2010-11-30 Work Session Kodiak Island Borough
Assembly Work Session
Tuesday, November 30, 2010, 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)
ITEMS FOR DISCUSSION
1. B Tracts Gravel Operation Update by Brechan Enterprises, Inc.
2. Code Enforcement Officer Presentation Regarding Garbage to the Assembly
3. Boards and Committees Reception Update
PUBLIC HEARING to Surplus and Sell the Same, Finding that a
Ordinance No. FY2011 -06 Amending the Public Need Does Not Exist for These
Kodiak Island Borough Code of Ordinances Title Properties, and Authorizing Land Sale Number
8 Health and Safety Chapter 8.30 Prohibition of Seventeen Terms and Conditions.
Smoking. Ordinance No. FY2011 -09 Determining the
Ordinance No. FY2011 -07 Amending Title 3 Negotiation of a Sale at Fair Market Value of
Revenue and Finance Chapter 3.40 Personal Tax Foreclosed Properties to the Federal
Property Tax. Government.
State of Alaska Alcoholic Beverage Control OTHER ITEMS
Board NEW Liquor License Application for *Approval of the Kodiak Island Borough
the Kodiak Raspberry Island Remote Lodge, Assembly 2011 Meeting Schedule.
Iron Creek Raspberry Island, Kodiak, AK. *Declaring a Seat on the Monashka Bay Road
(Applicant: Kodiak Raspberry Island Remote Service Area Board Vacant.
Lodge Inc.) Mayoral Appointments of Assembly Member
UNFINISHED BUSINESS — None. Representatives to Various Boards,
NEW BUSINESS Committees, and Commissions.
CONTRACTS — None. Confirmation of Mayoral /Assembly
RESOLUTIONS Appointments to Various Boards, Committees,
Resolution No. FY2011 -12 Identifying and Commissions.
Responsibility for the Maintenance and Recommendation for Appointment to Board
Operation of the Proposed Pedestrian and Bike Seats on the Providence Health System Kodiak
Pathway. Island Service Area Community Board.
Resolution No. FY2011 -13 Adopting a New State of Alaska Alcoholic Beverage Control
Kodiak Island Borough Urban Zoning Map. Board Request for Renewal of Liquor
ORDINANCES FOR INTRODUCTION License Applications Within the Kodiak Island
Ordinance No, FY2011 -08 Determining the Borough Jurisdiction
Disposition of Tax Foreclosed Properties from
2008 and Prior Tax Years, Establishing Intention
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLY MEMBERS COMMENTS
L TTQ X00 °
2 0 � T � o
Eoa o a
An Up a a From You New Co a 2 Enforcement Officer
Current Enforcement Issues
o Illegal dumping of bulky items and trash beside
dumpsters.
o Illegal dumping of bulky items and trash on KIS
property.
o Illegal dumping of construction waste at dumpsters.
• Residents illegally dumping trash at commercial
dumpsters.
o Junk and Abandoned vehicles.
Kodiak Island Borough
'; i ? �i Office of the Borough Clerk
r F
' - 710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9310 Fax (907) 486 -9391
DATE: 12/30/2010
MEMO TO: Mayor and Assembly
FROM: Nova M. Javier, MMC
RE: Boards and Commissions Reception Update
Every year the Assembly holds an annual reception in appreciation of the different volunteers
for Boards and Committees. I noticed in the recent years the drastic dwindling of attendees to
these receptions.
Reception Year Invited Members and guests, Cost per person Total Cost
including Borough staff (estimates)
2010 141 35 $55.63 $2,181.14
2009 114 47 $43.99 $2,067.69
2008 140 60 $33.71 $2,031.01
I need to get input from the Assembly whether it wishes to provide /suggest a different kind of
reception, leave it status quo, or discontinue.
Other alternatives that you may wish to consider:
• Mill Bay Coffee Shop After Business Hours Event
• Sit down Dinner at the Best Western Restaurant
• Reception at the Old Power House Restaurant
• After Hours Appetizers at Bay Side Fire Hall
• Luncheon at the KIB Chambers on a Regular Work Day
During agenda setting, Mayor Selby requested a count on the number of board, committee,
and commission members. That number will be 103 for the current year, give or take a few. If
we send out coffee cards at $20 each, that would be close to the budget we currently have for
this event.
