ED. The excess income of the fund is available for appropriation by the assembly. The excess income of the fund is defined as eighty -five (85) percent of the average of the previous five years mil— investment income f rom the r. nd Th_ f tw which the incomc is carncd. The excess income of the fund may be appropriated only for the following purposes: 1. maintenance and repair of existing borough facilities, 2. insurance paid by the borough for borough buildings, 3. upgrade and reconstruction of existing facilities, or 4. debt service on general obligation bonds issued for facilities construction - -up to fifty (50) percent of excess may be used for this purpose. Kodiak Island Borough TO: Honorable Mayor and Assembly Members of the Kodiak Island Borough THROUGH: Rick Gifford, Borough Manager /Q FROM: Karleton Short, Finance Director IN SUBJECT: Facilities Fund investments DATE: October 23, 2007 This is in response to the request made by Tom Abell on October 23, 2007 concerning the Facilities Fund. Here is a list of the requested information: MEMORANDUM How much in fund (actual money) How much loaned (to whom) Process for KIB borrowing from fund How much can we invest with AML What does AML invest in Example of what Finance Director would invest in differently (at this time) prior to hiring a money manager, if we do. Thoughts regarding amounts to be invested short term and long term At September 30, 2007 the Facilities Fund had $30,741,299 in cash and investments and $7,666,340 in interfund loans. The following table shows the details of these amounts. Cash and Investments $30,741,299 Due from Womens Bay 20,932 Due from Trinity Island Paving 172,851 Due from Hospital Fund 1,372,644 '1Tc Due From KFRC 6,099,913 71e z- a• $38,407, 639 We have set up interfund loans a couple of different ways. When the Borough purchased the KFRC revenue bonds it was authorized by Ordinance 97 -04. The loan for the Trinity Islands Paving District was authorized by Resolution FY2006 -08. The Hospital loan was set up as part of the FY2004 budget. The loan to the Womens Bay Fire Service Area for purchase of a new fire truck was authorized when Contract No. 2003 -40 was awarded. The ultimate authority is: Code section 3.04.020 Permissible investments. The treasurer shall invest money only in the following types of security instruments: ... B. Bonds and other evidence of indebtedness of the state of Alaska, or any municipality, or political subdivision of the state of Alaska; All of our funds are an integral part of the Kodiak Island Borough, a political subdivision of the State of Alaska. The Code allows the Borough to invest up to 1/3 of the total cash and investments of the Borough in the AMLIP (Alaska Municipal League Investment Pool). This would be approximately 28 million dollars. Code section 3.04.026 Diversification of investments. The treasurer will diversify investments of public funds of the borough within the following guidelines to minimize the risk of exposure: A. One (1) institution. No more than one -third (1/3) of the funds available for investment will be placed with a single bank or investment institution at the time funds are being invested. I would like to mention that I am currently on the Board of Directors of the Alaska Municipal League Investment Pool. I do not believe that this creates a conflict of interest but I want to provide this disclosure. At September 30, 2007 the AMLIP had a balance of $358,568,882. On this date the pool had an average maturity of 33 days. On October 29th the AMLIP had a balance of $407,333,043.98 At September 30, 2007 the Borough had $9,567,717 invested in the AMLIP. A large portion of this investment is the proceeds of the 2004A and 2004B bond issues. The following chart shows the investments of the investment pool at September 30, 2007. AMLIP at 9/30/2007 2 Al /P1 commercial paper 6% Unless we hire a financial advisor we really won't change what we are investing in if Ordinance 2008 -08 is adopted. At the current time we can invest in any of the proposed types except for mutual funds. To invest in rrm tu.a funds requires the services of a financial advisor. Long term vs. short term Generally, over time, long term investments give a better return than short term investments. You don't want to purchase all of your investments at the same time or have them mature at the same time. If you purchase all of your instruments at a low point in the market you will have a miserable 20 years. Conversely, buy when the market is ripe you will do great. There is one problem with long term investing, and that is in governmental accounting you must mark all of your investments to market every year. This means you must take the current market value of your investment, subtract what you have the investment valued at, and record the difference as a gain or a loss. Let's say you purchase a 20 year US Treasury at 5 %, which is also the coupon rate. If on the open market 5 years down the road you could buy this note to return 7% interest we would have to record a loss of $181,000, If we could sell it on the open market to return only 3% then we would record a gain of $234,000. If we hold this investment to maturity all of the intermediary gains and losses would cancel each other out and our investment would return exactly 5 %. We would have to record the gains and losses along the way. If we have to redeem an investment before it matures than the gain or Toss could become actual. Over time, long term investments will give you a higher rate of return. I hope that this answers your questions. If not please contact me and I will get you more information. 