2011-09-29 Work Session Kodiak Island Borough
Assembly Work Session
Thursday, September 29, 2011, 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. Kodiak Ocean Science Discovery Lab status
2. Poly- tunnel (Hoophouse) Ordinance
3. Joint Fisheries Analyst /Consultant
4. Sale of Hospital Discussion
5. Tourism Fund Review
PACKET REVIEW
PUBLIC HEARING — None.
UNFINISHED BUSINESS — None.
NEW BUSINESS
CONTRACTS — None.
RESOLUTIONS
Resolution No. FY2011 -08A Amending the Composition of the Project Advisory Committee
(PAC).
ORDINANCES FOR INTRODUCTION
Ordinance No. FY2012 -09 Reestablishing Boards, Committees, and Commissions as
Established in the Kodiak Island Borough Code of Ordinances Title 2 Administration and
Personnel Chapter 2.100 Boards, Committees, and Commissions.
OTHER ITEMS
Hiring for the Position of Solid Waste Manager /Environmental Specialist at Range 23, Step H.
EXECUTIVE SESSION
Borough Clerk's Performance Evaluation.
Borough Manager's Performance Evaluation.
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLY MEMBERS COMMENTS
i
OSDL Modules Other components
Core program;
Elementary Grades k -2 Adult education NMFS website
2 classroom visits program & publication
3
4
I. 5
Middle School Scientist in the Young scientist Bus fund
6 classroom Intern program
7 program
8
High School
units Middle /High scho Marine Water
Tsunami. Bowl Marine Stewar Inspired Art playground
ship club program
PrO'gram,
director
salary /year Summer camp Professional
- 't- ($75;000 " science & art development
Assitant program program
salary /year:
4 ,:,$25,000- - 1
Equipment ,' Lab Tech Robotics /submar:
& course program
`.$2, program
Tra"veh•
e.:.' =$2;000
Oceanography/ Tide pool
Marine Biology class
class program
Ocean connector
Village school program
Marine Biology participation
program _(grades 4 and 5)
* Various modules may be included
in the core program in a given year.
Separate module budgets depend on
partners /extent of the program
Introduced by: Borough Manager
Requested by: Borough Assembly
1 Drafted by: Assembly Member Lynch
Introduced: XX/XX/2011
2 Public Hearing:
3 Adopted:
4
5 KODIAK ISLAND BOROUGH
6 ORDINANCE NO. FY2012 -XX
7
8 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
9 AMENDING THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 15
10 BUILDINGS AND CONSTRUCTION CHAPTER 15.10 BUILDING CODES BY ADDING
11 SECTION 15.10.180 POLY - TUNNELS
12
13 WHEREAS, there has been an increased use of poly - tunnels (hoophouses) nationwide
14 and, in Kodiak, as a practical and inexpensive means of growing fruits and vegetables;
15 and
16
17 WHEREAS, the Kodiak Island Borough does not specifically address building permits for
18 poly - tunnels; and
19
20 WHEREAS, the Kodiak Island Borough proposes an exemption from the building permit
21 process and the exemption would:
22 1) apply to all non - retail poly - tunnels, either those utilized by home gardeners,
23 commercial farmers, farm markets, or residential homeowners, and it applies
24 uniformly throughout the Kodiak Island Borough; and
25 2) growers will not be burdened with the permit requirements of the building and
26 construction code and the attendant fees such as site plans signed and sealed by
27 a licensed architect or engineer, building subcode permit fees, etc.; and
28 3) the exemption will greatly enable gardeners to grow vegetables, fruits, and other
29 specialty crops in our challenging climate at times of the year in which it would
30 otherwise be impossible. Growers who sell or utilize their poly - tunnel produce
31 locally benefit from the extra income, improved nutrition and the community
32 benefits from the availability of fresh, locally grown food; and
33
34 WHEREAS, the definition is established for "Temporary Growing Structures." It is
35 defined as a structure that has the sides and roof covered with flexible plastic material,
36 such as polyethylene or polyvinyl, and is used to provide plants with frost protection or
37 increased heat; and
38
39 WHEREAS, temporary growing structures that are solely used for production of
40 horticultural plants are exempt from the requirements of the Kodiak Island Borough
41 Building Code; and
42
43 WHEREAS, such structures are not "buildings" in the traditional sense, they are not
44 expected to be lasting permanent structures, and the cost of the engineering designs and
45 constructing to such standards is unnecessary and makes them economically infeasible
46 for nursery growers.