KODIAK ISLAND BOROUGH
ASSEMBLY WORK SESSION
Work Session of: 1 /30 /?U(0
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Proposal for a Fisheries Consultant
to the
Kodiak Island Borough Assembly
Prepared by Terry Haines Consulting
724 Hillside Dr.
Kodiak, AK 99615
(907) 942-0365
yohaines.kodiak@gmail.com
Proposal for a Fisheries Consultant
to the Kodiak Island Borough Assembly
Overview: Nothing is more crucial to the economy of the Kodiak Island Borough than
the form and direction of fisheries management polices. However, the management
process, because of its complex and multifaceted nature, has proven difficult for the
Borough to engage.
The assignment of the Chamber of Commerce's Trevor Brown to monitor
NPFMC meetings was a step in the right direction, and he has done fine work.
Unfortunately, Mr. Brown's commitments as Director of the Chamber make it
impossible for him to completely focus his efforts during the periods surrounding
management meetings. In addition, sharing Mr. Brown's services with the City and the
Chamber further dilute his ability to speak on behalf of the Borough without potential
conflict.
Terry Haines Consulting would propose to amend this situation by attending
fisheries management meetings, panels and advisory committees in order to provide the
Assembly with complete and timely reports in advance of management decisions.
Purpose for Fisheries Consultant:
1) Enabling Timely and Relevant Inputs As Management Policies Evolve:
Stop sending someone out to play shortstop after the batter has hit the ball.
The contractor's report would center on a complete list of proposed actions, prioritized
by: 1) timeframe, and 2) potential impact to the Borough.
In addition to attending North Pacific Fisheries Management Council
proceedings the reporter will strive for balance by monitoring testimony at the advisory
panel level and with active outreach to stakeholders. The resulting report will frame the
proposed actions with an objective consideration of stakeholder standpoints. A draft
report will be presented to the KFAC for additional input from local stakeholders before
final presentation to the Assembly.
2) Catching Up With Catch Shares:
NOAA is pushing Catch Shares hard.
Given consistent, timely and relevant engagement on the part of the Borough,
Catch Shares programs developed for the region could include provisions to protect and
even enhance the Borough's economy.
The price of neglect could include market restrictions, loss of entry level
opportunity, excessive fleet consolidation and capital flight through absentee ownership.
As home to one of the most vibrant fishing economies in the world, the Kodiak
Island Borough has a unique opportunity, and responsibility, to help design Catch Shares
programs that encourage both healthy stocks and healthy communities.
Qualifications, Terry Haines Consulting:
1) Unique Requirements:
This is not a job for everyone.
The ability to communicate effectively with all participants will determine
the relative success of the Borough's fisheries consultant. Over the course of eleven
years attending NPFMC meetings I have developed positive relationships with the
people and institutions that constitute the fisheries management process. I have found
that discussions that focus on solutions and common ground are only possible when you
listen, and treat others with respect.
Equally important is a positive working relationship with regulators and managers
and the ability to understand the process. A decade of immersion has left me with both.
Twenty eight years as a local commercial fisherman have blessed me with a store
of practical knowledge about the industry and a wealth of personal relationships, both of
which will serve me well in this capacity.
Finally three years on the Kodiak City Council, two of them serving on the Board
of Directors of the Southwest Alaska Municipal Conference have left me with a broad
perspective, and an appreciation of the constraints and responsibilities of municipal
government.
Envisioned within the scope of the work:
1. Full attendance of all relevant meetings, including advisory panels, committees
and staff tasking.
2. A "Report to the Assembly" for every meeting attended, with issues prioritized
by timeline and potential impact to the Borough, and updates posted as needed.
3. Robust "hallway" engagement of participants to assess all facets of proposed
management changes.
4. Testimony made by the contractor on behalf of the Borough must adhere
carefully to the specific instructions of the Borough Assembly.
Proposed format for reports:
Reports must be easy to read and easy to use.
