Loading...
06/02/2011 Regular Meeting KODIAK ISLAND BOROUGH Assembly Regular Meeting June 2, 2011 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, June 2, 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. Captain John Quinn of the Salvation Army provided the invocation. Mayor Selby led the Pledge of Allegiance. Present were Mayor Jerome Selby, Assembly members Jerrol Friend, Judy Fulp, Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Finance Director Karl Short, Engineering and Facilities Director Woody Koning, Clerk Nova Javier, and Deputy Clerk Marylynn McFarland. KAPLAN moved to excuse Assembly member Austerman who was absent due to personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA AND CONSENT AGENDA FRIEND moved to approve the agenda and consent agenda. FRIEND moved to suspend the rules by moving Item 12.A Ordinance No. FY2011 -16 before the Public Hearing. ROLL CALL VOTE ON MOTION TO SUSPEND THE RULES CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan, Lynch, and Stutes. VOICE VOTE ON MOTION TO APPROVE THE AGENDA AND CONSENT AGENDA AS AMENDED CARRIED UNANIMOUSLY. APPROVAL OF MINUTES A. Regular Meeting Minutes of May 5, 2011, were approved under the consent agenda. AWARDS AND PRESENTATIONS — None. CITIZENS' COMMENTS Tuck Bonney spoke against Ordinance No. FY2011 -16. Rebecca Shields and Dave Blacketer encouraged continued funding for the non - profits in Kodiak. Ken Reinke spoke in favor of extending Contract No. FY2010 -10 with Threshold Recycling. Kodiak Island Borough Assembly Minutes June 2, 2011 Page 916 Lorna Arndt spoke in favor of the Borough making cuts to the FY2012 budget. Margaret Hall spoke in favor of a long -term care facility and Contract No. FY2011 -33. Mel Stephens spoke against Contract No. FY2011 -33. Kate Ballenger spoke against raising the mill and garbage rates. COMMITTEE REPORTS Assembly member Lynch reported on the Parks and Recreation Committee Trails Meeting on Wednesday, June 1, 2011. Assembly member Jeffrey reported on the Kodiak Fisheries Advisory Committee (KFAC) meeting held on Friday, May 20, 2011. UNFINISHED BUSINESS A. Ordinance No. FY2011 -16 Amending Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.45 Severance Tax Section 3.45.020 Resources Subject to Tax and Section 3.45.010 Definitions. The motion before the Assembly was to adopt Ordinance No. FY2011 -16 as amended by substitution. This ordinance would change the severance tax rate from the current mill rate to a fixed percentage of 1.25 %. Instead of spreading severance tax revenues across all area -wide funds that levy a property tax, all proceeds would go to the general fund. Under the current regulations, the severance tax rate would have to be increased any time an area -wide service would be started if it was going to be financed with property taxes. At the request of the Assembly, staff proposed different amendments, one being where the fixed percentage went back to a mill levy by levying as a sum of all area -wide mill levies, and there was an amendment that allocated the taxes to the general fund in order that the mill levy would go into that account. Staff recommended the changes and they were reflected in the budget. FRIEND moved to amend Ordinance No. FY2011 -16, Line 45 by striking out "one and a quarter percent (1.25 %)" and replace the wording with "the sum of all area -wide mill levies ", and to reinsert the wording on Lines 71 and 72, "beginning July 1st after the date of the setting of the mill levy ". ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Friend. FULP moved to amend Ordinance No. FY2011 -16 by striking Line 16 and Line 17, "WHEREAS, this ordinance would change the severance tax rate from current mill rate to a fixed percentage; and ". Kodiak Island Borough Assembly Minutes June 2, 2011 Page 917 ROLL CALL VOTE ON MOTION TO AMEND CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Friend, and Fulp. ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Friend, Fulp, and Jeffrey. PUBLIC HEARING A. Ordinance No. FY2011 -01A Amending Ordinance No. FY2011 -01 Fiscal Year 2011 Budget By Amending Budgets to Account for Various Revenues that Are Over and Under Budget, Provide for Additional Expenditures, Budget New Projects, Accept Grants, and Move Funds Between Projects. KAPLAN moved to adopt Ordinance No. FY2011 -01A Fiscal Year 2011 Budget By Amending Budgets to Account for Various Revenues that Are Over and Under Budget, Provide for Additional Expenditures, Budget New Projects, Accept Grants, and Move Funds Between Projects. This ordinance: • Reduced the budget for real and personal property tax revenues which were $134,000 less than the original budget. • Increased severance tax revenue by $250,000. • Reduced the raw fish tax budget by $173,615 due to lower than expected revenues. • Reduced the General Fund budget for interest earnings by $200,000 because of poor market conditions. • Increased the General Fund budget by $522,059 due to an Exxon Valdez settlement. • Increased the General Fund fixed asset revenue line item by $6,047 due to the sale of fixed assets that were not budgeted. • Increased the budget for attorney services by $40,000. • Increased the Health and Sanitation department by $18,315 and decreased the Culture and Recreation Department by the same amount. • Reduced the contribution to libraries by $6,000. • Increased the General Fund transfer to Fund 290 special projects by $147,372 (Code Update $95,000 and Road System Trails Plan $75,000). • Transferred $35,000 to Service Area No. 1 to cover a portion of the costs to repair a drainage system. • Increased the surveys account in the Land Sales Fund by $33,000. • Increased the Building and Grounds Fund MHC Apartment department by $8,427. • Reduced the Coastal Management Department by $12,000. • Reduced the Local Emergency Planning Committee (L.E.P.C). grant by $6,825. • Increased the Building and Grounds Fund School Building Major Repairs by $30,000. • Reduced the Facilities Fund transfer to the Debt Service Fund by $26,000. • Increased Project 03119 by $165,000, New Swimming Pool, to cover the costs of artwork and additional construction. • Accepted and budgeted a grant increase of $218,374 in the State Seismic Reimbursement Project. • Accepted and budgeted a $462,000 grant for the KMS Seismic Upgrade. • Adjusted the expenditure budget in Funds 450 and 469 due to overages in some projects and savings in others per the attached schedule. Kodiak Island Borough Assembly Minutes June 2, 2011 Page 918 • Budgeted a loan of $2,612,000 for landfill improvements (project 07013). • Budgeted for an additional $917,197 in grants in Fund 450. Mayor Selby opened the public hearing. Scott Arndt, Chairman of Service Area No. 1, addressed the $35,000 reimbursement for the expenses incurred for the drainage problem, and encouraged the Assembly for full reimbursement of $70,000. Mel Stephens spoke against Service Area No. 1 paying for drainage expenses incurred on a state road. Scott Griffin, Womens Bay Service Area Board member, spoke to the Womens Bay Service Area being reimbursed for monies spent for emergency flooding reconciliation for subdivisions in the area. Mayor Selby closed the public hearing LYNCH moved to amend the amount to Service Area No. 1, Line 9 by striking out $35,000 and inserting zero and adjust the General Fund Balance accordingly. ROLL CALL VOTE ON MOTION TO AMEND CARRIED FOUR TO THREE: Lynch, Fulp, Jeffrey, and Selby (Ayes); Stutes, Friend, and Kaplan (Noes). ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED FOUR TO THREE: Fulp, Jeffrey, Lynch, and Selby (Ayes); Stutes, Friend, and Kaplan (Noes). B. Ordinance No. FY2012 -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 2011 and Ending on the Thirtieth Day of June 2012 (Fiscal Year 2012 Budget ). KAPLAN moved to adopt Ordinance No. FY2012 -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 also levied a tax on the real and personal property within the Borough. The total mill levy for the General Fund, Kodiak Island Borough School District Education and Support Fund, Debt Service Fund, and the Renewal and Replacement Fund was 11 mills, an increase of a 1/2 mill. The General Fund was balanced at $5,907,297 and included a mill levy of 1/10 of a mill, and included the recommended cuts discussed at the previous work session which included phasing out the use of credit cards in the amount of $56,635. The Kodiak Island Borough School District contribution was $10,108,140 which included $802,588 of in -kind services with a mill levy of 