01/06/2011 Regular Meeting KODIAK ISLAND BOROUGH
Assembly Regular Meeting
January 6, 2011
A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, January 6,
2011, 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.
The invocation was given by Mr. Ron Painter. Deputy Presiding Officer Friend led the Pledge of
Allegiance.
Present were Deputy Presiding Officer Friend, Assembly members Carol Austerman, Judy Fulp,
Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were
Administrative Official Bud Cassidy, Finance Director Karl Short, Borough Clerk Nova Javier,
and Deputy Clerk Marylynn McFarland.
KAPLAN moved to excuse Mayor Selby who was absent due to personal reasons.
VOICE VOTE ON MOTION CARRIED UNANIMOUSLY.
APPROVAL OF AGENDA AND CONSENT AGENDA
AUSTERMAN moved to approve the agenda and consent agenda.
JEFFREY moved to amend the agenda by adding Executive Session Item 14.A Review of an
Order Denying a Litigant's Motion for Partial Summary Judgment and Granting Borough's
Motion for Summary Judgment.
ROLL CALL VOTE ON MOTION TO AMEND THE AGENDA CARRIED UNANIMOUSLY:
Austerman, Friend, Fulp, Jeffrey, Kaplan, Lynch, and Stutes.
ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Friend,
Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Austerman.
APPROVAL OF MINUTES
A. Regular Meeting Minutes of December 2, 2010, were approved under the consent agenda.
AWARDS AND PRESENTATIONS
Deputy Presiding Officer Friend presented the Student of the Month Award for December 2010
to Jayse Taan, a senior at Kodiak High School.
Dr. Robert Foy, NOAH Fisheries Laboratory Director gave a presentation on Ocean Acidification
and Coastal Kodiak.
CITIZENS' COMMENTS
Richard Walker addressed the Assembly on suggested improvements to parks in Kodiak
specifically addressing the six -lane track and resurfacing of Baranof field.
COMMITTEE REPORTS
Matt Jamin gave an update on the financial status between Exxon and the Kodiak Island
Borough. He also reported that the issue of Exxon documents being retained under protective
order would be resolved within the next month.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 868
PUBLIC HEARING
A. Ordinance No. FY2011 -08 Determining the Disposition of Tax Foreclosed Properties
from 2008 and Prior Tax Years, Establishing Intention to Surplus and Sell the Same,
Finding that a Public Need Does not Exist for These Properties, and Authorizing Land
Sale Number Seventeen Terms and Conditions.
JEFFREY moved to adopt Ordinance No. FY2011 -08.
The Kodiak Island Borough acquired real properties as a result of the tax foreclosure procedure
from 2008 and prior tax years. Staff followed AS 29.45.460 Disposition and Sale of Foreclosed
Property. The Planning and Zoning Commission reviewed the list of 2008 and prior tax years for
foreclosed properties as required by KIBC 18.10.030, conducted a public hearing on the
disposition of the subject parcels, and made a formal recommendation to the Assembly.
The Manager recommended that the tax - foreclosed parcels be declared not to be of "public
need" and be offered at a future Borough land sale. Staff recommended a sealed bid auction be
conducted in Spring 2011. The bidders would be required to enclose a 10% deposit based on
the minimum bid amount shown in the bid packet. The remaining balance would be required to
be paid within thirty days. Manager Gifford explained that the dates of the bid opening had
changed due to the cancellation of the Assembly meeting of December 16, 2010, and a future
amendment would be submitted for Assembly approval.
Deputy Presiding Officer Friend opened the public hearing. Seeing and hearing none, Deputy
Presiding Officer Friend closed the public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch,
Stutes, Austerman, and Friend.
B. Ordinance No. FY2011 -09 Determining the Negotiation of a Sale at Fair Market Value
of Tax Foreclosed Properties to the Federal Government.
KAPLAN moved to adopt Ordinance No. FY2011 -09.