47
48
49
50
Kodiak Island Borough Ordinance No. FY2012 -XX
Page 1 of 3
51 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
52 BOROUGH THAT:
53
54 Section 1: This ordinance is of a general and permanent nature and shall become a
55 part of the Kodiak Island Borough Code of Ordinances; and
56
57 Section 2: Title 15 Buildings and Construction Chapter 15.10 Building Codes of the
58 Kodiak Island Borough Code of Ordinances is amended by adding Section 15.10.180
59 Poly- tunnels as follows:
60
61 Chapter 15.10
62 Building Codes
63
64 Sections:
65 15.10.010 Adoption of building and other codes.
66 15.10.020 Repealed.
67 15.10.030 Copies on file for sale.
68 15.10.040 Repealed.
69 15.10.050 Remote area exemption.
70 15.10.060 Plan check and approval.
71 15.10.070 Repealed.
72 15.10.080 Uniform Building Code Section 2305 amended.
73 15.10.090 Uniform Building Code Appendix Chapter 33 amended.
74 15.10.100 Sanitation facilities.
75 15.10.110 Building permit fees.
76 15.10.120 Temporary structures.
77 15.10.130 Roof snow load.
78 15.10.140 Repealed.
79 15.10.150 Repealed.
80 15.10.160 Footings — General
81 15.10.170 Certificate of occupancy.
82 15.10.180 Poly- tunnels.
83
84 15.10.180 Poly- tunnels.
85 A. A poly - tunnel, also called a "hoophouse" or "high tunnel ", used exclusively for
86 the production or storage of live plants, shall be exempt from the permit
87 requirements of the Kodiak Island Borough and Construction Code if it meets the
88 following criteria:
89 1. There is no permanent anchoring system or foundation;
90 2. There is no storage, temporary or otherwise, of solvents, fertilizers, gases,
91 or other chemicals or flammable materials.
92 3. The structure is no wider than 31 feet and there is an unobstructed path of
93 no greater length than 150 feet from any point to a door or fully accessible
94 wall area;
95 4. The covering of the structure is of a polyethylene material no greater than
96 ten mils in thickness;
97 5. The support structure of the poly - tunnel is made of non - combustible
98 materials, e.g. metal or plastic; and
99 6. The structure is not utilized as a place for conducting retail sales.
100 7. There is no permanent electrical power.
Kodiak Island Borough Ordinance No. FY2012 -XX
Page 2 of 3
101
102 Section 3: This ordinance shall liecomeEeffe'etiveruponiad"o• ptio .
103
104 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
105 THIS DAY OF 2011
106
107
108 KODIAK ISLAND BOROUGH
109
110
111
112 Jerome M. Selby, Borough Mayor
113
114 ATTEST:
115
116
117
118 Nova M. Javier, MMC, Borough Clerk
Kodiak Island Borough Ordinance No. FY2012 -XX
Page 3 of 3
*�f KODIAK ISLAND BOROUGH
al - v Clic w� = OFFICE of the MANAGER
MEMORANDUM
TO: The Honorable Mayor and Assembly of the Kodiak Island Borough 4 6> l ei ek
FROM: Rick Gifford, Borough Manager /.
Karleton Short, Director of Finance Kt
DATE: September 23, 2011
SUBJECT: Discussion on Selling the Hospital
At the request of the Assembly, the following information concerning the hospital lease
and the hospital enterprise fund is provided for the discussion on selling the hospital.
Essential Terms of Lease & Operating Agreement with Providence
►Lease Term: Expires April 20, 2017
•Termination provisions: Either party may terminate the lease with a one year notice
►Lease payment: $60,000 per month, $720,000 per year
►KIB contributes $108,000 per year for equipment — the Fern Fuller Trust funds
$66,500 of this contribution and the remainder ($41,500) comes from lease revenues.
►First Right to Purchase: "KIB shall make any sale of said interest in the Hospital
Premises and Equipment between KIB and a third party conditioned upon and subject
to Providence's first right to purchase as set out herein, including but not limited to
space under the lease between KIB and other entities.
Other Issues to be Noted for Information
•The sale of the hospital could not happen while there are outstanding bonds. The last
payment is scheduled to be made February 1, 2014.
*There are currently two grants outstanding dealing with the hospital that would require
further investigation as to their impact if the hospital were sold. The first is the CDBG
grant of $80,000 for the planning of the Long -term Care Facility and the $1,275,000
legislative grant for the planning and design of the Long -term Care Facility.
Page I 1
•KIBC 18.20.050 would require voter approval of a sale of the hospital, if a method
other than public outcry auction is used.