3 aJ C o a i L 1 m O E < O W v H cu LPL • N N A , V c L O W 0 0 0 0 0 l0 0 0 0 0 0 O 0 0 0 O 0 0 0 0 0 N 0 0 0 0 0 0 00 (.0 aim s!xv 0 0 0 0 0 0 0 0 0 N 0 0 N y LL LO 0 0 N LL 0 0 L LL 0 0 N } LL m 0 0 N LL N 0 0 N } LL 0 0 L 0 0 N LL 0i 01 G1 >- LL 00 01 } LL O O O O O CO O O O O N 0 O O -o m • .c — 7 O 0 "O 0 (6 c C c ca LL c o CO ° E r o U a) E - o a) c a 7 as LL (0 Q 0 N c CD 7 LL N +' O • c N Ua) a rn • � 2 c 7 o LL m a) t o _ , o ^ff v/ L 0) 0 O — Z LO 7 O LL m 4., a) c Q c O c v/ E 5 O LL Z APPROVAL FOR AGENDA: KODIAK ISLAND BOROUGH AGENDA STATEMENT NOVEMBER 15, 2007 REGULAR MEETING TITLE: Ordinance No. FY2008 -11 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.16 Borough Assembly, Section 2.16.060 Declaring and Filling Vacancies, and Chapter 2.17 Rules of the Assembly, Section 2.17.070 C Ordinances, Resolutions, and Motions SUMMARY: KIBC 2.16.060 describes the procedure for declaring vacancies on the Assembly including vacancies caused by members' absences from meetings. The code section involved was inartfully drafted in the form in which it was adopted and it includes conflicting interpretations. The Kodiak Island Borough wishes clarification and freedom from misinterpretation of the present code section. Through this ordinance change the Kodiak Island Borough would be assured that Assembly seats would be declared vacant appropriately. Amending Chapter 2.17.070 C of the code clarifies and amends this section to reflect the practices of the Assembly since 1990. The amendment of KIBC Code 2.16.060 A.4. is specifically intended to and shall release or extinguish any penalty, forfeiture, liability incurred by any assembly person for absences from assembly meetings during the period from May, 1990 until the date of its adoption in 2007 except to the extent they may have violated the ordinance as amended and clarified herein. ITEM NO: 13.0.1 RECOMMENDED MOTION: Move to adopt Ordinance No. FY2008 -11 in first reading to advance to public hearing on December 6, 2007. KODIAK ISLAND BOROUGH ORDINANCE NO. FY2008 -11 Introduced by: Borough Assembly Requested by: Borough Assembly Drafted by: Borough Attorney Introduced: November 15, 2007 Public Hearing: Adopted: AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 2 ADMINISTRATION AND PERSONNEL CHAPTER 2.16 BOROUGH ASSEMBLY SECTION 2.16.060 DECLARING AND FILLING VACANCIES, AND CHAPTER 2.17 RULES OF THE ASSEMBLY SECTION 2.17.070C ORDINANCES, RESOLUTIONS, AND MOTIONS. WHEREAS, KIBC 2.16.060 A. 4. presently reads as follows: The Assembly shall declare an assembly member's seat vacant when the assembly member misses more than four (4) unexcused consecutive regularly scheduled assembly meetings, or misses one - half (1/2) of all regular assembly meetings of the assembly in a six (6) month period, and WHEREAS, this section of the borough code was last amended in May, 1990; and WHEREAS, since 1990 the Assembly has not used this code section to declare any assembly member's seat to be vacant; and WHEREAS, it has been brought to the attention of the Assembly that this section could be read to require the Assembly to declare an assembly member's seat to be vacant, regardless of whether or not absences were excused by the Assembly, and whether or not the assembly member missed regularly scheduled, but canceled meetings; and WHEREAS, it is in the best interests of the Kodiak Island Borough to clarify and amend this section to reflect the practices of the Assembly since 1990; and WHEREAS, according to KIBC 1.01.110 A. the Assembly may expressly provide that the amendment to KIBC 2.16.060 A. 4. extinguishes any penalty, forfeiture, liability incurred, or right accruing under KIBC 2.16.060 A.4, as it read before this amendment; and WHEREAS, it is in the best interests of the Kodiak Island Borough to make the amendment to KIBC 2.16.060 A.4. retroactive to when it was last amended in May, 1990; and WHEREAS, According to KIBC 1.01.110 A, the assembly has the right to make amendments of any ordinance retroactive, but KIBC 2.17.070 C could be read to restrict the retroactive affect of amendments; and WHEREAS, it is in the best interests of the Kodiak Island Borough to amend KIBC 2.17.070 C to make it consistent with KIBC 1.01.110 A; and NOW, THEREFORE BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Kodiak Island Borough Page 1 of 2 Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Title 2 Administration and Personnel Chapter 2.16 Borough Assembly, Section 2.16.060 Declaring and Filling Vacancies is amended to read: 2.16.060 Declaring and filling vacancies. A. The assembly shall declare an assembly member's seat vacant when the assembly member: 