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06/16/2011 Regular Meeting KODIAK ISLAND BOROUGH Assembly Regular Meeting June 16, 2011 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, June 16, 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. Mayor Selby led the Pledge of Allegiance. Present were Mayor Jerome Selby, Assembly members Jerrol Friend, Carol Austerman, Judy Fulp, Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Manager Rick Gifford, Assessor Bill Roberts, Finance Director Karl Short, Engineering and Facilities Director Woody Koning, and Assistant Clerk Jessica Kilborn. APPROVAL OF AGENDA AND CONSENT AGENDA AUSTERMAN moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES None. AWARDS AND PRESENTATIONS Manager Gifford presented the Government Finance Officers Association Distinguished Budget Presentation Award to Finance Director Karl Short. CITIZENS' COMMENTS Karen Yashin thanked the Assembly for its hard work and spoke against the animal control services being cut from the Borough budget. Sumie Ono, Larry Van Daele, Carolyn Heitman, Lenny Roberson, Lorna Arndt, and Kate Ballenger spoke on the proposed roll cart expansion areas amendment. Lindsay Howell, Kodiak Chamber of Commerce Community Relations Director, spoke in support of Contract No. FY2011 -30 and reported on the summer litter patrol. Janet Wente and Mel Stephens spoke against Ordinance No. FY2012 -02. COMMITTEE REPORTS Assembly member Kaplan announced that a Solid Waste Advisory Board meeting would be held on Wednesday, June 22, 2011, at 5:15 p.m. in the Borough Conference Room. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 928 PUBLIC HEARING None. BOROUGH MANAGER'S REPORT Manager Gifford reported on the following: • Otmeloi Park was closed due to a home heating fuel tank leak in the area of Island Lake. • AK Marine Transportation Advisory Board meeting would be held in Kodiak on Tuesday, June 28, 2011, at 9 a.m. at the Kodiak Convention Center. • A reminder that Ordinance FY2011 -15 prohibited the sale and use of fireworks throughout the year except during the dates of June 15 through July 15, and December 26 through January 1. • Would be out of the office June 24 -27, 2011. MESSAGES FROM THE BOROUGH MAYOR Mayor Selby announced that Federal "Payment In Lieu of Taxes" monies were released the week of June 13. UNFINISHED BUSINESS A. Direction to Proceed With the Alaska Waste Proposed Roll Cart Service Expansion Areas. The motion before the Assembly was to direct the Manager to proceed with the Alaska Waste Proposed Roll Cart Service Expansion Areas. At the work session of February 24, 2011, the Assembly requested to hold a public hearing to hear comments from the residents affected by the proposed expansion areas for roll cart services related to the Solid Waste Collection Contract. On March 14, 2011, public hearing forms and informational material were mailed to the residents within the areas. This item was postponed by the Assembly from the April 7, 2011 regular meeting with a specific motion requesting that it be scheduled when a full Assembly was present. Public hearing notices that were received regarding this item were made available to the Assembly for consideration. An amendment was being presented which would allow expansion area residents to have the choice between two roll cart sizes or to retain their current dumpster service. Assembly members discussed the safety issues of not providing bear - resistant carts to residents in the expansion areas. LYNCH moved to amend direction to the manager to proceed with the Proposed Roll Cart Service Expansion Areas for the collection of household refuse based on a voluntary customer choice of either a 64- gallon or 96- gallon roll cart service or retain the dumpster service and adjust monthly fees accordingly. FULP moved to amend that the proposed expansion areas be provided bear - resistant carts only. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 929 ROLL CALL VOTE ON MOTION TO AMEND THE TYPE OF ROLL CART SERVICE FAILED FIVE TO TWO: Austerman, Friend, Jeffrey, Kaplan, and Lynch (Noes); Fulp and Stutes (Ayes). FRIEND moved to further amend the direction to the manager to proceed with the Proposed Roll Cart Service Expansion Areas for the collection of household refuse based on a voluntary customer choice of either a 64- gallon or 96- gallon roll cart service or retain the dumpster service and adjust monthly fees accordingly in Expansion Area 1A only. ROLL CALL VOTE ON MOTION TO AMEND THE AMENDMENT BY LIMITING THE ROLL CART SERVICES OPTION TO EXPANSION AREA 1A ONLY CARRIED FIVE TO TWO: Friend, Jeffrey, Lynch, Stutes, and Austerman (Ayes); Fulp and Kaplan (Noes). FULP moved to amend by using Benny Benson Drive as the demarcation point of the expansion of the roll cart services in Expansion Area 1A. ROLL CALL VOTE ON MOTION TO AMEND