2008-12-11 Work SessionKodiak Island Borough
Assembly Work Session
Thursday, December 11, 2008 7:30 p.m., Borough Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda
packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed
when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal
Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of
the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting.
CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
AGENDA ITEMS TO:
1 Present KIB Legislative Matters to Representative Alan Austerman
2. Hear a Presentation From Threshold Services, Inc.
1. Give Direction to Staff Regarding Tract B, Bells Flats Gravel Site — Negotiate or RFP
2. Give Direction to Staff Regarding Paving of Service Area Roads
PACKET REVIEW
PUBLIC HEARING
Ordinance No. FY2009 -13 Amending Kodiak Island Borough Code Of Ordinances Title 3
Revenue And Finance Chapter 3.35 Real Property Tax Section 3.35.080 Reserve Policies.
Ordinance No. FY2009-01C Amending Ordinance No. FY2009 -01 Fiscal Year 2009 Budget by
Amending Budgets to Provide for Additional Expenditures and Moving Funds Between Projects.
CONTRACTS
Contract No. FY2009 -07 with New World Systems Corporation to Upgrade the KIB Financial
System from the AS400 Financial System to a Network Platform.
Contract No. FY2009 -03 Six Months Extension of Threshold Services, Inc. Contract.
RESOLUTIONS
Resolution No. FY2009 -15 Updating The Name Of The Law Firm To Jamin Law Office And
Specifying a Validity Date For The Agreement.
*Resolution No. FY2009 -16 Certifying the FY2009 Shared Fisheries Business Tax Program
Application To Be True and Correct.
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLY MEMBERS COMMENTS
UPCOMING EVENTS:
12/12 Kodiak Island Borough Mayor's Conference
12/13 Boards and Committees Training
01/10 Strategic Planning Meeting
02/06 Boards, Committees, Commission Reception
02/17 Juneau Legislative Reception
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2009 -06
Introduced by: Manager Gifford
Requested by: KIB Assembly
Drafted by: Special Projects Support
Christiansen
Introduced: 09/18/2008
Adopted: 09/18/2008
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
ADOPTING A STATE LEGISLATIVE CAPITAL IMPROVEMENT PROJECTS
PRIORITY LIST FOR THE 2009 LEGISLATIVE SESSION
WHEREAS, the Kodiak Island Borough represents approximately 15,000 residents of the
Kodiak Island Archipelago living in six incorporated cities and one community governed by a
tribal council government; and
WHEREAS, a Borough -wide State legislative capital improvement program has been adopted
by the Kodiak Island Borough Assembly that identifies the major needs of the island community
for the next five years; and
WHEREAS, the Kodiak Island Borough has identified major projects to submit to the Alaska
State Legislative Delegation for funding consideration;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: The Kodiak Island Borough's State Legislative capital improvement project
priorities for the 2009 legislative session are as follows:
1. Kodiak Island Borough School Seismic Vulnerability Upgrades
Total cost for the project: $8,175,532
State funding request: $4,623,062
Kodiak School facilities have been examined for their ability to withstand earthquakes
that occur frequently in Kodiak. A structural engineering firm was contracted to perform
the calculations and review potential ground motions and determine how these buildings
would respond to ground shaking. Many of the buildings have been found to be
deficient, but with seismic retrofitting and a benefit/cost analysis that demonstrates that
these upgrades are cost efficient, these community facilities can have an extended
useful life. The facilities included in this funding request include the Kodiak High School
Library, Kodiak Middle School, Peterson Elementary School and the Ouzinkie Village
School. The total cost of the seismic upgrades for the above schools includes funding
Kodiak Island Borough Resolution No. FY2009 -06
Page 1 of 5
from FEMA grants totaling $2,252,470, a legislative grant of $910,000 and local funding
of $390,000 for a grand total of $3,552,470. The Kodiak Island Borough School District
has submitted this project funding request of $4,623,062 to DEED as the number one
project on their FY10 Six Year Capital Improvement Plan, and if approved, funding
would be provided through the DEED Major Maintenance Program.
2. Kodiak AD &FG Research Facility
Total cost for the project: $14,600,000
State funding request: $3,110,000
Locating a new Alaska Department of Fish and Game building on Near Island and
adjacent to its federal research facility counterpart will have many obvious advantages;
information sharing is just one. But the real justification for a new state research facility
is the shortcomings found in the existing ADF &G building constructed in 1973. These
deficiencies have been identified in the ASCG "Condition Survey" study of the existing
building performed in 2002. A second "Needs Assessment" report demonstrated that
there is a need for additional research and administrative space (approximately 60%
more), which includes basic lab space (which has been turned into office space in the
existing building). Though the cost of construction of a new facility is estimated to be
over $14,000,000, KIB is requesting $6,540,000 of that amount from the Exxon Valdez
Oil Spill (EVOS) Trustee Council. That request is associated with the "research" portion
of the facility. State funds in the amount of $4,950,000 have been provided to ADF &G
and the Borough for this project.
3. New High School/Vocational Education
Total cost for the project: $115,300,000
State funding request: $23,000,000
The existing Kodiak High School Complex was built in 1966, with several additions and
renovations made throughout the years. The building is now functionally obsolete, is not
energy efficient and is overcrowded. This project will construct a new high school
building on the present site, renovate the newest portion of the existing building for
administrative offices, and demolish the remaining obsolete structures.