1. resigns and the assembly accepts the resignation; 2. is convicted of a felony or an offense involving a violation of the oath of office; 3. no longer physically resides in the borough; or 4. (a) misses more than four (4) unexcused consecutive regularly scheduled and actually held assembly meetings, or (b) without excuse, misses one -half (1/2) of all regular assembly meetings of the assembly (which includes all scheduled meetings whether those meetings were held, adjourned, recessed or canceled) in a six (6) month period. Section 3: Title 2 Administration and Personnel Chapter 2.17 Rules of the Assembly, Section 2.17.070 C Ordinances, Resolutions, and Motions Kodiak Island Borough Code Section 2.17.070 C is amended to read: 2.17.070 C Rules of the Assembly Section 4: This ordinance is retroactive to the effective date of Ordinance 90 -18. Section 5: C. An ordinance takes effect upon adoption or at a later date specified in the ordinance, or the ordinance may have retroactive affect if it is adopted under and References KIBC 1.01.110 A. The amendment of KIBC Code 2.16.060 A.4. is specifically intended to and shall release or extinguish any penalty, forfeiture, liability incurred by any assembly person for absences from assembly meetings during the period from May, 1990 until the date of its adoption in 2007 except to the extent they may have violated the ordinance as amended and clarified herein. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2007 ATTEST: Jerome M. Selby, Borough Mayor Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Kodiak Island Borough Page 2 of 2 For Your Information: Attached is a copy of Chapter 2.17, RULES OF THE ASSEMBLY, Section 2.17.020 GENERAL RULES of the Kodiak Island Borough code that defines a "meeting ". In the work session there was discussion that "meeting" needed to be defined. Sections: Chapter 2.17 RULES OF THE ASSEMBLY 2.17.010 Authority. 2.17.020 General rules. 2.17.030 Types of meetings. 2.17.040 Organization and presiding officer. 2.17.050 Committees and duties. 2.17.060 Order of business and agenda. 2.17.070 Ordinances, resolutions, and motions. 2.17.075 Emergency ordinances. 2.17.080 Debate. 2.17.090 Citizens' rights. 2.17.100 Miscellaneous. 2.17.010 -- 2.17.030 2.17.010 Authority. AS 29.20.160(1) provides that the assembly determines its own rules and order of business. The following rules shall be in effect upon their adoption by the assembly and until such time as they are amended or new rules adopted, in the manner provided herein. (Ord. 86- 13-0(A) §3(part), 1986). 2.17.020 General rules. A. Public meetings: All official meetings of the assembly shall be open to the public. The journal of proceedings shall be open to public inspection. B. Quorum: Four (4) members of the assembly shall constitute a quorum. Attendance of assembly members shall be in person and may not be by teleconference, except for work sessions and emergency meetings. In the event of an emergency meeting, the provisions set in AS44.52.310 shall be followed. C. Absences: No member of the assembly may absent himself from any regular or special meeting of the assembly except for good cause. An assembly member who is unable to attend a meeting shall advise the clerk or the mayor of the contemplated absence and the reason for that absence. During the course of the meeting from which the member is absent, the chair shall cause the record to reflect the absence of the member, the reason for the absence and whether the absence is excused by the assembly. D. Rules of order: "Roberts Rules of Order Current Edition" shall govern the proceedings of the assembly in all cases, unless they are in conflict with these rules. When such a conflict exists, this ordinance prevails. (Ord. FY2007 -14 §2, 2007; Ord. 2001 -11 §2, 2001 Ord. 98 -02 §4 (part), 1998; Ord. 93 -69 §2, 1993; Ord. 86- 13 -0(A) §3(part), 1986). 2.17.030 Types of meetings. A. Regular meeting: The assembly shall meet in the borough assembly chambers, in the borough administration building, Kodiak, Alaska, and are to commence at 7:30 p.m. on the first and third Thursday of each month, or such other time and place as may be designated in the notice of the meeting. Public notice of changed meetings shall be made in at least one (1) newspaper of general circulation in the borough. Meetings shall adjourn at 11:30 p.m. unless the time is extended by a majority of the votes to which the assembly is entitled. No meeting shall be extended beyond 3 For statutory provisions regarding the assembly determining its own rules of procedure and order of business, see AS 29.20.160. 