THE BOUNDARIES OF EXPANSION AREA 1A FAILED FIVE TO TWO: Jeffrey, Kaplan, Lynch, Austerman, and Friend (Noes); Fulp and Stutes (Ayes). ROLL CALL VOTE ON MOTION TO AMEND CARRIED FIVE TO TWO: Jeffrey, Lynch, Stutes, Austerman, and Friend (Ayes); Fulp and Kaplan (Noes). ROLL CALL VOTE ON MAIN MOTION AS AMENDED CARRIED FIVE TO TWO: Stutes, Austerman, Friend, Jeffrey, and Lynch (Ayes); Fulp and Kaplan (Noes). NEW BUSINESS Contracts 1. Contract No. FY2011 -30 Between the Kodiak Island Borough and the Kodiak Chamber of Commerce of Kodiak, Alaska for Economic Planning and Project Development Within the Kodiak Island Borough for FY2012. JEFFREY moved to authorize the Manager to execute Contract No. FY2011 -30 with Kodiak Chamber of Commerce of Kodiak, Alaska for Economic Planning and Project Development within the Kodiak Island Borough for FY2012 in the amount not to exceed $45,000. The Kodiak Island Borough had participated in a community -based economic development program operated by the Kodiak Chamber of Commerce for many years. Funding support from the Borough and the City of Kodiak would be used to provide an Economic Development Committee and necessary staff to focus on economic development planning and project development in the Kodiak Region. Those who served on the Economic Development Committee were drawn from the Kodiak Island community with representatives from the City of Kodiak, Kodiak Island Borough, Kodiak -area outlying communities, and the Kodiak Chamber of Commerce. This contract would renew the Kodiak Island Borough Assembly Minutes June 16, 2011 Page 930 relationship for the 2012 fiscal year. The duties to be accomplished for this period were • outlined in the agreement. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Austerman, Friend, Fulp, and Jeffrey. 2. Contract No. FY2010 -30A Amendment No. 1 to the Solid Waste Collection Services Contract. FRIEND moved to authorize the Manager to execute Amendment No. 1 to the existing Contract No. FY2010 -30 Solid Waste Collection Services with Alaska Pacific Environmental Services Anchorage, LLC for the Exclusive Service Contract for Residential and Commercial Refuse Collection and Transportation to the KIB Landfill. Both parties to this agreement acknowledged that certain financial performance assurances must be provided to the Borough to assure continued service in the event of a performance failure by the Contractor. The Contractor sought a Letter of Credit to provide the Borough with the needed financial assurances. Due to the extraordinary conditions presently existing in the banking industry, the Contractor was unable to secure a suitable Letter of Credit. The Contractor proposed to substitute the Letter of Credit requirement with a combination of a Performance Bond and a Pledged Bank Account with the Borough as the only party able to make withdrawals from the account. Interest on the account would be payable to the Contractor. These financial instruments would provide the Borough with the necessary resources to continue services should the Contractor fail to perform. The Borough Attorney agreed with the substitution and drafted the Contracted Amendment. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend, Fulp, Jeffrey, and Kaplan. 3. Contract No. FY2011 -34 Janitorial Services for the KIB Administrative Building. STUTES moved to authorize the Manager to execute Contract No. FY2011 -34 to Tuan's Island Professional Cleaning Services for Janitorial Services for the KIB Administrative Building in an amount not to exceed $50,160. The Kodiak Island Borough Engineering and Facilities Department advertised the need for Janitorial Services for the Borough Administration Building. Two potential contractors registered but only one bid was submitted. Tuan's Island Professional Cleaning Service submitted the only bid of $50,160. Tuan's Services had the contract for this building for the previous four years and demonstrated excellent performance of the contract requirements. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Austerman, Friend, Fulp, Jeffrey, Kaplan, Lynch, and Stutes. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 931 4. Contract No. FY2011 -35 Janitorial Services for the Kodiak Fisheries Research Center. JEFFREY moved to authorize the Manager to execute Contract No. FY2011 -35 to Tuan's Island Professional Cleaning Services for Janitorial Services for the Kodiak Fisheries Research Center in an amount not to exceed $50,020. The Kodiak Island Borough Engineering and Facilities Department advertised the need for Janitorial Services for the Kodiak Fisheries Research Center (KFRC). Two potential contractors registered but only one bid was submitted. Tuan's Island Professional Cleaning Service submitted the only bid of $50,020. Tuan's Services had the contract for the KFRC building for the previous four years and demonstrated excellent performance of the contract requirements. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Austerman. 5. Contract No. FY2011 -36 East Elementary Generator, Building, and Fuel Tank Projects FRIEND moved to authorize the Manager to execute Contract No. FY2011 -36 with Brechan Enterprises, Inc. of Kodiak, Alaska for the East Elementary Generator, Building, and Fuel Tank Projects in an amount not to exceed $1,046,153. This contract combined projects listed on the Renewal and Replacement schedule including: East Elementary Generator, Building, and Fuel Tank Projects as shown in the construction documents prepared by Jensen Yorba Lott, Inc. The work would replace the existing underground storage tank with an above ground tank, replace the forty -six year old boilers with newer, more energy efficient boilers, and provide needed storage space for gym equipment. In addition to providing elementary education space the building was a designated emergency shelter and a back up for Kodiak Hospital if needed. The alternate generator was designed to meet the full load requirements of any of these uses at full function. Bids were received in response to the Borough's Invitation to Bid dated May 1, 2011. Brechan Enterprises, Inc. was the lowest responsible bidder for the project. Bid tabulation was provided. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, Austerman, and Friend. Resolutions 1. Resolution No. FY2011 -27 Approving the Village of Karluk and Its Native Village Council to Participate in the FY2012 Community Revenue Sharing Program. This item was approved under the consent agenda. This resolution identified Karluk as an unincorporated community that met the Community Revenue Sharing Program eligibility criteria established under AS 29.60.865, AS 29.60.879, and 3 AAC 180.110. Karluk had more than 25 residents and provided fire protection, emergency medical response, water and sewer services, solid waste management, and public road maintenance to its residents. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 932 2. Resolution No. FY2011 -28 Adopting the Comprehensive Economic Development Strategy (CEDS) 2011. JEFFREY moved to adopt Resolution No. FY2011 -28. The Kodiak Chamber of Commerce (KCC) was the recognized economic development organization on Kodiak Island and entered into a contract with the City of Kodiak and the Kodiak Island Borough to provide economic development planning and leadership for the Kodiak Island communities. KCC had established an Economic Development Committee to develop and review a Comprehensive Economic Development Strategy which was the first step in the process of taking advantage of the many grant and assistance programs available through the U.S. Department of Commerce Economic Development Administration. KCC would assist the communities of Kodiak Island in the planning and development of the strategies and activities that those communities found were necessary to successfully engage in pursuing desired economic growth and business development which was compatible with local needs and lifestyles. In addition, KCC was also actively pursuing opportunities to work with other communities in the Southwest region and worked cooperatively with the Southwest Alaska Municipal Conference. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Austerman, Friend, and Fulp. 3. Resolution No. FY2011 -29 Supporting Establishment of Port and Harbor Set -Aside Funding in the Civil Works Program, Army Corps of Engineers, Pacific Ocean Division. JEFFREY moved to adopt Resolution No. FY2011 -29. This Resolution encouraged Congress to amend the FY2012 Energy and Water appropriations bill and the FY2013 President's Budget Request to include an annual $50M set -aside so that the Army Corps of Engineers (ACOE) Pacific Ocean Division could prioritize and spend on projects necessary to sustain water infrastructure in small coastal communities of the region. The ACOE was the central agency for the development of water - related infrastructure throughout the Nation and the Pacific Ocean Division included Alaska, Hawaii, and the Pacific Island Territories, all of which had economies highly dependent upon port infrastructure. Congress suspended use of congressionally - directed spending and only funded projects identified through a scoring system which favored urban ports. Rural coastal communities of the Pacific Ocean Division did not have the population to compete with urban ports, yet were highly dependent on waterborne commerce. There could be a mechanism within the Energy and Water appropriations bill to recognize the unique circumstances of coastal rural communities of the ACOE Pacific Ocean Division and the projects in need of funding which included breakwaters, wave barriers, dredging, mooring basins, and flood /erosion control. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Austerman, Friend, Fulp, and Jeffrey. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 933 4. Resolution No. FY2011 -30 Implementing Alternative Delivery Methods for the Kodiak High School Renovation and Addition Project With the Approval of Alaska Department of Education and Early Development. FRIEND moved to adopt Resolution No. FY2011 -30. Kodiak Island Borough voters authorized the sale of up to $76.31M in bonds to fund the Kodiak High School Renovation and Addition Project on October 6, 2009. The design /bid /build method of project delivery was commonly used by the Borough, and using this method of delivery for this project presented several significant challenges including: restrictive site spaces, complexity of construction, the need for scheduled phasing, and the need to minimize impacts to the on -site education program. KIBC 3.30.110 allowed the use of alternative delivery methods for procurement of construction services as verified by the Borough Attorney. The State of Alaska Department of Education and Early Development allowed the use of alternative delivery methods with Borough and department approval. Use of the Construction Manager as General Contractor At -Risk (CM /GC At -Risk) delivery method provided for contractor involvement early in the design process usually at the end of the schematic design phase. Participation of the contractor in cost estimating, schedule phasing, and constructability reviews provided value to the project. Adjusting design scope based on contractors cost data provided the owner greater budget controls. Open accounting and shared responsibility provided for a reduction of risk to owner and contractor. CM /GC At -Risk provided the owner with the ability to select contractors based on qualifications and price (usually weighted 50/50); thereby, avoiding less qualified, low bidders. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Lynch, Stutes, Austerman, Friend, Fulp, Jeffrey, and Kaplan. Ordinances for Introduction 1. Ordinance No. FY2011 -17 Rezoning a Portion of Tract G and Tract H, Bells Flats, Alaska Subdivision From PL— Public Use Zone To RR1 -Rural Residential One. FRIEND moved to adopt Ordinance No. FY2011 -17 in first reading to advance to public hearing at the next regular meeting of the Assembly. The Borough Assembly previously declared these parcels to be surplus to the public's need. The Planning and Zoning Commission also approved a subdivision of these tracts into four parcels. After Borough staff spent time on -site with Womens Bay Service Area Board representatives to address concerns about drainage and retention of an existing pond for firefighting purposes, the subdivision was modified to reserve one of the lots for drainage, fish habitat, and firefighting as intended by the Commission and the Assembly. The most recent action and recommendation by the Commission was to review a rezone request of the area. If the rezone request was approved by the Assembly, the three parcels approved by plat would be made available for sale at a future Borough land auction and the Kodiak Island Borough Assembly Minutes June 16, 2011 Page 934 fourth lot would remain zoned PL- Public Use Lands. After holding a public meeting, the Commission approved recommending to the Assembly that the three parcels identified be rezoned from PL— Public Use Lands to RR1 -Rural Residential One. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Austerman, Friend, Fulp, Jeffrey, Kaplan, and Lynch. 2. Ordinance No. FY2012 -02 Submitting the Question of the Adoption of a Sales Tax to the Qualified Voters of the Borough at the October 4, 2011 Regular Election. JEFFREY moved to adopt Ordinance No. FY2012 -02 in first reading to advance to public hearing at the Assembly regular meeting of July 21, 2011. At the October 6, 2009 general election, the registered voters of the Kodiak Island Borough approved a $76,310,000 general obligation bond for renovating and additions to the Kodiak High School. The Assembly also established a fund for renewal and replacement of existing capital assets. This fund was being funded with interfund loans from the Facilities Fund which would be paid back over a period of 20 years. To make the payments on these bonds and the renewal and replacement interfund loans the Borough needed to increase revenues about $4M per year, this equated to approximately four mills. If the Borough adopted a 2% sales tax, with similar exemptions as the City of Kodiak, the Borough would avoid this four mill property tax increase. By adopting a sales tax the entire populace would help pay for these expenditures, not just the property owners. FULP moved to amend Section 2, third bullet point, to read "This tax will only be used to finance education for the Kodiak Island Borough School District and bonded debt of the Kodiak Island