•The areawide power for health powers, approved by voters in 1983, appears to be in
accordance with AS 29.35.210(d). Would the Assembly be seeking to eliminate these
powers? If so, a vote may be required to do so.
'Would we want to include the Community Health Center in this sale
*Would we want to include the Mental Health Center in this sale.
•Additional code revisions may be necessary as the current Borough code establishes
an Advisory Board, which may not continue to exist.
Page 12
Hospital Enterprise Fund Financial Statement per FY2010 CAFR
Assets Operating Income
For year end June 30, 2010 For year end June 30, 2010
Current assets: Operating revenues:
Equity in central treasury $ 807,424 Lease income $ 720,000
Operating supplies — in hospital at
start of lease 121,200 Total operating revenues 720.000
Total current
assets 928,624 Operating expenses:
Inventories 277,007 Personnel services 5,000
Capital assets: Depreciation 872,858
Non - depreciable 5,987,885 General and administration 45
Depreciable, net 15.205,296 Total operating expenses 877,903
Total capital
assets 21,193,181 Operating income (loss) (157,903)
Total
noncurrent Nonoperating revenues (expenses):
assets 21.470,188 Contribution to Providence Hospital (108,000)
Total $ 22,398,812 Slate of Alaska on- behalf payment 228
Liabilities and Net Assets Community Health Center —
Current liabilities: construction revenues and expenditures
Accounts payable CHC construction $ 81,435 went through hospital enterprise fund 1,147,762
Current portion of advance Investment income 16,702
from Facilities Fund 70,603 Interest expense (49.117)
Due to General Fund — payroll Income (loss) before
expenses 600 transfers 849,672
Total current Transfers in Fern Fuller Trust 66,500
liabilities 152,638
Noncurrent liabilities: Change in net assets 916,172
Advances from other funds 1,106,261
Net assets. at beginning of year 20,223.741
Total
noncurrent Net assets, at end of year $ 21,139.913
liabilities 1.106,261
Total liabilities 1.258,899
Net assets:
Invested in capital assets.
net of related debt 21,193.181
Unrestricted (53,268)
Total net assets 21,139,913
Total $ 22,398.812
Page 3
Hospital Enterprise Fund Financial Statement per FY2010 general ledger.
This income statement is from the general ledger and does not include the revenues
and expenditures related to the new Community Health Center. The income statement
in the CAFR contains all of the construction work in progress (CWIP), mostly pertaining
to the new Community Health Center. Statements that include the CWIP can be
misleading because they can include the revenue from the proceeds of debt or grants
but not the expenditures.
Kodiak Island Borough Hospital Facilites Fund
FY 2010 FY 2009
Operating revenues:
Lease income $ 720,000 $ 720,000
Total operating revenues 720,000 720,000
Operating expenses:
Personnel services 5,000 5,220
Employee Benefits - 166
Depreciation 872,858 929,555
General and administration 45 842
Total operating expenses 877,903 935,783
Operating income (loss) (157,903) (215,783)
Nonoperating revenues (expenses):
Contributions to Providence Hospital (108,000) (108,000)
CHC reimbursements
Investment income 16,398 9,639
Interest expense (49,117) (51,752)
Loss before transfers (298,622) (365,896)
Transfers in - Fern fuller Trust 66,500 66,500
Change in fund equity (232,122) (299,396)
Fund equity, at beginning of year 15,740,134 16,039,530
Fund equity, at end of year $ 15,508,012 $ 15,740,134
As you can see the Hospital lost $232,122 in FY2010 and $299,396 in FY2009. If
depreciation is not included in these statements than the Hospital Facilities Fund would
have made over $600,000 in both FY2010 and FY2009.
Page 4
Hospital Enterprise Fund Bond Payment Schedule.