2 -13 (KIB 06/07) Supp. #49 2 -14 2.17.030 midnight, unless extended by a two - thirds (2/3) vote of the assembly, except the meeting shall be extended to set the time and place for resumption of the meeting. B. Special meetings: Special meetings may be called by the mayor, deputy presiding officer, or by three (3) members of the assembly and, except in an emergency, upon no less than twenty - four (24) hours effective notice to each member. Effective notice shall be written or oral. The notice shall indicate time, location and the purpose of the special meeting and by whom called. The calendar for a special meeting shall be as follows: 1. roll call 2. citizens' comments 3. consideration of matters in the call for the special meeting 4. adjournment Matters not included in the call for the special meeting may not be considered. Special meetings shall commence and adjourn as provided in subsection A of this section unless specifically amended. C. Adjourned or recessed meetings: If the assembly has not concluded the agenda, the time and place of the resumption of the meeting shall be announced or the items shall be carried over to the following regular meeting or taken up at a special meeting called for that purpose. D. Work sessions: The assembly may meet informally in work sessions, at the call of the mayor, deputy presiding officer, or by three (3) members of the assembly, to review forthcoming programs of the borough, receive progress reports on current programs or projects or receive other similar information from the manager, provided that all discussions and conclusions thereon shall be informal. Work sessions are public and no formal action shall be taken by the assembly. E. Executive sessions: The assembly may meet in executive session, at the call of the mayor, deputy presiding officer, or any four (4) members of the assembly, only during a regular or special meeting, to privately discuss matters of confidential concern to the well being of the borough government. 1. Upon adoption of a motion stating the purpose for an executive session the assembly in closed session may discuss: a. potential or pending litigation to which the borough may become or is a party; b. any matter the immediate public knowledge of which would tend to affect adversely the finances of the borough; c. any matter which would tend to defame or prejudice the character or reputation of any person, except that the person may request a public discussion; or d. matters involving negotiations with labor organizations representing borough employees; e. matters which by law or ordinance are required to be confidential; f. confidential attorney - client communications made for the purpose of facilitating the rendition of professional legal services to the borough; g. matters pertaining to personnel; and h. land acquisition or disposal. F. This section does not apply to quasi-judicial boards when holding a meeting solely to make a decision in an adjudicatory proceeding. (Ord. FY2005 -07 §5 (part), 2004; Ord. 04 -09 §2, 2004; Ord. 98 -02 §4 (part), 1998; Ord. 87 -11 -0 §3, 1987; Ord. 86- 13 -O(A) §3(part), 1986). (KIB 06/07) Supp. #49 Meeting Started: 7:03 p.m. Monashka Bay Road Service Area Regular Meeting Bayside Fire Hall August 9, 2007 Roll Call: Randy Spivey, Dave Sundberg, Darlene Turner, and Drew DeVries. Chaz Glagolich is excused. Minutes: Randy makes motion to approve July 19, 2007 minutes. Dave seconds. Minutes were approved unanimously. Public Comments: None Old Business: KIB Ordinance No. 98 -06 - Tracy Mitchell is present to explain some minor changes and field questions. They are still in preliminary stages of design. They estimate that the new settling pond will be 20' by 20'. The curtain system has been down graded to only one curtain and it would not need as much of extensions of roads. The disturbance will be minimal and only necessary trees will be cut. A topography map was brought in and it showed the Greenbelt closest to Marmot Rd residents is 107' in altitude and this should run into the 105' Leach ate greenbelt dump. The water quality will be better. They have not looked into using the drainage towards the ocean that is northwest of the proposed site. In 1998 the MBSD approved this ordinance. Now the Borough is coming back to obtain our concurrences of the proposed changes. The EPA and DEC are directly involved with this. The Borough is in the process of getting a "Nifty's" permit. - Which deals with National Pollution Discharge Elimination System and the DEC. This is a specific permit and not a general one. The existing systems with three ponds are all connected to the toe drain. The seepage minimal compared to what is being caught by the current system. Al, the foreman, will be happy to give a tour of this area, just call for an appointment. Discussion: We are not appealing anything or changing anything. The ordinance is done and the Borough is coming to us with this construction change to make quality of life better. They have discovered that they have a problem and they can make it better. On July 17 in our Special Work Session, they gave us an opportunity to speak to this issue and so we could walk the proposed site. We also suggested that the affected residents be contacted. Randy Spivey makes motion to allow them to cut the trees and remove all vegetation in greenbelt to facilitate the construction. Dave Sundberg seconds motion. 