Certain real property was deeded to the Borough through tax foreclosure proceedings pursuant
to AS 29.45.290 for delinquent payment of taxes for 2006 and previous years. The Planning and
Zoning Commission reviewed the parcels as required by KIBC 18.10.030 at a public hearing in
June 2008. They were declared surplus to "public need" by the Assembly (Ordinance No.
FY2009 -05) and determined to be available for future land sale.
The United Fish and Wildlife Service (USFWS) expressed an interest in purchasing parcel T30S
R28W SM, Tax Lot 1811 Zachar Bay and parcel T31S R28W SM, Tax Lot 2903 Amook Bay at
fair market value from the Borough. Each of these parcels was approximately ten acres.ln a
letter dated September 3, 2010, USFWS tendered a fair market value offer of $18,000 for parcel
T30S R28W TL 1811 Zachar Bay and a fair market value offer of $15,000 for parcel T31S 28W
TL 2903 Amook Bay. Both of these offers were based on an approved appraisal, and confirmed
as fair market value by the Borough Assessor.
The property was once part of the Kodiak National Wildlife Refuge (KNWR) and the
reacquisition by USFWS promoted efficient management for public recreation and refuge for
wildlife consistent with the goals and objectives of the comprehensive plan.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 869
Deputy Presiding Officer Friend opened the public hearing. Seeing and hearing none, Deputy
Presiding Officer Friend closed the public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes,
Austerman, Friend, and Fulp.
C. State of Alaska Alcoholic Beverage Control Board Liquor License Application for the
Transfer of Ownership (Stock Transfer Only) for the Mecca Lounge, 302 W. Marine
Way,Kodiak, AK. (Applicant: Mecca Inc.)
STUTES moved to voice non - protest to the State of Alaska Alcoholic Beverage Control Board
Request for the Transfer of Ownership (Stock Transfer Only) for the Mecca Lounge, 302 W.
Marine Way, Kodiak, AK. (Applicant: Mecca Inc.)
The Clerk's office followed KIBC 5.01.030 New License and Transfer Procedure. After
investigation, it was determined that the Borough had no interest that could be protected by
protesting the application. One hundred seventy -two public hearing notices were sent out; one
non - objection notice was received and was provided to the Assembly.
Deputy Presiding Officer Friend opened the public hearing. Seeing and hearing none, Deputy
Presiding Officer Friend closed the public hearing.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes,
Austerman, Friend, Fulp, and Jeffrey.
BOROUGH MANAGER'S REPORT
Administrative Official Cassidy reported that Manager Gifford was on vacation and would be
returning January 12, 2011.
MESSAGES FROM THE BOROUGH MAYOR
None.
UNFINISHED BUSINESS
None.
NEW BUSINESS
Contracts
1. Contract No. FY2011 -20 Civil Engineering Consulting Services.
STUTES moved to authorize the manager to execute Contract No. FY2011 -20 with Lounsbury
& Associates, Inc. of Anchorage, Alaska for the Civil Engineering Consulting Term Contract in
an undetermined amount and for a term of three years with the option to extend for two
additional years.
The Kodiak Island Borough was in need of various professional services related to civil
engineering. On August 6, 2010, the Kodiak Island Borough solicited for proposals to provide
civil engineering and consulting services for a term of three years with the option to extend for
two additional one year periods. By September 2, 2010, nine proposals were received and the
solicitation was closed as advertised. Four shortlisted firms were presented to the evaluation
team resulting in the selection of Lounsbury & Associates, Inc.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 870
The scope of work would include assistance with planning, design, and estimating for projects
such as road improvements, drainage, trails, subdivision reviews, fish - passage road crossings,
traffic studies, and land surveys.
Work would be authorized as a task order based on cost estimates and paid on a time
expenses basis in accordance with the agreed fee schedule.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend,
Fulp, Jeffrey, and Kaplan.
Resolutions
1. Resolution No. FY2011 -14 Adopting a Federal Capital Improvement Program for
Federal Fiscal Year 2012.
KAPLAN moved to adopt Resolution No. FY2011 -14.