1. Summary, including list of proposed actions prioritized by impact and timeline
2. Section on each proposed action, including all options and alternatives and
describing conflicts and common ground among stakeholders and information
garnered from regulators and their staff.
3. Index and notes section listing sources, contacts and resources.
4. Draft submitted to KFAC and amended as needed to include local input.
5. Final report submitted to Assembly in time to prepare comment, if desired, for
the next fisheries management meeting.
5
North Pacific Fishery Management Council
201st Plenary Session — December 6 -14, 2010
Anchorage, Alaska — Hilton Hotel
Fax: (907) 271 -2817 Tel: (907) 271 -2809
1 Public Comment of Stephen jaufen, Groundswell Fisheries Movement
Submitted by Fax, November 30, 2010
Agenda C- 2(c.): Receive Report on BSAI Crab Rationalization 5 -Year Review
Commerce Secretary Locke, Chairman Olson & NPFMC members:
Please find attached three pages of additional Tables that will aid Council members and staff in
reviewing the Captain and Crew (C &C) Compensation issues. as part of the 5 -Year Review. I
will hopefully be submitting additional Public Comment on the record during the session.
Let it suffice for now to say that if the C &C component's historical share was 35% before CR
privatization, then on the basis of a $1.1 billion initial market value, there was a takings from the
C &C of (35% less 3 %, times $1.1B) approximately $350 million. Since then, another $100
million, totaling a distributive income shift of over $450 million, to date. This has huge negative
effects on U.S. tax coffers, regional spending and multipliers, community household incomes,
and more.
This Council has knowingly and willingly participated in:
• Failures to adhere to National Standards of "fair and equitable" distributions of
allocations, the award of excessive shares, and other violations of law.
• Subsequent active denial of any corrective Motion (or second) to address C &C losses.
• Failures to prosecute False Testimonies on the record, and to address known Coercion of
C &C by IFQ holders.
• Negative Conflicts of Interest in the context of Regulatory Capture.
• Failure to put on record the expensive ethnographic crab crew study (Felthoven et al).
• Failures to maximize the net national (and state) benefits from the Crab Fisheries, by
failing to ensure full transparency and accountability, as well as exploration of Abusive
Transfer Pricing that allows foreign - owners to operate profitless 'hollow subsidiaries'
within the Alaska geographical region.
• Failure to contain Leases from being taken off -the -top of trip settlements, before the
computation of "adjusted gross revenues - and failure to consider /adhere to the maritime
laws regarding Lay Share rights of C &C, despite clear advice that such United States
Codes should be taken into consideration just as NEPA and Executive Orders are, when
formulating allocation -bent programs.
• Giving credence to IFQ - shareholders' creations of "Astroturf' fake grassroots groups.
• Among other wrongs...
Page 2 – S.Taufen PC — C -2(c.) Crab Ratz 5 -yr. Review
If the Council had to adhere to MSAR (reauthorized) today, it would still have the problem of the
unconstitutionality of the Alaska region not having a 2 /3rds referenda process, as compared to
the New England and Gulf states. But you've already done a great job at violating the Equality
and Commerce clauses, and restraining trade.
The current report is highly deficient as to the types of statistical information. The attached
tables illustrate only a few examples of how the data could have been used to do more
meaningful analysis that should guide your decision making to reallocate shares to the C &C
component. One means of doing that would be to set aside a block of quota for the public trust,
under the State of Alaska – who could then lease it out on the provision that trip settlements
adhere to Lay Share tenets and legal case history, and all "rents" are taken off after the
computation of "adjusted gross revenues" – including a severance type rent for the State. But,
you will not address any solutions, to date, let alone an innovative public trust.
Catch Shares are a carefully organized and executed neurosis, an outrageous hypocrisy on the
National Standards of 'fair and equitable' distributions. The Council has repeatedly
demonstrated adherence to this corporate- backed neurosis, and apparently does not care about
the lack of credibility it shows, because this hive mentality is shared by NOAA and its national
policy to institute more privatizations (catch share programs). Someday this assault on common
senses must stop for common use resources, or our commercial fisheries and the family
fishermen will be ruined forever.