1 Discussion: Drew DeVries would like to amend motion to state that this is not our decision. Our attendance today suggests that our residents want this done right. We had a meeting on this over a couple weeks ago and to tell you the truth, I don't see the engineering reports or leg work done. None of the residents of Three Sister's whom also live on this drainage got any notification letters. We are tasked by oath to represent the public in our concurrence, and what I'm hearing is that they are not 100 percent sure what is being proposed to them. How can we attach our name to this? This is important for everyone to do the leg work and bring it to the right committees. I feel that we are the last hurdle after the DEC and EPA. And by voting for the motion, we are in fact giving KIB the green light for a project that is undefined and has risk. We have looked at the elevation but we have not talked about the water table at all. Furthermore, I would like to amend the motion. And put this back on the Borough's plate - that they would form the appropriate committees to deal with this ordinance and take our name off of this. Possibly another Community Development Committee would be more suited for this task. Randy suggests that they could clear the vegetation and they would still have to work with the residents on the building of the drainage system. The good thing of coming before this board is that the affect people notified. Maybe it doesn't belong here but it's a good avenue to getting to the people that are affected. Is there a way of by passing this board and still getting the affected people? On the other hand, as soon as this is repaired then the better it will be for us. And can't we all go to the KIB with our concerns? Drew would like to make an amendment to the motion that the MB to form a committee and MRSD's name should not be attached to the ordinance. There is no second and the amendment dies. Randy states the Borough is asking us to make it available for them right now. If we have concerns about our water, then we need to ask where they need to go with their concerns. Darlene: we are not the proper body and the Borough needs to work with the stake holders on Marmot and Three Sisters. Motion is to cut and remove the trees and vegetation in all the areas that they would like for the leach ate system and install the settling pond. Roll Call Vote: Randy Spivey — yes, Dave Sundberg — yes, Darlene Turner — yes, and Drew DeVries — no. Motion passes. Drew makes motion to remove our name, MBRS off of future ordinances and appeals. And we would like to make a recommendation to MB to form a Citizens Advisory Committee to deal with the health and habitat issues of the Leach ate system at the Dump. Randy seconds motion and recommendation. Discussion: Would we like to have some control of the Greenbelt? We are mandated by law to have a code. And we are happy that they contacted everyone. They need to have a 2 residence stake holder that deal with quality of life issues. The Greenbelt was developed for everyone and not just Marmot. We have already said that we concur with this work. And we would like to see people with more interest than us. Motion: to remove our name, MBRS, off of future ordinances and appeals. And we would like to make a recommendation to MB to form a Citizens Advisory Committee to deal with the health and habitat issues of the Leach ate system at the Dump. Role Call Vote: Randy Spivey — yes, Dave Sundberg — yes, Darlene Turner — yes, and Drew DeVries — yes. Motion passes unanimous. New Business: none Public Comments: Shawn Dillon — states that last time improvements were done; he traced some discolored water back toward where they were blasting. This killed all of the fish, and bacteria with large iron content don't make it smell that bad. Another concern is that in the ordinance, Section 1 reads ... "this ordinance is not of a general and permanent nature." Does that mean that it can be changed any time? Or can it change the original ordinance to set up the Greenbelt? Because you know, we all had to fight tooth and nail for that Greenbelt. We had a Community Development Board when the Greenbelt was place. Now it went away and all we have is MBRSD. There is one other provision to the Greenbelt and that is the playground. This was left for us if there was a need for a playground. (Section 4 of the ordinance) And this opens the door for all of the MBRSD to be stake holders. Jean Dickson - believes this is the wrong avenue for her question. We need to be watch dogs to make sure our water is safe from contaminates. If someone needs to cut a few trees to make it better than I'm for that. But I feel I need to be more informed of exactly how they are taking care of the seepage. There are wells in our area that have extremely high concentrates of Magnesium and Iron. Tia Leber — Would this committee be in addition to the Soil Waste Advisory Board that they are rectifying? This deals with problems with expanding, shipping off and possible closure of the Dump. I am all for cleaning the water quality, but is this going to do the job? Or are they going to come back in another five year and ask to cut down more trees? Paul Zimmer — What does the Greenbelt allow? This ordinance allows this expansion? If this going to improve the water quality then we are for it. But if it expands into the Greenbelt and defeats the purpose of the buffer then that's