Alaska Municipal Bond Bank - Loan Obligation - b
IKodiak Island Borough- Series2009 H
( Debt Service Schedule
Coupon Periodic Periodic Gross Fiscal Year Calendar Year
Date Principal Yield Price Rate Gross Interest Debt Service Debt Service Debt Service
2/1/2012 660,610 2.540% 103.934 4.000% 41,269.59 701,879.91 743,149.50
8/1/2012 28,057.38 28,057.38 729,937.29
2/1/2013 687,826 3.080% 103.280 4.000% 28,057.38 715,883.86 743,941.24
8/1/2013 14,300,85 14,300,85 730,184.71
2/1/2014 715.043 3,540% 102,014 4.000% 14,300.85 729,343,49 743,644.34
8/1/2014 0.00 0.00 729,343.49
Page 15
Kodiak Island Borough
\j) Detail Balance Sheet
-}} Through Date: 6/30/2011
- Account Current Y -T -D Balance Prior Year Balance Net Change Change Percentage
Fund Category: 1 Governmental Funds
Fund Type: 2 Special Revenue Funds
Fund: 277 Tourism Development
_.__._..___._. _____....._____.___.____._._._. Assets
Assets
Cash
101.100 Cash In Bank -Wells Fargo $90,728.72 $80,557.03 $10,171.69 12.62%
Cash totals' $90,728.72 $80,557.03 $10,171.69 13.00%
Investments
103.100 Investments $0.00 $0.00 $0.00 +a+
Investments totals: $0.00 $0.00 $0.00 + ++
Accounts Receivable
115.000 Accounts Receivable $0.00 $0.00 $0.00 + ++
115.100 Accounts Receivable $117.00 $200.00
($83.00) (41.50%)
115.130 Accts Rec -Bed Tax $21,382.49 $19,513.75 $1,868.74 9.57%
Accounts Receivable totals: $21,499.49 $19,713.75 $1,785.74 9.00%
Due From Other Funds
130.100 Due From Gen Fund $0.00 $0.00 $0.00 +++
Due From Othe Fund; totals' $0.00 $0.00 $0.00 + ++
Assets totals: $112,228.21 $100,270.78 $11,957.43 12.00%
Total Assets $112,228.21 $100,270.78 $11,957.43 12.00%
- Liabilities ---
i
Accounts Pavables
202.000 Accounts Payable $0.00 $10,000.00
($10,000.00) (100.00 %)
202.100 Accounts Payable $0.00 $0.00 $0.00 + ++
Accounts Pavables totals: $0.00 $10,000.00
($10,000.00) (100.00%)
Due To Other Fug
208.100 Due To General Fund $0.00 $0.00 $0.00 + ++
208.420 Due To Cap.Proj- Sch.Bonds $0.00 $0.00 $0.00 + ++
Due To Other Funds totals' $0.00 $0.00 $0.00 + ++
Customer Deoosit
229.310 Bed Tax Deposits $150.00 $107.60 $42.40 39.40%
Customer Deposits totals' $150.00 $107.60 $42.40 39.00%
kiabilitiestotals' $150.00 $10,107.60
($9,957.60) (99.00%)
Total Liabilities $150.00 $10,107.60
($9,957.60) (99.00 %)
user: Karl Short Pages 1 of 2 Thursday, September 29, 2011
Kodiak Island Borough
Detail Balance Sheet
Through Date: 6/30/2011
Account Current Y -T -D Balance Prior Year Balance Net Change Change Percentage
Fund Category: 1 Governmental Funds
Fund Type: 2 Special Revenue Funds
Fund: 277 Tourism Development
..----_---._------------- -- ----- _---- _.--- _--- -_ - - -- Fund Equity ---____-_---__-. -
Fund Equity
Fund Balance - Unreserved
253.100 Fund Bal- Unreserved $90,163.18 $90,163.18 $0.00 0.00%
253.110 PriorYr.Resery Encumb. $0.00 $0.00 $0.00 + ++
Fund Balance - Unreserved totals: $90,163.18 $90,163.18 $0.00 0.00%
F tl Eouity totals: $90,163.18 $90,163.18 $0.00 0.00%
Total Fund Equity $90,163.18 $90,163.18 $0.00 0.00%
P/Y Fund Equity Adjustment $0.00
Fund Revenues: ($96,891.34)
Fund Expenses: $74,976.31
Liability and Fund Equity Total: $112,228.21 $100,270.78 $11,957.43 12.00%
Fund Totals: Tourism Development $0.00 $0.00 $0.00
Fund Type Totals: Special Revenue Funds $0.00 $0.00 $0.00
Fund Category Totals: Governmental Funds $0.00 $0.00 $0.00
Grand Totals: $0.00 $0.0
user: Karl Short Pages 2 of 2 Thursday. September 29, 2011
- Kodiak Island Borough
Income Statement
Through Date: 6/30/2011
Annual M -T -D Y -T -D Budget Less % of Prior Year