9.27 mills. The debt service fund totaled $4,299,655 with a mill levy of 1.55 mills, an increase of .25 mills. The renewal replacement fund totals $84,000 with a mill levy of .08 mills. The special revenue funds were balanced and mill levies were set for all services area. There were no mill levy increases for the service areas. The enterprise funds were also balanced with revenue and fees for each fund. The FY2012 budget Kodiak Island Borough Assembly Minutes June 2, 2011 Page 919 continued to provide a high level of services expected from the community and set by the Assembly in the FY2012 Strategic Plan. The FY2012 budget was balanced while meeting the challenges of increased costs, increased utility costs, vendor increases, health insurance increases, revenue reductions in investment earnings, and no more excess fund balance to use. The FY2011 budget used approximately $1.24 million of fund balance, leaving the general fund balance at approximately $1 million, an amount needed in reserves to meet day -to -day expenses and unforeseen emergencies. The Kodiak Island Borough was managing $148 million in ongoing projects funded through bonds, grants, facilities funds, and internal funds. The Borough continued to renew and replace current facilities valued at over $100 million with improvements to those facilities that included energy saving measures that reduced energy costs. Education support funding to the Kodiak Island Borough School District totaled $10,108,140. The amount was less than requested, KIBSD would receive an additional $693,000 from State funding, leaving a difference of $384,093 that the school board could use from fund balance. The community continued to support the school district with a total contribution of $11,392,946 which included $1,284,806 in net debt service. This total amount did not include the millions allocated for school building renewal and replacement projects. LYNCH moved to amend Ordinance No. FY2012 -01 by amending the mill rates on: Line 45 Kodiak Island Borough to read .07 mills Line 46 Education Support Fund to read 8.8 mills Line 59 Renewal and Replacement Fund to read .08 mills This motion provided a 10.5 mill rate. ROLL CALL VOTE ON MOTION TO AMEND FAILED FOUR TO THREE: Friend, Fulp, Kaplan, and Selby (Noes); Stutes, Jeffrey, and Lynch (Ayes). FRIEND moved to amend Ordinance No. FY2012 -01 by amending the mill rates on: Line 45 Kodiak Island Borough to read .10 mills Line 46 Education Support Fund to read 9.27 mills Line 59 Renewal and Replacement Fund to read .08 mills ROLL CALL VOTE ON MOTION TO AMEND CARRIED FOUR TO THREE: Friend, Fulp, Kaplan, and Selby (Ayes); Lynch, Jeffrey and Stutes (Noes). Mayor Selby opened the public hearing. Scott Arndt spoke in support of maintaining the FY2012 budget at 10.5 mills, and on behalf of the Service Area No. 1 Board he addressed the Board's fund balance. Mel Stephens spoke about the Borough's website and lack of information, and also asked that the mill rate for the Education Support Fund be reduced substantially. Margaret Hall requested that Assembly members use their microphones in order to be heard by the public. Kodiak Island Borough Assembly Minutes June 2, 2011 Page 920 Stewart McDonald, Kodiak Island Borough School District Superintendent of Schools, distributed information from the Department of Education and Early Childhood Development outlining mill rate equivalency information for school districts state -wide. Kate Ballenger spoke in support of the Service Area No. 1 Board being reimbursed monies withheld from the proposed amended FY2012 budget. STUTES moved to amend Ordinance No. FY2012 -01, Section 7, by adding the following "Necessary line item changes from the Manager's proposed budget as reflected by the back -up information attached to Ordinance No. FY2012 -01 shall include the following authorized expenditures are to be reduced by at least $18,000 and shall include the following reductions from the Manager's budget: Account 100 - Assembly Acct. 430.100 Lobbyist $2,000 Acct. 450.210 Food /Business Lunch $4,000 Acct. 450.300 Travel and Per Diem $5,000 Acct. 459.301 Mayor Travel /Per Diem $7,000 Authorized expenditures are to be reduced by at least $82,000 and shall include the following reductions from the Manager's budget: Account 105 - Manager Accts. 