another question. Board Comments: Dave Sundberg — I got a tour of the Dump earlier that week. And because of the recent rains, where the Leach ate leaks it was clear water. They are looking to cut a half a dozen 3 to a dozen trees and collect the natural seepage into a low spot. This is an improvement to what is happening right now. Thanks to Tracy for education of the Dump Facilities. Randy Spivey — There is a lot of good questions brought up about this system and I'm concerned about it also. I drink my well water. The reason it shouldn't be here is that this board doesn't have those answers. The concerned people really need to go to the Borough and ask them. Drew DeVries —We have all made an oath to the public to represent them. And when something is put on our door step, we have a commitment to deal with it the best we can. It doesn't necessarily affect all of us down stream, but every day we have a choice to do the right thing. Hopefully we can follow this through. Darlene Turner — Thanks for our attendance tonight. And Tracy, thanks for bringing this to us and for doing what you said that you would and getting the letters out to the people on Marmot Drive. If you (the public) have any question of what's going on feel free to call the (Tracy) Borough. Adjournment: 8:21 p.m. Darlene Turner President Monas a Bay Attendance q) 6 7 D Date Drew DeVries P y Road Service Area Secretary/ Treasurer Pat Jacobson Box 8707 Tracy Mitchell 486 -9348 Jean Dickson 486 -2431 Shawn Dillon Box 1896 Tia Leber 481 -7285 Paul Zimmer Date 4 KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSIO REGULAR MEETING SEPTEMBER 19, 2 MINUTES 007) BOROUGH CLERK'S OFFICE CALL TO ORDER The regular meeting of the Planning and Zoning Commission was called to order at 7:35 p.m. by CHAIR KING on September 19, 2007 in the Borough Assembly Chambers. ROLL CALL Commissioners Present Excused Absent Others Present David King X Duane Dvorak, Associate Planner Gary Carver X Community Development Dept. Brent Watkins X Sheila Smith, Secretary Bill Kersch X Community Development Dept. Casey Janz X Gary Juenger X Vacant A quorum was established. COMMISSIONER WATKINS MOVED TO EXUSE absent COMMISSIONERS CARVER AND KERSCH. COMMISSIONER JANZ SECONDED the motion, and it CARRIED by unanimous voice vote. APPROVAL OF AGENDA COMMISSIONER JANZ MOVED TO APPROVE the agenda as presented. The motion was SECONDED by COMMISSIONER JUENGER, and it CARRIED by unanimous voice vote. APPROVAL OF MINUTES COMMISSIONER WATKINS MOVED TO APPROVE the minutes as submitted. COMMISSIONER JANZ SECONDED the motion, and it CARRIED by unanimous voice vote. AUDIENCE COMMENTS AND APPEARANCE REQUESTS. There were no audience comments or appearance requests. PUBLIC HEARINGS A. Case S08 -004. Request for a replat, according to KIBC 16.40, of Tract D -1, and a portion of U.S. Surveys 2261 and 4947 (Plat 93 -27) and an unsubdivided portion of U.S. Surveys 2261 and 4947 on Near Island creating Tracts D -1A and D -1B, U.S. Surveys 2261 and 4947 on Near Island including an extension of Dog Salmon Bay Road and creating City Tideland Tract N -50 from a portion of Alaska Tideland Survey 1266. Staff reported (20) public hearing notices were distributed for this case with one response received in favor. The request involves a replat of existing Tract D1 but also adds additional unsubdivided land area to create the 2 parcels, D1 -A and DI -B. In addition to the lot creation, there's a dedication of right -of -way that brings Dog Salmon Bay Rd down to the water line. There is no construction or utility installation required for this subdivision. The plat also proposes to create Tract N -50 to provide for a new ferry terminal. Staff observed zoning boundaries which currently coincide with the lot boundaries that would be altered with the subdivision which staff recommended a condition of approval to initiate a rezone. COMMISSIONER JANZ inquired about cars being able to drive on and off of the ferry. September 19, 2007 P & Z Commission Meeting Minutes Page 1 of 5 Dvorak stated they will use a transfer bridge to take the cars on and off that would eliminate the use of the elevator. He also stated that it can't be used for anything other than ferry service. COMMISSIONER JUENGER MOVED TO GRANT preliminary approval for the replat, according to KIBC 16.40, of Tract D -1 (Plat 93 -27) and an unsubdivided portion of U.S. Surveys 2261 and 4947 on Near Island creating Tracts D -1A and D -1B, U.S. Survey 2261 and 4947 on Near Island including an extension of Dog Salmon Bay Road and creating City Tideland Tract N -50 from a portion of Alaska Tideland Survey 1266, subject to the conditions of approval contained in the staff report dated September 10, 2007, and to adopt the findings in that staff report as "Findings of Fact" for this case. COMMISSIONER JANZ SECONDED the motion. Regular session closed: Public hearing open: Public hearing closed: Regular session open: CONDITIONS OF APPROVAL 1. Subdivider shall initiate a rezone request to conform the applicable zoning districts to the new subdivision pattern that will be created by this plat. In addition, the rezone will also address the