The resolution designated the Borough's top five federal legislative capital improvement project
priorities for federal fiscal year 2012. They were the projects that the Borough forwarded to its
congressional delegation in hopes of having the federal government provide part or all of the
funding needed to complete the projects.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Austerman, Friend, Fulp,
Jeffrey, Kaplan, and Lynch.
2. Resolution No. FY2011 -15 Certifying the FY2011 Shared Fisheries Business Tax Program
Application To Be True and Correct.
JEFFREY moved to adopt Resolution No. FY2011 -15.
AS 29.60.450 required that a municipality participate in the FY2011 Shared Fisheries
Business Tax Program, the municipality demonstrates to the Department of Community and
Economic Development that the municipality suffered significant effects during calendar
year 2008 from fisheries business activities.
The Department of Community and Economic Development prepared specific application
forms for the purpose of presenting the municipality's claims as to the significant effects
suffered by the municipality during calendar year 2009.
3AAC 134.100 required the governing body of the municipality to include with the
municipality's FY2011 program application an approved resolution certifying the information
contained in the application to be true and correct. The resolution certified the information
contained in the Kodiak Island Borough FY2011 Shared Business Tax Program application to
be true and correct.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Fulp, Jeffrey,
Kaplan, Lynch, and Stutes.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 871
Ordinances for Introduction
1. Ordinance No. FY2011 -10 Rezoning Lot 3, Block 1, Woodland Acres Subdivision - 3694
Rezanof Drive East, From RR —Rural Residential To B— Business (Painter Family Trust).
JEFFREY moved to adopt Ordinance No. FY2011 -10 in first reading to advance to public
hearing at the next regular meeting of the Assembly.
At its regular meeting of November 19, 2010, the Planning and Zoning Commission held a
public hearing on Case 11 -008 Painter Family Trust. After the public hearing, the Commission
found that a rezone from RR -Rural Residential to B- Business was justified in the context of
surrounding development and the expressions of support from nearby residents. The
Commission deferred adoption of the findings of fact for this case until its regular meeting on
December 15, 2010. The Commission, in addition to finding the request consistent with the
comprehensive plan, also provided certain recommendations to accompany this request
regarding screening and concerns about traffic congestion. The Kodiak Island Borough Planning
and Zoning Commission recommended the approval of this zoning change.
CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan, Lynch,
Stutes, and Austerman.
Other Items
1. State of Alaska Alcoholic Beverage Control Board Request for Renewal of Liquor License
Applications for Kalsin Bay Inn, Lic. #622 (Package Store) and Kalsin Bay Inn, Lic. #621
(Beverage Dispensary). (Applicant: Wayne L. Sargent)
STUTES moved to voice protest to the State of Alaska Alcoholic Beverage Control Board for the
renewal application for the Kalsin Bay Inn, Lic. #622 (Package Store) and Lic. #621 (Beverage
Dispensary) (Applicant: Wayne Sargent) based on unpaid taxes.
After the Clerk's office routine investigation following KIBC 5.01.020 License renewal procedure,
it was determined that the Borough voice protest based on unpaid taxes.
ROLL ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan,
Lynch, Stutes, Austerman, and Friend.
2. Confirmation of Assembly Appointment to the Board of Equalization.
JEFFREY moved to confirm the Assembly appointment of Ms. Cheryl McNeil to the Board of
Equalization alternate seat fora term to expire December 2013.
Two seats on the Board of Equalization expired December 31, 2010, one regular seat and an
alternate seat. One application was received from Ms. Cheryl McNeil on December 1, 2010, for
the alternate seat for a term to expire December 2013.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes,
Austerman, Friend, and Fulp.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 872
3. Confirmation of the Mayoral Appointment to the Planning and Zoning Commission City
Seat.
JEFFREY moved to confirm the mayoral appointment of Mr. Alan Schmitt to the Planning and
Zoning Commission City Seat for a term to expire December 2011.
The city seat was vacant on the Planning and Zoning Commission for a term to expire
December 2011. An application was received from Mr. Alan Schmitt who was a City resident.