Budget Amount Actual Amount Actual Amount Y -T -D Actual Budget YTD Total
Fund Category: 1 Governmental Funds
Fund Type: 2 Special Revenue Funds
Fund: 277 Tourism Development
----- REVENUE
Department: 000 Fund Revenues
Sales Taxes
317.100 Bed Tax Revenues $90,000.00 $21,875.67 $96,383.59 )
($6,383.59 107% $86,003.29
Account: 317 Bed Tax Revenues totals: $90,000.00 . $21,875.67 $96,383.59 ($6,383.59) 107% $86,003.29
Total Sales Taxes: $90,000.00 $21,875.67 $96,383.59 )
($6,383.59 107% $86,003.29
Interest Earnings
361.100 Interest Earnings $250.00 $158.16 $1,777.31 ($1,527.31) 711% $1,582.31
361.300 Change in Fair Mkt value $0.00 ($466.32)
($1,269.56) $1,269.56 + ++ ($202.86)
Account: 361 Interest Earnings totals: • $250.00 • ($308:16) ' $507.75 ($257.75) 203% $1,379.45
Total Interest Earnings: $250.00 ($308.16) $507.75 ($257.75) 203% $1,379.45
Department totals: Fund Revenues $90,250.00 $21,567.51 $96,891.34 )
($ssal.3a 101% $e7,3e2.74
REVENUE Totals $90,250.00 $21,567.51 $96,891.34
($6,641.34) 107% $87,382.74
- -- EXPENSE
Department: 287 Tourism Development
Personnel Services
410.110 Salaries $0.00 $0.00 $2,003.41
($2,003.41) +++ $0.00
Account: 410 Salaries totals: $0.00 • •$0.00 $2,003.41• ($2,003.41) + ++ $0.00
Total Personnel Services: $0.00 $0.00 $2,003.41 ($2,003.41) + ++ $0.00
Employee Benefits
420.110 Unemployment Taxes $0.00 $0.00 $0.20
($0.20) + ++ $0.00
420.120 FICA Taxes $0.00 $0.00 $153.49
($153.49) + ++ $0.00
420.130 Group Insurance $0.00 $0.00 $285.96 ($285.96) +++ $0.00
420.140 Retirement $0.00 $0.00 $448.49 ($448.49) + ++ $0.00
420,150 Workers Compensation $0.00 $0.00 $18.76
_. ($18.76) + ++ $0.00
Account 420 Unemployment Taxes totals: .$0.00 ' '.$0.00 •$906.90 • ($906.90) - + ++ .• $0.00
Total Employee Benefits: $0.00 $0.00 $906.90 ($906.90) + ++ $0.00
Contracted Services
444.105 Outside Audits $10,000.00 $0.00 $0.00 $10,000.00 0% $0.00
Account: 444 Outside Audits totals: ' . $10,000.00 - $0.00. -' • .,$0.00 $10,000.00 ',.0% $0.00
Total Contracted Services: $10,000.00 $0.00 $0.00 $10,000.00 0% $0.00
user: Karl Short Pages 1 of 3 Thursday, September 29, 2011
Kodiak Island Borough
Income Statement
Through Date: 6/30/2011
Annual M -T -D Y -T -D Budget Less % of Prior Year
Budget Amount Actual Amount Actual Amount Y -T -D Actual Budget YTD Total
Fund: 277 Tourism Development
EXPENSE
Department: 287 Tourism Development
Contributions
448.311 Dig Afognak $566.00 $0.00 $566.00 $0.00 100% $566.00
448.332 Historical Society $6,500.00 $0.00 $6,500.00 $0.00 100% $6,500.00
448.364 Kod ConventionBureau $60,000.00 $0.00 $60,000.00 $0.00 100% $57,000.00
448.406 Kodiak Maritime Museum $5,000.00 $0.00 $5,000.00 $0.00 100% $12,000.00
Account: 448 Dig Afognak totals: • $72,066.00 $0.00 $72,066.00 $0.00 100% $76,066.00
Total Contributions: $72,066.00 $0.00 $72,066.00 $0.00 100% $76,066.00
Sport Goods & Services
450.220 Insur And Bonding $55.00 $0.00 $0.00 $55.00 0% $55.00
450.450 Contingencies $8,129.00 $0.00 $0.00 $8,129.00 0% $0.00
Account: 450 Insur And Bonding totals: $8,184.00 $0.00 $0.00 $8,184.00 0% $55.00
Tote1 Su000rt Goods & Services: $8,184.00 $0.00 $0.00 $8,184.00 0% $55.00
Department totals: Tourism Development $90,250.00 $0.00 $74,976.31 • $15,273.69 83% $76,121.00
REVENUE Totals: $90,250.00 $21,567.51 $96,891.34 ($6,641.34) 107% $87,382.74
EXPENDITURE Totals: $90,250.00 $0.00 $74,976.31 $15,273.69 83% $76,121.00
FundTourism Development NET GAIN /<LOSS >: $0.00 $21,567.51 $21,915.03 ($21,915.03) $11,261.74
user: Karl Short Pages 2 of 3 Thursday, September 29, 20 11