provision of an appropriate zoning district to proposed City Tideland Tract N -50. FINDINGS OF FACT 1. Subject to conditions of approval, this plat meets the minimum standards of survey accuracy and proper preparation of plats required in Title 16 of the Borough Code. 2. Subject to conditions of approval, this plat meets all the requirements of Title 17 of the Borough Code. 3. This plat provides a subdivision of land that is consistent with adopted Borough plans for this area. The question was called, and it CARRIED 4 -0. B) Case 08 -007. Request a Conditional Use Permit, according to KIBC 17.67.020.B, to allow non - recreational resource extraction activities and related structures in the C- Conservation zoning district (KIBC 17.13.040.F). Staff indicated (7) public hearing notices were sent out with no responses were received. This operation has been ongoing for about 20 years, and has had a prior Conditional Use Permit. Staff received a Coastal Management Review notice that alerted us to changes taking place. It was through the Coastal Management process that we informed Minex International that a new conditional use permit is required to replace the one that expired years ago. They did make application for this review. Staff did not do a site visit, but we do have the materials submitted that were submitted for the Coastal Management process. Because this request has already went through the Coastal Management process we have the benefit of seeing the responses of the other resource and regulatory agencies involved. This operation has changed over the years. They have described the extent of the resource extraction they plan to do (20 -40 acres a year), what kind of equipment they plan to use doing the extraction, and of the extracted material which is primarily beach sand approximately 85% of that material will be replaced to its point of origin. Staff recommended approval with 3 conditions, one of which the permit be good for 5 years. Staff feels that is prudent because things, people, equipment of the operation change. Staff feels it would be better to not give carte blanche approval without some sort of review in the future. The other conditions just require them to comply with all other State and Federal rules, and if any change in the scope they need to come back and go through another public hearing process before they proceed. COMMISSIONER JANZ MOVED TO GRANT a request for A Conditional Use Permit, according to KIBC 17.67.020.B, to allow non - recreational resource extraction activities and related structures in the C- Conservation zoning district (KIBC 17.13.040.F), subject to the conditions of approval contained in the September 19, 2007 P & Z Commission Meeting Minutes Page 2 of 5 staff report dated August 21, 2007, and to adopt the findings contained in the staff report dated August 24, 2007 as "Findings of Fact" for Case 08 -007. COMMISSIONER WATKINS SECONDED the motion. Regular session closed: Public hearing opened: Public hearing closed: Regular session opened: CONDITIONS OF APPROVAL 1. The conditional use permit is valid for a period of five (5) years. At the end of five (5) years, further resource extraction activities will require a one (1) time extension (for 5 years) of the conditional use permit based on a review by Community Development Department staff of the activities conducted during the first five (5) years. 2. Any change or enlargement of the scope, scale, size, methods of operation, or location of the resource extraction activities is not permitted under this conditional use permit. A reduction in the size, location, or quantities extracted is permitted. 3. All applicable state and federal laws, rules, and regulations governing this proposed activity, and all limiting stipulations and conditions attached to such third party approval, are hereby incorporated, by reference, into this local approval. FINDINGS OF FACT 17.67.050 A. That the conditional use will preserve the value, spirit, character and integrity of the surrounding area. It appears that the scale of operations of the proposed use will preserve the value, spirit, character and integrity of the surrounding area provided certain conditions are adhered to. The Commission recognizes that Sitkinak Island contains important wildlife habitat and that this must be considered in evaluation of a conditional use permit for resource extraction activities. Although the Borough lacks the expertise to make site specific recommendations to protect biological resources, the Planning and Zoning Commission does not feel that this should preclude issuance of a conditional use permit. Detailed site specific requirements or stipulations can and will be incorporated into the required state and federal permits for the proposed activity. At the state level, stipulations on the mining activities are included as a part of the Alaska Coastal Management Program (ACMP) consistency determination from the Office of Management and Budget. The recommendations of all state resource agencies having jurisdiction (e.g., ADEC, ADF &G, DNR) are considered and incorporated into the DGC consistency determination. At the