The primary objective of this project is to design and build a new high school with a
focus on current and future vocational and academic educational needs enriched by
essential student activities and regional community involvement. This new facility would
be built using the latest technology for energy efficiencies and sustainability.
Approximately $23 million of the cost of this project is for vocational facilities that are
needed for the Kodiak Island region. Funding for this project will come from a borough -
wide bond sale which will include local contribution and state reimbursement. The extra
space needed for vocational education causes the entire project to exceed the square
foot per student requirement which reduces any State bond reimbursement from 70% to
60% for this project. Given the state's responsibility to provide vocational education and
training, and the significantly higher costs vocational facilities add to the new high
school, the Borough is requesting legislative funding for the vocational portion of the
new high school in the amount of $23 million.
Kodiak Island Borough Resolution No. FY2009 -06
Page2of5
4. New Nursing Home — Planning and Design
Total cost for the project: $700,000
State funding request: $700,000
Assessment and Analysis are the first steps necessary for planning the replacement of
Kodiak Island's only long term care facility. The current facility is housed in a former
hospital wing that was never meant to be a nursing home, presenting space, safety,
security, and privacy concerns in an institutional environment. Planning is necessary to
determine the needs and financial feasibility of a new facility.
5. Womens Bay Emergency Shelter
Total cost for the project: $800,000
State funding request: $800,000
There is no emergency shelter in the Womens Bay Community. Womens Bay is located
8 miles from town and 2 miles from the USGC Support Center. Should there be a
tsunami that destroys the roads, or a rock slide at Womens Mountain or Pillar Mountain,
the community of 670 residents would be without support services. A logical location for
an emergency shelter is adjacent and attached to the Womens Bay Fire House. A
proposed 2,500 square foot addition with an emergency generator is proposed.
6. Emergency Generators for Schools /Emergency Shelters
Total cost for the project: $1,200,000
State funding request: $1, 200,000
Many of our in -town and village school facilities act as emergency shelters during
extreme weather events or during times of natural or economic catastrophes. There is a
need to equip these school facilities with emergency generators to provide power for
sheltering needs and as back -up power during short term loss of electricity. These
generators will be housed permanently at the school facilities and become part of the
building. Located at these sites, they can be tested, operated and maintained as part of
the service to the overall school building.
7. East Elementary Traffic Flow Improvements
Total cost for the project: $495,000
State funding request: $495,000
Design and reconfiguration of the existing parking area will reduce risks by providing for
a safer separation of pedestrians, small vehicle traffic and bus loading /unloading. A new
design will require an increase in the total area of the parking lot to allow adequate
parking to support increased building usage and occupant load.
Kodiak Island Borough Resolution No. FY2009 -06
Page 3 of 5
8. Traffic Safety Lighting (City of Kodiak to United States Coast Guard Base)
Total cost for the project: $3,000,000
State funding request: $3,000,000
One road connects the City of Kodiak to the state airport, the U.S. Coast Guard Support
Center and neighborhoods located roughly south of town. The stretch of roadway
between the city limits and the Coast Guard Base is approximately five miles of dark,
two lane winding roadway with an average speed limit of 45 miles per hour. Street
lighting is a significant safety concern along this section of road.
9. Service Area Paving
Total cost for the project: $4,000,000
State funding request: $2,000,000
This project would address the need to pave portions of the service area either main
thoroughfares or busy neighborhood roads. Along with the paving of roads would come
improvements to major drainage course that runs through these areas.
Paving service area roads eliminates poor air quality experienced by the neighborhood
because Kodiak road construction material breaks down easily into fine air borne dust
and volcanic ash. Kodiak is at the right temperature for daily freeze of road bed material
that promotes major maintenance issues with the development of pot holes. The
Borough maintains approximately 25 miles of road within several service areas.
Residents located within the paving area will contribute, through a local improvement
district, a percentage of the engineering and improvement costs. Due to the high cost of
asphalt, the Borough is seeking the state's financial assistance to help to reduce the
cost to the residents. The Borough's paving needs exceed the total estimated project
budget; therefore projects will be phased in and completed on a priority basis as funding
is available.
10. Bayside Volunteer Fire Department Building Addition
Total cost for the project: $2,550,000
State funding request: $1,350,000
This proposed multi -use facility will be used to house fire fighting vehicles recently
purchased by the district as well as an emergency shelter during times of need. This
Fire Protection Area is the largest on Kodiak serving the majority of the population
outside the city limits of the City of Kodiak. The service area board has been setting
aside money each budget cycle towards the construction of this addition and will be a
major contributor in the financing of this facility. To date that amount is $1,200,000.
11. Baranof Park Improvements
Total cost for the project: $6,000,000
State funding request: $3,000,000
This project will replace the track and field drainage and bleacher area in Baranof Park.
The track is the only track located in the Kodiak region. In -field improvements will
include a synthetic surface for multi - purpose use and a "D° zone for field events. In
addition, a synthetic surface is planned for the second multi - purpose field located in the
Kodiak Island Borough Resolution No. FY2009 -06
Page 4 of 5
park. Baranof Park is a regional recreational facility that serves not only City residents,
but the entire region. The Park serves as an important educational facility for both the
Kodiak Middle School and the Kodiak High School, neither of which have any other
outdoor educational facilities. Improvements to Baranof Park are estimated to cost $6
million, with at least half the cost of these improvements attributed to Kodiak Island
Borough School District use of the facility. Detailed engineering plans and bid
specifications for these needed improvements will be completed this fiscal year. The
community is requesting funding support for half the estimated cost of constructing
these important community and school district facilities.