430.100 and 420, all funds authorized for the position of an assistant to the manager's executive assistant are to be removed and the total of these funds shall be reduced by at least $75,000. Acct. 450.270 Continuing Education $3,000 Acct. 450.300 Travel /Per Diem $4,000 ROLL CALL VOTE ON MOTION TO AMEND FAILED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Friend. FRIEND moved to postpone Ordinance No. FY2012 -01 to a special meeting of the Assembly on June 9, 2011. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Friend, and Fulp. There was consensus of the Assembly to meet Wednesday, June 8, at 6:30 p.m. for a special work session to discuss the budget. Mayor Selby recessed the meeting at 9:15 p.m., and reconvened at 9:30 p.m. Kodiak Island Borough Assembly Minutes June 2, 2011 Page 921 BOROUGH MANAGER'S REPORT Manager Gifford reported on the following: • Commended Assembly member Lynch and the Parks and Recreation Committee for the fine job at the Trails Meeting and with the plan. • Alaska Marine Transportation Advisory Board meeting in Kodiak on Tuesday, June 28, 2011, at the Kodiak Convention Center at 9 a.m. • Kodiak Island Borough and City Joint Work session scheduled for June 28, 2011. MESSAGES FROM THE BOROUGH MAYOR Mayor Selby requested that the Manager work with the Borough federal lobbyist in getting an update on the Environmental Protection Agency's draft guidance, "Identifying Waters Protected by the Clean Water Act ", in order to submit comments. NEW BUSINESS Contracts 1. Contract No. FY2011 -33 Approval of Concept Design Phase for the Kodiak Long Term Care Center Design Project. JEFFREY moved to authorize the manager to execute Contract No. FY2011 -33 with Architects Alaska, Inc. for the Concept Design Phase for the Kodiak Long Term Care Center Design Project in an amount not to exceed $146,582. Kodiak Island Borough solicited proposals to provide architectural /engineering services for the Kodiak Long Term Care Center Design Project in accordance with KIB Code 3.30.070. Nine proposals were received and short- listed to four by the Architectural Review Board (ARB). Four live presentations were made at public meetings. The proposals and presentations were scored by the ARB and Architects Alaska was selected for negotiations. Staff negotiated scope, schedule, and price with Architects Alaska. This phase consisted of preliminary conceptual design, site selection, and building and site development cost estimates for feasibility study only. The remaining phases would be authorized at later dates pending a favorable feasibility study. ROLL CALL VOTE ON MOTION CARRIED FOUR TO TWO: Kaplan, Lynch, Friend, and Jeffrey (Ayes); Stutes and Fulp (Noes). 2. Contract No. FY2010 -10 Second Extension of the Recycling Contract with Threshold Services Inc. FRIEND moved to authorize the manager to execute the optional second one -year extension for Contract No. FY2010 -10 with Threshold Services, Inc. of Kodiak, Alaska for a time and material 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 Kodiak Island Borough Assembly Minutes June 2, 2011 Page 922 a receiving, handling, processing, storage, and marketing operation for recyclable materials in Kodiak for shipment to markets off - island. Threshold achieved this through their goal to provide work and training for persons with disabilities or who were chronically not employable; a valued community service. The KIB recyclable material included those items brought by the public to various collection stations, Threshold's location on Von Scheele, community cardboard dumpsters, as well as the material picked up by Threshold at various business locations. This contract extension obligated KIB to make payment to Threshold based on the amount of recyclables shipped off island at the same rates, and under the same conditions as the underlying existing contract. The proposed FY2012 landfill budget included $281,450 for recycling services, which included funds to support public outreach expenses. Assembly member Lynch declared a conflict of interest to the Mayor and Assembly in her position as President of the Board of Threshold with no financial gain. Mayor Selby declared Assembly member Lynch had no conflict of interest. Assembly member Stutes requested that the Assembly give direction to the Manager to give Alaska Waste the definitive end date of September 30 in writing, as the timeframe for them to exercise their option for recycling. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Friend, Stutes, Fulp, Jeffrey, and Kaplan, Resolutions 1. Resolution No. FY2012 -02 Reestablishing the Fees of the Kodiak Island Borough. JEFFREY moved to adopt Resolution No. FY2012 -02. Prudent financial management dictated that an organization review its fees on at least an annual basis. Staff compiled a list of current fees and recommended several changes to the fee resolution. STUTES moved to postpone Resolution No. FY2012 -02 with Alaska Waste until after the contract had been signed. STUTES moved to amend Resolution No. FY2012 -02 where landfill fees would remain at $150 /ton. ROLL CALL VOTE ON MOTION TO AMEND CARRIED FOUR TO TWO: Fulp, Jeffrey, Kaplan, and Stutes (Ayes); Friend and Lynch (Noes). ROLL CALL VOTE ON MOTION TO POSTPONE FAILED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Friend, Kodiak Island Borough Assembly Minutes June 2, 2011 Page 923 ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED FIVE TO ONE: Jeffrey, Kaplan, Stutes, Friend, and Fulp (Ayes); Lynch (No). Ordinances for Introduction None. Other Items 1. Declaring a Seat on the Planning and Zoning Commission Vacant. This item was approved under the consent agenda. On May 19, 2011, the Clerk's office received notification from the Community Development Department of the resignation of Mr. Dave King from the Planning and Zoning Commission for a term to expire December 2012. The Assembly accepted, with regret, the resignation of Mr. King and directed the Borough Clerk to advertise the vacancy per Borough code. 2. Approval of the Solid Waste Advisory Board By -Laws. KAPLAN moved to approve the Solid Waste Advisory Board By -laws as presented. The Solid Waste Advisory Board (SWAB) established by -laws and they were reviewed by the Borough attorney. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Friend. 3. Mayoral Appointment to the Solid Waste Advisory Board. FRIEND moved to confirm the Mayoral Appointment of Mr. Scott Arndt to the Solid Waste Advisory Board Construction Business Representative seat for a term to expire December 2012. The Clerk's Office received applications from Mr. Ed Mahoney, Mr. Scott Arndt, and Mr. Gary Rabideau for the vacant Construction Business Representative seat on the Solid Waste Advisory Board for a term to expire December 2012. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Friend, and Fulp. CITIZENS' COMMENTS Mel Stephens requested that the old budget format be used for ease of comparison. He also requested that meeting agendas not be packed and make budget information available on the Borough website. Mr. Stephens also made general comments on Contract No. FY2011- 33. Scott Arndt spoke to the timing of the budget information available to the public and Assembly. He also commented and questioned different fees in Resolution No. FY2012 -02. Kodiak Island Borough Assembly Minutes June 2, 2011 Page 924 Jimmy Nq spoke to and thanked the Assembly for the approval of Contract No. FY2011 -33. Mike Milligan explained the severance tax in relationship to school and state funding, and requested that the Assembly look at fishing vessels that were not being taxed. ASSEMBLY MEMBER COMMENTS Assembly member Stutes thanked Mr. Arndt for serving on the Solid Waste Advisory Board. Assembly member Kaplan thanked the Mayor and Assembly for the letter to the Alaska Redistricting Board, and Bob Brodie for his efforts. Announcements The Assembly would hold a special work session on Wednesday, June 8, 2011, a special meeting and work session on Thursday, June 9, 2011, at 7:30 p.m. in the Borough Conference Room, and a regular meeting of the Assembly on Thursday, June 16, 2011, at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT JEFFREY moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Friend, Fulp, and Jeffrey. The meeting was adjourned at 10:25 p.m. KODIAK ISLAND BOROUGH r v _ATTEST: - Jr come M. Selby, Mayor trI/UE Nova M. Javier, MMC, Borough Clerk Approved: July 7, 2011 Kodiak Island Borough Assembly Minutes June 2, 2011 Page 925