06/03/2010 RMA regular meeting of the Kodiak Island Borough Assembly was held on Thursday, June 3, 2010,
in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The
meeting was called to order at 7:30 p.m.
KODIAK ISLAND BOROUGH
Assembly Regular Meeting
June 3, 2010
The invocation was given by Captain John Quinn of the Salvation Army. Mayor Selby led the
Pledge of Allegiance.
Present were Mayor Jerome Selby, Assembly members Pat Branson, Jerrol Friend, Judy Fulp,
Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were
Manager Rick Gifford, Community Development Department Director Bud Cassidy, Engineering
and Facilities Director Woody Koning, Finance Director Karl Short, Clerk Nova Javier, and
Assistant Clerk Jessica Kilborn.
APPROVAL OF AGENDA
BRANSON moved to approve the agenda as submitted.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF MINUTES
A. Regular Meeting minutes of April 1, 2010.
KAPLAN moved to approve the regular meeting minutes of April 15, 2010, as submitted.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
AWARDS AND PRESENTATIONS
Mayor Selby presented a plaque of recognition and appreciation to Aida Sallows, widow of
Steve Kreber, for his sixteen years of dedicated service to the Borough.
CITIZENS' COMMENTS
Nick Troxell spoke on Contract No. FY2010 -10.
Wilma Cox Eric Engvall Switquard Duesterloh Mary Guilas - Hawver Ellen Ross Erin
Harrington Jocene Warneke Alli Borton, Ben Millstein Donna Jones, Val Miller Dave
Shuckmann, Deb Holden - Engvall Zoya Saltonstall, Heather Preece Cheryl Boehland Cliff
Ford, Daisy West and Ken Reinke spoke in support of Contract No. FY2010 -10.
Mary Carter- Campbell spoke on the Math Recovery Program at Kodiak High School.
Kodiak Island Borough Assembly Minutes
June 3, 2010 Page 801
COMMITTEE REPORTS
Assembly member Friend reported that the Architectural /Engineering Review Board met and
reviewed three construction projects that were in progress.
PUBLIC HEARING
1. Ordinance No. FY2010 -01C Amending Ordinance No. 2010 -01 Fiscal Year 2010 Budget by
Amending Budgets to Account for Various Revenues that are Over Budget, Provide for
Additional Expenditures, Budget New Projects, Accept Grants, and Move Funds Between
Projects.
KAPLAN moved to adopt Ordinance No. FY2010 -01C.
This ordinance:
• Reduced the budget for real and personal property taxes by $31,000 in the General
Fund budget.
• Increased the General Fund Licenses and Permits budget by $20,000.
• Reduced the General Fund Federal Shared Revenue budget by $97,837.
• Reduced the General Fund Off-Shore Raw Fish Tax revenue budget by $32,030.
• Increased the General Fund Cruise Ship revenue budget by $25,500.
• Increased the General Fund interest earnings revenue budget by $50,000.
• Increased the anticipated use of the General Fund Balance to $456,397.
• Increased the General Fund Engineering /Facilities Department budget by $60,000.
• Increased the General Fund Animal Control Department budget by $1,625.
• Increased the General Fund transfers out by $329,405. ($29,405 to debt service,
$250,000 for a code update, and $50,000 for a road system trails plan.)
• Moved $95,000 from the General Fund to Fund 450 — Capital Projects to cover the
expenses of a failed oil tank at the Chiniak School.
• Increased the Land Sale Fund budget $73,298 to cover costs associated with the 2009
flood.
• The Building and Grounds fund received an additional $11,070 from the school district
for building rent.
• The Building and Grounds fund transferred $95,000 to Capital Projects fund 450 to
remediate the Chiniak School oil spill.
• Increased the Womens Bay Road Service Area budget $173,405 to cover costs
associated with the 2009 flood.
• Increased the Monashka Bay Road Service Area budget $43,816 to cover costs
associated with the 2009 flood.
• Reduced the transfer from the Facilities Fund to the Debt Service Fund by $29,405.