12. Rezanof Drive Pavement Rehabilitation and Upgrade
Total cost for the project: $10,000,000
State Funding Request: $10,000,000
Funding for this project would repair eight (8) miles of ruts on Rezanof Dr. in order to
extend the service life of the existing pavement on this state owned road, part of the
Alaska Highway system. Approximately 8 miles of road from Abercrombie to the Coast
Guard base have deteriorated with ruts and breaking pavement and is in need of serious
repair which would include pavement overlay of the entire 8 miles. Rezanof Dr. is the
route connecting Kodiak with the state -owned airport and the US Coast Guard base.
Rezanof Dr. is a major thoroughfare and used extensively by citizens living on the road
system on Kodiak Island from Abercrombie through the City of Kodiak and past the
Coast Guard base. This road is owned and maintained by the State of Alaska
Department of Transportation & Public Facilities and is listed as number 29 out of 100
worst roads in Alaska that need repair and no funding has been identified by ADOT &PF
to make the necessary repairs. This road project is not included in the Statewide
Transportation Improvements Program (STIP) and could be years away from receiving
any federal -aid funds.
Section 2:
ATTEST:
r
1
The Kodiak Island Borough administration is hereby instructed to advise our state
of Alaska delegation of the Capital Improvement Projects Priority List adopted by
the Kodiak Island Borough Assembly.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS EIGHTEENTH DAY OF SEPTEMBER, 2008
inik,
Nova M. Javier, CMq,/ Borough Clerk
Kodiak Island Borough
KODIAK ISLAND BOROUGH
Resolution No. FY2009 -06
Page5of5
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KODIAK ISLAND BOROUGH
RESOLUTION NO. FY 2009 -13
Introduced by:
Requested by:
Drafted by:
Introduced on:
Adopted on:
Manager Gifford
Assembly
Special Projects Support
Christiansen
12/04/2008
12/04/2008
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ASSEMBLY
ADOPTING A 2009 KODIAK ISLAND BOROUGH COMMUNITIES STATE LEGISLATIVE
CAPITAL IMPROVEMENT PROJECTS PRIORITY LIST
WHEREAS, the Kodiak Island Borough is a regional government representing the citizens and
communities of the Kodiak Island Archipelago; and
WHEREAS, these communities have developed a list of improvement and infrastructure needs
for their citizens and visitors; and
WHEREAS, these communities include the home rule City of Kodiak; the second class cities of
Akhiok, Larsen Bay, Old Harbor, Ouzinkie, and Port Lions; and the unincorporated community of
Karluk; and
WHEREAS, the Capital Improvement Project (CIP) needs are identified and prioritized by each
of the communities and forwarded to the Kodiak Island Borough for inclusion into an island wide
list to be considered by the Alaska Legislature;
NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that the Kodiak Island Borough Communities 2009 State Legislative Capital
Improvement Projects Priority Lists are as follows:
City of Kodiak
1. UV Water Treatment Facility Construction
2. State of Alaska Community Contract Jail
3. Emergency Operations Response Center Construction
4. Aleutian Homes Sewer and Water Replacement, Phase IV
5. New Public Library Construction
6. Baranof Park Improvements
7. Mission Road Safety Improvements
8. Leite Addition Subdivision Road Improvements
1. New Water Break
2. Electric Pre -Pay System
3. Tsunami Shelter
4. New Landfill
5. Fuel Truck
6. New Outfall Line
Kodiak Island Borough
City of Akhiok
Total
$3,800,000
$5,800,000
$1,350,000
$720,000
$5,000,000
$3,000,000
$15,000,000
$6,000,000
$40,670,000
$750,000
$80,000
$100,000
$250,000
$50,000
$1,000,000
Resolution No. FY2009 -13
Page 1 of 3
52 7. New Water Pump System and Holding Tank $750,000
53 8. New Multi- Purpose Building $300,000
54 9. Community Economic Development $350,000
55 10. Support Money For Building a Road to Alitak Cannery $5,000,000
56 11. Front End Loader $50,000
57 12. Garage /Pump House Repairs $150,000
58 Total $8,830,000
59
60
61 City of Larsen Bay
62 1. Docking Moorage for Fuel Barge & Header Piping $500,000
63 2. Deep Water Dock Facility $5,000,000
64 3. Replacement Aggregate for Road System Resurfacing $250,000
65 4. Upgrade City /Senior/Teen Center Municipal Building $750,000
66 5. Replace Machine Shop Building /Garage $650,000
67 Total $7,150,000
68
69
70 City of Old Harbor
71 1. Hydroelectric Power Project $6,000,000
72 2. Water System /Sewage Lagoon $2,000,000
73 3. Dock and Harbor Improvements $6,000,000
74 4. Tank Farm Re- Plumbing $15,000
75 5. Spill Response Vessel and Storage Shed $75,000
76 6. Airport Improvements $450,000
77 7. Maintenance Equipment (Dozer) $400,000
78 8. Park Renovation $50,000
79 Total $14,990,000
80
81
82 City of Ouzinkie
83 1. Dock/Industrial Area Construction & Development $2,140,000
84 2. Community Water Lines & Fire Hydrant Replacement $3,782,000
85 3. Electrical Infrastructure Replacement $600,000
86 4. Community Roads Construction - Engineering $3,700,000
87 5. Alternative Energy Wind Generation $250,000
88 6. Fork Lift Replacement $125,000
89 7. Fuel Truck Replacement $300,000
90 8. Heavy Equipment Storage Building $250,000