It is time to make serious changes to the CR program. Thank you.
Stephen Taufen
P.O. Box 714
Kodiak, AK 99615
staufenaseanet.com
Attached – 3 pages of tables.
Bristol Bay Red King Crab - post ratz
Percentage Drop in Capt &Crew pay on average between quartiles:
Mean Lbs.
Harvested per Mean pay to single Mean C &C Pay per
2008 Vessel crewmember % of gross to captain /crew Pound Harvested
3d Quartile 281,259 $ 45,426.00 21.80% $ 0.1615
4th Quartile 436,847 $ 39,414.00 15.60% $ 0.0902
-13.2% $ (0.0713)
Equals: Percentage Drop in C &C /Harvest Lb. - 44.1%
Mean Lbs.
Harvested per Mean pay to single Mean C &C Pay per
2009 Vessel crewmember % of gross to captain /crew Pound Harvested
3d Quartile 249,735 $ 31,528.00 19.70% $ 0.1262
4th Quartile 358,570 $ 29,137.00 14.70% $ 0.0813
-7.6% $ (0.0450)
Equals: Percentage Drop in C &C /Harvest Lb. - 35.6%
•
Bristol Bay Red King Crab Ratz: 14,000,000 avg. harvest lbs.
Historical
2004 Captain & Crew % of Adjusted Gross 35.9% Participation Ratio
Less: Captains at 3% -3.0% C- Shares (approx.)
Net Property Taking of Capt &Crew Historical Shares - 32.9% Decline of IFQ
IF: IFQ Market Value /Share Set at $22.50 $ 315,000,000
THEN: IFQ Takings from C&C = $ (103,635,000)
Plus: Annual Takings (est. avg.) $ (12,000,000)
Times: 5 years of program to date 5 $ (60,000,000)
$ (163,635,000)
Denied pay to C &C
Averaged for # vessels fishing - 69 $ (2,371,522) per vessel
Bristol Bay Opillo Crab Ratz: 43,700,000 avg. harvest lbs.
Historical
2005 Captain & Crew % of Adjusted Gross 34.6% Participation Ratio
Less: Captains at 3% -3.0% C- Shares (approx.)
Net Property Taking of Capt &Crew Historical Shares -31.6% Decline of IFQ
IF: IFQ Market Value /Share Set at $8.00 $ 349,600,000
THEN: IFQ Takings from C &C = $ (110,473,600) In 2010 Lbs. level
Plus: Annual Takings (est. avg.)* $ (8,470,000)
Times: 5 years of program to date 5 $ (42,350,000)
$ (152,823,600)
Denied pay to C &C
Averaged for # vessels fishing - 67 $ (2,280,949) per vessel
COMBINED TAKINGS FROM C &C to -date, BSK & BSS $ (316,458,600)
•
•
Bristol Bay Red King Crab - pre- & post -ratz BSK Red
Per. Lb. Harvested -and- Percentage Drop in Capt &Crew pay as % of Gross
2004
Cf Adj. No. Boats Capt. & Price per 2004 Capt. & Capt. & Crew's Est. 5/Lb.
O NB: Table shows 55 Crew Pay Mean Lbs. Est. Total Lbs. in Catch Lb. Total ex- vessel Proportion of Total
O boats per Quartile per Quartile - Harvested Quartile (COAR ex- Crew equiv. Value Est. Ex- Vessel Value Harvested paid
N Approx. % of vessel) $ /Lb. (est.) to Capt. & Crew
Gross
1st Quartile 52 35.20% 31,614 1,643,928 $ 4.69 $ 1.65 $ 7,710,022 $ 2,713,928 $ 1.6509
2d Quartile 52 34.50% 53,948 2,805,296 $ 4.69 $ 1.62 $ 13,156,838 $ 4,539,109 $ 1.6181
3d Quartile 52 36.70% 71,054 3,694,808 $ 4.69 $ 1.72 $ 17,328,650 $ 6,359,614 $ 1.7212
4th Quartile 52 36.30% 110,466 5,744,232 $ 4.69 $ 1.70 $ 26,940,448 $ 9,779,383 $ 1.7025
Calculated total pounds involved - -> 13,888,264 $ 4.69 $ 65,135,958 $ 23,392,034 $ 1.6843
Actual Catch - in pounds 13,889,047 100.01% I 3519 %!i :LjYJ
55
55.003
Math Note: Adjusted No. of Boats from 55 down to 52 in order to make .
the total pounds add up to the actual harvest, when using the average
i (mean) lbs. harvested in each quartile.