• Moved available balances in some projects in Funds 410 (Borough Capital Projects),
420 (GO Bond Projects), 430 (State Capital Grants), and 450 (Capital Projects) to other
projects in Funds 410,420, 430, and 450.
• Accepted a $475,000 HUD grant and authorized the Manager to execute.
• Accepted a $8,872 Rural Firefighters Association grant and authorized the Manager to
execute.
• Accepted a $4,144 Volunteer Firefighters Association grant and authorized the Manager
to execute.
• Accepted a $90,000 Community Development block grant for Care Center design
(project 09010) and authorized the Manager to execute.
BRANSON moved to amend Ordinance No. FY2010 -01C by substitution.
Kodiak Island Borough Assembly Minutes
June 3, 2010 Page 802
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Branson, Friend,
Fulp, Jeffrey, Kaplan, Lynch, and Stutes.
Mayor Selby opened the public hearing. Seeing and hearing none, Mayor Selby closed the
public hearing.
Assembly members Jeffrey and Lynch noted that they served on the Kodiak Maritime Museum
board. Mayor Selby ruled that there was no conflict of interest for either Assembly member.
ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend,
Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Branson.
2. Ordinance No. FY2011 -01 Levying Taxes on All Taxable Real and Personal Property Within
the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for
the Fiscal year Commencing on the First Day of July 2010 and Ending on the Thirtieth Day
of June 2011 (Fiscal Year 2011 Budget).
BRANSON moved to adopt Ordinance No. FY2011 -01.
This ordinance included funds to be spent in the General Fund, Special Revenue Funds, Debt
Service Funds, Capital Project Funds, and Enterprise Funds. This ordinance would also levy a
tax on the real and personal property within the Borough as well as upon natural resources
extracted and removed from the Borough. Manager Gifford presented amendments that had
been made to the budget from the previous work session.
BRANSON moved to amend Ordinance No. FY2011 -01 by substitution.
ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan,
Lynch, Stutes, Branson, and Friend.
Mayor Selby opened the public hearing.
Kodiak Island Borough School District Superintendent Stewart McDonald spoke on Ordinance
No. FY2011 -01.
Mayor Selby closed the public hearing.
JEFFREY moved to amend Ordinance FY2011 -01 by deleting the two additional positions from
the budget.
FULP moved to further amend Ordinance FY2011 -01 by changing the Administrative Assistant
position to a part-time, non -union position with full benefits.
ROLL CALL VOTE ON MOTION TO AMEND THE ADMINISTRATIVE ASSISTANT POSITION
FAILED SIX TO ONE: Jeffrey, Kaplan, Lynch, Stutes, Branson, and Friend (Noes); Fulp (Aye).
ROLL CALL VOTE ON MOTION TO AMEND FAILED FIVE TO TWO: Kaplan, Lynch, Branson,
Friend, and Fulp (Noes); Jeffrey and Stutes (Ayes).
Kodiak Island Borough Assembly Minutes
June 3, 2010 Page 803
ROLL CALL VOTE ON MAIN MOTION CARRIED SIX TO ONE: Lynch, Branson, Friend, Fulp,
Jeffrey, and Kaplan (Ayes); Stutes (No).
BOROUGH MANAGER'S REPORT
Manager Gifford reported on the following:
• Governor Parnell announced cuts to the budget. ADF &G Facility will go before the voters
as a bond proposition at the General Election on November 2, 2010.
• Thanked the Assembly for its support of the budget.
MESSAGES FROM THE BOROUGH MAYOR
Mayor Selby reported on his attendance at the National Association of Counties Western
Interstate Region Conference.
UNFINISHED BUSINESS
None.
NEW BUSINESS
Contracts
1. Contract No. FY2010 -10 Extension of the Recycling Contract with Threshold Services Inc.
BRANSON moved to authorize the manager to execute the optional one -year extension for
Contract No. FY2010 -10 with Threshold Services, Inc. of Kodiak, Alaska for a time and
materials contract estimated to be $250,000.