91 9. Rural Training & Development Center Planning $100,000
92 Total $11,247,000
93
94
95 City of Port Lions
96 1. Public Ferry Dock Facility $5,000,000
97 2. Outer Breakwater Stub $3,000,000
98 3. City Large Equipment $1,150,000
99 4. Harbor Water Main $750,000
100 5. Municipal Building $300,000
101 6. Maintenance Improvement Facility $200,000
102 7. Harbor Building $75,000
Kodiak Island Borough Resolution No. FY2009 -13
Page 2 of 3
103 8. Public Safety Building $300,000
104 9. Roads Upgrade and Extension $500,000
105 10. Causeway $500,000
106 11. New Subdivision $800,000
107 12. Boat Storage /Dry Dock Facility $650,000
108 13. Search and Rescue Skiff $100,000
109 14. Cold Storage Facility $250,000
110 Total $13,575,000
111
112
113 Community of Karluk
114 1. Pre -Pay Electric System $50,000
115 2. Landfill $500,000
116 3. Karluk Church Restoration $275,000
117 4. Permanent Dock Facility $12,000,000
118 5. Multi- purpose Building $750,000
119 6. Equipment: Fuel Truck, Bull Dozer, Fire Truck $600,000
120 7. Grant Writing Assistance $20,000
121 Total $14,195,000
122
123 BE IT FURTHER RESOLVED that the Kodiak Island Borough administration is hereby instructed
124 to advise the Governor and Legislative Representatives of the Kodiak Island Borough
125 Communities 2009 State Legislative Capital Improvements Project Priority List adopted by this
126 Assembly.
127
128
129
130
131
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FOURTH DAY OF DECEMBER 2008
KODIAK ISLAND BOROUGH
ATTEST: Jerome M. Selby, Borough Mayo
Nova ' Javier, CMC, --
Kodiak Island Borough Resolution No. FY2009 -13
Page 3 of 3
December 4, 2008
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Attn: Rick Gifford, Manager
Re: Threshold Contract Extension
Dear Mr. Gifford:
THRESHOLD SERVICES INC.
380 Von Scheele Way
Kodiak, AK 99615
Threshold Services Inc. is requesting a six month extension to our current contract that expires
December 31, 2008. Community recycling has increased significantly in the past 6 months. Our
recycle drop off stations have been a huge success requiring pick up every day. The tonnage for
the KIB has been over the base amount consistently for the past several months. With our
current rate of recycling, the current annual budget will be completely spent by February. This
rate of recycling shows that we are getting a commitment from the community.
In order to continue to provide recycling, Threshold would request that the contract be extended
at the current rate. We are developing a curbside recycle pick up program that will be in place
by January 15, 2009. The initial areas would include neighborhoods in Service District One as
well as an expansion of our business collections. We would be charging customers for this
service but we would keep track of the weights that were collected from these customers and
deduct that quantity from our monthly MB weight, thus reducing the cost to the Borough.
Recycling comes with a cost. The prices being offered for commodities in Seattle have literally
gone to 0; recycled materials no longer have a value. The high price of fuel has increased our
cost to ship material to Seattle. This is not a money making endeavor. If our residential program
is not successful and we do not receive support from the KIB we will have to remove our recycle
stations.
Threshold is continuing to expand our services by providing confidential document shredding,
refrigerant evacuation services and collection of cooking oil for recycle as heating oil in our
warehouse. We have completed the purchase of our building with the help of a loan and grant
combination from USDA and we have received a grant from RCAC to conduct a composting
feasibility study. If composting sounds like a viable option based on the feasibility study,
recycled materials that would be collected and shipped off island would have a local use.
We are requesting your support of our recycle effort through the next 6 months. If you have any
questions please do not hesitate to call.
Sincer
Chris Lynch
President
v) `
18.20.120 Land disposal methods.
The assembly may select any of the following disposal methods:
A. Where specifically permitted under this title, direct negotiations with interested
parties who seek to acquire borough land;
B. Invite sealed bids for borough land, specifying the time and place for receiving bids
and the minimum acceptable bid;
C. Offer borough land for sale at public auction, specifying a minimum acceptable bid;
or
D. Invite proposals to purchase borough land. The invitation shall specify the basis
upon which proposals shall be evaluated, which may include but need not be limited to
the proposed acquisition price, the quality of proposed development of land and its
benefit to the community, the qualifications and organization of the proposer, the value
of the proposed improvements to the land and the rents or resale prices to be charged
by the proposer. [Ord. 80 -28 -0 §1, 1980].
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Threshold Services Inc.
Kodiak, AK 99615
We Recycle
• Cardboard (Corrugated and paperboard) No waxed
cardboard
• Paper (Office, newspaper, magazines, envelopes, books,
etc.)