2009
Price per Capt. & Crew's
t31 Adj. No. Boats Capt. & 2009 Capt. & Est. $ /Lb.
O NB: Table shows 16/17 Mean Lbs. Est. Total Lbs. in Catch Lb. Total ex- vessel Proportion of Total
per Quartile - Crew Pay Crew equiv. Harvested paid
O boats per Quartile Harvested Quartile (COAR ex- Value Est. Ex- Vessel Value
N Approx. % of $ /Lb. to Capt. & Crew
Gross vessel) (est.)
1st Quartile 13 27.70% 92,251 1,199,263 $ 4.67 $ 1.29 $ 5,600,558 $ 1,551,355 $ 1.2936
2d Quartile 14 20.00% 184,818 2,587,452 $ 4.67 $ 0.93 $ 12,083,401 $ 2,416,680 $ 0.9340
3d Quartile 13 19.70% 300,835 3,910,855 $ 4.67 $ 0.92 $ 18,263,693 $ 3,597,947 $ 0.9200
4th Quartile 13 14.70% 512,418 6,661,434 $ 4.67 $ 0.69 $ 31,108,897 $ 4,573,008 $ 0.6865
Calculated total pounds involved --> 14,359,004 $ 4.67 $ 67,056,549 $ 12,138,990 $ 0.8454
Actual Catch - in pounds 14,337,872 99.85% I ':x281 % 44
16.5
16.476 Reduction in C &C Portion: Total $ reduction Drop Per Lbs
I Math Note: Adjusted No. of Boats from 16/17 down to 13/14 in order
I to make the total pounds add up to the actual harvest, when using the $ (11,253,044) $ (0.8389)
i average (mean) lbs. harvested in each quartile. 1. .,:
% Drop on per Lb. basis to C &C => - 49.8%
• Prepared by Stephen Taufen 11/30/2010 Page 1
Bristol Bay Opilio Crab - pre- & post -ratz BSS - Opilio
Per. Lb. Harvested -and- Percentage Drop in Capt &Crew pay as % of Gross
2005 Price per Capt. & Crew's
111 Adj. No. Boats 2005 Capt. & Est. S/Lb.
p NB: Table shows 36/37 Capt. & Mean Lbs. Est. Total Lbs. in Catch Lb. Total ex- vessel Proportion of Total
0
per Quartile - Crew equiv. Harvested paid
boats er quartile Crew Pay Harvested Quartile
N Approx P (COAR ex- Value Est. Ex- Vessel Value
% of vessel) $ /Lb. (est.) to Capt. & Crew
Gross
1st Quartile 32 32.40% 93,280 2,984,960 $ 1.81 $ 0.59 $ 5,402,778 $ 1,750,500 $ 0.5864
2d Quartile 33 36.10% 134,285 4,431,405 $ 1.81 $ 0.65 $ 8,020,843 $ 2,895,524 $ 0.6534
3d Quartile 33 35.80% 171,446 5,657,718 $ 1.81 5 0.65 $ 10,240,470 $ 3,666,088 $ 0.6480
4th Quartile 33 34.00% 297,069 9,803,277 $ 1.81 $ 0.62 $ 17,743,931 $ 6,032,937 5 0.6154
Calculated total pounds involved - -> 22,877,360 $ 1.81 $ 41,408,022 $ 14,345,049 $ 0.6270
•
Actual Catch - in pounds 22,655,777 99.03% I 1?34:6 % ;..
33
32.680
I Math Note: Adjusted No. of Boats from 36/37 down to 32/33 in order to '.
I make the total pounds add up to the actual harvest, when using the
average (mean) lbs. harvested in each quartile
C 2009/10 Price per Capt. & Crew's
Adj. No. Boats 2009/10 Est. $ /Lb.