The Kodiak Island Borough's landfill enterprise fund was financed through user fees; these
revenues covered costs for the landfill operation, compliance, disposal costs, and community
recycling efforts. Threshold Services, Inc., a private non - profit entity, maintained a receiving,
handling, processing, storage, and marketing operation for recyclable materials in Kodiak for
shipment to markets off - island. Threshold achieved this through its goal to provide work and
training for persons with disabilities or who were chronically not employable. The Borough's
recyclable material included those items brought by the public to Threshold's location on Von
Scheele, as well as the material picked up by Threshold at various business locations, and the
community cardboard dumpster deliveries paid for through the Borough's contract with Alaska
Waste.
The contract with Threshold was based on the amount of recyclables shipped off island (similar
to a time and materials contract) and it was estimated that the contract would total $250,000
which was what had been budgeted for in the proposed FY2011 budget.
Assembly member Lynch disclosed that she sat as the president of Threshold's Board of
Directors. Mayor Selby ruled that Assembly member Lynch did not have a personal financial
interest and was allowed to vote on the contract.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Friend, Fulp,
Jeffrey, Kaplan, and Lynch.
Kodiak Island Borough Assembly Minutes
June 3, 2010 Page 804
Resolutions
1. Resolution No. FY2011 -02 Reestablishing the Fees of the Kodiak Island Borough.
JEFFREY moved to adopt Resolution No. FY2011 -02.
Prudent financial management dictated that an organization review its fees on at least an
annual basis. KIBC 3.10.190 required that not less than on the beginning of every calendar
year, the finance director would prepare a list of all fees for services charged by the various
departments of Borough government. The list was submitted to the departments involved for
comments concerning the fees and a recommendation as to whether or not the fee or fees
should be raised, lowered, or remain the same. Finance Director Short submitted a report of his
findings, including the department comments and recommendations, to the Manager for
presentation to the Assembly. Staff compiled a list of current fees and recommended several
changes to the fee resolution; most of these changes were in the Solid Waste Collection and
Disposal Section.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Friend, Fulp, Jeffrey,
Kaplan, Lynch, and Stutes.
Ordinances for Introduction
None.
Other Items
None.
EXECUTIVE SESSION
A. Review of the Legal Opinion Regarding Garbage Lien.
JEFFREY moved to convene into executive session to review the legal opinion regarding the
garbage lien which qualifies for executive session as potential or pending litigation to which the
Borough may become or is a party.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan,
Lynch, Stutes, and Branson.
Mayor Selby recessed the regular meeting and convened the executive session at 9:30 p.m.
Upon returning from the executive session, Mayor Selby reconvened the regular meeting at
10:25 p.m. and announced no action was to be taken as a result of the executive session.
CITIZENS' COMMENTS
None.
ASSEMBLY MEMBER COMMENTS
Assembly member Stutes stated her reason for voting against the Ordinance No. FY2011 -01
was due to the two new positions.
Assembly member Kaplan thanked Finance Director Short and Borough staff for their hard work
on the budget.
Kodiak Island Borough Assembly Minutes
June 3, 2010 Page 805
Assembly member Jeffrey noted there was good discussion on the FY2011 budget.
Assembly member Fulp thanked Jamin Law Office for its hard work throughout the years.
Assembly member Branson noted she looked forward to FY2011.
Announcements
Mayor Selby announced that the next Assembly work session would be held on Thursday, June
10, 2010, at 7:30 p.m. in the Borough Conference Room. The next regular meeting was
scheduled on Thursday, June 17, 2010, at 7:30 p.m. in the Borough Assembly Chambers.
The Assembly will hold a special meeting on Thursday, June 10, 2010, at 7:30 p.m. in the
Borough Conference Room.
ADJOURNMENT
FRIEND moved to adjourn the meeting.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch,
Stutes, Branson, and Friend.
The meeting adjourned at 10:30 p.m.
ATTEST:
Nova M Javier, MC, Borough Clerk
June 3, 2010
KODIAK ISLAND BOROUGH
Jerome M. Selby, Mayor
Approved: July 15, 2010
Kodiak Island Borough Assembly Minutes
Page 806