• Plastics (any chemical code)
• Tin (Food - grade)
• Aluminum (Food- Grade)
• Clean cooking oil (must be labeled and in a secure
container)
• Tires (there is a $0.30 /pound charge) place them
curbside
• Electronics (there is a $0.50 /pound charge) place
them curbside
• Batteries (please keep separate from other items)
• Florescent tube light bulbs (we can't accept
compact fluorescents)
Please call with any questions: (907)486 -6551
Please detach and mail to our P.O. Box or drop off at 380 Von Scheele Way by Dec l'
Name:
Mailing Address:
Physical Address:
Phone:
Comments:
Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Attn: Rick Gifford
Re: B Tract Gravel Pit Leases
November 4. 2003
Dear Rick:
PHONE: 9 07.486.3215 • FAX: 907,486,4889
ALASKA BUSINESS #00 1 858 • ALASKA CONTRACTORS #AA44 1
We Are An Equal Opportunity Employer
BRECHAN ENTERPRISES, INC / GENERAL CONTRACTORS
2705 MILL BAY ROAD • KODIAK, ALASKA 9961 5
We have been informed that the Borough may be considering allowing other contractors to lease
portions of the "B Tracts" for the purpose of gravel extraction. While it is not our concern how the
Borough deals with other contractors, issues involving the "B tracts" are very much our concern.
As you knoW, we have been attempting to negotiate a long term lease with you for nearly two years.
In the fall of 2007 you requested that we have a third
party surveyor survey the property for volume
of material. which we have done at a cost of over $8,206.00 dollars. You also requested a third party
appraisal. this requested appraisal took over seven months to complete and was finally completed in
May at a cost of $3,545.00. Once the appraisal was completed Jim Graham and I met with you and
Bud. At this meeting you expressed that your other commitments would preclude you both from any
n;e a ingful progress with our negotiations because of your heavy work load this summer. We jointly
agreed to finish the negotiations of a long term contract in the fall of this year. In the interim we have
continued our mining activities with the belief that we would complete our negotiations when your
schedule allowed.
In regard to the merits of allowing multiple operators to work the "B Tracts ":
• There is simply not enough space to allow two operations to work.- Historically there were
two operations on the Tracts. Prior to 2000 there was far more space. Over the years, as
material has been extracted, the size of the lake has increased, making it more challenging to
continue processing and stockpiling activities. You, Bud and the previous Assembly
agreed that all four tracts should be treated as one tract.
• Because of the configuration of the lake and the proximity of Russian Creek, it would be
difficult or impossible to manage the environmental effects on the river with multiple
operations. Brechan has been the responsible party and has managed to successfully comply
with all environmental issues. This has been made possible only because we have been able
to control the entire site for runoff and water discharge.
Since it would he impractical, or more likely, impossible for two operators to work the site, the only
logical conclusion can be that one operator will be the Borough's operator of choice. Some valid
questions to ask are:
• Page 2
1. Other companies may desire the site for their own use, but are they willing to
invest in the gravel processing equipment, concrete plant and trucks, asphalt
plant, paving equipment and have the personnel to operate them?
Are the other companie aware that current ADEC regulations will not allow a
3. newly installed asphalt plant to be set up within 1500 feet of houses?
Will they make the investment to procure the industrial zoned property for an
asphalt plant and concrete batch plant at another location?
4. Will they have all of this done within the next year? Will they have integrity
and experience to provide high quality material?
Over the years. Brechan has made a tremendous investment in plant and equipment to meet the local
needs and has served the community well. Brechan has consistently been one of Kodiak's top 20
employers. The importance of Brechan Enterprises to the local economic engine should not be
underestimated. Your decision has the potential to do irreparable harm to Brechan Enterprises, local
businesses, and citizens of the Kodiak Community.
Please understand we completely understand the need and benefits of a competitive business
environment. We welcome the competition and the record shows that we have competed and also
managed to serve the community and industry honorably throughout our history. The accusation that
Twin Peaks asserts in its letter October 20` 2003 that we have a monopoly is incorrect Twin Peaks,
oiher outside companies. have been able to compete and get contracts here in Kodiak. Brechan has
abVays sold asphalt and concrete to all companies. They also can buy concrete aggregate from us and
yi uld they choose to, set up another concrete batch plant. Intelligent people with a brief
ey;rmination of past Kodiak projects, would see that a multitude of other contractors. both local and
non local. have performed on projects here. There is no monopol
.1t this point you have an opinion from the Borough attorney that the assembly can continue with its
negotiations with Brechan Enterprises, or it can back out of the "good faith" negotiations and put the
13 pacts out for an RFP. To be clear, an RFP means that you will be picking one company over
another.
Rick. the simple fact is that we were negotiating with you for a long term lease on the B Tracts. We
have provided surveys, appraisals and made every attempt to expedite this agreement without
interfering with your time schedule. To now be starting from scratch, because of one letter from one
contractor that has no proven track record of managing aggregate
plants. and more importantly in it's short time of doing business rp Kodiak has le ft a of lawsuits
and shoddy work, is incomprehensible.
It is our sincere hope that you will ask the Assembly for a firm direction for you and Bud to continue
negotiations with Brechan Enterprises for a long -term lease on the B tracts as you originally
committed to.
Sincerely,
' -
Michael Martin
Brechan Enterprises, Inc.