His application was forwarded to the City Council for a recommendation as required by KIBC
2.105.010. At its work session of December 7, 2010, the City Council forwarded its
recommendation of Mr. Schmitt's appointment to the city seat for a term to expire December
2011.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes,
Austerman, Friend, Fulp, and Jeffrey.
4. Assembly Direction to the Treasurer /Finance Director to Publish the 2010 Roll of Real
Properties Subject to Foreclosure.
KAPLAN moved to direct the Finance Director to publish the 2010 roll of real properties subject
to foreclosure in a newspaper of general circulation in the Borough.
Per KIBC 3.35.160 Preparation of the foreclosure list. When the assembly elects to proceed
under the Alaska Statutes to enforce the lien of taxes against real property, the treasurer shall,
within such time as the assembly directs, make up a roll in duplicate of all real property subject
to foreclosure. The rolls shall show the name of each person appearing on the latest tax roll as
the owner of tax - delinquent property, a description of each property as it appears on the latest
tax roll, the year or years for which the taxes are delinquent, the amount of delinquent taxes for
each year and penalty and interest thereon accruing the day six months after the day of
delinquency of taxes of the latest year. The treasurer shall endorse on the roll a certificate under
his hand and the corporate seal that it is a true and correct roll of the delinquent taxes of the
borough for the years shown. The roll shall be known as the foreclosure list of the borough for
the year in which it is made up, and the original of it shall be filed with the clerk and remain open
to inspection by the public.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend,
Fulp, Jeffrey, and Kaplan.
EXECUTIVE SESSION
A. Review of an Order Denying a Litigant's Motion for Partial Summary Judgment and
Granting KIB's Motion for Summary Judgment.
JEFFREY moved to convene into executive session to discuss a review of an order denying a
litigant's motion for partial summary judgment and granting the Borough's motion for summary
judgment which qualifies for executive session as pending litigation to which the Borough is a
party.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Austerman, Friend, Fulp,
Jeffrey, Kaplan, and Lynch.
Deputy Presiding Officer Friend recessed the regular meeting at 9 p.m. and convened the
executive session.
Kodiak Island Borough Assembly Minutes
January 6, 2011 Page 873
Deputy Presiding Officer Friend reconvened the regular meeting at 9:27 p.m.
No action was taken as a result of the executive session.
CITIZENS' COMMENTS
None.
ASSEMBLY MEMBER COMMENTS
Assembly members Lynch, Kaplan, Jeffrey, Austerman, Fulp, Stutes, and Friend congratulated
Jayse Taan and thanked Dr. Foy for his presentation.
Assembly member Jeffrey wished everyone a Happy New Year and good luck to the Joe Floyd
Tournament teams. She announced that the Board of Fish reception was scheduled for January
11, 2011, and the Governor's Reception on January 16, 2011.
Assembly member Stutes recognized that the Solid Waste Advisory Board had a full board and
she was looking forward to more information on transfer stations.
Deputy Presiding Officer Friend reported that he visited transfer stations in Hawaii and would
share pictures with the Assembly.
Announcements
The next Assembly work session would be held on Thursday, January 13, 2011, at 7:30 p.m. in
the Borough Conference Room and the next regular meeting of the Assembly was scheduled on
Thursday, January 20, 2011.
The Borough Assembly would meet Saturday, January 15, 2011, at 9 a.m. at the Kodiak
Fisheries Research Center to discuss the Kodiak Island Borough Strategic Plan.
The Borough offices would be closed Monday, January 17, 2011, in observance of Martin
Luther King Day.
ADJOURNMENT
JEFFREY moved to adjourn the meeting.
ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Fulp, Jeffrey,
Kaplan, Lynch, and Stutes.
The meeting adjourned at 9:40 p.m.
KODIAK ISLAND BOROUGH
i " 1
ATTEST: J • rome M. Selby, -
1 IIDL_:
Nova M. Javier,: C, Borough Clerk Approved: February 3 2-Du
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January 6, 2011 Page 874