federal level, conditions or stipulations can be attached to the required permits from the U.S. Army Corps of Engineers (COE) and the Environmental Protection Agency (EPA). The federal permitting process also includes review by and incorporation of recommendations from the federal resource agencies having jurisdiction (e.g., USF &WS, NMFS, etc.). The Planning and Zoning Commission finds that the detailed state and federal permitting process will adequately protect important wildlife habitat and biological resources. Therefore, the land use activity of excavating 750,000 cubic yards of material, stock piling overburden and reclaiming disturbed area, under appropriate conditions, should not adversely impact or be detrimental to the value, spirit, character, and integrity of the surrounding area. 17.6 7.050 B. That the conditional use fulfills all other requirements of this chapterpertaining to the conditional use in question. The proposed use and support activities will fulfill all other requirements of the C- Conservation zoning district such as lot area and setback requirements. Adherence to other borough ordinances is handled through the zoning compliance and building permit process. 17.67.050 C. That granting the conditional use permit will not be harmful to the public health, safety, convenience and comfort. September 19, 2007 P & Z Commission Meeting Minutes Page 3 of 5 The proposed use should not be harmful to the public's health, safety, convenience, or comfort. Sitkinak Island is isolated and not generally used by the public. Resource extraction, under appropriate conditions, can take place in such a manner as to minimize conflicts with the grazing activities currently located on the island. Most importantly, placer mining requires an extensive state and federal review and permitting process. The proposed mining activity has been found consistent with the KIBCMP and the ACMP. This extensive review process will ensure protection of the public's health, safety, and general welfare. 17.67.050 D. That sufficient setbacks, lot area, buffers or other safeguards are being provided to meet the conditions listed in subsections A through C of this section. This mining operation has been reviewed periodically and has not been changed significantly since the original CUP was granted by the Commission in Case 87 -068. The applicant has obtained all required permits and reviews at all levels of government. Since the scope of the project has not changed substantially since the original approval, the setbacks, lot areas, buffers and other safeguards imposed on this project should still be adequate to ensure the project complies with the conditions listed in subsections A through C of this section. 17.67.050 E. If the permit is for a public use or structure, the commission must find that the proposed use or structure is located in a manner, which will maximize public benefits. Not applicable. The question was called, and it CARRIED 4 -0. OLD BUSINESS There was no old business. NEW BUSINESS There was no new business. COMMUNICATIONS COMMISSIONER JANZ MOVED TO ACKNOWLEDGE receipt of communication items A - E as submitted. COMMISSIONER WATKINS SECONDED the motion, and it CARRIED by unanimous voice vote. REPORTS Meeting schedule: • October 10, 2007 work session at 7:30 p.m. in the KIB Conference Room • October 17, 2007 regular meeting at 7:30 p.m. in the Assembly Chambers Dvorak stated the public hearing for the Draft Comprehensive Plan is on the October agenda. Additional work has been done on the maps and narrative with the goal to obtain a complete draft of the plan by the end of the month. He also stated Bud Cassidy is in Fairbanks attending the LEPC /SERC meetings and will be back next week. COMMISSIONER WATKINS MOVED TO ACKNOWLEDGE receipt of reports. COMMISSIONER JANZ SECONDED the motion, and it CARRIED by unanimous voice vote. AUDIENCE COMMENTS There were no audience comments. COMMISSIONERS' COMMENTS COMMISSIONER JANZ inquired about if the Womens Bay Comp Plan has been approved by the Assembly yet. She also said community members have concerns about using the high quality land on Near Island for government buildings. That wouldn't add to our tax base. September 19, 2007 P & Z Commission Meeting Minutes Page 4 of 5 Dvorak stated it was adopted earlier this year, and he believes there are still some minor edits to be made before it is published. He also said if there are still community concerns, now is the time to bring them up. COMMISSIONER JUENGER thanked staff for their efforts of pulling things together for this meeting. COMMISSIONER WATKINS stated he will not be in town for the month of October. CHAIR KING stated he will not be here for the October 17 meeting. ADJOURNMENT COMMISSIONER JANZ MOVED TO ADJOURN the meeting. COMMISSIONER WATKINS SECONDED the motion, and it CARRIED by unanimous voice vote. CHAIR KING ADJOURNED the regular meeting at 8:15 p.m. ATTEST By: Sheila Smith, Secretary Community Development Department DATE APPROVED: October 17, 2007 September 19, 2007 KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION By: P & Z Commission Meeting Minutes Page 5 of 5