President
Cc: Bud Cassidy
Assembly Members
November 4, 2008
mitt PEAKS CONSTRUCTION,
30590 SterlUng Mill Tay
P.0.-Box_70,Anc&arPoint-AK- 991556
Phones (9071-235-3802- - rium90Z2354044 - Sum& twispeals@maysaet
Califiett DI3E--- Hub Zona-11A
Rick Gifford
litomugh Manager
nil Minty Road
Kew:teak, Alaska-MI5
kkarigcr
Fresilent
Cc: KIB Assembly
AND BoRouGD
oetober 20, 00 H:,; OCT 2 1 2008
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Dear Mr. Gifford,
Twin Peaks Constructim Inc. requests-that your office-and theX1R.Assemb1y
bring back to the table for reconskteration, KIB Resulution IfFY2007-39which-wo1iI4
allow for the Borough to enter into along term "Sote-Source'lease forgravel
onKIBTractalt I.,_B.-2,B-3-an4B-4A, Bella-Flats AlaskaSucrivitiort
We would this-issue the Assemblywoulitinsteat
other interested contractors to have fair and access-to-this-resource: We havealways
found thatcompethionbenefits-twayonein_thecommmity while a monopoi
detriment of the community
vioultask act as-notice efour-petition-tothelalrfor disposathy
lease ofriportion ofthe above mentionedlucts extraction: Twin
Peedrs Construction understandathatthis raposat wouldby for
Thir market value
certain-stipulations-and- isvaling tosbidetty altalltermeet-eerutin
planning and _objetivs.
Thank you for your consideration and-welook-forwardtahearingfitmlou.
KODIAKISLAND BOROUGH
OFFICE of the MANAGER
MEMORANDUM
TO: The Honorable Mayor and Assembly of the Kodiak Island Borough
FROM: Rick Gifford, Borough Manager Asa
DATE: December 8, 2008
SUBJECT: State Grant for Road Service Area Rehabilitation and Paving
The Kodiak Island Borough has received a grant from the State of Alaska in the amount
of $2,500,000 for use towards "Road Service Area Rehabilitation and Paving ". Actual
use of the grant funds are subject to notification by the State that the sale of the bonds
have been ratified by the voters of the State and the bonds have been sold. The voters
did approve the sale of the road improvement bonds on the November 4 state -wide
election. The State has made an inquiry as to when the Borough might spend the
money. Apparently, they are planning to sell the bonds as the money is needed for the
various road projects around the state.
Staff has discussed this grant and the use of the funds. Several issues will need to be
addressed:
1. Process for determining which service area roads receive funding from this
grant.
Options may include contacting each road service area and request nominations
for road improvements and proposed funding options. Once we receive the
nominations, staff works with an engineering firm could to provide conceptual
estimates for each nomination. The Assembly then prioritizes the project list for
design. The projects would then be put out to bid and awarded upon Assembly
approval.
Another option would be to move forward on previously identified road
improvement projects such as the Woodland Acres Paving District. The
Woodland Acres paving project has already been engineered and designed, but
estimated costs require updating. In addition, a LID has been approved for the
Woodland Acres paving, but may need re- evaluating. Due to the previous
engineering work done, the Woodland Acres paving project could be completed
quicker than other road improvement projects. Other paving projects that have
been previously discussed include Selief Lane (Borough portion), Sharatin Road
and Bells Flat Road.
2. Will the service area road improvements be funded fully from the grant
funds or shared funding by the service area and /or a local improvement
district ( "LID ")?
Funding for the various road improvement projects could come 100% from the
grant or a combination of other funding sources, such as funding from the service
area and /or LID's. Attached to this memo for your information is information
compiled from other Boroughs in the state about their road service areas and
how they operate and fund various road improvements.
In addition to the above, the Assembly and the Road Service Area boards may want to
discuss the operations and funding of the road service areas. Topics might include:
■ Once roads have been paved, will adequate funding be set aside for
maintenance and re- paving in the future?
■ Some road service areas are having trouble getting volunteers to serve on
the boards and therefore, are operating without a full board. How might we get
better participation?
■ Should all road service areas be combined into one for greater efficiencies in
service delivery?
Road Service Area Information in other Boroughs
Aleutians East Borough: no road service areas
Bristol Bay Borough: not accessible on line, call 246 -8223 or email:
publicworks @theborough.com
Fairbanks North Star Borough:
Has a provision for loans to road service areas to fund road improvement capital
projects, major upgrades and other similar projects.
o Secured by a pledge of taxes to be levied in the rsa
o Subject to a vote in the service area
o 10 yr max term
o With interest
o Subject to Assembly approval
Fairbanks has a Road Service Area Committee made up of Assembly Members (3) and a
representative from each Service Area District (6). Each District represents several
service areas.
The Rural Services Division of the FNSB provides full administrative support (contracting,
procurement, bill payment, engineering, technical, inspection, budget mgmt, etc.) to
109 service areas
Kenai Peninsula Borough
A RIAD (Road Improvement Assessment District) is a process where the cost of upgrading a
road is spread out among all the benefited properties. The allocated cost will be charged to
each parcel owner by means of a special assessment.
Because a greater than 70% majority of the benefited parcel owners must agree to share in the
cost of the improvements of a RIAD, it is advisable to informally talk to your neighbors to get a
feeling if a majority is willing to sign a petition for the improvement. The project will not go
without a majority approval.
There are certain restrictions to forming a RIAD project. A special assessment district cannot be
formed if it violates any of the following restrictions:
1) The lien against any parcel in the district cannot exceed 21% of the parcels total
assessed value for gravel improvements, or 25% of the parcels total value for paving
improvements. (Note) While the charge to each parcel must be allocated equitably, the
owners or sponsors may prepay a portion of the charge to the affected parcels that fall
outside the percentages outlined above, to bring the allocation in to compliance.