Borough School District." ROLL CALL VOTE ON MOTION TO AMEND FAILED FOUR TO THREE: Austerman, Friend, Kaplan, and Lynch (Noes); Fulp, Jeffrey, and Stutes (Ayes). ROLL CALL VOTE ON MAIN MOTION CARRIED SIX TO ONE: Friend, Jeffrey, Kaplan, Lynch, Stutes, and Austerman (Ayes); Fulp (No). Other Items 1. Confirmation of the Assembly Appointment to the Personnel Advisory Board. FRIEND moved to confirm the Assembly Appointments to the Personnel Advisory Board of Mr. John Durham for a term to expire December 2011 and Mr. Perry Page for a term to expire December 2013. There were two vacant seats on the Personnel Advisory Board, one to expire December 2011, and one to expire December 2013. The Clerk's office received the following applications: Kodiak Island Borough Assembly Minutes June 16, 2011 Page 935 1. Shanna Torgerson — April 20, 2011 2. John Durham — May 24, 2011 3. Perry Page — June 3, 2011 Per Section 203 of the Personnel Manual the Borough Assembly was required to appoint a Personnel Board consisting of five members. In appointing members to the Personnel Board, the Borough Assembly would take into consideration the recommendations made by Borough employees, the Borough Manager, any resident of the Borough, and their own recommendations. The applications were emailed to the Borough employees and comments returned were shared with the Assembly. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Austerman. EXECUTIVE SESSION A. Kodiak Support Services vs. Kodiak Island Borough Board of Equalization. STUTES moved to convene into executive session to discuss Kodiak Support Services vs. Kodiak Island Borough Board of Equalization which qualifies for executive session under pending litigation and attorney - client privileged communications. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, Austerman, and Friend. The Borough Assembly, Manager, Assessor, and Clerk's Office Staff were invited into executive session. The Borough Attorney attended the executive session via teleconference. Mayor Selby recessed the regular meeting at 9:37 p.m. and convened the executive session. Upon returning from the executive session, Mayor Selby reconvened the regular meeting at 10:01 p.m. and announced no action was to be taken as a result of the executive session. B. Litigation With a Former Kodiak Island Borough Employee. FRIEND moved to convene into executive session to discuss potential litigation with a former Kodiak Island Borough employee which qualifies for executive session under potential litigation and attorney - client privileged communications. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Austerman, Friend, and Fulp. The Borough Assembly, Manager, Finance Director, and Clerk's Office Staff were invited into executive session. The Borough Attorney attended the executive session via teleconference. Mayor Selby recessed the regular meeting at 10:01 p.m. and convened the executive session. Upon returning from the executive session, Mayor Selby reconvened the regular meeting at 10:18 p.m. and announced no action was to be taken as a result of the executive session. Kodiak Island Borough Assembly Minutes June 16, 2011 Page 936 CITIZENS' COMMENTS Lorna Arndt voiced concerns regarding Contract No. FY2010 -30 Solid Waste Collection Services. Rick Vahl spoke on his application for the vacant Borough seat on the Planning and Zoning Commission. ASSEMBLY MEMBER COMMENTS Assembly member Stutes reminded the Manager about the letter to Alaska Waste to exercise the recycling option set forth in Contract No. FY2010 -30. She expressed concerns that City and Borough residents were being treated differently in regards to the roll cart service option. Assembly members Friend and Jeffrey commented on the concerns of Assembly member Stutes and looked forward to future expansion efforts. Assembly member Fulp expressed condolences to the family of Mr. Brian Young. Assembly member Austerman congratulated Finance Director Short for receiving the GFOA Budget award and commended Mr. Vahl for his interest in public service. Assembly members Lynch and Kaplan had no comments. Announcements The Borough Assembly and the City Council would meet in a Joint Work Session on Tuesday, June 28, 2011, at 7:30 p.m. in the Borough Assembly Chambers. The next Assembly work session would be held on Thursday, June 30, 2011, at 7:30 p.m. in the Borough Conference Room and the next regular meeting of the Assembly was scheduled on Thursday, July 7, 2011, at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT FRIEND moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Kaplan, Lynch, Stutes, Austerman, Friend, Fulp, and Jeffrey. The meeting was adjourned at 10:35 p.m. KODIAK ISLAND BOROUGH ATTEST: Jerome M. Selby, Mayor Nova M. Javier, MM, Borough Clerk Approved: July 21, 2011 Kodiak Island Borough Assembly Minutes June 16, 2011 Page 937