NB: Table shows 17/18 Capt. & Mean Lbs. Est. Total Lbs. in Catch Lb. Total ex- vessel Proportion of Total
cr, boats per Quartile per Quartile - Crew Pay Value Est. Ex-Vessel Capt. & Crew Harvested paid
p Approx. % of y Harvested Quartile (COAR equiv. $ /Lb. Value
to Capt. & Crew
N Gross
1st Quartile 16 27.80% 300,835 4,813,360 $ 1.45 $ 0.40 $ 6,979,372 $ 1,940,265 $ 0.4031
2d Quartile 15 24.40% 512,418 7,686,270 $ 1.45 $ 0.35 $ 11,145,092 $ 2,719,402 $ 0.3538
3d Quartile 15 21.00% 736,305 11,044,575 $ 1.45 $ 0.30 $ 16,014,634 $ 3,363,073 $ 0.3045
4th Quartile 15 19.50% 1,311,810 19,677,150 $ 1.45 $ 0.28 $ 28,531,868 $ 5,563,714 $ 0.2828 •
Calculated total pounds involved - -> 43,221,355 $ 1.45 $ 62,670,965 $ 13,586,455 $ 0.3143
Actual Catch - in pounds 43,193,971 99.94% , tin fji(21':7 %j''??';. I
Volume adjustment 1.91 15.5 If adj. to low 2004 harvest = $ 7,126,265
- - 15.490
I Math Note: Adjusted No. of Boats from 17/18 down to 15/16 in order to ! --
make the total pounds add up to the actual harvest, when using the Reduction in C &C Portion: Total $ reduction Drop Per Lb.
average (mean) lbs. harvested in each quartile. $ (758,594) $ (0.3127)
I Total Drop adj. for Volume = $ (7,218,784) $ (0.319)
s i{Ca u
% Drop on per Lb. basis to C &C a -49.9%
Prepared by Stephen Taufen 11/30/2010. Page 1
[PNCIAC] Pacific Northwest Crab Industry Advisory Committee (2006). Minutes from May 23 meeting.
PO Box 969, Edmonds, WA. May 2006.
Sackton, John (2007a) "2007 Market Analyst Report on Red King Crab ", August 25, 2007.
Sackton, John (2007b) "Golden King Crab Price Formula Arbitrator and Market Report", June 25, 2007.
Sackton, John (2007c) "Snow Crab and Bairdi Market Report", August 25, 2007.
Sackton, John (2010a) "Non- Binding Price Formula for red king crab Opilio, Bairdi and St. Matthews
blue king crab ", August 25, 2010.
Sackton, John (20I0b) "Golden King Crab Price Formula Arbitrator and Market Report", June 25, 2010.
Turnock, B., and L. Rugolo (2007). Stock assessment of eastern Bering Sea snow crab. Appendix A,
Stock Assessment and Fishery Evaluation Report for the King and Tanner Crab Fisheries of the
Bering•Sea and Aleutian Islands Regions. North Pacific Fishery Management Council.
Anchorage, AK. September 2007.
16 LIST OF PREPARERS
Mark Fina Diana Evans John McCracken Jeannie Heltzel
Glenn Merrill Michael Fey Don Schug, Northern Economics
17 PERSONS CONSULTED
Keith Colburn Joe Plesha Steve Minor Edward Poulsen
Gretchen Harrington Einar Sorvik John lani Lenny Herzog
Arni Thomson Linda Kozak Bing Henkel Greg White
Joe Sullivan John Sackton Jake Jacobsen Don Giles
Terry Schaff Ken Dorris Louie Lowenberg Forrest Bowers
Krista Milani Wayne Donaldson Doug Pengilly Stefanie Moreland
Herman Savikko Dave Hambleton Kevin Kaldestad Jim Stone
Tyson Kade Jeanette Alas Tom Suryan Spencer Bronson
Lance Farr Rob Rogers Elizabeth Wiley Brett Reasor
Five -year review of Crab Rationalization 147
Program for BSAI crab fisheries — December 2010