2) A special assessment district may not be formed if parcels in the proposed district that
would bear more than 10% of the cost of the improvement are delinquent in payment
of borough real property taxes.
3) A special assessment district may not be formed if unimproved parcels represent more
than 40% of the total assessed value of the real property in the district.
4) The Road Maintenance Dept. must accept the project as one that can be constructed
and maintained.
Once petition is approved, Assembly must approve.
Kenai maintains staff for road maintenance: Director, Road Inspectors, Admin Asst
One Road Service Area Board consists of members from each region
Within the borough road service area, the borough may assess against the property of a state
or federal governmental unit and private property to be benefitted by a capital improvement
described in KPB 14.31.020 all or a portion of the cost of acquiring, installing or constructing the
capital improvement
Special assessments may be levied under this chapter only for the improvement of
existing roads in public rights -of -way to meet or exceed road construction standards adopted in
KPB 14.06.030 that are in effect at the time of the formation of the special assessment district
in which the assessments are levied.
Road service area match program.
A. There is established pursuant to KPB 5.20.170 a borough match program for RIAD projects
as follows:
1. The road service area board may authorize that up to 50 percent of the costs of a
RIAD be defrayed from this fund for local or internal subdivision roads subject to the
assembly's annual appropriation to the fund.
2. The road service area board may authorize that up to 70 percent of the costs of a
RIAD be defrayed from this fund to pave or improve a paved collector road subject to
the assembly's annual appropriation to the fund.
3. Where pavement RIADS include both parcels abutting a collector road and internal
subdivision roads, the parcels abutting the collector road qualify for up to a 70 percent
match, and the parcels abutting an internal subdivision road qualify for up to a 50
percent match.
B. A borough match may be considered for the following types of RIAD projects:
1. Pavement projects for roads which have been certified for borough maintenance;
2. Gravel projects for roads which do not meet borough standards in order that the
road be brought to borough standards;
3. Gravel projects for substandard gravel roads which have been certified for borough
maintenance in order that the road be brought to borough standards.
C. The annual deadline application for the match program is June 1 of each year.
D. The road service area board shall consider the following factors in evaluating applications
for the match program:
1. Whether it is economically feasible to improve the road to RSA certification
standards;
2. To what extent do the assessed values of properties support the scope of work for
each project;
3. The number of applications for projects received that year;
4. The funds available in the Road Improvement Assessment District Match Fund;
5. Whether an application for district formation has been previously filed and whether
conditions have changed to make the project more feasible than in past application
years;
6. The number of residents served;
7. The number of parcels served;
8. The feasibility of the project's compliance with KPB 14.31.080 criteria regarding
restrictions on formation; and
9. Whether there is alternate access to properties served by the road and the condition
of that alternate access.
E. The road service area board may adopt procedures by board resolution for implementation
of this program consistent with this chapter.
Mat -Su Borough:
Road maintenance is provided via the Public Works dept, division of Operations & Maintenance.
The Borough maintains over 1,003 miles of roads. Maintenance includes snow plowing, sanding,
grading, vegetation control, drainage control, minor construction, pavement crack sealing, pavement
patching, and sign construction and maintenance. Most of the construction work is contracted out to
private parties. Three Road Service Area Superintendents, one Construction Inspector /Superintendent,
and one technical person cover the entire Borough. Staff prepares and administers road maintenance
and road improvement contracts. They receive and respond to input (including complaints) from Road
Service Area Supervisors and citizens. They drive the roads and evaluate conditions. They monitor
weather patterns and attempt to anticipate maintenance needs in order to respond effectively.
Road Service Area Superintendants (Borough employee) oversee the 16 Road Service Areas
Road Service Area Supervisors (Board Chair) represent the community
A Local Improvement District (LID) may be used for upgrading roads for the purpose of
obtaining road maintenance. The entire (100 %) cost of the project, including the borough's
administrative time is borne by the petitioners.
b. The advantage of the LID process is to spread the cost between all the property owners
that will benefit from the improvement. The following is a summary of the LID process
for gravel road construction and improvements:
i. Petitioners must provide an engineered plan for the needed improvements.
ii. The Borough Engineer prepares a cost estimate and presents the proposal to the
Assembly for approval.
iii. If approved, the Borough takes the plan and bids the project out through the
normal Borough competitive bidding process.
iv. The Borough Engineer oversees the construction phase.
5.15.020 SERVICE AREA REVOLVING LOAN FUNDS.
Within the annual operating budget of the borough, the assembly may establish revolving loan
funds to provide moneys necessary for the operation of, and the acquisition of capital items in
service areas. The assembly by resolution may approve loans to service areas from the
revolving loan funds, and shall establish interest rates for the loans. Resolutions approving
loans from service area revolving funds may describe additional terms and conditions as the
assembly deems appropriate. Repayment of loans made from the service area revolving loan
funds shall be accomplished through additional mill levies within the service area indebted
unless the assembly approves some other means of repayment.
5.15.025 ROAD SERVICE AREAS; LOCAL SERVICE ROADS AND TRAILS FUNDS.
(A) Road maintenance and improvements within road service areas may be financed
by any method permitted by law, and by the assembly through funds made available to
the borough for local service roads and trails funds as allowed in this section.
(B) Local service roads and trails funds may be expended for up to 50 percent of the
cost of any road project as defined by the assembly with the remaining funds to be
generated through tax levies or other lawful means. The assembly may, however, expend
local service roads and trails funds for up to 100 percent of the cost of any road project, as
defined by the assembly, provided that the project supported is a collector road dedicated
to public use, or if the benefit derived by the general public in the project warrants full
funding through local service roads and trails funds.
Ketchikan
Some Road Service Districts are managed by Service District Boards while others are managed
by the Assembly.
Some Road Service Districts charge an annual fee.
50 06 065 Service area budget. The board of directors shall on or before the third Monday in
April submit a comprehensive budget to the borough manager with proposed appropriations
and a recommended tax levy or other measures to provide necessary income. The board of
directors may recommend that special assessments be levied for capital improvements
Ketchikan also has provision in their Code for Special Assessment Districts. It is not clear if the
same provisions apply to the service area districts.
51.05.010 Policy. The assembly establishes a policy whereby public improvements for which
assessments are authorized may be financed in whole or in part by the levy and collection of
special assessments upon the real property specially benefited by said improvements
51.05.170 Interim financing authority. The borough may provide by ordinance for the issuance
of interim financing warrants or other forms of indebtedness payable out of a special
assessment district fund to provide funds for payment of the costs and expense of any
improvements in such special assessment district These evidences of indebtedness shall bear
interest at a rate fixed by the assembly and shall be redeemed either in cash or by exchange for
bonds of such district Such evidences of indebtedness shall be redeemed in order of their
number whenever there is enough money in such fund to redeem such. To the extent the
borough is authorized to advance funds from the general fund for costs of improvements
evidences of indebtedness may be issued to the borough general fund as evidence of the
obligation of the special assessment district fund to repay any such advances.
DATE: December 9, 2008
TO: Borough Mayor and Assembly
THRU: Rick Gifford, Manager
Woody Koning, E/F Director
FROM: J. Wolfe, Project Assistant
RE: Projects Status Report
CURRENT PROJECTS STATUS:
NEW KODIAK POOL
Janssen Contracting is currently
slightly over 50% complete and the
project is on schedule and really
taking shape with exterior walls and
roof decking in place and roof
assembly nearing completion.
Concrete pool floor slab pour is
scheduled for Wednesday, December
10. Carpenters, plumbers, electricians
and tinners are busy inside. Work on
the exterior continues as weather
permits. The building is dried in and
temporary heat has been installed.
KEA is scheduled to hook up the
meter base this week for permanent
power.
g9-C
KODIAK ISLAND BOROUGH
ENGINEERING /FACILITIES DEPARTMENT
710 Mill Bay Road
Kodiak, AK 99615
(907) 486 -9341 Phone (907) 486 -9394 Fax
iwolfe@kodiakak.us
MEMORANDUM
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KODIAK MIDDLE SCHOOL SEISMIC UPGRADE
Phase IIA of the Middle School Seismic Upgrade is complete. Work completed this summer included the
structural upgrades to the remainder of the single story portion of the building and the 2 story classrooms
facing Rezanof. Phase IIB which includes the remainder of the 2 story portion excluding the gymnasium
will be completed next year under the same contract.
PETERSON ELEMENTARY SEISMIC UPGRADE
The seismic upgrade is complete and the long awaited FEMA HMGP grant in the amount of $540,508
has finally been awarded. KIB will be reimbursed for the project even though it was completed prior to
the grant being awarded.
OUZINKIE GYM RENOVATION AND SEISMIC UPGRADE
The seismic portion of the work was completed within the FEMA performance period and eligible for
reimbursement has been applied for. The asbestos has been abated and the restrooms remodel is complete
and bathrooms have been returned to students use. The gym addition is progressing and is currently
scheduled to be completed in March, 2009. Framing for the gym is almost complete and will be fmished
upon installation of fuel tank. Mechanical subcontractor is on site working on the interior components of
the mechanical room.
While construction during the school year is bound to be disruptive; the contractor, Wolverine Supply, is
adjusting their work schedule, working nights and weekends, to minimize impact to the school. The
Contractor will work through the holidays while school is out.
CHC ADDITION TO PKIMC
Brechan Enterprises began work on the
project in late May. The building is
dried in and the floor slab has been
poured. Site development is nearing
completion. Curb and gutter, sidewalks
and paving are complete. The majority
of the parking lot has been turned over
to PKIMC. The entire project is
currently just over 50% complete and
on schedule to be completed in May of
2009.
BAYSIDE FIRE STATION
ADDITION
The 95% design drawings are expected
to be received from the Architect
December 12. ARB review will be scheduled for early January. The process has taken longer than
anticipated and the project is currently scheduled to advertise for bids in February, construction to begin
in April with substantial completion in September '09.
KHS UNDERGROUND FUEL TANK REMOVAL AND REPLACEMENT
The new tank is in place and has been put into service. There remains a limited amount of fuel
contamination adjacent to the roadway that may require remediation. The Dept of Environmental
Conservation (DEC) has transferred project management responsibility from the Prevention and
Emergency Response Program (PERP) to the Contaminated Sites Program (CS).
Approximately 1,600 cubic yards of contaminated soil must be removed from stockpiles on site. The "on
island" burn plant that was anticipated to be put into service by the contractor this past summer has not
materialized so alternate methods of disposal or treatment of fuel contaminated soil are currently being
investigated.
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KODIAK ISLAND BOROUGH
ASSEMBLY WORK SESSION
Work Session of: / -N-03
Please print your name